367 
not exceed 50 percent of the total retrofit 
cost of a building. In nonresidential build-
ings with multiple units, such awards shall 
be prorated among individual units on the 
basis of relative costs of the retrofit. 
(iii) 
ADDITIONAL
AWARDS.—Addi-
tional awards may be provided, for build-
ings achieving at least 20 percent energy 
savings using funding provided under 
clause (i), as follows: 
(I) WATER.—For purposes of in-
creasing energy efficiency, grants may 
be made for whole building potable 
water use reduction (using an appro-
priate method approved by the Ad-
ministrator) for up to 50 percent of 
the 
total 
retrofit 
cost, 
including 
amounts up to— 
(aa) $24.00 per thousand 
gallons per year of potable water 
savings of 40 percent or more; 
(bb) $27.00 per thousand 
gallons per year of potable water 
savings of 50 percent or more; 
and
368 
(cc) $30.00 per thousand 
gallons per year of potable water 
savings of 60 percent or more. 
(II) ENVIRONMENTAL
IMPROVE-
MENTS.—Additional awards of up to 
$1,000 may be granted for the inclu-
sion of other environmental attributes 
that the Administrator, in consulta-
tion with the Secretary, identifies as 
contributing to energy efficiency. Such 
attributes may include, but are not 
limited to waste diversion and the use 
of environmentally preferable mate-
rials (including salvaged, renewable, 
or recycled materials, and materials 
with no or low-VOC content). The Ad-
ministrator 
may 
recommend 
that 
States develop such standards as are 
necessary to account for local or re-
gional conditions that may affect the 
feasibility or availability of identified 
resources and attributes. 
(iv) INDOOR AIR QUALITY MINIMUM.— 
Nonresidential buildings receiving incen-
tives under this section must satisfy at a
369 
minimum the most recent version of 
ASHRAE Standard 62.1 for ventilation, or 
the equivalent as determined by the Ad-
ministrator. A State may issue a waiver 
from this requirement to a building project 
on a showing that such compliance is in-
feasible due to the physical constraints of 
the building’s existing ventilation system, 
or such other limitations as may be speci-
fied by the Administrator. 
(C) DISASTER DAMAGED BUILDINGS.—Any 
source of funds, including Federal funds pro-
vided through the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, shall 
qualify as the building owner’s 50 percent con-
tribution, in order to match the contribution of 
REEP funds, so long as the REEP funds are 
only used to improve the energy efficiency of 
the buildings being reconstructed. In addition, 
the appropriate Federal agencies providing as-
sistance to building owners through the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act shall make information available, 
following a disaster, to building owners rebuild-
ing disaster damaged buildings with assistance
370 
from the Act, that REEP funds may be used 
for energy efficiency improvements. 
(D) 
HISTORIC
BUILDINGS.—Notwith-
standing subparagraphs (A) and (B), a building 
in or eligible for the National Register of His-
toric Places shall be eligible for awards under 
this paragraph in amounts up to 120 percent of 
the amounts set forth in subparagraphs (A) and 
(B). 
(E) SUPPLEMENTAL SUPPORT.—State and 
local governments may supplement the per- 
building expenditures under this paragraph 
with funding from other sources. 
(3) ADJUSTMENT.—The Administrator may ad-
just the specific dollar limits funded by the sale of 
allowances pursuant to paragraph (2) in years sub-
sequent to the second year after the date of enact-
ment of this Act, and every 2 years thereafter, as 
the Administrator determines necessary to achieve 
optimum cost-effectiveness and to maximize incen-
tives to achieve energy efficiency within the total 
building award amounts provided in that paragraph, 
and shall publish and hold constant such revised lim-
its for at least 2 years.
371 
(j) REPORT TO CONGRESS.—The Administrator shall 
conduct an annual assessment of the achievements of the 
REEP program in each State, shall prepare an annual re-
port of such achievements and any recommendations for 
program modifications, and shall provide such report to 
Congress at the end of each fiscal year during which fund-
ing or other resources were made available to the States 
for the REEP Program. 
(k) OTHER SOURCES OF FEDERAL SUPPORT.— 
(1) ADDITIONAL
STATE
ENERGY
PROGRAM 
FUNDS.—Any Federal funding provided to a State 
Energy Program that is not required to be expended 
for a different federally designated purpose may be 
used to support a REEP program. 
(2) PROGRAM ADMINISTRATION.—State Energy 
Offices or designated State agencies may expend up 
to 10 percent of available allowance value provided 
under this section for program administration. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for the pur-
poses of this section, for each of fiscal years 2010, 
2011, 2012, and 2013— 
(A) $50,000,000 to the Administrator for 
program administration costs; and
372 
(B) $20,000,000 to the Secretary of En-
ergy for program administration costs. 
SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES. 
(a) DEFINITIONS.—In this section: 
(1) MANUFACTURED HOME.—The term ‘‘manu-
factured home’’ has the meaning given such term in 
section 603 of the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 
U.S.C. 5402). 
(2) ENERGY STAR QUALIFIED MANUFACTURED 
HOME.—The term ‘‘Energy Star qualified manufac-
tured home’’ means a manufactured home that has 
been designed, produced, and installed in accordance 
with Energy Star’s guidelines by an Energy Star 
certified plant. 
(b) PURPOSE.—The purpose of this section is to as-
sist low-income households residing in manufactured 
homes constructed prior to 1976 to save energy and en-
ergy expenditures by providing support toward the pur-
chase of new Energy Star qualified manufactured homes. 
(c) STATE IMPLEMENTATION OF PROGRAM.— 
(1) MANUFACTURED HOME REPLACEMENT PRO-
GRAM.—Any State may provide to the owner of a 
manufactured home constructed prior to 1976 a re-
bate to use toward the purchase of a new Energy
373 
Star qualified manufactured home pursuant to this 
section. 
(2) USE OF ALLOWANCES.—Direct Federal sup-
port for the program established in this section is 
provided through the emission allowances allocated 
to the States’ SEED Accounts pursuant to section 
132 of this Act. To the extent that a State provides 
allowances to local governments within the State to 
implement this program, that shall be deemed a dis-
tribution of such allowances to units of local govern-
ment pursuant to subsection (c)(1) of that section. 
(3) REBATES.— 
(A) 
PRIMARY
RESIDENCE
REQUIRE-
MENT.—A rebate described under paragraph 
(1) may only be made to an owner of a manu-
factured home constructed prior to 1976 that is 
used on a year-round basis as a primary resi-
dence. 
(B) DISMANTLING AND REPLACEMENT.—A 
rebate described under paragraph (1) may be 
made only if the manufactured home con-
structed prior to 1976 will be— 
(i) rendered unusable for human habi-
tation (including appropriate recycling); 
and
374 
(ii) replaced, in the same general loca-
tion, as determined by the applicable State 
agency, with an Energy Star qualified 
manufactured home. 
(C) SINGLE REBATE.—A rebate described 
under paragraph (1) may not be provided to 
any owner of a manufactured home constructed 
prior to 1976 that was or is a member of a 
household for which any other member of the 
household was provided a rebate pursuant to 
this section. 
(D) ELIGIBLE HOUSEHOLDS.—To be eligi-
ble to receive a rebate described under para-
graph (1), an owner of a manufactured home 
constructed prior to 1976 shall demonstrate to 
the applicable State agency that the total in-
come of all members the owner’s household does 
not exceed 200 percent of the Federal poverty 
level for income in the applicable area. 
(E) ADVANCE
AVAILABILITY.—A rebate 
may be provided under this section in a manner 
to facilitate the purchase of a new Energy Star 
qualified manufactured home. 
(4) REBATE LIMITATION.—Rebates provided by 
States under this section shall not exceed $7,500 per
375 
manufactured home from any value derived from the 
use of emission allowances provided to the State 
pursuant to section 132. 
(5) USE OF STATE FUNDS.—A State providing 
rebates under this section may supplement the 
amount of such rebates under paragraph (4) by any 
additional amount is from State funds and other 
sources, including private donations or grants from 
charitable organizations. 
(6) 
COORDINATION
WITH
SIMILAR
PRO-
GRAMS.— 
(A) STATE
PROGRAMS.—A State con-
ducting an existing program that has the pur-
pose of replacing manufactured homes con-
structed prior to 1976 with Energy Star quali-
fied manufactured homes, may use allowance 
value provided under section 782 of the Clean 
Air Act to support such a program, provided 
such funding does not exceed the rebate limita-
tion amount under paragraph (4). 
(B) FEDERAL PROGRAMS.—The Secretary 
of Energy shall coordinate with and seek to 
achieve the purpose of this section through 
similar Federal programs including—
376 
(i) the Weatherization Assistance Pro-
gram under part A of title IV of the En-
ergy Conservation and Production Act (42 
U.S.C. 6861 et seq.); and 
(ii) the program under part D of title 
III of the Energy Policy and Conservation 
Act (42 U.S.C. 6321 et seq.). 
(C) COORDINATION
WITH
OTHER
STATE 
AGENCIES.—A State agency using allowance 
value to administer the program under this sec-
tion may coordinate its efforts, and share funds 
for administration, with other State agencies in-
volved in low-income housing programs. 
(7) 
ADMINISTRATIVE
EXPENSES.—A 
State 
using allowance value under this section may expend 
not more than 10 percent of such value for adminis-
trative expenses related to this program. 
SEC. 204. BUILDING ENERGY PERFORMANCE LABELING 
PROGRAM. 
(a) ESTABLISHMENT.— 
(1) PURPOSE.—The Administrator shall estab-
lish a building energy performance labeling program 
with broad applicability to the residential and com-
mercial markets to enable and encourage knowledge 
about building energy performance by owners and
377 
occupants and to inform efforts to reduce energy 
consumption nationwide. 
(2) COMPONENTS.—In developing such pro-
gram, the Administrator shall— 
(A) consider existing programs, such as 
Environmental Protection Agency’s Energy 
Star program, the Home Energy Rating System 
(HERS) Index, and programs at the Depart-
ment of Energy; 
(B) support the development of model per-
formance labels for residential and commercial 
buildings; and 
(C) utilize incentives and other means to 
spur use of energy performance labeling of pub-
lic and private sector buildings nationwide. 
(b) DATA ASSESSMENT FOR BUILDING ENERGY PER-
FORMANCE.— 
(1) INITIAL REPORT.—Not later than 90 days 
after the date of enactment of this Act, the Adminis-
trator shall provide to Congress, as well as to the 
Secretary of Energy and the Office of Management 
and Budget, a report identifying— 
(A) all principal building types for which 
statistically significant energy performance data 
exists to serve as the basis of measurement pro-
378 
tocols and labeling requirements for achieved 
building energy performance; and 
(B) those building types for which addi-
tional data are required to enable the develop-
ment of such protocols and requirements. 
(2) ADDITIONAL REPORTS.—Additional updated 
reports shall be provided under this subsection as 
often as The Administrator considers practicable, 
but not less than every 2 years. 
(c) BUILDING DATA ACQUISITION.— 
(1) RESOURCE REQUIREMENTS.—For all prin-
cipal building types identified under subsection (b), 
the Secretary of Energy, not later than 90 days 
after a report by the Administrator under subsection 
(b), shall provide to Congress, the Administrator, 
and the Office of Management and Budget a state-
ment of additional resources needed, if any, to fully 
develop the relevant data, as well as the anticipated 
timeline for data development. 
(2) CONSULTATION.—The Secretary of Energy 
shall consult with the Administrator concerning the 
Administrator’s ability to use data series for these 
additional building types to support the achieved 
performance component in the labeling program.
379 
(3) IMPROVEMENTS TO BUILDING ENERGY CON-
SUMPTION DATABASES.— 
(A) COMMERCIAL
DATABASE.—The Sec-
retary of Energy shall support improvements to 
the Commercial Buildings Energy Consumption 
Survey (CBECS) as authorized by section 
205(k) of the Department of Energy Organiza-
tion Act (42 U.S.C. 7135(k))— 
(i) to enable complete and robust data 
for the actual energy performance of prin-
cipal building types currently covered by 
survey; 
(ii) to cover additional building types 
as identified by the Administrator under 
subsection (b)(1)(B), to enable the develop-
ment of achieved performance measure-
ment protocols are developed for at least 
90 percent of all major commercial build-
ing types within 5 years after the date of 
enactment of this Act; and 
(iii) to include third-party audits of 
random data samplings to ensure the qual-
ity and accuracy of survey information. 
(B) RESIDENTIAL DATABASES.—The Ad-
ministrator, in consultation with the Energy In-
380 
formation Administration and the Secretary of 
Energy, shall support improvements to the Res-
idential Energy Consumption Survey (RECS) 
as authorized by section 205(k) of the Depart-
ment of Energy Organization Act (42 U.S.C. 
7135(k)), or such other residential energy per-
formance databases as the Administrator con-
siders appropriate, to aid the development of 
achieved performance measurement protocols 
for residential building energy use for at least 
90 percent of the residential market within 5 
years after the date of enactment of this Act. 
(C) CONSULTATION.—The Secretary of 
Energy and the Administrator shall consult 
with public, private, and nonprofit sector rep-
resentatives from the building industry and real 
estate industry to assist in the evaluation and 
improvement of building energy performance 
databases and labeling programs. 
(d) IDENTIFICATION OF MEASUREMENT PROTOCOLS 
FOR ACHIEVED PERFORMANCE.— 
(1) PROPOSED
PROTOCOLS
AND
REQUIRE-
MENTS.—At the earliest practicable date, but not 
later than 1 year after identifying a building type 
under subsection (b)(1)(A), the Administrator shall
381 
propose a measurement protocol for that building 
type and a requirement detailing how to use that 
protocol in completing applicable commercial or resi-
dential performance labels created pursuant to this 
section. 
(2) FINAL RULE.—After providing for notice 
and comment, the Administrator shall publish a 
final rule containing a measurement protocol and 
the corresponding requirements for applying that 
protocol. Such a rule— 
(A) shall define the minimum period for 
measurement of energy use by buildings of that 
type and other details for determining achieved 
performance, to include leased buildings or 
parts thereof; 
(B) shall identify necessary data collection 
and record retention requirements; and 
(C) may specify transition rules and ex-
emptions for classes of buildings within the 
building type. 
(e) PROCEDURES FOR EVALUATING DESIGNED PER-
FORMANCE.—The Administrator shall develop protocols 
for evaluating the designed performance of individual 
building types. The Administrator may conduct such feasi-
bility studies and demonstration projects as are necessary
382 
to evaluate the sufficiency of proposed protocols for de-
signed performance. 
(f) CREATION OF BUILDING ENERGY PERFORMANCE 
LABELING PROGRAM.— 
(1) MODEL
LABEL.—Not later than 1 year 
after the date of enactment of this Act, the Adminis-
trator shall propose a model building energy label 
that provides a format— 
(A) to display achieved performance and 
designed performance data; 
(B) that may be tailored for residential 
and commercial buildings, and for single-occu-
pancy and multitenanted buildings; and 
(C) to display other appropriate elements 
identified during the development of measure-
ment protocols under subsections (d) and (e). 
(2) INCLUSIONS.—Nothing in this section shall 
require the inclusion on such a label of designed per-
formance data where impracticable or not cost effec-
tive, or to preclude the display of both achieved per-
formance and designed performance data for a par-
ticular building where both such measures are avail-
able, practicable, and cost effective.
383 
(3) EXISTING
PROGRAMS.—In developing the 
model label, the Administrator shall consider exist-
ing programs, including— 
(A) the Environmental Protection Agency’s 
Energy Star Portfolio Manager program and 
the California HERS II Program Custom Ap-
proach for the achieved performance component 
of the label; 
(B) the Home Energy Rating System 
(HERS) Index system for the designed per-
formance component of the label; and 
(C) other Federal and State programs, in-
cluding the Department of Energy’s related 
programs on building technologies and those of 
the Federal Energy Management Program. 
(4) FINAL RULE.—After providing for notice 
and comment, the Administrator shall publish a 
final rule containing the label applicable to covered 
building types. 
(g) DEMONSTRATION
PROJECTS
FOR
LABELING 
PROGRAM.— 
(1) IN GENERAL.—The Administrator shall con-
duct building energy performance labeling dem-
onstration projects for different building types—
384 
(A) to ensure the sufficiency of the current 
Commercial Buildings Energy Consumption 
Survey and other data to serve as the basis for 
new measurement protocols for the achieved 
performance component of the building energy 
performance labeling program; 
(B) to inform the development of measure-
ment protocols for building types not currently 
covered by the Commercial Buildings Energy 
Consumption Survey; and 
(C) to identify any additional information 
that needs to be developed to ensure effective 
use of the model label. 
(2) 
PARTICIPATION.—Such 
demonstration 
projects shall include participation of— 
(A) buildings from diverse geographical 
and climate regions; 
(B) buildings in both urban and rural 
areas; 
(C) single-family residential buildings; 
(D) multihousing residential buildings with 
more than 50 units, including at least one 
project that provides affordable housing to indi-
viduals of diverse incomes;
385 
(E) single-occupant commercial buildings 
larger than 30,000 square feet; 
(F) multitenanted commercial buildings 
larger than 50,000 square feet; and 
(G) buildings from both the public and pri-
vate sectors. 
(3) PRIORITY.—Priority in the selection of dem-
onstration projects shall be given to projects that fa-
cilitate large-scale implementation of the labeling 
program for samples of buildings across neighbor-
hoods, geographic regions, cities, or States. 
(4) FINDINGS.—The Administrator shall report 
any findings from demonstration projects under this 
subsection, including an identification of any areas 
of needed data improvement, to the Department of 
Energy’s Energy Information Administration and 
Building Technologies Program. 
(5) COORDINATION.—The Administrator and 
the Secretary of Energy shall coordinate demonstra-
tion projects undertaken pursuant to this subsection 
with those undertaken as part of the Zero-Net-En-
ergy Commercial Buildings Initiative adopted under 
section 422 of the Energy Independence and Secu-
rity Act of 2007 (42 U.S.C. 17082). 
(h) IMPLEMENTATION OF LABELING PROGRAM.—
386 
(1) IN GENERAL.—The Administrator, in con-
sultation with the Secretary of Energy, shall work 
with all State Energy Offices established pursuant 
to part D of title III of the Energy Policy and Con-
servation Act (42 U.S.C. 6321 et seq.) or other 
State authorities as necessary for the purpose of im-
plementing the labeling program established under 
this section for commercial and residential buildings. 
(2) OUTREACH TO LOCAL AUTHORITIES.—The 
Administrator shall, acting in consultation and co-
ordination with the respective States, encourage use 
of the labeling program by counties and other local-
ities to broaden access to information about building 
energy use, for example, through disclosure of build-
ing label contents in tax, title, and other records 
those localities maintain. For this purpose, the Ad-
ministrator shall develop an electronic version of the 
label and information that can be readily trans-
mitted and read in widely-available computer pro-
grams but is protected from unauthorized manipula-
tion. 
(3) MEANS OF IMPLEMENTATION.—In adopting 
the model labeling program established under this 
section, a State shall seek to ensure that labeled in-
formation be made accessible to the public in a man-
387 
ner so that owners, lenders, tenants, occupants, or 
other relevant parties can utilize it. Such accessi-
bility may be accomplished through— 
(A) preparation, and public disclosure of 
the label through filing with tax and title 
records at the time of— 
(i) a building audit conducted with 
support from Federal or State funds; 
(ii) a building energy-efficiency ret-
rofit conducted in response to such an 
audit; 
(iii) a final inspection of major ren-
ovations or additions made to a building in 
accordance with a building permit issued 
by a local government entity; 
(iv) a sale that is recorded for title 
and tax purposes consistent with para-
graph (8); 
(v) a new lien recorded on the prop-
erty for more than a set percentage of the 
assessed value of the property, if that lien 
reflects public financial assistance for en-
ergy-related improvements to that building; 
or
388 
(vi) a change in ownership or oper-
ation of the building for purposes of utility 
billing; or 
(B) other appropriate means. 
(4) STATE IMPLEMENTATION OF PROGRAM.— 
(A) ELIGIBILITY.—A State may become el-
igible to utilize allowance value to implement 
this program by— 
(i) adopting by statute or regulation a 
requirement that buildings be assessed and 
labeled, consistent with the labeling re-
quirements of the program established 
under this section; or 
(ii) adopting a plan to implement a 
model labeling program consistent with 
this section within 1 year of enactment of 
this Act, including the establishment of 
that program within 3 years after the date 
of enactment of this Act, and dem-
onstrating continuous progress under that 
plan. 
(B) USE OF ALLOWANCES.—Direct Fed-
eral support for the program established in this 
section is provided through the emission allow-
ances allocated to the States’ SEED Accounts
389 
pursuant to section 132 of this Act. To the ex-
tent that a State provides allowances to local 
governments within the State to implement this 
program, that shall be deemed a distribution of 
such allowances to units of local government 
pursuant to subsection (c)(1) of that section. 
(5) GUIDANCE.—The Administrator may create 
or identify model programs and resources to provide 
guidance to offer to States and localities for creating 
labeling programs consistent with the model pro-
gram established under this section. 
(6) PROGRESS REPORT.—The Administrator, in 
consultation with the Secretary of Energy, shall pro-
vide a progress report to Congress not later than 3 
years after the date of enactment of this Act that— 
(A) evaluates the effectiveness of efforts to 
advance use of the model labeling program by 
States and localities; 
(B) recommends any legislative changes 
necessary to broaden the use of the model label-
ing program; and 
(C) identifies any changes to broaden the 
use of the model labeling program that the Ad-
ministrator has made or intends to make that 
do not require additional legislative authority.
390 
(7) STATE INFORMATION.—The Administrator 
may require States to report to the Administrator 
information that the Administrator requires to pro-
vide the report required under paragraph (6). 
(8) PREVENTION
OF
DISRUPTION
OF
SALES 
TRANSACTIONS.—No State shall implement a new 
labeling program pursuant to this section in a man-
ner that requires the labeling of a building to occur 
after a contract has been executed for the sale of 
that building and before the sales transaction is 
completed. 
(i) IMPLEMENTATION
OF LABELING PROGRAM
IN 
FEDERAL BUILDINGS.— 
(1) USE
OF
LABELING
PROGRAM.—The Sec-
retary of Energy and the Administrator shall use the 
labeling program established under this section to 
evaluate energy performance in the facilities of the 
Department of Energy and the Environmental Pro-
tection Agency, respectively, to the extent prac-
ticable, and shall encourage and support implemen-
tation efforts in other Federal agencies. 
(2) ANNUAL
PROGRESS
REPORT.—The Sec-
retary of Energy and Administrator shall provide an 
annual progress report to Congress and the Office of 
Management and Budget detailing efforts to imple-
391 
ment this subsection, as well as any best practices 
or needed resources identified as a result of such ef-
forts. 
(j) PUBLIC OUTREACH.—The Secretary of Energy 
and the Administrator, in consultation with nonprofit and 
industry stakeholders with specialized expertise, and in 
conjunction with other energy efficiency public awareness 
efforts, shall establish a business and consumer education 
program to increase awareness about the importance of 
building energy efficiency and to facilitate widespread use 
of the labeling program established under this section. 
(k) DEFINITIONS.—In this section: 
(1) BUILDING
TYPE.—The term ‘‘building 
type’’ means a grouping of buildings as identified by 
their principal building activities, or as grouped by 
their use, including office buildings, laboratories, li-
braries, data centers, retail establishments, hotels, 
warehouses, and educational buildings. 
(2) 
MEASUREMENT
PROTOCOL.—The 
term 
‘‘measurement protocol’’ means the methodology, 
prescribed by the Administrator, for defining a 
benchmark for building energy performance for a 
specific building type and for measuring that per-
formance against the benchmark.
392 
(3) 
ACHIEVED
PERFORMANCE.—The 
term 
‘‘achieved performance’’ means the actual energy 
consumption of a building as compared to a baseline 
building of the same type and size, determined by 
actual consumption data normalized for appropriate 
variables. 
(4) DESIGNED PERFORMANCE.—The term ‘‘de-
signed performance’’ means the energy consumption 
performance a building would achieve if operated 
consistent with its design intent for building energy 
use, utilizing a standardized set of operational condi-
tions informed by data collected or confirmed during 
an energy audit. 
(l) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated— 
(1) to the Administrator $50,000,000 for imple-
mentation of this section for each fiscal year from 
2010 through 2020; and 
(2) to the Secretary of Energy $20,000,000 for 
implementation of this section for fiscal year 2010 
and $10,000,000 for fiscal years 2011 through 
2020. 
(m) NEW CONSTRUCTION.—This section shall apply 
only to construction beginning after the date of enactment 
of this Act.
393 
SEC. 205. TREE PLANTING PROGRAMS. 
(a) FINDINGS.—The Congress finds that— 
(1) the utility sector is the largest single source 
of greenhouse gas emissions in the United States 
today, producing approximately one-third of the 
country’s emissions; 
(2) heating and cooling homes accounts for 
nearly 60 percent of residential electricity usage in 
the United States; 
(3) shade trees planted in strategic locations 
can reduce residential cooling costs by as much as 
30 percent; 
(4) shade trees have significant clean-air bene-
fits associated with them; 
(5) every 100 healthy large trees removes about 
300 pounds of air pollution (including particulate 
matter and ozone) and about 15 tons of carbon diox-
ide from the air each year; 
(6) tree cover on private property and on newly- 
developed land has declined since the 1970s, even 
while emissions from transportation and industry 
have been rising; and 
(7) in over a dozen test cities across the United 
States, increasing urban tree cover has generated 
between two and five dollars in savings for every dol-
lar invested in such tree planting.
394 
(b) DEFINITIONS.—As used in this section: 
(1) The term ‘‘Secretary’’ refers to the Sec-
retary of Energy. 
(2) The term ‘‘retail power provider’’ means 
any entity authorized under applicable State or Fed-
eral law to generate, distribute, or provide retail 
electricity, natural gas, or fuel oil service. 
(3) The term ‘‘tree-planting organization’’ 
means any nonprofit or not-for-profit group which 
exists, in whole or in part, to— 
(A) expand urban and residential tree 
cover; 
(B) distribute trees for planting; 
(C) increase awareness of the environ-
mental and energy-related benefits of trees; 
(D) educate the public about proper tree 
planting, care, and maintenance strategies; or 
(E) carry out any combination of the fore-
going activities. 
(4) The term ‘‘tree-siting guidelines’’ means a 
comprehensive list of science-based measurements 
outlining the species and minimum distance required 
between trees planted pursuant to this section, in 
addition to the minimum required distance to be 
maintained between such trees and—
395 
(A) building foundations; 
(B) air conditioning units; 
(C) driveways and walkways; 
(D) property fences; 
(E) preexisting utility infrastructure; 
(F) septic systems; 
(G) swimming pools; and 
(H) other infrastructure as deemed appro-
priate. 
(5) The terms ‘‘small office’’, ‘‘small office 
buildings’’, and ‘‘small office settings’’ means non-
residential buildings or structures zoned for business 
purposes that are 20,000 square feet or less in total 
area. 
(c) PURPOSES.—The purpose of this section is to es-
tablish a grant program to assist retail power providers 
with the establishment and operation of targeted tree- 
planting programs in residential and small office settings, 
for the following purposes: 
(1) Reducing the peak-load demand for elec-
tricity from residences and small office buildings 
during the summer months through direct shading 
of buildings provided by strategically planted trees. 
(2) Reducing wintertime demand for energy 
from residences and small office buildings by block-
396 
ing cold winds from reaching such structures, which 
lowers interior temperatures and drives heating de-
mand. 
(3) Protecting public health by removing harm-
ful pollution from the air. 
(4) Utilizing the natural photosynthetic and 
transpiration process of trees to lower ambient tem-
peratures and absorb carbon dioxide, thus mitigating 
the effects of climate change. 
(5) Lowering electric bills for residential and 
small office ratepayers by limiting electricity con-
sumption without reducing benefits. 
(6) Relieving financial and demand pressure on 
retail power providers that stems from large peak- 
load energy demand. 
(7) Protecting water quality and public health 
by reducing stormwater runoff and keeping harmful 
pollutants from entering waterways. 
(8) Ensuring that trees are planted in locations 
that limit the amount of public money needed to 
maintain public and electric infrastructure. 
(d) GENERAL AUTHORITY.— 
(1) ASSISTANCE.—The Secretary is authorized 
to provide financial, technical, and related assistance 
to retail power providers to assist with the establish-
397 
ment of new, or continued operation of existing, tar-
geted tree-planting programs for residences and 
small office buildings. 
(2) PUBLIC RECOGNITION INITIATIVE.—In car-
rying out the authority provided under this section, 
the Secretary shall also create a national public rec-
ognition initiative to encourage participation in tree- 
planting programs by retail power providers. 
(3) ELIGIBILITY.—Only those programs which 
utilize targeted, strategic tree-siting guidelines to 
plant trees in relation to building location, sunlight, 
and prevailing wind direction shall be eligible for as-
sistance under this section. 
(4) REQUIREMENTS.—In order to qualify for 
assistance under this section, a tree-planting pro-
gram shall meet each of the following requirements: 
(A) The program shall provide free or dis-
counted shade-providing or wind-reducing trees 
to residential and small office consumers inter-
ested in lowering their home energy costs. 
(B) The program shall optimize the elec-
tricity-consumption reduction benefit of each 
tree by planting in strategic locations around a 
given residence or small office. 
(C) The program shall either—
398 
(i) provide maximum amounts of 
shade during summer intervals when resi-
dences and small offices are exposed to the 
most sun intensity; or 
(ii) provide maximum amounts of 
wind protection during fall and winter in-
tervals when residences and small offices 
are exposed to the most wind intensity. 
(D) The program shall use the best avail-
able science to create tree siting guidelines 
which dictate where the optimum tree species 
are best planted in locations that achieve max-
imum reductions in consumer energy demand 
while causing the least disruption to public in-
frastructure, considering overhead and under-
ground facilities. 
(E) The program shall receive certification 
from the Secretary that it is designed to achieve 
the goals set forth in subparagraphs (A) 
through (D). In designating criteria for such 
certification, the Secretary shall collaborate 
with the United States Forest Service’s Urban 
and Community Forestry Program to ensure 
that certification requirements are consistent 
with such above goals.
399 
(5) NEW PROGRAM FUNDING SHARE.—The Sec-
retary shall ensure that no less than 30 percent of 
the funds made available under this section are dis-
tributed to retail power providers which— 
(A) have not previously established or op-
erated qualified tree-planting programs; or 
(B) are operating qualified tree-planting 
programs which were established no more than 
3 years prior to the date of enactment of this 
section. 
(e) AGREEMENTS
BETWEEN
ELECTRICITY
PRO-
VIDERS AND TREE-PLANTING ORGANIZATIONS.— 
(1) GRANT AUTHORIZATION.—In providing as-
sistance under this section, the Secretary is author-
ized to award grants only to retail power providers 
that have entered into binding legal agreements with 
nonprofit tree-planting organizations. 
(2) 
CONDITIONS
OF
AGREEMENT.—Those 
agreements between retail power providers and tree- 
planting organizations shall set forth conditions 
under which nonprofit tree-planting organizations 
shall provide targeted tree-planting programs which 
may require these organizations to— 
(A) participate in local technical advisory 
committees responsible for drafting general
400 
tree-siting guidelines and choosing the most ef-
fective species of trees to plant in given loca-
tions; 
(B) coordinate volunteer recruitment to as-
sist with the physical act of planting trees in 
residential locations; 
(C) undertake public awareness campaigns 
to educate local residents about the benefits, 
cost savings, and availability of free shade 
trees; 
(D) establish education and information 
campaigns to encourage recipients to maintain 
their shade trees over the long term; 
(E) serve as the point of contact for exist-
ing and potential residential participants who 
have questions or concerns regarding the tree- 
planting program; 
(F) require tree recipients to sign agree-
ments committing to voluntary stewardship and 
care of provided trees; 
(G) monitor and report on the survival, 
growth, overall health, and estimated energy 
savings of provided trees up until the end of 
their establishment period which shall be no 
less than 5 years; and
401 
(H) ensure that trees planted near existing 
power lines will not interfere with energized 
electricity distribution lines when mature, and 
that no new trees will be planted under or adja-
cent to high-voltage electric transmission lines 
without prior consultation with the applicable 
retail power provider receiving assistance under 
this section. 
(3) LACK
OF
NONPROFIT
ORGANIZATION.—If 
qualified nonprofit or not-for-profit tree planting or-
ganizations do not exist or operate within areas 
served by retail power providers applying for assist-
ance under this section, the requirements of this sec-
tion shall apply to binding legal agreements entered 
into by such retail power providers and one of the 
following entities: 
(A) Local municipal governments with ju-
risdiction over the urban or suburban forest. 
(B) The State Forester for the State in 
which the tree planting program will operate. 
(C) The United States Forest Service’s 
Urban and Community Forestry representative 
for the State in which the tree-planting pro-
gram will operate.
402 
(D) A landscaping services company that 
is— 
(i) identified in consultation with a 
national or State nonprofit or not-for-prof-
it tree-planting organization; 
(ii) licensed to operate in the State in 
which the tree-planting program will oper-
ate; and 
(iii) a business as defined by the 
United States Census Bureau’s 2007 
North American Industry Classification 
System Code 561730. 
(f) TECHNICAL ADVISORY COMMITTEES.— 
(1) DESCRIPTION.—In order to qualify for as-
sistance under this section, the retail power provider 
shall establish and consult with a local technical ad-
visory committee which shall provide advice and con-
sultation to the program, and may— 
(A) design and adopt an approved plant 
list 
that 
emphasizes 
the 
use 
of 
hardy, 
noninvasive tree species and, where geographi-
cally appropriate, the use of native, or site- 
adapted, or low water-use shade trees;
403 
(B) design and adopt planting, installation, 
and maintenance specifications and create a 
process for inspection and quality control; 
(C) ensure that tree recipients are edu-
cated to care for and maintain their trees over 
the long term; 
(D) help the public become more engaged 
and educated in the planting and care of shade 
trees; 
(E) prioritize which sites receive trees, giv-
ing preference to locations with the most poten-
tial for energy conservation and secondary pref-
erence to areas where the average annual in-
come is below the regional median; and 
(F) assist with monitoring and collection of 
data on tree health, tree survival, and energy 
conservation benefits generated under this sec-
tion. 
(2) COMPENSATION.—Individuals serving on 
local technical advisory committees shall not receive 
compensation for their service. 
(3) COMPOSITION.—Local technical advisory 
committees shall be composed of representatives 
from public, private, and nongovernmental agencies 
with expertise in demand-side energy efficiency man-
404 
agement, urban forestry, or arboriculture, and shall 
be composed of the following: 
(A) Up to 4 persons, but no less than one 
person, representing the retail power provider 
receiving assistance under this section. 
(B) Up to 4 persons, but no less than one 
person, representing the local tree-planting or-
ganization which will partner with the retail 
power provider to carry out this section. 
(C) Up to 3 persons representing local 
nonprofit conservation or environmental organi-
zations. Preference shall be given to those enti-
ties 
which 
are 
organized 
under 
section 
501(c)(3) of the Internal Revenue Code of 
1986, and which have demonstrated expertise 
engaging the public in energy conservation, en-
ergy efficiency, or green building practices or a 
combination thereof, such that no single organi-
zation is represented by more than one indi-
vidual under this paragraph. 
(D) Up to 2 persons representing a local 
affordable housing agency, affordable housing 
builder, or community development corporation. 
(E) Up to 3, but no less than one, persons 
representing local city or county government for
405 
each municipality where a shade tree-planting 
program will take place; at least one of these 
representatives shall be the city or county for-
ester, city or county arborist, or functional 
equivalent. 
(F) Up to one person representing the 
local government agency responsible for man-
agement of roads, sewers, and infrastructure, 
including but not limited to public works de-
partments, transportation agencies, or equiva-
lents. 
(G) Up to 3 persons representing the nurs-
ery and landscaping industry. 
(H) Up to 3 persons representing the re-
search community or academia with expertise in 
natural resources or energy management issues. 
(4) CHAIRPERSON.—Each local technical advi-
sory committee shall elect a chairperson to preside 
over Committee meetings, act as a liaison to govern-
mental and other outside entities, and direct the 
general operation of the committee; only committee 
representatives from paragraph (3)(A) or paragraph 
(3)(B) of this subsection shall be eligible to act as 
local technical advisory committee chairpersons.
406 
(5) CREDENTIALS.—At least one of the mem-
bers of each local technical advisory committee shall 
be certified with one or more of the following creden-
tials: International Society of Arboriculture; Cer-
tified Arborist, ISA; Certified Arborist Municipal 
Specialist, ISA; Certified Arborist Utility Specialist, 
ISA; Board Certified Master Arborist; or Registered 
Landscape Architect recommended by the American 
Society of Landscape Architects. 
(g) COST-SHARE PROGRAM.— 
(1) FEDERAL SHARE.—The Federal share of 
support for projects funded under this section shall 
not exceed 50 percent of the cost of such project and 
shall be provided on a matching basis. 
(2) NON-FEDERAL
SHARE.—The non-Federal 
share of such costs may be paid or contributed by 
any governmental or nongovernmental entity other 
than from funds derived directly or indirectly from 
an agency or instrumentality of the United States. 
(h) RULEMAKING.— 
(1) RULEMAKING PERIOD.—The Secretary shall 
be authorized to solicit comments and initiate a rule-
making period that shall last no more than 6 
months after the date of enactment of this section.
407 
(2) COMPETITIVE GRANT RULE.—At the conclu-
sion of the rulemaking period under paragraph (1), 
the Secretary shall promulgate a rule governing a 
public, competitive grants process through which re-
tail power providers may apply for Federal support 
under this section. 
(i) NONDUPLICITY.—Nothing in this section shall be 
construed to supersede, duplicate, cancel, or negate the 
programs or authorities provided under section 9 of the 
Cooperative Forestry Assistance Act of 1978 (92 Stat. 
369; Public Law 95–313; 16 U.S.C. 2105). 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are hereby authorized to be appropriated such sums as 
may be necessary for the implementation of this section. 
SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILD-
INGS. 
Section 453(c)(1) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17112(c)(1)) is amended 
by inserting ‘‘but not later than 2 years after the date 
of enactment of this Act’’ after ‘‘described in subsection 
(b)’’. 
SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION 
GRANTS. 
(a) GRANT PROGRAM AUTHORIZED.—
408 
(1) GRANT AUTHORIZATION.—The Secretary of 
Housing and Urban Development shall to the extent 
amounts are made available for grants under this 
section provide grants to local building code enforce-
ment departments. 
(2) COMPETITIVE
AWARDS.—The Secretary 
shall award grants under paragraph (1) on a com-
petitive basis taking into consideration the following: 
(A) The financial need of each building 
code enforcement department. 
(B) The benefit to the jurisdiction of hav-
ing an adequately funded building code enforce-
ment department. 
(C) The demonstrated ability of each build-
ing code enforcement department to work coop-
eratively with other local code enforcement of-
fices, health departments, and local prosecu-
torial agencies. 
(3) 
MAXIMUM
AMOUNT.—The 
maximum 
amount of any grant awarded under this subsection 
shall not exceed $1,000,000. 
(4) COORDINATION.—The Secretary of Housing 
and Urban Development shall coordinate with the 
Secretary of Energy to ensure that any unneces-
sarily duplicative funding through grants under this
409 
section of activities otherwise funded through the 
Department of Energy is minimized or eliminated. 
(b) REQUIRED ELEMENTS IN GRANT PROPOSALS.— 
In order to be eligible for a grant under subsection (a), 
a building code enforcement department of a jurisdiction 
shall submit to the Secretary the following: 
(1) A demonstration of the jurisdiction’s needs 
in executing building code enforcement administra-
tion. 
(2) A plan for the use of any funds received 
from a grant under this section that addresses the 
needs discussed in paragraph (1) and that is con-
sistent with the authorized uses established in sub-
section (c). 
(3) A plan for local governmental actions to be 
taken to establish and sustain local building code en-
forcement administration functions, without con-
tinuing Federal support, at a level at least equiva-
lent to that proposed in the grant application. 
(4) A plan to create and maintain a program of 
public outreach that includes a regularly updated 
and readily accessible means of public communica-
tion, interaction, and reporting regarding the serv-
ices and work of the building code enforcement de-
partment to be supported by the grant.
410 
(5) A plan for ensuring the timely and effective 
administrative enforcement of building safety and 
fire prevention violations. 
(c) USE OF FUNDS; MATCHING FUNDS.— 
(1) AUTHORIZED USES.—Amounts from grants 
awarded under subsection (a) may be used by the 
grant recipient to supplement existing State or local 
funding for administration of building code enforce-
ment, or to supplement allowance value received pur-
suant to this Act for implementation and enforce-
ment of energy efficiency building codes. Such 
amounts may be used to increase staffing, provide 
staff training, increase staff competence and profes-
sional qualifications, or support individual certifi-
cation or departmental accreditation, or for capital 
expenditures specifically dedicated to the administra-
tion of the building code enforcement department. 
(2) ADDITIONAL REQUIREMENT.—Each build-
ing code enforcement department receiving a grant 
under subsection (a) shall empanel a code adminis-
tration and enforcement team consisting of at least 
1 full-time building code enforcement officer, a city 
planner, and a health planner or similar officer. 
(3) MATCHING FUNDS REQUIRED.—
411 
(A) IN GENERAL.—To be eligible to receive 
a grant under this section, a building code en-
forcement department shall provide matching, 
non-Federal funds in the following amount: 
(i) In the case of a building code en-
forcement department serving an area with 
a population of more than 50,000, an 
amount equal to not less than 50 percent 
of the total amount of any grant to be 
awarded under this section. 
(ii) In the case of a building code en-
forcement department serving an area with 
a population of between 20,001 and 
50,000, an amount equal to not less than 
25 percent of the total amount of any 
grant to be awarded under this section. 
(iii) In the case of a building code en-
forcement department serving an area with 
a population of less than 20,000, an 
amount equal to not less than 12.5 percent 
of the total amount of any grant to be 
awarded under this section. 
(B) ECONOMIC DISTRESS.— 
(i) IN GENERAL.—The Secretary may 
waive the matching fund requirements
412 
under subparagraph (A), and institute, by 
regulation, new matching fund require-
ments based upon the level of economic 
distress of the jurisdiction in which the 
local building code enforcement department 
seeking such grant is located. 
(ii) CONTENT OF REGULATIONS.—Any 
regulations instituted under clause (i) shall 
include— 
(I) a method that allows for a 
comparison of the degree of economic 
distress among the local jurisdictions 
of grant applicants, as measured by 
the differences in the extent of growth 
lag, the extent of poverty, and the ad-
justed age of housing in such jurisdic-
tion; and 
(II) any other factor determined 
to be relevant by the Secretary in as-
sessing the comparative degree of eco-
nomic distress among such jurisdic-
tions. 
(4) IN-KIND CONTRIBUTIONS.—In determining 
the non-Federal share required to be provided under 
paragraph (3), the Secretary shall consider in-kind
413 
contributions, not to exceed 50 percent of the 
amount that the department contributes in non-Fed-
eral funds. 
(5) WAIVER
OF
MATCHING
REQUIREMENT.— 
The Secretary shall waive the matching fund re-
quirements under paragraph (3) for any recipient ju-
risdiction that has dedicated all building code per-
mitting fees to the conduct of local building code en-
forcement. 
(d) EVALUATION AND REPORT.— 
(1) IN GENERAL.—Grant recipients under this 
section shall— 
(A) be obligated to fully account and re-
port for the use of all grants funds; and 
(B) provide a report to the Secretary on 
the effectiveness of the program undertaken by 
the grantee and any other criteria requested by 
the Secretary for the purpose of indicating the 
effectiveness of, and ideas for, refinement of the 
grant program. 
(2) REPORT.—The report required under para-
graph (1)(B) shall include a discussion of— 
(A) the specific capabilities and functions 
in local building code enforcement administra-
414 
tion that were addressed using funds received 
under this section; 
(B) the lessons learned in carrying out the 
plans supported by the grant; and 
(C) the manner in which the programs 
supported by the grant are to be maintained by 
the grantee. 
(3) CONTENT
OF
REPORTS.—The Secretary 
shall— 
(A) require each recipient of a grant under 
this section to file interim and final reports 
under paragraph (2) to ensure that grant funds 
are being used as intended and to measure the 
effectiveness and benefits of the grant program; 
and 
(B) develop and maintain a means whereby 
the public can access such reports, at no cost, 
via the Internet. 
(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) BUILDING CODE ENFORCEMENT.—The term 
‘‘building code enforcement’’ means the enforcement 
of any code, adopted by a State or local government, 
that regulates the construction of buildings and fa-
cilities to mitigate hazards to life or property. Such
415 
term includes building codes, electrical codes, energy 
codes, fire codes, fuel gas codes, mechanical codes, 
and plumbing codes. 
(2) BUILDING
CODE
ENFORCEMENT
DEPART-
MENT.—The term ‘‘building code enforcement de-
partment’’ means an inspection or enforcement 
agency of a jurisdiction that is responsible for con-
ducting building code enforcement. 
(3) JURISDICTION.—The term ‘‘jurisdiction’’ 
means a city, county, parish, city and county author-
ity, or city and parish authority having local author-
ity to enforce building codes and regulations and to 
collect fees for building permits. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated $20,000,000 for each of fiscal years 
2010 through 2014 to the Secretary of Housing and 
Urban Development to carry out the provisions of 
this section. 
(2) RESERVATION.—From the amount made 
available under paragraph (1), the Secretary may re-
serve not more than 5 percent for administrative 
costs.
416 
(3) AVAILABILITY.—Any funds appropriated 
pursuant to paragraph (1) shall remain available 
until expended. 
SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT RE-
QUIREMENTS FOR RECEIPT OF COMMUNITY 
DEVELOPMENT BLOCK GRANT FUNDS. 
Section 104 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5304) is amended by adding 
at the end the following new subsection: 
‘‘(n) REQUIREMENTS FOR BUILDING PERMITS RE-
GARDING SOLAR ENERGY SYSTEMS.— 
‘‘(1) IN GENERAL.—A grant under section 106 
for a fiscal year may be made only if the grantee 
certifies to the Secretary that— 
‘‘(A) in the case of a grant under section 
106(a) for any Indian tribe or insular area, 
during such fiscal year the cost of any permit 
or license, for construction or installation of any 
solar energy system for any structure, that is 
required by the tribe or insular area or by any 
other unit of general local government or other 
political subdivision of such tribe or insular 
area, complies with paragraph (2); 
‘‘(B) in the case of a grant under section 
106(b) for any metropolitan city or urban coun-
417 
ty, during such fiscal year the cost of any per-
mit or license, for construction or installation of 
any solar energy system for any structure, that 
is required by the metropolitan city or urban 
county, or by any other political subdivision of 
such city or county, complies with paragraph 
(2); and 
‘‘(C) in the case of a grant under section 
106(d) for any State, during such fiscal year 
the cost of any permit or license, for construc-
tion or installation of any solar energy system 
for any structure, that is required by the State, 
or by any other unit of general local govern-
ment within any nonentitlement area of such 
State, or other political subdivision within any 
nonentitlement area of such State or such a 
unit of general local government, complies with 
paragraph (2). 
‘‘(2) LIMITATION ON COST.—The cost of permit 
or license for construction or installation of any 
solar energy system complies with this paragraph 
only if such cost does not exceed the following 
amount:
418 
‘‘(A) RESIDENTIAL STRUCTURES.—In the 
case of a structure primarily for residential use, 
$500. 
‘‘(B) NONRESIDENTIAL STRUCTURES.—In 
the case of a structure primarily for nonresiden-
tial use, 1.0 percent of the total cost of the in-
stallation or construction of the solar energy 
system, but not in excess of $10,000. 
‘‘(3) NONCOMPLIANCE.—If the Secretary deter-
mines that a grantee of a grant made under section 
106 is not in compliance with a certification under 
paragraph (1)— 
‘‘(A) the Secretary shall notify the grantee 
of such determination; and 
‘‘(B) if the grantee has not corrected such 
noncompliance before the expiration of the 6- 
month period beginning upon notification under 
subparagraph (A), such grantee shall not be eli-
gible for 5 percent of any amounts awarded 
under a grant under section 106 for the first 
fiscal year that commences after the expiration 
of such 6-month period. 
‘‘(4) SOLAR ENERGY SYSTEM.—For purposes of 
this subsection, the term ‘solar energy system’ 
means, with respect to a structure, equipment that
419 
uses solar energy to generate electricity for, or to 
heat or cool (or provide hot water for use in), such 
structure.’’. 
SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDEN-
TIAL INSTALLATION OF SOLAR ENERGY SYS-
TEM. 
(a) REGULATIONS.—Within 180 days after the enact-
ment of this Act, the Secretary of Housing and Urban 
Development, in consultation with the Secretary of En-
ergy, shall issue regulations— 
(1) to prohibit any private covenant, contract 
provision, lease provision, homeowners’ association 
rule or bylaw, or similar restriction, that impairs the 
ability of the owner or lessee of any residential 
structure designed for occupancy by 1 family to in-
stall, construct, maintain, or use a solar energy sys-
tem on such residential property; and 
(2) to require that whenever any such covenant, 
provision, rule or bylaw, or restriction requires ap-
proval for the installation or use of a solar energy 
system, the application for approval shall be proc-
essed and approved by the appropriate approving en-
tity in the same manner as an application for ap-
proval of an architectural modification to the prop-
erty, and shall not be willfully avoided or delayed.
420 
(b) CONTENTS.—The regulations required under sub-
section (a) shall provide that— 
(1) such a covenant, provision, rule or bylaw, or 
restriction impairs the installation, construction, 
maintenance, or use of a solar energy system if it— 
(A) unreasonably delays or prevents instal-
lation, maintenance, or use; 
(B) unreasonably increases the cost of in-
stallation, maintenance, or use; or 
(C) precludes use of such a system; and 
(2) any fee or cost imposed on the owner or les-
see of such a residential structure by such a cov-
enant, provision, rule or bylaw, or restriction shall 
be considered unreasonable if— 
(A) such fee or cost is not reasonable in 
comparison to the cost of the solar energy sys-
tem or the value of its use; or 
(B) treatment of solar energy systems by 
the covenant, provision, rule or bylaw, or re-
striction is not reasonable in comparison with 
treatment of comparable systems by the same 
covenant, provision, rule or bylaw, or restric-
tion. 
(c) SOLAR ENERGY SYSTEM.—For purposes of this 
section, the term ‘‘solar energy system’’ means, with re-
421 
spect to a structure, equipment that uses solar energy to 
generate electricity for, or to heat or cool (or provide hot 
water for use in), such structure. 
Subtitle B—Lighting and Appliance 
Energy Efficiency Programs 
SEC. 211. LIGHTING EFFICIENCY STANDARDS. 
(a) OUTDOOR LIGHTING.— 
(1) DEFINITIONS.— 
(A) Section 340(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6311(1)) is 
amended by striking subparagraph (L) and in-
serting the following: 
‘‘(L) Outdoor luminaires. 
‘‘(M) Outdoor high light output lamps. 
‘‘(N) Any other type of industrial equip-
ment which the Secretary classifies as covered 
equipment under section 341(b).’’. 
(B) Section 340 of the Energy Policy and 
Conservation Act (42 U.S.C. 6311) is amended 
as adding at the end the following: 
‘‘(25) The term ‘luminaire’ means a complete 
lighting unit consisting of one or more light sources 
and ballast(s), together with parts designed to dis-
tribute the light, to position and protect such lamps,
422 
and to connect such light sources to the power sup-
ply. 
‘‘(26) The term ‘outdoor luminaire’ means a lu-
minaire that is listed as suitable for wet locations 
pursuant to Underwriters Laboratories Inc. stand-
ard UL 1598 and is labeled as ‘Suitable for Wet Lo-
cations’ consistent with section 410.4(A) of the Na-
tional Electrical Code 2005, or is designed for road-
way illumination and meets the requirements of Ad-
dendum A for IESNA TM–15–07: Backlight, 
Uplight, and Glare (BUG) Ratings, except for— 
‘‘(A) luminaires designed for outdoor video 
display images that cannot be used in general 
lighting applications; 
‘‘(B) portable luminaires designed for use 
at construction sites; 
‘‘(C) luminaires designed for continuous 
immersion in swimming pools and other water 
features; 
‘‘(D) seasonal luminaires incorporating 
solely individual lamps rated at 10 watts or 
less; 
‘‘(E) luminaires designed to be used in 
emergency conditions that incorporate a means 
of charging a battery and a device to switch the
423 
power supply to emergency lighting loads auto-
matically upon failure of the normal power sup-
ply; 
‘‘(F) components used for repair of in-
stalled luminaries and that meet the require-
ments of section 342(h); 
‘‘(G) a luminaire utilizing an electrode-less 
fluorescent lamp as the light source; 
‘‘(H) decorative gas lighting systems; 
‘‘(I) luminaires designed explicitly for 
lighting for theatrical purposes, including per-
formance, stage, film production, and video pro-
duction; 
‘‘(J) luminaires designed as theme ele-
ments in theme/amusement parks and that can-
not be used in most general lighting applica-
tions; 
‘‘(K) luminaires designed explicitly for ve-
hicular roadway tunnels designed to comply 
with ANSI/IESNA RP–22–05; 
‘‘(L) luminaires designed explicitly for haz-
ardous locations meeting UL Standard 844; 
‘‘(M) searchlights;
424 
‘‘(N) luminaires that are designed to be re-
cessed into a building, and that cannot be used 
in most general lighting applications; 
‘‘(O) a luminaire rated only for residential 
applications utilizing a light source or sources 
regulated under the amendments made by sec-
tion 321 of the Energy Independence and Secu-
rity Act of 2007 and with a light output no 
greater than 2,600 lumens; 
‘‘(P) a residential pole-mounted luminaire 
that is not rated for commercial use utilizing a 
light source or sources meeting the efficiency 
requirements of section 231 of the Energy 
Independence and Security Act of 2007 and 
mounted on a post or pole not taller than 10.5 
feet above ground and with a light output not 
greater than 2,600 lumens; 
‘‘(Q) a residential fixture with E12 (Can-
delabra) bases that is rated for not more than 
300 watts total; or 
‘‘(R) a residential fixture with medium 
screw bases that is rated for not more than 145 
watts. 
‘‘(27) The term ‘outdoor high light outputlamp’ 
means a lamp that—
425 
‘‘(A) has a rated lumen output not less 
than 2601 lumens; 
‘‘(B) is capable of being operated at a volt-
age not less than 110 volts and not greater 
than 300 volts, or driven at a constant current 
of 6.6 amperes; 
‘‘(C) is not a Parabolic Aluminized Reflec-
tor lamp; and 
‘‘(D) is not a J-type double-ended (T–3) 
halogen quartz lamp, utilizing R–7S bases, that 
is manufactured before January 1, 2015. 
‘‘(28) The term ‘outdoor lighting control’ means 
a device incorporated in a luminaire that receives a 
signal, from either a sensor (such as an occupancy 
sensor, motion sensor, or daylight sensor) or an 
input signal (including analog or digital signals com-
municated through wired or wireless technology), 
and can adjust the light level according to the sig-
nal.’’. 
(2) STANDARDS.— Section 342 of the Energy 
Policy and Conservation Act (42 U.S.C. 6313) is 
amended by adding at the end the following: 
‘‘(g) OUTDOOR LUMINAIRES.— 
‘‘(1) Each outdoor luminaire manufactured on 
or after January 1, 2016, shall—
426 
‘‘(A) have an initial luminaire efficacy of 
at least 50 lumens per watt; and 
‘‘(B) be designed to use a light source with 
a lumen maintenance, calculated as mean rated 
lumens divided by initial lumens, of at least 0.6. 
‘‘(2) Each outdoor luminaire manufactured on 
or after January 1, 2018, shall— 
‘‘(A) have an initial luminaire efficacy of 
at least 70 lumens per watt; and 
‘‘(B) be designed to use a light source with 
a lumen maintenance, calculated as mean rated 
lumens divided by initial lumens, of at least 0.6. 
‘‘(3) In addition to the requirements of para-
graphs (1) through (3), each outdoor luminaire man-
ufactured on or after January 1, 2016, shall have 
the capability of producing at least two different 
light levels, including 100 percent and 60 percent of 
full lamp output as tested with the maximum rated 
lamp per UL1598 or the manufacturer’s maximum 
specified for the luminaire under test. Outdoor lumi-
naries used for roadway lighting applications shall 
be exempt the 2 light level requirement. 
‘‘(4)(A) Not later than January 1, 2022, the 
Secretary shall issue a final rule amending the appli-
427 
cable standards established in paragraph (3) if tech-
nologically feasible and economically justified. 
‘‘(B) A final rule issued under subparagraph 
(A) shall establish efficiency standards at the max-
imum level that is technically feasible and economi-
cally justified, as provided in subsections (o) and (p) 
of section 325. The Secretary may also, in such rule-
making, amend or discontinue the product exclusions 
listed in section 340(26)(A) through (P), or amend 
the lumen maintenance requirements in paragraph 
(2) if the Secretary determines that such amend-
ments are consistent with the purposes of this Act. 
‘‘(C) If the Secretary issues a final rule under 
subparagraph (A) establishing amended standards, 
the final rule shall provide that the amended stand-
ards apply to products manufactured on or after 
January 1, 2025, or 1 year after the date on which 
the final amended standard is published, whichever 
is later. 
‘‘(h) OUTDOOR HIGH LIGHT OUTPUT LAMPS.—Each 
outdoor high light output lamp manufactured on or after 
January 1, 2017, shall have a lighting efficiency of at least 
45 lumens per watt.’’. 
(3) TEST PROCEDURES.— Section 343(a) of the 
Energy Policy and Conservation Act (42 U.S.C.
429 
paragraph (2), and may incorporate as appro-
priate consensus test procedures developed by 
the Illuminating Engineering Society or other 
appropriate consensus standards bodies.’’. 
(4) PREEMPTION.— Section 345 of the Energy 
Policy and Conservation Act (42 U.S.C. 6316) is 
amended by adding at the end the following: 
‘‘(i)(1) Except as provided in paragraph (2), section 
327 shall apply to outdoor luminaires to the same extent 
and in the same manner as the section applies under part 
B. 
‘‘(2) Any State standard that is adopted on or before 
January 1, 2015, pursuant to a statutory requirement to 
adopt efficiency standards for reducing outdoor lighting 
energy use enacted prior to January 31, 2008, shall not 
be preempted.’’. 
(5) ENERGY EFFICIENCY STANDARDS FOR CER-
TAIN LUMINAIRES.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of En-
ergy shall, in consultation with the National Elec-
trical Manufacturers Association, collect data for 
United States sales of luminaires described in sec-
tion 340(26)(H) and (M) of the Energy Policy and 
Conservation Act, to determine the historical growth 
rate. If the Secretary finds that the growth in mar-
430 
ket share of such luminaires exceeds twice the year- 
to-year rate of the average of the previous 3 years, 
then the Secretary shall within 12 months initiate a 
rulemaking to determine if such exclusion should be 
eliminated, if substitute products exist that perform 
more efficiently and fulfill the performance functions 
of these luminaires. 
(b) PORTABLE LIGHTING.— 
(1) PORTABLE LIGHT FIXTURES.— 
(A) DEFINITIONS.—Section 321 of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6291) is amended by adding at the end the fol-
lowing: 
‘‘(67) ART WORK LIGHT FIXTURE.—The term 
‘art work light fixture’ means a light fixture de-
signed only to be mounted directly to an art work 
and for the purpose of illuminating that art work. 
‘‘(68) LED LIGHT ENGINE.—The term ‘LED 
light engine’ or ‘LED light engine with integral heat 
sink’ means a subsystem of an LED light fixture 
that— 
‘‘(A) includes 1 or more LED components, 
including— 
‘‘(i) an LED driver power source with 
electrical and mechanical interfaces; and
431 
‘‘(ii) an integral heat sink to provide 
thermal dissipation; and 
‘‘(B) may be designed to accept additional 
components that provide aesthetic, optical, and 
environmental control. 
‘‘(69) LED LIGHT FIXTURE.—The term ‘LED 
light fixture’ means a complete lighting unit con-
sisting of— 
‘‘(A) an LED light source with 1 or more 
LED lamps or LED light engines; and 
‘‘(B) parts— 
‘‘(i) to distribute the light; 
‘‘(ii) to position and protect the light 
source; and 
‘‘(iii) to connect the light source to 
electrical power. 
‘‘(70) LIGHT
FIXTURE.—The term ‘light fix-
ture’ means a product designed to provide light that 
includes— 
‘‘(A) at least 1 lamp socket; and 
‘‘(B) parts— 
‘‘(i) to distribute the light; 
‘‘(ii) position and protect 1 or more 
lamps; and
432 
‘‘(iii) to connect 1 or more lamps to a 
power supply. 
‘‘(71) PORTABLE LIGHT FIXTURE.— 
‘‘(A) IN
GENERAL.—The term ‘portable 
light fixture’ means a light fixture that has a 
flexible cord and an attachment plug for con-
nection to a nominal 120-volt circuit that— 
‘‘(i) allows the user to relocate the 
product without any rewiring; and 
‘‘(ii) typically can be controlled with a 
switch located on the product or the power 
cord of the product. 
‘‘(B) EXCLUSIONS.—The term ‘portable 
light fixture’ does not include— 
‘‘(i) direct plug-in night lights, sun or 
heat lamps, medical or dental lights, port-
able electric hand lamps, signs or commer-
cial 
advertising 
displays, 
photographic 
lamps, germicidal lamps, or light fixtures 
for marine use or for use in hazardous lo-
cations (as those terms are defined in 
ANSI/NFPA 70 of the National Electrical 
Code); or 
‘‘(ii) decorative lighting strings, deco-
rative lighting outfits, or electric candles or
433 
candelabra without lamp shades that are 
covered by Underwriter Laboratories (UL) 
standard 588, ‘Seasonal and Holiday Dec-
orative Products’.’’. 
(B) COVERAGE.— 
(i) IN GENERAL.—Section 322(a) of 
the Energy Policy and Conservation Act 
(42 U.S.C. 6292(a)) is amended— 
(I) by redesignating paragraph 
(20) as paragraph (24); and 
(II) by inserting after paragraph 
(19) the following: 
‘‘(20) Portable light fixtures.’’. 
(ii) 
CONFORMING
AMENDMENTS.— 
Section 325(l) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(l)) is 
amended by striking ‘‘paragraph (19)’’ 
each place it appears in paragraphs (1) 
and (2) and inserting ‘‘paragraph (24)’’. 
(C) TEST
PROCEDURES.—Section 323(b) 
of the Energy Policy and Conservation Act (42 
U.S.C. 6293(b)) is amended by adding at the 
end the following: 
‘‘(19) LED FIXTURES
AND
LED
LIGHT
EN-
GINES.—Test procedures for LED fixtures and LED
434 
light engines shall be based on Illuminating Engi-
neering Society of North America (IESNA) test pro-
cedure LM–79, Approved Method for Electrical and 
Photometric Testing of Solid-State Lighting Devices, 
and IESNA-approved test procedure for testing 
LED light engines.’’. 
(D) STANDARDS.—Section 325 of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6295) is amended— 
(i) by redesignating subsection (ii) as 
subsection (oo); 
(ii) in subsection (oo)(2), as redesig-
nated in clause (i) of this subparagraph, by 
striking ‘‘(hh)’’ each place it appears and 
inserting ‘‘(mm)’’; and 
(iii) by inserting after subsection (hh) 
the following: 
‘‘(ii) PORTABLE LIGHT FIXTURES.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), portable light fixtures manufactured on or 
after January 1, 2012, shall meet 1 or more of the 
following requirements: 
‘‘(A) Be a fluorescent light fixture that 
meets the requirements of the Energy Star Pro-
435 
gram for Residential Light Fixtures, Version 
4.2. 
‘‘(B) Be equipped with only 1 or more 
GU–24 line-voltage sockets, not be rated for 
use with incandescent lamps of any type (as de-
fined in ANSI standards), and meet the re-
quirements of version 4.2 of the Energy Star 
program for residential light fixtures. 
‘‘(C) Be an LED light fixture or a light 
fixture with an LED light engine and comply 
with the following minimum requirements: 
‘‘(i) Minimum light output: 200 
lumens (initial). 
‘‘(ii) Minimum LED light engine effi-
cacy: 40 lumens/watt installed in fixtures 
that meet the minimum light fixture effi-
cacy of 29 lumens/watt or, alternatively, a 
minimum LED light engine efficacy of 60 
lumens/watt for fixtures that do not meet 
the minimum light fixture efficacy of 29 
lumens/watt. 
‘‘(iii) All portable fixtures shall have a 
minimum LED light fixture efficacy of 29 
lumens/watt and a minimum LED light
436 
engine efficacy of 60 lumens/watt by Janu-
ary 1, 2016. 
‘‘(iv) Color Correlated Temperature 
(CCT): 2700K through 4000K. 
‘‘(v) Minimum Color Rendering Index 
(CRI): 75. 
‘‘(vi) Power factor equal to or greater 
than 0.70. 
‘‘(vii) Portable luminaries that have 
internal power supplies shall have zero 
standby power when the luminaire is 
turned off. 
‘‘(viii) LED light sources shall deliver 
at least 70 percent of initial lumens for at 
least 25,000 hours. 
‘‘(D)(i) Be equipped with an ANSI-des-
ignated E12, E17, or E26 screw-based socket 
and be prepackaged and sold together with 1 
screw-based compact fluorescent lamp or screw- 
based LED lamp for each screw-based socket 
on the portable light fixture. 
‘‘(ii) The compact fluorescent or LED 
lamps prepackaged with the light fixture shall 
be fully compatible with any light fixture con-
trols incorporated into the light fixture (for ex-
437 
ample, light fixtures with dimmers shall be 
packed with dimmable lamps). 
‘‘(iii) Compact fluorescent lamps pre-
packaged with light fixtures shall meet the re-
quirements of the Energy Star Program for 
CFLs Version 4.0. 
‘‘(iv) Screw-based LED lamps shall comply 
with the minimum requirements described in 
subparagraph (C). 
‘‘(E) Be equipped with 1 or more single- 
ended, non-screw based halogen lamp sockets 
(line or low voltage), a dimmer control or high- 
low control, and be rated for a maximum of 100 
watts. 
‘‘(2) REVIEW.— 
‘‘(A) REVIEW.—The Secretary shall review 
the criteria and standards established under 
paragraph (1) to determine if revised standards 
are technologically feasible and economically 
justified. 
‘‘(B) COMPONENTS.—The review shall in-
clude consideration of— 
‘‘(i) whether a separate compliance 
procedure is still needed for halogen fix-
tures described in subparagraph (E) and,
438 
if necessary, what an appropriate standard 
for halogen fixtures shall be; 
‘‘(ii) whether the specific technical cri-
teria described in subparagraphs (A), (C), 
and (D)(iii) should be modified; and 
‘‘(iii) which fixtures should be exempt-
ed from the light fixture efficacy standard 
as of January 1, 2016, because the fix-
tures are primarily decorative in nature (as 
defined by the Secretary) and, even if ex-
empted, are likely to be sold in limited 
quantities. 
‘‘(C) TIMING.— 
‘‘(i) 
DETERMINATION.—Not 
later 
than January 1, 2014, the Secretary shall 
publish amended standards, or a deter-
mination that no amended standards are 
justified, under this subsection. 
‘‘(ii) 
STANDARDS.—Any 
standards 
under this paragraph shall take effect on 
January 1, 2016. 
‘‘(3) ART WORK LIGHT FIXTURES.—Art work 
light fixtures manufactured on or after January 1, 
2012, shall— 
‘‘(A) comply with paragraph (1); or
439 
‘‘(B)(i) contain only ANSI-designated E12 
screw-based line-voltage sockets; 
‘‘(ii) have not more than 3 sockets; 
‘‘(iii) be controlled with an integral high/ 
low switch; 
‘‘(iv) be rated for not more than 25 watts 
if fitted with 1 socket; and 
‘‘(v) be rated for not more than 15 watts 
per socket if fitted with 2 or 3 sockets. 
‘‘(4) EXCEPTION
FROM
PREEMPTION.—Not-
withstanding section 327, Federal preemption shall 
not apply to a regulation concerning portable light 
fixtures adopted by the California Energy Commis-
sion on or before January 1, 2014.’’. 
(2) GU–24 BASE LAMPS.— 
(A) DEFINITIONS.—Section 321 of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6291) (as amended by paragraph (1)(A)) is 
amended by adding at the end the following: 
‘‘(72) GU–24.—The term ‘GU–24’ means the 
designation of a lamp socket, based on a coding sys-
tem by the International Electrotechnical Commis-
sion, under which—
440 
‘‘(A) ‘G’ indicates a holder and socket type 
with 2 or more projecting contacts, such as pins 
or posts; 
‘‘(B) ‘U’ distinguishes between lamp and 
holder designs of similar type that are not 
interchangeable due to electrical or mechanical 
requirements; and 
‘‘(C) 24 indicates the distance in millime-
ters between the electrical contact posts. 
‘‘(73) GU–24 ADAPTOR.— 
‘‘(A) IN
GENERAL.—The term ‘GU–24 
Adaptor’ means a 1-piece device, pig-tail, wiring 
harness, or other such socket or base attach-
ment that— 
‘‘(i) connects to a GU–24 socket on 1 
end and provides a different type of socket 
or connection on the other end; and 
‘‘(ii) does not alter the voltage. 
‘‘(B) 
EXCLUSION.—The 
term 
‘GU–24 
Adaptor’ does not include a fluorescent ballast 
with a GU–24 base. 
‘‘(74) GU–24 BASE LAMP.—‘GU–24 base lamp’ 
means a light bulb designed to fit in a GU–24 sock-
et.’’.
442 
tor lamps, inclusive of those specified in paragraph 
(1)(C). 
‘‘(10) REFLECTOR LAMPS.—No later than Jan-
uary 1, 2015, the Secretary shall publish a final rule 
establishing and amending standards for reflector 
lamps, including incandescent reflector lamps. Such 
standards shall be effective no sooner than 3 years 
after publication of the final rule. Such rulemaking 
shall consider incandescent and nonincandescent 
technologies. Such rulemaking shall consider a new 
metric other than lumens-per-watt based on the pho-
tometric distribution of light from such lamps.’’. 
SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS. 
(a) STANDARDS
FOR WATER DISPENSERS, HOT 
FOOD HOLDING CABINETS, AND PORTABLE ELECTRIC 
SPAS.— 
(1) DEFINITIONS.—Section 321 of the Energy 
Policy and Conservation Act (42 U.S.C. 6291), as 
amended by section 211 of this Act, is further 
amended by adding at the end the following: 
‘‘(75) The term ‘water dispenser’ means a fac-
tory-made assembly that mechanically cools and 
heats potable water and that dispenses the cooled or 
heated water by integral or remote means.
443 
‘‘(76) The term ‘bottle-type water dispenser’ 
means a drinking water dispenser designed for dis-
pensing both hot and cold water that uses a remov-
able bottle or container as the source of potable 
water. 
‘‘(77) The term ‘commercial hot food holding 
cabinet’ means a heated, fully-enclosed compartment 
with one or more solid or glass doors that is de-
signed to maintain the temperature of hot food that 
has been cooked in a separate appliance. Such term 
does not include heated glass merchandising cabi-
nets, drawer warmers, commercial hot food holding 
cabinets with interior volumes of less than 8 cubic 
feet, or cook-and-hold appliances. 
‘‘(78) The term ‘portable electric spa’ means a 
factory-built electric spa or hot tub, supplied with 
equipment for heating and circulating water.’’. 
(2) COVERAGE.—Section 322(a) of the Energy 
Policy and Conservation Act (42 U.S.C. 6292(a)), as 
amended by section 211(b)(1)(B) of this Act, is fur-
ther amended by inserting after paragraph (20) the 
following new paragraphs: 
‘‘(21) Bottle type water dispensers. 
‘‘(22) Commercial hot food holding cabinets. 
‘‘(23) Portable electric spas.’’.
444 
(3) TEST PROCEDURES.—Section 323(b) of the 
Energy Policy and Conservation Act (42 U.S.C. 
6293(b)), as amended by section 211(b)(1)(C) of 
this Act, is further amended by adding at the end 
the following: 
‘‘(20) BOTTLE
TYPE
WATER
DISPENSERS.— 
Test procedures for bottle type water dispensers 
shall be based on ‘Energy Star Program Require-
ments for Bottled Water Coolers version 1.1’ pub-
lished by the Environmental Protection Agency. 
Units with an integral, automatic timer shall not be 
tested using section 4D, ‘Timer Usage,’ of the test 
criteria. 
‘‘(21) COMMERCIAL HOT FOOD HOLDING CABI-
NETS.—Test procedures for commercial hot food 
holding cabinets shall be based on the test proce-
dures described in ANSI/ASTM F2140–01 (Test for 
idle energy rate-dry test). Interior volume shall be 
based on the method shown in the Environmental 
Protection Agency’s ‘Energy Star Program Require-
ments for Commercial Hot Food Holding Cabinets’ 
as in effect on August 15, 2003. 
‘‘(22) PORTABLE ELECTRIC SPAS.—Test proce-
dures for portable electric spas shall be based on the 
test method for portable electric spas contained in
445 
section 1604, title 20, California Code of Regula-
tions as amended on December 3, 2008. When the 
American National Standards Institute publishes a 
test procedure for portable electric spas, the Sec-
retary shall revise the Department of Energy’s pro-
cedure.’’. 
(4) STANDARDS.—Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295), as 
amended by section 211 of this Act, is further 
amended by adding after subsection (jj) the fol-
lowing: 
‘‘(kk) BOTTLE TYPE WATER DISPENSERS.—Effec-
tive January 1, 2012, bottle-type water dispensers de-
signed for dispensing both hot and cold water shall not 
have standby energy consumption greater than 1.2 kilo-
watt-hours per day. 
‘‘(ll) COMMERCIAL
HOT
FOOD
HOLDING
CABI-
NETS.—Effective January 1, 2012, commercial hot food 
holding cabinets with interior volumes of 8 cubic feet or 
greater shall have a maximum idle energy rate of 40 watts 
per cubic foot of interior volume. 
‘‘(mm) PORTABLE ELECTRIC SPAS.—Effective Janu-
ary 1, 2012, portable electric spas shall not have a normal-
ized standby power greater than 5(V2⁄3) Watts where 
V=the fill volume in gallons.
446 
‘‘(nn) REVISIONS.—The Secretary of Energy shall 
consider revisions to the standards in subsections (kk), 
(ll), and (mm) in accordance with subsection (o) and pub-
lish a final rule no later than January 1, 2013 establishing 
such revised standards, or make a finding that no revi-
sions are technically feasible and economically justified. 
Any such revised standards shall take effect January 1, 
2016.’’. 
(b) COMMERCIAL FURNACE EFFICIENCY STAND-
ARDS.—Section 342(a) of the Energy Policy and Con-
servation Act (42 U.S.C. 6312(a)) is amended by inserting 
after paragraph (10) the following new paragraph: 
‘‘(11) WARM AIR FURNACES.—Each warm air 
furnace with an input rating of 225,000 Btu per 
hour or more and manufactured after January 1, 
2011, shall meet the following standard levels: 
‘‘(A) GAS-FIRED UNITS.— 
‘‘(i) Minimum thermal efficiency of 80 
percent. 
‘‘(ii) Include an interrupted or inter-
mittent ignition device. 
‘‘(iii) Have jacket losses not exceeding 
0.75 percent of the input rating. 
‘‘(iv) Have either power venting or a 
flue damper.
447 
‘‘(B) OIL-FIRED UNITS.— 
‘‘(i) Minimum thermal efficiency of 81 
percent. 
‘‘(ii) Have jacket losses not exceeding 
0.75 percent of the input rating. 
‘‘(iii) Have either power venting or a 
flue damper.’’. 
SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND 
PROCEDURES. 
(a) DEFINITION OF ENERGY CONSERVATION STAND-
ARD.—Section 321(6) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6291(6)) is amended to read as fol-
lows: 
‘‘(6) ENERGY CONSERVATION STANDARD.— 
‘‘(A) IN GENERAL.—The term ‘energy con-
servation standard’ means 1 or more perform-
ance standards that— 
‘‘(i) for covered products (excluding 
clothes washers, dishwashers, showerheads, 
faucets, water closets, and urinals), pre-
scribe a minimum level of energy efficiency 
or a maximum quantity of energy use, de-
termined in accordance with test proce-
dures prescribed under section 323;
448 
‘‘(ii) for showerheads, faucets, water 
closets, and urinals, prescribe a minimum 
level of water efficiency or a maximum 
quantity of water use, determined in ac-
cordance with test procedures prescribed 
under section 323; and 
‘‘(iii) for clothes washers and dish-
washers— 
‘‘(I) prescribe a minimum level of 
energy efficiency or a maximum quan-
tity of energy use, determined in ac-
cordance with test procedures pre-
scribed under section 323; and 
‘‘(II) may include a minimum 
level of water efficiency or a maximum 
quantity of water use, determined in 
accordance with those test procedures. 
‘‘(B) INCLUSIONS.—The term ‘energy con-
servation standard’ includes— 
‘‘(i) 1 or more design requirements, if 
the requirements were established— 
‘‘(I) on or before the date of en-
actment of this subclause; 
‘‘(II) as part of a direct final rule 
under section 325(p)(4); or
449 
‘‘(III) as part of a final rule pub-
lished on or after January 1, 2012, 
and 
‘‘(ii) any other requirements that the 
Secretary may prescribe under section 
325(r). 
‘‘(C) EXCLUSION.—The term ‘energy con-
servation standard’ does not include a perform-
ance standard for a component of a finished 
covered product, unless regulation of the com-
ponent is specifically authorized or established 
pursuant to this title.’’. 
(b) ADOPTING CONSENSUS TEST PROCEDURES AND 
TEST
PROCEDURES
IN
USE
ELSEWHERE.—Section 
323(b) of the Energy Policy and Conservation Act (42 
U.S.C. 6293(b)), as amended by sections 211 and 212 of 
this Act, is further amended by adding the following new 
paragraph after paragraph (22): 
‘‘(23) CONSENSUS AND ALTERNATE TEST PRO-
CEDURES.— 
‘‘(A) RECEIPT
OF
JOINT
RECOMMENDA-
TION OR ALTERNATE TESTING PROCEDURE.— 
On receipt of— 
‘‘(i) a statement that is submitted 
jointly by interested persons that are fairly
450 
representative of relevant points of view 
(including representatives of manufactur-
ers of covered products, States, and effi-
ciency advocates), as determined by the 
Secretary, and contains recommendations 
with respect to the testing procedure for a 
covered product; or 
‘‘(ii) a submission of a testing proce-
dure currently in use for a covered product 
by a State, nation, or group of nations— 
‘‘(I) if the Secretary determines 
that the recommended testing proce-
dure contained in the statement or 
submission is in accordance with sub-
section (b)(3), the Secretary may 
issue a final rule that establishes an 
energy or water conservation testing 
procedure that is published simulta-
neously with a notice of proposed rule-
making that proposes a new or 
amended energy or water conservation 
testing procedure that is identical to 
the testing procedure established in 
the final rule to establish the rec-
ommended testing procedure (referred
451 
to in this paragraph as a ‘direct final 
rule’); or 
‘‘(II) if the Secretary determines 
that a direct final rule cannot be 
issued based on the statement or sub-
mission, the Secretary shall publish a 
notice of the determination, together 
with an explanation of the reasons for 
the determination. 
‘‘(B) PUBLIC
COMMENT.—The Secretary 
shall solicit public comment for a period of at 
least 110 days with respect to each direct final 
rule issued by the Secretary under subpara-
graph (A)(ii)(I). 
‘‘(C) WITHDRAWAL
OF
DIRECT
FINAL 
RULES.— 
‘‘(i) IN
GENERAL.—Not later than 
120 days after the date on which a direct 
final rule issued under subparagraph 
(A)(ii)(I) is published in the Federal Reg-
ister, the Secretary shall withdraw the di-
rect final rule if— 
‘‘(I) the Secretary receives 1 or 
more adverse public comments relat-
ing to the direct final rule under sub-
452 
paragraph (B)or any alternative joint 
recommendation; and 
‘‘(II) based on the rulemaking 
record relating to the direct final rule, 
the Secretary determines that such 
adverse public comments or alter-
native joint recommendation may pro-
vide a reasonable basis for with-
drawing the direct final rule under 
paragraph (3) or any other applicable 
law. 
‘‘(ii) ACTION ON WITHDRAWAL.—On 
withdrawal of a direct final rule under 
clause (i), the Secretary shall— 
‘‘(I) proceed with the notice of 
proposed rulemaking published simul-
taneously with the direct final rule as 
described in subparagraph (A)(ii)(I); 
and 
‘‘(II) publish in the Federal Reg-
ister the reasons why the direct final 
rule was withdrawn. 
‘‘(iii) TREATMENT OF WITHDRAWN DI-
RECT FINAL RULES.—A direct final rule 
that is withdrawn under clause (i) shall
453 
not be considered to be a final rule for 
purposes of subsection (b). 
‘‘(D) EFFECT
OF
PARAGRAPH.—Nothing 
in this paragraph authorizes the Secretary to 
issue a direct final rule based solely on receipt 
of more than 1 statement containing rec-
ommended test procedures relating to the direct 
final rule.’’. 
(c) UPDATING TELEVISION TEST METHODS.—Sec-
tion 323(b) of the Energy Policy and Conservation Act 
(42 U.S.C. 6293(b)), as amended by sections 211 and 212 
of this Act, and subsection (b) of this section, is further 
amended by adding at the end the following new para-
graph: 
‘‘(24) TELEVISIONS.—(A) On the date of enact-
ment of this paragraph, Appendix H to Subpart B 
of Part 430 of the United States Code of Federal 
Regulations, ‘Uniform Test Method for Measuring 
the Energy Consumption of Television Sets’, is re-
pealed. 
‘‘(B) No later than 12 months after the date of 
enactment of this paragraph the Secretary shall pub-
lish in the Federal Register a final rule prescribing 
a new test method for televisions.’’.
454 
(d) CRITERIA FOR PRESCRIBING NEW OR AMENDED 
STANDARDS.—(1) Section 325(o)(2)(B)(i) of the Energy 
Policy and Conservation Act (42 U.S.C. 6295(o)(2)(B)(i)) 
is amended as follows: 
(A) By striking ‘‘and’’ at the end of subclause 
(VI). 
(B) By redesignating subclause (VII) as sub-
clause (XI). 
(C) By inserting the following new subclauses 
after subclause (VI): 
‘‘(VII) the estimated value of the carbon dioxide 
and other emission reductions that will be achieved 
by virtue of the higher energy efficiency of the cov-
ered products resulting from the imposition of the 
standard; 
‘‘(VIII) the estimated impact of standards for a 
particular product on average consumer energy 
prices; 
‘‘(IX) the increased energy efficiency that may 
be attributable to the installation of Smart Grid 
technologies or capabilities in the covered products, 
if applicable in the determination of the Secretary; 
‘‘(X) the availability in the United States or in 
other nations of examples or prototypes of covered
455 
products that achieve significantly higher efficiency 
standards for energy or for water; and’’. 
(2) Section 325(o)(2)(B)(iii) of such Act is amended 
as follows: 
(A) By striking ‘‘three’’ and inserting ‘‘5’’. 
(B) By inserting after the first sentence the fol-
lowing ‘‘For products with an average expected use-
ful life of less than 5 years, such rebuttable pre-
sumption shall be determined utilizing 75 percent of 
the product’s average expected useful life as a multi-
plier instead of 5.’’. 
(C) By striking the last sentence and inserting 
the following: ‘‘Such a presumption may be rebutted 
only if the Secretary finds, based on clear, con-
vincing, and reliable evidence, that— 
‘‘(I) such standard level would cause serious 
and unavoidable hardship to the average consumer 
of the product, or to manufacturers supplying a sig-
nificant portion of the market for the product, that 
substantially outweighs the standard level’s benefits; 
‘‘(II) the standard and implementing regula-
tions cannot be designed to avoid or mitigate the 
hardship identified under subclause (I), through the 
adoption of regional standards consistent with para-
456 
graph (6) of this subsection, or other reasonable 
means consistent with this part; 
‘‘(III) the same or substantially similar hard-
ship would not occur under a standard adopted in 
the absence of the presumption, but that otherwise 
meets the requirements of this section; and 
‘‘(IV) the hardship cannot be avoided or miti-
gated pursuant the procedures specified in section 
504 of the Department of Energy Organization Act 
(42 U.S.C. 7194). 
A determination by the Secretary that the criteria trig-
gering such presumption are not met, or that the criterion 
for rebutting the presumption are met shall not be taken 
into consideration in the Secretary’s determination of 
whether a standard is economically justified.’’. 
(e) OBTAINING
APPLIANCE
INFORMATION
FROM 
MANUFACTURERS.—Section 326(d) of the Energy Policy 
and Conservation Act (42 U.S.C. 6295(d)) is amended to 
read as follows: 
‘‘(d) INFORMATION REQUIREMENTS.—(1) For pur-
poses of carrying out this part, the Secretary shall publish 
proposed regulations not later than 1 year after the date 
of enactment of the American Clean Energy and Security 
Act of 2009, and after receiving public comment, final reg-
ulations not later than 18 months from such date of enact-
457 
ment under this part or other provision of law adminis-
tered by the Secretary, which shall require each manufac-
turer of a covered product to submit information or re-
ports to the Secretary on an annual basis in a form adopt-
ed by the Secretary. Such reports shall include informa-
tion or data with respect to— 
‘‘(A) the manufacturers’ compliance with all re-
quirements applicable pursuant to this part; 
‘‘(B) the economic impact of any proposed en-
ergy conservation standard; 
‘‘(C) the manufacturers’ annual shipments of 
each class or category of covered products, orga-
nized, to the maximum extent practicable, by— 
‘‘(i) energy efficiency, energy use, and, if 
applicable, water use; 
‘‘(ii) the presence or absence of such effi-
ciency related or energy consuming operational 
characteristics or components as the Secretary 
determines are relevant for the purposes of car-
rying out this part; and 
‘‘(iii) the State or regional location of sale, 
for covered products for which the Secretary 
may adopt regional standards; and 
‘‘(D) such other categories of information as 
the Secretary deems relevant to carry out this part,
458 
including such other information as may be nec-
essary to establish and revise test procedures, label-
ing rules, and energy conservation standards and to 
insure compliance with the requirements of this 
part. 
‘‘(2) In adopting regulations under this subsection, 
the Secretary shall consider existing public sources of in-
formation, including nationally recognized certification 
programs of trade associations. 
‘‘(3) The Secretary shall exercise authority under this 
section in a manner designed to minimize unnecessary 
burdens on manufacturers of covered products. 
‘‘(4) To the extent that they do not conflict with the 
duties of the Secretary in carrying out this part, the provi-
sions of section 11(d) of the Energy Supply and Environ-
mental Coordination Act of 1974 (15 U.S.C. 796(d)) shall 
apply with respect to information obtained under this sub-
section to the same extent and in the same manner as 
they apply with respect to other energy information ob-
tained under such section.’’. 
(f) STATE WAIVER.—Section 327(c) of the Energy 
Policy and Conservation Act (42 U.S.C. 6297(c)), as 
amended by section 161(a)(19) of this Act, is further 
amended by adding at the end the following:
459 
‘‘(12) is a regulation concerning standards for 
hot food holding cabinets, drinking water dispensers 
and portable electric spas adopted by the California 
Energy Commission on or before January 1, 2013.’’. 
(g) WAIVER OF FEDERAL PREEMPTION.—Paragraph 
(1) of section 327(d) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6297(d)) is amended as follows: 
(1) In subparagraph (A) by striking ‘‘State reg-
ulation’’ each place it appears and inserting ‘‘State 
statute or regulation’’. 
(2) In subparagraph (B) by adding at the end 
the following new sentence: ‘‘In making such a find-
ing, the Secretary may not reject a petition for fail-
ure of the petitioning State or river basin commis-
sion to produce confidential information maintained 
by any manufacturer or distributor, or group or as-
sociation of manufacturers or distributors, and 
which the petitioning party does not have the legal 
right to obtain.’’. 
(3) In clause (ii) of subparagraph (C) by strik-
ing ‘‘costs’’ each place it appears and inserting ‘‘es-
timated costs’’. 
(4) In subparagraph (C) by striking ‘‘within the 
context of the State’s energy plan and forecast, 
and,’’.
460 
(h) INCLUSION OF CARBON OUTPUT ON APPLIANCE 
‘‘ENERGYGUIDE’’ LABELS.—(1) Section 324(a)(2) of the 
Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding the following at the 
end: 
‘‘(I)(i) Not later than 90 days after the date of enact-
ment of this subparagraph, the Commission shall initiate 
a rulemaking to implement the additional labeling require-
ments specified in subsection (c)(1)(C) of this section with 
an effective date for the revised labeling requirement not 
later than 12 months from issuance of the final rule. 
‘‘(ii) Not later than 24 months after the date of en-
actment of this subparagraph, the Commission shall com-
plete the rulemaking initiated under clause (i). 
‘‘(iii) Not later than 90 days after issuance of the 
final rule as provided in this subparagraph, the Secretary 
shall issue calculation methods required to effectuate the 
labeling requirements specified in subsection (c)(1)(C) of 
this section.’’. 
(2) Section 324(c)(1) of the Energy Policy and Con-
servation Act (42 U.S.C. 6294(c)(1)) is amended— 
(A) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(B) by striking the period at the end of sub-
paragraph (B) and inserting a semicolon; and
461 
(C) by adding at the end the following new sub-
paragraphs: 
‘‘(C) for products or groups of products pro-
viding a comparable function (including the group of 
products comprising the heating function of heat 
pumps and furnaces) among covered products listed 
in paragraphs (3), (4), (5), (8), (9), (10), and (11) 
of section 322(a) of this part, and others designated 
by the Secretary, the estimated total annual atmos-
pheric carbon dioxide emissions (or their equivalent 
in other greenhouse gases) associated with, or 
caused by, the product, calculated utilizing— 
‘‘(i) national average energy use for the 
product including energy consumed at the point 
of end use based on test procedures developed 
under section 323 of this part; 
‘‘(ii) national average energy consumed or 
lost in the production, generation, transpor-
tation, storage, and distribution of energy to 
the point of end use; and 
‘‘(iii) any direct emissions of greenhouse 
gases from the product during normal use; 
‘‘(D) in determining the national average 
energy consumption and total annual atmos-
pheric carbon dioxide emissions, the Secretary
462 
shall utilize Federal Government sources, in-
cluding the Energy Information Administration 
Annual Energy Review, the Environmental Pro-
tection Agency eGRID database, Environmental 
Protection Agency AP–42 Emission Factors as 
amended, and other sources determined to be 
appropriate by the Secretary; and 
‘‘(E) information presenting, for each 
product (or group of products providing the 
comparable function) identified in section 
(c)(1)(C) of this section, the estimated annual 
carbon dioxide emissions calculated within the 
range of emissions calculated for all models of 
the product or group according to its function, 
including those models consuming fuels and 
those models not consuming fuels.’’. 
(i) PERMITTING STATES TO SEEK INJUNCTIVE EN-
FORCEMENT.—(1) Section 334 of the Energy Policy and 
Conservation Act (42 U.S.C. 6304) is amended to read 
as follows: 
‘‘SEC. 334. JURISDICTION AND VENUE. 
‘‘(a) JURISDICTION.—The United States district 
courts shall have jurisdiction to restrain— 
‘‘(1) any violation of section 332; and
463 
‘‘(2) any person from distributing in commerce 
any covered product which does not comply with an 
applicable rule under section 324 or 325. 
‘‘(b) AUTHORITY.—Any action referred to in sub-
section (a) shall be brought by the Commission or by the 
attorney general of a State in the name of the State, ex-
cept that— 
‘‘(1) any such action to restrain any violation of 
section 332(a)(3) which relates to requirements pre-
scribed by the Secretary or any violation of section 
332(a)(4) which relates to request of the Secretary 
under section 326(b)(2) shall be brought by the Sec-
retary; and 
‘‘(2) any violation of section 332(a)(5) or 
332(a)(7) shall be brought by the Secretary or by 
the attorney general of a State in the name of the 
State. 
‘‘(c) VENUE AND SERVICE OF PROCESS.—Any such 
action may be brought in the United States district court 
for a district wherein any act, omission, or transaction 
constituting the violation occurred, or in such court of the 
district wherein the defendant is found or transacts busi-
ness. In any action under this section, process may be 
served on a defendant in any other district in which the 
defendant resides or may be found.’’.
464 
(2) The item relating to section 334 in the table of 
contents for such Act is amended to read as follows: 
‘‘Sec. 334. Jurisdiction and venue.’’. 
(j) TREATMENT OF APPLIANCES WITHIN BUILDING 
CODES.—(1) Section 327(f)(3) of the Energy Policy and 
Conservation Act (42 U.S.C. 6297(f)(3)) is amended by 
striking subparagraphs (B) through (G) and inserting the 
following: 
‘‘(B) The code meets at least one of the fol-
lowing requirements: 
‘‘(i) The code does not require that the 
covered product have an energy efficiency ex-
ceeding— 
‘‘(I) the applicable energy conserva-
tion standard established in or prescribed 
under section 325; 
‘‘(II) the level required by a regula-
tion of that State for which the Secretary 
has issued a rule granting a waiver under 
subsection (d) of this section; or 
‘‘(III) the required level established in 
the International Energy Conservation 
Code or in a standard of the American So-
ciety of Heating, Refrigerating and Air- 
Conditioning Engineers, or by the Sec-
465 
retary pursuant to section 304 of the En-
ergy Conservation and Production Act. 
‘‘(ii) If the code uses one or more baseline 
building designs against which all submitted 
building designs are to be evaluated and such 
baseline building designs contain a covered 
product subject to an energy conservation 
standard established in or prescribed under sec-
tion 325, the baseline building designs are 
based on an efficiency level for such covered 
product which meets but does not exceed one of 
the levels specified in clause (i). 
‘‘(iii) If the code sets forth one or more op-
tional combinations of items which meet the en-
ergy consumption or conservation objective, in 
at least one combination that the State has 
found to be reasonably achievable using com-
mercially available technologies the efficiency of 
the covered product meets but does not exceed 
one of the levels specified in clause (i). 
‘‘(C) The credit to the energy consumption or 
conservation objective allowed by the code for install-
ing covered products having energy efficiencies ex-
ceeding one of the levels specified in subparagraph 
(B)(i) is on a one-for-one equivalent energy use or
466 
equivalent energy cost basis, taking into account the 
typical lifetime of the product. 
‘‘(D) The energy consumption or conservation 
objective is specified in terms of an estimated total 
consumption of energy (which may be calculated 
from energy loss- or gain-based codes) utilizing an 
equivalent amount of energy (which may be specified 
in units of energy or its equivalent cost) and equiva-
lent lifetimes. 
‘‘(E) The estimated energy use of any covered 
product permitted or required in the code, or used 
in calculating the objective, is determined using the 
applicable test procedures prescribed under section 
323, except that the State may permit the estimated 
energy use calculation to be adjusted to reflect the 
conditions of the areas where the code is being ap-
plied if such adjustment is based on the use of the 
applicable test procedures prescribed under section 
323 or other technically accurate documented proce-
dure.’’. 
(2) Section 327(f)(4)(B) of the Energy Policy 
and Conservation Act (42 U.S.C. 6297(f)(4)(B)) is 
amended to read as follows: 
‘‘(B) If a building code requires the installation of 
covered products with efficiencies exceeding the levels and
467 
requirements specified in paragraph (3)(B), such require-
ment of the building code shall not be applicable unless 
the Secretary has granted a waiver for such requirement 
under subsection (d) of this section.’’. 
SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PRO-
GRAM. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Energy, 
in consultation with the Administrator, shall establish a 
program to be known as the ‘‘Best-in-Class Appliances 
Deployment Program’’ to— 
(1) provide bonus payments to retailers or dis-
tributors under subsection (c) for sales of best-in- 
class high-efficiency household appliance models, 
high-efficiency installed building equipment, and 
high-efficiency consumer electronics, with the goal of 
reducing life-cycle costs for consumers, encouraging 
innovation, and maximizing energy savings and pub-
lic benefit; 
(2) provide bounties under subsection (d) to re-
tailers and manufacturers for the replacement, re-
tirement, and recycling of old, inefficient, and envi-
ronmentally harmful products; and
468 
(3) provide premium awards under subsection 
(e) to manufacturers for developing and producing 
new Superefficient Best-in-Class Products. 
(b) DESIGNATION
OF
BEST-IN-CLASS
PRODUCT 
MODELS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall designate product models of appliances, equip-
ment, or electronics as Best-in-Class Product mod-
els. The Secretary shall publicly announce the Best- 
in-Class Product models designated under this sub-
section. The Secretary shall define product classes 
broadly and, except as provided in paragraph (2), 
shall designate as Best-in-Class Product models no 
more than the most efficient 10 percent of the com-
mercially available product models in a class that 
demonstrate, as a group, a distinctly greater energy 
efficiency than the average energy efficiency of that 
class of appliances, equipment, or electronics. In des-
ignating models, the Secretary shall— 
(A) identify commercially available models 
in the relevant class of products; 
(B) identify the subgroup of those models 
that share the distinctly higher energy-effi-
ciency characteristics that warrant designation 
as best-in-class; and
469 
(C) add other models in that class to the 
list of Best-in-Class Product models as they 
demonstrate their ability to meet the higher-ef-
ficiency characteristics on which the designation 
was made. 
(2) PERCENTAGE
EXCEPTION.—If there are 
fewer than 10 product models in a class of products, 
the Secretary may designate one or more of such 
models as Best-in-Class Products. 
(3) REVIEW OF BEST-IN-CLASS STANDARDS.— 
The Secretary shall review annually the product-spe-
cific criteria for designating, and the product models 
that qualify as, Best-in-Class Products and, after 
notice and a 30-day comment period, make upwards 
adjustments in the efficiency criteria as necessary to 
maintain an appropriate ratio of such product mod-
els to the total number of product models in the 
product class. 
(4) SMART
GRID
ENERGY
EFFICIENCY
SAV-
INGS.—The Secretary shall include energy efficiency 
savings achieved by a commercially available product 
having smart grid capability in determining the effi-
ciency level of a product for purposes of a Best-In- 
Class Product designation pursuant to this sub-
section. In measuring energy efficiency savings
470 
achieved by smart grid capability, the Secretary 
shall use a metric that— 
(A) is based on the time-differentiated 
value and amount of energy consumption; 
(B) accounts for the capability of the prod-
uct to respond to a smart grid in which the 
physical capability of the product to save or 
delay energy because of a smart grid feature is 
weighted by the likelihood that the feature will 
be used; 
(C) is based on the value of a unit of elec-
tric or gas consumption as a function of time 
of day and season; and 
(D) includes a test method by which the 
manufacturer shall determine the energy effi-
ciency of smart grid capable products. 
(c) BONUSES FOR SALES OF BEST-IN-CLASS PROD-
UCTS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall make bonus payments to retailers or, as pro-
vided in paragraph (5)(B), distributors for the sale 
of Best-in-Class Products. 
(2) BONUS PROGRAM.—The Secretary shall— 
(A) publicly announce the availability and 
amount of the bonus to be paid for each sale
471 
of a Best-in-Class Product of a model des-
ignated under subsection (b); and 
(B) make bonus payments in at least that 
amount for each Best-in-Class Product of that 
model sold during the 3-year period beginning 
on the date the model is designated under sub-
section (b). 
(3) UPGRADE OF BEST-IN-CLASS PRODUCT ELI-
GIBILITY.—In conducting a review under subsection 
(b)(3), the Secretary shall— 
(A) consider designating as a Best-in-Class 
Product model a Superefficient Best-in-Class 
Product model that has been designated pursu-
ant to subsection (e); 
(B) announce any change in the bonus 
payment as necessary to increase the market 
share of Best-in-Class Product models; 
(C) list models that will be eligible for bo-
nuses in the new amount; and 
(D) continue paying bonus payments at 
the original level, for the sale of any models 
that previously qualified as Best-in-Class Prod-
ucts but do not qualify at the new level, for the 
remainder of the 3-year period announced with 
the original designation.
472 
(4) SIZE OF INDIVIDUAL BONUS PAYMENTS.— 
(A) The size of each bonus payment under this sub-
section shall be the product of— 
(i) an amount determined by the Sec-
retary; and 
(ii) the difference in energy consumption 
between the Best-in-Class Product and the av-
erage product in the product class. 
(B) The Secretary shall determine the amount 
under subparagraph (A)(i) for each product type, in 
consultation with State and utility efficiency pro-
gram administrators as well as the Administrator, 
based on estimates of the amount of bonus payment 
that would provide significant incentive to increase 
the market share of Best-in-Class Products. 
(5) ELIGIBLE
BONUS
RECIPIENT.—(A) The 
Secretary shall ensure that not more than 1 bonus 
payment is provided under this subsection for each 
Best-in-Class Product. 
(B) The Secretary may make distributors eligi-
ble to receive bonus payments under this subsection 
for sales that are not to the final end-user, to the 
extent that the Secretary determines that for a par-
ticular product category distributors are well situ-
ated to increase sales of Best-in-Class Products.
473 
(d) BOUNTIES
FOR REPLACEMENT, RETIREMENT, 
AND RECYCLING OF EXISTING LOW-EFFICIENCY PROD-
UCTS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall make bounty payments to— 
(A) retailers for the replacement, retire-
ment, and recycling of older operating low-effi-
ciency products that might otherwise continue 
in operation; and 
(B) manufacturers of Superefficient Best- 
in-Class Products for the retirement and recy-
cling of older operating low-efficiency products 
that perform the same function and which 
might otherwise continue in operation. 
(2) BOUNTIES.—Bounties shall be payable— 
(A) to a retailer upon documentation that 
the sale of a Best-in-Class Product was accom-
panied by the replacement, retirement, and re-
cycling of— 
(i) an inefficient but still-functioning 
product; or 
(ii) a nonfunctioning product con-
taining a refrigerant, by the consumer to 
whom the Best-in-Class Product was sold; 
and
474 
(B) to a manufacturer upon documentation 
of the retirement and recycling of— 
(i) an inefficient but still-functioning 
product from a consumer to whom a 
Superefficient Best-in-Class Product was 
delivered; or 
(ii) a nonfunctioning product con-
taining a refrigerant from a consumer to 
whom a Superefficient Best-in-Class Prod-
uct was delivered. 
(3) AMOUNT.— 
(A) FUNCTIONING PRODUCTS.—The boun-
ty payment payable under this subsection for a 
product described in paragraphs (2)(A)(i) and 
(2)(B)(i) shall be based on the difference be-
tween the estimated energy use of the product 
replaced and the energy use of an average new 
product in the product class, over the estimated 
remaining lifetime of the product that was re-
placed. 
(B) NONFUNCTIONING
PRODUCTS
CON-
TAINING REFRIGERANTS.—The bounty payment 
payable under this subsection for a product de-
scribed in paragraphs (2)(A)(ii) and (2)(B)(ii) 
shall be in the amount that the Secretary of
475 
Energy, in consultation with the Administrator, 
determines is sufficient to promote the recycling 
of such products, up to the amount of bounty 
for a comparable product described in para-
graphs (2)(A) and (2)(B). 
(4) RETIREMENT.—The Secretary shall ensure 
that no product for which a bounty is paid under 
this subsection is returned to active service, but that 
it is instead destroyed, and recycled to the extent 
feasible. 
(5) RECYCLING APPLIANCES CONTAINING RE-
FRIGERANTS.—Exclusively for the purpose of imple-
menting the bounty payment program for products 
containing a refrigerant under this section, the Ad-
ministrator shall establish standards for environ-
mentally responsible methods of recycling and dis-
posal of refrigerant-containing appliances that, at a 
minimum, meet the requirements set by the Respon-
sible Appliance Disposal (RAD) Program for refrig-
erant disposal. The Secretary shall ensure that such 
standards are met before a bounty payment is made 
under this subsection for a product containing a re-
frigerant. Nothing in this section shall be interpreted 
to alter the requirements of section 608 of the Clean
476 
Air Act or to relieve any person from complying with 
those requirements. 
(e) PREMIUM AWARDS
FOR DEVELOPMENT
AND 
PRODUCTION OF SUPEREFFICIENT BEST-IN-CLASS PROD-
UCTS.— 
(1) IN GENERAL.—(A) The Secretary of Energy 
shall provide premium awards to manufacturers for 
the development and production of Superefficient 
Best-in-Class Products. The Secretary shall set and 
periodically revise standards for eligibility of prod-
ucts for designation as a Superefficient Best-in- 
Class Product. 
(B) The Secretary may establish a standard for 
a Superefficient Best-in-Class Product even if no 
product meeting that standard exists, if the Sec-
retary has reasonable grounds to conclude that a 
mass-producible product could be made to meet that 
standard. 
(C) The Secretary may also establish a Super-
efficient Best-in-Class Product standard that is met 
by one or more existing Best-in-Class Product mod-
els, if those product models have distinct energy effi-
ciency attributes and performance characteristics 
that make them significantly better than other prod-
uct models qualifying as best-in-class. The Secretary
477 
may not designate as Superefficient Best-in-Class 
Products under this subparagraph models that rep-
resent more than 10 percent of the currently quali-
fying Best-in-Class Product models. This subpara-
graph shall not apply to products designated pursu-
ant to paragraph (4)(A). 
(D) In making its finding on the efficiency level 
a product can achieve for purposes of a Supereffi-
cient Best-In-Class Product designation pursuant to 
this paragraph, the Secretary shall include energy 
efficiency savings that would be achieved by a prod-
uct as a result of smart grid capability when a prod-
uct having such capability can be produced and sold 
commercially to mass market consumers. In meas-
uring energy efficiency savings achieved by smart 
grid capability, the Secretary shall use a metric 
that— 
(i) is based on the time-differentiated value 
and amount of energy consumption; 
(ii) accounts for the capability of the prod-
uct to respond to a smart grid in which the 
physical capability of the product to save or 
delay energy because of a smart grid feature is 
weighted by the likelihood that the feature will 
be used;
478 
(iii) is based on the value of a unit of elec-
tric or gas consumption as a function of time 
of day and season; and 
(iv) includes a test method by which the 
manufacturer shall determine the energy effi-
ciency of smart grid capable products. 
(2) PREMIUM
AWARDS.—(A) The premium 
award payment provided to a manufacturer under 
this subsection shall be in addition to any bonus 
payments made under subsection (c). 
(B) The amount of the premium award paid 
per unit of Superefficient Best-in-Class Products 
sold to retailers or distributors shall, except as pro-
vided by subparagraph (F), be the product of— 
(i) an amount determined by the Sec-
retary; and 
(ii) the difference in energy consumption 
between the Superefficient Best-in-Class Prod-
uct and the average product in the product 
class. 
(C) The Secretary shall determine the amount 
under subparagraph (B)(i) for each product type, in 
consultation with State and utility efficiency pro-
gram administrators as well as the Administrator, 
based on consideration of the present value to the
479 
Nation of the energy (and water or other resources 
or inputs) saved over the useful life of the product. 
The Secretary may also take into consideration the 
methods used to increase sales of qualifying prod-
ucts in determining such amount. 
(D) The Secretary may adjust the value de-
scribed in subparagraph (C) upward or downward as 
appropriate, including based on the effect of the pre-
mium awards on the sales of products in different 
classes that may be affected by the program under 
this subsection. 
(E) Premium award payments shall be applied 
to sales of any Superefficient Best-in-Class Product 
for the first 3 years after designation as a Supereffi-
cient Best-in-Class Product. 
(F) For years 2011 through 2013, the Sec-
retary shall make bonus payments to manufacturers 
of the products designated in paragraph (4)(A) for 
each product produced in the following amounts: 
(i) $75 for each dishwasher. 
(ii) $250 for each clothes washer. 
(iii) $200 for each refrigerator or refrig-
erator-freezer. 
(iv) $250 for each clothes dryer. 
(v) $200 for each cooking product.
480 
(vi) $300 for each water heater. 
(3) COORDINATION OF INCENTIVES.—No prod-
uct for which Federal tax credit is received under 
section 45M of the Internal Revenue Code of 1986 
shall be eligible to receive premium award payments 
pursuant to this subsection. 
(4) DESIGNATIONS.— 
(A) 
INITIAL
DESIGNATIONS.—Notwith-
standing any other provisions of this section, 
the products the Secretary shall designate as a 
Superefficient Best-In-Class Product include, 
but are not limited to, the following products 
manufactured in 2011 through 2013: 
(i) A dishwasher, clothes washer, re-
frigerator, 
or 
refrigerator-freezer 
that 
meets the highest efficiency performance 
standards in its product category as pro-
vided in Section 305(b) of the Emergency 
Economic Stabilization Act of 2008 and 
has the smart grid capability specified in 
paragraph (5). 
(ii) A water heater that meets an effi-
ciency standard that is the same or equiva-
lent to the standard provided in Section 
1333 of the Energy Policy Act of 2005
481 
and has the smart grid capability specified 
in paragraph (5). 
(iii) A clothes dryer or cooking prod-
uct that the Secretary determines meets 
the standards specified in subsection (j)(3), 
which the Secretary shall promulgate no 
later than 1 year after the date of enact-
ment, and has the smart grid capability 
specified in paragraph (5). 
(B) EXTENSION
OF
INITIAL
DESIGNA-
TIONS.— 
(i) GENERAL.—The Secretary shall in 
2013 extend the Superefficient Best-In- 
Class Product designation of each product 
specified in subparagraph (A)(i) through 
(iii) through 2017, provided that for each 
product designation extended— 
(I) the extension will result in 
significant energy efficiency savings; 
(II) the product meets the Super-
efficient Best-In-Class Product cri-
teria specified in paragraph (1); 
(III) the eligibility standards of 
the product include the smart grid ca-
482 
pability specified in paragraph (5); 
and 
(IV) the Secretary makes appro-
priate revisions to the eligibility stand-
ards of the product as provided by 
paragraph (1). 
(ii) AWARDS.—If a Superefficient 
Best-In-Class Product designation for a 
product is extended pursuant to this sub-
paragraph, the premium award for the 
product shall be determined in accordance 
with paragraph (2). 
(5) SMART GRID CAPABILITY.— 
(A) Until the Secretary promulgates cri-
teria under subparagraph (B), the term ‘‘smart 
grid capability’’ means capability of receiving 
and interpreting time-of-use pricing and peak- 
load-shed signals from a utility and— 
(i) in the case of a cooking product, 
reducing a minimum of 20 percent during 
peak demand as measured by the tested 
average wattage over the course of a typ-
ical operating cycle of the product; or 
(ii) in the case of a clothes washer, a 
refrigerator, a dishwasher, a dryer and a
483 
water heater, reducing a minimum of 50 
percent during peak demand as measured 
by the tested average wattage over the 
course of a typical operating cycle of the 
product, provided that the typical oper-
ating cycle of a refrigerator and a water 
heater shall be a 24-hour period. 
(B) After completion of the analysis re-
quired under section 142(b) of this Act, the 
Secretary shall expeditiously promulgate, after 
notice and a 30-day public comment period, cri-
teria for what constitutes ‘‘smart grid capa-
bility.’’ 
(f) REPORTING.—The Secretary of Energy shall re-
quire, as a condition of receiving a bonus, bounty, or pre-
mium award under this section, that a report containing 
the following documentation be provided: 
(1) For retailers and distributors, the number 
of units sold within each product type, and model- 
specific wholesale purchase prices and retail sale 
prices, on a monthly basis. 
(2) For manufacturers, model-specific energy 
efficiency and consumption data. 
(3) For manufacturers, on an immediate basis, 
information concerning any product design or func-
484 
tion changes that affect the energy consumption of 
the unit. 
(4) The methods used to increase the sales of 
qualifying products. 
(g) MONITORING AND VERIFICATION PROTOCOLS.— 
The Secretary of Energy shall establish monitoring and 
verification protocols for energy consumption tests for 
each product model and for sales of energy-efficient mod-
els. The Secretary shall estimate actual savings of energy 
from the use of Smart Grid capability in appliances for 
which premium award payments are made pursuant to 
subsection (e) as a function of utility and consumer readi-
ness to utilize such capability. 
(h) DISCLOSURE.—The Secretary of Energy may re-
quire that manufacturers, retailers and distributors dis-
close publicly and to consumers their participation in the 
program under this section. 
(i) COST-EFFECTIVENESS REQUIREMENT.— 
(1) REQUIREMENT.—The Secretary of Energy 
shall make cost-effectiveness a top priority in design-
ing the program under, and administering, this sec-
tion, except that the cost-effectiveness of providing 
premium awards to manufacturers under subsection 
(e), in aggregate, may be lower by this measure than
485 
that of the bonuses and bounties to retailers and 
distributors under subsections (c) and (d). 
(2) DEFINITIONS.—In this subsection: 
(A) 
COST-EFFECTIVENESS.—The 
term 
‘‘cost-effectiveness’’ means a measure of aggre-
gate savings in the cost of energy over the life-
time of a product in relation to the cost to the 
Secretary of the bonuses, bounties, and pre-
mium awards provided under this section for a 
product. 
(B) SAVINGS.—The term ‘‘savings’’ means 
the cumulative megawatt-hours of electricity or 
million British thermal units of other fuels 
saved by a product during the projected useful 
life of the product, in comparison to projected 
energy consumption of the average product in 
the same class, taking into consideration the 
impact of any documented measures to replace, 
retire, and recycle low-efficiency products at the 
time of purchase of highly-efficient substitutes. 
(j) DEFINITIONS.—In this section— 
(1) the term ‘‘distributor’’ mean an individual, 
organization, or company that sells products in mul-
tiple lots and not directly to end-users;
486 
(2) the term ‘‘retailer’’ means an individual, or-
ganization, or company that sells products directly 
to end-users; 
(3) the term ‘‘manufacturer’’ means an indi-
vidual, organization, or company that transforms 
raw materials into mass-producible finished goods; 
and 
(4) the term ‘‘Superefficient Best-in-Class 
Product’’ means a product that— 
(A) can be mass produced; and 
(B) achieves the highest level of efficiency 
that the Secretary of Energy finds can, given 
the current state of technology, be produced 
and sold commercially to mass-market con-
sumers. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $600,000,000 for each 
of the fiscal years 2011 through 2013 to the Secretary 
of Energy for purposes of this section, and such sums as 
may be necessary for subsequent fiscal years. Of funds 
appropriated, not more than 10 percent for any fiscal year 
may be expended on program administration, and not less 
than 40 percent of any funds appropriated during fiscal 
years 2011 through 2013 shall be for purposes of sub-
section (e).
487 
SEC. 215. WATERSENSE. 
(a) IN GENERAL.—There is established within the 
Environmental Protection Agency a WaterSense program 
to identify and promote water efficient products, buildings 
and landscapes, and services in order— 
(1) to reduce water use; 
(2) to reduce the strain on water, wastewater, 
and stormwater infrastructure; 
(3) to conserve energy used to pump, heat, 
transport, and treat water; and 
(4) to preserve water resources for future gen-
erations, 
through voluntary labeling of, or other forms of commu-
nications about, products, buildings and landscapes, and 
services that meet the highest water efficiency and per-
formance standards. 
(b) DUTIES.—The Administrator shall— 
(1) promote WaterSense labeled products, 
buildings and landscapes, and services in the market 
place as the preferred technologies and services 
for— 
(A) reducing water use; and 
(B) ensuring product and service perform-
ance;
488 
(2) work to enhance public awareness of the 
WaterSense label through public outreach, edu-
cation, and other means; 
(3) establish and maintain performance stand-
ards so that products, buildings and landscapes, and 
services labeled with the WaterSense label perform 
as well or better than their less efficient counter-
parts; 
(4) publicize the need for proper installation 
and maintenance of WaterSense products by a li-
censed, and where certification guidelines exist, 
WaterSense-certified professional to ensure optimal 
performance; 
(5) preserve the integrity of the WaterSense 
label; 
(6) regularly review and, when appropriate, up-
date WaterSense criteria for categories of products, 
buildings and landscapes, and services, at least once 
every 4 years; 
(7) to the extent practical, regularly estimate 
and make available to the public the production and 
relative market shares of WaterSense labeled prod-
ucts, buildings and landscapes, and services, at least 
annually;
489 
(8) to the extent practical, regularly estimate 
and make available to the public the water and en-
ergy savings attributable to the use of WaterSense 
labeled products, buildings and landscapes, and serv-
ices, at least annually; 
(9) solicit comments from interested parties and 
the public prior to establishing or revising a 
WaterSense category, specification, installation cri-
terion, or other criterion (or prior to effective dates 
for any such category, specification, installation cri-
terion, or other criterion); 
(10) provide reasonable notice to interested par-
ties and the public of any changes (including effec-
tive dates), on the adoption of a new or revised cat-
egory, specification, installation criterion, or other 
criterion, along with— 
(A) an explanation of changes; and 
(B) as appropriate, responses to comments 
submitted by interested parties; 
(11) provide appropriate lead time (as deter-
mined by the Administrator) prior to the applicable 
effective date for a new or significant revision to a 
category, specification, installation criterion, or other 
criterion, taking into account the timing require-
ments of the manufacturing, marketing, training,
490 
and distribution process for the specific product, 
building and landscape, or service category ad-
dressed; and 
(12) identify and, where appropriate, implement 
other voluntary approaches in commercial, institu-
tional, residential, municipal, and industrial sectors 
to encourage reuse and recycling technologies, im-
prove water efficiency, or lower water use while 
meeting, where applicable, the performance stand-
ards established under paragraph (3). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $7,500,000 for fiscal 
year 2010, $10,000,000 for fiscal year 2011, $20,000,000 
for fiscal year 2012, and $50,000,000 for fiscal year 2013 
and each year thereafter, adjusted for inflation, to carry 
out this section. 
SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT 
PRODUCTS. 
(a) DEFINITIONS.—In this section: 
(1) AGENCY.—The term ‘‘agency’’ has the 
meaning given that term in section 7902(a) of title 
5, United States Code. 
(2) WATERSENSE PRODUCT OR SERVICE.—The 
term ‘‘WaterSense product or service’’ means a
491 
product or service that is rated for water efficiency 
under the WaterSense program. 
(3) 
WATERSENSE
PROGRAM.—The 
term 
‘‘WaterSense program’’ means the program estab-
lished by section 215 of this Act. 
(4) FEMP DESIGNATED PRODUCT.—The term 
‘‘FEMP designated product’’ means a product that 
is designated under the Federal Energy Manage-
ment Program of the Department of Energy as 
being among the highest 25 percent of equivalent 
products for efficiency. 
(5) PRODUCT AND SERVICE.—The terms ‘‘prod-
uct’’ and ‘‘service’’ do not include any water con-
suming product or service designed or procured for 
combat or combat-related missions. The terms also 
exclude products or services already covered by the 
Federal procurement regulations established under 
section 553 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259b). 
(b) PROCUREMENT OF WATER EFFICIENT PROD-
UCTS.— 
(1) REQUIREMENT.—To meet the requirements 
of an agency for a water consuming product or serv-
ice, the head of the agency shall, except as provided 
in paragraph (2), procure—
492 
(A) a WaterSense product or service; or 
(B) a FEMP designated product. 
A WaterSense plumbing product should preferably, 
when possible, be installed by a licensed and, when 
WaterSense 
certification 
guidelines 
exist, 
WaterSense-certified plumber or mechanical con-
tractor, and a WaterSense irrigation system should 
preferably, when possible, be installed, maintained, 
and audited by a WaterSense-certified irrigation 
professional to ensure optimal performance. 
(2) EXCEPTIONS.—The head of an agency is 
not required to procure a WaterSense product or 
service or FEMP designated product under para-
graph (1) if the head of the agency finds in writing 
that— 
(A) a WaterSense product or service or 
FEMP designated product is not cost-effective 
over the life of the product, taking energy and 
water cost savings into account; or 
(B) no WaterSense product or service or 
FEMP designated product is reasonably avail-
able that meets the functional requirements of 
the agency. 
(3) PROCUREMENT PLANNING.—The head of an 
agency shall incorporate into the specifications for
493 
all procurements involving water consuming products 
and systems, including guide specifications, project 
specifications, and construction, renovation, and 
services contracts that include provision of water 
consuming products and systems, and into the fac-
tors for the evaluation of offers received for the pro-
curement, criteria used for rating WaterSense prod-
ucts and services and FEMP designated products. 
The head of an agency shall consider, to the max-
imum extent practicable, additional measures for re-
ducing agency water consumption, including water 
reuse technologies, leak detection and repair, and 
use of waterless products that perform similar func-
tions to existing water-consuming products. 
(c) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of Energy, 
working in coordination with the Administrator, shall 
issue guidelines to carry out this section. 
SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT IN-
CENTIVE PROGRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a State government, local or county gov-
ernment, tribal government, wastewater or sewerage 
utility, municipal water authority, energy utility,
494 
water utility, or nonprofit organization that meets 
the requirements of subsection (b). 
(2) INCENTIVE PROGRAM.—The term ‘‘incentive 
program’’ means a program for administering finan-
cial incentives for consumer purchase and installa-
tion of residential water efficient products and serv-
ices as described in subsection (b)(1). 
(3) RESIDENTIAL WATER EFFICIENT PRODUCT 
OR SERVICE.—The term ‘‘residential water efficient 
product or service’’ means a product or service for 
a single-family or multifamily residence or its land-
scape that is rated for water efficiency and perform-
ance— 
(A) by the WaterSense program; or 
(B) where a WaterSense specification does 
not exist, by an incentive program. 
Categories of water efficient products and services 
may include faucets, irrigation technologies and 
services, point-of-use water treatment devices, reuse 
and recycling technologies, toilets, and showerheads. 
(4) 
WATERSENSE
PROGRAM.—The 
term 
‘‘WaterSense program’’ means the program estab-
lished by section 215 of this Act. 
(b) ELIGIBLE ENTITIES.—An entity shall be eligible 
to receive an allocation under subsection (c) if the entity—
495 
(1) establishes (or has established) an incentive 
program to provide rebates, vouchers, other financial 
incentives, or direct installs to consumers for the 
purchase of residential water efficient products or 
services; 
(2) submits an application for the allocation at 
such time, in such form, and containing such infor-
mation as the Administrator may require; and 
(3) provides assurances satisfactory to the Ad-
ministrator that the entity will use the allocation to 
supplement, but not supplant, funds made available 
to carry out the incentive program. 
(c) AMOUNT OF ALLOCATIONS.—For each fiscal year, 
the Administrator shall determine the amount to allocate 
to each eligible entity to carry out subsection (d) taking 
into consideration— 
(1) the population served by the eligible entity 
in the most recent calendar year for which data are 
available; 
(2) the targeted population of the eligible enti-
ty’s incentive program, such as general households, 
low-income households, or first-time homeowners, 
and the probable effectiveness of the incentive pro-
gram for that population;
496 
(3) for existing programs, the effectiveness of 
the incentive program in encouraging the adoption 
of water efficient products and services; and 
(4) any prior year’s allocation to the eligible en-
tity that remains unused. 
(d) USE OF ALLOCATED FUNDS.—Funds allocated to 
an entity under subsection (c) may be used to pay up to 
50 percent of the cost of establishing and carrying out 
an incentive program. 
(e) FIXTURE RECYCLING.—Entities are encouraged 
to promote or implement fixture recycling programs to 
manage the disposal of older fixtures replaced due to the 
incentive program under this section. 
(f) ISSUANCE OF INCENTIVES.—Financial incentives 
may be provided to consumers that meet the requirements 
of the incentive program. The entity may issue all finan-
cial incentives directly to consumers or, with approval of 
the Administrator, delegate some or all financial incentives 
administration to other organizations including, but not 
limited to, local governments, municipal water authorities, 
and water utilities. The amount of a financial incentives 
shall be determined by the entity, taking into consider-
ation— 
(1) the amount of the allocation to the entity 
under subsection (c);
497 
(2) the amount of any Federal, State, or other 
organization’s tax or financial incentive available for 
the purchase of the residential water efficient prod-
uct or service; 
(3) the amount necessary to change consumer 
behavior to purchase water efficient products and 
services; and 
(4) the consumer expenditures for onsite prepa-
ration, assembly, and original installation of the 
product. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section $50,000,000 for fiscal year 2010, 
$100,000,000 for fiscal year 2011, $150,000,000 for fis-
cal year 2012, $100,000,000 for fiscal year 2013, and 
$50,000,000 for fiscal year 2014. 
SEC. 218. CERTIFIED STOVES PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) AGENCY.—The term ‘‘Agency’’ means the 
Environmental Protection Agency. 
(2) WOOD
STOVE
OR
PELLET
STOVE.—The 
term ‘‘wood stove or pellet stove’’ means a wood 
stove, pellet stove, or fireplace insert that uses wood 
or pellets for fuel.
498 
(3) CERTIFIED
STOVE.—The term ‘‘certified 
stove’’ means a wood stove or pellet stove that meets 
the standards of performance for new residential 
wood heaters under subpart AAA of part 60 of sub-
chapter C of chapter I of title 40, Code of Federal 
Regulations (or successor regulations), as certified 
by the Administrator. Pellet stoves and fireplace in-
serts using pellets for fuel that are exempt from 
testing by the Administrator but meet the same 
standards of performance as wood stoves are consid-
ered certified for the purposes of this section. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a State, a local government, or a feder-
ally recognized Indian tribe; 
(B) Alaskan Native villages or regional or 
village corporations (as defined in, or estab-
lished under, the Alaskan Native Claims Settle-
ment Act (43 U.S.C. 1601 et seq.)); and 
(C) a nonprofit organization or institution 
that— 
(i) represents or provides pollution re-
duction or educational services relating to 
wood smoke minimization to persons, orga-
nizations, or communities; or
499 
(ii) has, as its principal purpose, the 
promotion of air quality or energy effi-
ciency. 
(b) ESTABLISHMENT.—The Administrator shall es-
tablish and carry out a program to assist in the replace-
ment of wood stoves or pellet stoves that do not meet the 
standards of performance referred to in subsection (a)(4) 
by— 
(1) requiring that each wood stove or pellet 
stove sold in the United States on and after the date 
of enactment of this Act meet the standards of per-
formance referred to in subsection (a)(4); 
(2) requiring that no wood stove or pellet stove 
replaced under this program is sold or returned to 
active service, but that it is instead destroyed and 
recycled to the maximum extent feasible; 
(3) providing funds to an eligible entity to re-
place a wood stove or pellet stove that does not meet 
the standards of performance in subsection (a)(4) 
with a certified stove, including funds to pay for— 
(A) installation of a replacement certified 
stove; and 
(B) necessary replacement of or repairs to 
ventilation, flues, chimneys, or other relevant
500 
items necessary for safe installation of a re-
placement certified stove; 
(4) in addition to any funds that may be appro-
priated for the program under this subsection, using 
existing Federal, State, and local programs and in-
centives, to the greatest extent practicable; 
(5) prioritizing the replacement of wood stoves 
or pellet stoves manufactured before July 1, 1990; 
and 
(6) carrying out such other activities as the Ad-
ministrator determines appropriate to facilitate the 
replacement of wood stoves or pellet stoves that do 
not meet the standards of performance referred to in 
subsection (a)(3). 
(c) REGULATIONS.—The Administrator may promul-
gate such regulations as are necessary to carry out the 
program established under subsection (b). 
(d) FUNDING.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
the program under this section $20,000,000 for the 
period of fiscal years 2010 through 2014. 
(2) DESIGNATED
USE.—Of amounts appro-
priated pursuant to this subsection—
501 
(A) 25 percent shall be designated for use 
to carry out the program under this section on 
lands held in trust for the benefit of a federally 
recognized Indian tribe; 
(B) 3 percent shall be designated for use 
to carry out the program under this section in 
Alaskan Native villages or regional or village 
corporations (as defined in, or established 
under, the Alaskan Native Claims Settlement 
Act (43 U.S.C. 1601 et seq.)); and 
(C) 72 percent shall be designated for use 
to carry out the program under this section na-
tionwide. 
(3) REGULATORY PROGRAMS.— 
(A) IN GENERAL.—No grant or loan pro-
vided under this section shall be used to fund 
the costs of emissions reductions that are man-
dated under Federal, State, or local law. 
(B) MANDATED.—For purposes of sub-
paragraph (A), voluntary or elective emission 
reduction measures shall not be considered 
‘‘mandated’’, regardless of whether the reduc-
tions are included in the implementation plan of 
a State.
502 
(e) EPA AUTHORITY TO ACCEPT WOOD STOVE OR 
PELLET STOVE REPLACEMENT SUPPLEMENTAL ENVI-
RONMENTAL PROJECTS.— 
(1) IN GENERAL.—The Administrator may ac-
cept (notwithstanding sections 3302 and 1301 of 
title 31, United States Code) wood stove or pellet 
stove 
replacement 
Supplemental 
Environmental 
Projects if such projects, as part of a settlement of 
any alleged violation of environmental law— 
(A) protect human health or the environ-
ment; 
(B) are related to the underlying alleged 
violation; 
(C) do not constitute activities that the de-
fendant would otherwise be legally required to 
perform; and 
(D) do not provide funds for the staff of 
the Agency or for contractors to carry out the 
Agency’s internal operations. 
(2) CERTIFICATION.—In any settlement agree-
ment regarding an alleged violation of environmental 
law in which a defendant agrees to perform a wood 
stove or pellet stove replacement Supplemental Envi-
ronmental Project, the Administrator shall require 
the defendant to include in the settlement docu-
503 
ments a certification under penalty of law that the 
defendant would have agreed to perform a com-
parably valued, alternative project other than a wood 
stove or pellet stove replacement Supplemental Envi-
ronmental Project if the Administrator were pre-
cluded by law from accepting a wood stove or pellet 
stove 
replacement 
Supplemental 
Environmental 
Project. A failure by the Administrator to include 
this language in such a settlement agreement shall 
not create a cause of action against the United 
States under the Clean Air Act or any other law or 
create a basis for overturning a settlement agree-
ment entered into by the United States. 
SEC. 219. ENERGY STAR STANDARDS. 
(a) ENERGY STAR.—Section 324A(c) of the Energy 
Policy and Conservation Act is amended— 
(1) in paragraph (6)(B), by striking ‘‘and’’ 
after the semicolon at the end; 
(2) in paragraph (7), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(8) not later than 18 months after the date of 
enactment of this paragraph, establish and imple-
ment a rating system for products identified as En-
ergy Star products pursuant to this section to pro-
504 
vide consumers with the most helpful information on 
the relative energy efficiency, including cost effec-
tiveness from the consumer’s perspective, and rel-
ative length of time for consumers to recover costs 
attributable to the energy efficient features, of those 
products, unless the Administrator and the Sec-
retary communicate to Congress that establishing 
such a system would diminish the value of the En-
ergy Star brand to consumers; 
‘‘(9)(A) review the Energy Star product criteria 
for the 10 product models in each product category 
with the greatest energy consumption at least once 
every 3 years; and 
‘‘(B) based on the review, update and publish 
the Energy Star product criteria for each such cat-
egory, as necessary; and 
‘‘(10) require periodic verification of compliance 
with the Energy Star product criteria by products 
identified as Energy Star products pursuant to this 
section, including— 
‘‘(A) purchase and testing of products 
from the market; or 
‘‘(B) other appropriate testing and compli-
ance approaches.’’.
505 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out the amend-
ments made by this section $5,000,000 for fiscal year 
2010 and for each fiscal year thereafter. 
Subtitle C—Transportation 
Efficiency 
SEC. 221. EMISSIONS STANDARDS. 
Title VIII of the Clean Air Act, as added by section 
331 of this Act, is amended by inserting after part A the 
following new part: 
‘‘PART B—MOBILE SOURCES 
‘‘SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR 
MOBILE SOURCES. 
‘‘(a) NEW MOTOR VEHICLES AND NEW MOTOR VE-
HICLE ENGINES.—(1) Pursuant to section 202(a)(1), by 
December 31, 2010, the Administrator shall promulgate 
standards applicable to emissions of greenhouse gases 
from new heavy-duty motor vehicles or new heavy-duty 
motor vehicle engines, excluding such motor vehicles cov-
ered by the Tier II standards (as established by the Ad-
ministrator as of the date of the enactment of this sec-
tion). The Administrator may revise these standards from 
time to time. 
‘‘(2) Regulations issued under section 202(a)(1) ap-
plicable to emissions of greenhouse gases from new heavy-
506 
duty motor vehicles or new heavy-duty motor vehicle en-
gines, excluding such motor vehicles covered by the Tier 
II standards (as established by the Administrator as of 
the date of the enactment of this section), shall contain 
standards that reflect the greatest degree of emissions re-
duction achievable through the application of technology 
which the Administrator determines will be available for 
the model year to which such standards apply, giving ap-
propriate consideration to cost, energy, and safety factors 
associated with the application of such technology. Any 
such regulations shall take effect after such period as the 
Administrator finds necessary to permit the development 
and application of the requisite technology, and, at a min-
imum, shall apply for a period no less than 3 model years 
beginning no earlier than the model year commencing 4 
years after such regulations are promulgated. 
‘‘(3) Regulations issued under section 202(a)(1) ap-
plicable to emissions of greenhouse gases from new heavy- 
duty motor vehicles or new heavy-duty motor vehicle en-
gines, excluding such motor vehicles covered by the Tier 
II standards (as established by the Administrator as of 
the date of the enactment of this section), shall supersede 
and satisfy any and all of the rulemaking and compliance 
requirements of section 32902(k) of title 49, United 
States Code.
507 
‘‘(4) Other than as specifically set forth in paragraph 
(3) of this subsection, nothing in this section shall affect 
or otherwise increase or diminish the authority of the Sec-
retary of Transportation to adopt regulations to improve 
the overall fuel efficiency of the commercial goods move-
ment system. 
‘‘(b) NONROAD VEHICLES AND ENGINES.—(1) Pur-
suant to section 213(a)(4) and (5), the Administrator 
shall identify those classes or categories of new nonroad 
vehicles or engines, or combinations of such classes or cat-
egories, that, in the judgment of the Administrator, both 
contribute significantly to the total emissions of green-
house gases from nonroad engines and vehicles, and pro-
vide the greatest potential for significant and cost-effective 
reductions in emissions of greenhouse gases. The Adminis-
trator shall promulgate standards applicable to emissions 
of greenhouse gases from these new nonroad engines or 
vehicles by December 31, 2012. The Administrator shall 
also promulgate standards applicable to emissions of 
greenhouse gases for such other classes and categories of 
new nonroad vehicles and engines as the Administrator de-
termines appropriate and in the timeframe the Adminis-
trator determines appropriate. The Administrator shall 
base such determination, among other factors, on the rel-
ative contribution of greenhouse gas emissions, and the
508 
costs for achieving reductions, from such classes or cat-
egories of new nonroad engines and vehicles. The Adminis-
trator may revise these standards from time to time. 
‘‘(2) Standards under section 213(a)(4) and (5) ap-
plicable to emissions of greenhouse gases from those class-
es or categories of new nonroad engines or vehicles identi-
fied in the first sentence of paragraph (1) of this sub-
section, shall achieve the greatest degree of emissions re-
duction achievable based on the application of technology 
which the Administrator determines will be available at 
the time such standards take effect, taking into consider-
ation cost, energy, and safety factors associated with the 
application of such technology. Any such regulations shall 
take effect at the earliest possible date after such period 
as the Administrator finds necessary to permit the devel-
opment and application of the requisite technology, giving 
appropriate consideration to the cost of compliance within 
such period, the applicable compliance dates for other 
standards, and other appropriate factors, including the pe-
riod of time appropriate for the transfer of applicable tech-
nology from other applications, including motor vehicles, 
and the period of time in which previously promulgated 
regulations have been in effect. 
‘‘(3) For purposes of this section and standards 
under section 213(a)(4) or (5) applicable to emissions of
509 
greenhouse gases, the term ‘nonroad engines and vehicles’ 
shall include non-internal combustion engines and the ve-
hicles these engines power (such as electric engines and 
electric vehicles), for those non-internal combustion en-
gines and vehicles which would be in the same category 
and have the same uses as nonroad engines and vehicles 
that are powered by internal combustion engines. 
‘‘(c) AVERAGING, BANKING, AND TRADING OF EMIS-
SIONS CREDITS.—In establishing standards applicable to 
emissions of greenhouse gases pursuant to this section and 
sections 202(a), 213(a)(4) and (5), and 231(a), the Ad-
ministrator may establish provisions for averaging, bank-
ing, and trading of greenhouse gas emissions credits with-
in or across classes or categories of motor vehicles and 
motor vehicle engines, nonroad vehicles and engines (in-
cluding marine vessels), and aircraft and aircraft engines, 
to the extent the Administrator determines appropriate 
and considering the factors appropriate in setting stand-
ards under those sections. Such provisions may include 
reasonable and appropriate provisions concerning genera-
tion, banking, trading, duration, and use of credits. 
‘‘(d) REPORTS.—The Administrator shall, from time 
to time, submit a report to Congress that projects the 
amount of greenhouse gas emissions from the transpor-
tation sector, including transportation fuels, for the years
510 
2030 and 2050, based on the standards adopted under 
this section. 
‘‘(e) GREENHOUSE
GASES.—Notwithstanding the 
provisions of section 711, hydrofluorocarbons shall be con-
sidered a greenhouse gas for purposes of this section.’’. 
SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS 
THROUGH TRANSPORTATION EFFICIENCY. 
(a) ENVIRONMENTAL PROTECTION AGENCY.—Title 
VIII of the Clean Air Act, as added by section 331 of this 
Act, is further amended by inserting after part C the fol-
lowing new part: 
‘‘PART D—TRANSPORTATION EMISSIONS 
‘‘SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS 
THROUGH TRANSPORTATION EFFICIENCY. 
‘‘(a) IN GENERAL.—The Administrator, in consulta-
tion with the Secretary of Transportation, shall promul-
gate, and update from time to time, regulations to estab-
lish national transportation-related greenhouse gas emis-
sions reduction goals, standardized models and methodolo-
gies for use in developing surface transportation-related 
greenhouse gas emissions reduction targets pursuant to 
sections 134 and 135 of title 23 of the United States Code 
and methods for collection of data on transportation-re-
lated greenhouse gas emissions. Such goals shall be com-
mensurate with the emissions reductions goals established
511 
under the American Clean Energy and Security Act of 
2009. In establishing such goals, models, and methodolo-
gies, the Administrator shall consult with States and met-
ropolitan planning organizations and may utilize existing 
models and methodologies. 
‘‘(b) TIMING.—The Administrator shall— 
‘‘(1) publish proposed regulations under sub-
section (a) not later than 12 months after the date 
of enactment of this section; and 
‘‘(2) promulgate final regulations under sub-
section (a) not later than 18 months after the date 
of enactment of this section. 
‘‘(c) ASSESSMENT.—At least every 6 years after pro-
mulgating final regulations under subsection (a), the Ad-
ministrator, jointly with the Secretary of Transportation, 
shall assess current and projected progress in reducing na-
tional transportation-related greenhouse gas emissions. 
The assessment shall examine the contributions to emis-
sions reductions attributable to improvements in vehicle 
efficiency, greenhouse gas performance of transportation 
fuels, increased efficiency in utilizing transportation sys-
tems and the effects of local and State planning.’’. 
(b) METROPOLITAN PLANNING ORGANIZATIONS.— 
Section 134 of title 23 of the United States Code is 
amended as follows:
512 
(1) In subsection (a)(1)— 
(A) by striking ‘‘minimizing’’ and inserting 
‘‘reducing’’; and 
(B) by inserting ‘‘, reliance on oil, impacts 
on 
the 
environment, 
transportation-related 
greenhouse gas emissions’’ after ‘‘consump-
tion’’. 
(2) In subsection (h)(1)(E)— 
(A) by inserting ‘‘sustainability and liv-
ability, reduce surface transportation-related 
greenhouse gas emissions and reliance on oil, 
adapt to the effects of climate change,’’ after 
‘‘energy conservation’’; 
(B) by inserting ‘‘and public health’’ after 
‘‘quality of life’’; and 
(C) by inserting ‘‘, including housing and 
land use patterns’’ after ‘‘development pat-
terns’’. 
(3) In subsection (i)(4)(A) by inserting ‘‘air 
quality, public health, housing, transportation,’’ 
after ‘‘conservation,’’. 
(4) In subsection (k) by inserting at the end the 
following new paragraph: 
‘‘(6) EMISSIONS REDUCTION PROCESS.—
513 
‘‘(A) IN GENERAL.—Within a metropolitan 
planning area serving a transportation manage-
ment area, the transportation planning process 
under this section shall address transportation- 
related greenhouse gas emissions by including 
emission reduction targets and strategies. 
‘‘(B) ESTABLISHMENT OF EMISSIONS RE-
DUCTION TARGETS AND STRATEGIES.— 
‘‘(i) IN GENERAL.—Not later than 1 
year after the promulgation of the final 
regulations required under section 841 of 
the Clean Air Act, each metropolitan plan-
ning organization shall develop surface 
transportation-related 
greenhouse 
gas 
emission reduction targets, as well as 
strategies to meet such targets, as part of 
the transportation planning process under 
this section. If more than one metropolitan 
planning organization has been designated 
within a metropolitan planning area serv-
ing a transportation management area, 
each such metropolitan planning organiza-
tion shall work cooperatively with other 
such organization to develop the surface 
transportation-related 
greenhouse 
gas
514 
emission reduction targets required under 
this subparagraph. 
‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each metropolitan planning organization 
that develops targets and strategies re-
quired under clause (i) shall demonstrate 
progress in stabilizing and reducing trans-
portation-related greenhouse gas emissions 
in each metropolitan planning area serving 
a surface transportation management area. 
The targets and strategies shall, at a min-
imum— 
‘‘(I) be based on the models and 
methodologies established in the final 
regulations required under section 
841 of the Clean Air Act; 
‘‘(II) address sources of surface 
transportation-related greenhouse gas 
emissions and contribute to achieve-
ment of the national transportation- 
related greenhouse gas emissions re-
duction goals; 
‘‘(III) include efforts to increase 
public transportation ridership; and
515 
‘‘(IV) include efforts to increase 
walking, bicycling, and other forms of 
nonmotorized transportation. 
‘‘(C) PUBLIC NOTICE.—Each metropolitan 
planning organization shall make its emission 
reduction targets and strategies, and an anal-
ysis of the anticipated effects thereof, available 
to the public through its Web site. 
‘‘(D) ENFORCEMENT.—If the Secretary 
finds that a metropolitan planning organization 
has failed to develop, submit or publish its 
emission reduction targets and strategies, the 
Secretary shall not certify that the require-
ments of this section are met with respect to 
the metropolitan planning process of such orga-
nization.’’. 
(c) STATES.—Section 135 of title 23 of the United 
States Code is amended as follows: 
(1) In subsection (d)(1)(E)— 
(A) by inserting ‘‘sustainability and liv-
ability, reduce surface transportation-related 
greenhouse gas emissions and reliance on oil, 
adapt to the effects of climate change,’’ after 
‘‘energy conservation’’;
516 
(B) by inserting ‘‘and public health’’ after 
‘‘quality of life’’; and 
(C) by inserting ‘‘, including housing and 
land use patterns’’ after ‘‘development pat-
terns’’. 
(2) In subsection (f)(2)(D)(i) by inserting ‘‘air 
quality, public health, housing, transportation,’’ 
after ‘‘conservation,’’. 
(3) In subsection (f) by inserting at the end the 
following new paragraph: 
‘‘(9) EMISSIONS REDUCTION PROCESS.— 
‘‘(A) IN GENERAL.—Within a State, the 
transportation planning process under this sec-
tion shall address transportation-related green-
house gas emissions by including emission re-
duction targets and strategies. 
‘‘(B) ESTABLISHMENT OF EMISSIONS RE-
DUCTION TARGETS AND STRATEGIES.— 
‘‘(i) IN GENERAL.—Not later than 1 
year after the promulgation of the final 
regulations required under section 841 of 
the Clean Air Act, each State shall develop 
surface transportation-related greenhouse 
gas emission reduction targets, as well as 
strategies to meet such targets, as part of
517 
the transportation planning process under 
this section. 
‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each State that develops targets and strat-
egies required under clause (i) shall dem-
onstrate progress in stabilizing and reduc-
ing transportation-related greenhouse gas 
emissions in such State. The targets and 
strategies shall, at a minimum— 
‘‘(I) be based on the models and 
methodologies established in the final 
regulations required under section 
841 of the Clean Air Act; 
‘‘(II) address sources of surface 
transportation-related greenhouse gas 
emissions and contribute to achieve-
ment of the national transportation- 
related greenhouse gas emissions re-
duction goals; 
‘‘(III) include efforts to increase 
public transportation ridership; and 
‘‘(IV) include efforts to increase 
walking, bicycling, and other forms of 
nonmotorized transportation.
518 
‘‘(D) PUBLIC NOTICE.—Each State shall 
make its emission reduction targets and strate-
gies, and an analysis of the anticipated effects 
thereof, available to the public through its Web 
site. 
‘‘(E) ENFORCEMENT.—If the Secretary 
finds that a State has failed to develop, submit 
or publish its emission reduction targets and 
strategies, the Secretary shall not certify that 
the requirements of this section are met with 
respect to the statewide planning process of 
such State.’’. 
(d) DEPARTMENT OF TRANSPORTATION.—The Sec-
retary of Transportation shall establish appropriate re-
quirements, including performance measures, to ensure 
that transportation plans developed under sections 134 
and 135 of title 23 of the United States Code sufficiently 
meet the requirements of this section, including achieving 
progress towards national transportation-related green-
house gas emissions reduction goals. 
SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PRO-
GRAM. 
Part B of title VIII of the Clean Air Act, as added 
by section 221 of this Act is amended by adding after sec-
tion 821 the following section:
519 
‘‘SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PRO-
GRAM. 
‘‘(a) IN GENERAL.—There is established within the 
Environmental Protection Agency a SmartWay Transport 
Program to quantify, demonstrate, and promote the bene-
fits of technologies, products, fuels, and operational strate-
gies that reduce petroleum consumption, air pollution, and 
greenhouse gas emissions from the mobile source sector. 
‘‘(b) GENERAL DUTIES.—Under the program estab-
lished under this section, the Administrator shall carry out 
each of the following: 
‘‘(1) Development of measurement protocols to 
evaluate the energy consumption and greenhouse gas 
impacts from technologies and strategies in the mo-
bile source sector, including those for passenger 
transport and goods movement. 
‘‘(2) Development of qualifying thresholds for 
certifying, verifying, or designating energy-efficient, 
low-greenhouse gas SmartWay technologies and 
strategies for each mode of passenger transportation 
and goods movement. 
‘‘(3) Development of partnership and recogni-
tion programs to promote best practices and drive 
demand for energy-efficient, low-greenhouse gas 
transportation performance.
520 
‘‘(4) Promotion of the availability of, and en-
couragement of the adoption of, SmartWay certified 
or verified technologies and strategies, and publica-
tion of the availability of financial incentives, such 
as assistance from loan programs and other Federal 
and State incentives. 
‘‘(c) SMARTWAY TRANSPORT FREIGHT PARTNER-
SHIP.—The Administrator shall establish a SmartWay 
Transport Freight Partnership program with shippers and 
carriers of goods to promote energy-efficient, low-green-
house gas transportation. In carrying out such partner-
ship, the Administrator shall undertake each of the fol-
lowing: 
‘‘(1) Certification of the energy and greenhouse 
gas performance of participating freight carriers, in-
cluding those operating rail, trucking, marine, and 
other goods movement operations. 
‘‘(2) Publication of a comprehensive energy and 
greenhouse gas performance index of freight modes 
(including rail, trucking, marine, and other modes of 
transporting goods) and individual freight companies 
so that shippers can choose to deliver their goods 
more efficiently. 
‘‘(3) Development of tools for—
521 
‘‘(A) carriers to calculate their energy and 
greenhouse gas performance; and 
‘‘(B) shippers to calculate the energy and 
greenhouse gas impacts of moving their prod-
ucts and to evaluate the relative impacts from 
transporting their goods by different modes and 
corporate carriers. 
‘‘(4) Provision of recognition opportunities for 
participating shipper and carrier companies dem-
onstrating advanced practices and achieving superior 
levels of greenhouse gas performance. 
‘‘(d) IMPROVING FREIGHT GREENHOUSE GAS PER-
FORMANCE DATABASES.—The Administrator shall, in co-
ordination with other appropriate agencies, define and col-
lect data on the physical and operational characteristics 
of the Nation’s truck population, with special emphasis on 
data related to energy efficiency and greenhouse gas per-
formance to inform the performance index published 
under subsection (c)(2) of this section, and other means 
of goods transport as necessary, at least every 5 years. 
‘‘(e) ESTABLISHMENT OF FINANCING PROGRAM.— 
The Administrator shall establish a SmartWay Financing 
Program to competitively award funding to eligible entities 
identified by the Administrator in accordance with the 
program requirements in subsection (g).
522 
‘‘(f) PURPOSE.—Under the SmartWay Financing 
Program, eligible entities shall— 
‘‘(1) use funds awarded by the Administrator to 
provide flexible loan and lease terms that increase 
approval rates or lower the costs of loans and leases 
in accordance with guidance developed by the Ad-
ministrator; and 
‘‘(2) make such loans and leases available to 
public and private entities for the purpose of adopt-
ing low-greenhouse gas technologies or strategies for 
the mobile source sector that are designated by the 
Administrator. 
‘‘(g) PROGRAM REQUIREMENTS.—The Administrator 
shall determine program design elements and require-
ments, including— 
‘‘(1) the type of financial mechanism with 
which to award funding, in the form of grants or 
contracts; 
‘‘(2) the designation of eligible entities to re-
ceive funding, including State, tribal, and local gov-
ernments, regional organizations comprised of gov-
ernmental units, nonprofit organizations, or for-prof-
it companies; 
‘‘(3) criteria for evaluating applications from el-
igible entities, including anticipated—
523 
‘‘(A) cost-effectiveness of loan or lease pro-
gram on a metric-ton-of-greenhouse gas-saved- 
per-dollar basis; 
‘‘(B) ability to promote the loan or lease 
program and associated technologies and strate-
gies to the target audience; and 
‘‘(4) reporting requirements for entities that re-
ceive awards, including— 
‘‘(A) actual cost-effectiveness and green-
house gas savings from the loan or lease pro-
gram based on a methodology designated by the 
Administrator; 
‘‘(B) the total number of applications and 
number of approved applications; and 
‘‘(C) terms granted to loan and lease re-
cipients compared to prevailing market prac-
tices. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—Such 
sums as necessary are authorized to be appropriated to 
the Administrator to carry out this section.’’. 
SEC. 224. STATE VEHICLE FLEETS. 
Section 507(o) of the Energy Policy Act of 1992 (42 
U.S.C. 13257) is amended by adding the following new 
paragraph at the end thereof:
524 
‘‘(3) The Secretary shall revise the rules under this 
subsection with respect to the types of alternative fueled 
vehicles required for compliance with this subsection to en-
sure those rules are consistent with any guidance issued 
pursuant to section 303 of this Act.’’. 
Subtitle D—Industrial Energy 
Efficiency Programs 
SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STAND-
ARDS. 
The Secretary of Energy shall continue to support 
the development of the American National Standards In-
stitute (ANSI) voluntary industrial plant energy efficiency 
certification program, pending International Standards 
Organization (ISO) consensus standard 50001, and other 
related ANSI/ISO standards. In addition, the Department 
shall undertake complementary activities through the De-
partment of Energy’s Industry Technologies Program that 
support the voluntary implementation of such standards 
by manufacturing firms. There are authorized to be appro-
priated to the Secretary such sums as are necessary to 
carry out these activities. The Secretary shall report to 
Congress on the status of standards development and 
plans for further standards development pursuant to this 
section by not later than 18 months after the date of en-
525 
actment of this Act, and shall prepare a second such re-
port 18 months thereafter. 
SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOV-
ERY AWARD PROGRAM. 
(a) ELECTRIC AND THERMAL WASTE ENERGY RE-
COVERY AWARDS.—The Secretary of Energy shall estab-
lish a program to make monetary awards to the owners 
and operators of new and existing electric energy genera-
tion facilities or thermal energy production facilities using 
fossil or nuclear fuel, to encourage them to use innovative 
means of recovering any thermal energy that is a poten-
tially useful byproduct of electric power generation or 
other processes to— 
(1) generate additional electric energy; or 
(2) make sales of thermal energy not used for 
electric generation, in the form of steam, hot water, 
chilled water, or desiccant regeneration, or for other 
commercially valid purposes. 
(b) AMOUNT OF AWARDS.— 
(1) ELIGIBILITY.—Awards shall be made under 
subsection (a) only for the use of innovative means 
that achieve net energy efficiency at the facility con-
cerned significantly greater than the current stand-
ard technology in use at similar facilities.
526 
(2) AMOUNT.—The amount of an award made 
under subsection (a) shall equal an amount up to 
the value of 25 percent of the energy projected to be 
recovered or generated during the first 5 years of 
operation of the facility using the innovative energy 
recovery method, or such lesser amount that the 
Secretary determines to be the minimum amount 
that can cost-effectively stimulate such innovation. 
(3) LIMITATION.—No person may receive an 
award under this section if a grant under the waste 
energy incentive grant program under section 373 of 
the Energy Policy and Conservation Act (42 U.S.C. 
6343) is made for the same energy savings resulting 
from the same innovative method. 
(c) REGULATORY STATUS.—The Secretary of Energy 
shall— 
(1) assist State regulatory commissions to iden-
tify and make changes in State regulatory programs 
for electric utilities to provide appropriate regulatory 
status for thermal energy byproduct businesses of 
regulated electric utilities to encourage those utilities 
to enter businesses making the sales referred to in 
subsection (a)(2); and
527 
(2) encourage self-regulated utilities to enter 
businesses making the sales referred to in subsection 
(a)(2). 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy such sums as are necessary for the purposes of this 
section. 
SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOV-
ERY FINANCIAL INCENTIVES. 
Section 373(e) of the Energy Policy and Conservation 
Act (42 U.S.C. 6343(e)) is amended— 
(1) by striking ‘‘that qualifies for’’ and insert-
ing ‘‘who elects to claim’’; and 
(2) by inserting ‘‘from that project’’ after ‘‘for 
waste heat recovery’’. 
SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL 
AWARENESS PROGRAM. 
(a) FINDINGS.—Congress finds that— 
(1) electric motor systems account for about 
half of the electricity used in the United States; 
(2) electric motor energy use is determined by 
both the efficiency of the motor and the system in 
which the motor operates;
528 
(3) Federal Government research on motor end 
use and efficiency opportunities is more than a dec-
ade old; and 
(4) the Census Bureau has discontinued collec-
tion of data on motor and generator importation, 
manufacture, shipment, and sales. 
(b) DEFINITIONS.—In this section: 
(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(2) INTERESTED PARTIES.—The term ‘‘inter-
ested parties’’ includes— 
(A) trade associations; 
(B) motor manufacturers; 
(C) motor end users; 
(D) electric utilities; and 
(E) individuals and entities that conduct 
energy efficiency programs. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy, in consultation with inter-
ested parties. 
(c) ASSESSMENT.—The Secretary shall conduct an 
assessment of electric motors and the electric motor mar-
ket in the United States that shall—
529 
(1) include important subsectors of the indus-
trial and commercial electric motor market (as de-
termined by the Secretary), including— 
(A) the stock of motors and motor-driven 
equipment; 
(B) efficiency categories of the motor pop-
ulation; and 
(C) motor systems that use drives, servos, 
and other control technologies; 
(2) characterize and estimate the opportunities 
for improvement in the energy efficiency of motor 
systems by market segment, including opportunities 
for— 
(A) expanded use of drives, servos, and 
other control technologies; 
(B) expanded use of process control, 
pumps, compressors, fans or blowers, and mate-
rial handling components; and 
(C) substitution of existing motor designs 
with existing and future advanced motor de-
signs, including electronically commutated per-
manent magnet, interior permanent magnet, 
and switched reluctance motors; and 
(3) develop an updated profile of motor system 
purchase and maintenance practices, including sur-
530 
veying the number of companies that have motor 
purchase and repair specifications, by company size, 
number of employees, and sales. 
(d) RECOMMENDATIONS; UPDATE.—Based on the as-
sessment conducted under subsection (c), the Secretary 
shall— 
(1) develop— 
(A) recommendations to update the de-
tailed motor profile on a periodic basis; 
(B) methods to estimate the energy sav-
ings and market penetration that is attributable 
to the Save Energy Now Program of the De-
partment; and 
(C) recommendations for the Director of 
the Census Bureau on market surveys that 
should be undertaken in support of the motor 
system activities of the Department; and 
(2) prepare an update to the Motor Master+ 
program of the Department. 
(e) PROGRAM.—Based on the assessment, rec-
ommendations, and update required under subsections (c) 
and (d), the Secretary shall establish a proactive, national 
program targeted at motor end-users and delivered in co-
operation with interested parties to increase awareness 
of—
531 
(1) the energy and cost-saving opportunities in 
commercial and industrial facilities using higher effi-
ciency electric motors; 
(2) improvements in motor system procurement 
and management procedures in the selection of high-
er efficiency electric motors and motor-system com-
ponents, including drives, controls, and driven equip-
ment; and 
(3) criteria for making decisions for new, re-
placement, or repair motor and motor system com-
ponents. 
SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM. 
(a) IN GENERAL.—Part C of title III of the Energy 
Policy and Conservation Act (42 U.S.C. 6311 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM. 
‘‘(a) ESTABLISHMENT.—Not later than January 1, 
2010, in accordance with subsection (b), the Secretary 
shall establish a program to provide rebates for expendi-
tures made by entities— 
‘‘(1) for the purchase and installation of a new 
electric motor that has a nominal full load efficiency 
that is not less than the nominal full load efficiency 
as defined in—
532 
‘‘(A) table 12–12 of NEMA Standards 
Publication MG 1–2006 for random wound mo-
tors rated 600 volts or lower; or 
‘‘(B) table 12–13 of NEMA Standards 
Publication MG 1–2006 for form wound motors 
rated 5000 volts or lower; and 
‘‘(2) to replace an installed motor of the entity 
the specifications of which are established by the 
Secretary by a date that is not later than 90 days 
after the date of enactment of this section. 
‘‘(b) REQUIREMENTS.— 
‘‘(1) APPLICATION.—To be eligible to receive a 
rebate under this section, an entity shall submit to 
the Secretary an application in such form, at such 
time, and containing such information as the Sec-
retary may require, including— 
‘‘(A) demonstrated evidence that the entity 
purchased an electric motor described in sub-
section (a)(1) to replace an installed motor de-
scribed in subsection (a)(2); 
‘‘(B) demonstrated evidence that the enti-
ty— 
‘‘(i) removed the installed motor of 
the entity from service; and
533 
‘‘(ii) properly disposed the installed 
motor of the entity; and 
‘‘(C) the physical nameplate of the in-
stalled motor of the entity. 
‘‘(2) AUTHORIZED AMOUNT OF REBATE.—The 
Secretary may provide to an entity that meets each 
requirement under paragraph (1) a rebate the 
amount of which shall be equal to the product ob-
tained by multiplying— 
‘‘(A) the nameplate horsepower of the elec-
tric motor purchased by the entity in accord-
ance with subsection (a)(1); and 
‘‘(B) $25.00. 
‘‘(3) PAYMENTS TO DISTRIBUTORS OF QUALI-
FYING ELECTRIC MOTORS.—To assist in the pay-
ment for expenses relating to processing and motor 
core disposal costs, the Secretary shall provide to the 
distributor of an electric motor described in sub-
section (a)(1), the purchaser of which received a re-
bate under this section, an amount equal to the 
product obtained by multiplying— 
‘‘(A) the nameplate horsepower of the elec-
tric motor; and 
‘‘(B) $5.00.
534 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section, 
to remain available until expended— 
‘‘(1) $80,000,000 for fiscal year 2011; 
‘‘(2) $75,000,000 for fiscal year 2012; 
‘‘(3) $70,000,000 for fiscal year 2013; 
‘‘(4) $65,000,000 for fiscal year 2014; and 
‘‘(5) $60,000,000 for fiscal year 2015.’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
the Energy Policy and Conservation Act (42 U.S.C. prec. 
6201) is amended by adding at the end of the items relat-
ing to part C of title III the following: 
‘‘Sec. 347. Motor efficiency rebate program.’’. 
SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING 
LOAN FUND PROGRAM. 
The National Institute of Standards and Technology 
Act (15 U.S.C. 271 et seq.) is amended by inserting after 
section 26 the following: 
‘‘SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING 
LOAN FUND PROGRAM. 
‘‘(a) PURPOSES.—The purposes of this section are as 
follows: 
‘‘(1) To develop the long-term manufacturing 
capacity of the United States. 
‘‘(2) To create jobs through the retooling and 
expansion of manufacturing facilities to produce
535 
clean energy technology products and energy effi-
cient products. 
‘‘(3) To improve the long-term competitiveness 
of domestic manufacturing by increasing the energy 
efficiency of manufacturing facilities. 
‘‘(4) To assist small and medium-sized manu-
facturers diversify operations to respond to emerging 
clean energy technology product markets. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) CLEAN ENERGY TECHNOLOGY PRODUCT.— 
The term ‘clean energy technology product’ means 
technology products relating to the following: 
‘‘(A) Wind turbines. 
‘‘(B) Solar energy. 
‘‘(C) Fuel cells. 
‘‘(D) Advanced batteries, battery systems, 
or storage devices. 
‘‘(E) Biomass equipment. 
‘‘(F) Geothermal equipment. 
‘‘(G) Advanced biofuels. 
‘‘(H) Ocean energy equipment. 
‘‘(I) Carbon capture and storage. 
‘‘(J) Such other products as the Secretary 
determines—
536 
‘‘(i) relate to the production, use, 
transmission, storage, control, or conserva-
tion of energy; 
‘‘(ii) reduce greenhouse gas concentra-
tions; 
‘‘(iii) achieve the earliest and max-
imum emission reductions within a reason-
able period per dollar invested; 
‘‘(iv) result in the fewest non-green-
house gas environmental impacts; and 
‘‘(v) either— 
‘‘(I) reduce the need for addi-
tional energy supplies by— 
‘‘(aa) using existing energy 
supplies with greater efficiency; 
or 
‘‘(bb) by transmitting, dis-
tributing, or transporting energy 
with 
greater 
effectiveness 
through the infrastructure of the 
United States; or 
‘‘(II) diversity the sources of en-
ergy supply of the United States— 
‘‘(aa) to strengthen energy 
security; and
537 
‘‘(bb) to increase supplies 
with a favorable balance of envi-
ronmental effects if the entire 
technology system is considered. 
‘‘(2) ENERGY EFFICIENT PRODUCT.—The term 
‘energy efficient product’ means a product that, as 
determined by the Secretary in consultation with the 
Secretary of Energy— 
‘‘(A) consumes significantly less energy 
than the average amount that all similar prod-
ucts consumed on the day before the date of the 
enactment of this Act; or 
‘‘(B) is a component, system, or group of 
subsystems that is designed, developed, and 
validated to optimize the energy efficiency of a 
product. 
‘‘(3) HOLLINGS
MANUFACTURING
EXTENSION 
CENTER.—The term ‘Hollings Manufacturing Exten-
sion Center’ means a center established under sec-
tion 25. 
‘‘(4) HOLLINGS MANUFACTURING PARTNERSHIP 
PROGRAM.—The term ‘Hollings Manufacturing Part-
nership Program’ means the program established 
under sections 25 and 26.
538 
‘‘(5) PROGRAM.—The term ‘Program’ means 
the grant program established pursuant to sub-
section (c)(1). 
‘‘(6) REVOLVING LOAN FUND.—The term ‘re-
volving loan fund’ means a revolving loan fund de-
scribed in subsection (d). 
‘‘(7) SECRETARY.—Except as otherwise pro-
vided, the term ‘Secretary’ means the Secretary of 
Commerce. 
‘‘(8) SMALL
OR
MEDIUM-SIZED
MANUFAC-
TURER.—The term ‘small or medium-sized manufac-
turer’ means a manufacturer that employs fewer 
than 500 full-time equivalent employees at a manu-
facturing facility that is not owned or controlled by 
an automobile manufacturer. 
‘‘(c) GRANT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—Not later than 120 
days after the date of the enactment of this section, 
the Secretary shall establish a program under which 
the Secretary shall award grants to States to estab-
lish revolving loan funds to provide loans to small 
and medium-sized manufacturers to finance the cost 
of— 
‘‘(A) reequipping, expanding, or estab-
lishing (including applicable engineering costs)
539 
a manufacturing facility in the United States to 
produce— 
‘‘(i) clean energy technology products; 
‘‘(ii) energy efficient products; or 
‘‘(iii) integral component parts of 
clean energy technology products or energy 
efficient products; or 
‘‘(B) reducing the energy intensity or 
greenhouse gas production of a manufacturing 
facility in the United States, including using 
energy intensive feedstocks. 
‘‘(2) MAXIMUM AMOUNT.—The Secretary may 
not award a grant under the Program in an amount 
that exceeds $500,000,000 in any fiscal year. 
‘‘(d) CRITERIA FOR AWARDING GRANTS.— 
‘‘(1) MATCHING
FUNDS.—The Secretary may 
make a grant to a State under the Program only if 
the State agrees to ensure that for each loan pro-
vided by the State under the Program, not less than 
20 percent of the amount of each loan will come 
from a non-Federal source. 
‘‘(2) ADMINISTRATIVE COSTS.—A State receiv-
ing a grant under the Program may only use such 
amount of the grant for the costs of administering
540 
the revolving loan fund as the Secretary shall pro-
vide in regulations. 
‘‘(3) APPLICATION.—Each State seeking a 
grant under the Program shall submit to the Sec-
retary an application therefor in such form and in 
such manner as the Secretary considers appropriate. 
‘‘(4) EVALUATION.—The Secretary shall evalu-
ate and prioritize an application submitted by a 
State for a grant under the Program on the basis 
of— 
‘‘(A) the description of the revolving loan 
fund to be established with the grant and how 
such revolving loan fund will achieve the pur-
poses described in subsection (a); 
‘‘(B) whether the State will be able to pro-
vide loans from the revolving loan fund to small 
or medium-sized manufacturers before the date 
that is 120 days after the date on which the 
State receives the grant; 
‘‘(C) a description of how the State will 
administer the revolving loan fund in coordina-
tion with other State and Federal programs, in-
cluding programs administered by the Assistant 
Secretary for Economic Development;
541 
‘‘(D) a description of the actual or poten-
tial clean energy manufacturing supply chains, 
including significant component parts, in the re-
gion served by the revolving loan fund; 
‘‘(E) how the State will target the provi-
sion of loans under the Program to manufactur-
ers located in regions characterized by high un-
employment and sudden and severe economic 
dislocation, in particular where mass layoffs 
have resulted in a precipitous increase in unem-
ployment; 
‘‘(F) the availability of a skilled manufac-
turing workforce in the region served by the re-
volving loan fund and the capacity of the re-
gion’s workforce and education systems to pro-
vide pathways for unemployed or low-income 
workers into skilled manufacturing employment; 
‘‘(G) a description of how the State will 
target loans to small or medium-sized manufac-
turers who are— 
‘‘(i) manufacturers of automobile com-
ponents; and 
‘‘(ii) either—
542 
‘‘(I) increasing the energy effi-
ciency of their manufacturing facili-
ties; or 
‘‘(II) retooling to manufacture 
clean energy products or energy effi-
cient products, including manufac-
turing components to improve the 
compliance of an automobile with fuel 
economy standards prescribed under 
section 32902 of title 49, United 
States Code; 
‘‘(H) a description of how the State will 
use the loan fund to achieve the earliest and 
maximum greenhouse gas emission reductions 
within a reasonable period of time per dollar in-
vested and with the fewest non-greenhouse gas 
environmental impacts; and 
‘‘(I) such other factors as the Secretary 
considers appropriate to ensure that grants 
awarded under the Program effectively and effi-
ciently achieve the purposes described in sub-
section (a). 
‘‘(e) REVOLVING LOAN FUNDS.— 
‘‘(1) IN GENERAL.—A State receiving a grant 
under the Program shall establish, maintain, and
543 
administer a revolving loan fund in accordance with 
this subsection. 
‘‘(2) DEPOSITS.—A revolving loan fund shall 
consist of the following: 
‘‘(A) Amounts from grants awarded under 
this section. 
‘‘(B) All amounts held or received by the 
State incident to the provision of loans de-
scribed in subsection (f), including all collec-
tions of principal and interest. 
‘‘(3) EXPENDITURES.—Amounts in the revolv-
ing loan fund shall be available for the provision and 
administration of loans in accordance with sub-
section (f). 
‘‘(4) LIMITATION.—No funds provided pursuant 
to this section may be leveraged through use of tax- 
exempt bonding authority by a State or a political 
subdivision of a State. 
‘‘(f) LOANS.— 
‘‘(1) IN GENERAL.—A State receiving a grant 
under this section shall use the amount in the re-
volving loan fund to provide loans to small and me-
dium-sized manufacturers as described in subsection 
(c)(1).
544 
‘‘(2) LOAN TERMS AND CONDITIONS.—The fol-
lowing shall apply with respect to loans provided 
under paragraph (1): 
‘‘(A) TERMS.—Loans shall have a term de-
termined by the State receiving the grant as 
follows: 
‘‘(i) For fixed assets, the term of the 
loan shall not exceed the useful life of the 
asset and shall be less than 15 years. 
‘‘(ii) For working capital, the term of 
the loan shall not exceed 36 months. 
‘‘(B) INTEREST RATES.—Loans shall bear 
an interest rate determined by the State receiv-
ing the grant as follows: 
‘‘(i) The interest rate shall enable the 
loan recipient to accomplish the activities 
described in subparagraphs (A) and (B) of 
subsection (c)(1). 
‘‘(ii) The interest rate may be set 
below-market interest rates. 
‘‘(iii) The interest rate may not be 
less than zero percent. 
‘‘(iv) The interest rate may not exceed 
the current prime rate plus 500 basis 
points.
545 
‘‘(C) DESCRIPTION AND BUDGET FOR USE 
OF
LOAN
FUNDS.—Each recipient of a loan 
from a State under the Program shall develop 
and submit to the State and the Secretary a de-
scription and budget for the use of loan 
amounts, including a description of the fol-
lowing: 
‘‘(i) Any new business expected to be 
developed with the loan. 
‘‘(ii) Any improvements to manufac-
turing operations to be developed with the 
loan. 
‘‘(iii) Any technology expected to be 
commercialized with the loan. 
‘‘(D) PRIORITY
IN
REVIEW
AND
PREF-
ERENCE IN SELECTION FOR CERTAIN LOAN AP-
PLICANTS.— 
‘‘(i) REVIEW.—In reviewing applica-
tions submitted by small or medium-sized 
manufacturers for a loan, a recipient of a 
grant under the Program shall give pri-
ority to small or medium-sized manufac-
turers described in clause (iii). 
‘‘(ii) SELECTION.—In selecting small 
or medium-sized manufacturers to receive
546 
a loan, a recipient of a grant under the 
Program shall give preference to small or 
medium-sized manufacturers described in 
clause (iii). 
‘‘(iii) 
PRIORITY
AND
PREFERRED 
SMALL
OR
MEDIUM-SIZED
MANUFACTUR-
ERS.—A small or medium-sized manufac-
turer described in this clause is a manufac-
turer that— 
‘‘(I) is certified by a Hollings 
Manufacturing Extension Center or a 
manufacturing-related 
local 
inter-
mediary designated by the Secretary 
for purposes of providing such certifi-
cation; or 
‘‘(II) provides individuals em-
ployed at the manufacturing facilities 
of the manufacturer— 
‘‘(aa) pay in amounts that 
are, on average, equal to or more 
than the average wage of an indi-
vidual working in a manufac-
turing facility in the State; and 
‘‘(bb) health benefits.
547 
‘‘(iv) CERTIFICATION
BY
HOLLINGS 
MANUFACTURING EXTENSION CENTER.—A 
Hollings Manufacturing Extension Center 
or other entity designated by the Secretary 
for purposes of providing certification 
under clause (iii)(I) shall only certify appli-
cations for a loan after carrying out a 
qualitative and quantitative review of the 
applicant’s business strategy, manufac-
turing operations, and technological ability 
to contribute to the purposes described in 
subsection (a). 
‘‘(E) REPAYMENT UPON RELOCATION OUT-
SIDE UNITED STATES.— 
‘‘(i) IN
GENERAL.—If a person re-
ceives a loan under paragraph (1) to fi-
nance the cost of reequipping, expanding, 
or establishing a manufacturing facility as 
described in subsection (c)(1)(A) or to re-
duce the energy intensity of a manufac-
turing facility and such person relocates 
the production activities of such manufac-
turing facility outside the United States 
during the term of the loan, the recipient 
shall repay such loan in full with interest
548 
as described in clause (ii) and for a dura-
tion described in clause (iii). 
‘‘(ii) PAYMENT
OF
INTEREST.—Any 
amount owed by the recipient of a loan 
under paragraph (1) who is required to 
repay the loan under clause (i) shall bear 
interest at a penalty rate determined by 
the Secretary to deter recipients of loans 
under paragraph (1) from relocating pro-
duction activities as described in clause (i). 
‘‘(iii) PERIOD
OF
REPAYMENT.—Re-
payment of a loan under clause (i) shall be 
for a duration determined by the Sec-
retary. 
‘‘(F) COMPLIANCE WITH WAGE RATE RE-
QUIREMENTS.—Each recipient of a loan shall 
undertake and agree to incorporate or cause to 
be incorporated into all contracts for construc-
tion, alteration or repair, which are paid for in 
whole or in part with funds obtained pursuant 
to such loan, a requirement that all laborers 
and mechanics employed by contractors and 
subcontractors performing construction, alter-
ation or repair shall be paid wages at rates not 
less than those determined by the Secretary of
549 
Labor, in accordance with subchapter IV of 
chapter 31 of title 40, United States Code 
(known as the ‘Davis-Bacon Act’), to be pre-
vailing for the corresponding classes of laborers 
and mechanics employed on projects of a char-
acter similar to the contract work in the same 
locality in which the work is to be performed. 
The Secretary of Labor shall have, with respect 
to the labor standards specified in this subpara-
graph, the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (15 
Fed. Reg. 3176; 64 Stat. 1267) and section 
3145 of title 40, United States Code. 
‘‘(G) ANNUAL REPORTS BY LOAN RECIPI-
ENTS.—Each recipient of a loan issued by a 
State under paragraph (1) shall, not less fre-
quently than once each year during the term of 
the loan, submit to such State a report con-
taining such information as the Secretary may 
specify for purposes of the Program, including 
information that the Secretary can use to deter-
mine whether a recipient of a loan is required 
to repay the loan under subparagraph (E). 
‘‘(3) ANNUAL
REPORTS
BY
GRANT
RECIPI-
ENTS.—Each recipient of a grant under the Pro-
550 
gram shall, not less frequently than once each year, 
submit to the Secretary a report on the impact of 
each loan issued by the State under the Program 
and the aggregate impact of all loans so issued, in-
cluding the following: 
‘‘(A) The sales increased or retained. 
‘‘(B) Cost savings or costs avoided. 
‘‘(C) Additional investment encouraged. 
‘‘(D) Jobs created or retained. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$15,000,000,000 for each of fiscal years 2010 and 2011.’’. 
SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFAC-
TURING PARTNERSHIPS. 
(a) HOLLINGS MANUFACTURING PARTNERSHIP PRO-
GRAM.—Section 25(b) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278k(b)) is amend-
ed— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(4) the establishment of a clean energy manu-
facturing supply chain initiative—
551 
‘‘(A) to support manufacturers in their 
identification of and diversification to new mar-
kets, including support for manufacturers 
transitioning to the use of clean energy supply 
chains; 
‘‘(B) to assist manufacturers improve their 
competitiveness by reducing energy intensity 
and greenhouse gas production, including the 
use of energy intensive feedstocks; 
‘‘(C) to increase adoption and implementa-
tion of innovative manufacturing technologies; 
‘‘(D) to coordinate and leverage the exper-
tise of the National Laboratories and Tech-
nology Centers and the Industrial Assessment 
Centers of the Department of Energy to meet 
the needs of manufacturers; and 
‘‘(E) to identify, assist, and certify manu-
facturers 
seeking 
loans 
under 
section 
27(e)(1).’’. 
(b) REDUCTION IN COST SHARE REQUIREMENTS.— 
Section 25(c) of such Act (15 U.S.C. 278k(c)) is amend-
ed— 
(1) in paragraph (1), by inserting ‘‘or as pro-
vided in paragraph (5)’’ after ‘‘not to exceed six 
years’’;
553 
(5) $400,000,000 for fiscal year 2014. 
SEC. 248. TECHNICAL AMENDMENTS. 
(a) AMENDMENT
TO
NATIONAL
INSTITUTE
OF 
STANDARDS AND TECHNOLOGY ACT.—Section 25 of the 
National Institute of Standards and Technology Act (15 
U.S.C. 278k(b)) is amended— 
(1) in subsection (a), by striking ‘‘(hereafter in 
this Act referred to as the ‘Centers’)’’; and 
(2) by adding at the end the following: 
‘‘(g) DESIGNATION.— 
‘‘(1) HOLLINGS MANUFACTURING PARTNERSHIP 
PROGRAM.—The program under this section shall be 
known as the ‘Hollings Manufacturing Partnership 
Program’. 
‘‘(2) HOLLINGS
MANUFACTURING
EXTENSION 
CENTERS.—The Regional Centers for the Transfer 
of Manufacturing Technology created and supported 
under subsection (a) shall be known as the ‘Hollings 
Manufacturing Extension Centers’ (in this Act re-
ferred to as the ‘Centers’).’’. 
(b) AMENDMENT
TO CONSOLIDATED APPROPRIA-
TIONS ACT, 2005.—Division B of title II of the Consoli-
dated Appropriations Act, 2005 (Public Law 108–447; 
118 Stat. 2879; 15 U.S.C. 278k note) is amended under 
the heading ‘‘INDUSTRIAL TECHNOLOGY SERVICES’’ by
554 
striking ‘‘2007: Provided further, That’’ and all that fol-
lows through ‘‘Extension Centers.’’ and inserting ‘‘2007.’’. 
Subtitle E—Improvements in En-
ergy Savings Performance Con-
tracting 
SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION REQUIREMENTS FOR TASK OR DE-
LIVERY ORDERS UNDER ENERGY SAVINGS PERFORM-
ANCE CONTRACTS.— 
(1) COMPETITION REQUIREMENTS.—Subsection 
(a) of section 801 of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287(a)) is amended by 
adding at the end the following paragraph: 
‘‘(3)(A) The head of a Federal agency may issue a 
task or delivery order under an energy savings perform-
ance contract by— 
‘‘(i) notifying all contractors that have received 
an award under such contract that the agency pro-
poses to discuss energy savings performance services 
for some or all of its facilities and, following a rea-
sonable period of time to provide a proposal in re-
sponse to the notice, soliciting an expression of in-
terest in performing site surveys or investigations 
and feasibility designs and studies and the submis-
sion of qualifications from such contractors, and in-
555 
cluding in such notice summary information con-
cerning energy use for any facilities that the agency 
has specific interest in including in such contract; 
‘‘(ii) reviewing all expressions of interest and 
qualifications submitted pursuant to the notice 
under clause (i); 
‘‘(iii) selecting two or more contractors (from 
among those reviewed under clause (ii)) to conduct 
discussions concerning the contractors’ respective 
qualifications to implement potential energy con-
servation measures, including requesting references 
demonstrating experience on similar efforts and the 
resulting energy savings of such similar efforts, and 
providing an opportunity for a post-award debriefing 
to all contractors that submitted expressions of in-
terest and qualifications under clause (ii) pursuant 
to the notice; 
‘‘(iv) selecting and authorizing— 
‘‘(I) more than one contractor (from 
among those selected under clause (iii)) to con-
duct site surveys, investigations, feasibility de-
signs and studies or similar assessments for the 
energy savings performance contract services 
(or for discrete portions of such services), for 
the purpose of allowing each such contractor to
556 
submit a firm, fixed-price proposal to imple-
ment specific energy conservation measures; or 
‘‘(II) one contractor (from among those se-
lected under clause (iii)) to conduct a site sur-
vey, investigation, a feasibility design and study 
or similar for the purpose of allowing the con-
tractor to submit a firm, fixed-price proposal to 
implement specific energy conservation meas-
ures; 
‘‘(v) negotiating a task or delivery order for en-
ergy savings performance contracting services with 
the contractor or contractors selected under clause 
(iv) based on the energy conservation measures iden-
tified; and 
‘‘(vi) issuing a task or delivery order for energy 
savings performance contracting services to such 
contractor or contractors. 
‘‘(B) The issuance of a task or delivery order for en-
ergy savings performance contracting services pursuant to 
subparagraph (A) is deemed to satisfy the task and deliv-
ery order competition requirements in section 2304c(d) of 
title 10, United States Code, and section 303J(d) of the 
Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253j(d)).
557 
‘‘(C) The Secretary may issue guidance as necessary 
to agencies issuing task or delivery orders pursuant to 
subparagraph (A).’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) is inapplicable to task or delivery 
orders issued before the date of enactment of this 
section. 
(b) INCLUSION
OF
THERMAL
RENEWABLE
EN-
ERGY.—Section 203 of the Energy Policy Act of 2005 (42 
U.S.C. 15852) is amended— 
(1) in subsection (a), by striking ‘‘electric’’; and 
(2) in subsection (b)(2), by inserting ‘‘or ther-
mal’’ after ‘‘means electric’’. 
(c) CREDIT FOR RENEWABLE ENERGY PRODUCED 
AND USED ON SITE.—Subsection (c) of section 203 of the 
Energy Policy Act of 2005 (42 U.S.C. 15852) is amended 
to read as follows: 
‘‘(c) CALCULATION.—Renewable energy produced at 
a Federal facility, on Federal lands, or on Indian lands 
(as defined in title XXVI of the Energy Policy Act of 1992 
(25 U.S.C. 3501 et seq.)) shall be calculated separately 
from renewable energy consumed at a Federal facility, and 
each may be used to comply with the consumption require-
ment under subsection (a).’’.
558 
(d) FINANCING FLEXIBILITY.—Section 801(a)(2)(E) 
of the National Energy Conservation Policy Act (42 
U.S.C. 8287(a)(2)(E)) is amended by striking ‘‘In’’ and 
inserting ‘‘Notwithstanding any other provision of law, 
in’’. 
Subtitle F—Public Institutions 
SEC. 261. PUBLIC INSTITUTIONS. 
Section 399A of the Energy Policy and Conservation 
Act (42 U.S.C. 6371h–1) is amended— 
(1) in subsection (a)(5), by striking ‘‘or a des-
ignee’’ and inserting ‘‘an Indian tribe, a not-for- 
profit hospital or not-for-profit inpatient health care 
facility, or a designated agent’’; 
(2) in subsection (c)(1), by striking subpara-
graph (C); 
(3) 
in 
subsection 
(f)(3)(A), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$2,500,000’’; and 
(4) 
in 
subsection 
(i)(1), 
by 
striking 
‘‘$250,000,000 for each of fiscal years 2009 through 
2013’’ and inserting ‘‘$250,000,000 for each of fis-
cal years 2010 through 2015’’. 
SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY. 
Section 545(b)(3) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17155(b)(3)) is amend-
ed—