89–010 

Calendar No. 618 

111TH CONGRESS REPORT " ! SENATE 2d Session 111–332 

10 MILLION SOLAR ROOFS ACT 

SEPTEMBER 27, 2010.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 3460] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 3460) to require the Secretary of Energy to provide funds to States for rebates, loans, and other incentives to eligible individuals or entities for the purchase and installation of solar 

energy systems for properties located in the United States, and for 

other purposes, having considered the same, reports favorably 

thereon with an amendment and an amendment to the title and 

recommends that the bill, as amended, do pass. 

The amendments are as follows: 

1. Strike out all after the enacting clause and insert in lieu 

thereof the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘10 Million Solar Roofs Act of 2010’’. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) ELIGIBLE PARTICIPANT.—The term ‘‘eligible participant’’ means— 

(A) an owner of a home; 

(B) a business entity; 

(C) a local educational agency; and 

(D) any other individual or entity that the Secretary determines to be appropriate. 

(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning given the term 

in section 4 of the Indian Self-Determination and Education Assistance Act (25 

U.S.C. 450b). 

(3) INSTALLED NAMEPLATE CAPACITY.—The term ‘‘installed nameplate capacity’’ means the maximum output of a solar electric system under specific conditions designated by the manufacturer of the solar electric system. 

(4) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has 

the meaning given the term in section 9101 of the Elementary and Secondary 

Education Act of 1965 (20 U.S.C. 7801). 

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Energy. 


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(6) SOLAR ENERGY SYSTEM.—The term ‘‘solar energy system’’ means rooftop or 

ground-mounted solar equipment— 

(A) that is used to generate electricity or heat water; and 

(B) with an installed nameplate capacity not exceeding 1 megawatt or the 

thermal equivalent of 1 megawatt. 

SEC. 3. REBATES, LOANS, AND OTHER INCENTIVES FOR PURCHASE AND INSTALLATION OF 

SOLAR ENERGY SYSTEMS. 

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, 

the Secretary shall establish a program under which the Secretary shall provide 

competitive grants to States, Indian tribes, and local governments to provide rebates, loans, or other incentives to eligible participants for the purchase and installation of solar energy systems for properties located in the United States. 

(b) Implementation.— 

(1) COMPETITIVE GRANTS.— 

(A) IN GENERAL.—For each fiscal year, the Secretary shall provide competitive grants to States, Indian tribes, and local governments to be used 

in accordance with this section. 

(B) REQUIREMENTS.—The Secretary shall adopt and implement criteria 

for awarding competitive grants under subparagraph (A) to States, Indian 

tribes, and local governments that would— 

(i) provide the maximum leverage of Federal funds; 

(ii) provide for the maximum deployment of solar energy; 

(iii) ensure that grants are awarded to a diversity of geographic locations and recipients with different population sizes; 

(iv) provide not less than 2 percent of the funds available to Indian 

tribes and consortia of Indian tribes; and 

(v) provide a preference for grant recipients that have established 

and maintained, or agree to commit to establish and maintain, standards and policies to overcome barriers to distributed generation (including interconnection and net metering) in a manner consistent with the 

legal authorities of the grant recipient. 

(2) AUTHORIZED USE OF FUNDS.—Subject to subsection (c), competitive grants 

provided under this section may be used to expand an existing, or establish and 

fund a new— 

(A) solar rebate program; 

(B) solar loan program; 

(C) solar performance-based incentive program; or 

(D) solar incentive program, solar deployment program or project, or innovative solar financing program not described in subparagraphs (A) through 

(C), as determined by the Secretary. 

(3) PROGRAM REQUIREMENTS.—For each fiscal year during which a grant recipient uses funds provided under this section, the grant recipient shall— 

(A) certify to the Secretary that the funds will be used— 

(i) to supplement, expand, or create new programs or projects and 

will not supplant existing programs as to maximize program participation; and 

(ii) to deploy an increased quantity of solar energy systems; and 

(B) submit to the Secretary an implementation plan that contains— 

(i) projections for solar energy systems deployment; 

(ii) data regarding the number of eligible participants that are assisted under existing applicable State and local programs; and 

(iii) projections for— 

(I) additional solar energy system deployment; and 

(II) the number of additional eligible participants who will be 

covered by the annual implementation plan. 

(c) SOLAR ENERGY SYSTEM.—With respect to grant awards in any fiscal year 

under this section, the Secretary may specify the type and capacity of the solar energy system and type of deployment or incentive program for which the grant funds 

are made available. 

(d) NON-FEDERAL SHARE.—Each eligible entity that receives funds under this section shall be responsible for an amount equal to 20 percent of the amount of the 

provided funds. 

(e) ADMINISTRATIVE EXPENSES.— 

(1) IN GENERAL.—Not more than 5 percent of the amounts made available for 

each fiscal year under this section may be used to pay the administrative expenses of the Department of Energy that the Secretary determines to be necessary to carry out this Act (including expenses arising from monitoring and 

evaluation). 


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(2) ELIGIBLE ENTITIES; OTHER GRANT RECIPIENTS.—Grant recipients may use 

amounts made available for each fiscal year under this section to pay for administrative expenses in accordance with section 545(b)(3)(A) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17155(b)(3)(A)). 

(f) RELATIONSHIP TO OTHER LAW.—An eligible participant that receives a rebate 

under this section shall not be eligible for a rebate under section 206(c) of the Energy Policy Act of 2005 (42 U.S.C. 15853). 

(g) COORDINATION; CONSULTATION.—To the maximum extent practicable, the Secretary shall consult with the Secretary of the Treasury and the Chief Executive of 

each grant recipient that receives funds under this section to ensure that each program carried out by each grant recipient through the use of the funds is coordinated 

with each other applicable incentive or financing program of the Federal Government or any other applicable program. 

(h) MAXIMUM INCENTIVE.— (1) IN GENERAL.—With respect to each rebate, grant, and tax credit provided 

to an eligible participant under this section, the aggregate value of the grants, 

rebates, and tax credits may not exceed 50 percent of the cost to the purchaser 

of the purchase and installation of the solar energy system. 

(2) EFFECT.—Nothing in this subsection affects any solar loan or financing 

program under this section or any other law (including regulations). 

(i) GOAL.—It is the goal of the United States, through this Act and any appropriate incentive or research and development program, to install distributed solar 

energy systems on not less than 10,000,000 properties located in the United States 

by December 31, 2021. 

(j) REPORT REGARDING ADDITIONAL RECOMMENDATIONS.—Not later than 270 days 

after the date of enactment of this Act, the Secretary shall submit to the Committee 

on Energy and Natural Resources of the Senate and the Committee on Energy and 

Commerce of the House of Representatives a report that contains additional recommendations that the Secretary determines to be necessary to achieve the goal described in subsection (i), including any modification to the program established 

under subsection (a). 

(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

to the Secretary to carry out this section— (1) for fiscal year 2012, $250,000,000; and 

(2) for each of fiscal years 2013 through 2021, such sums as are necessary. 

Amend the title so as to read: ‘‘A bill to require the Secretary of 

Energy to provide competitive grants to States, Indian tribes, and 

local governments for rebates, loans, and other incentives to eligible individuals or entities for the purchase and installation of solar 

energy systems for properties located in the United States, and for 

other purposes.’’. 

PURPOSE

The purpose of S. 3460 is to require the Secretary of Energy to 

provide funds to States, Indian tribes, and local governments to 

provide rebates, loans, and other incentives to eligible participants 

for the purchase and installation of solar energy systems for properties located in the United States. 

BACKGROUND AND NEED

Despite the various state and federal financial incentives available to homeowners, such as the 30 percent federal tax credit in 

place through 2016, financing the cost of a residential photovoltaic 

(PV) and solar hot water heating systems remains challenging. 

Like other renewable energy technologies, the cost structure of 

solar energy systems is front-loaded with a high initial investment, 

followed by modest maintenance expenses, and essentially zero fuel 

costs. While the tax credit provides a significant consumer incentive by reducing the overall system price, it does not fully address 

the key barrier to adoption—high upfront capital cost. Proponents 

of the bill believe that if the proper incentives and structures can 

be put into place, the opportunity for residential PV and solar hot 


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water heating is significant. According to Navigant Consulting, the 

nation’s residential and commercial rooftop space could accommodate up to 710,000 megawatts of solar electric power. For comparison, total electricity-generating capacity in the U.S. today is about 

950,000 megawatts. 

LEGISLATIVE HISTORY

S. 3460 was introduced by Senator Sanders on June 7, 2010, and 

is cosponsored by Senators Specter, Cardin, Whitehouse, Kaufman, 

Gillibrand, Stabenow, Leahy, Boxer, Casey, Harkin, Lautenberg, 

Menendez, Merkley, Kerry, Cantwell, and Shaheen. The Subcommittee on Energy held a hearing on S. 3460 on June 15, 2010. 

At its July 21, 2010, business meeting the Committee on Energy 

and Natural Resources considered the bill, agreed to an amendment in the nature of a substitute, and an amendment to the long 

title, and agreed to the bill, as amended, on July 21, 2010, but 

lacked a sufficient quorum to report the bill. At its business meeting on August 5, 2010, the Committee ordered S. 3460 to be favorably reported, as previously amended. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on August 5, 2010, by a unanimous voice vote of a 

quorum present, recommends that the Senate pass S. 3460, if 

amended as described herein. 

COMMITTEE AMENDMENTS

During its consideration of S. 3460, the Committee adopted an 

amendment in the nature of a substitute, as described in the section-by-section analysis, and an amendment to the title. Significant 

changes from the original bill language include directing the Secretary to establish a competitive grant program to award funds to 

States, Indian tribes, and local governments instead of using the 

State Energy Program formula to award funding to States only. 

The amendment also adds the additional requirement that the Secretary design criteria for awarding competitive grants that: provide 

for the maximum leverage of federal funds as well as the maximum 

deployment of solar energy; ensure geographic and population diversity; provide at least 2 percent of the available funds to Indian 

tribes; and provide a preference for grant recipients that have established and maintained or agree to establish and maintain, 

standards and policies to overcome barriers to distributed generation in a manner consistent with the legal authorities of the grant 

recipient. Lastly, the amendment requires that with respect to each 

rebate, grant, and tax credit provided to an eligible participant 

under the program established by this Act, the aggregate value of 

the funding may not exceed 50 percent of the cost to the purchaser 

of the purchase and installation of the solar energy system. 

SECTION-BY-SECTION ANALYSIS

Section 1 sets forth the short title. 

Section 2 defines key terms used in the bill. 

Section 3(a) directs the Secretary to establish a program to provide competitive grants to States, Indian tribes, and local governVerDate Mar 15 2010 02:36 Oct 05, 2010 Jkt 089010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR332.XXX SR332

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ments to provide rebates, loans, or other incentives to eligible participants for the purchase and installation of solar energy systems 

for properties located in the United States. 

Subsection (b) directs the implementation of the program described in subsection (a). Paragraph (1) requires the Secretary to 

design criteria for awarding competitive grants that would: provide 

maximum leverage of federal funds; provide for the maximum deployment of solar energy; ensure geographic and population diversity in grants awarded; provide not less than 2 percent of the available funds to Indian tribes; and provide a preference for grant recipients that have established and maintained or agree to establish 

and maintain, standards and policies to overcome barriers to distributed generation in a manner consistent with the legal authorities of the grant recipient. Paragraph (2) authorizes competitive 

grant funds to be used to expand an existing or to establish and 

fund a new: solar rebate program; solar loan program; solar performance-based incentive program; or other solar deployment incentives or innovative solar financing programs as approved by the 

Secretary. Paragraph (3) requires that for each fiscal year, grant 

recipients must submit an implementation plan for the funds to the 

Secretary of Energy. The grant recipient must also certify to the 

Secretary that the awarded federal funds will expand or supplement, but not supplant, any existing solar programs, and will deploy additional solar energy systems. 

Subsection (c) authorizes the Secretary to specify the type and 

capacity of the solar energy system and type of deployment or incentive program eligible for grant funds. 

Subsection (d) establishes a non-federal cost match of 20 percent 

for grant recipients. 

Subsection (e) authorizes the Department of Energy to use up to 

five percent of the funds made available for each fiscal for administrative expenses. Grant recipients are permitted to use funds for 

administrative expenses consistent with the administrative expense 

requirements of the Energy Efficiency and Conservation Block 

Grant program, set forth in section 545(b)(3)(A) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17155(b)(3)(A)). 

Subsection (f) states that an eligible participant that receives a 

rebate under this section shall not be eligible for a rebate under 

section 206(c) of the Energy Policy Act of 2005 (42 U.S.C. 15853). 

Subsection (g) directs the Department of Energy to consult with 

the Department of the Treasury and grant recipients to ensure that 

each program carried out by the grant recipient is coordinated with 

other applicable incentive or financing programs of the Federal 

Government or any other applicable program. 

Subsection (h) requires with respect to each rebate, grant, and 

tax credit provided to an eligible participant under the program established under subsection (a), the aggregate value of the grants, 

rebates, and tax credits may not exceed 50 percent of the cost to 

the purchaser of the purchase and installation of the solar energy 

system. 

Subsection (i) establishes the national goal of achieving through 

this Act and any appropriate incentive or research and development program to install distributed solar energy systems on not 

less than 10,000,000 properties located in the United States by December 31, 2021. 


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Subsection (j) requires that the Department of Energy issue a report to Congress detailing recommendations necessary through this 

and other programs to meet the goal established in subsection (j) 

within 270 days after enactment of this Act. 

Subsection (k) authorizes appropriations of $250 million for fiscal 

year 2012 and such sums as are necessary for fiscal years 2013 

through 2021. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office. 

S. 3460—10 Million Solar Roofs Act of 2010 

Summary: S. 3460 would authorize the appropriation of $250 

million in 2012 and whatever sums are necessary in each of fiscal 

years 2013 through 2021 for the Department of Energy (DOE) to 

make grants to states to support installations of solar energy systems for eligible homes, businesses, and other structures. Assuming 

appropriation of the authorized and necessary amounts, CBO estimates that implementing S. 3460 would cost $617 million over the 

2011–2015 period. Enacting S. 3460 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

S. 3460 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 3460 is shown in the following table. The costs 

of this legislation fall within budget function 270 (energy). 

By fiscal year, in millions of dollars— 

2011 2012 2013 2014 2015 2011–2015 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ............................................................ 0 250 254 259 264 1,027 

Estimated Outlays .............................................................................. 0 75 150 183 209 617 

Basis of estimate: S. 3460 would authorize the appropriation of 

$250 million in 2012 and whatever sums are necessary over the 

2013–2021 period for DOE to make grants to state and local governments to provide rebates, loans, and other incentives to homeowners, businesses, and other eligible participants that purchase 

and install solar energy systems. (By comparison, DOE reports that 

the agency’s funding for research and development related to solar 

energy technologies in 2010 totaled about $230 million.) 

For this estimate, CBO assumes that funding levels over the 

2013–2021 period would remain at the $250 million level specified 

for 2012, adjusted for anticipated inflation. Assuming appropriation 

of those amounts and spending patterns consistent with similar 

DOE grant programs, CBO estimates that resulting outlays would 

total $617 million over the 2012–2015 period. Under the bill’s authorized funding through 2021, such spending would continue after 

2015, with annual outlays averaging about $275 million a year for 

several years after 2015. Based on information from DOE, CBO estimates that those amounts would support the installation of at 

least 100,000 solar energy systems annually. 

Pay-as-you-go considerations: None. 


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Intergovernmental and private-sector impact: S. 3460 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

State, local, and tribal governments would benefit from grants authorized by the bill. Any costs to those governments would be incurred voluntarily as a condition of federal assistance. 

Estimate prepared by: Federal Costs: Megan Carroll; Impact on 

State, Local, and Tribal Governments: Ryan Miller; Impact on the 

Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 3460. 

The bill is not a regulatory measure in the sense of imposing 

Government established standards or significant economic responsibilities on a private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Applying for grants authorized by S. 3460 may impose some additional paperwork on the States, Indian tribes, and local governments applying for the grants, and will require grant recipients to 

submit implementation plans and certify how the funds will be 

used. The Committee does not expect these additional paperwork 

burdens to be substantial in either time or financial cost. 

CONGRESSIONALLY DIRECTED SPENDING

S. 3460, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The views of the Administration on S. 3460 are included in the 

testimony from the Department of Energy received by the Committee at its June 15, 2010, hearing, which is set forth below: 

STATEMENT OF STEVEN G. CHALK, CHIEF OPERATING OFFICER AND ACTING DEPUTY ASSISTANT SECRETARY FOR RENEWABLE ENERGY, OFFICE OF ENERGY EFFICIENCY AND

RENEWABLE ENERGY, DEPARTMENT OF ENERGY

Madam Chairman, Ranking Member Risch, and Members of the Subcommittee, thank you for the opportunity to 

appear before you today to discuss proposed clean energy 

legislation. 

The Department and the Subcommittee share common 

goals of strengthening our economy, enhancing our national security, and protecting our environment. As part of 

the Recovery Act, the Office of Energy Efficiency and Renewable Energy (EERE), oversees a total of $16.8 billion 

in investments. To date, EERE has obligated 96 percent, 

or $16.07 billion, of its Recovery Act funds. The funds are 


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putting America to work laying the foundation for our 

clean energy future. The Department also appreciates the 

authorities you have provided in recent years in the Energy Policy Act of 2005 (EPAct) (P.L. 109–58) and the Energy Independence and Security Act of 2007 (EISA) (P.L. 

110–140). This year, the Committee has proposed further 

investment and we thank you for all your hard work in reporting the American Clean Energy Leadership Act (S. 

1462). 

Today, I am pleased to offer the Department’s perspective on five pending pieces of legislation related to energy 

efficiency and renewable energy. Note that many of the authorities outlined in the bills would simply reinforce existing authorities, and may not be necessary for the Department to carry out the activities in question. I will discuss 

them in the order listed in the hearing invitation letter I 

received from the Subcommittee. These include the 10 Million Solar Roofs Act of 2010 (S. 3460), the Supply Star Act 

of 2010 (S. 3396), the Improving Energy Efficiency and Renewable Energy Use By Federal Agencies Act of 2010 (S. 

3251), the Heavy Duty Hybrid Vehicle Research, Development, and Demonstration Act (S. 679), the Gas Turbine Efficiency Act of 2009 (S. 2900). 

S. 3460—10 MILLION SOLAR ROOFS ACT OF 2010

We thank the subcommittee and the sponsor of this legislation for your strong leadership on solar technologies 

over the years. The Department’s goals for solar electric 

technologies are to be cost competitive in their respective 

markets by 2015 and to reach a high penetration of solar 

installations. The Department is investing $232 million in 

2010 to support solar research across the development 

pipeline, from basic photovoltaic (PV) cell technologies to 

manufacturing scaleup to total system development. Within the $232 million, DOE is investing up to $50 million in 

concentrated solar power technology development and deployment related activities and $23 million to understand 

how solar technologies can be better integrated within existing electricity generation and transmission systems. In 

solar hot water heating, DOE is investing approximately 

an additional $6.5 million in 2010. 

The proposed legislation incorporates several significant 

features. We believe that rebates, loan programs, and performance based incentives are all effective means of stimulating demand. Allowing states to choose between these incentives will enable the Act to expand existing state programs that have been effective in promoting solar installations. In addition, the states’ matching funds requirements 

will leverage available federal appropriations and increase 

the resulting deployment of solar technologies, both of 

which are high priorities for the Department. 

To maximize the effectiveness of the proposed legislation, we would recommend two changes. First, while we 

support the state match requirement, we propose that the 

cost share be set at 50 percent to increase the potential leVerDate Mar 15 2010 02:36 Oct 05, 2010 Jkt 089010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6969 E:\HR\OC\SR332.XXX SR332

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1Source: Climate Change and Supply Chain Management, McKinsey Quarterly, McKinsey & 

Company, July 2008. 

verage of federal funds. Second, the Secretary should be 

given the ability to reduce this as necessary to increase the 

overall effectiveness of the program. We also believe the 

program could be designed in a creative way such as working with municipalities to promote photovoltaic installations through innovative local programs. We note that by our estimates, the $250 million authorized for FY 2012 would yield roughly 100,000 rooftop solar 

systems, and may not be sufficient to put us on a trajectory to meet the goal of 10 million solar roofs. With these 

changes, the legislation could be an effective tool in increasing deployment of solar electricity technologies Nationwide. We note that existing authorities, such as the 

competitive portion of the state energy program, would 

allow DOE to undertake such a program already. 

S. 3396—SUPPLY STAR ACT OF 2010

Supply chain energy efforts can make an important contribution to overall industrial efficiency and the competitive position of domestic suppliers. Analysis suggests that 

a large part of the carbon footprint for many consumer 

products can be attributed to the supply chain—from raw 

materials, transport, and packaging to the energy consumed in manufacturing processes—on the order of 40 to 

60 percent.1

The Supply Star legislation seeks to build upon existing 

best practices in the industrial community by establishing 

a voluntary recognition program that supports and promotes products and companies with highly energy- and resource-efficient supply chains. 

DOE and the Environmental Protection Agency (EPA) 

both have existing initiatives that address supply chain efficiency, such as Save Energy Now  at DOE and the 

Smart Way Transport TM program at EPA. The legislation 

should coordinate with and leverage these programs as a 

structure through which Supply Star activities could be 

conducted. For example, through its national Save Energy 

Now  initiative, DOE encourages manufacturing companies to engage their supply chains in energy and carbon 

management. Specifically, DOE develops processes and resources to assist companies in promoting energy management to their industrial suppliers and customers. Save Energy Now  LEADER Companies make a voluntary commitment to reduce their energy intensity by 25 percent in 

10 years. Many of these companies are interested in improving the efficiency of their supply chains as well. 

The Supply Star bill also builds upon Superior Energy 

Performance (SEP), a voluntary certification program 

working to provide industrial facilities with a roadmap for 

achieving continual improvement in energy efficiency 

while maintaining competitiveness. A central element of 

SEP is implementation of the forthcoming International 


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Organization for Standardization (ISO) 50001 energy management standard, with additional requirements to achieve 

and document energy intensity improvements. DOE is 

working through SEP to bring ISO 50001 to the U.S. Upon 

its expected publication in 2011 this American National 

Standards Institute-accredited program will provide companies with a framework for fostering energy-efficiency at 

the plant level and a consistent methodology for measuring 

and validating energy efficiency and intensity improvements. This new framework will be an important tool to 

integrate into supply chain efforts. 

S. 3251—IMPROVING ENERGY EFFICIENCY AND RENEWABLE

ENERGY USE BY FEDERAL AGENCIES ACT OF 2010

On October 5th, President Obama signed Executive 

Order 13514 requiring Federal agencies to set GHG emission reduction targets, increase energy efficiency, reduce 

fleet petroleum use, conserve water, reduce waste and promote environmentally-responsible produce purchases by 

federal agencies. With this action, the President directed 

agencies to demonstrate the Federal government’s commitment, over and above what is already being done, to reducing emissions and saving money. 

As a whole, the Federal government has made significant progress in meeting the energy requirements of EISA 

2007 and EPAct 2005. Further progress on these efforts 

would be bolstered by S. 3251. The Department is particularly supportive of provisions clarifying the definition of allowable ‘‘renewable’’ energy sources, and authorizing the 

creation of a revolving fund for Federal facility energy efficiency and renewable energy projects. 

The Department looks forward to working with the Subcommittee on legislation that would provide agencies with 

the flexibility to purchase renewable energy for appropriate time periods, that do not exceed asset life, create appropriate risk sharing between project developers and taxpayers, and that recognize the importance of fiscal responsibility and Congressional Budget Office scoring of contracts. This authority would provide opportunities for more 

on-site renewable power at Federal agencies and would 

provide strong support for growing our domestic clean energy economy. 

The Department’s recommended definition of renewable 

energy follows the definition in section 203 of EPAct 2005, 

with an additional recommendation to allow for both electric energy and thermal energy from renewable sources. It 

is very important to allow thermal energy to count as renewable energy, particularly because renewable thermal 

energy sources such as ground source heat pumps are 

often the lowest-cost option for displacing purchased energy and are already widely deployed. This approach contrasts with the current definition which is limited only to 

‘‘renewable electricity,’’ a definition that reduces incentives 

for this valuable and cost-effective form of renewable 

power. 


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The Department fully supports the creation of a revolving loan fund based on best practices and subject to appropriate interest rates for Federal facility energy efficiency 

and renewable energy projects. There is considerable experience and success at the state and local level with using 

revolving loan funds to assist innovative projects to improve energy efficiency. In addition, there is Federal experience with a similar concept within the General Services 

Administration (GSA) that funds agency relocations, and 

agencies reimburse the fund at slightly above costs to 

gradually increase the amount of funds available for lending. 

Federal agencies are already responding to the requirements of EISA Section 432 to survey their facilities for potential energy efficiency and renewable energy upgrades, 

as well as to complete energy audits and to report on 

measures taken. The Department recommends that the renewable energy facility surveys called for in S. 3251 Section 5 should be included as a modification of EISA Section 

432. 

DOE’s Federal Energy Management Program is already 

at work implementing provisions similar to the Federal energy management and data collection standard called for 

in S. 3251 Section 7. As required under EISA Section 432, 

DOE will publish overarching guidance for implementation 

of all Section 432 requirements in 2010. The Department 

is also developing a web-based tracking system for facilitylevel energy data and identified or implemented energy 

conservation measures per EISA. Tasking the GSA to deploy a similar publicly-available resource with facility-level 

energy data would create redundancy as the Department’s 

compliance tracking system will be deployed for use by all 

agencies in July 2010. 

S. 679—HEAVY DUTY HYBRID VEHICLE RESEARCH, 

DEVELOPMENT, AND DEMONSTRATION ACT

The program authorized by S. 679 would complement 

several of the Department’s current activities focused on 

increasing vehicle energy efficiency. One of those programs 

is the SuperTruck Program, in which DOE is seeking to 

improve the freight hauling efficiency of Class 8 trucks by 

50 percent. Other complementary efforts underway include: (1) the development of hybrid school bus technology; 

(2) research, development, and demonstration of mediumduty utility bucket trucks and passenger shuttles using a 

plug-in hybrid electric system; and (3) other medium and 

heavy duty truck deployment activities supported by our 

Clean Cities program. S. 679 has the potential to increase 

the fuel economy attainable by vehicles in this sector. 

There are several technical definitions and reporting requirements about which we would like to seek clarification, and the Department looks forward to working with 

the subcommittee on those provisions. 


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S. 2900—GAS TURBINE EFFICIENCY ACT OF 2009

The Gas Turbine Efficiency Act would establish a research, development, and technology demonstration program to improve the efficiency of gas turbines used in combined cycle and simple cycle power generation systems. 

The Department believes that industry has economic incentives to invest in research, development and demonstration to increase the efficiency of gas turbines. To the 

extent that the private sector underinvests in basic research, DOE has sufficient authority and existing programs to improve high temperature materials applicable to 

a range of energy technologies. 

The bill is similar to an existing successful program 

within DOE. The Advanced Turbine Systems Program, a 

research, development and demonstration collaborative between the Department’s Offices of Energy Efficiency and 

Renewable Energy and Fossil Energy, successfully developed and deployed advanced turbine material and coating 

leading to today’s turbine efficiencies. 

The legislation outlines activities DOE already performs. 

For example, through its Industries of the Future (crosscutting) investments, DOE’s Industrial Technology Program (ITP) aids the development of advanced manufacturing processes for the expanded use of lightweight materials such as titanium. Those breakthroughs help to drive 

production cost down and market impact up. In other efforts, ITP promoted advanced alloys of steel to support 

many of the new clean energy products being developed 

today. Nanocoating technologies are still another group of 

innovations developed with the assistance of ITP that now 

extend the life of tooling systems and provide wear resistance to reduce the cost of manufacture and extend the useful life of products. All of these efforts support the overarching objective of reducing the energy intensity of Industry to help advance the Administration’s energy security 

and environmental performance goals. 

The Department is committed to continuing research of 

high temperature materials which will help industry develop more efficient energy technologies. Meanwhile, the 

private sector has economic incentive to invest in the development and demonstration of efficient gas turbines. 

Therefore, private sector work on later stages of efficient 

natural gas turbine development and demonstration will 

likely be conducted without the need for additional funding 

authorizations beyond that already in place. 

In conclusion, the Department of Energy thanks the 

Subcommittee for the opportunity to comment on these 

proposed initiatives. We look forward to working with Congress to develop strong, effective clean energy policy to ensure U.S. leadership on these global issues and in the 

clean energy economy. 


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13 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by S. 3460, as ordered reported. 

Æ 


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