II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Enhanced Energy Security Act of 2006’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 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 


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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. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Energy. 


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1 TITLE I—NATIONAL OIL SAVINGS 

2 PLAN AND REQUIREMENTS 

3 SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN. 

4 Not later than 270 days after the date of enactment 

5 of this Act, the Director of the Office of Management and 

6 Budget (referred to in this title as the ‘‘Director’’) shall 

7 publish in the Federal Register an action plan consisting 

8 of— 

9 (1) a list of requirements proposed or to be pro10 posed pursuant to section 102 that are authorized to 

11 be issued under law in effect on the date of enact12 ment of this Act, and this Act, that will be suffi13 cient, when taken together, to save from the baseline 

14 determined under section 105— 

15 (A) 2,500,000 barrels of oil per day on av16 erage during calendar year 2016; 

17 (B) 7,000,000 barrels of oil per day on av18 erage during calendar year 2026; and 

19 (C) 10,000,000 barrels per day on average 

20 during calendar year 2031; and 

21 (2) a Federal Government-wide analysis of— 

22 (A) the expected oil savings from the base23 line to be accomplished by each requirement; 

24 and 


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1 (B) whether all such requirements, taken 

2 together, will achieve the oil savings specified in 

3 this section. 

4 SEC. 102. STANDARDS AND REQUIREMENTS. 

5 (a) IN GENERAL.—On or before the date of publica6 tion of the action plan under section 101, the Secretary 

7 of Energy, the Secretary of Transportation, the Secretary 

8 of Defense, the Secretary of Agriculture, the Adminis9 trator of the Environmental Protection Agency, and the 

10 head of any other agency the President determines appro11 priate shall each propose, or issue a notice of intent to 

12 propose, regulations establishing each standard or other 

13 requirement listed in the action plan that is under the ju14 risdiction of the respective agency using authorities de15 scribed in subsection (b). 

16 (b) AUTHORITIES.—The head of each agency de17 scribed in subsection (a) shall use to carry out this sec18 tion— 

19 (1) any authority in existence on the date of en20 actment of this Act (including regulations); and 

21 (2) any new authority provided under this Act 

22 (including an amendment made by this Act). 

23 (c) FINAL REGULATIONS.—Not later than 18 months 

24 after the date of enactment of this Act, the head of each 


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1 agency described in subsection (a) shall promulgate final 

2 versions of the regulations required under this section. 

3 (d) AGENCY ANALYSES.—Each proposed and final 

4 regulation promulgated under this section shall— 

5 (1) be designed to achieve at least the oil sav6 ings resulting from the regulation under the action 

7 plan published under section 101; and 

8 (2) be accompanied by an analysis by the appli9 cable agency describing the manner in which the 

10 regulation will promote the achievement of the oil 

11 savings from the baseline determined under section 

12 105. 

13 SEC. 103. INITIAL EVALUATION. 

14 (a) IN GENERAL.—Not later than 2 years after the 

15 date of enactment of this Act, the Director shall publish 

16 in the Federal Register a Federal Government-wide anal17 ysis of the oil savings achieved from the baseline estab18 lished under section 105. 

19 (b) INADEQUATE OIL SAVINGS.—If the oil savings 

20 are less than the targets established under section 101, 

21 simultaneously with the analysis required under sub22 section (a)— 

23 (1) the Director shall publish a revised action 

24 plan that is adequate to achieve the targets; and 


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1 (2) the Secretary of Energy, the Secretary of 

2 Transportation, and the Administrator shall propose 

3 new or revised regulations under subsections (a), 

4 (b), and (c), respectively, of section 102. 

5 (c) FINAL REGULATIONS.—Not later than 180 days 

6 after the date on which regulations are proposed under 

7 subsection (b)(2), the Secretary of Energy, the Secretary 

8 of Transportation, and the Administrator shall promul9 gate final versions of those regulations. 

10 SEC. 104. REVIEW AND UPDATE OF ACTION PLAN. 

11 (a) REVIEW.—Not later than January 1, 2011, and 

12 every 3 years thereafter, the Director shall submit to Con13 gress, and publish, a report that— 

14 (1) evaluates the progress achieved in imple15 menting the oil savings targets established under 

16 section 101; 

17 (2) analyzes the expected oil savings under the 

18 standards and requirements established under this 

19 Act and the amendments made by this Act; and 

20 (3)(A) analyzes the potential to achieve oil sav21 ings that are in addition to the savings required by 

22 section 101; and 

23 (B) if the President determines that it is in the 

24 national interest, establishes a higher oil savings tarVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 get for calendar year 2017 or any subsequent cal2 endar year. 

3 (b) INADEQUATE OIL SAVINGS.—If the oil savings 

4 are less than the targets established under section 101, 

5 simultaneously with the report required under subsection 

6 (a)— 

7 (1) the Director shall publish a revised action 

8 plan that is adequate to achieve the targets; and 

9 (2) the Secretary of Energy, the Secretary of 

10 Transportation, and the Administrator shall propose 

11 new or revised regulations under subsections (a), 

12 (b), and (c), respectively, of section 102. 

13 (c) FINAL REGULATIONS.—Not later than 180 days 

14 after the date on which regulations are proposed under 

15 subsection (b)(2), the Secretary of Energy, the Secretary 

16 of Transportation, and the Administrator shall promul17 gate final versions of those regulations. 

18 SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS. 

19 In performing the analyses and promulgating pro20 posed or final regulations to establish standards and other 

21 requirements necessary to achieve the oil savings required 

22 by this title, the Secretary of Energy, the Secretary of 

23 Transportation, the Secretary of Defense, the Secretary 

24 of Agriculture, the Administrator of the Environmental 


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1 Protection Agency, and the head of any other agency the 

2 President determines to be appropriate shall— 

3 (1) determine oil savings as the projected re4 duction in oil consumption from the baseline estab5 lished by the reference case contained in the report 

6 of the Energy Information Administration entitled 

7 ‘‘Annual Energy Outlook 2005’’; 

8 (2) determine the oil savings projections re9 quired on an annual basis for each of calendar years 

10 2009 through 2026; and 

11 (3) account for any overlap among the stand12 ards and other requirements to ensure that the pro13 jected oil savings from all the promulgated stand14 ards and requirements, taken together, are as accu15 rate as practicable. 

16 TITLE II—FEDERAL PROGRAMS 

17 FOR THE CONSERVATION OF OIL 

18 SEC. 201. FEDERAL FLEET CONSERVATION REQUIRE19 MENTS. 

20 (a) IN GENERAL.—Part J of title IV of the Energy 

21 Policy and Conservation Act (42 U.S.C. 6374 et seq.) is 

22 amended by adding at the end the following: 


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1 ‘‘SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIRE2 MENTS. 

3 ‘‘(a) MANDATORY REDUCTION IN PETROLEUM CON4 SUMPTION.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall issue 

6 regulations for Federal fleets subject to section 

7 400AA requiring that not later than October 1, 

8 2009, each Federal agency achieve at least a 20 per9 cent reduction in petroleum consumption, as cal10 culated from the baseline established by the Sec11 retary for fiscal year 1999. 

12 ‘‘(2) PLAN.— 

13 ‘‘(A) REQUIREMENT.—The regulations 

14 shall require each Federal agency to develop a 

15 plan to meet the required petroleum reduction 

16 level. 

17 ‘‘(B) MEASURES.—The plan may allow an 

18 agency to meet the required petroleum reduc19 tion level through— 

20 ‘‘(i) the use of alternative fuels; 

21 ‘‘(ii) the acquisition of vehicles with 

22 higher fuel economy, including hybrid vehi23 cles; 

24 ‘‘(iii) the substitution of cars for light 

25 trucks; 


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1 ‘‘(iv) an increase in vehicle load fac2 tors; 

3 ‘‘(v) a decrease in vehicle miles trav4 eled; 

5 ‘‘(vi) a decrease in fleet size; and 

6 ‘‘(vii) other measures. 

7 ‘‘(C) REPLACEMENT TIRES.—The regula8 tions shall include a requirement that each Fed9 eral agency purchase energy-efficient replace10 ment tires for the respective fleet vehicles of the 

11 agency. 

12 ‘‘(b) FEDERAL EMPLOYEE INCENTIVE PROGRAMS

13 FOR REDUCING PETROLEUM CONSUMPTION.— 

14 ‘‘(1) IN GENERAL.—Each Federal agency shall 

15 actively promote incentive programs that encourage 

16 Federal employees and contractors to reduce petro17 leum through the use of practices such as— 

18 ‘‘(A) telecommuting; 

19 ‘‘(B) public transit; 

20 ‘‘(C) carpooling; and 

21 ‘‘(D) bicycling. 

22 ‘‘(2) MONITORING AND SUPPORT FOR INCEN23 TIVE PROGRAMS.—The Administrator of the General 

24 Services Administration, the Director of the Office 

25 of Personnel Management, and the Secretary of the 


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1 Department of Energy shall monitor and provide ap2 propriate support to agency programs described in 

3 paragraph (1).’’. 

4 (b) TABLE OF CONTENTS AMENDMENT.—The table 

5 of contents of the Energy Policy and Conservation Act (42 

6 U.S.C. prec. 6201) is amended by adding at the end of 

7 the items relating to part J of title III the following: 

‘‘Sec. 400FF. Federal fleet conservation requirements.’’. 

8 SEC. 202. ASSISTANCE FOR STATE PROGRAMS TO RETIRE 

9 FUEL-INEFFICIENT MOTOR VEHICLES. 

10 (a) DEFINITIONS.—In this section: 

11 (1) FUEL-EFFICIENT AUTOMOBILE.—The term 

12 ‘‘fuel-efficient automobile’’ means a passenger auto13 mobile or a light-duty truck that has a fuel economy 

14 rating that is 40 percent greater than the average 

15 fuel economy standard prescribed pursuant to sec16 tion 32902 of title 49, United States Code, or other 

17 law, applicable to the passenger automobile or light18 duty truck. 

19 (2) FUEL-INEFFICIENT AUTOMOBILES.—The 

20 term ‘‘fuel-inefficient automobile’’ means a pas21 senger automobile or a light-duty truck manufac22 tured in a model year more than 15 years before the 

23 fiscal year in which appropriations are made under 

24 subsection (f) that, at the time of manufacture, had 


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1 a fuel economy rating that was equal to or less than 

2 20 miles per gallon. 

3 (3) LIGHT-DUTY TRUCK.— 

4 (A) IN GENERAL.—The term ‘‘light-duty 

5 truck’’ means an automobile that is not a pas6 senger automobile. 

7 (B) INCLUSIONS.—The term ‘‘light-duty 

8 truck’’ includes a pickup truck, a van, or a 

9 four-wheel-drive general utility vehicle, as those 

10 terms are defined in section 600.002–85 of title 

11 40, Code of Federal Regulations. 

12 (4) STATE.—The term ‘‘State’’ means any of 

13 the several States and the District of Columbia. 

14 (b) ESTABLISHMENT.—The Secretary shall establish 

15 a program, to be known as the ‘‘National Motor Vehicle 

16 Efficiency Improvement Program,’’ under which the Sec17 retary shall provide grants to States to operate voluntary 

18 programs to offer owners of fuel inefficient automobiles 

19 financial incentives to replace the automobiles with fuel 

20 efficient automobiles. 

21 (c) ELIGIBILITY CRITERIA.—The Secretary shall ap22 prove a State plan and provide the funds made available 

23 under subsection (f), if the State plan— 

24 (1) except as provided in paragraph (8), re25 quires that all passenger automobiles and light-duty 


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1 trucks turned in be scrapped, after allowing a period 

2 of time for the recovery of spare parts; 

3 (2) requires that all passenger automobiles and 

4 light-duty trucks turned in be registered in the State 

5 in order to be eligible; 

6 (3) requires that all passenger automobiles and 

7 light-duty trucks turned in be operational at the 

8 time that the passenger automobiles and light-duty 

9 trucks are turned in; 

10 (4) restricts automobile owners (except not-for11 profit organizations) from turning in more than 1 

12 passenger automobile and 1 light-duty truck during 

13 a 1-year period; 

14 (5) provides an appropriate payment to the per15 son recycling the scrapped passenger automobile or 

16 light-duty truck for each turned-in passenger auto17 mobile or light-duty truck; 

18 (6) subject to subsection (d)(2), provides a min19 imum payment to the automobile owner for each 

20 passenger automobile and light-duty truck turned in; 

21 and 

22 (7) provides appropriate exceptions to the 

23 scrappage requirement for vehicles that qualify as 

24 antique cars under State law. 

25 (d) STATE PLAN.— 


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1 (1) IN GENERAL.—To be eligible to receive 

2 funds under the program, the Governor of a State 

3 shall submit to the Secretary a plan to carry out a 

4 program under this section in that State. 

5 (2) ADDITIONAL STATE CREDIT.—In addition 

6 to the payment under subsection (c)(6), the State 

7 plan may provide a credit that may be redeemed by 

8 the owner of the replaced fuel-inefficient automobile 

9 at the time of purchase of the new fuel-efficient 

10 automobile. 

11 (e) ALLOCATION FORMULA.—The amounts appro12 priated pursuant to subsection (f) shall be allocated among 

13 the States on the basis of the number of registered motor 

14 vehicles in each State at the time that the Secretary needs 

15 to compute shares under this subsection. 

16 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the Secretary such 

18 sums as are necessary to carry out this section, to remain 

19 available until expended. 

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

21 IDLING. 

22 (a) STATEMENT OF POLICY.—Congress encourages 

23 each local educational agency (as defined in section 

24 9101(26) of the Elementary and Secondary Education Act 

25 of 1965 (20 U.S.C. 7801(26))) that receives Federal funds 


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1 under the Elementary and Secondary Education Act of 

2 1965 (20 U.S.C. 6301 et seq.) to develop a policy to re3 duce the incidence of school bus idling at schools while 

4 picking up and unloading students. 

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Secretary of En7 ergy, working in coordination with the Secretary of Edu8 cation, $5,000,000 for each of fiscal years 2007 through 

9 2012 for use in educating States and local education agen10 cies about— 

11 (1) benefits of reducing school bus idling; and 

12 (2) ways in which school bus idling may be re13 duced. 

14 SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM. 

15 (a) PURPOSES.—The purposes of this section are— 

16 (1) to enable and promote, in partnership with 

17 industry, comprehensive development, demonstra18 tion, and commercialization of a wide range of elec19 tric drive components, systems, and vehicles using 

20 diverse electric drive transportation technologies; 

21 (2) to make critical public investments to help 

22 private industry, institutions of higher education, 

23 National Laboratories, and research institutions to 

24 expand innovation, industrial growth, and jobs in the 

25 United States; 


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1 (3) to expand the availability of the existing 

2 electric infrastructure for fueling light duty trans3 portation and other on-road and nonroad vehicles 

4 that are using petroleum and are mobile sources of 

5 emissions— 

6 (A) including the more than 3,000,000 re7 ported units (such as electric forklifts, golf 

8 carts, and similar nonroad vehicles) in use on 

9 the date of enactment of this Act; and 

10 (B) with the goal of enhancing the energy 

11 security of the United States, reduce depend12 ence on imported oil, and reduce emissions 

13 through the expansion of grid supported mobil14 ity; 

15 (4) to accelerate the widespread commercializa16 tion of all types of electric drive vehicle technology 

17 into all sizes and applications of vehicles, including 

18 commercialization of plug-in hybrid electric vehicles 

19 and plug-in hybrid fuel cell vehicles; and 

20 (5) to improve the energy efficiency of and re21 duce the petroleum use in transportation. 

22 (b) DEFINITIONS.—In this section: 

23 (1) BATTERY.—The term ‘‘battery’’ means an 

24 energy storage device used in an on-road or nonroad 


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1 vehicle powered in whole or in part using an off2 board or on-board source of electricity. 

3 (2) ELECTRIC DRIVE TRANSPORTATION TECH4 NOLOGY.—The term ‘‘electric drive transportation 

5 technology’’ means— 

6 (A) vehicles that use an electric motor for 

7 all or part of their motive power and that may 

8 or may not use off-board electricity, including 

9 battery electric vehicles, fuel cell vehicles, en10 gine dominant hybrid electric vehicles, plug-in 

11 hybrid electric vehicles, plug-in hybrid fuel cell 

12 vehicles, and electric rail; or 

13 (B) equipment relating to transportation 

14 or mobile sources of air pollution that use an 

15 electric motor to replace an internal combustion 

16 engine for all or part of the work of the equip17 ment, including corded electric equipment 

18 linked to transportation or mobile sources of air 

19 pollution. 

20 (3) ENGINE DOMINANT HYBRID ELECTRIC VE21 HICLE.—The term ‘‘engine dominant hybrid electric 

22 vehicle’’ means an on-road or nonroad vehicle that— 

23 (A) is propelled by an internal combustion 

24 engine or heat engine using— 

25 (i) any combustible fuel; 


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1 (ii) an on-board, rechargeable storage 

2 device; and 

3 (B) has no means of using an off-board 

4 source of electricity. 

5 (4) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

6 vehicle’’ means an on-road or nonroad vehicle that 

7 uses a fuel cell (as defined in section 3 of the Spark 

8 M. Matsunaga Hydrogen Research, Development, 

9 and Demonstration Act of 1990). 

10 (5) NONROAD VEHICLE.—The term ‘‘nonroad 

11 vehicle’’ has the meaning given the term in section 

12 216 of the Clean Air Act (42 U.S.C. 7550). 

13 (6) PLUG-IN HYBRID ELECTRIC VEHICLE.—The 

14 term ‘‘plug-in hybrid electric vehicle’’ means an on15 road or nonroad vehicle that is propelled by an inter16 nal combustion engine or heat engine using— 

17 (A) any combustible fuel; 

18 (B) an on-board, rechargeable storage de19 vice; and 

20 (C) a means of using an off-board source 

21 of electricity. 

22 (7) PLUG-IN HYBRID FUEL CELL VEHICLE.— 

23 The term ‘‘plug-in hybrid fuel cell vehicle’’ means a 

24 fuel cell vehicle with a battery powered by an off25 board source of electricity. 


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1 (c) PROGRAM.—The Secretary shall conduct a pro2 gram of research, development, demonstration, and com3 mercial application for electric drive transportation tech4 nology, including— 

5 (1) high capacity, high efficiency batteries; 

6 (2) high efficiency on-board and off-board 

7 charging components; 

8 (3) high power drive train systems for pas9 senger and commercial vehicles and for nonroad 

10 equipment; 

11 (4) control system development and power train 

12 development and integration for plug-in hybrid elec13 tric vehicles, plug-in hybrid fuel cell vehicles, and en14 gine dominant hybrid electric vehicles, including— 

15 (A) development of efficient cooling sys16 tems; 

17 (B) analysis and development of control 

18 systems that minimize the emissions profile 

19 when clean diesel engines are part of a plug-in 

20 hybrid drive system; and 

21 (C) development of different control sys22 tems that optimize for different goals, includ23 ing— 

24 (i) battery life; 


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1 (ii) reduction of petroleum consump2 tion; and 

3 (iii) green house gas reduction; 

4 (5) nanomaterial technology applied to both 

5 battery and fuel cell systems; 

6 (6) large-scale demonstrations, testing, and 

7 evaluation of plug-in hybrid electric vehicles in dif8 ferent applications with different batteries and con9 trol systems, including— 

10 (A) military applications; 

11 (B) mass market passenger and light-duty 

12 truck applications; 

13 (C) private fleet applications; and 

14 (D) medium- and heavy-duty applications; 

15 (7) a nationwide education strategy for electric 

16 drive transportation technologies providing sec17 ondary and high school teaching materials and sup18 port for university education focused on electric 

19 drive system and component engineering; 

20 (8) development, in consultation with the Ad21 ministrator of the Environmental Protection Agency, 

22 of procedures for testing and certification of criteria 

23 pollutants, fuel economy, and petroleum use for 

24 light-, medium-, and heavy-duty vehicle applications, 

25 including consideration of— 


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1 (A) the vehicle and fuel as a system, not 

2 just an engine; and 

3 (B) nightly off-board charging; and 

4 (9) advancement of battery and corded electric 

5 transportation technologies in mobile source applica6 tions by— 

7 (A) improvement in battery, drive train, 

8 and control system technologies; and 

9 (B) working with industry and the Admin10 istrator of the Environmental Protection Agen11 cy to— 

12 (i) understand and inventory markets; 

13 and 

14 (ii) identify and implement methods of 

15 removing barriers for existing and emerg16 ing applications. 

17 (d) GOALS.—The goals of the electric drive transpor18 tation technology program established under subsection 

19 (c) shall be to develop, in partnership with industry and 

20 institutions of higher education, projects that focus on— 

21 (1) innovative electric drive technology devel22 oped in the United States; 

23 (2) growth of employment in the United States 

24 in electric drive design and manufacturing; 


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1 (3) validation of the plug-in hybrid potential 

2 through fleet demonstrations; and 

3 (4) acceleration of fuel cell commercialization 

4 through comprehensive development and commer5 cialization of the electric drive technology systems 

6 that are the foundational technology of the fuel cell 

7 vehicle system. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $300,000,000 for each of fiscal years 2007 through 2012. 

11 SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DE12 VELOPMENT. 

13 (a) IN GENERAL.—As soon as practicable after the 

14 date of enactment of this Act, the Secretary shall establish 

15 a research and development program to determine ways 

16 in which— 

17 (1) the weight of vehicles may be reduced to im18 prove fuel efficiency without compromising pas19 senger safety; and 

20 (2) the cost of lightweight materials (such as 

21 steel alloys and carbon fibers) required for the con22 struction of lighter-weight vehicles may be reduced. 

23 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to carry out this section 

25 $60,000,000 for each of fiscal years 2007 through 2012. 


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1 SEC. 206. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTO2 MOBILE MANUFACTURER AND SUPPLIERS. 

3 (a) IN GENERAL.—Section 712(a) of the Energy Pol4 icy Act of 2005 (42 U.S.C. 16062(a)) is amended in the 

5 second sentence by striking ‘‘grants to automobile manu6 facturers’’ and inserting ‘‘grants and loan guarantees 

7 under section 1703 to automobile manufacturers and sup8 pliers’’. 

9 (b) CONFORMING AMENDMENT.—Section 1703(b) of 

10 the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 

11 amended by striking paragraph (8) and inserting the fol12 lowing: 

13 ‘‘(8) Production facilities for the manufacture 

14 of fuel-efficient vehicles or parts of such vehicles, in15 cluding hybrid and advanced diesel vehicles.’’. 

16 SEC. 207. FUNDING FOR ALTERNATIVE INFRASTRUCTURE 

17 FOR THE DISTRIBUTION OF TRANSPOR18 TATION FUELS. 

19 (a) IN GENERAL.—There is established in the Treas20 ury of the United States a trust fund, to be known as 

21 the ‘‘Alternative Fueling Infrastructure Trust Fund’’ (re22 ferred to in this section as the ‘‘Trust Fund’’), consisting 

23 of such amounts as are deposited into the Trust Fund 

24 under subsection (b) and any interest earned on invest25 ment of amounts in the Trust Fund. 


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1 (b) PENALTIES.—The Secretary of Transportation 

2 shall remit 90 percent of the amount collected in civil pen3 alties under section 32912 of title 49, United States Code, 

4 to the Trust Fund. 

5 (c) GRANT PROGRAM.— 

6 (1) IN GENERAL.—The Secretary of Energy 

7 shall obligate such sums as are available in the 

8 Trust Fund to establish a grant program to increase 

9 the number of locations at which consumers may 

10 purchase alternative transportation fuels. 

11 (2) ADMINISTRATION.— 

12 (A) IN GENERAL.—The Secretary may 

13 award grants under this subsection to— 

14 (i) individual fueling stations; and 

15 (ii) corporations (including nonprofit 

16 corporations) with demonstrated experience 

17 in the administration of grant funding for 

18 the purpose of alternative fueling infra19 structure. 

20 (B) MAXIMUM AMOUNT OF GRANTS.—A 

21 grant provided under this subsection may not 

22 exceed— 

23 (i) $150,000 for each site of an indi24 vidual fueling station; and 


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1 (ii) $500,000 for each corporation (in2 cluding a nonprofit corporation). 

3 (C) PRIORITIZATION.—The Secretary shall 

4 prioritize the provision of grants under this 

5 subsection to recognized nonprofit corporations 

6 that have proven experience and demonstrated 

7 technical expertise in the establishment of alter8 native fueling infrastructure, as determined by 

9 the Secretary. 

10 (D) ADMINISTRATIVE EXPENSES.—Not 

11 more than 10 percent of the funds provided in 

12 any grant may be used by the recipient of the 

13 grant to pay administrative expenses. 

14 (E) NUMBER OF VEHICLES.—In providing 

15 grants under this subsection, the Secretary 

16 shall consider the number of vehicles in service 

17 capable of using a specific type of alternative 

18 fuel. 

19 (F) MATCH.—Grant recipients shall pro20 vide a non-Federal match of not less than $1 

21 for every $3 of grant funds received under this 

22 subsection. 

23 (G) LOCATIONS.—Each grant recipient 

24 shall select the locations for each alternative 

25 fuel station to be constructed with grant funds 


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1 received under this subsection on a formal, 

2 open, and competitive basis. 

3 (H) USE OF INFORMATION IN SELECTION

4 OF RECIPIENTS.—In selecting grant recipients 

5 under this subsection, the Secretary may con6 sider— 

7 (i) public demand for each alternative 

8 fuel in a particular county based on State 

9 registration records indicating the number 

10 of vehicles that may be operated using al11 ternative fuel; and 

12 (ii) the opportunity to create or ex13 pand corridors of alternative fuel stations 

14 along interstates or highways. 

15 (3) USE OF GRANT FUNDS.—Grant funds re16 ceived under this subsection may be used to— 

17 (A) construct new facilities to dispense al18 ternative fuels; 

19 (B) purchase equipment to upgrade, ex20 pand, or otherwise improve existing alternative 

21 fuel facilities; or 

22 (C) purchase equipment or pay for specific 

23 turnkey fueling services by alternative fuel pro24 viders. 


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1 (4) FACILITIES.—Facilities constructed or up2 graded with grant funds under this subsection 

3 shall— 

4 (A) provide alternative fuel available to the 

5 public for a period not less than 4 years; 

6 (B) establish a marketing plan to advance 

7 the sale and use of alternative fuels; 

8 (C) prominently display the price of alter9 native fuel on the marquee and in the station; 

10 (D) provide point of sale materials on al11 ternative fuel; 

12 (E) clearly label the dispenser with con13 sistent materials; 

14 (F) price the alternative fuel at the same 

15 margin that is received for unleaded gasoline; 

16 and 

17 (G) support and use all available tax incen18 tives to reduce the cost of the alternative fuel 

19 to the lowest practicable retail price. 

20 (5) OPENING OF STATIONS.— 

21 (A) IN GENERAL.—Not later than the date 

22 on which each alternative fuel station begins to 

23 offer alternative fuel to the public, the grant re24 cipient that used grant funds to construct the 


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1 station shall notify the Secretary of the open2 ing. 

3 (B) WEBSITE.—The Secretary shall add 

4 each new alternative fuel station to the alter5 native fuel station locator on the website of the 

6 Department of Energy when the Secretary re7 ceives notification under this subsection. 

8 (6) REPORTS.—Not later than 180 days after 

9 the receipt of a grant award under this subsection, 

10 and every 180 days thereafter, each grant recipient 

11 shall submit a report to the Secretary that de12 scribes— 

13 (A) the status of each alternative fuel sta14 tion constructed with grant funds received 

15 under this subsection; 

16 (B) the quantity of alternative fuel dis17 pensed at each station during the preceding 

18 180-day period; and 

19 (C) the average price per gallon of the al20 ternative fuel sold at each station during the 

21 preceding 180-day period. 

22 SEC. 208. DEPLOYMENT OF NEW TECHNOLOGIES TO RE23 DUCE OIL USE IN TRANSPORTATION. 

24 (a) FUEL FROM CELLULOSIC BIOMASS.— 


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1 (1) IN GENERAL.—The Secretary shall provide 

2 deployment incentives under this subsection to en3 courage a variety of projects to produce transpor4 tation fuel from cellulosic biomass, relying on dif5 ferent feedstocks in different regions of the United 

6 States. 

7 (2) PROJECT ELIGIBILITY.—Incentives under 

8 this subsection shall be provided on a competitive 

9 basis to projects that produce fuel that— 

10 (A) meet United States fuel and emission 

11 specifications; 

12 (B) help diversify domestic transportation 

13 energy supplies; and 

14 (C) improve or maintain air, water, soil, 

15 and habitat quality. 

16 (3) INCENTIVES.—Incentives under this sub17 section may consist of— 

18 (A) loan guarantees under section 1510 of 

19 the Energy Policy Act of 2005 (42 U.S.C. 

20 16501), subject to section 1702 of that Act (22 

21 U.S.C. 16512), for the construction of produc22 tion facilities and supporting infrastructure; or 

23 (B) production payments through a reverse 

24 auction in accordance with paragraph (4). 

25 (4) REVERSE AUCTION.— 


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1 (A) IN GENERAL.—In providing incentives 

2 under this subsection, the Secretary shall— 

3 (i) issue regulations under which pro4 ducers of fuel from cellulosic biomass may 

5 bid for production payments under para6 graph (3)(B); and 

7 (ii) solicit bids from producers of dif8 ferent classes of transportation fuel, as the 

9 Secretary determines to be appropriate. 

10 (B) REQUIREMENT.—The rules under sub11 paragraph (A) shall require that incentives be 

12 provided to the producers that submit the low13 est bid (in terms of cents per gallon) for each 

14 class of transportation fuel from which the Sec15 retary solicits a bid. 

16 (b) ADVANCED TECHNOLOGY VEHICLES MANUFAC17 TURING INCENTIVE PROGRAM.— 

18 (1) DEFINITIONS.—In this subsection: 

19 (A) ADJUSTED FUEL ECONOMY.—The 

20 term ‘‘adjusted fuel economy’’ means the aver21 age fuel economy of a manufacturer for all light 

22 duty motor vehicles produced by the manufac23 turer, adjusted such that the fuel economy of 

24 each vehicle that qualifies for a credit shall be 

25 considered to be equal to the average fuel econVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 omy for the weight class of the vehicle for 

2 model year 2002. 

3 (B) ADVANCED LEAN BURN TECHNOLOGY

4 MOTOR VEHICLE.—The term ‘‘advanced lean 

5 burn technology motor vehicle’’ means a pas6 senger automobile or a light truck with an in7 ternal combustion engine that— 

8 (i) is designed to operate primarily 

9 using more air than is necessary for com10 plete combustion of the fuel; 

11 (ii) incorporates direct injection; and 

12 (iii) achieves at least 125 percent of 

13 the city fuel economy of vehicles in the 

14 same size class as the vehicle for model 

15 year 2002. 

16 (C) ADVANCED TECHNOLOGY VEHICLE.— 

17 The term ‘‘advanced technology vehicle’’ means 

18 a light duty motor vehicle that— 

19 (i) is a hybrid motor vehicle or an ad20 vanced lean burn technology motor vehicle; 

21 and 

22 (ii) meets— 

23 (I) the Bin 5 Tier II emission 

24 standard established in regulations 

25 issued by the Administrator of the 


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1 Environmental Protection Agency 

2 under section 202(i) of the Clean Air 

3 Act (42 U.S.C. 7521(i)), or a lower4 numbered Bin emission standard; 

5 (II) any new emission standard 

6 for fine particulate matter prescribed 

7 by the Administrator under that Act 

8 (42 U.S.C. 7401 et seq.); and 

9 (III) at least 125 percent of the 

10 base year city fuel economy for the 

11 weight class of the vehicle. 

12 (D) ENGINEERING INTEGRATION COSTS.— 

13 The term ‘‘engineering integration costs’’ in14 cludes the cost of engineering tasks relating 

15 to— 

16 (i) incorporating qualifying compo17 nents into the design of advanced tech18 nology vehicles; and 

19 (ii) designing new tooling and equip20 ment for production facilities that produce 

21 qualifying components or advanced tech22 nology vehicles. 

23 (E) HYBRID MOTOR VEHICLE.—The term 

24 ‘‘hybrid motor vehicle’’ means a motor vehicle 


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1 that draws propulsion energy from onboard 

2 sources of stored energy that are— 

3 (i) an internal combustion or heat en4 gine using combustible fuel; and 

5 (ii) a rechargeable energy storage sys6 tem. 

7 (F) QUALIFYING COMPONENTS.—The term 

8 ‘‘qualifying components’’ means components 

9 that the Secretary determines to be— 

10 (i) specially designed for advanced 

11 technology vehicles; and 

12 (ii) installed for the purpose of meet13 ing the performance requirements of ad14 vanced technology vehicles. 

15 (2) MANUFACTURER FACILITY CONVERSION

16 AWARDS.—The Secretary shall provide facility con17 version funding awards under this subsection to 

18 automobile manufacturers and component suppliers 

19 to pay not more than 30 percent of the cost of— 

20 (A) reequipping or expanding an existing 

21 manufacturing facility in the United States to 

22 produce— 

23 (i) qualifying advanced technology ve24 hicles; or 

25 (ii) qualifying components; and 


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1 (B) engineering integration performed in 

2 the United States of qualifying vehicles and 

3 qualifying components. 

4 (3) PERIOD OF AVAILABILITY.—An award 

5 under paragraph (2) shall apply to— 

6 (A) facilities and equipment placed in serv7 ice before December 30, 2017; and 

8 (B) engineering integration costs incurred 

9 during the period beginning on the date of en10 actment of this Act and ending on December 

11 30, 2017. 

12 (4) IMPROVEMENT.—The Secretary shall issue 

13 regulations that require that, in order for an auto14 mobile manufacturer to be eligible for an award 

15 under this subsection during a particular year, the 

16 adjusted average fuel economy of the manufacturer 

17 for light duty vehicles produced by the manufacturer 

18 during the most recent year for which data are 

19 available shall be not less than the average fuel 

20 economy for all light duty motor vehicles of the man21 ufacturer for model year 2002. 

22 SEC. 209. PRODUCTION INCENTIVES FOR CELLULOSIC 

23 BIOFUELS. 

24 Section 942(f) of the Energy Policy Act of 2005 (42 

25 U.S.C. 16251(f)) is amended by striking ‘‘$250,000,000’’ 


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1 and inserting ‘‘$200,000,000 for each of fiscal years 2007 

2 through 2011’’. 

3 TITLE III—FEDERAL PROGRAMS 

4 FOR THE CONSERVATION OF 

5 NATURAL GAS 

6 SEC. 301. RENEWABLE PORTFOLIO STANDARD. 

7 (a) IN GENERAL.—Title VI of the Public Utility Reg8 ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 

9 amended by adding at the end the following: 

10 ‘‘SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD. 

11 ‘‘(a) RENEWABLE ENERGY REQUIREMENT.— 

12 ‘‘(1) IN GENERAL.—Each electric utility that 

13 sells electricity to electric consumers shall obtain a 

14 percentage of the base amount of electricity it sells 

15 to electric consumers in any calendar year from new 

16 renewable energy or existing renewable energy. The 

17 percentage obtained in a calendar year shall not be 

18 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 

19 ‘‘(2) MEANS OF COMPLIANCE.—An electric util20 ity shall meet the requirements of paragraph (1) 

21 by— 


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1 ‘‘(A) generating electric energy using new 

2 renewable energy or existing renewable energy; 

3 ‘‘(B) purchasing electric energy generated 

4 by new renewable energy or existing renewable 

5 energy; 

6 ‘‘(C) purchasing renewable energy credits 

7 issued under subsection (b); or 

8 ‘‘(D) a combination of the foregoing. 

9 ‘‘(b) RENEWABLE ENERGY CREDIT TRADING PRO10 GRAM.— 

11 ‘‘(1) IN GENERAL.—Not later than January 1, 

12 2007, the Secretary shall establish a renewable en13 ergy credit trading program to permit an electric 

14 utility that does not generate or purchase enough 

15 electric energy from renewable energy to meet its ob16 ligations under subsection (a)(1) to satisfy such re17 quirements by purchasing sufficient renewable en18 ergy credits. 

19 ‘‘(2) ADMINISTRATION.—As part of the pro20 gram, the Secretary shall— 

21 ‘‘(A) issue renewable energy credits to gen22 erators of electric energy from new renewable 

23 energy; 

24 ‘‘(B) sell renewable energy credits to elec25 tric utilities at the rate of 1.5 cents per kiloVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 watt-hour (as adjusted for inflation under sub2 section (g)); 

3 ‘‘(C) ensure that a kilowatt hour, including 

4 the associated renewable energy credit, shall be 

5 used only once for purposes of compliance with 

6 this section; and 

7 ‘‘(D) allow double credits for generation 

8 from facilities on Indian land, and triple credits 

9 for generation from small renewable distributed 

10 generators (meaning those no larger than 1 

11 megawatt). 

12 ‘‘(3) DURATION.—Credits under paragraph 

13 (2)(A) may only be used for compliance with this 

14 section for 3 years from the date issued. 

15 ‘‘(4) TRANSFERS.—An electric utility that holds 

16 credits in excess of the amount needed to comply 

17 with subsection (a) may transfer such credits to an18 other electric utility in the same utility holding com19 pany system. 

20 ‘‘(5) EASTERN INTERCONNECT.—In the case of 

21 a retail electric supplier that is a member of a power 

22 pool located in the Eastern Interconnect and that is 

23 subject to a State renewable portfolio standard pro24 gram that provides for compliance primarily through 

25 the acquisition of certificates or credits in lieu of the 


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1 direct acquisition of renewable power, the Secretary 

2 shall issue renewable energy credits in an amount 

3 that corresponds to the kilowatt-hour obligation rep4 resented by the State certificates and credits issued 

5 pursuant to the State program to the extent the 

6 State certificates and credits are associated with re7 newable resources eligible under this section. 

8 ‘‘(c) ENFORCEMENT.— 

9 ‘‘(1) CIVIL PENALTIES.—Any electric utility 

10 that fails to meet the renewable energy requirements 

11 of subsection (a) shall be subject to a civil penalty. 

12 ‘‘(2) AMOUNT OF PENALTY.—The amount of 

13 the civil penalty shall be determined by multiplying 

14 the number of kilowatt-hours of electric energy sold 

15 to electric consumers in violation of subsection (a) 

16 by the greater of 1.5 cents (adjusted for inflation 

17 under subsection (g)) or 200 percent of the average 

18 market value of renewable energy credits during the 

19 year in which the violation occurred. 

20 ‘‘(3) MITIGATION OR WAIVER.—The Secretary 

21 may mitigate or waive a civil penalty under this sub22 section if the electric utility was unable to comply 

23 with subsection (a) for reasons outside of the rea24 sonable control of the utility. The Secretary shall re25 duce the amount of any penalty determined under 


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1 paragraph (2) by an amount paid by the electric 

2 utility to a State for failure to comply with the re3 quirement of a State renewable energy program if 

4 the State requirement is greater than the applicable 

5 requirement of subsection (a). 

6 ‘‘(4) PROCEDURE FOR ASSESSING PENALTY.— 

7 The Secretary shall assess a civil penalty under this 

8 subsection in accordance with the procedures pre9 scribed by section 333(d) of the Energy Policy and 

10 Conservation Act of 1954 (42 U.S.C. 6303). 

11 ‘‘(d) STATE RENEWABLE ENERGY ACCOUNT PRO12 GRAM.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall estab14 lish, not later than December 31, 2008, a State re15 newable energy account program. 

16 ‘‘(2) DEPOSITS.—All money collected by the 

17 Secretary from the sale of renewable energy credits 

18 and the assessment of civil penalties under this sec19 tion shall be deposited into the renewable energy ac20 count established pursuant to this subsection. The 

21 State renewable energy account shall be held by the 

22 Secretary and shall not be transferred to the Treas23 ury Department. 

24 ‘‘(3) USE.—Proceeds deposited in the State re25 newable energy account shall be used by the SecVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 retary, subject to appropriations, for a program to 

2 provide grants to the State agency responsible for 

3 developing State energy conservation plans under 

4 section 362 of the Energy Policy and Conservation 

5 Act (42 U.S.C. 6322) for the purposes of promoting 

6 renewable energy production, including programs 

7 that promote technologies that reduce the use of 

8 electricity at customer sites such as solar water 

9 heating. 

10 ‘‘(4) ADMINISTRATION.—The Secretary may 

11 issue guidelines and criteria for grants awarded 

12 under this subsection. State energy offices receiving 

13 grants under this section shall maintain such 

14 records and evidence of compliance as the Secretary 

15 may require. 

16 ‘‘(5) PREFERENCE.—In allocating funds under 

17 this program, the Secretary shall give preference— 

18 ‘‘(A) to States in regions which have a dis19 proportionately small share of economically sus20 tainable renewable energy generation capacity; 

21 and 

22 ‘‘(B) to State programs to stimulate or en23 hance innovative renewable energy technologies. 


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1 ‘‘(e) RULES.—The Secretary shall issue rules imple2 menting this section not later than 1 year after the date 

3 of enactment of this section. 

4 ‘‘(f) EXEMPTIONS.—This section shall not apply in 

5 any calendar year to an electric utility— 

6 ‘‘(1) that sold less than 4,000,000 megawatt7 hours of electric energy to electric consumers during 

8 the preceding calendar year; or 

9 ‘‘(2) in Hawaii. 

10 ‘‘(g) INFLATION ADJUSTMENT.—Not later than De11 cember 31 of each year beginning in 2008, the Secretary 

12 shall adjust for inflation the price of a renewable energy 

13 credit under subsection (b)(2)(B) and the amount of the 

14 civil penalty per kilowatt-hour under subsection (c)(2). 

15 ‘‘(h) STATE PROGRAMS.—Nothing in this section 

16 shall diminish any authority of a State or political subdivi17 sion thereof to adopt or enforce any law or regulation re18 specting renewable energy, but, except as provided in sub19 section (c)(3), no such law or regulation shall relieve any 

20 person of any requirement otherwise applicable under this 

21 section. The Secretary, in consultation with States having 

22 such renewable energy programs, shall, to the maximum 

23 extent practicable, facilitate coordination between the Fed24 eral program and State programs. 

25 ‘‘(i) RECOVERY OF COSTS.— 


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1 ‘‘(1) IN GENERAL.—The Commission shall issue 

2 and enforce such regulations as are necessary to en3 sure that an electric utility recovers all prudently in4 curred costs associated with compliance with this 

5 section. 

6 ‘‘(2) APPLICABLE LAW.—A regulation under 

7 paragraph (1) shall be enforceable in accordance 

8 with the provisions of law applicable to enforcement 

9 of regulations under the Federal Power Act (16 

10 U.S.C. 791a et seq.). 

11 ‘‘(j) DEFINITIONS.—In this section: 

12 ‘‘(1) BASE AMOUNT OF ELECTRICITY.—The 

13 term ‘base amount of electricity’ means the total 

14 amount of electricity sold by an electric utility to 

15 electric consumers in a calendar year, excluding— 

16 ‘‘(A) electricity generated by a hydro17 electric facility (including a pumped storage fa18 cility but excluding incremental hydropower); 

19 and 

20 ‘‘(B) electricity generated through the in21 cineration of municipal solid waste. 

22 ‘‘(2) DISTRIBUTED GENERATION FACILITY.— 

23 The term ‘distributed generation facility’ means a 

24 facility at a customer site. 


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1 ‘‘(3) EXISTING RENEWABLE ENERGY.—The 

2 term ‘existing renewable energy’ means, except as 

3 provided in paragraph (7)(B), electric energy gen4 erated at a facility (including a distributed genera5 tion facility) placed in service prior to January 1, 

6 2003, from solar, wind, or geothermal energy, ocean 

7 energy, biomass (as defined in section 203(a) of the 

8 Energy Policy Act of 2005), or landfill gas. 

9 ‘‘(4) GEOTHERMAL ENERGY.—The term ‘geo10 thermal energy’ means energy derived from a geo11 thermal deposit (within the meaning of section 

12 613(e)(2) of the Internal Revenue Code of 1986). 

13 ‘‘(5) INCREMENTAL GEOTHERMAL PRODUC14 TION.— 

15 ‘‘(A) IN GENERAL.—The term ‘incremental 

16 geothermal production’ means for any year the 

17 excess of— 

18 ‘‘(i) the total kilowatt hours of elec19 tricity produced from a facility (including a 

20 distributed generation facility) using geo21 thermal energy; over 

22 ‘‘(ii) the average annual kilowatt 

23 hours produced at such facility for 5 of the 

24 previous 7 calendar years before the date 

25 of enactment of this section after elimiVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 nating the highest and the lowest kilowatt 

2 hour production years in such 7-year pe3 riod. 

4 ‘‘(B) SPECIAL RULE.—A facility described 

5 in subparagraph (A) that was placed in service 

6 at least 7 years before the date of enactment of 

7 this section shall commencing with the year in 

8 which such date of enactment occurs, reduce 

9 the amount calculated under subparagraph 

10 (A)(ii) each year, on a cumulative basis, by the 

11 average percentage decrease in the annual kilo12 watt hour production for the 7-year period de13 scribed in subparagraph (A)(ii) with such cu14 mulative sum not to exceed 30 percent. 

15 ‘‘(6) INCREMENTAL HYDROPOWER.—The term 

16 ‘incremental hydropower’ means additional energy 

17 generated as a result of efficiency improvements or 

18 capacity additions made on or after the date of en19 actment of this section or the effective date of an ex20 isting applicable State renewable portfolio standard 

21 program at a hydroelectric facility that was placed 

22 in service before that date. The term does not in23 clude additional energy generated as a result of 

24 operational changes not directly associated with effi25 ciency improvements or capacity additions. EffiVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 ciency improvements and capacity additions shall be 

2 measured on the basis of the same water flow infor3 mation used to determine a historic average annual 

4 generation baseline for the hydroelectric facility and 

5 certified by the Secretary or the Federal Energy 

6 Regulatory Commission. 

7 ‘‘(7) NEW RENEWABLE ENERGY.—The term 

8 ‘new renewable energy’ means— 

9 ‘‘(A) electric energy generated at a facility 

10 (including a distributed generation facility) 

11 placed in service on or after January 1, 2003, 

12 from— 

13 ‘‘(i) solar, wind, or geothermal energy 

14 or ocean energy; 

15 ‘‘(ii) biomass (as defined in section 

16 203(b) of the Energy Policy Act of 2005 

17 (42 U.S.C. 15852(b)); 

18 ‘‘(iii) landfill gas; or 

19 ‘‘(iv) incremental hydropower; and 

20 ‘‘(B) for electric energy generated at a fa21 cility (including a distributed generation facil22 ity) placed in service prior to the date of enact23 ment of this section— 

24 ‘‘(i) the additional energy above the 

25 average generation in the 3 years preVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 ceding the date of enactment of this sec2 tion at the facility from— 

3 ‘‘(I) solar or wind energy or 

4 ocean energy; 

5 ‘‘(II) biomass (as defined in sec6 tion 203(b) of the Energy Policy Act 

7 of 2005 (42 U.S.C. 15852(b)); 

8 ‘‘(III) landfill gas; or 

9 ‘‘(IV) incremental hydropower. 

10 ‘‘(ii) incremental geothermal produc11 tion. 

12 ‘‘(8) OCEAN ENERGY.—The term ‘ocean energy’ 

13 includes current, wave, tidal, and thermal energy. 

14 ‘‘(k) SUNSET.—This section expires on December 31, 

15 2030.’’. 

16 (b) TABLE OF CONTENTS AMENDMENT.—The table 

17 of contents of the Public Utility Regulatory Policies Act 

18 of 1978 (16 U.S.C. prec. 2601) is amended by adding at 

19 the end of the items relating to title VI the following: 

‘‘Sec. 610. Federal renewable portfolio standard.’’. 

20 SEC. 302. FEDERAL REQUIREMENT TO PURCHASE ELEC21 TRICITY GENERATED BY RENEWABLE EN22 ERGY. 

23 Section 203 of the Energy Policy Act of 2005 (42 

24 U.S.C. 15852) is amended by striking subsection (a) and 

25 inserting the following: 


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1 ‘‘(a) REQUIREMENT.—The President, acting through 

2 the Secretary, shall ensure that, of the total quantity of 

3 electric energy the Federal Government consumes during 

4 any fiscal year, the following amounts shall be renewable 

5 energy: 

6 ‘‘(1) Not less than 5 percent in each of fiscal 

7 years 2008 and 2009. 

8 ‘‘(2) Not less than 7.5 percent in each of fiscal 

9 years 2010 through 2012. 

10 ‘‘(3) Not less than 10 percent in fiscal years 

11 2013 and each fiscal year thereafter.’’. 

12 TITLE IV—GENERAL ENERGY 

13 EFFICIENCY PROGRAMS 

14 SEC. 401. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

15 (a) RETENTION OF SAVINGS.—Section 546(c) of the 

16 National Energy Conservation Policy Act (42 U.S.C. 

17 8256(c)) is amended by striking paragraph (5). 

18 (b) FINANCING FLEXIBILITY.—Section 801(a)(2) of 

19 the National Energy Conservation Policy Act (42 U.S.C. 

20 8287(a)(2)) is amended by adding at the end the fol21 lowing: 

22 ‘‘(E) SEPARATE CONTRACTS.—In carrying 

23 out a contract under this title, a Federal agency 

24 may— 


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1 ‘‘(i) enter into a separate contract for 

2 energy services and conservation measures 

3 under the contract; and 

4 ‘‘(ii) provide all or part of the financ5 ing necessary to carry out the contract.’’. 

6 (c) DEFINITION OF ENERGY SAVINGS.—Section 

7 804(2) of the National Energy Conservation Policy Act 

8 (42 U.S.C. 8287c(2)) is amended— 

9 (1) by redesignating subparagraphs (A), (B), 

10 and (C) as clauses (i), (ii), and (iii), respectively, 

11 and indenting appropriately; 

12 (2) by striking ‘‘means a reduction’’ and insert13 ing ‘‘means— 

14 ‘‘(A) a reduction’’; 

15 (3) by striking the period at the end and insert16 ing a semicolon; and 

17 (4) by adding at the end the following: 

18 ‘‘(B) the increased efficient use of an exist19 ing energy source by cogeneration or heat re20 covery, and installation of renewable energy sys21 tems; 

22 ‘‘(C) the sale or transfer of electrical or 

23 thermal energy generated on-site, but in excess 

24 of Federal needs, to utilities or non-Federal en25 ergy users; and 


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1 ‘‘(D) the increased efficient use of existing 

2 water sources in interior or exterior applica3 tions.’’. 

4 (d) ENERGY AND COST SAVINGS IN NONBUILDING

5 APPLICATIONS.— 

6 (1) DEFINITIONS.—In this subsection: 

7 (A) NONBUILDING APPLICATION.—The 

8 term ‘‘nonbuilding application’’ means— 

9 (i) any class of vehicles, devices, or 

10 equipment that is transportable under the 

11 power of the applicable vehicle, device, or 

12 equipment by land, sea, or air and that 

13 consumes energy from any fuel source for 

14 the purpose of— 

15 (I) that transportation; or 

16 (II) maintaining a controlled en17 vironment within the vehicle, device, 

18 or equipment; and 

19 (ii) any federally-owned equipment 

20 used to generate electricity or transport 

21 water. 

22 (B) SECONDARY SAVINGS.— 

23 (i) IN GENERAL.—The term ‘‘sec24 ondary savings’’ means additional energy 

25 or cost savings that are a direct conVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 sequence of the energy savings that result 

2 from the energy efficiency improvements 

3 that were financed and implemented pur4 suant to an energy savings performance 

5 contract. 

6 (ii) INCLUSIONS.—The term ‘‘sec7 ondary savings’’ includes— 

8 (I) energy and cost savings that 

9 result from a reduction in the need 

10 for fuel delivery and logistical support; 

11 (II) personnel cost savings and 

12 environmental benefits; and 

13 (III) in the case of electric gen14 eration equipment, the benefits of in15 creased efficiency in the production of 

16 electricity, including revenues received 

17 by the Federal Government from the 

18 sale of electricity so produced. 

19 (2) STUDY.— 

20 (A) IN GENERAL.—As soon as practicable 

21 after the date of enactment of this Act, the Sec22 retary and the Secretary of Defense shall joint23 ly conduct, and submit to Congress and the 

24 President a report of, a study of the potential 

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1 tracts to reduce energy consumption and pro2 vide energy and cost savings in nonbuilding ap3 plications. 

4 (B) REQUIREMENTS.—The study under 

5 this subsection shall include— 

6 (i) an estimate of the potential energy 

7 and cost savings to the Federal Govern8 ment, including secondary savings and 

9 benefits, from increased efficiency in non10 building applications; 

11 (ii) an assessment of the feasibility of 

12 extending the use of energy savings per13 formance contracts to nonbuilding applica14 tions, including an identification of any 

15 regulatory or statutory barriers to such 

16 use; and 

17 (iii) such recommendations as the 

18 Secretary and Secretary of Defense deter19 mine to be appropriate. 

20 SEC. 402. DEPLOYMENT OF NEW TECHNOLOGIES FOR 

21 HIGH-EFFICIENCY CONSUMER PRODUCTS. 

22 (a) DEFINITIONS.—In this section: 

23 (1) ENERGY SAVINGS.—The term ‘‘energy sav24 ings’’ means megawatt-hours of electricity or million 

25 British thermal units of natural gas saved by a 


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1 product, in comparison to projected energy consump2 tion under the energy efficiency standard applicable 

3 to the product. 

4 (2) HIGH-EFFICIENCY CONSUMER PRODUCT.— 

5 The term ‘‘high-efficiency consumer product’’ means 

6 a covered product to which an energy conservation 

7 standard applies under section 325 of the Energy 

8 Policy and Conservation Act (42 U.S.C. 6295), if 

9 the energy efficiency of the product exceeds the en10 ergy efficiency required under the standard. 

11 (b) FINANCIAL INCENTIVES PROGRAM.—Effective 

12 beginning October 1, 2006, the Secretary shall competi13 tively award financial incentives under this section for the 

14 manufacture of high-efficiency consumer products. 

15 (c) REQUIREMENTS.— 

16 (1) IN GENERAL.—The Secretary shall make 

17 awards under this section to manufacturers of high18 efficiency consumer products, based on the bid of 

19 each manufacturer in terms of dollars per megawatt20 hour or million British thermal units saved. 

21 (2) ACCEPTANCE OF BIDS.—In making awards 

22 under this section, the Secretary shall— 

23 (A) solicit bids for reverse auction from 

24 appropriate manufacturers, as determined by 

25 the Secretary; and 


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1 (B) award financial incentives to the man2 ufacturers that submit the lowest bids that 

3 meet the requirements established by the Sec4 retary. 

5 (d) FORMS OF AWARDS.—An award for a high-effi6 ciency consumer product under this section shall be in the 

7 form of a lump sum payment in an amount equal to the 

8 product obtained by multiplying— 

9 (1) the amount of the bid by the manufacturer 

10 of the high-efficiency consumer product; and 

11 (2) the energy savings during the projected use12 ful life of the high-efficiency consumer product, not 

13 to exceed 10 years, as determined under regulations 

14 issued by the Secretary. 

15 SEC. 403. NATIONAL MEDIA CAMPAIGN TO DECREASE OIL 

16 AND NATURAL GAS CONSUMPTION. 

17 (a) IN GENERAL.—The Secretary, acting through the 

18 Assistant Secretary for Energy Efficiency and Renewable 

19 Energy (referred to in this section as the ‘‘Secretary’’), 

20 shall develop and conduct a national media campaign for 

21 the purpose of decreasing oil and natural gas consumption 

22 in the United States over the next decade. 

23 (b) CONTRACT WITH ENTITY.—The Secretary shall 

24 carry out subsection (a) directly or through— 


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1 (1) competitively bid contracts with 1 or more 

2 nationally recognized media firms for the develop3 ment and distribution of monthly television, radio, 

4 and newspaper public service announcements; or 

5 (2) collective agreements with 1 or more nation6 ally recognized institutes, businesses, or nonprofit 

7 organizations for the funding, development, and dis8 tribution of monthly television, radio, and newspaper 

9 public service announcements. 

10 (c) USE OF FUNDS.— 

11 (1) IN GENERAL.—Amounts made available to 

12 carry out this section shall be used for the following: 

13 (A) ADVERTISING COSTS.— 

14 (i) The purchase of media time and 

15 space. 

16 (ii) Creative and talent costs. 

17 (iii) Testing and evaluation of adver18 tising. 

19 (iv) Evaluation of the effectiveness of 

20 the media campaign. 

21 (v) The negotiated fees for the win22 ning bidder on requests from proposals 

23 issued either by the Secretary for purposes 

24 otherwise authorized in this section. 


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1 (vi) Entertainment industry outreach, 

2 interactive outreach, media projects and 

3 activities, public information, news media 

4 outreach, and corporate sponsorship and 

5 participation. 

6 (B) ADMINISTRATIVE COSTS.—Operational 

7 and management expenses. 

8 (2) LIMITATIONS.—In carrying out this section, 

9 the Secretary shall allocate not less than 85 percent 

10 of funds made available under subsection (e) for 

11 each fiscal year for the advertising functions speci12 fied under paragraph (1)(A). 

13 (d) REPORTS.—The Secretary shall annually submit 

14 to Congress a report that describes— 

15 (1) the strategy of the national media campaign 

16 and whether specific objectives of the campaign were 

17 accomplished, including— 

18 (A) determinations concerning the rate of 

19 change of oil and natural gas consumption, in 

20 both absolute and per capita terms; and 

21 (B) an evaluation that enables consider22 ation whether the media campaign contributed 

23 to reduction of oil and natural gas consump24 tion; 


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1 (2) steps taken to ensure that the national 

2 media campaign operates in an effective and effi3 cient manner consistent with the overall strategy 

4 and focus of the campaign; 

5 (3) plans to purchase advertising time and 

6 space; 

7 (4) policies and practices implemented to ensure 

8 that Federal funds are used responsibly to purchase 

9 advertising time and space and eliminate the poten10 tial for waste, fraud, and abuse; and 

11 (5) all contracts or cooperative agreements en12 tered into with a corporation, partnership, or indi13 vidual working on behalf of the national media cam14 paign. 

15 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $5,000,000 for each of fiscal years 2006 through 2010. 

18 SEC. 404. ENERGY EFFICIENCY RESOURCE PROGRAMS. 

19 (a) ELECTRIC UTILITY PROGRAMS.—Section 111 of 

20 the Public Utilities Regulatory Policy Act of 1978 (16 

21 U.S.C. 2621) is amended by adding at the end the fol22 lowing: 

23 ‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.— 

24 ‘‘(1) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) DEMAND BASELINE.—The term ‘de2 mand baseline’ means the baseline determined 

3 by the Secretary for an appropriate period pre4 ceding the implementation of an energy effi5 ciency resource program. 

6 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO7 GRAMS.—The term ‘energy efficiency resource 

8 program’ means an energy efficiency or other 

9 demand reduction program that is designed to 

10 reduce annual electricity consumption or peak 

11 demand of consumers served by an electric util12 ity by a percentage of the demand baseline of 

13 the utility that is equal to not less than 0.75 

14 percent of the number of years during which 

15 the program is in effect. 

16 ‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.— 

17 ‘‘(A) PUBLIC HEARING.—As soon as prac18 ticable after the date of enactment of this sub19 section, but not later than 3 years after that 

20 date, each State regulatory authority (with re21 spect to each electric utility over which the 

22 State has ratemaking authority) and each non23 regulated electric utility shall, after notice, con24 duct a public hearing on the benefits and feasiVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 bility of carrying out an energy efficiency re2 source program. 

3 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO4 GRAM.—A State regulatory authority or non5 regulated utility shall carry out an energy effi6 ciency resource program if, on the basis of a 

7 hearing under subparagraph (A), the State reg8 ulatory authority or nonregulated utility deter9 mines that the program would— 

10 ‘‘(i) benefit end-use customers; 

11 ‘‘(ii) be cost-effective based on total 

12 resource cost; 

13 ‘‘(iii) serve the public welfare; and 

14 ‘‘(iv) be feasible to carry out. 

15 ‘‘(3) IMPLEMENTATION.— 

16 ‘‘(A) STATE REGULATORY AUTHORITIES.— 

17 If a State regulatory authority makes a deter18 mination under paragraph (2)(B), the State 

19 regulatory authority shall— 

20 ‘‘(i) require each electric utility over 

21 which the State has ratemaking authority 

22 to carry out an energy efficiency resource 

23 program; and 

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1 rying out the energy efficiency resource 

2 program. 

3 ‘‘(B) NONREGULATED ELECTRIC UTILI4 TIES.—If a nonregulated electric utility makes 

5 a determination under paragraph (2)(B), the 

6 utility shall carry out an energy efficiency re7 source program. 

8 ‘‘(4) UPDATING REGULATIONS.—A State regu9 latory authority or nonregulated utility may update 

10 periodically a determination under paragraph (2)(B) 

11 to determine whether an energy efficiency resource 

12 program should be— 

13 ‘‘(A) continued; 

14 ‘‘(B) modified; or 

15 ‘‘(C) terminated. 

16 ‘‘(5) EXCEPTION.—Paragraph (2) shall not 

17 apply to a State regulatory authority (or a nonregu18 lated electric utility operating in the State) that 

19 demonstrates to the Secretary that an energy effi20 ciency resource program is in effect in the State.’’. 

21 (b) GAS UTILITIES.—Section 303 of the Public Utili22 ties Regulatory Policy Act of 1978 (15 U.S.C. 3203) is 

23 amended by adding at the end the following: 

24 ‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.— 

25 ‘‘(1) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) DEMAND BASELINE.—The term ‘de2 mand baseline’ means the baseline determined 

3 by the Secretary for an appropriate period pre4 ceding the implementation of an energy effi5 ciency resource program. 

6 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO7 GRAMS.—The term ‘energy efficiency resource 

8 program’ means an energy efficiency or other 

9 demand reduction program that is designed to 

10 reduce annual gas consumption or peak demand 

11 of consumers served by a gas utility by a per12 centage of the demand baseline of the utility 

13 that is equal to not less than 0.75 percent of 

14 the number of years during which the program 

15 is in effect. 

16 ‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.— 

17 ‘‘(A) PUBLIC HEARING.—As soon as prac18 ticable after the date of enactment of this sub19 section, but not later than 3 years after that 

20 date, each State regulatory authority (with re21 spect to each gas utility over which the State 

22 has ratemaking authority) and each nonregu23 lated gas utility shall, after notice, conduct a 

24 public hearing on the benefits and feasibility of 


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1 carrying out an energy efficiency resource pro2 gram. 

3 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO4 GRAM.—A State regulatory authority or non5 regulated utility shall carry out an energy effi6 ciency resource program if, on the basis of a 

7 hearing under subparagraph (A), the State reg8 ulatory authority or nonregulated utility deter9 mines that the program would— 

10 ‘‘(i) benefit end-use customers; 

11 ‘‘(ii) be cost-effective based on total 

12 resource cost; 

13 ‘‘(iii) serve the public welfare; and 

14 ‘‘(iv) be feasible to carry out. 

15 ‘‘(3) IMPLEMENTATION.— 

16 ‘‘(A) STATE REGULATORY AUTHORITIES.— 

17 If a State regulatory authority makes a deter18 mination under paragraph (2)(B), the State 

19 regulatory authority shall— 

20 ‘‘(i) require each gas utility over 

21 which the State has ratemaking authority 

22 to carry out an energy efficiency resource 

23 program; and 

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1 rying out the energy efficiency resource 

2 program. 

3 ‘‘(B) NONREGULATED GAS UTILITIES.—If 

4 a nonregulated gas utility makes a determina5 tion under paragraph (2)(B), the utility shall 

6 carry out an energy efficiency resource pro7 gram. 

8 ‘‘(4) UPDATING REGULATIONS.—A State regu9 latory authority or nonregulated utility may update 

10 periodically a determination under paragraph (2)(B) 

11 to determine whether an energy efficiency resource 

12 program should be— 

13 ‘‘(A) continued; 

14 ‘‘(B) modified; or 

15 ‘‘(C) terminated. 

16 ‘‘(5) EXCEPTION.—Paragraph (2) shall not 

17 apply to a State regulatory authority (or a nonregu18 lated gas utility operating in the State) that dem19 onstrates to the Secretary that an energy efficiency 

20 resource program is in effect in the State.’’. 


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1 TITLE V—ASSISTANCE TO 

2 ENERGY CONSUMERS 

3 SEC. 501. ENERGY EMERGENCY DISASTER RELIEF LOANS 

4 TO SMALL BUSINESS AND AGRICULTURAL 

5 PRODUCERS. 

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘Administrator’’ means the Ad8 ministrator of the Small Business Administration; 

9 and 

10 (2) the term ‘‘small business concern’’ has the 

11 meaning given the term in section 3 of the Small 

12 Business Act (15 U.S.C. 632). 

13 (b) SMALL BUSINESS PRODUCER ENERGY EMER14 GENCY DISASTER LOAN PROGRAM.— 

15 (1) DISASTER LOAN AUTHORITY.—Section 7(b) 

16 of the Small Business Act (15 U.S.C. 636(b)) is 

17 amended by inserting immediately after paragraph 

18 (3) the following: 

19 ‘‘(4) ENERGY DISASTER LOANS.— 

20 ‘‘(A) DEFINITIONS.—In this paragraph— 

21 ‘‘(i) the term ‘base price index’ means 

22 the moving average of the closing unit 

23 price on the New York Mercantile Ex24 change for heating oil, natural gas, gaso25 line, or propane for the 10 days that corVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 respond to the trading days described in 

2 clause (ii) in each of the most recent 2 pre3 ceding years; 

4 ‘‘(ii) the term ‘current price index’ 

5 means the moving average of the closing 

6 unit price on the New York Mercantile Ex7 change, for the 10 most recent trading 

8 days, for contracts to purchase heating oil, 

9 natural gas, gasoline, or propane during 

10 the subsequent calendar month, commonly 

11 known as the ‘front month’; and 

12 ‘‘(iii) the term ‘significant increase’ 

13 means— 

14 ‘‘(I) with respect to the price of 

15 heating oil, natural gas, gasoline, or 

16 propane, any time the current price 

17 index exceeds the base price index by 

18 not less than 40 percent; and 

19 ‘‘(II) with respect to the price of 

20 kerosene, any increase which the Ad21 ministrator, in consultation with the 

22 Secretary of Energy, determines to be 

23 significant. 

24 ‘‘(B) LOAN AUTHORITY.—The Adminis25 trator may make such loans, either directly or 


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1 in cooperation with banks or other lending in2 stitutions through agreements to participate on 

3 an immediate or deferred basis, to assist a 

4 small business concern that has suffered or that 

5 is likely to suffer substantial economic injury on 

6 or after January 1, 2005, as the result of a sig7 nificant increase in the price of heating oil, nat8 ural gas, gasoline, propane, or kerosene occur9 ring on or after January 1, 2005. 

10 ‘‘(C) INTEREST RATE.—Any loan or guar11 antee extended pursuant to this paragraph shall 

12 be made at the same interest rate as economic 

13 injury loans under paragraph (2). 

14 ‘‘(D) MAXIMUM AMOUNT.—No loan may 

15 be made under this paragraph, either directly 

16 or in cooperation with banks or other lending 

17 institutions through agreements to participate 

18 on an immediate or deferred basis, if the total 

19 amount outstanding and committed to the bor20 rower under this subsection would exceed 

21 $1,500,000, unless such borrower constitutes a 

22 major source of employment in its surrounding 

23 area, as determined by the Administrator, in 

24 which case the Administrator, in the discretion 


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1 of the Administrator, may waive the $1,500,000 

2 limitation. 

3 ‘‘(E) DISASTER DECLARATION.—For pur4 poses of assistance under this paragraph— 

5 ‘‘(i) a declaration of a disaster area 

6 based on conditions specified in this para7 graph shall be required, and shall be made 

8 by the President or the Administrator; or 

9 ‘‘(ii) if no declaration has been made 

10 pursuant to clause (i), the Governor of a 

11 State in which a significant increase in the 

12 price of heating oil, natural gas, gasoline, 

13 propane, or kerosene has occurred may 

14 certify to the Administrator that small 

15 business concerns have suffered economic 

16 injury as a result of such increase and are 

17 in need of financial assistance which is not 

18 otherwise available on reasonable terms in 

19 that State, and upon receipt of such cer20 tification, the Administrator may make 

21 such loans as would have been available 

22 under this paragraph if a disaster declara23 tion had been issued. 

24 ‘‘(F) CONVERSION.—Notwithstanding any 

25 other provision of law, loans made under this 


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1 paragraph may be used by a small business 

2 concern described in subparagraph (B) to con3 vert from the use of heating oil, natural gas, 

4 gasoline, propane, or kerosene to a renewable or 

5 alternative energy source, including agriculture 

6 and urban waste, geothermal energy, cogenera7 tion, solar energy, wind energy, or fuel cells.’’. 

8 (2) CONFORMING AMENDMENTS.—Section 3(k) 

9 of the Small Business Act (15 U.S.C. 632(k)) is 

10 amended— 

11 (A) by inserting ‘‘, a significant increase in 

12 the price of heating oil, natural gas, gasoline, 

13 propane, or kerosene,’’ after ‘‘civil disorders’’; 

14 and 

15 (B) by inserting ‘‘other’’ before ‘‘eco16 nomic’’. 

17 (c) AGRICULTURAL PRODUCER EMERGENCY

18 LOANS.— 

19 (1) IN GENERAL.—Section 321(a) of the Con20 solidated Farm and Rural Development Act (7 

21 U.S.C. 1961(a)) is amended— 

22 (A) in the first sentence— 

23 (i) by striking ‘‘aquaculture oper24 ations have’’ and inserting ‘‘aquaculture 

25 operations (i) have’’; and 


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1 (ii) by inserting before ‘‘: Provided,’’ 

2 the following: ‘‘, or (ii)(I) are owned or op3 erated by such an applicant that is also a 

4 small business concern (as defined in sec5 tion 3 of the Small Business Act (15 

6 U.S.C. 632)), and (II) have suffered or are 

7 likely to suffer substantial economic injury 

8 on or after January 1, 2005, as the result 

9 of a significant increase in energy costs or 

10 input costs from energy sources occurring 

11 on or after January 1, 2005, in connection 

12 with an energy emergency declared by the 

13 President or the Secretary’’; 

14 (B) in the third sentence, by inserting be15 fore the period at the end the following: ‘‘or by 

16 an energy emergency declared by the President 

17 or the Secretary’’; and 

18 (C) in the fourth sentence— 

19 (i) by striking ‘‘or natural disaster’’ 

20 each place that term appears and inserting 

21 ‘‘, natural disaster, or energy emergency’’; 

22 and 

23 (ii) by inserting ‘‘or declaration’’ after 

24 ‘‘emergency designation’’. 


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1 (2) FUNDING.—Funds available on the date of 

2 enactment of this Act for emergency loans under 

3 subtitle C of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1961 et seq.) shall be avail5 able to carry out the amendments made by para6 graph (1) to meet the needs resulting from natural 

7 disasters. 

8 (d) GUIDELINES AND RULEMAKING.— 

9 (1) GUIDELINES.—Not later than 30 days after 

10 the date of enactment of this Act, the Administrator 

11 and the Secretary of Agriculture shall each issue 

12 guidelines to carry out subsections (b) and (c), re13 spectively, and the amendments made thereby, which 

14 guidelines shall become effective on the date of their 

15 issuance. 

16 (2) RULEMAKING.—Not later than 30 days 

17 after the date of enactment of this Act, the Adminis18 trator, after consultation with the Secretary of En19 ergy, shall promulgate regulations specifying the 

20 method for determining a significant increase in the 

21 price of kerosene under section 7(b)(4)(A)(iii)(II) of 

22 the Small Business Act, as added by this section. 

23 (e) REPORTS.— 

24 (1) SMALL BUSINESS ADMINISTRATION.—Not 

25 later than 12 months after the date on which the 


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1 Administrator issues guidelines under subsection 

2 (d)(1), and annually thereafter, until the date that 

3 is 12 months after the end of the effective period of 

4 section 7(b)(4) of the Small Business Act, as added 

5 by this section, the Administrator shall submit to 

6 the Committee on Small Business and Entrepre7 neurship of the Senate and the Committee on Small 

8 Business of the House of Representatives, a report 

9 on the effectiveness of the assistance made available 

10 under section 7(b)(4) of the Small Business Act, as 

11 added by this section, including— 

12 (A) the number of small business concerns 

13 that applied for a loan under such section 

14 7(b)(4) and the number of those that received 

15 such loans; 

16 (B) the dollar value of those loans; 

17 (C) the States in which the small business 

18 concerns that received such loans are located; 

19 (D) the type of energy that caused the sig20 nificant increase in the cost for the partici21 pating small business concerns; and 

22 (E) recommendations for ways to improve 

23 the assistance provided under such section 

24 7(b)(4), if any. 


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1 (2) DEPARTMENT OF AGRICULTURE.—Not later 

2 than 12 months after the date on which the Sec3 retary of Agriculture issues guidelines under sub4 section (d)(1), and annually thereafter, until the 

5 date that is 12 months after the end of the effective 

6 period of the amendments made to section 321(a) of 

7 the Consolidated Farm and Rural Development Act 

8 (7 U.S.C. 1961(a)) by this section, the Secretary 

9 shall submit to the Committee on Small Business 

10 and Entrepreneurship and the Committee on Agri11 culture, Nutrition, and Forestry of the Senate and 

12 to the Committee on Small Business and the Com13 mittee on Agriculture of the House of Representa14 tives, a report that— 

15 (A) describes the effectiveness of the as16 sistance made available under section 321(a) of 

17 the Consolidated Farm and Rural Development 

18 Act (7 U.S.C. 1961(a)), as amended by this 

19 section; and 

20 (B) contains recommendations for ways to 

21 improve the assistance provided under such sec22 tion 321(a). 

23 (f) EFFECTIVE DATE.— 

24 (1) SMALL BUSINESS.—The amendments made 

25 by subsection (b) shall apply during the 4-year peVerDate Aug 31 2005 19:38 May 07, 2006 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S2747.IS S2747

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1 riod beginning on the earlier of the date on which 

2 guidelines are published by the Administrator under 

3 subsection (d)(1) or 30 days after the date of enact4 ment of this Act, with respect to assistance under 

5 section 7(b)(4) of the Small Business Act, as added 

6 by this section. 

7 (2) AGRICULTURE.—The amendments made by 

8 subsection (c) shall apply during the 4-year period 

9 beginning on the earlier of the date on which guide10 lines are published by the Secretary of Agriculture 

11 under subsection (d)(1) or 30 days after the date of 

12 enactment of this Act, with respect to assistance 

13 under section 321(a) of the Consolidated Farm and 

14 Rural Development Act (7 U.S.C. 1961(a)), as 

15 amended by this section. 

16 SEC. 502. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT 

17 PROGRAM FOR WEATHERIZATION PURPOSES. 

18 (a) IN GENERAL.—Part A of title IV of the Energy 

19 Conservation and Production Act is amended— 

20 (1) by redesignating section 422 (42 U.S.C. 

21 6872) as section 423; and 

22 (2) by inserting after section 421 (42 U.S.C. 

23 6871) the following: 


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1 ‘‘SEC. 422. EFFICIENT AND SAFE EQUIPMENT REPLACE2 MENT PROGRAM FOR WEATHERIZATION PUR3 POSES. 

4 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

5 shall establish, within the Weatherization Assistance Pro6 gram, a program to assist in the replacement of unsafe 

7 or highly inefficient heating and cooling units in low-in8 come households. 

9 ‘‘(b) ADMINISTRATION.— 

10 ‘‘(1) IN GENERAL.—Except as otherwise pro11 vided in this subsection, the Secretary shall admin12 ister the program established under this section in 

13 accordance with this part. 

14 ‘‘(2) EXEMPTION FOR HIGH-EFFICIENCY HEAT15 ING AND COOLING EQUIPMENT EXPENDITURES.— 

16 Assistance for high-efficiency heating and cooling 

17 equipment under this section shall be exempt from 

18 the standards established under section 413(b)(3) 

19 and from section 415(c). 

20 ‘‘(3) IDENTIFICATION OF HEATING AND COOL21 ING SYSTEM UPGRADES.—Assistance for system up22 grades under this section shall be based on a stand23 ard weatherization audit and appropriate diagnostic 

24 procedures in use by the program. 

25 ‘‘(4) WEATHERIZATION OF HOME RECEIVING

26 NEW HEATING OR COOLING SYSTEM.—Assistance 


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1 may be perceived for a home receiving a new heating 

2 or cooling system under this section regardless of 

3 whether the home is fully weatherized in the year 

4 that the home received a new heating system. 

5 ‘‘(5) FUEL.—The Secretary shall make no rule 

6 prohibiting a grantee from installing high-efficiency 

7 equipment that uses a fuel (including a renewable 

8 fuel) most likely to result in reliable supply and the 

9 lowest practicable energy bills, regardless of the fuel 

10 previously used by the household. 

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary to carry 

13 out this section— 

14 ‘‘(1) $40,000,000 for fiscal year 2006; 

15 ‘‘(2) $50,000,000 for fiscal year 2007; and 

16 ‘‘(3) $60,000,000 for fiscal year 2008.’’. 

17 (b) TABLE OF CONTENTS AMENDMENT.—The table 

18 of contents of the Energy Conservation and Production 

19 Act (42 U.S.C. prec. 6901) is amended— 

20 (1) by redesignating the item relating to section 

21 422 as an item relating to section 423; and 

22 (2) by inserting after the item relating to sec23 tion 421 the following: 

‘‘Sec. 422. Efficient and safe equipment program.’’. 

Æ 


sroberts on PROD1PC70 with BILLS