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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2089 Placed on Calendar Senate (PCS)]

<DOC>

                                                       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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Energy 
Innovation Act''.
    (b) Table of Contents.--The table of contents for 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.
               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--21\st\ Century Energy Workforce

Sec. 2101. Findings.
Sec. 2102. Definitions.
Sec. 2103. National Center of Excellence for the 21\st\ Century 
                            Workforce.
Sec. 2104. Energy workforce pilot grant program.
                    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

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 multi-State 
                            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

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

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.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Secretary.--Except as otherwise provided in this Act, 
        the term ``Secretary'' means the Secretary of Energy.

              TITLE I--EMPOWERING AND PROTECTING CONSUMERS

           Subtitle A--Access to Consumer Energy Information

SEC. 1001. CONSUMER ACCESS TO ELECTRIC ENERGY INFORMATION.

    (a) In General.--The Secretary shall encourage and support the 
adoption of policies that allow electricity consumers access to their 
own electricity data.
    (b) Eligibility for State Energy Plans.--Section 362(d) of the 
Energy Policy and Conservation Act (42 U.S.C. 6322(d)) is amended--
            (1) in paragraph (16), by striking ``and'' after the 
        semicolon at the end;
            (2) by redesignating paragraph (17) as paragraph (18); and
            (3) by inserting after paragraph (16) the following:
            ``(17) programs--
                    ``(A) to enhance consumer access to and 
                understanding of energy usage and price information, 
                including consumers' own residential and commercial 
                electricity information; and
                    ``(B) to allow for the development and adoption of 
                innovative products and services to assist consumers in 
                managing energy consumption and expenditures; and''.
    (c) Voluntary Guidelines for Electric Consumer Access.--
            (1) Definitions.--In this subsection:
                    (A) Retail electric energy information.--The term 
                ``retail electric energy information'' means--
                            (i) the electric energy consumption of an 
                        electric consumer over a defined time period;
                            (ii) the retail electric energy prices or 
                        rates applied to the electricity usage for the 
                        defined time period described in clause (i) for 
                        the electric consumer;
                            (iii) the estimated cost of service by the 
                        consumer, including (if smart meter usage 
                        information is available) the estimated cost of 
                        service since the last billing cycle of the 
                        consumer; and
                            (iv) in the case of nonresidential electric 
                        meters, any other electrical information that 
                        the meter is programmed to record (such as 
                        demand measured in kilowatts, voltage, 
                        frequency, current, and power factor).
                    (B) Smart meter.--The term ``smart meter'' means 
                the device used by an electric utility that--
                            (i)(I) measures electric energy consumption 
                        by an electric consumer at the home or facility 
                        of the electric consumer in intervals of 1 hour 
                        or less; and
                            (II) is capable of sending electric energy 
                        usage information through a communications 
                        network to the electric utility; or
                            (ii) meets the guidelines issued under 
                        paragraph (2).
            (2) Voluntary guidelines for electric consumer access.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, subject to subparagraph 
                (B), the Secretary shall issue voluntary guidelines 
                that establish model standards for implementation of 
                retail electric energy information access in States.
                    (B) Consultation.--Before issuing the voluntary 
                guidelines, the Secretary shall--
                            (i) consult with--
                                    (I) State and local regulatory 
                                authorities, including the National 
                                Association of Regulatory Utility 
                                Commissioners;
                                    (II) other appropriate Federal 
                                agencies, including the National 
                                Institute of Standards and Technology;
                                    (III) consumer and privacy advocacy 
                                groups;
                                    (IV) utilities;
                                    (V) the National Association of 
                                State Energy Officials; and
                                    (VI) other appropriate entities, 
                                including groups representing 
                                commercial and residential building 
                                owners and groups that represent demand 
                                response and electricity data devices 
                                and services; and
                            (ii) provide notice and opportunity for 
                        comment.
                    (C) State and local regulatory action.--In issuing 
                the voluntary guidelines, the Secretary shall, to the 
                maximum extent practicable, be guided by actions taken 
                by State and local regulatory authorities to ensure 
                electric consumer access to retail electric energy 
                information, including actions taken after 
                consideration of the standard established under section 
                111(d)(17) of the Public Utility Regulatory Policies 
                Act of 1978 (16 U.S.C. 2621(d)(17)).
                    (D) Contents.--
                            (i) In general.--The voluntary guidelines 
                        shall provide guidance on issues necessary to 
                        carry out this subsection, including--
                                    (I) the timeliness and specificity 
                                of retail electric energy information;
                                    (II) appropriate nationally 
                                recognized open standards for data;
                                    (III) the protection of data 
                                security and electric consumer privacy, 
                                including consumer consent 
                                requirements; and
                                    (IV) issues relating to access of 
                                electric energy information for owners 
                                and managers of multitenant commercial 
                                and residential buildings.
                            (ii) Inclusions.--The voluntary guidelines 
                        shall include guidance that--
                                    (I) retail electric energy 
                                information should be made available to 
                                electric consumers (and third-party 
                                designees of the electric consumers) in 
                                the United States--
                                            (aa) in an electronic 
                                        machine readable form, without 
                                        additional charge, in 
                                        conformity with standards 
                                        developed through a voluntary, 
                                        consensus-based, 
                                        multistakeholder process;
                                            (bb) as timely as is 
                                        reasonably practicable;
                                            (cc) at the level of 
                                        specificity that the data is 
                                        transmitted by the meter or as 
                                        is reasonably practicable; and
                                            (dd) in a manner that 
                                        provides adequate protections 
                                        for the security of the 
                                        information and the privacy of 
                                        the electric consumer;
                                    (II) in the case of an electric 
                                consumer that is served by a smart 
                                meter that can also communicate energy 
                                usage information to a device or 
                                network of an electric consumer or a 
                                device or network of a third party 
                                authorized by the consumer, considers 
                                providing to the consumer or third-
                                party designee, at a minimum, access to 
                                usage information (not including price 
                                information) of the consumer directly 
                                from the smart meter;
                                    (III) retail electric energy 
                                information should be provided by the 
                                electric utility of the consumer or 
                                such other entity as may be designated 
                                by the applicable electric retail 
                                regulatory authority;
                                    (IV) retail electric energy 
                                information of the consumer should be 
                                made available to the consumer through 
                                a website or other electronic access 
                                authorized by the electric consumer, 
                                for a period of at least 13 months 
                                after the date on which the usage 
                                occurred;
                                    (V) consumer access to data, 
                                including data provided to owners and 
                                managers of commercial and multifamily 
                                buildings with multiple tenants, should 
                                not interfere with or compromise the 
                                integrity, security, or privacy of the 
                                operations of a utility and the 
                                electric consumer;
                                    (VI) electric energy information 
                                relating to usage information generated 
                                by devices in or on the property of the 
                                consumer that is transmitted to the 
                                electric utility should be made 
                                available to the electric consumer or 
                                the third-party agent designated by the 
                                electric consumer; and
                                    (VII) the same privacy and security 
                                requirements applicable to the 
                                contracting utility under subclause 
                                (I)(dd) should apply to third-party 
                                agents contracting with a utility to 
                                process the customer data of that 
                                utility.
                    (E) Revisions.--The Secretary shall periodically 
                review and, as necessary, revise the voluntary 
                guidelines to reflect changes in technology, privacy 
                needs, and the market for electric energy and services.
    (d) Verification and Implementation.--
            (1) In general.--A State may submit to the Secretary a 
        description of the data sharing policies of the State relating 
        to consumer access to electric energy information for 
        certification by the Secretary that the policies meet the 
        voluntary guidelines issued under subsection (c)(2).
            (2) Assistance.--Subject to the availability of funds under 
        paragraph (3), the Secretary shall make Federal amounts 
        available to any State that has data sharing policies described 
        in paragraph (1) that the Secretary certifies meets the 
        voluntary guidelines issued under subsection (c)(2) to assist 
        the State in implementing section 362(d)(17) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6322(d)(17)).
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        fiscal year 2016, to remain available until expended.

     Subtitle B--Unfair Trade Practices Prohibition in Distributed 
                               Generation

SEC. 1011. INVESTIGATION OF DISTRIBUTED GENERATION.

    (a) Definitions.--In this section:
            (1) Distributed generation.--The term ``distributed 
        generation'' means the generation of electric energy for use at 
        or near the point of generation.
            (2) Electric consumer.--The term ``electric consumer'' 
        means any person to whom electric energy is sold for purposes 
        other than resale.
            (3) Electric utility.--The term ``electric utility'' means 
        any person that sells electric energy.
            (4) Interconnection practice.--The term ``interconnection 
        practice'' means any rate, charge, fee, requirement, or 
        contractual term required by an electric utility--
                    (A) to connect a distributed energy facility owned 
                or operated by an electric consumer to facilities of 
                the electric utility;
                    (B) to purchase from an electric consumer electric 
                energy generated by a distributed generation facility; 
                or
                    (C) to sell electric energy to an electric consumer 
                that owns or operates a distributed generation 
                facility.
    (b) Investigation.--The Federal Trade Commission shall conduct an 
investigation to determine the extent to which interconnection 
practices impede the use of distributed generation.
    (c) Report.--On completion of the investigation under subsection 
(b), the Federal Trade Commission shall--
            (1) identify any interconnection practice that 
        substantially injures electric consumers and violates public 
        policies promoting the development of distributed generation;
            (2) determine whether any interconnection practice 
        identified under paragraph (1) is an unfair act or practice in 
        or affecting commerce in violation of section 5 of the Federal 
        Trade Commission Act (15 U.S.C. 45); and
            (3) report to Congress the findings and conclusions of the 
        investigation (including the determinations under paragraphs 
        (1) and (2)) and any recommendations for additional legislation 
        that the Commission determines is needed to remove unfair 
        impediments to the development of distributed generation.

                   Subtitle C--Enhanced Grid Security

SEC. 1021. CYBERSECURITY THREATS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding at the end the following:

``SEC. 224. CYBERSECURITY THREATS.

    ``(a) Definitions.--In this section:
            ``(1) Bulk-power system.--The term `bulk-power system' has 
        the meaning given the term in section 215.
            ``(2) Cybersecurity threat.--The term `cybersecurity 
        threat' means the imminent danger of an act that severely 
        disrupts, attempts to severely disrupt, or poses a significant 
        risk of severely disrupting the operation of programmable 
        electronic devices or communications networks (including 
        hardware, software, and data) essential to the reliable 
        operation of the bulk-power system.
            ``(3) Electric reliability organization.--The term 
        `Electric Reliability Organization' has the meaning given the 
        term in section 215.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
    ``(b) Emergency Authority of Secretary.--
            ``(1) In general.--If the President notifies the Secretary 
        that the President has made a determination that immediate 
        action is necessary to protect the bulk-power system from a 
        cybersecurity threat, the Secretary may require, by order and 
        with or without notice, any entity that is registered with the 
        Electric Reliability Organization as an owner, operator, or 
        user of the bulk-power system to take such actions as the 
        Secretary determines will best avert or mitigate the 
        cybersecurity threat.
            ``(2) Written explanation.--As soon as practicable after 
        notifying the Secretary under paragraph (1), the President 
        shall--
                    ``(A) provide to the Secretary, in writing, a 
                record of the determination and an explanation of the 
                reasons for the determination; and
                    ``(B) promptly notify, in writing, congressional 
                committees of relevant jurisdiction, including the 
                Committee on Energy and Natural Resources of the Senate 
                and the Committee on Energy and Commerce of the House 
                of Representatives, of the contents of, and 
                justification for, the directive or determination.
            ``(3) Coordination with canada and mexico.--In exercising 
        the authority pursuant to this subsection, the Secretary is 
        encouraged to consult and coordinate with the appropriate 
        officials in Canada and Mexico responsible for the protection 
        of cybersecurity of the interconnected North American 
        electricity grid.
            ``(4) Consultation.--Before exercising authority pursuant 
        to this subsection, to the maximum extent practicable, taking 
        into consideration the nature of an identified cybersecurity 
        threat and the urgency of need for action, the Secretary shall 
        consult regarding implementation of actions that will 
        effectively address the cybersecurity threat with--
                    ``(A) any entities potentially subject to the 
                cybersecurity threat that own, control, or operate 
                bulk-power system facilities;
                    ``(B) the Electric Reliability Organization;
                    ``(C) the Electricity Sub-sector Coordinating 
                Council (as established by the Electric Reliability 
                Organization); and
                    ``(D) officials of other Federal departments and 
                agencies, as appropriate.
            ``(5) Cost recovery.--
                    ``(A) In general.--The Commission shall adopt 
                regulations that permit entities subject to an order 
                under paragraph (1) to seek recovery of prudently 
                incurred costs required to implement actions ordered by 
                the Secretary under this subsection.
                    ``(B) Requirements.--Any rate or charge approved 
                under regulations adopted pursuant to this paragraph--
                            ``(i) shall be just and reasonable; and
                            ``(ii) shall not be unduly discriminatory 
                        or preferential.
    ``(c) Duration of Emergency Orders.--An order issued by the 
Secretary pursuant to subsection (b) shall remain in effect for not 
longer than the 30-day period beginning on the effective date of the 
order, unless, during that 30 day-period, the Secretary--
            ``(1) provides to interested persons an opportunity to 
        submit written data, recommendations, and arguments; and
            ``(2) affirms, amends, or repeals the order, subject to the 
        condition that an amended order shall not exceed a total 
        duration of 90 days.''.

SEC. 1022. ENHANCED GRID SECURITY.

    (a) Definitions.--In this section:
            (1) Electric utility.--The term ``electric utility'' has 
        the meaning given the term in section 3 of the Federal Power 
        Act (16 U.S.C. 796).
            (2) ES-ISAC.--The term ``ES-ISAC'' means the Electricity 
        Sector Information Sharing and Analysis Center.
            (3) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (4) Sector-specific agency.--The term ``Sector-Specific 
        Agency'' has the meaning given the term in the Presidential 
        policy directive entitled ``Critical Infrastructure Security 
        and Resilience'', numbered 21, and dated February 12, 2013.
    (b) Sector-specific Agency for Cybersecurity for the Energy 
Sector.--
            (1) In general.--The Department shall be the lead Sector-
        Specific Agency for cybersecurity for the energy sector.
            (2) Duties.--As the designated Sector-Specific Agency for 
        cybersecurity, the duties of the Department shall include--
                    (A) coordinating with the Department of Homeland 
                Security and other relevant Federal departments and 
                agencies;
                    (B) collaborating with--
                            (i) critical infrastructure owners and 
                        operators; and
                            (ii) as appropriate--
                                    (I) independent regulatory 
                                agencies; and
                                    (II) State, local, tribal and 
                                territorial entities;
                    (C) serving as a day-to-day Federal interface for 
                the dynamic prioritization and coordination of sector-
                specific activities;
                    (D) carrying out incident management 
                responsibilities consistent with applicable law 
                (including regulations) and other appropriate policies 
                or directives;
                    (E) providing, supporting, or facilitating 
                technical assistance and consultations for the energy 
                sector to identify vulnerabilities and help mitigate 
                incidents, as appropriate; and
                    (F) supporting the reporting requirements of the 
                Department of Homeland Security under applicable law by 
                providing, on an annual basis, sector-specific critical 
                infrastructure information.
    (c) Cybersecurity for the Energy Sector Research, Development, and 
Demonstration Program.--
            (1) In general.--The Secretary, in consultation with 
        appropriate Federal agencies, the energy sector, the States, 
        and other stakeholders, shall carry out a program--
                    (A) to develop advanced cybersecurity applications 
                and technologies for the energy sector--
                            (i) to identify and mitigate 
                        vulnerabilities, including--
                                    (I) dependencies on other critical 
                                infrastructure; and
                                    (II) impacts from weather and fuel 
                                supply; and
                            (ii) to advance the security of field 
                        devices, third-party control systems, and 
                        applications, including--
                                    (I) systems for generation, 
                                transmission, distribution, end use, 
                                and market functions;
                                    (II) specific electric grid 
                                elements including advanced metering, 
                                demand response, distributed 
                                generation, and electricity storage;
                                    (III) forensic analysis of infected 
                                systems; and
                                    (IV) secure communications;
                    (B) to leverage electric grid architecture as a 
                means to assess risks to the energy sector, including 
                by implementing an all-hazards approach to 
                communications infrastructure, control systems 
                architecture, and power systems architecture;
                    (C) to perform pilot demonstration projects with 
                the energy sector to gain experience with new 
                technologies; and
                    (D) to develop workforce development curricula for 
                energy sector-related cybersecurity.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $65,000,000 for 
        each of fiscal years 2017 through 2025.
    (d) Energy Sector Component Testing for Cyberresilience Program.--
            (1) In general.--The Secretary shall carry out a program--
                    (A) to establish a cybertesting and mitigation 
                program to identify vulnerabilities of energy sector 
                supply chain products to known threats;
                    (B) to oversee third-party cybertesting; and
                    (C) to develop procurement guidelines for energy 
                sector supply chain components.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $15,000,000 for 
        each of fiscal years 2017 through 2025.
    (e) Energy Sector Operational Support for Cyberresilience 
Program.--
            (1) In general.--The Secretary may carry out a program--
                    (A) to enhance and periodically test--
                            (i) the emergency response capabilities of 
                        the Department; and
                            (ii) the coordination of the Department 
                        with other agencies, the National Laboratories, 
                        and private industry;
                    (B) to expand cooperation of the Department with 
                the public sector and intelligence communities for 
                energy sector-related threat collection and analysis;
                    (C) to enhance the tools of the Department and ES-
                ISAC for monitoring the status of the energy sector;
                    (D) to expand industry participation in ES-ISAC; 
                and
                    (E) to provide technical assistance to small 
                electric utilities for purposes of assessing 
                cybermaturity level.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2017 through 2025.
    (f) Modeling and Assessing Energy Infrastructure Risk.--
            (1) In general.--The Secretary shall develop an advanced 
        energy security program to secure energy networks and 
        applications, including electric, natural gas, and oil 
        exploration, transmission, and delivery.
            (2) Security and resiliency objective.--The objective of 
        the program developed under paragraph (1) is to increase the 
        functional preservation of the electric grid operations or 
        natural gas and oil operations in the face of natural and 
        human-made threats and hazards, including electric magnetic 
        pulse and geomagnetic disturbances.
            (3) Eligible activities.--In carrying out the program 
        developed under paragraph (1), the Secretary may--
                    (A) develop capabilities to identify 
                vulnerabilities and critical components that pose major 
                risks to grid security if destroyed or impaired;
                    (B) provide modeling at the national level to 
                predict impacts from natural or human-made events;
                    (C) develop a maturity model for physical security 
                and cybersecurity;
                    (D) conduct exercises and assessments to identify 
                and mitigate vulnerabilities to the electric grid, 
                including providing mitigation recommendations;
                    (E) conduct research hardening solutions for 
                critical components of the electric grid;
                    (F) conduct research mitigation and recovery 
                solutions for critical components of the electric grid; 
                and
                    (G) provide technical assistance to States and 
                other entities for standards and risk analysis.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2017 through 2025.
    (g) Leveraging Existing Programs.--The programs established under 
this section shall be carried out consistent with--
            (1) the report of the Department entitled ``Roadmap to 
        Achieve Energy Delivery Systems Cybersecurity'' and dated 2011;
            (2) existing programs of the Department; and
            (3) any associated strategic framework that links together 
        academic and National Laboratory researchers, electric 
        utilities, manufacturers, and any other relevant private 
        industry organizations, including the Electricity Sub-sector 
        Coordinating Council.
    (h) Study.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Federal Energy Regulatory Commission and the North American 
        Electric Reliability Corporation, shall conduct a study to 
        explore alternative management structures and funding 
        mechanisms to expand industry membership and participation in 
        ES-ISAC.
            (2) Report.--The Secretary shall submit to the appropriate 
        committees of Congress a report describing the results of the 
        study conducted under paragraph (1).

                   Subtitle D--Capacity Markets Study

SEC. 1031. GAO CAPACITY MARKET IMPACT STUDY.

    Not later than 180 days after the date of enactment of this Act, 
the Comptroller General of the United States shall--
            (1) conduct a study of the effects of forward capacity 
        auctions or other capacity mechanisms that have been 
        established by Independent System Operators or Regional 
        Transmission Organizations on--
                    (A) consumer prices for electricity;
                    (B) the installation of new electrical generation 
                systems;
                    (C) the preservation of existing electrical 
                generation systems; and
                    (D) competition in energy markets, including the 
                potential for the use of undue market power or 
                manipulation in the auctions; and
            (2) submit to the appropriate committees of Congress a 
        report describing the results of the study conducted under 
        paragraph (1), including an assessment of whether the auctions 
        or capacity mechanisms are producing rates that are just and 
        reasonable.

           Subtitle E--Severe Coal Supply Emergency Response

SEC. 1041. SEVERE COAL SUPPLY EMERGENCY RESPONSE.

    (a) Definitions.--In this section:
            (1) Board.--The term ``Board'' means the Surface 
        Transportation Board.
            (2) Electric reliability organization.--The term ``Electric 
        Reliability Organization'' has the meaning given the term in 
        section 215 of the Federal Power Act (16 U.S.C. 824o).
            (3) Form oe-417.--The term ``Form OE-417'' means the form 
        entitled ``Electric Emergency Incident and Disturbance Report'' 
        (or a successor form) and filed in accordance with the Federal 
        Energy Administration Act of 1974 (15 U.S.C. 761 et seq.).
            (4) Severe coal supply emergency.--The term ``severe coal 
        supply emergency'' means a coal supply deficiency reported to 
        the Department on Form OE-417.
    (b) Coordination and Report.--
            (1) Reporting duty.--On the filing of a Form OE-417 that 
        reports a severe coal supply emergency, the Secretary shall 
        notify the Board and the Federal Energy Regulatory Commission.
            (2) Consultation and coordination.--The Secretary, the 
        Board, the Federal Energy Regulatory Commission, and, as 
        appropriate, the Electric Reliability Organization, shall, to 
        the maximum extent practicable, consult and coordinate with 
        each other to alleviate and prevent recurrences of a severe 
        coal supply emergency.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Board, the Commission, and, as appropriate, the Electric 
        Reliability Organization, shall submit a report to Congress 
        that analyzes and includes recommendations with respect to--
                    (A) the effects of rail congestion on the flow of 
                energy commodities such as coal;
                    (B) the effects of rail congestion on the 
                reliability of the bulk-power system (as that term is 
                defined in section 215 of the Federal Power Act (16 
                U.S.C. 824o));
                    (C) the advisability of creating a minimum coal 
                stockpile requirement; and
                    (D) other appropriate measures that could prevent 
                the development or recurrence of severe coal supply 
                emergencies.

                       Subtitle F--Energy Markets

SEC. 1051. ENHANCED INFORMATION ON CRITICAL ENERGY SUPPLIES.

    (a) In General.--Section 205 of the Department of Energy 
Organization Act (42 U.S.C. 7135) is amended by adding at the end the 
following:
    ``(n) Collection of Information on Critical Energy Supplies.--
            ``(1) In general.--To ensure transparency of information 
        relating to energy infrastructure and product ownership in the 
        United States and improve the ability to evaluate the energy 
        security of the United States, the Administrator, in 
        consultation with other Federal agencies (as necessary), 
        shall--
                    ``(A) not later than 120 days after the date of 
                enactment of this subsection, develop and provide 
                notice of a plan to collect, in cooperation with the 
                Commodity Futures Trade Commission, information 
                identifying all oil inventories, and other physical oil 
                assets (including all petroleum-based products and the 
                storage of such products in off-shore tankers), that 
                are owned by the 50 largest traders of oil contracts 
                (including derivative contracts), as determined by the 
                Commodity Futures Trade Commission; and
                    ``(B) not later than 90 days after the date on 
                which notice is provided under subparagraph (A), 
                implement the plan described in that subparagraph.
            ``(2) Information.--The plan required under paragraph (1) 
        shall include a description of the plan of the Administrator 
        for collecting company-specific data, including--
                    ``(A) volumes of product under ownership; and
                    ``(B) storage and transportation capacity 
                (including owned and leased capacity).
            ``(3) Protection of proprietary information.--Section 12(f) 
        of the Federal Energy Administration Act of 1974 (15 U.S.C. 
        771(f)) shall apply to information collected under this 
        subsection.
    ``(o) Collection of Information on Storage Capacity for Oil and 
Natural Gas.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of this subsection, the Administrator of the Energy 
        Information Administration shall collect information 
        quantifying the commercial storage capacity for oil and natural 
        gas in the United States.
            ``(2) Updates.--The Administrator shall update annually the 
        information required under paragraph (1).
            ``(3) Protection of proprietary information.--Section 12(f) 
        of the Federal Energy Administration Act of 1974 (15 U.S.C. 
        771(f)) shall apply to information collected under this 
        subsection.
    ``(p) Financial Market Analysis Office.--
            ``(1) Establishment.--There shall be within the Energy 
        Information Administration a Financial Market Analysis Office, 
        headed by a director, who shall report directly to the 
        Administrator of the Energy Information Administration.
            ``(2) Duties.--The Office shall--
                    ``(A) be responsible for analysis of the financial 
                aspects of energy markets;
                    ``(B) review the reports required by section 
                1053(c) of the American Energy Innovation Act, in 
                advance of the submission of the reports to Congress; 
                and
                    ``(C) not later than 1 year after the date of 
                enactment of this subsection--
                            ``(i) make recommendations to the 
                        Administrator of the Energy Information 
                        Administration that identify and quantify any 
                        additional resources that are required to 
                        improve the ability of the Energy Information 
                        Administration to more fully integrate 
                        financial market information into the analyses 
                        and forecasts of the Energy Information 
                        Administration, including the role of energy 
                        futures contracts, energy commodity swaps, and 
                        derivatives in price formation for oil;
                            ``(ii) conduct a review of implications of 
                        policy changes and changes in how crude oil and 
                        refined petroleum products are transported with 
                        respect to price formation of crude oil and 
                        refined petroleum products; and
                            ``(iii) notify the Committee on Energy and 
                        Natural Resources, and the Committee on 
                        Appropriations, of the Senate and the Committee 
                        on Energy and Commerce, and the Committee on 
                        Appropriations, of the House of Representatives 
                        of the recommendations described in clause (i).
            ``(3) Analyses.--The Administrator of the Energy 
        Information Administration shall take analyses by the Office 
        into account in conducting analyses and forecasting of energy 
        prices.''.
    (b) Conforming Amendment.--Section 645 of the Department of Energy 
Organization Act (42 U.S.C. 7255) is amended by inserting ``(15 U.S.C. 
3301 et seq.) and the Natural Gas Act (15 U.S.C. 717 et seq.)'' after 
``Natural Gas Policy Act of 1978''.

SEC. 1052. WORKING GROUP ON ENERGY MARKETS.

    (a) Establishment.--There is established a Working Group on Energy 
Markets (referred to in this subtitle as the ``Working Group'').
    (b) Composition.--The Working Group shall be composed of--
            (1) the Secretary;
            (2) the Secretary of the Treasury;
            (3) the Chairman of the Federal Energy Regulatory 
        Commission;
            (4) the Chairman of Federal Trade Commission;
            (5) the Chairman of the Securities and Exchange Commission;
            (6) the Chairman of the Commodity Futures Trading 
        Commission; and
            (7) the Administrator of the Energy Information 
        Administration.
    (c) Chairperson.--The Secretary shall serve as the Chairperson of 
the Working Group.
    (d) Compensation.--A member of the Working Group shall serve 
without additional compensation for the work of the member of the 
Working Group.
    (e) Purpose and Function.--The Working Group shall--
            (1) investigate the effect of increased financial 
        investment in energy commodities on energy prices and the 
        energy security of the United States;
            (2) recommend to the President and Congress laws (including 
        regulations) that may be needed to prevent excessive 
        speculation in energy commodity markets in order to prevent or 
        minimize the adverse impact of excessive speculation on energy 
        prices on consumers and the economy of the United States; and
            (3) review energy security implications of developments in 
        international energy markets.
    (f) Administration.--The Secretary shall provide the Working Group 
with such administrative and support services as may be necessary for 
the performance of the functions of the Working Group.
    (g) Cooperation of Other Agencies.--The heads of Executive 
departments, agencies, and independent instrumentalities shall, to the 
extent permitted by law, provide the Working Group with such 
information as the Working Group requires to carry out this section.
    (h) Consultation.--The Working Group shall consult, as appropriate, 
with representatives of the various exchanges, clearinghouses, self-
regulatory bodies, other major market participants, consumers, and the 
general public.

SEC. 1053. STUDY OF REGULATORY FRAMEWORK FOR ENERGY MARKETS.

    (a) Study.--The Working Group shall conduct a study--
            (1) to identify the factors that affect the pricing of 
        crude oil and refined petroleum products, including an 
        examination of the effects of market speculation on prices; and
            (2) to review and assess--
                    (A) existing statutory authorities relating to the 
                oversight and regulation of markets critical to the 
                energy security of the United States; and
                    (B) the need for additional statutory authority for 
                the Federal Government to effectively oversee and 
                regulate markets critical to the energy security of the 
                United States.
    (b) Elements of Study.--The study shall include--
            (1) an examination of price formation of crude oil and 
        refined petroleum products;
            (2) an examination of relevant international regulatory 
        regimes; and
            (3) an examination of the degree to which changes in energy 
        market transparency, liquidity, and structure have influenced 
        or driven abuse, manipulation, excessive speculation, or 
        inefficient price formation.
    (c) Report and Recommendations.--The Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce of the House of Representatives 
quarterly progress reports during the conduct of the study under this 
section, and a final report not later than 1 year after the date of 
enactment of this Act, that--
            (1) describes the results of the study; and
            (2) provides options and the recommendations of the Working 
        Group for appropriate Federal coordination of oversight and 
        regulatory actions to ensure transparency of crude oil and 
        refined petroleum product pricing and the elimination of 
        excessive speculation, including recommendations on data 
        collection and analysis to be carried out by the Financial 
        Market Analysis Office established by section 205(p) of the 
        Department of Energy Organization Act (42 U.S.C. 7135(p)).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                        Subtitle G--Transmission

SEC. 1061. REPORT BY TRANSMISSION ORGANIZATIONS ON DISTRIBUTED ENERGY 
              RESOURCES AND MICROGRID SYSTEMS.

    (a) Definitions.--In this section:
            (1) Distributed energy resource.--The term ``distributed 
        energy resource'' means an electricity supply resource that, as 
        permitted by State law--
                    (A)(i) is interconnected to the electric system 
                operated by a transmission organization at or below 
                69kV; and
                    (ii) is subject to dispatch by the transmission 
                organization; and
                    (B)(i) generates electricity using any primary 
                energy source, including solar energy and other 
                renewable resources; or
                    (ii) stores energy and is capable of supplying 
                electricity to the electric system operated by the 
                transmission organization from the storage reservoir.
            (2) Electric generating capacity resource.--The term 
        ``electric generating capacity resource'' means an electric 
        generating resource, as measured by the maximum load-carrying 
        ability of the resource, exclusive of station use and planned, 
        unplanned, or other outage or derating, that is subject to 
        dispatch by a transmission organization to meet the resource 
        adequacy needs of the systems operated by the transmission 
        organization.
            (3) Microgrid system.--The term ``microgrid system'' means 
        an electrically distinct system under common control that--
                    (A) serves an electric load at or below 69kV from a 
                distributed energy resource or electric generating 
                capacity resource; and
                    (B) is subject to dispatch by a transmission 
                organization.
            (4) Transmission organization.--The term ``transmission 
        organization'' has the meaning given the term in section 3 of 
        the Federal Power Act (16 U.S.C. 796).
    (b) Report.--
            (1) Notice.--Not later than 14 days after the date of 
        enactment of this section, the Commission shall submit to each 
        transmission organization notice that the transmission 
        organization is required to file with the Commission a report 
        in accordance with paragraph (2).
            (2) Report.--Not later than 180 days after the date on 
        which a transmission organization receives a notice under 
        paragraph (1), the transmission organization shall submit to 
        the Commission a report that--
                    (A)(i) identifies distributed energy resources and 
                micro-grid systems that are subject to dispatch by the 
                transmission organization as of the date of the report; 
                and
                    (ii) describes the fuel sources and operational 
                characteristics of such distributed energy resources 
                and micro-grid systems, including, to the maximum 
                extent practicable, a discussion of the benefits and 
                costs associated with the distributed energy resources 
                and microgrid systems identified under clause (i);
                    (B) evaluates, with due regard for operational and 
                economic benefits and costs, the potential for 
                distributed energy resources and microgrid systems to 
                be deployed to the transmission organization over the 
                short- and long-term periods in the planning cycle of 
                the transmission organization; and
                    (C) identifies--
                            (i) over the short- and long-term periods 
                        in the planning cycle of the transmission 
                        organization, barriers to the deployment to the 
                        transmission organization of distributed energy 
                        resources and microgrid systems; and
                            (ii) potential changes to the operational 
                        requirements for, or charges associated with, 
                        the interconnection of distributed energy 
                        resources and microgrid systems to the 
                        transmission organization that would reduce the 
                        barriers identified under clause (i).

SEC. 1062. NET METERING STUDY GUIDANCE.

    Title XVIII of Energy Policy Act of 2005 (Public Law 109-58; 119 
Stat. 1122) is amended by adding at the end the following:

``SEC. 1841. NET ENERGY METERING STUDY.

    ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall--
            ``(1) issue guidance on criteria required to be included in 
        studies of net metering conducted by the Department; and
            ``(2) undertake a study of net energy metering.
    ``(b) Requirements and Contents.--The model guidance issued under 
subsection (a) shall clarify without prejudice to other study criteria 
that any study of net energy metering, including the study conducted by 
the Department under subsection (a) shall--
            ``(1) be publicly available; and
            ``(2) assess benefits and costs of net energy metering, 
        including--
                    ``(A) load data, including hourly profiles;
                    ``(B) distributed generation production data;
                    ``(C) best available technology, including inverter 
                capability; and
                    ``(D) benefits and costs of distributed energy 
                deployment, including--
                            ``(i) environmental benefits;
                            ``(ii) changes in electric system 
                        reliability;
                            ``(iii) changes in peak power requirements;
                            ``(iv) provision of ancillary services, 
                        including reactive power;
                            ``(v) changes in power quality;
                            ``(vi) changes in land-use effects;
                            ``(vii) changes in right-of-way acquisition 
                        costs;
                            ``(viii) changes in vulnerability to 
                        terrorism; and
                            ``(ix) changes in infrastructure 
                        resilience.''.

                  TITLE II--MODERNIZING INFRASTRUCTURE

                    Subtitle A--QER Recommendations

SEC. 2001. NATURAL GAS DISTRIBUTION SYSTEM IMPROVEMENT PROGRAM.

    Part 4 of title II of the National Energy Conservation Policy Act 
(42 U.S.C. 8231 et seq.) is amended by adding at the end the following:

``SEC. 256. ESTABLISHMENT OF A NATURAL GAS DISTRIBUTION SYSTEM 
              IMPROVEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Leak-prone distribution pipeline.--The term `leak-
        prone distribution pipeline' means a natural gas distribution 
        system pipeline constructed of leak prone materials, such as 
        cast iron or bare steel.
            ``(2) Low-income household.--The term `low-income 
        household' means a household--
                    ``(A) the combined income of which is equal to or 
                less than 200 percent of the poverty level; or
                    ``(B) determined to be eligible by the State in 
                which the household is located under the low-income 
                home energy assistance program established under the 
                Low-Income Home Energy Assistance Act of 1981 (42 
                U.S.C. 8621 et seq.) using an eligibility standard 
                based on--
                            ``(i) 150 percent of the poverty level; or
                            ``(ii) 60 percent of the median income in 
                        the State.
    ``(b) Establishment.--The Secretary shall make grants to eligible 
entities on a competitive basis to accelerate or expand utility 
programs that improve the safety and environmental performance of 
natural gas distribution systems.
    ``(c) Eligibility.--
            ``(1) In general.--Except as provided in paragraph (2), to 
        be eligible to receive a grant under subsection (b), an entity 
        shall be--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico;
                    ``(D) any other territory or possession of the 
                United States; or
                    ``(E) a tribal organization (as defined in section 
                4 of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)).
            ``(2) Other entities.--If an entity described in 
        subparagraphs (A) through (D) of paragraph (1) does not apply 
        for a grant under subsection (b), units of general purpose 
        local government, community action agencies, and other 
        nonprofit agencies located in that entity shall be eligible to 
        apply for a grant.
    ``(d) Use of Funds.--An eligible entity receiving a grant under 
subsection (b)--
            ``(1) shall only use grant amounts for new or expanded 
        programs that are approved by a public utility commission (or 
        an equivalent entity) after April 21, 2015; and
            ``(2) may use grant amounts--
                    ``(A) to accelerate the rate of replacement and 
                repair of leak-prone distribution pipelines; and
                    ``(B) for directed inspection and maintenance 
                programs.
    ``(e) Low-income Assistance.--As a condition of receiving a grant 
under subsection (b), an eligible entity shall ensure that the grant 
amounts are used to offset the cost to low-income households of 
incremental increases in household bills associated with system 
upgrades using grant amounts.
    ``(f) Application Process.--An eligible entity desiring a grant 
under subsection (b) shall submit to the Secretary an application at 
such time, in such manner, and containing such information as the 
Secretary may require.
    ``(g) Selection.--In selecting grant recipients, the Secretary 
shall--
            ``(1) prioritize eligible entities that emphasize safety 
        over other program benefits; and
            ``(2) with respect to the application proposal of an 
        eligible entity, consider and estimate the net benefits of the 
        proposed--
                    ``(A) magnitude of methane emission reductions;
                    ``(B) use of innovative technology and policy 
                approaches;
                    ``(C) number of low-income households estimated to 
                benefit from the proposed program; and
                    ``(D) demonstrated coordination with a broad range 
                of stakeholders, including the public utility 
                commission (or equivalent entity), consumer advocates, 
                and utilities.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $3,500,000,000 for the period of 
fiscal years 2016 through 2019.''.

SEC. 2002. STRATEGY FOR MANAGING THE RISKS ASSOCIATED WITH THE LOSS OR 
              DISRUPTION OF POWER FROM LARGE POWER TRANSFORMERS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding at the end the following:

``SEC. 224. STRATEGY FOR MANAGING THE RISKS ASSOCIATED WITH THE LOSS OR 
              DISRUPTION OF POWER FROM LARGE POWER TRANSFORMERS.

    ``(a) Establishment.--The Secretary of Energy (referred to in this 
section as the `Secretary'), in coordination with the Secretary of 
Homeland Security and the heads of other Federal agencies, States, and 
representatives of the electric industry, shall develop a strategy for 
identifying and managing the risks associated with the loss of power 
from large power transformers.
    ``(b) Reserve.--In developing the strategy under subsection (a), 
the Secretary shall evaluate the establishment of 1 or more transformer 
reserves as an approach to mitigating the risks described in subsection 
(a).
    ``(c) Report.--Not later than 1 year after the date of enactment of 
this section, the Secretary shall submit to the appropriate committees 
of Congress a report that--
            ``(1) describes the findings, conclusions, and 
        recommendations of the Secretary with respect to the strategy 
        required to be developed under subsection (a); and
            ``(2) includes an implementation plan for that strategy.
    ``(d) Strategic Transformer Reserve.--On submission of the report 
under subsection (c), the Secretary may establish a Strategic 
Transformer Reserve.''.

SEC. 2003. CONSOLIDATION OF RELEASE AUTHORITIES.

    (a) Northeast Home Heating Oil Reserve.--The Energy Policy and 
Conservation Act is amended by striking section 183 (42 U.S.C. 6250b) 
and inserting the following:

``SEC. 183. CONDITIONS FOR RELEASE.

    ``The Secretary may sell products from the Reserve only after the 
President makes a finding of a severe energy supply interruption in 
accordance with section 161(d), except that references to `petroleum 
products' and the `Strategic Petroleum Reserve' in that section shall 
be deemed to be references to `petroleum distillate' and the `Northeast 
Home Heating Oil Reserve', respectively.''.
    (b) Northeast Gasoline Supply Reserve.--The Secretary may sell 
products from the Northeast Gasoline Supply Reserve only after making a 
finding of a severe energy supply interruption in accordance with 
section 161(d) of the Energy Policy and Conservation Act (42 U.S.C. 
6241(d)), except that references to ``petroleum products'' and the 
``Strategic Petroleum Reserve'' in that section shall be deemed to be 
references to ``gasoline'' and the ``Northeast Gasoline Supply 
Reserve'', respectively.

SEC. 2004. MODERNIZATION OF STRATEGIC PETROLEUM RESERVE RELEASE 
              AUTHORITIES.

    Section 161(d)(2) of the Energy Policy and Conservation Act (42 
U.S.C. 6241(d)(2)) is amended--
            (1) in subparagraph (A), by striking ``(A) an emergency'' 
        and inserting the following:
                    ``(A)(i) an emergency'';
            (2) by redesignating subparagraphs (B) and (C) as clauses 
        (ii) and (iii), respectively;
            (3) in clause (ii) (as so redesignated), by striking ``has 
        resulted'' and inserting ``will likely result'';
            (4) in clause (iii) (as so redesignated), by striking the 
        period at the end and inserting ``; or''; and
            (5) by adding at the end the following:
                    ``(B) an interruption in the global oil supply 
                exists that is likely to cause a severe increase in the 
                price of domestic petroleum products, regardless of 
                whether the interruption results in a loss of oil 
                imports to the United States.''.

SEC. 2005. OPTIMIZATION OF EMERGENCY RESPONSE CAPABILITY OF STRATEGIC 
              PETROLEUM RESERVE.

    (a) In General.--Part B of title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the 
end the following:

``SEC. 170. OPTIMIZATION OF EMERGENCY RESPONSE CAPABILITY OF STRATEGIC 
              PETROLEUM RESERVE.

    ``(a) Analysis.--The Secretary shall carry out an analysis, 
including detailed engineering studies, of the appropriate size and 
configuration of the Strategic Petroleum Reserve.
    ``(b) Funding for SPR Infrastructure and Distribution Systems.--
After performing the analysis under subsection (a) and subject to the 
availability of funds, the Secretary may provide funds for Strategic 
Petroleum Reserve infrastructure and distribution systems in order to 
optimize the ability of the Strategic Petroleum Reserve to protect the 
economy of the United States in an emergency supply situation.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for the period of 
fiscal years 2016 through 2019.''.
    (b) Conforming Amendment.--The table of contents for the Energy 
Policy and Conservation Act is amended by inserting after the item 
relating to section 169 the following:

``Sec. 170. Optimization of emergency response capability of Strategic 
                            Petroleum Reserve.''.

               Subtitle B--Grid Modernization and Storage

SEC. 2011. DEFINITION OF SECRETARY.

    In this subtitle (other than section 2012), the term ``Secretary'' 
means the Secretary, acting through the Assistant Secretary of the 
Office of Electricity Delivery and Energy Reliability.

SEC. 2012. GRID STORAGE PROGRAM.

    (a) In General.--The Secretary shall conduct a program of research, 
development, and demonstration of electric grid energy storage that 
addresses the principal challenges identified in the 2013 Department of 
Energy Strategic Plan for Grid Energy Storage.
    (b) Areas of Focus.--The program under this section shall focus 
on--
            (1) materials and electrochemical systems research;
            (2) power conversion technologies research;
            (3) developing--
                    (A) empirical and science-based industry standards 
                to compare the storage capacity, cycle length and 
                capabilities, and reliability of different types of 
                electricity storage; and
                    (B) validation and testing techniques;
            (4) other fundamental and applied research critical to 
        widespread deployment of electricity storage;
            (5) device development that builds on results from research 
        described in paragraphs (1), (2), and (4), including 
        combinations of power electronics, advanced optimizing 
        controls, and energy storage as a general purpose element of 
        the electric grid;
            (6) grid-scale testing and analysis of storage devices, 
        including test-beds and field trials;
            (7) cost-benefit analyses that inform capital expenditure 
        planning for regulators and owners and operators of components 
        of the electric grid;
            (8) electricity storage device safety and reliability, 
        including potential failure modes, mitigation measures, and 
        operational guidelines;
            (9) standards for storage device performance, control 
        interface, grid interconnection, and interoperability; and
            (10) maintaining a public database of energy storage 
        projects, policies, codes, standards, and regulations.
    (c) Assistance to States.--The Secretary may provide technical and 
financial assistance to States, Indian tribes, or units of local 
government to participate in or use research, development, or 
deployment of technology developed under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of fiscal years 2017 through 2026.

SEC. 2013. TECHNOLOGY DEMONSTRATION AND THE DISTRIBUTION SYSTEM.

    (a) In General.--The Secretary shall establish a grant program to 
carry out eligible projects relating to the modernization of the 
electric grid, including the application of technologies to improve 
observability, advanced controls, and prediction of system performance 
on the distribution system.
    (b) Eligible Projects.--To be eligible for a grant under subsection 
(a), a project shall--
            (1) be designed to improve the performance and efficiency 
        of the future electric grid, while ensuring the continued 
        provision of safe, secure, reliable, and affordable power; and
            (2) demonstrate--
                    (A) secure integration and management of 2 or more 
                energy resources, including distributed energy 
                generation, combined heat and power, microgrids, energy 
                storage, electric vehicles, energy efficiency, demand 
                response, and intelligent loads; and
                    (B) secure integration and interoperability of 
                communications and information technologies.
    (c) Participation.--Projects conducted under subsection (a) shall 
include the participation of a partnership consisting of 2 or more 
entities that--
            (1) may include--
                    (A) any institution of higher education;
                    (B) a National Laboratory;
                    (C) a representative of a State or local 
                government;
                    (D) a representative of an Indian tribe; or
                    (E) a Federal power marketing administration; and
            (2) shall include not fewer than 1 of any of--
                    (A) an investor-owned electric utility;
                    (B) a publicly owned utility;
                    (C) a technology provider;
                    (D) a rural electric cooperative;
                    (E) a regional transmission organization; or
                    (F) an independent system operator.
    (d) Select Areas of Focus.--
            (1) In general.--The Secretary shall ensure that not fewer 
        than 1 project conducted under subsection (a) is--
                    (A) a transactive energy project that implements a 
                system of economic or control mechanisms that optimizes 
                the dynamic balance of supply and demand across the 
                electrical infrastructure, using economic value as a 
                key operational parameter; and
                    (B) a valuation innovation project that evaluates 
                or implements markets, rates, and other ways of 
                appropriately valuing the grid services provided by 
                demand response, energy efficiency, electric vehicles, 
                storage, distributed generation, and other generation 
                technologies to ensure--
                            (i) appropriate cost-recovery;
                            (ii) reliability of the distribution grid; 
                        and
                            (iii) increased penetration of demand 
                        response, energy efficiency, electric vehicles, 
                        storage, distributed generation, and other 
                        generation technologies.
    (e) Cybersecurity Plan.--Each project conducted under subsection 
(a) shall include the development of a cybersecurity plan approved by 
the Secretary.
    (f) Privacy Best Practices.--In carrying out this section, the 
Secretary shall identify best practices for the implementation of the 5 
core concepts of the Department relating to the collection, use, 
disclosure, and retention of information, as described in the Voluntary 
Code of Conduct of the Department.
    (g) Working Groups.--
            (1) In general.--The Secretary shall establish 1 or more 
        working groups, to be composed of representatives of projects 
        conducted under subsection (a), that shall--
                    (A) meet periodically to discuss implementation of 
                the projects, including challenges and potential 
                solutions held in common by the projects; and
                    (B) submit to the Secretary such information 
                resulting from the meetings as the Secretary may 
                require.
            (2) Reports.--The Secretary shall periodically publish 
        reports and other appropriate materials based on the 
        information provided by the working groups under paragraph 
        (1)(B).

SEC. 2014. MICROGRID SYSTEMS FOR ISOLATED AND RESILIENT COMMUNITIES.

    (a) Definitions.--In this section:
            (1) Hybrid microgrid system.--The term ``hybrid microgrid 
        system'' means a stand-alone electrical system that--
                    (A) is comprised of conventional generation and at 
                least 1 alternative energy resource; and
                    (B) may use grid-scale energy storage.
            (2) Isolated community.--The term ``isolated community'' 
        means a community that is powered by a stand-alone electric 
        generation and distribution system without the economic and 
        reliability benefits of connection to a regional electric grid.
            (3) Microgrid system.--The term ``microgrid system'' means 
        a standalone electrical system that uses grid-scale energy 
        storage.
            (4) Strategy.--The term ``strategy'' means the strategy 
        developed under subsection (b)(2)(B).
    (b) Program.--
            (1) Establishment.--The Secretary shall establish a program 
        to promote the development of--
                    (A) hybrid microgrid systems for isolated 
                communities; and
                    (B) microgrid systems to increase the resilience of 
                critical infrastructure.
            (2) Phases.--The program established under paragraph (1) 
        shall be carried out in phases, including--
                    (A) phase I, which shall consist of the development 
                of a feasibility assessment for--
                            (i) hybrid microgrid systems in isolated 
                        communities; and
                            (ii) microgrid systems to enhance the 
                        resilience of critical infrastructure;
                    (B) phase II, which shall consist of the 
                development of an implementation strategy in accordance 
                with paragraph (3) to promote the development of hybrid 
                microgrid systems for isolated communities, 
                particularly for those communities exposed to extreme 
                weather conditions and high energy costs, including 
                electricity, space heating and cooling, and 
                transportation;
                    (C) phase III, which shall--
                            (i) be carried out simultaneously with 
                        phase II; and
                            (ii) consist of the development of an 
                        implementation strategy to promote the 
                        development of microgrid systems that increase 
                        the resilience of critical infrastructure;
                    (D) phase IV, which shall consist of cost-shared 
                demonstration projects that--
                            (i) are based on the strategies developed 
                        under subparagraph (B); and
                            (ii) include the development of physical 
                        and cybersecurity plans to take appropriate 
                        measures to protect and secure the electric 
                        grid; and
                    (E) phase V, which shall establish a benefits 
                analysis plan to help inform regulators, policymakers, 
                and industry stakeholders about the affordability, 
                environmental, and resilience benefits associated with 
                phases II, III, and IV.
            (3) Requirements for strategy.--In developing the strategy 
        under paragraph (2)(B), the Secretary shall consider--
                    (A) establishing future targets for the economic 
                displacement of conventional generation using hybrid 
                microgrid systems, including displacement of 
                conventional generation used for electric power 
                generation, heating and cooling, and transportation;
                    (B) the potential for renewable resources, 
                including wind, solar, and hydropower, to be integrated 
                into a hybrid microgrid system;
                    (C) opportunities for improving the efficiency of 
                existing hybrid microgrid systems;
                    (D) the capacity of the local workforce to operate, 
                maintain, and repair a hybrid microgrid system;
                    (E) opportunities to develop the capacity of the 
                local workforce to operate, maintain, and repair a 
                hybrid microgrid system;
                    (F) leveraging existing capacity within local or 
                regional research organizations, such as organizations 
                based at institutions of higher education, to support 
                development of hybrid microgrid systems, including by 
                testing novel components and systems prior to field 
                deployment;
                    (G) the need for basic infrastructure to develop, 
                deploy, and sustain a hybrid microgrid system;
                    (H) input of traditional knowledge from local 
                leaders of isolated communities in the development of a 
                hybrid microgrid system;
                    (I) the impact of hybrid microgrid systems on 
                defense, homeland security, economic development, and 
                environmental interests;
                    (J) opportunities to leverage existing interagency 
                coordination efforts and recommendations for new 
                interagency coordination efforts to minimize 
                unnecessary overhead, mobilization, and other project 
                costs; and
                    (K) any other criteria the Secretary determines 
                appropriate.
    (c) Collaboration.--The program established under subsection (b)(1) 
shall be carried out in collaboration with relevant stakeholders, 
including, as appropriate--
            (1) States;
            (2) Indian tribes;
            (3) regional entities and regulators;
            (4) units of local government;
            (5) institutions of higher education; and
            (6) private sector entities.
    (d) Report.--Not later than 180 days after the date of enactment of 
this Act, and annually thereafter, the Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce of the House of Representatives a 
report on--
            (1) the efforts to implement the program established under 
        subsection (b)(1); and
            (2) the status of the strategy developed under subsection 
        (b)(2)(B).

SEC. 2015. ELECTRIC SYSTEM GRID ARCHITECTURE, SCENARIO DEVELOPMENT, AND 
              MODELING.

    (a) Grid Architecture and Scenario Development.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall establish and facilitate a collaborative process to 
        develop model grid architecture and a set of future scenarios 
        for the electric system to examine the impacts of different 
        combinations of resources (including different quantities of 
        distributed energy resources and large-scale, central 
        generation) on the electric grid.
            (2) Market structure.--The grid architecture and scenarios 
        developed under paragraph (1) shall account for differences in 
        market structure, including an examination of the potential for 
        stranded costs in each type of market structure.
            (3) Findings.--Based on the findings of grid architecture 
        developed under paragraph (1), the Secretary shall--
                    (A) determine whether any additional standards are 
                necessary to ensure the interoperability of grid 
                systems and associated communications networks; and
                    (B) if the Secretary makes a determination that 
                additional standards are necessary under subparagraph 
                (A), make recommendations for additional standards.
    (b) Modeling.--Subject to subsection (c), the Secretary shall--
            (1) conduct modeling based on the scenarios developed under 
        subsection (a); and
            (2) analyze and evaluate the technical and financial 
        impacts of the models to assist States, utilities, and other 
        stakeholders in--
                    (A) enhancing strategic planning efforts;
                    (B) avoiding stranded costs; and
                    (C) maximizing the cost-effectiveness of future 
                grid-related investments.
    (c) Input.--The Secretary shall develop the scenarios and conduct 
the modeling and analysis under subsections (a) and (b) with 
participation or input, as appropriate, from--
            (1) the National Laboratories;
            (2) States;
            (3) State regulatory authorities;
            (4) transmission organizations;
            (5) representatives of the electric industry;
            (6) academic institutions;
            (7) independent research institutes; and
            (8) other entities.

SEC. 2016. VOLUNTARY MODEL PATHWAYS.

    (a) Establishment of Voluntary Model Pathways.--
            (1) Establishment.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall initiate the 
        development of voluntary model pathways for modernizing the 
        electric grid through a collaborative, public-private effort 
        that--
                    (A) produces illustrative policy pathways that can 
                be adapted for State and regional applications by 
                regulators and policymakers;
                    (B) facilitates the modernization of the electric 
                grid to achieve the objectives described in paragraph 
                (2);
                    (C) ensures a reliable, resilient, affordable, 
                safe, and secure electric system; and
                    (D) acknowledges and provides for different 
                priorities, electric systems, and rate structures 
                across States and regions.
            (2) Objectives.--The pathways established under paragraph 
        (1) shall facilitate achievement of the following objectives:
                    (A) Near real-time situational awareness of the 
                electric system.
                    (B) Data visualization.
                    (C) Advanced monitoring and control of the advanced 
                electric grid.
                    (D) Enhanced certainty for private investment in 
                the electric system.
                    (E) Increased innovation.
                    (F) Greater consumer empowerment.
                    (G) Enhanced grid resilience, reliability, and 
                robustness.
                    (H) Improved--
                            (i) integration of distributed energy 
                        resources;
                            (ii) interoperability of the electric 
                        system; and
                            (iii) predictive modeling and capacity 
                        forecasting.
            (3) Steering committee.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall establish a 
        steering committee to facilitate the development of the 
        pathways under paragraph (1), to be composed of members 
        appointed by the Secretary, consisting of persons with 
        appropriate expertise representing a diverse range of interests 
        in the public, private, and academic sectors, including 
        representatives of--
                    (A) the Smart Grid Task Force; and
                    (B) the Smart Grid Advisory Committee.
    (b) Technical Assistance.--The Secretary may provide technical 
assistance to States, Indian tribes, or units of local government to 
adopt 1 or more elements of the pathways developed under subsection 
(a)(1).

SEC. 2017. PERFORMANCE METRICS FOR ELECTRICITY INFRASTRUCTURE 
              PROVIDERS.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Secretary shall submit to the appropriate committees 
of Congress a report that includes--
            (1) an evaluation of the performance of the electric grid 
        as of the date of the report; and
            (2) a description of the quantified costs and benefits 
        associated with the changes evaluated under the scenarios 
        developed under section 2015.
    (b) Considerations for Development of Metrics.--In developing 
metrics for evaluating and quantifying the electric grid under 
subsection (a), the Secretary shall consider--
            (1) standard methodologies for calculating improvements or 
        deteriorations in the performance metrics, such as reliability, 
        grid efficiency, power quality, consumer satisfaction, 
        sustainability, and financial incentives;
            (2) standard methodologies for calculating value to 
        ratepayers, including broad economic and related impacts from 
        improvements to the performance metrics;
            (3) appropriate ownership and operating roles for electric 
        utilities that would enable improved performance through the 
        adoption of emerging, commercially available or advanced grid 
        technologies or solutions, including--
                    (A) multicustomer microgrids;
                    (B) distributed energy resources;
                    (C) energy storage;
                    (D) electric vehicles;
                    (E) electric vehicle charging infrastructure;
                    (F) integrated information and communications 
                systems;
                    (G) transactive energy systems; and
                    (H) advanced demand management systems; and
            (4) with respect to States, the role of the grid operator 
        in enabling a robust future electric system to ensure that--
                    (A) electric utilities remain financially viable;
                    (B) electric utilities make the needed investments 
                that ensure a reliable, secure, and resilient grid; and
                    (C) costs incurred to transform to an integrated 
                grid are allocated and recovered responsibly, 
                efficiently, and equitably.

SEC. 2018. STATE AND REGIONAL DISTRIBUTION PLANNING.

    (a) In General.--On the request of a State or regional 
organization, the Secretary shall partner with States and regional 
organizations to facilitate the development of State and regional 
electricity distribution plans by--
            (1) conducting a resource assessment and analysis of future 
        demand and distribution requirements; and
            (2) developing open source tools for State and regional 
        planning and operations.
    (b) Risk and Security Analysis.--The assessment under subsection 
(a)(1) shall include--
            (1) the evaluation of the physical and cybersecurity needs 
        of an advanced distribution management system and the 
        integration of distributed energy resources; and
            (2) advanced use of grid architecture to analyze risks in 
        an all-hazards approach that includes communications 
        infrastructure, control systems architecture, and power systems 
        architecture.
    (c) Technical Assistance.--For the purpose of developing State and 
regional electricity distribution plans, the Secretary shall provide 
technical assistance to--
            (1) States;
            (2) regional reliability entities; and
            (3) other distribution asset owners and operators.

SEC. 2019. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary to carry 
out sections 2013 through 2018 $200,000,000 for each of fiscal years 
2017 through 2026.

SEC. 2020. STATE CONSIDERATION OF RESILIENCE.

    (a) Adoption of Standards.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(20) Resilience.--
                    ``(A) Definition of electric grid resilience.--The 
                term `electric grid resilience' means the ability of 
                the electric grid to adapt to changing conditions and 
                withstand and rapidly recover from disruptions.
                    ``(B) Required consideration.--Each electric 
                utility shall incorporate into the regular planning 
                process of the electric utility consideration of 
                investments in electric grid resilience.
                    ``(C) Factors.--Consideration under subparagraph 
                (B) shall include an evaluation of potential benefits 
                of enhancing electric grid resilience, including--
                            ``(i) system stability under severe and 
                        nontraditional hazards;
                            ``(ii) adaptation to region-specific 
                        natural threats and vulnerabilities;
                            ``(iii) adaptation to climate change-
                        related extreme weather disruptions;
                            ``(iv) support provided to interdependent 
                        critical infrastructures reliant on energy 
                        services to operate;
                            ``(v) reduced costs under normal operating 
                        conditions;
                            ``(vi) enhanced distributed generation and 
                        microgrid functionality to operate as an 
                        integrated energy system in intentional 
                        islanding mode;
                            ``(vii) localized energy generation that 
                        avoids incurrence of transmission and 
                        distribution losses;
                            ``(viii) system operational flexibility; 
                        and
                            ``(ix) ancillary environmental benefits, 
                        including greenhouse gas reductions.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding at the end the following:
            ``(7)(A) Not later than 1 year after the date of enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has ratemaking 
        authority), and each nonregulated electric utility, shall--
                    ``(i) commence the consideration referred to in 
                section 111; or
                    ``(ii) set a hearing date for such consideration, 
                with respect to the standard established by paragraph 
                (20) of section 111(d).
            ``(B) Not later than 2 years after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which it has ratemaking 
        authority), and each nonregulated electric utility, shall--
                    ``(i) complete the consideration required under 
                subparagraph (A); and
                    ``(ii) make the determination referred to in 
                section 111 with respect to the standard established by 
                paragraph (20) of section 111(d).''.
            (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
        amended by adding at the end the following: ``In the case of 
        the standard established by paragraph (20) of section 111(d), 
        the reference contained in this subsection to the date of 
        enactment of this Act shall be deemed to be a reference to the 
        date of enactment of that paragraph.''.

                   Subtitle C--Advanced Manufacturing

SEC. 2021. ADVANCED MANUFACTURING OFFICE.

    (a) Establishment.--The Secretary shall establish, within the 
Department, the Advanced Manufacturing Office (referred to in this 
subtitle as the ``Office'')--
            (1) to carry out basic and applied research, development, 
        and demonstration of new, energy-efficient processes and 
        materials--
                    (A) at a scale adequate to prove the value of the 
                processes and materials to manufacturers in multiple 
                industries; and
                    (B) that facilitate investments and commercial 
                scale-up;
            (2) to focus on the conduct of activities that--
                    (A) use new technology and processes to reuse 
                existing products or update existing processes to 
                achieve energy efficiency and promote energy savings; 
                and
                    (B) make use of new and emerging processes and 
                materials;
            (3) to improve workforce development in advanced 
        manufacturing; and
            (4) to enable the competitiveness of manufacturers and 
        energy efficiency of manufacturing in the United States by 
        developing broadly applicable technologies for energy-intensive 
        and energy-dependent manufacturing by supporting research and 
        development directed towards--
                    (A) advanced and critical materials that provide 
                energy savings and efficiency;
                    (B) emerging topics, technology, and processes in 
                advanced manufacturing that promote energy savings;
                    (C) manufacturing platforms for advanced energy 
                technologies; and
                    (D) strategies to address current and future 
                workforce needs within the manufacturing sector.
    (b) Industry Participation.--To the maximum extent practicable, the 
Office shall carry out activities in partnership or collaboration with 
relevant industry stakeholders.
    (c) Interagency and Intra-agency Coordination.--The Secretary shall 
coordinate research, development, demonstration, and commercial 
application activities of the Office among--
            (1) relevant programs within the Department, including--
                    (A) the Office of Energy Efficiency and Renewable 
                Energy;
                    (B) the Office of Fossil Energy;
                    (C) the Office of Nuclear Energy;
                    (D) ARPA-E;
                    (E) the Office of Energy Policy and Systems 
                Analysis; and
                    (F) other offices of the Department, as determined 
                to be appropriate by the Secretary; and
            (2) relevant technology research and development programs 
        and workforce training programs in other Federal agencies.

SEC. 2022. NATIONAL ADVANCED MANUFACTURING PLAN.

    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Secretary, in consultation with the 
Secretary of Commerce, shall enter into an agreement with the National 
Academies to develop a national plan for smart and advanced 
manufacturing technology development and deployment to improve the 
productivity, competitiveness, and energy efficiency of the 
manufacturing sector of the United States.
    (b) Contents.--
            (1) In general.--The plan developed under subsection (a) 
        shall identify areas in which actions by the Secretary and the 
        heads of other relevant Federal agencies would--
                    (A) accelerate the development, deployment, and 
                adoption of smart and advanced manufacturing 
                technologies and processes;
                    (B) result in greater energy efficiency of, and 
                lower environmental impacts for, all United States 
                manufacturers;
                    (C) enhance competitiveness and strengthen the 
                manufacturing sectors of the United States; and
                    (D) improve workforce training, career and 
                technical education, and incumbent worker training 
                between manufacturing industry and training providers.
            (2) Inclusions.--In identifying agency actions under 
        paragraph (1), the Secretary shall include--
                    (A) an assessment of actions of the Department 
                relating to smart and advanced manufacturing that were 
                carried out before or after the date of enactment of 
                this Act;
                    (B) the establishment of voluntary interconnection 
                protocols and performance standards;
                    (C) the commercialization of existing research 
                results;
                    (D) an assessment of existing high-performance and 
                cloud computing infrastructure and opportunities for 
                those technologies to play a role in the design and 
                production of advanced manufacturing technology;
                    (E) an assessment of the research and development 
                opportunities for supply chains related to the 
                manufacture of carbon fiber composite, critical 
                materials, advanced materials, and semiconductors;
                    (F) identification and assessment of financial 
                incentives or demonstration projects that could 
                accelerate the commercialization of advanced 
                technology;
                    (G) an assessment and prioritization of emerging 
                technologies and processes with the potential to 
                increase manufacturing competitiveness;
                    (H) an analysis of the regions and industries that 
                would benefit the most from implementing smart 
                manufacturing technologies;
                    (I) an assessment of--
                            (i) the lessons learned through the decades 
                        long partnership of the Department with the 
                        automotive industry; and
                            (ii) how lessons learned could be applied 
                        to interactions with other industries 
                        (including the aerospace industry) and 
                        including--
                                    (I) an analysis of the resources 
                                needed to expand partnerships with the 
                                Advanced Manufacturing Office to other 
                                industries; and
                                    (II) an assessment of which 
                                industries and technologies would 
                                benefit most from partnering with the 
                                Department, based on--
                                            (aa) cost savings;
                                            (bb) energy savings;
                                            (cc) job creation; and
                                            (dd) environmental impacts; 
                                        and
                    (J) an assessment of current and future workforce 
                needs within the advanced manufacturing industry that 
                identifies any significant skill gaps and provides 
                suggestions on ways to address the gaps.
    (c) Biennial Revisions and Report.--
            (1) Biennial revisions.--Not later than 2 years after the 
        date on which the Secretary completes the plan under subsection 
        (a), and not less frequently than once every 2 years 
        thereafter, the Secretary shall revise the plan to account for 
        advancements in information and communication technology and 
        manufacturing needs after the completion of the initial plan.
            (2) Report.--The Secretary shall submit to Congress after 
        each revision under paragraph (1) a report on the status of 
        implementation of the plan established under subsection (a).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the study under this section $25,000,000.

SEC. 2023. ADVANCED MANUFACTURING SUPPLY CHAIN REPORT.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences under which the National Academy of 
Sciences shall develop a report that evaluates the manufacturing supply 
chains for various advanced manufacturing technologies, including--
            (1) an assessment of the strength, weaknesses, 
        opportunities, and obstacles in the supply chains of advanced 
        manufacturing technologies, including carbon fiber composite 
        manufacturing, critical materials, advanced materials, and 
        semiconductors;
            (2) analyses of--
                    (A) the ways in which the supply chains have 
                changed during the 25-year period preceding the date of 
                enactment of this Act;
                    (B) whether the supply chains have been disrupted 
                by unfair foreign competition;
                    (C) the impact of global trade on the supply 
                chains; and
                    (D) current trends relating to the supply chains;
            (3) for each technology and process assessed, an analysis 
        of which sections of the supply chain are critical for the 
        United States to remain or become competitive in the 
        manufacturing of the technology; and
            (4) recommendations on which emerging technologies and 
        processes the United States should focus on in order to advance 
        innovation in manufacturing capabilities to increase the 
        competitiveness of United States manufacturing.
    (b) Report.--Not later than 2 years after the date on which the 
Secretary enters into the arrangement with the National Academy of 
Sciences under subsection (a), the National Academy of Sciences shall 
submit to the Secretary, the Committee on Energy and Natural Resources 
of the Senate, and the Committee on Energy and Commerce of the House of 
Representatives a report that describes the findings and 
recommendations of the National Academy of Sciences with respect to the 
assessment and analyses conducted under subsection (a).

SEC. 2024. LEVERAGING EXISTING AGENCY PROGRAMS TO ASSIST SMALL AND 
              MEDIUM MANUFACTURERS.

    (a) Collaboration With National Laboratories and Institutions of 
Higher Education.--The Office shall work in collaboration with National 
Laboratories and institutions of higher education to provide assistance 
to small and medium manufacturers with respect to smart manufacturing 
technologies and practices.
    (b) Expansion of Technical Assistance Programs.--The Secretary 
shall expand the scope of technologies covered by the Industrial 
Assessment Centers--
            (1) to include smart manufacturing technologies and 
        practices; and
            (2) to provide the directors of the Industrial Assessment 
        Centers with the training and tools necessary to provide to 
        manufacturers technical assistance in smart manufacturing 
        technologies and practices, including energy management 
        systems.

SEC. 2025. ADVANCED MANUFACTURING INNOVATION HUBS.

    (a) Definitions.--In this section:
            (1) Advanced manufacturing.--The term ``advanced 
        manufacturing'' means--
                    (A) a technology, or process that--
                            (i) depends on the use and coordination of 
                        information, automation, computation, software, 
                        sensing, and networking;
                            (ii) makes use of new materials or reuses 
                        existing materials; or
                            (iii) enhances the manufacturing 
                        competitiveness of the United States;
                    (B) research, development, demonstration, and 
                commercial application activities necessary to ensure 
                the long-term, secure, and sustainable supply of 
                advanced materials; or
                    (C) any other innovative energy technology area 
                identified by the Secretary.
            (2) Hub.--The term ``Hub'' means an Advanced Manufacturing 
        Innovation Hub established under subsection (b).
            (3) Qualifying entity.--The term ``qualifying entity'' 
        means--
                    (A) an institution of higher education in 
                partnership with industry;
                    (B) an appropriate Federal or State entity, 
                including Federally Funded Research and Development 
                Centers of the Department;
                    (C) a nongovernmental organization with expertise 
                in advanced manufacturing research, development, 
                demonstration, or commercial application activities; or
                    (D) any other relevant entity that the Secretary 
                considers appropriate.
    (b) Authorization of Program.--
            (1) In general.--The Secretary shall carry out a program to 
        enhance the manufacturing competitiveness of the United States 
        by making awards to consortia for establishing and operating 
        Advanced Manufacturing Innovation Hubs to conduct and support 
        multidisciplinary, collaborative research, development, 
        demonstration, and commercial application of advance 
        manufacturing technologies.
            (2) Centralized location.--To the maximum extent 
        practicable, each Hub provided an award under this section 
        shall be located at 1 centralized location.
            (3) Technology development focus.--The Secretary shall 
        designate for each Hub a unique advanced manufacturing 
        technology focus, process, or technology.
            (4) Coordination.--The Secretary shall ensure the 
        coordination of, and avoid unnecessary duplication of, the 
        activities of Hubs with the activities of other research 
        entities of the Department (including the National Laboratories 
        and the Advanced Research Projects Agency--Energy) and 
        industry.
    (c) Consortia.--
            (1) Eligibility.--To be eligible to receive an award under 
        this section for the establishment and operation of a Hub, a 
        consortium shall--
                    (A) be composed of not fewer than 2 qualifying 
                entities; and
                    (B) operate subject to an agreement entered into by 
                the members of the consortium that documents--
                            (i) the proposed partnership agreement, 
                        including the governance and management 
                        structure of the Hub;
                            (ii) measures to enable the cost-effective 
                        implementation of the program under this 
                        section;
                            (iii) a proposed budget for the Hub, 
                        including a description of financial 
                        contributions from non-Federal sources;
                            (iv) an accounting structure for the Hub 
                        that enables the Secretary to ensure that the 
                        consortium has complied with the requirements 
                        of this section; and
                            (v) a plan to coordinate workforce training 
                        within Hub locations.
            (2) Application.--
                    (A) In general.--A consortium seeking to establish 
                and operate a Hub under this section, acting through a 
                prime applicant, shall submit to the Secretary an 
                application that addresses the elements of the 
                consortium agreement required under paragraph (1)(B).
                    (B) Multiple locations.--If the consortium members 
                are not located at 1 centralized location, an 
                application submitted under subparagraph (A) shall 
                include a communications plan that ensures close 
                coordination and integration of the activities of the 
                Hub.
    (d) Selection and Schedule.--
            (1) In general.--The Secretary shall select consortia for 
        awards for the establishment and operation of Hubs through a 
        competitive selection process.
            (2) Considerations.--In selecting consortia under this 
        section, the Secretary shall consider--
                    (A) the information a consortium is required to 
                document under subsection (c)(1)(B);
                    (B) regional diversity; and
                    (C) any existing facilities that a consortium would 
                provide for Hub activities.
            (3) Term.--
                    (A) In general.--Awards made to a Hub under this 
                section shall be for a period of not more than 5 years.
                    (B) Renewal.--At the end of the 5-year period of an 
                award under this section, the Secretary may renew the 
                award, subject to a rigorous merit review.
    (e) Hub Operations.--
            (1) In general.--Each Hub shall conduct or provide for 
        multidisciplinary, collaborative research, development, 
        demonstration, and, as appropriate, commercial application of 
        advanced manufacturing technologies within the technology 
        development focus for the Hub designated under subsection 
        (b)(3).
            (2) Requirements.--Each Hub shall--
                    (A) encourage collaboration and communication among 
                the member qualifying entities of the consortium and 
                awardees by conducting activities, to the maximum 
                extent practicable, at 1 centralized location;
                    (B) develop and publish on the website of the 
                Department proposed plans and programs;
                    (C) submit an annual report to the Secretary that 
                summarizes, during the period covered by the report, 
                the activities of the Hub, including--
                            (i) a detailed description of 
                        organizational expenditures by the Hub; and
                            (ii) a description of each project 
                        undertaken by the Hub; and
                    (D) monitor project implementation and 
                coordination.
            (3) Conflicts of interest.--
                    (A) Procedures.--A Hub shall maintain conflict of 
                interest procedures, consistent with the procedures of 
                the Department, to ensure that employees and consortia 
                designees for Hub activities that are in decisionmaking 
                capacities--
                            (i) disclose all material conflicts of 
                        interest; and
                            (ii) avoid conflicts of interest.
                    (B) Disqualification and revocation.--The Secretary 
                may disqualify an application or revoke funds 
                distributed to a Hub if the Secretary discovers a 
                failure to comply with conflict of interest procedures 
                established under subparagraph (A).
            (4) Prohibition of construction.--
                    (A) In general.--No funds provided under this 
                section may be used for the construction of new 
                buildings or facilities for a Hub.
                    (B) Cost-sharing agreement.--Construction of new 
                buildings or facilities for a Hub shall not be 
                considered as part of the non-Federal share of a cost-
                sharing agreement of the Hub.
                    (C) Test bed and renovation exception.--Nothing in 
                this paragraph prohibits the use of funds provided 
                under this section, or non-Federal cost share funds, 
                for research or for the construction of a test bed or 
                renovations to existing buildings or facilities for the 
                purposes of research, if the Secretary determines that 
                the test bed or renovations are limited to a scope and 
                scale necessary for the research to be conducted.
    (f) Termination.--The Secretary may terminate an underperforming 
Hub for cause during the award period.
    (g) Loan Program.--The consortium from each Hub, in consultation 
with the Secretary, may identify best in class technologies that would 
be eligible for technical assistance, including assistance from loan 
programs of the Department, the Community Development Financial 
Institution Program, Small Business Administration loan programs, Small 
Business Innovation Research and Small Business Technology Transfer 
programs, and rural energy loan programs of the Department of 
Agriculture.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $300,000,000.

SEC. 2026. ADVANCED MATERIALS PRIZE COMPETITION PILOT PROGRAM.

    (a) In General.--The Secretary shall establish a prize competition 
under which eligible entities compete to develop and verifiably 
demonstrate advanced materials technology that reduces energy costs or 
reduces carbon dioxide emissions by at least 20 percent.
    (b) Competition Board.--The Secretary shall establish a Competition 
Board to administer the prize competition, to be composed of members 
from the Department and industry.
    (c) Eligible Entities.--To be eligible for the competition, an 
entity shall be--
            (1) a non-public entity; or
            (2) a public-private partnership in which the private 
        entity is greater than 50 percent of the partnership.
    (d) Awards.--As part of the prize competition established under 
this section, the Competition Board shall award to eligible entities 
not more than 5 prizes of not more than $2,000,000 each.
    (e) Duration.--The duration for the prize competition established 
under this section shall be not less than 2 years or more than 5 years.
    (f) Selection.--In selecting a winner for a prize awarded under the 
prize competition, the Competition Board shall evaluate the technology 
developed by the eligible entity based on the following criteria:
            (1) The amount by which the technology would increase 
        energy savings or decrease carbon dioxide emissions.
            (2) The ability of the technology to be deployed in 
        commercial application in a variety of industries or supply 
        chains.
            (3) The potential for private sector investment in the 
        technology.
            (4) The potential of the technology to transform an 
        existing industry or establish a new industry.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000.

SEC. 2027. PILOT PROGRAM WITH ORIGINAL EQUIPMENT MANUFACTURERS AND 
              PUBLIC UTILITIES.

    The Office, in collaboration with the Industrial Assessment Centers 
at the Department, the National Institute of Standards and Technology, 
the Manufacturing Extension Partnership, original equipment 
manufacturers, and public utilities, shall develop a pilot program to 
work with small- and medium-manufacturers in supply chains of original 
equipment manufacturers to provide--
            (1) an assessment of manufacturing efficiency; and
            (2) best practices and technical assistance for 
        implementing energy savings and efficiency in the manufacturing 
        process.

                   Subtitle D--Building Better Trucks

SEC. 2031. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE 
              PROGRAM.

    Section 136 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (A) 
                        through (C) as clauses (i) through (iii), 
                        respectively, and indenting appropriately;
                            (ii) by striking ``(1) Advanced technology 
                        vehicle.--'' and all that follows through 
                        ``meets--'' and inserting the following:
            ``(1) Advanced technology vehicle.--The term `advanced 
        technology vehicle' means--
                    ``(A) an ultra efficient vehicle;
                    ``(B) a light duty vehicle that meets--'';
                            (iii) in subparagraph (B)(iii) (as so 
                        redesignated), by striking the period at the 
                        end and inserting ``; or''; and
                            (iv) by adding at the end the following:
                    ``(C) a medium-duty or heavy-duty vehicle that--
                            ``(i)(I) is subject to regulations 
                        established by the Secretary of Transportation 
                        under parts 523, 534, and 535 of title 49, Code 
                        of Federal Regulations (or successor 
                        regulations); or
                            ``(II) is included in a vehicle type or 
                        class that offers opportunities to 
                        substantially reduce consumption of 
                        conventional motor fuel, as determined by the 
                        Secretary by rule; and
                            ``(ii) reduces consumption of conventional 
                        motor fuel by 10 percent or greater as compared 
                        to model year 2010 medium- and heavy-duty 
                        vehicles of a similar vehicle type or class, 
                        unless the Secretary determines by rule that--
                                    ``(I) the percentage is not 
                                achievable for a specific vehicle type 
                                or class; and
                                    ``(II) an alternative percentage 
                                for that vehicle type or class will 
                                result in substantial reductions in 
                                motor fuel consumption within the 
                                United States.''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Qualifying components.--The term `qualifying 
        components' means components, systems, or groups of subsystems 
        that the Secretary determines--
                    ``(A) to be designed to improve fuel economy or 
                otherwise substantially reduce consumption of 
                conventional motor fuel; or
                    ``(B) to contribute measurably to the overall 
                improved fuel use of an advanced technology vehicle.'';
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``or other vehicle'' after ``ultra efficient 
        vehicle'';
            (3) by striking subsection (f) and inserting the following:
    ``(f) Fees.--
            ``(1) In general.--The Secretary shall charge a closing fee 
        of 50 basis points of the loan to cover applicable 
        administrative expenses.
            ``(2) Use of fees.--Fees collected under paragraph (1) 
        shall--
                    ``(A) be deposited by the Secretary into the 
                general fund of the Treasury; and
                    ``(B) remain available until expended, subject to 
                such other conditions as are contained in annual 
                appropriations Acts.''; and
            (4) in subsection (h)(1)(B), by striking ``automobiles, or 
        components of automobiles'' and inserting ``automobiles or 
        other vehicles, or components of automobiles or other 
        vehicles''.

                     Subtitle E--Vehicle Innovation

SEC. 2041. FINDINGS.

    Congress finds the following:
            (1) According to the Energy Information Administration, the 
        transportation sector accounts for approximately 28 percent of 
        the United States primary energy demand and greenhouse gas 
        emissions, and 21 percent of global oil demand.
            (2) The United States transportation sector is over 90-
        percent dependent on petroleum.
            (3) United States heavy truck fuel consumption will 
        increase 27 percent by 2030.
            (4) The domestic automotive and commercial vehicle 
        manufacturing sectors have increasingly limited resources for 
        research, development, and engineering of advanced 
        technologies.
            (5) Vehicle, engine, and component manufacturers are 
        playing a more important role in vehicle technology 
        development, and should be better integrated into Federal 
        research efforts.
            (6) Priorities for the vehicle technologies research of the 
        Department have shifted drastically in recent years among 
        diesel hybrids, hydrogen fuel cell vehicles, and plug-in 
        electric hybrids, with little continuity among them.
            (7) The integration of vehicle, communication, and 
        infrastructure technologies has great potential for efficiency 
        gains through better management of the total transportation 
        system.
            (8) The Federal Government should balance its role in 
        researching longer-term exploratory concepts and developing 
        nearer-term transformational technologies for vehicles.

SEC. 2042. OBJECTIVES.

    The objectives of this subtitle are--
            (1) to develop United States technologies and practices 
        that--
                    (A) improve the fuel efficiency and emissions of 
                all vehicles produced in the United States; and
                    (B) reduce vehicle reliance on petroleum-based 
                fuels;
            (2) to support domestic research, development, engineering, 
        demonstration, and commercial application and manufacturing of 
        advanced vehicles, engines, and components;
            (3) to enable vehicles to move larger volumes of goods and 
        more passengers with less energy and emissions;
            (4) to develop cost-effective advanced technologies for 
        wide-scale utilization throughout the passenger, commercial, 
        government, and transit vehicle sectors;
            (5) to allow for greater consumer choice of vehicle 
        technologies and fuels;
            (6) shorten technology development and integration cycles 
        in the vehicle industry;
            (7) to ensure a proper balance and diversity of Federal 
        investment in vehicle technologies; and
            (8) to strengthen partnerships between Federal and State 
        governmental agencies and the private and academic sectors.

SEC. 2043. VEHICLE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Program.--
            (1) Activities.--The Secretary shall conduct a program of 
        basic and applied research, development, engineering, 
        demonstration, and commercial application activities on 
        materials, technologies, and processes with the potential to 
        substantially reduce or eliminate petroleum use and the 
        emissions of passenger and commercial vehicles in the United 
        States, including activities in the areas of--
                    (A) hybridization or full electrification of 
                vehicle systems;
                    (B) batteries and other energy storage devices;
                    (C) power electronics;
                    (D) vehicle, component, and subsystem manufacturing 
                technologies and processes;
                    (E) engine efficiency and combustion optimization;
                    (F) waste heat recovery;
                    (G) transmission and drivetrains;
                    (H) hydrogen vehicle technologies, including fuel 
                cells and internal combustion engines, and hydrogen 
                infrastructure, including hydrogen energy storage to 
                enable renewables and provide hydrogen for fuel and 
                power;
                    (I) natural gas vehicle technologies;
                    (J) aerodynamics, rolling resistance (including 
                tires and wheel assemblies), and accessory power loads 
                of vehicles and associated equipment;
                    (K) vehicle weight reduction, including 
                lightweighting materials and the development of 
                manufacturing processes to fabricate, assemble, and use 
                dissimilar materials;
                    (L) friction and wear reduction;
                    (M) engine and component durability;
                    (N) innovative propulsion systems;
                    (O) advanced boosting systems;
                    (P) hydraulic hybrid technologies;
                    (Q) engine compatibility with and optimization for 
                a variety of transportation fuels including natural gas 
                and other liquid and gaseous fuels;
                    (R) predictive engineering, modeling, and 
                simulation of vehicle and transportation systems;
                    (S) refueling and charging infrastructure for 
                alternative fueled and electric or plug-in electric 
                hybrid vehicles, including the unique challenges facing 
                rural areas;
                    (T) gaseous fuels storage systems and system 
                integration and optimization;
                    (U) sensing, communications, and actuation 
                technologies for vehicle, electrical grid, and 
                infrastructure;
                    (V) efficient use, substitution, and recycling of 
                potentially critical materials in vehicles, including 
                rare earth elements and precious metals, at risk of 
                supply disruption;
                    (W) aftertreatment technologies;
                    (X) thermal management of battery systems;
                    (Y) retrofitting advanced vehicle technologies to 
                existing vehicles;
                    (Z) development of common standards, 
                specifications, and architectures for both 
                transportation and stationary battery applications;
                    (AA) advanced internal combustion engines;
                    (BB) mild hybrid;
                    (CC) engine down speeding; and
                    (DD) other research areas as determined by the 
                Secretary.
            (2) Transformational technology.--The Secretary shall 
        ensure that the Department continues to support research, 
        development, engineering, demonstration, and commercial 
        application activities and maintains competency in mid- to 
        long-term transformational vehicle technologies with potential 
        to achieve deep reductions in petroleum use and emissions, 
        including activities in the areas of--
                    (A) hydrogen vehicle technologies, including fuel 
                cells, hydrogen storage, infrastructure, and activities 
                in hydrogen technology validation and safety codes and 
                standards;
                    (B) multiple battery chemistries and novel energy 
                storage devices, including nonchemical batteries and 
                electromechanical storage technologies such as 
                hydraulics, flywheels, and compressed air storage;
                    (C) communication and connectivity among vehicles, 
                infrastructure, and the electrical grid; and
                    (D) other innovative technologies research and 
                development, as determined by the Secretary.
            (3) Industry participation.--
                    (A) In general.--To the maximum extent practicable, 
                activities under this section shall be carried out in 
                partnership or collaboration with automotive 
                manufacturers, heavy commercial, vocational, and 
                transit vehicle manufacturers, qualified plug-in 
                electric vehicle manufacturers, compressed natural gas 
                vehicle manufacturers, vehicle and engine equipment and 
                component manufacturers, manufacturing equipment 
                manufacturers, advanced vehicle service providers, fuel 
                producers and energy suppliers, electric utilities, 
                institutions of higher education, the National 
                Laboratories (as that term is defined in section 2 of 
                the Energy Policy Act of 2005 (42 U.S.C. 15801)), and 
                independent research laboratories.
                    (B) Requirements.--In carrying out this section, 
                the Secretary shall--
                            (i)(I) determine whether a wide range of 
                        companies that manufacture or assemble vehicles 
                        or components in the United States are 
                        represented in ongoing public private 
                        partnership activities, including firms that 
                        have not traditionally participated in 
                        federally sponsored research and development 
                        activities; and
                            (II) if possible, partner with firms 
                        described in subclause (II) that conduct 
                        significant and relevant research and 
                        development activities in the United States;
                            (ii) leverage the capabilities and 
                        resources of, and formalize partnerships with, 
                        industry-led stakeholder organizations, 
                        nonprofit organizations, industry consortia, 
                        and trade associations with expertise in the 
                        research and development of, and education and 
                        outreach activities in, advanced automotive and 
                        commercial vehicle technologies;
                            (iii) develop more effective processes for 
                        transferring research findings and technologies 
                        to industry;
                            (iv) give consideration to conversion of 
                        existing or former vehicle technology 
                        development or manufacturing facilities for the 
                        purposes of this section;
                            (v) support public-private partnerships 
                        dedicated to overcoming barriers in commercial 
                        application of transformational vehicle 
                        technologies that use the industry-led 
                        technology development facilities of entities 
                        with demonstrated expertise in successfully 
                        designing and engineering pre-commercial 
                        generations of transformational vehicle 
                        technology; and
                            (vi) promote efforts to ensure that 
                        technology research, development, engineering, 
                        and commercial application activities funded 
                        under this section are carried out in the 
                        United States.
            (4) Interagency and intraagency coordination.--To the 
        maximum extent practicable, the Secretary shall coordinate 
        research, development, demonstration, and commercial 
        application activities among--
                    (A) relevant programs within the Department, 
                including--
                            (i) the Office of Energy Efficiency and 
                        Renewable Energy;
                            (ii) the Office of Science;
                            (iii) the Office of Electricity Delivery 
                        and Energy Reliability;
                            (iv) the Office of Fossil Energy;
                            (v) the Advanced Research Projects Agency--
                        Energy; and
                            (vi) other offices as determined by the 
                        Secretary; and
                    (B) relevant technology research and development 
                programs within other Federal agencies, as determined 
                by the Secretary.
            (5) Coordination and nonduplication.--In coordinating 
        activities carried out under this section, the Secretary shall 
        ensure, to the maximum extent practicable, that the activities 
        do not duplicate those of other programs within the Department 
        or other relevant research agencies.
            (6) Federal demonstration of technologies.--The Secretary 
        shall make information available to procurement programs of 
        Federal agencies regarding the potential to demonstrate 
        technologies resulting from activities funded through programs 
        under this section.
            (7) Intergovernmental coordination.--The Secretary shall 
        seek opportunities to leverage resources and support 
        initiatives of State and local governments in developing and 
        promoting advanced vehicle technologies, manufacturing, and 
        infrastructure.
            (8) Criteria.--In awarding grants under this program, the 
        Secretary shall give priority to those technologies (either 
        individually or as part of a system) that--
                    (A) provide the greatest aggregate fuel savings 
                based on the reasonable projected sales volumes of the 
                technology; and
                    (B) provide the greatest increase in employment in 
                the United States.
    (b) Sensing and Communications Technologies.--The Secretary, in 
coordination with the relevant research programs of other Federal 
agencies, shall conduct research, development, engineering, 
demonstration, and deployment activities on connectivity of vehicle 
roadway, vulnerable road users, traffic control systems, and 
transportation data systems, including on sensing, data, computation, 
communication, cybersecurity, and actuation technologies that allow for 
improved safety, reduced energy and fuel use, optimized traffic flow, 
and vehicle electrification, including technologies for--
            (1) onboard vehicle, engine, transmission and component 
        sensing, actuation, and calibration;
            (2) vehicle-to-vehicle sensing and communication;
            (3) vehicle-to-infrastructure sensing and communication;
            (4) vehicle-to-pedestrian and vehicle-to-bicyclist sensing 
        and communication; and
            (5) vehicle integration with the electrical grid.
    (c) Manufacturing.--The Secretary shall carry out a research, 
development, engineering, demonstration, and commercial application 
program of advanced vehicle manufacturing technologies and practices, 
including innovative processes--
            (1) to increase the production rate and decrease the cost 
        of advanced battery and fuel cell manufacturing;
            (2) to vary the capability of individual manufacturing 
        facilities to accommodate different battery chemistries and 
        configurations;
            (3) to reduce waste streams, emissions, and energy 
        intensity of vehicle, engine, advanced battery and component 
        manufacturing processes;
            (4) to recycle and remanufacture used batteries and other 
        vehicle components for reuse in vehicles or stationary 
        applications;
            (5) to develop manufacturing processes to effectively 
        fabricate, assemble, and produce cost-effective lightweight 
        materials such as advanced aluminum and other metal alloys, 
        polymeric composites, and carbon fiber for use in vehicles;
            (6) to produce lightweight high pressure storage systems 
        for gaseous fuels;
            (7) to design and manufacture purpose-built hydrogen fuel 
        cell vehicles and components;
            (8) to improve the calendar life and cycle life of advanced 
        batteries; and
            (9) to produce permanent magnets for advanced vehicles.
    (d) User Testing Facilities.--Activities under this section may 
include construction, expansion, or modification of new and existing 
vehicle, engine, and component research and testing facilities for--
            (1) testing or simulating interoperability of a variety of 
        vehicle components and systems, including the technologies 
        described in subsection (b);
            (2) subjecting whole or partial vehicle platforms to fully 
        representative duty cycles and operating conditions;
            (3) developing and demonstrating a range of chemistries and 
        configurations for advanced vehicle battery manufacturing;
            (4) developing and demonstrating test cycles for new and 
        alternative fuels, and other advanced vehicle technologies;
            (5) developing and demonstrating methods to charge electric 
        vehicles and connect them to the electric grid; and
            (6) developing, testing, and demonstrating hydrogen and 
        natural gas refueling station technologies.
    (e) Reporting.--
            (1) Technologies developed.--Not later than 18 months after 
        the date of enactment of this Act and annually thereafter 
        through 2020, the Secretary shall submit to Congress a report 
        regarding the technologies developed as a result of the 
        activities authorized by this section, with a particular 
        emphasis on whether the technologies were successfully adopted 
        for commercial applications, and if so, whether products 
        relying on those technologies are manufactured in the United 
        States.
            (2) Additional matters.--At the end of each fiscal year 
        through 2020 the Secretary shall submit to the relevant 
        Congressional committees of jurisdiction an annual report 
        describing activities undertaken in the previous year under 
        this section, active industry participants, efforts to recruit 
        new participants committed to design, engineering, and 
        manufacturing of advanced vehicle technologies in the United 
        States, progress of the program in meeting goals and timelines, 
        and a strategic plan for funding of activities across agencies.

SEC. 2044. MEDIUM- AND HEAVY-DUTY COMMERCIAL AND TRANSIT VEHICLES 
              PROGRAM.

    (a) Program.--
            (1) In general.--The Secretary, in partnership with 
        relevant research and development programs in other Federal 
        agencies, and a range of appropriate industry stakeholders, 
        shall carry out a program of cooperative research, development, 
        demonstration, and commercial application activities on 
        advanced technologies for medium- to heavy-duty commercial, 
        vocational, recreational, and transit vehicles, including 
        activities in the areas of--
                    (A) engine efficiency and combustion research;
                    (B) onboard storage technologies for compressed and 
                liquefied natural gas;
                    (C) development and integration of engine 
                technologies designed for natural gas operation of a 
                variety of vehicle platforms;
                    (D) waste heat recovery and conversion;
                    (E) improved aerodynamics and tire rolling 
                resistance;
                    (F) energy and space-efficient emissions control 
                systems;
                    (G) mild hybrid, heavy hybrid, hybrid hydraulic, 
                plug-in hybrid, and electric platforms, and energy 
                storage technologies;
                    (H) drivetrain optimization;
                    (I) friction and wear reduction;
                    (J) engine idle and parasitic energy loss 
                reduction;
                    (K) electrification of accessory loads;
                    (L) onboard sensing and communications 
                technologies;
                    (M) advanced lightweighting materials and vehicle 
                designs;
                    (N) increasing load capacity per vehicle;
                    (O) thermal management of battery systems;
                    (P) recharging infrastructure;
                    (Q) compressed natural gas infrastructure;
                    (R) advanced internal combustion engines;
                    (S) complete vehicle and power pack modeling, 
                simulation, and testing;
                    (T) hydrogen vehicle technologies, including fuel 
                cells and internal combustion engines, and hydrogen 
                infrastructure, including hydrogen energy storage to 
                enable renewables and provide hydrogen for fuel and 
                power;
                    (U) retrofitting advanced technologies onto 
                existing truck fleets;
                    (V) advanced boosting systems;
                    (W) engine down speeding; and
                    (X) integration of these and other advanced systems 
                onto a single truck and trailer platform.
            (2) Reporting.--At the end of each fiscal year through 
        fiscal year 2020, the Secretary shall submit to Congress an 
        annual report describing activities undertaken in the previous 
        year under this section, active industry participants, efforts 
        to recruit new participants, progress of the program in meeting 
        goals and timelines, and a strategic plan for funding of 
        activities across agencies.
    (b) Class 8 Truck and Trailer Systems Demonstration.--
            (1) In general.--The Secretary shall conduct a competitive 
        grant program to demonstrate the integration of multiple 
        advanced technologies on Class 8 truck and trailer platforms, 
        including a combination of technologies listed in subsection 
        (a)(1).
            (2) Applicant teams.--Applicant teams may be comprised of 
        truck and trailer manufacturers, engine and component 
        manufacturers, fleet customers, university researchers, and 
        other applicants as appropriate for the development and 
        demonstration of integrated Class 8 truck and trailer systems.
    (c) Technology Testing and Metrics.--The Secretary, in coordination 
with the partners of the interagency research program described in 
subsection (a)(1)--
            (1) shall develop standard testing procedures and 
        technologies for evaluating the performance of advanced heavy 
        vehicle technologies under a range of representative duty 
        cycles and operating conditions, including for heavy hybrid 
        propulsion systems;
            (2) shall evaluate heavy vehicle performance using work 
        performance-based metrics other than those based on miles per 
        gallon, including those based on units of volume and weight 
        transported for freight applications, and appropriate metrics 
        based on the work performed by nonroad systems; and
            (3) may construct heavy duty truck and bus testing 
        facilities.
    (d) Nonroad Systems Pilot Program.--The Secretary shall undertake a 
pilot program of research, development, demonstration, and commercial 
applications of technologies to improve total machine or system 
efficiency for nonroad mobile equipment including agricultural, 
construction, air, and sea port equipment, and shall seek opportunities 
to transfer relevant research findings and technologies between the 
nonroad and on-highway equipment and vehicle sectors.

SEC. 2045. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for 
research, development, engineering, demonstration, and commercial 
application of vehicles and related technologies in the United States, 
including activities authorized under this subtitle--
            (1) for fiscal year 2016, $313,567,000;
            (2) for fiscal year 2017, $326,109,000;
            (3) for fiscal year 2018, $339,154,000;
            (4) for fiscal year 2019, $352,720,000; and
            (5) for fiscal year 2020, $366,829,000.

                   Subtitle F--Carbon Fiber Recycling

SEC. 2051. RECYCLED CARBON FIBER STUDY.

    (a) Study.--The Secretary shall conduct a study on--
            (1) the technology of recycled carbon fiber and production 
        waste carbon fiber; and
            (2) the potential lifecycle energy savings and economic 
        impact of recycled carbon fiber.
    (b) Factors for Consideration.--In conducting the study under 
subsection (a), the Secretary shall take into consideration--
            (1) the quantity of recycled carbon fiber or production 
        waste carbon fiber that would make the use of recycled carbon 
        fiber or production waste carbon fiber economically viable;
            (2) any existing or potential barriers to recycling carbon 
        fiber or using recycled carbon fiber;
            (3) any financial incentives that may be necessary for the 
        development of recycled carbon fiber or production waste carbon 
        fiber;
            (4) the potential lifecycle savings in energy from 
        producing recycled carbon fiber, as compared to producing new 
        carbon fiber;
            (5) the best and highest use for recycled carbon fiber;
            (6) the potential reduction in carbon dioxide emissions 
        from producing recycled carbon fiber, as compared to producing 
        new carbon fiber;
            (7) any economic benefits gained from using recycled carbon 
        fiber or production waste carbon fiber;
            (8) workforce training and skills needed to address labor 
        demands in the development of recycled carbon fiber or 
        production waste carbon fiber; and
            (9) how the Department can leverage existing efforts in the 
        industry on the use of production waste carbon fiber.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under subsection (a).

SEC. 2052. CARBON FIBER RECYCLING DEMONSTRATION PROJECT.

    The Secretary shall consult with the aviation and automotive 
industries and existing programs of the Advanced Manufacturing Office 
of the Department to develop a carbon fiber recycling demonstration 
project.

SEC. 2053. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$10,000,000, to remain available until expended.

    Subtitle G--Job Creation Through Energy Efficient Manufacturing

SEC. 2061. PURPOSE.

    The purpose of this subtitle is to encourage widespread deployment 
of energy efficiency and onsite renewable energy technologies in 
manufacturing and industrial facilities throughout the United States 
through the establishment of a Financing Energy Efficient Manufacturing 
Program that would--
            (1) encourage the widespread availability of financial 
        products and programs with attractive rates and terms that 
        significantly reduce or eliminate upfront expenses to allow 
        manufacturing and industrial businesses to invest in energy 
        efficiency measures, onsite clean and renewable energy systems, 
        smart grid systems, and alternative vehicle fleets by providing 
        credit support, credit enhancement, secondary markets, and 
        other support to originators of the financial products and 
        sponsors of the financing programs; and
            (2) help building owners to invest in measures and systems 
        that reduce energy costs, in many cases creating a net cost 
        savings that can be realized in the short-term, and may also 
        allow manufacturing and industrial business owners to defer 
        capital expenditures, save money to hire new workers, and 
        increase the value, comfort, and sustainability of the property 
        of the owners.

SEC. 2062. DEFINITIONS.

    In this subtitle:
            (1) Covered program.--The term ``covered program'' means a 
        program to finance energy efficiency retrofit, onsite clean and 
        renewable energy, smart grid, and alternative vehicle fleet 
        projects for industrial businesses.
            (2) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 2063. FINANCING ENERGY EFFICIENT MANUFACTURING PROGRAM.

    (a) Establishment.--The Secretary shall establish a program, to be 
known as the ``Financing Energy Efficient Manufacturing Program'', 
under which the Secretary shall provide grants to States to establish 
or expand covered programs.
    (b) Applications.--
            (1) In general.--A State may apply to the Secretary for a 
        grant under subsection (a) to establish or expand covered 
        programs.
            (2) Evaluation.--The Secretary shall evaluate applications 
        submitted by States under paragraph (1) on the basis of--
                    (A) the likelihood that the covered program would--
                            (i) be established or expanded; and
                            (ii) increase the total investment and 
                        energy savings of retrofit projects to be 
                        supported;
                    (B) in the case of industrial business efficiency 
                financing initiatives conducted under subsection (c), 
                evidence of multi-State cooperation and coordination 
                with lenders, financiers, and owners; and
                    (C) other factors that would advance the purposes 
                of this subtitle, as determined by the Secretary.
    (c) Multi-State Facilitation.--The Secretary shall consult with 
States and relevant stakeholders with applicable expertise to establish 
a process to identify financing opportunities for manufacturing and 
industrial business with asset portfolios across multiple States.
    (d) Administration.--A State receiving a grant under subsection (a) 
shall give a higher priority to covered programs that--
            (1) leverage private and non-Federal sources of funding; 
        and
            (2) aim explicitly to expand the use of energy efficiency 
        project financing using private sources of funding.
    (e) Davis-Bacon Compliance.--
            (1) In general.--All laborers and mechanics employed on 
        projects funded directly by or assisted in whole or in part by 
        this subtitle shall be paid wages at rates not less than those 
        prevailing on projects of a character similar in the locality 
        as determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of part A of subtitle II of title 
        40, United States Code (commonly referred to as the ``Davis-
        Bacon Act'').
            (2) Authority.--With respect to the labor standards 
        specified in this subsection, the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
    (f) Reports.--
            (1) In general.--Not later than 2 years after the date of 
        receipt of a grant under this subtitle, a State shall submit to 
        the Secretary, the Committee on Energy and Natural Resources of 
        the Senate, and the Committee on Energy and Commerce of the 
        House of Representatives a report that describes the 
        performance of covered programs carried out using the grant 
        funds.
            (2) Data.--
                    (A) In general.--A State receiving a grant under 
                this subtitle, in cooperation with the Secretary, 
                shall--
                            (i) collect and share data resulting from 
                        covered programs carried out under this 
                        subtitle; and
                            (ii) include in the report submitted under 
                        paragraph (1) any data collected under clause 
                        (i).
                    (B) Department databases.--The Secretary shall 
                incorporate data described in subparagraph (A) into 
                appropriate databases of the Department, with 
                provisions for the protection of confidential business 
                data.

SEC. 2064. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this subtitle $250,000,000, to remain available until expended.
    (b) State Energy Offices.--Funds provided to a State under this 
subtitle shall be provided to the office within the State that is 
responsible for developing the State energy plan for the State under 
part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq).

              Subtitle H--21\st\ Century Energy Workforce

SEC. 2101. FINDINGS.

    Congress finds that--
            (1) the energy sector is the third-largest industry in the 
        United States;
            (2) 1,500,000 new skilled workers will be needed in the 
        energy sector over the next 15 years; and
            (3) a skilled workforce is a critical component of ensuring 
        the growth of the energy sector in the United States.

SEC. 2102. DEFINITIONS.

    In this subtitle:
            (1) Board.--The term ``Board'' means the National Center of 
        Excellence for the 21\st\ Century Workforce Advisory Board 
        established under section 2103(a).
            (2) Community college.--The term ``community college'' 
        means a junior or community college (as defined in section 
        312(f) of the Higher Education Act of 1965 (20 U.S.C. 
        1058(f))).
            (3) Program.--The term ``program'' means the pilot program 
        established under section 2104(a).
            (4) Veterans service organization.--The term ``veterans 
        service organization'' means an organization recognized by the 
        Secretary of Veterans Affairs for the representation of 
        veterans under section 5902 of title 38, United States Code.

SEC. 2103. NATIONAL CENTER OF EXCELLENCE FOR THE 21\ST\ CENTURY 
              WORKFORCE.

    (a) In General.--The Secretary shall establish a nationwide 
advisory board, to be known as the ``National Center of Excellence for 
the 21\st\ Century Workforce Advisory Board'', to foster strategic 
vision, guidance, and networks for the energy industry.
    (b) Representatives.--The members of the Board shall consist of 
energy sector stakeholders, including--
            (1) representatives of relevant industries;
            (2) experts in labor, economics, and workforce development;
            (3) representatives of States and units of local 
        government;
            (4) representatives of elementary and secondary education 
        and postsecondary education; and
            (5) representatives of labor organizations.
    (c) Purposes.--The purposes of the Board are--
            (1) to support and develop training and science education 
        programs that--
                    (A) meet the industry and labor needs of the energy 
                and advanced manufacturing sectors; and
                    (B) provide opportunities for students to become 
                qualified for placement in traditional and clean energy 
                sector jobs;
            (2) to align apprenticeship programs and industry 
        certifications to further develop succession planning in the 
        energy sector;
            (3) to integrate educational standards to develop 
        foundational skills for elementary and secondary education and 
        postsecondary education to create a pipeline between education 
        and career; and
            (4) to support the replication of existing model energy 
        curricula, particularly in new and emerging technologies, that 
        lead to industry-wide credentials.

SEC. 2104. ENERGY WORKFORCE PILOT GRANT PROGRAM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in consultation with the Secretary of Labor 
and the Secretary of Education, shall establish a pilot program to 
award grants on a competitive basis to eligible entities for job 
training programs that lead to an industry-recognized credential.
    (b) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall be a public or nonprofit organization, or a 
consortium of such organizations, that--
            (1) includes an advisory board of proportional 
        participation, as determined by the Secretary, of relevant 
        organizations, including--
                    (A) relevant energy industry organizations, 
                including public and private employers;
                    (B) labor organizations; and
                    (C) elementary and secondary education and 
                postsecondary education organizations;
            (2) demonstrates experience in implementing and operating 
        job training and education programs;
            (3) demonstrates the ability to recruit and support 
        individuals who plan to work in the energy industry in the 
        successful completion of relevant job training and education 
        programs; and
            (4) provides students who complete the job training and 
        education program with an industry-recognized credential.
    (c) Applications.--Eligible entities desiring a grant under this 
section shall submit to the Secretary an application at such time, in 
such manner, and containing such information as the Secretary may 
require.
    (d) Priority.--In selecting eligible entities to receive grants 
under this section, the Secretary shall prioritize applicants that--
            (1) house the job training and education programs in--
                    (A) a community college or institution of higher 
                education that includes basic science and math 
                education in the curriculum of the community college, 
                institution of higher education; or
                    (B) an apprenticeship program registered with the 
                Department of Labor;
            (2) work with the Secretary of Defense or veterans service 
        organizations to transition members of the Armed Forces and 
        veterans to careers in the energy sector;
            (3) apply as a State or regional consortia to leverage best 
        practices already available in the State or region in which the 
        community college or institution of higher education is 
        located;
            (4) have a State-supported entity included in the 
        application;
            (5) include an apprenticeship program registered with the 
        Department of Labor as part of the job training and education 
        program;
            (6) develop a mentorship program for energy professionals 
        and elementary and secondary education students;
            (7) provide support services and career coaching;
            (8) provide introductory energy workforce development and 
        advanced manufacturing training; or
            (9) work with an Indian tribe (as defined in section 4 of 
        the Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)).
    (e) Additional Consideration.--In making grants under this section, 
the Secretary shall consider regional diversity.
    (f) Limitation on Applications.--An eligible entity may not submit, 
either individually or as part of a joint application, more than 1 
application for a grant under this section during any 1 fiscal year.
    (g) Limitations on Amount of Grant.--The amount of a grant for any 
1 year shall not exceed $1,000,000.
    (h) Cost Sharing.--
            (1) Federal share.--The Federal share of the cost of a job 
        training and education program carried out using a grant under 
        this section shall be not greater than 65 percent.
            (2) Non-federal share.--
                    (A) In general.--The non-Federal share of the cost 
                of a job training and education program carried out 
                using a grant under this section shall consist of not 
                less than 50 percent cash.
                    (B) Limitation.--Not greater than 50 percent of the 
                non-Federal contribution of the total cost of a job 
                training and education program carried out using a 
                grant under this section shall be in the form of in-
                kind contributions of goods or services fairly valued.
    (i) Reduction of Duplication.--Prior to submitting an application 
for a grant under this section, each applicant shall consult with the 
applicable agencies of the Federal Government and coordinate the 
proposed activities of the applicant with existing State and local 
programs.
    (j) Technical Assistance.--The Secretary shall provide technical 
assistance and capacity building to national and State energy 
partnerships, including the entities described in subsection (b)(1), to 
leverage the existing job training and education programs of the 
Department.
    (k) Report.--The Secretary shall submit to Congress and make 
publicly available on the website of the Department an annual report on 
the program established under this section, including a description 
of--
            (1) the entities receiving grants;
            (2) the activities carried out using the grants;
            (3) best practices used to leverage the investment of the 
        Federal Government;
            (4) the rate of employment for participants after 
        completing a job training and education program carried out 
        using a grant; and
            (5) an assessment of the results achieved by the program.
    (l) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2016 through 2019.

                    Subtitle I--Solar Installations

SEC. 2111. LOAN AND GRANT PROGRAM FOR SOLAR INSTALLATIONS IN LOW-INCOME 
              AND UNDERSERVED AREAS.

    (a) Definitions.--In this section:
            (1) Administrative expenses.--The term ``administrative 
        expenses'' has such meaning as may be established by the 
        Secretary.
            (2) Community solar facility.--The term ``community solar 
        facility'' means a community-based distributed photovoltaic 
        solar electricity generating facility that, as determined by 
        the Secretary--
                    (A) is owned by a subscriber organization;
                    (B) has a nameplate rating of 2 megawatts or less;
                    (C) is located in or near a community of 
                subscribers to whom the beneficial use of the 
                electricity generated by the facility belongs; and
                    (D) reserves not less than 25 percent of the 
                quantity of electricity generated by the facility for 
                low-income households that are subscribers to the 
                facility.
            (3) Grant-eligible household.--The term ``grant-eligible 
        household'' means a household the members of which--
                    (A) earn an income equal to 80 percent or less of 
                the applicable area median income, as defined for the 
                applicable year by the Secretary of Housing and Urban 
                Development; and
                    (B) reside in an owner-occupied home.
            (4) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation (as defined in, or established pursuant to, 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.)), that is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            (5) Loan-eligible entity.--The term ``loan-eligible 
        entity'' means--
                    (A) a nonprofit entity;
                    (B) a unit of State, territorial, or local 
                government;
                    (C) an Indian tribe;
                    (D) a rural community (as defined in section 343(a) 
                of the Consolidated Farm and Rural Development Act (7 
                U.S.C. 1991(a)); and
                    (E) any other national or regional entity that--
                            (i) deploys a safe, high-quality 
                        photovoltaic solar electricity generating 
                        facility for consumers under a model that 
                        maximizes energy savings to those consumers; 
                        and
                            (ii) has experience, as determined by the 
                        Secretary, installing solar systems using a job 
                        training or community volunteer-based 
                        installation model.
            (6) Low-income household.--The term ``low-income 
        household'' means a household with an income equal to 80 
        percent or less of the applicable area median income, as 
        defined for the applicable year by the Secretary of Housing and 
        Urban Development.
            (7) Multi-family affordable housing.--The term ``multi-
        family affordable housing'' means any federally subsidized 
        affordable housing complex in which at least 50 percent of the 
        units are reserved for low-income households.
            (8) Photovoltaic solar electricity generating facility.--
        The term ``photovoltaic solar electricity generating facility'' 
        means--
                    (A) a generator that creates electricity from light 
                photons; and
                    (B) the accompanying hardware enabling that 
                electricity to flow--
                            (i) onto the electric grid; or
                            (ii) into an energy storage device.
            (9) Subscriber.--The term ``subscriber'' means an 
        electricity consumer who--
                    (A) owns a subscription, or an equivalent unit or 
                share of the capacity or generation, of a community 
                solar facility;
                    (B) has identified 1 or more physical locations--
                            (i) to which the subscription will be 
                        attributed;
                            (ii) within the same electric utility 
                        service territory, or within the same 
                        geographical area, as the community solar 
                        facility, in accordance with applicable State 
                        and local law; and
                            (iii) that may change from time to time, 
                        subject to the condition that the physical 
                        location shall be within the geographical 
                        limits allowed for a subscriber of the 
                        applicable community solar facility; and
                    (C) confirms the status of the consumer as a grant-
                eligible household for each applicable fiscal year.
            (10) Subscription.--The term ``subscription'' means a share 
        in the capacity, or a proportional interest in the solar 
        electricity generation, of a community solar facility.
            (11) Underserved area.--The term ``underserved area'' means 
        a geographical area with low or no photovoltaic solar 
        deployment, as determined by the Secretary.
    (b) Establishment of Loan and Grant Program.--
            (1) In general.--The Secretary shall establish a program 
        under which the Secretary shall provide loans and grants to 
        grant-eligible households and loan-eligible entities for use in 
        accordance with this section.
            (2) Funding.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary shall make grants and 
                issue loans in accordance with this subsection.
                    (B) Loans.--Subject to subparagraph (D), not more 
                than 50 percent of funds made available under 
                subparagraph (A) for a fiscal year shall be used to 
                provide loans to loan-eligible entities for--
                            (i) community solar facilities; or
                            (ii) multi-family affordable housing solar 
                        installations.
                    (C) Grants.--After allocating amounts to carry out 
                subparagraph (B), the Secretary shall use the remaining 
                funds made available under subparagraph (A) for a 
                fiscal year to provide grants to grant-eligible 
                households--
                            (i) to pay the upfront costs of 
                        photovoltaic solar electricity generating 
                        facilities; or
                            (ii) for any other eligible use described 
                        in subsection (e).
                    (D) Increase in grant amount.--Notwithstanding 
                subparagraph (A), if the Secretary determines that more 
                than 50 percent of the amounts described in that 
                subparagraph are necessary during any of fiscal years 
                2016 through 2030 to provide grants to encourage 
                innovative financing and installation models to reach 
                underserved markets, the Secretary may use more than 50 
                percent of those amounts to provide those grants.
            (3) Goals and accountability.--
                    (A) In general.--In providing loans and grants 
                under this subsection, the Secretary shall take such 
                actions as may be necessary to ensure that--
                            (i) the assistance provided under this 
                        subsection is used to facilitate and encourage 
                        innovative solar installation and financing 
                        models, under which the recipients develop and 
                        install photovoltaic solar electricity 
                        generating facilities that provide significant 
                        savings to low-income households while 
                        providing job training or community engagement 
                        opportunities with respect to each solar system 
                        installed;
                            (ii) loan and grant recipients shall--
                                    (I) have installed not less than 
                                600 kilowatts of photovoltaic solar 
                                energy during the 2-year period 
                                preceding the date on which the loan or 
                                grant is provided to ensure consumer 
                                protection; or
                                    (II) until the goal described in 
                                subclause (I) is achieved, enter into 
                                partnership with an entity that--
                                            (aa) has not less than 2 
                                        years of experience deploying 
                                        solar photovoltaic systems for 
                                        low-income households in a 
                                        manner that maximizes the 
                                        savings benefits of solar 
                                        access; and
                                            (bb) was primarily 
                                        responsible for the 
                                        installation of at least 2 
                                        megawatts of solar energy 
                                        during the 2-year period 
                                        preceding the date on which the 
                                        loan or grant is provided;
                            (iii) the photovoltaic solar electricity 
                        generating facilities installed using 
                        assistance provided under this subsection are 
                        safe, high-quality systems that comply with 
                        local building and safety codes and standards;
                            (iv) the provision of assistance under this 
                        subsection establishes and fosters a 
                        partnership between the Federal Government and 
                        grant-eligible households and loan-eligible 
                        entities, resulting in efficient development of 
                        solar installations with--
                                    (I) minimal governmental 
                                intervention;
                                    (II) limited governmental 
                                regulation; and
                                    (III) significant involvement by 
                                nonprofit and private entities;
                            (v) solar projects installed using 
                        assistance provided under this subsection--
                                    (I) shall include job training; and
                                    (II) may include community 
                                participation in which job trainees and 
                                volunteers assist in the development of 
                                solar projects;
                            (vi) assistance provided under this 
                        subsection prioritizes development in--
                                    (I) areas with low photovoltaic 
                                penetration;
                                    (II) rural areas;
                                    (III) Indian tribal areas; and
                                    (IV) other underserved areas, 
                                including Alaskan Native and 
                                Appalachian communities;
                            (vii) solar systems are developed using 
                        assistance provided under this subsection on a 
                        geographically diverse basis among the grant-
                        eligible households and loan-eligible entities; 
                        and
                            (viii) to the maximum extent practicable, 
                        solar installation activities for which 
                        assistance is provided under this section 
                        leverage, or connect grant-eligible households 
                        to, federally or locally subsidized 
                        weatherization and energy efficiency efforts 
                        that meet or exceed local energy efficiency 
                        standards.
                    (B) Determination.--If, at any time, the Secretary 
                determines that the goals described in this paragraph 
                cannot be met by providing assistance in accordance 
                with this subsection, the Secretary shall immediately 
                submit to the appropriate committees of Congress a 
                written notice of that determination, including any 
                proposed changes necessary to achieve the goals under 
                this paragraph.
            (4) Community solar facilities.--
                    (A) In general.--A community solar facility may use 
                a loan provided under this subsection only to offset 
                the costs of generation and provision of solar energy 
                to low-income households that are subscribers of the 
                community solar facility.
                    (B) Transfer and assignment of subscriptions.--A 
                subscription to a community solar facility that 
                receives assistance under this subsection may be 
                transferred or assigned by the subscriber to--
                            (i) any subscriber organization; or
                            (ii) any individual or entity who qualifies 
                        to be a subscriber to that community solar 
                        facility.
                    (C) Treatment.--
                            (i) In general.--No owner, operator, or 
                        subscriber of a community solar facility that 
                        receives assistance under this subsection shall 
                        be subject to regulation by the Federal Energy 
                        Regulatory Commission solely as a result of an 
                        interest in the community solar facility.
                            (ii) Price of subscription.--The price paid 
                        for any subscription to a community solar 
                        facility shall not be subject to the regulation 
                        of any Federal department, agency, or 
                        commission.
    (c) National Competition.--
            (1) In general.--The Secretary shall select grant-eligible 
        households and loan-eligible entities to receive loans or 
        grants under this section through a nationwide competitive 
        process, to be established by the Secretary.
            (2) Applications.--To be eligible to receive a loan or 
        grant under this section, a grant-eligible household or loan-
        eligible entity shall submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require.
            (3) Requirements.--In selecting grant-eligible households 
        and loan-eligible entities to receive loans or grants under 
        this section, the Secretary shall, at a minimum--
                    (A) require that the grant-eligible household or 
                loan-eligible entity--
                            (i) enter into a grant or loan agreement, 
                        as applicable, under subsection (d); and
                            (ii) has obtained financial commitments (or 
                        has demonstrated the capacity to obtain 
                        financial commitments) necessary to comply with 
                        that agreement;
                    (B) ensure that loans and grants are provided, and 
                amounts are used, in a manner that results in 
                geographical diversity throughout the United States and 
                within States, territories, and Indian tribal land 
                among photovoltaic solar electricity generating 
                facilities installed using the assistance provided 
                under this section;
                    (C) to the maximum extent practicable, expand 
                photovoltaic solar energy availability to--
                            (i) geographical areas, throughout the 
                        United States and within States, territories, 
                        and Indian tribal land, with--
                                    (I) low photovoltaic solar 
                                penetration; or
                                    (II) areas with a higher cost 
                                burden with respect to the deployment 
                                or installation of photovoltaic solar 
                                electricity generating facilities;
                            (ii) rural communities;
                            (iii) Indian tribes; and
                            (iv) other underserved areas, including 
                        Appalachian and Alaska Native communities;
                    (D) take into account the warranty period and 
                quality of the applicable photovoltaic solar 
                electricity generating facility equipment and any 
                necessary interconnecting equipment; and
                    (E) ensure all calculations for estimated household 
                energy savings are based solely on electricity offsets 
                from the photovoltaic solar electricity generating 
                facilities.
    (d) Loan and Grant Agreements.--
            (1) In general.--As a condition of receiving a loan or 
        grant under this section, a grant-eligible household or loan-
        eligible entity shall enter into a loan or grant agreement, as 
        applicable, with the Secretary.
            (2) Requirements.--A loan or grant agreement under this 
        subsection shall--
                    (A) require the grant-eligible household or loan-
                eligible entity--
                            (i) to use the assistance provided under 
                        this section only in accordance with this 
                        section;
                            (ii) to install such number of solar 
                        systems with such defined capacity target 
                        (expressed in megawatts) as may be established 
                        by the Secretary , taking into consideration 
                        the costs associated with carrying out loan or 
                        grant obligations in the areas in which the 
                        solar systems will be developed;
                            (iii) to use the assistance in a manner 
                        that leverages other sources of funding (other 
                        than loans or grants under this section), 
                        including private or public funds, in 
                        developing the solar projects; and
                            (iv) to establish loan terms, if 
                        applicable, that maximize the benefit to the 
                        low-income households receiving solar energy 
                        from the loan-eligible entity;
                    (B) require the Secretary to rescind any amounts 
                provided to the grant-eligible household or loan-
                eligible entity that are not used during the 2-year 
                period beginning on the date on which the amounts are 
                initially distributed to the grant-eligible household 
                or loan-eligible entity, except in any case in which 
                the grant-eligible household or loan-eligible entity 
                has demonstrated to the satisfaction of the Secretary 
                that a longer period, not to exceed 3 years after the 
                date of initial distribution, is necessary to deliver 
                proposed services;
                    (C) for a loan provided under this section, 
                establish--
                            (i) an interest rate equal to the then-
                        current cost of funds to the Department of the 
                        Treasury for obligations of comparable maturity 
                        to the loan; and
                            (ii) a payout time that maximizes the 
                        savings to customers during the effective 
                        period of the agreement; and
                    (D) contain such other terms as the Secretary may 
                require to ensure compliance with the requirements of 
                this section.
    (e) Use.--A grant-eligible household or loan-eligible entity shall 
use a loan or grant provided under this section only for the following 
activities, for the purpose of developing new photovoltaic solar 
projects in the United States for low-income households and individuals 
who otherwise would likely be unable to afford or purchase photovoltaic 
solar systems:
            (1) Photovoltaic solar equipment and installation.--To pay 
        the costs of--
                    (A) solar equipment, including only photovoltaic 
                solar equipment and storage and all hardware or 
                software components relating to safely producing, 
                monitoring, and connecting the system to the electric 
                grid or onsite storage; and
                    (B) installation, including all direct labor 
                associated with installing the photovoltaic solar 
                equipment.
            (2) Job training.--To fund onsite job training and 
        community or volunteer engagement, including--
                    (A) only job training costs directly associated 
                with the solar projects funded under this section; and
                    (B) job training opportunities that may cover the 
                full range of the solar value chain, such as marketing 
                and outreach, customer acquisition, system design, and 
                installation positions.
            (3) Deployment support.--To fund entities that have a 
        demonstrated ability, as determined by the Secretary--
                    (A) to advise State and local entities regarding 
                low-income solar policy, regulatory, and program design 
                to continue and expand the work of the entities;
                    (B) to foster community outreach and education 
                regarding the benefits of photovoltaic solar energy for 
                low-income and disadvantaged communities; or
                    (C) to provide apprenticeship program opportunities 
                registered and approved by--
                            (i) the Office of Apprenticeship of the 
                        Department of Labor pursuant to part 29 of 
                        title 29, Code of Federal Regulations (or 
                        successor regulations); or
                            (ii) a State Apprenticeship Agency 
                        recognized by that Office.
            (4) Administration.--To pay the administrative expenses of 
        the grant-eligible household or loan-eligible entity, including 
        preproject feasibility efforts, in carrying out the duties of 
        the Secretary associated with delivering proposed services, 
        subject to the requirement that not more than 15 percent of the 
        total amount of the assistance provided to the grant-eligible 
        household or loan-eligible entity under this section may be 
        used for administrative expenses.
    (f) Compliance.--
            (1) Records and audits.--During the period beginning on the 
        date of initial distribution to a grant-eligible household or 
        loan-eligible entity of a loan or grant under this section and 
        ending on the termination date of the loan or grant under 
        subsection (g), the grant-eligible household or loan-eligible 
        entity shall maintain such records and adopt such 
        administrative practices as the Secretary may require to ensure 
        compliance with the requirements of this section and the 
        applicable loan or grant agreement.
            (2) Determination by secretary.--If the Secretary 
        determines that a grant-eligible household or loan-eligible 
        entity that receives a grant or loan under this section has 
        not, during the 2-year period beginning on the date of initial 
        distribution to the grant-eligible household or loan-eligible 
        entity of the assistance (or such longer period as is 
        established under subsection (d)(2)(B)), substantially 
        fulfilled the obligations of the grant-eligible household or 
        loan-eligible entity under the applicable loan or grant 
        agreement, the Secretary shall--
                    (A) rescind the balance of any funds distributed 
                to, but not used by, the grant-eligible household or 
                loan-eligible entity under this section; and
                    (B) use those amounts to provide other loans or 
                grants in accordance with this section.
    (g) Termination.--The Secretary shall terminate a loan or grant 
provided under this section on a determination that the total amount of 
the loan or grant (excluding any interest, fees, and other earnings of 
the loan or grant) has been--
            (1) fully expended by the grant-eligible household or loan-
        eligible entity; or
            (2) returned to the Secretary.
    (h) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall promulgate such regulations 
as the Secretary determines to be necessary to carry out this section, 
to take effect on the date of promulgation.
    (i) Funding.--There is authorized to be appropriated to the 
Secretary to carry out this section $200,000,000 for each of fiscal 
years 2016 through 2030, to remain available until expended.

           Subtitle J--Local Energy Supply and Resiliency Act

SEC. 2121. DEFINITIONS.

    In this subtitle:
            (1) Combined heat and power system.--The term ``combined 
        heat and power system'' means generation of electric energy and 
        heat in a single, integrated system that meets the efficiency 
        criteria in clauses (ii) and (iii) of section 48(c)(3)(A) of 
        the Internal Revenue Code of 1986, under which heat that is 
        conventionally rejected is recovered and used to meet thermal 
        energy requirements.
            (2) Demand response.--The term ``demand response'' means 
        changes in electric usage by electric utility customers from 
        the normal consumption patterns of the customers in response 
        to--
                    (A) changes in the price of electricity over time; 
                or
                    (B) incentive payments designed to induce lower 
                electricity use at times of high wholesale market 
                prices or when system reliability is jeopardized.
            (3) Distributed energy.--The term ``distributed energy'' 
        means energy sources and systems that--
                    (A) produce electric or thermal energy close to the 
                point of use using renewable energy resources or waste 
                thermal energy;
                    (B) generate electricity using a combined heat and 
                power system;
                    (C) distribute electricity in microgrids;
                    (D) store electric or thermal energy; or
                    (E) distribute thermal energy or transfer thermal 
                energy to building heating and cooling systems through 
                a district energy system.
            (4) District energy system.--The term ``district energy 
        system'' means a system that provides thermal energy to 
        buildings and other energy consumers from 1 or more plants to 
        individual buildings to provide space heating, air 
        conditioning, domestic hot water, industrial process energy, 
        and other end uses.
            (5) Islanding.--The term ``islanding'' means a distributed 
        generator or energy storage device continuing to power a 
        location in the absence of electric power from the primary 
        source.
            (6) Loan.--The term ``loan'' has the meaning given the term 
        ``direct loan'' in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (7) Microgrid.--The term ``microgrid'' means an integrated 
        energy system consisting of interconnected loads and 
        distributed energy resources, including generators and energy 
        storage devices, within clearly defined electrical boundaries 
        that--
                    (A) acts as a single controllable entity with 
                respect to the grid; and
                    (B) can connect and disconnect from the grid to 
                operate in both grid-connected mode and island mode.
            (8) Renewable energy source.--The term ``renewable energy 
        source'' includes--
                    (A) biomass;
                    (B) geothermal energy;
                    (C) hydropower;
                    (D) landfill gas;
                    (E) municipal solid waste;
                    (F) ocean (including tidal, wave, current, and 
                thermal) energy;
                    (G) organic waste;
                    (H) photosynthetic processes;
                    (I) photovoltaic energy;
                    (J) solar energy; and
                    (K) wind.
            (9) Renewable thermal energy.--The term ``renewable thermal 
        energy'' means heating or cooling energy derived from a 
        renewable energy resource.
            (10) Thermal energy.--The term ``thermal energy'' means--
                    (A) heating energy in the form of hot water or 
                steam that is used to provide space heating, domestic 
                hot water, or process heat; or
                    (B) cooling energy in the form of chilled water, 
                ice, or other media that is used to provide air 
                conditioning, or process cooling.
            (11) Waste thermal energy.--The term ``waste thermal 
        energy'' means energy that--
                    (A) is contained in--
                            (i) exhaust gases, exhaust steam, condenser 
                        water, jacket cooling heat, or lubricating oil 
                        in power generation systems;
                            (ii) exhaust heat, hot liquids, or flared 
                        gas from any industrial process;
                            (iii) waste gas or industrial tail gas that 
                        would otherwise be flared, incinerated, or 
                        vented;
                            (iv) a pressure drop in any gas, excluding 
                        any pressure drop to a condenser that 
                        subsequently vents the resulting heat;
                            (v) condenser water from chilled water or 
                        refrigeration plants; or
                            (vi) any other form of waste energy, as 
                        determined by the Secretary; and
                    (B)(i) in the case of an existing facility, is not 
                being used; or
                    (ii) in the case of a new facility, is not 
                conventionally used in comparable systems.

SEC. 2122. DISTRIBUTED ENERGY LOAN PROGRAM.

    (a) Loan Program.--
            (1) In general.--Subject to the provisions of this 
        subsection and subsections (b) and (c), the Secretary shall 
        establish a program to provide to eligible entities--
                    (A) loans for the deployment of distributed energy 
                systems in a specific project; and
                    (B) loans to provide funding for programs to 
                finance the deployment of multiple distributed energy 
                systems through a revolving loan fund, credit 
                enhancement program, or other financial assistance 
                program.
            (2) Eligibility.--Entities eligible to receive a loan under 
        paragraph (1) include--
                    (A) a State, territory, or possession of the United 
                States;
                    (B) a State energy office;
                    (C) a tribal organization (as defined in section 4 
                of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b));
                    (D) an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001)); and
                    (E) an electric utility, including--
                            (i) a rural electric cooperative;
                            (ii) a municipally owned electric utility; 
                        and
                            (iii) an investor-owned utility.
            (3) Selection requirements.--In selecting eligible entities 
        to receive loans under this section, the Secretary shall, to 
        the maximum extent practicable, ensure--
                    (A) regional diversity among eligible entities to 
                receive loans under this section, including 
                participation by rural States and small States; and
                    (B) that specific projects selected for loans--
                            (i) expand on the existing technology 
                        deployment program of the Department of Energy; 
                        and
                            (ii) are designed to achieve 1 or more of 
                        the objectives described in paragraph (4).
            (4) Objectives.--Each deployment selected for a loan under 
        paragraph (1) shall include 1 or more of the following 
        objectives:
                    (A) Improved security and resiliency of energy 
                supply in the event of disruptions caused by extreme 
                weather events, grid equipment or software failure, or 
                terrorist acts.
                    (B) Implementation of distributed energy in order 
                to increase use of local renewable energy resources and 
                waste thermal energy sources.
                    (C) Enhanced feasibility of microgrids, demand 
                response, or islanding;
                    (D) Enhanced management of peak loads for consumers 
                and the grid.
                    (E) Enhanced reliability in rural areas, including 
                high energy cost rural areas.
            (5) Restriction on use of funds.--Any eligible entity that 
        receives a loan under paragraph (1) may only use the loan to 
        fund programs relating to the deployment of distributed energy 
        systems.
    (b) Loan Terms and Conditions.--
            (1) Terms and conditions.--Notwithstanding any other 
        provision of law, in providing a loan under this section, the 
        Secretary shall provide the loan on such terms and conditions 
        as the Secretary determines, after consultation with the 
        Secretary of the Treasury, in accordance with this section.
            (2) Specific appropriation.--No loan shall be made unless 
        an appropriation for the full amount of the loan has been 
        specifically provided for that purpose.
            (3) Repayment.--No loan shall be made unless the Secretary 
        determines that there is reasonable prospect of repayment of 
        the principal and interest by the borrower of the loan.
            (4) Interest rate.--A loan provided under this section 
        shall bear interest at a fixed rate that is equal or 
        approximately equal, in the determination of the Secretary, to 
        the interest rate for Treasury securities of comparable 
        maturity.
            (5) Term.--The term of the loan shall require full 
        repayment over a period not to exceed the lesser of--
                    (A) 20 years; or
                    (B) 90 percent of the projected useful life of the 
                physical asset to be financed by the loan (as 
                determined by the Secretary).
            (6) Use of payments.--Payments of principal and interest on 
        the loan shall--
                    (A) be retained by the Secretary to support energy 
                research and development activities; and
                    (B) remain available until expended, subject to 
                such conditions as are contained in annual 
                appropriations Acts.
            (7) No penalty on early repayment.--The Secretary may not 
        assess any penalty for early repayment of a loan provided under 
        this section.
            (8) Return of unused portion.--In order to receive a loan 
        under this section, an eligible entity shall agree to return to 
        the general fund of the Treasury any portion of the loan amount 
        that is unused by the eligible entity within a reasonable 
        period of time after the date of the disbursement of the loan, 
        as determined by the Secretary.
            (9) Comparable wage rates.--Each laborer and mechanic 
        employed by a contractor or subcontractor in performance of 
        construction work financed, in whole or in part, by the loan 
        shall be paid wages at rates not less than the rates prevailing 
        on similar construction in the locality as determined by the 
        Secretary of Labor in accordance with subchapter IV of chapter 
        31 of title 40, United States Code.
    (c) Rules and Procedures; Disbursement of Loans.--
            (1) Rules and procedures.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary shall adopt 
        rules and procedures for carrying out the loan program under 
        subsection (a).
            (2) Disbursement of loans.--Not later than 1 year after the 
        date on which the rules and procedures under paragraph (1) are 
        established, the Secretary shall disburse the initial loans 
        provided under this section.
    (d) Reports.--Not later than 2 years after the date of receipt of 
the loan, and annually thereafter for the term of the loan, an eligible 
entity that receives a loan under this section shall submit to the 
Secretary a report describing the performance of each program and 
activity carried out using the loan, including itemized loan 
performance data.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

SEC. 2123. TECHNICAL ASSISTANCE AND GRANT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a technical 
        assistance and grant program (referred to in this section as 
        the ``program'')--
                    (A) to disseminate information and provide 
                technical assistance directly to eligible entities so 
                the eligible entities can identify, evaluate, plan, and 
                design distributed energy systems; and
                    (B) to make grants to eligible entities so that the 
                eligible entities may contract to obtain technical 
                assistance to identify, evaluate, plan, and design 
                distributed energy systems.
            (2) Technical assistance.--The technical assistance 
        described in paragraph (1) shall include assistance with 1 or 
        more of the following activities relating to distributed energy 
        systems:
                    (A) Identification of opportunities to use 
                distributed energy systems.
                    (B) Assessment of technical and economic 
                characteristics.
                    (C) Utility interconnection.
                    (D) Permitting and siting issues.
                    (E) Business planning and financial analysis.
                    (F) Engineering design.
            (3) Information dissemination.--The information 
        disseminated under paragraph (1)(A) shall include--
                    (A) information relating to the topics described in 
                paragraph (2), including case studies of successful 
                examples;
                    (B) computer software and databases for assessment, 
                design, and operation and maintenance of distributed 
                energy systems; and
                    (C) public databases that track the operation and 
                deployment of existing and planned distributed energy 
                systems.
    (b) Eligibility.--Any nonprofit or for-profit entity shall be 
eligible to receive technical assistance and grants under the program.
    (c) Applications.--
            (1) In general.--An eligible entity desiring technical 
        assistance or grants under the program shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Application process.--The Secretary shall seek 
        applications for technical assistance and grants under the 
        program--
                    (A) on a competitive basis; and
                    (B) on a periodic basis, but not less frequently 
                than once every 12 months.
            (3) Priorities.--In selecting eligible entities for 
        technical assistance and grants under the program, the 
        Secretary shall give priority to eligible entities with 
        projects that have the greatest potential for--
                    (A) facilitating the use of renewable energy 
                resources;
                    (B) strengthening the reliability and resiliency of 
                energy infrastructure to the impact of extreme weather 
                events, power grid failures, and interruptions in 
                supply of fossil fuels;
                    (C) improving the feasibility of microgrids or 
                islanding, particularly in rural areas, including high 
                energy cost rural areas;
                    (D) minimizing environmental impact, including 
                regulated air pollutants and greenhouse gas emissions; 
                and
                    (E) maximizing local job creation.
    (d) Grants.--On application by an eligible entity, the Secretary 
may award grants to the eligible entity to provide funds to cover not 
more than--
            (1) 100 percent of the costs of the initial assessment to 
        identify opportunities;
            (2) 75 percent of the cost of feasibility studies to assess 
        the potential for the implementation;
            (3) 60 percent of the cost of guidance on overcoming 
        barriers to implementation, including financial, contracting, 
        siting, and permitting issues; and
            (4) 45 percent of the cost of detailed engineering.
    (e) Rules and Procedures.--
            (1) Rules.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall adopt rules and 
        procedures for carrying out the program.
            (2) Grants.--Not later than 120 days after the date of 
        issuance of the rules and procedures for the program, the 
        Secretary shall issue grants under this subtitle.
    (f) Reports.--The Secretary shall submit to Congress and make 
available to the public--
            (1) not less frequently than once every 2 years, a report 
        describing the performance of the program under this section, 
        including a synthesis and analysis of the information provided 
        in the reports submitted to the Secretary under section 
        2122(d); and
            (2) on termination of the program under this section, an 
        assessment of the success of, and education provided by, the 
        measures carried out by eligible entities during the term of 
        the program.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000 for the period of 
fiscal years 2016 through 2020, to remain available until expended.

              Subtitle K--Geothermal Energy Opportunities

SEC. 2131. NATIONAL GOALS FOR PRODUCTION AND SITE IDENTIFICATION.

    It is the sense of Congress that, not later than 10 years after the 
date of enactment of this Act--
            (1) the Secretary of the Interior should seek to have 
        approved more than 15,000 megawatts of new geothermal energy 
        capacity on public land across a geographically diverse set of 
        States using the full range of available technologies; and
            (2) the Director of the Geological Survey and the Secretary 
        of Energy should identify sites capable of producing a total of 
        50,000 megawatts of geothermal power, using the full range of 
        available technologies.

SEC. 2132. PRIORITY AREAS FOR DEVELOPMENT ON FEDERAL LAND.

    The Director of the Bureau of Land Management, in consultation with 
other appropriate Federal officials, shall--
            (1) identify high-priority areas for new geothermal 
        development; and
            (2) take any actions the Director determines necessary to 
        facilitate that development, consistent with applicable laws.

SEC. 2133. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND 
              GAS LEASES.

    Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1003(b)) is amended by adding at the end the following:
            ``(4) Land subject to oil and gas lease.--Land under an oil 
        and gas lease issued pursuant to the Mineral Leasing Act (30 
        U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired 
        Lands (30 U.S.C. 351 et seq.) that is subject to an approved 
        application for permit to drill and from which oil and gas 
        production is occurring may be available for noncompetitive 
        leasing under this section to the holder of the oil and gas 
        lease--
                    ``(A) on a determination that--
                            ``(i) geothermal energy will be produced 
                        from a well producing or capable of producing 
                        oil and gas; and
                            ``(ii) national energy security will be 
                        improved by the issuance of such a lease; and
                    ``(B) to provide for the coproduction of geothermal 
                energy with oil and gas.''.

SEC. 2134. COST-SHARED EXPLORATION.

    (a) In General.--To promote the goals described in section 2131, 
the Secretary may conduct a federally funded program of cost-shared 
drilling with industry partners--
            (1) to explore and document new geothermal resources in the 
        United States; and
            (2) to develop improved tools and methods for geothermal 
        resource identification and extraction, with the goal of 
        achieving material reductions in the cost of exploration with a 
        corresponding increase in the likelihood of drilling success.
    (b) Grants.--
            (1) In general.--To carry out the program described in 
        subsection (a), the Secretary may award cost-share grants on a 
        competitive and merit basis to eligible applicants to support 
        exploration drilling and related activities.
            (2) Project criteria.--In selecting applicants to receive 
        grants under paragraph (1), the Secretary shall--
                    (A) give preference to applicants proposing 
                projects located in a variety of geological and 
                geographical settings with previously unexplored, 
                underexplored, or unproven geothermal resources; and
                    (B) consider--
                            (i) the potential that the unproven 
                        geothermal resources would be explored and 
                        developed under the proposed project;
                            (ii) the expertise and experience of an 
                        applicant in developing geothermal resources; 
                        and
                            (iii) the contribution the proposed project 
                        would make toward meeting the goals described 
                        in section 2131.
    (c) Data Sharing.--
            (1) In general.--Data from all exploratory wells that are 
        carried out under the program described in subsection (a) shall 
        be provided to the Secretary and the Secretary of the Interior 
        for--
                    (A) use in mapping national geothermal resources; 
                and
                    (B) other purposes, including--
                            (i) subsurface geological data;
                            (ii) metadata;
                            (iii) borehole temperature data; and
                            (iv) inclusion in the National Geothermal 
                        Data System of the Department.
            (2) Sharing of confidential data.--Not later than 2 years 
        after the date of enactment of this Act, confidential data from 
        all exploratory wells that are carried out under the program 
        described in subsection (a) shall be provided to the Secretary 
        and the Secretary of the Interior for the purposes described in 
        subparagraphs (A) and (B) of paragraph (1), to be available for 
        a period of time to be determined by the Secretary and the 
        Secretary of the Interior.

SEC. 2135. USE OF GEOTHERMAL LEASE REVENUES.

    (a) Amounts Deposited.--Notwithstanding any other provision of law, 
beginning in the first full fiscal year after the date of enactment of 
this Act, any amounts received by the United States as rentals, 
royalties, and other payments required under leases pursuant to the 
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) (excluding funds 
required to be paid to State and county governments) and from new 
geothermal leases issued after the date of enactment of this Act shall 
be deposited into a separate account in the Treasury.
    (b) Use of Deposits.--Amounts deposited under subsection (a) shall 
be available to the Secretary for expenditure, without further 
appropriation or fiscal year limitation, to carry out section 2134.
    (c) Transfer of Funds.--To promote the goals described in section 
2131, the Secretary may authorize the expenditure or transfer of any 
funds that are necessary to other cooperating Federal agencies.

SEC. 2136. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF 
              GEOTHERMAL RESOURCES.

    Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1003(b)) (as amended by section 2133) is amended by adding at the end 
the following:
            ``(5) Adjoining land.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Fair market value per acre.--The term 
                        `fair market value per acre' means a dollar 
                        amount per acre that--
                                    ``(I) except as provided in this 
                                clause, shall be equal to the market 
                                value per acre (taking into account the 
                                determination under subparagraph 
                                (B)(iii) regarding a valid discovery on 
                                the adjoining land), as determined by 
                                the Secretary under regulations issued 
                                under this paragraph;
                                    ``(II) shall be determined by the 
                                Secretary with respect to a lease under 
                                this paragraph, by not later than the 
                                end of the 180-day period beginning on 
                                the date the Secretary receives an 
                                application for the lease; and
                                    ``(III) shall be not less than the 
                                greater of--
                                            ``(aa) 4 times the median 
                                        amount paid per acre for all 
                                        land leased under this Act 
                                        during the preceding year; and
                                            ``(bb) $50.
                            ``(ii) Industry standards.--The term 
                        `industry standards' means the standards by 
                        which a qualified geothermal professional 
                        assesses whether downhole or flowing 
                        temperature measurements with indications of 
                        permeability are sufficient to produce energy 
                        from geothermal resources, as determined 
                        through flow or injection testing or 
                        measurement of lost circulation while drilling.
                            ``(iii) Qualified federal land.--The term 
                        `qualified Federal land' means land that is 
                        otherwise available for leasing under this Act.
                            ``(iv) Qualified geothermal professional.--
                        The term `qualified geothermal professional' 
                        means an individual who is an engineer or 
                        geoscientist in good professional standing with 
                        at least 5 years of experience in geothermal 
                        exploration, development, or project 
                        assessment.
                            ``(v) Qualified lessee.--The term 
                        `qualified lessee' means a person that is 
                        eligible to hold a geothermal lease under this 
                        Act (including applicable regulations).
                            ``(vi) Valid discovery.--The term `valid 
                        discovery' means a discovery of a geothermal 
                        resource by a new or existing slim hole or 
                        production well, that exhibits downhole or 
                        flowing temperature measurements with 
                        indications of permeability that are sufficient 
                        to meet industry standards.
                    ``(B) Authority.--An area of qualified Federal land 
                that adjoins other land for which a qualified lessee 
                holds a legal right to develop geothermal resources may 
                be available for a noncompetitive lease under this 
                section to the qualified lessee at the fair market 
                value per acre, if--
                            ``(i) the area of qualified Federal land--
                                    ``(I) consists of not less than 1 
                                acre and not more than 640 acres; and
                                    ``(II) is not already leased under 
                                this Act or nominated to be leased 
                                under subsection (a);
                            ``(ii) the qualified lessee has not 
                        previously received a noncompetitive lease 
                        under this paragraph in connection with the 
                        valid discovery for which data has been 
                        submitted under clause (iii)(I); and
                            ``(iii) sufficient geological and other 
                        technical data prepared by a qualified 
                        geothermal professional has been submitted by 
                        the qualified lessee to the applicable Federal 
                        land management agency that would lead 
                        individuals who are experienced in the subject 
                        matter to believe that--
                                    ``(I) there is a valid discovery of 
                                geothermal resources on the land for 
                                which the qualified lessee holds the 
                                legal right to develop geothermal 
                                resources; and
                                    ``(II) that thermal feature extends 
                                into the adjoining areas.
                    ``(C) Determination of fair market value.--
                            ``(i) In general.--The Secretary shall--
                                    ``(I) publish a notice of any 
                                request to lease land under this 
                                paragraph;
                                    ``(II) determine fair market value 
                                for purposes of this paragraph in 
                                accordance with procedures for making 
                                those determinations that are 
                                established by regulations issued by 
                                the Secretary;
                                    ``(III) provide to a qualified 
                                lessee and publish, with an opportunity 
                                for public comment for a period of 30 
                                days, any proposed determination under 
                                this subparagraph of the fair market 
                                value of an area that the qualified 
                                lessee seeks to lease under this 
                                paragraph; and
                                    ``(IV) provide to the qualified 
                                lessee and any adversely affected party 
                                the opportunity to appeal the final 
                                determination of fair market value in 
                                an administrative proceeding before the 
                                applicable Federal land management 
                                agency, in accordance with applicable 
                                law (including regulations).
                            ``(ii) Limitation on nomination.--After 
                        publication of a notice of request to lease 
                        land under this paragraph, the Secretary may 
                        not accept under subsection (a) any nomination 
                        of the land for leasing unless the request has 
                        been denied or withdrawn.
                            ``(iii) Annual rental.--For purposes of 
                        section 5(a)(3), a lease awarded under this 
                        paragraph shall be considered a lease awarded 
                        in a competitive lease sale.
                    ``(D) Regulations.--Not later than 270 days after 
                the date of enactment of this paragraph, the Secretary 
                shall issue regulations to carry out this paragraph.''.

SEC. 2137. LARGE-SCALE GEOTHERMAL ENERGY.

    Title VI of the Energy Independence and Security Act of 2007 is 
amended by inserting after section 616 (42 U.S.C. 17195) the following:

``SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.

    ``(a) Findings.--Congress finds that--
            ``(1) the Geothermal Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department has 
        included a focus on direct use of geothermal energy in the low-
        temperature geothermal energy subprogram (including in the 
        development of a research and development plan for the 
        program);
            ``(2) the Building Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department--
                    ``(A) is focused on the energy demand and energy 
                efficiency of buildings; and
                    ``(B) includes geothermal heat pumps as a component 
                technology in the residential and commercial deployment 
                activities of the program; and
            ``(3) geothermal heat pumps and direct use of geothermal 
        energy, especially in large-scale applications, can make a 
        significant contribution to the use of renewable energy but are 
        underrepresented in research, development, demonstration, and 
        commercialization.
    ``(b) Purposes.--The purposes of this section are--
            ``(1) to improve the components, processes, and systems 
        used for geothermal heat pumps and the direct use of geothermal 
        energy; and
            ``(2) to increase the energy efficiency, lower the cost, 
        increase the use, and improve and demonstrate the applicability 
        of geothermal heat pumps to, and the direct use of geothermal 
        energy in, large buildings, commercial districts, residential 
        communities, and large municipal, agricultural, or industrial 
        projects.
    ``(c) Definitions.--In this section:
            ``(1) Direct use of geothermal energy.--The term `direct 
        use of geothermal energy' means systems that use water that is 
        at a temperature between approximately 38 degrees Celsius and 
        149 degrees Celsius directly or through a heat exchanger to 
        provide--
                    ``(A) heating to buildings; or
                    ``(B) heat required for industrial processes, 
                agriculture, aquaculture, and other facilities.
            ``(2) Geothermal heat pump.--The term `geothermal heat 
        pump' means a system that provides heating and cooling by 
        exchanging heat from shallow ground or surface water using--
                    ``(A) a closed loop system, which transfers heat by 
                way of buried or immersed pipes that contain a mix of 
                water and working fluid; or
                    ``(B) an open loop system, which circulates ground 
                or surface water directly into the building and returns 
                the water to the same aquifer or surface water source.
            ``(3) Large-scale application.--The term `large-scale 
        application' means an application for space or process heating 
        or cooling for large entities with a name-plate capacity, 
        expected resource, or rating of 10 or more megawatts, such as a 
        large building, commercial district, residential community, or 
        a large municipal, agricultural, or industrial project.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Energy, acting through the Assistant Secretary for Energy 
        Efficiency and Renewable Energy.
    ``(d) Program.--
            ``(1) In general.--The Secretary shall establish a program 
        of research, development, and demonstration for geothermal heat 
        pumps and the direct use of geothermal energy.
            ``(2) Areas.--The program may include research, 
        development, demonstration, and commercial application of--
                    ``(A) geothermal ground loop efficiency 
                improvements through more efficient heat transfer 
                fluids;
                    ``(B) geothermal ground loop efficiency 
                improvements through more efficient thermal grouts for 
                wells and trenches;
                    ``(C) geothermal ground loop installation cost 
                reduction through--
                            ``(i) improved drilling methods;
                            ``(ii) improvements in drilling equipment;
                            ``(iii) improvements in design methodology 
                        and energy analysis procedures; and
                            ``(iv) improved methods for determination 
                        of ground thermal properties and ground 
                        temperatures;
                    ``(D) installing geothermal ground loops near the 
                foundation walls of new construction to take advantage 
                of existing structures;
                    ``(E) using gray or black wastewater as a method of 
                heat exchange;
                    ``(F) improving geothermal heat pump system 
                economics through integration of geothermal systems 
                with other building systems, including providing hot 
                and cold water and rejecting or circulating industrial 
                process heat through refrigeration heat rejection and 
                waste heat recovery;
                    ``(G) advanced geothermal systems using variable 
                pumping rates to increase efficiency;
                    ``(H) geothermal heat pump efficiency improvements;
                    ``(I) use of hot water found in mines and mine 
                shafts and other surface waters as the heat exchange 
                medium;
                    ``(J) heating of districts, neighborhoods, 
                communities, large commercial or public buildings 
                (including office, retail, educational, government, and 
                institutional buildings and multifamily residential 
                buildings and campuses), and industrial and 
                manufacturing facilities;
                    ``(K) geothermal system integration with solar 
                thermal water heating or cool roofs and solar-
                regenerated desiccants to balance loads and use 
                building hot water to store geothermal energy;
                    ``(L) use of hot water coproduced from oil and gas 
                recovery;
                    ``(M) use of water sources at a temperature of less 
                than 150 degrees Celsius for direct use;
                    ``(N) system integration of direct use with 
                geothermal electricity production; and
                    ``(O) coproduction of heat and power, including on-
                site use.
            ``(3) Environmental impacts.--In carrying out the program, 
        the Secretary shall identify and mitigate potential 
        environmental impacts in accordance with section 614(c).
    ``(e) Grants.--
            ``(1) In general.--The Secretary shall make grants 
        available to State and local governments, institutions of 
        higher education, nonprofit entities, utilities, and for-profit 
        companies (including manufacturers of heat-pump and direct-use 
        components and systems) to promote the development of 
        geothermal heat pumps and the direct use of geothermal energy.
            ``(2) Priority.--In making grants under this subsection, 
        the Secretary shall give priority to proposals that apply to 
        large buildings (including office, retail, educational, 
        government, institutional, and multifamily residential 
        buildings and campuses and industrial and manufacturing 
        facilities), commercial districts, and residential communities.
            ``(3) National solicitation.--Not later than 180 days after 
        the date of enactment of this section, the Secretary shall 
        conduct a national solicitation for applications for grants 
        under this section.
    ``(f) Reports.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section and annually thereafter, the 
        Secretary shall submit to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Science, Space, 
        and Technology of the House of Representatives a report on 
        progress made and results obtained under this section to 
        develop geothermal heat pumps and direct use of geothermal 
        energy.
            ``(2) Areas.--Each of the reports required under this 
        subsection shall include--
                    ``(A) an analysis of progress made in each of the 
                areas described in subsection (d)(2); and
                    ``(B)(i) a description of any relevant 
                recommendations made during a review of the program; 
                and
                    ``(ii) any plans to address the recommendations 
                under clause (i).''.

SEC. 2138. REPORT TO CONGRESS.

    Not later than 3 years after the date of enactment of this Act and 
not less frequently than once every 5 years thereafter, the Secretary 
and the Secretary of the Interior shall submit to the appropriate 
committees of Congress a report describing the progress made towards 
achieving the goals described in section 2131.

SEC. 2139. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle 
such sums as are necessary.

               Subtitle L--Clean Coal Technology Research

SEC. 2141. FOSSIL ENERGY.

    Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16291(a)) is amended by adding at the end the following:
            ``(8) Improving the conversion, use, and storage of carbon 
        dioxide produced from fossil fuels.''.

                    Subtitle M--Long-term Contracts

SEC. 2151. CONTRACTS FOR FEDERAL PURCHASES OF ENERGY.

    Part 3 of title V of the National Energy Conservation Policy Act is 
amended by adding after section 553 (42 U.S.C. 8259b) the following:

``SEC. 554. LONG-TERM CONTRACTS FOR ENERGY.

    ``(a) In General.--Notwithstanding section 501(b)(1)(B) of title 
40, United States Code, a contract for the acquisition of renewable 
energy or energy from cogeneration facilities for the Federal 
Government may be made for a period not to exceed 30 years.
    ``(b) Standardized Energy Purchase Agreement.--Not later than 90 
days after the date of enactment of this section, the Secretary, acting 
through the Federal Energy Management Program, shall publish a 
standardized energy purchase agreement setting forth commercial terms 
and conditions that agencies may use to acquire renewable energy or 
energy from cogeneration facilities.
    ``(c) Technical Assistance.--The Secretary shall provide technical 
assistance to assist agencies in implementing this section.''.

        Subtitle N--Promoting Renewable Energy With Shared Solar

SEC. 2161. PROVISION OF INTERCONNECTION SERVICE AND NET BILLING SERVICE 
              FOR COMMUNITY SOLAR FACILITIES.

    (a) In General.--Section 111(d) of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) (as amended by section 
2020(a)) is amended by adding at the end the following:
            ``(21) Community solar facilities.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Community solar facility.--The term 
                        `community solar facility' means a solar 
                        photovoltaic system that--
                                    ``(I) allocates electricity to 
                                multiple individual electric consumers 
                                of an electric utility;
                                    ``(II) has a nameplate rating of 2 
                                megawatts or less; and
                                    ``(III) is--
                                            ``(aa) owned by the 
                                        electric utility, jointly 
                                        owned, or third-party-owned;
                                            ``(bb) connected to a local 
                                        distribution facility of the 
                                        electric utility; and
                                            ``(cc) located on or off 
                                        the property of a consumer of 
                                        the electricity.
                            ``(ii) Interconnection service.--The term 
                        `interconnection service' means a service 
                        provided by an electric utility to an electric 
                        consumer, in accordance with the standards 
                        described in paragraph (15), through which a 
                        community solar facility is connected to an 
                        applicable local distribution facility.
                            ``(iii) Net billing service.--The term `net 
                        billing service' means a service provided by an 
                        electric utility to an electric consumer 
                        through which electric energy generated for 
                        that electric consumer from a community solar 
                        facility may be used to offset electric energy 
                        provided by the electric utility to the 
                        electric consumer during the applicable billing 
                        period.
                    ``(B) Requirement.--On receipt of a request of an 
                electric consumer served by the electric utility, each 
                electric utility shall make available to the electric 
                consumer interconnection service and net billing 
                service for a community solar facility.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as amended 
        by section 2020(b)(1)) is amended by adding at the end the 
        following:
            ``(8)(A) Not later than 1 year after the date of enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which the State has 
        ratemaking authority) and each nonregulated utility shall 
        commence consideration under section 111, or set a hearing date 
        for consideration, with respect to the standard established by 
        paragraph (21) of section 111(d).
            ``(B) Not later than 2 years after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which the State has ratemaking 
        authority), and each nonregulated electric utility shall 
        complete the consideration and make the determination under 
        section 111 with respect to the standard established by 
        paragraph (21) of section 111(d).''.
            (2) Failure to comply.--
                    (A) In general.--Section 112(c) of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2622(c)) (as amended by section 2020(b)(2)) is 
                amended--
                            (i) by striking ``such paragraph (14)'' and 
                        all that follows through ``paragraphs (16)'' 
                        and inserting ``such paragraph (14). In the 
                        case of the standard established by paragraph 
                        (15) of section 111(d), the reference contained 
                        in this subsection to the date of enactment of 
                        this Act shall be deemed to be a reference to 
                        the date of enactment of that paragraph (15). 
                        In the case of the standards established by 
                        paragraphs (16)''; and
                            (ii) by adding at the end the following: 
                        ``In the case of the standard established by 
                        paragraph (21) of section 111(d), the reference 
                        contained in this subsection to the date of 
                        enactment of this Act shall be deemed to be a 
                        reference to the date of enactment of that 
                        paragraph (21).''.
                    (B) Technical correction.--
                            (i) In general.--Section 1254(b) of the 
                        Energy Policy Act of 2005 (Public Law 109-58; 
                        119 Stat. 971) is amended by striking paragraph 
                        (2).
                            (ii) Treatment.--The amendment made by 
                        paragraph (2) of section 1254(b) of the Energy 
                        Policy Act of 2005 (Public Law 109-58; 119 
                        Stat. 971) (as in effect on the day before the 
                        date of enactment of this Act) is void, and 
                        section 112(d) of the Public Utility Regulatory 
                        Policies Act of 1978 (16 U.S.C. 2622(d)) shall 
                        be in effect as if those amendments had not 
                        been enacted.
            (3) Prior state actions.--
                    (A) In general.--Section 112 of the Public Utility 
                Regulatory Policies Act of 1978 (16 U.S.C. 2622) is 
                amended by adding at the end the following:
    ``(g) Prior State Actions.--Subsections (b) and (c) shall not apply 
to the standard established by paragraph (21) of section 111(d) in the 
case of any electric utility in a State if, before the date of 
enactment of this subsection--
            ``(1) the State has implemented for the electric utility 
        the standard (or a comparable standard);
            ``(2) the State regulatory authority for the State or the 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard (or a 
        comparable standard) for the electric utility; or
            ``(3) the State legislature has voted on the implementation 
        of the standard (or a comparable standard) for the electric 
        utility.''.
                    (B) Cross-reference.--Section 124 of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2634) is amended by adding at the end the following: 
                ``In the case of the standard established by paragraph 
                (21) of section 111(d), the reference contained in this 
                subsection to the date of enactment of this Act shall 
                be deemed to be a reference to the date of enactment of 
                that paragraph (21).''.

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

SEC. 2171. REPORT.

    (a) In General.--Not later than 1 year before the date on which the 
credits under sections 45L, 45S, 45T, 48E, 179D, and 179F of the 
Internal Revenue Code of 1986 expire, the Secretary, in consultation 
with the Secretary of Treasury, shall submit to the Committees on 
Finance and Energy of the Senate and the Committees on Natural 
Resources, Ways and Means, and Energy and Commerce of the House of 
Representative a report on whether continuation of the credits under 
sections 45L, 45S, 45T, 48E, 179D, and 179F of the Internal Revenue 
Code of 1986 remains necessary to achieve the carbon savings goal 
described in section 3001(1).
    (b) Requirements.--In preparing the report required under 
subsection (a), the Secretary shall consider--
            (1) regional differences in energy prices;
            (2) the innovation and diffusion of new technologies; and
            (3) the interaction between the credits and other Federal 
        and State incentives for renewable and conventional energy 
        sources.

                       Subtitle P--Loan Programs

SEC. 2181. TERMS AND CONDITIONS FOR INCENTIVES FOR INNOVATIVE 
              TECHNOLOGIES.

    (a) Borrower Payment of Subsidy Cost.--
            (1) In general.--Section 1702 of the Energy Policy Act of 
        2005 (42 U.S.C. 16512) is amended by adding at the end the 
        following:
    ``(l) Borrower Payment of Subsidy Cost.--
            ``(1) In general.--In addition to the requirement in 
        subsection (b)(1), no guarantee shall be made unless the 
        Secretary has received from the borrower not less than 25 
        percent of the cost of the guarantee.
            ``(2) Estimate.--The Secretary shall provide to the 
        borrower, as soon as practicable, an estimate or range of the 
        cost of the guarantee under paragraph (1).''.
            (2) Conforming amendment.--Section 1702(b) of the Energy 
        Policy Act of 2005 (42 U.S.C. 16512(b)) is amended--
                    (A) by striking ``(1) In general.--No guarantee'' 
                and inserting the following: ``Subject to subsection 
                (l), no guarantee'';
                    (B) by redesignating subparagraphs (A), (B), and 
                (C) as paragraphs (1), (2), and (3), respectively, and 
                indenting appropriately; and
                    (C) in paragraph (3) (as so redesignated)--
                            (i) by striking ``subparagraph (A)'' and 
                        inserting ``paragraph (1)''; and
                            (ii) by striking ``subparagraph (B)'' and 
                        inserting ``paragraph (2)''.
    (b) Prohibition on Subordination of Debt.--Section 1702(d)(3) of 
the Energy Policy Act of 2005 (42 U.S.C. 16512(d)(3)) is amended by 
striking ``is not subordinate'' and inserting ``(including any 
reorganization, restructuring, or termination of the obligation) shall 
not at any time be subordinate''.
    (c) Loan Program Transparency.--Section 1703 of the Energy Policy 
Act of 2005 (42 U.S.C. 16513) is amended by adding at the end the 
following:
    ``(f) Loan Status.--
            ``(1) Request.--If the Secretary does not make a final 
        decision on an application for a loan guarantee under this 
        section by the date that is 270 days after receipt of the 
        application by the Secretary, on that date and every 90 days 
        thereafter until the final decision is made, the applicant may 
        request that the Secretary provide to the applicant a 
        description of the status of the application.
            ``(2) Response.--Not later than 10 days after receiving a 
        request from an applicant under paragraph (1), the Secretary 
        shall provide to the applicant a response that includes--
                    ``(A) a summary of any factors that are delaying a 
                final decision on the application; and
                    ``(B) an estimate of when review of the application 
                will be completed.''.
    (d) Temporary Program for Rapid Deployment of Renewable Energy and 
Electric Power Transmission Projects.--
            (1) Repeal.--Section 1705 of the Energy Policy Act of 2005 
        (42 U.S.C. 16516) is repealed.
            (2) Rescission.--There is rescinded the unobligated balance 
        of amounts made available to carry out the loan guarantee 
        program established under section 1705 of the Energy Policy Act 
        of 2005 (42 U.S.C. 16516) (before the amendment made by 
        paragraph (1)).
            (3) Management.--The Secretary shall ensure rigorous 
        continued management and oversight of all outstanding loans 
        guaranteed under the program described in subsection (b) until 
        those loans have been repaid in full.

SEC. 2182. STATE LOAN ELIGIBILITY.

    (a) Definitions.--Section 1701 of the Energy Policy Act of 2005 (42 
U.S.C. 16511) is amended by adding at the end the following:
            ``(6) State.--The term `State' has the meaning given the 
        term in section 202 of the Energy Conservation and Production 
        Act (42 U.S.C. 6802).
            ``(7) State energy financing institution.--
                    ``(A) In general.--The term `State energy financing 
                institution' means a quasi-independent entity or an 
                entity within a State agency or financing authority 
                established by a State--
                            ``(i) to provide financing support or 
                        credit enhancements, including loan guarantees 
                        and loan loss reserves, for eligible projects; 
                        and
                            ``(ii) to create liquid markets for 
                        eligible projects, including warehousing and 
                        securitization, or take other steps to reduce 
                        financial barriers to the deployment of 
                        existing and new eligible projects.
                    ``(B) Inclusion.--The term `State energy financing 
                institution' includes an entity or organization 
                established to achieve the purposes described in 
                clauses (i) and (ii) of subparagraph (A) by an Indian 
                tribal entity or an Alaska Native Corporation.''.
    (b) Terms and Conditions.--Section 1702 of the Energy Policy Act of 
2005 (42 U.S.C. 16512) (as amended by section 4001(a)(1)) is amended--
            (1) in subsection (a), by inserting ``or to a State energy 
        financing institution'' after ``for projects''; and
            (2) by adding at the end the following:
    ``(m) State Energy Financing Institutions.--
            ``(1) Eligibility.--To be eligible for a guarantee under 
        this title, a State energy financing institution--
                    ``(A) shall meet the requirements of section 
                1703(a)(1); and
                    ``(B) shall not be required to meet the 
                requirements of section 1703(a)(2).
            ``(2) Partnerships authorized.--In carrying out a project 
        receiving a loan guarantee under this title, State energy 
        financing institutions may enter into partnerships with private 
        entities, tribal entities, and Alaska Native corporations.''.

                 TITLE III--CUTTING POLLUTION AND WASTE

                    Subtitle A--Carbon Savings Goal

SEC. 3001. POLICY OF UNITED STATES ON ADDRESSING CLIMATE CHANGE.

    It is the policy of the United States--
            (1) to use appropriate authorities and available 
        technologies to reduce the greenhouse gas emissions of the 
        United States by not less than 2 percent per year on average 
        through 2025;
            (2) to make the investments necessary to improve the 
        resilience of vulnerable communities and infrastructure in the 
        United States to the impacts of climate change that can no 
        longer be prevented; and
            (3) to exercise the international leadership position of 
        the United States to address climate change by securing 
        commitments from other major carbon-emitting countries to meet 
        their own carbon pollution reduction targets in a transparent 
        and verifiable manner.

                 Subtitle B--American Energy Efficiency

SEC. 3011. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY 
              AND NATURAL GAS SUPPLIERS.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
the following:

``SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL 
              ELECTRICITY AND NATURAL GAS SUPPLIERS.

    ``(a) Definitions.--In this section:
            ``(1) Base quantity.--
                    ``(A) In general.--The term `base quantity', with 
                respect to a retail electricity supplier or retail 
                natural gas supplier, means, for each calendar year for 
                which a performance standard is established under 
                subsection (c), the average annual quantity of 
                electricity or natural gas delivered by the retail 
                electricity supplier or retail natural gas supplier to 
                retail customers during the 3 calendar years 
                immediately preceding the first year that compliance is 
                required under subsection (c)(1).
                    ``(B) Exclusion.--The term `base quantity', with 
                respect to a retail natural gas supplier, does not 
                include natural gas delivered for purposes of 
                electricity generation.
            ``(2) Customer facility savings.--The term `customer 
        facility savings' means a reduction in end-use electricity or 
        natural gas consumption (including waste heat energy savings) 
        at a facility of an end-use consumer of electricity or natural 
        gas served by a retail electricity supplier or natural gas 
        supplier, as compared to--
                    ``(A) in the case of a new facility, consumption at 
                a reference facility of average efficiency;
                    ``(B) in the case of an existing facility, 
                consumption at the facility during a base period of not 
                less than 1 year;
                    ``(C) in the case of new equipment that replaces 
                existing equipment at the end of the useful life of the 
                existing equipment, consumption by new equipment of 
                average efficiency of the same equipment type, except 
                that customer savings under this subparagraph shall not 
                be counted towards customer savings under subparagraph 
                (A) or (B); and
                    ``(D) in the case of new equipment that replaces 
                existing equipment with remaining useful life--
                            ``(i) consumption of the existing equipment 
                        for the remaining useful life of the equipment; 
                        and
                            ``(ii) thereafter, consumption of new 
                        equipment of average efficiency.
            ``(3) Electricity savings.--The term `electricity savings' 
        means reductions in electricity consumption achieved through 
        measures implemented after the date of enactment of this 
        section, as determined in accordance with regulations 
        promulgated by the Secretary, that are limited to--
                    ``(A) customer facility savings of electricity, 
                adjusted to reflect any associated increase in fuel 
                consumption at the facility;
                    ``(B) reductions in distribution system losses of 
                electricity achieved by a retail electricity supplier, 
                as compared to losses attributable to new or 
                replacement distribution system equipment of average 
                efficiency, as defined in regulations promulgated by 
                the Secretary;
                    ``(C) CHP savings;
                    ``(D) codes and standards savings of electricity; 
                and
                    ``(E) fuel switching energy savings that results in 
                net savings of electricity.
            ``(4) Natural gas savings.--The term `natural gas savings' 
        means reductions in natural gas consumption from measures 
        implemented after the date of enactment of this section, as 
        determined in accordance with regulations promulgated by the 
        Secretary, that are limited to--
                    ``(A) customer facility savings of natural gas, 
                adjusted to reflect any associated increase in 
                electricity consumption or consumption of other fuels 
                at the facility;
                    ``(B) reductions in leakage, operational losses, 
                and consumption of natural gas fuel to operate a gas 
                distribution system, achieved by a retail natural gas 
                supplier, as compared to similar leakage, losses, and 
                consumption during a base period of not less than 1 
                year;
                    ``(C) codes and standards savings of natural gas; 
                and
                    ``(D) fuel switching energy savings that results in 
                net savings of natural gas.
            ``(5) Retail electricity supplier.--
                    ``(A) In general.--The term `retail electricity 
                supplier' means, for any given calendar year, an 
                electric utility that sells not less than 1,000,000 
                megawatt hours of electric energy to electric consumers 
                for purposes other than resale during the preceding 
                calendar year.
                    ``(B) Inclusions and limitations.--For purposes of 
                determining whether an electric utility qualifies as a 
                retail electricity supplier under subparagraph (A)--
                            ``(i) deliveries by any affiliate of an 
                        electric utility to electric consumers for 
                        purposes other than resale shall be considered 
                        to be deliveries by the electric utility; and
                            ``(ii) deliveries by any electric utility 
                        to a lessee, tenant, or affiliate of the 
                        electric utility shall not be considered to be 
                        deliveries to electric consumers.
            ``(6) Retail natural gas supplier.--
                    ``(A) In general.--The term `retail natural gas 
                supplier' means, for any given calendar year, a local 
                distribution company (as defined in section 2 of the 
                Natural Gas Policy Act of 1978 (15 U.S.C. 3301)), that 
                delivered to natural gas consumers more than 
                5,000,000,000 cubic feet of natural gas for purposes 
                other than resale during the preceding calendar year.
                    ``(B) Inclusions and limitations.--For purposes of 
                determining whether a person qualifies as a retail 
                natural gas supplier under subparagraph (A)--
                            ``(i) deliveries of natural gas by any 
                        affiliate of a local distribution company to 
                        consumers for purposes other than resale shall 
                        be considered to be deliveries by the local 
                        distribution company; and
                            ``(ii) deliveries of natural gas to a 
                        lessee, tenant, or affiliate of a local 
                        distribution company shall not be considered to 
                        be deliveries to natural gas consumers.
    ``(b) Establishment of Program.--
            ``(1) Regulations.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall, by regulation, 
        establish a program to implement and enforce the requirements 
        of this section, including by--
                    ``(A) defining the terms `CHP savings', `code and 
                standards savings', `combined heat and power system', 
                `cost-effective', `fuel switching energy savings', 
                `reporting period', `third-party efficiency provider', 
                and `waste heat energy savings';
                    ``(B) establishing measurement and verification 
                procedures and standards that count only measures and 
                savings that are additional to business-as-usual 
                customer purchase practices;
                    ``(C) establishing requirements under which retail 
                electricity suppliers and retail natural gas suppliers 
                shall--
                            ``(i) demonstrate, document, and report the 
                        compliance of the retail electricity suppliers 
                        and retail natural gas suppliers with the 
                        performance standards under subsection (c); and
                            ``(ii) estimate the impact of the standards 
                        on current and future electricity and natural 
                        gas use in the service territories of the 
                        suppliers;
                    ``(D) establishing requirements governing 
                applications for, and implementation of, delegated 
                State administration under subsection (e); and
                    ``(E) establishing rules to govern transfers of 
                electricity or natural gas savings between suppliers 
                and third-party efficiency providers serving the same 
                State and between suppliers and third-party efficiency 
                providers serving different States.
            ``(2) Coordination with state programs.--In establishing 
        and implementing this section, the Secretary shall, to the 
        maximum extent practicable, preserve the integrity and 
        incorporate best practices of existing State energy efficiency 
        programs.
    ``(c) Performance Standards.--
            ``(1) Compliance obligation.--Not later than May 1 of the 
        calendar year immediately following each reporting period--
                    ``(A) each retail electricity supplier shall submit 
                to the Secretary a report, in accordance with 
                regulations promulgated by the Secretary, demonstrating 
                that the retail electricity supplier has achieved 
                cumulative electricity savings (adjusted to account for 
                any attrition of savings measures implemented in prior 
                years) in each calendar year that are equal to the 
                applicable percentage of the base quantity of the 
                retail electricity supplier; and
                    ``(B) each retail natural gas supplier shall submit 
                to the Secretary a report, in accordance with 
                regulations promulgated by the Secretary, demonstrating 
                that it has achieved cumulative natural gas savings 
                (adjusted to account for any attrition of savings 
                measures implemented in prior years) in each calendar 
                year that are equal to the applicable percentage of the 
                base quantity of such retail natural gas supplier.
            ``(2) Standards for 2017 through 2030.--For each of 
        calendar years 2017 through 2030, the applicable percentages 
        are as follows:

------------------------------------------------------------------------
                          Cumulative Electricity  Cumulative Natural Gas
    ``Calendar Year         Savings Percentage       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.
------------------------------------------------------------------------

            ``(3) Subsequent years.--
                    ``(A) Calendar years 2031 through 2040.--Not later 
                than December 31, 2028, the Secretary shall promulgate 
                regulations establishing performance standards 
                (expressed as applicable percentages of base quantity 
                for both cumulative electricity savings and cumulative 
                natural gas savings) for each of calendar years 2031 
                through 2040.
                    ``(B) Requirements.--The Secretary shall establish 
                standards under this paragraph at levels reflecting the 
                maximum achievable level of cost-effective energy 
                efficiency potential, taking into account--
                            ``(i) cost-effective energy savings 
                        achieved by leading retail electricity 
                        suppliers and retail natural gas suppliers;
                            ``(ii) opportunities for new codes and 
                        standard savings;
                            ``(iii) technology improvements; and
                            ``(iv) other indicators of cost-effective 
                        energy efficiency potential including 
                        differences between States.
                    ``(C) Minimum percentage.--In no case shall the 
                applicable percentages for any calendar year be less 
                than the applicable percentages for calendar year 2030.
            ``(4) Delay of submission for first reporting period.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), for the 2017 reporting period, the Secretary 
                may accept a request from a retail electricity supplier 
                or a retail natural gas supplier to delay the required 
                submission of documentation of all or part of the 
                required savings for up to 2 years.
                    ``(B) Plan for compliance.--The request for delay 
                under subparagraph (A) shall include a plan for coming 
                into full compliance by the end of the 2018-2019 
                reporting period.
            ``(5) Applying unused savings to future years.--If savings 
        achieved in a year exceed the performance standards specified 
        in this subsection, any savings in excess of the performance 
        standards may be applied toward performance standards specified 
        for future years.
    ``(d) Enforcement and Judicial Review.--
            ``(1) Review of retail supplier reports.--
                    ``(A) In general.--The Secretary shall review each 
                report submitted to the Secretary by a retail 
                electricity supplier or retail natural gas supplier 
                under subsection (c) to verify that the applicable 
                performance standards under subsection (c) have been 
                met.
                    ``(B) Exclusion.--In determining compliance with 
                the applicable performance standards under subsection 
                (c), the Secretary shall exclude reported electricity 
                savings or natural gas savings that are not adequately 
                demonstrated and documented, in accordance with the 
                regulations promulgated under subsections (b) and (c).
            ``(2) Penalty for failure to document adequate savings.--If 
        a retail electricity supplier or a retail natural gas supplier 
        fails to demonstrate compliance with an applicable performance 
        standard under subsection (c), or to pay to the State an 
        applicable alternative compliance payment under subsection 
        (e)(3), the Secretary shall assess against the retail 
        electricity supplier or retail natural gas supplier a civil 
        penalty for each failure in an amount equal to, as adjusted for 
        inflation in accordance with such regulations as the Secretary 
        may promulgate--
                    ``(A) $100 per megawatt hour of electricity savings 
                or alternative compliance payment that the retail 
                electricity supplier failed to achieve or make, 
                respectively; or
                    ``(B) $10 per million Btu of natural gas savings or 
                alternative compliance payment that the retail natural 
                gas supplier failed to achieve or make, respectively.
            ``(3) Offsetting state penalties.--The Secretary shall 
        reduce the amount of any penalty under paragraph (2) by the 
        amount paid by the relevant retail electricity supplier or 
        retail natural gas supplier to a State for failure to comply 
        with the requirements of a State energy efficiency resource 
        standard during the same compliance period.
            ``(4) Enforcement procedures.--The Secretary shall assess a 
        civil penalty, as provided under paragraph (2), in accordance 
        with the procedures described in section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(e) State Administration.--
            ``(1) In general.--On receipt of an application from the 
        Governor of a State (including the Mayor of the District of 
        Columbia), the Secretary may delegate to the State 
        responsibility for administering this section within the 
        territory of the State if the Secretary determines that the 
        State will implement an energy efficiency program that meets or 
        exceeds the requirements of this section.
            ``(2) Secretarial determination.--Not later than 180 days 
        after the date on which a complete application is received by 
        the Secretary, the Secretary shall make a substantive 
        determination approving or disapproving a State application, 
        after public notice and comment.
            ``(3) Alternative compliance payments.--
                    ``(A) In general.--As part of an application 
                submitted under paragraph (1), a State may permit 
                retail electricity suppliers or retail natural gas 
                suppliers to pay to the State, by not later than May 1 
                of the calendar year immediately following the 
                applicable reporting period, an alternative compliance 
                payment in an amount equal to, as adjusted for 
                inflation in accordance with such regulations as the 
                Secretary may promulgate, not less than--
                            ``(i) $50 per megawatt hour of electricity 
                        savings needed to make up any deficit with 
                        regard to a compliance obligation under the 
                        applicable performance standard; or
                            ``(ii) $5 per million Btu of natural gas 
                        savings needed to make up any deficit with 
                        regard to a compliance obligation under the 
                        applicable performance standard.
                    ``(B) Use of payments.--Alternative compliance 
                payments collected by a State under subparagraph (A) 
                shall be used by the State to administer the delegated 
                authority of the State under this section and to 
                implement cost-effective energy efficiency programs 
                that--
                            ``(i) to the maximum extent practicable, 
                        achieve electricity savings and natural gas 
                        savings in the State sufficient to make up the 
                        deficit associated with the alternative 
                        compliance payments; and
                            ``(ii) can be measured and verified in 
                        accordance with the applicable procedures and 
                        standards under subsection (b)(1)(B).
            ``(4) Review of state implementation.--
                    ``(A) Periodic review.--Every 2 years, the 
                Secretary shall review State implementation of this 
                section for conformance with the requirements of this 
                section in approximately \1/2\ of the States that have 
                received approval under this subsection to administer 
                the program, so that each State shall be reviewed at 
                least every 4 years.
                    ``(B) Report.--To facilitate the review under 
                subparagraph (A), the Secretary may require the State 
                to submit a report demonstrating the conformance of the 
                State with the requirements of this section.
                    ``(C) Deficiencies.--
                            ``(i) In general.--In completing a review 
                        under this paragraph, if the Secretary finds 
                        deficiencies, the Secretary shall--
                                    ``(I) notify the State of the 
                                deficiencies;
                                    ``(II) direct the State to correct 
                                the deficiencies; and
                                    ``(III) require the State to report 
                                to the Secretary on progress made by 
                                not later than 180 days after the date 
                                on which the State receives notice 
                                under subclause (I).
                            ``(ii) Substantial deficiencies.--If the 
                        deficiencies are substantial, the Secretary 
                        shall--
                                    ``(I) disallow the reported 
                                electricity savings or natural gas 
                                savings that the Secretary determines 
                                are not credible due to deficiencies;
                                    ``(II) re-review the State not 
                                later than 2 years after the date on 
                                which the original review was 
                                completed; and
                                    ``(III) if substantial deficiencies 
                                remain uncorrected after the review 
                                provided for under subclause (II), 
                                revoke the authority of the State to 
                                administer the program established 
                                under this section.
    ``(f) Information and Reports.--In accordance with section 13 of 
the Federal Energy Administration Act of 1974 (15 U.S.C. 772), the 
Secretary may require any retail electricity supplier, retail natural 
gas supplier, third-party efficiency provider, or any other entity that 
the Secretary determines appropriate, to provide any information the 
Secretary determines appropriate to carry out this section.
    ``(g) State Law.--Nothing in this section diminishes or qualifies 
any authority of a State or political subdivision of a State to adopt 
or enforce any law or regulation respecting electricity savings or 
natural gas savings, including any law or regulation establishing 
energy efficiency requirements that are more stringent than those under 
this section, except that no State law or regulation shall relieve any 
person of any requirement otherwise applicable under this section.''.
    (b) Conforming Amendment.--The table of contents of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is 
amended by adding at the end 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.''.

             Subtitle C--Energy Efficiency Retrofit Program

SEC. 3021. ENERGY EFFICIENCY RETROFIT PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Applicant.--The term ``applicant'' means a nonprofit 
        organization that applies for a grant under this section.
            (2) Energy-efficiency improvement.--
                    (A) In general.--The term ``energy-efficiency 
                improvement'' means an installed measure (including a 
                product, equipment, system, service, or practice) that 
                results in a reduction in use by a nonprofit 
                organization for energy or fuel supplied from outside 
                the nonprofit building.
                    (B) Inclusions.--The term ``energy-efficiency 
                improvement'' includes an installed measure described 
                in subparagraph (A) involving--
                            (i) repairing, replacing, or installing--
                                    (I) a roof or lighting system, or 
                                component of a roof or lighting system;
                                    (II) a window;
                                    (III) a door, including a security 
                                door; or
                                    (IV) a heating, ventilation, or air 
                                conditioning system or component of the 
                                system (including insulation and wiring 
                                and plumbing improvements needed to 
                                serve a more efficient system);
                            (ii) a renewable energy generation or 
                        heating system, including a solar, 
                        photovoltaic, wind, geothermal, or biomass 
                        (including wood pellet) system or component of 
                        the system; and
                            (iii) any other measure taken to modernize, 
                        renovate, or repair a nonprofit building to 
                        make the nonprofit building more energy 
                        efficient.
            (3) Nonprofit building.--
                    (A) In general.--The term ``nonprofit building'' 
                means a building operated and owned by a nonprofit 
                organization.
                    (B) Inclusions.--The term ``nonprofit building'' 
                includes a building described in subparagraph (A) that 
                is--
                            (i) a hospital;
                            (ii) a youth center;
                            (iii) a school;
                            (iv) a social-welfare program facility;
                            (v) a faith-based organization; and
                            (vi) any other nonresidential and 
                        noncommercial structure.
    (b) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall establish a pilot program to 
award grants for the purpose of retrofitting nonprofit buildings with 
energy-efficiency improvements.
    (c) Grants.--
            (1) In general.--The Secretary may award grants under the 
        program established under subsection (b).
            (2) Application.--The Secretary may award a grant under 
        this section if an applicant submits to the Secretary an 
        application at such time, in such form, and containing such 
        information as the Secretary may prescribe.
            (3) Criteria for grant.--In determining whether to award a 
        grant under this section, the Secretary shall apply 
        performance-based criteria, which shall give priority to 
        applications based on--
                    (A) the energy savings achieved;
                    (B) the cost-effectiveness of the energy-efficiency 
                improvement;
                    (C) an effective plan for evaluation, measurement, 
                and verification of energy savings;
                    (D) the financial need of the applicant; and
                    (E) the percentage of the matching contribution by 
                the applicant.
            (4) Limitation on individual grant amount.--Each grant 
        awarded under this section shall not exceed--
                    (A) an amount equal to 50 percent of the energy-
                efficiency improvement; and
                    (B) $200,000.
            (5) Cost sharing.--
                    (A) In general.--A grant awarded under this section 
                shall be subject to a minimum non-Federal cost-sharing 
                requirement of 50 percent.
                    (B) In-kind contributions.--The non-Federal share 
                may be provided in the form of in-kind contributions of 
                materials or services.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2016 through 2020, to remain available until expended.

  Subtitle D--Weatherization Enhancement and Local Energy Efficiency 
                     Investment and Accountability

SEC. 3031. FINDINGS.

    Congress finds that--
            (1) the State energy program established under part D of 
        title III of the Energy Policy and Conservation Act (42 U.S.C. 
        6321 et seq.) (referred to in this section as ``SEP'') and the 
        Weatherization Assistance Program for Low-Income Persons 
        established under part A of title IV of the Energy Conservation 
        and Production Act (42 U.S.C. 6861 et seq.) (referred to in 
        this section as ``WAP'') have proven to be beneficial, long-
        term partnerships among Federal, State, and local partners;
            (2) the SEP and the WAP have been reauthorized on a 
        bipartisan basis over many years to address changing national, 
        regional, and State circumstances and needs, especially 
        through--
                    (A) the Energy Policy and Conservation Act (42 
                U.S.C. 6201 et seq.);
                    (B) the Energy Conservation and Production Act (42 
                U.S.C. 6801 et seq.);
                    (C) the State Energy Efficiency Programs 
                Improvement Act of 1990 (Public Law 101-440; 104 Stat. 
                1006);
                    (D) the Energy Policy Act of 1992 (42 U.S.C. 13201 
                et seq.);
                    (E) the Energy Policy Act of 2005 (42 U.S.C. 15801 
                et seq.); and
                    (F) the Energy Independence and Security Act of 
                2007 (42 U.S.C. 17001 et seq.);
            (3) the SEP, also known as the ``State energy conservation 
        program''--
                    (A) was first created in 1975 to implement a State-
                based, national program in support of energy 
                efficiency, renewable energy, economic development, 
                energy emergency preparedness, and energy policy; and
                    (B) has come to operate in every sector of the 
                economy in support of the private sector to improve 
                productivity and has dramatically reduced the cost of 
                government through energy savings at the State and 
                local levels;
            (4) Federal laboratory studies have concluded that, for 
        every Federal dollar invested through the SEP, more than $7 is 
        saved in energy costs and almost $11 in non-Federal funds is 
        leveraged;
            (5) the WAP--
                    (A) was first created in 1976 to assist low-income 
                families in response to the first oil embargo;
                    (B) has become the largest residential energy 
                conservation program in the United States, with more 
                than 7,100,000 homes weatherized since the WAP was 
                created;
                    (C) saves an estimated 35 percent of consumption in 
                the typical weatherized home, yielding average annual 
                savings of $437 per year in home energy costs;
                    (D) has created thousands of jobs in both the 
                construction sector and in the supply chain of 
                materials suppliers, vendors, and manufacturers who 
                supply the WAP;
                    (E) returns $2.51 in energy savings for every 
                Federal dollar spent in energy and nonenergy benefits 
                over the life of weatherized homes;
                    (F) serves as a foundation for residential energy 
                efficiency retrofit standards, technical skills, and 
                workforce training for the emerging broader market and 
                reduces residential and power plant emissions of carbon 
                dioxide by 2.65 metric tons each year per home; and
                    (G) has decreased national energy consumption by 
                the equivalent of 24,100,000 barrels of oil annually;
            (6) the WAP can be enhanced with the addition of a targeted 
        portion of the Federal funds through an innovative program that 
        supports projects performed by qualified nonprofit 
        organizations that have a demonstrated capacity to build, 
        renovate, repair, or improve the energy efficiency of a 
        significant number of low-income homes, building on the success 
        of the existing program without replacing the existing WAP 
        network or creating a separate delivery mechanism for basic WAP 
        services;
            (7) the WAP has increased energy efficiency opportunities 
        by promoting new, competitive public-private sector models of 
        retrofitting low-income homes through new Federal partnerships;
            (8) improved monitoring and reporting of the work product 
        of the WAP has yielded benefits, and expanding independent 
        verification of efficiency work will support the long-term 
        goals of the WAP;
            (9) reports of the Government Accountability Office in 
        2011, the Inspector General of the Department, and State 
        auditors have identified State-level deficiencies in monitoring 
        efforts that can be addressed in a manner that will ensure that 
        WAP funds are used more effectively;
            (10) through the history of the WAP, the WAP has evolved 
        with improvements in efficiency technology, including, in the 
        1990s, many States adopting advanced home energy audits, which 
        has led to great returns on investment; and
            (11) as the home energy efficiency industry has become more 
        performance-based, the WAP should continue to use those 
        advances in technology and the professional workforce.

SEC. 3032. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended by striking ``appropriated--'' and all that 
follows through the period at the end and inserting ``appropriated 
$450,000,000 for each of fiscal years 2016 through 2020.''.

SEC. 3033. GRANTS FOR NEW, SELF-SUSTAINING LOW-INCOME, SINGLE-FAMILY, 
              AND MULTIFAMILY HOUSING ENERGY RETROFIT MODEL PROGRAMS TO 
              ELIGIBLE MULTI-STATE HOUSING AND ENERGY NONPROFIT 
              ORGANIZATIONS.

    The Energy Conservation and Production Act is amended by inserting 
after section 414B (42 U.S.C. 6864b) the following:

``SEC. 414C. GRANTS FOR NEW, SELF-SUSTAINING LOW-INCOME, SINGLE-FAMILY, 
              AND MULTIFAMILY HOUSING ENERGY RETROFIT MODEL PROGRAMS TO 
              ELIGIBLE MULTI-STATE HOUSING AND ENERGY NONPROFIT 
              ORGANIZATIONS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to expand the number of low-income, single-family and 
        multifamily homes that receive energy efficiency retrofits;
            ``(2) to promote innovation and new models of retrofitting 
        low-income homes through new Federal partnerships with covered 
        organizations that leverage substantial donations, donated 
        materials, volunteer labor, homeowner labor equity, and other 
        private sector resources;
            ``(3) to assist the covered organizations in demonstrating, 
        evaluating, improving, and replicating widely the model low-
        income energy retrofit programs of the covered organizations; 
        and
            ``(4) to ensure that the covered organizations make the 
        energy retrofit programs of the covered organizations self-
        sustaining by the time grant funds have been expended.
    ``(b) Definitions.--In this section:
            ``(1) Covered organization.--The term `covered 
        organization' means an organization that--
                    ``(A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under 501(a) of that Code; and
                    ``(B) has an established record of constructing, 
                renovating, repairing, or making energy efficient a 
                total of not less than 250 owner-occupied, single-
                family or multifamily homes per year for low-income 
                households, either directly or through affiliates, 
                chapters, or other direct partners (using the most 
                recent year for which data are available).
            ``(2) Low-income.--The term `low-income' means an income 
        level that is not more than 200 percent of the poverty level 
        (as determined in accordance with criteria established by the 
        Director of the Office of Management and Budget) applicable to 
        a family of the size involved, except that the Secretary may 
        establish a higher or lower level if the Secretary determines 
        that a higher or lower level is necessary to carry out this 
        section.
            ``(3) Weatherization assistance program for low-income 
        persons.--The term `Weatherization Assistance Program for Low-
        Income Persons' means the program established under this part 
        (including part 440 of title 10, Code of Federal Regulations, 
        or successor regulations).
    ``(c) Competitive Grant Program.--The Secretary shall make grants 
to covered organizations through a national competitive process for use 
in accordance with this section.
    ``(d) Award Factors.--In making grants under this section, the 
Secretary shall consider--
            ``(1) the number of low-income homes the applicant--
                    ``(A) has built, renovated, repaired, or made more 
                energy efficient as of the date of the application; and
                    ``(B) can reasonably be projected to build, 
                renovate, repair, or make energy efficient during the 
                10-year period beginning on the date of the 
                application;
            ``(2) the qualifications, experience, and past performance 
        of the applicant, including experience successfully managing 
        and administering Federal funds;
            ``(3) the number and diversity of States and climates in 
        which the applicant works as of the date of the application;
            ``(4) the amount of non-Federal funds, donated or 
        discounted materials, discounted or volunteer skilled labor, 
        volunteer unskilled labor, homeowner labor equity, and other 
        resources the applicant will provide;
            ``(5) the extent to which the applicant could successfully 
        replicate the energy retrofit program of the applicant and 
        sustain the program after the grant funds have been expended;
            ``(6) regional diversity;
            ``(7) urban, suburban, and rural localities; and
            ``(8) such other factors as the Secretary determines to be 
        appropriate.
    ``(e) Applications.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary shall request 
        proposals from covered organizations.
            ``(2) Administration.--To be eligible to receive a grant 
        under this section, an applicant shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(3) Awards.--Not later than 90 days after the date of 
        issuance of a request for proposals, the Secretary shall award 
        grants under this section.
    ``(f) Eligible Uses of Grant Funds.--A grant under this section may 
be used for--
            ``(1) energy efficiency audits, cost-effective retrofit, 
        and related activities in different climatic regions of the 
        United States;
            ``(2) energy efficiency materials and supplies;
            ``(3) organizational capacity--
                    ``(A) to significantly increase the number of 
                energy retrofits;
                    ``(B) to replicate an energy retrofit program in 
                other States; and
                    ``(C) to ensure that the program is self-sustaining 
                after the Federal grant funds are expended;
            ``(4) energy efficiency, audit and retrofit training, and 
        ongoing technical assistance;
            ``(5) information to homeowners on proper maintenance and 
        energy savings behaviors;
            ``(6) quality control and improvement;
            ``(7) data collection, measurement, and verification;
            ``(8) program monitoring, oversight, evaluation, and 
        reporting;
            ``(9) management and administration (up to a maximum of 10 
        percent of the total grant);
            ``(10) labor and training activities; and
            ``(11) such other activities as the Secretary determines to 
        be appropriate.
    ``(g) Maximum Amount.--
            ``(1) In general.--The amount of a grant provided under 
        this section shall not exceed--
                    ``(A) if the amount made available to carry out 
                this section for a fiscal year is $225,000,000 or more, 
                $5,000,000; and
                    ``(B) if the amount made available to carry out 
                this section for a fiscal year is less than 
                $225,000,000, $1,500,000.
            ``(2) Technical and training assistance.--The total amount 
        of a grant provided under this section shall be reduced by the 
        cost of any technical and training assistance provided by the 
        Secretary that relates to the grant.
    ``(h) Guidelines.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of this section, the Secretary shall issue guidelines 
        to implement the grant program established under this section.
            ``(2) Administration.--The guidelines--
                    ``(A) shall not apply to the Weatherization 
                Assistance Program for Low-Income Persons, in whole or 
                major part; but
                    ``(B) may rely on applicable provisions of law 
                governing the Weatherization Assistance Program for 
                Low-Income Persons to establish--
                            ``(i) standards for allowable expenditures;
                            ``(ii) a minimum savings-to-investment 
                        ratio;
                            ``(iii) standards--
                                    ``(I) to carry out training 
                                programs;
                                    ``(II) to conduct energy audits and 
                                program activities;
                                    ``(III) to provide technical 
                                assistance;
                                    ``(IV) to monitor program 
                                activities; and
                                    ``(V) to verify energy and cost 
                                savings;
                            ``(iv) liability insurance requirements; 
                        and
                            ``(v) recordkeeping requirements, which 
                        shall include reporting to the Office of 
                        Weatherization and Intergovernmental Programs 
                        of the Department of Energy applicable data on 
                        each home retrofitted.
    ``(i) Review and Evaluation.--The Secretary shall review and 
evaluate the performance of any covered organization that receives a 
grant under this section (which may include an audit), as determined by 
the Secretary.
    ``(j) Compliance With State and Local Law.--Nothing in this section 
or any program carried out using a grant provided under this section 
supersedes or otherwise affects any State or local law, to the extent 
that the State or local law contains a requirement that is more 
stringent than the applicable requirement of this section.
    ``(k) Annual Reports.--The Secretary shall submit to Congress 
annual reports that provide--
            ``(1) findings;
            ``(2) a description of energy and cost savings achieved and 
        actions taken under this section; and
            ``(3) any recommendations for further action.
    ``(l) Funding.--Of the amount of funds that are made available to 
carry out the Weatherization Assistance Program for each of fiscal 
years 2016 through 2020 under section 422, the Secretary shall use to 
carry out this section for each of fiscal years 2016 through 2020--
            ``(1) 2 percent of the amount if the amount is less than 
        $225,000,000;
            ``(2) 5 percent of the amount if the amount is $225,000,000 
        or more but less than $260,000,000;
            ``(3) 10 percent of the amount if the amount is 
        $260,000,000 or more but less than $400,000,000; and
            ``(4) 20 percent of the amount if the amount is 
        $400,000,000 or more.''.

SEC. 3034. STANDARDS PROGRAM.

    Section 415 of the Energy Conservation and Production Act (42 
U.S.C. 6865) is amended by adding at the end the following:
    ``(f) Standards Program.--
            ``(1) Contractor qualification.--Effective beginning 
        January 1, 2016, to be eligible to carry out weatherization 
        using funds made available under this part, a contractor shall 
        be selected through a competitive bidding process and be--
                    ``(A) accredited by the Building Performance 
                Institute;
                    ``(B) an Energy Smart Home Performance Team 
                accredited under the Residential Energy Services 
                Network; or
                    ``(C) accredited by an equivalent accreditation or 
                program accreditation-based State certification program 
                approved by the Secretary.
            ``(2) Grants for energy retrofit model programs.--
                    ``(A) In general.--To be eligible to receive a 
                grant under section 414C, a covered organization (as 
                defined in section 414C(b)) shall use a crew chief 
                who--
                            ``(i) is certified or accredited in 
                        accordance with paragraph (1); and
                            ``(ii) supervises the work performed with 
                        grant funds.
                    ``(B) Volunteer labor.--A volunteer who performs 
                work for a covered organization that receives a grant 
                under section 414C shall not be required to be 
                certified under this subsection if the volunteer is not 
                directly installing or repairing mechanical equipment 
                or other items that require skilled labor.
                    ``(C) Training.--The Secretary shall use training 
                and technical assistance funds available to the 
                Secretary to assist covered organizations under section 
                414C in providing training to obtain certification 
                required under this subsection, including provisional 
                or temporary certification.
            ``(3) Minimum efficiency standards.--Effective beginning 
        October 1, 2016, the Secretary shall ensure that--
                    ``(A) each retrofit for which weatherization 
                assistance is provided under this part meets minimum 
                efficiency and quality of work standards established by 
                the Secretary after weatherization of a dwelling unit;
                    ``(B) at least 10 percent of the dwelling units are 
                randomly inspected by a third party accredited under 
                this subsection to ensure compliance with the minimum 
                efficiency and quality of work standards established 
                under subparagraph (A); and
                    ``(C) the standards established under this 
                subsection meet or exceed the industry standards for 
                home performance work that are in effect on the date of 
                enactment of this subsection, as determined by the 
                Secretary.''.

SEC. 3035. REAUTHORIZATION OF STATE ENERGY PROGRAM.

    Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 
6325(f)) is amended by striking ``$125,000,000 for each of fiscal years 
2007 through 2012'' and inserting ``$75,000,000 for each of fiscal 
years 2016 through 2020''.

        Subtitle E--Utility Energy Service Contracts Improvement

SEC. 3041. FINDINGS.

    Congress finds that--
            (1) the Federal Government is the largest consumer of 
        energy in the United States;
            (2) Federal agencies are expected to meet, by law, 
        Executive order, and mandate, stringent energy efficiency and 
        conservation targets;
            (3) the utility energy service contract (referred to in 
        this section as ``UESC'') was developed to provide Federal 
        agencies an effective means to implement energy efficiency, 
        renewable energy and water efficiency projects, and has been 
        used successfully to invest nearly $2,700,000,000 in property 
        at Federal facilities;
            (4) the General Services Administration, which manages more 
        than 9,600 Federal properties and is the lead agency for 
        procuring utility services for the Federal Government, has 
        determined that UESCs may extend beyond a 10-year period under 
        the law;
            (5) the Federal Energy Management Program, which oversees 
        the UESC program and is a principal office guiding agencies to 
        use funding more effectively in meeting Federal and agency-
        specific energy and resource management objectives, has 
        determined that UESCs may extend beyond a 10-year period under 
        the law;
            (6) extensive precedent exists for Federal agencies to 
        contract for energy saving services using contracts with term 
        limits of more than 10 years but not to exceed 25 years;
            (7) a number of Federal agencies, contrary to congressional 
        intent, have sought to limit UESC term limits to periods of 
        less than 10 years; and
            (8) greater flexibility with UESCs will help reduce the 
        operational cost of Federal agencies, ultimately saving money 
        for taxpayers.

SEC. 3042. UTILITY ENERGY SERVICE CONTRACTS.

    Part 3 of title V of the National Energy Conservation Policy Act 
(as amended by section 2151) is amended by adding after section 554 the 
following:

``SEC. 555. UTILITY ENERGY SERVICE CONTRACTS.

    ``(a) In General.--Each Federal agency may use, to the maximum 
extent practicable, measures provided by law to meet energy efficiency 
and conservation mandates and laws, including through utility energy 
service contracts.
    ``(b) Contract Period.--The term of a utility energy service 
contract entered into by a Federal agency may have a contract period 
that extends beyond 10 years, but not to exceed 25 years.
    ``(c) Requirements.--The conditions of a utility energy service 
contract entered into by a Federal agency shall include requirements 
for measurement, verification, and performance assurances or guarantees 
of the savings.''.

  Subtitle F--State Residential Building Energy Efficiency Loan Pilot 
                                Program

SEC. 3051. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES LOAN 
              PILOT PROGRAM.

    (a) Loans for Residential Building Energy Efficiency Upgrades.--
Part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.) is amended by adding at the end the following:

``SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES.

    ``(a) Definitions.--In this section:
            ``(1) Consumer-friendly.--The term `consumer-friendly', 
        with respect to a loan repayment approach, means a loan 
        repayment approach that--
                    ``(A) emphasizes convenience for customers;
                    ``(B) is of low cost to consumers; and
                    ``(C) emphasizes simplicity and ease of use for 
                consumers in the billing process.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State or territory of the United States; 
                and
                    ``(B) a tribal organization (as defined in section 
                4 of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)).
            ``(3) Energy advisor program.--
                    ``(A) In general.--The term `energy advisor 
                program' means any program to provide to owners or 
                residents of residential buildings advice, information, 
                and support in the identification, prioritization, and 
                implementation of energy efficiency and energy savings 
                measures.
                    ``(B) Inclusions.--The term `energy advisor 
                program' includes a program that provides--
                            ``(i) interpretation of energy audit 
                        reports;
                            ``(ii) assistance in the prioritization of 
                        improvements;
                            ``(iii) assistance in finding qualified 
                        contractors;
                            ``(iv) assistance in contractor bid 
                        reviews;
                            ``(v) education on energy conservation and 
                        energy efficiency;
                            ``(vi) explanations of available incentives 
                        and tax credits;
                            ``(vii) assistance in completion of rebate 
                        and incentive paperwork; and
                            ``(viii) any other similar type of support.
            ``(4) Energy efficiency.--The term `energy efficiency' 
        means a decrease in homeowner or residential tenant consumption 
        of energy (including electricity and thermal energy) that is 
        achieved without reducing the quality of energy services 
        through--
                    ``(A) a measure or program that targets customer 
                behavior;
                    ``(B) equipment or energy systems;
                    ``(C) a device; or
                    ``(D) other material.
            ``(5) Energy efficiency upgrade.--
                    ``(A) In general.--The term `energy efficiency 
                upgrade' means any project or activity--
                            ``(i) the primary purpose of which is 
                        increasing energy efficiency; and
                            ``(ii) that is carried out on a residential 
                        building.
                    ``(B) Inclusions.--The term `energy efficiency 
                upgrade' includes the installation or improvement of a 
                renewable energy facility for heating or electricity 
                generation serving a residential building carried out 
                in conjunction with an energy efficiency project or 
                activity.
            ``(6) Program entity.--The term `program entity' means a 
        local government, utility, or other entity that carries out a 
        financing program under subsection (e)(2)(A) pursuant to a 
        contract or other agreement with an eligible entity.
            ``(7) Recipient household.--The term `recipient household' 
        means the owner or tenant of a residential building who 
        receives financing under this section for an energy efficiency 
        upgrade of the residential building.
            ``(8) Residential building.--
                    ``(A) In general.--The term `residential building' 
                means a building used for residential purposes.
                    ``(B) Inclusions.--The term `residential building' 
                includes--
                            ``(i) a single-family residence;
                            ``(ii) a multifamily residence composed not 
                        more than 4 units; and
                            ``(iii) a mixed-use building that includes 
                        not more than 4 residential units.
    ``(b) Establishment of Program.--
            ``(1) In general.--The Secretary shall establish a program 
        under this part under which the Secretary shall make available 
        to eligible entities loans for the purpose of establishing or 
        expanding programs that provide to recipient households 
        financing for energy efficiency upgrades of residential 
        buildings.
            ``(2) Consultation.--In establishing the program under 
        paragraph (1), the Secretary shall consult, as the Secretary 
        determines to be appropriate, with stakeholders and the public.
            ``(3) No requirement to participate.--No eligible entity 
        shall be required to participate in any manner in the program 
        established under paragraph (1).
            ``(4) Deadlines.--The Secretary shall--
                    ``(A) not later than 1 year after the date of 
                enactment of this section, implement the program 
                established under paragraph (1) (including soliciting 
                applications from eligible entities in accordance with 
                subsection (c)); and
                    ``(B) not later than 2 years after the date of 
                enactment of this section, disburse the initial loans 
                provided under this section.
    ``(c) Applications.--
            ``(1) In general.--To be eligible to receive a loan under 
        this section, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(2) Selection date.--Not later than 21 months after the 
        date of enactment of this section, the Secretary shall select 
        eligible entities to receive the initial loans provided under 
        this section, in accordance with the requirements described in 
        paragraph (3).
            ``(3) Requirements.--In selecting eligible entities to 
        receive loans under this section, the Secretary shall--
                    ``(A) to the maximum extent practicable, ensure--
                            ``(i) that both innovative and established 
                        approaches to the challenges of financing 
                        energy efficiency upgrades are supported;
                            ``(ii) that energy efficiency upgrades are 
                        conducted and validated to comply with best 
                        practices for work quality, as determined by 
                        the Secretary;
                            ``(iii) regional diversity among eligible 
                        entities that receive the loans, including 
                        participation by rural States and small States;
                            ``(iv) significant participation by 
                        families with income levels at or below the 
                        median income level for the applicable 
                        geographical region, as determined by the 
                        Secretary; and
                            ``(v) the incorporation of an energy 
                        advisor program by, as applicable--
                                    ``(I) eligible entities; or
                                    ``(II) program entities;
                    ``(B) evaluate applications based primarily on--
                            ``(i) the projected reduction in energy 
                        use, as determined in accordance with such 
                        specific and commonly available methodology as 
                        the Secretary shall establish, by regulation;
                            ``(ii) the creditworthiness of the eligible 
                        entity; and
                            ``(iii) the incorporation of measures for 
                        making the loan repayment system for recipient 
                        households as consumer-friendly as practicable;
                    ``(C) evaluate applications based secondarily on--
                            ``(i) the extent to which the proposed 
                        financing program of the eligible entity 
                        incorporates best practices for such a program, 
                        as determined by the Secretary;
                            ``(ii)(I) whether the eligible entity has 
                        created a plan for evaluating the effectiveness 
                        of the proposed financing program; and
                            ``(II) whether that plan includes--
                                    ``(aa) a robust strategy for 
                                collecting, managing, and analyzing 
                                data, as well as making the data 
                                available to the public; and
                                    ``(bb) experimental studies, which 
                                may include investigations of how human 
                                behavior impacts the effectiveness of 
                                efficiency improvements;
                            ``(iii) the extent to which Federal funds 
                        are matched by funding from State, local, 
                        philanthropic, private sector, and other 
                        sources;
                            ``(iv) the extent to which the proposed 
                        financing program will be coordinated and 
                        marketed with other existing or planned energy 
                        efficiency or energy conservation programs 
                        administered by--
                                    ``(I) utilities and rural 
                                cooperatives;
                                    ``(II) State, tribal, territorial, 
                                or local governments; or
                                    ``(III) community development 
                                financial institutions; and
                            ``(v) such other factors as the Secretary 
                        determines to be appropriate; and
                    ``(D) not provide an advantage or disadvantage to 
                applications that include renewable energy in the 
                program.
    ``(d) Administrative Provisions.--
            ``(1) Term.--The Secretary shall establish terms for loans 
        provided to eligible entities under this section--
                    ``(A) in a manner that--
                            ``(i) provides for a high degree of cost 
                        recovery; and
                            ``(ii) ensures that, with respect to all 
                        loans provided to or by eligible entities under 
                        this section, the loans are competitive with, 
                        or superior to, other forms of financing for 
                        similar purposes; and
                    ``(B) subject to the condition that the term of a 
                loan provided to an eligible entity under this section 
                shall not exceed 35 years.
            ``(2) Interest rates.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary, at the discretion of the Secretary, shall 
                charge interest on a loan provided to an eligible 
                entity under this section at a fixed rate equal, or 
                approximately equal, to the interest rate charged on 
                Treasury securities of comparable maturity.
                    ``(B) Leveraged loans.--The interest rate and other 
                terms of the loans provided to eligible entities under 
                this section shall be established in a manner that 
                ensures that the total amount of the loans is equal to 
                not less than 20 times, and not more than 50 times, an 
                amount equivalent to 80 percent of the amount 
                appropriated for administrative and general financial 
                support costs pursuant to subsection (g)(2).
            ``(3) No penalty on early repayment.--The Secretary shall 
        not assess any penalty for early repayment by an eligible 
        entity of a loan provided under this section.
            ``(4) Return of unused portion.--As a condition of receipt 
        of a loan under this section, an eligible entity shall agree to 
        return to the general fund of the Treasury any portion of the 
        loan amount that is unused by the eligible entity within a 
        reasonable period after the date of receipt of the loan, as 
        determined by the Secretary.
    ``(e) Use of Funds.--
            ``(1) In general.--An eligible entity shall use a loan 
        provided under this section to establish or expand 1 or more 
        financing programs--
                    ``(A) the purpose of which is to enable recipient 
                households to undertake energy efficiency upgrades of 
                residential buildings;
                    ``(B) that may, at the sole discretion of the 
                eligible entity, require an outlay of capital by 
                recipient households in accordance with the goals of 
                the program under this section; and
                    ``(C) that incorporate a consumer-friendly loan 
                repayment approach.
            ``(2) Structure of financing program.--A financing program 
        of an eligible entity may--
                    ``(A) consist--
                            ``(i) primarily or entirely of a financing 
                        program administered by--
                                    ``(I) the applicable State; or
                                    ``(II) a program entity; or
                            ``(ii) of a combination of programs 
                        described in clause (i);
                    ``(B) rely on financing provided by--
                            ``(i) the eligible entity; or
                            ``(ii) a third party, acting through the 
                        eligible entity; and
                    ``(C) include a provision pursuant to which a 
                recipient household shall agree to return to the 
                eligible entity any portion of the assistance that is 
                unused by the recipient household within a reasonable 
                period after the date of receipt of the assistance, as 
                determined by the eligible entity.
            ``(3) Form of assistance.--Assistance from an eligible 
        entity under this subsection may be provided in any form, or in 
        accordance with any program, authorized by Federal law 
        (including regulations), including in the form of--
                    ``(A) a revolving loan fund;
                    ``(B) a credit enhancement structure designed to 
                mitigate the effects of default; or
                    ``(C) a program that--
                            ``(i) adopts any other approach for 
                        providing financing for energy efficiency 
                        upgrades producing significant energy 
                        efficiency gains; and
                            ``(ii) incorporates measures for making the 
                        loan repayment system for recipient households 
                        as consumer-friendly as practicable.
            ``(4) Scope of assistance.--Assistance provided by an 
        eligible entity under this subsection may be used to pay for 
        costs associated with carrying out an energy efficiency 
        upgrade, including materials and labor.
            ``(5) Additional assistance.--In addition to the amount of 
        the loan provided to an eligible entity by the Secretary under 
        subsection (b), the eligible entity or program entity, as 
        applicable, may provide to recipient households such assistance 
        under this subsection as the eligible entity or program entity 
        considers to be appropriate from any other funds of the 
        eligible entity or program entity, including funds provided to 
        the eligible entity by the Secretary for administrative costs 
        pursuant to this section.
            ``(6) Limitations.--
                    ``(A) Interest rates.--
                            ``(i) Interest charged by eligible 
                        entities.--The interest rate charged by an 
                        eligible entity on assistance provided under 
                        this subsection--
                                    ``(I) shall be fixed; and
                                    ``(II) shall not exceed the 
                                interest rate paid by the eligible 
                                entity to the Secretary under 
                                subsection (d)(2).
                            ``(ii) Interest charged by program 
                        entities.--A program entity that receives 
                        funding from an eligible entity under this 
                        subsection for the purpose of capitalizing a 
                        residential energy efficiency financing program 
                        may charge interest on any loan provided by the 
                        program entity at a fixed rate that is as low 
                        as practicable, but not more than 5 percent 
                        more than the applicable interest rate paid by 
                        the eligible entity to the Secretary under 
                        subsection (d)(2).
                    ``(B) No penalty on early repayment.--An eligible 
                entity or program entity, as applicable, shall not 
                assess any penalty for early repayment by any recipient 
                household to the eligible entity or program entity, as 
                applicable.
    ``(f) Reports.--
            ``(1) Eligible entities.--
                    ``(A) In general.--Not later than 2 years after the 
                date of receipt of the loan, and annually thereafter 
                for the term of the loan, an eligible entity that 
                receives a loan under this section shall submit to the 
                Secretary a report describing the performance of each 
                program and activity carried out using the loan, 
                including anonymized loan performance data.
                    ``(B) Requirements.--The Secretary, in consultation 
                with eligible entities and other stakeholders (such as 
                lending institutions and the real estate industry), 
                shall establish such requirements for the reports under 
                this paragraph as the Secretary determines to be 
                appropriate--
                            ``(i) to ensure that the reports are clear, 
                        consistent, and straightforward; and
                            ``(ii) taking into account the reporting 
                        requirements for similar programs in which the 
                        eligible entities are participating, if any.
            ``(2) Secretary.--The Secretary shall submit to Congress 
        and make available to the public--
                    ``(A) not less frequently than once each year, a 
                report describing the performance of the program under 
                this section, including a synthesis and analysis of the 
                information provided in the reports submitted to the 
                Secretary under paragraph (1)(A); and
                    ``(B) on termination of the program under this 
                section, an assessment of the success of, and education 
                provided by, the measures carried out by eligible 
                entities during the term of the program.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $37,500,000 for energy advisor programs;
            ``(2) $25,000,000 for administrative and general financial 
        support costs to the Secretary of carrying out this section; 
        and
            ``(3) $37,500,000 for administrative costs to States in 
        carrying out this section.''.
    (b) Reorganization.--
            (1) In general.--Part D of title III of the Energy Policy 
        and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
                    (A) by redesignating sections 362, 363, 364, 365, 
                and 366 as sections 364, 365, 366, 363, and 362, 
                respectively, and moving the sections so as to appear 
                in numerical order;
                    (B) in section 362 (as so redesignated)--
                            (i) in paragraph (3)(B)(i), by striking 
                        ``section 367, and'' and inserting ``section 
                        367 (as in effect on the day before the date of 
                        enactment of the State Energy Efficiency 
                        Programs Improvement Act of 1990 (42 U.S.C. 
                        6201 note; Public Law 101-440)); and''; and
                            (ii) in each of paragraphs (4) and (6), by 
                        striking ``section 365(e)(1)'' each place it 
                        appears and inserting ``section 363(e)(1)'';
                    (C) in section 363 (as so redesignated)--
                            (i) in subsection (b), by striking ``the 
                        provisions of sections 362 and 364 and 
                        subsection (a) of section 363'' and inserting 
                        ``sections 364, 365(a), and 366''; and
                            (ii) in subsection (g)(1)(A), in the second 
                        sentence, by striking ``section 362'' and 
                        inserting ``section 364''; and
                    (D) in section 365 (as so redesignated)--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), by striking 
                                ``section 362,'' and inserting 
                                ``section 364;''; and
                                    (II) in paragraph (2), by striking 
                                ``section 362(b) or (e)'' and inserting 
                                ``subsection (b) or (e) of section 
                                364''; and
                            (ii) in subsection (b)(2), in the matter 
                        preceding subparagraph (A), by striking 
                        ``section 362(b) or (e)'' and inserting 
                        ``subsection (b) or (e) of section 364''.
            (2) Conforming amendments.--Section 391 of the Energy 
        Policy and Conservation Act (42 U.S.C. 6371) is amended--
                    (A) in paragraph (2)(M), by striking ``section 
                365(e)(2)'' and inserting ``section 363(e)(2)''; and
                    (B) in paragraph (10), by striking ``section 362 of 
                this Act'' and inserting ``section 364''.
            (3) Clerical amendment.--The table of contents of the 
        Energy Policy and Conservation Act (42 U.S.C. 6201 note; Public 
        Law 94-163) is amended by striking the items relating to part D 
        of title III 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.''.

             Subtitle G--Smart Energy and Water Efficiency

SEC. 3061. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.

    Subtitle A of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16191 et seq.) is amended by adding at the end the following:

``SEC. 918. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a utility;
                    ``(B) a municipality;
                    ``(C) a water district;
                    ``(D) an Indian tribe or Alaska Native village; and
                    ``(E) any other authority that provides water, 
                wastewater, or water reuse services.
            ``(2) Smart energy and water efficiency pilot program.--The 
        term `smart energy and water efficiency pilot program' or 
        `pilot program' means the pilot program established under 
        subsection (b).
    ``(b) Smart Energy and Water Efficiency Pilot Program.--
            ``(1) In general.--The Secretary shall establish and carry 
        out a smart energy and water efficiency pilot program in 
        accordance with this section.
            ``(2) Purpose.--The purpose of the smart energy and water 
        efficiency pilot program is to award grants to eligible 
        entities to demonstrate unique, advanced, or innovative 
        technology-based solutions that will--
                    ``(A) increase the energy efficiency of water, 
                wastewater, and water reuse systems;
                    ``(B) improve energy efficiency of water, 
                wastewater, and water reuse systems to help communities 
                across the United States make measurable progress in 
                conserving water, saving energy, and reducing costs;
                    ``(C) support the implementation of innovative and 
                unique processes and the installation of established 
                advanced automated systems that provide real-time data 
                on energy and water; and
                    ``(D) improve energy-water conservation and quality 
                and predictive maintenance through technologies that 
                utilize internet connected technologies, including 
                sensors, intelligent gateways, and security embedded in 
                hardware.
            ``(3) Project selection.--
                    ``(A) In general.--The Secretary shall make 
                competitive, merit-reviewed grants under the pilot 
                program to not less than 3, but not more than 5, 
                eligible entities.
                    ``(B) Selection criteria.--In selecting an eligible 
                entity to receive a grant under the pilot program, the 
                Secretary shall consider--
                            ``(i) energy and cost savings;
                            ``(ii) the uniqueness, commercial 
                        viability, and reliability of the technology to 
                        be used;
                            ``(iii) the degree to which the project 
                        integrates next-generation sensors software, 
                        analytics, and management tools;
                            ``(iv) the anticipated cost-effectiveness 
                        of the pilot project through measurable energy 
                        efficiency savings, water savings or reuse, and 
                        infrastructure costs averted;
                            ``(v) whether the technology can be 
                        deployed in a variety of geographic regions and 
                        the degree to which the technology can be 
                        implemented in a wide range of applications 
                        ranging in scale from small towns to large 
                        cities, including tribal communities;
                            ``(vi) whether the technology has been 
                        successfully deployed elsewhere;
                            ``(vii) whether the technology was sourced 
                        from a manufacturer based in the United States; 
                        and
                            ``(viii) whether the project will be 
                        completed in 5 years or less.
                    ``(C) Applications.--
                            ``(i) In general.--Subject to clause (ii), 
                        an eligible entity seeking a grant under the 
                        pilot program shall submit to the Secretary an 
                        application at such time, in such manner, and 
                        containing such information as the Secretary 
                        determines to be necessary.
                            ``(ii) Contents.--An application under 
                        clause (i) shall, at a minimum, include--
                                    ``(I) a description of the project;
                                    ``(II) a description of the 
                                technology to be used in the project;
                                    ``(III) the anticipated results, 
                                including energy and water savings, of 
                                the project;
                                    ``(IV) a comprehensive budget for 
                                the project;
                                    ``(V) the names of the project lead 
                                organization and any partners;
                                    ``(VI) the number of users to be 
                                served by the project;
                                    ``(VII) a description of the ways 
                                in which the proposal would meet 
                                performance measures established by the 
                                Secretary; and
                                    ``(VIII) any other information that 
                                the Secretary determines to be 
                                necessary to complete the review and 
                                selection of a grant recipient.
            ``(4) Administration.--
                    ``(A) In general.--Not later than 300 days after 
                the date of enactment of this section, the Secretary 
                shall select grant recipients under this section.
                    ``(B) Evaluations.--
                            ``(i) Annual evaluations.--The Secretary 
                        shall annually carry out an evaluation of each 
                        project for which a grant is provided under 
                        this section that meets performance measures 
                        and benchmarks developed by the Secretary, 
                        consistent with the purposes of this section.
                            ``(ii) Requirements.--Consistent with the 
                        performance measures and benchmarks developed 
                        under clause (i), in carrying out an evaluation 
                        under that clause, the Secretary shall--
                                    ``(I) evaluate the progress and 
                                impact of the project; and
                                    ``(II) assesses the degree to which 
                                the project is meeting the goals of the 
                                pilot program.
                    ``(C) Technical and policy assistance.--On the 
                request of a grant recipient, the Secretary shall 
                provide technical and policy assistance.
                    ``(D) Best practices.--The Secretary shall make 
                available to the public through the Internet and other 
                means the Secretary considers to be appropriate--
                            ``(i) a copy of each evaluation carried out 
                        under subparagraph (B); and
                            ``(ii) a description of any best practices 
                        identified by the Secretary as a result of 
                        those evaluations.
                    ``(E) Report to congress.--The Secretary shall 
                submit to Congress a report containing the results of 
                each evaluation carried out under subparagraph (B).
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000, to remain available 
until expended.''.

                Subtitle H--Regional Energy Partnerships

SEC. 3071. DEFINITIONS.

    In this subtitle:
            (1) Cooperative agreement.--The term ``cooperative 
        agreement'' has the meaning given the term in sections 6302 and 
        6305 of title 31, United States Code.
            (2) Secretaries.--The term ``Secretaries'' means--
                    (A) the Secretary, acting through the Assistant 
                Secretary of the Office of Electricity Delivery and 
                Energy Reliability in consultation with the Assistant 
                Secretary of Energy Efficiency and Renewable Energy, 
                the Assistant Secretary of Fossil Energy, and the 
                Director of the Office of Nuclear Energy, Science, and 
                Technology Programs; and
                    (B) the Secretary of the Interior, acting through 
                the Assistant Secretary for Land and Minerals 
                Management in consultation with the Director of the 
                Bureau of Land Management, the Director of the Bureau 
                of Ocean Energy Management, the Assistant Secretary for 
                Indian Affairs, and the Assistant Secretary for Fish 
                and Wildlife and Parks.
            (3) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 3072. REGIONAL ENERGY PARTNERSHIPS.

    (a) In General.--The Secretaries shall provide assistance in 
accordance with this section for the purpose of developing energy 
strategies and plans that help harmonize and promote national, 
regional, and State energy goals, including goals for advancing 
resilient energy systems to mitigate risks and prepare for emerging 
energy challenges.
    (b) Technical Assistance.--The Secretaries may provide such 
technical assistance to States, political subdivisions of States, 
substate regional organizations (including organizations that cross 
State boundaries), multistate regional organizations, Indian tribes, 
and nonprofit organizations as the Secretaries determine appropriate to 
promote--
            (1) the development and improvement of regional energy 
        strategies, where appropriate, and plans that sustain and 
        promote energy system modernization across the United States;
            (2) investment in energy infrastructure, technological 
        capacity, innovation, and workforce development to keep pace 
        with the changing energy ecosystem;
            (3) structural transformation of the financial, regulatory, 
        legal, and institutional systems that govern energy planning, 
        production, and delivery within States and regions; and
            (4) public-private partnerships for the implementation of 
        regional energy strategies and plans.
    (c) Cooperative Agreements.--
            (1) In general.--The Secretaries may enter into cooperative 
        agreements with one or more States and Indian tribes, on a 
        regional basis, to develop and implement strategies and plans 
        to address the energy challenges of States, Indian tribes, and 
        regions.
            (2) Requirements.--A cooperative agreement entered into 
        under this subsection shall include provisions covering or 
        providing--
                    (A) the purpose and goals of the cooperative 
                agreement, such as advancing energy efficiency, clean 
                energy, fuel and supply diversity, energy system 
                resiliency, economic development, or other goals to 
                make measurable, significant progress toward specified 
                metrics and objectives that are agreed to by the States 
                or Indian tribes and the Secretaries;
                    (B) the roles and responsibilities of the States or 
                Indian tribes and the Secretaries for various functions 
                of the cooperative agreement, including outreach, 
                communication, resources, and capabilities;
                    (C) a comprehensive framework for the development 
                of energy strategies and plans for States, Indian 
                tribes, or regions;
                    (D) timeframes with associated metrics and 
                objectives;
                    (E) a governance structure to resolve conflicts and 
                facilitate decisionmaking consistent with underlying 
                authorities; and
                    (F) other provisions determined necessary by the 
                Secretaries, in consultation with the States or Indian 
                tribes, to achieve the purposes described in paragraph 
                (1).
    (d) Staff.--
            (1) In general.--Not later than 30 days after the date of 
        the entering into a cooperative agreement under subsection (c), 
        the Secretaries shall, as appropriate, assign or employ 
        individuals who have expertise in the technical and regulatory 
        issues relating to the cooperative agreement, including 
        particular expertise in (as applicable)--
                    (A) energy systems integration;
                    (B) renewable energy and energy efficiency;
                    (C) innovative financing mechanisms;
                    (D) utility regulatory policy;
                    (E) modeling and analysis;
                    (F) facilitation and arbitration;
                    (G) energy assurance and emergency preparedness; 
                and
                    (H) cyber and physical security of energy systems.
            (2) Duties.--Each individual assigned to carry out a 
        cooperative agreement under paragraph (1) shall--
                    (A) report to a location in the applicable State, 
                Indian tribe, or region not later than 90 days after 
                the date of assignment;
                    (B) be responsible for issues and technical 
                assistance relating to the cooperative agreement;
                    (C) participate as part of the team of personnel 
                working on developing and implementing the applicable 
                regional energy strategy and plan; and
                    (D) build capacity within the State, Indian tribe, 
                or region to continue to implement the goals of this 
                subtitle after the expiration of the cooperative 
                agreement.
    (e) Comprehensive Framework.--Under a cooperative agreement, a 
comprehensive framework shall be developed that identifies 
opportunities and actions across various energy sectors and cross-
cutting issue areas, including--
            (1) end-use efficiency;
            (2) energy supply, including electric generation and fuels;
            (3) energy storage and delivery;
            (4) transportation;
            (5) technical integration, including standards and 
        interdependencies;
            (6) institutional structures;
            (7) regulatory policies;
            (8) financial incentives; and
            (9) market mechanisms.
    (f) Awards.--
            (1) Definitions.--In this subsection:
                    (A) Application group.--The term ``application 
                group'' means a group of States or Indian tribes that 
                have--
                            (i) entered into a cooperative agreement, 
                        on a regional basis, with the Secretaries under 
                        subsection (c); and
                            (ii) submitted an application for an award 
                        under paragraph (2)(A).
                    (B) Partner state.--The term ``partner State'' 
                means a State or Indian tribe that is part of an 
                application group.
            (2) Applications.--
                    (A) In general.--Subject to subparagraph (B), an 
                application group may apply to the Secretaries for 
                awards under this subsection.
                    (B) Individual states.--An individual State or 
                Indian tribe that has entered into a cooperative 
                agreement with the Secretaries under subsection (c) may 
                apply to the Secretaries for an award under this 
                subsection if the State or Indian tribe demonstrates to 
                the Secretaries the uniqueness of the energy challenges 
                facing the State or Indian tribe.
            (3) Base amount.--Subject to paragraph (4), the Secretaries 
        shall provide 6 awards under this subsection, with a base 
        amount of $20,000,000 for each award.
            (4) Bonus amount for application groups.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretaries shall increase the amount of an award 
                provided under this subsection to an application group 
                for a successful application under paragraph (2)(A) by 
                the quotient obtained by dividing--
                            (i) the product obtained by multiplying--
                                    (I) the number of partner States in 
                                the application group; and
                                    (II) $100,000,000; by
                            (ii) the total number of partner States of 
                        all successful applications under this 
                        subsection.
                    (B) Maximum amount.--The amount of a bonus 
                determined under subparagraph (A) shall not exceed an 
                amount that represents $5,000,000 for each partner 
                State that is a member of the relevant application 
                group.
            (5) Limitation.--A State or Indian tribe shall not be part 
        of more than 1 award under this subsection.
            (6) Selection criteria.--In selecting applications for 
        awards under this subsection, the Secretaries shall consider--
                    (A) existing commitments from States or Indian 
                tribes, such as memoranda of understanding;
                    (B) for States that are part of the contiguous 48 
                States, the number of contiguous States involved that 
                cover a region;
                    (C) the diversity of the regions represented by all 
                applications;
                    (D) the amount of cost-share or in-kind 
                contributions from States or Indian tribes;
                    (E) the scope and focus of regional and State 
                programs and strategies, with an emphasis on energy 
                system resiliency and grid modernization, efficiency, 
                and clean energy;
                    (F) a management and oversight plan to ensure that 
                objectives are met;
                    (G) an outreach plan for the inclusion of 
                stakeholders in the process for developing and 
                implementing State or regional energy strategies and 
                plans;
                    (H) the inclusion of tribal entities;
                    (I) plans to fund and sustain activities identified 
                in regional energy strategies and plans; and
                    (J) the clarity of roles and responsibilities of 
                each State and the Secretaries.
            (7) Use of awards.--
                    (A) In general.--Awards provided under this 
                subsection shall be used to achieve the purpose of this 
                section, including by--
                            (i) conducting technical analyses, resource 
                        studies, and energy system baselines;
                            (ii) convening and providing education to 
                        stakeholders on emerging energy issues;
                            (iii) building decision support and 
                        planning tools; and
                            (iv) improving communication between and 
                        participation of stakeholders.
                    (B) Limitation.--Awards provided under this 
                subsection shall not be used for--
                            (i) capitalization of green banks or loan 
                        guarantees; or
                            (ii) building facilities or funding capital 
                        projects.

SEC. 3073. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this subtitle $250,000,000, to remain available until expended.
    (b) Allocation.--Of the amount authorized to be appropriated under 
subsection (a)--
            (1) $120,000,000 shall be used for the base amount of 
        awards under section 3072(f)(3);
            (2) $100,000,000 shall be used for the bonus amount of 
        awards under section 3072(f)(4); and
            (3) $30,000,000 shall be for the administration of this 
        subtitle, including--
                    (A) the assignment of staff under section 3072(d); 
                and
                    (B) if the Secretaries determine appropriate, the 
                sharing of best practices from regional partnerships by 
                parties to cooperative agreements entered into under 
                this subtitle.
    (c) State Energy Offices.--Funds provided to a State under this 
subtitle shall be provided to the office within the State that is 
responsible for developing the State energy plan for the State under 
part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.).
    (d) Maintenance of Funding.--The funding provided to States under 
this subtitle shall supplement (and not supplant) funding provided 
under part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.).

          Subtitle I--Energy Productivity Innovation Challenge

SEC. 3081. DEFINITIONS.

    In this subtitle:
            (1) Energy productivity.--The term ``energy productivity'' 
        means, in the case of a State or Indian tribe, the gross State 
        or tribal product per British thermal unit of energy consumed 
        in the State or tribal land of the Indian tribe, respectively.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Energy Policy and Conservation Act (42 
        U.S.C. 6202).

SEC. 3082. PHASE 1: INITIAL ALLOCATION OF GRANTS TO STATES.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall issue an invitation to States to 
submit plans to participate in an electric and thermal energy 
productivity challenge in accordance with this section.
    (b) Grants.--
            (1) In general.--Subject to section 3085, the Secretary 
        shall use funds made available under section 3086(b)(1) to 
        provide an initial allocation of grants to not more than 25 
        States.
            (2) Amount.--The amount of a grant provided to a State 
        under this section shall be not less than $500,000 nor more 
        than $1,750,000.
    (c) Submission of Plans.--To receive a grant under this section, 
not later than 90 days after the date of issuance of the invitation 
under subsection (a), a State (in consultation with energy utilities, 
regulatory bodies, and others) shall submit to the Secretary an 
application to receive the grant by submitting a revised State energy 
conservation plan under section 362 of the Energy Policy and 
Conservation Act (42 U.S.C. 6322).
    (d) Decision by Secretary.--
            (1) Basis.--The Secretary shall base the decision of the 
        Secretary on an application submitted under this section on--
                    (A) plans for improvement in electric and thermal 
                energy productivity consistent with this subtitle; and
                    (B) other factors determined appropriate by the 
                Secretary, including geographic diversity.
            (2) Ranking.--The Secretary shall--
                    (A) rank revised plans submitted under this section 
                in order of the greatest to least likely contribution 
                to improving energy productivity in the State; and
                    (B) provide grants under this section in accordance 
                with the ranking and the scale and scope of a plan.
    (e) Plan Requirements.--A plan submitted under subsection (c) shall 
provide--
            (1) a description of the manner in which--
                    (A) energy savings will be monitored and verified 
                and energy productivity improvements will be calculated 
                using inflation-adjusted dollars;
                    (B) a statewide baseline of energy use and 
                potential resources for calendar year 2010 will be 
                established to measure improvements;
                    (C) the plan will promote achievement of energy 
                savings and demand reduction goals;
                    (D) public and private sector investments in energy 
                efficiency will be leveraged with available Federal 
                funding; and
                    (E) the plan will not cause cost-shifting among 
                utility customer classes or negatively impact low-
                income populations; and
            (2) an assurance that--
                    (A) the State energy office required to submit the 
                plan, the energy utilities in the State participating 
                in the plan, and the State public service commission 
                are cooperating and coordinating programs and 
                activities under this subtitle;
                    (B) the State is cooperating with local units of 
                government, Indian tribes, and energy utilities to 
                expand programs as appropriate; and
                    (C) grants provided under this subtitle will be 
                used to supplement and not supplant Federal, State, or 
                ratepayer-funded programs or activities in existence on 
                the date of enactment of this Act.
    (f) Uses.--A State may use grants provided under this section to 
promote--
            (1) the expansion of policies and programs that will 
        advance industrial energy efficiency, waste heat recovery, 
        combined heat and power, and waste heat-to-power utilization;
            (2) the expansion of policies and programs that will 
        advance energy efficiency construction and retrofits for public 
        and private commercial buildings (including schools, hospitals, 
        and residential buildings, including multifamily buildings) 
        such as through expanded energy service performance contracts, 
        equivalent utility energy service contracts, zero net-energy 
        buildings, and improved building energy efficiency codes;
            (3) the expansion of residential policies and programs 
        designed to implement best practice policies and tools for 
        residential retrofit programs that--
                    (A) reduce administrative and delivery costs for 
                energy efficiency projects;
                    (B) encourage streamlining and automation to 
                support contractor engagement; and
                    (C) implement systems that encourage private 
                investment and market innovation;
            (4) the establishment or expansion of incentives in the 
        electric utility sector to enhance demand response and energy 
        efficiency, including consideration of additional incentives to 
        promote the purposes of section 111(d) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)), such as 
        appropriate, cost-effective policies regarding rate structures, 
        grid improvements, behavior change, combined heat and power and 
        waste heat-to-power incentives, financing of energy efficiency 
        programs, data use incentives, district heating, and regular 
        energy audits; and
            (5) leadership by example, in which State activities 
        involving both facilities and vehicle fleets can be a model for 
        other action to promote energy efficiency and can be expanded 
        with Federal grants provided under this subtitle.

SEC. 3083. PHASE 2: SUBSEQUENT ALLOCATION OF GRANTS TO STATES.

    (a) Reports.--Not later than 18 months after the receipt of grants 
under section 3082, each State (in consultation with other parties 
described in subsection (b)(3)(F)) that received grants under section 
3082 may submit to the Secretary a report that describes--
            (1) the performance of the programs and activities carried 
        out with the grants; and
            (2) in consultation with other parties described in 
        subsection (b)(3)(F), the manner in which additional funds 
        would be used to carry out programs and activities to promote 
        the purposes of this subtitle.
    (b) Grants.--
            (1) In general.--Not later than 180 days after the date of 
        the receipt of the reports required under subsection (a), 
        subject to section 3085, the Secretary shall use amounts made 
        available under section 3086(b)(2) to provide grants to not 
        more than 6 States to carry out the programs and activities 
        described in subsection (a)(2).
            (2) Amount.--The amount of a grant provided to a State 
        under this section shall be not more than $15,000,000.
            (3) Basis.--The Secretary shall base the decision of the 
        Secretary to provide grants under this section on--
                    (A) the performance of the State in the programs 
                and activities carried out with grants provided under 
                section 3082;
                    (B) the potential of the programs and activities 
                described in subsection (a)(2) to achieve the purposes 
                of this subtitle;
                    (C) the desirability of maintaining a total project 
                portfolio that is geographically and functionally 
                diverse;
                    (D) the amount of non-Federal funds that are 
                leveraged as a result of the grants to ensure that 
                Federal dollars are leveraged effectively;
                    (E) plans for continuation of the improvements 
                after the receipt of grants under this subtitle; and
                    (F) demonstrated effort by the State to involve 
                diverse groups, including--
                            (i) investor-owned, cooperative, and public 
                        power utilities;
                            (ii) local governments; and
                            (iii) nonprofit organizations.

SEC. 3084. ALLOCATION OF GRANTS TO INDIAN TRIBES.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall invite Indian tribes to submit plans 
to participate in an electric and thermal energy productivity challenge 
in accordance with this section.
    (b) Submission of Plans.--To receive a grant under this section, 
not later than 90 days after the date of issuance of the invitation 
under subsection (a), an Indian tribe shall submit to the Secretary a 
plan to increase electric and thermal energy productivity by the Indian 
tribe.
    (c) Decision by Secretary.--
            (1) In general.--Not later than 90 days after the 
        submission of plans under subsection (b), the Secretary shall 
        make a final decision on the allocation of grants under this 
        section.
            (2) Basis.--The Secretary shall base the decision of the 
        Secretary under paragraph (1) on--
                    (A) plans for improvement in electric and thermal 
                energy productivity consistent with this subtitle;
                    (B) plans for continuation of the improvements 
                after the receipt of grants under this subtitle; and
                    (C) other factors determined appropriate by the 
                Secretary, including--
                            (i) geographic diversity; and
                            (ii) size differences among Indian tribes.
            (3) Limitation.--An individual Indian tribe shall not 
        receive more than 20 percent of the total amount available to 
        carry out this section.

SEC. 3085. ADMINISTRATION.

    (a) Independent Evaluation.--To evaluate program performance and 
effectiveness under this subtitle, the Secretary shall consult with the 
National Research Council regarding requirements for data and 
evaluation for recipients of grants under this subtitle.
    (b) Coordination With State Energy Conservation Programs.--
            (1) In general.--Grants to States under this subtitle shall 
        be provided through additional funding to carry out State 
        energy conservation programs under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
            (2) Relationship to state energy conservation programs.--
                    (A) In general.--A grant provided to a State under 
                this subtitle shall be used to supplement (and not 
                supplant) funds provided to the State under part D of 
                title III of the Energy Policy and Conservation Act (42 
                U.S.C. 6321 et seq.).
                    (B) Minimum funding.--A grant shall not be provided 
                to a State for a fiscal year under this subtitle if the 
                amount of funding provided to all State grantees under 
                the base formula for the fiscal year under part D of 
                title III of the Energy Policy and Conservation Act (42 
                U.S.C. 6321 et seq.) is less than $50,000,000.
    (c) Voluntary Participation.--The participation of a State in a 
challenge established under this subtitle shall be voluntary.

SEC. 3086. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this subtitle $100,000,000 for the period of fiscal years 2016 and 
2017.
    (b) Allocation.--Of the total amount of funds made available under 
subsection (a)--
            (1) 30 percent shall be used to provide an initial 
        allocation of grants to States under section 3082;
            (2) 61 percent shall be used to provide a subsequent 
        allocation of grants to States under section 3083;
            (3) 4 percent shall be used to make grants to Indian tribes 
        under section 3084; and
            (4) 5 percent shall be available to the Secretary for the 
        cost of administration and technical support to carry out this 
        subtitle.

                      Subtitle J--Smart Buildings

SEC. 3091. DEFINITIONS.

    (a) Definitions.--In this section:
            (1) Program.--The term ``program'' means the Federal Smart 
        Building Program established under subsection (b)(1).
            (2) Smart building.--The term ``smart building'' means a 
        building, or collection of buildings, with an energy system 
        that--
                    (A) is flexible and automated;
                    (B) has extensive operational monitoring and 
                communication connectivity, allowing remote monitoring 
                and analysis of all building functions;
                    (C) takes a systems-based approach in integrating 
                the overall building operations for control of energy 
                generation, consumption, and storage;
                    (D) communicates with utilities and other third-
                party commercial entities, if appropriate; and
                    (E) is cybersecure.
            (3) Smart building accelerator.--The term ``smart building 
        accelerator'' means an initiative that is designed to 
        demonstrate specific innovative policies and approaches--
                    (A) with clear goals and a clear timeline; and
                    (B) that, on successful demonstration, would 
                accelerate investment in energy efficiency.
    (b) Federal Smart Building Program.--
            (1) Establishment.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall establish a program 
        to be known as the ``Federal Smart Building Program''--
                    (A) to implement smart building technology; and
                    (B) to demonstrate the costs and benefits of smart 
                buildings.
            (2) Selection.--
                    (A) In general.--The Secretary shall coordinate the 
                selection of not fewer than 1 building from among each 
                of several key Federal agencies, as described in 
                paragraph (4), to compose an appropriately diverse set 
                of smart buildings based on size, type, and geographic 
                location.
                    (B) Inclusion of commercially operated buildings.--
                In making selections under subparagraph (A), the 
                Secretary may include buildings that are owned by the 
                Federal Government but are commercially operated.
            (3) Targets.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall establish targets 
        for the number of smart buildings to be commissioned and 
        evaluated by key Federal agencies by 3 years and 6 years after 
        the date of enactment of this Act.
            (4) Federal agency described.--The key Federal agencies 
        referred to in this subsection shall include buildings operated 
        by--
                    (A) the Department of the Army;
                    (B) the Department of the Navy;
                    (C) the Department of the Air Force;
                    (D) the Department;
                    (E) the Department of the Interior;
                    (F) the Department of Veterans Affairs; and
                    (G) the General Services Administration.
            (5) Requirement.--In implementing the program, the 
        Secretary shall leverage existing financing mechanisms 
        including energy savings performance contracts, utility energy 
        service contracts, and annual appropriations.
            (6) Evaluation.--Using the guidelines of the Federal Energy 
        Management Program relating to whole-building evaluation, 
        measurement, and verification, the Secretary shall evaluate the 
        costs and benefits of the buildings selected under paragraph 
        (2), including an identification of--
                    (A) which advanced building technologies--
                            (i) are most cost-effective; and
                            (ii) show the most promise for--
                                    (I) increasing building energy 
                                savings;
                                    (II) increasing service performance 
                                to building occupants;
                                    (III) reducing environmental 
                                impacts; and
                                    (IV) establishing cybersecurity; 
                                and
                    (B) any other information the Secretary determines 
                to be appropriate.
            (7) Awards.--The Secretary may expand awards made under the 
        Federal Energy Management Program and the Better Building 
        Challenge to recognize specific agency achievements in 
        accelerating the adoption of smart building technologies.
    (c) Survey of Private Sector Smart Buildings.--
            (1) Survey.--The Secretary shall conduct a survey of 
        privately owned smart buildings throughout the United States, 
        including commercial buildings, laboratory facilities, 
        hospitals, multifamily residential buildings, and buildings 
        owned by nonprofit organizations and institutions of higher 
        education.
            (2) Selection.--From among the smart buildings surveyed 
        under paragraph (1), the Secretary shall select not fewer than 
        1 building each from an appropriate range of building sizes, 
        types, and geographic locations.
            (3) Evaluation.--Using the guidelines of the Federal Energy 
        Management Program relating to whole-building evaluation, 
        measurement, and verification, the Secretary shall evaluate the 
        costs and benefits of the buildings selected under paragraph 
        (2), including an identification of--
                    (A) which advanced building technologies and 
                systems--
                            (i) are most cost-effective; and
                            (ii) show the most promise for--
                                    (I) increasing building energy 
                                savings;
                                    (II) increasing service performance 
                                to building occupants;
                                    (III) reducing environmental 
                                impacts; and
                                    (IV) establishing cybersecurity; 
                                and
                    (B) any other information the Secretary determines 
                to be appropriate.
    (d) Leveraging Existing Programs.--
            (1) Better building challenge.--As part of the Better 
        Building Challenge of the Department, the Secretary, in 
        consultation with major private sector property owners, shall 
        develop smart building accelerators to demonstrate innovative 
        policies and approaches that will accelerate the transition to 
        smart buildings in the public, institutional, and commercial 
        buildings sectors.
            (2) Research and development.--
                    (A) In general.--The Secretary shall conduct 
                research and development to address key barriers to the 
                integration of advanced building technologies and to 
                accelerate the transition to smart buildings.
                    (B) Inclusion.--The research and development 
                conducted under subparagraph (A) shall include research 
                and development on--
                            (i) achieving whole-building, systems-level 
                        efficiency through smart system and component 
                        integration;
                            (ii) improving physical components, such as 
                        sensors and controls, to be adaptive, 
                        anticipatory, and networked;
                            (iii) reducing the cost of key components 
                        to accelerate the adoption of smart building 
                        technologies;
                            (iv) data management, including the capture 
                        and analysis of data and the interoperability 
                        of the energy systems;
                            (v) protecting against cybersecurity 
                        threats and addressing security vulnerabilities 
                        of building systems or equipment;
                            (vi) business models, including how 
                        business models may limit the adoption of smart 
                        building technologies and how to support 
                        transactive energy;
                            (vii) integration and application of 
                        combined heat and power systems and energy 
                        storage for resiliency;
                            (viii) characterization of buildings and 
                        components;
                            (ix) consumer and utility protections;
                            (x) continuous management, including the 
                        challenges of managing multiple energy systems 
                        and optimizing systems for disparate 
                        stakeholders; and
                            (xi) other areas of research and 
                        development, as determined appropriate by the 
                        Secretary.
    (e) Report.--Not later than 2 years after the date of enactment of 
this Act, and every 2 years thereafter until a total of 3 reports have 
been made, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report on--
            (1) the establishment of the Federal Smart Building Program 
        and the evaluation of Federal smart buildings under subsection 
        (b);
            (2) the survey and evaluation of private sector smart 
        buildings under subsection (c); and
            (3) any recommendations of the Secretary to further 
        accelerate the transition to smart buildings.

                        Subtitle K--Energy Study

SEC. 3101. ENERGY INFORMATION STUDY.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Secretary shall complete a study, with opportunity for 
public comment--
            (1) on the impact of--
                    (A) State and local performance benchmarking and 
                disclosure policies, and any associated building 
                efficiency policies, for commercial and multifamily 
                buildings; and
                    (B) programs and systems in which utilities provide 
                aggregated information regarding whole building energy 
                consumption and usage information to owners of 
                multitenant commercial, residential, and mixed-use 
                buildings;
            (2) that identifies best practice policy approaches studied 
        under paragraph (1) that have resulted in the greatest 
        improvements in building energy efficiency; and
            (3) that considers--
                    (A) compliance rates and the benefits and costs of 
                the policies and programs on building owners, 
                utilities, tenants, and other parties;
                    (B) utility practices, programs, and systems that 
                provide aggregated energy consumption information to 
                multitenant building owners, and the impact of public 
                utility commissions and State privacy laws on those 
                practices, programs, and systems;
                    (C) exceptions to compliance in existing laws where 
                building owners are not able to gather or access whole 
                building energy information from tenants or utilities;
                    (D) the treatment of buildings with--
                            (i) multiple uses;
                            (ii) uses for which baseline information is 
                        not available; and
                            (iii) uses that require high levels of 
                        energy intensities, such as data centers, 
                        trading floors, and television studios;
                    (E) implementation practices, including disclosure 
                methods and phase-in of compliance;
                    (F) the safety and security of benchmarking tools 
                offered by government agencies, and the resiliency of 
                those tools against cyber attacks; and
                    (G) international experiences with regard to 
                building benchmarking and disclosure laws and data 
                aggregation for multitenant buildings.
    (b) Submission to Congress.--At the conclusion of the study, the 
Secretary shall submit to Congress a report on the results of the 
study.

SEC. 3102. GRANTS TO UTILITIES.

    (a) Grants to Utilities.--Based on the results of the research for 
the portion of the study described in section 3101(a)(1)(B), and with 
criteria developed following public notice and comment, the Secretary 
may make competitive awards to utilities, utility regulators, and 
utility partners to develop and implement effective and promising 
programs to provide aggregated whole building energy consumption 
information to multitenant building owners.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2016 through 2020, to remain available until expended.

SEC. 3103. GRANTS TO STATES AND UNITS OF LOCAL GOVERNMENT.

    (a) Grants to Utilities.--Based on the results of the research for 
the portion of the study described in section 3101(a)(1)(B), and with 
criteria developed following public notice and comment, the Secretary 
may make competitive awards to States and units of local government to 
develop and implement effective and promising benchmarking and 
disclosure policies, and any associated building efficiency policies, 
for commercial and multifamily buildings.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2016 through 2020, to remain available until expended.

SEC. 3104. INPUT FROM STAKEHOLDERS.

    The Secretary shall seek input from stakeholders to maximize the 
effectiveness of the actions taken under this subtitle.

SEC. 3105. REPORT.

    Not later than 2 years after the date of enactment of this Act, and 
every 2 years thereafter, the Secretary shall submit to Congress a 
report on the progress made in complying with this subtitle.

                Subtitle L--Alternative Fueled Vehicles

SEC. 3111. ALTERNATIVE FUELED VEHICLE FLEETS AND INFRASTRUCTURE.

    (a) Utility Incentive Programs.--Section 546(c)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8256(c)(1)) is amended by 
inserting ``(including measures to support the use of alternative 
fueled vehicles (as defined in section 400AA(g) of the Energy Policy 
and Conservation Act (42 U.S.C. 6374(g))) or the fueling or charging 
infrastructure necessary for those vehicles)'' after ``demand''.
    (b) Energy Savings Performance Contracts.--
            (1) Authority to enter contracts.--Section 801(a)(2)(B) of 
        the National Energy Conservation Policy Act (42 U.S.C. 
        8287(a)(2)(B)) is amended in the first sentence by inserting 
        ``or petroleum'' after ``utilities''.
            (2) Payment of costs.--Section 802 of the National Energy 
        Conservation Policy Act (42 U.S.C. 8287a) is amended by 
        inserting ``petroleum,'' after ``water,''.
            (3) Definitions.--Section 804 of the National Energy 
        Conservation Policy Act (42 U.S.C. 8287c) is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (C), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(E) a reduction in the use of petroleum through 
                the use of alternative fueled vehicles or the fueling 
                or charging infrastructure necessary for alternative 
                fueled vehicles, including the use of contracts to 
                support alternative fueled vehicles or 
                infrastructure.'';
                    (B) in paragraph (4)--
                            (i) in subparagraph (A), by striking ``or'' 
                        after the semicolon;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(C) a measure to support the use of alternative 
                fueled vehicles or the fueling or charging 
                infrastructure necessary for alternative fueled 
                vehicles, including the use of contracts to support 
                alternative fueled vehicles or infrastructure.'';
                    (C) by redesignating paragraphs (1), (2), (3), and 
                (4), as paragraphs (5), (3), (4), and (2), 
                respectively, and moving so as to appear in numerical 
                order; and
                    (D) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) Alternative fueled vehicle.--The term `alternative 
        fueled vehicle' has the meaning given the term in section 
        400AA(g) of the Energy Policy and Conservation Act (42 U.S.C. 
        6374(g)).''.

                  Subtitle M--Outer Continental Shelf

SEC. 3121. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS 
              ROYALTY RELIEF.

    (a) In General.--Sections 344 and 345 of the Energy Policy Act of 
2005 (42 U.S.C. 15904, 15905) are repealed.
    (b) Administration.--The Secretary of the Interior shall not be 
required to provide for royalty relief in the lease sale terms 
beginning with the first lease sale held on or after the date of 
enactment of this Act for which a final notice of sale has not been 
published.

SEC. 3122. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES 
              FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 PLANNING 
              AREAS OF GULF OF MEXICO.

    Section 105 of the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note) is amended to read as follows:

``SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES 
              FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 PLANNING 
              AREAS OF GULF OF MEXICO.

    ``Notwithstanding section 9 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1338) and subject to the other provisions of this 
section, for each applicable fiscal year, the Secretary of the Treasury 
shall deposit--
            ``(1) 87.5 percent of qualified outer Continental Shelf 
        revenues in the general fund of the Treasury; and
            ``(2) 12.5 percent of qualified outer Continental Shelf 
        revenues in a special account in the Land and Water 
        Conservation Fund established under section 200302 of title 54, 
        United States Code, from which the Secretary shall disburse, 
        without further appropriation, 100 percent to provide financial 
        assistance to States in accordance with section 200305 of that 
        title, which shall be considered income to the Land and Water 
        Conservation Fund for purposes of section 200302 of that 
        title.''.

                 Subtitle N--Venting and Flaring of Gas

SEC. 3131. REGULATIONS TO PREVENT OR MINIMIZE VENTING AND FLARING OF 
              GAS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior shall issue 
regulations under this subtitle--
            (1) to prevent or minimize the venting and flaring of gas 
        in oil and gas production operations on Federal land onshore 
        and offshore in the United States; and
            (2) to promote the capture and beneficial use or 
        reinjection of gas in the operations referred to in paragraph 
        (1).
    (b) Royalties.--A regulation issued under this section shall 
include provisions that treat gas that is flared or vented in 
operations under a lease under this subtitle as production for which 
royalty is required to be paid to the United States.
    (c) Limitation on Application to Existing Leases.--Regulations 
issued under subsection (a) shall not apply with respect to production 
under a lease in effect on the date of enactment of this Act to the 
extent such application would constitute a breach of the terms of the 
lease by the United States.

SEC. 3132. ASSESSMENT OF VENTING AND FLARING OF GAS IN PRODUCTION 
              OPERATIONS IN UNITED STATES.

    Not later than 18 months after the date of enactment of this Act, 
the Comptroller General of the United States shall--
            (1) assess the venting and flaring of gas in oil and gas 
        production operations on Federal land onshore and offshore in 
        the United States; and
            (2) submit to Congress a report on the venting and flaring 
        of gas in oil and gas production operations on Federal land 
        onshore and offshore in the United States, including an 
        estimate of the volume of gas that is vented or flared in such 
        operations each year.

SEC. 3133. REGULATIONS.

    The Secretary of the Interior shall issue regulations that define 
the terms ``vent'', ``venting'', ``flare'', and ``flaring'' for 
purposes of this subtitle.

                  Subtitle O--Production Incentive Fee

SEC. 3141. PRODUCTION INCENTIVE FEE.

    (a) Establishment.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of the Interior (referred 
        to in this section as the ``Secretary'') shall issue 
        regulations to establish an annual production incentive fee 
        with respect to Federal onshore and offshore land that is 
        subject to a lease for production of oil or natural gas under 
        which production is not occurring.
            (2) Application.--The annual production incentive fee 
        described in paragraph (1) shall apply with respect to land 
        that is subject to a lease described in paragraph (1) that is--
                    (A) in effect on the date on which final 
                regulations are issued pursuant to this subsection; or
                    (B) executed after that date.
    (b) Amount.--For each acre of land from which oil or natural gas is 
produced for less than 90 days in a calendar year, the amount of the 
fee shall be--
            (1) in the case of onshore land--
                    (A) for each of the first 3 years of the lease, $4 
                per acre (in 2015 dollars);
                    (B) for the fourth year of the lease, $6 per acre 
                (in 2015 dollars); and
                    (C) for the fifth year of the lease and each year 
                thereafter for which the lease is otherwise in effect, 
                $8 per acre (in 2015 dollars); and
            (2) in the case of offshore land--
                    (A) for each of the third, fourth, and fifth years 
                of the lease, $4 per acre (in 2015 dollars);
                    (B) for the sixth year of the lease, $6 per acre 
                (in 2015 dollars); and
                    (C) for the seventh year of the lease and each year 
                thereafter for which the lease is otherwise in effect, 
                $8 per acre (in 2015 dollars).
    (c) Assessment and Collection.--The Secretary shall assess and 
collect the fee established under this section.
    (d) Deposit.--Amounts received by the Secretary for the fee under 
this section shall be reserved for the Secretary for expenditures on 
inspection, enforcement, and permitting relating to oil and gas.
    (e) Regulations.--The Secretary may issue regulations to prevent 
evasion of the fee under this section.

            Subtitle P--Reauthorization of Desalination Act

SEC. 3151. REAUTHORIZATION OF DESALINATION ACT.

    (a) Definitions.--Section 2 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104-298) is amended--
            (1) by redesignating paragraphs (1), (2), (3), (4), and (5) 
        as paragraphs (2), (3), (5), (6), and (4), respectively, and 
        moving the paragraphs so as to appear in numerical order; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.''.
    (b) Authorization of Research and Studies.--Section 3 of the Water 
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is 
amended by adding at the end the following:
    ``(e) Prioritization.--In carrying out this section, the Secretary 
of the Interior shall prioritize funding for research--
            ``(1) to reduce energy consumption and lower the cost of 
        seawater and brackish water desalination;
            ``(2) to reduce the environmental impacts of seawater 
        desalination and develop technology and strategies to minimize 
        those impacts;
            ``(3) to improve existing reverse osmosis and membrane 
        technology;
            ``(4) to carry out basic and applied research on next 
        generation desalination technologies, including graphene 
        membranes, forward osmosis, hybrid membrane-thermal 
        desalination, improved energy recovery systems, and renewable 
        energy-powered desalination systems that could significantly 
        reduce desalination costs; and
            ``(5) to develop portable or modular desalination units 
        capable of providing temporary emergency water supplies for 
        domestic or military deployment purposes.''.
    (c) Desalination Demonstration and Development.--Section 4 of the 
Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-
298) is amended by adding at the end the following:
    ``(c) Prioritization.--In carrying out demonstration and 
development activities under this section, the Secretary shall 
prioritize projects--
            ``(1) in drought-stricken States and communities;
            ``(2) in States that have authorized funding for research 
        and development of desalination technologies and projects; and
            ``(3) that can reduce reliance on imported water supplies 
        that have an impact on species listed under the Endangered 
        Species Act of 1973 (16 U.S.C. 1531 et seq.).''.
    (d) Authorization of Appropriations.--Section 8 of the Water 
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is 
amended--
            (1) in subsection (a), in the first sentence--
                    (A) by striking ``$5,000,000'' and inserting 
                ``$10,000,000''; and
                    (B) by striking ``2013'' and inserting ``2020''; 
                and
            (2) in subsection (b), by striking ``for each of fiscal 
        years 2012 through 2013'' and inserting ``for each of fiscal 
        years 2016 through 2020''.
    (e) Consultation.--Section 9 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104-298) is amended--
            (1) by striking the section designation and heading and all 
        that follows through ``In carrying out'' in the first sentence 
        and inserting the following:

``SEC. 9. CONSULTATION AND COORDINATION.

    ``(a) Consultation.--In carrying out'';
            (2) in the second sentence, by striking ``The 
        authorization'' and inserting the following:
    ``(c) Other Desalination Programs.--The authorization''; and
            (3) by inserting after subsection (a) (as designated by 
        paragraph (1)) the following:
    ``(b) Coordination of Federal Desalination Research and 
Development.--
            ``(1) In general.--The White House Office of Science and 
        Technology Policy shall develop a coordinated strategic plan 
        that--
                    ``(A) establishes priorities for future Federal 
                investments in desalination; and
                    ``(B) coordinates the activities of Federal 
                agencies involved in desalination, including the Bureau 
                of Reclamation, the National Science Foundation, the 
                Office of Naval Research of the Department of Defense, 
                the National Laboratories of the Department of Energy, 
                the United States Geological Survey, the Environmental 
                Protection Agency, and the National Oceanic and 
                Atmospheric Administration.''.
    (f) Desalination Project Assistance.--The Water Desalination Act of 
1996 (42 U.S.C. 10301 note; Public Law 104-298) is amended by adding at 
the end the following:

``SEC. 10. FEASIBILITY STUDY AND DESIGN ASSISTANCE.

    ``(a) In General.--In order to facilitate the development of water 
desalination projects, the Administrator shall develop and implement a 
program to provide financial assistance to study the feasibility and 
support the design of desalination facilities (including associated 
water distribution infrastructure) that provide usable water.
    ``(b) Feasibility Studies.--
            ``(1) In general.--The Administrator may provide grant 
        assistance to a non-Federal project sponsor to evaluate and 
        determine the feasibility of a public or public-private 
        desalination project.
            ``(2) Federal share.--The Federal share for a feasibility 
        study under paragraph (1) shall not exceed 50 percent of the 
        cost of the study.
            ``(3) Criteria for eligibility.--In carrying out this 
        subsection, the Administrator shall establish criteria to 
        determine projects eligible for grant funding based on the 
        ability of the projects to provide regional water supply 
        benefits, including--
                    ``(A) improving water supply reliability in regions 
                subject to frequent and severe drought;
                    ``(B) enhancement of public health, safety, 
                ecosystems, and watershed sustainability;
                    ``(C) preservation of groundwater through reduction 
                of withdrawals from aquifers;
                    ``(D) offsetting demand for water conveyed from 
                environmentally sensitive areas outside service area of 
                the project; and
                    ``(E) mitigation of saltwater intrusion to 
                aquifers.
    ``(c) Project Design.--
            ``(1) In general.--The Administrator may provide grant 
        assistance to a non-Federal project sponsor for the design of a 
        public or public-private desalination project.
            ``(2) Federal share.--The Federal share for project design 
        under paragraph (1) shall not exceed 25 percent of the cost of 
        project design of the project.
            ``(3) Criteria for eligibility.--In carrying out this 
        subsection, the Administrator shall establish criteria to 
        determine projects eligible for grant funding, including--
                    ``(A) completion of a feasibility study described 
                in subsection (b);
                    ``(B) demonstration of technical feasibility and 
                cost effectiveness;
                    ``(C) completion of all required State and Federal 
                environmental impact analyses;
                    ``(D) receipt of all necessary local, State, and 
                Federal permits;
                    ``(E) demonstration of financial capability of non-
                Federal project sponsors;
                    ``(F) quantification and net cost of water produced 
                by the project; and
                    ``(G) identification of users of produced water 
                supply, including water purchase agreements and other 
                contractually binding mechanisms.
    ``(d) Guidance.--Not later than 180 days after the date of 
enactment of this section, the Administrator shall publish appropriate 
guidance to implement this section.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2016 through 2020, to remain available until expended.
    ``(f) Report on Desalination Technology.--Not later than 90 days 
after the date of enactment of this section, the Secretary of the Navy 
shall submit to Congress a report on the application of desalinization 
technology for defense and national security purposes to provide 
drought relief to areas impacted by sharp declines in water supply.''.

SEC. 3152. PROMOTING WATER EFFICIENCY WITH WATERSENSE.

    (a) In General.--There is established within the Environmental 
Protection Agency a program, to be known as the ``WaterSense Program'', 
to identify and promote water efficient products, buildings, 
landscapes, facilities, processes, and services--
            (1) to reduce water use;
            (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;
            (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
            (4) to preserve water resources for future generations 
        through voluntary labeling of, or other forms of communications 
        regarding, products, buildings, landscapes, facilities, 
        processes, and services that meet the highest water efficiency 
        and performance criteria.
    (b) Duties.--The Administrator of the Environmental Protection 
Agency (referred to in this section as the ``Administrator'') shall--
            (1) establish--
                    (A) a WaterSense label to be used for certain 
                items; and
                    (B) the procedure by which an item may be certified 
                to display the WaterSense label;
            (2) promote WaterSense-labeled products, buildings, 
        landscapes, facilities, processes, and services in the 
        marketplace as the preferred technologies and services for--
                    (A) reducing water use; and
                    (B) ensuring product and service performance;
            (3) work to enhance public awareness of the WaterSense 
        label through public outreach, education, and other means;
            (4) preserve the integrity of the WaterSense label by--
                    (A) establishing and maintaining performance 
                criteria so that products, buildings, landscapes, 
                facilities, processes, and services labeled with the 
                WaterSense label perform as well as, or better than, 
                less water-efficient counterparts;
                    (B) overseeing WaterSense certifications made by 
                third parties;
                    (C) conducting reviews of the use of the WaterSense 
                label in the marketplace and taking corrective action 
                in any case in which misuse of the label is identified; 
                and
                    (D) carrying out such other measures as the 
                Administrator determines to be appropriate;
            (5) at least once every 6 years, review and, if 
        appropriate, update WaterSense criteria for categories of 
        products, buildings, landscapes, facilities, processes, and 
        services;
            (6) to the maximum extent practicable, at least annually 
        estimate and make available to the public the production and 
        relative market shares of, and the savings of water, energy, 
        and capital costs of water, wastewater, and stormwater 
        infrastructure attributable to the use of WaterSense-labeled 
        products, buildings, landscapes, facilities, processes, and 
        services;
            (7) solicit comments from interested parties and the public 
        prior to establishing or revising a WaterSense category, 
        specification, installation criterion, or other criterion;
            (8) provide reasonable notice to interested parties and the 
        public of any changes (including effective dates), on the 
        adoption of a new or revised category, specification, 
        installation criterion, or other criterion, along with--
                    (A) an explanation of the changes; and
                    (B) as appropriate, responses to comments submitted 
                by interested parties and the public;
            (9) provide appropriate lead time (as determined by the 
        Administrator) prior to the applicable effective date for a new 
        or significant revision to a category, specification, 
        installation criterion, or other criterion, taking into account 
        the timing requirements of the manufacturing, marketing, 
        training, and distribution process for the specific product, 
        building and landscape, or service category addressed;
            (10) identify and, if appropriate, implement other 
        voluntary approaches in commercial, institutional, residential, 
        industrial, and municipal sectors to encourage recycling and 
        reuse technologies to improve water efficiency or lower water 
        use; and
            (11) if appropriate, authorize the WaterSense label for use 
        on products that are labeled by the Energy Star program 
        implemented by the Administrator and the Secretary of Energy.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $5,000,000 for fiscal year 2016;
            (2) $5,000,000 for fiscal year 2017;
            (3) $5,000,000 for fiscal year 2018;
            (4) $5,000,000 for fiscal year 2019; and
            (5) for each fiscal year thereafter, the applicable amount 
        for the preceding fiscal year, as adjusted to reflect changes 
        for the 12-month period ending the preceding November 30 in the 
        Consumer Price Index for All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.

SEC. 3153. INCREASING OPPORTUNITIES FOR AGRICULTURAL CONSERVATION.

    (a) In General.--The Secretary of the Interior (referred to in this 
section as the ``Secretary'') shall offer to enter into voluntary 
agreements with public water agencies or other entities that receive 
water from any project operated by the Bureau of Reclamation to 
implement water conservation programs.
    (b) Uses of Conserved Water.--
            (1) In general.--Except as provided in paragraph (2), of 
        the quantity of water conserved as a result of an agreement 
        entered into pursuant to subsection (a)--
                    (A) 25 percent shall be retained by the public 
                water agency or entity with which the Secretary has 
                entered into the agreement; and
                    (B) 75 percent shall be retained by the Secretary, 
                of which--
                            (i) 33 percent shall be used or marketed on 
                        an annual basis for purposes that will promote 
                        groundwater recharge and conservation; and
                            (ii) 67 percent shall be used on an annual 
                        basis for refuge water supply or other 
                        authorized project purposes.
            (2) Exceptions.--For good reason in a particular instance, 
        the Secretary and the public water agency or entity with which 
        the Secretary has entered into an agreement may agree to modify 
        the percentages referred to in paragraph (1).
    (c) Contributed Funds.--
            (1) In general.--Any existing water service or repayment 
        contractor within the project service area of a water 
        conservation agreement under this section may contribute funds 
        for the implementation of the agreement.
            (2) Action by secretary.--The Secretary shall provide to 
        each contractor that contributes funds under paragraph (1) such 
        portion of the water described in subsection (b)(1)(B)(ii) as 
        the Secretary determines to be appropriate, but not to exceed 
        the proportion of funds contributed by the contractor.
            (3) Additional water.--If a contractor contributes more 
        than 50 percent of the cost of a project carried out under an 
        agreement under this section, the Secretary may enter into an 
        agreement with the contractor to provide to the contractor such 
        portion of the water described in subsection (b)(1)(B)(i) for 
        groundwater recharge and conservation as the Secretary 
        determines to be appropriate, subject to the condition that the 
        contractor shall not receive a higher proportion of the water 
        conserved than the proportion of funds contributed by the 
        contractor.

SEC. 3154. SUPPORT FOR INNOVATIVE WATER SUPPLY AND CONSERVATION 
              TECHNOLOGIES.

    (a) In General.--To promote the development of innovative water 
supply and conservation technologies, the Administrator of the 
Environmental Protection Agency (referred to in this section as the 
``Administrator'') may award, on a competitive basis, grants and enter 
into contracts to assist in the financing of research and demonstration 
projects for those innovative technologies.
    (b) Eligible Entities.--To be eligible to receive an award under 
this section, an entity shall be--
            (1) a local entity;
            (2) a public nonprofit institution or organization;
            (3) a commercial entity;
            (4) a federally recognized Indian tribe; or
            (5) a nonprofit institution or organization.
    (c) Eligibility Criteria.--The Administrator shall establish 
criteria for an entity described in subsection (b) to be eligible to 
receive a grant from, or enter into a contract with, the Administrator 
under this section, including--
            (1) demonstration of the technical feasibility of the 
        proposal and the qualifications of the entity to carry out the 
        proposal;
            (2) demonstration of the financial capability and 
        creditworthiness of non-Federal project sponsors;
            (3) compliance with all applicable laws and receipt of all 
        necessary local, State, and Federal permits; and
            (4) quantification of the estimated water to be produced or 
        saved by the project and the net cost of the project.
    (d) Evaluation Criteria.--The Administrator shall establish 
criteria for evaluating on a competitive basis eligible applicants 
under this section, including the degree to which the proposed 
technology--
            (1) proposes an innovation that has broad, fundamental 
        implications for water savings or water supply;
            (2) is economically feasible;
            (3) could reduce the costs of water supply, including 
        reductions in associated energy costs;
            (4) would solve environmental concerns or provide 
        environmental benefits;
            (5) has a proof of concept, and a likely path to success 
        within a reasonable timeframe; and
            (6) is aimed at the development of a specific water saving 
        or water supply application, as opposed to basic research aimed 
        at discovery and fundamental knowledge generation.
    (e) Authority to Engage Others.--
            (1) In general.--In carrying out research under this 
        section, the Administrator may engage such personnel, 
        industrial or engineering entities, Federal laboratories, water 
        resources research and technology institutions, other 
        facilities, and educational institutions as the Administrator 
        determines to be necessary.
            (2) Technical and administrative assistance.--The 
        Administrator may--
                    (A) accept technical and administrative assistance 
                from States and public or private agencies in 
                connection with studies, surveys, location, 
                construction, operation, and other work relating to the 
                desalting of water; and
                    (B) enter into contracts or agreements that--
                            (i) establish the purposes for which the 
                        assistance is contributed; and
                            (ii) provide for the sharing of costs 
                        between the Administrator and any such agency.
    (f) Cost Sharing.--
            (1) Federal cost share.--Subject to paragraph (2), the 
        Federal share of the cost of a project under this section shall 
        not exceed 25 percent, unless the Administrator determines that 
        the project is not feasible without an increased Federal 
        contribution.
            (2) Maximum federal cost share.--Notwithstanding paragraph 
        (1), the Federal share of the cost of a project under this 
        section shall not exceed 50 percent of the total project cost.
            (3) Procedures for allocating costs.--
                    (A) In general.--The Administrator shall prescribe 
                appropriate procedures to implement this section.
                    (B) Non-federal costs.--The costs of operation, 
                maintenance, repair, and rehabilitation of any facility 
                funded under this section shall be a non-Federal 
                responsibility.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $35,000,000 for the period of 
fiscal years 2016 through 2020.

            TITLE IV--INVESTING IN RESEARCH AND DEVELOPMENT

SEC. 4001. BASIC RESEARCH.

    Section 971(b) of the Energy Policy Act of 2005 (42 U.S.C. 
16311(b)) is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) $15,000,000,000 for each of fiscal years 2016 through 
        2020.''.

SEC. 4002. ADVANCED RESEARCH PROJECTS AGENCY-ENERGY.

    Section 5012 of the America COMPETES Act (42 U.S.C. 16538) is 
amended--
            (1) in subsection (a)(3), by striking ``subsection (n)(1)'' 
        and inserting ``subsection (o)(1)'';
            (2) in subsection (i), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--To the maximum extent practicable, the 
        Director shall ensure that--
                    ``(A) the activities of ARPA-E are coordinated 
                with, and do not duplicate the efforts of, programs and 
                laboratories within the Department and other relevant 
                research agencies; and
                    ``(B) ARPA-E does not provide funding for a project 
                unless the prospective grantee demonstrates sufficient 
                attempts to secure private financing or indicates that 
                the project is not independently commercially 
                viable.'';
            (3) by redesignating subsection (n) as subsection (o);
            (4) by inserting after subsection (m) the following:
    ``(n) Protection of Information.--The following types of 
information collected by the ARPA-E from recipients of financial 
assistance awards shall be considered privileged and confidential and 
not subject to disclosure under section 552 of title 5, United States 
Code:
            ``(1) Plans for commercialization of technologies developed 
        under the award, including business plans, technology-to-market 
        plans, market studies, and cost and performance models.
            ``(2) Investments provided to an awardee from third parties 
        (such as venture capital firms, hedge funds, and private equity 
        firms), including amounts and the percentage of ownership of 
        the awardee provided in return for the investments.
            ``(3) Additional financial support that the awardee--
                    ``(A) plans to or has invested into the technology 
                developed under the award; or
                    ``(B) is seeking from third parties.
            ``(4) Revenue from the licensing or sale of new products or 
        services resulting from research conducted under the award.''; 
        and
            (5) in subsection (o) (as redesignated by paragraph (3))--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``paragraphs (4) and (5)'' and 
                        inserting ``paragraph (4)'';
                            (ii) in subparagraph (D), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (E), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(F) $1,000,000, 000 for each of fiscal years 2016 
                through 2020.''; and
                    (B) in paragraph (4)(B), by striking ``(c)(2)(D)'' 
                and inserting ``(c)(2)(C)''.

                   TITLE V--INVESTING IN CLEAN ENERGY

SEC. 5001. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

                  Subtitle A--Clean Energy Tax Credits

SEC. 5011. CLEAN ENERGY PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 45S. CLEAN ENERGY PRODUCTION CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the clean 
        energy production credit for any taxable year is an amount 
        equal to the product of--
                    ``(A) the applicable credit rate (as determined 
                under paragraph (2)), multiplied by
                    ``(B) the kilowatt hours of electricity--
                            ``(i) produced by the taxpayer at a 
                        qualified facility, and
                            ``(ii)(I) sold by the taxpayer to an 
                        unrelated person during the taxable year, or
                            ``(II) in the case of a qualified facility 
                        which is equipped with a metering device which 
                        is owned and operated by an unrelated person, 
                        sold, consumed, or stored by the taxpayer 
                        during the taxable year.
            ``(2) Applicable credit rate.--
                    ``(A) In general.--
                            ``(i) Maximum credit rate.--Except as 
                        provided in clause (ii), the applicable credit 
                        rate is 1.5 cents.
                            ``(ii) Reduction of credit based on 
                        greenhouse gas emission rate.--The applicable 
                        credit rate shall be reduced (but not below 
                        zero) by an amount which bears the same ratio 
                        to the amount in effect under clause (i) as the 
                        greenhouse gas emissions rate for the qualified 
                        facility bears to 372 grams of CO<INF>2</INF>e 
                        per KWh.
                    ``(B) Rounding.--If any amount determined under 
                subparagraph (A)(ii) is not a multiple of 0.1 cent, 
                such amount shall be rounded to the nearest multiple of 
                0.1 cent.
    ``(b) Greenhouse Gas Emissions Rate.--
            ``(1) In general.--For purposes of this section, the term 
        `greenhouse gas emissions rate' means the amount of greenhouse 
        gases emitted into the atmosphere by a qualified facility in 
        the production of electricity, expressed as grams of 
        CO<INF>2</INF>e per KWh.
            ``(2) Non-fossil fuel combustion and gasification.--In the 
        case of a qualified facility which produces electricity through 
        combustion or gasification of a non-fossil fuel, the greenhouse 
        gas emissions rate for such facility shall be equal to the net 
        rate of greenhouse gases emitted into the atmosphere by such 
        facility in the production of electricity, expressed as grams 
        of CO<INF>2</INF>e per KWh.
            ``(3) Establishment of safe harbor for qualified 
        facilities.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator of the Environmental Protection 
                Agency, shall, by regulation, establish safe-harbor 
                greenhouse gas emissions rates for types or categories 
                of qualified facilities, which a taxpayer may elect to 
                use for purposes of this section.
                    ``(B) Rounding.--In establishing the safe-harbor 
                greenhouse gas emissions rates for qualified 
                facilities, the Secretary may round such rates to the 
                nearest multiple of 37.2 grams of CO<INF>2</INF>e per 
                KWh (or, in the case of a greenhouse gas emissions rate 
                which is less than 18.6 grams of CO<INF>2</INF>e per 
                KWh, by rounding such rate to zero).
            ``(4) Carbon capture and sequestration equipment.--For 
        purposes of this subsection, the amount of greenhouse gases 
        emitted into the atmosphere by a qualified facility in the 
        production of electricity shall not include any qualified 
        carbon dioxide (as defined in section 48E(c)(3)(A)) that is 
        captured and disposed of by the taxpayer.
    ``(c) Inflation Adjustment.--
            ``(1) In general.--In the case of a calendar year beginning 
        after 2018, the 1.5 cent amount in clause (i) of subsection 
        (a)(2)(A) shall be adjusted by multiplying such amount by the 
        inflation adjustment factor for the calendar year in which the 
        sale or use of the electricity occurs. If any amount as 
        increased under the preceding sentence is not a multiple of 0.1 
        cent, such amount shall be rounded to the nearest multiple of 
        0.1 cent.
            ``(2) Annual computation.--The Secretary shall, not later 
        than April 1 of each calendar year, determine and publish in 
        the Federal Register the inflation adjustment factor for such 
        calendar year in accordance with this subsection.
            ``(3) Inflation adjustment factor.--The term `inflation 
        adjustment factor' means, with respect to a calendar year, a 
        fraction the numerator of which is the GDP implicit price 
        deflator for the preceding calendar year and the denominator of 
        which is the GDP implicit price deflator for the calendar year 
        1992. The term `GDP implicit price deflator' means the most 
        recent revision of the implicit price deflator for the gross 
        domestic product as computed and published by the Department of 
        Commerce before March 15 of the calendar year.
    ``(d) Credit Phase-out.--
            ``(1) In general.--Subject to paragraph (3), if the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, 
        determines that the annual greenhouse gas emissions from 
        electrical production in the United States are equal to or less 
        than 72 percent of the annual greenhouse gas emissions from 
        electrical production in the United States for calendar year 
        2005, the amount of the clean energy production credit under 
        subsection (a) for any qualified facility placed in service 
        during a calendar year described in paragraph (2) shall be 
        equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility placed in service during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 75 percent,
                    ``(B) for a facility placed in service during the 
                second calendar year following such determination year, 
                50 percent,
                    ``(C) for a facility placed in service during the 
                third calendar year following such determination year, 
                25 percent, and
                    ``(D) for a facility placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.
            ``(3) Deadline to begin phase-out.--If the Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, determines that the 
        annual greenhouse gas emissions from electrical production in 
        the United States for each year before calendar year 2026 are 
        greater than the percentage specified in paragraph (1), then 
        the determination described in such paragraph shall be deemed 
        to have been made for calendar year 2025.
    ``(e) Definitions.--In this section:
            ``(1) CO<INF>2</INF>e per kwh.--The term `CO<INF>2</INF>e 
        per KWh' means, with respect to any greenhouse gas, the 
        equivalent carbon dioxide per kilowatt hour of electricity 
        produced.
            ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given such term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(3) Qualified facility.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the term `qualified facility' means a facility 
                which is--
                            ``(i) used for the generation of 
                        electricity, and
                            ``(ii) originally placed in service after 
                        December 31, 2017.
                    ``(B) 10-year production credit.--For purposes of 
                this section, a facility shall only be treated as a 
                qualified facility during the 10-year period beginning 
                on the date the facility was originally placed in 
                service.
                    ``(C) Expansion of facility; incremental 
                production.--A qualified facility shall include either 
                of the following in connection with a facility 
                described in subparagraph (A)(i) that was previously 
                placed in service, but only to the extent of the 
                increased amount of electricity produced at the 
                facility by reason of the following:
                            ``(i) A new unit placed in service after 
                        December 31, 2017.
                            ``(ii) Any efficiency improvements or 
                        additions of capacity placed in service after 
                        December 31, 2017.
                    ``(D) Coordination with other credits.--The term 
                `qualified facility' shall not include any facility for 
                which--
                            ``(i) a renewable electricity production 
                        credit determined under section 45 is allowed 
                        under section 38 for the taxable year or any 
                        prior taxable year,
                            ``(ii) an energy credit determined under 
                        section 48 is allowed under section 38 for the 
                        taxable year or any prior taxable year, or
                            ``(iii) a clean energy investment credit 
                        determined under section 48E is allowed under 
                        section 38 for the taxable year or any prior 
                        taxable year.
    ``(f) Final Guidance.--Not later than January 1, 2017, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of greenhouse gas emission rates 
for qualified facilities and determination of clean energy production 
credits under this section.
    ``(g) Special Rules.--
            ``(1) Only production in the united states taken into 
        account.--Consumption or sales shall be taken into account 
        under this section only with respect to electricity the 
        production of which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(2) Combined heat and power system property.--
                    ``(A) In general.--For purposes of subsection 
                (a)(1)(B), the kilowatt hours of electricity produced 
                by a taxpayer at a qualified facility shall include any 
                production in the form of useful thermal energy by any 
                combined heat and power system property within such 
                facility.
                    ``(B) Combined heat and power system property.--For 
                purposes of this paragraph, the term `combined heat and 
                power system property' has the same meaning given such 
                term by section 48(c)(3) (without regard to 
                subparagraphs (A)(iv), (B), and (D) thereof).
                    ``(C) Conversion from btu to kwh.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the amount of kilowatt hours 
                        of electricity produced in the form of useful 
                        thermal energy shall be equal to the quotient 
                        of--
                                    ``(I) the total useful thermal 
                                energy produced by the combined heat 
                                and power system property within the 
                                qualified facility, divided by
                                    ``(II) the heat rate for such 
                                facility.
                            ``(ii) Heat rate.--For purposes of this 
                        subparagraph, the term `heat rate' means the 
                        amount of energy used by the qualified facility 
                        to generate 1 kilowatt hour of electricity, 
                        expressed as British thermal units per net 
                        kilowatt hour generated.
            ``(3) Production attributable to the taxpayer.--In the case 
        of a qualified facility in which more than 1 person has an 
        ownership interest, except to the extent provided in 
        regulations prescribed by the Secretary, production from the 
        facility shall be allocated among such persons in proportion to 
        their respective ownership interests in the gross sales from 
        such facility.
            ``(4) Related persons.--Persons shall be treated as related 
        to each other if such persons would be treated as a single 
        employer under the regulations prescribed under section 52(b). 
        In the case of a corporation which is a member of an affiliated 
        group of corporations filing a consolidated return, such 
        corporation shall be treated as selling electricity to an 
        unrelated person if such electricity is sold to such a person 
        by another member of such group.
            ``(5) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(6) Allocation of credit to patrons of agricultural 
        cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--In the case of an 
                        eligible cooperative organization, any portion 
                        of the credit determined under subsection (a) 
                        for the taxable year may, at the election of 
                        the organization, be apportioned among patrons 
                        of the organization on the basis of the amount 
                        of business done by the patrons during the 
                        taxable year.
                            ``(ii) Form and effect of election.--An 
                        election under clause (i) for any taxable year 
                        shall be made on a timely filed return for such 
                        year. Such election, once made, shall be 
                        irrevocable for such taxable year. Such 
                        election shall not take effect unless the 
                        organization designates the apportionment as 
                        such in a written notice mailed to its patrons 
                        during the payment period described in section 
                        1382(d).
                    ``(B) Treatment of organizations and patrons.--The 
                amount of the credit apportioned to any patrons under 
                subparagraph (A)--
                            ``(i) shall not be included in the amount 
                        determined under subsection (a) with respect to 
                        the organization for the taxable year, and
                            ``(ii) shall be included in the amount 
                        determined under subsection (a) for the first 
                        taxable year of each patron ending on or after 
                        the last day of the payment period (as defined 
                        in section 1382(d)) for the taxable year of the 
                        organization or, if earlier, for the taxable 
                        year of each patron ending on or after the date 
                        on which the patron receives notice from the 
                        cooperative of the apportionment.
                    ``(C) Special rules for decrease in credits for 
                taxable year.--If the amount of the credit of a 
                cooperative organization determined under subsection 
                (a) for a taxable year is less than the amount of such 
                credit shown on the return of the cooperative 
                organization for such year, an amount equal to the 
                excess of--
                            ``(i) such reduction, over
                            ``(ii) the amount not apportioned to such 
                        patrons under subparagraph (A) for the taxable 
                        year,
                shall be treated as an increase in tax imposed by this 
                chapter on the organization. Such increase shall not be 
                treated as tax imposed by this chapter for purposes of 
                determining the amount of any credit under this 
                chapter.
                    ``(D) Eligible cooperative defined.--For purposes 
                of this section, the term `eligible cooperative' means 
                a cooperative organization described in section 1381(a) 
                which is owned more than 50 percent by agricultural 
                producers or by entities owned by agricultural 
                producers. For this purpose an entity owned by an 
                agricultural producer is one that is more than 50 
                percent owned by agricultural producers.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) is amended--
                    (A) in paragraph (35), by striking ``plus'' at the 
                end,
                    (B) in paragraph (36), by striking the period at 
                the end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(37) the clean energy production credit determined under 
        section 45S(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 45S. Clean energy production credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2017.

SEC. 5012. CLEAN ENERGY INVESTMENT CREDIT.

    (a) Business Credit.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 is amended by inserting after section 48D the 
        following new section:

``SEC. 48E. CLEAN ENERGY INVESTMENT CREDIT.

    ``(a) Investment Credit for Qualified Property.--
            ``(1) In general.--For purposes of section 46, the clean 
        energy investment credit for any taxable year is an amount 
        equal to the sum of--
                    ``(A) the clean energy percentage of the qualified 
                investment for such taxable year with respect to any 
                qualified facility, plus
                    ``(B) 30 percent of the qualified investment for 
                such taxable year with respect to qualified carbon 
                capture and sequestration equipment, plus
                    ``(C) 30 percent of the qualified investment for 
                such taxable year with respect to energy storage 
                property.
            ``(2) Clean energy percentage.--
                    ``(A) In general.--
                            ``(i) Maximum percentage.--Except as 
                        provided in clause (ii), the clean energy 
                        percentage is 30 percent.
                            ``(ii) Reduction of percentage based on 
                        greenhouse gas emissions rate.--The clean 
                        energy percentage shall be reduced (but not 
                        below zero) by an amount which bears the same 
                        ratio to 30 percent as the anticipated 
                        greenhouse gas emissions rate for the qualified 
                        facility bears to 372 grams of CO<INF>2</INF>e 
                        per KWh.
                    ``(B) Rounding.--If any amount determined under 
                subparagraph (A)(ii) is not a multiple of 1 percent, 
                such amount shall be rounded to the nearest multiple of 
                1 percent.
            ``(3) Coordination with rehabilitation credit.--The clean 
        energy percentage shall not apply to that portion of the basis 
        of any property which is attributable to qualified 
        rehabilitation expenditures (as defined in section 47(c)(2)).
    ``(b) Qualified Investment With Respect to Any Qualified 
Facility.--
            ``(1) In general.--For purposes of subsection (a)(1)(A), 
        the qualified investment with respect to any qualified facility 
        for any taxable year is the basis of any qualified property 
        placed in service by the taxpayer during such taxable year 
        which is part of a qualified facility.
            ``(2) Qualified property.--The term `qualified property' 
        means property--
                    ``(A) which is--
                            ``(i) tangible personal property, or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components), but only if such property is used 
                        as an integral part of the qualified facility,
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer, and
                    ``(D) the original use of which commences with the 
                taxpayer.
            ``(3) Qualified facility.--The term `qualified facility' 
        has the same meaning given such term by section 45S(e)(3) 
        (without regard to subparagraphs (B) and (D) thereof). Such 
        term shall not include any facility for which a renewable 
        electricity production credit under section 45 or an energy 
        credit determined under section 48 is allowed under section 38 
        for the taxable year or any prior taxable year.
    ``(c) Qualified Investment With Respect to Qualified Carbon Capture 
and Sequestration Equipment.--
            ``(1) In general.--For purposes of subsection (a)(1)(B), 
        the qualified investment with respect to qualified carbon 
        capture and sequestration equipment for any taxable year is the 
        basis of any qualified carbon capture and sequestration 
        equipment placed in service by the taxpayer during such taxable 
        year.
            ``(2) Qualified carbon capture and sequestration 
        equipment.--The term `qualified carbon capture and 
        sequestration equipment' means property--
                    ``(A) installed in a facility placed in service 
                before January 1, 2018, which produces electricity,
                    ``(B) which results in at least a 50 percent 
                reduction in the carbon dioxide emissions rate at the 
                facility, as compared to such rate before installation 
                of such equipment, through the capture and disposal of 
                qualified carbon dioxide (as defined in paragraph 
                (3)(A)),
                    ``(C) with respect to which depreciation is 
                allowable,
                    ``(D) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer, and
                    ``(E) the original use of which commences with the 
                taxpayer.
            ``(3) Qualified carbon dioxide.--
                    ``(A) In general.--The term `qualified carbon 
                dioxide' means carbon dioxide captured from an 
                industrial source which--
                            ``(i) would otherwise be released into the 
                        atmosphere as industrial emission of greenhouse 
                        gas,
                            ``(ii) is measured at the source of capture 
                        and verified at the point of disposal or 
                        injection,
                            ``(iii) is disposed of by the taxpayer in 
                        secure geological storage, and
                            ``(iv) is captured and disposed of within 
                        the United States (within the meaning of 
                        section 638(1)) or a possession of the United 
                        States (within the meaning of section 638(2)).
                    ``(B) Secure geological storage.--The term `secure 
                geological storage' has the same meaning given to such 
                term under section 45Q(d)(2).
    ``(d) Qualified Investment With Respect to Energy Storage 
Property.--
            ``(1) In general.--For purposes of subsection (a)(1)(C), 
        the qualified investment with respect to energy storage 
        property for any taxable year is the basis of any energy 
        storage property placed in service by the taxpayer during such 
        taxable year.
            ``(2) Energy storage property.--The term `energy storage 
        property' means property--
                    ``(A) installed at or near a facility which 
                produces electricity,
                    ``(B) which receives, stores, and delivers 
                electricity or energy for conversion to electricity 
                which is sold by the taxpayer to an unrelated person 
                (or, in the case of a facility which is equipped with a 
                metering device which is owned and operated by an 
                unrelated person, sold or consumed by the taxpayer), 
                which may include--
                            ``(i) hydroelectric pumped storage,
                            ``(ii) compressed air energy storage,
                            ``(iii) regenerative fuel cells,
                            ``(iv) batteries,
                            ``(v) superconducting magnetic energy 
                        storage,
                            ``(vi) thermal energy storage systems,
                            ``(vii) fuel cells (as defined in section 
                        48(c)(1)),
                            ``(viii) any other relevant technology 
                        identified by the Secretary (in consultation 
                        with the Secretary of Energy), and
                            ``(ix) any combination of the properties 
                        described in clauses (i) through (viii),
                    ``(C) with respect to which depreciation is 
                allowable,
                    ``(D) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer,
                    ``(E) the original use of which commences with the 
                taxpayer, and
                    ``(F) which is placed in service after December 31, 
                2017.
    ``(e) Greenhouse Gas Emissions Rate.--
            ``(1) In general.--For purposes of this section, the term 
        `greenhouse gas emissions rate' has the same meaning given such 
        term under subsection (b) of section 45S.
            ``(2) Establishment of safe harbor for qualified 
        property.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator of the Environmental Protection 
                Agency, shall, by regulation, establish safe-harbor 
                greenhouse gas emissions rates for types or categories 
                of qualified property which are part of a qualified 
                facility, which a taxpayer may elect to use for 
                purposes of this section.
                    ``(B) Rounding.--In establishing the safe-harbor 
                greenhouse gas emissions rates for qualified property, 
                the Secretary may round such rates to the nearest 
                multiple of 37.2 grams of CO<INF>2</INF>e per KWh (or, 
                in the case of a greenhouse gas emissions rate which is 
                less than 18.6 grams of CO<INF>2</INF>e per KWh, by 
                rounding such rate to zero).
    ``(f) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to the rules of subsection (c)(4) and (d) of section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
    ``(g) Credit Phase-out.--
            ``(1) In general.--Subject to paragraph (3), if the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, 
        determines that the annual greenhouse gas emissions from 
        electrical production in the United States are equal to or less 
        than 72 percent of the annual greenhouse gas emissions from 
        electrical production in the United States for calendar year 
        2005, the amount of the clean energy investment credit under 
        subsection (a) for any qualified facility, qualified carbon 
        capture and sequestration equipment, or energy storage property 
        placed in service during a calendar year described in paragraph 
        (2) shall be equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility or property placed in service 
                during the first calendar year following the calendar 
                year in which the determination described in paragraph 
                (1) is made, 75 percent,
                    ``(B) for a facility or property placed in service 
                during the second calendar year following such 
                determination year, 50 percent,
                    ``(C) for a facility or property placed in service 
                during the third calendar year following such 
                determination year, 25 percent, and
                    ``(D) for a facility or property placed in service 
                during any calendar year subsequent to the year 
                described in subparagraph (C), 0 percent.
            ``(3) Deadline to begin phase-out.--If the Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, determines that the 
        annual greenhouse gas emissions from electrical production in 
        the United States for each year before calendar year 2026 are 
        greater than the percentage specified in paragraph (1), then 
        the determination described in such paragraph shall be deemed 
        to have been made for calendar year 2025.
    ``(h) Definitions.--In this section:
            ``(1) CO<INF>2</INF>e per kwh.--The term `CO<INF>2</INF>e 
        per KWh' has the same meaning given such term under section 
        45S(e)(1).
            ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given such term under section 45S(e)(2).
    ``(i) Recapture of Credit.--For purposes of section 50, if the 
Administrator of the Environmental Protection Agency determines that--
            ``(1) the greenhouse gas emissions rate for a qualified 
        facility is significantly higher than the anticipated 
        greenhouse gas emissions rate claimed by the taxpayer for 
        purposes of the clean energy investment credit under this 
        section, or
            ``(2) with respect to any qualified carbon capture and 
        sequestration equipment installed in a facility, the carbon 
        dioxide emissions from such facility cease to be captured or 
        disposed of in a manner consistent with the requirements of 
        subsection (c),
the facility or equipment shall cease to be investment credit property 
in the taxable year in which the determination is made.
    ``(j) Final Guidance.--Not later than January 1, 2017, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of greenhouse gas emission rates 
for qualified facilities and determination of clean energy investment 
credits under this section.''.
            (2) Conforming amendments.--
                    (A) Section 46 is amended by inserting a comma at 
                the end of paragraph (4), by striking ``and'' at the 
                end of paragraph (5), by striking the period at the end 
                of paragraph (6) and inserting ``, and'', and by adding 
                at the end the following new paragraph:
            ``(7) the clean energy investment credit.''.
                    (B) Section 49(a)(1)(C) is amended by striking 
                ``and'' at the end of clause (v), by striking the 
                period at the end of clause (vi) and inserting a comma, 
                and by adding at the end the following new clauses:
                            ``(vii) the basis of any qualified property 
                        which is part of a qualified facility under 
                        section 48E,
                            ``(viii) the basis of any qualified carbon 
                        capture and sequestration equipment under 
                        section 48E, and
                            ``(ix) the basis of any energy storage 
                        property under section 48E.''.
                    (C) Section 50(a)(2)(E) is amended by inserting 
                ``or 48E(e)'' after ``section 48(b)''.
                    (D) The table of sections for subpart E of part IV 
                of subchapter A of chapter 1 is amended by inserting 
                after the item relating to section 48D the following 
                new item:

``48E. Clean energy investment credit.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2017, under rules similar to the rules of section 48(m) of the 
        Internal Revenue Code of 1986 (as in effect on the day before 
        the date of the enactment of the Revenue Reconciliation Act of 
        1990).
    (b) Individual Credit.--
            (1) In general.--Section 25D is amended to read as follows:

``SEC. 25D. CLEAN RESIDENTIAL ENERGY CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter for the taxable year an amount equal to the sum of--
                    ``(A) the clean energy percentage of the 
                expenditures made by the taxpayer for qualified 
                property which is--
                            ``(i) installed in a dwelling unit which is 
                        located in the United States and used as a 
                        residence by the taxpayer, and
                            ``(ii) placed in service during such 
                        taxable year, plus
                    ``(B) 30 percent of the expenditures made by the 
                taxpayer for energy storage property which is--
                            ``(i) installed in a dwelling unit which is 
                        located in the United States and used as a 
                        residence by the taxpayer, and
                            ``(ii) placed in service during such 
                        taxable year.
            ``(2) Clean energy percentage.--
                    ``(A) In general.--
                            ``(i) Maximum percentage.--Except as 
                        provided in clause (ii), the clean energy 
                        percentage is 30 percent.
                            ``(ii) Reduction of percentage based on 
                        greenhouse gas emissions rate.--The clean 
                        energy percentage shall be reduced (but not 
                        below zero) by an amount which bears the same 
                        ratio to 30 percent as the anticipated 
                        greenhouse gas emissions rate for the qualified 
                        property bears to 372 grams of CO<INF>2</INF>e 
                        per KWh.
                    ``(B) Rounding.--If any amount determined under 
                subparagraph (A)(ii) is not a multiple of 1 percent, 
                such amount shall be rounded to the nearest multiple of 
                1 percent.
                    ``(C) Definitions.--For purposes of this section, 
                the terms `greenhouse gas emissions rate' and 
                `CO<INF>2</INF>e per KWh' have the same meanings given 
                such terms under subsections (b) and (e)(1) of section 
                45S, respectively.
            ``(3) Establishment of safe harbor for qualified 
        property.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator of the Environmental Protection 
                Agency, shall, by regulation, establish safe-harbor 
                greenhouse gas emissions rates for types or categories 
                of qualified property which are installed in a dwelling 
                unit, which a taxpayer may elect to use for purposes of 
                this section.
                    ``(B) Rounding.--In establishing the safe-harbor 
                greenhouse gas emissions rates for qualified property, 
                the Secretary may round such rates to the nearest 
                multiple of 37.2 grams of CO<INF>2</INF>e per KWh (or, 
                in the case of a greenhouse gas emissions rate which is 
                less than 18.6 grams of CO<INF>2</INF>e per KWh, by 
                rounding such rate to zero).
    ``(b) Qualified Property.--The term `qualified property' means 
property--
            ``(1) which is tangible personal property,
            ``(2) which is used for the generation of electricity,
            ``(3) which is constructed, reconstructed, erected, or 
        acquired by the taxpayer,
            ``(4) the original use of which commences with the 
        taxpayer, and
            ``(5) which is originally placed in service after December 
        31, 2017.
    ``(c) Energy Storage Property.--The term `energy storage property' 
means property which receives, stores, and delivers electricity or 
energy for conversion to electricity which is consumed by the taxpayer, 
which may include--
            ``(1) batteries,
            ``(2) thermal energy storage systems,
            ``(3) fuel cells,
            ``(4) any other relevant technology identified by the 
        Secretary (in consultation with the Secretary of Energy), and
            ``(5) any combination of the properties described in 
        paragraphs (1) through (4).
    ``(d) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under this 
subpart (other than this section), such excess shall be carried to the 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.
    ``(e) Credit Phase-out.--
            ``(1) In general.--Subject to paragraph (3), if the 
        Secretary determines that the annual greenhouse gas emissions 
        from electrical production in the United States are equal to or 
        less than the percentage specified in section 48E(g), the 
        amount of the credit allowable under subsection (a) for any 
        qualified property or energy storage property placed in service 
        during a calendar year described in paragraph (2) shall be 
        equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for property placed in service during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 75 percent,
                    ``(B) for property placed in service during the 
                second calendar year following such determination year, 
                50 percent,
                    ``(C) for property placed in service during the 
                third calendar year following such determination year, 
                25 percent, and
                    ``(D) for property placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.
            ``(3) Deadline to begin phase-out.--If the Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, determines that the 
        annual greenhouse gas emissions from electrical production in 
        the United States for each year before calendar year 2026 are 
        greater than the percentage specified in section 48E(g), then 
        the determination described in paragraph (1) shall be deemed to 
        have been made for calendar year 2025.
    ``(f) Special Rules.--For purposes of this section:
            ``(1) Labor costs.--Expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the qualified property or energy storage 
        property and for piping or wiring to interconnect such property 
        to the dwelling unit shall be taken into account for purposes 
        of this section.
            ``(2) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(3) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which the individual 
                owns, such individual shall be treated as having made 
                the individual's proportionate share of any 
                expenditures of such association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(4) Allocation in certain cases.--If less than 80 percent 
        of the use of a property is for nonbusiness purposes, only that 
        portion of the expenditures for such property which is properly 
        allocable to use for nonbusiness purposes shall be taken into 
        account.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section for any expenditures with respect to any 
property, the increase in the basis of such property which would (but 
for this subsection) result from such expenditures shall be reduced by 
the amount of the credit so allowed.
    ``(h) Final Guidance.--Not later than January 1, 2017, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of greenhouse gas emission rates 
for qualified property and determination of residential clean energy 
property credits under this section.''.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 45(d) is amended by 
                striking ``Such term'' and all that follows through the 
                period and inserting the following: ``Such term shall 
                not include any facility with respect to which any 
                expenditures for qualified property (as defined in 
                subsection (b) of section 25D) which uses wind to 
                produce electricity is taken into account in 
                determining the credit under such section.''.
                    (B) Paragraph (34) of section 1016(a) is amended by 
                striking ``section 25D(f)'' and inserting ``section 
                25D(h)''.
                    (C) The item relating to section 25D in the table 
                of contents for subpart A of part IV of subchapter A of 
                chapter 1 is amended to read as follows:

``Sec. 25D. Clean residential energy credit.''.
            (3) Effective date.--The amendments made by this section 
        shall apply to property placed in service after December 31, 
        2017.

SEC. 5013. EXTENSIONS AND MODIFICATIONS OF VARIOUS ENERGY PROVISIONS.

    (a) Nonbusiness Energy Property.--
            (1) In general.--Paragraph (2) of section 25C(g) is amended 
        by striking ``December 31, 2014'' and inserting ``December 31, 
        2017''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2014.
    (b) Residential Energy Efficient Property.--Subsection (g) of 
section 25D is amended by striking ``December 31, 2016'' and inserting 
``December 31, 2017''.
    (c) Alternative Fuel Vehicle Refueling Property Credit.--
            (1) In general.--Paragraph (1) of section 30C(g) is amended 
        by striking ``December 31, 2014'' and inserting ``December 31, 
        2017''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2014.
    (d) 2- and 3-wheeled Plug-in Electric Vehicles.--
            (1) In general.--Subparagraph (E) of section 30D(g) is 
        amended to read as follows:
                    ``(E) is acquired--
                            ``(i) after December 31, 2011, and before 
                        January 1, 2014, or
                            ``(ii) after December 31, 2014, and before 
                        January 1, 2018.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to vehicles acquired after December 31, 2014.
    (e) Electricity Produced From Certain Renewable Resources.--
            (1) In general.--The following provisions of section 45(d) 
        are each amended by striking ``January 1, 2015'' each place it 
        appears and inserting ``January 1, 2018'':
                    (A) Paragraph (1).
                    (B) Paragraph (2)(A).
                    (C) Paragraph (3)(A).
                    (D) Paragraph (4)(B).
                    (E) Paragraph (6).
                    (F) Paragraph (7).
                    (G) Paragraph (9).
                    (H) Paragraph (11)(B).
            (2) Effective date.--The amendments made by this subsection 
        shall take effect on January 1, 2015.
    (f) Credit for Production From Advanced Nuclear Power Facilities.--
Section 45J(d)(1)(B) is amended by striking ``2021'' and inserting 
``2018''.
    (g) New Energy Efficient Home Credit.--
            (1) In general.--Subsection (g) of section 45L is amended 
        by striking ``December 31, 2014'' and inserting ``December 31, 
        2017''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to any qualified new energy efficient home acquired 
        after December 31, 2014.
    (h) Repeal of Energy Efficient Appliance Credit.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of subtitle A is amended by striking section 45M.
            (2) Conforming amendments.--
                    (A) Section 38(b) is amended by striking paragraph 
                (24).
                    (B) The table of sections for subpart D of part IV 
                of subchapter A of chapter 1 of subtitle A is amended 
                by striking the item relating to section 45M.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (i) Credit for Carbon Dioxide Sequestration.--Section 45Q(c) is 
amended--
            (1) in paragraph (2), by striking ``and'' at the end,
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(4) which is placed in service before January 1, 2018.''.
    (j) Energy Credit.--
            (1) Qualified investment credit facility.--
                    (A) In general.--Section 48(a)(5)(C)(ii) is amended 
                by striking ``January 1, 2015'' and inserting ``January 
                1, 2018''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall take effect on January 1, 2015.
            (2) Solar energy property.--Section 48(a) is amended--
                    (A) in paragraphs (2)(A)(i)(II) and (3)(A)(ii), by 
                striking ``January 1, 2017'' each place it appears and 
                inserting ``January 1, 2018'', and
                    (B) in paragraph (3)(A)(i), by inserting ``but only 
                with respect to periods ending before January 1, 2018'' 
                after ``swimming pool,''.
            (3) Geothermal energy property.--Section 48(a)(3)(A)(iii) 
        is amended by inserting ``with respect to periods ending before 
        January 1, 2018, and'' after ``but only''.
            (4) Thermal energy property.--Section 48(a)(3)(A)(vii) is 
        amended by striking ``January 1, 2017'' and inserting ``January 
        1, 2018''.
            (5) Qualified fuel cell property.--Section 48(c)(1)(D) is 
        amended by striking ``December 31, 2016'' and inserting 
        ``December 31, 2017''.
            (6) Qualified microturbine property.--Section 48(c)(2)(D) 
        is amended by striking ``December 31, 2016'' and inserting 
        ``December 31, 2017''.
            (7) Combined heat and power system property.--Section 
        48(c)(3)(A)(iv) is amended by striking ``January 1, 2017'' and 
        inserting ``January 1, 2018''.
            (8) Qualified small wind energy property.--Section 
        48(c)(4)(C) is amended by striking ``December 31, 2016'' and 
        inserting ``December 31, 2017''.
    (k) Qualifying Advanced Energy Project Credit.--
            (1) In general.--Section 48C is amended--
                    (A) by redesignating subsection (e) as subsection 
                (f), and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e) Additional Qualifying Advanced Energy Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Secretary, in consultation with the Secretary of 
                Energy, shall establish an additional qualifying 
                advanced energy project program to consider and award 
                certifications for qualified investments eligible for 
                credits under this section to qualifying advanced 
                energy project sponsors.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program described in 
                subparagraph (A) shall not exceed $5,000,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application containing such information as the 
                Secretary may require during the 2-year period 
                beginning on the date the Secretary establishes the 
                program under paragraph (1).
                    ``(B) Time to meet criteria for certification.--
                Each applicant for certification shall have 1 year from 
                the date of acceptance by the Secretary of the 
                application during which to provide to the Secretary 
                evidence that the requirements of the certification 
                have been met.
                    ``(C) Period of issuance.--An applicant which 
                receives a certification shall have 3 years from the 
                date of issuance of the certification in order to place 
                the project in service and if such project is not 
                placed in service by that time period, then the 
                certification shall no longer be valid.
            ``(3) Selection criteria.--In determining which qualifying 
        advanced energy projects to certify under this section, the 
        Secretary shall consider the same criteria described in 
        subsection (d)(3).
            ``(4) Review and redistribution.--
                    ``(A) Review.--Not later than 4 years after the 
                date of enactment of this subsection, the Secretary 
                shall review the credits allocated pursuant to this 
                subsection as of such date.
                    ``(B) Redistribution.--The Secretary may reallocate 
                credits awarded under this section if the Secretary 
                determines that--
                            ``(i) there is an insufficient quantity of 
                        qualifying applications for certification 
                        pending at the time of the review, or
                            ``(ii) any certification made pursuant to 
                        paragraph (2) has been revoked pursuant to 
                        paragraph (2)(B) because the project subject to 
                        the certification has been delayed as a result 
                        of third party opposition or litigation to the 
                        proposed project.
                    ``(C) Reallocation.--If the Secretary determines 
                that credits under this section are available for 
                reallocation pursuant to the requirements set forth in 
                paragraph (2), the Secretary is authorized to conduct 
                an additional program for applications for 
                certification.
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection, publicly disclose 
        the identity of the applicant and the amount of the credit with 
        respect to such applicant.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to periods after the date of the enactment of this 
        Act, under rules similar to the rules of section 48(m) of the 
        Internal Revenue Code of 1986 (as in effect on the day before 
        the date of the enactment of the Revenue Reconciliation Act of 
        1990).
    (l) Energy Efficient Commercial Buildings Deduction.--
            (1) In general.--Subsection (h) of section 179D is amended 
        by striking ``December 31, 2014'' and inserting ``December 31, 
        2017''.
            (2) Effective date.--The amendments made by this section 
        shall apply to property placed in service after December 31, 
        2014.

                   Subtitle B--Clean Fuel Tax Credits

SEC. 5021. CLEAN FUEL PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by section _01, is amended by adding at the end the 
following new section:

``SEC. 45T. CLEAN FUEL PRODUCTION CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the clean 
        fuel production credit for any taxable year is an amount equal 
        to the product of--
                    ``(A) $1.00 per energy equivalent of a gallon of 
                gasoline with respect to any transportation fuel which 
                is--
                            ``(i) produced by the taxpayer at a 
                        qualified facility, and
                            ``(ii) sold or used by the taxpayer in a 
                        manner described in paragraph (2), and
                    ``(B) the emissions factor for such fuel (as 
                determined under subsection (b)(2)).
            ``(2) Sale or use.--For purposes of paragraph (1)(A)(ii), 
        the transportation fuel is sold or used in a manner described 
        in this paragraph if such fuel is--
                    ``(A) sold by the taxpayer to an unrelated person--
                            ``(i) for use by such person in the 
                        production of a fuel mixture that will be used 
                        as a transportation fuel,
                            ``(ii) for use by such person as a 
                        transportation fuel in a trade or business, or
                            ``(iii) who sells such fuel at retail to 
                        another person and places such fuel in the fuel 
                        tank of such other person, or
                    ``(B) used or sold by the taxpayer for any purpose 
                described in subparagraph (A).
            ``(3) Rounding.--If any amount determined under paragraph 
        (1) is not a multiple of 0.1 cent, such amount shall be rounded 
        to the nearest multiple of 0.1 cent.
    ``(b) Emissions Factors.--
            ``(1) Emissions factor.--
                    ``(A) In general.--The emissions factor of a 
                transportation fuel shall be an amount equal to the 
                quotient of--
                            ``(i) an amount (not less than zero) equal 
                        to --
                                    ``(I) 77.23, minus
                                    ``(II) the emissions rate for such 
                                fuel, divided by
                            ``(ii) 77.23.
                    ``(B) Establishment of safe harbor emissions 
                rate.--The Secretary, in consultation with the 
                Administrator of the Environmental Protection Agency, 
                shall establish the safe harbor emissions rate for 
                similar types and categories of transportation fuels 
                based on the amount of lifecycle greenhouse gas 
                emissions (as described in section 211(o)(1)(H) of the 
                Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect 
                on the date of the enactment of this section) for such 
                fuels, expressed as kilograms of CO<INF>2</INF>e per 
                mmBTU, which a taxpayer may elect to use for purposes 
                of this section.
                    ``(C) Rounding of safe harbor emissions rate.--The 
                Secretary may round the safe harbor emissions rates 
                under subparagraph (B) to the nearest multiple of 7.723 
                kilograms of CO<INF>2</INF>e per mmBTU, except that, in 
                the case of an emissions rate that is less than 3.862 
                kilograms of CO<INF>2</INF>e per mmBTU, the Secretary 
                may round such rate to zero.
                    ``(D) Provisional safe harbor emissions rate.--
                            ``(i) In general.--In the case of any 
                        transportation fuel for which a safe harbor 
                        emissions rate has not been established by the 
                        Secretary, a taxpayer producing such fuel may 
                        file a petition with the Secretary for 
                        determination of the safe harbor emissions rate 
                        with respect to such fuel.
                            ``(ii) Establishment of provisional and 
                        final safe harbor emissions rate.--In the case 
                        of a transportation fuel for which a petition 
                        described in clause (i) has been filed, the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, shall--
                                    ``(I) not later than 12 months 
                                after the date on which the petition 
                                was filed, provide a provisional safe 
                                harbor emissions rate for such fuel 
                                which a taxpayer may use for purposes 
                                of this section, and
                                    ``(II) not later than 24 months 
                                after the date on which the petition 
                                was filed, establish the safe harbor 
                                emissions rate for such fuel.
                    ``(E) Rounding.--If any amount determined under 
                subparagraph (A) is not a multiple of 0.1, such amount 
                shall be rounded to the nearest multiple of 0.1.
            ``(2) Publishing safe harbor emissions rate.--The 
        Secretary, in consultation with the Administrator of the 
        Environmental Protection Agency, shall publish a table that 
        sets forth the safe harbor emissions rate (as established 
        pursuant to paragraph (1)) for similar types and categories of 
        transportation fuels.
    ``(c) Inflation Adjustment.--
            ``(1) In general.--In the case of calendar years beginning 
        after 2018, the $1.00 amount in subsection (a)(1)(A) shall be 
        adjusted by multiplying such amount by the inflation adjustment 
        factor for the calendar year in which the sale or use of the 
        transportation fuel occurs. If any amount as increased under 
        the preceding sentence is not a multiple of 1 cent, such amount 
        shall be rounded to the nearest multiple of 1 cent.
            ``(2) Inflation adjustment factor.--For purposes of 
        paragraph (1), the inflation adjustment factor shall be the 
        inflation adjustment factor determined and published by the 
        Secretary pursuant to section 45S(c), determined by 
        substituting `calendar year 2017' for `calendar year 1992' in 
        paragraph (3) thereof.
    ``(d) Credit Phase-out.--
            ``(1) In general.--Subject to paragraph (3), if the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, 
        determines that the greenhouse gas emissions from 
        transportation fuel produced and sold at retail annually in the 
        United States are equal to or less than 72 percent of the 
        greenhouse gas emissions from transportation fuel produced and 
        sold at retail in the United States during calendar year 2005, 
        the amount of the clean fuel production credit under this 
        section for any qualified facility placed in service during a 
        calendar year described in paragraph (2) shall be equal to the 
        product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility placed in service during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 75 percent,
                    ``(B) for a facility placed in service during the 
                second calendar year following such determination year, 
                50 percent,
                    ``(C) for a facility placed in service during the 
                third calendar year following such determination year, 
                25 percent, and
                    ``(D) for a facility placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.
            ``(3) Deadline to begin phase-out.--If the Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, determines that the 
        greenhouse gas emissions from transportation fuel produced and 
        sold at retail annually in the United States are, for each year 
        before calendar year 2026, greater than the percentage 
        specified in paragraph (1), then the determination described in 
        such paragraph shall be deemed to have been made for calendar 
        year 2025.
    ``(e) Definitions.--In this section:
            ``(1) mmBTU.--The term `mmBTU' means 1,000,000 British 
        thermal units.
            ``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means, 
        with respect to any greenhouse gas, the equivalent carbon 
        dioxide.
            ``(3) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given that term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(4) Qualified facility.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the term `qualified facility' means a facility 
                used for the production of transportation fuels.
                    ``(B) 10-year production credit.--For purposes of 
                this section, a facility shall only qualify as a 
                qualified facility--
                            ``(i) in the case of a facility that is 
                        originally placed in service after December 31, 
                        2017, for the 10-year period beginning on the 
                        date such facility is placed in service, or
                            ``(ii) in the case of a facility that is 
                        originally placed in service before January 1, 
                        2018, for the 10-year period beginning on 
                        January 1, 2018.
            ``(5) Transportation fuel.--The term `transportation fuel' 
        means a fuel which is suitable for use as a fuel in a highway 
        vehicle or aircraft.
    ``(f) Final Guidance.--Not later than January 1, 2017, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of emissions factors for 
transportation fuel, the table described in subsection (b)(2), and the 
determination of clean fuel production credits under this section.
    ``(g) Special Rules.--
            ``(1) Only registered production in the united states taken 
        into account.--
                    ``(A) In general.--No clean fuel production credit 
                shall be determined under subsection (a) with respect 
                to any transportation fuel unless--
                            ``(i) the taxpayer is registered as a 
                        producer of clean fuel under section 4101 at 
                        the time of production, and
                            ``(ii) such fuel is produced in the United 
                        States.
                    ``(B) United states.--For purposes of this 
                paragraph, the term `United States' includes any 
                possession of the United States.
            ``(2) Production attributable to the taxpayer.--In the case 
        of a facility in which more than 1 person has an ownership 
        interest, except to the extent provided in regulations 
        prescribed by the Secretary, production from the facility shall 
        be allocated among such persons in proportion to their 
        respective ownership interests in the gross sales from such 
        facility.
            ``(3) Related persons.--Persons shall be treated as related 
        to each other if such persons would be treated as a single 
        employer under the regulations prescribed under section 52(b). 
        In the case of a corporation which is a member of an affiliated 
        group of corporations filing a consolidated return, such 
        corporation shall be treated as selling fuel to an unrelated 
        person if such fuel is sold to such a person by another member 
        of such group.
            ``(4) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(5) Allocation of credit to patrons of agricultural 
        cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--In the case of an 
                        eligible cooperative organization, any portion 
                        of the credit determined under subsection (a) 
                        for the taxable year may, at the election of 
                        the organization, be apportioned among patrons 
                        of the organization on the basis of the amount 
                        of business done by the patrons during the 
                        taxable year.
                            ``(ii) Form and effect of election.--An 
                        election under clause (i) for any taxable year 
                        shall be made on a timely filed return for such 
                        year. Such election, once made, shall be 
                        irrevocable for such taxable year. Such 
                        election shall not take effect unless the 
                        organization designates the apportionment as 
                        such in a written notice mailed to its patrons 
                        during the payment period described in section 
                        1382(d).
                    ``(B) Treatment of organizations and patrons.--The 
                amount of the credit apportioned to any patrons under 
                subparagraph (A)--
                            ``(i) shall not be included in the amount 
                        determined under subsection (a) with respect to 
                        the organization for the taxable year, and
                            ``(ii) shall be included in the amount 
                        determined under subsection (a) for the first 
                        taxable year of each patron ending on or after 
                        the last day of the payment period (as defined 
                        in section 1382(d)) for the taxable year of the 
                        organization or, if earlier, for the taxable 
                        year of each patron ending on or after the date 
                        on which the patron receives notice from the 
                        cooperative of the apportionment.
                    ``(C) Special rules for decrease in credits for 
                taxable year.--If the amount of the credit of a 
                cooperative organization determined under subsection 
                (a) for a taxable year is less than the amount of such 
                credit shown on the return of the cooperative 
                organization for such year, an amount equal to the 
                excess of--
                            ``(i) such reduction, over
                            ``(ii) the amount not apportioned to such 
                        patrons under subparagraph (A) for the taxable 
                        year,
                shall be treated as an increase in tax imposed by this 
                chapter on the organization. Such increase shall not be 
                treated as tax imposed by this chapter for purposes of 
                determining the amount of any credit under this 
                chapter.
                    ``(D) Eligible cooperative defined.--For purposes 
                of this section the term `eligible cooperative' means a 
                cooperative organization described in section 1381(a) 
                which is owned more than 50 percent by agricultural 
                producers or by entities owned by agricultural 
                producers. For this purpose an entity owned by an 
                agricultural producer is one that is more than 50 
                percent owned by agricultural producers.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by section _01, is amended--
                    (A) in paragraph (36), by striking ``plus'' at the 
                end,
                    (B) in paragraph (37), by striking the period at 
                the end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(38) the clean fuel production credit determined under 
        section 45T(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by section _01, is 
        amended by adding at the end the following new item:

``Sec. 45T. Clean fuel production credit.''.
            (3) Section 4101(a)(1) is amended by inserting ``every 
        person producing a fuel eligible for the clean fuel production 
        credit (pursuant to section 45T),'' after ``section 
        6426(b)(4)(A)),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transportation fuel produced after December 31, 2017.

SEC. 5022. TEMPORARY EXTENSION OF EXISTING FUEL INCENTIVES.

    (a) Second Generation Biofuel Producer Credit.--
            (1) In general.--Section 40(b)(6) is amended--
                    (A) in subparagraph (E)(i)--
                            (i) in subclause (I), by striking ``and'' 
                        at the end,
                            (ii) in subclause (II), by striking the 
                        period at the end and inserting ``, and'', and
                            (iii) by inserting at the end the following 
                        new subclause:
                                    ``(III) qualifies as a 
                                transportation fuel (as defined in 
                                section 45T(e)(5)).'', and
                    (B) in subparagraph (J)(i), by striking ``2015'' 
                and inserting ``2018''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to qualified second generation biofuel production 
        after December 31, 2014.
    (b) Biodiesel and Renewable Diesel Used as Fuel.--
            (1) In general.--Section 40A is amended--
                    (A) in subsection (f)(3)(B), by striking ``or 
                D396'', and
                    (B) in subsection (g), by striking ``2014'' and 
                inserting ``2017''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2014.
    (c) Credit for Biodiesel and Alternative Fuel Mixtures.--
            (1) In general.--Section 6426 is amended--
                    (A) in subsection (c)(6), by striking ``2014'' and 
                inserting ``2017'',
                    (B) in subsection (d)--
                            (i) in paragraph (1), by striking ``motor 
                        vehicle'' and inserting ``highway vehicle'',
                            (ii) in paragraph (2)(D), by striking 
                        ``liquefied'', and
                            (iii) in paragraph (5), by striking 
                        ``2014'' and inserting ``2017'', and
                    (C) in subsection (e), by amending paragraph (3) to 
                read as follows:
            ``(3) Termination.--This subsection shall not apply to any 
        sale or use for any period after--
                    ``(A) in the case of any alternative fuel mixture 
                sold or used by the taxpayer for the purposes described 
                in subsection (d)(1), December 31, 2017,
                    ``(B) in the case of any sale or use involving 
                hydrogen that is not for the purposes described in 
                subsection (d)(1), December 31, 2017, and
                    ``(C) in the case of any sale or use not described 
                in subparagraph (A) or (B), December 31, 2014.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2014.
    (d) Biodiesel, Biodiesel Mixtures, and Alternative Fuels.--
            (1) In general.--Section 6427(e)(6) is amended--
                    (A) in subparagraph (B), by striking ``2014'' and 
                inserting ``2017'', and
                    (B) in subparagraph (C), by striking ``2014'' and 
                inserting ``2017''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2014.
    (e) Special Rule for Certain Periods During 2015.--Notwithstanding 
any other provision of law, in the case of--
            (1) any biodiesel mixture credit properly determined under 
        section 6426(c) of the Internal Revenue Code of 1986 for 
        periods after December 31, 2014, and on or before the last day 
        of the first calendar quarter ending after the date of the 
        enactment of this Act, and
            (2) any alternative fuel credit properly determined under 
        section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. Such Secretary shall issue 
guidance within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering periods 
described in the preceding sentence. Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.

                Subtitle C--Energy Efficiency Incentives

SEC. 5031. CREDIT FOR NEW ENERGY EFFICIENT RESIDENTIAL BUILDINGS.

    (a) In General.--Section 45L is amended to read as follows:

``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of an eligible contractor, the new energy efficient home credit for the 
taxable year is the applicable amount for each qualified residence 
which is--
            ``(1) constructed by the eligible contractor, and
            ``(2) acquired by a person from such eligible contractor 
        for use as a residence during the taxable year.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable amount shall be an amount equal to $1,500 increased 
        (but not above $3,000) by $100 for every 5 percentage points by 
        which the efficiency ratio for the qualified residence is 
        certified to be greater than 25 percent.
            ``(2) Efficiency ratio.--For purposes of this section, the 
        efficiency ratio of a qualified residence shall be equal to the 
        quotient, expressed as a percentage, obtained by dividing--
                    ``(A) an amount equal to the difference between--
                            ``(i) the annual level of energy 
                        consumption of the qualified residence, and
                            ``(ii) the annual level of energy 
                        consumption of the baseline residence, by
                    ``(B) the annual level of energy consumption of the 
                baseline residence.
            ``(3) Baseline residence.--For purposes of this section, 
        the baseline residence shall be a residence which is--
                    ``(A) comparable to the qualified residence, and
                    ``(B) constructed in accordance with the standards 
                of the 2015 International Energy Conservation Code, as 
                such Code (including supplements) is in effect on the 
                date of the enactment of the American Energy Innovation 
                Act.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Eligible contractor.--The term `eligible contractor' 
        means--
                    ``(A) the person who constructed the qualified 
                residence, or
                    ``(B) in the case of a qualified residence which is 
                a manufactured home, the manufactured home producer of 
                such residence.
            ``(2) Qualified residence.--The term `qualified residence' 
        means a dwelling unit--
                    ``(A) located in the United States,
                    ``(B) the construction of which is substantially 
                completed after the date of the enactment of this 
                section, and
                    ``(C) which is certified to have an annual level of 
                energy consumption that is less than the baseline 
                residence and an efficiency ratio of not less than 25 
                percent.
            ``(3) Construction.--The term `construction' does not 
        include substantial reconstruction or rehabilitation.
    ``(d) Certification.--
            ``(1) In general.--A certification described in this 
        section shall be made--
                    ``(A) in accordance with guidance prescribed by, 
                and
                    ``(B) by a third-party that is accredited by a 
                certification program approved by,
        the Secretary, in consultation with the Secretary of Energy. 
        Such guidance shall specify procedures and methods for 
        calculating annual energy consumption levels, and shall include 
        requirements to ensure the safe operation of energy efficiency 
        improvements and that all improvements are installed according 
        to the applicable standards of such certification program.
            ``(2) Computer software.--
                    ``(A) In general.--Any calculation under paragraph 
                (1) shall be prepared by qualified computer software.
                    ``(B) Qualified computer software.--For purposes of 
                this paragraph, the term `qualified computer software' 
                means software--
                            ``(i) for which the software designer has 
                        certified that the software meets all 
                        procedures and detailed methods for calculating 
                        energy consumption levels as required by the 
                        Secretary, and
                            ``(ii) which provides such forms as 
                        required to be filed by the Secretary in 
                        connection with energy consumption levels and 
                        the credit allowed under this section.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section in connection with any expenditure for 
any property (other than a qualified low-income building, as described 
in section 42(c)(2)), the increase in the basis of such property which 
would (but for this subsection) result from such expenditure shall be 
reduced by the amount of the credit so determined.
    ``(f) Coordination With Investment Credits.--For purposes of this 
section, expenditures taken into account under section 25D or 47 shall 
not be taken into account under this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any qualified residence acquired after December 31, 2017.

SEC. 5032. ENERGY EFFICIENCY CREDIT FOR EXISTING RESIDENTIAL BUILDINGS.

    (a) In General.--Section 25C is amended to read as follows:

``SEC. 25C. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO RESIDENTIAL 
              BUILDINGS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the lesser of--
            ``(1) the applicable amount for the qualified residence 
        based on energy efficiency improvements made by the taxpayer 
        and placed in service during such taxable year, or
            ``(2) 30 percent of the amount paid or incurred by the 
        taxpayer for energy efficiency improvements made to the 
        qualified residence that were placed in service during such 
        taxable year.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a)(1), the 
        applicable amount shall be an amount equal to $1,750 increased 
        (but not above $6,500) by $300 for every 5 percentage points by 
        which the efficiency ratio for the qualified residence is 
        certified to be greater than 20 percent.
            ``(2) Efficiency ratio.--For purposes of this section, the 
        efficiency ratio of a qualified residence shall be equal to the 
        quotient, expressed as a percentage, obtained by dividing--
                    ``(A) an amount equal to the difference between--
                            ``(i) the projected annual level of energy 
                        consumption of the qualified residence after 
                        the energy efficiency improvements have been 
                        placed in service, and
                            ``(ii) the annual level of energy 
                        consumption of such qualified residence prior 
                        to the energy efficiency improvements being 
                        placed in service, by
                    ``(B) the annual level of energy consumption 
                described in subparagraph (A)(ii).
            ``(3) Coordination with credit for residential energy 
        efficient property.--For purposes of paragraph (2)(A), the 
        determination of the difference in annual levels of energy 
        consumption of the qualified residence shall not include any 
        reduction in net energy consumption related to qualified 
        property or energy storage property for which a credit was 
        allowed under section 25D.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Qualified residence.--The term `qualified residence' 
        means a dwelling unit--
                    ``(A) located in the United States,
                    ``(B) owned and used by the taxpayer as the 
                taxpayer's principal residence (within the meaning of 
                section 121), and
                    ``(C) which is certified to have--
                            ``(i) a projected annual level of energy 
                        consumption after the energy efficiency 
                        improvements have been placed in service that 
                        is less than the annual level of energy 
                        consumption prior to the energy efficiency 
                        improvements being placed in service, and
                            ``(ii) an efficiency ratio of not less than 
                        20 percent.
            ``(2) Energy efficiency improvements.--
                    ``(A) In general.--The term `energy efficiency 
                improvements' means any property installed on or in a 
                dwelling unit which has been certified to reduce the 
                level of energy consumption for such unit or to provide 
                for onsite generation of electricity or useful thermal 
                energy, provided that--
                            ``(i) the original use of such property 
                        commences with the taxpayer, and
                            ``(ii) such property reasonably can be 
                        expected to remain in use for at least 5 years.
                    ``(B) Amounts paid or incurred for energy 
                efficiency improvements.--For purposes of subsection 
                (a)(2), the amount paid or incurred by the taxpayer--
                            ``(i) shall include expenditures for design 
                        and for labor costs properly allocable to the 
                        onsite preparation, assembly, or original 
                        installation of the property, and
                            ``(ii) shall not include any expenditures 
                        related to expansion of the building envelope.
    ``(d) Special Rules.--For purposes of this section:
            ``(1) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures for energy efficiency 
        improvements of such corporation.
            ``(2) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which the individual 
                owns, such individual shall be treated as having made 
                the individual's proportionate share of any 
                expenditures for energy efficiency improvements of such 
                association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(3) Allocation in certain cases.--If less than 80 percent 
        of the use of a property is for nonbusiness purposes, only that 
        portion of the expenditures for energy efficiency improvements 
        for such property which is properly allocable to use for 
        nonbusiness purposes shall be taken into account.
    ``(e) Certification.--
            ``(1) In general.--A certification described in this 
        section shall be made--
                    ``(A) in accordance with guidance prescribed by, 
                and
                    ``(B) by a third-party that is accredited by a 
                certification program approved by,
        the Secretary, in consultation with the Secretary of Energy. 
        Such guidance shall specify procedures and methods for 
        calculating annual energy consumption levels, with such 
        calculations to take into account onsite generation of 
        electricity or useful thermal energy, and shall include 
        requirements to ensure the safe operation of energy efficiency 
        improvements and that all improvements are installed according 
        to the applicable standards of such certification program.
            ``(2) Computer software.--
                    ``(A) In general.--Any calculation under paragraph 
                (1) shall be prepared by qualified computer software.
                    ``(B) Qualified computer software.--For purposes of 
                this paragraph, the term `qualified computer software' 
                has the same meaning given such term under section 
                45L(d)(2).
    ``(f) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section for any expenditures with respect to any 
energy efficiency improvements, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditures shall be reduced by the amount of the credit so allowed.
    ``(g) Coordination With Investment Credits.--For purposes of this 
section, expenditures taken into account under section 25D or 47 shall 
not be taken into account under this section.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 is amended by striking the item 
relating to section 25C and inserting after the item relating to 
section 25B the following item:

``Sec. 25C. Credit for energy efficiency improvements to residential 
                            buildings.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any energy efficiency improvements placed in service after 
December 31, 2017.

SEC. 5033. DEDUCTION FOR NEW ENERGY EFFICIENT COMMERCIAL BUILDINGS.

    (a) In General.--Section 179D is amended to read as follows:

``SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDING DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to the applicable amount for each qualified building placed in 
service by the taxpayer during the taxable year.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable amount shall be an amount equal to the product of--
                    ``(A) the applicable dollar value, and
                    ``(B) the square footage of the qualified building.
            ``(2) Applicable dollar value.--For purposes of paragraph 
        (1)(A), the applicable dollar value shall be an amount equal to 
        $1.00 increased (but not above $4.75) by $0.25 for every 5 
        percentage points by which the efficiency ratio for the 
        qualified building is certified to be greater than 25 percent.
            ``(3) Efficiency ratio.--For purposes of this section, the 
        efficiency ratio of a qualified building shall be equal to the 
        quotient, expressed as a percentage, obtained by dividing--
                    ``(A) an amount equal to the difference between--
                            ``(i) the annual level of energy 
                        consumption of the qualified building, and
                            ``(ii) the annual level of energy 
                        consumption of the baseline building, by
                    ``(B) the annual level of energy consumption of the 
                baseline building.
            ``(4) Baseline building.--For purposes of this section, the 
        baseline building shall be a building which--
                    ``(A) is comparable to the qualified building, and
                    ``(B) meets the minimum requirements of Standard 
                90.1-2013 of the American Society of Heating, 
                Refrigerating, and Air Conditioning Engineers and the 
                Illuminating Engineering Society of North America (as 
                in effect on December 31, 2014).
    ``(c) Qualified Building.--The term `qualified building' means a 
building--
            ``(1) located in the United States,
            ``(2) which is owned by the taxpayer, and
            ``(3) which is certified to have an annual level of energy 
        consumption that is less than the baseline building and an 
        efficiency ratio of not less than 25 percent.
    ``(d) Allocation of Deduction.--
            ``(1) In general.--In the case of a qualified building 
        owned by an eligible entity, the Secretary shall promulgate 
        regulations to allow the allocation of the deduction to the 
        person primarily responsible for designing the property in lieu 
        of the owner of such property, with such person to be treated 
        as the taxpayer for purposes of this section.
            ``(2) Eligible entity.--For purposes of this subsection, 
        the term `eligible entity' means--
                    ``(A) a Federal, State, or local government or a 
                political subdivision thereof,
                    ``(B) an Indian tribe (as defined in section 
                45A(c)(6)), or
                    ``(C) an organization described in section 501(c) 
                and exempt from tax under section 501(a).
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to any qualified 
building, the basis of such property shall be reduced by the amount of 
the deduction so allowed.
    ``(f) Certification.--
            ``(1) In general.--A certification described in this 
        section shall be made--
                    ``(A) in accordance with guidance prescribed by, 
                and
                    ``(B) by a third-party that is accredited by a 
                certification program approved by,
        the Secretary, in consultation with the Secretary of Energy. 
        Such guidance shall specify procedures and methods for 
        calculating annual energy consumption levels, and shall include 
        requirements to ensure the safe operation of energy efficiency 
        improvements and that all improvements are installed according 
        to the applicable standards of such certification program.
            ``(2) Computer software.--
                    ``(A) In general.--Any calculation under paragraph 
                (1) shall be prepared by qualified computer software.
                    ``(B) Qualified computer software.--For purposes of 
                this paragraph, the term `qualified computer software' 
                means software--
                            ``(i) for which the software designer has 
                        certified that the software meets all 
                        procedures and detailed methods for calculating 
                        energy consumption levels as required by the 
                        Secretary, and
                            ``(ii) which provides such forms as 
                        required to be filed by the Secretary in 
                        connection with energy consumption levels and 
                        the deduction allowed under this section.''.
    (b) Conforming Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 is amended by striking the item relating to 
section 179D and inserting after the item relating to section 179C the 
following item:

``Sec. 179D. Energy efficient commercial building deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any qualified building placed in service after December 31, 
2017.

SEC. 5034. ENERGY EFFICIENCY DEDUCTION FOR EXISTING COMMERCIAL 
              BUILDINGS.

    (a) In General.--Part VI of subchapter B of chapter 1 is amended by 
inserting after section 179E the following new section:

``SEC. 179F. DEDUCTION FOR ENERGY EFFICIENCY IMPROVEMENTS TO COMMERCIAL 
              BUILDINGS.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to the lesser of--
            ``(1) the applicable amount for the qualified building 
        based on energy efficiency improvements made by the taxpayer 
        and placed in service during the taxable year, or
            ``(2) 30 percent of the amount paid or incurred by the 
        taxpayer for energy efficiency improvements made to the 
        qualified building which were placed in service during the 
        taxable year.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable amount shall be an amount equal to the product of--
                    ``(A) the applicable dollar value, and
                    ``(B) the square footage of the qualified building.
            ``(2) Applicable dollar value.--For purposes of paragraph 
        (1), the applicable dollar value shall be an amount equal to 
        $1.25 increased (but not above $9.25) by $0.50 for every 5 
        percentage points by which the efficiency ratio for the 
        qualified building is certified to be greater than 20 percent.
            ``(3) Efficiency ratio.--For purposes of this section, the 
        efficiency ratio of a qualified building shall be equal to the 
        quotient, expressed as a percentage, obtained by dividing--
                    ``(A) an amount equal to the difference between--
                            ``(i) the projected annual level of energy 
                        consumption of the qualified building after the 
                        energy efficiency improvements have been placed 
                        in service, and
                            ``(ii) the annual level of energy 
                        consumption of such qualified building prior to 
                        the energy efficiency improvements being placed 
                        in service, by
                    ``(B) the annual level of energy consumption 
                described in subparagraph (A)(ii).
            ``(4) Coordination with clean energy investment credit.--
        For purposes of paragraph (3)(A), the determination of the 
        difference in annual levels of energy consumption of the 
        qualified building shall not include any reduction in net 
        energy consumption related to qualified property or energy 
        storage property for which a credit was allowed under section 
        48E.
    ``(c) Definitions.--
            ``(1) Qualified building.--The term `qualified building' 
        means a building--
                    ``(A) located in the United States,
                    ``(B) which is owned by the taxpayer, and
                    ``(C) which is certified to have--
                            ``(i) a projected annual level of energy 
                        consumption after the energy efficiency 
                        improvements have been placed in service that 
                        is less than the annual level of energy 
                        consumption prior to the energy efficiency 
                        improvements being placed in service, and
                            ``(ii) an efficiency ratio of not less than 
                        20 percent.
            ``(2) Energy efficiency improvements.--
                    ``(A) In general.--The term `energy efficiency 
                improvements' means any property installed on or in a 
                qualified building which has been certified to reduce 
                the level of energy consumption for such building or to 
                increase onsite generation of electricity, provided 
                that depreciation (or amortization in lieu of 
                depreciation) is allowable with respect to such 
                property.
                    ``(B) Amounts paid or incurred for energy 
                efficiency improvements.--For purposes of subsection 
                (a)(2), the amount paid or incurred by the taxpayer--
                            ``(i) shall include expenditures for design 
                        and for labor costs properly allocable to the 
                        onsite preparation, assembly, or original 
                        installation of the property, and
                            ``(ii) shall not include any expenditures 
                        related to expansion of the building envelope.
    ``(d) Certification.--
            ``(1) In general.--A certification described in this 
        section shall be made--
                    ``(A) in accordance with guidance prescribed by, 
                and
                    ``(B) by a third-party that is accredited by a 
                certification program approved by,
        the Secretary, in consultation with the Secretary of Energy. 
        Such guidance shall specify procedures and methods for 
        calculating annual energy consumption levels, with such 
        calculations to take into account onsite generation of 
        electricity or useful thermal energy, and shall include 
        requirements to ensure the safe operation of energy efficiency 
        improvements and that all improvements are installed according 
        to the applicable standards of such certification program.
            ``(2) Computer software.--
                    ``(A) In general.--Any calculation under paragraph 
                (1) shall be prepared by qualified computer software.
                    ``(B) Qualified computer software.--For purposes of 
                this paragraph, the term `qualified computer software' 
                has the same meaning given such term under section 
                179D(f)(2).
    ``(e) Allocation of Deduction.--
            ``(1) In general.--In the case of a qualified building 
        owned by an eligible entity, the Secretary shall promulgate 
        regulations to allow the allocation of the deduction to the 
        person primarily responsible for designing the energy 
        efficiency improvements in lieu of the owner of such property, 
        with such person to be treated as the taxpayer for purposes of 
        this section.
            ``(2) Eligible entity.--For purposes of this subsection, 
        the term `eligible entity' has the same meaning given such term 
        under section 179D(d)(2).
    ``(f) Basis Reduction.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to any energy 
efficiency improvements, the basis of such property shall be reduced by 
the amount of the deduction so allowed.
    ``(g) Coordination With Other Credits.--For purposes of this 
section, expenditures taken into account under section 47 or 48E shall 
not be taken into account under this section.''.
    (b) Conforming Amendment.--
            (1) Section 263(a) is amended--
                    (A) in subparagraph (K), by striking ``or'' at the 
                end,
                    (B) in subparagraph (L), by striking the period and 
                inserting ``, or'', and
                    (C) by inserting at the end the following new 
                subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 179F.''.
            (2) Section 312(k)(3)(B) is amended--
                    (A) in the heading, by striking ``or 179e'' and 
                inserting ``179e, or 179f'', and
                    (B) by striking ``or 179E'' and inserting ``179E, 
                or 179F''.
            (3) Section 1016(a) is amended--
                    (A) in paragraph (36), by striking ``and'' at the 
                end,
                    (B) in paragraph (37), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by inserting at the end the following new 
                paragraph:
            ``(38) to the extent provided in section 179D(f).''.
            (4) Section 1245(a) is amended--
                    (A) in paragraph (2)(C), by inserting ``179F,'' 
                after ``179E,'', and
                    (B) in paragraph (3)(C), by inserting ``179F,'' 
                after ``179E,''.
            (5) The table of sections for part VI of subchapter B of 
        chapter 1 is amended by inserting after the item relating to 
        section 179E the following new item:

``Sec. 179F. Deduction for energy efficiency improvements to commercial 
                            buildings.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any energy efficiency improvements placed in service after 
December 31, 2017.

              Subtitle D--Clean Electricity and Fuel Bonds

SEC. 5041. CLEAN ENERGY BONDS.

    (a) In General.--Subpart J of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 54BB. CLEAN ENERGY BONDS.

    ``(a) In General.--If a taxpayer holds a clean energy bond on one 
or more interest payment dates of the bond during any taxable year, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a clean 
energy bond is 28 percent of the amount of interest payable by the 
issuer with respect to such date.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Clean Energy Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `clean energy bond' means any bond issued as part of an issue 
        if--
                    ``(A) 100 percent of the excess of the available 
                project proceeds (as defined in section 54A(e)(4)) of 
                such issue over the amounts in a reasonably required 
                reserve (within the meaning of section 150(a)(3)) with 
                respect to such issue are to be used for capital 
                expenditures incurred by an entity described in 
                subparagraph (B) for 1 or more qualified facilities,
                    ``(B) the bond is issued by--
                            ``(i) a governmental body (as defined in 
                        paragraph (3) of section 54C(d)),
                            ``(ii) a public power provider (as defined 
                        in paragraph (2) of such section), or
                            ``(iii) a cooperative electric company (as 
                        defined in paragraph (4) of such section), and
                    ``(C) the issuer makes an irrevocable election to 
                have this section apply.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) for purposes of section 149(b), a clean 
                energy bond shall not be treated as federally 
                guaranteed by reason of the credit allowed under 
                subsection (a) or section 6433,
                    ``(B) for purposes of section 148, the yield on a 
                clean energy bond shall be determined without regard to 
                the credit allowed under subsection (a), and
                    ``(C) a bond shall not be treated as a clean energy 
                bond if the issue price has more than a de minimis 
                amount (determined under rules similar to the rules of 
                section 1273(a)(3)) of premium over the stated 
                principal amount of the bond.
            ``(3) Qualified facility.--The term `qualified facility' 
        means a facility--
                    ``(A) which is described in subsection (e)(3) of 
                section 45S and has a greenhouse gas emissions rate of 
                less than 186 grams of CO<INF>2</INF>e per KWh (as such 
                terms are defined in subsections (b)(1) and (e)(1) of 
                such section), or
                    ``(B) which is described in subsection (e)(4) of 
                section 45T and only produces transportation fuel which 
                has an emissions rate of less than 38.62 kilograms of 
                CO<INF>2</INF>e per mmBTU (as such terms are defined in 
                subsections (b) and (e) of such section).
    ``(e) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the clean energy bond is entitled to a payment of interest 
under such bond.
    ``(f) Credit Phase Out.--
            ``(1) Electrical production.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of a clean energy bond for which the proceeds 
                are used for capital expenditures incurred by an entity 
                for a qualified facility described in subsection 
                (d)(3)(A), if the Secretary, in consultation with the 
                Secretary of Energy and the Administrator of the 
                Environmental Protection Agency, determines that the 
                annual greenhouse gas emissions from electrical 
                production in the United States are equal to or less 
                than the percentage specified in section 45S(d)(1), the 
                amount of the credit determined under subsection (b) 
                with respect to any clean energy bond issued during a 
                calendar year described in paragraph (3) shall be equal 
                to the product of--
                            ``(i) the amount determined under 
                        subsection (b) without regard to this 
                        subsection, multiplied by
                            ``(ii) the phase-out percentage under 
                        paragraph (3).
                    ``(B) Deadline to begin phase-out.--If the 
                Secretary, in consultation with the Secretary of Energy 
                and the Administrator of the Environmental Protection 
                Agency, determines that the annual greenhouse gas 
                emissions from electrical production in the United 
                States for each year before calendar year 2026 are 
                greater than the percentage specified in section 
                45S(d)(1), then the determination described in 
                subparagraph (A) shall be deemed to have been made for 
                calendar year 2025.
            ``(2) Fuel production.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of a clean energy bond for which the proceeds 
                are used for capital expenditures incurred by an entity 
                for a qualified facility described in subsection 
                (d)(3)(B), if the Secretary, in consultation with the 
                Secretary of Energy and the Administrator of the 
                Environmental Protection Agency, determines that the 
                annual greenhouse gas emissions from transportation 
                fuel produced and sold at retail annually in the United 
                States are equal to or less than the percentage 
                specified in section 45T(d)(1), the amount of the 
                credit determined under subsection (b) with respect to 
                any clean energy bond issued during a calendar year 
                described in paragraph (3) shall be equal to the 
                product of--
                            ``(i) the amount determined under 
                        subsection (b) without regard to this 
                        subsection, multiplied by
                            ``(ii) the phase-out percentage under 
                        paragraph (3).
                    ``(B) Deadline to begin phase-out.--If the 
                Secretary, in consultation with the Secretary of Energy 
                and the Administrator of the Environmental Protection 
                Agency, determines that the annual greenhouse gas 
                emissions from transportation fuel produced and sold at 
                retail annually in the United States for each year 
                before calendar year 2026 are greater than the 
                percentage specified in section 45T(d)(1), then the 
                determination described in subparagraph (A) shall be 
                deemed to have been made for calendar year 2025.
            ``(3) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for any bond issued during the first calendar 
                year following the calendar year in which the 
                determination described in paragraph (1)(A) or (2)(A) 
                is made, 75 percent,
                    ``(B) for any bond issued during the second 
                calendar year following such determination year, 50 
                percent,
                    ``(C) for any bond issued during the third calendar 
                year following such determination year, 25 percent, and
                    ``(D) for any bond issued during any calendar year 
                subsequent to the year described in subparagraph (C), 0 
                percent.
    ``(g) Special Rules.--
            ``(1) Interest on clean energy bonds includible in gross 
        income for federal income tax purposes.--For purposes of this 
        title, interest on any clean energy bond shall be includible in 
        gross income.
            ``(2) Application of certain rules.--Rules similar to the 
        rules of subsections (f), (g), (h), and (i) of section 54A 
        shall apply for purposes of the credit allowed under subsection 
        (a).
    ``(h) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section and section 6433.''.
    (b) Credit for Qualified Clean Energy Bonds Allowed to Issuer.--
Subchapter B of chapter 65 of subtitle F is amended by adding at the 
end the following new section:

``SEC. 6433. CREDIT FOR QUALIFIED CLEAN ENERGY BONDS ALLOWED TO ISSUER.

    ``(a) In General.--The issuer of a qualified clean energy bond 
shall be allowed a credit with respect to each interest payment under 
such bond which shall be payable by the Secretary as provided in 
subsection (b).
    ``(b) Payment of Credit.--
            ``(1) In general.--The Secretary shall pay 
        (contemporaneously with each interest payment date under such 
        bond) to the issuer of such bond (or to any person who makes 
        such interest payments on behalf of the issuer) 28 percent of 
        the interest payable under such bond on such date.
            ``(2) Interest payment date.--For purposes of this 
        subsection, the term `interest payment date' means each date on 
        which interest is payable by the issuer under the terms of the 
        bond.
    ``(c) Application of Arbitrage Rules.--For purposes of section 148, 
the yield on a qualified clean energy bond shall be reduced by the 
credit allowed under this section.
    ``(d) Qualified Clean Energy Bond.--For purposes of this section, 
the term `qualified clean energy bond' means a clean energy bond (as 
defined in section 54BB(d)) issued as part of an issue if the issuer, 
in lieu of any credit allowed under section 54BB(a) with respect to 
such bond, makes an irrevocable election to have this section apply.''.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart J of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54BB. Clean energy bonds.''.
            (2) The heading of such subpart (and the item relating to 
        such subpart in the table of subparts for part IV of subchapter 
        A of chapter 1) are each amended by striking ``Build America 
        Bonds''and inserting ``Build America Bonds and Clean Energy 
        Bonds''.
            (3) The table of sections for subchapter B of chapter 65 of 
        subtitle F is amended by adding at the end the following new 
        item:

``Sec. 6433. Credit for qualified clean energy bonds allowed to 
                            issuer.''.
            (4) Subparagraph (A) of section 6211(b)(4) is amended by 
        striking ``and 6431'' and inserting ``6431, and 6433''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

         Subtitle E--Treatment of Tar Sands Under Excise Taxes

SEC. 5051. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR EXCISE TAX 
              PURPOSES.

    (a) In General.--Paragraph (1) of section 4612(a) is amended to 
read as follows:
            ``(1) Crude oil.--The term `crude oil' includes crude oil 
        condensates, natural gasoline, synthetic petroleum, any bitumen 
        or bituminous mixture, any oil derived from a bitumen or 
        bituminous mixture, and any oil derived from kerogen-bearing 
        sources.''.
    (b) Technical Amendment.--Paragraph (2) of section 4612(a) is 
amended by striking ``from a well located''.
    (c) Effective Date.--The amendments made by this section shall 
apply to oil and petroleum products received, entered, used, or 
exported during calendar quarters beginning more than 60 days after the 
date of the enactment of this Act.

               Subtitle F--Closing Big Oil Tax Loopholes

SEC. 5061. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO 
              MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
              TAXPAYERS.

    (a) In General.--Section 901 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) the 
following new subsection:
    ``(n) Special Rules Relating to Major Integrated Oil Companies 
Which Are Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer which is a major integrated oil company (within the 
        meaning of section 167(h)(5)) to a foreign country or 
        possession of the United States for any period shall not be 
        considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if the generally 
                        applicable income tax imposed by the country or 
                        possession were applicable to such dual 
                        capacity taxpayer.
        Nothing in this paragraph shall be construed to imply the 
        proper treatment of any such amount not in excess of the amount 
        determined under subparagraph (B).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Generally applicable income tax.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `generally applicable 
                income tax' means an income tax (or a series of income 
                taxes) which is generally imposed under the laws of a 
                foreign country or possession on income derived from 
                the conduct of a trade or business within such country 
                or possession.
                    ``(B) Exceptions.--Such term shall not include a 
                tax unless it has substantial application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are citizens or 
                        residents of the foreign country or 
                        possession.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxes paid or accrued in taxable years beginning after 
        the date of the enactment of this Act.
            (2) Contrary treaty obligations upheld.--The amendments 
        made by this section shall not apply to the extent contrary to 
        any treaty obligation of the United States.

SEC. 5062. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, 
              NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction.--Paragraph (4) of section 199(c) is 
amended by adding at the end the following new subparagraph:
                    ``(E) Special rule for certain oil and gas 
                income.--In the case of any taxpayer who is a major 
                integrated oil company (within the meaning of section 
                167(h)(5)) for the taxable year, the term `domestic 
                production gross receipts' shall not include gross 
                receipts from the production, refining, processing, 
                transportation, or distribution of oil, gas, or any 
                primary product (within the meaning of subsection 
                (d)(9)) thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 5063. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED AMOUNTS.

    (a) In General.--Section 263(c) is amended to read as follows:
    ``(c) Intangible Drilling and Development Costs in the Case of Oil 
and Gas Wells and Geothermal Wells.--
            ``(1) In general.--Notwithstanding subsection (a), and 
        except as provided in subsection (i), regulations shall be 
        prescribed by the Secretary under this subtitle corresponding 
        to the regulations which granted the option to deduct as 
        expenses intangible drilling and development costs in the case 
        of oil and gas wells and which were recognized and approved by 
        the Congress in House Concurrent Resolution 50, Seventy-ninth 
        Congress. Such regulations shall also grant the option to 
        deduct as expenses intangible drilling and development costs in 
        the case of wells drilled for any geothermal deposit (as 
        defined in section 613(e)(2)) to the same extent and in the 
        same manner as such expenses are deductible in the case of oil 
        and gas wells. This subsection shall not apply with respect to 
        any costs to which any deduction is allowed under section 59(e) 
        or 291.
            ``(2) Exclusion.--
                    ``(A) In general.--This subsection shall not apply 
                to amounts paid or incurred by a taxpayer in any 
                taxable year in which such taxpayer is a major 
                integrated oil company (within the meaning of section 
                167(h)(5)).
                    ``(B) Amortization of amounts not allowable as 
                deductions under subparagraph (a).--The amount not 
                allowable as a deduction for any taxable year by reason 
                of subparagraph (A) shall be allowable as a deduction 
                ratably over the 60-month period beginning with the 
                month in which the costs are paid or incurred. For 
                purposes of section 1254, any deduction under this 
                subparagraph shall be treated as a deduction under this 
                subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2015.

SEC. 5064. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS 
              WELLS.

    (a) In General.--Section 613A is amended by adding at the end the 
following new subsection:
    ``(f) Application With Respect to Major Integrated Oil Companies.--
In the case of any taxable year in which the taxpayer is a major 
integrated oil company (within the meaning of section 167(h)(5)), the 
allowance for percentage depletion shall be zero.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 5065. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Section 193 is amended by adding at the end the 
following new subsection:
    ``(d) Application With Respect to Major Integrated Oil Companies.--
            ``(1) In general.--This section shall not apply to amounts 
        paid or incurred by a taxpayer in any taxable year in which 
        such taxpayer is a major integrated oil company (within the 
        meaning of section 167(h)(5)).
            ``(2) Amortization of amounts not allowable as deductions 
        under paragraph (1).--The amount not allowable as a deduction 
        for any taxable year by reason of paragraph (1) shall be 
        allowable as a deduction ratably over the 60-month period 
        beginning with the month in which the costs are paid or 
        incurred.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2015.

                 TITLE VI--CONSERVATION REAUTHORIZATION

SEC. 6001. NATIONAL PARK SERVICE CENTENNIAL FUND.

    (a) In General.--Chapter 1049 of title 54, United States Code, is 
amended by adding at the end the following:
``Sec. 104908. National Park Service Centennial Fund
    ``(a) In General.--There is established in the Treasury a fund, to 
be known as the `National Park Service Centennial Fund' (referred to in 
this section as the `Fund').
    ``(b) Deposits to Fund.--Notwithstanding any provision of law 
providing that the proceeds shall be credited to miscellaneous receipts 
of the Treasury, for each fiscal year, there shall be deposited in the 
Fund, from revenues due and payable to the United States under section 
9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338), 
$150,000,000.
    ``(c) Availability.--Amounts deposited in the Fund shall be made 
available for expenditure, without further appropriation or fiscal year 
limitation, in accordance with this section.
    ``(d) Use of Fund.--The Secretary shall use amounts in the Fund for 
critical National Park System maintenance and infrastructure needs and 
other projects and programs that will better enable the National Park 
Service to protect park resources and provide improved visitor 
services.
    ``(e) Land Acquisition Prohibition.--Amounts in the Fund shall not 
be used for land acquisition.''.
    (b) Clerical Amendment.--The table of sections for chapter 1049 of 
title 54, United States Code, is amended by inserting after the item 
relating to section 104907 the following:

``Sec. 104908. National Park Service Centennial Fund.''.

SEC. 6002. LAND AND WATER CONSERVATION FUND.

    (a) Permanent Authorization.--Section 200302 of title 54, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``During the period ending September 30, 2015, 
        there'' and inserting ``There''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``through 
                September 30, 2015''; and
            (3) by striking paragraph (3).
    (b) Full Funding.--Section 200303 of title 54, United States Code, 
is amended to read as follows:
``Sec. 200303. Availability of funds
    ``(a) In General.--Amounts deposited in the Fund under section 
200302 on or after the date of enactment of the American Energy 
Innovation Act shall be made available for expenditure, without further 
appropriation or fiscal year limitation, to carry out the purposes of 
the Fund (including accounts and programs made available from the Fund 
under the Consolidated and Further Continuing Appropriations Act, 2015 
(Public Law 113-235)).
    ``(b) Additional Amounts.--Amounts made available under subsection 
(a) shall be in addition to amounts made available to the Fund under 
section 105 of the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note; Public Law 109-432) or otherwise appropriated from 
the Fund.
    ``(c) Allocation Authority.--
            ``(1) Submission of cost estimates.--The President shall 
        submit to Congress detailed account, program, and project 
        allocations to be funded under subsection (a) as part of the 
        annual budget submission of the President.
            ``(2) Alternate allocation.--
                    ``(A) In general.--Appropriations Acts may provide 
                for alternate allocation of amounts made available 
                under subsection (a), including allocations by account 
                and program.
                    ``(B) Allocation by president.--
                            ``(i) No alternate allocations.--If 
                        Congress has not enacted legislation 
                        establishing alternate allocations by the date 
                        that is 120 days after the date on which the 
                        applicable fiscal year begins, amounts made 
                        available under subsection (a) shall be 
                        allocated by the President.
                            ``(ii) Insufficient alternate allocation.--
                        If Congress enacts legislation establishing 
                        alternate allocations for amounts made 
                        available under subsection (a) that are less 
                        than the full amount appropriated under that 
                        subsection, the difference between the amount 
                        appropriated and the alternate allocation shall 
                        be allocated by the President.
            ``(3) Annual report.--The President shall submit to 
        Congress an annual report that describes the final allocation 
        by account, program, and project of amounts made available 
        under subsection (a), including a description of the status of 
        obligations and expenditures.''.
    (c) Clerical Amendment.--The table of sections for title 54 is 
amended by striking the item relating to section 200303 and inserting 
the following:

``Sec. 200303. Availability of funds.''.
    (d) Public Access.--Section 200306 of title 54, United States Code, 
is amended by adding at the end the following:
    ``(c) Public Access.--Not less than 1.5 percent of the annual 
authorized funding amount shall be made available each year for 
projects that secure recreational public access to existing Federal 
public land for hunting, fishing, or other recreational purposes.''.

SEC. 6003. HISTORIC PRESERVATION FUND.

    (a) Authorization.--Section 303102 of title 54, United States Code, 
is amended by striking ``of fiscal years 2012 to 2015'' and inserting 
``fiscal year''.
    (b) Use and Availability.--Section 303103 of title 54, United 
States Code, is amended by striking the first sentence and inserting 
the following: ``Amounts deposited in the Historic Preservation Fund on 
or after the date of enactment of the American Energy Innovation Act 
shall only be used to carry out this division and shall be available 
for expenditure without further appropriation.''.
                                                       Calendar No. 241

114th CONGRESS

  1st Session

                                S. 2089

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 29, 2015

            Read the second time and placed on the calendar
```