II 

Calendar No. 241 

114TH CONGRESS 

1ST SESSION S. 2089 

To provide for investment in clean energy, to empower and protect consumers, 

to modernize energy infrastructure, to cut pollution and waste, to invest 

in research and development, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2015 

Ms. CANTWELL (for herself, Mr. REID, Mr. WYDEN, Mr. DURBIN, Mr. SCHUMER, Ms. STABENOW, Mr. HEINRICH, Mr. FRANKEN, Ms. HIRONO, Ms. 

WARREN, Mrs. SHAHEEN, Ms. MIKULSKI, Mr. COONS, Mr. BENNET, Mr. 

MURPHY, Mr. MARKEY, Mrs. FEINSTEIN, Mr. BLUMENTHAL, Mr. 

PETERS, Mr. SCHATZ, Mr. REED, Mrs. MURRAY, Mr. CARDIN, Mr. CARPER, Mr. KING, Mr. MERKLEY, Mr. BOOKER, Mrs. BOXER, Ms. KLOBUCHAR, and Mrs. GILLIBRAND) introduced the following bill; which was 

read the first time 

SEPTEMBER 29, 2015 

Read the second time and placed on the calendar 

A BILL 

To provide for investment in clean energy, to empower and 

protect consumers, to modernize energy infrastructure, 

to cut pollution and waste, to invest in research and 

development, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘American Energy Innovation Act’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—EMPOWERING AND PROTECTING CONSUMERS 

Subtitle A—Access to Consumer Energy Information 

Sec. 1001. Consumer access to electric energy information. 

Subtitle B—Unfair Trade Practices Prohibition in Distributed Generation 

Sec. 1011. Investigation of distributed generation. 

Subtitle C—Enhanced Grid Security 

Sec. 1021. Cybersecurity threats. 

Sec. 1022. Enhanced grid security. 

Subtitle D—Capacity Markets Study 

Sec. 1031. GAO capacity market impact study. 

Subtitle E—Severe Coal Supply Emergency Response 

Sec. 1041. Severe coal supply emergency response. 

Subtitle F—Energy Markets 

Sec. 1051. Enhanced information on critical energy supplies. 

Sec. 1052. Working Group on Energy Markets. 

Sec. 1053. Study of regulatory framework for energy markets. 

Subtitle G—Transmission 

Sec. 1061. Report by transmission organizations on distributed energy resources and microgrid systems. 

Sec. 1062. Net metering study guidance. 

TITLE II—MODERNIZING INFRASTRUCTURE 

Subtitle A—QER Recommendations 

Sec. 2001. Natural gas distribution system improvement program. 

Sec. 2002. Strategy for managing the risks associated with the loss or disruption of power from large power transformers. 

Sec. 2003. Consolidation of release authorities. 

Sec. 2004. Modernization of Strategic Petroleum Reserve release authorities. 

Sec. 2005. Optimization of emergency response capability of Strategic Petroleum Reserve. 


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Subtitle B—Grid Modernization and Storage 

Sec. 2011. Definition of Secretary. 

Sec. 2012. Grid storage program. 

Sec. 2013. Technology demonstration and the distribution system. 

Sec. 2014. Microgrid systems for isolated and resilient communities. 

Sec. 2015. Electric system grid architecture, scenario development, and modeling. 

Sec. 2016. Voluntary model pathways. 

Sec. 2017. Performance metrics for electricity infrastructure providers. 

Sec. 2018. State and regional distribution planning. 

Sec. 2019. Authorization of appropriations. 

Sec. 2020. State consideration of resilience. 

Subtitle C—Advanced Manufacturing 

Sec. 2021. Advanced Manufacturing Office. 

Sec. 2022. National Advanced Manufacturing Plan. 

Sec. 2023. Advanced manufacturing supply chain report. 

Sec. 2024. Leveraging existing agency programs to assist small and medium 

manufacturers. 

Sec. 2025. Advanced Manufacturing Innovation Hubs. 

Sec. 2026. Advanced Materials Prize Competition Pilot Program. 

Sec. 2027. Pilot program with original equipment manufacturers and public 

utilities. 

Subtitle D—Building Better Trucks 

Sec. 2031. Advanced technology vehicles manufacturing incentive program. 

Subtitle E—Vehicle Innovation 

Sec. 2041. Findings. 

Sec. 2042. Objectives. 

Sec. 2043. Vehicle research and development program. 

Sec. 2044. Medium- and heavy-duty commercial and transit vehicles program. 

Sec. 2045. Authorization of appropriations. 

Subtitle F—Carbon Fiber Recycling 

Sec. 2051. Recycled carbon fiber study. 

Sec. 2052. Carbon fiber recycling demonstration project. 

Sec. 2053. Authorization of appropriations. 

Subtitle G—Job Creation Through Energy Efficient Manufacturing 

Sec. 2061. Purpose. 

Sec. 2062. Definitions. 

Sec. 2063. Financing Energy Efficient Manufacturing Program. 

Sec. 2064. Authorization of appropriations. 

Subtitle H—21st Century Energy Workforce 

Sec. 2101. Findings. 

Sec. 2102. Definitions. 

Sec. 2103. National Center of Excellence for the 21st Century Workforce. 

Sec. 2104. Energy workforce pilot grant program. 


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Subtitle I—Solar Installations 

Sec. 2111. Loan and grant program for solar installations in low-income and 

underserved areas. 

Subtitle J—Local Energy Supply and Resiliency Act 

Sec. 2121. Definitions. 

Sec. 2122. Distributed energy loan program. 

Sec. 2123. Technical assistance and grant program. 

Subtitle K—Geothermal Energy Opportunities 

Sec. 2131. National goals for production and site identification. 

Sec. 2132. Priority areas for development on Federal land. 

Sec. 2133. Facilitation of coproduction of geothermal energy on oil and gas 

leases. 

Sec. 2134. Cost-shared exploration. 

Sec. 2135. Use of geothermal lease revenues. 

Sec. 2136. Noncompetitive leasing of adjoining areas for development of geothermal resources. 

Sec. 2137. Large-scale geothermal energy. 

Sec. 2138. Report to Congress. 

Sec. 2139. Authorization of appropriations. 

Subtitle L—Clean Coal Technology Research 

Sec. 2141. Fossil energy. 

Subtitle M—Long-term Contracts 

Sec. 2151. Contracts for Federal purchases of energy. 

Subtitle N—Promoting Renewable Energy With Shared Solar 

Sec. 2161. Provision of interconnection service and net billing service for community solar facilities. 

Subtitle O—Report on Low- and No-Carbon Energy Technologies 

Sec. 2171. Report. 

Subtitle P—Loan Programs 

Sec. 2181. Terms and conditions for incentives for innovative technologies. 

Sec. 2182. State loan eligibility. 

TITLE III—CUTTING POLLUTION AND WASTE 

Subtitle A—Carbon Savings Goal 

Sec. 3001. Policy of United States on addressing climate change. 

Subtitle B—American Energy Efficiency 

Sec. 3011. Energy efficiency resource standard for retail electricity and natural 

gas suppliers. 

Subtitle C—Energy Efficiency Retrofit Program 


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Sec. 3021. Energy efficiency retrofit pilot program. 

Subtitle D—Weatherization Enhancement and Local Energy Efficiency 

Investment and Accountability 

Sec. 3031. Findings. 

Sec. 3032. Reauthorization of Weatherization Assistance Program. 

Sec. 3033. Grants for new, self-sustaining low-income, single-family, and multifamily housing energy retrofit model programs to eligible multiState housing and energy nonprofit organizations. 

Sec. 3034. Standards program. 

Sec. 3035. Reauthorization of State energy program. 

Subtitle E—Utility Energy Service Contracts Improvement 

Sec. 3041. Findings. 

Sec. 3042. Utility energy service contracts. 

Subtitle F—State Residential Building Energy Efficiency Loan Pilot Program 

Sec. 3051. State residential building energy efficiency upgrades loan pilot program. 

Subtitle G—Smart Energy and Water Efficiency 

Sec. 3061. Smart energy and water efficiency pilot program. 

Subtitle H—Regional Energy Partnerships 

Sec. 3071. Definitions. 

Sec. 3072. Regional energy partnerships. 

Sec. 3073. Authorization of appropriations. 

Subtitle I—Energy Productivity Innovation Challenge 

Sec. 3081. Definitions. 

Sec. 3082. Phase 1: Initial allocation of grants to States. 

Sec. 3083. Phase 2: Subsequent allocation of grants to States. 

Sec. 3084. Allocation of grants to Indian tribes. 

Sec. 3085. Administration. 

Sec. 3086. Authorization of appropriations. 

Subtitle J—Smart Buildings 

Sec. 3091. Definitions. 

Subtitle K—Energy Study 

Sec. 3101. Energy information study. 

Sec. 3102. Grants to utilities. 

Sec. 3103. Grants to States and units of local government. 

Sec. 3104. Input From Stakeholders. 

Sec. 3105. Report. 

Subtitle L—Alternative Fueled Vehicles 

Sec. 3111. Alternative fueled vehicle fleets and infrastructure. 

Subtitle M—Outer Continental Shelf 


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Sec. 3121. Repeal of outer Continental Shelf deep water and deep gas royalty 

relief. 

Sec. 3122. Disposition of qualified outer Continental Shelf revenues from 181 

Area, 181 South Area, and 2002–2007 planning areas of Gulf 

of Mexico. 

Subtitle N—Venting and Flaring of Gas 

Sec. 3131. Regulations to prevent or minimize venting and flaring of gas. 

Sec. 3132. Assessment of venting and flaring of gas in production operations 

in United States. 

Sec. 3133. Regulations. 

Subtitle O—Production Incentive Fee 

Sec. 3141. Production incentive fee. 

Subtitle P—Reauthorization of Desalination Act 

Sec. 3151. Reauthorization of Desalination Act. 

Sec. 3152. Promoting water efficiency with WaterSense. 

Sec. 3153. Increasing opportunities for agricultural conservation. 

Sec. 3154. Support for innovative water supply and conservation technologies. 

TITLE IV—INVESTING IN RESEARCH AND DEVELOPMENT 

Sec. 4001. Basic research. 

Sec. 4002. Advanced Research Projects Agency-Energy. 

TITLE V—INVESTING IN CLEAN ENERGY 

Sec. 5001. Amendment of 1986 Code. 

Subtitle A—Clean Energy Tax Credits 

Sec. 5011. Clean energy production credit. 

Sec. 5012. Clean energy investment credit. 

Sec. 5013. Extensions and modifications of various energy provisions. 

Subtitle B—Clean Fuel Tax Credits 

Sec. 5021. Clean fuel production credit. 

Sec. 5022. Temporary extension of existing fuel incentives. 

Subtitle C—Energy Efficiency Incentives 

Sec. 5031. Credit for new energy efficient residential buildings. 

Sec. 5032. Energy efficiency credit for existing residential buildings. 

Sec. 5033. Deduction for new energy efficient commercial buildings. 

Sec. 5034. Energy efficiency deduction for existing commercial buildings. 

Subtitle D—Clean Electricity and Fuel Bonds 

Sec. 5041. Clean Energy Bonds. 

Subtitle E—Treatment of Tar Sands Under Excise Taxes 

Sec. 5051. Clarification of tar sands as crude oil for excise tax purposes. 

Subtitle F—Closing Big Oil Tax Loopholes 


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Sec. 5061. Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers. 

Sec. 5062. Limitation on section 199 deduction attributable to oil, natural gas, 

or primary products thereof. 

Sec. 5063. Limitation on deduction for intangible drilling and development 

costs; amortization of disallowed amounts. 

Sec. 5064. Limitation on percentage depletion allowance for oil and gas wells. 

Sec. 5065. Limitation on deduction for tertiary injectants. 

TITLE VI—CONSERVATION REAUTHORIZATION 

Sec. 6001. National Park Service Centennial Fund. 

Sec. 6002. Land and Water Conservation Fund. 

Sec. 6003. Historic preservation fund. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) DEPARTMENT.—The term ‘‘Department’’ 

4 means the Department of Energy. 

5 (2) SECRETARY.—Except as otherwise provided 

6 in this Act, the term ‘‘Secretary’’ means the Sec7 retary of Energy. 

8 TITLE I—EMPOWERING AND 

9 PROTECTING CONSUMERS 

10 Subtitle A—Access to Consumer 

11 Energy Information 

12 SEC. 1001. CONSUMER ACCESS TO ELECTRIC ENERGY IN13 FORMATION. 

14 (a) IN GENERAL.—The Secretary shall encourage 

15 and support the adoption of policies that allow electricity 

16 consumers access to their own electricity data. 

17 (b) ELIGIBILITY FOR STATE ENERGY PLANS.—Sec18 tion 362(d) of the Energy Policy and Conservation Act 

19 (42 U.S.C. 6322(d)) is amended— 


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1 (1) in paragraph (16), by striking ‘‘and’’ after 

2 the semicolon at the end; 

3 (2) by redesignating paragraph (17) as para4 graph (18); and 

5 (3) by inserting after paragraph (16) the fol6 lowing: 

7 ‘‘(17) programs— 

8 ‘‘(A) to enhance consumer access to and 

9 understanding of energy usage and price infor10 mation, including consumers’ own residential 

11 and commercial electricity information; and 

12 ‘‘(B) to allow for the development and 

13 adoption of innovative products and services to 

14 assist consumers in managing energy consump15 tion and expenditures; and’’. 

16 (c) VOLUNTARY GUIDELINES FOR ELECTRIC CON17 SUMER ACCESS.— 

18 (1) DEFINITIONS.—In this subsection: 

19 (A) RETAIL ELECTRIC ENERGY INFORMA20 TION.—The term ‘‘retail electric energy infor21 mation’’ means— 

22 (i) the electric energy consumption of 

23 an electric consumer over a defined time 

24 period; 


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1 (ii) the retail electric energy prices or 

2 rates applied to the electricity usage for 

3 the defined time period described in clause 

4 (i) for the electric consumer; 

5 (iii) the estimated cost of service by 

6 the consumer, including (if smart meter 

7 usage information is available) the esti8 mated cost of service since the last billing 

9 cycle of the consumer; and 

10 (iv) in the case of nonresidential elec11 tric meters, any other electrical informa12 tion that the meter is programmed to 

13 record (such as demand measured in kilo14 watts, voltage, frequency, current, and 

15 power factor). 

16 (B) SMART METER.—The term ‘‘smart 

17 meter’’ means the device used by an electric 

18 utility that— 

19 (i)(I) measures electric energy con20 sumption by an electric consumer at the 

21 home or facility of the electric consumer in 

22 intervals of 1 hour or less; and 

23 (II) is capable of sending electric en24 ergy usage information through a commu25 nications network to the electric utility; or 


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1 (ii) meets the guidelines issued under 

2 paragraph (2). 

3 (2) VOLUNTARY GUIDELINES FOR ELECTRIC

4 CONSUMER ACCESS.— 

5 (A) IN GENERAL.—Not later than 180 

6 days after the date of enactment of this Act, 

7 subject to subparagraph (B), the Secretary 

8 shall issue voluntary guidelines that establish 

9 model standards for implementation of retail 

10 electric energy information access in States. 

11 (B) CONSULTATION.—Before issuing the 

12 voluntary guidelines, the Secretary shall— 

13 (i) consult with— 

14 (I) State and local regulatory au15 thorities, including the National Asso16 ciation of Regulatory Utility Commis17 sioners; 

18 (II) other appropriate Federal 

19 agencies, including the National Insti20 tute of Standards and Technology; 

21 (III) consumer and privacy advo22 cacy groups; 

23 (IV) utilities; 

24 (V) the National Association of 

25 State Energy Officials; and 


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1 (VI) other appropriate entities, 

2 including groups representing com3 mercial and residential building own4 ers and groups that represent demand 

5 response and electricity data devices 

6 and services; and 

7 (ii) provide notice and opportunity for 

8 comment. 

9 (C) STATE AND LOCAL REGULATORY AC10 TION.—In issuing the voluntary guidelines, the 

11 Secretary shall, to the maximum extent prac12 ticable, be guided by actions taken by State and 

13 local regulatory authorities to ensure electric 

14 consumer access to retail electric energy infor15 mation, including actions taken after consider16 ation of the standard established under section 

17 111(d)(17) of the Public Utility Regulatory 

18 Policies Act of 1978 (16 U.S.C. 2621(d)(17)). 

19 (D) CONTENTS.— 

20 (i) IN GENERAL.—The voluntary 

21 guidelines shall provide guidance on issues 

22 necessary to carry out this subsection, in23 cluding— 

24 (I) the timeliness and specificity 

25 of retail electric energy information; 


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1 (II) appropriate nationally recog2 nized open standards for data; 

3 (III) the protection of data secu4 rity and electric consumer privacy, in5 cluding consumer consent require6 ments; and 

7 (IV) issues relating to access of 

8 electric energy information for owners 

9 and managers of multitenant commer10 cial and residential buildings. 

11 (ii) INCLUSIONS.—The voluntary 

12 guidelines shall include guidance that— 

13 (I) retail electric energy informa14 tion should be made available to elec15 tric consumers (and third-party des16 ignees of the electric consumers) in 

17 the United States— 

18 (aa) in an electronic ma19 chine readable form, without ad20 ditional charge, in conformity 

21 with standards developed through 

22 a voluntary, consensus-based, 

23 multistakeholder process; 

24 (bb) as timely as is reason25 ably practicable; 


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1 (cc) at the level of specificity 

2 that the data is transmitted by 

3 the meter or as is reasonably 

4 practicable; and 

5 (dd) in a manner that pro6 vides adequate protections for the 

7 security of the information and 

8 the privacy of the electric con9 sumer; 

10 (II) in the case of an electric con11 sumer that is served by a smart meter 

12 that can also communicate energy 

13 usage information to a device or net14 work of an electric consumer or a de15 vice or network of a third party au16 thorized by the consumer, considers 

17 providing to the consumer or third18 party designee, at a minimum, access 

19 to usage information (not including 

20 price information) of the consumer di21 rectly from the smart meter; 

22 (III) retail electric energy infor23 mation should be provided by the elec24 tric utility of the consumer or such 

25 other entity as may be designated by 


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1 the applicable electric retail regulatory 

2 authority; 

3 (IV) retail electric energy infor4 mation of the consumer should be 

5 made available to the consumer 

6 through a website or other electronic 

7 access authorized by the electric con8 sumer, for a period of at least 13 

9 months after the date on which the 

10 usage occurred; 

11 (V) consumer access to data, in12 cluding data provided to owners and 

13 managers of commercial and multi14 family buildings with multiple tenants, 

15 should not interfere with or com16 promise the integrity, security, or pri17 vacy of the operations of a utility and 

18 the electric consumer; 

19 (VI) electric energy information 

20 relating to usage information gen21 erated by devices in or on the prop22 erty of the consumer that is trans23 mitted to the electric utility should be 

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1 sumer or the third-party agent des2 ignated by the electric consumer; and 

3 (VII) the same privacy and secu4 rity requirements applicable to the 

5 contracting utility under subclause 

6 (I)(dd) should apply to third-party 

7 agents contracting with a utility to 

8 process the customer data of that util9 ity. 

10 (E) REVISIONS.—The Secretary shall peri11 odically review and, as necessary, revise the vol12 untary guidelines to reflect changes in tech13 nology, privacy needs, and the market for elec14 tric energy and services. 

15 (d) VERIFICATION AND IMPLEMENTATION.— 

16 (1) IN GENERAL.—A State may submit to the 

17 Secretary a description of the data sharing policies 

18 of the State relating to consumer access to electric 

19 energy information for certification by the Secretary 

20 that the policies meet the voluntary guidelines issued 

21 under subsection (c)(2). 

22 (2) ASSISTANCE.—Subject to the availability of 

23 funds under paragraph (3), the Secretary shall make 

24 Federal amounts available to any State that has 

25 data sharing policies described in paragraph (1) that 


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1 the Secretary certifies meets the voluntary guidelines 

2 issued under subsection (c)(2) to assist the State in 

3 implementing section 362(d)(17) of the Energy Pol4 icy and Conservation Act (42 U.S.C. 6322(d)(17)). 

5 (3) AUTHORIZATION OF APPROPRIATIONS.— 

6 There is authorized to be appropriated to carry out 

7 this subsection $10,000,000 for fiscal year 2016, to 

8 remain available until expended. 

9 Subtitle B—Unfair Trade Practices 

10 Prohibition in Distributed Gen11 eration 

12 SEC. 1011. INVESTIGATION OF DISTRIBUTED GENERATION. 

13 (a) DEFINITIONS.—In this section: 

14 (1) DISTRIBUTED GENERATION.—The term 

15 ‘‘distributed generation’’ means the generation of 

16 electric energy for use at or near the point of gen17 eration. 

18 (2) ELECTRIC CONSUMER.—The term ‘‘electric 

19 consumer’’ means any person to whom electric en20 ergy is sold for purposes other than resale. 

21 (3) ELECTRIC UTILITY.—The term ‘‘electric 

22 utility’’ means any person that sells electric energy. 

23 (4) INTERCONNECTION PRACTICE.—The term 

24 ‘‘interconnection practice’’ means any rate, charge, 


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1 fee, requirement, or contractual term required by an 

2 electric utility— 

3 (A) to connect a distributed energy facility 

4 owned or operated by an electric consumer to 

5 facilities of the electric utility; 

6 (B) to purchase from an electric consumer 

7 electric energy generated by a distributed gen8 eration facility; or 

9 (C) to sell electric energy to an electric 

10 consumer that owns or operates a distributed 

11 generation facility. 

12 (b) INVESTIGATION.—The Federal Trade Commis13 sion shall conduct an investigation to determine the extent 

14 to which interconnection practices impede the use of dis15 tributed generation. 

16 (c) REPORT.—On completion of the investigation 

17 under subsection (b), the Federal Trade Commission 

18 shall— 

19 (1) identify any interconnection practice that 

20 substantially injures electric consumers and violates 

21 public policies promoting the development of distrib22 uted generation; 

23 (2) determine whether any interconnection 

24 practice identified under paragraph (1) is an unfair 

25 act or practice in or affecting commerce in violation 


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1 of section 5 of the Federal Trade Commission Act 

2 (15 U.S.C. 45); and 

3 (3) report to Congress the findings and conclu4 sions of the investigation (including the determina5 tions under paragraphs (1) and (2)) and any rec6 ommendations for additional legislation that the 

7 Commission determines is needed to remove unfair 

8 impediments to the development of distributed gen9 eration. 

10 Subtitle C—Enhanced Grid 

11 Security 

12 SEC. 1021. CYBERSECURITY THREATS. 

13 Part II of the Federal Power Act (16 U.S.C. 824 et 

14 seq.) is amended by adding at the end the following: 

15 ‘‘SEC. 224. CYBERSECURITY THREATS. 

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

17 ‘‘(1) BULK-POWER SYSTEM.—The term ‘bulk18 power system’ has the meaning given the term in 

19 section 215. 

20 ‘‘(2) CYBERSECURITY THREAT.—The term ‘cy21 bersecurity threat’ means the imminent danger of an 

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1 ware, software, and data) essential to the reliable 

2 operation of the bulk-power system. 

3 ‘‘(3) ELECTRIC RELIABILITY ORGANIZATION.— 

4 The term ‘Electric Reliability Organization’ has the 

5 meaning given the term in section 215. 

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

7 the Secretary of Energy. 

8 ‘‘(b) EMERGENCY AUTHORITY OF SECRETARY.— 

9 ‘‘(1) IN GENERAL.—If the President notifies 

10 the Secretary that the President has made a deter11 mination that immediate action is necessary to pro12 tect the bulk-power system from a cybersecurity 

13 threat, the Secretary may require, by order and with 

14 or without notice, any entity that is registered with 

15 the Electric Reliability Organization as an owner, 

16 operator, or user of the bulk-power system to take 

17 such actions as the Secretary determines will best 

18 avert or mitigate the cybersecurity threat. 

19 ‘‘(2) WRITTEN EXPLANATION.—As soon as 

20 practicable after notifying the Secretary under para21 graph (1), the President shall— 

22 ‘‘(A) provide to the Secretary, in writing, 

23 a record of the determination and an expla24 nation of the reasons for the determination; and 


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1 ‘‘(B) promptly notify, in writing, congres2 sional committees of relevant jurisdiction, in3 cluding the Committee on Energy and Natural 

4 Resources of the Senate and the Committee on 

5 Energy and Commerce of the House of Rep6 resentatives, of the contents of, and justification 

7 for, the directive or determination. 

8 ‘‘(3) COORDINATION WITH CANADA AND MEX9 ICO.—In exercising the authority pursuant to this 

10 subsection, the Secretary is encouraged to consult 

11 and coordinate with the appropriate officials in Can12 ada and Mexico responsible for the protection of cy13 bersecurity of the interconnected North American 

14 electricity grid. 

15 ‘‘(4) CONSULTATION.—Before exercising au16 thority pursuant to this subsection, to the maximum 

17 extent practicable, taking into consideration the na18 ture of an identified cybersecurity threat and the ur19 gency of need for action, the Secretary shall consult 

20 regarding implementation of actions that will effec21 tively address the cybersecurity threat with— 

22 ‘‘(A) any entities potentially subject to the 

23 cybersecurity threat that own, control, or oper24 ate bulk-power system facilities; 

25 ‘‘(B) the Electric Reliability Organization; 


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1 ‘‘(C) the Electricity Sub-sector Coordi2 nating Council (as established by the Electric 

3 Reliability Organization); and 

4 ‘‘(D) officials of other Federal departments 

5 and agencies, as appropriate. 

6 ‘‘(5) COST RECOVERY.— 

7 ‘‘(A) IN GENERAL.—The Commission shall 

8 adopt regulations that permit entities subject to 

9 an order under paragraph (1) to seek recovery 

10 of prudently incurred costs required to imple11 ment actions ordered by the Secretary under 

12 this subsection. 

13 ‘‘(B) REQUIREMENTS.—Any rate or charge 

14 approved under regulations adopted pursuant to 

15 this paragraph— 

16 ‘‘(i) shall be just and reasonable; and 

17 ‘‘(ii) shall not be unduly discrimina18 tory or preferential. 

19 ‘‘(c) DURATION OF EMERGENCY ORDERS.—An order 

20 issued by the Secretary pursuant to subsection (b) shall 

21 remain in effect for not longer than the 30-day period be22 ginning on the effective date of the order, unless, during 

23 that 30 day-period, the Secretary— 


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1 ‘‘(1) provides to interested persons an oppor2 tunity to submit written data, recommendations, and 

3 arguments; and 

4 ‘‘(2) affirms, amends, or repeals the order, sub5 ject to the condition that an amended order shall not 

6 exceed a total duration of 90 days.’’. 

7 SEC. 1022. ENHANCED GRID SECURITY. 

8 (a) DEFINITIONS.—In this section: 

9 (1) ELECTRIC UTILITY.—The term ‘‘electric 

10 utility’’ has the meaning given the term in section 

11 3 of the Federal Power Act (16 U.S.C. 796). 

12 (2) ES-ISAC.—The term ‘‘ES-ISAC’’ means 

13 the Electricity Sector Information Sharing and 

14 Analysis Center. 

15 (3) NATIONAL LABORATORY.—The term ‘‘Na16 tional Laboratory’’ has the meaning given the term 

17 in section 2 of the Energy Policy Act of 2005 (42 

18 U.S.C. 15801). 

19 (4) SECTOR-SPECIFIC AGENCY.—The term 

20 ‘‘Sector-Specific Agency’’ has the meaning given the 

21 term in the Presidential policy directive entitled 

22 ‘‘Critical Infrastructure Security and Resilience’’, 

23 numbered 21, and dated February 12, 2013. 

24 (b) SECTOR-SPECIFIC AGENCY FOR CYBERSECURITY

25 FOR THE ENERGY SECTOR.— 


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1 (1) IN GENERAL.—The Department shall be the 

2 lead Sector-Specific Agency for cybersecurity for the 

3 energy sector. 

4 (2) DUTIES.—As the designated Sector-Specific 

5 Agency for cybersecurity, the duties of the Depart6 ment shall include— 

7 (A) coordinating with the Department of 

8 Homeland Security and other relevant Federal 

9 departments and agencies; 

10 (B) collaborating with— 

11 (i) critical infrastructure owners and 

12 operators; and 

13 (ii) as appropriate— 

14 (I) independent regulatory agen15 cies; and 

16 (II) State, local, tribal and terri17 torial entities; 

18 (C) serving as a day-to-day Federal inter19 face for the dynamic prioritization and coordi20 nation of sector-specific activities; 

21 (D) carrying out incident management re22 sponsibilities consistent with applicable law (in23 cluding regulations) and other appropriate poli24 cies or directives; 


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1 (E) providing, supporting, or facilitating 

2 technical assistance and consultations for the 

3 energy sector to identify vulnerabilities and help 

4 mitigate incidents, as appropriate; and 

5 (F) supporting the reporting requirements 

6 of the Department of Homeland Security under 

7 applicable law by providing, on an annual basis, 

8 sector-specific critical infrastructure informa9 tion. 

10 (c) CYBERSECURITY FOR THE ENERGY SECTOR RE11 SEARCH, DEVELOPMENT, AND DEMONSTRATION PRO12 GRAM.— 

13 (1) IN GENERAL.—The Secretary, in consulta14 tion with appropriate Federal agencies, the energy 

15 sector, the States, and other stakeholders, shall 

16 carry out a program— 

17 (A) to develop advanced cybersecurity ap18 plications and technologies for the energy sec19 tor— 

20 (i) to identify and mitigate 

21 vulnerabilities, including— 

22 (I) dependencies on other critical 

23 infrastructure; and 

24 (II) impacts from weather and 

25 fuel supply; and 


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1 (ii) to advance the security of field de2 vices, third-party control systems, and ap3 plications, including— 

4 (I) systems for generation, trans5 mission, distribution, end use, and 

6 market functions; 

7 (II) specific electric grid elements 

8 including advanced metering, demand 

9 response, distributed generation, and 

10 electricity storage; 

11 (III) forensic analysis of infected 

12 systems; and 

13 (IV) secure communications; 

14 (B) to leverage electric grid architecture as 

15 a means to assess risks to the energy sector, in16 cluding by implementing an all-hazards ap17 proach to communications infrastructure, con18 trol systems architecture, and power systems 

19 architecture; 

20 (C) to perform pilot demonstration projects 

21 with the energy sector to gain experience with 

22 new technologies; and 

23 (D) to develop workforce development cur24 ricula for energy sector-related cybersecurity. 


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1 (2) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this subsection $65,000,000 for each of fiscal years 

4 2017 through 2025. 

5 (d) ENERGY SECTOR COMPONENT TESTING FOR

6 CYBERRESILIENCE PROGRAM.— 

7 (1) IN GENERAL.—The Secretary shall carry 

8 out a program— 

9 (A) to establish a cybertesting and mitiga10 tion program to identify vulnerabilities of en11 ergy sector supply chain products to known 

12 threats; 

13 (B) to oversee third-party cybertesting; 

14 and 

15 (C) to develop procurement guidelines for 

16 energy sector supply chain components. 

17 (2) AUTHORIZATION OF APPROPRIATIONS.— 

18 There is authorized to be appropriated to carry out 

19 this subsection $15,000,000 for each of fiscal years 

20 2017 through 2025. 

21 (e) ENERGY SECTOR OPERATIONAL SUPPORT FOR

22 CYBERRESILIENCE PROGRAM.— 

23 (1) IN GENERAL.—The Secretary may carry out 

24 a program— 

25 (A) to enhance and periodically test— 


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1 (i) the emergency response capabilities 

2 of the Department; and 

3 (ii) the coordination of the Depart4 ment with other agencies, the National 

5 Laboratories, and private industry; 

6 (B) to expand cooperation of the Depart7 ment with the public sector and intelligence 

8 communities for energy sector-related threat 

9 collection and analysis; 

10 (C) to enhance the tools of the Department 

11 and ES-ISAC for monitoring the status of the 

12 energy sector; 

13 (D) to expand industry participation in 

14 ES-ISAC; and 

15 (E) to provide technical assistance to small 

16 electric utilities for purposes of assessing 

17 cybermaturity level. 

18 (2) AUTHORIZATION OF APPROPRIATIONS.— 

19 There is authorized to be appropriated to carry out 

20 this subsection $10,000,000 for each of fiscal years 

21 2017 through 2025. 

22 (f) MODELING AND ASSESSING ENERGY INFRA23 STRUCTURE RISK.— 

24 (1) IN GENERAL.—The Secretary shall develop 

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1 ergy networks and applications, including electric, 

2 natural gas, and oil exploration, transmission, and 

3 delivery. 

4 (2) SECURITY AND RESILIENCY OBJECTIVE.— 

5 The objective of the program developed under para6 graph (1) is to increase the functional preservation 

7 of the electric grid operations or natural gas and oil 

8 operations in the face of natural and human-made 

9 threats and hazards, including electric magnetic 

10 pulse and geomagnetic disturbances. 

11 (3) ELIGIBLE ACTIVITIES.—In carrying out the 

12 program developed under paragraph (1), the Sec13 retary may— 

14 (A) develop capabilities to identify 

15 vulnerabilities and critical components that pose 

16 major risks to grid security if destroyed or im17 paired; 

18 (B) provide modeling at the national level 

19 to predict impacts from natural or human-made 

20 events; 

21 (C) develop a maturity model for physical 

22 security and cybersecurity; 

23 (D) conduct exercises and assessments to 

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1 tric grid, including providing mitigation rec2 ommendations; 

3 (E) conduct research hardening solutions 

4 for critical components of the electric grid; 

5 (F) conduct research mitigation and recov6 ery solutions for critical components of the elec7 tric grid; and 

8 (G) provide technical assistance to States 

9 and other entities for standards and risk anal10 ysis. 

11 (4) AUTHORIZATION OF APPROPRIATIONS.— 

12 There is authorized to be appropriated to carry out 

13 this subsection $10,000,000 for each of fiscal years 

14 2017 through 2025. 

15 (g) LEVERAGING EXISTING PROGRAMS.—The pro16 grams established under this section shall be carried out 

17 consistent with— 

18 (1) the report of the Department entitled 

19 ‘‘Roadmap to Achieve Energy Delivery Systems Cy20 bersecurity’’ and dated 2011; 

21 (2) existing programs of the Department; and 

22 (3) any associated strategic framework that 

23 links together academic and National Laboratory re24 searchers, electric utilities, manufacturers, and any 


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1 other relevant private industry organizations, includ2 ing the Electricity Sub-sector Coordinating Council. 

3 (h) STUDY.— 

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

5 after the date of enactment of this Act, the Sec6 retary, in consultation with the Federal Energy Reg7 ulatory Commission and the North American Elec8 tric Reliability Corporation, shall conduct a study to 

9 explore alternative management structures and fund10 ing mechanisms to expand industry membership and 

11 participation in ES-ISAC. 

12 (2) REPORT.—The Secretary shall submit to 

13 the appropriate committees of Congress a report de14 scribing the results of the study conducted under 

15 paragraph (1). 

16 Subtitle D—Capacity Markets 

17 Study 

18 SEC. 1031. GAO CAPACITY MARKET IMPACT STUDY. 

19 Not later than 180 days after the date of enactment 

20 of this Act, the Comptroller General of the United States 

21 shall— 

22 (1) conduct a study of the effects of forward ca23 pacity auctions or other capacity mechanisms that 

24 have been established by Independent System Opera25 tors or Regional Transmission Organizations on— 


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1 (A) consumer prices for electricity; 

2 (B) the installation of new electrical gen3 eration systems; 

4 (C) the preservation of existing electrical 

5 generation systems; and 

6 (D) competition in energy markets, includ7 ing the potential for the use of undue market 

8 power or manipulation in the auctions; and 

9 (2) submit to the appropriate committees of 

10 Congress a report describing the results of the study 

11 conducted under paragraph (1), including an assess12 ment of whether the auctions or capacity mecha13 nisms are producing rates that are just and reason14 able. 

15 Subtitle E—Severe Coal Supply 

16 Emergency Response 

17 SEC. 1041. SEVERE COAL SUPPLY EMERGENCY RESPONSE. 

18 (a) DEFINITIONS.—In this section: 

19 (1) BOARD.—The term ‘‘Board’’ means the 

20 Surface Transportation Board. 

21 (2) ELECTRIC RELIABILITY ORGANIZATION.— 

22 The term ‘‘Electric Reliability Organization’’ has the 

23 meaning given the term in section 215 of the Fed24 eral Power Act (16 U.S.C. 824o). 


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1 (3) FORM OE-417.—The term ‘‘Form OE-417’’ 

2 means the form entitled ‘‘Electric Emergency Inci3 dent and Disturbance Report’’ (or a successor form) 

4 and filed in accordance with the Federal Energy Ad5 ministration Act of 1974 (15 U.S.C. 761 et seq.). 

6 (4) SEVERE COAL SUPPLY EMERGENCY.—The 

7 term ‘‘severe coal supply emergency’’ means a coal 

8 supply deficiency reported to the Department on 

9 Form OE-417. 

10 (b) COORDINATION AND REPORT.— 

11 (1) REPORTING DUTY.—On the filing of a 

12 Form OE-417 that reports a severe coal supply 

13 emergency, the Secretary shall notify the Board and 

14 the Federal Energy Regulatory Commission. 

15 (2) CONSULTATION AND COORDINATION.—The 

16 Secretary, the Board, the Federal Energy Regu17 latory Commission, and, as appropriate, the Electric 

18 Reliability Organization, shall, to the maximum ex19 tent practicable, consult and coordinate with each 

20 other to alleviate and prevent recurrences of a severe 

21 coal supply emergency. 

22 (3) REPORT.—Not later than 1 year after the 

23 date of enactment of this Act, the Secretary, in con24 sultation with the Board, the Commission, and, as 

25 appropriate, the Electric Reliability Organization, 


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1 shall submit a report to Congress that analyzes and 

2 includes recommendations with respect to— 

3 (A) the effects of rail congestion on the 

4 flow of energy commodities such as coal; 

5 (B) the effects of rail congestion on the re6 liability of the bulk-power system (as that term 

7 is defined in section 215 of the Federal Power 

8 Act (16 U.S.C. 824o)); 

9 (C) the advisability of creating a minimum 

10 coal stockpile requirement; and 

11 (D) other appropriate measures that could 

12 prevent the development or recurrence of severe 

13 coal supply emergencies. 

14 Subtitle F—Energy Markets 

15 SEC. 1051. ENHANCED INFORMATION ON CRITICAL ENERGY 

16 SUPPLIES. 

17 (a) IN GENERAL.—Section 205 of the Department of 

18 Energy Organization Act (42 U.S.C. 7135) is amended 

19 by adding at the end the following: 

20 ‘‘(n) COLLECTION OF INFORMATION ON CRITICAL

21 ENERGY SUPPLIES.— 

22 ‘‘(1) IN GENERAL.—To ensure transparency of 

23 information relating to energy infrastructure and 

24 product ownership in the United States and improve 

25 the ability to evaluate the energy security of the 


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1 United States, the Administrator, in consultation 

2 with other Federal agencies (as necessary), shall— 

3 ‘‘(A) not later than 120 days after the date 

4 of enactment of this subsection, develop and 

5 provide notice of a plan to collect, in coopera6 tion with the Commodity Futures Trade Com7 mission, information identifying all oil inven8 tories, and other physical oil assets (including 

9 all petroleum-based products and the storage of 

10 such products in off-shore tankers), that are 

11 owned by the 50 largest traders of oil contracts 

12 (including derivative contracts), as determined 

13 by the Commodity Futures Trade Commission; 

14 and 

15 ‘‘(B) not later than 90 days after the date 

16 on which notice is provided under subparagraph 

17 (A), implement the plan described in that sub18 paragraph. 

19 ‘‘(2) INFORMATION.—The plan required under 

20 paragraph (1) shall include a description of the plan 

21 of the Administrator for collecting company-specific 

22 data, including— 

23 ‘‘(A) volumes of product under ownership; 

24 and 


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1 ‘‘(B) storage and transportation capacity 

2 (including owned and leased capacity). 

3 ‘‘(3) PROTECTION OF PROPRIETARY INFORMA4 TION.—Section 12(f) of the Federal Energy Admin5 istration Act of 1974 (15 U.S.C. 771(f)) shall apply 

6 to information collected under this subsection. 

7 ‘‘(o) COLLECTION OF INFORMATION ON STORAGE

8 CAPACITY FOR OIL AND NATURAL GAS.— 

9 ‘‘(1) IN GENERAL.—Not later than 90 days 

10 after the date of enactment of this subsection, the 

11 Administrator of the Energy Information Adminis12 tration shall collect information quantifying the com13 mercial storage capacity for oil and natural gas in 

14 the United States. 

15 ‘‘(2) UPDATES.—The Administrator shall up16 date annually the information required under para17 graph (1). 

18 ‘‘(3) PROTECTION OF PROPRIETARY INFORMA19 TION.—Section 12(f) of the Federal Energy Admin20 istration Act of 1974 (15 U.S.C. 771(f)) shall apply 

21 to information collected under this subsection. 

22 ‘‘(p) FINANCIAL MARKET ANALYSIS OFFICE.— 

23 ‘‘(1) ESTABLISHMENT.—There shall be within 

24 the Energy Information Administration a Financial 

25 Market Analysis Office, headed by a director, who 


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1 shall report directly to the Administrator of the En2 ergy Information Administration. 

3 ‘‘(2) DUTIES.—The Office shall— 

4 ‘‘(A) be responsible for analysis of the fi5 nancial aspects of energy markets; 

6 ‘‘(B) review the reports required by section 

7 1053(c) of the American Energy Innovation 

8 Act, in advance of the submission of the reports 

9 to Congress; and 

10 ‘‘(C) not later than 1 year after the date 

11 of enactment of this subsection— 

12 ‘‘(i) make recommendations to the 

13 Administrator of the Energy Information 

14 Administration that identify and quantify 

15 any additional resources that are required 

16 to improve the ability of the Energy Infor17 mation Administration to more fully inte18 grate financial market information into the 

19 analyses and forecasts of the Energy Infor20 mation Administration, including the role 

21 of energy futures contracts, energy com22 modity swaps, and derivatives in price for23 mation for oil; 

24 ‘‘(ii) conduct a review of implications 

25 of policy changes and changes in how 


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1 crude oil and refined petroleum products 

2 are transported with respect to price for3 mation of crude oil and refined petroleum 

4 products; and 

5 ‘‘(iii) notify the Committee on Energy 

6 and Natural Resources, and the Committee 

7 on Appropriations, of the Senate and the 

8 Committee on Energy and Commerce, and 

9 the Committee on Appropriations, of the 

10 House of Representatives of the rec11 ommendations described in clause (i). 

12 ‘‘(3) ANALYSES.—The Administrator of the En13 ergy Information Administration shall take analyses 

14 by the Office into account in conducting analyses 

15 and forecasting of energy prices.’’. 

16 (b) CONFORMING AMENDMENT.—Section 645 of the 

17 Department of Energy Organization Act (42 U.S.C. 7255) 

18 is amended by inserting ‘‘(15 U.S.C. 3301 et seq.) and 

19 the Natural Gas Act (15 U.S.C. 717 et seq.)’’ after ‘‘Nat20 ural Gas Policy Act of 1978’’. 

21 SEC. 1052. WORKING GROUP ON ENERGY MARKETS. 

22 (a) ESTABLISHMENT.—There is established a Work23 ing Group on Energy Markets (referred to in this subtitle 

24 as the ‘‘Working Group’’). 


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1 (b) COMPOSITION.—The Working Group shall be 

2 composed of— 

3 (1) the Secretary; 

4 (2) the Secretary of the Treasury; 

5 (3) the Chairman of the Federal Energy Regu6 latory Commission; 

7 (4) the Chairman of Federal Trade Commis8 sion; 

9 (5) the Chairman of the Securities and Ex10 change Commission; 

11 (6) the Chairman of the Commodity Futures 

12 Trading Commission; and 

13 (7) the Administrator of the Energy Informa14 tion Administration. 

15 (c) CHAIRPERSON.—The Secretary shall serve as the 

16 Chairperson of the Working Group. 

17 (d) COMPENSATION.—A member of the Working 

18 Group shall serve without additional compensation for the 

19 work of the member of the Working Group. 

20 (e) PURPOSE AND FUNCTION.—The Working Group 

21 shall— 

22 (1) investigate the effect of increased financial 

23 investment in energy commodities on energy prices 

24 and the energy security of the United States; 


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1 (2) recommend to the President and Congress 

2 laws (including regulations) that may be needed to 

3 prevent excessive speculation in energy commodity 

4 markets in order to prevent or minimize the adverse 

5 impact of excessive speculation on energy prices on 

6 consumers and the economy of the United States; 

7 and 

8 (3) review energy security implications of devel9 opments in international energy markets. 

10 (f) ADMINISTRATION.—The Secretary shall provide 

11 the Working Group with such administrative and support 

12 services as may be necessary for the performance of the 

13 functions of the Working Group. 

14 (g) COOPERATION OF OTHER AGENCIES.—The heads 

15 of Executive departments, agencies, and independent in16 strumentalities shall, to the extent permitted by law, pro17 vide the Working Group with such information as the 

18 Working Group requires to carry out this section. 

19 (h) CONSULTATION.—The Working Group shall con20 sult, as appropriate, with representatives of the various 

21 exchanges, clearinghouses, self-regulatory bodies, other 

22 major market participants, consumers, and the general 

23 public. 


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1 SEC. 1053. STUDY OF REGULATORY FRAMEWORK FOR EN2 ERGY MARKETS. 

3 (a) STUDY.—The Working Group shall conduct a 

4 study— 

5 (1) to identify the factors that affect the pricing 

6 of crude oil and refined petroleum products, includ7 ing an examination of the effects of market specula8 tion on prices; and 

9 (2) to review and assess— 

10 (A) existing statutory authorities relating 

11 to the oversight and regulation of markets crit12 ical to the energy security of the United States; 

13 and 

14 (B) the need for additional statutory au15 thority for the Federal Government to effec16 tively oversee and regulate markets critical to 

17 the energy security of the United States. 

18 (b) ELEMENTS OF STUDY.—The study shall in19 clude— 

20 (1) an examination of price formation of crude 

21 oil and refined petroleum products; 

22 (2) an examination of relevant international 

23 regulatory regimes; and 

24 (3) an examination of the degree to which 

25 changes in energy market transparency, liquidity, 

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1 nipulation, excessive speculation, or inefficient price 

2 formation. 

3 (c) REPORT AND RECOMMENDATIONS.—The Sec4 retary shall submit to the Committee on Energy and Nat5 ural Resources of the Senate and the Committee on En6 ergy and Commerce of the House of Representatives quar7 terly progress reports during the conduct of the study 

8 under this section, and a final report not later than 1 year 

9 after the date of enactment of this Act, that— 

10 (1) describes the results of the study; and 

11 (2) provides options and the recommendations 

12 of the Working Group for appropriate Federal co13 ordination of oversight and regulatory actions to en14 sure transparency of crude oil and refined petroleum 

15 product pricing and the elimination of excessive 

16 speculation, including recommendations on data col17 lection and analysis to be carried out by the Finan18 cial Market Analysis Office established by section 

19 205(p) of the Department of Energy Organization 

20 Act (42 U.S.C. 7135(p)). 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section. 


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1 Subtitle G—Transmission 

2 SEC. 1061. REPORT BY TRANSMISSION ORGANIZATIONS ON 

3 DISTRIBUTED ENERGY RESOURCES AND 

4 MICROGRID SYSTEMS. 

5 (a) DEFINITIONS.—In this section: 

6 (1) DISTRIBUTED ENERGY RESOURCE.—The 

7 term ‘‘distributed energy resource’’ means an elec8 tricity supply resource that, as permitted by State 

9 law— 

10 (A)(i) is interconnected to the electric sys11 tem operated by a transmission organization at 

12 or below 69kV; and 

13 (ii) is subject to dispatch by the trans14 mission organization; and 

15 (B)(i) generates electricity using any pri16 mary energy source, including solar energy and 

17 other renewable resources; or 

18 (ii) stores energy and is capable of sup19 plying electricity to the electric system operated 

20 by the transmission organization from the stor21 age reservoir. 

22 (2) ELECTRIC GENERATING CAPACITY RE23 SOURCE.—The term ‘‘electric generating capacity re24 source’’ means an electric generating resource, as 

25 measured by the maximum load-carrying ability of 


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1 the resource, exclusive of station use and planned, 

2 unplanned, or other outage or derating, that is sub3 ject to dispatch by a transmission organization to 

4 meet the resource adequacy needs of the systems op5 erated by the transmission organization. 

6 (3) MICROGRID SYSTEM.—The term ‘‘microgrid 

7 system’’ means an electrically distinct system under 

8 common control that— 

9 (A) serves an electric load at or below 

10 69kV from a distributed energy resource or 

11 electric generating capacity resource; and 

12 (B) is subject to dispatch by a trans13 mission organization. 

14 (4) TRANSMISSION ORGANIZATION.—The term 

15 ‘‘transmission organization’’ has the meaning given 

16 the term in section 3 of the Federal Power Act (16 

17 U.S.C. 796). 

18 (b) REPORT.— 

19 (1) NOTICE.—Not later than 14 days after the 

20 date of enactment of this section, the Commission 

21 shall submit to each transmission organization no22 tice that the transmission organization is required to 

23 file with the Commission a report in accordance with 

24 paragraph (2). 


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1 (2) REPORT.—Not later than 180 days after 

2 the date on which a transmission organization re3 ceives a notice under paragraph (1), the trans4 mission organization shall submit to the Commission 

5 a report that— 

6 (A)(i) identifies distributed energy re7 sources and micro-grid systems that are subject 

8 to dispatch by the transmission organization as 

9 of the date of the report; and 

10 (ii) describes the fuel sources and oper11 ational characteristics of such distributed en12 ergy resources and micro-grid systems, includ13 ing, to the maximum extent practicable, a dis14 cussion of the benefits and costs associated with 

15 the distributed energy resources and microgrid 

16 systems identified under clause (i); 

17 (B) evaluates, with due regard for oper18 ational and economic benefits and costs, the po19 tential for distributed energy resources and 

20 microgrid systems to be deployed to the trans21 mission organization over the short- and long22 term periods in the planning cycle of the trans23 mission organization; and 

24 (C) identifies— 


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1 (i) over the short- and long-term peri2 ods in the planning cycle of the trans3 mission organization, barriers to the de4 ployment to the transmission organization 

5 of distributed energy resources and 

6 microgrid systems; and 

7 (ii) potential changes to the oper8 ational requirements for, or charges associ9 ated with, the interconnection of distrib10 uted energy resources and microgrid sys11 tems to the transmission organization that 

12 would reduce the barriers identified under 

13 clause (i). 

14 SEC. 1062. NET METERING STUDY GUIDANCE. 

15 Title XVIII of Energy Policy Act of 2005 (Public 

16 Law 109–58; 119 Stat. 1122) is amended by adding at 

17 the end the following: 

18 ‘‘SEC. 1841. NET ENERGY METERING STUDY. 

19 ‘‘(a) IN GENERAL.—Not later than 180 days after 

20 the date of enactment of this section, the Secretary shall— 

21 ‘‘(1) issue guidance on criteria required to be 

22 included in studies of net metering conducted by the 

23 Department; and 

24 ‘‘(2) undertake a study of net energy metering. 


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1 ‘‘(b) REQUIREMENTS AND CONTENTS.—The model 

2 guidance issued under subsection (a) shall clarify without 

3 prejudice to other study criteria that any study of net en4 ergy metering, including the study conducted by the De5 partment under subsection (a) shall— 

6 ‘‘(1) be publicly available; and 

7 ‘‘(2) assess benefits and costs of net energy me8 tering, including— 

9 ‘‘(A) load data, including hourly profiles; 

10 ‘‘(B) distributed generation production 

11 data; 

12 ‘‘(C) best available technology, including 

13 inverter capability; and 

14 ‘‘(D) benefits and costs of distributed en15 ergy deployment, including— 

16 ‘‘(i) environmental benefits; 

17 ‘‘(ii) changes in electric system reli18 ability; 

19 ‘‘(iii) changes in peak power require20 ments; 

21 ‘‘(iv) provision of ancillary services, 

22 including reactive power; 

23 ‘‘(v) changes in power quality; 

24 ‘‘(vi) changes in land-use effects; 


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1 ‘‘(vii) changes in right-of-way acquisi2 tion costs; 

3 ‘‘(viii) changes in vulnerability to ter4 rorism; and 

5 ‘‘(ix) changes in infrastructure resil6 ience.’’. 

7 TITLE II—MODERNIZING 

8 INFRASTRUCTURE 

9 Subtitle A—QER Recommendations 

10 SEC. 2001. NATURAL GAS DISTRIBUTION SYSTEM IMPROVE11 MENT PROGRAM. 

12 Part 4 of title II of the National Energy Conservation 

13 Policy Act (42 U.S.C. 8231 et seq.) is amended by adding 

14 at the end the following: 

15 ‘‘SEC. 256. ESTABLISHMENT OF A NATURAL GAS DISTRIBU16 TION SYSTEM IMPROVEMENT PROGRAM. 

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

18 ‘‘(1) LEAK-PRONE DISTRIBUTION PIPELINE.— 

19 The term ‘leak-prone distribution pipeline’ means a 

20 natural gas distribution system pipeline constructed 

21 of leak prone materials, such as cast iron or bare 

22 steel. 

23 ‘‘(2) LOW-INCOME HOUSEHOLD.—The term 

24 ‘low-income household’ means a household— 


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1 ‘‘(A) the combined income of which is 

2 equal to or less than 200 percent of the poverty 

3 level; or 

4 ‘‘(B) determined to be eligible by the State 

5 in which the household is located under the low6 income home energy assistance program estab7 lished under the Low-Income Home Energy As8 sistance Act of 1981 (42 U.S.C. 8621 et seq.) 

9 using an eligibility standard based on— 

10 ‘‘(i) 150 percent of the poverty level; 

11 or 

12 ‘‘(ii) 60 percent of the median income 

13 in the State. 

14 ‘‘(b) ESTABLISHMENT.—The Secretary shall make 

15 grants to eligible entities on a competitive basis to accel16 erate or expand utility programs that improve the safety 

17 and environmental performance of natural gas distribution 

18 systems. 

19 ‘‘(c) ELIGIBILITY.— 

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), to be eligible to receive a grant under 

22 subsection (b), an entity shall be— 

23 ‘‘(A) a State; 

24 ‘‘(B) the District of Columbia; 

25 ‘‘(C) the Commonwealth of Puerto Rico; 


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1 ‘‘(D) any other territory or possession of 

2 the United States; or 

3 ‘‘(E) a tribal organization (as defined in 

4 section 4 of the Indian Self-Determination and 

5 Education Assistance Act (25 U.S.C. 450b)). 

6 ‘‘(2) OTHER ENTITIES.—If an entity described 

7 in subparagraphs (A) through (D) of paragraph (1) 

8 does not apply for a grant under subsection (b), 

9 units of general purpose local government, commu10 nity action agencies, and other nonprofit agencies lo11 cated in that entity shall be eligible to apply for a 

12 grant. 

13 ‘‘(d) USE OF FUNDS.—An eligible entity receiving a 

14 grant under subsection (b)— 

15 ‘‘(1) shall only use grant amounts for new or 

16 expanded programs that are approved by a public 

17 utility commission (or an equivalent entity) after 

18 April 21, 2015; and 

19 ‘‘(2) may use grant amounts— 

20 ‘‘(A) to accelerate the rate of replacement 

21 and repair of leak-prone distribution pipelines; 

22 and 

23 ‘‘(B) for directed inspection and mainte24 nance programs. 


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1 ‘‘(e) LOW-INCOME ASSISTANCE.—As a condition of 

2 receiving a grant under subsection (b), an eligible entity 

3 shall ensure that the grant amounts are used to offset the 

4 cost to low-income households of incremental increases in 

5 household bills associated with system upgrades using 

6 grant amounts. 

7 ‘‘(f) APPLICATION PROCESS.—An eligible entity de8 siring a grant under subsection (b) shall submit to the 

9 Secretary an application at such time, in such manner, 

10 and containing such information as the Secretary may re11 quire. 

12 ‘‘(g) SELECTION.—In selecting grant recipients, the 

13 Secretary shall— 

14 ‘‘(1) prioritize eligible entities that emphasize 

15 safety over other program benefits; and 

16 ‘‘(2) with respect to the application proposal of 

17 an eligible entity, consider and estimate the net ben18 efits of the proposed— 

19 ‘‘(A) magnitude of methane emission re20 ductions; 

21 ‘‘(B) use of innovative technology and pol22 icy approaches; 

23 ‘‘(C) number of low-income households es24 timated to benefit from the proposed program; 

25 and 


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1 ‘‘(D) demonstrated coordination with a 

2 broad range of stakeholders, including the pub3 lic utility commission (or equivalent entity), 

4 consumer advocates, and utilities. 

5 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

6 is authorized to be appropriated to carry out this section 

7 $3,500,000,000 for the period of fiscal years 2016 

8 through 2019.’’. 

9 SEC. 2002. STRATEGY FOR MANAGING THE RISKS ASSOCI10 ATED WITH THE LOSS OR DISRUPTION OF 

11 POWER FROM LARGE POWER TRANS12 FORMERS. 

13 Part II of the Federal Power Act (16 U.S.C. 824 et 

14 seq.) is amended by adding at the end the following: 

15 ‘‘SEC. 224. STRATEGY FOR MANAGING THE RISKS ASSOCI16 ATED WITH THE LOSS OR DISRUPTION OF 

17 POWER FROM LARGE POWER TRANS18 FORMERS. 

19 ‘‘(a) ESTABLISHMENT.—The Secretary of Energy 

20 (referred to in this section as the ‘Secretary’), in coordina21 tion with the Secretary of Homeland Security and the 

22 heads of other Federal agencies, States, and representa23 tives of the electric industry, shall develop a strategy for 

24 identifying and managing the risks associated with the 

25 loss of power from large power transformers. 


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1 ‘‘(b) RESERVE.—In developing the strategy under 

2 subsection (a), the Secretary shall evaluate the establish3 ment of 1 or more transformer reserves as an approach 

4 to mitigating the risks described in subsection (a). 

5 ‘‘(c) REPORT.—Not later than 1 year after the date 

6 of enactment of this section, the Secretary shall submit 

7 to the appropriate committees of Congress a report that— 

8 ‘‘(1) describes the findings, conclusions, and 

9 recommendations of the Secretary with respect to 

10 the strategy required to be developed under sub11 section (a); and 

12 ‘‘(2) includes an implementation plan for that 

13 strategy. 

14 ‘‘(d) STRATEGIC TRANSFORMER RESERVE.—On sub15 mission of the report under subsection (c), the Secretary 

16 may establish a Strategic Transformer Reserve.’’. 

17 SEC. 2003. CONSOLIDATION OF RELEASE AUTHORITIES. 

18 (a) NORTHEAST HOME HEATING OIL RESERVE.— 

19 The Energy Policy and Conservation Act is amended by 

20 striking section 183 (42 U.S.C. 6250b) and inserting the 

21 following: 

22 ‘‘SEC. 183. CONDITIONS FOR RELEASE. 

23 ‘‘The Secretary may sell products from the Reserve 

24 only after the President makes a finding of a severe energy 

25 supply interruption in accordance with section 161(d), exVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 cept that references to ‘petroleum products’ and the ‘Stra2 tegic Petroleum Reserve’ in that section shall be deemed 

3 to be references to ‘petroleum distillate’ and the ‘North4 east Home Heating Oil Reserve’, respectively.’’. 

5 (b) NORTHEAST GASOLINE SUPPLY RESERVE.—The 

6 Secretary may sell products from the Northeast Gasoline 

7 Supply Reserve only after making a finding of a severe 

8 energy supply interruption in accordance with section 

9 161(d) of the Energy Policy and Conservation Act (42 

10 U.S.C. 6241(d)), except that references to ‘‘petroleum 

11 products’’ and the ‘‘Strategic Petroleum Reserve’’ in that 

12 section shall be deemed to be references to ‘‘gasoline’’ and 

13 the ‘‘Northeast Gasoline Supply Reserve’’, respectively. 

14 SEC. 2004. MODERNIZATION OF STRATEGIC PETROLEUM 

15 RESERVE RELEASE AUTHORITIES. 

16 Section 161(d)(2) of the Energy Policy and Con17 servation Act (42 U.S.C. 6241(d)(2)) is amended— 

18 (1) in subparagraph (A), by striking ‘‘(A) an 

19 emergency’’ and inserting the following: 

20 ‘‘(A)(i) an emergency’’; 

21 (2) by redesignating subparagraphs (B) and 

22 (C) as clauses (ii) and (iii), respectively; 

23 (3) in clause (ii) (as so redesignated), by strik24 ing ‘‘has resulted’’ and inserting ‘‘will likely result’’; 


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1 (4) in clause (iii) (as so redesignated), by strik2 ing the period at the end and inserting ‘‘; or’’; and 

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

4 ‘‘(B) an interruption in the global oil sup5 ply exists that is likely to cause a severe in6 crease in the price of domestic petroleum prod7 ucts, regardless of whether the interruption re8 sults in a loss of oil imports to the United 

9 States.’’. 

10 SEC. 2005. OPTIMIZATION OF EMERGENCY RESPONSE CA11 PABILITY OF STRATEGIC PETROLEUM RE12 SERVE. 

13 (a) IN GENERAL.—Part B of title I of the Energy 

14 Policy and Conservation Act (42 U.S.C. 6231 et seq.) is 

15 amended by adding at the end the following: 

16 ‘‘SEC. 170. OPTIMIZATION OF EMERGENCY RESPONSE CA17 PABILITY OF STRATEGIC PETROLEUM RE18 SERVE. 

19 ‘‘(a) ANALYSIS.—The Secretary shall carry out an 

20 analysis, including detailed engineering studies, of the ap21 propriate size and configuration of the Strategic Petro22 leum Reserve. 

23 ‘‘(b) FUNDING FOR SPR INFRASTRUCTURE AND DIS24 TRIBUTION SYSTEMS.—After performing the analysis 

25 under subsection (a) and subject to the availability of 


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1 funds, the Secretary may provide funds for Strategic Pe2 troleum Reserve infrastructure and distribution systems 

3 in order to optimize the ability of the Strategic Petroleum 

4 Reserve to protect the economy of the United States in 

5 an emergency supply situation. 

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

7 is authorized to be appropriated to carry out this section 

8 $2,000,000,000 for the period of fiscal years 2016 

9 through 2019.’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents for the Energy Policy and Conservation Act is 

12 amended by inserting after the item relating to section 

13 169 the following: 

‘‘Sec. 170. Optimization of emergency response capability of Strategic Petroleum Reserve.’’. 

14 Subtitle B—Grid Modernization 

15 and Storage 

16 SEC. 2011. DEFINITION OF SECRETARY. 

17 In this subtitle (other than section 2012), the term 

18 ‘‘Secretary’’ means the Secretary, acting through the As19 sistant Secretary of the Office of Electricity Delivery and 

20 Energy Reliability. 

21 SEC. 2012. GRID STORAGE PROGRAM. 

22 (a) IN GENERAL.—The Secretary shall conduct a 

23 program of research, development, and demonstration of 

24 electric grid energy storage that addresses the principal 


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1 challenges identified in the 2013 Department of Energy 

2 Strategic Plan for Grid Energy Storage. 

3 (b) AREAS OF FOCUS.—The program under this sec4 tion shall focus on— 

5 (1) materials and electrochemical systems re6 search; 

7 (2) power conversion technologies research; 

8 (3) developing— 

9 (A) empirical and science-based industry 

10 standards to compare the storage capacity, 

11 cycle length and capabilities, and reliability of 

12 different types of electricity storage; and 

13 (B) validation and testing techniques; 

14 (4) other fundamental and applied research 

15 critical to widespread deployment of electricity stor16 age; 

17 (5) device development that builds on results 

18 from research described in paragraphs (1), (2), and 

19 (4), including combinations of power electronics, ad20 vanced optimizing controls, and energy storage as a 

21 general purpose element of the electric grid; 

22 (6) grid-scale testing and analysis of storage 

23 devices, including test-beds and field trials; 


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1 (7) cost-benefit analyses that inform capital ex2 penditure planning for regulators and owners and 

3 operators of components of the electric grid; 

4 (8) electricity storage device safety and reli5 ability, including potential failure modes, mitigation 

6 measures, and operational guidelines; 

7 (9) standards for storage device performance, 

8 control interface, grid interconnection, and inter9 operability; and 

10 (10) maintaining a public database of energy 

11 storage projects, policies, codes, standards, and reg12 ulations. 

13 (c) ASSISTANCE TO STATES.—The Secretary may 

14 provide technical and financial assistance to States, Indian 

15 tribes, or units of local government to participate in or 

16 use research, development, or deployment of technology 

17 developed under this section. 

18 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to the Secretary to carry 

20 out this section $50,000,000 for each of fiscal years 2017 

21 through 2026. 

22 SEC. 2013. TECHNOLOGY DEMONSTRATION AND THE DIS23 TRIBUTION SYSTEM. 

24 (a) IN GENERAL.—The Secretary shall establish a 

25 grant program to carry out eligible projects relating to the 


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1 modernization of the electric grid, including the applica2 tion of technologies to improve observability, advanced 

3 controls, and prediction of system performance on the dis4 tribution system. 

5 (b) ELIGIBLE PROJECTS.—To be eligible for a grant 

6 under subsection (a), a project shall— 

7 (1) be designed to improve the performance and 

8 efficiency of the future electric grid, while ensuring 

9 the continued provision of safe, secure, reliable, and 

10 affordable power; and 

11 (2) demonstrate— 

12 (A) secure integration and management of 

13 2 or more energy resources, including distrib14 uted energy generation, combined heat and 

15 power, microgrids, energy storage, electric vehi16 cles, energy efficiency, demand response, and 

17 intelligent loads; and 

18 (B) secure integration and interoperability 

19 of communications and information tech20 nologies. 

21 (c) PARTICIPATION.—Projects conducted under sub22 section (a) shall include the participation of a partnership 

23 consisting of 2 or more entities that— 

24 (1) may include— 

25 (A) any institution of higher education; 


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1 (B) a National Laboratory; 

2 (C) a representative of a State or local 

3 government; 

4 (D) a representative of an Indian tribe; or 

5 (E) a Federal power marketing adminis6 tration; and 

7 (2) shall include not fewer than 1 of any of— 

8 (A) an investor-owned electric utility; 

9 (B) a publicly owned utility; 

10 (C) a technology provider; 

11 (D) a rural electric cooperative; 

12 (E) a regional transmission organization; 

13 or 

14 (F) an independent system operator. 

15 (d) SELECT AREAS OF FOCUS.— 

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

17 that not fewer than 1 project conducted under sub18 section (a) is— 

19 (A) a transactive energy project that im20 plements a system of economic or control mech21 anisms that optimizes the dynamic balance of 

22 supply and demand across the electrical infra23 structure, using economic value as a key oper24 ational parameter; and 


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1 (B) a valuation innovation project that 

2 evaluates or implements markets, rates, and 

3 other ways of appropriately valuing the grid 

4 services provided by demand response, energy 

5 efficiency, electric vehicles, storage, distributed 

6 generation, and other generation technologies to 

7 ensure— 

8 (i) appropriate cost-recovery; 

9 (ii) reliability of the distribution grid; 

10 and 

11 (iii) increased penetration of demand 

12 response, energy efficiency, electric vehi13 cles, storage, distributed generation, and 

14 other generation technologies. 

15 (e) CYBERSECURITY PLAN.—Each project conducted 

16 under subsection (a) shall include the development of a 

17 cybersecurity plan approved by the Secretary. 

18 (f) PRIVACY BEST PRACTICES.—In carrying out this 

19 section, the Secretary shall identify best practices for the 

20 implementation of the 5 core concepts of the Department 

21 relating to the collection, use, disclosure, and retention of 

22 information, as described in the Voluntary Code of Con23 duct of the Department. 

24 (g) WORKING GROUPS.— 


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

2 1 or more working groups, to be composed of rep3 resentatives of projects conducted under subsection 

4 (a), that shall— 

5 (A) meet periodically to discuss implemen6 tation of the projects, including challenges and 

7 potential solutions held in common by the 

8 projects; and 

9 (B) submit to the Secretary such informa10 tion resulting from the meetings as the Sec11 retary may require. 

12 (2) REPORTS.—The Secretary shall periodically 

13 publish reports and other appropriate materials 

14 based on the information provided by the working 

15 groups under paragraph (1)(B). 

16 SEC. 2014. MICROGRID SYSTEMS FOR ISOLATED AND RESIL17 IENT COMMUNITIES. 

18 (a) DEFINITIONS.—In this section: 

19 (1) HYBRID MICROGRID SYSTEM.—The term 

20 ‘‘hybrid microgrid system’’ means a stand-alone elec21 trical system that— 

22 (A) is comprised of conventional generation 

23 and at least 1 alternative energy resource; and 

24 (B) may use grid-scale energy storage. 


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1 (2) ISOLATED COMMUNITY.—The term ‘‘iso2 lated community’’ means a community that is pow3 ered by a stand-alone electric generation and dis4 tribution system without the economic and reliability 

5 benefits of connection to a regional electric grid. 

6 (3) MICROGRID SYSTEM.—The term ‘‘microgrid 

7 system’’ means a standalone electrical system that 

8 uses grid-scale energy storage. 

9 (4) STRATEGY.—The term ‘‘strategy’’ means 

10 the strategy developed under subsection (b)(2)(B). 

11 (b) PROGRAM.— 

12 (1) ESTABLISHMENT.—The Secretary shall es13 tablish a program to promote the development of— 

14 (A) hybrid microgrid systems for isolated 

15 communities; and 

16 (B) microgrid systems to increase the resil17 ience of critical infrastructure. 

18 (2) PHASES.—The program established under 

19 paragraph (1) shall be carried out in phases, includ20 ing— 

21 (A) phase I, which shall consist of the de22 velopment of a feasibility assessment for— 

23 (i) hybrid microgrid systems in iso24 lated communities; and 


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1 (ii) microgrid systems to enhance the 

2 resilience of critical infrastructure; 

3 (B) phase II, which shall consist of the de4 velopment of an implementation strategy in ac5 cordance with paragraph (3) to promote the de6 velopment of hybrid microgrid systems for iso7 lated communities, particularly for those com8 munities exposed to extreme weather conditions 

9 and high energy costs, including electricity, 

10 space heating and cooling, and transportation; 

11 (C) phase III, which shall— 

12 (i) be carried out simultaneously with 

13 phase II; and 

14 (ii) consist of the development of an 

15 implementation strategy to promote the de16 velopment of microgrid systems that in17 crease the resilience of critical infrastruc18 ture; 

19 (D) phase IV, which shall consist of cost20 shared demonstration projects that— 

21 (i) are based on the strategies devel22 oped under subparagraph (B); and 

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1 priate measures to protect and secure the 

2 electric grid; and 

3 (E) phase V, which shall establish a bene4 fits analysis plan to help inform regulators, pol5 icymakers, and industry stakeholders about the 

6 affordability, environmental, and resilience ben7 efits associated with phases II, III, and IV. 

8 (3) REQUIREMENTS FOR STRATEGY.—In devel9 oping the strategy under paragraph (2)(B), the Sec10 retary shall consider— 

11 (A) establishing future targets for the eco12 nomic displacement of conventional generation 

13 using hybrid microgrid systems, including dis14 placement of conventional generation used for 

15 electric power generation, heating and cooling, 

16 and transportation; 

17 (B) the potential for renewable resources, 

18 including wind, solar, and hydropower, to be in19 tegrated into a hybrid microgrid system; 

20 (C) opportunities for improving the effi21 ciency of existing hybrid microgrid systems; 

22 (D) the capacity of the local workforce to 

23 operate, maintain, and repair a hybrid 

24 microgrid system; 


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1 (E) opportunities to develop the capacity of 

2 the local workforce to operate, maintain, and 

3 repair a hybrid microgrid system; 

4 (F) leveraging existing capacity within 

5 local or regional research organizations, such as 

6 organizations based at institutions of higher 

7 education, to support development of hybrid 

8 microgrid systems, including by testing novel 

9 components and systems prior to field deploy10 ment; 

11 (G) the need for basic infrastructure to de12 velop, deploy, and sustain a hybrid microgrid 

13 system; 

14 (H) input of traditional knowledge from 

15 local leaders of isolated communities in the de16 velopment of a hybrid microgrid system; 

17 (I) the impact of hybrid microgrid systems 

18 on defense, homeland security, economic devel19 opment, and environmental interests; 

20 (J) opportunities to leverage existing inter21 agency coordination efforts and recommenda22 tions for new interagency coordination efforts to 

23 minimize unnecessary overhead, mobilization, 

24 and other project costs; and 


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1 (K) any other criteria the Secretary deter2 mines appropriate. 

3 (c) COLLABORATION.—The program established 

4 under subsection (b)(1) shall be carried out in collabora5 tion with relevant stakeholders, including, as appro6 priate— 

7 (1) States; 

8 (2) Indian tribes; 

9 (3) regional entities and regulators; 

10 (4) units of local government; 

11 (5) institutions of higher education; and 

12 (6) private sector entities. 

13 (d) REPORT.—Not later than 180 days after the date 

14 of enactment of this Act, and annually thereafter, the Sec15 retary shall submit to the Committee on Energy and Nat16 ural Resources of the Senate and the Committee on En17 ergy and Commerce of the House of Representatives a re18 port on— 

19 (1) the efforts to implement the program estab20 lished under subsection (b)(1); and 

21 (2) the status of the strategy developed under 

22 subsection (b)(2)(B). 


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1 SEC. 2015. ELECTRIC SYSTEM GRID ARCHITECTURE, SCE2 NARIO DEVELOPMENT, AND MODELING. 

3 (a) GRID ARCHITECTURE AND SCENARIO DEVELOP4 MENT.— 

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

6 the Secretary shall establish and facilitate a collabo7 rative process to develop model grid architecture and 

8 a set of future scenarios for the electric system to 

9 examine the impacts of different combinations of re10 sources (including different quantities of distributed 

11 energy resources and large-scale, central generation) 

12 on the electric grid. 

13 (2) MARKET STRUCTURE.—The grid architec14 ture and scenarios developed under paragraph (1) 

15 shall account for differences in market structure, in16 cluding an examination of the potential for stranded 

17 costs in each type of market structure. 

18 (3) FINDINGS.—Based on the findings of grid 

19 architecture developed under paragraph (1), the Sec20 retary shall— 

21 (A) determine whether any additional 

22 standards are necessary to ensure the interoper23 ability of grid systems and associated commu24 nications networks; and 

25 (B) if the Secretary makes a determination 

26 that additional standards are necessary under 


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1 subparagraph (A), make recommendations for 

2 additional standards. 

3 (b) MODELING.—Subject to subsection (c), the Sec4 retary shall— 

5 (1) conduct modeling based on the scenarios de6 veloped under subsection (a); and 

7 (2) analyze and evaluate the technical and fi8 nancial impacts of the models to assist States, utili9 ties, and other stakeholders in— 

10 (A) enhancing strategic planning efforts; 

11 (B) avoiding stranded costs; and 

12 (C) maximizing the cost-effectiveness of fu13 ture grid-related investments. 

14 (c) INPUT.—The Secretary shall develop the sce15 narios and conduct the modeling and analysis under sub16 sections (a) and (b) with participation or input, as appro17 priate, from— 

18 (1) the National Laboratories; 

19 (2) States; 

20 (3) State regulatory authorities; 

21 (4) transmission organizations; 

22 (5) representatives of the electric industry; 

23 (6) academic institutions; 

24 (7) independent research institutes; and 

25 (8) other entities. 


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1 SEC. 2016. VOLUNTARY MODEL PATHWAYS. 

2 (a) ESTABLISHMENT OF VOLUNTARY MODEL PATH3 WAYS.— 

4 (1) ESTABLISHMENT.—Not later than 90 days 

5 after the date of enactment of this Act, the Sec6 retary shall initiate the development of voluntary 

7 model pathways for modernizing the electric grid 

8 through a collaborative, public-private effort that— 

9 (A) produces illustrative policy pathways 

10 that can be adapted for State and regional ap11 plications by regulators and policymakers; 

12 (B) facilitates the modernization of the 

13 electric grid to achieve the objectives described 

14 in paragraph (2); 

15 (C) ensures a reliable, resilient, affordable, 

16 safe, and secure electric system; and 

17 (D) acknowledges and provides for dif18 ferent priorities, electric systems, and rate 

19 structures across States and regions. 

20 (2) OBJECTIVES.—The pathways established 

21 under paragraph (1) shall facilitate achievement of 

22 the following objectives: 

23 (A) Near real-time situational awareness of 

24 the electric system. 

25 (B) Data visualization. 


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1 (C) Advanced monitoring and control of 

2 the advanced electric grid. 

3 (D) Enhanced certainty for private invest4 ment in the electric system. 

5 (E) Increased innovation. 

6 (F) Greater consumer empowerment. 

7 (G) Enhanced grid resilience, reliability, 

8 and robustness. 

9 (H) Improved— 

10 (i) integration of distributed energy 

11 resources; 

12 (ii) interoperability of the electric sys13 tem; and 

14 (iii) predictive modeling and capacity 

15 forecasting. 

16 (3) STEERING COMMITTEE.—Not later than 90 

17 days after the date of enactment of this Act, the 

18 Secretary shall establish a steering committee to fa19 cilitate the development of the pathways under para20 graph (1), to be composed of members appointed by 

21 the Secretary, consisting of persons with appropriate 

22 expertise representing a diverse range of interests in 

23 the public, private, and academic sectors, including 

24 representatives of— 

25 (A) the Smart Grid Task Force; and 


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1 (B) the Smart Grid Advisory Committee. 

2 (b) TECHNICAL ASSISTANCE.—The Secretary may 

3 provide technical assistance to States, Indian tribes, or 

4 units of local government to adopt 1 or more elements of 

5 the pathways developed under subsection (a)(1). 

6 SEC. 2017. PERFORMANCE METRICS FOR ELECTRICITY IN7 FRASTRUCTURE PROVIDERS. 

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

9 date of enactment of this Act, the Secretary shall submit 

10 to the appropriate committees of Congress a report that 

11 includes— 

12 (1) an evaluation of the performance of the 

13 electric grid as of the date of the report; and 

14 (2) a description of the quantified costs and 

15 benefits associated with the changes evaluated under 

16 the scenarios developed under section 2015. 

17 (b) CONSIDERATIONS FOR DEVELOPMENT OF

18 METRICS.—In developing metrics for evaluating and 

19 quantifying the electric grid under subsection (a), the Sec20 retary shall consider— 

21 (1) standard methodologies for calculating im22 provements or deteriorations in the performance 

23 metrics, such as reliability, grid efficiency, power 

24 quality, consumer satisfaction, sustainability, and fi25 nancial incentives; 


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1 (2) standard methodologies for calculating value 

2 to ratepayers, including broad economic and related 

3 impacts from improvements to the performance 

4 metrics; 

5 (3) appropriate ownership and operating roles 

6 for electric utilities that would enable improved per7 formance through the adoption of emerging, com8 mercially available or advanced grid technologies or 

9 solutions, including— 

10 (A) multicustomer microgrids; 

11 (B) distributed energy resources; 

12 (C) energy storage; 

13 (D) electric vehicles; 

14 (E) electric vehicle charging infrastructure; 

15 (F) integrated information and commu16 nications systems; 

17 (G) transactive energy systems; and 

18 (H) advanced demand management sys19 tems; and 

20 (4) with respect to States, the role of the grid 

21 operator in enabling a robust future electric system 

22 to ensure that— 

23 (A) electric utilities remain financially via24 ble; 


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1 (B) electric utilities make the needed in2 vestments that ensure a reliable, secure, and re3 silient grid; and 

4 (C) costs incurred to transform to an inte5 grated grid are allocated and recovered respon6 sibly, efficiently, and equitably. 

7 SEC. 2018. STATE AND REGIONAL DISTRIBUTION PLAN8 NING. 

9 (a) IN GENERAL.—On the request of a State or re10 gional organization, the Secretary shall partner with 

11 States and regional organizations to facilitate the develop12 ment of State and regional electricity distribution plans 

13 by— 

14 (1) conducting a resource assessment and anal15 ysis of future demand and distribution requirements; 

16 and 

17 (2) developing open source tools for State and 

18 regional planning and operations. 

19 (b) RISK AND SECURITY ANALYSIS.—The assessment 

20 under subsection (a)(1) shall include— 

21 (1) the evaluation of the physical and cyberse22 curity needs of an advanced distribution manage23 ment system and the integration of distributed en24 ergy resources; and 


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1 (2) advanced use of grid architecture to analyze 

2 risks in an all-hazards approach that includes com3 munications infrastructure, control systems architec4 ture, and power systems architecture. 

5 (c) TECHNICAL ASSISTANCE.—For the purpose of de6 veloping State and regional electricity distribution plans, 

7 the Secretary shall provide technical assistance to— 

8 (1) States; 

9 (2) regional reliability entities; and 

10 (3) other distribution asset owners and opera11 tors. 

12 SEC. 2019. AUTHORIZATION OF APPROPRIATIONS. 

13 There is authorized to be appropriated to the Sec14 retary to carry out sections 2013 through 2018 

15 $200,000,000 for each of fiscal years 2017 through 2026. 

16 SEC. 2020. STATE CONSIDERATION OF RESILIENCE. 

17 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

18 the Public Utility Regulatory Policies Act of 1978 (16 

19 U.S.C. 2621(d)) is amended by adding at the end the fol20 lowing: 

21 ‘‘(20) RESILIENCE.— 

22 ‘‘(A) DEFINITION OF ELECTRIC GRID RE23 SILIENCE.—The term ‘electric grid resilience’ 

24 means the ability of the electric grid to adapt 


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1 to changing conditions and withstand and rap2 idly recover from disruptions. 

3 ‘‘(B) REQUIRED CONSIDERATION.—Each 

4 electric utility shall incorporate into the regular 

5 planning process of the electric utility consider6 ation of investments in electric grid resilience. 

7 ‘‘(C) FACTORS.—Consideration under sub8 paragraph (B) shall include an evaluation of po9 tential benefits of enhancing electric grid resil10 ience, including— 

11 ‘‘(i) system stability under severe and 

12 nontraditional hazards; 

13 ‘‘(ii) adaptation to region-specific nat14 ural threats and vulnerabilities; 

15 ‘‘(iii) adaptation to climate change-re16 lated extreme weather disruptions; 

17 ‘‘(iv) support provided to inter18 dependent critical infrastructures reliant 

19 on energy services to operate; 

20 ‘‘(v) reduced costs under normal oper21 ating conditions; 

22 ‘‘(vi) enhanced distributed generation 

23 and microgrid functionality to operate as 

24 an integrated energy system in intentional 

25 islanding mode; 


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1 ‘‘(vii) localized energy generation that 

2 avoids incurrence of transmission and dis3 tribution losses; 

4 ‘‘(viii) system operational flexibility; 

5 and 

6 ‘‘(ix) ancillary environmental benefits, 

7 including greenhouse gas reductions.’’. 

8 (b) COMPLIANCE.— 

9 (1) TIME LIMITATIONS.—Section 112(b) of the 

10 Public Utility Regulatory Policies Act of 1978 (16 

11 U.S.C. 2622(b)) is amended by adding at the end 

12 the following: 

13 ‘‘(7)(A) Not later than 1 year after the date of 

14 enactment of this paragraph, each State regulatory 

15 authority (with respect to each electric utility for 

16 which it has ratemaking authority), and each non17 regulated electric utility, shall— 

18 ‘‘(i) commence the consideration referred 

19 to in section 111; or 

20 ‘‘(ii) set a hearing date for such consider21 ation, with respect to the standard established 

22 by paragraph (20) of section 111(d). 

23 ‘‘(B) Not later than 2 years after the date of 

24 enactment of this paragraph, each State regulatory 

25 authority (with respect to each electric utility for 


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1 which it has ratemaking authority), and each non2 regulated electric utility, shall— 

3 ‘‘(i) complete the consideration required 

4 under subparagraph (A); and 

5 ‘‘(ii) make the determination referred to in 

6 section 111 with respect to the standard estab7 lished by paragraph (20) of section 111(d).’’. 

8 (2) FAILURE TO COMPLY.—Section 112(c) of 

9 the Public Utility Regulatory Policies Act of 1978 

10 (16 U.S.C. 2622(c)) is amended by adding at the 

11 end the following: ‘‘In the case of the standard es12 tablished by paragraph (20) of section 111(d), the 

13 reference contained in this subsection to the date of 

14 enactment of this Act shall be deemed to be a ref15 erence to the date of enactment of that paragraph.’’. 

16 Subtitle C—Advanced 

17 Manufacturing 

18 SEC. 2021. ADVANCED MANUFACTURING OFFICE. 

19 (a) ESTABLISHMENT.—The Secretary shall establish, 

20 within the Department, the Advanced Manufacturing Of21 fice (referred to in this subtitle as the ‘‘Office’’)— 

22 (1) to carry out basic and applied research, de23 velopment, and demonstration of new, energy-effi24 cient processes and materials— 


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1 (A) at a scale adequate to prove the value 

2 of the processes and materials to manufacturers 

3 in multiple industries; and 

4 (B) that facilitate investments and com5 mercial scale-up; 

6 (2) to focus on the conduct of activities that— 

7 (A) use new technology and processes to 

8 reuse existing products or update existing proc9 esses to achieve energy efficiency and promote 

10 energy savings; and 

11 (B) make use of new and emerging proc12 esses and materials; 

13 (3) to improve workforce development in ad14 vanced manufacturing; and 

15 (4) to enable the competitiveness of manufac16 turers and energy efficiency of manufacturing in the 

17 United States by developing broadly applicable tech18 nologies for energy-intensive and energy-dependent 

19 manufacturing by supporting research and develop20 ment directed towards— 

21 (A) advanced and critical materials that 

22 provide energy savings and efficiency; 

23 (B) emerging topics, technology, and proc24 esses in advanced manufacturing that promote 

25 energy savings; 


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1 (C) manufacturing platforms for advanced 

2 energy technologies; and 

3 (D) strategies to address current and fu4 ture workforce needs within the manufacturing 

5 sector. 

6 (b) INDUSTRY PARTICIPATION.—To the maximum 

7 extent practicable, the Office shall carry out activities in 

8 partnership or collaboration with relevant industry stake9 holders. 

10 (c) INTERAGENCY AND INTRA-AGENCY COORDINA11 TION.—The Secretary shall coordinate research, develop12 ment, demonstration, and commercial application activi13 ties of the Office among— 

14 (1) relevant programs within the Department, 

15 including— 

16 (A) the Office of Energy Efficiency and 

17 Renewable Energy; 

18 (B) the Office of Fossil Energy; 

19 (C) the Office of Nuclear Energy; 

20 (D) ARPA–E; 

21 (E) the Office of Energy Policy and Sys22 tems Analysis; and 

23 (F) other offices of the Department, as de24 termined to be appropriate by the Secretary; 

25 and 


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1 (2) relevant technology research and develop2 ment programs and workforce training programs in 

3 other Federal agencies. 

4 SEC. 2022. NATIONAL ADVANCED MANUFACTURING PLAN. 

5 (a) IN GENERAL.—Not later than 18 months after 

6 the date of enactment of this Act, the Secretary, in con7 sultation with the Secretary of Commerce, shall enter into 

8 an agreement with the National Academies to develop a 

9 national plan for smart and advanced manufacturing tech10 nology development and deployment to improve the pro11 ductivity, competitiveness, and energy efficiency of the 

12 manufacturing sector of the United States. 

13 (b) CONTENTS.— 

14 (1) IN GENERAL.—The plan developed under 

15 subsection (a) shall identify areas in which actions 

16 by the Secretary and the heads of other relevant 

17 Federal agencies would— 

18 (A) accelerate the development, deploy19 ment, and adoption of smart and advanced 

20 manufacturing technologies and processes; 

21 (B) result in greater energy efficiency of, 

22 and lower environmental impacts for, all United 

23 States manufacturers; 


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1 (C) enhance competitiveness and strength2 en the manufacturing sectors of the United 

3 States; and 

4 (D) improve workforce training, career and 

5 technical education, and incumbent worker 

6 training between manufacturing industry and 

7 training providers. 

8 (2) INCLUSIONS.—In identifying agency actions 

9 under paragraph (1), the Secretary shall include— 

10 (A) an assessment of actions of the De11 partment relating to smart and advanced manu12 facturing that were carried out before or after 

13 the date of enactment of this Act; 

14 (B) the establishment of voluntary inter15 connection protocols and performance stand16 ards; 

17 (C) the commercialization of existing re18 search results; 

19 (D) an assessment of existing high-per20 formance and cloud computing infrastructure 

21 and opportunities for those technologies to play 

22 a role in the design and production of advanced 

23 manufacturing technology; 

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1 lated to the manufacture of carbon fiber com2 posite, critical materials, advanced materials, 

3 and semiconductors; 

4 (F) identification and assessment of finan5 cial incentives or demonstration projects that 

6 could accelerate the commercialization of ad7 vanced technology; 

8 (G) an assessment and prioritization of 

9 emerging technologies and processes with the 

10 potential to increase manufacturing competi11 tiveness; 

12 (H) an analysis of the regions and indus13 tries that would benefit the most from imple14 menting smart manufacturing technologies; 

15 (I) an assessment of— 

16 (i) the lessons learned through the 

17 decades long partnership of the Depart18 ment with the automotive industry; and 

19 (ii) how lessons learned could be ap20 plied to interactions with other industries 

21 (including the aerospace industry) and in22 cluding— 

23 (I) an analysis of the resources 

24 needed to expand partnerships with 


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1 the Advanced Manufacturing Office to 

2 other industries; and 

3 (II) an assessment of which in4 dustries and technologies would ben5 efit most from partnering with the 

6 Department, based on— 

7 (aa) cost savings; 

8 (bb) energy savings; 

9 (cc) job creation; and 

10 (dd) environmental impacts; 

11 and 

12 (J) an assessment of current and future 

13 workforce needs within the advanced manufac14 turing industry that identifies any significant 

15 skill gaps and provides suggestions on ways to 

16 address the gaps. 

17 (c) BIENNIAL REVISIONS AND REPORT.— 

18 (1) BIENNIAL REVISIONS.—Not later than 2 

19 years after the date on which the Secretary com20 pletes the plan under subsection (a), and not less 

21 frequently than once every 2 years thereafter, the 

22 Secretary shall revise the plan to account for ad23 vancements in information and communication tech24 nology and manufacturing needs after the comple25 tion of the initial plan. 


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1 (2) REPORT.—The Secretary shall submit to 

2 Congress after each revision under paragraph (1) a 

3 report on the status of implementation of the plan 

4 established under subsection (a). 

5 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated to carry out the study under 

7 this section $25,000,000. 

8 SEC. 2023. ADVANCED MANUFACTURING SUPPLY CHAIN RE9 PORT. 

10 (a) IN GENERAL.—The Secretary shall enter into an 

11 arrangement with the National Academy of Sciences 

12 under which the National Academy of Sciences shall de13 velop a report that evaluates the manufacturing supply 

14 chains for various advanced manufacturing technologies, 

15 including— 

16 (1) an assessment of the strength, weaknesses, 

17 opportunities, and obstacles in the supply chains of 

18 advanced manufacturing technologies, including car19 bon fiber composite manufacturing, critical mate20 rials, advanced materials, and semiconductors; 

21 (2) analyses of— 

22 (A) the ways in which the supply chains 

23 have changed during the 25-year period pre24 ceding the date of enactment of this Act; 


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1 (B) whether the supply chains have been 

2 disrupted by unfair foreign competition; 

3 (C) the impact of global trade on the sup4 ply chains; and 

5 (D) current trends relating to the supply 

6 chains; 

7 (3) for each technology and process assessed, 

8 an analysis of which sections of the supply chain are 

9 critical for the United States to remain or become 

10 competitive in the manufacturing of the technology; 

11 and 

12 (4) recommendations on which emerging tech13 nologies and processes the United States should 

14 focus on in order to advance innovation in manufac15 turing capabilities to increase the competitiveness of 

16 United States manufacturing. 

17 (b) REPORT.—Not later than 2 years after the date 

18 on which the Secretary enters into the arrangement with 

19 the National Academy of Sciences under subsection (a), 

20 the National Academy of Sciences shall submit to the Sec21 retary, the Committee on Energy and Natural Resources 

22 of the Senate, and the Committee on Energy and Com23 merce of the House of Representatives a report that de24 scribes the findings and recommendations of the National 


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1 Academy of Sciences with respect to the assessment and 

2 analyses conducted under subsection (a). 

3 SEC. 2024. LEVERAGING EXISTING AGENCY PROGRAMS TO 

4 ASSIST SMALL AND MEDIUM MANUFACTUR5 ERS. 

6 (a) COLLABORATION WITH NATIONAL LABORA7 TORIES AND INSTITUTIONS OF HIGHER EDUCATION.— 

8 The Office shall work in collaboration with National Lab9 oratories and institutions of higher education to provide 

10 assistance to small and medium manufacturers with re11 spect to smart manufacturing technologies and practices. 

12 (b) EXPANSION OF TECHNICAL ASSISTANCE PRO13 GRAMS.—The Secretary shall expand the scope of tech14 nologies covered by the Industrial Assessment Centers— 

15 (1) to include smart manufacturing technologies 

16 and practices; and 

17 (2) to provide the directors of the Industrial 

18 Assessment Centers with the training and tools nec19 essary to provide to manufacturers technical assist20 ance in smart manufacturing technologies and prac21 tices, including energy management systems. 

22 SEC. 2025. ADVANCED MANUFACTURING INNOVATION 

23 HUBS. 

24 (a) DEFINITIONS.—In this section: 


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1 (1) ADVANCED MANUFACTURING.—The term 

2 ‘‘advanced manufacturing’’ means— 

3 (A) a technology, or process that— 

4 (i) depends on the use and coordina5 tion of information, automation, computa6 tion, software, sensing, and networking; 

7 (ii) makes use of new materials or 

8 reuses existing materials; or 

9 (iii) enhances the manufacturing com10 petitiveness of the United States; 

11 (B) research, development, demonstration, 

12 and commercial application activities necessary 

13 to ensure the long-term, secure, and sustainable 

14 supply of advanced materials; or 

15 (C) any other innovative energy technology 

16 area identified by the Secretary. 

17 (2) HUB.—The term ‘‘Hub’’ means an Ad18 vanced Manufacturing Innovation Hub established 

19 under subsection (b). 

20 (3) QUALIFYING ENTITY.—The term ‘‘quali21 fying entity’’ means— 

22 (A) an institution of higher education in 

23 partnership with industry; 


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1 (B) an appropriate Federal or State entity, 

2 including Federally Funded Research and De3 velopment Centers of the Department; 

4 (C) a nongovernmental organization with 

5 expertise in advanced manufacturing research, 

6 development, demonstration, or commercial ap7 plication activities; or 

8 (D) any other relevant entity that the Sec9 retary considers appropriate. 

10 (b) AUTHORIZATION OF PROGRAM.— 

11 (1) IN GENERAL.—The Secretary shall carry 

12 out a program to enhance the manufacturing com13 petitiveness of the United States by making awards 

14 to consortia for establishing and operating Advanced 

15 Manufacturing Innovation Hubs to conduct and sup16 port multidisciplinary, collaborative research, devel17 opment, demonstration, and commercial application 

18 of advance manufacturing technologies. 

19 (2) CENTRALIZED LOCATION.—To the max20 imum extent practicable, each Hub provided an 

21 award under this section shall be located at 1 cen22 tralized location. 

23 (3) TECHNOLOGY DEVELOPMENT FOCUS.—The 

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1 vanced manufacturing technology focus, process, or 

2 technology. 

3 (4) COORDINATION.—The Secretary shall en4 sure the coordination of, and avoid unnecessary du5 plication of, the activities of Hubs with the activities 

6 of other research entities of the Department (includ7 ing the National Laboratories and the Advanced Re8 search Projects Agency—Energy) and industry. 

9 (c) CONSORTIA.— 

10 (1) ELIGIBILITY.—To be eligible to receive an 

11 award under this section for the establishment and 

12 operation of a Hub, a consortium shall— 

13 (A) be composed of not fewer than 2 quali14 fying entities; and 

15 (B) operate subject to an agreement en16 tered into by the members of the consortium 

17 that documents— 

18 (i) the proposed partnership agree19 ment, including the governance and man20 agement structure of the Hub; 

21 (ii) measures to enable the cost-effec22 tive implementation of the program under 

23 this section; 


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1 (iii) a proposed budget for the Hub, 

2 including a description of financial con3 tributions from non-Federal sources; 

4 (iv) an accounting structure for the 

5 Hub that enables the Secretary to ensure 

6 that the consortium has complied with the 

7 requirements of this section; and 

8 (v) a plan to coordinate workforce 

9 training within Hub locations. 

10 (2) APPLICATION.— 

11 (A) IN GENERAL.—A consortium seeking 

12 to establish and operate a Hub under this sec13 tion, acting through a prime applicant, shall 

14 submit to the Secretary an application that ad15 dresses the elements of the consortium agree16 ment required under paragraph (1)(B). 

17 (B) MULTIPLE LOCATIONS.—If the consor18 tium members are not located at 1 centralized 

19 location, an application submitted under sub20 paragraph (A) shall include a communications 

21 plan that ensures close coordination and inte22 gration of the activities of the Hub. 

23 (d) SELECTION AND SCHEDULE.— 

24 (1) IN GENERAL.—The Secretary shall select 

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1 ation of Hubs through a competitive selection proc2 ess. 

3 (2) CONSIDERATIONS.—In selecting consortia 

4 under this section, the Secretary shall consider— 

5 (A) the information a consortium is re6 quired to document under subsection (c)(1)(B); 

7 (B) regional diversity; and 

8 (C) any existing facilities that a consor9 tium would provide for Hub activities. 

10 (3) TERM.— 

11 (A) IN GENERAL.—Awards made to a Hub 

12 under this section shall be for a period of not 

13 more than 5 years. 

14 (B) RENEWAL.—At the end of the 5-year 

15 period of an award under this section, the Sec16 retary may renew the award, subject to a rig17 orous merit review. 

18 (e) HUB OPERATIONS.— 

19 (1) IN GENERAL.—Each Hub shall conduct or 

20 provide for multidisciplinary, collaborative research, 

21 development, demonstration, and, as appropriate, 

22 commercial application of advanced manufacturing 

23 technologies within the technology development focus 

24 for the Hub designated under subsection (b)(3). 

25 (2) REQUIREMENTS.—Each Hub shall— 


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1 (A) encourage collaboration and commu2 nication among the member qualifying entities 

3 of the consortium and awardees by conducting 

4 activities, to the maximum extent practicable, 

5 at 1 centralized location; 

6 (B) develop and publish on the website of 

7 the Department proposed plans and programs; 

8 (C) submit an annual report to the Sec9 retary that summarizes, during the period cov10 ered by the report, the activities of the Hub, in11 cluding— 

12 (i) a detailed description of organiza13 tional expenditures by the Hub; and 

14 (ii) a description of each project un15 dertaken by the Hub; and 

16 (D) monitor project implementation and 

17 coordination. 

18 (3) CONFLICTS OF INTEREST.— 

19 (A) PROCEDURES.—A Hub shall maintain 

20 conflict of interest procedures, consistent with 

21 the procedures of the Department, to ensure 

22 that employees and consortia designees for Hub 

23 activities that are in decisionmaking capac24 ities— 


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1 (i) disclose all material conflicts of in2 terest; and 

3 (ii) avoid conflicts of interest. 

4 (B) DISQUALIFICATION AND REVOCA5 TION.—The Secretary may disqualify an appli6 cation or revoke funds distributed to a Hub if 

7 the Secretary discovers a failure to comply with 

8 conflict of interest procedures established under 

9 subparagraph (A). 

10 (4) PROHIBITION OF CONSTRUCTION.— 

11 (A) IN GENERAL.—No funds provided 

12 under this section may be used for the con13 struction of new buildings or facilities for a 

14 Hub. 

15 (B) COST-SHARING AGREEMENT.—Con16 struction of new buildings or facilities for a 

17 Hub shall not be considered as part of the non18 Federal share of a cost-sharing agreement of 

19 the Hub. 

20 (C) TEST BED AND RENOVATION EXCEP21 TION.—Nothing in this paragraph prohibits the 

22 use of funds provided under this section, or 

23 non-Federal cost share funds, for research or 

24 for the construction of a test bed or renovations 

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1 poses of research, if the Secretary determines 

2 that the test bed or renovations are limited to 

3 a scope and scale necessary for the research to 

4 be conducted. 

5 (f) TERMINATION.—The Secretary may terminate an 

6 underperforming Hub for cause during the award period. 

7 (g) LOAN PROGRAM.—The consortium from each 

8 Hub, in consultation with the Secretary, may identify best 

9 in class technologies that would be eligible for technical 

10 assistance, including assistance from loan programs of the 

11 Department, the Community Development Financial In12 stitution Program, Small Business Administration loan 

13 programs, Small Business Innovation Research and Small 

14 Business Technology Transfer programs, and rural energy 

15 loan programs of the Department of Agriculture. 

16 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to carry out this section 

18 $300,000,000. 

19 SEC. 2026. ADVANCED MATERIALS PRIZE COMPETITION 

20 PILOT PROGRAM. 

21 (a) IN GENERAL.—The Secretary shall establish a 

22 prize competition under which eligible entities compete to 

23 develop and verifiably demonstrate advanced materials 

24 technology that reduces energy costs or reduces carbon di25 oxide emissions by at least 20 percent. 


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1 (b) COMPETITION BOARD.—The Secretary shall es2 tablish a Competition Board to administer the prize com3 petition, to be composed of members from the Department 

4 and industry. 

5 (c) ELIGIBLE ENTITIES.—To be eligible for the com6 petition, an entity shall be— 

7 (1) a non-public entity; or 

8 (2) a public-private partnership in which the 

9 private entity is greater than 50 percent of the part10 nership. 

11 (d) AWARDS.—As part of the prize competition estab12 lished under this section, the Competition Board shall 

13 award to eligible entities not more than 5 prizes of not 

14 more than $2,000,000 each. 

15 (e) DURATION.—The duration for the prize competi16 tion established under this section shall be not less than 

17 2 years or more than 5 years. 

18 (f) SELECTION.—In selecting a winner for a prize 

19 awarded under the prize competition, the Competition 

20 Board shall evaluate the technology developed by the eligi21 ble entity based on the following criteria: 

22 (1) The amount by which the technology would 

23 increase energy savings or decrease carbon dioxide 

24 emissions. 


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1 (2) The ability of the technology to be deployed 

2 in commercial application in a variety of industries 

3 or supply chains. 

4 (3) The potential for private sector investment 

5 in the technology. 

6 (4) The potential of the technology to trans7 form an existing industry or establish a new indus8 try. 

9 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to carry out this section 

11 $10,000,000. 

12 SEC. 2027. PILOT PROGRAM WITH ORIGINAL EQUIPMENT 

13 MANUFACTURERS AND PUBLIC UTILITIES. 

14 The Office, in collaboration with the Industrial As15 sessment Centers at the Department, the National Insti16 tute of Standards and Technology, the Manufacturing Ex17 tension Partnership, original equipment manufacturers, 

18 and public utilities, shall develop a pilot program to work 

19 with small- and medium-manufacturers in supply chains 

20 of original equipment manufacturers to provide— 

21 (1) an assessment of manufacturing efficiency; 

22 and 

23 (2) best practices and technical assistance for 

24 implementing energy savings and efficiency in the 

25 manufacturing process. 


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1 Subtitle D—Building Better Trucks 

2 SEC. 2031. ADVANCED TECHNOLOGY VEHICLES MANUFAC3 TURING INCENTIVE PROGRAM. 

4 Section 136 of the Energy Independence and Security 

5 Act of 2007 (42 U.S.C. 17013) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1)— 

8 (i) by redesignating subparagraphs 

9 (A) through (C) as clauses (i) through 

10 (iii), respectively, and indenting appro11 priately; 

12 (ii) by striking ‘‘(1) ADVANCED TECH13 NOLOGY VEHICLE.—’’ and all that follows 

14 through ‘‘meets—’’ and inserting the fol15 lowing: 

16 ‘‘(1) ADVANCED TECHNOLOGY VEHICLE.—The 

17 term ‘advanced technology vehicle’ means— 

18 ‘‘(A) an ultra efficient vehicle; 

19 ‘‘(B) a light duty vehicle that meets—’’; 

20 (iii) in subparagraph (B)(iii) (as so 

21 redesignated), by striking the period at the 

22 end and inserting ‘‘; or’’; and 

23 (iv) by adding at the end the fol24 lowing: 


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1 ‘‘(C) a medium-duty or heavy-duty vehicle 

2 that— 

3 ‘‘(i)(I) is subject to regulations estab4 lished by the Secretary of Transportation 

5 under parts 523, 534, and 535 of title 49, 

6 Code of Federal Regulations (or successor 

7 regulations); or 

8 ‘‘(II) is included in a vehicle type or 

9 class that offers opportunities to substan10 tially reduce consumption of conventional 

11 motor fuel, as determined by the Secretary 

12 by rule; and 

13 ‘‘(ii) reduces consumption of conven14 tional motor fuel by 10 percent or greater 

15 as compared to model year 2010 medium16 and heavy-duty vehicles of a similar vehicle 

17 type or class, unless the Secretary deter18 mines by rule that— 

19 ‘‘(I) the percentage is not achiev20 able for a specific vehicle type or 

21 class; and 

22 ‘‘(II) an alternative percentage 

23 for that vehicle type or class will re24 sult in substantial reductions in motor 


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1 fuel consumption within the United 

2 States.’’; and 

3 (B) by striking paragraph (4) and insert4 ing the following: 

5 ‘‘(4) QUALIFYING COMPONENTS.—The term 

6 ‘qualifying components’ means components, systems, 

7 or groups of subsystems that the Secretary deter8 mines— 

9 ‘‘(A) to be designed to improve fuel econ10 omy or otherwise substantially reduce consump11 tion of conventional motor fuel; or 

12 ‘‘(B) to contribute measurably to the over13 all improved fuel use of an advanced technology 

14 vehicle.’’; 

15 (2) in subsection (b), in the matter preceding 

16 paragraph (1), by inserting ‘‘or other vehicle’’ after 

17 ‘‘ultra efficient vehicle’’; 

18 (3) by striking subsection (f) and inserting the 

19 following: 

20 ‘‘(f) FEES.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall charge 

22 a closing fee of 50 basis points of the loan to cover 

23 applicable administrative expenses. 

24 ‘‘(2) USE OF FEES.—Fees collected under para25 graph (1) shall— 


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1 ‘‘(A) be deposited by the Secretary into the 

2 general fund of the Treasury; and 

3 ‘‘(B) remain available until expended, sub4 ject to such other conditions as are contained in 

5 annual appropriations Acts.’’; and 

6 (4) in subsection (h)(1)(B), by striking ‘‘auto7 mobiles, or components of automobiles’’ and insert8 ing ‘‘automobiles or other vehicles, or components of 

9 automobiles or other vehicles’’. 

10 Subtitle E—Vehicle Innovation 

11 SEC. 2041. FINDINGS. 

12 Congress finds the following: 

13 (1) According to the Energy Information Ad14 ministration, the transportation sector accounts for 

15 approximately 28 percent of the United States pri16 mary energy demand and greenhouse gas emissions, 

17 and 21 percent of global oil demand. 

18 (2) The United States transportation sector is 

19 over 90-percent dependent on petroleum. 

20 (3) United States heavy truck fuel consumption 

21 will increase 27 percent by 2030. 

22 (4) The domestic automotive and commercial 

23 vehicle manufacturing sectors have increasingly lim24 ited resources for research, development, and engi25 neering of advanced technologies. 


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1 (5) Vehicle, engine, and component manufactur2 ers are playing a more important role in vehicle 

3 technology development, and should be better inte4 grated into Federal research efforts. 

5 (6) Priorities for the vehicle technologies re6 search of the Department have shifted drastically in 

7 recent years among diesel hybrids, hydrogen fuel cell 

8 vehicles, and plug-in electric hybrids, with little con9 tinuity among them. 

10 (7) The integration of vehicle, communication, 

11 and infrastructure technologies has great potential 

12 for efficiency gains through better management of 

13 the total transportation system. 

14 (8) The Federal Government should balance its 

15 role in researching longer-term exploratory concepts 

16 and developing nearer-term transformational tech17 nologies for vehicles. 

18 SEC. 2042. OBJECTIVES. 

19 The objectives of this subtitle are— 

20 (1) to develop United States technologies and 

21 practices that— 

22 (A) improve the fuel efficiency and emis23 sions of all vehicles produced in the United 

24 States; and 


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1 (B) reduce vehicle reliance on petroleum2 based fuels; 

3 (2) to support domestic research, development, 

4 engineering, demonstration, and commercial applica5 tion and manufacturing of advanced vehicles, en6 gines, and components; 

7 (3) to enable vehicles to move larger volumes of 

8 goods and more passengers with less energy and 

9 emissions; 

10 (4) to develop cost-effective advanced tech11 nologies for wide-scale utilization throughout the 

12 passenger, commercial, government, and transit ve13 hicle sectors; 

14 (5) to allow for greater consumer choice of vehi15 cle technologies and fuels; 

16 (6) shorten technology development and inte17 gration cycles in the vehicle industry; 

18 (7) to ensure a proper balance and diversity of 

19 Federal investment in vehicle technologies; and 

20 (8) to strengthen partnerships between Federal 

21 and State governmental agencies and the private 

22 and academic sectors. 

23 SEC. 2043. VEHICLE RESEARCH AND DEVELOPMENT PRO24 GRAM. 

25 (a) PROGRAM.— 


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1 (1) ACTIVITIES.—The Secretary shall conduct a 

2 program of basic and applied research, development, 

3 engineering, demonstration, and commercial applica4 tion activities on materials, technologies, and proc5 esses with the potential to substantially reduce or 

6 eliminate petroleum use and the emissions of pas7 senger and commercial vehicles in the United States, 

8 including activities in the areas of— 

9 (A) hybridization or full electrification of 

10 vehicle systems; 

11 (B) batteries and other energy storage de12 vices; 

13 (C) power electronics; 

14 (D) vehicle, component, and subsystem 

15 manufacturing technologies and processes; 

16 (E) engine efficiency and combustion opti17 mization; 

18 (F) waste heat recovery; 

19 (G) transmission and drivetrains; 

20 (H) hydrogen vehicle technologies, includ21 ing fuel cells and internal combustion engines, 

22 and hydrogen infrastructure, including hydro23 gen energy storage to enable renewables and 

24 provide hydrogen for fuel and power; 

25 (I) natural gas vehicle technologies; 


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1 (J) aerodynamics, rolling resistance (in2 cluding tires and wheel assemblies), and acces3 sory power loads of vehicles and associated 

4 equipment; 

5 (K) vehicle weight reduction, including 

6 lightweighting materials and the development of 

7 manufacturing processes to fabricate, assemble, 

8 and use dissimilar materials; 

9 (L) friction and wear reduction; 

10 (M) engine and component durability; 

11 (N) innovative propulsion systems; 

12 (O) advanced boosting systems; 

13 (P) hydraulic hybrid technologies; 

14 (Q) engine compatibility with and optimi15 zation for a variety of transportation fuels in16 cluding natural gas and other liquid and gas17 eous fuels; 

18 (R) predictive engineering, modeling, and 

19 simulation of vehicle and transportation sys20 tems; 

21 (S) refueling and charging infrastructure 

22 for alternative fueled and electric or plug-in 

23 electric hybrid vehicles, including the unique 

24 challenges facing rural areas; 


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1 (T) gaseous fuels storage systems and sys2 tem integration and optimization; 

3 (U) sensing, communications, and actu4 ation technologies for vehicle, electrical grid, 

5 and infrastructure; 

6 (V) efficient use, substitution, and recy7 cling of potentially critical materials in vehicles, 

8 including rare earth elements and precious met9 als, at risk of supply disruption; 

10 (W) aftertreatment technologies; 

11 (X) thermal management of battery sys12 tems; 

13 (Y) retrofitting advanced vehicle tech14 nologies to existing vehicles; 

15 (Z) development of common standards, 

16 specifications, and architectures for both trans17 portation and stationary battery applications; 

18 (AA) advanced internal combustion en19 gines; 

20 (BB) mild hybrid; 

21 (CC) engine down speeding; and 

22 (DD) other research areas as determined 

23 by the Secretary. 

24 (2) TRANSFORMATIONAL TECHNOLOGY.—The 

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1 tinues to support research, development, engineer2 ing, demonstration, and commercial application ac3 tivities and maintains competency in mid- to long4 term transformational vehicle technologies with po5 tential to achieve deep reductions in petroleum use 

6 and emissions, including activities in the areas of— 

7 (A) hydrogen vehicle technologies, includ8 ing fuel cells, hydrogen storage, infrastructure, 

9 and activities in hydrogen technology validation 

10 and safety codes and standards; 

11 (B) multiple battery chemistries and novel 

12 energy storage devices, including nonchemical 

13 batteries and electromechanical storage tech14 nologies such as hydraulics, flywheels, and com15 pressed air storage; 

16 (C) communication and connectivity among 

17 vehicles, infrastructure, and the electrical grid; 

18 and 

19 (D) other innovative technologies research 

20 and development, as determined by the Sec21 retary. 

22 (3) INDUSTRY PARTICIPATION.— 

23 (A) IN GENERAL.—To the maximum ex24 tent practicable, activities under this section 

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1 tion with automotive manufacturers, heavy com2 mercial, vocational, and transit vehicle manu3 facturers, qualified plug-in electric vehicle man4 ufacturers, compressed natural gas vehicle man5 ufacturers, vehicle and engine equipment and 

6 component manufacturers, manufacturing 

7 equipment manufacturers, advanced vehicle 

8 service providers, fuel producers and energy 

9 suppliers, electric utilities, institutions of higher 

10 education, the National Laboratories (as that 

11 term is defined in section 2 of the Energy Pol12 icy Act of 2005 (42 U.S.C. 15801)), and inde13 pendent research laboratories. 

14 (B) REQUIREMENTS.—In carrying out this 

15 section, the Secretary shall— 

16 (i)(I) determine whether a wide range 

17 of companies that manufacture or assem18 ble vehicles or components in the United 

19 States are represented in ongoing public 

20 private partnership activities, including 

21 firms that have not traditionally partici22 pated in federally sponsored research and 

23 development activities; and 

24 (II) if possible, partner with firms de25 scribed in subclause (II) that conduct sigVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00107 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 nificant and relevant research and develop2 ment activities in the United States; 

3 (ii) leverage the capabilities and re4 sources of, and formalize partnerships 

5 with, industry-led stakeholder organiza6 tions, nonprofit organizations, industry 

7 consortia, and trade associations with ex8 pertise in the research and development of, 

9 and education and outreach activities in, 

10 advanced automotive and commercial vehi11 cle technologies; 

12 (iii) develop more effective processes 

13 for transferring research findings and tech14 nologies to industry; 

15 (iv) give consideration to conversion of 

16 existing or former vehicle technology devel17 opment or manufacturing facilities for the 

18 purposes of this section; 

19 (v) support public-private partnerships 

20 dedicated to overcoming barriers in com21 mercial application of transformational ve22 hicle technologies that use the industry-led 

23 technology development facilities of entities 

24 with demonstrated expertise in successfully 

25 designing and engineering pre-commercial 


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1 generations of transformational vehicle 

2 technology; and 

3 (vi) promote efforts to ensure that 

4 technology research, development, engi5 neering, and commercial application activi6 ties funded under this section are carried 

7 out in the United States. 

8 (4) INTERAGENCY AND INTRAAGENCY COORDI9 NATION.—To the maximum extent practicable, the 

10 Secretary shall coordinate research, development, 

11 demonstration, and commercial application activities 

12 among— 

13 (A) relevant programs within the Depart14 ment, including— 

15 (i) the Office of Energy Efficiency 

16 and Renewable Energy; 

17 (ii) the Office of Science; 

18 (iii) the Office of Electricity Delivery 

19 and Energy Reliability; 

20 (iv) the Office of Fossil Energy; 

21 (v) the Advanced Research Projects 

22 Agency—Energy; and 

23 (vi) other offices as determined by the 

24 Secretary; and 


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1 (B) relevant technology research and devel2 opment programs within other Federal agen3 cies, as determined by the Secretary. 

4 (5) COORDINATION AND NONDUPLICATION.—In 

5 coordinating activities carried out under this section, 

6 the Secretary shall ensure, to the maximum extent 

7 practicable, that the activities do not duplicate those 

8 of other programs within the Department or other 

9 relevant research agencies. 

10 (6) FEDERAL DEMONSTRATION OF TECH11 NOLOGIES.—The Secretary shall make information 

12 available to procurement programs of Federal agen13 cies regarding the potential to demonstrate tech14 nologies resulting from activities funded through 

15 programs under this section. 

16 (7) INTERGOVERNMENTAL COORDINATION.— 

17 The Secretary shall seek opportunities to leverage 

18 resources and support initiatives of State and local 

19 governments in developing and promoting advanced 

20 vehicle technologies, manufacturing, and infrastruc21 ture. 

22 (8) CRITERIA.—In awarding grants under this 

23 program, the Secretary shall give priority to those 

24 technologies (either individually or as part of a sys25 tem) that— 


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1 (A) provide the greatest aggregate fuel 

2 savings based on the reasonable projected sales 

3 volumes of the technology; and 

4 (B) provide the greatest increase in em5 ployment in the United States. 

6 (b) SENSING AND COMMUNICATIONS TECH7 NOLOGIES.—The Secretary, in coordination with the rel8 evant research programs of other Federal agencies, shall 

9 conduct research, development, engineering, demonstra10 tion, and deployment activities on connectivity of vehicle 

11 roadway, vulnerable road users, traffic control systems, 

12 and transportation data systems, including on sensing, 

13 data, computation, communication, cybersecurity, and ac14 tuation technologies that allow for improved safety, re15 duced energy and fuel use, optimized traffic flow, and ve16 hicle electrification, including technologies for— 

17 (1) onboard vehicle, engine, transmission and 

18 component sensing, actuation, and calibration; 

19 (2) vehicle-to-vehicle sensing and communica20 tion; 

21 (3) vehicle-to-infrastructure sensing and com22 munication; 

23 (4) vehicle-to-pedestrian and vehicle-to-bicyclist 

24 sensing and communication; and 

25 (5) vehicle integration with the electrical grid. 


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1 (c) MANUFACTURING.—The Secretary shall carry out 

2 a research, development, engineering, demonstration, and 

3 commercial application program of advanced vehicle man4 ufacturing technologies and practices, including innovative 

5 processes— 

6 (1) to increase the production rate and decrease 

7 the cost of advanced battery and fuel cell manufac8 turing; 

9 (2) to vary the capability of individual manufac10 turing facilities to accommodate different battery 

11 chemistries and configurations; 

12 (3) to reduce waste streams, emissions, and en13 ergy intensity of vehicle, engine, advanced battery 

14 and component manufacturing processes; 

15 (4) to recycle and remanufacture used batteries 

16 and other vehicle components for reuse in vehicles or 

17 stationary applications; 

18 (5) to develop manufacturing processes to effec19 tively fabricate, assemble, and produce cost-effective 

20 lightweight materials such as advanced aluminum 

21 and other metal alloys, polymeric composites, and 

22 carbon fiber for use in vehicles; 

23 (6) to produce lightweight high pressure storage 

24 systems for gaseous fuels; 


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1 (7) to design and manufacture purpose-built hy2 drogen fuel cell vehicles and components; 

3 (8) to improve the calendar life and cycle life of 

4 advanced batteries; and 

5 (9) to produce permanent magnets for advanced 

6 vehicles. 

7 (d) USER TESTING FACILITIES.—Activities under 

8 this section may include construction, expansion, or modi9 fication of new and existing vehicle, engine, and compo10 nent research and testing facilities for— 

11 (1) testing or simulating interoperability of a 

12 variety of vehicle components and systems, including 

13 the technologies described in subsection (b); 

14 (2) subjecting whole or partial vehicle platforms 

15 to fully representative duty cycles and operating con16 ditions; 

17 (3) developing and demonstrating a range of 

18 chemistries and configurations for advanced vehicle 

19 battery manufacturing; 

20 (4) developing and demonstrating test cycles for 

21 new and alternative fuels, and other advanced vehi22 cle technologies; 

23 (5) developing and demonstrating methods to 

24 charge electric vehicles and connect them to the elec25 tric grid; and 


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1 (6) developing, testing, and demonstrating hy2 drogen and natural gas refueling station tech3 nologies. 

4 (e) REPORTING.— 

5 (1) TECHNOLOGIES DEVELOPED.—Not later 

6 than 18 months after the date of enactment of this 

7 Act and annually thereafter through 2020, the Sec8 retary shall submit to Congress a report regarding 

9 the technologies developed as a result of the activi10 ties authorized by this section, with a particular em11 phasis on whether the technologies were successfully 

12 adopted for commercial applications, and if so, 

13 whether products relying on those technologies are 

14 manufactured in the United States. 

15 (2) ADDITIONAL MATTERS.—At the end of each 

16 fiscal year through 2020 the Secretary shall submit 

17 to the relevant Congressional committees of jurisdic18 tion an annual report describing activities under19 taken in the previous year under this section, active 

20 industry participants, efforts to recruit new partici21 pants committed to design, engineering, and manu22 facturing of advanced vehicle technologies in the 

23 United States, progress of the program in meeting 

24 goals and timelines, and a strategic plan for funding 

25 of activities across agencies. 


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1 SEC. 2044. MEDIUM- AND HEAVY-DUTY COMMERCIAL AND 

2 TRANSIT VEHICLES PROGRAM. 

3 (a) PROGRAM.— 

4 (1) IN GENERAL.—The Secretary, in partner5 ship with relevant research and development pro6 grams in other Federal agencies, and a range of ap7 propriate industry stakeholders, shall carry out a 

8 program of cooperative research, development, dem9 onstration, and commercial application activities on 

10 advanced technologies for medium- to heavy-duty 

11 commercial, vocational, recreational, and transit ve12 hicles, including activities in the areas of— 

13 (A) engine efficiency and combustion re14 search; 

15 (B) onboard storage technologies for com16 pressed and liquefied natural gas; 

17 (C) development and integration of engine 

18 technologies designed for natural gas operation 

19 of a variety of vehicle platforms; 

20 (D) waste heat recovery and conversion; 

21 (E) improved aerodynamics and tire rolling 

22 resistance; 

23 (F) energy and space-efficient emissions 

24 control systems; 


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1 (G) mild hybrid, heavy hybrid, hybrid hy2 draulic, plug-in hybrid, and electric platforms, 

3 and energy storage technologies; 

4 (H) drivetrain optimization; 

5 (I) friction and wear reduction; 

6 (J) engine idle and parasitic energy loss 

7 reduction; 

8 (K) electrification of accessory loads; 

9 (L) onboard sensing and communications 

10 technologies; 

11 (M) advanced lightweighting materials and 

12 vehicle designs; 

13 (N) increasing load capacity per vehicle; 

14 (O) thermal management of battery sys15 tems; 

16 (P) recharging infrastructure; 

17 (Q) compressed natural gas infrastructure; 

18 (R) advanced internal combustion engines; 

19 (S) complete vehicle and power pack mod20 eling, simulation, and testing; 

21 (T) hydrogen vehicle technologies, includ22 ing fuel cells and internal combustion engines, 

23 and hydrogen infrastructure, including hydro24 gen energy storage to enable renewables and 

25 provide hydrogen for fuel and power; 


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1 (U) retrofitting advanced technologies onto 

2 existing truck fleets; 

3 (V) advanced boosting systems; 

4 (W) engine down speeding; and 

5 (X) integration of these and other ad6 vanced systems onto a single truck and trailer 

7 platform. 

8 (2) REPORTING.—At the end of each fiscal year 

9 through fiscal year 2020, the Secretary shall submit 

10 to Congress an annual report describing activities 

11 undertaken in the previous year under this section, 

12 active industry participants, efforts to recruit new 

13 participants, progress of the program in meeting 

14 goals and timelines, and a strategic plan for funding 

15 of activities across agencies. 

16 (b) CLASS 8 TRUCK AND TRAILER SYSTEMS DEM17 ONSTRATION.— 

18 (1) IN GENERAL.—The Secretary shall conduct 

19 a competitive grant program to demonstrate the in20 tegration of multiple advanced technologies on Class 

21 8 truck and trailer platforms, including a combina22 tion of technologies listed in subsection (a)(1). 

23 (2) APPLICANT TEAMS.—Applicant teams may 

24 be comprised of truck and trailer manufacturers, en25 gine and component manufacturers, fleet customers, 


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1 university researchers, and other applicants as ap2 propriate for the development and demonstration of 

3 integrated Class 8 truck and trailer systems. 

4 (c) TECHNOLOGY TESTING AND METRICS.—The Sec5 retary, in coordination with the partners of the inter6 agency research program described in subsection (a)(1)— 

7 (1) shall develop standard testing procedures 

8 and technologies for evaluating the performance of 

9 advanced heavy vehicle technologies under a range of 

10 representative duty cycles and operating conditions, 

11 including for heavy hybrid propulsion systems; 

12 (2) shall evaluate heavy vehicle performance 

13 using work performance-based metrics other than 

14 those based on miles per gallon, including those 

15 based on units of volume and weight transported for 

16 freight applications, and appropriate metrics based 

17 on the work performed by nonroad systems; and 

18 (3) may construct heavy duty truck and bus 

19 testing facilities. 

20 (d) NONROAD SYSTEMS PILOT PROGRAM.—The Sec21 retary shall undertake a pilot program of research, devel22 opment, demonstration, and commercial applications of 

23 technologies to improve total machine or system efficiency 

24 for nonroad mobile equipment including agricultural, con25 struction, air, and sea port equipment, and shall seek opVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 portunities to transfer relevant research findings and tech2 nologies between the nonroad and on-highway equipment 

3 and vehicle sectors. 

4 SEC. 2045. AUTHORIZATION OF APPROPRIATIONS. 

5 There are authorized to be appropriated to the Sec6 retary for research, development, engineering, demonstra7 tion, and commercial application of vehicles and related 

8 technologies in the United States, including activities au9 thorized under this subtitle— 

10 (1) for fiscal year 2016, $313,567,000; 

11 (2) for fiscal year 2017, $326,109,000; 

12 (3) for fiscal year 2018, $339,154,000; 

13 (4) for fiscal year 2019, $352,720,000; and 

14 (5) for fiscal year 2020, $366,829,000. 

15 Subtitle F—Carbon Fiber 

16 Recycling 

17 SEC. 2051. RECYCLED CARBON FIBER STUDY. 

18 (a) STUDY.—The Secretary shall conduct a study 

19 on— 

20 (1) the technology of recycled carbon fiber and 

21 production waste carbon fiber; and 

22 (2) the potential lifecycle energy savings and 

23 economic impact of recycled carbon fiber. 


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1 (b) FACTORS FOR CONSIDERATION.—In conducting 

2 the study under subsection (a), the Secretary shall take 

3 into consideration— 

4 (1) the quantity of recycled carbon fiber or pro5 duction waste carbon fiber that would make the use 

6 of recycled carbon fiber or production waste carbon 

7 fiber economically viable; 

8 (2) any existing or potential barriers to recy9 cling carbon fiber or using recycled carbon fiber; 

10 (3) any financial incentives that may be nec11 essary for the development of recycled carbon fiber 

12 or production waste carbon fiber; 

13 (4) the potential lifecycle savings in energy 

14 from producing recycled carbon fiber, as compared 

15 to producing new carbon fiber; 

16 (5) the best and highest use for recycled carbon 

17 fiber; 

18 (6) the potential reduction in carbon dioxide 

19 emissions from producing recycled carbon fiber, as 

20 compared to producing new carbon fiber; 

21 (7) any economic benefits gained from using re22 cycled carbon fiber or production waste carbon fiber; 

23 (8) workforce training and skills needed to ad24 dress labor demands in the development of recycled 

25 carbon fiber or production waste carbon fiber; and 


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1 (9) how the Department can leverage existing 

2 efforts in the industry on the use of production 

3 waste carbon fiber. 

4 (c) REPORT.—Not later than 1 year after the date 

5 of enactment of this Act, the Secretary shall submit to 

6 Congress a report describing the results of the study con7 ducted under subsection (a). 

8 SEC. 2052. CARBON FIBER RECYCLING DEMONSTRATION 

9 PROJECT. 

10 The Secretary shall consult with the aviation and 

11 automotive industries and existing programs of the Ad12 vanced Manufacturing Office of the Department to de13 velop a carbon fiber recycling demonstration project. 

14 SEC. 2053. AUTHORIZATION OF APPROPRIATIONS. 

15 There is authorized to be appropriated to carry out 

16 this subtitle $10,000,000, to remain available until ex17 pended. 

18 Subtitle G—Job Creation Through 

19 Energy Efficient Manufacturing 

20 SEC. 2061. PURPOSE. 

21 The purpose of this subtitle is to encourage wide22 spread deployment of energy efficiency and onsite renew23 able energy technologies in manufacturing and industrial 

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1 lishment of a Financing Energy Efficient Manufacturing 

2 Program that would— 

3 (1) encourage the widespread availability of fi4 nancial products and programs with attractive rates 

5 and terms that significantly reduce or eliminate up6 front expenses to allow manufacturing and industrial 

7 businesses to invest in energy efficiency measures, 

8 onsite clean and renewable energy systems, smart 

9 grid systems, and alternative vehicle fleets by pro10 viding credit support, credit enhancement, secondary 

11 markets, and other support to originators of the fi12 nancial products and sponsors of the financing pro13 grams; and 

14 (2) help building owners to invest in measures 

15 and systems that reduce energy costs, in many cases 

16 creating a net cost savings that can be realized in 

17 the short-term, and may also allow manufacturing 

18 and industrial business owners to defer capital ex19 penditures, save money to hire new workers, and in20 crease the value, comfort, and sustainability of the 

21 property of the owners. 

22 SEC. 2062. DEFINITIONS. 

23 In this subtitle: 

24 (1) COVERED PROGRAM.—The term ‘‘covered 

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1 ciency retrofit, onsite clean and renewable energy, 

2 smart grid, and alternative vehicle fleet projects for 

3 industrial businesses. 

4 (2) STATE.—The term ‘‘State’’ means— 

5 (A) a State; 

6 (B) the District of Columbia; 

7 (C) the Commonwealth of Puerto Rico; 

8 and 

9 (D) any other territory or possession of the 

10 United States. 

11 SEC. 2063. FINANCING ENERGY EFFICIENT MANUFAC12 TURING PROGRAM. 

13 (a) ESTABLISHMENT.—The Secretary shall establish 

14 a program, to be known as the ‘‘Financing Energy Effi15 cient Manufacturing Program’’, under which the Secretary 

16 shall provide grants to States to establish or expand cov17 ered programs. 

18 (b) APPLICATIONS.— 

19 (1) IN GENERAL.—A State may apply to the 

20 Secretary for a grant under subsection (a) to estab21 lish or expand covered programs. 

22 (2) EVALUATION.—The Secretary shall evaluate 

23 applications submitted by States under paragraph 

24 (1) on the basis of— 


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1 (A) the likelihood that the covered pro2 gram would— 

3 (i) be established or expanded; and 

4 (ii) increase the total investment and 

5 energy savings of retrofit projects to be 

6 supported; 

7 (B) in the case of industrial business effi8 ciency financing initiatives conducted under 

9 subsection (c), evidence of multi-State coopera10 tion and coordination with lenders, financiers, 

11 and owners; and 

12 (C) other factors that would advance the 

13 purposes of this subtitle, as determined by the 

14 Secretary. 

15 (c) MULTI-STATE FACILITATION.—The Secretary 

16 shall consult with States and relevant stakeholders with 

17 applicable expertise to establish a process to identify fi18 nancing opportunities for manufacturing and industrial 

19 business with asset portfolios across multiple States. 

20 (d) ADMINISTRATION.—A State receiving a grant 

21 under subsection (a) shall give a higher priority to covered 

22 programs that— 

23 (1) leverage private and non-Federal sources of 

24 funding; and 


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1 (2) aim explicitly to expand the use of energy 

2 efficiency project financing using private sources of 

3 funding. 

4 (e) DAVIS-BACON COMPLIANCE.— 

5 (1) IN GENERAL.—All laborers and mechanics 

6 employed on projects funded directly by or assisted 

7 in whole or in part by this subtitle shall be paid 

8 wages at rates not less than those prevailing on 

9 projects of a character similar in the locality as de10 termined by the Secretary of Labor in accordance 

11 with subchapter IV of chapter 31 of part A of sub12 title II of title 40, United States Code (commonly 

13 referred to as the ‘‘Davis-Bacon Act’’). 

14 (2) AUTHORITY.—With respect to the labor 

15 standards specified in this subsection, the Secretary 

16 of Labor shall have the authority and functions set 

17 forth in Reorganization Plan Numbered 14 of 1950 

18 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 

19 title 40, United States Code. 

20 (f) REPORTS.— 

21 (1) IN GENERAL.—Not later than 2 years after 

22 the date of receipt of a grant under this subtitle, a 

23 State shall submit to the Secretary, the Committee 

24 on Energy and Natural Resources of the Senate, 

25 and the Committee on Energy and Commerce of the 


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1 House of Representatives a report that describes the 

2 performance of covered programs carried out using 

3 the grant funds. 

4 (2) DATA.— 

5 (A) IN GENERAL.—A State receiving a 

6 grant under this subtitle, in cooperation with 

7 the Secretary, shall— 

8 (i) collect and share data resulting 

9 from covered programs carried out under 

10 this subtitle; and 

11 (ii) include in the report submitted 

12 under paragraph (1) any data collected 

13 under clause (i). 

14 (B) DEPARTMENT DATABASES.—The Sec15 retary shall incorporate data described in sub16 paragraph (A) into appropriate databases of the 

17 Department, with provisions for the protection 

18 of confidential business data. 

19 SEC. 2064. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) IN GENERAL.—There is authorized to be appro21 priated to carry out this subtitle $250,000,000, to remain 

22 available until expended. 

23 (b) STATE ENERGY OFFICES.—Funds provided to a 

24 State under this subtitle shall be provided to the office 

25 within the State that is responsible for developing the 


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1 State energy plan for the State under part D of title III 

2 of the Energy Policy and Conservation Act (42 U.S.C. 

3 6321 et seq). 

4 Subtitle H—21st Century Energy 

5 Workforce 

6 SEC. 2101. FINDINGS. 

7 Congress finds that— 

8 (1) the energy sector is the third-largest indus9 try in the United States; 

10 (2) 1,500,000 new skilled workers will be need11 ed in the energy sector over the next 15 years; and 

12 (3) a skilled workforce is a critical component 

13 of ensuring the growth of the energy sector in the 

14 United States. 

15 SEC. 2102. DEFINITIONS. 

16 In this subtitle: 

17 (1) BOARD.—The term ‘‘Board’’ means the Na18 tional Center of Excellence for the 21st Century 

19 Workforce Advisory Board established under section 

20 2103(a). 

21 (2) COMMUNITY COLLEGE.—The term ‘‘commu22 nity college’’ means a junior or community college 

23 (as defined in section 312(f) of the Higher Edu24 cation Act of 1965 (20 U.S.C. 1058(f))). 


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1 (3) PROGRAM.—The term ‘‘program’’ means 

2 the pilot program established under section 2104(a). 

3 (4) VETERANS SERVICE ORGANIZATION.—The 

4 term ‘‘veterans service organization’’ means an orga5 nization recognized by the Secretary of Veterans Af6 fairs for the representation of veterans under section 

7 5902 of title 38, United States Code. 

8 SEC. 2103. NATIONAL CENTER OF EXCELLENCE FOR THE 

9 21st CENTURY WORKFORCE. 

10 (a) IN GENERAL.—The Secretary shall establish a 

11 nationwide advisory board, to be known as the ‘‘National 

12 Center of Excellence for the 21st Century Workforce Advi13 sory Board’’, to foster strategic vision, guidance, and net14 works for the energy industry. 

15 (b) REPRESENTATIVES.—The members of the Board 

16 shall consist of energy sector stakeholders, including— 

17 (1) representatives of relevant industries; 

18 (2) experts in labor, economics, and workforce 

19 development; 

20 (3) representatives of States and units of local 

21 government; 

22 (4) representatives of elementary and secondary 

23 education and postsecondary education; and 

24 (5) representatives of labor organizations. 

25 (c) PURPOSES.—The purposes of the Board are— 


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1 (1) to support and develop training and science 

2 education programs that— 

3 (A) meet the industry and labor needs of 

4 the energy and advanced manufacturing sec5 tors; and 

6 (B) provide opportunities for students to 

7 become qualified for placement in traditional 

8 and clean energy sector jobs; 

9 (2) to align apprenticeship programs and indus10 try certifications to further develop succession plan11 ning in the energy sector; 

12 (3) to integrate educational standards to de13 velop foundational skills for elementary and sec14 ondary education and postsecondary education to 

15 create a pipeline between education and career; and 

16 (4) to support the replication of existing model 

17 energy curricula, particularly in new and emerging 

18 technologies, that lead to industry-wide credentials. 

19 SEC. 2104. ENERGY WORKFORCE PILOT GRANT PROGRAM. 

20 (a) IN GENERAL.—Not later than 1 year after the 

21 date of enactment of this Act, the Secretary, in consulta22 tion with the Secretary of Labor and the Secretary of 

23 Education, shall establish a pilot program to award grants 

24 on a competitive basis to eligible entities for job training 

25 programs that lead to an industry-recognized credential. 


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1 (b) ELIGIBILITY.—To be eligible to receive a grant 

2 under this section, an entity shall be a public or nonprofit 

3 organization, or a consortium of such organizations, 

4 that— 

5 (1) includes an advisory board of proportional 

6 participation, as determined by the Secretary, of rel7 evant organizations, including— 

8 (A) relevant energy industry organizations, 

9 including public and private employers; 

10 (B) labor organizations; and 

11 (C) elementary and secondary education 

12 and postsecondary education organizations; 

13 (2) demonstrates experience in implementing 

14 and operating job training and education programs; 

15 (3) demonstrates the ability to recruit and sup16 port individuals who plan to work in the energy in17 dustry in the successful completion of relevant job 

18 training and education programs; and 

19 (4) provides students who complete the job 

20 training and education program with an industry21 recognized credential. 

22 (c) APPLICATIONS.—Eligible entities desiring a grant 

23 under this section shall submit to the Secretary an appli24 cation at such time, in such manner, and containing such 

25 information as the Secretary may require. 


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1 (d) PRIORITY.—In selecting eligible entities to receive 

2 grants under this section, the Secretary shall prioritize ap3 plicants that— 

4 (1) house the job training and education pro5 grams in— 

6 (A) a community college or institution of 

7 higher education that includes basic science and 

8 math education in the curriculum of the com9 munity college, institution of higher education; 

10 or 

11 (B) an apprenticeship program registered 

12 with the Department of Labor; 

13 (2) work with the Secretary of Defense or vet14 erans service organizations to transition members of 

15 the Armed Forces and veterans to careers in the en16 ergy sector; 

17 (3) apply as a State or regional consortia to le18 verage best practices already available in the State 

19 or region in which the community college or institu20 tion of higher education is located; 

21 (4) have a State-supported entity included in 

22 the application; 

23 (5) include an apprenticeship program reg24 istered with the Department of Labor as part of the 

25 job training and education program; 


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1 (6) develop a mentorship program for energy 

2 professionals and elementary and secondary edu3 cation students; 

4 (7) provide support services and career coach5 ing; 

6 (8) provide introductory energy workforce devel7 opment and advanced manufacturing training; or 

8 (9) work with an Indian tribe (as defined in 

9 section 4 of the Indian Self-Determination and Edu10 cation Assistance Act (25 U.S.C. 450b)). 

11 (e) ADDITIONAL CONSIDERATION.—In making 

12 grants under this section, the Secretary shall consider re13 gional diversity. 

14 (f) LIMITATION ON APPLICATIONS.—An eligible enti15 ty may not submit, either individually or as part of a joint 

16 application, more than 1 application for a grant under this 

17 section during any 1 fiscal year. 

18 (g) LIMITATIONS ON AMOUNT OF GRANT.—The 

19 amount of a grant for any 1 year shall not exceed 

20 $1,000,000. 

21 (h) COST SHARING.— 

22 (1) FEDERAL SHARE.—The Federal share of 

23 the cost of a job training and education program 

24 carried out using a grant under this section shall be 

25 not greater than 65 percent. 


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1 (2) NON-FEDERAL SHARE.— 

2 (A) IN GENERAL.—The non-Federal share 

3 of the cost of a job training and education pro4 gram carried out using a grant under this sec5 tion shall consist of not less than 50 percent 

6 cash. 

7 (B) LIMITATION.—Not greater than 50 

8 percent of the non-Federal contribution of the 

9 total cost of a job training and education pro10 gram carried out using a grant under this sec11 tion shall be in the form of in-kind contribu12 tions of goods or services fairly valued. 

13 (i) REDUCTION OF DUPLICATION.—Prior to submit14 ting an application for a grant under this section, each 

15 applicant shall consult with the applicable agencies of the 

16 Federal Government and coordinate the proposed activi17 ties of the applicant with existing State and local pro18 grams. 

19 (j) TECHNICAL ASSISTANCE.—The Secretary shall 

20 provide technical assistance and capacity building to na21 tional and State energy partnerships, including the enti22 ties described in subsection (b)(1), to leverage the existing 

23 job training and education programs of the Department. 

24 (k) REPORT.—The Secretary shall submit to Con25 gress and make publicly available on the website of the 


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1 Department an annual report on the program established 

2 under this section, including a description of— 

3 (1) the entities receiving grants; 

4 (2) the activities carried out using the grants; 

5 (3) best practices used to leverage the invest6 ment of the Federal Government; 

7 (4) the rate of employment for participants 

8 after completing a job training and education pro9 gram carried out using a grant; and 

10 (5) an assessment of the results achieved by the 

11 program. 

12 (l) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $20,000,000 for each of fiscal years 2016 through 2019. 

15 Subtitle I—Solar Installations 

16 SEC. 2111. LOAN AND GRANT PROGRAM FOR SOLAR IN17 STALLATIONS IN LOW-INCOME AND UNDER18 SERVED AREAS. 

19 (a) DEFINITIONS.—In this section: 

20 (1) ADMINISTRATIVE EXPENSES.—The term 

21 ‘‘administrative expenses’’ has such meaning as may 

22 be established by the Secretary. 

23 (2) COMMUNITY SOLAR FACILITY.—The term 

24 ‘‘community solar facility’’ means a communityVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 based distributed photovoltaic solar electricity gener2 ating facility that, as determined by the Secretary— 

3 (A) is owned by a subscriber organization; 

4 (B) has a nameplate rating of 2 megawatts 

5 or less; 

6 (C) is located in or near a community of 

7 subscribers to whom the beneficial use of the 

8 electricity generated by the facility belongs; and 

9 (D) reserves not less than 25 percent of 

10 the quantity of electricity generated by the fa11 cility for low-income households that are sub12 scribers to the facility. 

13 (3) GRANT-ELIGIBLE HOUSEHOLD.—The term 

14 ‘‘grant-eligible household’’ means a household the 

15 members of which— 

16 (A) earn an income equal to 80 percent or 

17 less of the applicable area median income, as 

18 defined for the applicable year by the Secretary 

19 of Housing and Urban Development; and 

20 (B) reside in an owner-occupied home. 

21 (4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

22 means any Indian tribe, band, nation, or other orga23 nized group or community, including any Alaskan 

24 Native village or regional or village corporation (as 

25 defined in, or established pursuant to, the Alaska 


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1 Native Claims Settlement Act (43 U.S.C. 1601 et 

2 seq.)), that is recognized as eligible for the special 

3 programs and services provided by the United States 

4 to Indians because of their status as Indians. 

5 (5) LOAN-ELIGIBLE ENTITY.—The term ‘‘loan6 eligible entity’’ means— 

7 (A) a nonprofit entity; 

8 (B) a unit of State, territorial, or local 

9 government; 

10 (C) an Indian tribe; 

11 (D) a rural community (as defined in sec12 tion 343(a) of the Consolidated Farm and 

13 Rural Development Act (7 U.S.C. 1991(a)); 

14 and 

15 (E) any other national or regional entity 

16 that— 

17 (i) deploys a safe, high-quality photo18 voltaic solar electricity generating facility 

19 for consumers under a model that maxi20 mizes energy savings to those consumers; 

21 and 

22 (ii) has experience, as determined by 

23 the Secretary, installing solar systems 

24 using a job training or community volun25 teer-based installation model. 


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1 (6) LOW-INCOME HOUSEHOLD.—The term 

2 ‘‘low-income household’’ means a household with an 

3 income equal to 80 percent or less of the applicable 

4 area median income, as defined for the applicable 

5 year by the Secretary of Housing and Urban Devel6 opment. 

7 (7) MULTI-FAMILY AFFORDABLE HOUSING.— 

8 The term ‘‘multi-family affordable housing’’ means 

9 any federally subsidized affordable housing complex 

10 in which at least 50 percent of the units are reserved 

11 for low-income households. 

12 (8) PHOTOVOLTAIC SOLAR ELECTRICITY GEN13 ERATING FACILITY.—The term ‘‘photovoltaic solar 

14 electricity generating facility’’ means— 

15 (A) a generator that creates electricity 

16 from light photons; and 

17 (B) the accompanying hardware enabling 

18 that electricity to flow— 

19 (i) onto the electric grid; or 

20 (ii) into an energy storage device. 

21 (9) SUBSCRIBER.—The term ‘‘subscriber’’ 

22 means an electricity consumer who— 

23 (A) owns a subscription, or an equivalent 

24 unit or share of the capacity or generation, of 

25 a community solar facility; 


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1 (B) has identified 1 or more physical loca2 tions— 

3 (i) to which the subscription will be 

4 attributed; 

5 (ii) within the same electric utility 

6 service territory, or within the same geo7 graphical area, as the community solar fa8 cility, in accordance with applicable State 

9 and local law; and 

10 (iii) that may change from time to 

11 time, subject to the condition that the 

12 physical location shall be within the geo13 graphical limits allowed for a subscriber of 

14 the applicable community solar facility; 

15 and 

16 (C) confirms the status of the consumer as 

17 a grant-eligible household for each applicable 

18 fiscal year. 

19 (10) SUBSCRIPTION.—The term ‘‘subscription’’ 

20 means a share in the capacity, or a proportional in21 terest in the solar electricity generation, of a com22 munity solar facility. 

23 (11) UNDERSERVED AREA.—The term ‘‘under24 served area’’ means a geographical area with low or 


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1 no photovoltaic solar deployment, as determined by 

2 the Secretary. 

3 (b) ESTABLISHMENT OF LOAN AND GRANT PRO4 GRAM.— 

5 (1) IN GENERAL.—The Secretary shall establish 

6 a program under which the Secretary shall provide 

7 loans and grants to grant-eligible households and 

8 loan-eligible entities for use in accordance with this 

9 section. 

10 (2) FUNDING.— 

11 (A) IN GENERAL.—Subject to the avail12 ability of appropriations, the Secretary shall 

13 make grants and issue loans in accordance with 

14 this subsection. 

15 (B) LOANS.—Subject to subparagraph 

16 (D), not more than 50 percent of funds made 

17 available under subparagraph (A) for a fiscal 

18 year shall be used to provide loans to loan-eligi19 ble entities for— 

20 (i) community solar facilities; or 

21 (ii) multi-family affordable housing 

22 solar installations. 

23 (C) GRANTS.—After allocating amounts to 

24 carry out subparagraph (B), the Secretary shall 

25 use the remaining funds made available under 


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1 subparagraph (A) for a fiscal year to provide 

2 grants to grant-eligible households— 

3 (i) to pay the upfront costs of photo4 voltaic solar electricity generating facilities; 

5 or 

6 (ii) for any other eligible use described 

7 in subsection (e). 

8 (D) INCREASE IN GRANT AMOUNT.—Not9 withstanding subparagraph (A), if the Secretary 

10 determines that more than 50 percent of the 

11 amounts described in that subparagraph are 

12 necessary during any of fiscal years 2016 

13 through 2030 to provide grants to encourage 

14 innovative financing and installation models to 

15 reach underserved markets, the Secretary may 

16 use more than 50 percent of those amounts to 

17 provide those grants. 

18 (3) GOALS AND ACCOUNTABILITY.— 

19 (A) IN GENERAL.—In providing loans and 

20 grants under this subsection, the Secretary 

21 shall take such actions as may be necessary to 

22 ensure that— 

23 (i) the assistance provided under this 

24 subsection is used to facilitate and encour25 age innovative solar installation and fiVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 nancing models, under which the recipients 

2 develop and install photovoltaic solar elec3 tricity generating facilities that provide sig4 nificant savings to low-income households 

5 while providing job training or community 

6 engagement opportunities with respect to 

7 each solar system installed; 

8 (ii) loan and grant recipients shall— 

9 (I) have installed not less than 

10 600 kilowatts of photovoltaic solar en11 ergy during the 2-year period pre12 ceding the date on which the loan or 

13 grant is provided to ensure consumer 

14 protection; or 

15 (II) until the goal described in 

16 subclause (I) is achieved, enter into 

17 partnership with an entity that— 

18 (aa) has not less than 2 

19 years of experience deploying 

20 solar photovoltaic systems for 

21 low-income households in a man22 ner that maximizes the savings 

23 benefits of solar access; and 

24 (bb) was primarily respon25 sible for the installation of at 


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1 least 2 megawatts of solar energy 

2 during the 2-year period pre3 ceding the date on which the loan 

4 or grant is provided; 

5 (iii) the photovoltaic solar electricity 

6 generating facilities installed using assist7 ance provided under this subsection are 

8 safe, high-quality systems that comply with 

9 local building and safety codes and stand10 ards; 

11 (iv) the provision of assistance under 

12 this subsection establishes and fosters a 

13 partnership between the Federal Govern14 ment and grant-eligible households and 

15 loan-eligible entities, resulting in efficient 

16 development of solar installations with— 

17 (I) minimal governmental inter18 vention; 

19 (II) limited governmental regula20 tion; and 

21 (III) significant involvement by 

22 nonprofit and private entities; 

23 (v) solar projects installed using as24 sistance provided under this subsection— 

25 (I) shall include job training; and 


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1 (II) may include community par2 ticipation in which job trainees and 

3 volunteers assist in the development of 

4 solar projects; 

5 (vi) assistance provided under this 

6 subsection prioritizes development in— 

7 (I) areas with low photovoltaic 

8 penetration; 

9 (II) rural areas; 

10 (III) Indian tribal areas; and 

11 (IV) other underserved areas, in12 cluding Alaskan Native and Appa13 lachian communities; 

14 (vii) solar systems are developed using 

15 assistance provided under this subsection 

16 on a geographically diverse basis among 

17 the grant-eligible households and loan-eligi18 ble entities; and 

19 (viii) to the maximum extent prac20 ticable, solar installation activities for 

21 which assistance is provided under this 

22 section leverage, or connect grant-eligible 

23 households to, federally or locally sub24 sidized weatherization and energy effiVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 ciency efforts that meet or exceed local en2 ergy efficiency standards. 

3 (B) DETERMINATION.—If, at any time, the 

4 Secretary determines that the goals described in 

5 this paragraph cannot be met by providing as6 sistance in accordance with this subsection, the 

7 Secretary shall immediately submit to the ap8 propriate committees of Congress a written no9 tice of that determination, including any pro10 posed changes necessary to achieve the goals 

11 under this paragraph. 

12 (4) COMMUNITY SOLAR FACILITIES.— 

13 (A) IN GENERAL.—A community solar fa14 cility may use a loan provided under this sub15 section only to offset the costs of generation 

16 and provision of solar energy to low-income 

17 households that are subscribers of the commu18 nity solar facility. 

19 (B) TRANSFER AND ASSIGNMENT OF SUB20 SCRIPTIONS.—A subscription to a community 

21 solar facility that receives assistance under this 

22 subsection may be transferred or assigned by 

23 the subscriber to— 

24 (i) any subscriber organization; or 


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1 (ii) any individual or entity who quali2 fies to be a subscriber to that community 

3 solar facility. 

4 (C) TREATMENT.— 

5 (i) IN GENERAL.—No owner, oper6 ator, or subscriber of a community solar 

7 facility that receives assistance under this 

8 subsection shall be subject to regulation by 

9 the Federal Energy Regulatory Commis10 sion solely as a result of an interest in the 

11 community solar facility. 

12 (ii) PRICE OF SUBSCRIPTION.—The 

13 price paid for any subscription to a com14 munity solar facility shall not be subject to 

15 the regulation of any Federal department, 

16 agency, or commission. 

17 (c) NATIONAL COMPETITION.— 

18 (1) IN GENERAL.—The Secretary shall select 

19 grant-eligible households and loan-eligible entities to 

20 receive loans or grants under this section through a 

21 nationwide competitive process, to be established by 

22 the Secretary. 

23 (2) APPLICATIONS.—To be eligible to receive a 

24 loan or grant under this section, a grant-eligible 

25 household or loan-eligible entity shall submit to the 


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1 Secretary an application at such time, in such man2 ner, and containing such information as the Sec3 retary may require. 

4 (3) REQUIREMENTS.—In selecting grant-eligible 

5 households and loan-eligible entities to receive loans 

6 or grants under this section, the Secretary shall, at 

7 a minimum— 

8 (A) require that the grant-eligible house9 hold or loan-eligible entity— 

10 (i) enter into a grant or loan agree11 ment, as applicable, under subsection (d); 

12 and 

13 (ii) has obtained financial commit14 ments (or has demonstrated the capacity 

15 to obtain financial commitments) necessary 

16 to comply with that agreement; 

17 (B) ensure that loans and grants are pro18 vided, and amounts are used, in a manner that 

19 results in geographical diversity throughout the 

20 United States and within States, territories, 

21 and Indian tribal land among photovoltaic solar 

22 electricity generating facilities installed using 

23 the assistance provided under this section; 

24 (C) to the maximum extent practicable, ex25 pand photovoltaic solar energy availability to— 


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1 (i) geographical areas, throughout the 

2 United States and within States, terri3 tories, and Indian tribal land, with— 

4 (I) low photovoltaic solar pene5 tration; or 

6 (II) areas with a higher cost bur7 den with respect to the deployment or 

8 installation of photovoltaic solar elec9 tricity generating facilities; 

10 (ii) rural communities; 

11 (iii) Indian tribes; and 

12 (iv) other underserved areas, including 

13 Appalachian and Alaska Native commu14 nities; 

15 (D) take into account the warranty period 

16 and quality of the applicable photovoltaic solar 

17 electricity generating facility equipment and any 

18 necessary interconnecting equipment; and 

19 (E) ensure all calculations for estimated 

20 household energy savings are based solely on 

21 electricity offsets from the photovoltaic solar 

22 electricity generating facilities. 

23 (d) LOAN AND GRANT AGREEMENTS.— 

24 (1) IN GENERAL.—As a condition of receiving a 

25 loan or grant under this section, a grant-eligible 


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1 household or loan-eligible entity shall enter into a 

2 loan or grant agreement, as applicable, with the Sec3 retary. 

4 (2) REQUIREMENTS.—A loan or grant agree5 ment under this subsection shall— 

6 (A) require the grant-eligible household or 

7 loan-eligible entity— 

8 (i) to use the assistance provided 

9 under this section only in accordance with 

10 this section; 

11 (ii) to install such number of solar 

12 systems with such defined capacity target 

13 (expressed in megawatts) as may be estab14 lished by the Secretary , taking into con15 sideration the costs associated with car16 rying out loan or grant obligations in the 

17 areas in which the solar systems will be de18 veloped; 

19 (iii) to use the assistance in a manner 

20 that leverages other sources of funding 

21 (other than loans or grants under this sec22 tion), including private or public funds, in 

23 developing the solar projects; and 

24 (iv) to establish loan terms, if applica25 ble, that maximize the benefit to the lowVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 income households receiving solar energy 

2 from the loan-eligible entity; 

3 (B) require the Secretary to rescind any 

4 amounts provided to the grant-eligible house5 hold or loan-eligible entity that are not used 

6 during the 2-year period beginning on the date 

7 on which the amounts are initially distributed 

8 to the grant-eligible household or loan-eligible 

9 entity, except in any case in which the grant10 eligible household or loan-eligible entity has 

11 demonstrated to the satisfaction of the Sec12 retary that a longer period, not to exceed 3 

13 years after the date of initial distribution, is 

14 necessary to deliver proposed services; 

15 (C) for a loan provided under this section, 

16 establish— 

17 (i) an interest rate equal to the then18 current cost of funds to the Department of 

19 the Treasury for obligations of comparable 

20 maturity to the loan; and 

21 (ii) a payout time that maximizes the 

22 savings to customers during the effective 

23 period of the agreement; and 


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1 (D) contain such other terms as the Sec2 retary may require to ensure compliance with 

3 the requirements of this section. 

4 (e) USE.—A grant-eligible household or loan-eligible 

5 entity shall use a loan or grant provided under this section 

6 only for the following activities, for the purpose of devel7 oping new photovoltaic solar projects in the United States 

8 for low-income households and individuals who otherwise 

9 would likely be unable to afford or purchase photovoltaic 

10 solar systems: 

11 (1) PHOTOVOLTAIC SOLAR EQUIPMENT AND IN12 STALLATION.—To pay the costs of— 

13 (A) solar equipment, including only photo14 voltaic solar equipment and storage and all 

15 hardware or software components relating to 

16 safely producing, monitoring, and connecting 

17 the system to the electric grid or onsite storage; 

18 and 

19 (B) installation, including all direct labor 

20 associated with installing the photovoltaic solar 

21 equipment. 

22 (2) JOB TRAINING.—To fund onsite job train23 ing and community or volunteer engagement, includ24 ing— 


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1 (A) only job training costs directly associ2 ated with the solar projects funded under this 

3 section; and 

4 (B) job training opportunities that may 

5 cover the full range of the solar value chain, 

6 such as marketing and outreach, customer ac7 quisition, system design, and installation posi8 tions. 

9 (3) DEPLOYMENT SUPPORT.—To fund entities 

10 that have a demonstrated ability, as determined by 

11 the Secretary— 

12 (A) to advise State and local entities re13 garding low-income solar policy, regulatory, and 

14 program design to continue and expand the 

15 work of the entities; 

16 (B) to foster community outreach and edu17 cation regarding the benefits of photovoltaic 

18 solar energy for low-income and disadvantaged 

19 communities; or 

20 (C) to provide apprenticeship program op21 portunities registered and approved by— 

22 (i) the Office of Apprenticeship of the 

23 Department of Labor pursuant to part 29 

24 of title 29, Code of Federal Regulations (or 

25 successor regulations); or 


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1 (ii) a State Apprenticeship Agency 

2 recognized by that Office. 

3 (4) ADMINISTRATION.—To pay the administra4 tive expenses of the grant-eligible household or loan5 eligible entity, including preproject feasibility efforts, 

6 in carrying out the duties of the Secretary associ7 ated with delivering proposed services, subject to the 

8 requirement that not more than 15 percent of the 

9 total amount of the assistance provided to the grant10 eligible household or loan-eligible entity under this 

11 section may be used for administrative expenses. 

12 (f) COMPLIANCE.— 

13 (1) RECORDS AND AUDITS.—During the period 

14 beginning on the date of initial distribution to a 

15 grant-eligible household or loan-eligible entity of a 

16 loan or grant under this section and ending on the 

17 termination date of the loan or grant under sub18 section (g), the grant-eligible household or loan-eligi19 ble entity shall maintain such records and adopt 

20 such administrative practices as the Secretary may 

21 require to ensure compliance with the requirements 

22 of this section and the applicable loan or grant 

23 agreement. 

24 (2) DETERMINATION BY SECRETARY.—If the 

25 Secretary determines that a grant-eligible household 


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1 or loan-eligible entity that receives a grant or loan 

2 under this section has not, during the 2-year period 

3 beginning on the date of initial distribution to the 

4 grant-eligible household or loan-eligible entity of the 

5 assistance (or such longer period as is established 

6 under subsection (d)(2)(B)), substantially fulfilled 

7 the obligations of the grant-eligible household or 

8 loan-eligible entity under the applicable loan or 

9 grant agreement, the Secretary shall— 

10 (A) rescind the balance of any funds dis11 tributed to, but not used by, the grant-eligible 

12 household or loan-eligible entity under this sec13 tion; and 

14 (B) use those amounts to provide other 

15 loans or grants in accordance with this section. 

16 (g) TERMINATION.—The Secretary shall terminate a 

17 loan or grant provided under this section on a determina18 tion that the total amount of the loan or grant (excluding 

19 any interest, fees, and other earnings of the loan or grant) 

20 has been— 

21 (1) fully expended by the grant-eligible house22 hold or loan-eligible entity; or 

23 (2) returned to the Secretary. 

24 (h) REGULATIONS.—Not later than 90 days after the 

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1 gate such regulations as the Secretary determines to be 

2 necessary to carry out this section, to take effect on the 

3 date of promulgation. 

4 (i) FUNDING.—There is authorized to be appro5 priated to the Secretary to carry out this section 

6 $200,000,000 for each of fiscal years 2016 through 2030, 

7 to remain available until expended. 

8 Subtitle J—Local Energy Supply 

9 and Resiliency Act 

10 SEC. 2121. DEFINITIONS. 

11 In this subtitle: 

12 (1) COMBINED HEAT AND POWER SYSTEM.— 

13 The term ‘‘combined heat and power system’’ means 

14 generation of electric energy and heat in a single, in15 tegrated system that meets the efficiency criteria in 

16 clauses (ii) and (iii) of section 48(c)(3)(A) of the In17 ternal Revenue Code of 1986, under which heat that 

18 is conventionally rejected is recovered and used to 

19 meet thermal energy requirements. 

20 (2) DEMAND RESPONSE.—The term ‘‘demand 

21 response’’ means changes in electric usage by elec22 tric utility customers from the normal consumption 

23 patterns of the customers in response to— 

24 (A) changes in the price of electricity over 

25 time; or 


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1 (B) incentive payments designed to induce 

2 lower electricity use at times of high wholesale 

3 market prices or when system reliability is jeop4 ardized. 

5 (3) DISTRIBUTED ENERGY.—The term ‘‘distrib6 uted energy’’ means energy sources and systems 

7 that— 

8 (A) produce electric or thermal energy 

9 close to the point of use using renewable energy 

10 resources or waste thermal energy; 

11 (B) generate electricity using a combined 

12 heat and power system; 

13 (C) distribute electricity in microgrids; 

14 (D) store electric or thermal energy; or 

15 (E) distribute thermal energy or transfer 

16 thermal energy to building heating and cooling 

17 systems through a district energy system. 

18 (4) DISTRICT ENERGY SYSTEM.—The term 

19 ‘‘district energy system’’ means a system that pro20 vides thermal energy to buildings and other energy 

21 consumers from 1 or more plants to individual build22 ings to provide space heating, air conditioning, do23 mestic hot water, industrial process energy, and 

24 other end uses. 


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1 (5) ISLANDING.—The term ‘‘islanding’’ means 

2 a distributed generator or energy storage device con3 tinuing to power a location in the absence of electric 

4 power from the primary source. 

5 (6) LOAN.—The term ‘‘loan’’ has the meaning 

6 given the term ‘‘direct loan’’ in section 502 of the 

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

8 (7) MICROGRID.—The term ‘‘microgrid’’ means 

9 an integrated energy system consisting of inter10 connected loads and distributed energy resources, in11 cluding generators and energy storage devices, with12 in clearly defined electrical boundaries that— 

13 (A) acts as a single controllable entity with 

14 respect to the grid; and 

15 (B) can connect and disconnect from the 

16 grid to operate in both grid-connected mode 

17 and island mode. 

18 (8) RENEWABLE ENERGY SOURCE.—The term 

19 ‘‘renewable energy source’’ includes— 

20 (A) biomass; 

21 (B) geothermal energy; 

22 (C) hydropower; 

23 (D) landfill gas; 

24 (E) municipal solid waste; 


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1 (F) ocean (including tidal, wave, current, 

2 and thermal) energy; 

3 (G) organic waste; 

4 (H) photosynthetic processes; 

5 (I) photovoltaic energy; 

6 (J) solar energy; and 

7 (K) wind. 

8 (9) RENEWABLE THERMAL ENERGY.—The term 

9 ‘‘renewable thermal energy’’ means heating or cool10 ing energy derived from a renewable energy re11 source. 

12 (10) THERMAL ENERGY.—The term ‘‘thermal 

13 energy’’ means— 

14 (A) heating energy in the form of hot 

15 water or steam that is used to provide space 

16 heating, domestic hot water, or process heat; or 

17 (B) cooling energy in the form of chilled 

18 water, ice, or other media that is used to pro19 vide air conditioning, or process cooling. 

20 (11) WASTE THERMAL ENERGY.—The term 

21 ‘‘waste thermal energy’’ means energy that— 

22 (A) is contained in— 

23 (i) exhaust gases, exhaust steam, con24 denser water, jacket cooling heat, or lubri25 cating oil in power generation systems; 


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1 (ii) exhaust heat, hot liquids, or flared 

2 gas from any industrial process; 

3 (iii) waste gas or industrial tail gas 

4 that would otherwise be flared, incinerated, 

5 or vented; 

6 (iv) a pressure drop in any gas, ex7 cluding any pressure drop to a condenser 

8 that subsequently vents the resulting heat; 

9 (v) condenser water from chilled water 

10 or refrigeration plants; or 

11 (vi) any other form of waste energy, 

12 as determined by the Secretary; and 

13 (B)(i) in the case of an existing facility, is 

14 not being used; or 

15 (ii) in the case of a new facility, is not con16 ventionally used in comparable systems. 

17 SEC. 2122. DISTRIBUTED ENERGY LOAN PROGRAM. 

18 (a) LOAN PROGRAM.— 

19 (1) IN GENERAL.—Subject to the provisions of 

20 this subsection and subsections (b) and (c), the Sec21 retary shall establish a program to provide to eligible 

22 entities— 

23 (A) loans for the deployment of distributed 

24 energy systems in a specific project; and 


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1 (B) loans to provide funding for programs 

2 to finance the deployment of multiple distrib3 uted energy systems through a revolving loan 

4 fund, credit enhancement program, or other fi5 nancial assistance program. 

6 (2) ELIGIBILITY.—Entities eligible to receive a 

7 loan under paragraph (1) include— 

8 (A) a State, territory, or possession of the 

9 United States; 

10 (B) a State energy office; 

11 (C) a tribal organization (as defined in sec12 tion 4 of the Indian Self-Determination and 

13 Education Assistance Act (25 U.S.C. 450b)); 

14 (D) an institution of higher education (as 

15 defined in section 101 of the Higher Education 

16 Act of 1965 (20 U.S.C. 1001)); and 

17 (E) an electric utility, including— 

18 (i) a rural electric cooperative; 

19 (ii) a municipally owned electric util20 ity; and 

21 (iii) an investor-owned utility. 

22 (3) SELECTION REQUIREMENTS.—In selecting 

23 eligible entities to receive loans under this section, 

24 the Secretary shall, to the maximum extent prac25 ticable, ensure— 


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1 (A) regional diversity among eligible enti2 ties to receive loans under this section, includ3 ing participation by rural States and small 

4 States; and 

5 (B) that specific projects selected for 

6 loans— 

7 (i) expand on the existing technology 

8 deployment program of the Department of 

9 Energy; and 

10 (ii) are designed to achieve 1 or more 

11 of the objectives described in paragraph 

12 (4). 

13 (4) OBJECTIVES.—Each deployment selected 

14 for a loan under paragraph (1) shall include 1 or 

15 more of the following objectives: 

16 (A) Improved security and resiliency of en17 ergy supply in the event of disruptions caused 

18 by extreme weather events, grid equipment or 

19 software failure, or terrorist acts. 

20 (B) Implementation of distributed energy 

21 in order to increase use of local renewable en22 ergy resources and waste thermal energy 

23 sources. 

24 (C) Enhanced feasibility of microgrids, de25 mand response, or islanding; 


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1 (D) Enhanced management of peak loads 

2 for consumers and the grid. 

3 (E) Enhanced reliability in rural areas, in4 cluding high energy cost rural areas. 

5 (5) RESTRICTION ON USE OF FUNDS.—Any eli6 gible entity that receives a loan under paragraph (1) 

7 may only use the loan to fund programs relating to 

8 the deployment of distributed energy systems. 

9 (b) LOAN TERMS AND CONDITIONS.— 

10 (1) TERMS AND CONDITIONS.—Notwithstanding 

11 any other provision of law, in providing a loan under 

12 this section, the Secretary shall provide the loan on 

13 such terms and conditions as the Secretary deter14 mines, after consultation with the Secretary of the 

15 Treasury, in accordance with this section. 

16 (2) SPECIFIC APPROPRIATION.—No loan shall 

17 be made unless an appropriation for the full amount 

18 of the loan has been specifically provided for that 

19 purpose. 

20 (3) REPAYMENT.—No loan shall be made un21 less the Secretary determines that there is reason22 able prospect of repayment of the principal and in23 terest by the borrower of the loan. 

24 (4) INTEREST RATE.—A loan provided under 

25 this section shall bear interest at a fixed rate that 


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1 is equal or approximately equal, in the determination 

2 of the Secretary, to the interest rate for Treasury 

3 securities of comparable maturity. 

4 (5) TERM.—The term of the loan shall require 

5 full repayment over a period not to exceed the lesser 

6 of— 

7 (A) 20 years; or 

8 (B) 90 percent of the projected useful life 

9 of the physical asset to be financed by the loan 

10 (as determined by the Secretary). 

11 (6) USE OF PAYMENTS.—Payments of principal 

12 and interest on the loan shall— 

13 (A) be retained by the Secretary to support 

14 energy research and development activities; and 

15 (B) remain available until expended, sub16 ject to such conditions as are contained in an17 nual appropriations Acts. 

18 (7) NO PENALTY ON EARLY REPAYMENT.—The 

19 Secretary may not assess any penalty for early re20 payment of a loan provided under this section. 

21 (8) RETURN OF UNUSED PORTION.—In order to 

22 receive a loan under this section, an eligible entity 

23 shall agree to return to the general fund of the 

24 Treasury any portion of the loan amount that is un25 used by the eligible entity within a reasonable period 


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1 of time after the date of the disbursement of the 

2 loan, as determined by the Secretary. 

3 (9) COMPARABLE WAGE RATES.—Each laborer 

4 and mechanic employed by a contractor or subcon5 tractor in performance of construction work fi6 nanced, in whole or in part, by the loan shall be paid 

7 wages at rates not less than the rates prevailing on 

8 similar construction in the locality as determined by 

9 the Secretary of Labor in accordance with sub10 chapter IV of chapter 31 of title 40, United States 

11 Code. 

12 (c) RULES AND PROCEDURES; DISBURSEMENT OF

13 LOANS.— 

14 (1) RULES AND PROCEDURES.—Not later than 

15 180 days after the date of enactment of this Act, the 

16 Secretary shall adopt rules and procedures for car17 rying out the loan program under subsection (a). 

18 (2) DISBURSEMENT OF LOANS.—Not later than 

19 1 year after the date on which the rules and proce20 dures under paragraph (1) are established, the Sec21 retary shall disburse the initial loans provided under 

22 this section. 

23 (d) REPORTS.—Not later than 2 years after the date 

24 of receipt of the loan, and annually thereafter for the term 

25 of the loan, an eligible entity that receives a loan under 


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1 this section shall submit to the Secretary a report describ2 ing the performance of each program and activity carried 

3 out using the loan, including itemized loan performance 

4 data. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this section 

7 such sums as are necessary. 

8 SEC. 2123. TECHNICAL ASSISTANCE AND GRANT PROGRAM. 

9 (a) ESTABLISHMENT.— 

10 (1) IN GENERAL.—The Secretary shall establish 

11 a technical assistance and grant program (referred 

12 to in this section as the ‘‘program’’)— 

13 (A) to disseminate information and provide 

14 technical assistance directly to eligible entities 

15 so the eligible entities can identify, evaluate, 

16 plan, and design distributed energy systems; 

17 and 

18 (B) to make grants to eligible entities so 

19 that the eligible entities may contract to obtain 

20 technical assistance to identify, evaluate, plan, 

21 and design distributed energy systems. 

22 (2) TECHNICAL ASSISTANCE.—The technical 

23 assistance described in paragraph (1) shall include 

24 assistance with 1 or more of the following activities 

25 relating to distributed energy systems: 


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1 (A) Identification of opportunities to use 

2 distributed energy systems. 

3 (B) Assessment of technical and economic 

4 characteristics. 

5 (C) Utility interconnection. 

6 (D) Permitting and siting issues. 

7 (E) Business planning and financial anal8 ysis. 

9 (F) Engineering design. 

10 (3) INFORMATION DISSEMINATION.—The infor11 mation disseminated under paragraph (1)(A) shall 

12 include— 

13 (A) information relating to the topics de14 scribed in paragraph (2), including case studies 

15 of successful examples; 

16 (B) computer software and databases for 

17 assessment, design, and operation and mainte18 nance of distributed energy systems; and 

19 (C) public databases that track the oper20 ation and deployment of existing and planned 

21 distributed energy systems. 

22 (b) ELIGIBILITY.—Any nonprofit or for-profit entity 

23 shall be eligible to receive technical assistance and grants 

24 under the program. 

25 (c) APPLICATIONS.— 


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1 (1) IN GENERAL.—An eligible entity desiring 

2 technical assistance or grants under the program 

3 shall submit to the Secretary an application at such 

4 time, in such manner, and containing such informa5 tion as the Secretary may require. 

6 (2) APPLICATION PROCESS.—The Secretary 

7 shall seek applications for technical assistance and 

8 grants under the program— 

9 (A) on a competitive basis; and 

10 (B) on a periodic basis, but not less fre11 quently than once every 12 months. 

12 (3) PRIORITIES.—In selecting eligible entities 

13 for technical assistance and grants under the pro14 gram, the Secretary shall give priority to eligible en15 tities with projects that have the greatest potential 

16 for— 

17 (A) facilitating the use of renewable energy 

18 resources; 

19 (B) strengthening the reliability and resil20 iency of energy infrastructure to the impact of 

21 extreme weather events, power grid failures, 

22 and interruptions in supply of fossil fuels; 

23 (C) improving the feasibility of microgrids 

24 or islanding, particularly in rural areas, includ25 ing high energy cost rural areas; 


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1 (D) minimizing environmental impact, in2 cluding regulated air pollutants and greenhouse 

3 gas emissions; and 

4 (E) maximizing local job creation. 

5 (d) GRANTS.—On application by an eligible entity, 

6 the Secretary may award grants to the eligible entity to 

7 provide funds to cover not more than— 

8 (1) 100 percent of the costs of the initial as9 sessment to identify opportunities; 

10 (2) 75 percent of the cost of feasibility studies 

11 to assess the potential for the implementation; 

12 (3) 60 percent of the cost of guidance on over13 coming barriers to implementation, including finan14 cial, contracting, siting, and permitting issues; and 

15 (4) 45 percent of the cost of detailed engineer16 ing. 

17 (e) RULES AND PROCEDURES.— 

18 (1) RULES.—Not later than 180 days after the 

19 date of enactment of this Act, the Secretary shall 

20 adopt rules and procedures for carrying out the pro21 gram. 

22 (2) GRANTS.—Not later than 120 days after 

23 the date of issuance of the rules and procedures for 

24 the program, the Secretary shall issue grants under 

25 this subtitle. 


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1 (f) REPORTS.—The Secretary shall submit to Con2 gress and make available to the public— 

3 (1) not less frequently than once every 2 years, 

4 a report describing the performance of the program 

5 under this section, including a synthesis and analysis 

6 of the information provided in the reports submitted 

7 to the Secretary under section 2122(d); and 

8 (2) on termination of the program under this 

9 section, an assessment of the success of, and edu10 cation provided by, the measures carried out by eli11 gible entities during the term of the program. 

12 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $250,000,000 for the period of fiscal years 2016 through 

15 2020, to remain available until expended. 

16 Subtitle K—Geothermal Energy 

17 Opportunities 

18 SEC. 2131. NATIONAL GOALS FOR PRODUCTION AND SITE 

19 IDENTIFICATION. 

20 It is the sense of Congress that, not later than 10 

21 years after the date of enactment of this Act— 

22 (1) the Secretary of the Interior should seek to 

23 have approved more than 15,000 megawatts of new 

24 geothermal energy capacity on public land across a 


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1 geographically diverse set of States using the full 

2 range of available technologies; and 

3 (2) the Director of the Geological Survey and 

4 the Secretary of Energy should identify sites capable 

5 of producing a total of 50,000 megawatts of geo6 thermal power, using the full range of available tech7 nologies. 

8 SEC. 2132. PRIORITY AREAS FOR DEVELOPMENT ON FED9 ERAL LAND. 

10 The Director of the Bureau of Land Management, 

11 in consultation with other appropriate Federal officials, 

12 shall— 

13 (1) identify high-priority areas for new geo14 thermal development; and 

15 (2) take any actions the Director determines 

16 necessary to facilitate that development, consistent 

17 with applicable laws. 

18 SEC. 2133. FACILITATION OF COPRODUCTION OF GEO19 THERMAL ENERGY ON OIL AND GAS LEASES. 

20 Section 4(b) of the Geothermal Steam Act of 1970 

21 (30 U.S.C. 1003(b)) is amended by adding at the end the 

22 following: 

23 ‘‘(4) LAND SUBJECT TO OIL AND GAS LEASE.— 

24 Land under an oil and gas lease issued pursuant to 

25 the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 


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1 the Mineral Leasing Act for Acquired Lands (30 

2 U.S.C. 351 et seq.) that is subject to an approved 

3 application for permit to drill and from which oil 

4 and gas production is occurring may be available for 

5 noncompetitive leasing under this section to the 

6 holder of the oil and gas lease— 

7 ‘‘(A) on a determination that— 

8 ‘‘(i) geothermal energy will be pro9 duced from a well producing or capable of 

10 producing oil and gas; and 

11 ‘‘(ii) national energy security will be 

12 improved by the issuance of such a lease; 

13 and 

14 ‘‘(B) to provide for the coproduction of 

15 geothermal energy with oil and gas.’’. 

16 SEC. 2134. COST-SHARED EXPLORATION. 

17 (a) IN GENERAL.—To promote the goals described 

18 in section 2131, the Secretary may conduct a federally 

19 funded program of cost-shared drilling with industry part20 ners— 

21 (1) to explore and document new geothermal re22 sources in the United States; and 

23 (2) to develop improved tools and methods for 

24 geothermal resource identification and extraction, 

25 with the goal of achieving material reductions in the 


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1 cost of exploration with a corresponding increase in 

2 the likelihood of drilling success. 

3 (b) GRANTS.— 

4 (1) IN GENERAL.—To carry out the program 

5 described in subsection (a), the Secretary may award 

6 cost-share grants on a competitive and merit basis 

7 to eligible applicants to support exploration drilling 

8 and related activities. 

9 (2) PROJECT CRITERIA.—In selecting appli10 cants to receive grants under paragraph (1), the 

11 Secretary shall— 

12 (A) give preference to applicants proposing 

13 projects located in a variety of geological and 

14 geographical settings with previously unex15 plored, underexplored, or unproven geothermal 

16 resources; and 

17 (B) consider— 

18 (i) the potential that the unproven 

19 geothermal resources would be explored 

20 and developed under the proposed project; 

21 (ii) the expertise and experience of an 

22 applicant in developing geothermal re23 sources; and 


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1 (iii) the contribution the proposed 

2 project would make toward meeting the 

3 goals described in section 2131. 

4 (c) DATA SHARING.— 

5 (1) IN GENERAL.—Data from all exploratory 

6 wells that are carried out under the program de7 scribed in subsection (a) shall be provided to the 

8 Secretary and the Secretary of the Interior for— 

9 (A) use in mapping national geothermal 

10 resources; and 

11 (B) other purposes, including— 

12 (i) subsurface geological data; 

13 (ii) metadata; 

14 (iii) borehole temperature data; and 

15 (iv) inclusion in the National Geo16 thermal Data System of the Department. 

17 (2) SHARING OF CONFIDENTIAL DATA.—Not 

18 later than 2 years after the date of enactment of 

19 this Act, confidential data from all exploratory wells 

20 that are carried out under the program described in 

21 subsection (a) shall be provided to the Secretary and 

22 the Secretary of the Interior for the purposes de23 scribed in subparagraphs (A) and (B) of paragraph 

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1 mined by the Secretary and the Secretary of the In2 terior. 

3 SEC. 2135. USE OF GEOTHERMAL LEASE REVENUES. 

4 (a) AMOUNTS DEPOSITED.—Notwithstanding any 

5 other provision of law, beginning in the first full fiscal year 

6 after the date of enactment of this Act, any amounts re7 ceived by the United States as rentals, royalties, and other 

8 payments required under leases pursuant to the Geo9 thermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) (ex10 cluding funds required to be paid to State and county gov11 ernments) and from new geothermal leases issued after 

12 the date of enactment of this Act shall be deposited into 

13 a separate account in the Treasury. 

14 (b) USE OF DEPOSITS.—Amounts deposited under 

15 subsection (a) shall be available to the Secretary for ex16 penditure, without further appropriation or fiscal year lim17 itation, to carry out section 2134. 

18 (c) TRANSFER OF FUNDS.—To promote the goals de19 scribed in section 2131, the Secretary may authorize the 

20 expenditure or transfer of any funds that are necessary 

21 to other cooperating Federal agencies. 


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1 SEC. 2136. NONCOMPETITIVE LEASING OF ADJOINING 

2 AREAS FOR DEVELOPMENT OF GEOTHERMAL 

3 RESOURCES. 

4 Section 4(b) of the Geothermal Steam Act of 1970 

5 (30 U.S.C. 1003(b)) (as amended by section 2133) is 

6 amended by adding at the end the following: 

7 ‘‘(5) ADJOINING LAND.— 

8 ‘‘(A) DEFINITIONS.—In this paragraph: 

9 ‘‘(i) FAIR MARKET VALUE PER

10 ACRE.—The term ‘fair market value per 

11 acre’ means a dollar amount per acre 

12 that— 

13 ‘‘(I) except as provided in this 

14 clause, shall be equal to the market 

15 value per acre (taking into account 

16 the determination under subparagraph 

17 (B)(iii) regarding a valid discovery on 

18 the adjoining land), as determined by 

19 the Secretary under regulations issued 

20 under this paragraph; 

21 ‘‘(II) shall be determined by the 

22 Secretary with respect to a lease 

23 under this paragraph, by not later 

24 than the end of the 180-day period 

25 beginning on the date the Secretary 


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1 receives an application for the lease; 

2 and 

3 ‘‘(III) shall be not less than the 

4 greater of— 

5 ‘‘(aa) 4 times the median 

6 amount paid per acre for all land 

7 leased under this Act during the 

8 preceding year; and 

9 ‘‘(bb) $50. 

10 ‘‘(ii) INDUSTRY STANDARDS.—The 

11 term ‘industry standards’ means the stand12 ards by which a qualified geothermal pro13 fessional assesses whether downhole or 

14 flowing temperature measurements with 

15 indications of permeability are sufficient to 

16 produce energy from geothermal resources, 

17 as determined through flow or injection 

18 testing or measurement of lost circulation 

19 while drilling. 

20 ‘‘(iii) QUALIFIED FEDERAL LAND.— 

21 The term ‘qualified Federal land’ means 

22 land that is otherwise available for leasing 

23 under this Act. 

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1 thermal professional’ means an individual 

2 who is an engineer or geoscientist in good 

3 professional standing with at least 5 years 

4 of experience in geothermal exploration, 

5 development, or project assessment. 

6 ‘‘(v) QUALIFIED LESSEE.—The term 

7 ‘qualified lessee’ means a person that is el8 igible to hold a geothermal lease under this 

9 Act (including applicable regulations). 

10 ‘‘(vi) VALID DISCOVERY.—The term 

11 ‘valid discovery’ means a discovery of a 

12 geothermal resource by a new or existing 

13 slim hole or production well, that exhibits 

14 downhole or flowing temperature measure15 ments with indications of permeability that 

16 are sufficient to meet industry standards. 

17 ‘‘(B) AUTHORITY.—An area of qualified 

18 Federal land that adjoins other land for which 

19 a qualified lessee holds a legal right to develop 

20 geothermal resources may be available for a 

21 noncompetitive lease under this section to the 

22 qualified lessee at the fair market value per 

23 acre, if— 

24 ‘‘(i) the area of qualified Federal 

25 land— 


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1 ‘‘(I) consists of not less than 1 

2 acre and not more than 640 acres; 

3 and 

4 ‘‘(II) is not already leased under 

5 this Act or nominated to be leased 

6 under subsection (a); 

7 ‘‘(ii) the qualified lessee has not pre8 viously received a noncompetitive lease 

9 under this paragraph in connection with 

10 the valid discovery for which data has been 

11 submitted under clause (iii)(I); and 

12 ‘‘(iii) sufficient geological and other 

13 technical data prepared by a qualified geo14 thermal professional has been submitted by 

15 the qualified lessee to the applicable Fed16 eral land management agency that would 

17 lead individuals who are experienced in the 

18 subject matter to believe that— 

19 ‘‘(I) there is a valid discovery of 

20 geothermal resources on the land for 

21 which the qualified lessee holds the 

22 legal right to develop geothermal re23 sources; and 

24 ‘‘(II) that thermal feature ex25 tends into the adjoining areas. 


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1 ‘‘(C) DETERMINATION OF FAIR MARKET

2 VALUE.— 

3 ‘‘(i) IN GENERAL.—The Secretary 

4 shall— 

5 ‘‘(I) publish a notice of any re6 quest to lease land under this para7 graph; 

8 ‘‘(II) determine fair market value 

9 for purposes of this paragraph in ac10 cordance with procedures for making 

11 those determinations that are estab12 lished by regulations issued by the 

13 Secretary; 

14 ‘‘(III) provide to a qualified les15 see and publish, with an opportunity 

16 for public comment for a period of 30 

17 days, any proposed determination 

18 under this subparagraph of the fair 

19 market value of an area that the 

20 qualified lessee seeks to lease under 

21 this paragraph; and 

22 ‘‘(IV) provide to the qualified les23 see and any adversely affected party 

24 the opportunity to appeal the final de25 termination of fair market value in an 


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1 administrative proceeding before the 

2 applicable Federal land management 

3 agency, in accordance with applicable 

4 law (including regulations). 

5 ‘‘(ii) LIMITATION ON NOMINATION.— 

6 After publication of a notice of request to 

7 lease land under this paragraph, the Sec8 retary may not accept under subsection (a) 

9 any nomination of the land for leasing un10 less the request has been denied or with11 drawn. 

12 ‘‘(iii) ANNUAL RENTAL.—For pur13 poses of section 5(a)(3), a lease awarded 

14 under this paragraph shall be considered a 

15 lease awarded in a competitive lease sale. 

16 ‘‘(D) REGULATIONS.—Not later than 270 

17 days after the date of enactment of this para18 graph, the Secretary shall issue regulations to 

19 carry out this paragraph.’’. 

20 SEC. 2137. LARGE-SCALE GEOTHERMAL ENERGY. 

21 Title VI of the Energy Independence and Security 

22 Act of 2007 is amended by inserting after section 616 (42 

23 U.S.C. 17195) the following: 

24 ‘‘SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY. 

25 ‘‘(a) FINDINGS.—Congress finds that— 


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1 ‘‘(1) the Geothermal Technologies Program of 

2 the Office of Energy Efficiency and Renewable En3 ergy of the Department has included a focus on di4 rect use of geothermal energy in the low-temperature 

5 geothermal energy subprogram (including in the de6 velopment of a research and development plan for 

7 the program); 

8 ‘‘(2) the Building Technologies Program of the 

9 Office of Energy Efficiency and Renewable Energy 

10 of the Department— 

11 ‘‘(A) is focused on the energy demand and 

12 energy efficiency of buildings; and 

13 ‘‘(B) includes geothermal heat pumps as a 

14 component technology in the residential and 

15 commercial deployment activities of the pro16 gram; and 

17 ‘‘(3) geothermal heat pumps and direct use of 

18 geothermal energy, especially in large-scale applica19 tions, can make a significant contribution to the use 

20 of renewable energy but are underrepresented in re21 search, development, demonstration, and commer22 cialization. 

23 ‘‘(b) PURPOSES.—The purposes of this section are— 


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1 ‘‘(1) to improve the components, processes, and 

2 systems used for geothermal heat pumps and the di3 rect use of geothermal energy; and 

4 ‘‘(2) to increase the energy efficiency, lower the 

5 cost, increase the use, and improve and demonstrate 

6 the applicability of geothermal heat pumps to, and 

7 the direct use of geothermal energy in, large build8 ings, commercial districts, residential communities, 

9 and large municipal, agricultural, or industrial 

10 projects. 

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

12 ‘‘(1) DIRECT USE OF GEOTHERMAL ENERGY.— 

13 The term ‘direct use of geothermal energy’ means 

14 systems that use water that is at a temperature be15 tween approximately 38 degrees Celsius and 149 de16 grees Celsius directly or through a heat exchanger to 

17 provide— 

18 ‘‘(A) heating to buildings; or 

19 ‘‘(B) heat required for industrial processes, 

20 agriculture, aquaculture, and other facilities. 

21 ‘‘(2) GEOTHERMAL HEAT PUMP.—The term 

22 ‘geothermal heat pump’ means a system that pro23 vides heating and cooling by exchanging heat from 

24 shallow ground or surface water using— 


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1 ‘‘(A) a closed loop system, which transfers 

2 heat by way of buried or immersed pipes that 

3 contain a mix of water and working fluid; or 

4 ‘‘(B) an open loop system, which circulates 

5 ground or surface water directly into the build6 ing and returns the water to the same aquifer 

7 or surface water source. 

8 ‘‘(3) LARGE-SCALE APPLICATION.—The term 

9 ‘large-scale application’ means an application for 

10 space or process heating or cooling for large entities 

11 with a name-plate capacity, expected resource, or 

12 rating of 10 or more megawatts, such as a large 

13 building, commercial district, residential community, 

14 or a large municipal, agricultural, or industrial 

15 project. 

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

17 the Secretary of Energy, acting through the Assist18 ant Secretary for Energy Efficiency and Renewable 

19 Energy. 

20 ‘‘(d) PROGRAM.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall estab22 lish a program of research, development, and dem23 onstration for geothermal heat pumps and the direct 

24 use of geothermal energy. 


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1 ‘‘(2) AREAS.—The program may include re2 search, development, demonstration, and commercial 

3 application of— 

4 ‘‘(A) geothermal ground loop efficiency im5 provements through more efficient heat transfer 

6 fluids; 

7 ‘‘(B) geothermal ground loop efficiency im8 provements through more efficient thermal 

9 grouts for wells and trenches; 

10 ‘‘(C) geothermal ground loop installation 

11 cost reduction through— 

12 ‘‘(i) improved drilling methods; 

13 ‘‘(ii) improvements in drilling equip14 ment; 

15 ‘‘(iii) improvements in design method16 ology and energy analysis procedures; and 

17 ‘‘(iv) improved methods for deter18 mination of ground thermal properties and 

19 ground temperatures; 

20 ‘‘(D) installing geothermal ground loops 

21 near the foundation walls of new construction 

22 to take advantage of existing structures; 

23 ‘‘(E) using gray or black wastewater as a 

24 method of heat exchange; 


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1 ‘‘(F) improving geothermal heat pump sys2 tem economics through integration of geo3 thermal systems with other building systems, 

4 including providing hot and cold water and re5 jecting or circulating industrial process heat 

6 through refrigeration heat rejection and waste 

7 heat recovery; 

8 ‘‘(G) advanced geothermal systems using 

9 variable pumping rates to increase efficiency; 

10 ‘‘(H) geothermal heat pump efficiency im11 provements; 

12 ‘‘(I) use of hot water found in mines and 

13 mine shafts and other surface waters as the 

14 heat exchange medium; 

15 ‘‘(J) heating of districts, neighborhoods, 

16 communities, large commercial or public build17 ings (including office, retail, educational, gov18 ernment, and institutional buildings and multi19 family residential buildings and campuses), and 

20 industrial and manufacturing facilities; 

21 ‘‘(K) geothermal system integration with 

22 solar thermal water heating or cool roofs and 

23 solar-regenerated desiccants to balance loads 

24 and use building hot water to store geothermal 

25 energy; 


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1 ‘‘(L) use of hot water coproduced from oil 

2 and gas recovery; 

3 ‘‘(M) use of water sources at a tempera4 ture of less than 150 degrees Celsius for direct 

5 use; 

6 ‘‘(N) system integration of direct use with 

7 geothermal electricity production; and 

8 ‘‘(O) coproduction of heat and power, in9 cluding on-site use. 

10 ‘‘(3) ENVIRONMENTAL IMPACTS.—In carrying 

11 out the program, the Secretary shall identify and 

12 mitigate potential environmental impacts in accord13 ance with section 614(c). 

14 ‘‘(e) GRANTS.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall make 

16 grants available to State and local governments, in17 stitutions of higher education, nonprofit entities, 

18 utilities, and for-profit companies (including manu19 facturers of heat-pump and direct-use components 

20 and systems) to promote the development of geo21 thermal heat pumps and the direct use of geo22 thermal energy. 

23 ‘‘(2) PRIORITY.—In making grants under this 

24 subsection, the Secretary shall give priority to pro25 posals that apply to large buildings (including office, 


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1 retail, educational, government, institutional, and 

2 multifamily residential buildings and campuses and 

3 industrial and manufacturing facilities), commercial 

4 districts, and residential communities. 

5 ‘‘(3) NATIONAL SOLICITATION.—Not later than 

6 180 days after the date of enactment of this section, 

7 the Secretary shall conduct a national solicitation for 

8 applications for grants under this section. 

9 ‘‘(f) REPORTS.— 

10 ‘‘(1) IN GENERAL.—Not later than 2 years 

11 after the date of enactment of this section and annu12 ally thereafter, the Secretary shall submit to the 

13 Committee on Energy and Natural Resources of the 

14 Senate and the Committee on Science, Space, and 

15 Technology of the House of Representatives a report 

16 on progress made and results obtained under this 

17 section to develop geothermal heat pumps and direct 

18 use of geothermal energy. 

19 ‘‘(2) AREAS.—Each of the reports required 

20 under this subsection shall include— 

21 ‘‘(A) an analysis of progress made in each 

22 of the areas described in subsection (d)(2); and 

23 ‘‘(B)(i) a description of any relevant rec24 ommendations made during a review of the pro25 gram; and 


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1 ‘‘(ii) any plans to address the rec2 ommendations under clause (i).’’. 

3 SEC. 2138. REPORT TO CONGRESS. 

4 Not later than 3 years after the date of enactment 

5 of this Act and not less frequently than once every 5 years 

6 thereafter, the Secretary and the Secretary of the Interior 

7 shall submit to the appropriate committees of Congress 

8 a report describing the progress made towards achieving 

9 the goals described in section 2131. 

10 SEC. 2139. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated to carry out 

12 this subtitle such sums as are necessary. 

13 Subtitle L—Clean Coal Technology 

14 Research 

15 SEC. 2141. FOSSIL ENERGY. 

16 Section 961(a) of the Energy Policy Act of 2005 (42 

17 U.S.C. 16291(a)) is amended by adding at the end the 

18 following: 

19 ‘‘(8) Improving the conversion, use, and storage 

20 of carbon dioxide produced from fossil fuels.’’. 


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1 Subtitle M—Long-term Contracts 

2 SEC. 2151. CONTRACTS FOR FEDERAL PURCHASES OF EN3 ERGY. 

4 Part 3 of title V of the National Energy Conservation 

5 Policy Act is amended by adding after section 553 (42 

6 U.S.C. 8259b) the following: 

7 ‘‘SEC. 554. LONG-TERM CONTRACTS FOR ENERGY. 

8 ‘‘(a) IN GENERAL.—Notwithstanding section 

9 501(b)(1)(B) of title 40, United States Code, a contract 

10 for the acquisition of renewable energy or energy from co11 generation facilities for the Federal Government may be 

12 made for a period not to exceed 30 years. 

13 ‘‘(b) STANDARDIZED ENERGY PURCHASE AGREE14 MENT.—Not later than 90 days after the date of enact15 ment of this section, the Secretary, acting through the 

16 Federal Energy Management Program, shall publish a 

17 standardized energy purchase agreement setting forth 

18 commercial terms and conditions that agencies may use 

19 to acquire renewable energy or energy from cogeneration 

20 facilities. 

21 ‘‘(c) TECHNICAL ASSISTANCE.—The Secretary shall 

22 provide technical assistance to assist agencies in imple23 menting this section.’’. 


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1 Subtitle N—Promoting Renewable 

2 Energy With Shared Solar 

3 SEC. 2161. PROVISION OF INTERCONNECTION SERVICE AND 

4 NET BILLING SERVICE FOR COMMUNITY 

5 SOLAR FACILITIES. 

6 (a) IN GENERAL.—Section 111(d) of the Public Util7 ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 

8 (as amended by section 2020(a)) is amended by adding 

9 at the end the following: 

10 ‘‘(21) COMMUNITY SOLAR FACILITIES.— 

11 ‘‘(A) DEFINITIONS.—In this paragraph: 

12 ‘‘(i) COMMUNITY SOLAR FACILITY.— 

13 The term ‘community solar facility’ means 

14 a solar photovoltaic system that— 

15 ‘‘(I) allocates electricity to mul16 tiple individual electric consumers of 

17 an electric utility; 

18 ‘‘(II) has a nameplate rating of 2 

19 megawatts or less; and 

20 ‘‘(III) is— 

21 ‘‘(aa) owned by the electric 

22 utility, jointly owned, or third23 party-owned; 


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1 ‘‘(bb) connected to a local 

2 distribution facility of the electric 

3 utility; and 

4 ‘‘(cc) located on or off the 

5 property of a consumer of the 

6 electricity. 

7 ‘‘(ii) INTERCONNECTION SERVICE.— 

8 The term ‘interconnection service’ means a 

9 service provided by an electric utility to an 

10 electric consumer, in accordance with the 

11 standards described in paragraph (15), 

12 through which a community solar facility is 

13 connected to an applicable local distribu14 tion facility. 

15 ‘‘(iii) NET BILLING SERVICE.—The 

16 term ‘net billing service’ means a service 

17 provided by an electric utility to an electric 

18 consumer through which electric energy 

19 generated for that electric consumer from 

20 a community solar facility may be used to 

21 offset electric energy provided by the elec22 tric utility to the electric consumer during 

23 the applicable billing period. 

24 ‘‘(B) REQUIREMENT.—On receipt of a re25 quest of an electric consumer served by the 


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1 electric utility, each electric utility shall make 

2 available to the electric consumer interconnec3 tion service and net billing service for a commu4 nity solar facility.’’. 

5 (b) COMPLIANCE.— 

6 (1) TIME LIMITATIONS.—Section 112(b) of the 

7 Public Utility Regulatory Policies Act of 1978 (16 

8 U.S.C. 2622(b)) (as amended by section 2020(b)(1)) 

9 is amended by adding at the end the following: 

10 ‘‘(8)(A) Not later than 1 year after the date of 

11 enactment of this paragraph, each State regulatory 

12 authority (with respect to each electric utility for 

13 which the State has ratemaking authority) and each 

14 nonregulated utility shall commence consideration 

15 under section 111, or set a hearing date for consid16 eration, with respect to the standard established by 

17 paragraph (21) of section 111(d). 

18 ‘‘(B) Not later than 2 years after the date of 

19 enactment of this paragraph, each State regulatory 

20 authority (with respect to each electric utility for 

21 which the State has ratemaking authority), and each 

22 nonregulated electric utility shall complete the con23 sideration and make the determination under section 

24 111 with respect to the standard established by 

25 paragraph (21) of section 111(d).’’. 


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1 (2) FAILURE TO COMPLY.— 

2 (A) IN GENERAL.—Section 112(c) of the 

3 Public Utility Regulatory Policies Act of 1978 

4 (16 U.S.C. 2622(c)) (as amended by section 

5 2020(b)(2)) is amended— 

6 (i) by striking ‘‘such paragraph (14)’’ 

7 and all that follows through ‘‘paragraphs 

8 (16)’’ and inserting ‘‘such paragraph (14). 

9 In the case of the standard established by 

10 paragraph (15) of section 111(d), the ref11 erence contained in this subsection to the 

12 date of enactment of this Act shall be 

13 deemed to be a reference to the date of en14 actment of that paragraph (15). In the 

15 case of the standards established by para16 graphs (16)’’; and 

17 (ii) by adding at the end the fol18 lowing: ‘‘In the case of the standard estab19 lished by paragraph (21) of section 111(d), 

20 the reference contained in this subsection 

21 to the date of enactment of this Act shall 

22 be deemed to be a reference to the date of 

23 enactment of that paragraph (21).’’. 

24 (B) TECHNICAL CORRECTION.— 


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1 (i) IN GENERAL.—Section 1254(b) of 

2 the Energy Policy Act of 2005 (Public 

3 Law 109–58; 119 Stat. 971) is amended 

4 by striking paragraph (2). 

5 (ii) TREATMENT.—The amendment 

6 made by paragraph (2) of section 1254(b) 

7 of the Energy Policy Act of 2005 (Public 

8 Law 109–58; 119 Stat. 971) (as in effect 

9 on the day before the date of enactment of 

10 this Act) is void, and section 112(d) of the 

11 Public Utility Regulatory Policies Act of 

12 1978 (16 U.S.C. 2622(d)) shall be in ef13 fect as if those amendments had not been 

14 enacted. 

15 (3) PRIOR STATE ACTIONS.— 

16 (A) IN GENERAL.—Section 112 of the 

17 Public Utility Regulatory Policies Act of 1978 

18 (16 U.S.C. 2622) is amended by adding at the 

19 end the following: 

20 ‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and 

21 (c) shall not apply to the standard established by para22 graph (21) of section 111(d) in the case of any electric 

23 utility in a State if, before the date of enactment of this 

24 subsection— 


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1 ‘‘(1) the State has implemented for the electric 

2 utility the standard (or a comparable standard); 

3 ‘‘(2) the State regulatory authority for the 

4 State or the relevant nonregulated electric utility has 

5 conducted a proceeding to consider implementation 

6 of the standard (or a comparable standard) for the 

7 electric utility; or 

8 ‘‘(3) the State legislature has voted on the im9 plementation of the standard (or a comparable 

10 standard) for the electric utility.’’. 

11 (B) CROSS-REFERENCE.—Section 124 of 

12 the Public Utility Regulatory Policies Act of 

13 1978 (16 U.S.C. 2634) is amended by adding 

14 at the end the following: ‘‘In the case of the 

15 standard established by paragraph (21) of sec16 tion 111(d), the reference contained in this sub17 section to the date of enactment of this Act 

18 shall be deemed to be a reference to the date 

19 of enactment of that paragraph (21).’’. 

20 Subtitle O—Report on Low- and 

21 No-Carbon Energy Technologies 

22 SEC. 2171. REPORT. 

23 (a) IN GENERAL.—Not later than 1 year before the 

24 date on which the credits under sections 45L, 45S, 45T, 

25 48E, 179D, and 179F of the Internal Revenue Code of 


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1 1986 expire, the Secretary, in consultation with the Sec2 retary of Treasury, shall submit to the Committees on Fi3 nance and Energy of the Senate and the Committees on 

4 Natural Resources, Ways and Means, and Energy and 

5 Commerce of the House of Representative a report on 

6 whether continuation of the credits under sections 45L, 

7 45S, 45T, 48E, 179D, and 179F of the Internal Revenue 

8 Code of 1986 remains necessary to achieve the carbon sav9 ings goal described in section 3001(1). 

10 (b) REQUIREMENTS.—In preparing the report re11 quired under subsection (a), the Secretary shall con12 sider— 

13 (1) regional differences in energy prices; 

14 (2) the innovation and diffusion of new tech15 nologies; and 

16 (3) the interaction between the credits and 

17 other Federal and State incentives for renewable and 

18 conventional energy sources. 

19 Subtitle P—Loan Programs 

20 SEC. 2181. TERMS AND CONDITIONS FOR INCENTIVES FOR 

21 INNOVATIVE TECHNOLOGIES. 

22 (a) BORROWER PAYMENT OF SUBSIDY COST.— 

23 (1) IN GENERAL.—Section 1702 of the Energy 

24 Policy Act of 2005 (42 U.S.C. 16512) is amended 

25 by adding at the end the following: 


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1 ‘‘(l) BORROWER PAYMENT OF SUBSIDY COST.— 

2 ‘‘(1) IN GENERAL.—In addition to the require3 ment in subsection (b)(1), no guarantee shall be 

4 made unless the Secretary has received from the 

5 borrower not less than 25 percent of the cost of the 

6 guarantee. 

7 ‘‘(2) ESTIMATE.—The Secretary shall provide 

8 to the borrower, as soon as practicable, an estimate 

9 or range of the cost of the guarantee under para10 graph (1).’’. 

11 (2) CONFORMING AMENDMENT.—Section 

12 1702(b) of the Energy Policy Act of 2005 (42 

13 U.S.C. 16512(b)) is amended— 

14 (A) by striking ‘‘(1) IN GENERAL.—No 

15 guarantee’’ and inserting the following: ‘‘Sub16 ject to subsection (l), no guarantee’’; 

17 (B) by redesignating subparagraphs (A), 

18 (B), and (C) as paragraphs (1), (2), and (3), 

19 respectively, and indenting appropriately; and 

20 (C) in paragraph (3) (as so redesig21 nated)— 

22 (i) by striking ‘‘subparagraph (A)’’ 

23 and inserting ‘‘paragraph (1)’’; and 

24 (ii) by striking ‘‘subparagraph (B)’’ 

25 and inserting ‘‘paragraph (2)’’. 


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1 (b) PROHIBITION ON SUBORDINATION OF DEBT.— 

2 Section 1702(d)(3) of the Energy Policy Act of 2005 (42 

3 U.S.C. 16512(d)(3)) is amended by striking ‘‘is not subor4 dinate’’ and inserting ‘‘(including any reorganization, re5 structuring, or termination of the obligation) shall not at 

6 any time be subordinate’’. 

7 (c) LOAN PROGRAM TRANSPARENCY.—Section 1703 

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

9 amended by adding at the end the following: 

10 ‘‘(f) LOAN STATUS.— 

11 ‘‘(1) REQUEST.—If the Secretary does not 

12 make a final decision on an application for a loan 

13 guarantee under this section by the date that is 270 

14 days after receipt of the application by the Sec15 retary, on that date and every 90 days thereafter 

16 until the final decision is made, the applicant may 

17 request that the Secretary provide to the applicant 

18 a description of the status of the application. 

19 ‘‘(2) RESPONSE.—Not later than 10 days after 

20 receiving a request from an applicant under para21 graph (1), the Secretary shall provide to the appli22 cant a response that includes— 

23 ‘‘(A) a summary of any factors that are 

24 delaying a final decision on the application; and 


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1 ‘‘(B) an estimate of when review of the ap2 plication will be completed.’’. 

3 (d) TEMPORARY PROGRAM FOR RAPID DEPLOYMENT

4 OF RENEWABLE ENERGY AND ELECTRIC POWER TRANS5 MISSION PROJECTS.— 

6 (1) REPEAL.—Section 1705 of the Energy Pol7 icy Act of 2005 (42 U.S.C. 16516) is repealed. 

8 (2) RESCISSION.—There is rescinded the unob9 ligated balance of amounts made available to carry 

10 out the loan guarantee program established under 

11 section 1705 of the Energy Policy Act of 2005 (42 

12 U.S.C. 16516) (before the amendment made by 

13 paragraph (1)). 

14 (3) MANAGEMENT.—The Secretary shall ensure 

15 rigorous continued management and oversight of all 

16 outstanding loans guaranteed under the program de17 scribed in subsection (b) until those loans have been 

18 repaid in full. 

19 SEC. 2182. STATE LOAN ELIGIBILITY. 

20 (a) DEFINITIONS.—Section 1701 of the Energy Pol21 icy Act of 2005 (42 U.S.C. 16511) is amended by adding 

22 at the end the following: 

23 ‘‘(6) STATE.—The term ‘State’ has the mean24 ing given the term in section 202 of the Energy 

25 Conservation and Production Act (42 U.S.C. 6802). 


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1 ‘‘(7) STATE ENERGY FINANCING INSTITU2 TION.— 

3 ‘‘(A) IN GENERAL.—The term ‘State en4 ergy financing institution’ means a quasi-inde5 pendent entity or an entity within a State agen6 cy or financing authority established by a 

7 State— 

8 ‘‘(i) to provide financing support or 

9 credit enhancements, including loan guar10 antees and loan loss reserves, for eligible 

11 projects; and 

12 ‘‘(ii) to create liquid markets for eligi13 ble projects, including warehousing and 

14 securitization, or take other steps to reduce 

15 financial barriers to the deployment of ex16 isting and new eligible projects. 

17 ‘‘(B) INCLUSION.—The term ‘State energy 

18 financing institution’ includes an entity or orga19 nization established to achieve the purposes de20 scribed in clauses (i) and (ii) of subparagraph 

21 (A) by an Indian tribal entity or an Alaska Na22 tive Corporation.’’. 

23 (b) TERMS AND CONDITIONS.—Section 1702 of the 

24 Energy Policy Act of 2005 (42 U.S.C. 16512) (as amend25 ed by section 4001(a)(1)) is amended— 


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1 (1) in subsection (a), by inserting ‘‘or to a 

2 State energy financing institution’’ after ‘‘for 

3 projects’’; and 

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

5 ‘‘(m) STATE ENERGY FINANCING INSTITUTIONS.— 

6 ‘‘(1) ELIGIBILITY.—To be eligible for a guar7 antee under this title, a State energy financing insti8 tution— 

9 ‘‘(A) shall meet the requirements of section 

10 1703(a)(1); and 

11 ‘‘(B) shall not be required to meet the re12 quirements of section 1703(a)(2). 

13 ‘‘(2) PARTNERSHIPS AUTHORIZED.—In car14 rying out a project receiving a loan guarantee under 

15 this title, State energy financing institutions may 

16 enter into partnerships with private entities, tribal 

17 entities, and Alaska Native corporations.’’. 

18 TITLE III—CUTTING POLLUTION 

19 AND WASTE 

20 Subtitle A—Carbon Savings Goal 

21 SEC. 3001. POLICY OF UNITED STATES ON ADDRESSING 

22 CLIMATE CHANGE. 

23 It is the policy of the United States— 

24 (1) to use appropriate authorities and available 

25 technologies to reduce the greenhouse gas emissions 


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1 of the United States by not less than 2 percent per 

2 year on average through 2025; 

3 (2) to make the investments necessary to im4 prove the resilience of vulnerable communities and 

5 infrastructure in the United States to the impacts of 

6 climate change that can no longer be prevented; and 

7 (3) to exercise the international leadership posi8 tion of the United States to address climate change 

9 by securing commitments from other major carbon10 emitting countries to meet their own carbon pollu11 tion reduction targets in a transparent and verifiable 

12 manner. 

13 Subtitle B—American Energy 

14 Efficiency 

15 SEC. 3011. ENERGY EFFICIENCY RESOURCE STANDARD FOR 

16 RETAIL ELECTRICITY AND NATURAL GAS 

17 SUPPLIERS. 

18 (a) IN GENERAL.—Title VI of the Public Utility Reg19 ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 

20 amended by adding at the end the following: 

21 ‘‘SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE 

22 STANDARD FOR RETAIL ELECTRICITY AND 

23 NATURAL GAS SUPPLIERS. 

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

25 ‘‘(1) BASE QUANTITY.— 


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1 ‘‘(A) IN GENERAL.—The term ‘base quan2 tity’, with respect to a retail electricity supplier 

3 or retail natural gas supplier, means, for each 

4 calendar year for which a performance standard 

5 is established under subsection (c), the average 

6 annual quantity of electricity or natural gas de7 livered by the retail electricity supplier or retail 

8 natural gas supplier to retail customers during 

9 the 3 calendar years immediately preceding the 

10 first year that compliance is required under 

11 subsection (c)(1). 

12 ‘‘(B) EXCLUSION.—The term ‘base quan13 tity’, with respect to a retail natural gas sup14 plier, does not include natural gas delivered for 

15 purposes of electricity generation. 

16 ‘‘(2) CUSTOMER FACILITY SAVINGS.—The term 

17 ‘customer facility savings’ means a reduction in end18 use electricity or natural gas consumption (including 

19 waste heat energy savings) at a facility of an end20 use consumer of electricity or natural gas served by 

21 a retail electricity supplier or natural gas supplier, 

22 as compared to— 

23 ‘‘(A) in the case of a new facility, con24 sumption at a reference facility of average effi25 ciency; 


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1 ‘‘(B) in the case of an existing facility, 

2 consumption at the facility during a base period 

3 of not less than 1 year; 

4 ‘‘(C) in the case of new equipment that re5 places existing equipment at the end of the use6 ful life of the existing equipment, consumption 

7 by new equipment of average efficiency of the 

8 same equipment type, except that customer sav9 ings under this subparagraph shall not be 

10 counted towards customer savings under sub11 paragraph (A) or (B); and 

12 ‘‘(D) in the case of new equipment that re13 places existing equipment with remaining useful 

14 life— 

15 ‘‘(i) consumption of the existing 

16 equipment for the remaining useful life of 

17 the equipment; and 

18 ‘‘(ii) thereafter, consumption of new 

19 equipment of average efficiency. 

20 ‘‘(3) ELECTRICITY SAVINGS.—The term ‘elec21 tricity savings’ means reductions in electricity con22 sumption achieved through measures implemented 

23 after the date of enactment of this section, as deter24 mined in accordance with regulations promulgated 

25 by the Secretary, that are limited to— 


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1 ‘‘(A) customer facility savings of elec2 tricity, adjusted to reflect any associated in3 crease in fuel consumption at the facility; 

4 ‘‘(B) reductions in distribution system 

5 losses of electricity achieved by a retail elec6 tricity supplier, as compared to losses attrib7 utable to new or replacement distribution sys8 tem equipment of average efficiency, as defined 

9 in regulations promulgated by the Secretary; 

10 ‘‘(C) CHP savings; 

11 ‘‘(D) codes and standards savings of elec12 tricity; and 

13 ‘‘(E) fuel switching energy savings that re14 sults in net savings of electricity. 

15 ‘‘(4) NATURAL GAS SAVINGS.—The term ‘nat16 ural gas savings’ means reductions in natural gas 

17 consumption from measures implemented after the 

18 date of enactment of this section, as determined in 

19 accordance with regulations promulgated by the Sec20 retary, that are limited to— 

21 ‘‘(A) customer facility savings of natural 

22 gas, adjusted to reflect any associated increase 

23 in electricity consumption or consumption of 

24 other fuels at the facility; 


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1 ‘‘(B) reductions in leakage, operational 

2 losses, and consumption of natural gas fuel to 

3 operate a gas distribution system, achieved by 

4 a retail natural gas supplier, as compared to 

5 similar leakage, losses, and consumption during 

6 a base period of not less than 1 year; 

7 ‘‘(C) codes and standards savings of nat8 ural gas; and 

9 ‘‘(D) fuel switching energy savings that re10 sults in net savings of natural gas. 

11 ‘‘(5) RETAIL ELECTRICITY SUPPLIER.— 

12 ‘‘(A) IN GENERAL.—The term ‘retail elec13 tricity supplier’ means, for any given calendar 

14 year, an electric utility that sells not less than 

15 1,000,000 megawatt hours of electric energy to 

16 electric consumers for purposes other than re17 sale during the preceding calendar year. 

18 ‘‘(B) INCLUSIONS AND LIMITATIONS.—For 

19 purposes of determining whether an electric 

20 utility qualifies as a retail electricity supplier 

21 under subparagraph (A)— 

22 ‘‘(i) deliveries by any affiliate of an 

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1 ered to be deliveries by the electric utility; 

2 and 

3 ‘‘(ii) deliveries by any electric utility 

4 to a lessee, tenant, or affiliate of the elec5 tric utility shall not be considered to be de6 liveries to electric consumers. 

7 ‘‘(6) RETAIL NATURAL GAS SUPPLIER.— 

8 ‘‘(A) IN GENERAL.—The term ‘retail nat9 ural gas supplier’ means, for any given calendar 

10 year, a local distribution company (as defined 

11 in section 2 of the Natural Gas Policy Act of 

12 1978 (15 U.S.C. 3301)), that delivered to nat13 ural gas consumers more than 5,000,000,000 

14 cubic feet of natural gas for purposes other 

15 than resale during the preceding calendar year. 

16 ‘‘(B) INCLUSIONS AND LIMITATIONS.—For 

17 purposes of determining whether a person 

18 qualifies as a retail natural gas supplier under 

19 subparagraph (A)— 

20 ‘‘(i) deliveries of natural gas by any 

21 affiliate of a local distribution company to 

22 consumers for purposes other than resale 

23 shall be considered to be deliveries by the 

24 local distribution company; and 


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1 ‘‘(ii) deliveries of natural gas to a les2 see, tenant, or affiliate of a local distribu3 tion company shall not be considered to be 

4 deliveries to natural gas consumers. 

5 ‘‘(b) ESTABLISHMENT OF PROGRAM.— 

6 ‘‘(1) REGULATIONS.—Not later than 1 year 

7 after the date of enactment of this section, the Sec8 retary shall, by regulation, establish a program to 

9 implement and enforce the requirements of this sec10 tion, including by— 

11 ‘‘(A) defining the terms ‘CHP savings’, 

12 ‘code and standards savings’, ‘combined heat 

13 and power system’, ‘cost-effective’, ‘fuel switch14 ing energy savings’, ‘reporting period’, ‘third15 party efficiency provider’, and ‘waste heat en16 ergy savings’; 

17 ‘‘(B) establishing measurement and 

18 verification procedures and standards that 

19 count only measures and savings that are addi20 tional to business-as-usual customer purchase 

21 practices; 

22 ‘‘(C) establishing requirements under 

23 which retail electricity suppliers and retail nat24 ural gas suppliers shall— 


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1 ‘‘(i) demonstrate, document, and re2 port the compliance of the retail electricity 

3 suppliers and retail natural gas suppliers 

4 with the performance standards under sub5 section (c); and 

6 ‘‘(ii) estimate the impact of the stand7 ards on current and future electricity and 

8 natural gas use in the service territories of 

9 the suppliers; 

10 ‘‘(D) establishing requirements governing 

11 applications for, and implementation of, dele12 gated State administration under subsection 

13 (e); and 

14 ‘‘(E) establishing rules to govern transfers 

15 of electricity or natural gas savings between 

16 suppliers and third-party efficiency providers 

17 serving the same State and between suppliers 

18 and third-party efficiency providers serving dif19 ferent States. 

20 ‘‘(2) COORDINATION WITH STATE PROGRAMS.— 

21 In establishing and implementing this section, the 

22 Secretary shall, to the maximum extent practicable, 

23 preserve the integrity and incorporate best practices 

24 of existing State energy efficiency programs. 

25 ‘‘(c) PERFORMANCE STANDARDS.— 


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1 ‘‘(1) COMPLIANCE OBLIGATION.—Not later 

2 than May 1 of the calendar year immediately fol3 lowing each reporting period— 

4 ‘‘(A) each retail electricity supplier shall 

5 submit to the Secretary a report, in accordance 

6 with regulations promulgated by the Secretary, 

7 demonstrating that the retail electricity supplier 

8 has achieved cumulative electricity savings (ad9 justed to account for any attrition of savings 

10 measures implemented in prior years) in each 

11 calendar year that are equal to the applicable 

12 percentage of the base quantity of the retail 

13 electricity supplier; and 

14 ‘‘(B) each retail natural gas supplier shall 

15 submit to the Secretary a report, in accordance 

16 with regulations promulgated by the Secretary, 

17 demonstrating that it has achieved cumulative 

18 natural gas savings (adjusted to account for 

19 any attrition of savings measures implemented 

20 in prior years) in each calendar year that are 

21 equal to the applicable percentage of the base 

22 quantity of such retail natural gas supplier. 

23 ‘‘(2) STANDARDS FOR 2017 THROUGH 2030.— 

24 For each of calendar years 2017 through 2030, the 

25 applicable percentages are as follows: 


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‘‘Calendar Year Cumulative Electricity 

Savings Percentage 

Cumulative Natural Gas 

Savings Percentage 

2017 1.00 0.50

2018 2.00 1.25

2019 3.00 2.00

2020 4.25 3.00

2021 5.50 4.00

2022 7.00 5.00

2023 8.50 6.00

2024 10.00 7.00

2025 11.50 8.00

2026 13.00 9.00

2027 14.75 10.00

2028 16.50 11.00

2029 18.25 12.00

2030 20.00 13.00. 

1 ‘‘(3) SUBSEQUENT YEARS.— 

2 ‘‘(A) CALENDAR YEARS 2031 THROUGH

3 2040.—Not later than December 31, 2028, the 

4 Secretary shall promulgate regulations estab5 lishing performance standards (expressed as ap6 plicable percentages of base quantity for both 

7 cumulative electricity savings and cumulative 

8 natural gas savings) for each of calendar years 

9 2031 through 2040. 

10 ‘‘(B) REQUIREMENTS.—The Secretary 

11 shall establish standards under this paragraph 

12 at levels reflecting the maximum achievable 


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1 level of cost-effective energy efficiency potential, 

2 taking into account— 

3 ‘‘(i) cost-effective energy savings 

4 achieved by leading retail electricity sup5 pliers and retail natural gas suppliers; 

6 ‘‘(ii) opportunities for new codes and 

7 standard savings; 

8 ‘‘(iii) technology improvements; and 

9 ‘‘(iv) other indicators of cost-effective 

10 energy efficiency potential including dif11 ferences between States. 

12 ‘‘(C) MINIMUM PERCENTAGE.—In no case 

13 shall the applicable percentages for any cal14 endar year be less than the applicable percent15 ages for calendar year 2030. 

16 ‘‘(4) DELAY OF SUBMISSION FOR FIRST RE17 PORTING PERIOD.— 

18 ‘‘(A) IN GENERAL.—Notwithstanding 

19 paragraphs (1) and (2), for the 2017 reporting 

20 period, the Secretary may accept a request from 

21 a retail electricity supplier or a retail natural 

22 gas supplier to delay the required submission of 

23 documentation of all or part of the required 

24 savings for up to 2 years. 


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1 ‘‘(B) PLAN FOR COMPLIANCE.—The re2 quest for delay under subparagraph (A) shall 

3 include a plan for coming into full compliance 

4 by the end of the 2018–2019 reporting period. 

5 ‘‘(5) APPLYING UNUSED SAVINGS TO FUTURE

6 YEARS.—If savings achieved in a year exceed the 

7 performance standards specified in this subsection, 

8 any savings in excess of the performance standards 

9 may be applied toward performance standards speci10 fied for future years. 

11 ‘‘(d) ENFORCEMENT AND JUDICIAL REVIEW.— 

12 ‘‘(1) REVIEW OF RETAIL SUPPLIER REPORTS.— 

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

14 review each report submitted to the Secretary 

15 by a retail electricity supplier or retail natural 

16 gas supplier under subsection (c) to verify that 

17 the applicable performance standards under 

18 subsection (c) have been met. 

19 ‘‘(B) EXCLUSION.—In determining compli20 ance with the applicable performance standards 

21 under subsection (c), the Secretary shall ex22 clude reported electricity savings or natural gas 

23 savings that are not adequately demonstrated 

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1 tions promulgated under subsections (b) and 

2 (c). 

3 ‘‘(2) PENALTY FOR FAILURE TO DOCUMENT

4 ADEQUATE SAVINGS.—If a retail electricity supplier 

5 or a retail natural gas supplier fails to demonstrate 

6 compliance with an applicable performance standard 

7 under subsection (c), or to pay to the State an appli8 cable alternative compliance payment under sub9 section (e)(3), the Secretary shall assess against the 

10 retail electricity supplier or retail natural gas sup11 plier a civil penalty for each failure in an amount 

12 equal to, as adjusted for inflation in accordance with 

13 such regulations as the Secretary may promulgate— 

14 ‘‘(A) $100 per megawatt hour of electricity 

15 savings or alternative compliance payment that 

16 the retail electricity supplier failed to achieve or 

17 make, respectively; or 

18 ‘‘(B) $10 per million Btu of natural gas 

19 savings or alternative compliance payment that 

20 the retail natural gas supplier failed to achieve 

21 or make, respectively. 

22 ‘‘(3) OFFSETTING STATE PENALTIES.—The 

23 Secretary shall reduce the amount of any penalty 

24 under paragraph (2) by the amount paid by the rel25 evant retail electricity supplier or retail natural gas 


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1 supplier to a State for failure to comply with the re2 quirements of a State energy efficiency resource 

3 standard during the same compliance period. 

4 ‘‘(4) ENFORCEMENT PROCEDURES.—The Sec5 retary shall assess a civil penalty, as provided under 

6 paragraph (2), in accordance with the procedures 

7 described in section 333(d) of the Energy Policy and 

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

9 ‘‘(e) STATE ADMINISTRATION.— 

10 ‘‘(1) IN GENERAL.—On receipt of an applica11 tion from the Governor of a State (including the 

12 Mayor of the District of Columbia), the Secretary 

13 may delegate to the State responsibility for admin14 istering this section within the territory of the State 

15 if the Secretary determines that the State will imple16 ment an energy efficiency program that meets or ex17 ceeds the requirements of this section. 

18 ‘‘(2) SECRETARIAL DETERMINATION.—Not 

19 later than 180 days after the date on which a com20 plete application is received by the Secretary, the 

21 Secretary shall make a substantive determination 

22 approving or disapproving a State application, after 

23 public notice and comment. 

24 ‘‘(3) ALTERNATIVE COMPLIANCE PAYMENTS.— 


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1 ‘‘(A) IN GENERAL.—As part of an applica2 tion submitted under paragraph (1), a State 

3 may permit retail electricity suppliers or retail 

4 natural gas suppliers to pay to the State, by 

5 not later than May 1 of the calendar year im6 mediately following the applicable reporting pe7 riod, an alternative compliance payment in an 

8 amount equal to, as adjusted for inflation in ac9 cordance with such regulations as the Secretary 

10 may promulgate, not less than— 

11 ‘‘(i) $50 per megawatt hour of elec12 tricity savings needed to make up any def13 icit with regard to a compliance obligation 

14 under the applicable performance stand15 ard; or 

16 ‘‘(ii) $5 per million Btu of natural gas 

17 savings needed to make up any deficit with 

18 regard to a compliance obligation under 

19 the applicable performance standard. 

20 ‘‘(B) USE OF PAYMENTS.—Alternative 

21 compliance payments collected by a State under 

22 subparagraph (A) shall be used by the State to 

23 administer the delegated authority of the State 

24 under this section and to implement cost-effec25 tive energy efficiency programs that— 


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1 ‘‘(i) to the maximum extent prac2 ticable, achieve electricity savings and nat3 ural gas savings in the State sufficient to 

4 make up the deficit associated with the al5 ternative compliance payments; and 

6 ‘‘(ii) can be measured and verified in 

7 accordance with the applicable procedures 

8 and standards under subsection (b)(1)(B). 

9 ‘‘(4) REVIEW OF STATE IMPLEMENTATION.— 

10 ‘‘(A) PERIODIC REVIEW.—Every 2 years, 

11 the Secretary shall review State implementation 

12 of this section for conformance with the requirements of this section in approximately 1 13 ⁄2

14 of the States that have received approval under 

15 this subsection to administer the program, so 

16 that each State shall be reviewed at least every 

17 4 years. 

18 ‘‘(B) REPORT.—To facilitate the review 

19 under subparagraph (A), the Secretary may re20 quire the State to submit a report dem21 onstrating the conformance of the State with 

22 the requirements of this section. 

23 ‘‘(C) DEFICIENCIES.— 

24 ‘‘(i) IN GENERAL.—In completing a 

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1 retary finds deficiencies, the Secretary 

2 shall— 

3 ‘‘(I) notify the State of the defi4 ciencies; 

5 ‘‘(II) direct the State to correct 

6 the deficiencies; and 

7 ‘‘(III) require the State to report 

8 to the Secretary on progress made by 

9 not later than 180 days after the date 

10 on which the State receives notice 

11 under subclause (I). 

12 ‘‘(ii) SUBSTANTIAL DEFICIENCIES.—If 

13 the deficiencies are substantial, the Sec14 retary shall— 

15 ‘‘(I) disallow the reported elec16 tricity savings or natural gas savings 

17 that the Secretary determines are not 

18 credible due to deficiencies; 

19 ‘‘(II) re-review the State not 

20 later than 2 years after the date on 

21 which the original review was com22 pleted; and 

23 ‘‘(III) if substantial deficiencies 

24 remain uncorrected after the review 

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1 voke the authority of the State to ad2 minister the program established 

3 under this section. 

4 ‘‘(f) INFORMATION AND REPORTS.—In accordance 

5 with section 13 of the Federal Energy Administration Act 

6 of 1974 (15 U.S.C. 772), the Secretary may require any 

7 retail electricity supplier, retail natural gas supplier, third8 party efficiency provider, or any other entity that the Sec9 retary determines appropriate, to provide any information 

10 the Secretary determines appropriate to carry out this sec11 tion. 

12 ‘‘(g) STATE LAW.—Nothing in this section dimin13 ishes or qualifies any authority of a State or political sub14 division of a State to adopt or enforce any law or regula15 tion respecting electricity savings or natural gas savings, 

16 including any law or regulation establishing energy effi17 ciency requirements that are more stringent than those 

18 under this section, except that no State law or regulation 

19 shall relieve any person of any requirement otherwise ap20 plicable under this section.’’. 

21 (b) CONFORMING AMENDMENT.—The table of con22 tents of the Public Utility Regulatory Policies Act of 1978 

23 (16 U.S.C. prec. 2601) is amended by adding at the end 

24 of the items relating to title VI the following: 

‘‘Sec. 609. Rural and remote communities electrification grants. 

‘‘Sec. 610. Federal energy efficiency resource standard for retail electricity and 

natural gas suppliers.’’. 


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1 Subtitle C—Energy Efficiency 

2 Retrofit Program 

3 SEC. 3021. ENERGY EFFICIENCY RETROFIT PILOT PRO4 GRAM. 

5 (a) DEFINITIONS.—In this section: 

6 (1) APPLICANT.—The term ‘‘applicant’’ means 

7 a nonprofit organization that applies for a grant 

8 under this section. 

9 (2) ENERGY-EFFICIENCY IMPROVEMENT.— 

10 (A) IN GENERAL.—The term ‘‘energy-effi11 ciency improvement’’ means an installed meas12 ure (including a product, equipment, system, 

13 service, or practice) that results in a reduction 

14 in use by a nonprofit organization for energy or 

15 fuel supplied from outside the nonprofit build16 ing. 

17 (B) INCLUSIONS.—The term ‘‘energy-effi18 ciency improvement’’ includes an installed 

19 measure described in subparagraph (A) involv20 ing— 

21 (i) repairing, replacing, or installing— 

22 (I) a roof or lighting system, or 

23 component of a roof or lighting sys24 tem; 

25 (II) a window; 


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1 (III) a door, including a security 

2 door; or 

3 (IV) a heating, ventilation, or air 

4 conditioning system or component of 

5 the system (including insulation and 

6 wiring and plumbing improvements 

7 needed to serve a more efficient sys8 tem); 

9 (ii) a renewable energy generation or 

10 heating system, including a solar, photo11 voltaic, wind, geothermal, or biomass (in12 cluding wood pellet) system or component 

13 of the system; and 

14 (iii) any other measure taken to mod15 ernize, renovate, or repair a nonprofit 

16 building to make the nonprofit building 

17 more energy efficient. 

18 (3) NONPROFIT BUILDING.— 

19 (A) IN GENERAL.—The term ‘‘nonprofit 

20 building’’ means a building operated and owned 

21 by a nonprofit organization. 

22 (B) INCLUSIONS.—The term ‘‘nonprofit 

23 building’’ includes a building described in sub24 paragraph (A) that is— 

25 (i) a hospital; 


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1 (ii) a youth center; 

2 (iii) a school; 

3 (iv) a social-welfare program facility; 

4 (v) a faith-based organization; and 

5 (vi) any other nonresidential and non6 commercial structure. 

7 (b) ESTABLISHMENT.—Not later than 1 year after 

8 the date of enactment of this Act, the Secretary shall es9 tablish a pilot program to award grants for the purpose 

10 of retrofitting nonprofit buildings with energy-efficiency 

11 improvements. 

12 (c) GRANTS.— 

13 (1) IN GENERAL.—The Secretary may award 

14 grants under the program established under sub15 section (b). 

16 (2) APPLICATION.—The Secretary may award a 

17 grant under this section if an applicant submits to 

18 the Secretary an application at such time, in such 

19 form, and containing such information as the Sec20 retary may prescribe. 

21 (3) CRITERIA FOR GRANT.—In determining 

22 whether to award a grant under this section, the 

23 Secretary shall apply performance-based criteria, 

24 which shall give priority to applications based on— 

25 (A) the energy savings achieved; 


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1 (B) the cost-effectiveness of the energy-ef2 ficiency improvement; 

3 (C) an effective plan for evaluation, meas4 urement, and verification of energy savings; 

5 (D) the financial need of the applicant; 

6 and 

7 (E) the percentage of the matching con8 tribution by the applicant. 

9 (4) LIMITATION ON INDIVIDUAL GRANT

10 AMOUNT.—Each grant awarded under this section 

11 shall not exceed— 

12 (A) an amount equal to 50 percent of the 

13 energy-efficiency improvement; and 

14 (B) $200,000. 

15 (5) COST SHARING.— 

16 (A) IN GENERAL.—A grant awarded under 

17 this section shall be subject to a minimum non18 Federal cost-sharing requirement of 50 percent. 

19 (B) IN-KIND CONTRIBUTIONS.—The non20 Federal share may be provided in the form of 

21 in-kind contributions of materials or services. 

22 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out this section 

24 $10,000,000 for each of fiscal years 2016 through 2020, 

25 to remain available until expended. 


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1 Subtitle D—Weatherization En2 hancement and Local Energy 

3 Efficiency Investment and Ac4 countability 

5 SEC. 3031. FINDINGS. 

6 Congress finds that— 

7 (1) the State energy program established under 

8 part D of title III of the Energy Policy and Con9 servation Act (42 U.S.C. 6321 et seq.) (referred to 

10 in this section as ‘‘SEP’’) and the Weatherization 

11 Assistance Program for Low-Income Persons estab12 lished under part A of title IV of the Energy Con13 servation and Production Act (42 U.S.C. 6861 et 

14 seq.) (referred to in this section as ‘‘WAP’’) have 

15 proven to be beneficial, long-term partnerships 

16 among Federal, State, and local partners; 

17 (2) the SEP and the WAP have been reauthor18 ized on a bipartisan basis over many years to ad19 dress changing national, regional, and State cir20 cumstances and needs, especially through— 

21 (A) the Energy Policy and Conservation 

22 Act (42 U.S.C. 6201 et seq.); 

23 (B) the Energy Conservation and Produc24 tion Act (42 U.S.C. 6801 et seq.); 


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1 (C) the State Energy Efficiency Programs 

2 Improvement Act of 1990 (Public Law 101– 

3 440; 104 Stat. 1006); 

4 (D) the Energy Policy Act of 1992 (42 

5 U.S.C. 13201 et seq.); 

6 (E) the Energy Policy Act of 2005 (42 

7 U.S.C. 15801 et seq.); and 

8 (F) the Energy Independence and Security 

9 Act of 2007 (42 U.S.C. 17001 et seq.); 

10 (3) the SEP, also known as the ‘‘State energy 

11 conservation program’’— 

12 (A) was first created in 1975 to implement 

13 a State-based, national program in support of 

14 energy efficiency, renewable energy, economic 

15 development, energy emergency preparedness, 

16 and energy policy; and 

17 (B) has come to operate in every sector of 

18 the economy in support of the private sector to 

19 improve productivity and has dramatically re20 duced the cost of government through energy 

21 savings at the State and local levels; 

22 (4) Federal laboratory studies have concluded 

23 that, for every Federal dollar invested through the 

24 SEP, more than $7 is saved in energy costs and al25 most $11 in non-Federal funds is leveraged; 


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1 (5) the WAP— 

2 (A) was first created in 1976 to assist low3 income families in response to the first oil em4 bargo; 

5 (B) has become the largest residential en6 ergy conservation program in the United 

7 States, with more than 7,100,000 homes weath8 erized since the WAP was created; 

9 (C) saves an estimated 35 percent of con10 sumption in the typical weatherized home, yield11 ing average annual savings of $437 per year in 

12 home energy costs; 

13 (D) has created thousands of jobs in both 

14 the construction sector and in the supply chain 

15 of materials suppliers, vendors, and manufac16 turers who supply the WAP; 

17 (E) returns $2.51 in energy savings for 

18 every Federal dollar spent in energy and non19 energy benefits over the life of weatherized 

20 homes; 

21 (F) serves as a foundation for residential 

22 energy efficiency retrofit standards, technical 

23 skills, and workforce training for the emerging 

24 broader market and reduces residential and 


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1 power plant emissions of carbon dioxide by 2.65 

2 metric tons each year per home; and 

3 (G) has decreased national energy con4 sumption by the equivalent of 24,100,000 bar5 rels of oil annually; 

6 (6) the WAP can be enhanced with the addition 

7 of a targeted portion of the Federal funds through 

8 an innovative program that supports projects per9 formed by qualified nonprofit organizations that 

10 have a demonstrated capacity to build, renovate, re11 pair, or improve the energy efficiency of a significant 

12 number of low-income homes, building on the suc13 cess of the existing program without replacing the 

14 existing WAP network or creating a separate deliv15 ery mechanism for basic WAP services; 

16 (7) the WAP has increased energy efficiency 

17 opportunities by promoting new, competitive public18 private sector models of retrofitting low-income 

19 homes through new Federal partnerships; 

20 (8) improved monitoring and reporting of the 

21 work product of the WAP has yielded benefits, and 

22 expanding independent verification of efficiency work 

23 will support the long-term goals of the WAP; 

24 (9) reports of the Government Accountability 

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1 ment, and State auditors have identified State-level 

2 deficiencies in monitoring efforts that can be ad3 dressed in a manner that will ensure that WAP 

4 funds are used more effectively; 

5 (10) through the history of the WAP, the WAP 

6 has evolved with improvements in efficiency tech7 nology, including, in the 1990s, many States adopt8 ing advanced home energy audits, which has led to 

9 great returns on investment; and 

10 (11) as the home energy efficiency industry has 

11 become more performance-based, the WAP should 

12 continue to use those advances in technology and the 

13 professional workforce. 

14 SEC. 3032. REAUTHORIZATION OF WEATHERIZATION AS15 SISTANCE PROGRAM. 

16 Section 422 of the Energy Conservation and Produc17 tion Act (42 U.S.C. 6872) is amended by striking ‘‘appro18 priated—’’ and all that follows through the period at the 

19 end and inserting ‘‘appropriated $450,000,000 for each 

20 of fiscal years 2016 through 2020.’’. 


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1 SEC. 3033. GRANTS FOR NEW, SELF-SUSTAINING LOW-IN2 COME, SINGLE-FAMILY, AND MULTIFAMILY 

3 HOUSING ENERGY RETROFIT MODEL PRO4 GRAMS TO ELIGIBLE MULTI-STATE HOUSING 

5 AND ENERGY NONPROFIT ORGANIZATIONS. 

6 The Energy Conservation and Production Act is 

7 amended by inserting after section 414B (42 U.S.C. 

8 6864b) the following: 

9 ‘‘SEC. 414C. GRANTS FOR NEW, SELF-SUSTAINING LOW-IN10 COME, SINGLE-FAMILY, AND MULTIFAMILY 

11 HOUSING ENERGY RETROFIT MODEL PRO12 GRAMS TO ELIGIBLE MULTI-STATE HOUSING 

13 AND ENERGY NONPROFIT ORGANIZATIONS. 

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

15 ‘‘(1) to expand the number of low-income, sin16 gle-family and multifamily homes that receive energy 

17 efficiency retrofits; 

18 ‘‘(2) to promote innovation and new models of 

19 retrofitting low-income homes through new Federal 

20 partnerships with covered organizations that lever21 age substantial donations, donated materials, volun22 teer labor, homeowner labor equity, and other pri23 vate sector resources; 

24 ‘‘(3) to assist the covered organizations in dem25 onstrating, evaluating, improving, and replicating 


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1 widely the model low-income energy retrofit pro2 grams of the covered organizations; and 

3 ‘‘(4) to ensure that the covered organizations 

4 make the energy retrofit programs of the covered or5 ganizations self-sustaining by the time grant funds 

6 have been expended. 

7 ‘‘(b) DEFINITIONS.—In this section: 

8 ‘‘(1) COVERED ORGANIZATION.—The term ‘cov9 ered organization’ means an organization that— 

10 ‘‘(A) is described in section 501(c)(3) of 

11 the Internal Revenue Code of 1986 and exempt 

12 from taxation under 501(a) of that Code; and 

13 ‘‘(B) has an established record of con14 structing, renovating, repairing, or making en15 ergy efficient a total of not less than 250 

16 owner-occupied, single-family or multifamily 

17 homes per year for low-income households, ei18 ther directly or through affiliates, chapters, or 

19 other direct partners (using the most recent 

20 year for which data are available). 

21 ‘‘(2) LOW-INCOME.—The term ‘low-income’ 

22 means an income level that is not more than 200 

23 percent of the poverty level (as determined in ac24 cordance with criteria established by the Director of 

25 the Office of Management and Budget) applicable to 


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1 a family of the size involved, except that the Sec2 retary may establish a higher or lower level if the 

3 Secretary determines that a higher or lower level is 

4 necessary to carry out this section. 

5 ‘‘(3) WEATHERIZATION ASSISTANCE PROGRAM

6 FOR LOW-INCOME PERSONS.—The term ‘Weatheriza7 tion Assistance Program for Low-Income Persons’ 

8 means the program established under this part (in9 cluding part 440 of title 10, Code of Federal Regu10 lations, or successor regulations). 

11 ‘‘(c) COMPETITIVE GRANT PROGRAM.—The Sec12 retary shall make grants to covered organizations through 

13 a national competitive process for use in accordance with 

14 this section. 

15 ‘‘(d) AWARD FACTORS.—In making grants under this 

16 section, the Secretary shall consider— 

17 ‘‘(1) the number of low-income homes the appli18 cant— 

19 ‘‘(A) has built, renovated, repaired, or 

20 made more energy efficient as of the date of the 

21 application; and 

22 ‘‘(B) can reasonably be projected to build, 

23 renovate, repair, or make energy efficient dur24 ing the 10-year period beginning on the date of 

25 the application; 


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1 ‘‘(2) the qualifications, experience, and past 

2 performance of the applicant, including experience 

3 successfully managing and administering Federal 

4 funds; 

5 ‘‘(3) the number and diversity of States and cli6 mates in which the applicant works as of the date 

7 of the application; 

8 ‘‘(4) the amount of non-Federal funds, donated 

9 or discounted materials, discounted or volunteer 

10 skilled labor, volunteer unskilled labor, homeowner 

11 labor equity, and other resources the applicant will 

12 provide; 

13 ‘‘(5) the extent to which the applicant could 

14 successfully replicate the energy retrofit program of 

15 the applicant and sustain the program after the 

16 grant funds have been expended; 

17 ‘‘(6) regional diversity; 

18 ‘‘(7) urban, suburban, and rural localities; and 

19 ‘‘(8) such other factors as the Secretary deter20 mines to be appropriate. 

21 ‘‘(e) APPLICATIONS.— 

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

23 after the date of enactment of this section, the Sec24 retary shall request proposals from covered organiza25 tions. 


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1 ‘‘(2) ADMINISTRATION.—To be eligible to re2 ceive a grant under this section, an applicant shall 

3 submit to the Secretary an application at such time, 

4 in such manner, and containing such information as 

5 the Secretary may require. 

6 ‘‘(3) AWARDS.—Not later than 90 days after 

7 the date of issuance of a request for proposals, the 

8 Secretary shall award grants under this section. 

9 ‘‘(f) ELIGIBLE USES OF GRANT FUNDS.—A grant 

10 under this section may be used for— 

11 ‘‘(1) energy efficiency audits, cost-effective ret12 rofit, and related activities in different climatic re13 gions of the United States; 

14 ‘‘(2) energy efficiency materials and supplies; 

15 ‘‘(3) organizational capacity— 

16 ‘‘(A) to significantly increase the number 

17 of energy retrofits; 

18 ‘‘(B) to replicate an energy retrofit pro19 gram in other States; and 

20 ‘‘(C) to ensure that the program is self21 sustaining after the Federal grant funds are ex22 pended; 

23 ‘‘(4) energy efficiency, audit and retrofit train24 ing, and ongoing technical assistance; 


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1 ‘‘(5) information to homeowners on proper 

2 maintenance and energy savings behaviors; 

3 ‘‘(6) quality control and improvement; 

4 ‘‘(7) data collection, measurement, and 

5 verification; 

6 ‘‘(8) program monitoring, oversight, evaluation, 

7 and reporting; 

8 ‘‘(9) management and administration (up to a 

9 maximum of 10 percent of the total grant); 

10 ‘‘(10) labor and training activities; and 

11 ‘‘(11) such other activities as the Secretary de12 termines to be appropriate. 

13 ‘‘(g) MAXIMUM AMOUNT.— 

14 ‘‘(1) IN GENERAL.—The amount of a grant 

15 provided under this section shall not exceed— 

16 ‘‘(A) if the amount made available to carry 

17 out this section for a fiscal year is 

18 $225,000,000 or more, $5,000,000; and 

19 ‘‘(B) if the amount made available to carry 

20 out this section for a fiscal year is less than 

21 $225,000,000, $1,500,000. 

22 ‘‘(2) TECHNICAL AND TRAINING ASSISTANCE.— 

23 The total amount of a grant provided under this sec24 tion shall be reduced by the cost of any technical 


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1 and training assistance provided by the Secretary 

2 that relates to the grant. 

3 ‘‘(h) GUIDELINES.— 

4 ‘‘(1) IN GENERAL.—Not later than 90 days 

5 after the date of enactment of this section, the Sec6 retary shall issue guidelines to implement the grant 

7 program established under this section. 

8 ‘‘(2) ADMINISTRATION.—The guidelines— 

9 ‘‘(A) shall not apply to the Weatherization 

10 Assistance Program for Low-Income Persons, 

11 in whole or major part; but 

12 ‘‘(B) may rely on applicable provisions of 

13 law governing the Weatherization Assistance 

14 Program for Low-Income Persons to estab15 lish— 

16 ‘‘(i) standards for allowable expendi17 tures; 

18 ‘‘(ii) a minimum savings-to-investment 

19 ratio; 

20 ‘‘(iii) standards— 

21 ‘‘(I) to carry out training pro22 grams; 

23 ‘‘(II) to conduct energy audits 

24 and program activities; 


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1 ‘‘(III) to provide technical assist2 ance; 

3 ‘‘(IV) to monitor program activi4 ties; and 

5 ‘‘(V) to verify energy and cost 

6 savings; 

7 ‘‘(iv) liability insurance requirements; 

8 and 

9 ‘‘(v) recordkeeping requirements, 

10 which shall include reporting to the Office 

11 of Weatherization and Intergovernmental 

12 Programs of the Department of Energy 

13 applicable data on each home retrofitted. 

14 ‘‘(i) REVIEW AND EVALUATION.—The Secretary shall 

15 review and evaluate the performance of any covered orga16 nization that receives a grant under this section (which 

17 may include an audit), as determined by the Secretary. 

18 ‘‘(j) COMPLIANCE WITH STATE AND LOCAL LAW.— 

19 Nothing in this section or any program carried out using 

20 a grant provided under this section supersedes or other21 wise affects any State or local law, to the extent that the 

22 State or local law contains a requirement that is more 

23 stringent than the applicable requirement of this section. 

24 ‘‘(k) ANNUAL REPORTS.—The Secretary shall submit 

25 to Congress annual reports that provide— 


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1 ‘‘(1) findings; 

2 ‘‘(2) a description of energy and cost savings 

3 achieved and actions taken under this section; and 

4 ‘‘(3) any recommendations for further action. 

5 ‘‘(l) FUNDING.—Of the amount of funds that are 

6 made available to carry out the Weatherization Assistance 

7 Program for each of fiscal years 2016 through 2020 under 

8 section 422, the Secretary shall use to carry out this sec9 tion for each of fiscal years 2016 through 2020— 

10 ‘‘(1) 2 percent of the amount if the amount is 

11 less than $225,000,000; 

12 ‘‘(2) 5 percent of the amount if the amount is 

13 $225,000,000 or more but less than $260,000,000; 

14 ‘‘(3) 10 percent of the amount if the amount is 

15 $260,000,000 or more but less than $400,000,000; 

16 and 

17 ‘‘(4) 20 percent of the amount if the amount is 

18 $400,000,000 or more.’’. 

19 SEC. 3034. STANDARDS PROGRAM. 

20 Section 415 of the Energy Conservation and Produc21 tion Act (42 U.S.C. 6865) is amended by adding at the 

22 end the following: 

23 ‘‘(f) STANDARDS PROGRAM.— 

24 ‘‘(1) CONTRACTOR QUALIFICATION.—Effective 

25 beginning January 1, 2016, to be eligible to carry 


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1 out weatherization using funds made available under 

2 this part, a contractor shall be selected through a 

3 competitive bidding process and be— 

4 ‘‘(A) accredited by the Building Perform5 ance Institute; 

6 ‘‘(B) an Energy Smart Home Performance 

7 Team accredited under the Residential Energy 

8 Services Network; or 

9 ‘‘(C) accredited by an equivalent accredita10 tion or program accreditation-based State cer11 tification program approved by the Secretary. 

12 ‘‘(2) GRANTS FOR ENERGY RETROFIT MODEL

13 PROGRAMS.— 

14 ‘‘(A) IN GENERAL.—To be eligible to re15 ceive a grant under section 414C, a covered or16 ganization (as defined in section 414C(b)) shall 

17 use a crew chief who— 

18 ‘‘(i) is certified or accredited in ac19 cordance with paragraph (1); and 

20 ‘‘(ii) supervises the work performed 

21 with grant funds. 

22 ‘‘(B) VOLUNTEER LABOR.—A volunteer 

23 who performs work for a covered organization 

24 that receives a grant under section 414C shall 

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1 section if the volunteer is not directly installing 

2 or repairing mechanical equipment or other 

3 items that require skilled labor. 

4 ‘‘(C) TRAINING.—The Secretary shall use 

5 training and technical assistance funds available 

6 to the Secretary to assist covered organizations 

7 under section 414C in providing training to ob8 tain certification required under this subsection, 

9 including provisional or temporary certification. 

10 ‘‘(3) MINIMUM EFFICIENCY STANDARDS.—Ef11 fective beginning October 1, 2016, the Secretary 

12 shall ensure that— 

13 ‘‘(A) each retrofit for which weatherization 

14 assistance is provided under this part meets 

15 minimum efficiency and quality of work stand16 ards established by the Secretary after weather17 ization of a dwelling unit; 

18 ‘‘(B) at least 10 percent of the dwelling 

19 units are randomly inspected by a third party 

20 accredited under this subsection to ensure com21 pliance with the minimum efficiency and quality 

22 of work standards established under subpara23 graph (A); and 

24 ‘‘(C) the standards established under this 

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1 ards for home performance work that are in ef2 fect on the date of enactment of this subsection, 

3 as determined by the Secretary.’’. 

4 SEC. 3035. REAUTHORIZATION OF STATE ENERGY PRO5 GRAM. 

6 Section 365(f) of the Energy Policy and Conservation 

7 Act (42 U.S.C. 6325(f)) is amended by striking 

8 ‘‘$125,000,000 for each of fiscal years 2007 through 

9 2012’’ and inserting ‘‘$75,000,000 for each of fiscal years 

10 2016 through 2020’’. 

11 Subtitle E—Utility Energy Service 

12 Contracts Improvement 

13 SEC. 3041. FINDINGS. 

14 Congress finds that— 

15 (1) the Federal Government is the largest con16 sumer of energy in the United States; 

17 (2) Federal agencies are expected to meet, by 

18 law, Executive order, and mandate, stringent energy 

19 efficiency and conservation targets; 

20 (3) the utility energy service contract (referred 

21 to in this section as ‘‘UESC’’) was developed to pro22 vide Federal agencies an effective means to imple23 ment energy efficiency, renewable energy and water 

24 efficiency projects, and has been used successfully to 


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1 invest nearly $2,700,000,000 in property at Federal 

2 facilities; 

3 (4) the General Services Administration, which 

4 manages more than 9,600 Federal properties and is 

5 the lead agency for procuring utility services for the 

6 Federal Government, has determined that UESCs 

7 may extend beyond a 10-year period under the law; 

8 (5) the Federal Energy Management Program, 

9 which oversees the UESC program and is a principal 

10 office guiding agencies to use funding more effec11 tively in meeting Federal and agency-specific energy 

12 and resource management objectives, has determined 

13 that UESCs may extend beyond a 10-year period 

14 under the law; 

15 (6) extensive precedent exists for Federal agen16 cies to contract for energy saving services using con17 tracts with term limits of more than 10 years but 

18 not to exceed 25 years; 

19 (7) a number of Federal agencies, contrary to 

20 congressional intent, have sought to limit UESC 

21 term limits to periods of less than 10 years; and 

22 (8) greater flexibility with UESCs will help re23 duce the operational cost of Federal agencies, ulti24 mately saving money for taxpayers. 


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1 SEC. 3042. UTILITY ENERGY SERVICE CONTRACTS. 

2 Part 3 of title V of the National Energy Conservation 

3 Policy Act (as amended by section 2151) is amended by 

4 adding after section 554 the following: 

5 ‘‘SEC. 555. UTILITY ENERGY SERVICE CONTRACTS. 

6 ‘‘(a) IN GENERAL.—Each Federal agency may use, 

7 to the maximum extent practicable, measures provided by 

8 law to meet energy efficiency and conservation mandates 

9 and laws, including through utility energy service con10 tracts. 

11 ‘‘(b) CONTRACT PERIOD.—The term of a utility en12 ergy service contract entered into by a Federal agency may 

13 have a contract period that extends beyond 10 years, but 

14 not to exceed 25 years. 

15 ‘‘(c) REQUIREMENTS.—The conditions of a utility en16 ergy service contract entered into by a Federal agency 

17 shall include requirements for measurement, verification, 

18 and performance assurances or guarantees of the sav19 ings.’’. 

20 Subtitle F—State Residential 

21 Building Energy Efficiency 

22 Loan Pilot Program 

23 SEC. 3051. STATE RESIDENTIAL BUILDING ENERGY EFFI24 CIENCY UPGRADES LOAN PILOT PROGRAM. 

25 (a) LOANS FOR RESIDENTIAL BUILDING ENERGY

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1 ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 

2 is amended by adding at the end the following: 

3 ‘‘SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EF4 FICIENCY UPGRADES. 

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

6 ‘‘(1) CONSUMER-FRIENDLY.—The term ‘con7 sumer-friendly’, with respect to a loan repayment 

8 approach, means a loan repayment approach that— 

9 ‘‘(A) emphasizes convenience for cus10 tomers; 

11 ‘‘(B) is of low cost to consumers; and 

12 ‘‘(C) emphasizes simplicity and ease of use 

13 for consumers in the billing process. 

14 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en15 tity’ means— 

16 ‘‘(A) a State or territory of the United 

17 States; and 

18 ‘‘(B) a tribal organization (as defined in 

19 section 4 of the Indian Self-Determination and 

20 Education Assistance Act (25 U.S.C. 450b)). 

21 ‘‘(3) ENERGY ADVISOR PROGRAM.— 

22 ‘‘(A) IN GENERAL.—The term ‘energy ad23 visor program’ means any program to provide 

24 to owners or residents of residential buildings 

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1 fication, prioritization, and implementation of 

2 energy efficiency and energy savings measures. 

3 ‘‘(B) INCLUSIONS.—The term ‘energy ad4 visor program’ includes a program that pro5 vides— 

6 ‘‘(i) interpretation of energy audit re7 ports; 

8 ‘‘(ii) assistance in the prioritization of 

9 improvements; 

10 ‘‘(iii) assistance in finding qualified 

11 contractors; 

12 ‘‘(iv) assistance in contractor bid re13 views; 

14 ‘‘(v) education on energy conservation 

15 and energy efficiency; 

16 ‘‘(vi) explanations of available incen17 tives and tax credits; 

18 ‘‘(vii) assistance in completion of re19 bate and incentive paperwork; and 

20 ‘‘(viii) any other similar type of sup21 port. 

22 ‘‘(4) ENERGY EFFICIENCY.—The term ‘energy 

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1 tricity and thermal energy) that is achieved without 

2 reducing the quality of energy services through— 

3 ‘‘(A) a measure or program that targets 

4 customer behavior; 

5 ‘‘(B) equipment or energy systems; 

6 ‘‘(C) a device; or 

7 ‘‘(D) other material. 

8 ‘‘(5) ENERGY EFFICIENCY UPGRADE.— 

9 ‘‘(A) IN GENERAL.—The term ‘energy effi10 ciency upgrade’ means any project or activity— 

11 ‘‘(i) the primary purpose of which is 

12 increasing energy efficiency; and 

13 ‘‘(ii) that is carried out on a residen14 tial building. 

15 ‘‘(B) INCLUSIONS.—The term ‘energy effi16 ciency upgrade’ includes the installation or im17 provement of a renewable energy facility for 

18 heating or electricity generation serving a resi19 dential building carried out in conjunction with 

20 an energy efficiency project or activity. 

21 ‘‘(6) PROGRAM ENTITY.—The term ‘program 

22 entity’ means a local government, utility, or other 

23 entity that carries out a financing program under 

24 subsection (e)(2)(A) pursuant to a contract or other 

25 agreement with an eligible entity. 


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1 ‘‘(7) RECIPIENT HOUSEHOLD.—The term ‘re2 cipient household’ means the owner or tenant of a 

3 residential building who receives financing under 

4 this section for an energy efficiency upgrade of the 

5 residential building. 

6 ‘‘(8) RESIDENTIAL BUILDING.— 

7 ‘‘(A) IN GENERAL.—The term ‘residential 

8 building’ means a building used for residential 

9 purposes. 

10 ‘‘(B) INCLUSIONS.—The term ‘residential 

11 building’ includes— 

12 ‘‘(i) a single-family residence; 

13 ‘‘(ii) a multifamily residence composed 

14 not more than 4 units; and 

15 ‘‘(iii) a mixed-use building that in16 cludes not more than 4 residential units. 

17 ‘‘(b) ESTABLISHMENT OF PROGRAM.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall estab19 lish a program under this part under which the Sec20 retary shall make available to eligible entities loans 

21 for the purpose of establishing or expanding pro22 grams that provide to recipient households financing 

23 for energy efficiency upgrades of residential build24 ings. 


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1 ‘‘(2) CONSULTATION.—In establishing the pro2 gram under paragraph (1), the Secretary shall con3 sult, as the Secretary determines to be appropriate, 

4 with stakeholders and the public. 

5 ‘‘(3) NO REQUIREMENT TO PARTICIPATE.—No 

6 eligible entity shall be required to participate in any 

7 manner in the program established under paragraph 

8 (1). 

9 ‘‘(4) DEADLINES.—The Secretary shall— 

10 ‘‘(A) not later than 1 year after the date 

11 of enactment of this section, implement the pro12 gram established under paragraph (1) (includ13 ing soliciting applications from eligible entities 

14 in accordance with subsection (c)); and 

15 ‘‘(B) not later than 2 years after the date 

16 of enactment of this section, disburse the initial 

17 loans provided under this section. 

18 ‘‘(c) APPLICATIONS.— 

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

20 loan under this section, an eligible entity shall sub21 mit to the Secretary an application at such time, in 

22 such manner, and containing such information as 

23 the Secretary may require. 

24 ‘‘(2) SELECTION DATE.—Not later than 21 

25 months after the date of enactment of this section, 


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1 the Secretary shall select eligible entities to receive 

2 the initial loans provided under this section, in ac3 cordance with the requirements described in para4 graph (3). 

5 ‘‘(3) REQUIREMENTS.—In selecting eligible en6 tities to receive loans under this section, the Sec7 retary shall— 

8 ‘‘(A) to the maximum extent practicable, 

9 ensure— 

10 ‘‘(i) that both innovative and estab11 lished approaches to the challenges of fi12 nancing energy efficiency upgrades are 

13 supported; 

14 ‘‘(ii) that energy efficiency upgrades 

15 are conducted and validated to comply with 

16 best practices for work quality, as deter17 mined by the Secretary; 

18 ‘‘(iii) regional diversity among eligible 

19 entities that receive the loans, including 

20 participation by rural States and small 

21 States; 

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1 graphical region, as determined by the Sec2 retary; and 

3 ‘‘(v) the incorporation of an energy 

4 advisor program by, as applicable— 

5 ‘‘(I) eligible entities; or 

6 ‘‘(II) program entities; 

7 ‘‘(B) evaluate applications based primarily 

8 on— 

9 ‘‘(i) the projected reduction in energy 

10 use, as determined in accordance with such 

11 specific and commonly available method12 ology as the Secretary shall establish, by 

13 regulation; 

14 ‘‘(ii) the creditworthiness of the eligi15 ble entity; and 

16 ‘‘(iii) the incorporation of measures 

17 for making the loan repayment system for 

18 recipient households as consumer-friendly 

19 as practicable; 

20 ‘‘(C) evaluate applications based second21 arily on— 

22 ‘‘(i) the extent to which the proposed 

23 financing program of the eligible entity in24 corporates best practices for such a pro25 gram, as determined by the Secretary; 


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1 ‘‘(ii)(I) whether the eligible entity has 

2 created a plan for evaluating the effective3 ness of the proposed financing program; 

4 and 

5 ‘‘(II) whether that plan includes— 

6 ‘‘(aa) a robust strategy for col7 lecting, managing, and analyzing 

8 data, as well as making the data 

9 available to the public; and 

10 ‘‘(bb) experimental studies, which 

11 may include investigations of how 

12 human behavior impacts the effective13 ness of efficiency improvements; 

14 ‘‘(iii) the extent to which Federal 

15 funds are matched by funding from State, 

16 local, philanthropic, private sector, and 

17 other sources; 

18 ‘‘(iv) the extent to which the proposed 

19 financing program will be coordinated and 

20 marketed with other existing or planned 

21 energy efficiency or energy conservation 

22 programs administered by— 

23 ‘‘(I) utilities and rural coopera24 tives; 


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1 ‘‘(II) State, tribal, territorial, or 

2 local governments; or 

3 ‘‘(III) community development fi4 nancial institutions; and 

5 ‘‘(v) such other factors as the Sec6 retary determines to be appropriate; and 

7 ‘‘(D) not provide an advantage or dis8 advantage to applications that include renew9 able energy in the program. 

10 ‘‘(d) ADMINISTRATIVE PROVISIONS.— 

11 ‘‘(1) TERM.—The Secretary shall establish 

12 terms for loans provided to eligible entities under 

13 this section— 

14 ‘‘(A) in a manner that— 

15 ‘‘(i) provides for a high degree of cost 

16 recovery; and 

17 ‘‘(ii) ensures that, with respect to all 

18 loans provided to or by eligible entities 

19 under this section, the loans are competi20 tive with, or superior to, other forms of fi21 nancing for similar purposes; and 

22 ‘‘(B) subject to the condition that the term 

23 of a loan provided to an eligible entity under 

24 this section shall not exceed 35 years. 

25 ‘‘(2) INTEREST RATES.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary, at the discretion of 

3 the Secretary, shall charge interest on a loan 

4 provided to an eligible entity under this section 

5 at a fixed rate equal, or approximately equal, to 

6 the interest rate charged on Treasury securities 

7 of comparable maturity. 

8 ‘‘(B) LEVERAGED LOANS.—The interest 

9 rate and other terms of the loans provided to 

10 eligible entities under this section shall be es11 tablished in a manner that ensures that the 

12 total amount of the loans is equal to not less 

13 than 20 times, and not more than 50 times, an 

14 amount equivalent to 80 percent of the amount 

15 appropriated for administrative and general fi16 nancial support costs pursuant to subsection 

17 (g)(2). 

18 ‘‘(3) NO PENALTY ON EARLY REPAYMENT.— 

19 The Secretary shall not assess any penalty for early 

20 repayment by an eligible entity of a loan provided 

21 under this section. 

22 ‘‘(4) RETURN OF UNUSED PORTION.—As a con23 dition of receipt of a loan under this section, an eli24 gible entity shall agree to return to the general fund 

25 of the Treasury any portion of the loan amount that 


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1 is unused by the eligible entity within a reasonable 

2 period after the date of receipt of the loan, as deter3 mined by the Secretary. 

4 ‘‘(e) USE OF FUNDS.— 

5 ‘‘(1) IN GENERAL.—An eligible entity shall use 

6 a loan provided under this section to establish or ex7 pand 1 or more financing programs— 

8 ‘‘(A) the purpose of which is to enable re9 cipient households to undertake energy effi10 ciency upgrades of residential buildings; 

11 ‘‘(B) that may, at the sole discretion of the 

12 eligible entity, require an outlay of capital by 

13 recipient households in accordance with the 

14 goals of the program under this section; and 

15 ‘‘(C) that incorporate a consumer-friendly 

16 loan repayment approach. 

17 ‘‘(2) STRUCTURE OF FINANCING PROGRAM.—A 

18 financing program of an eligible entity may— 

19 ‘‘(A) consist— 

20 ‘‘(i) primarily or entirely of a financ21 ing program administered by— 

22 ‘‘(I) the applicable State; or 

23 ‘‘(II) a program entity; or 

24 ‘‘(ii) of a combination of programs de25 scribed in clause (i); 


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1 ‘‘(B) rely on financing provided by— 

2 ‘‘(i) the eligible entity; or 

3 ‘‘(ii) a third party, acting through the 

4 eligible entity; and 

5 ‘‘(C) include a provision pursuant to which 

6 a recipient household shall agree to return to 

7 the eligible entity any portion of the assistance 

8 that is unused by the recipient household within 

9 a reasonable period after the date of receipt of 

10 the assistance, as determined by the eligible en11 tity. 

12 ‘‘(3) FORM OF ASSISTANCE.—Assistance from 

13 an eligible entity under this subsection may be pro14 vided in any form, or in accordance with any pro15 gram, authorized by Federal law (including regula16 tions), including in the form of— 

17 ‘‘(A) a revolving loan fund; 

18 ‘‘(B) a credit enhancement structure de19 signed to mitigate the effects of default; or 

20 ‘‘(C) a program that— 

21 ‘‘(i) adopts any other approach for 

22 providing financing for energy efficiency 

23 upgrades producing significant energy effi24 ciency gains; and 


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1 ‘‘(ii) incorporates measures for mak2 ing the loan repayment system for recipi3 ent households as consumer-friendly as 

4 practicable. 

5 ‘‘(4) SCOPE OF ASSISTANCE.—Assistance pro6 vided by an eligible entity under this subsection may 

7 be used to pay for costs associated with carrying out 

8 an energy efficiency upgrade, including materials 

9 and labor. 

10 ‘‘(5) ADDITIONAL ASSISTANCE.—In addition to 

11 the amount of the loan provided to an eligible entity 

12 by the Secretary under subsection (b), the eligible 

13 entity or program entity, as applicable, may provide 

14 to recipient households such assistance under this 

15 subsection as the eligible entity or program entity 

16 considers to be appropriate from any other funds of 

17 the eligible entity or program entity, including funds 

18 provided to the eligible entity by the Secretary for 

19 administrative costs pursuant to this section. 

20 ‘‘(6) LIMITATIONS.— 

21 ‘‘(A) INTEREST RATES.— 

22 ‘‘(i) INTEREST CHARGED BY ELIGIBLE

23 ENTITIES.—The interest rate charged by 

24 an eligible entity on assistance provided 

25 under this subsection— 


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1 ‘‘(I) shall be fixed; and 

2 ‘‘(II) shall not exceed the interest 

3 rate paid by the eligible entity to the 

4 Secretary under subsection (d)(2). 

5 ‘‘(ii) INTEREST CHARGED BY PRO6 GRAM ENTITIES.—A program entity that 

7 receives funding from an eligible entity 

8 under this subsection for the purpose of 

9 capitalizing a residential energy efficiency 

10 financing program may charge interest on 

11 any loan provided by the program entity at 

12 a fixed rate that is as low as practicable, 

13 but not more than 5 percent more than the 

14 applicable interest rate paid by the eligible 

15 entity to the Secretary under subsection 

16 (d)(2). 

17 ‘‘(B) NO PENALTY ON EARLY REPAY18 MENT.—An eligible entity or program entity, as 

19 applicable, shall not assess any penalty for early 

20 repayment by any recipient household to the eli21 gible entity or program entity, as applicable. 

22 ‘‘(f) REPORTS.— 

23 ‘‘(1) ELIGIBLE ENTITIES.— 

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

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1 ally thereafter for the term of the loan, an eligi2 ble entity that receives a loan under this section 

3 shall submit to the Secretary a report describ4 ing the performance of each program and activ5 ity carried out using the loan, including 

6 anonymized loan performance data. 

7 ‘‘(B) REQUIREMENTS.—The Secretary, in 

8 consultation with eligible entities and other 

9 stakeholders (such as lending institutions and 

10 the real estate industry), shall establish such re11 quirements for the reports under this para12 graph as the Secretary determines to be appro13 priate— 

14 ‘‘(i) to ensure that the reports are 

15 clear, consistent, and straightforward; and 

16 ‘‘(ii) taking into account the reporting 

17 requirements for similar programs in 

18 which the eligible entities are participating, 

19 if any. 

20 ‘‘(2) SECRETARY.—The Secretary shall submit 

21 to Congress and make available to the public— 

22 ‘‘(A) not less frequently than once each 

23 year, a report describing the performance of the 

24 program under this section, including a syn25 thesis and analysis of the information provided 


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1 in the reports submitted to the Secretary under 

2 paragraph (1)(A); and 

3 ‘‘(B) on termination of the program under 

4 this section, an assessment of the success of, 

5 and education provided by, the measures car6 ried out by eligible entities during the term of 

7 the program. 

8 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to the Secretary to carry 

10 out this section— 

11 ‘‘(1) $37,500,000 for energy advisor programs; 

12 ‘‘(2) $25,000,000 for administrative and gen13 eral financial support costs to the Secretary of car14 rying out this section; and 

15 ‘‘(3) $37,500,000 for administrative costs to 

16 States in carrying out this section.’’. 

17 (b) REORGANIZATION.— 

18 (1) IN GENERAL.—Part D of title III of the 

19 Energy Policy and Conservation Act (42 U.S.C. 

20 6321 et seq.) is amended— 

21 (A) by redesignating sections 362, 363, 

22 364, 365, and 366 as sections 364, 365, 366, 

23 363, and 362, respectively, and moving the sec24 tions so as to appear in numerical order; 

25 (B) in section 362 (as so redesignated)— 


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1 (i) in paragraph (3)(B)(i), by striking 

2 ‘‘section 367, and’’ and inserting ‘‘section 

3 367 (as in effect on the day before the 

4 date of enactment of the State Energy Ef5 ficiency Programs Improvement Act of 

6 1990 (42 U.S.C. 6201 note; Public Law 

7 101–440)); and’’; and 

8 (ii) in each of paragraphs (4) and (6), 

9 by striking ‘‘section 365(e)(1)’’ each place 

10 it appears and inserting ‘‘section 

11 363(e)(1)’’; 

12 (C) in section 363 (as so redesignated)— 

13 (i) in subsection (b), by striking ‘‘the 

14 provisions of sections 362 and 364 and 

15 subsection (a) of section 363’’ and insert16 ing ‘‘sections 364, 365(a), and 366’’; and 

17 (ii) in subsection (g)(1)(A), in the sec18 ond sentence, by striking ‘‘section 362’’ 

19 and inserting ‘‘section 364’’; and 

20 (D) in section 365 (as so redesignated)— 

21 (i) in subsection (a)— 

22 (I) in paragraph (1), by striking 

23 ‘‘section 362,’’ and inserting ‘‘section 

24 364;’’; and 


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1 (II) in paragraph (2), by striking 

2 ‘‘section 362(b) or (e)’’ and inserting 

3 ‘‘subsection (b) or (e) of section 364’’; 

4 and 

5 (ii) in subsection (b)(2), in the matter 

6 preceding subparagraph (A), by striking 

7 ‘‘section 362(b) or (e)’’ and inserting ‘‘sub8 section (b) or (e) of section 364’’. 

9 (2) CONFORMING AMENDMENTS.—Section 391 

10 of the Energy Policy and Conservation Act (42 

11 U.S.C. 6371) is amended— 

12 (A) in paragraph (2)(M), by striking ‘‘sec13 tion 365(e)(2)’’ and inserting ‘‘section 

14 363(e)(2)’’; and 

15 (B) in paragraph (10), by striking ‘‘section 

16 362 of this Act’’ and inserting ‘‘section 364’’. 

17 (3) CLERICAL AMENDMENT.—The table of con18 tents of the Energy Policy and Conservation Act (42 

19 U.S.C. 6201 note; Public Law 94–163) is amended 

20 by striking the items relating to part D of title III 

21 and inserting the following: 

‘‘PART D—STATE ENERGY CONSERVATION PROGRAMS

‘‘Sec. 361. Findings and purpose. 

‘‘Sec. 362. Definitions. 

‘‘Sec. 363. General provisions. 

‘‘Sec. 364. State energy conservation plans. 

‘‘Sec. 365. Federal assistance to States. 

‘‘Sec. 366. State energy efficiency goals. 

‘‘Sec. 367. Loans for residential building energy efficiency upgrades.’’. 


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1 Subtitle G—Smart Energy and 

2 Water Efficiency 

3 SEC. 3061. SMART ENERGY AND WATER EFFICIENCY PILOT 

4 PROGRAM. 

5 Subtitle A of title IX of the Energy Policy Act of 

6 2005 (42 U.S.C. 16191 et seq.) is amended by adding at 

7 the end the following: 

8 ‘‘SEC. 918. SMART ENERGY AND WATER EFFICIENCY PILOT 

9 PROGRAM. 

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

11 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en12 tity’ means— 

13 ‘‘(A) a utility; 

14 ‘‘(B) a municipality; 

15 ‘‘(C) a water district; 

16 ‘‘(D) an Indian tribe or Alaska Native vil17 lage; and 

18 ‘‘(E) any other authority that provides 

19 water, wastewater, or water reuse services. 

20 ‘‘(2) SMART ENERGY AND WATER EFFICIENCY

21 PILOT PROGRAM.—The term ‘smart energy and 

22 water efficiency pilot program’ or ‘pilot program’ 

23 means the pilot program established under sub24 section (b). 


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1 ‘‘(b) SMART ENERGY AND WATER EFFICIENCY

2 PILOT PROGRAM.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall estab4 lish and carry out a smart energy and water effi5 ciency pilot program in accordance with this section. 

6 ‘‘(2) PURPOSE.—The purpose of the smart en7 ergy and water efficiency pilot program is to award 

8 grants to eligible entities to demonstrate unique, ad9 vanced, or innovative technology-based solutions that 

10 will— 

11 ‘‘(A) increase the energy efficiency of 

12 water, wastewater, and water reuse systems; 

13 ‘‘(B) improve energy efficiency of water, 

14 wastewater, and water reuse systems to help 

15 communities across the United States make 

16 measurable progress in conserving water, saving 

17 energy, and reducing costs; 

18 ‘‘(C) support the implementation of inno19 vative and unique processes and the installation 

20 of established advanced automated systems that 

21 provide real-time data on energy and water; and 

22 ‘‘(D) improve energy-water conservation 

23 and quality and predictive maintenance through 

24 technologies that utilize internet connected 


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1 technologies, including sensors, intelligent gate2 ways, and security embedded in hardware. 

3 ‘‘(3) PROJECT SELECTION.— 

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

5 make competitive, merit-reviewed grants under 

6 the pilot program to not less than 3, but not 

7 more than 5, eligible entities. 

8 ‘‘(B) SELECTION CRITERIA.—In selecting 

9 an eligible entity to receive a grant under the 

10 pilot program, the Secretary shall consider— 

11 ‘‘(i) energy and cost savings; 

12 ‘‘(ii) the uniqueness, commercial via13 bility, and reliability of the technology to 

14 be used; 

15 ‘‘(iii) the degree to which the project 

16 integrates next-generation sensors soft17 ware, analytics, and management tools; 

18 ‘‘(iv) the anticipated cost-effectiveness 

19 of the pilot project through measurable en20 ergy efficiency savings, water savings or 

21 reuse, and infrastructure costs averted; 

22 ‘‘(v) whether the technology can be 

23 deployed in a variety of geographic regions 

24 and the degree to which the technology can 

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1 tions ranging in scale from small towns to 

2 large cities, including tribal communities; 

3 ‘‘(vi) whether the technology has been 

4 successfully deployed elsewhere; 

5 ‘‘(vii) whether the technology was 

6 sourced from a manufacturer based in the 

7 United States; and 

8 ‘‘(viii) whether the project will be 

9 completed in 5 years or less. 

10 ‘‘(C) APPLICATIONS.— 

11 ‘‘(i) IN GENERAL.—Subject to clause 

12 (ii), an eligible entity seeking a grant 

13 under the pilot program shall submit to 

14 the Secretary an application at such time, 

15 in such manner, and containing such infor16 mation as the Secretary determines to be 

17 necessary. 

18 ‘‘(ii) CONTENTS.—An application 

19 under clause (i) shall, at a minimum, in20 clude— 

21 ‘‘(I) a description of the project; 

22 ‘‘(II) a description of the tech23 nology to be used in the project; 


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1 ‘‘(III) the anticipated results, in2 cluding energy and water savings, of 

3 the project; 

4 ‘‘(IV) a comprehensive budget for 

5 the project; 

6 ‘‘(V) the names of the project 

7 lead organization and any partners; 

8 ‘‘(VI) the number of users to be 

9 served by the project; 

10 ‘‘(VII) a description of the ways 

11 in which the proposal would meet per12 formance measures established by the 

13 Secretary; and 

14 ‘‘(VIII) any other information 

15 that the Secretary determines to be 

16 necessary to complete the review and 

17 selection of a grant recipient. 

18 ‘‘(4) ADMINISTRATION.— 

19 ‘‘(A) IN GENERAL.—Not later than 300 

20 days after the date of enactment of this section, 

21 the Secretary shall select grant recipients under 

22 this section. 

23 ‘‘(B) EVALUATIONS.— 

24 ‘‘(i) ANNUAL EVALUATIONS.—The 

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1 uation of each project for which a grant is 

2 provided under this section that meets per3 formance measures and benchmarks devel4 oped by the Secretary, consistent with the 

5 purposes of this section. 

6 ‘‘(ii) REQUIREMENTS.—Consistent 

7 with the performance measures and bench8 marks developed under clause (i), in car9 rying out an evaluation under that clause, 

10 the Secretary shall— 

11 ‘‘(I) evaluate the progress and 

12 impact of the project; and 

13 ‘‘(II) assesses the degree to 

14 which the project is meeting the goals 

15 of the pilot program. 

16 ‘‘(C) TECHNICAL AND POLICY ASSIST17 ANCE.—On the request of a grant recipient, the 

18 Secretary shall provide technical and policy as19 sistance. 

20 ‘‘(D) BEST PRACTICES.—The Secretary 

21 shall make available to the public through the 

22 Internet and other means the Secretary con23 siders to be appropriate— 

24 ‘‘(i) a copy of each evaluation carried 

25 out under subparagraph (B); and 


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1 ‘‘(ii) a description of any best prac2 tices identified by the Secretary as a result 

3 of those evaluations. 

4 ‘‘(E) REPORT TO CONGRESS.—The Sec5 retary shall submit to Congress a report con6 taining the results of each evaluation carried 

7 out under subparagraph (B). 

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

9 is authorized to be appropriated to carry out this section 

10 $15,000,000, to remain available until expended.’’. 

11 Subtitle H—Regional Energy 

12 Partnerships 

13 SEC. 3071. DEFINITIONS. 

14 In this subtitle: 

15 (1) COOPERATIVE AGREEMENT.—The term ‘‘co16 operative agreement’’ has the meaning given the 

17 term in sections 6302 and 6305 of title 31, United 

18 States Code. 

19 (2) SECRETARIES.—The term ‘‘Secretaries’’ 

20 means— 

21 (A) the Secretary, acting through the As22 sistant Secretary of the Office of Electricity De23 livery and Energy Reliability in consultation 

24 with the Assistant Secretary of Energy Effi25 ciency and Renewable Energy, the Assistant 


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1 Secretary of Fossil Energy, and the Director of 

2 the Office of Nuclear Energy, Science, and 

3 Technology Programs; and 

4 (B) the Secretary of the Interior, acting 

5 through the Assistant Secretary for Land and 

6 Minerals Management in consultation with the 

7 Director of the Bureau of Land Management, 

8 the Director of the Bureau of Ocean Energy 

9 Management, the Assistant Secretary for In10 dian Affairs, and the Assistant Secretary for 

11 Fish and Wildlife and Parks. 

12 (3) STATE.—The term ‘‘State’’ means— 

13 (A) a State; 

14 (B) the District of Columbia; 

15 (C) the Commonwealth of Puerto Rico; 

16 and 

17 (D) any other territory or possession of the 

18 United States. 

19 SEC. 3072. REGIONAL ENERGY PARTNERSHIPS. 

20 (a) IN GENERAL.—The Secretaries shall provide as21 sistance in accordance with this section for the purpose 

22 of developing energy strategies and plans that help har23 monize and promote national, regional, and State energy 

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1 tems to mitigate risks and prepare for emerging energy 

2 challenges. 

3 (b) TECHNICAL ASSISTANCE.—The Secretaries may 

4 provide such technical assistance to States, political sub5 divisions of States, substate regional organizations (in6 cluding organizations that cross State boundaries), 

7 multistate regional organizations, Indian tribes, and non8 profit organizations as the Secretaries determine appro9 priate to promote— 

10 (1) the development and improvement of re11 gional energy strategies, where appropriate, and 

12 plans that sustain and promote energy system mod13 ernization across the United States; 

14 (2) investment in energy infrastructure, techno15 logical capacity, innovation, and workforce develop16 ment to keep pace with the changing energy eco17 system; 

18 (3) structural transformation of the financial, 

19 regulatory, legal, and institutional systems that gov20 ern energy planning, production, and delivery within 

21 States and regions; and 

22 (4) public-private partnerships for the imple23 mentation of regional energy strategies and plans. 

24 (c) COOPERATIVE AGREEMENTS.— 


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1 (1) IN GENERAL.—The Secretaries may enter 

2 into cooperative agreements with one or more States 

3 and Indian tribes, on a regional basis, to develop 

4 and implement strategies and plans to address the 

5 energy challenges of States, Indian tribes, and re6 gions. 

7 (2) REQUIREMENTS.—A cooperative agreement 

8 entered into under this subsection shall include pro9 visions covering or providing— 

10 (A) the purpose and goals of the coopera11 tive agreement, such as advancing energy effi12 ciency, clean energy, fuel and supply diversity, 

13 energy system resiliency, economic development, 

14 or other goals to make measurable, significant 

15 progress toward specified metrics and objectives 

16 that are agreed to by the States or Indian 

17 tribes and the Secretaries; 

18 (B) the roles and responsibilities of the 

19 States or Indian tribes and the Secretaries for 

20 various functions of the cooperative agreement, 

21 including outreach, communication, resources, 

22 and capabilities; 

23 (C) a comprehensive framework for the de24 velopment of energy strategies and plans for 

25 States, Indian tribes, or regions; 


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1 (D) timeframes with associated metrics 

2 and objectives; 

3 (E) a governance structure to resolve con4 flicts and facilitate decisionmaking consistent 

5 with underlying authorities; and 

6 (F) other provisions determined necessary 

7 by the Secretaries, in consultation with the 

8 States or Indian tribes, to achieve the purposes 

9 described in paragraph (1). 

10 (d) STAFF.— 

11 (1) IN GENERAL.—Not later than 30 days after 

12 the date of the entering into a cooperative agree13 ment under subsection (c), the Secretaries shall, as 

14 appropriate, assign or employ individuals who have 

15 expertise in the technical and regulatory issues relat16 ing to the cooperative agreement, including par17 ticular expertise in (as applicable)— 

18 (A) energy systems integration; 

19 (B) renewable energy and energy effi20 ciency; 

21 (C) innovative financing mechanisms; 

22 (D) utility regulatory policy; 

23 (E) modeling and analysis; 

24 (F) facilitation and arbitration; 


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1 (G) energy assurance and emergency pre2 paredness; and 

3 (H) cyber and physical security of energy 

4 systems. 

5 (2) DUTIES.—Each individual assigned to carry 

6 out a cooperative agreement under paragraph (1) 

7 shall— 

8 (A) report to a location in the applicable 

9 State, Indian tribe, or region not later than 90 

10 days after the date of assignment; 

11 (B) be responsible for issues and technical 

12 assistance relating to the cooperative agree13 ment; 

14 (C) participate as part of the team of per15 sonnel working on developing and implementing 

16 the applicable regional energy strategy and 

17 plan; and 

18 (D) build capacity within the State, Indian 

19 tribe, or region to continue to implement the 

20 goals of this subtitle after the expiration of the 

21 cooperative agreement. 

22 (e) COMPREHENSIVE FRAMEWORK.—Under a coop23 erative agreement, a comprehensive framework shall be 

24 developed that identifies opportunities and actions across 


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1 various energy sectors and cross-cutting issue areas, in2 cluding— 

3 (1) end-use efficiency; 

4 (2) energy supply, including electric generation 

5 and fuels; 

6 (3) energy storage and delivery; 

7 (4) transportation; 

8 (5) technical integration, including standards 

9 and interdependencies; 

10 (6) institutional structures; 

11 (7) regulatory policies; 

12 (8) financial incentives; and 

13 (9) market mechanisms. 

14 (f) AWARDS.— 

15 (1) DEFINITIONS.—In this subsection: 

16 (A) APPLICATION GROUP.—The term ‘‘ap17 plication group’’ means a group of States or In18 dian tribes that have— 

19 (i) entered into a cooperative agree20 ment, on a regional basis, with the Secre21 taries under subsection (c); and 

22 (ii) submitted an application for an 

23 award under paragraph (2)(A). 


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1 (B) PARTNER STATE.—The term ‘‘partner 

2 State’’ means a State or Indian tribe that is 

3 part of an application group. 

4 (2) APPLICATIONS.— 

5 (A) IN GENERAL.—Subject to subpara6 graph (B), an application group may apply to 

7 the Secretaries for awards under this sub8 section. 

9 (B) INDIVIDUAL STATES.—An individual 

10 State or Indian tribe that has entered into a co11 operative agreement with the Secretaries under 

12 subsection (c) may apply to the Secretaries for 

13 an award under this subsection if the State or 

14 Indian tribe demonstrates to the Secretaries the 

15 uniqueness of the energy challenges facing the 

16 State or Indian tribe. 

17 (3) BASE AMOUNT.—Subject to paragraph (4), 

18 the Secretaries shall provide 6 awards under this 

19 subsection, with a base amount of $20,000,000 for 

20 each award. 

21 (4) BONUS AMOUNT FOR APPLICATION

22 GROUPS.— 

23 (A) IN GENERAL.—Subject to subpara24 graph (B), the Secretaries shall increase the 

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1 section to an application group for a successful 

2 application under paragraph (2)(A) by the 

3 quotient obtained by dividing— 

4 (i) the product obtained by multi5 plying— 

6 (I) the number of partner States 

7 in the application group; and 

8 (II) $100,000,000; by 

9 (ii) the total number of partner States 

10 of all successful applications under this 

11 subsection. 

12 (B) MAXIMUM AMOUNT.—The amount of a 

13 bonus determined under subparagraph (A) shall 

14 not exceed an amount that represents 

15 $5,000,000 for each partner State that is a 

16 member of the relevant application group. 

17 (5) LIMITATION.—A State or Indian tribe shall 

18 not be part of more than 1 award under this sub19 section. 

20 (6) SELECTION CRITERIA.—In selecting appli21 cations for awards under this subsection, the Secre22 taries shall consider— 

23 (A) existing commitments from States or 

24 Indian tribes, such as memoranda of under25 standing; 


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1 (B) for States that are part of the contig2 uous 48 States, the number of contiguous 

3 States involved that cover a region; 

4 (C) the diversity of the regions represented 

5 by all applications; 

6 (D) the amount of cost-share or in-kind 

7 contributions from States or Indian tribes; 

8 (E) the scope and focus of regional and 

9 State programs and strategies, with an empha10 sis on energy system resiliency and grid mod11 ernization, efficiency, and clean energy; 

12 (F) a management and oversight plan to 

13 ensure that objectives are met; 

14 (G) an outreach plan for the inclusion of 

15 stakeholders in the process for developing and 

16 implementing State or regional energy strate17 gies and plans; 

18 (H) the inclusion of tribal entities; 

19 (I) plans to fund and sustain activities 

20 identified in regional energy strategies and 

21 plans; and 

22 (J) the clarity of roles and responsibilities 

23 of each State and the Secretaries. 

24 (7) USE OF AWARDS.— 


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1 (A) IN GENERAL.—Awards provided under 

2 this subsection shall be used to achieve the pur3 pose of this section, including by— 

4 (i) conducting technical analyses, re5 source studies, and energy system base6 lines; 

7 (ii) convening and providing education 

8 to stakeholders on emerging energy issues; 

9 (iii) building decision support and 

10 planning tools; and 

11 (iv) improving communication between 

12 and participation of stakeholders. 

13 (B) LIMITATION.—Awards provided under 

14 this subsection shall not be used for— 

15 (i) capitalization of green banks or 

16 loan guarantees; or 

17 (ii) building facilities or funding cap18 ital projects. 

19 SEC. 3073. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) IN GENERAL.—There is authorized to be appro21 priated to carry out this subtitle $250,000,000, to remain 

22 available until expended. 

23 (b) ALLOCATION.—Of the amount authorized to be 

24 appropriated under subsection (a)— 


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1 (1) $120,000,000 shall be used for the base 

2 amount of awards under section 3072(f)(3); 

3 (2) $100,000,000 shall be used for the bonus 

4 amount of awards under section 3072(f)(4); and 

5 (3) $30,000,000 shall be for the administration 

6 of this subtitle, including— 

7 (A) the assignment of staff under section 

8 3072(d); and 

9 (B) if the Secretaries determine appro10 priate, the sharing of best practices from re11 gional partnerships by parties to cooperative 

12 agreements entered into under this subtitle. 

13 (c) STATE ENERGY OFFICES.—Funds provided to a 

14 State under this subtitle shall be provided to the office 

15 within the State that is responsible for developing the 

16 State energy plan for the State under part D of title III 

17 of the Energy Policy and Conservation Act (42 U.S.C. 

18 6321 et seq.). 

19 (d) MAINTENANCE OF FUNDING.—The funding pro20 vided to States under this subtitle shall supplement (and 

21 not supplant) funding provided under part D of title III 

22 of the Energy Policy and Conservation Act (42 U.S.C. 

23 6321 et seq.). 


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1 Subtitle I—Energy Productivity 

2 Innovation Challenge 

3 SEC. 3081. DEFINITIONS. 

4 In this subtitle: 

5 (1) ENERGY PRODUCTIVITY.—The term ‘‘en6 ergy productivity’’ means, in the case of a State or 

7 Indian tribe, the gross State or tribal product per 

8 British thermal unit of energy consumed in the 

9 State or tribal land of the Indian tribe, respectively. 

10 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

11 has the meaning given the term in section 4 of the 

12 Indian Self-Determination and Education Assistance 

13 Act (25 U.S.C. 450b). 

14 (3) STATE.—The term ‘‘State’’ has the mean15 ing given the term in section 3 of the Energy Policy 

16 and Conservation Act (42 U.S.C. 6202). 

17 SEC. 3082. PHASE 1: INITIAL ALLOCATION OF GRANTS TO 

18 STATES. 

19 (a) IN GENERAL.—Not later than 30 days after the 

20 date of enactment of this Act, the Secretary shall issue 

21 an invitation to States to submit plans to participate in 

22 an electric and thermal energy productivity challenge in 

23 accordance with this section. 

24 (b) GRANTS.— 


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1 (1) IN GENERAL.—Subject to section 3085, the 

2 Secretary shall use funds made available under sec3 tion 3086(b)(1) to provide an initial allocation of 

4 grants to not more than 25 States. 

5 (2) AMOUNT.—The amount of a grant provided 

6 to a State under this section shall be not less than 

7 $500,000 nor more than $1,750,000. 

8 (c) SUBMISSION OF PLANS.—To receive a grant 

9 under this section, not later than 90 days after the date 

10 of issuance of the invitation under subsection (a), a State 

11 (in consultation with energy utilities, regulatory bodies, 

12 and others) shall submit to the Secretary an application 

13 to receive the grant by submitting a revised State energy 

14 conservation plan under section 362 of the Energy Policy 

15 and Conservation Act (42 U.S.C. 6322). 

16 (d) DECISION BY SECRETARY.— 

17 (1) BASIS.—The Secretary shall base the deci18 sion of the Secretary on an application submitted 

19 under this section on— 

20 (A) plans for improvement in electric and 

21 thermal energy productivity consistent with this 

22 subtitle; and 

23 (B) other factors determined appropriate 

24 by the Secretary, including geographic diversity. 

25 (2) RANKING.—The Secretary shall— 


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1 (A) rank revised plans submitted under 

2 this section in order of the greatest to least 

3 likely contribution to improving energy produc4 tivity in the State; and 

5 (B) provide grants under this section in 

6 accordance with the ranking and the scale and 

7 scope of a plan. 

8 (e) PLAN REQUIREMENTS.—A plan submitted under 

9 subsection (c) shall provide— 

10 (1) a description of the manner in which— 

11 (A) energy savings will be monitored and 

12 verified and energy productivity improvements 

13 will be calculated using inflation-adjusted dol14 lars; 

15 (B) a statewide baseline of energy use and 

16 potential resources for calendar year 2010 will 

17 be established to measure improvements; 

18 (C) the plan will promote achievement of 

19 energy savings and demand reduction goals; 

20 (D) public and private sector investments 

21 in energy efficiency will be leveraged with avail22 able Federal funding; and 

23 (E) the plan will not cause cost-shifting 

24 among utility customer classes or negatively im25 pact low-income populations; and 


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1 (2) an assurance that— 

2 (A) the State energy office required to sub3 mit the plan, the energy utilities in the State 

4 participating in the plan, and the State public 

5 service commission are cooperating and coordi6 nating programs and activities under this sub7 title; 

8 (B) the State is cooperating with local 

9 units of government, Indian tribes, and energy 

10 utilities to expand programs as appropriate; 

11 and 

12 (C) grants provided under this subtitle will 

13 be used to supplement and not supplant Fed14 eral, State, or ratepayer-funded programs or ac15 tivities in existence on the date of enactment of 

16 this Act. 

17 (f) USES.—A State may use grants provided under 

18 this section to promote— 

19 (1) the expansion of policies and programs that 

20 will advance industrial energy efficiency, waste heat 

21 recovery, combined heat and power, and waste heat22 to-power utilization; 

23 (2) the expansion of policies and programs that 

24 will advance energy efficiency construction and ret25 rofits for public and private commercial buildings 


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1 (including schools, hospitals, and residential build2 ings, including multifamily buildings) such as 

3 through expanded energy service performance con4 tracts, equivalent utility energy service contracts, 

5 zero net-energy buildings, and improved building en6 ergy efficiency codes; 

7 (3) the expansion of residential policies and 

8 programs designed to implement best practice poli9 cies and tools for residential retrofit programs 

10 that— 

11 (A) reduce administrative and delivery 

12 costs for energy efficiency projects; 

13 (B) encourage streamlining and automa14 tion to support contractor engagement; and 

15 (C) implement systems that encourage pri16 vate investment and market innovation; 

17 (4) the establishment or expansion of incentives 

18 in the electric utility sector to enhance demand re19 sponse and energy efficiency, including consideration 

20 of additional incentives to promote the purposes of 

21 section 111(d) of the Public Utility Regulatory Poli22 cies Act of 1978 (16 U.S.C. 2621(d)), such as ap23 propriate, cost-effective policies regarding rate struc24 tures, grid improvements, behavior change, combined 

25 heat and power and waste heat-to-power incentives, 


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1 financing of energy efficiency programs, data use in2 centives, district heating, and regular energy audits; 

3 and 

4 (5) leadership by example, in which State ac5 tivities involving both facilities and vehicle fleets can 

6 be a model for other action to promote energy effi7 ciency and can be expanded with Federal grants pro8 vided under this subtitle. 

9 SEC. 3083. PHASE 2: SUBSEQUENT ALLOCATION OF GRANTS 

10 TO STATES. 

11 (a) REPORTS.—Not later than 18 months after the 

12 receipt of grants under section 3082, each State (in con13 sultation with other parties described in subsection 

14 (b)(3)(F)) that received grants under section 3082 may 

15 submit to the Secretary a report that describes— 

16 (1) the performance of the programs and activi17 ties carried out with the grants; and 

18 (2) in consultation with other parties described 

19 in subsection (b)(3)(F), the manner in which addi20 tional funds would be used to carry out programs 

21 and activities to promote the purposes of this sub22 title. 

23 (b) GRANTS.— 

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

25 after the date of the receipt of the reports required 


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1 under subsection (a), subject to section 3085, the 

2 Secretary shall use amounts made available under 

3 section 3086(b)(2) to provide grants to not more 

4 than 6 States to carry out the programs and activi5 ties described in subsection (a)(2). 

6 (2) AMOUNT.—The amount of a grant provided 

7 to a State under this section shall be not more than 

8 $15,000,000. 

9 (3) BASIS.—The Secretary shall base the deci10 sion of the Secretary to provide grants under this 

11 section on— 

12 (A) the performance of the State in the 

13 programs and activities carried out with grants 

14 provided under section 3082; 

15 (B) the potential of the programs and ac16 tivities described in subsection (a)(2) to achieve 

17 the purposes of this subtitle; 

18 (C) the desirability of maintaining a total 

19 project portfolio that is geographically and 

20 functionally diverse; 

21 (D) the amount of non-Federal funds that 

22 are leveraged as a result of the grants to ensure 

23 that Federal dollars are leveraged effectively; 


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1 (E) plans for continuation of the improve2 ments after the receipt of grants under this 

3 subtitle; and 

4 (F) demonstrated effort by the State to in5 volve diverse groups, including— 

6 (i) investor-owned, cooperative, and 

7 public power utilities; 

8 (ii) local governments; and 

9 (iii) nonprofit organizations. 

10 SEC. 3084. ALLOCATION OF GRANTS TO INDIAN TRIBES. 

11 (a) IN GENERAL.—Not later than 30 days after the 

12 date of enactment of this Act, the Secretary shall invite 

13 Indian tribes to submit plans to participate in an electric 

14 and thermal energy productivity challenge in accordance 

15 with this section. 

16 (b) SUBMISSION OF PLANS.—To receive a grant 

17 under this section, not later than 90 days after the date 

18 of issuance of the invitation under subsection (a), an In19 dian tribe shall submit to the Secretary a plan to increase 

20 electric and thermal energy productivity by the Indian 

21 tribe. 

22 (c) DECISION BY SECRETARY.— 

23 (1) IN GENERAL.—Not later than 90 days after 

24 the submission of plans under subsection (b), the 


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1 Secretary shall make a final decision on the alloca2 tion of grants under this section. 

3 (2) BASIS.—The Secretary shall base the deci4 sion of the Secretary under paragraph (1) on— 

5 (A) plans for improvement in electric and 

6 thermal energy productivity consistent with this 

7 subtitle; 

8 (B) plans for continuation of the improve9 ments after the receipt of grants under this 

10 subtitle; and 

11 (C) other factors determined appropriate 

12 by the Secretary, including— 

13 (i) geographic diversity; and 

14 (ii) size differences among Indian 

15 tribes. 

16 (3) LIMITATION.—An individual Indian tribe 

17 shall not receive more than 20 percent of the total 

18 amount available to carry out this section. 

19 SEC. 3085. ADMINISTRATION. 

20 (a) INDEPENDENT EVALUATION.—To evaluate pro21 gram performance and effectiveness under this subtitle, 

22 the Secretary shall consult with the National Research 

23 Council regarding requirements for data and evaluation 

24 for recipients of grants under this subtitle. 


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1 (b) COORDINATION WITH STATE ENERGY CON2 SERVATION PROGRAMS.— 

3 (1) IN GENERAL.—Grants to States under this 

4 subtitle shall be provided through additional funding 

5 to carry out State energy conservation programs 

6 under part D of title III of the Energy Policy and 

7 Conservation Act (42 U.S.C. 6321 et seq.). 

8 (2) RELATIONSHIP TO STATE ENERGY CON9 SERVATION PROGRAMS.— 

10 (A) IN GENERAL.—A grant provided to a 

11 State under this subtitle shall be used to sup12 plement (and not supplant) funds provided to 

13 the State under part D of title III of the En14 ergy Policy and Conservation Act (42 U.S.C. 

15 6321 et seq.). 

16 (B) MINIMUM FUNDING.—A grant shall 

17 not be provided to a State for a fiscal year 

18 under this subtitle if the amount of funding 

19 provided to all State grantees under the base 

20 formula for the fiscal year under part D of title 

21 III of the Energy Policy and Conservation Act 

22 (42 U.S.C. 6321 et seq.) is less than 

23 $50,000,000. 


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1 (c) VOLUNTARY PARTICIPATION.—The participation 

2 of a State in a challenge established under this subtitle 

3 shall be voluntary. 

4 SEC. 3086. AUTHORIZATION OF APPROPRIATIONS. 

5 (a) IN GENERAL.—There is authorized to be appro6 priated to carry out this subtitle $100,000,000 for the pe7 riod of fiscal years 2016 and 2017. 

8 (b) ALLOCATION.—Of the total amount of funds 

9 made available under subsection (a)— 

10 (1) 30 percent shall be used to provide an ini11 tial allocation of grants to States under section 

12 3082; 

13 (2) 61 percent shall be used to provide a subse14 quent allocation of grants to States under section 

15 3083; 

16 (3) 4 percent shall be used to make grants to 

17 Indian tribes under section 3084; and 

18 (4) 5 percent shall be available to the Secretary 

19 for the cost of administration and technical support 

20 to carry out this subtitle. 

21 Subtitle J—Smart Buildings 

22 SEC. 3091. DEFINITIONS. 

23 (a) DEFINITIONS.—In this section: 


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1 (1) PROGRAM.—The term ‘‘program’’ means 

2 the Federal Smart Building Program established 

3 under subsection (b)(1). 

4 (2) SMART BUILDING.—The term ‘‘smart build5 ing’’ means a building, or collection of buildings, 

6 with an energy system that— 

7 (A) is flexible and automated; 

8 (B) has extensive operational monitoring 

9 and communication connectivity, allowing re10 mote monitoring and analysis of all building 

11 functions; 

12 (C) takes a systems-based approach in in13 tegrating the overall building operations for 

14 control of energy generation, consumption, and 

15 storage; 

16 (D) communicates with utilities and other 

17 third-party commercial entities, if appropriate; 

18 and 

19 (E) is cybersecure. 

20 (3) SMART BUILDING ACCELERATOR.—The 

21 term ‘‘smart building accelerator’’ means an initia22 tive that is designed to demonstrate specific innova23 tive policies and approaches— 

24 (A) with clear goals and a clear timeline; 

25 and 


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1 (B) that, on successful demonstration, 

2 would accelerate investment in energy effi3 ciency. 

4 (b) FEDERAL SMART BUILDING PROGRAM.— 

5 (1) ESTABLISHMENT.—Not later than 1 year 

6 after the date of enactment of this Act, the Sec7 retary shall establish a program to be known as the 

8 ‘‘Federal Smart Building Program’’— 

9 (A) to implement smart building tech10 nology; and 

11 (B) to demonstrate the costs and benefits 

12 of smart buildings. 

13 (2) SELECTION.— 

14 (A) IN GENERAL.—The Secretary shall co15 ordinate the selection of not fewer than 1 build16 ing from among each of several key Federal 

17 agencies, as described in paragraph (4), to com18 pose an appropriately diverse set of smart 

19 buildings based on size, type, and geographic lo20 cation. 

21 (B) INCLUSION OF COMMERCIALLY OPER22 ATED BUILDINGS.—In making selections under 

23 subparagraph (A), the Secretary may include 

24 buildings that are owned by the Federal Gov25 ernment but are commercially operated. 


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1 (3) TARGETS.—Not later than 18 months after 

2 the date of enactment of this Act, the Secretary 

3 shall establish targets for the number of smart 

4 buildings to be commissioned and evaluated by key 

5 Federal agencies by 3 years and 6 years after the 

6 date of enactment of this Act. 

7 (4) FEDERAL AGENCY DESCRIBED.—The key 

8 Federal agencies referred to in this subsection shall 

9 include buildings operated by— 

10 (A) the Department of the Army; 

11 (B) the Department of the Navy; 

12 (C) the Department of the Air Force; 

13 (D) the Department; 

14 (E) the Department of the Interior; 

15 (F) the Department of Veterans Affairs; 

16 and 

17 (G) the General Services Administration. 

18 (5) REQUIREMENT.—In implementing the pro19 gram, the Secretary shall leverage existing financing 

20 mechanisms including energy savings performance 

21 contracts, utility energy service contracts, and an22 nual appropriations. 

23 (6) EVALUATION.—Using the guidelines of the 

24 Federal Energy Management Program relating to 

25 whole-building evaluation, measurement, and 


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1 verification, the Secretary shall evaluate the costs 

2 and benefits of the buildings selected under para3 graph (2), including an identification of— 

4 (A) which advanced building tech5 nologies— 

6 (i) are most cost-effective; and 

7 (ii) show the most promise for— 

8 (I) increasing building energy 

9 savings; 

10 (II) increasing service perform11 ance to building occupants; 

12 (III) reducing environmental im13 pacts; and 

14 (IV) establishing cybersecurity; 

15 and 

16 (B) any other information the Secretary 

17 determines to be appropriate. 

18 (7) AWARDS.—The Secretary may expand 

19 awards made under the Federal Energy Manage20 ment Program and the Better Building Challenge to 

21 recognize specific agency achievements in accel22 erating the adoption of smart building technologies. 

23 (c) SURVEY OF PRIVATE SECTOR SMART BUILD24 INGS.— 


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1 (1) SURVEY.—The Secretary shall conduct a 

2 survey of privately owned smart buildings through3 out the United States, including commercial build4 ings, laboratory facilities, hospitals, multifamily resi5 dential buildings, and buildings owned by nonprofit 

6 organizations and institutions of higher education. 

7 (2) SELECTION.—From among the smart build8 ings surveyed under paragraph (1), the Secretary 

9 shall select not fewer than 1 building each from an 

10 appropriate range of building sizes, types, and geo11 graphic locations. 

12 (3) EVALUATION.—Using the guidelines of the 

13 Federal Energy Management Program relating to 

14 whole-building evaluation, measurement, and 

15 verification, the Secretary shall evaluate the costs 

16 and benefits of the buildings selected under para17 graph (2), including an identification of— 

18 (A) which advanced building technologies 

19 and systems— 

20 (i) are most cost-effective; and 

21 (ii) show the most promise for— 

22 (I) increasing building energy 

23 savings; 

24 (II) increasing service perform25 ance to building occupants; 


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1 (III) reducing environmental im2 pacts; and 

3 (IV) establishing cybersecurity; 

4 and 

5 (B) any other information the Secretary 

6 determines to be appropriate. 

7 (d) LEVERAGING EXISTING PROGRAMS.— 

8 (1) BETTER BUILDING CHALLENGE.—As part 

9 of the Better Building Challenge of the Department, 

10 the Secretary, in consultation with major private 

11 sector property owners, shall develop smart building 

12 accelerators to demonstrate innovative policies and 

13 approaches that will accelerate the transition to 

14 smart buildings in the public, institutional, and com15 mercial buildings sectors. 

16 (2) RESEARCH AND DEVELOPMENT.— 

17 (A) IN GENERAL.—The Secretary shall 

18 conduct research and development to address 

19 key barriers to the integration of advanced 

20 building technologies and to accelerate the tran21 sition to smart buildings. 

22 (B) INCLUSION.—The research and devel23 opment conducted under subparagraph (A) 

24 shall include research and development on— 


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1 (i) achieving whole-building, systems2 level efficiency through smart system and 

3 component integration; 

4 (ii) improving physical components, 

5 such as sensors and controls, to be adapt6 ive, anticipatory, and networked; 

7 (iii) reducing the cost of key compo8 nents to accelerate the adoption of smart 

9 building technologies; 

10 (iv) data management, including the 

11 capture and analysis of data and the inter12 operability of the energy systems; 

13 (v) protecting against cybersecurity 

14 threats and addressing security 

15 vulnerabilities of building systems or 

16 equipment; 

17 (vi) business models, including how 

18 business models may limit the adoption of 

19 smart building technologies and how to 

20 support transactive energy; 

21 (vii) integration and application of 

22 combined heat and power systems and en23 ergy storage for resiliency; 

24 (viii) characterization of buildings and 

25 components; 


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1 (ix) consumer and utility protections; 

2 (x) continuous management, including 

3 the challenges of managing multiple energy 

4 systems and optimizing systems for dis5 parate stakeholders; and 

6 (xi) other areas of research and devel7 opment, as determined appropriate by the 

8 Secretary. 

9 (e) REPORT.—Not later than 2 years after the date 

10 of enactment of this Act, and every 2 years thereafter until 

11 a total of 3 reports have been made, the Secretary shall 

12 submit to the Committee on Energy and Natural Re13 sources of the Senate and the Committee on Energy and 

14 Commerce of the House of Representatives a report on— 

15 (1) the establishment of the Federal Smart 

16 Building Program and the evaluation of Federal 

17 smart buildings under subsection (b); 

18 (2) the survey and evaluation of private sector 

19 smart buildings under subsection (c); and 

20 (3) any recommendations of the Secretary to 

21 further accelerate the transition to smart buildings. 


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1 Subtitle K—Energy Study 

2 SEC. 3101. ENERGY INFORMATION STUDY. 

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

4 date of enactment of this Act, the Secretary shall complete 

5 a study, with opportunity for public comment— 

6 (1) on the impact of— 

7 (A) State and local performance 

8 benchmarking and disclosure policies, and any 

9 associated building efficiency policies, for com10 mercial and multifamily buildings; and 

11 (B) programs and systems in which utili12 ties provide aggregated information regarding 

13 whole building energy consumption and usage 

14 information to owners of multitenant commer15 cial, residential, and mixed-use buildings; 

16 (2) that identifies best practice policy ap17 proaches studied under paragraph (1) that have re18 sulted in the greatest improvements in building en19 ergy efficiency; and 

20 (3) that considers— 

21 (A) compliance rates and the benefits and 

22 costs of the policies and programs on building 

23 owners, utilities, tenants, and other parties; 

24 (B) utility practices, programs, and sys25 tems that provide aggregated energy consumpVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00297 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 tion information to multitenant building own2 ers, and the impact of public utility commis3 sions and State privacy laws on those practices, 

4 programs, and systems; 

5 (C) exceptions to compliance in existing 

6 laws where building owners are not able to 

7 gather or access whole building energy informa8 tion from tenants or utilities; 

9 (D) the treatment of buildings with— 

10 (i) multiple uses; 

11 (ii) uses for which baseline informa12 tion is not available; and 

13 (iii) uses that require high levels of 

14 energy intensities, such as data centers, 

15 trading floors, and television studios; 

16 (E) implementation practices, including 

17 disclosure methods and phase-in of compliance; 

18 (F) the safety and security of 

19 benchmarking tools offered by government 

20 agencies, and the resiliency of those tools 

21 against cyber attacks; and 

22 (G) international experiences with regard 

23 to building benchmarking and disclosure laws 

24 and data aggregation for multitenant buildings. 


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1 (b) SUBMISSION TO CONGRESS.—At the conclusion 

2 of the study, the Secretary shall submit to Congress a re3 port on the results of the study. 

4 SEC. 3102. GRANTS TO UTILITIES. 

5 (a) GRANTS TO UTILITIES.—Based on the results of 

6 the research for the portion of the study described in sec7 tion 3101(a)(1)(B), and with criteria developed following 

8 public notice and comment, the Secretary may make com9 petitive awards to utilities, utility regulators, and utility 

10 partners to develop and implement effective and promising 

11 programs to provide aggregated whole building energy 

12 consumption information to multitenant building owners. 

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $5,000,000 for each of fiscal years 2016 through 2020, 

16 to remain available until expended. 

17 SEC. 3103. GRANTS TO STATES AND UNITS OF LOCAL GOV18 ERNMENT. 

19 (a) GRANTS TO UTILITIES.—Based on the results of 

20 the research for the portion of the study described in sec21 tion 3101(a)(1)(B), and with criteria developed following 

22 public notice and comment, the Secretary may make com23 petitive awards to States and units of local government 

24 to develop and implement effective and promising 

25 benchmarking and disclosure policies, and any associated 


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1 building efficiency policies, for commercial and multi2 family buildings. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $5,000,000 for each of fiscal years 2016 through 2020, 

6 to remain available until expended. 

7 SEC. 3104. INPUT FROM STAKEHOLDERS. 

8 The Secretary shall seek input from stakeholders to 

9 maximize the effectiveness of the actions taken under this 

10 subtitle. 

11 SEC. 3105. REPORT. 

12 Not later than 2 years after the date of enactment 

13 of this Act, and every 2 years thereafter, the Secretary 

14 shall submit to Congress a report on the progress made 

15 in complying with this subtitle. 

16 Subtitle L—Alternative Fueled 

17 Vehicles 

18 SEC. 3111. ALTERNATIVE FUELED VEHICLE FLEETS AND IN19 FRASTRUCTURE. 

20 (a) UTILITY INCENTIVE PROGRAMS.—Section 

21 546(c)(1) of the National Energy Conservation Policy Act 

22 (42 U.S.C. 8256(c)(1)) is amended by inserting ‘‘(includ23 ing measures to support the use of alternative fueled vehi24 cles (as defined in section 400AA(g) of the Energy Policy 

25 and Conservation Act (42 U.S.C. 6374(g))) or the fueling 


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1 or charging infrastructure necessary for those vehicles)’’ 

2 after ‘‘demand’’. 

3 (b) ENERGY SAVINGS PERFORMANCE CONTRACTS.— 

4 (1) AUTHORITY TO ENTER CONTRACTS.—Sec5 tion 801(a)(2)(B) of the National Energy Conserva6 tion Policy Act (42 U.S.C. 8287(a)(2)(B)) is amend7 ed in the first sentence by inserting ‘‘or petroleum’’ 

8 after ‘‘utilities’’. 

9 (2) PAYMENT OF COSTS.—Section 802 of the 

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

11 8287a) is amended by inserting ‘‘petroleum,’’ after 

12 ‘‘water,’’. 

13 (3) DEFINITIONS.—Section 804 of the National 

14 Energy Conservation Policy Act (42 U.S.C. 8287c) 

15 is amended— 

16 (A) in paragraph (2)— 

17 (i) in subparagraph (C), by striking 

18 ‘‘and’’ after the semicolon; 

19 (ii) in subparagraph (D), by striking 

20 the period at the end and inserting ‘‘; or’’; 

21 and 

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

24 ‘‘(E) a reduction in the use of petroleum 

25 through the use of alternative fueled vehicles or 


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1 the fueling or charging infrastructure necessary 

2 for alternative fueled vehicles, including the use 

3 of contracts to support alternative fueled vehi4 cles or infrastructure.’’; 

5 (B) in paragraph (4)— 

6 (i) in subparagraph (A), by striking 

7 ‘‘or’’ after the semicolon; 

8 (ii) in subparagraph (B), by striking 

9 the period at the end and inserting ‘‘; or’’; 

10 and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(C) a measure to support the use of alter14 native fueled vehicles or the fueling or charging 

15 infrastructure necessary for alternative fueled 

16 vehicles, including the use of contracts to sup17 port alternative fueled vehicles or infrastruc18 ture.’’; 

19 (C) by redesignating paragraphs (1), (2), 

20 (3), and (4), as paragraphs (5), (3), (4), and 

21 (2), respectively, and moving so as to appear in 

22 numerical order; and 

23 (D) by inserting before paragraph (2) (as 

24 so redesignated) the following: 


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1 ‘‘(1) ALTERNATIVE FUELED VEHICLE.—The 

2 term ‘alternative fueled vehicle’ has the meaning 

3 given the term in section 400AA(g) of the Energy 

4 Policy and Conservation Act (42 U.S.C. 6374(g)).’’. 

5 Subtitle M—Outer Continental 

6 Shelf 

7 SEC. 3121. REPEAL OF OUTER CONTINENTAL SHELF DEEP 

8 WATER AND DEEP GAS ROYALTY RELIEF. 

9 (a) IN GENERAL.—Sections 344 and 345 of the En10 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 

11 repealed. 

12 (b) ADMINISTRATION.—The Secretary of the Interior 

13 shall not be required to provide for royalty relief in the 

14 lease sale terms beginning with the first lease sale held 

15 on or after the date of enactment of this Act for which 

16 a final notice of sale has not been published. 

17 SEC. 3122. DISPOSITION OF QUALIFIED OUTER CONTI18 NENTAL SHELF REVENUES FROM 181 AREA, 

19 181 SOUTH AREA, AND 2002–2007 PLANNING 

20 AREAS OF GULF OF MEXICO. 

21 Section 105 of the Gulf of Mexico Energy Security 

22 Act of 2006 (43 U.S.C. 1331 note) is amended to read 

23 as follows: 


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1 ‘‘SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTI2 NENTAL SHELF REVENUES FROM 181 AREA, 

3 181 SOUTH AREA, AND 2002–2007 PLANNING 

4 AREAS OF GULF OF MEXICO. 

5 ‘‘Notwithstanding section 9 of the Outer Continental 

6 Shelf Lands Act (43 U.S.C. 1338) and subject to the other 

7 provisions of this section, for each applicable fiscal year, 

8 the Secretary of the Treasury shall deposit— 

9 ‘‘(1) 87.5 percent of qualified outer Continental 

10 Shelf revenues in the general fund of the Treasury; 

11 and 

12 ‘‘(2) 12.5 percent of qualified outer Continental 

13 Shelf revenues in a special account in the Land and 

14 Water Conservation Fund established under section 

15 200302 of title 54, United States Code, from which 

16 the Secretary shall disburse, without further appro17 priation, 100 percent to provide financial assistance 

18 to States in accordance with section 200305 of that 

19 title, which shall be considered income to the Land 

20 and Water Conservation Fund for purposes of sec21 tion 200302 of that title.’’. 


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1 Subtitle N—Venting and Flaring of 

2 Gas 

3 SEC. 3131. REGULATIONS TO PREVENT OR MINIMIZE VENT4 ING AND FLARING OF GAS. 

5 (a) IN GENERAL.—Not later than 180 days after the 

6 date of enactment of this Act, the Secretary of the Interior 

7 shall issue regulations under this subtitle— 

8 (1) to prevent or minimize the venting and flar9 ing of gas in oil and gas production operations on 

10 Federal land onshore and offshore in the United 

11 States; and 

12 (2) to promote the capture and beneficial use or 

13 reinjection of gas in the operations referred to in 

14 paragraph (1). 

15 (b) ROYALTIES.—A regulation issued under this sec16 tion shall include provisions that treat gas that is flared 

17 or vented in operations under a lease under this subtitle 

18 as production for which royalty is required to be paid to 

19 the United States. 

20 (c) LIMITATION ON APPLICATION TO EXISTING

21 LEASES.—Regulations issued under subsection (a) shall 

22 not apply with respect to production under a lease in effect 

23 on the date of enactment of this Act to the extent such 

24 application would constitute a breach of the terms of the 

25 lease by the United States. 


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1 SEC. 3132. ASSESSMENT OF VENTING AND FLARING OF GAS 

2 IN PRODUCTION OPERATIONS IN UNITED 

3 STATES. 

4 Not later than 18 months after the date of enactment 

5 of this Act, the Comptroller General of the United States 

6 shall— 

7 (1) assess the venting and flaring of gas in oil 

8 and gas production operations on Federal land on9 shore and offshore in the United States; and 

10 (2) submit to Congress a report on the venting 

11 and flaring of gas in oil and gas production oper12 ations on Federal land onshore and offshore in the 

13 United States, including an estimate of the volume 

14 of gas that is vented or flared in such operations 

15 each year. 

16 SEC. 3133. REGULATIONS. 

17 The Secretary of the Interior shall issue regulations 

18 that define the terms ‘‘vent’’, ‘‘venting’’, ‘‘flare’’, and 

19 ‘‘flaring’’ for purposes of this subtitle. 

20 Subtitle O—Production Incentive 

21 Fee 

22 SEC. 3141. PRODUCTION INCENTIVE FEE. 

23 (a) ESTABLISHMENT.— 

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

25 after the date of enactment of this Act, the Sec26 retary of the Interior (referred to in this section as 


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1 the ‘‘Secretary’’) shall issue regulations to establish 

2 an annual production incentive fee with respect to 

3 Federal onshore and offshore land that is subject to 

4 a lease for production of oil or natural gas under 

5 which production is not occurring. 

6 (2) APPLICATION.—The annual production in7 centive fee described in paragraph (1) shall apply 

8 with respect to land that is subject to a lease de9 scribed in paragraph (1) that is— 

10 (A) in effect on the date on which final 

11 regulations are issued pursuant to this sub12 section; or 

13 (B) executed after that date. 

14 (b) AMOUNT.—For each acre of land from which oil 

15 or natural gas is produced for less than 90 days in a cal16 endar year, the amount of the fee shall be— 

17 (1) in the case of onshore land— 

18 (A) for each of the first 3 years of the 

19 lease, $4 per acre (in 2015 dollars); 

20 (B) for the fourth year of the lease, $6 per 

21 acre (in 2015 dollars); and 

22 (C) for the fifth year of the lease and each 

23 year thereafter for which the lease is otherwise 

24 in effect, $8 per acre (in 2015 dollars); and 

25 (2) in the case of offshore land— 


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1 (A) for each of the third, fourth, and fifth 

2 years of the lease, $4 per acre (in 2015 dol3 lars); 

4 (B) for the sixth year of the lease, $6 per 

5 acre (in 2015 dollars); and 

6 (C) for the seventh year of the lease and 

7 each year thereafter for which the lease is oth8 erwise in effect, $8 per acre (in 2015 dollars). 

9 (c) ASSESSMENT AND COLLECTION.—The Secretary 

10 shall assess and collect the fee established under this sec11 tion. 

12 (d) DEPOSIT.—Amounts received by the Secretary 

13 for the fee under this section shall be reserved for the Sec14 retary for expenditures on inspection, enforcement, and 

15 permitting relating to oil and gas. 

16 (e) REGULATIONS.—The Secretary may issue regula17 tions to prevent evasion of the fee under this section. 

18 Subtitle P—Reauthorization of 

19 Desalination Act 

20 SEC. 3151. REAUTHORIZATION OF DESALINATION ACT. 

21 (a) DEFINITIONS.—Section 2 of the Water Desalina22 tion Act of 1996 (42 U.S.C. 10301 note; Public Law 104– 

23 298) is amended— 

24 (1) by redesignating paragraphs (1), (2), (3), 

25 (4), and (5) as paragraphs (2), (3), (5), (6), and 


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1 (4), respectively, and moving the paragraphs so as 

2 to appear in numerical order; and 

3 (2) by inserting before paragraph (2) (as so re4 designated) the following: 

5 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis6 trator’ means the Administrator of the Environ7 mental Protection Agency.’’. 

8 (b) AUTHORIZATION OF RESEARCH AND STUDIES.— 

9 Section 3 of the Water Desalination Act of 1996 (42 

10 U.S.C. 10301 note; Public Law 104–298) is amended by 

11 adding at the end the following: 

12 ‘‘(e) PRIORITIZATION.—In carrying out this section, 

13 the Secretary of the Interior shall prioritize funding for 

14 research— 

15 ‘‘(1) to reduce energy consumption and lower 

16 the cost of seawater and brackish water desalination; 

17 ‘‘(2) to reduce the environmental impacts of 

18 seawater desalination and develop technology and 

19 strategies to minimize those impacts; 

20 ‘‘(3) to improve existing reverse osmosis and 

21 membrane technology; 

22 ‘‘(4) to carry out basic and applied research on 

23 next generation desalination technologies, including 

24 graphene membranes, forward osmosis, hybrid mem25 brane-thermal desalination, improved energy recovVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00309 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 ery systems, and renewable energy-powered desalina2 tion systems that could significantly reduce desalina3 tion costs; and 

4 ‘‘(5) to develop portable or modular desalina5 tion units capable of providing temporary emergency 

6 water supplies for domestic or military deployment 

7 purposes.’’. 

8 (c) DESALINATION DEMONSTRATION AND DEVELOP9 MENT.—Section 4 of the Water Desalination Act of 1996 

10 (42 U.S.C. 10301 note; Public Law 104–298) is amended 

11 by adding at the end the following: 

12 ‘‘(c) PRIORITIZATION.—In carrying out demonstra13 tion and development activities under this section, the Sec14 retary shall prioritize projects— 

15 ‘‘(1) in drought-stricken States and commu16 nities; 

17 ‘‘(2) in States that have authorized funding for 

18 research and development of desalination tech19 nologies and projects; and 

20 ‘‘(3) that can reduce reliance on imported water 

21 supplies that have an impact on species listed under 

22 the Endangered Species Act of 1973 (16 U.S.C. 

23 1531 et seq.).’’. 


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1 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 8 of the Water Desalination Act of 1996 (42 U.S.C. 10301 

3 note; Public Law 104–298) is amended— 

4 (1) in subsection (a), in the first sentence— 

5 (A) by striking ‘‘$5,000,000’’ and inserting 

6 ‘‘$10,000,000’’; and 

7 (B) by striking ‘‘2013’’ and inserting 

8 ‘‘2020’’; and 

9 (2) in subsection (b), by striking ‘‘for each of 

10 fiscal years 2012 through 2013’’ and inserting ‘‘for 

11 each of fiscal years 2016 through 2020’’. 

12 (e) CONSULTATION.—Section 9 of the Water Desali13 nation Act of 1996 (42 U.S.C. 10301 note; Public Law 

14 104–298) is amended— 

15 (1) by striking the section designation and 

16 heading and all that follows through ‘‘In carrying 

17 out’’ in the first sentence and inserting the fol18 lowing: 

19 ‘‘SEC. 9. CONSULTATION AND COORDINATION. 

20 ‘‘(a) CONSULTATION.—In carrying out’’; 

21 (2) in the second sentence, by striking ‘‘The au22 thorization’’ and inserting the following: 

23 ‘‘(c) OTHER DESALINATION PROGRAMS.—The au24 thorization’’; and 


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1 (3) by inserting after subsection (a) (as des2 ignated by paragraph (1)) the following: 

3 ‘‘(b) COORDINATION OF FEDERAL DESALINATION

4 RESEARCH AND DEVELOPMENT.— 

5 ‘‘(1) IN GENERAL.—The White House Office of 

6 Science and Technology Policy shall develop a co7 ordinated strategic plan that— 

8 ‘‘(A) establishes priorities for future Fed9 eral investments in desalination; and 

10 ‘‘(B) coordinates the activities of Federal 

11 agencies involved in desalination, including the 

12 Bureau of Reclamation, the National Science 

13 Foundation, the Office of Naval Research of the 

14 Department of Defense, the National Labora15 tories of the Department of Energy, the United 

16 States Geological Survey, the Environmental 

17 Protection Agency, and the National Oceanic 

18 and Atmospheric Administration.’’. 

19 (f) DESALINATION PROJECT ASSISTANCE.—The 

20 Water Desalination Act of 1996 (42 U.S.C. 10301 note; 

21 Public Law 104–298) is amended by adding at the end 

22 the following: 

23 ‘‘SEC. 10. FEASIBILITY STUDY AND DESIGN ASSISTANCE. 

24 ‘‘(a) IN GENERAL.—In order to facilitate the develop25 ment of water desalination projects, the Administrator 


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1 shall develop and implement a program to provide finan2 cial assistance to study the feasibility and support the de3 sign of desalination facilities (including associated water 

4 distribution infrastructure) that provide usable water. 

5 ‘‘(b) FEASIBILITY STUDIES.— 

6 ‘‘(1) IN GENERAL.—The Administrator may 

7 provide grant assistance to a non-Federal project 

8 sponsor to evaluate and determine the feasibility of 

9 a public or public-private desalination project. 

10 ‘‘(2) FEDERAL SHARE.—The Federal share for 

11 a feasibility study under paragraph (1) shall not ex12 ceed 50 percent of the cost of the study. 

13 ‘‘(3) CRITERIA FOR ELIGIBILITY.—In carrying 

14 out this subsection, the Administrator shall establish 

15 criteria to determine projects eligible for grant fund16 ing based on the ability of the projects to provide re17 gional water supply benefits, including— 

18 ‘‘(A) improving water supply reliability in 

19 regions subject to frequent and severe drought; 

20 ‘‘(B) enhancement of public health, safety, 

21 ecosystems, and watershed sustainability; 

22 ‘‘(C) preservation of groundwater through 

23 reduction of withdrawals from aquifers; 


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1 ‘‘(D) offsetting demand for water conveyed 

2 from environmentally sensitive areas outside 

3 service area of the project; and 

4 ‘‘(E) mitigation of saltwater intrusion to 

5 aquifers. 

6 ‘‘(c) PROJECT DESIGN.— 

7 ‘‘(1) IN GENERAL.—The Administrator may 

8 provide grant assistance to a non-Federal project 

9 sponsor for the design of a public or public-private 

10 desalination project. 

11 ‘‘(2) FEDERAL SHARE.—The Federal share for 

12 project design under paragraph (1) shall not exceed 

13 25 percent of the cost of project design of the 

14 project. 

15 ‘‘(3) CRITERIA FOR ELIGIBILITY.—In carrying 

16 out this subsection, the Administrator shall establish 

17 criteria to determine projects eligible for grant fund18 ing, including— 

19 ‘‘(A) completion of a feasibility study de20 scribed in subsection (b); 

21 ‘‘(B) demonstration of technical feasibility 

22 and cost effectiveness; 

23 ‘‘(C) completion of all required State and 

24 Federal environmental impact analyses; 


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1 ‘‘(D) receipt of all necessary local, State, 

2 and Federal permits; 

3 ‘‘(E) demonstration of financial capability 

4 of non-Federal project sponsors; 

5 ‘‘(F) quantification and net cost of water 

6 produced by the project; and 

7 ‘‘(G) identification of users of produced 

8 water supply, including water purchase agree9 ments and other contractually binding mecha10 nisms. 

11 ‘‘(d) GUIDANCE.—Not later than 180 days after the 

12 date of enactment of this section, the Administrator shall 

13 publish appropriate guidance to implement this section. 

14 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

15 is authorized to be appropriated to carry out this section 

16 $10,000,000 for each of fiscal years 2016 through 2020, 

17 to remain available until expended. 

18 ‘‘(f) REPORT ON DESALINATION TECHNOLOGY.—Not 

19 later than 90 days after the date of enactment of this sec20 tion, the Secretary of the Navy shall submit to Congress 

21 a report on the application of desalinization technology for 

22 defense and national security purposes to provide drought 

23 relief to areas impacted by sharp declines in water sup24 ply.’’. 


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1 SEC. 3152. PROMOTING WATER EFFICIENCY WITH 

2 WATERSENSE. 

3 (a) IN GENERAL.—There is established within the 

4 Environmental Protection Agency a program, to be known 

5 as the ‘‘WaterSense Program’’, to identify and promote 

6 water efficient products, buildings, landscapes, facilities, 

7 processes, and services— 

8 (1) to reduce water use; 

9 (2) to reduce the strain on water, wastewater, 

10 and stormwater infrastructure; 

11 (3) to conserve energy used to pump, heat, 

12 transport, and treat water; and 

13 (4) to preserve water resources for future gen14 erations through voluntary labeling of, or other 

15 forms of communications regarding, products, build16 ings, landscapes, facilities, processes, and services 

17 that meet the highest water efficiency and perform18 ance criteria. 

19 (b) DUTIES.—The Administrator of the Environ20 mental Protection Agency (referred to in this section as 

21 the ‘‘Administrator’’) shall— 

22 (1) establish— 

23 (A) a WaterSense label to be used for cer24 tain items; and 

25 (B) the procedure by which an item may 

26 be certified to display the WaterSense label; 


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1 (2) promote WaterSense-labeled products, 

2 buildings, landscapes, facilities, processes, and serv3 ices in the marketplace as the preferred technologies 

4 and services for— 

5 (A) reducing water use; and 

6 (B) ensuring product and service perform7 ance; 

8 (3) work to enhance public awareness of the 

9 WaterSense label through public outreach, edu10 cation, and other means; 

11 (4) preserve the integrity of the WaterSense 

12 label by— 

13 (A) establishing and maintaining perform14 ance criteria so that products, buildings, land15 scapes, facilities, processes, and services labeled 

16 with the WaterSense label perform as well as, 

17 or better than, less water-efficient counterparts; 

18 (B) overseeing WaterSense certifications 

19 made by third parties; 

20 (C) conducting reviews of the use of the 

21 WaterSense label in the marketplace and taking 

22 corrective action in any case in which misuse of 

23 the label is identified; and 

24 (D) carrying out such other measures as 

25 the Administrator determines to be appropriate; 


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1 (5) at least once every 6 years, review and, if 

2 appropriate, update WaterSense criteria for cat3 egories of products, buildings, landscapes, facilities, 

4 processes, and services; 

5 (6) to the maximum extent practicable, at least 

6 annually estimate and make available to the public 

7 the production and relative market shares of, and 

8 the savings of water, energy, and capital costs of 

9 water, wastewater, and stormwater infrastructure 

10 attributable to the use of WaterSense-labeled prod11 ucts, buildings, landscapes, facilities, processes, and 

12 services; 

13 (7) solicit comments from interested parties and 

14 the public prior to establishing or revising a 

15 WaterSense category, specification, installation cri16 terion, or other criterion; 

17 (8) provide reasonable notice to interested par18 ties and the public of any changes (including effec19 tive dates), on the adoption of a new or revised cat20 egory, specification, installation criterion, or other 

21 criterion, along with— 

22 (A) an explanation of the changes; and 

23 (B) as appropriate, responses to comments 

24 submitted by interested parties and the public; 


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1 (9) provide appropriate lead time (as deter2 mined by the Administrator) prior to the applicable 

3 effective date for a new or significant revision to a 

4 category, specification, installation criterion, or other 

5 criterion, taking into account the timing require6 ments of the manufacturing, marketing, training, 

7 and distribution process for the specific product, 

8 building and landscape, or service category ad9 dressed; 

10 (10) identify and, if appropriate, implement 

11 other voluntary approaches in commercial, institu12 tional, residential, industrial, and municipal sectors 

13 to encourage recycling and reuse technologies to im14 prove water efficiency or lower water use; and 

15 (11) if appropriate, authorize the WaterSense 

16 label for use on products that are labeled by the En17 ergy Star program implemented by the Adminis18 trator and the Secretary of Energy. 

19 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to carry out this sec21 tion— 

22 (1) $5,000,000 for fiscal year 2016; 

23 (2) $5,000,000 for fiscal year 2017; 

24 (3) $5,000,000 for fiscal year 2018; 

25 (4) $5,000,000 for fiscal year 2019; and 


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1 (5) for each fiscal year thereafter, the applica2 ble amount for the preceding fiscal year, as adjusted 

3 to reflect changes for the 12-month period ending 

4 the preceding November 30 in the Consumer Price 

5 Index for All Urban Consumers published by the 

6 Bureau of Labor Statistics of the Department of 

7 Labor. 

8 SEC. 3153. INCREASING OPPORTUNITIES FOR AGRICUL9 TURAL CONSERVATION. 

10 (a) IN GENERAL.—The Secretary of the Interior (re11 ferred to in this section as the ‘‘Secretary’’) shall offer 

12 to enter into voluntary agreements with public water agen13 cies or other entities that receive water from any project 

14 operated by the Bureau of Reclamation to implement 

15 water conservation programs. 

16 (b) USES OF CONSERVED WATER.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), of the quantity of water conserved as a 

19 result of an agreement entered into pursuant to sub20 section (a)— 

21 (A) 25 percent shall be retained by the 

22 public water agency or entity with which the 

23 Secretary has entered into the agreement; and 

24 (B) 75 percent shall be retained by the 

25 Secretary, of which— 


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1 (i) 33 percent shall be used or mar2 keted on an annual basis for purposes that 

3 will promote groundwater recharge and 

4 conservation; and 

5 (ii) 67 percent shall be used on an an6 nual basis for refuge water supply or other 

7 authorized project purposes. 

8 (2) EXCEPTIONS.—For good reason in a par9 ticular instance, the Secretary and the public water 

10 agency or entity with which the Secretary has en11 tered into an agreement may agree to modify the 

12 percentages referred to in paragraph (1). 

13 (c) CONTRIBUTED FUNDS.— 

14 (1) IN GENERAL.—Any existing water service or 

15 repayment contractor within the project service area 

16 of a water conservation agreement under this section 

17 may contribute funds for the implementation of the 

18 agreement. 

19 (2) ACTION BY SECRETARY.—The Secretary 

20 shall provide to each contractor that contributes 

21 funds under paragraph (1) such portion of the water 

22 described in subsection (b)(1)(B)(ii) as the Secretary 

23 determines to be appropriate, but not to exceed the 

24 proportion of funds contributed by the contractor. 


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1 (3) ADDITIONAL WATER.—If a contractor con2 tributes more than 50 percent of the cost of a 

3 project carried out under an agreement under this 

4 section, the Secretary may enter into an agreement 

5 with the contractor to provide to the contractor such 

6 portion of the water described in subsection 

7 (b)(1)(B)(i) for groundwater recharge and conserva8 tion as the Secretary determines to be appropriate, 

9 subject to the condition that the contractor shall not 

10 receive a higher proportion of the water conserved 

11 than the proportion of funds contributed by the con12 tractor. 

13 SEC. 3154. SUPPORT FOR INNOVATIVE WATER SUPPLY AND 

14 CONSERVATION TECHNOLOGIES. 

15 (a) IN GENERAL.—To promote the development of 

16 innovative water supply and conservation technologies, the 

17 Administrator of the Environmental Protection Agency 

18 (referred to in this section as the ‘‘Administrator’’) may 

19 award, on a competitive basis, grants and enter into con20 tracts to assist in the financing of research and dem21 onstration projects for those innovative technologies. 

22 (b) ELIGIBLE ENTITIES.—To be eligible to receive an 

23 award under this section, an entity shall be— 

24 (1) a local entity; 


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1 (2) a public nonprofit institution or organiza2 tion; 

3 (3) a commercial entity; 

4 (4) a federally recognized Indian tribe; or 

5 (5) a nonprofit institution or organization. 

6 (c) ELIGIBILITY CRITERIA.—The Administrator shall 

7 establish criteria for an entity described in subsection (b) 

8 to be eligible to receive a grant from, or enter into a con9 tract with, the Administrator under this section, includ10 ing— 

11 (1) demonstration of the technical feasibility of 

12 the proposal and the qualifications of the entity to 

13 carry out the proposal; 

14 (2) demonstration of the financial capability 

15 and creditworthiness of non-Federal project spon16 sors; 

17 (3) compliance with all applicable laws and re18 ceipt of all necessary local, State, and Federal per19 mits; and 

20 (4) quantification of the estimated water to be 

21 produced or saved by the project and the net cost of 

22 the project. 

23 (d) EVALUATION CRITERIA.—The Administrator 

24 shall establish criteria for evaluating on a competitive 


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1 basis eligible applicants under this section, including the 

2 degree to which the proposed technology— 

3 (1) proposes an innovation that has broad, fun4 damental implications for water savings or water 

5 supply; 

6 (2) is economically feasible; 

7 (3) could reduce the costs of water supply, in8 cluding reductions in associated energy costs; 

9 (4) would solve environmental concerns or pro10 vide environmental benefits; 

11 (5) has a proof of concept, and a likely path to 

12 success within a reasonable timeframe; and 

13 (6) is aimed at the development of a specific 

14 water saving or water supply application, as opposed 

15 to basic research aimed at discovery and funda16 mental knowledge generation. 

17 (e) AUTHORITY TO ENGAGE OTHERS.— 

18 (1) IN GENERAL.—In carrying out research 

19 under this section, the Administrator may engage 

20 such personnel, industrial or engineering entities, 

21 Federal laboratories, water resources research and 

22 technology institutions, other facilities, and edu23 cational institutions as the Administrator determines 

24 to be necessary. 


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1 (2) TECHNICAL AND ADMINISTRATIVE ASSIST2 ANCE.—The Administrator may— 

3 (A) accept technical and administrative as4 sistance from States and public or private agen5 cies in connection with studies, surveys, loca6 tion, construction, operation, and other work re7 lating to the desalting of water; and 

8 (B) enter into contracts or agreements 

9 that— 

10 (i) establish the purposes for which 

11 the assistance is contributed; and 

12 (ii) provide for the sharing of costs 

13 between the Administrator and any such 

14 agency. 

15 (f) COST SHARING.— 

16 (1) FEDERAL COST SHARE.—Subject to para17 graph (2), the Federal share of the cost of a project 

18 under this section shall not exceed 25 percent, un19 less the Administrator determines that the project is 

20 not feasible without an increased Federal contribu21 tion. 

22 (2) MAXIMUM FEDERAL COST SHARE.—Not23 withstanding paragraph (1), the Federal share of 

24 the cost of a project under this section shall not ex25 ceed 50 percent of the total project cost. 


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1 (3) PROCEDURES FOR ALLOCATING COSTS.— 

2 (A) IN GENERAL.—The Administrator 

3 shall prescribe appropriate procedures to imple4 ment this section. 

5 (B) NON-FEDERAL COSTS.—The costs of 

6 operation, maintenance, repair, and rehabilita7 tion of any facility funded under this section 

8 shall be a non-Federal responsibility. 

9 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to carry out this section 

11 $35,000,000 for the period of fiscal years 2016 through 

12 2020. 

13 TITLE IV—INVESTING IN 

14 RESEARCH AND DEVELOPMENT 

15 SEC. 4001. BASIC RESEARCH. 

16 Section 971(b) of the Energy Policy Act of 2005 (42 

17 U.S.C. 16311(b)) is amended— 

18 (1) in paragraph (6), by striking ‘‘and’’ at the 

19 end; 

20 (2) in paragraph (7), by striking the period at 

21 the end and inserting ‘‘; and’’; and 

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

23 ‘‘(8) $15,000,000,000 for each of fiscal years 

24 2016 through 2020.’’. 


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1 SEC. 4002. ADVANCED RESEARCH PROJECTS AGENCY-EN2 ERGY. 

3 Section 5012 of the America COMPETES Act (42 

4 U.S.C. 16538) is amended— 

5 (1) in subsection (a)(3), by striking ‘‘subsection 

6 (n)(1)’’ and inserting ‘‘subsection (o)(1)’’; 

7 (2) in subsection (i), by striking paragraph (1) 

8 and inserting the following: 

9 ‘‘(1) IN GENERAL.—To the maximum extent 

10 practicable, the Director shall ensure that— 

11 ‘‘(A) the activities of ARPA–E are coordi12 nated with, and do not duplicate the efforts of, 

13 programs and laboratories within the Depart14 ment and other relevant research agencies; and 

15 ‘‘(B) ARPA–E does not provide funding 

16 for a project unless the prospective grantee 

17 demonstrates sufficient attempts to secure pri18 vate financing or indicates that the project is 

19 not independently commercially viable.’’; 

20 (3) by redesignating subsection (n) as sub21 section (o); 

22 (4) by inserting after subsection (m) the fol23 lowing: 

24 ‘‘(n) PROTECTION OF INFORMATION.—The following 

25 types of information collected by the ARPA–E from recipi26 ents of financial assistance awards shall be considered 


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1 privileged and confidential and not subject to disclosure 

2 under section 552 of title 5, United States Code: 

3 ‘‘(1) Plans for commercialization of technologies 

4 developed under the award, including business plans, 

5 technology-to-market plans, market studies, and cost 

6 and performance models. 

7 ‘‘(2) Investments provided to an awardee from 

8 third parties (such as venture capital firms, hedge 

9 funds, and private equity firms), including amounts 

10 and the percentage of ownership of the awardee pro11 vided in return for the investments. 

12 ‘‘(3) Additional financial support that the 

13 awardee— 

14 ‘‘(A) plans to or has invested into the tech15 nology developed under the award; or 

16 ‘‘(B) is seeking from third parties. 

17 ‘‘(4) Revenue from the licensing or sale of new 

18 products or services resulting from research con19 ducted under the award.’’; and 

20 (5) in subsection (o) (as redesignated by para21 graph (3))— 

22 (A) in paragraph (2)— 

23 (i) in the matter preceding subpara24 graph (A), by striking ‘‘paragraphs (4) 

25 and (5)’’ and inserting ‘‘paragraph (4)’’; 


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1 (ii) in subparagraph (D), by striking 

2 ‘‘and’’ at the end; 

3 (iii) in subparagraph (E), by striking 

4 the period at the end and inserting ‘‘; 

5 and’’; and 

6 (iv) by adding at the end the fol7 lowing: 

8 ‘‘(F) $1,000,000, 000 for each of fiscal 

9 years 2016 through 2020.’’; and 

10 (B) in paragraph (4)(B), by striking 

11 ‘‘(c)(2)(D)’’ and inserting ‘‘(c)(2)(C)’’. 

12 TITLE V—INVESTING IN CLEAN 

13 ENERGY 

14 SEC. 5001. AMENDMENT OF 1986 CODE. 

15 Except as otherwise expressly provided, whenever in 

16 this title an amendment or repeal is expressed in terms 

17 of an amendment to, or repeal of, a section or other provi18 sion, the reference shall be considered to be made to a 

19 section or other provision of the Internal Revenue Code 

20 of 1986. 


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1 Subtitle A—Clean Energy Tax 

2 Credits 

3 SEC. 5011. CLEAN ENERGY PRODUCTION CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 is amended by adding at the end 

6 the following new section: 

7 ‘‘SEC. 45S. CLEAN ENERGY PRODUCTION CREDIT. 

8 ‘‘(a) AMOUNT OF CREDIT.— 

9 ‘‘(1) IN GENERAL.—For purposes of section 38, 

10 the clean energy production credit for any taxable 

11 year is an amount equal to the product of— 

12 ‘‘(A) the applicable credit rate (as deter13 mined under paragraph (2)), multiplied by 

14 ‘‘(B) the kilowatt hours of electricity— 

15 ‘‘(i) produced by the taxpayer at a 

16 qualified facility, and 

17 ‘‘(ii)(I) sold by the taxpayer to an un18 related person during the taxable year, or 

19 ‘‘(II) in the case of a qualified facility 

20 which is equipped with a metering device 

21 which is owned and operated by an unre22 lated person, sold, consumed, or stored by 

23 the taxpayer during the taxable year. 

24 ‘‘(2) APPLICABLE CREDIT RATE.— 

25 ‘‘(A) IN GENERAL.— 


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1 ‘‘(i) MAXIMUM CREDIT RATE.—Except 

2 as provided in clause (ii), the applicable 

3 credit rate is 1.5 cents. 

4 ‘‘(ii) REDUCTION OF CREDIT BASED

5 ON GREENHOUSE GAS EMISSION RATE.— 

6 The applicable credit rate shall be reduced 

7 (but not below zero) by an amount which 

8 bears the same ratio to the amount in ef9 fect under clause (i) as the greenhouse gas 

10 emissions rate for the qualified facility 

11 bears to 372 grams of CO2e per KWh. 

12 ‘‘(B) ROUNDING.—If any amount deter13 mined under subparagraph (A)(ii) is not a mul14 tiple of 0.1 cent, such amount shall be rounded 

15 to the nearest multiple of 0.1 cent. 

16 ‘‘(b) GREENHOUSE GAS EMISSIONS RATE.— 

17 ‘‘(1) IN GENERAL.—For purposes of this sec18 tion, the term ‘greenhouse gas emissions rate’ means 

19 the amount of greenhouse gases emitted into the at20 mosphere by a qualified facility in the production of 

21 electricity, expressed as grams of CO2e per KWh. 

22 ‘‘(2) NON-FOSSIL FUEL COMBUSTION AND GAS23 IFICATION.—In the case of a qualified facility which 

24 produces electricity through combustion or gasifi25 cation of a non-fossil fuel, the greenhouse gas emisVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00331 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 sions rate for such facility shall be equal to the net 

2 rate of greenhouse gases emitted into the atmos3 phere by such facility in the production of electricity, 

4 expressed as grams of CO2e per KWh. 

5 ‘‘(3) ESTABLISHMENT OF SAFE HARBOR FOR

6 QUALIFIED FACILITIES.— 

7 ‘‘(A) IN GENERAL.—The Secretary, in con8 sultation with the Administrator of the Envi9 ronmental Protection Agency, shall, by regula10 tion, establish safe-harbor greenhouse gas emis11 sions rates for types or categories of qualified 

12 facilities, which a taxpayer may elect to use for 

13 purposes of this section. 

14 ‘‘(B) ROUNDING.—In establishing the safe15 harbor greenhouse gas emissions rates for 

16 qualified facilities, the Secretary may round 

17 such rates to the nearest multiple of 37.2 

18 grams of CO2e per KWh (or, in the case of a 

19 greenhouse gas emissions rate which is less 

20 than 18.6 grams of CO2e per KWh, by round21 ing such rate to zero). 

22 ‘‘(4) CARBON CAPTURE AND SEQUESTRATION

23 EQUIPMENT.—For purposes of this subsection, the 

24 amount of greenhouse gases emitted into the atmos25 phere by a qualified facility in the production of 


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1 electricity shall not include any qualified carbon di2 oxide (as defined in section 48E(c)(3)(A)) that is 

3 captured and disposed of by the taxpayer. 

4 ‘‘(c) INFLATION ADJUSTMENT.— 

5 ‘‘(1) IN GENERAL.—In the case of a calendar 

6 year beginning after 2018, the 1.5 cent amount in 

7 clause (i) of subsection (a)(2)(A) shall be adjusted 

8 by multiplying such amount by the inflation adjust9 ment factor for the calendar year in which the sale 

10 or use of the electricity occurs. If any amount as in11 creased under the preceding sentence is not a mul12 tiple of 0.1 cent, such amount shall be rounded to 

13 the nearest multiple of 0.1 cent. 

14 ‘‘(2) ANNUAL COMPUTATION.—The Secretary 

15 shall, not later than April 1 of each calendar year, 

16 determine and publish in the Federal Register the 

17 inflation adjustment factor for such calendar year in 

18 accordance with this subsection. 

19 ‘‘(3) INFLATION ADJUSTMENT FACTOR.—The 

20 term ‘inflation adjustment factor’ means, with re21 spect to a calendar year, a fraction the numerator 

22 of which is the GDP implicit price deflator for the 

23 preceding calendar year and the denominator of 

24 which is the GDP implicit price deflator for the cal25 endar year 1992. The term ‘GDP implicit price 


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1 deflator’ means the most recent revision of the im2 plicit price deflator for the gross domestic product 

3 as computed and published by the Department of 

4 Commerce before March 15 of the calendar year. 

5 ‘‘(d) CREDIT PHASE-OUT.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

7 if the Secretary, in consultation with the Secretary 

8 of Energy and the Administrator of the Environ9 mental Protection Agency, determines that the an10 nual greenhouse gas emissions from electrical pro11 duction in the United States are equal to or less 

12 than 72 percent of the annual greenhouse gas emis13 sions from electrical production in the United States 

14 for calendar year 2005, the amount of the clean en15 ergy production credit under subsection (a) for any 

16 qualified facility placed in service during a calendar 

17 year described in paragraph (2) shall be equal to the 

18 product of— 

19 ‘‘(A) the amount of the credit determined 

20 under subsection (a) without regard to this sub21 section, multiplied by 

22 ‘‘(B) the phase-out percentage under para23 graph (2). 

24 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

25 percentage under this paragraph is equal to— 


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1 ‘‘(A) for a facility placed in service during 

2 the first calendar year following the calendar 

3 year in which the determination described in 

4 paragraph (1) is made, 75 percent, 

5 ‘‘(B) for a facility placed in service during 

6 the second calendar year following such deter7 mination year, 50 percent, 

8 ‘‘(C) for a facility placed in service during 

9 the third calendar year following such deter10 mination year, 25 percent, and 

11 ‘‘(D) for a facility placed in service during 

12 any calendar year subsequent to the year de13 scribed in subparagraph (C), 0 percent. 

14 ‘‘(3) DEADLINE TO BEGIN PHASE-OUT.—If the 

15 Secretary, in consultation with the Secretary of En16 ergy and the Administrator of the Environmental 

17 Protection Agency, determines that the annual 

18 greenhouse gas emissions from electrical production 

19 in the United States for each year before calendar 

20 year 2026 are greater than the percentage specified 

21 in paragraph (1), then the determination described 

22 in such paragraph shall be deemed to have been 

23 made for calendar year 2025. 

24 ‘‘(e) DEFINITIONS.—In this section: 


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1 ‘‘(1) CO2e PER KWh.—The term ‘CO2e per 

2 KWh’ means, with respect to any greenhouse gas, 

3 the equivalent carbon dioxide per kilowatt hour of 

4 electricity produced. 

5 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

6 gas’ has the same meaning given such term under 

7 section 211(o)(1)(G) of the Clean Air Act (42 

8 U.S.C. 7545(o)(1)(G)), as in effect on the date of 

9 the enactment of this section. 

10 ‘‘(3) QUALIFIED FACILITY.— 

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graphs (B) and (C), the term ‘qualified facility’ 

13 means a facility which is— 

14 ‘‘(i) used for the generation of elec15 tricity, and 

16 ‘‘(ii) originally placed in service after 

17 December 31, 2017. 

18 ‘‘(B) 10-YEAR PRODUCTION CREDIT.—For 

19 purposes of this section, a facility shall only be 

20 treated as a qualified facility during the 10-year 

21 period beginning on the date the facility was 

22 originally placed in service. 

23 ‘‘(C) EXPANSION OF FACILITY; INCRE24 MENTAL PRODUCTION.—A qualified facility 

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1 tion with a facility described in subparagraph 

2 (A)(i) that was previously placed in service, but 

3 only to the extent of the increased amount of 

4 electricity produced at the facility by reason of 

5 the following: 

6 ‘‘(i) A new unit placed in service after 

7 December 31, 2017. 

8 ‘‘(ii) Any efficiency improvements or 

9 additions of capacity placed in service after 

10 December 31, 2017. 

11 ‘‘(D) COORDINATION WITH OTHER CRED12 ITS.—The term ‘qualified facility’ shall not in13 clude any facility for which— 

14 ‘‘(i) a renewable electricity production 

15 credit determined under section 45 is al16 lowed under section 38 for the taxable year 

17 or any prior taxable year, 

18 ‘‘(ii) an energy credit determined 

19 under section 48 is allowed under section 

20 38 for the taxable year or any prior tax21 able year, or 

22 ‘‘(iii) a clean energy investment credit 

23 determined under section 48E is allowed 

24 under section 38 for the taxable year or 

25 any prior taxable year. 


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1 ‘‘(f) FINAL GUIDANCE.—Not later than January 1, 

2 2017, the Secretary, in consultation with the Adminis3 trator of the Environmental Protection Agency, shall issue 

4 final guidance regarding implementation of this section, 

5 including calculation of greenhouse gas emission rates for 

6 qualified facilities and determination of clean energy pro7 duction credits under this section. 

8 ‘‘(g) SPECIAL RULES.— 

9 ‘‘(1) ONLY PRODUCTION IN THE UNITED

10 STATES TAKEN INTO ACCOUNT.—Consumption or 

11 sales shall be taken into account under this section 

12 only with respect to electricity the production of 

13 which is within— 

14 ‘‘(A) the United States (within the mean15 ing of section 638(1)), or 

16 ‘‘(B) a possession of the United States 

17 (within the meaning of section 638(2)). 

18 ‘‘(2) COMBINED HEAT AND POWER SYSTEM

19 PROPERTY.— 

20 ‘‘(A) IN GENERAL.—For purposes of sub21 section (a)(1)(B), the kilowatt hours of elec22 tricity produced by a taxpayer at a qualified fa23 cility shall include any production in the form 

24 of useful thermal energy by any combined heat 

25 and power system property within such facility. 


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1 ‘‘(B) COMBINED HEAT AND POWER SYS2 TEM PROPERTY.—For purposes of this para3 graph, the term ‘combined heat and power sys4 tem property’ has the same meaning given such 

5 term by section 48(c)(3) (without regard to 

6 subparagraphs (A)(iv), (B), and (D) thereof). 

7 ‘‘(C) CONVERSION FROM BTU TO KWH.— 

8 ‘‘(i) IN GENERAL.—For purposes of 

9 subparagraph (A), the amount of kilowatt 

10 hours of electricity produced in the form of 

11 useful thermal energy shall be equal to the 

12 quotient of— 

13 ‘‘(I) the total useful thermal en14 ergy produced by the combined heat 

15 and power system property within the 

16 qualified facility, divided by 

17 ‘‘(II) the heat rate for such facil18 ity. 

19 ‘‘(ii) HEAT RATE.—For purposes of 

20 this subparagraph, the term ‘heat rate’ 

21 means the amount of energy used by the 

22 qualified facility to generate 1 kilowatt 

23 hour of electricity, expressed as British 

24 thermal units per net kilowatt hour gen25 erated. 


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1 ‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAX2 PAYER.—In the case of a qualified facility in which 

3 more than 1 person has an ownership interest, ex4 cept to the extent provided in regulations prescribed 

5 by the Secretary, production from the facility shall 

6 be allocated among such persons in proportion to 

7 their respective ownership interests in the gross 

8 sales from such facility. 

9 ‘‘(4) RELATED PERSONS.—Persons shall be 

10 treated as related to each other if such persons 

11 would be treated as a single employer under the reg12 ulations prescribed under section 52(b). In the case 

13 of a corporation which is a member of an affiliated 

14 group of corporations filing a consolidated return, 

15 such corporation shall be treated as selling electricity 

16 to an unrelated person if such electricity is sold to 

17 such a person by another member of such group. 

18 ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND

19 TRUSTS.—Under regulations prescribed by the Sec20 retary, rules similar to the rules of subsection (d) of 

21 section 52 shall apply. 

22 ‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF

23 AGRICULTURAL COOPERATIVE.— 

24 ‘‘(A) ELECTION TO ALLOCATE.— 


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1 ‘‘(i) IN GENERAL.—In the case of an 

2 eligible cooperative organization, any por3 tion of the credit determined under sub4 section (a) for the taxable year may, at the 

5 election of the organization, be apportioned 

6 among patrons of the organization on the 

7 basis of the amount of business done by 

8 the patrons during the taxable year. 

9 ‘‘(ii) FORM AND EFFECT OF ELEC10 TION.—An election under clause (i) for any 

11 taxable year shall be made on a timely 

12 filed return for such year. Such election, 

13 once made, shall be irrevocable for such 

14 taxable year. Such election shall not take 

15 effect unless the organization designates 

16 the apportionment as such in a written no17 tice mailed to its patrons during the pay18 ment period described in section 1382(d). 

19 ‘‘(B) TREATMENT OF ORGANIZATIONS AND

20 PATRONS.—The amount of the credit appor21 tioned to any patrons under subparagraph 

22 (A)— 

23 ‘‘(i) shall not be included in the 

24 amount determined under subsection (a) 


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1 with respect to the organization for the 

2 taxable year, and 

3 ‘‘(ii) shall be included in the amount 

4 determined under subsection (a) for the 

5 first taxable year of each patron ending on 

6 or after the last day of the payment period 

7 (as defined in section 1382(d)) for the tax8 able year of the organization or, if earlier, 

9 for the taxable year of each patron ending 

10 on or after the date on which the patron 

11 receives notice from the cooperative of the 

12 apportionment. 

13 ‘‘(C) SPECIAL RULES FOR DECREASE IN

14 CREDITS FOR TAXABLE YEAR.—If the amount 

15 of the credit of a cooperative organization de16 termined under subsection (a) for a taxable 

17 year is less than the amount of such credit 

18 shown on the return of the cooperative organi19 zation for such year, an amount equal to the 

20 excess of— 

21 ‘‘(i) such reduction, over 

22 ‘‘(ii) the amount not apportioned to 

23 such patrons under subparagraph (A) for 

24 the taxable year, 


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1 shall be treated as an increase in tax imposed 

2 by this chapter on the organization. Such in3 crease shall not be treated as tax imposed by 

4 this chapter for purposes of determining the 

5 amount of any credit under this chapter. 

6 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 

7 For purposes of this section, the term ‘eligible 

8 cooperative’ means a cooperative organization 

9 described in section 1381(a) which is owned 

10 more than 50 percent by agricultural producers 

11 or by entities owned by agricultural producers. 

12 For this purpose an entity owned by an agricul13 tural producer is one that is more than 50 per14 cent owned by agricultural producers.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 38(b) is amended— 

17 (A) in paragraph (35), by striking ‘‘plus’’ 

18 at the end, 

19 (B) in paragraph (36), by striking the pe20 riod at the end and inserting ‘‘, plus’’, and 

21 (C) by adding at the end the following new 

22 paragraph: 

23 ‘‘(37) the clean energy production credit deter24 mined under section 45S(a).’’. 


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1 (2) The table of sections for subpart D of part 

2 IV of subchapter A of chapter 1 is amended by add3 ing at the end the following new item: 

‘‘Sec. 45S. Clean energy production credit.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to facilities placed in service after 

6 December 31, 2017. 

7 SEC. 5012. CLEAN ENERGY INVESTMENT CREDIT. 

8 (a) BUSINESS CREDIT.— 

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

10 subchapter A of chapter 1 is amended by inserting 

11 after section 48D the following new section: 

12 ‘‘SEC. 48E. CLEAN ENERGY INVESTMENT CREDIT. 

13 ‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROP14 ERTY.— 

15 ‘‘(1) IN GENERAL.—For purposes of section 46, 

16 the clean energy investment credit for any taxable 

17 year is an amount equal to the sum of— 

18 ‘‘(A) the clean energy percentage of the 

19 qualified investment for such taxable year with 

20 respect to any qualified facility, plus 

21 ‘‘(B) 30 percent of the qualified invest22 ment for such taxable year with respect to 

23 qualified carbon capture and sequestration 

24 equipment, plus 


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1 ‘‘(C) 30 percent of the qualified investment 

2 for such taxable year with respect to energy 

3 storage property. 

4 ‘‘(2) CLEAN ENERGY PERCENTAGE.— 

5 ‘‘(A) IN GENERAL.— 

6 ‘‘(i) MAXIMUM PERCENTAGE.—Except 

7 as provided in clause (ii), the clean energy 

8 percentage is 30 percent. 

9 ‘‘(ii) REDUCTION OF PERCENTAGE

10 BASED ON GREENHOUSE GAS EMISSIONS

11 RATE.—The clean energy percentage shall 

12 be reduced (but not below zero) by an 

13 amount which bears the same ratio to 30 

14 percent as the anticipated greenhouse gas 

15 emissions rate for the qualified facility 

16 bears to 372 grams of CO2e per KWh. 

17 ‘‘(B) ROUNDING.—If any amount deter18 mined under subparagraph (A)(ii) is not a mul19 tiple of 1 percent, such amount shall be round20 ed to the nearest multiple of 1 percent. 

21 ‘‘(3) COORDINATION WITH REHABILITATION

22 CREDIT.—The clean energy percentage shall not 

23 apply to that portion of the basis of any property 

24 which is attributable to qualified rehabilitation ex25 penditures (as defined in section 47(c)(2)). 


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1 ‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO

2 ANY QUALIFIED FACILITY.— 

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

4 (a)(1)(A), the qualified investment with respect to 

5 any qualified facility for any taxable year is the 

6 basis of any qualified property placed in service by 

7 the taxpayer during such taxable year which is part 

8 of a qualified facility. 

9 ‘‘(2) QUALIFIED PROPERTY.—The term ‘quali10 fied property’ means property— 

11 ‘‘(A) which is— 

12 ‘‘(i) tangible personal property, or 

13 ‘‘(ii) other tangible property (not in14 cluding a building or its structural compo15 nents), but only if such property is used as 

16 an integral part of the qualified facility, 

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

18 amortization in lieu of depreciation) is allow19 able, 

20 ‘‘(C) which is constructed, reconstructed, 

21 erected, or acquired by the taxpayer, and 

22 ‘‘(D) the original use of which commences 

23 with the taxpayer. 

24 ‘‘(3) QUALIFIED FACILITY.—The term ‘quali25 fied facility’ has the same meaning given such term 


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1 by section 45S(e)(3) (without regard to subpara2 graphs (B) and (D) thereof). Such term shall not in3 clude any facility for which a renewable electricity 

4 production credit under section 45 or an energy 

5 credit determined under section 48 is allowed under 

6 section 38 for the taxable year or any prior taxable 

7 year. 

8 ‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO

9 QUALIFIED CARBON CAPTURE AND SEQUESTRATION

10 EQUIPMENT.— 

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

12 (a)(1)(B), the qualified investment with respect to 

13 qualified carbon capture and sequestration equip14 ment for any taxable year is the basis of any quali15 fied carbon capture and sequestration equipment 

16 placed in service by the taxpayer during such taxable 

17 year. 

18 ‘‘(2) QUALIFIED CARBON CAPTURE AND SE19 QUESTRATION EQUIPMENT.—The term ‘qualified 

20 carbon capture and sequestration equipment’ means 

21 property— 

22 ‘‘(A) installed in a facility placed in service 

23 before January 1, 2018, which produces elec24 tricity, 


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1 ‘‘(B) which results in at least a 50 percent 

2 reduction in the carbon dioxide emissions rate 

3 at the facility, as compared to such rate before 

4 installation of such equipment, through the cap5 ture and disposal of qualified carbon dioxide (as 

6 defined in paragraph (3)(A)), 

7 ‘‘(C) with respect to which depreciation is 

8 allowable, 

9 ‘‘(D) which is constructed, reconstructed, 

10 erected, or acquired by the taxpayer, and 

11 ‘‘(E) the original use of which commences 

12 with the taxpayer. 

13 ‘‘(3) QUALIFIED CARBON DIOXIDE.— 

14 ‘‘(A) IN GENERAL.—The term ‘qualified 

15 carbon dioxide’ means carbon dioxide captured 

16 from an industrial source which— 

17 ‘‘(i) would otherwise be released into 

18 the atmosphere as industrial emission of 

19 greenhouse gas, 

20 ‘‘(ii) is measured at the source of cap21 ture and verified at the point of disposal or 

22 injection, 

23 ‘‘(iii) is disposed of by the taxpayer in 

24 secure geological storage, and 


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1 ‘‘(iv) is captured and disposed of with2 in the United States (within the meaning 

3 of section 638(1)) or a possession of the 

4 United States (within the meaning of sec5 tion 638(2)). 

6 ‘‘(B) SECURE GEOLOGICAL STORAGE.— 

7 The term ‘secure geological storage’ has the 

8 same meaning given to such term under section 

9 45Q(d)(2). 

10 ‘‘(d) QUALIFIED INVESTMENT WITH RESPECT TO

11 ENERGY STORAGE PROPERTY.— 

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

13 (a)(1)(C), the qualified investment with respect to 

14 energy storage property for any taxable year is the 

15 basis of any energy storage property placed in serv16 ice by the taxpayer during such taxable year. 

17 ‘‘(2) ENERGY STORAGE PROPERTY.—The term 

18 ‘energy storage property’ means property— 

19 ‘‘(A) installed at or near a facility which 

20 produces electricity, 

21 ‘‘(B) which receives, stores, and delivers 

22 electricity or energy for conversion to electricity 

23 which is sold by the taxpayer to an unrelated 

24 person (or, in the case of a facility which is 

25 equipped with a metering device which is owned 


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1 and operated by an unrelated person, sold or 

2 consumed by the taxpayer), which may in3 clude— 

4 ‘‘(i) hydroelectric pumped storage, 

5 ‘‘(ii) compressed air energy storage, 

6 ‘‘(iii) regenerative fuel cells, 

7 ‘‘(iv) batteries, 

8 ‘‘(v) superconducting magnetic energy 

9 storage, 

10 ‘‘(vi) thermal energy storage systems, 

11 ‘‘(vii) fuel cells (as defined in section 

12 48(c)(1)), 

13 ‘‘(viii) any other relevant technology 

14 identified by the Secretary (in consultation 

15 with the Secretary of Energy), and 

16 ‘‘(ix) any combination of the prop17 erties described in clauses (i) through 

18 (viii), 

19 ‘‘(C) with respect to which depreciation is 

20 allowable, 

21 ‘‘(D) which is constructed, reconstructed, 

22 erected, or acquired by the taxpayer, 

23 ‘‘(E) the original use of which commences 

24 with the taxpayer, and 


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1 ‘‘(F) which is placed in service after De2 cember 31, 2017. 

3 ‘‘(e) GREENHOUSE GAS EMISSIONS RATE.— 

4 ‘‘(1) IN GENERAL.—For purposes of this sec5 tion, the term ‘greenhouse gas emissions rate’ has 

6 the same meaning given such term under subsection 

7 (b) of section 45S. 

8 ‘‘(2) ESTABLISHMENT OF SAFE HARBOR FOR

9 QUALIFIED PROPERTY.— 

10 ‘‘(A) IN GENERAL.—The Secretary, in con11 sultation with the Administrator of the Envi12 ronmental Protection Agency, shall, by regula13 tion, establish safe-harbor greenhouse gas emis14 sions rates for types or categories of qualified 

15 property which are part of a qualified facility, 

16 which a taxpayer may elect to use for purposes 

17 of this section. 

18 ‘‘(B) ROUNDING.—In establishing the safe19 harbor greenhouse gas emissions rates for 

20 qualified property, the Secretary may round 

21 such rates to the nearest multiple of 37.2 

22 grams of CO2e per KWh (or, in the case of a 

23 greenhouse gas emissions rate which is less 

24 than 18.6 grams of CO2e per KWh, by round25 ing such rate to zero). 


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1 ‘‘(f) CERTAIN PROGRESS EXPENDITURE RULES

2 MADE APPLICABLE.—Rules similar to the rules of sub3 section (c)(4) and (d) of section 46 (as in effect on the 

4 day before the date of the enactment of the Revenue Rec5 onciliation Act of 1990) shall apply for purposes of sub6 section (a). 

7 ‘‘(g) CREDIT PHASE-OUT.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

9 if the Secretary, in consultation with the Secretary 

10 of Energy and the Administrator of the Environ11 mental Protection Agency, determines that the an12 nual greenhouse gas emissions from electrical pro13 duction in the United States are equal to or less 

14 than 72 percent of the annual greenhouse gas emis15 sions from electrical production in the United States 

16 for calendar year 2005, the amount of the clean en17 ergy investment credit under subsection (a) for any 

18 qualified facility, qualified carbon capture and se19 questration equipment, or energy storage property 

20 placed in service during a calendar year described in 

21 paragraph (2) shall be equal to the product of— 

22 ‘‘(A) the amount of the credit determined 

23 under subsection (a) without regard to this sub24 section, multiplied by 


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1 ‘‘(B) the phase-out percentage under para2 graph (2). 

3 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

4 percentage under this paragraph is equal to— 

5 ‘‘(A) for a facility or property placed in 

6 service during the first calendar year following 

7 the calendar year in which the determination 

8 described in paragraph (1) is made, 75 percent, 

9 ‘‘(B) for a facility or property placed in 

10 service during the second calendar year fol11 lowing such determination year, 50 percent, 

12 ‘‘(C) for a facility or property placed in 

13 service during the third calendar year following 

14 such determination year, 25 percent, and 

15 ‘‘(D) for a facility or property placed in 

16 service during any calendar year subsequent to 

17 the year described in subparagraph (C), 0 per18 cent. 

19 ‘‘(3) DEADLINE TO BEGIN PHASE-OUT.—If the 

20 Secretary, in consultation with the Secretary of En21 ergy and the Administrator of the Environmental 

22 Protection Agency, determines that the annual 

23 greenhouse gas emissions from electrical production 

24 in the United States for each year before calendar 

25 year 2026 are greater than the percentage specified 


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1 in paragraph (1), then the determination described 

2 in such paragraph shall be deemed to have been 

3 made for calendar year 2025. 

4 ‘‘(h) DEFINITIONS.—In this section: 

5 ‘‘(1) CO2e PER KWh.—The term ‘CO2e per 

6 KWh’ has the same meaning given such term under 

7 section 45S(e)(1). 

8 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

9 gas’ has the same meaning given such term under 

10 section 45S(e)(2). 

11 ‘‘(i) RECAPTURE OF CREDIT.—For purposes of sec12 tion 50, if the Administrator of the Environmental Protec13 tion Agency determines that— 

14 ‘‘(1) the greenhouse gas emissions rate for a 

15 qualified facility is significantly higher than the an16 ticipated greenhouse gas emissions rate claimed by 

17 the taxpayer for purposes of the clean energy invest18 ment credit under this section, or 

19 ‘‘(2) with respect to any qualified carbon cap20 ture and sequestration equipment installed in a facil21 ity, the carbon dioxide emissions from such facility 

22 cease to be captured or disposed of in a manner con23 sistent with the requirements of subsection (c), 


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1 the facility or equipment shall cease to be investment cred2 it property in the taxable year in which the determination 

3 is made. 

4 ‘‘(j) FINAL GUIDANCE.—Not later than January 1, 

5 2017, the Secretary, in consultation with the Adminis6 trator of the Environmental Protection Agency, shall issue 

7 final guidance regarding implementation of this section, 

8 including calculation of greenhouse gas emission rates for 

9 qualified facilities and determination of clean energy in10 vestment credits under this section.’’. 

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 46 is amended by inserting a 

13 comma at the end of paragraph (4), by striking 

14 ‘‘and’’ at the end of paragraph (5), by striking 

15 the period at the end of paragraph (6) and in16 serting ‘‘, and’’, and by adding at the end the 

17 following new paragraph: 

18 ‘‘(7) the clean energy investment credit.’’. 

19 (B) Section 49(a)(1)(C) is amended by 

20 striking ‘‘and’’ at the end of clause (v), by 

21 striking the period at the end of clause (vi) and 

22 inserting a comma, and by adding at the end 

23 the following new clauses: 


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1 ‘‘(vii) the basis of any qualified prop2 erty which is part of a qualified facility 

3 under section 48E, 

4 ‘‘(viii) the basis of any qualified car5 bon capture and sequestration equipment 

6 under section 48E, and 

7 ‘‘(ix) the basis of any energy storage 

8 property under section 48E.’’. 

9 (C) Section 50(a)(2)(E) is amended by in10 serting ‘‘or 48E(e)’’ after ‘‘section 48(b)’’. 

11 (D) The table of sections for subpart E of 

12 part IV of subchapter A of chapter 1 is amend13 ed by inserting after the item relating to section 

14 48D the following new item: 

‘‘48E. Clean energy investment credit.’’. 

15 (3) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall apply to property placed in 

17 service after December 31, 2017, under rules similar 

18 to the rules of section 48(m) of the Internal Revenue 

19 Code of 1986 (as in effect on the day before the 

20 date of the enactment of the Revenue Reconciliation 

21 Act of 1990). 

22 (b) INDIVIDUAL CREDIT.— 

23 (1) IN GENERAL.—Section 25D is amended to 

24 read as follows: 


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1 ‘‘SEC. 25D. CLEAN RESIDENTIAL ENERGY CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.— 

3 ‘‘(1) IN GENERAL.—In the case of an indi4 vidual, there shall be allowed as a credit against the 

5 tax imposed by this chapter for the taxable year an 

6 amount equal to the sum of— 

7 ‘‘(A) the clean energy percentage of the ex8 penditures made by the taxpayer for qualified 

9 property which is— 

10 ‘‘(i) installed in a dwelling unit which 

11 is located in the United States and used as 

12 a residence by the taxpayer, and 

13 ‘‘(ii) placed in service during such tax14 able year, plus 

15 ‘‘(B) 30 percent of the expenditures made 

16 by the taxpayer for energy storage property 

17 which is— 

18 ‘‘(i) installed in a dwelling unit which 

19 is located in the United States and used as 

20 a residence by the taxpayer, and 

21 ‘‘(ii) placed in service during such tax22 able year. 

23 ‘‘(2) CLEAN ENERGY PERCENTAGE.— 

24 ‘‘(A) IN GENERAL.— 


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1 ‘‘(i) MAXIMUM PERCENTAGE.—Except 

2 as provided in clause (ii), the clean energy 

3 percentage is 30 percent. 

4 ‘‘(ii) REDUCTION OF PERCENTAGE

5 BASED ON GREENHOUSE GAS EMISSIONS

6 RATE.—The clean energy percentage shall 

7 be reduced (but not below zero) by an 

8 amount which bears the same ratio to 30 

9 percent as the anticipated greenhouse gas 

10 emissions rate for the qualified property 

11 bears to 372 grams of CO2e per KWh. 

12 ‘‘(B) ROUNDING.—If any amount deter13 mined under subparagraph (A)(ii) is not a mul14 tiple of 1 percent, such amount shall be round15 ed to the nearest multiple of 1 percent. 

16 ‘‘(C) DEFINITIONS.—For purposes of this 

17 section, the terms ‘greenhouse gas emissions 

18 rate’ and ‘CO2e per KWh’ have the same mean19 ings given such terms under subsections (b) and 

20 (e)(1) of section 45S, respectively. 

21 ‘‘(3) ESTABLISHMENT OF SAFE HARBOR FOR

22 QUALIFIED PROPERTY.— 

23 ‘‘(A) IN GENERAL.—The Secretary, in con24 sultation with the Administrator of the Envi25 ronmental Protection Agency, shall, by regulaVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00358 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 tion, establish safe-harbor greenhouse gas emis2 sions rates for types or categories of qualified 

3 property which are installed in a dwelling unit, 

4 which a taxpayer may elect to use for purposes 

5 of this section. 

6 ‘‘(B) ROUNDING.—In establishing the safe7 harbor greenhouse gas emissions rates for 

8 qualified property, the Secretary may round 

9 such rates to the nearest multiple of 37.2 

10 grams of CO2e per KWh (or, in the case of a 

11 greenhouse gas emissions rate which is less 

12 than 18.6 grams of CO2e per KWh, by round13 ing such rate to zero). 

14 ‘‘(b) QUALIFIED PROPERTY.—The term ‘qualified 

15 property’ means property— 

16 ‘‘(1) which is tangible personal property, 

17 ‘‘(2) which is used for the generation of elec18 tricity, 

19 ‘‘(3) which is constructed, reconstructed, erect20 ed, or acquired by the taxpayer, 

21 ‘‘(4) the original use of which commences with 

22 the taxpayer, and 

23 ‘‘(5) which is originally placed in service after 

24 December 31, 2017. 


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1 ‘‘(c) ENERGY STORAGE PROPERTY.—The term ‘en2 ergy storage property’ means property which receives, 

3 stores, and delivers electricity or energy for conversion to 

4 electricity which is consumed by the taxpayer, which may 

5 include— 

6 ‘‘(1) batteries, 

7 ‘‘(2) thermal energy storage systems, 

8 ‘‘(3) fuel cells, 

9 ‘‘(4) any other relevant technology identified by 

10 the Secretary (in consultation with the Secretary of 

11 Energy), and 

12 ‘‘(5) any combination of the properties de13 scribed in paragraphs (1) through (4). 

14 ‘‘(d) CARRYFORWARD OF UNUSED CREDIT.—If the 

15 credit allowable under subsection (a) exceeds the limita16 tion imposed by section 26(a) for such taxable year re17 duced by the sum of the credits allowable under this sub18 part (other than this section), such excess shall be carried 

19 to the succeeding taxable year and added to the credit al20 lowable under subsection (a) for such succeeding taxable 

21 year. 

22 ‘‘(e) CREDIT PHASE-OUT.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

24 if the Secretary determines that the annual green25 house gas emissions from electrical production in the 


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1 United States are equal to or less than the percent2 age specified in section 48E(g), the amount of the 

3 credit allowable under subsection (a) for any quali4 fied property or energy storage property placed in 

5 service during a calendar year described in para6 graph (2) shall be equal to the product of— 

7 ‘‘(A) the amount of the credit determined 

8 under subsection (a) without regard to this sub9 section, multiplied by 

10 ‘‘(B) the phase-out percentage under para11 graph (2). 

12 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

13 percentage under this paragraph is equal to— 

14 ‘‘(A) for property placed in service during 

15 the first calendar year following the calendar 

16 year in which the determination described in 

17 paragraph (1) is made, 75 percent, 

18 ‘‘(B) for property placed in service during 

19 the second calendar year following such deter20 mination year, 50 percent, 

21 ‘‘(C) for property placed in service during 

22 the third calendar year following such deter23 mination year, 25 percent, and 


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1 ‘‘(D) for property placed in service during 

2 any calendar year subsequent to the year de3 scribed in subparagraph (C), 0 percent. 

4 ‘‘(3) DEADLINE TO BEGIN PHASE-OUT.—If the 

5 Secretary, in consultation with the Secretary of En6 ergy and the Administrator of the Environmental 

7 Protection Agency, determines that the annual 

8 greenhouse gas emissions from electrical production 

9 in the United States for each year before calendar 

10 year 2026 are greater than the percentage specified 

11 in section 48E(g), then the determination described 

12 in paragraph (1) shall be deemed to have been made 

13 for calendar year 2025. 

14 ‘‘(f) SPECIAL RULES.—For purposes of this section: 

15 ‘‘(1) LABOR COSTS.—Expenditures for labor 

16 costs properly allocable to the onsite preparation, as17 sembly, or original installation of the qualified prop18 erty or energy storage property and for piping or 

19 wiring to interconnect such property to the dwelling 

20 unit shall be taken into account for purposes of this 

21 section. 

22 ‘‘(2) TENANT-STOCKHOLDER IN COOPERATIVE

23 HOUSING CORPORATION.—In the case of an indi24 vidual who is a tenant-stockholder (as defined in sec25 tion 216) in a cooperative housing corporation (as 


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1 defined in such section), such individual shall be 

2 treated as having made his tenant-stockholder’s pro3 portionate share (as defined in section 216(b)(3)) of 

4 any expenditures of such corporation. 

5 ‘‘(3) CONDOMINIUMS.— 

6 ‘‘(A) IN GENERAL.—In the case of an indi7 vidual who is a member of a condominium man8 agement association with respect to a condo9 minium which the individual owns, such indi10 vidual shall be treated as having made the indi11 vidual’s proportionate share of any expenditures 

12 of such association. 

13 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO14 CIATION.—For purposes of this paragraph, the 

15 term ‘condominium management association’ 

16 means an organization which meets the require17 ments of paragraph (1) of section 528(c) (other 

18 than subparagraph (E) thereof) with respect to 

19 a condominium project substantially all of the 

20 units of which are used as residences. 

21 ‘‘(4) ALLOCATION IN CERTAIN CASES.—If less 

22 than 80 percent of the use of a property is for non23 business purposes, only that portion of the expendi24 tures for such property which is properly allocable to 


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1 use for nonbusiness purposes shall be taken into ac2 count. 

3 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub4 title, if a credit is allowed under this section for any ex5 penditures with respect to any property, the increase in 

6 the basis of such property which would (but for this sub7 section) result from such expenditures shall be reduced by 

8 the amount of the credit so allowed. 

9 ‘‘(h) FINAL GUIDANCE.—Not later than January 1, 

10 2017, the Secretary, in consultation with the Adminis11 trator of the Environmental Protection Agency, shall issue 

12 final guidance regarding implementation of this section, 

13 including calculation of greenhouse gas emission rates for 

14 qualified property and determination of residential clean 

15 energy property credits under this section.’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) Paragraph (1) of section 45(d) is 

18 amended by striking ‘‘Such term’’ and all that 

19 follows through the period and inserting the fol20 lowing: ‘‘Such term shall not include any facil21 ity with respect to which any expenditures for 

22 qualified property (as defined in subsection (b) 

23 of section 25D) which uses wind to produce 

24 electricity is taken into account in determining 

25 the credit under such section.’’. 


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1 (B) Paragraph (34) of section 1016(a) is 

2 amended by striking ‘‘section 25D(f)’’ and in3 serting ‘‘section 25D(h)’’. 

4 (C) The item relating to section 25D in 

5 the table of contents for subpart A of part IV 

6 of subchapter A of chapter 1 is amended to 

7 read as follows: 

‘‘Sec. 25D. Clean residential energy credit.’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this section shall apply to property placed in serv10 ice after December 31, 2017. 

11 SEC. 5013. EXTENSIONS AND MODIFICATIONS OF VARIOUS 

12 ENERGY PROVISIONS. 

13 (a) NONBUSINESS ENERGY PROPERTY.— 

14 (1) IN GENERAL.—Paragraph (2) of section 

15 25C(g) is amended by striking ‘‘December 31, 

16 2014’’ and inserting ‘‘December 31, 2017’’. 

17 (2) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply to property placed in 

19 service after December 31, 2014. 

20 (b) RESIDENTIAL ENERGY EFFICIENT PROPERTY.— 

21 Subsection (g) of section 25D is amended by striking ‘‘De22 cember 31, 2016’’ and inserting ‘‘December 31, 2017’’. 

23 (c) ALTERNATIVE FUEL VEHICLE REFUELING PROP24 ERTY CREDIT.— 


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1 (1) IN GENERAL.—Paragraph (1) of section 

2 30C(g) is amended by striking ‘‘December 31, 

3 2014’’ and inserting ‘‘December 31, 2017’’. 

4 (2) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply to property placed in 

6 service after December 31, 2014. 

7 (d) 2- AND 3-WHEELED PLUG-IN ELECTRIC VEHI8 CLES.— 

9 (1) IN GENERAL.—Subparagraph (E) of section 

10 30D(g) is amended to read as follows: 

11 ‘‘(E) is acquired— 

12 ‘‘(i) after December 31, 2011, and be13 fore January 1, 2014, or 

14 ‘‘(ii) after December 31, 2014, and 

15 before January 1, 2018.’’. 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to vehicles acquired 

18 after December 31, 2014. 

19 (e) ELECTRICITY PRODUCED FROM CERTAIN RE20 NEWABLE RESOURCES.— 

21 (1) IN GENERAL.—The following provisions of 

22 section 45(d) are each amended by striking ‘‘Janu23 ary 1, 2015’’ each place it appears and inserting 

24 ‘‘January 1, 2018’’: 

25 (A) Paragraph (1). 


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1 (B) Paragraph (2)(A). 

2 (C) Paragraph (3)(A). 

3 (D) Paragraph (4)(B). 

4 (E) Paragraph (6). 

5 (F) Paragraph (7). 

6 (G) Paragraph (9). 

7 (H) Paragraph (11)(B). 

8 (2) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall take effect on January 1, 

10 2015. 

11 (f) CREDIT FOR PRODUCTION FROM ADVANCED NU12 CLEAR POWER FACILITIES.—Section 45J(d)(1)(B) is 

13 amended by striking ‘‘2021’’ and inserting ‘‘2018’’. 

14 (g) NEW ENERGY EFFICIENT HOME CREDIT.— 

15 (1) IN GENERAL.—Subsection (g) of section 

16 45L is amended by striking ‘‘December 31, 2014’’ 

17 and inserting ‘‘December 31, 2017’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply to any qualified new 

20 energy efficient home acquired after December 31, 

21 2014. 

22 (h) REPEAL OF ENERGY EFFICIENT APPLIANCE

23 CREDIT.— 


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

2 subchapter A of chapter 1 of subtitle A is amended 

3 by striking section 45M. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Section 38(b) is amended by striking 

6 paragraph (24). 

7 (B) The table of sections for subpart D of 

8 part IV of subchapter A of chapter 1 of subtitle 

9 A is amended by striking the item relating to 

10 section 45M. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall take effect on the date of the 

13 enactment of this Act. 

14 (i) CREDIT FOR CARBON DIOXIDE SEQUESTRA15 TION.—Section 45Q(c) is amended— 

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

17 end, 

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

19 the end and inserting ‘‘, and’’, and 

20 (3) by adding at the end the following new 

21 paragraph: 

22 ‘‘(4) which is placed in service before January 

23 1, 2018.’’. 

24 (j) ENERGY CREDIT.— 


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1 (1) QUALIFIED INVESTMENT CREDIT FACIL2 ITY.— 

3 (A) IN GENERAL.—Section 48(a)(5)(C)(ii) 

4 is amended by striking ‘‘January 1, 2015’’ and 

5 inserting ‘‘January 1, 2018’’. 

6 (B) EFFECTIVE DATE.—The amendments 

7 made by this paragraph shall take effect on 

8 January 1, 2015. 

9 (2) SOLAR ENERGY PROPERTY.—Section 48(a) 

10 is amended— 

11 (A) in paragraphs (2)(A)(i)(II) and 

12 (3)(A)(ii), by striking ‘‘January 1, 2017’’ each 

13 place it appears and inserting ‘‘January 1, 

14 2018’’, and 

15 (B) in paragraph (3)(A)(i), by inserting 

16 ‘‘but only with respect to periods ending before 

17 January 1, 2018’’ after ‘‘swimming pool,’’. 

18 (3) GEOTHERMAL ENERGY PROPERTY.—Section 

19 48(a)(3)(A)(iii) is amended by inserting ‘‘with re20 spect to periods ending before January 1, 2018, 

21 and’’ after ‘‘but only’’. 

22 (4) THERMAL ENERGY PROPERTY.—Section 

23 48(a)(3)(A)(vii) is amended by striking ‘‘January 1, 

24 2017’’ and inserting ‘‘January 1, 2018’’. 


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1 (5) QUALIFIED FUEL CELL PROPERTY.—Sec2 tion 48(c)(1)(D) is amended by striking ‘‘December 

3 31, 2016’’ and inserting ‘‘December 31, 2017’’. 

4 (6) QUALIFIED MICROTURBINE PROPERTY.— 

5 Section 48(c)(2)(D) is amended by striking ‘‘Decem6 ber 31, 2016’’ and inserting ‘‘December 31, 2017’’. 

7 (7) COMBINED HEAT AND POWER SYSTEM

8 PROPERTY.—Section 48(c)(3)(A)(iv) is amended by 

9 striking ‘‘January 1, 2017’’ and inserting ‘‘January 

10 1, 2018’’. 

11 (8) QUALIFIED SMALL WIND ENERGY PROP12 ERTY.—Section 48(c)(4)(C) is amended by striking 

13 ‘‘December 31, 2016’’ and inserting ‘‘December 31, 

14 2017’’. 

15 (k) QUALIFYING ADVANCED ENERGY PROJECT

16 CREDIT.— 

17 (1) IN GENERAL.—Section 48C is amended— 

18 (A) by redesignating subsection (e) as sub19 section (f), and 

20 (B) by inserting after subsection (d) the 

21 following new subsection: 

22 ‘‘(e) ADDITIONAL QUALIFYING ADVANCED ENERGY

23 PROGRAM.— 

24 ‘‘(1) ESTABLISHMENT.— 


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

2 days after the date of enactment of this sub3 section, the Secretary, in consultation with the 

4 Secretary of Energy, shall establish an addi5 tional qualifying advanced energy project pro6 gram to consider and award certifications for 

7 qualified investments eligible for credits under 

8 this section to qualifying advanced energy 

9 project sponsors. 

10 ‘‘(B) LIMITATION.—The total amount of 

11 credits that may be allocated under the pro12 gram described in subparagraph (A) shall not 

13 exceed $5,000,000,000. 

14 ‘‘(2) CERTIFICATION.— 

15 ‘‘(A) APPLICATION PERIOD.—Each appli16 cant for certification under this paragraph shall 

17 submit an application containing such informa18 tion as the Secretary may require during the 2- 

19 year period beginning on the date the Secretary 

20 establishes the program under paragraph (1). 

21 ‘‘(B) TIME TO MEET CRITERIA FOR CER22 TIFICATION.—Each applicant for certification 

23 shall have 1 year from the date of acceptance 

24 by the Secretary of the application during 

25 which to provide to the Secretary evidence that 


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1 the requirements of the certification have been 

2 met. 

3 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

4 which receives a certification shall have 3 years 

5 from the date of issuance of the certification in 

6 order to place the project in service and if such 

7 project is not placed in service by that time pe8 riod, then the certification shall no longer be 

9 valid. 

10 ‘‘(3) SELECTION CRITERIA.—In determining 

11 which qualifying advanced energy projects to certify 

12 under this section, the Secretary shall consider the 

13 same criteria described in subsection (d)(3). 

14 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

15 ‘‘(A) REVIEW.—Not later than 4 years 

16 after the date of enactment of this subsection, 

17 the Secretary shall review the credits allocated 

18 pursuant to this subsection as of such date. 

19 ‘‘(B) REDISTRIBUTION.—The Secretary 

20 may reallocate credits awarded under this sec21 tion if the Secretary determines that— 

22 ‘‘(i) there is an insufficient quantity 

23 of qualifying applications for certification 

24 pending at the time of the review, or 


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1 ‘‘(ii) any certification made pursuant 

2 to paragraph (2) has been revoked pursu3 ant to paragraph (2)(B) because the 

4 project subject to the certification has been 

5 delayed as a result of third party opposi6 tion or litigation to the proposed project. 

7 ‘‘(C) REALLOCATION.—If the Secretary de8 termines that credits under this section are 

9 available for reallocation pursuant to the re10 quirements set forth in paragraph (2), the Sec11 retary is authorized to conduct an additional 

12 program for applications for certification. 

13 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec14 retary shall, upon making a certification under this 

15 subsection, publicly disclose the identity of the appli16 cant and the amount of the credit with respect to 

17 such applicant.’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply to periods after the 

20 date of the enactment of this Act, under rules simi21 lar to the rules of section 48(m) of the Internal Rev22 enue Code of 1986 (as in effect on the day before 

23 the date of the enactment of the Revenue Reconcili24 ation Act of 1990). 


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1 (l) ENERGY EFFICIENT COMMERCIAL BUILDINGS

2 DEDUCTION.— 

3 (1) IN GENERAL.—Subsection (h) of section 

4 179D is amended by striking ‘‘December 31, 2014’’ 

5 and inserting ‘‘December 31, 2017’’. 

6 (2) EFFECTIVE DATE.—The amendments made 

7 by this section shall apply to property placed in serv8 ice after December 31, 2014. 

9 Subtitle B—Clean Fuel Tax Credits 

10 SEC. 5021. CLEAN FUEL PRODUCTION CREDIT. 

11 (a) IN GENERAL.—Subpart D of part IV of sub12 chapter A of chapter 1, as amended by section l01, is 

13 amended by adding at the end the following new section: 

14 ‘‘SEC. 45T. CLEAN FUEL PRODUCTION CREDIT. 

15 ‘‘(a) AMOUNT OF CREDIT.— 

16 ‘‘(1) IN GENERAL.—For purposes of section 38, 

17 the clean fuel production credit for any taxable year 

18 is an amount equal to the product of— 

19 ‘‘(A) $1.00 per energy equivalent of a gal20 lon of gasoline with respect to any transpor21 tation fuel which is— 

22 ‘‘(i) produced by the taxpayer at a 

23 qualified facility, and 

24 ‘‘(ii) sold or used by the taxpayer in 

25 a manner described in paragraph (2), and 


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1 ‘‘(B) the emissions factor for such fuel (as 

2 determined under subsection (b)(2)). 

3 ‘‘(2) SALE OR USE.—For purposes of para4 graph (1)(A)(ii), the transportation fuel is sold or 

5 used in a manner described in this paragraph if such 

6 fuel is— 

7 ‘‘(A) sold by the taxpayer to an unrelated 

8 person— 

9 ‘‘(i) for use by such person in the pro10 duction of a fuel mixture that will be used 

11 as a transportation fuel, 

12 ‘‘(ii) for use by such person as a 

13 transportation fuel in a trade or business, 

14 or 

15 ‘‘(iii) who sells such fuel at retail to 

16 another person and places such fuel in the 

17 fuel tank of such other person, or 

18 ‘‘(B) used or sold by the taxpayer for any 

19 purpose described in subparagraph (A). 

20 ‘‘(3) ROUNDING.—If any amount determined 

21 under paragraph (1) is not a multiple of 0.1 cent, 

22 such amount shall be rounded to the nearest mul23 tiple of 0.1 cent. 

24 ‘‘(b) EMISSIONS FACTORS.— 

25 ‘‘(1) EMISSIONS FACTOR.— 


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1 ‘‘(A) IN GENERAL.—The emissions factor 

2 of a transportation fuel shall be an amount 

3 equal to the quotient of— 

4 ‘‘(i) an amount (not less than zero) 

5 equal to — 

6 ‘‘(I) 77.23, minus 

7 ‘‘(II) the emissions rate for such 

8 fuel, divided by 

9 ‘‘(ii) 77.23. 

10 ‘‘(B) ESTABLISHMENT OF SAFE HARBOR

11 EMISSIONS RATE.—The Secretary, in consulta12 tion with the Administrator of the Environ13 mental Protection Agency, shall establish the 

14 safe harbor emissions rate for similar types and 

15 categories of transportation fuels based on the 

16 amount of lifecycle greenhouse gas emissions 

17 (as described in section 211(o)(1)(H) of the 

18 Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in 

19 effect on the date of the enactment of this sec20 tion) for such fuels, expressed as kilograms of 

21 CO2e per mmBTU, which a taxpayer may elect 

22 to use for purposes of this section. 

23 ‘‘(C) ROUNDING OF SAFE HARBOR EMIS24 SIONS RATE.—The Secretary may round the 

25 safe harbor emissions rates under subparagraph 


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1 (B) to the nearest multiple of 7.723 kilograms 

2 of CO2e per mmBTU, except that, in the case 

3 of an emissions rate that is less than 3.862 

4 kilograms of CO2e per mmBTU, the Secretary 

5 may round such rate to zero. 

6 ‘‘(D) PROVISIONAL SAFE HARBOR EMIS7 SIONS RATE.— 

8 ‘‘(i) IN GENERAL.—In the case of any 

9 transportation fuel for which a safe harbor 

10 emissions rate has not been established by 

11 the Secretary, a taxpayer producing such 

12 fuel may file a petition with the Secretary 

13 for determination of the safe harbor emis14 sions rate with respect to such fuel. 

15 ‘‘(ii) ESTABLISHMENT OF PROVI16 SIONAL AND FINAL SAFE HARBOR EMIS17 SIONS RATE.—In the case of a transpor18 tation fuel for which a petition described in 

19 clause (i) has been filed, the Secretary, in 

20 consultation with the Administrator of the 

21 Environmental Protection Agency, shall— 

22 ‘‘(I) not later than 12 months 

23 after the date on which the petition 

24 was filed, provide a provisional safe 

25 harbor emissions rate for such fuel 


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1 which a taxpayer may use for pur2 poses of this section, and 

3 ‘‘(II) not later than 24 months 

4 after the date on which the petition 

5 was filed, establish the safe harbor 

6 emissions rate for such fuel. 

7 ‘‘(E) ROUNDING.—If any amount deter8 mined under subparagraph (A) is not a multiple 

9 of 0.1, such amount shall be rounded to the 

10 nearest multiple of 0.1. 

11 ‘‘(2) PUBLISHING SAFE HARBOR EMISSIONS

12 RATE.—The Secretary, in consultation with the Ad13 ministrator of the Environmental Protection Agency, 

14 shall publish a table that sets forth the safe harbor 

15 emissions rate (as established pursuant to paragraph 

16 (1)) for similar types and categories of transpor17 tation fuels. 

18 ‘‘(c) INFLATION ADJUSTMENT.— 

19 ‘‘(1) IN GENERAL.—In the case of calendar 

20 years beginning after 2018, the $1.00 amount in 

21 subsection (a)(1)(A) shall be adjusted by multiplying 

22 such amount by the inflation adjustment factor for 

23 the calendar year in which the sale or use of the 

24 transportation fuel occurs. If any amount as in25 creased under the preceding sentence is not a mulVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00378 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 tiple of 1 cent, such amount shall be rounded to the 

2 nearest multiple of 1 cent. 

3 ‘‘(2) INFLATION ADJUSTMENT FACTOR.—For 

4 purposes of paragraph (1), the inflation adjustment 

5 factor shall be the inflation adjustment factor deter6 mined and published by the Secretary pursuant to 

7 section 45S(c), determined by substituting ‘calendar 

8 year 2017’ for ‘calendar year 1992’ in paragraph (3) 

9 thereof. 

10 ‘‘(d) CREDIT PHASE-OUT.— 

11 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

12 if the Secretary, in consultation with the Secretary 

13 of Energy and the Administrator of the Environ14 mental Protection Agency, determines that the 

15 greenhouse gas emissions from transportation fuel 

16 produced and sold at retail annually in the United 

17 States are equal to or less than 72 percent of the 

18 greenhouse gas emissions from transportation fuel 

19 produced and sold at retail in the United States dur20 ing calendar year 2005, the amount of the clean fuel 

21 production credit under this section for any qualified 

22 facility placed in service during a calendar year de23 scribed in paragraph (2) shall be equal to the prod24 uct of— 


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1 ‘‘(A) the amount of the credit determined 

2 under subsection (a) without regard to this sub3 section, multiplied by 

4 ‘‘(B) the phase-out percentage under para5 graph (2). 

6 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

7 percentage under this paragraph is equal to— 

8 ‘‘(A) for a facility placed in service during 

9 the first calendar year following the calendar 

10 year in which the determination described in 

11 paragraph (1) is made, 75 percent, 

12 ‘‘(B) for a facility placed in service during 

13 the second calendar year following such deter14 mination year, 50 percent, 

15 ‘‘(C) for a facility placed in service during 

16 the third calendar year following such deter17 mination year, 25 percent, and 

18 ‘‘(D) for a facility placed in service during 

19 any calendar year subsequent to the year de20 scribed in subparagraph (C), 0 percent. 

21 ‘‘(3) DEADLINE TO BEGIN PHASE-OUT.—If the 

22 Secretary, in consultation with the Secretary of En23 ergy and the Administrator of the Environmental 

24 Protection Agency, determines that the greenhouse 

25 gas emissions from transportation fuel produced and 


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1 sold at retail annually in the United States are, for 

2 each year before calendar year 2026, greater than 

3 the percentage specified in paragraph (1), then the 

4 determination described in such paragraph shall be 

5 deemed to have been made for calendar year 2025. 

6 ‘‘(e) DEFINITIONS.—In this section: 

7 ‘‘(1) mmBTU.—The term ‘mmBTU’ means 

8 1,000,000 British thermal units. 

9 ‘‘(2) CO2e.—The term ‘CO2e’ means, with re10 spect to any greenhouse gas, the equivalent carbon 

11 dioxide. 

12 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse 

13 gas’ has the same meaning given that term under 

14 section 211(o)(1)(G) of the Clean Air Act (42 

15 U.S.C. 7545(o)(1)(G)), as in effect on the date of 

16 the enactment of this section. 

17 ‘‘(4) QUALIFIED FACILITY.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graphs (B) and (C), the term ‘qualified facility’ 

20 means a facility used for the production of 

21 transportation fuels. 

22 ‘‘(B) 10-YEAR PRODUCTION CREDIT.—For 

23 purposes of this section, a facility shall only 

24 qualify as a qualified facility— 


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1 ‘‘(i) in the case of a facility that is 

2 originally placed in service after December 

3 31, 2017, for the 10-year period beginning 

4 on the date such facility is placed in serv5 ice, or 

6 ‘‘(ii) in the case of a facility that is 

7 originally placed in service before January 

8 1, 2018, for the 10-year period beginning 

9 on January 1, 2018. 

10 ‘‘(5) TRANSPORTATION FUEL.—The term 

11 ‘transportation fuel’ means a fuel which is suitable 

12 for use as a fuel in a highway vehicle or aircraft. 

13 ‘‘(f) FINAL GUIDANCE.—Not later than January 1, 

14 2017, the Secretary, in consultation with the Adminis15 trator of the Environmental Protection Agency, shall issue 

16 final guidance regarding implementation of this section, 

17 including calculation of emissions factors for transpor18 tation fuel, the table described in subsection (b)(2), and 

19 the determination of clean fuel production credits under 

20 this section. 

21 ‘‘(g) SPECIAL RULES.— 

22 ‘‘(1) ONLY REGISTERED PRODUCTION IN THE

23 UNITED STATES TAKEN INTO ACCOUNT.— 

24 ‘‘(A) IN GENERAL.—No clean fuel produc25 tion credit shall be determined under subsection 


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1 (a) with respect to any transportation fuel un2 less— 

3 ‘‘(i) the taxpayer is registered as a 

4 producer of clean fuel under section 4101 

5 at the time of production, and 

6 ‘‘(ii) such fuel is produced in the 

7 United States. 

8 ‘‘(B) UNITED STATES.—For purposes of 

9 this paragraph, the term ‘United States’ in10 cludes any possession of the United States. 

11 ‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAX12 PAYER.—In the case of a facility in which more than 

13 1 person has an ownership interest, except to the ex14 tent provided in regulations prescribed by the Sec15 retary, production from the facility shall be allocated 

16 among such persons in proportion to their respective 

17 ownership interests in the gross sales from such fa18 cility. 

19 ‘‘(3) RELATED PERSONS.—Persons shall be 

20 treated as related to each other if such persons 

21 would be treated as a single employer under the reg22 ulations prescribed under section 52(b). In the case 

23 of a corporation which is a member of an affiliated 

24 group of corporations filing a consolidated return, 

25 such corporation shall be treated as selling fuel to 


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1 an unrelated person if such fuel is sold to such a 

2 person by another member of such group. 

3 ‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND

4 TRUSTS.—Under regulations prescribed by the Sec5 retary, rules similar to the rules of subsection (d) of 

6 section 52 shall apply. 

7 ‘‘(5) ALLOCATION OF CREDIT TO PATRONS OF

8 AGRICULTURAL COOPERATIVE.— 

9 ‘‘(A) ELECTION TO ALLOCATE.— 

10 ‘‘(i) IN GENERAL.—In the case of an 

11 eligible cooperative organization, any por12 tion of the credit determined under sub13 section (a) for the taxable year may, at the 

14 election of the organization, be apportioned 

15 among patrons of the organization on the 

16 basis of the amount of business done by 

17 the patrons during the taxable year. 

18 ‘‘(ii) FORM AND EFFECT OF ELEC19 TION.—An election under clause (i) for any 

20 taxable year shall be made on a timely 

21 filed return for such year. Such election, 

22 once made, shall be irrevocable for such 

23 taxable year. Such election shall not take 

24 effect unless the organization designates 

25 the apportionment as such in a written noVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00384 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 tice mailed to its patrons during the pay2 ment period described in section 1382(d). 

3 ‘‘(B) TREATMENT OF ORGANIZATIONS AND

4 PATRONS.—The amount of the credit appor5 tioned to any patrons under subparagraph 

6 (A)— 

7 ‘‘(i) shall not be included in the 

8 amount determined under subsection (a) 

9 with respect to the organization for the 

10 taxable year, and 

11 ‘‘(ii) shall be included in the amount 

12 determined under subsection (a) for the 

13 first taxable year of each patron ending on 

14 or after the last day of the payment period 

15 (as defined in section 1382(d)) for the tax16 able year of the organization or, if earlier, 

17 for the taxable year of each patron ending 

18 on or after the date on which the patron 

19 receives notice from the cooperative of the 

20 apportionment. 

21 ‘‘(C) SPECIAL RULES FOR DECREASE IN

22 CREDITS FOR TAXABLE YEAR.—If the amount 

23 of the credit of a cooperative organization de24 termined under subsection (a) for a taxable 

25 year is less than the amount of such credit 


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1 shown on the return of the cooperative organi2 zation for such year, an amount equal to the 

3 excess of— 

4 ‘‘(i) such reduction, over 

5 ‘‘(ii) the amount not apportioned to 

6 such patrons under subparagraph (A) for 

7 the taxable year, 

8 shall be treated as an increase in tax imposed 

9 by this chapter on the organization. Such in10 crease shall not be treated as tax imposed by 

11 this chapter for purposes of determining the 

12 amount of any credit under this chapter. 

13 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 

14 For purposes of this section the term ‘eligible 

15 cooperative’ means a cooperative organization 

16 described in section 1381(a) which is owned 

17 more than 50 percent by agricultural producers 

18 or by entities owned by agricultural producers. 

19 For this purpose an entity owned by an agricul20 tural producer is one that is more than 50 per21 cent owned by agricultural producers.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 38(b), as amended by section l01, 

24 is amended— 


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1 (A) in paragraph (36), by striking ‘‘plus’’ 

2 at the end, 

3 (B) in paragraph (37), by striking the pe4 riod at the end and inserting ‘‘, plus’’, and 

5 (C) by adding at the end the following new 

6 paragraph: 

7 ‘‘(38) the clean fuel production credit deter8 mined under section 45T(a).’’. 

9 (2) The table of sections for subpart D of part 

10 IV of subchapter A of chapter 1, as amended by sec11 tion l01, is amended by adding at the end the fol12 lowing new item: 

‘‘Sec. 45T. Clean fuel production credit.’’. 

13 (3) Section 4101(a)(1) is amended by inserting 

14 ‘‘every person producing a fuel eligible for the clean 

15 fuel production credit (pursuant to section 45T),’’ 

16 after ‘‘section 6426(b)(4)(A)),’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to transportation fuel produced 

19 after December 31, 2017. 

20 SEC. 5022. TEMPORARY EXTENSION OF EXISTING FUEL IN21 CENTIVES. 

22 (a) SECOND GENERATION BIOFUEL PRODUCER

23 CREDIT.— 

24 (1) IN GENERAL.—Section 40(b)(6) is amend25 ed— 


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1 (A) in subparagraph (E)(i)— 

2 (i) in subclause (I), by striking ‘‘and’’ 

3 at the end, 

4 (ii) in subclause (II), by striking the 

5 period at the end and inserting ‘‘, and’’, 

6 and 

7 (iii) by inserting at the end the fol8 lowing new subclause: 

9 ‘‘(III) qualifies as a transpor10 tation fuel (as defined in section 

11 45T(e)(5)).’’, and 

12 (B) in subparagraph (J)(i), by striking 

13 ‘‘2015’’ and inserting ‘‘2018’’. 

14 (2) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to qualified second 

16 generation biofuel production after December 31, 

17 2014. 

18 (b) BIODIESEL AND RENEWABLE DIESEL USED AS

19 FUEL.— 

20 (1) IN GENERAL.—Section 40A is amended— 

21 (A) in subsection (f)(3)(B), by striking ‘‘or 

22 D396’’, and 

23 (B) in subsection (g), by striking ‘‘2014’’ 

24 and inserting ‘‘2017’’. 


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1 (2) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to fuel sold or used 

3 after December 31, 2014. 

4 (c) CREDIT FOR BIODIESEL AND ALTERNATIVE

5 FUEL MIXTURES.— 

6 (1) IN GENERAL.—Section 6426 is amended— 

7 (A) in subsection (c)(6), by striking 

8 ‘‘2014’’ and inserting ‘‘2017’’, 

9 (B) in subsection (d)— 

10 (i) in paragraph (1), by striking 

11 ‘‘motor vehicle’’ and inserting ‘‘highway ve12 hicle’’, 

13 (ii) in paragraph (2)(D), by striking 

14 ‘‘liquefied’’, and 

15 (iii) in paragraph (5), by striking 

16 ‘‘2014’’ and inserting ‘‘2017’’, and 

17 (C) in subsection (e), by amending para18 graph (3) to read as follows: 

19 ‘‘(3) TERMINATION.—This subsection shall not 

20 apply to any sale or use for any period after— 

21 ‘‘(A) in the case of any alternative fuel 

22 mixture sold or used by the taxpayer for the 

23 purposes described in subsection (d)(1), Decem24 ber 31, 2017, 


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1 ‘‘(B) in the case of any sale or use involv2 ing hydrogen that is not for the purposes de3 scribed in subsection (d)(1), December 31, 

4 2017, and 

5 ‘‘(C) in the case of any sale or use not de6 scribed in subparagraph (A) or (B), December 

7 31, 2014.’’. 

8 (2) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to fuel sold or used 

10 after December 31, 2014. 

11 (d) BIODIESEL, BIODIESEL MIXTURES, AND ALTER12 NATIVE FUELS.— 

13 (1) IN GENERAL.—Section 6427(e)(6) is 

14 amended— 

15 (A) in subparagraph (B), by striking 

16 ‘‘2014’’ and inserting ‘‘2017’’, and 

17 (B) in subparagraph (C), by striking 

18 ‘‘2014’’ and inserting ‘‘2017’’. 

19 (2) EFFECTIVE DATE.—The amendments made 

20 by this subsection shall apply to fuel sold or used 

21 after December 31, 2014. 

22 (e) SPECIAL RULE FOR CERTAIN PERIODS DURING

23 2015.—Notwithstanding any other provision of law, in the 

24 case of— 


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1 (1) any biodiesel mixture credit properly deter2 mined under section 6426(c) of the Internal Revenue 

3 Code of 1986 for periods after December 31, 2014, 

4 and on or before the last day of the first calendar 

5 quarter ending after the date of the enactment of 

6 this Act, and 

7 (2) any alternative fuel credit properly deter8 mined under section 6426(d) of such Code for such 

9 periods, 

10 such credit shall be allowed, and any refund or payment 

11 attributable to such credit (including any payment under 

12 section 6427(e) of such Code) shall be made, only in such 

13 manner as the Secretary of the Treasury (or the Sec14 retary’s delegate) shall provide. Such Secretary shall issue 

15 guidance within 30 days after the date of the enactment 

16 of this Act providing for a one-time submission of claims 

17 covering periods described in the preceding sentence. Such 

18 guidance shall provide for a 180-day period for the sub19 mission of such claims (in such manner as prescribed by 

20 such Secretary) to begin not later than 30 days after such 

21 guidance is issued. Such claims shall be paid by such Sec22 retary not later than 60 days after receipt. If such Sec23 retary has not paid pursuant to a claim filed under this 

24 subsection within 60 days after the date of the filing of 

25 such claim, the claim shall be paid with interest from such 


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1 date determined by using the overpayment rate and meth2 od under section 6621 of such Code. 

3 Subtitle C—Energy Efficiency 

4 Incentives 

5 SEC. 5031. CREDIT FOR NEW ENERGY EFFICIENT RESIDEN6 TIAL BUILDINGS. 

7 (a) IN GENERAL.—Section 45L is amended to read 

8 as follows: 

9 ‘‘SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec11 tion 38, in the case of an eligible contractor, the new en12 ergy efficient home credit for the taxable year is the appli13 cable amount for each qualified residence which is— 

14 ‘‘(1) constructed by the eligible contractor, and 

15 ‘‘(2) acquired by a person from such eligible 

16 contractor for use as a residence during the taxable 

17 year. 

18 ‘‘(b) APPLICABLE AMOUNT.— 

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

20 (a), the applicable amount shall be an amount equal 

21 to $1,500 increased (but not above $3,000) by $100 

22 for every 5 percentage points by which the efficiency 

23 ratio for the qualified residence is certified to be 

24 greater than 25 percent. 


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1 ‘‘(2) EFFICIENCY RATIO.—For purposes of this 

2 section, the efficiency ratio of a qualified residence 

3 shall be equal to the quotient, expressed as a per4 centage, obtained by dividing— 

5 ‘‘(A) an amount equal to the difference be6 tween— 

7 ‘‘(i) the annual level of energy con8 sumption of the qualified residence, and 

9 ‘‘(ii) the annual level of energy con10 sumption of the baseline residence, by 

11 ‘‘(B) the annual level of energy consump12 tion of the baseline residence. 

13 ‘‘(3) BASELINE RESIDENCE.—For purposes of 

14 this section, the baseline residence shall be a resi15 dence which is— 

16 ‘‘(A) comparable to the qualified residence, 

17 and 

18 ‘‘(B) constructed in accordance with the 

19 standards of the 2015 International Energy 

20 Conservation Code, as such Code (including 

21 supplements) is in effect on the date of the en22 actment of the American Energy Innovation 

23 Act. 

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


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1 ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligi2 ble contractor’ means— 

3 ‘‘(A) the person who constructed the quali4 fied residence, or 

5 ‘‘(B) in the case of a qualified residence 

6 which is a manufactured home, the manufac7 tured home producer of such residence. 

8 ‘‘(2) QUALIFIED RESIDENCE.—The term ‘quali9 fied residence’ means a dwelling unit— 

10 ‘‘(A) located in the United States, 

11 ‘‘(B) the construction of which is substan12 tially completed after the date of the enactment 

13 of this section, and 

14 ‘‘(C) which is certified to have an annual 

15 level of energy consumption that is less than 

16 the baseline residence and an efficiency ratio of 

17 not less than 25 percent. 

18 ‘‘(3) CONSTRUCTION.—The term ‘construction’ 

19 does not include substantial reconstruction or reha20 bilitation. 

21 ‘‘(d) CERTIFICATION.— 

22 ‘‘(1) IN GENERAL.—A certification described in 

23 this section shall be made— 

24 ‘‘(A) in accordance with guidance pre25 scribed by, and 


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1 ‘‘(B) by a third-party that is accredited by 

2 a certification program approved by, 

3 the Secretary, in consultation with the Secretary of 

4 Energy. Such guidance shall specify procedures and 

5 methods for calculating annual energy consumption 

6 levels, and shall include requirements to ensure the 

7 safe operation of energy efficiency improvements and 

8 that all improvements are installed according to the 

9 applicable standards of such certification program. 

10 ‘‘(2) COMPUTER SOFTWARE.— 

11 ‘‘(A) IN GENERAL.—Any calculation under 

12 paragraph (1) shall be prepared by qualified 

13 computer software. 

14 ‘‘(B) QUALIFIED COMPUTER SOFTWARE.— 

15 For purposes of this paragraph, the term 

16 ‘qualified computer software’ means software— 

17 ‘‘(i) for which the software designer 

18 has certified that the software meets all 

19 procedures and detailed methods for calcu20 lating energy consumption levels as re21 quired by the Secretary, and 

22 ‘‘(ii) which provides such forms as re23 quired to be filed by the Secretary in con24 nection with energy consumption levels and 

25 the credit allowed under this section. 


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1 ‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub2 title, if a credit is allowed under this section in connection 

3 with any expenditure for any property (other than a quali4 fied low-income building, as described in section 42(c)(2)), 

5 the increase in the basis of such property which would (but 

6 for this subsection) result from such expenditure shall be 

7 reduced by the amount of the credit so determined. 

8 ‘‘(f) COORDINATION WITH INVESTMENT CREDITS.— 

9 For purposes of this section, expenditures taken into ac10 count under section 25D or 47 shall not be taken into 

11 account under this section.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to any qualified residence acquired 

14 after December 31, 2017. 

15 SEC. 5032. ENERGY EFFICIENCY CREDIT FOR EXISTING 

16 RESIDENTIAL BUILDINGS. 

17 (a) IN GENERAL.—Section 25C is amended to read 

18 as follows: 

19 ‘‘SEC. 25C. CREDIT FOR ENERGY EFFICIENCY IMPROVE20 MENTS TO RESIDENTIAL BUILDINGS. 

21 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in22 dividual, there shall be allowed as a credit against the tax 

23 imposed by this chapter for the taxable year an amount 

24 equal to the lesser of— 


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1 ‘‘(1) the applicable amount for the qualified res2 idence based on energy efficiency improvements 

3 made by the taxpayer and placed in service during 

4 such taxable year, or 

5 ‘‘(2) 30 percent of the amount paid or incurred 

6 by the taxpayer for energy efficiency improvements 

7 made to the qualified residence that were placed in 

8 service during such taxable year. 

9 ‘‘(b) APPLICABLE AMOUNT.— 

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

11 (a)(1), the applicable amount shall be an amount 

12 equal to $1,750 increased (but not above $6,500) by 

13 $300 for every 5 percentage points by which the effi14 ciency ratio for the qualified residence is certified to 

15 be greater than 20 percent. 

16 ‘‘(2) EFFICIENCY RATIO.—For purposes of this 

17 section, the efficiency ratio of a qualified residence 

18 shall be equal to the quotient, expressed as a per19 centage, obtained by dividing— 

20 ‘‘(A) an amount equal to the difference be21 tween— 

22 ‘‘(i) the projected annual level of en23 ergy consumption of the qualified residence 

24 after the energy efficiency improvements 

25 have been placed in service, and 


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1 ‘‘(ii) the annual level of energy con2 sumption of such qualified residence prior 

3 to the energy efficiency improvements 

4 being placed in service, by 

5 ‘‘(B) the annual level of energy consump6 tion described in subparagraph (A)(ii). 

7 ‘‘(3) COORDINATION WITH CREDIT FOR RESI8 DENTIAL ENERGY EFFICIENT PROPERTY.—For pur9 poses of paragraph (2)(A), the determination of the 

10 difference in annual levels of energy consumption of 

11 the qualified residence shall not include any reduc12 tion in net energy consumption related to qualified 

13 property or energy storage property for which a 

14 credit was allowed under section 25D. 

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

16 ‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali17 fied residence’ means a dwelling unit— 

18 ‘‘(A) located in the United States, 

19 ‘‘(B) owned and used by the taxpayer as 

20 the taxpayer’s principal residence (within the 

21 meaning of section 121), and 

22 ‘‘(C) which is certified to have— 

23 ‘‘(i) a projected annual level of energy 

24 consumption after the energy efficiency im25 provements have been placed in service 


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1 that is less than the annual level of energy 

2 consumption prior to the energy efficiency 

3 improvements being placed in service, and 

4 ‘‘(ii) an efficiency ratio of not less 

5 than 20 percent. 

6 ‘‘(2) ENERGY EFFICIENCY IMPROVEMENTS.— 

7 ‘‘(A) IN GENERAL.—The term ‘energy effi8 ciency improvements’ means any property in9 stalled on or in a dwelling unit which has been 

10 certified to reduce the level of energy consump11 tion for such unit or to provide for onsite gen12 eration of electricity or useful thermal energy, 

13 provided that— 

14 ‘‘(i) the original use of such property 

15 commences with the taxpayer, and 

16 ‘‘(ii) such property reasonably can be 

17 expected to remain in use for at least 5 

18 years. 

19 ‘‘(B) AMOUNTS PAID OR INCURRED FOR

20 ENERGY EFFICIENCY IMPROVEMENTS.—For 

21 purposes of subsection (a)(2), the amount paid 

22 or incurred by the taxpayer— 

23 ‘‘(i) shall include expenditures for de24 sign and for labor costs properly allocable 


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1 to the onsite preparation, assembly, or 

2 original installation of the property, and 

3 ‘‘(ii) shall not include any expendi4 tures related to expansion of the building 

5 envelope. 

6 ‘‘(d) SPECIAL RULES.—For purposes of this section: 

7 ‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE

8 HOUSING CORPORATION.—In the case of an indi9 vidual who is a tenant-stockholder (as defined in sec10 tion 216) in a cooperative housing corporation (as 

11 defined in such section), such individual shall be 

12 treated as having made his tenant-stockholder’s pro13 portionate share (as defined in section 216(b)(3)) of 

14 any expenditures for energy efficiency improvements 

15 of such corporation. 

16 ‘‘(2) CONDOMINIUMS.— 

17 ‘‘(A) IN GENERAL.—In the case of an indi18 vidual who is a member of a condominium man19 agement association with respect to a condo20 minium which the individual owns, such indi21 vidual shall be treated as having made the indi22 vidual’s proportionate share of any expenditures 

23 for energy efficiency improvements of such as24 sociation. 


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1 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO2 CIATION.—For purposes of this paragraph, the 

3 term ‘condominium management association’ 

4 means an organization which meets the require5 ments of paragraph (1) of section 528(c) (other 

6 than subparagraph (E) thereof) with respect to 

7 a condominium project substantially all of the 

8 units of which are used as residences. 

9 ‘‘(3) ALLOCATION IN CERTAIN CASES.—If less 

10 than 80 percent of the use of a property is for non11 business purposes, only that portion of the expendi12 tures for energy efficiency improvements for such 

13 property which is properly allocable to use for non14 business purposes shall be taken into account. 

15 ‘‘(e) CERTIFICATION.— 

16 ‘‘(1) IN GENERAL.—A certification described in 

17 this section shall be made— 

18 ‘‘(A) in accordance with guidance pre19 scribed by, and 

20 ‘‘(B) by a third-party that is accredited by 

21 a certification program approved by, 

22 the Secretary, in consultation with the Secretary of 

23 Energy. Such guidance shall specify procedures and 

24 methods for calculating annual energy consumption 

25 levels, with such calculations to take into account 


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1 onsite generation of electricity or useful thermal en2 ergy, and shall include requirements to ensure the 

3 safe operation of energy efficiency improvements and 

4 that all improvements are installed according to the 

5 applicable standards of such certification program. 

6 ‘‘(2) COMPUTER SOFTWARE.— 

7 ‘‘(A) IN GENERAL.—Any calculation under 

8 paragraph (1) shall be prepared by qualified 

9 computer software. 

10 ‘‘(B) QUALIFIED COMPUTER SOFTWARE.— 

11 For purposes of this paragraph, the term 

12 ‘qualified computer software’ has the same 

13 meaning given such term under section 

14 45L(d)(2). 

15 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub16 title, if a credit is allowed under this section for any ex17 penditures with respect to any energy efficiency improve18 ments, the increase in the basis of such property which 

19 would (but for this subsection) result from such expendi20 tures shall be reduced by the amount of the credit so al21 lowed. 

22 ‘‘(g) COORDINATION WITH INVESTMENT CREDITS.— 

23 For purposes of this section, expenditures taken into ac24 count under section 25D or 47 shall not be taken into 

25 account under this section.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for subpart A of part IV of subchapter A of chapter 

3 1 is amended by striking the item relating to section 25C 

4 and inserting after the item relating to section 25B the 

5 following item: 

‘‘Sec. 25C. Credit for energy efficiency improvements to residential buildings.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to any energy efficiency improve8 ments placed in service after December 31, 2017. 

9 SEC. 5033. DEDUCTION FOR NEW ENERGY EFFICIENT COM10 MERCIAL BUILDINGS. 

11 (a) IN GENERAL.—Section 179D is amended to read 

12 as follows: 

13 ‘‘SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDING 

14 DEDUCTION. 

15 ‘‘(a) IN GENERAL.—There shall be allowed as a de16 duction an amount equal to the applicable amount for each 

17 qualified building placed in service by the taxpayer during 

18 the taxable year. 

19 ‘‘(b) APPLICABLE AMOUNT.— 

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

21 (a), the applicable amount shall be an amount equal 

22 to the product of— 

23 ‘‘(A) the applicable dollar value, and 

24 ‘‘(B) the square footage of the qualified 

25 building. 


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1 ‘‘(2) APPLICABLE DOLLAR VALUE.—For pur2 poses of paragraph (1)(A), the applicable dollar 

3 value shall be an amount equal to $1.00 increased 

4 (but not above $4.75) by $0.25 for every 5 percent5 age points by which the efficiency ratio for the quali6 fied building is certified to be greater than 25 per7 cent. 

8 ‘‘(3) EFFICIENCY RATIO.—For purposes of this 

9 section, the efficiency ratio of a qualified building 

10 shall be equal to the quotient, expressed as a per11 centage, obtained by dividing— 

12 ‘‘(A) an amount equal to the difference be13 tween— 

14 ‘‘(i) the annual level of energy con15 sumption of the qualified building, and 

16 ‘‘(ii) the annual level of energy con17 sumption of the baseline building, by 

18 ‘‘(B) the annual level of energy consump19 tion of the baseline building. 

20 ‘‘(4) BASELINE BUILDING.—For purposes of 

21 this section, the baseline building shall be a building 

22 which— 

23 ‘‘(A) is comparable to the qualified build24 ing, and 


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1 ‘‘(B) meets the minimum requirements of 

2 Standard 90.1-2013 of the American Society of 

3 Heating, Refrigerating, and Air Conditioning 

4 Engineers and the Illuminating Engineering So5 ciety of North America (as in effect on Decem6 ber 31, 2014). 

7 ‘‘(c) QUALIFIED BUILDING.—The term ‘qualified 

8 building’ means a building— 

9 ‘‘(1) located in the United States, 

10 ‘‘(2) which is owned by the taxpayer, and 

11 ‘‘(3) which is certified to have an annual level 

12 of energy consumption that is less than the baseline 

13 building and an efficiency ratio of not less than 25 

14 percent. 

15 ‘‘(d) ALLOCATION OF DEDUCTION.— 

16 ‘‘(1) IN GENERAL.—In the case of a qualified 

17 building owned by an eligible entity, the Secretary 

18 shall promulgate regulations to allow the allocation 

19 of the deduction to the person primarily responsible 

20 for designing the property in lieu of the owner of 

21 such property, with such person to be treated as the 

22 taxpayer for purposes of this section. 

23 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this 

24 subsection, the term ‘eligible entity’ means— 


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1 ‘‘(A) a Federal, State, or local government 

2 or a political subdivision thereof, 

3 ‘‘(B) an Indian tribe (as defined in section 

4 45A(c)(6)), or 

5 ‘‘(C) an organization described in section 

6 501(c) and exempt from tax under section 

7 501(a). 

8 ‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub9 title, if a deduction is allowed under this section with re10 spect to any qualified building, the basis of such property 

11 shall be reduced by the amount of the deduction so al12 lowed. 

13 ‘‘(f) CERTIFICATION.— 

14 ‘‘(1) IN GENERAL.—A certification described in 

15 this section shall be made— 

16 ‘‘(A) in accordance with guidance pre17 scribed by, and 

18 ‘‘(B) by a third-party that is accredited by 

19 a certification program approved by, 

20 the Secretary, in consultation with the Secretary of 

21 Energy. Such guidance shall specify procedures and 

22 methods for calculating annual energy consumption 

23 levels, and shall include requirements to ensure the 

24 safe operation of energy efficiency improvements and 


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1 that all improvements are installed according to the 

2 applicable standards of such certification program. 

3 ‘‘(2) COMPUTER SOFTWARE.— 

4 ‘‘(A) IN GENERAL.—Any calculation under 

5 paragraph (1) shall be prepared by qualified 

6 computer software. 

7 ‘‘(B) QUALIFIED COMPUTER SOFTWARE.— 

8 For purposes of this paragraph, the term 

9 ‘qualified computer software’ means software— 

10 ‘‘(i) for which the software designer 

11 has certified that the software meets all 

12 procedures and detailed methods for calcu13 lating energy consumption levels as re14 quired by the Secretary, and 

15 ‘‘(ii) which provides such forms as re16 quired to be filed by the Secretary in con17 nection with energy consumption levels and 

18 the deduction allowed under this section.’’. 

19 (b) CONFORMING AMENDMENT.—The table of sec20 tions for part VI of subchapter B of chapter 1 is amended 

21 by striking the item relating to section 179D and inserting 

22 after the item relating to section 179C the following item: 

‘‘Sec. 179D. Energy efficient commercial building deduction.’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to any qualified building placed 

25 in service after December 31, 2017. 


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1 SEC. 5034. ENERGY EFFICIENCY DEDUCTION FOR EXISTING 

2 COMMERCIAL BUILDINGS. 

3 (a) IN GENERAL.—Part VI of subchapter B of chap4 ter 1 is amended by inserting after section 179E the fol5 lowing new section: 

6 ‘‘SEC. 179F. DEDUCTION FOR ENERGY EFFICIENCY IM7 PROVEMENTS TO COMMERCIAL BUILDINGS. 

8 ‘‘(a) IN GENERAL.—There shall be allowed as a de9 duction an amount equal to the lesser of— 

10 ‘‘(1) the applicable amount for the qualified 

11 building based on energy efficiency improvements 

12 made by the taxpayer and placed in service during 

13 the taxable year, or 

14 ‘‘(2) 30 percent of the amount paid or incurred 

15 by the taxpayer for energy efficiency improvements 

16 made to the qualified building which were placed in 

17 service during the taxable year. 

18 ‘‘(b) APPLICABLE AMOUNT.— 

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

20 (a), the applicable amount shall be an amount equal 

21 to the product of— 

22 ‘‘(A) the applicable dollar value, and 

23 ‘‘(B) the square footage of the qualified 

24 building. 

25 ‘‘(2) APPLICABLE DOLLAR VALUE.—For pur26 poses of paragraph (1), the applicable dollar value 


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1 shall be an amount equal to $1.25 increased (but 

2 not above $9.25) by $0.50 for every 5 percentage 

3 points by which the efficiency ratio for the qualified 

4 building is certified to be greater than 20 percent. 

5 ‘‘(3) EFFICIENCY RATIO.—For purposes of this 

6 section, the efficiency ratio of a qualified building 

7 shall be equal to the quotient, expressed as a per8 centage, obtained by dividing— 

9 ‘‘(A) an amount equal to the difference be10 tween— 

11 ‘‘(i) the projected annual level of en12 ergy consumption of the qualified building 

13 after the energy efficiency improvements 

14 have been placed in service, and 

15 ‘‘(ii) the annual level of energy con16 sumption of such qualified building prior 

17 to the energy efficiency improvements 

18 being placed in service, by 

19 ‘‘(B) the annual level of energy consump20 tion described in subparagraph (A)(ii). 

21 ‘‘(4) COORDINATION WITH CLEAN ENERGY IN22 VESTMENT CREDIT.—For purposes of paragraph 

23 (3)(A), the determination of the difference in annual 

24 levels of energy consumption of the qualified build25 ing shall not include any reduction in net energy 


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1 consumption related to qualified property or energy 

2 storage property for which a credit was allowed 

3 under section 48E. 

4 ‘‘(c) DEFINITIONS.— 

5 ‘‘(1) QUALIFIED BUILDING.—The term ‘quali6 fied building’ means a building— 

7 ‘‘(A) located in the United States, 

8 ‘‘(B) which is owned by the taxpayer, and 

9 ‘‘(C) which is certified to have— 

10 ‘‘(i) a projected annual level of energy 

11 consumption after the energy efficiency im12 provements have been placed in service 

13 that is less than the annual level of energy 

14 consumption prior to the energy efficiency 

15 improvements being placed in service, and 

16 ‘‘(ii) an efficiency ratio of not less 

17 than 20 percent. 

18 ‘‘(2) ENERGY EFFICIENCY IMPROVEMENTS.— 

19 ‘‘(A) IN GENERAL.—The term ‘energy effi20 ciency improvements’ means any property in21 stalled on or in a qualified building which has 

22 been certified to reduce the level of energy con23 sumption for such building or to increase onsite 

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1 tion (or amortization in lieu of depreciation) is 

2 allowable with respect to such property. 

3 ‘‘(B) AMOUNTS PAID OR INCURRED FOR

4 ENERGY EFFICIENCY IMPROVEMENTS.—For 

5 purposes of subsection (a)(2), the amount paid 

6 or incurred by the taxpayer— 

7 ‘‘(i) shall include expenditures for de8 sign and for labor costs properly allocable 

9 to the onsite preparation, assembly, or 

10 original installation of the property, and 

11 ‘‘(ii) shall not include any expendi12 tures related to expansion of the building 

13 envelope. 

14 ‘‘(d) CERTIFICATION.— 

15 ‘‘(1) IN GENERAL.—A certification described in 

16 this section shall be made— 

17 ‘‘(A) in accordance with guidance pre18 scribed by, and 

19 ‘‘(B) by a third-party that is accredited by 

20 a certification program approved by, 

21 the Secretary, in consultation with the Secretary of 

22 Energy. Such guidance shall specify procedures and 

23 methods for calculating annual energy consumption 

24 levels, with such calculations to take into account 

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1 ergy, and shall include requirements to ensure the 

2 safe operation of energy efficiency improvements and 

3 that all improvements are installed according to the 

4 applicable standards of such certification program. 

5 ‘‘(2) COMPUTER SOFTWARE.— 

6 ‘‘(A) IN GENERAL.—Any calculation under 

7 paragraph (1) shall be prepared by qualified 

8 computer software. 

9 ‘‘(B) QUALIFIED COMPUTER SOFTWARE.— 

10 For purposes of this paragraph, the term 

11 ‘qualified computer software’ has the same 

12 meaning given such term under section 

13 179D(f)(2). 

14 ‘‘(e) ALLOCATION OF DEDUCTION.— 

15 ‘‘(1) IN GENERAL.—In the case of a qualified 

16 building owned by an eligible entity, the Secretary 

17 shall promulgate regulations to allow the allocation 

18 of the deduction to the person primarily responsible 

19 for designing the energy efficiency improvements in 

20 lieu of the owner of such property, with such person 

21 to be treated as the taxpayer for purposes of this 

22 section. 

23 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this 

24 subsection, the term ‘eligible entity’ has the same 

25 meaning given such term under section 179D(d)(2). 


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1 ‘‘(f) BASIS REDUCTION.—For purposes of this sub2 title, if a deduction is allowed under this section with re3 spect to any energy efficiency improvements, the basis of 

4 such property shall be reduced by the amount of the de5 duction so allowed. 

6 ‘‘(g) COORDINATION WITH OTHER CREDITS.—For 

7 purposes of this section, expenditures taken into account 

8 under section 47 or 48E shall not be taken into account 

9 under this section.’’. 

10 (b) CONFORMING AMENDMENT.— 

11 (1) Section 263(a) is amended— 

12 (A) in subparagraph (K), by striking ‘‘or’’ 

13 at the end, 

14 (B) in subparagraph (L), by striking the 

15 period and inserting ‘‘, or’’, and 

16 (C) by inserting at the end the following 

17 new subparagraph: 

18 ‘‘(M) expenditures for which a deduction is 

19 allowed under section 179F.’’. 

20 (2) Section 312(k)(3)(B) is amended— 

21 (A) in the heading, by striking ‘‘OR 179E’’ 

22 and inserting ‘‘179E, OR 179F’’, and 

23 (B) by striking ‘‘or 179E’’ and inserting 

24 ‘‘179E, or 179F’’. 

25 (3) Section 1016(a) is amended— 


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1 (A) in paragraph (36), by striking ‘‘and’’ 

2 at the end, 

3 (B) in paragraph (37), by striking the pe4 riod at the end and inserting ‘‘, and’’, and 

5 (C) by inserting at the end the following 

6 new paragraph: 

7 ‘‘(38) to the extent provided in section 

8 179D(f).’’. 

9 (4) Section 1245(a) is amended— 

10 (A) in paragraph (2)(C), by inserting 

11 ‘‘179F,’’ after ‘‘179E,’’, and 

12 (B) in paragraph (3)(C), by inserting 

13 ‘‘179F,’’ after ‘‘179E,’’. 

14 (5) The table of sections for part VI of sub15 chapter B of chapter 1 is amended by inserting after 

16 the item relating to section 179E the following new 

17 item: 

‘‘Sec. 179F. Deduction for energy efficiency improvements to commercial buildings.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to any energy efficiency improve20 ments placed in service after December 31, 2017. 


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1 Subtitle D—Clean Electricity and 

2 Fuel Bonds 

3 SEC. 5041. CLEAN ENERGY BONDS. 

4 (a) IN GENERAL.—Subpart J of part IV of sub5 chapter A of chapter 1 is amended by adding at the end 

6 the following new section: 

7 ‘‘SEC. 54BB. CLEAN ENERGY BONDS. 

8 ‘‘(a) IN GENERAL.—If a taxpayer holds a clean en9 ergy bond on one or more interest payment dates of the 

10 bond during any taxable year, there shall be allowed as 

11 a credit against the tax imposed by this chapter for the 

12 taxable year an amount equal to the sum of the credits 

13 determined under subsection (b) with respect to such 

14 dates. 

15 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

16 determined under this subsection with respect to any in17 terest payment date for a clean energy bond is 28 percent 

18 of the amount of interest payable by the issuer with re19 spect to such date. 

20 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

21 ‘‘(1) IN GENERAL.—The credit allowed under 

22 subsection (a) for any taxable year shall not exceed 

23 the excess of— 


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1 ‘‘(A) the sum of the regular tax liability 

2 (as defined in section 26(b)) plus the tax im3 posed by section 55, over 

4 ‘‘(B) the sum of the credits allowable 

5 under this part (other than subpart C and this 

6 subpart). 

7 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

8 credit allowable under subsection (a) exceeds the 

9 limitation imposed by paragraph (1) for such taxable 

10 year, such excess shall be carried to the succeeding 

11 taxable year and added to the credit allowable under 

12 subsection (a) for such taxable year (determined be13 fore the application of paragraph (1) for such suc14 ceeding taxable year). 

15 ‘‘(d) CLEAN ENERGY BOND.— 

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, the term ‘clean energy bond’ means any bond 

18 issued as part of an issue if— 

19 ‘‘(A) 100 percent of the excess of the avail20 able project proceeds (as defined in section 

21 54A(e)(4)) of such issue over the amounts in a 

22 reasonably required reserve (within the meaning 

23 of section 150(a)(3)) with respect to such issue 

24 are to be used for capital expenditures incurred 


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1 by an entity described in subparagraph (B) for 

2 1 or more qualified facilities, 

3 ‘‘(B) the bond is issued by— 

4 ‘‘(i) a governmental body (as defined 

5 in paragraph (3) of section 54C(d)), 

6 ‘‘(ii) a public power provider (as de7 fined in paragraph (2) of such section), or 

8 ‘‘(iii) a cooperative electric company 

9 (as defined in paragraph (4) of such sec10 tion), and 

11 ‘‘(C) the issuer makes an irrevocable elec12 tion to have this section apply. 

13 ‘‘(2) APPLICABLE RULES.—For purposes of ap14 plying paragraph (1)— 

15 ‘‘(A) for purposes of section 149(b), a 

16 clean energy bond shall not be treated as feder17 ally guaranteed by reason of the credit allowed 

18 under subsection (a) or section 6433, 

19 ‘‘(B) for purposes of section 148, the yield 

20 on a clean energy bond shall be determined 

21 without regard to the credit allowed under sub22 section (a), and 

23 ‘‘(C) a bond shall not be treated as a clean 

24 energy bond if the issue price has more than a 

25 de minimis amount (determined under rules 


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1 similar to the rules of section 1273(a)(3)) of 

2 premium over the stated principal amount of 

3 the bond. 

4 ‘‘(3) QUALIFIED FACILITY.—The term ‘quali5 fied facility’ means a facility— 

6 ‘‘(A) which is described in subsection 

7 (e)(3) of section 45S and has a greenhouse gas 

8 emissions rate of less than 186 grams of CO2e 

9 per KWh (as such terms are defined in sub10 sections (b)(1) and (e)(1) of such section), or 

11 ‘‘(B) which is described in subsection 

12 (e)(4) of section 45T and only produces trans13 portation fuel which has an emissions rate of 

14 less than 38.62 kilograms of CO2e per mmBTU 

15 (as such terms are defined in subsections (b) 

16 and (e) of such section). 

17 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of 

18 this section, the term ‘interest payment date’ means any 

19 date on which the holder of record of the clean energy 

20 bond is entitled to a payment of interest under such bond. 

21 ‘‘(f) CREDIT PHASE OUT.— 

22 ‘‘(1) ELECTRICAL PRODUCTION.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), in the case of a clean energy bond 

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1 penditures incurred by an entity for a qualified 

2 facility described in subsection (d)(3)(A), if the 

3 Secretary, in consultation with the Secretary of 

4 Energy and the Administrator of the Environ5 mental Protection Agency, determines that the 

6 annual greenhouse gas emissions from electrical 

7 production in the United States are equal to or 

8 less than the percentage specified in section 

9 45S(d)(1), the amount of the credit determined 

10 under subsection (b) with respect to any clean 

11 energy bond issued during a calendar year de12 scribed in paragraph (3) shall be equal to the 

13 product of— 

14 ‘‘(i) the amount determined under 

15 subsection (b) without regard to this sub16 section, multiplied by 

17 ‘‘(ii) the phase-out percentage under 

18 paragraph (3). 

19 ‘‘(B) DEADLINE TO BEGIN PHASE-OUT.— 

20 If the Secretary, in consultation with the Sec21 retary of Energy and the Administrator of the 

22 Environmental Protection Agency, determines 

23 that the annual greenhouse gas emissions from 

24 electrical production in the United States for 

25 each year before calendar year 2026 are greater 


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1 than the percentage specified in section 

2 45S(d)(1), then the determination described in 

3 subparagraph (A) shall be deemed to have been 

4 made for calendar year 2025. 

5 ‘‘(2) FUEL PRODUCTION.— 

6 ‘‘(A) IN GENERAL.—Subject to subpara7 graph (B), in the case of a clean energy bond 

8 for which the proceeds are used for capital ex9 penditures incurred by an entity for a qualified 

10 facility described in subsection (d)(3)(B), if the 

11 Secretary, in consultation with the Secretary of 

12 Energy and the Administrator of the Environ13 mental Protection Agency, determines that the 

14 annual greenhouse gas emissions from transpor15 tation fuel produced and sold at retail annually 

16 in the United States are equal to or less than 

17 the percentage specified in section 45T(d)(1), 

18 the amount of the credit determined under sub19 section (b) with respect to any clean energy 

20 bond issued during a calendar year described in 

21 paragraph (3) shall be equal to the product 

22 of— 

23 ‘‘(i) the amount determined under 

24 subsection (b) without regard to this sub25 section, multiplied by 


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1 ‘‘(ii) the phase-out percentage under 

2 paragraph (3). 

3 ‘‘(B) DEADLINE TO BEGIN PHASE-OUT.— 

4 If the Secretary, in consultation with the Sec5 retary of Energy and the Administrator of the 

6 Environmental Protection Agency, determines 

7 that the annual greenhouse gas emissions from 

8 transportation fuel produced and sold at retail 

9 annually in the United States for each year be10 fore calendar year 2026 are greater than the 

11 percentage specified in section 45T(d)(1), then 

12 the determination described in subparagraph 

13 (A) shall be deemed to have been made for cal14 endar year 2025. 

15 ‘‘(3) PHASE-OUT PERCENTAGE.—The phase-out 

16 percentage under this paragraph is equal to— 

17 ‘‘(A) for any bond issued during the first 

18 calendar year following the calendar year in 

19 which the determination described in paragraph 

20 (1)(A) or (2)(A) is made, 75 percent, 

21 ‘‘(B) for any bond issued during the sec22 ond calendar year following such determination 

23 year, 50 percent, 


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1 ‘‘(C) for any bond issued during the third 

2 calendar year following such determination 

3 year, 25 percent, and 

4 ‘‘(D) for any bond issued during any cal5 endar year subsequent to the year described in 

6 subparagraph (C), 0 percent. 

7 ‘‘(g) SPECIAL RULES.— 

8 ‘‘(1) INTEREST ON CLEAN ENERGY BONDS IN9 CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME

10 TAX PURPOSES.—For purposes of this title, interest 

11 on any clean energy bond shall be includible in gross 

12 income. 

13 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

14 similar to the rules of subsections (f), (g), (h), and 

15 (i) of section 54A shall apply for purposes of the 

16 credit allowed under subsection (a). 

17 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

18 such regulations and other guidance as may be necessary 

19 or appropriate to carry out this section and section 

20 6433.’’. 

21 (b) CREDIT FOR QUALIFIED CLEAN ENERGY BONDS

22 ALLOWED TO ISSUER.—Subchapter B of chapter 65 of 

23 subtitle F is amended by adding at the end the following 

24 new section: 


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1 ‘‘SEC. 6433. CREDIT FOR QUALIFIED CLEAN ENERGY BONDS 

2 ALLOWED TO ISSUER. 

3 ‘‘(a) IN GENERAL.—The issuer of a qualified clean 

4 energy bond shall be allowed a credit with respect to each 

5 interest payment under such bond which shall be payable 

6 by the Secretary as provided in subsection (b). 

7 ‘‘(b) PAYMENT OF CREDIT.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall pay 

9 (contemporaneously with each interest payment date 

10 under such bond) to the issuer of such bond (or to 

11 any person who makes such interest payments on 

12 behalf of the issuer) 28 percent of the interest pay13 able under such bond on such date. 

14 ‘‘(2) INTEREST PAYMENT DATE.—For purposes 

15 of this subsection, the term ‘interest payment date’ 

16 means each date on which interest is payable by the 

17 issuer under the terms of the bond. 

18 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur19 poses of section 148, the yield on a qualified clean energy 

20 bond shall be reduced by the credit allowed under this sec21 tion. 

22 ‘‘(d) QUALIFIED CLEAN ENERGY BOND.—For pur23 poses of this section, the term ‘qualified clean energy 

24 bond’ means a clean energy bond (as defined in section 

25 54BB(d)) issued as part of an issue if the issuer, in lieu 

26 of any credit allowed under section 54BB(a) with respect 


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1 to such bond, makes an irrevocable election to have this 

2 section apply.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) The table of sections for subpart J of part 

5 IV of subchapter A of chapter 1 is amended by add6 ing at the end the following new item: 

‘‘Sec. 54BB. Clean energy bonds.’’. 

7 (2) The heading of such subpart (and the item 

8 relating to such subpart in the table of subparts for 

9 part IV of subchapter A of chapter 1) are each 

10 amended by striking ‘‘Build America 

11 Bonds’’and inserting ‘‘Build America Bonds 

12 and Clean Energy Bonds’’. 

13 (3) The table of sections for subchapter B of 

14 chapter 65 of subtitle F is amended by adding at 

15 the end the following new item: 

‘‘Sec. 6433. Credit for qualified clean energy bonds allowed to issuer.’’. 

16 (4) Subparagraph (A) of section 6211(b)(4) is 

17 amended by striking ‘‘and 6431’’ and inserting 

18 ‘‘6431, and 6433’’. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to obligations issued after the date 

21 of the enactment of this Act. 


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1 Subtitle E—Treatment of Tar 

2 Sands Under Excise Taxes 

3 SEC. 5051. CLARIFICATION OF TAR SANDS AS CRUDE OIL 

4 FOR EXCISE TAX PURPOSES. 

5 (a) IN GENERAL.—Paragraph (1) of section 4612(a) 

6 is amended to read as follows: 

7 ‘‘(1) CRUDE OIL.—The term ‘crude oil’ includes 

8 crude oil condensates, natural gasoline, synthetic pe9 troleum, any bitumen or bituminous mixture, any oil 

10 derived from a bitumen or bituminous mixture, and 

11 any oil derived from kerogen-bearing sources.’’. 

12 (b) TECHNICAL AMENDMENT.—Paragraph (2) of 

13 section 4612(a) is amended by striking ‘‘from a well lo14 cated’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to oil and petroleum products re17 ceived, entered, used, or exported during calendar quarters 

18 beginning more than 60 days after the date of the enact19 ment of this Act. 


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1 Subtitle F—Closing Big Oil Tax 

2 Loopholes 

3 SEC. 5061. MODIFICATIONS OF FOREIGN TAX CREDIT 

4 RULES APPLICABLE TO MAJOR INTEGRATED 

5 OIL COMPANIES WHICH ARE DUAL CAPACITY 

6 TAXPAYERS. 

7 (a) IN GENERAL.—Section 901 is amended by redes8 ignating subsection (n) as subsection (o) and by inserting 

9 after subsection (m) the following new subsection: 

10 ‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE11 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

12 TAXPAYERS.— 

13 ‘‘(1) GENERAL RULE.—Notwithstanding any 

14 other provision of this chapter, any amount paid or 

15 accrued by a dual capacity taxpayer which is a 

16 major integrated oil company (within the meaning of 

17 section 167(h)(5)) to a foreign country or possession 

18 of the United States for any period shall not be con19 sidered a tax— 

20 ‘‘(A) if, for such period, the foreign coun21 try or possession does not impose a generally 

22 applicable income tax, or 

23 ‘‘(B) to the extent such amount exceeds 

24 the amount (determined in accordance with reg25 ulations) which— 


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1 ‘‘(i) is paid by such dual capacity tax2 payer pursuant to the generally applicable 

3 income tax imposed by the country or pos4 session, or 

5 ‘‘(ii) would be paid if the generally ap6 plicable income tax imposed by the country 

7 or possession were applicable to such dual 

8 capacity taxpayer. 

9 Nothing in this paragraph shall be construed to 

10 imply the proper treatment of any such amount not 

11 in excess of the amount determined under subpara12 graph (B). 

13 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur14 poses of this subsection, the term ‘dual capacity tax15 payer’ means, with respect to any foreign country or 

16 possession of the United States, a person who— 

17 ‘‘(A) is subject to a levy of such country or 

18 possession, and 

19 ‘‘(B) receives (or will receive) directly or 

20 indirectly a specific economic benefit (as deter21 mined in accordance with regulations) from 

22 such country or possession. 

23 ‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 

24 For purposes of this subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘generally 

2 applicable income tax’ means an income tax (or 

3 a series of income taxes) which is generally im4 posed under the laws of a foreign country or 

5 possession on income derived from the conduct 

6 of a trade or business within such country or 

7 possession. 

8 ‘‘(B) EXCEPTIONS.—Such term shall not 

9 include a tax unless it has substantial applica10 tion, by its terms and in practice, to— 

11 ‘‘(i) persons who are not dual capacity 

12 taxpayers, and 

13 ‘‘(ii) persons who are citizens or resi14 dents of the foreign country or posses15 sion.’’. 

16 (b) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—The amendments made by 

18 this section shall apply to taxes paid or accrued in 

19 taxable years beginning after the date of the enact20 ment of this Act. 

21 (2) CONTRARY TREATY OBLIGATIONS

22 UPHELD.—The amendments made by this section 

23 shall not apply to the extent contrary to any treaty 

24 obligation of the United States. 


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1 SEC. 5062. LIMITATION ON SECTION 199 DEDUCTION AT2 TRIBUTABLE TO OIL, NATURAL GAS, OR PRI3 MARY PRODUCTS THEREOF. 

4 (a) DENIAL OF DEDUCTION.—Paragraph (4) of sec5 tion 199(c) is amended by adding at the end the following 

6 new subparagraph: 

7 ‘‘(E) SPECIAL RULE FOR CERTAIN OIL

8 AND GAS INCOME.—In the case of any taxpayer 

9 who is a major integrated oil company (within 

10 the meaning of section 167(h)(5)) for the tax11 able year, the term ‘domestic production gross 

12 receipts’ shall not include gross receipts from 

13 the production, refining, processing, transpor14 tation, or distribution of oil, gas, or any pri15 mary product (within the meaning of subsection 

16 (d)(9)) thereof.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2015. 

20 SEC. 5063. LIMITATION ON DEDUCTION FOR INTANGIBLE 

21 DRILLING AND DEVELOPMENT COSTS; AMOR22 TIZATION OF DISALLOWED AMOUNTS. 

23 (a) IN GENERAL.—Section 263(c) is amended to read 

24 as follows: 


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1 ‘‘(c) INTANGIBLE DRILLING AND DEVELOPMENT

2 COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO3 THERMAL WELLS.— 

4 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

5 (a), and except as provided in subsection (i), regula6 tions shall be prescribed by the Secretary under this 

7 subtitle corresponding to the regulations which 

8 granted the option to deduct as expenses intangible 

9 drilling and development costs in the case of oil and 

10 gas wells and which were recognized and approved 

11 by the Congress in House Concurrent Resolution 50, 

12 Seventy-ninth Congress. Such regulations shall also 

13 grant the option to deduct as expenses intangible 

14 drilling and development costs in the case of wells 

15 drilled for any geothermal deposit (as defined in sec16 tion 613(e)(2)) to the same extent and in the same 

17 manner as such expenses are deductible in the case 

18 of oil and gas wells. This subsection shall not apply 

19 with respect to any costs to which any deduction is 

20 allowed under section 59(e) or 291. 

21 ‘‘(2) EXCLUSION.— 

22 ‘‘(A) IN GENERAL.—This subsection shall 

23 not apply to amounts paid or incurred by a tax24 payer in any taxable year in which such taxVerDate Sep 11 2014 22:20 Sep 29, 2015 Jkt 049200 PO 00000 Frm 00430 Fmt 6652 Sfmt 6201 E:\BILLS\S2089.PCS S2089

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1 payer is a major integrated oil company (within 

2 the meaning of section 167(h)(5)). 

3 ‘‘(B) AMORTIZATION OF AMOUNTS NOT AL4 LOWABLE AS DEDUCTIONS UNDER SUBPARA5 GRAPH (A).—The amount not allowable as a de6 duction for any taxable year by reason of sub7 paragraph (A) shall be allowable as a deduction 

8 ratably over the 60-month period beginning 

9 with the month in which the costs are paid or 

10 incurred. For purposes of section 1254, any de11 duction under this subparagraph shall be treat12 ed as a deduction under this subsection.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to amounts paid or incurred in tax15 able years beginning after December 31, 2015. 

16 SEC. 5064. LIMITATION ON PERCENTAGE DEPLETION AL17 LOWANCE FOR OIL AND GAS WELLS. 

18 (a) IN GENERAL.—Section 613A is amended by add19 ing at the end the following new subsection: 

20 ‘‘(f) APPLICATION WITH RESPECT TO MAJOR INTE21 GRATED OIL COMPANIES.—In the case of any taxable year 

22 in which the taxpayer is a major integrated oil company 

23 (within the meaning of section 167(h)(5)), the allowance 

24 for percentage depletion shall be zero.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2015. 

4 SEC. 5065. LIMITATION ON DEDUCTION FOR TERTIARY 

5 INJECTANTS. 

6 (a) IN GENERAL.—Section 193 is amended by adding 

7 at the end the following new subsection: 

8 ‘‘(d) APPLICATION WITH RESPECT TO MAJOR INTE9 GRATED OIL COMPANIES.— 

10 ‘‘(1) IN GENERAL.—This section shall not apply 

11 to amounts paid or incurred by a taxpayer in any 

12 taxable year in which such taxpayer is a major inte13 grated oil company (within the meaning of section 

14 167(h)(5)). 

15 ‘‘(2) AMORTIZATION OF AMOUNTS NOT ALLOW16 ABLE AS DEDUCTIONS UNDER PARAGRAPH (1).—The 

17 amount not allowable as a deduction for any taxable 

18 year by reason of paragraph (1) shall be allowable 

19 as a deduction ratably over the 60-month period be20 ginning with the month in which the costs are paid 

21 or incurred.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to amounts paid or incurred in tax24 able years beginning after December 31, 2015. 


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1 TITLE VI—CONSERVATION 

2 REAUTHORIZATION 

3 SEC. 6001. NATIONAL PARK SERVICE CENTENNIAL FUND. 

4 (a) IN GENERAL.—Chapter 1049 of title 54, United 

5 States Code, is amended by adding at the end the fol6 lowing: 

7 ‘‘§ 104908. National Park Service Centennial Fund 

8 ‘‘(a) IN GENERAL.—There is established in the 

9 Treasury a fund, to be known as the ‘National Park Serv10 ice Centennial Fund’ (referred to in this section as the 

11 ‘Fund’). 

12 ‘‘(b) DEPOSITS TO FUND.—Notwithstanding any 

13 provision of law providing that the proceeds shall be cred14 ited to miscellaneous receipts of the Treasury, for each 

15 fiscal year, there shall be deposited in the Fund, from rev16 enues due and payable to the United States under section 

17 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 

18 1338), $150,000,000. 

19 ‘‘(c) AVAILABILITY.—Amounts deposited in the Fund 

20 shall be made available for expenditure, without further 

21 appropriation or fiscal year limitation, in accordance with 

22 this section. 

23 ‘‘(d) USE OF FUND.—The Secretary shall use 

24 amounts in the Fund for critical National Park System 

25 maintenance and infrastructure needs and other projects 


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1 and programs that will better enable the National Park 

2 Service to protect park resources and provide improved 

3 visitor services. 

4 ‘‘(e) LAND ACQUISITION PROHIBITION.—Amounts in 

5 the Fund shall not be used for land acquisition.’’. 

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

7 for chapter 1049 of title 54, United States Code, is 

8 amended by inserting after the item relating to section 

9 104907 the following: 

‘‘Sec. 104908. National Park Service Centennial Fund.’’. 

10 SEC. 6002. LAND AND WATER CONSERVATION FUND. 

11 (a) PERMANENT AUTHORIZATION.—Section 200302 

12 of title 54, United States Code, is amended— 

13 (1) in subsection (b), in the matter preceding 

14 paragraph (1), by striking ‘‘During the period end15 ing September 30, 2015, there’’ and inserting 

16 ‘‘There’’; and 

17 (2) in subsection (c)— 

18 (A) in paragraph (1), by striking ‘‘through 

19 September 30, 2015’’; and 

20 (3) by striking paragraph (3). 

21 (b) FULL FUNDING.—Section 200303 of title 54, 

22 United States Code, is amended to read as follows: 

23 ‘‘§ 200303. Availability of funds 

24 ‘‘(a) IN GENERAL.—Amounts deposited in the Fund 

25 under section 200302 on or after the date of enactment 


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1 of the American Energy Innovation Act shall be made 

2 available for expenditure, without further appropriation or 

3 fiscal year limitation, to carry out the purposes of the 

4 Fund (including accounts and programs made available 

5 from the Fund under the Consolidated and Further Con6 tinuing Appropriations Act, 2015 (Public Law 113–235)). 

7 ‘‘(b) ADDITIONAL AMOUNTS.—Amounts made avail8 able under subsection (a) shall be in addition to amounts 

9 made available to the Fund under section 105 of the Gulf 

10 of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

11 note; Public Law 109–432) or otherwise appropriated 

12 from the Fund. 

13 ‘‘(c) ALLOCATION AUTHORITY.— 

14 ‘‘(1) SUBMISSION OF COST ESTIMATES.—The 

15 President shall submit to Congress detailed account, 

16 program, and project allocations to be funded under 

17 subsection (a) as part of the annual budget submis18 sion of the President. 

19 ‘‘(2) ALTERNATE ALLOCATION.— 

20 ‘‘(A) IN GENERAL.—Appropriations Acts 

21 may provide for alternate allocation of amounts 

22 made available under subsection (a), including 

23 allocations by account and program. 

24 ‘‘(B) ALLOCATION BY PRESIDENT.— 


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1 ‘‘(i) NO ALTERNATE ALLOCATIONS.— 

2 If Congress has not enacted legislation es3 tablishing alternate allocations by the date 

4 that is 120 days after the date on which 

5 the applicable fiscal year begins, amounts 

6 made available under subsection (a) shall 

7 be allocated by the President. 

8 ‘‘(ii) INSUFFICIENT ALTERNATE AL9 LOCATION.—If Congress enacts legislation 

10 establishing alternate allocations for 

11 amounts made available under subsection 

12 (a) that are less than the full amount ap13 propriated under that subsection, the dif14 ference between the amount appropriated 

15 and the alternate allocation shall be allo16 cated by the President. 

17 ‘‘(3) ANNUAL REPORT.—The President shall 

18 submit to Congress an annual report that describes 

19 the final allocation by account, program, and project 

20 of amounts made available under subsection (a), in21 cluding a description of the status of obligations and 

22 expenditures.’’. 

23 (c) CLERICAL AMENDMENT.—The table of sections 

24 for title 54 is amended by striking the item relating to 

25 section 200303 and inserting the following: 

‘‘Sec. 200303. Availability of funds.’’. 


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1 (d) PUBLIC ACCESS.—Section 200306 of title 54, 

2 United States Code, is amended by adding at the end the 

3 following: 

4 ‘‘(c) PUBLIC ACCESS.—Not less than 1.5 percent of 

5 the annual authorized funding amount shall be made 

6 available each year for projects that secure recreational 

7 public access to existing Federal public land for hunting, 

8 fishing, or other recreational purposes.’’. 

9 SEC. 6003. HISTORIC PRESERVATION FUND. 

10 (a) AUTHORIZATION.—Section 303102 of title 54, 

11 United States Code, is amended by striking ‘‘of fiscal 

12 years 2012 to 2015’’ and inserting ‘‘fiscal year’’. 

13 (b) USE AND AVAILABILITY.—Section 303103 of title 

14 54, United States Code, is amended by striking the first 

15 sentence and inserting the following: ‘‘Amounts deposited 

16 in the Historic Preservation Fund on or after the date 

17 of enactment of the American Energy Innovation Act shall 

18 only be used to carry out this division and shall be avail19 able for expenditure without further appropriation.’’. 


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Calendar No. 241 

114TH CONGRESS 

1ST SESSION S. 2089 

A BILL 

To provide for investment in clean energy, to empurposes. invest in research and development, and for other ergy infrastructure, to cut pollution and waste, to power and protect consumers, to modernize enSEPTEMBER 29, 2015 

Read the second time and placed on the calendar 


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