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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3464 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3464

To establish an energy and climate policy framework to reach measurable 
 gains in reducing dependence on foreign oil, saving Americans money, 
 improving energy security, and cutting greenhouse gas emissions, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 9, 2010

 Mr. Lugar (for himself, Mr. Graham, and Ms. Murkowski) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
To establish an energy and climate policy framework to reach measurable 
 gains in reducing dependence on foreign oil, saving Americans money, 
 improving energy security, and cutting greenhouse gas emissions, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Practical Energy 
and Climate Plan Act of 2010''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--REDUCING FOREIGN OIL DEPENDENCE

                     Subtitle A--Vehicle Efficiency

Sec. 101. Fuel efficiency standards.
Sec. 102. Revenue neutral fuel performance program for motor vehicles.
                        Subtitle B--Fuel Choice

Sec. 111. Production incentives for renewable fuels.
Sec. 112. Ensuring the availability of dual fueled automobiles and 
                            light duty trucks.
                      TITLE II--ENERGY EFFICIENCY

       Subtitle A--National Building Energy Performance Standards

Sec. 201. Greater energy efficiency in building codes.
                     Subtitle B--Federal Buildings

Sec. 211. Energy efficient Federal buildings.
        Subtitle C--Homes and Buildings Energy Retrofits Program

Sec. 221. Definitions.
Sec. 222. Homes and Buildings Energy Retrofits Program.
Sec. 223. General provisions.
Sec. 224. Authorization of appropriations.
                Subtitle D--Rural Energy Savings Program

Sec. 231. Rural energy savings program.
                Subtitle E--Industrial Energy Efficiency

Sec. 241. State partnership industrial energy efficiency revolving loan 
                            program.
        Subtitle F--Appliance and Equipment Efficiency Standards

Sec. 251. Appliance and equipment efficiency.
Sec. 252. Federal procurement of energy efficient products.
                   TITLE III--DIVERSE DOMESTIC POWER

Sec. 301. Federal diverse energy standard.
Sec. 302. Fossil fuel generating facility retirement program.
Sec. 303. Funding for loan guarantees for advanced nuclear energy 
                            facilities.
    TITLE IV--MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE PROGRAMS

Sec. 401. Measurement and review of energy and climate change programs.

                TITLE I--REDUCING FOREIGN OIL DEPENDENCE

                     Subtitle A--Vehicle Efficiency

SEC. 101. FUEL EFFICIENCY STANDARDS.

    (a) Standards for Light Vehicles.--Section 32902 of title 49, 
United States Code, is amended--
            (1) in subsection (a), by inserting ``, reflecting at least 
        a 4 percent annual increase beginning in model year 2017 
        (rounded to the nearest \1/10\ mile per gallon)'' before the 
        period at the end;
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in the subparagraph heading, by 
                                striking ``2020'' and inserting 
                                ``2016'';
                                    (II) by striking ``2020'' and 
                                inserting ``2016''; and
                                    (III) by striking ``35'' and 
                                inserting ``34.1'';
                            (ii) in subparagraph (B)--
                                    (I) in the subparagraph heading, by 
                                striking ``2021'' and inserting 
                                ``2017'';
                                    (II) by striking ``2021'' and 
                                inserting ``2017''; and
                                    (III) by inserting ``, reflecting 
                                at least a 4 percent annual increase 
                                for each model year'' before the period 
                                at the end; and
                            (iii) in subparagraph (C)--
                                    (I) by striking ``subparagraph 
                                (A)'' and inserting ``subparagraphs (A) 
                                and (B)'';
                                    (II) by striking ``and ending with 
                                model year 2020''; and
                                    (III) by adding at the end the 
                                following: ``The projected aggregate 
                                level of average fuel economy for model 
                                year 2017 and each succeeding model 
                                year shall reflect at least a 4 percent 
                                increase from the level for the prior 
                                model year (rounded to the nearest \1/
                                10\ mile per gallon).''; and
                    (B) by adding at the end the following:
            ``(5) Unified regulatory requirements.--Regulations under 
        this subsection and amendments to regulations under subsection 
        (c) shall, to the maximum extent practicable, be promulgated 
        (including through joint rulemaking), coordinated, and 
        implemented in conjunction with pollutant regulations 
        promulgated by the the Administrator of the Environmental 
        Protection Agency.'';
            (3) in subsection (c)--
                    (A) by inserting ``(1)'' before ``The Secretary'';
                    (B) by striking ``that model year.'' and inserting 
                the following: ``model year, including to a level lower 
                than a 4 percent annual increase if the Secretary 
                determines the standards prescribed under subsection 
                (b) for each model year--
            ``(A) are technologically unachievable;
            ``(B) cannot be achieved without materially reducing the 
        overall safety of automobiles manufactured or sold in the 
        United States; or
            ``(C) is shown, by clear and convincing evidence, not to be 
        cost effective.
    ``(2) If a standard reflecting a level lower than a 4 percent 
annual increase is prescribed for a model year under subsection (b), 
such standard shall be the maximum standard that--
            ``(A) is technologically achievable;
            ``(B) can be achieved without materially reducing the 
        overall safety of automobiles manufactured or sold in the 
        United States; and
            ``(C) is cost effective.'';
                    (C) by striking ``Section 553'' and inserting the 
                following:
    ``(3) Section 553''; and
                    (D) by adding at the end the following:
    ``(4) Not later than 90 days before issuing an amended standard 
that would lower the fuel economy standards below the level prescribed 
under subsection (b), the Secretary shall--
            ``(A) provide written notification to the Committee on 
        Energy and Commerce of the House of Representatives, the 
        Committee on Commerce, Science, and Transportation of the 
        Senate, and the Committee on Energy and Natural Resources of 
        the Senate, regarding the amendments made to the fuel economy 
        standards prescribed in subsection (b); and
            ``(B) make publicly available non-proprietary documentation 
        regarding the amendment decision''; and
            (4) in subsection (f)--
                    (A) by striking ``When deciding'' and inserting 
                ``(1) In determining'';
                    (B) by striking ``economic practicability'' and 
                inserting ``cost effectiveness''; and
                    (C) by adding at the end the following:
    ``(2) In determining cost effectiveness under paragraph (1), the 
Secretary of Transportation shall take into account the total value to 
the Nation of reduced petroleum use, including the value of reducing 
external costs of petroleum use, using a value for such costs equal to 
50 percent of the value of a gallon of gasoline saved or the amount 
determined in an analysis of the external costs of petroleum use that 
considers--
            ``(A) value to consumers;
            ``(B) economic security;
            ``(C) national security;
            ``(D) foreign policy;
            ``(E) the impact of oil use on--
                    ``(i) sustained cartel rents paid to foreign 
                suppliers;
                    ``(ii) long-run potential gross domestic product 
                due to higher normal-market oil price levels, including 
                inflationary impacts;
                    ``(iii) import costs, wealth transfers, and 
                potential gross domestic product due to increased trade 
                imbalances;
                    ``(iv) import costs and wealth transfers during oil 
                shocks;
                    ``(v) macroeconomic dislocation and adjustment 
                costs during oil shocks;
                    ``(vi) the cost of existing energy security 
                policies, including the management of the Strategic 
                Petroleum Reserve;
                    ``(vii) the timing and severity of the oil peaking 
                problem;
                    ``(viii) the risk, probability, size, and duration 
                of oil supply disruptions;
                    ``(ix) OPEC strategic behavior and long-run oil 
                pricing;
                    ``(x) the short term elasticity of energy demand 
                and the magnitude of price increases resulting from a 
                supply shock;
                    ``(xi) oil imports, military costs, and related 
                security costs, including intelligence, homeland 
                security, sea lane security and infrastructure, and 
                other military activities;
                    ``(xii) oil imports, diplomatic and foreign policy 
                flexibility, and connections to geopolitical strife, 
                terrorism, and international development activities;
                    ``(xiii) all relevant environmental hazards under 
                the jurisdiction of the Environmental Protection 
                Agency; and
                    ``(xiv) well-to-wheels urban and local air 
                emissions of `pollutants' and their uninternalized 
                costs;
            ``(F) the impact of the oil or energy intensity of the 
        United States economy on the sensitivity of the economy to oil 
        price changes, including the magnitude of gross domestic 
        product losses in response to short-term price shocks or long-
        term price increases;
            ``(G) the impact of United States payments for oil imports 
        on political, economic, and military developments in unstable 
        or unfriendly oil exporting countries;
            ``(H) the uninternalized costs of pipeline and storage oil 
        seepage, and for risk of oil spills from production, handling, 
        transport, and related landscape damage; and
            ``(I) additional relevant factors, as determined by the 
        Secretary in consultation with the Secretary of Energy, the 
        Administrator of the Environmental Protection Agency, the 
        Secretary of State, the Secretary of Defense, the Secretary of 
        Homeland Security, and the Director of National Intelligence.
    ``(3) In considering the value to consumers of a gallon of gasoline 
saved, the Secretary of Transportation may not use a value that is less 
than the greatest of--
            ``(A) the average national cost of a gallon of gasoline 
        sold in the United States during the 12-month period ending on 
        the date on which the new fuel economy standard is proposed;
            ``(B) the most recent weekly estimate by the Energy 
        Information Administration of the Department of Energy of the 
        average national cost of a gallon of gasoline (all grades) sold 
        in the United States; or
            ``(C) the gasoline prices projected by the Energy 
        Information Administration for the 20-year period beginning in 
        the year following the year in which the standards are 
        established.''.
    (b) Standards for Medium- and Heavy-Duty Vehicles.--Section 
32902(k) of title 49, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) greatest achievable fuel efficiency 
                improvement targets for rules pertaining to commercial 
                medium- and heavy-duty vehicles and work trucks, taking 
                into consideration the national security and economic 
                benefits of reduced petroleum consumption and relevant 
                factors in the manufacture and work accomplished of 
                such vehicles.'';
            (2) in paragraph (2)--
                    (A) by striking ``Not later'' and inserting the 
                following:
                    ``(A) Implementation.--Not later'';
                    (B) by striking ``fuel economy standards'' and 
                inserting ``fuel efficiency standards (taking into 
                consideration the national security and economic 
                benefits of reduced petroleum consumption)'';
                    (C) by striking ``The Secretary may'' and inserting 
                the following:
                    ``(B) Separate standards.--The Secretary may'';
                    (D) in subparagraph (B), as designated by 
                subparagraph (C) of this paragraph, by adding at the 
                end the following: ``Recognizing the differentiated 
                level of technological development and data available 
                between classes, as identified by the National Academy 
                of Sciences report `Technologies and Approaches to 
                Reducing the Fuel Consumption of Medium- and Heavy-Duty 
                Vehicles,' the Secretary may implement regulations for 
                certain vehicle classes and vehicle components 
                authorized under this subsection, as designated by the 
                Secretary, on an accelerated basis.''; and
                    (E) by adding at the end the following:
                    ``(C) Applicability; adjustments.--Standards issued 
                under this subsection--
                            ``(i) may apply to--
                                    ``(I) vehicle components;
                                    ``(II) whole vehicles based on 1 or 
                                more attributes; or
                                    ``(III) any combination of (I) and 
                                (II);
                            ``(ii) shall, subject to paragraph (3)--
                                    ``(I) be implemented for vehicles 
                                manufactured for sale in the United 
                                States during or before model year 
                                2017; and
                                    ``(II) allow for fuel efficiency 
                                regulation of vehicle components or 
                                whole vehicles before such model year; 
                                and
                            ``(iii) shall periodically, but not less 
                        frequently than every 4 model years, be 
                        adjusted to achieve the maximum technologically 
                        feasible fuel efficiency improvements (taking 
                        into account considerations of oil import 
                        dependence) which do not materially affect 
                        vehicle safety and that are cost effective.
                    ``(D) Cost effective criteria.--As used in 
                subparagraph (C)(iii), the term `cost effective' shall 
                be subject to considerations established under 
                subsection (f) and other criteria determined by the 
                Secretary;
                    ``(E) Waiver; notification; review.--The Secretary 
                may waive adjustments to the standards issued under 
                this subsection if the Secretary determines that any 
                such adjustment is not necessary to achieve the maximum 
                technologically feasible fuel efficiency improvements. 
                If such a determination is made, the Secretary shall 
                provide written notification to the Committee on Energy 
                and Commerce of the House of Representatives, the 
                Committee on Commerce, Science, and Transportation of 
                the Senate, and the Committee on Energy and Natural 
                Resources of the Senate, not later than 180 days before 
                the day that is 4 years after the day on which the most 
                recent standards came into effect. The Secretary shall 
                review any determination made under this subparagraph 
                every 2 years.''; and
            (3) by adding at the end the following:
            ``(4) Unified regulatory requirements.--Regulations issued 
        pursuant to paragraph (2) shall, to the maximum extent 
        practicable, be established (including through joint 
        rulemaking), coordinated, and implemented in conjunction with 
        pollutant regulations administered by the Environmental 
        Protection Agency.''.

SEC. 102. REVENUE NEUTRAL FUEL PERFORMANCE PROGRAM FOR MOTOR VEHICLES.

    (a) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this section or section 103 an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue Code of 
1986.
    (b) Fuel Performance Rebate.--Subpart B of part IV of subchapter A 
of chapter 1 (relating to other credits) is amended by inserting after 
section 30D the following new section:

``SEC. 30E. FUEL PERFORMANCE REBATE.

    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to the amount determined under paragraph (2) with 
        respect to any new qualified fuel-efficient motor vehicle 
        placed in service by the taxpayer during the taxable year.
            ``(2) Credit amount.--With respect to each new qualified 
        fuel-efficient motor vehicle, the amount determined under this 
        paragraph shall be equal to the product of--
                    ``(A) the absolute value of the difference between 
                the fuel-economy rating and the reference fuel-economy 
                rating for such motor vehicle for the model year, and
                    ``(B) 100, and
                    ``(C) the applicable amount.
            ``(3) Applicable amount.--For purposes of paragraph (2)(C), 
        the applicable amount is equal to--
                    ``(A) in the case of model year 2011--
                            ``(i) $1,000, or
                            ``(ii) $2,000, if the fuel-economy rating 
                        for such motor vehicle is at least 50 percent 
                        more efficient than the reference fuel-economy 
                        rating for such motor vehicle as determined 
                        under paragraph (2)(A), and
                    ``(B) in the case of any succeeding model year--
                            ``(i) $1,500, or
                            ``(ii) $2,500, if the fuel-economy rating 
                        for such motor vehicle is at least 50 percent 
                        more efficient than the reference fuel-economy 
                        rating for such motor vehicle as determined 
                        under paragraph (2)(A), or
                            ``(iii) $3,500, if the fuel-economy rating 
                        for such motor vehicle is at least 75 percent 
                        more efficient than the reference fuel-economy 
                        rating for such motor vehicle as determined 
                        under paragraph (2)(A).
    ``(b) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of 
this section, the term `new qualified fuel-efficient motor vehicle' 
means a passenger automobile or light truck--
            ``(1) which is treated as a motor vehicle for purposes of 
        title II of the Clean Air Act,
            ``(2) which achieves a fuel-economy rating that is more 
        efficient than the reference fuel-economy rating for such motor 
        vehicle for the model year,
            ``(3) for which standards are prescribed pursuant to 
        section 32902 of title 49, United States Code,
            ``(4) the original use of which commences with the 
        taxpayer,
            ``(5) which is acquired for use or lease by the taxpayer 
        and not for resale,
            ``(6) the purchase price of which, less the amount 
        allowable under subsection (a) with respect to such vehicle, 
        does not exceed $50,000, and
            ``(7) which is made by a manufacturer beginning with model 
        year 2013.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Refundable personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart C 
                for such taxable year (and not allowed under subsection 
                (a)).
                    ``(B) Refundable credit may be transferred.--
                            ``(i) In general.--A taxpayer may, in 
                        connection with the purchase of a new qualified 
                        fuel-efficient motor vehicle, transfer any 
                        refundable credit described in subparagraph (A) 
                        to any person who is in the trade or business 
                        of selling new qualified fuel-efficient motor 
                        vehicles and who sold such vehicle to the 
                        taxpayer, but only if such person clearly 
                        discloses to such taxpayer, through the use of 
                        a window sticker attached to the new qualified 
                        fuel-efficient vehicle--
                                    ``(I) the amount of the refundable 
                                credit described in subparagraph (A) 
                                with respect to such vehicle, and
                                    ``(II) a notification that the 
                                taxpayer will not be eligible for any 
                                credit under section 30, 30B, or 30D 
                                with respect to such vehicle unless the 
                                taxpayer elects not to have this 
                                section apply with respect to such 
                                vehicle.
                            ``(ii) Certification.--A transferee of a 
                        refundable credit described in subparagraph (A) 
                        may not claim such credit unless such claim is 
                        accompanied by a certification to the Secretary 
                        that the transferee reduced the price the 
                        taxpayer paid for the new qualified fuel-
                        efficient motor vehicle by the entire amount of 
                        such refundable credit.
                            ``(iii) Consent required for revocation.--
                        Any transfer under clause (i) may be revoked 
                        only with the consent of the Secretary.
                            ``(iv) Regulations.--The Secretary may 
                        prescribe such regulations as necessary to 
                        ensure that any refundable credit described in 
                        clause (i) is claimed once and not 
                        retransferred by a transferee.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Fuel-economy rating.--The term `fuel-economy rating' 
        means, with respect to any motor vehicle, the combined fuel-
        economy rating for such motor vehicle, expressed in gallons per 
        mile, determined in accordance with section 32904 of title 49, 
        United States Code.
            ``(2) Model year.--The term `model year' has the meaning 
        given such term under section 32901(a) of such title 49.
            ``(3) Motor vehicle.--The term `motor vehicle' means any 
        vehicle which is manufactured primarily for use on public 
        streets, roads, and highways (not including a vehicle operated 
        exclusively on a rail or rails) and which has at least 4 
        wheels.
            ``(4) Reference fuel-economy rating.--The term `reference 
        fuel-economy rating' means, with respect to any motor vehicle, 
        the fuel economy standard for such motor vehicle, expressed in 
        gallons per mile, calculated by applying the relevant vehicle 
        attributes to the mathematical function published pursuant to 
        section 32902(b)(3)(A) of title 49, United States Code.
            ``(5) Other terms.--The terms `automobile', `passenger 
        automobile', `light truck', and `manufacturer' have the 
        meanings given such terms in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(e) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, the 
        basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (c)).
            ``(2) No double benefit.--No other credit shall be 
        allowable under this chapter for a new qualified fuel-efficient 
        motor vehicle with respect to which a credit is allowed under 
        this section.
            ``(3) Property used by tax-exempt entity.--In the case of a 
        vehicle whose use is described in paragraph (3) or (4) of 
        section 50(b) and which is not subject to a lease, the person 
        who sold such vehicle to the person or entity using such 
        vehicle shall be treated as the taxpayer that placed such 
        vehicle in service, but only if such person clearly discloses 
        to such person or entity in a document the amount of any credit 
        allowable under subsection (a) with respect to such vehicle 
        (determined without regard to subsection (c)). For purposes of 
        subsection (c), property to which this paragraph applies shall 
        be treated as of a character subject to an allowance for 
        depreciation.
            ``(4) Property used outside united states, etc., not 
        qualified.--No credit shall be allowable under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(5) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit (including recapture in 
        the case of a lease period of less than the economic life of a 
        vehicle).
            ``(6) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(7) Interaction with air quality and motor vehicle safety 
        standards.--A motor vehicle shall not be considered eligible 
        for a credit under this section unless such vehicle is in 
        compliance with--
                    ``(A) the applicable provisions of the Clean Air 
                Act for the applicable make and model year of the 
                vehicle (or applicable air quality provisions of State 
                law in the case of a State which has adopted such 
                provisions under a waiver under section 209(b) of the 
                Clean Air Act), and
                    ``(B) the motor vehicle safety provisions of 
                sections 30101 through 30169 of title 49, United States 
                Code.
            ``(8) Inflation adjustment.--In the case of any model year 
        beginning in a calendar year after 2011, each dollar amount in 
        subsection (a)(3)(B) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the model year begins, determined by substituting 
                `2010' for `1992' in subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $100.
    ``(f) Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall promulgate such regulations as necessary to 
        carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in coordination 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency, shall prescribe such 
        regulations as necessary to determine whether a motor vehicle 
        meets the requirements to be eligible for a credit under this 
        section.''.
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) Business credit.--Section 38(c)(4)(B) is amended--
                    (A) by redesignating clauses (i) through (viii) as 
                clauses (ii) through (ix), respectively; and
                    (B) by inserting before clause (ii) (as so 
                redesignated) the following new clause:
                            ``(i) the credit determined under section 
                        30E,''.
            (2) Personal credit.--
                    (A) Section 24(b)(3)(B) is amended by striking 
                ``and 30D'' and inserting ``30D, and 30E''.
                    (B) Section 25(e)(1)(C)(ii) is amended by inserting 
                ``30E,'' after ``30D,''.
                    (C) Section 25B(g)(2) is amended by striking ``and 
                30D'' and inserting ``30D, and 30E''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                30D'' and inserting ``30D, and 30E''.
                    (E) Section 904(i) is amended by striking ``and 
                30D'' and inserting ``30D, and 30E''.
    (d) Display of Credit.--Section 32908(b)(1) of title 49, United 
States Code, is amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G); and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) the amount of the fuel-efficient motor 
                vehicle credit allowable with respect to the sale of 
                the automobile under section 30E of the Internal 
                Revenue Code of 1986 (26 U.S.C. 30E).''.
    (e) Conforming Amendments.--
            (1) Section 38(a) is amended--
                    (A) in paragraph (34), by striking ``plus'' at the 
                end;
                    (B) in paragraph (35), by striking the period at 
                the end and inserting ``, plus''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(36) the portion of the fuel performance rebate to which 
        section 30E(c)(1) applies.''.
            (2) Section 1016(a) is amended--
                    (A) in paragraph (36), by striking ``and'' at the 
                end;
                    (B) in paragraph (37), by striking the period at 
                the end and inserting ``, and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(38) to the extent provided in section 30E(e)(1).''.
            (3) Section 6501(m) is amended by inserting ``30E(e)(6),'' 
        after ``30D(e)(4),''.
            (4) The table of section for subpart C of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 30D the following new item:

``Sec. 30E. Fuel performance rebate.''.
    (f) Revenue Neutrality Provisions for Fuel Performance Credit.--
Section 4064 is amended to read as follows:

``SEC. 4064. FISCAL OFFSET PROVISIONS FOR FUEL PERFORMANCE CREDIT.

    ``(a) Imposition of Tax.--
            ``(1) In general.--There is hereby imposed on the sale by 
        the manufacturer of each fuel guzzler motor vehicle a tax equal 
        to the product of--
                    ``(A) the absolute value of the difference between 
                the fuel-economy rating and the reference fuel-economy 
                rating for such motor vehicle for the model year, and
                    ``(B) 100, and
                    ``(C) the applicable amount.
            ``(2) Applicable amount.--For purposes of paragraph (1)(C), 
        the applicable amount is equal to--
                    ``(A) $1,500, or
                    ``(B) $2,500, if the fuel-economy rating for such 
                motor vehicle is more than 50 percent less efficient 
                than the reference fuel-economy rating for such motor 
                vehicle as determined under paragraph (1)(A), or
                    ``(C) $3,500, if the fuel-economy rating for such 
                motor vehicle is more than 75 percent less efficient 
                than the reference fuel-economy rating for such motor 
                vehicle as determined under paragraph (1)(A).
    ``(b) Fuel Guzzler Motor Vehicle.--For purposes of this section--
            ``(1) In general.--The term `fuel guzzler motor vehicle' 
        means a passenger automobile or light truck--
                    ``(A) which is treated as a motor vehicle for 
                purposes of title II of the Clean Air Act,
                    ``(B) which achieves a fuel-economy rating that is 
                less efficient than the reference fuel-economy rating 
                for such motor vehicle for the model year,
                    ``(C) which has a gross vehicle weight rating of 
                not more than 8,500 pounds, and
                    ``(D) which is made by a manufacturer beginning 
                with model year 2013.
            ``(2) Exception for emergency vehicles.--The term `fuel 
        guzzler motor vehicle' does not include any vehicle sold for 
        use and used--
                    ``(A) as an ambulance or combination ambulance-
                hearse,
                    ``(B) by the United States or by a State or local 
                government for police or other law enforcement 
                purposes, or
                    ``(C) for other emergency uses prescribed by the 
                Secretary by regulations.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) Fuel-economy rating.--The term `fuel-economy rating' 
        means, with respect to any motor vehicle, the combined fuel-
        economy rating for such motor vehicle, expressed in gallons per 
        mile, determined in accordance with section 32904 of title 49, 
        United States Code.
            ``(2) Model year.--The term `model year' has the meaning 
        given such term under section 32901(a) of such title 49.
            ``(3) Motor vehicle.--The term `motor vehicle' means any 
        vehicle which is manufactured primarily for use on public 
        streets, roads, and highways (not including a vehicle operated 
        exclusively on a rail or rails) and which has at least 4 
        wheels.
            ``(4) Reference fuel-economy rating.--The term `reference 
        fuel-economy rating' means, with respect to any motor vehicle, 
        the fuel economy standard for such motor vehicle, expressed in 
        gallons per mile, calculated by applying the relevant vehicle 
        attributes to the mathematical function published pursuant to 
        section 32902(b)(3)(A) of title 49, United States Code.
            ``(5) Other terms.--The terms `automobile', `passenger 
        automobile', `light truck', and `manufacturer' have the 
        meanings given such terms in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(d) Inflation Adjustment.--In the case of any model year 
beginning in a calendar year after 2010, each dollar amount in 
subsection (a)(2) shall be increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the model year 
        begins, determined by substituting `2009' for `1992' in 
        subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded 
to the nearest multiple of $100.''.
    (g) Conforming Amendments.--
            (1) The heading for part I of subchapter A of chapter 32 is 
        amended by striking ``gas'' and inserting ``fuel''.
            (2) The table of parts for subchapter A of chapter 32 is 
        amended by striking ``Gas'' in the item relating to part I and 
        inserting ``Fuel''.
            (3) The table of sections for part I of subchapter A of 
        chapter 32 is amended by striking ``Gas'' in the item relating 
        to section 4064 and inserting ``Fuel''.
            (4) The heading for subsection (d) of section 1016 is 
        amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel 
        Performance Fee''.
            (5) The heading for subsection (e) of section 4217 is 
        amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel 
        Performance Fee''.
            (6) The heading for subparagraph (B) of section 4217(e)(3) 
        is amended by striking ``gas guzzler tax'' and inserting ``fuel 
        performance fee''.
            (7) Section 4217(e) is amended by striking ``gas guzzler 
        tax'' each place it appears and inserting ``fuel performance 
        fee''.
    (h) Effective Date.--The amendments made by subsections (a) through 
(e) shall apply to property placed in service after the date of the 
enactment of this Act. The amendments made by subsections (f) and (g) 
shall apply to sales of vehicles beginning with model year 2013.

                        Subtitle B--Fuel Choice

SEC. 111. PRODUCTION INCENTIVES FOR RENEWABLE FUELS.

    Section 942 of the Energy Policy Act of 2005 (42 U.S.C. 16251) is 
amended--
            (1) in the section heading, by striking ``cellulosic 
        biofuels'' and inserting ``renewable fuels'';
            (2) by striking ``cellulosic biofuels'' each place it 
        appears (other than subsection (b)(1)) and inserting 
        ``renewable fuels'';
            (3) in subsection (a), by striking ``biofuels'' each place 
        it appears and inserting ``renewable fuels'';
            (4) in subsection (b)--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph 
                (1); and
                    (C) by inserting after paragraph (1) (as so 
                redesignated) the following:
            ``(2) Renewable fuel.--
                    ``(A) In general.--The term `renewable fuel' has 
                the meaning given the term in section 211(o)(1) of the 
                Clean Air Act (42 U.S.C. 7545(o)(1)).
                    ``(B) Inclusion.--The term `renewable fuel' 
                includes algae.
                    ``(C) Exclusion.--The term `renewable fuel' does 
                not include grain.''; and
            (5) in subsection (f), by inserting ``for each of fiscal 
        years 2011 through 2015'' before the period at the end.

SEC. 112. ENSURING THE AVAILABILITY OF DUAL FUELED AUTOMOBILES AND 
              LIGHT DUTY TRUCKS.

    (a) In General.--Chapter 329 of title 49, United States Code, is 
amended by inserting after section 32902 the following:
``Sec. 32902A. Requirement to manufacture dual fueled automobiles and 
              light duty trucks
    ``(a) In General.--For each model year listed in the following 
table, each manufacturer shall ensure that the percentage of 
automobiles and light duty trucks manufactured by the manufacturer for 
sale in the United States that are dual fueled automobiles and light 
duty trucks is not less than the percentage set forth for that model 
year in the following table:

 
                   ``Model Year                                              Percentage
 
  Model years 2013 and 2014.......................  50 percent
  Model year 2015 and each subsequent model year..  90 percent.
 

    ``(b) Exception.--Subsection (a) shall not apply to automobiles or 
light duty trucks that operate only on electricity or other non-
petroleum based energy sources.''.
    (b) Clerical Amendment.--The table of sections for chapter 329 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 32902 the following:

``32902A. Requirement to manufacture dual fueled automobiles and light 
                            duty trucks.''.
    (c) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Transportation shall prescribe 
regulations to carry out the amendments made by this Act.

                      TITLE II--ENERGY EFFICIENCY

       Subtitle A--National Building Energy Performance Standards

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

    (a) In General.--Section 304 of the Energy Conservation and 
Production Act (42 U.S.C. 6833) is amended to read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    ``(a) Updating National Model Building Energy Codes.--
            ``(1) Targets.--
                    ``(A) In general.--The Secretary shall support 
                updating the national model building energy codes and 
                standards at least every 3 years to achieve overall 
                energy savings, compared to the 2006 IECC for 
                residential buildings and ASHRAE Standard 90.1-2004 for 
                commercial buildings.
                    ``(B) Minimum requirements.--The targets for 
                overall energy savings shall be at least a--
                            ``(i) 30 percent reduction in energy use 
                        relative to a comparable building constructed 
                        in compliance with the 2006 IECC by January 1, 
                        2012;
                            ``(ii) 30 percent reduction in energy use 
                        relative to a comparable building constructed 
                        in compliance with the ASHRAE Standard 90.1-
                        2004 by May 1, 2012;
                            ``(iii) 50 percent reduction in energy use 
                        relative to a comparable building constructed 
                        in compliance with the 2006 IECC by January 1, 
                        2015; and
                            ``(iv) 50 percent reduction in energy use 
                        relative to a comparable building constructed 
                        in compliance with the ASHRAE Standard 90.1-
                        2004 by January 1, 2017.
                    ``(C) Specific years.--
                            ``(i) In general.--Targets for specific 
                        dates subsequent to the dates established under 
                        clauses (i) and (ii) of subparagraph (B) shall 
                        be set by the Secretary at least 3 years in 
                        advance of each target date, coordinated with 
                        the IECC and ASHRAE Standard 90.1 cycles, at a 
                        level of energy efficiency that is 
                        technologically feasible and life-cycle cost 
                        effective and on a path to achieving net-zero-
                        energy buildings.
                            ``(ii) Different target years.--
                                    ``(I) In general.--Subject to 
                                paragraph (2)(D), not later than 3 
                                years prior to implementation of 
                                clauses (iii) and (iv) of subparagraph 
                                (B), the Secretary may set a different 
                                target date for the targets established 
                                under those clauses if the Secretary 
                                determines that a 50 percent target 
                                cannot be met by the target date.
                                    ``(II) Notice.--Not later than 15 
                                days prior to a determination made 
                                under subclause (I), the Secretary 
                                shall inform the Committee on Energy 
                                and Natural Resources of the Senate and 
                                the Committee on Energy and Commerce of 
                                the House of Representatives of the 
                                determination.
                    ``(D) Technical assistance to model code-setting 
                and standard development organizations.--
                            ``(i) In general.--The Secretary shall, on 
                        a timely basis, provide technical assistance to 
                        model code-setting and standard development 
                        organizations.
                            ``(ii) Assistance.--The assistance shall, 
                        to the maximum extent practicable, include 
                        technical assistance identified by the 
                        organizations such as for--
                                    ``(I) evaluating codes or standards 
                                proposals or revisions;
                                    ``(II) building energy analysis and 
                                design tools;
                                    ``(III) building demonstrations; 
                                and
                                    ``(IV) design assistance and 
                                training.
                    ``(E) Amendment proposals.--The Secretary shall 
                submit codes and standards amendment proposals to the 
                model code-setting and standards development 
                organizations, with supporting evidence, sufficient to 
                enable the national model building energy codes and 
                standards to meet the targets established under 
                subparagraph (B).
            ``(2) Revision of building energy use standards.--
                    ``(A) In general.--If the provisions of the IECC or 
                ASHRAE Standard 90.1 regarding building energy use are 
                revised, the Secretary shall make a determination not 
                later than 180 days after the date of the revision, on 
                whether the revision will--
                            ``(i) improve energy efficiency in 
                        buildings; and
                            ``(ii) meet the targets under paragraph 
                        (1).
                    ``(B) Codes or standards not meeting targets.--
                            ``(i) In general.--If the Secretary makes a 
                        determination under subparagraph (A)(ii) that a 
                        code or standard does not meet the targets 
                        established under paragraph (1), not later than 
                        1 year after the date of the determination, the 
                        Secretary shall provide the model code or 
                        standard developer with proposed changes that 
                        would result in a model code or standard that 
                        meets the targets.
                            ``(ii) Incorporation of changes.--On 
                        receipt of the proposed changes, the model code 
                        or standard developer shall have an additional 
                        180 days to incorporate the proposed changes 
                        into the model code or standard.
                            ``(iii) Establishment by secretary.--If the 
                        proposed changes are not incorporated into the 
                        model code or standard, the Secretary shall 
                        establish a modified code or standard that 
                        meets the established targets.
                            ``(iv) Administration.--Any code or 
                        standard modified under this subparagraph 
                        shall--
                                    ``(I) achieve a level of energy 
                                savings that is technologically 
                                feasible and life-cycle cost-effective;
                                    ``(II) be based on the latest 
                                edition of the IECC or ASHRAE Standard 
                                90.1, including any subsequent 
                                amendments, addenda, or additions, but 
                                may also consider other model codes or 
                                standards; and
                                    ``(III) serve as the baseline for 
                                the next determination under 
                                subparagraph (A)(i).
                    ``(C) Codes or standards not updated for 3 years.--
                            ``(i) In general.--If the model code or 
                        standard is not revised by a target date under 
                        paragraph (1)(B), the Secretary shall, not 
                        later than 1 year after the target date, 
                        establish a modified code or standard that 
                        meets the targets under paragraph (1)(B).
                            ``(ii) Requirements.--Any modified code or 
                        standard shall--
                                    ``(I) achieve a level of energy 
                                savings that is technologically 
                                feasible and life-cycle cost-effective;
                                    ``(II) be based on the latest 
                                revision of the IECC or ASHRAE Standard 
                                90.1, including any amendments or 
                                additions to the code or standard, but 
                                may also consider other model codes or 
                                standards; and
                                    ``(III) serve as the baseline for 
                                the next determination under 
                                subparagraph (A)(i).
                    ``(D) Administration.--The Secretary shall--
                            ``(i) provide an opportunity for public 
                        comment on targets, determinations, and 
                        modified codes and standards under this 
                        subsection; and
                            ``(ii) publish in the Federal Register 
                        notice of targets, determinations, and modified 
                        codes and standards under this subsection.
    ``(b) Establishing Minimum Building Efficiency Standard.--
            ``(1) Determination of minimum building efficiency 
        standard.--
                    ``(A) In general.--If the Secretary makes an 
                affirmative determination or establishes a modified 
                code or standard under paragraph (2), the Secretary 
                shall establish the modified code or standard as the 
                Minimum Building Efficiency Standard.
                    ``(B) State notification.--The Secretary shall 
                notify each State of the determination of the Minimum 
                Building Efficiency Standard not later than 30 days 
                after establishing or modifying the standard.
            ``(2) Initial minimum building efficiency standard.--As of 
        the date of enactment of the Practical Energy and Climate Plan 
        Act of 2010, the Minimum Building Efficiency Standard shall 
        be--
                    ``(A) the 2009 IECC for residential buildings; and
                    ``(B) the ASHRAE Standard 90.1-2007 for commercial 
                buildings.
    ``(c) State Certification of Building Energy Code Updates.--
            ``(1) Review and updating of codes by each state.--
                    ``(A) In general.--Not later than 2 years after the 
                date on which the Minimum Building Efficiency Standard 
                is established under subsection (b), each State shall 
                certify to the Secretary whether or not the State has 
                reviewed and updated the provisions of the residential 
                and commercial building codes of the State regarding 
                energy efficiency.
                    ``(B) Demonstration.--For a State to be in 
                compliance with this section, the certification under 
                subparagraph (A) shall include a demonstration that the 
                code provisions that are in effect throughout the 
                State--
                            ``(i) meet or exceed the Minimum Building 
                        Efficiency Standard; or
                            ``(ii) achieve equivalent or greater energy 
                        savings.
    ``(d) State Certification of Compliance With Building Codes.--
            ``(1) Requirement.--
                    ``(A) In general.--Not later than 3 years after the 
                date of a certification under subsection (c), each 
                State shall certify whether or not the State has--
                            ``(i) achieved compliance under paragraph 
                        (3) with the certified State building energy 
                        code or the Minimum Building Efficiency 
                        Standard; or
                            ``(ii) made significant progress under 
                        paragraph (4) toward achieving compliance with 
                        the certified State building energy code or the 
                        Minimum Building Efficiency Standard.
                    ``(B) Repeat certifications.--If a State certifies 
                progress toward achieving compliance, the State shall 
                repeat the certification each year until the State 
                certifies that the State has achieved compliance.
            ``(2) Measurement of compliance.--A certification under 
        paragraph (1) shall include documentation of the rate of 
        compliance based on--
                    ``(A) independent inspections of a random sample of 
                the new and renovated buildings covered by the code in 
                the preceding year; or
                    ``(B) an alternative method that yields an accurate 
                measure of compliance.
            ``(3) Achievement of compliance.--A State shall be 
        considered to achieve compliance under paragraph (1) if--
                    ``(A) at least 90 percent of new building space 
                covered by the code in the preceding year substantially 
                meets all the requirements of the code regarding energy 
                efficiency, or achieves equivalent or greater energy 
                savings; or
                    ``(B) the estimated excess energy use of new and 
                renovated buildings that did not meet the code in the 
                preceding year, compared to a baseline of comparable 
                buildings that meet the code, is not more than 5 
                percent of the estimated energy use of all new and 
                renovated buildings covered by the code during the 
                preceding year.
            ``(4) Significant progress toward achievement of 
        compliance.--
                    ``(A) In general.--For purposes of paragraph (1), a 
                State shall be considered to have made significant 
                progress toward achieving compliance if the State--
                            ``(i) has developed and is implementing a 
                        plan for achieving compliance not later than 8 
                        years after the date of enactment of the 
                        Practical Energy and Climate Plan Act of 2010, 
                        assuming continued adequate funding, including 
                        active training and enforcement programs;
                            ``(ii) after 1 or more years of adequate 
                        funding, has demonstrated progress, in 
                        conformance with the plan described in clause 
                        (i), toward compliance;
                            ``(iii) after 5 or more years of adequate 
                        funding, meets the requirements of paragraph 
                        (3) if `80 percent' is substituted for `90 
                        percent' or `10 percent' is substituted for `5 
                        percent'; and
                            ``(iv) has not had more than 8 years of 
                        adequate funding.
                    ``(B) Adequate funding.--For purposes of this 
                paragraph, funding shall be considered adequate if the 
                Federal Government provides to the States at least 
                $50,000,000 for a fiscal year in funding and support 
                for development and implementation of State building 
                energy codes, including for training and enforcement.
                    ``(C) Technical assistance to states.--The 
                Secretary shall make available technical assistance to 
                States to implement this section, including procedures 
                and technical analysis for States--
                            ``(i) to demonstrate that the code 
                        provisions of the States achieve equivalent or 
                        greater energy savings than the Minimum 
                        Building Efficiency Standard;
                            ``(ii) to document the rate of compliance 
                        with a building energy code; and
                            ``(iii) to improve and implement State 
                        residential and commercial building energy 
                        efficiency codes.
                    ``(D) Voluntary advanced codes and standards.--
                            ``(i) In general.--The Secretary shall 
                        support the development of voluntary advanced 
                        model codes and standards for residential and 
                        commercial buildings that achieve energy 
                        savings of at least 30 percent compared to the 
                        Minimum Building Efficiency Standard, for use 
                        in--
                                    ``(I) building design;
                                    ``(II) voluntary and market 
                                transformation programs;
                                    ``(III) incentive criteria; and
                                    ``(IV) voluntary adoption by 
                                States.
                            ``(ii) Updates.--The voluntary advanced 
                        model codes and standards shall be updated at 
                        least once every 3 years.
    ``(e) Compliance.--
            ``(1) Validation of certification.--
                    ``(A) In general.--Subject to subparagraph (B), not 
                later than 60 days after the date of receipt of 
                certification required by subsection (c), the Secretary 
                shall inform the submitting State in writing of whether 
                the Secretary validates the certification and, if not 
                validated, the reasons for not validating the 
                certification as submitted.
                    ``(B) Deferral.--On the request of the State, the 
                Secretary may defer the validation decision for an 
                additional 90 days.
                    ``(C) Noncompliance.--Any State for which the 
                Secretary has not accepted a certification by a 
                deadline under subsection (c) or (d) shall be 
                considered out of compliance with this section.
            ``(2) Local government.--In any State that is out of 
        compliance with this section, a local government may be 
        considered in compliance with this section by meeting the 
        certification requirements under subsections (c) and (d).
            ``(3) Annual reports by secretary.--
                    ``(A) In general.--The Secretary shall annually 
                submit to Congress, and publish in the Federal 
                Register, a report that describes--
                            ``(i) the status of Minimum Building 
                        Efficiency Standards;
                            ``(ii) the status of code adoption and 
                        compliance in the States; and
                            ``(iii) implementation of this section.
                    ``(B) Impacts.--The report shall include estimates 
                of impacts of past action under this section, and 
                potential impacts of further action, on lifetime energy 
                use by buildings and resulting energy costs to 
                individuals and businesses.
            ``(4) Consideration in grant process.--The Secretary shall 
        consider as a factor of any grants to be awarded by the 
        Department to States whether or not the State has achieved 
        compliance or is making significant progress towards achieving 
        compliance under paragraphs (3) and (4) of subsection (d).
    ``(f) Availability of Implementation Assistance Funding.--
            ``(1) In general.--
                    ``(A) Requirement.--The Secretary shall provide 
                implementation assistance funding to States and local 
                governments to implement this section, and to improve 
                and implement State residential and commercial building 
                energy efficiency codes, including increasing and 
                verifying compliance with the codes and training of 
                State and local building code officials.
                    ``(B) State actions.--In determining whether, and 
                in what amount, to provide implementation assistance 
                funding under this subsection, the Secretary shall 
                consider the actions proposed by the State--
                            ``(i) to implement this section;
                            ``(ii) to improve and implement residential 
                        and commercial building energy efficiency 
                        codes; and
                            ``(iii) to promote building energy 
                        efficiency through the use of the codes.
            ``(2) Additional funding.--Additional funding shall be 
        provided under this subsection for implementation of a plan to 
        achieve and document at least a 90-percent rate of compliance 
        with residential and commercial building energy efficiency 
        codes, based on energy performance--
                    ``(A) to a State that has adopted and is 
                implementing, on a statewide basis--
                            ``(i) a residential building energy 
                        efficiency code that meets or exceeds the 
                        requirements of the 2009 IECC, or any 
                        succeeding version of that code that has 
                        received an affirmative determination from the 
                        Secretary under subsection (a)(2)(A)(i); and
                            ``(ii) a commercial building energy 
                        efficiency code that meets or exceeds the 
                        requirements of the ASHRAE Standard 90.1-2007, 
                        or any succeeding version of that standard that 
                        has received an affirmative determination from 
                        the Secretary under subsection (a)(2)(A)(i); or
                    ``(B) in a State in which there is no statewide 
                energy code for either residential buildings or 
                commercial buildings, or in which State codes fail to 
                comply with subparagraph (A), to a local government 
                that has adopted and is implementing residential and 
                commercial building energy efficiency codes, as 
                described in subparagraph (A).
            ``(3) Training.--Of the amounts made available under this 
        subsection, the State may use amounts required, but not to 
        exceed $500,000 per State, to train State and local building 
        code officials to implement and enforce codes described in 
        paragraph (2).
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection--
                    ``(A) $300,000,000 for each of fiscal years 2011 
                through 2015; and
                    ``(B) such sums as are necessary for fiscal year 
                2016 and each fiscal year thereafter.''.
    (b) Definition of IECC.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) is amended by adding at the end the 
following:
            ``(17) IECC.--The term `IECC' means the International 
        Energy Conservation Code.''.

                     Subtitle B--Federal Buildings

SEC. 211. ENERGY EFFICIENT FEDERAL BUILDINGS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended--
            (1) by redesignating the second subsection (f) (relating to 
        large capital energy investments) as subsection (g); and
            (2) by adding at the end the following:
    ``(h) Energy Efficient Federal Buildings.--
            ``(1) In general.--To the maximum extent practicable, each 
        Federal agency shall ensure that any new Federal building is 
        designed in a manner to enhance energy efficiency, including--
                    ``(A) by complying with paragraphs (2) and (3); and
                    ``(B) by identifying and analyzing impacts from 
                energy usage and alternative energy sources in all 
                environmental impact statements or similar analyses 
                required under the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.) for proposals covering 
                new or expanded Federal facilities.
            ``(2) First stage.--To the maximum extent practicable, each 
        Federal agency shall ensure that any Federal building that 
        enters the design phase on or after January 1, 2012--
                    ``(A) is designed to exceed national building 
                performance standards;
                    ``(B) makes appropriate use of cost-effective, 
                innovative technologies and strategies to minimize 
                consumption of energy, water, and materials; and
                    ``(C) is located in accordance with a process that 
                considers sites with convenient access to public 
                transportation alternatives.
            ``(3) Second stage.--To the maximum extent practicable, 
        each Federal agency shall ensure that any Federal building that 
        enters the design phase on or after January 1, 2020, is 
        designed to achieve net-zero energy use by January 1, 2030.''.

        Subtitle C--Homes and Buildings Energy Retrofits Program

SEC. 221. DEFINITIONS.

    In this subtitle:
            (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
            (2) Direct loan.--The term ``direct loan'' has the meaning 
        given the term in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (3) Loan guarantee.--The term ``loan guarantee'' has the 
        meaning given the term in section 502 of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a).
            (4) Program.--The term ``Program'' means the Homes and 
        Buildings Energy Retrofits Program established by section 242.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Security.--The term ``security'' has the meaning given 
        the term in section 2 of the Securities Act of 1933 (15 U.S.C. 
        77b).
            (7) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 222. HOMES AND BUILDINGS ENERGY RETROFITS PROGRAM.

    (a) Establishment.--There is established in the Department of 
Energy a program to be known as the Homes and Buildings Energy 
Retrofits Program, which shall have annual target energy efficiency 
retrofit rates of--
            (1) 5 percent for homes; and
            (2) 2 percent for commercial buildings.
    (b) Eligibility Criteria.--
            (1) In general.--In administering the Program, the 
        Secretary shall establish eligibility criteria for applicants 
        for financial assistance under subsection (c) who can offer 
        financial products and programs consistent with the purposes of 
        this subtitle.
            (2) Criteria.--Criteria for applicants shall--
                    (A) take into account--
                            (i) expected energy savings;
                            (ii) percentage electricity rate increases 
                        in areas to be served by the applicant that are 
                        attributable to implementation of the Federal 
                        diverse energy standard;
                            (iii) the number and type of buildings that 
                        can be served by the applicant, the size of the 
                        potential market, and the scope of the program 
                        (in terms of measures or technologies to be 
                        used);
                            (iv) the ability of the applicant to 
                        successfully execute the proposed program and 
                        maintain the performance of the proposed 
                        projects and investments;
                            (v) financial criteria, as applicable, 
                        including the ability of the applicant to raise 
                        private capital or other sources of funds for 
                        the proposed program;
                            (vi) criteria that enable the Secretary to 
                        determine sound program design, including--
                                    (I) an assurance of credible energy 
                                efficiency or renewable energy 
                                generation performance; and
                                    (II) financial product or program 
                                design that effectively reduces 
                                barriers posed by traditional financing 
                                programs;
                            (vii) such criteria, standards, guidelines, 
                        and mechanisms as will enable the Secretary, to 
                        the maximum extent practicable, to communicate 
                        to program sponsors and originators, servicers, 
                        and sellers of financial obligations the 
                        eligibility of loans for resale;
                            (viii) the ability of the applicant to 
                        report relevant data on program performance; 
                        and
                            (ix) the ability of the applicant to use 
                        incentives or marketing techniques that are 
                        likely to result in successful market 
                        penetration; and
                    (B) encourage--
                            (i) use of technologies that are either 
                        well-established or new, but demonstrated to be 
                        reliable;
                            (ii) applicants that can offer building 
                        owners or lessees payment plans generally 
                        designed to permit the combination of energy 
                        payments and assessments or charges from the 
                        installation or payments associated with 
                        financing to be lower than the energy payments 
                        prior to installing energy efficiency measures 
                        or on-site renewable energy technologies;
                            (iii) applicants that will use repayment 
                        mechanisms convenient for building owners, such 
                        as tax-increment financing, special tax 
                        districts, on-utility-bill repayment, or other 
                        mechanisms;
                            (iv) applicants that can provide 
                        convenience for building owners by combining 
                        participation in the lending program with--
                                    (I) processing for tax credits and 
                                other incentives; and
                                    (II) technical assistance in 
                                selecting and working with vendors to 
                                provide energy efficiency measures or 
                                on-site renewable energy generation 
                                systems;
                            (v) applicants the projects of which will 
                        use contractors that hire within a 50-mile 
                        radius of the project, or as close as is 
                        practicable;
                            (vi) applicants that will use materials and 
                        technologies manufactured in the United States;
                            (vii) partnerships with or other 
                        involvement of State workforce investment 
                        boards, labor organizations, community-based 
                        organizations, State-approved apprenticeship 
                        programs, and other job training entities; and
                            (viii) applicants that can provide 
                        financing programs or financial products that 
                        mitigate barriers other than the initial 
                        expense of installing measures or technologies, 
                        such as unfavorable lease terms.
            (3) Diverse portfolio.--In establishing criteria and 
        selecting applicants to receive financial assistance under 
        subsection (c), the Secretary shall select a portfolio of 
        investments that reaches a diversity of building owners and 
        lessees, including--
                    (A) individual homeowners or lessees;
                    (B) multifamily apartment building owners or 
                lessees;
                    (C) condominium owners associations;
                    (D) commercial building owners or lessees, 
                including multi-tenant commercial properties;
                    (E) industrial building owners or lessees; and
                    (F) schools, hospitals, and other buildings 
                designated by the Secretary.
    (c) Financial Assistance.--
            (1) In general.--For applicants determined to be eligible 
        under criteria established under subsection (b), the Secretary 
        may provide financial assistance in the form of direct loans, 
        letters of credit, loan guarantees, insurance products, other 
        credit enhancements or debt instruments (including 
        securitization or indirect credit support), or other financial 
        products to promote the widespread deployment of, and mobilize 
        private sector support of credit and investment institutions 
        for, energy efficiency measures and on-site renewable energy 
        generation systems in buildings.
            (2) Financial products.--The Secretary--
                    (A) in cooperation with Federal, State, local, and 
                private sector entities, shall develop debt instruments 
                that provide for the aggregation of, or directly 
                aggregate, programs for the deployment of energy 
                efficiency measures and on-site renewable energy 
                generation systems on a scale appropriate for 
                residential, commercial, or industrial applications; 
                and
                    (B) may insure, guarantee, purchase, and make 
                commitments to purchase any debt instrument associated 
                with the deployment of clean energy technologies 
                (including subordinated securities) for the purpose of 
                enhancing the availability of private financing for the 
                deployment of energy efficiency measures and on-site 
                renewable energy generation systems.
            (3) Application review.--
                    (A) In general.--To the maximum extent practicable 
                and consistent with sound business practices, the 
                Secretary shall seek to expedite reviews of 
                applications for credit support under this subtitle in 
                order to communicate to applicants in a timely manner 
                the likelihood of support so that the applicants can 
                seek private capital in order to receive final 
                approval.
                    (B) Mechanisms.--In carrying out this paragraph, 
                the Secretary shall consider using mechanisms such as--
                            (i) a system for conditional pre-approval 
                        that informs applicants that final applicants 
                        will be approved, if established conditions are 
                        met;
                            (ii) clear guidelines that communicate to 
                        applicants what level of performance on 
                        eligibility criteria will ensure approval for 
                        credit support or resale;
                            (iii) in the case of an applicant portfolio 
                        of more than 300 loans or other financial 
                        arrangement, an expedited review based on 
                        statistical sampling to ensure that the loan or 
                        other financial arrangement meets the 
                        eligibility criteria; and
                            (iv) in the case of an applicant with a 
                        demonstrated track record with respect to 
                        successfully originating eligible loans or 
                        other financial arrangements and who meets 
                        appropriate other criteria determined by the 
                        Secretary, a system for delegating 
                        responsibility for meeting eligibility criteria 
                        that includes appropriate protections such as 
                        buy-back mechanisms in the event criteria are 
                        determined not to have been met.
                    (C) Disposition of debt or interest.--The Secretary 
                may acquire, hold, and sell or otherwise dispose of, 
                pursuant to commitments or otherwise, any debt 
                associated with the deployment of clean energy 
                technologies or interest in the debt.
                    (D) Pricing.--
                            (i) In general.--The Secretary may 
                        establish requirements, and impose charges or 
                        fees, which may be regarded as elements of 
                        pricing, for different classes of applicants, 
                        originators, sellers, servicers, or services.
                            (ii) Classification of applicants, 
                        originators, sellers and servicers.--For the 
                        purpose of clause (i), the Secretary may 
                        classify applicants, originators, sellers and 
                        servicers as necessary to promote transparency 
                        and liquidity and properly characterize the 
                        risk of default.
                    (E) Secondary market support.--
                            (i) In general.--The Secretary may lend on 
                        the security of, and make commitments to lend 
                        on the security of, any debt that the Secretary 
                        has insured, guaranteed, issued or is 
                        authorized to purchase under this section.
                            (ii) Authorized actions.--On such terms and 
                        conditions as the Secretary may prescribe, the 
                        Secretary may--
                                    (I) give security;
                                    (II) insure;
                                    (III) guarantee;
                                    (IV) purchase;
                                    (V) sell;
                                    (VI) pay interest or other return; 
                                and
                                    (VII) issue notes, debentures, 
                                bonds, or other obligations or 
                                securities.
                    (F) Lending activities.--
                            (i) In general.--The Secretary shall 
                        determine--
                                    (I) the volume of the lending 
                                activities of the Program; and
                                    (II) the types of loan ratios, risk 
                                profiles, interest rates, maturities, 
                                and charges or fees in the secondary 
                                market operations of the Program.
                            (ii) Objectives.--Determinations under 
                        clause (i) shall be consistent with the 
                        objectives of--
                                    (I) providing an attractive 
                                investment environment for programs 
                                that install energy efficiency measures 
                                or on-site renewable energy generation 
                                technologies;
                                    (II) making the operations of the 
                                Program self-supporting over a 
                                reasonable time frame;
                                    (III) encouraging, and not crowding 
                                out, reasonably priced private 
                                financing mechanisms and institutions; 
                                and
                                    (IV) advancing the goals 
                                established under this subtitle.
                    (G) Exempt securities.--All securities issued, 
                insured, or guaranteed by the Secretary shall, to the 
                same extent as securities that are direct obligations 
                of or obligations guaranteed as to principal or 
                interest by the United States, be considered to be 
                exempt securities within the meaning of the laws 
                administered by the Securities and Exchange Commission.

SEC. 223. GENERAL PROVISIONS.

    (a) Periodic Reports.--Not later than 1 year after commencement of 
operation of the Program and at least biannually thereafter, the 
Secretary shall submit to the Committee on Energy and Natural Resources 
of the Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that includes a description of the Program in 
meeting the purpose and goals established by or pursuant to this 
subtitle.
    (b) Audits by the Comptroller General.--
            (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of the Program shall 
        be subject to audit by the Comptroller General of the United 
        States under such rules and regulations as may be prescribed by 
        the Comptroller General.
            (2) Access.--The representatives of the Government 
        Accountability Office shall--
                    (A) have access to the personnel and to all books, 
                accounts, documents, records (including electronic 
                records), reports, files, and all other papers, 
                automated data, things, or property belonging to, under 
                the control of, or in use by the Program, or any agent, 
                representative, attorney, advisor, or consultant 
                retained by the Program, and necessary to facilitate 
                the audit;
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians;
                    (C) be authorized to obtain and duplicate any such 
                books, accounts, documents, records, working papers, 
                automated data and files, or other information relevant 
                to the audit without cost to the Comptroller General; 
                and
                    (D) have the right of access of the Comptroller 
                General to such information pursuant to section 716(c) 
                of title 31, United States Code.
            (3) Assistance and cost.--
                    (A) In general.--For the purpose of conducting an 
                audit under this subsection, the Comptroller General 
                may, in the discretion of the Comptroller General, 
                employ by contract, without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5), professional 
                services of firms and organizations of certified public 
                accountants for temporary periods or for special 
                purposes.
                    (B) Reimbursement.--
                            (i) In general.--On the request of the 
                        Comptroller General, the Secretary shall 
                        reimburse the General Accountability Office for 
                        the full cost of any audit conducted by the 
                        Comptroller General under this subsection.
                            (ii) Crediting.--Such reimbursements 
                        shall--
                                    (I) be credited to the 
                                appropriation account entitled 
                                ``Salaries and Expenses, Government 
                                Accountability Office'' at the time at 
                                which the payment is received; and
                                    (II) remain available until 
                                expended.

SEC. 224. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$2,000,000,000.

                Subtitle D--Rural Energy Savings Program

SEC. 231. RURAL ENERGY SAVINGS PROGRAM.

    Title VI of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7901 note et seq.) is amended by adding at the end the 
following:

``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) any public power district, public utility 
                district, or similar entity, or any electric 
                cooperative described in sections 501(c)(12) or 
                1381(a)(2)(C) of the Internal Revenue Code of 1986, 
                that borrowed and repaid, prepaid, or is paying an 
                electric loan made or guaranteed by the Rural Utilities 
                Service (or any predecessor agency); or
                    ``(B) any entity primarily owned or controlled by 
                an entity or entities described in subparagraph (A).
            ``(2) Energy efficiency measures.--The term `energy 
        efficiency measures' means, for or at property served by an 
        eligible entity, structural improvements and investments in 
        cost-effective, commercial off-the-shelf technologies to reduce 
        home, barn, and permanent farm structure energy use.
            ``(3) Qualified consumer.--The term `qualified consumer' 
        means a consumer served by an eligible entity that has the 
        ability to repay a loan made under subsection (c), as 
        determined by an eligible entity.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Utilities Service.
    ``(b) Loans and Grants to Eligible Entities.--
            ``(1) Loans authorized.--Subject to paragraph (2), the 
        Secretary shall make loans to eligible entities that agree to 
        use the loan funds to make loans to qualified consumers as 
        described in subsection (c) for the purpose of implementing 
        energy efficiency measures.
            ``(2) List, plan, and measurement and verification 
        required.--
                    ``(A) In general.--As a condition to receiving a 
                loan or grant under this subsection, an eligible entity 
                shall--
                            ``(i) establish a list of energy efficiency 
                        measures that is expected to decrease energy 
                        use or costs of qualified consumers;
                            ``(ii) prepare an implementation plan for 
                        use of the loan funds; and
                            ``(iii) provide for appropriate measurement 
                        and verification to ensure the effectiveness of 
                        the energy efficiency loans made by the 
                        eligible entity and that there is no conflict 
                        of interest in the carrying out of this 
                        section.
                    ``(B) Revision of list of energy efficiency 
                measures.--An eligible entity may update the list 
                required under subparagraph (A)(i) to account for newly 
                available efficiency technologies, subject to the 
                approval of the Secretary.
                    ``(C) Existing energy efficiency programs.--An 
                eligible entity that, on or before the date of the 
                enactment of this section or within 60 days after such 
                date, has already established an energy efficiency 
                program for qualified consumers may use an existing 
                list of energy efficiency measures, implementation 
                plan, or measurement and verification system of that 
                program to satisfy the requirements of subparagraph (A) 
                if the Secretary determines the list, plans, or systems 
                are consistent with the purposes of this section.
            ``(3) No interest.--A loan under this subsection shall bear 
        no interest.
            ``(4) Repayment.--A loan under this subsection shall be 
        repaid not more than 10 years from the date on which an advance 
        on the loan is first made to the eligible entity.
            ``(5) Loan fund advances.--The Secretary may provide 
        eligible entities with a schedule of not more than 10 years for 
        advances of loan funds, except that any advance of loan funds 
        to an eligible entity in any single year shall not exceed 50 
        percent of the approved loan amount.
            ``(6) Jump-start grants.--The Secretary may make grants 
        available to eligible entities selected to receive a loan under 
        this subsection in order to assist an eligible entity to defray 
        costs, including costs of contractors for equipment and labor, 
        except that no eligible entity may receive a grant amount that 
        is greater than four percent of the loan amount.
    ``(c) Loans to Qualified Consumers.--
            ``(1) Terms of loans.--Loans made by an eligible entity to 
        qualified consumers using loan funds provided by the Secretary 
        under subsection (b)--
                    ``(A) may bear interest, not to exceed 3 percent, 
                to be used for purposes that include establishing a 
                loan loss reserve and to offset personnel and program 
                costs of eligible entities to provide the loans;
                    ``(B) shall finance energy efficiency measures for 
                the purpose of decreasing energy usage or costs of the 
                qualified consumer by an amount such that a loan term 
                of not more than 10 years will not pose an undue 
                financial burden on the qualified consumer, as 
                determined by the eligible entity;
                    ``(C) shall not be used to fund energy efficiency 
                measures made to personal property unless the personal 
                property--
                            ``(i) is or becomes attached to real 
                        property as a fixture; or
                            ``(ii) is a manufactured home;
                    ``(D) shall be repaid through charges added to the 
                electric bill of the qualified consumer; and
                    ``(E) shall require an energy audit by an eligible 
                entity to determine the impact of proposed energy 
                efficiency measures on the energy costs and consumption 
                of the qualified consumer.
            ``(2) Contractors.--In addition to any other qualified 
        general contractor, eligible entities may serve as general 
        contractors.
    ``(d) Measurement and Verification, Training, and Technical 
Assistance.--
            ``(1) Contract authorized.--Not later than 90 days after 
        the date of enactment of this section, the Secretary--
                    ``(A) shall establish a plan for measurement and 
                verification, training, and technical assistance of the 
                program; and
                    ``(B) may enter into 1 or more contracts for the 
                purposes of--
                            ``(i) providing measurement and 
                        verification activities; and
                            ``(ii) developing a program to provide 
                        technical assistance and training to the 
                        employees of eligible entities to carry out 
                        this section.
            ``(2) Use of subcontractors authorized.--A qualified entity 
        that enters into a contract under paragraph (1) may use 
        subcontractors to assist the qualified entity in performing the 
        contract.
    ``(e) Fast Start Demonstration Projects.--
            ``(1) Demonstration projects required.--The Secretary shall 
        enter into agreements with eligible entities (or groups of 
        eligible entities) that have energy efficiency programs 
        described in subsection (b)(2)(C) to establish energy 
        efficiency loan demonstration projects consistent with the 
        purposes of this section.
            ``(2) Evaluation criteria.--In determining which eligible 
        entities to award loans under this section, the Secretary shall 
        take into consideration entities that--
                    ``(A) implement approaches to energy audits or 
                investments in energy efficiency measures that yield 
                measurable and predictable savings;
                    ``(B) use measurement and verification processes to 
                determine the effectiveness of energy efficiency loans 
                made by eligible entities;
                    ``(C) include training for employees of eligible 
                entities, including any contractors of such entities, 
                to implement or oversee the activities described in 
                subparagraphs (A) and (B);
                    ``(D) provide for the participation of a majority 
                of eligible entities in a State;
                    ``(E) reduce the need for generating capacity;
                    ``(F) provide efficiency loans to--
                            ``(i) not fewer than 20,000 consumers, in 
                        the case of a single eligible entity; or
                            ``(ii) not fewer than 80,000 consumers, in 
                        the case of a group of eligible entities; and
                    ``(G) serve areas where a large percentage of 
                consumers reside--
                            ``(i) in manufactured homes; or
                            ``(ii) in housing units that are more than 
                        50 years old.
            ``(3) Deadline for implementation.--The agreements required 
        by paragraph (1) shall be entered into not later than 90 days 
        after the date of enactment of this section.
            ``(4) Effect on availability of loans nationally.--Nothing 
        in this subsection shall delay the availability of loans to 
        eligible entities on a national basis beginning not later than 
        180 days after the date of enactment of this section.
            ``(5) Additional demonstration project authority.--
                    ``(A) In general.--The Secretary may conduct 
                demonstration projects in addition to the project 
                required by paragraph (1).
                    ``(B) Inapplicability of certain criteria.--The 
                additional demonstration projects may be carried out 
                without regard to subparagraphs (D), (F), or (G) of 
                paragraph (2).
    ``(f) Additional Authority.--The authority provided in this section 
is in addition to any authority of the Secretary to offer loans or 
grants under any other law.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary for fiscal year 2010 $993,000,000 to carry out 
        this section, to remain available until expended.
            ``(2) Amounts for loans, grants, staffing.--Of the amounts 
        appropriated pursuant to the authorization of appropriations in 
        paragraph (1), the Secretary shall make available--
                    ``(A) $755,000,000 for the purpose of covering the 
                cost of direct loans to eligible entities under 
                subsection (b) to subsidize gross obligations in the 
                principal amount of not to exceed $4,900,000,000;
                    ``(B) $27,000,000 for activities under subsection 
                (d);
                    ``(C) $200,000,000 for jump-start grants authorized 
                by subsection (b)(6); and
                    ``(D) $1,100,000 for each of fiscal years 2010 
                through 2019 for 10 additional employees of the Rural 
                Utilities Service to carry out this section.
    ``(h) Effective Period.--Subject to subsection (h)(1) and except as 
otherwise provided in this section, the loans, grants, and other 
expenditures required to be made under this section are authorized to 
be made during each of fiscal years 2010 through 2015.
    ``(i) Regulations.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, not later than 180 days after the date of enactment 
        of this section, the Secretary shall promulgate such 
        regulations as are necessary to implement this section.
            ``(2) Procedure.--The promulgation of the regulations and 
        administration of this section shall be made without regard 
        to--
                    ``(A) chapter 35 of title 44, United States Code 
                (commonly known as the `Paperwork Reduction Act'); and
                    ``(B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking.
            ``(3) Congressional review of agency rulemaking.--In 
        carrying out this section, the Secretary shall use the 
        authority provided under section 808 of title 5, United States 
        Code.
            ``(4) Interim regulations.--Notwithstanding paragraphs (1) 
        and (2), to the extent regulations are necessary to carry out 
        any provision of this section, the Secretary shall implement 
        such regulations through the promulgation of an interim 
        rule.''.

                Subtitle E--Industrial Energy Efficiency

SEC. 241. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN 
              PROGRAM.

    Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 
6371h-1) is amended--
            (1) in the section heading, by inserting ``and industry'' 
        before the period at the end;
            (2) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (3) by inserting after subsection (g) the following:
    ``(h) State Partnership Industrial Energy Efficiency Revolving Loan 
Program.--
            ``(1) In general.--The Secretary shall carry out a program 
        under which the Secretary shall provide grants to eligible 
        lenders to pay the Federal share of creating a revolving loan 
        program under which loans are provided to commercial and 
        industrial manufacturers to implement commercially available 
        technologies or processes that significantly--
                    ``(A) reduce systems energy intensity, including 
                the use of energy intensive feedstocks; and
                    ``(B) improve the industrial competitiveness of the 
                United States.
            ``(2) Eligible lenders.--To be eligible to receive cost-
        matched Federal funds under this subsection, a lender shall--
                    ``(A) be a community and economic development 
                lender that the Secretary certifies meets the 
                requirements of this subsection;
                    ``(B) lead a partnership that includes 
                participation by, at a minimum--
                            ``(i) a State government agency; and
                            ``(ii) a private financial institution or 
                        other provider of loan capital;
                    ``(C) submit an application to the Secretary, and 
                receive the approval of the Secretary, for cost-matched 
                Federal funds to carry out a loan program described in 
                paragraph (1); and
                    ``(D) ensure that non-Federal funds are provided to 
                match, on at least a dollar-for-dollar basis, the 
                amount of Federal funds that are provided to carry out 
                a revolving loan program described in paragraph (1).
            ``(3) Award.--The amount of cost-matched Federal funds 
        provided to an eligible lender shall not exceed $100,000,000 
        for any fiscal year.
            ``(4) Recapture of awards.--
                    ``(A) In general.--An eligible lender that receives 
                an award under paragraph (1) shall be required to repay 
                to the Secretary an amount of cost-match Federal funds, 
                as determined by the Secretary under subparagraph (B), 
                if the eligible lender is unable or unwilling to 
                operate a program described in this subsection for a 
                period of not less than 10 years beginning on the date 
                on which the eligible lender first receives funds made 
                available through the award.
                    ``(B) Determination by secretary.--The Secretary 
                shall determine the amount of cost-match Federal funds 
                that an eligible lender shall be required to repay to 
                the Secretary under subparagraph (A) based on the 
                consideration by the Secretary of--
                            ``(i) the amount of non-Federal funds 
                        matched by the eligible lender;
                            ``(ii) the amount of loan losses incurred 
                        by the revolving loan program described in 
                        paragraph (1); and
                            ``(iii) any other appropriate factor, as 
                        determined by the Secretary.
                    ``(C) Use of recaptured cost-match federal funds.--
                The Secretary may distribute to eligible lenders under 
                this subsection each amount received by the Secretary 
                under this paragraph.
            ``(5) Eligible projects.--A program for which cost-matched 
        Federal funds are provided under this subsection shall be 
        designed to accelerate the implementation of industrial and 
        commercial applications of technologies or processes that--
                    ``(A) improve energy efficiency;
                    ``(B) enhance the industrial competitiveness of the 
                United States; and
                    ``(C) achieve such other goals as the Secretary 
                determines to be appropriate.
            ``(6) Evaluation.--The Secretary shall, to the maximum 
        extent practicable, evaluate applications for cost-matched 
        Federal funds under this subsection taking into consideration--
                    ``(A) the description of the program to be carried 
                out with the cost-matched Federal funds;
                    ``(B) the commitment to provide non-Federal funds 
                in accordance with paragraph (2)(D);
                    ``(C) program sustainability;
                    ``(D) the capability of the applicant;
                    ``(E) the quantity of energy savings or energy 
                feedstock minimization;
                    ``(F) percentage electricity rate increases in 
                areas to be served by the applicant that are 
                attributable to implementation of the Federal diverse 
                energy standard established under section 610 of the 
                Public Utility Regulatory Policies Act of 1978;
                    ``(G) the ability to fund energy efficient projects 
                on a timely basis after the date of the grant award; 
                and
                    ``(H) such other factors as the Secretary 
                determines appropriate.
            ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $500,000,000 
        for each of fiscal years 2010 through 2014.''.

        Subtitle F--Appliance and Equipment Efficiency Standards

SEC. 251. APPLIANCE AND EQUIPMENT EFFICIENCY.

    (a) Coverage.--Section 322(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6292(a)) is amended--
            (1) by designating paragraph (20) as paragraph (21); and
            (2) by inserting after paragraph (19) the following:
            ``(20) Computer monitors and displays.''.
    (b) Energy Conservation Standards.--Section 325(l) of the Energy 
Policy and Conservation Act (42 U.S.C. 6295(l)) is amended--
            (1) by striking ``paragraph (19)'' each place it appears 
        and inserting ``paragraph (21)'';
            (2) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``may'' and inserting ``shall''; and
            (3) in paragraph (3), insert ``and computer monitors and 
        displays'' after ``television sets''.
    (c) Definition of Industrial Equipment.--Section 340(2)(B) of the 
Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended--
            (1) in clause (xi), by striking ``and'' at the end;
            (2) in clause (xii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(xiii) other equipment.''.
    (d) Covered Equipment.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the 
following:
    ``(g) Covered Equipment.--The Secretary shall establish an energy 
conservation standard for each type or class of covered equipment.''.
    (e) Report on Efficiency Standards for Additional Consumer Products 
and Commercial and Industrial Equipment.--Not later than 1 year after 
the date of enactment of this Act, the Secretary of Energy shall submit 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate a 
report that identifies--
            (1) consumer products and commercial and industrial 
        equipment not covered by efficiency standards (as of the date 
        of enactment of this Act) that have significant national energy 
        savings potential, as determined by the Secretary;
            (2) levels of potential energy savings for products and 
        equipment identified under paragraph (1);
            (3) which of the products and equipment identified under 
        paragraph (1) are likely, prima facie, to qualify as covered 
        under authority of the Secretary in existence on the date of 
        enactment of this Act, and a plan for formal review of those 
        products and equipment under existing authority; and
            (4) which of the products identified under paragraph (1) 
        require additional authority for the Secretary to be covered.

SEC. 252. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    Section 553(b) of the National Energy Conservation Policy Act (42 
U.S.C. 8259b(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Requirement.--Except as provided in paragraph (2), 
        beginning on the date of enactment of the Practical Energy and 
        Climate Plan Act of 2010, the head of an agency shall procure, 
        for not less than 95 percent of the new contract actions, task 
        orders, and delivery orders for products and services (other 
        than for weapon systems) for the agency--
                    ``(A) an Energy Star rated product or product with 
                better energy efficiency than an Energy Star rated 
                product;
                    ``(B) a FEMP designated product;
                    ``(C) if neither an Energy Star product nor a FEMP 
                designated product exist, a similarly designated 
                product, as determined by the head of the agency; or
                    ``(D) a designated innovative product to enhance 
                energy savings or production of on-site energy in 
                furtherance of technology demonstration and 
                commercialization, as determined by the head of the 
                agency.''; and
            (2) by adding at the end the following:
            ``(4) Best management practices.--The head of an agency 
        shall implement best management practices for the energy-
        efficient management of servers and Federal data centers of the 
        agency.''.

                   TITLE III--DIVERSE DOMESTIC POWER

SEC. 301. FEDERAL DIVERSE ENERGY STANDARD.

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

``SEC. 610. FEDERAL DIVERSE ENERGY STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Advanced coal generation.--The term `advanced coal 
        generation' means the generation of electricity produced from 
        coal by a new or existing coal generating facility that 
        captures and permanently sequesters, stores (including for 
        enhanced oil recovery), or reuses (in a manner so that reuse 
        provides equivalent long-term sequestration as from 
        sequestration or storage) at least 80 percent of greenhouse 
        gases produced by the facility.
            ``(2) Base quantity of electricity.--
                    ``(A) In general.--The term `base quantity of 
                electricity' means the total quantity of electricity 
                sold by an electric utility to electric consumers in a 
                calendar year.
                    ``(B) Exclusion.--The term `base quantity of 
                electricity' does not include electricity generated by 
                a hydroelectric facility (but excluding qualified 
                hydropower) owned by an electric utility or sold under 
                contract or rate order to an electric utility to meet 
                the needs of the retail customers of the utility.
            ``(3) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at or near a 
        customer site that provides electric energy to 1 or more 
        customers for purposes other than resale other than to a 
        utility through a net metering arrangement.
            ``(4) Diverse energy.--The term `diverse energy' means 
        electric energy generated at a facility (including a 
        distributed generation facility) from--
                    ``(A) advanced coal generation;
                    ``(B) biomass;
                    ``(C) coal mine methane;
                    ``(D) end-user efficiency savings;
                    ``(E) efficiency savings in power generation;
                    ``(F) geothermal energy;
                    ``(G) landfill and biogas;
                    ``(H) marine and hydrokinetic renewable energy (as 
                defined in section 632 of the Energy Independence and 
                Security Act of 2007 (42 U.S.C. 17211));
                    ``(I) qualified hydropower;
                    ``(J) qualified nuclear energy;
                    ``(K) solar energy;
                    ``(L) waste-to-energy;
                    ``(M) wind energy; and
                    ``(N) any other energy source that will result in 
                at least a 80-percent reduction in greenhouse gas 
                emissions compared to average emissions of freely 
                emitting sources in the calendar year prior to 
                certification of the Secretary, as determined by the 
                Secretary through rulemaking.
            ``(5) End-user efficiency savings.--
                    ``(A) In general.--The term `end-user efficiency 
                savings' means--
                            ``(i) the quantity of electricity 
                        consumption avoided at a facility of an end-use 
                        consumer of electricity served by an electric 
                        utility that results from energy savings 
                        programs implemented by the electric utility; 
                        as compared to
                            ``(ii) the average electricity consumption 
                        during the preceding 5-year period.
                    ``(B) Regulations.--Not later than 180 days after 
                the date of enactment of this section, the Secretary 
                shall issue regulations to establish--
                            ``(i) procedures and standards for defining 
                        and measuring electricity savings that will be 
                        eligible for meeting requirements of the 
                        Federal diverse energy standard established 
                        under this subsection;
                            ``(ii) procedures to exclude erroneous 
                        attribution of energy savings, such as savings 
                        primarily due to factors exogenous to electric 
                        utility programs; and
                            ``(iii) procedures for independent 
                        monitoring and verification of energy 
                        efficiency savings.
                    ``(C) Retrofit programs.--The Secretary shall, to 
                the maximum extent practicable, consider actions taken 
                to obtain end-user efficiency savings as actions for 
                which assistance may be provided under the programs 
                established under sections 222 and 231 of the Practical 
                Energy and Climate Plan Act of 2010.
                    ``(D) Measurement, verification, and 
                certification.--Efficiency improvements described in 
                subparagraph (A) shall be certified by the Secretary 
                and subject to measurement and verification procedures 
                established under subparagraph (B).
            ``(6) Efficiency savings in power generation.--
                    ``(A) In general.--The term `energy savings in 
                power generation' means the quantity of electricity 
                generated for sale at an existing fossil fuel 
                generation facility that is greater than the average 
                quantity of electricity generated at the facility 
                during the preceding 5-year period that is attributable 
                to permanent efficiency improvements (such as the 
                increment of electricity output of permanent facility 
                upgrades to improve heat rate and resulting from a new 
                combined heat and power system that is attributable to 
                the facility improvements) made on or after the date of 
                enactment of this section, if there is no increase in 
                greenhouse gas emissions associated with the operation 
                of the efficiency improvements as compared to the 
                average greenhouse gas emissions during the preceding 
                3-year period.
                    ``(B) Measurement and certification.--Efficiency 
                improvements described in subparagraph (A) shall be 
                certified by the Secretary or the Commission.
            ``(7) Qualified hydropower.--
                    ``(A) In general.--The term `qualified hydropower' 
                means--
                            ``(i) additional energy generated as a 
                        result of permanent efficiency improvements or 
                        capacity additions made during the preceding 3-
                        year period beginning on or after the date of 
                        enactment of this section;
                            ``(ii) additions of capacity made to 
                        existing nonhydroelectric dams; and
                            ``(iii) new hydroelectric dams.
                    ``(B) Exclusion.--The term `qualified hydropower' 
                does not include additional energy generated as a 
                result of operational changes not directly associated 
                with efficiency improvements or capacity additions.
                    ``(C) Measurement and certification.--Efficiency 
                improvements and capacity additions described in 
                subparagraph (A) shall be--
                            ``(i) in the case of existing hydroelectric 
                        facilities, measured on the basis of the same 
                        water flow information used to determine a 
                        historic average annual generation baseline; 
                        and
                            ``(ii) in the case of existing 
                        hydroelectric and nonhydroelectric facilities, 
                        certified by the Secretary or the Commission.
            ``(8) Qualified nuclear energy.--The term `qualified 
        nuclear energy' means energy from a nuclear generating unit 
        placed in service on or after the date of enactment of this 
        section.
    ``(b) Diverse Energy Requirement.--
            ``(1) Requirement.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each electric utility that sells electricity to 
                electric consumers for a purpose other than resale 
                shall obtain a percentage of the base quantity of 
                electricity the electric utility sells to electric 
                consumers in any calendar year from diverse energy.
                    ``(B) Percentage.--Except as provided in section 
                611, the percentage obtained in a calendar year under 
                subparagraph (A) shall not be less than the amount 
                specified in the following table:

``Calendar year:                         Minimum annual percentage:
  2015 through 2019....................  15
  2020 through 2024....................  20
  2025 through 2029....................  25
  2030 through 2049....................  30
  2050.................................  50.
 

                    ``(C) Interim reports.--The Secretary shall make 
                periodic interim reports on deployment of diverse 
                energy sources, including recommendations to utilities.
            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) submitting to the Secretary diverse energy 
                credits issued under subsection (c);
                    ``(B) making alternative compliance payments to the 
                Secretary at a rate determined by the Secretary but not 
                less than 5.0 cents per kilowatt hour (as adjusted for 
                inflation under subsection (f)) if the electric utility 
                does not elect to petition the Secretary to waive the 
                requirements under subsection (d)(3)(C); or
                    ``(C) a combination of activities described in 
                subparagraphs (A) and (B).
            ``(3) Phase-in.--The Secretary shall prescribe, by 
        regulation, a reasonable phase-in of the requirements of 
        paragraph (1) as the requirements apply to an electric utility 
        that becomes subject to this section on or after January 1, 
        2013.
    ``(c) Federal Diverse Energy Credit Trading Program.--
            ``(1) In general.--Not later than January 1, 2011, the 
        Secretary shall establish a Federal diverse energy credit 
        trading program under which electric utilities shall submit to 
        the Secretary Federal diverse energy credits to certify the 
        compliance of the electric utilities with subsection (b)(1).
            ``(2) Administration.--As part of the program, the 
        Secretary shall--
                    ``(A) issue diverse energy credits to generators of 
                electric energy from diverse energy;
                    ``(B) to the extent that diverse sources of 
                electricity are used in combination with other sources 
                of energy, issue credits only to the extent that the 
                electricity generated is from diverse energy resources;
                    ``(C) issue diverse energy credits to electric 
                utilities associated with substantially similar State 
                diverse energy standard compliance mechanisms pursuant 
                to subsection (g);
                    ``(D) ensure that a kilowatt hour, including the 
                associated diverse energy credit shall be used only 
                once for purposes of compliance with this Act;
                    ``(E) ensure that, with respect to a purchaser 
                that, as of the date of enactment of this section, has 
                a purchase agreement from a diverse energy facility 
                placed in service before that date, the credit 
                associated with the generation of diverse energy under 
                the contract is issued to the purchaser of the electric 
                energy to the extent that the contract does not already 
                provide for the allocation of the Federal credit; and
                    ``(F) during any of calendar years 2015 through 
                2029, issue credits per kilowatt hour for demonstration 
                coal generation of electricity produced from coal by a 
                new or existing coal generating facility that captures 
                and permanently sequesters, stores, or reuses at least 
                65 percent of greenhouse gases produced by the 
                facility, which shall be equal to the product obtained 
                by multiplying--
                            ``(i) the kilowatt hours of electricity 
                        generated by a facility and supplied to the 
                        grid during the prior year; by
                            ``(ii) during the same year, the ratio of--
                                    ``(I) the quantity of carbon 
                                dioxide captured from the facility and 
                                sequestered; bears to
                                    ``(II) the sum of--
                                            ``(aa) the quantity of 
                                        carbon dioxide captured from 
                                        the facility and sequestered; 
                                        and
                                            ``(bb) the quantity of 
                                        carbon dioxide emitted from the 
                                        facility.
                    ``(G) Temporary waiver.--Subject to approval by the 
                Secretary, grant deferrals for a maximum of 3 years for 
                submission of diverse energy credits to comply with 
                subsection (b) upon approval of a plan--
                            ``(i) submitted by the Governor of a State 
                        that demonstrates a State program will achieve 
                        equivalent levels of diverse energy deployment 
                        and usage by the end of the deferral period; or
                            ``(ii) submitted by a utility that 
                        demonstrates, as a consequence of having 
                        facilities under construction at the time the 
                        plan is submitted, will achieve required levels 
                        of diverse energy deployment by the end of the 
                        deferral period.
            ``(3) Credit trading.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                electric utility that holds clean diverse credits in 
                excess of the quantity of credits needed to comply with 
                subsection (b) may transfer or sell the credits to 
                another electric utility in the same utility holding 
                company system or another electric utility.
                    ``(B) Limitations.--
                            ``(i) End-user energy savings.--Credits 
                        issued for end-user energy savings may not be 
                        transferred or sold outside the State in which 
                        qualified electricity savings occur.
                            ``(ii) Efficiency savings in power 
                        generation.--Credits issued for efficiency 
                        savings in power generation may not be 
                        transferred or sold outside the State in which 
                        the electricity is generated or the State in 
                        which the electricity is sold.
                            ``(iii) Intrastate trading.--Nothing in 
                        this subparagraph prohibits the trading or sale 
                        of credits within the jurisdiction of a State.
            ``(4) Delegation of market function.--
                    ``(A) In general.--The Secretary may delegate to--
                            ``(i) an appropriate market-making entity 
                        the administration of a national diverse energy 
                        credit market for purposes of creating a 
                        transparent national market for the sale or 
                        trade of diverse energy credits; and
                            ``(ii) regional entities the tracking of 
                        dispatch of diverse energy generation.
                    ``(B) Administration.--Any delegation under 
                subparagraph (A) shall ensure that the tracking and 
                reporting of information concerning the dispatch of 
                diverse energy generation is transparent, verifiable, 
                and independent of any generation or load interests 
                with obligations under this section.
    ``(d) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the requirements of subsection (b) shall be subject to a 
        civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be equal to the product obtained by multiplying--
                    ``(A) the number of kilowatt-hours of electric 
                energy sold to electric consumers in violation of 
                subsection (b); by
                    ``(B) 200 percent of the value of the alternative 
                compliance payment, as adjusted for inflation under 
                subsection (f).
            ``(3) Mitigation or waiver.--
                    ``(A) Penalty.--
                            ``(i) In general.--The Secretary may 
                        mitigate or waive a civil penalty under this 
                        subsection if the electric utility is unable to 
                        comply with subsection (b) due to a reason 
                        outside of the reasonable control of the 
                        electric utility.
                            ``(ii) Amount.--The Secretary shall reduce 
                        the amount of any penalty determined under 
                        paragraph (2) by the amount paid by the 
                        electric utility to a State for failure to 
                        comply with the requirement of a State clean or 
                        renewable energy program if the State 
                        requirement is greater than the applicable 
                        requirement of subsection (b).
                    ``(B) Requirement.--The Secretary may waive the 
                requirements of subsection (b) for a period of up to 5 
                years with respect to an electric utility if the 
                Secretary determines that the electric utility cannot 
                meet the requirements due to a hurricane, tornado, 
                fire, flood, earthquake, ice storm, or other natural 
                disaster or act of God beyond the reasonable control of 
                the utility.
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6303(d)).
    ``(e) Alternative Compliance Payments.--
            ``(1) In general.--An electric utility may satisfy the 
        requirements of subsection (b), in whole or in part, by 
        submitting in accordance with this subsection, in lieu of each 
        Federal diverse energy credit or megawatt hour of demonstrated 
        total annual electricity savings that would otherwise be due, a 
        payment equal to the amount required under subsection (b) in 
        accordance with such regulations as the Secretary may 
        promulgate.
            ``(2) Payment to state funds.--Payments made under this 
        subsection shall be made directly to the State in which the 
        electric utility is located, if the payments are deposited 
        directly into a fund within the treasury of the State for use 
        in accordance with paragraph (3).
            ``(3) Use of grants.--The Governor of any State may expend 
        amounts in a State diverse energy escrow account solely for 
        purposes of--
                    ``(A) increasing the quantity of electric energy 
                produced from a diverse energy source in the State; and
                    ``(B) offsetting the costs of carrying out this 
                section paid by electric consumers in the State through 
                energy efficiency investments.
            ``(4) Information and reports.--As a condition of providing 
        payments to a State under this subsection, the Secretary may 
        require the Governor to keep such accounts or records, and 
        furnish such information and reports, as the Secretary 
        determines are necessary and appropriate for determining 
        compliance with this subsection.
    ``(f) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2011, the Secretary shall adjust for inflation the 
rate of the alternative compliance payment under subsection (b)(2)(B).
    ``(g) State Programs.--
            ``(1) In general.--Subject to paragraph (2), nothing in 
        this section diminishes any authority of a State or political 
        subdivision of a State to adopt or enforce any law or 
        regulation respecting diverse energy or energy efficiency, or 
        the regulation of electric utilities.
            ``(2) Compliance.--Except as provided in subsection (d)(3), 
        no such law or regulation shall relieve any person of any 
        requirement otherwise applicable under this section.
            ``(3) Coordination.--The Secretary, in consultation with 
        States having such diverse energy programs, shall, to the 
        maximum extent practicable, facilitate coordination between the 
        Federal program and State programs.
            ``(4) Regulations.--
                    ``(A) In general.--The Secretary, in consultation 
                with States, shall promulgate regulations to ensure 
                that an electric utility that is subject to the 
                requirements of this section and is subject to a State 
                renewable energy or diverse energy standard receives 
                diverse energy credits if--
                            ``(i) the electric utility complies with 
                        the State standard by generating or purchasing 
                        diverse energy or renewable energy certificates 
                        or credits representing diverse energy; or
                            ``(ii) the State imposes or allows other 
                        mechanisms for achieving the State standard, 
                        including the payment of taxes, fees, 
                        surcharges, or other financial obligations.
                    ``(B) Amount of credits.--The amount of credits 
                received by an electric utility under this subsection 
                shall equal--
                            ``(i) in the case of subparagraph (A)(i), 
                        the quantity of diverse energy resulting from 
                        the generation or purchase by the electric 
                        utility of diverse energy; and
                            ``(ii) in the case of subparagraph (A)(ii), 
                        the pro rata share of the electric utility, 
                        based on the contributions to the mechanism 
                        made by the electric utility or customers of 
                        the electric utility, in the State, of the 
                        quantity of diverse energy resulting from those 
                        mechanisms.
                    ``(C) Prohibition on double counting.--The 
                regulations promulgated under this paragraph shall 
                ensure that a kilowatt-hour associated with a diverse 
                energy credit issued pursuant to this subsection shall 
                not be used for compliance with this section more than 
                once.
    ``(h) Reconsideration.--Not later than January 15, 2017, and every 
5 years thereafter, the Secretary shall review and make recommendations 
to Congress on the program established under this section.
    ``(i) Regulations.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall promulgate regulations 
implementing this section.
    ``(j) Termination of Authority.--This section and the authority 
provided by this section terminate on December 31, 2051.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) 
is amended by adding at the end of the items relating to title VI the 
following:

``Sec. 610. Federal diverse energy standard.''.

SEC. 302. FOSSIL FUEL GENERATING FACILITY RETIREMENT PROGRAM.

    (a) In General.--The Administrator of the Environmental Protection 
Agency (referred to in this section as the ``Administrator''), in 
consultation with the Secretary of Energy, shall establish an incentive 
program to permanently retire conventional coal plants with the largest 
pollution-related liabilities.
    (b) Retirement Agreement.--
            (1) In general.--Any electric generating unit that 
        voluntarily enters into a binding retirement agreement with the 
        Administrator to permanently retire the unit not later than 
        December 31, 2018, shall be eligible for regulatory relief 
        described in subsection (c).
            (2) Requirements.--The Administrator shall establish such 
        requirements as are necessary to ensure that a retirement 
        agreement described in paragraph (1) establishes a legally 
        binding requirement that the electric generating unit subject 
        to the agreement does not operate after January 1, 2019.
            (3) Prohibitions.--It shall be unlawful for any person to 
        operate an electric generating unit subject to a retirement 
        agreement under this section--
                    (A) after January 1, 2019; or
                    (B) in excess of the average annual electrical 
                production of the electric generating unit during the 
                3-year period ending on the date of enactment of this 
                Act.
            (4) Waiver.--The Administrator may temporarily waive any 
        provision of this subsection if the Administrator determines 
        that national or regional energy disruptions will occur if a 
        waiver is not provided.
    (c) Regulatory Relief.--The early retirement incentive program 
established under this section shall authorize an alternative 
compliance mechanism for any regulation of electric generating units 
pursuant to--
            (1) new source review requirements under the Clean Air Act 
        (42 U.S.C. 7401 et seq.);
            (2) existing unit performance standards for greenhouse gas 
        emissions under section 111(d) of the Clean Air Act (42 U.S.C. 
        7411(d));
            (3) regulation of hazardous air pollutants under section 
        112 of the Clean Air Act (42 U.S.C. 7412);
            (4) the final rule entitled ``Regional Haze Regulations and 
        Guidelines for Best Available Retrofit Technology (BART) 
        Determinations'' (70 Fed. Reg. 39104 (July 6, 2005));
            (5) regulation of coal combustion waste water discharges 
        from thermal generating units under title III of the Federal 
        Water Pollution Control Act (33 U.S.C. 1311 et seq.); and
            (6) regulation of cooling water intake structures under 
        section 316(b) of the Federal Water Pollution Control Act (33 
        U.S.C. 1326(b)).

SEC. 303. FUNDING FOR LOAN GUARANTEES FOR ADVANCED NUCLEAR ENERGY 
              FACILITIES.

    (a) In General.--Section 1704 of the Energy Policy Act of 2005 (42 
U.S.C. 16514) is amended--
            (1) in the section heading, by striking ``authorization of 
        appropriations'' and inserting ``funding'';
            (2) in subsection (a), in the subsection heading, by 
        striking ``In General'' and inserting ``Authorization of 
        Appropriations''; and
            (3) by adding at the end the following:
    ``(c) Funding for Loan Guarantees for Advanced Nuclear Energy 
Facilities.--
            ``(1) In general.--On October 1, 2010, out of any funds in 
        the Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary for the cost of loan 
        guarantees to promote the development of advanced nuclear 
        energy facilities described in section 1703(b)(4) $360,000,000, 
        to remain available until expended.
            ``(2) Additionality.--Funds provided under this subsection 
        are in addition to authorities provided in any other Act.
            ``(3) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use for the cost 
        of the loan guarantees described in paragraph (1) the funds 
        transferred under that paragraph, without further 
        appropriation.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 594) is 
amended by striking the item relating to section 1704 and inserting the 
following:

``Sec. 1704. Funding.''.

    TITLE IV--MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE PROGRAMS

SEC. 401. MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE CHANGE PROGRAMS.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Energy, in consultation with the 
Administrator of the Environmental Protection Agency and the Secretary 
of Transportation, shall submit to the appropriate committees of 
Congress a list of Federal programs for which the Comptroller General 
of the United States shall carry out a study that monitors the progress 
of the programs in meeting the energy security and greenhouse gas 
reduction goals under this Act.
    (b) Study.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act and every 2 years thereafter, the 
        Comptroller General of the United States shall--
                    (A) carry out a study that monitors the progress of 
                the programs described in subsection (a); and
                    (B) submit to the appropriate committees of 
                Congress a report containing the findings of the study 
                carried out under this subsection.
            (2) Contents.--A study and report carried out under 
        paragraph (1) shall include--
                    (A) an examination of the effects the programs 
                described in subsection (a) have had on--
                            (i) the consumption, production, and import 
                        of oil and petroleum products;
                            (ii) national energy production and demand;
                            (iii) greenhouse gas emissions; and
                            (iv) the advancement and deployment of 
                        technology; and
                    (B) any recommendations of the Comptroller General 
                on improving the performance of the programs.
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