II 

110TH CONGRESS 

1ST SESSION S. 1602 

To improve the energy security of the United States by promoting diverse 

energy supplies and energy efficiency, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 12, 2007 

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

to the Committee on Energy and Natural Resources 

A BILL 

To improve the energy security of the United States by 

promoting diverse energy supplies and energy efficiency, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Clean, Reliable, Efficient and Secure Energy Act of 

6 2007’’. 

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

8 this Act is as follows: 

Sec. 1. Short Title; Table of Contents. 

Sec. 2. Definition of Secretary. 


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TITLE I—ELECTRICITY SECTOR 

Sec. 101. Efficiency in Electricity Use. 

Sec. 102. Incentives for Utility Investment in Smart Grid. 

Sec. 103. Clean Energy Portfolio Standard. 

Sec. 104. Nuclear Fuel Management and Disposal. 

Sec. 105. Advanced Coal Generation. 

TITLE II—TRANSPORTATION SECTOR 

Sec. 201. Automobile Fuel Economy. 

Sec. 202. Report on Average Fuel Economy of Federal Fleet. 

Sec. 203. Traffic Signal Coordination. 

Sec. 204. Renewable Content of Diesel Fuel. 

Sec. 205. Coal-to-Liquid and Gas-to-Liquid Technologies. 

Sec. 206. Availability of Certain Areas of the Outer Continental Shelf for Leasing. 

TITLE III—BUILDINGS AND MANUFACTURING SECTOR 

Sec. 301. Energy Efficiency in Federal Buildings. 

Sec. 302. Energy Efficiency in Public Schools. 

Sec. 303. Manufacturing Processes and Materials Energy Use Commission. 

Sec. 304. Greenfield Study. 

TITLE IV—NATIONAL CLIMATE CHANGE POLICY 

Sec. 401. National Greenhouse Gas Emissions Registry. 

Sec. 402. Report on Industrial Applications of Carbon Dioxide. 

Sec. 403. National Carbon Dioxide Storage Assessment. 

Sec. 404. Liability of Full Carbon Storage Facilities and Depleted Oil Fields. 

Sec. 405. Funding. 

TITLE V— STUDIES, ENERGY DAY, AND REESTABLISHMENT OF 

THE OFFICE OF TECHNOLOGICAL ASSESSMENT 

Subtitle A—Studies 

Sec. 501. Study of the Replacement of HVACR Equipment. 

Sec. 502. Study on Fuel Economy Standards for Heavy Trucks. 

Sec. 503. Study of the Use of Synthetic Fuel in Commercial Aircraft. 

Sec. 504. Study of Infrastructure Needs for Significant Use of Renewable 

Fuels. 

Sec. 505. Study on a Strategic Natural Gas Reserve. 

Subtitle B—Energy Education 

Sec. 511. Energy Day. 

Sec. 512. Energy Efficient Education Programs. 

Subtitle C—Office of Technological Assessment 

Sec. 521. Reestablishment of the Office of Technological Assessment. 

Sec. 522. Authorization of Appropriations. 


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1 SEC. 2. DEFINITION OF SECRETARY. 

2 (1) In this Act, the term ‘‘Secretary’’ means the 

3 Secretary of Energy. 

4 TITLE I—ELECTRICITY SECTOR 

5 SEC. 101. EFFICIENCY IN ELECTRICITY USE. 

6 (a) FINDINGS.—Congress finds: 

7 (1) The electricity sector is responsible for 42 

8 percent of the energy consumed and 40 percent of 

9 the carbon dioxide emitted in the U.S. 

10 (2) Energy efficiency is the quickest way to re11 duce electricity consumption in the U.S. 

12 (3) The setting of energy efficiency appliance 

13 standards requires a new framework in order to 

14 speed the diffusion of technological advances into the 

15 market place. 

16 (4) Clean technologies of all kinds are required 

17 to enhance the national security of the U.S. and re18 duce U.S. greenhouse gas emissions. Due to the se19 curity implications of clean technologies, electric 

20 generators should not be limited in the clean genera21 tion technologies available to them for credit. 

22 (5) Nuclear power requires a waste storage so23 lution. Regardless of any future policy changes, 

24 waste storage will always be required. 

25 (6) Regulations have prevented the dissemina26 tion of advanced clean coal generation technology. 


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1 Increases in efficiency and reducing the need to 

2 build new generation facilities should be balanced 

3 with clean air standards. 

4 (b) APPLIANCE EFFICIENCY STANDARDS COMMIS5 SION.—Section 325 of the Energy Policy and Conserva6 tion Act (42 U.S.C. 6295) is amended by adding at the 

7 end the following: 

8 ‘‘(hh) APPLIANCE EFFICIENCY STANDARDS COMMIS9 SION.— 

10 ‘‘(1) ESTABLISHMENT.— 

11 ‘‘(A) ESTABLISHMENT.—There is estab12 lished a commission to be known as the ‘Appli13 ance Efficiency Standards Commission’ (re14 ferred to in this subsection as the ‘Commis15 sion’). 

16 ‘‘(B) MEMBERSHIP.— 

17 ‘‘(i) COMPOSITION.—The Commission 

18 shall be composed of 14 members ap19 pointed by the President, of whom— 

20 ‘‘(I) 5 members shall be ap21 pointed to represent energy and man22 ufacturing industries; 

23 ‘‘(II) 3 members shall be ap24 pointed to represent consumer organi25 zations; 


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1 ‘‘(III) 2 members shall be ap2 pointed from nongovernmental organi3 zations that specialize in energy effi4 ciency, environmental protection, or 

5 consumer advocacy; and 

6 ‘‘(IV) 1 member shall be ap7 pointed from each of— 

8 ‘‘(aa) the Department of 

9 Commerce; 

10 ‘‘(bb) the National Academy 

11 of Sciences; 

12 ‘‘(cc) the Department of En13 ergy; and 

14 ‘‘(dd) the Environmental 

15 Protection Agency. 

16 ‘‘(ii) DATE OF APPOINTMENTS.—The 

17 appointment of a member of the Commis18 sion shall be made not later than 90 days 

19 after the date of enactment of this sub20 section. 

21 ‘‘(C) TERM; VACANCIES.— 

22 ‘‘(i) TERM.—Subject to clause (ii), the 

23 term of office of a member of the Commis24 sion shall be 3 years. 


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1 ‘‘(ii) STAGGERED INITIAL TERMS.—Of 

2 the initial members of the Commission ap3 pointed under clause (i), the term of office 

4 of— 

5 ‘‘(I) 5 members shall be 3 years; 

6 ‘‘(II) 5 members shall be 2 years; 

7 and 

8 ‘‘(III) 4 members shall be 1 year. 

9 ‘‘(iii) VACANCIES.—A vacancy on the 

10 Commission— 

11 ‘‘(I) shall not affect the powers of 

12 the Commission; and 

13 ‘‘(II) shall be filled in the same 

14 manner as the original appointment 

15 was made. 

16 ‘‘(D) INITIAL MEETING.—Not later than 

17 30 days after the date on which all members of 

18 the Commission have been appointed, the Com19 mission shall hold the initial meeting of the 

20 Commission. 

21 ‘‘(E) MEETINGS.—The Commission shall 

22 meet at the call of the Chairperson. 

23 ‘‘(F) QUORUM.—A majority of the mem24 bers of the Commission shall constitute a 


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1 quorum, but a lesser number of members may 

2 hold hearings. 

3 ‘‘(G) CHAIRPERSON AND VICE CHAIR4 PERSON.—The Commission shall select a Chair5 person and Vice Chairperson from among the 

6 members of the Commission. 

7 ‘‘(2) DUTIES.—The Commission shall— 

8 ‘‘(A) conduct ongoing studies of the estab9 lishment or improvement of energy conservation 

10 standards and test protocols for consumer 

11 goods and appliances that will reduce the use of 

12 electricity use of consumer products and im13 prove the competitiveness of the United States; 

14 and 

15 ‘‘(B) based on the studies, make rec16 ommendations to the Secretary for the estab17 lishment or improvement of energy conservation 

18 standards and test protocols through expedited 

19 rulemaking under subsection (ii). 

20 ‘‘(3) POWERS.— 

21 ‘‘(A) HEARINGS.—The Commission may 

22 hold such hearings, meet and act at such times 

23 and places, take such testimony, and receive 

24 such evidence as the Commission considers ad25 visable to carry out this subsection. 


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1 ‘‘(B) INFORMATION FROM FEDERAL AGEN2 CIES.— 

3 ‘‘(i) IN GENERAL.—The Commission 

4 may secure directly from a Federal agency 

5 such information as the Commission con6 siders necessary to carry out this sub7 section. 

8 ‘‘(ii) PROVISION OF INFORMATION.— 

9 On request of the Chairperson of the Com10 mission, the head of the agency shall pro11 vide the information to the Commission. 

12 ‘‘(C) POSTAL SERVICES.—The Commission 

13 may use the United States mails in the same 

14 manner and under the same conditions as other 

15 agencies of the Federal Government. 

16 ‘‘(D) GIFTS.—The Commission may ac17 cept, use, and dispose of gifts or donations of 

18 services or property. 

19 ‘‘(4) COMMISSION PERSONNEL MATTERS.— 

20 ‘‘(A) COMPENSATION OF MEMBERS.— 

21 ‘‘(i) NON-FEDERAL EMPLOYEES.—A 

22 member of the Commission who is not an 

23 officer or employee of the Federal Govern24 ment shall be compensated at a rate equal 

25 to the daily equivalent of the annual rate 


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1 of basic pay prescribed for level IV of the 

2 Executive Schedule under section 5315 of 

3 title 5, United States Code, for each day 

4 (including travel time) during which the 

5 member is engaged in the performance of 

6 the duties of the Commission. 

7 ‘‘(ii) FEDERAL EMPLOYEES.—A mem8 ber of the Commission who is an officer or 

9 employee of the Federal Government shall 

10 serve without compensation in addition to 

11 the compensation received for the services 

12 of the member as an officer or employee of 

13 the Federal Government. 

14 ‘‘(B) TRAVEL EXPENSES.—A member of 

15 the Commission shall be allowed travel ex16 penses, including per diem in lieu of subsist17 ence, at rates authorized for an employee of an 

18 agency under subchapter I of chapter 57 of title 

19 5, United States Code, while away from the 

20 home or regular place of business of the mem21 ber in the performance of the duties of the 

22 Commission. 

23 ‘‘(C) STAFF.— 

24 ‘‘(i) IN GENERAL.—The Chairperson 

25 of the Commission may, without regard to 


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1 the civil service laws (including regula2 tions), appoint and terminate an executive 

3 director and such other additional per4 sonnel as are necessary to enable the Com5 mission to perform the duties of the Com6 mission. 

7 ‘‘(ii) CONFIRMATION OF EXECUTIVE

8 DIRECTOR.—The employment of an execu9 tive director shall be subject to confirma10 tion by the Commission. 

11 ‘‘(iii) COMPENSATION.— 

12 ‘‘(I) IN GENERAL.—Except as 

13 provided in subparagraph (B), the 

14 Chairperson of the Commission may 

15 fix the compensation of the executive 

16 director and other personnel without 

17 regard to the provisions of chapter 51 

18 and subchapter III of chapter 53 of 

19 title 5, United States Code, relating to 

20 classification of positions and General 

21 Schedule pay rates. 

22 ‘‘(II) MAXIMUM RATE OF PAY.— 

23 The rate of pay for the executive di24 rector and other personnel shall not 

25 exceed the rate payable for level V of 


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1 the Executive Schedule under section 

2 5316 of title 5, United States Code. 

3 ‘‘(D) DETAIL OF FEDERAL GOVERNMENT

4 EMPLOYEES.— 

5 ‘‘(i) IN GENERAL.—An employee of 

6 the Federal Government may be detailed to 

7 the Commission without reimbursement. 

8 ‘‘(ii) CIVIL SERVICE STATUS.—The 

9 detail of the employee shall be without 

10 interruption or loss of civil service status 

11 or privilege. 

12 ‘‘(E) PROCUREMENT OF TEMPORARY AND

13 INTERMITTENT SERVICES.—The Chairperson of 

14 the Commission may procure temporary and 

15 intermittent services in accordance with section 

16 3109(b) of title 5, United States Code, at rates 

17 for individuals that do not exceed the daily 

18 equivalent of the annual rate of basic pay pre19 scribed for level V of the Executive Schedule 

20 under section 5316 of that title. 

21 ‘‘(5) ADMINISTRATION.—Section 14 of the Fed22 eral Advisory Committee Act (5 U.S.C. App.) shall 

23 not apply to the Commission. 

24 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.— 

25 There are authorized to be appropriated such sums 


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1 as are necessary to carry out this subsection, to re2 main available until expended.’’. 

3 (c) EXPEDITED RULEMAKINGS.—Section 325 of the 

4 Energy Policy and Conservation Act (42 U.S.C. 6295) (as 

5 amended by subsection (b)) is amended by adding at the 

6 end the following: 

7 ‘‘(ii) EXPEDITED RULEMAKING FOR STANDARDS

8 RECOMMENDED BY APPLIANCE EFFICIENCY STANDARDS

9 COMMISSION.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall con11 duct an expedited rulemaking based on each energy 

12 conservation standard or test procedure rec13 ommended by the Appliance Efficiency Standards 

14 Commission established under subsection (hh). 

15 ‘‘(2) PROCEDURE.— 

16 ‘‘(A) IN GENERAL.—Notwithstanding sub17 section (p) or section 336(a), if the Secretary 

18 receives a recommendation of the Appliance Ef19 ficiency Standards Commission, the Secretary 

20 shall conduct an expedited rulemaking with re21 spect to the standard or test procedure pro22 posed in the recommendation in accordance 

23 with this paragraph. 

24 ‘‘(B) ADVANCED NOTICE OF PROPOSED

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1 posed rulemaking has been issued under sub2 section (p)(1) with respect to the rulemaking 

3 covered by the recommendation, the require4 ments of subsection (p) with respect to the 

5 issuance of an advanced notice of proposed 

6 rulemaking shall not apply. 

7 ‘‘(C) PROPOSED RULE.— 

8 ‘‘(i) PUBLICATION.—Not later than 

9 30 days after the receipt of a recommenda10 tion described in paragraph (1), the Sec11 retary shall publish a proposed rule pro12 posing the standard or test procedure cov13 ered by the recommendation. 

14 ‘‘(ii) PUBLIC COMMENT PERIOD.— 

15 Notwithstanding paragraphs (2) and (3) of 

16 subsection (p), the public comment period 

17 for the proposed rule shall be the 30-day 

18 period beginning on the date of publication 

19 of the proposed rule in the Federal Reg20 ister. 

21 ‘‘(iii) PUBLIC HEARING.—Notwith22 standing section 336(a), the Secretary may 

23 waive the holding of a public hearing with 

24 respect to the proposed rule. 


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1 ‘‘(D) FINAL RULE.—Notwithstanding sub2 section (p)(4), the Secretary— 

3 ‘‘(i) may publish a final rule at any 

4 time after the 60-day period beginning on 

5 the date of publication of the proposed rule 

6 in the Federal Register; and 

7 ‘‘(ii) shall publish a final rule not 

8 later than 120 days after the date of publi9 cation of the proposed rule in the Federal 

10 Register.’’. 

11 SEC. 102. INCENTIVES FOR UTILITY INVESTMENT IN SMART 

12 GRID. 

13 Section 111(d) of the Public Utility Regulatory Poli14 cies Act of 1978 (16 U.S.C. 2621(d)) is amended by add15 ing at the end the following: 

16 ‘‘(16) UTILITY INVESTMENT IN SMART GRID IN17 VESTMENTS.—Each electric utility shall, before un18 dertaking investments in nonadvanced grid tech19 nologies, demonstrate that alternative investments in 

20 advanced grid technologies have been considered, in21 cluding from a standpoint of cost-effectiveness. 

22 ‘‘(17) SMART GRID INCENTIVES.—Each electric 

23 utility shall be permitted— 

24 ‘‘(A) to recover from ratepayers the capital 

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1 curred by the utility for a qualified smart grid 

2 system, including an enhanced rate of return on 

3 the capital expenditures of the utility for the 

4 smart grid system; and 

5 ‘‘(B) to recover in a timely manner the 

6 costs of equipment rendered obsolete by the de7 ployment of a smart grid system, based on the 

8 remaining depreciable life of the obsolete equip9 ment.’’. 

10 SEC. 103. CLEAN ENERGY PORTFOLIO STANDARD. 

11 Title VI of the Public Utility Regulatory Policies Act 

12 of 1978 (16 U.S.C. 2601 et seq.) is amended by adding 

13 at the end the following: 

14 ‘‘SEC. 610. CLEAN ENERGY PORTFOLIO STANDARD. 

15 ‘‘(a) FINDINGS.—Congress finds that— 

16 ‘‘(1) the development of clean energy resources 

17 of the United States is a matter of national security 

18 and energy security; 

19 ‘‘(2) a Federal clean energy portfolio standard 

20 will help improve the air quality of the United States 

21 by increasing the use of electricity generating tech22 nologies without the production of harmful emis23 sions; 

24 ‘‘(3) a clean energy portfolio standard may— 


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1 ‘‘(A) help diversify fuel sources used for 

2 electricity generation; 

3 ‘‘(B) encourage the conservation of energy 

4 sources; 

5 ‘‘(C) provide more reliable electricity 

6 through diversification and conservation, thus 

7 reducing the overall cost of electric generation; 

8 ‘‘(D) promote renewable generation tech9 nologies; and 

10 ‘‘(E) significantly reduce future carbon di11 oxide emissions; 

12 ‘‘(4) a Federal clean energy portfolio standard 

13 should be applied to the total electric sales made by 

14 retailers to consumers— 

15 ‘‘(A) to ensure the most effective use of re16 sources and facilities in existence on the date of 

17 enactment of this section; and 

18 ‘‘(B) to ensure that a significant portion of 

19 the increased future demand for electricity is 

20 served by clean energy resources; 

21 ‘‘(5) approximately 30 percent of the total sales 

22 of electricity in the United States is generated 

23 through clean energy resources such as hydropower, 

24 nuclear, and renewable technologies; and 


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1 ‘‘(6) it is the goal of a Federal clean energy 

2 portfolio standard that 50 percent of the total retail 

3 sales of electricity in the Untied States be generated 

4 through clean energy resources by calendar year 

5 2035. 

6 ‘‘(b) DEFINITIONS.—In this section: 

7 ‘‘(1) ASSOCIATE COMPANY.—The term ‘asso8 ciate company’ has the meaning given the term in 

9 section 1262 of the Public Utility Holding Company 

10 Act of 2005 (42 U.S.C. 16451). 

11 ‘‘(2) BASE QUANTITY OF A RETAIL ELECTRIC

12 SUPPLIER.—The term ‘base quantity of a retail elec13 tric supplier’ means the average annual quantity of 

14 electric energy, expressed in terms of kilowatt-hours, 

15 sold by a retail electric supplier to electric con16 sumers for purposes— 

17 ‘‘(A) other than resale during calendar 

18 years 2010 to 2012; or 

19 ‘‘(B) as otherwise determined by the Sec20 retary. 

21 ‘‘(3) BIOMASS.— 

22 ‘‘(A) IN GENERAL.—The term ‘biomass’ 

23 means any organic material that is available on 

24 a renewable or recurring basis, including— 

25 ‘‘(i) dedicated energy crops; 


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1 ‘‘(ii) trees grown for energy produc2 tion; 

3 ‘‘(iii) wood waste and wood residues; 

4 ‘‘(iv) plants (including aquatic plants, 

5 grasses and agricultural crops); 

6 ‘‘(v) residues; 

7 ‘‘(vi) fibers; 

8 ‘‘(vii) animal wastes and other organic 

9 waste materials; and 

10 ‘‘(viii) fats and oils. 

11 ‘‘(B) INCLUSIONS.—The term ‘biomass’ in12 cludes only organic material from— 

13 ‘‘(i) thinnings from trees that are less 

14 than 12 inches in diameter; 

15 ‘‘(ii) slash; 

16 ‘‘(iii) brush; and 

17 ‘‘(iv) mill residues. 

18 ‘‘(C) EXCLUSIONS.—The term ‘biomass’ 

19 does not include any material removed from 

20 National Forest System land, unless the re21 moval is part of a forest management plan. 

22 ‘‘(4) CLEAN ENERGY.—The term ‘clean energy’ 

23 means electric energy generated by a clean energy 

24 resource. 

25 ‘‘(5) CLEAN ENERGY RESOURCE.— 


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1 ‘‘(A) IN GENERAL.—The term ‘clean en2 ergy resource’ means energy from— 

3 ‘‘(i) solar energy; 

4 ‘‘(ii) wind; 

5 ‘‘(iii) ocean energy (including tidal, 

6 wave, and current); 

7 ‘‘(iv) geothermal energy; 

8 ‘‘(v) fuel cells (including zero emission 

9 regenerative fuel cell technology); 

10 ‘‘(vi) solid waste (as that term is de11 fined in section 1004 of the Solid Waste 

12 Disposal Act (42 U.S.C. 6903)); 

13 ‘‘(vii) renewable natural gas; 

14 ‘‘(viii) landfill gas; 

15 ‘‘(ix) qualified hydropower production 

16 (as that term is defined in section 45(c)(8) 

17 of the Internal Revenue Code of 1986); 

18 and 

19 ‘‘(x) an inherently low-emission facil20 ity. 

21 ‘‘(B) AUTHORIZATION TO EXPAND

22 TERM.—In promulgating regulations under sub23 section (q), the Secretary may expand the defi24 nition of the term ‘clean energy resource’ to in25 clude new technologies or sources that the SecVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 retary determines to have characteristics in 

2 common with other energy resources listed in 

3 this subsection. 

4 ‘‘(6) DEMAND-SIDE MANAGEMENT.—The term 

5 ‘demand-side management’ means— 

6 ‘‘(A) an electric retailer assistance of man7 agement of customer consumption of electricity 

8 of the demand for electricity through— 

9 ‘‘(i) the implementation of energy-effi10 ciency technologies; 

11 ‘‘(ii) the use of real-time or other in12 formation systems that provide relevant 

13 data to electricity consumers regarding— 

14 ‘‘(I) rate of consumption; 

15 ‘‘(II) cost per kilowatt hour dur16 ing peak and off-peak hours; or 

17 ‘‘(III) any other information that 

18 would assist electricity consumers in 

19 making informed decisions regarding 

20 the use of electricity; or 

21 ‘‘(iii) any other program approved by 

22 the Secretary that would assist in the man23 agement of customer consumption or de24 mand for electricity which can be directly 


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1 attributable to the resources invested in 

2 the approved program; 

3 ‘‘(B) management practices of an electric 

4 retailer or other measures relating to residen5 tial, commercial, industrial, institutional, or 

6 governmental customers that reduce electricity 

7 consumption by those customers or industrial 

8 by-product technologies consisting of the use of 

9 a by-product from an industrial process (includ10 ing the reuse of energy from exhaust gases or 

11 other manufacturing byproducts that are used 

12 in the direct production of electricity at the fa13 cility of a customer); 

14 ‘‘(C) electricity providers assistance in the 

15 implementation of and expanded use of distrib16 uted generation technologies, including on-site 

17 renewable energy systems and fuel cells; 

18 ‘‘(D) energy efficiency technologies, includ19 ing— 

20 ‘‘(i) generation technologies to im21 prove efficiency; and 

22 ‘‘(ii) grid technologies to reduce line 

23 losses and improve transmission efficiency; 

24 and 


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1 ‘‘(E) other demand management tech2 niques or processes whose effectiveness can be 

3 accounted for as approved by the Secretary. 

4 ‘‘(7) EXPENDITURES ON ELIGIBLE DEMAND5 SIDE MANAGEMENT PRODUCTS OR SERVICES.—The 

6 term ‘expenditures on eligible demand-side manage7 ment products or services’ means expenditures in8 curred for demand-side management measures of9 fered by a retail electric supplier pursuant to energy 

10 conservation, efficiency, and demand-side manage11 ment plans and programs that are— 

12 ‘‘(A) established under a law (including a 

13 regulation) of a State; and 

14 ‘‘(B) approved by the appropriate regu15 latory authorities of the State. 

16 ‘‘(8) INCREMENTAL COST OF ENERGY.—The 

17 term ‘incremental cost of energy’ means— 

18 ‘‘(A) the cost to the electric utility for the 

19 purchase of energy associated with the acquisi20 tion of clean energy credits or for the genera21 tion of energy to satisfy the minimum clean en22 ergy generation requirement of subsection (d), 

23 including any receipt and delivery costs in24 curred by the electric utility; and 


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1 ‘‘(B) the cost to the electric utility for ac2 quiring renewable energy credits to satisfy the 

3 minimum clean energy generation requirement 

4 of subsection (d), including any cost associated 

5 with— 

6 ‘‘(i) alternative compliance payments; 

7 ‘‘(ii) credit or certificate purchases; or 

8 ‘‘(iii) other financial compliance pay9 ments made to a State. 

10 ‘‘(9) INCREMENTAL ELECTRIC SALES OF A RE11 TAIL ELECTRIC SUPPLIER.—The term ‘incremental 

12 electric sales of a retail electric supplier’ means the 

13 difference between— 

14 ‘‘(A) the quantity of sales of a retail elec15 tric supplier to electric consumers in a given 

16 year; and 

17 ‘‘(B) the base quantity of a retail electric 

18 supplier. 

19 ‘‘(10) INHERENTLY LOW-EMISSION FACILITY.— 

20 ‘‘(A) IN GENERAL.—The term ‘inherently 

21 low-emission facility’ means— 

22 ‘‘(i) an integrated gasification com23 bine cycle generation facility or other coal24 fired or gas-fired generation technology 

25 that provides for— 


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1 ‘‘(I) the future capture and se2 questration of carbon provided that 

3 carbon capture and sequestration 

4 technology is commercially viable as 

5 determined by the Secretary; and 

6 ‘‘(II) a reduction of emissions; 

7 and 

8 ‘‘(ii) a new nuclear power facility. 

9 ‘‘(B) AUTHORIZATION TO EXPAND

10 TERM.—In promulgating regulations under sub11 section (q), the Secretary may expand the defi12 nition of the term ‘inherently low-emission facil13 ity’ to include new technologies that the Sec14 retary determines to have characteristics in 

15 common with other energy resources listed in 

16 this subsection. 

17 ‘‘(11) INDIAN LAND.—The term ‘Indian land’ 

18 means— 

19 ‘‘(A) any land located within the bound20 aries of any Indian reservation, pueblo, or 

21 rancheria; 

22 ‘‘(B) any land not located within the 

23 boundaries of any indian reservation, pueblo, or 

24 rancheria, title to which was, on the date of en25 actment of this section, held by— 


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1 ‘‘(i) the United States for the benefit 

2 of any Indian tribe or individual; or 

3 ‘‘(ii) any Indian tribe or individual 

4 subject to a restriction against alienation 

5 by the United States; 

6 ‘‘(C) any dependent Indian community; 

7 and 

8 ‘‘(D) any land conveyed to any Alaska Na9 tive corporation under the Alaska Native 

10 Claims Settlement Act (43 U.S.C. 1601 et 

11 seq.). 

12 ‘‘(12) INDIAN TRIBE.—The term ‘Indian tribe’ 

13 has the meaning given the term in section 4 of the 

14 Indian Self-Determination and Education Assistance 

15 Act (25 U.S.C. 450b). 

16 ‘‘(13) NECESSARY COSTS.—The term ‘necessary 

17 costs’ means any costs associated with— 

18 ‘‘(A) the purchase of— 

19 ‘‘(i) a clean energy credit; and 

20 ‘‘(ii) any associated energy; 

21 ‘‘(B) the generation of a clean energy cred22 it; and 

23 ‘‘(C) the firming, shaping, balancing, 

24 backup, and delivery services prudently incurred 

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1 tric system that incorporates energy from a 

2 clean energy resource. 

3 ‘‘(14) NEW NUCLEAR POWER.—The term ‘new 

4 nuclear power’ means— 

5 ‘‘(A) electric energy that is generated from 

6 a nuclear facility placed in service after Janu7 ary 1, 2012; or 

8 ‘‘(B) electric energy that is generated from 

9 an existing facility that has been uprated after 

10 January 1, 2012 and is calculated by the dif11 ference between— 

12 ‘‘(i) average output prior to the 

13 uprate; and 

14 ‘‘(ii) the average output after the 

15 uprate. 

16 ‘‘(15) RECEIPT AND DELIVERY COSTS.— 

17 ‘‘(A) IN GENERAL.—The term ‘receipt and 

18 delivery costs’ means any costs associated with 

19 the receipt of energy on the system of the elec20 tric utility and the delivery of the energy to the 

21 retail loads of the electric utility through— 

22 ‘‘(i) transmission facilities in existence 

23 on the date of enactment of this section; 

24 and 


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1 ‘‘(ii) transmission facilities newly con2 structed after the date of enactment of this 

3 section. 

4 ‘‘(B) INCLUSIONS.—The term ‘receipt and 

5 delivery costs’ includes— 

6 ‘‘(i) any transmission and distribution 

7 cost or charge; 

8 ‘‘(ii) any loss and associated ancillary 

9 service charge— 

10 ‘‘(I) assessed by any applicable 

11 transmission provider; or 

12 ‘‘(II) provided for pursuant to 

13 the Commission-accepted open access 

14 transmission tariff of the electric util15 ity; and 

16 ‘‘(iii) any firming, shaping, backup, or 

17 delivery services required by the electric 

18 utility to balance clean energy. 

19 ‘‘(16) RETAIL ELECTRIC SUPPLIER.—The term 

20 ‘retail electric supplier’ means— 

21 ‘‘(A) an individual or entity that sold not 

22 less than 500,000 megawatt hours of electric 

23 energy to electric consumers for purposes other 

24 than resale in any calendar year before January 

25 1, 2015; and 


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1 ‘‘(B) an individual or entity that first sold 

2 electric energy to electric consumers for pur3 poses other than resale after January 1, 2015. 

4 ‘‘(17) SEQUESTRATION.—The term ‘sequestra5 tion’ means the capture and storage of carbon in— 

6 ‘‘(A) biological organisms capable of the 

7 capture and storage of carbon; or 

8 ‘‘(B) geological or geophysical structures 

9 that can hold carbon and carbon molecules un10 derground for a period of at least 100 years or 

11 such other period as is determined by the Sec12 retary. 

13 ‘‘(18) STATE RENEWABLE STANDARD PRO14 GRAM.—The term ‘State renewable standard pro15 gram’ means a program that— 

16 ‘‘(A) requires the generation or purchase 

17 of electricity from renewable energy; 

18 ‘‘(B) provides for— 

19 ‘‘(i) alternative compliance payments 

20 in satisfaction of applicable State require21 ments under the program; 

22 ‘‘(ii) compliance through acquisition of 

23 certificates or credits; or 

24 ‘‘(iii) other financial compliance mech25 anisms; or 


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1 ‘‘(C) imposes a penalty in the event of a 

2 failure to meet applicable requirements. 

3 ‘‘(c) CALCULATION OF BASE QUANTITY.—Not later 

4 than 2 years after the date of enactment of this section, 

5 the Secretary shall promulgate regulations to establish— 

6 ‘‘(1) the calculation of the base quantity of elec7 tric retail suppliers that initiate sales after January 

8 1, 2010; and 

9 ‘‘(2) the manner by which adjustments shall be 

10 made for— 

11 ‘‘(A) material changes in marketing pat12 terns; and 

13 ‘‘(B) other unusual circumstances during 

14 or after the base period. 

15 ‘‘(d) CLEAN ENERGY GENERATION REQUIRE16 MENT.— 

17 ‘‘(1) REQUIREMENT.— 

18 ‘‘(A) SUBMISSION OF CLEAN ENERGY

19 CREDITS.— 

20 ‘‘(i) IN GENERAL.—Subject to clause 

21 (ii), for each calendar year beginning in 

22 calendar year 2012, each retail supplier 

23 shall submit to the Secretary, not later 

24 than April 1 of each following calendar 

25 year, clean energy credits in an amount 


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1 equal to the required annual percentage 

2 described in paragraph (2). 

3 ‘‘(ii) EXCEPTION.—A retail electric 

4 supplier shall not be required to submit 

5 clean energy credits— 

6 ‘‘(I) in a quantity greater than 

7 the incremental electric sales of a re8 tail electric supplier to electric con9 sumers in excess of the base quantity 

10 of the retail electric supplier estab11 lished under subsection (c)(1); and 

12 ‘‘(II) during the time period for 

13 which the President or the Governor 

14 of the State in which the retail elec15 tric supplier sells electricity has de16 clared a state of emergency caused by 

17 a natural or manmade disaster. 

18 ‘‘(2) PERCENTAGES.—The required annual per19 centage described in this paragraph for a calendar 

20 year shall be not less than the percentage specified 

21 in the following table for the calendar year: 

‘‘Calendar Year Minimum Annual 

Percentage 

2012–2017 ............................................................................... 5 percent

2018–2023 ............................................................................... 10 percent

2024–2029 ............................................................................... 15 percent

2030 and thereafter ................................................................. 20 percent. 

22 ‘‘(3) MEANS OF COMPLIANCE.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), in order to satisfy the requirement 

3 of paragraph (1), a retail electric supplier may 

4 submit to the Secretary clean energy credits— 

5 ‘‘(i) issued to the retail electric sup6 plier under subsections (e) and (h); 

7 ‘‘(ii) obtained by purchase or ex8 change under subsection (f); 

9 ‘‘(iii) borrowed under subsection (i); 

10 or 

11 ‘‘(iv) purchased from the Secretary 

12 under subsection (j). 

13 ‘‘(B) LIMITATIONS.— 

14 ‘‘(i) LIMITATION ON USE OF CREDITS

15 RELATING TO SEQUESTRATION OR RET16 ROFIT TECHNOLOGIES.—Not more than 10 

17 percent of the obligation of a retail electric 

18 supplier under paragraph (1) may be satis19 fied through use of credits issued under 

20 subsection (e)(7)(C). 

21 ‘‘(ii) LIMITATION ON COUNTING OF

22 CREDITS.—A clean energy credit may be 

23 counted toward compliance with paragraph 

24 (1) not more than once. 

25 ‘‘(e) ISSUANCE OF CREDITS.— 


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1 ‘‘(1) ESTABLISHMENT OF PROGRAM.—Not later 

2 than 1 year after the date of enactment of this sec3 tion, the Secretary shall establish, by regulation, a 

4 program— 

5 ‘‘(A) to issue clean energy credits; 

6 ‘‘(B) to monitor the sale or exchange of 

7 clean energy credits; and 

8 ‘‘(C) to track clean energy credits. 

9 ‘‘(2) APPLICATION FOR CREDITS.— 

10 ‘‘(A) IN GENERAL.—In accordance with 

11 the program established under paragraph (1), 

12 an individual or entity that generates electric 

13 energy through the use of a clean energy re14 source may apply to the Secretary for the 

15 issuance of clean energy credits. 

16 ‘‘(B) ENTITIES THAT GENERATE ELEC17 TRICITY OUTSIDE THE UNITED STATES.— 

18 ‘‘(i) DEMONSTRATION OF DOMESTIC

19 CONSUMPTION.—If the electricity gen20 erated by an applicant is generated outside 

21 the United States, the applicant shall dem22 onstrate to the Secretary that the elec23 tricity is sold for ultimate consumption in 

24 the United States. 


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1 ‘‘(ii) APPLICATION REQUIREMENTS.— 

2 The applicant shall submit to the Sec3 retary an application that includes— 

4 ‘‘(I) the type of clean energy re5 source used to produce the electricity; 

6 ‘‘(II) the location at which the 

7 electric energy was produced; 

8 ‘‘(III) the quantity of electricity 

9 generated by the clean energy re10 source; and 

11 ‘‘(IV) any other appropriate in12 formation, as determined by the Sec13 retary. 

14 ‘‘(3) ELIGIBILITY.— 

15 ‘‘(A) IN GENERAL.—To be eligible for a 

16 clean energy credit, a unit of electric energy 

17 generated through the use of a clean energy re18 source shall be sold or used by the generator. 

19 ‘‘(B) ENERGY PRODUCED BY CLEAN AND

20 NON-CLEAN ENERGY RESOURCES.—If a clean 

21 energy resource and a nonclean energy resource 

22 are combined to generate electric energy, the 

23 Secretary shall issue clean energy credits based 

24 on the proportion that the quantity of clean en25 ergy resources used to generate the electric enVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 ergy bears to the total quantity of energy re2 sources used to generate the electric energy. 

3 ‘‘(C) EXISTING FOSSIL-FIRED POWER FA4 CILITIES.—An existing coal-fired or gas-fired 

5 power facility that is retrofitted shall be eligible 

6 for a clean energy credit to the extent that the 

7 facility is considered an inherently low-emission 

8 facility. 

9 ‘‘(4) IDENTIFICATION OF CREDITS.—The Sec10 retary shall identify clean energy credits by type and 

11 year of generation. 

12 ‘‘(5) TREATMENT OF CERTAIN RETAIL ELEC13 TRIC SUPPLIERS.—If a generator sells electric en14 ergy generated through the use of a clean energy re15 source to a retail electric supplier under a contract 

16 subject to section 210, or pursuant to a State net 

17 metering program, the retail electric supplier shall 

18 be treated as the generator of the electric energy for 

19 the purposes of this section for the duration of the 

20 contract. 

21 ‘‘(6) ESTABLISHMENT OF A VERIFICATION PRO22 GRAM.—Not later than 1 year after the date of con23 firmation that such technology is commercially viable 

24 as determined by the Secretary, the Secretary shall 

25 establish, by regulation, a program for verifying the 


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1 reduction of carbon dioxide emissions into the at2 mosphere through— 

3 ‘‘(A) permanent geological sequestration; 

4 ‘‘(B) biosequestration; or 

5 ‘‘(C) other verifiably permanent reductions 

6 in carbon dioxide emissions from the retrofit of 

7 power plants in existence on the date of enact8 ment of this section with technology that per9 manently reduces carbon dioxide emissions— 

10 ‘‘(i) in proportion to the net power 

11 output of the power plant; or 

12 ‘‘(ii) from industrial or other sources. 

13 ‘‘(7) ISSUANCE OF CREDITS.— 

14 ‘‘(A) IN GENERAL.—Except as otherwise 

15 provided in this paragraph, not later than Jan16 uary 1, 2012, and annually thereafter, the Sec17 retary shall issue to each individual or entity 

18 that generates electric energy 1 clean energy 

19 credit for each kilowatt-hour of electric energy 

20 that the individual or entity generated through 

21 the use of clean energy resources during the 

22 preceding calendar year. 

23 ‘‘(B) CREDITS FOR SEQUESTERED CARBON

24 DIOXIDE.— 


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1 ‘‘(i) IN GENERAL.—The Secretary 

2 shall issue 1,000 credits for each ton of 

3 carbon dioxide that has been— 

4 ‘‘(I) verifiably sequestered and 

5 reduced; or 

6 ‘‘(II) verifiably sequestered 

7 through biosequestration. 

8 ‘‘(ii) VALUE AND USE OF CREDIT.—A 

9 credit issued under clause (i)— 

10 ‘‘(I) shall have the same value as 

11 a credit issued under any other sub12 paragraph of this paragraph; and 

13 ‘‘(II) may be used to comply with 

14 the minimum generation requirements 

15 under paragraphs (1) and (2) or sub16 section (d), except as provided in sub17 section (d)(3)(B)(i). 

18 ‘‘(iii) PROJECTS LOCATED OUTSIDE

19 THE UNITED STATES.—A biosequestration 

20 project located outside the United States 

21 (other than on Indian land) shall not be el22 igible to receive credits under clause (i). 

23 ‘‘(C) CREDITS FOR FACILITIES LOCATED

24 ON INDIAN LAND.— 


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1 ‘‘(i) IN GENERAL.—The Secretary 

2 shall issue 2 clean energy credits for each 

3 kilowatt-hour of electric energy generated 

4 and supplied to the grid during the pre5 ceding calendar year through the use of 

6 clean energy at a facility located on Indian 

7 land. 

8 ‘‘(ii) LOCATION REQUIREMENT.—A 

9 facility shall receive 2 energy credits for 

10 each kilowatt-hour of electric energy gen11 erated under subparagraph (A), if the elec12 tric energy was produced by biomass 

13 grown on Indian land. 

14 ‘‘(D) CREDITS FOR ENTITIES SUBJECT TO

15 A STATE RENEWABLE STANDARD PROGRAM.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall issue to a retail electric supplier that 

18 is subject to a State renewable standard 

19 program clean energy credits in a quantity 

20 that corresponds to the kilowatt-hour obli21 gation— 

22 ‘‘(I) represented by the State al23 ternative compliance payment, credit 

24 or certificate payment, or other finan25 cial compliance payment (or a penalty 


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1 payment as though that payment had 

2 been made to the Secretary under 

3 subsection (k)); or 

4 ‘‘(II) satisfied under the State re5 newable standard program through 

6 the use of an eligible technology or eli7 gible resource, as defined by the 

8 State. 

9 ‘‘(ii) USE OF CREDITS.—A clean en10 ergy credit issued by the Secretary to a re11 tail electric supplier that is subject to a 

12 State renewable standard program under 

13 clause (i) may be— 

14 ‘‘(I) applied against the required 

15 annual percentage of the retail electric 

16 supplier under subsection (d)(2); or 

17 ‘‘(II) transferred for use only by 

18 an associate company of the retail 

19 electric supplier. 

20 ‘‘(E) CREDITS FOR ELIGIBLE DEMAND21 SIDE MANAGEMENT PRODUCTS OR SERVICES.— 

22 ‘‘(i) IN GENERAL.—The Secretary 

23 shall issue to a retail electric supplier that 

24 provides eligible demand-side management 

25 products or services clean energy credits in 


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1 a quantity that corresponds to the amount 

2 of expenditures of eligible demand-side 

3 management products or services as 

4 though those expenditures had been pay5 ments made to the Secretary under sub6 section (k). 

7 ‘‘(ii) USE OF CREDITS.—A clean en8 ergy credit issued by the Secretary under 

9 clause (i) may be— 

10 ‘‘(I) applied against the required 

11 annual percentage of the retail electric 

12 supplier under subsection (d)(2); or 

13 ‘‘(II) transferred for use only by 

14 an associate company of the retail 

15 electric supplier. 

16 ‘‘(F) CREDITS FOR NEW NUCLEAR POWER

17 FACILITIES.—The Secretary shall issue to a 

18 new nuclear power facility that qualifies as an 

19 inherently low-emission facility 1 credit for each 

20 kilowatt-hour of production generated by the 

21 new nuclear power facility. 

22 ‘‘(G) CREDITS FOR NEW CLEAN COAL

23 TECHNOLOGY.—The Secretary shall issue to a 

24 new clean-coal technology power facility that 


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1 qualifies as an inherently low-emission facil2 ity— 

3 ‘‘(i) 1 credit for each kilowatt-hour of 

4 production generated by the new clean-coal 

5 technology power facility; and 

6 ‘‘(ii) credits issued in accordance with 

7 subparagraph (B). 

8 ‘‘(f) TRADING CREDITS.— 

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

10 an individual or entity that has earned credits under 

11 subsection (e)(7) may sell or transfer to, or ex12 change credits with, any other individual or entity. 

13 ‘‘(2) EXCEPTION.—Clean energy credits issued 

14 by the Secretary pursuant to subparagraphs (D) and 

15 (E) of subsection (e)(7) may only be sold, trans16 ferred to, or exchanged with, any individual or entity 

17 within the State in which the credits are issued. 

18 ‘‘(g) DURATION OF VALIDITY.—A clean energy credit 

19 issued by the Secretary under subsection (e)(7) for any 

20 year that is not used to satisfy the minimum annual per21 centage requirement of subsection (d)(1) for that calendar 

22 year may be carried forward for use in any subsequent 

23 calendar year. 

24 ‘‘(h) EARLY ACTION.— 


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

2 retail electric supplier generating electric energy 

3 through the use of a clean energy resource during 

4 the period beginning January 1, 2008, and ending 

5 on December 31, 2012, shall be eligible to receive 

6 credits from the Secretary. 

7 ‘‘(2) EXCEPTION FOR EXISTING INHERENTLY

8 LOW-EMISSION FACILITIES.—An inherently low-emis9 sion facility in existence on the date of enactment of 

10 this section shall not be eligible to receive a credit 

11 from the Secretary under paragraph (1). 

12 ‘‘(3) ISSUANCE OF CLEAN ENERGY CREDITS.— 

13 The Secretary shall issue to an eligible electric sup14 plier under paragraph (1) clean energy credits on 

15 the same basis as if the generation of the electricity 

16 by the eligible electric supplier occurred after De17 cember 31, 2012. 

18 ‘‘(4) VALUE AND USE OF CREDITS.—A credit 

19 issued by the Secretary under paragraph (3)— 

20 ‘‘(A) shall have the same value as any 

21 credit issued under this section; and 

22 ‘‘(B) may be used for any purpose author23 ized under this section. 

24 ‘‘(i) CLEAN ENERGY CREDIT BORROWING.—On any 

25 date before December 31, 2012, and each calendar year 


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1 thereafter, a retail electric supplier that has reason to be2 lieve that the supplier will not have sufficient clean energy 

3 credits to comply with subsection (d)(1) may— 

4 ‘‘(1) submit to the Secretary a plan dem5 onstrating that the retail electric supplier will earn 

6 sufficient credits within the subsequent 3 calendar 

7 years (or for a longer period, if the retail electric 

8 supplier intends to obtain credits for power gen9 erated by a new nuclear power facility) that would 

10 enable the retail electric supplier to meet the re11 quirements of subsection (d)(1) for each applicable 

12 calendar year; and 

13 ‘‘(2) on the approval of the plan by the Sec14 retary, apply clean energy credits that the retail 

15 electric supplier demonstrates through the plan sub16 mitted under paragraph (1) will be earned within 

17 the subsequent 3 calendar years (or for a longer pe18 riod, if the retail electric supplier intends to obtain 

19 credits for power generated by a new nuclear power 

20 facility) to meet the requirements of subsection 

21 (d)(1) for each applicable calendar year. 

22 ‘‘(j) CREDIT COST GAP.—The Secretary shall offer 

23 clean energy credits for sale at a price that does not ex24 ceed— 


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1 ‘‘(1) 2.5 cents per kilowatt-hour for each appli2 cable compliance period that occurs during each of 

3 calendar years 2012 through 2017; 

4 ‘‘(2) 3.0 cents per kilowatt-hour for each appli5 cable compliance period that occurs during each of 

6 calendar years 2018 through 2023; 

7 ‘‘(3) 3.5 cents per kilowatt-hour for each appli8 cable compliance period that occurs during each of 

9 calendar years 2024 through 2029; and 

10 ‘‘(4) 5.0 cents per kilowatt-hour for each appli11 cable compliance period that occurs during calendar 

12 year 2030 or each calendar year thereafter. 

13 ‘‘(k) ENFORCEMENT.— 

14 ‘‘(1) IN GENERAL.—The Secretary may assess 

15 a civil penalty on a retail electric supplier that does 

16 not comply with subsection (d)(1), unless the retail 

17 electric supplier was unable to comply with sub18 section (d)(1) for reasons beyond the reasonable con19 trol of the retail electric supplier, including— 

20 ‘‘(A) weather-related damage; 

21 ‘‘(B) mechanical failure; 

22 ‘‘(C) lack of transmission capacity or avail23 ability; 

24 ‘‘(D) strikes; 

25 ‘‘(E) lockouts; or 


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1 ‘‘(F) actions of a governmental authority, 

2 including delays in permitting of new clean en3 ergy facilities or transmission lines. 

4 ‘‘(2) MANDATORY CIVIL PENALTY.— 

5 ‘‘(A) IMPOSITION OF PENALTY.— 

6 ‘‘(i) IN GENERAL.—Except as pro7 vided in clause (ii), any retail electric sup8 plier that fails to submit the required num9 ber of clean energy credits under sub10 section (d)(1) shall be subject to a civil 

11 penalty. 

12 ‘‘(ii) EXCEPTION.—Any retail electric 

13 supplier that fails to submit the required 

14 number of clean energy credits under sub15 section (d)(1)(A)(i) but fulfills the require16 ments for an exemption under subsection 

17 (d)(1)(A)(ii) shall not be subject to a civil 

18 penalty. 

19 ‘‘(B) AMOUNT OF PENALTY.—The amount 

20 of the civil penalty shall be not more than the 

21 lesser of— 

22 ‘‘(i) 3.5 cents for each kilowatt-hour 

23 produced by the retail electric supplier that 

24 was not covered by a clean energy credit; 

25 and 


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1 ‘‘(ii) for each clean energy credit not 

2 submitted for a calendar year, an amount 

3 equal to 200 percent of the average market 

4 value of the clean energy credit during the 

5 calendar year. 

6 ‘‘(l) INFORMATION COLLECTION.—The Secretary 

7 may collect any information considered by the Secretary 

8 to be necessary to verify and audit— 

9 ‘‘(1) the annual electric energy generation and 

10 clean energy generation of any individual or entity 

11 applying for a clean energy credit under this section; 

12 ‘‘(2) the validity of clean energy credits sub13 mitted to the Secretary by a retail electric supplier; 

14 and 

15 ‘‘(3) the quantity of electricity sales of all retail 

16 electric suppliers. 

17 ‘‘(m) ENVIRONMENTAL SAVINGS CLAUSE.— 

18 ‘‘(1) QUALIFIED HYDROPOWER PRODUCTION.— 

19 Qualified hydropower production shall be subject to 

20 all applicable— 

21 ‘‘(A) environmental laws; and 

22 ‘‘(B) licensing and regulatory require23 ments. 

24 ‘‘(2) CARBON SEQUESTRATION PROJECTS.—A 

25 carbon sequestration project that uses geological or 


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1 geophysical structures for the permanent storage of 

2 carbon dioxide shall not be subject to liability under 

3 subtitles C or D of the Solid Waste Disposal Act (42 

4 U.S.C. 6921 et seq.) or the Comprehensive Environ5 mental Response, Compensation, and Liability Act 

6 of 1980 (42 U.S.C. 9601 et seq.). 

7 ‘‘(n) EXISTING PROGRAMS.— 

8 ‘‘(1) COORDINATION.—In carrying out this sec9 tion, the Secretary shall incorporate common ele10 ments of clean energy programs in existence on the 

11 date of enactment of this section (including State 

12 programs) to ensure administrative efficiency, mar13 ket liquidity, and effective enforcement. 

14 ‘‘(2) COOPERATION BETWEEN SECRETARY AND

15 STATES.—In carrying out this section, the Secretary 

16 shall work with the States— 

17 ‘‘(A) to minimize administrative burdens 

18 and costs; and 

19 ‘‘(B) to avoid duplicating compliance 

20 charges to retail electric suppliers. 

21 ‘‘(o) RECOVERY OF COSTS.— 

22 ‘‘(1) IN GENERAL.—Any necessary costs in23 curred by a retail electric supplier to comply with 

24 this section shall be recoverable in accordance with 

25 this subsection. 


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1 ‘‘(2) RIGHT OF RECOVERY BY RETAIL ELECTRIC

2 SUPPLIER.—Notwithstanding any other law (includ3 ing a regulation), administrative order, or agreement 

4 between the electric utility and the Commission or a 

5 State regulatory authority, a retail electric supplier 

6 that has completed a sale of electric energy that is 

7 subject to any form of rate regulation (including any 

8 utility that uses rates that are regulated by the 

9 Commission or any State-regulated electric utility) 

10 shall not be denied the opportunity to recover the 

11 full amount of the prudently incurred incremental 

12 cost of energy obtained to comply with the require13 ments of subsection (d)(1). 

14 ‘‘(p) CLEAN ENERGY TECHNOLOGY FUND.— 

15 ‘‘(1) ESTABLISHMENT.—There is established in 

16 the Treasury of the United States a revolving fund, 

17 to be known as the ‘Clean Energy Technology Trust 

18 Fund’ (referred to in this section as the ‘Fund’), 

19 consisting of such amounts as the Secretary shall 

20 deposit into the Fund from funds received by the 

21 Secretary under subsections (j) and (k)(2)(B). 

22 ‘‘(2) MAXIMUM CUMULATIVE AMOUNT.—Of any 

23 funds received by the Secretary under subsections (j) 

24 and (k)(2)(B), the Secretary shall deposit— 


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1 ‘‘(A) not more than $25,000,000,000 into 

2 the Fund; and 

3 ‘‘(B) any amounts in excess of 

4 $25,000,000,000 into the general fund of the 

5 Treasury. 

6 ‘‘(3) EXPENDITURES FROM FUND.—Beginning 

7 in fiscal year 2014, on the request of the Secretary, 

8 of the amount any funds deposited into the Fund for 

9 the previous fiscal year, the Secretary of the Treas10 ury shall transfer— 

11 ‘‘(A) 50 percent of the funds to the sec12 retary to carry out research and demonstration 

13 projects to promote clean energy resources, in14 herently low-emission facilities, and demand15 side management, of which the secretary shall 

16 award— 

17 ‘‘(i) 50 percent of the funds shall be 

18 used to provide research and development 

19 grants to research centers and institutions 

20 of higher education in States that have 

21 paid into the Fund an amount that is 

22 greater than the average amount paid into 

23 the Fund by all States; and 

24 ‘‘(ii) 50 percent of the funds shall be 

25 used to provide research and development 


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1 grants to research centers and institutions 

2 of higher education on a competitive basis; 

3 ‘‘(B) 45 percent of the funds shall be 

4 transferred to the Secretary to assist in off-set5 ting financial burdens incurred by the imple6 mentation of the Clean, Reliable, Efficient and 

7 Secure Energy Act; and 

8 ‘‘(C) 5 percent of the funds shall be trans9 ferred to the Secretary to assist in off-setting 

10 financial burdens incurred by the implementa11 tion of this section through the low-income 

12 home energy assistance program established 

13 under the Low-Income Home Energy Assist14 ance Act of 1981 (42 U.S.C. 8621 et seq.). 

15 ‘‘(4) TRANSFERS OF AMOUNTS.— 

16 ‘‘(A) BUDGET ACT ALLOCATIONS.—The 

17 Effective for the fiscal year 2014 and each fis18 cal year thereafter, funds appropriate from the 

19 Fund established under paragraph (1) of this 

20 section shall not be subject to— 

21 ‘‘(i) the allocations for discretionary 

22 spending under section 302(a) of the Con23 gressional Budget Act of 1974 (2 U.S.C. 

24 633(a)); or 


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1 ‘‘(ii) the suballocations of appropria2 tions committees under section 302(b) of 

3 that Act. 

4 ‘‘(B) ADJUSTMENTS.—Proper adjustment 

5 shall be made in amounts subsequently trans6 ferred to the extent prior estimates were in ex7 cess of or less than the amounts required to be 

8 transferred. 

9 ‘‘(q) PROGRAM REVIEW.— 

10 ‘‘(1) COMPREHENSIVE STUDY.—Not later than 

11 5 years after the date of enactment of this section, 

12 and every 5 years thereafter, the Secretary shall 

13 carry out a comprehensive study to evaluate the ef14 fects of the implementation of this section. 

15 ‘‘(2) REPORT.—Not later than January 1, 

16 2017, the Secretary shall submit to Congress a re17 port that includes— 

18 ‘‘(A) the results of the comprehensive 

19 study carried out under paragraph (1); 

20 ‘‘(B) recommendations for any modifica21 tion or improvement resulting from that study; 

22 and 

23 ‘‘(C) an evaluation of— 

24 ‘‘(i) the effectiveness of this section 

25 in— 


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1 ‘‘(I) increasing the market pene2 tration of eligible clean energy tech3 nologies; and 

4 ‘‘(II) lowering the cost of the eli5 gible clean energy technologies; 

6 ‘‘(ii) any opportunities for the devel7 opment and deployment of additional clean 

8 energy technologies that have been created 

9 after the date of enactment of this section; 

10 ‘‘(iii) the impact of this section on the 

11 regional diversity and reliability of supply 

12 sources (including the power quality bene13 fits of distributed generation); 

14 ‘‘(iv) the regional resource develop15 ment carried out under this section relative 

16 to the potential of each region to develop 

17 and use clean energy technologies, includ18 ing any reasons for any underinvestment 

19 in clean energy resources; 

20 ‘‘(v) the costs and benefits of the 

21 clean energy standard established under 

22 this section to the economies of each state 

23 and the united states, including— 

24 ‘‘(I) retail power costs; 


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1 ‘‘(II) economic development bene2 fits of investment; 

3 ‘‘(III) avoided costs relating to 

4 environmental and congestion mitiga5 tion investments that would otherwise 

6 have been incurred; 

7 ‘‘(IV) the impact on the demand 

8 and price of natural gas; and 

9 ‘‘(V) the effectiveness of green 

10 marketing programs at reducing the 

11 cost of clean energy resources; 

12 ‘‘(vi) the efficiency of the coordination 

13 between the Secretary and States in the 

14 implementation of this section, in par15 ticular, with regard to those States that 

16 have additional portfolio standard require17 ments in place; and 

18 ‘‘(vii) the ability of the State to apply 

19 for a waiver of the requirements of this 

20 section under subsection (s). 

21 ‘‘(r) IMPLEMENTATION OF STUDY.—Not later than 

22 180 days after the date of completion of the study carried 

23 out by the Secretary under subsection (q)(1), the Sec24 retary shall, by regulation, implement each modification 


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1 included in the study that, as determined by the Secretary, 

2 is necessary— 

3 ‘‘(1) to improve the efficiency of activities car4 ried out under this section; and 

5 ‘‘(2) to maximize the use of clean energy under 

6 this section. 

7 ‘‘(s) WAIVER OF REQUIREMENTS.— 

8 ‘‘(1) APPLICATION.—Not later than 1 year 

9 after the date of enactment of this section, any State 

10 that has reason to believe that the cost of complying 

11 with this section shall cause undue economic hard12 ship to the ultimate purchasers of electricity in the 

13 State (including manufacturing and industrial users 

14 of electricity in the State) may apply to the Sec15 retary for a waiver from the requirement to comply 

16 with this section for retail electric suppliers selling 

17 electricity to end-use customers located in the State. 

18 ‘‘(2) REQUIREMENTS FOR WAIVER.—The Sec19 retary shall grant the application of the State under 

20 paragraph (1) if the Secretary determines that com21 plying with this section is likely to cause undue eco22 nomic hardship to the ultimate purchasers of elec23 tricity in the State. 


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1 ‘‘(3) DETERMINATION OF THE SECRETARY.—In 

2 making a determination to grant a waiver under 

3 paragraph (2), the Secretary shall consider— 

4 ‘‘(A) the adequacy of commercially avail5 able clean energy resources located within the 

6 State; 

7 ‘‘(B) the potential clean energy resources 

8 available within the region that includes the 

9 State; 

10 ‘‘(C) the cost of developing those resources 

11 at current and reasonably expected levels of 

12 technology (including the cost and availability 

13 of existing and needed transmission facilities to 

14 transmit electric energy from the location of the 

15 clean energy resources to the consumers of elec16 tric energy within the State); and 

17 ‘‘(D) the economic and associated impacts 

18 of those costs on the ultimate purchasers lo19 cated within the State. 

20 ‘‘(4) LIMITATIONS.— 

21 ‘‘(A) IN GENERAL.—If the Secretary deter22 mines to grant a waiver under paragraph (2), 

23 the waiver may be granted for a period of not 

24 more than 3 years. 

25 ‘‘(B) ADDITIONAL WAIVERS.— 


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1 ‘‘(i) FACTORS.—If a State that has 

2 been granted a waiver under subparagraph 

3 (A) submits an application for an addi4 tional waiver, the Secretary shall make a 

5 determination on the application on the 

6 basis of the factors described in paragraph 

7 (3). 

8 ‘‘(ii) PERIOD.—If the Secretary 

9 grants a waiver to a State that has been 

10 previously granted a waiver under subpara11 graph (A), the waiver may be granted for 

12 a period of 2 additional years. 

13 ‘‘(iii) NUMBER OF ADDITIONAL WAIV14 ERS.—No State that has applied for a 

15 waiver under clause (i) may apply for any 

16 additional waivers.’’. 

17 SEC. 104. NUCLEAR FUEL MANAGEMENT AND DISPOSAL. 

18 (a) DEFINITIONS.—In this section: 

19 (1) DISPOSAL.—The term ‘‘disposal’’ has the 

20 meaning given the term in section 2 of the Nuclear 

21 Waste Policy Act of 1982 (42 U.S.C. 10101). 

22 (2) HIGH-LEVEL RADIOACTIVE WASTE.—The 

23 term ‘‘high-level radioactive waste’’ has the meaning 

24 given the term in section 2 of the Nuclear Waste 

25 Policy Act of 1982 (42 U.S.C. 10101). 


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1 (3) PROJECT.—The term ‘‘Project’’ means the 

2 Yucca Mountain Project. 

3 (4) REPOSITORY.—The term ‘‘repository’’ has 

4 the meaning given the term in section 2 of the Nu5 clear Waste Policy Act of 1982 (42 U.S.C. 10101). 

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

7 the Secretary of Energy. 

8 (6) SPENT NUCLEAR FUEL.—The term ‘‘spent 

9 nuclear fuel’’ has the meaning given the term in sec10 tion 2 of the Nuclear Waste Policy Act of 1982 (42 

11 U.S.C. 10101). 

12 (7) YUCCA MOUNTAIN SITE.—The term ‘‘Yucca 

13 Mountain site’’ has the meaning given the term in 

14 section 2 of the Nuclear Waste Policy Act of 1982 

15 (42 U.S.C. 10101). 

16 (b) WITHDRAWAL OF LAND.— 

17 (1) LAND WITHDRAWAL; JURISDICTION; RES18 ERVATION; ACQUISITION.— 

19 (A) LAND WITHDRAWAL.—Subject to valid 

20 existing rights, and except as otherwise pro21 vided in this section, the land described in para22 graph (2) is withdrawn permanently from any 

23 form of entry, appropriation, or disposal under 

24 the public land laws, including, without limita25 tion— 


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1 (i) the mineral leasing laws; 

2 (ii) the geothermal leasing laws; 

3 (iii) materials sales laws; and 

4 (iv) the mining laws. 

5 (B) JURISDICTION.—As of the date of en6 actment of this Act, any land described in para7 graph (2) that is under the jurisdiction of the 

8 Secretary of the Air Force or the Secretary of 

9 the Interior shall be— 

10 (i) transferred to the Secretary; and 

11 (ii) under the jurisdiction of the Sec12 retary. 

13 (C) RESERVATION.—The land described in 

14 paragraph (2) is reserved for use by the Sec15 retary for activities associated with the disposal 

16 of high-level radioactive waste and spent nu17 clear fuel under the Nuclear Waste Policy Act 

18 of 1982 (42 U.S.C. 10101 et seq.), including— 

19 (i) development; 

20 (ii) preconstruction testing and per21 formance confirmation; 

22 (iii) licensing; 

23 (iv) construction; 

24 (v) management and operation; 

25 (vi) monitoring; 


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1 (vii) closure and post-closure; and 

2 (viii) other such activities associated 

3 with the disposal of high-level radioactive 

4 waste and spent nuclear fuel under the 

5 Nuclear Waste Policy Act of 1982 (42 

6 U.S.C. 10101 et seq.). 

7 (2) LAND DESCRIPTION.— 

8 (A) BOUNDARIES.—The land referred to in 

9 paragraph (1) is the approximately 147,000 

10 acres of land located in Nye County, Nevada, as 

11 generally depicted on the map relating to the 

12 Project, numbered YMP–03–024.2, entitled 

13 ‘‘Proposed Land Withdrawal’’, and dated July 

14 21, 2005. 

15 (B) LEGAL DESCRIPTION AND MAP.— 

16 (i) IN GENERAL.—As soon as prac17 ticable after the date of enactment of this 

18 Act, the Secretary of the Interior shall— 

19 (I) publish in the Federal Reg20 ister a notice containing a legal de21 scription of the land described in this 

22 paragraph; and 

23 (II) provide to Congress, the 

24 Governor of the State of Nevada, and 

25 the Archivist of the United States— 


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1 (aa) a copy of the map re2 ferred to in subparagraph (A); 

3 and 

4 (bb) the legal description of 

5 the land. 

6 (ii) TREATMENT.— 

7 (I) IN GENERAL.—The map and 

8 legal description referred to in clause 

9 (i) shall have the same force and ef10 fect as if the map and legal descrip11 tion were included in this section. 

12 (II) TECHNICAL CORRECTIONS.— 

13 The Secretary of the Interior may cor14 rect any clerical or typographical error 

15 in the map and legal description re16 ferred to in clause (i). 

17 (3) REVOCATIONS.— 

18 (A) PUBLIC LAND ORDER.—Public Land 

19 Order 6802, dated September 25, 1990 (as ex20 tended by Public Land Order 7534), and any 

21 condition or memorandum of understanding ac22 companying the land order (as so extended), is 

23 revoked. 

24 (B) RIGHT OF WAY.—The rights-of-way 

25 reservations relating to the Project, numbered 


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1 N–48602 and N–47748 and dated January 5, 

2 2001, are revoked. 

3 (4) MANAGEMENT OF WITHDRAWN LAND.— 

4 (A) IN GENERAL.—The Secretary, in con5 sultation with the Secretary of the Air Force 

6 and the Secretary of the Interior, as appro7 priate, shall manage the land withdrawn under 

8 paragraph (1)(A) in accordance with— 

9 (i) the Federal Land Policy and Man10 agement Act of 1976 (43 U.S.C. 1701 et 

11 seq.); 

12 (ii) this Act; and 

13 (iii) other applicable laws. 

14 (B) MANAGEMENT PLAN.— 

15 (i) DEVELOPMENT.—Not later than 3 

16 years after the date of enactment of this 

17 Act, the Secretary, in consultation with the 

18 Secretary of the Air Force and the Sec19 retary of the Interior, as appropriate, shall 

20 develop and submit to Congress and the 

21 State of Nevada a management plan for 

22 the use of the land withdrawn under sub23 section (b)(1)(A). 

24 (ii) PRIORITY.—Subject to clauses 

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1 drawn under paragraph (1)(A) for an ac2 tivity not relating to the Project shall be 

3 subject to such conditions and restrictions 

4 as the Secretary considers to be appro5 priate to facilitate activities relating to the 

6 Project. 

7 (iii) AIR FORCE USE.—The manage8 ment plan may provide for the continued 

9 use by the Department of the Air Force of 

10 the portion of the land withdrawn under 

11 paragraph (1)(A) located within the Nellis 

12 Air Force base test and training range 

13 under such terms and conditions as may be 

14 agreed to by the Secretary and the Sec15 retary of the Air Force. 

16 (iv) NEVADA TEST SITE USE.—The 

17 management plan may provide for the con18 tinued use by the National Nuclear Secu19 rity Administration of the portion of the 

20 land withdrawn under subsection (b)(1)(A) 

21 located within the Nevada test site of the 

22 Administration under such conditions as 

23 the Secretary considers to be necessary to 

24 minimize any effect on activities relating to 


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1 the Project or other activities of the Ad2 ministration. 

3 (v) OTHER USES.— 

4 (I) IN GENERAL.—The manage5 ment plan shall include provisions— 

6 (aa) relating to the mainte7 nance of wildlife habitat on the 

8 land withdrawn under paragraph 

9 (1)(A); and 

10 (bb) under which the Sec11 retary may permit any use not 

12 relating to the Project, as the 

13 Secretary considers to be appro14 priate, in accordance with the re15 quirements under subclause (II). 

16 (II) REQUIREMENTS.— 

17 (aa) GRAZING.—The Sec18 retary may permit any grazing 

19 use to continue on the land with20 drawn under paragraph (1)(A) if 

21 the grazing use was established 

22 before the date of enactment of 

23 this Act, subject to such regula24 tions, policies, and practices as 

25 the Secretary, in consultation 


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1 with the Secretary of the Inte2 rior, determines to be appro3 priate, and in accordance with 

4 applicable grazing laws and poli5 cies, including— 

6 (AA) the Act of June 

7 28, 1934 (commonly known 

8 as the ‘‘Taylor Grazing 

9 Act’’) (43 U.S.C. 315 et 

10 seq.); 

11 (BB) title IV of the 

12 Federal Land Policy Man13 agement Act of 1976 (43 

14 U.S.C. 1751 et seq.); and 

15 (CC) the Public Range16 lands Improvement Act of 

17 1978 (43 U.S.C. 1901 et 

18 seq.). 

19 (bb) HUNTING AND TRAP20 PING.—The Secretary may per21 mit any hunting or trapping use 

22 to continue on the land with23 drawn under paragraph (1)(A) if 

24 the hunting or trapping use was 

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1 actment of this Act, at such time 

2 and in such zones as the Sec3 retary, in consultation with the 

4 Secretary of the Interior and the 

5 State of Nevada, may establish, 

6 taking into consideration public 

7 safety, national security, adminis8 tration, and public use and enjoy9 ment of the land. 

10 (vi) PUBLIC ACCESS.— 

11 (I) IN GENERAL.—The manage12 ment plan may provide for limited 

13 public access to the portion of the 

14 land withdrawn under paragraph 

15 (1)(A) that was under the control of 

16 the Bureau of Land Management on 

17 the day before the date of enactment 

18 of this Act. 

19 (II) SPECIFIC USES.—The man20 agement plan may permit public uses 

21 of the land relating to the Nye County 

22 Early Warning Drilling Program, util23 ity corridors, and other uses the Sec24 retary, in consultation with the Sec25 retary of the Interior, considers to be 


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1 consistent with the purposes of the 

2 withdrawal under paragraph (1)(A). 

3 (C) MINING.— 

4 (i) IN GENERAL.—Surface and sub5 surface mining and oil and gas production, 

6 including slant drilling from outside the 

7 boundaries of the land withdrawn under 

8 paragraph (1)(A), shall be prohibited at 

9 any time on or under the land. 

10 (ii) EVALUATION OF CLAIMS.—The 

11 Secretary of the Interior shall evaluate and 

12 adjudicate the validity of any mining claim 

13 relating to any portion of the land with14 drawn under paragraph (1)(A) that was 

15 under the control of the Bureau of Land 

16 Management on the day before the date of 

17 enactment of this Act. 

18 (iii) COMPENSATION.—The Secretary 

19 shall provide just compensation for the ac20 quisition of any valid property right relat21 ing to mining pursuant to the withdrawal 

22 under paragraph (1)(A). 

23 (D) CLOSURES.—If the Secretary, in con24 sultation with the Secretary of the Air Force 

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1 priate, determines that the health and safety of 

2 the public or the national defense and security 

3 require the closure of a road, trail, or other por4 tion of the land withdrawn under paragraph 

5 (1)(A) (including the airspace above the land), 

6 the Secretary— 

7 (i) may close the road, trail, or por8 tion of land (including airspace); and 

9 (ii) shall provide to the public a notice 

10 of the closure. 

11 (E) IMPLEMENTATION.—The Secretary 

12 and the Secretary of the Air Force or the Sec13 retary of the Interior, as appropriate, shall im14 plement the management plan developed under 

15 subparagraph (B) under such terms and condi16 tions as may be agreed to by the Secretaries. 

17 (c) RECEIPT AND STORAGE FACILITIES.—Section 

18 114(b) of the Nuclear Waste Policy Act of 1982 (42 

19 U.S.C. 10134(b)) is amended— 

20 (1) by striking ‘‘If the President’’ and inserting 

21 the following: 

22 ‘‘(1) IN GENERAL.—If the President’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(2) APPLICATION FOR RECEIPT AND STORAGE

25 FACILITIES.— 


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1 ‘‘(A) IN GENERAL.—In conjunction with 

2 the submission of an application for a construc3 tion authorization under this subsection, the 

4 Secretary shall apply to the Commission for a 

5 license in accordance with part 72 of title 10, 

6 Code of Federal Regulations (or a successor 

7 regulation), to construct and operate facilities 

8 to receive and store spent nuclear fuel and 

9 high-level radioactive waste at the Yucca Moun10 tain site. 

11 ‘‘(B) DEADLINE FOR FINAL DECISION BY

12 COMMISSION.—The Commission shall issue a 

13 final decision approving or disapproving the 

14 issuance of the license not later than 18 months 

15 after the date of submission of the application 

16 to the Commission.’’. 

17 (d) REPEAL OF CAPACITY LIMITATION.—Section 

18 114(d) of the Nuclear Waste Policy Act of 1982 (42 

19 U.S.C. 10134(d)) is amended by striking the second and 

20 third sentences. 

21 (e) INFRASTRUCTURE ACTIVITIES.—Section 114 of 

22 the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10134) 

23 is amended by adding at the end the following: 

24 ‘‘(g) INFRASTRUCTURE ACTIVITIES.— 


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1 ‘‘(1) CONSTRUCTION OF CONNECTED FACILI2 TIES.—At any time after the completion by the Sec3 retary of a final environmental impact statement 

4 that evaluates the activities to be performed under 

5 this subsection, the Secretary may commence the 

6 following activities in connection with any activity or 

7 facility licensed or to be licensed by the Commission 

8 at the Yucca Mountain site: 

9 ‘‘(A) Preparation of the site for construc10 tion of the facility (including such activities as 

11 clearing, grading, and construction of tem12 porary access roads and borrow areas). 

13 ‘‘(B) Installation of temporary construc14 tion support facilities (including such items as 

15 warehouse and shop facilities, utilities, concrete 

16 mixing plants, docking and unloading facilities, 

17 and construction support buildings). 

18 ‘‘(C) Excavation for facility structures. 

19 ‘‘(D) Construction of service facilities (in20 cluding such facilities as roadways, paving, rail21 road spurs, fencing, exterior utility and lighting 

22 systems, transmission lines, and sanitary sewer23 age treatment facilities). 

24 ‘‘(E) Construction of structures, systems, 

25 and components that do not prevent or mitigate 


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1 the consequences of possible accidents that 

2 could cause undue risk to the health and safety 

3 of the public. 

4 ‘‘(F) Installation of structural foundations 

5 (including any necessary subsurface prepara6 tion) for structures, systems, and components 

7 that prevent or mitigate the consequences of 

8 possible accidents that could cause undue risk 

9 to the health and safety of the public. 

10 ‘‘(2) AUTHORIZATION TO RECEIVE AND

11 STORE.— 

12 ‘‘(A) DEFINITIONS.—In this paragraph: 

13 ‘‘(i) DEFENSE WASTE.—The term ‘de14 fense waste’ means high-level radioactive 

15 waste, and spent nuclear fuel, that results 

16 from an atomic energy defense activity. 

17 ‘‘(ii) LEGACY SPENT NUCLEAR

18 FUEL.—The term ‘legacy spent nuclear 

19 fuel’ means spent nuclear fuel— 

20 ‘‘(I) that is subject to a contract 

21 entered into pursuant to section 302; 

22 and 

23 ‘‘(II) for which the Secretary de24 termines that there is not at the time 

25 of the determination, and will not be 


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1 within a reasonable time after the de2 termination, sufficient domestic capac3 ity available to recycle the spent nu4 clear fuel. 

5 ‘‘(B) AUTHORIZATION FOR DEFENSE

6 WASTE.—At any time after the issuance of a li7 cense for receipt and storage facilities under 

8 subsection (b)(2), the Secretary may transport 

9 defense waste to receipt and storage facilities at 

10 the Yucca Mountain site. 

11 ‘‘(C) AUTHORIZATION FOR LEGACY SPENT

12 NUCLEAR FUEL.—At any time after the 

13 issuance of a construction authorization under 

14 subsection (d) and the issuance of a license for 

15 receipt and storage facilities under subsection 

16 (b)(2), the Secretary may receive and store leg17 acy spent nuclear fuel and high-level radioactive 

18 waste at the Yucca Mountain site.’’. 

19 (f) RAIL LINE.— 

20 (1) CONSTRUCTION OF RAIL LINE.—The Sec21 retary shall acquire rights-of-way within the corridor 

22 designated in paragraph (2) in accordance with this 

23 subsection, and shall construct and operate, or cause 

24 to be constructed and operated, a railroad and such 

25 facilities as are required to transport spent nuclear 


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1 fuel and high-level radioactive waste from existing 

2 rail systems to the site of surface facilities within 

3 the geologic repository operations area for the re4 ceipt, handling, packaging, and storage of spent nu5 clear fuel and high-level radioactive waste prior to 

6 emplacement. 

7 (2) ACQUISITION AND WITHDRAWAL OF

8 LAND.— 

9 (A) ROUTE DESIGNATION AND ACQUISI10 TION.— 

11 (i) RIGHTS-OF-WAY AND FACILI12 TIES.—The Secretary shall acquire such 

13 rights-of-way and develop such facilities 

14 within the corridor referred to as ‘‘X’’ on 

15 the map dated [————] and on file with 

16 the Secretary as are necessary to carry out 

17 paragraph (1). 

18 (ii) RECOMMENDATIONS.—The Sec19 retary shall consider specific alignment 

20 proposals for the route for the corridor 

21 made by the State of Nevada and the units 

22 of local government within whose jurisdic23 tion the route is proposed to pass. 


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1 (iii) NOTICE AND DESCRIPTION.—Not 

2 later than 180 days after the date of en3 actment of this Act, the Secretary shall— 

4 (I) publish in the Federal Reg5 ister a notice containing a legal de6 scription of the corridor; and 

7 (II) file copies of the map re8 ferred to in clause (i) and the legal 

9 description of the corridor with— 

10 (aa) Congress; 

11 (bb) the Secretary of the In12 terior; 

13 (cc) the Governor of the 

14 State of Nevada; 

15 (dd) the Board of County 

16 Commissioners of Lincoln Coun17 ty, Nevada; 

18 (ee) the Board of County 

19 Commissioners of Nye County, 

20 Nevada; and 

21 (ff) the Archivist of the 

22 United States. 

23 (iv) ADMINISTRATION.— 

24 (I) EFFECT.—The map and legal 

25 description referred to in clause (iii) 


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1 shall have the same force and effect 

2 as if the map and legal description 

3 were included in this Act. 

4 (II) CORRECTIONS.—The Sec5 retary may correct clerical and typo6 graphical errors in the map and legal 

7 description and make minor adjust8 ments in the boundaries of the cor9 ridor. 

10 (B) WITHDRAWAL AND RESERVATION.— 

11 (i) PUBLIC LAND.—Subject to valid 

12 existing rights, the public land depicted on 

13 the map referred to in subparagraph 

14 (A)(iii) is withdrawn from all forms of 

15 entry, appropriation, and disposal under 

16 the public land laws, including the mineral 

17 leasing laws, the geothermal laws, the ma18 terial sale laws, and the mining laws. 

19 (ii) ADMINISTRATIVE JURISDIC20 TION.—Administrative jurisdiction over the 

21 land is transferred from the Secretary of 

22 the Interior to the Secretary. 

23 (iii) RESERVATION.—The land is re24 served for the use of the Secretary for the 

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1 tation facilities and associated activities 

2 under title I of the Nuclear Waste Policy 

3 Act of 1982 (42 U.S.C. 10121 et seq.) 

4 (iv) MEMORANDUM OF UNDER5 STANDING.—The Secretary may also enter 

6 into a memorandum of understanding with 

7 the head of any other agency having ad8 ministrative jurisdiction over other Federal 

9 land used for purposes of the corridor re10 ferred to in subparagraph (A)(i). 

11 (3) ENVIRONMENTAL IMPACT.— 

12 (A) IN GENERAL.—The Secretary shall 

13 comply with all applicable requirements under 

14 the National Environmental Policy Act of 1969 

15 (42 U.S.C. 4321 et seq.) with respect to activi16 ties carried out under this subsection. 

17 (B) CONSIDERATION OF POTENTIAL IM18 PACTS.—To the extent a Federal agency is re19 quired to consider the potential environmental 

20 impact of an activity carried out under this sub21 section, the Federal agency shall adopt, to the 

22 maximum extent practicable, an environmental 

23 impact statement prepared under this sub24 section. 


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1 (C) EFFECT OF ADOPTION OF STATE2 MENT.—The adoption by a Federal agency of 

3 an environmental impact statement under sub4 paragraph (B) shall be considered to satisfy the 

5 responsibilities of the Federal agency under the 

6 National Environmental Policy Act of 1969 (42 

7 U.S.C. 4321 et seq.), and no further consider8 ation under that Act shall be required by the 

9 Federal agency. 

10 (g) NEW PLANT CONTRACTS.—Section 302(a) of the 

11 Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(a)) 

12 is amended by striking paragraph (5) and inserting the 

13 following: 

14 ‘‘(5) REQUIRED PROVISIONS.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), any contract entered into 

17 under this section shall provide that— 

18 ‘‘(i) following issuance of a license to 

19 construct and operate facilities to receive 

20 and store spent nuclear fuel at the Yucca 

21 Mountain site, the Secretary shall take 

22 title to the high-level radioactive waste or 

23 spent nuclear fuel involved as expeditiously 

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1 erator or owner of such waste or spent 

2 fuel; and 

3 ‘‘(ii) in return for the payment of fees 

4 established by this section, the Secretary, 

5 beginning not later than January 31, 

6 1998, shall dispose of the high-level radio7 active waste or spent nuclear fuel involved 

8 as provided in this subtitle. 

9 ‘‘(B) EXCEPTION.—Notwithstanding sub10 paragraph (A), with respect to a nuclear power 

11 facility for which a license application is filed 

12 with the Commission after January 1, 2008, 

13 under section 103 or 104 of the Atomic Energy 

14 Act of 1954 (42 U.S.C. 2133, 2134), a contract 

15 entered into under this section shall— 

16 ‘‘(i) except as provided in clause (ii) 

17 and any terms and conditions relating to 

18 spent nuclear fuel generated before the 

19 date of enactment of the Nuclear Fuel 

20 Management and Disposal Act, be con21 sistent with the terms and conditions of 

22 the contract entitled ‘Contract for Disposal 

23 of Spent Nuclear Fuel and/or High-Level 

24 Radioactive Waste’ that is included in sec25 tion 961.11 of title 10 of the Code of FedVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 eral Regulations (as in effect on the date 

2 of enactment of the Nuclear Fuel Manage3 ment and Disposal Act); 

4 ‘‘(ii) provide for the taking of title to, 

5 and removal of, high-level waste or spent 

6 nuclear fuel beginning not later than 25 

7 years after the date on which the nuclear 

8 power facility begins commercial oper9 ations; and 

10 ‘‘(iii) be entered into not later than 60 

11 days after the date on which the license 

12 application is docketed by the Commis13 sion.’’. 

14 (h) NUCLEAR WASTE FUND.— 

15 (1) BUDGET ACT ALLOCATIONS.—Effective for 

16 fiscal year 2008 and each fiscal year thereafter, 

17 funds appropriated from the Nuclear Waste Fund 

18 established under section 302 of the Nuclear Waste 

19 Policy Act of 1982 (42 U.S.C. 10222) shall not be 

20 subject to— 

21 (A) the allocations for discretionary spend22 ing under section 302(a) of the Congressional 

23 Budget Act of 1974 (2 U.S.C. 633(a)); or 

24 (B) the suballocations of appropriations 

25 committees under section 302(b) of that Act. 


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1 (2) FUND USES.—Section 302(d)(4) of the Nu2 clear Waste Policy Act of 1982 (42 U.S.C. 

3 10222(d)(4)) is amended by striking ‘‘with’’ and all 

4 that follows through ‘‘storage site’’ and inserting 

5 ‘‘with surface facilities within the geologic repository 

6 operations area (including surface facilities for the 

7 receipt, handling, packaging, and storage of spent 

8 nuclear fuel and high-level radioactive waste prior to 

9 emplacement, or transportation to the repository of 

10 spent nuclear fuel or high-level radioactive waste to 

11 surface facilities for the receipt, handling, pack12 aging, and storage of spent nuclear fuel and high13 level radioactive waste prior to emplacement and the 

14 transportation, treating, or packaging of spent nu15 clear fuel or high-level radioactive waste to be dis16 posed of in the repository, to be stored in a mon17 itored retrievable storage site),’’. 

18 (3) BUDGET NEUTRALITY.—As soon as prac19 ticable after the date of enactment of this Act, the 

20 Chairperson of the Committee on the Budget of the 

21 House of Representatives and the Chairperson of the 

22 Committee on Budget of the Senate shall make ad23 justments in the allocation of new budget authority 

24 to the appropriate committees in amounts equal to 

25 the fees reclassified by paragraph (1). 


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1 (i) WASTE CONFIDENCE.—For purposes of a deter2 mination by the Nuclear Regulatory Commission on 

3 whether to grant or amend any license to operate any civil4 ian nuclear power reactor or high-level radioactive waste 

5 or spent fuel storage or treatment facility under the Atom6 ic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the provi7 sions of this Act (including the amendments made by this 

8 Act) and the obligation of the Secretary to develop a re9 pository in accordance with the Nuclear Waste Policy Act 

10 of 1982 (42 U.S.C. 10101 et seq.), shall provide sufficient 

11 and independent grounds for any further findings by the 

12 Nuclear Regulatory Commission of reasonable assurances 

13 that spent nuclear fuel and high-level radioactive waste 

14 would be disposed of safely and in a timely manner. 

15 SEC. 105. ADVANCED COAL GENERATION. 

16 (a) FUTUREGEN FACILITY.— 

17 (1) DEFINITIONS.—In this subsection: 

18 (A) CONSORTIUM.—The term ‘‘Consor19 tium’’ means the consortium described in para20 graph (3). 

21 (B) FACILITY.—The term ‘‘Facility’’ 

22 means the FutureGen Facility authorized under 

23 paragraph (2). 

24 (2) AUTHORIZATION OF FACILITY.—The Sec25 retary shall construct a facility, to be known as the 


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1 ‘‘FutureGen Facility’’, to demonstrate the feasibility 

2 of integrating commercial-scale gasification com3 bined cycle power plant technologies with advanced 

4 clean coal energy technologies, including through the 

5 capture and sequestration of carbon dioxide in geo6 logical formations. 

7 (3) COOPERATIVE AGREEMENT.—The Secretary 

8 shall enter into a cooperative agreement with a non9 profit consortium of domestic and international coal10 fueled power producers, domestic and international 

11 coal companies, and other interested parties to pro12 vide for the financing of the Facility. 

13 (4) OBJECTIVES.—The Secretary shall establish 

14 objectives for the Facility, including objectives pro15 viding for— 

16 (A) the operation of the Facility by cal17 endar year 2012; 

18 (B) the Facility to be designed in a man19 ner— 

20 (i) to achieve— 

21 (I) at least a 99-percent reduc22 tion in sulfur dioxide emissions,; and 

23 (II) at least a 90-percent reduc24 tion in mercury emissions based on 

25 the mercury content of coal; 


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1 (ii) to emit— 

2 (I) not more than 0.05 pounds of 

3 nitrogen oxide emissions per million 

4 Btu; and 

5 (II) not more than 0.005 pounds 

6 of total particulate emissions in the 

7 flue gas per million Btu; 

8 (iii) to capture and permanently se9 quester at least 1,000,000 metric tons per 

10 year of carbon dioxide in geological forma11 tions; 

12 (iv) to determine whether the tech13 nologies used by the Facility apply to var14 ious coal types; and 

15 (v) to assess the feasibility of elec16 tricity generation from coal using advanced 

17 clean coal technology with carbon capture 

18 and sequestration at a cost that is not 

19 greater than 110 percent of the average 

20 cost of operation of commercial integrated 

21 coal gasification combined cycle electricity 

22 generating plant operating in the United 

23 States as of the date of enactment of this 

24 Act; and 


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1 (C) the completion of an environmental im2 pact statement for the Facility by not later 

3 than September 30, 2007. 

4 (5) SYSTEM INTEGRATION.—To reduce tech5 nical risk and focus development efforts on system 

6 integration, the Secretary shall, to the maximum ex7 tent practicable, ensure that the Facility is designed 

8 in a manner to use, as appropriate— 

9 (A) available advanced clean coal tech10 nology; and 

11 (B) first-of-a-kind technology systems and 

12 components. 

13 (6) DATA PROTECTION.—Section 402(h) of the 

14 Energy Policy Act of 2005 (42 U.S.C. 15962(h)) 

15 shall apply to the dissemination of information col16 lected by the Facility. 

17 (7) COST-SHARING REQUIREMENT.— 

18 (A) FEDERAL SHARE.— 

19 (i) IN GENERAL.—The Federal share 

20 of the total costs of constructing the Facil21 ity shall be not more than 74 percent. 

22 (ii) CONTRIBUTIONS FROM OTHER

23 COUNTRIES.—The Secretary may credit to24 ward the Federal share contributions for 


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1 the Facility received by the Secretary from 

2 other countries. 

3 (B) NON-FEDERAL SHARE.— 

4 (i) IN GENERAL.—The non-Federal 

5 share shall be paid by the Consortium. 

6 (ii) SOURCE OF FUNDS.—To pay the 

7 non-Federal share, the Consortium may 

8 use amounts made available to the Consor9 tium by States, technology providers, and 

10 other non-Federal entities. 

11 (8) TITLE TO FACILITY.— 

12 (A) CONVEYANCE TO CONSORTIUM.—The 

13 Secretary may convey to the Consortium title to 

14 the Facility— 

15 (i) on a determination by the Sec16 retary that the conveyance would best ac17 complish the objectives established for the 

18 Facility under paragraph (4); or 

19 (ii) on the date on which the dem20 onstration activities under this subsection 

21 are terminated. 

22 (B) CONVEYANCE TO SECRETARY.—The 

23 Secretary may agree to take title to the Facility 

24 if the Secretary determines that the Consortium 


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1 has insufficient funds to construct or operate 

2 the Facility. 

3 (9) AUTHORIZATION OF APPROPRIATIONS.— 

4 There are authorized to be appropriated to the Sec5 retary to carry out this subsection— 

6 (A) $108,000,000 for fiscal year 2008; 

7 (B) $233,000,000 for fiscal year 2009; 

8 (C) $233,000,000 for fiscal year 2010; 

9 (D) $233,000,000 for fiscal year 2011; 

10 (E) $92,000,000 for fiscal year 2012; and 

11 (F) such sums as are necessary for each of 

12 fiscal years 2013 through 2017. 

13 (b) DEPLOYMENT OF ADVANCED COAL GENERATION

14 UNITS.— 

15 (1) DEFINITIONS.—In this subsection: 

16 (A) AIR SEPARATION UNIT.—The term 

17 ‘‘air separation unit’’ means a technology capa18 ble of using ambient air to separate and con19 centrate a gas with 95 percent oxygen con20 centration for use in oxy fuel technology. 

21 (B) CAPTURE-READY.—The term ‘‘capture 

22 ready’’ means the design of a new coal-fired 

23 unit that reduces the cost of and facilitates the 

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1 ture technologies after the unit has been placed 

2 into service. 

3 (C) OXY FUEL.—The term ‘‘oxy fuel’’ 

4 means a coal-fired boiler that burns coal in an 

5 environment with a 95 percent oxygen con6 centration. 

7 (D) SUBCRITICAL PULVERIZED COAL

8 UNIT.—The term ‘‘subcritical pulverized coal 

9 unit’’ means a coal-fired boiler that operates— 

10 (i) at a pressure below 3,200 pounds 

11 per square inch; and 

12 (ii) below a temperature of 1,025 de13 grees Fahrenheit. 

14 (E) SUPERCRITICAL PULVERIZED COAL

15 UNIT.—The term ‘‘supercritical pulverized coal 

16 unit’’ means a coal-fired boiler that— 

17 (i) reaches an electricity generating 

18 efficiency of from 37 percent to 40 percent 

19 (High Heating Value); and 

20 (ii) operates at a minimum pressure 

21 of 3,500 pounds per square inch and a 

22 minimum temperature of 1,050 degrees 

23 Fahrenheit. 

24 (F) ULTRASUPERCRITICAL PULVERIZED

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1 verized coal unit’’ means a coal-fired boiler 

2 that— 

3 (i) reaches an electricity generating 

4 efficiency of more than 43 percent (High 

5 Heating Value); and 

6 (ii) operates at a minimum pressure 

7 of 4,600 pounds per square inch and a 

8 minimum temperature of 1,110 degrees 

9 Fahrenheit. 

10 (2) EXEMPTION FROM NEW SOURCE REVIEW.— 

11 Effective beginning on the date of enactment of this 

12 section, any subcritical pulverized coal unit in exist13 ence on the date of enactment of this Act that is re14 built with a supercritical pulverized coal unit, or an 

15 ultrasupercritical pulverized coal unit, that includes 

16 post-combustion carbon dioxide capture technology 

17 or an oxy fuel pulverized coal unit shall be exempt 

18 from any new source review requirements under the 

19 Clean Air Act (42 U.S.C. 7401 et seq.) if— 

20 (A) there is no appreciable increase in the 

21 rate of regulated emissions calculated by quan22 tity of pollutants removed per ton of coal used; 

23 and 

24 (B) the new unit does not— 


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1 (i) cause the area in which the unit is 

2 located to deteriorate from an attainment 

3 to a nonattainment area; or 

4 (ii) alter the progress of the State in 

5 achieving attainment under the applicable 

6 State implementation plan. 

7 (3) LOAN GUARANTEES FOR OXY FUEL AIR

8 SEPARATION UNITS AND AIR-BLOWN

9 ULTRASUPERCRITICAL PULVERIZED COAL UNITS

10 THAT ARE CAPTURE-READY.—Section 1703(b) of the 

11 Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 

12 amended by adding at the end the following: 

13 ‘‘(11) Air separation units and air-blown 

14 ultrasupercritical pulverized coal units that are cap15 ture ready (as the terms are defined in section 

16 105(b)(1) of the Clean, Reliable, Efficient and Se17 cure Energy Act).’’. 

18 TITLE II—TRANSPORTATION 

19 SECTOR 

20 SEC. 201. AUTOMOBILE FUEL ECONOMY. 

21 (a) FUEL ECONOMY STANDARDS.—Section 32902 of 

22 title 49, United States Code, is amended by striking sub23 sections (a) and (b) and inserting the following: 

24 ‘‘(a) IN GENERAL.—Not later than 3 years before the 

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1 tation, by regulation, shall prescribe average fuel economy 

2 standards for automobiles manufactured by a manufac3 turer for that model year in accordance with subsection 

4 (b). 

5 ‘‘(b) STANDARDS BASED ON AUTOMOBILE CLASS6 ES.—In prescribing average fuel economy standards under 

7 subsection (a), the Secretary of Transportation shall pre8 scribe different standards for different classes of auto9 mobiles, as determined by the product of the tire footprint 

10 and weight of the automobiles in each such class.’’. 

11 (b) ANNUAL INCREASES IN FUEL ECONOMY STAND12 ARDS.—Section 32902(c) of title 49, United States Code, 

13 is amended to read as follows: 

14 ‘‘(c) ANNUAL INCREASES IN FUEL ECONOMY STAND15 ARDS.—(1) For the first model year subject to the require16 ments of this subsection, the average fuel economy stand17 ard for each class of automobile shall be the average com18 bined highway and city miles per gallon performance of 

19 all automobiles within that class of automobiles during the 

20 previous model year (rounded up to the nearest 1/10 of 

21 a gallon). 

22 ‘‘(2) Except as provided under paragraph (3), for 

23 each model year after the model year described in para24 graph (1), the average fuel economy standard attained by 

25 each fleet of automobiles manufactured or sold in the 


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1 United States shall be not less than 4 percent higher than 

2 the average fuel economy for such fleet during the pre3 vious model year. 

4 ‘‘(3) The Secretary of Transportation may prescribe 

5 an average fuel economy standard for a class of auto6 mobiles in a model year that is lower than the standard 

7 required under paragraph (2) if, in consultation with the 

8 National Academy of Sciences, the Secretary determines 

9 that a 4 percent increase in the average fuel economy 

10 standard for that class of automobiles in that model 

11 year— 

12 ‘‘(A) is not technologically achievable; or 

13 ‘‘(B) cannot be achieved without compromising 

14 safety. 

15 ‘‘(4) Any average fuel economy standard prescribed 

16 for a class of automobiles in a model year that is lower 

17 than the standard required under paragraph (2) shall be 

18 the maximum standard that— 

19 ‘‘(A) is technologically achievable; and 

20 ‘‘(B) does not compromise passenger safety.’’. 

21 (c) INCENTIVES FOR AUTOMOBILE MANUFACTUR22 ERS.— 

23 (1) IN GENERAL.—Section 712(a) of the En24 ergy Policy Act of 2005 (42 U.S.C. 16062(a)) is 

25 amended in the second sentence by striking ‘‘grants 


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1 to automobile manufacturers’’ and inserting ‘‘grants 

2 and loan guarantees under section 1703(b)(8) to 

3 automobile manufacturers and suppliers’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 1703(b) of the Energy Policy Act of 2005 (42 

6 U.S.C. 16513(b)) is amended by striking paragraph 

7 (8) and inserting the following: 

8 ‘‘(8) For new or for the retooling of existing 

9 production facilities for the manufacture of fuel effi10 cient vehicles or parts for fuel efficient vehicles, in11 cluding electric drive transportation technology and 

12 advanced diesel vehicles.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section— 

15 (1) shall take effect on January 1 of the cal16 endar year following the date of the enactment of 

17 this Act; and 

18 (2) shall apply to automobiles manufactured in 

19 any model year beginning not less than 30 months 

20 after such effective date. 

21 SEC. 202. REPORT ON AVERAGE FUEL ECONOMY OF FED22 ERAL FLEET. 

23 (a) IN GENERAL.—The Secretary shall annually sub24 mit to the Committee on Energy and Natural Resources 

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1 merce of the House of Representatives a report that com2 piles any information on the average fuel economy of light 

3 duty vehicles of each Federal agency (other than vehicles 

4 exempted under subsection (c)) collected by the Secretary 

5 during the applicable fiscal year under the Federal Energy 

6 Management Program. 

7 (b) COMPONENTS.—The report submitted under sub8 section (a) shall specify, with respect to each Federal 

9 agency— 

10 (1) the number of dual fueled vehicles owned or 

11 leased by the Federal agency; 

12 (2) the quantity of conventional gasoline used 

13 by the Federal agency during the preceding fiscal 

14 year; 

15 (3) the quantity of renewable fuel used by the 

16 Federal agency during the preceding fiscal year; 

17 (4) the number of vehicles purchased or leased 

18 during the preceding fiscal year; 

19 (5) the fuel economy of newly-purchased and 

20 newly-leased vehicles; and 

21 (6) the estimated time period, and the number 

22 of new vehicles needed to be purchased or leased, in 

23 order to achieve fuel efficiency requirements. 

24 (c) EXEMPTION.—The Secretary shall exclude from 

25 the report any vehicles of the Department of Defense that 


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1 the Secretary of Defense determines would compromise 

2 national security interests by reporting such figures pub3 licly. 

4 (d) AVAILABILITY.—The report submitted under sub5 section (a) shall be made available for inspection by the 

6 public. 

7 SEC. 203. TRAFFIC SIGNAL COORDINATION. 

8 (a) IN GENERAL.—Of funds made available to carry 

9 out this Act, the Secretary shall use not less than 

10 $2,000,000 per year to carry out, through the Clean Cities 

11 Program established under sections 404, 409, and 505 of 

12 the Energy Policy Act of 1992 (42 U.S.C. 13231, 13235, 

13 13256), a program for traffic signal coordination. 

14 (b) REQUIREMENT.—The Secretary shall ensure that 

15 any activity under the program under subsection (a) shall 

16 be carried out by a certified civil engineer with experience 

17 relating to traffic patterns, signals, and congestion. 

18 (c) ACTION BY STATE AND LOCAL GOVERNMENTS.— 

19 (1) REPORT.—Each unit of State or local gov20 ernment that receives funds from the Secretary to 

21 carry out an activity under the program under sub22 section (a) shall submit to the Secretary a report de23 scribing the quantity of fuel savings of the State as 

24 a result of the activity— 


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1 (A) by not later than 3 years after the 

2 date on which the State receives the funds; and 

3 (B) every 3 years thereafter. 

4 (2) TREATMENT OF EMISSION REDUCTIONS.— 

5 Any emission reductions due to fuel savings in a 

6 State as a result of an activity under the program 

7 under subsection (a) shall be taken into account 

8 with respect to the State implementation plan of the 

9 State under the Clean Air Act (42 U.S.C. 7401 et 

10 seq.), regardless of whether the activity is part of a 

11 transportation implementation plan of the State. 

12 SEC. 204. RENEWABLE CONTENT OF DIESEL FUEL. 

13 (a) IN GENERAL.—Section 211 of the Clean Air Act 

14 (42 U.S.C. 7545) is amended— 

15 (1) by redesignating the first subsection (r) (re16 lating to the definition of the term ‘‘manufacturer’’) 

17 as subsection (t) and moving the subsection so as to 

18 appear after subsection (s); and 

19 (2) by inserting after subsection (o) the fol20 lowing: 

21 ‘‘(p) ALTERNATIVE BIODIESEL STANDARD.— 

22 ‘‘(1) DEFINITION OF RENEWABLE FUEL.— 

23 ‘‘(A) IN GENERAL.—In this section, the 

24 term ‘renewable fuel’ means— 


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1 ‘‘(i)(I) motor vehicle fuel that is pro2 duced from grain, starch, oil seeds, or veg3 etable, animal, or fish material, including 

4 fats, greases, and oils, sugarcane, sugar 

5 beets, sugar components, tobacco, potatoes, 

6 or other biomass; 

7 ‘‘(II) natural gas produced from a 

8 biogas source, including a landfill, sewage 

9 waste treatment plant, feedlot, or any 

10 other area in which decaying organic mat11 ter is found; and 

12 ‘‘(ii) motor vehicle fuel that is used to 

13 replace or reduce the quantity of fossil 

14 fuels in a fuel mixture used to operate a 

15 motor vehicle. 

16 ‘‘(B) INCLUSION.—In this section, the 

17 term ‘renewable fuel’ includes a diesel fuel sub18 stitute produced from— 

19 ‘‘(i) animal fat; 

20 ‘‘(ii) vegetable oil; 

21 ‘‘(iii) recycled yellow grease; 

22 ‘‘(iv) thermal depolymerization; 

23 ‘‘(v) thermochemical conversion; or 

24 ‘‘(vi) a blend of diesel and ethanol. 

25 ‘‘(2) ALTERNATIVE BIODIESEL PROGRAM.— 


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1 ‘‘(A) REGULATIONS.— 

2 ‘‘(i) IN GENERAL.—Not later than 1 

3 year after the date of acceptance of the 

4 ASTM standard for biodiesel by the Ad5 ministrator, after consultation with indus6 try representatives, the Administrator shall 

7 promulgate regulations to ensure that die8 sel fuel sold or introduced into commerce 

9 in the United States (except in noncontig10 uous States or territories), on an annual 

11 average basis, contains the applicable vol12 ume of biodiesel fuel determined in accord13 ance with subparagraph (B). 

14 ‘‘(ii) NONCONTIGUOUS STATE OPT15 IN.— 

16 ‘‘(I) IN GENERAL.—On the peti17 tion of a noncontiguous State or terri18 tory, the Administrator may allow the 

19 alternative biodiesel fuel program es20 tablished under this subsection to 

21 apply in the noncontiguous State or 

22 territory at the same time or at any 

23 time after the Administrator promul24 gates regulations under this subpara25 graph. 


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1 ‘‘(II) OTHER ACTIONS.—In car2 rying out this clause, the Adminis3 trator may— 

4 ‘‘(aa) promulgate or revise 

5 regulations under this paragraph; 

6 ‘‘(bb) establish applicable 

7 percentages under paragraph (3); 

8 ‘‘(cc) provide for the genera9 tion of credits under paragraph 

10 (4); and 

11 ‘‘(dd) take such other ac12 tions as are necessary to allow 

13 for the application of the alter14 native biodiesel program in a 

15 noncontiguous State or territory. 

16 ‘‘(iii) PROVISIONS OF REGULA17 TIONS.—Regardless of the date of promul18 gation, the regulations promulgated under 

19 clause (i)— 

20 ‘‘(I) shall contain compliance pro21 visions applicable to refineries, blend22 ers, distributors, and importers, as 

23 appropriate, to ensure that the re24 quirements of this paragraph are met; 

25 but 


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1 ‘‘(II) shall not— 

2 ‘‘(aa) restrict geographic 

3 areas in which biodiesel fuel may 

4 be used; or 

5 ‘‘(bb) impose any per-gallon 

6 obligation for the use of biodiesel 

7 fuel. 

8 ‘‘(iv) FAILURE TO PROMULGATE REG9 ULATIONS.—If the Administrator fails to 

10 promulgate regulations in accordance with 

11 clause (i), the percentage of renewable fuel 

12 in the diesel motor pool sold or introduced 

13 into commerce in the United States for 

14 calendar year 2008, on a volume basis, 

15 shall be not less than 0.006 percent. 

16 ‘‘(B) APPLICABLE VOLUME.— 

17 ‘‘(i) CALENDAR YEARS 2008 THROUGH

18 2015.—For the purpose of subparagraph 

19 (A), the applicable volume for any of cal20 endar years 2007 through 2014 shall be 

21 determined in accordance with the fol22 lowing table: 

‘‘Calendar Year Available Volume of 

Biodiesel Fuel 

(In millions of gallons) 

2008 ................................................................................................... 250

2009 ................................................................................................... 500

2010 ................................................................................................... 750

2011 ................................................................................................... 1,000


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‘‘Calendar Year Available Volume of 

Biodiesel Fuel 

(In millions of gallons) 

2012 ................................................................................................... 1,250

2013 ................................................................................................... 1,500

2014 ................................................................................................... 1,750

2015 ................................................................................................... 2,000. 

1 ‘‘(ii) CALENDAR YEAR 2016 AND

2 THEREAFTER.—Subject to clause (iii), for 

3 the purposes of subparagraph (A), the ap4 plicable volume for calendar year 2016 and 

5 each calendar year thereafter shall be de6 termined by the Administrator, in coordi7 nation with the Secretary of Agriculture 

8 and the Secretary of Energy, based on a 

9 review of the implementation of the pro10 gram during calendar years 2007 through 

11 2014, including a review of— 

12 ‘‘(I) the impact of the use of bio13 diesel fuel on the environment, air 

14 quality, energy security, job creation, 

15 and rural economic development; and 

16 ‘‘(II) the expected annual rate of 

17 future production of renewable fuels 

18 to be used as— 

19 ‘‘(aa) a blend component; or 

20 ‘‘(bb) a replacement for die21 sel. 


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1 ‘‘(iii) MINIMUM APPLICABLE VOL2 UME.—For the purpose of subparagraph 

3 (A), the applicable volume for calendar 

4 year 2016 and each calendar year there5 after shall be equal to the product obtained 

6 by multiplying— 

7 ‘‘(I) the number of gallons of die8 sel fuel that the Administrator esti9 mates will be sold or introduced into 

10 commerce in the calendar year; and 

11 ‘‘(II) the ratio that— 

12 ‘‘(aa) 2,000,000,000 gallons 

13 of biodiesel fuel; bears to 

14 ‘‘(bb) the number of gallons 

15 of diesel fuel sold or introduced 

16 into commerce in calendar year 

17 2015. 

18 ‘‘(3) APPLICABLE PERCENTAGES.— 

19 ‘‘(A) PROVISION OF ESTIMATE OF VOL20 UMES OF DIESEL SALES.—Not later than Octo21 ber 31 of each of calendar years 2007 through 

22 2013, the Administrator of the Energy Infor23 mation Administration shall provide to the Ad24 ministrator an estimate with respect to the fol25 lowing calendar year, of the volumes of diesel 


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1 fuel projected to be sold or introduced into com2 merce in the United States. 

3 ‘‘(B) DETERMINATION OF APPLICABLE

4 PERCENTAGES.— 

5 ‘‘(i) IN GENERAL.—Not later than 

6 November 30 of each calendar years 2007 

7 through 2013, based on the estimate pro8 vided under subparagraph (A), the Admin9 istrator shall determine and publish in the 

10 Federal Register, with respect to the fol11 lowing calendar year, the biodiesel fuel ob12 ligation that ensures that the requirements 

13 of paragraph (2) are met. 

14 ‘‘(ii) REQUIRED ELEMENTS.—The bio15 diesel obligation determined for a calendar 

16 year under clause (i) shall— 

17 ‘‘(I) be applicable to refineries, 

18 blenders, and importers, as appro19 priate; 

20 ‘‘(II) be expressed in terms of a 

21 volume percentage of diesel fuel sold 

22 or introduced into commerce in the 

23 United States; and 

24 ‘‘(III) subject to subparagraph 

25 (C)(i), consist of a single applicable 


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1 percentage that applies to all cat2 egories of persons specified in sub3 clause (I). 

4 ‘‘(C) ADJUSTMENTS.—In determining the 

5 applicable percentage for a calendar year, the 

6 Administrator shall make adjustments— 

7 ‘‘(i) to prevent the imposition of re8 dundant obligations on any person speci9 fied in subparagraph (B)(ii)(I); and 

10 ‘‘(ii) to account for the use of bio11 diesel fuel during the previous calendar 

12 year by small refineries that are exempt 

13 under paragraph (7). 

14 ‘‘(4) CREDIT PROGRAM.— 

15 ‘‘(A) IN GENERAL.—The regulations pro16 mulgated under paragraph (2)(A) shall pro17 vide— 

18 ‘‘(i) for the generation of an appro19 priate amount of credits by any person 

20 that refines, blends, or imports diesel fuel 

21 that contains a quantity of biodiesel that is 

22 greater than the quantity required under 

23 paragraph (2); 


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1 ‘‘(ii) for the generation of credits by 

2 small refineries in accordance with para3 graph (7)(C). 

4 ‘‘(B) USE OF CREDITS.—A person that 

5 generates credits under subparagraph (A) may 

6 use the credits, or transfer all or a portion of 

7 the credits to another person, for the purpose 

8 of complying with paragraph (2). 

9 ‘‘(C) DURATION OF CREDITS.—A credit 

10 generated under this paragraph shall be valid 

11 during the 1-year period beginning on the date 

12 on which the credit is generated. 

13 ‘‘(D) INABILITY TO GENERATE OR PUR14 CHASE SUFFICIENT CREDITS.—The regulations 

15 promulgated under paragraph (2)(A) shall in16 clude provisions allowing any person that is un17 able to generate or purchase sufficient credits 

18 to meet the requirements of paragraph (2) to 

19 carry forward a biodiesel fuel deficit on condi20 tion that the person, in the calendar year fol21 lowing the year in which the biodiesel fuel def22 icit is created— 

23 ‘‘(i) achieves compliance with the bio24 diesel fuel requirement under paragraph 

25 (2); and 


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1 ‘‘(ii) generates or purchases additional 

2 biodiesel fuel credits to offset the biodiesel 

3 fuel deficit of the previous year. 

4 ‘‘(5) SEASONAL VARIATIONS IN BIODIESEL

5 USE.— 

6 ‘‘(A) STUDY.—For each of calendar years 

7 2008 through 2015, the Administrator of the 

8 Energy Information Administration shall con9 duct a study of biodiesel fuel blending to deter10 mine whether there are excessive seasonal vari11 ations in the use of biodiesel fuel. 

12 ‘‘(B) REGULATION OF EXCESSIVE SEA13 SONAL VARIATIONS.—If, for any calendar year, 

14 the Administrator of the Energy Information 

15 Administration, based on the study under sub16 paragraph (A), makes the determinations speci17 fied in subparagraph (C), the Administrator of 

18 the Environmental Protection Agency shall pro19 mulgate regulations to ensure that 25 percent 

20 or more of the quantity of biodiesel fuel nec21 essary to meet the requirements under para22 graph (2) is used during each of the 2 periods 

23 specified in subparagraph (D) of each subse24 quent calendar year. 


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1 ‘‘(C) DETERMINATIONS.—The determina2 tions referred to in subparagraph (B) are 

3 that— 

4 ‘‘(i) less than 25 percent of the quan5 tity of biodiesel fuel necessary to meet the 

6 requirements of paragraph (2) has been 

7 used during 1 of the 2 periods specified in 

8 subparagraph (D) of the calendar year; 

9 ‘‘(ii) a pattern of excessive seasonal 

10 variation described in clause (i) will con11 tinue in subsequent calendar years; and 

12 ‘‘(iii) promulgating regulations or 

13 other requirements to impose a 25 percent 

14 or more seasonal use of biodiesel fuel will 

15 not prevent or interfere with the attain16 ment of national ambient air quality stand17 ards or significantly increase the price of 

18 diesel fuels to the consumer. 

19 ‘‘(D) PERIODS.—The 2 periods referred to 

20 in this paragraph are— 

21 ‘‘(i) April through September; and 

22 ‘‘(ii) January through March and Oc23 tober through December. 

24 ‘‘(E) EXCLUSION.—Biodiesel fuel blended 

25 or consumed in calendar year 2008 in a State 


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1 that has received a waiver under section 209(b) 

2 shall not be included in the study under sub3 paragraph (A). 

4 ‘‘(F) STATE EXEMPTION FROM

5 SEASONALITY REQUIREMENTS.—Notwith6 standing any other provision of law, the 

7 seasonality requirement relating to biodiesel 

8 fuel use established by this paragraph shall not 

9 apply to any State that has received a waiver 

10 under section 209(b) or any State dependent on 

11 refineries in the State for diesel supplies. 

12 ‘‘(6) WAIVERS.— 

13 ‘‘(A) IN GENERAL.—The Administrator, in 

14 consultation with the Secretary of Agriculture 

15 and the Secretary of Energy, may waive the re16 quirements of paragraph (2), in whole or in 

17 part, on receipt of a petition by 1 or more 

18 States, by reducing the national quantity of bio19 diesel fuel required under paragraph (2), based 

20 on a determination by the Administrator, after 

21 public notice and opportunity for comment, 

22 that— 

23 ‘‘(i) implementation of the require24 ment would severely harm the economy or 


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1 environment of a State, a region, or the 

2 United States; or 

3 ‘‘(ii) there is an inadequate domestic 

4 supply of renewable fuel. 

5 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad6 ministrator, in consultation with the Secretary 

7 of Agriculture and the Secretary of Energy, 

8 shall approve or disapprove a State petition for 

9 a waiver of the requirements of paragraph (2) 

10 not later than 90 days after the date on which 

11 the petition is received by the Administrator. 

12 ‘‘(C) TERMINATION OF WAIVERS.— 

13 ‘‘(i) IN GENERAL.—A waiver granted 

14 under subparagraph (A) shall terminate 

15 after 1 year, but may be renewed by the 

16 Administrator after consultation with the 

17 Secretary of Agriculture and the Secretary 

18 of Energy. 

19 ‘‘(ii) CONSECUTIVE WAIVERS.—Not 

20 more than 3 consecutive waivers may be 

21 granted to any 1 State. 

22 ‘‘(7) SMALL REFINERIES.— 

23 ‘‘(A) TEMPORARY EXEMPTION.— 


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1 ‘‘(i) IN GENERAL.—Paragraph (2) 

2 shall not apply to small refineries until cal3 endar year 2012. 

4 ‘‘(ii) EXTENSION OF EXEMPTION.— 

5 ‘‘(I) STUDY BY SECRETARY OF

6 ENERGY.—Not later than December 

7 31, 2010, the Secretary of Energy 

8 shall conduct for the Administrator a 

9 study to determine whether compli10 ance with paragraph (2) would impose 

11 a disproportionate economic hardship 

12 on small refineries. 

13 ‘‘(II) EXTENSION OF EXEMP14 TION.—In the case of a small refinery 

15 that the Secretary of Energy deter16 mines under subclause (I) would be 

17 subject to a disproportionate economic 

18 hardship if required to comply with 

19 paragraph (2), the Administrator 

20 shall extend the exemption under 

21 clause (i) for the small refinery for a 

22 period of not less than an additional 

23 2 years. 

24 ‘‘(B) PETITIONS BASED ON DISPROPOR25 TIONATE ECONOMIC HARDSHIP.— 


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1 ‘‘(i) EXTENSION OF EXEMPTION.—A 

2 small refinery may at any time petition the 

3 Administrator for an extension of the ex4 emption under subparagraph (A) for the 

5 reason of disproportionate economic hard6 ship. 

7 ‘‘(ii) EVALUATION OF PETITIONS.—In 

8 evaluating a petition under clause (i), the 

9 Administrator, in consultation with the 

10 Secretary of Energy, shall consider the 

11 findings of the study under subparagraph 

12 (A)(ii) and other economic factors. 

13 ‘‘(iii) DEADLINE FOR ACTION ON PE14 TITIONS.—The Administrator shall act on 

15 any petition submitted by a small refinery 

16 for a hardship exemption not later than 90 

17 days after the date of receipt of the peti18 tion. 

19 ‘‘(C) CREDIT PROGRAM.—If a small refin20 ery notifies the Administrator that the small re21 finery waives the exemption under subpara22 graph (A), the regulations promulgated under 

23 paragraph (2)(A) shall provide for the genera24 tion of credits by the small refinery under paraVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 graph (4) beginning in the calendar year fol2 lowing the date of notification. 

3 ‘‘(D) OPT-IN FOR SMALL REFINERIES.—A 

4 small refinery shall be subject to paragraph (2) 

5 if the small refinery notifies the Administrator 

6 that the small refinery waives the exemption 

7 under subparagraph (A).’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 211(d) of the Clean Air Act (42 

10 U.S.C. 7545(d)) is amended— 

11 (A) in paragraph (1)— 

12 (i) in the first sentence, by striking 

13 ‘‘or (o)’’ each place it appears and insert14 ing ‘‘(o), or (p)’’; and 

15 (ii) in the second sentence, by striking 

16 ‘‘or (o)’’ and inserting ‘‘(o), or (p)’’; and 

17 (B) in the first sentence of paragraph (2), 

18 by striking ‘‘and (o)’’ each place it appears and 

19 inserting ‘‘(o), and (p)’’. 

20 (2) Section 211(o) of the Clean Air Act (42 

21 U.S.C. 7545(o)) is amended— 

22 (A) in paragraph (1)(C), by striking clause 

23 (ii) and inserting the following: 


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1 ‘‘(ii) INCLUSION.—The term ‘renew2 able fuel’ includes cellulosic biomass eth3 anol and waste derived ethanol.’’; 

4 (B) in paragraph (5)(A)— 

5 (i) in clause (i), by inserting ‘‘and’’ 

6 after the semicolon at the end; 

7 (ii) by striking clause (ii); and 

8 (iii) by redesignating clause (iii) as 

9 clause (ii); and 

10 (C) in paragraph (10)— 

11 (i) in the paragraph heading— 

12 (I) by inserting ‘‘AND BIO13 DIESEL’’ after ‘‘ETHANOL’’; and 

14 (II) by striking ‘‘ANALYSIS’’ and 

15 inserting ‘‘ANALYSES’’; and 

16 (ii) in subparagraph (A)(i), by strik17 ing ‘‘ethanol production industry’’ and in18 serting ‘‘ethanol production and biodiesel 

19 production industries’’. 

20 (c) AMENDMENTS TO THE ENERGY POLICY ACT OF

21 2005.—Section 1501(d) of the Energy Policy Act of 2005 

22 (42 U.S.C. 7545 note; Public Law 109–58) is amended— 

23 (1) in paragraph (1)(A)— 

24 (A) in the matter preceding clause (i), by 

25 inserting ‘‘and each diesel, low sulfur diesel, 


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1 and ultra low sulfur diesel use area’’ after 

2 ‘‘each reformulated gasoline use area’’; 

3 (B) in clause (iii), by striking ‘‘and’’ at the 

4 end; and 

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

6 ‘‘(v) diesel, low sulfur diesel, and ultra 

7 low sulfur diesel containing biodiesel; and’’; 

8 and 

9 (2) in the second sentence of paragraph (2), by 

10 striking ‘‘gasoline distribution patterns’’ and insert11 ing ‘‘gasoline distribution and diesel distribution pat12 terns’’. 

13 SEC. 205. COAL-TO-LIQUID AND GAS-TO-LIQUID TECH14 NOLOGIES. 

15 (a) FINDINGS.—Congress finds that— 

16 (1) coal-to-liquid and gas-to-liquid technologies 

17 are mature, known technologies that are used 

18 around the world; 

19 (2) with sizable coal reserves, the United States 

20 is ideally suited for the use of coal-to-liquid and gas21 to-liquid technologies to produce alternatives for pe22 troleum products; and 

23 (3) it is in the best interest of the national se24 curity of the United States to develop and commer25 cialize a synthetic fuels industry. 


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1 (b) COAL-TO-LIQUID AND GAS-TO-LIQUID FACILI2 TIES LOAN GUARANTEE PROGRAM.— 

3 (1) AMOUNT.—Section 1702(c) of the Energy 

4 Policy Act of 2005 (42 U.S.C. 16512(c)) is amend5 ed— 

6 (A) by striking ‘‘Unless’’ and inserting the 

7 following: 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), unless’’; 

10 and 

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

12 ‘‘(2) EXCEPTION.—The amount of a loan guar13 antee provided under this title for a project de14 scribed in section 1703(b)(11) shall be not more 

15 than the lesser of— 

16 ‘‘(A) 50 percent of the project cost of the 

17 facility that is the subject of the guarantee, as 

18 estimated at the time at which the guarantee is 

19 issued; or 

20 ‘‘(B) $100,000,000’’. 

21 (2) ELIGIBLE PROJECTS.—Section 1703(b) of 

22 the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) 

23 is amended by adding at the end the following: 


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1 ‘‘(11) Coal-to-liquid and gas-to-liquid facilities 

2 that produce not less than 150,000,000 gallons of 

3 liquid transportation fuel per year.’’. 

4 (3) AUTHORIZATION OF APPROPRIATIONS.— 

5 Section 1704 of the Energy Policy Act of 2005 (42 

6 U.S.C. 16514) is amended by adding at the end the 

7 following: 

8 ‘‘(c) COAL-TO-LIQUID AND GAS-TO-LIQUID

9 PROJECTS.—There are authorized to be appropriated such 

10 sums as are necessary to provide the cost of guarantees 

11 for projects involving coal-to-liquid and gas-to-liquid facili12 ties under section 1703(b)(11).’’. 

13 (c) DEPARTMENT OF DEFENSE REQUIREMENTS FOR

14 UTILIZATION OF COAL-TO-LIQUID OR GAS-TO-LIQUID

15 FUEL IN MILITARY AIRCRAFT.— 

16 (1) IN GENERAL.—Subchapter II of chapter 

17 134 of title 10, United States Code, is amended by 

18 adding at the end the following new section: 

19 ‘‘§ 2263. Fuel: minimum requirements for utilization 

20 of coal-to-liquid or gas-to-liquid fuel 

21 ‘‘(a) IN GENERAL.—Of the total amount of fuel uti22 lized by the Department of Defense in a calendar year, 

23 the percentage of such fuel that is coal-to-liquid fuel, gas24 to-liquid fuel, or both shall be the percentage as follows: 


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1 ‘‘(1) In the first applicable utilization year, 5 

2 percent. 

3 ‘‘(2) Except as provided in subsection (c), in 

4 any year after the first applicable utilization year, a 

5 percentage that is 5 greater than the percentage of 

6 utilization in the preceding year under this section. 

7 ‘‘(b) FIRST APPLICABLE UTILIZATION YEAR.—For 

8 purposes of subsection (a)(1), the first applicable utiliza9 tion year for coal-to-liquid fuel and gas-to-liquid fuel shall 

10 be the earlier of the following: 

11 ‘‘(1) The first calendar year after the Secretary 

12 Defense certifies to Congress that at least 50 per13 cent of the aircraft fleet of the Department has the 

14 proven capability to utilize coal-to-liquid fuel or gas15 to-liquid fuel without— 

16 ‘‘(A) any adverse effect on the aircraft en17 gines of such fleet; 

18 ‘‘(B) any adverse effect on the overall per19 formance of the aircraft; and 

20 ‘‘(C) any adverse effect on health and safe21 ty of the aircrew, passengers, and maintenance 

22 crew. 

23 ‘‘(2) 2017. 

24 ‘‘(c) EXCEPTION.—If as of December 31 of any year 

25 in which subsection (a) is in effect the average price of 


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1 crude petroleum (as determined by the Secretary of En2 ergy in 2007 constant dollars) is less then $40 per barrel, 

3 paragraph (2) of that subsection shall not be operative in 

4 the next succeeding year. 

5 ‘‘(d) MAXIMUM PERCENTAGE.—(1) The maximum 

6 percentage of the fuel utilized by the Department that is 

7 required by this section to be coal-to-liquid fuel, gas-to8 liquid fuel, or both is 50 percent. 

9 ‘‘(2) Nothing in paragraph (1) shall be construed to 

10 limit the percentage of fuel utilized by the Department 

11 that is coal-to-liquid fuel or gas-to-liquid fuel.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tion at the beginning of subchapter II of such chap14 ter is amended by adding at the end the following 

15 new item: 

‘‘2263. Fuel: minimum requirements for utilization of coal-to-liquid or gas-toliquid fuel.’’. 

16 (d) COMMERCIAL AIRCRAFT STUDY.— 

17 (1) IN GENERAL.—The Secretary of Energy, in 

18 consultation with the Administrator of the Federal 

19 Aviation Administration, shall conduct a study on 

20 commercial style aircraft engines and airframes to 

21 determine the quantity of fuel produced using coal22 to-liquid or gas-to-liquid technology that may be 

23 used without compromising health, safety, or the 

24 longevity of the engines and airframes, including an 


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1 analysis of any environmental benefits from using 

2 the fuel. 

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

4 the date of the completion of the study under para5 graph (1), the Secretary of Energy shall submit to 

6 the appropriate committees of Congress a report 

7 that describes— 

8 (A) the results of the study; and 

9 (B) any recommendations of the Secretary 

10 of Energy. 

11 SEC. 206. AVAILABILITY OF CERTAIN AREAS OF THE OUTER 

12 CONTINENTAL SHELF FOR LEASING. 

13 (a) DEFINITIONS.—Section 2 of the Outer Conti14 nental Shelf Lands Act (43 U.S.C. 1331) is amended— 

15 (1) in subsection (a), by inserting before the 

16 semicolon at the end the following: ‘‘or lying within 

17 the United States exclusive economic zone adjacent 

18 to the territories of the United States’’; 

19 (2) by striking the semicolon at the end of each 

20 subsections (a) through (o) and inserting a period; 

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

22 following: 

23 ‘‘(f) AFFECTED STATE; ADJACENT STATE.— 

24 ‘‘(1) IN GENERAL.—The terms ‘affected State’ 

25 and ‘adjacent State’ mean, with respect to any proVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 gram, plan, lease sale, leased tract, or other activity, 

2 proposed, conducted, or approved pursuant to this 

3 Act, any State the laws of which are declared, pur4 suant to section 4(a)(2), to be the law of the United 

5 States for the portion of the outer Continental Shelf 

6 on which the program, plan, lease sale, leased tract, 

7 or activity appertains or is, or is proposed to be, 

8 conducted. 

9 ‘‘(2) STATE.—In this subsection, the term 

10 ‘State’ includes Puerto Rico and other territories of 

11 the United States.’’; 

12 (4) in subsection (p), by striking ‘‘; and’’ at the 

13 end and inserting a period; and 

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

15 ‘‘(r) ADJACENT ZONE.—The term ‘Adjacent Zone’ 

16 means, with respect to any program, plan, lease sale, 

17 leased tract, or other activity, proposed, conducted or ap18 proved pursuant to this Act, the portion of the outer Con19 tinental Shelf for which the laws of a particular adjacent 

20 State are declared pursuant to section 4(a)(2), to be the 

21 law of the United States. 

22 ‘‘(s) COASTLINE.—The term ‘coastline’ has the 

23 meaning given the term ‘coast line’ in section 2 of the Sub24 merged Lands Act (43 U.S.C. 1301). 

25 ‘‘(t) MILE.—The term ‘mile’ means a statute mile. 


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1 ‘‘(u) NEIGHBORING STATE.—The term ‘neighboring 

2 State’ means a coastal State having a common boundary 

3 at the coastline with an adjacent State.’’. 

4 (b) RESERVATION OF LANDS AND RIGHTS.—Section 

5 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 

6 1341) is amended— 

7 (1) by striking SEC. 12 and all that follows 

8 through ‘‘The President’’ and inserting the fol9 lowing: 

10 ‘‘SEC. 12. RESERVATIONS. 

11 ‘‘(a) AUTHORITY OF THE PRESIDENT.— 

12 ‘‘(1) IN GENERAL.—The President’’; 

13 and 

14 (2) in subsection (a), by adding at the end the 

15 following: 

16 ‘‘(2) LENGTH OF WITHDRAWAL.—A withdrawal 

17 by the President may be for a term of not to exceed 

18 10 years. 

19 ‘‘(3) CONSIDERATIONS.—When considering po20 tential uses of the outer Continental Shelf, to the 

21 maximum extent practicable, the President shall ac22 commodate competing interests and potential uses. 

23 ‘‘(4) PRIOR WITHDRAWALS.— 

24 ‘‘(A) BY THE PRESIDENT.—The President 

25 may partially or completely revise or revoke any 


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1 prior withdrawal made by the President under 

2 this section. 

3 ‘‘(B) INITIATED BY A STATE.—The Presi4 dent may not revise or revoke a withdrawal that 

5 was initiated by a petition from a State and ap6 proved by the Secretary under subsection (h).’’; 

7 and 

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

9 ‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN

10 AREAS OF THE OUTER CONTINENTAL SHELF.— 

11 ‘‘(1) PROHIBITION AGAINST LEASING.— 

12 ‘‘(A) UNAVAILABLE FOR LEASING WITH13 OUT STATE REQUEST.—Except as otherwise 

14 provided in this subsection, beginning on the 

15 date of enactment of this subsection, the Sec16 retary shall not offer for leasing for oil and gas, 

17 or natural gas— 

18 ‘‘(i) any area within 50 miles of the 

19 coastline that was withdrawn from disposi20 tion by leasing in the Atlantic OCS Re21 gion, the Pacific OCS Region, or the Gulf 

22 of Mexico OCS Region Eastern Planning 

23 Area, as depicted on the maps referred to 

24 in this subparagraph, under the ‘Memo25 randum on Withdrawal of Certain Areas of 


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1 the United States Outer Continental Shelf 

2 from Leasing Disposition’, 34 Weekly 

3 Comp. Pres. Doc. 1111, dated June 12, 

4 1998; or 

5 ‘‘(ii) any area within 50 miles of the 

6 coastline not withdrawn under that Memo7 randum that is included within the Gulf of 

8 Mexico OCS Region Eastern Planning 

9 Area as indicated on the map entitled ‘Gulf 

10 of Mexico OCS Region State Adjacent 

11 Zones and OCS Planning Areas’ or the 

12 Florida Straits Planning Area as indicated 

13 on the map entitled ‘Atlantic OCS Region 

14 State Adjacent Zones and OCS Planning 

15 Areas’, both of which are dated September 

16 2005 and on file in the Office of the Direc17 tor, National Ocean Resources and Royalty 

18 Service. 

19 ‘‘(B) AREAS BETWEEN 50 AND 100 MILES

20 FROM THE COASTLINE.—Unless an adjacent 

21 State petitions under subsection (h) within 1 

22 year after the date of the enactment of this 

23 subsection for natural gas leasing or by June 

24 30, 2009, for oil and gas leasing, the Secretary 

25 shall offer for leasing— 


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1 ‘‘(i) any area more than 50 miles but 

2 less than 100 miles from the coastline that 

3 was withdrawn from disposition by leasing 

4 in the Atlantic OCS Region, the Pacific 

5 OCS Region, or the Gulf of Mexico OCS 

6 Region Eastern Planning Area, as depicted 

7 on the maps referred to in this subpara8 graph, under the ‘Memorandum on With9 drawal of Certain Areas of the United 

10 States Outer Continental Shelf from Leas11 ing Disposition’, 34 Weekly Comp. Pres. 

12 Doc. 1111, dated June 12, 1998; or 

13 ‘‘(ii) any area more than 50 miles but 

14 less than 100 miles from the coastline not 

15 withdrawn under that Memorandum that 

16 is included within the Gulf of Mexico OCS 

17 Region Eastern Planning Area as indicated 

18 on the map entitled ‘Gulf of Mexico OCS 

19 Region State Adjacent Zones and OCS 

20 Planning Areas’ or within the Florida 

21 Straits Planning Area as indicated on the 

22 map entitled ‘Atlantic OCS Region State 

23 Adjacent Zones and OCS Planning Areas’, 

24 both of which are dated September 2005 

25 and on file in the Office of the Director, 


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1 National Ocean Resources and Royalty 

2 Service. 

3 ‘‘(2) REVOCATION OF WITHDRAWAL.— 

4 ‘‘(A) IN GENERAL.—The ‘Memorandum on 

5 Withdrawal of Certain Areas of the United 

6 States Outer Continental Shelf from Leasing 

7 Disposition’, 34 Weekly Comp. Pres. Doc. 

8 1111, dated June 12, 1998, is revoked and no 

9 longer in effect regarding— 

10 ‘‘(i) any area that is more than 100 

11 miles from the coastline; or 

12 ‘‘(ii) any area that is less than 100 

13 miles from the coastline and is included 

14 within the Gulf of Mexico OCS Region 

15 Central Planning Area as depicted on the 

16 map entitled ‘Gulf of Mexico OCS Region 

17 State Adjacent Zones and OCS Planning 

18 Areas’ dated September 2005 and on file 

19 in the Office of the Director, National 

20 Ocean Resources and Royalty Service. 

21 ‘‘(B) INCLUSION OF CERTAIN AREAS.— 

22 ‘‘(i) IN GENERAL.—The 2002–2007 

23 5-Year Outer Continental Shelf Oil and 

24 Gas Leasing Program shall be modified to 

25 include— 


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1 ‘‘(I) the areas added to the Gulf 

2 of Mexico OCS Region Central Plan3 ning Area by this Act to the extent 

4 that the areas were included within 

5 the original boundaries of proposed 

6 Lease Sale 181; and 

7 ‘‘(II) a sale in such additional 

8 areas, which shall be held not later 

9 than June 30, 2007. 

10 ‘‘(ii) ENVIRONMENTAL IMPACT STATE11 MENT.—The final environmental impact 

12 statement prepared for the area described 

13 in clause (i) for Lease Sale 181 shall be 

14 considered sufficient for all purposes for 

15 each lease sale in which the area is offered 

16 for lease during the 2002–2007 5-Year 

17 Outer Continental Shelf Oil and Gas Leas18 ing Program without need for supplemen19 tation. 

20 ‘‘(iii) TRACTS PARTIALLY ADDED.— 

21 ‘‘(I) IN GENERAL.—Any tract 

22 only partially added to the Gulf of 

23 Mexico OCS Region Central Planning 

24 Area by this Act shall be eligible for 

25 leasing of the part of the tract that is 


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1 included within the Gulf of Mexico 

2 OCS Region Central Planning Area. 

3 ‘‘(II) REMAINDER OF TRACT.— 

4 The remainder of a tract described in 

5 subclause (I) that lies outside of the 

6 Gulf of Mexico OCS Region Central 

7 Planning Area may be developed and 

8 produced by the lessee of the partial 

9 tract using extended reach or similar 

10 drilling from a location on a leased 

11 area. 

12 ‘‘(iv) USE OF TRACTS.—Any area in 

13 the OCS withdrawn from leasing may be 

14 leased, and thereafter developed and pro15 duced by the lessee using extended reach 

16 or similar drilling from a location on a 

17 leased area located in an area available for 

18 leasing. 

19 ‘‘(3) PETITION FOR LEASING.— 

20 ‘‘(A) PETITIONS.— 

21 ‘‘(i) IN GENERAL.—The Governor of a 

22 State, upon concurrence of the legislature 

23 of the State, may submit to the Secretary 

24 a petition requesting that the Secretary 

25 make available any area that is within the 


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1 Adjacent Zone of the State, included under 

2 paragraph (1), and that— 

3 ‘‘(I) is greater than 25 miles 

4 from any point on the coastline of a 

5 neighboring State for the conduct of 

6 offshore leasing, pre-leasing, and re7 lated activities with respect to natural 

8 gas leasing; or 

9 ‘‘(II) is greater than 50 miles 

10 from any point on the coastline of a 

11 neighboring State for the conduct of 

12 offshore leasing, pre-leasing, and re13 lated activities with respect to oil and 

14 gas leasing. 

15 ‘‘(ii) OTHER LEASING.—The adjacent 

16 State may petition for leasing any other 

17 area within the Adjacent Zone of the 

18 State— 

19 ‘‘(I) if leasing is allowed in the 

20 similar area of the Adjacent Zone of 

21 the applicable neighboring State; or 

22 ‘‘(II) if leasing is not allowed, if 

23 the neighboring State, acting through 

24 the Governor of the neighboring 

25 State, expresses the concurrence of 


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1 the neighboring State with the peti2 tion. 

3 ‘‘(iii) SECRETARIAL FINDING.—The 

4 Secretary shall only consider a petition 

5 under clause (ii) after— 

6 ‘‘(I) making a finding that leas7 ing is allowed in the similar area of 

8 the Adjacent Zone of the applicable 

9 neighboring State; or 

10 ‘‘(II) receiving the concurrence of 

11 the neighboring State. 

12 ‘‘(iv) DATE OF RECEIPT.—The date of 

13 receipt by the Secretary of a concurrence 

14 by a neighboring State shall constitute the 

15 date of receipt of the petition for the State 

16 for which the concurrence applies. 

17 ‘‘(v) CONCURRENCES REQUIRED.— 

18 Except for any area described in para19 graph (2)(B)(iv), a petition for leasing any 

20 part of the Alabama Adjacent Zone that is 

21 part of the Gulf of Mexico Eastern Plan22 ning Area, as indicated on the map entitled 

23 ‘Gulf of Mexico OCS Region State Adja24 cent Zones and OCS Planning Areas’ 

25 which is dated September 2005 and on file 


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1 in the Office of the Director, National 

2 Ocean Resources and Royalty Service, 

3 shall require the concurrence of the States 

4 of Alabama and Florida. 

5 ‘‘(B) LIMITATIONS ON LEASING.—In its 

6 petition, a State with an Adjacent Zone that 

7 contains leased tracts may condition new leas8 ing for oil and gas, or natural gas, for tracts 

9 within 25 miles of the coastline by— 

10 ‘‘(i) requiring a net reduction in the 

11 number of production platforms; 

12 ‘‘(ii) requiring a net increase in the 

13 average distance of production platforms 

14 from the coastline; 

15 ‘‘(iii) limiting permanent surface occu16 pancy on new leases to areas that are more 

17 than 10 miles from the coastline; 

18 ‘‘(iv) limiting certain tracts to being 

19 produced from shore or from platforms lo20 cated on other tracts; or 

21 ‘‘(v) other conditions that the adja22 cent State may consider appropriate if the 

23 Secretary does not determine that produc24 tion is made economically or technically 

25 impracticable or otherwise impossible. 


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1 ‘‘(C) ACTION BY SECRETARY.— 

2 ‘‘(i) IN GENERAL.—Not later than 90 

3 days after receipt of a petition of a State 

4 under subparagraph (A), the Secretary 

5 shall approve the petition, unless the Sec6 retary determines that leasing the area 

7 would probably cause serious harm or 

8 damage to the marine resources of the Ad9 jacent Zone of the State. 

10 ‘‘(ii) ENVIRONMENTAL ASSESS11 MENT.—Prior to approving the petition, 

12 the Secretary shall complete an environ13 mental assessment under the National En14 vironmental Policy Act of 1969 (42 U.S.C. 

15 4321 et seq.) that documents the antici16 pated environmental effects of leasing in 

17 the area included within the scope of the 

18 petition. 

19 ‘‘(D) FAILURE TO ACT.—If the Secretary 

20 fails to approve or deny a petition in accordance 

21 with subparagraph (C), the petition shall be 

22 considered to be approved 90 days after the re23 ceipt of the petition. 

24 ‘‘(E) AMENDMENT OF 5-YEAR LEASING

25 PROGRAM.— 


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1 ‘‘(i) IN GENERAL.—Except as pro2 vided in clause (ii), notwithstanding section 

3 18, not later than 180 days after the ap4 proval of a petition under subparagraph 

5 (C) or (D), after the expiration of the time 

6 limits established by paragraph (1)(B), 

7 and not later than 180 days after the en8 actment of this subsection for the areas 

9 made available for leasing under paragraph 

10 (2), the Secretary shall amend the 5-Year 

11 Outer Continental Shelf Oil and Gas Leas12 ing Program (in effect on the date of en13 actment of this subsection) to include 1 or 

14 more lease sales for at least 75 percent of 

15 the associated areas. 

16 ‘‘(ii) EXCEPTION.— 

17 ‘‘(I) IN GENERAL.—The Sec18 retary shall not make the amendment 

19 described in clause (i) if there are, 

20 from the date of approval, expiration 

21 of the time limits, or the date of en22 actment of this subsection, as applica23 ble, less than 1 year remaining in the 

24 5-Year Leasing Program described in 

25 clause (i). 


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1 ‘‘(II) SUBSEQUENT LEASING

2 PROGRAM.—In a case described in 

3 subclause (I), the Secretary shall in4 clude the associated areas within lease 

5 sales under the next 5-Year Outer 

6 Continental Shelf Oil and Gas Leas7 ing Program. 

8 ‘‘(iii) NO FURTHER CONSULTATIONS

9 REQUIRED.—For purposes of amending 

10 the 5-Year Outer Continental Shelf Oil and 

11 Gas Leasing Program in accordance with 

12 this section, further consultations with 

13 States shall not be required. 

14 ‘‘(iv) ENVIRONMENTAL ASSESS15 MENT.—For purposes of this section, an 

16 environmental assessment performed under 

17 the National Environmental Policy Act of 

18 1969 (42 U.S.C. 4321 et seq.) to assess 

19 the effects of approving the petition shall 

20 be sufficient to support the amendment of 

21 the 5-Year Outer Continental Shelf Oil and 

22 Gas Leasing Program. 

23 ‘‘(4) DISPOSITION OF REVENUES.—Revenues 

24 from leases entered into under this subsection shall 

25 be disposed of in accordance with section 105 of the 


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1 Gulf of Mexico Energy Security Act of 2006 (43 

2 U.S.C. 1331 note; Public Law 109–432). 

3 ‘‘(h) OPTION TO PETITION FOR EXTENSION OF

4 WITHDRAWAL FROM LEASING WITHIN CERTAIN AREAS

5 OF OUTER CONTINENTAL SHELF.— 

6 ‘‘(1) PETITIONS.— 

7 ‘‘(A) IN GENERAL.—The Governor of a 

8 State, upon the concurrence of the legislature of 

9 the State, may submit to the Secretary a peti10 tion requesting that the Secretary extend, for a 

11 period of time of not more than 5 years, the 

12 withdrawal from leasing for all or part of any 

13 area within the Adjacent Zone of the State lo14 cated more than 50 miles, but less than 100 

15 miles, from the coastline that is subject to sub16 section (g)(1)(B). 

17 ‘‘(B) LIMITATION ON PETITIONS.—A State 

18 may petition not more than once per calendar 

19 year for any particular area. 

20 ‘‘(C) SEPARATE PETITIONS.—A State shall 

21 submit separate petitions, with separate votes 

22 by the legislature of the State, for oil and gas 

23 leasing and for natural gas leasing. 

24 ‘‘(D) SCOPE OF PETITIONS.—A petition of 

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1 drawn from all leasing and certain areas to be 

2 withdrawn only from 1 type of leasing. 

3 ‘‘(E) ALABAMA ADJACENT ZONE.—A peti4 tion for extending the withdrawal from leasing 

5 of any part of the Alabama Adjacent Zone that 

6 is more than 50 miles, but less than 100 miles, 

7 from the coastline and that is a part of the Gulf 

8 of Mexico OCS Region Eastern Planning Area, 

9 as indicated on the map entitled ‘Gulf of Mexico 

10 OCS Region State Adjacent Zones and OCS 

11 Planning Areas’ which is dated September 2005 

12 and on file in the Office of the Director, Na13 tional Ocean Resources and Royalty Service, 

14 may be made by the State of Alabama or Flor15 ida. 

16 ‘‘(2) ACTION BY SECRETARY.— 

17 ‘‘(A) TIMING.—Not later than 90 days 

18 after receipt of the petition of a State, the Sec19 retary shall approve or deny the petition, taking 

20 into consideration the effect of approving the 

21 petition on marine resources of the Adjacent 

22 Zone of the State. 

23 ‘‘(B) ENVIRONMENTAL ASSESSMENT.—If 

24 the Secretary denies a petition under subpara25 graph (A), the Secretary shall perform an enviVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 ronmental assessment under the National Envi2 ronmental Policy Act of 1969 (42 U.S.C. 4321 

3 et seq.) to assess the effects of that denial. 

4 ‘‘(3) FAILURE TO ACT.—If the Secretary fails 

5 to approve or deny a petition in accordance with 

6 paragraph (2), the petition shall be considered to be 

7 approved 180 days after the date of receipt of the 

8 petition. 

9 ‘‘(i) EFFECT OF OTHER LAWS.— 

10 ‘‘(1) IN GENERAL.—Adoption by any adjacent 

11 State of any constitutional provision, or enactment 

12 of any State law, that has the effect, as determined 

13 by the Secretary, of restricting the Governor or the 

14 legislature, or both, of the State from exercising full 

15 discretion related to subsection (g) or (h) shall for 

16 the duration of the restriction— 

17 ‘‘(A) prohibit any sharing of OCS receipts 

18 (as that term is defined in section 9(a)) under 

19 this Act with the adjacent State, and the coast20 al political subdivisions of the adjacent State; 

21 and 

22 ‘‘(B) prohibit the adjacent State from exer23 cising any authority under subsection (h). 

24 ‘‘(2) TIMING.—The Secretary shall make the 

25 determination of the existence of a restricting conVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 stitutional provision or State statute not later than 

2 30 days after receipt of a petition by any outer Con3 tinental Shelf lessee or coastal State.’’. 

4 (c) CONFORMING AMENDMENT.—Section 102(9)(A) 

5 of the Gulf of Mexico Energy Security Act of 2006 (43 

6 U.S.C. 1331 note; Public Law 109–432) is amended— 

7 (1) in clause (i)— 

8 (A) in subclause (I), by striking ‘‘and’’ at 

9 the end; and 

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

11 ‘‘(III) areas leased under section 

12 12(g) of the Outer Continental Shelf 

13 Lands Act (43 U.S.C. 1341(g)); and’’; 

14 and 

15 (2) in clause (ii)— 

16 (A) in subclause (II), by striking ‘‘and’’ at 

17 the end; 

18 (B) in subclause (III), by striking the pe19 riod at the end and inserting ‘‘; and’’; and 

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

21 ‘‘(IV) areas leased under section 

22 12(g) of the Outer Continental Shelf 

23 Lands Act (43 U.S.C. 1341(g)).’’. 


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1 TITLE III—BUILDINGS AND 

2 MANUFACTURING SECTOR 

3 SEC. 301. ENERGY EFFICIENCY IN FEDERAL BUILDINGS. 

4 (a) ENERGY EFFICIENCY IN FEDERAL BUILDINGS.— 

5 (1) DEFINITIONS.—In this section— 

6 (A) ADMINISTRATOR.—The term ‘‘Admin7 istrator’’ means the Administrator of General 

8 Services. 

9 (B) COMMITTEE.—The term ‘‘Committee’’ 

10 means the Green Building Advisory Committee 

11 established under section 103(a). 

12 (C) DIRECTOR.—The term ‘‘Director’’ 

13 means the individual appointed to the position 

14 established under section 101(a). 

15 (D) FEDERAL FACILITY.— 

16 (i) IN GENERAL.—The term ‘‘Federal 

17 facility’’ means any building or facility the 

18 intended use of which requires the building 

19 or facility to be— 

20 (I) accessible to the public; and 

21 (II) constructed or altered by or 

22 on behalf of the United States. 

23 (ii) EXCLUSIONS.—The term ‘‘Federal 

24 facility’’ does not include a privately-owned 


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1 residential or commercial structure that is 

2 not leased by the Federal Government. 

3 (E) HIGH-PERFORMANCE GREEN BUILD4 ING.—The term ‘‘high-performance green build5 ing’’ means a building that, during its life6 cycle— 

7 (i) reduces energy, water, and mate8 rial resource use; 

9 (ii) integrates systems in the building; 

10 (iii) reduces the environmental and 

11 energy impacts of transportation through 

12 building location and site design that sup13 port a full range of transportation choices 

14 for users of the building; and 

15 (F) LIFE-CYCLE.—The term ‘‘life-cycle’’, 

16 with respect to a high-performance green build17 ing, means all stages of the useful life of the 

18 building (including components, equipment, sys19 tems, and controls of the building) beginning at 

20 conception of a green building project and con21 tinuing through site selection, design, construc22 tion, landscaping, commissioning, operation, 

23 maintenance, renovation, deconstruction or 

24 demolition, removal, and recycling of the green 

25 building. 


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1 (G) LIFE-CYCLE ASSESSMENT.—The term 

2 ‘‘life-cycle assessment’’ means a comprehensive 

3 system approach for measuring the environ4 mental performance of a product or service over 

5 the life of the product or service, beginning at 

6 raw materials acquisition and continuing 

7 through manufacturing, transportation, installa8 tion, use, reuse, and end-of-life waste manage9 ment. 

10 (H) LIFE-CYCLE COSTING.—The term 

11 ‘‘life-cycle costing’’, with respect to a high-per12 formance green building, means a technique of 

13 economic evaluation that— 

14 (i) sums, over a given study period, 

15 the costs of initial investment (less resale 

16 value), replacements, operations (including 

17 energy use), and maintenance and repair 

18 of an investment decision; and 

19 (ii) is expressed— 

20 (I) in present value terms, in the 

21 case of a study period equivalent to 

22 the longest useful life of the building, 

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1 ing in the area in which the building 

2 is to be located; or 

3 (II) in annual value terms, in the 

4 case of any other study period. 

5 (2) OVERSIGHT.— 

6 (A) IN GENERAL.—The Administrator 

7 shall establish within the General Services Ad8 ministration, and appoint an individual to serve 

9 as Director in, a position in the career-reserved 

10 Senior Executive service, to— 

11 (i) establish and manage the Office in 

12 accordance with section 102; and 

13 (ii) carry out other duties as required 

14 under this Act. 

15 (B) COMPENSATION.—The compensation 

16 of the Director shall not exceed the maximum 

17 rate of basic pay for the Senior Executive Serv18 ice under section 5382 of title 5, United States 

19 Code, including any applicable locality-based 

20 comparability payment that may be authorized 

21 under section 5304(h)(2)(C) of that title. 

22 (3) OFFICE OF HIGH-PERFORMANCE GREEN

23 BUILDINGS.— 

24 (A) ESTABLISHMENT.—The Director shall 

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1 tration an Office of High-Performance Green 

2 Buildings. 

3 (B) DUTIES.—The Director shall— 

4 (i) ensure full coordination of high5 performance green building information 

6 and activities within the General Services 

7 Administration and all relevant agencies, 

8 including, at a minimum— 

9 (I) the Environmental Protection 

10 Agency; 

11 (II) the Office of the Federal En12 vironmental Executive; 

13 (III) the Office of Federal Pro14 curement Policy; 

15 (IV) the Department of Energy; 

16 (V) the Department of Health 

17 and Human Services; 

18 (VI) the Department of Defense; 

19 and 

20 (VII) such other Federal agencies 

21 as the Director considers to be appro22 priate; 

23 (ii) establish a senior-level Federal 

24 green building advisory committee, which 


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1 shall provide advice and recommendations 

2 in accordance with section 103; 

3 (iii) identify and biennially reassess 

4 improved or higher rating standards rec5 ommended by the Committee; 

6 (iv) establish a national high-perform7 ance green building clearinghouse in ac8 cordance with section 104, which shall pro9 vide green building information through— 

10 (I) outreach; 

11 (II) education; and 

12 (III) the provision of technical 

13 assistance; 

14 (v) ensure full coordination of re15 search and development information relat16 ing to high-performance green building ini17 tiatives under section 105; 

18 (vi) identify and develop green build19 ing standards that could be used for all 

20 types of Federal facilities in accordance 

21 with section 105; 

22 (vii) establish green practices that can 

23 be used throughout the life of a Federal 

24 facility; 


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1 (viii) review and analyze current Fed2 eral budget practices and life-cycle costing 

3 issues, and make recommendations to Con4 gress, in accordance with section 106; and 

5 (ix) complete and submit the report 

6 described in subsection (c). 

7 (C) REPORT.—Not later than 2 years after 

8 the date of enactment of this Act, and bienni9 ally thereafter, the Director shall submit to 

10 Congress a report that— 

11 (i) describes the status of the green 

12 building initiatives under this Act and 

13 other Federal programs in effect as of the 

14 date of the report, including— 

15 (I) the extent to which the pro16 grams are being carried out in accord17 ance with this Act; 

18 (II) the status of funding re19 quests and appropriations for those 

20 programs; and 

21 (III) the effectiveness of different 

22 programs in reducing the energy con23 sumption of the Federal government; 

24 (ii) identifies within the planning, 

25 budgeting, and construction process all 


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1 types of Federal facility procedures that 

2 inhibit new and existing Federal facilities 

3 from becoming high-performance green 

4 buildings as measured by— 

5 (I) a silver rating, as defined by 

6 the Leadership in Energy and Envi7 ronmental Design Building Rating 

8 System standard established by the 

9 United States Green Building Council 

10 (or an equivalent rating); or 

11 (II) an improved or higher rating 

12 standard, as identified by the Com13 mittee; 

14 (iii) identifies inconsistencies, as re15 ported to the Committee, in Federal law 

16 with respect to product acquisition guide17 lines and high-performance product guide18 lines; 

19 (iv) recommends language for uniform 

20 standards for use by Federal agencies in 

21 environmentally responsible acquisition; 

22 (v) in coordination with the Office of 

23 Management and Budget, reviews the 

24 budget process for capital programs with 

25 respect to alternatives for— 


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1 (I) restructuring of budgets to 

2 require the use of complete energy3 and environmental-cost accounting; 

4 (II) using operations expendi5 tures in budget-related decisions while 

6 simultaneously incorporating produc7 tivity and health measures (as those 

8 measures can be quantified by the Of9 fice, with the assistance of universities 

10 and national laboratories); 

11 (III) permitting Federal agencies 

12 to retain all identified savings accrued 

13 as a result of the use of life-cycle cost14 ing for future high-performance green 

15 building initiatives; and 

16 (IV) identifying short- and long17 term cost savings that accrue from 

18 high-performance green buildings, in19 cluding those relating to health and 

20 productivity; 

21 (vi) identifies green, self-sustaining 

22 technologies to address the operational 

23 needs of Federal facilities in times of na24 tional security emergencies, natural disas25 ters, or other dire emergencies; 


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1 (vii) summarizes and highlights devel2 opment, at the State and local level, of 

3 green building initiatives, including execu4 tive orders, policies, or laws adopted pro5 moting green building (including the status 

6 of implementation of those initiatives); and 

7 (viii) includes, for the 2-year period 

8 covered by the report, recommendations to 

9 address each of the matters, and a plan for 

10 implementation of each recommendation, 

11 described in paragraphs (1) through (6). 

12 (D) IMPLEMENTATION.—The Office shall 

13 carry out each plan for implementation of rec14 ommendations under subsection (c)(7). 

15 (4) GREEN BUILDING ADVISORY COMMITTEE.— 

16 (A) ESTABLISHMENT.—Not later than 180 

17 days after the date of enactment of this Act, 

18 the Director shall establish a committee to be 

19 known as the ‘‘Green Building Advisory Com20 mittee’’. 

21 (B) MEMBERSHIP.—The Committee shall 

22 be composed of representatives of, at a min23 imum— 

24 (i) each agency referred to in section 

25 102(b)(1); and 


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1 (ii) other relevant entities, as deter2 mined by the Director, including at least 1 

3 representative of each of the following: 

4 (I) State and local governmental 

5 green building programs. 

6 (II) Independent green building 

7 associations or councils. 

8 (III) Building experts, including 

9 architects, material suppliers, and 

10 construction contractors. 

11 (IV) Security advisors focusing 

12 on national security needs, natural 

13 disasters, and other dire emergency 

14 situations. 

15 (V) Children and adult environ16 mental health experts. 

17 (C) MEETINGS.—The Director shall estab18 lish a regular schedule of meetings for the Com19 mittee, which shall convene a minimum of 6 

20 times each year. 

21 (D) DUTIES.—The Committee shall pro22 vide advice and expertise for use by the Direc23 tor in carrying out the duties under this Act, 

24 including such recommendations relating to 

25 Federal activities carried out under sections 


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1 104 through 106 as are agreed to by a majority 

2 of the members of the Committee. 

3 (E) FACA EXEMPTION.—The Committee 

4 shall not be subject to the Federal Advisory 

5 Committee Act (5 U.S.C. App.). 

6 (5) INFORMATION CLEARINGHOUSE AND OUT7 REACH.—The Director, in coordination with the 

8 Committee, shall carry out public outreach to inform 

9 individuals and entities of the information and serv10 ices available Government-wide by— 

11 (A) establishing and maintaining a na12 tional high-performance green building clearing13 house, including on the Internet, that— 

14 (i) identifies existing similar efforts 

15 and coordinates activities of common inter16 est; and 

17 (ii) provides information relating to 

18 high-performance green buildings, includ19 ing hyperlinks to Internet sites that de20 scribe the activities, information, and re21 sources of— 

22 (I) the Federal Government; 

23 (II) State and local governments; 


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1 (III) the private sector (including 

2 nongovernmental and nonprofit enti3 ties and organizations); and 

4 (IV) international organizations; 

5 (B) identifying and recommending edu6 cational resources for implementing high-per7 formance green building practices, including se8 curity and emergency benefits and practices; 

9 (C) providing access to technical assistance 

10 on using tools and resources to make more cost11 effective, energy-efficient, health-protective, and 

12 environmentally beneficial decisions for con13 structing high-performance green buildings, 

14 particularly tools available to conduct life-cycle 

15 costing and life-cycle assessment; 

16 (D) providing information on application 

17 processes for certifying a high-performance 

18 green building, including certification and com19 missioning; 

20 (E) providing technical information, mar21 ket research, or other forms of assistance or ad22 vice that would be useful in planning and con23 structing high-performance green buildings; and 

24 (F) using such other methods as are deter25 mined by the Director to be appropriate. 


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1 (6) COORDINATION OF RESEARCH EFFORTS.— 

2 (A) ESTABLISHMENT.—The Director, in 

3 coordination with the Committee, shall— 

4 (i)(I) survey existing research and 

5 studies relating to high-performance green 

6 buildings; and 

7 (II) coordinate activities of common 

8 interest; 

9 (ii) develop and recommend a high10 performance green building research plan 

11 that— 

12 (I) identifies information and re13 search needs, including the relation14 ships between health, occupant pro15 ductivity, and each of; 

16 (II) pollutant emissions from ma17 terials and products in the building; 

18 (III) natural day lighting; 

19 (IV) ventilation choices and tech20 nologies; 

21 (V) heating, cooling, and system 

22 control choices and technologies; 

23 (VI) moisture control and mold; 

24 (VII) maintenance, cleaning, and 

25 pest control activities; 


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1 (VIII) acoustics; and 

2 (IX) other issues relating to the 

3 health, comfort, productivity, and per4 formance of occupants of the building; 

5 and 

6 (iii) promotes the development and 

7 dissemination of high-performance green 

8 building measurement tools that, at a min9 imum, may be used— 

10 (I) to monitor and assess the life11 cycle performance of facilities (includ12 ing demonstration projects) built as 

13 high-performance green buildings; and 

14 (II) to perform life-cycle assess15 ments; 

16 (B) assist the budget and life-cycle costing 

17 functions of the Office under section 106; 

18 (C) study and identify potential benefits of 

19 green buildings relating to energy security, nat20 ural disaster, and emergency needs of the Fed21 eral Government; and 

22 (D) support other research initiatives de23 termined by the Office. 


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1 (7) BUDGET AND LIFE-CYCLE COSTING AND

2 CONTRACTING ESTABLISHMENT.—The Director, in 

3 coordination with the Committee, shall— 

4 (A) identify, review, and analyze current 

5 budget and contracting practices that affect 

6 achievement of high-performance green build7 ings, including the identification of barriers to 

8 green building life-cycle costing and budgetary 

9 issues; 

10 (B) develop guidance and conduct training 

11 sessions with budget specialists and contracting 

12 personnel from Federal agencies and budget ex13 aminers to apply life-cycle cost criteria to actual 

14 projects; 

15 (C) identify tools to aid life-cycle cost deci16 sionmaking; and 

17 (D) explore the feasibility of incorporating 

18 the benefits of green buildings, such as security 

19 benefits, into a cost-budget analysis to aid in 

20 life-cycle costing for budget and decision mak21 ing processes. 

22 (8) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to carry out 

24 subsection (a) $4,000,000 for each of fiscal years 


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1 2008 through 2013, to remain available until ex2 pended. 

3 (b) FEDERAL GREEN BUILDING PERFORMANCE.— 

4 (1) IN GENERAL.—Not later than October 31 of 

5 each of the 2 fiscal years following the fiscal year in 

6 which this Act is enacted, and at such times there7 after as the Comptroller General of the United 

8 States determines to be appropriate, the Comptroller 

9 General of the United States shall, with respect to 

10 the fiscal years that have passed since the preceding 

11 report— 

12 (A) conduct an audit of the implementa13 tion of this Act; and 

14 (B) submit to the Office, the Committee, 

15 the Administrator, and Congress a report de16 scribing the results of the audit. 

17 (2) CONTENTS.—An audit under paragraph (1) 

18 shall include a review, with respect to the period cov19 ered by the report under paragraph (1)(B), of— 

20 (A) budget, life-cycle costing, and con21 tracting issues, using best practices identified 

22 by the Comptroller General of the United 

23 States and heads of other agencies in accord24 ance with paragraph (a)(7); 


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1 (B) the level of coordination among the Of2 fice, the Office of Management and Budget, 

3 and relevant agencies; 

4 (C) the performance of the Office in car5 rying out the implementation plan; 

6 (D) the design stage of high-performance 

7 green building measures; 

8 (E) high-performance building data that 

9 were collected and reported to the Office; and 

10 (F) such other matters as the Comptroller 

11 General of the United States determines to be 

12 appropriate. 

13 (3) CONSULTATION.—The Director shall con14 sult with the Committee to enhance and assist the 

15 implementation of the Environmental Stewardship 

16 Scorecard announced at the White House Summit 

17 on Federal sustainable buildings in January 2006, 

18 to measure the implementation by each Federal 

19 agency of sustainable design and green building ini20 tiatives. 

21 (c) FEDERAL STIMULUS OF COMMERCIAL APPLICA22 TION OF ENERGY TECHNOLOGY .— 

23 (1) DEFINITIONS.—For purposes of this sub24 section: 


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1 (A) DEPARTMENT.—The term ‘‘Depart2 ment’’ means the Department of Energy. 

3 (B) FUND.—The term ‘‘Fund’’ means the 

4 Innovative Energy Technologies Fund for Fed5 eral Buildings established in section 3. 

6 (C) INNOVATIVE ENERGY TECHNOLOGY.— 

7 The term ‘‘innovative energy technology’’ means 

8 a technology, including an advanced energy con9 servation or renewable energy technology, that 

10 was developed, in whole or in part, with the 

11 support of the Department. 

12 (D) INNOVATIVE ENERGY TECHNOLOGY

13 PROJECT.—The term ‘‘innovative energy tech14 nology project’’ means a project that— 

15 (i) results in the commercial applica16 tion of an innovative energy technology; 

17 and 

18 (ii) assists a Federal agency in meet19 ing or exceeding all Federal energy effi20 ciency requirements then in effect, includ21 ing applicable Executive orders such as 

22 Executive Order No. 13423. 

23 (E) SECRETARY.—The term ‘‘Secretary’’ 

24 means the Secretary of Energy. 

25 (2) ESTABLISHMENT OF FUND.— 


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1 (A) IN GENERAL.—Not later than 6 

2 months after the date of enactment of this Act, 

3 the Secretary of Energy shall establish the In4 novative Energy Technologies Fund for Federal 

5 Buildings within the Clean Energy Technology 

6 Fund established in Section 103 of this Act. 

7 The Secretary of Energy shall administer the 

8 Fund to enable Federal agencies to dem9 onstrate innovative energy technologies for ret10 rofit or new construction of Federal buildings 

11 and facilities. 

12 (B) CRITERIA AND GUIDELINES.—Not 

13 later than 6 months after the date of enactment 

14 of this Act, the Secretary shall establish criteria 

15 and guidelines for Federal agencies to borrow 

16 from and pay back to the Fund. 

17 (3) LOANS FROM THE FUND.— 

18 (A) GENERAL PROCEDURE.—Federal agen19 cies may apply to the Secretary for a loan for 

20 financing the demonstration of innovative en21 ergy technology projects, and shall repay the 

22 Fund from savings in energy and other costs 

23 attributable to actions taken as a result of the 

24 demonstration project undertaken with the 

25 loan. 


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1 (B) PURPOSES OF LOAN.—In addition to 

2 financing an innovative energy technology 

3 project, a Federal agency may use the loan 

4 amount to pay the costs of administration and 

5 the development of proposals for subsequent 

6 projects to further develop the technology (in7 cluding data collection and energy surveys), and 

8 to acquire and operate equipment necessary to 

9 monitor and verify associated energy savings. 

10 (C) REPAYMENTS.—A Federal agency 

11 shall repay to the Fund the principal amount of 

12 the loan and fees determined by the Secretary 

13 to cover costs of administering the loan. The re14 payment period shall be 15 years, or less as ap15 propriate to the project. 

16 (4) REPORTS AND AUDITS.— 

17 (A) REPORTS TO THE SECRETARY.—Not 

18 later than 1 year after a Federal agency imple19 ments its first innovative energy technology 

20 project for which a loan is provided under this 

21 Act, and each year thereafter until the date 

22 that final repayment of all loans provided to 

23 that agency under this Act is due, the Federal 

24 agency shall transmit to the Secretary an an25 nual report that— 


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1 (i) states whether projects meet or fail 

2 to meet the energy savings projections for 

3 the projects based on measured savings; 

4 (ii) for each project that fails to meet 

5 the energy savings projections, states the 

6 reasons for failure and describes proposed 

7 remedies; and 

8 (iii) for each project that meets the 

9 energy savings projections, proposes ex10 panded demonstrations of the innovative 

11 energy technology demonstrated with the 

12 loan funds. 

13 (B) AUDITS.—The Secretary may audit 

14 any innovative energy technology project fi15 nanced with a loan from the Fund to assess the 

16 project’s performance. 

17 (C) REPORTS TO CONGRESS.—At the end 

18 of each fiscal year, the Secretary shall transmit 

19 to Congress a report on the operations of the 

20 Fund, including a statement of the total re21 ceipts into the Fund, the total expenditures 

22 from the Fund to each Federal agency, and ex23 amples of project successes and failures in 

24 meeting energy savings projections. 

25 (5) AUTHORIZATION OF APPROPRIATIONS.— 


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1 (A) ESTABLISHMENT OF FUND.—There 

2 are authorized to be appropriated to the Sec3 retary for the establishment of the Fund, 

4 $100,000,000 for each of the fiscal years 2008 

5 through 2017. 

6 (B) OPERATION OF FUND.—There are au7 thorized to be appropriated to the Secretary 

8 from the Fund, for carrying out the loan pro9 gram under this Act, such sums as may be nec10 essary. 

11 SEC. 302. ENERGY EFFICIENCY PUBLIC SCHOOLS. 

12 (a) The Secretary of Energy shall provide grants— 

13 (1) to State educational agencies and local edu14 cational agencies for providing intensive technical as15 sistance for, and assisting the implementation of, the 

16 EnergySmart Schools Program of the Department 

17 of Energy and the Energy Star for K-12 School Dis18 tricts program of the Environmental Protection 

19 Agency; and 

20 (2) to state educational agencies for use in the 

21 development of state-level school energy efficiency 

22 quality plans, in partnership with the department of 

23 energy, including— 

24 (A) standards for school building design, 

25 construction, and renovation; and 


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1 (B) proposals for the systematic improve2 ment (including benchmarks and timelines) of 

3 environmental conditions in and around schools 

4 throughout the State, including— 

5 (i) environmentally preferable pur6 chasing of products for instruction and 

7 maintenance; 

8 (ii) increasing the use of alternative 

9 energy fuels in school buses; and 

10 (iii) maximization of transportation 

11 choices for students, staff, and other mem12 bers of the community. 

13 (b) FEDERAL SHARE.—The Federal share of the cost 

14 of a project or activity carried out using funds from a 

15 grant under this Act shall not exceed 90 percent. 

16 (c) GRANT PRIORITY.—In providing grants under 

17 section 2(1), the Secretary of Energy shall give priority 

18 to projects to provide assistance to school districts that 

19 have a demonstrated need for energy efficiency improve20 ment. 

21 (d) DEFINITION.—For purposes of this Act, the 

22 terms ‘‘State educational agency’’ and ‘‘local educational 

23 agency’’ have the meanings given those terms in section 

24 9101 of the Elementary and Secondary Education Act of 

25 1965 (20 U.S.C. 7801). 


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1 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary of En3 ergy to carry out this Act $10,000,000 for the period en4 compassing fiscal years 2006 through 2011. 

5 SEC. 303. MANUFACTURING PROCESSES AND MATERIALS 

6 ENERGY USE COMMISSION. 

7 Subtitle C of title I of the Energy Policy Act of 2005 

8 (P.L. 109–58; 119 Stat. 620) is amended by adding at 

9 the end the following: 

10 ‘‘SEC. 142. MANUFACTURING PROCESSES AND MATERIALS 

11 ENERGY USE COMMISSION. 

12 ‘‘(a) ESTABLISHMENT.— 

13 ‘‘(1) ESTABLISHMENT.—There is established a 

14 commission to be known as the ‘Appliance Efficiency 

15 Standards Commission’ (referred to in this sub16 section as the ‘Commission’). 

17 ‘‘(2) MEMBERSHIP.— 

18 ‘‘(A) COMPOSITION.—The Commission 

19 shall be composed of 12 members appointed by 

20 the President, of whom— 

21 ‘‘(i) 4 members shall be appointed to 

22 represent energy and manufacturing indus23 tries; 

24 ‘‘(ii) 2 members shall be appointed 

25 from nongovernmental organizations that 


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1 specialize in energy efficiency, environ2 mental protection, or consumer advocacy; 

3 ‘‘(iii) 3 members shall be appointed 

4 from the National Academy of Sciences; 

5 and 

6 ‘‘(iv) 1 member shall be appointed 

7 from each of— 

8 ‘‘(I) the Department of Com9 merce; and 

10 ‘‘(II) the Department of Energy. 

11 ‘‘(B) DATE OF APPOINTMENTS.—The ap12 pointment of a member of the Commission shall 

13 be made not later than 90 days after the date 

14 of enactment of this subsection. 

15 ‘‘(3) TERM; VACANCIES.— 

16 ‘‘(A) TERM.—Subject to clause (ii), the 

17 term of office of a member of the Commission 

18 shall be 3 years. 

19 ‘‘(B) VACANCIES.—A vacancy on the Com20 mission— 

21 ‘‘(i) shall not affect the powers of the 

22 Commission; and 

23 ‘‘(ii) shall be filled in the same man24 ner as the original appointment was made. 


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1 ‘‘(4) INITIAL MEETING.—Not later than 30 

2 days after the date on which all members of the 

3 Commission have been appointed, the Commission 

4 shall hold the initial meeting of the Commission. 

5 ‘‘(5) MEETINGS.—The Commission shall meet 

6 at the call of the Chairperson. 

7 ‘‘(6) QUORUM.—A majority of the members of 

8 the Commission shall constitute a quorum, but a 

9 lesser number of members may hold hearings. 

10 ‘‘(7) CHAIRPERSON AND VICE CHAIRPERSON.— 

11 The Commission shall select a Chairperson and Vice 

12 Chairperson from among the members of the Com13 mission. 

14 ‘‘(b) DUTIES.—The Commission shall— 

15 ‘‘(1) conduct a study on the methods to develop 

16 new manufacturing processes and material that are 

17 able to use diverse energy sources; and 

18 ‘‘(2) submit to Congress a report that describes 

19 the result of the study. 

20 ‘‘(c) POWERS.— 

21 ‘‘(1) HEARINGS.—The Commission may hold 

22 such hearings, meet and act at such times and 

23 places, take such testimony, and receive such evi24 dence as the Commission considers advisable to 

25 carry out this subsection. 


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1 ‘‘(2) INFORMATION FROM FEDERAL AGEN2 CIES.— 

3 ‘‘(A) IN GENERAL.—The Commission may 

4 secure directly from a Federal agency such in5 formation as the Commission considers nec6 essary to carry out this subsection. 

7 ‘‘(B) PROVISION OF INFORMATION.—On 

8 request of the Chairperson of the Commission, 

9 the head of the agency shall provide the infor10 mation to the Commission. 

11 ‘‘(3) POSTAL SERVICES.—The Commission may 

12 use the United States mails in the same manner and 

13 under the same conditions as other agencies of the 

14 Federal Government. 

15 ‘‘(4) GIFTS.—The Commission may accept, use, 

16 and dispose of gifts or donations of services or prop17 erty. 

18 ‘‘(d) COMMISSION PERSONNEL MATTERS.— 

19 ‘‘(1) COMPENSATION OF MEMBERS.— 

20 ‘‘(A) NON-FEDERAL EMPLOYEES.—A 

21 member of the Commission who is not an offi22 cer or employee of the Federal Government 

23 shall be compensated at a rate equal to the 

24 daily equivalent of the annual rate of basic pay 

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1 ule under section 5315 of title 5, United States 

2 Code, for each day (including travel time) dur3 ing which the member is engaged in the per4 formance of the duties of the Commission. 

5 ‘‘(B) FEDERAL EMPLOYEES.—A member 

6 of the Commission who is an officer or em7 ployee of the Federal Government shall serve 

8 without compensation in addition to the com9 pensation received for the services of the mem10 ber as an officer or employee of the Federal 

11 Government. 

12 ‘‘(2) TRAVEL EXPENSES.—A member of the 

13 Commission shall be allowed travel expenses, includ14 ing per diem in lieu of subsistence, at rates author15 ized for an employee of an agency under subchapter 

16 I of chapter 57 of title 5, United States Code, while 

17 away from the home or regular place of business of 

18 the member in the performance of the duties of the 

19 Commission. 

20 ‘‘(3) STAFF.— 

21 ‘‘(A) IN GENERAL.—The Chairperson of 

22 the Commission may, without regard to the civil 

23 service laws (including regulations), appoint 

24 and terminate an executive director and such 

25 other additional personnel as are necessary to 


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1 enable the Commission to perform the duties of 

2 the Commission. 

3 ‘‘(B) CONFIRMATION OF EXECUTIVE DI4 RECTOR.—The employment of an executive di5 rector shall be subject to confirmation by the 

6 Commission. 

7 ‘‘(C) COMPENSATION.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in subparagraph (B), the Chair10 person of the Commission may fix the com11 pensation of the executive director and 

12 other personnel without regard to the pro13 visions of chapter 51 and subchapter III of 

14 chapter 53 of title 5, United States Code, 

15 relating to classification of positions and 

16 General Schedule pay rates. 

17 ‘‘(ii) MAXIMUM RATE OF PAY.—The 

18 rate of pay for the executive director and 

19 other personnel shall not exceed the rate 

20 payable for level V of the Executive Sched21 ule under section 5316 of title 5, United 

22 States Code. 

23 ‘‘(4) DETAIL OF FEDERAL GOVERNMENT EM24 PLOYEES.— 


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1 ‘‘(A) IN GENERAL.—An employee of the 

2 Federal Government may be detailed to the 

3 Commission without reimbursement. 

4 ‘‘(B) CIVIL SERVICE STATUS.—The detail 

5 of the employee shall be without interruption or 

6 loss of civil service status or privilege. 

7 ‘‘(5) PROCUREMENT OF TEMPORARY AND

8 INTERMITTENT SERVICES.—The Chairperson of the 

9 Commission may procure temporary and intermit10 tent services in accordance with section 3109(b) of 

11 title 5, United States Code, at rates for individuals 

12 that do not exceed the daily equivalent of the annual 

13 rate of basic pay prescribed for level V of the Execu14 tive Schedule under section 5316 of that title. 

15 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.— 

16 There are authorized to be appropriated such sums 

17 as are necessary to carry out this subsection, to re18 main available until expended. 

19 ‘‘(e) ADMINISTRATION.—Section 14 of the Federal 

20 Advisory Committee Act (5 U.S.C. App.) shall not apply 

21 to the Commission.’’. 

22 SEC. 304. GREENFIELD STUDY. 

23 (a) DEFINITION.—For the purposes of this section, 

24 the term ‘‘greenfield facility’’ shall mean a new industrial 

25 manufacturing, refining or other industrial facility. 


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1 (b) STUDY.—The Secretary, in coordination with the 

2 Secretary of Commerce and the Administrator of the En3 vironmental Protection Agency, shall conduct a study on 

4 the costs and benefits of locating greenfield facilities near 

5 existing manufacturing or electric generating facilities for 

6 purposes of energy efficiency, including— 

7 (1) an identification of the barriers to locating 

8 greenfield facilities near existing manufacturing or 

9 electric generating facilities; and 

10 (2) the development of a 5-year plan to remove, 

11 to the maximum extent practicable, any barriers 

12 that are the result of an activity, facility or regula13 tion of the Federal government. 

14 TITLE IV—NATIONAL CLIMATE 

15 CHANGE POLICY 

16 SEC. 401. NATIONAL GREENHOUSE GAS EMISSIONS REG17 ISTRY. 

18 Section 1605 of the Energy Policy Act of 1992 (42 

19 U.S.C. 13385) is amended— 

20 (1) by amending the second sentence of sub21 section (a) to read as follows: ‘‘The Secretary shall 

22 annually update and analyze such inventory using 

23 available data, including, beginning in calendar year 

24 2008, information collected as a result of voluntary 

25 reporting under subsection (b). The inventory shall 


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1 identify for calendar year 2008 and thereafter the 

2 amount of emissions reductions attributed to those 

3 reported under subsection (b).’’; 

4 (2) by amending subsection (b)(1) (B) and (C) 

5 to read as follows— 

6 ‘‘(B) annual reductions or avoidance of 

7 greenhouse gas emissions and carbon sequestra8 tion achieved through any measures, including 

9 agricultural activities, co-generation, appliance 

10 efficiency, energy efficiency, forestry activities 

11 that increase carbon sequestration stocks (in12 cluding the use of forest products), fuel switch13 ing, management of crop lands, grazing lands, 

14 grasslands and dry lands, manufacture or use 

15 of vehicles with reduced greenhouse gas emis16 sions , methane recovery, ocean seeding, use of 

17 renewable energy, chlorofluorocarbon capture 

18 and replacement, and power plant heat rate im19 provement’’; 

20 (3) by striking in the first sentence of sub21 section (b)(2) the word ‘‘entities’’ and inserting 

22 ‘‘persons or entities’’ and in the second sentence of 

23 such subsection, by inserting after ‘‘Persons’’ the 

24 words ‘‘or entities’’; 


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1 (4) by inserting in the second sentence of sub2 section (b)(4) the words ‘‘persons or’’ before ‘‘enti3 ty’’; 

4 (5) by adding after subsection (b)(4) the fol5 lowing new paragraphs— 

6 ‘‘(5) RECOGNITION OF VOLUNTARY GREEN7 HOUSE GAS EMISSIONS REDUCTION, AVOIDANCE, OR

8 SEQUESTRATION.—To encourage new and increased 

9 voluntary efforts to reduce, avoid, or sequester emis10 sions of greenhouse gases, the Secretary shall de11 velop and establish a program of giving annual pub12 lic recognition to all reporting persons and entities 

13 demonstrating voluntarily achieved greenhouse gases 

14 reduction, avoidance, or sequestration, pursuant to 

15 the voluntary collections and reporting guidelines 

16 issued under this section. Such recognition shall be 

17 based on the information certified, subject to section 

18 1001 of title 18, United States Code, by such per19 sons or entities for accuracy as provided in para20 graph 2 of this subsection, and shall include such in21 formation reported prior to the enactment of this 

22 paragraph. At a minimum such recognition shall an23 nually be published in the Federal Register. 

24 ‘‘(6) REVIEW AND REVISION OF GUIDELINES.— 


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1 ‘‘(A) IN GENERAL.—Not later than 1 year 

2 after the date of enactment of this subpara3 graph, the Secretary of Energy, acting through 

4 the Administrator of the Energy Information 

5 Administration, shall conduct a review of guide6 lines established under this section regarding 

7 the accuracy and reliability of reports of green8 house gas reductions and related information. 

9 ‘‘(B) CONTENTS.—The review shall include 

10 the consideration of the need for any amend11 ments to such guidelines, including— 

12 ‘‘(i) a random or other verification 

13 process using the authorities available to 

14 the Secretary under other provisions of 

15 law; 

16 ‘‘(ii) a range of reference cases for re17 porting of project-based activities in sec18 tors, including the measures specified in 

19 subparagraph (1)(B) of this subsection, 

20 and the inclusion of benchmark and de21 fault methodologies and best practices for 

22 use as reference cases for eligible projects; 

23 ‘‘(iii) issues, such as comparability, 

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1 porting on an entity-wide basis or on an 

2 activity or project basis; 

3 ‘‘(iv) safeguards to address the possi4 bility of reporting, inadvertently or other5 wise, of some or all of the same greenhouse 

6 gas emissions reductions by more than one 

7 reporting entity or person and to make 

8 corrections where necessary; 

9 ‘‘(v) provisions that encourage entities 

10 or persons to register their certified, by ap11 propriate and credible means, baseline 

12 emissions levels on an annual basis, taking 

13 into consideration all of their reports made 

14 under this section prior to the enactment 

15 of this paragraph; 

16 ‘‘(vi) procedures and criteria for the 

17 review and registration of ownership of all 

18 or part of any reported and verified emis19 sions reductions relative to a reported 

20 baseline emissions level under this section; 

21 and 

22 ‘‘(vii) accounting provisions needed to 

23 allow for changes in registration of owner24 ship of emissions reductions resulting from 


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1 a voluntary private transaction between re2 porting entities or persons. 

3 For the purposes of this paragraph, the term 

4 ‘reductions’ means any and all activities taken 

5 by a reporting entity or person that reduce, 

6 avoid or sequester greenhouse gas emissions, or 

7 sequester greenhouse gases from the atmos8 phere. 

9 ‘‘(C) ECONOMIC ANALYSIS.—The review 

10 should consider the costs and benefits of any 

11 such amendments, the effect of such amend12 ments on participation in this program, includ13 ing by farmers and small businesses, and the 

14 need to avoid creating undue economic advan15 tages or disadvantages for persons or entities in 

16 the private sector. The review should provide, 

17 where appropriate, a range of reasonable op18 tions that are consistent with the voluntary na19 ture of this section and that will help further 

20 the purposes of this section. 

21 ‘‘(D) PUBLIC COMMENT AND SUBMISSION

22 OF REPORT.—The findings of the review shall 

23 be made available in draft form for public com24 ment for at least 45 days, and a report con25 taining the findings of the review shall be subVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 mitted to Congress and the President no later 

2 than one year after date of enactment of this 

3 section. 

4 ‘‘(E) REVISION OF GUIDELINES.—If the 

5 Secretary, after consultation with the Adminis6 trator, finds, based on the study results, that 

7 changes to the program are likely to be bene8 ficial and cost effective in improving the accu9 racy and reliability of reported greenhouse gas 

10 reductions and related information, are con11 sistent with the voluntary nature of this section, 

12 and further the purposes of this section, the 

13 Secretary shall propose and promulgate changes 

14 to program guidelines based with such findings. 

15 In carrying out the provisions of this para16 graph, the Secretary shall consult with the Sec17 retary of Agriculture and the Administrator of 

18 the Small Business Administration to encourage 

19 greater participation by small business and 

20 farmers in addressing greenhouse gas emission 

21 reductions and reporting such reductions. 

22 ‘‘(F) PERIODIC REVIEW AND REVISION OF

23 GUIDELINES.—The Secretary shall thereafter 

24 review and revise these guidelines at least once 

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1 nomic analysis, public review, and revision set 

2 forth in subsections (C) through (E) of this sec3 tion.’’; 

4 (6) in subsection (c), by inserting ‘‘the Sec5 retary of the Department of Agriculture, the Sec6 retary of the Department of Commerce, the Admin7 istrator of the Energy Information Administration, 

8 and’’ before ‘‘the Administrator’’; and 

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

10 ‘‘(d) PUBLIC AWARENESS PROGRAM.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall create 

12 and implement a public awareness program to edu13 cate all persons in the United States of— 

14 ‘‘(A) the direct benefits of engaging in vol15 untary greenhouse gas emissions reduction 

16 measures and having the emissions reductions 

17 certified under this section and available for use 

18 therein; and 

19 ‘‘(B) the ease of use of the forms and pro20 cedures for having emissions reductions cer21 tified under this section. 

22 ‘‘(2) AGRICULTURAL AND SMALL BUSINESS

23 OUTREACH.—The Secretary of Agriculture and the 

24 Administrator of the Small Business Administration 

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1 menting a targeted public awareness program to en2 courage voluntary participation by small businesses 

3 and farmers.’’. 

4 SEC. 402. REPORT ON INDUSTRIAL APPLICATIONS OF CAR5 BON DIOXIDE. 

6 The Secretary shall offer to enter into a contract with 

7 the National Academy of Sciences under which the Na8 tional Academy shall conduct a study of uses (including 

9 industrial applications) for captured carbon dioxide other 

10 than sequestration, enhanced oil recovery or carbon trad11 ing. 

12 SEC. 403. NATIONAL CARBON DIOXIDE STORAGE ASSESS13 MENT. 

14 (a) DEFINITIONS.—In this section: 

15 (1) ASSESSMENT.—The term ‘‘assessment’’ 

16 means the national assessment of geological storage 

17 capacity for carbon dioxide completed under this sec18 tion. 

19 (2) CAPACITY; GEOLOGICAL STORAGE CAPAC20 ITY.—The terms ‘‘capacity’’ and ‘‘geological storage 

21 capacity’’ mean the portion of a storage formation 

22 that can retain carbon dioxide under the parameters 

23 (including physical, geological, and economic param24 eters) established under the methodology developed 

25 under this section. 


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1 (3) ENGINEERED HAZARDS.—The term ‘‘engi2 neered hazards’’ includes the location and comple3 tion history of any well that could affect potential 

4 storage. 

5 (4) RISK.—The term ‘‘risk’’ includes risks 

6 posed by geochemical, geomechanical, 

7 hydrogeological, structural, and engineered hazards. 

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

9 the Secretary of Interior, acting through the Direc10 tor of the United States Geological Survey. 

11 (6) STORAGE FORMATION.—The term ‘‘storage 

12 formation’’ means a deep saline formation, 

13 unmineable coal seam, or oil or gas reservoir capable 

14 of accommodating a volume of industrial carbon di15 oxide. 

16 (b) METHODOLOGY FOR NATIONAL ASSESSMENT OF

17 GEOLOGICAL STORAGE CAPACITY FOR CARBON DIOX18 IDE.— 

19 (1) IN GENERAL.—Not later than 270 days 

20 after the date of enactment of this section, the Sec21 retary shall develop a methodology for conducting a 

22 national assessment of the geological storage capac23 ity for carbon dioxide. 


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1 (2) POTENTIAL STORAGE FORMATIONS.—In de2 veloping the methodology under this section, the 

3 Secretary shall consider— 

4 (A) the geographic extent of all potential 

5 storage formations of the contiguous 48 States; 

6 (B) the capacity of the potential storage 

7 formations; 

8 (C) the ability of the potential storage for9 mations to be injected with carbon dioxide; 

10 (D) an estimate of potential volumes of oil 

11 and gas recoverable by injection and storage of 

12 industrial carbon dioxide in potential storage 

13 formations; 

14 (E) an estimate of the percentage of car15 bon dioxide injected into oil and gas wells that 

16 would be permanently stored when used in en17 hanced oil recovery; 

18 (F) the potential of vertical and horizontal 

19 migration of carbon dioxide from the potential 

20 storage formations; 

21 (G) the ability of monitoring of and data 

22 collection from the potential storage formations; 

23 and 

24 (H) the risk associated with the potential 

25 storage formations. 


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1 (3) COORDINATION.— 

2 (A) FEDERAL COORDINATION.—The Sec3 retary shall coordinate with the Secretary of 

4 Energy and the Administrator of the Environ5 mental Protection Agency on issues of data 

6 sharing, format, development of the method7 ology, and content of the assessment required 

8 under this section to ensure the maximum use9 fulness and success of the assessment. 

10 (B) STATE COORDINATION.—The Sec11 retary shall consult with the State geological 

12 surveys and other relevant entities to ensure, to 

13 the maximum extent practicable, the usefulness 

14 and success of the assessment. 

15 (4) OPPORTUNITY FOR REVIEW AND COM16 MENT.—During the period beginning on the date 

17 that is 270 days after the date of enactment of this 

18 section and ending not more than 60 days, after the 

19 commencement of the assessment, the Secretary 

20 shall provide the heads of stakeholder Federal agen21 cies, the heads of State land management agencies, 

22 industry stakeholders, and the public with an oppor23 tunity to review and comment on the proposed meth24 odology developed under subparagraph (A). 


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1 (5) INDEPENDENT VERIFICATION.—During the 

2 period described in subparagraph (D), the Secretary 

3 shall convene a committee of subject matter experts 

4 composed of representatives of Federal agencies, in5 stitutions of higher education, nongovernmental or6 ganizations, State organizations, industry, and inter7 national geoscience organizations to conduct a re8 view of the methodology for capacity and risk esti9 mation required to carry out this section. 

10 (6) FINAL PUBLICATION.—Not later than 90 

11 days after the period described in subparagraph (D), 

12 the Secretary shall— 

13 (A) publish in the Federal Register a de14 scription of the final methodology to be used for 

15 conducting the national assessment of the geo16 logical storage capacity for carbon dioxide re17 quired under subparagraph (A), taking into ac18 count any comments received under subpara19 graph (D) and the methodology review con20 ducted under subsection (E); and 

21 (B) issue a public report that responds to 

22 the comments received under subparagraph (D) 

23 and the methodology review under subpara24 graph (E). 


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1 (c) COMPLETION OF NATIONAL ASSESSMENT OF GE2 OLOGICAL STORAGE CAPACITY FOR CARBON DIOXIDE.— 

3 (1) IN GENERAL.—Not later than 3 years after 

4 the date of final publication of the methodology, the 

5 Secretary shall complete a national assessment of 

6 geological storage capacity for carbon dioxide using 

7 the methodology under paragraph (2). 

8 (2) DATABASE.— 

9 (A) IN GENERAL.—The Secretary shall es10 tablish a database on the Internet accessible to 

11 the public that provides the results of the as12 sessment required under this section, including 

13 a detailed description of the data collected 

14 under the assessment. 

15 (B) DATA.—The database shall include the 

16 metrics necessary to rank potential storage sites 

17 for capacity and risk, across the United States, 

18 within each State, by formation, and within 

19 each basin. 

20 (C) REPORT.— 

21 (i) IN GENERAL.—Not later than 180 

22 days after the date on which the assess23 ment required under this section is com24 pleted, the Secretary shall submit to the 

25 appropriate committees of Congress and 


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1 the President a report that describes the 

2 findings of the assessment. 

3 (ii) PUBLIC AVAILABILITY.—The Sec4 retary shall make the report required 

5 under this subparagraph available on the 

6 internet. 

7 (d) REGULATORY REFORM FOR CARBON SEQUES8 TRATION COMMISSION.— 

9 (1) ESTABLISHMENT.— 

10 (A) IN GENERAL.—There is established a 

11 commission to be known as the ‘‘Regulatory Re12 form for Carbon Sequestration Commission’’ 

13 (referred to in this subsection as the ‘‘Commis14 sion’’. 

15 (B) MEMBERSHIP.—The Commission shall 

16 be composed of 15 members, to be appointed by 

17 the President, of whom— 

18 (i) 1 member shall be a representative 

19 of the Department of Energy; 

20 (ii) 1 member shall be a representa21 tive of the Department of Commerce; 

22 (iii) 1 member shall be a representa23 tive of the Environmental Protection Agen24 cy; and 

25 (iv) the remaining members shall be— 


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1 (I) representatives from the man2 ufacturing industry; 

3 (II) representatives from the 

4 electric utility industry; 

5 (III) representatives from non6 governmental organizations that focus 

7 on— 

8 (aa) energy efficiency; and 

9 (bb) environmental protec10 tion; or 

11 (IV) representatives from the in12 vestment banking community. 

13 (C) DATE OF APPOINTMENTS.—The ap14 pointment of a member of the Commission shall 

15 be made not later than 90 days after the date 

16 of enactment of this subsection. 

17 (D) TERM; VACANCIES.— 

18 (i) TERM.—Subject to clause (ii), the 

19 term of office of a member of the Commis20 sion shall be 3 years. 

21 (ii) VACANCIES.—A vacancy on the 

22 Commission— 

23 (I) shall not affect the powers of 

24 the Commission; and 


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1 (II) shall be filled in the same 

2 manner as the original appointment 

3 was made. 

4 (E) INITIAL MEETING.—Not later than 30 

5 days after the date on which all members of the 

6 Commission have been appointed, the Commis7 sion shall hold the initial meeting of the Com8 mission. 

9 (F) MEETINGS.—The Commission shall 

10 meet at the call of the Chairperson. 

11 (G) QUORUM.—A majority of the members 

12 of the Commission shall constitute a quorum, 

13 but a lesser number of members may hold hear14 ings. 

15 (H) CHAIRPERSON AND VICE CHAIR16 PERSON.—The Commission shall select a Chair17 person and Vice Chairperson from among the 

18 members of the Commission. 

19 (2) DUTIES.—The Commission shall— 

20 (A) STUDY.—The Commission shall con21 duct a study to identify any regulatory barriers 

22 to siting new manufacturing facilities, power 

23 plants, and other necessary infrastructure in 

24 close proximity to the potential sites ranked 

25 under subsection (c)(2)(B). 


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1 (B) RECOMMENDATIONS.—The Commis2 sion shall develop recommendations to remove 

3 the barriers identified under paragraph (A). 

4 (C) REPORT.—Not later than 1 year after 

5 the date of release of the Final Publication 

6 under paragraph (b)(6) of this section, the 

7 Commission shall submit to the President and 

8 Congress a report that contains— 

9 (i) a detailed statement of the find10 ings and conclusions of the Commission; 

11 and 

12 (ii) the recommendations of the Com13 mission for removing the barriers identified 

14 under subparagraph (A). 

15 SEC. 404. LIABILITY OF FULL CARBON STORAGE FACILI16 TIES AND DEPLETED OIL FIELDS. 

17 On determination by the Governor of a State that a 

18 carbon facility of the State or an oil field in that State 

19 that used enhanced oil recovery practices that the facility 

20 is full, or that the oil field is depleted, the Governor shall 

21 transfer liability for the facility or oil field to the Federal 

22 Government, in accordance with such procedures and re23 quirements as the Secretary may establish, by regulation. 


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1 SEC. 405. FUNDING. 

2 (a) IN GENERAL.—There is authorized to be appro3 priated to carry out this title $80,000,000 for each of the 

4 fiscal years 2008 through 2015. 

5 (b) EFFECT OF LIMITATION ON APPROPRIATIONS.— 

6 If, in any fiscal year, the amount appropriated to carry 

7 out this title is less than an amount equal to 75 percent 

8 of the amount authorized in to be appropriated for the 

9 fiscal year under subsection (a), each carbon capture10 ready or carbon capture and sequestration retrofit require11 ment of this Act shall terminate. 

12 TITLE V—STUDIES, ENERGY DAY, 

13 AND REESTABLISHMENT OF 

14 THE OFFICE OF TECHNO15 LOGICAL ASSESSMENT 

16 Subtitle A—Studies 

17 SEC. 501. STUDY OF THE REPLACEMENT OF HVACR EQUIP18 MENT. 

19 (a) STUDY REQUIRED.—The Secretary of Energy 

20 shall convene a study group including the Director of the 

21 Office of Management and Budget (OMB), the Deputy 

22 Secretary of Housing and Urban Development (HUD), 

23 representatives of the energy community, representatives 

24 of the housing community, and such other individuals as 

25 the Secretary of Energy, Director of OMB, and Deputy 

26 Secretary of HUD may designate. The Secretary of EnVerDate Aug 31 2005 21:58 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00184 Fmt 6652 Sfmt 6201 E:\BILLS\S1602.IS S1602

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1 ergy, Director of OMB, and Deputy Secretary of HUD, 

2 in consultation with the study group, shall evaluate the 

3 impact of the replacement of residential HVACR equip4 ment—that does not meet current minimum efficiency re5 quirements as stated in the National Appliance Energy 

6 Conservation Act of 1987—at the time of sale of residen7 tial homes. 

8 (b) REPORT REQUIRED.—Not later than 6 months 

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

10 Energy, Director of OMB, and Director of HUD shall 

11 submit a report regarding the findings of the study group 

12 to the Committee on Energy and Commerce in the House 

13 of Representatives and the Committee on Energy and 

14 Natural Resources of the Senate. 

15 SEC. 502. STUDY ON FUEL ECONOMY STANDARDS FOR 

16 HEAVY TRUCKS. 

17 (a) Within 2 years of enactment of this Act, The Na18 tional Science Foundation shall conduct a study to— 

19 (1) determine the fuel economy effects on heavy 

20 trucks as a result of compliance with Title II of the 

21 Clean Air Act; and 

22 (2) assess the ability of different technologies 

23 for increased fuel economy of heavy trucks while ad24 hering to existing regulations established under Title 

25 II of the Clean Air Act. 


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1 (b) Within 6 months of completing the study in sec2 tion (a), the National Academies shall report to Congress 

3 regarding— 

4 (1) the technological feasibility to comply with 

5 fuel economy standards for heavy trucks; and 

6 (2) the potential fuel savings due to fuel econ7 omy standards on heavy trucks. 

8 SEC. 503. STUDY OF THE USE OF SYNTHETIC FUEL IN COM9 MERCIAL AIRCRAFT. 

10 (a) Within 1 year of enactment of this section, the 

11 Secretary of Energy in coordination with the Federal 

12 Aviation Administrator, shall conduct a study on the use 

13 of synthetic fuels in commercial aircraft. 

14 (b) Within 1 year of completing the study in section 

15 (a), the Secretary shall submit a report to the appropriate 

16 Congressional Committees regarding— 

17 (1) the effects of synthetic fuels on any effect 

18 on— 

19 (A) the aircraft engines; 

20 (B) the overall performance of the aircraft; 

21 and 

22 (C) the health and safety of— 

23 (i) the aircrew; 

24 (ii) the maintenance crew; and 

25 (iii) passengers; and 


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1 (2) the reduction in petroleum imports due to 

2 the use of synthetic fuels in commercial aircraft. 

3 SEC. 504. STUDY OF INFRASTRUCTURE NEEDS FOR SIGNIFI4 CANT USE OF RENEWABLE FUELS. 

5 (a) Within 2 years of enactment of this Act, the Sec6 retary of Energy, in coordination with the Secretaries of 

7 Transportation, Commerce and Agriculture, and the Na8 tional Academies of Science, shall conduct a study to— 

9 (1) identify future infrastructure needs for an 

10 increase in the Renewable Fuels Standard in Section 

11 1501 of the Energy Policy Act of 2005 to 36 billion 

12 gallons by 2022; and 

13 (2) the impact of the Renewable Fuels Stand14 ard in Section 1501 of the Energy Policy Act of 

15 2005 on the price of animal feed and fertilizer at— 

16 (A) its current level; and 

17 (B) an expanded standard of 36 billion 

18 gallons by 2022. 

19 (b) Within 1 year of completing the study in section 

20 (a), the Secretary shall submit to Congress a report of 

21 the study’s findings. 

22 SEC. 505. STUDY ON A STRATEGIC NATURAL GAS RESERVE. 

23 (a) Within 1 year of enactment of this Act, the Sec24 retary of Energy shall conduct a study to— 


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1 (1) determine the necessity of establishing a 

2 strategic natural gas reserve similar to the Strategic 

3 Petroleum Reserve; 

4 (2) assess the ability of a Strategic Natural Gas 

5 Reserve to be built in four different quadrants of the 

6 continental United States; and 

7 (3) assess the amount of royalty-in-kind gas 

8 necessary to fill a Strategic Natural Gas Reserve. 

9 (b) Within 1 year of completing the study in section 

10 (a), the Secretary shall submit to Congress a report of 

11 the study’s findings. 

12 Subtitle B—Energy Education 

13 SEC. 511. ENERGY DAY. 

14 (a) PURPOSE.—The purpose of this section is to raise 

15 public awareness of energy issues, including— 

16 (1) the origins of energy; 

17 (2) areas relating to energy in which the United 

18 States is vulnerable; and 

19 (3) the basis of petroleum prices. 

20 (b) DESIGNATION.—The President shall— 

21 (1) designate an appropriate day as ‘‘Energy 

22 Day’’; and 

23 (2) each year call upon the people of the United 

24 States to observe the day with appropriate cere25 monies and activities in schools and communities. 


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1 SEC. 512. ENERGY EFFICIENT EDUCATION PROGRAMS. 

2 (a) IN GENERAL.—The Secretary shall carry out an 

3 education program to increase public awareness of meas4 ures that consumers can take to increase energy efficiency. 

5 (b) DOE WEBSITE.—In carrying out subsection (a), 

6 the Secretary shall improve the quality and quantity of 

7 information, and ease of access to that information, that 

8 the public can access on the website of the Department 

9 of Energy, including educational materials developed 

10 under subsection (a). 

11 Subtitle C—Office of Technological 

12 Assessment 

13 SEC. 521. REESTABLISHMENT OF THE OFFICE OF TECHNO14 LOGICAL ASSESSMENT. 

15 (a) SHORT TITLE AMENDMENT.—The first section of 

16 the Technology Assessment Act of 1972 (2 U.S.C. 471 

17 note) is amended by striking ‘‘Technology Assessment Act 

18 of 1972’’ and inserting the ‘‘Office of Technology Assess19 ment Reestablishment Act of 2007’’. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

21 12(a) of the Office of Technology Assessment Reestablish22 ment Act of 2007 (as so renamed by section 1 of this Act) 

23 (2 U.S.C. 481(a)) is amended by striking ‘‘$5,000,000 in 

24 the aggregate for the two fiscal years ending June 30, 

25 1973, and June 30, 1974, and thereafter such sums as 


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1 may be necessary’’ and inserting ‘‘$25,000,000 for each 

2 of the fiscal years 2008 through 2013’’. 

3 (c) ESTABLISHMENT OF THE OFFICE OF TECH4 NOLOGY ASSESSMENT.—Section 3(c) of the Office of 

5 Technology Assessment Reestablishment Act of 2007 

6 (U.S.C. 471) is amended by— 

7 (1) striking ‘‘and’’ at the end of paragraph (7); 

8 (2) striking ‘‘.’’ at the end of paragraph (8), 

9 and inserting ‘‘;’’; and 

10 (3) adding after paragraph (8) the following 

11 language: 

12 ‘‘(9) make assessments relating to the uses and 

13 application of technology to address current national 

14 science and technology policy issues; and 

15 ‘‘(10) assess and analyze foreign science and 

16 technologies that have the capability of contributing 

17 to solving energy security related issues through in18 corporation of foreign science and technologies into 

19 the technology portfolio of the United States.’’. 

20 SEC. 522. AUTHORIZATION OF APPROPRIATIONS. 

21 There are authorized to be appropriated such sums 

22 that are necessary to carry out this title. 

Æ 


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