II 

112TH CONGRESS 

1ST SESSION S. 1321 

To establish energy policies to make measurable gains in reducing dependence 

on foreign oil, saving Americans money, increasing United States competitiveness, improving energy security, improving environmental stewardship, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 30, 2011 

Mr. LUGAR introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To establish energy policies to make measurable gains in 

reducing dependence on foreign oil, saving Americans 

money, increasing United States competitiveness, improving energy security, improving environmental stewardship, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Practical Energy Plan Act of 2011’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—REDUCING FOREIGN OIL DEPENDENCE 

Subtitle A—Expanded Domestic Oil Production 

Sec. 101. Oil production through carbon dioxide sequestration. 

Sec. 102. Restoring Gulf of Mexico oil production. 

Sec. 103. Safety assessments. 

Sec. 104. Restoring oil and gas lease sales. 

Sec. 105. Equal treatment of permits in Alaska. 

Sec. 106. Offshore resource review and seismic surveys. 

Subtitle B—Vehicle Efficiency 

Sec. 111. Fuel efficiency planning. 

Subtitle C—Fuel Choice 

Sec. 121. Competitive production incentives for advanced renewable fuels. 

Sec. 122. Fuel options through the availability of dual fueled vehicles and light 

duty trucks. 

Subtitle D—Federal Fleets 

Sec. 131. Department of Defense alternative fuels contracting. 

Sec. 132. Fuels for national security agencies. 

Sec. 133. Savings from transportation energy performance contracts. 

TITLE II—ENERGY EFFICIENCY 

Subtitle A—Energy Performance in Buildings 

Sec. 201. Saving energy in new buildings. 

Sec. 202. Enabling homes and buildings energy retrofits. 

Sec. 203. Rural energy savings. 

Subtitle B—Federal Properties 

Sec. 211. Energy efficient Federal buildings. 

Sec. 212. Accelerating energy savings performance contracts. 

Sec. 213. Sense of Congress on inclusion of energy efficiency as selection criteria for base closure and realignment decisions. 

Sec. 214. Federal property realignment and savings. 

Subtitle C—Industrial and Power Generation Energy Efficiency 

Sec. 221. State partnership industrial energy efficiency revolving loan program. 

Sec. 222. Study of new source review to encourage energy efficiency. 

Subtitle D—Procurement, Equipment, and Appliance Efficiency 

Sec. 231. Appliance and equipment efficiency. 

Sec. 232. Federal procurement and usage of energy efficient products. 

TITLE III—MEASUREMENT AND REVIEW 

Sec. 301. Measurement and review. 


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1 TITLE I—REDUCING FOREIGN 

2 OIL DEPENDENCE 

3 Subtitle A—Expanded Domestic Oil 

4 Production 

5 SEC. 101. OIL PRODUCTION THROUGH CARBON DIOXIDE 

6 SEQUESTRATION. 

7 (a) PIONEER PROJECTS.— 

8 (1) INVESTMENT TAX CREDIT.— 

9 (A) IN GENERAL.—Subpart E of part IV 

10 of subchapter A of chapter 1 of the Internal 

11 Revenue Code of 1986 is amended by inserting 

12 after section 48D the following new section: 

13 ‘‘SEC. 48E. PIONEER PROJECT INVESTMENT CREDIT. 

14 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

15 pioneer project investment credit for any taxable year is 

16 an amount equal to 70 percent of the qualified investment 

17 for such taxable year with respect to any qualifying pio18 neer project. 

19 ‘‘(b) QUALIFIED INVESTMENT.— 

20 ‘‘(1) IN GENERAL.—For purposes of subsection 

21 (a), the qualified investment for any taxable year is 

22 basis of eligible property placed in service by the 

23 taxpayer during such taxable year which is part of 

24 a qualifying pioneer project— 


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1 ‘‘(A)(i) the construction, reconstruction, or 

2 erection of which is completed by the taxpayer, 

3 or 

4 ‘‘(ii) which is acquired by the taxpayer if 

5 the original use of such property commences 

6 with the taxpayer, and 

7 ‘‘(B) with respect to which depreciation (or 

8 amortization in lieu of depreciation) is allow9 able. 

10 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

11 PROPERTY.—Rules similar to section 48(a)(4) (with12 out regard to subparagraph (D) thereof) shall apply 

13 for purposes of this section. 

14 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI15 TURES RULES MADE APPLICABLE.—Rules similar to 

16 the rules of subsections (c)(4) and (d) of section 46 

17 (as in effect on the day before the enactment of the 

18 Revenue Reconciliation Act of 1990) shall apply for 

19 purposes of this section. 

20 ‘‘(c) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) QUALIFYING PIONEER PROJECT.—The 

22 term ‘qualifying pioneer project’ means a project— 

23 ‘‘(A) which captures carbon dioxide which 

24 is— 

25 ‘‘(i) emitted in connection with— 


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1 ‘‘(I) power generation, or 

2 ‘‘(II) industrial production, 

3 ‘‘(ii) subject to an eligible enhanced 

4 oil recovery contract, and 

5 ‘‘(iii) delivered for use in a qualified 

6 enhanced oil recovery project (as defined in 

7 section 43(c)(2)) by means of a qualified 

8 carbon dioxide trunkline, 

9 ‘‘(B) with respect to which carbon dioxide 

10 has not been delivered for reuse, geological se11 questration, or enhanced oil recovery at any 

12 time before carbon dioxide is delivered for use 

13 in a qualified enhanced oil recovery project pur14 suant to the eligible enhanced oil recovery con15 tract, and 

16 ‘‘(C) which is certified by the Secretary 

17 under subsection (d). 

18 ‘‘(2) ELIGIBLE ENHANCED OIL RECOVERY CON19 TRACT.—The term ‘eligible enhanced oil recovery 

20 contract’ means a contract— 

21 ‘‘(A) which requires the delivery of carbon 

22 dioxide which is— 

23 ‘‘(i) to be used in connection with a 

24 qualified enhanced oil recovery project (as 

25 so defined), and 


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1 ‘‘(ii) to be disposed of in secure geo2 logical storage (within the meaning of sec3 tion 45Q), 

4 ‘‘(B) which specifies such delivery over a 

5 period of not less than 10 years, and 

6 ‘‘(C) under which the first such delivery 

7 occurs after the date of the enactment of this 

8 section. 

9 ‘‘(3) QUALIFIED CARBON DIOXIDE TRUNK10 LINE.—The term ‘qualified carbon dioxide trunkline’ 

11 means a pipeline— 

12 ‘‘(A) which is for the transportation of car13 bon dioxide for use in qualified enhanced oil re14 covery projects (as so defined), 

15 ‘‘(B) which has a free flow capacity of not 

16 less than 7,500,000 metric tons per year, 

17 ‘‘(C) which extends not less than 300 

18 miles, and 

19 ‘‘(D) the construction of which is started 

20 after the date of the enactment of this section. 

21 ‘‘(4) ELIGIBLE PROPERTY.—The term ‘eligible 

22 property’ means any property which is a part of a 

23 qualifying pioneer project and— 

24 ‘‘(A) in the case of any qualifying pioneer 

25 project with respect to which the isolation and 


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1 capture of carbon dioxide is integral to the pri2 mary function of the project (as determined by 

3 the Secretary in consultation with the Secretary 

4 of Energy), which— 

5 ‘‘(i) is necessary for the additional 

6 compression of carbon dioxide, and 

7 ‘‘(ii) would not be used in connection 

8 with such project if such project were not 

9 designed to compress carbon dioxide, and 

10 ‘‘(B) in any other case, which— 

11 ‘‘(i) is necessary for the isolation and 

12 capture of carbon dioxide, and 

13 ‘‘(ii) would not be used in connection 

14 with such project if such project were not 

15 designed to capture carbon dioxide. 

16 ‘‘(d) CERTIFICATION.— 

17 ‘‘(1) IN GENERAL.—Subject to the limitations 

18 under paragraph (2), the Secretary, in consultation 

19 with the Secretary of Energy, shall certify a project 

20 as a qualifying pioneer project if the Secretary de21 termines that such project meets the requirements of 

22 subsection (c)(1)(A). Projects shall be certified in 

23 the order in which requests for certification are re24 ceived by the Secretary. 

25 ‘‘(2) LIMITATIONS.— 


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1 ‘‘(A) IN GENERAL.—The aggregate 

2 amount of carbon dioxide required to be deliv3 ered under eligible enhanced oil recovery con4 tracts for all qualifying pioneer projects cer5 tified by the Secretary shall not exceed 

6 25,000,000 metric tons in any year. 

7 ‘‘(B) INDUSTRIAL PRODUCTION

8 SOURCES.—The aggregate amount of carbon di9 oxide required to be delivered under eligible en10 hanced oil recovery contracts for all qualifying 

11 pioneer projects certified by the Secretary with 

12 respect to sources described in subsection 

13 (c)(1)(A)(i)(II) shall not exceed 12,500,000 

14 metric tons in any year. 

15 ‘‘(C) TRUNKLINE CAPACITY.—The Sec16 retary shall not certify as a qualifying pioneer 

17 project any project if the sum of— 

18 ‘‘(i) the amount of carbon dioxide re19 quired to be delivered under the eligible en20 hanced oil recovery contract with respect to 

21 such project in any year, plus 

22 ‘‘(ii) the amount carbon dioxide re23 quired to be delivered in such year under 

24 all other qualifying pioneer projects pre25 viously certified by the Secretary and using 


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1 the same qualified carbon dioxide trunkline 

2 as such project, 

3 exceeds 60 percent of the greater of the free 

4 flow or operational capacity of such qualified 

5 carbon dioxide trunkline. 

6 ‘‘(3) COORDINATION WITH DEPLOYMENT

7 PROJECT CREDIT.—The Secretary shall not certify 

8 any project under this subsection if such project has 

9 been certified under section 45T. 

10 ‘‘(e) OTHER RULES.— 

11 ‘‘(1) TRANSFER OF CREDIT.— 

12 ‘‘(A) IN GENERAL.—A taxpayer who 

13 makes a qualified investment may transfer the 

14 credit allowed under this section with respect a 

15 qualifying pioneer project through an assign16 ment to any party to the eligible enhanced oil 

17 recovery contract in connection with such quali18 fying pioneer project. Such transfer may be re19 voked only with the consent of the Secretary. 

20 ‘‘(B) REGULATIONS.—The Secretary shall 

21 prescribe such regulations as necessary to en22 sure that any credit transferred under subpara23 graph (A) is claimed once and not reassigned 

24 by such other person. 


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1 ‘‘(2) RECAPTURE.—The Secretary shall provide 

2 for recapturing the benefit of any credit allowable 

3 under subsection (a) with respect to any project 

4 which ceases to be a qualifying pioneer project.’’. 

5 (B) INCLUSION AS PART OF INVESTMENT

6 CREDIT.—Section 46 of such Code is amend7 ed— 

8 (i) by striking ‘‘and’’ at the end of 

9 paragraph (5), 

10 (ii) by striking the period at the end 

11 of paragraph (6) and inserting ‘‘, and’’, 

12 and 

13 (iii) by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(7) the pioneer project investment credit.’’. 

16 (C) CONFORMING AMENDMENTS.—Section 

17 49(a)(1)(C) of such Code is amended— 

18 (i) by striking ‘‘and’’ at the end of 

19 clause (v), 

20 (ii) by striking the period at the end 

21 of clause (vi) and inserting ‘‘, and’’, and 

22 (iii) by adding at the end the fol23 lowing new clause: 


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1 ‘‘(vii) the basis of any property which 

2 is part of a qualifying pioneer project 

3 under such section 48E.’’. 

4 (D) CLERICAL AMENDMENT.—The table of 

5 sections for subpart E of part IV of subchapter 

6 A of chapter 1 of such Code is amended by in7 serting after the item relating to section 48D 

8 the following new item: 

‘‘Sec. 48E. Pioneer project investment credit.’’. 

9 (E) EFFECTIVE DATE.—The amendments 

10 made by this paragraph shall apply to periods 

11 beginning after the date of the enactment of 

12 this Act, under rules similar to the rules of sec13 tion 48(m) of the Internal Revenue Code of 

14 1986 (as in effect on the day before the date 

15 of the enactment of the Revenue Reconciliation 

16 Act of 1990). 

17 (2) PRODUCTION TAX CREDIT.— 

18 (A) IN GENERAL.—Subpart D of part IV 

19 of subchapter A of chapter 1 of the Internal 

20 Revenue Code of 1986 is amended by adding at 

21 the end the following new section: 

22 ‘‘SEC. 45S. PIONEER PROJECT CARBON DIOXIDE PRODUC23 TION CREDIT. 

24 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

25 the pioneer project production credit for any taxable year 


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1 is an amount equal to the sum of the quarterly carbon 

2 dioxide production credits of the taxpayer for such taxable 

3 year. 

4 ‘‘(b) QUARTERLY CARBON DIOXIDE PRODUCTION

5 CREDIT.—For purposes of this section— 

6 ‘‘(1) IN GENERAL.—The quarterly carbon diox7 ide production credit of a taxpayer for the portion 

8 of any calendar quarter within the taxable year of 

9 the taxpayer is equal to the product of— 

10 ‘‘(A) the credit amount with respect to 

11 such calendar quarter, and 

12 ‘‘(B) the number of metric tons of carbon 

13 dioxide which is— 

14 ‘‘(i) captured by the taxpayer at quali15 fying pioneer projects during the portion of 

16 the calendar quarter which is within such 

17 taxpayer’s taxable year, and 

18 ‘‘(ii) subject to an eligible enhanced 

19 oil recovery contract. 

20 ‘‘(2) CREDIT AMOUNT.— 

21 ‘‘(A) IN GENERAL.—The credit amount 

22 with respect to any calendar quarter is $30 re23 duced (but not below zero) by the amount (if 

24 any) determined under subparagraph (B). 


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1 ‘‘(B) AMOUNT OF REDUCTION.—The 

2 amount determined under this paragraph is the 

3 amount equal to 50 percent of the excess of— 

4 ‘‘(i) the average price per barrel of 

5 West Texas Intermediate crude oil for the 

6 preceding calendar quarter, over 

7 ‘‘(ii) $80. 

8 ‘‘(3) LIMITATION.—No amount of carbon diox9 ide shall taken into account under paragraph (1)(B) 

10 with respect to a qualifying pioneer project after the 

11 date which is 10 years after the date on which such 

12 qualifying pioneer project begins delivery of carbon 

13 dioxide for enhanced oil recovery but not less than 

14 1 year after the project is placed in service. 

15 ‘‘(c) DEFINITIONS AND OTHER RULES.—For pur16 poses of this section— 

17 ‘‘(1) QUALIFYING PIONEER PROJECT; ELIGIBLE

18 ENHANCED OIL RECOVERY CONTRACT.—The terms 

19 ‘qualifying pioneer project’ and ‘eligible enhanced oil 

20 recovery contract’ have the meanings given such 

21 terms in section 48E. 

22 ‘‘(2) TRANSFER OF CREDIT.— 

23 ‘‘(A) IN GENERAL.—A taxpayer may 

24 transfer the credit allowed under this section 

25 with respect a qualifying pioneer project 


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1 through an assignment to any party to the eli2 gible enhanced oil recovery contract with re3 spect to such qualifying pioneer project. Such 

4 transfer may be revoked only with the consent 

5 of the Secretary. 

6 ‘‘(B) REGULATIONS.—The Secretary shall 

7 prescribe such regulations as necessary to en8 sure that any credit transferred under subpara9 graph (A) is claimed once and not reassigned 

10 by such other person. 

11 ‘‘(3) RECAPTURE.—The Secretary shall provide 

12 for recapturing the benefit of any credit allowable 

13 under subsection (a) with respect to any project 

14 which ceases to be a qualifying pioneer project. 

15 ‘‘(4) ELECTION NOT TO CLAIM CREDIT.—This 

16 section shall not apply to a taxpayer for any taxable 

17 year if such taxpayer elects to have this section not 

18 apply for such taxable year.’’. 

19 (B) CREDIT TO BE PART OF GENERAL

20 BUSINESS CREDIT.—Subsection (b) of section 

21 38 of such Code is amended by striking ‘‘plus’’ 

22 at the end of paragraph (35), by striking the 

23 period at the end of paragraph (36) and insert24 ing ‘‘, plus’’, and by adding at the end the fol25 lowing new paragraph: 


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1 ‘‘(37) the pioneer project production credit de2 termined under section 45S(a).’’. 

3 (C) COORDINATION WITH SECTION 45Q.— 

4 Subsection (d) of section 45Q of such Code is 

5 amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(8) NO DOUBLE BENEFIT.—No credit shall be 

8 allowed under this section for the capture of any 

9 carbon dioxide with respect to which a credit is al10 lowed under section 45S.’’. 

11 (D) CONFORMING AMENDMENTS.— 

12 (i) The table of sections for subpart D 

13 of part IV of subchapter A of chapter 1 of 

14 such Code is amended by inserting after 

15 the item relating to section 45R the fol16 lowing new item: 

‘‘Sec. 45S. Pioneer project carbon dioxide production credit.’’. 

17 (ii) Section 6501(m) of such Code is 

18 amended by inserting ‘‘45S(c)(4),’’ after 

19 ‘‘45H(g),’’. 

20 (E) EFFECTIVE DATE.—The amendments 

21 made by this paragraph shall apply to taxable 

22 years beginning after the date of the enactment 

23 of this Act. 

24 (b) DEPLOYMENT PROJECTS.— 

25 (1) PRODUCTION TAX CREDIT.— 


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1 (A) IN GENERAL.—Subpart D of part IV 

2 of subchapter A of chapter 1 of the Internal 

3 Revenue Code of 1986, as amended by sub4 section (a)(2), is amended by adding at the end 

5 the following new section: 

6 ‘‘SEC. 45T. DEPLOYMENT PROJECT CARBON DIOXIDE PRO7 DUCTION CREDIT. 

8 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

9 the deployment project production credit for any taxable 

10 year is an amount equal to the product of— 

11 ‘‘(1) the applicable dollar amount, and 

12 ‘‘(2) the number of metric tons of carbon diox13 ide which is— 

14 ‘‘(A) captured by the taxpayer at quali15 fying deployment projects during the 10-year 

16 period beginning on the date the project begins 

17 delivery of carbon dioxide but not later then 1 

18 year following the date the project is certified 

19 under subsection (d), and 

20 ‘‘(B) delivered by the taxpayer under an el21 igible enhanced oil recovery contract during the 

22 taxable year. 

23 ‘‘(b) APPLICABLE DOLLAR AMOUNT.—For purposes 

24 of this section— 


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1 ‘‘(1) IN GENERAL.—The applicable dollar 

2 amount is the lesser of— 

3 ‘‘(A) the source cap dollar amount, or 

4 ‘‘(B) the amount bid by the taxpayer in 

5 the application submitted under subsection 

6 (d)(2). 

7 ‘‘(2) SOURCE CAP DOLLAR AMOUNT.—For pur8 poses of paragraph (1), the source cap dollar 

9 amount is— 

10 ‘‘(A) $70, in the case of a qualifying de11 ployment project which captures carbon dioxide 

12 emitted in connection with power generation, 

13 ‘‘(B) $25, in the case of a qualifying de14 ployment project— 

15 ‘‘(i) which captures carbon dioxide 

16 emitted in connection with industrial pro17 duction, and 

18 ‘‘(ii) with respect to which the isola19 tion and capture of the carbon dioxide is 

20 integral to the primary function of the 

21 project, and 

22 ‘‘(C) $35, in the case of any other quali23 fying deployment project which captures carbon 

24 dioxide emitted in connection with industrial 

25 production. 


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1 ‘‘(c) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) QUALIFYING DEPLOYMENT PROJECT.— 

3 The term ‘qualifying deployment project’ means a 

4 project— 

5 ‘‘(A) which captures carbon dioxide which 

6 is— 

7 ‘‘(i) emitted in connection with— 

8 ‘‘(I) power generation, or 

9 ‘‘(II) industrial production, and 

10 ‘‘(ii) subject to an eligible enhanced 

11 oil recovery contract, 

12 ‘‘(B) with respect to which carbon dioxide 

13 has not been delivered for reuse, geological se14 questration, or enhanced oil recovery at any 

15 time before carbon dioxide is delivered for use 

16 in a qualified enhanced oil recovery project pur17 suant to the eligible enhanced oil recovery con18 tract, and 

19 ‘‘(C) which is certified by the Secretary 

20 under subsection (d). 

21 ‘‘(2) ELIGIBLE ENHANCED OIL RECOVERY CON22 TRACT.—The term ‘eligible enhanced oil recovery 

23 contract’ has the meaning given such term under 

24 section 48E. 


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1 ‘‘(d) QUALIFYING DEPLOYMENT PROJECT PRO2 GRAM.— 

3 ‘‘(1) IN GENERAL.—Not later than 180 days 

4 after the date of the enactment of this section, the 

5 Secretary, in consultation with the Secretary of En6 ergy, shall establish a qualifying deployment project 

7 program for the certification of qualifying deploy8 ment projects. 

9 ‘‘(2) CERTIFICATION.— 

10 ‘‘(A) IN GENERAL.—Each year, the Sec11 retary shall select projects for certification from 

12 among the applications submitted for such year. 

13 No projects may be certified in any calendar 

14 year after the 15th calendar year in which cer15 tifications have been made under the program. 

16 ‘‘(B) ANNUAL LIMITATION ON CERTIFI17 CATIONS.— 

18 ‘‘(i) IN GENERAL.—The aggregate 

19 amount of carbon dioxide required to be 

20 delivered under eligible enhanced oil recov21 ery contracts for all qualifying deployment 

22 projects certified by the Secretary for any 

23 calendar year shall not exceed 15,000,000 

24 metric tons per year. 


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1 ‘‘(ii) CARRYOVER OF UNUSED LIMITA2 TION.—If the limitation under clause (i) 

3 exceeds the aggregate amount of carbon 

4 dioxide required to be delivered under eligi5 ble enhanced oil recovery contracts for all 

6 qualifying deployment projects certified by 

7 the Secretary in any year, the limitation 

8 under clause (i) for the succeeding year 

9 shall be increased by the amount of such 

10 excess. 

11 ‘‘(C) REQUIREMENTS FOR APPLICATIONS

12 FOR CERTIFICATION.—An application submitted 

13 under subparagraph (A) shall contain— 

14 ‘‘(i) the applicable dollar amount 

15 which the taxpayer bids for the project, 

16 and 

17 ‘‘(ii) such other information as the 

18 Secretary may require in order to make a 

19 determination to accept or reject an appli20 cation for certification. 

21 Any information contained in the application 

22 shall be protected as provided in section 

23 552(b)(4) of title 5, United States Code. 

24 ‘‘(D) CERTIFICATION CRITERIA.—The Sec25 retary shall certify those projects that are deVerDate Mar 15 2010 02:33 Jul 02, 2011 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1321.IS S1321

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1 termined by bid to provide the largest delivery 

2 of carbon dioxide for each dollar of credit ex3 pected to be allowed under subsection (a) in 

4 connection with such project. 

5 ‘‘(E) COORDINATION WITH PIONEER

6 PROJECT CREDIT.—The Secretary shall not cer7 tify any project under this subsection if such 

8 project has been certified under section 48E. 

9 ‘‘(3) SUSPENSION.—The Secretary shall not 

10 certify any project under this subsection during the 

11 1-year period after which an affirmative determina12 tion is made under section 105(b)(2)(B)(ii) of the 

13 Practical Energy Plan Act of 2011. 

14 ‘‘(e) OTHER RULES.— 

15 ‘‘(1) TRANSFER OF CREDIT.— 

16 ‘‘(A) IN GENERAL.—A taxpayer who 

17 makes a qualified investment may transfer the 

18 credit allowed under this section with respect a 

19 qualifying deployment project through an as20 signment to any party to the eligible enhanced 

21 oil recovery contract with respect to such quali22 fying deployment project. Such transfer may be 

23 revoked only with the consent of the Secretary. 

24 ‘‘(B) REGULATIONS.—The Secretary shall 

25 prescribe such regulations as necessary to enVerDate Mar 15 2010 02:33 Jul 02, 2011 Jkt 099200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1321.IS S1321

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1 sure that any credit transferred under subpara2 graph (A) is claimed once and not reassigned 

3 by such other person. 

4 ‘‘(2) RECAPTURE.—The Secretary shall provide 

5 for recapturing the benefit of any credit allowable 

6 under subsection (a) with respect to any project 

7 which ceases to be a qualifying deployment project. 

8 ‘‘(3) ELECTION NOT TO CLAIM CREDIT.—This 

9 section shall not apply to a taxpayer for any taxable 

10 year if such taxpayer elects to have this section not 

11 apply for such taxable year.’’. 

12 (B) CREDIT TO BE PART OF GENERAL

13 BUSINESS CREDIT.—Subsection (b) of section 

14 38 of such Code, as amended by subsection 

15 (a)(2), is amended by striking ‘‘plus’’ at the 

16 end of paragraph (36), by striking the period at 

17 the end of paragraph (37) and inserting ‘‘, 

18 plus’’, and by adding at the end the following 

19 new paragraph: 

20 ‘‘(38) the deployment project production credit 

21 determined under section 45T(a).’’. 

22 (C) COORDINATION WITH SECTION 45Q.— 

23 Paragraph (8) of section 45Q(d) of such Code, 

24 as added by subsection (a)(2), is amended by 

25 inserting ‘‘or 45T’’ after ‘‘45S’’. 


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1 (D) CONFORMING AMENDMENTS.— 

2 (i) The table of sections for subpart D 

3 of part IV of subchapter A of chapter 1 of 

4 such Code, as amended by subsection 

5 (a)(2) is amended by inserting after the 

6 item relating to section 45S the following 

7 new item: 

‘‘Sec. 45T. Deployment project carbon dioxide production credit.’’. 

8 (ii) Section 6501(m) of such Code is 

9 amended by inserting ‘‘45T(e)(3),’’ after 

10 ‘‘45S(c)(4),’’. 

11 (E) EFFECTIVE DATE.—The amendments 

12 made by this paragraph shall apply to taxable 

13 years beginning after the date of the enactment 

14 of this Act. 

15 (F) SECRETARIAL REVIEW OF SOURCE CAP

16 DOLLAR AMOUNTS.— 

17 (i) IN GENERAL.—Each year, the Sec18 retary shall review the source cap dollar 

19 amounts under section 45T(b)(2) to deter20 mine whether such amounts are appro21 priate given the technological advancement. 

22 (ii) REPORT.—If the Secretary deter23 mines that such source cap dollar amount 

24 should be adjusted, the Secretary shall 

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1 ommended modifications to such dollar 

2 amounts. 

3 (2) REVENUE GENERATING FAIL-SAFE.— 

4 (A) PROJECTIONS.—Beginning on the date 

5 that is 4 years after the date of the enactment 

6 of this Act, and on an annual basis thereafter, 

7 the Secretary of the Treasury (or the Sec8 retary’s delegate), in consultation with the Se9 curities and Exchange Commission and the Sec10 retary of Energy, shall— 

11 (i) project the present value of— 

12 (I) the expected increase in Fed13 eral revenues (from income taxes, roy14 alties, and other sources) attributable 

15 to increases in oil production from en16 hanced oil recovery methods using 

17 carbon dioxide from qualifying pioneer 

18 projects (as defined in section 48E of 

19 the Internal Revenue Code) and quali20 fying deployment projects (as defined 

21 in section 45T of such Code), and 

22 (II) the revenue costs associated 

23 with the credits allowed under sec24 tions 45S, 45T, and 48E of such 

25 Code, and 


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1 (ii) project— 

2 (I) the average well head price 

3 for oil produced in the contiguous 48 

4 States for the 11-year period begin5 ning with the year in which such pro6 jection is made, and 

7 (II) the cost of oil recovery meth8 ods used in qualified enhanced oil re9 covery projects (as defined in section 

10 43(c)(2) of the Internal Revenue Code 

11 of 1986), as compared to conventional 

12 oil recovery methods. 

13 (B) DETERMINATION OF UNSUSTAINABLE

14 REVENUE.— 

15 (i) IN GENERAL.—Using the projec16 tions under subparagraph (A), the Sec17 retary (or the Secretary’s delegate) shall 

18 determine whether Federal revenues gen19 erated by qualified enhanced oil recovery 

20 projects (as so defined) eligible for benefits 

21 under the amendments made by this sec22 tion are insufficient to sustain the cost of 

23 such benefits. 

24 (ii) AFFIRMATIVE DETERMINATION.— 

25 The Secretary shall make an affirmative 


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1 determination under this subparagraph if 

2 the Secretary finds that— 

3 (I) the projected revenue costs 

4 determined under subparagraph 

5 (A)(i)(II) exceed the projected revenue 

6 increases determined under subpara7 graph (A)(i)(I), or 

8 (II) the methods used to recover 

9 oil through qualified enhanced oil re10 covery projects (as so defined) will not 

11 be cost-effective due to the projected 

12 well head price for oil under subpara13 graph (A)(ii)(II). 

14 (iii) SPECIAL RULE.—If the Secretary 

15 makes an affirmative determination under 

16 this subparagraph with respect to any 

17 year, the Secretary shall not make a deter18 mination under this subparagraph for the 

19 immediately succeeding taxable year. 

20 (C) SUSPENSION OF DEPLOYMENT CREDIT

21 AND REPORT TO CONGRESS.—If the Secretary 

22 makes an affirmative determination under sub23 paragraph (B)— 

24 (i) no certifications may be made with 

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1 ment credit under section 45T of the In2 ternal Revenue Code of 1986 for the 1- 

3 year period following the date of such de4 termination, and 

5 (ii) the Secretary (or the Secretary’s 

6 delegate) shall submit to Congress a report 

7 detailing the findings and projections that 

8 led to such determination. 

9 (c) LOAN GUARANTEES FOR CARBON DIOXIDE

10 TRUNKLINES.—Section 1703(b) of the Energy Policy Act 

11 of 2005 (42 U.S.C. 16513(b)) is amended by adding at 

12 the end the following new paragraph: 

13 ‘‘(11) Qualified carbon dioxide trunklines (as 

14 defined in section 48E(c)(3) of the Internal Revenue 

15 Code of 1986).’’. 

16 SEC. 102. RESTORING GULF OF MEXICO OIL PRODUCTION. 

17 (a) DEFINITION OF COVERED APPLICATION.—In this 

18 section, the term ‘‘covered application’’ means an applica19 tion for a permit to drill under an oil and gas lease under 

20 the Outer Continental Shelf Lands Act (43 U.S.C. 1331 

21 et seq.) in effect on the date of enactment of this Act, 

22 that— 

23 (1) represents a resubmission of an approved 

24 permit to drill (including an application for a permit 


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1 to sidetrack) that was approved by the Secretary be2 fore May 27, 2010; and 

3 (2) is received by the Secretary after October 

4 12, 2010, and before the end of the 15-day period 

5 beginning on the date of enactment of this Act. 

6 (b) SCHEDULE REQUIRED.—Not later than 30 days 

7 after the date of enactment of this Act, the Secretary of 

8 the Interior shall submit to the Committee on Energy and 

9 Natural Resources of the Senate and the Committee on 

10 Natural Resources of the House of Representatives a 

11 schedule that provides that— 

12 (1) not later than 75 days after the date of en13 actment of this Act, final decisions shall be issued 

with respect to not less than 1 14 ⁄2 of the covered appli15 cations; and 

16 (2) not later than 135 days after the date of 

17 enactment of this Act, final decisions shall be issued 

18 with respect to all of the covered applications. 

19 (c) DIRECTED SUSPENSION.—A lease under which a 

20 covered application is submitted to the Secretary of the 

21 Interior shall be considered to be in directed suspension 

22 during the period beginning May 27, 2010, and ending 

23 on the date on which the Secretary issues a final decision 

24 on the application, if the Secretary does not issue a final 

25 decision on the application before the end of the 120-day 


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1 period beginning on the date of enactment of this Act, in 

2 the case of a covered application submitted before the date 

3 of enactment of this Act or before the end of the 15-day 

4 period beginning on the date of enactment of this Act. 

5 SEC. 103. SAFETY ASSESSMENTS. 

6 (a) REPORT TO CONGRESS.— 

7 (1) DEFINITION OF COVERED PERMIT.—In this 

8 subsection, the term ‘‘covered permit’’ means— 

9 (A) each of the first 10 drilling permits for 

10 leases on the Atlantic coast issued after the 

11 date of enactment of this Act; 

12 (B) each of the first 10 drilling permits for 

13 leases on the Pacific coast issued after the en14 actment of this Act; 

15 (C) each of the first 10 drilling permits for 

16 leases on the Arctic coast issued after the en17 actment of this Act; and 

18 (D) a permit to drill in a new area off the 

19 coast of a State as requested by the governor 

20 of the State or the Governor of a State with 

21 contiguous waters. 

22 (2) SAFETY ASSESSMENT.—At least 30 days 

23 before the issuance of a covered permit, the Sec24 retary shall submit to the Committee on Energy and 

25 Natural Resources of the Senate and the Committee 


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1 on Natural Resources of the House a Representa2 tives a report that includes an assessment of— 

3 (A) critical safety system preparedness, in4 cluding blowout prevention; and 

5 (B) oil spill response and containment pre6 paredness. 

7 (b) SPILL RESPONSE ASSESSMENT.—Section 11(c) 

8 of the Outer Continental Shelf Lands Act (43 U.S.C. 

9 1340(c)) is amended by adding at the end the following: 

10 ‘‘(5) SPILL RESPONSE ASSESSMENT.— 

11 ‘‘(A) IN GENERAL.—The Secretary shall 

12 require that each exploration plan submitted 

13 after the date of enactment of the Practical En14 ergy Plan Act of 2011 include a third-party re15 viewed response plan that describes the means 

16 and timeline for containment and termination 

17 of an ongoing discharge of oil (other than a de 

18 minimis discharge, as determined by the Sec19 retary) at the depth at which the exploration, 

20 development, or production authorized under 

21 the exploration plan is to take place. 

22 ‘‘(B) TECHNOLOGICAL FEASIBILITY.—Be23 fore determining whether to approve an explo24 ration plan that includes a response plan under 

25 subparagraph (A), the Secretary shall certify 


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1 the technological feasibility of the methods pro2 posed to be used under the response plan, as 

3 demonstrated by the lessee through simulation, 

4 demonstration, or other means.’’. 

5 SEC. 104. RESTORING OIL AND GAS LEASE SALES. 

6 (a) DEFINITIONS.—In this section: 

7 (1) ENVIRONMENT IMPACT STATEMENT FOR

8 THE 2007–2012 5-YEAR OCS PLAN.—The term ‘‘Envi9 ronmental Impact Statement for the 2007-2012 5- 

10 Year OCS Plan’’ means the Final Environmental 

11 Impact Statement for the Outer Continental Shelf 

12 Oil and Gas Leasing Program: 2007-2012 prepared 

13 by the Secretary and dated April 2007. 

14 (2) MULTI-SALE ENVIRONMENTAL IMPACT

15 STATEMENT.—The term ‘‘Multi-Sale Environmental 

16 Impact Statement’’ means the Environmental Im17 pact Statement for Proposed OCS Oil and Gas 

18 Lease Sales 193, 204, 205, 206, 207, 208, 209, 

19 210, 212, 213, 215, 216, and 222 prepared by the 

20 Secretary and dated September 2008. 

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

22 the Secretary of the Interior. 

23 (b) REQUIREMENT TO CONDUCT CERTAIN PRO24 POSED OIL AND GAS LEASE SALES.— 


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1 (1) IN GENERAL.—As soon as practicable, but 

2 not later than 1 year, after the date of enactment 

3 of this Act, in accordance with section 8 of the 

4 Outer Continental Shelf Lands Act (43 U.S.C. 

5 1337), the Secretary shall conduct— 

6 (A) offshore oil and gas lease sale 216; 

7 (B) offshore oil and gas lease sale 218; 

8 (C) offshore oil and gas lease sale 220; and 

9 (D) offshore oil and gas lease sale 222. 

10 (2) PROHIBITION ON CONFLICTS WITH MILI11 TARY OPERATIONS.—The Secretary shall not make 

12 any tract available for leasing under paragraph 

13 (1)(C) if the President, acting through the Secretary 

14 of Defense, determines that drilling activity on the 

15 tract would create an unreasonable conflict with 

16 military operations. 

17 (3) ENVIRONMENTAL REVIEW.—For the pur18 poses of each of the lease sales authorized under 

19 subparagraphs (A), (B), and (D) of paragraph (1), 

20 the Environmental Impact Statement for the 2007– 

21 2012 5-Year OCS Plan and the Multi-Sale Environ22 mental Impact Statement shall be considered to sat23 isfy the requirements of the National Environmental 

24 Policy Act of 1969 (42 U.S.C. 4321 et seq.). 


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1 SEC. 105. EQUAL TREATMENT OF PERMITS IN ALASKA. 

2 Section 328 of the Clean Air Act (42 U.S.C. 7627) 

3 is amended— 

4 (1) in subsection (a)(1)— 

5 (A) in the first sentence, by inserting be6 fore the period at the end the following: ‘‘, pro7 vided that any air pollution requirements estab8 lished for Arctic outer Continental Shelf sources 

9 shall only apply to impacts located onshore as 

10 of the date of enactment of the Practical En11 ergy Plan Act of 2011’’; and 

12 (B) in the fourth sentence, by inserting 

13 ‘‘and this Act’’ before the period at the end; 

14 and 

15 (2) in the first sentence of subsection (b)— 

16 (A) by striking ‘‘Gulf Coast’’; and 

17 (B) by inserting ‘‘Alaska,’’ before ‘‘ and 

18 Alabama’’. 

19 SEC. 106. OFFSHORE RESOURCE REVIEW AND SEISMIC SUR20 VEYS. 

21 (a) CHUKCHI SEA AND BEAUFORT SEA.—Not later 

22 than 180 days after the date of enactment of this Act, 

23 the Secretary of the Interior shall submit to the Com24 mittee on Energy and Natural Resources of the Senate 

25 and the Committee on Natural Resources of the House 

26 of Representatives the results of a study of oil and natural 


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1 gas resources in the Chukchi Sea and Beaufort Sea that 

2 includes— 

3 (1) resource assessments; 

4 (2) an assessment of preparedness for accident 

5 response; 

6 (3) targets for expanding oil and natural gas 

7 production over the 5-, 10-, 15-, and 20-year periods 

8 beginning on the termination date of leases in effect 

9 on the date of enactment of this Act; and 

10 (4) a schedule for new lease sales required to 

11 meet production targets. 

12 (b) STATE SUBDIVISION OF OUTER CONTINENTAL

13 SHELF PLANNING AREA.—At the request of a Governor 

14 of a State, the Secretary shall conduct, and submit to the 

15 State the results of, a study of any State subdivision of 

16 an outer Continental Shelf planning area that includes— 

17 (1) resource assessments; 

18 (2) an assessment of preparedness for accident 

19 response; 

20 (3) targets for expanding oil and natural gas 

21 production over 10-, 15-, and 20-year periods; and 

22 (4) a nonbinding schedule for new lease sales 

23 required to meet production targets. 


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1 (c) SEISMIC SURVEYS.—Section 18 of the Outer Con2 tinental Shelf Lands Act (43 U.S.C. 1344) is amended 

3 by adding at the end the following: 

4 ‘‘(i) SEISMIC SURVEYS.— 

5 ‘‘(1) IN GENERAL.—Not later than 360 days 

6 after the date of enactment of this subsection, the 

7 Secretary shall issue regulations providing for— 

8 ‘‘(A) issuance by the Secretary of seismic 

9 surveying cost credits for the provision of data 

10 from seismic surveying of the outer Continental 

11 Shelf; and 

12 ‘‘(B) use of the credits by a person to 

13 whom the cost credits were issued under sub14 paragraph (A) or transferred under paragraph 

15 (4), for payment of bonus bids owed by the per16 son for oil and gas lease sales under this section 

17 in the planning area in which the seismic survey 

18 was conducted. 

19 ‘‘(2) ISSUANCE.—The regulations issued under 

20 paragraph (1) shall provide for the issuance of cred21 its on the date of the submission to the Secretary of 

22 the data produced by seismic surveying authorized 

23 under section 11 of any area for which the most re24 cent seismic data held by the Secretary at the time 

25 of the survey is at least 10 years old. 


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1 ‘‘(3) VALUE.—The value of the cost credits 

2 issued under paragraph (1)(A) shall be equal to 50 

3 percent of the costs incurred in conducting seismic 

4 surveying to produce the data for which the credits 

5 are issued. 

6 ‘‘(4) TRANSFER.—A person to whom a credit is 

7 issued by the Secretary— 

8 ‘‘(A) may transfer the credit once; and 

9 ‘‘(B) shall notify the Secretary of the 

10 transfer under subparagraph (A). 

11 ‘‘(5) EXPIRATION.—A seismic surveying cost 

12 credit shall expire 10 years after the date of submis13 sion of the date for which the credit is issued.’’. 

14 Subtitle B—Vehicle Efficiency 

15 SEC. 111. FUEL EFFICIENCY PLANNING. 

16 (a) STANDARDS FOR LIGHT VEHICLES.—Section 

17 32902 of title 49, United States Code, is amended— 

18 (1) in subsection (a), by inserting ‘‘, reflecting 

19 at least a 4 percent annual increase beginning in 

model year 2017 (rounded to the nearest 1 20 ⁄10 mile 

21 per gallon)’’ before the period at the end; 

22 (2) in subsection (b)— 

23 (A) in paragraph (2)— 

24 (i) in subparagraph (A)— 


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1 (I) in the subparagraph heading, 

2 by striking ‘‘2020’’ and inserting 

3 ‘‘2016’’; 

4 (II) by striking ‘‘2020’’ and in5 serting ‘‘2016’’; and 

6 (III) by striking ‘‘35’’ and insert7 ing ‘‘34.1’’; 

8 (ii) in subparagraph (B)— 

9 (I) in the subparagraph heading, 

10 by striking ‘‘2021’’ and insert ‘‘2017’’; 

11 (II) by striking ‘‘2021’’ and in12 serting ‘‘2017’’; and 

13 (III) by inserting ‘‘, reflecting at 

14 least a 4 percent annual increase for 

15 each model year’’ before the period at 

16 the end; and 

17 (iii) in subparagraph (C)— 

18 (I) by striking ‘‘subparagraph 

19 (A)’’ and inserting ‘‘subparagraphs 

20 (A) and (B)’’; 

21 (II) by striking ‘‘and ending with 

22 model year 2020’’; and 

23 (III) by adding at the end the 

24 following: ‘‘The projected aggregate 

25 level of average fuel economy for 


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1 model year 2017 and each succeeding 

2 model year shall reflect at least a 4 

3 percent increase from the level for the 

4 prior model year (rounded to the 

nearest 1 5 ⁄10 mile per gallon).’’; and 

6 (B) by adding at the end the following: 

7 ‘‘(5) UNIFIED REGULATORY REQUIREMENTS.— 

8 Regulations under this subsection and amendments 

9 to regulations under subsection (c) shall, to the max10 imum extent practicable, be promulgated (including 

11 through joint rulemaking), coordinated, and imple12 mented in conjunction with pollutant regulations 

13 promulgated by the the Administrator of the Envi14 ronmental Protection Agency.’’; 

15 (3) in subsection (c)— 

16 (A) by inserting ‘‘(1)’’ before ‘‘The Sec17 retary’’; 

18 (B) by striking ‘‘that model year.’’ and in19 serting the following: ‘‘model year, including to 

20 a level lower than a 4 percent annual increase 

21 if the Secretary determines the standards pre22 scribed under subsection (b) for each model 

23 year— 

24 ‘‘(A) are technologically unachievable; 


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1 ‘‘(B) cannot be achieved without materially re2 ducing the overall safety of automobiles manufac3 tured or sold in the United States; or 

4 ‘‘(C) is shown, by clear and convincing evidence, 

5 not to be cost effective. 

6 ‘‘(2) If a standard reflecting a level lower than a 4 

7 percent annual increase is prescribed for a model year 

8 under subsection (b), such standard shall be the maximum 

9 standard that— 

10 ‘‘(A) is technologically achievable; 

11 ‘‘(B) can be achieved without materially reduc12 ing the overall safety of automobiles manufactured 

13 or sold in the United States; and 

14 ‘‘(C) is cost effective.’’; 

15 (C) by striking ‘‘Section 553’’ and insert16 ing the following: 

17 ‘‘(3) Section 553’’; and 

18 (D) by adding at the end the following: 

19 ‘‘(4) Not later than 90 days before issuing an amend20 ed standard that would lower the fuel economy standards 

21 below the level prescribed under subsection (b), the Sec22 retary shall— 

23 ‘‘(A) provide written notification to the Com24 mittee on Energy and Commerce of the House of 

25 Representatives, the Committee on Commerce, 


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1 Science, and Transportation of the Senate, and the 

2 Committee on Energy and Natural Resources of the 

3 Senate, regarding the amendments made to the fuel 

4 economy standards prescribed in subsection (b); and 

5 ‘‘(B) make publicly available non-proprietary 

6 documentation regarding the amendment decision’’; 

7 and 

8 (4) in subsection (f)— 

9 (A) by striking ‘‘When deciding’’ and in10 serting ‘‘(1) In determining’’; 

11 (B) by inserting ‘‘cost-benefit consider12 ations,’’ after ‘‘economic practicability,’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(2) In conducting a cost-benefit analysis under 

15 paragraph (1), the Secretary of Transportation (in con16 sultation with the Secretary of Energy, the Secretary of 

17 State, and the Secretary of Defense) shall take into ac18 count the total value to the United States of reduced pe19 troleum use, including the value of reducing external costs 

20 of petroleum use, using a value for such costs equal to 

21 50 percent of the value of a gallon of gasoline saved or 

22 the amount determined in an analysis of the external costs 

23 of petroleum use that considers— 

24 ‘‘(A) value to consumers; 

25 ‘‘(B) economic security; 


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1 ‘‘(C) national security; 

2 ‘‘(D) foreign policy; 

3 ‘‘(E) the impact of oil use on— 

4 ‘‘(i) sustained cartel rents paid to foreign 

5 suppliers; 

6 ‘‘(ii) long-run potential gross domestic 

7 product due to higher normal-market oil price 

8 levels, including inflationary impacts; 

9 ‘‘(iii) import costs, wealth transfers, and 

10 potential gross domestic product due to in11 creased trade imbalances; 

12 ‘‘(iv) import costs and wealth transfers 

13 during oil shocks; 

14 ‘‘(v) macroeconomic dislocation and adjust15 ment costs during oil shocks; 

16 ‘‘(vi) the cost of existing energy security 

17 policies, including the management of the Stra18 tegic Petroleum Reserve; 

19 ‘‘(vii) the timing and severity of the oil 

20 peaking problem; 

21 ‘‘(viii) the risk, probability, size, and dura22 tion of oil supply disruptions; 

23 ‘‘(ix) OPEC strategic behavior and long24 run oil pricing; 


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1 ‘‘(x) the short term elasticity of energy de2 mand and the magnitude of price increases re3 sulting from a supply shock; 

4 ‘‘(xi) oil imports, military costs, and re5 lated security costs, including intelligence, 

6 homeland security, sea lane security and infra7 structure, and other military activities; 

8 ‘‘(xii) oil imports, diplomatic and foreign 

9 policy flexibility, and connections to geopolitical 

10 strife, terrorism, and international development 

11 activities; and 

12 ‘‘(xiii) the cost of pollutants; 

13 ‘‘(F) the impact of the oil or energy intensity 

14 of the United States economy on the sensitivity of 

15 the economy to oil price changes, including the mag16 nitude of gross domestic product losses in response 

17 to short-term price shocks or long-term price in18 creases; 

19 ‘‘(G) the impact of United States payments for 

20 oil imports on political, economic, and military devel21 opments in unstable or unfriendly oil exporting 

22 countries; 

23 ‘‘(H) the uninternalized costs of pipeline and 

24 storage oil seepage, and for risk of oil spills from 


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1 production, handling, transport, and related land2 scape damage; and 

3 ‘‘(I) additional relevant factors, as determined 

4 by the Secretary in consultation with the Secretary 

5 of Energy, the Administrator of the Environmental 

6 Protection Agency, the Secretary of State, the Sec7 retary of Defense, the Secretary of Homeland Secu8 rity, and the Director of National Intelligence. 

9 ‘‘(3) In considering the value to consumers of a gallon 

10 of gasoline saved, the Secretary of Transportation may not 

11 use a value that is less than the greatest of— 

12 ‘‘(A) the average national cost of a gallon of 

13 gasoline sold in the United States during the 12- 

14 month period ending on the date on which the new 

15 fuel economy standard is proposed; 

16 ‘‘(B) the most recent weekly estimate by the 

17 Energy Information Administration of the Depart18 ment of Energy of the average national cost of a 

19 gallon of gasoline (all grades) sold in the United 

20 States; or 

21 ‘‘(C) the gasoline prices projected by the En22 ergy Information Administration for the 20-year pe23 riod beginning in the year following the year in 

24 which the standards are established.’’. 


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1 (b) STANDARDS FOR MEDIUM- AND HEAVY-DUTY

2 VEHICLES.—Section 32902(k) of title 49, United States 

3 Code, is amended— 

4 (1) in paragraph (1)— 

5 (A) in subparagraph (C), by striking 

6 ‘‘and’’ at the end; 

7 (B) in subparagraph (D), by striking the 

8 period at the end and inserting ‘‘; and’’; and 

9 (C) by adding at the end the following: 

10 ‘‘(E) greatest achievable fuel efficiency im11 provement targets for rules pertaining to com12 mercial medium- and heavy-duty vehicles and 

13 work trucks, taking into consideration the na14 tional security and economic benefits of reduced 

15 petroleum consumption and relevant factors in 

16 the manufacture and work accomplished of such 

17 vehicles.’’; 

18 (2) in paragraph (2)— 

19 (A) by striking ‘‘Not later’’ and inserting 

20 the following: 

21 ‘‘(A) IMPLEMENTATION.—Not later’’; 

22 (B) by striking ‘‘fuel economy standards’’ 

23 and inserting ‘‘fuel efficiency standards (taking 

24 into consideration the national security and ecoVerDate Mar 15 2010 02:33 Jul 02, 2011 Jkt 099200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1321.IS S1321

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1 nomic benefits of reduced petroleum consump2 tion)’’; 

3 (C) by striking ‘‘The Secretary may’’ and 

4 inserting the following: 

5 ‘‘(B) SEPARATE STANDARDS.—The Sec6 retary may’’; 

7 (D) in subparagraph (B), as designated by 

8 subparagraph (C) of this paragraph, by adding 

9 at the end the following: ‘‘Recognizing the dif10 ferentiated level of technological development 

11 and data available between classes, as identified 

12 by the National Academies of Science report 

13 ‘Technologies and Approaches to Reducing the 

14 Fuel Consumption of Medium- and Heavy-Duty 

15 Vehicles,’ the Secretary may implement regula16 tions for certain vehicle classes and vehicle com17 ponents authorized under this subsection, as 

18 designated by the Secretary, on an accelerated 

19 basis.’’; and 

20 (E) by adding at the end the following: 

21 ‘‘(C) APPLICABILITY; ADJUSTMENTS.— 

22 Standards issued under this subsection— 

23 ‘‘(i) may apply to— 

24 ‘‘(I) vehicle components; 


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1 ‘‘(II) whole vehicles based on 1 

2 or more attributes; or 

3 ‘‘(III) any combination of (I) and 

4 (II); 

5 ‘‘(ii) shall, subject to paragraph (3)— 

6 ‘‘(I) be implemented for vehicles 

7 manufactured for sale in the United 

8 States during or before model year 

9 2017; and 

10 ‘‘(II) allow for fuel efficiency reg11 ulation of vehicle components or whole 

12 vehicles before such model year; and 

13 ‘‘(iii) shall periodically, but not less 

14 frequently than every 4 model years, be ad15 justed to achieve the maximum techno16 logically feasible fuel efficiency improve17 ments (taking into account considerations 

18 of oil import dependence) which do not 

19 materially affect vehicle safety and that 

20 are cost effective. 

21 ‘‘(D) COST EFFECTIVE CRITERIA.—As 

22 used in subparagraph (C)(iii), the term ‘cost ef23 fective’ shall be subject to considerations estab24 lished under subsection (f) and other criteria 

25 determined by the Secretary; 


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1 ‘‘(E) WAIVER; NOTIFICATION; REVIEW.— 

2 The Secretary may waive adjustments to the 

3 standards issued under this subsection if the 

4 Secretary determines that any such adjustment 

5 is not necessary to achieve the maximum tech6 nologically feasible fuel efficiency improvements. 

7 If such a determination is made, the Secretary 

8 shall provide written notification to the Com9 mittee on Energy and Commerce of the House 

10 of Representatives, the Committee on Com11 merce, Science, and Transportation of the Sen12 ate, and the Committee on Energy and Natural 

13 Resources of the Senate, not later than 180 

14 days before the day that is 4 years after the 

15 day on which the most recent standards came 

16 into effect. The Secretary shall review any de17 termination made under this subparagraph 

18 every 2 years.’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(4) UNIFIED REGULATORY REQUIREMENTS.— 

21 Regulations issued pursuant to paragraph (2) shall, 

22 to the maximum extent practicable, be established 

23 (including through joint rulemaking), coordinated, 

24 and implemented in conjunction with pollutant reguVerDate Mar 15 2010 02:33 Jul 02, 2011 Jkt 099200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1321.IS S1321

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1 lations administered by the Environmental Protec2 tion Agency.’’. 

3 Subtitle C—Fuel Choice 

4 SEC. 121. COMPETITIVE PRODUCTION INCENTIVES FOR AD5 VANCED RENEWABLE FUELS. 

6 Section 942 of the Energy Policy Act of 2005 (42 

7 U.S.C. 16251) is amended— 

8 (1) in the section heading, by striking ‘‘CELLU9 LOSIC BIOFUELS’’ and inserting ‘‘RENEWABLE

10 FUELS’’; 

11 (2) by striking ‘‘cellulosic biofuels’’ each place 

12 it appears (other than subsection (b)(1)) and insert13 ing ‘‘renewable fuels’’; 

14 (3) in subsection (a), by striking ‘‘biofuels’’ 

15 each place it appears and inserting ‘‘renewable 

16 fuels’’; 

17 (4) in subsection (b)— 

18 (A) by striking paragraph (1); 

19 (B) by redesignating paragraph (2) as 

20 paragraph (1); and 

21 (C) by inserting after paragraph (1) (as so 

22 redesignated) the following: 

23 ‘‘(2) RENEWABLE FUEL.— 

24 ‘‘(A) IN GENERAL.—The term ‘renewable 

25 fuel’ has the meaning given the term in section 


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

2 7545(o)(1)). 

3 ‘‘(B) INCLUSION.—The term ‘renewable 

4 fuel’ includes algae. 

5 ‘‘(C) EXCLUSION.—The term ‘renewable 

6 fuel’ does not include grain.’’; and 

7 (5) in subsection (f), by inserting ‘‘for each of 

8 fiscal years 2012 through 2016’’ before the period at 

9 the end. 

10 SEC. 122. FUEL OPTIONS THROUGH THE AVAILABILITY OF 

11 DUAL FUELED VEHICLES AND LIGHT DUTY 

12 TRUCKS. 

13 Chapter 329 of title 49, United States Code, is 

14 amended by adding at the end the following: 

15 ‘‘SEC. 32920. FUEL OPTIONS FOR TRANSPORTATION. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) ADVANCED ALTERNATIVE FUEL.—The 

18 term ‘advanced alternative fuel’ means— 

19 ‘‘(A) a mixture containing— 

20 ‘‘(i) at least 85 percent denatured eth21 anol by volume (or a lower percentage pre22 scribed by the Secretary pursuant to sec23 tion 32901(b)); and 

24 ‘‘(ii) gasoline or other fuels; 

25 ‘‘(B) a mixture containing— 


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1 ‘‘(i) at least 70 percent methanol by 

2 volume (or a lower percentage prescribed 

3 by the Secretary pursuant to section 

4 32901(b)); and 

5 ‘‘(ii) gasoline and other fuels; and 

6 ‘‘(C) other alcohols or liquid fuels certified 

7 by the Secretary pursuant to subsection 

8 (b)(2)(B)(i). 

9 ‘‘(2) ADVANCED ALTERNATIVE FUEL BLEND.— 

10 The term ‘advanced alternative fuel blend’ means a 

11 liquid fuel that contains gasoline blended with a per12 centage of advanced alternative fuel certified under 

13 subsection (b)(2). 

14 ‘‘(3) ANNUAL COVERED INVENTORY.—The term 

15 ‘annual covered inventory’ means the number of ve16 hicles that a manufacturer, during a given calendar 

17 year, manufactures in the United States or imports 

18 from outside of the United States, for sale in the 

19 United States. 

20 ‘‘(4) FUEL CHOICE-ENABLING VEHICLE.—The 

21 term ‘fuel choice-enabling vehicle’ means a light-duty 

22 vehicle warranted by its manufacturer to operate 

23 on— 

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1 hols by volume (or a lower percentage pre2 scribed by the Secretary pursuant to section 

3 32901(b)), including drop-in liquid fuel for use 

4 in gasoline engines; 

5 ‘‘(B) an advanced alternative fuel blend; 

6 ‘‘(C) natural gas; 

7 ‘‘(D) hydrogen; 

8 ‘‘(E) batteries; 

9 ‘‘(F) a hybrid electric engine; 

10 ‘‘(G) a mixture of biodiesel and diesel fuel 

11 meeting the standard established by the Amer12 ican Society for Testing and Materials or under 

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

14 7545(u)) for fuel containing 5 percent biodiesel 

15 (commonly known as ‘B20’); or 

16 ‘‘(H) any other fuel or means of powering 

17 covered vehicles prescribed by the Secretary, by 

18 regulation, that contains not more than 10 per19 cent petroleum, by volume. 

20 ‘‘(5) LIGHT-DUTY VEHICLE.—The term ‘light21 duty vehicle’ means a 4-wheeled vehicle manufac22 tured primarily for use on public streets, roads, and 

23 highways with a gross vehicle weight of less than 

24 10,000 pounds. 

25 ‘‘(b) FUEL OPTIONS STANDARD.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (3), each light-duty vehicle manufacturer’s an3 nual covered inventory shall be comprised of— 

4 ‘‘(A) not less than 50 percent fuel choice5 enabling vehicles in model years 2015, 2016, 

6 and 2017; and 

7 ‘‘(B) not less than 90 percent fuel choice8 enabling vehicles in model year 2018 and each 

9 subsequent model year. 

10 ‘‘(2) CERTIFICATION.— 

11 ‘‘(A) IN GENERAL.—The Secretary of 

12 Transportation, in consultation with the Admin13 istrator of the Environmental Protection Agen14 cy, shall certify the maximum feasible levels of 

15 advanced alternative fuel blend possible based 

16 on technological feasibility, economic practi17 cality, consumer cost impacts, maximizing the 

18 potential number of domestic nonpetroleum 

19 feedstock sources, and reducing foreign oil im20 ports. 

21 ‘‘(B) CONTENTS.—The certification under 

22 subparagraph (A) should include— 

23 ‘‘(i) the type and blend of advanced 

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1 hicles qualifying as a fuel choice-enabling 

2 vehicle; 

3 ‘‘(ii) the type and blend of advanced 

4 alternative fuel that can be utilized by spe5 cific vehicles in use as of the date of the 

6 enactment of the Practical Energy Plan 

7 Act of 2011; and 

8 ‘‘(iii) the type and blend of advanced 

9 alternative fuel that can be utilized by new 

10 and existing components of the Nation’s 

11 transportation fueling infrastructure for 

12 fuel-choice enabled vehicles. 

13 ‘‘(C) TRIGGER.—Upon completion of the 

14 certification under subparagraph (B)(i), new 

15 light-duty vehicles may not be classified as fuel 

16 choice-enabling vehicles unless the manufac17 turer warrants that such vehicles can be oper18 ated on fuels described in subparagraphs (A) 

19 and (B) of subsection (a)(4). 

20 ‘‘(3) DROP-IN FUEL.—Any drop-in liquid fuel 

21 for use in gasoline engines that is described in sec22 tion (a)(4)(H) shall also be warranted to operate 

23 with fuel described in subparagraphs (A) and (B) of 

24 subsection (a)(4) pursuant to paragraph (2)(C). 


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1 ‘‘(4) SMALL MANUFACTURER EXEMPTION.—At 

2 the request of a manufacturer, the Secretary of 

3 Transportation shall exempt the manufacturer from 

4 the requirement described in paragraph (1) if the 

5 manufacturer’s annual covered inventory is fewer 

6 than 10,000. 

7 ‘‘(5) CREDIT TRADING AMONG MANUFACTUR8 ERS.— 

9 ‘‘(A) IN GENERAL.—The Secretary may es10 tablish, by regulation, a fuel options standard 

11 credit trading program to allow manufacturers 

12 whose annual covered inventory exceeds the re13 quirement described in paragraph (1) to earn 

14 credits to be sold to manufacturers that are un15 able to achieve the prescribed requirements. 

16 ‘‘(B) DUAL FUEL CREDIT.—Beginning in 

17 model year 2018, any vehicle used to qualify for 

18 the fuel options standard under this subsection 

19 cannot be used to receive the dual fuel credit 

20 under section 32903. 

21 ‘‘(c) FUEL CHOICE COMPARISON TOOL.—The Sec22 retary of Transportation, in consultation with the Sec23 retary of Energy and the Administrator of the Environ24 mental Protection Agency, shall develop a model label for 

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1 native fuels to consumers that identifies a single, readily 

2 comprehensible metric that allows consumers to evaluate 

3 the relative value, energy density, and expected vehicle 

4 performance of any particular advanced alternative fuel 

5 blend. The Secretary shall make the label available for vol6 untary reproduction and adoption.’’. 

7 Subtitle D—Federal Fleets 

8 SEC. 131. DEPARTMENT OF DEFENSE ALTERNATIVE FUELS 

9 CONTRACTING. 

10 (a) AUTHORITY.—Subchapter II of chapter 173 of 

11 title 10, United States Code, is amended by adding at the 

12 end the following: 

13 ‘‘§ 2922h. Liquid fuels: contracts for procurement of 

14 certain transportation fuels 

15 ‘‘(a) AUTHORITY TO CONTRACT.—The Secretary of 

16 Defense may enter into 1 or more contracts for the pro17 curement of fuels described in subsection (b) for the De18 partment of Defense. 

19 ‘‘(b) COVERED FUELS.—A fuel described in this sub20 section is a liquid transportation fuel, including jet fuel, 

21 that is derived from domestic and Indian land sources of 

22 biomass, coal, or other nonpetroleum products. 

23 ‘‘(c) PERIOD OF CONTRACT.—The period of a con24 tract entered into under subsection (a) may not exceed 

25 20 years. 


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1 ‘‘(d) REPORTS ON CONTRACTS.—Not later than 3 

2 years after the date of enactment of this section, the Sec3 retary of Defense shall submit to Congress a report assess4 ing the impact of contracting under subsection (a) on the 

5 vulnerability of the Department of Defense to disruptions 

6 in the global oil supply, including an assessment of wheth7 er lengthening the maximum authorized period of contract 

8 under subsection (c), could further reduce the vulner9 ability of the Department to such disruptions.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 at the beginning of subchapter II of chapter 173 of such 

12 title is amended by adding at the end the following: 

‘‘2922h. Liquid fuels: contracts for procurement of certain transportation 

fuels.’’. 

13 SEC. 132. FUELS FOR NATIONAL SECURITY AGENCIES. 

14 (a) IN GENERAL.—Section 526 of the Energy Inde15 pendence and Security Act of 2007 (42 U.S.C. 17142) is 

16 amended by inserting ‘‘(other than the Department of De17 fense, the Department of Homeland Security, the Depart18 ment of State, and the National Aeronautics and Space 

19 Administration)’’ after ‘‘Federal agency’’. 

20 (b) SENSE OF CONGRESS.—It the sense of Congress 

21 that national security agencies not covered by section 526 

22 of the Energy Independence and Security Act of 2007 (42 

23 U.S.C. 17142) are encouraged to use, to the maximum 


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1 extent practicable, clean fuels derived from nonpetroleum 

2 feedstocks. 

3 SEC. 133. SAVINGS FROM TRANSPORTATION ENERGY PER4 FORMANCE CONTRACTS. 

5 (a) AUTHORITY TO ENTER INTO CONTRACTS.—Sec6 tion 801(a)(1) of the National Energy Conservation Policy 

7 Act (42 U.S.C. 8287(a)(1)) is amended in the first sen8 tence by inserting before the period at the end the fol9 lowing: ‘‘, including savings and benefits involving non10 building applications’’. 

11 (b) PAYMENT OF COSTS.—Section 801(a)(2)(B) of 

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

13 8287(a)(2)(B)) is amended in the first sentence by strik14 ing ‘‘for utilities’’ and inserting ‘‘for utilities or fuel, or 

15 both,’’. 

16 (c) DEFINITIONS.— 

17 (1) ENERGY SAVINGS.—Section 804(2) of the 

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

19 8287c(2)) is amended— 

20 (A) in subparagraph (A), by striking ‘‘or 

21 other federally owned facilities’’ each place it 

22 appears and inserting ‘‘, other federally owned 

23 facilities, or other buildings or facilities at 

24 which an Executive agency pays for utilities’’; 

25 (B) in subparagraph (C)— 


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1 (i) by inserting ‘‘(including new hy2 droelectric generation at Federal dams 

3 that do not have hydroelectric generation 

4 facilities)’’ after ‘‘cogeneration’’; and 

5 (ii) by striking ‘‘and’’ after the semi6 colon at the end; 

7 (C) in subparagraph (D), by striking the 

8 period at the end and inserting ‘‘; and’’; and 

9 (D) by adding at the end the following: 

10 ‘‘(E) the increased efficient use of non11 building applications; and 

12 ‘‘(F) the savings realized from reduced fuel 

13 use, including secondary savings.’’. 

14 (2) NONBUILDING APPLICATION; SECONDARY

15 SAVINGS.—Section 804 of the National Energy Con16 servation Policy Act (42 U.S.C. 8287c) is amended 

17 by adding at the end the following: 

18 ‘‘(5) NONBUILDING APPLICATION.—The term 

19 ‘nonbuilding application’ means— 

20 ‘‘(A) any class of vehicles, devices, or 

21 equipment that is transportable under the 

22 power of the applicable vehicle, device, or equip23 ment by land, sea, or air and that consumes en24 ergy from any fuel source for the purpose of— 

25 ‘‘(i) that transportation; or 


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1 ‘‘(ii) maintaining a controlled environ2 ment within the vehicle, device, or equip3 ment; and 

4 ‘‘(B) any federally owned equipment use to 

5 generate electricity or transport water. 

6 ‘‘(6) SECONDARY SAVINGS.—The term ‘sec7 ondary savings’ means additional energy, fuel, or 

8 cost savings that are a direct consequence of the en9 ergy savings that result from the energy efficiency 

10 improvements that are financed and implemented 

11 pursuant to an energy savings performance con12 tract.’’. 

13 (d) GUIDANCE.—Not later than 1 year after the date 

14 of enactment of this Act, the Secretary of Energy, in con15 sultation with the Secretary of Defense and the Adminis16 trator of General Services, shall issue guidance and rules 

17 to Executive agencies to implement the amendments made 

18 by this section. 

19 TITLE II—ENERGY EFFICIENCY 

20 Subtitle A—Energy Performance in 

21 Buildings 

22 SEC. 201. SAVING ENERGY IN NEW BUILDINGS. 

23 (a) IN GENERAL.—Section 304 of the Energy Con24 servation and Production Act (42 U.S.C. 6833) is amend25 ed to read as follows: 


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1 ‘‘SEC. 304. UPDATING BUILDING ENERGY EFFICIENCY. 

2 ‘‘(a) UPDATING NATIONAL MODEL BUILDING EN3 ERGY CODES.— 

4 ‘‘(1) TARGETS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 support updating the national model building 

7 energy codes and standards at least every 3 

8 years to achieve overall energy savings, com9 pared to the 2009 IECC for residential build10 ings and ASHRAE Standard 90.1–2007 for 

11 commercial buildings. 

12 ‘‘(B) STATE AND LOCAL BUILDING EN13 ERGY CODES.—The Secretary shall encourage 

14 and support the adoption of building energy 

15 codes by States and, as appropriate, local gov16 ernments that— 

17 ‘‘(i) meet or exceed the national model 

18 building energy codes; or 

19 ‘‘(ii) achieve equivalent or greater en20 ergy savings. 

21 ‘‘(C) MINIMUM REQUIREMENTS.—The tar22 gets for overall energy savings shall be at least 

23 a— 

24 ‘‘(i) 15 percent reduction in energy 

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1 structed in compliance with the 2009 

2 IECC by January 1, 2015; 

3 ‘‘(ii) 15 percent reduction in energy 

4 use relative to a comparable building con5 structed in compliance with the ASHRAE 

6 Standard 90.1–2007 by May 1, 2014; 

7 ‘‘(iii) 30 percent reduction in energy 

8 use relative to a comparable building con9 structed in compliance with the 2009 

10 IECC by January 1, 2018; and 

11 ‘‘(iv) 45 percent reduction in energy 

12 use relative to a comparable building con13 structed in compliance with the ASHRAE 

14 Standard 90.1–2007 by January 1, 2019. 

15 ‘‘(D) SPECIFIC YEARS.— 

16 ‘‘(i) IN GENERAL.—Targets for spe17 cific dates subsequent to the dates estab18 lished under clauses (i) and (ii) of sub19 paragraph (C) shall be set by the Secretary 

20 at least 3 years in advance of each target 

21 date, coordinated with the IECC and 

22 ASHRAE Standard 90.1 cycles, at the 

23 maximum level of energy efficiency that is 

24 technologically feasible and life-cycle cost 


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1 effective and higher than the preceding 

2 target. 

3 ‘‘(ii) DIFFERENT TARGET YEARS.— 

4 ‘‘(I) IN GENERAL.—Subject to 

5 paragraph (2)(D), not later than 3 

6 years prior to implementation of 

7 clauses (iii) and (iv) of subparagraph 

8 (C), the Secretary may set a different 

9 target date for the targets established 

10 under those clauses if the Secretary 

11 determines that the target cannot be 

12 met by the target date. 

13 ‘‘(II) NOTICE.—Not later than 

14 15 days prior to a determination 

15 made under subclause (I), the Sec16 retary shall inform the Committee on 

17 Energy and Natural Resources of the 

18 Senate and the Committee on Energy 

19 and Commerce of the House of Rep20 resentatives of the determination. 

21 ‘‘(E) TECHNICAL ASSISTANCE TO MODEL

22 CODE-SETTING AND STANDARD DEVELOPMENT

23 ORGANIZATIONS.— 

24 ‘‘(i) IN GENERAL.—The Secretary 

25 shall, on a timely basis, provide technical 


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1 assistance to model code-setting and stand2 ard development organizations. 

3 ‘‘(ii) ASSISTANCE.—The assistance 

4 shall, to the maximum extent practicable, 

5 include technical assistance identified by 

6 the organizations such as for— 

7 ‘‘(I) evaluating codes or stand8 ards proposals or revisions; 

9 ‘‘(II) building energy analysis 

10 and design tools; 

11 ‘‘(III) building demonstrations; 

12 and 

13 ‘‘(IV) design assistance and 

14 training. 

15 ‘‘(F) AMENDMENT PROPOSALS.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall submit codes and standards amend18 ment proposals to the model code-setting 

19 and standards development organizations, 

20 with supporting evidence, sufficient to en21 able the national model building energy 

22 codes and standards to meet the targets 

23 established under subparagraph (C). 

24 ‘‘(ii) CALCULATION METHODOLOGY.— 

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1 culation methodology (including input as2 sumptions and data) used by the Secretary 

3 to estimate the energy savings of codes, in4 cluding proposals and revisions of codes. 

5 ‘‘(2) REVISION OF BUILDING ENERGY USE

6 STANDARDS.— 

7 ‘‘(A) IN GENERAL.—If the provisions of 

8 the IECC or ASHRAE Standard 90.1 regard9 ing building energy use are revised, the Sec10 retary shall make a determination not later 

11 than 180 days after the date of the revision, on 

12 whether the revision will— 

13 ‘‘(i) improve energy efficiency in 

14 buildings; and 

15 ‘‘(ii) meet the targets under para16 graph (1). 

17 ‘‘(B) CODES OR STANDARDS NOT MEETING

18 TARGETS.— 

19 ‘‘(i) IN GENERAL.—If the Secretary 

20 makes a determination under subpara21 graph (A)(ii) that a code or standard does 

22 not meet the targets established under 

23 paragraph (1), not later than 1 year after 

24 the date of the determination, the Sec25 retary shall provide the model code or 


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1 standard developer with proposed changes 

2 that would result in a model code or stand3 ard that meets the targets (including sup4 porting evidence), taking into consider5 ation— 

6 ‘‘(I) whether the modified code is 

7 technically feasible and life-cycle cost 

8 effective; and 

9 ‘‘(II) potential costs, savings, and 

10 other benefits for consumer and build11 ing owners, including the impact on 

12 overall building ownership and oper13 ating costs. 

14 ‘‘(ii) CONSULTATION WITH SEC15 RETARY.—On receipt of the proposed 

16 changes, the model code or standard devel17 oper shall have an additional period of 90 

18 days to provide input to the Secretary re19 garding the proposed changes and to con20 sult with the Secretary before a revised 

21 model code or standard is released. 

22 ‘‘(iii) IMPLEMENTATION OF

23 CHANGES.— 

24 ‘‘(I) IN GENERAL.—After release 

25 of a revised model code or standard, 


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1 the Secretary shall grant an addi2 tional period of 90 days for the model 

3 code or standard developer to imple4 ment the model code or standard de5 veloped in consultation with the Sec6 retary. 

7 ‘‘(II) MODIFIED CODE OR STAND8 ARD.—If the proposed changes are 

9 not incorporated into the model code 

10 or standard of the developer during 

11 the 90-day period described in sub12 clause (I), the Secretary shall estab13 lish a modified code or standard that 

14 meets the established targets. 

15 ‘‘(iv) ADMINISTRATION.—Any code or 

16 standard modified under this subparagraph 

17 shall— 

18 ‘‘(I) achieve a level of energy sav19 ings that is technologically feasible 

20 and life-cycle cost-effective; 

21 ‘‘(II) be based on the latest edi22 tion of the IECC or ASHRAE Stand23 ard 90.1, including any subsequent 

24 amendments, addenda, or additions, 


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1 but may also consider other model 

2 codes or standards; and 

3 ‘‘(III) serve as the baseline for 

4 the next determination under sub5 paragraph (A)(i). 

6 ‘‘(C) CODES OR STANDARDS NOT UPDATED

7 FOR 3 YEARS.— 

8 ‘‘(i) IN GENERAL.—If the model code 

9 or standard is not revised by a target date 

10 under paragraph (1)(C), the Secretary 

11 shall, not later than 1 year after the target 

12 date, establish a modified code or standard 

13 that meets the targets under paragraph 

14 (1)(C). 

15 ‘‘(ii) REQUIREMENTS.—Any modified 

16 code or standard shall— 

17 ‘‘(I) achieve a level of energy sav18 ings that is technologically feasible 

19 and life-cycle cost-effective; 

20 ‘‘(II) be based on the latest revi21 sion of the IECC or ASHRAE Stand22 ard 90.1, including any amendments 

23 or additions to the code or standard, 

24 but may also consider other model 

25 codes or standards; and 


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1 ‘‘(III) serve as the baseline for 

2 the next determination under sub3 paragraph (A)(i). 

4 ‘‘(D) ADMINISTRATION.—The Secretary 

5 shall— 

6 ‘‘(i) provide an opportunity for public 

7 comment on targets, determinations, and 

8 modified codes and standards under this 

9 subsection; 

10 ‘‘(ii) publish in the Federal Register 

11 notice of targets, determinations, and 

12 modified codes and standards under this 

13 subsection; and 

14 ‘‘(iii) consult with key model code-set15 ting and standard development organiza16 tions during the code development process. 

17 ‘‘(b) ESTABLISHING VOLUNTARY MODEL CODES.— 

18 ‘‘(1) DETERMINATION OF VOLUNTARY MODEL

19 CODE.— 

20 ‘‘(A) IN GENERAL.—If the Secretary 

21 makes an affirmative determination or estab22 lishes a modified code or standard under para23 graph (2), the Secretary shall establish the 

24 modified code or standard as the Voluntary 

25 Model Code. 


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1 ‘‘(B) STATE NOTIFICATION.—The Sec2 retary shall notify each State of the determina3 tion of the Voluntary Model Code not later than 

4 30 days after establishing or modifying the 

5 Code. 

6 ‘‘(2) INITIAL VOLUNTARY MODEL CODE.—As of 

7 the date of enactment of the Practical Energy Plan 

8 Act of 2011, the Voluntary Model Code shall be— 

9 ‘‘(A) the 2009 IECC for residential build10 ings; and 

11 ‘‘(B) the ASHRAE Standard 90.1–2010 

12 for commercial buildings. 

13 ‘‘(c) STATE CERTIFICATION OF BUILDING ENERGY

14 CODE UPDATES.— 

15 ‘‘(1) REVIEW AND UPDATING OF CODES BY

16 EACH STATE.— 

17 ‘‘(A) IN GENERAL.—Not later than 2 years 

18 after the date on which the Voluntary Model 

19 Code is established under subsection (b), each 

20 State shall certify to the Secretary whether or 

21 not the State has reviewed and updated the 

22 provisions of the residential and commercial 

23 building codes of the State regarding energy ef24 ficiency. 


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1 ‘‘(B) DEMONSTRATION.—For a State to be 

2 in compliance with this section, the certification 

3 under subparagraph (A) shall include a dem4 onstration that the code provisions that are in 

5 effect throughout the State— 

6 ‘‘(i) meet or exceed the Voluntary 

7 Model Code; or 

8 ‘‘(ii) achieve equivalent or greater en9 ergy savings. 

10 ‘‘(d) STATE CERTIFICATION OF COMPLIANCE WITH

11 BUILDING CODES.— 

12 ‘‘(1) REQUIREMENT.— 

13 ‘‘(A) IN GENERAL.—Not later than 3 years 

14 after the date of a certification under sub15 section (c), each State shall certify whether or 

16 not the State has— 

17 ‘‘(i) achieved compliance under para18 graph (3) with the certified State building 

19 energy code or the Voluntary Model Code; 

20 or 

21 ‘‘(ii) made significant progress under 

22 paragraph (4) toward achieving compliance 

23 with the certified State building energy 

24 code or the Voluntary Model Code. 


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1 ‘‘(B) REPEAT CERTIFICATIONS.—If a 

2 State certifies progress toward achieving com3 pliance, the State shall repeat the certification 

4 each year until the State certifies that the State 

5 has achieved compliance. 

6 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer7 tification under paragraph (1) shall include docu8 mentation of the rate of compliance based on— 

9 ‘‘(A) independent inspections of a random 

10 sample of the new and renovated buildings cov11 ered by the code in the preceding year; or 

12 ‘‘(B) an alternative method that yields an 

13 accurate measure of compliance. 

14 ‘‘(3) ACHIEVEMENT OF COMPLIANCE.—A State 

15 shall be considered to achieve compliance under 

16 paragraph (1) if— 

17 ‘‘(A) at least 90 percent of new building 

18 space covered by the code in the preceding year 

19 substantially meets all the requirements of the 

20 code regarding energy efficiency, or achieves 

21 equivalent or greater energy savings; or 

22 ‘‘(B) the estimated excess energy use of 

23 new and renovated buildings that did not meet 

24 the code in the preceding year, compared to a 

25 baseline of comparable buildings that meet the 


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1 code, is not more than 5 percent of the esti2 mated energy use of all new and renovated 

3 buildings covered by the code during the pre4 ceding year. 

5 ‘‘(4) SIGNIFICANT PROGRESS TOWARD

6 ACHIEVEMENT OF COMPLIANCE.— 

7 ‘‘(A) IN GENERAL.—For purposes of para8 graph (1), a State shall be considered to have 

9 made significant progress toward achieving 

10 compliance if the State— 

11 ‘‘(i) has developed and is imple12 menting a plan for achieving compliance 

13 not later than 8 years after the date of en14 actment of the Practical Energy Plan Act 

15 of 2011, assuming continued adequate 

16 funding, including active training and en17 forcement programs; 

18 ‘‘(ii) after 1 or more years of ade19 quate funding, has demonstrated progress, 

20 in conformance with the plan described in 

21 clause (i), toward compliance; 

22 ‘‘(iii) after 5 or more years of ade23 quate funding, meets the requirements of 

24 paragraph (3) if ‘80 percent’ is substituted 


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1 for ‘90 percent’ or ‘10 percent’ is sub2 stituted for ‘5 percent’; and 

3 ‘‘(iv) has not had more than 8 years 

4 of adequate funding. 

5 ‘‘(B) ADEQUATE FUNDING.—For purposes 

6 of this paragraph, funding shall be considered 

7 adequate if the Federal Government provides to 

8 the States at least $50,000,000 for a fiscal year 

9 in funding and support for development and im10 plementation of State building energy codes, in11 cluding for training and enforcement. 

12 ‘‘(C) TECHNICAL ASSISTANCE TO

13 STATES.—The Secretary shall make available 

14 technical assistance to States to implement this 

15 section, including procedures and technical 

16 analysis for States— 

17 ‘‘(i) to demonstrate that the code pro18 visions of the States achieve equivalent or 

19 greater energy savings than the Voluntary 

20 Model Code; 

21 ‘‘(ii) to document the rate of compli22 ance with a building energy code; and 

23 ‘‘(iii) to improve and implement State 

24 residential and commercial building energy 

25 efficiency codes. 


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1 ‘‘(D) VOLUNTARY ADVANCED CODES AND

2 STANDARDS.— 

3 ‘‘(i) IN GENERAL.—The Secretary 

4 shall support the development of voluntary 

5 advanced model codes and standards for 

6 residential and commercial buildings that 

7 achieve energy savings of at least 30 per8 cent compared to the Voluntary Model 

9 Code, for use in— 

10 ‘‘(I) building design; 

11 ‘‘(II) voluntary and market 

12 transformation programs; 

13 ‘‘(III) incentive criteria; and 

14 ‘‘(IV) voluntary adoption by 

15 States. 

16 ‘‘(ii) UPDATES.—The voluntary ad17 vanced model codes and standards shall be 

18 updated at least once every 3 years. 

19 ‘‘(e) COMPLIANCE.— 

20 ‘‘(1) VALIDATION OF CERTIFICATION.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), not later than 60 days after the date 

23 of receipt of certification required by subsection 

24 (c), the Secretary shall inform the submitting 

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1 dates the certification and, if not validated, the 

2 reasons for not validating the certification as 

3 submitted. 

4 ‘‘(B) DEFERRAL.—On the request of the 

5 State, the Secretary may defer the validation 

6 decision for an additional 90 days. 

7 ‘‘(C) NONCOMPLIANCE.—Any State for 

8 which the Secretary has not accepted a certifi9 cation by a deadline under subsection (c) or (d) 

10 shall be considered out of compliance with this 

11 section. 

12 ‘‘(2) LOCAL GOVERNMENT.—In any State that 

13 is out of compliance with this section, a local govern14 ment may be considered in compliance with this sec15 tion by meeting the certification requirements under 

16 subsections (c) and (d). 

17 ‘‘(3) ANNUAL REPORTS BY SECRETARY.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 annually submit to Congress, and publish in the 

20 Federal Register, a report that describes— 

21 ‘‘(i) the status of Voluntary Model 

22 Codes; 

23 ‘‘(ii) the status of code adoption and 

24 compliance in the States; and 

25 ‘‘(iii) implementation of this section. 


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1 ‘‘(B) IMPACTS.—The report shall include 

2 estimates of impacts of past action under this 

3 section, and potential impacts of further action, 

4 on lifetime energy use by buildings and result5 ing energy costs to individuals and businesses. 

6 ‘‘(4) CONSIDERATION IN GRANT PROCESS.— 

7 The Secretary shall consider as a factor of any 

8 grants to be awarded by the Department to States 

9 whether or not the State is in compliance with this 

10 section under paragraph (1). 

11 ‘‘(f) AVAILABILITY OF IMPLEMENTATION ASSIST12 ANCE FUNDING.— 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) REQUIREMENT.—The Secretary shall 

15 provide implementation assistance funding to 

16 States and local governments to implement this 

17 section, and to improve and implement State 

18 residential and commercial building energy effi19 ciency codes, including increasing and verifying 

20 compliance with the codes and training of State 

21 and local building code officials. 

22 ‘‘(B) STATE ACTIONS.—In determining 

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1 section, the Secretary shall consider the actions 

2 proposed by the State— 

3 ‘‘(i) to implement this section; 

4 ‘‘(ii) to improve and implement resi5 dential and commercial building energy ef6 ficiency codes; and 

7 ‘‘(iii) to promote building energy effi8 ciency through the use of the codes. 

9 ‘‘(2) ADDITIONAL FUNDING.—Additional fund10 ing shall be provided under this subsection for im11 plementation of a plan to achieve and document at 

12 least a 90-percent rate of compliance with residential 

13 and commercial building energy efficiency codes, 

14 based on energy performance— 

15 ‘‘(A) to a State that is in compliance with 

16 this section under subsection (e)(1); and 

17 ‘‘(B) in a State in which there is no state18 wide energy code for residential or commercial 

19 buildings, or in which State codes fail to comply 

20 with subparagraph (A), to a local government 

21 that is in compliance with this section under 

22 subsection (e)(2). 

23 ‘‘(3) TRAINING.—Of the amounts made avail24 able under this subsection, the State may use 

25 amounts required, but not to exceed $500,000 per 


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1 State, to train State and local building code officials 

2 to implement and enforce codes described in para3 graph (2). 

4 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

5 There are authorized to be appropriated to carry out 

6 this subsection— 

7 ‘‘(A) $300,000,000 for each of fiscal years 

8 2012 through 2016; and 

9 ‘‘(B) such sums as are necessary for fiscal 

10 year 2016 and each fiscal year thereafter.’’. 

11 (b) DEFINITION OF IECC.—Section 303 of the En12 ergy Conservation and Production Act (42 U.S.C. 6832) 

13 is amended by adding at the end the following: 

14 ‘‘(17) IECC.—The term ‘IECC’ means the 

15 International Energy Conservation Code.’’. 

16 SEC. 202. ENABLING HOMES AND BUILDINGS ENERGY RET17 ROFITS. 

18 (a) DEFINITIONS.—In this section: 

19 (1) COST.—The term ‘‘cost’’ has the meaning 

20 given the term in section 502 of the Federal Credit 

21 Reform Act of 1990 (2 U.S.C. 661a). 

22 (2) DIRECT LOAN.—The term ‘‘direct loan’’ has 

23 the meaning given the term in section 502 of the 

24 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 


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1 (3) LOAN GUARANTEE.—The term ‘‘loan guar2 antee’’ has the meaning given the term in section 

3 502 of the Federal Credit Reform Act of 1990 (2 

4 U.S.C. 661a). 

5 (4) PROGRAM.—The term ‘‘Program’’ means 

6 the Homes and Buildings Energy Retrofits Program 

7 established by subsection (b). 

8 (5) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Energy. 

10 (6) SECURITY.—The term ‘‘security’’ has the 

11 meaning given the term in section 2 of the Securities 

12 Act of 1933 (15 U.S.C. 77b). 

13 (7) STATE.—The term ‘‘State’’ means— 

14 (A) a State; 

15 (B) the District of Columbia; 

16 (C) the Commonwealth of Puerto Rico; 

17 and 

18 (D) any other territory or possession of the 

19 United States. 

20 (b) ESTABLISHMENT.—There is established in the 

21 Department of Energy a program to be known as the 

22 Homes and Buildings Energy Retrofits Program, which 

23 shall— 

24 (1) have annual target energy efficiency retrofit 

25 rates of— 


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1 (A) 5 percent for homes; and 

2 (B) 2 percent for commercial buildings; 

3 and 

4 (2) encourage private lending for energy retro5 fits. 

6 (c) ELIGIBILITY CRITERIA.— 

7 (1) IN GENERAL.—In administering the Pro8 gram, the Secretary shall establish eligibility criteria 

9 for applicants for financial assistance under sub10 section (d) who can offer financial products and pro11 grams consistent with the purposes of this section. 

12 (2) CRITERIA.—Criteria for applicants shall— 

13 (A) take into account— 

14 (i) expected energy savings; 

15 (ii) percentage electricity rate in16 creases in areas to be served by the appli17 cant that are attributable to implementa18 tion of environmental controls on power 

19 generation; 

20 (iii) the number and type of buildings 

21 that can be served by the applicant, the 

22 size of the potential market, and the scope 

23 of the program (in terms of measures or 

24 technologies to be used); 


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1 (iv) the ability of the applicant to suc2 cessfully execute the proposed program 

3 and maintain the performance of the pro4 posed projects and investments; 

5 (v) financial criteria, as applicable, in6 cluding the ability of the applicant to raise 

7 private capital or other sources of funds 

8 for the proposed program; 

9 (vi) criteria that enable the Secretary 

10 to determine sound program design, in11 cluding— 

12 (I) an assurance of credible en13 ergy efficiency or renewable energy 

14 generation performance; and 

15 (II) financial product or program 

16 design that effectively reduces barriers 

17 posed by traditional financing pro18 grams; 

19 (vii) such criteria, standards, guide20 lines, and mechanisms as will enable the 

21 Secretary, to the maximum extent prac22 ticable, to communicate to program spon23 sors and originators, servicers, and sellers 

24 of financial obligations the eligibility of 

25 loans for resale; 


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1 (viii) the ability of the applicant to re2 port relevant data on program perform3 ance; and 

4 (ix) the ability of the applicant to use 

5 incentives or marketing techniques that are 

6 likely to result in successful market pene7 tration; and 

8 (B) encourage— 

9 (i) use of technologies that are either 

10 well-established or new, but demonstrated 

11 to be reliable; 

12 (ii) applicants that can offer building 

13 owners or lessees payment plans generally 

14 designed to permit the combination of en15 ergy payments and assessments or charges 

16 from the installation or payments associ17 ated with financing to be lower than the 

18 energy payments prior to installing energy 

19 efficiency measures or on-site renewable 

20 energy technologies; 

21 (iii) applicants that will use repay22 ment mechanisms convenient for building 

23 owners, such as tax-increment financing, 

24 special tax districts, on-utility-bill repay25 ment, or other mechanisms; 


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1 (iv) applicants that can provide con2 venience for building owners by combining 

3 participation in the lending program 

4 with— 

5 (I) processing for tax credits and 

6 other incentives; and 

7 (II) technical assistance in select8 ing and working with vendors to pro9 vide energy efficiency measures or on10 site renewable energy generation sys11 tems; 

12 (v) applicants the projects of which 

13 will use contractors that hire within a 50- 

14 mile radius of the project, or as close as is 

15 practicable; 

16 (vi) applicants that will use materials 

17 and technologies manufactured in the 

18 United States; 

19 (vii) partnerships with or other in20 volvement of State workforce investment 

21 boards, labor organizations, community22 based organizations, State-approved ap23 prenticeship programs, and other job train24 ing entities; and 


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1 (viii) applicants that can provide fi2 nancing programs or financial products 

3 that mitigate barriers other than the initial 

4 expense of installing measures or tech5 nologies, such as unfavorable lease terms. 

6 (3) DIVERSE PORTFOLIO.—In establishing cri7 teria and selecting applicants to receive financial as8 sistance under subsection (d), the Secretary shall se9 lect a portfolio of investments that reaches a diver10 sity of building owners and lessees, including— 

11 (A) individual homeowners or lessees; 

12 (B) multifamily apartment building owners 

13 or lessees; 

14 (C) condominium owners associations; 

15 (D) commercial building owners or lessees, 

16 including multi-tenant commercial properties; 

17 (E) industrial building owners or lessees; 

18 and 

19 (F) schools, hospitals, and other buildings 

20 designated by the Secretary. 

21 (d) FINANCIAL ASSISTANCE.— 

22 (1) IN GENERAL.—For applicants determined 

23 to be eligible under criteria established under sub24 section (c), the Secretary may provide financial as25 sistance in the form of direct loans, letters of credit, 


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1 loan guarantees, insurance products, other credit en2 hancements or debt instruments (including 

3 securitization or indirect credit support), or other fi4 nancial products to promote the widespread deploy5 ment of, and mobilize private sector support of cred6 it and investment institutions for, energy efficiency 

7 measures and on-site renewable energy generation 

8 systems in buildings. 

9 (2) FINANCIAL PRODUCTS.—The Secretary— 

10 (A) in cooperation with Federal, State, 

11 local, and private sector entities, shall develop 

12 debt instruments that provide for the aggrega13 tion of, or directly aggregate, programs for the 

14 deployment of energy efficiency measures and 

15 on-site renewable energy generation systems on 

16 a scale appropriate for residential, commercial, 

17 or industrial applications; and 

18 (B) may insure, guarantee, purchase, and 

19 make commitments to purchase any debt in20 strument associated with the deployment of 

21 clean energy technologies (including subordi22 nated securities) for the purpose of enhancing 

23 the availability of private financing for the de24 ployment of energy efficiency measures and on25 site renewable energy generation systems. 


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1 (3) APPLICATION REVIEW.— 

2 (A) IN GENERAL.—To the maximum ex3 tent practicable and consistent with sound busi4 ness practices, the Secretary shall seek to expe5 dite reviews of applications for credit support 

6 under this section in order to communicate to 

7 applicants in a timely manner the likelihood of 

8 support so that the applicants can seek private 

9 capital in order to receive final approval. 

10 (B) MECHANISMS.—In carrying out this 

11 paragraph, the Secretary shall consider using 

12 mechanisms such as— 

13 (i) a system for conditional pre-ap14 proval that informs applicants that final 

15 applicants will be approved, if established 

16 conditions are met; 

17 (ii) clear guidelines that communicate 

18 to applicants what level of performance on 

19 eligibility criteria will ensure approval for 

20 credit support or resale; 

21 (iii) in the case of an applicant port22 folio of more than 300 loans or other fi23 nancial arrangement, an expedited review 

24 based on statistical sampling to ensure 


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1 that the loan or other financial arrange2 ment meets the eligibility criteria; and 

3 (iv) in the case of an applicant with a 

4 demonstrated track record with respect to 

5 successfully originating eligible loans or 

6 other financial arrangements and who 

7 meets appropriate other criteria deter8 mined by the Secretary, a system for dele9 gating responsibility for meeting eligibility 

10 criteria that includes appropriate protec11 tions such as buy-back mechanisms in the 

12 event criteria are determined not to have 

13 been met. 

14 (C) DISPOSITION OF DEBT OR INTER15 EST.—The Secretary may acquire, hold, and 

16 sell or otherwise dispose of, pursuant to com17 mitments or otherwise, any debt associated with 

18 the deployment of clean energy technologies or 

19 interest in the debt. 

20 (D) PRICING.— 

21 (i) IN GENERAL.—The Secretary may 

22 establish requirements, and impose charges 

23 or fees, which may be regarded as elements 

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1 cants, originators, sellers, servicers, or 

2 services. 

3 (ii) CLASSIFICATION OF APPLICANTS, 

4 ORIGINATORS, SELLERS AND SERVICERS.— 

5 For the purpose of clause (i), the Secretary 

6 may classify applicants, originators, sellers 

7 and servicers as necessary to promote 

8 transparency and liquidity and properly 

9 characterize the risk of default. 

10 (E) SECONDARY MARKET SUPPORT.— 

11 (i) IN GENERAL.—The Secretary may 

12 lend on the security of, and make commit13 ments to lend on the security of, any debt 

14 that the Secretary has insured, guaran15 teed, issued or is authorized to purchase 

16 under this section. 

17 (ii) AUTHORIZED ACTIONS.—On such 

18 terms and conditions as the Secretary may 

19 prescribe, the Secretary may— 

20 (I) give security; 

21 (II) insure; 

22 (III) guarantee; 

23 (IV) purchase; 

24 (V) sell; 


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1 (VI) pay interest or other return; 

2 and 

3 (VII) issue notes, debentures, 

4 bonds, or other obligations or securi5 ties. 

6 (F) LENDING ACTIVITIES.— 

7 (i) IN GENERAL.—The Secretary shall 

8 determine— 

9 (I) the volume of the lending ac10 tivities of the Program; and 

11 (II) the types of loan ratios, risk 

12 profiles, interest rates, maturities, and 

13 charges or fees in the secondary mar14 ket operations of the Program. 

15 (ii) OBJECTIVES.—Determinations 

16 under clause (i) shall be consistent with 

17 the objectives of— 

18 (I) providing an attractive invest19 ment environment for programs that 

20 install energy efficiency measures or 

21 on-site renewable energy generation 

22 technologies; 

23 (II) making the operations of the 

24 Program self-supporting over a rea25 sonable time frame; 


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1 (III) encouraging, and not crowd2 ing out, reasonably priced private fi3 nancing mechanisms and institutions; 

4 and 

5 (IV) advancing the goals estab6 lished under this section. 

7 (G) EXEMPT SECURITIES.—All securities 

8 issued, insured, or guaranteed by the Secretary 

9 shall, to the same extent as securities that are 

10 direct obligations of or obligations guaranteed 

11 as to principal or interest by the United States, 

12 be considered to be exempt securities within the 

13 meaning of the laws administered by the Secu14 rities and Exchange Commission. 

15 (e) PERIODIC REPORTS.—Not later than 1 year after 

16 commencement of operation of the Program and at least 

17 biannually thereafter, the Secretary shall submit to the 

18 Committee on Energy and Natural Resources of the Sen19 ate and the Committee on Energy and Commerce of the 

20 House of Representatives a report that includes a descrip21 tion of the Program in meeting the purpose and goals es22 tablished by or pursuant to this section. 

23 (f) AUDITS BY THE COMPTROLLER GENERAL.— 

24 (1) IN GENERAL.—The programs, activities, re25 ceipts, expenditures, and financial transactions of 


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1 the Program shall be subject to audit by the Comp2 troller General of the United States under such rules 

3 and regulations as may be prescribed by the Comp4 troller General. 

5 (2) ACCESS.—The representatives of the Gov6 ernment Accountability Office shall— 

7 (A) have access to the personnel and to all 

8 books, accounts, documents, records (including 

9 electronic records), reports, files, and all other 

10 papers, automated data, things, or property be11 longing to, under the control of, or in use by 

12 the Program, or any agent, representative, at13 torney, advisor, or consultant retained by the 

14 Program, and necessary to facilitate the audit; 

15 (B) be afforded full facilities for verifying 

16 transactions with the balances or securities held 

17 by depositories, fiscal agents, and custodians; 

18 (C) be authorized to obtain and duplicate 

19 any such books, accounts, documents, records, 

20 working papers, automated data and files, or 

21 other information relevant to the audit without 

22 cost to the Comptroller General; and 

23 (D) have the right of access of the Comp24 troller General to such information pursuant to 

25 section 716(c) of title 31, United States Code. 


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1 (3) ASSISTANCE AND COST.— 

2 (A) IN GENERAL.—For the purpose of con3 ducting an audit under this subsection, the 

4 Comptroller General may, in the discretion of 

5 the Comptroller General, employ by contract, 

6 without regard to section 3709 of the Revised 

7 Statutes (41 U.S.C. 5), professional services of 

8 firms and organizations of certified public ac9 countants for temporary periods or for special 

10 purposes. 

11 (B) REIMBURSEMENT.— 

12 (i) IN GENERAL.—On the request of 

13 the Comptroller General, the Secretary 

14 shall reimburse the General Accountability 

15 Office for the full cost of any audit con16 ducted by the Comptroller General under 

17 this subsection. 

18 (ii) CREDITING.—Such reimburse19 ments shall— 

20 (I) be credited to the appropria21 tion account entitled ‘‘Salaries and 

22 Expenses, Government Accountability 

23 Office’’ at the time at which the pay24 ment is received; and 


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1 (II) remain available until ex2 pended. 

3 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $2,000,000,000. 

6 SEC. 203. RURAL ENERGY SAVINGS. 

7 Title VI of the Farm Security and Rural Investment 

8 Act of 2002 (7 U.S.C. 7901 note et seq.) is amended by 

9 adding at the end the following: 

10 ‘‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM. 

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

12 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en13 tity’ means— 

14 ‘‘(A) any public power district, public util15 ity district, or similar entity, or any electric co16 operative described in sections 501(c)(12) or 

17 1381(a)(2)(C) of the Internal Revenue Code of 

18 1986, that borrowed and repaid, prepaid, or is 

19 paying an electric loan made or guaranteed by 

20 the Rural Utilities Service (or any predecessor 

21 agency); or 

22 ‘‘(B) any entity primarily owned or con23 trolled by an entity or entities described in sub24 paragraph (A). 


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1 ‘‘(2) ENERGY EFFICIENCY MEASURES.—The 

2 term ‘energy efficiency measures’ means, for or at 

3 property served by an eligible entity, structural im4 provements and investments in cost-effective, com5 mercial technologies to increase energy efficiency. 

6 ‘‘(3) QUALIFIED CONSUMER.—The term ‘quali7 fied consumer’ means a consumer served by an eligi8 ble entity that has the ability to repay a loan made 

9 under subsection (c), as determined by an eligible 

10 entity. 

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

12 the Secretary of Agriculture, acting through the Ad13 ministrator of the Rural Utilities Service. 

14 ‘‘(b) LOANS TO ELIGIBLE ENTITIES.— 

15 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

16 the Secretary shall make loans to eligible entities 

17 that agree to use the loan funds to make loans to 

18 qualified consumers as described in subsection (c) 

19 for the purpose of implementing energy efficiency 

20 measures. 

21 ‘‘(2) REQUIREMENTS.— 

22 ‘‘(A) IN GENERAL.—As a condition to re23 ceiving a loan under this subsection, an eligible 

24 entity shall— 


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1 ‘‘(i) establish a list of energy effi2 ciency measures that is expected to de3 crease energy use or costs of qualified con4 sumers; 

5 ‘‘(ii) prepare an implementation plan 

6 for use of the loan funds; and 

7 ‘‘(iii) provide for appropriate measure8 ment and verification to ensure the effec9 tiveness of the energy efficiency loans 

10 made by the eligible entity and that there 

11 is no conflict of interest in the carrying out 

12 of this section. 

13 ‘‘(B) REVISION OF LIST OF ENERGY EFFI14 CIENCY MEASURES.—An eligible entity may up15 date the list required under subparagraph 

16 (A)(i) to account for newly available efficiency 

17 technologies, subject to the approval of the Sec18 retary. 

19 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO20 GRAMS.—An eligible entity that, on or before 

21 the date of the enactment of this section or 

22 within 60 days after such date, has already es23 tablished an energy efficiency program for 

24 qualified consumers may use an existing list of 

25 energy efficiency measures, implementation 


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1 plan, or measurement and verification system of 

2 that program to satisfy the requirements of 

3 subparagraph (A) if the Secretary determines 

4 the list, plans, or systems are consistent with 

5 the purposes of this section. 

6 ‘‘(3) NO INTEREST.—A loan under this sub7 section shall bear no interest. 

8 ‘‘(4) REPAYMENT.—In the case of a loan made 

9 under paragraph (1)— 

10 ‘‘(A) the term shall not exceed 20 years 

11 after the date the loan is closed; and 

12 ‘‘(B) except as provided in paragraph (6), 

13 the repayment of each advance shall be amor14 tized for a period of not to exceed 10 years. 

15 ‘‘(5) AMOUNT OF ADVANCES.—Any advance of 

16 loan funds to an eligible entity in any single year 

17 shall not exceed 50 percent of the approved loan 

18 amount. 

19 ‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVI20 TIES.— 

21 ‘‘(A) IN GENERAL.—To assist an eligible 

22 entity in defraying appropriate start-up costs 

23 (as determined by the Secretary) of establishing 

24 new programs or modifying existing programs 

25 to carry out subsection (d), the Secretary shall 


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1 allow an eligible entity to request a special ad2 vance. 

3 ‘‘(B) AMOUNT.—No eligible entity may re4 ceive a special advance under this paragraph 

5 for an amount that is more than 4 percent of 

6 the loan amount received by the eligible entity 

7 under paragraph (1). 

8 ‘‘(C) REPAYMENT.—Repayment— 

9 ‘‘(i) shall be required not later than 

10 the end of the 10-year period beginning on 

11 the date the advance is received; and 

12 ‘‘(ii) at the election of the eligible en13 tity, may be deferred to the end of the 10- 

14 year period. 

15 ‘‘(c) LOANS TO QUALIFIED CONSUMERS.— 

16 ‘‘(1) TERMS OF LOANS.—Loans made by an eli17 gible entity to qualified consumers using loan funds 

18 provided by the Secretary under subsection (b)— 

19 ‘‘(A) may bear interest, not to exceed 3 

20 percent, to be used for purposes that include es21 tablishing a loan loss reserve and to offset per22 sonnel and program costs of eligible entities to 

23 provide the loans; 

24 ‘‘(B) shall finance energy efficiency meas25 ures for the purpose of decreasing energy usage 


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1 or costs of the qualified consumer by an 

2 amount such that a loan term of not more than 

3 10 years will not pose an undue financial bur4 den on the qualified consumer, as determined 

5 by the eligible entity; 

6 ‘‘(C) shall not be used to fund energy effi7 ciency measures made to personal property un8 less the personal property— 

9 ‘‘(i) is or becomes attached to real 

10 property as a fixture; or 

11 ‘‘(ii) is a manufactured home; 

12 ‘‘(D) shall be repaid through charges 

13 added to the electric bill for the property for, or 

14 at which, energy efficiency measures are or will 

15 be implemented, on the condition that this re16 quirement does not prohibit— 

17 ‘‘(i) the voluntary prepayment of a 

18 loan by the owner of the property; or 

19 ‘‘(ii) the use of any additional repay20 ment mechanisms that are— 

21 ‘‘(I) demonstrated to have appro22 priate risk mitigation features, as de23 termined by the eligible entity; or 


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1 ‘‘(II) required if the qualified 

2 consumer is no longer a customer of 

3 the eligible entity; and 

4 ‘‘(E) shall require an energy audit by an 

5 eligible entity to determine the impact of pro6 posed energy efficiency measures on the energy 

7 costs and consumption of the qualified con8 sumer. 

9 ‘‘(2) CONTRACTORS.—In addition to any other 

10 qualified general contractor, eligible entities may 

11 serve as general contractors. 

12 ‘‘(d) MEASUREMENT AND VERIFICATION, TRAINING, 

13 AND TECHNICAL ASSISTANCE.— 

14 ‘‘(1) CONTRACT AUTHORIZED.—Not later than 

15 90 days after the date of enactment of this section, 

16 the Secretary— 

17 ‘‘(A) shall establish a plan for measure18 ment and verification, training, and technical 

19 assistance of the program; and 

20 ‘‘(B) may enter into 1 or more contracts 

21 for the purposes of— 

22 ‘‘(i) providing measurement and 

23 verification activities; and 

24 ‘‘(ii) developing a program to provide 

25 technical assistance and training to the 


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1 employees of eligible entities to carry out 

2 this section. 

3 ‘‘(2) USE OF SUBCONTRACTORS AUTHOR4 IZED.—A qualified entity that enters into a contract 

5 under paragraph (1) may use subcontractors to as6 sist the qualified entity in carrying out the contract. 

7 ‘‘(e) FAST START DEMONSTRATION PROJECTS.— 

8 ‘‘(1) DEMONSTRATION PROJECTS AUTHOR9 ITY.—The Secretary may enter into agreements with 

10 eligible entities (or groups of eligible entities) that 

11 have energy efficiency programs described in sub12 section (b)(2)(C) to establish energy efficiency loan 

13 demonstration projects consistent with the purposes 

14 of this section. 

15 ‘‘(2) EVALUATION CRITERIA.—In determining 

16 which eligible entities to award loans under this sec17 tion, the Secretary shall take into consideration enti18 ties that— 

19 ‘‘(A) implement approaches to energy au20 dits or investments in energy efficiency meas21 ures that yield measurable and predictable sav22 ings; 

23 ‘‘(B) use measurement and verification 

24 processes to determine the effectiveness of en25 ergy efficiency loans made by eligible entities; 


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1 ‘‘(C) include training for employees of eli2 gible entities, including any contractors of such 

3 entities, to implement or oversee the activities 

4 described in subparagraphs (A) and (B); 

5 ‘‘(D) provide for the participation of a ma6 jority of eligible entities in a State; 

7 ‘‘(E) reduce the need for generating capac8 ity; 

9 ‘‘(F) provide efficiency loans to— 

10 ‘‘(i) not fewer than 20,000 consumers, 

11 in the case of a single eligible entity; or 

12 ‘‘(ii) not fewer than 80,000 con13 sumers, in the case of a group of eligible 

14 entities; and 

15 ‘‘(G) serve areas in which, as determined 

16 by the Secretary, a large percentage of con17 sumers reside— 

18 ‘‘(i) in manufactured homes; or 

19 ‘‘(ii) in housing units that are more 

20 than 50 years old. 

21 ‘‘(3) DEADLINE FOR IMPLEMENTATION.—The 

22 agreements required by paragraph (1) shall, to the 

23 maximum extent practicable, be entered into not 

24 later than 90 days after the date of enactment of 

25 this section. 


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1 ‘‘(4) EFFECT ON AVAILABILITY OF LOANS NA2 TIONALLY.—Nothing in this subsection shall delay 

3 the availability of loans to eligible entities on a na4 tional basis beginning not later than 180 days after 

5 the date of enactment of this section. 

6 ‘‘(5) ADDITIONAL DEMONSTRATION PROJECT

7 AUTHORITY.— 

8 ‘‘(A) IN GENERAL.—The Secretary may 

9 conduct demonstration projects in addition to 

10 the project authorized by paragraph (1). 

11 ‘‘(B) INAPPLICABILITY OF CERTAIN CRI12 TERIA.—The additional demonstration projects 

13 may be carried out without regard to subpara14 graphs (D), (F), or (G) of paragraph (2). 

15 ‘‘(f) ADDITIONAL AUTHORITY.—The authority pro16 vided in this section is in addition to any authority of the 

17 Secretary to offer loans under any other law. 

18 ‘‘(g) REGULATIONS.— 

19 ‘‘(1) IN GENERAL.—Except as otherwise pro20 vided in this subsection, not later than 180 days 

21 after the date of enactment of this section, the Sec22 retary shall promulgate such regulations as are nec23 essary to implement this section. 


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1 ‘‘(2) PROCEDURE.—The promulgation of the 

2 regulations and administration of this section shall 

3 be made without regard to— 

4 ‘‘(A) chapter 35 of title 44, United States 

5 Code (commonly known as the ‘Paperwork Re6 duction Act’); and 

7 ‘‘(B) the Statement of Policy of the Sec8 retary of Agriculture effective July 24, 1971 

9 (36 Fed. Reg. 13804), relating to notices of 

10 proposed rulemaking and public participation in 

11 rulemaking. 

12 ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY

13 RULEMAKING.—In carrying out this section, the Sec14 retary shall use the authority provided under section 

15 808 of title 5, United States Code. 

16 ‘‘(4) INTERIM REGULATIONS.—Notwithstanding 

17 paragraphs (1) and (2), to the extent regulations are 

18 necessary to carry out any provision of this section, 

19 the Secretary shall implement such regulations 

20 through the promulgation of an interim rule. 

21 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

22 is authorized to be appropriated to the Secretary to carry 

23 out this section $760,000,000, to remain available until 

24 expended.’’. 


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1 Subtitle B—Federal Properties 

2 SEC. 211. ENERGY EFFICIENT FEDERAL BUILDINGS. 

3 (a) IN GENERAL.— 

4 (1) REQUIREMENTS.—Section 543 of the Na5 tional Energy Conservation Policy Act (42 U.S.C. 

6 8253) is amended— 

7 (A) by redesignating the second subsection 

8 (f) (relating to large capital energy invest9 ments) as subsection (g); and 

10 (B) by adding at the end the following: 

11 ‘‘(h) ENERGY EFFICIENT FEDERAL BUILDINGS.— 

12 ‘‘(1) IN GENERAL.—To the maximum extent 

13 practicable, each Federal agency shall ensure that 

14 any new Federal building is designed in a manner 

15 to enhance energy efficiency, including— 

16 ‘‘(A) by complying with paragraphs (2) 

17 and (3); and 

18 ‘‘(B) by identifying and analyzing impacts 

19 from energy usage and alternative energy 

20 sources in all environmental impact statements 

21 or similar analyses required under the National 

22 Environmental Policy Act of 1969 (42 U.S.C. 

23 4321 et seq.) for proposals covering new or ex24 panded Federal facilities. 


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1 ‘‘(2) FIRST STAGE.—To the maximum extent 

2 practicable, each Federal agency shall ensure that 

3 any Federal building that enters the design phase on 

4 or after January 1, 2012— 

5 ‘‘(A) is designed to exceed national build6 ing performance standards updated in accord7 ance with section 304 of the Energy Conserva8 tion and Production Act (42 U.S.C. 6833); 

9 ‘‘(B) accelerates use of cost-effective, inno10 vative technologies and strategies to minimize 

11 consumption of energy, water, and materials; 

12 and 

13 ‘‘(C) is located in accordance with a proc14 ess that considers sites with convenient access 

15 to public transportation alternatives. 

16 ‘‘(3) SECOND STAGE.—To the maximum extent 

17 practicable, each Federal agency shall ensure that 

18 any Federal building that enters the design phase on 

19 or after January 1, 2020, is designed to achieve net20 zero energy use by January 1, 2030.’’. 

21 (2) CONFORMING AMENDMENTS.—Section 

22 305(a)(3) of the Energy Conservation and Produc23 tion Act (42 U.S.C. 6834(a)(3)) is amended— 

24 (A) by striking subparagraph (B); and 


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1 (B) by redesignating subparagraphs (C) 

2 and (D) as subparagraphs (B) and (C), respec3 tively. 

4 (b) LEASES.— 

5 (1) IN GENERAL.—Section 435(a) of the En6 ergy Independence and Security Act of 2007 (42 

7 U.S.C. 17091(a)) is amended— 

8 (A) by striking ‘‘Except as’’ and inserting 

9 the following: 

10 ‘‘(1) ENERGY STAR LABEL.—Except as’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(2) ENERGY CONSUMPTION INFORMATION.— 

13 Effective beginning on the date that is 180 days 

14 after the date of enactment of the Practical Energy 

15 Plan Act of 2011, no Federal agency shall enter into 

16 or renew a lease of a commercial building unless 

17 there is clearly and publicly available for the build18 ing information concerning the actual energy con19 sumption of the building for each of the 5 most re20 cent years for which data are available, in a normal21 ized data format that permits data comparability, as 

22 determined by the Administrator of General Serv23 ices.’’. 

24 (2) EXCEPTION.—Section 435(b)(1) of the En25 ergy Independence and Security Act of 2007 (42 


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1 U.S.C. 17091(b)(1)) is amended by striking sub2 paragraph (B) and inserting the following: 

3 ‘‘(B) the agency— 

4 ‘‘(i) proposes to remain in the build5 ing that the agency has occupied pre6 viously; and 

7 ‘‘(ii) conducts a cost-benefit analysis 

8 that compares— 

9 ‘‘(I) the financial savings from 

10 moving to a building that meets the 

11 standards described in subsection (a); 

12 to 

13 ‘‘(II) the cost of relocating per14 sonnel and equipment;’’. 

15 (c) CONGRESSIONAL APPROVAL OF PROPOSED

16 PROJECTS.—Section 3307 of title 40, United States Code, 

17 is amended by adding at the end the following: 

18 ‘‘(i) AVAILABILITY OF FUNDS FOR DESIGN UP19 DATES.— 

20 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

21 for any project for which congressional approval is 

22 received under subsection (a) and for which the de23 sign has been substantially completed but construc24 tion has not begun, the Administrator of General 

25 Services may use appropriated funds to update the 


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1 project design to meet applicable Federal building 

2 energy efficiency standards established under section 

3 305 of the Energy Conservation and Production Act 

4 (42 U.S.C. 6834) and other requirements estab5 lished under section 3312. 

6 ‘‘(2) LIMITATION.—The use of funds under 

7 paragraph (1) shall not exceed 125 percent of the 

8 estimated energy or other cost savings associated 

9 with the updates as determined by a life-cycle cost 

10 analysis under section 544 of the National Energy 

11 Conservation Policy Act (42 U.S.C. 8254).’’. 

12 SEC. 212. ACCELERATING ENERGY SAVINGS PERFORMANCE 

13 CONTRACTS. 

14 Section 543(f)(4) of the National Energy Conserva15 tion Policy Act (42 U.S.C. 8253(f)(4)) is amended by 

16 striking ‘‘may’’ and inserting ‘‘shall’’. 

17 SEC. 213. SENSE OF CONGRESS ON INCLUSION OF ENERGY 

18 EFFICIENCY AS SELECTION CRITERIA FOR 

19 BASE CLOSURE AND REALIGNMENT DECI20 SIONS. 

21 It is the sense of Congress that the energy efficiency 

22 of military installations, including operating costs, inde23 pendence from the energy grid, and utilization of private 

24 sector resources and new technologies, should be one of 

25 the criteria used by the Secretary of Defense in making 


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1 recommendations for the closure or realignment of mili2 tary installations inside the United States under the Base 

3 Closure and Realignment Act of 1990 (part A of title 

4 XXIX of Public Law 101–510; 10 U.S.C. 2687 note) or 

5 any other provision of law. 

6 SEC. 214. FEDERAL PROPERTY REALIGNMENT AND SAV7 INGS. 

8 (a) DEFINITIONS.—In this section— 

9 (1) the term ‘‘agency’’— 

10 (A) means an Executive agency as defined 

11 under section 105 of title 5, United States 

12 Code; and 

13 (B) does not include the United States 

14 Postal Service; 

15 (2) the term ‘‘Director’’ means the Director of 

16 the Office of Management and Budget; 

17 (3) the term ‘‘disposal’’ means any action that 

18 constitutes the removal of a property from the Fed19 eral inventory or that produces revenue for the Fed20 eral Government from its inventory, including sale, 

21 deed, demolition, or exchange; 

22 (4) the term ‘‘Federal civilian real property’’— 

23 (A) means Federal real property assets, in24 cluding buildings, land, warehouses, facilities, 

25 or other physical structures under the custody 


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1 and control of any agency that are used for ci2 vilian purposes; 

3 (B) does not include— 

4 (i) military installations; 

5 (ii) any property that is excluded for 

6 reasons of national security or homeland 

7 security by the Director; 

8 (iii) any property that is excepted 

9 from the definition of the term ‘‘property’’ 

10 under section 102(9) of title 40, United 

11 States Code, however any constructed 

12 asset that may reside upon the property 

13 excepted from that definition shall be in14 cluded as Federal civilian real property; 

15 (iv) land managed as part of the na16 tional wildlife refuge system, but not any 

17 constructed asset within or on that land; 

18 (v) Indian lands, as defined under sec19 tion 203 of the Public Lands Corps Act of 

20 1993 (16 U.S.C. 1722), but not any con21 structed asset within or on the land; 

22 (vi) property governed by the first sec23 tion of the Tennessee Valley Authority Act 

24 of 1933 (16 U.S.C. 831); or 


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1 (vii) real property owned by the 

2 United States Postal Service; and 

3 (5) the term ‘‘military installation’’— 

4 (A) means a base, camp, post, station, 

5 yard, center, homeport facility for any ship, or 

6 other activity under the jurisdiction of the De7 partment of Defense, including any leased facil8 ity; and 

9 (B) does not include any facility used pri10 marily for civil works, rivers and harbors 

11 projects, or flood control. 

12 (b) INTERAGENCY REVIEW PROCESS.— 

13 (1) REDUCTION OF INVENTORY.—The General 

14 Services Administration shall identify opportunities 

15 for the Federal Government to significantly reduce 

16 the inventory of Federal civilian real property. 

17 (2) INDEPENDENT ANALYSIS.— 

18 (A) IN GENERAL.—The Director shall per19 form an independent analysis of the inventory 

20 of Federal civilian real property. 

21 (B) RECOMMENDATIONS.—To assist in the 

22 analysis, the Director shall obtain recommenda23 tions from agencies, which shall include the 

24 identification of— 


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1 (i) Federal civilian real properties that 

2 can be sold for proceeds and otherwise dis3 posed of, transferred, consolidated, co-lo4 cated, or reconfigured, so as to reduce the 

5 Federal civilian real property inventory 

6 and operating costs of the Federal Govern7 ment; 

8 (ii) operational efficiencies that the 

9 Federal Government can realize in its op10 eration and maintenance of Federal civil11 ian real properties; 

12 (iii) the anticipated cost of disposal, 

13 transfer, consolidation, co-location, or re14 configuration of Federal civilian real prop15 erties identified under paragraph (1); and 

16 (iv) the environmental effects of the 

17 disposal, transfer, consolidation, co-loca18 tion, or reconfiguration of the Federal civil 

19 real properties identified under paragraph 

20 (1) and of any reasonable alternatives to 

21 such Federal civil real properties, and po22 tential mitigation of any of the adverse en23 vironmental effects. 

24 (3) REVIEW OF THE RECOMMENDATIONS.—In 

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1 ices and the Secretary of Energy, the Director shall 

2 conduct a review of the recommendations provided 

3 by agencies. 

4 (4) FINAL RECOMMENDATIONS.—The Director 

5 shall notify each agency of the final recommendation 

6 of the Director of actions to be taken by the agency 

7 with respect to the applicable Federal civilian real 

8 property. 

9 (c) IMPLEMENTATION OF DIRECTOR RECOMMENDA10 TIONS.— 

11 (1) IN GENERAL.—Notwithstanding any other 

12 provision of law, each agency shall prepare and carry 

13 out each recommendation of the Director. 

14 (2) SCHEDULE.—Each agency shall— 

15 (A) begin preparations to implement rec16 ommendations of the Director as soon as prac17 ticable; and 

18 (B) complete implementation of all rec19 ommendations of the Director not later than 

20 the end of the 5-year period beginning on the 

21 date the agency received notification with re22 spect to the applicable Federal civilian real 

23 property. 

24 (3) EXTENUATING CIRCUMSTANCES.—For any 

25 recommendation that will take longer than the 5- 


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1 year period due to extenuating circumstances, an 

2 agency shall notify the Director as soon as the cir3 cumstance occurs with an estimated time to com4 plete the recommendation. In such cases, the Direc5 tor may extend the period for completion of the rec6 ommendation for a period of up to an additional 2 

7 years. 

8 (d) AGENCY IMPLEMENTATION AUTHORITY.—In im9 plementing any recommendation under this section, an 

10 agency may— 

11 (1) acquire such land, construct such replace12 ment facilities, and conduct such advance planning 

13 and design as may be required to transfer functions 

14 from 1 location to another; 

15 (2) provide outplacement assistance to civilian 

16 employees employed by the agency at a location sub17 ject to a recommendation; 

18 (3) carry out activities for purposes of environ19 mental restoration and mitigation at any such instal20 lation; and 

21 (4) reimburse other agencies for actions per22 formed at the request of the Director with respect 

23 to any such recommendation. 

24 (e) SPECIFIC AUTHORITIES.— 

25 (1) AUTHORITY UNDER THIS SECTION.— 


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1 (A) IN GENERAL.—Notwithstanding any 

2 other provision of the laws that govern the dis3 posal authorities of agencies, all disposals im4 plemented as a result of a recommendation of 

5 the Director shall be implemented in accordance 

6 with this section. If any other disposal authority 

7 for an agency is inconsistent with this section, 

8 the provisions of this section shall control the 

9 implementation of a disposal recommended by 

10 the Director. 

11 (B) OTHER AUTHORITIES.—To the extent 

12 that the other disposal authorities are otherwise 

13 consistent with this section, an agency shall im14 plement a recommendation of the Director to 

15 dispose a property by using those other disposal 

16 authorities of the agency, regardless of whether 

17 the agency— 

18 (i) has been delegated disposal author19 ity by the Administrator of the General 

20 Services Administration under subtitle I of 

21 title 40 or subtitle I of title 41, United 

22 States Code; 

23 (ii) has an independent disposal au24 thority; or 


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1 (iii) is required to work in partnership 

2 with the General Services Administration 

3 property disposal unit. 

4 (2) AUTHORIZED ACTIONS.—In accordance with 

5 this subsection, when implementing a recommenda6 tion to consolidate, reconfigure, co-locate, or realign 

7 a real property asset all agencies may take such ac8 tion as necessary to implement the recommendations 

9 of the Director. Consistent with this section, the Di10 rector may instruct an agency to use the expertise 

11 of the General Services Administration in carrying 

12 out a recommended consolidation, reconfiguration, 

13 co-location, or realignment. Consistent with law and 

14 available funding, any agency may contract with the 

15 General Services Administration for assistance or 

16 consultation on implementing a recommendation to 

17 consolidate, reconfigure, co-locate, or realign a real 

18 property asset. 

19 (3) SUSPENSION OF TRANSACTIONS.—If any 

20 Federal civilian real property is identified as an 

21 asset to be disposed, consolidated, reconfigured, or 

22 otherwise realigned in a recommendation of the Di23 rector, any transaction with respect to that property 

24 that would prevent a recommendation from being 

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1 riod beginning on the date of the notification re2 ceived by an agency with respect to the applicable 

3 Federal civilian real property. 

4 (f) DETERMINATIONS REGARDING CERTAIN TRANS5 ACTIONS.—Notwithstanding any other provision of law, 

6 for any transaction identified, recommended, or com7 menced as a result of this section, the Director shall deter8 mine whether and to what extent an agency shall imple9 ment the transaction consistent with any legal priorities 

10 or requirements to enter into a transaction to convey a 

11 Federal civilian real property for less than fair market 

12 value or in a transaction that mandates the exclusion of 

13 other market participants. 

14 (g) STATUTES NOT APPLICABLE.—Notwithstanding 

15 any other provision of law, any recommendation or com16 mencement under this section of a disposal, consolidation, 

17 reconfiguration, co-location, or realignment of civilian real 

18 property shall not be subject to— 

19 (1) section 545(b)(8) of title 40, United States 

20 Code; 

21 (2) sections 550, 554, and 553 of title 40, 

22 United States Code; 

23 (3) section 501 of Public Law 100–77 (42 

24 U.S.C. 11411); 


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1 (4) any section of An Act Authorizing the 

2 Transfer of Certain Real Property for Wildlife, or 

3 other Purposes (16 U.S.C. 667b); 

4 (5) section 47151 of title 49, United States 

5 Code; 

6 (6) sections 107 and 317 of title 23, United 

7 States Code; 

8 (7) section 1304(b) of title 40, United States 

9 Code; 

10 (8) section 13(d) of the Surplus Property Act 

11 of 1944 (50 U.S.C. App. 1622(d)); 

12 (9) any other provision of law authorizing the 

13 conveyance of real property owned by the Federal 

14 Government for no consideration; or 

15 (10) any congressional notification requirement 

16 other than that in section 545 of title 40, United 

17 States Code. 

18 (h) NO RESTRICTION ON USE OF FUNDS.—No provi19 sion of law shall be construed as restricting the use of 

20 funds for disposing or realigning Federal civilian real 

21 property in accordance with a recommendation of the Di22 rector, except in the case of a provision of law which spe23 cifically refers to a particular asset of Federal civilian real 

24 property and expressly states that such restriction shall 

25 apply to such asset notwithstanding this section. 


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1 (i) FUNDING.— 

2 (1) DEFINITIONS.—In this subsection— 

3 (A) the term ‘‘gross proceeds’’ means the 

4 gross proceeds received from the disposal of any 

5 Federal civilian real property in accordance 

6 with a recommendation of the Director under 

7 this section; 

8 (B) the term ‘‘related costs’’ means 

9 amounts— 

10 (i) to cover the necessary costs associ11 ated with— 

12 (I) the disposal of property; 

13 (II) consolidation, co-location, 

14 and reconfiguration actions; and 

15 (III) other actions taken to oth16 erwise realize operational efficiencies, 

17 including such actions as environ18 mental restoration; and 

19 (ii) for outplacement assistance to 

20 Federal employees who work at a Federal 

21 property that is affected by actions taken 

22 under this section, and whose employment 

23 would be terminated as a result of such 

24 disposal, consolidation, or other realign25 ment. 


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1 (2) USE OF FUNDS.— 

2 (A) IN GENERAL.—The Director shall de3 termine the amounts of gross proceeds to be de4 posited— 

5 (i) as miscellaneous receipts in the 

6 General Fund of the United States Treas7 ury; and 

8 (ii) in appropriations accounts of 

9 agencies in accordance with subparagraph 

10 (B). 

11 (B) AGENCY FUNDING.—Amounts depos12 ited under subparagraph (A)(ii) may be depos13 ited in an applicable agency appropriation ac14 count relating to— 

15 (i) related costs; 

16 (ii) real property management rein17 vestment; or 

18 (iii) the funding of any program es19 tablished under section 121, 201, 202, 

20 203, or 221 or an amendment made by 

21 that section. 

22 (C) AVAILABILITY.—Any amounts depos23 ited in an appropriations account under this 

24 subsection— 


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1 (i) shall be available for any author2 ized purpose of that account; and 

3 (ii) shall remain available until ex4 pended. 

5 Subtitle C—Industrial and Power 

6 Generation Energy Efficiency 

7 SEC. 221. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFI8 CIENCY REVOLVING LOAN PROGRAM. 

9 Section 399A of the Energy Policy and Conservation 

10 Act (42 U.S.C. 6371h–1) is amended— 

11 (1) in the section heading, by inserting ‘‘AND

12 INDUSTRY’’ before the period at the end; 

13 (2) by redesignating subsections (h) and (i) as 

14 subsections (i) and (j), respectively; and 

15 (3) by inserting after subsection (g) the fol16 lowing: 

17 ‘‘(h) STATE PARTNERSHIP INDUSTRIAL ENERGY EF18 FICIENCY REVOLVING LOAN PROGRAM.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall carry 

20 out a program under which the Secretary shall pro21 vide grants to eligible lenders to pay the Federal 

22 share of creating a revolving loan program under 

23 which loans are provided to commercial and indus24 trial manufacturers to implement commercially avail25 able technologies or processes that significantly reVerDate Mar 15 2010 02:33 Jul 02, 2011 Jkt 099200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\S1321.IS S1321

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1 duce systems energy intensity, including the use of 

2 energy intensive feedstocks and improved recycling 

3 of materials. 

4 ‘‘(2) ELIGIBLE LENDERS.—To be eligible to re5 ceive cost-matched Federal funds under this sub6 section, a lender shall— 

7 ‘‘(A) be a community or economic develop8 ment lender; 

9 ‘‘(B) be part of a partnership that includes 

10 participation by, at a minimum— 

11 ‘‘(i) a State or local government agen12 cy; and 

13 ‘‘(ii) a private financial institution or 

14 other provider of loan capital; 

15 ‘‘(C) submit an application to the Sec16 retary, and receive the approval of the Sec17 retary, for cost-matched Federal funds to carry 

18 out a loan program described in paragraph (1); 

19 and 

20 ‘‘(D) ensure that non-Federal funds are 

21 provided to match, on at least a dollar-for-dol22 lar basis, the amount of Federal funds that are 

23 provided to carry out a revolving loan program 

24 described in paragraph (1). 


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1 ‘‘(3) AWARD.—The amount of cost-matched 

2 Federal funds provided to an eligible lender shall not 

3 exceed $100,000,000 for any fiscal year. 

4 ‘‘(4) RECAPTURE OF AWARDS.— 

5 ‘‘(A) IN GENERAL.—An eligible lender that 

6 receives an award under paragraph (1) shall be 

7 required to repay to the Secretary an amount 

8 of cost-match Federal funds, as determined by 

9 the Secretary under subparagraph (B), if the 

10 eligible lender is unable or unwilling to operate 

11 a program described in this subsection for a pe12 riod of not less than 10 years beginning on the 

13 date on which the eligible lender first receives 

14 funds made available through the award. 

15 ‘‘(B) DETERMINATION BY SECRETARY.— 

16 The Secretary shall determine the amount of 

17 cost-match Federal funds that an eligible lender 

18 shall be required to repay to the Secretary 

19 under subparagraph (A) based on the consider20 ation by the Secretary of— 

21 ‘‘(i) the amount of non-Federal funds 

22 matched by the eligible lender; 

23 ‘‘(ii) the amount of loan losses in24 curred by the revolving loan program de25 scribed in paragraph (1); and 


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1 ‘‘(iii) any other appropriate factor, as 

2 determined by the Secretary. 

3 ‘‘(C) USE OF RECAPTURED COST-MATCH

4 FEDERAL FUNDS.—The Secretary may dis5 tribute to eligible lenders under this subsection 

6 each amount received by the Secretary under 

7 this paragraph. 

8 ‘‘(5) ELIGIBLE PROJECTS.—A program for 

9 which cost-matched Federal funds are provided 

10 under this subsection shall be designed to accelerate 

11 the implementation, at facilities located in the 

12 United States, of industrial and commercial applica13 tions of technologies or processes that substantially 

14 reduce the energy intensity of operations or produc15 tion of the facility, including reduction of energy in16 tensive feedstocks and improved recycling of mate17 rials in manufacturing. 

18 ‘‘(6) EVALUATION.—The Secretary shall evalu19 ate applications for cost-matched Federal funds 

20 under this subsection taking into consideration— 

21 ‘‘(A) the commitment to provide non-Fed22 eral funds in accordance with paragraph 

23 (2)(D); 

24 ‘‘(B) the plan of the program to encourage 

25 private lending for energy efficiency upgrades; 


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1 ‘‘(C) program economic sustainability; 

2 ‘‘(D) the capability of the applicant to ad3 minister the program; 

4 ‘‘(E) the quantity of energy savings or en5 ergy feedstock minimization; 

6 ‘‘(F) the energy intensity of areas to be 

7 served by the program; 

8 ‘‘(G) percentage electricity rate increases 

9 in areas to be served by the applicant that are 

10 attributable to implementation of environmental 

11 controls on existing power generation facilities 

12 and new power generation facilities; 

13 ‘‘(H) State adoption and progress on im14 plementation of energy efficiency building codes 

15 as established in section 304 of the Energy 

16 Conservation and Production Act (42 U.S.C. 

17 6833); and 

18 ‘‘(I) the ability to fund energy efficient 

19 projects on a timely basis after the date of the 

20 grant award. 

21 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 this subsection $500,000,000 for each of fiscal years 

24 2012 through 2016.’’. 


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1 SEC. 222. STUDY OF NEW SOURCE REVIEW TO ENCOURAGE 

2 ENERGY EFFICIENCY. 

3 (a) IN GENERAL.—The Comptroller General of the 

4 United States shall conduct a review to examine— 

5 (1) the impact of new source review require6 ments under the Clean Air Act (42 U.S.C. 7401 et 

7 seq.) and related laws on the ability of plant owners 

8 to improve energy efficiency of regulated major 

9 sources, including power generation for commercial 

10 sale and covered industrial sources; 

11 (2) the implementation of new source review re12 quirements by the Administrator of the Environ13 mental Protection Agency, including transparency 

14 and consistency in measurement and procedures; 

15 (3) the potential to increase energy efficiency in 

16 power generation, including— 

17 (A) likely consumer rates and emissions 

18 (at both the individual facility and system-wide 

19 levels); 

20 (B) the impact of the improvements; and 

21 (C) the impact of new source review re22 quirements and implementation by the Adminis23 trator on achieving efficiency gains; and 

24 (4) existing Federal programs to improve en25 ergy efficiency in power generation applications. 


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1 (b) REPORT.—Not later than 180 days after the date 

2 of enactment of this Act, the Comptroller General shall 

3 submit to the Committee on Energy and Natural Re4 sources of the Senate and the Committee on Natural Re5 sources of the House of Representatives a report on the 

6 results of the study conducted under subsection (a). 

7 Subtitle D—Procurement, Equip8 ment, and Appliance Efficiency 

9 SEC. 231. APPLIANCE AND EQUIPMENT EFFICIENCY. 

10 (a) COVERAGE.—Section 322(a) of the Energy Policy 

11 and Conservation Act (42 U.S.C. 6292(a)) is amended— 

12 (1) by designating paragraph (20) as paragraph 

13 (21); and 

14 (2) by inserting after paragraph (19) the fol15 lowing: 

16 ‘‘(20) Computer monitors and displays, per17 sonal computers, and cable, satellite, and fiber optic 

18 service set top boxes.’’. 

19 (b) ENERGY CONSERVATION STANDARDS.—Section 

20 325(l) of the Energy Policy and Conservation Act (42 

21 U.S.C. 6295(l)) is amended— 

22 (1) by striking ‘‘paragraph (19)’’ each place it 

23 appears and inserting ‘‘paragraph (21)’’; 

24 (2) in the first sentence of paragraph (3), by 

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1 sonal computers, and cable, satellite, and fiber optic 

2 service set top boxes’’ after ‘‘television sets’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(5) NOTICE.—If the Secretary finds that a 

5 covered product meets the criteria established under 

6 paragraph (1) but does not establish an energy con7 servation standard for the covered product, the Sec8 retary shall submit to the Committee on Energy and 

9 Natural Resources of the Senate and the Committee 

10 on Energy and Commerce of the House of Rep11 resentatives a notice indicating that the standard 

12 has not been established.’’. 

13 (c) DEFINITION OF INDUSTRIAL EQUIPMENT.—Sec14 tion 340(2)(B) of the Energy Policy and Conservation Act 

15 (42 U.S.C. 6311(2)(B)) is amended— 

16 (1) in clause (xi), by striking ‘‘and’’ at the end; 

17 (2) in clause (xii), by striking the period at the 

18 end and inserting ‘‘; and’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(xiii) other equipment.’’. 

21 (d) COVERED EQUIPMENT.—Section 342 of the En22 ergy Policy and Conservation Act (42 U.S.C. 6313) is 

23 amended by adding at the end the following: 


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1 ‘‘(g) COVERED EQUIPMENT.—The Secretary shall es2 tablish an energy conservation standard for each type or 

3 class of covered equipment described in section 340(1) if— 

4 ‘‘(1) the requirements of subsections (o) and 

5 (p) of section 325 are met for the type or class; 

6 ‘‘(2) substantial improvement in the energy effi7 ciency of products of the type or class is techno8 logically feasible; and 

9 ‘‘(3) the application of a labeling rule or vol10 untary labeling program to the type or class is not 

11 likely to be sufficient to induce manufacturers to 

12 produce, and consumers and other persons to pur13 chase, covered products of the type or class that 

14 achieve the maximum energy efficiency that is tech15 nologically feasible and economically justified.’’. 

16 (e) REPORT ON EFFICIENCY STANDARDS FOR ADDI17 TIONAL CONSUMER PRODUCTS AND COMMERCIAL AND IN18 DUSTRIAL EQUIPMENT.—Not later than 1 year after the 

19 date of enactment of this Act, the Secretary of Energy 

20 shall submit to the Committee on Energy and Commerce 

21 of the House of Representatives and the Committee on 

22 Energy and Natural Resources of the Senate a report that 

23 identifies— 

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1 ards (as of the date of enactment of this Act) that 

2 have significant national energy savings potential 

3 (including through usage of natural gas), as deter4 mined by the Secretary; 

5 (2) levels of potential energy savings for prod6 ucts and equipment identified under paragraph (1); 

7 (3) which of the products and equipment identi8 fied under paragraph (1) are likely, prima facie, to 

9 qualify as covered under authority of the Secretary 

10 in existence on the date of enactment of this Act, 

11 and a plan for formal review of those products and 

12 equipment under existing authority; and 

13 (4) which of the products identified under para14 graph (1) require additional authority for the Sec15 retary to be covered. 

16 SEC. 232. FEDERAL PROCUREMENT AND USAGE OF ENERGY 

17 EFFICIENT PRODUCTS. 

18 (a) IN GENERAL.—Section 553(b) of the National 

19 Energy Conservation Policy Act (42 U.S.C. 8259b(b)) is 

20 amended— 

21 (1) by striking paragraph (1) and inserting the 

22 following: 

23 ‘‘(1) REQUIREMENT.—Except as provided in 

24 paragraph (4), beginning on the date of enactment 

25 of the Practical Energy Plan Act of 2011, the head 


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1 of an agency shall procure, for not less than 95 per2 cent of the new contract actions, task orders, and 

3 delivery orders for products and services (other than 

4 for weapon systems) for the agency— 

5 ‘‘(A) an Energy Star rated product; 

6 ‘‘(B) a FEMP designated product; or 

7 ‘‘(C) any other highly energy efficient 

8 product that is— 

9 ‘‘(i) reasonably expected to exceed En10 ergy Star ratings; and 

11 ‘‘(ii) procured for the purposes of test12 ing and demonstrating new technologies to 

13 encourage commercial application.’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(4) EXEMPTION.—Paragraph (1) shall not 

16 apply if there are less than 2 products available that 

17 meet applicable energy efficiency criteria.’’. 

18 (b) GUIDANCE.—Not later than 1 year after the date 

19 of enactment of this Act, the Administrator of General 

20 Services, in consultation with the Secretary of Energy, 

21 shall issue guidance for Executive agencies to employ tools 

22 that achieve energy savings through the use of computer 

23 hardware, energy efficiency software, and power tools. 

24 (c) REPORTS ON PLANS AND SAVINGS.—Not later 

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1 ance under subsection (b), each Executive agency shall 

2 submit to the Administrator of General Services and make 

3 publicly available a report that describes— 

4 (1) the plan of the Executive agency for imple5 menting the guidance within the Executive agency; 

6 and 

7 (2) estimated energy and financial savings from 

8 employing the tools described in subsection (b). 

9 TITLE III—MEASUREMENT AND 

10 REVIEW 

11 SEC. 301. MEASUREMENT AND REVIEW. 

12 (a) IN GENERAL.—Not later than 90 days after the 

13 date of enactment of this Act, the Secretary of Energy, 

14 in consultation with the Administrator of the Environ15 mental Protection Agency and the Secretary of Transpor16 tation, shall submit to the appropriate committees of Con17 gress a list of Federal programs (including programs es18 tablished or modified under this Act and the amendments 

19 made by this Act), for which the Comptroller General of 

20 the United States shall carry out a study that monitors 

21 the progress of the programs in meeting the energy secu22 rity, economic competitiveness, and pollution reduction 

23 goals under this Act and the amendments made by this 

24 Act. 

25 (b) STUDY.— 


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1 (1) IN GENERAL.—Not later than 3 years after 

2 the date of enactment of this Act and every 3 years 

3 thereafter for the 12-year period beginning on the 

4 date of enactment of this Act, the Comptroller Gen5 eral of the United States shall— 

6 (A) carry out a study that monitors the 

7 progress of the programs described in sub8 section (a); 

9 (B) submit to the appropriate committees 

10 of Congress a report containing the findings of 

11 the study carried out under this subsection; and 

12 (C) publish reports and, to the maximum 

13 extent practicable, accompanying data for pub14 lic view on the Internet. 

15 (2) CONTENTS.—A study and report carried 

16 out under paragraph (1) shall include— 

17 (A) an examination of the effects the pro18 grams described in subsection (a) have had 

19 on— 

20 (i) Federal fiscal issues; 

21 (ii) the consumption, production, and 

22 import of oil and petroleum products; 

23 (iii) national energy production and 

24 demand; 


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1 (iv) pollution levels and greenhouse 

2 gas emissions; 

3 (v) power and fuel costs; 

4 (vi) energy intensity and economic 

5 productivity; and 

6 (vii) the advancement and deployment 

7 of technology; 

8 (B) any recommendations of the Comp9 troller General on improving the performance of 

10 the programs. 

Æ 


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