```

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2747 Introduced in Senate (IS)]

109th CONGRESS
  2d Session
                                S. 2747

To enhance energy efficiency and conserve oil and natural gas, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2006

 Mr. Bingaman (for himself, Mr. Bayh, Mr. Coleman, Mr. Lieberman, Mr. 
    Chafee, Ms. Cantwell, Ms. Collins, Mr. Salazar, Mr. Kerry, Mrs. 
  Clinton, and Mr. Nelson of Florida) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 
To enhance energy efficiency and conserve oil and natural gas, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Enhanced Energy 
Security Act of 2006''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
          TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
         TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

Sec. 201. Federal fleet conservation requirements.
Sec. 202. Assistance for State programs to retire fuel-inefficient 
                            motor vehicles.
Sec. 203. Assistance to States to reduce school bus idling.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Loan guarantees for fuel-efficient automobile manufacturer 
                            and suppliers.
Sec. 207. Funding for alternative infrastructure for the distribution 
                            of transportation fuels.
Sec. 208. Deployment of new technologies to reduce oil use in 
                            transportation.
Sec. 209. Production incentives for cellulosic biofuels.
    TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

Sec. 301. Renewable portfolio standard.
Sec. 302. Federal requirement to purchase electricity generated by 
                            renewable energy.
              TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

Sec. 401. Energy savings performance contracts.
Sec. 402. Deployment of new technologies for high-efficiency consumer 
                            products.
Sec. 403. National media campaign to decrease oil and natural gas 
                            consumption.
Sec. 404. Energy efficiency resource programs.
                TITLE V--ASSISTANCE TO ENERGY CONSUMERS

Sec. 501. Energy emergency disaster relief loans to small business and 
                            agricultural producers.
Sec. 502. Efficient and safe equipment replacement program for 
                            weatherization purposes.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

          TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

    Not later than 270 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget (referred to in 
this title as the ``Director'') shall publish in the Federal Register 
an action plan consisting of--
            (1) a list of requirements proposed or to be proposed 
        pursuant to section 102 that are authorized to be issued under 
        law in effect on the date of enactment of this Act, and this 
        Act, that will be sufficient, when taken together, to save from 
        the baseline determined under section 105--
                    (A) 2,500,000 barrels of oil per day on average 
                during calendar year 2016;
                    (B) 7,000,000 barrels of oil per day on average 
                during calendar year 2026; and
                    (C) 10,000,000 barrels per day on average during 
                calendar year 2031; and
            (2) a Federal Government-wide analysis of--
                    (A) the expected oil savings from the baseline to 
                be accomplished by each requirement; and
                    (B) whether all such requirements, taken together, 
                will achieve the oil savings specified in this section.

SEC. 102. STANDARDS AND REQUIREMENTS.

    (a) In General.--On or before the date of publication of the action 
plan under section 101, the Secretary of Energy, the Secretary of 
Transportation, the Secretary of Defense, the Secretary of Agriculture, 
the Administrator of the Environmental Protection Agency, and the head 
of any other agency the President determines appropriate shall each 
propose, or issue a notice of intent to propose, regulations 
establishing each standard or other requirement listed in the action 
plan that is under the jurisdiction of the respective agency using 
authorities described in subsection (b).
    (b) Authorities.--The head of each agency described in subsection 
(a) shall use to carry out this section--
            (1) any authority in existence on the date of enactment of 
        this Act (including regulations); and
            (2) any new authority provided under this Act (including an 
        amendment made by this Act).
    (c) Final Regulations.--Not later than 18 months after the date of 
enactment of this Act, the head of each agency described in subsection 
(a) shall promulgate final versions of the regulations required under 
this section.
    (d) Agency Analyses.--Each proposed and final regulation 
promulgated under this section shall--
            (1) be designed to achieve at least the oil savings 
        resulting from the regulation under the action plan published 
        under section 101; and
            (2) be accompanied by an analysis by the applicable agency 
        describing the manner in which the regulation will promote the 
        achievement of the oil savings from the baseline determined 
        under section 105.

SEC. 103. INITIAL EVALUATION.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Director shall publish in the Federal Register a 
Federal Government-wide analysis of the oil savings achieved from the 
baseline established under section 105.
    (b) Inadequate Oil Savings.--If the oil savings are less than the 
targets established under section 101, simultaneously with the analysis 
required under subsection (a)--
            (1) the Director shall publish a revised action plan that 
        is adequate to achieve the targets; and
            (2) the Secretary of Energy, the Secretary of 
        Transportation, and the Administrator shall propose new or 
        revised regulations under subsections (a), (b), and (c), 
        respectively, of section 102.
    (c) Final Regulations.--Not later than 180 days after the date on 
which regulations are proposed under subsection (b)(2), the Secretary 
of Energy, the Secretary of Transportation, and the Administrator shall 
promulgate final versions of those regulations.

SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

    (a) Review.--Not later than January 1, 2011, and every 3 years 
thereafter, the Director shall submit to Congress, and publish, a 
report that--
            (1) evaluates the progress achieved in implementing the oil 
        savings targets established under section 101;
            (2) analyzes the expected oil savings under the standards 
        and requirements established under this Act and the amendments 
        made by this Act; and
            (3)(A) analyzes the potential to achieve oil savings that 
        are in addition to the savings required by section 101; and
            (B) if the President determines that it is in the national 
        interest, establishes a higher oil savings target for calendar 
        year 2017 or any subsequent calendar year.
    (b) Inadequate Oil Savings.--If the oil savings are less than the 
targets established under section 101, simultaneously with the report 
required under subsection (a)--
            (1) the Director shall publish a revised action plan that 
        is adequate to achieve the targets; and
            (2) the Secretary of Energy, the Secretary of 
        Transportation, and the Administrator shall propose new or 
        revised regulations under subsections (a), (b), and (c), 
        respectively, of section 102.
    (c) Final Regulations.--Not later than 180 days after the date on 
which regulations are proposed under subsection (b)(2), the Secretary 
of Energy, the Secretary of Transportation, and the Administrator shall 
promulgate final versions of those regulations.

SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

    In performing the analyses and promulgating proposed or final 
regulations to establish standards and other requirements necessary to 
achieve the oil savings required by this title, the Secretary of 
Energy, the Secretary of Transportation, the Secretary of Defense, the 
Secretary of Agriculture, the Administrator of the Environmental 
Protection Agency, and the head of any other agency the President 
determines to be appropriate shall--
            (1) determine oil savings as the projected reduction in oil 
        consumption from the baseline established by the reference case 
        contained in the report of the Energy Information 
        Administration entitled ``Annual Energy Outlook 2005'';
            (2) determine the oil savings projections required on an 
        annual basis for each of calendar years 2009 through 2026; and
            (3) account for any overlap among the standards and other 
        requirements to ensure that the projected oil savings from all 
        the promulgated standards and requirements, taken together, are 
        as accurate as practicable.

         TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

SEC. 201. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    (a) In General.--Part J of title IV 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.--The Secretary shall issue regulations 
        for Federal fleets subject to section 400AA requiring that not 
        later than October 1, 2009, each Federal agency achieve at 
        least a 20 percent reduction in petroleum consumption, as 
        calculated from the baseline established by the Secretary for 
        fiscal year 1999.
            ``(2) Plan.--
                    ``(A) Requirement.--The regulations shall require 
                each Federal agency to develop a plan to meet the 
                required petroleum reduction level.
                    ``(B) Measures.--The plan may allow an agency to 
                meet the required petroleum reduction level through--
                            ``(i) the use of alternative fuels;
                            ``(ii) the acquisition of vehicles with 
                        higher fuel economy, including hybrid vehicles;
                            ``(iii) the substitution of cars for light 
                        trucks;
                            ``(iv) an increase in vehicle load factors;
                            ``(v) a decrease in vehicle miles traveled;
                            ``(vi) a decrease in fleet size; and
                            ``(vii) other measures.
                    ``(C) Replacement tires.--The regulations shall 
                include a requirement that each Federal agency purchase 
                energy-efficient replacement tires for the respective 
                fleet vehicles of the agency.
    ``(b) Federal Employee Incentive Programs for Reducing Petroleum 
Consumption.--
            ``(1) In general.--Each Federal agency shall actively 
        promote incentive programs that encourage Federal employees and 
        contractors to reduce petroleum through the use of practices 
        such as--
                    ``(A) telecommuting;
                    ``(B) public transit;
                    ``(C) carpooling; and
                    ``(D) bicycling.
            ``(2) Monitoring and support for incentive programs.--The 
        Administrator of the General Services Administration, the 
        Director of the Office of Personnel Management, and the 
        Secretary of the Department of Energy shall monitor and provide 
        appropriate support to agency programs described in paragraph 
        (1).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by 
adding at the end of the items relating to part J of title III the 
following:

``Sec. 400FF. Federal fleet conservation requirements.''.

SEC. 202. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-INEFFICIENT 
              MOTOR VEHICLES.

    (a) Definitions.--In this section:
            (1) Fuel-efficient automobile.--The term ``fuel-efficient 
        automobile'' means a passenger automobile or a light-duty truck 
        that has a fuel economy rating that is 40 percent greater than 
        the average fuel economy standard prescribed pursuant to 
        section 32902 of title 49, United States Code, or other law, 
        applicable to the passenger automobile or light-duty truck.
            (2) Fuel-inefficient automobiles.--The term ``fuel-
        inefficient automobile'' means a passenger automobile or a 
        light-duty truck manufactured in a model year more than 15 
        years before the fiscal year in which appropriations are made 
        under subsection (f) that, at the time of manufacture, had a 
        fuel economy rating that was equal to or less than 20 miles per 
        gallon.
            (3) Light-duty truck.--
                    (A) In general.--The term ``light-duty truck'' 
                means an automobile that is not a passenger automobile.
                    (B) Inclusions.--The term ``light-duty truck'' 
                includes a pickup truck, a van, or a four-wheel-drive 
                general utility vehicle, as those terms are defined in 
                section 600.002-85 of title 40, Code of Federal 
                Regulations.
            (4) State.--The term ``State'' means any of the several 
        States and the District of Columbia.
    (b) Establishment.--The Secretary shall establish a program, to be 
known as the ``National Motor Vehicle Efficiency Improvement Program,'' 
under which the Secretary shall provide grants to States to operate 
voluntary programs to offer owners of fuel inefficient automobiles 
financial incentives to replace the automobiles with fuel efficient 
automobiles.
    (c) Eligibility Criteria.--The Secretary shall approve a State plan 
and provide the funds made available under subsection (f), if the State 
plan--
            (1) except as provided in paragraph (8), requires that all 
        passenger automobiles and light-duty trucks turned in be 
        scrapped, after allowing a period of time for the recovery of 
        spare parts;
            (2) requires that all passenger automobiles and light-duty 
        trucks turned in be registered in the State in order to be 
        eligible;
            (3) requires that all passenger automobiles and light-duty 
        trucks turned in be operational at the time that the passenger 
        automobiles and light-duty trucks are turned in;
            (4) restricts automobile owners (except not-for-profit 
        organizations) from turning in more than 1 passenger automobile 
        and 1 light-duty truck during a 1-year period;
            (5) provides an appropriate payment to the person recycling 
        the scrapped passenger automobile or light-duty truck for each 
        turned-in passenger automobile or light-duty truck;
            (6) subject to subsection (d)(2), provides a minimum 
        payment to the automobile owner for each passenger automobile 
        and light-duty truck turned in; and
            (7) provides appropriate exceptions to the scrappage 
        requirement for vehicles that qualify as antique cars under 
        State law.
    (d) State Plan.--
            (1) In general.--To be eligible to receive funds under the 
        program, the Governor of a State shall submit to the Secretary 
        a plan to carry out a program under this section in that State.
            (2) Additional state credit.--In addition to the payment 
        under subsection (c)(6), the State plan may provide a credit 
        that may be redeemed by the owner of the replaced fuel-
        inefficient automobile at the time of purchase of the new fuel-
        efficient automobile.
    (e) Allocation Formula.--The amounts appropriated pursuant to 
subsection (f) shall be allocated among the States on the basis of the 
number of registered motor vehicles in each State at the time that the 
Secretary needs to compute shares under this subsection.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
this section, to remain available until expended.

SEC. 203. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.

    (a) Statement of Policy.--Congress encourages each local 
educational agency (as defined in section 9101(26) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives 
Federal funds under the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of 
school bus idling at schools while picking up and unloading students.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy, working in coordination with 
the Secretary of Education, $5,000,000 for each of fiscal years 2007 
through 2012 for use in educating States and local education agencies 
about--
            (1) benefits of reducing school bus idling; and
            (2) ways in which school bus idling may be reduced.

SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to enable and promote, in partnership with industry, 
        comprehensive development, demonstration, and commercialization 
        of a wide range of electric drive components, systems, and 
        vehicles using diverse electric drive transportation 
        technologies;
            (2) to make critical public investments to help private 
        industry, institutions of higher education, National 
        Laboratories, and research institutions to expand innovation, 
        industrial growth, and jobs in the United States;
            (3) to expand the availability of the existing electric 
        infrastructure for fueling light duty transportation and other 
        on-road and nonroad vehicles that are using petroleum and are 
        mobile sources of emissions--
                    (A) including the more than 3,000,000 reported 
                units (such as electric forklifts, golf carts, and 
                similar nonroad vehicles) in use on the date of 
                enactment of this Act; and
                    (B) with the goal of enhancing the energy security 
                of the United States, reduce dependence on imported 
                oil, and reduce emissions through the expansion of grid 
                supported mobility;
            (4) to accelerate the widespread commercialization of all 
        types of electric drive vehicle technology into all sizes and 
        applications of vehicles, including commercialization of plug-
        in hybrid electric vehicles and plug-in hybrid fuel cell 
        vehicles; and
            (5) to improve the energy efficiency of and reduce the 
        petroleum use in transportation.
    (b) Definitions.--In this section:
            (1) Battery.--The term ``battery'' means an energy storage 
        device used in an on-road or nonroad vehicle powered in whole 
        or in part using an off-board or on-board source of 
        electricity.
            (2) Electric drive transportation technology.--The term 
        ``electric drive transportation technology'' means--
                    (A) vehicles that use an electric motor for all or 
                part of their motive power and that may or may not use 
                off-board electricity, including battery electric 
                vehicles, fuel cell vehicles, engine dominant hybrid 
                electric vehicles, plug-in hybrid electric vehicles, 
                plug-in hybrid fuel cell vehicles, and electric rail; 
                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 corded electric 
                equipment linked to transportation or mobile sources of 
                air pollution.
            (3) Engine dominant hybrid electric vehicle.--The term 
        ``engine dominant hybrid electric vehicle'' means an on-road or 
        nonroad vehicle that--
                    (A) is propelled by an internal combustion engine 
                or heat engine using--
                            (i) any combustible fuel;
                            (ii) an on-board, rechargeable storage 
                        device; and
                    (B) has no means of using an off-board source of 
                electricity.
            (4) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means an on-road or nonroad vehicle that uses a fuel cell (as 
        defined in section 3 of the Spark M. Matsunaga Hydrogen 
        Research, Development, and Demonstration Act of 1990).
            (5) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
        meaning given the term in section 216 of the Clean Air Act (42 
        U.S.C. 7550).
            (6) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means an on-road or nonroad vehicle 
        that is propelled by an internal combustion engine or heat 
        engine using--
                    (A) any combustible fuel;
                    (B) an on-board, rechargeable storage device; and
                    (C) a means of using an off-board source of 
                electricity.
            (7) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
        hybrid fuel cell vehicle'' means a fuel cell vehicle with a 
        battery powered by an off-board source of electricity.
    (c) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for electric 
drive transportation technology, including--
            (1) high capacity, high efficiency batteries;
            (2) high efficiency on-board and off-board charging 
        components;
            (3) high power drive train systems for passenger and 
        commercial vehicles and for nonroad equipment;
            (4) control system development and power train development 
        and integration for plug-in hybrid electric vehicles, plug-in 
        hybrid fuel cell vehicles, and engine dominant hybrid electric 
        vehicles, including--
                    (A) development of efficient cooling systems;
                    (B) analysis and development of control systems 
                that minimize the emissions profile when clean diesel 
                engines are part of a plug-in hybrid drive system; and
                    (C) development of different control systems that 
                optimize for different goals, including--
                            (i) battery life;
                            (ii) reduction of petroleum consumption; 
                        and
                            (iii) green house gas reduction;
            (5) nanomaterial technology applied to both battery and 
        fuel cell systems;
            (6) large-scale demonstrations, testing, and evaluation of 
        plug-in hybrid electric vehicles in different applications with 
        different batteries and control systems, including--
                    (A) military applications;
                    (B) mass market passenger and light-duty truck 
                applications;
                    (C) private fleet applications; and
                    (D) medium- and heavy-duty applications;
            (7) a nationwide education strategy for electric drive 
        transportation technologies providing secondary and high school 
        teaching materials and support for university education focused 
        on electric drive system and component engineering;
            (8) development, in consultation with the Administrator of 
        the Environmental Protection Agency, of procedures for testing 
        and certification of criteria pollutants, fuel economy, and 
        petroleum use for light-, medium-, and heavy-duty vehicle 
        applications, including consideration of--
                    (A) the vehicle and fuel as a system, not just an 
                engine; and
                    (B) nightly off-board charging; and
            (9) advancement of battery and corded electric 
        transportation technologies in mobile source applications by--
                    (A) improvement in battery, drive train, and 
                control system technologies; and
                    (B) working with industry and the Administrator of 
                the Environmental Protection Agency to--
                            (i) understand and inventory markets; and
                            (ii) identify and implement methods of 
                        removing barriers for existing and emerging 
                        applications.
    (d) Goals.--The goals of the electric drive transportation 
technology program established under subsection (c) shall be to 
develop, in partnership with industry and institutions of higher 
education, projects that focus on--
            (1) innovative electric drive technology developed in the 
        United States;
            (2) growth of employment in the United States in electric 
        drive design and manufacturing;
            (3) validation of the plug-in hybrid potential through 
        fleet demonstrations; and
            (4) acceleration of fuel cell commercialization through 
        comprehensive development and commercialization of the electric 
        drive technology systems that are the foundational technology 
        of the fuel cell vehicle system.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $300,000,000 for each of fiscal 
years 2007 through 2012.

SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall establish a research and development 
program to determine ways in which--
            (1) the weight of vehicles may be reduced to improve fuel 
        efficiency without compromising passenger safety; and
            (2) the cost of lightweight materials (such as steel alloys 
        and carbon fibers) required for the construction of lighter-
        weight vehicles may be reduced.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2007 through 2012.

SEC. 206. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE MANUFACTURER 
              AND SUPPLIERS.

    (a) In General.--Section 712(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16062(a)) is amended in the second sentence by striking 
``grants to automobile manufacturers'' and inserting ``grants and loan 
guarantees under section 1703 to automobile manufacturers and 
suppliers''.
    (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 such vehicles, including hybrid 
        and advanced diesel vehicles.''.

SEC. 207. FUNDING FOR ALTERNATIVE INFRASTRUCTURE FOR THE DISTRIBUTION 
              OF TRANSPORTATION FUELS.

    (a) In General.--There is established in the Treasury of the United 
States a trust fund, to be known as the ``Alternative Fueling 
Infrastructure Trust Fund'' (referred to in this section as the ``Trust 
Fund''), consisting of such amounts as are deposited into the Trust 
Fund under subsection (b) and any interest earned on investment of 
amounts in the Trust Fund.
    (b) Penalties.--The Secretary of Transportation shall remit 90 
percent of the amount collected in civil penalties under section 32912 
of title 49, United States Code, to the Trust Fund.
    (c) Grant Program.--
            (1) In general.--The Secretary of Energy shall obligate 
        such sums as are available in the Trust Fund to establish a 
        grant program to increase the number of locations at which 
        consumers may purchase alternative transportation fuels.
            (2) Administration.--
                    (A) In general.--The Secretary may award grants 
                under this subsection to--
                            (i) individual fueling stations; and
                            (ii) corporations (including nonprofit 
                        corporations) with demonstrated experience in 
                        the administration of grant funding for the 
                        purpose of alternative fueling infrastructure.
                    (B) Maximum amount of grants.--A grant provided 
                under this subsection may not exceed--
                            (i) $150,000 for each site of an individual 
                        fueling station; and
                            (ii) $500,000 for each corporation 
                        (including a nonprofit corporation).
                    (C) Prioritization.--The Secretary shall prioritize 
                the provision of grants under this subsection to 
                recognized nonprofit corporations that have proven 
                experience and demonstrated technical expertise in the 
                establishment of alternative fueling infrastructure, as 
                determined by the Secretary.
                    (D) Administrative expenses.--Not more than 10 
                percent of the funds provided in any grant may be used 
                by the recipient of the grant to pay administrative 
                expenses.
                    (E) Number of vehicles.--In providing grants under 
                this subsection, the Secretary shall consider the 
                number of vehicles in service capable of using a 
                specific type of alternative fuel.
                    (F) Match.--Grant recipients shall provide a non-
                Federal match of not less than $1 for every $3 of grant 
                funds received under this subsection.
                    (G) Locations.--Each grant recipient shall select 
                the locations for each alternative fuel station to be 
                constructed with grant funds received under this 
                subsection on a formal, open, and competitive basis.
                    (H) Use of information in selection of 
                recipients.--In selecting grant recipients under this 
                subsection, the Secretary may consider--
                            (i) public demand for each alternative fuel 
                        in a particular county based on State 
                        registration records indicating the number of 
                        vehicles that may be operated using alternative 
                        fuel; and
                            (ii) the opportunity to create or expand 
                        corridors of alternative fuel stations along 
                        interstates or highways.
            (3) Use of grant funds.--Grant funds received under this 
        subsection may be used to--
                    (A) construct new facilities to dispense 
                alternative fuels;
                    (B) purchase equipment to upgrade, expand, or 
                otherwise improve existing alternative fuel facilities; 
                or
                    (C) purchase equipment or pay for specific turnkey 
                fueling services by alternative fuel providers.
            (4) Facilities.--Facilities constructed or upgraded with 
        grant funds under this subsection shall--
                    (A) provide alternative fuel available to the 
                public for a period not less than 4 years;
                    (B) establish a marketing plan to advance the sale 
                and use of alternative fuels;
                    (C) prominently display the price of alternative 
                fuel on the marquee and in the station;
                    (D) provide point of sale materials on alternative 
                fuel;
                    (E) clearly label the dispenser with consistent 
                materials;
                    (F) price the alternative fuel at the same margin 
                that is received for unleaded gasoline; and
                    (G) support and use all available tax incentives to 
                reduce the cost of the alternative fuel to the lowest 
                practicable retail price.
            (5) Opening of stations.--
                    (A) In general.--Not later than the date on which 
                each alternative fuel station begins to offer 
                alternative fuel to the public, the grant recipient 
                that used grant funds to construct the station shall 
                notify the Secretary of the opening.
                    (B) Website.--The Secretary shall add each new 
                alternative fuel station to the alternative fuel 
                station locator on the website of the Department of 
                Energy when the Secretary receives notification under 
                this subsection.
            (6) Reports.--Not later than 180 days after the receipt of 
        a grant award under this subsection, and every 180 days 
        thereafter, each grant recipient shall submit a report to the 
        Secretary that describes--
                    (A) the status of each alternative fuel station 
                constructed with grant funds received under this 
                subsection;
                    (B) the quantity of alternative fuel dispensed at 
                each station during the preceding 180-day period; and
                    (C) the average price per gallon of the alternative 
                fuel sold at each station during the preceding 180-day 
                period.

SEC. 208. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN 
              TRANSPORTATION.

    (a) Fuel From Cellulosic Biomass.--
            (1) In general.--The Secretary shall provide deployment 
        incentives under this subsection to encourage a variety of 
        projects to produce transportation fuel from cellulosic 
        biomass, relying on different feedstocks in different regions 
        of the United States.
            (2) Project eligibility.--Incentives under this subsection 
        shall be provided on a competitive basis to projects that 
        produce fuel that--
                    (A) meet United States fuel and emission 
                specifications;
                    (B) help diversify domestic transportation energy 
                supplies; and
                    (C) improve or maintain air, water, soil, and 
                habitat quality.
            (3) Incentives.--Incentives under this subsection may 
        consist of--
                    (A) loan guarantees under section 1510 of the 
                Energy Policy Act of 2005 (42 U.S.C. 16501), subject to 
                section 1702 of that Act (22 U.S.C. 16512), for the 
                construction of production facilities and supporting 
                infrastructure; or
                    (B) production payments through a reverse auction 
                in accordance with paragraph (4).
            (4) Reverse auction.--
                    (A) In general.--In providing incentives under this 
                subsection, the Secretary shall--
                            (i) issue regulations under which producers 
                        of fuel from cellulosic biomass may bid for 
                        production payments under paragraph (3)(B); and
                            (ii) solicit bids from producers of 
                        different classes of transportation fuel, as 
                        the Secretary determines to be appropriate.
                    (B) Requirement.--The rules under subparagraph (A) 
                shall require that incentives be provided to the 
                producers that submit the lowest bid (in terms of cents 
                per gallon) for each class of transportation fuel from 
                which the Secretary solicits a bid.
    (b) Advanced Technology Vehicles Manufacturing Incentive Program.--
            (1) Definitions.--In this subsection:
                    (A) Adjusted fuel economy.--The term ``adjusted 
                fuel economy'' means the average fuel economy of a 
                manufacturer for all light duty motor vehicles produced 
                by the manufacturer, adjusted such that the fuel 
                economy of each vehicle that qualifies for a credit 
                shall be considered to be equal to the average fuel 
                economy for the weight class of the vehicle for model 
                year 2002.
                    (B) Advanced lean burn technology motor vehicle.--
                The term ``advanced lean burn technology motor 
                vehicle'' means a passenger automobile or a light truck 
                with an internal combustion engine that--
                            (i) is designed to operate primarily using 
                        more air than is necessary for complete 
                        combustion of the fuel;
                            (ii) incorporates direct injection; and
                            (iii) achieves at least 125 percent of the 
                        city fuel economy of vehicles in the same size 
                        class as the vehicle for model year 2002.
                    (C) Advanced technology vehicle.--The term 
                ``advanced technology vehicle'' means a light duty 
                motor vehicle that--
                            (i) is a hybrid motor vehicle or an 
                        advanced lean burn technology motor vehicle; 
                        and
                            (ii) meets--
                                    (I) 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;
                                    (II) any new emission standard for 
                                fine particulate matter prescribed by 
                                the Administrator under that Act (42 
                                U.S.C. 7401 et seq.); and
                                    (III) at least 125 percent of the 
                                base year city fuel economy for the 
                                weight class of the vehicle.
                    (D) Engineering integration costs.--The term 
                ``engineering integration costs'' includes the cost of 
                engineering tasks relating to--
                            (i) incorporating qualifying components 
                        into the design of advanced technology 
                        vehicles; and
                            (ii) designing new tooling and equipment 
                        for production facilities that produce 
                        qualifying components or advanced technology 
                        vehicles.
                    (E) Hybrid motor vehicle.--The term ``hybrid motor 
                vehicle'' means a motor vehicle that draws propulsion 
                energy from onboard sources of stored energy that are--
                            (i) an internal combustion or heat engine 
                        using combustible fuel; and
                            (ii) a rechargeable energy storage system.
                    (F) Qualifying components.--The term ``qualifying 
                components'' means components that the Secretary 
                determines to be--
                            (i) specially designed for advanced 
                        technology vehicles; and
                            (ii) installed for the purpose of meeting 
                        the performance requirements of advanced 
                        technology vehicles.
            (2) Manufacturer facility conversion awards.--The Secretary 
        shall provide facility conversion funding awards under this 
        subsection to automobile manufacturers and component suppliers 
        to pay not more than 30 percent of the cost of--
                    (A) reequipping or expanding an existing 
                manufacturing facility in the United States to 
                produce--
                            (i) qualifying advanced technology 
                        vehicles; or
                            (ii) qualifying components; and
                    (B) engineering integration performed in the United 
                States of qualifying vehicles and qualifying 
                components.
            (3) Period of availability.--An award under paragraph (2) 
        shall apply to--
                    (A) facilities and equipment placed in service 
                before December 30, 2017; and
                    (B) engineering integration costs incurred during 
                the period beginning on the date of enactment of this 
                Act and ending on December 30, 2017.
            (4) Improvement.--The Secretary shall issue regulations 
        that require that, in order for an automobile manufacturer to 
        be eligible for an award under this subsection 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 motor vehicles of the manufacturer for model 
        year 2002.

SEC. 209. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

    Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C. 
16251(f)) is amended by striking ``$250,000,000'' and inserting 
``$200,000,000 for each of fiscal years 2007 through 2011''.

    TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

SEC. 301. RENEWABLE PORTFOLIO STANDARD.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
the following:

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy Requirement.--
            ``(1) In general.--Each electric utility that sells 
        electricity to electric consumers shall obtain a percentage of 
        the base amount of electricity it sells to electric consumers 
        in any calendar year from new renewable energy or existing 
        renewable energy. The percentage obtained in a calendar year 
        shall not be less than the amount specified in the following 
        table:

 
 
 
``Calendar year:                    Minimum annual percentage:
  2008 through 2011...............  2.55
  2012 through 2015...............  5.05
  2016 through 2019...............  7.55
  2020 through 2030...............  10.0

            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) generating electric energy using new 
                renewable energy or existing renewable energy;
                    ``(B) purchasing electric energy generated by new 
                renewable energy or existing renewable energy;
                    ``(C) purchasing renewable energy credits issued 
                under subsection (b); or
                    ``(D) a combination of the foregoing.
    ``(b) Renewable Energy Credit Trading Program.--
            ``(1) In general.--Not later than January 1, 2007, the 
        Secretary shall establish a renewable energy credit trading 
        program to permit an electric utility that does not generate or 
        purchase enough electric energy from renewable energy to meet 
        its obligations under subsection (a)(1) to satisfy such 
        requirements by purchasing sufficient renewable energy credits.
            ``(2) Administration.--As part of the program, the 
        Secretary shall--
                    ``(A) issue renewable energy credits to generators 
                of electric energy from new renewable energy;
                    ``(B) sell renewable energy credits to electric 
                utilities at the rate of 1.5 cents per kilowatt-hour 
                (as adjusted for inflation under subsection (g));
                    ``(C) ensure that a kilowatt hour, including the 
                associated renewable energy credit, shall be used only 
                once for purposes of compliance with this section; and
                    ``(D) allow double credits for generation from 
                facilities on Indian land, and triple credits for 
                generation from small renewable distributed generators 
                (meaning those no larger than 1 megawatt).
            ``(3) Duration.--Credits under paragraph (2)(A) may only be 
        used for compliance with this section for 3 years from the date 
        issued.
            ``(4) Transfers.--An electric utility that holds credits in 
        excess of the amount needed to comply with subsection (a) may 
        transfer such credits to another electric utility in the same 
        utility holding company system.
            ``(5) Eastern interconnect.--In the case of a retail 
        electric supplier that is a member of a power pool located in 
        the Eastern Interconnect and that is subject to a State 
        renewable portfolio standard program that provides for 
        compliance primarily through the acquisition of certificates or 
        credits in lieu of the direct acquisition of renewable power, 
        the Secretary shall issue renewable energy credits in an amount 
        that corresponds to the kilowatt-hour obligation represented by 
        the State certificates and credits issued pursuant to the State 
        program to the extent the State certificates and credits are 
        associated with renewable resources eligible under this 
        section.
    ``(c) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the renewable energy requirements of subsection (a) shall 
        be subject to a civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be determined by multiplying the number of kilowatt-hours 
        of electric energy sold to electric consumers in violation of 
        subsection (a) by the greater of 1.5 cents (adjusted for 
        inflation under subsection (g)) or 200 percent of the average 
        market value of renewable energy credits during the year in 
        which the violation occurred.
            ``(3) Mitigation or waiver.--The Secretary may mitigate or 
        waive a civil penalty under this subsection if the electric 
        utility was unable to comply with subsection (a) for reasons 
        outside of the reasonable control of the utility. The Secretary 
        shall reduce the amount of any penalty determined under 
        paragraph (2) by an amount paid by the electric utility to a 
        State for failure to comply with the requirement of a State 
        renewable energy program if the State requirement is greater 
        than the applicable requirement of subsection (a).
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(d) State Renewable Energy Account Program.--
            ``(1) In general.--The Secretary shall establish, not later 
        than December 31, 2008, a State renewable energy account 
        program.
            ``(2) Deposits.--All money collected by the Secretary from 
        the sale of renewable energy credits and the assessment of 
        civil penalties under this section shall be deposited into the 
        renewable energy account established pursuant to this 
        subsection. The State renewable energy account shall be held by 
        the Secretary and shall not be transferred to the Treasury 
        Department.
            ``(3) Use.--Proceeds deposited in the State renewable 
        energy account shall be used by the Secretary, subject to 
        appropriations, for a program to provide grants to the State 
        agency responsible for developing State energy conservation 
        plans under section 362 of the Energy Policy and Conservation 
        Act (42 U.S.C. 6322) for the purposes of promoting renewable 
        energy production, including programs that promote technologies 
        that reduce the use of electricity at customer sites such as 
        solar water heating.
            ``(4) Administration.--The Secretary may issue guidelines 
        and criteria for grants awarded under this subsection. State 
        energy offices receiving grants under this section shall 
        maintain such records and evidence of compliance as the 
        Secretary may require.
            ``(5) Preference.--In allocating funds under this program, 
        the Secretary shall give preference--
                    ``(A) to States in regions which have a 
                disproportionately small share of economically 
                sustainable renewable energy generation capacity; and
                    ``(B) to State programs to stimulate or enhance 
                innovative renewable energy technologies.
    ``(e) Rules.--The Secretary shall issue rules implementing this 
section not later than 1 year after the date of enactment of this 
section.
    ``(f) Exemptions.--This section shall not apply in any calendar 
year to an electric utility--
            ``(1) that sold less than 4,000,000 megawatt-hours of 
        electric energy to electric consumers during the preceding 
        calendar year; or
            ``(2) in Hawaii.
    ``(g) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2008, the Secretary shall adjust for inflation the 
price of a renewable energy credit under subsection (b)(2)(B) and the 
amount of the civil penalty per kilowatt-hour under subsection (c)(2).
    ``(h) State Programs.--Nothing in this section shall diminish any 
authority of a State or political subdivision thereof to adopt or 
enforce any law or regulation respecting renewable energy, but, except 
as provided in subsection (c)(3), no such law or regulation shall 
relieve any person of any requirement otherwise applicable under this 
section. The Secretary, in consultation with States having such 
renewable energy programs, shall, to the maximum extent practicable, 
facilitate coordination between the Federal program and State programs.
    ``(i) Recovery of Costs.--
            ``(1) In general.--The Commission shall issue and enforce 
        such regulations as are necessary to ensure that an electric 
        utility recovers all prudently incurred costs associated with 
        compliance with this section.
            ``(2) Applicable law.--A regulation under paragraph (1) 
        shall be enforceable in accordance with the provisions of law 
        applicable to enforcement of regulations under the Federal 
        Power Act (16 U.S.C. 791a et seq.).
    ``(j) Definitions.--In this section:
            ``(1) Base amount of electricity.--The term `base amount of 
        electricity' means the total amount of electricity sold by an 
        electric utility to electric consumers in a calendar year, 
        excluding--
                    ``(A) electricity generated by a hydroelectric 
                facility (including a pumped storage facility but 
                excluding incremental hydropower); and
                    ``(B) electricity generated through the 
                incineration of municipal solid waste.
            ``(2) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at a 
        customer site.
            ``(3) Existing renewable energy.--The term `existing 
        renewable energy' means, except as provided in paragraph 
        (7)(B), electric energy generated at a facility (including a 
        distributed generation facility) placed in service prior to 
        January 1, 2003, from solar, wind, or geothermal energy, ocean 
        energy, biomass (as defined in section 203(a) of the Energy 
        Policy Act of 2005), or landfill gas.
            ``(4) Geothermal energy.--The term `geothermal energy' 
        means energy derived from a geothermal deposit (within the 
        meaning of section 613(e)(2) of the Internal Revenue Code of 
        1986).
            ``(5) Incremental geothermal production.--
                    ``(A) In general.--The term `incremental geothermal 
                production' means for any year the excess of--
                            ``(i) the total kilowatt hours of 
                        electricity produced from a facility (including 
                        a distributed generation facility) using 
                        geothermal energy; over
                            ``(ii) the average annual kilowatt hours 
                        produced at such facility for 5 of the previous 
                        7 calendar years before the date of enactment 
                        of this section after eliminating the highest 
                        and the lowest kilowatt hour production years 
                        in such 7-year period.
                    ``(B) Special rule.--A facility described in 
                subparagraph (A) that was placed in service at least 7 
                years before the date of enactment of this section 
                shall commencing with the year in which such date of 
                enactment occurs, reduce the amount calculated under 
                subparagraph (A)(ii) each year, on a cumulative basis, 
                by the average percentage decrease in the annual 
                kilowatt hour production for the 7-year period 
                described in subparagraph (A)(ii) with such cumulative 
                sum not to exceed 30 percent.
            ``(6) Incremental hydropower.--The term `incremental 
        hydropower' means additional energy generated as a result of 
        efficiency improvements or capacity additions made on or after 
        the date of enactment of this section 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. The term does not include additional energy 
        generated as a result of operational changes not directly 
        associated with efficiency improvements or capacity additions. 
        Efficiency improvements and capacity additions shall be 
        measured on the basis of 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.
            ``(7) New renewable energy.--The term `new renewable 
        energy' means--
                    ``(A) electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service on or after January 1, 2003, 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) incremental hydropower; and
                    ``(B) for electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service prior to the date of enactment of this 
                section--
                            ``(i) the additional energy above the 
                        average generation in the 3 years preceding the 
                        date of enactment of this section at the 
                        facility from--
                                    ``(I) solar or wind 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) incremental hydropower.
                            ``(ii) incremental geothermal production.
            ``(8) Ocean energy.--The term `ocean energy' includes 
        current, wave, tidal, and thermal energy.
    ``(k) Sunset.--This section expires on December 31, 2030.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) 
is amended by adding at the end of the items relating to title VI the 
following:

``Sec. 610. Federal renewable portfolio standard.''.

SEC. 302. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY GENERATED BY 
              RENEWABLE ENERGY.

    Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is 
amended by striking subsection (a) and inserting the following:
    ``(a) Requirement.--The President, acting through the Secretary, 
shall ensure that, of the total quantity of electric energy the Federal 
Government consumes during any fiscal year, the following amounts shall 
be renewable energy:
            ``(1) Not less than 5 percent in each of fiscal years 2008 
        and 2009.
            ``(2) Not less than 7.5 percent in each of fiscal years 
        2010 through 2012.
            ``(3) Not less than 10 percent in fiscal years 2013 and 
        each fiscal year thereafter.''.

              TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

SEC. 401. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) 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).
    (b) 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) Separate contracts.--In carrying out a 
                contract under this title, a Federal agency may--
                            ``(i) enter into a separate contract for 
                        energy services and conservation measures under 
                        the contract; and
                            ``(ii) provide all or part of the financing 
                        necessary to carry out the contract.''.
    (c) 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, and 
                installation of renewable energy systems;
                    ``(C) the sale or transfer of electrical or thermal 
                energy generated on-site, 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.''.
    (d) Energy and Cost Savings in Nonbuilding Applications.--
            (1) Definitions.--In this subsection:
                    (A) Nonbuilding application.--The term 
                ``nonbuilding application'' means--
                            (i) 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
                            (ii) any federally-owned equipment used to 
                        generate electricity or transport water.
                    (B) Secondary savings.--
                            (i) 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.
                            (ii) Inclusions.--The term ``secondary 
                        savings'' includes--
                                    (I) energy and cost savings that 
                                result from a reduction in the need for 
                                fuel delivery and logistical support;
                                    (II) personnel cost savings and 
                                environmental benefits; and
                                    (III) in the case of electric 
                                generation equipment, the benefits of 
                                increased efficiency in the production 
                                of electricity, including revenues 
                                received by the Federal Government from 
                                the sale of electricity so produced.
            (2) Study.--
                    (A) 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.
                    (B) Requirements.--The study under this subsection 
                shall include--
                            (i) an estimate of the potential energy and 
                        cost savings to the Federal Government, 
                        including secondary savings and benefits, from 
                        increased efficiency in nonbuilding 
                        applications;
                            (ii) 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 such use; and
                            (iii) such recommendations as the Secretary 
                        and Secretary of Defense determine to be 
                        appropriate.

SEC. 402. DEPLOYMENT OF NEW TECHNOLOGIES FOR HIGH-EFFICIENCY CONSUMER 
              PRODUCTS.

    (a) Definitions.--In this section:
            (1) Energy savings.--The term ``energy savings'' means 
        megawatt-hours of electricity or million British thermal units 
        of natural gas saved by a product, in comparison to projected 
        energy consumption under the energy efficiency standard 
        applicable to the product.
            (2) High-efficiency consumer product.--The term ``high-
        efficiency consumer product'' means a covered product to which 
        an energy conservation standard applies under section 325 of 
        the Energy Policy and Conservation Act (42 U.S.C. 6295), if the 
        energy efficiency of the product exceeds the energy efficiency 
        required under the standard.
    (b) Financial Incentives Program.--Effective beginning October 1, 
2006, the Secretary shall competitively award financial incentives 
under this section for the manufacture of high-efficiency consumer 
products.
    (c) Requirements.--
            (1) In general.--The Secretary shall make awards under this 
        section to manufacturers of high-efficiency consumer products, 
        based on the bid of each manufacturer in terms of dollars per 
        megawatt-hour or million British thermal units saved.
            (2) Acceptance of bids.--In making awards under this 
        section, the Secretary shall--
                    (A) solicit bids for reverse auction from 
                appropriate manufacturers, as determined by the 
                Secretary; and
                    (B) award financial incentives to the manufacturers 
                that submit the lowest bids that meet the requirements 
                established by the Secretary.
    (d) Forms of Awards.--An award for a high-efficiency consumer 
product under this section shall be in the form of a lump sum payment 
in an amount equal to the product obtained by multiplying--
            (1) the amount of the bid by the manufacturer of the high-
        efficiency consumer product; and
            (2) the energy savings during the projected useful life of 
        the high-efficiency consumer product, not to exceed 10 years, 
        as determined under regulations issued by the Secretary.

SEC. 403. NATIONAL MEDIA CAMPAIGN TO DECREASE OIL AND NATURAL GAS 
              CONSUMPTION.

    (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 for the purpose of decreasing oil and natural 
gas consumption in the United States over the next decade.
    (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 the following:
                    (A) Advertising costs.--
                            (i) The purchase of media time and space.
                            (ii) Creative and talent costs.
                            (iii) Testing and evaluation of 
                        advertising.
                            (iv) Evaluation of the effectiveness of the 
                        media campaign.
                            (v) The negotiated fees for the winning 
                        bidder on requests from proposals issued either 
                        by the Secretary for purposes otherwise 
                        authorized in this section.
                            (vi) Entertainment industry outreach, 
                        interactive outreach, media projects and 
                        activities, public information, news media 
                        outreach, and corporate sponsorship and 
                        participation.
                    (B) Administrative costs.--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 
                oil and natural gas consumption, in both absolute and 
                per capita terms; and
                    (B) an evaluation that enables consideration 
                whether the media campaign contributed to reduction of 
                oil and natural gas 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.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 404. ENERGY EFFICIENCY RESOURCE PROGRAMS.

    (a) Electric Utility Programs.--Section 111 of the Public Utilities 
Regulatory Policy Act of 1978 (16 U.S.C. 2621) is amended by adding at 
the end the following:
    ``(e) Energy Efficiency Resource Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual electricity 
                consumption or peak demand of consumers served by an 
                electric utility by a percentage of the demand baseline 
                of the utility that is equal to not less than 0.75 
                percent of the number of years during which the program 
                is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) Public hearing.--As soon as practicable after 
                the date of enactment of this subsection, but not later 
                than 3 years after that date, each State regulatory 
                authority (with respect to each electric utility over 
                which the State has ratemaking authority) and each 
                nonregulated electric utility shall, after notice, 
                conduct a public hearing on the benefits and 
                feasibility of carrying out an energy efficiency 
                resource program.
                    ``(B) Energy efficiency resource program.--A State 
                regulatory authority or nonregulated utility shall 
                carry out an energy efficiency resource program if, on 
                the basis of a hearing under subparagraph (A), the 
                State regulatory authority or nonregulated utility 
                determines that the program would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to carry out.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each electric utility over 
                        which the State has ratemaking authority to 
                        carry out an energy efficiency resource 
                        program; and
                            ``(ii) allow such a utility to recover 
                        expenditures incurred by the utility in 
                        carrying out the energy efficiency resource 
                        program.
                    ``(B) Nonregulated electric utilities.--If a 
                nonregulated electric utility makes a determination 
                under paragraph (2)(B), the utility shall carry out an 
                energy efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or a nonregulated electric utility 
        operating in the State) that demonstrates to the Secretary that 
        an energy efficiency resource program is in effect in the 
        State.''.
    (b) Gas Utilities.--Section 303 of the Public Utilities Regulatory 
Policy Act of 1978 (15 U.S.C. 3203) is amended by adding at the end the 
following:
    ``(e) Energy Efficiency Resource Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual gas consumption or 
                peak demand of consumers served by a gas utility by a 
                percentage of the demand baseline of the utility that 
                is equal to not less than 0.75 percent of the number of 
                years during which the program is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) Public hearing.--As soon as practicable after 
                the date of enactment of this subsection, but not later 
                than 3 years after that date, each State regulatory 
                authority (with respect to each gas utility over which 
                the State has ratemaking authority) and each 
                nonregulated gas utility shall, after notice, conduct a 
                public hearing on the benefits and feasibility of 
                carrying out an energy efficiency resource program.
                    ``(B) Energy efficiency resource program.--A State 
                regulatory authority or nonregulated utility shall 
                carry out an energy efficiency resource program if, on 
                the basis of a hearing under subparagraph (A), the 
                State regulatory authority or nonregulated utility 
                determines that the program would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to carry out.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each gas utility over which 
                        the State has ratemaking authority to carry out 
                        an energy efficiency resource program; and
                            ``(ii) allow such a utility to recover 
                        expenditures incurred by the utility in 
                        carrying out the energy efficiency resource 
                        program.
                    ``(B) Nonregulated gas utilities.--If a 
                nonregulated gas utility makes a determination under 
                paragraph (2)(B), the utility shall carry out an energy 
                efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or a nonregulated gas utility operating 
        in the State) that demonstrates to the Secretary that an energy 
        efficiency resource program is in effect in the State.''.

                TITLE V--ASSISTANCE TO ENERGY CONSUMERS

SEC. 501. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL BUSINESS AND 
              AGRICULTURAL PRODUCERS.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Small Business Administration; and
            (2) the term ``small business concern'' has the meaning 
        given the term in section 3 of the Small Business Act (15 
        U.S.C. 632).
    (b) Small Business Producer Energy Emergency Disaster Loan 
Program.--
            (1) Disaster loan authority.--Section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)) is amended by inserting 
        immediately after paragraph (3) the following:
            ``(4) Energy disaster loans.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `base price index' means the 
                        moving average of the closing unit price on the 
                        New York Mercantile Exchange for heating oil, 
                        natural gas, gasoline, or propane for the 10 
                        days that correspond to the trading days 
                        described in clause (ii) in each of the most 
                        recent 2 preceding years;
                            ``(ii) the term `current price index' means 
                        the moving average of the closing unit price on 
                        the New York Mercantile Exchange, for the 10 
                        most recent trading days, for contracts to 
                        purchase heating oil, natural gas, gasoline, or 
                        propane during the subsequent calendar month, 
                        commonly known as the `front month'; and
                            ``(iii) the term `significant increase' 
                        means--
                                    ``(I) with respect to the price of 
                                heating oil, natural gas, gasoline, or 
                                propane, any time the current price 
                                index exceeds the base price index by 
                                not less than 40 percent; and
                                    ``(II) with respect to the price of 
                                kerosene, any increase which the 
                                Administrator, in consultation with the 
                                Secretary of Energy, determines to be 
                                significant.
                    ``(B) Loan authority.--The Administrator may make 
                such loans, either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis, to 
                assist a small business concern that has suffered or 
                that is likely to suffer substantial economic injury on 
                or after January 1, 2005, as the result of a 
                significant increase in the price of heating oil, 
                natural gas, gasoline, propane, or kerosene occurring 
                on or after January 1, 2005.
                    ``(C) Interest rate.--Any loan or guarantee 
                extended pursuant to this paragraph shall be made at 
                the same interest rate as economic injury loans under 
                paragraph (2).
                    ``(D) Maximum amount.--No loan may be made under 
                this paragraph, either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis, if 
                the total amount outstanding and committed to the 
                borrower under this subsection would exceed $1,500,000, 
                unless such borrower constitutes a major source of 
                employment in its surrounding area, as determined by 
                the Administrator, in which case the Administrator, in 
                the discretion of the Administrator, may waive the 
                $1,500,000 limitation.
                    ``(E) Disaster declaration.--For purposes of 
                assistance under this paragraph--
                            ``(i) a declaration of a disaster area 
                        based on conditions specified in this paragraph 
                        shall be required, and shall be made by the 
                        President or the Administrator; or
                            ``(ii) if no declaration has been made 
                        pursuant to clause (i), the Governor of a State 
                        in which a significant increase in the price of 
                        heating oil, natural gas, gasoline, propane, or 
                        kerosene has occurred may certify to the 
                        Administrator that small business concerns have 
                        suffered economic injury as a result of such 
                        increase and are in need of financial 
                        assistance which is not otherwise available on 
                        reasonable terms in that State, and upon 
                        receipt of such certification, the 
                        Administrator may make such loans as would have 
                        been available under this paragraph if a 
                        disaster declaration had been issued.
                    ``(F) Conversion.--Notwithstanding any other 
                provision of law, loans made under this paragraph may 
                be used by a small business concern described in 
                subparagraph (B) to convert from the use of heating 
                oil, natural gas, gasoline, propane, or kerosene to a 
                renewable or alternative energy source, including 
                agriculture and urban waste, geothermal energy, 
                cogeneration, solar energy, wind energy, or fuel 
                cells.''.
            (2) Conforming amendments.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``, a significant increase in the 
                price of heating oil, natural gas, gasoline, propane, 
                or kerosene,'' after ``civil disorders''; and
                    (B) by inserting ``other'' before ``economic''.
    (c) Agricultural Producer Emergency Loans.--
            (1) In general.--Section 321(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1961(a)) is amended--
                    (A) in the first sentence--
                            (i) by striking ``aquaculture operations 
                        have'' and inserting ``aquaculture operations 
                        (i) have''; and
                            (ii) by inserting before ``: Provided,'' 
                        the following: ``, or (ii)(I) are owned or 
                        operated by such an applicant that is also a 
                        small business concern (as defined in section 3 
                        of the Small Business Act (15 U.S.C. 632)), and 
                        (II) have suffered or are likely to suffer 
                        substantial economic injury on or after January 
                        1, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after January 1, 
                        2005, in connection with an energy emergency 
                        declared by the President or the Secretary'';
                    (B) in the third sentence, by inserting before the 
                period at the end the following: ``or by an energy 
                emergency declared by the President or the Secretary''; 
                and
                    (C) in the fourth sentence--
                            (i) by striking ``or natural disaster'' 
                        each place that term appears and inserting ``, 
                        natural disaster, or energy emergency''; and
                            (ii) by inserting ``or declaration'' after 
                        ``emergency designation''.
            (2) Funding.--Funds available on the date of enactment of 
        this Act for emergency loans under subtitle C of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
        seq.) shall be available to carry out the amendments made by 
        paragraph (1) to meet the needs resulting from natural 
        disasters.
    (d) Guidelines and Rulemaking.--
            (1) Guidelines.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator and the Secretary of 
        Agriculture shall each issue guidelines to carry out 
        subsections (b) and (c), respectively, and the amendments made 
        thereby, which guidelines shall become effective on the date of 
        their issuance.
            (2) Rulemaking.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator, after consultation 
        with the Secretary of Energy, shall promulgate regulations 
        specifying the method for determining a significant increase in 
        the price of kerosene under section 7(b)(4)(A)(iii)(II) of the 
        Small Business Act, as added by this section.
    (e) Reports.--
            (1) Small business administration.--Not later than 12 
        months after the date on which the Administrator issues 
        guidelines under subsection (d)(1), and annually thereafter, 
        until the date that is 12 months after the end of the effective 
        period of section 7(b)(4) of the Small Business Act, as added 
        by this section, 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 on the effectiveness of the 
        assistance made available under section 7(b)(4) of the Small 
        Business Act, as added by this section, including--
                    (A) the number of small business concerns that 
                applied for a loan under such section 7(b)(4) and the 
                number of those that received such loans;
                    (B) the dollar value of those loans;
                    (C) the States in which the small business concerns 
                that received such loans are located;
                    (D) the type of energy that caused the significant 
                increase in the cost for the participating small 
                business concerns; and
                    (E) recommendations for ways to improve the 
                assistance provided under such section 7(b)(4), if any.
            (2) Department of agriculture.--Not later than 12 months 
        after the date on which the Secretary of Agriculture issues 
        guidelines under subsection (d)(1), and annually thereafter, 
        until the date that is 12 months after the end of the effective 
        period of the amendments made to section 321(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) 
        by this section, the Secretary shall submit to the Committee on 
        Small Business and Entrepreneurship and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and to the 
        Committee on Small Business and the Committee on Agriculture of 
        the House of Representatives, a report that--
                    (A) describes the effectiveness of the assistance 
                made available under section 321(a) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961(a)), as 
                amended by this section; and
                    (B) contains recommendations for ways to improve 
                the assistance provided under such section 321(a).
    (f) Effective Date.--
            (1) Small business.--The amendments made by subsection (b) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the 
        Administrator under subsection (d)(1) or 30 days after the date 
        of enactment of this Act, with respect to assistance under 
        section 7(b)(4) of the Small Business Act, as added by this 
        section.
            (2) Agriculture.--The amendments made by subsection (c) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the Secretary 
        of Agriculture under subsection (d)(1) or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)), as amended by this section.

SEC. 502. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM FOR 
              WEATHERIZATION PURPOSES.

    (a) In General.--Part A of title IV of the Energy Conservation and 
Production Act is amended--
            (1) by redesignating section 422 (42 U.S.C. 6872) as 
        section 423; and
            (2) by inserting after section 421 (42 U.S.C. 6871) the 
        following:

``SEC. 422. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM FOR 
              WEATHERIZATION PURPOSES.

    ``(a) Establishment of Program.--The Secretary shall establish, 
within the Weatherization Assistance Program, a program to assist in 
the replacement of unsafe or highly inefficient heating and cooling 
units in low-income households.
    ``(b) Administration.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall administer the program 
        established under this section in accordance with this part.
            ``(2) Exemption for high-efficiency heating and cooling 
        equipment expenditures.--Assistance for high-efficiency heating 
        and cooling equipment under this section shall be exempt from 
        the standards established under section 413(b)(3) and from 
        section 415(c).
            ``(3) Identification of heating and cooling system 
        upgrades.--Assistance for system upgrades under this section 
        shall be based on a standard weatherization audit and 
        appropriate diagnostic procedures in use by the program.
            ``(4) Weatherization of home receiving new heating or 
        cooling system.--Assistance may be perceived for a home 
        receiving a new heating or cooling system under this section 
        regardless of whether the home is fully weatherized in the year 
        that the home received a new heating system.
            ``(5) Fuel.--The Secretary shall make no rule prohibiting a 
        grantee from installing high-efficiency equipment that uses a 
        fuel (including a renewable fuel) most likely to result in 
        reliable supply and the lowest practicable energy bills, 
        regardless of the fuel previously used by the household.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $40,000,000 for fiscal year 2006;
            ``(2) $50,000,000 for fiscal year 2007; and
            ``(3) $60,000,000 for fiscal year 2008.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Conservation and Production Act (42 U.S.C. prec. 6901) is 
amended--
            (1) by redesignating the item relating to section 422 as an 
        item relating to section 423; and
            (2) by inserting after the item relating to section 421 the 
        following:

``Sec. 422. Efficient and safe equipment program.''.
                                 <all>
```