39–471 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–474 

PROVIDING FOR THE CONSIDERATION OF THE SENATE AMENDMENTS TO 

THE BILL (H.R. 6) TO REDUCE OUR NATION’S DEPENDENCY ON FOREIGN 

OIL BY INVESTING IN CLEAN, RENEWABLE, AND ALTERNATIVE ENERGY 

RESOURCES, PROMOTING NEW EMERGING ENERGY TECHNOLOGIES, 

DEVELOPING GREATER EFFICIENCY, AND CREATING A STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE TO INVEST IN ALTERNATIVE ENERGY, AND FOR OTHER PURPOSES 

DECEMBER 5, 2007.—Referred to the House Calendar and ordered to be printed 

Mr. WELCH, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 846] 

The Committee on Rules, having had under consideration House 

Resolution 846, by a record vote 9–3, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for the consideration of the Senate 

amendments to H.R. 6, to reduce our Nation’s dependency on foreign oil by investing in clean, renewable, and alternative energy resources, promoting new emerging energy technologies, developing 

greater efficiency, and creating a Strategic Energy Efficiency and 

Renewables Reserve to invest in alternative energy, and for other 

purposes. The resolution makes in order a motion by the Majority 

Leader to concur in the Senate amendments with the House 

amendments printed in this report. The resolution waives all 

points of order against the motion except clause 10 of rule XXI. The 

resolution provides that the Senate amendments and the motion 

shall be considered as read. The resolution provides one hour of debate on the motion equally divided and controlled by the Majority 

Leader and the Minority Leader. The resolution further provides 

that the Chair may postpone further consideration of the motion to 

a time designated by the Speaker. 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the motion (except for clause 10 of rule XXI) the Committee is 


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not aware of any points of order against the motion. The waiver of 

all points of order against the motion is prophylactic in nature. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 402 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To grant an open rule. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 403 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Shimkus (IL), #8, to amend Section 211 of the Clean Air Act to create a limited alternative fuel 

program that includes renewable fuel, coal-derived fuel blended 

with renewable sources, fuel derived from biologic materials, electricity derived from renewable resources, and any other fuel that 

the Administrator determines is derived by renewable resources, 

not derived from crude oil, and would yield security or environmental benefits. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 404 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Sullivan (OK), #7, to strike title 

II, subtitle A of the bill. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 405 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Diaz-Balart. 


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Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Upton (MI), #4, to strike Title 

XIV, the Renewable Electricity Standard. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 406 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. McCrery (LA), #2, to strike the 

revenue raising provisions. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 407 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. McCrery (LA), #1, to insert 

AMT relief identical to what the House passed in H.R. 3996. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 408 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To allow any motion to strike any provision 

of the amendment which qualifies as an earmark pursuant to the 

definition of an earmark in clause 9 of rule XXI. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 409 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Shuster (PA), #5, to allow a one 

year tax credit for $500 ($1000 for a joint return) for those earning 


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200% (or less) of the poverty line whose primary source of heating 

energy is home heating oil. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 410 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Buyer (IN), #3, to strike the 

language contained in Section 413, ‘‘Energy code improvements applicable to manufactured housing.’’ Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 411 

Date: December 5, 2007. 

Measure: Senate amendments to H.R. 6. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 9–3. 

Vote by Members: McGovern—Yea; Hastings (FL)—Yea; Matsui—Yea; Cardoza—Yea; Welch—Yea; Castor—Yea; Arcuri—Yea; 

Sutton—Yea; Diaz-Balart—Nay; Hastings (WA)—Nay; Sessions— Nay; Slaughter—Yea. 

SUMMARY OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS

TO H.R. 6

Increases the fuel efficiency of vehicles to 35 miles per gallon by 

2020. Allows automakers to calculate the mileage based on vehicle 

attributes and to distinguish between cars and trucks. It requires 

manufacturers to achieve a fleet wide average of 35 miles per gallon in 2020. The bill includes incentives for the big American manufacturers to build small cars in the U.S. It extends flex fuel vehicle credits for automakers who produce vehicles that can run on E–

85 through 2019. 

Amends the current Renewable Fuel Standard in the Clean Air 

Act to require the production and use of at least 36 billion gallons 

of renewable fuel in this country by 2022, capping corn ethanol at 

15 billion gallons. This would represent more than 25% of the gasoline that we use in this country today. It also requires that an increasing portion of renewable fuels must be advanced biofuels until 

we reach 21 billion gallons in 2022. A portion of the advanced 

biofuel mandate qualifies as cellulosic biofuel that derives from a 

cellulosic feedstock. The bill also requires the production and use 

of one billion gallons of biodiesel in this country by 2012. 

Requires that 15 percent of our electricity come from renewable 

sources (Renewable Electricity Standard). The measure exempts 


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municipal and other publicly-owned power plants, federal agencies 

and rural electric coops and small private utilities, and it permits 

utilities to use energy efficiency savings to meet up to 4 percent of 

the targeted 15 percent and to give utilities more time to ramp-up 

renewable energy sales. 

Includes new energy efficiency standards for a wide range of 

products, appliances, lighting and buildings. 

Includes tax incentives for renewable energy, including solar, 

wind, biomass, geothermal technologies, clean coal, as well as biodiesel and cellulosic ethanol. Also establishes a new tax credit for 

plug-in and electric vehicles, and extends energy efficiency tax 

credit for homes, commercial buildings, and appliances. 

Authorizes $2 billion of new clean renewable energy bonds to finance facilities that generate electricity from wind, closed- and 

open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities. The 

bond authority is divided between qualifying projects of state/local/ 

tribal governments, public power providers, and electric cooperatives. 

Creates a new category of tax credit bonds for State and local 

governments to promote green community programs and initiatives 

designed to reduce greenhouse gas emissions. 

Promotes fiscal responsibility by fully paying for the $21.5 billion 

bill with repeal of $13 billion in tax giveaways for oil and gas companies, which were enacted during a time of record profits, and 

with other revenue raisers from the President’s budget. 

The bill includes energy research provisions in solar, geothermal 

and marine renewable energy. 

Authorizes a nationwide assessment of geological formations capable of sequestering carbon dioxide underground. Includes research and development in carbon sequestration, including largevolume sequestration tests in a variety of different geological formations. 

The bill directs the federal government to promote U.S. energy 

exports of clean, efficient technologies to India and China and other 

developing countries. 

Creates an Energy Efficiency and Renewable Energy Worker 

Training Program to train a quality workforce for ‘‘green’’ collar 

jobs—such as solar panel manufacturer and green building construction worker—created by federal renewable energy and energy 

efficiency initiatives. 

The bill increases loan limits to help small businesses develop 

energy efficient technologies and purchases and provides information to small businesses to reduce energy costs. 

Increases the federal share for CMAQ, promotes short-sea shipping, and includes capital grants for railroads. 

TEXT OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS TO

H.R. 6

In lieu of the matter proposed to be inserted for the text of the 

bill, H.R. 6, insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Energy Independence and Security Act of 2007’’. 


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(b) TABLE OF CONTENTS.—The table of contents of this Act is as 

follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Relationship to other law. 

TITLE I—ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL 

ECONOMY 

Subtitle A—Increased Corporate Average Fuel Economy Standards 

Sec. 101. Short title. 

Sec. 102. Average fuel economy standards for automobiles and certain other vehicles. 

Sec. 103. Definitions. 

Sec. 104. Credit trading program. 

Sec. 105. Consumer information. 

Sec. 106. Continued applicability of existing standards. 

Sec. 107. National Academy of Sciences studies. 

Sec. 108. National Academy of Sciences study of medium-duty and heavy-duty 

truck fuel economy. 

Sec. 109. Extension of flexible fuel vehicle credit program. 

Sec. 110. Periodic review of accuracy of fuel economy labeling procedures. 

Sec. 111. Consumer tire information. 

Sec. 112. Use of civil penalties for research and development. 

Sec. 113. Exemption from separate calculation requirement. 

Subtitle B—Improved Vehicle Technology 

Sec. 131. Transportation electrification. 

Sec. 132. Domestic manufacturing conversion grant program. 

Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992. 

Sec. 134. Loan guarantees for fuel-efficient automobile parts manufacturers. 

Sec. 135. Advanced battery loan guarantee program. 

Sec. 136. Advanced technology vehicles manufacturing incentive program. 

Subtitle C—Federal Vehicle Fleets 

Sec. 141. Federal vehicle fleets. 

Sec. 142. Federal fleet conservation requirements. 

TITLE II—ENERGY SECURITY THROUGH INCREASED PRODUCTION OF 

BIOFUELS 

Subtitle A—Renewable Fuel Standard 

Sec. 201. Definitions. 

Sec. 202. Renewable fuel standard. 

Sec. 203. Study of impact of Renewable Fuel Standard. 

Sec. 204. Environmental and resource conservation impacts. 

Sec. 205. Biomass based diesel and biodiesel labeling. 

Sec. 206. Study of credits for use of renewable electricity in electric vehicles. 

Sec. 207. Grants for production of advanced biofuels. 

Sec. 208. Integrated consideration of water quality in determinations on fuels and 

fuel additives. 

Sec. 209. Anti-backsliding. 

Sec. 210. Effective date, savings provision, and transition rules. 

Subtitle B—Biofuels Research and Development 

Sec. 221. Biodiesel. 

Sec. 222. Biogas. 

Sec. 223. Grants for biofuel production research and development in certain States. 

Sec. 224. Biorefinery energy efficiency. 

Sec. 225. Study of optimization of flexible fueled vehicles to use E–85 fuel. 

Sec. 226. Study of engine durability and performance associated with the use of 

biodiesel. 

Sec. 227. Study of optimization of biogas used in natural gas vehicles. 

Sec. 228. Algal biomass. 

Sec. 229. Biofuels and biorefinery information center. 

Sec. 230. Cellulosic ethanol and biofuels research. 

Sec. 231. Bioenergy research and development, authorization of appropriation. 

Sec. 232. Environmental research and development. 


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Sec. 233. Bioenergy research centers. 

Sec. 234. University based research and development grant program. 

Subtitle C—Biofuels Infrastructure 

Sec. 241. Prohibition on franchise agreement restrictions related to renewable fuel 

infrastructure. 

Sec. 242. Renewable fuel dispenser requirements. 

Sec. 243. Ethanol pipeline feasibility study. 

Sec. 244. Renewable fuel infrastructure grants. 

Sec. 245. Study of the adequacy of transportation of domestically-produced renewable fuel by railroads and other modes of transportation. 

Sec. 246. Federal fleet fueling centers. 

Sec. 247. Standard specifications for biodiesel. 

Sec. 248. Biofuels distribution and advanced biofuels infrastructure. 

Subtitle D—Environmental Safeguards 

Sec. 251. Waiver for fuel or fuel additives. 

TITLE III—ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR 

APPLIANCE AND LIGHTING 

Subtitle A—Appliance Energy Efficiency 

Sec. 301. External power supply efficiency standards. 

Sec. 302. Updating appliance test procedures. 

Sec. 303. Residential boilers. 

Sec. 304. Furnace fan standard process. 

Sec. 305. Improving schedule for standards updating and clarifying State authority. 

Sec. 306. Regional standards for furnaces, central air conditioners, and heat 

pumps. 

Sec. 307. Procedure for prescribing new or amended standards. 

Sec. 308. Expedited rulemakings. 

Sec. 309. Battery chargers. 

Sec. 310. Standby mode. 

Sec. 311. Energy standards for home appliances. 

Sec. 312. Walk-in coolers and walk-in freezers. 

Sec. 313. Electric motor efficiency standards. 

Sec. 314. Standards for single package vertical air conditioners and heat pumps. 

Sec. 315. Improved energy efficiency for appliances and buildings in cold climates. 

Sec. 316. Technical corrections. 

Subtitle B—Lighting Energy Efficiency 

Sec. 321. Efficient light bulbs. 

Sec. 322. Incandescent reflector lamp efficiency standards. 

Sec. 323. Public building energy efficient and renewable energy systems. 

Sec. 324. Metal halide lamp fixtures. 

Sec. 325. Energy efficiency labeling for consumer electronic products. 

TITLE IV—ENERGY SAVINGS IN BUILDINGS AND INDUSTRY 

Sec. 401. Definitions. 

Subtitle A—Residential Building Efficiency 

Sec. 411. Reauthorization of weatherization assistance program. 

Sec. 412. Study of renewable energy rebate programs. 

Sec. 413. Energy code improvements applicable to manufactured housing. 

Subtitle B—High-Performance Commercial Buildings 

Sec. 421. Commercial high-performance green buildings. 

Sec. 422. Zero Net Energy Commercial Buildings Initiative. 

Sec. 423. Public outreach. 

Subtitle C—High-Performance Federal Buildings 

Sec. 431. Energy reduction goals for Federal buildings. 

Sec. 432. Management of energy and water efficiency in Federal buildings. 

Sec. 433. Federal building energy efficiency performance standards. 

Sec. 434. Management of Federal building efficiency . 

Sec. 435. Leasing. 

Sec. 436. High-performance green Federal buildings. 


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Sec. 437. Federal green building performance. 

Sec. 438. Storm water runoff requirements for Federal development projects. 

Sec. 439. Cost-effective technology acceleration program. 

Sec. 440. Authorization of appropriations. 

Sec. 441. Public building life-cycle costs. 

Subtitle D—Industrial Energy Efficiency 

Sec. 451. Industrial energy efficiency. 

Sec. 452. Energy-intensive industries program. 

Sec. 453. Energy efficiency for data center buildings. 

Subtitle E—Healthy High-Performance Schools 

Sec. 461. Healthy high-performance schools. 

Sec. 462. Study on indoor environmental quality in schools. 

Subtitle F—Institutional Entities 

Sec. 471. Energy sustainability and efficiency grants and loans for institutions. 

Subtitle G—Public and Assisted Housing 

Sec. 481. Application of International Energy Conservation Code to public and assisted housing. 

Subtitle H—General Provisions 

Sec. 491. Demonstration project. 

Sec. 492. Research and development. 

Sec. 493. Environmental Protection Agency demonstration grant program for local 

governments. 

Sec. 494. Green Building Advisory Committee. 

Sec. 495. Advisory Committee on Energy Efficiency Finance. 

TITLE V—ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS 

Subtitle A—United States Capitol Complex 

Sec. 501. Capitol complex photovoltaic roof feasibility studies. 

Sec. 502. Capitol complex E–85 refueling station. 

Sec. 503. Energy and environmental measures in Capitol complex master plan. 

Sec. 504. Promoting maximum efficiency in operation of Capitol power plant. 

Sec. 505. Capitol power plant carbon dioxide emissions feasibility study and demonstration projects. 

Subtitle B—Energy Savings Performance Contracting 

Sec. 511. Authority to enter into contracts; reports. 

Sec. 512. Financing flexibility. 

Sec. 513. Promoting long-term energy savings performance contracts and verifying 

savings. 

Sec. 514. Permanent reauthorization. 

Sec. 515. Definition of energy savings. 

Sec. 516. Retention of savings. 

Sec. 517. Training Federal contracting officers to negotiate energy efficiency contracts. 

Sec. 518. Study of energy and cost savings in nonbuilding applications. 

Subtitle C—Energy Efficiency in Federal Agencies 

Sec. 521. Installation of photovoltaic system at Department of Energy headquarters 

building. 

Sec. 522. Prohibition on incandescent lamps by Coast Guard. 

Sec. 523. Standard relating to solar hot water heaters. 

Sec. 524. Federally-procured appliances with standby power. 

Sec. 525. Federal procurement of energy efficient products. 

Sec. 526. Procurement and acquisition of alternative fuels. 

Sec. 527. Government efficiency status reports. 

Sec. 528. OMB government efficiency reports and scorecards. 

Sec. 529. Electricity sector demand response. 

Subtitle D—Energy Efficiency of Public Institutions 

Sec. 531. Reauthorization of State energy programs. 

Sec. 532. Utility energy efficiency programs. 


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Subtitle E—Energy Efficiency and Conservation Block Grants 

Sec. 541. Definitions. 

Sec. 542. Energy Efficiency and Conservation Block Grant Program. 

Sec. 543. Allocation of funds. 

Sec. 544. Use of funds. 

Sec. 545. Requirements for eligible entities. 

Sec. 546. Competitive grants. 

Sec. 547. Review and evaluation. 

Sec. 548. Funding. 

TITLE VI—ACCELERATED RESEARCH AND DEVELOPMENT 

Subtitle A—Solar Energy 

Sec. 601. Short title. 

Sec. 602. Thermal energy storage research and development program. 

Sec. 603. Concentrating solar power commercial application studies. 

Sec. 604. Solar energy curriculum development and certification grants. 

Sec. 605. Daylighting systems and direct solar light pipe technology. 

Sec. 606. Solar Air Conditioning Research and Development Program. 

Sec. 607. Photovoltaic demonstration program. 

Subtitle B—Geothermal Energy 

Sec. 611. Short title. 

Sec. 612. Definitions. 

Sec. 613. Hydrothermal research and development. 

Sec. 614. General geothermal systems research and development. 

Sec. 615. Enhanced geothermal systems research and development. 

Sec. 616. Geothermal energy production from oil and gas fields and recovery and 

production of geopressured gas resources. 

Sec. 617. Cost sharing and proposal evaluation. 

Sec. 618. Center for geothermal technology transfer. 

Sec. 619. GeoPowering America. 

Sec. 620. Educational pilot program. 

Sec. 621. Reports. 

Sec. 622. Applicability of other laws. 

Sec. 623. Authorization of appropriations. 

Sec. 624. International geothermal energy development. 

Sec. 625. High cost region geothermal energy grant program. 

Subtitle C—Marine and Hydrokinetic Renewable Energy Technologies 

Sec. 631. Short title. 

Sec. 632. Definition. 

Sec. 633. Marine and hydrokinetic renewable energy research and development. 

Sec. 634. National Marine Renewable Energy Research, Development, and Demonstration Centers. 

Sec. 635. Applicability of other laws. 

Sec. 636. Authorization of appropriations. 

Subtitle D—Energy Storage for Transportation and Electric Power 

Sec. 641. Energy storage competitiveness. 

Subtitle E—Miscellaneous Provisions 

Sec. 651. Lightweight materials research and development. 

Sec. 652. Commercial insulation demonstration program. 

Sec. 653. Technical criteria for clean coal power Initiative. 

Sec. 654. H-Prize. 

Sec. 655. Bright Tomorrow Lighting Prizes. 

Sec. 656. Renewable Energy innovation manufacturing partnership. 

TITLE VII—CARBON CAPTURE AND SEQUESTRATION 

Subtitle A—Carbon Capture and Sequestration Research, Development, and 

Demonstration 

Sec. 701. Short title. 

Sec. 702. Carbon capture and sequestration research, development, and demonstration program. 

Sec. 703. Carbon capture. 

Sec. 704. Review of large-scale programs. 


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Sec. 705. Geologic sequestration training and research. 

Sec. 706. Relation to Safe Drinking Water Act. 

Sec. 707. Safety research. 

Sec. 708. University based research and development grant program. 

Subtitle B—Carbon Capture and Sequestration Assessment and Framework 

Sec. 711. Carbon dioxide sequestration capacity assessment. 

Sec. 712. Assessment of carbon sequestration and methane and nitrous oxide emissions from ecosystems. 

Sec. 713. Carbon dioxide sequestration inventory. 

Sec. 714. Framework for geological carbon sequestration on public land. 

TITLE VIII—IMPROVED MANAGEMENT OF ENERGY POLICY 

Subtitle A—Management Improvements 

Sec. 801. National media campaign. 

Sec. 802. Alaska Natural Gas Pipeline administration. 

Sec. 803. Renewable energy deployment. 

Sec. 804. Coordination of planned refinery outages. 

Sec. 805. Assessment of resources. 

Sec. 806. Sense of Congress relating to the use of renewable resources to generate 

energy. 

Sec. 807. Geothermal assessment, exploration information, and priority activities. 

Subtitle B—Prohibitions on Market Manipulation and False Information 

Sec. 811. Prohibition on market manipulation. 

Sec. 812. Prohibition on false information. 

Sec. 813. Enforcement by the Federal Trade Commission. 

Sec. 814. Penalties. 

Sec. 815. Effect on other laws. 

TITLE IX—INTERNATIONAL ENERGY PROGRAMS 

Sec. 901. Definitions. 

Subtitle A—Assistance to Promote Clean and Efficient Energy Technologies in 

Foreign Countries 

Sec. 911. United States assistance for developing countries. 

Sec. 912. United States exports and outreach programs for India, China, and other 

countries. 

Sec. 913. United States trade missions to encourage private sector trade and investment. 

Sec. 914. Actions by Overseas Private Investment Corporation. 

Sec. 915. Actions by United States Trade and Development Agency. 

Sec. 916. Deployment of international clean and efficient energy technologies and 

investment in global energy markets. 

Sec. 917. United States-Israel energy cooperation. 

Subtitle B—International Clean Energy Foundation 

Sec. 921. Definitions. 

Sec. 922. Establishment and management of Foundation. 

Sec. 923. Duties of Foundation. 

Sec. 924. Annual report. 

Sec. 925. Powers of the Foundation; related provisions. 

Sec. 926. General personnel authorities. 

Sec. 927. Authorization of appropriations. 

Subtitle C—Miscellaneous Provisions 

Sec. 931. Energy diplomacy and security within the Department of State. 

Sec. 932. National Security Council reorganization. 

Sec. 933. Annual national energy security strategy report. 

Sec. 934. Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation. 

Sec. 935. Transparency in extractive industries resource payments. 

TITLE X—GREEN JOBS 

Sec. 1001. Short title. 

Sec. 1002. Energy efficiency and renewable energy worker training program. 


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TITLE XI—ENERGY TRANSPORTATION AND INFRASTRUCTURE 

Subtitle A—Department of Transportation 

Sec. 1101. Office of Climate Change and Environment. 

Subtitle B—Railroads 

Sec. 1111. Advanced technology locomotive grant pilot program. 

Sec. 1112. Capital grants for class II and class III railroads. 

Subtitle C—Marine Transportation 

Sec. 1121. Short sea transportation initiative. 

Sec. 1122. Short sea shipping eligibility for capital construction fund. 

Sec. 1123. Short sea transportation report. 

Subtitle D—Highways 

Sec. 1131. Increased Federal share for CMAQ projects. 

Sec. 1132. Distribution of rescissions. 

Sec. 1133. Sense of Congress regarding use of complete streets design techniques. 

TITLE XII—SMALL BUSINESS ENERGY PROGRAMS 

Sec. 1201. Express loans for renewable energy and energy efficiency. 

Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy efficient technologies. 

Sec. 1203. Small business energy efficiency. 

Sec. 1204. Larger 504 loan limits to help business develop energy efficient technologies and purchases. 

Sec. 1205. Energy saving debentures. 

Sec. 1206. Investments in energy saving small businesses. 

Sec. 1207. Renewable fuel capital investment company. 

Sec. 1208. Study and report. 

TITLE XIII—SMART GRID 

Sec. 1301. Statement of policy on modernization of electricity grid. 

Sec. 1302. Smart grid system report. 

Sec. 1303. Smart grid advisory committee and smart grid task force. 

Sec. 1304. Smart grid technology research, development, and demonstration. 

Sec. 1305. Smart grid interoperability framework. 

Sec. 1306. Federal matching fund for smart grid investment costs. 

Sec. 1307. State consideration of smart grid. 

Sec. 1308. Study of the effect of private wire laws on the development of combined 

heat and power facilities. 

Sec. 1309. DOE study of security attributes of smart grid systems. 

TITLE XIV—RENEWABLE ELECTRICITY STANDARD 

Sec. 1401. Renewable electricity standard. 

TITLE XV—CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 

2007 

Sec. 1500. Short title; amendment of 1986 Code; table of contents. 

Subtitle A—Clean Renewable Energy Production Incentives 

PART I—PROVISIONS RELATING TO RENEWABLE ENERGY

Sec. 1501. Extension and modification of renewable energy credit. 

Sec. 1502. Production credit for electricity produced from marine renewables. 

Sec. 1503. Extension and modification of energy credit. 

Sec. 1504. Extension and modification of credit for residential energy efficient property. 

Sec. 1505. Extension and modification of special rule to implement FERC and State 

electric restructuring policy. 

Sec. 1506. New clean renewable energy bonds. 

PART II—PROVISIONS RELATING TO CARBON MITIGATION AND COAL

Sec. 1507. Expansion and modification of advanced coal project investment credit. 

Sec. 1508. Expansion and modification of coal gasification investment credit. 

Sec. 1509. Seven-year applicable recovery period for depreciation of qualified carbon dioxide pipeline property. 


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Sec. 1510. Special rules for refund of the coal excise tax to certain coal producers 

and exporters. 

Sec. 1511. Extension of temporary increase in coal excise tax. 

Sec. 1512. Carbon audit of the tax code. 

Subtitle B—Transportation and Domestic Fuel Security 

PART I—BIOFUELS

Sec. 1521. Credit for production of cellulosic biomass alcohol. 

Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol fuel plant 

property. 

Sec. 1523. Modification of alcohol credit. 

Sec. 1524. Extension and modification of credits for biodiesel and renewable diesel. 

Sec. 1525. Clarification of eligibility for renewable diesel credit. 

Sec. 1526. Provisions clarifying treatment of fuels with no nexus to the United 

States. 

Sec. 1527. Comprehensive study of biofuels. 

PART II—ADVANCED TECHNOLOGY MOTOR VEHICLES

Sec. 1528. Credit for new qualified plug-in electric drive motor vehicles. 

Sec. 1529. Exclusion from heavy truck tax for idling reduction units and advanced 

insulation. 

PART III—OTHER TRANSPORTATION PROVISIONS

Sec. 1530. Restructuring of New York Liberty Zone tax credits. 

Sec. 1531. Extension of transportation fringe benefit to bicycle commuters. 

Subtitle C—Energy Conservation and Efficiency 

PART I—CONSERVATION TAX CREDIT BONDS

Sec. 1541. Qualified energy conservation bonds. 

Sec. 1542. Qualified forestry conservation bonds. 

PART II—EFFICIENCY

Sec. 1543. Extension and modification of energy efficient existing homes credit. 

Sec. 1544. Extension and modification of energy efficient commercial buildings deduction. 

Sec. 1545. Modifications of energy efficient appliance credit for appliances produced 

after 2007. 

Sec. 1546. Seven-year applicable recovery period for depreciation of qualified energy management devices. 

Subtitle D—Other Provisions 

PART I—FORESTRY PROVISIONS

Sec. 1551. Deduction for qualified timber gain. 

Sec. 1552. Excise tax not applicable to section 1203 deduction of real estate investment trusts. 

Sec. 1553. Timber REIT modernization. 

Sec. 1554. Mineral royalty income qualifying income for timber REITs. 

Sec. 1555. Modification of taxable REIT subsidiary asset test for timber REITs. 

Sec. 1556. Safe harbor for timber property. 

PART II—EXXON VALDEZ

Sec. 1557. Income averaging for amounts received in connection with the Exxon 

Valdez litigation. 

Subtitle E—Revenue Provisions 

Sec. 1561. Limitation of deduction for income attributable to domestic production of 

oil, gas, or a primary products thereof . 

Sec. 1562. Elimination of the different treatment of foreign oil and gas extraction 

income and foreign oil related income for purposes of the foreign tax 

credit. 

Sec. 1563. 7-year amortization of geological and geophysical expenditures for certain major integrated oil companies. 

Sec. 1564. Broker reporting of customer’s basis in securities transactions. 

Sec. 1565. Extension of additional 0.2 percent FUTA surtax. 

Sec. 1566. Termination of treatment of natural gas distribution lines as 15-year 

property. 


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Sec. 1567. Time for payment of corporate estimated taxes. 

Sec. 1568. Modification of penalty for failure to file partnership returns. 

Subtitle F—Secure Rural Schools 

Sec. 1571. Secure rural schools and community self-determination program. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) DEPARTMENT.—The term ‘‘Department’’ means the Department of Energy. 

(2) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given the term in 

section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 

1001(a)). 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Energy. 

SEC. 3. RELATIONSHIP TO OTHER LAW. 

Except to the extent expressly provided in this Act or an amendment made by this Act, nothing in this Act or an amendment made 

by this Act supersedes, limits the authority provided or responsibility conferred by, or authorizes any violation of any provision of 

law (including a regulation), including any energy or environmental 

law or regulation. 

TITLE I—ENERGY SECURITY THROUGH IMPROVED 

VEHICLE FUEL ECONOMY 

Subtitle A—Increased Corporate Average Fuel Economy 

Standards 

SEC. 101. SHORT TITLE. 

This subtitle may be cited as the ‘‘Ten-in-Ten Fuel Economy Act’’. 

SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES 

AND CERTAIN OTHER VEHICLES. 

(a) INCREASED STANDARDS.—Section 32902 of title 49, United 

States Code, is amended— (1) in subsection (a)— (A) by striking ‘‘NON-PASSENGER AUTOMOBILES.—’’ and 

inserting ‘‘PRESCRIPTION OF STANDARDS BY REGULATION.— ’’; 

(B) by striking ‘‘(except passenger automobiles)’’ in subsection (a); and 

(C) by striking the last sentence; 

(2) by striking subsection (b) and inserting the following: ‘‘(b) STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER VEHI- CLES.—

‘‘(1) IN GENERAL.—The Secretary of Transportation, after 

consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe 

separate average fuel economy standards for—

‘‘(A) passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 

in accordance with this subsection; 

‘‘(B) non-passenger automobiles manufactured by manufacturers in each model year beginning with model year 

2011 in accordance with this subsection; 

‘‘(C) work trucks in accordance with subsection (k); and 


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‘‘(D) commercial medium-duty or heavy-duty on-highway 

vehicles in accordance with subsection (l). ‘‘(2) FUEL ECONOMY STANDARDS FOR AUTOMOBILES.— ‘‘(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL

YEARS 2011 THROUGH 2020.—The Secretary shall prescribe a 

separate average fuel economy standard for passenger 

automobiles and a separate average fuel economy standard 

for non-passenger automobiles for each model year beginning with model year 2011 to achieve a combined fuel 

economy average for model year 2020 of at least 35 miles 

per gallon for the total fleet of passenger and non-passenger automobiles manufactured for sale in the United 

States for that model year. ‘‘(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL

YEARS 2021 THROUGH 2030.—For model years 2021 through 

2030, the average fuel economy required to be attained by 

each fleet of passenger and non-passenger automobiles 

manufactured for sale in the United States shall be the 

maximum feasible average fuel economy standard for each 

fleet for that model year. 

‘‘(C) PROGRESS TOWARD STANDARD REQUIRED.—In prescribing average fuel economy standards under subparagraph (A), the Secretary shall prescribe annual fuel economy standard increases that increase the applicable average fuel economy standard ratably beginning with model 

year 2011 and ending with model year 2020. ‘‘(3) AUTHORITY OF THE SECRETARY.—The Secretary shall— ‘‘(A) prescribe by regulation separate average fuel economy standards for passenger and non-passenger automobiles based on 1 or more vehicle attributes related to 

fuel economy and express each standard in the form of a 

mathematical function; and ‘‘(B) issue regulations under this title prescribing average fuel economy standards for at least 1, but not more 

than 5, model years. 

‘‘(4) MINIMUM STANDARD.—In addition to any standard prescribed pursuant to paragraph (3), each manufacturer shall 

also meet the minimum standard for domestically manufactured passenger automobiles, which shall be the greater of— ‘‘(A) 27.5 miles per gallon; or 

‘‘(B) 92 percent of the average fuel economy projected by 

the Secretary for the combined domestic and non-domestic 

passenger automobile fleets manufactured for sale in the 

United States by all manufacturers in the model year, 

which projection shall be published in the Federal Register 

when the standard for that model year is promulgated in 

accordance with this section.’’; and 

(3) in subsection (c)— (A) by striking ‘‘(1) Subject to paragraph (2) of this subsection, the’’ and inserting ‘‘The’’; and 

(B) by striking paragraph (2). 

(b) FUEL ECONOMY STANDARD FOR WORK TRUCKS.—Section 

32902 of title 49, United States Code, is amended by adding at the 

end the following: ‘‘(k) WORK TRUCKS.—


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‘‘(1) STUDY.—Not later than 1 year after the date of the enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of 

Transportation, in consultation with the Secretary of Energy 

and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of work trucks and determine—

‘‘(A) the appropriate test procedures and methodologies 

for measuring the fuel efficiency of work trucks; ‘‘(B) the appropriate metric for measuring and expressing work truck fuel efficiency performance, taking into consideration, among other things, the work performed by 

work trucks and types of operations in which they are 

used; ‘‘(C) the range of factors, including, without limitation, 

design, functionality, use, duty cycle, infrastructure, and 

total overall energy consumption and operating costs that 

affect work truck fuel efficiency; and ‘‘(D) such other factors and conditions that could have an 

impact on a program to improve work truck fuel efficiency. ‘‘(2) RULEMAKING.—Not later than 24 months after completion of the study required under paragraph (1), the Secretary, 

in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, 

shall determine in a rulemaking proceeding how to implement 

a work truck fuel efficiency improvement program designed to 

achieve the maximum feasible improvement, and shall adopt 

and implement appropriate test methods, measurement 

metrics, fuel economy standards, and compliance and enforcement protocols that are appropriate, cost-effective, and technologically feasible for work trucks. Any fuel economy standard 

prescribed under this section shall be prescribed at least 18 

months before the model year to which it applies. The Secretary may prescribe separate standards for different classes of 

vehicles under this subsection.’’. (c) FUEL ECONOMY STANDARD FOR COMMERCIAL MEDIUM-DUTY

AND HEAVY-DUTY ON-HIGHWAY VEHICLES.—Section 32902 of title 

49, United States Code, as amended by subsection (b), is further 

amended by adding at the end the following: ‘‘(l) COMMERCIAL MEDIUM- AND HEAVY-DUTY ON-HIGHWAY VEHI- CLES.—

‘‘(1) STUDY.—Not later than 1 year after the National Academy of Sciences publishes the results of its study under section 

108 of the Ten-in-Ten Fuel Economy Act, the Secretary of 

Transportation, in consultation with the Secretary of Energy 

and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of commercial mediumand heavy-duty on-highway vehicles and determine—

‘‘(A) the appropriate test procedures and methodologies 

for measuring the fuel efficiency of such vehicles; ‘‘(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle fuel efficiency performance, taking into consideration, 

among other things, the work performed by such on-highway vehicles and types of operations in which they are 

used; 


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‘‘(C) the range of factors, including, without limitation, 

design, functionality, use, duty cycle, infrastructure, and 

total overall energy consumption and operating costs that 

affect commercial medium- and heavy-duty on-highway vehicle fuel efficiency; and ‘‘(D) such other factors and conditions that could have an 

impact on a program to improve commercial medium- and 

heavy-duty on-highway vehicle fuel efficiency. ‘‘(2) RULEMAKING.—Not later than 24 months after completion of the study required under paragraph (1), the Secretary, 

in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, 

shall determine in a rulemaking proceeding how to implement 

a commercial medium- and heavy-duty on-highway vehicle fuel 

efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt and implement 

appropriate test methods, measurement metrics, fuel economy 

standards, and compliance and enforcement protocols that are 

appropriate, cost-effective, and technologically feasible for commercial medium- and heavy-duty on-highway vehicles. Any fuel 

economy standard prescribed under this section shall be prescribed at least 18 months before the model year to which it 

applies. The Secretary may prescribe separate standards for 

different classes of vehicles under this subsection. ‘‘(3) LEAD-TIME; REGULATORY STABILITY.—The first commercial medium- and heavy-duty on-highway vehicle fuel efficiency 

regulatory program adopted pursuant to this subsection shall 

provide not less than— ‘‘(A) 4 full model years of regulatory lead-time; and 

‘‘(B) 3 full model years of regulatory stability.’’. 

SEC. 103. DEFINITIONS. 

(a) IN GENERAL.—Section 32901(a) of title 49, United States 

Code, is amended— (1) by striking paragraph (3) and inserting the following: 

‘‘(3) except as provided in section 32908 of this title, ‘automobile’ means a 4-wheeled vehicle that is propelled by fuel, or 

by alternative fuel, manufactured primarily for use on public 

streets, roads, and highways and rated at less than 10,000 

pounds gross vehicle weight, except— ‘‘(A) a vehicle operated only on a rail line; 

‘‘(B) a vehicle manufactured in different stages by 2 or 

more manufacturers, if no intermediate or final-stage manufacturer of that vehicle manufactures more than 10,000 

multi-stage vehicles per year; or 

‘‘(C) a work truck.’’; 

(2) by redesignating paragraphs (7) through (16) as paragraphs (8) through (17), respectively; 

(3) by inserting after paragraph (6) the following: 

‘‘(7) ‘commercial medium- and heavy-duty on-highway vehicle’ means an on-highway vehicle with a gross vehicle weight 

rating of 10,000 pounds or more.’’; 

(4) in paragraph (9)(A), as redesignated, by inserting ‘‘or a 

mixture of biodiesel and diesel fuel meeting the standard established by the American Society for Testing and Materials or 

under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u)) 


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for fuel containing 20 percent biodiesel (commonly known as 

‘B20’)’’ after ‘‘alternative fuel’’; 

(5) by redesignating paragraph (17), as redesignated, as 

paragraph (18); 

(6) by inserting after paragraph (16), as redesignated, the 

following: 

‘‘(17) ‘non-passenger automobile’ means an automobile that is 

not a passenger automobile or a work truck.’’; and 

(7) by adding at the end the following: 

‘‘(19) ‘work truck’ means a vehicle that—

‘‘(A) is rated at between 8,500 and 10,000 pounds gross 

vehicle weight; and 

‘‘(B) is not a medium-duty passenger vehicle (as defined 

in section 86.1803–01 of title 40, Code of Federal Regulations, as in effect on the date of the enactment of the Tenin-Ten Fuel Economy Act).’’. 

SEC. 104. CREDIT TRADING PROGRAM. 

(a) IN GENERAL.—Section 32903 of title 49, United States Code, 

is amended—

(1) by striking ‘‘section 32902(b)-(d) of this title’’ each place 

it appears and inserting ‘‘subsections (a) through (d) of section 

32902’’; 

(2) in subsection (a)(2)—

(A) by striking ‘‘3 consecutive model years’’ and inserting 

‘‘5 consecutive model years’’; 

(B) by striking ‘‘clause (1) of this subsection,’’ and inserting ‘‘paragraph (1)’’; 

(3) by redesignating subsection (f) as subsection (h); and 

(4) by inserting after subsection (e) the following: 

‘‘(f) CREDIT TRADING AMONG MANUFACTURERS.—

‘‘(1) IN GENERAL.—The Secretary of Transportation may establish, by regulation, a fuel economy credit trading program 

to allow manufacturers whose automobiles exceed the average 

fuel economy standards prescribed under section 32902 to earn 

credits to be sold to manufacturers whose automobiles fail to 

achieve the prescribed standards such that the total oil savings 

associated with manufacturers that exceed the prescribed 

standards are preserved when trading credits to manufacturers 

that fail to achieve the prescribed standards. 

‘‘(2) LIMITATION.—The trading of credits by a manufacturer 

to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of 

such automobiles shall comply with the requirements of section 

32902(b)(4), without regard to any trading of credits from other 

manufacturers. 

‘‘(g) CREDIT TRANSFERRING WITHIN A MANUFACTURER’S FLEET.—

‘‘(1) IN GENERAL.—The Secretary of Transportation shall establish by regulation a fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any 

of the average fuel economy standards prescribed under section 

32902 to transfer the credits earned under this section and to 

apply such credits within that manufacturer’s fleet to a compliance category of automobiles that fails to achieve the prescribed standards. 


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‘‘(2) YEARS FOR WHICH USED.—Credits transferred under this 

subsection are available to be used in the same model years 

that the manufacturer could have applied such credits under 

subsections (a), (b), (d), and (e), as well as for the model year 

in which the manufacturer earned such credits. 

‘‘(3) MAXIMUM INCREASE.—The maximum increase in any 

compliance category attributable to transferred credits is—

‘‘(A) for model years 2011 through 2013, 1.0 mile per gallon; 

‘‘(B) for model years 2014 through 2017, 1.5 miles per 

gallon; and 

‘‘(C) for model year 2018 and subsequent model years, 

2.0 miles per gallon. 

‘‘(4) LIMITATION.—The transfer of credits by a manufacturer 

to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of 

such automobiles shall comply with the requirements under 

section 32904(b)(4), without regard to any transfer of credits 

from other categories of automobiles described in paragraph 

(6)(B). 

‘‘(5) YEARS AVAILABLE.—A credit may be transferred under 

this subsection only if it is earned after model year 2010. 

‘‘(6) DEFINITIONS.—In this subsection: 

‘‘(A) FLEET.—The term ‘fleet’ means all automobiles 

manufactured by a manufacturer in a particular model 

year. 

‘‘(B) COMPLIANCE CATEGORY OF AUTOMOBILES.—The term 

‘compliance category of automobiles’ means any of the following 3 categories of automobiles for which compliance is 

separately calculated under this chapter: 

‘‘(i) Passenger automobiles manufactured domestically. 

‘‘(ii) Passenger automobiles not manufactured domestically. 

‘‘(iii) Non-passenger automobiles.’’. 

(b) CONFORMING AMENDMENTS.—

(1) LIMITATIONS.—Section 32902(h) of title 49, United States 

Code, is amended—

(A) in paragraph (1), by striking ‘‘and’’ at the end; 

(B) in paragraph (2), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(3) may not consider, when prescribing a fuel economy 

standard, the trading, transferring, or availability of credits 

under section 32903.’’. 

(2) SEPARATE CALCULATIONS.—Section 32904(b)(1)(B) is 

amended by striking ‘‘chapter.’’ and inserting ‘‘chapter, except 

for the purposes of section 32903.’’. 

SEC. 105. CONSUMER INFORMATION. 

Section 32908 of title 49, United States Code, is amended by adding at the end the following: 

‘‘(g) CONSUMER INFORMATION.—

‘‘(1) PROGRAM.—The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the 


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Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers—

‘‘(A) to label new automobiles sold in the United States 

with—

‘‘(i) information reflecting an automobile’s performance on the basis of criteria that the Administrator 

shall develop, not later than 18 months after the date 

of the enactment of the Ten-in-Ten Fuel Economy Act, 

to reflect fuel economy and greenhouse gas and other 

emissions over the useful life of the automobile; 

‘‘(ii) a rating system that would make it easy for 

consumers to compare the fuel economy and greenhouse gas and other emissions of automobiles at the 

point of purchase, including a designation of automobiles—

‘‘(I) with the lowest greenhouse gas emissions 

over the useful life of the vehicles; and 

‘‘(II) the highest fuel economy; and 

‘‘(iii) a permanent and prominent display that an 

automobile is capable of operating on an alternative 

fuel; and 

‘‘(B) to include in the owner’s manual for vehicles capable of operating on alternative fuels information that describes that capability and the benefits of using alternative 

fuels, including the renewable nature and environmental 

benefits of using alternative fuels. 

‘‘(2) CONSUMER EDUCATION.—

‘‘(A) IN GENERAL.—The Secretary of Transportation, in 

consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a consumer education program to improve consumer understanding of automobile 

performance described in paragraph (1)(A)(i) and to inform 

consumers of the benefits of using alternative fuel in automobiles and the location of stations with alternative fuel 

capacity. 

‘‘(B) FUEL SAVINGS EDUCATION CAMPAIGN.—The Secretary of Transportation shall establish a consumer education campaign on the fuel savings that would be recognized from the purchase of vehicles equipped with thermal 

management technologies, including energy efficient air 

conditioning systems and glass. 

‘‘(3) FUEL TANK LABELS FOR ALTERNATIVE FUEL AUTOMOBILES.—The Secretary of Transportation shall by rule require a label to be attached to the fuel compartment of vehicles 

capable of operating on alternative fuels, with the form of alternative fuel stated on the label. A label attached in compliance with the requirements of section 32905(h) is deemed to 

meet the requirements of this paragraph. 

‘‘(4) RULEMAKING DEADLINE.—The Secretary of Transportation shall issue a final rule under this subsection not later 

than 42 months after the date of the enactment of the Ten-inTen Fuel Economy Act.’’. 


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SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS. 

Nothing in this subtitle, or the amendments made by this subtitle, shall be construed to affect the application of section 32902 

of title 49, United States Code, to passenger automobiles or nonpassenger automobiles manufactured before model year 2011. 

SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an 

agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards, including— (1) an assessment of automotive technologies and costs to reflect developments since the Academy’s 2002 report evaluating 

the corporate average fuel economy standards was conducted; 

(2) an analysis of existing and potential technologies that 

may be used practically to improve automobile and mediumduty and heavy-duty truck fuel economy; 

(3) an analysis of how such technologies may be practically 

integrated into the automotive and medium-duty and heavyduty truck manufacturing process; and 

(4) an assessment of how such technologies may be used to 

meet the new fuel economy standards under chapter 329 of 

title 49, United States Code, as amended by this subtitle. 

(b) REPORT.—The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation 

of the Senate, and the Committee on Energy and Commerce of the 

House of Representatives, with its findings and recommendations 

not later than 5 years after the date on which the Secretary executes the agreement with the Academy. 

(c) QUINQUENNIAL UPDATES.—After submitting the initial report, 

the Academy shall update the report at 5 year intervals thereafter 

through 2025. 

SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY 

AND HEAVY-DUTY TRUCK FUEL ECONOMY. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an 

agreement with the National Academy of Sciences to develop a report evaluating medium-duty and heavy-duty truck fuel economy 

standards, including— (1) an assessment of technologies and costs to evaluate fuel 

economy for medium-duty and heavy-duty trucks; 

(2) an analysis of existing and potential technologies that 

may be used practically to improve medium-duty and heavyduty truck fuel economy; 

(3) an analysis of how such technologies may be practically 

integrated into the medium-duty and heavy-duty truck manufacturing process; 

(4) an assessment of how such technologies may be used to 

meet fuel economy standards to be prescribed under section 

32902(l) of title 49, United States Code, as amended by this 

subtitle; and 

(5) associated costs and other impacts on the operation of 

medium-duty and heavy-duty trucks, including congestion. 

(b) REPORT.—The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation 

of the Senate, and the Committee on Energy and Commerce of the 


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House of Representatives, with its findings and recommendations 

not later than 1 year after the date on which the Secretary executes the agreement with the Academy. 

SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM. 

(a) IN GENERAL.—Section 32906 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 32906. Maximum fuel economy increase for alternative 

fuel automobiles 

‘‘(a) IN GENERAL.—For each of model years 1993 through 2019 for 

each category of automobile (except an electric automobile), the 

maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is—

‘‘(1) 1.2 miles a gallon for each of model years 1993 through 

2014; 

‘‘(2) 1.0 miles per gallon for model year 2015; 

‘‘(3) 0.8 miles per gallon for model year 2016; 

‘‘(4) 0.6 miles per gallon for model year 2017; 

‘‘(5) 0.4 miles per gallon for model year 2018; 

‘‘(6) 0.2 miles per gallon for model year 2019; and 

‘‘(7) 0 miles per gallon for model years after 2019. 

‘‘(b) CALCULATION.—In applying subsection (a), the Administrator 

of the Environmental Protection Agency shall determine the increase in a manufacturer’s average fuel economy attributable to 

dual fueled automobiles by subtracting from the manufacturer’s average fuel economy calculated under section 32905(e) the number 

equal to what the manufacturer’s average fuel economy would be 

if it were calculated by the formula under section 32904(a)(1) by including as the denominator for each model of dual fueled automobiles the fuel economy when the automobiles are operated on 

gasoline or diesel fuel.’’. 

(b) CONFORMING AMENDMENTS.—Section 32905 of title 49, United 

States Code, is amended—

(1) in subsection (b), by striking ‘‘1993-2010,’’ and inserting 

‘‘1993 through 2019,’’; 

(2) in subsection (d), by striking ‘‘1993-2010,’’ and inserting 

‘‘1993 through 2019,’’; 

(3) by striking subsections (f) and (g); and 

(4) by redesignating subsection (h) as subsection (f). 

(c) B20 BIODIESEL FLEXIBLE FUEL CREDIT.—Section 32905(b)(2) 

of title 49, United States Code, is amended to read as follows: 

‘‘(2) .5 divided by the fuel economy—

‘‘(A) measured under subsection (a) when operating the 

model on alternative fuel; or 

‘‘(B) measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 

gallon of fuel.’’. 

SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES. 

Beginning in December, 2009, and not less often than every 5 

years thereafter, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation, 

shall—


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(1) reevaluate the fuel economy labeling procedures described in the final rule published in the Federal Register on 

December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 

and 600) to determine whether changes in the factors used to 

establish the labeling procedures warrant a revision of that 

process; and 

(2) submit a report to the Committee on Commerce, Science, 

and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives that describes the results of the reevaluation process. 

SEC. 111. CONSUMER TIRE INFORMATION. 

(a) IN GENERAL.—Chapter 323 of title 49, United States Code, is 

amended by inserting after section 32304 the following: 

‘‘§ 32304A. Consumer tire information 

‘‘(a) RULEMAKING.—

‘‘(1) IN GENERAL.—Not later than 24 months after the date 

of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for 

comment, promulgate rules establishing a national tire fuel efficiency consumer information program for replacement tires 

designed for use on motor vehicles to educate consumers about 

the effect of tires on automobile fuel efficiency, safety, and durability. 

‘‘(2) ITEMS INCLUDED IN RULE.—The rulemaking shall include—

‘‘(A) a national tire fuel efficiency rating system for 

motor vehicle replacement tires to assist consumers in 

making more educated tire purchasing decisions; 

‘‘(B) requirements for providing information to consumers, including information at the point of sale and 

other potential information dissemination methods, including the Internet; 

‘‘(C) specifications for test methods for manufacturers to 

use in assessing and rating tires to avoid variation among 

test equipment and manufacturers; and 

‘‘(D) a national tire maintenance consumer education 

program including, information on tire inflation pressure, 

alignment, rotation, and tread wear to maximize fuel efficiency, safety, and durability of replacement tires. 

‘‘(3) APPLICABILITY.—This section shall apply only to replacement tires covered under section 575.104(c) of title 49, Code of 

Federal Regulations, in effect on the date of the enactment of 

the Ten-in-Ten Fuel Economy Act. 

‘‘(b) CONSULTATION.—The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information. 

‘‘(c) REPORT TO CONGRESS.—The Secretary shall conduct periodic 

assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation 

by industry, and the contribution to national goals pertaining to 

energy consumption. The Secretary shall transmit periodic reports 

detailing the findings of such assessments to the Senate Committee 


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on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce. 

‘‘(d) TIRE MARKING.—The Secretary shall not require permanent 

labeling of any kind on a tire for the purpose of tire fuel efficiency 

information. 

‘‘(e) APPLICATION WITH STATE AND LOCAL LAWS AND REGULATIONS.—Nothing in this section prohibits a State or political subdivision thereof from enforcing a law or regulation on tire fuel efficiency consumer information that was in effect on January 1, 2006. 

After a requirement promulgated under this section is in effect, a 

State or political subdivision thereof may adopt or enforce a law or 

regulation on tire fuel efficiency consumer information enacted or 

promulgated after January 1, 2006, if the requirements of that law 

or regulation are identical to the requirement promulgated under 

this section. Nothing in this section shall be construed to preempt 

a State or political subdivision thereof from regulating the fuel efficiency of tires (including establishing testing methods for determining compliance with such standards) not otherwise preempted 

under this chapter.’’. 

(b) ENFORCEMENT.—Section 32308 of title 49, United States 

Code, is amended—

(1) by redesignating subsections (c) and (d) as subsections 

(d)and (e), respectively; and 

(2) by inserting after subsection (b) the following: 

‘‘(c) SECTION 32304A.—Any person who fails to comply with the 

national tire fuel efficiency information program under section 

32304A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.’’. 

(c) CONFORMING AMENDMENT.—The chapter analysis for chapter 

323 of title 49, United States Code, is amended by inserting after 

the item relating to section 32304 the following: 

‘‘32304A. Consumer tire information’’. 

SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT. 

Section 32912 of title 49, United States Code, is amended by adding at the end the following: 

‘‘(e) USE OF CIVIL PENALTIES.—For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general 

fund of the Treasury during the preceding fiscal year from fines, 

penalties, and other funds obtained through enforcement actions 

conducted pursuant to this section (including funds obtained under 

consent decrees), the Secretary of the Treasury, subject to the 

availability of appropriations, shall—

‘‘(1) transfer 50 percent of such total amount to the account 

providing appropriations to the Secretary of Transportation for 

the administration of this chapter, which shall be used by the 

Secretary to support rulemaking under this chapter; and 

‘‘(2) transfer 50 percent of such total amount to the account 

providing appropriations to the Secretary of Transportation for 

the administration of this chapter, which shall be used by the 

Secretary to carry out a program to make grants to manufacturers for retooling, reequipping, or expanding existing manufacturing facilities in the United States to produce advanced 

technology vehicles and components.’’. 


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SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT. 

(a) REPEAL.—Paragraphs (6), (7), and (8) of section 32904(b) of 

title 49, United States Code, are repealed. 

(b) EFFECT OF REPEAL ON EXISTING EXEMPTIONS.—Any exemption granted under section 32904(b)(6) of title 49, United States 

Code, prior to the date of the enactment of this Act shall remain 

in effect subject to its terms through model year 2013. 

(c) ACCRUAL AND USE OF CREDITS.—Any manufacturer holding 

an exemption under section 32904(b)(6) of title 49, United States 

Code, prior to the date of the enactment of this Act may accrue and 

use credits under sections 32903 and 32905 of such title begining 

with model year 2011. 

Subtitle B—Improved Vehicle Technology 

SEC. 131. TRANSPORTATION ELECTRIFICATION. 

(a) DEFINITIONS.—In this section: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Environmental Protection Agency. 

(2) BATTERY.—The term ‘‘battery’’ means an electrochemical 

energy storage system powered directly by electrical current. 

(3) ELECTRIC TRANSPORTATION TECHNOLOGY.—The term 

‘‘electric transportation technology’’ means—

(A) technology used in vehicles that use an electric 

motor for all or part of the motive power of the vehicles, 

including battery electric, hybrid electric, plug-in hybrid 

electric, fuel cell, and plug-in fuel cell vehicles, or rail 

transportation; or 

(B) equipment relating to transportation or mobile 

sources of air pollution that use an electric motor to replace an internal combustion engine for all or part of the 

work of the equipment, including—

(i) corded electric equipment linked to transportation or mobile sources of air pollution; and 

(ii) electrification technologies at airports, ports, 

truck stops, and material-handling facilities. 

(4) NONROAD VEHICLE.—The term ‘‘nonroad vehicle’’ means a 

vehicle—

(A) powered—

(i) by a nonroad engine, as that term is defined in 

section 216 of the Clean Air Act (42 U.S.C. 7550); or 

(ii) fully or partially by an electric motor powered by 

a fuel cell, a battery, or an off-board source of electricity; and 

(B) that is not a motor vehicle or a vehicle used solely 

for competition. 

(5) PLUG-IN ELECTRIC DRIVE VEHICLE.—The term ‘‘plug-in 

electric drive vehicle’’ means a vehicle that—

(A) draws motive power from a battery with a capacity 

of at least 4 kilowatt-hours; 

(B) can be recharged from an external source of electricity for motive power; and 

(C) is a light-, medium-, or heavy-duty motor vehicle or 

nonroad vehicle (as those terms are defined in section 216 

of the Clean Air Act (42 U.S.C. 7550)). 


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(6) QUALIFIED ELECTRIC TRANSPORTATION PROJECT.—The 

term ‘‘qualified electric transportation project’’ means an electric transportation technology project that would significantly 

reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum, including— (A) shipside or shoreside electrification for vessels; 

(B) truck-stop electrification; 

(C) electric truck refrigeration units; 

(D) battery powered auxiliary power units for trucks; 

(E) electric airport ground support equipment; 

(F) electric material and cargo handling equipment; 

(G) electric or dual-mode electric rail; 

(H) any distribution upgrades needed to supply electricity to the project; and 

(I) any ancillary infrastructure, including panel upgrades, battery chargers, in-situ transformers, and trenching. 

(b) PLUG-IN ELECTRIC DRIVE VEHICLE PROGRAM.— (1) ESTABLISHMENT.—The Secretary shall establish a competitive program to provide grants on a cost-shared basis to 

State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or 

nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out 1 or more projects 

to encourage the use of plug-in electric drive vehicles or other 

emerging electric vehicle technologies, as determined by the 

Secretary. 

(2) ADMINISTRATION.—The Secretary shall, in consultation 

with the Secretary of Transportation and the Administrator, 

establish requirements for applications for grants under this 

section, including reporting of data to be summarized for dissemination to grantees and the public, including safety, vehicle, and component performance, and vehicle and component 

life cycle costs. 

(3) PRIORITY.—In making awards under this subsection, the 

Secretary shall— (A) give priority consideration to applications that— (i) encourage early widespread use of vehicles described in paragraph (1); and 

(ii) are likely to make a significant contribution to 

the advancement of the production of the vehicles in 

the United States; and 

(B) ensure, to the maximum extent practicable, that the 

program established under this subsection includes a variety of applications, manufacturers, and end-uses. 

(4) REPORTING.—The Secretary shall require a grant recipient under this subsection to submit to the Secretary, on an annual basis, data relating to safety, vehicle performance, life 

cycle costs, and emissions of vehicles demonstrated under the 

grant, including emissions of greenhouse gases. 

(5) COST SHARING.—Section 988 of the Energy Policy Act of 

2005 (42 U.S.C. 16352) shall apply to a grant made under this 

subsection. 

(6) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this subsection $90,000,000 for 


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each of fiscal years 2008 through 2012, of which not less than 

1⁄3 of the total amount appropriated shall be available each fiscal year to make grants to local and municipal governments. 

(c) NEAR-TERM TRANSPORTATION SECTOR ELECTRIFICATION PRO- GRAM.— 

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the 

Secretary of Transportation and the Administrator, shall establish a program to provide grants for the conduct of qualified 

electric transportation projects. 

(2) PRIORITY.—In providing grants under this subsection, the 

Secretary shall give priority to large-scale projects and largescale aggregators of projects. 

(3) COST SHARING.—Section 988 of the Energy Policy Act of 

2005 (42 U.S.C. 16352) shall apply to a grant made under this 

subsection. 

(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this subsection $95,000,000 for 

each of fiscal years 2008 through 2013. 

(d) EDUCATION PROGRAM.— (1) IN GENERAL.—The Secretary shall develop a nationwide 

electric drive transportation technology education program 

under which the Secretary shall provide— 

(A) teaching materials to secondary schools and high 

schools; and 

(B) assistance for programs relating to electric drive system and component engineering to institutions of higher 

education. 

(2) ELECTRIC VEHICLE COMPETITION.—The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher education, 

which shall be known as the ‘‘Dr. Andrew Frank Plug-In Electric Vehicle Competition’’. 

(3) ENGINEERS.—In carrying out the program established 

under paragraph (1), the Secretary shall provide financial assistance to institutions of higher education to create new, or 

support existing, degree programs to ensure the availability of 

trained electrical and mechanical engineers with the skills necessary for the advancement of— 

(A) plug-in electric drive vehicles; and 

(B) other forms of electric drive transportation technology vehicles. 

(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as may be necessary to 

carry out this subsection. 

SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM. 

Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) 

is amended to read as follows: 

‘‘SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM. 

‘‘(a) PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall establish a program to 

encourage domestic production and sales of efficient hybrid and 

advanced diesel vehicles and components of those vehicles. 


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‘‘(2) INCLUSIONS.—The program shall include grants to automobile manufacturers and suppliers and hybrid component 

manufacturers to encourage domestic production of efficient 

hybrid, plug-in electric hybrid, plug-in electric drive, and advanced diesel vehicles. ‘‘(3) PRIORITY.—Priority shall be given to the refurbishment 

or retooling of manufacturing facilities that have recently 

ceased operation or will cease operation in the near future. ‘‘(b) COORDINATION WITH STATE AND LOCAL PROGRAMS.—The 

Secretary may coordinate implementation of this section with State 

and local programs designed to accomplish similar goals, including 

the retention and retraining of skilled workers from the manufacturing facilities, including by establishing matching grant arrangements. ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary such sums as may be necessary 

to carry out this section.’’. 

SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 

1992. 

Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) 

is amended— (1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively; 

(2) by inserting before subsection (b) the following: ‘‘(a) DEFINITIONS.—In this section: ‘‘(1) FUEL CELL ELECTRIC VEHICLE.—The term ‘fuel cell electric vehicle’ means an on-road or nonroad vehicle that uses a 

fuel cell (as defined in section 803 of the Spark M. Matsunaga 

Hydrogen Act of 2005 (42 U.S.C. 16152)). ‘‘(2) HYBRID ELECTRIC VEHICLE.—The term ‘hybrid electric vehicle’ means a new qualified hybrid motor vehicle (as defined 

in section 30B(d)(3) of the Internal Revenue Code of 1986). ‘‘(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHICLE.—The term ‘medium- or heavy-duty electric vehicle’ means an electric, hybrid electric, or plug-in hybrid electric vehicle with a gross vehicle weight of more than 8,501 pounds. 

‘‘(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The term ‘neighborhood electric vehicle’ means a 4-wheeled on-road or nonroad vehicle that—

‘‘(A) has a top attainable speed in 1 mile of more than 

20 mph and not more than 25 mph on a paved level surface; and 

‘‘(B) is propelled by an electric motor and on-board, rechargeable energy storage system that is rechargeable 

using an off-board source of electricity. 

‘‘(5) PLUG-IN ELECTRIC DRIVE VEHICLE.—The term ‘plug-in 

electric drive vehicle’ means a vehicle that—

‘‘(A) draws motive power from a battery with a capacity 

of at least 4 kilowatt-hours; 

‘‘(B) can be recharged from an external source of electricity for motive power; and 

‘‘(C) is a light-, medium-, or heavy duty motor vehicle or 

nonroad vehicle (as those terms are defined in section 216 

of the Clean Air Act (42 U.S.C. 7550).’’; 

(3) in subsection (b) (as redesignated by paragraph (1))—


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(A) by striking ‘‘The Secretary’’ and inserting the following: 

‘‘(1) ALLOCATION.—The Secretary’’; and 

(B) by adding at the end the following: 

‘‘(2) ELECTRIC VEHICLES.—Not later than January 31, 2009, 

the Secretary shall—

‘‘(A) allocate credit in an amount to be determined by 

the Secretary for—

‘‘(i) acquisition of—

‘‘(I) a hybrid electric vehicle; 

‘‘(II) a plug-in electric drive vehicle; 

‘‘(III) a fuel cell electric vehicle; 

‘‘(IV) a neighborhood electric vehicle; or 

‘‘(V) a medium- or heavy-duty electric vehicle; 

and 

‘‘(ii) investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the 

Secretary; and 

‘‘(B) allocate more than 1, but not to exceed 5, credits for 

investment in an emerging technology relating to any vehicle described in subparagraph (A) to encourage—

‘‘(i) a reduction in petroleum demand; 

‘‘(ii) technological advancement; and 

‘‘(iii) a reduction in vehicle emissions.’’; 

(4) in subsection (c) (as redesignated by paragraph (1)), by 

striking ‘‘subsection (a)’’ and inserting ‘‘subsection (b)’’; and 

(5) by adding at the end the following: 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as are necessary to carry out this 

section for each of fiscal years 2008 through 2013.’’. 

SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE 

PARTS MANUFACTURERS. 

(a) IN GENERAL.—Section 712(a)(2) of the Energy Policy Act of 

2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by inserting ‘‘and loan guarantees under section 1703’’ after 

‘‘grants’’. 

(b) CONFORMING AMENDMENT.—Section 1703(b) of the Energy 

Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by striking 

paragraph (8) and inserting the following: 

‘‘(8) Production facilities for the manufacture of fuel efficient 

vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.’’. 

SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM.—The Secretary shall establish 

a program to provide guarantees of loans by private institutions for 

the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and produced 

in the United States, including advanced lithium ion batteries and 

hybrid electrical system and component manufacturers and software designers. 

(b) REQUIREMENTS.—The Secretary may provide a loan guarantee 

under subsection (a) to an applicant if—


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(1) without a loan guarantee, credit is not available to the 

applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a); 

(2) the prospective earning power of the applicant and the 

character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in 

accordance with the terms of the loan; and 

(3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with 

remaining periods of maturity comparable to the maturity of 

the loan. 

(c) CRITERIA.—In selecting recipients of loan guarantees from 

among applicants, the Secretary shall give preference to proposals 

that—

(1) meet all applicable Federal and State permitting requirements; 

(2) are most likely to be successful; and 

(3) are located in local markets that have the greatest need 

for the facility. 

(d) MATURITY.—A loan guaranteed under subsection (a) shall 

have a maturity of not more than 20 years. 

(e) TERMS AND CONDITIONS.—The loan agreement for a loan 

guaranteed under subsection (a) shall provide that no provision of 

the loan agreement may be amended or waived without the consent 

of the Secretary. 

(f) ASSURANCE OF REPAYMENT.—The Secretary shall require that 

an applicant for a loan guarantee under subsection (a) provide an 

assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an 

amount equal to not less than 20 percent of the amount of the loan. 

(g) GUARANTEE FEE.—The recipient of a loan guarantee under 

subsection (a) shall pay the Secretary an amount determined by 

the Secretary to be sufficient to cover the administrative costs of 

the Secretary relating to the loan guarantee. 

(h) FULL FAITH AND CREDIT.—The full faith and credit of the 

United States is pledged to the payment of all guarantees made 

under this section. Any such guarantee made by the Secretary 

shall be conclusive evidence of the eligibility of the loan for the 

guarantee with respect to principal and interest. The validity of the 

guarantee shall be incontestable in the hands of a holder of the 

guaranteed loan. 

(i) REPORTS.—Until each guaranteed loan under this section has 

been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section. 

(j) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section. 

(k) TERMINATION OF AUTHORITY.—The authority of the Secretary 

to issue a loan guarantee under subsection (a) terminates on the 

date that is 10 years after the date of enactment of this Act. 

SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM. 

(a) DEFINITIONS.—In this section: 


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(1) ADVANCED TECHNOLOGY VEHICLE.—The term ‘‘advanced 

technology vehicle’’ means a light duty vehicle that meets—

(A) the Bin 5 Tier II emission standard established in 

regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean 

Air Act (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard; 

(B) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that 

Act (42 U.S.C. 7401 et seq.); and 

(C) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar 

attributes. 

(2) COMBINED FUEL ECONOMY.—The term ‘‘combined fuel 

economy’’ means—

(A) the combined city/highway miles per gallon values, 

as reported in accordance with section 32904 of title 49, 

United States Code; and 

(B) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for 

that configuration or a similar practice recommended by 

the Secretary. 

(3) ENGINEERING INTEGRATION COSTS.—The term ‘‘engineering integration costs’’ includes the cost of engineering tasks relating to—

(A) incorporating qualifying components into the design 

of advanced technology vehicles; and 

(B) designing tooling and equipment and developing 

manufacturing processes and material suppliers for production facilities that produce qualifying components or 

advanced technology vehicles. 

(4) QUALIFYING COMPONENTS.—The term ‘‘qualifying components’’ means components that the Secretary determines to 

be—

(A) designed for advanced technology vehicles; and 

(B) installed for the purpose of meeting the performance 

requirements of advanced technology vehicles. 

(b) ADVANCED VEHICLES MANUFACTURING FACILITY.—The Secretary shall provide facility funding awards under this section to 

automobile manufacturers and component suppliers to pay not 

more than 30 percent of the cost of—

(1) reequipping, expanding, or establishing a manufacturing 

facility in the United States to produce—

(A) qualifying advanced technology vehicles; or 

(B) qualifying components; and 

(2) engineering integration performed in the United States of 

qualifying vehicles and qualifying components. 

(c) PERIOD OF AVAILABILITY.—An award under subsection (b) 

shall apply to—

(1) facilities and equipment placed in service before December 30, 2020; and 


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(2) engineering integration costs incurred during the period 

beginning on the date of enactment of this Act and ending on 

December 30, 2020. 

(d) DIRECT LOAN PROGRAM.—

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000,000 in loans to eligible individuals and entities (as determined by the Secretary) 

for the costs of activities described in subsection (b). 

(2) APPLICATION.—An applicant for a loan under this subsection shall submit to the Secretary an application at such 

time, in such manner, and containing such information as the 

Secretary may require, including a written assurance that—

(A) all laborers and mechanics employed by contractors 

or subcontractors during construction, alteration, or repair 

that is financed, in whole or in part, by a loan under this 

section shall be paid wages at rates not less than those 

prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40, United States 

Code; and 

(B) the Secretary of Labor shall, with respect to the 

labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan 

Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of 

title 40, United States Code. 

(3) SELECTION OF ELIGIBLE PROJECTS.—The Secretary shall 

select eligible projects to receive loans under this subsection in 

cases in which, as determined by the Secretary, the award recipient—

(A) is financially viable without the receipt of additional 

Federal funding associated with the proposed project; 

(B) will provide sufficient information to the Secretary 

for the Secretary to ensure that the qualified investment 

is expended efficiently and effectively; and 

(C) has met such other criteria as may be established 

and published by the Secretary. 

(4) RATES, TERMS, AND REPAYMENT OF LOANS.—A loan provided under this subsection—

(A) shall have an interest rate that, as of the date on 

which the loan is made, is equal to the cost of funds to the 

Department of the Treasury for obligations of comparable 

maturity; 

(B) shall have a term equal to the lesser of—

(i) the projected life, in years, of the eligible project 

to be carried out using funds from the loan, as determined by the Secretary; and 

(ii) 25 years; 

(C) may be subject to a deferral in repayment for not 

more than 5 years after the date on which the eligible 

project carried out using funds from the loan first begins 

operations, as determined by the Secretary; and 

(D) shall be made by the Federal Financing Bank. 


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(e) IMPROVEMENT.—The Secretary shall issue regulations that require that, in order for an automobile manufacturer to be eligible 

for an award or loan under this section during a particular year, 

the adjusted average fuel economy of the manufacturer for light 

duty vehicles produced by the manufacturer during the most recent 

year for which data are available shall be not less than the average 

fuel economy for all light duty vehicles of the manufacturer for 

model year 2005. In order to determine fuel economy baselines for 

eligibility of a new manufacturer or a manufacturer that has not 

produced previously produced equivalent vehicles, the Secretary 

may substitute industry averages. 

(f) FEES.—Administrative costs shall be no more than $100,000 

or 10 basis point of the loan. 

(g) PRIORITY.—The Secretary shall, in making awards or loans to 

those manufacturers that have existing facilities, give priority to 

those facilities that are oldest or have been in existence for at least 

20 years. Such facilities can currently be sitting idle. 

(h) SET ASIDE FOR SMALL AUTOMOBILE MANUFACTURERS AND

COMPONENT SUPPLIERS.— (1) DEFINITION OF COVERED FIRM.—In this subsection, the 

term ‘‘covered firm’’ means a firm that— (A) employs less than 500 individuals; and 

(B) manufactures automobiles or components of automobiles. 

(2) SET ASIDE.—Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to 

covered firms or consortia led by a covered firm. 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012. 

Subtitle C—Federal Vehicle Fleets 

SEC. 141. FEDERAL VEHICLE FLEETS. 

Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) 

is amended— (1) by redesignating subsection (f) as subsection (g); and 

(2) by inserting after subsection (e) the following new subsection: ‘‘(f) VEHICLE EMISSION REQUIREMENTS.— ‘‘(1) DEFINITIONS.—In this subsection: ‘‘(A) FEDERAL AGENCY.—The term ‘Federal agency’ does 

not include any office of the legislative branch, except that 

it does include the House of Representatives with respect 

to an acquisition described in paragraph (2)(C). ‘‘(B) MEDIUM DUTY PASSENGER VEHICLE.—The term ‘medium duty passenger vehicle’ has the meaning given that 

term section 523.2 of title 49 of the Code of Federal Regulations, as in effect on the date of enactment of this paragraph. ‘‘(C) MEMBER’S REPRESENTATIONAL ALLOWANCE.—The 

term ‘Member’s Representational Allowance’ means the allowance described in section 101(a) of the House of Representatives Administrative Reform Technical Corrections 

Act (2 U.S.C. 57b(a)). 


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‘‘(2) PROHIBITION.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), no Federal agency shall acquire a light duty motor vehicle or medium duty passenger vehicle that is not a low 

greenhouse gas emitting vehicle. 

‘‘(B) EXCEPTION.—The prohibition in subparagraph (A) 

shall not apply to acquisition of a vehicle if the head of the 

agency certifies in writing, in a separate certification for 

each individual vehicle purchased, either—

‘‘(i) that no low greenhouse gas emitting vehicle is 

available to meet the functional needs of the agency 

and details in writing the functional needs that could 

not be met with a low greenhouse gas emitting vehicle; or 

‘‘(ii) that the agency has taken specific alternative 

more cost-effective measures to reduce petroleum consumption that—

‘‘(I) have reduced a measured and verified quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse gas reductions 

that would have been achieved through acquisition of a low greenhouse gas emitting vehicle over 

the lifetime of the vehicle; or 

‘‘(II) will reduce each year a measured and 

verified quantity of greenhouse gas emissions 

equal to or greater than the quantity of greenhouse gas reductions that would have been 

achieved each year through acquisition of a low 

greenhouse gas emitting vehicle. 

‘‘(C) SPECIAL RULE FOR VEHICLES PROVIDED BY FUNDS

CONTAINED IN MEMBERS’ REPRESENTATIONAL ALLOWANCE.—

This paragraph shall apply to the acquisition of a light 

duty motor vehicle or medium duty passenger vehicle 

using any portion of a Member’s Representational Allowance, including an acquisition under a long-term lease. 

‘‘(3) GUIDANCE.—

‘‘(A) IN GENERAL.—Each year, the Administrator of the 

Environmental Protection Agency shall issue guidance 

identifying the makes and model numbers of vehicles that 

are low greenhouse gas emitting vehicles. 

‘‘(B) CONSIDERATION.—In identifying vehicles under subparagraph (A), the Administrator shall take into account 

the most stringent standards for vehicle greenhouse gas 

emissions applicable to and enforceable against motor vehicle manufacturers for vehicles sold anywhere in the 

United States. 

‘‘(C) REQUIREMENT.—The Administrator shall not identify any vehicle as a low greenhouse gas emitting vehicle 

if the vehicle emits greenhouse gases at a higher rate than 

such standards allow for the manufacturer’s fleet average 

grams per mile of carbon dioxide-equivalent emissions for 

that class of vehicle, taking into account any emissions allowances and adjustment factors such standards provide.’’. 


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SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS. 

Part J of title III of the Energy Policy and Conservation Act (42 

U.S.C. 6374 et seq.) is amended by adding at the end the following: 

‘‘SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS. 

‘‘(a) MANDATORY REDUCTION IN PETROLEUM CONSUMPTION.—

‘‘(1) IN GENERAL.—Not later than 18 months after the date 

of enactment of this section, the Secretary shall issue regulations for Federal fleets subject to section 400AA to require 

that, beginning in fiscal year 2010, each Federal agency shall 

reduce petroleum consumption and increase alternative fuel 

consumption each year by an amount necessary to meet the 

goals described in paragraph (2). 

‘‘(2) GOALS.—The goals of the requirements under paragraph 

(1) are that not later than October 1, 2015, and for each year 

thereafter, each Federal agency shall achieve at least a 20 percent reduction in annual petroleum consumption and a 10 percent increase in annual alternative fuel consumption, as calculated from the baseline established by the Secretary for fiscal year 2005. 

‘‘(3) MILESTONES.—The Secretary shall include in the regulations described in paragraph (1)—

‘‘(A) interim numeric milestones to assess annual agency 

progress towards accomplishing the goals described in that 

paragraph; and 

‘‘(B) a requirement that agencies annually report on 

progress towards meeting each of the milestones and the 

2015 goals. 

‘‘(b) PLAN.—

‘‘(1) REQUIREMENT.—

‘‘(A) IN GENERAL.—The regulations under subsection (a) 

shall require each Federal agency to develop a plan, and 

implement the measures specified in the plan by dates 

specified in the plan, to meet the required petroleum reduction levels and the alternative fuel consumption increases, including the milestones specified by the Secretary. 

‘‘(B) INCLUSIONS.—The plan shall—

‘‘(i) identify the specific measures the agency will 

use to meet the requirements of subsection (a)(2); and 

‘‘(ii) quantify the reductions in petroleum consumption or increases in alternative fuel consumption projected to be achieved by each measure each year. 

‘‘(2) MEASURES.—The plan may allow an agency to meet the 

required petroleum reduction level through—

‘‘(A) the use of alternative fuels; 

‘‘(B) the acquisition of vehicles with higher fuel economy, 

including hybrid vehicles, neighborhood electric vehicles, 

electric vehicles, and plug-in hybrid vehicles if the vehicles 

are commercially available; 

‘‘(C) the substitution of cars for light trucks; 

‘‘(D) an increase in vehicle load factors; 

‘‘(E) a decrease in vehicle miles traveled; 

‘‘(F) a decrease in fleet size; and 

‘‘(G) other measures.’’. 


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TITLE II—ENERGY SECURITY THROUGH INCREASED 

PRODUCTION OF BIOFUELS 

Subtitle A—Renewable Fuel Standard 

SEC. 201. DEFINITIONS. 

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is 

amended to read as follows: ‘‘(1) DEFINITIONS.—In this section: ‘‘(A) ADDITIONAL RENEWABLE FUEL.—The term ‘additional renewable fuel’ means fuel that is produced from renewable biomass and that is used to replace or reduce the 

quantity of fossil fuel present in home heating oil or jet 

fuel. ‘‘(B) ADVANCED BIOFUEL.— ‘‘(i) IN GENERAL.—The term ‘advanced biofuel’ means 

renewable fuel, other than ethanol derived from corn 

starch, that has lifecycle greenhouse gas emissions, as 

determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent 

less than baseline lifecycle greenhouse gas emissions. ‘‘(ii) INCLUSIONS.—The types of fuels eligible for consideration as ‘advanced biofuel’ may include any of the 

following: ‘‘(I) Ethanol derived from cellulose, hemicellulose, or lignin. ‘‘(II) Ethanol derived from sugar or starch (other 

than corn starch). ‘‘(III) Ethanol derived from waste material, including crop residue, other vegetative waste material, animal waste, and food waste and yard 

waste. ‘‘(IV) Biomass-based diesel. 

‘‘(V) Biogas (including landfill gas and sewage 

waste treatment gas) produced through the conversion of organic matter from renewable biomass. ‘‘(VI) Butanol or other alcohols produced 

through the conversion of organic matter from renewable biomass. ‘‘(VII) Other fuel derived from cellulosic biomass. ‘‘(C) BASELINE LIFECYCLE GREENHOUSE GAS EMISSIONS.— The term ‘baseline lifecycle greenhouse gas emissions’ means the average lifecycle greenhouse gas emissions, as 

determined by the Administrator, after notice and opportunity for comment, for gasoline or diesel (whichever is 

being replaced by the renewable fuel) sold or distributed as 

transportation fuel in 2005. ‘‘(D) BIOMASS-BASED DIESEL.—The term ‘biomass-based 

diesel’ means renewable fuel that is biodiesel as defined in 

section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 

13220(f)) and that has lifecycle greenhouse gas emissions, 

as determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent less 

than the baseline lifecycle greenhouse gas emissions. Notwithstanding the preceding sentence, renewable fuel deVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00035 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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rived from co-processing biomass with a petroleum feedstock shall be advanced biofuel if it meets the requirements of subparagraph (B), but is not biomass-based diesel. ‘‘(E) CELLULOSIC BIOFUEL.—The term ‘cellulosic biofuel’ means renewable fuel derived from any cellulose, hemicellulose, or lignin that is derived from renewable biomass 

and that has lifecycle greenhouse gas emissions, as determined by the Administrator, that are at least 60 percent 

less than the baseline lifecycle greenhouse gas emissions. ‘‘(F) CONVENTIONAL BIOFUEL.—The term ‘conventional 

biofuel’ means renewable fuel that is ethanol derived from 

corn starch ‘‘(G) GREENHOUSE GAS.—The term ‘greenhouse gas’

means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride. The Administrator may include any other anthropogenically-emitted gas that is determined by the Administrator, after notice and comment, to contribute to global warming. 

‘‘(H) LIFECYCLE GREENHOUSE GAS EMISSIONS.—The term 

‘lifecycle greenhouse gas emissions’ means the aggregate 

quantity of greenhouse gas emissions (including direct 

emissions and significant indirect emissions such as significant emissions from land use changes), as determined 

by the Administrator, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through 

the distribution and delivery and use of the finished fuel 

to the ultimate consumer, where the mass values for all 

greenhouse gases are adjusted to account for their relative 

global warming potential. 

‘‘(I) RENEWABLE BIOMASS.—The term ‘renewable biomass’

means each of the following: ‘‘(i) Planted crops and crop residue harvested from 

agricultural land cleared or cultivated at any time 

prior to the enactment of this sentence that is either 

actively managed or fallow, and nonforested. ‘‘(ii) Planted trees and tree residue from actively 

managed tree plantations on non-federal land cleared 

at any time prior to enactment of this sentence, including land belonging to an Indian tribe or an Indian 

individual, that is held in trust by the United States 

or subject to a restriction against alienation imposed 

by the United States. ‘‘(iii) Animal waste material and animal byproducts. 

‘‘(iv) Slash and pre-commercial thinnings that are 

from non-federal forestlands, including forestlands belonging to an Indian tribe or an Indian individual, 

that are held in trust by the United States or subject 

to a restriction against alienation imposed by the 

United States, but not forests or forestlands that are 

ecological communities with a global or State ranking 

of critically imperiled, imperiled, or rare pursuant to 

a State Natural Heritage Program, old growth forest, 

or late successional forest. 


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‘‘(v) Biomass obtained from the immediate vicinity of 

buildings and other areas regularly occupied by people, or of public infrastructure, at risk from wildfire. ‘‘(vi) Algae. 

‘‘(vii) Separated yard waste or food waste, including 

recycled cooking and trap grease. ‘‘(J) RENEWABLE FUEL.—The term ‘renewable fuel’ means 

fuel that is produced from renewable biomass and that is 

used to replace or reduce the quantity of fossil fuel present 

in a transportation fuel. ‘‘(K) SMALL REFINERY.—The term ‘small refinery’ means 

a refinery for which the average aggregate daily crude oil 

throughput for a calendar year (as determined by dividing 

the aggregate throughput for the calendar year by the 

number of days in the calendar year) does not exceed 

75,000 barrels. ‘‘(L) TRANSPORTATION FUEL.—The term ‘transportation 

fuel’ means fuel for use in motor vehicles, motor vehicle 

engines, nonroad vehicles, or nonroad engines (except for 

ocean-going vessels).’’. 

SEC. 202. RENEWABLE FUEL STANDARD. 

(a) RENEWABLE FUEL PROGRAM.—Paragraph (2) of section 211(o) 

(42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows: 

(1) REGULATIONS.—Clause (i) of subparagraph (A) is amended by adding the following at the end thereof: ‘‘Not later than 

1 year after the date of enactment of this sentence, the Administrator shall revise the regulations under this paragraph to 

ensure that transportation fuel sold or introduced into commerce in the United States (except in noncontiguous States or 

territories), on an annual average basis, contains at least the 

applicable volume of renewable fuel, advanced biofuel, cellulosic biofuel, and biomass-based diesel, determined in accordance with subparagraph (B) and, in the case of any such renewable fuel produced from new facilities that commence construction after the date of enactment of this sentence, achieves 

at least a 20 percent reduction in lifecycle greenhouse gas 

emissions compared to baseline lifecycle greenhouse gas emissions.’’ (2) APPLICABLE VOLUMES OF RENEWABLE FUEL.—Subparagraph (B) is amended to read as follows: ‘‘(B) APPLICABLE VOLUMES.—

‘‘(i) CALENDAR YEARS AFTER 2005.—

‘‘(I) RENEWABLE FUEL.—For the purpose of subparagraph (A), the applicable volume of renewable 

fuel for the calendar years 2006 through 2022 

shall be determined in accordance with the following table: 

Applicable volume of renewable fuel 

‘‘Calendar year: (in billions of gallons): 

2006 .................................................................................................................. 4.0 

2007 .................................................................................................................. 4.7 

2008 .................................................................................................................. 9.0 

2009 .................................................................................................................. 11.1 

2010 .................................................................................................................. 12.95 

2011 .................................................................................................................. 13.95 

2012 .................................................................................................................. 15.2 

2013 .................................................................................................................. 16.55 


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Applicable volume of renewable fuel 

‘‘Calendar year: (in billions of gallons): 

2014 .................................................................................................................. 18.15 

2015 .................................................................................................................. 20.5 

2016 .................................................................................................................. 22.25 

2017 .................................................................................................................. 24.0 

2018 .................................................................................................................. 26.0 

2019 .................................................................................................................. 28.0 

2020 .................................................................................................................. 30.0 

2021 .................................................................................................................. 33.0 

2022 .................................................................................................................. 36.0 

‘‘(II) ADVANCED BIOFUEL.—For the purpose of 

subparagraph (A), of the volume of renewable fuel 

required under subclause (I), the applicable volume of advanced biofuel for the calendar years 

2009 through 2022 shall be determined in accordance with the following table: 

Applicable volume of advanced biofuel 

‘‘Calendar year: (in billions of gallons): 

2009 .................................................................................................................. 0.6 

2010 .................................................................................................................. 0.95 

2011 .................................................................................................................. 1.35 

2012 .................................................................................................................. 2.0 

2013 .................................................................................................................. 2.75 

2014 .................................................................................................................. 3.75 

2015 .................................................................................................................. 5.5 

2016 .................................................................................................................. 7.25 

2017 .................................................................................................................. 9.0 

2018 .................................................................................................................. 11.0 

2019 .................................................................................................................. 13.0 

2020 .................................................................................................................. 15.0 

2021 .................................................................................................................. 18.0 

2022 .................................................................................................................. 21.0 

‘‘(III) CELLULOSIC BIOFUEL.—For the purpose of 

subparagraph (A), of the volume of advanced 

biofuel required under subclause (II), the applicable volume of cellulosic biofuel for the calendar 

years 2010 through 2022 shall be determined in 

accordance with the following table: 

Applicable volume of cellulosic biofuel 

‘‘Calendar year: (in billions of gallons): 

2010 .................................................................................................................. 0.1 

2011 .................................................................................................................. 0.25 

2012 .................................................................................................................. 0.5 

2013 .................................................................................................................. 1.0 

2014 .................................................................................................................. 1.75 

2015 .................................................................................................................. 3.0 

2016 .................................................................................................................. 4.25 

2017 .................................................................................................................. 5.5 

2018 .................................................................................................................. 7.0 

2019 .................................................................................................................. 8.5 

2020 .................................................................................................................. 10.5 

2021 .................................................................................................................. 13.5 

2022 .................................................................................................................. 16.0 

‘‘(IV) BIOMASS-BASED DIESEL.—For the purpose 

of subparagraph (A), of the volume of advanced 

biofuel required under subclause (II), the applicable volume of biomass-based diesel for the calendar years 2009 through 2012 shall be determined in accordance with the following table: 

Applicable volume of biomass-based diesel 

‘‘Calendar year: (in billions of gallons): 

2009 .................................................................................................................. 0.5 

2010 .................................................................................................................. 0.65 


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Applicable volume of biomass-based diesel ‘‘Calendar year: (in billions of gallons): 

2011 .................................................................................................................. 0.80 

2012 .................................................................................................................. 1.0 

‘‘(ii) OTHER CALENDAR YEARS.—For the purposes of 

subparagraph (A), the applicable volumes of each fuel 

specified in the tables in clause (i) for calendar years 

after the calendar years specified in the tables shall be 

determined by the Administrator, in coordination with 

the Secretary of Energy and the Secretary of Agriculture, based on a review of the implementation of 

the program during calendar years specified in the tables, and an analysis of— ‘‘(I) the impact of the production and use of renewable fuels on the environment, including on 

air quality, climate change, conversion of wet 

lands, eco-systems, wildlife habitat, water quality, 

and water supply; ‘‘(II) the impact of renewable fuels on the energy 

security of the United States; ‘‘(III) the expected annual rate of future commercial production of renewable fuels, including 

advanced biofuels in each category (cellulosic 

biofuel and biomass-based diesel); ‘‘(IV) the impact of renewable fuels on the infrastructure of the United States, including deliverability of materials, goods, and products other 

than renewable fuel, and the sufficiency of infrastructure to deliver and use renewable fuel; ‘‘(V) the impact of the use of renewable fuels on 

the cost to consumers of transportation fuel and 

on the cost to transport goods; and ‘‘(VI) the impact of the use of renewable fuels on 

other factors, including job creation, the price and 

supply of agricultural commodities, rural economic 

development, and food prices. 

The Administrator shall promulgate rules establishing 

the applicable volumes under this clause no later than 

14 months before the first year for which such applicable volume will apply. 

‘‘(iii) APPLICABLE VOLUME OF ADVANCED BIOFUEL.—

For the purpose of making the determinations in 

clause (ii), for each calendar year, the applicable volume of advanced biofuel shall be at least the same 

percentage of the applicable volume of renewable fuel 

as in calendar year 2022. 

‘‘(iv) APPLICABLE VOLUME OF CELLULOSIC BIOFUEL.—

For the purpose of making the determinations in 

clause (ii), for each calendar year, the applicable volume of cellulosic biofuel established by the Administrator shall be based on the assumption that the Administrator will not need to issue a waiver for such 

years under paragraph (7)(D). 

‘‘(v) MINIMUM APPLICABLE VOLUME OF BIOMASSBASED DIESEL.—For the purpose of making the determinations in clause (ii), the applicable volume of bioVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00039 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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mass-based diesel shall not be less than the applicable 

volume listed in clause (i)(IV) for calendar year 2012.’’. 

(b) APPLICABLE PERCENTAGES.—Paragraph (3) of section 211(o) of 

the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows: 

(1) In subparagraph (A), by striking ‘‘2011’’ and inserting 

‘‘2021.’’

(2) In subparagraph (A), by striking ‘‘gasoline’’ and inserting 

‘‘transportation fuel, biomass-based diesel, and cellulosic 

biofuel’’. 

(3) In subparagraph (B), by striking ‘‘2012’’ and inserting 

‘‘2021’’ in clause (ii)(I). 

(4) In subparagraph (B), by striking gasoline’’ and inserting 

‘‘transportation fuel’’ in clause (ii)(II). 

(c) MODIFICATION OF GREENHOUSE GAS PERCENTAGES.—Paragraph (4) of section 211(o) of the Clean Air Act (42 U.S.C. 

7545(o)(4)) is amended to read as follows: 

‘‘(4) MODIFICATION OF GREENHOUSE GAS REDUCTION PERCENTAGES.—

‘‘(A) IN GENERAL.—The Administrator may, in the regulations under the last sentence of paragraph (2)(A)(i), adjust the 20 percent, 50 percent, and 60 percent reductions 

in lifecycle greenhouse gas emissions specified in paragraphs (2)(A)(i)(relating to renewable fuel), (1)(D) (relating 

to biomass-based diesel), (1)(B)(i)(relating to advanced 

biofuel), and (1)(E) (relating to cellulosic biofuel) to a lower 

percentage. For the 50 and 60 percent reductions, the Administrator may make such an adjustment only if he determines that generally such reduction is not commercially 

feasible for fuels made using a variety of feedstocks, technologies, and processes to meet the applicable reduction. 

‘‘(B) AMOUNT OF ADJUSTMENT.—In promulgating regulations under this paragraph, the specified 50 percent reduction in greenhouse gas emissions from advanced biofuel 

and in biomass-based diesel may not be reduced below 40 

percent. The specified 20 percent reduction in greenhouse 

gas emissions from renewable fuel may not be reduced 

below 10 percent, and the specified 60 percent reduction in 

greenhouse gas emissions from cellulosic biofuel may not 

be reduced below 50 percent. 

‘‘(C) ADJUSTED REDUCTION LEVELS.—An adjustment 

under this paragraph to a percent less than the specified 

20 percent greenhouse gas reduction for renewable fuel 

shall be the minimum possible adjustment, and the adjusted greenhouse gas reduction shall be established by 

the Administrator at the maximum achievable level, taking cost in consideration, for natural gas fired corn-based 

ethanol plants, allowing for the use of a variety of technologies and processes. An adjustment in the 50 or 60 percent greenhouse gas levels shall be the minimum possible 

adjustment for the fuel or fuels concerned, and the adjusted greenhouse gas reduction shall be established at the 

maximum achievable level, taking cost in consideration, allowing for the use of a variety of feedstocks, technologies, 

and processes. 


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‘‘(D) 5-YEAR REVIEW.—Whenever the Administrator 

makes any adjustment under this paragraph, not later 

than 5 years thereafter he shall review and revise (based 

upon the same criteria and standards as required for the 

initial adjustment) the regulations establishing the adjusted level. 

‘‘(E) SUBSEQUENT ADJUSTMENTS.—After the Administrator has promulgated a final rule under the last sentence 

of paragraph (2)(A)(i) with respect to the method of determining lifecycle greenhouse gas emissions, except as provided in subparagraph (D), the Administrator may not adjust the percent greenhouse gas reduction levels unless he 

determines that there has been a significant change in the 

analytical methodology used for determining the lifecycle 

greenhouse gas emissions. If he makes such determination, 

he may adjust the 20, 50, or 60 percent reduction levels 

through rulemaking using the criteria and standards set 

forth in this paragraph. 

‘‘(F) LIMIT ON UPWARD ADJUSTMENTS.—If, under subparagraph (D) or (E), the Administrator revises a percent 

level adjusted as provided in subparagraph (A), (B), and 

(C) to a higher percent, such higher percent may not exceed the applicable percent specified in paragraph (2)(A)(i), 

(1)(D),(1)(B)(i), or (1)(E). 

‘‘(G) APPLICABILITY OF ADJUSTMENTS.—If the Administrator adjusts, or revises, a percent level referred to in this 

paragraph or makes a change in the analytical methodology used for determining the lifecycle greenhouse gas 

emissions, such adjustment, revision, or change (or any 

combination thereof) shall only apply to renewable fuel 

from new facilities that commence construction after the 

effective date of such adjustment, revision, or change.’’. 

(d) CREDITS FOR ADDITIONAL RENEWABLE FUEL.—Paragraph (5) 

of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is 

amended by adding the following new subparagraph at the end 

thereof: 

‘‘(E) CREDITS FOR ADDITIONAL RENEWABLE FUEL.—The 

Administrator may issue regulations providing (i) for the 

generation of an appropriate amount of credits by any person that refines, blends, or imports additional renewable 

fuels specified by the Administrator and (ii) for the use of 

such credits by the generator, or the transfer of all or a 

portion of the credits to another person, for the purpose of 

complying with paragraph (2).’’. 

(e) WAIVERS.—

(1) IN GENERAL.—Paragraph (7)(A) of section 211(o) of the 

Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting 

‘‘, by any person subject to the requirements of this subsection, 

or by the Administrator on his own motion’’ after ‘‘one or more 

States’’ in subparagraph (A) and by striking out ‘‘State’’ in subparagraph (B). 

(2) CELLULOSIC BIOFUEL.—Paragraph (7) of section 211(o) of 

the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding 

the following at the end thereof: 


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‘‘(D) CELLULOSIC BIOFUEL.—(i) For any calendar year for 

which the projected volume of cellulosic biofuel production 

is less than the minimum applicable volume established 

under paragraph (2)(B), as determined by the Administrator based on the estimate provided under paragraph 

(3)(A), not later than November 30 of the preceding calendar year, the Administrator shall reduce the applicable 

volume of cellulosic biofuel required under paragraph 

(2)(B) to the projected volume available during that calendar year. For any calendar year in which the Administrator makes such a reduction, the Administrator may also 

reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph 

(2)(B) by the same or a lesser volume. ‘‘(ii) Whenever the Administrator reduces the minimum 

cellulosic biofuel volume under this subparagraph, the Administrator shall make available for sale cellulosic biofuel 

credits at the higher of $0.25 per gallon or the amount by 

which $3.00 per gallon exceeds the average wholesale price 

of a gallon of gasoline in the United States. Such amounts 

shall be adjusted for inflation by the Administrator for 

years after 2008. ‘‘(iii) 18 months after date of enactment of this subparagraph, the Administrator shall promulgate regulations to 

govern the issuance of credits under this subparagraph. 

The regulations shall set forth the method for determining 

the exact price of credits in the event of a waiver. The 

price of such credits shall not be changed more frequently 

than once each quarter. These regulations shall include 

such provisions, including limiting the credits’ uses and 

useful life, as the Administrator deems appropriate to assist market liquidity and transparency, to provide appropriate certainty for regulated entities and renewable fuel 

producers, and to limit any potential misuse of cellulosic 

biofuel credits to reduce the use of other renewable fuels, 

and for such other purposes as the Administrator determines will help achieve the goals of this subsection. The 

regulations shall limit the number of cellulosic biofuel 

credits for any calendar year to the minimum applicable 

volume (as reduced under this subparagraph) of cellulosic 

biofuel for that year.’’. 

(3) BIOMASS-BASED DIESEL.—Paragraph (7) of section 211(o) 

of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end thereof: 

‘‘(E) BIOMASS-BASED DIESEL.—

‘‘(i) MARKET EVALUATION.—The Administrator, in 

consultation with the Secretary of Energy and the Secretary of Agriculture, shall periodically evaluate the 

impact of the biomass-based diesel requirements established under this paragraph on the price of diesel 

fuel. ‘‘(ii) WAIVER.—If the Administrator determines that 

there is a significant renewable feedstock disruption or 

other market circumstances that would make the price 

of biomass-based diesel fuel increase significantly, the 


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Administrator, in consultation with the Secretary of 

Energy and the Secretary of Agriculture, shall issue 

an order to reduce, for up to a 60-day period, the 

quantity of biomass-based diesel required under subparagraph (A) by an appropriate quantity that does 

not exceed 15 percent of the applicable annual requirement for biomass-based diesel. For any calendar year 

in which the Administrator makes a reduction under 

this subparagraph, the Administrator may also reduce 

the applicable volume of renewable fuel and advanced 

biofuels requirement established under paragraph 

(2)(B) by the same or a lesser volume. ‘‘(iii) EXTENSIONS.—If the Administrator determines 

that the feedstock disruption or circumstances described in clause (ii) is continuing beyond the 60-day 

period described in clause (ii) or this clause, the Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, may issue an 

order to reduce, for up to an additional 60-day period, 

the quantity of biomass-based diesel required under 

subparagraph (A) by an appropriate quantity that 

does not exceed an additional 15 percent of the applicable annual requirement for biomass-based diesel. ‘‘(F) MODIFICATION OF APPLICABLE VOLUMES.—For any of 

the tables in paragraph (2)(B), if the Administrator 

waives—

‘‘(i) at least 20 percent of the applicable volume requirement set forth in any such table for 2 consecutive 

years; or ‘‘(ii) at least 50 percent of such volume requirement 

for a single year, 

the Administrator shall promulgate a rule (within one year 

after issuing such waiver) that modifies the applicable volumes set forth in the table concerned for all years following the final year to which the waiver applies, except 

that no such modification in applicable volumes shall be 

made for any year before 2016. In promulgating such a 

rule, the Administrator shall comply with the processes, 

criteria, and standards set forth in paragraph (2)(B)(ii).’’. 

SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD. 

(a) IN GENERAL.—The Secretary of Energy, in consultation with 

the Secretary of Agriculture and the Administrator of the Environmental Protection Agency, shall enter into an arrangement with 

the National Academy of Sciences under which the Academy shall 

conduct a study to assess the impact of the requirements described 

in section 211(o) of the Clean Air Act on each industry relating to 

the production of feed grains, livestock, food, forest products, and 

energy. 

(b) PARTICIPATION.—In conducting the study under this section, 

the National Academy of Sciences shall seek the participation, and 

consider the input, of—

(1) producers of feed grains; 

(2) producers of livestock, poultry, and pork products; 

(3) producers of food and food products; 

(4) producers of energy; 


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(5) individuals and entities interested in issues relating to 

conservation, the environment, and nutrition; 

(6) users and consumer of renewable fuels; 

(7) producers and users of biomass feedstocks; and 

(8) land grant universities. 

(c) CONSIDERATIONS.—In conducting the study, the National 

Academy of Sciences shall consider—

(1) the likely impact on domestic animal agriculture feedstocks that, in any crop year, are significantly below current 

projections; 

(2) policy options to alleviate the impact on domestic animal 

agriculture feedstocks that are significantly below current projections; and 

(3) policy options to maintain regional agricultural and silvicultural capability. 

(d) COMPONENTS.—The study shall include—

(1) a description of the conditions under which the requirements described in section 211(o) of the Clean Air Act should 

be suspended or reduced to prevent adverse impacts to domestic animal agriculture feedstocks described in subsection (c)(2) 

or regional agricultural and silvicultural capability described in 

subsection (c)(3); and 

(2) recommendations for the means by which the Federal 

Government could prevent or minimize adverse economic hardships and impacts. 

(e) DEADLINE FOR COMPLETION OF STUDY.—Not later than 18 

months after the date of enactment of this Act, the Secretary shall 

submit to Congress a report that describes the results of the study 

under this section. 

(f) PERIODIC REVIEWS.—Section 211(o) of the Clean Air Act is 

amended by adding the following at the end thereof: 

‘‘(12) PERIODIC REVIEWS.—To allow for the appropriate adjustment of the requirements described in subparagraph (B) of 

paragraph (2), the Administrator shall conduct periodic reviews of—

‘‘(A) existing technologies; 

‘‘(B) the feasibility of achieving compliance with the requirements; and 

‘‘(C) the impacts of the requirements described in subsection (a)(2) on each individual and entity described in 

paragraph (2).’’. 

SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS. 

(a) IN GENERAL.—Not later than 3 years after the enactment of 

this section and every 3 years thereafter, the Administrator of the 

Environmental Protection Agency, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall assess and 

report to Congress on the impacts to date and likely future impacts 

of the requirements of section 211(o) of the Clean Air Act on the 

following: 

(1) Environmental issues, including air quality, effects on hypoxia, pesticides, sediment, nutrient and pathogen levels in 

waters, acreage and function of waters, and soil environmental 

quality. 


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(2) Resource conservation issues, including soil conservation, 

water availability, and ecosystem health and biodiversity, including impacts on forests, grasslands, and wetlands. 

(3) The growth and use of cultivated invasive or noxious 

plants and their impacts on the environment and agriculture. 

In advance of preparing the report required by this subsection, the 

Administrator may seek the views of the National Academy of 

Sciences or another appropriate independent research institute. 

The report shall include the annual volume of imported renewable 

fuels and feedstocks for renewable fuels, and the environmental impacts outside the United States of producing such fuels and feedstocks. The report required by this subsection shall include recommendations for actions to address any adverse impacts found. 

(b) EFFECT ON AIR QUALITY AND OTHER ENVIRONMENTAL REQUIREMENTS.—Except as provided in section 211(o)(13) of the Clean 

Air Act, nothing in the amendments made by this title to section 

211(o) of the Clean Air Act shall be construed as superseding, or 

limiting, any more environmentally protective requirement under 

the Clean Air Act, or under any other provision of State or Federal 

law or regulation, including any environmental law or regulation. 

SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING. 

(a) IN GENERAL.—Each retail diesel fuel pump shall be labeled 

in a manner that informs consumers of the percent of biomassbased diesel or biodiesel that is contained in the biomass-based diesel blend or biodiesel blend that is offered for sale, as determined 

by the Federal Trade Commission. 

(b) LABELING REQUIREMENTS.—Not later than 180 days after the 

date of enactment of this section, the Federal Trade Commission 

shall promulgate biodiesel labeling requirements as follows: 

(1) Biomass-based diesel blends or biodiesel blends that contain less than or equal to 5 percent biomass-based diesel or 

biodiesel by volume and that meet ASTM D975 diesel specifications shall not require any additional labels. 

(2) Biomass based diesel blends or biodiesel blends that contain more than 5 percent biomass-based diesel or biodiesel by 

volume but not more than 20 percent by volume shall be labeled ‘‘contains biomass-based diesel or biodiesel in quantities 

between 5 percent and 20 percent’’. 

(3) Biomass-based diesel or biodiesel blends that contain 

more than 20 percent biomass based or biodiesel by volume 

shall be labeled ‘‘contains more than 20 percent biomass-based 

diesel or biodiesel’’. 

(c) DEFINITIONS.—In this section: 

(1) ASTM.—The term ‘‘ASTM’’ means the American Society of 

Testing and Materials. 

(2) BIOMASS-BASED DIESEL.—The term ‘‘biomass-based diesel’’

means biodiesel as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)). 

(3) BIODIESEL.—The term ‘‘biodiesel’’ means the monoalkyl 

esters of long chain fatty acids derived from plant or animal 

matter that meet—

(A) the registration requirements for fuels and fuel additives under this section; and 

(B) the requirements of ASTM standard D6751. 


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(4) BIOMASS-BASED DIESEL AND BIODIESEL BLENDS.—The 

terms ‘‘biomass-based diesel blend’’ and ‘‘biodiesel blend’’

means a blend of ‘‘biomass-based diesel’’ or ‘‘biodiesel’’ fuel that 

is blended with petroleum based diesel fuel. 

SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY 

IN ELECTRIC VEHICLES. 

(a) DEFINITION OF ELECTRIC VEHICLE.—In this section, the term 

‘‘electric vehicle’’ means an electric motor vehicle (as defined in section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for 

which the rechargeable storage battery—

(1) receives a charge directly from a source of electric current 

that is external to the vehicle; and 

(2) provides a minimum of 80 percent of the motive power 

of the vehicle. 

(b) STUDY.—The Administrator of the Environmental Protection 

Agency shall conduct a study on the feasibility of issuing credits 

under the program established under section 211(o) of the Clean 

Air Act to electric vehicles powered by electricity produced from renewable energy sources. 

(c) REPORT.—Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to the Committee 

on Energy and Natural Resources of the United States Senate and 

the Committee on Energy and Commerce of the United States 

House of Representatives a report that describes the results of the 

study, including a description of—

(1) existing programs and studies on the use of renewable 

electricity as a means of powering electric vehicles; and 

(2) alternatives for—

(A) designing a pilot program to determine the feasibility 

of using renewable electricity to power electric vehicles as 

an adjunct to a renewable fuels mandate; 

(B) allowing the use, under the pilot program designed 

under subparagraph (A), of electricity generated from nuclear energy as an additional source of supply; 

(C) identifying the source of electricity used to power 

electric vehicles; and 

(D) equating specific quantities of electricity to quantities of renewable fuel under section 211(o) of the Clean 

Air Act. 

SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS. 

(a) IN GENERAL.—The Secretary of Energy shall establish a grant 

program to encourage the production of advanced biofuels. 

(b) REQUIREMENTS AND PRIORITY.—In making grants under this 

section, the Secretary—

(1) shall make awards to the proposals for advanced biofuels 

with the greatest reduction in lifecycle greenhouse gas emissions compared to the comparable motor vehicle fuel lifecycle 

emissions during calendar year 2005; and 

(2) shall not make an award to a project that does not 

achieve at least a 80 percent reduction in such lifecycle greenhouse gas emissions. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015. 


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SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS ON FUELS AND FUEL ADDITIVES. 

Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is 

amended as follows: 

(1) By striking ‘‘nonroad vehicle (A) if in the judgment of the 

Administrator’’ and inserting ‘‘nonroad vehicle if, in the judgment of the Administrator, any fuel or fuel additive or’’ ; and 

(2) In subparagraph (A), by striking ‘‘air pollution which’’ and inserting ‘‘air pollution or water pollution (including any 

degradation in the quality of groundwater) that’’. 

SEC. 209. ANTI-BACKSLIDING. 

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 

adding at the end the following: ‘‘(v) PREVENTION OF AIR QUALITY DETERIORATION.— ‘‘(1) STUDY.— ‘‘(A) IN GENERAL.—Not later than 18 months after the 

date of enactment of this subsection, the Administrator 

shall complete a study to determine whether the renewable fuel volumes required by this section will adversely 

impact air quality as a result of changes in vehicle and engine emissions of air pollutants regulated under this Act. ‘‘(B) CONSIDERATIONS.—The study shall include consideration of—

‘‘(i) different blend levels, types of renewable fuels, 

and available vehicle technologies; and ‘‘(ii) appropriate national, regional, and local air 

quality control measures. ‘‘(2) REGULATIONS.—Not later than 3 years after the date of 

enactment of this subsection, the Administrator shall— ‘‘(A) promulgate fuel regulations to implement appropriate measures to mitigate, to the greatest extent achievable, considering the results of the study under paragraph 

(1), any adverse impacts on air quality, as the result of the 

renewable volumes required by this section; or ‘‘(B) make a determination that no such measures are 

necessary.’’. 

SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION 

RULES. 

(a) TRANSITION RULES.—(1) For calendar year 2008, transportation fuel sold or introduced into commerce in the United States 

(except in noncontiguous States or territories), that is produced 

from facilities that commence construction after the date of enactment of this Act shall be treated as renewable fuel within the 

meaning of section 211(o) of the Clean Air Act only if it achieves 

at least a 20 percent reduction in lifecycle greenhouse gas emissions compared to baseline lifecycle greenhouse gas emissions. For 

calendar years 2008 and 2009, any ethanol plant that is fired with 

natural gas, biomass, or any combination thereof is deemed to be 

in compliance with such 20 percent reduction requirement and 

with the 20 percent reduction requirement of section 211(o)(1) of 

the Clean Air Act. The terms used in this subsection shall have the 

same meaning as provided in the amendment made by this Act to 

section 211(o) of the Clean Air Act. 

(2) Until January 1, 2009, the Administrator of the Environmental Protection Agency shall implement section 211(o) of the 


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Clean Air Act and the rules promulgated under that section in accordance with the provisions of that section as in effect before the 

enactment of this Act and in accordance with the rules promulgated before the enactment of this Act, except that for calendar 

year 2008, the number ‘‘8.5’’ shall be substituted for the number ‘‘5.4’’ in the table in section 211(o)(2)(B) and in the corresponding 

rules promulgated to carry out those provisions. The Administrator 

is authorized to take such other actions as may be necessary to 

carry out this paragraph notwithstanding any other provision of 

law. 

(b) SAVINGS CLAUSE.—Section 211(o) of the Clean Air Act (42 

U.S.C. 7545(o)) is amended by adding the following new paragraph 

at the end thereof: 

‘‘(13) EFFECT ON OTHER PROVISIONS.—Nothing in this subsection, or regulations issued pursuant to this subsection, shall 

affect or be construed to affect the regulatory status of carbon 

dioxide or any other greenhouse gas, or to expand or limit regulatory authority regarding carbon dioxide or any other greenhouse gas, for purposes of other provisions (including section 

165) of this Act. The previous sentence shall not affect implementation and enforcement of this subsection.’’. 

(c) EFFECTIVE DATE.—The amendments made by this title to section 211(o) of the Clean Air Act shall take effect January 1, 2009, 

except that the Administrator shall promulgate regulations to carry 

out such amendments not later than one year after the enactment 

of this Act. 

Subtitle B—Biofuels Research and Development 

SEC. 221. BIODIESEL. 

(a) BIODIESEL STUDY.—Not later than 180 days after the date of 

enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall submit 

to Congress a report on any research and development challenges 

inherent in increasing the proportion of diesel fuel sold in the 

United States that is biodiesel. 

(b) MATERIAL FOR THE ESTABLISHMENT OF STANDARDS.—The Director of the National Institute of Standards and Technology, in 

consultation with the Secretary, shall make publicly available the 

physical property data and characterization of biodiesel and other 

biofuels as appropriate. 

SEC. 222. BIOGAS. 

Not later than 180 days after the date of enactment of this Act, 

the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall submit to Congress a report on 

any research and development challenges inherent in increasing 

the amount of transportation fuels sold in the United States that 

are fuel with biogas or a blend of biogas and natural gas. 

SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN CERTAIN STATES. 

(a) IN GENERAL.—The Secretary shall provide grants to eligible 

entities for research, development, demonstration, and commercial 

application of biofuel production technologies in States with low 

rates of ethanol production, including low rates of production of cellulosic biomass ethanol, as determined by the Secretary. 


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(b) ELIGIBILITY.—To be eligible to receive a grant under this section, an entity shall—

(1)(A) be an institution of higher education (as defined in 

section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)), 

including tribally controlled colleges or universities, located in 

a State described in subsection (a); or 

(B) be a consortium including at least 1 such institution of 

higher education, and industry, State agencies, Indian tribal 

agencies, National Laboratories, or local government agencies 

located in the State; and 

(2) have proven experience and capabilities with relevant 

technologies. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary to carry out this section 

$25,000,000 for each of fiscal years 2008 through 2010. 

SEC. 224. BIOREFINERY ENERGY EFFICIENCY. 

Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) is 

amended by adding at the end the following new subsections: 

‘‘(g) BIOREFINERY ENERGY EFFICIENCY.—The Secretary shall establish a program of research, development, demonstration, and 

commercial application for increasing energy efficiency and reducing energy consumption in the operation of biorefinery facilities. 

‘‘(h) RETROFIT TECHNOLOGIES FOR THE DEVELOPMENT OF ETHANOL FROM CELLULOSIC MATERIALS.—The Secretary shall establish 

a program of research, development, demonstration, and commercial application on technologies and processes to enable biorefineries that exclusively use corn grain or corn starch as a feedstock 

to produce ethanol to be retrofitted to accept a range of biomass, 

including lignocellulosic feedstocks.’’. 

SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES 

TO USE E–85 FUEL. 

(a) IN GENERAL.—The Secretary, in consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall conduct a study of whether optimizing flexible fueled vehicles to operate using E–85 fuel would increase the fuel efficiency of flexible fueled vehicles. 

(b) REPORT.—Not later than 180 days after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Science 

and Technology and the Committee on Energy and Commerce of 

the House of Representatives, and to the Committee on Energy and 

Natural Resources, the Committee on Environment and Public 

Works, and the Committee on Commerce, Science, and Transportation of the Senate, a report that describes the results of the study 

under this section, including any recommendations of the Secretary. 

SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH THE USE OF BIODIESEL. 

(a) IN GENERAL.—Not later than 30 days after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall initiate a 

study on the effects of the use of biodiesel on the performance and 

durability of engines and engine systems. 

(b) COMPONENTS.—The study under this section shall include—


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(1) an assessment of whether the use of biodiesel lessens the 

durability and performance of conventional diesel engines and 

engine systems; and 

(2) an assessment of the effects referred to in subsection (a) 

with respect to biodiesel blends at varying concentrations, including the following percentage concentrations of biodiesel: 

(A) 5 percent biodiesel. 

(B) 10 percent biodiesel. 

(C) 20 percent biodiesel. 

(D) 30 percent biodiesel. 

(E) 100 percent biodiesel. 

(c) REPORT.—Not later than 24 months after the date of enactment of this Act, the Secretary shall submit to the Committee on 

Science and Technology and the Committee on Energy and Commerce of the House of Representatives, and to the Committee on 

Energy and Natural Resources and the Committee on Environment 

and Public Works of the Senate, a report that describes the results 

of the study under this section, including any recommendations of 

the Secretary. 

SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS 

VEHICLES. 

(a) IN GENERAL.—The Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary 

of Transportation, shall conduct a study of methods of increasing 

the fuel efficiency of vehicles using biogas by optimizing natural 

gas vehicle systems that can operate on biogas, including the advancement of vehicle fuel systems and the combination of hybridelectric and plug-in hybrid electric drive platforms with natural gas 

vehicle systems using biogas. 

(b) REPORT.—Not later than 180 days after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Energy 

and Natural Resources, the Committee on Environment and Public 

Works, and the Committee on Commerce, Science, and Transportation of the Senate, and to the Committee on Science and Technology and the Committee on Energy and Commerce of the House 

of Representatives, a report that describes the results of the study, 

including any recommendations of the Secretary. 

SEC. 228. ALGAL BIOMASS. 

(a) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committee on 

Science and Technology of the House of Representatives and the 

Committee on Energy and Natural Resources of the Senate a report on the progress of the research and development that is being 

conducted on the use of algae as a feedstock for the production of 

biofuels. 

(b) CONTENTS.—The report shall identify continuing research and 

development challenges and any regulatory or other barriers found 

by the Secretary that hinder the use of this resource, as well as 

recommendations on how to encourage and further its development 

as a viable transportation fuel. 

SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER. 

(a) IN GENERAL.—The Secretary, in cooperation with the Secretary of Agriculture, shall establish a biofuels and biorefinery inVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00050 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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formation center to make available to interested parties information on—

(1) renewable fuel feedstocks, including the varieties of fuel 

capable of being produced from various feedstocks; 

(2) biorefinery processing techniques related to various renewable fuel feedstocks; 

(3) the distribution, blending, storage, and retail dispensing 

infrastructure necessary for the transport and use of renewable 

fuels; 

(4) Federal and State laws and incentives related to renewable fuel production and use; 

(5) renewable fuel research and development advancements; 

(6) renewable fuel development and biorefinery processes 

and technologies; 

(7) renewable fuel resources, including information on programs and incentives for renewable fuels; 

(8) renewable fuel producers; 

(9) renewable fuel users; and 

(10) potential renewable fuel users. 

(b) ADMINISTRATION.—In administering the biofuels and biorefinery information center, the Secretary shall— (1) continually update information provided by the center; 

(2) make information available relating to processes and 

technologies for renewable fuel production; 

(3) make information available to interested parties on the 

process for establishing a biorefinery; and 

(4) make information and assistance provided by the center 

available through a toll-free telephone number and website. 

(c) COORDINATION AND NONDUPLICATION.—To maximum extent 

practicable, the Secretary shall ensure that the activities under 

this section are coordinated with, and do not duplicate the efforts 

of, centers at other government agencies. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section. 

SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH. 

(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term ‘‘eligible entity’’ means— (1) an 1890 Institution (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 

(7 U.S.C. 7061)); 

(2) a part B institution (as defined in section 322 of the 

Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly referred to as ‘‘Historically Black Colleges and Universities’’); 

(3) a tribal college or university (as defined in section 316(b) 

of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)); or 

(4) a Hispanic-serving institution (as defined in section 

502(a) of the Higher Education Act of 1965 (20 U.S.C. 

1101a(a)). 

(b) GRANTS.—The Secretary shall make cellulosic ethanol and 

biofuels research and development grants to 10 eligible entities selected by the Secretary to receive a grant under this section 

through a peer-reviewed competitive process. 

(c) COLLABORATION.—An eligible entity that is selected to receive 

a grant under subsection (b) shall collaborate with 1 of the BioVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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energy Research Centers of the Office of Science of the Department. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary to make grants described in subsection (b) $50,000,000 for fiscal year 2008, to remain available 

until expended. 

SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF APPROPRIATION. 

Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) 

is amended—

(1) in subsection (b)—

(A) in paragraph (2), by striking ‘‘and’’ at the end; 

(B) in paragraph (3), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(4) $963,000,000 for fiscal year 2010.’’; and 

(2) in subsection (c)—

(A) in paragraph (2)—

(i) by striking ‘‘$251,000,000’’ and inserting 

‘‘$377,000,000’’; and 

(ii) by striking ‘‘and’’ at the end; 

(B) in paragraph (3)—

(i) by striking ‘‘$274,000,000’’ and inserting 

‘‘$398,000,000’’; and 

(ii) by striking the period at the end and inserting 

‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(4) $419,000,000 for fiscal year 2010, of which $150,000,000 

shall be for section 932(d).’’. 

SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—Section 977 of the Energy Policy Act of 2005 

(42 U.S.C. 16317) is amended—

(1) in subsection (a)(1), by striking ‘‘and computational biology’’ and inserting ‘‘computational biology, and environmental 

science’’; and 

(2) in subsection (b)—

(A) in paragraph (1), by inserting ‘‘in sustainable production systems that reduce greenhouse gas emissions’’ after 

‘‘hydrogen’’; 

(B) in paragraph (3), by striking ‘‘and’’ at the end; 

(C) by redesignating paragraph (4) as paragraph (5); and 

(D) by inserting after paragraph (3) the following: 

‘‘(4) develop cellulosic and other feedstocks that are less resource and land intensive and that promote sustainable use of 

resources, including soil, water, energy, forests, and land, and 

ensure protection of air, water, and soil quality; and’’. 

(b) TOOLS AND EVALUATION.—Section 307(d) of the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(d)) is amended—

(1) in paragraph (3)(E), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end and 

inserting a semicolon; and 

(3) by adding at the end the following: 


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‘‘(5) the improvement and development of analytical tools to 

facilitate the analysis of life-cycle energy and greenhouse gas 

emissions, including emissions related to direct and indirect 

land use changes, attributable to all potential biofuel feedstocks and production processes; and 

‘‘(6) the systematic evaluation of the impact of expanded 

biofuel production on the environment, including forest lands, 

and on the food supply for humans and animals.’’. 

(c) SMALL-SCALE PRODUCTION AND USE OF BIOFUELS.—Section 

307(e) of the Biomass Research and Development Act of 2000 (7 

U.S.C. 8606(e)) is amended—

(1) in paragraph (2), by striking ‘‘and’’ at the end; 

(2) in paragraph (3), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(4) to facilitate small-scale production, local, and on-farm 

use of biofuels, including the development of small-scale gasification technologies for production of biofuel from cellulosic 

feedstocks.’’. 

SEC. 233. BIOENERGY RESEARCH CENTERS. 

Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) 

is amended by adding at the end the following: 

‘‘(f) BIOENERGY RESEARCH CENTERS.—

‘‘(1) ESTABLISHMENT OF CENTERS.—In carrying out the program under subsection (a), the Secretary shall establish at 

least 7 bioenergy research centers, which may be of varying 

size. 

‘‘(2) GEOGRAPHIC DISTRIBUTION.—The Secretary shall establish at least 1 bioenergy research center in each Petroleum Administration for Defense District or Subdistrict of a Petroleum 

Administration for Defense District. 

‘‘(3) GOALS.—The goals of the centers established under this 

subsection shall be to accelerate basic transformational research and development of biofuels, including biological processes. 

‘‘(4) SELECTION AND DURATION.—

‘‘(A) IN GENERAL.—A center under this subsection shall 

be selected on a competitive basis for a period of 5 years. 

‘‘(B) REAPPLICATION.—After the end of the period described in subparagraph (A), a grantee may reapply for selection on a competitive basis. 

‘‘(5) INCLUSION.—A center that is in existence on the date of 

enactment of this subsection—

‘‘(A) shall be counted towards the requirement for establishment of at least 7 bioenergy research centers; and 

‘‘(B) may continue to receive support for a period of 5 

years beginning on the date of establishment of the center.’’. 

SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT 

PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish a competitive 

grant program, in a geographically diverse manner, for projects 

submitted for consideration by institutions of higher education to 


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conduct research and development of renewable energy technologies. Each grant made shall not exceed $2,000,000. 

(b) ELIGIBILITY.—Priority shall be given to institutions of higher 

education with— (1) established programs of research in renewable energy; 

(2) locations that are low income or outside of an urbanized 

area; 

(3) a joint venture with an Indian tribe; and 

(4) proximity to trees dying of disease or insect infestation as 

a source of woody biomass. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary $25,000,000 for carrying out this 

section. 

(d) DEFINITIONS.—In this section: 

(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 

as defined in section 126(c) of the Energy Policy Act of 2005. 

(2) RENEWABLE ENERGY.—The term ‘‘renewable energy’’ has 

the meaning as defined in section 902 of the Energy Policy Act 

of 2005. 

(3) URBANIZED AREA.—The term ‘‘urbanized area’’ has the 

mean as defined by the U.S. Bureau of the Census. 

Subtitle C—Biofuels Infrastructure 

SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS 

RELATED TO RENEWABLE FUEL INFRASTRUCTURE. 

(a) IN GENERAL.—Title I of the Petroleum Marketing Practices 

Act (15 U.S.C. 2801 et seq.) is amended by adding at the end the 

following: 

‘‘SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE FUEL PUMPS. 

‘‘(a) DEFINITION.—In this section: ‘‘(1) RENEWABLE FUEL.—The term ‘renewable fuel’ means any 

fuel— ‘‘(A) at least 85 percent of the volume of which consists 

of ethanol; or ‘‘(B) any mixture of biodiesel and diesel or renewable 

diesel (as defined in regulations adopted pursuant to section 211(o) of the Clean Air Act (40 CFR, Part 80)), determined without regard to any use of kerosene and containing at least 20 percent biodiesel or renewable diesel. ‘‘(2) FRANCHISE-RELATED DOCUMENT.—The term ‘franchise-related document’ means— ‘‘(A) a franchise under this Act; and 

‘‘(B) any other contract or directive of a franchisor relating to terms or conditions of the sale of fuel by a 

franchisee. ‘‘(b) PROHIBITIONS.— ‘‘(1) IN GENERAL.—No franchise-related document entered 

into or renewed on or after the date of enactment of this section shall contain any provision allowing a franchisor to restrict the franchisee or any affiliate of the franchisee from— ‘‘(A) installing on the marketing premises of the 

franchisee a renewable fuel pump or tank, except that the 

franchisee’s franchisor may restrict the installation of a 

tank on leased marketing premises of such franchisor; 


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‘‘(B) converting an existing tank or pump on the marketing premises of the franchisee for renewable fuel use, so 

long as such tank or pump and the piping connecting them 

are either warranted by the manufacturer or certified by 

a recognized standards setting organization to be suitable 

for use with such renewable fuel; ‘‘(C) advertising (including through the use of signage) 

the sale of any renewable fuel; ‘‘(D) selling renewable fuel in any specified area on the 

marketing premises of the franchisee (including any area 

in which a name or logo of a franchisor or any other entity 

appears); ‘‘(E) purchasing renewable fuel from sources other than 

the franchisor if the franchisor does not offer its own renewable fuel for sale by the franchisee; ‘‘(F) listing renewable fuel availability or prices, including on service station signs, fuel dispensers, or light poles; 

or ‘‘(G) allowing for payment of renewable fuel with a credit 

card, 

so long as such activities described in subparagraphs (A) 

through (G) do not constitute mislabeling, misbranding, willful 

adulteration, or other trademark violations by the franchisee. ‘‘(2) EFFECT OF PROVISION.—Nothing in this section shall be 

construed to preclude a franchisor from requiring the 

franchisee to obtain reasonable indemnification and insurance 

policies. ‘‘(c) EXCEPTION TO 3-GRADE REQUIREMENT.—No franchise-related 

document that requires that 3 grades of gasoline be sold by the applicable franchisee shall prevent the franchisee from selling an renewable fuel in lieu of 1, and only 1, grade of gasoline.’’. (b) ENFORCEMENT.—Section 105 of the Petroleum Marketing 

Practices Act (15 U.S.C. 2805) is amended by striking ‘‘102 or 103’’ each place it appears and inserting ‘‘102, 103, or 107’’. (c) CONFORMING AMENDMENTS.— (1) IN GENERAL.—Section 101(13) of the Petroleum Marketing Practices Act (15 U.S.C. 2801(13)) is amended by aligning the margin of subparagraph (C) with subparagraph (B). 

(2) TABLE OF CONTENTS.—The table of contents of the Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is amended—

(A) by inserting after the item relating to section 106 the 

following: ‘‘Sec. 107. Prohibition on restriction of installation of renewable fuel pumps.’’; and 

(B) by striking the item relating to section 202 and inserting the following: 

‘‘Sec. 202. Automotive fuel rating testing and disclosure requirements.’’. 

SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS. 

(a) MARKET PENETRATION REPORTS.—The Secretary, in consultation with the Secretary of Transportation, shall determine and report to Congress annually on the market penetration for flexiblefuel vehicles in use within geographic regions to be established by 

the Secretary. 

(b) DISPENSER FEASIBILITY STUDY.—Not later than 24 months 

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tion with the Department of Transportation, shall report to the 

Congress on the feasibility of requiring motor fuel retailers to install E–85 compatible dispensers and related systems at retail fuel 

facilities in regions where flexible-fuel vehicle market penetration 

has reached 15 percent of motor vehicles. In conducting such study, 

the Secretary shall consider and report on the following factors: 

(1) The commercial availability of E–85 fuel and the number 

of competing E–85 wholesale suppliers in a given region. 

(2) The level of financial assistance provided on an annual 

basis by the Federal Government, State governments, and nonprofit entities for the installation of E–85 compatible infrastructure. 

(3) The number of retailers whose retail locations are unable 

to support more than 2 underground storage tank dispensers. 

(4) The expense incurred by retailers in the installation and 

sale of E–85 compatible dispensers and related systems and 

any potential effects on the price of motor vehicle fuel. 

SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY. 

(a) IN GENERAL.—The Secretary, in coordination with the Secretary of Transportation, shall conduct a study of the feasibility of 

the construction of pipelines dedicated to the transportation of ethanol. 

(b) FACTORS FOR CONSIDERATION.—In conducting the study under 

subsection (a), the Secretary shall take into consideration—

(1) the quantity of ethanol production that would make dedicated pipelines economically viable; 

(2) existing or potential barriers to the construction of pipelines dedicated to the transportation of ethanol, including technical, siting, financing, and regulatory barriers; 

(3) market risk (including throughput risk) and means of 

mitigating the risk; 

(4) regulatory, financing, and siting options that would mitigate the risk and help ensure the construction of 1 or more 

pipelines dedicated to the transportation of ethanol; 

(5) financial incentives that may be necessary for the construction of pipelines dedicated to the transportation of ethanol, including the return on equity that sponsors of the initial 

dedicated ethanol pipelines will require to invest in the pipelines; 

(6) technical factors that may compromise the safe transportation of ethanol in pipelines, including identification of remedial and preventive measures to ensure pipeline integrity; and 

(7) such other factors as the Secretary considers to be appropriate. 

(c) REPORT.—Not later than 15 months after the date of enactment of this Act, the Secretary shall submit to Congress a report 

describing the results of the study conducted under this section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary to carry out this section 

$1,000,000 for each of fiscal years 2008 and 2009, to remain available until expended. 

SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS. 

(a) DEFINITION OF RENEWABLE FUEL BLEND.—For purposes of 

this section, the term ‘‘renewable fuel blend’’ means gasoline blend 


hmoore on PRODPC68 with HMRPT
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that contain not less than 11 percent, and not more than 85 percent, renewable fuel or diesel fuel that contains at least 10 percent 

renewable fuel. 

(b) INFRASTRUCTURE DEVELOPMENT GRANTS.— (1) ESTABLISHMENT.—The Secretary shall establish a program for making grants for providing assistance to retail and 

wholesale motor fuel dealers or other entities for the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure to be used exclusively to store and dispense renewable fuel blends. 

(2) SELECTION CRITERIA.—Not later than 12 months after the 

date of enactment of this Act, the Secretary shall establish criteria for evaluating applications for grants under this subsection that will maximize the availability and use of renewable fuel blends, and that will ensure that renewable fuel 

blends are available across the country. Such criteria shall provide for—

(A) consideration of the public demand for each renewable fuel blend in a particular geographic area based on 

State registration records showing the number of flexiblefuel vehicles; 

(B) consideration of the opportunity to create or expand 

corridors of renewable fuel blend stations along interstate 

or State highways; 

(C) consideration of the experience of each applicant 

with previous, similar projects; 

(D) consideration of population, number of flexible-fuel 

vehicles, number of retail fuel outlets, and saturation of 

flexible-fuel vehicles; and 

(E) priority consideration to applications that— (i) are most likely to maximize displacement of petroleum consumption, measured as a total quantity 

and a percentage; 

(ii) are best able to incorporate existing infrastructure while maximizing, to the extent practicable, the 

use of renewable fuel blends; and 

(iii) demonstrate the greatest commitment on the 

part of the applicant to ensure funding for the proposed project and the greatest likelihood that the 

project will be maintained or expanded after Federal 

assistance under this subsection is completed. 

(3) LIMITATIONS.—Assistance provided under this subsection 

shall not exceed—

(A) 33 percent of the estimated cost of the installation, 

replacement, or conversion of motor fuel storage and dispensing infrastructure; or 

(B) $180,000 for a combination of equipment at any one 

retail outlet location. 

(4) OPERATION OF RENEWABLE FUEL BLEND STATIONS.—The 

Secretary shall establish rules that set forth requirements for 

grant recipients under this section that include providing to 

the public the renewable fuel blends, establishing a marketing 

plan that informs consumers of the price and availability of the 

renewable fuel blends, clearly labeling the dispensers and related equipment, and providing periodic reports on the status 


hmoore on PRODPC68 with HMRPT
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of the renewable fuel blend sales, the type and amount of the 

renewable fuel blends dispensed at each location, and the average price of such fuel. 

(5) NOTIFICATION REQUIREMENTS.—Not later than the date 

on which each renewable fuel blend station begins to offer renewable fuel blends to the public, the grant recipient that used 

grant funds to construct or upgrade such station shall notify 

the Secretary of such opening. The Secretary shall add each 

new renewable fuel blend station to the renewable fuel blend 

station locator on its Website when it receives notification 

under this subsection. 

(6) DOUBLE COUNTING.—No person that receives a credit 

under section 30C of the Internal Revenue Code of 1986 may 

receive assistance under this section. 

(7) RESERVATION OF FUNDS.—The Secretary shall reserve 

funds appropriated for the renewable fuel blends infrastructure 

development grant program for technical and marketing assistance described in subsection (c). 

(c) RETAIL TECHNICAL AND MARKETING ASSISTANCE.—The Secretary shall enter into contracts with entities with demonstrated 

experience in assisting retail fueling stations in installing refueling 

systems and marketing renewable fuel blends nationally, for the 

provision of technical and marketing assistance to recipients of 

grants under this section. Such assistance shall include—

(1) technical advice for compliance with applicable Federal 

and State environmental requirements; 

(2) help in identifying supply sources and securing long-term 

contracts; and 

(3) provision of public outreach, education, and labeling materials. 

(d) REFUELING INFRASTRUCTURE CORRIDORS.— (1) IN GENERAL.—The Secretary shall establish a competitive 

grant pilot program (referred to in this subsection as the ‘‘pilot 

program’’), to be administered through the Vehicle Technology 

Deployment Program of the Department, to provide not more 

than 10 geographically-dispersed project grants to State governments, Indian tribal governments, local governments, metropolitan transportation authorities, or partnerships of those 

entities to carry out 1 or more projects for the purposes described in paragraph (2). 

(2) GRANT PURPOSES.—A grant under this subsection shall be 

used for the establishment of refueling infrastructure corridors, 

as designated by the Secretary, for renewable fuel blends, including—

(A) installation of infrastructure and equipment necessary to ensure adequate distribution of renewable fuel 

blends within the corridor; 

(B) installation of infrastructure and equipment necessary to directly support vehicles powered by renewable 

fuel blends; and 

(C) operation and maintenance of infrastructure and 

equipment installed as part of a project funded by the 

grant. 

(3) APPLICATIONS.—

(A) REQUIREMENTS.—


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(i) IN GENERAL.—Subject to clause (ii), not later than 

90 days after the date of enactment of this Act, the 

Secretary shall issue requirements for use in applying 

for grants under the pilot program. 

(ii) MINIMUM REQUIREMENTS.—At a minimum, the 

Secretary shall require that an application for a grant 

under this subsection— (I) be submitted by— (aa) the head of a State, tribal, or local government or a metropolitan transportation authority, or any combination of those entities; 

and 

(bb) a registered participant in the Vehicle 

Technology Deployment Program of the Department; and 

(II) include— (aa) a description of the project proposed in 

the application, including the ways in which 

the project meets the requirements of this 

subsection; 

(bb) an estimate of the degree of use of the 

project, including the estimated size of fleet of 

vehicles operated with renewable fuels blend 

available within the geographic region of the 

corridor, measured as a total quantity and a 

percentage; 

(cc) an estimate of the potential petroleum 

displaced as a result of the project (measured 

as a total quantity and a percentage), and a 

plan to collect and disseminate petroleum displacement and other relevant data relating to 

the project to be funded under the grant, over 

the expected life of the project; 

(dd) a description of the means by which 

the project will be sustainable without Federal assistance after the completion of the 

term of the grant; 

(ee) a complete description of the costs of 

the project, including acquisition, construction, operation, and maintenance costs over 

the expected life of the project; and 

(ff) a description of which costs of the 

project will be supported by Federal assistance under this subsection. 

(B) PARTNERS.—An applicant under subparagraph (A) 

may carry out a project under the pilot program in partnership with public and private entities. 

(4) SELECTION CRITERIA.—In evaluating applications under 

the pilot program, the Secretary shall—

(A) consider the experience of each applicant with previous, similar projects; and 

(B) give priority consideration to applications that—

(i) are most likely to maximize displacement of petroleum consumption, measured as a total quantity 

and a percentage; 


hmoore on PRODPC68 with HMRPT
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(ii) are best able to incorporate existing infrastructure while maximizing, to the extent practicable, the 

use of advanced biofuels; 

(iii) demonstrate the greatest commitment on the 

part of the applicant to ensure funding for the proposed project and the greatest likelihood that the 

project will be maintained or expanded after Federal 

assistance under this subsection is completed; 

(iv) represent a partnership of public and private entities; and 

(v) exceed the minimum requirements of paragraph 

(3)(A)(ii). 

(5) PILOT PROJECT REQUIREMENTS.—

(A) MAXIMUM AMOUNT.—The Secretary shall provide not 

more than $20,000,000 in Federal assistance under the 

pilot program to any applicant. 

(B) COST SHARING.—The non-Federal share of the cost of 

any activity relating to renewable fuel blend infrastructure 

development carried out using funds from a grant under 

this subsection shall be not less than 20 percent. 

(C) MAXIMUM PERIOD OF GRANTS.—The Secretary shall 

not provide funds to any applicant under the pilot program 

for more than 2 years. 

(D) DEPLOYMENT AND DISTRIBUTION.—The Secretary 

shall seek, to the maximum extent practicable, to ensure 

a broad geographic distribution of project sites funded by 

grants under this subsection. 

(E) TRANSFER OF INFORMATION AND KNOWLEDGE.—The 

Secretary shall establish mechanisms to ensure that the 

information and knowledge gained by participants in the 

pilot program are transferred among the pilot program 

participants and to other interested parties, including 

other applicants that submitted applications. 

(6) SCHEDULE.—

(A) INITIAL GRANTS.— (i) IN GENERAL.—Not later than 90 days after the 

date of enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business 

Daily, and such other publications as the Secretary 

considers to be appropriate, a notice and request for 

applications to carry out projects under the pilot program. 

(ii) DEADLINE.—An application described in clause 

(i) shall be submitted to the Secretary by not later 

than 180 days after the date of publication of the notice under that clause. 

(iii) INITIAL SELECTION.—Not later than 90 days 

after the date by which applications for grants are due 

under clause (ii), the Secretary shall select by competitive, peer-reviewed proposal up to 5 applications for 

projects to be awarded a grant under the pilot program. 

(B) ADDITIONAL GRANTS.—

(i) IN GENERAL.—Not later than 2 years after the 

date of enactment of this Act, the Secretary shall pubVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00060 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

hmoore on PRODPC68 with HMRPT
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lish in the Federal Register, Commerce Business 

Daily, and such other publications as the Secretary 

considers to be appropriate, a notice and request for 

additional applications to carry out projects under the 

pilot program that incorporate the information and 

knowledge obtained through the implementation of the 

first round of projects authorized under the pilot program. 

(ii) DEADLINE.—An application described in clause 

(i) shall be submitted to the Secretary by not later 

than 180 days after the date of publication of the notice under that clause. 

(iii) INITIAL SELECTION.—Not later than 90 days 

after the date by which applications for grants are due 

under clause (ii), the Secretary shall select by competitive, peer-reviewed proposal such additional applications for projects to be awarded a grant under the 

pilot program as the Secretary determines to be appropriate. 

(7) REPORTS TO CONGRESS.—

(A) INITIAL REPORT.—Not later than 60 days after the 

date on which grants are awarded under this subsection, 

the Secretary shall submit to Congress a report containing—

(i) an identification of the grant recipients and a description of the projects to be funded under the pilot 

program; 

(ii) an identification of other applicants that submitted applications for the pilot program but to which 

funding was not provided; and 

(iii) a description of the mechanisms used by the 

Secretary to ensure that the information and knowledge gained by participants in the pilot program are 

transferred among the pilot program participants and 

to other interested parties, including other applicants 

that submitted applications. 

(B) EVALUATION.—Not later than 2 years after the date 

of enactment of this Act, and annually thereafter until the 

termination of the pilot program, the Secretary shall submit to Congress a report containing an evaluation of the 

effectiveness of the pilot program, including an assessment 

of the petroleum displacement and benefits to the environment derived from the projects included in the pilot program. 

(e) RESTRICTION.—No grant shall be provided under subsection 

(b) or (c) to a large, vertically integrated oil company. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for carrying out this section 

$200,000,000 for each of the fiscal years 2008 through 2014. 

SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-PRODUCED RENEWABLE FUEL BY RAILROADS 

AND OTHER MODES OF TRANSPORTATION. 

(a) STUDY.—

(1) IN GENERAL.—The Secretary, in coordination with the 

Secretary of Transportation, shall jointly conduct a study of the 


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adequacy of transportation of domestically-produced renewable 

fuels by railroad and other modes of transportation as designated by the Secretaries. 

(2) COMPONENTS.—In conducting the study under paragraph 

(1), the Secretaries shall—

(A) consider the adequacy of existing railroad and other 

transportation and distribution infrastructure, equipment, 

service and capacity to move the necessary quantities of 

domestically-produced renewable fuel within the timeframes; 

(B)(i) consider the projected costs of moving the domestically-produced renewable fuel by railroad and other modes 

transportation; and 

(ii) consider the impact of the projected costs on the marketability of the domestically-produced renewable fuel; 

(C) identify current and potential impediments to the reliable transportation and distribution of adequate supplies 

of domestically-produced renewable fuel at reasonable 

prices, including practices currently utilized by domestic 

producers, shippers, and receivers of renewable fuels; 

(D) consider whether adequate competition exists within 

and between modes of transportation for the transportation and distribution of domestically-produced renewable 

fuel and, whether inadequate competition leads to an unfair price for the transportation and distribution of domestically-produced renewable fuel or unacceptable service for 

transportation of domestically-produced renewable fuel; 

(E) consider whether Federal agencies have adequate 

legal authority to address instances of inadequate competition when inadequate competition is found to prevent domestic producers for renewable fuels from obtaining a fair 

and reasonable transportation price or acceptable service 

for the transportation and distribution of domestically-produced renewable fuels; 

(F) consider whether Federal agencies have adequate 

legal authority to address railroad and transportation 

service problems that may be resulting in inadequate supplies of domestically-produced renewable fuel in any area 

of the United States; 

(G) consider what transportation infrastructure capital 

expenditures may be necessary to ensure the reliable 

transportation of adequate supplies of domestically-produced renewable fuel at reasonable prices within the 

United States and which public and private entities should 

be responsible for making such expenditures; and 

(H) provide recommendations on ways to facilitate the 

reliable transportation of adequate supplies of domestically-produced renewable fuel at reasonable prices. 

(b) REPORT.—Not later than 180 days after the date of enactment 

of this Act, the Secretaries shall jointly submit to the Committee 

on Commerce, Science and Transportation, the Committee on Energy and Natural Resources, and the Committee on Environment 

and Public Works of the Senate and the Committee on Transportation and Infrastructure and the Committee on Energy and ComVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00062 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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merce of the House of Representatives a report that describes the 

results of the study conducted under subsection (a). 

SEC. 246. FEDERAL FLEET FUELING CENTERS. 

(a) IN GENERAL.—Not later than January 1, 2010, the head of 

each Federal agency shall install at least 1 renewable fuel pump 

at each Federal fleet fueling center in the United States under the 

jurisdiction of the head of the Federal agency. 

(b) REPORT.—Not later than October 31 of the first calendar year 

beginning after the date of the enactment of this Act, and each October 31 thereafter, the President shall submit to Congress a report 

that describes the progress toward complying with subsection (a), 

including identifying—

(1) the number of Federal fleet fueling centers that contain 

at least 1 renewable fuel pump; and 

(2) the number of Federal fleet fueling centers that do not 

contain any renewable fuel pumps. 

(c) DEPARTMENT OF DEFENSE FACILITY.—This section shall not 

apply to a Department of Defense fueling center with a fuel turnover rate of less than 100,000 gallons of fuel per year. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section. 

SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL. 

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 

redesignating subsection (s) as subsection (t), redesignating subsection (r) (relating to conversion assistance for cellulosic biomass, 

waste-derived ethanol, approved renewable fuels) as subsection (s) 

and by adding the following new subsection at the end thereof: 

‘‘(u) STANDARD SPECIFICATIONS FOR BIODIESEL.—(1) Unless the 

American Society for Testing and Materials has adopted a standard 

for diesel fuel containing 20 percent biodiesel (commonly known as 

‘B20’) within 1 year after the date of enactment of this subsection, 

the Administrator shall initiate a rulemaking to establish a uniform per gallon fuel standard for such fuel and designate an identification number so that vehicle manufacturers are able to design 

engines to use fuel meeting such standard. 

‘‘(2) Unless the American Society for Testing and Materials has 

adopted a standard for diesel fuel containing 5 percent biodiesel 

(commonly known as ‘B5’) within 1 year after the date of enactment of this subsection, the Administrator shall initiate a rulemaking to establish a uniform per gallon fuel standard for such 

fuel and designate an identification so that vehicle manufacturers 

are able to design engines to use fuel meeting such standard. 

‘‘(3) Whenever the Administrator is required to initiate a rulemaking under paragraph (1) or (2), the Administrator shall promulgate a final rule within 18 months after the date of the enactment 

of this subsection. 

‘‘(4) Not later than 180 days after the enactment of this subsection, the Administrator shall establish an annual inspection and 

enforcement program to ensure that diesel fuel containing biodiesel 

sold or distributed in interstate commerce meets the standards established under regulations under this section, including testing 

and certification for compliance with applicable standards of the 

American Society for Testing and Materials. There are authorized 


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to be appropriated to carry out the inspection and enforcement program under this paragraph $3,000,000 for each of fiscal years 2008 

through 2010. 

‘‘(5) For purposes of this subsection, the term ‘biodiesel’ has the 

meaning provided by section 312(f) of Energy Policy Act of 1992 (42 

U.S.C. 13220(f)).’’. 

SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE. 

(a) IN GENERAL.—The Secretary, in coordination with the Secretary of Transportation and in consultation with the Administrator of the Environmental Protection Agency, shall carry out a 

program of research, development, and demonstration relating to 

existing transportation fuel distribution infrastructure and new alternative distribution infrastructure. 

(b) FOCUS.—The program described in subsection (a) shall focus 

on the physical and chemical properties of biofuels and efforts to 

prevent or mitigate against adverse impacts of those properties in 

the areas of—

(1) corrosion of metal, plastic, rubber, cork, fiberglass, glues, 

or any other material used in pipes and storage tanks; 

(2) dissolving of storage tank sediments; 

(3) clogging of filters; 

(4) contamination from water or other adulterants or pollutants; 

(5) poor flow properties related to low temperatures; 

(6) oxidative and thermal instability in long-term storage 

and uses; 

(7) microbial contamination; 

(8) problems associated with electrical conductivity; and 

(9) such other areas as the Secretary considers appropriate. 

Subtitle D—Environmental Safeguards 

SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES. 

Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is 

amended to read as follows: 

‘‘(4) The Administrator, upon application of any manufacturer of 

any fuel or fuel additive, may waive the prohibitions established 

under paragraph (1) or (3) of this subsection or the limitation specified in paragraph (2) of this subsection, if he determines that the 

applicant has established that such fuel or fuel additive or a specified concentration thereof, and the emission products of such fuel 

or fuel additive or specified concentration thereof, will not cause or 

contribute to a failure of any emission control device or system 

(over the useful life of the motor vehicle, motor vehicle engine, 

nonroad engine or nonroad vehicle in which such device or system 

is used) to achieve compliance by the vehicle or engine with the 

emission standards with respect to which it has been certified pursuant to sections 206 and 213(a). The Administrator shall take 

final action to grant or deny an application submitted under this 

paragraph, after public notice and comment, within 270 days of the 

receipt of such an application.’’. 


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TITLE III—ENERGY SAVINGS THROUGH IMPROVED 

STANDARDS FOR APPLIANCE AND LIGHTING 

Subtitle A—Appliance Energy Efficiency 

SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS. 

(a) DEFINITIONS.—Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended—

(1) in paragraph (36)—

(A) by striking ‘‘(36) The’’ and inserting the following: 

‘‘(36) EXTERNAL POWER SUPPLY.—

‘‘(A) IN GENERAL.—The’’; and 

(B) by adding at the end the following: 

‘‘(B) ACTIVE MODE.—The term ‘active mode’ means the 

mode of operation when an external power supply is connected to the main electricity supply and the output is connected to a load. 

‘‘(C) CLASS A EXTERNAL POWER SUPPLY.—

‘‘(i) IN GENERAL.—The term ‘class A external power 

supply’ means a device that—

‘‘(I) is designed to convert line voltage AC input 

into lower voltage AC or DC output; 

‘‘(II) is able to convert to only 1 AC or DC output voltage at a time; 

‘‘(III) is sold with, or intended to be used with, 

a separate end-use product that constitutes the 

primary load; 

‘‘(IV) is contained in a separate physical enclosure from the end-use product; 

‘‘(V) is connected to the end-use product via a 

removable or hard-wired male/female electrical 

connection, cable, cord, or other wiring; and 

‘‘(VI) has nameplate output power that is less 

than or equal to 250 watts. 

‘‘(ii) EXCLUSIONS.—The term ‘class A external power 

supply’ does not include any device that—

‘‘(I) requires Federal Food and Drug Administration listing and approval as a medical device in 

accordance with section 513 of the Federal Food, 

Drug, and Cosmetic Act (21 U.S.C. 360c); or 

‘‘(II) powers the charger of a detachable battery 

pack or charges the battery of a product that is 

fully or primarily motor operated. 

‘‘(D) NO-LOAD MODE.—The term ‘no-load mode’ means 

the mode of operation when an external power supply is 

connected to the main electricity supply and the output is 

not connected to a load.’’; and 

(2) by adding at the end the following: 

‘‘(52) DETACHABLE BATTERY.—The term ‘detachable battery’

means a battery that is—

‘‘(A) contained in a separate enclosure from the product; 

and 

‘‘(B) intended to be removed or disconnected from the 

product for recharging.’’. 


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(b) TEST PROCEDURES.—Section 323(b) of the Energy Policy and 

Conservation Act (42 U.S.C. 6293(b)) is amended by adding at the 

end the following: ‘‘(17) CLASS A EXTERNAL POWER SUPPLIES.—Test procedures 

for class A external power supplies shall be based on the ‘Test 

Method for Calculating the Energy Efficiency of Single-Voltage 

External AC–DC and AC–AC Power Supplies’ published by the 

Environmental Protection Agency on August 11, 2004, except 

that the test voltage specified in section 4(d) of that test method shall be only 115 volts, 60 Hz.’’. (c) EFFICIENCY STANDARDS FOR CLASS A EXTERNAL POWER SUPPLIES.—Section 325(u) of the Energy Policy and Conservation Act 

(42 U.S.C. 6295(u)) is amended by adding at the end the following: 

‘‘(6) EFFICIENCY STANDARDS FOR CLASS A EXTERNAL POWER

SUPPLIES.—

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) through 

(D), a class A external power supply manufactured on or 

after the later of July 1, 2008, or the date of enactment of 

this paragraph shall meet the following standards: 


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‘‘Active Mode 

‘‘Nameplate Output Required Efficiency (decimal equivalent of a percentage) 

Less than 1 watt 0.5 times the Nameplate Output 

From 1 watt to not more than 51 watts The sum of 0.09 times the Natural Logarithm of the 

Nameplate Output and 0.5 

Greater than 51 watts 0.85 

‘‘No-Load Mode 

‘‘Nameplate Output Maximum Consumption 

Not more than 250 watts 0.5 watts 


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‘‘(B) NONCOVERED SUPPLIES.—A class A external power 

supply shall not be subject to subparagraph (A) if the class 

A external power supply is—

‘‘(i) manufactured during the period beginning on 

July 1, 2008, and ending on June 30, 2015; and 

‘‘(ii) made available by the manufacturer as a service part or a spare part for an end-use product—

‘‘(I) that constitutes the primary load; and 

‘‘(II) was manufactured before July 1, 2008. 

‘‘(C) MARKING.—Any class A external power supply manufactured on or after the later of July 1, 2008 or the date 

of enactment of this paragraph shall be clearly and permanently marked in accordance with the External Power 

Supply International Efficiency Marking Protocol, as referenced in the ‘Energy Star Program Requirements for 

Single Voltage External AC-DC and AC-AC Power Supplies, version 1.1’ published by the Environmental Protection Agency. 

‘‘(D) AMENDMENT OF STANDARDS.—

‘‘(i) FINAL RULE BY JULY 1, 2011.—

‘‘(I) IN GENERAL.—Not later than July 1, 2011, 

the Secretary shall publish a final rule to determine whether the standards established under 

subparagraph (A) should be amended. 

‘‘(II) ADMINISTRATION.—The final rule shall—

‘‘(aa) contain any amended standards; and 

‘‘(bb) apply to products manufactured on or 

after July 1, 2013. 

‘‘(ii) FINAL RULE BY JULY 1, 2015.—

‘‘(I) IN GENERAL.—Not later than July 1, 2015 

the Secretary shall publish a final rule to determine whether the standards then in effect should 

be amended. 

‘‘(II) ADMINISTRATION.—The final rule shall—

‘‘(aa) contain any amended standards; and 

‘‘(bb) apply to products manufactured on or 

after July 1, 2017. 

‘‘(7) END-USE PRODUCTS.—An energy conservation standard 

for external power supplies shall not constitute an energy conservation standard for the separate end-use product to which 

the external power supplies is connected.’’. 

SEC. 302. UPDATING APPLIANCE TEST PROCEDURES. 

(a) CONSUMER APPLIANCES.—Section 323(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended by 

striking ‘‘(1)’’ and all that follows through the end of the paragraph 

and inserting the following: 

‘‘(1) TEST PROCEDURES.—

‘‘(A) AMENDMENT.—At least once every 7 years, the Secretary shall review test procedures for all covered products 

and—

‘‘(i) amend test procedures with respect to any covered product, if the Secretary determines that amended test procedures would more accurately or fully comply with the requirements of paragraph (3); or 


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‘‘(ii) publish notice in the Federal Register of any determination not to amend a test procedure.’’. 

(b) INDUSTRIAL EQUIPMENT.—Section 343(a) of the Energy Policy 

and Conservation Act (42 U.S.C. 6313(a)) is amended by striking 

‘‘(a)’’ and all that follows through the end of paragraph (1) and inserting the following: 

‘‘(a) PRESCRIPTION BY SECRETARY; REQUIREMENTS.—

‘‘(1) TEST PROCEDURES.—

‘‘(A) AMENDMENT.—At least once every 7 years, the Secretary shall conduct an evaluation of each class of covered 

equipment and—

‘‘(i) if the Secretary determines that amended test 

procedures would more accurately or fully comply with 

the requirements of paragraphs (2) and (3), shall prescribe test procedures for the class in accordance with 

this section; or 

‘‘(ii) shall publish notice in the Federal Register of 

any determination not to amend a test procedure.’’. 

SEC. 303. RESIDENTIAL BOILERS. 

Section 325(f) of the Energy Policy and Conservation Act (42 

U.S.C. 6295(f)) is amended—

(1) in the subsection heading, by inserting ‘‘AND BOILERS’’

after ‘‘FURNACES’’; 

(2) by redesignating paragraph (3) as paragraph (4); and 

(3) by inserting after paragraph (2) the following: 

‘‘(3) BOILERS.—

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and (C), 

boilers manufactured on or after September 1, 2012, shall 

meet the following requirements: 

Boiler Type 

Minimum Annual 

Fuel Utilization Efficiency 

Design Requirements 

Gas Hot Water ......... 82% No Constant Burning Pilot, Automatic 

Means for Adjusting 

Water Temperature 

Gas Steam ............... 80% No Constant Burning Pilot 

Oil Hot Water ........... 84% Automatic Means 

for Adjusting Temperature 


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Boiler Type 

Minimum Annual 

Fuel Utilization Efficiency 

Design Requirements 

Oil Steam ................ 82% None 

Electric Hot Water ... None Automatic Means 

for Adjusting Temperature 

Electric Steam .......... None None 

‘‘(B) AUTOMATIC MEANS FOR ADJUSTING WATER TEMPERATURE.—

‘‘(i) IN GENERAL.—The manufacturer shall equip 

each gas, oil, and electric hot water boiler (other than 

a boiler equipped with a tankless domestic water heating coil) with automatic means for adjusting the temperature of the water supplied by the boiler to ensure 

that an incremental change in inferred heat load produces a corresponding incremental change in the temperature of water supplied. 

‘‘(ii) SINGLE INPUT RATE.—For a boiler that fires at 

1 input rate, the requirements of this subparagraph 

may be satisfied by providing an automatic means 

that allows the burner or heating element to fire only 

when the means has determined that the inferred 

heat load cannot be met by the residual heat of the 

water in the system. 

‘‘(iii) NO INFERRED HEAT LOAD.—When there is no 

inferred heat load with respect to a hot water boiler, 

the automatic means described in clause (i) and (ii) 

shall limit the temperature of the water in the boiler 

to not more than 140 degrees Fahrenheit. 

‘‘(iv) OPERATION.—A boiler described in clause (i) or 

(ii) shall be operable only when the automatic means 

described in clauses (i), (ii), and (iii) is installed. 

‘‘(C) EXCEPTION.—A boiler that is manufactured to operate without any need for electricity or any electric connection, electric gauges, electric pumps, electric wires, or electric devices shall not be required to meet the requirements 

of this paragraph.’’. 

SEC. 304. FURNACE FAN STANDARD PROCESS. 

Paragraph (4)(D) of section 325(f) of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)) (as redesignated by section 303(4)) 

is amended by striking ‘‘the Secretary may’’ and inserting ‘‘not 

later than December 31, 2013, the Secretary shall’’. 


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SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND 

CLARIFYING STATE AUTHORITY. 

(a) CONSUMER APPLIANCES.—Section 325 of the Energy Policy 

and Conservation Act (42 U.S.C. 6295) is amended by striking subsection (m) and inserting the following: 

‘‘(m) AMENDMENT OF STANDARDS.—

‘‘(1) IN GENERAL.—Not later than 6 years after issuance of 

any final rule establishing or amending a standard, as required for a product under this part, the Secretary shall publish—

‘‘(A) a notice of the determination of the Secretary that 

standards for the product do not need to be amended, 

based on the criteria established under subsection (n)(2); 

or 

‘‘(B) a notice of proposed rulemaking including new proposed standards based on the criteria established under 

subsection (o) and the procedures established under subsection (p). 

‘‘(2) NOTICE.—If the Secretary publishes a notice under paragraph (1), the Secretary shall—

‘‘(A) publish a notice stating that the analysis of the Department is publicly available; and 

‘‘(B) provide an opportunity for written comment. 

‘‘(3) AMENDMENT OF STANDARD; NEW DETERMINATION.—

‘‘(A) AMENDMENT OF STANDARD.—Not later than 2 years 

after a notice is issued under paragraph (1)(B), the Secretary shall publish a final rule amending the standard for 

the product. 

‘‘(B) NEW DETERMINATION.—Not later than 3 years after 

a determination under paragraph (1)(A), the Secretary 

shall make a new determination and publication under 

subparagraph (A) or (B) of paragraph (1). 

‘‘(4) APPLICATION TO PRODUCTS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), an amendment prescribed under this subsection shall 

apply to—

‘‘(i) with respect to refrigerators, refrigerator-freezers, freezers, room air conditioners, dishwashers, 

clothes washers, clothes dryers, fluorescent lamp ballasts, and kitchen ranges and ovens, such a product 

that is manufactured after the date that is 3 years 

after publication of the final rule establishing an applicable standard; and 

‘‘(ii) with respect to central air conditioners, heat 

pumps, water heaters, pool heaters, direct heating 

equipment, and furnaces, such a product that is manufactured after the date that is 5 years after publication 

of the final rule establishing an applicable standard. 

‘‘(B) OTHER NEW STANDARDS.—A manufacturer shall not 

be required to apply new standards to a product with respect to which other new standards have been required 

during the prior 6-year period. 

‘‘(5) REPORTS.—The Secretary shall promptly submit to the 

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resentatives and the Committee on Energy and Natural Resources of the Senate— ‘‘(A) a progress report every 180 days on compliance with 

this section, including a specific plan to remedy any failures to comply with deadlines for action established under 

this section; and ‘‘(B) all required reports to the Court or to any party to 

the Consent Decree in State of New York v Bodman, Consolidated Civil Actions No.05 Civ. 7807 and No.05 Civ. 

7808.’’. (b) INDUSTRIAL EQUIPMENT.—Section 342(a)(6) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is amended— (1) by redesignating subparagraph (C) as subparagraph (D); 

and 

(2) by striking ‘‘(6)(A)(i)’’ and all that follows through the end 

of subparagraph (B) and inserting the following: ‘‘(6) AMENDED ENERGY EFFICIENCY STANDARDS.—

‘‘(A) IN GENERAL.— ‘‘(i) ANALYSIS OF POTENTIAL ENERGY SAVINGS.—If 

ASHRAE/IES Standard 90.1 is amended with respect 

to any small commercial package air conditioning and 

heating equipment, large commercial package air conditioning and heating equipment, very large commercial package air conditioning and heating equipment, 

packaged terminal air conditioners, packaged terminal 

heat pumps, warm-air furnaces, packaged boilers, 

storage water heaters, instantaneous water heaters, or 

unfired hot water storage tanks, not later than 180 

days after the amendment of the standard, the Secretary shall publish in the Federal Register for public 

comment an analysis of the energy savings potential of 

amended energy efficiency standards. 

‘‘(ii) AMENDED UNIFORM NATIONAL STANDARD FOR

PRODUCTS.—

‘‘(I) IN GENERAL.—Except as provided in subclause (II), not later than 18 months after the date 

of publication of the amendment to the ASHRAE/ 

IES Standard 90.1 for a product described in 

clause (i), the Secretary shall establish an amended uniform national standard for the product at 

the minimum level specified in the amended 

ASHRAE/IES Standard 90.1. ‘‘(II) MORE STRINGENT STANDARD.—Subclause (I) 

shall not apply if the Secretary determines, by 

rule published in the Federal Register, and supported by clear and convincing evidence, that 

adoption of a uniform national standard more 

stringent than the amended ASHRAE/IES Standard 90.1 for the product would result in significant 

additional conservation of energy and is technologically feasible and economically justified. ‘‘(B) RULE.—If the Secretary makes a determination described in clause (ii)(II) for a product described in clause 

(i), not later than 30 months after the date of publication 

of the amendment to the ASHRAE/IES Standard 90.1 for 


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the product, the Secretary shall issue the rule establishing 

the amended standard. ‘‘(C) AMENDMENT OF STANDARD.— ‘‘(i) IN GENERAL.—Not later than 6 years after 

issuance of any final rule establishing or amending a 

standard, as required for a product under this part, 

the Secretary shall publish— ‘‘(I) a notice of the determination of the Secretary that standards for the product do not need 

to be amended, based on the criteria established 

under subparagraph (A); or ‘‘(II) a notice of proposed rulemaking including 

new proposed standards based on the criteria and 

procedures established under subparagraph (B). ‘‘(ii) NOTICE.—If the Secretary publishes a notice 

under clause (i), the Secretary shall— ‘‘(I) publish a notice stating that the analysis of 

the Department is publicly available; and ‘‘(II) provide an opportunity for written comment. ‘‘(iii) AMENDMENT OF STANDARD; NEW DETERMINATION.—

‘‘(I) AMENDMENT OF STANDARD.—Not later than 

2 years after a notice is issued under clause (i)(II), 

the Secretary shall publish a final rule amending 

the standard for the product. 

‘‘(II) NEW DETERMINATION.—Not later than 3 

years after a determination under clause (i)(I), the 

Secretary shall make a new determination and 

publication under subclause (I) or (II) of clause (i). 

‘‘(iv) APPLICATION TO PRODUCTS.—An amendment 

prescribed under this subsection shall apply to products manufactured after a date that is the later of— ‘‘(I) the date that is 3 years after publication of 

the final rule establishing a new standard; or ‘‘(II) the date that is 6 years after the effective 

date of the current standard for a covered product. ‘‘(v) REPORTS.—The Secretary shall promptly submit 

to the Committee on Energy and Commerce of the 

House of Representatives and the Committee on Energy and Natural Resources of the Senate a progress 

report every 180 days on compliance with this subparagraph, including a specific plan to remedy any 

failures to comply with deadlines for action established under this subparagraph.’’. 

SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, AND HEAT PUMPS. 

(a) IN GENERAL.—Section 325(o) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)) is amended by adding at the end 

the following: 

‘‘(6) REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, AND HEAT PUMPS.—

‘‘(A) IN GENERAL.—In any rulemaking to establish a new 

or amended standard, the Secretary may consider the establishment of separate standards by geographic region for 


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furnaces (except boilers), central air conditioners, and heat 

pumps. ‘‘(B) NATIONAL AND REGIONAL STANDARDS.— ‘‘(i) NATIONAL STANDARD.—If the Secretary establishes a regional standard for a product, the Secretary 

shall establish a base national standard for the product. ‘‘(ii) REGIONAL STANDARDS.—If the Secretary establishes a regional standard for a product, the Secretary 

may establish more restrictive standards for the product by geographic region as follows: ‘‘(I) For furnaces, the Secretary may establish 1 

additional standard that is applicable in a geographic region defined by the Secretary. ‘‘(II) For any cooling product, the Secretary may 

establish 1 or 2 additional standards that are applicable in 1 or 2 geographic regions as may be defined by the Secretary. ‘‘(C) BOUNDARIES OF GEOGRAPHIC REGIONS.—

‘‘(i) IN GENERAL.—Subject to clause (ii), the boundaries of additional geographic regions established by 

the Secretary under this paragraph shall include only 

contiguous States. 

‘‘(ii) ALASKA AND HAWAII.—The States of Alaska and 

Hawaii may be included under this paragraph in a geographic region that the States are not contiguous to. ‘‘(iii) INDIVIDUAL STATES.—Individual States shall be 

placed only into a single region under this paragraph. ‘‘(D) PREREQUISITES.—In establishing additional regional 

standards under this paragraph, the Secretary shall—

‘‘(i) establish additional regional standards only if 

the Secretary determines that—

‘‘(I) the establishment of additional regional 

standards will produce significant energy savings 

in comparison to establishing only a single national standard; and ‘‘(II) the additional regional standards are economically justified under this paragraph; and ‘‘(ii) consider the impact of the additional regional 

standards on consumers, manufacturers, and other 

market participants, including product distributors, 

dealers, contractors, and installers. ‘‘(E) APPLICATION; EFFECTIVE DATE.—

‘‘(i) BASE NATIONAL STANDARD.—Any base national 

standard established for a product under this paragraph shall—

‘‘(I) be the minimum standard for the product; 

and 

‘‘(II) apply to all products manufactured or imported into the United States on and after the effective date for the standard. ‘‘(ii) REGIONAL STANDARDS.—Any additional and 

more restrictive regional standard established for a 

product under this paragraph shall apply to any such 

product installed on or after the effective date of the 


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standard in States in which the Secretary has designated the standard to apply. ‘‘(F) CONTINUATION OF REGIONAL STANDARDS.— ‘‘(i) IN GENERAL.—In any subsequent rulemaking for 

any product for which a regional standard has been 

previously established, the Secretary shall determine 

whether to continue the establishment of separate regional standards for the product. ‘‘(ii) REGIONAL STANDARD NO LONGER APPROPRIATE.— Except as provided in clause (iii), if the Secretary determines that regional standards are no longer appropriate for a product, beginning on the effective date of 

the amended standard for the product— ‘‘(I) there shall be 1 base national standard for 

the product with Federal enforcement; and ‘‘(II) State authority for enforcing a regional 

standard for the product shall terminate. ‘‘(iii) REGIONAL STANDARD APPROPRIATE BUT STANDARD OR REGION CHANGED.—

‘‘(I) STATE NO LONGER CONTAINED IN REGION.—

Subject to subclause (III), if a State is no longer 

contained in a region in which a regional standard 

that is more stringent than the base national 

standard applies, the authority of the State to enforce the regional standard shall terminate. 

‘‘(II) STANDARD OR REGION REVISED SO THAT EX- ISTING REGIONAL STANDARD EQUALS BASE NA- TIONAL STANDARD.—If the Secretary revises a base 

national standard for a product or the geographic 

definition of a region so that an existing regional 

standard for a State is equal to the revised base 

national standard— ‘‘(aa) the authority of the State to enforce 

the regional standard shall terminate on the 

effective date of the revised base national 

standard; and 

‘‘(bb) the State shall be subject to the revised base national standard. 

‘‘(III) STANDARD OR REGION REVISED SO THAT EX- ISTING REGIONAL STANDARD EQUALS BASE NATIONAL STANDARD.—If the Secretary revises a base 

national standard for a product or the geographic 

definition of a region so that the standard for a 

State is lower than the previously approved regional standard, the State may continue to enforce 

the previously approved standard level. 

‘‘(iv) WAIVER OF FEDERAL PREEMPTION.—Nothing in 

this paragraph diminishes the authority of a State to 

enforce a State regulation for which a waiver of Federal preemption has been granted under section 

327(d). ‘‘(G) ENFORCEMENT.— ‘‘(i) BASE NATIONAL STANDARD.—

‘‘(I) IN GENERAL.—The Secretary shall enforce 

any base national standard. 


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‘‘(II) TRADE ASSOCIATION CERTIFICATION PRO- GRAMS.—In enforcing the base national standard, 

the Secretary shall use, to the maximum extent 

practicable, national standard nationally recognized certification programs of trade associations. ‘‘(ii) REGIONAL STANDARDS.— ‘‘(I) ENFORCEMENT PLAN.—Not later than 90 

days after the date of the issuance of a final rule 

that establishes a regional standard, the Secretary 

shall initiate a rulemaking to develop and implement an effective enforcement plan for regional 

standards for the products that are covered by the 

final rule. ‘‘(II) RESPONSIBLE ENTITIES.—Any rules regarding enforcement of a regional standard shall clearly specify which entities are legally responsible for 

compliance with the standards and for making 

any required information or labeling disclosures. 

‘‘(III) FINAL RULE.—Not later than 15 months 

after the date of the issuance of a final rule that 

establishes a regional standard for a product, the 

Secretary shall promulgate a final rule covering 

enforcement of regional standards for the product. 

‘‘(IV) INCORPORATION BY STATES AND LOCAL- ITIES.—A State or locality may incorporate any 

Federal regional standard into State or local 

building codes or State appliance standards. ‘‘(V) STATE ENFORCEMENT.—A State agency may 

seek enforcement of a Federal regional standard 

in a Federal court of competent jurisdiction. ‘‘(H) INFORMATION DISCLOSURE.— ‘‘(i) IN GENERAL.—Not later than 90 days after the 

date of the publication of a final rule that establishes 

a regional standard for a product, the Federal Trade 

Commission shall undertake a rulemaking to determine the appropriate 1 or more methods for disclosing 

information so that consumers, distributors, contractors, and installers can easily determine whether a 

specific piece of equipment that is installed in a specific building is in conformance with the regional 

standard that applies to the building. ‘‘(ii) METHODS.—A method of disclosing information 

under clause (i) may include—

‘‘(I) modifications to the Energy Guide label; or 

‘‘(II) other methods that make it easy for consumers and installers to use and understand at 

the point of installation. 

‘‘(iii) COMPLETION OF RULEMAKING.—The rulemaking 

shall be completed not later 15 months after the date 

of the publication of a final rule that establishes a regional standard for a product.’’. 

(b) PROHIBITED ACTS.—Section 332(a) of the Energy Policy and 

Conservation Act (42 U.S.C. 6302(a)) is amended— (1) in paragraph (4), by striking ‘‘or’’ after the semicolon at 

the end; 


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(2) in paragraph (5), by striking ‘‘part.’’ and inserting ‘‘part, 

except to the extent that the new covered product is covered 

by a regional standard that is more stringent than the base national standard; or’’; and 

(3) by adding at the end the following: 

‘‘(6) for any manufacturer or private labeler to knowingly sell 

a product to a distributor, contractor, or dealer with knowledge 

that the entity routinely violates any regional standard applicable to the product.’’. 

(c) CONSIDERATION OF PRICES AND OPERATING PATTERNS.—Section 342(a)(6)(B) of the Energy Policy and Conservation Act (42 

U.S.C. 6313(a)(6)(B)) is amended by adding at the end the following: 

‘‘(iii) CONSIDERATION OF PRICES AND OPERATING PATTERNS.—If the Secretary is considering revised standards for air-cooled 3-phase central air conditioners and 

central air conditioning heat pumps with less 65,000 

Btu per hour (cooling capacity), the Secretary shall 

use commercial energy prices and operating patterns 

in all analyses conducted by the Secretary.’’. 

SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS. 

Section 325(p) of the Energy Policy and Conservation Act (42 

U.S.C. 6925(p)) is amended—

(1) by striking paragraph (1); and 

(2) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively. 

SEC. 308. EXPEDITED RULEMAKINGS. 

(a) PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.—Section 325(p) of the Energy Policy and Conservation Act 

(42 U.S.C. 6295(p)) (as amended by section 307) is amended by 

adding at the end the following: 

‘‘(4) DIRECT FINAL RULES.—

‘‘(A) IN GENERAL.—On receipt of a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, and 

contains recommendations with respect to an energy or 

water conservation standard—

‘‘(i) if the Secretary determines that the recommended standard contained in the statement is in 

accordance with subsection (o) or section 342(a)(6)(B), 

as applicable, the Secretary may issue a final rule that 

establishes an energy or water conservation standard 

and is published simultaneously with a notice of proposed rulemaking that proposes a new or amended energy or water conservation standard that is identical 

to the standard established in the final rule to establish the recommended standard (referred to in this 

paragraph as a ‘direct final rule’); or 

‘‘(ii) if the Secretary determines that a direct final 

rule cannot be issued based on the statement, the Secretary shall publish a notice of the determination, toVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00077 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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gether with an explanation of the reasons for the determination. ‘‘(B) PUBLIC COMMENT.—The Secretary shall solicit public comment for a period of at least 110 days with respect 

to each direct final rule issued by the Secretary under subparagraph (A)(i). ‘‘(C) WITHDRAWAL OF DIRECT FINAL RULES.— ‘‘(i) IN GENERAL.—Not later than 120 days after the 

date on which a direct final rule issued under subparagraph (A)(i) is published in the Federal Register, 

the Secretary shall withdraw the direct final rule if— ‘‘(I) the Secretary receives 1 or more adverse 

public comments relating to the direct final rule 

under subparagraph (B)(i) or any alternative joint 

recommendation; and ‘‘(II) based on the rulemaking record relating to 

the direct final rule, the Secretary determines 

that such adverse public comments or alternative 

joint recommendation may provide a reasonable 

basis for withdrawing the direct final rule under 

subsection (o), section 342(a)(6)(B), or any other 

applicable law. ‘‘(ii) ACTION ON WITHDRAWAL.—On withdrawal of a 

direct final rule under clause (i), the Secretary shall— ‘‘(I) proceed with the notice of proposed rulemaking published simultaneously with the direct 

final rule as described in subparagraph (A)(i); and ‘‘(II) publish in the Federal Register the reasons 

why the direct final rule was withdrawn. ‘‘(iii) TREATMENT OF WITHDRAWN DIRECT FINAL

RULES.—A direct final rule that is withdrawn under 

clause (i) shall not be considered to be a final rule for 

purposes of subsection (o). ‘‘(D) EFFECT OF PARAGRAPH.—Nothing in this paragraph 

authorizes the Secretary to issue a direct final rule based 

solely on receipt of more than 1 statement containing recommended standards relating to the direct final rule.’’. (b) CONFORMING AMENDMENT.—Section 345(b)(1) of the Energy 

Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended in 

the first sentence by inserting ‘‘section 325(p)(5),’’ after ‘‘The provisions of’’. 

SEC. 309. BATTERY CHARGERS. 

Section 325(u)(1)(E) of the Energy Policy and Conservation Act 

(42 U.S.C. 6295(u)(1)(E)) is amended—

(1) by striking ‘‘(E)(i) Not’’ and inserting the following: 

‘‘(E) EXTERNAL POWER SUPPLIES AND BATTERY CHARGERS.—

‘‘(i) ENERGY CONSERVATION STANDARDS.—

‘‘(I) EXTERNAL POWER SUPPLIES.—Not’’; 

(2) by striking ‘‘3 years’’ and inserting ‘‘2 years’’; 

(3) by striking ‘‘battery chargers and’’ each place it appears; 

and 

(4) by adding at the end the following : 

‘‘(II) BATTERY CHARGERS.—Not later than July 

1, 2011, the Secretary shall issue a final rule that 


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prescribes energy conservation standards for battery chargers or classes of battery chargers or determine that no energy conservation standard is 

technically feasible and economically justified.’’. 

SEC. 310. STANDBY MODE. 

Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 

6295) is amended— (1) in subsection (u)— (A) by striking paragraphs (2), (3), and (4); and 

(B) by redesignating paragraph (5) and (6) as paragraphs (2) and (3), respectively; 

(2) by redesignating subsection (gg) as subsection (hh); 

(3) by inserting after subsection (ff) the following: ‘‘(gg) STANDBY MODE ENERGY USE.— ‘‘(1) DEFINITIONS.— ‘‘(A) IN GENERAL.—Unless the Secretary determines otherwise pursuant to subparagraph (B), in this subsection: ‘‘(i) ACTIVE MODE.—The term ‘active mode’ means 

the condition in which an energy-using product— ‘‘(I) is connected to a main power source; 

‘‘(II) has been activated; and 

‘‘(III) provides 1 or more main functions. ‘‘(ii) OFF MODE.—The term ‘off mode’ means the condition in which an energy-using product— ‘‘(I) is connected to a main power source; and 

‘‘(II) is not providing any standby or active mode 

function. ‘‘(iii) STANDBY MODE.—The term ‘standby mode’ means the condition in which an energy-using product— ‘‘(I) is connected to a main power source; and 

‘‘(II) offers 1 or more of the following user-oriented or protective functions: ‘‘(aa) To facilitate the activation or deactivation of other functions (including active mode) 

by remote switch (including remote control), 

internal sensor, or timer. ‘‘(bb) Continuous functions, including information or status displays (including clocks) or 

sensor-based functions. ‘‘(B) AMENDED DEFINITIONS.—The Secretary may, by 

rule, amend the definitions under subparagraph (A), taking into consideration the most current versions of Standards 62301 and 62087 of the International Electrotechnical 

Commission. 

‘‘(2) TEST PROCEDURES.—

‘‘(A) IN GENERAL.—Test procedures for all covered products shall be amended pursuant to section 323 to include 

standby mode and off mode energy consumption, taking 

into consideration the most current versions of Standards 

62301 and 62087 of the International Electrotechnical 

Commission, with such energy consumption integrated 

into the overall energy efficiency, energy consumption, or 

other energy descriptor for each covered product, unless 

the Secretary determines that—


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‘‘(i) the current test procedures for a covered product 

already fully account for and incorporate the standby 

mode and off mode energy consumption of the covered 

product; or 

‘‘(ii) such an integrated test procedure is technically 

infeasible for a particular covered product, in which 

case the Secretary shall prescribe a separate standby 

mode and off mode energy use test procedure for the 

covered product, if technically feasible. 

‘‘(B) DEADLINES.—The test procedure amendments required by subparagraph (A) shall be prescribed in a final 

rule no later than the following dates: 

‘‘(i) December 31, 2008, for battery chargers and external power supplies. 

‘‘(ii) March 31, 2009, for clothes dryers, room air 

conditioners, and fluorescent lamp ballasts. 

‘‘(iii) June 30, 2009, for residential clothes washers. 

‘‘(iv) September 30, 2009, for residential furnaces 

and boilers. 

‘‘(v) March 31, 2010, for residential water heaters, 

direct heating equipment, and pool heaters. 

‘‘(vi) March 31, 2011, for residential dishwashers, 

ranges and ovens, microwave ovens, and dehumidifiers. 

‘‘(C) PRIOR PRODUCT STANDARDS.—The test procedure 

amendments adopted pursuant to subparagraph (B) shall 

not be used to determine compliance with product standards established prior to the adoption of the amended test 

procedures. 

‘‘(3) INCORPORATION INTO STANDARD.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), based on 

the test procedures required under paragraph (2), any 

final rule establishing or revising a standard for a covered 

product, adopted after July 1, 2010, shall incorporate 

standby mode and off mode energy use into a single 

amended or new standard, pursuant to subsection (o), if 

feasible. 

‘‘(B) SEPARATE STANDARDS.—If not feasible, the Secretary shall prescribe within the final rule a separate 

standard for standby mode and off mode energy consumption, if justified under subsection (o).’’; and 

(4) in paragraph (2) of subsection (hh) (as redesignated by 

paragraph (2)) , by striking ‘‘(ff)’’ each place it appears and inserting ‘‘(gg)’’. 

SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES. 

(a) APPLIANCES.—

(1) DEHUMIDIFIERS.—Section 325(cc) of the Energy Policy 

and Conservation Act (42 U.S.C. 6295(cc)) is amended by striking paragraph (2) and inserting the following: 

‘‘(2) DEHUMIDIFIERS MANUFACTURED ON OR AFTER OCTOBER 1, 

2012.—Dehumidifiers manufactured on or after October 1, 2012, 

shall have an Energy Factor that meets or exceeds the following values: 


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‘‘Product Capacity (pints/day): Minimum Energy 

Factor (liters/ 

KWh)

Up to 35.00 ................................................ 1.35

35.01-45.00 ................................................ 1.50

45.01-54.00 ................................................ 1.60

54.01-75.00 ................................................ 1.70

Greater than 75.00 ................................... 2.5.’’. 

(2) RESIDENTIAL CLOTHES WASHERS AND RESIDENTIAL DISH- WASHERS.—Section 325(g) of the Energy Policy and Conservation Act (42 U.S.C. 6295(g)) is amended by adding at the end 

the following: ‘‘(9) RESIDENTIAL CLOTHES WASHERS MANUFACTURED ON OR

AFTER JANUARY 1, 2011.— ‘‘(A) IN GENERAL.—A top-loading or front-loading standard-size residential clothes washer manufactured on or 

after January 1, 2011, shall have— ‘‘(i) a Modified Energy Factor of at least 1.26; and 

‘‘(ii) a water factor of not more than 9.5. ‘‘(B) AMENDMENT OF STANDARDS.— ‘‘(i) IN GENERAL.—Not later than December 31, 2011, 

the Secretary shall publish a final rule determining 

whether to amend the standards in effect for clothes 

washers manufactured on or after January 1, 2015. ‘‘(ii) AMENDED STANDARDS.—The final rule shall contain any amended standards. ‘‘(10) RESIDENTIAL DISHWASHERS MANUFACTURED ON OR

AFTER JANUARY 1, 2010.— ‘‘(A) IN GENERAL.—A dishwasher manufactured on or 

after January 1, 2010, shall— ‘‘(i) for a standard size dishwasher not exceed 355 

kwh/year and 6.5 gallon per cycle; and 

‘‘(ii) for a compact size dishwasher not exceed 260 

kwh/year and 4.5 gallons per cycle. 

‘‘(B) AMENDMENT OF STANDARDS.—

‘‘(i) IN GENERAL.—Not later than January 1, 2015, 

the Secretary shall publish a final rule determining 

whether to amend the standards for dishwashers manufactured on or after January 1, 2018. 

‘‘(ii) AMENDED STANDARDS.—The final rule shall contain any amended standards.’’. 

(3) REFRIGERATORS AND FREEZERS.—Section 325(b) of the Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is amended by adding at the end the following: 

‘‘(4) REFRIGERATORS AND FREEZERS MANUFACTURED ON OR

AFTER JANUARY 1, 2014.—

‘‘(A) IN GENERAL.—Not later than December 31, 2010, 

the Secretary shall publish a final rule determining whether to amend the standards in effect for refrigerators, refrigerator-freezers, and freezers manufactured on or after 

January 1, 2014. 

‘‘(B) AMENDED STANDARDS.—The final rule shall contain 

any amended standards.’’. 


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(b) ENERGY STAR.—Section 324A(d)(2) of the Energy Policy and 

Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking 

‘‘January 1, 2010’’ and inserting ‘‘July 1, 2009’’. 

SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS. 

(a) DEFINITIONS.—Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended— (1) in paragraph (1)— (A) by redesignating subparagraphs (G) through (K) as 

subparagraphs (H) through (L), respectively; and 

(B) by inserting after subparagraph (F) the following: 

‘‘(G) Walk-in coolers and walk-in freezers.’’; 

(2) by redesignating paragraphs (20) and (21) as paragraphs 

(21) and (22), respectively; and 

(3) by inserting after paragraph (19) the following: 

‘‘(20) WALK-IN COOLER; WALK-IN FREEZER.— ‘‘(A) IN GENERAL.—The terms ‘walk-in cooler’ and ‘walkin freezer’ mean an enclosed storage space refrigerated to 

temperatures, respectively, above, and at or below 32 degrees Fahrenheit that can be walked into, and has a total 

chilled storage area of less than 3,000 square feet. ‘‘(B) EXCLUSION.—The terms ‘walk-in cooler’ and ‘walk-in 

freezer’ do not include products designed and marketed exclusively for medical, scientific, or research purposes.’’. (b) STANDARDS.—Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following: ‘‘(f) WALK-IN COOLERS AND WALK-IN FREEZERS.— ‘‘(1) IN GENERAL.—Subject to paragraphs (2) through (5), 

each walk-in cooler or walk-in freezer manufactured on or after 

January 1, 2009, shall— ‘‘(A) have automatic door closers that firmly close all 

walk-in doors that have been closed to within 1 inch of full 

closure, except that this subparagraph shall not apply to 

doors wider than 3 feet 9 inches or taller than 7 feet; ‘‘(B) have strip doors, spring hinged doors, or other 

method of minimizing infiltration when doors are open; ‘‘(C) contain wall, ceiling, and door insulation of at least 

R–25 for coolers and R–32 for freezers, except that this 

subparagraph shall not apply to glazed portions of doors 

nor to structural members; ‘‘(D) contain floor insulation of at least R–28 for freezers; ‘‘(E) for evaporator fan motors of under 1 horsepower 

and less than 460 volts, use— ‘‘(i) electronically commutated motors (brushless direct current motors); or ‘‘(ii) 3-phase motors; ‘‘(F) for condenser fan motors of under 1 horsepower, 

use— ‘‘(i) electronically commutated motors; 

‘‘(ii) permanent split capacitor-type motors; or 

‘‘(iii) 3-phase motors; and ‘‘(G) for all interior lights, use light sources with an efficacy of 40 lumens per watt or more, including ballast 

losses (if any), except that light sources with an efficacy of 

40 lumens per watt or less, including ballast losses (if 


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any), may be used in conjunction with a timer or device 

that turns off the lights within 15 minutes of when the 

walk-in cooler or walk-in freezer is not occupied by people. 

‘‘(2) ELECTRONICALLY COMMUTATED MOTORS.—

‘‘(A) IN GENERAL.—The requirements of paragraph 

(1)(E)(i) for electronically commutated motors shall take effect January 1, 2009, unless, prior to that date, the Secretary determines that such motors are only available from 

1 manufacturer. 

‘‘(B) OTHER TYPES OF MOTORS.—In carrying out paragraph (1)(E)(i) and subparagraph (A), the Secretary may 

allow other types of motors if the Secretary determines 

that, on average, those other motors use no more energy 

in evaporator fan applications than electronically commutated motors. 

‘‘(C) MAXIMUM ENERGY CONSUMPTION LEVEL.—The Secretary shall establish the maximum energy consumption 

level under subparagraph (B) not later than January 1, 

2010. 

‘‘(3) ADDITIONAL SPECIFICATIONS.—Each walk-in cooler or 

walk-in freezer with transparent reach-in doors manufactured 

on or after January 1, 2009, shall also meet the following specifications: 

‘‘(A) Transparent reach-in doors for walk-in freezers and 

windows in walk-in freezer doors shall be of triple-pane 

glass with either heat-reflective treated glass or gas fill. 

‘‘(B) Transparent reach-in doors for walk-in coolers and 

windows in walk-in cooler doors shall be—

‘‘(i) double-pane glass with heat-reflective treated 

glass and gas fill; or 

‘‘(ii) triple-pane glass with either heat-reflective 

treated glass or gas fill. 

‘‘(C) If the appliance has an antisweat heater without 

antisweat heat controls, the appliance shall have a total 

door rail, glass, and frame heater power draw of not more 

than 7.1 watts per square foot of door opening (for freezers) and 3.0 watts per square foot of door opening (for coolers). 

‘‘(D) If the appliance has an antisweat heater with 

antisweat heat controls, and the total door rail, glass, and 

frame heater power draw is more than 7.1 watts per 

square foot of door opening (for freezers) and 3.0 watts per 

square foot of door opening (for coolers), the antisweat 

heat controls shall reduce the energy use of the antisweat 

heater in a quantity corresponding to the relative humidity 

in the air outside the door or to the condensation on the 

inner glass pane. 

‘‘(4) PERFORMANCE-BASED STANDARDS.—

‘‘(A) IN GENERAL.—Not later than January 1, 2012, the 

Secretary shall publish performance-based standards for 

walk-in coolers and walk-in freezers that achieve the maximum improvement in energy that the Secretary determines is technologically feasible and economically justified. 

‘‘(B) APPLICATION.—


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‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

the standards shall apply to products described in subparagraph (A) that are manufactured beginning on the 

date that is 3 years after the final rule is published. 

‘‘(ii) DELAYED EFFECTIVE DATE.—If the Secretary determines, by rule, that a 3-year period is inadequate, 

the Secretary may establish an effective date for products manufactured beginning on the date that is not 

more than 5 years after the date of publication of a 

final rule for the products. 

‘‘(5) AMENDMENT OF STANDARDS.—

‘‘(A) IN GENERAL.—Not later than January 1, 2020, the 

Secretary shall publish a final rule to determine if the 

standards established under paragraph (4) should be 

amended. 

‘‘(B) APPLICATION.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

the rule shall provide that the standards shall apply 

to products manufactured beginning on the date that 

is 3 years after the final rule is published. 

‘‘(ii) DELAYED EFFECTIVE DATE.—If the Secretary determines, by rule, that a 3-year period is inadequate, 

the Secretary may establish an effective date for products manufactured beginning on the date that is not 

more than 5 years after the date of publication of a 

final rule for the products.’’. 

(c) TEST PROCEDURES.—Section 343(a) of the Energy Policy and 

Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the 

end the following: 

‘‘(9) WALK-IN COOLERS AND WALK-IN FREEZERS.—

‘‘(A) IN GENERAL.—For the purpose of test procedures for 

walk-in coolers and walk-in freezers: 

‘‘(i) The R value shall be the 1/K factor multiplied by 

the thickness of the panel. 

‘‘(ii) The K factor shall be based on ASTM test procedure C518-2004. 

‘‘(iii) For calculating the R value for freezers, the K 

factor of the foam at 20°F (average foam temperature) 

shall be used. 

‘‘(iv) For calculating the R value for coolers, the K 

factor of the foam at 55°F (average foam temperature) 

shall be used. 

‘‘(B) TEST PROCEDURE.—

‘‘(i) IN GENERAL.—Not later than January 1, 2010, 

the Secretary shall establish a test procedure to measure the energy-use of walk-in coolers and walk-in 

freezers. 

‘‘(ii) COMPUTER MODELING.—The test procedure may 

be based on computer modeling, if the computer model 

or models have been verified using the results of laboratory tests on a significant sample of walk-in coolers 

and walk-in freezers.’’. 

(d) LABELING.—Section 344(e) of the Energy Policy and Conservation Act (42 U.S.C. 6315(e)) is amended by inserting ‘‘walk-in coolVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00084 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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ers and walk-in freezers,’’ after ‘‘commercial clothes washers,’’ each 

place it appears. 

(e) ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMP- TION.—Section 345 of the Energy Policy and Conservation Act (42 

U.S.C. 6316) is amended— (1) by striking ‘‘subparagraphs (B), (C), (D), (E), and (F)’’ each place it appears and inserting ‘‘subparagraphs (B) 

through (G)’’; and 

(2) by adding at the end the following: ‘‘(h) WALK-IN COOLERS AND WALK-IN FREEZERS.— ‘‘(1) COVERED TYPES.— ‘‘(A) RELATIONSHIP TO OTHER LAW.— ‘‘(i) IN GENERAL.—Except as otherwise provided in 

this subsection, section 327 shall apply to walk-in coolers and walk-in freezers for which standards have 

been established under paragraphs (1), (2), and (3) of 

section 342(f) to the same extent and in the same 

manner as the section applies under part A on the 

date of enactment of this subsection. ‘‘(ii) STATE STANDARDS.—Any State standard prescribed before the date of enactment of this subsection 

shall not be preempted until the standards established 

under paragraphs (1) and (2) of section 342(f) take effect. ‘‘(B) ADMINISTRATION.—In applying section 327 to equipment under subparagraph (A), paragraphs (1), (2), and (3) 

of subsection (a) shall apply. ‘‘(2) FINAL RULE NOT TIMELY.— ‘‘(A) IN GENERAL.—If the Secretary does not issue a final 

rule for a specific type of walk-in cooler or walk-in freezer 

within the time frame established under paragraph (4) or 

(5) of section 342(f), subsections (b) and (c) of section 327 

shall no longer apply to the specific type of walk-in cooler 

or walk-in freezer during the period— ‘‘(i) beginning on the day after the scheduled date 

for a final rule; and ‘‘(ii) ending on the date on which the Secretary publishes a final rule covering the specific type of walkin cooler or walk-in freezer. ‘‘(B) STATE STANDARDS.—Any State standard issued before the publication of the final rule shall not be preempted until the standards established in the final rule 

take effect. 

‘‘(3) CALIFORNIA.—Any standard issued in the State of California before January 1, 2011, under title 20 of the California 

Code of Regulations, that refers to walk-in coolers and walkin freezers, for which standards have been established under 

paragraphs (1), (2), and (3) of section 342(f), shall not be preempted until the standards established under section 342(f)(3) 

take effect.’’. 

SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS. 

(a) DEFINITIONS.—Section 340(13) of the Energy Policy and Conservation Act (42 U.S.C. 6311(13)) is amended—

(1) by redesignating subparagraphs (B) through (H) as subparagraphs (C) through (I), respectively; and 


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(2) by striking ‘‘(13)(A)’’ and all that follows through the end 

of subparagraph (A) and inserting the following: ‘‘(13) ELECTRIC MOTOR.— ‘‘(A) GENERAL PURPOSE ELECTRIC MOTOR (SUBTYPE I).— The term ‘general purpose electric motor (subtype I)’ means any motor that meets the definition of ‘General 

Purpose’ as established in the final rule issued by the Department of Energy entitled ‘Energy Efficiency Program 

for Certain Commercial and Industrial Equipment: Test 

Procedures, Labeling, and Certification Requirements for 

Electric Motors’ (10 C.F.R. 431), as in effect on the date of 

enactment of the Energy Independence and Security Act of 

2007. ‘‘(B) GENERAL PURPOSE ELECTRIC MOTOR (SUBTYPE II).—

The term ‘general purpose electric motor (subtype II)’

means motors incorporating the design elements of a general purpose electric motor (subtype I) that are configured 

as 1 of the following: 

‘‘(i) A U-Frame Motor. 

‘‘(ii) A Design C Motor. 

‘‘(iii) A close-coupled pump motor. 

‘‘(iv) A Footless motor. 

‘‘(v) A vertical solid shaft normal thrust motor (as 

tested in a horizontal configuration). 

‘‘(vi) An 8-pole motor (900 rpm). 

‘‘(vii) A poly-phase motor with voltage of not more 

than 600 volts (other than 230 or 460 volts.’’. 

(b) STANDARDS.— (1) AMENDMENT.—Section 342(b) of the Energy Policy and 

Conservation Act (42 U.S.C. 6313(b)) is amended—

(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and 

(B) by inserting after paragraph (1) the following: ‘‘(2) ELECTRIC MOTORS.—

‘‘(A) GENERAL PURPOSE ELECTRIC MOTORS (SUBTYPE I).— Except as provided in subparagraph (B), each general purpose electric motor (subtype I) with a power rating of 1 

horsepower or greater, but not greater than 200 horsepower, manufactured (alone or as a component of another 

piece of equipment) after the 3-year period beginning on 

the date of enactment of the Energy Independence and Security Act of 2007, shall have a nominal full load efficiency 

that is not less than as defined in NEMA MG–1 (2006) 

Table 12–12. ‘‘(B) FIRE PUMP MOTORS.—Each fire pump motor manufactured (alone or as a component of another piece of 

equipment) after the 3-year period beginning on the date 

of enactment of the Energy Independence and Security Act 

of 2007 shall have nominal full load efficiency that is not 

less than as defined in NEMA MG–1 (2006) Table 12–11. ‘‘(C) GENERAL PURPOSE ELECTRIC MOTORS (SUBTYPE II).— Each general purpose electric motor (subtype II) with a 

power rating of 1 horsepower or greater, but not greater 

than 200 horsepower, manufactured (alone or as a component of another piece of equipment) after the 3-year period 


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beginning on the date of enactment of the Energy Independence and Security Act of 2007, shall have a nominal 

full load efficiency that is not less than as defined in 

NEMA MG–1 (2006) Table 12–11. ‘‘(D) NEMA DESIGN B, GENERAL PURPOSE ELECTRIC MO- TORS.—Each NEMA Design B, general purpose electric 

motor with a power rating of more than 200 horsepower, 

but not greater than 500 horsepower, manufactured (alone 

or as a component of another piece of equipment) after the 

3-year period beginning on the date of enactment of the 

Energy Independence and Security Act of 2007, shall have 

a nominal full load efficiency that is not less than as defined in NEMA MG–1 (2006) Table 12–11.’’. (2) EFFECTIVE DATE.—The amendments made by paragraph 

(1) take effect on the date that is 3 years after the date of enactment of this Act. 

SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND HEAT PUMPS. 

(a) DEFINITIONS.—Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended by adding at the end the 

following: ‘‘(22) SINGLE PACKAGE VERTICAL AIR CONDITIONER.—The term ‘single package vertical air conditioner’ means air-cooled commercial package air conditioning and heating equipment that— ‘‘(A) is factory-assembled as a single package that— ‘‘(i) has major components that are arranged 

vertically; ‘‘(ii) is an encased combination of cooling and optional heating components; and ‘‘(iii) is intended for exterior mounting on, adjacent 

interior to, or through an outside wall; ‘‘(B) is powered by a single- or 3-phase current; 

‘‘(C) may contain 1 or more separate indoor grilles, outdoor louvers, various ventilation options, indoor free air 

discharges, ductwork, well plenum, or sleeves; and 

‘‘(D) has heating components that may include electrical 

resistance, steam, hot water, or gas, but may not include 

reverse cycle refrigeration as a heating means. 

‘‘(23) SINGLE PACKAGE VERTICAL HEAT PUMP.—The term ‘single package vertical heat pump’ means a single package 

vertical air conditioner that—

‘‘(A) uses reverse cycle refrigeration as its primary heat 

source; and 

‘‘(B) may include secondary supplemental heating by 

means of electrical resistance, steam, hot water, or gas.’’. 

(b) STANDARDS.—Section 342(a) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)) is amended—

(1) in the first sentence of each of paragraphs (1) and (2), by 

inserting ‘‘(including single package vertical air conditioners 

and single package vertical heat pumps)’’ after ‘‘heating equipment’’ each place it appears; 

(2) in paragraph (1), by striking ‘‘but before January 1, 

2010,’’; 

(3) in the first sentence of each of paragraphs (7), (8), and 

(9), by inserting ‘‘(other than single package vertical air condiVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00087 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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tioners and single package vertical heat pumps)’’ after ‘‘heating 

equipment’’ each place it appears; 

(4) in paragraph (7)— (A) by striking ‘‘manufactured on or after January 1, 

2010,’’; 

(B) in each of subparagraphs (A), (B), and (C), by striking ‘‘The’’ and inserting ‘‘For equipment manufactured on 

or after January 1, 2010, the’’; and 

(C) by adding at the end the following: ‘‘(D) For equipment manufactured on or after the later of 

January 1, 2008, or the date that is 180 days after the date 

of enactment of the Energy Independence and Security Act of 

2007—

‘‘(i) the minimum seasonal energy efficiency ratio of aircooled 3-phase electric central air conditioners and central 

air conditioning heat pumps less than 65,000 Btu per hour 

(cooling capacity), split systems, shall be 13.0; ‘‘(ii) the minimum seasonal energy efficiency ratio of aircooled 3-phase electric central air conditioners and central 

air conditioning heat pumps less than 65,000 Btu per hour 

(cooling capacity), single package, shall be 13.0; ‘‘(iii) the minimum heating seasonal performance factor 

of air-cooled 3-phase electric central air conditioning heat 

pumps less than 65,000 Btu per hour (cooling capacity), 

split systems, shall be 7.7; and ‘‘(iv) the minimum heating seasonal performance factor 

of air-cooled three-phase electric central air conditioning 

heat pumps less than 65,000 Btu per hour (cooling capacity), single package, shall be 7.7.’’; and 

(5) by adding at the end the following: 

‘‘(10) SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND SINGLE PACKAGE VERTICAL HEAT PUMPS.—

‘‘(A) IN GENERAL.—Single package vertical air conditioners and single package vertical heat pumps manufactured on or after January 1, 2010, shall meet the following 

standards: ‘‘(i) The minimum energy efficiency ratio of single 

package vertical air conditioners less than 65,000 Btu 

per hour (cooling capacity), single-phase, shall be 9.0. ‘‘(ii) The minimum energy efficiency ratio of single 

package vertical air conditioners less than 65,000 Btu 

per hour (cooling capacity), three-phase, shall be 9.0. ‘‘(iii) The minimum energy efficiency ratio of single 

package vertical air conditioners at or above 65,000 

Btu per hour (cooling capacity) but less than 135,000 

Btu per hour (cooling capacity), shall be 8.9. ‘‘(iv) The minimum energy efficiency ratio of single 

package vertical air conditioners at or above 135,000 

Btu per hour (cooling capacity) but less than 240,000 

Btu per hour (cooling capacity), shall be 8.6. 

‘‘(v) The minimum energy efficiency ratio of single 

package vertical heat pumps less than 65,000 Btu per 

hour (cooling capacity), single-phase, shall be 9.0 and 

the minimum coefficient of performance in the heating 

mode shall be 3.0. 


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‘‘(vi) The minimum energy efficiency ratio of single 

package vertical heat pumps less than 65,000 Btu per 

hour (cooling capacity), three-phase, shall be 9.0 and 

the minimum coefficient of performance in the heating 

mode shall be 3.0. 

‘‘(vii) The minimum energy efficiency ratio of single 

package vertical heat pumps at or above 65,000 Btu 

per hour (cooling capacity) but less than 135,000 Btu 

per hour (cooling capacity), shall be 8.9 and the minimum coefficient of performance in the heating mode 

shall be 3.0. 

‘‘(viii) The minimum energy efficiency ratio of single 

package vertical heat pumps at or above 135,000 Btu 

per hour (cooling capacity) but less than 240,000 Btu 

per hour (cooling capacity), shall be 8.6 and the minimum coefficient of performance in the heating mode 

shall be 2.9. 

‘‘(B) REVIEW.—Not later than 3 years after the date of 

enactment of this paragraph, the Secretary shall review 

the most recently published ASHRAE/IES Standard 90.1 

with respect to single package vertical air conditioners and 

single package vertical heat pumps in accordance with the 

procedures established under paragraph (6).’’. 

SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND 

BUILDINGS IN COLD CLIMATES. 

(a) RESEARCH.—Section 911(a)(2) of the Energy Policy Act of 

2005 (42 U.S.C. 16191(a)(2)) is amended—

(1) in subparagraph (C), by striking ‘‘and’’ at the end; 

(2) in subparagraph (D), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(E) technologies to improve the energy efficiency of appliances and mechanical systems for buildings in cold climates, including combined heat and power units and increased use of renewable resources, including fuel.’’. 

(b) REBATES.—Section 124 of the Energy Policy Act of 2005 (42 

U.S.C. 15821) is amended—

(1) in subsection (b)(1), by inserting ‘‘, or products with improved energy efficiency in cold climates,’’ after ‘‘residential 

Energy Star products’’; and 

(2) in subsection (e), by inserting ‘‘or product with improved 

energy efficiency in a cold climate’’ after ‘‘residential Energy 

Star product’’ each place it appears. 

SEC. 316. TECHNICAL CORRECTIONS. 

(a) DEFINITION OF F96T12 LAMP.—

(1) IN GENERAL.—Section 135(a)(1)(A)(ii) of the Energy Policy 

Act of 2005 (Public Law 109–58; 119 Stat. 624) is amended by 

striking ‘‘C78.1–1978(R1984)’’ and inserting ‘‘C78.3–

1978(R1984)’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) takes effect on August 8, 2005. 

(b) DEFINITION OF FLUORESCENT LAMP.—Section 321(30)(B)(viii) 

of the Energy Policy and Conservation Act (42 U.S.C. 

6291(30)(B)(viii)) is amended by striking ‘‘82’’ and inserting ‘‘87’’. 


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(c) MERCURY VAPOR LAMP BALLASTS.— (1) DEFINITIONS.—Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by section 

301(a)(2)) is amended— (A) by striking paragraphs (46) through (48) and inserting the following: ‘‘(46) HIGH INTENSITY DISCHARGE LAMP.— ‘‘(A) IN GENERAL.—The term ‘high intensity discharge 

lamp’ means an electric-discharge lamp in which— ‘‘(i) the light-producing arc is stabilized by the arc 

tube wall temperature; and ‘‘(ii) the arc tube wall loading is in excess of 3 Watts/ 

cm2. 

‘‘(B) INCLUSIONS.—The term ‘high intensity discharge 

lamp’ includes mercury vapor, metal halide, and high-pressure sodium lamps described in subparagraph (A). 

‘‘(47) MERCURY VAPOR LAMP.—

‘‘(A) IN GENERAL.—The term ‘mercury vapor lamp’ means 

a high intensity discharge lamp in which the major portion 

of the light is produced by radiation from mercury typically operating at a partial vapor pressure in excess of 

100,000 Pa (approximately 1 atm). ‘‘(B) INCLUSIONS.—The term ‘mercury vapor lamp’ includes clear, phosphor-coated, and self-ballasted screw 

base lamps described in subparagraph (A). ‘‘(48) MERCURY VAPOR LAMP BALLAST.—The term ‘mercury 

vapor lamp ballast’ means a device that is designed and marketed to start and operate mercury vapor lamps intended for 

general illumination by providing the necessary voltage and 

current.’’; and 

(B) by adding at the end the following: ‘‘(53) SPECIALTY APPLICATION MERCURY VAPOR LAMP BALLAST.—The term ‘specialty application mercury vapor lamp ballast’ means a mercury vapor lamp ballast that— ‘‘(A) is designed and marketed for operation of mercury 

vapor lamps used in quality inspection, industrial processing, or scientific use, including fluorescent microscopy 

and ultraviolet curing; and ‘‘(B) in the case of a specialty application mercury vapor 

lamp ballast, the label of which— ‘‘(i) provides that the specialty application mercury 

vapor lamp ballast is ‘For specialty applications only, 

not for general illumination’; and ‘‘(ii) specifies the specific applications for which the 

ballast is designed.’’. (2) STANDARD SETTING AUTHORITY.—Section 325(ee) of the 

Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is 

amended by inserting ‘‘(other than specialty application mercury vapor lamp ballasts)’’ after ‘‘ballasts’’. (d) ENERGY CONSERVATION STANDARDS.—Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended— (1) in subsection (v)— (A) in the subsection heading, by striking ‘‘CEILING FANS

AND’’; 

(B) by striking paragraph (1); and 


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(C) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively; and 

(2) in subsection (ff)—

(A) in paragraph (1)(A)—

(i) by striking clause (iii); 

(ii) by redesignating clause (iv) as clause (iii); and 

(iii) in clause (iii)(II) (as so redesignated), by inserting ‘‘fans sold for’’ before ‘‘outdoor’’; and 

(B) in paragraph (4)(C)—

(i) in the matter preceding clause (i), by striking 

‘‘subparagraph (B)’’ and inserting ‘‘subparagraph (A)’’; 

and 

(ii) by striking clause (ii) and inserting the following: 

‘‘(ii) shall be packaged with lamps to fill all sockets.’’; 

(C) in paragraph (6), by redesignating subparagraphs (C) 

and (D) as clauses (i) and (ii), respectively, of subparagraph (B); and 

(D) in paragraph (7), by striking ‘‘327’’ the second place 

it appears and inserting ‘‘324’’. 

Subtitle B—Lighting Energy Efficiency 

SEC. 321. EFFICIENT LIGHT BULBS. 

(a) ENERGY EFFICIENCY STANDARDS FOR GENERAL SERVICE INCANDESCENT LAMPS.—

(1) DEFINITION OF GENERAL SERVICE INCANDESCENT LAMP.—

Section 321(30) of the Energy Policy and Conservation Act (42 

U.S.C. 6291(30)) is amended—

(A) by striking subparagraph (D) and inserting the following: 

‘‘(D) GENERAL SERVICE INCANDESCENT LAMP.—

‘‘(i) IN GENERAL.—The term ‘general service incandescent lamp’ means a standard incandescent or halogen type lamp that—

‘‘(I) is intended for general service applications; 

‘‘(II) has a medium screw base; 

‘‘(III) has a lumen range of not less than 310 

lumens and not more than 2,600 lumens; and 

‘‘(IV) is capable of being operated at a voltage 

range at least partially within 110 and 130 volts. 

‘‘(ii) EXCLUSIONS.—The term ‘general service incandescent lamp’ does not include the following incandescent lamps: 

‘‘(I) An appliance lamp. 

‘‘(II) A black light lamp. 

‘‘(III) A bug lamp. 

‘‘(IV) A colored lamp. 

‘‘(V) An infrared lamp. 

‘‘(VI) A left-hand thread lamp. 

‘‘(VII) A marine lamp. 

‘‘(VIII) A marine signal service lamp. 

‘‘(IX) A mine service lamp. 

‘‘(X) A plant light lamp. 

‘‘(XI) A reflector lamp. 

‘‘(XII) A rough service lamp. 


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‘‘(XIII) A shatter-resistant lamp (including a 

shatter-proof lamp and a shatter-protected lamp). ‘‘(XIV) A sign service lamp. 

‘‘(XV) A silver bowl lamp. 

‘‘(XVI) A showcase lamp. 

‘‘(XVII) A 3-way incandescent lamp. 

‘‘(XVIII) A traffic signal lamp. 

‘‘(XIX) A vibration service lamp. 

‘‘(XX) A G shape lamp (as defined in ANSI 

C78.20 -2003 andC79.1-2002with a diameter of 5 

inches or more. ‘‘(XXI) A T shape lamp (as defined in 

ANSIC78.20-2003 and C79.1-2002) and that uses 

not more than 40 watts or has a length of more 

than 10 inches. ‘‘(XXII) A B, BA, CA, F, G16–1/2,G–25,G30, S, 

or M–14 lamp (as defined in ANSI C79.1-2002 and 

ANSI C78.20-2003) of 40 watts or less.’’; and 

(B) by adding at the end the following: 

‘‘(T) APPLIANCE LAMP.—The term ‘appliance lamp’ means 

any lamp that—

‘‘(i) is specifically designed to operate in a household 

appliance, has a maximum wattage of 40 watts, and is 

sold at retail, including an oven lamp, refrigerator 

lamp, and vacuum cleaner lamp; and 

‘‘(ii) is designated and marketed for the intended application, with—

‘‘(I) the designation on the lamp packaging; and 

‘‘(II) marketing materials that identify the lamp 

as being for appliance use. 

‘‘(U) CANDELABRA BASE INCANDESCENT LAMP.—The term ‘candelabra base incandescent lamp’ means a lamp that 

uses candelabra screw base as described in ANSI C81.61– 2006, Specifications for Electric Bases, common designations E11 and E12. 

‘‘(V) INTERMEDIATE BASE INCANDESCENT LAMP.—The 

term ‘intermediate base incandescent lamp’ means a lamp 

that uses an intermediate screw base as described in ANSI 

C81.61–2006, Specifications for Electric Bases, common 

designation E17. ‘‘(W) MODIFIED SPECTRUM.—The term ‘modified spectrum’ means, with respect to an incandescent lamp, an incandescent lamp that—

‘‘(i) is not a colored incandescent lamp; and 

‘‘(ii) when operated at the rated voltage and wattage 

of the incandescent lamp—

‘‘(I) has a color point with (x,y) chromaticity coordinates on the Commission Internationale de 

l’Eclairage (C.I.E.) 1931 chromaticity diagram that 

lies below the black-body locus; and ‘‘(II) has a color point with (x,y) chromaticity coordinates on the C.I.E. 1931 chromaticity diagram 

that lies at least 4 MacAdam steps (as referenced 

in IESNA LM16) distant from the color point of a 

clear lamp with the same filament and bulb 


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shape, operated at the same rated voltage and 

wattage. ‘‘(X) ROUGH SERVICE LAMP.—The term ‘rough service 

lamp’ means a lamp that— ‘‘(i) has a minimum of 5 supports with filament configurations that are C–7A, C–11, C–17, and C–22 as 

listed in Figure 6–12 of the 9th edition of the IESNA 

Lighting handbook, or similar configurations where 

lead wires are not counted as supports; and ‘‘(ii) is designated and marketed specifically for ‘rough service’ applications, with— ‘‘(I) the designation appearing on the lamp packaging; and ‘‘(II) marketing materials that identify the lamp 

as being for rough service. ‘‘(Y) 3-WAY INCANDESCENT LAMP.—The term ‘3-way incandescent lamp’ includes an incandescent lamp that—

‘‘(i) employs 2 filaments, operated separately and in 

combination, to provide 3 light levels; and 

‘‘(ii) is designated on the lamp packaging and marketing materials as being a 3-way incandescent lamp. 

‘‘(Z) SHATTER-RESISTANT LAMP, SHATTER-PROOF LAMP, OR

SHATTER-PROTECTED LAMP.—The terms ‘shatter-resistant 

lamp’, ‘shatter-proof lamp’, and ‘shatter-protected lamp’ mean a lamp that— ‘‘(i) has a coating or equivalent technology that is 

compliant with NSF/ANSI 51 and is designed to contain the glass if the glass envelope of the lamp is broken; and ‘‘(ii) is designated and marketed for the intended application, with— ‘‘(I) the designation on the lamp packaging; and 

‘‘(II) marketing materials that identify the lamp 

as being shatter-resistant, shatter-proof, or shatter-protected. 

‘‘(AA) VIBRATION SERVICE LAMP.—The term ‘vibration 

service lamp’ means a lamp that— ‘‘(i) has filament configurations that are C–5, C–7A, 

or C–9, as listed in Figure 6–12 of the 9th Edition of 

the IESNA Lighting Handbook or similar configurations; ‘‘(ii) has a maximum wattage of 60 watts; 

‘‘(iii) is sold at retail in packages of 2 lamps or less; 

and ‘‘(iv) is designated and marketed specifically for vibration service or vibration-resistant applications, 

with—

‘‘(I) the designation appearing on the lamp packaging; and ‘‘(II) marketing materials that identify the lamp 

as being vibration service only. 

‘‘(BB) GENERAL SERVICE LAMP.— ‘‘(i) IN GENERAL.—The term ‘general service lamp’

includes—

‘‘(I) general service incandescent lamps; 


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‘‘(II) compact fluorescent lamps; 

‘‘(III) general service light-emitting diode (LED 

or OLED) lamps; and ‘‘(IV) any other lamps that the Secretary determines are used to satisfy lighting applications traditionally served by general service incandescent 

lamps. ‘‘(ii) EXCLUSIONS.—The term ‘general service lamp’ does not include— ‘‘(I) any lighting application or bulb shape described in any of subclauses (I) through (XXII) of 

subparagraph (D)(ii); or ‘‘(II) any general service fluorescent lamp or incandescent reflector lamp. ‘‘(CC) LIGHT-EMITTING DIODE; LED.—

‘‘(i) IN GENERAL.—The terms ‘light-emitting diode’

and ‘LED’ means a p–n junction solid state device the 

radiated output of which is a function of the physical 

construction, material used, and exciting current of 

the device. 

‘‘(ii) OUTPUT.—The output of a light-emitting diode 

may be in— ‘‘(I) the infrared region; 

‘‘(II) the visible region; or 

‘‘(III) the ultraviolet region. ‘‘(DD) ORGANIC LIGHT-EMITTING DIODE; OLED.—The 

terms ‘organic light-emitting diode’ and ‘OLED’ mean a 

thin-film light-emitting device that typically consists of a 

series of organic layers between 2 electrical contacts (electrodes). ‘‘(EE) COLORED INCANDESCENT LAMP.—The term ‘colored 

incandescent lamp’ means an incandescent lamp designated and marketed as a colored lamp that has— ‘‘(i) a color rendering index of less than 50, as determined according to the test method given in C.I.E. 

publication 13.3–1995; or 

‘‘(ii) a correlated color temperature of less than 

2,500K, or greater than 4,600K, where correlated temperature is computed according to the Journal of Optical Society of America, Vol. 58, pages 1528–1595 

(1986).’’. 

(2) COVERAGE.—Section 322(a)(14) of the Energy Policy and 

Conservation Act (42 U.S.C. 6292(a)(14)) is amended by inserting ‘‘, general service incandescent lamps,’’ after ‘‘fluorescent 

lamps’’. 

(3) ENERGY CONSERVATION STANDARDS.—Section 325 of the 

Energy Policy and Conservation Act (42 U.S.C. 6295) is amended—

(A) in subsection (i)— (i) in the section heading, by inserting ‘‘, GENERAL

SERVICE INCANDESCENT LAMPS, INTERMEDIATE BASE

INCANDESCENT LAMPS, CANDELABRA BASE INCANDES- CENT LAMPS,’’ after ‘‘FLUORESCENT LAMPS’’; 

(ii) in paragraph (1)—

(I) in subparagraph (A)—


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95 

(aa) by inserting ‘‘, general service incandescent lamps, intermediate base incandescent 

lamps, candelabra base incandescent lamps,’’ after ‘‘fluorescent lamps’’; 

(bb) by inserting ‘‘, new maximum wattage,’’ after ‘‘lamp efficacy’’; and 

(cc) by inserting after the table entitled ‘‘IN- CANDESCENT REFLECTOR LAMPS’’ the following: 

‘‘GENERAL SERVICE INCANDESCENT LAMPS 

Rated Lumen Ranges Maximum Rate Wattage 

Minimum Rate 

Lifetime Effective Date 

1490 –2600 72 1,000 hrs 1/1/2012 

1050 –1489 53 1,000 hrs 1/1/2013 

750 –1049 43 1,000 hrs 1/1/2014 

310 –749 29 1,000 hrs 1/1/2014 

‘‘MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT 

LAMPS 

Rated Lumen Ranges Maximum Rate Wattage 

Minimum Rate 

Lifetime Effective Date 

1118 –1950 72 1,000 hrs 1/1/2012

788 –1117 53 1,000 hrs 1/1/2013

563 –787 43 1,000 hrs 1/1/2014

232 –562 29 1,000 hrs 1/1/2014’’; 

and 

(II) by striking subparagraph (B) and inserting 

the following: 

‘‘(B) APPLICATION.—

‘‘(i) APPLICATION CRITERIA.—This subparagraph applies to each lamp that—

‘‘(I) is intended for a general service or general 

illumination application (whether incandescent or 

not); 

‘‘(II) has a medium screw base or any other 

screw base not defined in ANSI C81.61–2006; 

‘‘(III) is capable of being operated at a voltage at 

least partially within the range of 110 to 130 

volts; and 

‘‘(IV) is manufactured or imported after December 31, 2011. ‘‘(ii) REQUIREMENT.—For purposes of this paragraph, 

each lamp described in clause (i) shall have a color 

rendering index that is greater than or equal to—

‘‘(I) 80 for nonmodified spectrum lamps; or 

‘‘(II) 75 for modified spectrum lamps. 


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‘‘(C) CANDELABRA INCANDESCENT LAMPS AND INTERMEDIATE BASE INCANDESCENT LAMPS.—

‘‘(i) CANDELABRA BASE INCANDESCENT LAMPS.—A 

candelabra base incandescent lamp shall not exceed 60 

rated watts. 

‘‘(ii) INTERMEDIATE BASE INCANDESCENT LAMPS.—An 

intermediate base incandescent lamp shall not exceed 

40 rated watts. 

‘‘(D) EXEMPTIONS.—

‘‘(i) PETITION.—Any person may petition the Secretary for an exemption for a type of general service 

lamp from the requirements of this subsection. 

‘‘(ii) CRITERIA.—The Secretary may grant an exemption under clause (i) only to the extent that the Secretary finds, after a hearing and opportunity for public 

comment, that it is not technically feasible to serve a 

specialized lighting application (such as a military, 

medical, public safety, or certified historic lighting application) using a lamp that meets the requirements of 

this subsection. 

‘‘(iii) ADDITIONAL CRITERION.—To grant an exemption for a product under this subparagraph, the Secretary shall include, as an additional criterion, that 

the exempted product is unlikely to be used in a general service lighting application. 

‘‘(E) EXTENSION OF COVERAGE.—

‘‘(i) PETITION.—Any person may petition the Secretary to establish standards for lamp shapes or bases 

that are excluded from the definition of general service 

lamps. 

‘‘(ii) INCREASED SALES OF EXEMPTED LAMPS.—The petition shall include evidence that the availability or 

sales of exempted incandescent lamps have increased 

significantly since the date on which the standards on 

general service incandescent lamps were established. 

‘‘(iii) CRITERIA.—The Secretary shall grant a petition 

under clause (i) if the Secretary finds that—

‘‘(I) the petition presents evidence that demonstrates that commercial availability or sales of 

exempted incandescent lamp types have increased 

significantly since the standards on general service lamps were established and likely are being 

widely used in general lighting applications; and 

‘‘(II) significant energy savings could be 

achieved by covering exempted products, as determined by the Secretary based on sales data provided to the Secretary from manufacturers and 

importers. 

‘‘(iv) NO PRESUMPTION.—The grant of a petition 

under this subparagraph shall create no presumption 

with respect to the determination of the Secretary 

with respect to any criteria under a rulemaking conducted under this section. 


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‘‘(v) EXPEDITED PROCEEDING.—If the Secretary 

grants a petition for a lamp shape or base under this 

subparagraph, the Secretary shall—

‘‘(I) conduct a rulemaking to determine standards for the exempted lamp shape or base; and 

‘‘(II) complete the rulemaking not later than 18 

months after the date on which notice is provided 

granting the petition. 

‘‘(F) DEFINITION OF EFFECTIVE DATE.—In this paragraph, 

except as otherwise provided in a table contained in subparagraph (A), the term ‘effective date’ means the last day 

of the month specified in the table that follows October 24, 

1992.’’; 

(iii) in paragraph (5), in the first sentence, by striking ‘‘and general service incandescent lamps’’; 

(iv) by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively; and 

(v) by inserting after paragraph (5) the following: 

‘‘(6) STANDARDS FOR GENERAL SERVICE LAMPS.—

‘‘(A) RULEMAKING BEFORE JANUARY 1, 2014.—

‘‘(i) IN GENERAL.—Not later than January 1, 2014, 

the Secretary shall initiate a rulemaking procedure to 

determine whether—

‘‘(I) standards in effect for general service lamps 

should be amended to establish more stringent 

standards than the standards specified in paragraph (1)(A); and 

‘‘(II) the exemptions for certain incandescent 

lamps should be maintained or discontinued 

based, in part, on exempted lamp sales collected 

by the Secretary from manufacturers. 

‘‘(ii) SCOPE.—The rulemaking—

‘‘(I) shall not be limited to incandescent lamp 

technologies; and 

‘‘(II) shall include consideration of a minimum 

standard of 45 lumens per watt for general service 

lamps. 

‘‘(iii) AMENDED STANDARDS.—If the Secretary determines that the standards in effect for general service 

incandescent lamps should be amended, the Secretary 

shall publish a final rule not later than January 1, 

2017, with an effective date that is not earlier than 3 

years after the date on which the final rule is published. 

‘‘(iv) PHASED-IN EFFECTIVE DATES.—The Secretary 

shall consider phased-in effective dates under this subparagraph after considering—

‘‘(I) the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, 

workers, and raw materials; and 

‘‘(II) the time needed to work with retailers and 

lighting designers to revise sales and marketing 

strategies. 


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‘‘(v) BACKSTOP REQUIREMENT.—If the Secretary fails 

to complete a rulemaking in accordance with clauses 

(i) through (iv) or if the final rule does not produce 

savings that are greater than or equal to the savings 

from a minimum efficacy standard of 45 lumens per 

watt, effective beginning January 1, 2020, the Secretary shall prohibit the sale of any general service 

lamp that does not meet a minimum efficacy standard 

of 45 lumens per watt. 

‘‘(vi) STATE PREEMPTION.—Neither section 327(b) nor 

any other provision of law shall preclude California or 

Nevada from adopting, effective beginning on or after 

January 1, 2018—

‘‘(I) a final rule adopted by the Secretary in accordance with clauses (i) through (iv); 

‘‘(II) if a final rule described in subclause (I) has 

not been adopted, the backstop requirement under 

clause (v); or 

‘‘(III) in the case of California, if a final rule described in subclause (I) has not been adopted, any 

California regulations relating to these covered 

products adopted pursuant to State statute in effect as of the date of enactment of the Energy 

Independence and Security Act of 2007. 

‘‘(B) RULEMAKING BEFORE JANUARY 1, 2020.—

‘‘(i) IN GENERAL.—Not later than January 1, 2020, 

the Secretary shall initiate a rulemaking procedure to 

determine whether—

‘‘(I) standards in effect for general service incandescent lamps should be amended to reflect lumen 

ranges with more stringent maximum wattage 

than the standards specified in paragraph (1)(A); 

and 

‘‘(II) the exemptions for certain incandescent 

lamps should be maintained or discontinued 

based, in part, on exempted lamp sales data collected by the Secretary from manufacturers. 

‘‘(ii) SCOPE.—The rulemaking shall not be limited to 

incandescent lamp technologies. 

‘‘(iii) AMENDED STANDARDS.—If the Secretary determines that the standards in effect for general service 

incandescent lamps should be amended, the Secretary 

shall publish a final rule not later than January 1, 

2022, with an effective date that is not earlier than 3 

years after the date on which the final rule is published. 

‘‘(iv) PHASED-IN EFFECTIVE DATES.—The Secretary 

shall consider phased-in effective dates under this subparagraph after considering—

‘‘(I) the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, 

workers, and raw materials; and 


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‘‘(II) the time needed to work with retailers and 

lighting designers to revise sales and marketing 

strategies.’’; and 

(B) in subsection (l), by adding at the end the following: 

‘‘(4) ENERGY EFFICIENCY STANDARDS FOR CERTAIN LAMPS.—

‘‘(A) IN GENERAL.—The Secretary shall prescribe an energy efficiency standard for rough service lamps, vibration 

service lamps, 3-way incandescent lamps, 2,601–3,300 

lumen general service incandescent lamps, and shatter-resistant lamps only in accordance with this paragraph. 

‘‘(B) BENCHMARKS.—Not later than 1 year after the date 

of enactment of this paragraph, the Secretary, in consultation with the National Electrical Manufacturers Association, shall—

‘‘(i) collect actual data for United States unit sales 

for each of calendar years 1990 through 2006 for each 

of the 5 types of lamps described in subparagraph (A) 

to determine the historical growth rate of the type of 

lamp; and 

‘‘(ii) construct a model for each type of lamp based 

on coincident economic indicators that closely match 

the historical annual growth rate of the type of lamp 

to provide a neutral comparison benchmark to model 

future unit sales after calendar year 2006. 

‘‘(C) ACTUAL SALES DATA.—

‘‘(i) IN GENERAL.—Effective for each of calendar 

years 2010 through 2025, the Secretary, in consultation with the National Electrical Manufacturers Association, shall—

‘‘(I) collect actual United States unit sales data 

for each of 5 types of lamps described in subparagraph (A); and 

‘‘(II) not later than 90 days after the end of each 

calendar year, compare the lamp sales in that 

year with the sales predicted by the comparison 

benchmark for each of the 5 types of lamps described in subparagraph (A). 

‘‘(ii) CONTINUATION OF TRACKING.—

‘‘(I) DETERMINATION.—Not later than January 1, 

2023, the Secretary shall determine if actual sales 

data should be tracked for the lamp types described in subparagraph (A) after calendar year 

2025. 

‘‘(II) CONTINUATION.—If the Secretary finds that 

the market share of a lamp type described in subparagraph (A) could significantly erode the market 

share for general service lamps, the Secretary 

shall continue to track the actual sales data for 

the lamp type. 

‘‘(D) ROUGH SERVICE LAMPS.—

‘‘(i) IN GENERAL.—Effective beginning with the first 

year that the reported annual sales rate for rough 

service lamps demonstrates actual unit sales of rough 

service lamps that achieve levels that are at least 100 


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100 

percent higher than modeled unit sales for that same 

year, the Secretary shall— ‘‘(I) not later than 90 days after the end of the 

previous calendar year, issue a finding that the 

index has been exceeded; and ‘‘(II) not later than the date that is 1 year after 

the end of the previous calendar year, complete an 

accelerated rulemaking to establish an energy 

conservation standard for rough service lamps. ‘‘(ii) BACKSTOP REQUIREMENT.—If the Secretary fails 

to complete an accelerated rulemaking in accordance 

with clause (i)(II), effective beginning 1 year after the 

date of the issuance of the finding under clause (i)(I), 

the Secretary shall require rough service lamps to— ‘‘(I) have a shatter-proof coating or equivalent 

technology that is compliant with NSF/ANSI 51 

and is designed to contain the glass if the glass 

envelope of the lamp is broken and to provide effective containment over the life of the lamp; ‘‘(II) have a maximum 40-watt limitation; and 

‘‘(III) be sold at retail only in a package containing 1 lamp. ‘‘(E) VIBRATION SERVICE LAMPS.— ‘‘(i) IN GENERAL.—Effective beginning with the first 

year that the reported annual sales rate for vibration 

service lamps demonstrates actual unit sales of vibration service lamps that achieve levels that are at least 

100 percent higher than modeled unit sales for that 

same year, the Secretary shall— ‘‘(I) not later than 90 days after the end of the 

previous calendar year, issue a finding that the 

index has been exceeded; and ‘‘(II) not later than the date that is 1 year after 

the end of the previous calendar year, complete an 

accelerated rulemaking to establish an energy 

conservation standard for vibration service lamps. 

‘‘(ii) BACKSTOP REQUIREMENT.—If the Secretary fails 

to complete an accelerated rulemaking in accordance 

with clause (i)(II), effective beginning 1 year after the 

date of the issuance of the finding under clause (i)(I), 

the Secretary shall require vibration service lamps 

to— ‘‘(I) have a maximum 40-watt limitation; and 

‘‘(II) be sold at retail only in a package containing 1 lamp. ‘‘(F) 3-WAY INCANDESCENT LAMPS.—

‘‘(i) IN GENERAL.—Effective beginning with the first 

year that the reported annual sales rate for 3-way incandescent lamps demonstrates actual unit sales of 3- 

way incandescent lamps that achieve levels that are at 

least 100 percent higher than modeled unit sales for 

that same year, the Secretary shall— ‘‘(I) not later than 90 days after the end of the 

previous calendar year, issue a finding that the 

index has been exceeded; and 


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‘‘(II) not later than the date that is 1 year after 

the end of the previous calendar year, complete an 

accelerated rulemaking to establish an energy 

conservation standard for 3-way incandescent 

lamps. 

‘‘(ii) BACKSTOP REQUIREMENT.—If the Secretary fails 

to complete an accelerated rulemaking in accordance 

with clause (i)(II), effective beginning 1 year after the 

date of issuance of the finding under clause (i)(I), the 

Secretary shall require that—

‘‘(I) each filament in a 3-way incandescent lamp 

meet the new maximum wattage requirements for 

the respective lumen range established under subsection (i)(1)(A); and 

‘‘(II) 3-way lamps be sold at retail only in a 

package containing 1 lamp. 

‘‘(G) 2,601–3,300 LUMEN GENERAL SERVICE INCANDESCENT LAMPS.—Effective beginning with the first year that 

the reported annual sales rate demonstrates actual unit 

sales of 2,601–3,300 lumen general service incandescent 

lamps in the lumen range of 2,601 through 3,300 lumens 

(or, in the case of a modified spectrum, in the lumen range 

of 1,951 through 2,475 lumens) that achieve levels that are 

at least 100 percent higher than modeled unit sales for 

that same year, the Secretary shall impose—

‘‘(i) a maximum 95-watt limitation on general service incandescent lamps in the lumen range of 2,601 

through 3,300 lumens; and 

‘‘(ii) a requirement that those lamps be sold at retail 

only in a package containing 1 lamp. 

‘‘(H) SHATTER-RESISTANT LAMPS.—

‘‘(i) IN GENERAL.—Effective beginning with the first 

year that the reported annual sales rate for shatter-resistant lamps demonstrates actual unit sales of shatter-resistant lamps that achieve levels that are at 

least 100 percent higher than modeled unit sales for 

that same year, the Secretary shall—

‘‘(I) not later than 90 days after the end of the 

previous calendar year, issue a finding that the 

index has been exceeded; and 

‘‘(II) not later than the date that is 1 year after 

the end of the previous calendar year, complete an 

accelerated rulemaking to establish an energy 

conservation standard for shatter-resistant lamps. 

‘‘(ii) BACKSTOP REQUIREMENT.—If the Secretary fails 

to complete an accelerated rulemaking in accordance 

with clause (i)(II), effective beginning 1 year after the 

date of issuance of the finding under clause (i)(I), the 

Secretary shall impose—

‘‘(I) a maximum wattage limitation of 40 watts 

on shatter resistant lamps; and 

‘‘(II) a requirement that those lamps be sold at 

retail only in a package containing 1 lamp. 

‘‘(I) RULEMAKINGS BEFORE JANUARY 1, 2025.—


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‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

if the Secretary issues a final rule prior to January 1, 

2025, establishing an energy conservation standard for 

any of the 5 types of lamps for which data collection 

is required under any of subparagraphs (D) through 

(G), the requirement to collect and model data for that 

type of lamp shall terminate unless, as part of the 

rulemaking, the Secretary determines that continued 

tracking is necessary. 

‘‘(ii) BACKSTOP REQUIREMENT.—If the Secretary imposes a backstop requirement as a result of a failure 

to complete an accelerated rulemaking in accordance 

with clause (i)(II) of any of subparagraphs (D) through 

(G), the requirement to collect and model data for the 

applicable type of lamp shall continue for an additional 2 years after the effective date of the backstop 

requirement.’’. 

(b) CONSUMER EDUCATION AND LAMP LABELING.—Section 

324(a)(2)(C) of the Energy Policy and Conservation Act (42 U.S.C. 

6294(a)(2)(C)) is amended by adding at the end the following: 

‘‘(iii) RULEMAKING TO CONSIDER EFFECTIVENESS OF

LAMP LABELING.—

‘‘(I) IN GENERAL.—Not later than 1 year after 

the date of enactment of this clause, the Commission shall initiate a rulemaking to consider—

‘‘(aa) the effectiveness of current lamp labeling for power levels or watts, light output or 

lumens, and lamp lifetime; and 

‘‘(bb) alternative labeling approaches that 

will help consumers to understand new highefficiency lamp products and to base the purchase decisions of the consumers on the most 

appropriate source that meets the requirements of the consumers for lighting level, 

light quality, lamp lifetime, and total lifecycle 

cost. 

‘‘(II) COMPLETION.—The Commission shall—

‘‘(aa) complete the rulemaking not later 

than the date that is 30 months after the date 

of enactment of this clause; and 

‘‘(bb) consider reopening the rulemaking not 

later than 180 days before the effective dates 

of the standards for general service incandescent lamps established under section 

325(i)(1)(A), if the Commission determines 

that further labeling changes are needed to 

help consumers understand lamp alternatives.’’. 

(c) MARKET ASSESSMENTS AND CONSUMER AWARENESS PROGRAM.—

(1) IN GENERAL.—In cooperation with the Administrator of 

the Environmental Protection Agency, the Secretary of Commerce, the Federal Trade Commission, lighting and retail industry associations, energy efficiency organizations, and any 


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other entities that the Secretary of Energy determines to be 

appropriate, the Secretary of Energy shall—

(A) conduct an annual assessment of the market for general service lamps and compact fluorescent lamps—

(i) to identify trends in the market shares of lamp 

types, efficiencies, and light output levels purchased 

by residential and nonresidential consumers; and 

(ii) to better understand the degree to which consumer decisionmaking is based on lamp power levels 

or watts, light output or lumens, lamp lifetime, and 

other factors, including information required on labels 

mandated by the Federal Trade Commission; 

(B) provide the results of the market assessment to the 

Federal Trade Commission for consideration in the rulemaking described in section 324(a)(2)(C)(iii) of the Energy 

Policy and Conservation Act (42 U.S.C. 6294(a)(2)(C)(iii)); 

and 

(C) in cooperation with industry trade associations, 

lighting industry members, utilities, and other interested 

parties, carry out a proactive national program of consumer awareness, information, and education that broadly 

uses the media and other effective communication techniques over an extended period of time to help consumers 

understand the lamp labels and make energy-efficient 

lighting choices that meet the needs of consumers. 

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this subsection $10,000,000 for 

each of fiscal years 2009 through 2012. 

(d) GENERAL RULE OF PREEMPTION FOR ENERGY CONSERVATION

STANDARDS BEFORE FEDERAL STANDARD BECOMES EFFECTIVE FOR

A PRODUCT.—Section 327(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6297(b)(1)) is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

(2) by inserting ‘‘or’’ after the semicolon at the end; and 

(3) by adding at the end the following: 

‘‘(B) in the case of any portion of any regulation that establishes requirements for general service incandescent lamps, intermediate base incandescent lamps, or candelabra base lamps, 

was enacted or adopted by the States of California or Nevada 

before December 4, 2007, except that—

‘‘(i) the regulation adopted by the California Energy 

Commission with an effective date of January 1, 2008, 

shall only be effective until the effective date of the Federal standard for the applicable lamp category under subparagraphs (A), (B), and (C) of section 325(i)(1); 

‘‘(ii) the States of California and Nevada may, at any 

time, modify or adopt a State standard for general service 

lamps to conform with Federal standards with effective 

dates no earlier than 12 months prior to the Federal effective dates prescribed under subparagraphs (A), (B), and 

(C) of section 325(i)(1), at which time any prior regulations 

adopted by the States of California or Nevada shall no 

longer be effective; and 


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‘‘(iii) all other States may, at any time, modify or adopt 

a State standard for general service lamps to conform with 

Federal standards and effective dates.’’. 

(e) PROHIBITED ACTS.—Section 332(a) of the Energy Policy and 

Conservation Act (42 U.S.C. 6302(a)) is amended—

(1) in paragraph (4), by striking ‘‘or’’ at the end; 

(2) in paragraph (5), by striking the period at the end and 

inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(6) for any manufacturer, distributor, retailer, or private labeler to distribute in commerce an adapter that—

‘‘(A) is designed to allow an incandescent lamp that does 

not have a medium screw base to be installed into a fixture or lampholder with a medium screw base socket; and 

‘‘(B) is capable of being operated at a voltage range at 

least partially within 110 and 130 volts.’’. 

(f) ENFORCEMENT.—Section 334 of the Energy Policy and Conservation Act (42 U.S.C. 6304) is amended by inserting after the 

second sentence the following: ‘‘Any such action to restrain any person from distributing in commerce a general service incandescent 

lamp that does not comply with the applicable standard established 

under section 325(i) or an adapter prohibited under section 

332(a)(6) may also be brought by the attorney general of a State 

in the name of the State.’’. 

(g) RESEARCH AND DEVELOPMENT PROGRAM.—

(1) IN GENERAL.—The Secretary may carry out a lighting 

technology research and development program—

(A) to support the research, development, demonstration, 

and commercial application of lamps and related technologies sold, offered for sale, or otherwise made available 

in the United States; and 

(B) to assist manufacturers of general service lamps in 

the manufacturing of general service lamps that, at a minimum, achieve the wattage requirements imposed as a result of the amendments made by subsection (a). 

(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection $10,000,000 

for each of fiscal years 2008 through 2013. 

(3) TERMINATION OF AUTHORITY.—The program under this 

subsection shall terminate on September 30, 2015. 

(h) REPORTS TO CONGRESS.—

(1) REPORT ON MERCURY USE AND RELEASE.—Not later than 

1 year after the date of enactment of this Act, the Secretary 

, in cooperation with the Administrator of the Environmental 

Protection Agency, shall submit to Congress a report describing 

recommendations relating to the means by which the Federal 

Government may reduce or prevent the release of mercury during the manufacture, transportation, storage, or disposal of 

light bulbs. 

(2) REPORT ON RULEMAKING SCHEDULE.—Beginning on July 

1, 2013 and semiannually through July 1, 2016, the Secretary 

shall submit to the Committee on Energy and Commerce of the 

House of Representatives and the Committee on Energy and 

Natural Resources of the Senate a report on—


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(A) whether the Secretary will meet the deadlines for 

the rulemakings required under this section; 

(B) a description of any impediments to meeting the 

deadlines; and 

(C) a specific plan to remedy any failures, including recommendations for additional legislation or resources. 

(3) NATIONAL ACADEMY REVIEW.—

(A) IN GENERAL.—Not later than December 31, 2009, the 

Secretary shall enter into an arrangement with the National Academy of Sciences to provide a report by December 31, 2013, and an updated report by July 31, 2015. The 

report should include—

(i) the status of advanced solid state lighting research, development, demonstration and commercialization; 

(ii) the impact on the types of lighting available to 

consumers of an energy conservation standard requiring a minimum of 45 lumens per watt for general 

service lighting effective in 2020; and 

(iii) the time frame for the commercialization of 

lighting that could replace current incandescent and 

halogen incandescent lamp technology and any other 

new technologies developed to meet the minimum 

standards required under subsection (a) (3) of this section. 

(B) REPORTS.—The reports shall be transmitted to the 

Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural 

Resources of the Senate. 

SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS. 

(a) DEFINITIONS.—Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by section 316(c)(1)(D)) 

is amended—

(1) in paragraph (30)(C)(ii)—

(A) in the matter preceding subclause (I)—

(i) by striking ‘‘or similar bulb shapes (excluding ER 

or BR)’’ and inserting ‘‘ER, BR, BPAR, or similar bulb 

shapes’’; and 

(ii) by striking ‘‘2.75’’ and inserting ‘‘2.25’’; and 

(B) by striking ‘‘is either—’’ and all that follows through 

subclause (II) and inserting ‘‘has a rated wattage that is 

40 watts or higher’’; and 

(2) by adding at the end the following: 

‘‘(54) BPAR INCANDESCENT REFLECTOR LAMP.—The term 

‘BPAR incandescent reflector lamp’ means a reflector lamp as 

shown in figure C78.21–278 on page 32 of ANSI C78.21–2003. 

‘‘(55) BR INCANDESCENT REFLECTOR LAMP; BR30; BR40.—

‘‘(A) BR INCANDESCENT REFLECTOR LAMP.—The term ‘BR 

incandescent reflector lamp’ means a reflector lamp that 

has—

‘‘(i) a bulged section below the major diameter of the 

bulb and above the approximate baseline of the bulb, 

as shown in figure 1 (RB) on page 7 of ANSI C79.1–

1994, incorporated by reference in section 430.22 of 


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title 10, Code of Federal Regulations (as in effect on 

the date of enactment of this paragraph); and 

‘‘(ii) a finished size and shape shown in ANSI 

C78.21–1989, including the referenced reflective characteristics in part 7 of ANSI C78.21–1989, incorporated by reference in section 430.22 of title 10, Code 

of Federal Regulations (as in effect on the date of enactment of this paragraph). 

‘‘(B) BR30.—The term ‘BR30’ means a BR incandescent 

reflector lamp with a diameter of 30/8ths of an inch. 

‘‘(C) BR40.—The term ‘BR40’ means a BR incandescent 

reflector lamp with a diameter of 40/8ths of an inch. 

‘‘(56) ER INCANDESCENT REFLECTOR LAMP; ER30; ER40.—

‘‘(A) ER INCANDESCENT REFLECTOR LAMP.—The term ‘ER 

incandescent reflector lamp’ means a reflector lamp that 

has—

‘‘(i) an elliptical section below the major diameter of 

the bulb and above the approximate baseline of the 

bulb, as shown in figure 1 (RE) on page 7 of ANSI 

C79.1–1994, incorporated by reference in section 

430.22 of title 10, Code of Federal Regulations (as in 

effect on the date of enactment of this paragraph); and 

‘‘(ii) a finished size and shape shown in ANSI 

C78.21–1989, incorporated by reference in section 

430.22 of title 10, Code of Federal Regulations (as in 

effect on the date of enactment of this paragraph). 

‘‘(B) ER30.—The term ‘ER30’ means an ER incandescent 

reflector lamp with a diameter of 30/8ths of an inch. 

‘‘(C) ER40.—The term ‘ER40’ means an ER incandescent 

reflector lamp with a diameter of 40/8ths of an inch. 

‘‘(57) R20 INCANDESCENT REFLECTOR LAMP.—The term ‘R20 

incandescent reflector lamp’ means a reflector lamp that has a 

face diameter of approximately 2.5 inches, as shown in figure 

1(R) on page 7 of ANSI C79.1–1994.’’. 

(b) STANDARDS FOR FLUORESCENT LAMPS AND INCANDESCENT REFLECTOR LAMPS.—Section 325(i) of the Energy Policy and Conservation Act (42 U.S.C. 6995(i)) is amended by striking paragraph 

(1) and inserting the following: 

‘‘(1) STANDARDS.—

‘‘(A) DEFINITION OF EFFECTIVE DATE.—In this paragraph 

(other than subparagraph (D)), the term ‘effective date’

means, with respect to each type of lamp specified in a 

table contained in subparagraph (B), the last day of the 

period of months corresponding to that type of lamp (as 

specified in the table) that follows October 24, 1992. 

‘‘(B) MINIMUM STANDARDS.—Each of the following general service fluorescent lamps and incandescent reflector 

lamps manufactured after the effective date specified in 

the tables contained in this paragraph shall meet or exceed the following lamp efficacy and CRI standards: 


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‘‘FLUORESCENT LAMPS 

Lamp Type 

Nominal 

Lamp 

Wattage 

Minimum 

CRI 

Minimum Average 

Lamp Efficacy 

(LPW) 

Effective 

Date (Period of 

Months) 

4-foot medium bi-pin .... >35 W 69 75.0 36 

≤35 W 45 75.0 36 

2-foot U-shaped ............. >35 W 69 68.0 36 

≤35 W 45 64.0 36 

8-foot slimline ............... 65 W 69 80.0 18 

≤65 W 45 80.0 18 

8-foot high output ......... >100 W 69 80.0 18 

≤100 W 45 80.0 18 

‘‘INCANDESCENT REFLECTOR LAMPS 

Nominal Lamp Wattage 

Minimum Average 

Lamp Efficacy 

(LPW) 

Effective 

Date (Period of 

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 DIAME- TER.—The standards specified in subparagraph (B) 

shall apply with respect to incandescent reflector 

lamps with a diameter of more than 2.25 inches, but 

not more than 2.75 inches, on and after the later of 

January 1, 2008, or the date that is 180 days after the 

date of enactment of the Energy Independence and Security Act of 2007.’’. 

SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY SYSTEMS. 

(a) ESTIMATE OF ENERGY PERFORMANCE IN PROSPECTUS.—Section 

3307(b) of title 40, United States Code, is amended—


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(1) by striking ‘‘and’’ at the end of paragraph (5); 

(2) by striking the period at the end of paragraph (6) and inserting ‘‘; and’’; and 

(3) by inserting after paragraph (6) the following: 

‘‘(7) with respect to any prospectus for the construction, alteration, or acquisition of any building or space to be leased, 

an estimate of the future energy performance of the building 

or space and a specific description of the use of energy efficient 

and renewable energy systems, including photovoltaic systems, 

in carrying out the project.’’. (b) MINIMUM PERFORMANCE REQUIREMENTS FOR LEASED

SPACE.—Section 3307 of such of title is amended—

(1) by redesignating subsections (f) and (g) as subsections (g) 

and (h), respectively; and 

(2) by inserting after subsection (e) the following: 

‘‘(f) MINIMUM PERFORMANCE REQUIREMENTS FOR LEASED

SPACE.—With respect to space to be leased, the Administrator shall 

include, to the maximum extent practicable, minimum performance 

requirements requiring energy efficiency and the use of renewable 

energy.’’. 

(c) USE OF ENERGY EFFICIENT LIGHTING FIXTURES AND BULBS.— (1) IN GENERAL.—Chapter 33 of such title is amended— (A) by redesignating sections 3313, 3314, and 3315 as 

sections 3314, 3315, and 3316, respectively; and 

(B) by inserting after section 3312 the following: 

‘‘§ 3313. Use of energy efficient lighting fixtures and bulbs 

‘‘(a) CONSTRUCTION, ALTERATION, AND ACQUISITION OF PUBLIC

BUILDINGS.—Each public building constructed, altered, or acquired 

by the Administrator of General Services shall be equipped, to the 

maximum extent feasible as determined by the Administrator, with 

lighting fixtures and bulbs that are energy efficient. ‘‘(b) MAINTENANCE OF PUBLIC BUILDINGS.—Each lighting fixture 

or bulb that is replaced by the Administrator in the normal course 

of maintenance of public buildings shall be replaced, to the maximum extent feasible, with a lighting fixture or bulb that is energy 

efficient. 

‘‘(c) CONSIDERATIONS.—In making a determination under this 

section concerning the feasibility of installing a lighting fixture or 

bulb that is energy efficient, the Administrator shall consider—

‘‘(1) the life-cycle cost effectiveness of the fixture or bulb; 

‘‘(2) the compatibility of the fixture or bulb with existing 

equipment; 

‘‘(3) whether use of the fixture or bulb could result in interference with productivity; 

‘‘(4) the aesthetics relating to use of the fixture or bulb; and 

‘‘(5) such other factors as the Administrator determines appropriate. 

‘‘(d) ENERGY STAR.—A lighting fixture or bulb shall be treated as 

being energy efficient for purposes of this section if—

‘‘(1) the fixture or bulb is certified under the Energy Star 

program established by section 324A of the Energy Policy and 

Conservation Act (42 U.S.C. 6294a); 

‘‘(2) in the case of all light-emitting diode (LED) luminaires, 

lamps, and systems whose efficacy (lumens per watt) and Color 


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Rendering Index (CRI) meet the Department of Energy requirements for minimum luminaire efficacy and CRI for the 

Energy Star certification, as verified by an independent thirdparty testing laboratory that the Administrator and the Secretary of Energy determine conducts its tests according to the 

procedures and recommendations of the Illuminating Engineering Society of North America, even if the luminaires, lamps, 

and systems have not received such certification; or 

‘‘(3) the Administrator and the Secretary of Energy have otherwise determined that the fixture or bulb is energy efficient. 

‘‘(e) ADDITIONAL ENERGY EFFICIENT LIGHTING DESIGNATIONS.—

The Administrator of the Environmental Protection Agency and the 

Secretary of Energy shall give priority to establishing Energy Star 

performance criteria or Federal Energy Management Program designations for additional lighting product categories that are appropriate for use in public buildings. 

‘‘(f) GUIDELINES.—The Administrator shall develop guidelines for 

the use of energy efficient lighting technologies that contain mercury in child care centers in public buildings. 

‘‘(g) APPLICABILITY OF BUY AMERICAN ACT.—Acquisitions carried 

out pursuant to this section shall be subject to the requirements of 

the Buy American Act (41 U.S.C. 10c et seq.). 

‘‘(h) EFFECTIVE DATE.—The requirements of subsections (a) and 

(b) shall take effect one year after the date of enactment of this 

subsection.’’. 

(2) CLERICAL AMENDMENT.—The analysis for such chapter is 

amended by striking the items relating to sections 3313, 3314, 

and 3315 and inserting the following: 

‘‘3313. Use of energy efficient lighting fixtures and bulbs. 

‘‘3314. Delegation. 

‘‘3315. Report to Congress. 

‘‘3316. Certain authority not affected.’’. 

(d) EVALUATION FACTOR.—Section 3310 of such title is amended—

(1) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and 

(2) by inserting after paragraph (2) the following: 

‘‘(3) shall include in the solicitation for any lease requiring 

a prospectus under section 3307 an evaluation factor considering the extent to which the offeror will promote energy efficiency and the use of renewable energy;’’. 

SEC. 324. METAL HALIDE LAMP FIXTURES. 

(a) DEFINITIONS.—Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by section 322(a)(2)) is 

amended by adding at the end the following: 

‘‘(58) BALLAST.—The term ‘ballast’ means a device used with 

an electric discharge lamp to obtain necessary circuit conditions (voltage, current, and waveform) for starting and operating. 

‘‘(59) BALLAST EFFICIENCY.—

‘‘(A) IN GENERAL.—The term ‘ballast efficiency’ means, in 

the case of a high intensity discharge fixture, the efficiency 

of a lamp and ballast combination, expressed as a percentage, and calculated in accordance with the following formula: Efficiency = Pout/Pin. 


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‘‘(B) EFFICIENCY FORMULA.—For the purpose of subparagraph (A)—

‘‘(i) Pout shall equal the measured operating lamp 

wattage; 

‘‘(ii) Pin shall equal the measured operating input 

wattage; 

‘‘(iii) the lamp, and the capacitor when the capacitor 

is provided, shall constitute a nominal system in accordance with the ANSI Standard C78.43-2004; 

‘‘(iv) for ballasts with a frequency of 60 Hz, Pin and 

Pout shall be measured after lamps have been stabilized according to section 4.4 of ANSI Standard 

C82.6-2005 using a wattmeter with accuracy specified 

in section 4.5 of ANSI Standard C82.6-2005; and 

‘‘(v) for ballasts with a frequency greater than 60 

Hz, Pin and Pout shall have a basic accuracy of ± 0.5 

percent at the higher of—

‘‘(I) 3 times the output operating frequency of 

the ballast; or 

‘‘(II) 2 kHz for ballast with a frequency greater 

than 60 Hz. 

‘‘(C) MODIFICATION.—The Secretary may, by rule, modify 

the definition of ‘ballast efficiency’ if the Secretary determines that the modification is necessary or appropriate to 

carry out the purposes of this Act. 

‘‘(60) ELECTRONIC BALLAST.—The term ‘electronic ballast’

means a device that uses semiconductors as the primary 

means to control lamp starting and operation. 

‘‘(61) GENERAL LIGHTING APPLICATION.—The term ‘general 

lighting application’ means lighting that provides an interior or 

exterior area with overall illumination. 

‘‘(62) METAL HALIDE BALLAST.—The term ‘metal halide ballast’ means a ballast used to start and operate metal halide 

lamps. 

‘‘(63) METAL HALIDE LAMP.—The term ‘metal halide lamp’

means a high intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and 

their products of dissociation, possibly in combination with metallic vapors. 

‘‘(64) METAL HALIDE LAMP FIXTURE.—The term ‘metal halide 

lamp fixture’ means a light fixture for general lighting application designed to be operated with a metal halide lamp and a 

ballast for a metal halide lamp. 

‘‘(65) PROBE-START METAL HALIDE BALLAST.—The term ‘probestart metal halide ballast’ means a ballast that—

‘‘(A) starts a probe-start metal halide lamp that contains 

a third starting electrode (probe) in the arc tube; and 

‘‘(B) does not generally contain an igniter but instead 

starts lamps with high ballast open circuit voltage. 

‘‘(66) PULSE-START METAL HALIDE BALLAST.—

‘‘(A) IN GENERAL.—The term ‘pulse-start metal halide 

ballast’ means an electronic or electromagnetic ballast that 

starts a pulse-start metal halide lamp with high voltage 

pulses. 


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‘‘(B) STARTING PROCESS.—For the purpose of subparagraph (A)— ‘‘(i) lamps shall be started by first providing a high 

voltage pulse for ionization of the gas to produce a 

glow discharge; and ‘‘(ii) to complete the starting process, power shall be 

provided by the ballast to sustain the discharge 

through the glow-to-arc transition.’’. (b) COVERAGE.—Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)) is amended— (1) by redesignating paragraph (19) as paragraph (20); and 

(2) by inserting after paragraph (18) the following: 

‘‘(19) Metal halide lamp fixtures.’’. (c) TEST PROCEDURES.—Section 323(b) of the Energy Policy and 

Conservation Act (42 U.S.C. 6293(b)) (as amended by section 

301(b)) is amended by adding at the end the following: 

‘‘(18) METAL HALIDE LAMP BALLASTS.—Test procedures for 

metal halide lamp ballasts shall be based on ANSI Standard 

C82.6-2005, entitled ‘Ballasts for High Intensity Discharge 

Lamps—Method of Measurement’.’’. 

(d) LABELING.—Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended— (1) by redesignating subparagraphs (C) through (G) as subparagraphs (D) through (H), respectively; and 

(2) by inserting after subparagraph (B) the following: ‘‘(C) METAL HALIDE LAMP FIXTURES.— ‘‘(i) IN GENERAL.—The Commission shall issue labeling rules under this section applicable to the covered 

product specified in section 322(a)(19) and to which 

standards are applicable under section 325. ‘‘(ii) LABELING.—The rules shall provide that the labeling of any metal halide lamp fixture manufactured 

on or after the later of January 1, 2009, or the date 

that is 270 days after the date of enactment of this 

subparagraph, shall indicate conspicuously, in a manner prescribed by the Commission under subsection (b) 

by July 1, 2008, a capital letter ‘E’ printed within a 

circle on the packaging of the fixture, and on the ballast contained in the fixture.’’. 

(e) STANDARDS.—Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) (as amended by section 310) is amended—

(1) by redesignating subsection (hh) as subsection (ii); 

(2) by inserting after subsection (gg) the following: 

‘‘(hh) METAL HALIDE LAMP FIXTURES.—

‘‘(1) STANDARDS.—

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and (C), 

metal halide lamp fixtures designed to be operated with 

lamps rated greater than or equal to 150 watts but less 

than or equal to 500 watts shall contain— ‘‘(i) a pulse-start metal halide ballast with a minimum ballast efficiency of 88 percent; ‘‘(ii) a magnetic probe-start ballast with a minimum 

ballast efficiency of 94 percent; or ‘‘(iii) a nonpulse-start electronic ballast with—


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‘‘(I) a minimum ballast efficiency of 92 percent 

for wattages greater than 250 watts; and ‘‘(II) a minimum ballast efficiency of 90 percent 

for wattages less than or equal to 250 watts. ‘‘(B) EXCLUSIONS.—The standards established under subparagraph (A) shall not apply to— ‘‘(i) fixtures with regulated lag ballasts; 

‘‘(ii) fixtures that use electronic ballasts that operate 

at 480 volts; or ‘‘(iii) fixtures that— ‘‘(I) are rated only for 150 watt lamps; 

‘‘(II) are rated for use in wet locations, as specified by the National Electrical Code 2002, section 

410.4(A); and ‘‘(III) contain a ballast that is rated to operate 

at ambient air temperatures above 50o C, as specified by UL 1029–2001. 

‘‘(C) APPLICATION.—The standards established under 

subparagraph (A) shall apply to metal halide lamp fixtures 

manufactured on or after the later of— ‘‘(i) January 1, 2009; or 

‘‘(ii) the date that is 270 days after the date of enactment of this subsection. ‘‘(2) FINAL RULE BY JANUARY 1, 2012.— ‘‘(A) IN GENERAL.—Not later than January 1, 2012, the 

Secretary shall publish a final rule to determine whether 

the standards established under paragraph (1) should be 

amended. ‘‘(B) ADMINISTRATION.—The final rule shall—

‘‘(i) contain any amended standard; and 

‘‘(ii) apply to products manufactured on or after January 1, 2015. 

‘‘(3) FINAL RULE BY JANUARY 1, 2019.— ‘‘(A) IN GENERAL.—Not later than January 1, 2019, the 

Secretary shall publish a final rule to determine whether 

the standards then in effect should be amended. 

‘‘(B) ADMINISTRATION.—The final rule shall— ‘‘(i) contain any amended standards; and 

‘‘(ii) apply to products manufactured after January 

1, 2022. ‘‘(4) DESIGN AND PERFORMANCE REQUIREMENTS.—Notwithstanding any other provision of law, any standard established 

pursuant to this subsection may contain both design and performance requirements.’’; and 

(3) in paragraph (2) of subsection (ii) (as redesignated by 

paragraph (2)), by striking ‘‘(gg)’’ each place it appears and inserting ‘‘(hh)’’. 

(f) EFFECT ON OTHER LAW.—Section 327(c) of the Energy Policy 

and Conservation Act (42 U.S.C. 6297(c)) is amended—

(1) in paragraph (8)(B), by striking the period at the end and 

inserting ‘‘; and’’; and 

(2) by adding at the end the following: 

‘‘(9) is a regulation concerning metal halide lamp fixtures 

adopted by the California Energy Commission on or before 

January 1, 2011, except that—


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‘‘(A) if the Secretary fails to issue a final rule within 180 

days after the deadlines for rulemakings in section 

325(hh), notwithstanding any other provision of this section, preemption shall not apply to a regulation concerning 

metal halide lamp fixtures adopted by the California Energy Commission—

‘‘(i) on or before July 1, 2015, if the Secretary fails 

to meet the deadline specified in section 325(hh)(2); or 

‘‘(ii) on or before July 1, 2022, if the Secretary fails 

to meet the deadline specified in section 325(hh)(3).’’. 

SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC PRODUCTS. 

(a) IN GENERAL.—Section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) (as amended by section 324(d)) is 

amended—

(1) in paragraph (2), by adding at the end the following: 

‘‘(I) LABELING REQUIREMENTS.—

‘‘(i) IN GENERAL.—Subject to clauses (ii) through (iv), 

not later than 18 months after the date of issuance of 

applicable Department of Energy testing procedures, 

the Commission, in consultation with the Secretary 

and the Administrator of the Environmental Protection Agency (acting through the Energy Star program), 

shall, by regulation, prescribe labeling or other disclosure requirements for the energy use of—

‘‘(I) televisions; 

‘‘(II) personal computers; 

‘‘(III) cable or satellite set-top boxes; 

‘‘(IV) stand-alone digital video recorder boxes; 

and 

‘‘(V) personal computer monitors. 

‘‘(ii) ALTERNATE TESTING PROCEDURES.—In the absence of applicable testing procedures described in 

clause (i) for products described in subclauses (I) 

through (V) of that clause, the Commission may, by 

regulation, prescribe labeling or other disclosure requirements for a consumer product category described 

in clause (i) if the Commission—

‘‘(I) identifies adequate non-Department of Energy testing procedures for those products; and 

‘‘(II) determines that labeling of, or other disclosures relating to, those products is likely to assist 

consumers in making purchasing decisions. 

‘‘(iii) DEADLINE AND REQUIREMENTS FOR LABELING.—

‘‘(I) DEADLINE.—Not later than 18 months after 

the date of promulgation of any requirements 

under clause (i) or (ii), the Commission shall require labeling of, or other disclosure requirements 

for, electronic products described in clause (i). 

‘‘(II) REQUIREMENTS.—The requirements prescribed under clause (i) or (ii) may include specific 

requirements for each electronic product to be labeled with respect to the placement, size, and content of Energy Guide labels. 


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‘‘(iv) DETERMINATION OF FEASIBILITY.—Clause (i) or 

(ii) shall not apply in any case in which the Commission determines that labeling in accordance with this 

subsection— ‘‘(I) is not technologically or economically feasible; or ‘‘(II) is not likely to assist consumers in making 

purchasing decisions.’’; and 

(2) by adding at the end the following: 

‘‘(6) AUTHORITY TO INCLUDE ADDITIONAL PRODUCT CAT- EGORIES.—The Commission may, by regulation, require labeling or other disclosures in accordance with this subsection for 

any consumer product not specified in this subsection or section 322 if the Commission determines that labeling for the 

product is likely to assist consumers in making purchasing decisions.’’. (b) CONTENT OF LABEL.—Section 324(c) of the Energy Policy and 

Conservation Act (42 U.S.C. 6924(c)) is amended by adding at the 

end the following: ‘‘(9) DISCRETIONARY APPLICATION.—The Commission may 

apply paragraphs (1), (2), (3), (5), and (6) of this subsection to 

the labeling of any product covered by paragraph (2)(I) or (6) 

of subsection (a).’’. 

TITLE IV—ENERGY SAVINGS IN BUILDINGS AND 

INDUSTRY 

SEC. 401. DEFINITIONS. 

In this title: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of General Services. 

(2) ADVISORY COMMITTEE.—The term ‘‘Advisory Committee’’ means the Green Building Advisory Committee established 

under section 484. 

(3) COMMERCIAL DIRECTOR.—The term ‘‘Commercial Director’’ means the individual appointed to the position established 

under section 421. 

(4) CONSORTIUM.—The term ‘‘Consortium’’ means the HighPerformance Green Building Partnership Consortium created 

in response to section 436(c)(1) to represent the private sector 

in a public-private partnership to promote high-performance 

green buildings and zero-net-energy commercial buildings. 

(5) COST-EFFECTIVE LIGHTING TECHNOLOGY.— (A) IN GENERAL.—The term ‘‘cost-effective lighting technology’’ means a lighting technology that— (i) will result in substantial operational cost savings 

by ensuring an installed consumption of not more than 

1 watt per square foot; or 

(ii) is contained in a list under— (I) section 553 of Public Law 95–619 (42 U.S.C. 

8259b); 

(II) Federal acquisition regulation 23–203; and 

(III) is at least as energy-conserving as required 

by other provisions of this Act, including the requirements of this title and title III which shall be 

applicable to the extent that they would achieve 


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greater energy savings than provided under clause 

(i) or this clause. 

(B) INCLUSIONS.—The term ‘‘cost-effective lighting technology’’ includes— (i) lamps; 

(ii) ballasts; 

(iii) luminaires; 

(iv) lighting controls; 

(v) daylighting; and 

(vi) early use of other highly cost-effective lighting 

technologies. 

(6) COST-EFFECTIVE TECHNOLOGIES AND PRACTICES.—The 

term ‘‘cost-effective technologies and practices’’ means a technology or practice that—

(A) will result in substantial operational cost savings by 

reducing electricity or fossil fuel consumption, water, or 

other utility costs, including use of geothermal heat 

pumps; 

(B) complies with the provisions of section 553 of Public 

Law 95–619 (42 U.S.C. 8259b) and Federal acquisition regulation 23–203; and 

(C) is at least as energy and water conserving as required under this title, including sections 431 through 435, 

and title V, including section 511 through 525, which shall 

be applicable to the extent that they are more stringent or 

require greater energy or water savings than required by 

this section. 

(7) FEDERAL DIRECTOR.—The term ‘‘Federal Director’’ means 

the individual appointed to the position established under section 436(a). 

(8) FEDERAL FACILITY.—The term ‘‘Federal facility’’ means 

any building that is constructed, renovated, leased, or purchased in part or in whole for use by the Federal Government. 

(9) OPERATIONAL COST SAVINGS.—

(A) IN GENERAL.—The term ‘‘operational cost savings’’ means a reduction in end-use operational costs through 

the application of cost-effective technologies and practices 

or geothermal heat pumps, including a reduction in electricity consumption relative to consumption by the same 

customer or at the same facility in a given year, as defined 

in guidelines promulgated by the Administrator pursuant 

to section 329(b) of the Clean Air Act, that achieves cost 

savings sufficient to pay the incremental additional costs 

of using cost-effective technologies and practices including 

geothermal heat pumps by not later than the later of the 

date established under sections 431 through 434, or— (i) for cost-effective technologies and practices, the 

date that is 5 years after the date of installation; and 

(ii) for geothermal heat pumps, as soon as practical 

after the date of installation of the applicable geothermal heat pump. 

(B) INCLUSIONS.—The term ‘‘operational cost savings’’ includes savings achieved at a facility as a result of— (i) the installation or use of cost-effective technologies and practices; or 


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(ii) the planting of vegetation that shades the facility and reduces the heating, cooling, or lighting needs 

of the facility. 

(C) EXCLUSION.—The term ‘‘operational cost savings’’ does not include savings from measures that would likely 

be adopted in the absence of cost-effective technology and 

practices programs, as determined by the Administrator. 

(10) GEOTHERMAL HEAT PUMP.—The term ‘‘geothermal heat 

pump’’ means any heating or air conditioning technology 

that—(A) uses the ground or ground water as a thermal energy 

source to heat, or as a thermal energy sink to cool, a building; and 

(B) meets the requirements of the Energy Star program 

of the Environmental Protection Agency applicable to geothermal heat pumps on the date of purchase of the technology. 

(11) GSA FACILITY.— (A) IN GENERAL.—The term ‘‘GSA facility’’ means any 

building, structure, or facility, in whole or in part (including the associated support systems of the building, structure, or facility) that—

(i) is constructed (including facilities constructed for 

lease), renovated, or purchased, in whole or in part, by 

the Administrator for use by the Federal Government; 

or 

(ii) is leased, in whole or in part, by the Administrator for use by the Federal Government—

(I) except as provided in subclause (II), for a 

term of not less than 5 years; or 

(II) for a term of less than 5 years, if the Administrator determines that use of cost-effective 

technologies and practices would result in the payback of expenses. 

(B) INCLUSION.—The term ‘‘GSA facility’’ includes any 

group of buildings, structures, or facilities described in 

subparagraph (A) (including the associated energy-consuming support systems of the buildings, structures, and 

facilities). 

(C) EXEMPTION.—The Administrator may exempt from 

the definition of ‘‘GSA facility’’ under this paragraph a 

building, structure, or facility that meets the requirements 

of section 543(c) of Public Law 95–619 (42 U.S.C. 8253(c)). 

(12) HIGH-PERFORMANCE BUILDING.—The term ‘‘high performance building’’ means a building that integrates and optimizes on a life cycle basis all major high performance attributes, including energy conservation, environment, safety, 

security, durability, accessibility, cost-benefit, productivity, sustainability, functionality, and operational considerations. 

(13) HIGH-PERFORMANCE GREEN BUILDING.—The term ‘‘highperformance green building’’ means a high-performance building that, during its life-cycle, as compared with similar buildings (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data 

from the Energy Information Agency)—


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(A) reduces energy, water, and material resource use; 

(B) improves indoor environmental quality, including reducing indoor pollution, improving thermal comfort, and 

improving lighting and acoustic environments that affect 

occupant health and productivity; 

(C) reduces negative impacts on the environment 

throughout the life-cycle of the building, including air and 

water pollution and waste generation; 

(D) increases the use of environmentally preferable products, including biobased, recycled content, and nontoxic 

products with lower life-cycle impacts; 

(E) increases reuse and recycling opportunities; 

(F) integrates systems in the building; 

(G) reduces the environmental and energy impacts of 

transportation through building location and site design 

that support a full range of transportation choices for 

users of the building; and 

(H) considers indoor and outdoor effects of the building 

on human health and the environment, including—

(i) improvements in worker productivity; 

(ii) the life-cycle impacts of building materials and 

operations; and 

(iii) other factors that the Federal Director or the 

Commercial Director consider to be appropriate. 

(14) LIFE-CYCLE.—The term ‘‘life-cycle’’, with respect to a 

high-performance green building, means all stages of the useful life of the building (including components, equipment, systems, and controls of the building) beginning at conception of 

a high-performance green building project and continuing 

through site selection, design, construction, landscaping, commissioning, operation, maintenance, renovation, deconstruction 

or demolition, removal, and recycling of the high-performance 

green building. 

(15) LIFE-CYCLE ASSESSMENT.—The term ‘‘life-cycle assessment’’ means a comprehensive system approach for measuring 

the environmental performance of a product or service over the 

life of the product or service, beginning at raw materials acquisition and continuing through manufacturing, transportation, 

installation, use, reuse, and end-of-life waste management. 

(16) LIFE-CYCLE COSTING.—The term ‘‘life-cycle costing’’, with 

respect to a high-performance green building, means a technique of economic evaluation that—

(A) sums, over a given study period, the costs of initial 

investment (less resale value), replacements, operations 

(including energy use), and maintenance and repair of an 

investment decision; and 

(B) is expressed—

(i) in present value terms, in the case of a study period equivalent to the longest useful life of the building, determined by taking into consideration the typical life of such a building in the area in which the 

building is to be located; or 

(ii) in annual value terms, in the case of any other 

study period. 


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(17) OFFICE OF COMMERCIAL HIGH-PERFORMANCE GREEN

BUILDINGS.—The term ‘‘Office of Commercial High-Performance 

Green Buildings’’ means the Office of Commercial High-Performance Green Buildings established under section 421(a). 

(18) OFFICE OF FEDERAL HIGH-PERFORMANCE GREEN BUILDINGS.—The term ‘‘Office of Federal High-Performance Green 

Buildings’’ means the Office of Federal High-Performance 

Green Buildings established under section 436(a). 

(19) PRACTICES.—The term ‘‘practices’’ means design, financing, permitting, construction, commissioning, operation and 

maintenance, and other practices that contribute to achieving 

zero-net-energy buildings or facilities. 

(20) ZERO-NET-ENERGY COMMERCIAL BUILDING.—The term 

‘‘zero-net-energy commercial building’’ means a commercial 

building that is designed, constructed, and operated to—

(A) require a greatly reduced quantity of energy to operate; 

(B) meet the balance of energy needs from sources of energy that do not produce greenhouse gases; 

(C) therefore result in no net emissions of greenhouse 

gases; and 

(D) be economically viable. 

Subtitle A—Residential Building Efficiency 

SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM. 

(a) IN GENERAL.—Section 422 of the Energy Conservation and 

Production Act (42 U.S.C. 6872) is amended by striking ‘‘ appropriated $500,000,000 for fiscal year 2006, $600,000,000 for fiscal 

year 2007, and $700,000,000 for fiscal year 2008’’ and inserting 

‘‘appropriated—

‘‘(1) $750,000,000 for fiscal year 2008; 

‘‘(2) $900,000,000 for fiscal year 2009; 

‘‘(3) $1,050,000,000 for fiscal year 2010; 

‘‘(4) $1,200,000,000 for fiscal year 2011; and 

‘‘(5) $1,400,000,000 for fiscal year 2012.’’. 

(b) SUSTAINABLE ENERGY RESOURCES FOR CONSUMERS GRANTS.—

(1) IN GENERAL.—The Secretary may make funding available 

to local weatherization agencies from amounts authorized 

under the amendment made by subsection (a) to expand the 

weatherization assistance program for residential buildings to 

include materials, benefits, and renewable and domestic energy 

technologies not covered by the program (as of the date of enactment of this Act), if the State weatherization grantee certifies that the applicant has the capacity to carry out the proposed activities and that the grantee will include the project in 

the financial oversight of the grantee of the weatherization assistance program. 

(2) PRIORITY.—In selecting grant recipients under this subsection, the Secretary shall give priority to—

(A) the expected effectiveness and benefits of the proposed project to low- and moderate-income energy consumers; 

(B) the potential for replication of successful results; 


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(C) the impact on the health and safety and energy costs 

of consumers served; and 

(D) the extent of partnerships with other public and private entities that contribute to the resources and implementation of the program, including financial partnerships. 

(3) FUNDING.—

(A) IN GENERAL.—Except as provided in paragraph (2), 

the amount of funds used for projects described in paragraph (1) may equal up to 2 percent of the amount of 

funds made available for any fiscal year under section 422 

of the Energy Conservation and Production Act (42 U.S.C. 

6872). 

(B) EXCEPTION.—No funds may be used for sustainable 

energy resources for consumers grants for a fiscal year 

under this subsection if the amount of funds made available for the fiscal year to carry out the Weatherization Assistance Program for Low-Income Persons established 

under part A of title IV of the Energy Conservation and 

Production Act (42 U.S.C. 6861 et seq.) is less than 

$275,000,000. 

(c) DEFINITION OF STATE.—Section 412 of the Energy Conservation and Production Act (42 U.S.C. 6862) is amended by striking 

paragraph (8) and inserting the following: 

‘‘(8) STATE.—The term ‘State’ means—

‘‘(A) a State; 

‘‘(B) the District of Columbia; 

‘‘(C) the Commonwealth of Puerto Rico; and 

‘‘(D) any other territory or possession of the United 

States.’’. 

SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS. 

(a) IN GENERAL.—Not later than 120 days after the date of enactment of this Act, the Secretary shall conduct, and submit to Congress a report on, a study regarding the rebate programs established under sections 124 and 206(c) of the Energy Policy Act of 

2005 (42 U.S.C. 15821, 15853). 

(b) COMPONENTS.—In conducting the study, the Secretary shall—

(1) develop a plan for how the rebate programs would be carried out if the programs were funded; and 

(2) determine the minimum amount of funding the program 

would need to receive in order to accomplish the goals of the 

programs. 

SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING. 

(a) ESTABLISHMENT OF STANDARDS.—

(1) IN GENERAL.—Not later than 4 years after the date of enactment of this Act, the Secretary shall by regulation establish 

standards for energy efficiency in manufactured housing. 

(2) NOTICE, COMMENT, AND CONSULTATION.—Standards described in paragraph (1) shall be established after—

(A) notice and an opportunity for comment by manufacturers of manufactured housing and other interested parties; and 


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(B) consultation with the Secretary of Housing and 

Urban Development, who may seek further counsel from 

the Manufactured Housing Consensus Committee. 

(b) REQUIREMENTS.—

(1) INTERNATIONAL ENERGY CONSERVATION CODE.—The energy conservation standards established under this section 

shall be based on the most recent version of the International 

Energy Conservation Code (including supplements), except in 

cases in which the Secretary finds that the code is not cost-effective, or a more stringent standard would be more cost-effective, based on the impact of the code on the purchase price of 

manufactured housing and on total life-cycle construction and 

operating costs. 

(2) CONSIDERATIONS.—The energy conservation standards established under this section may—

(A) take into consideration the design and factory construction techniques of manufactured homes; 

(B) be based on the climate zones established by the Department of Housing and Urban Development rather than 

the climate zones under the International Energy Conservation Code; and 

(C) provide for alternative practices that result in net estimated energy consumption equal to or less than the specified standards. 

(3) UPDATING.—The energy conservation standards established under this section shall be updated not later than—

(A) 1 year after the date of enactment of this Act; and 

(B) 1 year after any revision to the International Energy 

Conservation Code. 

(c) ENFORCEMENT.—Any manufacturer of manufactured housing 

that violates a provision of the regulations under subsection (a) is 

liable to the United States for a civil penalty in an amount not exceeding 1 percent of the manufacturer’s retail list price of the manufactured housing. 

Subtitle B—High-Performance Commercial Buildings 

SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS. 

(a) DIRECTOR OF COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.—Notwithstanding any other provision of law, the Secretary, 

acting through the Assistant Secretary of Energy Efficiency and 

Renewable Energy, shall appoint a Director of Commercial HighPerformance Green Buildings to a position in the career-reserved 

Senior Executive service, with the principal responsibility to—

(1) establish and manage the Office of Commercial High-Performance Green Buildings; and 

(2) carry out other duties as required under this subtitle. 

(b) QUALIFICATIONS.—The Commercial Director shall be an individual, who by reason of professional background and experience, 

is specifically qualified to carry out the duties required under this 

subtitle. 

(c) DUTIES.—The Commercial Director shall, with respect to development of high-performance green buildings and zero-energy 

commercial buildings nationwide—


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(1) coordinate the activities of the Office of Commercial 

High-Performance Green Buildings with the activities of the 

Office of Federal High-Performance Green Buildings; 

(2) develop the legal predicates and agreements for, negotiate, and establish one or more public-private partnerships 

with the Consortium, members of the Consortium, and other 

capable parties meeting the qualifications of the Consortium, 

to further such development; 

(3) represent the public and the Department in negotiating 

and performing in accord with such public-private partnerships; 

(4) use appropriated funds in an effective manner to encourage the maximum investment of private funds to achieve such 

development; 

(5) promote research and development of high performance 

green buildings, consistent with section 423; and 

(6) jointly establish with the Federal Director a national 

high-performance green building clearinghouse in accordance 

with section 423(1), which shall provide high-performance 

green building information and disseminate research results 

through—

(A) outreach; 

(B) education; and 

(C) the provision of technical assistance. 

(d) REPORTING.—The Commercial Director shall report directly to 

the Assistant Secretary for Energy Efficiency and Renewable Energy, or to other senior officials in a way that facilitates the integrated program of this subtitle for both energy efficiency and renewable energy and both technology development and technology 

deployment. 

(e) COORDINATION.—The Commercial Director shall ensure full 

coordination of high-performance green building information and 

activities, including activities under this subtitle, within the Federal Government by working with the General Services Administration and all relevant agencies, including, at a minimum—

(1) the Environmental Protection Agency; 

(2) the Office of the Federal Environmental Executive; 

(3) the Office of Federal Procurement Policy; 

(4) the Department of Energy, particularly the Federal Energy Management Program; 

(5) the Department of Health and Human Services; 

(6) the Department of Housing and Urban Development; 

(7) the Department of Defense; 

(8) the National Institute of Standards and Technology; 

(9) the Department of Transportation; 

(10) the Office of Science Technology and Policy; and 

(11) such nonprofit high-performance green building rating 

and analysis entities as the Commercial Director determines 

can offer support, expertise, and review services. 

(f) HIGH-PERFORMANCE GREEN BUILDING PARTNERSHIP CONSOR- TIUM.—

(1) RECOGNITION.—Not later than 90 days after the date of 

enactment of this Act, the Commercial Director shall formally 

recognize one or more groups that qualify as a high-performance green building partnership consortium. 


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(2) REPRESENTATION TO QUALIFY.—To qualify under this section, any consortium shall include representation from—

(A) the design professions, including national associations of architects and of professional engineers; 

(B) the development, construction, financial, and real estate industries; 

(C) building owners and operators from the public and 

private sectors; 

(D) academic and research organizations, including at 

least one national laboratory with extensive commercial 

building energy expertise; 

(E) building code agencies and organizations, including a 

model energy code-setting organization; 

(F) independent high-performance green building associations or councils; 

(G) experts in indoor air quality and environmental factors; 

(H) experts in intelligent buildings and integrated building information systems; 

(I) utility energy efficiency programs; 

(J) manufacturers and providers of equipment and techniques used in high performance green buildings; 

(K) public transportation industry experts; and 

(L) nongovernmental energy efficiency organizations. 

(3) FUNDING.—The Secretary may make payments to the 

Consortium pursuant to the terms of a public-private partnership for such activities of the Consortium undertaken under 

such a partnership as described in this subtitle directly to the 

Consortium or through one or more of its members. 

(g) REPORT.—Not later than 2 years after the date of enactment 

of this Act, and biennially thereafter, the Commercial Director, in 

consultation with the Consortium, shall submit to Congress a report that—

(1) describes the status of the high-performance green building initiatives under this subtitle and other Federal programs 

affecting commercial high-performance green buildings in effect as of the date of the report, including—

(A) the extent to which the programs are being carried 

out in accordance with this subtitle; and 

(B) the status of funding requests and appropriations for 

those programs; and 

(2) summarizes and highlights development, at the State and 

local level, of high-performance green building initiatives, including executive orders, policies, or laws adopted promoting 

high-performance green building (including the status of implementation of those initiatives). 

SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE. 

(a) DEFINITIONS.—In this section: 

(1) CONSORTIUM.—The term ‘‘consortium’’ means a High-Performance Green Building Consortium selected by the Commercial Director. 

(2) INITIATIVE.—The term ‘‘initiative’’ means the Zero-NetEnergy Commercial Buildings Initiative established under subsection (b)(1). 


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(3) ZERO-NET-ENERGY COMMERCIAL BUILDING.—The term 

‘‘zero-net-energy commercial building’’ means a high-performance commercial building that is designed, constructed, and operated—

(A) to require a greatly reduced quantity of energy to operate; 

(B) to meet the balance of energy needs from sources of 

energy that do not produce greenhouse gases; 

(C) in a manner that will result in no net emissions of 

greenhouse gases; and 

(D) to be economically viable. 

(b) ESTABLISHMENT.—

(1) IN GENERAL.—The Commercial Director shall establish an 

initiative, to be known as the ‘‘Zero-Net-Energy Commercial 

Buildings Initiative’’—

(A) to reduce the quantity of energy consumed by commercial buildings located in the United States; and 

(B) to achieve the development of zero net energy commercial buildings in the United States. 

(2) CONSORTIUM.—

(A) IN GENERAL.—Not later than 180 days after the date 

of enactment of this Act, the Commercial Director shall 

competitively select, and enter into an agreement with, a 

consortium to develop and carry out the initiative. 

(B) AGREEMENTS.—In entering into an agreement with a 

consortium under subparagraph (A), the Commercial Director shall use the authority described in section 646(g) of 

the Department of Energy Organization Act (42 U.S.C. 

7256(g)), to the maximum extent practicable. 

(c) GOAL OF INITIATIVE.—The goal of the initiative shall be to develop and disseminate technologies, practices, and policies for the 

development and establishment of zero net energy commercial 

buildings for—

(1) any commercial building newly constructed in the United 

States by 2030; 

(2) 50 percent of the commercial building stock of the United 

States by 2040; and 

(3) all commercial buildings in the United States by 2050. 

(d) COMPONENTS.—In carrying out the initiative, the Commercial 

Director, in consultation with the consortium, may—

(1) conduct research and development on building science, 

design, materials, components, equipment and controls, operation and other practices, integration, energy use measurement, and benchmarking; 

(2) conduct pilot programs and demonstration projects to 

evaluate replicable approaches to achieving energy efficient 

commercial buildings for a variety of building types in a variety of climate zones; 

(3) conduct deployment, dissemination, and technical assistance activities to encourage widespread adoption of technologies, practices, and policies to achieve energy efficient commercial buildings; 

(4) conduct other research, development, demonstration, and 

deployment activities necessary to achieve each goal of the iniVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00123 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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tiative, as determined by the Commercial Director, in consultation with the consortium; 

(5) develop training materials and courses for building professionals and trades on achieving cost-effective high-performance energy efficient buildings; 

(6) develop and disseminate public education materials to 

share information on the benefits and cost-effectiveness of 

high-performance energy efficient buildings; 

(7) support code-setting organizations and State and local 

governments in developing minimum performance standards in 

building codes that recognize the ready availability of many 

technologies utilized in high-performance energy efficient 

buildings; 

(8) develop strategies for overcoming the split incentives between builders and purchasers, and landlords and tenants, to 

ensure that energy efficiency and high-performance investments are made that are cost-effective on a lifecycle basis; and 

(9) develop improved means of measurement and verification 

of energy savings and performance for public dissemination. 

(e) COST SHARING.—In carrying out this section, the Commercial 

Director shall require cost sharing in accordance with section 988 

of the Energy Policy Act of 2005 (42 U.S.C. 16352). 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section—

(1) $20,000,000 for fiscal year 2008; 

(2) $50,000,000 for each of fiscal years 2009 and 2010; 

(3) $100,000,000 for each of fiscal years 2011 and 2012; and 

(4) $200,000,000 for each of fiscal years 2013 through 2018. 

SEC. 423. PUBLIC OUTREACH. 

The Commercial Director and Federal Director, in coordination 

with the Consortium, shall carry out public outreach to inform individuals and entities of the information and services available Governmentwide by—

(1) establishing and maintaining a national high-performance green building clearinghouse, including on the internet, 

that—

(A) identifies existing similar efforts and coordinates activities of common interest; and 

(B) provides information relating to high-performance 

green buildings, including hyperlinks to internet sites that 

describe the activities, information, and resources of—

(i) the Federal Government; 

(ii) State and local governments; 

(iii) the private sector (including nongovernmental 

and nonprofit entities and organizations); and 

(iv) international organizations; 

(2) identifying and recommending educational resources for 

implementing high-performance green building practices, including security and emergency benefits and practices; 

(3) providing access to technical assistance, tools, and resources for constructing high-performance green buildings, particularly tools to conduct life-cycle costing and life-cycle assessment; 


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(4) providing information on application processes for certifying a high-performance green building, including certification 

and commissioning; 

(5) providing to the public, through the Commercial Director, 

technical and research information or other forms of assistance 

or advice that would be useful in planning and constructing 

high-performance green buildings; 

(6) using such additional methods as are determined by the 

Commercial Director to be appropriate to conduct public outreach; 

(7) surveying existing research and studies relating to highperformance green buildings; and 

(8) coordinating activities of common interest. 

Subtitle C—High-Performance Federal Buildings 

SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS. 

Section 543(a)(1) of the National Energy Conservation Policy Act 

(42 U.S.C. 8253(a)(1)) is amended by striking the table and inserting the following: 

‘‘Fiscal Year Percentage reduction 

2006 ................................................................................................... 2

2007 ................................................................................................... 4

2008 ................................................................................................... 9

2009 ................................................................................................... 12

2010 ................................................................................................... 15

2011 ................................................................................................... 18

2012 ................................................................................................... 21

2013 ................................................................................................... 24

2014 ................................................................................................... 27

2015 ................................................................................................... 30.’’

SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL BUILDINGS. 

Section 543 of the National Energy Conservation Policy Act (42 

U.S.C. 8253) is amended by adding at the end the following: 

‘‘(f) USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL BUILDINGS.—

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) COMMISSIONING.—The term ‘commissioning’, with 

respect to a facility, means a systematic process—

‘‘(i) of ensuring, using appropriate verification and 

documentation, during the period beginning on the initial day of the design phase of the facility and ending 

not earlier than 1 year after the date of completion of 

construction of the facility, that all facility systems 

perform interactively in accordance with—

‘‘(I) the design documentation and intent of the 

facility; and 

‘‘(II) the operational needs of the owner of the 

facility, including preparation of operation personnel; and 

‘‘(ii) the primary goal of which is to ensure fully 

functional systems that can be properly operated and 

maintained during the useful life of the facility. 

‘‘(B) ENERGY MANAGER.—


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‘‘(i) IN GENERAL.—The term ‘energy manager’, with 

respect to a facility, means the individual who is responsible for— ‘‘(I) ensuring compliance with this subsection by 

the facility; and ‘‘(II) reducing energy use at the facility. ‘‘(ii) INCLUSIONS.—The term ‘energy manager’ may 

include—

‘‘(I) a contractor of a facility; 

‘‘(II) a part-time employee of a facility; and 

‘‘(III) an individual who is responsible for multiple facilities. ‘‘(C) FACILITY.—

‘‘(i) IN GENERAL.—The term ‘facility’ means any 

building, installation, structure, or other property (including any applicable fixtures) owned or operated by, 

or constructed or manufactured and leased to, the 

Federal Government. 

‘‘(ii) INCLUSIONS.—The term ‘facility’ includes—

‘‘(I) a group of facilities at a single location or 

multiple locations managed as an integrated operation; and 

‘‘(II) contractor-operated facilities owned by the 

Federal Government. 

‘‘(iii) EXCLUSIONS.—The term ‘facility’ does not include any land or site for which the cost of utilities is 

not paid by the Federal Government. ‘‘(D) LIFE CYCLE COST-EFFECTIVE.—The term ‘life cycle 

cost-effective’, with respect to a measure, means a measure 

the estimated savings of which exceed the estimated costs 

over the lifespan of the measure, as determined in accordance with section 544. ‘‘(E) PAYBACK PERIOD.— ‘‘(i) IN GENERAL.—Subject to clause (ii), the term 

‘payback period’, with respect to a measure, means a 

value equal to the quotient obtained by dividing—

‘‘(I) the estimated initial implementation cost of 

the measure (other than financing costs); by 

‘‘(II) the annual cost savings resulting from the 

measure, including—

‘‘(aa) net savings in estimated energy and 

water costs; and 

‘‘(bb) operations, maintenance, repair, replacement, and other direct costs. 

‘‘(ii) MODIFICATIONS AND EXCEPTIONS.—The Secretary, in guidelines issued pursuant to paragraph (6), 

may make such modifications and provide such exceptions to the calculation of the payback period of a 

measure as the Secretary determines to be appropriate 

to achieve the purposes of this Act. ‘‘(F) RECOMMISSIONING.—The term ‘recommissioning’ means a process— ‘‘(i) of commissioning a facility or system beyond the 

project development and warranty phases of the facility or system; and 


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‘‘(ii) the primary goal of which is to ensure optimum 

performance of a facility, in accordance with design or 

current operating needs, over the useful life of the facility, while meeting building occupancy requirements. 

‘‘(G) RETROCOMMISSIONING.—The term 

‘retrocommissioning’ means a process of commissioning a 

facility or system that was not commissioned at time of 

construction of the facility or system. 

‘‘(2) FACILITY ENERGY MANAGERS.—

‘‘(A) IN GENERAL.—Each Federal agency shall designate 

an energy manager responsible for implementing this subsection and reducing energy use at each facility that meets 

criteria under subparagraph (B). 

‘‘(B) COVERED FACILITIES.—The Secretary shall develop 

criteria, after consultation with affected agencies, energy 

efficiency advocates, and energy and utility service providers, that cover, at a minimum, Federal facilities, including central utility plants and distribution systems and 

other energy intensive operations, that constitute at least 

75 percent of facility energy use at each agency. 

‘‘(3) ENERGY AND WATER EVALUATIONS.—

‘‘(A) EVALUATIONS.—Effective beginning on the date that 

is 180 days after the date of enactment of this subsection 

and annually thereafter, energy managers shall complete, 

for each calendar year, a comprehensive energy and water 

evaluation for approximately 25 percent of the facilities of 

each agency that meet the criteria under paragraph (2)(B) 

in a manner that ensures that an evaluation of each such 

facility is completed at least once every 4 years. 

‘‘(B) RECOMMISSIONING AND RETROCOMMISSIONING.—As 

part of the evaluation under subparagraph (A), the energy 

manager shall identify and assess recommissioning measures (or, if the facility has never been commissioned, 

retrocommissioning measures) for each such facility. 

‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY AND WATER EFFICIENCY MEASURES.—Not later than 2 years after the completion of each evaluation under paragraph (3), each energy manager may—

‘‘(A) implement any energy- or water-saving measure 

that the Federal agency identified in the evaluation conducted under paragraph (3) that is life cycle cost-effective; 

and 

‘‘(B) bundle individual measures of varying paybacks together into combined projects. 

‘‘(5) FOLLOW-UP ON IMPLEMENTED MEASURES.—For each 

measure implemented under paragraph (4), each energy manager shall ensure that—

‘‘(A) equipment, including building and equipment controls, is fully commissioned at acceptance to be operating 

at design specifications; 

‘‘(B) a plan for appropriate operations, maintenance, and 

repair of the equipment is in place at acceptance and is followed; 


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‘‘(C) equipment and system performance is measured 

during its entire life to ensure proper operations, maintenance, and repair; and 

‘‘(D) energy and water savings are measured and 

verified. 

‘‘(6) GUIDELINES.—

‘‘(A) IN GENERAL.—The Secretary shall issue guidelines 

and necessary criteria that each Federal agency shall follow for implementation of—

‘‘(i) paragraphs (2) and (3) not later than 180 days 

after the date of enactment of this subsection; and 

‘‘(ii) paragraphs (4) and (5) not later than 1 year 

after the date of enactment of this subsection. 

‘‘(B) RELATIONSHIP TO FUNDING SOURCE.—The guidelines 

issued by the Secretary under subparagraph (A) shall be 

appropriate and uniform for measures funded with each 

type of funding made available under paragraph (10), but 

may distinguish between different types of measures 

project size, and other criteria the Secretary determines 

are relevant. 

‘‘(7) WEB-BASED CERTIFICATION.—

‘‘(A) IN GENERAL.—For each facility that meets the criteria established by the Secretary under paragraph (2)(B), 

the energy manager shall use the web-based tracking system under subparagraph (B) to certify compliance with the 

requirements for—

‘‘(i) energy and water evaluations under paragraph 

(3); 

‘‘(ii) implementation of identified energy and water 

measures under paragraph (4); and 

‘‘(iii) follow-up on implemented measures under 

paragraph (5). 

‘‘(B) DEPLOYMENT.—

‘‘(i) IN GENERAL.—Not later than 1 year after the 

date of enactment of this subsection, the Secretary 

shall develop and deploy a web-based tracking system 

required under this paragraph in a manner that 

tracks, at a minimum—

‘‘(I) the covered facilities; 

‘‘(II) the status of meeting the requirements 

specified in subparagraph (A); 

‘‘(III) the estimated cost and savings for measures required to be implemented in a facility; 

‘‘(IV) the measured savings and persistence of 

savings for implemented measures; and 

‘‘(V) the benchmarking information disclosed 

under paragraph (8)(C). 

‘‘(ii) EASE OF COMPLIANCE.—The Secretary shall ensure that energy manager compliance with the requirements in this paragraph, to the maximum extent 

practicable—

‘‘(I) can be accomplished with the use of streamlined procedures and templates that minimize the 

time demands on Federal employees; and 


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‘‘(II) is coordinated with other applicable energy 

reporting requirements. ‘‘(C) AVAILABILITY.— ‘‘(i) IN GENERAL.—Subject to clause (ii), the Secretary shall make the web-based tracking system required under this paragraph available to Congress, 

other Federal agencies, and the public through the 

Internet. ‘‘(ii) EXEMPTIONS.—At the request of a Federal agency, the Secretary may exempt specific data for specific 

facilities from disclosure under clause (i) for national 

security purposes. ‘‘(8) BENCHMARKING OF FEDERAL FACILITIES.—

‘‘(A) IN GENERAL.—The energy manager shall enter energy use data for each metered building that is (or is a 

part of) a facility that meets the criteria established by the 

Secretary under paragraph (2)(B) into a building energy 

use benchmarking system, such as the Energy Star Portfolio Manager. 

‘‘(B) SYSTEM AND GUIDANCE.—Not later than 1 year after 

the date of enactment of this subsection, the Secretary 

shall—

‘‘(i) select or develop the building energy use 

benchmarking system required under this paragraph 

for each type of building; and 

‘‘(ii) issue guidance for use of the system. 

‘‘(C) PUBLIC DISCLOSURE.—Each energy manager shall 

post the information entered into, or generated by, a 

benchmarking system under this subsections, on the webbased tracking system under paragraph (7)(B). The energy 

manager shall update such information each year, and 

shall include in such reporting previous years’ information 

to allow changes in building performance to be tracked 

over time. 

‘‘(9) FEDERAL AGENCY SCORECARDS.— ‘‘(A) IN GENERAL.—The Director of the Office of Management and Budget shall issue semiannual scorecards for energy management activities carried out by each Federal 

agency that includes— ‘‘(i) summaries of the status of implementing the 

various requirements of the agency and its energy 

managers under this subsection; and ‘‘(ii) any other means of measuring performance that 

the Director considers appropriate. ‘‘(B) AVAILABILITY.—The Director shall make the scorecards required under this paragraph available to Congress, 

other Federal agencies, and the public through the Internet. 

‘‘(10) FUNDING AND IMPLEMENTATION.— ‘‘(A) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to 

carry out this subsection. ‘‘(B) FUNDING OPTIONS.—

‘‘(i) IN GENERAL.—To carry out this subsection, a 

Federal agency may use any combination of—


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‘‘(I) appropriated funds made available under 

subparagraph (A); and ‘‘(II) private financing otherwise authorized 

under Federal law, including financing available 

through energy savings performance contracts or 

utility energy service contracts. ‘‘(ii) COMBINED FUNDING FOR SAME MEASURE.—A 

Federal agency may use any combination of appropriated funds and private financing described in 

clause (i) to carry out the same measure under this 

subsection. ‘‘(C) IMPLEMENTATION.—Each Federal agency may implement the requirements under this subsection itself or may 

contract out performance of some or all of the requirements. ‘‘(11) RULE OF CONSTRUCTION.—This subsection shall not be 

construed to require or to obviate any contractor savings guarantees.’’. 

SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE 

STANDARDS. 

(a) STANDARDS.—Section 305(a)(3) of the Energy Conservation 

and Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at 

the end the following new subparagraph: ‘‘(D) Not later than 1 year after the date of enactment of the Energy Independence and Security Act of 2007, the Secretary shall establish, by rule, revised Federal building energy efficiency performance standards that require that: ‘‘(i) For new Federal buildings and Federal buildings undergoing major renovations, with respect to which the Administrator of General Services is required to transmit a prospectus 

to Congress under section 3307 of title 40, United States Code, 

in the case of public buildings (as defined in section 3301 of 

title 40, United States Code), or of at least $2,500,000 in costs 

adjusted annually for inflation for other buildings: 

‘‘(I) The buildings shall be designed so that the fossil 

fuel-generated energy consumption of the buildings is reduced, as compared with such energy consumption by a 

similar building in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency), by the percentage specified in the following table: 

‘‘Fiscal Year Percentage Reduction

2010 ................................................................................................... 55

2015 ................................................................................................... 65

2020 ................................................................................................... 80

2025 ................................................................................................... 90

2030 ................................................................................................... 100 

‘‘(II) Upon petition by an agency subject to this subparagraph, the Secretary may adjust the applicable numeric requirement under subclause (I) downward with respect to a 

specific building, if the head of the agency designing the 

building certifies in writing that meeting such requirement 

would be technically impracticable in light of the agency’s 

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clause shall not apply to the General Services Administration. 

‘‘(III) Sustainable design principles shall be applied to 

the siting, design, and construction of such buildings. Not 

later than 90 days after the date of enactment of the Energy Independence and Security Act of 2007, the Secretary, 

after reviewing the findings of the Federal Director under 

section 436(h) of that Act, in consultation with the Administrator of General Services, and in consultation with the 

Secretary of Defense for considerations relating to those facilities under the custody and control of the Department of 

Defense, shall identify a certification system and level for 

green buildings that the Secretary determines to be the 

most likely to encourage a comprehensive and environmentally-sound approach to certification of green buildings. The identification of the certification system and 

level shall be based on a review of the Federal Director’s 

findings under section 436(h) of the Energy Independence 

and Security Act of 2007 and the criteria specified in 

clause (iii), shall identify the highest level the Secretary 

determines is appropriate above the minimum level required for certification under the system selected, and 

shall achieve results at least comparable to the system 

used by and highest level referenced by the General Services Administration as of the date of enactment of the Energy Independence and Security Act of 2007. Within 90 

days of the completion of each study required by clause 

(iv), the Secretary, in consultation with the Administrator 

of General Services, and in consultation with the Secretary 

of Defense for considerations relating to those facilities 

under the custody and control of the Department of Defense, shall review and update the certification system and 

level, taking into account the conclusions of such study. 

‘‘(ii) In establishing criteria for identifying major renovations 

that are subject to the requirements of this subparagraph, the 

Secretary shall take into account the scope, degree, and types 

of renovations that are likely to provide significant opportunities for substantial improvements in energy efficiency. 

‘‘(iii) In identifying the green building certification system 

and level, the Secretary shall take into consideration—

‘‘(I) the ability and availability of assessors and auditors 

to independently verify the criteria and measurement of 

metrics at the scale necessary to implement this subparagraph; 

‘‘(II) the ability of the applicable certification organization to collect and reflect public comment; 

‘‘(III) the ability of the standard to be developed and revised through a consensus-based process; 

‘‘(IV) an evaluation of the robustness of the criteria for 

a high-performance green building, which shall give credit 

for promoting—

‘‘(aa) efficient and sustainable use of water, energy, 

and other natural resources; 

‘‘(bb) use of renewable energy sources; 


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‘‘(cc) improved indoor environmental quality through 

enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of 

low-emission materials and building system controls; 

and ‘‘(dd) such other criteria as the Secretary determines 

to be appropriate; and ‘‘(V) national recognition within the building industry. ‘‘(iv) At least once every five years, and in accordance with 

section 436 of the Energy Independence and Security Act of 

2007, the Administrator of General Services shall conduct a 

study to evaluate and compare available third-party green 

building certification systems and levels, taking into account 

the criteria listed in clause (iii). ‘‘(v) The Secretary may by rule allow Federal agencies to develop internal certification processes, using certified professionals, in lieu of certification by the certification entity identified under clause (i)(III). The Secretary shall include in any 

such rule guidelines to ensure that the certification process results in buildings meeting the applicable certification system 

and level identified under clause (i)(III). An agency employing 

an internal certification process must continue to obtain external certification by the certification entity identified under 

clause (i)(III) for at least 5 percent of the total number of buildings certified annually by the agency. ‘‘(vi) With respect to privatized military housing, the Secretary of Defense, after consultation with the Secretary may, 

through rulemaking, develop alternative criteria to those established by subclauses (I) and (III) of clause (i) that achieve 

an equivalent result in terms of energy savings, sustainable 

design, and green building performance. ‘‘(vii) In addition to any use of water conservation technologies otherwise required by this section, water conservation 

technologies shall be applied to the extent that the technologies are life-cycle cost-effective.’’. 

(b) DEFINITIONS.—Section 303(6) of the Energy Conservation and 

Production Act (42 U.S.C. 6832(6)) is amended by striking ‘‘which 

is not legally subject to State or local building codes or similar requirements.’’ and inserting ‘‘. Such term shall include buildings 

built for the purpose of being leased by a Federal agency, and 

privatized military housing.’’. (c) REVISION OF FEDERAL ACQUISITION REGULATION.—Not later 

than 2 years after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to require Federal officers and employees to comply with this section and the amendments made by this section in the acquisition, construction, or 

major renovation of any facility. The members of the Federal Acquisition Regulatory Council (established under section 25 of the 

Office of Federal Procurement Policy Act (41 U.S.C. 421)) shall consult with the Federal Director and the Commercial Director before 

promulgating regulations to carry out this subsection. 

(d) GUIDANCE.—Not later than 90 days after the date of promulgation of the revised regulations under subsection (c), the Administrator for Federal Procurement Policy shall issue guidance to all 

Federal procurement executives providing direction and instrucVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00132 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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tions to renegotiate the design of proposed facilities and major renovations for existing facilities to incorporate improvements that are 

consistent with this section. 

SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY . 

(a) LARGE CAPITAL ENERGY INVESTMENTS.—Section 543 of the 

National Energy Conservation Policy Act (42 U.S.C. 8253) is 

amended by adding at the end the following: 

‘‘(f) LARGE CAPITAL ENERGY INVESTMENTS.—

‘‘(1) IN GENERAL.—Each Federal agency shall ensure that 

any large capital energy investment in an existing building 

that is not a major renovation but involves replacement of installed equipment (such as heating and cooling systems), or involves renovation, rehabilitation, expansion, or remodeling of 

existing space, employs the most energy efficient designs, systems, equipment, and controls that are life-cycle cost effective. 

‘‘(2) PROCESS FOR REVIEW OF INVESTMENT DECISIONS.—Not 

later than 180 days after the date of enactment of this subsection, each Federal agency shall—

‘‘(A) develop a process for reviewing each decision made 

on a large capital energy investment described in paragraph (1) to ensure that the requirements of this subsection are met; and 

‘‘(B) report to the Director of the Office of Management 

and Budget on the process established. 

‘‘(3) COMPLIANCE REPORT.—Not later than 1 year after the 

date of enactment of this subsection, the Director of the Office 

of Management and Budget shall evaluate and report to Congress on the compliance of each agency with this subsection.’’. 

(b) METERING.—Section 543(e)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting 

after the second sentence the following: ‘‘Not later than October 1, 

2016, each agency shall provide for equivalent metering of natural 

gas and steam, in accordance with guidelines established by the 

Secretary under paragraph (2).’’. 

SEC. 435. LEASING. 

(a) IN GENERAL.—Except as provided in subsection (b), effective 

beginning on the date that is 3 years after the date of enactment 

of this Act, no Federal agency shall enter into a contract to lease 

space in a building that has not earned the Energy Star label in 

the most recent year. 

(b) EXCEPTION.—

(1) APPLICATION.—This subsection applies if—

(A) no space is available in a building described in subsection (a) that meets the functional requirements of an 

agency, including locational needs; 

(B) the agency proposes to remain in a building that the 

agency has occupied previously; 

(C) the agency proposes to lease a building of historical, 

architectural, or cultural significance (as defined in section 

3306(a)(4) of title 40, United States Code) or space in such 

a building; or 

(D) the lease is for not more than 10,000 gross square 

feet of space. 


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(2) BUILDINGS WITHOUT ENERGY STAR LABEL.—If 1 of the conditions described in paragraph (2) is met, the agency may enter 

into a contract to lease space in a building that has not earned 

the Energy Star label in the most recent year if the lease contract includes provisions requiring that, prior to occupancy or, 

in the case of a contract described in paragraph (1)(B), not 

later than 1 year after signing the contract, the space will be 

renovated for all energy efficiency and conservation improvements that would be cost effective over the life of the lease, including improvements in lighting, windows, and heating, ventilation, and air conditioning systems. 

(c) REVISION OF FEDERAL ACQUISITION REGULATION.— (1) IN GENERAL.—Not later than 3 years after the date of the 

enactment of this Act, the Federal Acquisition Regulation described in section 6(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(a)) shall be revised to require Federal 

officers and employees to comply with this section in leasing 

buildings. 

(2) CONSULTATION.—The members of the Federal Acquisition 

Regulatory Council established under section 25 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 421)) shall consult with the Federal Director and the Commercial Director before promulgating regulations to carry out this subsection. 

SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS. 

(a) ESTABLISHMENT OF OFFICE.—Not later than 60 days after the 

date of enactment of this Act, the Administrator shall establish 

within the General Services Administration an Office of Federal 

High-Performance Green Buildings, and appoint an individual to 

serve as Federal Director in, a position in the career-reserved Senior Executive service, to— (1) establish and manage the Office of Federal High-Performance Green Buildings; and 

(2) carry out other duties as required under this subtitle. 

(b) COMPENSATION.—The compensation of the Federal Director 

shall not exceed the maximum rate of basic pay for the Senior Executive Service under section 5382 of title 5, United States Code, 

including any applicable locality-based comparability payment that 

may be authorized under section 5304(h)(2)(C) of that title. 

(c) DUTIES.—The Federal Director shall— (1) coordinate the activities of the Office of Federal High-Performance Green Buildings with the activities of the Office of 

Commercial High-Performance Green Buildings, and the Secretary, in accordance with section 305(a)(3)(D) of the Energy 

Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)); 

(2) ensure full coordination of high-performance green building information and activities within the General Services Administration and all relevant agencies, including, at a minimum—

(A) the Environmental Protection Agency; 

(B) the Office of the Federal Environmental Executive; 

(C) the Office of Federal Procurement Policy; 

(D) the Department of Energy; 

(E) the Department of Health and Human Services; 

(F) the Department of Defense; 

(G) the Department of Transportation; 


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(H) the National Institute of Standards and Technology; 

and 

(I) the Office of Science and Technology Policy; 

(3) establish a senior-level Federal Green Building Advisory 

Committee under section 474, which shall provide advice and 

recommendations in accordance with that section and subsection (d); 

(4) identify and every 5 years reassess improved or higher 

rating standards recommended by the Advisory Committee; 

(5) ensure full coordination, dissemination of information regarding, and promotion of the results of research and development information relating to Federal high-performance green 

building initiatives; 

(6) identify and develop Federal high-performance green 

building standards for all types of Federal facilities, consistent 

with the requirements of this subtitle and section 305(a)(3)(D) 

of the Energy Conservation and Production Act (42 U.S.C. 

6834(a)(3)(D)); 

(7) establish green practices that can be used throughout the 

life of a Federal facility; 

(8) review and analyze current Federal budget practices and 

life-cycle costing issues, and make recommendations to Congress, in accordance with subsection (d); and 

(9) identify opportunities to demonstrate innovative and 

emerging green building technologies and concepts. 

(d) ADDITIONAL DUTIES.—The Federal Director, in consultation 

with the Commercial Director and the Advisory Committee, and 

consistent with the requirements of section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)) 

shall—

(1) identify, review, and analyze current budget and contracting practices that affect achievement of high-performance 

green buildings, including the identification of barriers to highperformance green building life-cycle costing and budgetary 

issues; 

(2) develop guidance and conduct training sessions with 

budget specialists and contracting personnel from Federal 

agencies and budget examiners to apply life-cycle cost criteria 

to actual projects; 

(3) identify tools to aid life-cycle cost decisionmaking; and 

(4) explore the feasibility of incorporating the benefits of 

high-performance green buildings, such as security benefits, 

into a cost-budget analysis to aid in life-cycle costing for budget 

and decisionmaking processes. 

(e) INCENTIVES.—Within 90 days after the date of enactment of 

this Act, the Federal Director shall identify incentives to encourage 

the expedited use of high-performance green buildings and related 

technology in the operations of the Federal Government, in accordance with the requirements of section 305(a)(3)(D) of the Energy 

Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), including through— (1) the provision of recognition awards; and 

(2) the maximum feasible retention of financial savings in 

the annual budgets of Federal agencies for use in reinvesting 

in future high-performance green building initiatives. 


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(f) REPORT.—Not later than 2 years after the date of enactment 

of this Act, and biennially thereafter, the Federal Director, in consultation with the Secretary, shall submit to Congress a report 

that—

(1) describes the status of compliance with this subtitle, the 

requirements of section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), and other 

Federal high-performance green building initiatives in effect as 

of the date of the report, including—

(A) the extent to which the programs are being carried 

out in accordance with this subtitle and the requirements 

of section 305(a)(3)(D) of that Act; and 

(B) the status of funding requests and appropriations for 

those programs; 

(2) identifies within the planning, budgeting, and construction process all types of Federal facility procedures that may 

affect the certification of new and existing Federal facilities as 

high-performance green buildings under the provisions of section 305(a)(3)(D) of that Act and the criteria established in subsection (h); 

(3) identifies inconsistencies, as reported to the Advisory 

Committee, in Federal law with respect to product acquisition 

guidelines and high-performance product guidelines; 

(4) recommends language for uniform standards for use by 

Federal agencies in environmentally responsible acquisition; 

(5) in coordination with the Office of Management and Budget, reviews the budget process for capital programs with respect to alternatives for—

(A) restructuring of budgets to require the use of complete energy and environmental cost accounting; 

(B) using operations expenditures in budget-related decisions while simultaneously incorporating productivity and 

health measures (as those measures can be quantified by 

the Office of Federal High-Performance Green Buildings, 

with the assistance of universities and national laboratories); 

(C) streamlining measures for permitting Federal agencies to retain all identified savings accrued as a result of 

the use of life-cycle costing for future high-performance 

green building initiatives; and 

(D) identifying short-term and long-term cost savings 

that accrue from high-performance green buildings, including those relating to health and productivity; 

(6) identifies green, self-sustaining technologies to address 

the operational needs of Federal facilities in times of national 

security emergencies, natural disasters, or other dire emergencies; 

(7) summarizes and highlights development, at the State and 

local level, of high-performance green building initiatives, including executive orders, policies, or laws adopted promoting 

high-performance green building (including the status of implementation of those initiatives); and 

(8) includes, for the 2-year period covered by the report, recommendations to address each of the matters, and a plan for 


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implementation of each recommendation, described in paragraphs (1) through (7). 

(g) IMPLEMENTATION.—The Office of Federal High-Performance 

Green Buildings shall carry out each plan for implementation of 

recommendations under subsection (f)(8). 

(h) IDENTIFICATION OF CERTIFICATION SYSTEM.—

(1) IN GENERAL.—For the purpose of this section, not later 

than 60 days after the date of enactment of this Act, the Federal Director shall identify and shall provide to the Secretary 

pursuant to section 305(a)(3)(D) of the Energy Conservation 

and Production Act (42 U.S.C. 6834(a)(3)(D)), a certification 

system that the Director determines to be the most likely to 

encourage a comprehensive and environmentally-sound approach to certification of green buildings. 

(2) BASIS.—The system identified under paragraph (1) shall 

be based on—

(A) a study completed every 5 years and provided to the 

Secretary pursuant to section 305(a)(3)(D) of that Act, 

which shall be carried out by the Federal Director to compare and evaluate standards; 

(B) the ability and availability of assessors and auditors 

to independently verify the criteria and measurement of 

metrics at the scale necessary to implement this subtitle; 

(C) the ability of the applicable standard-setting organization to collect and reflect public comment; 

(D) the ability of the standard to be developed and revised through a consensus-based process; 

(E) an evaluation of the robustness of the criteria for a 

high performance green building, which shall give credit 

for promoting—

(i) efficient and sustainable use of water, energy, 

and other natural resources; 

(ii) use of renewable energy sources; 

(iii) improved indoor environmental quality through 

enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of 

low-emission materials and building system controls; 

(iv) reduced impacts from transportation through 

building location and site design that promote access 

by public transportation; and 

(v) such other criteria as the Federal Director determines to be appropriate; and 

(F) national recognition within the building industry. 

SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE. 

(a) IN GENERAL.—Not later than October 31 of each of the 2 fiscal years following the fiscal year in which this Act is enacted, and 

at such times thereafter as the Comptroller General of the United 

States determines to be appropriate, the Comptroller General of 

the United States shall, with respect to the fiscal years that have 

passed since the preceding report—

(1) conduct an audit of the implementation of this subtitle, 

section 305(a)(3)(D) of the Energy Conservation and Production 

Act (42 U.S.C. 6834(a)(3)(D)), and section 435; and 


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(2) submit to the Federal Director, the Advisory Committee, 

the Administrator, and Congress a report describing the results of the audit. 

(b) CONTENTS.—An audit under subsection (a) shall include a review, with respect to the period covered by the report under subsection (a)(2), of—

(1) budget, life-cycle costing, and contracting issues, using 

best practices identified by the Comptroller General of the 

United States and heads of other agencies in accordance with 

section 436(d); 

(2) the level of coordination among the Federal Director, the 

Office of Management and Budget, the Department of Energy, 

and relevant agencies; 

(3) the performance of the Federal Director and other agencies in carrying out the implementation plan; 

(4) the design stage of high-performance green building 

measures; 

(5) high-performance building data that were collected and 

reported to the Office; and 

(6) such other matters as the Comptroller General of the 

United States determines to be appropriate. 

(c) ENVIRONMENTAL STEWARDSHIP SCORECARD.—The Federal Director shall consult with the Advisory Committee to enhance, and 

assist in the implementation of, the Office of Management and 

Budget government efficiency reports and scorecards under section 

528 and the Environmental Stewardship Scorecard announced at 

the White House summit on Federal sustainable buildings in January 2006, to measure the implementation by each Federal agency 

of sustainable design and green building initiatives. 

SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL DEVELOPMENT PROJECTS. 

The sponsor of any development or redevelopment project involving a Federal facility with a footprint that exceeds 5,000 square 

feet shall use site planning, design, construction, and maintenance 

strategies for the property to maintain or restore, to the maximum 

extent technically feasible, the predevelopment hydrology of the 

property with regard to the temperature, rate, volume, and duration of flow. 

SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM. 

(a) DEFINITION OF ADMINISTRATOR.—In this section, the term 

‘‘Administrator’’ means the Administrator of General Services. 

(b) ESTABLISHMENT.—

(1) IN GENERAL.—The Administrator shall establish a program to accelerate the use of more cost-effective technologies 

and practices at GSA facilities. 

(2) REQUIREMENTS.—The program established under this 

subsection shall—

(A) ensure centralized responsibility for the coordination 

of cost reduction-related recommendations, practices, and 

activities of all relevant Federal agencies; 

(B) provide technical assistance and operational guidance to applicable tenants to achieve the goal identified in 

subsection (c)(2)(B)(ii); 


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(C) establish methods to track the success of Federal departments and agencies with respect to that goal; and 

(D) be fully coordinated with and no less stringent nor 

less energy-conserving or water-conserving than required 

by other provisions of this Act and other applicable law, including sections 321 through 324, 431 through 438, 461, 

511 through 518, and 523 through 525 and amendments 

made by those sections. 

(c) ACCELERATED USE OF TECHNOLOGIES.— (1) REVIEW.— (A) IN GENERAL.—As part of the program under this section, not later than 90 days after the date of enactment of 

this Act, the Administrator shall conduct a review of— (i) current use of cost-effective lighting technologies 

and geothermal heat pumps in GSA facilities; and 

(ii) the availability to managers of GSA facilities of 

cost-effective lighting technologies and geothermal 

heat pumps. 

(B) REQUIREMENTS.—The review under subparagraph 

(A) shall—

(i) examine the use of cost-effective lighting technologies, geothermal heat pumps, and other cost-effective technologies and practices by Federal agencies in 

GSA facilities; and 

(ii) as prepared in consultation with the Administrator of the Environmental Protection Agency, identify cost-effective lighting technology and geothermal 

heat pump technology standards that could be used for 

all types of GSA facilities. 

(2) REPLACEMENT.—

(A) IN GENERAL.—As part of the program under this section, not later than 180 days after the date of enactment 

of this Act, the Administrator shall establish, using available appropriations and programs implementing sections 

432 and 525 (and amendments made by those sections), a 

cost-effective lighting technology and geothermal heat 

pump technology acceleration program to achieve maximum feasible replacement of existing lighting, heating, 

cooling technologies with cost-effective lighting technologies and geothermal heat pump technologies in each 

GSA facility. Such program shall fully comply with the requirements of sections 321 through 324, 431 through 438, 

461, 511 through 518, and 523 through 525 and amendments made by those sections and any other provisions of 

law, which shall be applicable to the extent that they are 

more stringent or would achieve greater energy savings 

than required by this section. 

(B) ACCELERATION PLAN TIMETABLE.—

(i) IN GENERAL.—To implement the program established under subparagraph (A), not later than 1 year 

after the date of enactment of this Act, the Administrator shall establish a timetable of actions to comply 

with the requirements of this section and sections 431 

through 435, whichever achieves greater energy savings most expeditiously, including milestones for speVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00139 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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cific activities needed to replace existing lighting, 

heating, cooling technologies with cost-effective lighting technologies and geothermal heat pump technologies, to the maximum extent feasible (including at 

the maximum rate feasible), at each GSA facility. 

(ii) GOAL.—The goal of the timetable under clause (i) 

shall be to complete, using available appropriations 

and programs implementing sections 431 through 435 

(and amendments made by those sections), maximum 

feasible replacement of existing lighting, heating, and 

cooling technologies with cost-effective lighting technologies and geothermal heat pump technologies consistent with the requirements of this section and sections 431 through 435, whichever achieves greater energy savings most expeditiously. Notwithstanding any 

provision of this section, such program shall fully comply with the requirements of the Act including sections 

321 through 324, 431 through 438, 461, 511 through 

518, and 523 through 525 and amendments made by 

those sections and other provisions of law, which shall 

be applicable to the extent that they are more stringent or would achieve greater energy or water savings 

than required by this section. 

(d) GSA FACILITY TECHNOLOGIES AND PRACTICES.—

(1) IN GENERAL.—Not later than 180 days after the date of 

enactment of this Act, and annually thereafter, the Administrator shall—

(A) ensure that a manager responsible for implementing 

section 432 and for accelerating the use of cost-effective 

technologies and practices is designated for each GSA facility; and 

(B) submit to Congress a plan to comply with section 

432, this section, and other applicable provisions of this 

Act and applicable law with respect to energy and water 

conservation at GSA facilities. 

(2) MEASURES.—The plan shall implement measures required by such other provisions of law in accordance with those 

provisions, and shall implement the measures required by this 

section to the maximum extent feasible (including at the maximum rate feasible) using available appropriations and programs implementing sections 431 through 435 and 525 (and 

amendments made by those sections), by not later than the 

date that is 5 years after the date of enactment of this Act. 

(3) CONTENTS OF PLAN.—The plan shall—

(A) with respect to cost-effective technologies and practices—

(i) identify the specific activities needed to comply 

with sections 431 through 435; 

(ii) identify the specific activities needed to achieve 

at least a 20-percent reduction in operational costs 

through the application of cost-effective technologies 

and practices from 2003 levels at GSA facilities by not 

later than 5 years after the date of enactment of this 

Act; 


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(iii) describe activities required and carried out to 

estimate the funds necessary to achieve the reduction 

described in clauses (i) and (ii); 

(B) include an estimate of the funds necessary to carry 

out this section; 

(C) describe the status of the implementation of cost-effective technologies and practices at GSA facilities, including—

(i) the extent to which programs, including the program established under subsection (b), are being carried out in accordance with this subtitle; and 

(ii) the status of funding requests and appropriations for those programs; 

(D) identify within the planning, budgeting, and construction processes, all types of GSA facility-related procedures that inhibit new and existing GSA facilities from implementing cost-effective technologies; 

(E) recommend language for uniform standards for use 

by Federal agencies in implementing cost-effective technologies and practices; 

(F) in coordination with the Office of Management and 

Budget, review the budget process for capital programs 

with respect to alternatives for—

(i) implementing measures that will assure that 

Federal agencies retain all identified savings accrued 

as a result of the use of cost-effective technologies, 

consistent with section 543(a)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1), 

and other applicable law; and 

(ii) identifying short- and long-term cost savings 

that accrue from the use of cost-effective technologies 

and practices; 

(G) with respect to cost-effective technologies and practices, achieve substantial operational cost savings through 

the application of the technologies; and 

(H) include recommendations to address each of the matters, and a plan for implementation of each recommendation, described in subparagraphs (A) through (G). 

(4) ADMINISTRATION.—Notwithstanding any provision of this 

section, the program required under this section shall fully 

comply with the requirements of sections 321 through 324, 431 

through 438, 461, 511 through 518, and 523 through 525 and 

amendments made by those sections, which shall be applicable 

to the extent that they are more stringent or would achieve 

greater energy or water savings than required by this section. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section, to remain available until expended. 

SEC. 440. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated to carry out sections 434 

through 439 and 482 $4,000,000 for each of fiscal years 2008 

through 2012, to remain available until expended. 


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SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS. 

Section 544(a)(1) of the National Energy Conservation Policy Act 

(42 U.S.C. 8254(a)(1)) is amended by striking ‘‘25’’ and inserting 

‘‘40’’. 

Subtitle D—Industrial Energy Efficiency 

SEC. 451. INDUSTRIAL ENERGY EFFICIENCY. 

(a) IN GENERAL.—Title III of the Energy Policy and Conservation 

Act (42 U.S.C. 6291 et seq.) is amended by inserting after part D 

the following: 

‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY 

‘‘SEC. 371. DEFINITIONS. 

‘‘In this part: 

‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 

Administrator of the Environmental Protection Agency. 

‘‘(2) COMBINED HEAT AND POWER.—The term ‘combined heat 

and power system’ means a facility that—

‘‘(A) simultaneously and efficiently produces useful thermal energy and electricity; and 

‘‘(B) recovers not less than 60 percent of the energy 

value in the fuel (on a higher-heating-value basis) in the 

form of useful thermal energy and electricity. 

‘‘(3) NET EXCESS POWER.—The term ‘net excess power’ means, 

for any facility, recoverable waste energy recovered in the form 

of electricity in quantities exceeding the total consumption of 

electricity at the specific time of generation on the site at 

which the facility is located. 

‘‘(4) PROJECT.—The term ‘project’ means a recoverable waste 

energy project or a combined heat and power system project. 

‘‘(5) RECOVERABLE WASTE ENERGY.—The term ‘recoverable 

waste energy’ means waste energy from which electricity or 

useful thermal energy may be recovered through modification 

of an existing facility or addition of a new facility. 

‘‘(6) REGISTRY.—The term ‘Registry’ means the Registry of 

Recoverable Waste Energy Sources established under section 

372(d). 

‘‘(7) USEFUL THERMAL ENERGY.—The term ‘useful thermal 

energy’ means energy—

‘‘(A) in the form of direct heat, steam, hot water, or other 

thermal form that is used in production and beneficial 

measures for heating, cooling, humidity control, process 

use, or other valid thermal end-use energy requirements; 

and 

‘‘(B) for which fuel or electricity would otherwise be consumed. 

‘‘(8) WASTE ENERGY.—The term ‘waste energy’ means—

‘‘(A) exhaust heat or flared gas from any industrial process; 

‘‘(B) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented; 


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‘‘(C) a pressure drop in any gas, excluding any pressure 

drop to a condenser that subsequently vents the resulting 

heat; and ‘‘(D) such other forms of waste energy as the Administrator may determine. ‘‘(9) OTHER TERMS.—The terms ‘electric utility’, ‘nonregulated 

electric utility’, ‘State regulated electric utility’, and other 

terms have the meanings given those terms in title I of the 

Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2611 

et seq.). 

‘‘SEC. 372. SURVEY AND REGISTRY. 

‘‘(a) RECOVERABLE WASTE ENERGY INVENTORY PROGRAM.— ‘‘(1) IN GENERAL.—The Administrator, in cooperation with 

the Secretary and State energy offices, shall establish a recoverable waste energy inventory program. ‘‘(2) SURVEY.—The program shall include— ‘‘(A) an ongoing survey of all major industrial and large 

commercial combustion sources in the United States (as 

defined by the Administrator) and the sites at which the 

sources are located; and ‘‘(B) a review of each source for the quantity and quality 

of waste energy produced at the source. ‘‘(b) CRITERIA.— ‘‘(1) IN GENERAL.—Not later than 270 days after the date of 

enactment of the Energy Independence and Security Act of 

2007, the Administrator shall publish a rule for establishing 

criteria for including sites in the Registry. ‘‘(2) INCLUSIONS.—The criteria shall include— ‘‘(A) a requirement that, to be included in the Registry, 

a project at the site shall be determined to be economically 

feasible by virtue of offering a payback of invested costs 

not later than 5 years after the date of first full project operation (including incentives offered under this part); ‘‘(B) standards to ensure that projects proposed for inclusion in the Registry are not developed or used for the primary purpose of making sales of excess electric power 

under the regulatory provisions of this part; and ‘‘(C) procedures for contesting the listing of any source or 

site on the Registry by any State, utility, or other interested person. ‘‘(c) TECHNICAL SUPPORT.—On the request of the owner or operator of a source or site included in the Registry, the Secretary 

shall—

‘‘(1) provide to owners or operators of combustion sources 

technical support; and 

‘‘(2) offer partial funding (in an amount equal to not more 

than 1⁄2 of total costs) for feasibility studies to confirm whether 

or not investment in recovery of waste energy or combined 

heat and power at a source would offer a payback period of 5 

years or less. 

‘‘(d) REGISTRY.—

‘‘(1) ESTABLISHMENT.—

‘‘(A) IN GENERAL.—Not later than 1 year after the date 

of enactment of the Energy Independence and Security Act 

of 2007, the Administrator shall establish a Registry of ReVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00143 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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coverable Waste Energy Sources, and sites on which the 

sources are located, that meet the criteria established 

under subsection (b). ‘‘(B) UPDATES; AVAILABILITY.—The Administrator shall— ‘‘(i) update the Registry on a regular basis; and 

‘‘(ii) make the Registry available to the public on the 

website of the Environmental Protection Agency. ‘‘(C) CONTESTING LISTING.—Any State, electric utility, or 

other interested person may contest the listing of any 

source or site by submitting a petition to the Administrator. ‘‘(2) CONTENTS.—

‘‘(A) IN GENERAL.—The Administrator shall register and 

include on the Registry all sites meeting the criteria established under subsection (b). 

‘‘(B) QUANTITY OF RECOVERABLE WASTE ENERGY.—The 

Administrator shall—

‘‘(i) calculate the total quantities of potentially recoverable waste energy from sources at the sites, nationally and by State; and 

‘‘(ii) make public—

‘‘(I) the total quantities described in clause (i); 

and 

‘‘(II) information on the criteria pollutant and 

greenhouse gas emissions savings that might be 

achieved with recovery of the waste energy from 

all sources and sites listed on the Registry. 

‘‘(3) AVAILABILITY OF INFORMATION.— ‘‘(A) IN GENERAL.—The Administrator shall notify owners or operators of recoverable waste energy sources and 

sites listed on the Registry prior to publishing the listing. 

‘‘(B) DETAILED QUANTITATIVE INFORMATION.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

the owner or operator of a source at a site may elect 

to have detailed quantitative information concerning 

the site not made public by notifying the Administrator of the election. ‘‘(ii) LIMITED AVAILABILITY.—The information shall 

be made available to— ‘‘(I) the applicable State energy office; and 

‘‘(II) any utility requested to support recovery of 

waste energy from the source pursuant to the incentives provided under section 374. ‘‘(iii) STATE TOTALS.—Information concerning the 

site shall be included in the total quantity of recoverable waste energy for a State unless there are fewer 

than 3 sites in the State. 

‘‘(4) REMOVAL OF PROJECTS FROM REGISTRY.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), as a 

project achieves successful recovery of waste energy, the 

Administrator shall— ‘‘(i) remove the related sites or sources from the Registry; and ‘‘(ii) designate the removed projects as eligible for incentives under section 374. 


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‘‘(B) LIMITATION.—No project shall be removed from the 

Registry without the consent of the owner or operator of 

the project if— ‘‘(i) the owner or operator has submitted a petition 

under section 374; and ‘‘(ii) the petition has not been acted on or denied. ‘‘(5) INELIGIBILITY OF CERTAIN SOURCES.—The Administrator 

shall not list any source constructed after the date of the enactment of the Energy Independence and Security Act of 2007 

on the Registry if the Administrator determines that the 

source—

‘‘(A) was developed for the primary purpose of making 

sales of excess electric power under the regulatory provisions of this part; or ‘‘(B) does not capture at least 60 percent of the total energy value of the fuels used (on a higher-heating-value 

basis) in the form of useful thermal energy, electricity, mechanical energy, chemical output, or any combination 

thereof. ‘‘(e) SELF-CERTIFICATION.—

‘‘(1) IN GENERAL.—Subject to any procedures that are established by the Administrator, an owner, operator, or third-party 

developer of a recoverable waste energy project that qualifies 

under standards established by the Administrator may self-certify the sites or sources of the owner, operator, or developer to 

the Administrator for inclusion in the Registry. ‘‘(2) REVIEW AND APPROVAL.—To prevent a fraudulent listing, 

a site or source shall be included on the Registry only if the 

Administrator reviews and approves the self-certification. ‘‘(f) NEW FACILITIES.—As a new energy-consuming industrial facility is developed after the date of enactment of the Energy Independence and Security Act of 2007, to the extent the facility may 

constitute a site with recoverable waste energy that may qualify for 

inclusion on the Registry, the Administrator may elect to include 

the facility on the Registry, at the request of the owner, operator, 

or developer of the facility, on a conditional basis with the site to 

be removed from the Registry if the development ceases or the site 

fails to qualify for listing under this part. ‘‘(g) OPTIMUM MEANS OF RECOVERY.—For each site listed in the 

Registry, at the request of the owner or operator of the site, the 

Administrator shall offer, in cooperation with Clean Energy Application Centers operated by the Secretary of Energy, suggestions for 

optimum means of recovery of value from waste energy stream in 

the form of electricity, useful thermal energy, or other energy-related products. ‘‘(h) REVISION.—Each annual report of a State under section 

548(a) of the National Energy Conservation Policy Act (42 U.S.C. 

8258(a)) shall include the results of the survey for the State under 

this section. ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to— ‘‘(1) the Administrator to create and maintain the Registry and services authorized by this section, $1,000,000 for each of 

fiscal years 2008 through 2012; and ‘‘(2) the Secretary—


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‘‘(A) to assist site or source owners and operators in determining the feasibility of projects authorized by this section, $2,000,000 for each of fiscal years 2008 through 2012; 

and ‘‘(B) to provide funding for State energy office functions under this section, $5,000,000. 

‘‘SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish in the Department of Energy a waste energy recovery incentive grant program to provide incentive grants to— ‘‘(1) owners and operators of projects that successfully 

produce electricity or incremental useful thermal energy from 

waste energy recovery; ‘‘(2) utilities purchasing or distributing the electricity; and 

‘‘(3) States that have achieved 80 percent or more of recoverable waste heat recovery opportunities. ‘‘(b) GRANTS TO PROJECTS AND UTILITIES.— ‘‘(1) IN GENERAL.—The Secretary shall make grants under 

this section— ‘‘(A) to the owners or operators of waste energy recovery 

projects; and ‘‘(B) in the case of excess power purchased or transmitted by a electric utility, to the utility. ‘‘(2) PROOF.—Grants may only be made under this section on 

receipt of proof of waste energy recovery or excess electricity 

generation, or both, from the project in a form prescribed by 

the Secretary. ‘‘(3) EXCESS ELECTRIC ENERGY.— ‘‘(A) IN GENERAL.—In the case of waste energy recovery, a grant under this section shall be made at the rate of $10 

per megawatt hour of documented electricity produced 

from recoverable waste energy (or by prevention of waste 

energy in the case of a new facility) by the project during 

the first 3 calendar years of production, beginning on or 

after the date of enactment of the Energy Independence 

and Security Act of 2007. ‘‘(B) UTILITIES.—If the project produces net excess power 

and an electric utility purchases or transmits the excess 

power, 50 percent of so much of the grant as is attributable to the net excess power shall be paid to the electric 

utility purchasing or transporting the net excess power. 

‘‘(4) USEFUL THERMAL ENERGY.—In the case of waste energy 

recovery that produces useful thermal energy that is used for 

a purpose different from that for which the project is principally designed, a grant under this section shall be made to 

the owner or operator of the waste energy recovery project at 

the rate of $10 for each 3,412,000 Btus of the excess thermal 

energy used for the different purpose. 

‘‘(c) GRANTS TO STATES.—In the case of any State that has 

achieved 80 percent or more of waste heat recovery opportunities 

identified by the Secretary under this part, the Administrator shall 

make a 1-time grant to the State in an amount of not more than 

$1,000 per megawatt of waste-heat capacity recovered (or a thermal equivalent) to support State-level programs to identify and 

achieve additional energy efficiency. 


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‘‘(d) ELIGIBILITY.—The Secretary shall— ‘‘(1) establish rules and guidelines to establish eligibility for 

grants under subsection (b); ‘‘(2) publicize the availability of the grant program known to 

owners or operators of recoverable waste energy sources and 

sites listed on the Registry; and ‘‘(3) award grants under the program on the basis of the 

merits of each project in recovering or preventing waste energy 

throughout the United States on an impartial, objective, and 

not unduly discriminatory basis. ‘‘(e) LIMITATION.—The Secretary shall not award grants to any 

person for a combined heat and power project or a waste heat recovery project that qualifies for specific Federal tax incentives for 

combined heat and power or for waste heat recovery. ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary— ‘‘(1) to make grants to projects and utilities under subsection 

(b)— ‘‘(A) $100,000,000 for fiscal year 2008 and $200,000,000 

for each of fiscal years 2009 through 2012; and ‘‘(B) such additional amounts for fiscal year 2008 and 

each fiscal year thereafter as may be necessary for administration of the waste energy recovery incentive grant program; and 

‘‘(2) to make grants to States under subsection (b), 

$10,000,000 for each of fiscal years 2008 through 2012, to remain available until expended. 

‘‘SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND PREVENTION OF INDUSTRIAL WASTE ENERGY. 

‘‘(a) CONSIDERATION OF STANDARD.— ‘‘(1) IN GENERAL.—Not later than 180 days after the receipt 

by a State regulatory authority (with respect to each electric 

utility for which the authority has ratemaking authority), or 

nonregulated electric utility, of a request from a project sponsor or owner or operator, the State regulatory authority or nonregulated electric utility shall—

‘‘(A) provide public notice and conduct a hearing respecting the standard established by subsection (b); and 

‘‘(B) on the basis of the hearing, consider and make a determination whether or not it is appropriate to implement 

the standard to carry out the purposes of this part. 

‘‘(2) RELATIONSHIP TO STATE LAW.—For purposes of any determination under paragraph (1) and any review of the determination in any court, the purposes of this section supplement 

otherwise applicable State law. 

‘‘(3) NONADOPTION OF STANDARD.—Nothing in this part prohibits any State regulatory authority or nonregulated electric 

utility from making any determination that it is not appropriate to adopt any standard described in paragraph (1), pursuant to authority under otherwise applicable State law. 

‘‘(b) STANDARD FOR SALES OF EXCESS POWER.—For purposes of 

this section, the standard referred to in subsection (a) shall provide 

that an owner or operator of a waste energy recovery project identified on the Registry that generates net excess power shall be eligible to benefit from at least 1 of the options described in subsection 


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(c) for disposal of the net excess power in accordance with the rate 

conditions and limitations described in subsection (d). ‘‘(c) OPTIONS.—The options referred to in subsection (b) are as follows: ‘‘(1) SALE OF NET EXCESS POWER TO UTILITY.—The electric 

utility shall purchase the net excess power from the owner or 

operator of the eligible waste energy recovery project during 

the operation of the project under a contract entered into for 

that purpose. ‘‘(2) TRANSPORT BY UTILITY FOR DIRECT SALE TO THIRD

PARTY.—The electric utility shall transmit the net excess power 

on behalf of the project owner or operator to up to 3 separate 

locations on the system of the utility for direct sale by the 

owner or operator to third parties at those locations. ‘‘(3) TRANSPORT OVER PRIVATE TRANSMISSION LINES.—The 

State and the electric utility shall permit, and shall waive or 

modify such laws as would otherwise prohibit, the construction 

and operation of private electric wires constructed, owned, and 

operated by the project owner or operator, to transport the 

power to up to 3 purchasers within a 3-mile radius of the 

project, allowing the wires to use or cross public rights-of-way, 

without subjecting the project to regulation as a public utility, 

and according the wires the same treatment for safety, zoning, 

land use, and other legal privileges as apply or would apply to 

the wires of the utility, except that—

‘‘(A) there shall be no grant of any power of eminent domain to take or cross private property for the wires; and 

‘‘(B) the wires shall be physically segregated and not 

interconnected with any portion of the system of the utility, except on the customer side of the revenue meter of 

the utility and in a manner that precludes any possible export of the electricity onto the utility system, or disruption 

of the system. ‘‘(4) AGREED ON ALTERNATIVES.—The utility and the owner or 

operator of the project may reach agreement on any alternate 

arrangement and payments or rates associated with the arrangement that is mutually satisfactory and in accord with 

State law. 

‘‘(d) RATE CONDITIONS AND CRITERIA.— ‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) PER UNIT DISTRIBUTION COSTS.—The term ‘per unit 

distribution costs’ means (in kilowatt hours) the quotient 

obtained by dividing—

‘‘(i) the depreciated book-value distribution system 

costs of a utility; by 

‘‘(ii) the volume of utility electricity sales or transmission during the previous year at the distribution 

level. 

‘‘(B) PER UNIT DISTRIBUTION MARGIN.—The term ‘per unit 

distribution margin’ means— ‘‘(i) in the case of a State-regulated electric utility, 

a per-unit gross pretax profit equal to the product obtained by multiplying— ‘‘(I) the State-approved percentage rate of return 

for the utility for distribution system assets; by 


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‘‘(II) the per unit distribution costs; and ‘‘(ii) in the case of a nonregulated utility, a per unit 

contribution to net revenues determined multiplying— ‘‘(I) the percentage (but not less than 10 percent) obtained by dividing— ‘‘(aa) the amount of any net revenue payment or contribution to the owners or subscribers of the nonregulated utility during the 

prior year; by ‘‘(bb) the gross revenues of the utility during the prior year to obtain a percentage; by ‘‘(II) the per unit distribution costs. ‘‘(C) PER UNIT TRANSMISSION COSTS.—The term ‘per unit 

transmission costs’ means the total cost of those transmission services purchased or provided by a utility on a 

per-kilowatt-hour basis as included in the retail rate of the 

utility. 

‘‘(2) OPTIONS.—The options described in paragraphs (1) and 

(2) in subsection (c) shall be offered under purchase and transport rate conditions that reflect the rate components defined 

under paragraph (1) as applicable under the circumstances described in paragraph (3). ‘‘(3) APPLICABLE RATES.— ‘‘(A) RATES APPLICABLE TO SALE OF NET EXCESS POWER.— ‘‘(i) IN GENERAL.—Sales made by a project owner or 

operator of a facility under the option described in 

subsection (c)(1) shall be paid for on a per kilowatt 

hour basis that shall equal the full undiscounted retail 

rate paid to the utility for power purchased by the facility minus per unit distribution costs, that applies to 

the type of utility purchasing the power. ‘‘(ii) VOLTAGES EXCEEDING 25 KILOVOLTS.—If the net 

excess power is made available for purchase at 

voltages that must be transformed to or from voltages 

exceeding 25 kilovolts to be available for resale by the 

utility, the purchase price shall further be reduced by 

per unit transmission costs. ‘‘(B) RATES APPLICABLE TO TRANSPORT BY UTILITY FOR DI- RECT SALE TO THIRD PARTIES.— ‘‘(i) IN GENERAL.—Transportation by utilities of 

power on behalf of the owner or operator of a project 

under the option described in subsection (c)(2) shall 

incur a transportation rate that shall equal the per 

unit distribution costs and per unit distribution margin, that applies to the type of utility transporting the 

power. 

‘‘(ii) VOLTAGES EXCEEDING 25 KILOVOLTS.—If the net 

excess power is made available for transportation at 

voltages that must be transformed to or from voltages 

exceeding 25 kilovolts to be transported to the designated third-party purchasers, the transport rate 

shall further be increased by per unit transmission 

costs. ‘‘(iii) STATES WITH COMPETITIVE RETAIL MARKETS FOR

ELECTRICITY.—In a State with a competitive retail 


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market for electricity, the applicable transportation 

rate for similar transportation shall be applied in lieu 

of any rate calculated under this paragraph. ‘‘(4) LIMITATIONS.— ‘‘(A) IN GENERAL.—Any rate established for sale or transportation under this section shall— ‘‘(i) be modified over time with changes in the underlying costs or rates of the electric utility; and ‘‘(ii) reflect the same time-sensitivity and billing periods as are established in the retail sales or transportation rates offered by the utility. ‘‘(B) LIMITATION.—No utility shall be required to purchase or transport a quantity of net excess power under 

this section that exceeds the available capacity of the 

wires, meter, or other equipment of the electric utility 

serving the site unless the owner or operator of the project 

agrees to pay necessary and reasonable upgrade costs. 

‘‘(e) PROCEDURAL REQUIREMENTS FOR CONSIDERATION AND DETERMINATION.—

‘‘(1) PUBLIC NOTICE AND HEARING.—

‘‘(A) IN GENERAL.—The consideration referred to in subsection (a) shall be made after public notice and hearing. ‘‘(B) ADMINISTRATION.—The determination referred to in 

subsection (a) shall be— ‘‘(i) in writing; 

‘‘(ii) based on findings included in the determination 

and on the evidence presented at the hearing; and ‘‘(iii) available to the public. ‘‘(2) INTERVENTION BY ADMINISTRATOR.—The Administrator 

may intervene as a matter of right in a proceeding conducted 

under this section—

‘‘(A) to calculate—

‘‘(i) the energy and emissions likely to be saved by 

electing to adopt 1 or more of the options; and ‘‘(ii) the costs and benefits to ratepayers and the 

utility; and ‘‘(B) to advocate for the waste-energy recovery opportunity. ‘‘(3) PROCEDURES.— ‘‘(A) IN GENERAL.—Except as otherwise provided in paragraphs (1) and (2), the procedures for the consideration 

and determination referred to in subsection (a) shall be the 

procedures established by the State regulatory authority or 

the nonregulated electric utility. 

‘‘(B) MULTIPLE PROJECTS.—If there is more than 1 

project seeking consideration simultaneously in connection 

with the same utility, the proceeding may encompass all 

such projects, if full attention is paid to individual circumstances and merits and an individual judgment is 

reached with respect to each project. ‘‘(f) IMPLEMENTATION.— ‘‘(1) IN GENERAL.—The State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility may, to the 

extent consistent with otherwise applicable State law—


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‘‘(A) implement the standard determined under this section; or ‘‘(B) decline to implement any such standard. ‘‘(2) NONIMPLEMENTATION OF STANDARD.— ‘‘(A) IN GENERAL.—If a State regulatory authority (with 

respect to each electric utility for which the authority has 

ratemaking authority) or nonregulated electric utility declines to implement any standard established by this section, the authority or nonregulated electric utility shall 

state in writing the reasons for declining to implement the 

standard. ‘‘(B) AVAILABILITY TO PUBLIC.—The statement of reasons 

shall be available to the public. ‘‘(C) ANNUAL REPORT.—The Administrator shall include 

in an annual report submitted to Congress a description of 

the lost opportunities for waste-heat recovery from the 

project described in subparagraph (A), specifically identifying the utility and stating the quantity of lost energy 

and emissions savings calculated. ‘‘(D) NEW PETITION.—If a State regulatory authority 

(with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility declines to implement the standard established by this 

section, the project sponsor may submit a new petition 

under this section with respect to the project at any time 

after the date that is 2 years after the date on which the 

State regulatory authority or nonregulated utility declined 

to implement the standard. 

‘‘SEC. 375. CLEAN ENERGY APPLICATION CENTERS. 

‘‘(a) RENAMING.— ‘‘(1) IN GENERAL.—The Combined Heat and Power Application Centers of the Department of Energy are redesignated as 

Clean Energy Application Centers. ‘‘(2) REFERENCES.—Any reference in any law, rule, regulation, or publication to a Combined Heat and Power Application 

Center shall be treated as a reference to a Clean Energy Application Center. ‘‘(b) RELOCATION.— ‘‘(1) IN GENERAL.—In order to better coordinate efforts with 

the separate Industrial Assessment Centers and to ensure that 

the energy efficiency and, when applicable, the renewable nature of deploying mature clean energy technology is fully accounted for, the Secretary shall relocate the administration of 

the Clean Energy Application Centers to the Office of Energy 

Efficiency and Renewable Energy within the Department of 

Energy. 

‘‘(2) OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY.—The Office of Electricity Delivery and Energy Reliability shall—

‘‘(A) continue to perform work on the role of technology 

described in paragraph (1) in support of the grid and the 

reliability and security of the technology; and 

‘‘(B) shall assist the Clean Energy Application Centers in 

the work of the Centers with regard to the grid and with 

electric utilities. 


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‘‘(c) GRANTS.— ‘‘(1) IN GENERAL.—The Secretary shall make grants to universities, research centers, and other appropriate institutions 

to ensure the continued operations and effectiveness of 8 Regional Clean Energy Application Centers in each of the following regions (as designated for such purposes as of the date 

of the enactment of the Energy Independence and Security Act 

of 2007): ‘‘(A) Gulf Coast. 

‘‘(B) Intermountain. 

‘‘(C) Mid-Atlantic. 

‘‘(D) Midwest. 

‘‘(E) Northeast. 

‘‘(F) Northwest. 

‘‘(G) Pacific. 

‘‘(H) Southeast. ‘‘(2) ESTABLISHMENT OF GOALS AND COMPLIANCE.—In making 

grants under this subsection, the Secretary shall ensure that 

sufficient goals are established and met by each Center 

throughout the program duration concerning outreach and 

technology deployment. 

‘‘(d) ACTIVITIES.— ‘‘(1) IN GENERAL.—Each Clean Energy Application Center 

shall—

‘‘(A) operate a program to encourage deployment of clean 

energy technologies through education and outreach to 

building and industrial professionals; and other individuals and organizations with an interest in efficient energy 

use; and ‘‘(B) provide project specific support to building and industrial professionals through assessments and advisory 

activities. ‘‘(2) TYPES OF ACTIVITIES.—Funds made available under this 

section may be used— ‘‘(A) to develop and distribute informational materials on 

clean energy technologies, including continuation of the 8 

websites in existence on the date of enactment of the Energy Independence and Security Act of 2007; ‘‘(B) to develop and conduct target market workshops, 

seminars, internet programs, and other activities to educate end users, regulators, and stakeholders in a manner 

that leads to the deployment of clean energy technologies; ‘‘(C) to provide or coordinate onsite assessments for sites 

and enterprises that may consider deployment of clean energy technology; ‘‘(D) to perform market research to identify high profile 

candidates for clean energy deployment; ‘‘(E) to provide consulting support to sites considering 

deployment of clean energy technologies; ‘‘(F) to assist organizations developing clean energy technologies to overcome barriers to deployment; and 

‘‘(G) to assist companies and organizations with performance evaluations of any clean energy technology implemented. 

‘‘(e) DURATION.—


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‘‘(1) IN GENERAL.—A grant awarded under this section shall 

be for a period of 5 years ‘‘(2) ANNUAL EVALUATIONS.—Each grant shall be evaluated 

annually for the continuation of the grant based on the activities and results of the grant. ‘‘(f) AUTHORIZATION.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 

through 2012.’’. (b) TABLE OF CONTENTS.—The table of contents of the Energy 

Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by 

inserting after the items relating to part D of title III the following: 

‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY

‘‘Sec. 371. Definitions. 

‘‘Sec. 372. Survey and Registry. 

‘‘Sec. 373.Waste energy recovery incentive grant program. 

‘‘Sec. 374. Additional incentives for recovery, utilization and prevention of industrial waste energy. 

‘‘Sec. 375. Clean Energy Application Centers.’’. 

SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— (A) an energy-intensive industry; 

(B) a national trade association representing an energyintensive industry; or 

(C) a person acting on behalf of 1 or more energy-intensive industries or sectors, as determined by the Secretary. 

(2) ENERGY-INTENSIVE INDUSTRY.—The term ‘‘energy-intensive industry’’ means an industry that uses significant quantities of energy as part of its primary economic activities, including—

(A) information technology, including data centers containing electrical equipment used in processing, storing, 

and transmitting digital information; 

(B) consumer product manufacturing; 

(C) food processing; 

(D) materials manufacturers, including—

(i) aluminum; 

(ii) chemicals; 

(iii) forest and paper products; 

(iv) metal casting; 

(v) glass; 

(vi) petroleum refining; 

(vii) mining; and 

(viii) steel; 

(E) other energy-intensive industries, as determined by 

the Secretary. 

(3) FEEDSTOCK.—The term ‘‘feedstock’’ means the raw material supplied for use in manufacturing, chemical, and biological 

processes. 

(4) PARTNERSHIP.—The term ‘‘partnership’’ means an energy 

efficiency partnership established under subsection (c)(1)(A). 

(5) PROGRAM.—The term ‘‘program’’ means the energy-intensive industries program established under subsection (b). 

(b) ESTABLISHMENT OF PROGRAM.—The Secretary shall establish 

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intensive industries and national industry trade associations representing the energy-intensive industries, shall support, research, 

develop, and promote the use of new materials processes, technologies, and techniques to optimize energy efficiency and the economic competitiveness of the United States’ industrial and commercial sectors. 

(c) PARTNERSHIPS.—

(1) IN GENERAL.—As part of the program, the Secretary shall 

establish energy efficiency partnerships between the Secretary 

and eligible entities to conduct research on, develop, and demonstrate new processes, technologies, and operating practices 

and techniques to significantly improve the energy efficiency of 

equipment and processes used by energy-intensive industries, 

including the conduct of activities to—

(A) increase the energy efficiency of industrial processes 

and facilities; 

(B) research, develop, and demonstrate advanced technologies capable of energy intensity reductions and increased environmental performance; and 

(C) promote the use of the processes, technologies, and 

techniques described in subparagraphs (A) and (B). 

(2) ELIGIBLE ACTIVITIES.—Partnership activities eligible for 

funding under this subsection include—

(A) feedstock and recycling research, development, and 

demonstration activities to identify and promote—

(i) opportunities for meeting industry feedstock requirements with more energy efficient and flexible 

sources of feedstock or energy supply; 

(ii) strategies to develop and deploy technologies 

that improve the quality and quantity of feedstocks recovered from process and waste streams; and 

(iii) other methods using recycling, reuse, and improved industrial materials; 

(B) research to develop and demonstrate technologies 

and processes that utilize alternative energy sources to 

supply heat, power, and new feedstocks for energy-intensive industries; 

(C) research to achieve energy efficiency in steam, 

power, control system, and process heat technologies, and 

in other manufacturing processes; and 

(D) industrial and commercial energy efficiency and sustainability assessments to—

(i) assist individual industrial and commercial sectors in developing tools, techniques, and methodologies 

to assess—

(I) the unique processes and facilities of the sectors; 

(II) the energy utilization requirements of the 

sectors; and 

(III) the application of new, more energy efficient technologies; and 

(ii) conduct energy savings assessments; 

(E) the incorporation of technologies and innovations 

that would significantly improve the energy efficiency and 


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utilization of energy-intensive commercial applications; 

and 

(F) any other activities that the Secretary determines to 

be appropriate. 

(3) PROPOSALS.— (A) IN GENERAL.—To be eligible for funding under this 

subsection, a partnership shall submit to the Secretary a 

proposal that describes the proposed research, development, or demonstration activity to be conducted by the 

partnership. 

(B) REVIEW.—After reviewing the scientific, technical, 

and commercial merit of a proposals submitted under subparagraph (A), the Secretary shall approve or disapprove 

the proposal. 

(C) COMPETITIVE AWARDS.—The provision of funding 

under this subsection shall be on a competitive basis. 

(4) COST-SHARING REQUIREMENT.—In carrying out this section, the Secretary shall require cost sharing in accordance 

with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 

16352). 

(d) GRANTS.—The Secretary may award competitive grants for innovative technology research, development and demonstrations to 

universities, individual inventors, and small companies, based on 

energy savings potential, commercial viability, and technical merit. 

(e) INSTITUTION OF HIGHER EDUCATION-BASED INDUSTRIAL RE- SEARCH AND ASSESSMENT CENTERS.—The Secretary shall provide 

funding to institution of higher education-based industrial research 

and assessment centers, whose purpose shall be— (1) to identify opportunities for optimizing energy efficiency 

and environmental performance; 

(2) to promote applications of emerging concepts and technologies in small and medium-sized manufacturers; 

(3) to promote research and development for the use of alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries; 

(4) to coordinate with appropriate Federal and State research offices, and provide a clearinghouse for industrial process and energy efficiency technical assistance resources; and 

(5) to coordinate with State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States. 

(f) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There are authorized to be appropriated to 

the Secretary to carry out this section—

(A) $184,000,000 for fiscal year 2008; 

(B) $190,000,000 for fiscal year 2009; 

(C) $196,000,000 for fiscal year 2010; 

(D) $202,000,000 for fiscal year 2011; 

(E) $208,000,000 for fiscal year 2012; and 

(F) such sums as are necessary for fiscal year 2013 and 

each fiscal year thereafter. 

(2) PARTNERSHIP ACTIVITIES.—Of the amounts made available under paragraph (1), not less than 50 percent shall be 

used to pay the Federal share of partnership activities under 

subsection (c). 


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(3) COORDINATION AND NONDUPLICATION.—The Secretary 

shall coordinate efforts under this section with other programs 

of the Department and other Federal agencies to avoid duplication of effort. 

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS. 

(a) DEFINITIONS.—In this section: 

(1) DATA CENTER.—The term ‘‘data center’’ means any facility that primarily contains electronic equipment used to process, store, and transmit digital information, which may be—

(A) a free-standing structure; or 

(B) a facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment. 

(2) DATA CENTER OPERATOR.—The term ‘‘data center operator’’ means any person or government entity that builds or operates a data center or purchases data center services, equipment, and facilities. 

(b) VOLUNTARY NATIONAL INFORMATION PROGRAM.—

(1) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary and the Administrator of the 

Environmental Protection Agency shall, after consulting with 

information technology industry and other interested parties, 

initiate a voluntary national information program for those 

types of data centers and data center equipment and facilities 

that are widely used and for which there is a potential for significant data center energy savings as a result of the program. 

(2) REQUIREMENTS.—The program described in paragraph (1) 

shall—

(A) address data center efficiency holistically, reflecting 

the total energy consumption of data centers as whole systems, including both equipment and facilities; 

(B) consider prior work and studies undertaken in this 

area, including by the Environmental Protection Agency 

and the Department of Energy; 

(C) consistent with the objectives described in paragraph 

(1), determine the type of data center and data center 

equipment and facilities to be covered under the program; 

(D) produce specifications, measurements, best practices, 

and benchmarks that will enable data center operators to 

make more informed decisions about the energy efficiency 

and costs of data centers, and that take into account—

(i) the performance and use of servers, data storage 

devices, and other information technology equipment; 

(ii) the efficiency of heating, ventilation, and air conditioning, cooling, and power conditioning systems, 

provided that no modification shall be required of a 

standard then in effect under the Energy Policy and 

Conservation Act (42 U.S.C. 6201 et seq.) for any covered heating, ventilation, air-conditioning, cooling or 

power-conditioning product; 

(iii) energy savings from the adoption of software 

and data management techniques; and 

(iv) other factors determined by the organization described in subsection (c); 


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(E) allow for creation of separate specifications, measurements, and benchmarks based on data center size and 

function, as well as other appropriate characteristics; 

(F) advance the design and implementation of efficiency 

technologies to the maximum extent economically practical; 

(G) provide to data center operators in the private sector 

and the Federal Government information about best practices and purchasing decisions that reduce the energy consumption of data centers; and 

(H) publish the information described in subparagraph 

(G), which may be disseminated through catalogs, trade 

publications, the Internet, or other mechanisms, that will 

allow data center operators to assess the energy consumption and potential cost savings of alternative data centers 

and data center equipment and facilities. 

(3) PROCEDURES.—The program described in paragraph (1) 

shall be developed in consultation with and coordinated by the 

organization described in subsection (c) according to commonly 

accepted procedures for the development of specifications, 

measurements, and benchmarks. 

(c) DATA CENTER EFFICIENCY ORGANIZATION.— (1) IN GENERAL.—After the establishment of the program described in subsection (b), the Secretary and the Administrator 

shall jointly designate an information technology industry organization to consult with and to coordinate the program. 

(2) REQUIREMENTS.—The organization designated under 

paragraph (1), whether preexisting or formed specifically for 

the purposes of subsection (b), shall— (A) consist of interested parties that have expertise in 

energy efficiency and in the development, operation, and 

functionality of computer data centers, information technology equipment, and software, as well as representatives 

of hardware manufacturers, data center operators, and facility managers; 

(B) obtain and address input from Department of Energy 

National Laboratories or any college, university, research 

institution, industry association, company, or public interest group with applicable expertise in any of the areas listed in paragraph (1); 

(C) follow commonly accepted procedures for the development of specifications and accredited standards development processes; 

(D) have a mission to develop and promote energy efficiency for data centers and information technology; and 

(E) have the primary responsibility to consult in the development and publishing of the information, measurements, and benchmarks described in subsection (b) and 

transmission of the information to the Secretary and the 

Administrator for consideration under subsection (d). 

(d) MEASUREMENTS AND SPECIFICATIONS.— (1) IN GENERAL.—The Secretary and the Administrator shall 

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ciency programs of the Department of Energy and Environmental Protection Agency, respectively. 

(2) REJECTIONS.—If the Secretary or the Administrator rejects 1 or more specifications, measurements, or benchmarks 

described in subsection (b), the rejection shall be made consistent with section 12(d) of the National Technology Transfer 

and Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 

104–113). 

(3) DETERMINATION OF IMPRACTICABILITY.—A determination 

that a specification, measurement, or benchmark described in 

subsection (b) is impractical may include consideration of the 

maximum efficiency that is technologically feasible and economically justified. 

(e) MONITORING.—The Secretary and the Administrator shall—

(1) monitor and evaluate the efforts to develop the program 

described in subsection (b); and 

(2) not later than 3 years after the date of enactment of this 

Act, make a determination as to whether the program is consistent with the objectives of subsection (b). 

(f) ALTERNATIVE SYSTEM.—If the Secretary and the Administrator make a determination under subsection (e) that a voluntary 

national information program for data centers consistent with the 

objectives of subsection (b) has not been developed, the Secretary 

and the Administrator shall, after consultation with the National 

Institute of Standards and Technology and not later than 2 years 

after the determination, develop and implement the program under 

subsection (b). 

(g) PROTECTION OF PROPRIETARY INFORMATION.—The Secretary, 

the Administrator, or the data center efficiency organization shall 

not disclose any proprietary information or trade secrets provided 

by any individual or company for the purposes of carrying out this 

section or the program established under this section. 

Subtitle E—Healthy High-Performance Schools 

SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS. 

(a) AMENDMENT.—The Toxic Substances Control Act (15 U.S.C. 

2601 et seq.) is amended by adding at the end the following new 

title: 

‘‘TITLE V—HEALTHY HIGH-PERFORMANCE SCHOOLS 

‘‘SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS. 

‘‘(a) IN GENERAL.—The Administrator, in consultation with the 

Secretary of Education, may provide grants to States for use in—

‘‘(1) providing technical assistance for programs of the Environmental Protection Agency (including the Tools for Schools 

Program and the Healthy School Environmental Assessment 

Tool) to schools for use in addressing environmental issues; 

and ‘‘(2) development and implementation of State school environmental health programs that include— ‘‘(A) standards for school building design, construction, 

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stances, and pollutant emissions, in the State and recommended solutions to address those problems, including 

assessment of information on the exposure of children to 

environmental hazards in school facilities. ‘‘(b) SUNSET.—The authority of the Administrator to carry out 

this section shall expire 5 years after the date of enactment of this 

section. 

‘‘SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES. 

‘‘Not later than 18 months after the date of enactment of this 

section, the Administrator, in consultation with the Secretary of 

Education and the Secretary of Health and Human Services, shall 

issue voluntary school site selection guidelines that account for— ‘‘(1) the special vulnerability of children to hazardous substances or pollution exposures in any case in which the potential for contamination at a potential school site exists; ‘‘(2) modes of transportation available to students and staff; 

‘‘(3) the efficient use of energy; and 

‘‘(4) the potential use of a school at the site as an emergency 

shelter. 

‘‘SEC. 503. PUBLIC OUTREACH. 

‘‘(a) REPORTS.—The Administrator shall publish and submit to 

Congress an annual report on all activities carried out under this 

title, until the expiration of authority described in section 501(b). 

‘‘(b) PUBLIC OUTREACH.—The Federal Director appointed under 

section 436(a) of the Energy Independence and Security Act of 2007 

(in this title referred to as the ‘Federal Director’) shall ensure, to 

the maximum extent practicable, that the public clearinghouse established under section 423(1) of the Energy Independence and Security Act of 2007 receives and makes available information on the 

exposure of children to environmental hazards in school facilities, 

as provided by the Administrator. 

‘‘SEC. 504. ENVIRONMENTAL HEALTH PROGRAM. 

‘‘(a) IN GENERAL.—Not later than 2 years after the date of enactment of this section, the Administrator, in consultation with the 

Secretary of Education, the Secretary of Health and Human Services, and other relevant agencies, shall issue voluntary guidelines 

for use by the State in developing and implementing an environmental health program for schools that—

‘‘(1) takes into account the status and findings of Federal initiatives established under this title or subtitle C of title IV of 

the Energy Independence and Security Act of 2007 and other 

relevant Federal law with respect to school facilities, including 

relevant updates on trends in the field, such as the impact of 

school facility environments on student and staff—

‘‘(A) health, safety, and productivity; and 

‘‘(B) disabilities or special needs; 

‘‘(2) takes into account studies using relevant tools identified 

or developed in accordance with section 492 of the Energy 

Independence and Security Act of 2007; 

‘‘(3) takes into account, with respect to school facilities, each 

of—

‘‘(A) environmental problems, contaminants, hazardous 

substances, and pollutant emissions, including—

‘‘(i) lead from drinking water; 


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‘‘(ii) lead from materials and products; 

‘‘(iii) asbestos; 

‘‘(iv) radon; 

‘‘(v) the presence of elemental mercury releases from 

products and containers; ‘‘(vi) pollutant emissions from materials and products; and ‘‘(vii) any other environmental problem, contaminant, hazardous substance, or pollutant emission that 

present or may present a risk to the health of occupants of the school facilities or environment; ‘‘(B) natural day lighting; 

‘‘(C) ventilation choices and technologies; 

‘‘(D) heating and cooling choices and technologies; 

‘‘(E) moisture control and mold; 

‘‘(F) maintenance, cleaning, and pest control activities; 

‘‘(G) acoustics; and 

‘‘(H) other issues relating to the health, comfort, productivity, and performance of occupants of the school facilities; ‘‘(4) provides technical assistance on siting, design, management, and operation of school facilities, including facilities used 

by students with disabilities or special needs; ‘‘(5) collaborates with federally funded pediatric environmental health centers to assist in on-site school environmental 

investigations; ‘‘(6) assists States and the public in better understanding 

and improving the environmental health of children; and ‘‘(7) takes into account the special vulnerability of children in 

low-income and minority communities to exposures from contaminants, hazardous substances, and pollutant emissions. ‘‘(b) PUBLIC OUTREACH.—The Federal Director and Commercial 

Director shall ensure, to the maximum extent practicable, that the 

public clearinghouse established under section 423 of the Energy 

Independence and Security Act of 2007 receives and makes available—‘‘(1) information from the Administrator that is contained in 

the report described in section 503(a); and ‘‘(2) information on the exposure of children to environmental 

hazards in school facilities, as provided by the Administrator. 

‘‘SEC. 505. AUTHORIZATION OF APPROPRIATIONS. 

‘‘There are authorized to be appropriated to carry out this title $1,000,000 for fiscal year 2009, and $1,500,000 for each of fiscal 

years 2010 through 2013, to remain available until expended.’’. (b) TABLE OF CONTENTS AMENDMENT.—The table of contents for 

the Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is amended by adding at the end the following: 

‘‘TITLE V—HEALTHY HIGH-PERFORMANCE SCHOOLS 

‘‘Sec. 501. Grants for healthy school environments. 

‘‘Sec. 502. Model guidelines for siting of school facilities. 

‘‘Sec. 503. Public outreach. 

‘‘Sec. 504. Environmental health program. 

‘‘Sec. 505. Authorization of appropriations.’’. 

SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS. 

(a) IN GENERAL.—The Administrator of the Environmental Protection Agency shall enter into an arrangement with the Secretary 


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of Education and the Secretary of Energy to conduct a detailed 

study of how sustainable building features such as energy efficiency affect multiple perceived indoor environmental quality 

stressors on students in K–12 schools. 

(b) CONTENTS.—The study shall—

(1) investigate the combined effect building stressors such as 

heating, cooling, humidity, lighting, and acoustics have on 

building occupants’ health, productivity, and overall well-being; 

(2) identify how sustainable building features, such as energy efficiency, are influencing these human outcomes singly 

and in concert; and 

(3) ensure that the impacts of the indoor environmental 

quality are evaluated as a whole. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated for carrying out this section $200,000 for each of 

the fiscal years 2008 through 2012. 

Subtitle F—Institutional Entities 

SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND 

LOANS FOR INSTITUTIONS. 

Part G of title III of the Energy Policy and Conservation Act is 

amended by inserting after section 399 (42 U.S.C. 6371h) the following: 

‘‘SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND 

LOANS FOR INSTITUTIONS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) COMBINED HEAT AND POWER.—The term ‘combined heat 

and power’ means the generation of electric energy and heat in 

a single, integrated system, with an overall thermal efficiency 

of 60 percent or greater on a higher-heating-value basis. 

‘‘(2) DISTRICT ENERGY SYSTEMS.—The term ‘district energy 

systems’ means systems providing thermal energy from a renewable energy source, thermal energy source, or highly efficient technology to more than 1 building or fixed energy-consuming use from 1 or more thermal-energy production facilities 

through pipes or other means to provide space heating, space 

conditioning, hot water, steam, compression, process energy, or 

other end uses for that energy. 

‘‘(3) ENERGY SUSTAINABILITY.—The term ‘energy sustainability’ includes using a renewable energy source, thermal energy source, or a highly efficient technology for transportation, 

electricity generation, heating, cooling, lighting, or other energy services in fixed installations. 

‘‘(4) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ has the meaning given the term in 

section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801). 

‘‘(5) INSTITUTIONAL ENTITY.—The term ‘institutional entity’

means an institution of higher education, a public school district, a local government, a municipal utility, or a designee of 

1 of those entities. 

‘‘(6) RENEWABLE ENERGY SOURCE.—The term ‘renewable energy source’ has the meaning given the term in section 609 of 

the Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 

918c). 


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‘‘(7) SUSTAINABLE ENERGY INFRASTRUCTURE.—The term ‘sustainable energy infrastructure’ means—

‘‘(A) facilities for production of energy from renewable 

energy sources, thermal energy sources, or highly efficient 

technologies, including combined heat and power or other 

waste heat use; and 

‘‘(B) district energy systems. 

‘‘(8) THERMAL ENERGY SOURCE.—The term ‘thermal energy 

source’ means—

‘‘(A) a natural source of cooling or heating from lake or 

ocean water; and 

‘‘(B) recovery of useful energy that would otherwise be 

wasted from ongoing energy uses. 

‘‘(b) TECHNICAL ASSISTANCE GRANTS.—

‘‘(1) IN GENERAL.—Subject to the availability of appropriated 

funds, the Secretary shall implement a program of information 

dissemination and technical assistance to institutional entities 

to assist the institutional entities in identifying, evaluating, designing, and implementing sustainable energy infrastructure 

projects in energy sustainability. 

‘‘(2) ASSISTANCE.—The Secretary shall support institutional 

entities in—

‘‘(A) identification of opportunities for sustainable energy 

infrastructure; 

‘‘(B) understanding the technical and economic characteristics of sustainable energy infrastructure; 

‘‘(C) utility interconnection and negotiation of power and 

fuel contracts; 

‘‘(D) understanding financing alternatives; 

‘‘(E) permitting and siting issues; 

‘‘(F) obtaining case studies of similar and successful sustainable energy infrastructure systems; and 

‘‘(G) reviewing and obtaining computer software for assessment, design, and operation and maintenance of sustainable energy infrastructure systems. 

‘‘(3) ELIGIBLE COSTS FOR TECHNICAL ASSISTANCE GRANTS.—On 

receipt of an application of an institutional entity, the Secretary may make grants to the institutional entity to fund a 

portion of the cost of—

‘‘(A) feasibility studies to assess the potential for implementation or improvement of sustainable energy infrastructure; 

‘‘(B) analysis and implementation of strategies to overcome barriers to project implementation, including financial, contracting, siting, and permitting barriers; and 

‘‘(C) detailed engineering of sustainable energy infrastructure. 

‘‘(c) GRANTS FOR ENERGY EFFICIENCY IMPROVEMENT AND ENERGY

SUSTAINABILITY.—

‘‘(1) GRANTS.—

‘‘(A) IN GENERAL.—The Secretary shall award grants to 

institutional entities to carry out projects to improve energy efficiency on the grounds and facilities of the institutional entity. 


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‘‘(B) REQUIREMENT.—To the extent that applications 

have been submitted, grants under subparagraph (A) shall 

include not less than 1 grant each year to an institution 

of higher education in each State. 

‘‘(C) MINIMUM FUNDING.—Not less than 50 percent of the 

total funding for all grants under this subsection shall be 

awarded in grants to institutions of higher education. 

‘‘(2) CRITERIA.—Evaluation of projects for grant funding shall 

be based on criteria established by the Secretary, including criteria relating to—

‘‘(A) improvement in energy efficiency; 

‘‘(B) reduction in greenhouse gas emissions and other air 

emissions, including criteria air pollutants and ozone-depleting refrigerants; 

‘‘(C) increased use of renewable energy sources or thermal energy sources; 

‘‘(D) reduction in consumption of fossil fuels; 

‘‘(E) active student participation; and 

‘‘(F) need for funding assistance. 

‘‘(3) CONDITION.—As a condition of receiving a grant under 

this subsection, an institutional entity shall agree—

‘‘(A) to implement a public awareness campaign concerning the project in the community in which the institutional entity is located; and 

‘‘(B) to submit to the Secretary, and make available to 

the public, reports on any efficiency improvements, energy 

cost savings, and environmental benefits achieved as part 

of a project carried out under paragraph (1), including 

quantification of the results relative to the criteria described under paragraph (2). 

‘‘(d) GRANTS FOR INNOVATION IN ENERGY SUSTAINABILITY.—

‘‘(1) GRANTS.—

‘‘(A) IN GENERAL.—The Secretary shall award grants to 

institutional entities to engage in innovative energy sustainability projects. 

‘‘(B) REQUIREMENT.—To the extent that applications 

have been submitted, grants under subparagraph (A) shall 

include not less than 2 grants each year to institutions of 

higher education in each State. 

‘‘(C) MINIMUM FUNDING.—Not less than 50 percent of the 

total funding for all grants under this subsection shall be 

awarded in grants to institutions of higher education. 

‘‘(2) INNOVATION PROJECTS.—An innovation project carried 

out with a grant under this subsection shall—

‘‘(A) involve—

‘‘(i) an innovative technology that is not yet commercially available; or 

‘‘(ii) available technology in an innovative application that maximizes energy efficiency and sustainability; 

‘‘(B) have the greatest potential for testing or demonstrating new technologies or processes; and 

‘‘(C) to the extent undertaken by an institution of higher 

education, ensure active student participation in the 


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project, including the planning, implementation, evaluation, and other phases of projects. 

‘‘(3) CONDITION.—As a condition of receiving a grant under 

this subsection, an institutional entity shall agree to submit to 

the Secretary, and make available to the public, reports that 

describe the results of the projects carried out using grant 

funds. 

‘‘(e) ALLOCATION TO INSTITUTIONS OF HIGHER EDUCATION WITH

SMALL ENDOWMENTS.—

‘‘(1) IN GENERAL.—Of the total amount of grants provided to 

institutions of higher education for a fiscal year under this section, the Secretary shall provide not less than 50 percent of the 

amount to institutions of higher education that have an endowment of not more than $100,000,000. 

‘‘(2) REQUIREMENT.—To the extent that applications have 

been submitted, at least 50 percent of the amount described in 

paragraph (1) shall be provided to institutions of higher education that have an endowment of not more than $50,000,000. 

‘‘(f) GRANT AMOUNTS.—

‘‘(1) IN GENERAL.—If the Secretary determines that cost sharing is appropriate, the amounts of grants provided under this 

section shall be limited as provided in this subsection. 

‘‘(2) TECHNICAL ASSISTANCE GRANTS.—In the case of grants 

for technical assistance under subsection (b), grant funds shall 

be available for not more than—

‘‘(A) an amount equal to the lesser of—

‘‘(i) $50,000; or 

‘‘(ii) 75 percent of the cost of feasibility studies to assess the potential for implementation or improvement 

of sustainable energy infrastructure; 

‘‘(B) an amount equal to the lesser of—

‘‘(i) $90,000; or 

‘‘(ii) 60 percent of the cost of guidance on overcoming 

barriers to project implementation, including financial, 

contracting, siting, and permitting barriers; and 

‘‘(C) an amount equal to the lesser of—

‘‘(i) $250,000; or 

‘‘(ii) 40 percent of the cost of detailed engineering 

and design of sustainable energy infrastructure. 

‘‘(3) GRANTS FOR EFFICIENCY IMPROVEMENT AND ENERGY SUSTAINABILITY.—In the case of grants for efficiency improvement 

and energy sustainability under subsection (c), grant funds 

shall be available for not more than an amount equal to the 

lesser of—

‘‘(A) $1,000,000; or 

‘‘(B) 60 percent of the total cost. 

‘‘(4) GRANTS FOR INNOVATION IN ENERGY SUSTAINABILITY.—In 

the case of grants for innovation in energy sustainability under 

subsection (d), grant funds shall be available for not more than 

an amount equal to the lesser of—

‘‘(A) $500,000; or 

‘‘(B) 75 percent of the total cost. 

‘‘(g) LOANS FOR ENERGY EFFICIENCY IMPROVEMENT AND ENERGY

SUSTAINABILITY.—


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‘‘(1) IN GENERAL.—Subject to the availability of appropriated 

funds, the Secretary shall provide loans to institutional entities 

for the purpose of implementing energy efficiency improvements and sustainable energy infrastructure. 

‘‘(2) TERMS AND CONDITIONS.—

‘‘(A) IN GENERAL.—Except as otherwise provided in this 

paragraph, loans made under this subsection shall be on 

such terms and conditions as the Secretary may prescribe. 

‘‘(B) MATURITY.—The final maturity of loans made within a period shall be the lesser of, as determined by the Secretary—

‘‘(i) 20 years; or 

‘‘(ii) 90 percent of the useful life of the principal 

physical asset to be financed by the loan. 

‘‘(C) DEFAULT.—No loan made under this subsection may 

be subordinated to another debt contracted by the institutional entity or to any other claims against the institutional entity in the case of default. 

‘‘(D) BENCHMARK INTEREST RATE.—

‘‘(i) IN GENERAL.—Loans under this subsection shall 

be at an interest rate that is set by reference to a 

benchmark interest rate (yield) on marketable Treasury securities with a similar maturity to the direct 

loans being made. 

‘‘(ii) MINIMUM.—The minimum interest rate of loans 

under this subsection shall be at the interest rate of 

the benchmark financial instrument. 

‘‘(iii) NEW LOANS.—The minimum interest rate of 

new loans shall be adjusted each quarter to take account of changes in the interest rate of the benchmark 

financial instrument. 

‘‘(E) CREDIT RISK.—The Secretary shall—

‘‘(i) prescribe explicit standards for use in periodically assessing the credit risk of making direct loans 

under this subsection; and 

‘‘(ii) find that there is a reasonable assurance of repayment before making a loan. 

‘‘(F) ADVANCE BUDGET AUTHORITY REQUIRED.—New direct loans may not be obligated under this subsection except to the extent that appropriations of budget authority 

to cover the costs of the new direct loans are made in advance, as required by section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c). 

‘‘(3) CRITERIA.—Evaluation of projects for potential loan 

funding shall be based on criteria established by the Secretary, 

including criteria relating to—

‘‘(A) improvement in energy efficiency; 

‘‘(B) reduction in greenhouse gas emissions and other air 

emissions, including criteria air pollutants and ozone-depleting refrigerants; 

‘‘(C) increased use of renewable electric energy sources 

or renewable thermal energy sources; 

‘‘(D) reduction in consumption of fossil fuels; and 


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‘‘(E) need for funding assistance, including consideration 

of the size of endowment or other financial resources available to the institutional entity. ‘‘(4) LABOR STANDARDS.— ‘‘(A) IN GENERAL.—All laborers and mechanics employed 

by contractors or subcontractors in the performance of construction, repair, or alteration work funded in whole or in 

part under this section shall be paid wages at rates not 

less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor 

in accordance with sections 3141 through 3144, 3146, and 

3147 of title 40, United States Code. The Secretary shall 

not approve any such funding without first obtaining adequate assurance that required labor standards will be 

maintained upon the construction work. ‘‘(B) AUTHORITY AND FUNCTIONS.—The Secretary of 

Labor shall have, with respect to the labor standards specified in paragraph (1), the authority and functions set forth 

in Reorganization Plan Number 14 of 1950 (15 Fed. Reg. 

3176; 64 Stat. 1267) and section 3145 of title 40, United 

States Code. ‘‘(h) PROGRAM PROCEDURES.—Not later than 180 days after the 

date of enactment of this section, the Secretary shall establish procedures for the solicitation and evaluation of potential projects for 

grant and loan funding and administration of the grant and loan 

programs. ‘‘(i) AUTHORIZATION.— ‘‘(1) GRANTS.—There is authorized to be appropriated for the 

cost of grants authorized in subsections (b), (c), and (d) 

$250,000,000 for each of fiscal years 2009 through 2013, of 

which not more than 5 percent may be used for administrative 

expenses. 

‘‘(2) LOANS.—There is authorized to be appropriated for the 

initial cost of direct loans authorized in subsection (g) 

$500,000,000 for each of fiscal years 2009 through 2013, of 

which not more than 5 percent may be used for administrative 

expenses.’’. 

Subtitle G—Public and Assisted Housing 

SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION 

CODE TO PUBLIC AND ASSISTED HOUSING. 

Section 109 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) is amended—

(1) in subsection (a)—

(A) in paragraph (1)(C), by striking, ‘‘, where such standards are determined to be cost effective by the Secretary 

of Housing and Urban Development’’; and 

(B) in the first sentence of paragraph (2)—

(i) by striking ‘‘Council of American Building Officials Model Energy Code, 1992’’ and inserting ‘‘2006 

International Energy Conservation Code’’; and 

(ii) by striking ‘‘, and, with respect to rehabilitation 

and new construction of public and assisted housing 

funded by HOPE VI revitalization grants under section 24 of the United States Housing Act of 1937 (42 


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U.S.C. 1437v), the 2003 International Energy Conservation Code’’; 

(2) in subsection (b)—

(A) in the heading, by striking ‘‘MODEL ENERGY 

CODE.—’’ and inserting ‘‘INTERNATIONAL ENERGY 

CONSERVATION CODE.—’’; 

(B) by inserting ‘‘and rehabilitation’’ after ‘‘all new construction’’; and 

(C) by striking ‘‘, and, with respect to rehabilitation and 

new construction of public and assisted housing funded by 

HOPE VI revitalization grants under section 24 of the 

United States Housing Act of 1937 (42 U.S.C. 1437v), the 

2003 International Energy Conservation Code’’; 

(3) in subsection (c)—

(A) in the heading, by striking ‘‘MODEL ENERGY 

CODE AND’’; and 

(B) by striking ‘‘, or, with respect to rehabilitation and 

new construction of public and assisted housing funded by 

HOPE VI revitalization grants under section 24 of the 

United States Housing Act of 1937 (42 U.S.C. 1437v), the 

2003 International Energy Conservation Code’’; 

(4) by adding at the end the following: 

‘‘(d) FAILURE TO AMEND THE STANDARDS.—If the Secretary of 

Housing and Urban Development and the Secretary of Agriculture 

have not, within 1 year after the requirements of the 2006 IECC 

or the ASHRAE Standard 90.1–2004 are revised, amended the 

standards or made a determination under subsection (c), all new 

construction and rehabilitation of housing specified in subsection 

(a) shall meet the requirements of the revised code or standard if—

‘‘(1) the Secretary of Housing and Urban Development or the 

Secretary of Agriculture make a determination that the revised 

codes do not negatively affect the availability or affordability of 

new construction of assisted housing and single family and 

multifamily residential housing (other than manufactured 

homes) subject to mortgages insured under the National Housing Act (12 U.S.C. 1701 et seq.) or insured, guaranteed, or 

made by the Secretary of Agriculture under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), respectively; and 

‘‘(2) the Secretary of Energy has made a determination under 

section 304 of the Energy Conservation and Production Act (42 

U.S.C. 6833) that the revised code or standard would improve 

energy efficiency.’’; 

(5) by striking ‘‘CABO Model Energy Code, 1992’’ each place 

it appears and inserting ‘‘the 2006 IECC’’; and 

(6) by striking ‘‘1989’’ each place it appears and inserting 

‘‘2004’’. 

Subtitle H—General Provisions 

SEC. 491. DEMONSTRATION PROJECT. 

(a) IN GENERAL.—The Federal Director and the Commercial Director shall establish guidelines to implement a demonstration 

project to contribute to the research goals of the Office of Commercial High-Performance Green Buildings and the Office of Federal 

High-Performance Green Buildings. 


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(b) PROJECTS.—In accordance with guidelines established by the 

Federal Director and the Commercial Director under subsection (a) 

and the duties of the Federal Director and the Commercial Director 

described in this title, the Federal Director or the Commercial Director shall carry out— (1) for each of fiscal years 2009 through 2014, 1 demonstration project per year of green features in a Federal building selected by the Federal Director in accordance with relevant 

agencies and described in subsection (c)(1), that— (A) provides for instrumentation, monitoring, and data 

collection related to the green features, for study of the impact of the features on overall enrgy use and operational 

costs, and for the evaluation of the information obtained 

through the conduct of projects and activities under this 

title; and 

(B) achieves the highest rating offered by the high performance green building system identified pursuant to section 436(h); 

(2) no fewer than 4 demonstration projects at 4 universities, 

that, as competitively selected by the Commercial Director in 

accordance with subsection (c)(2), have— (A) appropriate research resources and relevant projects 

to meet the goals of the demonstration project established 

by the Office of Commercial High-Performance Green 

Buildings; and 

(B) the ability— (i) to serve as a model for high-performance green 

building initiatives, including research and education 

by achieving the highest rating offered by the high 

performance green building system identified pursuant 

to section 436(h); 

(ii) to identify the most effective ways o use highperformance green building and landscape technologies to engage and educate undergraduate and 

graduate students; 

(iii) to effectively implement a high-performance 

green building education program for students and occupants; 

(iv) to demonstrate the effectiveness of various highperformance technologies, including their impacts on 

energy use and operational costs, in each of the 4 climatic regions of the United States described in subsection (c)(2)(B); and 

(v) to explore quantifiable and nonquantifiable beneficial impacts on public health and employee and student performance; 

(3) demonstration projects to evaluate replicable approaches 

of achieving high performance in actual building operation in 

various types of commercial buildings in various climates; and 

(4) deployment activities to disseminate information on and 

encourage widespread adoption of technologies, practices, and 

policies to achieve zero-net-energy commercial buildings or low 

energy use and effective monitoring of energy use in commercial buildings. 

(c) CRITERIA.—


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(1) FEDERAL FACILITIES.—With respect to the existing or proposed Federal facility at which a demonstration project under 

this section is conducted, the Federal facility shall— (A) be an appropriate model for a project relating to— (i) the effectiveness of high-performance technologies; 

(ii) analysis of materials, components, systems, and 

emergency operations in the building, and the impact 

of those materials, components, and systems, including 

the impact on the health of building occupants; 

(iii) life-cycle costing and life-cycle assessment of 

building materials and systems; and 

(iv) location and design that promote access to the 

Federal facility through walking, biking, and mass 

transit; and 

(B) possess sufficient technological and organizational 

adaptability. 

(2) UNIVERSITIES.—With respect to the 4 universities at 

which a demonstration project under this section is conducted—

(A) the universities should be selected, after careful review of all applications received containing the required 

information, as determined by the Commercial Director, 

based on—(i) successful and established public-private research 

and development partnerships; 

(ii) demonstrated capabilities to construct or renovate buildings that meet high indoor environmental 

quality standards; 

(iii) organizational flexibility; 

(iv) technological adaptability; 

(v) the demonstrated capacity of at least 1 university to replicate lessons learned among nearby or sister universities, preferably by participation in groups 

or consortia that promote sustainability; 

(vi) the demonstrated capacity of at least 1 university to have officially-adopted, institution-wide ‘‘highperformance green building’’ guidelines for all campus 

building projects; and 

(vii) the demonstrated capacity of at least 1 university to have been recognized by similar institutions as 

a national leader in sustainability education and curriculum for students of the university; and 

(B) each university shall be located in a different climatic region of the United States, each of which regions 

shall have, as determined by the Office of Commercial 

High-Performance Green Buildings—

(i) a hot, dry climate; 

(ii) a hot, humid climate; 

(iii) a cold climate; or 

(iv) a temperate climate (including a climate with 

cold winters and humid summers). 

(d) APPLICATIONS.—To receive a grant under subsection (b), an 

eligible applicant shall submit to the Federal Director or the Commercial Director an application at such time, in such manner, and 


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containing such information as the Director may require, including 

a written assurance that all laborers and mechanics employed by 

contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a grant under this section shall be paid wages at rates not less than those prevailing on 

similar construction in the locality, as determined by the Secretary 

of Labor in accordance with sections 3141 through 3144, 3146, and 

3147 of title 40, United States Code. The Secretary of Labor shall, 

with respect to the labor standards described in this subsection, 

have the authority and functions set forth in Reorganization Plan 

Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, 

United States Code. 

(e) REPORT.—Not later than 1 year after the date of enactment 

of this Act, and annually thereafter through September 30, 2014—

(1) the Federal Director and the Commercial Director shall 

submit to the Secretary a report that describes the status of 

the demonstration projects; and 

(2) each University at which a demonstration project under 

this section is conducted shall submit to the Secretary a report 

that describes the status of the demonstration projects under 

this section. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out the demonstration project described in 

section (b)(1) $10,000,000 for the period of fiscal years 2008 

through 2012, and to carry out the demonstration project described 

in section (b)(2), $10,000,000 for the period of fiscal years 2008 

through 2012, to remain available until expended. 

SEC. 492. RESEARCH AND DEVELOPMENT. 

(a) ESTABLISHMENT.—The Federal Director and the Commercial 

Director, jointly and in coordination with the Advisory Committee, 

shall—

(1)(A) survey existing research and studies relating to highperformance green buildings; and 

(B) coordinate activities of common interest; 

(2) develop and recommend a high-performance green building research plan that—

(A) identifies information and research needs, including 

the relationships between human health, occupant productivity, safety, security, and accessibility and each of—

(i) emissions from materials and products in the 

building; 

(ii) natural day lighting; 

(iii) ventilation choices and technologies; 

(iv) heating, cooling, and system control choices and 

technologies; 

(v) moisture control and mold; 

(vi) maintenance, cleaning, and pest control activities; 

(vii) acoustics; 

(viii) access to public transportation; and 

(ix) other issues relating to the health, comfort, productivity, and performance of occupants of the building; 


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(B) promotes the development and dissemination of 

high-performance green building measurement tools that, 

at a minimum, may be used— (i) to monitor and assess the life-cycle performance 

of facilities (including demonstration projects) built as 

high-performance green buildings; and 

(ii) to perform life-cycle assessments; and 

(C) identifies and tests new and emerging technologies 

for high performance green buildings; 

(3) assist the budget and life-cycle costing functions of the 

Directors’ Offices under section 436(d); 

(4) study and identify potential benefits of green buildings 

relating to security, natural disaster, and emergency needs of 

the Federal Government; and 

(5) support other research initiatives determined by the Directors’ Offices. 

(b) INDOOR AIR QUALITY.—The Federal Director, in consultation 

with the Administrator of the Environmental Protection Agency 

and the Advisory Committee, shall develop and carry out a comprehensive indoor air quality program for all Federal facilities to 

ensure the safety of Federal workers and facility occupants— (1) during new construction and renovation of facilities; and 

(2) in existing facilities. 

SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION 

GRANT PROGRAM FOR LOCAL GOVERNMENTS. 

Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is amended 

by adding at the end the following: 

‘‘SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL GOVERNMENTS. 

‘‘(a) GRANT PROGRAM.— ‘‘(1) IN GENERAL.—The Administrator shall establish a demonstration program under which the Administrator shall provide competitive grants to assist local governments (such as 

municipalities and counties), with respect to local government 

buildings— ‘‘(A) to deploy cost-effective technologies and practices; 

and ‘‘(B) to achieve operational cost savings, through the application of cost-effective technologies and practices, as 

verified by the Administrator. ‘‘(2) COST SHARING.—

‘‘(A) IN GENERAL.—The Federal share of the cost of an 

activity carried out using a grant provided under this section shall be 40 percent. 

‘‘(B) WAIVER OF NON-FEDERAL SHARE.—The Administrator may waive up to 100 percent of the local share of 

the cost of any grant under this section should the Administrator determine that the community is economically distressed, pursuant to objective economic criteria established 

by the Administrator in published guidelines. 

‘‘(3) MAXIMUM AMOUNT.—The amount of a grant provided 

under this subsection shall not exceed $1,000,000. 

‘‘(b) GUIDELINES.—

‘‘(1) IN GENERAL.—Not later than 1 year after the date of enactment of this section, the Administrator shall issue guideVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00171 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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lines to implement the grant program established under subsection (a). 

‘‘(2) REQUIREMENTS.—The guidelines under paragraph (1) 

shall establish—

‘‘(A) standards for monitoring and verification of operational cost savings through the application of cost-effective technologies and practices reported by grantees under 

this section; 

‘‘(B) standards for grantees to implement training programs, and to provide technical assistance and education, 

relating to the retrofit of buildings using cost-effective 

technologies and practices; and 

‘‘(C) a requirement that each local government that receives a grant under this section shall achieve facility-wide 

cost savings, through renovation of existing local government buildings using cost-effective technologies and practices, of at least 40 percent as compared to the baseline 

operational costs of the buildings before the renovation (as 

calculated assuming a 3-year, weather-normalized average). 

‘‘(c) COMPLIANCE WITH STATE AND LOCAL LAW.—Nothing in this 

section or any program carried out using a grant provided under 

this section supersedes or otherwise affects any State or local law, 

to the extent that the State or local law contains a requirement 

that is more stringent than the relevant requirement of this section. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $20,000,000 for each of fiscal years 2007 through 2012. 

‘‘(e) REPORTS.—

‘‘(1) IN GENERAL.—The Administrator shall provide annual 

reports to Congress on cost savings achieved and actions taken 

and recommendations made under this section, and any recommendations for further action. 

‘‘(2) FINAL REPORT.—The Administrator shall issue a final report at the conclusion of the program, including findings, a 

summary of total cost savings achieved, and recommendations 

for further action. 

‘‘(f) TERMINATION.—The program under this section shall terminate on September 30, 2012. 

‘‘(g) DEFINITIONS.—In this section, the terms ‘cost effective technologies and practices’ and ‘operating cost savings’ shall have the 

meanings defined in section 401 of the Energy Independence and 

Security Act of 2007.’’. 

SEC. 494. GREEN BUILDING ADVISORY COMMITTEE. 

(a) ESTABLISHMENT.—Not later than 180 days after the date of 

enactment of this Act, the Federal Director, in coordination with 

the Commercial Director, shall establish an advisory committee, to 

be known as the ‘‘Green Building Advisory Committee’’. 

(b) MEMBERSHIP.—

(1) IN GENERAL.—The Committee shall be composed of representatives of, at a minimum—

(A) each agency referred to in section 421(e); and 


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(B) other relevant agencies and entities, as determined 

by the Federal Director, including at least 1 representative 

of each of—

(i) State and local governmental green building programs; 

(ii) independent green building associations or councils; 

(iii) building experts, including architects, material 

suppliers, and construction contractors; 

(iv) security advisors focusing on national security 

needs, natural disasters, and other dire emergency situations; 

(v) public transportation industry experts; and 

(vi) environmental health experts, including those 

with experience in children’s health. 

(2) NON-FEDERAL MEMBERS.—The total number of non-Federal members on the Committee at any time shall not exceed 

15. 

(c) MEETINGS.—The Federal Director shall establish a regular 

schedule of meetings for the Committee. 

(d) DUTIES.—The Committee shall provide advice and expertise 

for use by the Federal Director in carrying out the duties under 

this subtitle, including such recommendations relating to Federal 

activities carried out under sections 434 through 436 as are agreed 

to by a majority of the members of the Committee. 

(e) FACA EXEMPTION.—The Committee shall not be subject to 

section 14 of the Federal Advisory Committee Act (5 U.S.C. App.). 

SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE. 

(a) ESTABLISHMENT.—The Secretary, acting through the Assistant Secretary of Energy for Energy Efficiency and Renewable Energy, shall establish an Advisory Committee on Energy Efficiency 

Finance to provide advice and recommendations to the Department 

on energy efficiency finance and investment issues, options, ideas, 

and trends, and to assist the energy community in identifying practical ways of lowering costs and increasing investments in energy 

efficiency technologies. 

(b) MEMBERSHIP.—The advisory committee established under this 

section shall have a balanced membership that shall include members with expertise in—

(1) availability of seed capital; 

(2) availability of venture capital; 

(3) availability of other sources of private equity; 

(4) investment banking with respect to corporate finance; 

(5) investment banking with respect to mergers and acquisitions; 

(6) equity capital markets; 

(7) debt capital markets; 

(8) research analysis; 

(9) sales and trading; 

(10) commercial lending; and 

(11) residential lending. 

(c) TERMINATION.—The Advisory Committee on Energy Efficiency 

Finance shall terminate on the date that is 10 years after the date 

of enactment of this Act. 


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(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to the Secretary for 

carrying out this section. 

TITLE V—ENERGY SAVINGS IN GOVERNMENT AND 

PUBLIC INSTITUTIONS 

Subtitle A—United States Capitol Complex 

SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY 

STUDIES. 

(a) STUDIES.—The Architect of the Capitol may conduct feasibility studies regarding construction of photovoltaic roofs for the 

Rayburn House Office Building and the Hart Senate Office Building. 

(b) REPORT.—Not later than 6 months after the date of enactment of this Act, the Architect of the Capitol shall transmit to the 

Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Rules and Administration 

of the Senate a report on the results of the feasibility studies and 

recommendations regarding construction of photovoltaic roofs for 

the buildings referred to in subsection (a). 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $500,000. 

SEC. 502. CAPITOL COMPLEX E–85 REFUELING STATION. 

(a) CONSTRUCTION.—The Architect of the Capitol may construct 

a fuel tank and pumping system for E–85 fuel at or within close 

proximity to the Capitol Grounds Fuel Station. 

(b) USE.—The E–85 fuel tank and pumping system shall be available for use by all legislative branch vehicles capable of operating 

with E–85 fuel, subject to such other legislative branch agencies reimbursing the Architect of the Capitol for the costs of E–85 fuel 

used by such other legislative branch vehicles. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $640,000 for fiscal year 

2008. 

SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL 

COMPLEX MASTER PLAN. 

(a) IN GENERAL.—To the maximum extent practicable, the Architect of the Capitol shall include energy efficiency and conservation 

measures, greenhouse gas emission reduction measures, and other 

appropriate environmental measures in the Capitol Complex Master Plan. 

(b) REPORT.—Not later than 6 months after the date of enactment of this Act, the Architect of the Capitol shall submit to the 

Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Rules and Administration 

of the Senate a report on the energy efficiency and conservation 

measures, greenhouse gas emission reduction measures, and other 

appropriate environmental measures included in the Capitol Complex Master Plan pursuant to subsection (a). 

SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER PLANT. 

(a) STEAM BOILERS.—


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(1) IN GENERAL.—The Architect of the Capitol shall take 

such steps as may be necessary to operate the steam boilers at 

the Capitol Power Plant in the most energy efficient manner 

possible to minimize carbon emissions and operating costs, including adjusting steam pressures and adjusting the operation 

of the boilers to take into account variations in demand, including seasonality, for the use of the system. 

(2) EFFECTIVE DATE.—The Architect shall implement the 

steps required under paragraph (1) not later than 30 days after 

the date of the enactment of this Act. 

(b) CHILLER PLANT.— (1) IN GENERAL.—The Architect of the Capitol shall take 

such steps as may be necessary to operate the chiller plant at 

the Capitol Power Plant in the most energy efficient manner 

possible to minimize carbon emissions and operating costs, including adjusting water temperatures and adjusting the operation of the chillers to take into account variations in demand, 

including seasonality, for the use of the system. 

(2) EFFECTIVE DATE.—The Architect shall implement the 

steps required under paragraph (1) not later than 30 days after 

the date of the enactment of this Act. 

(c) METERS.—Not later than 90 days after the date of the enactment of this Act, the Architect of the Capitol shall evaluate the accuracy of the meters in use at the Capitol Power Plant and correct 

them as necessary. 

(d) REPORT ON IMPLEMENTATION.—Not later than 180 days after 

the date of the enactment of this Act, the Architect of the Capitol 

shall complete the implementation of the requirements of this section and submit a report describing the actions taken and the energy efficiencies achieved to the Committee on Transportation and 

Infrastructure of the House of Representatives, the Committee on 

Commerce, Science, and Transportation of the Senate, the Committee on House Administration of the House of Representatives, 

and the Committee on Rules and Administration of the Senate. 

SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS FEASIBILITY STUDY AND DEMONSTRATION PROJECTS. 

The first section of the Act of March 4, 1911 (2 U.S.C. 2162; 36 

Stat. 1414, chapter 285) is amended in the seventh undesignated 

paragraph (relating to the Capitol power plant) under the heading 

‘‘Public Buildings’’, under the heading ‘‘Under the Department of 

Interior’’—

(1) by striking ‘‘ninety thousand dollars:’’ and inserting 

$90,000.’’; and 

(2) by striking ‘‘Provided, That hereafter the’’ and all that 

follows through the end of the proviso and inserting the following: 

‘‘(a) DESIGNATION.—The heating, lighting, and power plant constructed under the terms of the Act approved April 28, 1904 (33 

Stat. 479, chapter 1762) shall be known as the ‘Capitol Power 

Plant’. 

‘‘(b) DEFINITION.—In this section, the term ‘carbon dioxide energy 

efficiency’ means the quantity of electricity used to power equipment for carbon dioxide capture and storage or use. 

‘‘(c) FEASIBILITY STUDY.—The Architect of the Capitol shall conduct a feasibility study evaluating the available methods to capVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00175 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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ture, store, and use carbon dioxide emitted from the Capitol Power 

Plant as a result of burning fossil fuels. In carrying out the feasibility study, the Architect of the Capitol is encouraged to consult 

with individuals with expertise in carbon capture and storage or 

use, including experts with the Environmental Protection Agency, 

Department of Energy, academic institutions, non-profit organizations, and industry, as appropriate. The study shall consider—

‘‘(1) the availability of technologies to capture and store or 

use Capitol Power Plant carbon dioxide emissions; 

‘‘(2) strategies to conserve energy and reduce carbon dioxide 

emissions at the Capitol Power Plant; and 

‘‘(3) other factors as determined by the Architect of the Capitol. 

‘‘(d) DEMONSTRATION PROJECTS.—

‘‘(1) IN GENERAL.—If the feasibility study determines that a 

demonstration project to capture and store or use Capitol 

Power Plant carbon dioxide emissions is technologically feasible and economically justified (including direct and indirect 

economic and environmental benefits), the Architect of the 

Capitol may conduct one or more demonstration projects to 

capture and store or use carbon dioxide emitted from the Capitol Power Plant as a result of burning fossil fuels. 

‘‘(2) FACTORS FOR CONSIDERATION.—In carrying out such 

demonstration projects, the Architect of the Capitol shall consider—

‘‘(A) the amount of Capitol Power Plant carbon dioxide 

emissions to be captured and stored or used; 

‘‘(B) whether the proposed project is able to reduce air 

pollutants other than carbon dioxide; 

‘‘(C) the carbon dioxide energy efficiency of the proposed 

project; 

‘‘(D) whether the proposed project is able to use carbon 

dioxide emissions; 

‘‘(E) whether the proposed project could be expanded to 

significantly increase the amount of Capitol Power Plant 

carbon dioxide emissions to be captured and stored or 

used; 

‘‘(F) the potential environmental, energy, and educational benefits of demonstrating the capture and storage 

or use of carbon dioxide at the U.S. Capitol; and 

‘‘(G) other factors as determined by the Architect of the 

Capitol. 

‘‘(3) TERMS AND CONDITIONS.—A demonstration project funded under this section shall be subject to such terms and conditions as the Architect of the Capitol may prescribe. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out the feasibility study and demonstration project $3,000,000. Such sums shall remain available until expended.’’. 

Subtitle B—Energy Savings Performance Contracting 

SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS. 

(a) IN GENERAL.—Section 801(a)(2)(D) of the National Energy 

Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended—


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(1) in clause (ii), by inserting ‘‘and’’ after the semicolon at the 

end; 

(2) by striking clause (iii); and 

(3) by redesignating clause (iv) as clause (iii). 

(b) REPORTS.—Section 548(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by inserting ‘‘and 

any termination penalty exposure’’ after ‘‘the energy and cost savings that have resulted from such contracts’’. 

(c) CONFORMING AMENDMENT.—Section 2913 of title 10, United 

States Code, is amended by striking subsection (e). 

SEC. 512. FINANCING FLEXIBILITY. 

Section 801(a)(2) of the National Energy Conservation Policy Act 

(42 U.S.C. 8287(a)(2)) is amended by adding at the end the following: 

‘‘(E) FUNDING OPTIONS.—In carrying out a contract 

under this title, a Federal agency may use any combination of—

‘‘(i) appropriated funds; and 

‘‘(ii) private financing under an energy savings performance contract.’’. 

SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE 

CONTRACTS AND VERIFYING SAVINGS. 

Section 801(a)(2) of the National Energy Conservation Policy Act 

(42 U.S.C. 8287(a)(2)) (as amended by section 512) is amended—

(1) in subparagraph (D), by inserting ‘‘beginning on the date 

of the delivery order’’ after ‘‘25 years’’; and 

(2) by adding at the end the following: 

‘‘(F) PROMOTION OF CONTRACTS.—In carrying out this 

section, a Federal agency shall not—

‘‘(i) establish a Federal agency policy that limits the 

maximum contract term under subparagraph (D) to a 

period shorter than 25 years; or 

‘‘(ii) limit the total amount of obligations under energy savings performance contracts or other private financing of energy savings measures. 

‘‘(G) MEASUREMENT AND VERIFICATION REQUIREMENTS

FOR PRIVATE FINANCING.—

‘‘(i) IN GENERAL.—In the case of energy savings performance contracts, the evaluations and savings measurement and verification required under paragraphs 

(2) and (4) of section 543(f) shall be used by a Federal 

agency to meet the requirements for the need for energy audits, calculation of energy savings, and any 

other evaluation of costs and savings needed to implement the guarantee of savings under this section. 

‘‘(ii) MODIFICATION OF EXISTING CONTRACTS.—Not 

later than 18 months after the date of enactment of 

this subparagraph, each Federal agency shall, to the 

maximum extent practicable, modify any indefinite delivery and indefinite quantity energy savings performance contracts, and other indefinite delivery and indefinite quantity contracts using private financing, to 

conform to the amendments made by subtitle B of title 


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V of the Energy Independence and Security Act of 

2007.’’. 

SEC. 514. PERMANENT REAUTHORIZATION. 

Section 801 of the National Energy Conservation Policy Act (42 

U.S.C. 8287) is amended by striking subsection (c). 

SEC. 515. DEFINITION OF ENERGY SAVINGS. 

Section 804(2) of the National Energy Conservation Policy Act 

(42 U.S.C. 8287c(2)) is amended—

(1) by redesignating subparagraphs (A), (B), and (C) as 

clauses (i), (ii), and (iii), respectively, and indenting appropriately; 

(2) by striking ‘‘means a reduction’’ and inserting ‘‘means—

‘‘(A) a reduction’’; 

(3) by striking the period at the end and inserting a semicolon; and 

(4) by adding at the end the following: 

‘‘(B) the increased efficient use of an existing energy 

source by cogeneration or heat recovery; 

‘‘(C) if otherwise authorized by Federal or State law (including regulations), the sale or transfer of electrical or 

thermal energy generated on-site from renewable energy 

sources or cogeneration, but in excess of Federal needs, to 

utilities or non-Federal energy users; and 

‘‘(D) the increased efficient use of existing water sources 

in interior or exterior applications.’’. 

SEC. 516. RETENTION OF SAVINGS. 

Section 546(c) of the National Energy Conservation Policy Act (42 

U.S.C. 8256(c)) is amended by striking paragraph (5). 

SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY EFFICIENCY CONTRACTS. 

(a) PROGRAM.—The Secretary shall create and administer in the 

Federal Energy Management Program a training program to educate Federal contract negotiation and contract management personnel so that the contract officers are prepared to—

(1) negotiate energy savings performance contracts; 

(2) conclude effective and timely contracts for energy efficiency services with all companies offering energy efficiency 

services; and 

(3) review Federal contracts for all products and services for 

the potential energy efficiency opportunities and implications 

of the contracts. 

(b) SCHEDULE.—Not later than 1 year after the date of enactment 

of this Act, the Secretary shall plan, staff, announce, and begin 

training under the Federal Energy Management Program. 

(c) PERSONNEL TO BE TRAINED.—Personnel appropriate to receive 

training under the Federal Energy Management Program shall be 

selected by and sent for the training from—

(1) the Department of Defense; 

(2) the Department of Veterans Affairs; 

(3) the Department; 

(4) the General Services Administration; 

(5) the Department of Housing and Urban Development; 

(6) the United States Postal Service; and 


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(7) all other Federal agencies and departments that enter 

contracts for buildings, building services, electricity and electricity services, natural gas and natural gas services, heating 

and air conditioning services, building fuel purchases, and 

other types of procurement or service contracts determined by 

the Secretary, in carrying out the Federal Energy Management 

Program, to offer the potential for energy savings and greenhouse gas emission reductions if negotiated with taking into 

account those goals. 

(d) TRAINERS.—Training under the Federal Energy Management 

Program may be conducted by—

(1) attorneys or contract officers with experience in negotiating and managing contracts described in subsection (c)(7) 

from any agency, except that the Secretary shall reimburse the 

related salaries and expenses of the attorneys or contract officers from amounts made available for carrying out this section 

to the extent the attorneys or contract officers are not employees of the Department; and 

(2) private experts hired by the Secretary for the purposes of 

this section, except that the Secretary may not hire experts 

who are simultaneously employed by any company under contract to provide energy efficiency services to the Federal Government. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary to carry out this section $750,000 

for each of fiscal years 2008 through 2012. 

SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS. 

(a) DEFINITIONS.—In this section: 

(1) NONBUILDING APPLICATION.—The term ‘‘nonbuilding application’’ means—

(A) any class of vehicles, devices, or equipment that is 

transportable under the power of the applicable vehicle, 

device, or equipment by land, sea, or air and that consumes energy from any fuel source for the purpose of—

(i) that transportation; or 

(ii) maintaining a controlled environment within the 

vehicle, device, or equipment; and 

(B) any federally-owned equipment used to generate 

electricity or transport water. 

(2) SECONDARY SAVINGS.—

(A) IN GENERAL.—The term ‘‘secondary savings’’ means 

additional energy or cost savings that are a direct consequence of the energy savings that result from the energy 

efficiency improvements that were financed and implemented pursuant to an energy savings performance contract. 

(B) INCLUSIONS.—The term ‘‘secondary savings’’ includes—

(i) energy and cost savings that result from a reduction in the need for fuel delivery and logistical support; 

(ii) personnel cost savings and environmental benefits; and 


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(iii) in the case of electric generation equipment, the 

benefits of increased efficiency in the production of 

electricity, including revenues received by the Federal 

Government from the sale of electricity so produced. 

(b) STUDY.—

(1) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary and the Secretary of Defense 

shall jointly conduct, and submit to Congress and the President a report of, a study of the potential for the use of energy 

savings performance contracts to reduce energy consumption 

and provide energy and cost savings in nonbuilding applications. 

(2) REQUIREMENTS.—The study under this subsection shall 

include—

(A) an estimate of the potential energy and cost savings 

to the Federal Government, including secondary savings 

and benefits, from increased efficiency in nonbuilding applications; 

(B) an assessment of the feasibility of extending the use 

of energy savings performance contracts to nonbuilding applications, including an identification of any regulatory or 

statutory barriers to that use; and 

(C) such recommendations as the Secretary and Secretary of Defense determine to be appropriate. 

Subtitle C—Energy Efficiency in Federal Agencies 

SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY HEADQUARTERS BUILDING. 

(a) IN GENERAL.—The Administrator of General Services shall install a photovoltaic system, as set forth in the Sun Wall Design 

Project, for the headquarters building of the Department located at 

1000 Independence Avenue, SW., Washington, DC, commonly 

known as the Forrestal Building. 

(b) FUNDING.—There shall be available from the Federal Buildings Fund established by section 592 of title 40, United States 

Code, $30,000,000 to carry out this section. Such sums shall be derived from the unobligated balance of amounts made available from 

the Fund for fiscal year 2007, and prior fiscal years, for repairs and 

alternations and other activities (excluding amounts made available for the energy program). Such sums shall remain available 

until expended. 

SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD. 

(a) PROHIBITION.—Except as provided by subsection (b), on and 

after January 1, 2009, a general service incandescent lamp shall 

not be purchased or installed in a Coast Guard facility by or on behalf of the Coast Guard. 

(b) EXCEPTION.—A general service incandescent lamp may be 

purchased, installed, and used in a Coast Guard facility whenever 

the application of a general service incandescent lamp is—

(1) necessary due to purpose or design, including medical, security, and industrial applications; 

(2) reasonable due to the architectural or historical value of 

a light fixture installed before January 1, 2009; or 


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(3) the Commandant of the Coast Guard determines that 

operational requirements necessitate the use of a general service incandescent lamp. 

(c) LIMITATION.—In this section, the term ‘‘facility’’ does not include a vessel or aircraft of the Coast Guard. 

SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS. 

Section 305(a)(3)(A) of the Energy Conservation and Production 

Act (42 U.S.C. 6834(a)(3)(A)) is amended—

(1) in clause (i)(II), by striking ‘‘and’’ at the end; 

(2) in clause (ii), by striking the period at the end and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(iii) if lifecycle cost-effective, as compared to other 

reasonably available technologies, not less than 30 

percent of the hot water demand for each new Federal 

building or Federal building undergoing a major renovation be met through the installation and use of 

solar hot water heaters.’’. 

SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY 

POWER. 

Section 553 of the National Energy Conservation Policy Act (42 

U.S.C. 8259b) is amended—

(1) by redesignating subsection (e) as subsection (f); and 

(2) by inserting after subsection (d) the following: 

‘‘(e) FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.—

‘‘(1) DEFINITION OF ELIGIBLE PRODUCT.—In this subsection, 

the term ‘eligible product’ means a commercially available, offthe-shelf product that—

‘‘(A)(i) uses external standby power devices; or 

‘‘(ii) contains an internal standby power function; and 

‘‘(B) is included on the list compiled under paragraph (4). 

‘‘(2) FEDERAL PURCHASING REQUIREMENT.—Subject to paragraph (3), if an agency purchases an eligible product, the agency shall purchase—

‘‘(A) an eligible product that uses not more than 1 watt 

in the standby power consuming mode of the eligible product; or 

‘‘(B) if an eligible product described in subparagraph (A) 

is not available, the eligible product with the lowest available standby power wattage in the standby power consuming mode of the eligible product. 

‘‘(3) LIMITATION.—The requirements of paragraph (2) shall 

apply to a purchase by an agency only if—

‘‘(A) the lower-wattage eligible product is—

‘‘(i) lifecycle cost-effective; and 

‘‘(ii) practicable; and 

‘‘(B) the utility and performance of the eligible product 

is not compromised by the lower wattage requirement. 

‘‘(4) ELIGIBLE PRODUCTS.—The Secretary, in consultation 

with the Secretary of Defense, the Administrator of the Environmental Protection Agency, and the Administrator of General Services, shall compile a publicly accessible list of cost-effective eligible products that shall be subject to the purchasing 

requirements of paragraph (2).’’. 


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SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS. 

(a) AMENDMENTS.—Section 553 of the National Energy Conservation Policy Act (42 U.S.C. 8259b) is amended—

(1) in subsection (b)(1), by inserting ‘‘in a product category 

covered by the Energy Star program or the Federal Energy 

Management Program for designated products’’ after ‘‘energy 

consuming product’’; and 

(2) in the second sentence of subsection (c)—

(A) by inserting ‘‘list in their catalogues, represent as 

available, and’’ after ‘‘Logistics Agency shall’’; and 

(B) by striking ‘‘where the agency’’ and inserting ‘‘in 

which the head of the agency’’. 

(b) CATALOGUE LISTING DEADLINE.—Not later than 9 months 

after the date of enactment of this Act, the General Services Administration and the Defense Logistics Agency shall ensure that 

the requirement established by the amendment made by subsection 

(a)(2)(A) has been fully complied with. 

SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS. 

No Federal agency shall enter into a contract for procurement of 

an alternative or synthetic fuel, including a fuel produced from 

nonconventional petroleum sources, for any mobility-related use, 

other than for research or testing, unless the contract specifies that 

the lifecycle greenhouse gas emissions associated with the production and combustion of the fuel supplied under the contract must, 

on an ongoing basis, be less than or equal to such emissions from 

the equivalent conventional fuel produced from conventional petroleum sources. 

SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS. 

(a) IN GENERAL.—Each Federal agency subject to any of the requirements of this title or the amendments made by this title shall 

compile and submit to the Director of the Office of Management 

and Budget an annual Government efficiency status report on—

(1) compliance by the agency with each of the requirements 

of this title and the amendments made by this title; 

(2) the status of the implementation by the agency of initiatives to improve energy efficiency, reduce energy costs, and reduce emissions of greenhouse gases; and 

(3) savings to the taxpayers of the United States resulting 

from mandated improvements under this title and the amendments made by this title 

(b) SUBMISSION.—The report shall be submitted—

(1) to the Director at such time as the Director requires; 

(2) in electronic, not paper, format; and 

(3) consistent with related reporting requirements. 

SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS. 

(a) REPORTS.—Not later than April 1 of each year, the Director 

of the Office of Management and Budget shall submit an annual 

Government efficiency report to the Committee on Oversight and 

Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate, which shall contain—


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(1) a summary of the information reported by agencies under 

section 527; 

(2) an evaluation of the overall progress of the Federal Government toward achieving the goals of this title and the 

amendments made by this title; and 

(3) recommendations for additional actions necessary to meet 

the goals of this title and the amendments made by this title. 

(b) SCORECARDS.—The Director of the Office of Management and 

Budget shall include in any annual energy scorecard the Director 

is otherwise required to submit a description of the compliance of 

each agency with the requirements of this title and the amendments made by this title. 

SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE. 

(a) IN GENERAL.—Title V of the National Energy Conservation 

Policy Act (42 U.S.C. 8241 et seq.) is amended by adding at the end 

the following: 

‘‘PART 5—PEAK DEMAND REDUCTION 

‘‘SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE. 

‘‘(a) NATIONAL ASSESSMENT AND REPORT.—The Federal Energy 

Regulatory Commission (‘Commission’) shall conduct a National Assessment of Demand Response. The Commission shall, within 18 

months of the date of enactment of this part, submit a report to 

Congress that includes each of the following: 

‘‘(1) Estimation of nationwide demand response potential in 

5 and 10 year horizons, including data on a State-by-State 

basis, and a methodology for updates of such estimates on an 

annual basis. 

‘‘(2) Estimation of how much of this potential can be 

achieved within 5 and 10 years after the enactment of this part 

accompanied by specific policy recommendations that if implemented can achieve the estimated potential. Such recommendations shall include options for funding and/or incentives for the development of demand response resources. 

‘‘(3) The Commission shall further note any barriers to demand response programs offering flexible, non-discriminatory, 

and fairly compensatory terms for the services and benefits 

made available, and shall provide recommendations for overcoming such barriers. 

‘‘(4) The Commission shall seek to take advantage of preexisting research and ongoing work, and shall insure that 

there is no duplication of effort. 

‘‘(b) NATIONAL ACTION PLAN ON DEMAND RESPONSE.—The Commission shall further develop a National Action Plan on Demand 

Response, soliciting and accepting input and participation from a 

broad range of industry stakeholders, State regulatory utility commissioners, and non-governmental groups. The Commission shall 

seek consensus where possible, and decide on optimum solutions to 

issues that defy consensus. Such Plan shall be completed within 

one year after the completion of the National Assessment of Demand Response, and shall meet each of the following objectives: 


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‘‘(1) Identification of requirements for technical assistance to 

States to allow them to maximize the amount of demand response resources that can be developed and deployed. ‘‘(2) Design and identification of requirements for implementation of a national communications program that includes 

broad-based customer education and support. ‘‘(3) Development or identification of analytical tools, information, model regulatory provisions, model contracts, and 

other support materials for use by customers, states, utilities 

and demand response providers. ‘‘(c) Upon completion, the National Action Plan on Demand Response shall be published, together with any favorable and dissenting comments submitted by participants in its preparation. Six 

months after publication, the Commission, together with the Secretary of Energy, shall submit to Congress a proposal to implement 

the Action Plan, including specific proposed assignments of responsibility, proposed budget amounts, and any agreements secured for 

participation from State and other participants. ‘‘(d) AUTHORIZATION.—There are authorized to be appropriated to 

the Commission to carry out this section not more than 

$10,000,000 for each of the fiscal years 2008, 2009, and 2010.’’. (b) TABLE OF CONTENTS.—The table of contents for the National 

Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended 

by adding after the items relating to part 4 of title V the following: 

‘‘PART 5—PEAK DEMAND REDUCTION

‘‘Sec. 571. National Action Plan for Demand Response.’’. 

Subtitle D—Energy Efficiency of Public Institutions 

SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS. 

Section 365(f) of the Energy Policy and Conservation Act (42 

U.S.C. 6325(f)) is amended by striking ‘‘$100,000,000 for each of 

the fiscal years 2006 and 2007 and $125,000,000 for fiscal year 

2008’’ and inserting ‘‘$125,000,000 for each of fiscal years 2007 

through 2012’’. 

SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS. 

(a) ELECTRIC UTILITIES.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following: ‘‘(16) INTEGRATED RESOURCE PLANNING.—Each electric utility 

shall—

‘‘(A) integrate energy efficiency resources into utility, 

State, and regional plans; and ‘‘(B) adopt policies establishing cost-effective energy efficiency as a priority resource. ‘‘(17) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY EFFICIENCY INVESTMENTS.—

‘‘(A) IN GENERAL.—The rates allowed to be charged by 

any electric utility shall—

‘‘(i) align utility incentives with the delivery of costeffective 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—


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‘‘(i) removing the throughput incentive and other 

regulatory and management disincentives to energy 

efficiency; 

‘‘(ii) providing utility incentives for the successful 

management of energy efficiency programs; 

‘‘(iii) including the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with 

other objectives; 

‘‘(iv) adopting rate designs that encourage energy efficiency for each customer class; 

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

‘‘(vi) offering home energy audits, offering demand 

response programs, publicizing the financial and environmental benefits associated with making home energy efficiency improvements, and educating homeowners about all existing Federal and State incentives, 

including the availability of low-cost loans, that make 

energy efficiency improvements more affordable.’’. 

(b) NATURAL GAS UTILITIES.—Section 303(b) of the Public Utility 

Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by 

adding at the end the following: 

‘‘(5) ENERGY EFFICIENCY.—Each natural gas utility shall—

‘‘(A) integrate energy efficiency resources into the plans 

and planning processes of the natural gas utility; and 

‘‘(B) adopt policies that establish energy efficiency as a 

priority resource in the plans and planning processes of 

the natural gas utility. 

‘‘(6) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY EFFICIENCY INVESTMENTS.—

‘‘(A) IN GENERAL.—The rates allowed to be charged by a 

natural gas utility shall align utility incentives with the 

deployment of cost-effective energy efficiency. 

‘‘(B) POLICY OPTIONS.—In complying with subparagraph 

(A), each State regulatory authority and each nonregulated 

utility shall consider—

‘‘(i) separating fixed-cost revenue recovery from the 

volume of transportation or sales service provided to 

the customer; 

‘‘(ii) providing to utilities incentives for the successful management of energy efficiency programs, such as 

allowing utilities to retain a portion of the cost-reducing benefits accruing from the programs; 

‘‘(iii) promoting the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with 

other objectives; and 

‘‘(iv) adopting rate designs that encourage energy efficiency for each customer class. 

For purposes of applying the provisions of this subtitle to 

this paragraph, any reference in this subtitle to the date 

of enactment of this Act shall be treated as a reference to 

the date of enactment of this paragraph.’’. 


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(c) CONFORMING AMENDMENT.—Section 303(a) of the Public Utility Regulatory Policies Act of 1978 U.S.C. 3203(a)) is amended by 

striking ‘‘and (4)’’ inserting ‘‘(4), (5), and (6)’’. 

Subtitle E—Energy Efficiency and Conservation Block 

Grants 

SEC. 541. DEFINITIONS. 

In this subtitle: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—

(A) a State; 

(B) an eligible unit of local government; and 

(C) an Indian tribe. 

(2) ELIGIBLE UNIT OF LOCAL GOVERNMENT.—The term ‘‘eligible unit of local government’’ means—

(A) an eligible unit of local government–alternative 1; 

and 

(B) an eligible unit of local government–alternative 2. 

(3)(A) ELIGIBLE UNIT OF LOCAL GOVERNMENT–ALTERNATIVE

1.—The term ‘‘eligible unit of local government–alternative 1’’

means—

(i) a city with a population—

(I) of at least 35,000; or 

(II) that causes the city to be 1 of the 10 highestpopulated cities of the State in which the city is located; and 

(ii) a county with a population—

(I) of at least 200,000; or 

(II) that causes the county to be 1 of the 10 highestpopulated counties of the State in which the county is 

located. 

(B) ELIGIBLE UNIT OF LOCAL GOVERNMENT–ALTERNATIVE 2.—

The term ‘‘eligible unit of local government–alternative 2’’

means—

(i) a city with a population of at least 50,000; or 

(ii) a county with a population of at least 200,000. 

(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 

given the term in section 4 of the Indian Self- Determination 

and Education Assistance Act (25 U.S.C. 450b). 

(5) PROGRAM.—The term ‘‘program’’ means the Energy Efficiency and Conservation Block Grant Program established 

under section 542(a). 

(6) STATE.—The term ‘‘State’’ means—

(A) a State; 

(B) the District of Columbia; 

(C) the Commonwealth of Puerto Rico; and 

(D) any other territory or possession of the United 

States. 

SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT 

PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish a program, to 

be known as the ‘‘Energy Efficiency and Conservation Block Grant 

Program’’, under which the Secretary shall provide grants to eligible entities in accordance with this subtitle. 


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(b) PURPOSE.—The purpose of the program shall be to assist eligible entities in implementing strategies— (1) to reduce fossil fuel emissions created as a result of activities within the jurisdictions of eligible entities in manner 

that—(A) is environmentally sustainable; and 

(B) to the maximum extent practicable, maximizes benefits for local and regional communities; 

(2) to reduce the total energy use of the eligible entities; and 

(3) to improve energy efficiency in— (A) the transportation sector; 

(B) the building sector; and 

(C) other appropriate sectors. 

SEC. 543. ALLOCATION OF FUNDS. 

(a) IN GENERAL.—Of amounts made available to provide grants 

under this subtitle for each fiscal year, the Secretary shall allocate—(1) 68 percent to eligible units of local government in accordance with subsection (b); 

(2) 28 percent to States in accordance with subsection (c); 

(3) 2 percent to Indian tribes in accordance with subsection 

(d); and 

(4) 2 percent for competitive grants under section 546. 

(b) ELIGIBLE UNITS OF LOCAL GOVERNMENT.—Of amounts available for distribution to eligible units of local government under subsection (a)(1), the Secretary shall provide grants to eligible units of 

local government under this section based on a formula established 

by the Secretary according to— (1) the populations served by the eligible units of local government, according to the latest available decennial census; 

and 

(2) the daytime populations of the eligible units of local government and other similar factors (such as square footage of 

commercial, office, and industrial space), as determined by the 

Secretary. 

(c) STATES.—Of amounts available for distribution to States 

under subsection (a)(2), the Secretary shall provide— (1) not less than 1.25 percent to each State; and 

(2) the remainder among the States, based on a formula to 

be established by the Secretary that takes into account— (A) the population of each State; and 

(B) any other criteria that the Secretary determines to 

be appropriate. 

(d) INDIAN TRIBES.—Of amounts available for distribution to Indian tribes under subsection (a)(3), the Secretary shall establish a 

formula for allocation of the amounts to Indian tribes, taking into 

account any factors that the Secretary determines to be appropriate. 

(e) PUBLICATION OF ALLOCATION FORMULAS.—Not later than 90 

days before the beginning of each fiscal year for which grants are 

provided under this subtitle, the Secretary shall publish in the Federal Register the formulas for allocation established under this section. 

(f) STATE AND LOCAL ADVISORY COMMITTEE.—The Secretary shall 

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retary regarding administration, implementation, and evaluation of 

the program. 

SEC. 544. USE OF FUNDS. 

An eligible entity may use a grant received under this subtitle 

to carry out activities to achieve the purposes of the program, including—

(1) development and implementation of an energy efficiency 

and conservation strategy under section 545(b); 

(2) retaining technical consultant services to assist the eligible entity in the development of such a strategy, including— (A) formulation of energy efficiency, energy conservation, 

and energy usage goals; 

(B) identification of strategies to achieve those goals— (i) through efforts to increase energy efficiency and 

reduce energy consumption; and 

(ii) by encouraging behavioral changes among the 

population served by the eligible entity; 

(C) development of methods to measure progress in 

achieving the goals; 

(D) development and publication of annual reports to the 

population served by the eligible entity describing— (i) the strategies and goals; and 

(ii) the progress made in achieving the strategies 

and goals during the preceding calendar year; and 

(E) other services to assist in the implementation of the 

energy efficiency and conservation strategy; 

(3) conducting residential and commercial building energy 

audits; 

(4) establishment of financial incentive programs for energy 

efficiency improvements; 

(5) the provision of grants to nonprofit organizations and 

governmental agencies for the purpose of performing energy efficiency retrofits; 

(6) development and implementation of energy efficiency and 

conservation programs for buildings and facilities within the 

jurisdiction of the eligible entity, including— (A) design and operation of the programs; 

(B) identifying the most effective methods for achieving 

maximum participation and efficiency rates; 

(C) public education; 

(D) measurement and verification protocols; and 

(E) identification of energy efficient technologies; 

(7) development and implementation of programs to conserve 

energy used in transportation, including—

(A) use of flex time by employers; 

(B) satellite work centers; 

(C) development and promotion of zoning guidelines or 

requirements that promote energy efficient development; 

(D) development of infrastructure, such as bike lanes 

and pathways and pedestrian walkways; 

(E) synchronization of traffic signals; and 

(F) other measures that increase energy efficiency and 

decrease energy consumption; 

(8) development and implementation of building codes and 

inspection services to promote building energy efficiency; 


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(9) application and implementation of energy distribution 

technologies that significantly increase energy efficiency, including—

(A) distributed resources; and 

(B) district heating and cooling systems; 

(10) activities to increase participation and efficiency rates 

for material conservation programs, including source reduction, 

recycling, and recycled content procurement programs that 

lead to increases in energy efficiency; 

(11) the purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use 

methane and other greenhouse gases generated by landfills or 

similar sources; 

(12) replacement of traffic signals and street lighting with 

energy efficient lighting technologies, including— (A) light emitting diodes; and 

(B) any other technology of equal or greater energy efficiency; 

(13) development, implementation, and installation on or in 

any government building of the eligible entity of onsite renewable energy technology that generates electricity from renewable resources, including— (A) solar energy; 

(B) wind energy; 

(C) fuel cells; and 

(D) biomass; and 

(14) any other appropriate activity, as determined by the 

Secretary, in consultation with— (A) the Administrator of the Environmental Protection 

Agency; 

(B) the Secretary of Transportation; and 

(C) the Secretary of Housing and Urban Development. 

SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES. 

(a) CONSTRUCTION REQUIREMENT.— (1) IN GENERAL.—To be eligible to receive a grant under the 

program, each eligible applicant shall submit to the Secretary 

a written assurance that all laborers and mechanics employed 

by any contractor or subcontractor of the eligible entity during 

any construction, alteration, or repair activity funded, in whole 

or in part, by the grant shall be paid wages at rates not less 

than the prevailing wages for similar construction activities in 

the locality, as determined by the Secretary of Labor, in accordance with sections 3141 through 3144, 3146, and 3147 of 

title 40, United States Code. 

(2) SECRETARY OF LABOR.—With respect to the labor standards referred to in paragraph (1), the Secretary of Labor shall 

have the authority and functions described in—

(A) Reorganization Plan Numbered 14 of 1950 (5 U.S.C. 

903 note); and 

(B) section 3145 of title 40, United States Code. 

(b) ELIGIBLE UNITS OF LOCAL GOVERNMENT AND INDIAN

TRIBES.—

(1) PROPOSED STRATEGY.—

(A) IN GENERAL.—Not later than 1 year after the date on 

which an eligible unit of local government or Indian tribe 


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receives a grant under this subtitle, the eligible unit of 

local government or Indian tribe shall submit to the Secretary a proposed energy efficiency and conservation strategy in accordance with this paragraph. 

(B) INCLUSIONS.—The proposed strategy under subparagraph (A) shall include— (i) a description of the goals of the eligible unit of 

local government or Indian tribe, in accordance with 

the purposes of this subtitle, for increased energy efficiency and conservation in the jurisdiction of the eligible unit of local government or Indian tribe; and 

(ii) a plan for the use of the grant to assist the eligible unit of local government or Indian tribe in achieving those goals, in accordance with section 544. 

(C) REQUIREMENTS FOR ELIGIBLE UNITS OF LOCAL GOVERNMENT.—In developing the strategy under subparagraph 

(A), an eligible unit of local government shall—

(i) take into account any plans for the use of funds 

by adjacent eligible units of local governments that receive grants under the program; and 

(ii) coordinate and share information with the State 

in which the eligible unit of local government is located regarding activities carried out using the grant 

to maximize the energy efficiency and conservation 

benefits under this subtitle. 

(2) APPROVAL BY SECRETARY.— (A) IN GENERAL.—The Secretary shall approve or disapprove a proposed strategy under paragraph (1) by not 

later than 120 days after the date of submission of the proposed strategy. 

(B) DISAPPROVAL.—If the Secretary disapproves a proposed strategy under subparagraph (A)— (i) the Secretary shall provide to the eligible unit of 

local government or Indian tribe the reasons for the 

disapproval; and 

(ii) the eligible unit of local government or Indian 

tribe may revise and resubmit the proposed strategy 

as many times as necessary until the Secretary approves a proposed strategy. 

(C) REQUIREMENT.—The Secretary shall not provide to 

an eligible unit of local government or Indian tribe any 

grant under the program until a proposed strategy of the 

eligible unit of local government or Indian tribe is approved by the Secretary under this paragraph. 

(3) LIMITATIONS ON USE OF FUNDS.—Of amounts provided to 

an eligible unit of local government or Indian tribe under the 

program, an eligible unit of local government or Indian tribe 

may use—

(A) for administrative expenses, excluding the cost of 

meeting the reporting requirements of this subtitle, an 

amount equal to the greater of— (i) 10 percent; and 

(ii) $75,000; 

(B) for the establishment of revolving loan funds, an 

amount equal to the greater of—


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(i) 20 percent; and 

(ii) $250,000; and 

(C) for the provision of subgrants to nongovernmental organizations for the purpose of assisting in the implementation of the energy efficiency and conservation strategy of 

the eligible unit of local government or Indian tribe, an 

amount equal to the greater of— (i) 20 percent; and 

(ii) $250,000. 

(4) ANNUAL REPORT.—Not later than 2 years after the date 

on which funds are initially provided to an eligible unit of local 

government or Indian tribe under the program, and annually 

thereafter, the eligible unit of local government or Indian tribe 

shall submit to the Secretary a report describing— (A) the status of development and implementation of the 

energy efficiency and conservation strategy of the eligible 

unit of local government or Indian tribe; and 

(B) as practicable, an assessment of energy efficiency 

gains within the jurisdiction of the eligible unit of local 

government or Indian tribe. 

(c) STATES.— (1) DISTRIBUTION OF FUNDS.— (A) IN GENERAL.—A State that receives a grant under 

the program shall use not less than 60 percent of the 

amount received to provide subgrants to units of local government in the State that are not eligible units of local 

government. 

(B) DEADLINE.—The State shall provide the subgrants 

required under subparagraph (A) by not later than 180 

days after the date on which the Secretary approves a proposed energy efficiency and conservation strategy of the 

State under paragraph (3). 

(2) REVISION OF CONSERVATION PLAN; PROPOSED STRATEGY.— Not later than 120 days after the date of enactment of this Act, 

each State shall— (A) modify the State energy conservation plan of the 

State under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) to establish additional goals 

for increased energy efficiency and conservation in the 

State; and 

(B) submit to the Secretary a proposed energy efficiency 

and conservation strategy that— (i) establishes a process for providing subgrants as 

required under paragraph (1); and 

(ii) includes a plan of the State for the use of funds 

received under a the program to assist the State in 

achieving the goals established under subparagraph 

(A), in accordance with sections 542(b) and 544. 

(3) APPROVAL BY SECRETARY.— (A) IN GENERAL.—The Secretary shall approve or disapprove a proposed strategy under paragraph (2)(B) by not 

later than 120 days after the date of submission of the proposed strategy. 

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(i) the Secretary shall provide to the State the reasons for the disapproval; and 

(ii) the State may revise and resubmit the proposed 

strategy as many times as necessary until the Secretary approves a proposed strategy. 

(C) REQUIREMENT.—The Secretary shall not provide to a 

State any grant under the program until a proposed strategy of the State is approved the Secretary under this paragraph. 

(4) LIMITATIONS ON USE OF FUNDS.—A State may use not 

more than 10 percent of amounts provided under the program 

for administrative expenses. 

(5) ANNUAL REPORTS.—Each State that receives a grant 

under the program shall submit to the Secretary an annual report that describes—

(A) the status of development and implementation of the 

energy efficiency and conservation strategy of the State 

during the preceding calendar year; 

(B) the status of the subgrant program of the State 

under paragraph (1); 

(C) the energy efficiency gains achieved through the energy efficiency and conservation strategy of the State during the preceding calendar year; and 

(D) specific energy efficiency and conservation goals of 

the State for subsequent calendar years. 

SEC. 546. COMPETITIVE GRANTS. 

(a) IN GENERAL.—Of the total amount made available for each 

fiscal year to carry out this subtitle, the Secretary shall use not 

less than 2 percent to provide grants under this section, on a competitive basis, to—

(1) units of local government (including Indian tribes) that 

are not eligible entities; and 

(2) consortia of units of local government described in paragraph (1). 

(b) APPLICATIONS.—To be eligible to receive a grant under this 

section, a unit of local government or consortia shall submit to the 

Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including 

a plan of the unit of local government to carry out an activity described in section 544. 

(c) PRIORITY.—In providing grants under this section, the Secretary shall give priority to units of local government— (1) located in States with populations of less than 2,000,000; 

or 

(2) that plan to carry out projects that would result in significant energy efficiency improvements or reductions in fossil 

fuel use. 

SEC. 547. REVIEW AND EVALUATION. 

(a) IN GENERAL.—The Secretary may review and evaluate the 

performance of any eligible entity that receives a grant under the 

program, including by conducting an audit, as the Secretary determines to be appropriate. 

(b) WITHHOLDING OF FUNDS.—The Secretary may withhold from 

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ble entity under the program if the Secretary determines that the 

eligible entity has failed to achieve compliance with—

(1) any applicable guideline or regulation of the Secretary relating to the program, including the misuse or misappropriation of funds provided under the program; or 

(2) the energy efficiency and conservation strategy of the eligible entity. 

SEC. 548. FUNDING. 

(a) AUTHORIZATION OF APPROPRIATIONS.—

(1) GRANTS.—There is authorized to be appropriated to the 

Secretary for the provision of grants under the program 

$2,000,000,000 for each of fiscal years 2008 through 2012; provided that 49 percent of the appropriated funds shall be distributed using the definition of eligible unit of local government–alternative 1 in section 541(3)(A) and 49 percent of the 

appropriated funds shall be distributed using the definition of 

eligible unit of local government–alternative 2 in section 

541(3)(B). 

(2) ADMINISTRATIVE COSTS.—There are authorized to be appropriated to the Secretary for administrative expenses of the 

program—

(A) $20,000,000 for each of fiscal years 2008 and 2009; 

(B) $25,000,000 for each of fiscal years 2010 and 2011; 

and 

(C) $30,000,000 for fiscal year 2012. 

(b) MAINTENANCE OF FUNDING.—The funding provided under this 

section shall supplement (and not supplant) other Federal funding 

provided under—

(1) a State energy conservation plan established under part 

D of title III of the Energy Policy and Conservation Act (42 

U.S.C. 6321 et seq.); or 

(2) the Weatherization Assistance Program for Low-Income 

Persons established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.). 

TITLE VI—ACCELERATED RESEARCH AND 

DEVELOPMENT 

Subtitle A—Solar Energy 

SEC. 601. SHORT TITLE. 

This subtitle may be cited as the ‘‘Solar Energy Research and 

Advancement Act of 2007’’. 

SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish a program of 

research and development to provide lower cost and more viable 

thermal energy storage technologies to enable the shifting of electric power loads on demand and extend the operating time of concentrating solar power electric generating plants. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for carrying out this section 

$5,000,000 for fiscal year 2008, $7,000,000 for fiscal year 2009, 

$9,000,000 for fiscal year 2010, $10,000,000 for fiscal year 2011, 

and $12,000,000 for fiscal year 2012. 


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SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES. 

(a) INTEGRATION.—The Secretary shall conduct a study on methods to integrate concentrating solar power and utility-scale photovoltaic systems into regional electricity transmission systems, and 

to identify new transmission or transmission upgrades needed to 

bring electricity from high concentrating solar power resource areas 

to growing electric power load centers throughout the United 

States. The study shall analyze and assess cost-effective approaches for management and large-scale integration of concentrating solar power and utility-scale photovoltaic systems into regional electric transmission grids to improve electric reliability, to 

efficiently manage load, and to reduce demand on the natural gas 

transmission system for electric power. The Secretary shall submit 

a report to Congress on the results of this study not later than 12 

months after the date of enactment of this Act. 

(b) WATER CONSUMPTION.—Not later than 6 months after the 

date of the enactment of this Act, the Secretary of Energy shall 

transmit to Congress a report on the results of a study on methods 

to reduce the amount of water consumed by concentrating solar 

power systems. 

SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND CERTIFICATION GRANTS. 

(a) ESTABLISHMENT.—The Secretary shall establish in the Office 

of Solar Energy Technologies a competitive grant program to create 

and strengthen solar industry workforce training and internship 

programs in installation, operation, and maintenance of solar energy products. The goal of this program is to ensure a supply of 

well-trained individuals to support the expansion of the solar energy industry. 

(b) AUTHORIZED ACTIVITIES.—Grant funds may be used to support the following activities: 

(1) Creation and development of a solar energy curriculum 

appropriate for the local educational, entrepreneurial, and environmental conditions, including curriculum for community 

colleges. 

(2) Support of certification programs for individual solar energy system installers, instructors, and training programs. 

(3) Internship programs that provide hands-on participation 

by students in commercial applications. 

(4) Activities required to obtain certification of training programs and facilities by an industry-accepted quality-control 

certification program. 

(5) Incorporation of solar-specific learning modules into traditional occupational training and internship programs for construction-related trades. 

(6) The purchase of equipment necessary to carry out activities under this section. 

(7) Support of programs that provide guidance and updates 

to solar energy curriculum instructors. 

(c) ADMINISTRATION OF GRANTS.—Grants may be awarded under 

this section for up to 3 years. The Secretary shall award grants to 

ensure sufficient geographic distribution of training programs nationally. Grants shall only be awarded for programs certified by an 

industry-accepted quality-control certification institution, or for 


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new and growing programs with a credible path to certification. 

Due consideration shall be given to women, underrepresented minorities, and persons with disabilities. 

(d) REPORT.—The Secretary shall make public, on the website of 

the Department or upon request, information on the name and institution for all grants awarded under this section, including a brief 

description of the project as well as the grant award amount. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for carrying out this section 

$10,000,000 for each of the fiscal years 2008 through 2012. 

SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE 

TECHNOLOGY. 

(a) ESTABLISHMENT.—The Secretary shall establish a program of 

research and development to provide assistance in the demonstration and commercial application of direct solar renewable energy 

sources to provide alternatives to traditional power generation for 

lighting and illumination, including light pipe technology, and to 

promote greater energy conservation and improved efficiency. All 

direct solar renewable energy devices supported under this program shall have the capability to provide measurable data on the 

amount of kilowatt-hours saved over the traditionally powered light 

sources they have replaced. 

(b) REPORTING.—The Secretary shall transmit to Congress an annual report assessing the measurable data derived from each 

project in the direct solar renewable energy sources program and 

the energy savings resulting from its use. 

(c) DEFINITIONS.—For purposes of this section—

(1) the term ‘‘direct solar renewable energy’’ means energy 

from a device that converts sunlight into useable light within 

a building, tunnel, or other enclosed structure, replacing artificial light generated by a light fixture and doing so without the 

conversion of the sunlight into another form of energy; and 

(2) the term ‘‘light pipe’’ means a device designed to transport visible solar radiation from its collection point to the interior of a building while excluding interior heat gain in the nonheating season. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for carrying out this section 

$3,500,000 for each of the fiscal years 2008 through 2012. 

SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT 

PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish a research, 

development, and demonstration program to promote less costly 

and more reliable decentralized distributed solar-powered air conditioning for individuals and businesses. 

(b) AUTHORIZED ACTIVITIES.—Grants made available under this 

section may be used to support the following activities: 

(1) Advancing solar thermal collectors, including concentrating solar thermal and electric systems, flat plate and evacuated tube collector performance. 

(2) Achieving technical and economic integration of solarpowered distributed air-conditioning systems with existing hot 

water and storage systems for residential applications. 


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(3) Designing and demonstrating mass manufacturing capability to reduce costs of modular standardized solar-powered 

distributed air conditioning systems and components. 

(4) Improving the efficiency of solar-powered distributed airconditioning to increase the effectiveness of solar-powered absorption chillers, solar-driven compressors and condensors, and 

cost-effective precooling approaches. 

(5) Researching and comparing performance of solar-powered 

distributed air conditioning systems in different regions of the 

country, including potential integration with other onsite systems, such as solar, biogas, geothermal heat pumps, and propane assist or combined propane fuel cells, with a goal to develop site-specific energy production and management systems 

that ease fuel and peak utility loading. 

(c) COST SHARING.—Section 988 of the Energy Policy Act of 2005 

(42 U.S.C. 16352) shall apply to a project carried out under this 

section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for carrying out this section 

$2,500,000 for each of the fiscal years 2008 through 2012. 

SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM. 

(a) IN GENERAL.—The Secretary shall establish a program of 

grants to States to demonstrate advanced photovoltaic technology. 

(b) REQUIREMENTS.— (1) ABILITY TO MEET REQUIREMENTS.—To receive funding 

under the program under this section, a State must submit a 

proposal that demonstrates, to the satisfaction of the Secretary, that the State will meet the requirements of subsection 

(f). 

(2) COMPLIANCE WITH REQUIREMENTS.—If a State has received funding under this section for the preceding year, the 

State must demonstrate, to the satisfaction of the Secretary, 

that it complied with the requirements of subsection (f) in carrying out the program during that preceding year, and that it 

will do so in the future, before it can receive further funding 

under this section. 

(c) COMPETITION.—The Secretary shall award grants on a competitive basis to the States with the proposals the Secretary considers most likely to encourage the widespread adoption of photovoltaic technologies. The Secretary shall take into consideration the 

geographic distribution of awards. 

(d) PROPOSALS.—Not later than 6 months after the date of enactment of this Act, and in each subsequent fiscal year for the life of 

the program, the Secretary shall solicit proposals from the States 

to participate in the program under this section. 

(e) COMPETITIVE CRITERIA.—In awarding funds in a competitive 

allocation under subsection (c), the Secretary shall consider—

(1) the likelihood of a proposal to encourage the demonstration of, or lower the costs of, advanced photovoltaic technologies; and 

(2) the extent to which a proposal is likely to—

(A) maximize the amount of photovoltaics demonstrated; 

(B) maximize the proportion of non-Federal cost share; 

and 

(C) limit State administrative costs. 


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(f) STATE PROGRAM.—A program operated by a State with funding under this section shall provide competitive awards for the 

demonstration of advanced photo-voltaic technologies. Each State 

program shall—

(1) require a contribution of at least 60 percent per award 

from non-Federal sources, which may include any combination 

of State, local, and private funds, except that at least 10 percent of the funding must be supplied by the State; 

(2) endeavor to fund recipients in the commercial, industrial, 

institutional, governmental, and residential sectors; 

(3) limit State administrative costs to no more than 10 percent of the grant; 

(4) report annually to the Secretary on—

(A) the amount of funds disbursed; 

(B) the amount of photovoltaics purchased; and 

(C) the results of the monitoring under paragraph (5); 

(5) provide for measurement and verification of the output of 

a representative sample of the photovoltaics systems demonstrated throughout the average working life of the systems, 

or at least 20 years; and 

(6) require that applicant buildings must have received an 

independent energy efficiency audit during the 6-month period 

preceding the filing of the application. 

(g) UNEXPENDED FUNDS.—If a State fails to expend any funds received under this section within 3 years of receipt, such remaining 

funds shall be returned to the Treasury. 

(h) REPORTS.—The Secretary shall report to Congress 5 years 

after funds are first distributed to the States under this section—

(1) the amount of photovoltaics demonstrated; 

(2) the number of projects undertaken; 

(3) the administrative costs of the program; 

(4) the results of the monitoring under subsection (f)(5); and 

(5) the total amount of funds distributed, including a breakdown by State. 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary for the purposes of carrying out 

this section—

(1) $15,000,000 for fiscal year 2008; 

(2) $30,000,000 for fiscal year 2009; 

(3) $45,000,000 for fiscal year 2010; 

(4) $60,000,000 for fiscal year 2011; and 

(5) $70,000,000 for fiscal year 2012. 

Subtitle B—Geothermal Energy 

SEC. 611. SHORT TITLE. 

This subtitle may be cited as the ‘‘Advanced Geothermal Energy 

Research and Development Act of 2007’’. 

SEC. 612. DEFINITIONS. 

For purposes of this subtitle: 

(1) ENGINEERED.—When referring to enhanced geothermal 

systems, the term ‘‘engineered’’ means subjected to intervention, including intervention to address one or more of the following issues: 


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(A) Lack of effective permeability or porosity or open 

fracture connectivity within the reservoir. 

(B) Insufficient contained geofluid in the reservoir. 

(C) A low average geothermal gradient, which necessitates deeper drilling. 

(2) ENHANCED GEOTHERMAL SYSTEMS.—The term ‘‘enhanced 

geothermal systems’’ means geothermal reservoir systems that 

are engineered, as opposed to occurring naturally. 

(3) GEOFLUID.—The term ‘‘geofluid’’ means any fluid used to 

extract thermal energy from the Earth which is transported to 

the surface for direct use or electric power generation, except 

that such term shall not include oil or natural gas. 

(4) GEOPRESSURED RESOURCES.—The term ‘‘geopressured resources’’ mean geothermal deposits found in sedimentary rocks 

under higher than normal pressure and saturated with gas or 

methane. 

(5) GEOTHERMAL.—The term ‘‘geothermal’’ refers to heat energy stored in the Earth’s crust that can be accessed for direct 

use or electric power generation. 

(6) HYDROTHERMAL.—The term ‘‘hydrothermal’’ refers to naturally occurring subsurface reservoirs of hot water or steam. 

(7) SYSTEMS APPROACH.—The term ‘‘systems approach’’

means an approach to solving problems or designing systems 

that attempts to optimize the performance of the overall system, rather than a particular component of the system. 

SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary shall support programs of research, development, demonstration, and commercial application to 

expand the use of geothermal energy production from hydrothermal 

systems, including the programs described in subsection (b). 

(b) PROGRAMS.—

(1) ADVANCED HYDROTHERMAL RESOURCE TOOLS.—The Secretary, in consultation with other appropriate agencies, shall 

support a program to develop advanced geophysical, geochemical, and geologic tools to assist in locating hidden hydrothermal resources, and to increase the reliability of site characterization before, during, and after initial drilling. The program shall develop new prospecting techniques to assist in 

prioritization of targets for characterization. The program shall 

include a field component. 

(2) INDUSTRY COUPLED EXPLORATORY DRILLING.—The Secretary shall support a program of cost-shared field demonstration programs, to be pursued, simultaneously and independently, in collaboration with industry partners, for the demonstration of advanced technologies and techniques of siting 

and exploratory drilling for undiscovered resources in a variety 

of geologic settings. The program shall include incentives to encourage the use of advanced technologies and techniques. 

SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT. 

(a) SUBSURFACE COMPONENTS AND SYSTEMS.—The Secretary 

shall support a program of research, development, demonstration, 

and commercial application of components and systems capable of 

withstanding extreme geothermal environments and necessary to 


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cost-effectively develop, produce, and monitor geothermal reservoirs 

and produce geothermal energy. These components and systems 

shall include advanced casing systems (expandable tubular casing, 

low-clearance casing designs, and others), high-temperature cements, high-temperature submersible pumps, and high-temperature packers, as well as technologies for under-reaming, multilateral completions, high-temperature and high-pressure logging, logging while drilling, deep fracture stimulation, and reservoir system 

diagnostics. 

(b) RESERVOIR PERFORMANCE MODELING.—The Secretary shall 

support a program of research, development, demonstration, and 

commercial application of models of geothermal reservoir performance, with an emphasis on accurately modeling performance over 

time. Models shall be developed to assist both in the development 

of geothermal reservoirs and to more accurately account for stressrelated effects in stimulated hydrothermal and enhanced geothermal systems production environments. 

(c) ENVIRONMENTAL IMPACTS.—The Secretary shall— (1) support a program of research, development, demonstration, and commercial application of technologies and practices 

designed to mitigate or preclude potential adverse environmental impacts of geothermal energy development, production 

or use, and seek to ensure that geothermal energy development 

is consistent with the highest practicable standards of environmental stewardship; 

(2) in conjunction with the Assistant Administrator for Research and Development at the Environmental Protection 

Agency, support a research program to identify potential environmental impacts of geothermal energy development, production, and use, and ensure that the program described in paragraph (1) addresses such impacts, including effects on groundwater and local hydrology; and 

(3) support a program of research to compare the potential 

environmental impacts identified as part of the development, 

production, and use of geothermal energy with the potential 

emission reductions of greenhouse gases gained by geothermal 

energy development, production, and use. 

SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary shall support a program of research, development, demonstration, and commercial application 

for enhanced geothermal systems, including the programs described in subsection (b). 

(b) PROGRAMS.—

(1) ENHANCED GEOTHERMAL SYSTEMS TECHNOLOGIES.—The 

Secretary shall support a program of research, development, 

demonstration, and commercial application of the technologies 

and knowledge necessary for enhanced geothermal systems to 

advance to a state of commercial readiness, including advances 

in—

(A) reservoir stimulation; 

(B) reservoir characterization, monitoring, and modeling; 

(C) stress mapping; 

(D) tracer development; 

(E) three-dimensional tomography; and 


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(F) understanding seismic effects of reservoir engineering and stimulation. 

(2) ENHANCED GEOTHERMAL SYSTEMS RESERVOIR STIMULATION.—

(A) PROGRAM.—In collaboration with industry partners, 

the Secretary shall support a program of research, development, and demonstration of enhanced geothermal systems reservoir stimulation technologies and techniques. A 

minimum of 4 sites shall be selected in locations that show 

particular promise for enhanced geothermal systems development. Each site shall—

(i) represent a different class of subsurface geologic 

environments; and 

(ii) take advantage of an existing site where subsurface characterization has been conducted or existing drill holes can be utilized, if possible. 

(B) CONSIDERATION OF EXISTING SITE.—The Desert Peak, 

Nevada, site, where a Department of Energy and industry 

cooperative enhanced geothermal systems project is already underway, may be considered for inclusion among 

the sites selected under subparagraph (A). 

SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS 

FIELDS AND RECOVERY AND PRODUCTION OF 

GEOPRESSURED GAS RESOURCES. 

(a) IN GENERAL.—The Secretary shall establish a program of research, development, demonstration, and commercial application to 

support development of geothermal energy production from oil and 

gas fields and production and recovery of energy, including electricity, from geopressured resources. In addition, the Secretary 

shall conduct such supporting activities including research, resource characterization, and technology development as necessary. 

(b) GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS

FIELDS.—The Secretary shall implement a grant program in support of geothermal energy production from oil and gas fields. The 

program shall include grants for a total of not less than three demonstration projects of the use of geothermal techniques such as advanced organic rankine cycle systems at marginal, unproductive, 

and productive oil and gas wells. The Secretary shall, to the extent 

practicable and in the public interest, make awards that—

(1) include not less than five oil or gas well sites per project 

award; 

(2) use a range of oil or gas well hot water source temperatures from 150 degrees Fahrenheit to 300 degrees Fahrenheit; 

(3) cover a range of sizes up to one megawatt; 

(4) are located at a range of sites; 

(5) can be replicated at a wide range of sites; 

(6) facilitate identification of optimum techniques among 

competing alternatives; 

(7) include business commercialization plans that have the 

potential for production of equipment at high volumes and operation and support at a large number of sites; and 

(8) satisfy other criteria that the Secretary determines are 

necessary to carry out the program and collect necessary data 

and information. 


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The Secretary shall give preference to assessments that address 

multiple elements contained in paragraphs (1) through (8). 

(c) GRANT AWARDS.—Each grant award for demonstration of geothermal technology such as advanced organic rankine cycle systems 

at oil and gas wells made by the Secretary under subsection (b) 

shall include— (1) necessary and appropriate site engineering study; 

(2) detailed economic assessment of site specific conditions; 

(3) appropriate feasibility studies to determine whether the 

demonstration can be replicated; 

(4) design or adaptation of existing technology for site specific circumstances or conditions; 

(5) installation of equipment, service, and support; 

(6) operation for a minimum of one year and monitoring for 

the duration of the demonstration; and 

(7) validation of technical and economic assumptions and 

documentation of lessons learned. 

(d) GEOPRESSURED GAS RESOURCE RECOVERY AND PRODUCTION.— (1) The Secretary shall implement a program to support the research, development, demonstration, and commercial application of 

cost-effective techniques to produce energy from geopressured resources. 

(2) The Secretary shall solicit preliminary engineering designs 

for geopressured resources production and recovery facilities. 

(3) Based upon a review of the preliminary designs, the Secretary 

shall award grants, which may be cost-shared, to support the detailed development and completion of engineering, architectural 

and technical plans needed to support construction of new designs. 

(4) Based upon a review of the final design plans above, the Secretary shall award cost-shared development and construction 

grants for demonstration geopressured production facilities that 

show potential for economic recovery of the heat, kinetic energy 

and gas resources from geopressured resources. 

(e) COMPETITIVE GRANT SELECTION.—Not less than 90 days after 

the date of the enactment of this Act, the Secretary shall conduct 

a national solicitation for applications for grants under the programs outlined in subsections (b) and (d). Grant recipients shall be 

selected on a competitive basis based on criteria in the respective 

subsection. 

(f) WELL DRILLING.—No funds may be used under this section for 

the purpose of drilling new wells. 

SEC. 617. COST SHARING AND PROPOSAL EVALUATION. 

(a) FEDERAL SHARE.—The Federal share of costs of projects funded under this subtitle shall be in accordance with section 988 of the 

Energy Policy Act of 2005. 

(b) ORGANIZATION AND ADMINISTRATION OF PROGRAMS.—Programs under this subtitle shall incorporate the following elements: 

(1) The Secretary shall coordinate with, and where appropriate may provide funds in furtherance of the purposes of this 

subtitle to, other Department of Energy research and development programs focused on drilling, subsurface characterization, and other related technologies. 

(2) In evaluating proposals, the Secretary shall give priority 

to proposals that demonstrate clear evidence of employing a 

systems approach. 


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(3) The Secretary shall coordinate and consult with the appropriate Federal land management agencies in selecting proposals for funding under this subtitle. 

(4) Nothing in this subtitle shall be construed to alter or affect any law relating to the management or protection of Federal lands. 

SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER. 

(a) IN GENERAL.—The Secretary shall award to an institution of 

higher education (or consortium thereof) a grant to establish a Center for Geothermal Technology Transfer (referred to in this section 

as the ‘‘Center’’). 

(b) DUTIES.—The Center shall—

(1) serve as an information clearinghouse for the geothermal 

industry by collecting and disseminating information on best 

practices in all areas relating to developing and utilizing geothermal resources; 

(2) make data collected by the Center available to the public; 

and 

(3) seek opportunities to coordinate efforts and share information with domestic and international partners engaged in 

research and development of geothermal systems and related 

technology. 

(c) SELECTION CRITERIA.—In awarding the grant under subsection (a) the Secretary shall select an institution of higher education (or consortium thereof) best suited to provide national leadership on geothermal related issues and perform the duties enumerated under subsection (b). 

(d) DURATION OF GRANT.—A grant made under subsection (a)—

(1) shall be for an initial period of 5 years; and 

(2) may be renewed for additional 5-year periods on the basis 

of—

(A) satisfactory performance in meeting the duties outlined in subsection (b); and 

(B) any other requirements specified by the Secretary. 

SEC. 619. GEOPOWERING AMERICA. 

The Secretary shall expand the Department of Energy’s 

GeoPowering the West program to extend its geothermal technology transfer activities throughout the entire United States. The 

program shall be renamed ‘‘GeoPowering America’’. The program 

shall continue to be based in the Department of Energy office in 

Golden, Colorado. 

SEC. 620. EDUCATIONAL PILOT PROGRAM. 

The Secretary shall seek to award grant funding, on a competitive basis, to an institution of higher education for a geothermalpowered energy generation facility on the institution’s campus. The 

purpose of the facility shall be to provide electricity and space heating. The facility shall also serve as an educational resource to students in relevant fields of study, and the data generated by the facility shall be available to students and the general public. The 

total funding award shall not exceed $2,000,000. 

SEC. 621. REPORTS. 

(a) REPORTS ON ADVANCED USES OF GEOTHERMAL ENERGY.—Not 

later than 3 years and 5 years after the date of enactment of this 


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Act, the Secretary shall report to the Committee on Science and 

Technology of the House of Representatives and the Committee on 

Energy and Natural Resources of the Senate on advanced concepts 

and technologies to maximize the geothermal resource potential of 

the United States. The reports shall include— (1) the use of carbon dioxide as an alternative geofluid with 

potential carbon sequestration benefits; 

(2) mineral recovery from geofluids; 

(3) use of geothermal energy to produce hydrogen; 

(4) use of geothermal energy to produce biofuels; 

(5) use of geothermal heat for oil recovery from oil shales 

and tar sands; and 

(6) other advanced geothermal technologies, including advanced drilling technologies and advanced power conversion 

technologies. 

(b) PROGRESS REPORTS.—(1) Not later than 36 months after the 

date of enactment of this Act, the Secretary shall submit to the 

Committee on Science and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the 

Senate an interim report describing the progress made under this 

subtitle. At the end of 60 months, the Secretary shall submit to 

Congress a report on the results of projects undertaken under this 

subtitle and other such information the Secretary considers appropriate. 

(2) As necessary, the Secretary shall report to the Congress on 

any legal, regulatory, or other barriers encountered that hinder 

economic development of these resources, and provide recommendations on legislative or other actions needed to address such impediments. 

SEC. 622. APPLICABILITY OF OTHER LAWS. 

Nothing in this subtitle shall be construed as waiving, modifying, 

or superseding the applicability of any requirement under any environmental or other Federal or State law. To the extent that activities authorized in this subtitle take place in coastal and ocean 

areas, the Secretary shall consult with the Secretary of Commerce, 

acting through the Under Secretary of Commerce for Oceans and 

Atmosphere, regarding the potential marine environmental impacts 

and measures to address such impacts. 

SEC. 623. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary to carry 

out this subtitle $90,000,000 for each of the fiscal years 2008 

through 2012, of which $10,000,000 for each fiscal year shall be for 

carrying out section 616. There are also authorized to be appropriated to the Secretary for the Intermountain West Geothermal 

Consortium $5,000,000 for each of the fiscal years 2008 through 

2012. 

SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT. 

(a) IN GENERAL.—The Secretary of Energy, in coordination with 

other appropriate Federal and multilateral agencies (including the 

United States Agency for International Development) shall support 

international collaborative efforts to promote the research, development, and deployment of geothermal technologies used to develop 

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opment Facility, Australia, China, France, the Republic of Iceland, 

India, Japan, and the United Kingdom. 

(b) UNITED STATES TRADE AND DEVELOPMENT AGENCY.—The Director of the United States Trade and Development Agency may—

(1) encourage participation by United States firms in actions 

taken to carry out subsection (a); and 

(2) provide grants and other financial support for feasibility 

and resource assessment studies conducted in, or intended to 

benefit, less developed countries. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2012. 

SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—

(A) a utility; 

(B) an electric cooperative; 

(C) a State; 

(D) a political subdivision of a State; 

(E) an Indian tribe; or 

(F) a Native corporation. 

(2) HIGH-COST REGION.—The term ‘‘high-cost region’’ means 

a region in which the average cost of electrical power exceeds 

150 percent of the national average retail cost, as determined 

by the Secretary. 

(b) PROGRAM.—The Secretary shall use amounts made available 

to carry out this section to make grants to eligible entities for activities described in subsection (c). 

(c) ELIGIBLE ACTIVITIES.—An eligible entity may use grant funds 

under this section, with respect to a geothermal energy project in 

a high-cost region, only—

(1) to conduct a feasibility study, including a study of exploration, geochemical testing, geomagnetic surveys, geologic information gathering, baseline environmental studies, well drilling, resource characterization, permitting, and economic analysis; 

(2) for design and engineering costs, relating to the project; 

and 

(3) to demonstrate and promote commercial application of 

technologies related to geothermal energy as part of the 

project. 

(d) COST SHARING.—The cost-sharing requirements of section 988 

of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to 

any project carried out under this section. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section. 

Subtitle C—Marine and Hydrokinetic Renewable Energy 

Technologies 

SEC. 631. SHORT TITLE. 

This subtitle may be cited as the ‘‘Marine and Hydrokinetic Renewable Energy Research and Development Act’’. 


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SEC. 632. DEFINITION. 

For purposes of this subtitle, the term ‘‘marine and hydrokinetic 

renewable energy’’ means electrical energy from—: 

(1) waves, tides, and currents in oceans, estuaries, and tidal 

areas; 

(2) free flowing water in rivers, lakes, and streams; 

(3) free flowing water in man-made channels; and 

(4) differentials in ocean temperature (ocean thermal energy 

conversion). 

The term ‘‘marine and hydrokinetic renewable energy’’ does not include energy from any source that uses a dam, diversionary structure, or impoundment for electric power purposes. 

SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary, in consultation with the Secretary of the Interior and the Secretary of Commerce, acting 

through the Under Secretary of Commerce for Oceans and Atmosphere, shall establish a program of research, development, demonstration, and commercial application to expand marine and 

hydrokinetic renewable energy production, including programs to— (1) study and compare existing marine and hydrokinetic renewable energy technologies; 

(2) research, develop, and demonstrate marine and 

hydrokinetic renewable energy systems and technologies; 

(3) reduce the manufacturing and operation costs of marine 

and hydrokinetic renewable energy technologies; 

(4) investigate efficient and reliable integration with the utility grid and intermittency issues; 

(5) advance wave forecasting technologies; 

(6) conduct experimental and numerical modeling for optimization of marine energy conversion devices and arrays; 

(7) increase the reliability and survivability of marine and 

hydrokinetic renewable energy technologies, including development of corrosive-resistant materials; 

(8) identify, in conjunction with the Secretary of Commerce, 

acting through the Under Secretary of Commerce for Oceans 

and Atmosphere, and other Federal agencies as appropriate, 

the potential environmental impacts, including potential impacts on fisheries and other marine resources, of marine and 

hydrokinetic renewable energy technologies, measures to prevent adverse impacts, and technologies and other means available for monitoring and determining environmental impacts; 

(9) identify, in conjunction with the Secretary of the Department in which the United States Coast Guard is operating, acting through the Commandant of the United States Coast 

Guard, the potential navigational impacts of marine and 

hydrokinetic renewable energy technologies and measures to 

prevent adverse impacts on navigation; 

(10) develop power measurement standards for marine and 

hydrokinetic renewable energy; 

(11) develop identification standards for marine and 

hydrokinetic renewable energy devices; 

(12) address standards development, demonstration, and 

technology transfer for advanced systems engineering and system integration methods to identify critical interfaces; 


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(13) identifying opportunities for cross fertilization and development of economies of scale between other renewable 

sources and marine and hydrokinetic renewable energy 

sources; and 

(14) providing public information and opportunity for public 

comment concerning all technologies. 

(b) REPORT.—Not later than 18 months after the date of enactment of this Act, the Secretary, in conjunction with the Secretary 

of Commerce, acting through the Undersecretary of Commerce for 

Oceans and Atmosphere, and the Secretary of the Interior, shall 

provide to the Congress a report that addresses— (1) the potential environmental impacts, including impacts to 

fisheries and marine resources, of marine and hydrokinetic renewable energy technologies; 

(2) options to prevent adverse environmental impacts; 

(3) the potential role of monitoring and adaptive management in identifying and addressing any adverse environmental 

impacts; and 

(4) the necessary components of such an adaptive management program. 

SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION CENTERS. 

(a) CENTERS.—The Secretary shall award grants to institutions of 

higher education (or consortia thereof) for the establishment of 1 or 

more National Marine Renewable Energy Research, Development, 

and Demonstration Centers. In selecting locations for Centers, the 

Secretary shall consider sites that meet one of the following criteria: 

(1) Hosts an existing marine renewable energy research and 

development program in coordination with an engineering program at an institution of higher education. 

(2) Has proven expertise to support environmental and policy-related issues associated with harnessing of energy in the 

marine environment. 

(3) Has access to and utilizes the marine resources in the 

Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean. 

The Secretary may give special consideration to historically black 

colleges and universities and land grant universities that also meet 

one of these criteria. In establishing criteria for the selection of the 

Centers, the Secretary shall consult with the Secretary of Commerce, acting through the Under Secretary of Commerce for 

Oceans and Atmosphere, on the criteria related to ocean waves, 

tides, and currents including those for advancing wave forecasting 

technologies, ocean temperature differences, and studying the compatibility of marine renewable energy technologies and systems 

with the environment, fisheries, and other marine resources. 

(b) PURPOSES.—The Centers shall advance research, development, demonstration, and commercial application of marine renewable energy, and shall serve as an information clearinghouse for 

the marine renewable energy industry, collecting and disseminating information on best practices in all areas related to developing and managing enhanced marine renewable energy systems 

resources. 

(c) DEMONSTRATION OF NEED.—When applying for a grant under 

this section, an applicant shall include a description of why Federal 


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support is necessary for the Center, including evidence that the research of the Center will not be conducted in the absence of Federal support. 

SEC. 635. APPLICABILITY OF OTHER LAWS. 

Nothing in this subtitle shall be construed as waiving, modifying, 

or superseding the applicability of any requirement under any environmental or other Federal or State law. 

SEC. 636. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary to carry 

out this subtitle $50,000,000 for each of the fiscal years 2008 

through 2012, except that no funds shall be appropriated under 

this section for activities that are receiving funds under section 

931(a)(2)(E)(i) of the Energy Policy Act of 2005 (42 U.S.C. 

16231(a)(2)(E)(i)). 

Subtitle D—Energy Storage for Transportation and Electric 

Power 

SEC. 641. ENERGY STORAGE COMPETITIVENESS. 

(a) SHORT TITLE.—This section may be cited as the ‘‘United 

States Energy Storage Competitiveness Act of 2007’’. 

(b) DEFINITIONS.—In this section: 

(1) COUNCIL.—The term ‘‘Council’’ means the Energy Storage 

Advisory Council established under subsection (e). 

(2) COMPRESSED AIR ENERGY STORAGE.—The term ‘‘compressed air energy storage’’ means, in the case of an electricity 

grid application, the storage of energy through the compression 

of air. 

(3) ELECTRIC DRIVE VEHICLE.—The term ‘‘electric drive vehicle’’ means—

(A) a vehicle that uses an electric motor for all or part 

of the motive power of the vehicle, including battery electric, hybrid electric, plug-in hybrid electric, fuel cell, and 

plug-in fuel cell vehicles and rail transportation vehicles; 

or 

(B) mobile equipment that uses an electric motor to replace an internal combustion engine for all or part of the 

work of the equipment. 

(4) ISLANDING.—The term ‘‘islanding’’ means a distributed 

generator or energy storage device continuing to power a location in the absence of electric power from the primary source. 

(5) FLYWHEEL.—The term ‘‘flywheel’’ means, in the case of an 

electricity grid application, a device used to store rotational kinetic energy. 

(6) MICROGRID.—The term ‘‘microgrid’’ means an integrated 

energy system consisting of interconnected loads and distributed energy resources (including generators and energy storage 

devices), which as an integrated system can operate in parallel 

with the utility grid or in an intentional islanding mode. 

(7) SELF-HEALING GRID.—The term ‘‘self-healing grid’’ means 

a grid that is capable of automatically anticipating and responding to power system disturbances (including the isolation 

of failed sections and components), while optimizing the performance and service of the grid to customers. 


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(8) SPINNING RESERVE SERVICES.—The term ‘‘spinning reserve services’’ means a quantity of electric generating capacity 

in excess of the quantity needed to meet peak electric demand. 

(9) ULTRACAPACITOR.—The term ‘‘ultracapacitor’’ means an 

energy storage device that has a power density comparable to 

a conventional capacitor but is capable of exceeding the energy 

density of a conventional capacitor by several orders of magnitude. 

(c) PROGRAM.—The Secretary shall carry out a research, development, and demonstration program to support the ability of the 

United States to remain globally competitive in energy storage systems for electric drive vehicles, stationary applications, and electricity transmission and distribution. 

(d) COORDINATION.—In carrying out the activities of this section, 

the Secretary shall coordinate relevant efforts with appropriate 

Federal agencies, including the Department of Transportation. 

(e) ENERGY STORAGE ADVISORY COUNCIL.—

(1) ESTABLISHMENT.—Not later than 90 days after the date 

of enactment of this Act, the Secretary shall establish an Energy Storage Advisory Council. 

(2) COMPOSITION.—

(A) IN GENERAL.—Subject to subparagraph (B), the 

Council shall consist of not less than 15 individuals appointed by the Secretary, based on recommendations of the 

National Academy of Sciences. 

(B) ENERGY STORAGE INDUSTRY.—The Council shall consist primarily of representatives of the energy storage industry of the United States. 

(C) CHAIRPERSON.—The Secretary shall select a Chairperson for the Council from among the members appointed 

under subparagraph (A). 

(3) MEETINGS.—

(A) IN GENERAL.—The Council shall meet not less than 

once a year. 

(B) FEDERAL ADVISORY COMMITTEE ACT.—The Federal 

Advisory Committee Act (5 U.S.C. App.) shall apply to a 

meeting of the Council. 

(4) PLANS.—No later than 1 year after the date of enactment 

of this Act and every 5 years thereafter, the Council, in conjunction with the Secretary, shall develop a 5-year plan for integrating basic and applied research so that the United States 

retains a globally competitive domestic energy storage industry 

for electric drive vehicles, stationary applications, and electricity transmission and distribution. 

(5) REVIEW.—The Council shall—

(A) assess, every 2 years, the performance of the Department in meeting the goals of the plans developed under 

paragraph (4); and 

(B) make specific recommendations to the Secretary on 

programs or activities that should be established or terminated to meet those goals. 

(f) BASIC RESEARCH PROGRAM.—

(1) BASIC RESEARCH.—The Secretary shall conduct a basic research program on energy storage systems to support electric 


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drive vehicles, stationary applications, and electricity transmission and distribution, including— (A) materials design; 

(B) materials synthesis and characterization; 

(C) electrode-active materials, including electrolytes and 

bioelectrolytes; 

(D) surface and interface dynamics; 

(E) modeling and simulation; and 

(F) thermal behavior and life degradation mechanisms. 

(2) NANOSCIENCE CENTERS.—The Secretary, in cooperation 

with the Council, shall coordinate the activities of the 

nanoscience centers of the Department to help the energy storage research centers of the Department maintain a globally 

competitive posture in energy storage systems for electric drive 

vehicles, stationary applications, and electricity transmission 

and distribution. 

(3) FUNDING.—For activities carried out under this subsection, in addition to funding activities at National Laboratories, the Secretary shall award funds to, and coordinate activities with, a range of stakeholders including the public, private, and academic sectors. 

(g) APPLIED RESEARCH PROGRAM.— (1) IN GENERAL.—The Secretary shall conduct an applied research program on energy storage systems to support electric 

drive vehicles, stationary applications, and electricity transmission and distribution technologies, including— (A) ultracapacitors; 

(B) flywheels; 

(C) batteries and battery systems (including flow batteries); 

(D) compressed air energy systems; 

(E) power conditioning electronics; 

(F) manufacturing technologies for energy storage systems; 

(G) thermal management systems; and 

(H) hydrogen as an energy storage medium. 

(2) FUNDING.—For activities carried out under this subsection, in addition to funding activities at National Laboratories, the Secretary shall provide funds to, and coordinate activities with, a range of stakeholders, including the public, private, and academic sectors. 

(h) ENERGY STORAGE RESEARCH CENTERS.—

(1) IN GENERAL.—The Secretary shall establish, through competitive bids, not more than 4 energy storage research centers 

to translate basic research into applied technologies to advance 

the capability of the United States to maintain a globally competitive posture in energy storage systems for electric drive vehicles, stationary applications, and electricity transmission and 

distribution. 

(2) PROGRAM MANAGEMENT.—The centers shall be managed 

by the Under Secretary for Science of the Department. 

(3) PARTICIPATION AGREEMENTS.—As a condition of participating in a center, a participant shall enter into a participation 

agreement with the center that requires that activities conducted by the participant for the center promote the goal of enVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00209 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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abling the United States to compete successfully in global energy storage markets. 

(4) PLANS.—A center shall conduct activities that promote 

the achievement of the goals of the plans of the Council under 

subsection (e)(4). 

(5) NATIONAL LABORATORIES.—A national laboratory (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 

15801)) may participate in a center established under this subsection, including a cooperative research and development 

agreement (as defined in section 12(d) of the Stevenson-Wydler 

Technology Innovation Act of 1980 (15 U.S.C. 3710a(d))). 

(6) DISCLOSURE.—Section 623 of the Energy Policy Act of 

1992 (42 U.S.C. 13293) may apply to any project carried out 

through a grant, contract, or cooperative agreement under this 

subsection. 

(7) INTELLECTUAL PROPERTY.—In accordance with section 

202(a)(ii) of title 35, United States Code, section 152 of the 

Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 of 

the Federal Nonnuclear Energy Research and Development Act 

of 1974 (42 U.S.C. 5908), the Secretary may require, for any 

new invention developed under this subsection, that—

(A) if an industrial participant is active in a energy storage research center established under this subsection relating to the advancement of energy storage technologies 

carried out, in whole or in part, with Federal funding, the 

industrial participant be granted the first option to negotiate with the invention owner, at least in the field of energy storage technologies, nonexclusive licenses, and royalties on terms that are reasonable, as determined by the 

Secretary; 

(B) if 1 or more industry participants are active in a center, during a 2-year period beginning on the date on which 

an invention is made— (i) the patent holder shall not negotiate any license 

or royalty agreement with any entity that is not an industrial participant under this subsection; and 

(ii) the patent holder shall negotiate nonexclusive licenses and royalties in good faith with any interested 

industrial participant under this subsection; and 

(C) the new invention be developed under such other 

terms as the Secretary determines to be necessary to promote the accelerated commercialization of inventions made 

under this subsection to advance the capability of the 

United States to successfully compete in global energy 

storage markets. 

(i) ENERGY STORAGE SYSTEMS DEMONSTRATIONS.—

(1) IN GENERAL.—The Secretary shall carry out a program of 

new demonstrations of advanced energy storage systems. 

(2) SCOPE.—The demonstrations shall— (A) be regionally diversified; and 

(B) expand on the existing technology demonstration 

program of the Department. 

(3) STAKEHOLDERS.—In carrying out the demonstrations, the 

Secretary shall, to the maximum extent practicable, include 

the participation of a range of stakeholders, including—


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(A) rural electric cooperatives; 

(B) investor owned utilities; 

(C) municipally owned electric utilities; 

(D) energy storage systems manufacturers; 

(E) electric drive vehicle manufacturers; 

(F) the renewable energy production industry; 

(G) State or local energy offices; 

(H) the fuel cell industry; and 

(I) institutions of higher education. 

(4) OBJECTIVES.—Each of the demonstrations shall include 1 

or more of the following: 

(A) Energy storage to improve the feasibility of 

microgrids or islanding, or transmission and distribution 

capability, to improve reliability in rural areas. 

(B) Integration of an energy storage system with a selfhealing grid. 

(C) Use of energy storage to improve security to emergency response infrastructure and ensure availability of 

emergency backup power for consumers. 

(D) Integration with a renewable energy production 

source, at the source or away from the source. 

(E) Use of energy storage to provide ancillary services, 

such as spinning reserve services, for grid management. 

(F) Advancement of power conversion systems to make 

the systems smarter, more efficient, able to communicate 

with other inverters, and able to control voltage. 

(G) Use of energy storage to optimize transmission and 

distribution operation and power quality, which could address overloaded lines and maintenance of transformers 

and substations. 

(H) Use of advanced energy storage for peak load management of homes, businesses, and the grid. 

(I) Use of energy storage devices to store energy during 

nonpeak generation periods to make better use of existing 

grid assets. 

(j) VEHICLE ENERGY STORAGE DEMONSTRATION.—

(1) IN GENERAL.—The Secretary shall carry out a program of 

electric drive vehicle energy storage technology demonstrations. 

(2) CONSORTIA.—The technology demonstrations shall be conducted through consortia, which may include—

(A) energy storage systems manufacturers and suppliers 

of the manufacturers; 

(B) electric drive vehicle manufacturers; 

(C) rural electric cooperatives; 

(D) investor owned utilities; 

(E) municipal and rural electric utilities; 

(F) State and local governments; 

(G) metropolitan transportation authorities; and 

(H) institutions of higher education. 

(3) OBJECTIVES.—The program shall demonstrate 1 or more 

of the following: 

(A) Novel, high capacity, high efficiency energy storage, 

charging, and control systems, along with the collection of 


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data on performance characteristics, such as battery life, 

energy storage capacity, and power delivery capacity. 

(B) Advanced onboard energy management systems and 

highly efficient battery cooling systems. 

(C) Integration of those systems on a prototype vehicular 

platform, including with drivetrain systems for passenger, 

commercial, and nonroad electric drive vehicles. 

(D) New technologies and processes that reduce manufacturing costs. 

(E) Integration of advanced vehicle technologies with 

electricity distribution system and smart metering technology. 

(F) Control systems that minimize emissions profiles in 

cases in which clean diesel engines are part of a plug-in 

hybrid drive system. 

(k) SECONDARY APPLICATIONS AND DISPOSAL OF ELECTRIC DRIVE

VEHICLE BATTERIES.—The Secretary shall carry out a program of 

research, development, and demonstration of—

(1) secondary applications of energy storage devices following 

service in electric drive vehicles; and 

(2) technologies and processes for final recycling and disposal 

of the devices. 

(l) COST SHARING.—The Secretary shall carry out the programs 

established under this section in accordance with section 988 of the 

Energy Policy Act of 2005 (42 U.S.C. 16352). 

(m) MERIT REVIEW OF PROPOSALS.—The Secretary shall carry out 

the programs established under subsections (i), (j), and (k) in accordance with section 989 of the Energy Policy Act of 2005 (42 

U.S.C. 16353). 

(n) COORDINATION AND NONDUPLICATION.—To the maximum extent practicable, the Secretary shall coordinate activities under this 

section with other programs and laboratories of the Department 

and other Federal research programs. 

(o) REVIEW BY NATIONAL ACADEMY OF SCIENCES.—On the business day that is 5 years after the date of enactment of this Act, 

the Secretary shall offer to enter into an arrangement with the National Academy of Sciences to assess the performance of the Department in carrying out this section. 

(p) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out—

(1) the basic research program under subsection (f) 

$50,000,000 for each of fiscal years 2009 through 2018; 

(2) the applied research program under subsection (g) 

$80,000,000 for each of fiscal years 2009 through 2018; and; 

(3) the energy storage research center program under subsection (h) $100,000,000 for each of fiscal years 2009 through 

2018; 

(4) the energy storage systems demonstration program under 

subsection (i) $30,000,000 for each of fiscal years 2009 through 

2018; 

(5) the vehicle energy storage demonstration program under 

subsection (j) $30,000,000 for each of fiscal years 2009 through 

2018; and 


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(6) the secondary applications and disposal of electric drive 

vehicle batteries program under subsection (k) $5,000,000 for 

each of fiscal years 2009 through 2018. 

Subtitle E—Miscellaneous Provisions 

SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary of Energy shall establish a program 

to determine ways in which the weight of motor vehicles could be 

reduced to improve fuel efficiency without compromising passenger 

safety by conducting research, development, and demonstration relating to—

(1) the development of new materials (including cast metal 

composite materials formed by autocombustion synthesis) and 

material processes that yield a higher strength-to-weight ratio 

or other properties that reduce vehicle weight; and 

(2) reducing the cost of—

(A) lightweight materials (including high-strength steel 

alloys, aluminum, magnesium, metal composites, and carbon fiber reinforced polymer composites) with the properties required for construction of lighter-weight vehicles; 

and 

(B) materials processing, automated manufacturing, joining, and recycling lightweight materials for high-volume 

applications. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $80,000,000 for the period 

of fiscal years 2008 through 2012. 

SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ADVANCED INSULATION.—The term ‘‘advanced insulation’’

means insulation that has an R value of not less than R35 per 

inch. 

(2) COVERED REFRIGERATION UNIT.—The term ‘‘covered refrigeration unit’’ means any—

(A) commercial refrigerated truck; 

(B) commercial refrigerated trailer; or 

(C) commercial refrigerator, freezer, or refrigerator-freezer described in section 342(c) of the Energy Policy and 

Conservation Act (42 U.S.C. 6313(c)). 

(b) REPORT.—Not later than 90 days after the date of enactment 

of this Act, the Secretary shall submit to Congress a report that includes an evaluation of— (1) the state of technological advancement of advanced insulation; and 

(2) the projected amount of cost savings that would be generated by implementing advanced insulation into covered refrigeration units. 

(c) DEMONSTRATION PROGRAM.—

(1) ESTABLISHMENT.—If the Secretary determines in the report described in subsection (b) that the implementation of advanced insulation into covered refrigeration units would generate an economically justifiable amount of cost savings, the 

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eration units, shall establish a demonstration program under 

which the Secretary shall demonstrate the cost-effectiveness of 

advanced insulation. 

(2) DISCLOSURE.—The Secretary may, for a period of up to 

five years after an award is granted under the demonstration 

program, exempt from mandatory disclosure under section 552 

of title 5, United States Code (popularly known as the Freedom 

of Information Act) information that the Secretary determines 

would be a privileged or confidential trade secret or commercial or financial information under subsection (b)(4) of such section if the information had been obtained from a non-Government party. 

(3) COST-SHARING.—Section 988 of the Energy Policy Act of 

2005 (42 U.S.C. 16352) shall apply to any project carried out 

under this subsection. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $8,000,000 for the period 

of fiscal years 2009 through 2014. 

SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE. 

Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42 

U.S.C. 15962(b)(1)(B)(ii)) is amended by striking subclause (I) and 

inserting the following: 

‘‘(I)(aa) to remove at least 99 percent of sulfur 

dioxide; or 

‘‘(bb) to emit not more than 0.04 pound SO2 per 

million Btu, based on a 30-day average;’’. 

SEC. 654. H-PRIZE. 

Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) 

is amended by adding at the end the following new subsection: 

‘‘(f) H-PRIZE.—

‘‘(1) PRIZE AUTHORITY.—

‘‘(A) IN GENERAL.—As part of the program under this 

section, the Secretary shall carry out a program to competitively award cash prizes in conformity with this subsection to advance the research, development, demonstration, and commercial application of hydrogen energy technologies. 

‘‘(B) ADVERTISING AND SOLICITATION OF COMPETITORS.—

‘‘(i) ADVERTISING.—The Secretary shall widely advertise prize competitions under this subsection to encourage broad participation, including by individuals, 

universities (including historically Black colleges and 

universities and other minority serving institutions), 

and large and small businesses (including businesses 

owned or controlled by socially and economically disadvantaged persons). 

‘‘(ii) ANNOUNCEMENT THROUGH FEDERAL REGISTER

NOTICE.—The Secretary shall announce each prize 

competition under this subsection by publishing a notice in the Federal Register. This notice shall include 

essential elements of the competition such as the subject of the competition, the duration of the competition, the eligibility requirements for participation in 

the competition, the process for participants to register 


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for the competition, the amount of the prize, and the 

criteria for awarding the prize. ‘‘(C) ADMINISTERING THE COMPETITIONS.—The Secretary 

shall enter into an agreement with a private, nonprofit entity to administer the prize competitions under this subsection, subject to the provisions of this subsection (in this 

subsection referred to as the ‘administering entity’). The 

duties of the administering entity under the agreement 

shall include— ‘‘(i) advertising prize competitions under this subsection and their results; ‘‘(ii) raising funds from private entities and individuals to pay for administrative costs and to contribute 

to cash prizes, including funds provided in exchange 

for the right to name a prize awarded under this subsection; ‘‘(iii) developing, in consultation with and subject to 

the final approval of the Secretary, the criteria for selecting winners in prize competitions under this subsection, based on goals provided by the Secretary; ‘‘(iv) determining, in consultation with the Secretary, the appropriate amount and funding sources 

for each prize to be awarded under this subsection, 

subject to the final approval of the Secretary with respect to Federal funding; ‘‘(v) providing advice and consultation to the Secretary on the selection of judges in accordance with 

paragraph (2)(D), using criteria developed in consultation with and subject to the final approval of the Secretary; and ‘‘(vi) protecting against the administering entity’s 

unauthorized use or disclosure of a registered participant’s trade secrets and confidential business information. Any information properly identified as trade secrets or confidential business information that is submitted by a participant as part of a competitive program under this subsection may be withheld from 

public disclosure. 

‘‘(D) FUNDING SOURCES.—Prizes under this subsection 

shall consist of Federal appropriated funds and any funds 

provided by the administering entity (including funds 

raised pursuant to subparagraph (C)(ii)) for such cash 

prize programs. The Secretary may accept funds from 

other Federal agencies for such cash prizes and, notwithstanding section 3302(b) of title 31, United States Code, 

may use such funds for the cash prize program under this 

subsection. Other than publication of the names of prize 

sponsors, the Secretary may not give any special consideration to any private sector entity or individual in return 

for a donation to the Secretary or administering entity. 

‘‘(E) ANNOUNCEMENT OF PRIZES.—The Secretary may not 

issue a notice required by subparagraph (B)(ii) until all the 

funds needed to pay out the announced amount of the 

prize have been appropriated or committed in writing by 

the administering entity. The Secretary may increase the 


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amount of a prize after an initial announcement is made 

under subparagraph (B)(ii) if— ‘‘(i) notice of the increase is provided in the same 

manner as the initial notice of the prize; and ‘‘(ii) the funds needed to pay out the announced 

amount of the increase have been appropriated or 

committed in writing by the administering entity. ‘‘(F) SUNSET.—The authority to announce prize competitions under this subsection shall terminate on September 

30, 2018. ‘‘(2) PRIZE CATEGORIES.— ‘‘(A) CATEGORIES.—The Secretary shall establish prizes 

under this subsection for—

‘‘(i) advancements in technologies, components, or 

systems related to—

‘‘(I) hydrogen production; 

‘‘(II) hydrogen storage; 

‘‘(III) hydrogen distribution; and 

‘‘(IV) hydrogen utilization; 

‘‘(ii) prototypes of hydrogen-powered vehicles or 

other hydrogen-based products that best meet or exceed objective performance criteria, such as completion 

of a race over a certain distance or terrain or generation of energy at certain levels of efficiency; and 

‘‘(iii) transformational changes in technologies for 

the distribution or production of hydrogen that meet 

or exceed far-reaching objective criteria, which shall 

include minimal carbon emissions and which may include cost criteria designed to facilitate the eventual 

market success of a winning technology. 

‘‘(B) AWARDS.— ‘‘(i) ADVANCEMENTS.—To the extent permitted under 

paragraph (1)(E), the prizes authorized under subparagraph (A)(i) shall be awarded biennially to the 

most significant advance made in each of the four subcategories described in subclauses (I) through (IV) of 

subparagraph (A)(i) since the submission deadline of 

the previous prize competition in the same category 

under subparagraph (A)(i) or the date of enactment of 

this subsection, whichever is later, unless no such advance is significant enough to merit an award. No one 

such prize may exceed $1,000,000. If less than 

$4,000,000 is available for a prize competition under 

subparagraph (A)(i), the Secretary may omit one or 

more subcategories, reduce the amount of the prizes, 

or not hold a prize competition. ‘‘(ii) PROTOTYPES.—To the extent permitted under 

paragraph (1)(E), prizes authorized under subparagraph (A)(ii) shall be awarded biennially in alternate 

years from the prizes authorized under subparagraph 

(A)(i). The Secretary is authorized to award up to one 

prize in this category in each 2-year period. No such 

prize may exceed $4,000,000. If no registered participants meet the objective performance criteria established pursuant to subparagraph (C) for a competition 


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under this clause, the Secretary shall not award a 

prize. ‘‘(iii) TRANSFORMATIONAL TECHNOLOGIES.—To the extent permitted under paragraph (1)(E), the Secretary 

shall announce one prize competition authorized under 

subparagraph (A)(iii) as soon after the date of enactment of this subsection as is practicable. A prize offered under this clause shall be not less than 

$10,000,000, paid to the winner in a lump sum, and 

an additional amount paid to the winner as a match 

for each dollar of private funding raised by the winner 

for the hydrogen technology beginning on the date the 

winner was named. The match shall be provided for 3 

years after the date the prize winner is named or until 

the full amount of the prize has been paid out, whichever occurs first. A prize winner may elect to have the 

match amount paid to another entity that is continuing the development of the winning technology. 

The Secretary shall announce the rules for receiving 

the match in the notice required by paragraph 

(1)(B)(ii). The Secretary shall award a prize under this 

clause only when a registered participant has met the 

objective criteria established for the prize pursuant to 

subparagraph (C) and announced pursuant to paragraph (1)(B)(ii). Not more than $10,000,000 in Federal 

funds may be used for the prize award under this 

clause. The administering entity shall seek to raise 

$40,000,000 toward the matching award under this 

clause. ‘‘(C) CRITERIA.—In establishing the criteria required by 

this subsection, the Secretary—

‘‘(i) shall consult with the Department’s Hydrogen 

Technical and Fuel Cell Advisory Committee; ‘‘(ii) shall consult with other Federal agencies, including the National Science Foundation; and ‘‘(iii) may consult with other experts such as private 

organizations, including professional societies, industry associations, and the National Academy of Sciences 

and the National Academy of Engineering. ‘‘(D) JUDGES.—For each prize competition under this 

subsection, the Secretary in consultation with the administering entity shall assemble a panel of qualified judges to 

select the winner or winners on the basis of the criteria established under subparagraph (C). Judges for each prize 

competition shall include individuals from outside the Department, including from the private sector. A judge, 

spouse, minor children, and members of the judge’s household may not—

‘‘(i) have personal or financial interests in, or be an 

employee, officer, director, or agent of, any entity that 

is a registered participant in the prize competition for 

which he or she will serve as a judge; or ‘‘(ii) have a familial or financial relationship with an 

individual who is a registered participant in the prize 

competition for which he or she will serve as a judge. 


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‘‘(3) ELIGIBILITY.—To be eligible to win a prize under this 

subsection, an individual or entity— ‘‘(A) shall have complied with all the requirements in accordance with the Federal Register notice required under 

paragraph (1)(B)(ii); ‘‘(B) in the case of a private entity, shall be incorporated 

in and maintain a primary place of business in the United 

States, and in the case of an individual, whether participating singly or in a group, shall be a citizen of, or an 

alien lawfully admitted for permanent residence in, the 

United States; and ‘‘(C) shall not be a Federal entity, a Federal employee 

acting within the scope of his employment, or an employee 

of a national laboratory acting within the scope of his employment. ‘‘(4) INTELLECTUAL PROPERTY.—The Federal Government 

shall not, by virtue of offering or awarding a prize under this 

subsection, be entitled to any intellectual property rights derived as a consequence of, or direct relation to, the participation by a registered participant in a competition authorized by 

this subsection. This paragraph shall not be construed to prevent the Federal Government from negotiating a license for the 

use of intellectual property developed for a prize competition 

under this subsection. 

‘‘(5) LIABILITY.— ‘‘(A) WAIVER OF LIABILITY.—The Secretary may require 

registered participants to waive claims against the Federal 

Government and the administering entity (except claims 

for willful misconduct) for any injury, death, damage, or 

loss of property, revenue, or profits arising from the registered participants’ participation in a competition under 

this subsection. The Secretary shall give notice of any 

waiver required under this subparagraph in the notice required by paragraph (1)(B)(ii). The Secretary may not require a registered participant to waive claims against the 

administering entity arising out of the unauthorized use or 

disclosure by the administering entity of the registered 

participant’s trade secrets or confidential business information. 

‘‘(B) LIABILITY INSURANCE.—

‘‘(i) REQUIREMENTS.—Registered participants in a 

prize competition under this subsection shall be required to obtain liability insurance or demonstrate financial responsibility, in amounts determined by the 

Secretary, for claims by—

‘‘(I) a third party for death, bodily injury, or 

property damage or loss resulting from an activity 

carried out in connection with participation in a 

competition under this subsection; and ‘‘(II) the Federal Government for damage or loss 

to Government property resulting from such an 

activity. ‘‘(ii) FEDERAL GOVERNMENT INSURED.—The Federal 

Government shall be named as an additional insured 

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quired under clause (i)(I), and registered participants 

shall be required to agree to indemnify the Federal 

Government against third party claims for damages 

arising from or related to competition activities under 

this subsection. ‘‘(6) REPORT TO CONGRESS.—Not later than 60 days after the 

awarding of the first prize under this subsection, and annually 

thereafter, the Secretary shall transmit to the Congress a report that— ‘‘(A) identifies each award recipient; 

‘‘(B) describes the technologies developed by each award 

recipient; and ‘‘(C) specifies actions being taken toward commercial application of all technologies with respect to which a prize 

has been awarded under this subsection. ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) IN GENERAL.— ‘‘(i) AWARDS.—There are authorized to be appropriated to the Secretary for the period encompassing 

fiscal years 2008 through 2017 for carrying out this 

subsection— ‘‘(I) $20,000,000 for awards described in paragraph (2)(A)(i); ‘‘(II) $20,000,000 for awards described in paragraph (2)(A)(ii); and ‘‘(III) $10,000,000 for the award described in 

paragraph (2)(A)(iii). ‘‘(ii) ADMINISTRATION.—In addition to the amounts 

authorized in clause (i), there are authorized to be appropriated to the Secretary for each of fiscal years 

2008 and 2009 $2,000,000 for the administrative costs 

of carrying out this subsection. ‘‘(B) CARRYOVER OF FUNDS.—Funds appropriated for 

prize awards under this subsection shall remain available 

until expended, and may be transferred, reprogrammed, or 

expended for other purposes only after the expiration of 10 

fiscal years after the fiscal year for which the funds were 

originally appropriated. No provision in this subsection 

permits obligation or payment of funds in violation of section 1341 of title 31 of the United States Code (commonly 

referred to as the Anti-Deficiency Act). ‘‘(8) NONSUBSTITUTION.—The programs created under this 

subsection shall not be considered a substitute for Federal research and development programs.’’. 

SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES. 

(a) ESTABLISHMENT.—Not later than 1 year after the date of enactment of this Act, as part of the program carried out under section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396), the 

Secretary shall establish and award Bright Tomorrow Lighting 

Prizes for solid state lighting in accordance with this section. 

(b) PRIZE SPECIFICATIONS.—

(1) 60-WATT INCANDESCENT REPLACEMENT LAMP PRIZE.—The 

Secretary shall award a 60-Watt Incandescent Replacement 

Lamp Prize to an entrant that produces a solid-state light 

package simultaneously capable of—


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(A) producing a luminous flux greater than 900 lumens; 

(B) consuming less than or equal to 10 watts; 

(C) having an efficiency greater than 90 lumens per 

watt; 

(D) having a color rendering index greater than 90; 

(E) having a correlated color temperature of not less 

than 2,750, and not more than 3,000, degrees Kelvin; 

(F) having 70 percent of the lumen value under subparagraph (A) exceeding 25,000 hours under typical conditions 

expected in residential use; 

(G) having a light distribution pattern similar to a soft 

60-watt incandescent A19 bulb; 

(H) having a size and shape that fits within the maximum dimensions of an A19 bulb in accordance with American National Standards Institute standard C78.20–2003, 

figure C78.20–211; 

(I) using a single contact medium screw socket; and 

(J) mass production for a competitive sales commercial 

market satisfied by producing commercially accepted quality control lots of such units equal to or exceeding the criteria described in subparagraphs (A) through (I). 

(2) PAR TYPE 38 HALOGEN REPLACEMENT LAMP PRIZE.—The 

Secretary shall award a Parabolic Aluminized Reflector Type 

38 Halogen Replacement Lamp Prize (referred to in this section as the ‘‘PAR Type 38 Halogen Replacement Lamp Prize’’) 

to an entrant that produces a solid-state-light package simultaneously capable of— (A) producing a luminous flux greater than or equal to 

1,350 lumens; 

(B) consuming less than or equal to 11 watts; 

(C) having an efficiency greater than 123 lumens per 

watt; 

(D) having a color rendering index greater than or equal 

to 90; 

(E) having a correlated color coordinate temperature of 

not less than 2,750, and not more than 3,000, degrees Kelvin; 

(F) having 70 percent of the lumen value under subparagraph (A) exceeding 25,000 hours under typical conditions 

expected in residential use; 

(G) having a light distribution pattern similar to a PAR 

38 halogen lamp; 

(H) having a size and shape that fits within the maximum dimensions of a PAR 38 halogen lamp in accordance 

with American National Standards Institute standard 

C78–21–2003, figure C78.21–238; 

(I) using a single contact medium screw socket; and 

(J) mass production for a competitive sales commercial 

market satisfied by producing commercially accepted quality control lots of such units equal to or exceeding the criteria described in subparagraphs (A) through (I). 

(3) TWENTY-FIRST CENTURY LAMP PRIZE.—The Secretary shall 

award a Twenty-First Century Lamp Prize to an entrant that 

produces a solid-state-light-light capable of— (A) producing a light output greater than 1,200 lumens; 


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(B) having an efficiency greater than 150 lumens per 

watt; 

(C) having a color rendering index greater than 90; 

(D) having a color coordinate temperature between 2,800 

and 3,000 degrees Kelvin; and 

(E) having a lifetime exceeding 25,000 hours. 

(c) PRIVATE FUNDS.— (1) IN GENERAL.—Subject to paragraph (2), and notwithstanding section 3302 of title 31, United States Code, the Secretary may accept, retain, and use funds contributed by any 

person, government entity, or organization for purposes of carrying out this subsection— (A) without further appropriation; and 

(B) without fiscal year limitation. 

(2) PRIZE COMPETITION.—A private source of funding may not 

participate in the competition for prizes awarded under this 

section. 

(d) TECHNICAL REVIEW.—The Secretary shall establish a technical review committee composed of non-Federal officers to review 

entrant data submitted under this section to determine whether 

the data meets the prize specifications described in subsection (b). 

(e) THIRD PARTY ADMINISTRATION.—The Secretary may competitively select a third party to administer awards under this section. 

(f) ELIGIBILITY FOR PRIZES.—To be eligible to be awarded a prize 

under this section— (1) in the case of a private entity, the entity shall be incorporated in and maintain a primary place of business in the 

United States; and 

(2) in the case of an individual (whether participating as a 

single individual or in a group), the individual shall be a citizen or lawful permanent resident of the United States. 

(g) AWARD AMOUNTS.—Subject to the availability of funds to 

carry out this section, the amount of— (1) the 60-Watt Incandescent Replacement Lamp Prize de- scribed in subsection (b)(1) shall be $10,000,000; 

(2) the PAR Type 38 Halogen Replacement Lamp Prize de- scribed in subsection (b)(2) shall be $5,000,000; and 

(3) the Twenty-First Century Lamp Prize described in sub- section (b)(3) shall be $5,000,000. 

(h) FEDERAL PROCUREMENT OF SOLID-STATE-LIGHTS.—

(1) 60-WATT INCANDESCENT REPLACEMENT.—Subject to paragraph (3), as soon as practicable after the successful award of 

the 60-Watt Incandescent Replacement Lamp Prize under subsection (b)(1), the Secretary (in consultation with the Administrator of General Services) shall develop governmentwide Federal purchase guidelines with a goal of replacing the use of 60- 

watt incandescent lamps in Federal Government buildings 

with a solid-state-light package described in subsection (b)(1) 

by not later than the date that is 5 years after the date the 

award is made. 

(2) PAR 38 HALOGEN REPLACEMENT LAMP REPLACEMENT.— Subject to paragraph (3), as soon as practicable after the successful award of the PAR Type 38 Halogen Replacement Lamp 

Prize under subsection (b)(2), the Secretary (in consultation 

with the Administrator of General Services) shall develop govVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00221 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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ernmentwide Federal purchase guidelines with the goal of replacing the use of PAR 38 halogen lamps in Federal Government buildings with a solid-state-light package described in 

subsection (b)(2) by not later than the date that is 5 years after 

the date the award is made. 

(3) WAIVERS.—

(A) IN GENERAL.—The Secretary or the Administrator of 

General Services may waive the application of paragraph 

(1) or (2) if the Secretary or Administrator determines that 

the return on investment from the purchase of a solidstate-light package described in paragraph (1) or (2) of 

subsection (b), respectively, is cost prohibitive. 

(B) REPORT OF WAIVER.—If the Secretary or Administrator waives the application of paragraph (1) or (2), the 

Secretary or Administrator, respectively, shall submit to 

Congress an annual report that describes the waiver and 

provides a detailed justification for the waiver. 

(i) REPORT.—Not later than 2 years after the date of enactment 

of this Act, and annually thereafter, the Administrator of General 

Services shall submit to the Energy Information Agency a report 

describing the quantity, type, and cost of each lighting product purchased by the Federal Government. 

(j) BRIGHT TOMORROW LIGHTING AWARD FUND.—

(1) ESTABLISHMENT.—There is established in the United 

States Treasury a Bright Tomorrow Lighting permanent fund 

without fiscal year limitation to award prizes under paragraphs (1), (2), and (3) of subsection (b). 

(2) SOURCES OF FUNDING.—The fund established under paragraph (1) shall accept—

(A) fiscal year appropriations; and 

(B) private contributions authorized under subsection (c). 

(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated such sums as are necessary to carry out this section. 

SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING PARTNERSHIP. 

(a) ESTABLISHMENT.—The Secretary shall carry out a program, to 

be known as the Renewable Energy Innovation Manufacturing 

Partnership Program (referred to in this section as the ‘‘Program’’), 

to make assistance awards to eligible entities for use in carrying 

out research, development, and demonstration relating to the manufacturing of renewable energy technologies. 

(b) SOLICITATION.—To carry out the Program, the Secretary shall 

annually conduct a competitive solicitation for assistance awards 

for an eligible project described in subsection (e). 

(c) PROGRAM PURPOSES.—The purposes of the Program are—

(1) to develop, or aid in the development of, advanced manufacturing processes, materials, and infrastructure; 

(2) to increase the domestic production of renewable energy 

technology and components; and 

(3) to better coordinate Federal, State, and private resources 

to meet regional and national renewable energy goals through 

advanced manufacturing partnerships. 


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(d) ELIGIBLE ENTITIES.—An entity shall be eligible to receive an 

assistance award under the Program to carry out an eligible project 

described in subsection (e) if the entity is composed of—

(1) 1 or more public or private nonprofit institutions or national laboratories engaged in research, development, demonstration, or technology transfer, that would participate substantially in the project; and 

(2) 1 or more private entities engaged in the manufacturing 

or development of renewable energy system components (including solar energy, wind energy, biomass, geothermal energy, 

energy storage, or fuel cells). 

(e) ELIGIBLE PROJECTS.—An eligible entity may use an assistance 

award provided under this section to carry out a project relating 

to—

(1) the conduct of studies of market opportunities for component manufacturing of renewable energy systems; 

(2) the conduct of multiyear applied research, development, 

demonstration, and deployment projects for advanced manufacturing processes, materials, and infrastructure for renewable 

energy systems; and 

(3) other similar ventures, as approved by the Secretary, that 

promote advanced manufacturing of renewable technologies. 

(f) CRITERIA AND GUIDELINES.—The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of 

proposed projects under the Program. 

(g) COST SHARING.—Section 988 of the Energy Policy Act of 2005 

(42 U.S.C. 16352) shall apply to a project carried out under this 

section. 

(h) DISCLOSURE.—The Secretary may, for a period of up to five 

years after an award is granted under this section, exempt from 

mandatory disclosure under section 552 of title 5, United States 

Code (popularly known as the Freedom of Information Act) information that the Secretary determines would be a privileged or confidential trade secret or commercial or financial information under 

subsection (b)(4) of such section if the information had been obtained from a non-Government party. 

(i) SENSE OF THE CONGRESS.—It is the sense of the Congress that 

the Secretary should ensure that small businesses engaged in renewable manufacturing be given priority consideration for the assistance awards provided under this section. 

(j) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated out of funds already authorized to carry out this 

section $25,000,000 for each of fiscal years 2008 through 2013, to 

remain available until expended. 

TITLE VII—CARBON CAPTURE AND SEQUESTRATION 

Subtitle A—Carbon Capture and Sequestration Research, 

Development, and Demonstration 

SEC. 701. SHORT TITLE. 

This subtitle may be cited as the ‘‘Department of Energy Carbon 

Capture and Sequestration Research, Development, and Demonstration Act of 2007’’. 


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SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM. 

(a) AMENDMENT.—Section 963 of the Energy Policy Act of 2005 

(42 U.S.C. 16293) is amended—

(1) in the section heading, by striking ‘‘RESEARCH AND 

DEVELOPMENT’’ and inserting ‘‘AND SEQUESTRATION 

RESEARCH, DEVELOPMENT, AND DEMONSTRATION’’; 

(2) in subsection (a)—

(A) by striking ‘‘research and development’’ and inserting 

‘‘and sequestration research, development, and demonstration’’; and 

(B) by striking ‘‘capture technologies on combustionbased systems’’ and inserting ‘‘capture and sequestration 

technologies related to industrial sources of carbon dioxide’’; 

(3) in subsection (b)—

(A) in paragraph (3), by striking ‘‘and’’ at the end; 

(B) in paragraph (4), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(5) to expedite and carry out large-scale testing of carbon sequestration systems in a range of geologic formations that will 

provide information on the cost and feasibility of deployment 

of sequestration technologies.’’; and 

(4) by striking subsection (c) and inserting the following: 

‘‘(c) PROGRAMMATIC ACTIVITIES.—

‘‘(1) FUNDAMENTAL SCIENCE AND ENGINEERING RESEARCH AND

DEVELOPMENT AND DEMONSTRATION SUPPORTING CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES AND CARBON USE ACTIVITIES.—

‘‘(A) IN GENERAL.—The Secretary shall carry out fundamental science and engineering research (including laboratory-scale experiments, numeric modeling, and simulations) to develop and document the performance of new approaches to capture and sequester, or use carbon dioxide 

to lead to an overall reduction of carbon dioxide emissions. 

‘‘(B) PROGRAM INTEGRATION.—The Secretary shall ensure 

that fundamental research carried out under this paragraph is appropriately applied to energy technology development activities, the field testing of carbon sequestration, 

and carbon use activities, including—

‘‘(i) development of new or advanced technologies for 

the capture and sequestration of carbon dioxide; 

‘‘(ii) development of new or advanced technologies 

that reduce the cost and increase the efficacy of advanced compression of carbon dioxide required for the 

sequestration of carbon dioxide; 

‘‘(iii) modeling and simulation of geologic sequestration field demonstrations; 

‘‘(iv) quantitative assessment of risks relating to specific field sites for testing of sequestration technologies; 

‘‘(v) research and development of new and advanced 

technologies for carbon use, including recycling and 

reuse of carbon dioxide; and 


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‘‘(vi) research and development of new and advanced 

technologies for the separation of oxygen from air. ‘‘(2) FIELD VALIDATION TESTING ACTIVITIES.— ‘‘(A) IN GENERAL.—The Secretary shall promote, to the 

maximum extent practicable, regional carbon sequestration partnerships to conduct geologic sequestration tests 

involving carbon dioxide injection and monitoring, mitigation, and verification operations in a variety of candidate 

geologic settings, including— ‘‘(i) operating oil and gas fields; 

‘‘(ii) depleted oil and gas fields; 

‘‘(iii) unmineable coal seams; 

‘‘(iv) deep saline formations; 

‘‘(v) deep geologic systems that may be used as engineered reservoirs to extract economical quantities of 

heat from geothermal resources of low permeability or 

porosity; and ‘‘(vi) deep geologic systems containing basalt formations. ‘‘(B) OBJECTIVES.—The objectives of tests conducted 

under this paragraph shall be—

‘‘(i) to develop and validate geophysical tools, analysis, and modeling to monitor, predict, and verify carbon dioxide containment; 

‘‘(ii) to validate modeling of geologic formations; 

‘‘(iii) to refine sequestration capacity estimated for 

particular geologic formations; 

‘‘(iv) to determine the fate of carbon dioxide concurrent with and following injection into geologic formations; 

‘‘(v) to develop and implement best practices for operations relating to, and monitoring of, carbon dioxide 

injection and sequestration in geologic formations; ‘‘(vi) to assess and ensure the safety of operations related to geologic sequestration of carbon dioxide; ‘‘(vii) to allow the Secretary to promulgate policies, 

procedures, requirements, and guidance to ensure that 

the objectives of this subparagraph are met in largescale testing and deployment activities for carbon capture and sequestration that are funded by the Department of Energy; and ‘‘(viii) to provide information to States, the Environmental Protection Agency, and other appropriate entities to support development of a regulatory framework 

for commercial-scale sequestration operations that ensure the protection of human health and the environment. ‘‘(3) LARGE-SCALE CARBON DIOXIDE SEQUESTRATION TESTING.—‘‘(A) IN GENERAL.—The Secretary shall conduct not less 

than 7 initial large-scale sequestration tests, not including 

the FutureGen project, for geologic containment of carbon 

dioxide to collect and validate information on the cost and 

feasibility of commercial deployment of technologies for 

geologic containment of carbon dioxide. These 7 tests may 


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include any Regional Partnership projects awarded as of 

the date of enactment of the Department of Energy Carbon 

Capture and Sequestration Research, Development, and 

Demonstration Act of 2007. 

‘‘(B) DIVERSITY OF FORMATIONS TO BE STUDIED.—In selecting formations for study under this paragraph, the Secretary shall consider a variety of geologic formations 

across the United States, and require characterization and 

modeling of candidate formations, as determined by the 

Secretary. 

‘‘(C) SOURCE OF CARBON DIOXIDE FOR LARGE-SCALE SEQUESTRATION TESTS.—In the process of any acquisition of 

carbon dioxide for sequestration tests under subparagraph 

(A), the Secretary shall give preference to sources of carbon dioxide from industrial sources. To the extent feasible, 

the Secretary shall prefer tests that would facilitate the 

creation of an integrated system of capture, transportation 

and sequestration of carbon dioxide. The preference provided for under this subparagraph shall not delay the implementation of the large-scale sequestration tests under 

this paragraph. 

‘‘(D) DEFINITION.—For purposes of this paragraph, the 

term ‘large-scale’ means the injection of more than 

1,000,000 tons of carbon dioxide from industrial sources 

annually or a scale that demonstrates the ability to inject 

and sequester several million metric tons of industrial 

source carbon dioxide for a large number of years. 

‘‘(4) PREFERENCE IN PROJECT SELECTION FROM MERITORIOUS

PROPOSALS.—In making competitive awards under this subsection, subject to the requirements of section 989, the Secretary shall—

‘‘(A) give preference to proposals from partnerships 

among industrial, academic, and government entities; and 

‘‘(B) require recipients to provide assurances that all laborers and mechanics employed by contractors and subcontractors in the construction, repair, or alteration of new 

or existing facilities performed in order to carry out a demonstration or commercial application activity authorized 

under this subsection shall be paid wages at rates not less 

than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance 

with subchapter IV of chapter 31 of title 40, United States 

Code, and the Secretary of Labor shall, with respect to the 

labor standards in this paragraph, have the authority and 

functions set forth in Reorganization Plan Numbered 14 of 

1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and section 

3145 of title 40, United States Code. 

‘‘(5) COST SHARING.—Activities under this subsection shall be 

considered research and development activities that are subject 

to the cost sharing requirements of section 988(b). 

‘‘(6) PROGRAM REVIEW AND REPORT.—During fiscal year 2011, 

the Secretary shall—

‘‘(A) conduct a review of programmatic activities carried 

out under this subsection; and 


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‘‘(B) make recommendations with respect to continuation 

of the activities. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section— ‘‘(1) $240,000,000 for fiscal year 2008; 

‘‘(2) $240,000,000 for fiscal year 2009; 

‘‘(3) $240,000,000 for fiscal year 2010; 

‘‘(4) $240,000,000 for fiscal year 2011; and 

‘‘(5) $240,000,000 for fiscal year 2012.’’. (b) TABLE OF CONTENTS AMENDMENT.—The item relating to section 963 in the table of contents for the Energy Policy Act of 2005 

is amended to read as follows: 

‘‘Sec. 963. Carbon capture and sequestration research, development, and demonstration program.’’. 

SEC. 703. CARBON CAPTURE. 

(a) PROGRAM ESTABLISHMENT.— (1) IN GENERAL.—The Secretary shall carry out a program to 

demonstrate technologies for the large-scale capture of carbon 

dioxide from industrial sources. In making awards under this 

program, the Secretary shall select, as appropriate, a diversity 

of capture technologies to address the need to capture carbon 

dioxide from a range of industrial sources. 

(2) SCOPE OF AWARD.—Awards under this section shall be 

only for the portion of the project that— (A) carries out the large-scale capture (including purification and compression) of carbon dioxide from industrial 

sources; 

(B) provides for the transportation and injection of carbon dioxide; and 

(C) incorporates a comprehensive measurement, monitoring, and validation program. 

(3) PREFERENCES FOR AWARD.—To ensure reduced carbon dioxide emissions, the Secretary shall take necessary actions to 

provide for the integration of the program under this paragraph with the large-scale carbon dioxide sequestration tests 

described in section 963(c)(3) of the Energy Policy Act of 2005 

(42 U.S.C. 16293(c)(3)), as added by section 702 of this subtitle. 

These actions should not delay implementation of these tests. 

The Secretary shall give priority consideration to projects with 

the following characteristics: 

(A) CAPACITY.—Projects that will capture a high percentage of the carbon dioxide in the treated stream and large 

volumes of carbon dioxide as determined by the Secretary. 

(B) SEQUESTRATION.—Projects that capture carbon dioxide from industrial sources that are near suitable geological reservoirs and could continue sequestration including—

(i) a field testing validation activity under section 

963 of the Energy Policy Act of 2005 (42 U.S.C. 

16293), as amended by this Act; or 

(ii) other geologic sequestration projects approved by 

the Secretary. 

(4) REQUIREMENT.—For projects that generate carbon dioxide 

that is to be sequestered, the carbon dioxide stream shall be 

of a sufficient purity level to allow for safe transport and sequestration. 


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(5) COST-SHARING.—The cost-sharing requirements of section 

988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for research and development projects shall apply to this section. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary to carry out this section 

$200,000,000 per year for fiscal years 2009 through 2013. 

SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS. 

The Secretary shall enter into an arrangement with the National 

Academy of Sciences for an independent review and oversight, beginning in 2011, of the programs under section 963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C. 16293(c)(3)), as added by section 

702 of this subtitle, and under section 703 of this subtitle, to ensure that the benefits of such programs are maximized. Not later 

than January 1, 2012, the Secretary shall transmit to the Congress 

a report on the results of such review and oversight. 

SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH. 

(a) STUDY.—

(1) IN GENERAL.—The Secretary shall enter into an arrangement with the National Academy of Sciences to undertake a 

study that—

(A) defines an interdisciplinary program in geology, engineering, hydrology, environmental science, and related disciplines that will support the Nation’s capability to capture 

and sequester carbon dioxide from anthropogenic sources; 

(B) addresses undergraduate and graduate education, especially to help develop graduate level programs of research and instruction that lead to advanced degrees with 

emphasis on geologic sequestration science; 

(C) develops guidelines for proposals from colleges and 

universities with substantial capabilities in the required 

disciplines that seek to implement geologic sequestration 

science programs that advance the Nation’s capacity to address carbon management through geologic sequestration 

science; and 

(D) outlines a budget and recommendations for how 

much funding will be necessary to establish and carry out 

the grant program under subsection (b). 

(2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit to the Congress 

a copy of the results of the study provided by the National 

Academy of Sciences under paragraph (1). 

(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary for carrying out this 

subsection $1,000,000 for fiscal year 2008. 

(b) GRANT PROGRAM.—

(1) ESTABLISHMENT.—The Secretary shall establish a competitive grant program through which colleges and universities 

may apply for and receive 4-year grants for—

(A) salary and startup costs for newly designated faculty 

positions in an integrated geologic carbon sequestration 

science program; and 

(B) internships for graduate students in geologic sequestration science. 


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(2) RENEWAL.—Grants under this subsection shall be renewable for up to 2 additional 3-year terms, based on performance 

criteria, established by the National Academy of Sciences study 

conducted under subsection (a), that include the number of 

graduates of such programs. 

(3) INTERFACE WITH REGIONAL GEOLOGIC CARBON SEQUESTRATION PARTNERSHIPS.—To the greatest extent possible, geologic 

carbon sequestration science programs supported under this 

subsection shall interface with the research of the Regional 

Carbon Sequestration Partnerships operated by the Department to provide internships and practical training in carbon 

capture and geologic sequestration. 

(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary for carrying out this 

subsection such sums as may be necessary. 

SEC. 706. RELATION TO SAFE DRINKING WATER ACT. 

The injection and geologic sequestration of carbon dioxide pursuant to this subtitle and the amendments made by this subtitle shall 

be subject to the requirements of the Safe Drinking Water Act (42 

U.S.C. 300f et seq.), including the provisions of part C of such Act 

(42 U.S.C. 300h et seq.; relating to protection of underground 

sources of drinking water). Nothing in this subtitle and the amendments made by this subtitle imposes or authorizes the promulgation of any requirement that is inconsistent or in conflict with the 

requirements of the Safe Drinking Water Act (42 U.S.C. 300f et 

seq.) or regulations thereunder. 

SEC. 707. SAFETY RESEARCH. 

(a) PROGRAM.—The Administrator of the Environmental Protection Agency shall conduct a research program to address public 

health, safety, and environmental impacts that may be associated 

with capture, injection, and sequestration of greenhouse gases in 

geologic reservoirs. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated for carrying out this section $5,000,000 for each 

fiscal year. 

SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT 

PROGRAM. 

(a) ESTABLISHMENT.—The Secretary, in consultation with other 

appropriate agencies, shall establish a university based research 

and development program to study carbon capture and sequestration using the various types of coal. 

(b) RURAL AND AGRICULTURAL INSTITUTIONS.—The Secretary 

shall give special consideration to rural or agricultural based institutions in areas that have regional sources of coal and that offer 

interdisciplinary programs in the area of environmental science to 

study carbon capture and sequestration. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are to be authorized to be appropriated $10,000,000 to carry out this section. 

Subtitle B—Carbon Capture and Sequestration Assessment 

and Framework 

SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT. 

(a) DEFINITIONS.—In this section 


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(1) ASSESSMENT.—The term ‘‘assessment’’ means the national 

assessment of onshore capacity for carbon dioxide completed 

under subsection (f). 

(2) CAPACITY.—The term ‘‘capacity’’ means the portion of a 

sequestration formation that can retain carbon dioxide in accordance with the requirements (including physical, geological, 

and economic requirements) established under the methodology developed under subsection (b). 

(3) ENGINEERED HAZARD.—The term ‘‘engineered hazard’’ includes the location and completion history of any well that 

could affect potential sequestration. 

(4) RISK.—The term ‘‘risk’’ includes any risk posed by 

geomechanical, geochemical, hydrogeological, structural, and 

engineered hazards. 

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of the Interior, acting through the Director of the United 

States Geological Survey. 

(6) SEQUESTRATION FORMATION.—The term ‘‘sequestration 

formation’’ means a deep saline formation, unmineable coal 

seam, or oil or gas reservoir that is capable of accommodating 

a volume of industrial carbon dioxide. 

(b) METHODOLOGY.—Not later than 1 year after the date of enactment of this Act, the Secretary shall develop a methodology for conducting an assessment under subsection (f), taking into consideration—

(1) the geographical extent of all potential sequestration formations in all States; 

(2) the capacity of the potential sequestration formations; 

(3) the injectivity of the potential sequestration formations; 

(4) an estimate of potential volumes of oil and gas recoverable by injection and sequestration of industrial carbon dioxide 

in potential sequestration formations; 

(5) the risk associated with the potential sequestration formations; and 

(6) the work done to develop the Carbon Sequestration Atlas 

of the United States and Canada that was completed by the 

Department. 

(c) COORDINATION.— (1) FEDERAL COORDINATION.— (A) CONSULTATION.—The Secretary shall consult with 

the Secretary of Energy and the Administrator of the Environmental Protection Agency on issues of data sharing, 

format, development of the methodology, and content of 

the assessment required under this section to ensure the 

maximum usefulness and success of the assessment. 

(B) COOPERATION.—The Secretary of Energy and the Administrator shall cooperate with the Secretary to ensure, 

to the maximum extent practicable, the usefulness and 

success of the assessment. 

(2) STATE COORDINATION.—The Secretary shall consult with 

State geological surveys and other relevant entities to ensure, 

to the maximum extent practicable, the usefulness and success 

of the assessment. 

(d) EXTERNAL REVIEW AND PUBLICATION.—On completion of the 

methodology under subsection (b), the Secretary shall—


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(1) publish the methodology and solicit comments from the 

public and the heads of affected Federal and State agencies; 

(2) establish a panel of individuals with expertise in the matters described in paragraphs (1) through (5) of subsection (b) 

composed, as appropriate, of representatives of Federal agencies, institutions of higher education, nongovernmental organizations, State organizations, industry, and international geoscience organizations to review the methodology and comments 

received under paragraph (1); and 

(3) on completion of the review under paragraph (2), publish 

in the Federal Register the revised final methodology. 

(e) PERIODIC UPDATES.—The methodology developed under this 

section shall be updated periodically (including at least once every 

5 years) to incorporate new data as the data becomes available. 

(f) NATIONAL ASSESSMENT.—

(1) IN GENERAL.—Not later than 2 years after the date of 

publication of the methodology under subsection (d)(1), the Secretary, in consultation with the Secretary of Energy and State 

geological surveys, shall complete a national assessment of capacity for carbon dioxide in accordance with the methodology. 

(2) GEOLOGICAL VERIFICATION.—As part of the assessment 

under this subsection, the Secretary shall carry out a drilling 

program to supplement the geological data relevant to determining sequestration capacity of carbon dioxide in geological 

sequestration formations, including— (A) well log data; 

(B) core data; and 

(C) fluid sample data. 

(3) PARTNERSHIP WITH OTHER DRILLING PROGRAMS.—As part 

of the drilling program under paragraph (2), the Secretary 

shall enter, as appropriate, into partnerships with other entities to collect and integrate data from other drilling programs 

relevant to the sequestration of carbon dioxide in geological 

formations. 

(4) INCORPORATION INTO NATCARB.— (A) IN GENERAL.—On completion of the assessment, the 

Secretary of Energy and the Secretary of the Interior shall 

incorporate the results of the assessment using— (i) the NatCarb database, to the maximum extent 

practicable; or 

(ii) a new database developed by the Secretary of 

Energy, as the Secretary of Energy determines to be 

necessary. 

(B) RANKING.—The database shall include the data necessary to rank potential sequestration sites for capacity 

and risk, across the United States, within each State, by 

formation, and within each basin. 

(5) REPORT.—Not later than 180 days after the date on 

which the assessment is completed, the Secretary shall submit 

to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of 

Representatives a report describing the findings under the assessment. 

(6) PERIODIC UPDATES.—The national assessment developed 

under this section shall be updated periodically (including at 


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least once every 5 years) to support public and private sector 

decisionmaking. 

(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $30,000,000 for the period 

of fiscal years 2008 through 2012. 

SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE 

AND NITROUS OXIDE EMISSIONS FROM ECOSYSTEMS. 

(a) DEFINITIONS.—In this section: 

(1) ADAPTATION STRATEGY.—The term ‘‘adaptation strategy’’ means a land use and management strategy that can be 

used—

(A) to increase the sequestration capabilities of covered 

greenhouse gases of any ecosystem; or 

(B) to reduce the emissions of covered greenhouse gases 

from any ecosystem. 

(2) ASSESSMENT.—The term ‘‘assessment’’ means the national 

assessment authorized under subsection (b). 

(3) COVERED GREENHOUSE GAS.—The term ‘‘covered greenhouse gas’’ means carbon dioxide, nitrous oxide, and methane 

gas. 

(4) ECOSYSTEM.—The term ‘‘ecosystem’’ means any terrestrial, freshwater aquatic, or coastal ecosystem, including an estuary. 

(5) NATIVE PLANT SPECIES.—The term ‘‘native plant species’’ means any noninvasive, naturally occurring plant species within an ecosystem. 

(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of the Interior. 

(b) AUTHORIZATION OF ASSESSMENT.—Not later than 2 years after 

the date on which the final methodology is published under subsection (f)(3)(D), the Secretary shall complete a national assessment of—

(1) the quantity of carbon stored in and released from ecosystems, including from man-caused and natural fires; and 

(2) the annual flux of covered greenhouse gases in and out 

of ecosystems. 

(c) COMPONENTS.—In conducting the assessment under subsection (b), the Secretary shall— (1) determine the processes that control the flux of covered 

greenhouse gases in and out of each ecosystem; 

(2) estimate the potential for increasing carbon sequestration 

in natural and managed ecosystems through management activities or restoration activities in each ecosystem; 

(3) develop near-term and long-term adaptation strategies or 

mitigation strategies that can be employed— (A) to enhance the sequestration of carbon in each ecosystem; 

(B) to reduce emissions of covered greenhouse gases from 

ecosystems; and 

(C) to adapt to climate change; and 

(4) estimate the annual carbon sequestration capacity of ecosystems under a range of policies in support of management 

activities to optimize sequestration. 

(d) USE OF NATIVE PLANT SPECIES.—In developing restoration activities under subsection (c)(2) and management strategies and adVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00232 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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aptation strategies under subsection (c)(3), the Secretary shall emphasize the use of native plant species (including mixtures of many 

native plant species) for sequestering covered greenhouse gas in 

each ecosystem. 

(e) CONSULTATION.— (1) IN GENERAL.—In conducting the assessment under subsection (b) and developing the methodology under subsection 

(f), the Secretary shall consult with— (A) the Secretary of Energy; 

(B) the Secretary of Agriculture; 

(C) the Administrator of the Environmental Protection 

Agency; 

(D) the Secretary of Commerce, acting through the 

Under Secretary for Oceans and Atmosphere; and 

(E) the heads of other relevant agencies. 

(2) OCEAN AND COASTAL ECOSYSTEMS.—In carrying out this 

section with respect to ocean and coastal ecosystems (including 

estuaries), the Secretary shall work jointly with the Secretary 

of Commerce, acting through the Under Secretary for Oceans 

and Atmosphere. 

(f) METHODOLOGY.— (1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary shall develop a methodology 

for conducting the assessment. 

(2) REQUIREMENTS.—The methodology developed under paragraph (1)— (A) shall— (i) determine the method for measuring, monitoring, 

and quantifying covered greenhouse gas emissions and 

reductions; 

(ii) estimate the total capacity of each ecosystem to 

sequester carbon; and 

(iii) estimate the ability of each ecosystem to reduce 

emissions of covered greenhouse gases through management practices; and 

(B) may employ economic and other systems models, 

analyses, and estimates, to be developed in consultation 

with each of the individuals described in subsection (e). 

(3) EXTERNAL REVIEW AND PUBLICATION.—On completion of a 

proposed methodology, the Secretary shall— (A) publish the proposed methodology; 

(B) at least 60 days before the date on which the final 

methodology is published, solicit comments from— (i) the public; and 

(ii) heads of affected Federal and State agencies; 

(C) establish a panel to review the proposed methodology 

published under subparagraph (A) and any comments received under subparagraph (B), to be composed of members—(i) with expertise in the matters described in subsections (c) and (d); and 

(ii) that are, as appropriate, representatives of Federal agencies, institutions of higher education, nongovernmental organizations, State organizations, industry, and international organizations; and 


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(D) on completion of the review under subparagraph (C), 

publish in the Federal register the revised final methodology. 

(g) ESTIMATE; REVIEW.—The Secretary shall—

(1) based on the assessment, prescribe the data, information, 

and analysis needed to establish a scientifically sound estimate 

of the carbon sequestration capacity of relevant ecosystems; 

and 

(2) not later than 180 days after the date on which the assessment is completed, submit to the heads of applicable Federal agencies and the appropriate committees of Congress a report that describes the results of the assessment. 

(h) DATA AND REPORT AVAILABILITY.—On completion of the assessment, the Secretary shall incorporate the results of the assessment into a web-accessible database for public use. 

(i) AUTHORIZATION.—There is authorized to be appropriated to 

carry out this section $20,000,000 for the period of fiscal years 2008 

through 2012. 

SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY. 

Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) 

is amended—

(1) by redesignating subsection (d) as subsection (e); and 

(2) by inserting after subsection (c) the following: 

‘‘(d) RECORDS AND INVENTORY.—The Secretary of the Interior, 

acting through the Bureau of Land Management, shall maintain 

records on, and an inventory of, the quantity of carbon dioxide 

stored within Federal mineral leaseholds.’’. 

SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION 

ON PUBLIC LAND. 

(a) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Secretary of the Interior shall submit to the Committee on Natural Resources of the House of Representatives and 

the Committee on Energy and Natural Resources of the Senate a 

report on a recommended framework for managing geological carbon sequestration activities on public land. 

(b) CONTENTS.—The report required by subsection (a) shall include the following: 

(1) Recommended criteria for identifying candidate geological 

sequestration sites in each of the following types of geological 

settings: 

(A) Operating oil and gas fields. 

(B) Depleted oil and gas fields. 

(C) Unmineable coal seams. 

(D) Deep saline formations. 

(E) Deep geological systems that may be used as engineered reservoirs to extract economical quantities of heat 

from geothermal resources of low permeability or porosity. 

(F) Deep geological systems containing basalt formations. 

(G) Coalbeds being used for methane recovery. 

(2) A proposed regulatory framework for the leasing of public 

land or an interest in public land for the long-term geological 

sequestration of carbon dioxide, which includes an assessment 

of options to ensure that the United States receives fair market 


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value for the use of public land or an interest in public land 

for geological sequestration. 

(3) A proposed procedure for ensuring that any geological 

carbon sequestration activities on public land— (A) provide for public review and comment from all interested persons; and 

(B) protect the quality of natural and cultural resources 

of the public land overlaying a geological sequestration 

site. 

(4) A description of the status of Federal leasehold or Federal 

mineral estate liability issues related to the geological subsurface trespass of or caused by carbon dioxide stored in public 

land, including any relevant experience from enhanced oil recovery using carbon dioxide on public land. 

(5) Recommendations for additional legislation that may be 

required to ensure that public land management and leasing 

laws are adequate to accommodate the long-term geological sequestration of carbon dioxide. 

(6) An identification of the legal and regulatory issues specific to carbon dioxide sequestration on land in cases in which 

title to mineral resources is held by the United States but title 

to the surface estate is not held by the United States. 

(7)(A) An identification of the issues specific to the issuance 

of pipeline rights-of-way on public land under the Mineral 

Leasing Act (30 U.S.C. 181 et seq.) or the Federal Land Policy 

and Management Act of 1976 (43 U.S.C. 1701 et seq.) for natural or anthropogenic carbon dioxide. 

(B) Recommendations for additional legislation that may be 

required to clarify the appropriate framework for issuing 

rights-of-way for carbon dioxide pipelines on public land. 

(c) CONSULTATION WITH OTHER AGENCIES.—In preparing the report under this section, the Secretary of the Interior shall coordinate with—

(1) the Administrator of the Environmental Protection Agency; 

(2) the Secretary of Energy; and 

(3) the heads of other appropriate agencies. 

(d) COMPLIANCE WITH SAFE DRINKING WATER ACT.—The Secretary shall ensure that all recommendations developed under this 

section are in compliance with all Federal environmental laws, including the Safe Drinking Water Act (42 U.S.C. 300f et seq.) and 

regulations under that Act. 

TITLE VIII—IMPROVED MANAGEMENT OF ENERGY 

POLICY 

Subtitle A—Management Improvements 

SEC. 801. NATIONAL MEDIA CAMPAIGN. 

(a) IN GENERAL.—The Secretary, acting through the Assistant 

Secretary for Energy Efficiency and Renewable Energy (referred to 

in this section as the ‘‘Secretary’’), shall develop and conduct a national media campaign—

(1) to increase energy efficiency throughout the economy of 

the United States during the 10-year period beginning on the 

date of enactment of this Act; 


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(2) to promote the national security benefits associated with 

increased energy efficiency; and 

(3) to decrease oil consumption in the United States during 

the 10-year period beginning on the date of enactment of this 

Act. 

(b) CONTRACT WITH ENTITY.—The Secretary shall carry out subsection (a) directly or through—

(1) competitively bid contracts with 1 or more nationally recognized media firms for the development and distribution of 

monthly television, radio, and newspaper public service announcements; or 

(2) collective agreements with 1 or more nationally recognized institutes, businesses, or nonprofit organizations for the 

funding, development, and distribution of monthly television, 

radio, and newspaper public service announcements. 

(c) USE OF FUNDS.—

(1) IN GENERAL.—Amounts made available to carry out this 

section shall be used for—

(A) advertising costs, including—

(i) the purchase of media time and space; 

(ii) creative and talent costs; 

(iii) testing and evaluation of advertising; and 

(iv) evaluation of the effectiveness of the media campaign; and 

(B) administrative costs, including operational and management expenses. 

(2) LIMITATIONS.—In carrying out this section, the Secretary 

shall allocate not less than 85 percent of funds made available 

under subsection (e) for each fiscal year for the advertising 

functions specified under paragraph (1)(A). 

(d) REPORTS.—The Secretary shall annually submit to Congress 

a report that describes—

(1) the strategy of the national media campaign and whether 

specific objectives of the campaign were accomplished, including—

(A) determinations concerning the rate of change of energy consumption, in both absolute and per capita terms; 

and 

(B) an evaluation that enables consideration of whether 

the media campaign contributed to reduction of energy 

consumption; 

(2) steps taken to ensure that the national media campaign 

operates in an effective and efficient manner consistent with 

the overall strategy and focus of the campaign; 

(3) plans to purchase advertising time and space; 

(4) policies and practices implemented to ensure that Federal 

funds are used responsibly to purchase advertising time and 

space and eliminate the potential for waste, fraud, and abuse; 

and 

(5) all contracts or cooperative agreements entered into with 

a corporation, partnership, or individual working on behalf of 

the national media campaign. 

(e) AUTHORIZATION OF APPROPRIATIONS.—


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(1) IN GENERAL.—There is authorized to be appropriated to 

carry out this section $5,000,000 for each of fiscal years 2008 

through 2012. 

(2) DECREASED OIL CONSUMPTION.—The Secretary shall use 

not less than 50 percent of the amount that is made available 

under this section for each fiscal year to develop and conduct 

a national media campaign to decrease oil consumption in the 

United States over the next decade. 

SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION. 

Section 106 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 

720d) is amended by adding at the end the following: 

‘‘(h) ADMINISTRATION.—

‘‘(1) PERSONNEL APPOINTMENTS.—

‘‘(A) IN GENERAL.—The Federal Coordinator may appoint 

and terminate such personnel as the Federal Coordinator 

determines to be appropriate. 

‘‘(B) AUTHORITY OF FEDERAL COORDINATOR.—Personnel 

appointed by the Federal Coordinator under subparagraph 

(A) shall be appointed without regard to the provisions of 

title 5, United States Code, governing appointments in the 

competitive service. 

‘‘(2) COMPENSATION.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), personnel appointed by the Federal Coordinator under paragraph (1)(A) shall be paid without regard to the provisions 

of chapter 51 and subchapter III of chapter 53 of title 5, 

United States Code (relating to classification and General 

Schedule pay rates). 

‘‘(B) MAXIMUM LEVEL OF COMPENSATION.—The rate of 

pay for personnel appointed by the Federal Coordinator 

under paragraph (1)(A) shall not exceed the maximum 

level of rate payable for level III of the Executive Schedule 

(5 U.S.C. 5314). 

‘‘(C) ALLOWANCES.—Section 5941 of title 5, United States 

Code, shall apply to personnel appointed by the Federal 

Coordinator under paragraph (1)(A). 

‘‘(3) TEMPORARY SERVICES.—

‘‘(A) IN GENERAL.—The Federal Coordinator may procure 

temporary and intermittent services in accordance with 

section 3109(b) of title 5, United States Code. 

‘‘(B) MAXIMUM LEVEL OF COMPENSATION.—The level of 

compensation of an individual employed on a temporary or 

intermittent basis under subparagraph (A) shall not exceed the maximum level of rate payable for level III of the 

Executive Schedule (5 U.S.C. 5314). 

‘‘(4) FEES, CHARGES, AND COMMISSIONS.—

‘‘(A) IN GENERAL.—With respect to the duties of the Federal Coordinator, as described in this Act, the Federal Coordinator shall have similar authority to establish, change, 

and abolish reasonable filing and service fees, charges, and 

commissions, require deposits of payments, and provide refunds as provided to the Secretary of the Interior in section 304 of the Federal Land Policy and Management Act 

of 1976 (43 U.S.C. 1734). 


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‘‘(B) AUTHORITY OF SECRETARY OF THE INTERIOR.—Subparagraph (A) shall not affect the authority of the Secretary of the Interior to establish, change, and abolish reasonable filing and service fees, charges, and commissions, 

require deposits of payments, and provide refunds under 

section 304 of the Federal Land Policy and Management 

Act of 1976 (43 U.S.C. 1734). 

‘‘(C) USE OF FUNDS.—The Federal Coordinator is authorized to use, without further appropriation, amounts collected under subparagraph (A) to carry out this section.’’. 

SEC. 803. RENEWABLE ENERGY DEPLOYMENT. 

(a) DEFINITIONS.—In this section: 

(1) ALASKA SMALL HYDROELECTRIC POWER.—The term ‘‘Alaska small hydroelectric power’’ means power that—

(A) is generated—

(i) in the State of Alaska; 

(ii) without the use of a dam or impoundment of 

water; and 

(iii) through the use of—

(I) a lake tap (but not a perched alpine lake); or 

(II) a run-of-river screened at the point of diversion; and 

(B) has a nameplate capacity rating of a wattage that is 

not more than 15 megawatts. 

(2) ELIGIBLE APPLICANT.—The term ‘‘eligible applicant’’

means any—

(A) governmental entity; 

(B) private utility; 

(C) public utility; 

(D) municipal utility; 

(E) cooperative utility; 

(F) Indian tribes; and 

(G) Regional Corporation (as defined in section 3 of the 

Alaska Native Claims Settlement Act (43 U.S.C. 1602)). 

(3) OCEAN ENERGY.—

(A) INCLUSIONS.—The term ‘‘ocean energy’’ includes current, wave, and tidal energy. 

(B) EXCLUSION.—The term ‘‘ocean energy’’ excludes thermal energy. 

(4) RENEWABLE ENERGY PROJECT.—The term ‘‘renewable energy project’’ means a project—

(A) for the commercial generation of electricity; and 

(B) that generates electricity from—

(i) solar, wind, or geothermal energy or ocean energy; 

(ii) biomass (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))); 

(iii) landfill gas; or 

(iv) Alaska small hydroelectric power. 

(b) RENEWABLE ENERGY CONSTRUCTION GRANTS.—

(1) IN GENERAL.—The Secretary shall use amounts appropriated under this section to make grants for use in carrying 

out renewable energy projects. 


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(2) CRITERIA.—Not later than 180 days after the date of enactment of this Act, the Secretary shall set forth criteria for 

use in awarding grants under this section. 

(3) APPLICATION.—To receive a grant from the Secretary 

under paragraph (1), an eligible applicant shall submit to the 

Secretary an application at such time, in such manner, and 

containing such information as the Secretary may require, including a written assurance that—

(A) all laborers and mechanics employed by contractors 

or subcontractors during construction, alteration, or repair 

that is financed, in whole or in part, by a grant under this 

section shall be paid wages at rates not less than those 

prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40, United States 

Code; and 

(B) the Secretary of Labor shall, with respect to the 

labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan 

Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of 

title 40, United States Code. 

(4) NON-FEDERAL SHARE.—Each eligible applicant that receives a grant under this subsection shall contribute to the 

total cost of the renewable energy project constructed by the eligible applicant an amount not less than 50 percent of the total 

cost of the project. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Fund such sums as are necessary to carry 

out this section. 

SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES. 

(a) DEFINITIONS.—In this section: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Energy Information Administration. 

(2) PLANNED REFINERY OUTAGE.—

(A) IN GENERAL.—The term ‘‘planned refinery outage’’

means a removal, scheduled before the date on which the 

removal occurs, of a refinery, or any unit of a refinery, 

from service for maintenance, repair, or modification. 

(B) EXCLUSION.—The term ‘‘planned refinery outage’’

does not include any necessary and unplanned removal of 

a refinery, or any unit of a refinery, from service as a result of a component failure, safety hazard, emergency, or 

action reasonably anticipated to be necessary to prevent 

such events. 

(3) REFINED PETROLEUM PRODUCT.—The term ‘‘refined petroleum product’’ means any gasoline, diesel fuel, fuel oil, lubricating oil, liquid petroleum gas, or other petroleum distillate 

that is produced through the refining or processing of crude oil 

or an oil derived from tar sands, shale, or coal. 

(4) REFINERY.—The term ‘‘refinery’’ means a facility used in 

the production of a refined petroleum product through distillation, cracking, or any other process. 

(b) REVIEW AND ANALYSIS OF AVAILABLE INFORMATION.—The Administrator shall, on an ongoing basis—


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(1) review information on refinery outages that is available 

from commercial reporting services; 

(2) analyze that information to determine whether the scheduling of a refinery outage may nationally or regionally substantially affect the price or supply of any refined petroleum product by—

(A) decreasing the production of the refined petroleum 

product; and 

(B) causing or contributing to a retail or wholesale supply shortage or disruption; 

(3) not less frequently than twice each year, submit to the 

Secretary a report describing the results of the review and 

analysis under paragraphs (1) and (2); and 

(4) specifically alert the Secretary of any refinery outage that 

the Administrator determines may nationally or regionally 

substantially affect the price or supply of a refined petroleum 

product. 

(c) ACTION BY SECRETARY.—On a determination by the Secretary, 

based on a report or alert under paragraph (3) or (4) of subsection 

(b), that a refinery outage may affect the price or supply of a refined petroleum product, the Secretary shall make available to refinery operators information on planned refinery outages to encourage reductions of the quantity of refinery capacity that is out of 

service at any time. 

(d) LIMITATION.—Nothing in this section shall alter any existing 

legal obligation or responsibility of a refinery operator, or create 

any legal right of action, nor shall this section authorize the Secretary—

(1) to prohibit a refinery operator from conducting a planned 

refinery outage; or 

(2) to require a refinery operator to continue to operate a refinery. 

SEC. 805. ASSESSMENT OF RESOURCES. 

(a) 5-YEAR PLAN.— (1) ESTABLISHMENT.—The Administrator of the Energy Information Administration (referred to in this section as the ‘‘Administrator’’) shall establish a 5-year plan to enhance the quality and scope of the data collection necessary to ensure the 

scope, accuracy, and timeliness of the information needed for 

efficient functioning of energy markets and related financial 

operations. 

(2) REQUIREMENT.—In establishing the plan under paragraph (1), the Administrator shall pay particular attention to—

(A) data series terminated because of budget constraints; 

(B) data on demand response; 

(C) timely data series of State-level information; 

(D) improvements in the area of oil and gas data; 

(E) improvements in data on solid byproducts from coalbased energy-producing facilities; and 

(F) the ability to meet applicable deadlines under Federal law (including regulations) to provide data required by 

Congress. 

(b) SUBMISSION TO CONGRESS.—The Administrator shall submit 

to Congress the plan established under subsection (a), including a 

description of any improvements needed to enhance the ability of 


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the Administrator to collect and process energy information in a 

manner consistent with the needs of energy markets. 

(c) GUIDELINES.—

(1) IN GENERAL.—The Administrator shall—

(A) establish guidelines to ensure the quality, comparability, and scope of State energy data, including data 

on energy production and consumption by product and sector and renewable and alternative sources, required to provide a comprehensive, accurate energy profile at the State 

level; 

(B) share company-level data collected at the State level 

with each State involved, in a manner consistent with the 

legal authorities, confidentiality protections, and stated 

uses in effect at the time the data were collected, subject 

to the condition that the State shall agree to reasonable 

requirements for use of the data, as the Administrator 

may require; 

(C) assess any existing gaps in data obtained and compiled by the Energy Information Administration; and 

(D) evaluate the most cost-effective ways to address any 

data quality and quantity issues in conjunction with State 

officials. 

(2) CONSULTATION.—The Administrator shall consult with 

State officials and the Federal Energy Regulatory Commission 

on a regular basis in—

(A) establishing guidelines and determining the scope of 

State-level data under paragraph (1); and 

(B) exploring ways to address data needs and serve data 

uses. 

(d) ASSESSMENT OF STATE DATA NEEDS.—Not later than 1 year 

after the date of enactment of this Act, the Administrator shall 

submit to Congress an assessment of State-level data needs, including a plan to address the needs. 

(e) AUTHORIZATION OF APPROPRIATIONS.—In addition to any other 

amounts made available to the Administrator, there are authorized 

to be appropriated to the Administrator to carry out this section—

(1) $10,000,000 for fiscal year 2008; 

(2) $10,000,000 for fiscal year 2009; 

(3) $10,000,000 for fiscal year 2010; 

(4) $15,000,000 for fiscal year 2011; 

(5) $20,000,000 for fiscal year 2012; and 

(6) such sums as are necessary for subsequent fiscal years. 

SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE RESOURCES TO GENERATE ENERGY. 

(a) FINDINGS.—Congress finds that—

(1) the United States has a quantity of renewable energy resources that is sufficient to supply a significant portion of the 

energy needs of the United States; 

(2) the agricultural, forestry, and working land of the United 

States can help ensure a sustainable domestic energy system; 

(3) accelerated development and use of renewable energy 

technologies provide numerous benefits to the United States, 

including improved national security, improved balance of payments, healthier rural economies, improved environmental 


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quality, and abundant, reliable, and affordable energy for all 

citizens of the United States; 

(4) the production of transportation fuels from renewable energy would help the United States meet rapidly growing domestic and global energy demands, reduce the dependence of 

the United States on energy imported from volatile regions of 

the world that are politically unstable, stabilize the cost and 

availability of energy, and safeguard the economy and security 

of the United States; 

(5) increased energy production from domestic renewable resources would attract substantial new investments in energy 

infrastructure, create economic growth, develop new jobs for 

the citizens of the United States, and increase the income for 

farm, ranch, and forestry jobs in the rural regions of the 

United States; 

(6) increased use of renewable energy is practical and can be 

cost effective with the implementation of supportive policies 

and proper incentives to stimulate markets and infrastructure; 

and 

(7) public policies aimed at enhancing renewable energy production and accelerating technological improvements will further reduce energy costs over time and increase market demand. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that it is 

the goal of the United States that, not later than January 1, 2025, 

the agricultural, forestry, and working land of the United States 

should—

(1) provide from renewable resources not less than 25 percent of the total energy consumed in the United States; and 

(2) continue to produce safe, abundant, and affordable food, 

feed, and fiber. 

SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, 

AND PRIORITY ACTIVITIES. 

(a) IN GENERAL.—Not later than January 1, 2012, the Secretary 

of the Interior, acting through the Director of the United States Geological Survey, shall—

(1) complete a comprehensive nationwide geothermal resource assessment that examines the full range of geothermal 

resources in the United States; and 

(2) submit to the the Committee on Natural Resources of the 

House of Representatives and the Committee on Energy and 

Natural Resources of the Senate a report describing the results 

of the assessment. 

(b) PERIODIC UPDATES.—At least once every 10 years, the Secretary shall update the national assessment required under this 

section to support public and private sector decisionmaking. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary of the Interior to carry out this 

section—

(1) $15,000,000 for each of fiscal years 2008 through 2012; 

and 

(2) such sums as are necessary for each of fiscal years 2013 

through 2022. 


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Subtitle B—Prohibitions on Market Manipulation and False 

Information 

SEC. 811. PROHIBITION ON MARKET MANIPULATION. 

It is unlawful for any person, directly or indirectly, to use or employ, in connection with the purchase or sale of crude oil gasoline 

or petroleum distillates at wholesale, any manipulative or deceptive device or contrivance, in contravention of such rules and regulations as the Federal Trade Commission may prescribe as necessary or appropriate in the public interest or for the protection of 

United States citizens. 

SEC. 812. PROHIBITION ON FALSE INFORMATION. 

It is unlawful for any person to report information related to the 

wholesale price of crude oil gasoline or petroleum distillates to a 

Federal department or agency if— (1) the person knew, or reasonably should have known, the 

information to be false or misleading; 

(2) the information was required by law to be reported; and 

(3) the person intended the false or misleading data to affect 

data compiled by the department or agency for statistical or 

analytical purposes with respect to the market for crude oil, 

gasoline, or petroleum distillates. 

SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION. 

(a) ENFORCEMENT.—This subtitle shall be enforced by the Federal Trade Commission in the same manner, by the same means, 

and with the same jurisdiction as though all applicable terms of 

the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this subtitle. 

(b) VIOLATION IS TREATED AS UNFAIR OR DECEPTIVE ACT OR

PRACTICE.—The violation of any provision of this subtitle shall be 

treated as an unfair or deceptive act or practice proscribed under 

a rule issued under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). 

SEC. 814. PENALTIES. 

(a) CIVIL PENALTY.—In addition to any penalty applicable under 

the Federal Trade Commission Act (15 U.S.C. 41 et seq.), any supplier that violates section 811 or 812 shall be punishable by a civil 

penalty of not more than $1,000,000. 

(b) METHOD.—The penalties provided by subsection (a) shall be 

obtained in the same manner as civil penalties imposed under section 5 of the Federal Trade Commission Act (15 U.S.C. 45). 

(c) MULTIPLE OFFENSES; MITIGATING FACTORS.—In assessing the 

penalty provided by subsection (a)—

(1) each day of a continuing violation shall be considered a 

separate violation; and 

(2) the court shall take into consideration, among other factors—

(A) the seriousness of the violation; and 

(B) the efforts of the person committing the violation to 

remedy the harm caused by the violation in a timely manner. 

SEC. 815. EFFECT ON OTHER LAWS. 

(a) OTHER AUTHORITY OF THE COMMISSION.—Nothing in this subtitle limits or affects the authority of the Federal Trade CommisVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00243 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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sion to bring an enforcement action or take any other measure 

under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or 

any other provision of law. 

(b) ANTITRUST LAW.—Nothing in this subtitle shall be construed 

to modify, impair, or supersede the operation of any of the antitrust laws. For purposes of this subsection, the term ‘‘antitrust 

laws’’ shall have the meaning given it in subsection (a) of the first 

section of the Clayton Act (15 U.S.C. 12), except that it includes 

section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to 

the extent that such section 5 applies to unfair methods of competition. 

(c) STATE LAW.—Nothing in this subtitle preempts any State law. 

TITLE IX—INTERNATIONAL ENERGY PROGRAMS 

SEC. 901. DEFINITIONS. 

In this title: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means—

(A) the Committee on Foreign Affairs and the Committee on Energy and Commerce of the House of Representatives; and 

(B) the Committee on Foreign Relations, the Committee 

on Energy and Natural Resources, the Committee on Environment and Public Works of the Senate, and the Committee on Commerce, Science, and Transportation. 

(2) CLEAN AND EFFICIENT ENERGY TECHNOLOGY.—The term ‘‘clean and efficient energy technology’’ means an energy supply or end-use technology that, compared to a similar technology already in widespread commercial use in a recipient 

country, will— (A) reduce emissions of greenhouse gases; or 

(B)(i) increase efficiency of energy production; or 

(ii) decrease intensity of energy usage. 

(3) GREENHOUSE GAS.—The term ‘‘greenhouse gas’’ means—

(A) carbon dioxide; 

(B) methane; 

(C) nitrous oxide; 

(D) hydrofluorocarbons; 

(E) perfluorocarbons; or 

(F) sulfur hexafluoride. 

Subtitle A—Assistance to Promote Clean and Efficient 

Energy Technologies in Foreign Countries 

SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES. 

(a) ASSISTANCE AUTHORIZED.—The Administrator of the United 

States Agency for International Development shall support policies 

and programs in developing countries that promote clean and efficient energy technologies—

(1) to produce the necessary market conditions for the private sector delivery of energy and environmental management 

services; 

(2) to create an environment that is conducive to accepting 

clean and efficient energy technologies that support the overall 

purpose of reducing greenhouse gas emissions, including—


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(A) improving policy, legal, and regulatory frameworks; 

(B) increasing institutional abilities to provide energy 

and environmental management services; and 

(C) increasing public awareness and participation in the 

decision-making of delivering energy and environmental 

management services; and 

(3) to promote the use of American-made clean and efficient 

energy technologies, products, and energy and environmental 

management services. 

(b) REPORT.—The Administrator of the United States Agency for 

International Development shall submit to the appropriate congressional committees an annual report on the implementation of this 

section for each of the fiscal years 2008 through 2012. 

(c) AUTHORIZATION OF APPROPRIATIONS.—To carry out this section, there are authorized to be appropriated to the Administrator 

of the United States Agency for International Development 

$200,000,000 for each of the fiscal years 2008 through 2012. 

SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR 

INDIA, CHINA, AND OTHER COUNTRIES. 

(a) ASSISTANCE AUTHORIZED.—The Secretary of Commerce shall 

direct the United States and Foreign Commercial Service to expand 

or create a corps of the Foreign Commercial Service officers to promote United States exports in clean and efficient energy technologies and build the capacity of government officials in India, 

China, and any other country the Secretary of Commerce determines appropriate, to become more familiar with the available 

technologies— (1) by assigning or training Foreign Commercial Service 

attache ́s, who have expertise in clean and efficient energy technologies from the United States, to embark on business development and outreach efforts to such countries; and 

(2) by deploying the attache ́s described in paragraph (1) to 

educate provincial, state, and local government officials in such 

countries on the variety of United States-based technologies in 

clean and efficient energy technologies for the purposes of promoting United States exports and reducing global greenhouse 

gas emissions. 

(b) REPORT.—The Secretary of Commerce shall submit to the appropriate congressional committees an annual report on the implementation of this section for each of the fiscal years 2008 through 

2012. 

(c) AUTHORIZATION OF APPROPRIATIONS.—To carry out this section, there are authorized to be appropriated to the Secretary of 

Commerce such sums as may be necessary for each of the fiscal 

years 2008 through 2012. 

SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE 

SECTOR TRADE AND INVESTMENT. 

(a) ASSISTANCE AUTHORIZED.—The Secretary of Commerce shall 

direct the International Trade Administration to expand or create 

trade missions to and from the United States to encourage private 

sector trade and investment in clean and efficient energy technologies—

(1) by organizing and facilitating trade missions to foreign 

countries and by matching United States private sector companies with opportunities in foreign markets so that clean and efVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00245 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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ficient energy technologies can help to combat increases in 

global greenhouse gas emissions; and 

(2) by creating reverse trade missions in which the Department of Commerce facilitates the meeting of foreign private 

and public sector organizations with private sector companies 

in the United States for the purpose of showcasing clean and 

efficient energy technologies in use or in development that 

could be exported to other countries. 

(b) REPORT.—The Secretary of Commerce shall submit to the appropriate congressional committees an annual report on the implementation of this section for each of the fiscal years 2008 through 

2012. 

(c) AUTHORIZATION OF APPROPRIATIONS.—To carry out this section, there are authorized to be appropriated to the Secretary of 

Commerce such sums as may be necessary for each of the fiscal 

years 2008 through 2012. 

SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION. 

(a) SENSE OF CONGRESS.—It is the sense of Congress that the 

Overseas Private Investment Corporation should promote greater 

investment in clean and efficient energy technologies by— (1) proactively reaching out to United States companies that 

are interested in investing in clean and efficient energy technologies in countries that are significant contributors to global 

greenhouse gas emissions; 

(2) giving preferential treatment to the evaluation and 

awarding of projects that involve the investment or utilization 

of clean and efficient energy technologies; and 

(3) providing greater flexibility in supporting projects that 

involve the investment or utilization of clean and efficient energy technologies, including financing, insurance, and other assistance. 

(b) REPORT.—The Overseas Private Investment Corporation shall 

include in its annual report required under section 240A of the Foreign Assistance Act of 1961 (22 U.S.C. 2200a)— (1) a description of the activities carried out to implement 

this section; or 

(2) if the Corporation did not carry out any activities to implement this section, an explanation of the reasons therefor. 

SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT 

AGENCY. 

(a) ASSISTANCE AUTHORIZED.—The Director of the Trade and Development Agency shall establish or support policies that—

(1) proactively seek opportunities to fund projects that involve the utilization of clean and efficient energy technologies, 

including in trade capacity building and capital investment 

projects; 

(2) where appropriate, advance the utilization of clean and 

efficient energy technologies, particularly to countries that 

have the potential for significant reduction in greenhouse gas 

emissions; and 

(3) recruit and retain individuals with appropriate expertise 

or experience in clean, renewable, and efficient energy technologies to identify and evaluate opportunities for projects that 

involve clean and efficient energy technologies and services. 


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(b) REPORT.—The President shall include in the annual report on 

the activities of the Trade and Development Agency required under 

section 661(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 

2421(d)) a description of the activities carried out to implement this 

section. 

SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT 

ENERGY TECHNOLOGIES AND INVESTMENT IN GLOBAL 

ENERGY MARKETS. 

(a) TASK FORCE.— (1) ESTABLISHMENT.—Not later than 90 days after the date 

of the enactment of this Act, the President shall establish a 

Task Force on International Cooperation for Clean and Efficient Energy Technologies (in this section referred to as the 

‘‘Task Force’’). 

(2) COMPOSITION.—The Task Force shall be composed of representatives, appointed by the head of the respective Federal 

department or agency, of— (A) the Council on Environmental Quality; 

(B) the Department of Energy; 

(C) the Department of Commerce; 

(D) the Department of the Treasury; 

(E) the Department of State; 

(F) the Environmental Protection Agency; 

(G) the United States Agency for International Development; 

(H) the Export-Import Bank of the United States; 

(I) the Overseas Private Investment Corporation: 

(J) the Trade and Development Agency; 

(K) the Small Business Administration; 

(L) the Office of the United States Trade Representative; 

and 

(M) other Federal departments and agencies, as determined by the President. 

(3) CHAIRPERSON.—The President shall designate a Chairperson or Co-Chairpersons of the Task Force. 

(4) DUTIES.—The Task Force—

(A) shall develop and assist in the implementation of the 

strategy required under subsection (c); and 

(B)(i) shall analyze technology, policy, and market opportunities for the development, demonstration, and deployment of clean and efficient energy technologies on an international basis; and 

(ii) shall examine relevant trade, tax, finance, international, and other policy issues to assess which policies, 

in the United States and in developing countries, would 

help open markets and improve the export of clean and efficient energy technologies from the United States. 

(5) TERMINATION.—The Task Force, including any working 

group established by the Task Force pursuant to subsection (b), 

shall terminate 12 years after the date of the enactment of this 

Act. 

(b) WORKING GROUPS.—

(1) ESTABLISHMENT.—The Task Force—

(A) shall establish an Interagency Working Group on the 

Export of Clean and Efficient Energy Technologies (in this 


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section referred to as the ‘‘Interagency Working Group’’); 

and 

(B) may establish other working groups as may be necessary to carry out this section. 

(2) COMPOSITION.—The Interagency Working Group shall be 

composed of—

(A) the Secretary of Energy, the Secretary of Commerce, 

and the Secretary of State, who shall serve as Co-Chairpersons of the Interagency Working Group; and 

(B) other members, as determined by the Chairperson or 

Co-Chairpersons of the Task Force. 

(3) DUTIES.—The Interagency Working Group shall coordinate the resources and relevant programs of the Department 

of Energy, the Department of Commerce, the Department of 

State, and other relevant Federal departments and agencies to 

support the export of clean and efficient energy technologies 

developed or demonstrated in the United States to other countries and the deployment of such clean and efficient energy 

technologies in such other countries. 

(4) INTERAGENCY CENTER.—The Interagency Working 

Group—

(A) shall establish an Interagency Center on the Export 

of Clean and Efficient Energy Technologies (in this section 

referred to as the ‘‘Interagency Center’’) to assist the Interagency Working Group in carrying out its duties required 

under paragraph (3); and 

(B) shall locate the Interagency Center at a site agreed 

upon by the Co-Chairpersons of the Interagency Working 

Group, with the approval of Chairperson or Co-Chairpersons of the Task Force. 

(c) STRATEGY.—

(1) IN GENERAL.—Not later than 1 year after the date of the 

enactment of this Act, the Task Force shall develop and submit 

to the President and the appropriate congressional committees 

a strategy to—

(A) support the development and implementation of programs, policies, and initiatives in developing countries to 

promote the adoption and deployment of clean and efficient energy technologies, with an emphasis on those developing countries that are expected to experience the 

most significant growth in energy production and use over 

the next 20 years; 

(B) open and expand clean and efficient energy technology markets and facilitate the export of clean and efficient energy technologies to developing countries, in a 

manner consistent with United States obligations as member of the World Trade Organization; 

(C) integrate into the foreign policy objectives of the 

United States the promotion of—

(i) the deployment of clean and efficient energy technologies and the reduction of greenhouse gas emissions in developing countries; and 

(ii) the export of clean and efficient energy technologies; and 


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(D) develop financial mechanisms and instruments, including securities that mitigate the political and foreign 

exchange risks of uses that are consistent with the foreign 

policy objectives of the United States by combining the private sector market and government enhancements, that—

(i) are cost-effective; and 

(ii) facilitate private capital investment in clean and 

efficient energy technology projects in developing countries. 

(2) UPDATES.—Not later than 3 years after the date of submission of the strategy under paragraph (1), and every 3 years 

thereafter, the Task Force shall update the strategy in accordance with the requirements of paragraph (1). 

(d) REPORT.—

(1) IN GENERAL.—Not later than 3 years after the date of 

submission of the strategy under subsection (c)(1), and every 3 

years thereafter, the President shall transmit to the appropriate congressional committees a report on the implementation of this section for the prior 3-year period. 

(2) MATTERS TO BE INCLUDED.—The report required under 

paragraph (1) shall include the following: 

(A) The update of the strategy required under subsection 

(c)(2) and a description of the actions taken by the Task 

Force to assist in the implementation of the strategy. 

(B) A description of actions taken by the Task Force to 

carry out the duties required under subsection (a)(4)(B). 

(C) A description of assistance provided under this section. 

(D) The results of programs, projects, and activities carried out under this section. 

(E) A description of priorities for promoting the diffusion 

and adoption of clean and efficient energy technologies and 

strategies in developing countries, taking into account economic and security interests of the United States and opportunities for the export of technology of the United 

States. 

(F) Recommendations to the heads of appropriate Federal departments and agencies on methods to streamline 

Federal programs and policies to improve the role of such 

Federal departments and agencies in the development, 

demonstration, and deployment of clean and efficient energy technologies on an international basis. 

(G) Strategies to integrate representatives of the private 

sector and other interested groups on the export and deployment of clean and efficient energy technologies. 

(H) A description of programs to disseminate information to the private sector and the public on clean and efficient energy technologies and opportunities to transfer 

such clean and efficient energy technologies. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2020. 

SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION. 

(a) FINDINGS.—Congress finds that—


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(1) it is in the highest national security interests of the 

United States to develop renewable energy sources; 

(2) the State of Israel is a steadfast ally of the United States; 

(3) the special relationship between the United States and 

Israel is manifested in a variety of cooperative scientific research and development programs, such as—

(A) the United States-Israel Binational Science Foundation; and 

(B) the United States-Israel Binational Industrial Research and Development Foundation; 

(4) those programs have made possible many scientific, technological, and commercial breakthroughs in the fields of life 

sciences, medicine, bioengineering, agriculture, biotechnology, 

communications, and others; 

(5) on February 1, 1996, the Secretary of Energy (referred to 

in this section as the ‘‘Secretary’’) and the Israeli Minister of 

Energy and Infrastructure signed an agreement to establish a 

framework for collaboration between the United States and 

Israel in energy research and development activities; 

(6) Israeli scientists and engineers are at the forefront of research and development in the field of renewable energy 

sources; and 

(7) enhanced cooperation between the United States and 

Israel for the purpose of research and development of renewable energy sources would be in the national interests of both 

countries. 

(b) GRANT PROGRAM.—

(1) ESTABLISHMENT.—In implementing the agreement entitled the ‘‘Agreement between the Department of Energy of the 

United States of America and the Ministry of Energy and Infrastructure of Israel Concerning Energy Cooperation’’, dated 

February 1, 1996, the Secretary shall establish a grant program in accordance with the requirements of sections 988 and 

989 of the Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) 

to support research, development, and commercialization of renewable energy or energy efficiency. 

(2) TYPES OF ENERGY.—In carrying out paragraph (1), the 

Secretary may make grants to promote—

(A) solar energy; 

(B) biomass energy; 

(C) energy efficiency; 

(D) wind energy; 

(E) geothermal energy; 

(F) wave and tidal energy; and 

(G) advanced battery technology. 

(3) ELIGIBLE APPLICANTS.—An applicant shall be eligible to 

receive a grant under this subsection if the project of the applicant—

(A) addresses a requirement in the area of improved energy efficiency or renewable energy sources, as determined 

by the Secretary; and 

(B) is a joint venture between—

(i)(I) a for-profit business entity, academic institution, National Laboratory (as defined in section 2 of 


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the Energy Policy Act of 2005 (42 U.S.C. 15801)), or 

nonprofit entity in the United States; and 

(II) a for-profit business entity, academic institution, 

or nonprofit entity in Israel; or 

(ii)(I) the Federal Government; and 

(II) the Government of Israel. 

(4) APPLICATIONS.—To be eligible to receive a grant under 

this subsection, an applicant shall submit to the Secretary an 

application for the grant in accordance with procedures established by the Secretary, in consultation with the advisory 

board established under paragraph (5). 

(5) ADVISORY BOARD.—

(A) ESTABLISHMENT.—The Secretary shall establish an 

advisory board—

(i) to monitor the method by which grants are 

awarded under this subsection; and 

(ii) to provide to the Secretary periodic performance 

reviews of actions taken to carry out this subsection. 

(B) COMPOSITION.—The advisory board established 

under subparagraph (A) shall be composed of 3 members, 

to be appointed by the Secretary, of whom—

(i) 1 shall be a representative of the Federal Government; 

(ii) 1 shall be selected from a list of nominees provided by the United States-Israel Binational Science 

Foundation; and 

(iii) 1 shall be selected from a list of nominees provided by the United States-Israel Binational Industrial 

Research and Development Foundation. 

(6) CONTRIBUTED FUNDS.—Notwithstanding section 3302 of 

title 31, United States Code, the Secretary may accept, retain, 

and use funds contributed by any person, government entity, 

or organization for purposes of carrying out this subsection—

(A) without further appropriation; and 

(B) without fiscal year limitation. 

(7) REPORT.—Not later than 180 days after the date of completion of a project for which a grant is provided under this 

subsection, the grant recipient shall submit to the Secretary a 

report that contains—

(A) a description of the method by which the recipient 

used the grant funds; and 

(B) an evaluation of the level of success of each project 

funded by the grant. 

(8) CLASSIFICATION.—Grants shall be awarded under this 

subsection only for projects that are considered to be unclassified by both the United States and Israel. 

(c) TERMINATION.—The grant program and the advisory committee established under this section terminate on the date that is 

7 years after the date of enactment of this Act. 

(d) AUTHORIZATION OF APPROPRIATIONS.—The Secretary shall use 

amounts authorized to be appropriated under section 931 of the 

Energy Policy Act of 2005 (42 U.S.C. 16231) to carry out this section. 


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Subtitle B—International Clean Energy Foundation 

SEC. 921. DEFINITIONS. 

In this subtitle: 

(1) BOARD.—The term ‘‘Board’’ means the Board of Directors 

of the Foundation established pursuant to section 922(c). 

(2) CHIEF EXECUTIVE OFFICER.—The term ‘‘Chief Executive 

Officer’’ means the chief executive officer of the Foundation appointed pursuant to section 922(b). 

(3) FOUNDATION.—The term ‘‘Foundation’’ means the International Clean Energy Foundation established by section 

922(a). 

SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION. 

(a) ESTABLISHMENT.— (1) IN GENERAL.—There is established in the executive 

branch a foundation to be known as the ‘‘International Clean 

Energy Foundation’’ that shall be responsible for carrying out 

the provisions of this subtitle. The Foundation shall be a government corporation, as defined in section 103 of title 5, 

United States Code. 

(2) BOARD OF DIRECTORS.—The Foundation shall be governed 

by a Board of Directors in accordance with subsection (c). 

(3) INTENT OF CONGRESS.—It is the intent of Congress, in establishing the structure of the Foundation set forth in this subsection, to create an entity that serves the long-term foreign 

policy and energy security goals of reducing global greenhouse 

gas emissions. 

(b) CHIEF EXECUTIVE OFFICER.— (1) IN GENERAL.—There shall be in the Foundation a Chief 

Executive Officer who shall be responsible for the management 

of the Foundation. 

(2) APPOINTMENT.—The Chief Executive Officer shall be appointed by the Board, with the advice and consent of the Senate, and shall be a recognized leader in clean and efficient energy technologies and climate change and shall have experience in energy security, business, or foreign policy, chosen on 

the basis of a rigorous search. 

(3) RELATIONSHIP TO BOARD.—The Chief Executive Officer 

shall report to, and be under the direct authority of, the Board. 

(4) COMPENSATION AND RANK.—

(A) IN GENERAL.—The Chief Executive Officer shall be 

compensated at the rate provided for level III of the Executive Schedule under section 5314 of title 5, United States 

Code. 

(B) AMENDMENT.—Section 5314 of title 5, United States 

Code, is amended by adding at the end the following: 

‘‘Chief Executive Officer, International Clean Energy Foundation.’’. 

(C) AUTHORITIES AND DUTIES.—The Chief Executive Officer shall be responsible for the management of the Foundation and shall exercise the powers and discharge the duties of the Foundation. 

(D) AUTHORITY TO APPOINT OFFICERS.—In consultation 

and with approval of the Board, the Chief Executive Officer shall appoint all officers of the Foundation. 


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(c) BOARD OF DIRECTORS.—

(1) ESTABLISHMENT.—There shall be in the Foundation a 

Board of Directors. 

(2) DUTIES.—The Board shall perform the functions specified 

to be carried out by the Board in this subtitle and may prescribe, amend, and repeal bylaws, rules, regulations, and procedures governing the manner in which the business of the 

Foundation may be conducted and in which the powers granted 

to it by law may be exercised. 

(3) MEMBERSHIP.—The Board shall consist of—

(A) the Secretary of State (or the Secretary’s designee), 

the Secretary of Energy (or the Secretary’s designee), and 

the Administrator of the United States Agency for International Development (or the Administrator’s designee); 

and 

(B) four other individuals with relevant experience in 

matters relating to energy security (such as individuals 

who represent institutions of energy policy, business organizations, foreign policy organizations, or other relevant 

organizations) who shall be appointed by the President, by 

and with the advice and consent of the Senate, of whom—

(i) one individual shall be appointed from among a 

list of individuals submitted by the majority leader of 

the House of Representatives; 

(ii) one individual shall be appointed from among a 

list of individuals submitted by the minority leader of 

the House of Representatives; 

(iii) one individual shall be appointed from among a 

list of individuals submitted by the majority leader of 

the Senate; and 

(iv) one individual shall be appointed from among a 

list of individuals submitted by the minority leader of 

the Senate. 

(4) CHIEF EXECUTIVE OFFICER.—The Chief Executive Officer 

of the Foundation shall serve as a nonvoting, ex officio member 

of the Board. 

(5) TERMS.—

(A) OFFICERS OF THE FEDERAL GOVERNMENT.—Each 

member of the Board described in paragraph (3)(A) shall 

serve for a term that is concurrent with the term of service 

of the individual’s position as an officer within the other 

Federal department or agency. 

(B) OTHER MEMBERS.—Each member of the Board described in paragraph (3)(B) shall be appointed for a term 

of 3 years and may be reappointed for a term of an additional 3 years. 

(C) VACANCIES.—A vacancy in the Board shall be filled 

in the manner in which the original appointment was 

made. 

(D) ACTING MEMBERS.—A vacancy in the Board may be 

filled with an appointment of an acting member by the 

Chairperson of the Board for up to 1 year while a nominee 

is named and awaits confirmation in accordance with 

paragraph (3)(B). 


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(6) CHAIRPERSON.—There shall be a Chairperson of the 

Board. The Secretary of State (or the Secretary’s designee) 

shall serve as the Chairperson. 

(7) QUORUM.—A majority of the members of the Board described in paragraph (3) shall constitute a quorum, which, except with respect to a meeting of the Board during the 135-day 

period beginning on the date of the enactment of this Act, shall 

include at least 1 member of the Board described in paragraph 

(3)(B). 

(8) MEETINGS.—The Board shall meet at the call of the 

Chairperson, who shall call a meeting no less than once a year. 

(9) COMPENSATION.—

(A) OFFICERS OF THE FEDERAL GOVERNMENT.—

(i) IN GENERAL.—A member of the Board described 

in paragraph (3)(A) may not receive additional pay, allowances, or benefits by reason of the member’s service on the Board. 

(ii) TRAVEL EXPENSES.—Each such member of the 

Board shall receive travel expenses, including per 

diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 

5, United States Code. 

(B) OTHER MEMBERS.—

(i) IN GENERAL.—Except as provided in clause (ii), a 

member of the Board described in paragraph (3)(B)—

(I) shall be paid compensation out of funds 

made available for the purposes of this subtitle at 

the daily equivalent of the highest rate payable 

under section 5332 of title 5, United States Code, 

for each day (including travel time) during which 

the member is engaged in the actual performance 

of duties as a member of the Board; and 

(II) while away from the member’s home or regular place of business on necessary travel in the 

actual performance of duties as a member of the 

Board, shall be paid per diem, travel, and transportation expenses in the same manner as is provided under subchapter I of chapter 57 of title 5, 

United States Code. 

(ii) LIMITATION.—A member of the Board may not be 

paid compensation under clause (i)(II) for more than 

90 days in any calendar year. 

SEC. 923. DUTIES OF FOUNDATION. 

The Foundation shall—

(1) use the funds authorized by this subtitle to make grants 

to promote projects outside of the United States that serve as 

models of how to significantly reduce the emissions of global 

greenhouse gases through clean and efficient energy technologies, processes, and services; 

(2) seek contributions from foreign governments, especially 

those rich in energy resources such as member countries of the 

Organization of the Petroleum Exporting Countries, and private organizations to supplement funds made available under 

this subtitle; 


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(3) harness global expertise through collaborative partnerships with foreign governments and domestic and foreign private actors, including nongovernmental organizations and private sector companies, by leveraging public and private capital, 

technology, expertise, and services towards innovative models 

that can be instituted to reduce global greenhouse gas emissions; 

(4) create a repository of information on best practices and 

lessons learned on the utilization and implementation of clean 

and efficient energy technologies and processes to be used for 

future initiatives to tackle the climate change crisis; 

(5) be committed to minimizing administrative costs and to 

maximizing the availability of funds for grants under this subtitle; and 

(6) promote the use of American-made clean and efficient energy technologies, processes, and services by giving preference 

to entities incorporated in the United States and whose technology will be substantially manufactured in the United 

States. 

SEC. 924. ANNUAL REPORT. 

(a) REPORT REQUIRED.—Not later than March 31, 2008, and each 

March 31 thereafter, the Foundation shall submit to the appropriate congressional committees a report on the implementation of 

this subtitle during the prior fiscal year. 

(b) CONTENTS.—The report required by subsection (a) shall include—

(1) the total financial resources available to the Foundation 

during the year, including appropriated funds, the value and 

source of any gifts or donations accepted pursuant to section 

925(a)(6), and any other resources; 

(2) a description of the Board’s policy priorities for the year 

and the basis upon which competitive grant proposals were solicited and awarded to nongovernmental institutions and other 

organizations; 

(3) a list of grants made to nongovernmental institutions and 

other organizations that includes the identity of the institutional recipient, the dollar amount, and the results of the program; and 

(4) the total administrative and operating expenses of the 

Foundation for the year, as well as specific information on—

(A) the number of Foundation employees and the cost of 

compensation for Board members, Foundation employees, 

and personal service contractors; 

(B) costs associated with securing the use of real property for carrying out the functions of the Foundation; 

(C) total travel expenses incurred by Board members 

and Foundation employees in connection with Foundation 

activities; and 

(D) total representational expenses. 

SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS. 

(a) POWERS.—The Foundation—

(1) shall have perpetual succession unless dissolved by a law 

enacted after the date of the enactment of this Act; 


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(2) may adopt, alter, and use a seal, which shall be judicially 

noticed; 

(3) may make and perform such contracts, grants, and other 

agreements with any person or government however designated and wherever situated, as may be necessary for carrying out the functions of the Foundation; 

(4) may determine and prescribe the manner in which its obligations shall be incurred and its expenses allowed and paid, 

including expenses for representation; 

(5) may lease, purchase, or otherwise acquire, improve, and 

use such real property wherever situated, as may be necessary 

for carrying out the functions of the Foundation; 

(6) may accept money, funds, services, or property (real, personal, or mixed), tangible or intangible, made available by gift, 

bequest grant, or otherwise for the purpose of carrying out the 

provisions of this title from domestic or foreign private individuals, charities, nongovernmental organizations, corporations, 

or governments; 

(7) may use the United States mails in the same manner and 

on the same conditions as the executive departments; 

(8) may contract with individuals for personal services, who 

shall not be considered Federal employees for any provision of 

law administered by the Office of Personnel Management; 

(9) may hire or obtain passenger motor vehicles; and 

(10) shall have such other powers as may be necessary and 

incident to carrying out this subtitle. 

(b) PRINCIPAL OFFICE.—The Foundation shall maintain its principal office in the metropolitan area of Washington, District of Columbia. 

(c) APPLICABILITY OF GOVERNMENT CORPORATION CONTROL

ACT.—

(1) IN GENERAL.—The Foundation shall be subject to chapter 

91 of subtitle VI of title 31, United States Code, except that the 

Foundation shall not be authorized to issue obligations or offer 

obligations to the public. 

(2) CONFORMING AMENDMENT.—Section 9101(3) of title 31, 

United States Code, is amended by adding at the end the following: ‘‘(R) the International Clean Energy Foundation.’’. (d) INSPECTOR GENERAL.—

(1) IN GENERAL.—The Inspector General of the Department 

of State shall serve as Inspector General of the Foundation, 

and, in acting in such capacity, may conduct reviews, investigations, and inspections of all aspects of the operations and 

activities of the Foundation. 

(2) AUTHORITY OF THE BOARD.—In carrying out the responsibilities under this subsection, the Inspector General shall report to and be under the general supervision of the Board. 

(3) REIMBURSEMENT AND AUTHORIZATION OF SERVICES.— (A) REIMBURSEMENT.—The Foundation shall reimburse 

the Department of State for all expenses incurred by the 

Inspector General in connection with the Inspector General’s responsibilities under this subsection. 

(B) AUTHORIZATION FOR SERVICES.—Of the amount authorized to be appropriated under section 927(a) for a fisVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00256 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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cal year, up to $500,000 is authorized to be made available 

to the Inspector General of the Department of State to conduct reviews, investigations, and inspections of operations 

and activities of the Foundation. 

SEC. 926. GENERAL PERSONNEL AUTHORITIES. 

(a) DETAIL OF PERSONNEL.—Upon request of the Chief Executive 

Officer, the head of an agency may detail any employee of such 

agency to the Foundation on a reimbursable basis. Any employee 

so detailed remains, for the purpose of preserving such employee’s 

allowances, privileges, rights, seniority, and other benefits, an employee of the agency from which detailed. 

(b) REEMPLOYMENT RIGHTS.—

(1) IN GENERAL.—An employee of an agency who is serving 

under a career or career conditional appointment (or the equivalent), and who, with the consent of the head of such agency, 

transfers to the Foundation, is entitled to be reemployed in 

such employee’s former position or a position of like seniority, 

status, and pay in such agency, if such employee—

(A) is separated from the Foundation for any reason, 

other than misconduct, neglect of duty, or malfeasance; 

and 

(B) applies for reemployment not later than 90 days 

after the date of separation from the Foundation. 

(2) SPECIFIC RIGHTS.—An employee who satisfies paragraph 

(1) is entitled to be reemployed (in accordance with such paragraph) within 30 days after applying for reemployment and, on 

reemployment, is entitled to at least the rate of basic pay to 

which such employee would have been entitled had such employee never transferred. 

(c) HIRING AUTHORITY.—Of persons employed by the Foundation, 

no more than 30 persons may be appointed, compensated, or removed without regard to the civil service laws and regulations. 

(d) BASIC PAY.—The Chief Executive Officer may fix the rate of 

basic pay of employees of the Foundation without regard to the provisions of chapter 51 of title 5, United States Code (relating to the 

classification of positions), subchapter III of chapter 53 of such title 

(relating to General Schedule pay rates), except that no employee 

of the Foundation may receive a rate of basic pay that exceeds the 

rate for level IV of the Executive Schedule under section 5315 of 

such title. 

(e) DEFINITIONS.—In this section— (1) the term ‘‘agency’’ means an executive agency, as defined 

by section 105 of title 5, United States Code; and 

(2) the term ‘‘detail’’ means the assignment or loan of an employee, without a change of position, from the agency by which 

such employee is employed to the Foundation. 

SEC. 927. AUTHORIZATION OF APPROPRIATIONS. 

(a) AUTHORIZATION OF APPROPRIATIONS.—To carry out this sub- title, there are authorized to be appropriated $20,000,000 for each 

of the fiscal years 2009 through 2013. 

(b) ALLOCATION OF FUNDS.— (1) IN GENERAL.—The Foundation may allocate or transfer to 

any agency of the United States Government any of the funds 

available for carrying out this subtitle. Such funds shall be 


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available for obligation and expenditure for the purposes for 

which the funds were authorized, in accordance with authority 

granted in this subtitle or under authority governing the activities of the United States Government agency to which such 

funds are allocated or transferred. 

(2) NOTIFICATION.—The Foundation shall notify the appropriate congressional committees not less than 15 days prior to 

an allocation or transfer of funds pursuant to paragraph (1). 

Subtitle C—Miscellaneous Provisions 

SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT OF STATE. 

(a) STATE DEPARTMENT COORDINATOR FOR INTERNATIONAL EN- ERGY AFFAIRS.— (1) IN GENERAL.—The Secretary of State should ensure that 

energy security is integrated into the core mission of the Department of State. 

(2) COORDINATOR FOR INTERNATIONAL ENERGY AFFAIRS.— There is established within the Office of the Secretary of State 

a Coordinator for International Energy Affairs, who shall be 

responsible for— (A) representing the Secretary of State in interagency efforts to develop the international energy policy of the 

United States; 

(B) ensuring that analyses of the national security implications of global energy and environmental developments 

are reflected in the decision making process within the Department of State; 

(C) incorporating energy security priorities into the activities of the Department of State; 

(D) coordinating energy activities of the Department of 

State with relevant Federal agencies; and 

(E) coordinating energy security and other relevant functions within the Department of State currently undertaken 

by offices within— (i) the Bureau of Economic, Energy and Business Affairs; 

(ii) the Bureau of Oceans and International Environmental and Scientific Affairs; and 

(iii) other offices within the Department of State. 

(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as may be necessary to 

carry out this subsection. 

(b) ENERGY EXPERTS IN KEY EMBASSIES.—Not later than 180 

days after the date of the enactment of this Act, the Secretary of 

State shall submit a report to the Committee on Foreign Relations 

of the Senate and the Committee on Foreign Affairs of the House 

of Representatives that includes—

(1) a description of the Department of State personnel who 

are dedicated to energy matters and are stationed at embassies 

and consulates in countries that are major energy producers or 

consumers; 

(2) an analysis of the need for Federal energy specialist personnel in United States embassies and other United States 

diplomatic missions; and 


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(3) recommendations for increasing energy expertise within 

United States embassies among foreign service officers and options for assigning to such embassies energy attache ́s from the 

National Laboratories or other agencies within the Department 

of Energy. 

(c) ENERGY ADVISORS.—The Secretary of Energy may make appropriate arrangements with the Secretary of State to assign personnel from the Department of Energy or the National Laboratories of the Department of Energy to serve as dedicated advisors 

on energy matters in embassies of the United States or other 

United States diplomatic missions. 

(d) REPORT.—Not later than 180 days after the date of the enactment of this Act, and every 2 years thereafter for the following 20 

years, the Secretary of State shall submit a report to the Committee on Foreign Relations of the Senate and the Committee on 

Foreign Affairs of the House of Representatives that describes—

(1) the energy-related activities being conducted by the Department of State, including activities within—

(A) the Bureau of Economic, Energy and Business Affairs; 

(B) the Bureau of Oceans and Environmental and Scientific Affairs; and 

(C) other offices within the Department of State; 

(2) the amount of funds spent on each activity within each 

office described in paragraph (1); and 

(3) the number and qualification of personnel in each embassy (or relevant foreign posting) of the United States whose 

work is dedicated exclusively to energy matters. 

SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION. 

Section 101(a) of the National Security Act of 1947 (50 U.S.C. 

402(a)) is amended—

(1) by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively; and 

(2) by inserting after paragraph (4) the following: 

‘‘(5) the Secretary of Energy;’’. 

SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT. 

(a) REPORTS.—

(1) IN GENERAL.—Subject to paragraph (2), on the date on 

which the President submits to Congress the budget for the following fiscal year under section 1105 of title 31, United States 

Code, the President shall submit to Congress a comprehensive 

report on the national energy security of the United States. 

(2) NEW PRESIDENTS.—In addition to the reports required 

under paragraph (1), the President shall submit a comprehensive report on the national energy security of the United States 

by not later than 150 days after the date on which the President assumes the office of President after a presidential election. 

(b) CONTENTS.—Each report under this section shall describe the 

national energy security strategy of the United States, including a 

comprehensive description of—

(1) the worldwide interests, goals, and objectives of the 

United States that are vital to the national energy security of 

the United States; 


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(2) the foreign policy, worldwide commitments, and national 

defense capabilities of the United States necessary—

(A) to deter political manipulation of world energy resources; and 

(B) to implement the national energy security strategy of 

the United States; 

(3) the proposed short-term and long-term uses of the political, economic, military, and other authorities of the United 

States—

(A) to protect or promote energy security; and 

(B) to achieve the goals and objectives described in paragraph (1); 

(4) the adequacy of the capabilities of the United States to 

protect the national energy security of the United States, including an evaluation of the balance among the capabilities of 

all elements of the national authority of the United States to 

support the implementation of the national energy security 

strategy; and 

(5) such other information as the President determines to be 

necessary to inform Congress on matters relating to the national energy security of the United States. 

(c) CLASSIFIED AND UNCLASSIFIED FORM.—Each national energy 

security strategy report shall be submitted to Congress in—

(1) a classified form; and 

(2) an unclassified form. 

SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE CONTINGENT COST ALLOCATION. 

(a) FINDINGS AND PURPOSE.—

(1) FINDINGS.—Congress finds that—

(A) section 170 of the Atomic Energy Act of 1954 (42 

U.S.C. 2210) (commonly known as the ‘‘Price-Anderson 

Act’’)—

(i) provides a predictable legal framework necessary 

for nuclear projects; and 

(ii) ensures prompt and equitable compensation in 

the event of a nuclear incident in the United States; 

(B) the Price-Anderson Act, in effect, provides operators 

of nuclear powerplants with insurance for damage arising 

out of a nuclear incident and funds the insurance primarily through the assessment of a retrospective premium 

from each operator after the occurrence of a nuclear incident; 

(C) the Convention on Supplementary Compensation for 

Nuclear Damage, done at Vienna on September 12, 1997, 

will establish a global system—

(i) to provide a predictable legal framework necessary for nuclear energy projects; and 

(ii) to ensure prompt and equitable compensation in 

the event of a nuclear incident; 

(D) the Convention benefits United States nuclear suppliers that face potentially unlimited liability for nuclear 

incidents that are not covered by the Price-Anderson Act 

by replacing a potentially open-ended liability with a predictable liability regime that, in effect, provides nuclear 


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suppliers with insurance for damage arising out of such an 

incident; 

(E) the Convention also benefits United States nuclear 

facility operators that may be publicly liable for a PriceAnderson incident by providing an additional early source 

of funds to compensate damage arising out of the Price-Anderson incident; 

(F) the combined operation of the Convention, the PriceAnderson Act, and this section will augment the quantity 

of assured funds available for victims in a wider variety of 

nuclear incidents while reducing the potential liability of 

United States suppliers without increasing potential costs 

to United States operators; 

(G) the cost of those benefits is the obligation of the 

United States to contribute to the supplementary compensation fund established by the Convention; 

(H) any such contribution should be funded in a manner 

that does not— (i) upset settled expectations based on the liability 

regime established under the Price-Anderson Act; or 

(ii) shift to Federal taxpayers liability risks for nuclear incidents at foreign installations; 

(I) with respect to a Price-Anderson incident, funds already available under the Price-Anderson Act should be 

used; and 

(J) with respect to a nuclear incident outside the United 

States not covered by the Price-Anderson Act, a retrospective premium should be prorated among nuclear suppliers 

relieved from potential liability for which insurance is not 

available. 

(2) PURPOSE.—The purpose of this section is to allocate the 

contingent costs associated with participation by the United 

States in the international nuclear liability compensation system established by the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 

12, 1997—

(A) with respect to a Price-Anderson incident, by using 

funds made available under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) to cover the contingent 

costs in a manner that neither increases the burdens nor 

decreases the benefits under section 170 of that Act; and 

(B) with respect to a covered incident outside the United 

States that is not a Price-Anderson incident, by allocating 

the contingent costs equitably, on the basis of risk, among 

the class of nuclear suppliers relieved by the Convention 

from the risk of potential liability resulting from any covered incident outside the United States. 

(b) DEFINITIONS.—In this section: 

(1) COMMISSION.—The term ‘‘Commission’’ means the Nuclear Regulatory Commission. 

(2) CONTINGENT COST.—The term ‘‘contingent cost’’ means 

the cost to the United States in the event of a covered incident 

the amount of which is equal to the amount of funds the 

United States is obligated to make available under paragraph 

1(b) of Article III of the Convention. 


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(3) CONVENTION.—The term ‘‘Convention’’ means the Convention on Supplementary Compensation for Nuclear Damage, 

done at Vienna on September 12, 1997. 

(4) COVERED INCIDENT.—The term ‘‘covered incident’’ means 

a nuclear incident the occurrence of which results in a request 

for funds pursuant to Article VII of the Convention. 

(5) COVERED INSTALLATION.—The term ‘‘covered installation’’ means a nuclear installation at which the occurrence of a nuclear incident could result in a request for funds under Article 

VII of the Convention. 

(6) COVERED PERSON.— (A) IN GENERAL.—The term ‘‘covered person’’ means—

(i) a United States person; and 

(ii) an individual or entity (including an agency or 

instrumentality of a foreign country) that—

(I) is located in the United States; or 

(II) carries out an activity in the United States. 

(B) EXCLUSIONS.—The term ‘‘covered person’’ does not 

include—

(i) the United States; or 

(ii) any agency or instrumentality of the United 

States. 

(7) NUCLEAR SUPPLIER.—The term ‘‘nuclear supplier’’ means 

a covered person (or a successor in interest of a covered person) 

that—(A) supplies facilities, equipment, fuel, services, or technology pertaining to the design, construction, operation, or 

decommissioning of a covered installation; or 

(B) transports nuclear materials that could result in a 

covered incident. 

(8) PRICE-ANDERSON INCIDENT.—The term ‘‘Price-Anderson 

incident’’ means a covered incident for which section 170 of the 

Atomic Energy Act of 1954 (42 U.S.C. 2210) would make funds 

available to compensate for public liability (as defined in section 11 of that Act (42 U.S.C. 2014)). 

(9) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Energy. 

(10) UNITED STATES.— (A) IN GENERAL.—The term ‘‘United States’’ has the 

meaning given the term in section 11 of the Atomic Energy 

Act of 1954 (42 U.S.C. 2014). 

(B) INCLUSIONS.—The term ‘‘United States’’ includes—

(i) the Commonwealth of Puerto Rico; 

(ii) any other territory or possession of the United 

States; 

(iii) the Canal Zone; and 

(iv) the waters of the United States territorial sea 

under Presidential Proclamation Number 5928, dated 

December 27, 1988 (43 U.S.C. 1331 note). 

(11) UNITED STATES PERSON.—The term ‘‘United States person’’ means— (A) any individual who is a resident, national, or citizen 

of the United States (other than an individual residing 

outside of the United States and employed by a person 

who is not a United States person); and 


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(B) any corporation, partnership, association, joint stock 

company, business trust, unincorporated organization, or 

sole proprietorship that is organized under the laws of the 

United States. 

(c) USE OF PRICE-ANDERSON FUNDS.— (1) IN GENERAL.—Funds made available under section 170 of 

the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used 

to cover the contingent cost resulting from any Price-Anderson 

incident. 

(2) EFFECT.—The use of funds pursuant to paragraph (1) 

shall not reduce the limitation on public liability established 

under section 170 e. of the Atomic Energy Act of 1954 (42 

U.S.C. 2210(e)). 

(d) EFFECT ON AMOUNT OF PUBLIC LIABILITY.—

(1) IN GENERAL.—Funds made available to the United States 

under Article VII of the Convention with respect to a Price-Anderson incident shall be used to satisfy public liability resulting from the Price-Anderson incident. 

(2) AMOUNT.—The amount of public liability allowable under 

section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) 

relating to a Price-Anderson incident under paragraph (1) shall 

be increased by an amount equal to the difference between—

(A) the amount of funds made available for the Price-Anderson incident under Article VII of the Convention; and 

(B) the amount of funds used under subsection (c) to 

cover the contingent cost resulting from the Price-Anderson incident. 

(e) RETROSPECTIVE RISK POOLING PROGRAM.— (1) IN GENERAL.—Except as provided under paragraph (2), 

each nuclear supplier shall participate in a retrospective risk 

pooling program in accordance with this section to cover the 

contingent cost resulting from a covered incident outside the 

United States that is not a Price-Anderson incident. 

(2) DEFERRED PAYMENT.—

(A) IN GENERAL.—The obligation of a nuclear supplier to 

participate in the retrospective risk pooling program shall 

be deferred until the United States is called on to provide 

funds pursuant to Article VII of the Convention with respect to a covered incident that is not a Price-Anderson incident. 

(B) AMOUNT OF DEFERRED PAYMENT.—The amount of a 

deferred payment of a nuclear supplier under subparagraph (A) shall be based on the risk-informed assessment 

formula determined under subparagraph (C). 

(C) RISK-INFORMED ASSESSMENT FORMULA.—

(i) IN GENERAL.—Not later than 3 years after the 

date of the enactment of this Act, and every 5 years 

thereafter, the Secretary shall, by regulation, determine the risk-informed assessment formula for the allocation among nuclear suppliers of the contingent 

cost resulting from a covered incident that is not a 

Price-Anderson incident, taking into account risk factors such as— (I) the nature and intended purpose of the goods 

and services supplied by each nuclear supplier to 


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each covered installation outside the United 

States; 

(II) the quantity of the goods and services supplied by each nuclear supplier to each covered installation outside the United States; 

(III) the hazards associated with the supplied 

goods and services if the goods and services fail to 

achieve the intended purposes; 

(IV) the hazards associated with the covered installation outside the United States to which the 

goods and services are supplied; 

(V) the legal, regulatory, and financial infrastructure associated with the covered installation 

outside the United States to which the goods and 

services are supplied; and 

(VI) the hazards associated with particular 

forms of transportation. 

(ii) FACTORS FOR CONSIDERATION.—In determining 

the formula, the Secretary may— (I) exclude— (aa) goods and services with negligible risk; 

(bb) classes of goods and services not intended specifically for use in a nuclear installation; 

(cc) a nuclear supplier with a de minimis 

share of the contingent cost; and 

(dd) a nuclear supplier no longer in existence for which there is no identifiable successor; and 

(II) establish the period on which the risk assessment is based. 

(iii) APPLICATION.—In applying the formula, the Secretary shall not consider any covered installation or 

transportation for which funds would be available 

under section 170 of the Atomic Energy Act of 1954 

(42 U.S.C. 2210). 

(iv) REPORT.—Not later than 5 years after the date 

of the enactment of this Act, and every 5 years thereafter, the Secretary shall submit to the Committee on 

Environment and Public Works of the Senate and the 

Committee on Energy and Commerce of the House of 

Representatives a report on whether there is a need 

for continuation or amendment of this section, taking 

into account the effects of the implementation of the 

Convention on the United States nuclear industry and 

suppliers. 

(f) REPORTING.—

(1) COLLECTION OF INFORMATION.—

(A) IN GENERAL.—The Secretary may collect information 

necessary for developing and implementing the formula for 

calculating the deferred payment of a nuclear supplier 

under subsection (e)(2). 

(B) PROVISION OF INFORMATION.—Each nuclear supplier 

and other appropriate persons shall make available to the 

Secretary such information, reports, records, documents, 


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and other data as the Secretary determines, by regulation, 

to be necessary or appropriate to develop and implement 

the formula under subsection (e)(2)(C). 

(2) PRIVATE INSURANCE.—The Secretary shall make available 

to nuclear suppliers, and insurers of nuclear suppliers, information to support the voluntary establishment and maintenance of private insurance against any risk for which nuclear 

suppliers may be required to pay deferred payments under this 

section. 

(g) EFFECT ON LIABILITY.—Nothing in any other law (including 

regulations) limits liability for a covered incident to an amount 

equal to less than the amount prescribed in paragraph 1(a) of Article IV of the Convention, unless the law—

(1) specifically refers to this section; and 

(2) explicitly repeals, alters, amends, modifies, impairs, displaces, or supersedes the effect of this subsection. 

(h) PAYMENTS TO AND BY THE UNITED STATES.—

(1) ACTION BY NUCLEAR SUPPLIERS.—

(A) NOTIFICATION.—In the case of a request for funds 

under Article VII of the Convention resulting from a covered incident that is not a Price-Anderson incident, the 

Secretary shall notify each nuclear supplier of the amount 

of the deferred payment required to be made by the nuclear supplier. 

(B) PAYMENTS.—

(i) IN GENERAL.—Except as provided under clause 

(ii), not later than 60 days after receipt of a notification under subparagraph (A), a nuclear supplier shall 

pay to the general fund of the Treasury the deferred 

payment of the nuclear supplier required under subparagraph (A). 

(ii) ANNUAL PAYMENTS.—A nuclear supplier may 

elect to prorate payment of the deferred payment required under subparagraph (A) in 5 equal annual payments (including interest on the unpaid balance at the 

prime rate prevailing at the time the first payment is 

due). 

(C) VOUCHERS.—A nuclear supplier shall submit payment certification vouchers to the Secretary of the Treasury in accordance with section 3325 of title 31, United 

States Code. 

(2) USE OF FUNDS.—

(A) IN GENERAL.—Amounts paid into the Treasury under 

paragraph (1) shall be available to the Secretary of the 

Treasury, without further appropriation and without fiscal 

year limitation, for the purpose of making the contributions of public funds required to be made by the United 

States under the Convention. 

(B) ACTION BY SECRETARY OF TREASURY.—The Secretary 

of the Treasury shall pay the contribution required under 

the Convention to the court of competent jurisdiction 

under Article XIII of the Convention with respect to the 

applicable covered incident. 


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(3) FAILURE TO PAY.—If a nuclear supplier fails to make a 

payment required under this subsection, the Secretary may 

take appropriate action to recover from the nuclear supplier—

(A) the amount of the payment due from the nuclear 

supplier; 

(B) any applicable interest on the payment; and 

(C) a penalty of not more than twice the amount of the 

deferred payment due from the nuclear supplier. 

(i) LIMITATION ON JUDICIAL REVIEW; CAUSE OF ACTION.—

(1) LIMITATION ON JUDICIAL REVIEW.—

(A) IN GENERAL.—In any civil action arising under the 

Convention over which Article XIII of the Convention 

grants jurisdiction to the courts of the United States, any 

appeal or review by writ of mandamus or otherwise with 

respect to a nuclear incident that is not a Price-Anderson 

incident shall be in accordance with chapter 83 of title 28, 

United States Code, except that the appeal or review shall 

occur in the United States Court of Appeals for the District of Columbia Circuit. 

(B) SUPREME COURT JURISDICTION.—Nothing in this 

paragraph affects the jurisdiction of the Supreme Court of 

the United States under chapter 81 of title 28, United 

States Code. 

(2) CAUSE OF ACTION.—

(A) IN GENERAL.—Subject to subparagraph (B), in any 

civil action arising under the Convention over which Article XIII of the Convention grants jurisdiction to the courts 

of the United States, in addition to any other cause of action that may exist, an individual or entity shall have a 

cause of action against the operator to recover for nuclear 

damage suffered by the individual or entity. 

(B) REQUIREMENT.—Subparagraph (A) shall apply only if 

the individual or entity seeks a remedy for nuclear damage 

(as defined in Article I of the Convention) that was caused 

by a nuclear incident (as defined in Article I of the Convention) that is not a Price-Anderson incident. 

(C) SAVINGS PROVISION.—Nothing in this paragraph may 

be construed to limit, modify, extinguish, or otherwise affect any cause of action that would have existed in the absence of enactment of this paragraph. 

(j) RIGHT OF RECOURSE.—This section does not provide to an operator of a covered installation any right of recourse under the 

Convention. 

(k) PROTECTION OF SENSITIVE UNITED STATES INFORMATION.—

Nothing in the Convention or this section requires the disclosure 

of—

(1) any data that, at any time, was Restricted Data (as defined in section 11 of the Atomic Energy Act of 1954 (42 U.S.C. 

2014)); 

(2) information relating to intelligence sources or methods 

protected by section 102A(i) of the National Security Act of 

1947 (50 U.S.C. 403–1(i)); or 

(3) national security information classified under Executive 

Order 12958 (50 U.S.C. 435 note; relating to classified national 


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security information) (or a successor Executive Order or regulation). 

(l) REGULATIONS.— (1) IN GENERAL.—The Secretary or the Commission, as appropriate, may prescribe regulations to carry out section 170 of 

the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this section. 

(2) REQUIREMENT.—Rules prescribed under this subsection 

shall ensure, to the maximum extent practicable, that— (A) the implementation of section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this section is consistent and equitable; and 

(B) the financial and operational burden on a Commission licensee in complying with section 170 of that Act is 

not greater as a result of the enactment of this section. 

(3) APPLICABILITY OF PROVISION.—Section 553 of title 5, 

United States Code, shall apply with respect to the promulgation of regulations under this subsection. 

(4) EFFECT OF SUBSECTION.—The authority provided under 

this subsection is in addition to, and does not impair or otherwise affect, any other authority of the Secretary or the Commission to prescribe regulations. 

(m) EFFECTIVE DATE.—This section shall take effect on the date 

of the enactment of this Act. 

SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE 

PAYMENTS. 

(a) PURPOSE.—The purpose of this section is to— (1) ensure greater United States energy security by combating corruption in the governments of foreign countries that 

receive revenues from the sale of their natural resources; and 

(2) enhance the development of democracy and increase political and economic stability in such resource rich foreign countries. 

(b) STATEMENT OF POLICY.—It is the policy of the United 

States—

(1) to increase energy security by promoting anti-corruption 

initiatives in oil and natural gas rich countries; and 

(2) to promote global energy security through promotion of 

programs such as the Extractive Industries Transparency Initiative (EITI) that seek to instill transparency and accountability into extractive industries resource payments. 

(c) SENSE OF CONGRESS.—It is the sense of Congress that the 

United States should further global energy security and promote 

democratic development in resource-rich foreign countries by—

(1) encouraging further participation in the EITI by eligible 

countries and companies; and 

(2) promoting the efficacy of the EITI program by ensuring 

a robust and candid review mechanism. 

(d) REPORT.—

(1) REPORT REQUIRED.—Not later than 180 days after the 

date of the enactment of this Act, and annually thereafter, the 

Secretary of State, in consultation with the Secretary of Energy, shall submit to the appropriate congressional committees 

a report on progress made in promoting transparency in extractive industries resource payments. 


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(2) MATTERS TO BE INCLUDED.—The report required by paragraph (1) shall include a detailed description of United States 

participation in the EITI, bilateral and multilateral diplomatic 

efforts to further participation in the EITI, and other United 

States initiatives to strengthen energy security, deter energy 

kleptocracy, and promote transparency in the extractive industries. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated $3,000,000 for the purposes of United States contributions to the Multi-Donor Trust Fund of the EITI. 

TITLE X—GREEN JOBS 

SEC. 1001. SHORT TITLE. 

This title may be cited as the ‘‘Green Jobs Act of 2007’’. 

SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER 

TRAINING PROGRAM. 

Section 171 of the Workforce Investment Act of 1998 (29 U.S.C. 

2916) is amended by adding at the end the following: 

‘‘(e) ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER

TRAINING PROGRAM.—

‘‘(1) GRANT PROGRAM.—

‘‘(A) IN GENERAL.—Not later than 6 months after the 

date of enactment of the Green Jobs Act of 2007, the Secretary, in consultation with the Secretary of Energy, shall 

establish an energy efficiency and renewable energy worker training program under which the Secretary shall carry 

out the activities described in paragraph (2) to achieve the 

purposes of this subsection. 

‘‘(B) ELIGIBILITY.—For purposes of providing assistance 

and services under the program established under this 

subsection—

‘‘(i) target populations of eligible individuals to be 

given priority for training and other services shall include—

‘‘(I) workers impacted by national energy and 

environmental policy; 

‘‘(II) individuals in need of updated training related to the energy efficiency and renewable energy industries; 

‘‘(III) veterans, or past and present members of 

reserve components of the Armed Forces; 

‘‘(IV) unemployed individuals; 

‘‘(V) individuals, including at-risk youth, seeking 

employment pathways out of poverty and into economic self-sufficiency; and 

‘‘(VI) formerly incarcerated, adjudicated, nonviolent offenders; and 

‘‘(ii) energy efficiency and renewable energy industries eligible to participate in a program under this 

subsection include—

‘‘(I) the energy-efficient building, construction, 

and retrofits industries; 

‘‘(II) the renewable electric power industry; 


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‘‘(III) the energy efficient and advanced drive 

train vehicle industry; ‘‘(IV) the biofuels industry; 

‘‘(V) the deconstruction and materials use industries; ‘‘(VI) the energy efficiency assessment industry 

serving the residential, commercial, or industrial 

sectors; and ‘‘(VII) manufacturers that produce sustainable 

products using environmentally sustainable processes and materials. ‘‘(2) ACTIVITIES.—

‘‘(A) NATIONAL RESEARCH PROGRAM.—Under the program 

established under paragraph (1), the Secretary, acting 

through the Bureau of Labor Statistics, where appropriate, 

shall collect and analyze labor market data to track workforce trends resulting from energy-related initiatives carried out under this subsection. Activities carried out under 

this paragraph shall include—

‘‘(i) tracking and documentation of academic and occupational competencies as well as future skill needs 

with respect to renewable energy and energy efficiency 

technology; 

‘‘(ii) tracking and documentation of occupational information and workforce training data with respect to 

renewable energy and energy efficiency technology; 

‘‘(iii) collaborating with State agencies, workforce investments boards, industry, organized labor, and community and nonprofit organizations to disseminate information on successful innovations for labor market 

services and worker training with respect to renewable energy and energy efficiency technology; 

‘‘(iv) serving as a clearinghouse for best practices in 

workforce development, job placement, and collaborative training partnerships; 

‘‘(v) encouraging the establishment of workforce 

training initiatives with respect to renewable energy 

and energy efficiency technologies; 

‘‘(vi) linking research and development in renewable 

energy and energy efficiency technology with the development of standards and curricula for current and 

future jobs; 

‘‘(vii) assessing new employment and work practices 

including career ladder and upgrade training as well 

as high performance work systems; and 

‘‘(viii) providing technical assistance and capacity 

building to national and State energy partnerships, including industry and labor representatives. 

‘‘(B) NATIONAL ENERGY TRAINING PARTNERSHIP GRANTS.— ‘‘(i) IN GENERAL.—Under the program established 

under paragraph (1), the Secretary shall award National Energy Training Partnerships Grants on a competitive basis to eligible entities to enable such entities 

to carry out training that leads to economic self-sufficiency and to develop an energy efficiency and renewVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00269 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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able energy industries workforce. Grants shall be 

awarded under this subparagraph so as to ensure geographic diversity with at least 2 grants awarded to entities located in each of the 4 Petroleum Administration for Defense Districts with no subdistricts, and at 

least 1 grant awarded to an entity located in each of 

the subdistricts of the Petroleum Administration for 

Defense District with subdistricts. ‘‘(ii) ELIGIBILITY.—To be eligible to receive a grant 

under clause (i), an entity shall be a nonprofit partnership that— ‘‘(I) includes the equal participation of industry, 

including public or private employers, and labor 

organizations, including joint labor-management 

training programs, and may include workforce investment boards, community-based organizations, 

qualified service and conservation corps, educational institutions, small businesses, cooperatives, State and local veterans agencies, and veterans service organizations; and ‘‘(II) demonstrates— ‘‘(aa) experience in implementing and operating worker skills training and education 

programs; ‘‘(bb) the ability to identify and involve in 

training programs carried out under this 

grant, target populations of individuals who 

would benefit from training and be actively 

involved in activities related to energy efficiency and renewable energy industries; and ‘‘(cc) the ability to help individuals achieve 

economic self-sufficiency. ‘‘(iii) PRIORITY.—Priority shall be given to partnerships which leverage additional public and private resources to fund training programs, including cash or 

in-kind matches from participating employers. ‘‘(C) STATE LABOR MARKET RESEARCH, INFORMATION, AND

LABOR EXCHANGE RESEARCH PROGRAM.— ‘‘(i) IN GENERAL.—Under the program established 

under paragraph (1), the Secretary shall award competitive grants to States to enable such States to administer labor market and labor exchange information 

programs that include the implementation of the activities described in clause (ii), in coordination with 

the one-stop delivery system. ‘‘(ii) ACTIVITIES.—A State shall use amounts awarded under a grant under this subparagraph to provide 

funding to the State agency that administers the Wagner-Peyser Act and State unemployment compensation 

programs to carry out the following activities using 

State agency merit staff: ‘‘(I) The identification of job openings in the renewable energy and energy efficiency sector. ‘‘(II) The administration of skill and aptitude 

testing and assessment for workers. 


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‘‘(III) The counseling, case management, and referral of qualified job seekers to openings and 

training programs, including energy efficiency and 

renewable energy training programs. 

‘‘(D) STATE ENERGY TRAINING PARTNERSHIP PROGRAM.—

‘‘(i) IN GENERAL.—Under the program established 

under paragraph (1), the Secretary shall award competitive grants to States to enable such States to administer renewable energy and energy efficiency workforce development programs that include the implementation of the activities described in clause (ii). 

‘‘(ii) PARTNERSHIPS.—A State shall use amounts 

awarded under a grant under this subparagraph to 

award competitive grants to eligible State Energy Sector Partnerships to enable such Partnerships to coordinate with existing apprenticeship and labor management training programs and implement training programs that lead to the economic self-sufficiency of 

trainees. 

‘‘(iii) ELIGIBILITY.—To be eligible to receive a grant 

under this subparagraph, a State Energy Sector Partnership shall—

‘‘(I) consist of nonprofit organizations that include equal participation from industry, including 

public or private nonprofit employers, and labor 

organizations, including joint labor-management 

training programs, and may include representatives from local governments, the workforce investment system, including one-stop career centers, community based organizations, qualified 

service and conservation corps, community colleges, and other post-secondary institutions, small 

businesses, cooperatives, State and local veterans 

agencies, and veterans service organizations; 

‘‘(II) demonstrate experience in implementing 

and operating worker skills training and education programs; and 

‘‘(III) demonstrate the ability to identify and involve in training programs, target populations of 

workers who would benefit from training and be 

actively involved in activities related to energy efficiency and renewable energy industries. 

‘‘(iv) PRIORITY.—In awarding grants under this subparagraph, the Secretary shall give priority to States 

that demonstrate that activities under the grant—

‘‘(I) meet national energy policies associated 

with energy efficiency, renewable energy, and the 

reduction of emissions of greenhouse gases; 

‘‘(II) meet State energy policies associated with 

energy efficiency, renewable energy, and the reduction of emissions of greenhouse gases; and 

‘‘(III) leverage additional public and private resources to fund training programs, including cash 

or in-kind matches from participating employers. 


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‘‘(v) COORDINATION.—A grantee under this subparagraph shall coordinate activities carried out under the 

grant with existing other appropriate training programs, including apprenticeship and labor management training programs, including such activities referenced in paragraph (3)(A), and implement training 

programs that lead to the economic self-sufficiency of 

trainees. 

‘‘(E) PATHWAYS OUT OF POVERTY DEMONSTRATION PROGRAM.—

‘‘(i) IN GENERAL.—Under the program established 

under paragraph (1), the Secretary shall award competitive grants of sufficient size to eligible entities to 

enable such entities to carry out training that leads to 

economic self-sufficiency. The Secretary shall give priority to entities that serve individuals in families with 

income of less than 200 percent of the sufficiency 

standard for the local areas where the training is conducted that specifies, as defined by the State, or where 

such standard is not established, the income needs of 

families, by family size, the number and ages of children in the family, and sub-State geographical considerations. Grants shall be awards to ensure geographic 

diversity. 

‘‘(ii) ELIGIBLE ENTITIES.—To be eligible to receive a 

grant an entity shall be a partnership that—

‘‘(I) includes community-based nonprofit organizations, educational institutions with expertise in 

serving low-income adults or youth, public or private employers from the industry sectors described in paragraph (1)(B)(ii), and labor organizations representing workers in such industry sectors; 

‘‘(II) demonstrates a record of successful experience in implementing and operating worker skills 

training and education programs; 

‘‘(III) coordinates activities, where appropriate, 

with the workforce investment system; and 

‘‘(IV) demonstrates the ability to recruit individuals for training and to support such individuals 

to successful completion in training programs carried out under this grant, targeting populations of 

workers who are or will be engaged in activities 

related to energy efficiency and renewable energy 

industries. 

‘‘(iii) PRIORITIES.—In awarding grants under this 

paragraph, the Secretary shall give priority to applicants that—

‘‘(I) target programs to benefit low-income workers, unemployed youth and adults, high school 

dropouts, or other underserved sectors of the 

workforce within areas of high poverty; 

‘‘(II) ensure that supportive services are integrated with education and training, and delivered 


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by organizations with direct access to and experience with targeted populations; 

‘‘(III) leverage additional public and private resources to fund training programs, including cash 

or in-kind matches from participating employers; 

‘‘(IV) involve employers and labor organizations 

in the determination of relevant skills and competencies and ensure that the certificates or credentials that result from the training are employer-recognized; 

‘‘(V) deliver courses at alternative times (such 

as evening and weekend programs) and locations 

most convenient and accessible to participants and 

link adult remedial education with occupational 

skills training; and 

‘‘(VI) demonstrate substantial experience in administering local, municipal, State, Federal, foundation, or private entity grants. 

‘‘(iv) DATA COLLECTION.—Grantees shall collect and 

report the following information: 

‘‘(I) The number of participants. 

‘‘(II) The demographic characteristics of participants, including race, gender, age, parenting status, participation in other Federal programs, education and literacy level at entry, significant barriers to employment (such as limited English proficiency, criminal record, addiction or mental 

health problem requiring treatment, or mental 

disability). 

‘‘(III) The services received by participants, including training, education, and supportive services. 

‘‘(IV) The amount of program spending per participant. 

‘‘(V) Program completion rates. 

‘‘(VI) Factors determined as significantly interfering with program participation or completion. 

‘‘(VII) The rate of Job placement and the rate of 

employment retention after 1 year. 

‘‘(VIII) The average wage at placement, including any benefits, and the rate of average wage increase after 1 year. 

‘‘(IX) Any post-employment supportive services 

provided. 

The Secretary shall assist grantees in the collection of 

data under this clause by making available, where 

practicable, low-cost means of tracking the labor market outcomes of participants, and by providing standardized reporting forms, where appropriate. 

‘‘(3) ACTIVITIES.—

‘‘(A) IN GENERAL.—Activities to be carried out under a 

program authorized by subparagraph (B), (D), or (E) of 

paragraph (2) shall be coordinated with existing systems 

or providers, as appropriate. Such activities may include—


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‘‘(i) occupational skills training, including curriculum development, on-the-job training, and classroom training; 

‘‘(ii) safety and health training; 

‘‘(iii) the provision of basic skills, literacy, GED, 

English as a second language, and job readiness training; 

‘‘(iv) individual referral and tuition assistance for a 

community college training program, or any training 

program leading to an industry-recognized certificate; 

‘‘(v) internship programs in fields related to energy 

efficiency and renewable energy; 

‘‘(vi) customized training in conjunction with an existing registered apprenticeship program or labor-management partnership; 

‘‘(vii) incumbent worker and career ladder training 

and skill upgrading and retraining; 

‘‘(viii) the implementation of transitional jobs strategies; and 

‘‘(ix) the provision of supportive services. 

‘‘(B) OUTREACH ACTIVITIES.—In addition to the activities 

authorized under subparagraph (A), activities authorized 

for programs under subparagraph (E) of paragraph (2) 

may include the provision of outreach, recruitment, career 

guidance, and case management services. 

‘‘(4) WORKER PROTECTIONS AND NONDISCRIMINATION REQUIREMENTS.—

‘‘(A) APPLICATION OF WIA.—The provisions of sections 

181 and 188 of the Workforce Investment Act of 1998 (29 

U.S.C. 2931 and 2938) shall apply to all programs carried 

out with assistance under this subsection. 

‘‘(B) CONSULTATION WITH LABOR ORGANIZATIONS.—If a 

labor organization represents a substantial number of 

workers who are engaged in similar work or training in an 

area that is the same as the area that is proposed to be 

funded under this Act, the labor organization shall be provided an opportunity to be consulted and to submit comments in regard to such a proposal. 

‘‘(5) PERFORMANCE MEASURES.—

‘‘(A) IN GENERAL.—The Secretary shall negotiate and 

reach agreement with the eligible entities that receive 

grants and assistance under this section on performance 

measures for the indicators of performance referred to in 

subparagraphs (A) and (B) of section 136(b)(2) that will be 

used to evaluate the performance of the eligible entity in 

carrying out the activities described in subsection (e)(2). 

Each performance measure shall consist of such an indicator of performance, and a performance level referred to 

in subparagraph (B). 

‘‘(B) PERFORMANCE LEVELS.—The Secretary shall negotiate and reach agreement with the eligible entity regarding the levels of performance expected to be achieved by 

the eligible entity on the indicators of performance. 

‘‘(6) REPORT.—


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‘‘(A) STATUS REPORT.—Not later than 18 months after 

the date of enactment of the Green Jobs Act of 2007, the 

Secretary shall transmit a report to the Senate Committee 

on Energy and Natural Resources, the Senate Committee 

on Health, Education, Labor, and Pensions, the House 

Committee on Education and Labor, and the House Committee on Energy and Commerce on the training program 

established by this subsection. The report shall include a 

description of the entities receiving funding and the activities carried out by such entities. 

‘‘(B) EVALUATION.—Not later than 3 years after the date 

of enactment of such Act, the Secretary shall transmit to 

the Senate Committee on Energy and Natural Resources, 

the Senate Committee on Health, Education, Labor, and 

Pensions, the House Committee on Education and Labor, 

and the House Committee on Energy and Commerce an 

assessment of such program and an evaluation of the activities carried out by entities receiving funding from such 

program. 

‘‘(7) DEFINITION.—As used in this subsection, the term ‘renewable energy’ has the meaning given such term in section 

203(b)(2) of the Energy Policy Act of 2005 (Public Law 109–58). 

‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection, 

$125,000,000 for each fiscal years, of which—

‘‘(A) not to exceed 20 percent of the amount appropriated 

in each such fiscal year shall be made available for, and 

shall be equally divided between, national labor market research and information under paragraph (2)(A) and State 

labor market information and labor exchange research 

under paragraph (2)(C), and not more than 2 percent of 

such amount shall be for the evaluation and report required under paragraph (4); 

‘‘(B) 20 percent shall be dedicated to Pathways Out of 

Poverty Demonstration Programs under paragraph (2)(E); 

and 

‘‘(C) the remainder shall be divided equally between National Energy Partnership Training Grants under paragraph (2)(B) and State energy training partnership grants 

under paragraph (2)(D).’’. 

TITLE XI—ENERGY TRANSPORTATION AND 

INFRASTRUCTURE 

Subtitle A—Department of Transportation 

SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT. 

(a) IN GENERAL.—Section 102 of title 49, United States Code, is 

amended—

(1) by redesignating subsection (g) as subsection (h); and 

(2) by inserting after subsection (f) the following: 

‘‘(g) OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.—

‘‘(1) ESTABLISHMENT.—There is established in the Department an Office of Climate Change and Environment to plan, 

coordinate, and implement—


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‘‘(A) department-wide research, strategies, and actions 

under the Department’s statutory authority to reduce 

transportation-related energy use and mitigate the effects 

of climate change; and ‘‘(B) department-wide research strategies and actions to 

address the impacts of climate change on transportation 

systems and infrastructure. ‘‘(2) CLEARINGHOUSE.—The Office shall establish a clearinghouse of solutions, including cost-effective congestion reduction 

approaches, to reduce air pollution and transportation-related 

energy use and mitigate the effects of climate change.’’. (b) COORDINATION.—The Office of Climate Change and Environment of the Department of Transportation shall coordinate its activities with the United States Global Change Research Program. 

(c) TRANSPORTATION SYSTEM’S IMPACT ON CLIMATE CHANGE AND

FUEL EFFICIENCY.— (1) STUDY.—The Office of Climate Change and Environment, 

in coordination with the Environmental Protection Agency and 

in consultation with the United States Global Change Research 

Program, shall conduct a study to examine the impact of the 

Nation’s transportation system on climate change and the fuel 

efficiency savings and clean air impacts of major transportation projects, to identify solutions to reduce air pollution and 

transportation-related energy use and mitigate the effects of 

climate change, and to examine the potential fuel savings that 

could result from changes in the current transportation system 

and through the use of intelligent transportation systems that 

help businesses and consumers to plan their travel and avoid 

delays, including Web-based real-time transit information systems, congestion information systems, carpool information systems, parking information systems, freight route management 

systems, and traffic management systems. 

(2) REPORT.—Not later than one year after the date of enactment of this Act, the Secretary of Transportation, in coordination with the Administrator of the Environmental Protection 

Agency, shall transmit to the Committee on Transportation 

and Infrastructure and the Committee on Energy and Commerce of the House of Representatives and the Committee on 

Commerce, Science, and Transportation and the Committee on 

Environment and Public Works of the Senate a report that 

contains the results of the study required under this section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary of Transportation for the Office of 

Climate Change and Environment to carry out its duties under section 102(g) of title 49, United States Code (as amended by this Act), 

such sums as may be necessary for fiscal years 2008 through 2011. 

Subtitle B—Railroads 

SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM. 

(a) IN GENERAL.—The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall establish and carry out a pilot program for making grants 

to railroad carriers (as defined in section 20102 of title 49, United 

States Code) and State and local governments—


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(1) for assistance in purchasing hybrid or other energy-efficient locomotives, including hybrid switch and generator-set locomotives; and 

(2) to demonstrate the extent to which such locomotives increase fuel economy, reduce emissions, and lower costs of operation. 

(b) LIMITATION.—Notwithstanding subsection (a), no grant under 

this section may be used to fund the costs of emissions reductions 

that are mandated under Federal law. 

(c) GRANT CRITERIA.—In selecting applicants for grants under 

this section, the Secretary of Transportation shall consider—

(1) the level of energy efficiency that would be achieved by 

the proposed project; 

(2) the extent to which the proposed project would assist in 

commercial deployment of hybrid or other energy-efficient locomotive technologies; 

(3) the extent to which the proposed project complements 

other private or governmental partnership efforts to improve 

air quality or fuel efficiency in a particular area; and 

(4) the extent to which the applicant demonstrates innovative strategies and a financial commitment to increasing energy efficiency and reducing greenhouse gas emissions of its 

railroad operations. 

(d) COMPETITIVE GRANT SELECTION PROCESS.—

(1) APPLICATIONS.—A railroad carrier or State or local government seeking a grant under this section shall submit for 

approval by the Secretary of Transportation an application for 

the grant containing such information as the Secretary of 

Transportation may require. 

(2) COMPETITIVE SELECTION.—The Secretary of Transportation shall conduct a national solicitation for applications for 

grants under this section and shall select grantees on a competitive basis. 

(e) FEDERAL SHARE.—The Federal share of the cost of a project 

under this section shall not exceed 80 percent of the project cost. 

(f) REPORT.—Not later than 3 years after the date of enactment 

of this Act, the Secretary of Transportation shall submit to Congress a report on the results of the pilot program carried out under 

this section. 

(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary of Transportation $10,000,000 for 

each of the fiscal years 2008 through 2011 to carry out this section. 

Such funds shall remain available until expended. 

SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS. 

(a) AMENDMENT.—Chapter 223 of title 49, United States Code, is 

amended to read as follows: 

‘‘CHAPTER 223—CAPITAL GRANTS FOR CLASS II AND 

CLASS III RAILROADS 

‘‘Sec. 

‘‘22301. Capital grants for class II and class III railroads. 

‘‘§ 22301. Capital grants for class II and class III railroads 

‘‘(a) ESTABLISHMENT OF PROGRAM.—


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‘‘(1) ESTABLISHMENT.—The Secretary of Transportation shall 

establish a program for making capital grants to class II and 

class III railroads. Such grants shall be for projects in the public interest that— ‘‘(A)(i) rehabilitate, preserve, or improve railroad track 

(including roadbed, bridges, and related track structures) 

used primarily for freight transportation; ‘‘(ii) facilitate the continued or greater use of railroad 

transportation for freight shipments; and ‘‘(iii) reduce the use of less fuel efficient modes of transportation in the transportation of such shipments; and ‘‘(B) demonstrate innovative technologies and advanced 

research and development that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation. ‘‘(2) PROVISION OF GRANTS.—Grants may be provided under 

this chapter—

‘‘(A) directly to the class II or class III railroad; or 

‘‘(B) with the concurrence of the class II or class III railroad, to a State or local government. 

‘‘(3) STATE COOPERATION.—Class II and class III railroad applicants for a grant under this chapter are encouraged to utilize the expertise and assistance of State transportation agencies in applying for and administering such grants. State 

transportation agencies are encouraged to provide such expertise and assistance to such railroads. ‘‘(4) REGULATIONS.—Not later than October 1, 2008, the Secretary shall issue final regulations to implement the program 

under this section. ‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum Federal share 

for carrying out a project under this section shall be 80 percent of 

the project cost. The non-Federal share may be provided by any 

non-Federal source in cash, equipment, or supplies. Other in-kind 

contributions may be approved by the Secretary on a case-by-case 

basis consistent with this chapter. ‘‘(c) USE OF FUNDS.—Grants provided under this section shall be 

used to implement track capital projects as soon as possible. In no 

event shall grant funds be contractually obligated for a project 

later than the end of the third Federal fiscal year following the 

year in which the grant was awarded. Any funds not so obligated 

by the end of such fiscal year shall be returned to the Secretary 

for reallocation. ‘‘(d) EMPLOYEE PROTECTION.—The Secretary shall require as a 

condition of any grant made under this section that the recipient 

railroad provide a fair arrangement at least as protective of the interests of employees who are affected by the project to be funded 

with the grant as the terms imposed under section 11326(a), as in 

effect on the date of the enactment of this chapter. 

‘‘(e) LABOR STANDARDS.— ‘‘(1) PREVAILING WAGES.—The Secretary shall ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed by a grant made under this 

section will be paid wages not less than those prevailing on 

similar construction in the locality, as determined by the Secretary of Labor under subchapter IV of chapter 31 of title 40 


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(commonly known as the ‘Davis-Bacon Act’). The Secretary 

shall make a grant under this section only after being assured 

that required labor standards will be maintained on the construction work. ‘‘(2) WAGE RATES.—Wage rates in a collective bargaining 

agreement negotiated under the Railway Labor Act (45 U.S.C. 

151 et seq.) are deemed for purposes of this subsection to comply with the subchapter IV of chapter 31 of title 40. ‘‘(f) STUDY.—The Secretary shall conduct a study of the projects 

carried out with grant assistance under this section to determine 

the extent to which the program helps promote a reduction in fuel 

use associated with the transportation of freight and demonstrates 

innovative technologies that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation. Not later 

than March 31, 2009, the Secretary shall submit a report to the 

Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Commerce, Science, and 

Transportation of the Senate on the study, including any recommendations the Secretary considers appropriate regarding the 

program. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary $50,000,000 for each of fiscal 

years 2008 through 2011 for carrying out this section.’’. 

(b) CLERICAL AMENDMENT.—The item relating to chapter 223 in 

the table of chapters of subtitle V of title 49, United States Code, 

is amended to read as follows: 

‘‘223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS ........22301’’. 

Subtitle C—Marine Transportation 

SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE. 

(a) IN GENERAL.—Title 46, United States Code, is amended by 

adding after chapter 555 the following: 

‘‘CHAPTER 556—SHORT SEA TRANSPORTATION 

‘‘Sec. 55601. Short sea transportation program. 

‘‘Sec. 55602. Cargo and shippers. 

‘‘Sec. 55603. Interagency coordination. 

‘‘Sec. 55604. Research on short sea transportation. 

‘‘Sec. 55605. Short sea transportation defined. 

‘‘§ 55601. Short sea transportation program 

‘‘(a) ESTABLISHMENT.—The Secretary of Transportation shall establish a short sea transportation program and designate short sea 

transportation projects to be conducted under the program to mitigate landside congestion. 

‘‘(b) PROGRAM ELEMENTS.—The program shall encourage the use 

of short sea transportation through the development and expansion 

of—

‘‘(1) documented vessels; 

‘‘(2) shipper utilization; 

‘‘(3) port and landside infrastructure; and 

‘‘(4) marine transportation strategies by State and local governments. 

‘‘(c) SHORT SEA TRANSPORTATION ROUTES.—The Secretary shall 

designate short sea transportation routes as extensions of the surVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00279 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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face transportation system to focus public and private efforts to use 

the waterways to relieve landside congestion along coastal corridors. The Secretary may collect and disseminate data for the designation and delineation of short sea transportation routes. ‘‘(d) PROJECT DESIGNATION.—The Secretary may designate a 

project to be a short sea transportation project if the Secretary determines that the project may— ‘‘(1) offer a waterborne alternative to available landside 

transportation services using documented vessels; and ‘‘(2) provide transportation services for passengers or freight 

(or both) that may reduce congestion on landside infrastructure 

using documented vessels. ‘‘(e) ELEMENTS OF PROGRAM.—For a short sea transportation 

project designated under this section, the Secretary may—

‘‘(1) promote the development of short sea transportation 

services; 

‘‘(2) coordinate, with ports, State departments of transportation, localities, other public agencies, and the private sector 

and on the development of landside facilities and infrastructure to support short sea transportation services; and 

‘‘(3) develop performance measures for the short sea transportation program. 

‘‘(f) MULTISTATE, STATE AND REGIONAL TRANSPORTATION PLAN- NING.—The Secretary, in consultation with Federal entities and 

State and local governments, shall develop strategies to encourage 

the use of short sea transportation for transportation of passengers 

and cargo. The Secretary shall— ‘‘(1) assess the extent to which States and local governments 

include short sea transportation and other marine transportation solutions in their transportation planning; ‘‘(2) encourage State departments of transportation to develop strategies, where appropriate, to incorporate short sea 

transportation, ferries, and other marine transportation solutions for regional and interstate transport of freight and passengers in their transportation planning; and 

‘‘(3) encourage groups of States and multi-State transportation entities to determine how short sea transportation can 

address congestion, bottlenecks, and other interstate transportation challenges. 

‘‘§ 55602. Cargo and shippers 

‘‘(a) MEMORANDUMS OF AGREEMENT.—The Secretary of Transportation shall enter into memorandums of understanding with the 

heads of other Federal entities to transport federally owned or generated cargo using a short sea transportation project designated 

under section 55601 when practical or available. 

‘‘(b) SHORT-TERM INCENTIVES.—The Secretary shall consult shippers and other participants in transportation logistics and develop 

proposals for short-term incentives to encourage the use of short 

sea transportation. 

‘‘§ 55603. Interagency coordination 

‘‘The Secretary of Transportation shall establish a board to identify and seek solutions to impediments hindering effective use of 

short sea transportation. The board shall include representatives of 


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the Environmental Protection Agency and other Federal, State, and 

local governmental entities and private sector entities. 

‘‘§ 55604. Research on short sea transportation 

‘‘The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, may conduct 

research on short sea transportation, regarding— ‘‘(1) the environmental and transportation benefits to be derived from short sea transportation alternatives for other forms 

of transportation; ‘‘(2) technology, vessel design, and other improvements that 

would reduce emissions, increase fuel economy, and lower costs 

of short sea transportation and increase the efficiency of intermodal transfers; and ‘‘(3) solutions to impediments to short sea transportation 

projects designated under section 55601. 

‘‘§ 55605. Short sea transportation defined 

‘‘In this chapter, the term ‘short sea transportation’ means the 

carriage by vessel of cargo— ‘‘(1) that is— ‘‘(A) contained in intermodal cargo containers and loaded 

by crane on the vessel; or 

‘‘(B) loaded on the vessel by means of wheeled technology; and 

‘‘(2) that is—

‘‘(A) loaded at a port in the United States and unloaded 

either at another port in the United States or at a port in 

Canada located in the Great Lakes Saint Lawrence Seaway System; or 

‘‘(B) loaded at a port in Canada located in the Great 

Lakes Saint Lawrence Seaway System and unloaded at a 

port in the United States.’’. (b) CLERICAL AMENDMENT.—The table of chapters at the beginning of subtitle V of such title is amended by inserting after the 

item relating to chapter 555 the following: 

‘‘556. Short Sea Transportation ......................................................................55601’’. 

(c) REGULATIONS.— (1) INTERIM REGULATIONS.—Not later than 90 days after the 

date of enactment of this Act, the Secretary of Transportation 

shall issue temporary regulations to implement the program 

under this section. Subchapter II of chapter 5 of title 5, United 

States Code, does not apply to a temporary regulation issued 

under this paragraph or to an amendment to such a temporary 

regulation. 

(2) FINAL REGULATIONS.—Not later than October 1, 2008, the 

Secretary of Transportation shall issue final regulations to implement the program under this section. 

SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION FUND. 

(a) DEFINITION OF QUALIFIED VESSEL.—Section 53501 of title 46, 

United States Code, is amended— (1) in paragraph (5)(A)(iii) by striking ‘‘or noncontiguous domestic’’ and inserting ‘‘noncontiguous domestic, or short sea 

transportation trade’’; and 


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(2) by inserting after paragraph (6) the following: 

‘‘(7) SHORT SEA TRANSPORTATION TRADE.—The term ‘short sea 

transportation trade’ means the carriage by vessel of cargo— ‘‘(A) that is— ‘‘(i) contained in intermodal cargo containers and 

loaded by crane on the vessel; or ‘‘(ii) loaded on the vessel by means of wheeled technology; and ‘‘(B) that is— ‘‘(i) loaded at a port in the United States and unloaded either at another port in the United States or 

at a port in Canada located in the Great Lakes Saint 

Lawrence Seaway System; or ‘‘(ii) loaded at a port in Canada located in the Great 

Lakes Saint Lawrence Seaway System and unloaded 

at a port in the United States.’’. (b) ALLOWABLE PURPOSE.—Section 53503(b) of such title is 

amended by striking ‘‘or noncontiguous domestic trade’’ and inserting ‘‘noncontiguous domestic, or short sea transportation trade’’. 

SEC. 1123. SHORT SEA TRANSPORTATION REPORT. 

Not later than one year after the date of enactment of this Act, 

the Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall submit to the 

Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Commerce, Science, and 

Transportation of the Senate a report on the short sea transportation program established under the amendments made by section 

1121. The report shall include a description of the activities conducted under the program, and any recommendations for further 

legislative or administrative action that the Secretary of Transportation considers appropriate. 

Subtitle D—Highways 

SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS. 

Section 120(c) of title 23, United States Code, is amended—

(1) in the subsection heading by striking ‘‘FOR CERTAIN SAFETY PROJECTS’’; 

(2) by striking ‘‘The Federal share’’ and inserting the following: 

‘‘(1) CERTAIN SAFETY PROJECTS.—The Federal share’’; and 

(3) by adding at the end the following: 

‘‘(2) CMAQ PROJECTS.—The Federal share payable on account of a project or program carried out under section 149 

with funds obligated in fiscal year 2008 or 2009, or both, shall 

be not less than 80 percent and, at the discretion of the State, 

may be up to 100 percent of the cost thereof.’’. 

SEC. 1132. DISTRIBUTION OF RESCISSIONS. 

(a) IN GENERAL.—Any unobligated balances of amounts that are 

appropriated from the Highway Trust Fund for a fiscal year, and 

apportioned under chapter 1 of title 23, United States Code, before, 

on, or after the date of enactment of this Act and that are rescinded in fiscal year 2008 or fiscal year 2009 shall be distributed 

by the Secretary of Transportation within each State (as defined in 

section 101 of such title) among all programs for which funds are 


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apportioned under such chapter for such fiscal year, to the extent 

sufficient funds remain available for obligation, in the ratio that 

the amount of funds apportioned for each program under such 

chapter for such fiscal year, bears to the amount of funds apportioned for all such programs under such chapter for such fiscal 

year. 

(b) ADJUSTMENTS.—A State may make adjustments to the distribution of a rescission within the State for a fiscal year under 

subsection (a) by transferring the amounts to be rescinded among 

the programs for which funds are apportioned under chapter 1 of 

title 23, United States Code, for such fiscal year, except that in 

making such adjustments the State may not rescind from any such 

program more than 110 percent of the funds to be rescinded from 

the program for the fiscal year as determined by the Secretary of 

Transportation under subsection (a). 

(c) TREATMENT OF TRANSPORTATION ENHANCEMENT SET-ASIDE

AND FUNDS SUBALLOCATED TO SUBSTATE AREAS.—Funds set aside 

under sections 133(d)(2) and 133(d)(3) of title 23, United States 

Code, shall be treated as being apportioned under chapter 1 of such 

title for purposes of subsection (a). 

SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE 

STREETS DESIGN TECHNIQUES. 

It is the sense of Congress that in constructing new roadways or 

rehabilitating existing facilities, State and local governments 

should consider policies designed to accommodate all users, including motorists, pedestrians, cyclists, transit riders, and people of all 

ages and abilities, in order to— (1) serve all surface transportation users by creating a more 

interconnected and intermodal system; 

(2) create more viable transportation options; and 

(3) facilitate the use of environmentally friendly options, 

such as public transportation, walking, and bicycling. 

TITLE XII—SMALL BUSINESS ENERGY PROGRAMS 

SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY 

EFFICIENCY. 

Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) 

is amended by adding at the end the following: ‘‘(F) EXPRESS LOANS FOR RENEWABLE ENERGY AND EN- ERGY EFFICIENCY.— ‘‘(i) DEFINITIONS.—In this subparagraph— ‘‘(I) the term ‘biomass’— ‘‘(aa) means any organic material that is 

available on a renewable or recurring basis, 

including— ‘‘(AA) agricultural crops; 

‘‘(BB) trees grown for energy production; ‘‘(CC) wood waste and wood residues; 

‘‘(DD) plants (including aquatic plants 

and grasses); ‘‘(EE) residues; 

‘‘(FF) fibers; 

‘‘(GG) animal wastes and other waste 

materials; and 


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‘‘(HH) fats, oils, and greases (including 

recycled fats, oils, and greases); and ‘‘(bb) does not include— ‘‘(AA) paper that is commonly recycled; 

or ‘‘(BB) unsegregated solid waste; ‘‘(II) the term ‘energy efficiency project’ means 

the installation or upgrading of equipment that 

results in a significant reduction in energy usage; 

and ‘‘(III) the term ‘renewable energy system’ means 

a system of energy derived from— ‘‘(aa) a wind, solar, biomass (including biodiesel), or geothermal source; or ‘‘(bb) hydrogen derived from biomass or 

water using an energy source described in 

item (aa). ‘‘(ii) LOANS.—The Administrator may make a loan 

under the Express Loan Program for the purpose of— ‘‘(I) purchasing a renewable energy system; or 

‘‘(II) carrying out an energy efficiency project for 

a small business concern.’’. 

SEC. 1202. PILOT PROGRAM FOR REDUCED 7(a) FEES FOR PURCHASE 

OF ENERGY EFFICIENT TECHNOLOGIES. 

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 

amended by adding at the end the following: ‘‘(32) LOANS FOR ENERGY EFFICIENT TECHNOLOGIES.— ‘‘(A) DEFINITIONS.—In this paragraph— ‘‘(i) the term ‘cost’ has the meaning given that term 

in section 502 of the Federal Credit Reform Act of 

1990 (2 U.S.C. 661a); ‘‘(ii) the term ‘covered energy efficiency loan’ means 

a loan—

‘‘(I) made under this subsection; and 

‘‘(II) the proceeds of which are used to purchase 

energy efficient designs, equipment, or fixtures, or 

to reduce the energy consumption of the borrower 

by 10 percent or more; and 

‘‘(iii) the term ‘pilot program’ means the pilot program established under subparagraph (B) 

‘‘(B) ESTABLISHMENT.—The Administrator shall establish 

and carry out a pilot program under which the Administrator shall reduce the fees for covered energy efficiency 

loans. 

‘‘(C) DURATION.—The pilot program shall terminate at 

the end of the second full fiscal year after the date that the 

Administrator establishes the pilot program. 

‘‘(D) MAXIMUM PARTICIPATION.—A covered energy efficiency loan shall include the maximum participation levels 

by the Administrator permitted for loans made under this 

subsection. 

‘‘(E) FEES.—

‘‘(i) IN GENERAL.—The fee on a covered energy efficiency loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18). 


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‘‘(ii) WAIVER.—The Administrator may waive clause 

(i) for a fiscal year if— ‘‘(I) for the fiscal year before that fiscal year, the 

annual rate of default of covered energy efficiency 

loans exceeds that of loans made under this subsection that are not covered energy efficiency 

loans; ‘‘(II) the cost to the Administration of making 

loans under this subsection is greater than zero 

and such cost is directly attributable to the cost of 

making covered energy efficiency loans; and ‘‘(III) no additional sources of revenue authority 

are available to reduce the cost of making loans 

under this subsection to zero. ‘‘(iii) EFFECT OF WAIVER.—If the Administrator 

waives the reduction of fees under clause (ii), the Administrator— ‘‘(I) shall not assess or collect fees in an amount 

greater than necessary to ensure that the cost of 

the program under this subsection is not greater 

than zero; and ‘‘(II) shall reinstate the fee reductions under 

clause (i) when the conditions in clause (ii) no 

longer apply. ‘‘(iv) NO INCREASE OF FEES.—The Administrator 

shall not increase the fees under paragraph (18) on 

loans made under this subsection that are not covered 

energy efficiency loans as a direct result of the pilot 

program. ‘‘(F) GAO REPORT.— ‘‘(i) IN GENERAL.—Not later than 1 year after the 

date that the pilot program terminates, the Comptroller General of the United States shall submit to 

the Committee on Small Business of the House of Representatives and the Committee on Small Business 

and Entrepreneurship of the Senate a report on the 

pilot program. ‘‘(ii) CONTENTS.—The report submitted under clause 

(i) shall include— ‘‘(I) the number of covered energy efficiency 

loans for which fees were reduced under the pilot 

program; 

‘‘(II) a description of the energy efficiency savings with the pilot program; 

‘‘(III) a description of the impact of the pilot program on the program under this subsection; 

‘‘(IV) an evaluation of the efficacy and potential 

fraud and abuse of the pilot program; and 

‘‘(V) recommendations for improving the pilot 

program.’’. 

SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY. 

(a) DEFINITIONS.—In this section—

(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 

the Small Business Administration and the Administrator 

thereof, respectively; 


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(2) the term ‘‘association’’ means the association of small 

business development centers established under section 

21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)); 

(3) the term ‘‘disability’’ has the meaning given that term in 

section 3 of the Americans with Disabilities Act of 1990 (42 

U.S.C. 12102); 

(4) the term ‘‘Efficiency Program’’ means the Small Business 

Energy Efficiency Program established under subsection (c)(1); 

(5) the term ‘‘electric utility’’ has the meaning given that 

term in section 3 of the Public Utility Regulatory Policies Act 

of 1978 (16 U.S.C. 2602); 

(6) the term ‘‘high performance green building’’ has the 

meaning given that term in section 401; 

(7) the term ‘‘on-bill financing’’ means a low interest or no 

interest financing agreement between a small business concern 

and an electric utility for the purchase or installation of equipment, under which the regularly scheduled payment of that 

small business concern to that electric utility is not reduced by 

the amount of the reduction in cost attributable to the new 

equipment and that amount is credited to the electric utility, 

until the cost of the purchase or installation is repaid; 

(8) the term ‘‘small business concern’’ has the same meaning 

as in section 3 of the Small Business Act (15 U.S.C. 632); 

(9) the term ‘‘small business development center’’ means a 

small business development center described in section 21 of 

the Small Business Act (15 U.S.C. 648); 

(10) the term ‘‘telecommuting’’ means the use of telecommunications to perform work functions under circumstances which reduce or eliminate the need to commute; 

(11) the term ‘‘Telecommuting Pilot Program’’ means the 

pilot program established under subsection (d)(1)(A); and 

(12) the term ‘‘veteran’’ has the meaning given that term in 

section 101 of title 38, United States Code. 

(b) IMPLEMENTATION OF SMALL BUSINESS ENERGY EFFICIENCY

PROGRAM.—

(1) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Administrator shall promulgate final 

rules establishing the Government-wide program authorized 

under subsection (d) of section 337 of the Energy Policy and 

Conservation Act (42 U.S.C. 6307) that ensure compliance with 

that subsection by not later than 6 months after such date of 

enactment. 

(2) PROGRAM REQUIRED.—The Administrator shall develop 

and coordinate a Government-wide program, building on the 

Energy Star for Small Business program, to assist small business concerns in—

(A) becoming more energy efficient; 

(B) understanding the cost savings from improved energy efficiency; and 

(C) identifying financing options for energy efficiency upgrades. 

(3) CONSULTATION AND COOPERATION.—The program required by paragraph (2) shall be developed and coordinated—


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(A) in consultation with the Secretary of Energy and the 

Administrator of the Environmental Protection Agency; 

and 

(B) in cooperation with any entities the Administrator 

considers appropriate, such as industry trade associations, 

industry members, and energy efficiency organizations. 

(4) AVAILABILITY OF INFORMATION.—The Administrator shall 

make available the information and materials developed under 

the program required by paragraph (2) to—

(A) small business concerns, including smaller design, 

engineering, and construction firms; and 

(B) other Federal programs for energy efficiency, such as 

the Energy Star for Small Business program. 

(5) STRATEGY AND REPORT.—

(A) STRATEGY REQUIRED.—The Administrator shall develop a strategy to educate, encourage, and assist small 

business concerns in adopting energy efficient building fixtures and equipment. 

(B) REPORT.—Not later than December 31, 2008, the Administrator shall submit to Congress a report containing a 

plan to implement the strategy developed under subparagraph (A). 

(c) SMALL BUSINESS SUSTAINABILITY INITIATIVE.—

(1) AUTHORITY.—The Administrator shall establish a Small 

Business Energy Efficiency Program to provide energy efficiency assistance to small business concerns through small 

business development centers. 

(2) SMALL BUSINESS DEVELOPMENT CENTERS.—

(A) IN GENERAL.—In carrying out the Efficiency Program, the Administrator shall enter into agreements with 

small business development centers under which such centers shall—

(i) provide access to information and resources on 

energy efficiency practices, including on-bill financing 

options; 

(ii) conduct training and educational activities; 

(iii) offer confidential, free, one-on-one, in-depth energy audits to the owners and operators of small business concerns regarding energy efficiency practices; 

(iv) give referrals to certified professionals and other 

providers of energy efficiency assistance who meet 

such standards for educational, technical, and professional competency as the Administrator shall establish; 

(v) to the extent not inconsistent with controlling 

State public utility regulations, act as a facilitator between small business concerns, electric utilities, lenders, and the Administration to facilitate on-bill financing arrangements; 

(vi) provide necessary support to small business concerns to—

(I) evaluate energy efficiency opportunities and 

opportunities to design or construct high performance green buildings; 


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(II) evaluate renewable energy sources, such as 

the use of solar and small wind to supplement 

power consumption; 

(III) secure financing to achieve energy efficiency or to design or construct high performance 

green buildings; and 

(IV) implement energy efficiency projects; 

(vii) assist owners of small business concerns with 

the development and commercialization of clean technology products, goods, services, and processes that 

use renewable energy sources, dramatically reduce the 

use of natural resources, and cut or eliminate greenhouse gas emissions through—

(I) technology assessment; 

(II) intellectual property; 

(III) Small Business Innovation Research submissions under section 9 of the Small Business 

Act (15 U.S.C. 638); 

(IV) strategic alliances; 

(V) business model development; and 

(VI) preparation for investors; and 

(viii) help small business concerns improve environmental performance by shifting to less hazardous materials and reducing waste and emissions, including by 

providing assistance for small business concerns to 

adapt the materials they use, the processes they operate, and the products and services they produce. 

(B) REPORTS.—Each small business development center 

participating in the Efficiency Program shall submit to the 

Administrator and the Administrator of the Environmental 

Protection Agency an annual report that includes—

(i) a summary of the energy efficiency assistance 

provided by that center under the Efficiency Program; 

(ii) the number of small business concerns assisted 

by that center under the Efficiency Program; 

(iii) statistics on the total amount of energy saved as 

a result of assistance provided by that center under 

the Efficiency Program; and 

(iv) any additional information determined necessary by the Administrator, in consultation with the 

association. 

(C) REPORTS TO CONGRESS.—Not later than 60 days after 

the date on which all reports under subparagraph (B) relating to a year are submitted, the Administrator shall 

submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report summarizing 

the information regarding the Efficiency Program submitted by small business development centers participating in that program. 

(3) ELIGIBILITY.—A small business development center shall 

be eligible to participate in the Efficiency Program only if that 

center is certified under section 21(k)(2) of the Small Business 

Act (15 U.S.C. 648(k)(2)). 


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(4) SELECTION OF PARTICIPATING STATE PROGRAMS.—From 

among small business development centers submitting applications to participate in the Efficiency Program, the Administrator—

(A) shall, to the maximum extent practicable, select 

small business development centers in such a manner so 

as to promote a nationwide distribution of centers participating in the Efficiency Program; and 

(B) may not select more than 1 small business development center in a State to participate in the Efficiency Program. 

(5) MATCHING REQUIREMENT.—Subparagraphs (A) and (B) of 

section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) 

shall apply to assistance made available under the Efficiency 

Program. 

(6) GRANT AMOUNTS.—Each small business development center selected to participate in the Efficiency Program under 

paragraph (4) shall be eligible to receive a grant in an amount 

equal to—

(A) not less than $100,000 in each fiscal year; and 

(B) not more than $300,000 in each fiscal year. 

(7) EVALUATION AND REPORT.—The Comptroller General of 

the United States shall— (A) not later than 30 months after the date of disbursement of the first grant under the Efficiency Program, initiate an evaluation of that program; and 

(B) not later than 6 months after the date of the initiation of the evaluation under subparagraph (A), submit to 

the Administrator, the Committee on Small Business and 

Entrepreneurship of the Senate, and the Committee on 

Small Business of the House of Representatives, a report 

containing— (i) the results of the evaluation; and 

(ii) any recommendations regarding whether the Efficiency Program, with or without modification, should 

be extended to include the participation of all small 

business development centers. 

(8) GUARANTEE.—To the extent not inconsistent with State 

law, the Administrator may guarantee the timely payment of 

a loan made to a small business concern through an on-bill financing agreement on such terms and conditions as the Administrator shall establish through a formal rule making, after 

providing notice and an opportunity for comment. 

(9) IMPLEMENTATION.—Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1) of the Small Business Act 

(15 U.S.C. 648(a)(1)), the Administrator may make grants or 

enter into cooperative agreements to carry out this subsection. 

(10) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to make 

grants and enter into cooperative agreements to carry out this 

subsection. 

(11) TERMINATION.—The authority under this subsection 

shall terminate 4 years after the date of disbursement of the 

first grant under the Efficiency Program. 


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(d) SMALL BUSINESS TELECOMMUTING.—

(1) PILOT PROGRAM.—

(A) IN GENERAL.—The Administrator shall conduct, in 

not more than 5 of the regions of the Administration, a 

pilot program to provide information regarding telecommuting to employers that are small business concerns and 

to encourage such employers to offer telecommuting options to employees. 

(B) SPECIAL OUTREACH TO INDIVIDUALS WITH DISABILITIES.—In carrying out the Telecommuting Pilot Program, 

the Administrator shall make a concerted effort to provide 

information to—

(i) small business concerns owned by or employing 

individuals with disabilities, particularly veterans who 

are individuals with disabilities; 

(ii) Federal, State, and local agencies having knowledge and expertise in assisting individuals with disabilities, including veterans who are individuals with 

disabilities; and 

(iii) any group or organization, the primary purpose 

of which is to aid individuals with disabilities or veterans who are individuals with disabilities. 

(C) PERMISSIBLE ACTIVITIES.—In carrying out the Telecommuting Pilot Program, the Administrator may—

(i) produce educational materials and conduct presentations designed to raise awareness in the small 

business community of the benefits and the ease of 

telecommuting; 

(ii) conduct outreach—

(I) to small business concerns that are considering offering telecommuting options; and 

(II) as provided in subparagraph (B); and 

(iii) acquire telecommuting technologies and equipment to be used for demonstration purposes. 

(D) SELECTION OF REGIONS.—In determining which regions will participate in the Telecommuting Pilot Program, 

the Administrator shall give priority consideration to regions in which Federal agencies and private-sector employers have demonstrated a strong regional commitment to 

telecommuting. 

(2) REPORT TO CONGRESS.—Not later than 2 years after the 

date on which funds are first appropriated to carry out this 

subsection, the Administrator shall transmit to the Committee 

on Small Business and Entrepreneurship of the Senate and the 

Committee on Small Business of the House of Representatives 

a report containing the results of an evaluation of the Telecommuting Pilot Program and any recommendations regarding 

whether the pilot program, with or without modification, 

should be extended to include the participation of all regions 

of the Administration. 

(3) TERMINATION.—The Telecommuting Pilot Program shall 

terminate 4 years after the date on which funds are first appropriated to carry out this subsection. 


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(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Administration $5,000,000 to carry 

out this subsection. 

(e) ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.—Section 9 

of the Small Business Act (15 U.S.C. 638) is amended by adding 

at the end the following: ‘‘(z) ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.— ‘‘(1) FEDERAL AGENCY ENERGY-RELATED PRIORITY.—In carrying out its duties under this section relating to SBIR and 

STTR solicitations by Federal departments and agencies, the 

Administrator shall— ‘‘(A) ensure that such departments and agencies give 

high priority to small business concerns that participate in 

or conduct energy efficiency or renewable energy system 

research and development projects; and ‘‘(B) include in the annual report to Congress under subsection (b)(7) a determination of whether the priority described in subparagraph (A) is being carried out. ‘‘(2) CONSULTATION REQUIRED.—The Administrator shall consult with the heads of other Federal departments and agencies 

in determining whether priority has been given to small business concerns that participate in or conduct energy efficiency 

or renewable energy system research and development 

projects, as required by this subsection. 

‘‘(3) GUIDELINES.—The Administrator shall, as soon as is 

practicable after the date of enactment of this subsection, issue 

guidelines and directives to assist Federal agencies in meeting 

the requirements of this subsection. ‘‘(4) DEFINITIONS.—In this subsection—

‘‘(A) the term ‘biomass’—

‘‘(i) means any organic material that is available on 

a renewable or recurring basis, including—

‘‘(I) agricultural crops; 

‘‘(II) trees grown for energy production; 

‘‘(III) wood waste and wood residues; 

‘‘(IV) plants (including aquatic plants and 

grasses); ‘‘(V) residues; 

‘‘(VI) fibers; 

‘‘(VII) animal wastes and other waste materials; 

and ‘‘(VIII) fats, oils, and greases (including recycled 

fats, oils, and greases); and ‘‘(ii) does not include— ‘‘(I) paper that is commonly recycled; or 

‘‘(II) unsegregated solid waste; ‘‘(B) the term ‘energy efficiency project’ means the installation or upgrading of equipment that results in a significant reduction in energy usage; and ‘‘(C) the term ‘renewable energy system’ means a system 

of energy derived from—

‘‘(i) a wind, solar, biomass (including biodiesel), or 

geothermal source; or 

‘‘(ii) hydrogen derived from biomass or water using 

an energy source described in clause (i).’’. 


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SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY EFFICIENT TECHNOLOGIES AND PURCHASES. 

(a) ELIGIBILITY FOR ENERGY EFFICIENCY PROJECTS.—Section 

501(d)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 

695(d)(3)) is amended—

(1) in subparagraph (G) by striking ‘‘or’’ at the end; 

(2) in subparagraph (H) by striking the period at the end and 

inserting a comma; 

(3) by inserting after subparagraph (H) the following: 

‘‘(I) reduction of energy consumption by at least 10 percent, 

‘‘(J) increased use of sustainable design, including designs that reduce the use of greenhouse gas emitting fossil 

fuels, or low-impact design to produce buildings that reduce the use of non-renewable resources and minimize environmental impact, or 

‘‘(K) plant, equipment and process upgrades of renewable energy sources such as the small-scale production of 

energy for individual buildings or communities consumption, commonly known as micropower, or renewable fuels 

producers including biodiesel and ethanol producers.’’; and 

(4) by adding at the end the following: ‘‘In subparagraphs (J) 

and (K), terms have the meanings given those terms under the 

Leadership in Energy and Environmental Design (LEED) 

standard for green building certification, as determined by the 

Administrator.’’. 

(b) LOANS FOR PLANT PROJECTS USED FOR ENERGY-EFFICIENT

PURPOSES.—Section 502(2)(A) of the Small Business Investment 

Act of 1958 (15 U.S.C. 696(2)(A)) is amended—

(1) in clause (ii) by striking ‘‘and’’ at the end; 

(2) in clause (iii) by striking the period at the end and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(iv) $4,000,000 for each project that reduces the 

borrower’s energy consumption by at least 10 percent; 

and 

‘‘(v) $4,000,000 for each project that generates renewable energy or renewable fuels, such as biodiesel 

or ethanol production.’’. 

SEC. 1205. ENERGY SAVING DEBENTURES. 

(a) IN GENERAL.—Section 303 of the Small Business Investment 

Act of 1958 (15 U.S.C. 683) is amended by adding at the end the 

following: 

‘‘(k) ENERGY SAVING DEBENTURES.—In addition to any other authority under this Act, a small business investment company licensed in the first fiscal year after the date of enactment of this 

subsection or any fiscal year thereafter may issue Energy Saving 

debentures.’’. 

(b) DEFINITIONS.—Section 103 of the Small Business Investment 

Act of 1958 (15 U.S.C. 662) is amended—

(1) in paragraph (16), by striking ‘‘and’’ at the end; 

(2) in paragraph (17), by striking the period at the end and 

inserting a semicolon; and 

(3) by adding at the end the following: 


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‘‘(18) the term ‘Energy Saving debenture’ means a deferred 

interest debenture that— ‘‘(A) is issued at a discount; 

‘‘(B) has a 5-year maturity or a 10-year maturity; 

‘‘(C) requires no interest payment or annual charge for 

the first 5 years; ‘‘(D) is restricted to Energy Saving qualified investments; and ‘‘(E) is issued at no cost (as defined in section 502 of the 

Credit Reform Act of 1990) with respect to purchasing and 

guaranteeing the debenture; and ‘‘(19) the term ‘Energy Saving qualified investment’ means 

investment in a small business concern that is primarily engaged in researching, manufacturing, developing, or providing 

products, goods, or services that reduce the use or consumption 

of non-renewable energy resources.’’. 

SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES. 

(a) MAXIMUM LEVERAGE.—Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by 

adding at the end the following: ‘‘(D) INVESTMENTS IN ENERGY SAVING SMALL BUSI- NESSES.—

‘‘(i) IN GENERAL.—Subject to clause (ii), in calculating the outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall exclude the amount of the cost basis of any Energy Saving qualified investment in a smaller enterprise made 

in the first fiscal year after the date of enactment of 

this subparagraph or any fiscal year thereafter by a 

company licensed in the applicable fiscal year. ‘‘(ii) LIMITATIONS.— ‘‘(I) AMOUNT OF EXCLUSION.—The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company. ‘‘(II) MAXIMUM INVESTMENT.—A company shall 

not make an Energy Saving qualified investment 

in any one entity in an amount equal to more 

than 20 percent of the private capital of that company. ‘‘(III) OTHER TERMS.—The exclusion of amounts 

under clause (i) shall be subject to such terms as 

the Administrator may impose to ensure that 

there is no cost (as that term is defined in section 

502 of the Federal Credit Reform Act of 1990 (2 

U.S.C. 661a)) with respect to purchasing or guaranteeing any debenture involved.’’. 

(b) MAXIMUM AGGREGATE AMOUNT OF LEVERAGE.—Section 

303(b)(4) of the Small Business Investment Act of 1958 (15 U.S.C. 

303(b)(4)) is amended by adding at the end the following: 

‘‘(E) INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.—

‘‘(i) IN GENERAL.—Subject to clause (ii), in calculating the aggregate outstanding leverage of a company for purposes of subparagraph (A), the AdminisVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00293 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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trator shall exclude the amount of the cost basis of 

any Energy Saving qualified investment in a smaller 

enterprise made in the first fiscal year after the date 

of enactment of this subparagraph or any fiscal year 

thereafter by a company licensed in the applicable fiscal year. 

‘‘(ii) LIMITATIONS.—

‘‘(I) AMOUNT OF EXCLUSION.—The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company. 

‘‘(II) MAXIMUM INVESTMENT.—A company shall 

not make an Energy Saving qualified investment 

in any one entity in an amount equal to more 

than 20 percent of the private capital of that company. 

‘‘(III) OTHER TERMS.—The exclusion of amounts 

under clause (i) shall be subject to such terms as 

the Administrator may impose to ensure that 

there is no cost (as that term is defined in section 

502 of the Federal Credit Reform Act of 1990 (2 

U.S.C. 661a)) with respect to purchasing or guaranteeing any debenture involved.’’. 

SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY. 

Title III of the Small Business Investment Act of 1958 (15 U.S.C. 

681 et seq.) is amended by adding at the end the following: 

‘‘PART C—RENEWABLE FUEL CAPITAL 

INVESTMENT PILOT PROGRAM 

‘‘SEC. 381. DEFINITIONS. 

‘‘In this part: 

‘‘(1) OPERATIONAL ASSISTANCE.—The term ‘operational assistance’ means management, marketing, and other technical assistance that assists a small business concern with business 

development. 

‘‘(2) PARTICIPATION AGREEMENT.—The term ‘participation 

agreement’ means an agreement, between the Administrator 

and a company granted final approval under section 384(e), 

that—

‘‘(A) details the operating plan and investment criteria of 

the company; and 

‘‘(B) requires the company to make investments in smaller enterprises primarily engaged in researching, manufacturing, developing, producing, or bringing to market goods, 

products, or services that generate or support the production of renewable energy. 

‘‘(3) RENEWABLE ENERGY.—The term ‘renewable energy’ means energy derived from resources that are regenerative or 

that cannot be depleted, including solar, wind, ethanol, and 

biodiesel fuels. ‘‘(4) RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.—The 

term ‘Renewable Fuel Capital Investment company’ means a 

company—


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‘‘(A) that—

‘‘(i) has been granted final approval by the Administrator under section 384(e); and 

‘‘(ii) has entered into a participation agreement with 

the Administrator; or 

‘‘(B) that has received conditional approval under section 

384(c). 

‘‘(5) STATE.—The term ‘State’ means each of the several 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other 

commonwealth, territory, or possession of the United States. 

‘‘(6) VENTURE CAPITAL.—The term ‘venture capital’ means 

capital in the form of equity capital investments, as that term 

is defined in section 303(g)(4). 

‘‘SEC. 382. PURPOSES. 

‘‘The purposes of the Renewable Fuel Capital Investment Program established under this part are—

‘‘(1) to promote the research, development, manufacture, production, and bringing to market of goods, products, or services 

that generate or support the production of renewable energy by 

encouraging venture capital investments in smaller enterprises 

primarily engaged such activities; and 

‘‘(2) to establish a venture capital program, with the mission 

of addressing the unmet equity investment needs of smaller 

enterprises engaged in researching, developing, manufacturing, 

producing, and bringing to market goods, products, or services 

that generate or support the production of renewable energy, 

to be administered by the Administrator—

‘‘(A) to enter into participation agreements with Renewable Fuel Capital Investment companies; 

‘‘(B) to guarantee debentures of Renewable Fuel Capital 

Investment companies to enable each such company to 

make venture capital investments in smaller enterprises 

engaged in the research, development, manufacture, production, and bringing to market of goods, products, or services that generate or support the production of renewable 

energy; and 

‘‘(C) to make grants to Renewable Fuel Investment Capital companies, and to other entities, for the purpose of 

providing operational assistance to smaller enterprises financed, or expected to be financed, by such companies. 

‘‘SEC. 383. ESTABLISHMENT. 

‘‘The Administrator shall establish a Renewable Fuel Capital Investment Program, under which the Administrator may—

‘‘(1) enter into participation agreements for the purposes described in section 382; and 

‘‘(2) guarantee the debentures issued by Renewable Fuel 

Capital Investment companies as provided in section 385. 

‘‘SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT 

COMPANIES. 

‘‘(a) ELIGIBILITY.—A company is eligible to apply to be designated 

as a Renewable Fuel Capital Investment company if the company—


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‘‘(1) is a newly formed for-profit entity or a newly formed forprofit subsidiary of an existing entity; ‘‘(2) has a management team with experience in alternative 

energy financing or relevant venture capital financing; and ‘‘(3) has a primary objective of investment in smaller enterprises that research, manufacture, develop, produce, or bring to 

market goods, products, or services that generate or support 

the production of renewable energy. ‘‘(b) APPLICATION.—A company desiring to be designated as a Renewable Fuel Capital Investment company shall submit an application to the Administrator that includes— ‘‘(1) a business plan describing how the company intends to 

make successful venture capital investments in smaller enterprises primarily engaged in the research, manufacture, development, production, or bringing to market of goods, products, 

or services that generate or support the production of renewable energy; ‘‘(2) information regarding the relevant venture capital qualifications and general reputation of the management of the 

company; ‘‘(3) a description of how the company intends to seek to address the unmet capital needs of the smaller enterprises 

served; ‘‘(4) a proposal describing how the company intends to use 

the grant funds provided under this part to provide operational 

assistance to smaller enterprises financed by the company, including information regarding whether the company has employees with appropriate professional licenses or will contract 

with another entity when the services of such an individual are 

necessary; ‘‘(5) with respect to binding commitments to be made to the 

company under this part, an estimate of the ratio of cash to inkind contributions; ‘‘(6) a description of whether and to what extent the company 

meets the criteria under subsection (c)(2) and the objectives of 

the program established under this part; 

‘‘(7) information regarding the management and financial 

strength of any parent firm, affiliated firm, or any other firm 

essential to the success of the business plan of the company; 

and 

‘‘(8) such other information as the Administrator may require. 

‘‘(c) CONDITIONAL APPROVAL.—

‘‘(1) IN GENERAL.—From among companies submitting applications under subsection (b), the Administrator shall conditionally approve companies to operate as Renewable Fuel Capital Investment companies. 

‘‘(2) SELECTION CRITERIA.—In conditionally approving companies under paragraph (1), the Administrator shall consider—

‘‘(A) the likelihood that the company will meet the goal 

of its business plan; 

‘‘(B) the experience and background of the management 

team of the company; 

‘‘(C) the need for venture capital investments in the geographic areas in which the company intends to invest; 


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‘‘(D) the extent to which the company will concentrate its 

activities on serving the geographic areas in which it intends to invest; 

‘‘(E) the likelihood that the company will be able to satisfy the conditions under subsection (d); 

‘‘(F) the extent to which the activities proposed by the 

company will expand economic opportunities in the geographic areas in which the company intends to invest; 

‘‘(G) the strength of the proposal by the company to provide operational assistance under this part as the proposal 

relates to the ability of the company to meet applicable 

cash requirements and properly use in-kind contributions, 

including the use of resources for the services of licensed 

professionals, when necessary, whether provided by employees or contractors; and 

‘‘(H) any other factor determined appropriate by the Administrator. 

‘‘(3) NATIONWIDE DISTRIBUTION.—From among companies 

submitting applications under subsection (b), the Administrator shall consider the selection criteria under paragraph (2) 

and shall, to the maximum extent practicable, approve at least 

one company from each geographic region of the Administration. 

‘‘(d) REQUIREMENTS TO BE MET FOR FINAL APPROVAL.—

‘‘(1) IN GENERAL.—The Administrator shall grant each conditionally approved company 2 years to satisfy the requirements 

of this subsection. 

‘‘(2) CAPITAL REQUIREMENT.—Each conditionally approved 

company shall raise not less than $3,000,000 of private capital 

or binding capital commitments from 1 or more investors 

(which shall not be departments or agencies of the Federal 

Government) who meet criteria established by the Administrator. 

‘‘(3) NONADMINISTRATION RESOURCES FOR OPERATIONAL ASSISTANCE.—

‘‘(A) IN GENERAL.—In order to provide operational assistance to smaller enterprises expected to be financed by the 

company, each conditionally approved company shall have 

binding commitments (for contribution in cash or inkind)—

‘‘(i) from sources other than the Administration that 

meet criteria established by the Administrator; and 

‘‘(ii) payable or available over a multiyear period determined appropriate by the Administrator (not to exceed 10 years). 

‘‘(B) EXCEPTION.—The Administrator may, in the discretion of the Administrator and based upon a showing of 

special circumstances and good cause, consider an applicant to have satisfied the requirements of subparagraph 

(A) if the applicant has—

‘‘(i) a viable plan that reasonably projects the capacity of the applicant to raise the amount (in cash or inkind) required under subparagraph (A); and 


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‘‘(ii) binding commitments in an amount equal to not 

less than 20 percent of the total amount required 

under paragraph (A). 

‘‘(C) LIMITATION.—The total amount of a in-kind contributions by a company shall be not more than 50 percent 

of the total contributions by a company. 

‘‘(e) FINAL APPROVAL; DESIGNATION.—The Administrator shall, 

with respect to each applicant conditionally approved under subsection (c)—

‘‘(1) grant final approval to the applicant to operate as a Renewable Fuel Capital Investment company under this part and 

designate the applicant as such a company, if the applicant—

‘‘(A) satisfies the requirements of subsection (d) on or before the expiration of the time period described in that 

subsection; and 

‘‘(B) enters into a participation agreement with the Administrator; or 

‘‘(2) if the applicant fails to satisfy the requirements of subsection (d) on or before the expiration of the time period described in paragraph (1) of that subsection, revoke the conditional approval granted under that subsection. 

‘‘SEC. 385. DEBENTURES. 

‘‘(a) IN GENERAL.—The Administrator may guarantee the timely 

payment of principal and interest, as scheduled, on debentures 

issued by any Renewable Fuel Capital Investment company. 

‘‘(b) TERMS AND CONDITIONS.—The Administrator may make 

guarantees under this section on such terms and conditions as it 

determines appropriate, except that—

‘‘(1) the term of any debenture guaranteed under this section 

shall not exceed 15 years; and 

‘‘(2) a debenture guaranteed under this section—

‘‘(A) shall carry no front-end or annual fees; 

‘‘(B) shall be issued at a discount; 

‘‘(C) shall require no interest payments during the 5- 

year period beginning on the date the debenture is issued; 

‘‘(D) shall be prepayable without penalty after the end of 

the 1-year period beginning on the date the debenture is 

issued; and 

‘‘(E) shall require semiannual interest payments after 

the period described in subparagraph (C). 

‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full 

faith and credit of the United States is pledged to pay all amounts 

that may be required to be paid under any guarantee under this 

part. 

‘‘(d) MAXIMUM GUARANTEE.—

‘‘(1) IN GENERAL.—Under this section, the Administrator may 

guarantee the debentures issued by a Renewable Fuel Capital 

Investment company only to the extent that the total face 

amount of outstanding guaranteed debentures of such company 

does not exceed 150 percent of the private capital of the company, as determined by the Administrator. 

‘‘(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For the purposes of paragraph (1), private capital shall include capital 

that is considered to be Federal funds, if such capital is conVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00298 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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tributed by an investor other than a department or agency of 

the Federal Government. 

‘‘SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES. 

‘‘(a) ISSUANCE.—The Administrator may issue trust certificates 

representing ownership of all or a fractional part of debentures 

issued by a Renewable Fuel Capital Investment company and guaranteed by the Administrator under this part, if such certificates are 

based on and backed by a trust or pool approved by the Administrator and composed solely of guaranteed debentures. ‘‘(b) GUARANTEE.— ‘‘(1) IN GENERAL.—The Administrator may, under such terms 

and conditions as it determines appropriate, guarantee the 

timely payment of the principal of and interest on trust certificates issued by the Administrator or its agents for purposes of 

this section. ‘‘(2) LIMITATION.—Each guarantee under this subsection 

shall be limited to the extent of principal and interest on the 

guaranteed debentures that compose the trust or pool. ‘‘(3) PREPAYMENT OR DEFAULT.—If a debenture in a trust or 

pool is prepaid, or in the event of default of such a debenture, 

the guarantee of timely payment of principal and interest on 

the trust certificates shall be reduced in proportion to the 

amount of principal and interest such prepaid debenture represents in the trust or pool. Interest on prepaid or defaulted 

debentures shall accrue and be guaranteed by the Administrator only through the date of payment of the guarantee. At 

any time during its term, a trust certificate may be called for 

redemption due to prepayment or default of all debentures. ‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full 

faith and credit of the United States is pledged to pay all amounts 

that may be required to be paid under any guarantee of a trust certificate issued by the Administrator or its agents under this section. ‘‘(d) FEES.—The Administrator shall not collect a fee for any 

guarantee of a trust certificate under this section, but any agent 

of the Administrator may collect a fee approved by the Administrator for the functions described in subsection (f)(2). ‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.— ‘‘(1) SUBROGATION.—If the Administrator pays a claim under 

a guarantee issued under this section, it shall be subrogated 

fully to the rights satisfied by such payment. 

‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, or local law 

shall preclude or limit the exercise by the Administrator of its 

ownership rights in the debentures residing in a trust or pool 

against which trust certificates are issued under this section. 

‘‘(f) MANAGEMENT AND ADMINISTRATION.—

‘‘(1) REGISTRATION.—The Administrator may provide for a 

central registration of all trust certificates issued under this 

section. 

‘‘(2) CONTRACTING OF FUNCTIONS.—

‘‘(A) IN GENERAL.—The Administrator may contract with 

an agent or agents to carry out on behalf of the Administrator the pooling and the central registration functions 

provided for in this section, including, not withstanding 

any other provision of law—


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‘‘(i) maintenance, on behalf of and under the direction of the Administrator, of such commercial bank accounts or investments in obligations of the United 

States as may be necessary to facilitate the creation of 

trusts or pools backed by debentures guaranteed 

under this part; and 

‘‘(ii) the issuance of trust certificates to facilitate the 

creation of such trusts or pools. 

‘‘(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—Any 

agent performing functions on behalf of the Administrator 

under this paragraph shall provide a fidelity bond or insurance in such amounts as the Administrator determines 

to be necessary to fully protect the interests of the United 

States. 

‘‘(3) REGULATION OF BROKERS AND DEALERS.—The Administrator may regulate brokers and dealers in trust certificates 

issued under this section. 

‘‘(4) ELECTRONIC REGISTRATION.—Nothing in this subsection 

may be construed to prohibit the use of a book-entry or other 

electronic form of registration for trust certificates issued 

under this section. 

‘‘SEC. 387. FEES. 

‘‘(a) IN GENERAL.—Except as provided in section 386(d), the Administrator may charge such fees as it determines appropriate with 

respect to any guarantee or grant issued under this part, in an 

amount established annually by the Administrator, as necessary to 

reduce to zero the cost (as defined in section 502 of the Federal 

Credit Reform Act of 1990) to the Administration of purchasing and 

guaranteeing debentures under this part, which amounts shall be 

paid to and retained by the Administration. 

‘‘(b) OFFSET.—The Administrator may, as provided by section 

388, offset fees charged and collected under subsection (a). 

‘‘SEC. 388. FEE CONTRIBUTION. 

‘‘(a) IN GENERAL.—To the extent that amounts are made available to the Administrator for the purpose of fee contributions, the 

Administrator shall contribute to fees paid by the Renewable Fuel 

Capital Investment companies under section 387. 

‘‘(b) ANNUAL ADJUSTMENT.—Each fee contribution under subsection (a) shall be effective for 1 fiscal year and shall be adjusted 

as necessary for each fiscal year thereafter to ensure that amounts 

under subsection (a) are fully used. The fee contribution for a fiscal 

year shall be based on the outstanding commitments made and the 

guarantees and grants that the Administrator projects will be 

made during that fiscal year, given the program level authorized 

by law for that fiscal year and any other factors that the Administrator determines appropriate. 

‘‘SEC. 389. OPERATIONAL ASSISTANCE GRANTS. 

‘‘(a) IN GENERAL.—

‘‘(1) AUTHORITY.—The Administrator may make grants to Renewable Fuel Capital Investment companies to provide operational assistance to smaller enterprises financed, or expected 

to be financed, by such companies or other entities. 


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‘‘(2) TERMS.—A grant under this subsection shall be made 

over a multiyear period not to exceed 10 years, under such 

other terms as the Administrator may require. ‘‘(3) GRANT AMOUNT.—The amount of a grant made under 

this subsection to a Renewable Fuel Capital Investment company shall be equal to the lesser of— ‘‘(A) 10 percent of the resources (in cash or in kind) 

raised by the company under section 384(d)(2); or ‘‘(B) $1,000,000. ‘‘(4) PRO RATA REDUCTIONS.—If the amount made available to 

carry out this section is insufficient for the Administrator to 

provide grants in the amounts provided for in paragraph (3), 

the Administrator shall make pro rata reductions in the 

amounts otherwise payable to each company and entity under 

such paragraph. ‘‘(5) GRANTS TO CONDITIONALLY APPROVED COMPANIES.— ‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and (C), 

upon the request of a company conditionally approved 

under section 384(c), the Administrator shall make a grant 

to the company under this subsection. ‘‘(B) REPAYMENT BY COMPANIES NOT APPROVED.—If a 

company receives a grant under this paragraph and does 

not enter into a participation agreement for final approval, 

the company shall, subject to controlling Federal law, 

repay the amount of the grant to the Administrator. ‘‘(C) DEDUCTION OF GRANT TO APPROVED COMPANY.—If a 

company receives a grant under this paragraph and receives final approval under section 384(e), the Administrator shall deduct the amount of the grant from the total 

grant amount the company receives for operational assistance. ‘‘(D) AMOUNT OF GRANT.—No company may receive a grant of more than $100,000 under this paragraph. ‘‘(b) SUPPLEMENTAL GRANTS.— ‘‘(1) IN GENERAL.—The Administrator may make supplemental grants to Renewable Fuel Capital Investment companies and to other entities, as authorized by this part, under 

such terms as the Administrator may require, to provide additional operational assistance to smaller enterprises financed, or 

expected to be financed, by the companies. ‘‘(2) MATCHING REQUIREMENT.—The Administrator may require, as a condition of any supplemental grant made under 

this subsection, that the company or entity receiving the grant 

provide from resources (in a cash or in kind), other then those 

provided by the Administrator, a matching contribution equal 

to the amount of the supplemental grant. 

‘‘(c) LIMITATION.—None of the assistance made available under 

this section may be used for any overhead or general and administrative expense of a Renewable Fuel Capital Investment company. 

‘‘SEC. 390. BANK PARTICIPATION. 

‘‘(a) IN GENERAL.—Except as provided in subsection (b), any national bank, any member bank of the Federal Reserve System, and 

(to the extent permitted under applicable State law) any insured 

bank that is not a member of such system, may invest in any Renewable Fuel Capital Investment company, or in any entity estabVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00301 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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lished to invest solely in Renewable Fuel Capital Investment companies. 

‘‘(b) LIMITATION.—No bank described in subsection (a) may make 

investments described in such subsection that are greater than 5 

percent of the capital and surplus of the bank. 

‘‘SEC. 391. FEDERAL FINANCING BANK. 

‘‘Notwithstanding section 318, the Federal Financing Bank may 

acquire a debenture issued by a Renewable Fuel Capital Investment company under this part. 

‘‘SEC. 392. REPORTING REQUIREMENT. 

‘‘Each Renewable Fuel Capital Investment company that participates in the program established under this part shall provide to 

the Administrator such information as the Administrator may require, including—

‘‘(1) information related to the measurement criteria that the 

company proposed in its program application; and 

‘‘(2) in each case in which the company makes, under this 

part, an investment in, or a loan or a grant to, a business that 

is not primarily engaged in the research, development, manufacture, or bringing to market or renewable energy sources, a 

report on the nature, origin, and revenues of the business in 

which investments are made. 

‘‘SEC. 393. EXAMINATIONS. 

‘‘(a) IN GENERAL.—Each Renewable Fuel Capital Investment 

company that participates in the program established under this 

part shall be subject to examinations made at the direction of the 

Investment Division of the Administration in accordance with this 

section. 

‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—Examinations 

under this section may be conducted with the assistance of a private sector entity that has both the qualifications and the expertise 

necessary to conduct such examinations. 

‘‘(c) COSTS.—

‘‘(1) ASSESSMENT.—

‘‘(A) IN GENERAL.—The Administrator may assess the 

cost of examinations under this section, including compensation of the examiners, against the company examined. 

‘‘(B) PAYMENT.—Any company against which the Administrator assesses costs under this paragraph shall pay such 

costs. 

‘‘(2) DEPOSIT OF FUNDS.—Funds collected under this section 

shall be deposited in the account for salaries and expenses of 

the Administration. 

‘‘SEC. 394. MISCELLANEOUS. 

‘‘To the extent such procedures are not inconsistent with the requirements of this part, the Administrator may take such action as 

set forth in sections 309, 311, 312, and 314 and an officer, director, 

employee, agent, or other participant in the management or conduct of the affairs of a Renewable Fuel Capital Investment company shall be subject to the requirements of such sections. 


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‘‘SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS. 

‘‘Using the procedures for removing or suspending a director or 

an officer of a licensee set forth in section 313 (to the extent such 

procedures are not inconsistent with the requirements of this part), 

the Administrator may remove or suspend any director or officer of 

any Renewable Fuel Capital Investment company. 

‘‘SEC. 396. REGULATIONS. 

‘‘The Administrator may issue such regulations as the Administrator determines necessary to carry out the provisions of this part 

in accordance with its purposes. 

‘‘SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS. 

‘‘(a) IN GENERAL.—Subject to the availability of appropriations, 

the Administrator is authorized to make $15,000,000 in operational 

assistance grants under section 389 for each of fiscal years 2008 

and 2009. 

‘‘(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds deposited 

under section 393(c)(2) are authorized to be appropriated only for 

the costs of examinations under section 393 and for the costs of 

other oversight activities with respect to the program established 

under this part. 

‘‘SEC. 398. TERMINATION. 

‘‘The program under this part shall terminate at the end of the 

second full fiscal year after the date that the Administrator establishes the program under this part.’’. 

SEC. 1208. STUDY AND REPORT. 

The Administrator of the Small Business Administration shall 

conduct a study of the Renewable Fuel Capital Investment Program under part C of title III of the Small Business Investment 

Act of 1958, as added by this Act. Not later than 3 years after the 

date of enactment of this Act, the Administrator shall complete the 

study under this section and submit to Congress a report regarding 

the results of the study. 

TITLE XIII—SMART GRID 

SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID. 

It is the policy of the United States to support the modernization 

of the Nation’s electricity transmission and distribution system to 

maintain a reliable and secure electricity infrastructure that can 

meet future demand growth and to achieve each of the following, 

which together characterize a Smart Grid: 

(1) Increased use of digital information and controls technology to improve reliability, security, and efficiency of the 

electric grid. 

(2) Dynamic optimization of grid operations and resources, 

with full cyber-security. 

(3) Deployment and integration of distributed resources and 

generation, including renewable resources. 

(4) Development and incorporation of demand response, demand-side resources, and energy-efficiency resources. 

(5) Deployment of ‘‘smart’’ technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, comVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00303 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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munications concerning grid operations and status, and distribution automation. 

(6) Integration of ‘‘smart’’ appliances and consumer devices. 

(7) Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric 

and hybrid electric vehicles, and thermal-storage air conditioning. 

(8) Provision to consumers of timely information and control 

options. 

(9) Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid. 

(10) Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, 

and services. 

SEC. 1302. SMART GRID SYSTEM REPORT. 

The Secretary, acting through the Assistant Secretary of the Office of Electricity Delivery and Energy Reliability (referred to in 

this section as the ‘‘OEDER’’) and through the Smart Grid Task 

Force established in section 1303, shall, after consulting with any 

interested individual or entity as appropriate, no later than one 

year after enactment, and every two years thereafter, report to 

Congress concerning the status of smart grid deployments nationwide and any regulatory or government barriers to continued deployment. The report shall provide the current status and prospects 

of smart grid development, including information on technology 

penetration, communications network capabilities, costs, and obstacles. It may include recommendations for State and Federal policies 

or actions helpful to facilitate the transition to a smart grid. To the 

extent appropriate, it should take a regional perspective. In preparing this report, the Secretary shall solicit advice and contributions from the Smart Grid Advisory Committee created in section 

1303; from other involved Federal agencies including but not limited to the Federal Energy Regulatory Commission (‘‘Commission’’), 

the National Institute of Standards and Technology (‘‘Institute’’), 

and the Department of Homeland Security; and from other stakeholder groups not already represented on the Smart Grid Advisory 

Committee. 

SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID 

TASK FORCE. 

(a) SMART GRID ADVISORY COMMITTEE.—

(1) ESTABLISHMENT.—The Secretary shall establish, within 

90 days of enactment of this Part, a Smart Grid Advisory Committee (either as an independent entity or as a designated subpart of a larger advisory committee on electricity matters). The 

Smart Grid Advisory Committee shall include eight or more 

members appointed by the Secretary who have sufficient experience and expertise to represent the full range of smart grid 

technologies and services, to represent both private and nonFederal public sector stakeholders. One member shall be appointed by the Secretary to Chair the Smart Grid Advisory 

Committee. 

(2) MISSION.—The mission of the Smart Grid Advisory Committee shall be to advise the Secretary, the Assistant SecVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00304 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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retary, and other relevant Federal officials concerning the development of smart grid technologies, the progress of a national transition to the use of smart-grid technologies and services, the evolution of widely-accepted technical and practical 

standards and protocols to allow interoperability and intercommunication among smart-grid capable devices, and the optimum means of using Federal incentive authority to encourage such progress. 

(3) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— The Federal Advisory Committee Act (5 U.S.C. App.) shall 

apply to the Smart Grid Advisory Committee. 

(b) SMART GRID TASK FORCE.— (1) ESTABLISHMENT.—The Assistant Secretary of the Office of 

Electricity Delivery and Energy Reliability shall establish, 

within 90 days of enactment of this Part, a Smart Grid Task 

Force composed of designated employees from the various divisions of that office who have responsibilities related to the 

transition to smart-grid technologies and practices. The Assistant Secretary or his designee shall be identified as the Director 

of the Smart Grid Task Force. The Chairman of the Federal 

Energy Regulatory Commission and the Director of the National Institute of Standards and Technology shall each designate at least one employee to participate on the Smart Grid 

Task Force. Other members may come from other agencies at 

the invitation of the Assistant Secretary or the nomination of 

the head of such other agency. The Smart Grid Task Force 

shall, without disrupting the work of the Divisions or Offices 

from which its members are drawn, provide an identifiable 

Federal entity to embody the Federal role in the national transition toward development and use of smart grid technologies. 

(2) MISSION.—The mission of the Smart Grid Task Force 

shall be to insure awareness, coordination and integration of 

the diverse activities of the Office and elsewhere in the Federal 

government related to smart-grid technologies and practices, 

including but not limited to: smart grid research and development; development of widely accepted smart-grid standards 

and protocols; the relationship of smart-grid technologies and 

practices to electric utility regulation; the relationship of 

smart-grid technologies and practices to infrastructure development, system reliability and security; and the relationship of 

smart-grid technologies and practices to other facets of electricity supply, demand, transmission, distribution, and policy. 

The Smart Grid Task Force shall collaborate with the Smart 

Grid Advisory Committee and other Federal agencies and offices. The Smart Grid Task Force shall meet at the call of its 

Director as necessary to accomplish its mission. 

(c) AUTHORIZATION.—There are authorized to be appropriated for 

the purposes of this section such sums as are necessary to the Secretary to support the operations of the Smart Grid Advisory Committee and Smart Grid Task Force for each of fiscal years 2008 

through 2020. 

SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, 

AND DEMONSTRATION. 

(a) POWER GRID DIGITAL INFORMATION TECHNOLOGY.—The Secretary, in consultation with the Federal Energy Regulatory ComVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00305 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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mission and other appropriate agencies, electric utilities, the 

States, and other stakeholders, shall carry out a program— (1) to develop advanced techniques for measuring peak load 

reductions and energy-efficiency savings from smart metering, 

demand response, distributed generation, and electricity storage systems; 

(2) to investigate means for demand response, distributed 

generation, and storage to provide ancillary services; 

(3) to conduct research to advance the use of wide-area 

measurement and control networks, including data mining, visualization, advanced computing, and secure and dependable 

communications in a highly-distributed environment; 

(4) to test new reliability technologies, including those concerning communications network capabilities, in a grid control 

room environment against a representative set of local outage 

and wide area blackout scenarios; 

(5) to identify communications network capacity needed to 

implement advanced technologies. 

(6) to investigate the feasibility of a transition to time-of-use 

and real-time electricity pricing; 

(7) to develop algorithms for use in electric transmission system software applications; 

(8) to promote the use of underutilized electricity generation 

capacity in any substitution of electricity for liquid fuels in the 

transportation system of the United States; and 

(9) in consultation with the Federal Energy Regulatory Commission, to propose interconnection protocols to enable electric 

utilities to access electricity stored in vehicles to help meet 

peak demand loads. 

(b) SMART GRID REGIONAL DEMONSTRATION INITIATIVE.—

(1) IN GENERAL.—The Secretary shall establish a smart grid 

regional demonstration initiative (referred to in this subsection 

as the ‘‘Initiative’’) composed of demonstration projects specifically focused on advanced technologies for use in power grid 

sensing, communications, analysis, and power flow control. The 

Secretary shall seek to leverage existing smart grid deployments. 

(2) GOALS.—The goals of the Initiative shall be— (A) to demonstrate the potential benefits of concentrated 

investments in advanced grid technologies on a regional 

grid; 

(B) to facilitate the commercial transition from the current power transmission and distribution system technologies to advanced technologies; 

(C) to facilitate the integration of advanced technologies 

in existing electric networks to improve system performance, power flow control, and reliability; 

(D) to demonstrate protocols and standards that allow 

for the measurement and validation of the energy savings 

and fossil fuel emission reductions associated with the installation and use of energy efficiency and demand response technologies and practices; and 

(E) to investigate differences in each region and regulatory environment regarding best practices in implementing smart grid technologies. 


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(3) DEMONSTRATION PROJECTS.— (A) IN GENERAL.—In carrying out the initiative, the Secretary shall carry out smart grid demonstration projects in 

up to 5 electricity control areas, including rural areas and 

at least 1 area in which the majority of generation and 

transmission assets are controlled by a tax-exempt entity. 

(B) COOPERATION.—A demonstration project under subparagraph (A) shall be carried out in cooperation with the 

electric utility that owns the grid facilities in the electricity control area in which the demonstration project is 

carried out. 

(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVEST- MENTS.—The Secretary shall provide to an electric utility 

described in subparagraph (B) financial assistance for use 

in paying an amount equal to not more than 50 percent of 

the cost of qualifying advanced grid technology investments made by the electric utility to carry out a demonstration project. 

(D) INELIGIBILITY FOR GRANTS.—No person or entity participating in any demonstration project conducted under 

this subsection shall be eligible for grants under section 

1306 for otherwise qualifying investments made as part of 

that demonstration project. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated— (1) to carry out subsection (a), such sums as are necessary 

for each of fiscal years 2008 through 2012; and (2) to carry out subsection (b), $100,000,000 for each of fiscal 

years 2008 through 2012. 

SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK. 

(a) INTEROPERABILITY FRAMEWORK.—The Director of the National 

Institute of Standards and Technology shall have primary responsibility to coordinate the development of a framework that includes 

protocols and model standards for information management to 

achieve interoperability of smart grid devices and systems. Such 

protocols and standards shall further align policy, business, and 

technology approaches in a manner that would enable all electric 

resources, including demand-side resources, to contribute to an efficient, reliable electricity network. In developing such protocols and 

standards— (1) the Director shall seek input and cooperation from the 

Commission, OEDER and its Smart Grid Task Force, the 

Smart Grid Advisory Committee, other relevant Federal and 

State agencies; and 

(2) the Director shall also solicit input and cooperation from 

private entities interested in such protocols and standards, including but not limited to the Gridwise Architecture Council, 

the International Electrical and Electronics Engineers, the National Electric Reliability Organization recognized by the Federal Energy Regulatory Commission, and National Electrical 

Manufacturer’s Association. 

(b) SCOPE OF FRAMEWORK.—The framework developed under subsection (a) shall be flexible, uniform and technology neutral, including but not limited to technologies for managing smart grid information, and designed—


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(1) to accommodate traditional, centralized generation and 

transmission resources and consumer distributed resources, including distributed generation, renewable generation, energy 

storage, energy efficiency, and demand response and enabling 

devices and systems; 

(2) to be flexible to incorporate— (A) regional and organizational differences; and 

(B) technological innovations; 

(3) to consider the use of voluntary uniform standards for 

certain classes of mass-produced electric appliances and equipment for homes and businesses that enable customers, at their 

election and consistent with applicable State and Federal laws, 

and are manufactured with the ability to respond to electric 

grid emergencies and demand response signals by curtailing 

all, or a portion of, the electrical power consumed by the appliances or equipment in response to an emergency or demand response signal, including through— (A) load reduction to reduce total electrical demand; 

(B) adjustment of load to provide grid ancillary services; 

and 

(C) in the event of a reliability crisis that threatens an 

outage, short-term load shedding to help preserve the stability of the grid; and 

(4) such voluntary standards should incorporate appropriate 

manufacturer lead time. 

(c) TIMING OF FRAMEWORK DEVELOPMENT.—The Institute shall 

begin work pursuant to this section within 60 days of enactment. 

The Institute shall provide and publish an initial report on 

progress toward recommended or consensus standards and protocols within one year after enactment, further reports at such times 

as developments warrant in the judgment of the Institute, and a 

final report when the Institute determines that the work is completed or that a Federal role is no longer necessary. 

(d) STANDARDS FOR INTEROPERABILITY IN FEDERAL JURISDIC- TION.—At any time after the Institute’s work has led to sufficient 

consensus in the Commission’s judgment, the Commission shall institute a rulemaking proceeding to adopt such standards and protocols as may be necessary to insure smart-grid functionality and 

interoperability in interstate transmission of electric power, and regional and wholesale electricity markets. 

(e) AUTHORIZATION.—There are authorized to be appropriated for the purposes of this section $5,000,000 to the Institute to support 

the activities required by this subsection for each of fiscal years 

2008 through 2012. 

SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT 

COSTS. 

(a) MATCHING FUND.—The Secretary shall establish a Smart 

Grid Investment Matching Grant Program to provide reimbursement of one-fifth (20 percent) of qualifying Smart Grid investments. 

(b) QUALIFYING INVESTMENTS.—Qualifying Smart Grid investments may include any of the following made on or after the date 

of enactment of this Act: 

(1) In the case of appliances covered for purposes of establishing energy conservation standards under part B of title III 


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of the Energy Policy and Conservation Act of 1975 (42 U.S.C. 

6291 et seq.), the documented expenditures incurred by a manufacturer of such appliances associated with purchasing or designing, creating the ability to manufacture, and manufacturing and installing for one calendar year, internal devices 

that allow the appliance to engage in Smart Grid functions. 

(2) In the case of specialized electricity-using equipment, including motors and drivers, installed in industrial or commercial applications, the documented expenditures incurred by its 

owner or its manufacturer of installing devices or modifying 

that equipment to engage in Smart Grid functions. 

(3) In the case of transmission and distribution equipment 

fitted with monitoring and communications devices to enable 

smart grid functions, the documented expenditures incurred by 

the electric utility to purchase and install such monitoring and 

communications devices. 

(4) In the case of metering devices, sensors, control devices, 

and other devices integrated with and attached to an electric 

utility system or retail distributor or marketer of electricity 

that are capable of engaging in Smart Grid functions, the documented expenditures incurred by the electric utility, distributor, or marketer and its customers to purchase and install 

such devices. 

(5) In the case of software that enables devices or computers 

to engage in Smart Grid functions, the documented purchase 

costs of the software. 

(6) In the case of entities that operate or coordinate operations of regional electric grids, the documented expenditures 

for purchasing and installing such equipment that allows 

Smart Grid functions to operate and be combined or coordinated among multiple electric utilities and between that region 

and other regions. 

(7) In the case of persons or entities other than electric utilities owning and operating a distributed electricity generator, 

the documented expenditures of enabling that generator to be 

monitored, controlled, or otherwise integrated into grid operations and electricity flows on the grid utilizing Smart Grid 

functions. 

(8) In the case of electric or hybrid-electric vehicles, the documented expenses for devices that allow the vehicle to engage 

in Smart Grid functions (but not the costs of electricity storage 

for the vehicle). 

(9) The documented expenditures related to purchasing and 

implementing Smart Grid functions in such other cases as the 

Secretary shall identify. In making such grants, the Secretary 

shall seek to reward innovation and early adaptation, even if 

success is not complete, rather than deployment of proven and 

commercially viable technologies. 

(c) INVESTMENTS NOT INCLUDED.—Qualifying Smart Grid investments do not include any of the following: 

(1) Investments or expenditures for Smart Grid technologies, 

devices, or equipment that are eligible for specific tax credits 

or deductions under the Internal Revenue Code, as amended. 


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(2) Expenditures for electricity generation, transmission, or 

distribution infrastructure or equipment not directly related to 

enabling Smart Grid functions. 

(3) After the final date for State consideration of the Smart 

Grid Information Standard under section 1307 (paragraph (17) 

of section 111(d) of the Public Utility Regulatory Policies Act 

of 1978), an investment that is not in compliance with such 

standard. 

(4) After the development and publication by the Institute of 

protocols and model standards for interoperability of smart 

grid devices and technologies, an investment that fails to incorporate any of such protocols or model standards. 

(5) Expenditures for physical interconnection of generators or 

other devices to the grid except those that are directly related 

to enabling Smart Grid functions. 

(6) Expenditures for ongoing salaries, benefits, or personnel 

costs not incurred in the initial installation, training, or start 

up of smart grid functions. 

(7) Expenditures for travel, lodging, meals or other personal 

costs. 

(8) Ongoing or routine operation, billing, customer relations, 

security, and maintenance expenditures. 

(9) Such other expenditures that the Secretary determines 

not to be Qualifying Smart Grid Investments by reason of the 

lack of the ability to perform Smart Grid functions or lack of 

direct relationship to Smart Grid functions. 

(d) SMART GRID FUNCTIONS.—The term ‘‘smart grid functions’’ means any of the following: 

(1) The ability to develop, store, send and receive digital information concerning electricity use, costs, prices, time of use, 

nature of use, storage, or other information relevant to device, 

grid, or utility operations, to or from or by means of the electric 

utility system, through one or a combination of devices and 

technologies. 

(2) The ability to develop, store, send and receive digital information concerning electricity use, costs, prices, time of use, 

nature of use, storage, or other information relevant to device, 

grid, or utility operations to or from a computer or other control device. 

(3) The ability to measure or monitor electricity use as a 

function of time of day, power quality characteristics such as 

voltage level, current, cycles per second, or source or type of 

generation and to store, synthesize or report that information 

by digital means. 

(4) The ability to sense and localize disruptions or changes 

in power flows on the grid and communicate such information 

instantaneously and automatically for purposes of enabling 

automatic protective responses to sustain reliability and security of grid operations. 

(5) The ability to detect, prevent, communicate with regard 

to, respond to, or recover from system security threats, including cyber-security threats and terrorism, using digital information, media, and devices. 

(6) The ability of any appliance or machine to respond to 

such signals, measurements, or communications automatically 


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or in a manner programmed by its owner or operator without 

independent human intervention. 

(7) The ability to use digital information to operate 

functionalities on the electric utility grid that were previously 

electro-mechanical or manual. 

(8) The ability to use digital controls to manage and modify 

electricity demand, enable congestion management, assist in 

voltage control, provide operating reserves, and provide frequency regulation. 

(9) Such other functions as the Secretary may identify as 

being necessary or useful to the operation of a Smart Grid. 

(e) The Secretary shall— (1) establish and publish in the Federal Register, within one 

year after the enactment of this Act procedures by which applicants who have made qualifying Smart Grid investments can 

seek and obtain reimbursement of one-fifth of their documented expenditures; 

(2) establish procedures to ensure that there is no duplication or multiple reimbursement for the same investment or 

costs, that the reimbursement goes to the party making the actual expenditures for Qualifying Smart Grid Investments, and 

that the grants made have significant effect in encouraging 

and facilitating the development of a smart grid; 

(3) maintain public records of reimbursements made, recipients, and qualifying Smart Grid investments which have received reimbursements; 

(4) establish procedures to provide, in cases deemed by the 

Secretary to be warranted, advance payment of moneys up to 

the full amount of the projected eventual reimbursement, to 

creditworthy applicants whose ability to make Qualifying 

Smart Grid Investments may be hindered by lack of initial capital, in lieu of any later reimbursement for which that applicant qualifies, and subject to full return of the advance payment in the event that the Qualifying Smart Grid investment 

is not made; and 

(5) have and exercise the discretion to deny grants for investments that do not qualify in the reasonable judgment of the 

Secretary. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary such sums as are necessary for 

the administration of this section and the grants to be made pursuant to this section for fiscal years 2008 through 2012. 

SEC. 1307. STATE CONSIDERATION OF SMART GRID. 

(a) Section 111(d) of the Public Utility Regulatory Policies Act of 

1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following: 

‘‘(16) CONSIDERATION OF SMART GRID INVESTMENTS.—

‘‘(A) IN GENERAL.—Each State shall consider requiring 

that, prior to undertaking investments in nonadvanced 

grid technologies, an electric utility of the State demonstrate to the State that the electric utility considered an 

investment in a qualified smart grid system based on appropriate factors, including—

‘‘(i) total costs; 

‘‘(ii) cost-effectiveness; 


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‘‘(iii) improved reliability; 

‘‘(iv) security; 

‘‘(v) system performance; and 

‘‘(vi) societal benefit. ‘‘(B) RATE RECOVERY.—Each State shall consider authorizing each electric utility of the State to recover from ratepayers any capital, operating expenditure, or other costs of 

the electric utility relating to the deployment of a qualified 

smart grid system, including a reasonable rate of return 

on the capital expenditures of the electric utility for the 

deployment of the qualified smart grid system. ‘‘(C) OBSOLETE EQUIPMENT.—Each State shall consider 

authorizing any electric utility or other party of the State 

to deploy a qualified smart grid system to recover in a 

timely manner the remaining book-value costs of any 

equipment rendered obsolete by the deployment of the 

qualified smart grid system, based on the remaining depreciable life of the obsolete equipment. 

‘‘(17) SMART GRID INFORMATION.—

‘‘(A) STANDARD.—All electricity purchasers shall be provided direct access, in written or electronic machine-readable form as appropriate, to information from their electricity provider as provided in subparagraph (B). 

‘‘(B) INFORMATION.—Information provided under this 

section, to the extent practicable, shall include: ‘‘(i) PRICES.—Purchasers and other interested persons shall be provided with information on— ‘‘(I) time-based electricity prices in the wholesale electricity market; and ‘‘(II) time-based electricity retail prices or rates 

that are available to the purchasers. ‘‘(ii) USAGE.—Purchasers shall be provided with the 

number of electricity units, expressed in kwh, purchased by them. ‘‘(iii) INTERVALS AND PROJECTIONS.—Updates of information on prices and usage shall be offered on not 

less than a daily basis, shall include hourly price and 

use information, where available, and shall include a 

day-ahead projection of such price information to the 

extent available. ‘‘(iv) SOURCES.—Purchasers and other interested 

persons shall be provided annually with written information on the sources of the power provided by the 

utility, to the extent it can be determined, by type of 

generation, including greenhouse gas emissions associated with each type of generation, for intervals during 

which such information is available on a cost-effective 

basis. 

‘‘(C) ACCESS.—Purchasers shall be able to access their 

own information at any time through the internet and on 

other means of communication elected by that utility for 

Smart Grid applications. Other interested persons shall be 

able to access information not specific to any purchaser 

through the Internet. Information specific to any purchaser shall be provided solely to that purchaser.’’. 


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(b) COMPLIANCE.—

(1) TIME LIMITATIONS.—Section 112(b) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 

by adding the following at the end thereof: 

‘‘(6)(A) Not later than 1 year after the enactment of this 

paragraph, each State regulatory authority (with respect to 

each electric utility for which it has ratemaking authority) and 

each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, 

with respect to the standards established by paragraphs (17) 

through (18) of section 111(d). 

‘‘(B) Not later than 2 years after the date of the enactment 

of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete 

the consideration, and shall make the determination, referred 

to in section 111 with respect to each standard established by 

paragraphs (17) through (18) of section 111(d).’’. 

(2) FAILURE TO COMPLY.—Section 112(c) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended 

by adding the following at the end: 

‘‘In the case of the standards established by paragraphs (16) 

through (19) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be 

a reference to the date of enactment of such paragraphs.’’. 

(3) PRIOR STATE ACTIONS.—Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is 

amended by inserting ‘‘and paragraphs (17) through (18)’’ before ‘‘of section 111(d)’’. 

SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE 

DEVELOPMENT OF COMBINED HEAT AND POWER FACILITIES. 

(a) STUDY.—

(1) IN GENERAL.—The Secretary, in consultation with the 

States and other appropriate entities, shall conduct a study of 

the laws (including regulations) affecting the siting of privately 

owned electric distribution wires on and across public rightsof-way. 

(2) REQUIREMENTS.—The study under paragraph (1) shall include—

(A) an evaluation of—

(i) the purposes of the laws; and 

(ii) the effect the laws have on the development of 

combined heat and power facilities; 

(B) a determination of whether a change in the laws 

would have any operating, reliability, cost, or other impacts on electric utilities and the customers of the electric 

utilities; and 

(C) an assessment of—

(i) whether privately owned electric distribution 

wires would result in duplicative facilities; and 

(ii) whether duplicative facilities are necessary or 

desirable. 


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(b) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Secretary shall submit to Congress a report that describes the results of the study conducted under subsection (a). 

SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID 

SYSTEMS. 

(a) DOE STUDY.—The Secretary shall, within 18 months after 

the date of enactment of this Act, submit a report to Congress that 

provides a quantitative assessment and determination of the existing and potential impacts of the deployment of Smart Grid systems 

on improving the security of the Nation’s electricity infrastructure 

and operating capability. The report shall include but not be limited to specific recommendations on each of the following: 

(1) How smart grid systems can help in making the Nation’s 

electricity system less vulnerable to disruptions due to intentional acts against the system. 

(2) How smart grid systems can help in restoring the integrity of the Nation’s electricity system subsequent to disruptions. 

(3) How smart grid systems can facilitate nationwide, interoperable emergency communications and control of the Nation’s electricity system during times of localized, regional, or 

nationwide emergency. 

(4) What risks must be taken into account that smart grid 

systems may, if not carefully created and managed, create vulnerability to security threats of any sort, and how such risks 

may be mitigated. 

(b) CONSULTATION.—The Secretary shall consult with other Federal agencies in the development of the report under this section, 

including but not limited to the Secretary of Homeland Security, 

the Federal Energy Regulatory Commission, and the Electric Reliability Organization certified by the Commission under section 

215(c) of the Federal Power Act (16 U.S.C. 824o) as added by section 1211 of the Energy Policy Act of 2005 (Public Law 109–58; 119 

Stat. 941). 

TITLE XIV—RENEWABLE ELECTRICITY STANDARD 

SEC. 1401. RENEWABLE ELECTRICITY STANDARD. 

(a) IN GENERAL.—Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following: 

‘‘SEC. 610. RENEWABLE ELECTRICITY STANDARD. 

‘‘(a) DEFINITIONS.—For purposes of this section: 

‘‘(1) BIOMASS.—

‘‘(A) IN GENERAL.—The term ‘biomass’ means each of the 

following: 

‘‘(i) Cellulosic (plant fiber) organic materials from a 

plant that is planted for the purpose of being used to 

produce energy. 

‘‘(ii) Nonhazardous, plant or algal matter that is derived from any of the following: 

‘‘(I) An agricultural crop, crop byproduct or residue resource. 

‘‘(II) Waste such as landscape or right-of-way 

trimmings (but not including municipal solid 

waste, recyclable postconsumer waste paper, 


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painted, treated, or pressurized wood, wood contaminated with plastic or metals). ‘‘(iii) Animal waste or animal byproducts. 

‘‘(iv) Landfill methane. ‘‘(B) NATIONAL FOREST LANDS AND CERTAIN OTHER PUB- LIC LANDS.—With respect to organic material removed 

from National Forest System lands or from public lands 

administered by the Secretary of the Interior, the term 

‘biomass’ covers only organic material from (i) ecological 

forest restoration; (ii) pre-commercial thinnings; (iii) brush; 

(iv) mill residues; and (v) slash. ‘‘(C) EXCLUSION OF CERTAIN FEDERAL LANDS.—Notwithstanding subparagraph (B), material or matter that would 

otherwise qualify as biomass are not included in the term 

biomass if they are located on the following Federal lands: 

‘‘(i) Federal land containing old growth forest or late 

successional forest unless the Secretary of the Interior 

or the Secretary of Agriculture determines that the removal of organic material from such land is appropriate for the applicable forest type and maximizes the 

retention of late-successional and large and old growth 

trees, late-successional and old growth forest structure, and late-successional and old growth forest composition. 

‘‘(ii) Federal land on which the removal of vegetation 

is prohibited, including components of the National 

Wilderness Preservation System. 

‘‘(iii) Wilderness Study Areas. 

‘‘(iv) Inventoried roadless areas. 

‘‘(v) Components of the National Landscape Conservation System. 

‘‘(vi) National Monuments. 

‘‘(2) ELIGIBLE FACILITY.—The term ‘eligible facility’ means— ‘‘(A) a facility for the generation of electric energy from 

a renewable energy resource that is placed in service on or 

after January 1, 2001; or ‘‘(B) a repowering or cofiring increment. ‘‘(3) EXISTING FACILITY.—The term ‘existing facility’ means a 

facility for the generation of electric energy from a renewable 

energy resource that is not an eligible facility. ‘‘(4) INCREMENTAL HYDROPOWER.—The term ‘incremental hydropower’ means additional generation that is achieved from 

increased efficiency or additions of capacity made on or after 

January 1, 2001, or the effective date of an existing applicable 

State renewable portfolio standard program at a hydroelectric 

facility that was placed in service before that date. 

‘‘(5) INDIAN LAND.—The term ‘Indian land’ means—

‘‘(A) any land within the limits of any Indian reservation, pueblo, or rancheria; ‘‘(B) any land not within the limits of any Indian reservation, pueblo, or rancheria title to which was on the 

date of enactment of this paragraph either held by the 

United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to 

restriction by the United States against alienation; 


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‘‘(C) any dependent Indian community; or 

‘‘(D) any land conveyed to any Alaska Native corporation 

under the Alaska Native Claims Settlement Act. ‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the 

Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 

which is recognized as eligible for the special programs and 

services provided by the United States to Indians because of 

their status as Indians. ‘‘(7) RENEWABLE ENERGY.—The term ‘renewable energy’

means electric energy generated by a renewable energy resource. 

‘‘(8) RENEWABLE ENERGY RESOURCE.—The term ‘renewable 

energy resource’ means solar, wind, ocean, tidal, geothermal 

energy, biomass, landfill gas, incremental hydropower, or 

hydrokinetic energy. 

‘‘(9) REPOWERING OR COFIRING INCREMENT.—The term 

‘repowering or cofiring increment’ means—

‘‘(A) the additional generation from a modification that 

is placed in service on or after January 1, 2001, to expand 

electricity production at a facility used to generate electric 

energy from a renewable energy resource; 

‘‘(B) the additional generation above the average generation in the 3 years preceding the date of enactment of this 

section at a facility used to generate electric energy from 

a renewable energy resource or to cofire biomass that was 

placed in service before the date of enactment of this section: or 

‘‘(C) the portion of the electric generation from a facility 

placed in service on or after January 1, 2001, or a modification to a facility placed in service before the date of enactment of this section made on or after January 1, 2001, 

associated with cofiring biomass. ‘‘(10) RETAIL ELECTRIC SUPPLIER.—(A) The term ‘retail electric supplier’ means a person that sells electric energy to electric consumers (other than consumers in Hawaii) that sold not 

less than 1,000,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year. For purposes of this section, a person 

that sells electric energy to electric consumers that, in combination with the sales of any affiliate organized after the date 

of enactment of this section, sells not less that 1,000,000 megawatt hours of electric energy to consumers for purposes other 

than resale shall qualify as a retail electric supplier. For purposes of this paragraph, sales by any person to a parent company or to other affiliates of such person shall not be treated 

as sales to electric consumers. ‘‘(B) Such term does not include the United States, a State 

or any political subdivision of a State, or any agency, authority, 

or instrumentality of any one or more of the foregoing, or a 

rural electric cooperative, except that a political subdivision of a 

State, or an agency, authority or instrumentality of the United 

States, a State or a political subdivision of a State, or a rural 


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electric cooperative that sells electric energy to electric consumers or any other entity that sells electric energy to electric 

consumers that would not otherwise qualify as a retail electric 

supplier shall be deemed a retail electric supplier if such entity 

notifies the Secretary that it voluntarily agrees to participate 

in the Federal renewable electricity standard program. ‘‘(11) RETAIL ELECTRIC SUPPLIER’S BASE AMOUNT.—The term ‘retail electric supplier’s base amount’ means the total amount 

of electric energy sold by the retail electric supplier, expressed 

in terms of kilowatt hours, to electric customers for purposes 

other than resale during the most recent calendar year for 

which information is available, excluding— ‘‘(A) electric energy that is not incremental hydropower 

generated by a hydroelectric facility; and ‘‘(B) electricity generated through the incineration of municipal solid waste. ‘‘(b) COMPLIANCE.—For each calendar year beginning in calendar 

year 2010, each retail electric supplier shall meet the requirements 

of subsection (c) by submitting to the Secretary, not later than 

April 1 of the following calendar year, one or more of the following: 

‘‘(1) Federal renewable energy credits issued under subsection (e). 

‘‘(2) Federal energy efficiency credits issued under subsection 

(i), except that Federal energy efficiency credits may not be 

used to meet more than 27 percent of the requirements of subsection (c) in any calendar year. Energy efficiency credits may 

only be used for compliance in a State where the Governor has 

petitioned the Secretary pursuant to subjection (i)(2). 

‘‘(3) Certification of the renewable energy generated and electricity savings pursuant to the funds associated with State 

compliance payments as specified in subsection (e)(3)(G). 

‘‘(4) Alternative compliance payments pursuant to subsection 

(j). ‘‘(c) REQUIRED ANNUAL PERCENTAGE.—For calendar years 2010 

through 2039, the required annual percentage of the retail electric 

supplier’s base amount that shall be generated from renewable energy resources, or otherwise credited towards such percentage requirement pursuant to subsection (d), shall be the percentage specified in the following table: 

Required annual 

‘‘Calendar Years percentage 

2010 .................................................................................................... 2.75 

2011 .................................................................................................... 2.75 

2012 .................................................................................................... 3.75 

2013 .................................................................................................... 4.5 

2014 .................................................................................................... 5.5 

2015 .................................................................................................... 6.5 

2016 .................................................................................................... 7.5 

2017 .................................................................................................... 8.25 

2018 .................................................................................................... 10.25 

2019 .................................................................................................... 12.25 

2020 and thereafter through 2039 ................................................... 15 

‘‘(d) RENEWABLE ENERGY AND ENERGY EFFICIENCY CREDITS.—(1) 

A retail electric supplier may satisfy the requirements of subsection 

(b)(1) through the submission of Federal renewable energy credits— ‘‘(A) issued to the retail electric supplier under subsection (e); 


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‘‘(B) obtained by purchase or exchange under subsection (f) 

or (g); or 

‘‘(C) borrowed under subsection (h). 

‘‘(2) A retail electric supplier may satisfy the requirements of 

subsection (b)(2) through the submission of Federal energy efficiency credits issued to the retail electric supplier obtained by purchase or exchange pursuant to subsection (i). 

‘‘(3) A Federal renewable energy credit may be counted toward 

compliance with subsection (b)(1) only once. A Federal energy efficiency credit may be counted toward compliance with subsection 

(b)(2) only once. 

‘‘(e) ISSUANCE OF FEDERAL RENEWABLE ENERGY CREDITS.—(1) 

The Secretary shall establish by rule, not later than 1 year after 

the date of enactment of this section, a program to verify and issue 

Federal renewable energy credits to generators of renewable energy, track their sale, exchange and retirement and to enforce the 

requirements of this section. To the extent possible, in establishing 

such program, the Secretary shall rely upon existing and emerging 

State or regional tracking systems that issue and track non-Federal renewable energy credits. 

‘‘(2) An entity that generates electric energy through the use of 

a renewable energy resource may apply to the Secretary for the 

issuance of renewable energy credits. The applicant must demonstrate that the electric energy will be transmitted onto the grid 

or, in the case of a generation offset, that the electric energy offset 

would have otherwise been consumed on site. The application shall 

indicate—

‘‘(A) the type of renewable energy resource used to produce 

the electricity; 

‘‘(B) the location where the electric energy was produced; and 

‘‘(C) any other information the Secretary determines appropriate. 

‘‘(3)(A) Except as provided in subparagraphs (B), (C), and (D), the 

Secretary shall issue to a generator of electric energy one Federal 

renewable energy credit for each kilowatt hour of electric energy 

generated by the use of a renewable energy resource at an eligible 

facility. 

‘‘(B) For purpose of compliance with this section, Federal renewable energy credits for incremental hydropower shall be based, on 

the increase in average annual generation resulting from the efficiency improvements or capacity additions. The incremental generation shall be calculated using the same water flow information 

used to determine a historic average annual generation baseline for 

the hydroelectric facility and certified by the Secretary or the Federal Energy Regulatory Commission. The calculation of the Federal 

renewable energy credits for incremental hydropower shall not be 

based on any operational changes at the hydroelectric facility not 

directly associated with the efficiency improvements or capacity additions. 

‘‘(C) The Secretary shall issue 2 renewable energy credits for 

each kilowatt hour of electric energy generated and supplied to the 

grid in that calendar year through the use of a renewable energy 

resource at an eligible facility located on Indian land. For purposes 

of this paragraph, renewable energy generated by biomass cofired 


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with other fuels is eligible for two credits only if the biomass was 

grown on such land. ‘‘(D) For electric energy generated by a renewable energy resource at an on-site eligible facility no larger than one megawatt 

in capacity and used to offset part or all of the customer’s requirements for electric energy, the Secretary shall issue 3 renewable energy credits to such customer for each kilowatt hour generated. ‘‘(E) In the case of an on-site eligible facility on Indian land no 

more than 3 credits per kilowatt hour may be issued. ‘‘(F) If both a renewable energy resource and a non-renewable energy resource are used to generate the electric energy, the Secretary shall issue the Federal renewable energy credits based on 

the proportion of the renewable energy resources used. ‘‘(G) When a generator has sold electric energy generated 

through the use of a renewable energy resource to a retail electric 

supplier under a contract for power from an existing facility, and 

the contract has not determined ownership of the Federal renewable energy credits associated with such generation, the Secretary 

shall issue such Federal renewable energy credits to the retail electric supplier for the duration of the contract. ‘‘(H) Payments made by a retail electricity supplier, directly or 

indirectly, to a State for compliance with a State renewable portfolio standard program, or for an alternative compliance mechanism, shall be valued at one credit per kilowatt hour for the purpose of subsection (b)(2) based on the amount of electric energy 

generation from renewable resources and electricity savings up to 

27 percent of the utility’s requirement that results from those payments. ‘‘(f) EXISTING FACILITIES.—The Secretary shall ensure that a retail electric supplier that acquires Federal renewable energy credits 

associated with the generation of renewable energy from an existing facility may use such credits for purpose of its compliance with 

subsection (b)(1). Such credits may not be sold, exchanged, or 

transferred for the purpose of compliance by another retail electric 

supplier. ‘‘(g) RENEWABLE ENERGY CREDIT TRADING.—(1) A Federal renewable energy credit, may be sold, transferred or exchanged by the 

entity to whom issued or by any other entity who acquires the Federal renewable energy credit, except for those renewable energy 

credits from existing facilities. A Federal renewable energy credit 

for any year that is not submitted to satisfy the minimum renewable generation requirement of subsection (c) for that year may be 

carried forward for use pursuant to subsection (b)(1) within the 

next 3 years. ‘‘(2) A Federally owned or cooperatively owned utility, or a State 

or subdivision thereof, that is not a retail electric supplier that generates electric energy by the use of a renewable energy resource at 

an eligible facility may only sell, transfer or exchange a Federal renewable energy credit to a cooperatively owned utility or an agency, authority or instrumentality of a State or political subdivision 

of a State that is a retail electric supplier that has acquired the 

electric energy associated with the credit. 

‘‘(3) The Secretary may delegate to an appropriate market-making entity the administration of a national tradeable renewable energy credit market and a nation energy efficiency credit market for 


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purposes of creating a transparent national market for the sale or 

trade of renewable energy credits and a transparent national market for the sale or trade of Federal energy efficiency credits. ‘‘(h) RENEWABLE ENERGY CREDIT BORROWING.—At any time before the end of calendar year 2012, a retail electric supplier that 

has reason to believe it will not be able to fully comply with subsection (b) may— ‘‘(1) submit a plan to the Secretary demonstrating that the 

retail electric supplier will earn sufficient Federal renewable 

energy credits and Federal energy efficiency credits within the 

next 3 calendar years which, when taken into account, will enable the retail electric supplier to meet the requirements of 

subsection (b) for calendar year 2012 and the subsequent calendar years involved; and ‘‘(2) upon the approval of the plan by the Secretary, apply 

Federal renewable energy credits and Federal energy efficiency 

credits that the plan demonstrates will be earned within the 

next 3 calendar years to meet the requirements of subsection 

(b) for each calendar year involved. 

The retail electric supplier must repay all of the borrowed Federal 

renewable energy credits and Federal energy efficiency credits by 

submitting an equivalent number of Federal renewable energy 

credits and Federal energy efficiency credits, in addition to those 

otherwise required under subsection (b), by calendar year 2020 or 

any earlier deadlines specified in the approved plan. Failure to 

repay the borrowed Federal renewable energy credits and Federal 

energy efficiency credits shall subject the retail electric supplier to 

civil penalties under subsection (i) for violation of the requirements 

of subsection (b) for each calendar year involved. ‘‘(i) ENERGY EFFICIENCY CREDITS.—

‘‘(1) DEFINITIONS.—In this subsection— ‘‘(A) CUSTOMER FACILITY SAVINGS.—The term ‘customer 

facility savings’ means a reduction in end-use electricity at 

a facility of an end-use consumer of electricity served by a 

retail electric supplier, as compared to— ‘‘(i) consumption at the facility during a base year; 

‘‘(ii) in the case of new equipment (regardless of 

whether the new equipment replaces existing equipment at the end of the useful life of the existing equipment), consumption by the new equipment of average 

efficiency; or ‘‘(iii) in the case of a new facility, consumption at a 

reference facility. ‘‘(B) ELECTRICITY SAVINGS.—The term ‘electricity savings’ means—

‘‘(i) customer facility savings of electricity consumption adjusted to reflect any associated increase in fuel 

consumption at the facility; 

‘‘(ii) reductions in distribution system losses of electricity achieved by a retail electricity distributor, as 

compared to losses during the base years; ‘‘(iii) the output of new combined heat and power 

systems, to the extent provided under paragraph (5); 

and ‘‘(iv) recycled energy savings. 


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‘‘(C) QUALIFYING ELECTRICITY SAVINGS.—The term ‘qualifying electricity savings’ means electricity saving that meet 

the measurement and verification requirements of paragraph (4). ‘‘(D) RECYCLED ENERGY SAVINGS.—The term ‘recycled energy savings’ means a reduction in electricity consumption 

that is attributable to electrical or mechanical power, or 

both, produced by modifying an industrial or commercial 

system that was in operation before July 1, 2007, in order 

to recapture energy that would otherwise be wasted. ‘‘(2) PETITION.—The Governor of a State may petition the 

Secretary to allow up to 27 percent of the requirements of a 

retail electric supplier under subsection (c) in the State to be 

met by submitting Federal energy efficiency credits issued pursuant to this subsection. ‘‘(3) ISSUANCE OF CREDITS.—(A) Upon petition by the Governor, the Secretary shall issue energy efficiency credits for 

electricity savings described in subparagraph (B) achieved in 

States described in paragraph (2) in accordance with this subsection. 

‘‘(B) In accordance with regulations promulgated by the Secretary, the Secretary shall issue credits for—

‘‘(i) qualified electricity savings achieved by a retail electric supplier in a calendar year; and 

‘‘(ii) qualified electricity savings achieved by other entities if—

‘‘(I) the measures used to achieve the qualifying 

electricity savings were installed or place in operation 

by the entity seeking the credit or the designated 

agent of the entity; and 

‘‘(II) no retail electric supplier paid a substantial 

portion of the cost of achieving the qualified electricity 

savings (unless the retail electric supplier has waived 

any entitlement to the credit). ‘‘(4) MEASUREMENT AND VERIFICATION OF ELECTRICITY SAV- INGS.—Not later than June 30, 2009, the Secretary shall promulgate regulations regarding the measurement and 

verification of electricity savings under this subsection, including regulations covering— ‘‘(A) procedures and standards for defining and measuring electricity savings that will be eligible to receive 

credits under paragraph (3), which shall— ‘‘(i) specify the types of energy efficiency and energy 

conservation that will be eligible for the credits; ‘‘(ii) require that energy consumption for customer 

facilities or portions of facilities in the applicable base 

and current years be adjusted, as appropriate, to account for changes in weather, level of production, and 

building area; ‘‘(iii) account for the useful life of electricity savings 

measures; 

‘‘(iv) include specified electricity savings values for 

specific, commonly-used efficiency measures; 

‘‘(v) specify the extent to which electricity savings 

attributable to measures carried out before the date of 


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enactment of this section are eligible to receive credits 

under this subsection; and ‘‘(vi) exclude electricity savings that (I) are not properly attributable to measures carried out by the entity 

seeking the credit; or (II) have already been credited 

under this section to another entity; ‘‘(B) procedures and standards for third-party 

verification of reported electricity savings; and ‘‘(C) such requirements for information, reports, and access to facilities as may be necessary to carry out this subsection. ‘‘(5) COMBINED HEAT AND POWER.—Under regulations promulgated by the Secretary, the increment of electricity output 

of a new combined heat and power system that is attributable 

to the higher efficiency of the combined system (as compared 

to the efficiency of separate production of the electric and thermal outputs), shall be considered electricity savings under this 

subsection. 

‘‘(j) ENFORCEMENT.—A retail electric supplier that does not comply with subsection (b) shall be liable for the payment of a civil 

penalty. That penalty shall be calculated on the basis of the number of kilowatt-hours represented by the retail electric supplier’s 

failure to comply with subsection (b), multiplied by the lesser of 4.5 

cents (adjusted for inflation for such calendar year, based on the 

Gross Domestic Product Implicit Price Deflator) or 300 percent of 

the average market value of Federal renewable energy credits and 

energy efficiency credits for the compliance period. Any such penalty shall be due and payable without demand to the Secretary as 

provided in the regulations issued under subsection (e). 

‘‘(k) ALTERNATIVE COMPLIANCE PAYMENTS.—The Secretary shall 

accept payment equal to the lesser of: 

‘‘(1) 200 percent of the average market value of Federal renewable energy credits and Federal energy efficiency credits 

for the applicable compliance period; or ‘‘(2) 2.5 cents per kilowatt hour adjusted on January 1 of 

each year following calendar year 2006 based on the Gross Domestic Product Implicit Price Deflator, 

as a means of compliance under subsection (b)(4) ‘‘(l) INFORMATION COLLECTION.—The Secretary may collect the 

information necessary to verify and audit— ‘‘(1) the annual renewable energy generation of any retail 

electric supplier, Federal renewable energy credits submitted 

by a retail electric supplier pursuant to subsection (b)(1) and 

Federal energy efficiency credits submitted by a retail electric 

supplier pursuant to subsection (b)(2); ‘‘(2) annual electricity savings achieved pursuant to subsection (i); ‘‘(3) the validity of Federal renewable energy credits submitted for compliance by a retail electric supplier to the Secretary; and 

‘‘(4) the quantity of electricity sales of all retail electric suppliers. 

‘‘(m) ENVIRONMENTAL SAVINGS CLAUSE.—Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements. 


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‘‘(n) STATE PROGRAMS.—(1) Nothing in this section diminishes 

any authority of a State or political subdivision of a State to— ‘‘(A) adopt or enforce any law or regulation respecting renewable energy or energy efficiency, including 

but not limited to programs that exceed the required 

amount of renewable energy or energy efficiency under 

this section, or ‘‘(B) regulate the acquisition and disposition of Federal renewable energy credits and Federal energy efficiency credits by retail electric suppliers. 

No law or regulation referred to in subparagraph (A) shall relieve any person of any requirement otherwise applicable 

under this section. The Secretary, in consultation with States 

having renewable energy programs and energy efficiency programs, shall preserve the integrity of such State programs, including programs that exceed the required amount of renewable energy and energy efficiency under this section, and shall 

facilitate coordination between the Federal program and State 

programs. ‘‘(2) In the rule establishing the program under this section, the 

Secretary shall incorporate common elements of existing renewable 

energy and energy efficiency programs, including State programs, 

to ensure administrative ease, market transparency and effective 

enforcement. The Secretary shall work with the States to minimize 

administrative burdens and costs to retail electric suppliers. ‘‘(o) RECOVERY OF COSTS.—An electric utility whose sales of electric energy are subject to rate regulation, including any utility 

whose rates are regulated by the Commission and any State regulated electric utility, shall not be denied the opportunity to recover 

the full amount of the prudently incurred incremental cost of renewable energy and energy efficiency obtained to comply with the 

requirements of subsection (b). For purposes of this subsection, the 

definitions in section 3 of this Act shall apply to the terms electric 

utility, State regulated electric utility, State agency, Commission, 

and State regulatory authority. 

‘‘(p) PROGRAM REVIEW.—The Secretary shall enter into a contract 

with the National Academy of Sciences to conduct a comprehensive 

evaluation of all aspects of the program established under this section, within 8 years of enactment of this section. The study shall 

include an evaluation of— ‘‘(1) the effectiveness of the program in increasing the market penetration and lowering the cost of the eligible renewable 

energy and energy efficiency technologies; ‘‘(2) the opportunities for any additional technologies and 

sources of renewable energy and energy efficiency emerging 

since enactment of this section; ‘‘(3) the impact on the regional diversity and reliability of 

supply sources, including the power quality benefits of distributed generation; ‘‘(4) the regional resource development relative to renewable 

potential and reasons for any under investment in renewable 

resources; and 

‘‘(5) the net cost/benefit of the renewable electricity standard 

to the national and State economies, including retail power 

costs, economic development benefits of investment, avoided 


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costs related to environmental and congestion mitigation investments that would otherwise have been required, impact on 

natural gas demand and price, effectiveness of green marketing programs at reducing the cost of renewable resources. 

The Secretary shall transmit the results of the evaluation and any 

recommendations for modifications and improvements to the program to Congress not later than January 1, 2016. 

‘‘(q) STATE RENEWABLE ENERGY AND ENERGY EFFICIENCY ACCOUNT PROGRAM.—(1) There is established in the Treasury a State 

renewable energy and energy efficiency account program. 

‘‘(2) All money collected by the Secretary from the alternative 

compliance payments under subsection (k) shall be deposited into 

the State renewable energy and energy efficiency account established pursuant to this subsection. 

‘‘(3) Proceeds deposited in the State renewable energy and energy 

efficiency account shall be used by the Secretary, subject to annual 

appropriations, for a program to provide grants to the State agency 

responsible for administering a fund to promote renewable energy 

generation and energy efficiency for customers of the State, or an 

alternative agency designated by the State, or if no such agency exists, to the State agency developing State energy conservation 

plans under section 363 of the Energy Policy and Conservation Act 

(42 U.S.C. 6322) for the purposes of promoting renewable energy 

production and providing energy assistance and weatherization 

services to low-income consumers. 

‘‘(4) The Secretary may issue guidelines and criteria for grants 

awarded under this subsection. At least 75 percent of the funds 

provided to each State shall be used for promoting renewable energy production and energy efficiency through grants, production 

incentives or other state-approved funding mechanisms. The funds 

shall be allocated to the States on the basis of retail electric sales 

subject to the Renewable electricity Standard under this section or 

through voluntary participation. State agencies receiving grants 

under this section shall maintain such records and evidence of compliance as the Secretary may require.’’. 

(b) TABLE OF CONTENTS.—The table of contents for such title is 

amended by adding the following new item at the end: 

‘‘Sec. 610. Federal renewable electricity standard’’. 

(c) SUNSET.—Section 610 of such title and the item relating to 

such section 610 in the table of contents for such title are each repealed as of December 31, 2039. 

TITLE XV—CLEAN RENEWABLE ENERGY AND 

CONSERVATION TAX ACT OF 2007 

SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE. 

(a) SHORT TITLE.—This title may be cited as the ‘‘Clean Renewable Energy and Conservation Tax Act of 2007’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or 

other provision, the reference shall be considered to be made to a 

section or other provision of the Internal Revenue Code of 1986. 


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Subtitle A—Clean Renewable Energy Production Incentives 

PART I—PROVISIONS RELATING TO 

RENEWABLE ENERGY 

SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY 

CREDIT. 

(a) EXTENSION OF CREDIT.—Each of the following provisions of 

section 45(d) (relating to qualified facilities) is amended by striking 

‘‘January 1, 2009’’ and inserting ‘‘January 1, 2013’’: 

(1) Paragraph (1). 

(2) Clauses (i) and (ii) of paragraph (2)(A). 

(3) Clauses (i)(I) and (ii) of paragraph (3)(A). 

(4) Paragraph (4). 

(5) Paragraph (5). 

(6) Paragraph (6). 

(7) Paragraph (7). 

(8) Subparagraphs (A) and (B) of paragraph (9). 

(b) MODIFICATION OF CREDIT PHASEOUT.— (1) REPEAL OF PHASEOUT.—Subsection (b) of section 45 is 

amended— (A) by striking paragraph (1), and 

(B) by striking ‘‘the 8 cent amount in paragraph (1),’’ in 

paragraph (2) thereof. 

(2) LIMITATION BASED ON INVESTMENT IN FACILITY.—Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph: ‘‘(1) LIMITATION BASED ON INVESTMENT IN FACILITY.— ‘‘(A) IN GENERAL.—In the case of any qualified facility 

originally placed in service after December 31, 2008, the 

amount of the credit determined under subsection (a) for 

any taxable year with respect to electricity produced at 

such facility shall not exceed the product of— ‘‘(i) the applicable percentage with respect to such 

facility, multiplied by ‘‘(ii) the eligible basis of such facility. ‘‘(B) CARRYFORWARD OF UNUSED LIMITATION AND EXCESS

CREDIT.—

‘‘(i) UNUSED LIMITATION.—If the limitation imposed 

under subparagraph (A) with respect to any facility for 

any taxable year exceeds the prelimitation credit for 

such facility for such taxable year, the limitation imposed under subparagraph (A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess. ‘‘(ii) EXCESS CREDIT.—If the prelimitation credit with 

respect to any facility for any taxable year exceeds the 

limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit 

determined under subsection (a) with respect to such 

facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount 

of such excess. With respect to any facility, no amount 

may carried forward under this clause to any taxable 


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year beginning after the 10-year period described in 

subsection (a)(2)(A)(ii) with respect to such facility. ‘‘(iii) PRELIMITATION CREDIT.—The term ‘prelimitation credit’ with respect to any facility for a 

taxable year means the credit determined under subsection (a) with respect to such facility for such taxable year, determined without regard to subparagraph 

(A) and after taking into account any increase for such 

taxable year under clause (ii). ‘‘(C) APPLICABLE PERCENTAGE.—For purposes of this 

paragraph— ‘‘(i) IN GENERAL.—The term ‘applicable percentage’

means, with respect to any facility, the appropriate 

percentage prescribed by the Secretary for the month 

in which such facility is originally placed in service. 

‘‘(ii) METHOD OF PRESCRIBING APPLICABLE PERCENTAGES.—The applicable percentages prescribed by the 

Secretary for any month under clause (i) shall be percentages which yield over a 10-year period amounts of 

limitation under subparagraph (A) which have a 

present value equal to 35 percent of the eligible basis 

of the facility. 

‘‘(iii) METHOD OF DISCOUNTING.—The present value 

under clause (ii) shall be determined— ‘‘(I) as of the last day of the 1st year of the 10- 

year period referred to in clause (ii), ‘‘(II) by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as 

in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, and ‘‘(III) by taking into account the limitation 

under subparagraph (A) for any year on the last 

day of such year. 

‘‘(D) ELIGIBLE BASIS.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘eligible basis’ means, 

with respect to any facility, the sum of— ‘‘(I) the basis of such facility determined as of 

the time that such facility is originally placed in 

service, and ‘‘(II) the portion of the basis of any shared qualified property which is properly allocable to such 

facility under clause (ii). ‘‘(ii) RULES FOR ALLOCATION.—For purposes of subclause (II) of clause (i), the basis of shared qualified 

property shall be allocated among all qualified facilities which are projected to be placed in service and 

which require utilization of such property in proportion to projected generation from such facilities. ‘‘(iii) SHARED QUALIFIED PROPERTY.—For purposes of 

this paragraph, the term ‘shared qualified property’ means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)— ‘‘(I) which a qualified facility will require for utilization of such facility, and 


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‘‘(II) which is not a qualified facility. 

‘‘(iv) SPECIAL RULE RELATING TO GEOTHERMAL FACILITIES.—In the case of any qualified facility using 

geothermal energy to produce electricity, the basis of 

such facility for purposes of this paragraph shall be 

determined as though intangible drilling and development costs described in section 263(c) were capitalized 

rather than expensed. 

‘‘(E) SPECIAL RULE FOR FIRST AND LAST YEAR OF CREDIT

PERIOD.—In the case of any taxable year any portion of 

which is not within the 10-year period described in subsection (a)(2)(A)(ii) with respect to any facility, the amount 

of the limitation under subparagraph (A) with respect to 

such facility shall be reduced by an amount which bears 

the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period 

bears to the entire taxable year. 

‘‘(F) ELECTION TO TREAT ALL FACILITIES PLACED IN SERVICE IN A YEAR AS 1 FACILITY.—At the election of the taxpayer, all qualified facilities which are part of the same 

project and which are placed in service during the same 

calendar year shall be treated for purposes of this section 

as 1 facility which is placed in service at the mid-point of 

such year or the first day of the following calendar year.’’. 

(c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to property originally placed in service after December 31, 2008. 

(2) REPEAL OF CREDIT PHASEOUT.—The amendments made by 

subsection (b)(1) shall apply to taxable years ending after December 31, 2008. 

SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM 

MARINE RENEWABLES. 

(a) IN GENERAL.—Paragraph (1) of section 45(c) (relating to resources) is amended by striking ‘‘and’’ at the end of subparagraph 

(G), by striking the period at the end of subparagraph (H) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: 

‘‘(I) marine and hydrokinetic renewable energy.’’. 

(b) MARINE RENEWABLES.—Subsection (c) of section 45 is amended by adding at the end the following new paragraph: 

‘‘(10) MARINE AND HYDROKINETIC RENEWABLE ENERGY.—

‘‘(A) IN GENERAL.—The term ‘marine and hydrokinetic 

renewable energy’ means energy derived from—

‘‘(i) waves, tides, and currents in oceans, estuaries, 

and tidal areas, 

‘‘(ii) free flowing water in rivers, lakes, and streams, 

‘‘(iii) free flowing water in an irrigation system, 

canal, or other man-made channel, including projects 

that utilize nonmechanical structures to accelerate the 

flow of water for electric power production purposes, or 

‘‘(iv) differentials in ocean temperature (ocean thermal energy conversion). 


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‘‘(B) EXCEPTIONS.—Such term shall not include any energy which is derived from any source which utilizes a 

dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.’’. 

(c) DEFINITION OF FACILITY.—Subsection (d) of section 45 is 

amended by adding at the end the following new paragraph: 

‘‘(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY FACILITIES.—In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term ‘qualified facility’ means any facility owned by the taxpayer—

‘‘(A) which has a nameplate capacity rating of at least 

150 kilowatts, and 

‘‘(B) which is originally placed in service on or after the 

date of the enactment of this paragraph and before January 1, 2013.’’. 

(d) CREDIT RATE.—Subparagraph (A) of section 45(b)(4) is 

amended by striking ‘‘or (9)’’ and inserting ‘‘(9), or (11)’’. 

(e) COORDINATION WITH SMALL IRRIGATION POWER.—Paragraph 

(5) of section 45(d), as amended by this Act, is amended by striking 

‘‘January 1, 2013’’ and inserting ‘‘the date of the enactment of paragraph (11)’’. 

(f) EFFECTIVE DATE.—The amendments made by this section 

shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date. 

SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT. 

(a) EXTENSION OF CREDIT.—

(1) SOLAR ENERGY PROPERTY.—Paragraphs (2)(A)(i)(II) and 

(3)(A)(ii) of section 48(a) (relating to energy credit) are each 

amended by striking ‘‘January 1, 2009’’ and inserting ‘‘January 

1, 2017’’. 

(2) FUEL CELL PROPERTY.—Subparagraph (E) of section 

48(c)(1) (relating to qualified fuel cell property) is amended by 

striking ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

2016’’. 

(3) MICROTURBINE PROPERTY.—Subparagraph (E) of section 

48(c)(2) (relating to qualified microturbine property) is amended by striking ‘‘December 31, 2008’’ and inserting ‘‘December 

31, 2016’’. 

(b) ALLOWANCE OF ENERGY CREDIT AGAINST ALTERNATIVE MINIMUM TAX.—Subparagraph (B) of section 38(c)(4) (relating to specified credits) is amended by striking ‘‘and’’ at the end of clause (iii), 

by striking the period at the end of clause (iv) and inserting ‘‘, 

and’’, and by adding at the end the following new clause: 

‘‘(v) the credit determined under section 46 to the 

extent that such credit is attributable to the energy 

credit determined under section 48.’’. 

(c) ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM

PROPERTY.—

(1) IN GENERAL.—Section 48(a)(3)(A) (defining energy property) is amended by striking ‘‘or’’ at the end of clause (iii), by 

inserting ‘‘or’’ at the end of clause (iv), and by adding at the 

end the following new clause: 

‘‘(v) combined heat and power system property,’’. 


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(2) COMBINED HEAT AND POWER SYSTEM PROPERTY.—Section 

48 (relating to energy credit; reforestation credit) is amended 

by adding at the end the following new subsection: 

‘‘(d) COMBINED HEAT AND POWER SYSTEM PROPERTY.—For purposes of subsection (a)(3)(A)(v)—

‘‘(1) COMBINED HEAT AND POWER SYSTEM PROPERTY.—The 

term ‘combined heat and power system property’ means property comprising a system—

‘‘(A) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications), 

‘‘(B) which produces—

‘‘(i) at least 20 percent of its total useful energy in 

the form of thermal energy which is not used to 

produce electrical or mechanical power (or combination 

thereof), and 

‘‘(ii) at least 20 percent of its total useful energy in 

the form of electrical or mechanical power (or combination thereof), 

‘‘(C) the energy efficiency percentage of which exceeds 60 

percent, and 

‘‘(D) which is placed in service before January 1, 2017. 

‘‘(2) LIMITATION.—

‘‘(A) IN GENERAL.—In the case of combined heat and 

power system property with an electrical capacity in excess 

of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined 

without regard to this paragraph) for such year shall be 

equal to the amount which bears the same ratio to such 

credit as the applicable capacity bears to the capacity of 

such property. 

‘‘(B) APPLICABLE CAPACITY.—For purposes of subparagraph (A), the term ‘applicable capacity’ means 15 

megawatts or a mechanical energy capacity of more than 

20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities. 

‘‘(C) MAXIMUM CAPACITY.—The term ‘combined heat and 

power system property’ shall not include any property 

comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in 

excess of 67,000 horsepower or an equivalent combination 

of electrical and mechanical energy capacities. 

‘‘(3) SPECIAL RULES.—

‘‘(A) ENERGY EFFICIENCY PERCENTAGE.—For purposes of 

this subsection, the energy efficiency percentage of a system is the fraction—

‘‘(i) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the 

system at normal operating rates, and expected to be 

consumed in its normal application, and 

‘‘(ii) the denominator of which is the lower heating 

value of the fuel sources for the system. 


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‘‘(B) DETERMINATIONS MADE ON BTU BASIS.—The energy 

efficiency percentage and the percentages under paragraph 

(1)(B) shall be determined on a Btu basis. 

‘‘(C) INPUT AND OUTPUT PROPERTY NOT INCLUDED.—The 

term ‘combined heat and power system property’ does not 

include property used to transport the energy source to the 

facility or to distribute energy produced by the facility. 

‘‘(4) SYSTEMS USING BIOMASS.—If a system is designed to use 

biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph 

(3)(A)) for at least 90 percent of the energy source—

‘‘(A) paragraph (1)(C) shall not apply, but 

‘‘(B) the amount of credit determined under subsection 

(a) with respect to such system shall not exceed the 

amount which bears the same ratio to such amount of 

credit (determined without regard to this paragraph) as 

the energy efficiency percentage of such system bears to 60 

percent.’’. 

(d) INCREASE OF CREDIT LIMITATION FOR FUEL CELL PROPERTY.—

Subparagraph (B) of section 48(c)(1) is amended by striking ‘‘$500’’

and inserting ‘‘$1,500’’. 

(e) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN INTO ACCOUNT.—

(1) IN GENERAL.—Paragraph (3) of section 48(a) is amended 

by striking the second sentence thereof. 

(2) CONFORMING AMENDMENTS.—

(A) Paragraph (1) of section 48(c) is amended by striking 

subparagraph (D) and redesignating subparagraph (E) as 

subparagraph (D). 

(B) Paragraph (2) of section 48(c) is amended by striking 

subparagraph (D) and redesignating subparagraph (E) as 

subparagraph (D). 

(f) CLERICAL AMENDMENTS.—Paragraphs (1)(B) and (2)(B) of section 48(c) are each amended by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (a)’’. 

(g) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

on the date of the enactment of this Act. 

(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.—The 

amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 

1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits. 

(3) COMBINED HEAT AND POWER AND FUEL CELL PROPERTY.—

The amendments made by subsections (c) and (d) shall apply 

to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the 

rules of section 48(m) of the Internal Revenue Code of 1986 (as 

in effect on the day before the date of the enactment of the 

Revenue Reconciliation Act of 1990). 

(4) PUBLIC ELECTRIC UTILITY PROPERTY.—The amendments 

made by subsection (e) shall apply to periods after June 20, 

2007, in taxable years ending after such date, under rules 

similar to the rules of section 48(m) of the Internal Revenue 


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Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). 

SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. 

(a) EXTENSION.—Section 25D(g) (relating to termination) is 

amended by striking ‘‘December 31, 2008’’ and inserting ‘‘December 

31, 2014’’. (b) MAXIMUM CREDIT FOR SOLAR ELECTRIC PROPERTY.— (1) IN GENERAL.—Section 25D(b)(1)(A) (relating to maximum 

credit) is amended by striking ‘‘$2,000’’ and inserting ‘‘$4,000’’. (2) CONFORMING AMENDMENT.—Section 25D(e)(4)(A)(i) is 

amended by striking ‘‘$6,667’’ and inserting ‘‘$13,334’’. (c) CREDIT FOR RESIDENTIAL WIND PROPERTY.— (1) IN GENERAL.—Section 25D(a) (relating to allowance of 

credit) is amended by striking ‘‘and’’ at the end of paragraph 

(2), by striking the period at the end of paragraph (3) and inserting ‘‘, and’’, and by adding at the end the following new 

paragraph: ‘‘(4) 30 percent of the qualified small wind energy property 

expenditures made by the taxpayer during such year.’’. (2) LIMITATION.—Section 25D(b)(1) (relating to maximum 

credit) is amended by striking ‘‘and’’ at the end of subparagraph (B), by striking the period at the end of subparagraph 

(C) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: ‘‘(D) $500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified 

small wind energy property expenditures are made.’’. (3) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDI- TURES.—

(A) IN GENERAL.—Section 25D(d) (relating to definitions) 

is amended by adding at the end the following new paragraph: ‘‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDITURE.—The term ‘qualified small wind energy property expenditure’ means an expenditure for property which uses a wind 

turbine to generate electricity for use in connection with a 

dwelling unit located in the United States and used as a residence by the taxpayer.’’. 

(B) NO DOUBLE BENEFIT.—Section 45(d)(1) (relating to 

wind facility) is amended by adding at the end the following new sentence: ‘‘Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) 

of section 25D) is taken into account in determining the 

credit under such section.’’. 

(4) MAXIMUM EXPENDITURES IN CASE OF JOINT OCCUPANCY.—

Section 25D(e)(4)(A) (relating to maximum expenditures) is 

amended by striking ‘‘and’’ at the end of clause (ii), by striking 

the period at the end of clause (iii) and inserting ‘‘, and’’, and 

by adding at the end the following new clause: 

‘‘(iv) $1,667 in the case of each half kilowatt of capacity of wind turbines for which qualified small wind 

energy property expenditures are made.’’. 

(d) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX.—


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(1) IN GENERAL.—Subsection (c) of section 25D is amended to 

read as follows: 

‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; CARRYFORWARD OF

UNUSED CREDIT.—

‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.—In the case of a 

taxable year to which section 26(a)(2) does not apply, the credit 

allowed under subsection (a) for the taxable year shall not exceed the excess of—

‘‘(A) the sum of the regular tax liability (as defined in 

section 26(b)) plus the tax imposed by section 55, over 

‘‘(B) the sum of the credits allowable under this subpart 

(other than this section) and section 27 for the taxable 

year. 

‘‘(2) CARRYFORWARD OF UNUSED CREDIT.—

‘‘(A) RULE FOR YEARS IN WHICH ALL PERSONAL CREDITS

ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM

TAX.—In the case of a taxable year to which section 

26(a)(2) applies, if the credit allowable under subsection (a) 

exceeds the limitation imposed by section 26(a)(2) for such 

taxable year reduced by the sum of the credits allowable 

under this subpart (other than this section), such excess 

shall be carried to the succeeding taxable year and added 

to the credit allowable under subsection (a) for such succeeding taxable year. 

‘‘(B) RULE FOR OTHER YEARS.—In the case of a taxable 

year to which section 26(a)(2) does not apply, if the credit 

allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess 

shall be carried to the succeeding taxable year and added 

to the credit allowable under subsection (a) for such succeeding taxable year.’’. 

(2) CONFORMING AMENDMENTS.—

(A) Section 23(b)(4)(B) is amended by inserting ‘‘and section 25D’’ after ‘‘this section’’. 

(B) Section 24(b)(3)(B) is amended by striking ‘‘and 25B’’

and inserting ‘‘, 25B, and 25D’’. 

(C) Section 25B(g)(2) is amended by striking ‘‘section 23’’

and inserting ‘‘sections 23 and 25D’’. 

(D) Section 26(a)(1) is amended by striking ‘‘and 25B’’

and inserting ‘‘25B, and 25D’’. 

(e) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

expenditures after December 31, 2007. 

(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.—

(A) IN GENERAL.—The amendments made by subsection 

(d) shall apply to taxable years beginning after the date of 

the enactment of this Act. 

(B) APPLICATION OF EGTRRA SUNSET.—The amendments 

made by subparagraphs (A) and (B) of subsection (d)(2) 

shall be subject to title IX of the Economic Growth and 

Tax Relief Reconciliation Act of 2001 in the same manner 

as the provisions of such Act to which such amendments 

relate. 


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SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING 

POLICY. 

(a) EXTENSION FOR QUALIFIED ELECTRIC UTILITIES.—

(1) IN GENERAL.—Paragraph (3) of section 451(i) (relating to 

special rule for sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy) is amended by inserting ‘‘(before January 1, 2010, in the 

case of a qualified electric utility)’’ after ‘‘January 1, 2008’’. 

(2) QUALIFIED ELECTRIC UTILITY.—Subsection (i) of section 

451 is amended by redesignating paragraphs (6) through (10) 

as paragraphs (7) through (11), respectively, and by inserting 

after paragraph (5) the following new paragraph: 

‘‘(6) QUALIFIED ELECTRIC UTILITY.—For purposes of this subsection, the term ‘qualified electric utility’ means a person that, 

as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both—

‘‘(A) a transmitting utility (as defined in section 3(23) of 

the Federal Power Act (16 U.S.C. 796(23)) with respect to 

the transmission facilities to which the election under this 

subsection applies, and 

‘‘(B) an electric utility (as defined in section 3(22) of the 

Federal Power Act (16 U.S.C. 796(22)).’’. 

(b) EXTENSION OF PERIOD FOR TRANSFER OF OPERATIONAL CONTROL AUTHORIZED BY FERC.—Clause (ii) of section 451(i)(4)(B) is 

amended by striking ‘‘December 31, 2007’’ and inserting ‘‘the date 

which is 4 years after the close of the taxable year in which the 

transaction occurs’’. 

(c) PROPERTY LOCATED OUTSIDE THE UNITED STATES NOT TREATED AS EXEMPT UTILITY PROPERTY.—Paragraph (5) of section 451(i) 

is amended by adding at the end the following new subparagraph: 

‘‘(C) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE

UNITED STATES.—The term ‘exempt utility property’ shall 

not include any property which is located outside the 

United States.’’. 

(d) EFFECTIVE DATES.—

(1) EXTENSION.—The amendments made by subsection (a) 

shall apply to transactions after December 31, 2007. 

(2) TRANSFERS OF OPERATIONAL CONTROL.—The amendment 

made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004. 

(3) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE UNITED

STATES.—The amendment made by subsection (c) shall apply to 

transactions after the date of the enactment of this Act. 

SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS. 

(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating 

to credits against tax) is amended by adding at the end the following new subpart: 

‘‘Subpart I—Qualified Tax Credit Bonds 

‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 

‘‘Sec. 54B. New clean renewable energy bonds. 


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‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS. 

‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds a qualified tax 

credit bond on one or more credit allowance dates of the bond during any taxable year, there shall be allowed as a credit against the 

tax imposed by this chapter for the taxable year an amount equal 

to the sum of the credits determined under subsection (b) with respect to such dates. 

‘‘(b) AMOUNT OF CREDIT.—

‘‘(1) IN GENERAL.—The amount of the credit determined 

under this subsection with respect to any credit allowance date 

for a qualified tax credit bond is 25 percent of the annual credit determined with respect to such bond. 

‘‘(2) ANNUAL CREDIT.—The annual credit determined with respect to any qualified tax credit bond is the product of—

‘‘(A) the applicable credit rate, multiplied by 

‘‘(B) the outstanding face amount of the bond. 

‘‘(3) APPLICABLE CREDIT RATE.—For purposes of paragraph 

(2), the applicable credit rate is 70 percent of the rate which 

the Secretary estimates will permit the issuance of qualified 

tax credit bonds with a specified maturity or redemption date 

without discount and without interest cost to the qualified 

issuer. The applicable credit rate with respect to any qualified 

tax credit bond shall be determined as of the first day on which 

there is a binding, written contract for the sale or exchange of 

the bond. 

‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.—In the 

case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during 

which the bond is outstanding. A similar rule shall apply when 

the bond is redeemed or matures. 

‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—

‘‘(1) IN GENERAL.—The credit allowed under subsection (a) for 

any taxable year shall not exceed the excess of—

‘‘(A) the sum of the regular tax liability (as defined in 

section 26(b)) plus the tax imposed by section 55, over 

‘‘(B) the sum of the credits allowable under this part 

(other than subpart C and this subpart). 

‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable 

under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to 

the succeeding taxable year and added to the credit allowable 

under subsection (a) for such taxable year (determined before 

the application of paragraph (1) for such succeeding taxable 

year). 

‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes of this section—

‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 

credit bond’ means a new clean renewable energy bond which 

is part of an issue that meets the requirements of paragraphs 

(2), (3), (4), (5), and (6). 

‘‘(2) SPECIAL RULES RELATING TO EXPENDITURES.—


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‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if, as of the date of 

issuance, the issuer reasonably expects— ‘‘(i) 100 percent or more of the available project proceeds to be spent for 1 or more qualified purposes 

within the 3-year period beginning on such date of 

issuance, and ‘‘(ii) a binding commitment with a third party to 

spend at least 10 percent of such available project proceeds will be incurred within the 6-month period beginning on such date of issuance. ‘‘(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 3 YEARS.—

‘‘(i) IN GENERAL.—To the extent that less than 100 

percent of the available project proceeds of the issue 

are expended by the close of the expenditure period for 

1 or more qualified purposes, the issuer shall redeem 

all of the nonqualified bonds within 90 days after the 

end of such period. For purposes of this paragraph, the 

amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as 

under section 142. 

‘‘(ii) EXPENDITURE PERIOD.—For purposes of this 

subpart, the term ‘expenditure period’ means, with respect to any issue, the 3-year period beginning on the 

date of issuance. Such term shall include any extension of such period under clause (iii). ‘‘(iii) EXTENSION OF PERIOD.—Upon submission of a 

request prior to the expiration of the expenditure period (determined without regard to any extension 

under this clause), the Secretary may extend such period if the issuer establishes that the failure to expend 

the proceeds within the original expenditure period is 

due to reasonable cause and the expenditures for 

qualified purposes will continue to proceed with due 

diligence. 

‘‘(C) QUALIFIED PURPOSE.—For purposes of this paragraph, the term ‘qualified purpose’ means a purpose specified in section 54B(a)(1). ‘‘(D) REIMBURSEMENT.—For purposes of this subtitle, 

available project proceeds of an issue shall be treated as 

spent for a qualified purpose if such proceeds are used to 

reimburse the issuer for amounts paid for a qualified purpose after the date that the Secretary makes an allocation 

of bond limitation with respect to such issue, but only if—

‘‘(i) prior to the payment of the original expenditure, 

the issuer declared its intent to reimburse such expenditure with the proceeds of a qualified tax credit 

bond, ‘‘(ii) not later than 60 days after payment of the 

original expenditure, the issuer adopts an official intent to reimburse the original expenditure with such 

proceeds, and ‘‘(iii) the reimbursement is made not later than 18 

months after the date the original expenditure is paid. 


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‘‘(3) REPORTING.—An issue shall be treated as meeting the 

requirements of this paragraph if the issuer of qualified tax 

credit bonds submits reports similar to the reports required 

under section 149(e). 

‘‘(4) SPECIAL RULES RELATING TO ARBITRAGE.—

‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if the issuer satisfies 

the requirements of section 148 with respect to the proceeds of the issue. 

‘‘(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD.—An issue shall not be treated as failing to 

meet the requirements of subparagraph (A) by reason of 

any investment of available project proceeds during the expenditure period. 

‘‘(C) SPECIAL RULE FOR RESERVE FUNDS.—An issue shall 

not be treated as failing to meet the requirements of subparagraph (A) by reason of any fund which is expected to 

be used to repay such issue if—

‘‘(i) such fund is funded at a rate not more rapid 

than equal annual installments, 

‘‘(ii) such fund is funded in a manner reasonably expected to result in an amount not greater than an 

amount necessary to repay the issue, and 

‘‘(iii) the yield on such fund is not greater than the 

discount rate determined under paragraph (5)(B) with 

respect to the issue. 

‘‘(5) MATURITY LIMITATION.—

‘‘(A) IN GENERAL.—An issue shall be treated as meeting 

the requirements of this paragraph if the maturity of any 

bond which is part of such issue does not exceed the maximum term determined by the Secretary under subparagraph (B). 

‘‘(B) MAXIMUM TERM.—During each calendar month, the 

Secretary shall determine the maximum term permitted 

under this paragraph for bonds issued during the following 

calendar month. Such maximum term shall be the term 

which the Secretary estimates will result in the present 

value of the obligation to repay the principal on the bond 

being equal to 50 percent of the face amount of such bond. 

Such present value shall be determined using as a discount rate the average annual interest rate of tax-exempt 

obligations having a term of 10 years or more which are 

issued during the month. If the term as so determined is 

not a multiple of a whole year, such term shall be rounded 

to the next highest whole year. 

‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST.—An 

issue shall be treated as meeting the requirements of this 

paragraph if the issuer certifies that—

‘‘(A) applicable State and local law requirements governing conflicts of interest are satisfied with respect to 

such issue, and 

‘‘(B) if the Secretary prescribes additional conflicts of interest rules governing the appropriate Members of Congress, Federal, State, and local officials, and their spouses, 


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such additional rules are satisfied with respect to such 

issue. 

‘‘(e) OTHER DEFINITIONS.—For purposes of this subchapter—

‘‘(1) CREDIT ALLOWANCE DATE.—The term ‘credit allowance 

date’ means—

‘‘(A) March 15, 

‘‘(B) June 15, 

‘‘(C) September 15, and 

‘‘(D) December 15. 

Such term includes the last day on which the bond is outstanding. 

‘‘(2) BOND.—The term ‘bond’ includes any obligation. 

‘‘(3) STATE.—The term ‘State’ includes the District of Columbia and any possession of the United States. 

‘‘(4) AVAILABLE PROJECT PROCEEDS.—The term ‘available 

project proceeds’ means—

‘‘(A) the excess of—

‘‘(i) the proceeds from the sale of an issue, over 

‘‘(ii) the issuance costs financed by the issue (to the 

extent that such costs do not exceed 2 percent of such 

proceeds), and 

‘‘(B) the proceeds from any investment of the excess described in subparagraph (A). 

‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of this subtitle, 

the credit determined under subsection (a) shall be treated as interest which is includible in gross income. 

‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the case of a tax 

credit bond held by an S corporation or partnership, the allocation 

of the credit allowed by this section to the shareholders of such corporation or partners of such partnership shall be treated as a distribution. 

‘‘(h) BONDS HELD BY REGULATED INVESTMENT COMPANIES AND

REAL ESTATE INVESTMENT TRUSTS.—If any qualified tax credit 

bond is held by a regulated investment company or a real estate 

investment trust, the credit determined under subsection (a) shall 

be allowed to shareholders of such company or beneficiaries of such 

trust (and any gross income included under subsection (f) with respect to such credit shall be treated as distributed to such shareholders or beneficiaries) under procedures prescribed by the Secretary. 

‘‘(i) CREDITS MAY BE STRIPPED.—Under regulations prescribed by 

the Secretary—

‘‘(1) IN GENERAL.—There may be a separation (including at 

issuance) of the ownership of a qualified tax credit bond and 

the entitlement to the credit under this section with respect to 

such bond. In case of any such separation, the credit under this 

section shall be allowed to the person who on the credit allowance date holds the instrument evidencing the entitlement to 

the credit and not to the holder of the bond. 

‘‘(2) CERTAIN RULES TO APPLY.—In the case of a separation 

described in paragraph (1), the rules of section 1286 shall 

apply to the qualified tax credit bond as if it were a stripped 

bond and to the credit under this section as if it were a 

stripped coupon. 


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‘‘SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS. 

‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For purposes of 

this subpart, the term ‘new clean renewable energy bond’ means 

any bond issued as part of an issue if—

‘‘(1) 100 percent of the available project proceeds of such 

issue are to be used for capital expenditures incurred by public 

power providers, governmental bodies, or cooperative electric 

companies for one or more qualified renewable energy facilities, 

‘‘(2) the bond is issued by a qualified issuer, and 

‘‘(3) the issuer designates such bond for purposes of this section. ‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.— ‘‘(1) IN GENERAL.—The maximum aggregate face amount of 

bonds which may be designated under subsection (a) by any 

issuer shall not exceed the limitation amount allocated under 

this subsection to such issuer. 

‘‘(2) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED.—There is a national new clean renewable energy 

bond limitation of $2,000,000,000 which shall be allocated by 

the Secretary as provided in paragraph (3), except that—

‘‘(A) not more than 33 1⁄3 percent thereof may be allocated to qualified projects of public power providers, 

‘‘(B) not more than 33 1⁄3 percent thereof may be allocated to qualified projects of governmental bodies, and 

‘‘(C) not more than 33 1⁄3 percent thereof may be allocated to qualified projects of cooperative electric companies. 

‘‘(3) METHOD OF ALLOCATION.—

‘‘(A) ALLOCATION AMONG PUBLIC POWER PROVIDERS.—

After the Secretary determines the qualified projects of 

public power providers which are appropriate for receiving 

an allocation of the national new clean renewable energy 

bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in 

such manner that the amount allocated to each such 

project bears the same ratio to the cost of such project as 

the limitation under paragraph (2)(A) bears to the cost of 

all such projects. 

‘‘(B) ALLOCATION AMONG GOVERNMENTAL BODIES AND CO- OPERATIVE ELECTRIC COMPANIES.—The Secretary shall 

make allocations of the amount of the national new clean 

renewable energy bond limitation described in paragraphs 

(2)(B) and (2)(C) among qualified projects of governmental 

bodies and cooperative electric companies, respectively, in 

such manner as the Secretary determines appropriate. 

‘‘(c) DEFINITIONS.—For purposes of this section—

‘‘(1) QUALIFIED RENEWABLE ENERGY FACILITY.—The term 

‘qualified renewable energy facility’ means a qualified facility 

(as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) 

owned by a public power provider, a governmental body, or a 

cooperative electric company. 

‘‘(2) PUBLIC POWER PROVIDER.—The term ‘public power provider’ means a State utility with a service obligation, as such 


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terms are defined in section 217 of the Federal Power Act (as 

in effect on the date of the enactment of this paragraph). 

‘‘(3) GOVERNMENTAL BODY.—The term ‘governmental body’

means any State or Indian tribal government, or any political 

subdivision thereof. 

‘‘(4) COOPERATIVE ELECTRIC COMPANY.—The term ‘cooperative electric company’ means a mutual or cooperative electric 

company described in section 501(c)(12) or section 

1381(a)(2)(C). 

‘‘(5) CLEAN RENEWABLE ENERGY BOND LENDER.—The term 

‘clean renewable energy bond lender’ means a lender which is 

a cooperative which is owned by, or has outstanding loans to, 

100 or more cooperative electric companies and is in existence 

on February 1, 2002, and shall include any affiliated entity 

which is controlled by such lender. 

‘‘(6) QUALIFIED ISSUER.—The term ‘qualified issuer’ means a 

public power provider, a governmental body, a cooperative electric company, a clean renewable energy bond lender, or a notfor-profit electric utility which has received a loan or loan 

guarantee under the Rural Electrification Act.’’. 

(b) REPORTING.—Subsection (d) of section 6049 (relating to returns regarding payments of interest) is amended by adding at the 

end the following new paragraph: 

‘‘(9) REPORTING OF CREDIT ON QUALIFIED TAX CREDIT

BONDS.—

‘‘(A) IN GENERAL.—For purposes of subsection (a), the 

term ‘interest’ includes amounts includible in gross income 

under section 54A and such amounts shall be treated as 

paid on the credit allowance date (as defined in section 

54A(e)(1)). 

‘‘(B) REPORTING TO CORPORATIONS, ETC.—Except as otherwise provided in regulations, in the case of any interest 

described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i). 

‘‘(C) REGULATORY AUTHORITY.—The Secretary may prescribe such regulations as are necessary or appropriate to 

carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.’’. 

(c) CONFORMING AMENDMENTS.—

(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended by 

striking ‘‘subpart C’’ and inserting ‘‘subparts C and I’’. 

(2) Section 1397E(c)(2) is amended by striking ‘‘subpart H’’

and inserting ‘‘subparts H and I’’. 

(3) Section 6401(b)(1) is amended by striking ‘‘and H’’ and inserting ‘‘H, and I’’. 

(4) The heading of subpart H of part IV of subchapter A of 

chapter 1 is amended by striking ‘‘Certain Bonds’’ and inserting ‘‘Clean Renewable Energy Bonds’’. 

(5) The table of subparts for part IV of subchapter A of chapter 1 is amended by striking the item relating to subpart H 

and inserting the following new items: 


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‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY

BONDS. 

‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’. 

(d) APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS FINANCED UNDER TAX CREDIT BONDS.—Subchapter IV of chapter 31 

of title 40, United States Code, shall apply to projects financed 

with the proceeds of any tax credit bond (as defined in section 54A 

of the Internal Revenue Code of 1986). 

(e) EFFECTIVE DATES.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment of 

this Act. 

PART II—PROVISIONS RELATING TO CARBON 

MITIGATION AND COAL 

SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL 

PROJECT INVESTMENT CREDIT. 

(a) MODIFICATION OF CREDIT AMOUNT.—Section 48A(a) (relating 

to qualifying advanced coal project credit) is amended by striking 

‘‘and’’ at the end of paragraph (1), by striking the period at the end 

of paragraph (2) and inserting ‘‘, and’’, and by adding at the end 

the following the paragraph: ‘‘(3) 30 percent of the qualified investment for such taxable 

year in the case of projects described in clauses (iii) or (iv) of 

subsection (d)(3)(B).’’. (b) EXPANSION OF AGGREGATE CREDITS.—Section 48A(d)(3)(A) (relating to aggregate credits) is amended by striking ‘‘$1,300,000,000’’

and inserting ‘‘$2,800,000,000’’. 

(c) AUTHORIZATION OF ADDITIONAL PROJECTS.—

(1) IN GENERAL.—Subparagraph (B) of section 48A(d)(3) (relating to aggregate credits) is amended to read as follows: 

‘‘(B) PARTICULAR PROJECTS.—Of the dollar amount in 

subparagraph (A), the Secretary is authorized to certify—

‘‘(i) $800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph 

(2)(A)(i), 

‘‘(ii) $500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), 

‘‘(iii) $1,000,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph 

(2)(A)(ii), and 

‘‘(iv) $500,000,000 for other advanced coal-based 

generation technology projects the application for 

which is submitted during the period described in 

paragraph (2)(A)(ii).’’. 

(2) APPLICATION PERIOD FOR ADDITIONAL PROJECTS.—Subparagraph (A) of section 48A(d)(2) (relating to certification) is 

amended to read as follows: 

‘‘(A) APPLICATION PERIOD.—Each applicant for certification under this paragraph shall submit an application 


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meeting the requirements of subparagraph (B). An applicant may only submit an application— ‘‘(i) for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(A) during the 

3-year period beginning on the date the Secretary establishes the program under paragraph (1), and ‘‘(ii) for an allocation from the dollar amount specified in clause (iii) or (iv) of paragraph (3)(A) during the 

3-year period beginning at the earlier of the termination of the period described in clause (i) or the date 

prescribed by the Secretary.’’. (3) CAPTURE AND SEQUESTRATION OF CARBON DIOXIDE EMISSIONS REQUIREMENT.—

(A) IN GENERAL.—Section 48A(e)(1) (relating to requirements) is amended by striking ‘‘and’’ at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ‘‘; and’’, and by adding at the 

end the following new subparagraph: 

‘‘(G) in the case of any project the application for which 

is submitted during the period described in subsection 

(d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the 

case of an application for reallocated credits under subsection (d)(4)) of such project’s total carbon dioxide emissions.’’. 

(B) HIGHEST PRIORITY FOR PROJECTS WHICH SEQUESTER

CARBON DIOXIDE EMISSIONS.—Section 48A(e)(3) is amended 

by striking ‘‘and’’ at the end of subparagraph (A)(iii), by 

striking the period at the end of subparagraph (B)(3) and 

inserting ‘‘, and’’, and by adding at the end the following 

new subparagraph: ‘‘(C) give highest priority to projects with the greatest 

separation and sequestration percentage of total carbon dioxide emissions.’’. 

(C) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER.— Section 48A (relating to qualifying advanced coal project 

credit) is amended by adding at the end the following new 

subsection: ‘‘(h) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER.—The 

Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails 

to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).’’. (4) ADDITIONAL PRIORITY FOR RESEARCH PARTNERSHIPS.—Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended—

(A) by striking ‘‘and’’ at the end of clause (ii), 

(B) by redesignating clause (iii) as clause (iv), and 

(C) by inserting after clause (ii) the following new clause: ‘‘(iii) applicant participants who have a research 

partnership with an eligible educational institution (as 

defined in section 529(e)(5)), and’’. (5) CLERICAL AMENDMENT.—Section 48A(e)(3) is amended by 

striking ‘‘INTEGRATED GASIFICATION COMBINED CYCLE’’ in the 

heading and inserting ‘‘CERTAIN’’. 


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(d) COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.—Section 48A (relating to qualifying advanced coal project credit), as amended by subsection (c)(3), is amended by adding at the 

end the following new subsection: 

‘‘(i) COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.—In implementing this section or section 48B, the Secretary is 

directed to modify the terms of any competitive certification award 

and any associated closing agreement where such modification—

‘‘(1) is consistent with the objectives of such section, 

‘‘(2) is requested by the recipient of the competitive certification award, and 

‘‘(3) involves moving the project site to improve the potential 

to capture and sequester carbon dioxide emissions, reduce costs 

of transporting feedstock, and serve a broader customer base, 

unless the Secretary determines that the dollar amount of tax credits available to the taxpayer under such section would increase as 

a result of the modification or such modification would result in 

such project not being originally certified. In considering any such 

modification, the Secretary shall consult with other relevant Federal agencies, including the Department of Energy.’’. 

(e) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

credits the application for which is submitted during the period 

described in section 48A(d)(2)(A)(ii) of the Internal Revenue 

Code of 1986 and which are allocated or reallocated after the 

date of the enactment of this Act. 

(2) COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.—The amendment made by subsection (d) shall take 

effect on the date of the enactment of this Act and is applicable 

to all competitive certification awards entered into under section 48A or 48B of the Internal Revenue Code of 1986, whether 

such awards were issued before, on, or after such date of enactment. 

(3) TECHNICAL AMENDMENT.—The amendment made by subsection (c)(5) shall take effect as if included in the amendment 

made by section 1307(b) of the Energy Tax Incentives Act of 

2005. 

SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION 

INVESTMENT CREDIT. 

(a) CREDIT RATE.—Section 48B(a) (relating to qualifying gasification project credit) is amended by inserting ‘‘(30 percent in the 

case of credits allocated under subsection (d)(1)(B))’’ after ‘‘20 percent’’. 

(b) EXPANSION OF AGGREGATE CREDITS.—Section 48B(d)(1) (relating to qualifying gasification project program) is amended by striking ‘‘shall not exceed $350,000,000’’ and all that follows and inserting ‘‘shall not exceed—

‘‘(A) $350,000,000, plus 

‘‘(B) $500,000,000 for qualifying gasification projects that 

include equipment which separates and sequesters at least 

75 percent of such a project’s total carbon dioxide emissions, 

under rules similar to the rules of section 48A(d)(4).’’. 


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(c) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER.—Section 

48B (relating to qualifying gasification project credit) is amended 

by adding at the end the following new subsection: 

‘‘(f) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER.—The 

Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails 

to attain or maintain the separation and sequestration requirements for such project under subsection (d)(1).’’. 

(d) SELECTION PRIORITIES.—Section 48B(d) (relating to qualifying 

gasification project program) is amended by adding at the end the 

following new paragraph: 

‘‘(4) SELECTION PRIORITIES.—In determining which qualifying 

gasification projects to certify under this section, the Secretary 

shall—

‘‘(A) give highest priority to projects with the greatest 

separation and sequestration percentage of total carbon dioxide emissions, and 

‘‘(B) give high priority to applicant participants who 

have a research partnership with an eligible educational 

institution (as defined in section 529(e)(5)).’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after 

the date of the enactment of this Act. 

SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF QUALIFIED CARBON DIOXIDE PIPELINE 

PROPERTY. 

(a) IN GENERAL.—Section 168(e)(3)(C) (defining 7-year property) 

is amended by striking ‘‘and’’ at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) 

the following new clause: 

‘‘(v) any qualified carbon dioxide pipeline property—

‘‘(I) the original use of which commences with 

the taxpayer after the date of the enactment of 

this clause, 

‘‘(II) the original purpose of which is to transport carbon dioxide, and 

‘‘(III) which is placed in service before January 

1, 2011, and’’. 

(b) DEFINITION OF QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.—Section 168(e) (relating to classification of property) is 

amended by inserting at the end the following new paragraph: 

‘‘(8) QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.—

‘‘(A) IN GENERAL.—The term ‘qualified carbon dioxide 

pipeline property’ means property which is used in the 

United States solely to transmit qualified carbon dioxide 

from the point of capture to a secure geological storage or 

the point at which such qualified carbon dioxide is used as 

a tertiary injectant. 

‘‘(B) DEFINITIONS AND SPECIAL RULES.—For purposes of 

this paragraph—

‘‘(i) QUALIFIED CARBON DIOXIDE.—The term ‘qualified 

carbon dioxide’ means carbon dioxide captured from 

an industrial source which—


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‘‘(I) would otherwise be released into the atmosphere as industrial emission of greenhouse gas, 

and 

‘‘(II) is measured at the source of capture and 

verified at the point of disposal or injection. 

‘‘(ii) SECURE GEOLOGICAL STORAGE.—The Secretary, 

in consultation with the Administrator of the Environmental Protection Agency, shall establish regulations 

for determining adequate security measures for the geological storage of carbon dioxide under subparagraph 

(A) such that the carbon dioxide does not escape into 

the atmosphere. Such term shall include storage at 

deep saline formations and unminable coal seems 

under such conditions as the Secretary may determine 

under such regulations. 

‘‘(iii) TERTIARY INJECTANT.—The term ‘tertiary 

injectant’ has the same meaning as when used within 

section 193(b)(1).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property placed in service after the date of the enactment of this Act. 

SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO 

CERTAIN COAL PRODUCERS AND EXPORTERS. 

(a) REFUND.—

(1) COAL PRODUCERS.—

(A) IN GENERAL.—Notwithstanding subsections (a)(1) 

and (c) of section 6416 and section 6511 of the Internal 

Revenue Code of 1986, if—

(i) a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign 

country or shipped coal produced by such coal producer to a possession of the United States, the export 

or shipment of which was other than through an exporter who has filed a claim for a refund under paragraph (2), 

(ii) such coal producer filed a return on or after October 1, 1990, and on or before the date of the enactment of this Act, and 

(iii) such coal producer files a claim for refund not 

later than the close of the 30-day period beginning on 

the date of the enactment of this Act, 

then the Secretary of the Treasury shall pay to such coal 

producer an amount equal to the tax paid under section 

4121 of such Code on such coal exported by the coal producer or a party related to such coal producer. 

(B) SPECIAL RULES FOR CERTAIN TAXPAYERS.—For purposes of this section—

(i) ESTABLISHMENT OF EXPORT.—If a coal producer or 

a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall 

be deemed to have established the export of coal to a 

foreign country or shipment of coal to a possession of 

the United States under subparagraph (A)(i). 


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(ii) AMOUNT OF PAYMENT.—If a taxpayer described 

in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount awarded under the judgment described in clause (iii). 

(iii) JUDGMENT DESCRIBED.—A judgment is described 

in this subparagraph if such judgment—

(I) is made by a court of competent jurisdiction 

within the United States, 

(II) relates to the constitutionality of any tax 

paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and 

(III) is in favor of the coal producer or the party 

related to the coal producer. 

(iv) RECAPTURE.—In the case any judgment described in clause (iii) is overturned, the coal producer 

shall pay to the Secretary the amount of any payment 

received under subparagraph (A) unless the coal producer establishes the export of the coal to a foreign 

country or shipment of coal to a possession of the 

United States. 

(2) EXPORTERS.—Notwithstanding subsections (a)(1) and (c) 

of section 6416 and section 6511 of the Internal Revenue Code 

of 1986, and a judgment described in paragraph (1)(B)(iii) of 

this subsection, if—

(A) an exporter establishes that such exporter exported 

coal to a foreign country or shipped coal to a possession of 

the United States, or caused such coal to be so exported 

or shipped, 

(B) such exporter filed a return on or after October 1, 

1990, and on or before the date of the enactment of this 

Act, and 

(C) such exporter files a claim for refund not later than 

the close of the 30-day period beginning on the date of the 

enactment of this Act, 

then the Secretary of the Treasury shall pay to such exporter 

an amount equal to $0.825 per ton of such coal exported by the 

exporter or caused to be exported by the exporter. 

(b) LIMITATIONS.—Subsection (a) shall not apply with respect to 

exported coal if a credit or refund of tax imposed by section 4121 

of such Code on such coal has been allowed or made to, or if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, 

or the exporter, of such coal, as of the date that the claim is filed 

under this section with respect to such exported coal. For purposes 

of this subsection, the term ‘‘settlement with the Federal Government’’ shall not include any settlement or stipulation entered into 

as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the 

right to file an appeal, or has filed an appeal. 

(c) SUBSEQUENT REFUND PROHIBITED.—No refund shall be made 

under this section to the extent that a credit or refund of such tax 

on such exported coal has been paid to any person. 

(d) DEFINITIONS.—For purposes of this section—


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(1) COAL PRODUCER.—The term ‘‘coal producer’’ means the 

person in whom is vested ownership of the coal immediately 

after the coal is severed from the ground, without regard to the 

existence of any contractual arrangement for the sale or other 

disposition of the coal or the payment of any royalties between 

the producer and third parties. The term includes any person 

who extracts coal from coal waste refuse piles or from the silt 

waste product which results from the wet washing (or similar 

processing) of coal. 

(2) EXPORTER.—The term ‘‘exporter’’ means a person, other 

than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller 

of such coal to sell or export such coal to a third party on behalf of the producer or seller of such coal and— (A) is indicated in the shipper’s export declaration or 

other documentation as the exporter of record, or 

(B) actually exported such coal to a foreign country or 

shipped such coal to a possession of the United States, or 

caused such coal to be so exported or shipped. 

(3) RELATED PARTY.—The term ‘‘a party related to such coal 

producer’’ means a person who—

(A) is related to such coal producer through any degree 

of common management, stock ownership, or voting control, 

(B) is related (within the meaning of section 144(a)(3) of 

such Code) to such coal producer, or 

(C) has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third 

party on behalf of such coal producer. 

(e) TIMING OF REFUND.—With respect to any claim for refund 

filed pursuant to this section, the Secretary of the Treasury shall 

determine whether the requirements of this section are met not 

later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for 

refund shall be paid not later than 180 days after the Secretary 

makes such determination. 

(f) INTEREST.—Any refund paid pursuant to this section shall be 

paid by the Secretary of the Treasury with interest from the date 

of overpayment determined by using the overpayment rate and 

method under section 6621 of such Code. 

(g) DENIAL OF DOUBLE BENEFIT.—The payment under subsection 

(a) with respect to any coal shall not exceed—

(1) in the case of a payment to a coal producer, the amount 

of tax paid under section 4121 of the Internal Revenue Code 

of 1986 with respect to such coal by such coal producer or a 

party related to such coal producer, and 

(2) in the case of a payment to an exporter, an amount equal 

to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter. 

(h) APPLICATION OF SECTION.—This section applies only to claims 

on coal exported on or after October 1, 1990, through the date of 

the enactment of this Act. 

(i) STANDING NOT CONFERRED.—

(1) EXPORTERS.—With respect to exporters, this section shall 

not confer standing upon an exporter to commence, or interVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00346 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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vene in, any judicial or administrative proceeding concerning a 

claim for refund by a coal producer of any Federal or State tax, 

fee, or royalty paid by the coal producer. 

(2) COAL PRODUCERS.—With respect to coal producers, this 

section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any 

Federal or State tax, fee, or royalty paid by the producer and 

alleged to have been passed on to an exporter. 

SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE 

TAX. 

Paragraph (2) of section 4121(e) (relating to temporary increase 

termination date) is amended— (1) by striking ‘‘January 1, 2014’’ in clause (i) and inserting ‘‘December 31, 2017’’, and 

(2) by striking ‘‘January 1 after 1981’’ in clause (ii) and inserting ‘‘December 31 after 2007’’. 

SEC. 1512. CARBON AUDIT OF THE TAX CODE. 

(a) STUDY.—The Secretary of the Treasury shall enter into an 

agreement with the National Academy of Sciences to undertake a 

comprehensive review of the Internal Revenue Code of 1986 to 

identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects. 

(b) REPORT.—Not later than 2 years after the date of enactment 

of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this 

section. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $1,500,000 for the period 

of fiscal years 2008 and 2009. 

Subtitle B—Transportation and Domestic Fuel Security 

PART I—BIOFUELS 

SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS ALCOHOL. 

(a) IN GENERAL.—Subsection (a) of section 40 (relating to alcohol 

used as fuel) is amended by striking ‘‘plus’’ at the end of paragraph 

(2), by striking the period at the end of paragraph (3) and inserting 

‘‘, plus’’, and by adding at the end the following new paragraph: 

‘‘(4) the cellulosic alcohol producer credit.’’. (b) CELLULOSIC ALCOHOL PRODUCER CREDIT.— (1) IN GENERAL.—Subsection (b) of section 40 is amended by 

redesignating paragraph (5) as paragraph (6) and by inserting 

after paragraph (4) the following new paragraph: ‘‘(5) CELLULOSIC ALCOHOL PRODUCER CREDIT.— ‘‘(A) IN GENERAL.—The cellulosic alcohol producer credit 

for the taxable year is an amount equal to the applicable 

amount for each gallon of qualified cellulosic alcohol production. ‘‘(B) APPLICABLE AMOUNT.—For purposes of subparagraph (A), the applicable amount means the excess of—

‘‘(i) $1.01, over 


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‘‘(ii) the amount of the credit in effect for alcohol 

which is ethanol under subsection (b)(1) (without regard to subsection (b)(3)) at the time of the qualified 

cellulosic alcohol production. ‘‘(C) LIMITATION.— ‘‘(i) IN GENERAL.—No credit shall be allowed to any 

taxpayer under subparagraph (A) with respect to any 

qualified cellulosic alcohol production during the taxable year in excess of 60,000,000 gallons. ‘‘(ii) AGGREGATION RULE.—For purposes of clause (i), 

all members of the same controlled group of corporations (within the meaning of section 267(f)) and all 

persons under common control (within the meaning of 

section 52(b) but determined by treating an interest of 

more than 50 percent as a controlling interest) shall 

be treated as 1 person. ‘‘(iii) PARTNERSHIP, S CORPORATIONS, AND OTHER

PASS-THRU ENTITIES.—In the case of a partnership, 

trust, S corporation, or other pass-thru entity, the limitation contained in clause (i) shall be applied at the 

entity level and at the partner or similar level. ‘‘(D) QUALIFIED CELLULOSIC ALCOHOL PRODUCTION.—For 

purposes of this section, the term ‘qualified cellulosic alcohol production’ means any cellulosic biomass alcohol which 

is produced by the taxpayer and which during the taxable 

year—

‘‘(i) is sold by the taxpayer to another person— ‘‘(I) for use by such other person in the production of a qualified alcohol mixture in such other 

person’s trade or business (other than casual offfarm production), ‘‘(II) for use by such other person as a fuel in a 

trade or business, or ‘‘(III) who sells such cellulosic biomass alcohol 

at retail to another person and places such cellulosic biomass alcohol in the fuel tank of such 

other person, or 

‘‘(ii) is used or sold by the taxpayer for any purpose 

described in clause (i). 

The qualified cellulosic alcohol production of any taxpayer 

for any taxable year shall not include any alcohol which is 

purchased by the taxpayer and with respect to which such 

producer increases the proof of the alcohol by additional 

distillation. 

‘‘(E) CELLULOSIC BIOMASS ALCOHOL.—

‘‘(i) IN GENERAL.—The term ‘cellulosic biomass alcohol’ has the meaning given such term under section 

168(l)(3), but does not include any alcohol with a proof 

of less than 150. ‘‘(ii) DETERMINATION OF PROOF.—The determination 

of the proof of any alcohol shall be made without regard to any added denaturants. ‘‘(F) COORDINATION WITH SMALL ETHANOL PRODUCER

CREDIT.—No small ethanol producer credit shall be allowed 

with respect to any qualified cellulosic alcohol production 


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if credit is determined with respect to such production 

under this paragraph. 

‘‘(G) ALLOCATION OF CELLULOSIC PRODUCER CREDIT TO

PATRONS OF COOPERATIVE.—Rules similar to the rules 

under subsection (g)(6) shall apply for purposes of this 

paragraph. 

‘‘(H) APPLICATION OF PARAGRAPH.—This paragraph shall 

apply with respect to qualified cellulosic alcohol production 

after December 31, 2007, and before January 1, 2014.’’. 

(2) TERMINATION DATE NOT TO APPLY.—Subsection (e) of section 40 (relating to termination) is amended—

(A) by inserting ‘‘or subsection (b)(5)(H)’’ after ‘‘by reason 

of paragraph (1)’’ in paragraph (2), and 

(B) by adding at the end the following new paragraph: 

‘‘(3) EXCEPTION FOR CELLULOSIC ALCOHOL PRODUCER CREDIT.—Paragraph (1) shall not apply to the portion of the credit 

allowed under this section by reason of subsection (a)(4).’’. 

(c) ALCOHOL NOT USED AS A FUEL, ETC.—

(1) IN GENERAL.—Paragraph (3) of section 40(d) is amended 

by redesignating subparagraph (D) as subparagraph (E) and by 

inserting after subparagraph (C) the following new subparagraph: 

‘‘(D) CELLULOSIC ALCOHOL PRODUCER CREDIT.—If—

‘‘(i) any credit is determined under subsection (a)(4), 

and 

‘‘(ii) any person does not use such fuel for a purpose 

described in subsection (b)(5)(D), 

then there is hereby imposed on such person a tax equal 

to the applicable amount for each gallon of such cellulosic 

biomass alcohol.’’. 

(2) CONFORMING AMENDMENTS.—

(A) Subparagraph (C) of section 40(d)(3) is amended by 

striking ‘‘PRODUCER’’ in the heading and inserting ‘‘SMALL

ETHANOL PRODUCER’’. 

(B) Subparagraph (E) of section 40(d)(3), as redesignated 

by paragraph (1), is amended by striking ‘‘or (C)’’ and inserting ‘‘(C), or (D)’’. 

(d) LIMITATION TO CELLULOSIC ALCOHOL WITH CONNECTION TO

THE UNITED STATES.—Subsection (d) of section 40, as amended by 

this Act, is amended by adding at the end the following new paragraph: 

‘‘(7) LIMITATION TO CELLULOSIC ALCOHOL WITH CONNECTION

TO THE UNITED STATES.—No cellulosic alcohol producer credit 

shall be determined under subsection (a) with respect to any 

alcohol unless such alcohol is produced in the United States.’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to fuel produced after December 31, 2007. 

SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL FUEL PLANT PROPERTY. 

(a) IN GENERAL.—Paragraph (3) of section 168(l) (relating to special allowance for cellulosic biomass ethanol plant property) is 

amended to read as follows: 

‘‘(3) CELLULOSIC BIOMASS ALCOHOL.—For purposes of this 

subsection, the term ‘cellulosic biomass alcohol’ means any alVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00349 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

hmoore on PRODPC68 with HMRPT
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cohol produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.’’. 

(b) CONFORMING AMENDMENTS.—

(1) Subsection (l) of section 168 is amended by striking ‘‘cellulosic biomass ethanol’’ each place it appears and inserting 

‘‘cellulosic biomass alcohol’’. 

(2) The heading of section 168(l) is amended by striking 

‘‘CELLULOSIC BIOMASS ETHANOL’’ and inserting ‘‘CELLULOSIC

BIOMASS ALCOHOL’’. 

(3) The heading of paragraph (2) of section 168(l) is amended 

by striking ‘‘CELLULOSIC BIOMASS ETHANOL’’ and inserting ‘‘CELLULOSIC BIOMASS ALCOHOL’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date. 

SEC. 1523. MODIFICATION OF ALCOHOL CREDIT. 

(a) INCOME TAX CREDIT.—Subsection (h) of section 40 (relating to 

reduced credit for ethanol blenders) is amended by adding at the 

end the following new paragraph: 

‘‘(3) REDUCED AMOUNT AFTER SALE OF 7,500,000,000 GALLONS.—

‘‘(A) IN GENERAL.—In the case of any calendar year beginning after the calendar year described in subparagraph 

(B), the last row in the table in paragraph (2) shall be applied by substituting ‘46 cents’ for ‘51 cents’. 

‘‘(B) CALENDAR YEAR DESCRIBED.—The calendar year described in this subparagraph is the first calendar year beginning after 2007 during which 7,500,000,000 gallons of 

ethanol (including cellulosic ethanol) have been produced 

in or imported into the United States, as certified by the 

Secretary, in consultation with the Administrator of the 

Environmental Protection Agency.’’. 

(b) EXCISE TAX CREDIT.—

(1) IN GENERAL.—Paragraph (2) of section 6426(b) (relating 

to alcohol fuel mixture credit) is amended by adding at the end 

the following new subparagraph: 

‘‘(C) REDUCED AMOUNT AFTER SALE OF 7,500,000,000 GALLONS.—In the case of any alcohol fuel mixture produced in 

a calendar year beginning after the calendar year described in section 40(h)(3)(B), subparagraph (A) shall be 

applied by substituting ‘46 cents’ for ‘51 cents’.’’. 

(2) CONFORMING AMENDMENT.—Subparagraph (A) of section 

6426(b)(2) is amended by striking ‘‘subparagraph (B)’’ and inserting ‘‘subparagraphs (B) and (C)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 

SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL. 

(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) 

are each amended by striking ‘‘December 31, 2008’’ and inserting 

‘‘December 31, 2010’’. 

(b) UNIFORM TREATMENT OF DIESEL PRODUCED FROM BIOMASS.—

Paragraph (3) of section 40A(f) is amended—


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(1) by striking ‘‘using a thermal depolymerization process’’, 

and 

(2) by striking ‘‘or D396’’ in subparagraph (B) and inserting 

‘‘or other equivalent standard approved by the Secretary for 

fuels to be used in diesel-powered highway vehicles’’. 

(c) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Paragraph (3) of 

section 40A(f) (defining renewable diesel) is amended by adding at 

the end the following new flush sentence: 

‘‘The term ‘renewable diesel’ also means fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society 

of Testing and Materials specification for aviation turbine 

fuel.’’. 

(d) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to fuel produced, 

and sold or used, after the date of the enactment of this Act. 

(2) UNIFORM TREATMENT OF DIESEL PRODUCED FROM BIOMASS.—The amendments made by subsection (b) shall apply to 

fuel produced, and sold or used, after the date which is 30 days 

after the date of the enactment of this Act. 

SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL 

CREDIT. 

(a) COPRODUCTION WITH PETROLEUM FEEDSTOCK.—

(1) IN GENERAL.—Paragraph (3) of section 40A(f) (defining renewable diesel), as amended by this Act, is amended by adding 

at the end the following sentence: ‘‘Such term does not include 

any fuel derived from coprocessing biomass with a feedstock 

which is not biomass. For purposes of this paragraph, the term 

‘biomass’ has the meaning given such term by section 

45K(c)(3).’’

(2) CONFORMING AMENDMENT.—Paragraph (3) of section 

40A(f) is amended by striking ‘‘(as defined in section 

45K(c)(3))’’. 

(b) CLARIFICATION OF ELIGIBILITY FOR ALTERNATIVE FUEL CREDIT.—

(1) IN GENERAL.—Subparagraph (F) of section 6426(d)(2) is 

amended by striking ‘‘hydrocarbons’’ and inserting ‘‘fuel’’. 

(2) CONFORMING AMENDMENT.—Section 6426 is amended by 

adding at the end the following new subsection: 

‘‘(h) DENIAL OF DOUBLE BENEFIT.—No credit shall be determined 

under subsection (d) or (e) with respect to any fuel with respect to 

which credit may be determined under subsection (b) or (c) or 

under section 40 or 40A.’’. 

(c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to fuel produced, 

and sold or used, after December 31, 2007. 

(2) CLARIFICATION OF ELIGIBILITY FOR ALTERNATIVE FUEL

CREDIT.—The amendment made by subsection (b) shall take effect as if included in section 11113 of the Safe, Accountable, 

Flexible, Efficient Transportation Equity Act: A Legacy for 

Users. 


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SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO 

NEXUS TO THE UNITED STATES. 

(a) ALCOHOL FUELS CREDIT.—Subsection (d) of section 40 is 

amended by adding at the end the following new paragraph: 

‘‘(6) LIMITATION TO ALCOHOL WITH CONNECTION TO THE

UNITED STATES.—No credit shall be determined under this section with respect to any alcohol which is produced outside the 

United States for use as a fuel outside the United States. For 

purposes of this paragraph, the term ‘United States’ includes 

any possession of the United States.’’. 

(b) BIODIESEL FUELS CREDIT.—Subsection (d) of section 40A is 

amended by adding at the end the following new paragraph: 

‘‘(5) LIMITATION TO BIODIESEL WITH CONNECTION TO THE

UNITED STATES.—No credit shall be determined under this section with respect to any biodiesel which is produced outside the 

United States for use as a fuel outside the United States. For 

purposes of this paragraph, the term ‘United States’ includes 

any possession of the United States.’’. 

(c) EXCISE TAX CREDIT.—

(1) IN GENERAL.—Section 6426, as amended by this Act, is 

amended by adding at the end the following new subsection: 

‘‘(i) LIMITATION TO FUELS WITH CONNECTION TO THE UNITED

STATES.—

‘‘(1) ALCOHOL.—No credit shall be determined under this section with respect to any alcohol which is produced outside the 

United States for use as a fuel outside the United States. 

‘‘(2) BIODIESEL AND ALTERNATIVE FUELS.—No credit shall be 

determined under this section with respect to any biodiesel or 

alternative fuel which is produced outside the United States 

for use as a fuel outside the United States. 

For purposes of this subsection, the term ‘United States’ includes 

any possession of the United States.’’. 

(2) CONFORMING AMENDMENT.—Subsection (e) of section 6427 

is amended by redesignating paragraph (5) as paragraph (6) 

and by inserting after paragraph (4) the following new paragraph: 

‘‘(5) LIMITATION TO FUELS WITH CONNECTION TO THE UNITED

STATES.—No amount shall be payable under paragraph (1) or 

(2) with respect to any mixture or alternative fuel if credit is 

not allowed with respect to such mixture or alternative fuel by 

reason of section 6426(i).’’. 

(d) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

as if included in section 301 of the American Jobs Creation Act 

of 2004. 

(2) ALTERNATIVE FUEL CREDITS.—So much of the amendments made by this section as relate to the alternative fuel 

credit or the alternative fuel mixture credit shall take effect as 

if included in section 11113 of the Safe, Accountable, Flexible, 

Efficient Transportation Equity Act: A Legacy for Users. 

(3) RENEWABLE DIESEL.—So much of the amendments made 

by this section as relate to renewable diesel shall take effect 

as if included in section 1346 of the Energy Policy Act of 2005. 


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SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS. 

(a) STUDY.—The Secretary of the Treasury, in consultation with 

the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency, shall enter 

into an agreement with the National Academy of Sciences to 

produce an analysis of current scientific findings to determine—

(1) current biofuels production, as well as projections for future production, 

(2) the maximum amount of biofuels production capable on 

United States farmland, 

(3) the domestic effects of a dramatic increase in biofuels 

production on, for example—

(A) the price of fuel, 

(B) the price of land in rural and suburban communities, 

(C) crop acreage and other land use, 

(D) the environment, due to changes in crop acreage, fertilizer use, runoff, water use, emissions from vehicles utilizing biofuels, and other factors, 

(E) the price of feed, 

(F) the selling price of grain crops, 

(G) exports and imports of grains, 

(H) taxpayers, through cost or savings to commodity crop 

payments, and 

(I) the expansion of refinery capacity, 

(4) the ability to convert corn ethanol plants for other uses, 

such as cellulosic ethanol or biodiesel, 

(5) a comparative analysis of corn ethanol versus other 

biofuels and renewable energy sources, considering cost, energy 

output, and ease of implementation, and 

(6) the need for additional scientific inquiry, and specific 

areas of interest for future research. 

(b) REPORT.—The National Academy of Sciences shall submit an 

initial report of the findings of the report required under subsection 

(a) to the Congress not later than 3 months after the date of the 

enactment of this Act, and a final report not later than 6 months 

after such date of enactment. 

PART II—ADVANCED TECHNOLOGY MOTOR 

VEHICLES 

SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 

MOTOR VEHICLES. 

(a) IN GENERAL.—Subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end 

the following new section: 

‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. 

‘‘(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit 

against the tax imposed by this chapter for the taxable year an 

amount equal to the sum of the credit amounts determined under 

subsection (b) with respect to each new qualified plug-in electric 

drive motor vehicle placed in service by the taxpayer during the 

taxable year. 

‘‘(b) PER VEHICLE DOLLAR LIMITATION.—


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‘‘(1) IN GENERAL.—The amount determined under this subsection with respect to any new qualified plug-in electric drive 

motor vehicle is the sum of the amounts determined under 

paragraphs (2) and (3) with respect to such vehicle. ‘‘(2) BASE AMOUNT.—The amount determined under this 

paragraph is $3,000. ‘‘(3) BATTERY CAPACITY.—In the case of a vehicle which 

draws propulsion energy from a battery with not less than 5 

kilowatt hours of capacity, the amount determined under this 

paragraph is $200, plus $200 for each kilowatt hour of capacity 

in excess of 5 kilowatt hours. The amount determined under 

this paragraph shall not exceed $2,000. ‘‘(c) APPLICATION WITH OTHER CREDITS.—

‘‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT.—So much of the credit which would be allowed 

under subsection (a) for any taxable year (determined without 

regard to this subsection) that is attributable to property of a 

character subject to an allowance for depreciation shall be 

treated as a credit listed in section 38(b) for such taxable year 

(and not allowed under subsection (a)). 

‘‘(2) PERSONAL CREDIT.— ‘‘(A) IN GENERAL.—For purposes of this title, the credit 

allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated 

as a credit allowable under subpart A for such taxable 

year. ‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the case 

of a taxable year to which section 26(a)(2) does not apply, 

the credit allowed under subsection (a) for any taxable 

year (determined after application of paragraph (1)) shall 

not exceed the excess of— ‘‘(i) the sum of the regular tax liability (as defined 

in section 26(b)) plus the tax imposed by section 55, 

over 

‘‘(ii) the sum of the credits allowable under subpart 

A (other than this section and sections 23 and 25D) 

and section 27 for the taxable year. 

‘‘(d) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE.— For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘new qualified plug-in electric 

drive motor vehicle’ means a motor vehicle (as defined in section 30(c)(2))—

‘‘(A) the original use of which commences with the taxpayer, 

‘‘(B) which is acquired for use or lease by the taxpayer 

and not for resale, 

‘‘(C) which is made by a manufacturer, 

‘‘(D) which has a gross vehicle weight rating of less than 

14,000 pounds, ‘‘(E) which has received a certificate of conformity under 

the Clean Air Act and meets or exceeds the Bin 5 Tier II 

emission standard established in regulations prescribed by 

the Administrator of the Environmental Protection Agency 

under section 202(i) of the Clean Air Act for that make 

and model year vehicle, and 


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‘‘(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— ‘‘(i) has a capacity of not less than 4 kilowatt hours, 

and ‘‘(ii) is capable of being recharged from an external 

source of electricity. ‘‘(2) EXCEPTION.—The term ‘new qualified plug-in electric 

drive motor vehicle’ shall not include any vehicle which is not 

a passenger automobile or light truck if such vehicle has a 

gross vehicle weight rating of less than 8,500 pounds. ‘‘(3) OTHER TERMS.—The terms ‘passenger automobile’, ‘light 

truck’, and ‘manufacturer’ have the meanings given such terms 

in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of 

title II of the Clean Air Act (42 U.S.C. 7521 et seq.). ‘‘(4) BATTERY CAPACITY.—The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state 

of charge. 

‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED PLUG-IN ELEC- TRIC DRIVE MOTOR VEHICLES ELIGIBLE FOR CREDIT.— ‘‘(1) IN GENERAL.—In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only 

the applicable percentage of the credit otherwise allowable 

under subsection (a) shall be allowed. ‘‘(2) PHASEOUT PERIOD.—For purposes of this subsection, the 

phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes 

the first date on which the number of new qualified plug-in 

electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in 

the United States after the date of the enactment of this section, is at least 60,000. 

‘‘(3) APPLICABLE PERCENTAGE.—For purposes of paragraph 

(1), the applicable percentage is— ‘‘(A) 50 percent for the first 2 calendar quarters of the 

phaseout period, ‘‘(B) 25 percent for the 3d and 4th calendar quarters of 

the phaseout period, and ‘‘(C) 0 percent for each calendar quarter thereafter. ‘‘(4) CONTROLLED GROUPS.—Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. 

‘‘(f) SPECIAL RULES.—

‘‘(1) BASIS REDUCTION.—The basis of any property for which 

a credit is allowable under subsection (a) shall be reduced by 

the amount of such credit (determined without regard to subsection (c)). 

‘‘(2) RECAPTURE.—The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under 

subsection (a) with respect to any property which ceases to be 

property eligible for such credit. ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT

QUALIFIED.—No credit shall be allowed under subsection (a) 

with respect to any property referred to in section 50(b)(1) or 


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with respect to the portion of the cost of any property taken 

into account under section 179. ‘‘(4) ELECTION NOT TO TAKE CREDIT.—No credit shall be allowed under subsection (a) for any vehicle if the taxpayer 

elects to not have this section apply to such vehicle. ‘‘(5) PROPERTY USED BY TAX-EXEMPT ENTITY; INTERACTION

WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS.— Rules similar to the rules of paragraphs (6) and (10) of section 

30B(h) shall apply for purposes of this section.’’. (b) COORDINATION WITH ALTERNATIVE MOTOR VEHICLE CREDIT.— Section 30B(d)(3) is amended by adding at the end the following 

new subparagraph: ‘‘(D) EXCLUSION OF PLUG-IN VEHICLES.—Any vehicle with 

respect to which a credit is allowable under section 30D 

(determined without regard to subsection (c) thereof) shall 

not be taken into account under this section.’’. (c) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.—Section 

38(b), as amended by this Act, is amended— (1) by striking ‘‘and’’ each place it appears at the end of any 

paragraph, 

(2) by striking ‘‘plus’’ each place it appears at the end of any 

paragraph, 

(3) by striking the period at the end of paragraph (31) and 

inserting ‘‘, plus’’, and 

(4) by adding at the end the following new paragraph: 

‘‘(32) the portion of the new qualified plug-in electric drive 

motor vehicle credit to which section 30D(c)(1) applies.’’. 

(d) CONFORMING AMENDMENTS.—

(1)(A) Section 24(b)(3)(B), as amended by this Act, is amended by striking ‘‘and 25D’’ and inserting ‘‘25D, and 30D’’. 

(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘30D,’’

after ‘‘25D,’’. 

(C) Section 25B(g)(2), as amended by this Act, is amended by 

striking ‘‘and 25D’’ and inserting ‘‘, 25D, and 30D’’. (D) Section 26(a)(1), as amended by this Act, is amended by 

striking ‘‘and 25D’’ and inserting ‘‘25D, and 30D’’. (E) Section 1400C(d)(2) is amended by striking ‘‘and 25D’’ and inserting ‘‘25D, and 30D’’. (2) Section 1016(a) is amended by striking ‘‘and’’ at the end 

of paragraph (36), by striking the period at the end of paragraph (37) and inserting ‘‘, and’’, and by adding at the end the 

following new paragraph: ‘‘(38) to the extent provided in section 30D(f)(1).’’. (3) Section 6501(m) is amended by inserting ‘‘30D(f)(4),’’ after ‘‘30C(e)(5),’’. (4) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the 

following new item: ‘‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’’. 

(e) TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A

PERSONAL CREDIT.—

(1) IN GENERAL.—Paragraph (2) of section 30B(g) is amended 

to read as follows: 

‘‘(2) PERSONAL CREDIT.—The credit allowed under subsection 

(a) for any taxable year (after application of paragraph (1)) 


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shall be treated as a credit allowable under subpart A for such 

taxable year.’’. 

(2) CONFORMING AMENDMENTS.—

(A) Subparagraph (A) of section 30C(d)(2) is amended by 

striking ‘‘sections 27, 30, and 30B’’ and inserting ‘‘sections 

27 and 30’’. 

(B) Paragraph (3) of section 55(c) is amended by striking 

‘‘30B(g)(2),’’. 

(f) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

taxable years beginning after December 31, 2007. 

(2) TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS

PERSONAL CREDIT.—The amendments made by subsection (e) 

shall apply to taxable years beginning after December 31, 

2006. 

(g) APPLICATION OF EGTRRA SUNSET.—The amendment made by 

subsection (d)(1)(A) shall be subject to title IX of the Economic 

Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. 

SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND ADVANCED INSULATION. 

(a) IN GENERAL.—Section 4053 (relating to exemptions) is 

amended by adding at the end the following new paragraphs: 

‘‘(9) IDLING REDUCTION DEVICE.—Any device or system of devices which—

‘‘(A) is designed to provide to a vehicle those services 

(such as heat, air conditioning, or electricity) that would 

otherwise require the operation of the main drive engine 

while the vehicle is temporarily parked or remains stationary using either—

‘‘(i) an all electric unit, such as a battery powered 

unit or from grid-supplied electricity, or 

‘‘(ii) a dual fuel unit powered by diesel or other 

fuels, and capable of providing such services from gridsupplied electricity or on-truck batteries alone, and 

‘‘(B) is certified by the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, to reduce 

long-duration idling of such vehicle at a motor vehicle rest 

stop or other location where such vehicles are temporarily 

parked or remain stationary. 

For purposes of subparagraph (B), the term ‘long-duration 

idling’ means the operation of a main drive engine, for a period 

greater than 15 consecutive minutes, where the main drive engine is not engaged in gear. Such term does not apply to routine stoppages associated with traffic movement or congestion. 

‘‘(10) ADVANCED INSULATION.—Any insulation that has an R 

value of not less than R35 per inch.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall 

apply to sales or installations after December 31, 2007. 


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PART III—OTHER TRANSPORTATION 

PROVISIONS 

SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS. 

(a) IN GENERAL.—Part I of subchapter Y of chapter 1 is amended 

by redesignating section 1400L as section 1400K and by adding at 

the end the following new section: 

‘‘SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS. 

‘‘(a) IN GENERAL.—In the case of a New York Liberty Zone governmental unit, there shall be allowed as a credit against any taxes 

imposed for any payroll period by section 3402 for which such governmental unit is liable under section 3403 an amount equal to so 

much of the portion of the qualifying project expenditure amount 

allocated under subsection (b)(3) to such governmental unit for the 

calendar year as is allocated by such governmental unit to such period under subsection (b)(4). 

‘‘(b) QUALIFYING PROJECT EXPENDITURE AMOUNT.—For purposes 

of this section—

‘‘(1) IN GENERAL.—The term ‘qualifying project expenditure 

amount’ means, with respect to any calendar year, the sum 

of—

‘‘(A) the total expenditures paid or incurred during such 

calendar year by all New York Liberty Zone governmental 

units and the Port Authority of New York and New Jersey 

for any portion of qualifying projects located wholly within 

the City of New York, New York, and 

‘‘(B) any such expenditures—

‘‘(i) paid or incurred in any preceding calendar year 

which begins after the date of enactment of this section, and 

‘‘(ii) not previously allocated under paragraph (3). ‘‘(2) QUALIFYING PROJECT.—The term ‘qualifying project’

means any transportation infrastructure project, including 

highways, mass transit systems, railroads, airports, ports, and 

waterways, in or connecting with the New York Liberty Zone 

(as defined in section 1400K(h)), which is designated as a 

qualifying project under this section jointly by the Governor of 

the State of New York and the Mayor of the City of New York, 

New York. 

‘‘(3) GENERAL ALLOCATION.— ‘‘(A) IN GENERAL.—The Governor of the State of New 

York and the Mayor of the City of New York, New York, 

shall jointly allocate to each New York Liberty Zone governmental unit the portion of the qualifying project expenditure amount which may be taken into account by 

such governmental unit under subsection (a) for any calendar year in the credit period. 

‘‘(B) AGGREGATE LIMIT.—The aggregate amount which 

may be allocated under subparagraph (A) for all calendar 

years in the credit period shall not exceed $2,000,000,000. 

‘‘(C) ANNUAL LIMIT.—The aggregate amount which may 

be allocated under subparagraph (A) for any calendar year 

in the credit period shall not exceed the sum of—


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‘‘(i) $115,000,000 ($425,000,000 in the case of the 

last 2 years in the credit period), plus ‘‘(ii) the aggregate amount authorized to be allocated 

under this paragraph for all preceding calendar years 

in the credit period which was not so allocated. ‘‘(D) UNALLOCATED AMOUNTS AT END OF CREDIT PE- RIOD.—If, as of the close of the credit period, the amount 

under subparagraph (B) exceeds the aggregate amount allocated under subparagraph (A) for all calendar years in 

the credit period, the Governor of the State of New York 

and the Mayor of the City of New York, New York, may 

jointly allocate to New York Liberty Zone governmental 

units for any calendar year in the 5-year period following 

the credit period an amount equal to— ‘‘(i) the lesser of— ‘‘(I) such excess, or 

‘‘(II) the qualifying project expenditure amount 

for such calendar year, reduced by ‘‘(ii) the aggregate amount allocated under this subparagraph for all preceding calendar years. ‘‘(4) ALLOCATION TO PAYROLL PERIODS.—Each New York Liberty Zone governmental unit which has been allocated a portion of the qualifying project expenditure amount under paragraph (3) for a calendar year may allocate such portion to payroll periods beginning in such calendar year as such governmental unit determines appropriate. ‘‘(c) CARRYOVER OF UNUSED ALLOCATIONS.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), if the 

amount allocated under subsection (b)(3) to a New York Liberty Zone governmental unit for any calendar year exceeds the 

aggregate taxes imposed by section 3402 for which such governmental unit is liable under section 3403 for periods beginning in such year, such excess shall be carried to the succeeding calendar year and added to the allocation of such governmental unit for such succeeding calendar year. 

‘‘(2) REALLOCATION.—If a New York Liberty Zone governmental unit does not use an amount allocated to it under subsection (b)(3) within the time prescribed by the Governor of the 

State of New York and the Mayor of the City of New York, 

New York, then such amount shall after such time be treated 

for purposes of subsection (b)(3) in the same manner as if it 

had never been allocated. ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this section—

‘‘(1) CREDIT PERIOD.—The term ‘credit period’ means the 12- 

year period beginning on January 1, 2008. 

‘‘(2) NEW YORK LIBERTY ZONE GOVERNMENTAL UNIT.—The 

term ‘New York Liberty Zone governmental unit’ means—

‘‘(A) the State of New York, 

‘‘(B) the City of New York, New York, and 

‘‘(C) any agency or instrumentality of such State or City. ‘‘(3) TREATMENT OF FUNDS.—Any expenditure for a qualifying 

project taken into account for purposes of the credit under this 

section shall be considered State and local funds for the purpose of any Federal program. 


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‘‘(4) TREATMENT OF CREDIT AMOUNTS FOR PURPOSES OF WITHHOLDING TAXES.—For purposes of this title, a New York Liberty Zone governmental unit shall be treated as having paid to 

the Secretary, on the day on which wages are paid to employees, an amount equal to the amount of the credit allowed to 

such entity under subsection (a) with respect to such wages, 

but only if such governmental unit deducts and withholds 

wages for such payroll period under section 3401 (relating to 

wage withholding). 

‘‘(e) REPORTING.—The Governor of the State of New York and the 

Mayor of the City of New York, New York, shall jointly submit to 

the Secretary an annual report—

‘‘(1) which certifies—

‘‘(A) the qualifying project expenditure amount for the 

calendar year, and 

‘‘(B) the amount allocated to each New York Liberty 

Zone governmental unit under subsection (b)(3) for the calendar year, and 

‘‘(2) includes such other information as the Secretary may require to carry out this section. 

‘‘(f) GUIDANCE.—The Secretary may prescribe such guidance as 

may be necessary or appropriate to ensure compliance with the 

purposes of this section.’’. 

(b) TERMINATION OF SPECIAL ALLOWANCE AND EXPENSING.—Subparagraph (A) of section 1400K(b)(2), as redesignated by subsection 

(a), is amended by striking the parenthetical therein and inserting 

‘‘(in the case of nonresidential real property and residential rental 

property, the date of the enactment of the Clean Renewable Energy 

and Conservation Tax Act of 2007 or, if acquired pursuant to a 

binding contract in effect on such enactment date, December 31, 

2009)’’. 

(c) CONFORMING AMENDMENTS.—

(1) Section 38(c)(3)(B) is amended by striking ‘‘section 

1400L(a)’’ and inserting ‘‘section 1400K(a)’’. 

(2) Section 168(k)(2)(D)(ii) is amended by striking ‘‘section 

1400L(c)(2)’’ and inserting ‘‘section 1400K(c)(2)’’. 

(3) The table of sections for part I of subchapter Y of chapter 

1 is amended by redesignating the item relating to section 

1400L as an item relating to section 1400K and by inserting 

after such item the following new item: 

‘‘Sec. 1400L. New York Liberty Zone tax credits.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 

SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS. 

(a) IN GENERAL.—Paragraph (1) of section 132(f) of the Internal 

Revenue Code of 1986 (relating to general rule for qualified transportation fringe) is amended by adding at the end the following: 

‘‘(D) Any qualified bicycle commuting reimbursement.’’. 

(b) LIMITATION ON EXCLUSION.—Paragraph (2) of section 132(f) of 

such Code is amended by striking ‘‘and’’ at the end of subparagraph 

(A), by striking the period at the end of subparagraph (B) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: 


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‘‘(C) the applicable annual limitation in the case of any 

qualified bicycle commuting reimbursement.’’. (c) DEFINITIONS.—Paragraph (5) of section 132(f) of such Code 

(relating to definitions) is amended by adding at the end the following: ‘‘(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIM- BURSEMENT.— ‘‘(i) QUALIFIED BICYCLE COMMUTING REIMBURSE- MENT.—The term ‘qualified bicycle commuting reimbursement’ means, with respect to any calendar year, 

any employer reimbursement during the 15-month period beginning with the first day of such calendar year 

for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle 

and bicycle improvements, repair, and storage, if such 

bicycle is regularly used for travel between the employee’s residence and place of employment. ‘‘(ii) APPLICABLE ANNUAL LIMITATION.—The term ‘applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 

multiplied by the number of qualified bicycle commuting months during such year. ‘‘(iii) QUALIFIED BICYCLE COMMUTING MONTH.—The 

term ‘qualified bicycle commuting month’ means, with 

respect to any employee, any month during which 

such employee— ‘‘(I) regularly uses the bicycle for a substantial 

portion of the travel between the employee’s residence and place of employment, and ‘‘(II) does not receive any benefit described in 

subparagraph (A), (B), or (C) of paragraph (1).’’. (d) CONSTRUCTIVE RECEIPT OF BENEFIT.—Paragraph (4) of section 132(f) is amended by inserting ‘‘(other than a qualified bicycle 

commuting reimbursement)’’ after ‘‘qualified transportation fringe’’. (e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2007. 

Subtitle C—Energy Conservation and Efficiency 

PART I—CONSERVATION TAX CREDIT BONDS 

SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS. 

(a) IN GENERAL.—Subpart I of part IV of subchapter A of chapter 

1, as added by this title, is amended by adding at the end the following new section: 

‘‘SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS. 

‘‘(a) QUALIFIED ENERGY CONSERVATION BOND.—For purposes of 

this subchapter, the term ‘qualified energy conservation bond’ means any bond issued as part of an issue if— ‘‘(1) 100 percent of the available project proceeds of such 

issue are to be used for one or more qualified conservation purposes, ‘‘(2) the bond is issued by a State or local government, and 

‘‘(3) the issuer designates such bond for purposes of this section. 


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‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The maximum aggregate face amount of bonds which may be designated 

under subsection (a) by any issuer shall not exceed the limitation 

amount allocated to such issuer under subsection (d). 

‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED.—

There is a national qualified energy conservation bond limitation of 

$3,000,000,000. 

‘‘(d) ALLOCATIONS.—

‘‘(1) IN GENERAL.—The limitation applicable under subsection 

(c) shall be allocated by the Secretary among the States in proportion to the population of the States. 

‘‘(2) ALLOCATIONS TO LARGEST LOCAL GOVERNMENTS.—

‘‘(A) IN GENERAL.—In the case of any State in which 

there is a large local government, each such local government shall be allocated a portion of such State’s allocation 

which bears the same ratio to the State’s allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State. 

‘‘(B) ALLOCATION OF UNUSED LIMITATION TO STATE.—The 

amount allocated under this subsection to a large local 

government may be reallocated by such local government 

to the State in which such local government is located. 

‘‘(C) LARGE LOCAL GOVERNMENT.—For purposes of this 

section, the term ‘large local government’ means any municipality or county if such municipality or county has a 

population of 100,000 or more. 

‘‘(3) ALLOCATION TO ISSUERS; RESTRICTION ON PRIVATE ACTIVITY BONDS.—Any allocation under this subsection to a State or 

large local government shall be allocated by such State or large 

local government to issuers within the State in a manner that 

results in not less than 70 percent of the allocation to such 

State or large local government being used to designate bonds 

which are not private activity bonds. 

‘‘(e) QUALIFIED CONSERVATION PURPOSE.—For purposes of this 

section—

‘‘(1) IN GENERAL.—The term ‘qualified conservation purpose’

means any of the following: 

‘‘(A) Capital expenditures incurred for purposes of—

‘‘(i) reducing energy consumption in publicly-owned 

buildings by at least 20 percent, 

‘‘(ii) implementing green community programs, or 

‘‘(iii) rural development involving the production of 

electricity from renewable energy resources. 

‘‘(B) Expenditures with respect to research facilities, and 

research grants, to support research in—

‘‘(i) development of cellulosic ethanol or other nonfossil fuels, 

‘‘(ii) technologies for the capture and sequestration 

of carbon dioxide produced through the use of fossil 

fuels, 

‘‘(iii) increasing the efficiency of existing technologies for producing nonfossil fuels, 


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‘‘(iv) automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or 

‘‘(v) technologies to reduce energy use in buildings. 

‘‘(C) Mass commuting facilities and related facilities that 

reduce the consumption of energy, including expenditures 

to reduce pollution from vehicles used for mass commuting. 

‘‘(D) Demonstration projects designed to promote the 

commercialization of—

‘‘(i) green building technology, 

‘‘(ii) conversion of agricultural waste for use in the 

production of fuel or otherwise, 

‘‘(iii) advanced battery manufacturing technologies, 

‘‘(iv) technologies to reduce peak use of electricity, or 

‘‘(v) technologies for the capture and sequestration of 

carbon dioxide emitted from combusting fossil fuels in 

order to produce electricity. 

‘‘(E) Public education campaigns to promote energy efficiency. 

‘‘(2) SPECIAL RULES FOR PRIVATE ACTIVITY BONDS.—For purposes of this section, in the case of any private activity bond, 

the term ‘qualified conservation purposes’ shall not include any 

expenditure which is not a capital expenditure. 

‘‘(f) POPULATION.—

‘‘(1) IN GENERAL.—The population of any State or local government shall be determined for purposes of this section as 

provided in section 146(j) for the calendar year which includes 

the date of the enactment of this section. 

‘‘(2) SPECIAL RULE FOR COUNTIES.—In determining the population of any county for purposes of this section, any population 

of such county which is taken into account in determining the 

population of any municipality which is a large local government shall not be taken into account in determining the population of such county. 

‘‘(g) APPLICATION TO INDIAN TRIBAL GOVERNMENTS.—An Indian 

tribal government shall be treated for purposes of this section in 

the same manner as a large local government, except that—

‘‘(1) an Indian tribal government shall be treated for purposes of subsection (d) as located within a State to the extent 

of so much of the population of such government as resides 

within such State, and 

‘‘(2) any bond issued by an Indian tribal government shall be 

treated as a qualified energy conservation bond only if issued 

as part of an issue the available project proceeds of which are 

used for purposes for which such Indian tribal government 

could issue bonds to which section 103(a) applies.’’. 

(b) CONFORMING AMENDMENTS.—

(1) Paragraph (1) of section 54A(d), as added by this title, is 

amended to read as follows: 

‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 

credit bond’ means—

‘‘(A) a new clean renewable energy bond, or 

‘‘(B) a qualified energy conservation bond, 


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which is part of an issue that meets requirements of paragraphs (2), (3), (4), and (5).’’. (2) Subparagraph (C) of section 54A(d)(2), as added by this 

title, is amended to read as follows: ‘‘(C) QUALIFIED PURPOSE.—For purposes of this paragraph, the term ‘qualified purpose’ means— ‘‘(i) in the case of a new clean renewable energy 

bond, a purpose specified in section 54B(a)(1), and ‘‘(ii) in the case of a qualified energy conservation 

bond, a purpose specified in section 54C(a)(1).’’. (3) The table of sections for subpart I of part IV of subchapter A of chapter 1, as amended by this title, is amended 

by adding at the end the following new item: 

‘‘Sec. 54C. Qualified energy conservation bonds.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment of 

this Act. 

SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS. 

(a) IN GENERAL.—Subpart I of part IV of subchapter A of chapter 

1, as added by this title, is amended by adding at the end the following new section: 

‘‘SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS. 

‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.—For purposes of 

this subchapter, the term ‘qualified forestry conservation bond’ means any bond issued as part of an issue if— ‘‘(1) 100 percent of the available proceeds of such issue are 

to be used for one or more qualified forestry conservation 

projects, ‘‘(2) the bond is issued by a qualified issuer, and 

‘‘(3) the issuer designates such bond for purposes of this section. ‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The maximum aggregate face amount of bonds which may be designated 

under subsection (a) by any issuer shall not exceed the limitation 

amount allocated to such issuer under subsection (d). ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED.— There is a national qualified forestry conservation bond limitation 

of $500,000,000. ‘‘(d) ALLOCATIONS.—

‘‘(1) IN GENERAL.—The Secretary shall make allocations of 

the amount of the national qualified forestry conservation bond 

limitation described in subsection (c) among qualified forestry 

conservation projects in such manner as the Secretary determines appropriate so as to ensure that all of such limitation 

is allocated before the date which is 24 months after the date 

of the enactment of this section. 

‘‘(2) SOLICITATION OF APPLICATIONS.—The Secretary shall solicit applications for allocations of the national qualified forestry conservation bond limitation described in subsection (c) 

not later than 90 days after the date of the enactment of this 

section. 

‘‘(e) QUALIFIED FORESTRY CONSERVATION PROJECT.—For purposes 

of this section, the term ‘qualified forestry conservation project’

means the acquisition by a State or 501(c)(3) organization (as deVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00364 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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fined in section 150(a)(4)) from an unrelated person of forest and 

forest land that meets the following qualifications: ‘‘(1) Some portion of the land acquired must be adjacent to 

United States Forest Service Land. ‘‘(2) At least half of the land acquired must be transferred to 

the United States Forest Service at no net cost to the United 

States and not more than half of the land acquired may either 

remain with or be donated to a State. ‘‘(3) All of the land must be subject to a native fish habitat 

conservation plan approved by the United States Fish and 

Wildlife Service. ‘‘(4) The amount of acreage acquired must be at least 40,000 

acres. ‘‘(f) QUALIFIED ISSUER.—For purposes of this section, the term ‘qualified issuer’ means a State or 501(c)(3) organization (as defined in section 150(a)(4)). ‘‘(g) SPECIAL ARBITRAGE RULE.—In the case of any qualified forestry conservation bond issued as part of an issue, section 

54A(d)(4)(C) shall be applied to such issue without regard to clause 

(i).’’. 

(b) CONFORMING AMENDMENTS.— (1) Paragraph (1) of section 54A(d), as added by this title, is 

amended to read as follows: ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 

credit bond’ means— ‘‘(A) a new clean renewable energy bond, 

‘‘(B) a qualified energy conservation bond, or 

‘‘(C) a qualified forestry conservation bond, 

which is part of an issue that meets requirements of paragraphs (2), (3), (4), and (5).’’. (2) Subparagraph (C) of section 54A(d)(2), as added by this 

title, is amended to read as follows: 

‘‘(C) QUALIFIED PURPOSE.—For purposes of this paragraph, the term ‘qualified purpose’ means—

‘‘(i) in the case of a new clean renewable energy 

bond, a purpose specified in section 54B(a)(1), 

‘‘(ii) in the case of a qualified energy conservation 

bond, a purpose specified in section 54C(a)(1), and 

‘‘(iii) in the case of a qualified forestry conservation 

bond, a purpose specified in section 54D(a)(1).’’. 

(3) The table of sections for subpart I of part IV of subchapter A of chapter 1, as amended by this title, is amended 

by adding at the end the following new item: 

‘‘Sec. 54C. Qualified forestry conservation bonds.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment of 

this Act. 

PART II—EFFICIENCY 

SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT EXISTING HOMES CREDIT. 

(a) EXTENSION OF CREDIT.—Section 25C(g) (relating to termination) is amended by striking ‘‘December 31, 2007’’ and inserting 

‘‘December 31, 2008’’. 


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(b) QUALIFIED BIOMASS FUEL PROPERTY.— (1) IN GENERAL.—Section 25C(d)(3) is amended— (A) by striking ‘‘and’’ at the end of subparagraph (D), 

(B) by striking the period at the end of subparagraph (E) 

and inserting ‘‘, and’’, and 

(C) by adding at the end the following new subparagraph: ‘‘(F) a stove which uses the burning of biomass fuel to 

heat a dwelling unit located in the United States and used 

as a residence by the taxpayer, or to heat water for use in 

such a dwelling unit, and which has a thermal efficiency 

rating of at least 75 percent.’’. (2) BIOMASS FUEL.—Section 25C(d) (relating to residential 

energy property expenditures) is amended by adding at the end 

the following new paragraph: ‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ means any 

plant-derived fuel available on a renewable or recurring basis, 

including agricultural crops and trees, wood and wood waste 

and residues (including wood pellets), plants (including aquatic 

plants), grasses, residues, and fibers.’’. (c) EFFECTIVE DATE.—The amendments made this section shall 

apply to expenditures made after December 31, 2007. 

SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 

COMMERCIAL BUILDINGS DEDUCTION. 

Subsection (h) of section 179D (relating to termination) is amended by striking ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

2013’’. 

SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 2007. 

(a) IN GENERAL.—Subsection (b) of section 45M (relating to applicable amount) is amended to read as follows: ‘‘(b) APPLICABLE AMOUNT.—For purposes of subsection (a)— ‘‘(1) DISHWASHERS.—The applicable amount is— ‘‘(A) $45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no 

more than 324 kilowatt hours per year and 5.8 gallons per 

cycle, and ‘‘(B) $75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses 

no more than 307 kilowatt hours per year and 5.0 gallons 

per cycle (5.5 gallons per cycle for dishwashers designed 

for greater than 12 place settings). ‘‘(2) CLOTHES WASHERS.—The applicable amount is—

‘‘(A) $75 in the case of a residential top-loading clothes 

washer manufactured in calendar year 2008 which meets 

or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor, 

‘‘(B) $125 in the case of a residential top-loading clothes 

washer manufactured in calendar year 2008 or 2009 which 

meets or exceeds a 1.8 modified energy factor and does not 

exceed a 7.5 water consumption factor, 

‘‘(C) $150 in the case of a residential or commercial 

clothes washer manufactured in calendar year 2008, 2009 

or 2010 which meets or exceeds 2.0 modified energy factor 

and does not exceed a 6.0 water consumption factor, and 


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‘‘(D) $250 in the case of a residential or commercial 

clothes washer manufactured in calendar year 2008, 2009, 

or 2010 which meets or exceeds 2.2 modified energy factor 

and does not exceed a 4.5 water consumption factor. 

‘‘(3) REFRIGERATORS.—The applicable amount is—

‘‘(A) $50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours 

per year than the 2001 energy conservation standards, 

‘‘(B) $75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at 

least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation 

standards, 

‘‘(C) $100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes 

at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation 

standards, and 

‘‘(D) $200 in the case of a refrigerator manufactured in 

calendar year 2008, 2009, or 2010 and which consumes at 

least 30 percent less energy than the 2001 energy conservation standards.’’. 

(b) ELIGIBLE PRODUCTION.—

(1) SIMILAR TREATMENT FOR ALL APPLIANCES.—Subsection (c) 

of section 45M (relating to eligible production) is amended—

(A) by striking paragraph (2), 

(B) by striking ‘‘(1) IN GENERAL’’ and all that follows 

through ‘‘the eligible’’ and inserting ‘‘The eligible’’, and 

(C) by moving the text of such subsection in line with 

the subsection heading and redesignating subparagraphs 

(A) and (B) as paragraphs (1) and (2), respectively. 

(2) MODIFICATION OF BASE PERIOD.—Paragraph (2) of section 

45M(c), as amended by paragraph (1) of this section, is amended by striking ‘‘3-calendar year’’ and inserting ‘‘2-calendar 

year’’. 

(c) TYPES OF ENERGY EFFICIENT APPLIANCES.—Subsection (d) of 

section 45M (defining types of energy efficient appliances) is 

amended to read as follows: 

‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.—For purposes of 

this section, the types of energy efficient appliances are—

‘‘(1) dishwashers described in subsection (b)(1), 

‘‘(2) clothes washers described in subsection (b)(2), and 

‘‘(3) refrigerators described in subsection (b)(3).’’

(d) AGGREGATE CREDIT AMOUNT ALLOWED.—

(1) INCREASE IN LIMIT.—Paragraph (1) of section 45M(e) (relating to aggregate credit amount allowed) is amended to read 

as follows: 

‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.—The aggregate 

amount of credit allowed under subsection (a) with respect to 

a taxpayer for any taxable year shall not exceed $75,000,000 

reduced by the amount of the credit allowed under subsection 

(a) to the taxpayer (or any predecessor) for all prior taxable 

years beginning after December 31, 2007.’’. 


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(2) EXCEPTION FOR CERTAIN REFRIGERATOR AND CLOTHES

WASHERS.—Paragraph (2) of section 45M(e) is amended to read 

as follows: ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIGERATORS AND

CLOTHES WASHERS.—Refrigerators described in subsection 

(b)(3)(D) and clothes washers described in subsection (b)(2)(D) 

shall not be taken into account under paragraph (1).’’. (e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— (1) IN GENERAL.—Paragraph (1) of section 45M(f) (defining 

qualified energy efficient appliance) is amended to read as follows: ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLIANCE.—The term ‘qualified energy efficient appliance’ means— ‘‘(A) any dishwasher described in subsection (b)(1), 

‘‘(B) any clothes washer described in subsection (b)(2), 

and ‘‘(C) any refrigerator described in subsection (b)(3).’’. (2) CLOTHES WASHER.—Section 45M(f)(3) (defining clothes 

washer) is amended by inserting ‘‘commercial’’ before ‘‘residential’’ the second place it appears. 

(3) TOP-LOADING CLOTHES WASHER.—Subsection (f) of section 

45M (relating to definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), 

respectively, and by inserting after paragraph (3) the following 

new paragraph: 

‘‘(4) TOP-LOADING CLOTHES WASHER.—The term ‘top-loading 

clothes washer’ means a clothes washer which has the clothes 

container compartment access located on the top of the machine and which operates on a vertical axis.’’. 

(4) REPLACEMENT OF ENERGY FACTOR.—Section 45M(f)(7), as 

redesignated by paragraph (3), is amended to read as follows: 

‘‘(7) MODIFIED ENERGY FACTOR.—The term ‘modified energy 

factor’ means the modified energy factor established by the Department of Energy for compliance with the Federal energy 

conservation standard.’’. (5) GALLONS PER CYCLE; WATER CONSUMPTION FACTOR.—Section 45M(f) (relating to definitions) is amended by adding at 

the end the following: ‘‘(9) GALLONS PER CYCLE.—The term ‘gallons per cycle’ means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a 

dishwasher. ‘‘(10) WATER CONSUMPTION FACTOR.—The term ‘water consumption factor’ means, with respect to a clothes washer, the 

quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.’’. (f) EFFECTIVE DATE.—The amendments made by this section 

shall apply to appliances produced after December 31, 2007. 

SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT DEVICES. 

(a) IN GENERAL.—Section 168(e)(3)(C) (relating to 7-year property), as amended by this Act, is amended by striking ‘‘and’’ at the 

end of clause (v), by redesignating clause (vi) as clause (vii), and 

by inserting after clause (v) the following new clause: 


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‘‘(vi) any qualified energy management device, and’’. 

(b) DEFINITION OF QUALIFIED ENERGY MANAGEMENT DEVICE.—

Section 168(i) (relating to definitions and special rules) is amended 

by inserting at the end the following new paragraph: 

‘‘(18) QUALIFIED ENERGY MANAGEMENT DEVICE.—

‘‘(A) IN GENERAL.—The term ‘qualified energy management device’ means any energy management device which 

is installed on real property of a customer of the taxpayer 

and is placed in service by a taxpayer who—

‘‘(i) is a supplier of electric energy or a provider of 

electric energy services, and 

‘‘(ii) provides all commercial and residential customers of such supplier or provider with net metering 

upon the request of such customer. 

‘‘(B) ENERGY MANAGEMENT DEVICE.—For purposes of 

subparagraph (A), the term ‘energy management device’

means any time-based meter and related communication 

equipment which is capable of being used by the taxpayer 

as part of a system that—

‘‘(i) measures and records electricity usage data on 

a time-differentiated basis in at least 24 separate time 

segments per day, 

‘‘(ii) provides for the exchange of information between supplier or provider and the customer’s energy 

management device in support of time-based rates or 

other forms of demand response, and 

‘‘(iii) provides data to such supplier or provider so 

that the supplier or provider can provide energy usage 

information to customers electronically. 

‘‘(C) NET METERING.—For purposes of subparagraph (A), 

the term ‘net metering’ means allowing customers a credit 

for providing electricity to the supplier or provider.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property placed in service after December 31, 2007. 

Subtitle D—Other Provisions 

PART I—FORESTRY PROVISIONS 

SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN. 

(a) IN GENERAL.—Part I of subchapter P of chapter 1 is amended 

by adding at the end the following new section: 

‘‘SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN. 

‘‘(a) IN GENERAL.—In the case of a taxpayer which elects the application of this section for a taxable year, there shall be allowed 

a deduction against gross income in an amount equal to 60 percent 

of the lesser of—

‘‘(1) the taxpayer’s qualified timber gain for such year, or 

‘‘(2) the taxpayer’s net capital gain for such year. 

‘‘(b) QUALIFIED TIMBER GAIN.—For purposes of this section, the 

term ‘qualified timber gain’ means, with respect to any taxpayer for 

any taxable year, the excess (if any) of—

‘‘(1) the sum of the taxpayer’s gains described in subsections 

(a) and (b) of section 631 for such year, over 


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‘‘(2) the sum of the taxpayer’s losses described in such subsections for such year. 

‘‘(c) SPECIAL RULES FOR PASS-THRU ENTITIES.—

‘‘(1) In the case of any qualified timber gain of a pass-thru 

entity (as defined in section 1(h)(10)) other than a real estate 

investment trust, the election under this section shall be made 

separately by each taxpayer subject to tax on such gain. 

‘‘(2) In the case of any qualified timber gain of a real estate 

investment trust, the election under this section shall be made 

by the real estate investment trust. 

‘‘(d) ELECTION.—An election under this section may be made only 

with respect to the first taxable year beginning after the date of 

the enactment of this section.’’. 

(b) COORDINATION WITH MAXIMUM CAPITAL GAINS RATES.—

(1) TAXPAYERS OTHER THAN CORPORATIONS.—Paragraph (2) of 

section 1(h) is amended to read as follows: 

‘‘(2) REDUCTION OF NET CAPITAL GAIN.—For purposes of this 

subsection, the net capital gain for any taxable year shall be 

reduced (but not below zero) by the sum of—

‘‘(A) the amount which the taxpayer takes into account 

as investment income under section 163(d)(4)(B)(iii), and 

‘‘(B) in the case of a taxable year with respect to which 

an election is in effect under section 1203, the taxpayer’s 

qualified timber gain (as defined in section 1203(b)).’’. 

(2) CORPORATIONS.—Section 1201 is amended by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following new subsection: 

‘‘(b) QUALIFIED TIMBER GAIN NOT TAKEN INTO ACCOUNT.—For 

purposes of this section, in the case of a corporation with respect 

to which an election is in effect under section 1203, the net capital 

gain for any taxable year shall be reduced (but not below zero) by 

the corporation’s qualified timber gain (as defined in section 

1203(b)).’’. 

(c) DEDUCTION ALLOWED WHETHER OR NOT INDIVIDUAL ITEMIZES

OTHER DEDUCTIONS.—Subsection (a) of section 62 is amended by 

inserting before the last sentence the following new paragraph: 

‘‘(22) QUALIFIED TIMBER GAINS.—The deduction allowed by 

section 1203.’’. 

(d) DEDUCTION ALLOWED IN COMPUTING ADJUSTED CURRENT

EARNINGS.—Subparagraph (C) of section 56(g)(4) is amended by 

adding at the end the following new clause: 

‘‘(vii) DEDUCTION FOR QUALIFIED TIMBER GAIN.—

Clause (i) shall not apply to any deduction allowed 

under section 1203.’’. 

(e) DEDUCTION ALLOWED IN COMPUTING TAXABLE INCOME OF

ELECTING SMALL BUSINESS TRUSTS.—Subparagraph (C) of section 

641(c)(2) is amended by inserting after clause (iv) the following new 

clause: 

‘‘(v) The deduction allowed under section 1203.’’. 

(f) TREATMENT OF QUALIFIED TIMBER GAIN OF REAL ESTATE INVESTMENT TRUSTS.—Paragraph (3) of section 857(b) is amended by 

inserting after subparagraph (F) the following new subparagraph: 

‘‘(G) TREATMENT OF QUALIFIED TIMBER GAIN.—For purposes of this part, in the case of a real estate investment 


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trust with respect to which an election is in effect under 

section 1203—

‘‘(i) REDUCTION OF NET CAPITAL GAIN.—The net capital gain of the real estate investment trust for any 

taxable year shall be reduced (but not below zero) by 

the real estate investment trust’s qualified timber gain 

(as defined in section 1203(b)). 

‘‘(ii) ADJUSTMENT TO SHAREHOLDER’S BASIS ATTRIBUTABLE TO DEDUCTION FOR QUALIFIED TIMBER GAINS.—

‘‘(I) IN GENERAL.—The adjusted basis of shares 

in the hands of the shareholder shall be increased 

by the amount of the deduction allowable under 

section 1203(a) as provided in subclauses (II) and 

(III). 

‘‘(II) ALLOCATION OF BASIS INCREASE FOR DISTRIBUTIONS MADE DURING TAXABLE YEAR.—For any 

taxable year of a real estate investment trust for 

which an election is in effect under section 1203, 

in the case of a distribution made with respect to 

shares during such taxable year of amounts attributable to the deduction allowable under section 1203(a), the adjusted basis of such shares 

shall be increased by the amount of such distributions. 

‘‘(III) ALLOCATION OF EXCESS.—If the deduction 

allowable under section 1203(a) for a taxable year 

exceeds the amount of distributions described in 

subclause (II), the excess shall be allocated to 

every shareholder of the real estate investment 

trust at the close of the trust’s taxable year in the 

same manner as if a distribution of such excess 

were made with respect to such shares. 

‘‘(IV) DESIGNATIONS.—To the extent provided in 

regulations, a real estate investment trust shall 

designate the amounts described in subclauses (II) 

and (III) in a manner similar to the designations 

provided with respect to capital gains described in 

subparagraphs (C) and (D). 

‘‘(V) DEFINITIONS.—As used in this subparagraph, the terms ‘share’ and ‘shareholder’ shall include beneficial interests and holders of beneficial 

interests, respectively. 

‘‘(iii) EARNINGS AND PROFITS DEDUCTION FOR QUALIFIED TIMBER GAINS.—The deduction allowable under 

section 1203(a) for a taxable year shall be allowed as 

a deduction in computing the earnings and profits of 

the real estate investment trust for such taxable year. 

The earnings and profits of any such shareholder 

which is a corporation shall be appropriately adjusted 

in accordance with regulations prescribed by the Secretary.’’. 

(g) LOSS ATTRIBUTABLE TO BASIS ADJUSTMENT FOR DEDUCTION

FOR QUALIFIED TIMBER GAIN OF REAL ESTATE INVESTMENT

TRUSTS.—


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(1) Section 857(b)(8) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, 

and by inserting after subparagraph (A) the following new subparagraph: 

‘‘(B) LOSS ATTRIBUTABLE TO BASIS ADJUSTMENT FOR DEDUCTION FOR QUALIFIED TIMBER GAIN.—If—

‘‘(i) a shareholder of a real estate investment trust 

receives a basis adjustment provided under subsection 

(b)(3)(G)(ii), and 

‘‘(ii) the taxpayer has held such share or interest for 

6 months or less, 

then any loss on the sale or exchange of such share or interest shall, to the extent of the amount described in 

clause (i), be disallowed.’’. 

(2) Subparagraph (D) of section 857(b)(8), as redesignated by 

paragraph (1), is amended by striking ‘‘subparagraph (A)’’ and 

inserting ‘‘subparagraphs (A) and (B)’’. 

(h) CONFORMING AMENDMENTS.—

(1) Subparagraph (B) of section 172(d)(2) is amended to read 

as follows: 

‘‘(B) the exclusion under section 1202, and the deduction 

under section 1203, shall not be allowed.’’. 

(2) Paragraph (4) of section 642(c) is amended by striking the 

first sentence and inserting ‘‘To the extent that the amount 

otherwise allowable as a deduction under this subsection consists of gain described in section 1202(a) or qualified timber 

gain (as defined in section 1203(b)), proper adjustment shall be 

made for any exclusion allowable to the estate or trust under 

section 1202 and for any deduction allowable to the estate or 

trust under section 1203.’’

(3) Paragraph (3) of section 643(a) is amended by striking 

the last sentence and inserting ‘‘The exclusion under section 

1202 and the deduction under section 1203 shall not be taken 

into account.’’. 

(4) Subparagraph (C) of section 643(a)(6) is amended to read 

as follows: 

‘‘(C) Paragraph (3) shall not apply to a foreign trust. In 

the case of such a trust—

‘‘(i) there shall be included gains from the sale or exchange of capital assets, reduced by losses from such 

sales or exchanges to the extent such losses do not exceed gains from such sales or exchanges, and 

‘‘(ii) the deduction under section 1203 shall not be 

taken into account.’’. 

(5) Paragraph (4) of section 691(c) is amended by inserting 

‘‘1203,’’ after ‘‘1202,’’. 

(6) Paragraph (2) of section 871(a) is amended by inserting 

‘‘or 1203,’’ after ‘‘1202,’’. 

(7) The table of sections for part I of subchapter P of chapter 

1 is amended by adding at the end the following new item: 

‘‘Sec. 1203. Deduction for qualified timber gain.’’. 

(i) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 


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SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION 

OF REAL ESTATE INVESTMENT TRUSTS. 

(a) IN GENERAL.—

(1) ORDINARY INCOME.—Subparagraph (B) of section 

4981(e)(1) is amended to read as follows: 

‘‘(B) by not taking into account—

‘‘(i) any gain or loss from the sale or exchange of 

capital assets (determined without regard to any reduction that would be applied for purposes of section 

857(b)(3)(G)(i)), and 

‘‘(ii) any deduction allowable under section 1203, 

and’’. 

(2) CAPITAL GAIN NET INCOME.—Section 4981(e)(2) is amended by adding at the end the following new subparagraph: 

‘‘(D) QUALIFIED TIMBER GAIN.—The amount determined 

under subparagraph (A) shall be determined without regard to any reduction that would be applied for purposes 

of section 857(b)(3)(G)(i) but shall be reduced for any deduction allowable under section 1203 for such calendar 

year.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 1553. TIMBER REIT MODERNIZATION. 

(a) IN GENERAL.—Section 856(c)(5) is amended by adding after 

subparagraph (G) the following new subparagraph: 

‘‘(H) TREATMENT OF TIMBER GAINS.—

‘‘(i) IN GENERAL.—Gain from the sale of real property described in paragraph (2)(D) and (3)(C) shall include gain which is—

‘‘(I) recognized by an election under section 

631(a) from timber owned by the real estate investment trust, the cutting of which is provided by 

a taxable REIT subsidiary of the real estate investment trust; 

‘‘(II) recognized under section 631(b); or 

‘‘(III) income which would constitute gain under 

subclause (I) or (II) but for the failure to meet the 

1-year holding period requirement. 

‘‘(ii) SPECIAL RULES.—

‘‘(I) For purposes of this subtitle, cut timber, the 

gain of which is recognized by a real estate investment trust pursuant to an election under section 

631(a) described in clause (i)(I) or so much of 

clause (i)(III) as relates to clause (i)(I), shall be 

deemed to be sold to the taxable REIT subsidiary 

of the real estate investment trust on the first day 

of the taxable year. 

‘‘(II) For purposes of this subtitle, income described in this subparagraph shall not be treated 

as gain from the sale of property described in section 1221(a)(1). 

‘‘(iii) TERMINATION.—This subparagraph shall not 

apply to dispositions after the termination date.’’. 


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(b) TERMINATION DATE.—Subsection (c) of section 856 is amended 

by adding at the end the following new paragraph: 

‘‘(8) TERMINATION DATE.—For purposes of this subsection, the 

term ‘termination date’ means the last day of the first taxable 

year beginning after the date of the enactment of this paragraph.’’. 

(c) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall apply to dispositions in taxable years beginning after the date 

of the enactment of this Act. 

SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS. 

(a) IN GENERAL.—Section 856(c)(2) is amended by striking ‘‘and’’

at the end of subparagraph (G), by inserting ‘‘and’’ at the end of 

subparagraph (H), and by adding after subparagraph (H) the following new subparagraph: 

‘‘(I) mineral royalty income earned in the first taxable 

year beginning after the date of the enactment of this subparagraph from real property owned by a timber real estate investment trust held, or once held, in connection with 

the trade or business of producing timber by such real estate investment trust;’’. 

(b) TIMBER REAL ESTATE INVESTMENT TRUST.—Section 856(c)(5), 

as amended by this Act, is amended by adding after subparagraph 

(H) the following new subparagraph: 

‘‘(I) TIMBER REAL ESTATE INVESTMENT TRUST.—The term 

‘timber real estate investment trust’ means a real estate 

investment trust in which more than 50 percent in value 

of its total assets consists of real property held in connection with the trade or business of producing timber.’’. 

(c) EFFECTIVE DATE.—The amendments by this section shall 

apply to taxable years beginning after the date of the enactment 

of this Act. 

SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST 

FOR TIMBER REITS. 

(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by inserting 

‘‘(in the case of a quarter which closes on or before the termination 

date, 25 percent in the case of a timber real estate investment 

trust)’’ after ‘‘not more than 20 percent of the value of its total assets is represented by securities of one or more taxable REIT subsidiaries’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall 

apply to taxable years beginning after the date of the enactment 

of this Act. 

SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY. 

(a) IN GENERAL.—Section 857(b)(6) (relating to income from prohibited transactions) is amended by adding at the end the following 

new subparagraph: 

‘‘(G) SPECIAL RULES FOR SALES TO QUALIFIED ORGANIZATIONS.—

‘‘(i) IN GENERAL.—In the case of sale of a real estate 

asset (as defined in section 856(c)(5)(B)) to a qualified 

organization (as defined in section 170(h)(3)) exclusively for conservation purposes (within the meaning 


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of section 170(h)(1)(C)), subparagraph (D) shall be applied—

‘‘(I) by substituting ‘2 years’ for ‘4 years’ in 

clause (i), and 

‘‘(II) by substituting ‘2-year period’ for ‘4-year 

period’ in clauses (ii) and (iii). 

‘‘(ii) TERMINATION.—This subparagraph shall not 

apply to sales after the termination date.’’. 

(b) PROHIBITED TRANSACTIONS.—Section 857(b)(6)(D)(v) is 

amended by inserting ‘‘or, in the case of a sale on or before the termination date, a taxable REIT subsidiary’’ after ‘‘independent contractor (as defined in section 856(d)(3)) from whom the trust itself 

does not derive or receive any income’’. 

(c) SALES THAT ARE NOT PROHIBITED TRANSACTIONS.—Section 

857(b)(6), as amended by subsection (a), is amended by adding at 

the end the following new subparagraph: 

‘‘(H) SALES OF PROPERTY THAT ARE NOT A PROHIBITED

TRANSACTION.—In the case of a sale on or before the termination date, the sale of property which is not a prohibited 

transaction through application of subparagraph (D) shall 

be considered property held for investment or for use in a 

trade or business and not property described in section 

1221(a)(1) for all purposes of this subtitle.’’. 

(d) TERMINATION DATE.—Section 857(b)(6), as amended by subsections (a) and (c), is amended by adding at the end the following 

new subparagraph: 

‘‘(I) TERMINATION DATE.—For purposes of this paragraph, 

the term ‘termination date’ means the last day of the first 

taxable year beginning after the date of the enactment of 

this subparagraph.’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to dispositions in taxable years beginning after the date 

of the enactment of this Act. 

PART II—EXXON VALDEZ 

SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE EXXON VALDEZ LITIGATION. 

(a) INCOME AVERAGING OF AMOUNTS RECEIVED FROM THE EXXON

VALDEZ LITIGATION.—For purposes of section 1301 of the Internal 

Revenue Code of 1986—

(1) any qualified taxpayer who receives any qualified settlement income in any taxable year shall be treated as engaged 

in a fishing business (determined without regard to the commercial nature of the business), and 

(2) such qualified settlement income shall be treated as income attributable to such a fishing business for such taxable 

year. 

(b) CONTRIBUTIONS OF AMOUNTS RECEIVED TO RETIREMENT ACCOUNTS.—

(1) IN GENERAL.—Any qualified taxpayer who receives qualified settlement income during the taxable year may, at any 

time before the end of the taxable year in which such income 

was received, make one or more contributions to an eligible reVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00375 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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tirement plan of which such qualified taxpayer is a beneficiary 

in an aggregate amount not to exceed the lesser of— (A) $100,000 (reduced by the amount of qualified settlement income contributed to an eligible retirement plan in 

prior taxable years pursuant to this subsection), or 

(B) the amount of qualified settlement income received 

by the individual during the taxable year. 

(2) TIME WHEN CONTRIBUTIONS DEEMED MADE.—For purposes 

of paragraph (1), a qualified taxpayer shall be deemed to have 

made a contribution to an eligible retirement plan on the last 

day of the taxable year in which such income is received if the 

contribution is made on account of such taxable year and is 

made not later than the time prescribed by law for filing the 

return for such taxable year (not including extensions thereof). 

(3) TREATMENT OF CONTRIBUTIONS TO ELIGIBLE RETIREMENT

PLANS.—For purposes of the Internal Revenue Code of 1986, if 

a contribution is made pursuant to paragraph (1) with respect 

to qualified settlement income, then—

(A) except as provided in paragraph (4)—

(i) to the extent of such contribution, the qualified 

settlement income shall not be included in taxable income, and 

(ii) for purposes of section 72 of such Code, such contribution shall not be considered to be investment in 

the contract, 

(B) the qualified taxpayer shall, to the extent of the 

amount of the contribution, be treated—

(i) as having received the qualified settlement income—

(I) in the case of a contribution to an individual 

retirement plan (as defined under section 

7701(a)(37) of such Code), in a distribution described in section 408(d)(3) of such Code, and 

(II) in the case of any other eligible retirement 

plan, in an eligible rollover distribution (as defined under section 402(f)(2) of such Code), and 

(ii) as having transferred the amount to the eligible 

retirement plan in a direct trustee to trustee transfer 

within 60 days of the distribution, 

(C) section 408(d)(3)(B) of the Internal Revenue Code of 

1986 shall not apply with respect to amounts treated as a 

rollover under this paragraph, and 

(D) section 408A(c)(3)(B) of the Internal Revenue Code of 

1986 shall not apply with respect to amounts contributed 

to a Roth IRA (as defined under section 408A(b) of such 

Code) or a designated Roth contribution to an applicable 

retirement plan (within the meaning of section 402A of 

such Code) under this paragraph. 

(4) SPECIAL RULE FOR ROTH IRAS AND ROTH 401(k)S.—For 

purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to paragraph (1) with respect to qualified settlement income to a Roth IRA (as defined under section 

408A(b) of such Code) or as a designated Roth contribution to 

an applicable retirement plan (within the meaning of section 

402A of such Code), then—


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(A) the qualified settlement income shall be includible in 

taxable income, and 

(B) for purposes of section 72 of such Code, such contribution shall be considered to be investment in the contract. 

(5) ELIGIBLE RETIREMENT PLAN.—For purpose of this subsection, the term ‘‘eligible retirement plan’’ has the meaning 

given such term under section 402(c)(8)(B) of the Internal Revenue Code of 1986. 

(c) TREATMENT OF QUALIFIED SETTLEMENT INCOME UNDER EM- PLOYMENT TAXES.—

(1) SECA.—For purposes of chapter 2 of the Internal Revenue Code of 1986 and section 211 of the Social Security Act, 

no portion of qualified settlement income received by a qualified taxpayer shall be treated as self-employment income. 

(2) FICA.—For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security Act, 

no portion of qualified settlement income received by a qualified taxpayer shall be treated as wages. 

(d) QUALIFIED TAXPAYER.—For purposes of this section, the term 

‘‘qualified taxpayer’’ means—

(1) any individual who is a plaintiff in the civil action In re 

Exxon Valdez, No. 89–095–CV (HRH) (Consolidated) (D. Alaska); or 

(2) any individual who is a beneficiary of the estate of such 

a plaintiff who—

(A) acquired the right to receive qualified settlement income from that plaintiff; and 

(B) was the spouse or an immediate relative of that 

plaintiff. 

(e) QUALIFIED SETTLEMENT INCOME.—For purposes of this section, the term ‘‘qualified settlement income’’ means any interest 

and punitive damage awards which are—

(1) otherwise includible in taxable income, and 

(2) received (whether as lump sums or periodic payments) in 

connection with the civil action In re Exxon Valdez, No. 89–

095–CV (HRH) (Consolidated) (D. Alaska) (whether pre- or 

post-judgment and whether related to a settlement or judgment). 

Subtitle E—Revenue Provisions 

SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE 

TO DOMESTIC PRODUCTION OF OIL, GAS, OR A PRIMARY 

PRODUCTS THEREOF. 

(a) DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION OF OIL, 

GAS, OR PRIMARY PRODUCTS THEREOF.—

(1) IN GENERAL.—Subparagraph (B) of section 199(c)(4) (relating to exceptions) is amended by striking ‘‘or’’ at the end of 

clause (ii), by striking the period at the end of clause (iii) and 

inserting ‘‘, or’’, and by inserting after clause (iii) the following 

new clause: 

‘‘(iv) in the case of any major integrated oil company 

(as defined in section 167(h)(5)(B)), the production, refining, processing, transportation, or distribution of oil, 


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gas, or any primary product thereof during any taxable year described in section 167(h)(5)(B).’’. 

(2) PRIMARY PRODUCT.—Section 199(c)(4)(B) is amended by 

adding at the end the following flush sentence: 

‘‘For purposes of clause (iv), the term ‘primary product’ has 

the same meaning as when used in section 927(a)(2)(C), as 

in effect before its repeal.’’. 

(b) LIMITATION ON OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME FOR TAXPAYERS OTHER THAN MAJOR INTEGRATED OIL

COMPANIES.—

(1) IN GENERAL.—Section 199(d) is amended by redesignating 

paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: 

‘‘(9) SPECIAL RULE FOR TAXPAYERS WITH OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME.—

‘‘(A) IN GENERAL.—If a taxpayer (other than a major integrated oil company (as defined in section 167(h)(5)(B))) 

has oil related qualified production activities income for 

any taxable year beginning after 2009, the amount of the 

deduction under subsection (a) shall be reduced by 3 percent of the least of—

‘‘(i) the oil related qualified production activities income of the taxpayer for the taxable year, 

‘‘(ii) the qualified production activities income of the 

taxpayer for the taxable year, or 

‘‘(iii) taxable income (determined without regard to 

this section). 

‘‘(B) OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME.—The term ‘oil related qualified production activities 

income’ means for any taxable year the qualified production activities income which is attributable to the production, refining, processing, transportation, or distribution of 

oil, gas, or any primary product thereof during such taxable year.’’. 

(2) CONFORMING AMENDMENT.—Section 199(d)(2) (relating to 

application to individuals) is amended by striking ‘‘subsection 

(a)(1)(B)’’ and inserting ‘‘subsections (a)(1)(B) and (d)(9)(A)(iii)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2007. 

SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND GAS EXTRACTION INCOME AND FOREIGN 

OIL RELATED INCOME FOR PURPOSES OF THE FOREIGN 

TAX CREDIT. 

(a) IN GENERAL.—Subsections (a) and (b) of section 907 (relating 

to special rules in case of foreign oil and gas income) are amended 

to read as follows: 

‘‘(a) REDUCTION IN AMOUNT ALLOWED AS FOREIGN TAX UNDER

SECTION 901.—In applying section 901, the amount of any foreign 

oil and gas taxes paid or accrued (or deemed to have been paid) 

during the taxable year which would (but for this subsection) be 

taken into account for purposes of section 901 shall be reduced by 

the amount (if any) by which the amount of such taxes exceeds the 

product of—

‘‘(1) the amount of the combined foreign oil and gas income 

for the taxable year, 


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‘‘(2) multiplied by—

‘‘(A) in the case of a corporation, the percentage which 

is equal to the highest rate of tax specified under section 

11(b), or 

‘‘(B) in the case of an individual, a fraction the numerator of which is the tax against which the credit under section 901(a) is taken and the denominator of which is the 

taxpayer’s entire taxable income. 

‘‘(b) COMBINED FOREIGN OIL AND GAS INCOME; FOREIGN OIL AND

GAS TAXES.—For purposes of this section—

‘‘(1) COMBINED FOREIGN OIL AND GAS INCOME.—The term 

‘combined foreign oil and gas income’ means, with respect to 

any taxable year, the sum of—

‘‘(A) foreign oil and gas extraction income, and 

‘‘(B) foreign oil related income. 

‘‘(2) FOREIGN OIL AND GAS TAXES.—The term ‘foreign oil and 

gas taxes’ means, with respect to any taxable year, the sum 

of—

‘‘(A) oil and gas extraction taxes, and 

‘‘(B) any income, war profits, and excess profits taxes 

paid or accrued (or deemed to have been paid or accrued 

under section 902 or 960) during the taxable year with respect to foreign oil related income (determined without regard to subsection (c)(4)) or loss which would be taken into 

account for purposes of section 901 without regard to this 

section.’’. 

(b) RECAPTURE OF FOREIGN OIL AND GAS LOSSES.—Paragraph (4) 

of section 907(c) (relating to recapture of foreign oil and gas extraction losses by recharacterizing later extraction income) is amended 

to read as follows: 

‘‘(4) RECAPTURE OF FOREIGN OIL AND GAS LOSSES BY RECHARACTERIZING LATER COMBINED FOREIGN OIL AND GAS INCOME.—

‘‘(A) IN GENERAL.—The combined foreign oil and gas income of a taxpayer for a taxable year (determined without 

regard to this paragraph) shall be reduced—

‘‘(i) first by the amount determined under subparagraph (B), and 

‘‘(ii) then by the amount determined under subparagraph (C). 

The aggregate amount of such reductions shall be treated 

as income (from sources without the United States) which 

is not combined foreign oil and gas income. 

‘‘(B) REDUCTION FOR PRE-2008 FOREIGN OIL EXTRACTION

LOSSES.—The reduction under this paragraph shall be 

equal to the lesser of—

‘‘(i) the foreign oil and gas extraction income of the 

taxpayer for the taxable year (determined without regard to this paragraph), or 

‘‘(ii) the excess of—

‘‘(I) the aggregate amount of foreign oil extraction losses for preceding taxable years beginning 

after December 31, 1982, and before January 1, 

2008, over 


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‘‘(II) so much of such aggregate amount as was 

recharacterized under this paragraph (as in effect 

before and after the date of the enactment of the 

Clean Renewable Energy and Conservation Tax 

Act of 2007) for preceding taxable years beginning 

after December 31, 1982. ‘‘(C) REDUCTION FOR POST-2007 FOREIGN OIL AND GAS

LOSSES.—The reduction under this paragraph shall be 

equal to the lesser of— ‘‘(i) the combined foreign oil and gas income of the 

taxpayer for the taxable year (determined without regard to this paragraph), reduced by an amount equal 

to the reduction under subparagraph (A) for the taxable year, or ‘‘(ii) the excess of— ‘‘(I) the aggregate amount of foreign oil and gas 

losses for preceding taxable years beginning after 

December 31, 2007, over ‘‘(II) so much of such aggregate amount as was 

recharacterized under this paragraph for preceding taxable years beginning after December 31, 

2007. ‘‘(D) FOREIGN OIL AND GAS LOSS DEFINED.— ‘‘(i) IN GENERAL.—For purposes of this paragraph, 

the term ‘foreign oil and gas loss’ means the amount 

by which— ‘‘(I) the gross income for the taxable year from 

sources without the United States and its possessions (whether or not the taxpayer chooses the 

benefits of this subpart for such taxable year) 

taken into account in determining the combined 

foreign oil and gas income for such year, is exceeded by ‘‘(II) the sum of the deductions properly apportioned or allocated thereto. 

‘‘(ii) NET OPERATING LOSS DEDUCTION NOT TAKEN

INTO ACCOUNT.—For purposes of clause (i), the net operating loss deduction allowable for the taxable year 

under section 172(a) shall not be taken into account. ‘‘(iii) EXPROPRIATION AND CASUALTY LOSSES NOT

TAKEN INTO ACCOUNT.—For purposes of clause (i), 

there shall not be taken into account—

‘‘(I) any foreign expropriation loss (as defined in 

section 172(h) (as in effect on the day before the 

date of the enactment of the Revenue Reconciliation Act of 1990)) for the taxable year, or 

‘‘(II) any loss for the taxable year which arises 

from fire, storm, shipwreck, or other casualty, or 

from theft, 

to the extent such loss is not compensated for by insurance or otherwise. ‘‘(iv) FOREIGN OIL EXTRACTION LOSS.—For purposes 

of subparagraph (B)(ii)(I), foreign oil extraction losses 

shall be determined under this paragraph as in effect 

on the day before the date of the enactment of the 


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Clean Renewable Energy and Conservation Tax Act of 

2007.’’. (c) CARRYBACK AND CARRYOVER OF DISALLOWED CREDITS.—Section 907(f) (relating to carryback and carryover of disallowed credits) is amended— (1) by striking ‘‘oil and gas extraction taxes’’ each place it appears and inserting ‘‘foreign oil and gas taxes’’, and 

(2) by adding at the end the following new paragraph: 

‘‘(4) TRANSITION RULES FOR PRE-2008 AND 2008 DISALLOWED

CREDITS.—‘‘(A) PRE-2008 CREDITS.—In the case of any unused credit year beginning before January 1, 2008, this subsection 

shall be applied to any unused oil and gas extraction taxes 

carried from such unused credit year to a year beginning 

after December 31, 2007— ‘‘(i) by substituting ‘oil and gas extraction taxes’ for ‘foreign oil and gas taxes’ each place it appears in 

paragraphs (1), (2), and (3), and ‘‘(ii) by computing, for purposes of paragraph (2)(A), 

the limitation under subparagraph (A) for the year to 

which such taxes are carried by substituting ‘foreign 

oil and gas extraction income’ for ‘foreign oil and gas 

income’ in subsection (a). 

‘‘(B) 2008 CREDITS.—In the case of any unused credit 

year beginning in 2008, the amendments made to this subsection by the Clean Renewable Energy and Conservation 

Tax Act of 2007 shall be treated as being in effect for any 

preceding year beginning before January 1, 2008, solely for 

purposes of determining how much of the unused foreign 

oil and gas taxes for such unused credit year may be 

deemed paid or accrued in such preceding year.’’. 

(d) CONFORMING AMENDMENT.—Section 6501(i) is amended by 

striking ‘‘oil and gas extraction taxes’’ and inserting ‘‘foreign oil and 

gas taxes’’. (e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2007. 

SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES. 

(a) IN GENERAL.—Subparagraph (A) of section 167(h)(5) (relating 

to special rule for major integrated oil companies) is amended by 

striking ‘‘5-year’’ and inserting ‘‘7-year’’. (b) EFFECTIVE DATE.—The amendment made by this section shall 

apply to amounts paid or incurred after the date of the enactment 

of this Act. 

SEC. 1564. BROKER REPORTING OF CUSTOMER’S BASIS IN SECURITIES 

TRANSACTIONS. 

(a) IN GENERAL.—

(1) BROKER REPORTING FOR SECURITIES TRANSACTIONS.—Section 6045 (relating to returns of brokers) is amended by adding 

at the end the following new subsection: 

‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE CASE OF SECURITIES TRANSACTIONS.—

‘‘(1) IN GENERAL.—If a broker is otherwise required to make 

a return under subsection (a) with respect to the gross proVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00381 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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ceeds of the sale of a covered security, the broker shall include 

in such return the information described in paragraph (2). ‘‘(2) ADDITIONAL INFORMATION REQUIRED.— ‘‘(A) IN GENERAL.—The information required under paragraph (1) to be shown on a return with respect to a covered security of a customer shall include the customer’s 

adjusted basis in such security and whether any gain or 

loss with respect to such security is long-term or shortterm (within the meaning of section 1222). ‘‘(B) DETERMINATION OF ADJUSTED BASIS.—For purposes 

of subparagraph (A)— ‘‘(i) IN GENERAL.—The customer’s adjusted basis 

shall be determined—

‘‘(I) in the case of any stock (other than any 

stock in an open-end fund), in accordance with the 

first-in first-out method unless the customer notifies the broker by means of making an adequate 

identification of the stock sold or transferred, 

‘‘(II) in the case of any stock in an open-end 

fund acquired before January 1, 2011, in accordance with any acceptable method under section 

1012 with respect to the account in which such interest is held, 

‘‘(III) in the case of any stock in an open-end 

fund acquired after December 31, 2010, in accordance with the broker’s default method unless the 

customer notifies the broker that he elects another 

acceptable method under section 1012 with respect to the account in which such interest is held, 

and 

‘‘(IV) in any other case, under the method for 

making such determination under section 1012. 

‘‘(ii) EXCEPTION FOR WASH SALES.—Except as otherwise provided by the Secretary, the customer’s adjusted basis shall be determined without regard to section 1091 (relating to loss from wash sales of stock or 

securities) unless the transactions occur in the same 

account with respect to identical securities. ‘‘(3) COVERED SECURITY.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘covered security’ means 

any specified security acquired on or after the applicable 

date if such security—

‘‘(i) was acquired through a transaction in the account in which such security is held, or 

‘‘(ii) was transferred to such account from an account in which such security was a covered security, 

but only if the broker received a statement under section 6045A with respect to the transfer. 

‘‘(B) SPECIFIED SECURITY.—The term ‘specified security’ means—

‘‘(i) any share of stock in a corporation, 

‘‘(ii) any note, bond, debenture, or other evidence of 

indebtedness, ‘‘(iii) any commodity, or contract or derivative with 

respect to such commodity, if the Secretary determines 


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that adjusted basis reporting is appropriate for purposes of this subsection, and ‘‘(iv) any other financial instrument with respect to 

which the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection. ‘‘(C) APPLICABLE DATE.—The term ‘applicable date’ means—

‘‘(i) January 1, 2009, in the case of any specified security which is stock in a corporation, and ‘‘(ii) January 1, 2011, or such later date determined 

by the Secretary in the case of any other specified security. ‘‘(4) OPEN-END FUND.—For purposes of this subsection, the 

term ‘open-end fund’ means a regulated investment company 

(as defined in section 851) which is offering for sale or has outstanding any redeemable security of which it is the issuer and 

the shares of which are not traded on an established securities 

exchange. 

‘‘(5) TREATMENT OF S CORPORATIONS.—In the case of the sale 

of a covered security acquired by an S corporation (other than 

a financial institution) after December 31, 2010, such S corporation shall be treated in the same manner as a partnership 

for purposes of this section. 

‘‘(6) SPECIAL RULES FOR SHORT SALES.— ‘‘(A) IN GENERAL.—Notwithstanding subsection (a), in 

the case of a short sale under section 1233, reporting 

under this section shall be made for the year in which 

such sale is closed. ‘‘(B) EXCEPTION FOR CONSTRUCTIVE SALES.—Subparagraph (A) shall not apply to any short sale which results 

in a constructive sale under section 1259 with respect to 

property held in the account in which the short sale is entered into.’’. (2) BROKER INFORMATION REQUIRED WITH RESPECT TO OPTIONS.—Section 6045, as amended by subsection (a), is amended by adding at the end the following new subsection: ‘‘(h) APPLICATION TO OPTIONS ON SECURITIES.— ‘‘(1) EXERCISE OF OPTION.—For purposes of this section, in 

the case of any exercise of an option on a covered security 

where the option was granted or acquired in the same account 

as the covered security, the amount received or paid with respect to such exercise shall be treated as an adjustment to 

gross proceeds or as an adjustment to basis, as the case may 

be. ‘‘(2) LAPSE OR CLOSING TRANSACTION.—For purposes of this 

section, in the case of the lapse (or closing transaction (as defined in section 1234(b)(2)(A))) of an option on a specified security where the taxpayer is the grantor of the option, this section shall apply as if the premium received for such option 

were gross proceeds received on the date of the lapse or closing 

transaction, and the cost (if any) of the closing transaction 

shall be taken into account as adjusted basis. In the case of an 

option on a specified security where the taxpayer is the grantee of such option, this section shall apply as if the grantee received gross proceeds of zero on the date of the lapse. 


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‘‘(3) PROSPECTIVE APPLICATION.—Paragraphs (1) and (2) shall 

not apply to any option which is granted or acquired before 

January 1, 2011. 

‘‘(4) DEFINITIONS.—For purposes of this subsection, the terms 

‘covered security’ and ‘specified security’ shall have the meanings given such terms in subsection (g)(3).’’. 

(3) EXTENSION OF PERIOD FOR STATEMENTS SENT TO CUSTOMERS.—

(A) IN GENERAL.—Subsection (b) of section 6045 is 

amended by striking ‘‘January 31’’ and inserting ‘‘February 

15 (January 31 in the case of returns for calendar years 

before 2010)’’. 

(B) STATEMENTS RELATED TO SUBSTITUTE PAYMENTS.—

Subsection (d) of section 6045 is amended—

(i) by striking ‘‘at such time and’’, and 

(ii) by inserting after ‘‘other item.’’ the following new 

sentence: ‘‘In the case of a payment made during any 

calendar year after 2009, the written statement required under the preceding sentence shall be furnished on or before February 15 of the year following 

the calendar year in which the payment was made.’’. 

(C) OTHER STATEMENTS.—Subsection (b) of section 6045 

is amended by adding at the end the following: ‘‘In the 

case of a consolidated reporting statement (as defined in 

regulations) with respect to any account which includes 

the statement required by this subsection, any statement 

which would otherwise be required to be furnished on or 

before January 31 of a calendar year after 2010 under section 6042(c), 6049(c)(2)(A), or 6050N(b) with respect to any 

item in such account shall instead be required to be furnished on or before February 15 of such calendar year if 

furnished as part of such consolidated reporting statement.’’. 

(b) DETERMINATION OF BASIS OF CERTAIN SECURITIES ON ACCOUNT BY ACCOUNT METHOD.—Section 1012 (relating to basis of 

property–cost) is amended—

(1) by striking ‘‘The basis of property’’ and inserting the following: 

‘‘(a) IN GENERAL.—The basis of property’’, 

(2) by striking ‘‘The cost of real property’’ and inserting the 

following: 

‘‘(b) SPECIAL RULE FOR APPORTIONED REAL ESTATE TAXES.—The 

cost of real property’’, and 

(3) by adding at the end the following new subsection: 

‘‘(c) DETERMINATIONS BY ACCOUNT.—

‘‘(1) IN GENERAL.—In the case of the sale, exchange, or other 

disposition of a specified security on or after the applicable 

date, the conventions prescribed by regulations under this section shall be applied on an account by account basis. 

‘‘(2) APPLICATION TO OPEN-END FUNDS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), any stock in an open-end fund acquired before January 1, 2009, shall be treated as a separate account from 

any such stock acquired on or after such date. 


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‘‘(B) ELECTION BY OPEN-END FUND FOR TREATMENT AS

SINGLE ACCOUNT.—If an open-end fund elects (at such time 

and in such form and manner as the Secretary may prescribe) to have this subparagraph apply with respect to 

one or more of its stockholders—

‘‘(i) subparagraph (A) shall not apply with respect to 

any stock in such fund held by such stockholders, and 

‘‘(ii) all stock in such fund which is held by such 

stockholders shall be treated as covered securities described in section 6045(g)(3) without regard to the date 

of the acquisition of such stock. 

A rule similar to the rule of the preceding sentence shall 

apply with respect to a broker holding stock in an openend fund as a nominee. 

‘‘(3) DEFINITIONS.—For purposes of this section, the terms 

‘specified security’, ‘applicable date’, and ‘open-end fund’ shall 

have the meaning given such terms in section 6045(g).’’. 

(c) INFORMATION BY TRANSFERORS TO AID BROKERS.—

(1) IN GENERAL.—Subpart B of part III of subchapter A of 

chapter 61 is amended by inserting after section 6045 the following new section: 

‘‘SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH TRANSFERS OF COVERED SECURITIES TO BROKERS. 

‘‘(a) FURNISHING OF INFORMATION.—Every applicable person 

which transfers to a broker (as defined in section 6045(c)(1)) a security which is a covered security (as defined in section 6045(g)(3)) 

in the hands of such applicable person shall furnish to such broker 

a written statement in such manner and setting forth such information as the Secretary may by regulations prescribe for purposes 

of enabling such broker to meet the requirements of section 

6045(g). 

‘‘(b) APPLICABLE PERSON.—For purposes of subsection (a), the 

term ‘applicable person’ means—

‘‘(1) any broker (as defined in section 6045(c)(1)), and 

‘‘(2) any other person as provided by the Secretary in regulations. 

‘‘(c) TIME FOR FURNISHING STATEMENT.—Any statement required 

by subsection (a) shall be furnished not later than the earlier of—

‘‘(1) 45 days after the date of the transfer described in subsection (a), or 

‘‘(2) January 15 of the year following the calendar year during which such transfer occurred.’’. 

(2) ASSESSABLE PENALTIES.—Paragraph (2) of section 6724(d) 

(defining payee statement) is amended by redesignating subparagraphs (I) through (CC) as subparagraphs (J) through 

(DD), respectively, and by inserting after subparagraph (H) the 

following new subparagraph: 

‘‘(I) section 6045A (relating to information required in 

connection with transfers of covered securities to brokers).’’. 

(3) CLERICAL AMENDMENT.—The table of sections for subpart 

B of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6045 the following 

new item: 


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‘‘Sec. 6045A. Information required in connection with transfers of covered securities 

to brokers.’’. 

(d) ADDITIONAL ISSUER INFORMATION TO AID BROKERS.—

(1) IN GENERAL.—Subpart B of part III of subchapter A of 

chapter 61 of the Internal Revenue Code of 1986, as amended 

by subsection (b), is amended by inserting after section 6045A 

the following new section: 

‘‘SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF 

SPECIFIED SECURITIES. 

‘‘(a) IN GENERAL.—According to the forms or regulations prescribed by the Secretary, any issuer of a specified security shall 

make a return setting forth— ‘‘(1) a description of any organizational action which affects 

the basis of such specified security of such issuer, ‘‘(2) the quantitative effect on the basis of such specified security resulting from such action, and ‘‘(3) such other information as the Secretary may prescribe. ‘‘(b) TIME FOR FILING RETURN.—Any return required by subsection (a) shall be filed not later than the earlier of— ‘‘(1) 45 days after the date of the action described in subsection (a), or ‘‘(2) January 15 of the year following the calendar year during which such action occurred. ‘‘(c) STATEMENTS TO BE FURNISHED TO HOLDERS OF SPECIFIED

SECURITIES OR THEIR NOMINEES.—According to the forms or regulations prescribed by the Secretary, every person required to make 

a return under subsection (a) with respect to a specified security 

shall furnish to the nominee with respect to the specified security 

(or certificate holder if there is no nominee) a written statement 

showing—

‘‘(1) the name, address, and phone number of the information 

contact of the person required to make such return, ‘‘(2) the information required to be shown on such return 

with respect to such security, and 

‘‘(3) such other information as the Secretary may prescribe. 

The written statement required under the preceding sentence shall 

be furnished to the holder on or before January 15 of the year following the calendar year during which the action described in subsection (a) occurred. 

‘‘(d) SPECIFIED SECURITY.—For purposes of this section, the term 

‘specified security’ has the meaning given such term by section 

6045(g)(3)(B). No return shall be required under this section with 

respect to actions described in subsection (a) with respect to a specified security which occur before the applicable date (as defined in 

section 6045(g)(3)(C)) with respect to such security. 

‘‘(e) PUBLIC REPORTING IN LIEU OF RETURN.—The Secretary may 

waive the requirements under subsections (a) and (c) with respect 

to a specified security, if the person required to make the return 

under subsection (a) makes publicly available, in such form and 

manner as the Secretary determines necessary to carry out the 

purposes of this section— ‘‘(1) the name, address, phone number, and email address of 

the information contact of such person, and ‘‘(2) the information described in paragraphs (1), (2), and (3) 

of subsection (a).’’. 


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(2) ASSESSABLE PENALTIES.—

(A) Subparagraph (B) of section 6724(d)(1) of such Code 

(defining information return) is amended by redesignating 

clauses (iv) through (xix) as clauses (v) through (xx), respectively, and by inserting after clause (iii) the following 

new clause: 

‘‘(iv) section 6045B(a) (relating to returns relating to 

actions affecting basis of specified securities),’’. 

(B) Paragraph (2) of section 6724(d) of such Code (defining payee statement), as amended by subsection (c)(2), is 

amended by redesignating subparagraphs (J) through (DD) 

as subparagraphs (K) through (EE), respectively, and by 

inserting after subparagraph (I) the following new subparagraph: 

‘‘(J) subsections (c) and (e) of section 6045B (relating to 

returns relating to actions affecting basis of specified securities).’’. 

(3) CLERICAL AMENDMENT.—The table of sections for subpart 

B of part III of subchapter A of chapter 61 of such Code, as 

amended by subsection (b)(3), is amended by inserting after 

the item relating to section 6045A the following new item: 

‘‘Sec. 6045B. Returns relating to actions affecting basis of specified securities.’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on January 1, 2009. 

(f) STUDY REGARDING INFORMATION RETURNS.—

(1) IN GENERAL.—The Secretary of the Treasury shall study 

the effect and feasibility of delaying the date for furnishing 

statements under sections 6042(c), 6045, 6049(c)(2)(A), and 

6050N(b) of the Internal Revenue Code of 1986 until February 

15 following the year to which such statements relate. 

(2) REPORT.—Not later than 6 months after the date of the 

enactment of this Act, the Secretary of the Treasury shall report to Congress on the results of the study conducted under 

paragraph (1). Such report shall include the Secretary’s findings regarding—

(A) the effect on tax administration of such delay, and 

(B) other administrative or legislative options to improve 

compliance and ease burdens on taxpayers and brokers 

with respect to such statements. 

SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX. 

(a) IN GENERAL.—Section 3301 (relating to rate of tax) is amended—

(1) by striking ‘‘2007’’ in paragraph (1) and inserting ‘‘2008’’, 

and 

(2) by striking ‘‘2008’’ in paragraph (2) and inserting ‘‘2009’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to wages paid after December 31, 2007. 

SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS DISTRIBUTION LINES AS 15-YEAR PROPERTY. 

(a) IN GENERAL.—Section 168(e)(3)(E)(viii) of the Internal Revenue Code of 1986 is amended by striking ‘‘January 1, 2011’’ and 

inserting ‘‘December 4, 2007’’. 

(b) EFFECTIVE DATE.—


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(1) IN GENERAL.—The amendments made by this section 

shall apply to property placed in service after December 3, 

2007. 

(2) EXCEPTION.—The amendments made by this section shall 

not apply to any property with respect to which the taxpayer 

or a related party has entered into a binding contract for the 

construction thereof on or before December 3, 2007, or, in the 

case of self-constructed property, has started construction on or 

before such date. 

SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

The percentage under subparagraph (B) of section 401(1) of the 

Tax Increase Prevention and Reconciliation Act of 2005 in effect on 

the date of the enactment of this Act is increased by 6.25 percentage points. 

SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP RETURNS. 

(a) EXTENSION OF TIME LIMITATION.—Section 6698(a) (relating to 

failure to file partnership returns) is amended by striking ‘‘5 

months’’ and inserting ‘‘12 months’’. 

(b) INCREASE IN PENALTY AMOUNT.—Paragraph (1) of section 

6698(b) is amended by striking ‘‘$50’’ and inserting ‘‘$80’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns required to be filed after the date of the enactment of this Act. 

Subtitle F—Secure Rural Schools 

SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION PROGRAM. 

(a) REAUTHORIZATION OF THE SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 2000.—The Secure Rural 

Schools and Community Self-Determination Act of 2000 (16 U.S.C. 

500 note; Public Law 106–393) is amended by striking sections 1 

through 403 and inserting the following: 

‘‘SECTION 1. SHORT TITLE. 

‘‘This Act may be cited as the ‘Secure Rural Schools and Community Self-Determination Act of 2000’. 

‘‘SEC. 2. PURPOSES. 

‘‘The purposes of this Act are—

‘‘(1) to stabilize and transition payments to counties to provide funding for schools and roads that supplements other 

available funds; 

‘‘(2) to make additional investments in, and create additional 

employment opportunities through, projects that—

‘‘(A)(i) improve the maintenance of existing infrastructure; 

‘‘(ii) implement stewardship objectives that enhance forest ecosystems; and ‘‘(iii) restore and improve land health and water quality; 

‘‘(B) enjoy broad-based support; and 

‘‘(C) have objectives that may include— ‘‘(i) road, trail, and infrastructure maintenance or 

obliteration; ‘‘(ii) soil productivity improvement; 


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‘‘(iii) improvements in forest ecosystem health; 

‘‘(iv) watershed restoration and maintenance; 

‘‘(v) the restoration, maintenance, and improvement 

of wildlife and fish habitat; ‘‘(vi) the control of noxious and exotic weeds; and 

‘‘(vii) the reestablishment of native species; and ‘‘(3) to improve cooperative relationships among— ‘‘(A) the people that use and care for Federal land; and 

‘‘(B) the agencies that manage the Federal land. 

‘‘SEC. 3. DEFINITIONS. 

‘‘In this Act: ‘‘(1) ADJUSTED SHARE.—The term ‘adjusted share’ means the 

number equal to the quotient obtained by dividing— ‘‘(A) the number equal to the quotient obtained by dividing— ‘‘(i) the base share for the eligible county; by 

‘‘(ii) the income adjustment for the eligible county; 

by ‘‘(B) the number equal to the sum of the quotients obtained under subparagraph (A) and paragraph (8)(A) for 

all eligible counties. ‘‘(2) BASE SHARE.—The term ‘base share’ means the number 

equal to the average of— ‘‘(A) the quotient obtained by dividing— ‘‘(i) the number of acres of Federal land described in 

paragraph (7)(A) in each eligible county; by ‘‘(ii) the total number acres of Federal land in all eligible counties in all eligible States; and ‘‘(B) the quotient obtained by dividing— ‘‘(i) the amount equal to the average of the 3 highest 

25-percent payments and safety net payments made to 

each eligible State for each eligible county during the 

eligibility period; by ‘‘(ii) the amount equal to the sum of the amounts 

calculated under clause (i) and paragraph (9)(B)(i) for 

all eligible counties in all eligible States during the eligibility period. ‘‘(3) COUNTY PAYMENT.—The term ‘county payment’ means 

the payment for an eligible county calculated under section 

101(b). ‘‘(4) ELIGIBLE COUNTY.—The term ‘eligible county’ means any 

county that—

‘‘(A) contains Federal land (as defined in paragraph (7)); 

and 

‘‘(B) elects to receive a share of the State payment or the 

county payment under section 102(b). 

‘‘(5) ELIGIBILITY PERIOD.—The term ‘eligibility period’ means 

fiscal year 1986 through fiscal year 1999. 

‘‘(6) ELIGIBLE STATE.—The term ‘eligible State’ means a State 

or territory of the United States that received a 25-percent 

payment for 1 or more fiscal years of the eligibility period. 

‘‘(7) FEDERAL LAND.—The term ‘Federal land’ means—

‘‘(A) land within the National Forest System, as defined 

in section 11(a) of the Forest and Rangeland Renewable 

Resources Planning Act of 1974 (16 U.S.C. 1609(a)) excluVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00389 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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sive of the National Grasslands and land utilization 

projects designated as National Grasslands administered 

pursuant to the Act of July 22, 1937 (7 U.S.C. 1010–1012); 

and 

‘‘(B) such portions of the revested Oregon and California 

Railroad and reconveyed Coos Bay Wagon Road grant land 

as are or may hereafter come under the jurisdiction of the 

Department of the Interior, which have heretofore or may 

hereafter be classified as timberlands, and power-site land 

valuable for timber, that shall be managed, except as provided in the former section 3 of the Act of August 28, 1937 

(50 Stat. 875; 43 U.S.C. 1181c), for permanent forest production. 

‘‘(8) 50-PERCENT ADJUSTED SHARE.—The term ‘50-percent adjusted share’ means the number equal to the quotient obtained 

by dividing—

‘‘(A) the number equal to the quotient obtained by dividing—

‘‘(i) the 50-percent base share for the eligible county; 

by 

‘‘(ii) the income adjustment for the eligible county; 

by 

‘‘(B) the number equal to the sum of the quotients obtained under subparagraph (A) and paragraph (1)(A) for 

all eligible counties. 

‘‘(9) 50-PERCENT BASE SHARE.—The term ‘50-percent base 

share’ means the number equal to the average of—

‘‘(A) the quotient obtained by dividing—

‘‘(i) the number of acres of Federal land described in 

paragraph (7)(B) in each eligible county; by 

‘‘(ii) the total number acres of Federal land in all eligible counties in all eligible States; and 

‘‘(B) the quotient obtained by dividing—

‘‘(i) the amount equal to the average of the 3 highest 

50-percent payments made to each eligible county during the eligibility period; by 

‘‘(ii) the amount equal to the sum of the amounts 

calculated under clause (i) and paragraph (2)(B)(i) for 

all eligible counties in all eligible States during the eligibility period. 

‘‘(10) 50-PERCENT PAYMENT.—The term ‘50-percent payment’

means the payment that is the sum of the 50-percent share 

otherwise paid to a county pursuant to title II of the Act of August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), and 

the payment made to a county pursuant to the Act of May 24, 

1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f–1 et seq.). 

‘‘(11) FULL FUNDING AMOUNT.—The term ‘full funding 

amount’ means—

‘‘(A) $500,000,000 for fiscal year 2008; and 

‘‘(B) for fiscal year 2009 and each fiscal year thereafter, 

the amount that is equal to 85 percent of the full funding 

amount for the preceding fiscal year. 

‘‘(12) INCOME ADJUSTMENT.—The term ‘income adjustment’

means the square of the quotient obtained by dividing—


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‘‘(A) the per capita personal income for each eligible 

county; by 

‘‘(B) the median per capita personal income of all eligible 

counties. 

‘‘(13) PER CAPITA PERSONAL INCOME.—The term ‘per capita 

personal income’ means the most recent per capita personal income data, as determined by the Bureau of Economic Analysis. 

‘‘(14) SAFETY NET PAYMENTS.—The term ‘safety net payments’ means the special payment amounts paid to States and 

counties required by section 13982 or 13983 of the Omnibus 

Budget Reconciliation Act of 1993 (Public Law 103–66; 16 

U.S.C. 500 note; 43 U.S.C. 1181f note). 

‘‘(15) SECRETARY CONCERNED.—The term ‘Secretary concerned’ means—

‘‘(A) the Secretary of Agriculture or the designee of the 

Secretary of Agriculture with respect to the Federal land 

described in paragraph (7)(A); and 

‘‘(B) the Secretary of the Interior or the designee of the 

Secretary of the Interior with respect to the Federal land 

described in paragraph (7)(B). 

‘‘(16) STATE PAYMENT.—The term ‘State payment’ means the 

payment for an eligible State calculated under section 101(a). 

‘‘(17) 25-PERCENT PAYMENT.—The term ‘25-percent payment’

means the payment to States required by the sixth paragraph 

under the heading of ‘FOREST SERVICE’ in the Act of May 

23, 1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the 

Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500). 

‘‘TITLE I—SECURE PAYMENTS FOR STATES AND 

COUNTIES CONTAINING FEDERAL LAND 

‘‘SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL 

LAND. 

‘‘(a) STATE PAYMENT.—For each of fiscal years 2008 through 

2011, the Secretary of Agriculture shall calculate for each eligible 

State an amount equal to the sum of the products obtained by multiplying—

‘‘(1) the adjusted share for each eligible county within the eligible State; by 

‘‘(2) the full funding amount for the fiscal year. 

‘‘(b) COUNTY PAYMENT.—For each of fiscal years 2008 through 

2011, the Secretary of the Interior shall calculate for each eligible 

county that received a 50-percent payment during the eligibility period an amount equal to the product obtained by multiplying—

‘‘(1) the 50-percent adjusted share for the eligible county; by 

‘‘(2) the full funding amount for the fiscal year. 

‘‘SEC. 102. PAYMENTS TO STATES AND COUNTIES. 

‘‘(a) PAYMENT AMOUNTS.—Except as provided in section 103, the 

Secretary of the Treasury shall pay to—

‘‘(1) a State or territory of the United States an amount 

equal to the sum of the amounts elected under subsection (b) 

by each county within the State or territory for—

‘‘(A) if the county is eligible for the 25-percent payment, 

the share of the 25-percent payment; or 


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‘‘(B) the share of the State payment of the eligible county; and ‘‘(2) a county an amount equal to the amount elected under 

subsection (b) by each county for— ‘‘(A) if the county is eligible for the 50-percent payment, 

the 50-percent payment; or ‘‘(B) the county payment for the eligible county. ‘‘(b) ELECTION TO RECEIVE PAYMENT AMOUNT.— ‘‘(1) ELECTION; SUBMISSION OF RESULTS.— ‘‘(A) IN GENERAL.—The election to receive a share of the 

State payment, the county payment, a share of the State 

payment and the county payment, a share of the 25-percent payment, the 50-percent payment, or a share of the 

25-percent payment and the 50-percent payment, as applicable, shall be made at the discretion of each affected 

county by August 1, 2008, and August 1 of each second fiscal year thereafter, in accordance with paragraph (2), and 

transmitted to the Secretary concerned by the Governor of 

each eligible State. ‘‘(B) FAILURE TO TRANSMIT.—If an election for an affected 

county is not transmitted to the Secretary concerned by 

the date specified under subparagraph (A), the affected 

county shall be considered to have elected to receive a 

share of the State payment, the county payment, or a 

share of the State payment and the county payment, as 

applicable. 

‘‘(2) DURATION OF ELECTION.— ‘‘(A) IN GENERAL.—A county election to receive a share 

of the 25-percent payment or 50-percent payment, as applicable, shall be effective for 2 fiscal years. ‘‘(B) FULL FUNDING AMOUNT.—If a county elects to receive a share of the State payment or the county payment, 

the election shall be effective for all subsequent fiscal 

years through fiscal year 2011. 

‘‘(3) SOURCE OF PAYMENT AMOUNTS.—The payment to an eligible State or eligible county under this section for a fiscal year 

shall be derived from— ‘‘(A) any revenues, fees, penalties, or miscellaneous receipts, exclusive of deposits to any relevant trust fund, special account, or permanent operating funds, received by 

the Federal Government from activities by the Bureau of 

Land Management or the Forest Service on the applicable 

Federal land; and ‘‘(B) to the extent of any shortfall, out of any amounts 

in the Treasury of the United States not otherwise appropriated. ‘‘(c) DISTRIBUTION AND EXPENDITURE OF PAYMENTS.—

‘‘(1) DISTRIBUTION METHOD.—A State that receives a payment under subsection (a) for Federal land described in section 

3(7)(A) shall distribute the appropriate payment amount 

among the appropriate counties in the State in accordance 

with—

‘‘(A) the Act of May 23, 1908 (16 U.S.C. 500); and 

‘‘(B) section 13 of the Act of March 1, 1911 (36 Stat. 963; 

16 U.S.C. 500). 


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‘‘(2) EXPENDITURE PURPOSES.—Subject to subsection (d), payments received by a State under subsection (a) and distributed 

to counties in accordance with paragraph (1) shall be expended 

as required by the laws referred to in paragraph (1). 

‘‘(d) EXPENDITURE RULES FOR ELIGIBLE COUNTIES.—

‘‘(1) ALLOCATIONS.—

‘‘(A) USE OF PORTION IN SAME MANNER AS 25-PERCENT

PAYMENT OR 50-PERCENT PAYMENT, AS APPLICABLE.—Except 

as provided in paragraph (3)(B), if an eligible county elects 

to receive its share of the State payment or the county 

payment, not less than 80 percent, but not more than 85 

percent, of the funds shall be expended in the same manner in which the 25-percent payments or 50-percent payment, as applicable, are required to be expended. 

‘‘(B) ELECTION AS TO USE OF BALANCE.—Except as provided in subparagraph (C), an eligible county shall elect to 

do 1 or more of the following with the balance of any funds 

not expended pursuant to subparagraph (A): 

‘‘(i) Reserve any portion of the balance for projects in 

accordance with title II. 

‘‘(ii) Reserve not more than 7 percent of the total 

share for the eligible county of the State payment or 

the county payment for projects in accordance with 

title III. 

‘‘(iii) Return the portion of the balance not reserved 

under clauses (i) and (ii) to the Treasury of the United 

States. 

‘‘(C) COUNTIES WITH MODEST DISTRIBUTIONS.—In the 

case of each eligible county to which more than $100,000, 

but less than $350,000, is distributed for any fiscal year 

pursuant to either or both of paragraphs (1)(B) and (2)(B) 

of subsection (a), the eligible county, with respect to the 

balance of any funds not expended pursuant to subparagraph (A) for that fiscal year, shall—

‘‘(i) reserve any portion of the balance for—

‘‘(I) carrying out projects under title II; 

‘‘(II) carrying out projects under title III; or 

‘‘(III) a combination of the purposes described in 

subclauses (I) and (II); or 

‘‘(ii) return the portion of the balance not reserved 

under clause (i) to the Treasury of the United States. 

‘‘(2) DISTRIBUTION OF FUNDS.—

‘‘(A) IN GENERAL.—Funds reserved by an eligible county 

under subparagraph (B)(i) or (C)(i) of paragraph (1) for 

carrying out projects under title II shall be deposited in a 

special account in the Treasury of the United States. 

‘‘(B) AVAILABILITY.—Amounts deposited under subparagraph (A) shall—

‘‘(i) be available for expenditure by the Secretary 

concerned, without further appropriation; and 

‘‘(ii) remain available until expended in accordance 

with title II. 

‘‘(3) ELECTION.—

‘‘(A) NOTIFICATION.—


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‘‘(i) IN GENERAL.—An eligible county shall notify the 

Secretary concerned of an election by the eligible county under this subsection not later than September 30 

of each fiscal year. 

‘‘(ii) FAILURE TO ELECT.—Except as provided in subparagraph (B), if the eligible county fails to make an 

election by the date specified in clause (i), the eligible 

county shall—

‘‘(I) be considered to have elected to expend 85 

percent of the funds in accordance with paragraph 

(1)(A); and 

‘‘(II) return the balance to the Treasury of the 

United States. 

‘‘(B) COUNTIES WITH MINOR DISTRIBUTIONS.—In the case 

of each eligible county to which less than $100,000 is distributed for any fiscal year pursuant to either or both of 

paragraphs (1)(B) and (2)(B) of subsection (a), the eligible 

county may elect to expend all the funds in the same manner in which the 25-percent payments or 50-percent payments, as applicable, are required to be expended. 

‘‘(e) TIME FOR PAYMENT.—The payments required under this section for a fiscal year shall be made as soon as practicable after the 

end of that fiscal year. 

‘‘SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, 

OREGON, AND WASHINGTON. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ADJUSTED AMOUNT.—The term ‘adjusted amount’ means, 

with respect to a covered State—

‘‘(A) for fiscal year 2008, 90 percent of—

‘‘(i) the sum of the amounts paid for fiscal year 2006 

under section 102(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the covered State 

that have elected under section 102(b) to receive a 

share of the State payment for fiscal year 2008; and 

‘‘(ii) the sum of the amounts paid for fiscal year 2006 

under section 103(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the State of Oregon 

that have elected under section 102(b) to receive the 

county payment for fiscal year 2008; 

‘‘(B) for fiscal year 2009, 76 percent of—

‘‘(i) the sum of the amounts paid for fiscal year 2006 

under section 102(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the covered State 

that have elected under section 102(b) to receive a 

share of the State payment for fiscal year 2009; and 

‘‘(ii) the sum of the amounts paid for fiscal year 2006 

under section 103(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the State of Oregon 

that have elected under section 102(b) to receive the 

county payment for fiscal year 2009; and 

‘‘(C) for fiscal year 2010, 65 percent of—

‘‘(i) the sum of the amounts paid for fiscal year 2006 

under section 102(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the covered State 


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that have elected under section 102(b) to receive a 

share of the State payment for fiscal year 2010; and ‘‘(ii) the sum of the amounts paid for fiscal year 2006 

under section 103(a)(2) (as in effect on September 29, 

2006) for the eligible counties in the State of Oregon 

that have elected under section 102(b) to receive the 

county payment for fiscal year 2010. ‘‘(2) COVERED STATE.—The term ‘covered State’ means each 

of the States of California, Oregon, and Washington. ‘‘(b) TRANSITION PAYMENTS.—For each of fiscal years 2008 

through 2010, in lieu of the payment amounts that otherwise would 

have been made under paragraphs (1)(B) and (2)(B) of section 

102(a), the Secretary of the Treasury shall pay the adjusted 

amount to each covered State and the eligible counties within the 

covered State, as applicable. ‘‘(c) DISTRIBUTION OF ADJUSTED AMOUNT IN OREGON AND WASH- INGTON.—It is the intent of Congress that the method of distributing the payments under subsection (b) among the counties in the 

States of Oregon and Washington for each of fiscal years 2008 

through 2010 be in the same proportion that the payments were 

distributed to the eligible counties in fiscal year 2006. ‘‘(d) DISTRIBUTION OF PAYMENTS IN CALIFORNIA.—The following 

payments shall be distributed among the eligible counties in the 

State of California in the same proportion that payments under 

section 102(a)(2) (as in effect on September 29, 2006) were distributed to the eligible counties for fiscal year 2006: ‘‘(1) Payments to the State of California under subsection (b). 

‘‘(2) The shares of the eligible counties of the State payment 

for California under section 102 for fiscal year 2011. ‘‘(e) TREATMENT OF PAYMENTS.—For purposes of this Act, any 

payment made under subsection (b) shall be considered to be a payment made under section 102(a). 

‘‘TITLE II—SPECIAL PROJECTS ON FEDERAL LAND 

‘‘SEC. 201. DEFINITIONS. 

‘‘In this title: ‘‘(1) PARTICIPATING COUNTY.—The term ‘participating county’ means an eligible county that elects under section 102(d) to expend a portion of the Federal funds received under section 102 

in accordance with this title. ‘‘(2) PROJECT FUNDS.—The term ‘project funds’ means all 

funds an eligible county elects under section 102(d) to reserve 

for expenditure in accordance with this title. ‘‘(3) RESOURCE ADVISORY COMMITTEE.—The term ‘resource 

advisory committee’ means— ‘‘(A) an advisory committee established by the Secretary 

concerned under section 205; or ‘‘(B) an advisory committee determined by the Secretary 

concerned to meet the requirements of section 205. ‘‘(4) RESOURCE MANAGEMENT PLAN.—The term ‘resource management plan’ means— ‘‘(A) a land use plan prepared by the Bureau of Land 

Management for units of the Federal land described in section 3(7)(B) pursuant to section 202 of the Federal Land 

Policy and Management Act of 1976 (43 U.S.C. 1712); or 


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‘‘(B) a land and resource management plan prepared by 

the Forest Service for units of the National Forest System 

pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974l (16 U.S.C. 1604). 

‘‘SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS. 

‘‘(a) LIMITATION.—Project funds shall be expended solely on 

projects that meet the requirements of this title. 

‘‘(b) AUTHORIZED USES.—Project funds may be used by the Secretary concerned for the purpose of entering into and implementing 

cooperative agreements with willing Federal agencies, State and 

local governments, private and nonprofit entities, and landowners 

for protection, restoration, and enhancement of fish and wildlife 

habitat, and other resource objectives consistent with the purposes 

of this Act on Federal land and on non-Federal land where projects 

would benefit the resources on Federal land. 

‘‘SEC. 203. SUBMISSION OF PROJECT PROPOSALS. 

‘‘(a) SUBMISSION OF PROJECT PROPOSALS TO SECRETARY CONCERNED.—

‘‘(1) PROJECTS FUNDED USING PROJECT FUNDS.—Not later 

than September 30 for fiscal year 2008, and each September 30 

thereafter for each succeeding fiscal year through fiscal year 

2011, each resource advisory committee shall submit to the 

Secretary concerned a description of any projects that the resource advisory committee proposes the Secretary undertake 

using any project funds reserved by eligible counties in the 

area in which the resource advisory committee has geographic 

jurisdiction. 

‘‘(2) PROJECTS FUNDED USING OTHER FUNDS.—A resource advisory committee may submit to the Secretary concerned a description of any projects that the committee proposes the Secretary undertake using funds from State or local governments, 

or from the private sector, other than project funds and funds 

appropriated and otherwise available to do similar work. 

‘‘(3) JOINT PROJECTS.—Participating counties or other persons may propose to pool project funds or other funds, described in paragraph (2), and jointly propose a project or group 

of projects to a resource advisory committee established under 

section 205. 

‘‘(b) REQUIRED DESCRIPTION OF PROJECTS.—In submitting proposed projects to the Secretary concerned under subsection (a), a 

resource advisory committee shall include in the description of each 

proposed project the following information: ‘‘(1) The purpose of the project and a description of how the 

project will meet the purposes of this title. 

‘‘(2) The anticipated duration of the project. 

‘‘(3) The anticipated cost of the project. 

‘‘(4) The proposed source of funding for the project, whether 

project funds or other funds. 

‘‘(5)(A) Expected outcomes, including how the project will 

meet or exceed desired ecological conditions, maintenance objectives, or stewardship objectives. 

‘‘(B) An estimate of the amount of any timber, forage, and 

other commodities and other economic activity, including jobs 

generated, if any, anticipated as part of the project. 


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‘‘(6) A detailed monitoring plan, including funding needs and 

sources, that—

‘‘(A) tracks and identifies the positive or negative impacts of the project, implementation, and provides for validation monitoring; and 

‘‘(B) includes an assessment of the following: 

‘‘(i) Whether or not the project met or exceeded desired ecological conditions; created local employment 

or training opportunities, including summer youth jobs 

programs such as the Youth Conservation Corps 

where appropriate. 

‘‘(ii) Whether the project improved the use of, or 

added value to, any products removed from land consistent with the purposes of this title. 

‘‘(7) An assessment that the project is to be in the public interest. 

‘‘(c) AUTHORIZED PROJECTS.—Projects proposed under subsection 

(a) shall be consistent with section 2. 

‘‘SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY 

CONCERNED. 

‘‘(a) CONDITIONS FOR APPROVAL OF PROPOSED PROJECT.—The Secretary concerned may make a decision to approve a project submitted by a resource advisory committee under section 203 only if 

the proposed project satisfies each of the following conditions: 

‘‘(1) The project complies with all applicable Federal laws (including regulations). 

‘‘(2) The project is consistent with the applicable resource 

management plan and with any watershed or subsequent plan 

developed pursuant to the resource management plan and approved by the Secretary concerned. 

‘‘(3) The project has been approved by the resource advisory 

committee in accordance with section 205, including the procedures issued under subsection (e) of that section. 

‘‘(4) A project description has been submitted by the resource 

advisory committee to the Secretary concerned in accordance 

with section 203. 

‘‘(5) The project will improve the maintenance of existing infrastructure, implement stewardship objectives that enhance 

forest ecosystems, and restore and improve land health and 

water quality. 

‘‘(b) ENVIRONMENTAL REVIEWS.—

‘‘(1) REQUEST FOR PAYMENT BY COUNTY.—The Secretary concerned may request the resource advisory committee submitting a proposed project to agree to the use of project funds to 

pay for any environmental review, consultation, or compliance 

with applicable environmental laws required in connection 

with the project. 

‘‘(2) CONDUCT OF ENVIRONMENTAL REVIEW.—If a payment is 

requested under paragraph (1) and the resource advisory committee agrees to the expenditure of funds for this purpose, the 

Secretary concerned shall conduct environmental review, consultation, or other compliance responsibilities in accordance 

with Federal laws (including regulations). 

‘‘(3) EFFECT OF REFUSAL TO PAY.—


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‘‘(A) IN GENERAL.—If a resource advisory committee does 

not agree to the expenditure of funds under paragraph (1), 

the project shall be deemed withdrawn from further consideration by the Secretary concerned pursuant to this 

title. ‘‘(B) EFFECT OF WITHDRAWAL.—A withdrawal under subparagraph (A) shall be deemed to be a rejection of the 

project for purposes of section 207(c). ‘‘(c) DECISIONS OF SECRETARY CONCERNED.— ‘‘(1) REJECTION OF PROJECTS.— ‘‘(A) IN GENERAL.—A decision by the Secretary concerned 

to reject a proposed project shall be at the sole discretion 

of the Secretary concerned. ‘‘(B) NO ADMINISTRATIVE APPEAL OR JUDICIAL REVIEW.—

Notwithstanding any other provision of law, a decision by 

the Secretary concerned to reject a proposed project shall 

not be subject to administrative appeal or judicial review. 

‘‘(C) NOTICE OF REJECTION.—Not later than 30 days after 

the date on which the Secretary concerned makes the rejection decision, the Secretary concerned shall notify in 

writing the resource advisory committee that submitted 

the proposed project of the rejection and the reasons for rejection. ‘‘(2) NOTICE OF PROJECT APPROVAL.—The Secretary concerned 

shall publish in the Federal Register notice of each project approved under subsection (a) if the notice would be required had 

the project originated with the Secretary. ‘‘(d) SOURCE AND CONDUCT OF PROJECT.—Once the Secretary concerned accepts a project for review under section 203, the acceptance shall be deemed a Federal action for all purposes. ‘‘(e) IMPLEMENTATION OF APPROVED PROJECTS.— ‘‘(1) COOPERATION.—Notwithstanding chapter 63 of title 31, 

United States Code, using project funds the Secretary concerned may enter into contracts, grants, and cooperative agreements with States and local governments, private and nonprofit entities, and landowners and other persons to assist the 

Secretary in carrying out an approved project. ‘‘(2) BEST VALUE CONTRACTING.— ‘‘(A) IN GENERAL.—For any project involving a contract 

authorized by paragraph (1) the Secretary concerned may 

elect a source for performance of the contract on a best 

value basis. ‘‘(B) FACTORS.—The Secretary concerned shall determine 

best value based on such factors as—

‘‘(i) the technical demands and complexity of the 

work to be done; 

‘‘(ii)(I) the ecological objectives of the project; and 

‘‘(II) the sensitivity of the resources being treated; 

‘‘(iii) the past experience by the contractor with the 

type of work being done, using the type of equipment 

proposed for the project, and meeting or exceeding desired ecological conditions; and ‘‘(iv) the commitment of the contractor to hiring 

highly qualified workers and local residents. ‘‘(3) MERCHANTABLE TIMBER CONTRACTING PILOT PROGRAM.—


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‘‘(A) ESTABLISHMENT.—The Secretary concerned shall establish a pilot program to implement a certain percentage 

of approved projects involving the sale of merchantable 

timber using separate contracts for— ‘‘(i) the harvesting or collection of merchantable timber; and ‘‘(ii) the sale of the timber. ‘‘(B) ANNUAL PERCENTAGES.—Under the pilot program, 

the Secretary concerned shall ensure that, on a nationwide 

basis, not less than the following percentage of all approved projects involving the sale of merchantable timber 

are implemented using separate contracts: ‘‘(i) For fiscal year 2008, 35 percent. 

‘‘(ii) For fiscal year 2009, 45 percent. 

‘‘(iii) For each of fiscal years 2010 and 2011, 50 percent. ‘‘(C) INCLUSION IN PILOT PROGRAM.—The decision whether to use separate contracts to implement a project involving the sale of merchantable timber shall be made by the 

Secretary concerned after the approval of the project under 

this title. ‘‘(D) ASSISTANCE.— ‘‘(i) IN GENERAL.—The Secretary concerned may use 

funds from any appropriated account available to the 

Secretary for the Federal land to assist in the administration of projects conducted under the pilot program. ‘‘(ii) MAXIMUM AMOUNT OF ASSISTANCE.—The total 

amount obligated under this subparagraph may not 

exceed $1,000,000 for any fiscal year during which the 

pilot program is in effect. ‘‘(E) REVIEW AND REPORT.— ‘‘(i) INITIAL REPORT.—Not later than September 30, 

2010, the Comptroller General shall submit to the 

Committees on Agriculture, Nutrition, and Forestry 

and Energy and Natural Resources of the Senate and 

the Committees on Agriculture and Natural Resources 

of the House of Representatives a report assessing the 

pilot program. ‘‘(ii) ANNUAL REPORT.—The Secretary concerned 

shall submit to the Committees on Agriculture, Nutrition, and Forestry and Energy and Natural Resources 

of the Senate and the Committees on Agriculture and 

Natural Resources of the House of Representatives an 

annual report describing the results of the pilot program. 

‘‘(f) REQUIREMENTS FOR PROJECT FUNDS.—The Secretary shall 

ensure that at least 50 percent of all project funds be used for 

projects that are primarily dedicated—

‘‘(1) to road maintenance, decommissioning, or obliteration; 

or 

‘‘(2) to restoration of streams and watersheds. 

‘‘SEC. 205. RESOURCE ADVISORY COMMITTEES. 

‘‘(a) ESTABLISHMENT AND PURPOSE OF RESOURCE ADVISORY COMMITTEES.—


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‘‘(1) ESTABLISHMENT.—The Secretary concerned shall establish and maintain resource advisory committees to perform the 

duties in subsection (b), except as provided in paragraph (4). 

‘‘(2) PURPOSE.—The purpose of a resource advisory committee shall be—

‘‘(A) to improve collaborative relationships; and 

‘‘(B) to provide advice and recommendations to the land 

management agencies consistent with the purposes of this 

title. 

‘‘(3) ACCESS TO RESOURCE ADVISORY COMMITTEES.—To ensure 

that each unit of Federal land has access to a resource advisory committee, and that there is sufficient interest in participation on a committee to ensure that membership can be balanced in terms of the points of view represented and the functions to be performed, the Secretary concerned may, establish 

resource advisory committees for part of, or 1 or more, units 

of Federal land. 

‘‘(4) EXISTING ADVISORY COMMITTEES.—

‘‘(A) IN GENERAL.—An advisory committee that meets 

the requirements of this section, a resource advisory committee established before September 29, 2006, or an advisory committee determined by the Secretary concerned before September 29, 2006, to meet the requirements of this 

section may be deemed by the Secretary concerned to be 

a resource advisory committee for the purposes of this 

title. 

‘‘(B) CHARTER.—A charter for a committee described in 

subparagraph (A) that was filed on or before September 

29, 2006, shall be considered to be filed for purposes of this 

Act. 

‘‘(C) BUREAU OF LAND MANAGEMENT ADVISORY COMMITTEES.—The Secretary of the Interior may deem a resource 

advisory committee meeting the requirements of subpart 

1784 of part 1780 of title 43, Code of Federal Regulations, 

as a resource advisory committee for the purposes of this 

title. 

‘‘(b) DUTIES.—A resource advisory committee shall—

‘‘(1) review projects proposed under this title by participating 

counties and other persons; 

‘‘(2) propose projects and funding to the Secretary concerned 

under section 203; 

‘‘(3) provide early and continuous coordination with appropriate land management agency officials in recommending 

projects consistent with purposes of this Act under this title; 

‘‘(4) provide frequent opportunities for citizens, organizations, tribes, land management agencies, and other interested 

parties to participate openly and meaningfully, beginning at 

the early stages of the project development process under this 

title; 

‘‘(5)(A) monitor projects that have been approved under section 204; and 

‘‘(B) advise the designated Federal official on the progress of 

the monitoring efforts under subparagraph (A); and 


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‘‘(6) make recommendations to the Secretary concerned for 

any appropriate changes or adjustments to the projects being 

monitored by the resource advisory committee. ‘‘(c) APPOINTMENT BY THE SECRETARY.— ‘‘(1) APPOINTMENT AND TERM.— ‘‘(A) IN GENERAL.—The Secretary concerned, shall appoint the members of resource advisory committees for a 

term of 4 years beginning on the date of appointment. ‘‘(B) REAPPOINTMENT.—The Secretary concerned may reappoint members to subsequent 4-year terms. ‘‘(2) BASIC REQUIREMENTS.—The Secretary concerned shall 

ensure that each resource advisory committee established 

meets the requirements of subsection (d). ‘‘(3) INITIAL APPOINTMENT.—Not later than 180 days after the 

date of the enactment of this Act, the Secretary concerned 

shall make initial appointments to the resource advisory committees. 

‘‘(4) VACANCIES.—The Secretary concerned shall make appointments to fill vacancies on any resource advisory committee as soon as practicable after the vacancy has occurred. ‘‘(5) COMPENSATION.—Members of the resource advisory committees shall not receive any compensation. ‘‘(d) COMPOSITION OF ADVISORY COMMITTEE.— ‘‘(1) NUMBER.—Each resource advisory committee shall be 

comprised of 15 members. ‘‘(2) COMMUNITY INTERESTS REPRESENTED.—Committee members shall be representative of the interests of the following 3 

categories: ‘‘(A) 5 persons that— ‘‘(i) represent organized labor or non-timber forest 

product harvester groups; ‘‘(ii) represent developed outdoor recreation, off highway vehicle users, or commercial recreation activities; ‘‘(iii) represent—

‘‘(I) energy and mineral development interests; 

or 

‘‘(II) commercial or recreational fishing interests; 

‘‘(iv) represent the commercial timber industry; or 

‘‘(v) hold Federal grazing or other land use permits, 

or represent nonindustrial private forest land owners, 

within the area for which the committee is organized. 

‘‘(B) 5 persons that represent—

‘‘(i) nationally recognized environmental organizations; 

‘‘(ii) regionally or locally recognized environmental 

organizations; 

‘‘(iii) dispersed recreational activities; 

‘‘(iv) archaeological and historical interests; or 

‘‘(v) nationally or regionally recognized wild horse 

and burro interest groups, wildlife or hunting organizations, or watershed associations. 

‘‘(C) 5 persons that—

‘‘(i) hold State elected office (or a designee); 

‘‘(ii) hold county or local elected office; 


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‘‘(iii) represent American Indian tribes within or adjacent to the area for which the committee is organized; ‘‘(iv) are school officials or teachers; or 

‘‘(v) represent the affected public at large. ‘‘(3) BALANCED REPRESENTATION.—In appointing committee 

members from the 3 categories in paragraph (2), the Secretary 

concerned shall provide for balanced and broad representation 

from within each category. ‘‘(4) GEOGRAPHIC DISTRIBUTION.—The members of a resource 

advisory committee shall reside within the State in which the 

committee has jurisdiction and, to extent practicable, the Secretary concerned shall ensure local representation in each category in paragraph (2). ‘‘(5) CHAIRPERSON.—A majority on each resource advisory 

committee shall select the chairperson of the committee. ‘‘(e) APPROVAL PROCEDURES.— ‘‘(1) IN GENERAL.—Subject to paragraph (3), each resource 

advisory committee shall establish procedures for proposing 

projects to the Secretary concerned under this title. ‘‘(2) QUORUM.—A quorum must be present to constitute an 

official meeting of the committee. ‘‘(3) APPROVAL BY MAJORITY OF MEMBERS.—A project may be 

proposed by a resource advisory committee to the Secretary 

concerned under section 203(a), if the project has been approved by a majority of members of the committee from each 

of the 3 categories in subsection (d)(2). ‘‘(f) OTHER COMMITTEE AUTHORITIES AND REQUIREMENTS.— ‘‘(1) STAFF ASSISTANCE.—A resource advisory committee may 

submit to the Secretary concerned a request for periodic staff 

assistance from Federal employees under the jurisdiction of the 

Secretary. ‘‘(2) MEETINGS.—All meetings of a resource advisory committee shall be announced at least 1 week in advance in a local 

newspaper of record and shall be open to the public. ‘‘(3) RECORDS.—A resource advisory committee shall maintain records of the meetings of the committee and make the 

records available for public inspection. 

‘‘SEC. 206. USE OF PROJECT FUNDS. 

‘‘(a) AGREEMENT REGARDING SCHEDULE AND COST OF PROJECT.— ‘‘(1) AGREEMENT BETWEEN PARTIES.—The Secretary concerned may carry out a project submitted by a resource advisory committee under section 203(a) using project funds or 

other funds described in section 203(a)(2), if, as soon as practicable after the issuance of a decision document for the project 

and the exhaustion of all administrative appeals and judicial 

review of the project decision, the Secretary concerned and the 

resource advisory committee enter into an agreement addressing, at a minimum, the following: 

‘‘(A) The schedule for completing the project. 

‘‘(B) The total cost of the project, including the level of 

agency overhead to be assessed against the project. 

‘‘(C) For a multiyear project, the estimated cost of the 

project for each of the fiscal years in which it will be carried out. 


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‘‘(D) The remedies for failure of the Secretary concerned 

to comply with the terms of the agreement consistent with 

current Federal law. 

‘‘(2) LIMITED USE OF FEDERAL FUNDS.—The Secretary concerned may decide, at the sole discretion of the Secretary concerned, to cover the costs of a portion of an approved project 

using Federal funds appropriated or otherwise available to the 

Secretary for the same purposes as the project. 

‘‘(b) TRANSFER OF PROJECT FUNDS.—

‘‘(1) INITIAL TRANSFER REQUIRED.—As soon as practicable 

after the agreement is reached under subsection (a) with regard to a project to be funded in whole or in part using project 

funds, or other funds described in section 203(a)(2), the Secretary concerned shall transfer to the applicable unit of National Forest System land or Bureau of Land Management District an amount of project funds equal to—

‘‘(A) in the case of a project to be completed in a single 

fiscal year, the total amount specified in the agreement to 

be paid using project funds, or other funds described in 

section 203(a)(2); or 

‘‘(B) in the case of a multiyear project, the amount specified in the agreement to be paid using project funds, or 

other funds described in section 203(a)(2) for the first fiscal 

year. 

‘‘(2) CONDITION ON PROJECT COMMENCEMENT.—The unit of 

National Forest System land or Bureau of Land Management 

District concerned, shall not commence a project until the 

project funds, or other funds described in section 203(a)(2) required to be transferred under paragraph (1) for the project, 

have been made available by the Secretary concerned. 

‘‘(3) SUBSEQUENT TRANSFERS FOR MULTIYEAR PROJECTS.—

‘‘(A) IN GENERAL.—For the second and subsequent fiscal 

years of a multiyear project to be funded in whole or in 

part using project funds, the unit of National Forest System land or Bureau of Land Management District concerned shall use the amount of project funds required to 

continue the project in that fiscal year according to the 

agreement entered into under subsection (a). 

‘‘(B) SUSPENSION OF WORK.—The Secretary concerned 

shall suspend work on the project if the project funds required by the agreement in the second and subsequent fiscal years are not available. 

‘‘SEC. 207. AVAILABILITY OF PROJECT FUNDS. 

‘‘(a) SUBMISSION OF PROPOSED PROJECTS TO OBLIGATE FUNDS.—

By September 30 of each fiscal year through fiscal year 2011, a resource advisory committee shall submit to the Secretary concerned 

pursuant to section 203(a)(1) a sufficient number of project proposals that, if approved, would result in the obligation of at least 

the full amount of the project funds reserved by the participating 

county in the preceding fiscal year. 

‘‘(b) USE OR TRANSFER OF UNOBLIGATED FUNDS.—Subject to section 208, if a resource advisory committee fails to comply with subsection (a) for a fiscal year, any project funds reserved by the participating county in the preceding fiscal year and remaining unobliVerDate Aug 31 2005 07:37 Dec 06, 2007 Jkt 039471 PO 00000 Frm 00403 Fmt 6659 Sfmt 6602 E:\HR\OC\HR474.XXX HR474

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gated shall be available for use as part of the project submissions 

in the next fiscal year. 

‘‘(c) EFFECT OF REJECTION OF PROJECTS.—Subject to section 208, 

any project funds reserved by a participating county in the preceding fiscal year that are unobligated at the end of a fiscal year 

because the Secretary concerned has rejected one or more proposed 

projects shall be available for use as part of the project submissions 

in the next fiscal year. 

‘‘(d) EFFECT OF COURT ORDERS.—

‘‘(1) IN GENERAL.—If an approved project under this Act is 

enjoined or prohibited by a Federal court, the Secretary concerned shall return the unobligated project funds related to the 

project to the participating county or counties that reserved the 

funds. 

‘‘(2) EXPENDITURE OF FUNDS.—The returned funds shall be 

available for the county to expend in the same manner as the 

funds reserved by the county under subparagraph (B) or (C)(i) 

of section 102(d)(1). 

‘‘SEC. 208. TERMINATION OF AUTHORITY. 

‘‘(a) IN GENERAL.—The authority to initiate projects under this 

title shall terminate on September 30, 2011. 

‘‘(b) DEPOSITS IN TREASURY.—Any project funds not obligated by 

September 30, 2012, shall be deposited in the Treasury of the 

United States. 

‘‘TITLE III—COUNTY FUNDS 

‘‘SEC. 301. DEFINITIONS. 

‘‘In this title: 

‘‘(1) COUNTY FUNDS.—The term ‘county funds’ means all 

funds an eligible county elects under section 102(d) to reserve 

for expenditure in accordance with this title. 

‘‘(2) PARTICIPATING COUNTY.—The term ‘participating county’

means an eligible county that elects under section 102(d) to expend a portion of the Federal funds received under section 102 

in accordance with this title. 

‘‘SEC. 302. USE. 

‘‘(a) AUTHORIZED USES.—A participating county, including any 

applicable agencies of the participating county, shall use county 

funds, in accordance with this title, only—

‘‘(1) to carry out activities under the Firewise Communities 

program to provide to homeowners in fire-sensitive ecosystems 

education on, and assistance with implementing, techniques in 

home siting, home construction, and home landscaping that 

can increase the protection of people and property from 

wildfires; 

‘‘(2) to reimburse the participating county for search and rescue and other emergency services, including firefighting, that 

are—

‘‘(A) performed on Federal land after the date on which 

the use was approved under subsection (b); 

‘‘(B) paid for by the participating county; and 

‘‘(3) to develop community wildfire protection plans in coordination with the appropriate Secretary concerned. 


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‘‘(b) PROPOSALS.—A participating county shall use county funds 

for a use described in subsection (a) only after a 45-day public comment period, at the beginning of which the participating county 

shall—

‘‘(1) publish in any publications of local record a proposal 

that describes the proposed use of the county funds; and 

‘‘(2) submit the proposal to any resource advisory committee 

established under section 205 for the participating county. 

‘‘SEC. 303. CERTIFICATION. 

‘‘(a) IN GENERAL.—Not later than February 1 of the year after 

the year in which any county funds were expended by a participating county, the appropriate official of the participating county 

shall submit to the Secretary concerned a certification that the 

county funds expended in the applicable year have been used for 

the uses authorized under section 302(a), including a description of 

the amounts expended and the uses for which the amounts were 

expended. 

‘‘(b) REVIEW.—The Secretary concerned shall review the certifications submitted under subsection (a) as the Secretary concerned 

determines to be appropriate. 

‘‘SEC. 304. TERMINATION OF AUTHORITY. 

‘‘(a) IN GENERAL.—The authority to initiate projects under this 

title terminates on September 30, 2011. 

‘‘(b) AVAILABILITY.—Any county funds not obligated by September 

30, 2012, shall be returned to the Treasury of the United States. 

‘‘TITLE IV—MISCELLANEOUS PROVISIONS 

‘‘SEC. 401. REGULATIONS. 

‘‘The Secretary of Agriculture and the Secretary of the Interior 

shall issue regulations to carry out the purposes of this Act. 

‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 

‘‘There are authorized to be appropriated such sums as are necessary to carry out this Act for each of fiscal years 2008 through 

2011. 

‘‘SEC. 403. TREATMENT OF FUNDS AND REVENUES. 

‘‘(a) RELATION TO OTHER APPROPRIATIONS.—Funds made available under section 402 and funds made available to a Secretary 

concerned under section 206 shall be in addition to any other annual appropriations for the Forest Service and the Bureau of Land 

Management. 

‘‘(b) DEPOSIT OF REVENUES AND OTHER FUNDS.—All revenues 

generated from projects pursuant to title II, including any interest 

accrued from the revenues, shall be deposited in the Treasury of 

the United States.’’. 

(b) FOREST RECEIPT PAYMENTS TO ELIGIBLE STATES AND COUNTIES.—

(1) ACT OF MAY 23, 1908.—The sixth paragraph under the 

heading ‘‘FOREST SERVICE’’ in the Act of May 23, 1908 (16 

U.S.C. 500) is amended in the first sentence by striking ‘‘twenty-five percentum’’ and all that follows through ‘‘shall be paid’’

and inserting the following: ‘‘an amount equal to the annual 

average of 25 percent of all amounts received for the applicable 


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fiscal year and each of the preceding 6 fiscal years from each 

national forest shall be paid’’. (2) WEEKS LAW.—Section 13 of the Act of March 1, 1911 

(commonly known as the ‘‘Weeks Law’’) (16 U.S.C. 500) is 

amended in the first sentence by striking ‘‘twenty-five 

percentum’’ and all that follows through ‘‘shall be paid’’ and inserting the following: ‘‘an amount equal to the annual average 

of 25 percent of all amounts received for the applicable fiscal 

year and each of the preceding 6 fiscal years from each national forest shall be paid’’. (c) PAYMENTS IN LIEU OF TAXES.— (1) IN GENERAL.—Section 6906 of title 31, United States 

Code, is amended to read as follows: 

‘‘§ 6906. Funding 

‘‘For fiscal year 2009— ‘‘(1) each county or other eligible unit of local government 

shall be entitled to payment under this chapter; and ‘‘(2) sums shall be made available to the Secretary of the Interior for obligation or expenditure in accordance with this 

chapter.’’. (2) CONFORMING AMENDMENT.—The table of sections for 

chapter 69 of title 31, United States Code, is amended by striking the item relating to section 6906 and inserting the following: ‘‘6906. Funding.’’. 

(3) BUDGET SCOREKEEPING.— (A) IN GENERAL.—Notwithstanding the Budget 

Scorekeeping Guidelines and the accompanying list of programs and accounts set forth in the joint explanatory 

statement of the committee of conference accompanying 

Conference Report 105–217, the amendment made by 

paragraph (1) shall be treated in the baseline for purposes 

of section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907) (as in effect before 

September 30, 2002), by the Chairpersons of the Committee on the Budget of the House of Representatives and 

the Committee on the Budget of the Senate, as appropriate, for purposes of budget enforcement in the House of 

Representatives and the Senate, and under the Congressional Budget Act of 1974 (2 U.S.C. 601 et seq.) as if Payment in Lieu of Taxes (14–1114–0–1–806) were an account 

designated as Appropriated Entitlements and Mandatories 

for Fiscal Year 1997 in the joint explanatory statement of 

the committee of conference accompanying Conference Report 105–217. 

(B) EFFECTIVE DATE.—This paragraph shall— (i) be effective beginning on the date of enactment of 

this Act; and 

(ii) remain in effect for any fiscal year for which the 

entitlement in section 6906 of title 31, United States 

Code (as amended by paragraph (1)), applies. 

In lieu of the matter proposed to be inserted for the title of the 

bill, H.R. 6, insert the following: ‘‘An Act to move the United States 

toward greater energy independence and security, to increase the 


hmoore on PRODPC68 with HMRPT
407 

production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote 

research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes.’’. 

Æ 


hmoore on PRODPC68 with HMRPT