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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1599 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1599

  To amend the National Energy Conservation Policy Act to provide for 
       energy-related regulatory reform, 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 amend the National Energy Conservation Policy Act to provide for 
       energy-related regulatory reform, and for other purposes.

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

SECTION 1. PROCESS COORDINATION AND RULES OF PROCEDURE.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Nuclear Regulatory Commission.
            (3) Federal energy authorization.--
                    (A) In general.--The term ``Federal energy 
                authorization'' means any authorization required under 
                Federal law (including regulations), regardless of 
                whether the law is administered by a Federal or State 
                administrative agency or official, with respect to the 
                siting, construction, expansion, or operation of an 
                energy facility, including--
                            (i) a coal-fired electric generating plant;
                            (ii) a nuclear power electric generating 
                        plant;
                            (iii) a natural gas-fired electric 
                        generating plant;
                            (iv) a waste-to-energy facility;
                            (v) a geothermal electric generating 
                        facility;
                            (vi) a wind or solar electric generating 
                        facility;
                            (vii) a petroleum refinery;
                            (viii) a biorefinery;
                            (ix) a biogas conversion unit;
                            (x) a shale-oil production site; or
                            (xi) an oil or gas exploration and 
                        production lease.
                    (B) Inclusions.--The term ``Federal energy 
                authorization'' includes any permit, special use 
                authorization, certification, opinion, or other 
                approval required under Federal law (including 
                regulations) with respect to the siting, construction, 
                expansion, or operation of an energy facility referred 
                to in subparagraph (A).
    (b) Designation as Lead Agency.--
            (1) In general.--Except as provided in paragraph (2), the 
        Environmental Protection Agency shall act as the lead agency 
        for the purposes of coordinating all Federal energy 
        authorizations and related environmental reviews.
            (2) Exception.--In the case of a nuclear power electric 
        generating facility, the Nuclear Regulatory Commission shall 
        act as the lead agency for purposes of coordinating all Federal 
        nuclear energy authorizations.
            (3) Other agencies.--Each Federal or State agency or 
        official required to provide a Federal energy authorization 
        shall cooperate with the Administrator or the Chairperson, as 
        applicable, including by complying with any applicable deadline 
        relating to the Federal energy authorization established by the 
        Administrator or Chairperson under subsection (c).
    (c) Schedule.--
            (1) Authority of administrator.--The Administrator shall 
        establish a schedule for all Federal energy authorizations as 
        the Administrator determines to be appropriate--
                    (A) to ensure expeditious completion of all 
                proceedings relating to Federal energy authorizations; 
                and
                    (B) to accommodate any applicable related schedules 
                established by Federal law (including regulations).
            (2) Authority of chairperson.--The Chairperson shall 
        collaborate with the Administrator to establish an appropriate 
        schedule for all environmental authorizations required with 
        respect to facilities described in subsection (b)(2) that--
                    (A) takes into consideration the longer lead time 
                required by the permitting process for nuclear power 
                electric generating facilities; and
                    (B) allows for simultaneous environmental and 
                security reviews of potential sites to provide for 
                joint authorization of the sites by the Administrator 
                and the Chairperson.
            (3) Failure to meet schedule.--If a Federal or State 
        administrative agency or official fails to complete a 
        proceeding for any approval required for a Federal energy 
        authorization in accordance with the schedule established under 
        paragraph (1) or (2), any affected applicant for the Federal 
        energy authorization may seek judicial review of the failure 
        under subsection (e).
    (d) Consolidated Record.--
            (1) In general.--Except as provided in paragraph (2), the 
        Administrator, in cooperation with Federal and State 
        administrative agencies and officials, shall maintain a 
        complete consolidated record of all decisions made and all 
        actions carried out by the Administrator or a Federal or State 
        administrative agency or officer with respect to any Federal 
        energy authorization.
            (2) Exception.--The Chairperson, in cooperation with the 
        Administrator and other Federal and State administrative 
        agencies and officials, shall maintain a complete consolidated 
        record of all decisions made and all actions carried out by the 
        Commissioner or a Federal or State administrative agency or 
        officer with respect to any Federal authorization of a nuclear 
        power electric generating facility.
            (3) Treatment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the records under paragraphs (1) and (2) shall 
                serve as the record for a decision or action for 
                purposes of judicial review of the decision or action 
                under subsection (e).
                    (B) Exception.--If the United States Court of 
                Appeals for the District of Columbia determines that a 
                record under paragraph (1) or (2) contains insufficient 
                information, the court may remand the proceeding to the 
                Administrator for development of the record.
    (e) Judicial Review.--
            (1) In general.--The United States Court of Appeals for the 
        District of Columbia shall have original and exclusive 
        jurisdiction over any civil action for the review of--
                    (A) an order or action by a Federal or State 
                administrative agency or official relating to a Federal 
                energy authorization; or
                    (B) an alleged failure to act by a Federal or State 
                administrative agency or official with respect to a 
                Federal energy authorization.
            (2) Remand.--
                    (A) In general.--The court shall remand a 
                proceeding to the applicable agency or official in any 
                case in which the court determines under paragraph (1) 
                that--
                            (i)(I) an order or action described in 
                        paragraph (1)(A) is inconsistent with the 
                        Federal law applicable to the Federal energy 
                        authorization;
                            (II) a failure to act described in 
                        paragraph (1)(B) has occurred; or
                            (III) a Federal or State administrative 
                        agency or official failed to meet an applicable 
                        deadline under subsection (c) with respect to a 
                        Federal energy authorization; and
                            (ii) the order, action, or failure to act 
                        would prevent the siting, construction, 
                        expansion, or operation of an energy facility 
                        referred to in subsection (a)(2)(A).
                    (B) Schedule.--On remand of an order, action, or 
                failure to act under subparagraph (A), the court shall 
                establish a reasonable schedule and deadline for the 
                agency or official to act with respect to the remand.
            (3) Action by lead agency.--
                    (A) In general.--Except as provided in subparagraph 
                (B), for any civil action brought under this 
                subsection, the Administrator shall promptly file with 
                the court the consolidated record compiled by the 
                Administrator pursuant to subsection (d)(1).
                    (B) Exception.--For any civil action brought under 
                this subsection with respect to a nuclear power 
                electric generating facility, the Chairperson shall 
                promptly file with the court the consolidated record 
                compiled by the Chairperson pursuant to subsection 
                (d)(2).
            (4) Expedited consideration.--The Court shall provide 
        expedited consideration of any civil action brought under this 
        subsection.
            (5) Attorney's fees.--
                    (A) In general.--Except as provided in subparagraph 
                (B), in any action challenging a Federal energy 
                authorization that has been granted, reasonable 
                attorney's fees and other expenses of the litigation 
                shall be awarded to the prevailing party.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                any action seeking a remedy for--
                            (i) denial of a Federal energy 
                        authorization; or
                            (ii) failure to act on an application for a 
                        Federal energy authorization.

SEC. 2. ENERGY SECURITY AND REGULATORY REFORM.

    (a) Energy-Related Regulatory Reform.--Title V of the National 
Energy Conservation Policy Act (42 U.S.C. 8241 et seq.) is amended by 
adding at the end the following:

               ``PART 5--ENERGY-RELATED REGULATORY REFORM

``SEC. 571. DEFINITIONS.

    ``In this part:
            ``(1) Advisory committee.--The term `advisory committee' 
        means an advisory committee established under section 572(a).
            ``(2) Applicable agency.--The term `applicable agency' 
        means any Federal department or agency that, during the 10-year 
        period ending on the date on which an advisory committee is 
        established, promulgated a major rule.
            ``(3) Benefit.--The term `benefit', with respect to a rule, 
        means any reasonably identifiable, significant, and favorable 
        effect (whether quantifiable or unquantifiable), including a 
        social, health, safety, environmental, economic, energy, or 
        distributional effect, that is expected to result, directly or 
        indirectly, from the implementation of, or compliance with, the 
        rule.
            ``(4) Cost.--The term `cost', with respect to a rule, means 
        any reasonably identifiable and significant adverse effect 
        (whether quantifiable or unquantifiable), including a social, 
        health, safety, environmental, economic, energy, or 
        distributional effect, that is expected to result, directly or 
        indirectly, from the implementation of, or compliance with, the 
        rule.
            ``(5) Energy rule.--The term `energy rule' means a major 
        rule that has a direct impact on the production, distribution, 
        or consumption of energy, as determined by the Secretary of 
        Energy.
            ``(6) Flexible regulatory option.--
                    ``(A) In general.--The term `flexible regulatory 
                option' means an option at a point in the regulatory 
                process that provides flexibility to any person subject 
                to an applicable rule with respect to complying with 
                the rule.
                    ``(B) Inclusion.--The term `flexible regulatory 
                option' includes any option described in subparagraph 
                (A) that uses--
                            ``(i) a market-based mechanism;
                            ``(ii) an outcome-oriented, performance-
                        based standard; or
                            ``(iii) any other option that promotes 
                        flexibility, as determined by the head of the 
                        applicable agency.
            ``(7) Major rule.--The term `major rule' means a rule or 
        group of closely related rules--
                    ``(A) the reasonably quantifiable increased direct 
                and indirect costs of which are likely to have a gross 
                annual effect on the United States economy of at least 
                $100,000,000, or that has a significant impact on a 
                sector of the economy, as determined by--
                            ``(i) the head of the agency proposing the 
                        rule; or
                            ``(ii) the President (or a designee); or
                    ``(B) that is otherwise designated as a major rule 
                by the head of the agency proposing the rule or the 
                President (or a designee), based on a determination 
                that the rule is likely to result in--
                            ``(i) a substantial increase in costs for--
                                    ``(I) consumers;
                                    ``(II) an industrial sector;
                                    ``(III) nonprofit organizations;
                                    ``(IV) any Federal, State, or local 
                                governmental agency; or
                                    ``(V) a geographical region;
                            ``(ii) a significant adverse effect on--
                                    ``(I) competition, employment, 
                                investment, productivity, innovation, 
                                health, safety, or the environment; or
                                    ``(II) the ability of enterprises 
                                with principal places of business in 
                                the United States to compete in 
                                domestic or international markets;
                            ``(iii) a serious inconsistency or 
                        interference with an action carried out or 
                        planned to be carried out by another Federal 
                        agency;
                            ``(iv) the material alteration of the 
                        budgetary impact of--
                                    ``(I) entitlements, grants, user 
                                fees, or loan programs; or
                                    ``(II) the rights and obligations 
                                of recipients of such a program; or
                            ``(v) disproportionate costs to a class of 
                        regulated persons, including relatively severe 
                        economic consequences for that class.
            ``(8) Rule.--
                    ``(A) In general.--The term `rule' has the meaning 
                given the term in section 551 of title 5, United States 
                Code.
                    ``(B) Inclusion.--The term `rule' includes any 
                statement of general applicability that alters or 
                creates a right or obligation of a person not employed 
                by the applicable regulatory agency.
                    ``(C) Exclusions.--The term `rule' does not 
                include--
                            ``(i) a rule of particular applicability 
                        that approves or prescribes--
                                    ``(I) future rates, wages, prices, 
                                services, corporate or financial 
                                structures, reorganizations, mergers, 
                                acquisitions, or accounting practices; 
                                or
                                    ``(II) any disclosure relating to 
                                an item described in subclause (I);
                            ``(ii) a rule relating to monetary policy 
                        or to the safety or soundness of an institution 
                        (including any affiliate, branch, agency, 
                        commercial lending company, or representative 
                        office of the institution (within the meaning 
                        of the International Banking Act of 1956 (12 
                        U.S.C. 1841 et seq.)) that is--
                                    ``(I) a federally-insured 
                                depository institution or any affiliate 
                                of such an institution (as defined in 
                                section 2(k) of the Bank Holding 
                                Company Act of 1956 (12 U.S.C. 
                                1841(k));
                                    ``(II) a credit union;
                                    ``(III) a Federal home loan bank;
                                    ``(IV) a government-sponsored 
                                housing enterprise;
                                    ``(V) a farm credit institution; or
                                    ``(VI) a foreign bank that operates 
                                in the United States; or
                            ``(iii) a rule relating to--
                                    ``(I) the payment system; or
                                    ``(II) the protection of--
                                            ``(aa) deposit insurance 
                                        funds; or
                                            ``(bb) the farm credit 
                                        insurance fund.

``SEC. 572. ADVISORY COMMITTEES FOR ENERGY RULES.

    ``(a) Establishment.--Not later than 90 days after the date of 
enactment of this part, and every 5 years thereafter, the head of each 
applicable agency shall establish an advisory committee to review all 
energy rules promulgated by the applicable agency during the 10-
calendar-year period ending on the date on which the advisory committee 
is established.
    ``(b) Membership.--
            ``(1) In general.--The head of an applicable agency shall 
        appoint not more than 15 members to serve on an advisory 
        committee.
            ``(2) Requirement.--In appointing members to serve on an 
        advisory committee under paragraph (1), the head of the 
        applicable agency shall ensure that the membership of the 
        advisory committee reflects a balanced cross-section of public 
        and private parties affected by energy rules issued by the 
        applicable agency, including--
                    ``(A) small businesses;
                    ``(B) units of State and local government; and
                    ``(C) public interest groups.
            ``(3) Prohibition on federal government employment.--A 
        member of an advisory committee appointed under paragraph (1) 
        shall not be an employee of the applicable agency for which the 
        advisory committee is established.
    ``(c) Term; Vacancies.--
            ``(1) Term.--A member shall be appointed for the life of an 
        advisory committee.
            ``(2) Vacancies.--A vacancy on an advisory committee--
                    ``(A) shall not affect the powers of the advisory 
                committee; and
                    ``(B) shall be filled in the same manner as the 
                original appointment was made.
    ``(d) Chairperson; Panels.--The head of an applicable agency--
            ``(1) shall select a Chairperson from among the members of 
        an advisory committee; and
            ``(2) may establish such panels as the head determines to 
        be necessary to assist an advisory committee in carrying out 
        duties of the advisory committee.
    ``(e) Duties.--
            ``(1) In general.--An advisory committee shall review all 
        energy rules promulgated by the applicable agency for which the 
        advisory committee is established during the 10-calendar-year 
        period ending on the date on which the advisory committee is 
        established, in accordance with section 573.
            ``(2) Public participation.--An advisory committee shall 
        solicit public comment with respect to energy rules reviewed by 
        the advisory committee through appropriate means, including--
                    ``(A) hearings;
                    ``(B) written comments;
                    ``(C) public meetings; and
                    ``(D) electronic mail.
    ``(f) Travel Expenses.--A member of an advisory committee shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for an employee of an agency under subchapter I of 
chapter 57 of title 5, United States Code, while away from the home or 
regular place of business of the member in the performance of the 
duties of the advisory committee.
    ``(g) Termination.--An advisory committee shall terminate on the 
date that is 5 years after the date on which the advisory committee is 
established.

``SEC. 573. REVIEW OF ENERGY RULES.

    ``(a) List.--
            ``(1) In general.--An advisory committee shall develop a 
        list describing each energy rule promulgated during the 
        preceding 10-year period by the applicable agency for which the 
        advisory committee is established that, as determined by the 
        advisory committee--
                    ``(A) should be reviewed by the head of the 
                applicable agency; and
                    ``(B) reasonably could be subject to such a review 
                during the 5-calendar-year period beginning on the date 
                on which the energy rule is included on the list.
            ``(2) Factors for consideration.--In developing a list 
        under paragraph (1), an advisory committee shall take into 
        consideration--
                    ``(A) the cost of an energy rule with respect to 
                energy production or energy efficiency of any 
                individual or entity subject to the energy rule;
                    ``(B) the extent to which an energy rule could be 
                revised to substantially increase net benefits of the 
                energy rule, including through flexible regulatory 
                options;
                    ``(C) the relative importance of an energy rule, as 
                compared to other energy rules considered for inclusion 
                on the list; and
                    ``(D) the discretion of the applicable agency under 
                an applicable authorizing law or regulation to modify 
                or repeal the energy rule.
            ``(3) Submission.--Not later than 1 year after the date on 
        which an advisory committee is established and annually 
        thereafter, the advisory committee shall submit to the head of 
        the applicable agency for which the advisory committee is 
        established the list developed under paragraph (1), with each 
        energy rule represented on the list in descending order of 
        importance, in accordance with the priority assigned to review 
        of the energy rule by the advisory committee.
            ``(4) Action by applicable agency.--As soon as practicable 
        after receipt of a list under paragraph (3), the head of an 
        applicable agency shall--
                    ``(A) publish the list in the Federal Register; and
                    ``(B) submit to Congress a copy of the list.
    ``(b) Schedules for Review.--
            ``(1) Preliminary schedule.--
                    ``(A) In general.--Not later than 60 days after the 
                date of receipt of a list under subsection (a)(3), the 
                head of an applicable agency shall develop and publish 
                in the Federal Register a preliminary schedule for 
                review by the applicable agency of the energy rules 
                included on the list, including an explanation for each 
                modification of the list by the applicable agency.
                    ``(B) Notice and comment.--The head of an 
                applicable agency shall provide notice and an 
                opportunity for public comment on a preliminary 
                schedule for a period of not less than 60 days after 
                the date of publication of the preliminary schedule 
                under subparagraph (A).
            ``(2) Final schedule.--
                    ``(A) In general.--Not later than 60 days after the 
                date of expiration of the applicable comment period 
                under paragraph (1)(B), the head of the applicable 
                agency shall develop and publish in the Federal 
                Register a final schedule for review of the energy 
                rules by the applicable agency.
                    ``(B) Contents.--
                            ``(i) In general.--A final schedule under 
                        subparagraph (A) shall include a deadline by 
                        which the applicable agency shall review each 
                        energy rule included on the list.
                            ``(ii) Requirement.--A deadline described 
                        in clause (i) shall be not later than 5 years 
                        after the date of publication of the final 
                        schedule.
            ``(3) Requirement.--In developing a preliminary or final 
        schedule under this subsection, the head of an applicable 
        agency--
                    ``(A) shall defer, to the maximum extent 
                practicable, to the recommendations of the advisory 
                committee; but
                    ``(B) may modify the list of the advisory 
                committee, taking into consideration--
                            ``(i) the factors described in subsection 
                        (a)(2); and
                            ``(ii) any limitation on resources or 
                        authority of the applicable agency.
    ``(c) Review.--
            ``(1) Required publications.--For each energy rule included 
        on the final schedule of an applicable agency under subsection 
        (b)(2), the head of the applicable agency shall publish in the 
        Federal Register--
                    ``(A) not later than the date that is 2 years 
                before the deadline applicable to the energy rule under 
                the final schedule, a notice that solicits public 
                comment regarding whether the energy rule should be 
                continued in effect, modified, or repealed;
                    ``(B) not later than the date that is 1 year before 
                the deadline applicable to the energy rule under the 
                final schedule, a notice that--
                            ``(i) addresses public comments received as 
                        a result of the notice under subparagraph (A);
                            ``(ii) contains a preliminary analysis by 
                        the applicable agency relating to the energy 
                        rule;
                            ``(iii) contains a preliminary 
                        determination of the applicable agency 
                        regarding whether the energy rule should be 
                        continued in effect, modified, or repealed; and
                            ``(iv) solicits public comment on that 
                        preliminary determination; and
                    ``(C) not later than the date that is 60 days 
                before the deadline applicable to the energy rule under 
                the final schedule, a final notice relating to the 
                energy rule that--
                            ``(i) addresses public comments received as 
                        a result of the notice under subparagraph (B);
                            ``(ii) contains--
                                    ``(I) a determination of the 
                                applicable agency regarding whether to 
                                continue in effect, modify, or repeal 
                                the energy rule; and
                                    ``(II) an explanation of the 
                                determination; and
                            ``(iii) if the applicable agency determines 
                        to modify or repeal the energy rule, a notice 
                        of proposed rulemaking under section 553 of 
                        title 5, United States Code, as applicable.
            ``(2) Determinations.--
                    ``(A) In general.--Not later than the deadline 
                applicable to an energy rule under the final schedule 
                under subsection (b)(2), the head of the applicable 
                agency shall make a determination--
                            ``(i) to continue the energy rule in 
                        effect;
                            ``(ii) to modify the energy rule; or
                            ``(iii) to repeal the energy rule.
                    ``(B) Continuing in effect.--A determination by the 
                head of an applicable agency under subparagraph (A)(i) 
                to continue an energy rule in effect--
                            ``(i) shall be published in the Federal 
                        Register; and
                            ``(ii) shall be considered to be a final 
                        agency action effective beginning on the date 
                        that is 60 days after the date of publication 
                        of the determination.
                    ``(C) Modification or repeal.--On a determination 
                by the head of an applicable agency to modify or repeal 
                an energy rule under clause (ii) or (iii) of 
                subparagraph (A), the applicable agency shall complete 
                final agency action with respect to the modification or 
                repeal by not later than 2 years after the deadline 
                applicable to the energy rule under the final schedule 
                under subsection (b)(2).
    ``(d) Judicial Review.--
            ``(1) In general.--No preliminary or final schedule under 
        this section shall be subject to judicial review.
            ``(2) Determination to continue in effect.--
                    ``(A) Definition of reasonable alternative.--
                            ``(i) In general.--In this paragraph, the 
                        term `reasonable alternative', with respect to 
                        an option at a point in the regulatory process, 
                        means an option that--
                                    ``(I) would achieve the purpose of 
                                the applicable rule; and
                                    ``(II) the head of the applicable 
                                Federal agency has the authority to 
                                elect.
                            ``(ii) Inclusion.--The term `reasonable 
                        alternative' includes a flexible regulatory 
                        option.
                    ``(B) Action by court.--A court of competent 
                jurisdiction may remand a determination to continue an 
                energy rule in effect under subsection (c)(2)(B) only 
                on clear and convincing evidence that a reasonable 
                alternative was available to the energy rule.
            ``(3) Failure to act.--A failure of the head of an 
        applicable agency to carry out an action required under this 
        section shall be subject to judicial review only as provided in 
        section 706(1) of title 5, United States Code.
    ``(e) Effect of Section.--
            ``(1) In general.--Nothing in this section limits the 
        discretion of an applicable agency, on making a determination 
        described in clause (ii) or (iii) of subsection (c)(2)(A), to 
        elect not to modify or repeal the applicable energy rule.
            ``(2) Treatment.--An election of an applicable agency 
        described in paragraph (1) shall be considered to be a final 
        agency action for purposes of judicial review.

``SEC. 574. PROSPECTIVE CONSIDERATION OF ENERGY RULES.

    ``(a) Determination.--
            ``(1) In general.--In promulgating any rule, the head of an 
        applicable agency shall determine whether the rule is an energy 
        rule.
            ``(2) Treatment.--The head of an applicable agency may 
        determine under paragraph (1) that a set of related rules 
        proposed to be promulgated by the applicable agency shall be 
        considered to be an energy rule.
    ``(b) Regulatory Impact Analysis.--
            ``(1) In general.--In promulgating an energy rule, the head 
        of an applicable agency shall prepare--
                    ``(A) by not later than the date that is 60 days 
                before the date of publication of notice of the 
                proposed rulemaking, a preliminary regulatory impact 
                analysis relating to the energy rule; and
                    ``(B) a final regulatory impact analysis relating 
                to the energy rule, which shall be submitted together 
                with the final energy rule by not later than the date 
                that is 30 days before the date of publication of the 
                final energy rule.
            ``(2) Contents.--A preliminary or final regulator impact 
        analysis relating to an energy rule under paragraph (1) shall 
        contain--
                    ``(A) a description of the potential benefits of 
                the energy rule, including a description of--
                            ``(i) any beneficial effects that cannot be 
                        quantified in monetary terms; and
                            ``(ii) an identification of individuals and 
                        entities likely to receive the benefits;
                    ``(B) an explanation of the necessity, legal 
                authority, and reasonableness of the energy rule 
                together with a description of the condition that the 
                energy rule is intended to address;
                    ``(C) a description of the potential costs of the 
                energy rule, including a description of--
                            ``(i) any costs that cannot be quantified 
                        in monetary terms; and
                            ``(ii) an identification of the individuals 
                        and entities likely to bear the costs;
                    ``(D)(i) an analysis of any alternative approach, 
                including market-based mechanisms, that could 
                substantially achieve the regulatory goal of the energy 
                rule at a lower cost; and
                    ``(ii) an explanation of the reasons why the 
                alternative approach was not adopted, together with a 
                demonstration that the energy rule provides the least-
                costly approach with respect to the regulatory goal;
                    ``(E)(i) an analysis of the benefits and costs of 
                the energy rule to the national energy supply and 
                national energy security; and
                    ``(ii) an explanation in any case in which the 
                energy rule will cause undue harm to the energy 
                stability of any region;
                    ``(F) a statement that, as applicable--
                            ``(i) the energy rule does not conflict 
                        with, or duplicate, any other rule; or
                            ``(ii) describes the reasons why such a 
                        conflict or duplication exists; and
                    ``(G) a statement that describes whether the energy 
                rule will require--
                            ``(i) any onsite inspection; or
                            ``(ii) any individual or entity--
                                    ``(I) to maintain records that will 
                                be subject to inspection; or
                                    ``(II) to obtain any license, 
                                permit, or other certification, 
                                including a description of any 
                                associated fees or fines.
            ``(3) Combination with flexibility analysis.--An energy 
        rule regulatory impact analysis under paragraph (1) may be 
        prepared together with the regulatory flexibility analysis 
        relating to the energy rule under sections 603 and 604 of title 
        5, United States Code.
    ``(c) Review of Regulatory Impact Analyses.--
            ``(1) In general.--The head of an applicable agency shall 
        review, and prepare comments regarding--
                    ``(A) each notice of proposed rulemaking relating 
                to an energy rule of the applicable agency;
                    ``(B) each preliminary and final regulatory impact 
                analysis relating to an energy rule of the applicable 
                agency under this section; and
                    ``(C) each final energy rule of the applicable 
                agency.
            ``(2) Consultation.--On receipt of a request of a head of 
        an applicable agency, any officer or employee of another 
        applicable agency shall consult with the head regarding a 
        review under paragraph (1).
            ``(3) Requirement.--The head of an applicable agency shall 
        not promulgate an energy rule until the date on which the final 
        regulatory impact analysis relating to the energy rule is 
        published in the Federal Register.
            ``(4) Review of other applicable agencies.--
                    ``(A) In general.--On receipt of a request of a 
                head of an applicable agency, another applicable 
                agency--
                            ``(i) shall permit the head to review, and 
                        prepare comments regarding--
                                    ``(I) a notice of proposed 
                                rulemaking relating to an energy rule 
                                of the applicable agency; or
                                    ``(II) a preliminary or final 
                                regulatory impact analysis relating to 
                                an energy rule of the applicable agency 
                                under this section; and
                            ``(ii) shall not publish the notice of 
                        proposed rulemaking or preliminary or final 
                        regulatory impact analysis until the earlier 
                        of--
                                    ``(I) the date on which--
                                            ``(aa) the head completes 
                                        the review; and
                                            ``(bb) the applicable 
                                        agency submits to the head a 
                                        response to any comments of the 
                                        head and includes in the 
                                        comments of the applicable 
                                        agency the response, in 
                                        accordance with subparagraph 
                                        (B)(ii); and
                                    ``(II) the expiration of the 
                                deadline described in subparagraph 
                                (B)(i).
                    ``(B) Deadlines.--
                            ``(i) Review and comment by head.--A head 
                        of an applicable agency shall complete a review 
                        of a notice of proposed rulemaking or 
                        preliminary or final regulatory impact analysis 
                        of another applicable agency under subparagraph 
                        (A) by not later than 90 days after the date on 
                        which the head submits a request for the 
                        review.
                            ``(ii) Response by applicable agency.--An 
                        applicable agency shall submit to the head of 
                        another applicable agency that conducted a 
                        review and submitted comments regarding an 
                        energy rule under subparagraph (A) a response 
                        to those comments by not later than 90 days 
                        after the date on which the comments are 
                        received.
    ``(d) Plain Language Requirement.--The head of an applicable agency 
shall ensure, to the maximum extent practicable, that each energy rule 
and each regulatory impact analysis relating to an energy rule--
            ``(1) is written in plain language; and
            ``(2) provides adequate notice of the requirements of the 
        rule to affected individuals and entities.
    ``(e) Nonapplicability to Certain Rules and Agencies.--
            ``(1) Definition of emergency situation.--In this 
        subsection, the term `emergency situation' means a situation 
        that--
                    ``(A) is immediately impending and extraordinary in 
                nature; or
                    ``(B) demands attention due to a condition, 
                circumstance, or practice that, if no action is taken, 
                would be reasonably expected to cause--
                            ``(i) death, serious illness, or severe 
                        injury to an individual; or
                            ``(ii) substantial danger to private 
                        property or the environment.
            ``(2) Nonapplicability.--This section shall not apply to--
                    ``(A) a major rule promulgated in response to an 
                emergency situation, if a report describing the major 
                rule and the emergency situation is submitted to the 
                head of each affected applicable agency as soon as 
                practicable after promulgation of the major rule;
                    ``(B) a major rule proposed or promulgated in 
                connection with the implementation of monetary policy 
                or to ensure the safety and soundness of--
                            ``(i) a federally-insured depository 
                        institution or an affiliate of such an 
                        institution;
                            ``(ii) a credit union; or
                            ``(iii) a government-sponsored housing 
                        enterprise regulated by the Office of Federal 
                        Housing Enterprise Oversight;
                    ``(C) an action by an applicable agency that the 
                head of the applicable agency certifies is limited to 
                interpreting, implementing, or administering the 
                internal revenue laws of the United States, including 
                any regulation proposed or issued in connection with 
                ensuring the collection of taxes from a subsidiary of a 
                foreign company doing business in the United States; or
                    ``(D) a major rule proposed or promulgated pursuant 
                to section 553 of title 5, United States Code, in 
                connection with imposing a trade sanction against any 
                country that engages in illegal trade activities 
                against the United States that are injurious to United 
                States technology, jobs, pensions, or general economic 
                well-being.''.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Director of the Office of Management and Budget shall 
submit to Congress a report that contains an analysis of--
            (1) rulemaking procedures of Federal departments and 
        agencies; and
            (2) the impact of those procedures on--
                    (A) the public; and
                    (B) the regulatory process.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply only to final rules of Federal departments and agencies the 
rulemaking process for which begins after the date of enactment of this 
Act.
    (d) Other Policies and Goals.--
            (1) Declaration of policy.--Section 101 of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4331) is amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by inserting after subsection (b) the 
                following:
    ``(c) Energy Security.--Congress recognizes that, because the 
production and consumption of energy has a profound impact on the 
environment, and the availability of affordable energy resources is 
essential to continued national security and economic security of the 
United States, it is the policy of the United States to ensure that--
            ``(1) each proposed Federal action should be analyzed with 
        respect to the impact of the proposed Federal action on the 
        energy security of the United States; and
            ``(2) an analysis under paragraph (1) should be taken into 
        consideration in developing Federal plans, rules, programs, and 
        actions.''.
            (2) Reports.--Section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
        amended--
                    (A) by redesignating clauses (iii) through (v) as 
                clauses (iv) through (vi), respectively; and
                    (B) by inserting after clause (ii) the following:
                            ``(iii) the impact on the energy security 
                        of the United States in terms of the effects to 
                        the production, distribution, and consumption 
                        of energy of the proposal or Federal action;''.
                                 <all>
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