II 

109TH CONGRESS 

2D SESSION S. 4106 

To provide for research into the development of energy-efficient technologies 

and to foster the introduction of energy-efficient technologies into the 

marketplace, with the goal of reducing United States oil imports. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2006 

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

to the Committee on Energy and Natural Resources 

A BILL 

To provide for research into the development of energyefficient technologies and to foster the introduction of 

energy-efficient technologies into the marketplace, with 

the goal of reducing United States oil imports. 

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. 

4 This Act may be cited as the ‘‘National Energy Effi5 ciency Development Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) the welfare and security of the United 

2 States require that adequate provision be made for 

3 activities relating to the development of energy-effi4 cient and renewable energy technologies; and 

5 (2) those activities should be the responsibility 

6 of, and should be directed by, an independent estab7 lishment exercising control over activities relating to 

8 the development and promotion of energy-efficient 

9 technologies sponsored by the United States. 

10 SEC. 3. PURPOSE. 

11 The purpose of this Act is to establish the National 

12 Energy Efficiency Development Administration— 

13 (1) to develop technologies to increase energy 

14 efficiency; 

15 (2) to reduce the demand for energy; 

16 (3) to develop technologies to produce energy 

17 from renewable sources; and 

18 (4) to harness and facilitate the ingenuity of 

19 the ongoing research and development of new energy 

20 technology occurring throughout the United States. 

21 SEC. 4. DEFINITIONS. 

22 In this Act: 

23 (1) ADMINISTRATION.—The term ‘‘Administra24 tion’’ means the National Energy Efficiency Devel25 opment Administration established by section 5(a). 


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1 (2) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the head of the Administration ap3 pointed under section 5(c)(1). 

4 (3) ADVISORY COMMITTEE.—The term ‘‘Advi5 sory Committee’’ means the Policy Advisory Com6 mittee established by section 7(a)(1). 

7 (4) ENERGY-EFFICIENT TECHNOLOGY ACTIV8 ITY.— 

9 (A) IN GENERAL.—The term ‘‘energy-effi10 cient technology activity’’ means an activity 

11 that improves the energy efficiency of any sec12 tor of the economy, including the transpor13 tation, building design, electrical generation, ap14 pliance, and power transmission sectors. 

15 (B) INCLUSION.—The term ‘‘energy-effi16 cient technology activity’’ includes an activity 

17 that produces energy from a sustainable bio18 mass, wind, small-scale hydroelectric, solar, geo19 thermal, or other renewable source. 

20 SEC. 5. NATIONAL ENERGY EFFICIENCY DEVELOPMENT AD21 MINISTRATION. 

22 (a) ESTABLISHMENT.—There is established, as an 

23 independent agency, the National Energy Efficiency De24 velopment Administration. 


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1 (b) MISSION.—The mission of the Administration 

2 shall be to reduce United States imports of oil by— 

3 (1) 5 percent by 2008; 

4 (2) 20 percent by 2011; and 

5 (3) 50 percent by 2015. 

6 (c) ADMINISTRATOR; DEPUTY ADMINISTRATOR.— 

7 (1) ADMINISTRATOR.— 

8 (A) APPOINTMENT.— 

9 (i) IN GENERAL.—The Administration 

10 shall be headed by an Administrator, who 

11 shall be appointed by the President, by and 

12 with the advice and consent of the Senate. 

13 (ii) BASIS OF APPOINTMENT.—In ap14 pointing an individual to serve as Adminis15 trator, the President— 

16 (I) shall consider— 

17 (aa) the professional quali18 fications of the individual; 

19 (bb) the scientific or profes20 sional background of the indi21 vidual; and 

22 (cc) the length of experience 

23 of the individual in positions of 

24 management or energy research 

25 and development; and 


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1 (II) shall not consider the polit2 ical affiliation of the individual. 

3 (B) TERM OF OFFICE.— 

4 (i) IN GENERAL.—Subject to clause 

5 (ii), the term of office of an Administrator 

6 shall be 6 years. 

7 (ii) REMOVAL.— 

8 (I) REMOVAL BY PRESIDENT.— 

9 The President may remove an Admin10 istrator from the Administration 

11 based on just cause, as determined by 

12 the President. 

13 (II) COMMUNICATION OF

14 CAUSE.—In removing an Adminis15 trator from the Administration, the 

16 President shall communicate to Con17 gress each reason for removal. 

18 (C) PAY.—Section 5313 of title 5, United 

19 States Code, is amended by adding at the end 

20 the following: 

21 ‘‘Administrator, National Energy Efficiency Develop22 ment Administration.’’. 

23 (D) AUTHORITY OF ADMINISTRATOR.— 

24 (i) IN GENERAL.—The Administrator 

25 shall be the final authority for carrying out 


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1 all functions, powers, and duties of the Ad2 ministration relating to— 

3 (I) the appointment and employ4 ment of all officers and employees of 

5 the Administration (other than Presi6 dential and political appointees); 

7 (II) the acquisition and mainte8 nance of property, services, and equip9 ment of the Administration; 

10 (III) the activities of the Admin11 istration; 

12 (IV) the promulgation of regula13 tions to carry out the functions of the 

14 Administration; and 

15 (V) the publishing of regulations, 

16 rules, orders, circulars, bulletins, and 

17 other official publications of the Ad18 ministration. 

19 (ii) LIMITATION ON RULEMAKING AU20 THORITY.—The Administrator shall not 

21 make any modifications to energy-effi22 ciency standards or related standards in 

23 effect on the date of enactment of this Act 

24 that would result in a projected net reduc25 tion of energy efficiency. 


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1 (iii) ORGANIZATION OF ADMINISTRA2 TION.— 

3 (I) IN GENERAL.—Subject to 

4 subclause (II), the Administrator may 

5 establish, alter, consolidate, or dis6 continue organizational units or com7 ponents within the Administration as 

8 the Administrator determines to be 

9 necessary. 

10 (II) LIMITATION OF AUTHOR11 ITY.—The Administrator shall not— 

12 (aa) abolish any organiza13 tional unit or component estab14 lished by this Act; or 

15 (bb) transfer any function 

16 vested by this Act in any organi17 zational unit or component. 

18 (E) DUTIES OF ADMINISTRATOR.— 

19 (i) IN GENERAL.—The Administrator 

20 shall— 

21 (I) plan, direct, and conduct en22 ergy-efficient technology activities; 

23 (II) provide for the widest appro24 priate dissemination of information 

25 concerning the activities of the AdVerDate Aug 31 2005 21:56 Dec 14, 2006 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4106.IS S4106

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1 ministration and the results of those 

2 activities; 

3 (III) improve existing energy-effi4 cient technologies or develop new en5 ergy-efficient technologies; 

6 (IV) identify mechanisms to in7 troduce energy-efficient technologies 

8 into the marketplace; and 

9 (V) conduct studies of— 

10 (aa) the potential benefits 

11 gained, such as environmental 

12 protection, increasing energy 

13 independence, and reducing costs 

14 to consumers; and 

15 (bb) the costs of and bar16 riers to the development and use 

17 of energy-efficient technologies. 

18 (ii) OBJECTIVES.—The energy-effi19 cient technology activities of the United 

20 States carried out from the Administrator 

21 or carried out with financial assistance by 

22 the Administrator shall be conducted so as 

23 to contribute significantly to 1 or both of 

24 the following objectives: 


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1 (I) Expansion of knowledge 

2 about energy-efficient technologies 

3 and the use of those technologies. 

4 (II) The most effective use of the 

5 scientific resources of the United 

6 States, with close cooperation among 

7 all interested agencies of the United 

8 States so as to avoid duplication of ef9 fort, facilities, and equipment. 

10 (2) DEPUTY ADMINISTRATOR.— 

11 (A) APPOINTMENT.—There shall be in the 

12 Administration a Deputy Administrator, who 

13 shall be appointed by the President, by and 

14 with the advice and consent of the Senate. 

15 (B) BASIS OF APPOINTMENT.—In appoint16 ing a Deputy Administrator, the President— 

17 (i) shall consider— 

18 (I) the professional qualifications 

19 of the individual; 

20 (II) the scientific or professional 

21 background of the individual; and 

22 (III) the length of experience of 

23 the individual in positions of manage24 ment or research and development; 

25 and 


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1 (ii) shall not consider the political af2 filiation of the individual. 

3 (C) TERM OF OFFICE.— 

4 (i) IN GENERAL.—Subject to clause 

5 (ii), the term of office of a Deputy Admin6 istrator shall be 6 years. 

7 (ii) REMOVAL.— 

8 (I) REMOVAL BY PRESIDENT.— 

9 The President may remove a Deputy 

10 Administrator from the Administra11 tion based on just cause, as deter12 mined by the President. 

13 (II) COMMUNICATION OF

14 CAUSE.—In removing a Deputy Ad15 ministrator from the Administration, 

16 the President shall communicate to 

17 Congress each reason for removal. 

18 (D) PAY.—Section 5314 of title 5, United 

19 States Code, is amended by adding at the end 

20 the following: 

21 ‘‘Deputy Administrator, National Energy Efficiency De22 velopment Administration.’’. 

23 (E) DUTIES.—The Deputy Administrator 

24 shall— 


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1 (i) supervise the project development 

2 and engineering activities of the Adminis3 tration; 

4 (ii) exercise such other powers and 

5 perform such duties as the Administrator 

6 may prescribe; and 

7 (iii) act for, and exercise the powers 

8 of, the Administrator during the absence 

9 or disability of the Administrator. 

10 (d) PERSONNEL PLAN.—Not later than 180 days 

11 after the date of enactment of this Act, the Administrator 

12 shall submit to Congress a personnel plan for the Adminis13 tration that— 

14 (1) specifies the initial number and qualifica15 tions of employees needed for the Administration; 

16 (2) describes the functions and General Service 

17 classification and pay rates of the initial employees; 

18 and 

19 (3) specifies how the Administrator will adhere 

20 to or deviate from the civil service system. 

21 (e) TRANSFER OF FUNCTIONS.— 

22 (1) DEFINITION OF FUNCTION.—In this sub23 section, the term ‘‘function’’ means any duty, obliga24 tion, power, authority, responsibility, right, privilege, 

25 activity, or program. 


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1 (2) TRANSFER OF FUNCTIONS.— 

2 (A) IN GENERAL.—Not later than 1 year 

3 after the date of enactment of this Act, there 

4 shall be transferred to the Administrator— 

5 (i) all functions exercised by the As6 sistant Secretary for Efficiency and Re7 newable Energy as of the date of enact8 ment of this Act; and 

9 (ii) any authority to promulgate regu10 lations relating to fuel efficiency exercised 

11 by the Secretary of Transportation as of 

12 the date of enactment of this Act. 

13 (B) INCLUSIONS.—Functions transferred 

14 under subparagraph (A) include all real and 

15 personal property, personnel funds, and records 

16 of the Office of Energy Efficiency and Renew17 able Energy of the Department of Energy. 

18 (C) TRANSITION PLAN.—Not later than 

19 180 days after the date of enactment of this 

20 Act, the President shall submit to Congress a 

21 transition plan to transfer functions of the Of22 fice of Energy Efficiency and Renewable En23 ergy of the Department of Energy in accord24 ance with this Act. 

25 (3) PRESIDENTIAL TRANSFERS.— 


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1 (A) IN GENERAL.—Not later than 4 years 

2 after the date of enactment of this Act, the 

3 President (in consultation with Congress and 

4 the Administrator) may transfer to the Admin5 istrator— 

6 (i) any function of any other depart7 ment or agency of the United States, or of 

8 any officer or organizational entity of any 

9 department or agency, that relates pri10 marily to the duties of the Administrator 

11 under this Act; and 

12 (ii) any records, property, personnel, 

13 and funds that are necessary to carry out 

14 that function. 

15 (B) REPORTS.—The President shall sub16 mit to Congress a report that describes the na17 ture and effect of any transfer made under sub18 paragraph (A). 

19 (4) ABOLISHMENT OF OFFICE.—On completion 

20 of the transfer of the functions described in para21 graph (2), the Office of Energy Efficiency and Re22 newable Energy of the Department of Energy is 

23 abolished. 

24 SEC. 6. ADMINISTRATIVE POWERS. 

25 The Administrator shall— 


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1 (1) appoint and fix the compensation of such 

2 officers and employees as are necessary to carry out 

3 the functions of the Administration; 

4 (2) establish the entrance grade for scientific 

5 personnel without previous service in the Federal 

6 Government at a level up to 2 grades higher than 

7 the grade provided for such personnel in the General 

8 Schedule (within the meaning of section 5104 of 

9 title 5, United States Code) and fix the compensa10 tion of the personnel accordingly, as the Adminis11 trator considers necessary to recruit specially quali12 fied scientific, environmental, and industry-related 

13 expertise; 

14 (3) acquire, construct, improve, repair, operate, 

15 and maintain such laboratories, research and testing 

16 sites and facilities, and such other real and personal 

17 property or interests in real and personal property, 

18 as the Administrator determines to be necessary for 

19 the performance of the functions of the Administra20 tion; 

21 (4) enter into and perform such contracts, 

22 leases, cooperative agreements, or other transactions 

23 as are necessary in the performance of the duties of 

24 the Administrator with any— 


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1 (A) agency or instrumentality of the 

2 United States; 

3 (B) State, Territory, or possession; 

4 (C) political subdivision of any State, Ter5 ritory, or possession; or 

6 (D) person, firm, association, corporation, 

7 or educational institution; 

8 (5)(A) with the consent of Federal and other 

9 agencies, with or without reimbursement, use the 

10 services, equipment, personnel, and facilities of those 

11 agencies; and 

12 (B) cooperate with other public and private 

13 agencies and instrumentalities in the use of services, 

14 equipment, personnel, and facilities; and 

15 (6) establish within the Administration such of16 fices and procedures as the Administrator considers 

17 appropriate to provide for the greatest possible co18 ordination of the activities of the Administration 

19 with related scientific and other activities of other 

20 public and private agencies and organizations. 

21 SEC. 7. ORGANIZATIONAL STRUCTURE. 

22 (a) POLICY ADVISORY COMMITTEE.— 

23 (1) ESTABLISHMENT.—There is established in 

24 the Administration a Policy Advisory Committee. 

25 (2) MEMBERSHIP.— 


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1 (A) COMPOSITION.—The Advisory Com2 mittee shall be composed of 12 members, of 

3 whom— 

4 (i) 4 members shall be representatives 

5 of the energy efficiency and environmental 

6 protection community; 

7 (ii) 4 members shall be representa8 tives of— 

9 (I) industries involved in the gen10 eration, transmission, or distribution 

11 of energy products; or 

12 (II) the transportation industry; 

13 and 

14 (iii) 4 members shall be representa15 tives of the scientific and university re16 search community. 

17 (B) APPOINTMENT.—The Speaker of the 

18 House of Representatives, the minority leader 

19 of the House of Representatives, the majority 

20 leader of the Senate, and the minority leader of 

21 the Senate shall each appoint 1 member de22 scribed in clauses (i), (ii), and (iii) of subpara23 graph (A). 

24 (3) DUTIES.—The Advisory Committee shall— 


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1 (A) act as a steering committee for the Ad2 ministration; 

3 (B) advise the Administrator on the for4 mulation of a long-term strategy for achieving 

5 the mission of the Administration under section 

6 5(b); and 

7 (C) assist the Administrator in identifying 

8 energy-efficient technologies and initiatives 

9 that— 

10 (i) have the potential to increase en11 ergy efficiency over the long term; and 

12 (ii) should be further explored by the 

13 Administration. 

14 (4) STAFF.—The Advisory Committee may ap15 point not more than 24 employees to assist in car16 rying out the duties of the Advisory Committee, of 

17 whom— 

18 (A) 8 shall report to the members ap19 pointed under paragraph (2)(A)(i); 

20 (B) 8 shall report to the members ap21 pointed under paragraph (2)(A)(ii); and 

22 (C) 8 shall report to the members ap23 pointed under paragraph (2)(A)(iii). 


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1 (5) FACA.—The Federal Advisory Committee 

2 Act (5 U.S.C. App.) shall apply to the Advisory 

3 Committee. 

4 (b) OFFICE OF ADMINISTRATION.— 

5 (1) ESTABLISHMENT.—There is established in 

6 the Administration an Office of Administration. 

7 (2) ASSISTANT DEPUTY ADMINISTRATOR.—The 

8 head of the Office of Administration shall be an As9 sistant Deputy Administrator for Administration, to 

10 be appointed by the Administrator. 

11 (3) ENERGY EFFICIENCY ECONOMICS DIVI12 SION.— 

13 (A) ESTABLISHMENT.—There is estab14 lished in the Office of Administration an En15 ergy Efficiency Economics Division. 

16 (B) STAFF.—The Energy Efficiency Eco17 nomics Division shall be composed of econo18 mists and individuals with expertise in energy 

19 markets, consumer behavior, and the economic 

20 impacts of energy policy 

21 (C) DUTIES.—The Energy Efficiency Eco22 nomics Division shall— 

23 (i) study the effects of existing and 

24 proposed energy-efficient technologies on 


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1 the economy of the United States, with an 

2 emphasis on assessing— 

3 (I) the impacts of those tech4 nologies on consumers; and 

5 (II) the contributions of those 

6 technologies on the economic develop7 ment of the United States; 

8 (ii) conduct a study of economic in9 centives that would assist the Administra10 tion in— 

11 (I) developing energy-efficient 

12 technologies; and 

13 (II) introducing those tech14 nologies into the marketplace; and 

15 (iii) submit to Congress a report on 

16 the results of the study conducted under 

17 clause (ii). 

18 (4) EDUCATION DIVISION.— 

19 (A) ESTABLISHMENT.—There is estab20 lished in the Office of Administration an Edu21 cation Division. 

22 (B) DUTIES.—The Education Division 

23 shall— 

24 (i) provide to the public, information 

25 concerning— 


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1 (I) how to conserve energy; and 

2 (II) the importance of conserving 

3 energy; and 

4 (ii) provide to building owners, engi5 neers, contractors, and other 

6 businesspeople training in energy-efficient 

7 technologies. 

8 (5) GENERAL COUNSEL.—There is established 

9 in the Office of Administration the position of Gen10 eral Counsel, to be appointed by the Administrator, 

11 to serve as the chief legal officer of the Administra12 tion. 

13 (c) OFFICE OF POLICY, RESEARCH, AND DEVELOP14 MENT.— 

15 (1) ESTABLISHMENT.—There is established in 

16 the Administration an Office of Policy, Research, 

17 and Development. 

18 (2) DUTIES.—The Office of Policy, Research, 

19 and Development shall— 

20 (A) sponsor, manage, and direct basic and 

21 applied research projects, including projects to 

22 accelerate the development of energy-efficient 

23 technologies from fundamental research to im24 plementation; and 


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1 (B) provide technical guidance to the Ad2 ministrator. 

3 (3) ASSISTANT DEPUTY ADMINISTRATOR.—The 

4 head of the Office of Policy, Research, and Develop5 ment shall be an Assistant Deputy Administrator for 

6 Policy, Research, and Development, to be appointed 

7 by the Administrator. 

8 (4) ADMINISTRATION.—In carrying out this 

9 subsection, the Office of Policy, Research, and De10 velopment shall consider the potential benefits of— 

11 (A) a flat organizational structure com12 prised of project-based teams; 

13 (B) coordination with the private sector; 

14 and 

15 (C) organizational models used by other 

16 Federal agencies conducting advanced research. 

17 (d) OFFICE OF VENTURE CAPITAL.— 

18 (1) ESTABLISHMENT.—There is established in 

19 the Administration an Office of Venture Capital. 

20 (2) ASSISTANT DEPUTY ADMINISTRATOR.—The 

21 head of the Office of Venture Capital shall be an As22 sistant Deputy Administrator for Venture Capital, to 

23 be appointed by the Administrator. 

24 (3) DUTIES.—The Office of Venture Capital 

25 shall— 


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1 (A) accept applications from public and 

2 private entities requesting financial assistance 

3 for energy-efficient technology proposals; 

4 (B) accept recommendations and input 

5 from the Deputy Administrator and the Policy 

6 Advisory Committee on applications submitted 

7 under subparagraph (A); and 

8 (C) from among the applications submitted 

9 under subparagraph (A) and taking into ac10 count the objectives described in section 5(f)(2), 

11 award financial assistance to applicants to carry 

12 out the proposals that are most likely to im13 prove energy efficiency. 

14 (e) COORDINATION.—The Administrator— 

15 (1) shall ensure that the activities of the Ad16 ministration are coordinated with the activities of 

17 other relevant research agencies; and 

18 (2) may carry out projects jointly with other 

19 agencies. 

20 SEC. 8. INITIAL TECHNOLOGY SOLICITATIONS. 

21 (a) IN GENERAL.—The Administrator (acting 

22 through the Office of Venture Capital and the Office of 

23 Policy, Research, and Development) may, based on the cri24 teria described in subsection (b), initiate the development 

25 of technologies for— 


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1 (1) fuel cells; 

2 (2) fuel-efficient tires; 

3 (3) construction of a hydrogen infrastructure; 

4 (4) high-temperature superconducting cable; 

5 (5) improved switches, resistors, capacitors, 

6 software and smart meters for electrical trans7 mission systems; 

8 (6) combined heat and power; 

9 (7) micro turbines; 

10 (8) energy-efficient lighting; 

11 (9) energy efficiency training for building con12 tractors; 

13 (10) biogas recovery systems; 

14 (11) integrated gasification combined cycle coal 

15 production; 

16 (12) retrofitting or rehabilitation of existing 

17 structures to incorporate energy-efficient tech18 nologies; and 

19 (13) efficient micro-channel heat exchangers. 

20 (b) CRITERIA.—In determining which technologies to 

21 develop under subsection (a), the Administrator shall con22 sider— 

23 (1) the current status of development of the 

24 technology; 


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1 (2) the potential for widespread use of the tech2 nology in commercial markets; 

3 (3) the time and costs of efforts needed to bring 

4 the technology to full implementation; and 

5 (4) the potential of the technology to contribute 

6 to the goals of the Administration. 

7 (c) REPORT.—As soon as practicable after the date 

8 of enactment of this Act, but not later than 1 year after 

9 the date of enactment of this Act, the Administrator shall 

10 submit to Congress a report that— 

11 (1) assesses the potential for the technologies 

12 described in subsection (a) to contribute to the goals 

13 of the Administration; and 

14 (2) describes the plans of the Administration to 

15 develop the technologies under subsection (a). 

16 SEC. 9. REPORTS. 

17 (a) REPORTS BY ADMINISTRATOR.— 

18 (1) ACTIVITIES AND ACCOMPLISHMENTS.— 

19 Semiannually and at such other times as the Admin20 istrator considers to be appropriate, the Adminis21 trator shall submit to the President a report that de22 scribes the activities and accomplishments of the Ad23 ministration. 

24 (2) REPORT TO CONGRESS.—At the time at 

25 which the Administrator submits to the President or 


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1 the Director of the Office of Management and Budg2 et any report relating to any budget information, 

3 legislative recommendation, comment on legislation 

4 about amounts made available under this Act, or 

5 prepared testimony for a congressional hearing, the 

6 Administrator shall submit a copy of the informa7 tion, recommendation, comment, or testimony to 

8 each appropriate committee of Congress. 

9 (b) REPORTS BY PRESIDENT.—In January of each 

10 year, the President shall submit to Congress a report that 

11 includes— 

12 (1) a description of the activities and accom13 plishments of all agencies of the United States in 

14 the field of energy efficiency during the preceding 

15 calendar year; 

16 (2) an evaluation of the activities and accom17 plishments of the Administrator in attaining the ob18 jectives of this Act; and 

19 (3) such recommendations for additional legisla20 tion as the Administrator or the President considers 

21 appropriate for the attainment of the objectives de22 scribed in this Act. 

23 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

24 There are authorized to be appropriated to carry out 

25 this Act— 


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1 (1) $7,500,000,000 for each of fiscal years 

2 2007 and 2008; 

3 (2) $9,000,000,000 for each of fiscal years 

4 2009 and 2010; and 

5 (3) $10,000,000,000 for each of fiscal years 

6 2011 through 2015. 

Æ 


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