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[House Report 115-224]
[From the U.S. Government Publishing Office]

115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-224

======================================================================
 
ENHANCING STATE ENERGY SECURITY PLANNING AND EMERGENCY PREPAREDNESS ACT 
                                OF 2017

                                _______
                                

 July 17, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3050]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3050) to amend the Energy Policy and 
Conservation Act to provide Federal financial assistance to 
States to implement, review, and revise State energy security 
plans, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Committee Action.................................................     5
Committee Votes..................................................     5
Oversight Findings and Recommendations...........................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Committee Cost Estimate..........................................     6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     6
Disclosure of Directed Rule Makings..............................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     8

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Enhancing State Energy Security 
Planning and Emergency Preparedness Act of 2017''.

SEC. 2. STATE ENERGY SECURITY PLANS.

  (a) In General.--Part D of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the 
end the following:

``SEC. 367. STATE ENERGY SECURITY PLANS.

  ``(a) In General.--Federal financial assistance made available to a 
State under this part may be used for the implementation, review, and 
revision of a State energy security plan that assesses the State's 
existing circumstances and proposes methods to strengthen the ability 
of the State, in consultation with owners and operators of energy 
infrastructure in such State, to--
          ``(1) secure the energy infrastructure of the State against 
        all physical and cybersecurity threats;
          ``(2) mitigate the risk of energy supply disruptions to the 
        State and enhance the response to, and recovery from, energy 
        disruptions; and
          ``(3) ensure the State has a reliable, secure, and resilient 
        energy infrastructure.
  ``(b) Contents of Plan.--A State energy security plan described in 
subsection (a) shall--
          ``(1) address all fuels, including petroleum products, other 
        liquid fuels, coal, electricity, and natural gas, as well as 
        regulated and unregulated energy providers;
          ``(2) provide a State energy profile, including an assessment 
        of energy production, distribution, and end-use;
          ``(3) address potential hazards to each energy sector or 
        system, including physical threats and cybersecurity threats 
        and vulnerabilities;
          ``(4) provide a risk assessment of energy infrastructure and 
        cross-sector interdependencies;
          ``(5) provide a risk mitigation approach to enhance 
        reliability and end-use resilience; and
          ``(6) address multi-State, Indian Tribe, and regional 
        coordination planning and response, and to the extent 
        practicable, encourage mutual assistance in cyber and physical 
        response plans.
  ``(c) Coordination.--In developing a State energy security plan under 
this section, the energy office of the State shall, to the extent 
practicable, coordinate with--
          ``(1) the public utility or service commission of the State;
          ``(2) energy providers from the private sector; and
          ``(3) other entities responsible for maintaining fuel or 
        electric reliability.
  ``(d) Financial Assistance.--A State is not eligible to receive 
Federal financial assistance under this part, for any purpose, for a 
fiscal year unless the Governor of such State submits to the Secretary, 
with respect to such fiscal year--
          ``(1) a State energy security plan described in subsection 
        (a) that meets the requirements of subsection (b); or
          ``(2) after an annual review of the State energy security 
        plan by the Governor--
                  ``(A) any necessary revisions to such plan; or
                  ``(B) a certification that no revisions to such plan 
                are necessary.
  ``(e) Technical Assistance.--Upon request of the Governor of a State, 
the Secretary may provide information and technical assistance, and 
other assistance, in the development, implementation, or revision of a 
State energy security plan.
  ``(f) Sunset.--This section shall expire on October 31, 2022.''.
  (b) Authorization of Appropriations.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended--
          (1) by striking ``$125,000,000'' and inserting 
        ``$90,000,000''; and
          (2) by striking ``2007 through 2012'' and inserting ``2018 
        through 2022''.
  (c) Technical and Conforming Amendments.--
          (1) Conforming amendments.--Section 363 of the Energy Policy 
        and Conservation Act (42 U.S.C. 6323) is amended--
                  (A) by redesignating subsection (f) as subsection 
                (e); and
                  (B) by striking subsection (e).
          (2) Technical amendment.--Section 366(3)(B)(i) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6326(3)(B)(i)) is 
        amended by striking ``approved under section 367''.
          (3) Reference.--The item relating to ``Department of Energy--
        Energy Conservation'' in title II of the Department of the 
        Interior and Related Agencies Appropriations Act, 1985 (42 
        U.S.C. 6323a) is amended by striking ``sections 361 through 
        366'' and inserting ``sections 361 through 367''.
          (4) Table of sections.--The table of sections for part D of 
        title III of the Energy Policy and Conservation Act is amended 
        by adding at the end the following:

``Sec. 367. State energy security plans.''.

                          Purpose and Summary

    H.R. 3050, Enhancing State Energy Security Planning and 
Emergency Preparedness Act, was introduced by Rep. Fred Upton 
(R-MI) and Rep. Bobby Rush (D-IL) on June 23, 2017. H.R. 3050 
would provide federal financial assistance to States to 
implement, review, and revise State energy security plans. The 
legislation would replace the existing energy emergency 
planning requirements under section 363 of the Energy and 
Policy Conservation Act with provisions that strengthen the 
ability of States to secure the energy infrastructure of the 
United States against physical and cybersecurity threats and to 
mitigate against energy supply disruptions. In addition, the 
legislation establishes the elements a State must include when 
developing a State energy security plan. A State's energy 
security plan must address physical and cybersecurity threats 
and vulnerabilities across the energy sector and systems; 
include a State energy profile; identify risks to energy 
infrastructure; including cross-sector interdependencies; 
specify risk mitigation approaches to enhance reliability and 
end-use resilience; and address multi-state and regional 
coordination and planning.

                  Background and Need for Legislation

    The United States' energy infrastructure is comprised of a 
vast network of energy and electricity delivery systems. These 
intricate and highly interdependent systems enable almost every 
aspect of our daily lives. The nation's economy, security, and 
the health and safety of its citizens depend upon the reliable 
and uninterrupted delivery of fuels and electricity. Since the 
inception of the Department of Energy's State Energy Program in 
1975, the manner in which energy and power is generated, 
transmitted, and delivered continues to rapidly change and 
evolve. Recent cyber-related events have raised concerns about 
the security and resiliency of the nation's energy and 
electricity systems.\1\ States and Congress recognize the need 
to prioritize energy security, emergency planning, and energy 
infrastructure protection.
---------------------------------------------------------------------------
    \1\See Analysis of the Cyber Attack on the Ukrainian Power Grid by 
SANS ICS and E-ISAC, March 18, 2016.
---------------------------------------------------------------------------
    On June 14, 2017, the Energy and Commerce Committee 
scheduled a hearing titled ``States' Perspectives on Energy 
Security Planning, Emergency Preparedness, and State Energy 
Programs'' and received testimony from the National Association 
of State Energy Officials, the National Association of 
Regulatory Utility Commissioners, along with representatives of 
several state governments including Texas, Washington, Georgia, 
and Michigan. Although the hearing was ultimately cancelled due 
to extraordinary circumstances, the written testimony of the 
witnesses was posted publicly and the witnesses made themselves 
available for questions from Committee and Members' staff.

The Department of Energy's State Energy Program

    The Department of Energy's (DOE) State Energy Program 
provides federal financial and technical assistance to help 
States with energy security planning efforts. DOE's State 
Energy Program originated as the State Energy Conservation 
Program and was first authorized under part D of title III of 
the Energy Policy and Conservation Act (EPCA) of 1975.\2\ The 
purpose of the program was to promote the conservation of 
energy and reduce the rate of growth of energy demand.\3\ EPCA 
directed the DOE's Secretary to establish procedures and 
guidelines for the development and implementation of specific 
State energy conservation programs and to provide financial and 
technical assistance to States for these programs.\4\ Section 
362 of part D of title III of EPCA invites the Governors of 
each State to submit a report to the Secretary of Energy that 
includes a plan that outlines a State's energy conservation 
goals, including cost of implementation and estimated energy 
savings. States are eligible for federal financial assistance 
for State Energy Conservation plans if they meet the mandatory 
requirements under section 362(c)(1-6) of part D of title III 
of EPCA.\5\
---------------------------------------------------------------------------
    \2\Energy Policy Conservation Act of 1975, 42 U.S.C. 
Sec. Sec. 6321-6326.
    \3\Energy Policy Conservation Act of 1975, 42 U.S.C. 
Sec. Sec. 6321(b).
    \4\Id.
    \5\Energy Policy Conservation Act of 1975, 42 U.S.C. 
Sec. Sec. 6321-6326.
---------------------------------------------------------------------------
    Throughout the 1980s and early 1990s, several statutes, 
including the Energy Policy Act of 1992, amended the State 
Energy Conservation Program. In 1996, the DOE's State Energy 
Program was established by consolidating the State Energy 
Conservation Program and the Institutional Conservation 
Program.\6\ The State Energy Conservation Program provided 
State funding for energy efficiency and renewable energy 
activities.\7\ The Institutional Conservation Program provided 
schools and hospitals with technical analysis of their 
buildings and installed conservation retrofits based on those 
analyses.\8\
---------------------------------------------------------------------------
    \6\For more information see U.S. Department of Energy, State Energy 
Program: Operations Manual (2014).
    \7\Id.
    \8\Id.
---------------------------------------------------------------------------
    The State Energy Program is administered by DOE's Office of 
Energy Efficiency and Renewable Energy and is funded through 
several sources, including congressional appropriations, State 
matching funds, and income generated by State Energy Program 
activities.\9\ Congress appropriates funds annually to support 
program activities, which includes funding for formula grants, 
competitive awards, and technical assistance.\10\
---------------------------------------------------------------------------
    \9\Id.
    \10\Id.
---------------------------------------------------------------------------
    Since the Energy Policy and Conservation Act of 1975, 
several subsequent statutes have reauthorized the State Energy 
Program, including the Energy Conservation and Production Act 
of 1976, the Energy Efficiency Programs Improvement Act of 
1990, the Energy Policy Act of 1992, Energy Independence and 
Security Act of 2007, and the American Reinvestment and 
Recovery Act.

State energy security and emergency preparedness

    Since the 1970s, State energy emergency planning, often 
called energy assurance, has evolved significantly.\11\ 
Initially focused on petroleum shortages, these initial 
planning efforts were aimed at mitigating the rising cost of 
energy and reducing energy demand.\12\ The electricity and 
natural gas sectors have addressed shortages and response 
planning typically as part of the regulation of electric and 
gas utilities.\13\
---------------------------------------------------------------------------
    \11\For more information see National Association of State Energy 
Officials, State Energy Assurance Guidelines (Version 3.1 2009).
    \12\Id.
    \13\Id.
---------------------------------------------------------------------------
    The State Energy Efficiency Programs Improvement Act of 
1990\14\ amended the Energy Policy Conservation Act (EPCA) of 
1975 by including energy emergency planning requirements as a 
supplement to State energy conservation plans. Under this 
provision, federal financial assistance for the entire section 
was contingent upon a State designing an energy emergency 
planning program for an energy supply disruption.\15\ The 
energy emergency plan must include an implementation strategy 
that included regional coordination.\16\ The submission of 
these plans has been for informational purposes and has not 
required approval of the Secretary of Energy.\17\
---------------------------------------------------------------------------
    \14\State Energy Efficiency Programs Improvement Act of 1990, 42 
U.S.C. Sec. Sec. 6323(e).
    \15\Energy Policy Conservation Act of 1975, 42 U.S.C. 
Sec. Sec. 6323(e)(2).
    \16\Id.
    \17\Id.
---------------------------------------------------------------------------

                            Committee Action

    The Committee on Energy and Commerce has not held hearings 
on the legislation.
    On June 21, 2017, the Subcommittee on Energy met in open 
markup session and forwarded a discussion draft similar to H.R. 
3050, without amendment, to the full Committee by a voice vote.
    On June 28, 2017, the full Committee on Energy and Commerce 
met in open markup session and ordered H.R. 3050, as amended, 
favorably reported to the House by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. There were no record votes taken in connection with 
ordering H.R. 3050 reported.

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee has not held hearings on this 
legislation.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 3050 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
increase energy emergency planning requirements under the 
Energy and Policy Conservation Act to strengthen the ability of 
States to secure the energy infrastructure of the United States 
against physical and cybersecurity threats and vulnerabilities. 
The legislation also aims to mitigate the risk of fuel and 
electric supply disruptions.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3050 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3050 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee finds 
that H.R. 3050 contains no directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides the short title of ``Enhancing State 
Energy Security Planning and Emergency Preparedness Act of 
2017.''

Section 2(a). State Energy Security Plans

    This section amends Part D of title III of the Energy 
Policy and Conservation Act (EPCA) by adding at the end a new 
``Section 367. State Energy Security Plans.''
    EPCA Section 367(a) states that federal financial 
assistance made available to a State under this part may be 
used for the implementation, review, and revision of a State 
energy security plan that assesses the State's existing 
circumstances and proposes methods to strengthen the ability of 
a State, in consultation with owners and operators of energy 
infrastructure in such State to (1) secure the energy 
infrastructure of the State against all physical and 
cybersecurity threats; (2) mitigate the risk of energy supply 
disruptions to the State and enhance response to, and recovery 
from energy disruptions; and (3) ensures the State has a 
reliable, secure, and resilient energy infrastructure.
    EPCA section 367(b) specifies the requirements of a State 
energy security plan. The plan shall (1) address all fuels, 
including but not limited to petroleum products, other liquid 
fuels, coal, electricity, and natural gas, as well as regulated 
and unregulated energy providers; (2) provide a State energy 
profile, including energy production, distribution, and end-
use; (3) address potential hazards to each energy sector or 
system, including physical and cybersecurity threats and 
vulnerabilities; (4) provide a risk assessment of energy 
infrastructure and cross-sector interdependencies; (5) provide 
a risk mitigation approach to enhance reliability and end-use 
resilience; and (6) address multi-State, Indian Tribe, and 
regional coordination planning and response, and to the extent 
practicable, encourage mutual assistance in cyber and physical 
response plans.
    EPCA section 367(c) requires that State energy offices 
shall, to the extent practicable, coordinate with (1) the 
public utility or service commission of the State; (2) energy 
providers from the private sector; and (3) other entities 
responsible for maintaining fuel or electric reliability.
    EPCA section 367(d) instructs that a State is not eligible 
to receive financial assistance available under this part for 
any purpose, for a fiscal year unless the Governor of a State 
submits to the Secretary of the Department of Energy with 
regards to a certain fiscal year a State energy security plan 
described in subsection (a) that meets the requirements of 
subsection (b); or after an annual review of the State energy 
security plan by the Governor, any necessary revisions to such 
plan; or a certification that no revisions to such plan are 
necessary.
    EPCA section 367(e) states that the Secretary of Energy may 
provide information and technical assistance, and other 
assistance, in the development, implementation, or revision of 
a State energy security plan, upon request of the Governor of a 
State.
    EPCA section 367(f) specifies that the Energy Secretary's 
authority to carry out this section shall expire on October 31, 
2022.

Section 2(b). Authorization of appropriations

    This section amends section 365(f) of the Energy Policy and 
Conservation Act by striking ``$125,000,000'' and inserting 
``$90,000,000'' and by striking ``2007 through 2012'' and 
inserting ``2018 through 2022''.

Section 2(c). Technical and conforming amendments

    This section provides technical and conforming amendments 
for the Energy Policy and Conservation Act and for the 
Department of the Interior and Related Agencies Appropriations 
Act of 1985.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                   ENERGY POLICY AND CONSERVATION ACT

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Energy Policy and Conservation Act''.

                            TABLE OF CONTENTS

     * * * * * * *

                 TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

               Part D--State Energy Conservation Programs

     * * * * * * *
Sec. 367. State energy security plans.
     * * * * * * *

TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *

Part D--State Energy Conservation Plans

           *       *       *       *       *       *       *

                      federal assistance to states

  Sec. 363. (a) Upon request of the Governor of any State, the 
Secretary shall provide, subject to the availability of 
personnel and funds, information and technical assistance, 
including model State laws and proposed regulations relating to 
energy conservation, and other assistance in--
          (1) the preparation of the reports described in 
        section 362, and
          (2) the development, implementation, or modification 
        of an energy conservation plan of such State submitted 
        under section 362 (b) or (e).
  (b)(1) The Secretary may grant Federal financial assistance 
pursuant to this section for the purpose of assisting such 
State in the development of any such energy conservation plan 
or in the implementation or modification of a State energy 
conservation plan or part thereof which has been submitted to 
and approved by the Secretary pursuant to this part.
  (2) In determining whether to approve a State energy 
conservation plan submitted under section 362 (b) or (e), the 
Secretary--
          (A) shall take into account the impact of local 
        economic, climatic, geographic, and other unique 
        conditions and requirements of such State on the 
        opportunity to conserve and to improve efficiency in 
        the use of energy in such State; and
          (B) may extend the period of time during which a 
        State energy conservation feasibility report or State 
        energy conservation plan may be submitted if the 
        Secretary determines that participation by the State 
        submitting such report or plan is likely to result in 
        significant progress toward achieving the purposes of 
        this Act.
No such plan shall be disapproved without notice and an 
opportunity to present views.
  (3) In determining the amount of Federal financial assistance 
to be provided to any State under this subsection, the 
Secretary shall consider--
          (A) the contribution to energy conservation which can 
        reasonably be expected,
          (B) the number of people affected by such plan, and
          (C) the consistency of such plan with the purposes of 
        this Act, and such other factors as the Secretary deems 
        appropriate.
  (c) Each recipient of Federal financial assistance under 
subsection (b) shall keep such records as the Secretary shall 
require, including records which fully disclose the amount and 
disposition by each recipient of the proceeds of such 
assistance, the total cost of the plan, program, projects, 
measures, or systems for which such assistance was given or 
used, the source and amount of funds for such plan, program, 
projects, measures, or systems not supplied by the Secretary, 
and such other records as the Secretary determines necessary to 
facilitate an effective audit and performance evaluation. The 
Secretary and Comptroller General of the United States, or any 
of their duly authorized representatives, shall have access for 
the purpose of audit and examination, at reasonable times and 
under reasonable conditions to any pertinent books, documents, 
papers, and records of any recipient of Federal assistance 
under this part.
  (d) Each State receiving Federal financial assistance 
pursuant to this section shall provide reasonable assurance to 
the Secretary that it has established policies and procedures 
designed to assure that Federal financial assistance under this 
part and under part G of this title will be used to supplement, 
and not to supplant, State and local funds, and to the extent 
practicable, to increase the amount of such funds that 
otherwise would be available, in the absence of such Federal 
financial assistance, for those programs set forth in the State 
energy conservation plan approved pursuant to subsection (b).
  [(e)(1) Effective October 1, 1991, to be eligible for Federal 
financial assistance pursuant to this section, a State shall 
submit to the Secretary, as a supplement to its energy 
conservation plan, an energy emergency planning program for an 
energy supply disruption, as designed by the State consistent 
with applicable Federal and State law. The contingency plan 
provided for by the program shall include an implementation 
strategy or strategies (including regional coordination) for 
dealing with energy emergencies. The submission of such plan 
shall be for informational purposes only and without any 
requirement of approval by the Secretary.
  [(2) Federal financial assistance made available under this 
part to a State may be used to develop and conduct the energy 
emergency planning program requirement referred to in paragraph 
(1).]
  [(f)] (e) If the Secretary determines that a State has 
demonstrated a commitment to improving the energy efficiency of 
buildings within such State, the Secretary may, beginning in 
fiscal year 1994, provide up to $1,000,000 to such State for 
deposit into a revolving fund established by such State for the 
purpose of financing energy efficiency improvements in State 
and local government buildings. In making such determination 
the Secretary shall consider whether--
          (1) such State, or a majority of the units of local 
        government with jurisdiction over building energy codes 
        within such State, has adopted codes for energy 
        efficiency in new buildings that are at least as 
        stringent as American Society of Heating, 
        Refrigerating, and Air-Conditioning Engineers Standard 
        90.1-1989 (with respect to commercial buildings) and 
        Council of American Building Officials Model Energy 
        Code, 1992 (with respect to residential buildings);
          (2) such State has established a program, including a 
        revolving fund, to finance energy efficiency 
        improvement projects in State and local government 
        facilities and buildings; and
          (3) such State has obtained funding from non-Federal 
        sources, including but not limited to, oil overcharge 
        funds, State or local government appropriations, or 
        utility contributions (including rebates) equal to or 
        greater than three times the amount provided by the 
        Secretary under this subsection for deposit into such 
        revolving fund.

           *       *       *       *       *       *       *

                           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.
  (b) In carrying out the provisions of sections 362 and 364 
and subsection (a) of section 363, the Secretary shall consult 
with appropriate departments and Federal agencies.
  (c) The Secretary shall, as part of the report required under 
section 657 of the Department of Energy Organization Act, 
report to the President and the Congress, and shall furnish 
copies of such report to the Governor of each State, on the 
operation of the program under this part. Such report shall 
include an estimate of the energy conservation achieved, the 
degree of State participation and achievement, a description of 
innovative conservation programs undertaken by individual 
States, and the recommendations of the Secretary, if any, for 
additional legislation.
  (d) The Federal Trade Commission shall (1) cooperate with and 
assist State agencies which have primary responsibilities for 
the protection of consumers in activities aimed at preventing 
unfair and deceptive acts or practices affecting commerce which 
relate to the implementation of measures likely to conserve, or 
improve efficiency in the use of, energy, including energy 
conservation measures and renewable resource energy measures, 
and (2) undertake its own program, pursuant to the Federal 
Trade Commission Act to prevent unfair or deceptive acts or 
practices affecting commerce which relate to the implementation 
of any such measures.
  (e) Within 90 days after the date of enactment of this 
subsection, the Secretary shall--
          (1) develop, by rule after consultation with the 
        Secretary of Housing and Urban Development, and publish 
        a list of energy conservation measures and renewable-
        resource energy measures which are eligible (on a 
        national or regional basis for financial assistance 
        pursuant to section 509 of the Housing and Urban 
        Development Act of 1970 or section 451 of the Energy 
        Conservation and Production Act;
          (2) designate, by rule, the types of, and 
        requirements for energy audits.
  (f) For the purpose of carrying out this part, there are 
authorized to be appropriated [$125,000,000] $90,000,000 for 
each of fiscal years [2007 through 2012] 2018 through 2022.
  (g)(1)(A) There is hereby established within the Department 
of Energy a State Energy Advisory Board (hereafter in this 
subsection referred to as the ``Board'') which shall consist of 
at least 18 and not more than 21 members appointed by the 
Secretary as soon as practicable but no later than September 
30, 1991. At least eight of the members of the Board shall be 
persons who serve as directors of the State agency, or a 
division of such agency, responsible for developing State 
energy conservation plans pursuant to section 362. At least 
four members shall be directors of State or local low income 
weatherization assistance programs. Other members shall be 
appointed from persons who have experience in energy efficiency 
or renewable energy programs from the private sector, consumer 
interest groups, utilities, public utility commissions, 
educational institutions, financial institutions, local 
government energy programs, or research institutions. A 
majority of the members of the Board shall be State employees.
  (B)(i) Except as provided in clause (ii), the members of the 
Board shall serve a term of three years.
  (ii) Of the members first appointed to the Board, one-third 
shall serve a term of one year, one-third shall serve a term of 
two years, and the remainder shall serve a term of three years, 
as specified by the Secretary.
  (2) The Board shall--
          (A) make recommendations to the Assistant Secretary 
        for Conservation and Renewable Energy within the 
        Department of Energy with respect to--
                  (i) the energy efficiency goals and 
                objectives of the programs carried out under 
                this part, part G of this title, and under part 
                A of title IV of the Energy Conservation and 
                Production Act; and
                  (ii) programmatic and administrative policies 
                designed to strengthen and improve the programs 
                referred to in clause (i), including actions 
                that should be considered to encourage non-
                Federal resources (including private resources) 
                to supplement Federal financial assistance;
          (B) serve as a liaison between the States and such 
        Department on energy efficiency and renewable energy 
        resource programs; and
          (C) encourage transfer of the results of research and 
        development activities carried out by the Federal 
        Government with respect to energy efficiency and 
        renewable energy resource technologies.
  (3) The Secretary shall designate one of the members of the 
Board to serve as its chairman and one to serve as its vice-
chairman. The chairman and vice-chairman shall serve in those 
offices no longer than two years.
  (4) The Secretary shall provide the Board with such 
reasonable services and facilities as may be necessary for the 
performance of its functions.
  (5) The Board shall be nonpartisan.
  (6) The Board may adopt administrative rules and procedures 
and may elect one of its members secretary of the Board.
  (7) Consistent with Federal regulations, the Secretary shall 
reimburse members of the Board for expenses (including travel 
expenses) necessarily incurred by them in the performance of 
their duties.
  (8) The Board shall meet at least twice a year and shall 
submit an annual report to the Secretary and the Congress on 
the activities carried out by the Board in the previous fiscal 
year, including an accounting of the expenses reimbursed under 
paragraph (7) with respect to the year for which the report is 
made and any recommendations it may have for administrative or 
legislative changes concerning the matters referred to in 
subparagraphs (A), (B), and (C) of paragraph (2).
  (9) The Board shall continue until terminated by law.

                              definitions

  Sec. 366. As used in this part--
          (1) The term ``appliance'' means any article, such as 
        a room air-conditioner, refrigerator-freezer, or 
        dishwasher, which the Secretary classifies as an 
        appliance for purposes of this part.
          (2) The term ``building'' means any structure which 
        includes provision for a heating or cooling system, or 
        both, or for a hot water system.
          (3) The term ``energy audit'' means any process which 
        identifies and specifies the energy and cost savings 
        which are likely to be realized through the purchase 
        and installation of particular energy conservation 
        measures or renewable-resource energy measures and 
        which--
                  (A) is carried out in accordance with rules 
                of the Secretary; and
                  (B) imposes--
                          (i) no direct costs, with respect to 
                        individuals who are occupants of 
                        dwelling units in any State having a 
                        supplemental State energy conservation 
                        plan [approved under section 367], and
                          (ii) only reasonable costs, as 
                        determined by the Secretary, with 
                        respect to any person not described in 
                        clause (i).
        Rules referred to in subparagraph (A) may include 
        minimum qualifications for, and provisions with respect 
        to conflicts of interest of, persons carrying out such 
        energy audits.
          (4) The term ``energy conservation measure'' means a 
        measure which modifies any building, building system, 
        energy consuming device associated with the building, 
        or industrial plant, the construction of which has been 
        completed prior to May 1, 1989, if such measure has 
        been determined by means of an energy audit or by the 
        Secretary, by rule under section 365(e)(1), to be 
        likely to maintain or improve the efficiency of energy 
        use and to reduce energy costs (as calculated on the 
        basis of energy cost reasonably projected over time, as 
        determined by the Secretary) in an amount sufficient to 
        enable a person to recover the total cost of purchasing 
        and installing such measure (without regard to any tax 
        benefit or Federal financial assistance applicable 
        thereto) within the period of--
                  (A) the useful life of the modification 
                involved, as determined by the Secretary, or
                  (B) 15 years after the purchase and 
                installation of such measure,
        whichever is less. Such term does not include (i) the 
        purchase or installation of any appliance, (ii) any 
        conversion from one fuel or source of energy to another 
        which is of a type which the Secretary, by rule, 
        determines is ineligible on the basis that such type of 
        conversion is inconsistent with national policy with 
        respect to energy conservation or reduction of imports 
        of fuels, or (iii) any measure, or type of measure, 
        which the Secretary determines does not have as its 
        primary purpose an improvement in efficiency of energy 
        use.
          (5) The term ``industrial plant,'' means any fixed 
        equipment or facility which is used in connection with, 
        or as part of, any process or system for industrial 
        production or output.
          (6) The term ``renewable resource energy measure'' 
        means a measure which modifies any building or 
        industrial plant, the construction of which has been 
        completed prior to the date of enactment of the Energy 
        Conservation and Production Act, if such measure has 
        been determined by means of an energy audit or by the 
        Secretary by rule under section 365(e)(1), to--
                  (A) involve changing, in whole or in part, 
                the fuel or source of the energy used to meet 
                the requirements of such building or plant from 
                a depletable source of energy to a 
                nondepletable source of energy; and
                  (B) be likely to reduce energy costs (as 
                calculated on the basis of energy costs 
                reasonably projected over time, as determined 
                by the Secretary) in an amount sufficient to 
                enable a person to recover the total cost of 
                purchasing and installing such measure (without 
                regard to any tax benefit or Federal financial 
                assistance applicable thereto) within the 
                period of--
                          (i) the useful life of the 
                        modification involved, as determined by 
                        the Secretary, or
                          (ii) 25 years after the purchase and 
                        installation of such measure,
                whichever is less.
        such term does not include the purchase or installation 
        of any appliance.
          (7) The term ``public building'' means any building 
        which is open to the public during normal business 
        hours.
          (8) The term ``transportation controls'' means any 
        plan, procedure, method, or arrangement, or any system 
        of incentives, disincentives, restrictions, and 
        requirements, which is designed to reduce the amount of 
        energy consumed in transportation, except that the term 
        does not include rationing of gasoline or diesel fuel.

SEC. 367. STATE ENERGY SECURITY PLANS.

  (a) In General.--Federal financial assistance made available 
to a State under this part may be used for the implementation, 
review, and revision of a State energy security plan that 
assesses the State's existing circumstances and proposes 
methods to strengthen the ability of the State, in consultation 
with owners and operators of energy infrastructure in such 
State, to--
          (1) secure the energy infrastructure of the State 
        against all physical and cybersecurity threats;
          (2) mitigate the risk of energy supply disruptions to 
        the State and enhance the response to, and recovery 
        from, energy disruptions; and
          (3) ensure the State has a reliable, secure, and 
        resilient energy infrastructure.
  (b) Contents of Plan.--A State energy security plan described 
in subsection (a) shall--
          (1) address all fuels, including petroleum products, 
        other liquid fuels, coal, electricity, and natural gas, 
        as well as regulated and unregulated energy providers;
          (2) provide a State energy profile, including an 
        assessment of energy production, distribution, and end-
        use;
          (3) address potential hazards to each energy sector 
        or system, including physical threats and cybersecurity 
        threats and vulnerabilities;
          (4) provide a risk assessment of energy 
        infrastructure and cross-sector interdependencies;
          (5) provide a risk mitigation approach to enhance 
        reliability and end-use resilience; and
          (6) address multi-State, Indian Tribe, and regional 
        coordination planning and response, and to the extent 
        practicable, encourage mutual assistance in cyber and 
        physical response plans.
  (c) Coordination.--In developing a State energy security plan 
under this section, the energy office of the State shall, to 
the extent practicable, coordinate with--
          (1) the public utility or service commission of the 
        State;
          (2) energy providers from the private sector; and
          (3) other entities responsible for maintaining fuel 
        or electric reliability.
  (d) Financial Assistance.--A State is not eligible to receive 
Federal financial assistance under this part, for any purpose, 
for a fiscal year unless the Governor of such State submits to 
the Secretary, with respect to such fiscal year--
          (1) a State energy security plan described in 
        subsection (a) that meets the requirements of 
        subsection (b); or
          (2) after an annual review of the State energy 
        security plan by the Governor--
                  (A) any necessary revisions to such plan; or
                  (B) a certification that no revisions to such 
                plan are necessary.
  (e) Technical Assistance.--Upon request of the Governor of a 
State, the Secretary may provide information and technical 
assistance, and other assistance, in the development, 
implementation, or revision of a State energy security plan.
  (f) Sunset.--This section shall expire on October 31, 2022.

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                              ----------                              

  DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT, 
1985

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DEPARTMENT OF ENERGY

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                          ENERGY CONSERVATION

    For necessary expenses in carrying out energy conservation 
activities, $467,969,000 to remain available until expended: 
Provided, That for the base State Energy Conservation Program 
(part D of the Energy Policy and Conservation Act, [sections 
361 through 366] sections 361 through 367, each State will 
hereafter match in cash or in kind not less than 20 percent of 
the Federal contribution: Provided further, That these funds 
may be used for grants to the Commonwealth of the Northern 
Mariana Islands, the Federated States of Micronesia, the 
Republic of the Marshall Islands, and the Republic of Palau 
under part D of title III of the Energy Policy and Conservation 
Act (relating to primary and supplemental State energy 
conservation programs, 42 U.S.C. 6321-6327) and under the 
National Energy Extension Service Act (42 U.S.C. 7001-7011): 
Provided further, That pursuant to section 111(b)(1)(B) of the 
Energy Reorganization Act of 1974, as amended, 42 U.S.C. 
5821(b)(1)(B), of the amount appropriated under this head, 
$16,000,000 shall be available for a grant for basic industry 
research facilities located at Northwestern University without 
section 111(b)(2) of such Act being applicable.

           *       *       *       *       *       *       *

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