79–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 111–185 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2454) TO CREATE 

CLEAN ENERGY JOBS, ACHIEVE ENERGY INDEPENDENCE, REDUCE 

GLOBAL WARMING POLLUTION AND TRANSITION TO A CLEAN ENERGY 

ECONOMY 

JUNE 26, 2009 (legislative day of June 25), 2009.—Referred to the House Calendar 

and ordered to be printed 

Ms. MATSUI, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany 587] 

The Committee on Rules, having had under consideration House 

Resolution 587, by a record vote of 7 to 3, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 2454, the 

‘‘American Clean Energy and Security Act of 2009,’’ under a structured rule. The resolution provides three hours of debate with 2 

and one half hours to be equally divided and controlled by the chair 

and ranking minority member of the Committee on Energy and 

Commerce and 30 minutes to be equally divided and controlled by 

the chair and ranking minority member of the Committee on Ways 

and Means. The resolution waives all points of order against consideration of the bill except for clauses 9 and 10 of rule XXI. 

The resolution provides that, in lieu of the amendment recommended by the Committee on Energy and Commerce now printed in the bill, an amendment in the nature of a substitute consisting of the text of H.R. 2998, modified by the amendment printed in part A of this report, shall be considered as adopted. The resolution waives all points of order against the bill, as amended. This 

waiver does not affect the point of order available under clause 9 

of rule XXI (regarding earmark disclosure). The resolution provides 

that the bill, as amended, shall be considered as read. 

The resolution makes in order the further amendment in the nature of a substitute printed in part B of the report of the Committee on Rules, if offered by Representative Forbes of Virginia or 

his designee, which shall be in order without intervention of any 

point of order except those arising under clause 9 or 10 of rule XXI, 


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shall be considered as read, and shall be separately debatable for 

30 minutes equally divided and controlled by the proponent and an 

opponent. The resolution provides one motion to recommit with or 

without instructions. 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the bill (except for clauses 9 and 10 of rule XXI) and all points 

of order against the bill, as amended, the Committee is not aware 

of any points of order. The waivers of all points of order are prophylactic. 

COMMITTEE VOTES

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

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

printed below: 

Rules Committee record vote No. 157 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment in the nature of a substitute by Rep. 

Boehner (OH), #40, which would strike all after the enacting clause 

and insert the text of H.R. 2846, the ‘‘American Energy Act,’’ as introduced in the 111th Congress. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 158 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion By: Mr. Dreier. 

Summary of motion: To make in order en bloc the following 

amendments by Rep. Barton (TX) to be separately debatable for 10 

minutes each: #212, which would strike the cap and trade title; allows for the construction of new coal and natural gas plants with 

certain regulatory standards, #213, which would direct the Administrator, in consultation with the Secretary of Energy, to annually 

prepare and certify a report to Congress on the average retail price 

of gasoline in the United States. If the Administrator determines 

that the average retail price of gasoline (all grades) sold to retail 

customers in the United States during the prior year exceeds $5 

per gallon, including taxes (in 2009 dollars), as a result of implementation of this Act, the provisions of this Act shall cease to be 

effective, #214, which include nuclear energy as a qualifying RES 

source, and #215, which would include carbon-based fuel with carbon sequestration or conversion as a qualifying RES source. 

Results: Defeated 3–7. 

Vote by Member: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 


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Rules Committee record vote No. 159 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion By: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Kucinich (OH), #165, which 

would reduce emission allowances by a third each year. 

Results: Defeated 3–7. 

Vote by Member: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 160 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. DeFazio (OR), Rep. Kucinich 

(OH), and Rep. Stark (CA), #174, which would strike the EPA’s authority to list a greenhouse gas as an air pollutant under section 

108 of the Clean Air Act. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 161 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Maffei (NY), #139, which would 

provide that hydropower, other than that defined in the bill as 

qualified hydropower, shall receive a credit worth 50% towards the 

renewable electricity standard. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 162 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Richardson (CA), #70, which 

would establish a competitive grant program to fund clean and energy-efficient transportation vehicles and technology at seaports. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 163 

Date: June 26, 2009 (legislative day of June 25, 2009). 


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Measure: H.R. 2454. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order en bloc the following 

amendments by Rep. Goodlatte (VA) to be separately debatable for 

10 minutes each: #157, which would allow the President to suspend 

the Global Warming Pollution Reduction program in the event of 

any national emergency or national disaster; Rep. Goodlatte (VA), 

#158, which would allow a governor of any State or an electricity 

provider in any State to petition the Commission to waive, in whole 

or in part, the renewable electric standard if a State does not have 

the renewable energy resources to meet the mandate; and Rep. 

Goodlatte (VA), #177, which would state that the administrator 

may only approve higher ethanol blends, higher than 10%, in gasoline if the administrator can certify that higher ethanol additives 

will not contribute to failure of emission control devices in 80% of 

vehicles inventory. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 164 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Kline, John (MN), #20, which 

would expand eligibility under the Green Jobs Act to provide that 

jobseekers and job-training partners are not excluded for not being 

union affiliated. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 165 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Fallin (OK), #181, which would 

exclude all businesses with fewer than 100 employees from the restrictions in H.R. 2454. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 166 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Reps. Camp (MI)/Herger (CA)/Johnson, Sam (TX)/Brady, Kevin (TX)/Linder (GA)/Tiberi (OH)/BrownVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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Waite (FL)/Davis, Geoff (KY)/Boustany (LA)/Roskam (IL), #37, 

which would delay the implementation of the Safe Climate Act portion of the bill until the Comptroller General of the United States 

determines that the bill would not result in a net increase in costs 

for American families with household income less than $200,000 for 

single filers or $250,000 for joint filers. The Comptroller General 

must make a determination within 3 months of enactment 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 167 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Biggert (IL), #217, which would 

strike national building codes and national labels for buildings. It 

also would insert the text of H.R. 2336, the ‘‘Green Act of 2009,’’ 

and H.R. 2246, the ‘‘Community Building Code Administration 

Grant Act,’’ into the bill. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 168 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Roe (TN), #106, which would 

require the United States to reach agreement on greenhouse gas 

reductions with China and India before implementing the legislation. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 169 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Souder (IN), #203, which would 

exclude small farmers with $100,000 in annual sales from any regulation or standard in the bill. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 


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Rules Committee record vote No. 170 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment in the nature of a substitute by Rep. 

Bishop, Rob (UT)/Price, Tom (GA), #18, which would strike all after 

the enacting clause and insert provisions regarding tax exempt financing for qualified renewable energy facilities, repeal of federal 

purchasing requirements, renewable technologies, innovation in 

technology, national grid efficiency, regulatory burdens, judicial review regarding energy projects, carbon capture and clean coal technology, natural gas, conservation, production, and job creation. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; DiazBalart—Yea; Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 171 

Date: June 26, 2009 (legislative day of June 25, 2009). 

Measure: H.R. 2454. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 7–3. 

Vote by Members: McGovern—Yea; Cardoza—Yea; Arcuri—Yea; 

Perlmutter—Yea; Pingree—Yea; Polis—Yea; Dreier—Nay; DiazBalart—Nay; Sessions—Nay; Slaughter—Yea. 

SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

1. Waxman (CA): The amendment would make changes to accommodate States that utilize a central purchasing model for its renewable electricity standard, and makes additional changes. It 

would provide FERC with siting authority for the construction of 

certain high-priority interstate transmission lines constructed in 

the Western Interconnection. It also would amend the National Interest Electric Transmission Corridors. 

It would require the Agriculture Secretary to establish a list of 

types of domestic agricultural and forestry practices that result in 

reductions or avoidance of greenhouse gas emissions. It exempts 

the agriculture and forestry sectors from the bill’s emission caps. 

It redefines ‘‘biomass.’’ It grandfathers existing biodiesel plants to 

exempt them from lifecycle analysis under the RFS. It would permit states to convey allowances in a SEED account directly to renewable energy generators. It would require the Agriculture Secretary to establish a carbon incentives program to achieve supplemental greenhouse gas emissions reductions on private agricultural 

and forestland. 

It would establish a Renewable Electricity Standard (RES) for 

Federal agencies. It also would provide Federal agencies with the 

authority to enter into renewable energy power purchase agreements for up to 20 years. It would make natural gas fueled vehicles 

eligible for clean vehicle incentives, the vehicle integration program, and the manufacturing incentives for alternatively fueled vehicles. It would limit the cost of a permit for a license for the conVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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struction of a solar energy system. It would provide that noncompliance with permit cost requirements disqualifies the entity 

from Community Development Block Grants. 

It would authorize a national education and awareness program 

for the purpose of informing building, facility, and industrial plant 

owners and managers and decisionmakers, government leaders, 

and industry leaders about the large energy-saving potential of 

greater use of mechanical insulation and other benefits. It would 

amend the definition of a ‘‘cluster,’’ as it applies to Energy Innovation Hubs. It would ensure that virtual connections qualify when 

defining a cluster. 

It would amend the Retrofit for Energy and Environmental Performance (REEP) program to provide that funds provided to disaster victims through the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act may qualify as the building owners’ contribution toward the matching requirements of the REEP program. 

It requires the Federal agencies administering assistance to disaster victims through the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act shall provide information to disaster victims on the REEP program. It would provide 10 percent of funding 

under the REEP program for retrofits of public and assisted housing. 

It would create a Community Building Code Administration 

Grant program, providing $100 million over five years in competitive, matching grants for local building code enforcement. It would 

limit the Building Energy Performance Labeling Program in sec. 

204 of the bill to new construction only. It would provide incentives 

to lenders and financial institutions to provide lower interest loans 

and other benefits to consumers who build, buy, or remodel homes 

and businesses to improve their energy efficiency. It would direct 

HUD to issue rules to prohibit private covenants that restrict or 

prohibit the installation of solar energy systems. 

It would authorize the Energy Secretary to develop a research 

program to study the factors affecting whether consumers adopt 

energy conservation practices or make energy efficiency improvements. It would require the Energy Secretary to report to Congress 

on a study on the use of thorium-fueled nuclear reactors for national energy needs, including a response to the IAEA study entitled ‘‘Thorium fuel cycle—Potential benefits and challenges.’’ 

It would establish a clean energy career training clearinghouse 

to aid institutions with Federal resources, expertise, information 

and points of contact in establishing and maintaining quality training programs. It would add a provision seeking to ensure that 

minority- owned and women-owned businesses can benefit from 

grants aimed at stimulating business development. It would require the Labor Secretary to monitor the potential growth of impacted and displaced workers to ensure that the necessary funding 

continues to support the number of workers affected. It would express the sense of Congress that the United States should work 

with the International Civil Aviation Organization. 


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SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN

PART B TO BE MADE IN ORDER

1. Forbes (VA): Would strike everything and insert the text of 

H.R. 513, the ‘‘New Manhattan Project for Energy Independence.’’ 

(30 minutes) 

PART A—TEXT OF THE AMENDMENT TO BE CONSIDERED AS ADOPTED

Page 14, strike lines 1 through 3 and insert: 

‘‘(7) CENTRAL PROCUREMENT STATE.—The term ‘central procurement State’ means a State that, as of January 1, 2009, had 

adopted and implemented a legally enforceable mandate that, 

in lieu of requiring utilities to submit credits or certificates 

issued based on generation of electricity from (or to purchase 

or generate electricity from) resources defined by the State as 

renewable, requires retail electric suppliers to collect payments 

from electricity ratepayers within the State that are used for 

central procurement, by a State agency or a public benefit corporation established pursuant to State law, of credits or certificates issued based on generation of electricity from resources 

defined by the State as renewable. 

Page 15, beginning line 8, strike paragraph (11), relating to the 

definition of high conservation priority land. 

Page 16, line 5, strike ‘‘1992’’ and insert ‘‘1988’’. 

Page 16, line 13, strike ‘‘1992’’ and insert ‘‘1988’’. 

Page 19, beginning line 13, strike paragraph (16), relating to the 

definition of renewable biomass, and insert the following new paragraph: 

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

means any of the following: 

‘‘(A) Materials, pre-commercial thinnings, or removed 

invasive species from National Forest System land and 

public lands (as defined in section 103 of the Federal Land 

Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments 

(such as trees, wood, brush, thinnings, chips, and slash), 

that are removed as part of a federally recognized timber 

sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore 

ecosystem health, and that are— 

‘‘(i) not from components of the National Wilderness 

Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or 

badly infested trees), components of the National 

Landscape Conservation System, National Monuments, National Conservation Areas, Designated 

Primitive Areas, or Wild and Scenic Rivers corridors; 

‘‘(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land 

manager; and 

‘‘(iii) harvested in accordance with Federal and State 

law, and applicable land management plans. 


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‘‘(B) Any organic matter that is available on a renewable 

or recurring basis from non-Federal land or land belonging 

to an Indian or Indian tribe that is held in trust by the 

United States or subject to a restriction against alienation 

imposed by the United States, including— 

‘‘(i) renewable plant material, including— 

‘‘(I) feed grains; 

‘‘(II) other agricultural commodities; 

‘‘(III) other plants and trees; and 

‘‘(IV) algae; and 

‘‘(ii) waste material, including— 

‘‘(I) crop residue; 

‘‘(II) other vegetative waste material (including 

wood waste and wood residues); 

‘‘(III) animal waste and byproducts (including 

fats, oils, greases, and manure); 

‘‘(IV) construction waste; and 

‘‘(V) food waste and yard waste. 

‘‘(C) Residues and byproducts from wood, pulp, or paper 

products facilities.’’. 

Page 26, line 22, strike ‘‘(g)’’ and insert ‘‘(h)’’. 

Page 31, line 6, strike ‘‘Where’’ and insert ‘‘(A) Except as provided in subparagraph (B), where’’ 

Page 32, after line 4, insert: 

‘‘(B) In the case of a central procurement State that pursuant 

to subsection (g) has assumed responsibility for compliance 

with the requirements of subsection (b), the Commission shall 

issue directly to the State Federal renewable electricity credits 

for any renewable electricity for which the State, pursuant to 

a mandate described in subsection (a)(7), has centrally procured credits or certificates issued based on generation of such 

renewable electricity. 

Page 32, line 6, strike ‘‘When’’ and insert ‘‘Except as otherwise 

provided in paragraph (2), when’’. 

Page 43, line 10, after ‘‘supplier’’ insert ‘‘, or a central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b),’’. 

Page 43, line 21, before the comma insert ‘‘and paragraph (4)’’. 

Page 44, line 5 strike ‘‘(4)’’ and insert ‘‘(5) and with paragraph 

(4) where applicable’’. 

Page 44, line 7, strike ‘‘(4)’’ and insert ‘‘(5), or with paragraph (4), 

where applicable’’. 

Page 44, after line 20, insert the following new paragraph and 

redesignate the succeeding paragraph accordingly: 

‘‘(4) CENTRAL PROCUREMENT STATES.— 

‘‘(A) IN GENERAL.—A central procurement State that, 

pursuant to subsection (g), has assumed responsibility for 

compliance with the requirements of subsection (b) shall 

deposit any alternative compliance payments under this 

subsection in a unique fund in the State treasury created 

and used solely for this purpose. 

‘‘(B) REQUIREMENTS.—As a precondition of making alternative compliance payments under this subsection, a cenVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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tral procurement State shall certify to the Commission, in 

accordance with such requirements as the Commission 

may prescribe, that— 

‘‘(i) making such payments is the lowest cost alternative to meet the requirements of subsection (b); and 

‘‘(ii) moneys used by the State to make such payments are in addition to any spending that the State, 

and any separate entity charged with administering 

the State central procurement requirement identified 

under subsection (a)(7), otherwise collectively would 

direct to the purposes identified in paragraph (3). 

‘‘(C) USES.—A central procurement State that makes alternative compliance payments under this subsection shall 

certify to the Commission that, in using such payments in 

accordance with paragraph (3), it has, to the extent practicable, maximized the level of deployment of renewable 

electricity generation (measured in megawatt hours) and 

electricity savings per dollar that are achieved through 

such expenditures. 

Page 45, line 5 before the period insert ‘‘and demonstrating compliance with the requirements of this subsection’’. 

Page 45, after line 5, insert the following new subsection and redesignate the succeeding subsections accordingly: 

‘‘(g) CENTRAL PROCUREMENT STATES.— 

‘‘(1) IN GENERAL.—A central procurement State may, upon 

submission of a written request by the Governor of such State 

to the Commission, assume responsibility for compliance with 

the requirements of subsection (b) on behalf of retail electric 

suppliers located in such State, exclusively with regard to the 

portion of such retail electric suppliers’ base amount that is 

sold within the State. 

‘‘(2) DEMONSTRATION OF ELECTRICITY SAVINGS.—If a central 

procurement State opts to meet any part of the requirements 

of subsection (b) based on the achievement of demonstrated 

total annual electricity savings, regardless of whether such 

State has received delegated authority pursuant to subsection 

(f)(5), such State shall submit such demonstrated total annual 

electricity savings to the Commission through an annual report 

in accordance with requirements prescribed by the Commission 

by regulation, which shall be of equivalent stringency to those 

applicable to retail electric suppliers under subsection (f). 

‘‘(3) NONCOMPLIANCE.—If a central procurement State that 

pursuant to this subsection has assumed responsibility for 

compliance with the requirements of subsection (b), fails to satisfy the requirements of subsection (b) or (h) for any year, the 

State’s assumption of responsibility under this subsection shall 

be discontinued immediately, and retail electric suppliers located in such State henceforth shall be directly subject to the 

requirements of this section. 

Page 45, line 16, after ‘‘person’’ insert ‘‘, other than any central 

procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection 

(b),’’. 

Page 45, line 17, and page 46, line 3, strike ‘‘(g)’’ and insert ‘‘(h)’’. 


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Page 45, line 21, strike ‘‘(g)(1)’’ and insert ‘‘(h)(1)’’. 

Page 46, line 9, after ‘‘person’’ insert ‘‘, other than any central 

procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection 

(b),’’. 

Page 46, line 20, strike ‘‘(i)’’ and insert ‘‘(j)’’. 

Page 49, after line 4, insert the following new section and make 

the necessary conforming changes in the table of contents: 

SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES. 

(a) REQUIREMENT.—For each of calendar years 2012 through 

2039, the President shall ensure that, of the total amount of electricity Federal agencies consume in the United States during each 

calendar year, the following percentage shall be renewable electricity: 

Calendar year Required annual 

percentage 

2012 ................................................................... 6.0 

2013 ................................................................... 6.0 

2014 ................................................................... 9.5 

2015 ................................................................... 9.5 

2016 ................................................................... 13.0 

2017 ................................................................... 13.0 

2018 ................................................................... 16.5 

2019 ................................................................... 16.5 

2020 ................................................................... 20.0 

2021 through 2039 ........................................... 20.0 

(b) DEFINITIONS.—For purposes of this section: 

(1) RENEWABLE ELECTRICITY.—The term ‘‘renewable electricity’’ shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and 

following). 

(2) RENEWABLE ENERGY RESOURCE.—The term ‘‘renewable 

energy resource’’ shall have the meaning given in section 610 

of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

2601 and following). 

(c) MODIFICATION OF REQUIREMENT.—If the President determines 

that the Federal Government cannot feasibly meet the requirement 

established in subsection (a) in a specific calendar year, the President may, by written order, reduce such requirement for such calendar year to a percentage the President determines the Federal 

Government can feasibly meet. 

(d) REPORTS.—Not later than April 1, 2013, and each year thereafter, the Secretary of Energy shall provide a report to Congress 

on the percentage of each Federal agency’s electricity consumption 

in the United States that was renewable electricity in the previous 

calendar year. 

(e) CONTRACTS FOR RENEWABLE ENERGY.—(1) Notwithstanding 

section 501(b)(1)(B) of title 40, United States Code, a contract for 

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source for the Federal Government may be made for a period of not 

more than 20 years. 

(2) Not later than 90 days after the date of enactment of this 

subsection, the Secretary of Energy, through the Federal Energy 

Management Program, shall publish a standardized renewable energy purchase agreement, setting forth commercial terms and conditions, that Federal agencies may use to acquire electricity generated from a renewable energy resource. 

(3) The Secretary of Energy shall provide technical assistance to 

assist Federal agencies in implementing this subsection. 

Page 96, line 8, insert ‘‘The limitation in the preceding sentence 

shall not apply to projects that meet the eligibility criteria in subsection (b)(1)(A)(iv)(I).’’ after ‘‘generating capacity.’’. 

Page 110, strike lines 8 through 15 and insert ‘‘subsection (a) for 

the reconstruction or retooling of facilities for the manufacture of 

plug-in electric drive vehicles or batteries for such vehicles that are 

developed and produced in the United States.’’. 

Page 116, beginning line 1, strike section 126 and insert the following new section: 

SEC. 126. DEFINITION OF RENEWABLE BIOMASS. 

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

is amended to read as follows: 

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

means any of the following: 

‘‘(i) Materials, pre-commercial thinnings, or removed 

invasive species from National Forest System land and 

public lands (as defined in section 103 of the Federal 

Land Policy and Management Act of 1976 (43 U.S.C. 

1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, 

chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or 

insect infestation, or to restore ecosystem health, and 

that are— 

‘‘(I) not from components of the National Wilderness Preservation System, Wilderness Study 

Areas, Inventoried Roadless Areas, old growth 

stands, late-successional stands (except for dead, 

severely damaged, or badly infested trees), components of the National Landscape Conservation 

System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild 

and Scenic Rivers corridors; 

‘‘(II) harvested in environmentally sustainable 

quantities, as determined by the appropriate Federal land manager; and 

‘‘(III) harvested in accordance with Federal and 

State law, and applicable land management plans. 

‘‘(ii) Any organic matter that is available on a renewable or recurring basis from non-Federal land or 

land belonging to an Indian or Indian tribe that is 

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striction against alienation imposed by the United 

States, including— 

‘‘(I) renewable plant material, including— 

‘‘(aa) feed grains; 

‘‘(bb) other agricultural commodities; 

‘‘(cc) other plants and trees; and 

‘‘(dd) algae; and 

‘‘(II) waste material, including— 

‘‘(aa) crop residue; 

‘‘(bb) other vegetative waste material (including wood waste and wood residues); 

‘‘(cc) animal waste and byproducts (including fats, oils, greases, and manure); 

‘‘(dd) construction waste; 

‘‘(ee) food waste and yard waste; and 

‘‘(ff) the non-fossil biogenic portion of municipal solid waste and construction, demolition, and disaster debris. 

‘‘(iii) Residues and byproducts from wood, pulp, or 

paper products facilities.’’. 

Page 120, after line 16, insert the following new subsection: 

(c) REDUCTION.—The last sentence of section 211(o)(7)(D) of the 

Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to read as follows: ‘‘For any calendar year in which the Administrator makes 

such a reduction, the Administrator shall also reduce the applicable 

volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same volume.’’. 

Page 128, line 4, strike ‘‘; and’’ and insert a semicolon. 

Page 128, line 17, strike the period at the end and insert ‘‘; and’’. 

Page 128, after line 17, insert the following new paragraph: 

(4) in section 797, by striking ‘‘2011’’ and inserting ‘‘2016’’. 

Page 129, after line 9, insert the following new sections and 

make the necessary conforming changes in the table of contents: 

SEC. 130. FLEET VEHICLES. 

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

is amended as follows: 

(1) By adding the following new paragraph at the end of subsection (a): 

‘‘(6) REPOWERED OR CONVERTED ALTERNATIVE FUELED VEHICLES.—As used in this paragraph, the term ‘repowered or converted alternative fueled vehicle’ includes light-, medium- or 

heavy-duty motor vehicles that have been modified with an 

EPA or CARB compliant engine or vehicle or aftermarket system so that the vehicle or engine is capable of operating on an 

alternative fuel.’’. 

(2) By adding the following new paragraph at the end of subsection (b): 

‘‘(3) Repowered or converted vehicles. Not later than January 

1, 2010, the Secretary shall allocate credits to fleets that 

repower or convert an existing vehicle so that it is capable of 

operating on an alternative fuel. In the case of any mediumor heavy-duty vehicle that is repowered or converted so that it 

is capable of operating on an alternative fuel, the Secretary 


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shall allocate additional credits for such vehicles if he determines that such vehicles displace more petroleum than light 

duty alternative fueled vehicles. Such rules shall also include 

a requirement that such vehicles remain in the fleet for a period of no less than 2 years in order to continue to qualify for 

credit. The Secretary also shall extend the flexibility afforded 

in this paragraph to Federal fleets subject to the purchase provisions contained in section 303 of this Act.’’. 

SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS REDUCTIONS. 

Within 360 days after the date of enactment of this Act, the Administrator, in consultation with the Secretaries of Energy and 

Transportation, and the Administrator of the General Services Administration, and after an examination of available scientific studies or analysis, shall submit to the Congress a report on— 

(1) the contribution that light and heavy duty natural gas 

vehicles, by category and State, have made during the last decade to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act, and the reduced consumption of 

petroleum-based fuels; 

(2) the contribution that light and heavy duty natural gas 

vehicles are expected to make from 2010 to 2020 in reducing 

greenhouse gas and criteria pollutants under the Clean Air Act 

based, among other things, on additional Federal incentives for 

the manufacture and deployment of natural gas vehicles provided in this Act, and other Federal legislation; and 

(3) additional Federal measures, including legislation, that 

could, if implemented, maximize the potential for natural gas 

used in both stationary and mobile sources to contribute to the 

reduction of greenhouse gases and criteria pollutants under the 

Clean Air Act. 

Page 140, line 17, strike ‘‘5 percent’’ and insert ‘‘5.5 percent’’. 

Page 141, line 13, insert ‘‘direct provision of allowances,’’ after 

‘‘forgivable loans,’’. 

Page 164, strike line 10 and all that follows down through line 

19 on page 170, insert the following and make the necessary conforming changes in the table of contents: 

SEC. 151. TRANSMISSION PLANNING AND SITING. 

(a) IN GENERAL.—Section 216 of the Federal Power Act (16 

U.S.C. 824p) is amended as follows: 

(1) In subsection (b), in paragraph (5), by striking ‘‘; and’’ 

and inserting a semicolon, in paragraph (6) by striking the period and inserting ‘‘; and’’ and by adding the following at the 

end thereof: 

‘‘(7) the facility is interstate in nature or is an intrastate segment integral to a proposed interstate facility;’’. 

(2) In subsection (k), by inserting at the end the following: 

‘‘Subsections (a), (b), (c), and (h) of this section shall not apply 

in the Western interconnection.’’. 

(3) In subsections (d) and (e), by striking ‘‘subsection (b)’’ in 

each place and inserting ‘‘subsection (b) or section 216B’’, and 

by striking ‘‘permit’’ and inserting ‘‘permit or certificate’’ in 

each place it appears. 


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(b) NEW SECTIONS.—The Federal Power Act (16 U.S.C. 824p) is 

amended by inserting the following new sections after section 216: 

‘‘SEC. 216A TRANSMISSION PLANNING. 

‘‘(a) FEDERAL POLICY FOR TRANSMISSION PLANNING.— ‘‘(1) OBJECTIVES.—It is the policy of the United States that 

regional electric grid planning should facilitate the deployment 

of renewable and other zero-carbon and low-carbon energy 

sources for generating electricity to reduce greenhouse gas 

emissions while ensuring reliability, reducing congestion, ensuring cyber-security, minimizing environmental harm, and 

providing for cost-effective electricity services throughout the 

United States, in addition to serving the objectives stated in 

section 217(b)(4). 

‘‘(2) OPTIONS.—In addition to the policy under paragraph (1), 

it is the policy of the United States that regional electric grid 

planning to meet these objectives should result from an open, 

inclusive and transparent process, taking into account all significant demand-side and supply-side options, including energy 

efficiency, distributed generation, renewable energy and zerocarbon electricity generation technologies, smart-grid technologies and practices, demand response, electricity storage, 

voltage regulation technologies, high capacity conductors with 

at least 25 percent greater efficiency than traditional ACSR 

(aluminum stranded conductors steel reinforced) conductors, 

superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity 

and corridors. 

‘‘(b) PLANNING.— ‘‘(1) PLANNING PRINCIPLES.—Not later than 1 year after the 

date of enactment of this section, the Commission shall adopt, 

after notice and opportunity for comment, national electricity 

grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future 

transmission planning that may implicate interstate transmission of electricity. 

‘‘(2) REGIONAL PLANNING ENTITIES.—Not later than 3 months 

after the date of adoption by the Commission of national electricity grid planning principles pursuant to paragraph (1), entities that conduct or may conduct transmission planning pursuant to State, tribal, or Federal law or regulation, including 

States, Indian tribes, entities designated by States and Indian 

tribes, Federal Power Marketing Administrations, transmission 

providers, operators and owners, regional organizations, and 

electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans 

to the Commission. 

‘‘(3) COORDINATION OF REGIONAL PLANNING ENTITIES.—The 

Commission shall encourage regional planning entities described under paragraph (2) to cooperate and coordinate across 

regions and to harmonize regional electric grid planning with 

planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission shall work with States, 

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ergy, environment, natural resources, and land management 

agencies and commissions, Federal power marketing administrations, electric utilities, transmission providers, load-serving 

entities, transmission operators, regional transmission organizations, independent system operators, and other organizations 

to resolve any conflict or competition among proposed planning 

entities in order to build consensus and promote the Federal 

policy established under subsection (a). The Commission shall 

seek to ensure that planning that is consistent with the national electricity grid planning principles adopted pursuant to 

paragraph (1) is conducted in all regions of the United States 

and the territories, but in a manner that, to the extent feasible, avoids uncoordinated planning by more than one planning entity for the same area. 

‘‘(4) RELATION TO EXISTING PLANNING POLICY.—In implementing the Federal policy established under subsection (a), 

the Commission shall 

‘‘(A) incorporate and coordinate with any ongoing planning efforts undertaken pursuant to section 217 and Commission Order No. 890; 

‘‘(B) coordinate with the Secretary of Energy in providing to the regional planning entities an annual summary of national energy policy priorities and goals; 

‘‘(C) coordinate with corridor designation and planning 

functions carried out pursuant to section 216 by the Secretary of Energy, who shall provide financial support from 

available funds to support the purposes of this section; and 

‘‘(D) coordinate with the Secretaries of the Interior and 

Agriculture and Indian tribes in carrying out the Secretaries’ or tribal governments’ existing responsibilities for 

the planning or siting of transmission facilities on Federal 

or tribal lands, consistent with law, policy, and regulations 

relating to the management of federal public lands . 

‘‘(5) ASSISTANCE.— 

‘‘(A) IN GENERAL.—The Commission shall provide support to and may participate if invited to do so in the regional grid planning processes conducted by regional planning entities. The Secretary of Energy and the Commission 

may provide planning resources and assistance as required 

or as requested by regional planning entities, including 

system data, cost information, system analysis, technical 

expertise, modeling support, dispute resolution services, 

and other assistance to regional planning entities, as appropriate. 

‘‘(B) AUTHORIZATION.—There are authorized to be appropriated such sums as may be necessary to carry out this 

paragraph. 

‘‘(6) CONFLICT RESOLUTION.—In the event that regional grid 

plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to achieve the 

objectives of the Federal policy established under subsection 

(a). 

‘‘(7) SUBMISSION OF PLANS.—The Commission shall require 

regional planning entities to submit initial regional electric 

grid plans to the Commission not later than 18 months after 


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the date the Commission promulgates national electricity grid 

planning principles pursuant to paragraph (1), with updates to 

such plans not less than every 3 years thereafter. The Commission shall review such plans for consistency with the national 

grid planning principles and may return a plan to one or more 

planning entities for further consideration, along with the 

Commission’s own recommendations for resolution of any conflict or for improvement. 

‘‘(8) INTEGRATION OF PLANS.—Regional electric grid plans 

should, in general, be developed from sub-regional requirements and plans, including planning input reflecting individual 

utility service areas. Regional plans may then in turn be combined into larger regional plans, up to interconnection-wide 

and national plans, as appropriate and necessary as determined by the Commission. In no case shall a multi-regional 

plan impose inclusion of a facility on a region that has submitted a valid plan that, after efforts to resolve the conflict, 

does not include such facility. To the extent practicable, all 

plans submitted to the Commission shall be public documents 

and available on the Commission’s Web site. 

‘‘(9) MULTI-REGIONAL MEETINGS.—As regional grid plans are 

submitted to the Commission, the Commission may convene 

multi-regional meetings to discuss regional grid plan consistency and integration, including requirements for multi-regional 

projects, and to resolve any conflicts that emerge from such 

multi-regional projects. The Commission shall provide its recommendations for eliminating any inter-regional conflicts. 

‘‘(10) REPORT TO CONGRESS.—Not later than 3 years after the 

date of enactment of this section and each 3 years thereafter, 

the Commission shall provide a report to Congress containing 

the results of the regional grid planning process, including 

summaries of the adopted regional plans and the extent to 

which the Federal policy objectives in subsection (a) have been 

successfully achieved. The Commission shall provide an electronic version of its report on its website with links to all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any 

conflicts not resolved during the planning process. The Commission shall make any recommendations to Congress on the 

appropriate Federal role or support required to address the 

needs of the electric grid, including recommendations for addressing any needs that are beyond the reach of existing State, 

tribal, and Federal authority. 

‘‘SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN INTERCONNECTION. 

‘‘(a) APPLICABILITY.—This section applies only to States located in 

the Western Interconnection and does not apply to States located 

in the Eastern Interconnection, to the States of Alaska or Hawaii, 

or to ERCOT. 

‘‘(b) CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.—The 

Commission may, after notice and opportunity for hearing, issue a 

certificate of public convenience and necessity for the construction 

or modification of a transmission facility if the Commission finds 

that— 


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‘‘(1) the facility was identified and included in one or more 

relevant and final regional or interconnection-wide electric grid 

plans submitted to the Commission pursuant to subsection (b) 

of 216A; 

‘‘(2) any conflict among regional electric grid plans concerning the need for the facility was resolved; 

‘‘(3) such relevant regional electric grid plans are consistent 

with the national grid planning principles adopted by the Commission pursuant to subsection (b); 

‘‘(4) the facility was identified as needed in significant measure to meet demand for renewable energy in such plans; 

‘‘(5) the facility is a multistate facility; 

‘‘(6) the developer of such facility filed a complete application 

seeking approval for the siting of the facility with a state commission or other entity that has authority to approve the siting 

of the facility; 

‘‘(7) a State commission or other entity that has authority to 

approve the siting of the facility— 

‘‘(A) did not issue a decision on an application seeking 

approval for the siting of the facility within 1 year after 

the date the applicant submitted a completed application 

to the State; 

‘‘(B) denied a complete application seeking approval for 

the siting of the facility; or 

‘‘(C) authorized the siting of the facility subject to conditions that unreasonably interfere with the development of 

the facility; and 

‘‘(8) the siting of the facility can be accomplished in a manner consistent with the Federal policy established in subsection 

(a) of section 216A and the national grid planning principles 

adopted by the Commission pursuant to subsection (b) of section 216A. 

‘‘(c) STATE RECOMMENDATIONS ON RESOURCE PROTECTION.—In 

issuing a final certificate of public convenience and necessity pursuant to subsection (b), the Commission shall— 

‘‘(1) consider any siting constraints and mitigation measures 

based on habitat protection, health and safety considerations, 

environmental considerations, or cultural site protection identified by relevant State or local authorities; and 

‘‘(2) incorporate those identified siting constraints or mitigation measures, including recommendations related to project 

routing, as conditions in the final certificate of public convenience and necessity, or if the Commission determines that a 

recommended siting constraint or mitigation measure is infeasible, excessively costly, or inconsistent with the Federal policy 

established in subsection (a) of section 216A or the national 

grid planning principles adopted by the Commission pursuant 

to subsection (b) of section 216A— 

‘‘(A) consult with State regulatory agencies to seek to resolve the issue; 

‘‘(B) incorporate as conditions on the certificate such recommended siting constraints or mitigation measures as 

are determined to be appropriate by the Commission, 

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section (a) of section 216A and the national grid planning 

principles adopted by the Commission pursuant to subsection (b)of section 216A, and the record before the Commission; and 

‘‘(C) if, after consultation, the Commission does not 

adopt in whole or in part a recommendation of an agency, 

publish a finding that the adoption of the recommendation 

is infeasible, not cost effective, or inconsistent with this 

section or other applicable provisions of law. 

‘‘(d) CERTIFICATE APPLICATIONS.—(1) An application for a preliminary or final certificate of public convenience and necessity under 

this subsection shall be made in writing to the Commission. 

‘‘(2) The Commission shall issue rules specifying— 

‘‘(A) the form of the application; 

‘‘(B) the information to be contained in the application; and 

‘‘(C) the manner of service of notice of the application on interested persons. 

‘‘(e) COORDINATION OF FEDERAL AUTHORIZATIONS FOR TRANS- MISSION FACILITIES.— ‘‘(1) In this subsection, the term ‘Federal authorization’ shall 

have the same meaning and include the same actions as in section 216(h). 

‘‘(2) The Federal Energy Regulatory Commission shall act as 

the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews of the 

facility, provided, however, that to the extent the facility is 

proposed to be sited on Federal lands, the Department of the 

Interior will assume such lead-agency duties as agreed between the Commission and the Department of Interior. 

‘‘(3) To the maximum extent practicable under applicable 

Federal law, the Commission, and to the extent agreed, the 

Secretary of Interior, shall coordinate the Federal authorization and review process under this subsection with any Indian 

tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions. 

‘‘(4)(A) As head of the lead agency, the Chairman of the Commission, in consultation with the Secretary of Interior and with 

those entities referred to in paragraph (3) that are willing to 

coordinate their own separate permitting and environmental 

reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal 

authorization decisions relating to, the proposed facility. 

‘‘(B) The Chairman of the Commission, or the Secretary of 

Interior, as agreed under paragraph (2), shall ensure that, once 

an application has been submitted with such data as the lead 

agency considers necessary, all permit decisions and related 

environmental reviews under all applicable Federal laws shall 

be completed— 

‘‘(i) within 1 year; or 

‘‘(ii) if a requirement of another provision of Federal law 

does not permit compliance with clause (i), as soon thereafter as is practicable. 


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‘‘(C) The Commission shall provide an expeditious pre-application mechanism for prospective applicants to confer with the 

agencies involved to have each such agency determine and 

communicate to the prospective applicant not later than 60 

days after the prospective applicant submits a request for such 

information concerning— 

‘‘(i) the likelihood of approval for a potential facility; and 

‘‘(ii) key issues of concern to the agencies and public. 

‘‘(5)(A) As lead agency head, the Chairman of the Commission, in consultation with the affected agencies, shall prepare 

a single environmental review document, which shall be used 

as the basis for all decisions on the proposed project under 

Federal law. 

‘‘(B) The Chairman of the Commission and the heads of other 

agencies shall streamline the review and permitting of transmission within corridors designated under section 503 of the 

Federal Land Policy and Management Act (43 U.S.C. 1763) by 

fully taking into account prior analyses and decisions relating 

to the corridors. 

‘‘(C) The document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law. 

‘‘(6)(A) If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the 

deadline established by the Commission pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may 

file an appeal with the President, who shall, in consultation 

with the affected agency, review the denial or failure to take 

action on the pending application. 

‘‘(B) Based on the overall record and in consultation with the 

affected agency, the President may— 

‘‘(i) issue the necessary authorization with any appropriate conditions; or 

‘‘(ii) deny the application. 

‘‘(C) The President shall issue a decision not later than 90 

days after the date of the filing of the appeal. 

‘‘(D) In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, 

including any requirements of— 

‘‘(i) the National Forest Management Act of 1976 (16 

U.S.C. 472a et seq.); 

‘‘(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531 

et seq.); 

‘‘(iii) the Federal Water Pollution Control Act (33 U.S.C. 

1251 et seq.); 

‘‘(iv) the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.); and 

‘‘(v) the Federal Land Policy and Management Act of 

1976 (43 U.S.C. 1701 et seq.). 

‘‘(7)(A) Not later than 18 months after August 8, 2005, the 

Commission or, as requested, the Secretary or Interior, shall 

issue any regulations necessary to implement this subsection. 

‘‘(B)(i) Not later than 1 year after August 8, 2005, the Commission, the Secretary of Interior, and the heads of all Federal 


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agencies with authority to issue Federal authorizations shall 

enter into a memorandum of understanding to ensure the 

timely and coordinated review and permitting of electricity 

transmission facilities. 

‘‘(ii) Interested Indian tribes, multistate entities, and State 

agencies may enter the memorandum of understanding. 

‘‘(C) The head of each Federal agency with authority to issue 

a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to 

ensure, full implementation of the regulations and memorandum required under this paragraph. 

‘‘(8)(A) Each Federal land use authorization for an electricity 

transmission facility shall be issued— 

‘‘(i) for a duration, as determined by the Secretary of Interior, commensurate with the anticipated use of the facility; and 

‘‘(ii) with appropriate authority to manage the right-ofway for reliability and environmental protection. 

‘‘(B) On the expiration of the authorization (including an authorization issued before August 8, 2005), the authorization 

shall be reviewed for renewal taking fully into account reliance 

on such electricity infrastructure, recognizing the importance 

of the authorization for public health, safety, and economic 

welfare and as a legitimate use of Federal land. 

‘‘(9) In exercising the responsibilities under this section, the 

Commission shall consult regularly with— 

‘‘(A) electric reliability organizations (including related 

regional entities) approved by the Commission; and 

‘‘(B) Transmission Organizations approved by the Commission.’’. 

Page 218, line 12, strike ‘‘concentration of firms’’ and insert ‘‘network of entities’’. 

Page 243, after line 2, insert the following new section: 

SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT, 

AND DEMONSTRATION. 

(a) IN GENERAL.—The Secretary of Energy shall carry out a 

multiyear, multiphase program of research, development, and technology demonstration to improve the efficiency of gas turbines used 

in combined cycle power generation systems and to identify the 

technologies that ultimately will lead to gas turbine combined cycle 

efficiency of 65 percent. 

(b) PROGRAM ELEMENTS.—The program under this section shall— 

(1) support first-of-a-kind engineering and detailed gas turbine design for utility-scale electric power generation, including— 

(A) high temperature materials, including superalloys, 

coatings, and ceramics; 

(B) improved heat transfer capability; 

(C) manufacturing technology required to construct complex three-dimensional geometry parts with improved aerodynamic capability; 

(D) combustion technology to produce higher firing temperature while lowering nitrogen oxide and carbon monoxide emissions per unit of output; 


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(E) advanced controls and systems integration; 

(F) advanced high performance compressor technology; 

and 

(G) validation facilities for the testing of components and 

subsystems; 

(2) include technology demonstration through component 

testing, subscale testing, and full scale testing in existing 

fleets; 

(3) include field demonstrations of the developed technology 

elements so as to demonstrate technical and economic feasibility; and 

(4) assess overall combined cycle system performance. 

(c) PROGRAM GOALS.—The goals of the multiphase program established under subsection (a) shall be— 

(1) in phase I— 

(A) to develop the conceptual design of advanced high efficiency gas turbines that can achieve at least 62 percent 

combined cycle efficiency on a lower heating value basis; 

and 

(B) to develop and demonstrate the technology required 

for advanced high efficiency gas turbines that can achieve 

at least 62 percent combined cycle efficiency on a lower 

heating value basis; and 

(2) in phase II, to develop the conceptual design for advanced 

high efficiency gas turbines that can achieve at least 65 percent combined cycle efficiency on a lower heating value basis. 

(d) PROPOSALS.—Within 180 days after the date of enactment of 

this section, the Secretary shall solicit proposals for conducting activities under this section. In selecting proposals, the Secretary 

shall emphasize— 

(1) the extent to which the proposal will stimulate the creation or increased retention of jobs in the United States; and 

(2) the extent to which the proposal will promote and enhance United States technology leadership. 

(e) COST SHARING.—Section 988 of the Energy Policy Act of 2005 

(42 U.S.C. 16352) shall apply to an award of financial assistance 

made under this section. 

(f) LIMITS ON PARTICIPATION.—The limits on participation applicable under section 999E of the Energy Policy Act of 2005 (42 

U.S.C. 16375) shall apply to financial assistance awarded under 

this section. 

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

be appropriated to the Secretary for carrying out this section 

$65,000,000 for each of fiscal years 2011 through 2014. 

Page 256, line 2, strike ‘‘and’’. 

Page 256, after line 2, insert the following new paragraph: 

(11) sufficient availability of financial services and support to 

small businesses developing and deploying clean energy technologies through partnerships with private entities that have 

relevant credit expertise; and 

Page 256, line 3, redesignate paragraph (11) as paragraph (12). 

Page 285, lines 13 through 15, amend paragraph (4) to read as 

follows: 


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‘‘(4) The Clean Energy Deployment Administration established under section 186 of the American Clean Energy and Security Act of 2009.’’. 

Page 288, line 15, insert ‘‘, including minority-owned and womanowned,’’ after ‘‘to entrepreneurs’’. 

Page 296, after line 6, insert the following new sections: 

SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER 

BORROWING AUTHORITY. 

(a) DETERMINATION.—No later than 6 months after the date of 

enactment of this Act, the Secretary of Energy, in coordination 

with the Secretary of Commerce, shall— 

(1) determine any geographic area within the contiguous 

United States that lacks a Federal power marketing agency; 

(2) develop a plan or criteria for the geographic areas identified in paragraph (1) regarding investment in renewable energy and associated infrastructure within an area identified in 

paragraph (1); and 

(3) identify any Federal agency within an area in paragraph 

(1) that has, or could develop, the ability to facilitate the investment in paragraph (2). 

(b) REPORT.—The Secretary of Energy, in coordination with the 

Secretary of Commerce, shall provide the determinations made 

under subsection (a) to the Committee on Energy and Commerce 

of the House of Representatives. 

(c) ESTABLISHMENT.—Based upon the determinations made pursuant to subsection (a), the Secretary of Energy, in coordination 

with the Secretary of Commerce, shall recommend to the Committee on Energy and Commerce of the House of Representatives 

the establishment of any new Federal lending authority, including 

authorization of additional lending authority for existing Federal 

agencies, not to exceed $3,500,000,000 per geographic area identified in subsection (a)(1). 

(d) AUTHORIZATION.—$25,000,000 is authorized to be appropriated for fiscal year 2010 to carry out the provisions of this section. 

SEC. 199A. STUDY. 

Not later than February 1, 2011, the Secretary of Energy shall 

transmit to the Congress a report showing the results of a study 

on the use of thorium-fueled nuclear reactors for national energy 

needs. Such report shall include a response to the International 

Atomic Energy Agency study entitled ‘‘Thorium fuel cycle - Potential benefits and challenges’’ (IAEA-TECDOC-1450). 

Page 329, line 4, insert ‘‘Owners of public housing or assisted 

housing receiving funding through the REEP program shall agree 

to continue to provide affordable housing consistent with the provisions of the authorizing legislation governing each program for an 

additional period commensurate with the funding received, as determined in accordance with guidelines established by the Secretary of Housing and Urban Development.’’ after ‘‘Federal assistance.’’. 

Page 344, after line 10, insert the following new subparagraph: 

(C) DISASTER DAMAGED BUILDINGS.—Any source of funds, 

including Federal funds provided through the Robert T. 


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Stafford Disaster Relief and Emergency Assistance Act, 

shall qualify as the building owner’s 50 percent contribution, in order to match the contribution of REEP funds, so 

long as the REEP funds are only used to improve the energy efficiency of the buildings being reconstructed. In addition, the appropriate Federal agencies providing assistance to building owners through the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act shall make 

information available, following a disaster, to building 

owners rebuilding disaster damaged buildings with assistance from the Act, that REEP funds may be used for energy efficiency improvements. 

Page 344, lines 11 and 18, redesignate subparagraphs (C) and 

(D) as subparagraphs (D) and (E), respectively. 

Page 335, line 19, strike ‘‘and’’. 

Page 335, line 25, strike the period and insert ‘‘; and’’. 

Page 335, after line 25, add the following new paragraph: 

(3) agree to make not less than 10 percent of allowance value 

received pursuant to section 132(c)(2) for dedicated funding of 

its REEP program available on a preferential basis for retrofit 

projects proposed for public housing and assisted housing, provided that— 

(A) none of such funds shall be used for demolition of 

such housing; 

(B) such retrofits not shall not be used to justify any increase in rents charged to residents of such housing; and 

(C) owners of such housing shall agree to continue to 

provide affordable housing consistent with the provisions 

of the authorizing legislation governing each program for 

an additional period commensurate with the funding received. 

Page 345, lines 7 through 11, strike ‘‘The Administrator,’’ and all 

that follows through ‘‘other residential buildings.’’. 

Page 367, after line 7, insert the following new subsection: 

(m) NEW CONSTRUCTION.—This section shall apply only to construction beginning after the date of enactment of this Act. 

Page 382, after line 10, insert the following new sections: 

SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS. 

(a) GRANT PROGRAM AUTHORIZED.— 

(1) GRANT AUTHORIZATION.—The Secretary of Housing and 

Urban Development shall to the extent amounts are made 

available for grants under this section provide grants to local 

building code enforcement departments. 

(2) COMPETITIVE AWARDS.—The Secretary shall award grants 

under paragraph (1) on a competitive basis taking into consideration the following: 

(A) The financial need of each building code enforcement 

department. 

(B) The benefit to the jurisdiction of having an adequately funded building code enforcement department. 

(C) The demonstrated ability of each building code enforcement department to work cooperatively with other 


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local code enforcement offices, health departments, and 

local prosecutorial agencies. 

(3) MAXIMUM AMOUNT.—The maximum amount of any grant 

awarded under this subsection shall not exceed $1,000,000. 

(4) COORDINATION.—The Secretary of Housing and Urban 

Development shall coordinate with the Secretary of Energy to 

ensure that any unnecessarily duplicative funding through 

grants under this section of activities otherwise funded 

through the Department of Energy is minimized or eliminated. 

(b) REQUIRED ELEMENTS IN GRANT PROPOSALS.—In order to be 

eligible for a grant under subsection (a), a building code enforcement department of a jurisdiction shall submit to the Secretary the 

following: 

(1) A demonstration of the jurisdiction’s needs in executing 

building code enforcement administration. 

(2) A plan for the use of any funds received from a grant 

under this section that addresses the needs discussed in paragraph (1) and that is consistent with the authorized uses established in subsection (c). 

(3) A plan for local governmental actions to be taken to establish and sustain local building code enforcement administration functions, without continuing Federal support, at a 

level at least equivalent to that proposed in the grant application. 

(4) A plan to create and maintain a program of public outreach that includes a regularly updated and readily accessible 

means of public communication, interaction, and reporting regarding the services and work of the building code enforcement 

department to be supported by the grant. 

(5) A plan for ensuring the timely and effective administrative enforcement of building safety and fire prevention violations. 

(c) USE OF FUNDS; MATCHING FUNDS.— 

(1) AUTHORIZED USES.—Amounts from grants awarded under 

subsection (a) may be used by the grant recipient to supplement existing State or local funding for administration of 

building code enforcement, or to supplement allowance value 

received pursuant to this Act for implementation and enforcement of energy efficiency building codes. Such amounts may be 

used to increase staffing, provide staff training, increase staff 

competence and professional qualifications, or support individual certification or departmental accreditation, or for capital 

expenditures specifically dedicated to the administration of the 

building code enforcement department. 

(2) ADDITIONAL REQUIREMENT.—Each building code enforcement department receiving a grant under subsection (a) shall 

empanel a code administration and enforcement team consisting of at least 1 full-time building code enforcement officer, 

a city planner, and a health planner or similar officer. 

(3) MATCHING FUNDS REQUIRED.— 

(A) IN GENERAL.—To be eligible to receive a grant under 

this section, a building code enforcement department shall 

provide matching, non-Federal funds in the following 

amount: 


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(i) In the case of a building code enforcement department serving an area with a population of more than 

50,000, an amount equal to not less than 50 percent 

of the total amount of any grant to be awarded under 

this section. 

(ii) In the case of a building code enforcement department serving an area with a population of between 20,001 and 50,000, an amount equal to not less 

than 25 percent of the total amount of any grant to be 

awarded under this section. 

(iii) In the case of a building code enforcement department serving an area with a population of less 

than 20,000, an amount equal to not less than 12.5 

percent of the total amount of any grant to be awarded 

under this section. 

(B) ECONOMIC DISTRESS.— (i) IN GENERAL.—The Secretary may waive the 

matching fund requirements under subparagraph (A), 

and institute, by regulation, new matching fund requirements based upon the level of economic distress 

of the jurisdiction in which the local building code enforcement department seeking such grant is located. 

(ii) CONTENT OF REGULATIONS.—Any regulations instituted under clause (i) shall include— 

(I) a method that allows for a comparison of the 

degree of economic distress among the local jurisdictions of grant applicants, as measured by the 

differences in the extent of growth lag, the extent 

of poverty, and the adjusted age of housing in 

such jurisdiction; and 

(II) any other factor determined to be relevant 

by the Secretary in assessing the comparative degree of economic distress among such jurisdictions. 

(4) IN-KIND CONTRIBUTIONS.—In determining the non-Federal 

share required to be provided under paragraph (3), the Secretary shall consider in-kind contributions, not to exceed 50 

percent of the amount that the department contributes in nonFederal funds. 

(5) WAIVER OF MATCHING REQUIREMENT.—The Secretary 

shall waive the matching fund requirements under paragraph 

(3) for any recipient jurisdiction that has dedicated all building 

code permitting fees to the conduct of local building code enforcement. 

(d) EVALUATION AND REPORT.— 

(1) IN GENERAL.—Grant recipients under this section shall— 

(A) be obligated to fully account and report for the use 

of all grants funds; and 

(B) provide a report to the Secretary on the effectiveness 

of the program undertaken by the grantee and any other 

criteria requested by the Secretary for the purpose of indicating the effectiveness of, and ideas for, refinement of the 

grant program. 

(2) REPORT.—The report required under paragraph (1)(B) 

shall include a discussion of— 


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(A) the specific capabilities and functions in local building code enforcement administration that were addressed 

using funds received under this section; 

(B) the lessons learned in carrying out the plans supported by the grant; and 

(C) the manner in which the programs supported by the 

grant are to be maintained by the grantee. 

(3) CONTENT OF REPORTS.—The Secretary shall— 

(A) require each recipient of a grant under this section 

to file interim and final reports under paragraph (2) to ensure that grant funds are being used as intended and to 

measure the effectiveness and benefits of the grant program; and 

(B) develop and maintain a means whereby the public 

can access such reports, at no cost, via the Internet. 

(e) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) BUILDING CODE ENFORCEMENT.—The term ‘‘building code 

enforcement’’ means the enforcement of any code, adopted by 

a State or local government, that regulates the construction of 

buildings and facilities to mitigate hazards to life or property. 

Such term includes building codes, electrical codes, energy 

codes, fire codes, fuel gas codes, mechanical codes, and plumbing codes. 

(2) BUILDING CODE ENFORCEMENT DEPARTMENT.—The term 

‘‘building code enforcement department’’ means an inspection 

or enforcement agency of a jurisdiction that is responsible for 

conducting building code enforcement. 

(3) JURISDICTION.—The term ‘‘jurisdiction’’ means a city, 

county, parish, city and county authority, or city and parish 

authority having local authority to enforce building codes and 

regulations and to collect fees for building permits. 

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

of Housing and Urban Development. 

(f) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—There are authorized to be appropriated $20,000,000 for each of fiscal years 2010 through 2014 to the 

Secretary of Housing and Urban Development to carry out the 

provisions of this section. 

(2) RESERVATION.—From the amount made available under 

paragraph (1), the Secretary may reserve not more than 5 percent for administrative costs. 

(3) AVAILABILITY.—Any funds appropriated pursuant to paragraph (1) shall remain available until expended. 

SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT OF COMMUNITY DEVELOPMENT 

BLOCK GRANT FUNDS. 

Section 104 of the Housing and Community Development Act of 

1974 (42 U.S.C. 5304) is amended by adding at the end the following new subsection: 

‘‘(n) REQUIREMENTS FOR BUILDING PERMITS REGARDING SOLAR

ENERGY SYSTEMS.— ‘‘(1) IN GENERAL.—A grant under section 106 for a fiscal year 

may be made only if the grantee certifies to the Secretary 

that— 


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‘‘(A) in the case of a grant under section 106(a) for any 

Indian tribe or insular area, during such fiscal year the 

cost of any permit or license, for construction or installation of any solar energy system for any structure, that is 

required by the tribe or insular area or by any other unit 

of general local government or other political subdivision of 

such tribe or insular area, complies with paragraph (2); 

‘‘(B) in the case of a grant under section 106(b) for any 

metropolitan city or urban county, during such fiscal year 

the cost of any permit or license, for construction or installation of any solar energy system for any structure, that 

is required by the metropolitan city or urban county, or by 

any other political subdivision of such city or county, complies with paragraph (2); and 

‘‘(C) in the case of a grant under section 106(d) for any 

State, during such fiscal year the cost of any permit or license, for construction or installation of any solar energy 

system for any structure, that is required by the State, or 

by any other unit of general local government within any 

nonentitlement area of such State, or other political subdivision within any nonentitlement area of such State or 

such a unit of general local government, complies with 

paragraph (2). 

‘‘(2) LIMITATION ON COST.—The cost of permit or license for 

construction or installation of any solar energy system complies with this paragraph only if such cost does not exceed the 

following amount: 

‘‘(A) RESIDENTIAL STRUCTURES.—In the case of a structure primarily for residential use, $500. 

‘‘(B) NONRESIDENTIAL STRUCTURES.—In the case of a 

structure primarily for nonresidential use, 1.0 percent of 

the total cost of the installation or construction of the solar 

energy system, but not in excess of $10,000. 

‘‘(3) NONCOMPLIANCE.—If the Secretary determines that a 

grantee of a grant made under section 106 is not in compliance 

with a certification under paragraph (1)— 

‘‘(A) the Secretary shall notify the grantee of such determination; and 

‘‘(B) if the grantee has not corrected such noncompliance 

before the expiration of the 6-month period beginning upon 

notification under subparagraph (A), such grantee shall 

not be eligible for 5 percent of any amounts awarded under 

a grant under section 106 for the first fiscal year that commences after the expiration of such 6-month period. 

‘‘(4) SOLAR ENERGY SYSTEM.—For purposes of this subsection, 

the term ‘solar energy system’ means, with respect to a structure, equipment that uses solar energy to generate electricity 

for, or to heat or cool (or provide hot water for use in), such 

structure.’’. 

SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF SOLAR ENERGY SYSTEM. 

(a) REGULATIONS.—Within 180 days after the enactment of this 

Act, the Secretary of Housing and Urban Development, in consultation with the Secretary of Energy, shall issue regulations— 


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(1) to prohibit any private covenant, contract provision, lease 

provision, homeowners’ association rule or bylaw, or similar restriction, that impairs the ability of the owner or lessee of any 

residential structure designed for occupancy by 1 family to install, construct, maintain, or use a solar energy system on such 

residential property; and 

(2) to require that whenever any such covenant, provision, 

rule or bylaw, or restriction requires approval for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and 

shall not be willfully avoided or delayed. 

(b) CONTENTS.—The regulations required under subsection (a) 

shall provide that— 

(1) such a covenant, provision, rule or bylaw, or restriction 

impairs the installation, construction, maintenance, or use of a 

solar energy system if it— 

(A) unreasonably delays or prevents installation, maintenance, or use; 

(B) unreasonably increases the cost of installation, maintenance, or use; or 

(C) precludes use of such a system; and 

(2) any fee or cost imposed on the owner or lessee of such 

a residential structure by such a covenant, provision, rule or 

bylaw, or restriction shall be considered unreasonable if— 

(A) such fee or cost is not reasonable in comparison to 

the cost of the solar energy system or the value of its use; 

or 

(B) treatment of solar energy systems by the covenant, 

provision, rule or bylaw, or restriction is not reasonable in 

comparison with treatment of comparable systems by the 

same covenant, provision, rule or bylaw, or restriction. 

(c) SOLAR ENERGY SYSTEM.—For purposes of this section, the 

term ‘‘solar energy system’’ means, with respect to a structure, 

equipment that uses solar energy to generate electricity for, or to 

heat or cool (or provide hot water for use in), such structure. 

Page 387, line 8, strike ‘‘2011’’ and insert ‘‘2016’’. 

Page 387, line 15, strike ‘‘2013’’ and insert ‘‘2018’’. 

Page 387, line 21, through page 388, line 4, strike paragraph (3). 

Page 388, lines 5 and 13, redesignate paragraphs (4) and (5) as 

paragraphs (3) and (4), respectively. 

Page 388, line 7, strike ‘‘2011’’ and insert ‘‘2016’’. 

Page 388, line 12, insert ‘‘Outdoor luminaires used for roadway 

lighting applications shall be exempt the 2 light level requirement.’’ 

after ‘‘luminaire under test.’’. 

Page 388, line 13, strike ‘‘2017’’ and insert ‘‘2022’’. 

Page 388, lines 15 and 16, strike ‘‘paragraphs (3) and (4)’’ and 

insert ‘‘paragraph (3)’’. 

Page 389, line 1, strike ‘‘(3)’’ and insert ‘‘(2)’’. 

Page 389, line 7, strike ‘‘2020’’ and insert ‘‘2025’’. 

Page 389, line 12, strike ‘‘2012’’ and insert ‘‘2017’’. 


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Page 455, line 19, through page 459, line 13, amend section 217 

to read as follows: 

SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE 

PROGRAMS. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 

State government, local or county government, tribal government, wastewater or sewerage utility, municipal water authority, energy utility, water utility, or nonprofit organization that 

meets the requirements of subsection (b). 

(2) INCENTIVE PROGRAM.—The term ‘‘incentive program’’ 

means a program for administering financial incentives for 

consumer purchase and installation of residential water efficient products and services as described in subsection (b)(1). 

(3) RESIDENTIAL WATER EFFICIENT PRODUCT OR SERVICE.— 

The term ‘‘residential water efficient product or service’’ means 

a product or service for a single-family or multifamily residence or its landscape that is rated for water efficiency and 

performance— 

(A) by the WaterSense program; or 

(B) where a WaterSense specification does not exist, by 

an incentive program. 

Categories of water efficient products and services may include 

faucets, irrigation technologies and services, point-of-use water 

treatment devices, reuse and recycling technologies, toilets, 

and showerheads. 

(4) WATERSENSE PROGRAM.—The term ‘‘WaterSense program’’ means the program established by section 215 of this 

Act. 

(b) ELIGIBLE ENTITIES.—An entity shall be eligible to receive an 

allocation under subsection (c) if the entity— 

(1) establishes (or has established) an incentive program to 

provide rebates, vouchers, other financial incentives, or direct 

installs to consumers for the purchase of residential water efficient products or services; 

(2) submits an application for the allocation at such time, in 

such form, and containing such information as the Administrator may require; and 

(3) provides assurances satisfactory to the Administrator 

that the entity will use the allocation to supplement, but not 

supplant, funds made available to carry out the incentive program. 

(c) AMOUNT OF ALLOCATIONS.—For each fiscal year, the Administrator shall determine the amount to allocate to each eligible entity 

to carry out subsection (d) taking into consideration— 

(1) the population served by the eligible entity in the most 

recent calendar year for which data are available; 

(2) the targeted population of the eligible entity’s incentive 

program, such as general households, low-income households, 

or first-time homeowners, and the probable effectiveness of the 

incentive program for that population; 

(3) for existing programs, the effectiveness of the incentive 

program in encouraging the adoption of water efficient products and services; and 


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(4) any prior year’s allocation to the eligible entity that remains unused. 

(d) USE OF ALLOCATED FUNDS.—Funds allocated to an entity 

under subsection (c) may be used to pay up to 50 percent of the 

cost of establishing and carrying out an incentive program. 

(e) FIXTURE RECYCLING.—Entities are encouraged to promote or 

implement fixture recycling programs to manage the disposal of 

older fixtures replaced due to the incentive program under this section. 

(f) ISSUANCE OF INCENTIVES.—Financial incentives may be provided to consumers that meet the requirements of the incentive 

program. The entity may issue all financial incentives directly to 

consumers or, with approval of the Administrator, delegate some or 

all financial incentives administration to other organizations including, but not limited to, local governments, municipal water authorities, and water utilities. The amount of a financial incentives 

shall be determined by the entity, taking into consideration— 

(1) the amount of the allocation to the entity under subsection (c); 

(2) the amount of any Federal, State, or other organization’s 

tax or financial incentive available for the purchase of the residential water efficient product or service; 

(3) the amount necessary to change consumer behavior to 

purchase water efficient products and services; and 

(4) the consumer expenditures for onsite preparation, assembly, and original installation of the product. 

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

be appropriated to the Administrator to carry out this section 

$50,000,000 for fiscal year 2010, $100,000,000 for fiscal year 2011, 

$150,000,000 for fiscal year 2012, $100,000,000 for fiscal year 2013, 

and $50,000,000 for fiscal year 2014. 

Page 465, line 22, insert ‘‘, including cost effectiveness from the 

consumer’s perspective, and relative length of time for consumers 

to recover costs attributable to the energy efficient features,’’ after 

‘‘relative energy efficiency’’. 

Page 496, before line 13, insert the following new sections: 

SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND 

PROGRAM. 

The National Institute of Standards and Technology Act (15 

U.S.C. 271 et seq.) is amended by inserting after section 26 the following: 

‘‘SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND 

PROGRAM. 

‘‘(a) PURPOSES.—The purposes of this section are as follows: 

‘‘(1) To develop the long-term manufacturing capacity of the 

United States. 

‘‘(2) To create jobs through the retooling and expansion of 

manufacturing facilities to produce clean energy technology 

products and energy efficient products. 

‘‘(3) To improve the long-term competitiveness of domestic 

manufacturing by increasing the energy efficiency of manufacturing facilities. 


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‘‘(4) To assist small and medium-sized manufacturers diversify operations to respond to emerging clean energy technology 

product markets. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) CLEAN ENERGY TECHNOLOGY PRODUCT.—The term ‘clean 

energy technology product’ means technology products relating 

to the following: 

‘‘(A) Wind turbines. 

‘‘(B) Solar energy. 

‘‘(C) Fuel cells. 

‘‘(D) Advanced batteries, battery systems, or storage devices. 

‘‘(E) Biomass equipment. 

‘‘(F) Geothermal equipment. 

‘‘(G) Advanced biofuels. 

‘‘(H) Ocean energy equipment. 

‘‘(I) Carbon capture and storage. 

‘‘(J) Such other products as the Secretary determines— 

‘‘(i) relate to the production, use, transmission, storage, control, or conservation of energy; 

‘‘(ii) reduce greenhouse gas concentrations; 

‘‘(iii) achieve the earliest and maximum emission reductions within a reasonable period per dollar invested; 

‘‘(iv) result in the fewest non-greenhouse gas environmental impacts; and 

‘‘(v) either— 

‘‘(I) reduce the need for additional energy supplies by— 

‘‘(aa) using existing energy supplies with 

greater efficiency; or 

‘‘(bb) by transmitting, distributing, or transporting energy with greater effectiveness 

through the infrastructure of the United 

States; or 

‘‘(II) diversity the sources of energy supply of 

the United States— 

‘‘(aa) to strengthen energy security; and 

‘‘(bb) to increase supplies with a favorable 

balance of environmental effects if the entire 

technology system is considered. 

‘‘(2) ENERGY EFFICIENT PRODUCT.—The term ‘energy efficient 

product’ means a product that, as determined by the Secretary 

in consultation with the Secretary of Energy— 

‘‘(A) consumes significantly less energy than the average 

amount that all similar products consumed on the day before the date of the enactment of this Act; or 

‘‘(B) is a component, system, or group of subsystems that 

is designed, developed, and validated to optimize the energy efficiency of a product. 

‘‘(3) HOLLINGS MANUFACTURING EXTENSION CENTER.—The 

term ‘Hollings Manufacturing Extension Center’ means a center established under section 25. 


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‘‘(4) HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM.—The 

term ‘Hollings Manufacturing Partnership Program’ means the 

program established under sections 25 and 26. 

‘‘(5) PROGRAM.—The term ‘Program’ means the grant program established pursuant to subsection (c)(1). 

‘‘(6) REVOLVING LOAN FUND.—The term ‘revolving loan fund’ 

means a revolving loan fund described in subsection (d). 

‘‘(7) SECRETARY.—Except as otherwise provided, the term 

‘Secretary’ means the Secretary of Commerce. 

‘‘(8) SMALL OR MEDIUM-SIZED MANUFACTURER.—The term 

‘small or medium-sized manufacturer’ means a manufacturer 

that employs fewer than 500 full-time equivalent employees at 

a manufacturing facility that is not owned or controlled by an 

automobile manufacturer. 

‘‘(c) GRANT PROGRAM.— 

‘‘(1) ESTABLISHMENT.—Not later than 120 days after the date 

of the enactment of this section, the Secretary shall establish 

a program under which the Secretary shall award grants to 

States to establish revolving loan funds to provide loans to 

small and medium-sized manufacturers to finance the cost 

of—— 

‘‘(A) reequipping, expanding, or establishing (including 

applicable engineering costs) a manufacturing facility in 

the United States to produce— 

‘‘(i) clean energy technology products; 

‘‘(ii) energy efficient products; or 

‘‘(iii) integral component parts of clean energy technology products or energy efficient products; or 

‘‘(B) reducing the energy intensity or greenhouse gas 

production of a manufacturing facility in the United 

States, including using energy intensive feedstocks. 

‘‘(2) MAXIMUM AMOUNT.—The Secretary may not award a 

grant under the Program in an amount that exceeds 

$500,000,000 in any fiscal year. 

‘‘(d) CRITERIA FOR AWARDING GRANTS.— 

‘‘(1) MATCHING FUNDS.—The Secretary may make a grant to 

a State under the Program only if the State agrees to ensure 

that for each loan provided by the State under the Program, 

not less than 20 percent of the amount of each loan will come 

from a non-Federal source. 

‘‘(2) ADMINISTRATIVE COSTS.—A State receiving a grant under 

the Program may only use such amount of the grant for the 

costs of administering the revolving loan fund as the Secretary 

shall provide in regulations. 

‘‘(3) APPLICATION.—Each State seeking a grant under the 

Program shall submit to the Secretary an application therefor 

in such form and in such manner as the Secretary considers 

appropriate. 

‘‘(4) EVALUATION.—The Secretary shall evaluate and 

prioritize an application submitted by a State for a grant under 

the Program on the basis of— 

‘‘(A) the description of the revolving loan fund to be established with the grant and how such revolving loan fund 

will achieve the purposes described in subsection (a); 


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‘‘(B) whether the State will be able to provide loans from 

the revolving loan fund to small or medium-sized manufacturers before the date that is 120 days after the date on 

which the State receives the grant; 

‘‘(C) a description of how the State will administer the 

revolving loan fund in coordination with other State and 

Federal programs, including programs administered by the 

Assistant Secretary for Economic Development; 

‘‘(D) a description of the actual or potential clean energy 

manufacturing supply chains, including significant component parts, in the region served by the revolving loan fund; 

‘‘(E) how the State will target the provision of loans 

under the Program to manufacturers located in regions 

characterized by high unemployment and sudden and severe economic dislocation, in particular where mass layoffs 

have resulted in a precipitous increase in unemployment; 

‘‘(F) the availability of a skilled manufacturing workforce 

in the region served by the revolving loan fund and the capacity of the region’s workforce and education systems to 

provide pathways for unemployed or low-income workers 

into skilled manufacturing employment; 

‘‘(G) a description of how the State will target loans to 

small or medium-sized manufacturers who are— 

‘‘(i) manufacturers of automobile components; and 

‘‘(ii) either— 

‘‘(I) increasing the energy efficiency of their 

manufacturing facilities; or 

‘‘(II) retooling to manufacture clean energy products or energy efficient products, including manufacturing components to improve the compliance 

of an automobile with fuel economy standards prescribed under section 32902 of title 49, United 

States Code; 

‘‘(H) a description of how the State will use the loan 

fund to achieve the earliest and maximum greenhouse gas 

emission reductions within a reasonable period of time per 

dollar invested and with the fewest non-greenhouse gas 

environmental impacts; and 

‘‘(I) such other factors as the Secretary considers appropriate to ensure that grants awarded under the Program 

effectively and efficiently achieve the purposes described in 

subsection (a). 

‘‘(e) REVOLVING LOAN FUNDS.— 

‘‘(1) IN GENERAL.—A State receiving a grant under the Program shall establish, maintain, and administer a revolving 

loan fund in accordance with this subsection. 

‘‘(2) DEPOSITS.—A revolving loan fund shall consist of the following: 

‘‘(A) Amounts from grants awarded under this section. 

‘‘(B) All amounts held or received by the State incident 

to the provision of loans described in subsection (f), including all collections of principal and interest. 

‘‘(3) EXPENDITURES.—Amounts in the revolving loan fund 

shall be available for the provision and administration of loans 

in accordance with subsection (f). 


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‘‘(4) LIMITATION.—No funds provided pursuant to this section 

may be leveraged through use of tax-exempt bonding authority 

by a State or a political subdivision of a State. 

‘‘(f) LOANS.— 

‘‘(1) IN GENERAL.—A State receiving a grant under this section shall use the amount in the revolving loan fund to provide 

loans to small and medium-sized manufacturers as described 

in subsection (c)(1). 

‘‘(2) LOAN TERMS AND CONDITIONS.—The following shall apply 

with respect to loans provided under paragraph (1): 

‘‘(A) TERMS.—Loans shall have a term determined by the 

State receiving the grant as follows: 

‘‘(i) For fixed assets, the term of the loan shall not 

exceed the useful life of the asset and shall be less 

than 15 years. 

‘‘(ii) For working capital, the term of the loan shall 

not exceed 36 months. 

‘‘(B) INTEREST RATES.—Loans shall bear an interest rate 

determined by the State receiving the grant as follows: 

‘‘(i) The interest rate shall enable the loan recipient 

to accomplish the activities described in subparagraphs (A) and (B) of subsection (c)(1). 

‘‘(ii) The interest rate may be set below-market interest rates. 

‘‘(iii) The interest rate may not be less than zero 

percent. 

‘‘(iv) The interest rate may not exceed the current 

prime rate plus 500 basis points. 

‘‘(C) DESCRIPTION AND BUDGET FOR USE OF LOAN

FUNDS.—Each recipient of a loan from a State under the 

Program shall develop and submit to the State and the 

Secretary a description and budget for the use of loan 

amounts, including a description of the following: 

‘‘(i) Any new business expected to be developed with 

the loan. 

‘‘(ii) Any improvements to manufacturing operations 

to be developed with the loan. 

‘‘(iii) Any technology expected to be commercialized 

with the loan. 

‘‘(D) PRIORITY IN REVIEW AND PREFERENCE IN SELECTION

FOR CERTAIN LOAN APPLICANTS.— 

‘‘(i) REVIEW.—In reviewing applications submitted 

by small or medium-sized manufacturers for a loan, a 

recipient of a grant under the Program shall give priority to small or medium-sized manufacturers described in clause (iii). 

‘‘(ii) SELECTION.—In selecting small or medium-sized 

manufacturers to receive a loan, a recipient of a grant 

under the Program shall give preference to small or 

medium-sized manufacturers described in clause (iii). 

‘‘(iii) PRIORITY AND PREFERRED SMALL OR MEDIUMSIZED MANUFACTURERS.—A small or medium-sized 

manufacturer described in this clause is a manufacturer that— 


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‘‘(I) is certified by a Hollings Manufacturing Extension Center or a manufacturing-related local 

intermediary designated by the Secretary for purposes of providing such certification; or 

‘‘(II) provides individuals employed at the manufacturing facilities of the manufacturer— 

‘‘(aa) pay in amounts that are, on average, 

equal to or more than the average wage of an 

individual working in a manufacturing facility 

in the State; and 

‘‘(bb) health benefits. 

‘‘(iv) CERTIFICATION BY HOLLINGS MANUFACTURING

EXTENSION CENTER.—A Hollings Manufacturing Extension Center or other entity designated by the Secretary for purposes of providing certification under 

clause (iii)(I) shall only certify applications for a loan 

after carrying out a qualitative and quantitative review of the applicant’s business strategy, manufacturing operations, and technological ability to contribute to the purposes described in subsection (a). 

‘‘(E) REPAYMENT UPON RELOCATION OUTSIDE UNITED

STATES.— 

‘‘(i) IN GENERAL.—If a person receives a loan under 

paragraph (1) to finance the cost of reequipping, expanding, or establishing a manufacturing facility as 

described in subsection (c)(1)(A) or to reduce the energy intensity of a manufacturing facility and such 

person relocates the production activities of such manufacturing facility outside the United States during 

the term of the loan, the recipient shall repay such 

loan in full with interest as described in clause (ii) and 

for a duration described in clause (iii). 

‘‘(ii) PAYMENT OF INTEREST.—Any amount owed by 

the recipient of a loan under paragraph (1) who is required to repay the loan under clause (i) shall bear interest at a penalty rate determined by the Secretary 

to deter recipients of loans under paragraph (1) from 

relocating production activities as described in clause 

(i). 

‘‘(iii) PERIOD OF REPAYMENT.—Repayment of a loan 

under clause (i) shall be for a duration determined by 

the Secretary. 

‘‘(F) COMPLIANCE WITH WAGE RATE REQUIREMENTS.— 

Each recipient of a loan shall undertake and agree to incorporate or cause to be incorporated into all contracts for 

construction, alteration or repair, which are paid for in 

whole or in part with funds obtained pursuant to such 

loan, a requirement that all laborers and mechanics employed by contractors and subcontractors performing construction, alteration or repair shall be paid wages at rates 

not less than those determined by the Secretary of Labor, 

in accordance with subchapter IV of chapter 31 of title 40, 

United States Code (known as the ‘Davis-Bacon Act’), to be 

prevailing for the corresponding classes of laborers and 

mechanics employed on projects of a character similar to 


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the contract work in the same locality in which the work 

is to be performed. The Secretary of Labor shall have, with 

respect to the labor standards specified in this subparagraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 

1267) and section 3145 of title 40, United States Code. 

‘‘(G) ANNUAL REPORTS BY LOAN RECIPIENTS.—Each recipient of a loan issued by a State under paragraph (1) shall, 

not less frequently than once each year during the term of 

the loan, submit to such State a report containing such information as the Secretary may specify for purposes of the 

Program, including information that the Secretary can use 

to determine whether a recipient of a loan is required to 

repay the loan under subparagraph (E). 

‘‘(3) ANNUAL REPORTS BY GRANT RECIPIENTS.—Each recipient 

of a grant under the Program shall, not less frequently than 

once each year, submit to the Secretary a report on the impact 

of each loan issued by the State under the Program and the 

aggregate impact of all loans so issued, including the following: 

‘‘(A) The sales increased or retained. 

‘‘(B) Cost savings or costs avoided. 

‘‘(C) Additional investment encouraged. 

‘‘(D) Jobs created or retained. 

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $15,000,000,000 for each 

of fiscal years 2010 and 2011.’’. 

SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING PARTNERSHIPS. 

(a) HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM.—Section 

25(b) of the National Institute of Standards and Technology Act (15 

U.S.C. 278k(b)) is amended— 

(1) in paragraph (2), by striking ‘‘and’’ at the end; 

(2) in paragraph (3), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(4) the establishment of a clean energy manufacturing supply chain initiative— 

‘‘(A) to support manufacturers in their identification of 

and diversification to new markets, including support for 

manufacturers transitioning to the use of clean energy 

supply chains; 

‘‘(B) to assist manufacturers improve their competitiveness by reducing energy intensity and greenhouse gas production, including the use of energy intensive feedstocks; 

‘‘(C) to increase adoption and implementation of innovative manufacturing technologies; 

‘‘(D) to coordinate and leverage the expertise of the National Laboratories and Technology Centers and the Industrial Assessment Centers of the Department of Energy to 

meet the needs of manufacturers; and 

‘‘(E) to identify, assist, and certify manufacturers seeking loans under section 27(e)(1).’’. 

(b) REDUCTION IN COST SHARE REQUIREMENTS.—Section 25(c) of 

such Act (15 U.S.C. 278k(c)) is amended— 


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(1) in paragraph (1), by inserting ‘‘or as provided in paragraph (5)’’ after ‘‘not to exceed six years’’; 

(2) in paragraph (3)(B), by striking ‘‘not less than 50 percent 

of the costs incurred for the first 3 years and an increasing 

share for each of the last 3 years’’ and inserting ‘‘50 percent 

of the costs incurred or such lesser percentage of the costs incurred as determined appropriate by the Secretary by rule’’; 

and 

(3) in paragraph (5)— 

(A) by striking ‘‘at declining levels’’; 

(B) by striking ‘‘one third’’ and inserting ‘‘50 percent’’; 

and 

(C) by inserting ‘‘, or such lesser percentage as determined appropriate by the Secretary by rule,’’ after ‘‘maintenance costs’’. 

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

be appropriated to the Secretary of Commerce for the Hollings 

Manufacturing Partnership Program authorized under sections 25 

of the National Institute of Standards and Technology Act (15 

U.S.C. 278k) and for the provision of assistance under section 26 

of such Act (15 U.S.C. 278l)— 

(1) $200,000,000 for fiscal year 2010; 

(2) $250,000,000 for fiscal year 2011; 

(3) $300,000,000 for fiscal year 2012; 

(4) $350,000,000 for fiscal year 2013; and 

(5) $400,000,000 for fiscal year 2014. 

SEC. 248. TECHNICAL AMENDMENTS. 

(a) AMENDMENT TO NATIONAL INSTITUTE OF STANDARDS AND

TECHNOLOGY ACT.—Section 25 of the National Institute of Standards and Technology Act (15 U.S.C. 278k(b)) is amended— 

(1) in subsection (a), by striking ‘‘(hereafter in this Act referred to as the ‘Centers’)’’; and 

(2) by adding at the end the following: 

‘‘(g) DESIGNATION.— 

‘‘(1) HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM.—The 

program under this section shall be known as the ‘Hollings 

Manufacturing Partnership Program’. 

‘‘(2) HOLLINGS MANUFACTURING EXTENSION CENTERS.—The 

Regional Centers for the Transfer of Manufacturing Technology created and supported under subsection (a) shall be 

known as the ‘Hollings Manufacturing Extension Centers’ (in 

this Act referred to as the ‘Centers’).’’. 

(b) AMENDMENT TO CONSOLIDATED APPROPRIATIONS ACT, 2005.— 

Division B of title II of the Consolidated Appropriations Act, 2005 

(Public Law 108–447; 118 Stat. 2879; 15 U.S.C. 278k note) is 

amended under the heading ‘‘INDUSTRIAL TECHNOLOGY SERVICES’’ 

by striking ‘‘2007: Provided further, That’’ and all that follows 

through ‘‘Extension Centers.’’ and inserting ‘‘2007.’’. 

Page 504, after line 8, insert the following new section: 

SEC. 265. CONSUMER BEHAVIOR RESEARCH. 

(a) IN GENERAL.—The Secretary of Energy is authorized to establish a research program to identify the factors affecting consumer 

actions to conserve energy and make improvements in energy efficiency. Through the program the Secretary will make grants to 


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public and private institutions of higher education to study the effects of consumer behavior on total energy use; potential energy 

savings from changes in consumption habits; the ability to reduce 

greenhouse gas emissions through changes in energy consumption 

habits; increase public awareness of Federal climate adaptation 

and mitigation programs; and the potential for alterations in consumer behavior to further American energy independence. Grants 

may also fund projects that evaluate or inform public knowledge of 

the effects of energy consumption habits on these topics. 

(b) GRANTS.—The purpose of the program is to provide grants to 

public and private institutions of higher education to carry out 

projects which will improve understanding of the effects of consumer behavior on energy consumption and conservation. The Secretary shall make grants on a competitive basis for— 

(1) studies of the effects of consumer habits on energy consumption and conservation; 

(2) development of strategies that communicate the importance of energy efficiency and conservation to consumers; 

(3) identification of best practices to improve consumer energy use habits; 

(4) education programs that inform consumers about the implications of consumption habits on energy use and climate 

change; 

(5) evaluation of the effectiveness of programs designed to 

promote public awareness of Federal Government climate adaptation and mitigation activities; and 

(6) other projects that advance the mission of the program. 

(c) REPORT.—The Secretary of Energy shall provide Congress 

with a report on progress towards establishing the program within 

120 days after the date of enactment of this Act. 

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

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

section. 

Page 521, after line 3, insert the following: 

SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING INITIATIVE. 

(a) IN GENERAL.—The Secretary of Energy shall carry out a national education and awareness program for the purpose of informing building, facility, and industrial plant owners and managers 

and decisionmakers, government leaders, and industry leaders 

about the large energy-saving potential of greater use of mechanical insulation, and other benefits. 

(b) PURPOSE AND GOALS.— 

(1) PURPOSE.—The purpose of the initiative shall be to increase the energy efficiency of the commercial and industrial 

sectors through an ongoing program that will include— 

(A) education and training sessions; 

(B) Web-based information; and 

(C) advertising. 

(2) GOALS.—The goals of the initiative shall be to— 

(A) educate and motivate commercial building owners 

and industrial facility managers to utilize mechanical insulation in new and existing facilities; 


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(B) preserve and create jobs while reducing energy and 

greenhouse gas emissions; 

(C) create a safer working environment and make businesses more competitive in a global economy; and 

(D) motivate and empower the industry to make better 

use of mechanical insulation through awareness, education, and training. 

(c) REPORT.—Not later than July 1, 2013, the Secretary shall 

submit to Congress a report describing the extent by which the initiative has been enacted and the actual and projected effectiveness 

of the program under this section, including the energy efficiency, 

greenhouse gas emissions reductions, cost savings, and safety benefits at manufacturing facilities, power plants, refineries, hospitals, 

universities, government buildings, and other commercial and industrial locations. 

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

be appropriated $3,500,000 for each of fiscal years 2010 through 

2014 to carry out this section. The Secretary may enter into a cooperative agreement, including grant funding, with an industry association and union working collaboratively and having expertise 

on the installation, maintenance, measure of efficiencies and standards, and certification of mechanical insulation in buildings and facilities. 

(e) TERMINATION OF AUTHORITY.—The program carried out under 

this section shall terminate on December 31, 2014. 

SEC. 276. SENSE OF CONGRESS. 

It is the sense of Congress that the United States should— 

(1) continue to actively promote, within the International 

Civil Aviation Organization, the development of a global framework for the regulation of greenhouse gas emissions from civil 

aircraft that recognizes the uniquely international nature of 

the industry and treats commercial aviation industries in all 

countries fairly; and 

(2) work with foreign governments towards a global agreement that reconciles foreign carbon emissions reduction programs to minimize duplicative requirements and avoids unnecessary complication for the aviation industry, while still 

achieving the environmental goals. 

Subtitle H—Green Resources for Energy 

Efficient Neighborhoods 

SEC. 281. SHORT TITLE. 

This subtitle may be cited as the ‘‘Green Resources for Energy 

Efficient Neighborhoods Act of 2009’’ or the ‘‘GREEN Act of 2009’’. 

SEC. 282. DEFINITIONS. 

For purposes of this subtitle, the following definitions shall 

apply: 

(1) GREEN BUILDING STANDARDS.—The term ‘‘green building 

standards’’ means standards to require use of sustainable design principles to reduce the use of nonrenewable resources, 

encourage energy-efficient construction and rehabilitation and 

the use of renewable energy resources, minimize the impact of 


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development on the environment, and improve indoor air quality. 

(2) HUD.—The term ‘‘HUD’’ means the Department of Housing and Urban Development. 

(3) HUD ASSISTANCE.—The term ‘‘HUD assistance’’ means financial assistance that is awarded, competitively or noncompetitively, allocated by formula, or provided by HUD 

through loan insurance or guarantee. 

(4) NONRESIDENTIAL STRUCTURE.—The term ‘‘nonresidential 

structures’’ means only nonresidential structures that are appurtenant to single-family or multifamily housing residential 

structures, or those that are funded by the Secretary of Housing and Urban Development through the HUD Community Development Block Grant program. 

(5) SECRETARY.—The term ‘‘Secretary’’, unless otherwise 

specified, means the Secretary of Housing and Urban Development. 

SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION 

INCENTIVES FOR HUD PROGRAMS. 

(a) IN GENERAL.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary shall issue such regulations as 

may be necessary to establish annual energy efficiency participation incentives to encourage participants in programs administered 

by the Secretary, including recipients under programs for which 

HUD assistance is provided, to achieve substantial improvements 

in energy efficiency. 

(b) REQUIREMENT FOR APPROPRIATION OF FUNDS.—The requirement under subsection (a) for the Secretary to provide annual energy efficiency participation incentives pursuant to the provisions 

of this subtitle shall be subject to the annual appropriation of necessary funds. 

SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR ADDITIONAL CREDIT. 

(a) BASIC HUD STANDARD.— (1) RESIDENTIAL STRUCTURES.—A residential single-family or 

multifamily structure shall be considered to comply with the 

energy efficiency standards under this subsection if— 

(A) the structure complies with an energy efficiency 

building code that has been certified as in compliance with 

section 304 of the Energy Conservation and Production Act 

(42 U.S.C. 6833) as amended by section 201 of this Act, or 

a national energy efficiency building code adopted pursuant to that section; 

(B) the structure complies with the applicable provisions 

of the American Society of Heating, Refrigerating, and AirConditioning Engineers Standard 90.1–2007, as such 

standard or successor standard is in effect for purposes of 

this section pursuant subsection (c); 

(C) the structure complies with the applicable provisions 

of the 2009 International Energy Conservation Code, as 

such standard or successor standard is in effect for purposes of this section pursuant subsection (c); 

(D) in the case only of an existing structure, where determined cost effective, the structure has undergone rehabilitation or improvements, completed after the date of the 


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enactment of this Act, and the energy consumption for the 

structure has been reduced by at least 20 percent from the 

previous level of consumption, as determined in accordance 

with energy audits performed both before and after any rehabilitation or improvements undertaken to reduce such 

consumption; or 

(E) the structure complies with the applicable provisions 

of such other energy efficiency requirements, standards, 

checklists, or ratings systems as the Secretary may adopt 

and apply by regulation, as may be necessary, for purposes 

of this section for specific types of residential single-family 

or multifamily structures or otherwise, except that the 

Secretary shall make a determination regarding whether 

to adopt and apply any such requirements, standards, 

checklists, or rating system for purposes of this section not 

later than the expiration of the 180-day period beginning 

upon the date of receipt of any written request, made in 

such form as the Secretary shall provide, for such adoption 

and application. 

In addition to compliance with any of subparagraphs (A) 

through (E), the Secretary shall by regulation require, for any 

newly constructed residential single-family or multifamily 

structure to be considered to comply with the energy efficiency 

standards under this subsection, that the structure have appropriate electrical outlets with the facility and capacity to recharge a standard electric passenger vehicle, including an electric hybrid vehicle, where such vehicle would normally be 

parked. 

(2) NONRESIDENTIAL STRUCTURES.—For purposes of this section, the Secretary shall identify and adopt by regulation, as 

may be necessary, energy efficiency requirements, standards, 

checklists, or rating systems applicable to nonresidential structures that are constructed or rehabilitated with HUD assistance. A nonresidential structure shall be considered to comply 

with the energy efficiency standards under this subsection if 

the structure complies with the applicable provisions of any 

such energy efficiency requirements, standards, checklist, or 

rating systems identified and adopted by the Secretary pursuant to this paragraph, as such standards are in effect for purposes of this section pursuant to subsection (c). 

(3) EFFECT.—Nothing in this subsection may be construed to 

require any structure to comply with any standard established 

or adopted pursuant to this subsection, or identified in this 

subsection, or to provide any benefit or credit under any Federal program for any structure that complies with any such 

standard, except to the extent that— 

(A) any provision of law other than this subsection provides a benefit or credit under a Federal program for compliance with a standard established or adopted pursuant to 

this subsection, or identified in this subsection; or 

(B) the Secretary specifically provides pursuant to subsection (c) for the applicability of such standard. 

(b) ENHANCED ENERGY EFFICIENCY STANDARDS FOR PURPOSES OF

PROVIDING ADDITIONAL CREDIT UNDER CERTAIN FEDERALLY ASSISTED HOUSING PROGRAMS.— 


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(1) PURPOSE AND EFFECT.— (A) PURPOSE.—The purpose of this subsection is to establish energy efficiency and conservation standards and 

green building standards that— 

(i) provide for greater energy efficiency and conservation in structures than is required for compliance 

with the energy efficiency standards under subsection 

(a) and then in effect; 

(ii) provide for green and sustainable building standards not required by such standards; and 

(iii) can be used in connection with Federal housing, 

housing finance, and development programs to provide 

incentives for greater energy efficiency and conservation and for green and sustainable building methods, 

elements, practices, and materials. 

(B) EFFECT.—Nothing in this subsection may be construed to require any structure to comply with any standard established pursuant to this subsection or to provide 

any benefit or credit under any Federal program for any 

structure, except to the extent that any provision of law 

other than this subsection provides a benefit or credit 

under a Federal program for compliance with a standard 

established pursuant to this subsection. 

(2) COMPLIANCE.—A residential or nonresidential structure 

shall be considered to comply with the enhanced energy efficiency and conservation standards or the green building standards under this subsection, to the extent that such structure 

complies with the applicable provisions of the standards under 

paragraph (3) or (4), respectively (as such standards are in effect for purposes of this section, pursuant to paragraph (7)), in 

a manner that is not required for compliance with the energy 

efficiency standards under subsection (a) then in effect and 

subject to the Secretary’s determination of which standards are 

applicable to which structures. 

(3) ENERGY EFFICIENCY AND CONSERVATION STANDARDS.—The 

energy efficiency and conservation standards under this paragraph are as follows: 

(A) RESIDENTIAL STRUCTURES.—With respect to residential structures: 

(i) NEW CONSTRUCTION.—For new construction, the 

Energy Star standards established by the Environmental Protection Agency, as such standards are in effect for purposes of this subsection pursuant to paragraph (7); 

(ii) EXISTING STRUCTURES.—For existing structures, 

a reduction in energy consumption from the previous 

level of consumption for the structure, as determined 

in accordance with energy audits performed both before and after any rehabilitation or improvements undertaken to reduce such consumption, that exceeds the 

reduction necessary for compliance with the energy efficiency standards under subsection (a) then in effect 

and applicable to existing structures. 

(B) NONRESIDENTIAL STRUCTURES.—With respect to nonresidential structures, such energy efficiency and conservaVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00043 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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tion requirements, standards, checklists, or rating systems 

for nonresidential structures as the Secretary shall identify and adopt by regulation, as may be necessary, for purposes of this paragraph. 

(4) GREEN BUILDING STANDARDS.—The green building standards under this paragraph are as follows: 

(A) The national Green Communities criteria checklist 

for residential construction that provides criteria for the 

design, development, and operation of affordable housing, 

as such checklist or successor checklist is in effect for purposes of this section pursuant to paragraph (7). 

(B) The gold certification level for the LEED for New 

Construction rating system, the LEED for Homes rating 

system, the LEED for Core and Shell rating system, as applicable, as such systems or successor systems are in effect 

for purposes of this section pursuant to paragraph (7). 

(C) The Green Globes assessment and rating system of 

the Green Buildings Initiative. 

(D) For manufactured housing, energy star rating with 

respect to fixtures, appliances, and equipment in such 

housing, as such standard or successor standard is in effect for purposes of this section pursuant to paragraph (7). 

(E) The National Green Building Standard. 

(F) Any other requirements, standards, checklists, or 

rating systems for green building or sustainability as the 

Secretary may identify and adopt by regulation, as may be 

necessary for purposes of this paragraph, except that the 

Secretary shall make a determination regarding whether 

to adopt and apply any such requirements, standards, 

checklist, or rating system for purposes of this section not 

later than the expiration of the 180-day period beginning 

upon date of receipt of any written request, made in such 

form as the Secretary shall provide, for such adoption and 

application. 

(5) GREEN BUILDING.—For purposes of this subsection, the 

term ‘‘green building’’ means, with respect to standards for 

structures, standards to require use of sustainable design principles to reduce the use of nonrenewable resources, minimize 

the impact of development on the environment, and to improve 

indoor air quality. 

(6) ENERGY AUDITS.—The Secretary shall establish standards 

and requirements for energy audits for purposes of paragraph 

(3)(A)(ii) and, in establishing such standards, may consult with 

any advisory committees established pursuant to section 

285(c)(2) of this subtitle. 

(7) APPLICABILITY AND UPDATING OF STANDARDS.— 

(A) APPLICABILITY.—Except as provided in subparagraph 

(B), the requirements, standards, checklists, and rating 

systems referred to in this subsection that are in effect for 

purposes of this subsection are such requirements, standards, checklists, and systems are as in existence upon the 

date of the enactment of this Act. 

(B) UPDATING.—For purposes of this section, the Secretary may adopt and apply by regulation, as may be necessary, future amendments and supplements to, and ediVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00044 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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tions of, the requirements, standards, checklists, and rating systems referred to in this subsection, including applicable energy efficiency building codes that are certified as 

in compliance with section 304 of the Energy Conservation 

and Production Act (42 U.S.C. 6833) as amended by section 201 of this Act, or national energy efficiency building 

codes adopted pursuant to that section. 

(c) AUTHORITY OF SECRETARY TO APPLY STANDARDS TO FEDER- ALLY ASSISTED HOUSING AND PROGRAMS.— (1) HUD HOUSING AND PROGRAMS.—The Secretary of Housing and Urban Development may, by regulation, provide for 

the applicability of the energy efficiency standards under subsection (a) or the enhanced energy efficiency and conservation 

standards and green building standards under subsection (b), 

or both, with respect to any covered federally assisted housing 

described in paragraph (3)(A) or any HUD assistance, subject 

to minimum Federal codes or standards then in effect. 

(2) RURAL HOUSING.—The Secretary of Agriculture may, by 

regulation, provide for the applicability of the energy efficiency 

standards under subsection (a) or the enhanced energy efficiency and conservation standards and green building standards under subsection (b), or both, with respect to any covered 

federally assisted housing described in paragraph (3)(B) or any 

assistance provided with respect to rural housing by the Rural 

Housing Service of the Department of Agriculture, subject to 

minimum Federal codes or standards then in effect. 

(3) COVERED FEDERALLY ASSISTED HOUSING.—For purposes of 

this subsection, the term ‘‘covered federally assisted housing’’ 

means— 

(A) any residential or nonresidential structure for which 

any HUD assistance is provided; and 

(B) any new construction of single-family housing (other 

than manufactured homes) subject to mortgages insured, 

guaranteed, or made by the Secretary of Agriculture under 

title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.). 

SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION 

PROGRAM FOR MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-BASED RENTAL ASSISTANCE. 

(a) AUTHORITY.—For multifamily housing projects for which 

project-based rental assistance is provided under a covered multifamily assistance program, the Secretary shall, subject to the availability of amounts provided in advance in appropriation Acts, carry 

out a program to demonstrate the effectiveness of funding a portion 

of the costs of meeting the enhanced energy efficiency standards 

under section 284(b). At the discretion of the Secretary, the demonstration program may include incentives for housing that is assisted with Indian housing block grants provided pursuant to the 

Native American Housing Assistance and Self-Determination Act of 

1996, but only to the extent that such inclusion does not violate 

such Act, its regulations, and the goal of such Act of tribal self-determination. 

(b) GOALS.—The demonstration program under this section shall 

be carried out in a manner that— 

(1) protects the financial interests of the Federal Government; 


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(2) reduces the proportion of funds provided by the Federal 

Government and by owners and residents of multifamily housing projects that are used for costs of utilities for the projects; 

(3) encourages energy efficiency and conservation by owners 

and residents of multifamily housing projects and installation 

of renewable energy improvements, such as improvements providing for use of solar, wind, geothermal, or biomass energy 

sources; 

(4) creates incentives for project owners to carry out such energy efficiency renovations and improvements by allowing a 

portion of the savings in operating costs resulting from such 

renovations and improvements to be retained by the project 

owner, notwithstanding otherwise applicable limitations on 

dividends; 

(5) promotes the installation, in existing residential buildings, of energy-efficient and cost-effective improvements and 

renewable energy improvements, such as improvements providing for use of solar, wind, geothermal, or biomass energy 

sources; 

(6) tests the efficacy of a variety of energy efficiency measures for multifamily housing projects of various sizes and in 

various geographic locations; 

(7) tests methods for addressing the various, and often competing, incentives that impede owners and residents of multifamily housing projects from working together to achieve energy efficiency or conservation; and 

(8) creates a database of energy efficiency and conservation, 

and renewable energy, techniques, energy-savings management practices, and energy efficiency and conservation financing vehicles. 

(c) APPROACHES.—In carrying out the demonstration program 

under this section, the Secretary may— 

(1) enter into agreements with the Building America Program of the Department of Energy and other consensus committees under which such programs, partnerships, or committees assume some or all of the functions, obligations, and benefits of the Secretary with respect to energy savings; 

(2) establish advisory committees to advise the Secretary and 

any such third-party partners on technological and other developments in the area of energy efficiency and the creation of an 

energy efficiency and conservation credit facility and other financing opportunities, which committees shall include representatives of homebuilders, realtors, architects, nonprofit 

housing organizations, environmental protection organizations, 

renewable energy organizations, and advocacy organizations 

for the elderly and persons with disabilities; any advisory committees established pursuant to this paragraph shall not be 

subject to the Federal Advisory Committee Act (5 U.S.C. App.); 

(3) approve, for a period not to exceed 10 years, additional 

adjustments in the maximum monthly rents or additional 

project rental assistance, or additional Indian housing block 

grant funds under the Native American Housing Assistance 

and Self-Determination Act of 1996, as applicable, for dwelling 

units in multifamily housing projects that are provided projectbased rental assistance under a covered multifamily assistance 


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program, in such amounts as may be necessary to amortize a 

portion of the cost of energy efficiency and conservation measures for such projects; 

(4) develop a competitive process for the award of such additional assistance for multifamily housing projects seeking to 

implement energy efficiency, renewable energy sources, or conservation measures; and 

(5) waive or modify any existing statutory or regulatory provision that would otherwise impair the implementation or effectiveness of the demonstration program under this section, 

including provisions relating to methods for rent adjustments, 

comparability standards, maximum rent schedules, and utility 

allowances; notwithstanding the preceding provisions of this 

paragraph, the Secretary may not waive any statutory requirement relating to fair housing, nondiscrimination, labor standards, or the environment, except pursuant to existing authority 

to waive nonstatutory environmental and other applicable requirements. 

(d) REQUIREMENT.—During the 4-year period beginning 12 

months after the date of the enactment of this Act, the Secretary 

shall carry out demonstration programs under this section with respect to not fewer than 50,000 dwelling units. 

(e) SELECTION.— (1) SCOPE.—In order to provide a broad and representative 

profile for use in designing a program which can become operational and effective nationwide, the Secretary shall carry out 

the demonstration program under this section with respect to 

dwelling units located in a wide variety of geographic areas 

and project types assisted by the various covered multifamily 

assistance programs and using a variety of energy efficiency 

and conservation and funding techniques to reflect differences 

in climate, types of dwelling units and technical and scientific 

methodologies, and financing options. The Secretary shall ensure that the geographic areas included in the demonstration 

program include dwelling units on Indian lands (as such term 

is defined in section 2601 of the Energy Policy Act of 1992 (25 

U.S.C. 3501), to the extent that dwelling units on Indian land 

have the type of residential structures that are the focus of the 

demonstration program. 

(2) PRIORITY.—The Secretary shall provide priority for selection for participation in the program under this section based 

on the extent to which, as a result of assistance provided, the 

project will comply with the energy efficiency standards under 

subsection (a), (b), or (c) of section 284 of this subtitle. 

(f) USE OF EXISTING PARTNERSHIPS.—To the extent feasible, the 

Secretary shall— 

(1) utilize the Partnership for Advancing Technology in 

Housing of the Department of Housing and Urban Development to assist in carrying out the requirements of this section 

and to provide education and outreach regarding the demonstration program authorized under this section; and 

(2) consult with the Secretary of Energy, the Administrator 

of the Environmental Protection Agency, and the Secretary of 

the Army regarding utilizing the Building America Program of 

the Department of Energy, the Energy Star Program, and the 


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Army Corps of Engineers, respectively, to determine the manner in which they might assist in carrying out the goals of this 

section and providing education and outreach regarding the 

demonstration program authorized under this section. 

(g) LIMITATION.—No amounts made available under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) 

may be used to carry out the demonstration program under this 

section. 

(h) REPORTS.— 

(1) ANNUAL.—Not later than the expiration of the 2-year beginning upon the date of the enactment of this Act, and for 

each year thereafter during the term of the demonstration program, the Secretary shall submit a report to the Congress annually that describes and assesses the demonstration program 

under this section. 

(2) FINAL.—Not later than 6 months after the expiration of 

the 4-year period described in subsection (d), the Secretary 

shall submit a final report to the Congress assessing the demonstration program, which— 

(A) shall assess the potential for expanding the demonstration program on a nationwide basis; and 

(B) shall include descriptions of— 

(i) the size of each multifamily housing project for 

which assistance was provided under the program; 

(ii) the geographic location of each project assisted, 

by State and region; 

(iii) the criteria used to select the projects for which 

assistance is provided under the program; 

(iv) the energy efficiency and conservation measures 

and financing sources used for each project that is assisted under the program; 

(v) the difference, before and during participation in 

the demonstration program, in the amount of the 

monthly assistance payments under the covered multifamily assistance program for each project assisted 

under the program; 

(vi) the average length of the term of the such assistance provided under the program for a project; 

(vii) the aggregate amount of savings generated by 

the demonstration program and the amount of savings 

expected to be generated by the program over time on 

a per-unit and aggregate program basis; 

(viii) the functions performed in connection with the 

implementation of the demonstration program that 

were transferred or contracted out to any third parties; 

(ix) an evaluation of the overall successes and failures of the demonstration program; and 

(x) recommendations for any actions to be taken as 

a result of the such successes and failures. 

(3) CONTENTS.—Each annual report pursuant to paragraph 

(1) and the final report pursuant to paragraph (2) shall include— 


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(A) a description of the status of each multifamily housing project selected for participation in the demonstration 

program under this section; and 

(B) findings from the program and recommendations for 

any legislative actions. 

(i) COVERED MULTIFAMILY ASSISTANCE PROGRAM.—For purposes 

of this section, the term ‘‘covered multifamily assistance program’’ 

means— 

(1) the program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental assistance; 

(2) the program under section 202 of the Housing Act of 1959 

(12 U.S.C. 1701q) for assistance for supportive housing for the 

elderly; 

(3) the program under section 811 of the Cranston-Gonzalez 

National Affordable Housing Act (42 U.S.C. 8013) for supportive housing for persons with disabilities; 

(4) the program under section 236 of the National Housing 

Act (12 U.S.C. 1715z–1 for assistance for rental housing 

projects; 

(5) the program under section 515 of the Housing Act of 1949 

(42 U.S.C. 1485) for rural rental housing; and 

(6) the program for assistance under the Native American 

Housing Assistance and Self-Determination Act of 1996 (25 

U.S.C. 4111). 

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

be appropriated to carry out this section, including providing rent 

adjustments, additional project rental assistance, and incentives, 

$50,000,000 for each fiscal year in which the demonstration program under this section is carried out. 

(k) REGULATIONS.—Not later than the expiration of the 180-day 

period beginning on the date of the enactment of this Act, the Secretary shall issue any regulations necessary to carry out this section. 

SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC 

HOUSING GOALS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT MORTGAGES. 

Section 1336(a) of the Housing and Community Development Act 

of 1992 (12 U.S.C. 4566(a)), as amended by the Federal Housing Finance Regulatory Reform Act of 2008 (Public Law 110–289; 122 

Stat. 2654), is amended— 

(1) in paragraph (2), by striking ‘‘paragraph (5)’’ and inserting ‘‘paragraphs (5) and (6)’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(6) ADDITIONAL CREDIT.— 

‘‘(A) IN GENERAL.—In assigning credit toward achievement under this section of the housing goals for mortgage 

purchase activities of the enterprises, the Director shall assign— 

‘‘(i) more than 125 percent credit, for any such purchase that both— 

‘‘(I) complies with the requirements of such 

goals; and 

‘‘(II)(aa) supports housing that meets the energy 

efficiency standards under section 284(a) of the 


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Green Resources for Energy Efficient Neighborhoods Act of 2009; or 

‘‘(bb) is a location-efficient mortgage, as such 

term is defined in section 1335(e); and 

‘‘(ii) credit in addition to credit under clause (i), for 

any such purchase that both— 

‘‘(I) complies with the requirements of such 

goals, and 

‘‘(II) supports housing that complies with the 

enhanced energy efficiency and conservation 

standards, or the green building standards, under 

section 284(b) of such Act, or both, 

and such additional credit shall be given based on the 

extent to which the housing supported with such purchases complies with such standards. 

‘‘(B) TREATMENT OF ADDITIONAL CREDIT.—The availability of additional credit under this paragraph shall not 

be used to increase any housing goal, subgoal, or target established under this subpart.’’. 

SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT MORTGAGES. 

Section 1335 of Federal Housing Enterprises Financial Safety 

and Soundness Act of 1992 (12 U.S.C. 4565), as amended by the 

Federal Housing Finance Regulatory Reform Act of 2008 (Public 

Law 110–289; 122 Stat. 2654), is amended— 

(1) in subsection (a)(1), by adding at the end the following 

new subparagraph: 

‘‘(D) MARKETS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT MORTGAGES.— 

‘‘(i) DUTY.—Subject to clause (ii), the enterprise shall 

develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy-efficient and location-efficient mortgages on housing for 

very low-, low-, and moderate-income families, and for 

second and junior mortgages made for purposes of energy efficiency or renewable energy improvements, or 

both. 

‘‘(ii) AUTHORITY TO SUSPEND.—Notwithstanding any 

other provision of this section, the Director may suspend the applicability of the requirement under clause 

(i) with respect to an enterprise, for such period as is 

necessary, if the Director determines that exigent circumstances exist and such suspension is appropriate 

to ensure the safety and soundness of the portfolio 

holdings of the enterprise.’’; 

(2) by adding at the end the following new subsection: 

‘‘(e) DEFINITIONS.—For purposes of this section, the following 

definitions shall apply: 

‘‘(1) ENERGY-EFFICIENT MORTGAGE.—The term ‘energy-efficient mortgage’ means a mortgage loan under which the income of the borrower, for purposes of qualification for such 

loan, is considered to be increased by not less than $1 for each 

$1 of savings projected to be realized by the borrower as a result of cost-effective energy-saving design, construction or improvements (including use of renewable energy sources, such 


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as solar, geothermal, biomass, and wind, super-insulation, energy-saving windows, insulating glass and film, and radiant 

barrier) for the home for which the loan is made. 

‘‘(2) LOCATION-EFFICIENT MORTGAGE.—The term ‘location-efficient mortgage’ means a mortgage loan under which— 

‘‘(A) the income of the borrower, for purposes of qualification for such loan, is considered to be increased by not 

less than $1 for each $1 of savings projected to be realized 

by the borrower because the location of the home for which 

loan is made will result in decreased transportation costs 

for the household of the borrower; or 

‘‘(B) the sum of the principal, interest, taxes, and insurance due under the mortgage loan is decreased by not less 

than $1 for each $1 of savings projected to be realized by 

the borrower because the location of the home for which 

loan is made will result in decreased transportation costs 

for the household of the borrower.’’. 

SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA 

MORTGAGE INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE HAWAIIAN LOAN GUARANTEE PROGRAMS. 

(a) FHA MORTGAGE INSURANCE.— 

(1) REQUIREMENT.—Title V of the National Housing Act is 

amended by adding after section 542 (12 U.S.C. 1735f–20) the 

following new section: 

‘‘SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY. 

‘‘(a) UNDERWRITING STANDARDS.—The Secretary shall establish a 

method to consider, in its underwriting standards for mortgages on 

single-family housing meeting the energy efficiency standards 

under section 284(a) of the Green Resources for Energy Efficient 

Neighborhoods Act of 2009 that are insured under this Act, the impact that savings on utility costs has on the income of the mortgagor. 

‘‘(b) GOAL.—It is the sense of the Congress that, in carrying out 

this Act, the Secretary should endeavor to insure mortgages on single-family housing meeting the energy efficiency standards under 

section 284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 2009 such that at least 50,000 such mortgages are 

insured during the period beginning upon the date of the enactment of such Act and ending on December 31, 2012.’’. 

(2) REPORTING ON DEFAULTS.—Section 540(b) of the National 

Housing Act (12 U.S.C. 1735f–18(b)) is amended by adding at 

the end the following new paragraph: 

‘‘(3) With respect to each collection period that commences 

after December 31, 2011, the total number of mortgages on single-family housing meeting the energy efficiency standards 

under section 284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 2009 that are insured by the Secretary during the applicable collection period, the number of 

defaults and foreclosures occurring on such mortgages during 

such period, the percentage of the total of such mortgages insured during such period on which defaults and foreclosure occurred, and the rate for such period of defaults and foreclosures on such mortgages compared to the overall rate for 


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such period of defaults and foreclosures on mortgages for single-family housing insured under this Act by the Secretary.’’. 

(b) INDIAN HOUSING LOAN GUARANTEES.— (1) REQUIREMENT.—Section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a) is amended— 

(A) by redesignating subsection (l) as subsection (m); and 

(B) by inserting after subsection (k) the following new 

subsection: 

‘‘(l) CONSIDERATION OF ENERGY EFFICIENCY.—The Secretary shall 

establish a method to consider, in its underwriting standards for 

loans for single-family housing meeting the energy efficiency standards under section 284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 2009 that are guaranteed under this 

section, the impact that savings on utility costs has on the income 

of the borrower.’’. 

(2) REPORTING ON DEFAULTS.—Section 540(b) of the National 

Housing Act (12 U.S.C. 1735f–18(b)), as amended by subsection 

(a)(2) of this section, is further amended by adding at the end 

the following new paragraph: 

‘‘(4) With respect to each collection period that commences 

after December 31, 2011, the total number of loans guaranteed 

under section 184 of the Housing and Community Development 

Act of 1992 (12 U.S.C. 1715z–13a) on single-family housing 

meeting the energy efficiency standards under section 284(a) of 

the Green Resources for Energy Efficient Neighborhoods Act of 

2009 that are guaranteed by the Secretary during the applicable collection period, the number of defaults and foreclosures 

occurring on such loans during such period, the percentage of 

the total of such loans guaranteed during such period on which 

defaults and foreclosure occurred, and the rate for such period 

of defaults and foreclosures on such loans compared to the 

overall rate for such period of defaults and foreclosures on 

loans for single-family housing guaranteed under such section 

184 by the Secretary.’’. 

(c) NATIVE HAWAIIAN HOUSING LOAN GUARANTEES.— (1) REQUIREMENT.—Section 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13b) is 

amended by inserting after subsection (l) the following new 

subsection: 

‘‘(m) ENERGY-EFFICIENT HOUSING REQUIREMENT.—The Secretary 

shall establish a method to consider, in its underwriting standards 

for loans for single-family housing meeting the energy efficiency 

standards under section 284(a) of the Green Resources for Energy 

Efficient Neighborhoods Act of 2009 that are guaranteed under this 

section, the impact that savings on utility costs has on the income 

of the borrower.’’. 

(2) REPORTING ON DEFAULTS.—Section 540(b) of the National 

Housing Act (12 U.S.C. 1735f–18(b)), as amended by the preceding provisions of this section, is further amended by adding 

at the end the following new paragraph: 

‘‘(5) With respect to each collection period that commences 

after December 31, 2011, the total number of loans guaranteed 

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ing meeting the energy efficiency standards under section 

284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 2009 that are guaranteed by the Secretary during 

the applicable collection period, the number of defaults and 

foreclosures occurring on such loans during such period, the 

percentage of the total of such loans guaranteed during such 

period on which defaults and foreclosure occurred, and the rate 

for such period of defaults and foreclosures on such loans compared to the overall rate for such period of defaults and foreclosures on loans for single-family housing guaranteed under 

such section 184A by the Secretary.’’. 

SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT 

MORTGAGES EDUCATION AND OUTREACH CAMPAIGN. 

Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 1701z– 

16) is amended by adding at the end the following new subsection: 

‘‘(g) EDUCATION AND OUTREACH CAMPAIGN.— 

‘‘(1) DEVELOPMENT OF ENERGY- AND LOCATION-EFFICIENT

MORTGAGES OUTREACH PROGRAM.— 

‘‘(A) COMMISSION.—The Secretary, in consultation and 

coordination with the Secretary of Energy, the Secretary of 

Education, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency, shall establish a commission to develop and recommend model 

mortgage products and underwriting guidelines that provide market-based incentives to prospective home buyers, 

lenders, and sellers to incorporate energy efficiency upgrades and location efficiencies in new mortgage loan 

transactions. 

‘‘(B) REPORT.—Not later than 24 months after the date 

of the enactment of this Act, the Secretary shall provide a 

written report to the Congress on the results of work of 

the commission established pursuant to subparagraph (A) 

and that identifies model mortgage products and underwriting guidelines that may encourage energy and location 

efficiency. 

‘‘(2) IMPLEMENTATION.—After submission of the report under 

paragraph (1)(B), the Secretary, in consultation and coordination with the Secretary of Energy, the Secretary of Education, 

and the Administrator of the Environmental Protection Agency, shall carry out a public awareness, education, and outreach 

campaign based on the findings of the commission established 

pursuant to paragraph (1) to inform and educate residential 

lenders and prospective borrowers regarding the availability, 

benefits, advantages, and terms of energy-efficient mortgages 

and location-efficient mortgages made available pursuant to 

this section, energy-efficient and location-efficient mortgages 

that meet the requirements of section 1335 of the Housing and 

Community Development Act of 1992 (42 U.S.C. 4565), and 

other mortgages, including mortgages for multifamily housing, 

that have energy improvement features or location efficiency 

features and to publicize such availability, benefits, advantages, and terms. Such actions may include entering into a 

contract with an appropriate entity to publicize and market 

such mortgages through appropriate media. 


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‘‘(3) RENEWABLE ENERGY HOME PRODUCT EXPOS.—The Congress hereby encourages the Secretary of Housing and Urban 

Development to work with appropriate entities to organize and 

hold renewable energy expositions that provide an opportunity 

for the public to view and learn about renewable energy products for the home that are currently on the market. 

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this subsection $5,000,000 for each of fiscal years 2010 through 2014.’’. 

SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND 

LOCATION-EFFICIENT MORTGAGES THROUGH HOME 

MORTGAGE DISCLOSURE ACT. 

(a) IN GENERAL.—Section 304(b) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end and 

inserting a semicolon; and 

(3) by adding at the end the following new paragraphs: 

‘‘(5) the number and dollar amount of mortgage loans for single-family housing and for multifamily housing that are energy-efficient mortgages (as such term is defined in section 

1335 of Housing and Community Development Act of 1992); 

and 

‘‘(6) the number and dollar amount of mortgage loans for single-family housing and for multifamily housing that are location-efficient mortgages (as such term is defined in section 

1335 of Housing and Community Development Act of 1992).’’. 

(b) APPLICABILITY.—The amendment made by subsection (a) shall 

apply with respect to the first calendar year that begins after the 

expiration of the 30-day period beginning on the date of the enactment of this Act. 

SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE 

FOR HOMES NOT CONNECTED TO ELECTRICITY GRID. 

(a) CONGRESSIONAL INTENT.—The Congress intends that— 

(1) consumers shall not be denied homeowners insurance for 

a dwelling (as such term is defined in subsection (c)) based 

solely on the fact that the dwelling is not connected to or able 

to receive electricity service from any wholesale or retail electric power provider; 

(2) States should ensure that consumers are able to obtain 

homeowners insurance for such dwellings; 

(3) States should support insurers that develop voluntary incentives to provide such insurance; and 

(4) States may not prohibit insurers from offering a homeowners insurance product specifically designed for such dwellings. 

(b) INSURING HOMES AND RELATED PROPERTY IN INDIAN AREAS.— 

Notwithstanding any other provision of law, dwellings located in 

Indian areas (as such term is defined in section 4 of the Native 

American Housing Assistance and Self-Determination Act of 1996 

(25 U.S.C. 4103)) and constructed or maintained using assistance, 

loan guarantees, or other authority under the Native American 

Housing Assistance and Self-Determination Act of 1996 may be insured by any tribally owned self-insurance risk pool approved by 

the Secretary of Housing and Urban Development. 


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(c) DWELLING.—For purposes of this section, the term ‘‘dwelling’’ 

means a residential structure that— 

(1) consists of one to four dwelling units; 

(2) is provided electricity from renewable energy sources; and 

(3) is not connected to any wholesale or retail electrical 

power grid. 

SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING. 

(a) IN GENERAL.—The Secretary of Housing and Urban Development shall establish incentives for increasing the energy efficiency 

of multifamily housing that is subject to a mortgage to be insured 

under title II of the National Housing Act (12 U.S.C. 1707 et seq.) 

so that the housing meets the energy efficiency standards under 

section 284(a) of this subtitle and incentives to encourage compliance of such housing with the energy efficiency and conservation 

standards, and the green building standards, under section 284(b) 

of this subtitle, to the extent that such incentives are based on the 

impact that savings on utility costs has on the operating costs of 

the housing, as determined by the Secretary. 

(b) INCENTIVES.—Such incentives may include, for any such multifamily housing that complies with the energy efficiency standards 

under section 284(a)— 

(1) providing a discount on the chargeable premiums for the 

mortgage insurance for such housing from the amount otherwise chargeable for such mortgage insurance; 

(2) allowing mortgages to exceed the dollar amount limits 

otherwise applicable under law to the extent such additional 

amounts are used to finance improvements or measures designed to meet the standards referred to in subsection (a); and 

(3) reducing the amount that the owner of such multifamily 

housing meeting the standards referred to in subsection (a) is 

required to contribute. 

SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED 

HOUSING WITH MORTGAGES. 

Section 526 of the National Housing Act (12 U.S.C. 1735f–4(a)) 

is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘, other than manufactured homes,’’ each 

place such term appears; 

(B) by inserting after the period at the end the following: 

‘‘The energy performance requirements developed and established by the Secretary under this section for manufactured homes shall require energy star rating for wall fixtures, appliances, and equipment in such housing.’’; 

(C) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

(D) by adding at the end the following new paragraphs: 

‘‘(2) The Secretary shall require, with respect to any single- or 

multi-family residential housing subject to a mortgage insured 

under this Act, that any approval or certification of the housing for 

meeting any energy efficiency or conservation criteria, standards, 

or requirements pursuant to this title and any approval or certification required pursuant to this title with respect to energy-conserving improvements or any renewable energy sources, such as 

wind, solar energy geothermal, or biomass, shall be conducted only 

by an individual certified by a home energy rating system provider 


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who has been accredited to conduct such ratings by the Home Energy Ratings System Council, the Residential Energy Services Network, or such other appropriate national organization, as the Secretary may provide, or by licensed professional architect or engineer. If any organization makes a request to the Secretary for approval to accredit individuals to conduct energy efficiency or conservation ratings, the Secretary shall review and approve or disapprove such request not later than the expiration of the 6-month 

period beginning upon receipt of such request. 

‘‘(3) The Secretary shall periodically examine the method used to 

conduct inspections for compliance with the requirements under 

this section, analyze various other approaches for conducting such 

inspections, and review the costs and benefits of the current method compared with other methods.’’; and 

(2) in subsection (b), by striking ‘‘, other than a manufactured home,’’. 

SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM. 

(a) AUTHORITY.—Not later than the expiration of the 12-month 

period beginning on the date of the enactment of this Act, the Secretary shall develop and implement a pilot program under this section to facilitate the financing of cost-effective capital improvements for covered assisted housing projects to improve the energy 

efficiency and conservation of such projects. 

(b) LOANS.—The pilot program under this section shall involve 

not less than three and not more than five lenders, and shall provide for a privately financed loan to be made for a covered assisted 

housing project, which shall— 

(1) finance capital improvements for the project that meet 

such requirements as the Secretary shall establish, and may 

involve contracts with third parties to perform such capital improvements, including the design of such improvements by licensed professional architects or engineers; 

(2) have a term to maturity of not more than 20 years, which 

shall be based upon the duration necessary to realize cost savings sufficient to repay the loan; 

(3) be secured by a mortgage subordinate to the mortgage for 

the project that is insured under the National Housing Act; 

and 

(4) provide for a reduction in the remaining principal obligation under the loan based on the actual resulting cost savings 

realized from the capital improvements financed with the loan. 

(c) UNDERWRITING STANDARDS.—The Secretary shall establish 

underwriting requirements for loans made under the pilot program 

under this section, which shall— 

(1) require the cost savings projected to be realized from the 

capital improvements financed with the loan, during the term 

of the loan, to exceed the costs of repaying the loan; 

(2) allow the designer or contractor involved in designing 

capital improvements to be financed with a loan under the program to carry out such capital improvements; and 

(3) include such energy, audit, property, financial, ownership, and approval requirements as the Secretary considers appropriate. 

(d) TREATMENT OF SAVINGS.—The pilot program under this section shall provide that the project owner shall receive the full fiVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00056 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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nancial benefit from any reduction in the cost of utilities resulting 

from capital improvements financed with a loan made under the 

program. 

(e) COVERED ASSISTED HOUSING PROJECTS.—For purposes of this 

section, the term ‘‘covered assisted housing project’’ means a housing project that— 

(1) is financed by a loan or mortgage that is— 

(A) insured by the Secretary under— 

(i) subsection (d)(3) of section 221 of the National 

Housing Act (12 U.S.C. 1715l), and bears interest at a 

rate determined under the proviso of section 221(d)(5) 

of such Act; or 

(ii) subsection (d)(4) of such section 221. 

(B) insured or assisted under section 236 of the National 

Housing Act (12 U.S.C. 1715z–1); 

(2) at the time a loan under this section is made, is provided 

project-based rental assistance under section 8 of the United 

States Housing Act of 1937 (42 U.S.C. 1437f) for 50 percent or 

more of the dwelling units in the project; and 

(3) is not a housing project owned or held by the Secretary, 

or subject to a mortgage held by the Secretary. 

SEC. 295. MAKING IT GREEN. 

(a) PARTNERSHIPS WITH TREE-PLANTING ORGANIZATIONS.—The 

Secretary shall establish and provide incentives for developers of 

housing for which any HUD financial assistance, as determined by 

the Secretary, is provided for development, maintenance, operation, 

or other costs, to enter into agreements and partnerships with treeplanting organizations, nurseries, and landscapers to certify that 

trees, shrubs, grasses, and other plants are planted in the proper 

manner, are provided adequate maintenance, and survive for at 

least 3 years after planting or are replaced. The financial assistance determined by the Secretary as eligible under this section 

shall take into consideration such factors as cost effectiveness and 

affordability. 

(b) MAKING IT GREEN PLAN.—In the case of any new or substantially rehabilitated housing for which HUD financial assistance, as 

determined in accordance with subsection (a), is provided by the 

Secretary for the development, construction, maintenance, rehabilitation, improvement, operation, or costs of the housing, including 

financial assistance provided through the Community Development 

Block Grant program under title I of the Housing and Community 

Development Act of 1974 (42 U.S.C. 5301 et seq.), the Secretary 

shall require the development of a plan that provides for— 

(1) in the case of new construction and improvements, siting 

of such housing and improvements in a manner that provides 

for energy efficiency and conservation to the extent feasible, 

taking into consideration location and project type; 

(2) minimization of the effects of construction, rehabilitation, 

or other development on the condition of existing trees; 

(3) selection and installation of indigenous trees, shrubs, 

grasses, and other plants based upon applicable design guidelines and standards of the International Society for Arboriculture; 


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(4) post-planting care and maintenance of the landscaping 

relating to or affected by the housing in accordance with best 

management practices; and 

(5) establishment of a goal for minimum greenspace or tree 

canopy cover for the housing site for which such financial assistance is provided, including guidelines and timetables within which to achieve compliance with such minimum requirements. 

(c) PARTNERSHIPS.—In carrying out this section, the Secretary is 

encouraged to consult, as appropriate, with national organizations 

dedicated to providing housing assistance and related services to 

low-income families, such as the Alliance for Community Trees and 

its affiliates, the American Nursery and Landscape Association, the 

American Society of Landscape Architects, and the National Arbor 

Day Foundation. 

SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM. 

Title I of the Housing and Community Development Act of 1974 

(42 U.S.C. 5301 et seq.) is amended by adding at the end the following new section: 

‘‘SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM. 

‘‘(a) IN GENERAL.—To the extent amounts are made available for 

grants under this section, the Secretary shall make grants under 

this section to States, metropolitan cities and urban counties, Indian tribes, and insular areas to carry out energy efficiency improvements in new and existing single-family and multifamily 

housing. 

‘‘(b) ALLOCATIONS.— ‘‘(1) IN GENERAL.—Of the total amount made available for 

each fiscal year for grants under this section that remains 

after reserving amounts pursuant to paragraph (2), the Secretary shall allocate for insular areas, for metropolitan cities 

and urban counties, and for States, an amount that bears the 

same ratio to such total amount as the amount allocated for 

such fiscal year under section 106 for Indian tribes, for insular 

areas, for metropolitan cities and urban counties, and for 

States, respectively, bears to the total amount made available 

for such fiscal year for grants under section 106. 

‘‘(2) SET ASIDE FOR INDIAN TRIBES.—Of the total amount 

made available for each fiscal year for grants under this section, the Secretary shall allocate not less than 1 percent to Indian tribes. 

‘‘(c) GRANT AMOUNTS.— 

‘‘(1) ENTITLEMENT COMMUNITIES.—From the amounts allocated pursuant to subsection (b) for metropolitan cities and 

urban counties for each fiscal year, the Secretary shall make 

a grant for such fiscal year to each metropolitan city and urban 

county that complies with the requirement under subsection 

(d), in the amount that bears the same ratio such total amount 

so allocated as the amount of the grant for such fiscal year 

under section 106 for such metropolitan city or urban county 

bears to the aggregate amount of all grants for such fiscal year 

under section 106 for all metropolitan cities and urban counties. 


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‘‘(2) STATES.—From the amounts allocated pursuant to subsection (b) for States for each fiscal year, the Secretary shall 

make a grant for such fiscal year to each State that complies 

with the requirement under subsection (d), in the amount that 

bears the same ratio such total amount so allocated as the 

amount of the grant for such fiscal year under section 106 for 

such State bears to the aggregate amount of all grants for such 

fiscal year under section 106 for all States. Grant amounts received by a State shall be used only for eligible activities under 

subsection (e) carried out in nonentitlement areas of the State. 

‘‘(3) INDIAN TRIBES.—From the amounts allocated pursuant 

to subsection (b) for Indian tribes, the Secretary shall make 

grants to Indian tribes that comply with the requirement 

under subsection (d) on the basis of a competition conducted 

pursuant to specific criteria, as the Secretary shall establish by 

regulation, for the selection of Indian tribes to receive such 

amount. 

‘‘(4) INSULAR AREAS.—From the amounts allocated pursuant 

to subsection (b) for insular areas, the Secretary shall make a 

grant to each insular area that complies with the requirement 

under subsection (d) on the basis of the ratio of the population 

of the insular area to the aggregate population of all insular 

areas. In determining the distribution of amounts to insular 

areas, the Secretary may also include other statistical criteria 

as data become available from the Bureau of Census of the Department of Labor, but only if such criteria are set forth by 

regulation issued after notice and an opportunity for comment. 

‘‘(d) STATEMENT OF ACTIVITIES.— ‘‘(1) REQUIREMENT.—Before receipt the receipt in any fiscal 

year of a grant under subsection (c) by any grantee, the grantee shall have prepared a final statement of housing energy efficiency objectives and projected use of funds as the Secretary 

shall require and shall have provided the Secretary with such 

certifications regarding such objectives and use as the Secretary may require. In the case of metropolitan cities, urban 

counties, units of general local government, and insular areas 

receiving grants, the statement of projected use of funds shall 

consist of proposed housing energy efficiency activities. In the 

case of States receiving grants, the statement of projected use 

of funds shall consist of the method by which the States will 

distribute funds to units of general local government. 

‘‘(2) PUBLIC PARTICIPATION.—The Secretary may establish requirements to ensure the public availability of information regarding projected use of grant amounts and public participation in determining such projected use. 

‘‘(e) ELIGIBLE ACTIVITIES.— 

‘‘(1) REQUIREMENT.—Amounts from a grant under this section may be used only to carry out activities for single-family 

or multifamily housing that are designed to improve the energy efficiency of the housing so that the housing complies with 

the energy efficiency standards under section 284(a) of the 

Green Resources for Energy Efficient Neighborhoods Act of 

2009, including such activities to provide energy for such housing from renewable sources, such as wind, waves, solar, biomass, and geothermal sources. 


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‘‘(2) PREFERENCE FOR COMPLIANCE BEYOND BASIC REQUIRE- MENTS.—In selecting activities to be funded with amounts from 

a grant under this section, a grantee shall give more preference to activities based on the extent to which the activities 

will result in compliance by the housing with the enhanced energy efficiency and conservation standards, and the green 

building standards, under section 284(b) of such Act. 

‘‘(f) REPORTS.—Each grantee of a grant under this section for a 

fiscal year shall submit to the Secretary, at a time determined by 

the Secretary, a performance and evaluation report concerning the 

use of grant amounts, which shall contain an assessment by the 

grantee of the relationship of such use to the objectives identified 

in the grantees statement under subsection (d). 

‘‘(g) APPLICABILITY OF CDBG PROVISIONS.—Sections 109, 110, 

and 111 of the Housing and Community Development Act of 1974 

(42 U.S.C. 5309, 5310, 5311) shall apply to assistance received 

under this section to the same extent and in the same manner that 

such sections apply to assistance received under title I of such Act. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated for grants under this section $2,500,000,000 for fiscal year 2010 and such sums as may be necessary for each fiscal 

year thereafter.’’. 

SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES. 

Section 105(b) of the Cranston-Gonzalez National Affordable 

Housing Act (42 U.S.C. 12705(b)) is amended— 

(1) by striking ‘‘and’’ at the end of paragraph (19); 

(2) by striking the period at the end of paragraph (20) and 

inserting ‘‘; and’’; 

(3) and by inserting after paragraph (20) the following new 

paragraphs: 

‘‘(21) describe the jurisdiction’s strategies to encourage sustainable development for affordable housing, including singlefamily and multifamily housing, as measured by— 

‘‘(A) greater energy efficiency and use of renewable energy sources, including any strategies regarding compliance with the energy efficiency standards under section 

284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 2009 and with the enhanced energy efficiency and conservation standards, and the green building 

standards, under section 284(b) of such Act; 

‘‘(B) increased conservation, recycling, and reuse of resources; 

‘‘(C) more effective use of existing infrastructure; 

‘‘(D) use of building materials and methods that are 

healthier for residents of the housing, including use of 

building materials that are free of added known carcinogens that are classified as Group 1 Known Carcinogens by 

the International Agency for Research on Cancer; and 

‘‘(E) such other criteria as the Secretary determines, in 

consultation with the Secretary of Energy, the Secretary of 

Agriculture, and the Administrator of the Environmental 

Protection Agency, are in accordance with the purposes of 

this paragraph; and 


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‘‘(22) describe the jurisdiction’s efforts to coordinate its housing strategy with its transportation planning strategies to ensure to the extent practicable that residents of affordable housing have access to public transportation.’’. 

SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME 

COMMUNITY DEVELOPMENT CAPACITY. 

(a) IN GENERAL.—The Secretary may make grants to nonprofit 

organizations to use for any of the following purposes: 

(1) Training, educating, supporting, or advising an eligible 

community development organization or qualified youth service 

and conservation corps in improving energy efficiency, resource 

conservation and reuse, design strategies to maximize energy 

efficiency, installing or constructing renewable energy improvements (such as wind, wave, solar, biomass, and geothermal energy sources), and effective use of existing infrastructure in affordable housing and economic development activities in lowincome communities, taking into consideration energy efficiency standards under section 284(a) of this subtitle and with 

the enhanced energy efficiency and conservation standards, 

and the green building standards, under section 284(b) of this 

subtitle. 

(2) Providing loans, grants, or predevelopment assistance to 

eligible community development organizations or qualified 

youth service and conservation corps to carry out energy efficiency improvements that comply with the energy efficiency 

standards under section 284(a) of this subtitle, resource conservation and reuse, and effective use of existing infrastructure 

in affordable housing and economic development activities in 

low-income communities. In providing assistance under this 

paragraph, the Secretary shall give more preference to activities based on the extent to which the activities will result in 

compliance with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of this subtitle. 

(3) Such other purposes as the Secretary determines are in 

accordance with the purposes of this subsection. 

(b) APPLICATION REQUIREMENT.—To be eligible for a grant under 

this section, a nonprofit organization shall prepare and submit to 

the Secretary an application at such time, in such manner, and 

containing such information as the Secretary may require. 

(c) AWARD OF CONTRACTS.—Contracts for architectural or engineering services funded with amounts from grants made under this 

section shall be awarded in accordance with chapter 11 of title 40, 

United States Code (relating to selection of architects and engineers). 

(d) MATCHING REQUIREMENT.—A grant made under this section 

may not exceed the amount that the nonprofit organization receiving the grant certifies, to the Secretary, will be provided (in cash 

or in-kind) from nongovernmental sources to carry out the purposes 

for which the grant is made. 

(e) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) The term ‘‘nonprofit organization’’ has the meaning given 

such term in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704). 


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(2) The term ‘‘eligible community development organization’’ 

means— 

(A) a unit of general local government (as defined in section 104 of the Cranston-Gonzalez National Affordable 

Housing Act (42 U.S.C. 12704)); 

(B) a community housing development organization (as 

defined in section 104 of the Cranston-Gonzalez National 

Affordable Housing Act (42 U.S.C. 12704)); 

(C) an Indian tribe or tribally designated housing entity 

(as such terms are defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 

1996 (25 U.S.C. 4103)); or 

(D) a public housing agency, as such term is defined in 

section 3(b) of the United States Housing Act of 1937 (42 

U.S.C. 1437(b)). 

(3) The term ‘‘low-income community’’ means a census tract 

in which 50 percent or more of the households have an income 

which is less than 80 percent of the greater of— 

(A) the median gross income for such year for the area 

in which such census tract is located; or 

(B) the median gross income for such year for the State 

in which such census tract is located. 

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

be appropriated to the Secretary to carry out this section 

$10,000,000 for each of fiscal years 2010 through 2014. 

SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT. 

(a) MANDATORY COMPONENT.—Section 24(e) of the United States 

Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding at 

the end the following new paragraph: 

‘‘(4) GREEN DEVELOPMENTS REQUIREMENT.— ‘‘(A) REQUIREMENT.—The Secretary may not make a 

grant under this section to an applicant unless the proposed revitalization plan of the applicant to be carried out 

with such grant amounts meets the following requirements: 

‘‘(i) GREEN COMMUNITIES CRITERIA CHECKLIST.—All 

residential construction under the proposed plan complies with the national Green Communities criteria 

checklist for residential construction that provides criteria for the design, development, and operation of affordable housing, as such checklist is in effect for purposes of this paragraph pursuant to subparagraph (D) 

at the date of the application for the grant, or any substantially equivalent standard or standards as determined by the Secretary, as follows: 

‘‘(I) The proposed plan shall comply with all 

items of the national Green Communities criteria 

checklist for residential construction that are 

identified as mandatory. 

‘‘(II) The proposed plan shall comply with such 

other nonmandatory items of such national Green 

Communities criteria checklist so as to result in a 

cumulative number of points attributable to such 

nonmandatory items under such checklist of not 

less than— 


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‘‘(aa) 25 points, in the case of any proposed 

plan (or portion thereof) consisting of new 

construction; and 

‘‘(bb) 20 points, in the case of any proposed 

plan (or portion thereof) consisting of rehabilitation. 

‘‘(ii) GREEN BUILDINGS CERTIFICATION SYSTEM.—All 

nonresidential construction under the proposed plan 

complies with all minimum required levels of the 

green building rating systems and levels identified by 

the Secretary pursuant to subparagraph (C), as such 

systems and levels are in effect for purposes of this 

paragraph pursuant to subparagraph (D) at the time 

of the application for the grant. 

‘‘(B) VERIFICATION.— ‘‘(i) IN GENERAL.—The Secretary shall verify, or provide for verification, sufficient to ensure that each proposed revitalization plan carried out with amounts 

from a grant under this section complies with the requirements under subparagraph (A) and that the revitalization plan is carried out in accordance with such 

requirements and plan. 

‘‘(ii) TIMING.—In providing for such verification, the 

Secretary shall establish procedures to ensure such 

compliance with respect to each grantee, and shall report to the Congress with respect to the compliance of 

each grantee, at each of the following times: 

‘‘(I) Not later than 6 months after execution of 

the grant agreement under this section for the 

grantee. 

‘‘(II) Upon completion of the revitalization plan 

of the grantee. 

‘‘(C) IDENTIFICATION OF GREEN BUILDINGS RATING SYS- TEMS AND LEVELS.— 

‘‘(i) IN GENERAL.—For purposes of this paragraph, 

the Secretary shall identify rating systems and levels 

for green buildings that the Secretary determines to 

be the most likely to encourage a comprehensive and 

environmentally sound approach to ratings and standards for green buildings. The identification of the ratings systems and levels shall be based on the criteria 

specified in clause (ii), shall identify the highest levels 

the Secretary determines are appropriate above the 

minimum levels required under the systems selected. 

Within 90 days of the completion of each study required by clause (iii), the Secretary shall review and 

update the rating systems and levels, or identify alternative systems and levels for purposes of this paragraph, taking into account the conclusions of such 

study. 

‘‘(ii) CRITERIA.—In identifying the green rating systems and levels, the Secretary shall take into consideration— 

‘‘(I) the ability and availability of assessors and 

auditors to independently verify the criteria and 


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measurement of metrics at the scale necessary to 

implement this paragraph; 

‘‘(II) the ability of the applicable ratings system 

organizations to collect and reflect public comment; 

‘‘(III) the ability of the standards to be developed and revised through a consensus-based process; 

‘‘(IV) An evaluation of the robustness of the criteria for a high-performance green building, which 

shall give credit for promoting— 

‘‘(aa) efficient and sustainable use of water, 

energy, and other natural resources; 

‘‘(bb) use of renewable energy sources; 

‘‘(cc) improved indoor and outdoor environmental quality through enhanced indoor and 

outdoor air quality, thermal comfort, acoustics, outdoor noise pollution, day lighting, pollutant source control, sustainable landscaping, 

and use of building system controls and lowor no-emission materials, including preference 

for materials with no added carcinogens that 

are classified as Group 1 Known Carcinogens 

by the International Agency for Research on 

Cancer; and 

‘‘(dd) such other criteria as the Secretary 

determines to be appropriate; and 

‘‘(V) national recognition within the building industry. 

‘‘(iii) 5-YEAR EVALUATION.—At least once every 5 

years, the Secretary shall conduct a study to evaluate 

and compare available third-party green building rating systems and levels, taking into account the criteria 

listed in clause (ii). 

‘‘(D) APPLICABILITY AND UPDATING OF STANDARDS.— 

‘‘(i) APPLICABILITY.—Except as provided in clause (ii) 

of this subparagraph, the national Green Communities 

criteria checklist and green building rating systems 

and levels referred to in clauses (i) and (ii) of subparagraph (A) that are in effect for purposes of this paragraph are such checklist systems, and levels as in existence upon the date of the enactment of the Green 

Resources for Energy Efficient Neighborhoods Act of 

2009. 

‘‘(ii) UPDATING.—The Secretary may, by regulation, 

adopt and apply, for purposes of this paragraph, future amendments and supplements to, and editions of, 

the national Green Communities criteria checklist, 

any standard or standards that the Secretary has determined to be substantially equivalent to such checklist, and the green building ratings systems and levels 

identified by the Secretary pursuant to subparagraph 

(C).’’. 


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(b) SELECTION CRITERIA; GRADED COMPONENT.—Section 24(e)(2) 

of the United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) 

is amended— 

(1) in subparagraph (K), by striking ‘‘and’’ at the end; 

(2) by redesignating subparagraph (L) as subparagraph (M); 

and 

(3) by inserting after subparagraph (K) the following new 

subparagraph: 

‘‘(L) the extent to which the proposed revitalization 

plan— 

‘‘(i) in the case of residential construction, complies 

with the nonmandatory items of the national Green 

Communities criteria checklist identified in paragraph 

(4)(A)(i), or any substantially equivalent standard or 

standards as determined by the Secretary, but only to 

the extent such compliance exceeds the compliance 

necessary to accumulate the number of points required 

under such paragraph; and 

‘‘(ii) in the case of nonresidential construction, complies with the components of the green building rating 

systems and levels identified by the Secretary pursuant to paragraph (4)(C), but only to the extent such 

compliance exceeds the minimum level required under 

such systems and levels; and’’. 

SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS 

IN APPRAISALS. 

(a) APPRAISALS IN CONNECTION WITH FEDERALLY RELATED

TRANSACTIONS.— (1) REQUIREMENT.—Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 

U.S.C. 3339) is amended— 

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

(B) by redesignating paragraph (2) as paragraph (3); and 

(C) by inserting after paragraph (1) the following new 

paragraph: 

‘‘(2) that such appraisals be performed in accordance with 

appraisal standards that require, in determining the value of 

a property, consideration of any renewable energy sources for, 

or energy efficiency or energy-conserving improvements or features of, the property; and’’. 

(2) REVISION OF APPRAISAL STANDARDS.—Each Federal financial institutions regulatory agency shall, not later than 6 

months after the date of the enactment of this Act, revise its 

standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of the agency to comply with the requirement under the 

amendments made by paragraph (1) of this subsection. 

(b) APPRAISER CERTIFICATION AND LICENSING REQUIREMENTS.— 

Section 1116 of the Financial Institutions Reform, Recovery, and 

Enforcement Act of 1989 (12 U.S.C. 3345) is amended— 

(1) in subsection (a), by inserting before the period at the end 

the following: ‘‘, and meets the requirements established pursuant to subsection (f) for qualifications regarding consideration 

of any renewable energy sources for, or energy efficiency or energy-conserving improvements or features of, the property’’; 


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(2) in subsection (c), by inserting before the period at the end 

the following: ‘‘, which shall include compliance with the requirements established pursuant to subsection (f) regarding 

consideration of any renewable energy sources for, or energy 

efficiency or energy-conserving improvements or features of, 

the property’’; 

(3) in subsection (e), by striking ‘‘The’’ and inserting ‘‘Except 

as provided in subsection (f), the’’; and 

(4) by adding at the end the following new subsection: 

‘‘(f) REQUIREMENTS FOR APPRAISERS REGARDING ENERGY EFFICIENCY FEATURES.—The Appraisal Subcommittee shall establish 

requirements for State certification of State certified real estate appraisers and for State licensing of State licensed appraisers, to ensure that appraisers consider and are qualified to consider, in determining the value of a property, any renewable energy sources 

for, or energy efficiency or energy-conserving improvements or features of, the property.’’. 

(c) GUIDELINES FOR APPRAISING PHOTOVOLTAIC MEASURES AND

TRAINING OF APPRAISERS.—Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 

3351) is amended by adding at the end the following new subsection: 

‘‘(g) GUIDELINES FOR APPRAISING PHOTOVOLTAIC MEASURES AND

TRAINING OF APPRAISERS.—The Appraisal Subcommittee shall, in 

consultation with the Secretary of Housing and Urban Development, the Federal National Mortgage Association, and the Federal 

Home Loan Mortgage Corporation, establish specific guidelines 

for— 

‘‘(1) appraising off- and on-grid photovoltaic measures for 

compliance with the appraisal standards prescribed pursuant 

to section 1110(2); 

‘‘(2) requirements under section 1116(f) for certification of 

State certified real estate appraisers and for State licensing of 

State licensed appraisers, to ensure that appraisers consider, 

and are qualified to consider, such photovoltaic measures in 

determining the value of a property; and 

‘‘(3) training of appraisers to meet the requirements established pursuant to paragraph (2) of this subsection.’’. 

SEC. 299B. HOUSING ASSISTANCE COUNCIL. 

The Secretary shall require the Housing Assistance Council— 

(1) to encourage each organization that receives assistance 

from the Council with any amounts made available from the 

Secretary to provide that any structures and buildings developed or assisted under projects, programs, and activities funded with such amounts complies with the energy efficiency 

standards under section 284(a) of this subtitle; and 

(2) to establish incentives to encourage each such organization to provide that any such structures and buildings comply 

with the energy efficiency and conservation standards, and the 

green building standards, under section 284(b) of such Act. 

SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE. 

The Secretary shall— 


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(1) require each tribe, agency, organization, corporation, and 

other entity that receives any assistance from the Office of 

Rural Housing and Economic Development of the Department 

of Housing and Urban Development to provide that any structures and buildings developed or assisted under activities funded with such amounts complies with the energy efficiency 

standards under section 284(a) of this subtitle; and 

(2) establish incentives to encourage each such tribe, agency, 

organization, corporation, and other entity to provide that any 

such structures and buildings comply with the enhanced energy efficiency and conservation standards, and the green 

building standards, under section 284(b) of such Act. 

SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE ENERGY SOURCES ACTIVITIES. 

(a) ESTABLISHMENT OF FUND.—There is established in the Treasury of the United States a fund, to be known as the ‘‘Alternative 

Energy Sources State Loan Fund’’. 

(b) EXPENDITURES.— (1) IN GENERAL.—Subject to paragraph (2), on request by the 

Secretary, the Secretary of the Treasury shall transfer from 

the Fund to the Secretary such amounts as the Secretary determines are necessary to provide loans under subsection (c)(1). 

(2) ADMINISTRATIVE EXPENSES.—Of the amounts in the Fund, 

not more than 5 percent shall be available for each fiscal year 

to pay the administrative expenses of the Department of Housing and Urban Development to carry out this section. 

(c) LOANS TO STATES AND INDIAN TRIBES.— 

(1) IN GENERAL.—The Secretary shall use amounts in the 

Fund to provide loans to States and Indian tribes to provide 

incentives to owners of single-family and multifamily housing, 

commercial properties, and public buildings to provide— 

(A) renewable energy sources for such structures, such 

as wind, wave, solar, biomass, or geothermal energy 

sources, including incentives to companies and business to 

change their source of energy to such renewable energy 

sources and for changing the sources of energy for public 

buildings to such renewable energy sources; 

(B) energy efficiency and energy conserving improvements and features for such structures; or 

(C) infrastructure related to the delivery of electricity 

and hot water for structures lacking such amenities. 

(2) ELIGIBILITY.—To be eligible to receive a loan under this 

subsection, a State or Indian tribe, directly or through an appropriate State or tribal agency, shall submit to the Secretary 

an application at such time, in such manner, and containing 

such information as the Secretary may require. 

(3) CRITERIA FOR APPROVAL.—The Secretary may approve an 

application of a State or Indian tribe under paragraph (2) only 

if the Secretary determines that the State or tribe will use the 

funds from the loan under this subsection to carry out a program to provide incentives described in paragraph (1) that— 

(A) requires that any such renewable energy sources, 

and energy efficiency and energy conserving improvements 

and features, developed pursuant to assistance under the 

program result in compliance of the structure so improved 


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with energy efficiency requirements determined by the 

Secretary; and 

(B) includes such compliance and audit requirements as 

the Secretary determines are necessary to ensure that the 

program is operated in a sound and effective manner. 

(4) PREFERENCE.—In making loans during each fiscal year, 

the Secretary shall give preference to States and Indian tribes 

that have not previously received a loan under this subsection. 

(5) MAXIMUM AMOUNT.—The aggregate outstanding principal 

amount from loans under this subsection to any single State or 

Indian tribe may not exceed $500,000,000. 

(6) LOAN TERMS.—Each loan under this subsection shall have 

a term to maturity of not more than 10 years and shall bear 

interest at annual rate, determined by the Secretary, that shall 

not exceed interest rate charged by the Federal Reserve Bank 

of New York to commercial banks and other depository institutions for very short-term loans under the primary credit program, as most recently published in the Federal Reserve Statistical Release on selected interest rates (daily or weekly), and 

commonly referred to as the H.15 release, preceding the date 

of a determination for purposes of applying this paragraph. 

(7) LOAN REPAYMENT.—The Secretary shall require full repayment of each loan made under this section. 

(d) INVESTMENT OF AMOUNTS.— (1) IN GENERAL.—The Secretary of the Treasury shall invest 

such amounts in the Fund that are not, in the judgment of the 

Secretary of the Treasury, required to meet needs for current 

withdrawals. 

(2) OBLIGATIONS OF UNITED STATES.—Investments may be 

made only in interest-bearing obligations of the United States. 

(e) REPORTS.— (1) REPORTS TO SECRETARY.—For each year during the term 

of a loan made under subsection (c), the State or Indian tribe 

that received the loan shall submit to the Secretary a report 

describing the State or tribal alternative energy sources program for which the loan was made and the activities conducted 

under the program using the loan funds during that year. 

(2) REPORT TO CONGRESS.—Not later than September 30 of 

each year that loans made under subsection (c) are outstanding, the Secretary shall submit a report to the Congress 

describing the total amount of such loans provided under subsection (c) to each eligible State and Indian tribe during the 

fiscal year ending on such date, and an evaluation on effectiveness of the Fund. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Fund $5,000,000,000. 

(g) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 

given such term in section 4 of the Native American Housing 

Assistance and Self-Determination Act of 1996 (25 U.S.C. 

4103). 

(2) STATE.—The term ‘‘State’’ means each of the several 

States, the Commonwealth of Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana Islands, 


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Guam, the Virgin Islands, American Samoa, the Trust Territories of the Pacific, or any other possession of the United 

States. 

SEC. 299E. GREEN BANKING CENTERS. 

(a) INSURED DEPOSITORY INSTITUTIONS.—Section 8 of the Federal 

Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at 

the end the following new subsection: 

‘‘(x) ‘GREEN BANKING’ CENTERS.— ‘‘(1) IN GENERAL.—The Federal banking agencies shall prescribe guidelines encouraging the establishment and maintenance of ‘green banking’ centers by insured depository institutions to provide any consumer who seeks information on obtaining a mortgage, home improvement loan, home equity loan, 

or renewable energy lease with additional information on— 

‘‘(A) obtaining an home energy rating or audit for the 

residence for which such mortgage or loan is sought; 

‘‘(B) obtaining financing for cost-effective energy-saving 

improvements to such property; and 

‘‘(C) obtaining beneficial terms for any mortgage or loan, 

or qualifying for a larger mortgage or loan, secured by a 

residence which meets or will meet energy efficiency 

standards. 

‘‘(2) INFORMATION AND REFERRALS.—The information made 

available to consumers under paragraph (1) may include— 

‘‘(A) information on obtaining a home energy rating and 

contact information on qualified energy raters in the area 

of the residence; 

‘‘(B) information on the secondary market guidelines 

that permit lenders to provide more favorable terms by allowing lenders to increase the ratio on debt-to-income requirements or to use the projected utility savings as a compensating factor; 

‘‘(C) information including eligibility information about, 

and contact information for, any conservation or renewable 

energy programs, grants, or loans offered by the Secretary 

of Housing and Urban Development, including the Energy 

Efficient Mortgage Program; 

‘‘(D) information including eligibility information about, 

and contact information for, any conservation or renewable 

energy programs, grants, or loans offered for qualified 

military personal, reservists, and veterans by the Secretary of Veterans Affairs; 

‘‘(E) information about, and contact information for, the 

Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance 

program; 

‘‘(F) information about, and contact information for, the 

Energy Star Program of the Environmental Protection 

Agency; 

‘‘(G) information from, and contact information for, the 

Federal Citizen Information Center of the General Services 

Administration on energy-efficient mortgages and loans, 

home energy rating systems, and the availability of energy-efficient mortgage information from a variety of Federal agencies; and 


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‘‘(H) such other information as the agencies or the insured depository institution may determine to be appropriate or useful.’’. 

(b) INSURED CREDIT UNIONS.—Section 206 of the Federal Credit 

Union Act (12 U.S.C. 1786) is amended by adding at the end the 

following new subsection: 

‘‘(x) ‘GREEN BANKING’ CENTERS.— 

‘‘(1) IN GENERAL.—The Board shall prescribe guidelines encouraging the establishment and maintenance of ‘green banking’ centers by insured credit unions to provide any member 

who seeks information on obtaining a mortgage, home improvement loan, home equity loan, or renewable energy lease with 

additional information on— 

‘‘(A) obtaining an home energy rating or audit for the 

residence for which such mortgage or loan is sought; 

‘‘(B) obtaining financing for cost-effective energy-saving 

improvements to such property; and 

‘‘(C) obtaining beneficial terms for any mortgage or loan, 

or qualifying for a larger mortgage or loan, secured by a 

residence which meets or will meet energy efficiency 

standards. 

‘‘(2) INFORMATION AND REFERRALS.—The information made 

available to members under paragraph (1) may include— 

‘‘(A) information on obtaining a home energy rating and 

contact information on qualified energy raters in the area 

of the residence; 

‘‘(B) information on the secondary market guidelines 

that permit lenders to provide more favorable terms by allowing lenders to increase the ratio on debt-to-income requirements or to use the projected utility savings as a compensating factor; 

‘‘(C) information including eligibility information about, 

and contact information for, any conservation or renewable 

energy programs, grants, or loans offered by the Secretary 

of Housing and Urban Development, including the Energy 

Efficient Mortgage Program; 

‘‘(D) information including eligibility information about, 

and contact information for, any conservation or renewable 

energy programs, grants, or loans offered for qualified 

military personal, reservists, and veterans by the Secretary of Veterans Affairs; 

‘‘(E) information about, and contact information for, the 

Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance 

program; 

‘‘(F) information from, and contact information for, the 

Federal Citizen Information Center of the General Services 

Administration on energy-efficient mortgages and loans, 

home energy rating systems, and the availability of energy-efficient mortgage information from a variety of Federal agencies; and 

‘‘(G) such other information as the Board or the insured 

credit union may determine to be appropriate or useful.’’. 


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SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES. 

(a) STUDY.—The Comptroller General of the United States shall 

periodically, as necessary to comply with subsection (b), examine 

the impact of this subtitle and the amendments made by this subtitle on the availability of affordable mortgages in various areas 

throughout the United States, including cities having older infrastructure and limited space for the development of new housing. 

(b) TRIENNIAL REPORTS.—The Comptroller General shall submit 

a report once every 3 years to the Committee on Financial Services 

of the House of Representatives and the Committee on Banking, 

Housing, and Urban Affairs of the Senate that shall include— 

(1) a detailed statement of the most recent findings pursuant 

to subsection (a); and 

(2) if the Comptroller General finds that this subtitle or the 

amendments made by this subtitle have directly or indirectly 

resulted in consequences that limit the availability or affordability of mortgages in any area or areas within the United 

States, including any city having older infrastructure and limited space for the development of new housing, any recommendations for any additional actions at the Federal, State, 

or local levels that the Comptroller General considers necessary or appropriate to mitigate such effects. 

The first report under this subsection shall be submitted not later 

than the expiration of the 3-year period beginning on the date of 

the enactment of this Act. 

SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT. 

(a) COLLECTION OF INFORMATION BY HUD.—The Secretary of 

Housing and Urban Development shall obtain from each public 

housing agency, by such time as may be necessary to comply with 

the reporting requirement under subsection (b), information regarding the energy costs for public housing administered or operated by the agency. For each public housing agency, such information shall include the monthly energy costs associated with each 

separate building and development of the agency, for the most recently completed 12-month period for which such information is 

available, and such other information as the Secretary determines 

is appropriate in determining which public housing buildings and 

developments are most in need of repairs and improvements to reduce energy needs and costs and become more energy efficient. 

(b) REPORT.—Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall submit a report to 

the Congress setting forth the information collected pursuant to 

subsection (a). 

SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RENEWABLE ENERGY LEASE INSTRUMENTS. 

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

(1) to encourage residential use of renewable energy systems 

by minimizing up-front costs and providing immediate utility 

cost savings to consumers through leasing of such systems to 

homeowners; 

(2) to reduce carbon emissions and the use of nonrenewable 

resources; 


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(3) to encourage energy-efficient residential construction and 

rehabilitation; 

(4) to encourage the use of renewable resources by homeowners; 

(5) to minimize the impact of development on the environment; 

(6) to reduce consumer utility costs; and 

(7) to encourage private investment in the green economy. 

(b) RESIDUAL VALUE OF RENEWABLE ENERGY ASSET.—The Secretary of Housing and Urban Development shall establish a means 

of determining the residual value of a renewable energy asset such 

that a secondary market for residential renewable energy lease instruments may be facilitated. Such means may include, without 

limitation, the calculation of residual value based on the net 

present value of projected future energy production of the renewable energy asset. 

SEC. 299I. GREEN GUARANTEES. 

(a) AUTHORITY TO GUARANTEE ‘‘GREEN PORTION’’ OF ELIGIBLE

MORTGAGES.— 

(1) IN GENERAL.—The Secretary of Housing and Urban Development may make commitments to guarantee under this 

section and may guarantee, the repayment of the portions of 

the principal obligations of eligible mortgages that are used to 

finance eligible sustainable building elements for the housing 

that is subject to the mortgage. 

(2) AMOUNT OF GUARANTEE.—A guarantee under this section 

by the Secretary in connection with an eligible mortgage shall 

not exceed a percentage of the green portion (as such term is 

defined in subsection (g)) of the mortgage, as shall be established by the Secretary and may be established on a regional 

basis as the Secretary determines appropriate. 

(b) ELIGIBLE MORTGAGES.—To be considered an eligible mortgage 

for purposes of this section, a mortgage shall comply with all of the 

following requirements: 

(1) ACQUISITION OR CONSTRUCTION OF HOUSING.—The mortgage shall be made for the acquisition or construction of singleor multifamily housing and repayment of the mortgage shall be 

secured by an interest in such housing. 

(2) FINANCING OF ELIGIBLE SUSTAINABLE BUILDING ELEMENTS

THROUGH GREEN PORTION OF MORTGAGE.—A portion of the 

principal obligation of the mortgage, which meets the requirements under subsection (c), shall be used only for financing the 

provision of eligible sustainable building elements for the housing for which the mortgage was made. 

(3) MAXIMUM MORTGAGE AMOUNT.—The principal obligation 

of the mortgage (including the eligible portion of such mortgage, and such initial service charges, appraisal, inspection, 

and other fees as the Secretary shall approve) may not exceed 

the following amounts: 

(A) SINGLE-FAMILY HOUSING.—Such dollar amounts for 

single-family housing as the Secretary shall establish, 

which may be established on the basis of the number of 

dwelling units in the housing, as the Secretary considers 

appropriate. 


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(B) MULTIFAMILY HOUSING.—Such dollar amounts for 

multifamily housing as the Secretary shall establish, 

which may be established on the basis of the number of 

dwelling units in the housing and the number of bedrooms 

in such dwelling units, as the Secretary considers appropriate. 

(4) REPAYMENT.—The mortgage meets such requirements as 

the Secretary shall establish to ensure that there is a reasonable prospect of repayment of the principal and interest on the 

obligation by the mortgagor. 

(5) MORTGAGE TERMS.—The mortgage shall meet such requirements with respect to loan-to-value ratio, mortgagor credit scores, debt-to-income ratio, and other underwriting standards, term to maturity, interest rates and amortization, including amortization of the green portion of the mortgage, and 

other mortgage terms as the Secretary shall establish. 

(c) LIMITATIONS ON GREEN PORTION OF MORTGAGE.—The requirements under this subsection with respect to the green portion of an 

eligible mortgage are as follows: 

(1) PERCENTAGE LIMITATION.—Such portion shall not exceed, 

in the case of single-family or multifamily housing, 10 percent 

of the total principal obligation of the mortgage. 

(2) DOLLAR AMOUNT LIMITATION.—Such portion shall not exceed— 

(A) in the case of single-family housing, such maximum 

dollar amount limitation as the Secretary shall establish, 

which may be established on the basis of the number of 

dwelling units in the housing, as the Secretary considers 

appropriate; and 

(B) in the case of multifamily housing, such maximum 

dollar amount limitation as the Secretary shall establish, 

which limitation may be established on the basis of the 

number of dwelling units in the housing and the number 

of bedrooms in such dwelling units, as the Secretary considers appropriate. 

(3) COST-EFFECTIVENESS LIMITATION.—Such portion shall not 

exceed the total present value of the savings (as determined in 

accordance with subsection (d)) attributable to the incorporation of the eligible sustainable building elements to be financed 

with the green portion of the mortgage that are to be realized 

over the useful life of such elements. 

(d) ELIGIBLE SUSTAINABLE BUILDING ELEMENTS.—The Secretary 

may not guarantee any eligible mortgage under this section unless 

the mortgagor has demonstrated, in accordance with such requirements as the Secretary shall establish, the amount of savings attributable to incorporation of the sustainable building elements to 

be financed with the green portion of the mortgage, as measured 

by the National Green Building Standard for all residential construction developed by the National Association of Home Builders 

and the U.S. Green Building Council, and approved by the American National Standards Institute, as updated and in effect at the 

time of such demonstration. 

(e) GUARANTEE FEE.— 

(1) ASSESSMENT AND COLLECTION.—The Secretary shall assess and collect fees for guarantees under this section in 


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amounts that the Secretary determines are sufficient to cover 

the costs (as such term is defined in section 502 of the Federal 

Credit Reform Act of 1990 (2 U.S.C. 661a)) of such guarantees. 

(2) AVAILABILITY.—Fees collected under this subsection shall 

be deposited by the Secretary in the Treasury of the United 

States and shall remain available until expended, subject to 

such other conditions as are contained in annual appropriations Acts. 

(f) PAYMENT OF GUARANTEE.— (1) DEFAULT.— (A) RIGHT TO PAYMENT.—If a mortgagor under a mortgage guaranteed under this section defaults (as defined in 

regulations issued by the Secretary and specified in the 

guarantee contract) on the obligation under the mortgage— 

(i) the holder of the guarantee shall have the right 

to demand payment of the unpaid amount of the guaranteed portion of the mortgage, to the extent provided 

under subsection (a)(2), from the Secretary; and 

(ii) within such period as may be specified in the 

guarantee or related agreements, the Secretary shall 

pay to the holder of the guarantee, to the extent provided under subsection (a)(2), the unpaid interest on, 

and unpaid principal of the portion of guaranteed portion of the mortgage with respect to which the borrower has defaulted, unless the Secretary finds that 

there was no default by the borrower in the payment 

of interest or principal or that the default has been 

remedied. 

(B) FORBEARANCE.—Nothing in this paragraph precludes 

any forbearance by the holder of an eligible mortgage for 

the benefit of the mortgagor which may be agreed upon by 

the parties to the mortgage and approved by the Secretary. 

(2) SUBROGATION.— 

(A) IN GENERAL.—If the Secretary makes a payment 

under paragraph (1), the Secretary shall be subrogated to 

the rights of the recipient of the payment as specified in 

the guarantee or related agreements including, if appropriate, the authority (notwithstanding any other provision 

of law)— 

(i) to complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to 

such guarantee or related agreements; or 

(ii) to permit the mortgagor, pursuant to an agreement with the Secretary, to continue to occupy the 

property subject to the mortgage, if the Secretary determines such occupancy to be appropriate. 

(B) SUPERIORITY OF RIGHTS.—The rights of the Secretary, with respect to any property acquired pursuant to 

a guarantee or related agreements, shall be superior to the 

rights of any other person with respect to the property. 

(C) TERMS AND CONDITIONS.—A guarantee agreement 

shall include such detailed terms and conditions as the 

Secretary determines appropriate to protect the interests 

of the United States in the case of default. 


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

United States is pledged to the payment of all guarantees 

issued under this section with respect to principal and interest. 

(g) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) ELIGIBLE MORTGAGE.—The term ‘‘eligible mortgage’’ 

means a mortgage that meets the requirements under subsection (b). 

(2) GREEN PORTION.—The term ‘‘green portion’’ means, with 

respect to an eligible mortgage, the portion of the mortgage 

principal referred to in subsection (b)(2) that is attributable, as 

determined in accordance with regulations issued by the Secretary, to the increased costs incurred in financing provision of 

sustainable building elements for the housing for which the 

mortgage was made, as compared to the costs that would have 

been incurred in financing the provision of other building elements for the housing for the same purposes that are commonly or conventionally used but are not sustainable building 

elements. 

(3) GUARANTEED PORTION.—The term ‘‘guaranteed portion’’ 

means, with respect to an eligible mortgage guaranteed under 

this section, the green portion of the mortgage that is so guaranteed. 

(4) MORTGAGE.—The term ‘‘mortgage’’ has the meaning given 

such term in section 201 of the National Housing Act (12 

U.S.C. 1707). 

(5) MULTIFAMILY HOUSING.—The term ‘‘multifamily housing’’ 

means a residential property consisting of five or more dwelling units. 

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

of Housing and Urban Development. 

(7) SINGLE-FAMILY HOUSING.—The term ‘‘single-family housing’’ means a residential property consisting of one to four 

dwelling units. 

(8) SUSTAINABLE BUILDING ELEMENT.—The term ‘‘sustainable 

building element’’ means such building elements, as the Secretary shall define, that have energy efficiency or environmental sustainability qualities that are superior to such qualities for other building elements for the same purposes that are 

commonly or conventionally used. 

(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated for costs (as such term is defined in section 502 of 

the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of guarantees under this section $500,000,000 for each of fiscal years 2010 

through 2014. 

(i) REGULATIONS.—The Secretary shall issue any regulations necessary to carry out this section. 

Page 566, line 22, insert ‘‘offset’’ before ‘‘credit’’. 

Page 567, line 8, strike ‘‘allowances or offset credits’’ and insert 

‘‘allowances, offset credits, or term offset credits’’. 

Page 567, line 11, strike ‘‘allowances or offset credits’’ and insert 

‘‘allowances, offset credits, or term offset credits’’. 

Page 577, line 16, insert ‘‘offset’’ before ‘‘credits’’. 

Page 578, line 3, insert ‘‘offset’’ before ‘‘credits’’. 


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Page 586, after line 13, insert the following new paragraph: 

‘‘(2) TERM OFFSET CREDITS.— ‘‘(A) IN GENERAL.—Covered entities may, in accordance 

with this paragraph, use non-expired term offset credits 

instead of domestic offset credits for purposes of temporarily demonstrating compliance with this section. 

‘‘(B) AMOUNT.—The combined quantity of term offset 

credits and domestic offset credits used by a covered entity 

to demonstrate compliance for its emissions or attributable 

greenhouse gas emissions in any given year shall not exceed the quantity of domestic offset credits that a covered 

entity is entitled to use for that year to demonstrate compliance in accordance with paragraph (1). 

‘‘(C) EXPIRATION.—A term offset credit shall expire in 

the year after its term ends. The term of a term offset 

credit shall be calculated by adding to the year of issuance 

the number of years equal to the length of the crediting 

period for the practice or project for which the term offset 

credit was issued, but in no case shall be later than the 

date 5 years from the date of issuance. 

‘‘(D) DEMONSTRATING COMPLIANCE UPON EXPIRATION OF

TERM OFFSET CREDIT.—With respect to the emissions for 

which a covered entity is using term offset credits to demonstrate compliance temporarily with this section, the 

owner or operator of a covered entity shall not be considered to be in compliance with the prohibition in subsection 

(a) unless, as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of the 

calendar year in which a term offset credit expires, the 

owner or operator holds— 

‘‘(i) for purposes of finally demonstrating compliance, 

an allowance or a domestic offset credit; or 

‘‘(ii) for purposes of temporarily demonstrating compliance, a non-expired term offset credit. 

Domestic offset credits used for purposes of finally demonstrating compliance under this subparagraph shall not 

be subject to the percentage limitations in subparagraph 

(B). 

‘‘(E) FINANCIAL ASSURANCE.—A covered entity may not 

use a term offset credit to demonstrate compliance temporarily unless it simultaneously provides to the Administrator financial assurance that, at the end of the term offset credit’s crediting term, the covered entity will have sufficient resources to obtain the quantity of allowances or 

credits necessary to demonstrate final compliance. The Administrator shall issue regulations establishing requirements for such financial assurance, which shall take into 

account the increased risk associated with longer crediting 

terms. These regulations shall take into account the total 

number of tons of carbon dioxide equivalent of greenhouse 

gas emissions for which a covered entity is demonstrating 

compliance temporarily, and may set a limit on this 

amount. In the event that a covered entity that used term 

offset credits to demonstrate compliance temporarily fails 

to meet the requirements of subparagraph (D) at the end 


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of the term offset credits’ crediting term, if the financial 

assurance mechanism fails to provide to the Administrator 

the number of allowances or offset credits for which the 

crediting term has expired, then the Administrator shall 

retire that number of allowances with the vintage year 2 

years after the year in which the term offset credit expires 

in the same amount. Allowances so retired shall not be 

counted as emission allowances established for that calendar year under section 721(a). 

Page 586, lines 14 and 19, redesignate paragraphs (2) and (3) as 

paragraphs (3) and (4), respectively. 

Page 590, line 12, insert ‘‘In the event that a covered entity fails 

to demonstrates compliance at the expiration of a term offset credit’s crediting term as required by section 722(d)(2)(D), the year of 

the violation shall be the year in which the term offset credit expires.’’ after ‘‘a separate violation.’’. 

Page 590, line 16, insert ‘‘, (d)(2),’’ after ‘‘section 722(a)’’. 

Page 591, line 25, insert ‘‘, (d)(2),’’ after ‘‘section 722(a)’’. 

Page 593, line 2, strike ‘‘allowance or offset credit’’ and insert ‘‘allowance, offset credit, or term offset credit’’. 

Page 593, lines 10 and 11, strike ‘‘allowances and offset credits’’ 

and insert ‘‘allowances, offset credits, and term offset credits’’. 

Page 594, lines 2 through 4, strike ‘‘allowance or offset credit established or issued by the Administrator under this title,’’ and insert ‘‘allowance, offset credit, or term offset credit, established or 

issued under the American Clean Energy and Security Act of 2009 

or the amendments made thereby,’’. 

Page 594, line 7, strike ‘‘allowances or offset credits’’ and insert 

‘‘allowances, offset credits, or term offset credits’’. 

Page 594, lines 9 through 11, strike ‘‘allowance or offset credit 

established or issued by the Administrator under this title’’ and insert ‘‘allowance, offset credit, or term offset credit, established or 

issued under the American Clean Energy and Security Act of 2009 

or the amendments made thereby,’’. 

Page 609, line 8, insert ‘‘by promulgating new regulations’’ after 

‘‘subsection (i)’’. 

Page 690, lines 18 and 19, strike ‘‘allowances or offset credits’’ 

and insert ‘‘allowances, offset credits, or term offset credits’’. 

Page 691, lines 9 through 12, amend paragraph (17) to read as 

follows: 

‘‘(17) DOMESTIC OFFSET CREDIT.—For purposes of part D, the 

term ‘domestic offset credit’ means an offset credit issued 

under part D, other than an international offset credit. For 

purposes of part C, the term means any offset credit issued 

under the American Clean Energy and Security Act of 2009, or 

the amendments made thereby. The term does not include a 

term offset credit. 

Page 693, beginning line 13, strike paragraph (29), relating to 

the definition of high conservation priority land. 

Page 693, line 24, strike ‘‘allowance or offset credit’’ and insert 

‘‘allowance, offset credit, or term offset credit’’. 

Page 696, lines 1 and 2, amend paragraph (38) to read as follows: 


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‘‘(38) OFFSET CREDIT.—For purposes of this section and part 

D, the term ‘offset credit’ means an offset credit issued under 

part D. For purposes of part C, the term means any offset credit issued under the American Clean Energy and Security Act 

of 2009, or the amendments made thereby. The term does not 

include a term offset credit. 

Page 696, beginning line 15, strike paragraph (42), relating to 

the definition of renewable biomass, and insert the following new 

paragraph: 

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

means any of the following: 

‘‘(A) Materials, pre-commercial thinnings, or removed 

invasive species from National Forest System land and 

public lands (as defined in section 103 of the Federal Land 

Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments 

(such as trees, wood, brush, thinnings, chips, and slash), 

that are removed as part of a federally recognized timber 

sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore 

ecosystem health, and that are— 

‘‘(i) not from components of the National Wilderness 

Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or 

badly infested trees), components of the National 

Landscape Conservation System, National Monuments, National Conservation Areas, Designated 

Primitive Areas, or Wild and Scenic Rivers corridors; 

‘‘(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land 

manager; and 

‘‘(iii) harvested in accordance with Federal and State 

law, and applicable land management plans. 

‘‘(B) Any organic matter that is available on a renewable 

or recurring basis from non-Federal land or land belonging 

to an Indian or Indian tribe that is held in trust by the 

United States or subject to a restriction against alienation 

imposed by the United States, including— 

‘‘(i) renewable plant material, including— 

‘‘(I) feed grains; 

‘‘(II) other agricultural commodities; 

‘‘(III) other plants and trees; and 

‘‘(IV) algae; and 

‘‘(ii) waste material, including— 

‘‘(I) crop residue; 

‘‘(II) other vegetative waste material (including 

wood waste and wood residues); 

‘‘(III) animal waste and byproducts (including 

fats, oils, greases, and manure); 

‘‘(IV) construction waste; and 

‘‘(V) food waste and yard waste. 

‘‘(C) Residues and byproducts from wood, pulp, or paper 

products facilities.’’. 


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Page 700, lines 2 and 3, strike ‘‘allowance or offset credit established or issued under this title,’’ and insert ‘‘allowance, offset credit, or term offset credit, established or issued under the American 

Clean Energy and Security Act of 2009 or the amendments made 

thereby,’’. 

Page 700, lines 6 and 7, strike ‘‘allowance or offset credit’’ and 

insert ‘‘allowance, offset credit, or term offset credit’’. 

Page 704, line 1, strike ‘‘entities’’. 

Page 705, after line 24, insert the following new paragraph: 

‘‘(3) For vintage year 2012, the Administrator shall allocate 0.35 

percent of emission allowances established for such year under section 721(a) to avoid disincentives to the continued use of existing 

energy-efficient cogeneration facilities at industrial parks, to be distributed in accordance with section 783(f). 

Page 713, after line 12, insert the following new paragraph: 

‘‘(3) To be distributed among the States in accordance with 

the formula in section 132(b) of the American Clean Energy 

and Security Act of 2009 and to be used exclusively for the 

purposes of section 202 of the American Clean Energy and Security Act of 2009 in the following amounts: 

‘‘(A) For vintage years 2012 through 2017, 0.05 percent 

of the emission allowances established for each year under 

section 721(a). 

‘‘(B) For vintage years 2018 through 2050, 0.03 percent 

of the emission allowances established for each year under 

section 721(a). 

Page 715, lines 12 and 15, redesignate paragraphs (1) and (2) as 

subparagraphs (A) and (B), respectively, and move them 2 ems to 

the right. 

Page 715, lines 18 through 24, move the matter 2 ems to the 

right. 

Page 715, after line 24, insert the following new paragraph: 

‘‘(2) The Administrator shall auction, pursuant to section 

791, 0.75 percent of the emission allowances established for 

each of vintage years 2012 and 2013 under section 721(a), and 

shall deposit the proceeds in the Energy Efficiency and Renewable Energy Worker Training Fund established by section 422 

of the American Clean Energy and Security Act of 2009. 

Page 720, line 10, insert ‘‘and subsections (s) and (t)’’ after ‘‘(a) 

through (o)’’. 

Page 720, line 15, insert ‘‘and subsections (s) and (t)’’ after ‘‘(a) 

through (o)’’. 

Page 722, line 3, strike ‘‘or’’. 

Page 722, line 5, insert ‘‘or supplemental agriculture and renewable energy pursuant to subsection (u)(2) of this section,’’ after ‘‘of 

this section,’’. 

Page 723, line 10, strike ‘‘(e)(2) and (f)(2)’’ and insert ‘‘(e)(2), 

(f)(2), and (u)(2)’’. 

Page 723, lines 23 and 24, strike ‘‘(e)(2) and (f)(2)’’ and insert 

‘‘(e)(2), (f)(2), and (u)(2)’’. 

Page 724, after line 8, insert the following new subsections: 


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‘‘(t) COMPENSATION FOR EARLY ACTORS.—For vintage year 2012, 

the Administrator shall allocate for compensation for early actors 

1 percent of emission allowances established under section 721(a), 

to be distributed in accordance with section 795 of the American 

Clean Energy and Security Act of 2009. 

‘‘(u) SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY.— 

‘‘(1) IN GENERAL.—For vintage years 2012 through 2016, the 

Administrator shall allocate 0.28 percent of emission allowances established under section 721(a), to be distributed in accordance with section 788 of the American Clean Energy and 

Security Act of 2009. 

‘‘(2) CARRYOVER.—After the Administrator distributes emission allowances pursuant to section 788 for any given vintage 

year, any emission allowances allocated to supplemental agriculture and renewable energy pursuant to this subsection that 

have not been so distributed shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation to such entities 

for that later vintage year. 

Page 729, line 4, strike ‘‘September 30, 2012’’ and insert ‘‘January 1, 2013’’. 

Page 729, lines 9 and 10, strike ‘‘September 30, 2012’’ and insert 

‘‘January 1, 2013’’. 

Page 733, line 3, page 738, line 21, page 741, line 14, page 743, 

line 13, page 756, line 8, strike ‘‘(f)’’ and insert ‘‘(g)’’. 

Page 747, lines 21, through 23, strike ‘‘provided that such year 

shall not be any year after 2012; or’’ and insert ‘‘if such unit commences operation before January 1, 2012;’’. 

Page 748, line 3, strike the period and insert ‘‘, and before October 1, 2012; or’’. 

Page 748, after line 3, insert the following new clause: 

‘‘(iii) calendar year 2013, if such unit commences operation on or after October 1, 2012, and before January 1, 2013. 

Page 757, after line 19, insert the following new subsection: 

(f) CERTAIN COGENERATION FACILITIES.— 

(1) ELIGIBLE COGENERATION FACILITIES.—For purposes of this 

subsection, an ‘‘eligible cogeneration facility’’ is a facility that— 

(A) is a qualifying co-generation facility (as that term is 

defined in section 3(18)(B) of the Federal Power Act (16 

U.S.C. 796(18)(B)); 

(B) derives 80 percent or more of its heat input from 

coal, petroleum coke, or any combination of these 2 fuels; 

(C) has a nameplate capacity of 100 megawatts or greater; 

(D) was in operation as of January 1, 2009, and remains 

in operation as of the date of any distribution of emission 

allowances under this subsection; 

(E) in calendar years 2006 through 2008 sold, and as of 

the date of any distribution of emission allowances under 

this section sells, steam or electricity directly and solely to 

multiple, separately-owned industrial or commercial faciliVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00080 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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ties co-located at the same site with the cogeneration facility; and 

(F) is not eligible to receive allowances under any other 

subsection of this section or under part F of this title. 

(2) DISTRIBUTION.—The Administrator shall distribute the 

emission allowances allocated pursuant to section 782(a)(3) to 

owners or operators of eligible cogeneration facilities ratably 

based on the carbon dioxide emissions of each such facility in 

calendar years 2006 through 2008. The Administrator— 

(A) shall not, in any year, distribute emission allowances 

under this subsection to the owner or operator of any eligible cogeneration facility in excess of the amount necessary 

to offset such facility’s cost of compliance with the requirements of this title in that year; and 

(B) may distribute such allowances over a period of 

years if annual distributions under this subsection would 

otherwise exceed the limitation in subparagraph (A), provided that in no event shall distributions be made under 

this subsection after calendar year 2025. 

(3) REQUIREMENTS.—The Administrator shall, by regulation, 

establish requirements to ensure that the value of any emission allowances distributed pursuant to this subsection are 

passed through, on an equitable basis, to the facilities to which 

the relevant cogeneration facility provides electricity or steam 

deliveries, including any facility owned or operated by the 

owner or operator of the cogeneration facility. 

Page 757, line 20, redesignate subsection (f) as subsection (g). 

Page 774, line 16, amend section 788 to read as follows: 

‘‘SEC. 788. SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY 

INCENTIVES PROGRAMS. 

‘‘(a) IN GENERAL.—Emission allowances allocated pursuant to 

section 782(u) shall be distributed by the Administrator at the direction of the Secretary of Energy and the Secretary of Agriculture 

in accordance with this section. Not less than 50 percent of the allowances shall be available for the program established pursuant 

to subsection (b). 

‘‘(b) AGRICULTURE INCENTIVES PROGRAM.— 

‘‘(1) ESTABLISHMENT.—The Secretary of Agriculture shall establish by rule a program to provide incentives in the form of 

emission allowances for activities undertaken in the agriculture sector that reduce greenhouse gas emissions or sequester carbon. Under this program, the Secretary of Agriculture 

shall provide incentives for projects and activities that— 

‘‘(A) reduce or avoid greenhouse gas emissions, or sequester greenhouse gases, but do not meet the criteria for 

offset credits established under the American Clean Energy and Security Act of 2009; 

‘‘(B) support actions to adapt to climate change; or 

‘‘(C) prevent conversion of land that would increase 

greenhouse gas emissions (including projects and activities 

that complement or supplement conservation programs administered by the Secretary). 

‘‘(2) CONSIDERATIONS.—In designing this program, the Secretary shall ensure that it provides support for— 


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‘‘(A) development and demonstration of practices to reduce greenhouse gas emissions or sequester carbon in agricultural operations where there are limited recognized opportunities to achieve such emissions reductions or sequestration; and 

‘‘(B) projects that reduce greenhouse gas emissions or increase sequestration of greenhouse gases and also achieve 

other significant environmental benefits, such as the improvement of water or air quality. 

‘‘(3) RESEARCH.—The Secretary shall establish by rule a program to conduct research to develop additional projects and activities for crops to find additional techniques and methods to 

reduce greenhouse gas emissions or sequester greenhouse 

gases that may or may not meet the criteria for offset credits 

established under the American Clean Energy and Security 

Act of 2009. 

‘‘(4) USE OF INFORMATION.—Information and data generated 

by this program should, where relevant, be used to inform the 

development of additional offset practices and methodologies. 

‘‘(c) RENEWABLE ENERGY INCENTIVES PROGRAM.—The Secretary 

of Energy and the Administrator shall establish by rule a program 

to provide allowances to State and local governments to support 

the deployment of renewable energy infrastructure.’’. 

Page 776, line 4, strike ‘‘and’’. 

Page 776, line 8, strike the period and insert ‘‘; and’’. 

Page 776, after line 8, insert the following new paragraph: 

‘‘(4) require that, once exchanged, the credit or other instrument be retired for purposes of use under the program by or 

for which it was originally issued. 

Page 785, line 16, strike the closing quotation mark and the second period. 

Page 785, after line 16, insert the following new section: 

‘‘SEC. 795. EXCHANGE FOR EARLY ACTION OFFSET CREDITS. 

‘‘(a) IN GENERAL.—Emission allowances allocated pursuant to 

section 782(t) shall be distributed by the Administrator in accordance with this section. Not later than one year after the date of enactment of this title, the Administrator shall issue regulations allowing— 

‘‘(1) any person in the United States to exchange instruments in the nature of offset credits issued before January 1, 

2009, by a State or voluntary offset program with respect to 

which the Administrator has made an affirmative determination under section 740(a)(2), for emissions allowances established by the Administrator under section 721(a); and 

‘‘(2) the Administrator to provide compensation in the form 

of emission allowances to entities that do not meet the criteria 

of paragraph (1) and meet the criteria of this paragraph for 

documented early reductions or avoidance of greenhouse gas 

emissions or greenhouse gases sequestered before January 1, 

2009, from projects begun before January 1, 2009, where— 

‘‘(A) the entity publicly stated greenhouse gas reduction 

goals and publicly reported against those goals; 


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‘‘(B) the entity demonstrated entity-wide net greenhouse 

gas reductions; and 

‘‘(C) the entity demonstrates the actual projects undertaken to make reductions and documents the reductions 

(e.g., through documentation of engineering projects). 

‘‘(b) REGULATIONS.—Regulations issued under subsection (a) 

shall— 

‘‘(1) provide that a person exchanging credits under subsection (a)(1) receive emission allowances established under 

section 721(a) in an amount for which the monetary value is 

equivalent to the average monetary value of the credits during 

the period from January 1, 2006, to January 1, 2009, as adjusted for inflation to reflect current dollar values at the time 

of the exchange; 

‘‘(2) provide that a person receiving compensation for documented early action under subsection (a)(2) shall receive emission allowances established under section 721(a) in an amount 

that is approximately equivalent in value to the carbon dioxide 

equivalent per ton value received by entities in exchange for 

credits under paragraph (1) (as adjusted for inflation to reflect 

current dollar values at the time of the exchange), as determined by the Administrator; 

‘‘(3) provide that only reductions or avoidance of greenhouse 

gas emissions, or sequestration of greenhouse gases, achieved 

by activities in the United States between January 1, 2001, 

and January 1, 2009, may be compensated under this section, 

and only credits issued for such activities may be exchanged 

under this section; 

‘‘(4) provide that only credits that have not been retired or 

otherwise used to meet a voluntary or mandatory commitment, 

and have not expired, may be exchanged under subsection 

(a)(1); 

‘‘(5) require that, once exchanged, the credit be retired for 

purposes of use under the program by or for which it was originally issued; and 

‘‘(6) establish a deadline by which persons must exchange 

the credits or request compensation for early action under this 

section. 

‘‘(c) PARTICIPATION.—Participation in an exchange of credits for 

allowances or compensation for early action authorized by this section shall not preclude any person from participation in an offset 

credit program established under the American Clean Energy and 

Security Act of 2009. 

‘‘(d) DISTRIBUTION.—Of the emission allowances distributed 

under this section, a quantity equal to 0.75 percent of vintage year 

2012 emission allowances established under section 721(a) shall be 

distributed pursuant to subsection (a)(1), and a quantity equal to 

0.25 percent of vintage year 2012 emission allowances established 

under section 721(a) shall be distributed pursuant to subsection 

(a)(2).’’. 

Page 856, after line 8, insert the following new section: 

SEC. 340. REDUCING ACID RAIN AND MERCURY POLLUTION. 

Not later than 18 months after the date of enactment of this Act, 

the Administrator shall submit to Congress a report that analyzes 


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the effects of different carbon dioxide reduction strategies and technologies on the emissions of mercury, sulfur dioxide, and nitrogen 

oxide, which cause acid rain, particulate matter, ground level 

ozone, mercury contamination, and other environmental problems. 

The report shall assess a variety of carbon reduction technologies, 

including the application of various carbon capture and sequestration technologies for both new and existing power plants. The report shall assess the current scientific and technical understanding 

of the interplay between the various technologies and emissions of 

air pollutants, identify hurdles to strategies that could cost-effectively reduce emissions of multiple pollutants, and make appropriate recommendations. 

Page 856, strike lines 19 through 21. 

Page 856, line 22, strike ‘‘(2)’’ and insert ‘‘(1)’’. 

Page 857, strike lines 1 through 8. 

Page 857, line 9, strike ‘‘(5)’’ and insert ‘‘(2)’’. 

Page 857, strike line 15 and all that follows through line 7 on 

page 858. 

Page 858, line 8, strike ‘‘(7)’’ and insert ‘‘(3)’’. 

Page 858, beginning on line 23, strike ‘‘(including an entity’s 

fraudulent or manipulative conduct with respect to regulated allowance derivatives that benefits the entity in regulated allowance 

markets)’’. 

Page 860, line 3, strike ‘‘over-the-counter trading’’ and insert 

‘‘trading regulated allowances outside of trading facilities’’. 

Page 870, strike line 18 and all that follows through line 5 on 

page 871. 

Page 871, line 6, strike ‘‘(7)’’ and insert ‘‘(6)’’. 

Page 871, strike line 20 and all that follows through line 2 on 

page 876. 

Page 876, line 3, strike ‘‘(d)’’ and insert ‘‘(c)’’. 

Page 876, line 10, strike ‘‘President’’ and insert ‘‘Commodity Futures Trading Commission’’. 

Page 876, line 19, strike ‘‘President’’ and insert ‘‘Commodity Futures Trading Commission’’. 

Page 877, strike lines 1 through 11. 

Page 877, line 12, strike ‘‘(f)’’ and insert ‘‘(d)’’. 

Page 877, line 21, strike ‘‘(g)’’ and insert ‘‘(e)’’. 

Page 878, line 4, strike ‘‘(h)’’ and insert ‘‘(f)’’. 

Page 878, beginning on line 7, strike ‘‘Federal agency with jurisdiction over regulated allowance derivatives pursuant to subsection 

(c)(1)’’ and insert ‘‘Commodity Futures Trading Commission’’. 

Page 878, line 9, strike ‘‘collect and’’. 

Page 878, strike line 24 and all that follows through line 7 on 

page 879. 

Page 879, line 8, strike ‘‘(E)’’ and insert ‘‘(D)’’. 

Page 879, line 12, strike ‘‘(F)’’ and insert ‘‘(E)’’. 

Page 879, line 14, strike ‘‘(G)’’ and insert ‘‘(F)’’. 

Page 879, line 17, strike ‘‘(H)’’ and insert ‘‘(G)’’. 


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Page 879, beginning on line 18, strike ‘‘in conjunction with the 

entities, deems’’ and insert ‘‘and the Commodity Futures Trading 

Commission deem’’. 

Page 879, line 23, strike ‘‘Federal agency’’ and insert ‘‘Commodity 

Futures Trading Commission’’. 

Page 879, line 24, insert ‘‘Committee on Agriculture and’’ before 

‘‘Committee’’. 

Page 879, line 25, insert ‘‘Committee on Agriculture, Nutrition, 

and Forestry and’’ before ‘‘Committee’’. 

Page 880, beginning on line 5, strike ‘‘, in conjunction with the 

Federal agency, considers’’ and insert ‘‘and the Commodity Futures 

Trading Commission consider’’. 

Page 880, strike lines 12 through 22. 

Page 880, line 23, strike ‘‘(c)’’ and insert ‘‘(b)’’. 

Page 881, line 5, strike ‘‘(d)’’ and insert ‘‘(c)’’. 

Page 881, line 6, strike ‘‘401(f)’’ and insert ‘‘401(d)’’. 

Page 882, before line 5, insert the following: 

SEC. 342. CARBON DERIVATIVE MARKETS. 

(a) Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 

1a(14)) is amended by striking ‘‘or an agricultural commodity’’ and 

inserting ‘‘, an agricultural commodity, or any emission allowance, 

compensatory allowance, offset credit, or Federal renewable electricity credit established or issued under the American Clean Energy and Security Act of 2009’’. 

(b) Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by adding 

at the end the following: 

‘‘(6) This subsection does not apply to any agreement, contract, or transaction for any emission allowance, compensatory 

allowance, offset credit, or Federal renewable electricity credit 

established or issued under the American Clean Energy and 

Security Act of 2009.’’. 

Page 913, strike line 6 and all that follows through line 8 on 

page 914 and insert the following: 

SEC. 358. EFFECT OF DERIVATIVES REGULATORY REFORM LEGISLATION. 

(a) STATUTES.—Upon the passage of legislation that includes derivatives regulatory reform, sections 351, 352, 354, 355, 356, and 

357 shall be repealed. 

(b) REGULATIONS.—Upon the passage of legislation that includes 

derivatives regulatory reform, any regulations promulgated under 

section 351, 352, 354, 355, 356, or 357 shall be considered null and 

void. 

Page 923, after line 13, insert the following new section: 

SEC. 360. PRESIDENTIAL REVIEW OF REGULATIONS. 

Not later than 24 months after the date of enactment of this Act, 

the President shall review the offset regulations and derivatives 

regulations promulgated pursuant to the American Clean Energy 

and Security Act of 2009. The President shall determine whether 

such regulations adequately protect the United States financial 

system from systemic risk. 


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Page 923, line 16, through page 951, line 13, amend subtitle A 

to read as follows: 

Subtitle A—Ensuring Real Reductions in 

Industrial Emissions 

SEC. 401. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS. 

Title VII of the Clean Air Act is amended by inserting after part 

E the following new part: 

‘‘PART F—ENSURING REAL REDUCTIONS IN 

INDUSTRIAL EMISSIONS 

‘‘SEC. 761. PURPOSES. 

‘‘(a) PURPOSES OF PART.—The purposes of this part are— 

‘‘(1) to promote a strong global effort to significantly reduce 

greenhouse gas emissions, and, through this global effort, stabilize greenhouse gas concentrations in the atmosphere at a 

level that will prevent dangerous anthropogenic interference 

with the climate system; and 

‘‘(2) to prevent an increase in greenhouse gas emissions in 

countries other than the United States as a result of direct and 

indirect compliance costs incurred under this title. 

‘‘(b) PURPOSES OF SUBPART 1.—The purposes of subpart 1 are additionally— 

‘‘(1) to provide a rebate to the owners and operators of entities in domestic eligible industrial sectors for their greenhouse 

gas emission costs incurred under this title, but not for costs 

associated with other related or unrelated market dynamics; 

‘‘(2) to design such rebates in a way that will prevent carbon 

leakage while also rewarding innovation and facility-level investments in energy efficiency performance improvements; and 

‘‘(3) to eliminate or reduce distribution of emission allowances under subpart 1 when such distribution is no longer necessary to prevent carbon leakage from eligible industrial sectors. 

‘‘(c) PURPOSES OF SUBPART 2.—The purposes of subpart 2 are additionally— 

‘‘(1) to induce foreign countries, and, in particular, fast-growing developing countries, to take substantial action with respect to their greenhouse gas emissions consistent with the 

Bali Action Plan developed under the United Nations Framework Convention on Climate Change; and 

‘‘(2) to ensure that the measures described in subpart 2 are 

designed and implemented in a manner consistent with applicable international agreements to which the United States is 

a party. 

‘‘SEC. 762. DEFINITIONS. 

‘‘In this part: 

‘‘(1) CARBON LEAKAGE.—The term ‘carbon leakage’ means 

any substantial increase (as determined by the Administrator) 

in greenhouse gas emissions by industrial entities located in 

other countries if such increase is caused by an incremental 


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cost of production increase in the United States resulting from 

the implementation of this title. 

‘‘(2) COVERED GOOD.—The term ‘covered good’ means a good 

that, as identified by the Administrator by regulation, is either— 

‘‘(A) entered under a heading or subheading of the Harmonized Tariff Schedule of the United States that corresponds to the NAICS code for an eligible industrial sector, as established in the concordance between NAICS 

codes and the Harmonized Tariff Schedule of the United 

States prepared by the United States Census Bureau; or 

‘‘(B) a manufactured item for consumption. 

‘‘(3) ELIGIBLE INDUSTRIAL SECTOR.—The term ‘eligible industrial sector’ means an industrial sector determined by the Administrator under section 763(b) to be eligible to receive emission allowance rebates under subpart 1. 

‘‘(4) INDUSTRIAL SECTOR.—The term ‘industrial sector’ means 

any sector that is in the manufacturing sector (as defined in 

NAICS codes 31, 32, and 33) or that beneficiates or otherwise 

processes (including agglomeration) metal ores, including iron 

and copper ores, soda ash, or phosphate. The extraction of 

metal ores, soda ash, or phosphate shall not be considered to 

be an industrial sector. 

‘‘(5) MANUFACTURED ITEM FOR CONSUMPTION.— ‘‘(A) IN GENERAL.—The term ‘manufactured item for consumption’ means any good— 

‘‘(i) that includes in substantial amounts one or 

more goods like the goods produced by an eligible industrial sector; 

‘‘(ii) with respect to which an international reserve 

allowance program pursuant to subpart 2 is in effect 

with regard to the eligible industrial sector and the 

quantity of international reserve allowances is not 

zero pursuant to section 768(b); 

‘‘(iii) with respect to which the trade intensity of the 

industrial sector that produces the good, as measured 

consistent with section 763(b)(2)(A)(iii), is at least 15 

percent; and 

‘‘(iv) for which the domestic producers of the good 

have demonstrated, and the Administrator has determined, that the application of the international reserve allowance program pursuant to subpart 2 is 

technically and administratively feasible and appropriate to achieve the purposes of this part, taking into 

account the energy and greenhouse gas intensity of 

the industrial sector that produces the good, as measured consistent with section 763(b)(2)(A)(ii), and the 

ability of such producers to pass on cost increases and 

other appropriate factors. 

‘‘(B) RULE OF CONSTRUCTION.—A determination of the 

Administrator under subparagraph (A)(iv) shall not be considered to be a determination of the President under section 767(b). 

‘‘(6) NAICS.—The term ‘NAICS’ means the North American 

Industrial Classification System of 2002. 


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‘‘(7) OUTPUT.—The term ‘output’ means the total tonnage or 

other standard unit of production (as determined by the Administrator) produced by an entity in an industrial sector. The 

output of the cement sector is hydraulic cement, and not clinker. 

‘‘Subpart 1—Emission Allowance Rebate Program 

‘‘SEC. 763. ELIGIBLE INDUSTRIAL SECTORS. 

‘‘(a) LIST.— ‘‘(1) INITIAL LIST.—Not later than June 30, 2011, the Administrator shall publish in the Federal Register a list of eligible 

industrial sectors pursuant to subsection (b). Such list shall include the amount of the emission allowance rebate per unit of 

production that shall be provided to entities in each eligible industrial sector in the following two calendar years pursuant to 

section 764. 

‘‘(2) SUBSEQUENT LISTS.—Not later than February 1, 2013, 

and every four years thereafter, the Administrator shall publish in the Federal Register an updated version of the list published under paragraph (1). 

‘‘(b) ELIGIBLE INDUSTRIAL SECTORS.— ‘‘(1) IN GENERAL.—Not later than June 30, 2011, the Administrator shall promulgate a rule designating, based on the criteria under paragraph (2), the industrial sectors eligible for 

emission allowance rebates under this subpart. 

‘‘(2) PRESUMPTIVELY ELIGIBLE INDUSTRIAL SECTORS.— ‘‘(A) ELIGIBILITY CRITERIA.— ‘‘(i) IN GENERAL.—An owner or operator of an entity 

shall be eligible to receive emission allowance rebates 

under this subpart if such entity is in an industrial 

sector that is included in a six-digit classification of 

the NAICS that meets the criteria in both clauses (ii) 

and (iii), or the criteria in clause (iv). 

‘‘(ii) ENERGY OR GREENHOUSE GAS INTENSITY.—As 

determined by the Administrator, the industrial sector 

had— 

‘‘(I) an energy intensity of at least 5 percent, 

calculated by dividing the cost of purchased electricity and fuel costs of the sector by the value of 

the shipments of the sector, based on data described in subparagraph (D); or 

‘‘(II) a greenhouse gas intensity of at least 5 percent, calculated by dividing— 

‘‘(aa) the number 20 multiplied by the number of tons of carbon dioxide equivalent greenhouse gas emissions (including direct emissions from fuel combustion, process emissions, 

and indirect emissions from the generation of 

electricity used to produce the output of the 

sector) of the sector based on data described 

in subparagraph (D); by 

‘‘(bb) the value of the shipments of the sector, based on data described in subparagraph 

(D). 


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‘‘(iii) TRADE INTENSITY.—As determined by the Administrator, the industrial sector had a trade intensity 

of at least 15 percent, calculated by dividing the value 

of the total imports and exports of such sector by the 

value of the shipments plus the value of imports of 

such sector, based on data described in subparagraph 

(D). 

‘‘(iv) VERY HIGH ENERGY OR GREENHOUSE GAS INTEN- SITY.—As determined by the Administrator, the industrial sector had an energy or greenhouse gas intensity, 

as calculated under clause (ii)(I) or (II), of at least 20 

percent. 

‘‘(B) METAL AND PHOSPHATE PRODUCTION CLASSIFIED

UNDER MORE THAN ONE NAICS CODE.—For purposes of this 

section, the Administrator shall— 

‘‘(i) aggregate data for the beneficiation or other 

processing (including agglomeration) of metal ores, including iron and copper ores, soda ash, or phosphate 

with subsequent steps in the process of metal and 

phosphate manufacturing, regardless of the NAICS 

code under which such activity is classified; and 

‘‘(ii) aggregate data for the manufacturing of steel 

with the manufacturing of steel pipe and tube made 

from purchased steel in a nonintegrated process. 

‘‘(C) EXCLUSION.—The petroleum refining sector shall 

not be an eligible industrial sector. 

‘‘(D) DATA SOURCES.— ‘‘(i) ELECTRICITY AND FUEL COSTS, VALUE OF SHIP- MENTS.—The Administrator shall determine electricity 

and fuel costs and the value of shipments under this 

subsection from data from the United States Census 

Annual Survey of Manufacturers. The Administrator 

shall take the average of data from as many of the 

years of 2004, 2005, and 2006 for which such data are 

available. If such data are unavailable, the Administrator shall make a determination based upon 2002 or 

2006 data from the most detailed industrial classification level of Energy Information Agency’s Manufacturing Energy Consumption Survey (using 2006 data 

if it is available) and the 2002 or 2007 Economic Census of the United States (using 2007 data if it is available). If data from the Manufacturing Energy Consumption Survey or Economic Census are unavailable 

for any sector at the six-digit classification level in the 

NAICS, then the Administrator may extrapolate the 

information necessary to determine the eligibility of a 

sector under this paragraph from available Manufacturing Energy Consumption Survey or Economic Census data pertaining to a broader industrial category 

classified in the NAICS. If data relating to the 

beneficiation or other processing (including agglomeration) of metal ores, including iron and copper ores, 

soda ash, or phosphate are not available from the 

specified data sources, the Administrator shall use the 

best available Federal or State government data and 


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may use, to the extent necessary, representative data 

submitted by entities that perform such beneficiation 

or other processing (including agglomeration), in making a determination. Fuel cost data shall not include 

the cost of fuel used as feedstock by an industrial sector. 

‘‘(ii) IMPORTS AND EXPORTS.—The Administrator 

shall base the value of imports and exports under this 

subsection on United States International Trade Commission data. The Administrator shall take the average of data from as many of the years of 2004, 2005, 

and 2006 for which such data are available. If data 

from the United States International Trade Commission are unavailable for any sector at the six-digit 

classification level in the NAICS, then the Administrator may extrapolate the information necessary to 

determine the eligibility of a sector under this paragraph from available United States International 

Trade Commission data pertaining to a broader industrial category classified in the NAICS. 

‘‘(iii) PERCENTAGES.—The Administrator shall round 

the energy intensity, greenhouse gas intensity, and 

trade intensity percentages under subparagraph (A) to 

the nearest whole number. 

‘‘(iv) GREENHOUSE GAS EMISSION CALCULATIONS.— 

When calculating the tons of carbon dioxide equivalent 

greenhouse gas emissions for each sector under subparagraph (A)(ii)(II)(aa), the Administrator— 

‘‘(I) shall use the best available data from as 

many of the years 2004, 2005, and 2006 for which 

such data is available; and 

‘‘(II) may, to the extent necessary with respect 

to a sector, use economic and engineering models 

and the best available information on technology 

performance levels for such sector. 

‘‘(3) ADMINISTRATIVE DETERMINATION OF ADDITIONAL ELIGIBLE INDUSTRIAL SECTORS.— 

‘‘(A) UPDATED TRADE INTENSITY DATA.—The Administrator shall designate as eligible to receive emission allowance rebates under this subpart an industrial sector that— 

‘‘(i) met the energy or greenhouse gas intensity criteria in paragraph (2)(A)(ii) as of the date of promulgation of the rule under paragraph (1); and 

‘‘(ii) meets the trade intensity criteria in paragraph 

(2)(A)(iii), using data from any year after 2006. 

‘‘(B) INDIVIDUAL SHOWING PETITION.— 

‘‘(i) PETITION.—In addition to designation under 

paragraph (2) or subparagraph (A) of this paragraph, 

the owner or operator of an entity in an industrial sector may petition the Administrator to designate as eligible industrial sectors under this subpart an entity or 

a group of entities that— 

‘‘(I) represent a subsector of a six-digit section of 

the NAICS code; and 


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‘‘(II) meet the eligibility criteria in both clauses 

(ii) and (iii) of paragraph (2)(A), or the eligibility 

criteria in clause (iv) of paragraph (2)(A). 

‘‘(ii) DATA.—In making a determination under this 

subparagraph, the Administrator shall consider data 

submitted by the petitioner that is specific to the entity, data solicited by the Administrator from other entities in the subsector, if such other entities exist, and 

data specified in paragraph (2)(D). 

‘‘(iii) BASIS OF SUBSECTOR DETERMINATION.—The Administrator shall determine an entity or group of entities to be a subsector of a six-digit section of the 

NAICS code based only upon the products manufactured and not the industrial process by which the 

products are manufactured, except that the Administrator may determine an entity or group of entities 

that manufacture a product from primarily virgin material to be a separate subsector from another entity 

or group of entities that manufacture the same product primarily from recycled material. 

‘‘(iv) USE OF MOST RECENT DATA.—In determining 

whether to designate a sector or subsector as an eligible industrial sector under this subparagraph, the Administrator shall use the most recent data available 

from the sources described in paragraph (2)(D), rather 

than the data from the years specified in paragraph 

(2)(D), to determine the trade intensity of such sector 

or subsector, but only for determining such trade intensity. 

‘‘(v) FINAL ACTION.—The Administrator shall take 

final action on such petition no later than 6 months 

after the petition is received by the Administrator. 

‘‘SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES. 

‘‘(a) DISTRIBUTION SCHEDULE.— ‘‘(1) IN GENERAL.—For each vintage year, the Administrator 

shall distribute pursuant to this section emission allowances 

made available under section 782(e), no later than October 31 

of the preceding calendar year. The Administrator shall make 

such annual distributions to the owners and operators of each 

entity in an eligible industrial sector in the amount of emission 

allowances calculated under subsection (b), except that— 

‘‘(A) for vintage years 2012 and 2013, the distribution for 

a covered entity shall be pursuant to the entity’s indirect 

carbon factor as calculated under subsection (b)(3); 

‘‘(B) for vintage year 2026 and thereafter, the distribution shall be pursuant to the amount calculated under subsection (b) multiplied by, except as modified by the President pursuant to section 767(d)(1)(C) for a sector— 

‘‘(i) 90 percent for vintage year 2026; 

‘‘(ii) 80 percent for vintage year 2027; 

‘‘(iii) 70 percent for vintage year 2028; 

‘‘(iv) 60 percent for vintage year 2029; 

‘‘(v) 50 percent for vintage year 2030; 

‘‘(vi) 40 percent for vintage year 2031; 

‘‘(vii) 30 percent for vintage year 2032; 


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‘‘(viii) 20 percent for vintage year 2033; 

‘‘(ix) 10 percent for vintage year 2034; and 

‘‘(x) 0 percent for vintage year 2035 and thereafter. 

‘‘(2) RESUMPTION OF REDUCTION.—If the President has modified the percentage stated in paragraph (1)(B) under section 

767(d)(1)(C), and the President subsequently makes a determination under section 767(c) for an eligible industrial sector 

that more than 85 percent of United States imports for that 

sector are produced or manufactured in countries that have 

met at least one of the criteria in that section, then the 10-year 

reduction schedule set forth in paragraph (1)(B) of this subsection shall begin in the next vintage year, with the percentage reduction based on the amount of the distribution of emission allowances under this section in the previous year. 

‘‘(3) NEWLY ELIGIBLE SECTORS.—In addition to receiving a 

distribution of emission allowances under this section in the 

first distribution occurring after an industrial sector is designated as eligible under section 763(b)(3), the owner or operator of an entity in that eligible industrial sector may receive 

a prorated share of any emission allowances made available for 

distribution under this section that were not distributed for the 

year in which the petition for eligibility was granted under section 763(b)(3)(A). 

‘‘(4) CESSATION OF QUALIFYING ACTIVITIES.—If, as determined 

by the Administrator, a facility is no longer in an eligible industrial sector designated under section 763— 

‘‘(A) the Administrator shall not distribute emission allowances to the owner or operator of such facility under 

this section; and 

‘‘(B) the owner or operator of such facility shall return 

to the Administrator all allowances that have been distributed to it for future vintage years and a pro-rated amount 

of allowances distributed to the facility under this section 

for the vintage year in which the facility ceases to be in 

an eligible industrial sector designated under section 763. 

‘‘(b) CALCULATION OF DIRECT AND INDIRECT CARBON FACTORS.— ‘‘(1) IN GENERAL.— ‘‘(A) COVERED ENTITIES.—Except as provided in subsection (a), for covered entities that are in eligible industrial sectors, the amount of emission allowance rebates 

shall be based on the sum of the covered entity’s direct 

and indirect carbon factors. 

‘‘(B) OTHER ELIGIBLE ENTITIES.—For entities that are in 

eligible industrial sectors but are not covered entities, the 

amount of emission allowance rebates shall be based on 

the entity’s indirect carbon factor. 

‘‘(C) NEW ENTITIES.—Not later than 2 years after the 

date of enactment of this title, the Administrator shall 

issue regulations governing the distribution of emission allowance rebates for the first and second years of operation 

of a new entity in an eligible industrial sector. These regulations shall provide for— 

‘‘(i) the distribution of emission allowance rebates to 

such entities based on comparable entities in the same 

sector; and 


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‘‘(ii) an adjustment in the third and fourth years of 

operation to reconcile the total amount of emission allowance rebates received during the first and second 

years of operation to the amount the entity would 

have received during the first and second years of operation had the appropriate data been available. 

‘‘(2) DIRECT CARBON FACTOR.—The direct carbon factor for a 

covered entity for a vintage year is the product of— 

‘‘(A) the average annual output of the covered entity for 

the two years preceding the year of the distribution; and 

‘‘(B) the most recent calculation of the average direct 

greenhouse gas emissions (expressed in tons of carbon dioxide equivalent) per unit of output for all covered entities 

in the sector, as determined by the Administrator under 

paragraph (4). 

‘‘(3) INDIRECT CARBON FACTOR.— ‘‘(A) IN GENERAL.—The indirect carbon factor for an entity for a vintage year is the product obtained by multiplying the average annual output of the entity for the two 

years preceding the year of the distribution by both the 

electricity emissions intensity factor determined pursuant 

to subparagraph (B) and the electricity efficiency factor determined pursuant to subparagraph (C) for the year concerned. 

‘‘(B) ELECTRICITY EMISSIONS INTENSITY FACTOR.— ‘‘(i) IN GENERAL.—Each person selling electricity to 

the owner or operator of an entity in any sector designated as an eligible industrial sector under section 

763(b) shall provide the owner or operator of the entity and the Administrator, on an annual basis, the electricity emissions intensity factor for the entity. The 

electricity emissions intensity factor for the entity, expressed in tons of carbon dioxide equivalents per kilowatt hour, is determined by dividing— 

‘‘(I) the annual sum of the hourly product of— 

‘‘(aa) the electricity purchased by the entity 

from that person in each hour (expressed in 

kilowatt hours); multiplied by 

‘‘(bb) the marginal or weighted average tons 

of carbon dioxide equivalent per kilowatt hour 

that are reflected in the electricity charges to 

the entity, as determined by the entity’s retail 

rate arrangements; by 

‘‘(II) the total kilowatt hours of electricity purchased by the entity from that person during that 

year. 

‘‘(ii) USE OF OTHER DATA TO DETERMINE FACTOR.— 

Where it is not possible to determine the precise electricity emissions intensity factor for an entity using 

the methodology in clause (i), the person selling electricity shall use the monthly average data reported by 

the Energy Information Administration or collected 

and reported by the Administrator for the utility serving the entity to determine the electricity emissions 

intensity factor. 


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‘‘(C) ELECTRICITY EFFICIENCY FACTOR.—The electricity efficiency factor is the average amount of electricity (in kilowatt hours) used per unit of output for all entities in the 

relevant sector, as determined by the Administrator based 

on the best available data, including data provided under 

paragraph (6). 

‘‘(D) INDIRECT CARBON FACTOR REDUCTION.—If an electricity provider received a free allocation of emission allowances pursuant to section 782(a), the Administrator shall 

adjust the indirect carbon factor to avoid rebates to the eligible entity for costs that the Administrator determines 

were not incurred by the eligible entity because the allowances were freely allocated to the eligible entity’s electricity provider and used for the benefit of industrial consumers. 

‘‘(4) GREENHOUSE GAS INTENSITY CALCULATIONS.—The Administrator shall calculate the average direct greenhouse gas 

emissions (expressed in tons of carbon dioxide equivalent) per 

unit of output and the electricity efficiency factor for all covered entities in each eligible industrial sector every four years, 

using an average of the four most recent years of the best 

available data. For purposes of the lists required to be published no later than February 1, 2013, the Administrator shall 

use the best available data for the maximum number of years, 

up to 4 years, for which data are available. 

‘‘(5) ENSURING EFFICIENCY IMPROVEMENTS.—When making 

greenhouse gas calculations, the Administrator shall— 

‘‘(A) limit the average direct greenhouse gas emissions 

per unit of output, calculated under paragraph (4), for any 

eligible industrial sector to an amount that is not greater 

than it was in any previous calculation under this subsection; 

‘‘(B) limit the electricity emissions intensity factor, calculated under paragraph (3)(B) and resulting from a 

change in electricity supply, for any entity to an amount 

that is not greater than it was during any previous year; 

and 

‘‘(C) limit the electricity efficiency factor, calculated 

under paragraph (3)(C), for any eligible industrial sector to 

an amount that is not greater than it was in any previous 

calculation under this subsection. 

‘‘(6) DATA SOURCES.—For the purposes of this subsection— 

‘‘(A) the Administrator shall use data from the greenhouse gas registry established under section 713, where it 

is available; and 

‘‘(B) each owner or operator of an entity in an eligible industrial sector and each department, agency, and instrumentality of the United States shall provide the Administrator with such information as the Administrator finds 

necessary to determine the direct carbon factor and the indirect carbon factor for each entity subject to this section. 

‘‘(c) TOTAL MAXIMUM DISTRIBUTION.—Notwithstanding subsections (a) and (b), the Administrator shall not distribute more allowances for any vintage year pursuant to this section than are allocated for use under this subpart pursuant to section 782(e) for 


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that vintage year. For any vintage year for which the total emission allowance rebates calculated pursuant to this section exceed 

the number of allowances allocated pursuant to section 782(e), the 

Administrator shall reduce each entity’s distribution on a pro rata 

basis so that the total distribution under this section equals the 

number of allowances allocated under section 782(e). 

‘‘(d) IRON AND STEEL SECTOR.—For purposes of this section, the 

Administrator shall consider as in different industrial sectors— 

‘‘(1) entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other ironmaking technologies); and 

‘‘(2) entities using electric arc furnace technologies. 

‘‘(e) METAL, SODA ASH, OR PHOSPHATE PRODUCTION CLASSIFIED

UNDER MORE THAN ONE NAICS CODE.—For purposes of this section, the Administrator shall not aggregate data for the 

beneficiation or other processing (including agglomeration) of metal 

ores, soda ash, or phosphate with subsequent steps in the process 

of metal, soda ash, or phosphate manufacturing. The Administrator 

shall consider the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate to be in separate 

industrial sectors from the metal, soda ash, or phosphate manufacturing sectors. Industrial sectors that beneficiate or otherwise process (including agglomeration) metal ores, soda ash, or phosphate 

shall not receive emission allowance rebates under this section related to the activity of extracting metal ores, soda ash, or phosphate. 

‘‘(f) COMBINED HEAT AND POWER.—For purposes of this section, 

and to achieve the purpose set forth in section 761(b)(2), the Administrator may consider entities to be in different industrial sectors or otherwise take into account the differences among entities 

in the same industrial sector, based upon the extent to which such 

entities use combined heat and power technologies. 

‘‘Subpart 2—Promoting International Reductions 

in Industrial Emissions 

‘‘SEC. 765. INTERNATIONAL NEGOTIATIONS. 

‘‘(a) FINDING.—Congress finds that the purposes of this subpart, 

as set forth in section 761(c), can be most effectively addressed and 

achieved through agreements negotiated between the United States 

and foreign countries. 

‘‘(b) STATEMENT OF POLICY.—It is the policy of the United States 

to work proactively under the United Nations Framework Convention on Climate Change, and in other appropriate fora, to establish 

binding agreements, including sectoral agreements, committing all 

major greenhouse gas-emitting nations to contribute equitably to 

the reduction of global greenhouse gas emissions. 

‘‘(c) NOTIFICATION OF FOREIGN COUNTRIES.— ‘‘(1) IN GENERAL.—As soon as practicable after the date of 

the enactment of this title, the President shall provide a notification on climate change described in paragraph (2) to each 

foreign country the products of which are not exempted under 

section 768(a)(1)(E). 

‘‘(2) NOTIFICATION DESCRIBED.—A notification described in 

this paragraph is a notification that consists of— 


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‘‘(A) a statement of the policy of the United States described in subsection (b); and 

‘‘(B) a declaration— 

‘‘(i) requesting the foreign country to take appropriate measures to limit the greenhouse gas emissions 

of the foreign country; and 

‘‘(ii) indicating that, beginning on January 1, 2020, 

the international reserve requirements of this subpart 

may apply to a covered good. 

‘‘SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT 

TO MULTILATERAL ENVIRONMENTAL NEGOTIATIONS. 

‘‘(a) IN GENERAL.—The negotiating objectives of the United 

States with respect to multilateral environmental negotiations described in this subpart are— 

‘‘(1) to reach an internationally binding agreement in which 

all major greenhouse gas-emitting countries contribute equitably to the reduction of global greenhouse gas emissions; 

‘‘(2)(A) to include in such international agreement provisions 

that recognize and address the competitive imbalances that 

lead to carbon leakage and may be created between parties and 

non-parties to the agreement in domestic and export markets; 

and 

‘‘(B) not to prevent parties to such agreement from addressing the competitive imbalances that lead to carbon leakage and 

may be created by the agreement among parties to the agreement in domestic and export markets ; and 

‘‘(3) to include in such international agreement agreed remedies for any party to the agreement that fails to meet its 

greenhouse gas reduction obligations in the agreement. 

‘‘(b) RULE OF CONSTRUCTION.—Nothing in subsection (a)(2) shall 

be construed to require the United States to alter the provisions of 

section 764 . 

‘‘SEC. 767. PRESIDENTIAL REPORTS AND DETERMINATIONS. 

‘‘(a) REPORT.—Not later than January 1, 2017, and every 2 years 

thereafter, the President shall submit a report to Congress on the 

effectiveness of the distribution of emission allowance rebates 

under subpart 1 in mitigating carbon leakage in eligible industrial 

sectors. Such report shall also include— 

‘‘(1) an assessment, for each eligible industrial sector receiving emission allowance rebates, as to whether, and by how 

much, the per unit cost of production has increased for that 

sector as a result of compliance with section 722 (as determined in a manner consistent with section 764(b)), taking into 

account the provision of the emission allowance rebates to that 

industrial sector and the benefit received by that industrial 

sector from the provision of free allowances to electricity providers pursuant to section 782(a); 

‘‘(2) recommendations on how to better achieve the purposes 

of this subpart, including an assessment of the feasibility and 

usefulness of an international reserve allowance program for 

the eligible industrial sector under section 768; 

‘‘(3) to the extent the President determines that an international reserve allowance program would not be useful for the 

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age is the result of competition in export markets with goods 

produced in countries not implementing similar greenhouse 

gas emission reduction policies, an identification of, and to the 

extent appropriate a description of how the President will implement, alternative actions or programs consistent with the 

purposes of this subpart (and, in such case, the President may 

determine not to apply an international reserve allowance program to the eligible industrial sector under subsection (b)); and 

‘‘(4) an assessment of the amount and duration of assistance, 

including distribution of free allowances, being provided to industrial sectors in other developed countries to mitigate costs 

of compliance with domestic greenhouse gas reduction programs in such countries. 

‘‘(b) PRESIDENTIAL DETERMINATION.— ‘‘(1) IN GENERAL.—If, by January 1, 2018, a multilateral 

agreement consistent with the negotiating objectives set forth 

in section 766 has not entered into force with respect to the 

United States, the President shall establish an international 

reserve allowance program for each eligible industrial sector to 

the extent provided under section 768 unless— 

‘‘(A) the President determines and certifies to the Congress with respect to such eligible industrial sector that 

such program would not be in the national economic interest or environmental interest of the United States; and 

‘‘(B) not later than 90 days after the President transmits 

the certification described in subparagraph (A), a joint resolution is enacted into law that approves the determination of the President described in subparagraph (A). 

‘‘(2) CONTENTS OF JOINT RESOLUTION.—For purposes of this 

subsection, the term ‘joint resolution’ means only a joint resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: ‘That the Congress approves 

the determination of the President under section 768(b)(1)(A) 

of the Clean Air Act transmitted to the Congress on 

llllll.’, the blank space being filled with the appropriate date. 

‘‘(3) CONGRESSIONAL PROCEDURES.—Subsections (c), (d), (e), 

and (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192 

(c), (d), (e), and (f)) shall apply to a joint resolution under this 

subsection to the same extent as such subsections apply to a 

joint resolution under section 152 of such Act. 

‘‘(4) RULE OF CONSTRUCTION.—For purposes of this section 

and section 768, if the President transmits a multilateral 

agreement to Congress (regardless of whether it is transmitted 

as a treaty for ratification by the Senate or another international agreement for implementation by law enacted by the 

Congress) indicating that the agreement is consistent with the 

negotiating objectives set forth in section 766, such agreement 

will be considered to be consistent with such negotiating objectives as of the date on which the Senate ratifies the treaty, or 

legislation is enacted implementing such other agreement, unless the Senate (in the case of ratification) or the implementing 

legislation expressly provides that the multilateral agreement 

shall not be treated as consistent with such negotiating objectives for purposes of this section and section 768. 


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‘‘(c) DETERMINATIONS WITH RESPECT TO ELIGIBLE INDUSTRIAL

SECTORS.—If the President establishes an international reserve allowance program pursuant to subsection (b), then not later than 

June 30, 2018, and every four years thereafter, the President, in 

consultation with the Administrator and other appropriate agencies, shall determine, for each eligible industrial sector, whether or 

not more than 85 percent of United States imports of covered goods 

with respect to that sector are produced or manufactured in countries that have met at least one of the following criteria: 

‘‘(1) The country is a party to an international agreement to 

which the United States is a party that includes a nationally 

enforceable and economy-wide greenhouse gas emissions reduction commitment for that country that is at least as stringent 

as that of the United States. 

‘‘(2) The country is a party to a multilateral or bilateral 

emission reduction agreement for that sector to the which the 

United States is a party. 

‘‘(3) The country has an annual energy or greenhouse gas intensity, as described in section 763(b)(2)(A)(ii), for the sector 

that is equal to or less than the energy or greenhouse gas intensity for such industrial sector in the United States in the 

most recent calendar year for which data are available. 

‘‘(d) EFFECT OF PRESIDENTIAL DETERMINATION.— 

‘‘(1) REQUIRED ACTIONS.—If the President makes a determination under subsection (c) with respect to an eligible industrial sector that 85 percent or less of United States imports of 

covered goods with respect to the sector are produced or manufactured in countries that have met one or more of the criteria 

in subsection (c), then the President shall, not later than June 

30, 2018, and every four years thereafter— 

‘‘(A) assess the extent to which the emission allowance 

rebates provided pursuant to subpart 1 and the benefit received by that industrial sector from the provision of free 

allowances to electricity providers pursuant to section 

782(a) have mitigated or addressed, or could mitigate or 

address, carbon leakage in that sector; 

‘‘(B) assess the extent to which an international reserve 

allowance program has mitigated or addressed, or could 

mitigate or address, carbon leakage in that sector; and 

‘‘(C) with respect to that sector— 

‘‘(i) modify the percentage by which direct and indirect carbon factors will be multiplied under section 

764(a)(1)(B); and 

‘‘(ii) apply or continue to apply an international reserve allowance program under section 768 with respect to imports of covered goods with respect to that 

sector. 

‘‘(2) PROHIBITED ACTIONS.—If the President makes a determination under subsection (c) with respect to an eligible industrial sector that more than 85 percent of United States imports 

of covered goods with respect to the sector are produced or 

manufactured in countries that have met one or more of the 

criteria in subsection (c), then the President may not apply or 

continue to apply an international reserve allowance program 


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under section 768 with respect to imports of covered goods with 

respect to that sector. 

‘‘(e) REPORT TO CONGRESS.—Not later than June 30, 2018, and 

every four years thereafter, the President shall transmit to the 

Congress a report providing notice of any determination made 

under subsection (c), explaining the reasons for such determination, 

and identifying the actions taken by the President under subsection (d). 

‘‘SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM. 

‘‘(a) ESTABLISHMENT.— ‘‘(1) IN GENERAL.—The Administrator, with the concurrence 

of Commissioner responsible for U.S. Customs and Border Protection, shall issue regulations— 

‘‘(A) establishing an international reserve allowance program for the sale, exchange, purchase, transfer, and banking of international reserve allowances for covered goods 

with respect to the eligible industrial sector; 

‘‘(B) ensuring that the price for purchasing the international reserve allowances from the United States on a 

particular day is equivalent to the auction clearing price 

for emission allowances under section 722 for the most recent emission allowance auction; 

‘‘(C) establishing a general methodology for calculating 

the quantity of international reserve allowances that a 

United States importer of any covered good must submit; 

‘‘(D) requiring the submission of appropriate amounts of 

such allowances for covered goods with respect to the eligible industrial sector that enter the customs territory of the 

United States; 

‘‘(E) exempting from the requirements of subparagraph 

(D) such products that are the origin of— 

‘‘(i) any country determined to meet any of the 

standards provided in section 767(c); 

‘‘(ii) any foreign country that the United Nations has 

identified as among the least developed of developing 

countries; or 

‘‘(iii) any foreign country that the President has determined to be responsible for less than 0.5 percent of 

total global greenhouse gas emissions and less than 5 

percent of United States imports of covered goods with 

respect to the eligible industrial sector; 

‘‘(F) specifying the procedures that U.S. Customs and 

Border Protection will apply for the declaration and entry 

of covered goods with respect to the eligible industrial sector into the customs territory of the United States; and 

‘‘(G) establishing procedures that prevent circumvention 

of the international reserve allowance requirement for covered goods with respect to the eligible industrial sector 

that are manufactured or processed in more than one foreign country. 

‘‘(2) PURPOSE OF PROGRAM.—The Administrator shall establish the program under paragraph (1) consistent with international agreements to which the United States is a party, in 

a manner that minimizes the likelihood of carbon leakage as 

a result of differences between— 


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‘‘(A) the direct and indirect costs of complying with section 722; and 

‘‘(B) the direct and indirect costs, if any, of complying in 

other countries with greenhouse gas regulatory programs, 

requirements, export tariffs, or other measures adopted or 

imposed to reduce greenhouse gas emissions. 

‘‘(b) EMISSION ALLOWANCE REBATES.—In establishing a general 

methodology for purposes of subsection (a)(1)(C), the Administrator 

shall include an adjustment to the quantity of international reserve 

allowances based on the value of emission allowance rebates distributed under subpart 1 and the benefit received by the eligible 

industrial sector concerned from the provision of free allowances to 

electricity providers pursuant to section 782(a) and may, if appropriate, determine that the quantity of international reserve allowances should be reduced as low as to zero. 

‘‘(c) EFFECTIVE DATE.—The international reserve allowance program may not apply to imports of covered goods entering the customs territory of the United States before January 1, 2020. 

‘‘(d) COVERED ENTITIES.—International reserve allowances may 

not be used by covered entities to comply with section 722. 

‘‘SEC. 769. IRON AND STEEL SECTOR. 

‘‘For purposes of this subpart, the Administrator shall consider to 

be in the same eligible industrial sector— 

‘‘(1) entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other ironmaking technologies); and 

‘‘(2) entities using electric arc furnace technologies.’’. 

Page 955, lines 15 through 19, amend section 422 to read as follows: 

SEC. 422. INCREASED FUNDING FOR ENERGY WORKER TRAINING PROGRAM. 

(a) AUTHORIZATION.—Section 171(e)(8) of the Workforce Investment Act of 1998 (29 U.S.C. 2916(e)(8)) is amended by striking 

‘‘$125,000,000’’ and inserting ‘‘$150,000,000’’. 

(b) ESTABLISHMENT OF FUND.—There is hereby established in the 

Treasury a separate account that shall be known as the Energy Efficiency and Renewable Energy Worker Training Fund. 

(c) AVAILABILITY OF AMOUNTS.—Subject to subtitle F of title IV, 

all amounts deposited into the Energy Efficiency and Renewable 

Energy Worker Training Fund shall be available to the Secretary 

to carry out section 171(e)(8) of the Workforce Investment Act of 

1998 (29 U.S.C. 2916(e)(8)) subject to further appropriation. 

Page 955, after line 19, insert the following new sections: 

SEC. 423. DEVELOPMENT OF INFORMATION AND RESOURCES CLEARINGHOUSE FOR VOCATIONAL EDUCATION AND JOB 

TRAINING IN RENEWABLE ENERGY SECTORS. 

(a) DEVELOPMENT OF CLEARINGHOUSE.—Not later than 18 

months after the date of enactment of this Act, the Secretary of 

Labor, in collaboration with the Secretary of Energy and the Secretary of Education, shall develop an internet based information 

and resources clearinghouse to aid career and technical education 

and job training programs for the renewable energy sectors. In establishing the clearinghouse, the Secretary shall— 


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(1) collect and provide information that addresses the consequences of rapid changes in technology and regional disparities for renewable energy training programs and provides best 

practices for training and education in light of such changes 

and disparities; 

(2) place an emphasis on facilitating collaboration between 

the renewable energy industry and job training programs and 

on identifying industry and technological trends and best practices, to better help job training programs maintain quality 

and relevance; and 

(3) place an emphasis on assisting programs that cater to 

high-demand middle-skill, trades, manufacturing, contracting, 

and consulting careers. 

(b) SOLICITATION AND CONSULTATION.—In developing the clearinghouse pursuant to subsection (a), the Secretary shall solicit information and expertise from businesses and organizations in the 

renewable energy sector and from institutions of higher education, 

career and technical schools, and community colleges that provide 

training in the renewable energy sectors. The Secretary shall solicit 

a comprehensive peer review of the clearinghouse by such entities 

not less than once every 2 years. Nothing in this subsection should 

be interpreted to require the divulgence of proprietary or competitive information. 

(c) CONTENTS OF CLEARINGHOUSE.— (1) SEPARATE SECTION FOR EACH RENEWABLE ENERGY SEC- TOR.—The clearinghouse shall contain separate sections developed for each of the following renewable energy sectors: 

(A) Solar energy systems. 

(B) Wind energy systems. 

(C) Energy transmission systems. 

(D) Geothermal systems of energy and heating. 

(E) Energy efficiency technical training. 

(2) ADDITIONAL REQUIREMENTS.—In addition to the information required in subsection (a), each section of the clearinghouse shall include information on basic environmental science 

and processes needed to understand renewable energy systems, 

Federal government and industry resources, and points of contact to aid institutions in the development of placement programs for apprenticeships and post graduation opportunities, 

and information and tips about a green workplace, energy efficiency, and relevant environmental topics and information on 

available industry recognized certifications in each area. 

(d) DISSEMINATION.—The clearinghouse shall be made available 

via the Internet to the general public. Notice of the completed 

clearinghouse and any major revisions thereto shall also be provided— 

(1) to each Member of Congress; and 

(2) on the websites of the Departments of Education, Energy, 

and Labor. 

(e) REVISION.—The Secretary of Labor shall revise and update 

the clearinghouse on a regular basis to ensure its relevance. 

SEC. 424. MONITORING PROGRAM EFFECTIVENESS. 

The Secretary of Labor shall monitor the potential growth of affected and displaced workers to ensure that the necessary funding 

continues to support the number of workers affected. 


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SEC. 424A. GREEN CONSTRUCTION CAREERS DEMONSTRATION 

PROJECT. 

(a) ESTABLISHMENT AND AUTHORITY.—The Secretary of Labor, in 

consultation with the Secretary of Energy, shall, not later than 180 

days after the enactment of this Act, establish a Green Construction Careers demonstration project by rules, regulations, and guidance in accordance with the provisions of this section. The purpose 

of the demonstration project shall be to promote middle class careers and quality employment practices in the green construction 

sector among targeted workers and to advance efficiency and performance on construction projects related to this Act. In order to 

advance these purposes, the Secretary shall identify projects, including residential retrofitting projects, funded directly by or assisted in whole or in part by or through the Federal Government 

pursuant to this Act or by any other entity established in accordance with this Act, to which all of the following shall apply. 

(b) REQUIREMENTS.—The Secretaries may establish such terms 

and conditions for the demonstration projects as the Secretaries determine are necessary to meet the purposes of subsection (a), including establishing minimum proportions of hours to be worked by 

targeted workers on such projects. The Secretaries may require the 

contractors and subcontractors performing construction services on 

the project to comply with the terms and conditions as a condition 

of receiving funding or assistance from the Federal Government 

under this Act. 

(c) EVALUATION.—The Secretaries shall evaluate the demonstration projects against the purposes of this section at the end of 3 

years from initiation of the demonstration project. If the Secretaries determine that the demonstration projects have been successful, the Secretaries may identify further projects to which of 

the provisions of this section shall apply. 

(d) GAO REPORT.—The Comptroller General shall prepare and 

submit a report to the Committee on Health, Education, Labor and 

Pensions and the Committee on Energy and Natural Resources of 

the Senate and the Committee on Education and Labor and the 

Committee on Energy and Commerce of the House of Representatives not later than 5 years after the date of enactment of this Act, 

which shall advise the committees of the results of the demonstration projects and make appropriate recommendations. 

(e) DEFINITION AND DESIGNATION OF TARGETED WORKERS.—As 

used in this section, the term ‘‘targeted worker’’ means an individual who resides in the same labor market area (as defined in 

section 101(18) of the Workforce Investment Act of 1998 (29 U.S.C. 

2801(18))) as the project and who— 

(1) is a member of a targeted group, within the meaning of 

section 51 of the Internal Revenue Code of 1986, other than an 

individual described in subsection (d)(1)(C) of such section; 

(2)(A) resides in a census tract in which not less than 20 percent of the households have incomes below the Federal poverty 

guidelines; or 

(B) is a member of a family that received a total family income that, during the 2-year period prior to employment on the 

project or admission to the pre-apprenticeship program, did not 

exceed 200 percent of the Federal poverty guidelines (exclusive 

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ments described in section 101(25)(A) of the Workforce Investment Act (29 U.S.C. 2801(25)(A)), and old-age and survivors insurance benefits received under section 202 of the Social Security Act (42 U.S.C. 402); or 

(3) is a displaced homemaker, as such term is defined in section 3(10) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(10)). 

(f) QUALIFIED PRE-APPRENTICESHIP PROGRAM.—A qualified preapprenticeship program is a pre-apprenticeship program that has 

demonstrated an ability to recruit, train, and prepare for admission 

to apprenticeship programs individuals who are targeted workers. 

(g) QUALIFIED APPRENTICESHIP AND OTHER TRAINING PRO- GRAMS.— 

(1) PARTICIPATION BY EACH CONTRACTOR REQUIRED.—Each 

contractor and subcontractor that seeks to provide construction 

services on projects identified by the Secretaries pursuant to 

subsection (a) shall submit adequate assurances with its bid or 

proposal that it participates in a qualified apprenticeship or 

other training program, with a written arrangement with a 

qualified pre-apprenticeship program, for each craft or trade 

classification of worker that it intends to employ to perform 

work on the project. 

(2) DEFINITION OF QUALIFIED APPRENTICE SHIP OR OTHER

TRAINING PROGRAM.— (A) IN GENERAL.—For purposes of this section, the term 

‘‘qualified apprenticeship or other training program’’ 

means an apprenticeship or other training program that 

qualifies as an employee welfare benefit plan, as defined 

in section 3(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(1)). 

(B) CERTIFICATION OF OTHER PROGRAMS IN CERTAIN LOCALITIES.—In the event that the Secretary of Labor certifies that a qualified apprenticeship or other training program (as defined in subparagraph (A)) for a craft or trade 

classification of workers that a prospective contractor or 

subcontractor intends to employ, is not operated in the locality where the project will be performed, an apprenticeship or other training program that is not an employee 

welfare benefit plan (as defined in such section) may be 

certified by the Secretary as a qualified apprenticeship or 

other training program provided it is registered with the 

Office of Apprenticeship of the Department of Labor, or a 

State apprenticeship agency recognized by the Office of 

Apprenticeship for Federal purposes. 

(h) FACILITATING COMPLIANCE.—The Secretary may require Federal contracting agencies, recipients of Federal assistance, and any 

other entity established in accordance with this Act to require contractors to enter into an agreement in a manner comparable with 

the standards set forth in sections 3 and 4 of Executive Order 

13502 in order to achieve the purposes of this section, including 

any requirements established by subsection (b). 

(i) LIMITATION.—The requirements of this section shall not apply 

to any project funded under this Act in American Samoa, Guam, 

the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, or the United States Virgin Islands, unless 


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participation is requested by the governor of such territories within 

1 year of the promulgation of rules under this Act. 

Page 1007, line 23, through page 1008, line 14, strike paragraph 

(3). 

Page 1019, line 23, through page 1020, line 6, amend subparagraph (B) to read as follows: 

‘‘(B) Without regard to section 553 of title 5 of such 

Code, the Administrator may by rule promulgate as final, 

to be effective until no later than two years after the date 

of the enactment of the American Clean Energy and Security Act of 2009, any procedures that are substantially the 

same as the procedures governing the Supplemental Nutrition Assistance Program in section 273.2, 273.12, or 273.15 

of title 7, Code of Federal Regulations. 

Page 1025, line 1, through page 1026, line 11, amend section 432 

to read as follows: 

SEC. 432. MODIFICATION OF EARNED INCOME CREDIT AMOUNT FOR 

INDIVIDUALS WITH NO QUALIFYING CHILDREN. 

(a) IN GENERAL.—Subsection (b) of section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following 

new paragraph: 

‘‘(4) SPECIAL RULE FOR INDIVIDUALS WITH NO QUALIFYING

CHILDREN WHO ARE AFFECTED BY THE AMERICAN CLEAN ENERGY

AND SECURITY ACT OF 2009.— 

‘‘(A) IN GENERAL.—In the case of any household which 

the Secretary determines experienced a reduction in purchasing power as a result of the provisions of, or amendments made by, the American Clean Energy and Security 

Act of 2009 (determined without regard to this paragraph 

and section 2201 of the Social Security Act)— 

‘‘(i) INCREASE IN CREDIT PERCENTAGE AND PHASEOUT

PERCENTAGE.—The table contained in paragraph (1)(A) 

shall be applied by substituting ‘15.3’ for ‘7.65’. 

‘‘(ii) INCREASE IN BEGINNING PHASEOUT AMOUNT.— 

The table contained in paragraph (2)(A) shall be applied by substituting ‘$11,640’ for ‘$5,280’. 

‘‘(B) INFLATION ADJUSTMENT.— 

‘‘(i) IN GENERAL.—In the case of any taxable year beginning after 2012, the $11,640 amount in subparagraph (A)(ii) shall be increased by an amount equal 

to— 

‘‘(I) such dollar amount, multiplied by 

‘‘(II) the cost of living adjustment determined 

under section 1(f)(3) for the calendar year in 

which the taxable year begins determined by substituting ‘calendar year 2011’ for ‘calendar year 

1992’ in subparagraph (B) thereof. 

‘‘(ii) ROUNDING.—Subparagraph (A) of subsection 

(j)(2) shall apply after taking into account any increase 

under clause (i) in the same manner as if such increase were under paragraph (1) of subsection (j). 

‘‘(iii) COORDINATION WITH OTHER INFLATION ADJUSTMENTS.—Paragraph (1) of subsection (j) shall not apply 


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to the dollar amount substituted under subparagraph 

(A)(ii).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall 

apply to taxable years beginning after December 31, 2011. 

Page 1033, lines 7 and 8, strike ‘‘from the International Clean 

Technology Account’’ and insert ‘‘under this subtitle’’. 

Page 1033, lines 11 through 13, strike ‘‘distributions from the 

International Clean Technology Account’’ and insert ‘‘the program 

established under this subtitle’’. 

Page 1033, lines 14 through 18, strike paragraph (7) (and redesignate the subsequent paragraphs accordingly). 

Page 1034, lines 11 and 12, strike ‘‘from the International Clean 

Technology Account’’ and insert ‘‘allocated under section 782(o) of 

the Clean Air Act (as added by section 321 of this Act) for distribution pursuant to this subtitle’’. 

Page 1034, lines 14 and 15, strike ‘‘International Clean Technology Account’’ and insert ‘‘program established under this subtitle’’. 

Page 1035, line 7, strike ‘‘from the International Clean Technology Account’’ and insert ‘‘pursuant to this subtitle’’. 

Page 1039, lines 5 through 7, strike ‘‘, from the International 

Clean Technology Account for qualifying activities that take place 

in eligible countries’’ and insert ‘‘allocated for such purpose under 

section 782(o) of the Clean Air Act (as added by section 321 of this 

Act) for qualifying activities that take place in eligible countries, in 

accordance with the requirements of this subtitle’’. 

Page 1039, line 8, through page 1040, line 13, amend subsection 

(b) to read as follows: 

(b) DEFINITION.—For the purposes of this section the term ‘‘clean 

technology’’ means any technology or service related to the qualifying activities identified in section 445. 

Page 1040, lines 18 and 19, strike ‘‘from the International Clean 

Technology Account’’ and insert ‘‘under this subtitle’’. 

Page 1046, lines 11 through 14, amend subsection (f) to read as 

follows: 

(f) ANNUAL REPORTS.—Not later than March 1, 2012, and annually thereafter, the President shall submit to the appropriate congressional committees a report on the assistance provided under 

this subtitle during the prior fiscal year. Such report shall include— 

(1) a description of the amount and value of allowances distributed during the prior fiscal year; 

(2) a description of each activity that received assistance during the prior fiscal year, and a description of the anticipated 

and actual outcomes; 

(3) an assessment of any adverse effects to human health, 

safety, or welfare, the environment, or natural resources as a 

result of activities supported under this subtitle; 

(4) an assessment of the success of the assistance provided 

under this subtitle to improving the technical and institutional 

capacity to implement substantial emissions reductions; 


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(5) an estimate of the greenhouse gas emissions reductions, 

sequestration, or avoidance achieved by assistance provided 

under this subtitle during the prior fiscal year; and 

(6) an assessment whether any funds expended for the benefit of any qualifying activity undermined the protection of intellectual property rights for clean technology, as formulated in 

the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay 

Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable 

intellectual property provisions of bilateral trade agreements. 

Page 1046, after line 14, insert the following new subsection: 

(g) NOT ELIGIBLE FOR OFFSET CREDIT.—Activities that receive 

support under this subtitle shall not be issued offset credits for the 

greenhouse gas emissions reductions or avoidance, or greenhouse 

gas sequestration, produced by such activities. 

Page 1113, after line 11, insert the following new paragraph: 

(5) RESEARCH ON HURRICANES.—The authorized uses of allowances under this section shall include establishment of 

projects or programs to conduct research and monitoring on 

the effect of ongoing climate change on the frequency and intensity of hurricanes. 

Page 1130, line 22, strike ‘‘There’’ and insert ‘‘Subject to subtitle 

F of title IV, there’’. 

Page 1131, line 1, strike ‘‘All’’ and insert ‘‘Subject to subtitle F 

of title IV, all’’. 

Page 1161, line 24, strike ‘‘There’’ and insert ‘‘Subject to subtitle 

F of title IV, there’’. 

Page 1162, line 4, strike ‘‘There’’ and insert ‘‘Subject to subtitle 

F of title IV, there’’. 

Page 1162, lines 10 through 12, strike ‘‘Such appropriations’’ and 

all that follows through ‘‘Clean Air Act.’’. 

Page 1165, line 2, insert ‘‘and in accordance with the Indian SelfDetermination and Educational Assistance Act (25 U.S.C. 450(f)’’ 

after ‘‘Wildlife Service’’. 

Page 1166, lines 3 through 5, strike ‘‘Such appropriations’’ and 

all that follows through ‘‘782(m)’’. 

Page 1169, line 2, before the period, insert ‘‘and for natural resource adaptation activities on State and private forest lands carried out under the Cooperative Forestry Assistance Act of 1978’’. 

Page 1201, after line 6, add the following new subtitle: 

Subtitle F—Deficit Neutral Budgetary 

Treatment 

SEC. 496. DEFICIT NEUTRALITY. 

(a) FUNDS ESTABLISHED.—Funds established under sections 422, 

467, and 480 of this Act are to be treated as separate accounts in 

the Treasury and shall be known as ‘‘the Funds’’. 

(b) AVAILABILITY.—Funds appropriated or made available pursuant to sections 422(b), 467(b), and 480(b)(2) are only available for 

the purposes set forth under this Act. Receipts in the Funds and 


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appropriations therefrom shall not be available and are precluded 

from obligation for any other purpose. 

(c) ESTIMATION OF BUDGETARY IMPACT.—For the purposes of estimating the revenue and spending effects of this Act; 

(1) the revenue assumed to be deposited into the Funds established under sections 422, 467, and 480, shall be attributed 

to this Act; and 

(2) the authorization or availability of appropriations from 

the Funds shall be treated as new direct spending and attributed to this Act. 

(d) BUDGETARY TREATMENT.—For the purposes of section 257 of 

the Balanced Budget and Emergency Deficit Control Act of 1985, 

the Funds, and amounts subsequently appropriated or made available for the purposes for which such Funds were established, shall 

be deemed to be included on the list of appropriations referenced 

under section 250(c)(17) of that Act. Such appropriations from each 

Fund shall not be in excess of the amounts deposited into the respective Fund in the previous year. 

At the end of the bill, add the following new title: 

TITLE V—AGRICULTURAL AND 

FORESTRY RELATED OFFSETS 

Subtitle A—Offset Credit Program From 

Domestic Agricultural and Forestry 

Sources 

SEC. 501. DEFINITIONS. 

(a) IN GENERAL.—In this title: 

(1) ADDITIONAL.—The term ‘‘additional’’, when used with respect to reductions or avoidance of greenhouse gas emissions, 

or to sequestration of greenhouse gases, means reductions, 

avoidance, or sequestration that result in a lower level of net 

greenhouse gas emissions or atmospheric concentrations than 

would occur in the absence of an offset project. 

(2) ADDITIONALITY.—The term ‘‘additionality’’ means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional. 

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

Administrator of the Environmental Protection Agency. 

(4) ADVISORY COMMITTEE.—The term ‘‘Advisory Committee’’ 

means the USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee established under section 

1245(f) of the Food Security Act of 1985 (16 U.S.C. 3845). 

(5) GREENHOUSE GAS.—The term ‘‘greenhouse gas’’ means 

any of the following: 

(A) Carbon dioxide. 

(B) Methane. 

(C) Nitrous oxide. 

(D) Sulfur hexafluoride. 

(E) Hydrofluorocarbons from a chemical manufacturing 

process at an industrial stationary source. 


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(F) Any perfluorocarbon. 

(G) Nitrogen trifluoride. 

(H) Any other anthropogenic gas designated as a greenhouse gas by the Administrator. 

(6) LEAKAGE.—The term ‘‘leakage’’ means a significant and 

quantifiable increase in greenhouse gas emissions, or a significant and quantifiable decrease in sequestration, which is 

caused by an offset practice and occurs outside the boundaries 

of the offset practice. 

(7) OFFSET CREDIT.—The term ‘‘offset credit’’ means a 

tradeable compliance instrument that— 

(A) represents the reduction, avoidance, or sequestration 

of 1 ton of carbon dioxide equivalent; and 

(B) is issued pursuant to this title. 

(8) OFFSET PRACTICE.—The term ‘‘offset practice’’ means an 

activity that reduces, avoids, or sequesters greenhouse gas 

emissions, and for which offset credits may be issued pursuant 

to this title. 

(9) OFFSET PRODUCER.—The term ‘‘offset producer’’ means an 

owner, operator, landlord, tenant, or sharecropper who has or 

shares responsibility for ensuring that an offset practice is established and maintained during the crediting period for purposes of an offset credit. 

(10) OFFSET PROJECT.—The term ‘‘offset project’’ means a 

practice or set of practices that reduce or avoid greenhouse gas 

emissions, or sequester greenhouse gases as implemented by 

an offset producer. 

(11) OFFSET PROJECT DEVELOPER.—The term ‘‘offset project 

developer’’ means the offset producer or designee of the offset 

producer. 

(12) PRACTICE TYPE.—The term ‘‘practice type’’ means a discrete category of offset practices for which the Secretary develops a standardized methodology to accurately estimate the 

amount of greenhouse gas emissions reduced or avoided or 

greenhouse gases sequestered. 

(13) REVERSAL.—The term ‘‘reversal’’ means an intentional 

or unintentional loss of sequestered greenhouse gases to the atmosphere. 

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

of Agriculture. 

(15) SEQUESTRATION AND SEQUESTERED.—The terms ‘‘sequestered’’ and ‘‘sequestration’’ mean the separation, isolation, or 

removal of greenhouse gases from the atmosphere, as determined by the Secretary. The terms include biological sequestration, but do not include ocean fertilization techniques. 

(16) TERM OFFSET CREDIT.—The term ‘‘term offset credit’’ 

means a compliance instrument authorized under section 

504(d). 

(b) AGRICULTURAL AND FORESTRY EXCEPTION TO DEFINITION OF

CAPPED SECTOR.—For purposes of this title and title III of this Act, 

and amendments made by such titles, the term ‘‘capped sector’’ 

means a sector of economic activity that directly emits capped 

emissions, including the industrial sector, the electricity generation 

sector, the transportation sector, and the residential and commerVerDate Nov 24 2008 08:34 Jun 26, 2009 Jkt 079008 PO 00000 Frm 00108 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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cial sectors (to the extent they burn oil or natural gas), but not including the agricultural or forestry sectors. 

SEC. 502. ESTABLISHMENT OF OFFSET CREDIT PROGRAM FROM DOMESTIC AGRICULTURAL AND FORESTRY SOURCES. 

(a) ESTABLISHMENT.—Not later than 1 year after the date of enactment of this title, the Secretary shall establish a program governing the generation of offset credits from domestic agricultural 

and forestry sources. 

(b) REQUIREMENTS.—The program described in subsection (a) 

shall— 

(1) ensure that offset credits represent verifiable and additional greenhouse gas emission reductions or avoidance, or increases in sequestration; and 

(2) ensure that offset credits issued for sequestration offset 

projects are only issued for greenhouse gas reductions that result in a permanent net reduction in atmospheric greenhouse 

gases. 

(c) DUTIES OF SECRETARY.—In addition to the duties described in 

subsection (a) and section 1245 of the Food Security Act of 1985 (16 

U.S.C. 3845), the Secretary shall, with respect to practices relating 

to offset credits from agricultural and forestry sources— 

(1) establish by rule methodologies by practice types for 

quantifying greenhouse gas benefits; 

(2) establish by rule methodologies for each practice type for 

establishing activity baselines and determining additionality; 

(3) establish by rule methodologies by practice types for accounting for and mitigating potential leakage; 

(4) establish rules to account for and address reversals; 

(5) establish rules to require third-party verification; 

(6) provide technical assistance to offset project developers 

using funds appropriated to the Conservation Operations account; 

(7) establish rules for approval of offset project plans; 

(8) establish rules for certification of implementation of offset 

project plans; 

(9) establish by rule requirements for reporting and record 

keeping; and 

(10) conduct audits. 

SEC. 503. LIST OF ELIGIBLE DOMESTIC AGRICULTURAL AND FORESTRY OFFSET PRACTICE TYPES. 

(a) LIST REQUIRED.— 

(1) PREPARATION AND PUBLICATION.—Not later than 1 year 

after the date of enactment of this title, the Secretary shall 

prepare and publish in the Federal Register a list of domestic 

agricultural and forestry practice types that are eligible to generate offset credits under this title because the practices avoid 

or reduce greenhouse gas emissions or sequester greenhouse 

gases. 

(2) RECOMMENDATIONS.—In preparing the list under paragraph (1), the Secretary shall take into consideration the recommendations of the Advisory Committee. 

(b) INITIAL LIST.—At a minimum, the list prepared under this 

section shall include those practices that avoid or reduce greenhouse gas emissions or sequester greenhouse gases, such as— 


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(1) agricultural, grassland, and rangeland sequestration and 

management practices, including— 

(A) altered tillage practices; 

(B) winter cover cropping, continuous cropping, and 

other means to increase biomass returned to soil in lieu of 

planting followed by fallowing; 

(C) reduction of nitrogen fertilizer use or increase in nitrogen use efficiency; 

(D) reduction in the frequency and duration of flooding 

of rice paddies; 

(E) reduction in carbon emissions from organic soils; 

(F) reduction in greenhouse gas emissions from manure 

and effluent; and 

(G) reduction in greenhouse gas emissions due to 

changes in animal management practices, including dietary modifications; 

(2) changes in carbon stocks attributed to land use change 

and forestry activities, including— 

(A) afforestation or reforestation of acreage that is not 

forested; 

(B) forest management resulting in an increase in forest 

carbon stores including but not limited to harvested wood 

products; 

(C) management of peatland or wetland; 

(D) conservation of grassland and forested land; 

(E) improved forest management, including accounting 

for carbon stored in wood products; 

(F) reduced deforestation or avoided forest conversion; 

(G) urban tree-planting and maintenance; 

(H) agroforestry; and 

(I) adaptation of plant traits or new technologies that increase sequestration by forests; and 

(3) manure management and disposal, including— 

(A) waste aeration; 

(B) biogas capture and combustion; and 

(C) application to fields as a substitute for commercial 

fertilizer. 

(c) ADDITIONS AND REVISIONS TO LIST.— (1) PERIODIC REVISION.—Not later than 2 years after the date 

of enactment of this title, and every 2 years thereafter, the 

Secretary, after public notice and opportunity for comment, 

shall add to and revise the types of offset practices to the list 

established under subsection (a) if those types of practices 

meet the standards for environmental integrity that are consistent with the purposes of this title. 

(2) CONSIDERATION OF PETITIONS.—The Secretary shall— 

(A) consider petitions to add types of offset practices to 

the list established under subsection (a); and 

(B) add those types of offset practices to the list if the 

types of offset practices meet standards for environmental 

integrity consistent with the purposes of this title. 

(3) TIME FOR CONSIDERATION OF PETITIONS.—Not later than 

1 year after the receipt of a petition under paragraph (2), the 

Secretary shall make a decision to either grant or deny the petition and publish a written explanation of the reasons for the 


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Secretary’s decision. The Secretary may not deny a petition 

under this subsection on the basis of inadequate Department 

of Agriculture resources at the time of the review. 

SEC. 504. REQUIREMENTS FOR DOMESTIC AGRICULTURAL AND FORESTRY PRACTICES. 

(a) METHODOLOGIES.— (1) IN GENERAL; CONDITION.—In promulgating regulations 

under section 502, the Secretary shall establish methodologies 

for domestic agricultural and forestry practices listed under 

section 503, if the Secretary determines that methodologies can 

be established for such practices that meet each of the requirements of this section. The Secretary shall only issue offset 

credits under this title pursuant to promulgated methodologies 

applicable to the offset practice that avoided or reduced greenhouse gas emissions or sequestered greenhouse gases. 

(2) SPECIFIED METHODOLOGIES.—The Secretary shall establish the following methodologies under this section: 

(A) ACTIVITY BASELINES.—A standardized methodology 

for establishing activity baselines for an offset practice of 

that type. The Secretary shall set activity baselines to reflect a conservative estimate of performance or activities 

for the relevant type of practice (excluding changes in performance or activities due to the availability of offset credits) such that the baseline provides an adequate margin of 

safety to ensure the environmental integrity of offset credits calculated in reference to such baseline. 

(B) ADDITIONALITY.—A standardized methodology for determining the additionality of greenhouse gas emissions 

reduction or avoidance, or greenhouse gas sequestration, 

achieved by an offset practice of that type. Such methodology shall ensure, at a minimum, that any greenhouse gas 

emission reduction or avoidance, or any greenhouse gas sequestration, is considered additional only to the extent 

that it results from activities that— 

(i) are not required by existing government regulations, as determined by the Secretary; 

(ii) were not commenced prior to January 1, 2009, 

except in the case of— 

(I) offset project activities that commenced after 

January 1, 2001, and were registered as of the 

date of enactment of this title under an offset program with respect to which an affirmative determination has been made under section 740 of the 

Clean Air Act; or 

(II) activities that are readily reversible, with 

respect to which the Secretary may set an alternative earlier date under this subparagraph that 

is not earlier than January 1, 2001, where the 

Secretary determines that setting such an alternative date may produce an environmental benefit 

by removing an incentive to cease and then reinitiate activities that began prior to January 1, 

2009; and 

(iii) exceed the applicable activity baseline established under paragraph (2). 


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(C) QUANTIFICATION METHODS.—A standardized methodology for determining the extent to which greenhouse gas 

emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset practice of that type exceeded a relevant activity baseline, including methods for 

monitoring and accounting for uncertainty. 

(D) LEAKAGE.—A standardized methodology for accounting for and mitigating potential leakage, if any, from an 

offset practice of that type, taking uncertainty into account, excluding international indirect land use changes 

unless a positive determination is made under section 

211(o)(13)(C)(iii) of the Clean Air Act. 

(b) SPECIAL CONSIDERATIONS.— (1) EXISTING OFFSET PRACTICES.—In establishing the methodologies under subsection (a), the Secretary shall give due 

consideration to methodologies for offset practices existing as of 

the date of the enactment of this title. 

(2) CERTAIN FACTORS.—As part of the methodologies established under subsection (a), the Secretary shall establish a formula that takes into account the components of the practice, 

the characteristics of the land on which the practice is applied, 

the crop produced, and such other factors as determined appropriate by the Secretary. 

(c) ACCOUNTING FOR REVERSALS.— (1) IN GENERAL.—Except as provided in subsection (d) with 

respect to issuance of a term offset credit, for each type of practice listed under section 503, the Secretary shall establish requirements to account for and address reversals, including— 

(A) a requirement to report any reversal with respect to 

an offset practice for which offset credits have been issued 

under this title; 

(B) provisions to require emission allowances or offset 

credits to be held in amounts to fully compensate for 

greenhouse gas emissions attributable to reversals, and to 

assign responsibility for holding such emission allowances; 

and 

(C) any other provisions that the Secretary determines 

to be necessary to account for and address reversals. 

(2) MECHANISMS.— (A) IN GENERAL.—The Secretary shall prescribe mechanisms to ensure that any sequestration of greenhouse 

gases, with respect to which an offset credit is issued 

under this title, results in a permanent net increase in sequestration of greenhouse gases, and that full account is 

taken of any actual or potential reversal of such sequestration, with an adequate margin of safety. 

(B) SPECIFIC MECHANISMS.—The Secretary shall make 

available one or more of the following mechanisms to meet 

the requirements of this paragraph: 

(i) An offsets reserve, pursuant to paragraph (3). 

(ii) Insurance that provides for purchase and provision to the Secretary for retirement of a quantity of 

offset credits or emission allowances equal in number 

to the tons of carbon dioxide equivalents of greenhouse 

gas emissions released due to reversal. 


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(iii) Another mechanism if the Secretary determines 

it is necessary to satisfy the requirements of this title, 

taking into account whether the reversal was intentional or unintentional. 

(3) OFFSETS RESERVE.— (A) IN GENERAL.—An offsets reserve referred to in paragraph (2)(B)(i) is a program under which, before issuance 

of offset credits under this title, the Secretary shall— 

(i) subtract and reserve from the quantity to be 

issued a quantity of offset credits based on the risk of 

reversal; 

(ii) hold those reserved offset credits in the offsets 

reserve; and 

(iii) register the holding of the reserved offset credits 

in an offset registry. 

(B) PRACTICE REVERSAL.— (i) IN GENERAL.—If a reversal has occurred with respect to an offset practice within an offset project, for 

which offset credits are reserved under this paragraph, the Secretary shall retire offset credits from the 

offsets reserve to fully account for the tons of carbon 

dioxide equivalent that are no longer sequestered. 

(ii) INTENTIONAL REVERSALS.—If the Secretary determines that a reversal was intentional, the offset practice developer for the relevant offset practice shall 

place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to the number of reserve offset 

credits that were retired pursuant to clause (i). 

(iii) UNINTENTIONAL REVERSALS.—If the Secretary 

determines that a reversal was unintentional, the offset project developer for the relevant offset project 

shall place into the offsets reserve a quantity of offset 

credits, or combination of offset credits and emission 

allowances, equal in number to half the number of offset credits that were reserved for that offset project, or 

half the number of reserve offset credits that were 

canceled due to the reversal pursuant to clause (i), 

whichever is less, except that the Secretary may lower 

this amount based on undue hardship in the event of 

a catastrophic occurrence. 

(C) USE OF RESERVED OFFSET CREDITS.—Offset credits 

placed into the offsets reserve under this paragraph may 

not be used to comply with section 722 of the Clean Air 

Act. 

(d) TERM OFFSET CREDITS.— 

(1) APPLICABILITY.—With respect to a practice listed under 

section 503 that sequesters greenhouse gases and has a crediting period of no more than five years, the Secretary may address reversals pursuant to this subsection in lieu of permanently accounting for reversals pursuant to subsection (c). 

(2) ACCOUNTING FOR REVERSALS.—For such practices or 

projects implementing such practices, the Secretary shall require only reversals that occur during the crediting period to 

be accounted for and addressed pursuant to subsection (c). 


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(3) CREDITS ISSUED.—For practices or projects regulated pursuant to paragraph (2), the Secretary shall issue under section 

507 a term offset credit, in lieu of an offset credit, for each ton 

of carbon dioxide equivalent that has been sequestered. 

(e) CREDITING PERIODS.— (1) IN GENERAL.—For each offset practice type within an offset project, the Secretary shall specify a crediting period, and 

establish provisions for reenrollment for a subsequent crediting 

period, in accordance with this subsection. 

(2) DURATION.—The crediting period shall have a term of up 

to— 

(A) 5 years for agricultural sequestration practices; 

(B) 20 years for forestry sequestration practices; and 

(C) 10 years for other practice types that reduce or avoid 

greenhouse gas emissions or sequester greenhouse gases. 

(3) ELIGIBILITY.—An offset practice, within an offset project, 

shall— 

(A) be eligible to generate offset credits under this title 

only during the crediting period of the offset practice; and 

(B) remain eligible to generate offset credits, only during 

the crediting period, subject to the methodologies and practice type eligibility list that applied as of the date of the 

project approval. 

(4) REENROLLMENT FOR SUBSEQUENT CREDITING PERIOD.— (A) REENROLLMENT AUTHORIZED; TIME FOR REENROLL- MENT.—An offset project developer may reenroll for a subsequent crediting period, to commence after termination of 

the current crediting period, subject to the methodologies 

and practice type eligibility list in effect at the time of reenrollment. Reenrollment may not occur more than 18 

months before the end of the crediting period then in effect. 

(B) LIMITATION.—The Secretary may limit the number of 

subsequent crediting periods available for a particular 

practice type. 

(f) ENVIRONMENTAL INTEGRITY.—In establishing the requirements under this section, the Secretary shall apply conservative assumptions or methods to ensure the environmental integrity of the 

cap established under section 703 of the Clean Air Act is not compromised. 

SEC. 505. PROJECT PLAN SUBMISSION AND APPROVAL. 

(a) PROJECT PLAN REQUIRED.—An offset project developer shall 

submit to the Secretary an offset project plan for approval. 

(b) REQUIREMENTS.—As part of the regulations promulgated 

under this title, the Secretary shall include provisions for, and 

shall specify, the required components of an offset project plan, including— 

(1) designation of an offset project developer; 

(2) a list and schedule of the practices to be implemented; 

(3) any other information that the Secretary considers to be 

necessary— 

(A) to determine whether the offset practice, within the 

offset project, is eligible for issuance of offset credits under 

regulations promulgated under this title; and 

(B) to achieve the purposes of this title. 


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(c) TIME FOR CONSIDERATION; NOTIFICATION.—Not later than 90 

days after receiving a complete offset project plan under subsection 

(a), the Secretary shall— 

(1) approve the plan in writing and include an estimate of 

the offset project credits that will be earned if the plan is implemented, subject to verification of all project-specific variables; or 

(2) if the plan is denied, provide the reasons for denial in 

writing. 

(d) APPEAL.—The Secretary shall establish procedures for appeal 

and review of determinations made under this section. 

(e) RESUBMISSION.—After an offset project plan is approved, the 

offset project developer shall not be required to resubmit a project 

plan during the crediting period. 

SEC. 506. VERIFICATION OF OFFSET PRACTICES. 

(a) IN GENERAL.—As part of the regulations promulgated under 

this title, the Secretary shall establish requirements to verify— 

(1) that offset practices in an approved offset project plan 

have been implemented; and 

(2) the quantity of greenhouse gas emission reductions or 

avoidance, or sequestration of greenhouse gases, resulting from 

an offset practice and project. 

(b) VERIFICATION REPORTS.— (1) IN GENERAL.—The regulations described in subsection (a) 

shall require an offset project developer to submit a report, 

prepared by a third-party verifier accredited under subsection 

(c). 

(2) REQUIREMENTS.—The Secretary shall specify the components of a verification report required under paragraph (1), including— 

(A) the name and contact information for the offset 

project developer; 

(B) a certification that the project plan has been implemented; 

(C) the quantity of greenhouse gases reduced, avoided, 

or sequestered; 

(D) a certification establishing that the conflict of interest requirements in the regulations promulgated under 

this title have been complied with; 

(E) any other information that the Secretary requires to 

determine the quantity of greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, resulting from the offset practice and project; and 

(F) any other information that the Secretary considers to 

be necessary to achieve the purposes of this title. 

(c) VERIFIER ACCREDITATION.— 

(1) IN GENERAL.—As part of the regulations promulgated 

under this title, the Secretary shall establish a process and requirements for periodic accreditation of third-party verifiers for 

offset credits under this program to ensure that those verifiers 

are professionally qualified and have no conflicts of interest. 

(2) PUBLIC ACCESSIBILITY.—Each verifier meeting the requirements for accreditation in accordance with this subsection 

shall be listed in a publicly accessible database, which shall be 

maintained and updated by the Secretary. 


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SEC. 507. CERTIFICATION OF OFFSET CREDITS. 

(a) DETERMINATION AND NOTIFICATION.—Not later than 90 days 

after receiving a complete verification report, the Secretary shall— 

(1) make a determination of the quantity of greenhouse gas 

emissions that have been reduced or avoided, or greenhouse 

gases that have been sequestered, by the offset practice in an 

approved and verified offset project plan; and 

(2) notify the offset project developer in writing of the determination. 

(b) ISSUANCE OF OFFSET CREDITS.—The Secretary shall issue 1 

offset credit to an offset project developer for each ton of carbon dioxide equivalent that the Secretary determines has been reduced, 

avoided, or sequestered during the crediting period. Offset credits 

may be issued only for greenhouse gas emissions reduced, avoided, 

or sequestered after January 1, 2009. 

(c) APPEAL.—The Secretary shall establish procedures for appeal 

and review of determinations made under subsection (a). 

(d) TIMING.—Offset credits meeting the criteria described in subsection (b) shall be issued by the Secretary not later than 14 days 

after the date on which the Secretary makes a determination under 

subsection (a). 

(e) REGISTRATION.—The Secretary shall obtain from the Administrator a unique serial number to allow for the registration of each 

offset credit to be issued under this title. 

SEC. 508. OWNERSHIP AND TRANSFER OF OFFSET CREDITS. 

(a) OWNERSHIP.—Initial ownership of an offset credit shall lie 

with the offset project developer, unless otherwise specified in a legally binding contract or agreement. 

(b) TRANSFERABILITY.—An offset credit issued under this title 

may be sold, traded, or transferred, unless the offset credit has expired or been retired. 

SEC. 509. PROGRAM REVIEW AND REVISION. 

At least once every 5 years, the Secretary shall review and, 

based on new or updated information and taking into consideration 

the recommendations of the Advisory Board, update and revise— 

(1) the list of eligible practice types established under section 

503; 

(2) the methodologies established, including specific activity 

baselines, under section 504(a); 

(3) the reversal requirements and mechanisms established or 

prescribed under subsections (c) and (d) of section 504; 

(4) measures to improve the accountability of the offsets program; and 

(5) any other requirements established under this title to ensure the environmental integrity and effective operation of this 

title. 

SEC. 510. ENVIRONMENTAL CONSIDERATIONS. 

If the Secretary lists forestry practices as eligible offset practice 

types under section 503, the Secretary, in consultation with appropriate Federal agencies, shall promulgate regulations for the selection and use of species in forestry and other relevant land management-related offset practices— 

(1) to ensure that native species are given primary consideration in such practices; 


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(2) to encourage the conservation of biological diversity in 

such practices; 

(3) to prohibit the use of federally designated or State-designated noxious weeds; 

(4) to prohibit the use of a species listed by a regional or 

State invasive plant authority within the applicable region or 

State; and 

(5) in accordance with widely accepted, environmentally sustainable forestry practices. 

SEC. 511. AUDITS. 

(a) AUDITS REQUIRED.—The Secretary shall conduct, on an annual basis, random audits of offset projects, offset credits, and the 

practices of third-party verifiers. At a minimum, the Secretary 

shall conduct audits each year for a representative sample of practice types and geographical areas. 

(b) ADDITIONAL AUTHORITY.—Nothing in this section prevents the 

Secretary from conducting any audit the Secretary considers to be 

necessary. 

Subtitle B—USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee 

SEC. 531. ESTABLISHMENT OF USDA GREENHOUSE GAS EMISSION REDUCTION AND SEQUESTRATION ADVISORY COMMITTEE. 

Section 1245 of the Food Security Act of 1985 (16 U.S.C. 3854), 

as added by section 2709 of the Food, Conservation, and Energy 

Act of 2008 (Public Law 110–246; 122 Stat. 1809), is amended by 

adding at the end the following new subsection: 

‘‘(f) USDA GREENHOUSE GAS EMISSION REDUCTION AND SEQUESTRATION ADVISORY COMMITTEE.— 

‘‘(1) ESTABLISHMENT.—Not later than 30 days after the date 

of the enactment of the American Clean Energy and Security 

Act of 2009, the Secretary shall establish an independent advisory committee, to be known as the ‘USDA Greenhouse Gas 

Emission Reduction and Sequestration Advisory Committee’, to 

provide scientific and technical advice on establishing, implementing, and ensuring the overall environmental integrity of 

an offset program for domestic agricultural and forestry practices that reduce or avoid greenhouse gas emissions, or sequester greenhouse gases. 

‘‘(2) MEMBERSHIP.—The Advisory Committee shall be comprised of nine members, including a chairperson and vicechairperson, appointed by the Secretary. Each member shall be 

qualified by education, training, and experience to evaluate scientific and technical information for domestic agricultural and 

forestry offset practices that reduce or avoid greenhouse gas 

emissions or sequester greenhouse gases. 

‘‘(3) TERMS.—Terms shall be 3 years in length, except for the 

initial terms, which may be up to 5 years in length to allow 

staggered terms. Members may be reappointed only once for an 

additional 3-year term, and such term may follow directly after 

a first term. 


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‘‘(4) DUTIES.—The Advisory Committee shall— 

‘‘(A) provide options and recommendations, not later 

than 180 days after the date of the enactment of the American Clean Energy and Security Act of 2009, to the Secretary regarding the establishment of methodologies as described in section 504 of such Act, taking into account relevant scientific information, including— 

‘‘(i) the availability of representative data for use in 

developing an activity baseline for a land area, forest, 

soil, industry sector, and facility type; 

‘‘(ii) the potential for accurate quanitification of 

greenhouse gas reduction, or sequestration for an offset practice type; 

‘‘(iii) the potential level of scientific and measurement uncertainty associated with an offset practice 

type; and 

‘‘(iv) the use of practice methodologies that account 

for common practice or other direct comparisons within a relevant land area, industry sector, forest, soil, or 

facility type; 

‘‘(B) make available to the Secretary options and recommendations for the program as a whole and on offset 

methodologies for each practice type that should be considered under regulations promulgated pursuant to section 

504 of the American Clean Energy and Security Act of 

2009, including methodologies to address the issues of 

additionality, activity baselines, measurement, leakage, including the application of sector specific leakage factors, 

uncertainty, permanence, and environmental integrity; 

‘‘(C) make available to the Secretary advice and comment on areas where further knowledge is required to appraise the adequacy of existing, revised, or proposed methodologies and describe the research efforts necessary to 

provide the required information; 

‘‘(D) make available to the Secretary advice and comments on other ways to improve or safeguard the environmental integrity of the offset practice types listed under 

section 503 of the American Clean Energy and Security 

Act of 2009; and 

‘‘(E) provide options and recommendations regarding 

new practice types. 

‘‘(5) SCIENTIFIC REVIEW OF OFFSET PROGRAM.—Not later than 

January 1, 2017, and at 5-year intervals thereafter, the Advisory Committee shall— 

‘‘(A) submit to the Secretary and make available to the 

public an analysis of relevant scientific and technical information regarding agricultural and forestry offset practices 

that reduce or avoid greenhouse gas emissions or sequester greenhouse gases; 

‘‘(B) review approved and potential practice types, methodologies, scientific studies, offset project monitoring, offset 

project verification reports, reporting of reversals, audits 

related to the offset program, and other relevant information needed to evaluate the offset program; 


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‘‘(C) evaluate the net emission effects of implemented 

offset projects; and 

‘‘(D) recommend changes to offset methodologies, procedures, practice types, or the overall program to ensure 

that— 

‘‘(i) the offset practices result in reduced or avoided 

greenhouse gas emissions or sequestration of greenhouse gases; 

‘‘(ii) the offset credits issued by the Secretary do not 

compromise the integrity of the annual emissions reductions established under section 703 of the Clean 

Air Act; and 

‘‘(iii) the offset program avoids or minimizes adverse 

affects to human health and the environment. 

‘‘(6) COORDINATION.—To avoid duplication, the Advisory 

Committee shall coordinate its activities with those of any 

other Federal advisory committees working in related areas, 

and shall to the maximum extent possible use research data 

and services of the research, education, extension agencies of 

the Department of Agriculture. 

‘‘(7) CONSULTATION.—On a periodic basis, the Advisory Committee shall consult with, and be informed by the views of, the 

Offsets Integrity Advisory Board established under section 731 

of the Clean Air Act. 

‘‘(8) MEETING.—The Advisory Committee shall meet on at 

least a quarterly basis each year. 

‘‘(9) ADMINISTRATIVE SUPPORT AND FUNDING.—The Secretary 

may provide such administrative and funding support as necessary to enable the Advisory Committee to carry out its duties 

under this section. 

‘‘(10) REPORT.—For each fiscal year, the Secretary shall submit to Congress a report on— 

‘‘(A) the status and progress on the offset practices; 

‘‘(B) the general status of cooperation and research and 

development; and 

‘‘(C) the plans for addressing future issues and concerns.’’. 

Subtitle C—Miscellaneous 

SEC. 551. INTERNATIONAL INDIRECT LAND USE CHANGES. 

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end the following 

‘‘(13) INTERNATIONAL INDIRECT LAND USE CHANGES.— 

‘‘(A) EXCLUSION FROM REGULATORY REQUIREMENTS REGARDING LIFECYCLE GREENHOUSE GAS EMISSIONS.—Notwithstanding the definition of ‘lifecycle greenhouse gas 

emissions’ in paragraph (1)(H), for purposes of determining 

whether the fuel meets a definition in paragraph (1) or 

complies with paragraph (2)(A)(i), the Administrator shall 

exclude emissions from indirect land use changes outside 

the renewable fuel’s feedstock’s country of origin. 

‘‘(B) NATIONAL ACADEMIES OF SCIENCE REPORT.—(i) Not 

later than 6 months after the date of enactment of this 


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paragraph, the Administrator and the Secretary of Agriculture shall jointly arrange for the National Academies of 

Science to review and report on specified issues related to 

indirect greenhouse gas emissions related to transportation fuels. 

‘‘(ii) The report shall evaluate and report on whether 

there are economic and environmental models and methodologies that individually, or as a system, can project 

with reliability, predictability, and confidence— 

‘‘(I) for purposes of determining whether the fuel 

meets a definition in paragraph (1) or complies with 

paragraph (2)(A)(i), indirect land use changes that are 

related to the production of renewable fuels and that 

may occur outside the country in which the feedstocks 

are grown, and the impacts of these changes on greenhouse gas emissions; and 

‘‘(II) indirect effects, both domestic and international, related to the production and importation of 

non-renewable transportation fuels that have significant greenhouse gas emissions, and the impact of 

these effects on greenhouse gas emissions. 

‘‘(iii) The report shall include a review and assessment 

of all pertinent scientific studies, methodologies and data, 

shall evaluate potential methodologies for calculating such 

emissions (including an evaluation of methods for 

annualizing emissions associated with forest degradation 

or land conversion), and shall make appropriate recommendations. The recommendations shall address indirect effects, both domestic and international, related to the 

production and importation of non-renewable transportation fuels that have significant greenhouse gas emissions. The report shall use appropriate validation procedures, including sensitivity analyses, of how results change 

as assumptions change. The evaluation shall include for a 

model, a methodology, or a system of models— 

‘‘(I) an assessment of how reliably the models, methodologies, or systems track actual outcomes over historical periods using available historical data; and 

‘‘(II) an assessment of how reliably the models, 

methodologies or systems will project future outcomes. 

‘‘(iv) The report shall be publicly available and shall include sufficient information and data such that economists 

and other scientists with relevant expertise that are not on 

the National Academies of Science panel can fully evaluate 

the conclusions of the report. 

‘‘(v) The report shall be completed within three years of 

the date of enactment of this paragraph. 

‘‘(C) DETERMINATION.—(i) The Administrator and the 

Secretary of Agriculture shall, after notice and an opportunity for public comment, determine whether, for purposes of determining compliance with the percent reductions in lifecycle greenhouse gas emissions specified in 

paragraph (1) for various renewable fuels, scientifically 

valid models and methodologies exist to project indirect 

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newable fuels and that occur outside the country in which 

the feedstocks are grown, and the impact of these changes 

on greenhouse gas emissions. 

‘‘(ii) The determination shall take into account the findings and recommendations of the report required under 

subparagraph (B), as well as other available scientific, economic, and other relevant information. The Administrator 

and the Secretary may also consider methods used by the 

Environmental Protection Agency, the Department of Agriculture, and other Federal agencies to assess or guide their 

related policies. 

‘‘(iii) The Administrator and the Secretary of Agriculture 

shall publish a proposed determination not later than 4 

years after date of enactment of this paragraph, and shall 

publish a final determination not later than 5 years after 

date of enactment of this paragraph. An explanation and 

justification of the determination shall be included in the 

proposed and final actions, together with a response to 

comments received. 

‘‘(D) RESPONSE TO DETERMINATION.—(i) In the event of a 

positive determination under subparagraph (C), the Administrator and the Secretary of Agriculture shall, after 

notice and an opportunity for public comment, by the same 

date jointly establish a methodology (or methodologies) to 

calculate greenhouse gas emissions from indirect land use 

changes that are attributable to the production of renewable fuels and that occur outside the country in which 

feedstocks are grown for purposes of calculating a renewable fuel’s lifecycle greenhouse gas emissions to determine 

whether the fuel meets a definition in paragraph (1) or 

complies with paragraph (2)(A)(i). The exclusion in subparagraph (A) shall end, and the Administrator shall issue 

a regulation by the same date that shall include emissions 

from indirect land use changes outside the renewable fuel’s 

feedstock’s country of origin for purposes of calculating a 

renewable fuel’s lifecycle greenhouse gas emissions to determine whether the fuel meets a definition in paragraph 

(1) or complies with paragraph (2)(A)(i) for renewable fuels 

sold in the calendar year following the year of the positive 

determination. The effective date of the regulation shall be 

six years after the date of enactment of this paragraph. 

‘‘(ii) A negative determination under subparagraph (C) 

shall include a statement of the basis for the determination. 

‘‘(E) ACCOUNTABILITY.—The joint duties and actions of 

the Administrator and the Secretary of Agriculture shall 

be subject to sections 304 and 307 of this Act as if they 

were the duties and actions of the Administrator alone.’’. 

SEC. 552. BIOMASS-BASED DIESEL. 

Section 211(o)(2)(A) of the Clean Air Act (42 U.S.C. 7545(o)(2)(A)) 

is amended by adding at the end the following new clause: 

‘‘(v) GRANDFATHERING BIOMASS-BASED DIESEL.—The 

Administrator shall promulgate regulations exempting 

from the lifecycle greenhouse gas requirements in subparagraphs (B) and (D) of paragraph (1) up to the 


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greater of 1 billion gallons or the volume mandate 

adopted pursuant to subparagraph (B)(ii) of biomassbased diesel annually from facilities that commenced 

construction before the date of enactment of the Energy Independence and Security Act of 2007.’’. 

SEC. 553. MODIFICATION OF DEFINITION OF RENEWABLE BIOMASS. 

(a) NATIONAL ACADEMY OF SCIENCES REPORT.—Not later than 1 

year after the date of enactment of this Act, the Administrator of 

the Environmental Protection Agency, the Secretary of Agriculture, 

and the Federal Energy Regulatory Commission shall jointly arrange for the National Academy of Sciences to evaluate how 

sources of renewable biomass contribute to the goals of increasing 

America’s energy independence, protecting the environment, and 

reducing global warming pollution. 

(b) MODIFICATION.— (1) EPA MODIFICATION AUTHORITY.—After reviewing the report required by subsection (a), the Administrator of the Environmental Protection Agency, in concurrence with the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal lands portion of the 

definition of ‘‘renewable biomass’’ in sections 211(o)(1)(I) and 

700 of the Clean Air Act in order to advance the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution. 

(2) FERC MODIFICATION AUTHORITY.—After reviewing the report required by subsection (a), the Federal Energy Regulatory 

Commission, in concurrence with the Secretary of Agriculture, 

may, by regulation and after public notice and comment, modify the non-Federal lands portion of the definition of ‘‘renewable biomass’’ in section 610 of the Public Utility Regulatory 

Policies Act of 1978 in order to advance the goals of increasing 

America’s energy independence, protecting the environment, 

and reducing global warming pollution. 

(c) FEDERAL LANDS.— (1) SCIENTIFIC REVIEW.—The Secretary of the Interior, the 

Secretary of Agriculture, and the Administrator of the Environmental Protection Agency shall conduct a joint scientific review, within one year after the date of enactment of this Act, 

to evaluate how sources of biomass from Federal lands could 

contribute to the goals of increasing America’s energy independence, protecting the environment, and reducing global 

warming pollution. 

(2) MODIFICATION AUTHORITY.—Based on the scientific review, the agencies may, by rule, modify the definition of ‘‘renewable biomass’’ from Federal lands in sections 211(o)(1)(I) 

and 700 of the Clean Air Act and section 610 of the Public 

Utility Regulatory Policies Act of 1978 as appropriate to advance the goals of increasing America’s energy independence, 

protecting the environment, and reducing global warming pollution. 

PART B—TEXT OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE

TO BE MADE IN ORDER

Strike all after the enacting clause and insert the following: 


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SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘New Manhattan Project for Energy 

Independence’’. 

SEC. 2. DEFINITIONS. 

In this Act— 

(1) COMMISSION.—The term ‘‘Commission’’ means the Commission established under section 7. 

(2) RESEARCH.—The term ‘‘research’’ includes research on the 

technologies, materials, and manufacturing processes required 

to achieve the goals described in section 3. 

SEC. 3. GOALS. 

(a) IN GENERAL.—The purpose of this Act is to enable the 

achievement of each of the following goals: 

(1) VEHICLE FUEL EFFICIENCIES AND ALTERNATIVE FUEL

SOURCES.—Development and manufacturing of a plug-in hybrid 

vehicle, alternative fuel vehicle, electric vehicle, hydrogen fuel 

cell vehicle, or other alternative technology vehicle— 

(A) that is not more than 10 percent more expensive 

than a comparable model vehicle of the same model year; 

(B) with— 

(i) equal acceleration, horsepower, and top speed 

performance; and 

(ii) not more than 20 percent reduction in cargo 

space, 

as compared to a comparable model vehicle of the same 

model year; 

(C) that meets or exceeds Federal safety standards; 

(D) that can travel at least 750 miles between refueling; 

and 

(E) in the case of a gasoline powered vehicle, that can 

travel at least 70 miles per gallon of gasoline. 

(2) GREEN BUILDINGS.—Develop and build an energy efficient 

residential or commercial building that— 

(A) uses no more than 50 percent of the energy of the 

average new building of similar size and type; 

(B) costs no more than 15 percent more to construct 

than the cost of a building of similar size and type; and 

(C) can be effectively reproduced in a variety of climate 

environments found in the United States. 

(3) SOLAR POWER.—Construction of a large scale solar thermal power plant or solar photovoltaic power plant capable of 

generating 300 megawatts or more at a cost of 10 cents or less 

per kilowatt-hour when all capital and operating expenses are 

calculated into the cost. 

(4) BIOFUELS.—Development and production of a biofuel 

that, when mass produced, does not exceed 105 percent of the 

cost for the energy equivalent of unleaded gasoline when all 

capital and operating expenses are calculated into the cost of 

the biofuel. 

(5) CARBON SEQUESTRATION.—Development and implementation of a carbon capture and storage system for a large scale 

coal-burning power plant that does not increase operating costs 

more than 15 percent compared to a baseline design without 

carbon capture and storage while providing an estimated 


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chance of carbon dioxide escape no greater than 1 percent over 

5,000 years. 

(6) NUCLEAR WASTE.—Development of both— 

(A) a validated process for remediation of the radioactive 

waste form so it is no longer harmful to the health or welfare of the environment or individuals for a period to be 

determined by the Commission, which shall be not less 

than 5,000 years; and 

(B) a model that accounts for all the effects of nuclear 

waste in that process. 

(7) NUCLEAR FUSION.—Development of a sustainable nuclear 

fusion reaction capable of providing a large-scale (greater than 

300 megawatts), sustainable source of electricity for residential, commercial, or government entities. 

(b) AMENDMENT OF GOALS.—The Secretary of Energy may amend 

a goal described in subsection (a) pursuant to a recommendation 

from the Commission under section 7(b)(5), or on his own initiative, 

if such amendment serves the purpose of achieving the goal of 

United States energy independence through the development of 

technologies that lead to the widespread adoption of improvements 

that increase energy supply or energy efficiency. 

SEC. 4. SUMMIT. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, the President shall convene a summit that includes— 

(1) the principal advisors and directors of all programs in the 

Federal Government related to the achievement of the goals 

described in section 3; 

(2) the members of the Commission; and 

(3) leading researchers at the Federal laboratories and representatives of private sector partners engaged in the production and manufacturing of technologies necessary to achieve 

the goals described in section 3. 

(b) PURPOSE.—The summit shall be for the purpose of reviewing 

the progress and promise for each of these technologies, the interrelationship of these technologies to each other, and additional 

funding resources needed to accelerate the progress of these programs toward achieving the goals described in section 3. 

SEC. 5. GRANT PROGRAM. 

(a) IN GENERAL.—The Secretary of Energy, in consultation with 

the Secretary of Defense, the Secretary of Transportation, the Administrator of the Environmental Protection Agency, and other 

Federal agencies as appropriate, shall carry out a program consisting of a collaborative effort with industry, government, and academia to support research, development, demonstration, and commercial application activities related to achieving the goals described in section 3. 

(b) GRANTS.—Such program shall consist of grants to researchers, large and small businesses, National Laboratories, institutions 

of higher education, or any other qualified applicant, including veterans. 

(c) LIMITATION ON AMOUNT.—No grant shall be made under this 

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ized under section 8(1) for prizes for the achievement of the same 

goal. 

(d) COST SHARING.—The Federal share of the costs of a project 

for which a grant is made under this section shall not exceed 15 

percent. 

SEC. 6. PRIZE PROGRAM. 

(a) PRIZE AUTHORITY.— (1) IN GENERAL.—The Secretary of Energy shall carry out a 

program to competitively award cash prizes in conformity with 

this section to advance the research, development, demonstration, and commercial application necessary to achieve the goals 

described in section 3. 

(2) ADVERTISING AND SOLICITATION OF COMPETITORS.— (A) ADVERTISING.—The Secretary shall widely advertise 

prize competitions under this section to encourage broad 

participation by researchers, large and small businesses, 

institutions of higher education, and any other qualified 

applicants, including veterans. 

(B) ANNOUNCEMENT THROUGH FEDERAL REGISTER NO- TICE.—The Secretary shall announce each prize competition under this section by publishing a notice in the Federal Register. This notice shall include essential elements 

of the competition such as the subject of the competition, 

the duration of the competition, the eligibility requirements for participation in the competition, the process for 

participants to register for the competition, the amount of 

the prize, and the criteria for awarding the prize, which 

shall include, at a minimum, the achievement of one of the 

goals described in section 3. 

(3) ANNOUNCEMENT OF PRIZES.—The Secretary may not issue 

a notice required by paragraph (2)(B) until all the funds needed to pay out the announced amount of the prize have been appropriated. 

(b) PRIZE CATEGORIES.— (1) CATEGORIES.—The Secretary of Energy shall establish a 

single prize under this section for each of the goals described 

in paragraphs (1) through (7) of section 3. 

(2) CRITERIA.—In establishing the criteria required by this 

section, the Secretary— 

(A) shall consult with other Federal agencies, including 

the National Science Foundation; and 

(B) may consult with other experts such as private organizations, including professional societies, industry associations, and the National Academy of Sciences and the 

National Academy of Engineering. 

(c) ELIGIBILITY.—To be eligible to win a prize under this section, 

an individual or entity— 

(1) shall have complied with all the requirements in accordance with the Federal Register notice required under subsection (a)(2)(B); 

(2) in the case of a private entity, shall be incorporated in 

and maintain a primary place of business in the United States, 

and in the case of an individual, whether participating singly 

or in a group, shall be a citizen of, or an alien lawfully admitted for permanent residence in, the United States; and 


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(3) shall not be a Federal entity, a Federal employee acting 

within the scope of his employment, or an employee of a national laboratory acting within the scope of his employment. 

(d) AWARD SELECTION.— (1) IN GENERAL.—The Secretary of Energy shall award prizes 

under this section on the basis of the criteria published in the 

notice required under subsection (a)(2)(B), after receiving the 

recommendations of the Commission under section 7(b)(3). 

(2) CONGRESSIONAL NOTIFICATION.—If the Secretary awards 

a prize under paragraph (1) in a manner that does not conform 

to the recommendations of the Commission, the Secretary shall 

transmit a report to the Congress explaining the reasons for 

such action. 

(e) INTELLECTUAL PROPERTY.—The Federal Government shall 

not, by virtue of offering or awarding a prize under this section, be 

entitled to any intellectual property rights derived as a consequence of, or direct relation to, the participation by a registered 

participant in a competition authorized by this section. This subsection shall not be construed to prevent the Federal Government 

from negotiating a license for the use of intellectual property developed for a prize competition under this section. 

(f) LIABILITY.— (1) WAIVER OF LIABILITY.—The Secretary of Energy may require registered participants to waive claims against the Federal Government (except claims for willful misconduct) for any 

injury, death, damage, or loss of property, revenue, or profits 

arising from the registered participants’ participation in a competition under this section. The Secretary shall give notice of 

any waiver required under this paragraph in the notice required by subsection (a)(2)(B). 

(2) LIABILITY INSURANCE.— (A) REQUIREMENTS.—Registered participants in a prize 

competition under this section shall be required to obtain 

liability insurance or demonstrate financial responsibility, 

in amounts determined by the Secretary, for claims by— 

(i) a third party for death, bodily injury, or property 

damage or loss resulting from an activity carried out 

in connection with participation in a competition 

under this section; and 

(ii) the Federal Government for damage or loss to 

Government property resulting from such an activity. 

(B) FEDERAL GOVERNMENT INSURED.—The Federal Government shall be named as an additional insured under a 

registered participant’s insurance policy required under 

subparagraph (A) with respect to claims described in 

clause (i) of that subparagraph, and registered participants 

shall be required to agree to indemnify the Federal Government against third party claims for damages arising 

from or related to competition activities under this section. 

(g) NONSUBSTITUTION.—The programs created under this section 

shall not be considered a substitute for Federal research and development programs. 

SEC. 7. COMMISSION. 

(a) ESTABLISHMENT.—There shall be established the New Manhattan Project Commission on Energy Independence. 


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(b) FUNCTIONS.—The Commission shall— 

(1) not later than 1 year after the date of enactment of this 

Act, submit to Congress and the President a report containing— 

(A) recommendations on steps that must be taken in 

order for the United States to achieve 50 percent energy 

independence within 10 years and 100 percent energy 

independence within 20 years; and 

(B) an assessment of the impact of foreign energy dependence on United States national security; 

(2) advise the Secretary of Energy on the design and operation of the grant program established under section 5; 

(3) make recommendations to the Secretary of Energy on the 

design and operation, including selection criteria, of the prize 

program carried out under section 6; 

(4) make recommendations to the Secretary of Energy selecting participants who have achieved a goal for which a prize 

will be awarded under section 6; and 

(5) submit recommendations to Congress for any amendments to make the goals described in section 3 more stringent, 

as appropriate because of changing circumstances, if such 

amendments serve the purpose of achieving the goal of United 

States energy independence through the development of technologies that lead to the widespread adoption of improvements 

that increase energy supply or energy efficiency. 

(c) MEMBERSHIP.—The Commission shall be composed of 13 

members as follows: 

(1) The Under Secretary for Science of the Department of 

Energy. 

(2) The Administrator of the Research and Innovative Technology Administration. 

(3) The Director of the National Science Foundation. 

(4) The Chairman of the Federal Laboratory Consortium for 

Technology Transfer. 

(5) The President of the National Academy of Sciences. 

(6) 2 members appointed by the Speaker of the House of 

Representatives. 

(7) 2 members appointed by the minority leader of the House 

of Representatives. 

(8) 2 members appointed by the majority leader of the Senate. 

(9) 2 members appointed by the minority leader of the Senate. 

(d) TERMS OF MEMBERSHIP.—Each member of the Commission 

appointed under subsection (c)(6) through (9) shall be appointed for 

a term of two years, except that of the members first appointed, 

one under each of those paragraphs shall be appointed for a term 

of one year. A member of the Commission may serve after the expiration of the member’s term until a successor has taken office. 

(e) VACANCIES.—A vacancy in the Commission shall not affect its 

powers but, in the case of a member appointed under subsection 

(c)(6) through (9), shall be filled in the same manner as the original 

appointment was made. Any member appointed to fill a vacancy for 

an unexpired term shall be appointed for the remainder of such 

term. 


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(f) QUORUM.—Seven members of the Commission shall constitute 

a quorum. 

(g) MEETINGS.—The Commission shall meet at the call of the 

Chairman or a majority of its members. 

(h) COMPENSATION.—(1) Each member of the Commission shall 

serve without compensation. 

(2) While away from their homes or regular places of business in 

the performance of duties for the Commission, members of the 

Commission shall be allowed travel expenses, including per diem in 

lieu of subsistence, at rates authorized for employees of agencies 

under sections 5702 and 5703 of title 5, United States Code. 

(i) STAFF.—Subject to rules prescribed by the Commission, the 

Commission may appoint personnel as it considers appropriate. 

(j) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The staff of 

the Commission shall be appointed subject to the provisions of title 

5, United States Code, governing appointments in the competitive 

service, and shall be paid in accordance with the provisions of 

chapter 51 and subchapter III of chapter 53 of that title relating 

to classification and General Schedule pay rates. 

(k) EXPERTS AND CONSULTANTS.—The Commission may procure 

temporary and intermittent services under section 3109(b) of title 

5, United States Code. 

(l) HEARINGS AND SESSIONS.—The Commission may, for the purpose of carrying out this Act, hold hearings, sit and act at times 

and places, take testimony, and receive evidence as the Commission considers appropriate. 

(m) POWERS OF MEMBERS AND AGENTS.—Any member or agent 

of the Commission may, if authorized by the Commission, take any 

action which the Commission is authorized to take by this section. 

(n) OBTAINING OFFICIAL DATA.—The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act. Upon request of 

the Commission, the head of that department or agency shall furnish that information to the Commission. 

(o) SUBPOENA POWER.— 

(1) IN GENERAL.—The Commission may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter under investigation by the Commission. The attendance of witnesses and the 

production of evidence may be required from any place within 

the United States at any designated place of hearing within 

the United States. 

(2) FAILURE TO OBEY A SUBPOENA.—If a person refuses to 

obey a subpoena issued under paragraph (1), the Commission 

may apply to a United States district court for an order requiring that person to appear before the Commission to give testimony, produce evidence, or both, relating to the matter under 

investigation. The application may be made within the judicial 

district where the hearing is conducted or where that person 

is found, resides, or transacts business. Any failure to obey the 

order of the court may be punished by the court as civil contempt. 

(3) SERVICE OF SUBPOENAS.—The subpoenas of the Commission shall be served in the manner provided for subpoenas 


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issued by a United States district court under the Federal 

Rules of Civil Procedure for the United States district courts. 

(4) SERVICE OF PROCESS.—All process of any court to which 

application is made under paragraph (2) may be served in the 

judicial district in which the person required to be served resides or may be found. 

(p) FEDERAL ADVISORY COMMITTEE ACT.—Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 

Commission. 

SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary of Energy— 

(1) for the period encompassing fiscal years 2010 through 

2019— 

(A) $500,000,000 for awarding the prize under section 6 

for meeting the goal described in section 3(1); 

(B) $250,000,000 for awarding the prize under section 6 

for meeting the goal described in section 3(2); 

(C) $250,000,000 for awarding the prize under section 6 

for meeting the goal described in section 3(3); 

(D) $1,000,000,000 for awarding the prize under section 

6 for meeting the goal described in section 3(4); 

(E) $1,000,000,000 for awarding the prize under section 

6 for meeting the goal described in section 3(5); 

(F) $1,000,000,000 for awarding the prize under section 

6 for meeting the goal described in section 3(6); 

(G) $10,000,000,000 for awarding the prize under section 

6 for meeting the goal described in section 3(7); and 

(H) $10,000,000,000 for carrying out the grant program 

under section 5; and 

(2) such sums as may be necessary for carrying out this Act 

for subsequent fiscal years. 

Æ 


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