I 
109TH CONGRESS 
2D SESSION 
H. R. 5927 
To provide energy independence to Americans, to increase the efficiency 
and decrease the environmental impact of America’s energy policy, to 
increase America’s research and development in energy, and to encourage 
the development and use of renewable forms of energy. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2006 
Mr. CARDIN introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committees on 
Ways and Means, Transportation and Infrastructure, Government Re-
form, and Science, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide energy independence to Americans, to increase 
the efficiency and decrease the environmental impact of 
America’s energy policy, to increase America’s research 
and development in energy, and to encourage the devel-
opment and use of renewable forms of energy. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Energy Independence Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—AN ENERGY PLAN THAT CHANGES WITH INNOVATIONS 
Sec. 101. Purpose and goals. 
Sec. 102. Energy Policy Commission. 
TITLE II—INCREASING EFFICIENCY FOR AMERICAN CONSUMERS 
Sec. 201. Automobile average fuel economy standards. 
Sec. 202. Energy Star program funding. 
Sec. 203. Energy Star certification for solar water heaters. 
Sec. 204. Fuel efficiency standards for replacement tires. 
Sec. 205. Appliance standards. 
Sec. 206. Increase in energy efficient commercial buildings deduction. 
TITLE III—ENCOURAGING THE DEVELOPMENT AND 
AVAILABILITY OF RENEWABLE ENERGY 
Sec. 301. Federal renewable portfolio standard. 
Sec. 302. Electricity transmission lines designed to carry electricity from renew-
able energy resources. 
Sec. 303. Extension through 2017 for placing qualified facilities in service for 
producing renewable electric energy. 
Sec. 304. Net metering. 
Sec. 305. Loan guarantees for biorefineries and renewable energy production 
facilities. 
TITLE IV—INCREASING THE RENEWABLE ENERGY USE AND 
ENERGY EFFICIENCY OF THE FEDERAL GOVERNMENT 
Sec. 401. Federal energy efficiency. 
Sec. 402. Green building standards for Federal buildings. 
Sec. 403. Federal renewable and clean energy use. 
Sec. 404. Fuel economy of the Federal fleet of vehicles. 
Sec. 405. Federal vehicle efficiency requirement. 
TITLE V—INCREASING AMERICAN ENERGY RESEARCH AND 
DEVELOPMENT 
Sec. 501. Authorization of appropriations for the Department of Energy for 
basic research. 
Sec. 502. Mathematics, Science, and Engineering Education at the Department 
of Energy. 
Sec. 503. Department of Energy early career research grants. 
Sec. 504. Advanced Research Projects Authority—Energy. 
TITLE VI—INCREASING FEDERAL PUBLIC TRANSIT FUNDING 
AND EFFICIENCY INCENTIVES 
Sec. 601. Transit-oriented development corridors. 
Sec. 602. Weatherization assistance. 
Sec. 603. Federal support for commercialization of new technologies. 
Sec. 604. Telecommuting tax credit. 
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TITLE I—AN ENERGY PLAN THAT 
CHANGES WITH INNOVATIONS 
SEC. 101. PURPOSE AND GOALS. 
It is the purpose of this Act to facilitate the achieve-
ment of the following 2 Congressional goals: 
(1) ACHIEVING
ENERGY
INDEPENDENCE
BY 
2016.—Meeting all but 10 percent of the United 
States energy needs from domestic energy sources 
by 2016. 
(2) ACHIEVING FOSSIL FUEL INDEPENDENCE 
BY 2026.—Meeting all but 20 percent of the United 
States energy needs from non-fossil fuel sources by 
2026. 
SEC. 102. ENERGY POLICY COMMISSION. 
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the ‘‘National Commission on En-
ergy Independence’’ (in this section referred to as the 
‘‘Commission’’). 
(b) PURPOSE.—The Commission shall conduct a 
comprehensive review of United States energy policy for 
the following purposes: 
(1) REVIEW.—Reviewing relevant analyses of 
the current and long-term energy policy and condi-
tions in the United States. 
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(2) 
IDENTIFYING
PROBLEMS.—Identifying 
problems that may threaten the long-term energy 
policy goals of independence. 
(3) ANALYZING POTENTIAL SOLUTIONS.—Ana-
lyzing potential solutions to problems that threaten 
the long-term ability to achieve these energy policy 
goals. 
(4) PROVIDING RECOMMENDATIONS.—Providing 
recommendations that will ensure that the United 
States energy policy goals are met. 
(c) REPORT AND RECOMMENDATIONS.— 
(1) IN GENERAL.—Not later than December 31 
of 2008, 2010, 2012, and 2014, the Commission 
shall transmit to the President and Congress a re-
port on the progress of United States energy policy 
towards meeting its long-term goals of energy inde-
pendence, including a detailed statement of the find-
ings, conclusions, and recommendations of the Com-
mission. 
(2) 
LEGISLATIVE
LANGUAGE.—If 
a 
rec-
ommendation submitted under paragraph (1) in-
volves legislative action, the report shall include pro-
posed legislative language to carry out such action. 
(d) MEMBERSHIP.—The Commission shall be com-
posed of 15 members of whom— 
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(1) 3 shall be appointed by the President; 
(2) 3 shall be appointed by the majority leader 
of the Senate; 
(3) 3 shall be appointed by the minority leader 
of the Senate; 
(4) 3 shall be appointed by the Speaker of the 
House of Representatives; and 
(5) 3 shall be appointed by the minority leader 
of the House of Representatives. 
(e) CO-CHAIRPERSONS.—The President shall des-
ignate 2 Co-chairpersons from among the members of the 
Commission appointed, who shall not both be affiliated 
with the same political party. 
(f) DATE.—Members of the Commission shall be ap-
pointed by not later than 90 days after the date of enact-
ment of this Act. 
(g) PERIOD OF APPOINTMENT.—Members shall be 
appointed for the life of the Commission. Any vacancy in 
the Commission shall not affect its powers, but shall be 
filled in the same manner as the original appointment. 
(h) STAFF.— 
(1) DIRECTOR.—The Commission shall have a 
staff headed by an Executive Director. 
(2) STAFF APPOINTMENT.—The Executive Di-
rector may appoint such personnel as the Executive 
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Director and the Commission determine to be appro-
priate. 
(3) EXPERTS
AND
CONSULTANTS.—With the 
approval of the Commission, the Executive Director 
may procure temporary and intermittent services 
under section 3109(b) of title 5, United States Code. 
(4) FEDERAL AGENCIES.— 
(A) DETAIL
OF
GOVERNMENT
EMPLOY-
EES.—Upon the request of the Commission, the 
head of any Federal agency may detail, without 
reimbursement, any of the personnel of such 
agency to the Commission to assist in carrying 
out the duties of the Commission. Any such de-
tail shall not interrupt or otherwise affect the 
civil service status or privileges of the Federal 
employee. 
(B) TECHNICAL
ASSISTANCE.—Upon the 
request of the Commission, the head of a Fed-
eral agency shall provide such technical assist-
ance to the Commission as the Commission de-
termines to be necessary to carry out its duties. 
(5) RESOURCES.—The Commission shall have 
reasonable access to materials, resources, statistical 
data, and other information the Commission deter-
mines to be necessary to carry out its duties from 
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all relevant Executive Agencies. The Co-Chair-
persons shall make requests for such access in writ-
ing when necessary. 
TITLE 
II—INCREASING 
EFFI-
CIENCY FOR AMERICAN CON-
SUMERS 
SEC. 201. AUTOMOBILE AVERAGE FUEL ECONOMY STAND-
ARDS. 
(a) PHASED INCREASES IN FUEL ECONOMY STAND-
ARDS.— 
(1) PASSENGER AUTOMOBILES.— 
(A) 
MINIMUM
STANDARDS.—Section 
32902(b) of title 49, United States Code, is 
amended to read as follows: 
‘‘(b) PASSENGER AUTOMOBILES.—Except as other-
wise provided under this section, the average fuel economy 
standard for passenger automobiles manufactured by a 
manufacturer in a model year— 
‘‘(1) after model year 1984 and before model 
year 2009 shall be 25 miles per gallon; 
‘‘(2) after model year 2008 and before model 
year 2012 shall be 30 miles per gallon; 
‘‘(3) after model year 2011 and before model 
year 2015 shall be 35 miles per gallon; 
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‘‘(4) after model year 2014 and before model 
year 2017 shall be 40 miles per gallon; and 
‘‘(5) after model year 2016 shall be 45 miles 
per gallon.’’. 
(B) HIGHER
STANDARDS
BY
REGULA-
TION.—Section 32902(c) of title 49, United 
States Code, is amended— 
(i) in paragraph (1)— 
(I) by striking ‘‘Subject to para-
graph (2) of this subsection, the’’ and 
inserting ‘‘The’’; 
(II) 
striking 
‘‘amending 
the 
standard’’ and inserting ‘‘increasing 
the standard otherwise applicable’’; 
and 
(III) by striking ‘‘Section 553 of 
title 5 applies to’’ and inserting the 
following: 
‘‘(2) Section 553 of title 5 applies to’’; and 
(ii) by striking paragraph (2). 
(b) INCREASED INCLUSIVENESS OF DEFINITIONS OF 
AUTOMOBILE AND PASSENGER AUTOMOBILE.— 
(1) AUTOMOBILE.— 
(A) IN GENERAL.—Section 32901(a)(3) of 
title 49, United States Code, is amended— 
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(i) by striking ‘‘6,000 pounds’’ each 
place it appears and inserting ‘‘12,000 
pounds’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘10,000 pounds’’ 
and inserting ‘‘14,000 pounds’’; and 
(II) in clause (ii), by striking ‘‘an 
average fuel economy standard’’ and 
all that follows through ‘‘conservation 
or’’. 
(B) SPECIAL RULE.—Section 32908(a)(1) 
of such title is amended by striking ‘‘8,500 
pounds’’ and inserting ‘‘14,000 pounds’’. 
(2) 
PASSENGER
AUTOMOBILE.—Section 
32901(a)(16) of title 49, United States Code, is 
amended to read as follows: 
‘‘(16) ‘passenger automobile’ means an auto-
mobile having a gross vehicle weight of 10,000 
pounds or less that is designed to be used principally 
for the transportation of persons;’’. 
(c) CIVIL PENALTIES.— 
(1) INCREASED PENALTY FOR VIOLATIONS OF 
FUEL ECONOMY STANDARDS.—Section 32912(b) of 
title 49, United States Code, is amended— 
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(A) by inserting ‘‘(1)’’ before ‘‘Except as 
provided’’; 
(B) by striking ‘‘$5’’ and inserting ‘‘the 
dollar amount applicable under paragraph (2)’’; 
(C) by redesignating paragraphs (1), (2), 
and (3) as subparagraphs (A), (B), and (C), re-
spectively; and 
(D) by adding at the end the following: 
‘‘(2)(A) The dollar amount referred to in para-
graph (1) is $10, as increased pursuant subpara-
graph (B); 
‘‘(B) Effective on October 1 of each year, the 
dollar amount applicable under subparagraph (A) 
shall be increased by the percentage (rounded to the 
nearest 1⁄10 of 1 percent) by which the Consumer 
Price Index for all-urban consumers (published by 
the Department of Labor) for July of such year ex-
ceeds such price index for July of the preceding 
year. The amount calculated under the preceding 
sentence shall be rounded to the nearest $0.10.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
32912(c)(1) of title 49, United States Code, is 
amended— 
(A) by striking subparagraph (B); and 
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(B) by redesignating subparagraphs (C) 
and (D) as subparagraphs (B) and (C), respec-
tively. 
(3) APPLICABILITY.—The amendments made 
by this section shall apply with respect to auto-
mobiles manufactured for model years beginning 
after the date of enactment of this Act. 
SEC. 202. ENERGY STAR PROGRAM FUNDING. 
There are authorized to be appropriated for carrying 
out the Energy Star program under section 324A of the 
Energy Policy and Conservation Act— 
(1) to the Administrator of the Environmental 
Protection Agency $100,000,000 for each fiscal 
year; and 
(2) to the Secretary of Energy $12,000,000 for 
each fiscal year. 
SEC. 203. ENERGY STAR CERTIFICATION FOR SOLAR 
WATER HEATERS. 
Not later than January 1, 2008, the Secretary of En-
ergy, in consultation with the Administrator of the Envi-
ronmental Protection Agency, shall adopt regulations es-
tablishing Energy Star Program requirements and an En-
ergy Star rating program for commercial and residential 
solar water heating devices. 
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SEC. 204. FUEL EFFICIENCY STANDARDS FOR REPLACE-
MENT TIRES. 
(a) STANDARDS FOR TIRES MANUFACTURED FOR 
INTERSTATE COMMERCE.—Section 30123 of title 49, 
United States Code, is amended— 
(1) in subsection (b), by inserting after the first 
sentence the following: ‘‘The grading system shall 
include standards for rating the fuel efficiency of 
tires designed for use on automobiles subject to the 
automobile fuel economy standards under chapter 
329’’; and 
(2) by adding at the end of the following: 
‘‘(d) NATIONAL
TIRE
FUEL
EFFICIENCY
PRO-
GRAM.— 
‘‘(1) The secretary shall develop and carry out 
a national tire efficiency program for tires designed 
for use on passenger cars and light trucks. such pro-
gram shall include— 
‘‘(A) policies and procedures for testing 
and labeling tires for fuel economy to enable 
tire buyers to make informed purchasing deci-
sions about the fuel economy of tires; 
‘‘(B) policies and procedures to promote 
the purchase of energy-efficient replacement 
tires, including purchase incentives, website list-
ings on the Internet, printed fuel economy 
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guide booklets, and mandatory requirements for 
tire retailers to provide tire buyers with fuel-ef-
ficiency information on tires; and 
‘‘(C) minimum fuel economy standards for 
tires, promulgated by the Secretary. 
‘‘(2) The minimum fuel economy standards for 
tires shall— 
‘‘(A) ensure that, in conjunction with the 
requirements of paragraph (1)(B), the average 
fuel economy of replacement tires is equal to or 
better than the average fuel economy of tires 
sold as original equipment; 
‘‘(B) secure the maximum technically fea-
sible and cost-effective fuel savings; and 
‘‘(C) not adversely affect tire safety; 
‘‘(D) not adversely affect the average tire 
life of replacement tires; 
‘‘(E) Incorporate the results from— 
‘‘(i) laboratory testing; and 
‘‘(ii) to the extent appropriate and 
available, on-road fleet testing programs 
conducted by manufacturers; and 
‘‘(F) not adversely affect efforts to manage 
scrap tires. 
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‘‘(3) The policies, procedures, and standards 
developed under paragraph (1) shall apply to all tire 
types an models that are covered by the Uniform 
Tire Quality Grading Standards in section 575.104 
of title 49, Code of Federal Regulations (or any suc-
cessor regulation). 
‘‘(4) Not less than every 3 years, the Secretary 
shall review the minimum fuel economy standards in 
effect for tires under this subsection and revise the 
standards as necessary to ensure compliance with re-
quirements under paragraph (2). The Secretary may 
not reduce the average fuel economy standards ap-
plicable to replacement tires. 
‘‘(5) Nothing in this section shall be construed 
to preempt any provisions of state law relating to 
higher fuel economy standards applicable to replace-
ment tires designed for use on passenger cars and 
light trucks. nothing in this chapter shall apply to— 
‘‘(A) a tire or group of tires with the same 
product identification number, plant, and year, 
for which the volume of tires produced or im-
ported is less than 15,000 annually; 
‘‘(B) a deep tread, winter-type snow tire, 
space-saver tire, or temporary use spare tire; 
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‘‘(C) a tire with a normal rim diameter of 
12 inches or less; 
‘‘(D) a motorcycle tire; or 
‘‘(E) a tire manufactured specifically for 
use in an off-road motorized recreational vehi-
cle. 
‘‘(6) In this subsection, the term ‘fuel economy’, 
with respect to tires, means the extent to which the 
tire contribute to the fuel economy of the motor ve-
hicles on which the tire are mounted.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
30103(b)(1) of title 49, United States Code, is amended 
by striking ‘‘When’’ and inserting ‘‘Except as provided in 
section 30123(d) of this title, when’’. 
(c) IMPLEMENTATION.—The Secretary of Transpor-
tation shall ensure that the national tire fuel efficiency 
program required under subsection (d) of section 30123 
of title 49, United States Code, (as added by subsection 
(a)(2)), is administered so as to apply the policies, proce-
dures, and standards developed under paragraph (1) of 
such subsection beginning not later than March 31, 2008. 
SEC. 205. APPLIANCE STANDARDS. 
(a) STANDARDS FOR HOUSEHOLD APPLIANCES IN 
STANDBY MODE.—Section 325 of the Energy Policy and 
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Conservation Act (42 U.S.C. 6295) is amended by adding 
at the end the following: 
‘‘(hh) STANDBY MODE ELECTRIC ENERGY CON-
SUMPTION BY HOUSEHOLD APPLIANCES.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘household appliance’ means any device that uses 
household electric current and operates in a standby 
mode except digital televisions, digital set top boxes, 
and digital video recorders. 
‘‘(2) STANDARD.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a household appliance that 
is manufactured in, or imported for sale in, the 
United States on or after the date that is 3 
years after the date of enactment of this sub-
section shall not consume in standby mode 
more than 1 watt. 
‘‘(B) ANALOG TELEVISIONS.—In the case 
of analog televisions, the Secretary shall pre-
scribe, on or after the date that is 2 years after 
the date of enactment of this subsection, in ac-
cordance with subsections (o) and (p), an en-
ergy conservation standard that is techno-
logically feasible and economically justified 
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under subsection (o)(2)(A) (in lieu of the 1 
watt standard under subparagraph (A)). 
‘‘(3) EXEMPTIONS.— 
‘‘(A) APPLICATION.—A manufacturer or 
importer of a household appliance or their des-
ignated agent may submit to the Secretary an 
application for an exemption of a household ap-
pliance or class of appliances from the standard 
under paragraph (2). 
‘‘(B) CRITERIA
FOR
EXEMPTION.—The 
Secretary shall grant an exemption for a house-
hold appliance or class of appliances for which 
an application is made under subparagraph (A) 
if the applicant provides evidence showing that, 
and the Secretary determines that— 
‘‘(i) it is not technically feasible to 
modify the household appliance or appli-
ances concerned to enable them to meet 
the standard; 
‘‘(ii) the standard is incompatible with 
an energy efficiency standard applicable to 
the household appliance or class of appli-
ances under another subsection; or 
‘‘(iii) the cost of electricity that a typ-
ical consumer would save in operating the 
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household appliance or class of appliances 
meeting the standard would not equal the 
increase in the price of the household ap-
pliance or class of appliances that would be 
attributable to the modifications that 
would be necessary to enable the household 
appliance or class of appliances to meet the 
standard by the earlier of— 
‘‘(I) the date that is 7 years after 
the date of purchase of the household 
appliance concerned; or 
‘‘(II) the end of the useful life of 
the household appliance. 
‘‘(C) DETERMINATION OF TECHNICAL IN-
FEASIBILITY.—If the Secretary determines that 
it is not technically feasible to modify a house-
hold appliance or class of appliances to meet 
the standard under paragraph (2), the Sec-
retary shall establish a different standard for 
the household appliance or class of appliances 
in accordance with the criteria under subsection 
(l). 
‘‘(4) TEST PROCEDURE.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
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the Secretary shall establish a test procedure 
for determining the amount of consumption of 
power by a household appliance operating in 
standby mode. 
‘‘(B) CONSIDERATIONS.—In establishing 
the test procedure, the Secretary shall con-
sider— 
‘‘(i) 
international 
test 
procedures 
under development; 
‘‘(ii) test procedures used in connec-
tion with the Energy Star program; and 
‘‘(iii) test procedures used for meas-
uring power consumption in standby mode 
in other countries. 
‘‘(5) 
FURTHER
REDUCTION
OF
STANDBY 
POWER CONSUMPTION.—The Secretary shall provide 
technical assistance to manufacturers in achieving 
further reductions in standby mode electric energy 
consumption by household appliances. 
‘‘(ii) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION
BY DIGITAL TELEVISIONS, DIGITAL SET TOP 
BOXES, AND DIGITAL VIDEO RECORDERS.—The Sec-
retary shall initiate within 5 years of the date of enact-
ment of this subsection a rulemaking to prescribe, in ac-
cordance with subsections (o) and (p), an energy conserva-
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tion standard of standby mode electric energy consump-
tion by digital television sets, digital set top boxes, and 
digital video recorders. The Secretary shall issue a final 
rule prescribing such standards not later than 18 months 
thereafter. In determining whether a standard under this 
subsection is technologically feasible and economically jus-
tified under subsection (o)(2)(A), the Secretary shall con-
sider the potential negative effects on market penetration 
by digital products covered under this subsection, and 
shall consider any recommendations by the Federal Com-
munications Commission regarding such effects.’’. 
(b) STANDARDS FOR NONCOVERED PRODUCTS.— 
(1) Section 325(m) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(m)) is amended 
as follows: 
(A) Inserting ‘‘(1)’’ before ‘‘After’’. 
(B) Inserting the following at the end: 
‘‘(2) Not later than one year after the date of enact-
ment of this paragraph, and every 5 years thereafter, the 
Secretary shall conduct a rulemaking to determine wheth-
er consumer or commercial products not classified as a 
covered product under section 322(a)(1) through (19) 
meet the criteria of section 322(b)(1). If the Secretary 
finds that a consumer or commercial product not classified 
as a covered product meets the criteria of section 
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322(b)(1), the Secretary shall prescribe, in accordance 
with subsections (o) and (p), an energy conservation 
standard for such consumer or commercial product.’’. 
(2) Part B of title III of such Act is amended 
as follows: 
(A) In the heading for such part by insert-
ing ‘‘AND COMMERCIAL’’ after ‘‘CON-
SUMER’’. 
(B) In section 321(2) by striking ‘‘con-
sumer product of a type specified in section 
322’’ and inserting ‘‘consumer or commercial 
product of a type specified in section 322(a)’’. 
(C) In paragraphs (4), (5), (7), (12), (13), 
(14), (15), (32), and (36) of section 321 by 
striking ‘‘consumer’’ in each place it appears 
and inserting ‘‘covered’’. 
(D) In section 322(a) by inserting ‘‘or 
commercial’’ after ‘‘consumer’’ the first place it 
appears and in paragraph (19). 
(E) In section 322(b), by inserting ‘‘or 
commercial’’ after ‘‘consumer’’ in each place it 
appears. 
(F) In section 322(b)(1)(B) and (b)(2)(A), 
by inserting ‘‘(or per-business in the case of a 
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commercial product)’’ after ‘‘per-household’’ in 
each place it appears. 
(G) In section 322(b)(2)(A) by inserting 
‘‘(or businesses in the case of commercial prod-
ucts)’’ after ‘‘households’’ in each place it ap-
pears. 
(H) In section 322(b)(2)(C) by striking 
‘‘term’’ and inserting ‘‘terms’’ and by inserting 
‘‘and business’’ after ‘‘household’’. 
(I) In sections 323 though 325 (except in 
section 
325(o)(2)(B)(iii), 
(q)(1), 
and 
(bb)(3)(B)), and in section 337(a)(3) and the 
last sentence of section 337(a), by inserting ‘‘or 
commercial’’ after ‘‘consumer’’ in each place it 
appears. 
(c) EFFICIENCY STANDARDS FOR OTHER CONSUMER 
AND COMMERCIAL PRODUCTS.— 
(1) DEFINITIONS.—Section 321 of the Energy 
Policy and Conservation Act (42 U.S.C. 6291) is 
amended by adding the following at the end thereof: 
‘‘(52) The term ‘residential furnace fan’ means 
an electric fan installed as part of a furnace for pur-
poses of circulating air through the system air fil-
ters, the heat exchangers or heating elements of the 
furnace, and the duct work. 
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‘‘(53) The terms ‘residential central air condi-
tioner fan’ and ‘heat pump circulation fan’ mean an 
electric fan installed as part of a central air condi-
tioner or heat pump for purposes of circulating air 
through the system air filters, the heat exchangers 
of the air conditioner or heat pump, and the duct 
work.’’. 
(2) TESTING REQUIREMENTS.—Section 323 of 
the Energy Policy and Conservation Act (42 U.S.C. 
6293) is amended by adding the following at the end 
thereof: 
‘‘(g) ADDITIONAL COVERED PRODUCTS.—The Sec-
retary shall within 18 months after the date of enactment 
of this subsection prescribe testing requirements for the 
consumer and commercial products referred to in para-
graphs (52) and (53) of section 321. Such testing require-
ments shall be based on existing test procedures used in 
industry to the extent practical and reasonable. Such test 
procedures shall include efficiency at both maximum out-
put and at an output no more than 50 percent of the max-
imum output.’’. 
(3) STANDARDS
FOR
ADDITIONAL
COVERED 
PRODUCTS.—Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295), as amended by 
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subsection (a) of this section, is amended by adding 
the following at the end thereof: 
‘‘(jj) RESIDENTIAL FURNACE FANS AND CENTRAL 
AIR CONDITIONER FANS.—(1) The Secretary shall, within 
18 months after the date of enactment of this subsection, 
assess the current and projected future market for the 
products referred to in paragraphs (52) and (53) of sec-
tion 321. This assessment shall include an examination 
of the types of these products sold, the number of these 
products in use, annual sales of these products, energy 
used by these products sold, estimates of the potential en-
ergy savings from specific technical improvements to these 
products, and an examination of the cost-effectiveness of 
these improvements. Prior to the end of this time period, 
the Secretary shall hold an initial scoping workshop to dis-
cuss and receive input to plans for developing minimum 
efficiency standards for these products. 
‘‘(2) The Secretary shall within 24 months after the 
date on which testing requirements are prescribed by the 
Secretary pursuant to section 323(g), prescribe, by rule, 
energy conservation standards for residential furnace fans 
and residential central air conditioner fans. In establishing 
these standards, the Secretary shall use the criteria and 
procedures contained in this section. Any standard pre-
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scribed under this section shall apply to products manu-
factured 36 months after the date such rule is published.’’. 
(4) LABELING.—Section 324(a) of the Energy 
Policy and Conservation Act (42 U.S.C. 6294(a)) is 
amended by adding the following at the end thereof: 
‘‘(6) The Secretary shall within 6 months after 
the date on which energy conservation standards are 
prescribed by the Secretary, prescribe, by rule, label-
ing requirements for the consumer and commercial 
products referred to in paragraphs (52) and (53) of 
section 321. These requirements shall take effect on 
the same date as the standards prescribed pursuant 
to section 325(jj).’’. 
(5) COVERED
PRODUCTS.—Section 322(a) of 
the Energy Policy and Conservation Act (42 U.S.C. 
6292(a)) is amended by redesignating paragraph 
(19) as (20) and by inserting the following after 
paragraph (18): 
‘‘(19) Beginning on the effective date for stand-
ards established pursuant to subsection (jj) of sec-
tion 325, each product referred to in such subsection 
(jj).’’. 
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SEC. 206. INCREASE IN ENERGY EFFICIENT COMMERCIAL 
BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Subsection (b)(1)(A) of section 
179D of the Internal Revenue Code of 1986 (relating to 
energy efficient commercial buildings deduction) is amend-
ed by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of enactment of this Act, in taxable years begin-
ning after such date. 
TITLE III—ENCOURAGING THE 
DEVELOPMENT 
AND 
AVAIL-
ABILITY OF RENEWABLE EN-
ERGY 
SEC. 301. FEDERAL RENEWABLE PORTFOLIO STANDARD. 
(a) IN GENERAL.—Title VI of the Public Utility Reg-
ulatory Policies Act of 1978 is amended by adding at the 
end the following: 
‘‘SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD. 
‘‘(a) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—For each calendar year beginning in calendar 
year 2008, each retail electric supplier shall submit to the 
Secretary, not later than April 1 of the following calendar 
year, renewable energy credits in an amount equal to the 
required annual percentage specified in subsection (b). 
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‘‘(b) REQUIRED ANNUAL PERCENTAGE.—For cal-
endar years 2008 through 2037, the required annual per-
centage of the retail electric supplier’s base amount that 
shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement 
pursuant to subsection (c), shall be the percentage speci-
fied in the following table: 
Required annual 
‘‘Calendar Years 
percentage 
2008 ...................................................................................................
2009 ...................................................................................................
2010 ...................................................................................................
2011 ...................................................................................................
2012 ...................................................................................................
2013 ...................................................................................................
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 ...................................................................................................
2020 and thereafter ...........................................................................
25. 
‘‘(c) SUBMISSION OF CREDITS.—(1) A retail electric 
supplier may satisfy the requirements of subsection (a) 
through the submission of renewable energy credits— 
‘‘(A) issued to the retail electric supplier under 
subsection (d); 
‘‘(B) obtained by purchase or exchange under 
subsection (e); or 
‘‘(C) borrowed under subsection (f). 
‘‘(2) A renewable energy credit may be counted to-
ward compliance with subsection (a) only once. 
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‘‘(d) ISSUANCE
OF CREDITS.—(1) The Secretary 
shall establish by rule, not later than 1 year after the date 
of enactment of this section, a program to issue and mon-
itor the sale or exchange of, and track, renewable energy 
credits and enforce the requirements of this section. 
‘‘(2) Under the program established by the Secretary, 
an entity that generates electric energy through the use 
of a renewable energy resource may apply to the Secretary 
for the issuance of renewable energy credits. The applicant 
must demonstrate that the electric energy will be trans-
mitted onto the grid or, in the case of a generation offset, 
that the electric energy offset would have otherwise been 
consumed on site. The application shall indicate— 
‘‘(A) the type of renewable energy resource used 
to produce the electricity; 
‘‘(B) the location where the electric energy was 
produced; and 
‘‘(C) any other information the Secretary deter-
mines appropriate. 
‘‘(3)(A) Except as provided in subparagraphs (B), 
(C), and (D), the Secretary shall issue to each entity that 
generates electric energy one renewable energy credit for 
each kilowatt hour of electric energy the entity generates 
from the date of enactment of this section and in each 
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subsequent calendar year through the use of a renewable 
energy resource at an eligible facility. 
‘‘(B) For incremental hydropower the renewable en-
ergy credits shall be calculated based on the expected in-
crease in average annual generation resulting from the ef-
ficiency improvements or capacity additions. The number 
of credits shall be calculated using the same water flow 
information used to determine a historic average annual 
generation baseline for the hydroelectric facility and cer-
tified by the Secretary or the Federal Energy Regulatory 
Commission. The calculation of the renewable energy cred-
its for incremental hydropower shall not be based on any 
operational changes at the hydroelectric facility not di-
rectly associated with the efficiency improvements or ca-
pacity additions. 
‘‘(C) For electric energy generated by a renewable en-
ergy resource at an on-site eligible facility, used to offset 
part or all of the customer’s requirements for electric en-
ergy, the Secretary shall issue three renewable energy 
credits for each kilowatt hour generated. 
‘‘(D) In the case of a retail electric supplier that is 
subject to a State renewable standard program that— 
‘‘(i) requires the generation of electricity from 
renewable energy; or 
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‘‘(ii) provides for alternative compliance pay-
ments in satisfaction of applicable State require-
ments under the program, the Secretary shall issue 
an amount of renewable energy credits equal to the 
amount of renewable energy credits that the Sec-
retary would have issued had a payment of the same 
amount been made to the Secretary under sub-
section (g). 
Such renewable energy credits may be applied against the 
retail electric supplier’s own required annual percentage 
or may be transferred for use only by an associate com-
pany of the retail electric supplier. 
‘‘(E) To be eligible for a renewable energy credit, the 
unit of electric energy generated through the use of a re-
newable energy resource may be sold or may be used by 
the generator. If both a renewable energy resource and 
a nonrenewable energy resource are used to generate the 
electric energy, the Secretary shall issue renewable energy 
credits based on the proportion of the renewable energy 
resources used. The Secretary shall identify renewable en-
ergy credits by type and date of generation. 
‘‘(4) When a generator sells electric energy generated 
through the use of a renewable energy resource to a retail 
electric supplier under a contract subject to section 210 
of this Act, the retail electric supplier is treated as the 
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generator of the electric energy for the purposes of this 
section or the duration of the contract. 
‘‘(5) The Secretary shall issue renewable energy cred-
its for existing facility offsets to be applied against a retail 
electric supplier’s required annual percentage. Such cred-
its are not tradeable and may be used only in the calendar 
year generation actually occurs. 
‘‘(e) CREDIT TRADING.—A renewable energy credit, 
may be sold or exchanged by the entity to whom issued 
or by any other entity who acquires the renewable energy 
credit, except for those renewable energy credits issued 
pursuant to subsection (d)(3)(E). A renewable energy 
credit for any year that is not used to satisfy the minimum 
renewable generation requirement of subsection (a) for 
that year may be carried forward for use within the next 
4 years. 
‘‘(f) RENEWABLE ENERGY CREDIT BORROWING.—At 
any time before the end of calendar year 2010, a retail 
electric supplier that has reason to believe it will not have 
sufficient renewable energy credits to comply with sub-
section (a) may— 
‘‘(1) submit a plan to the Secretary dem-
onstrating that the retail electric supplier will earn 
sufficient credits within the next 3 calendar years 
which, when taken into account, will enable the re-
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tail electric supplier to meet the requirements of 
subsection (a) for calendar year 2010 and the subse-
quent calendar years involved; and 
‘‘(2) upon the approval of the plan by the Sec-
retary, apply renewable energy credits that the plan 
demonstrates will be earned within the next 3 cal-
endar years to meet the requirements of subsection 
(a) for each calendar year involved. 
The retail electric supplier must repay all of the borrowed 
renewable energy credits by submitting an equivalent 
number of renewable energy credits, in addition to those 
otherwise required under subsection (a), by calendar year 
2008 or any earlier deadlines specified in the approved 
plan. Failure to repay the borrowed renewable energy 
credits shall subject the retail electric supplier to civil pen-
alties under subsection (h) for violation of the require-
ments of subsection (a) for each calendar year involved. 
‘‘(g) CREDIT COST CAP.—The Secretary shall offer 
renewable energy credits for sale at the lesser of 3 cents 
per kilowatt-hour or 200 percent of the average market 
value of renewable credits for the applicable compliance 
period. On January 1 of each year following calendar year 
2006, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the 
Gross Domestic Product Implicit Price Deflator. 
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‘‘(h) ENFORCEMENT.—A retail electric supplier that 
does not submit renewable energy credits as required 
under subsection (a) shall be liable for the payment of a 
civil penalty. That penalty shall be calculated on the basis 
of the number of renewable energy credits not submitted, 
multiplied by the lesser of 4.5 cents or 300 percent of the 
average market value of credits for the compliance period. 
Any such penalty shall be due and payable without de-
mand to the Secretary as provided in the regulations 
issued under subsection (d). 
‘‘(i) INFORMATION
COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
‘‘(1) the annual electric energy generation and 
renewable energy generation of any entity applying 
for renewable energy credits under this section; 
‘‘(2) the validity of renewable energy credits 
submitted by a retail electric supplier to the Sec-
retary; and 
‘‘(3) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(j) ENVIRONMENTAL
SAVINGS
CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
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‘‘(k) EXISTING PROGRAMS.—(1) This section does 
not preclude a State from imposing additional renewable 
energy requirements in that State, including specifying eli-
gible technologies under such State requirements. 
‘‘(2) In the rule establishing this program, the Sec-
retary shall incorporate common elements of existing re-
newable energy programs, including state programs, to en-
sure administrative ease, market transparency and effec-
tive enforcement. The Secretary shall work with the States 
to minimize administrative burdens and costs and to avoid 
duplicating compliance charges to retail electric suppliers. 
‘‘(l) DEFINITIONS.—For purposes of this section: 
‘‘(1) BIOMASS.—The term ‘biomass’ means any 
organic material that is available on a renewable or 
recurring basis, including dedicated energy crops, 
trees grown for energy production, wood waste and 
wood residues, plants (including aquatic plants, 
grasses, and agricultural crops), residues, fibers, 
animal wastes and other organic waste materials 
(but not including unsegregated municipal solid 
waste (garbage)), and fats and oils, except that with 
respect to material removed from National Forest 
System lands the term includes only organic mate-
rial from— 
‘‘(A) precommercial thinnings; 
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‘‘(B) slash; 
‘‘(C) brush; and 
‘‘(D) mill residues. 
‘‘(2) ELIGIBLE
FACILITY.—The term ‘eligible 
facility’ means— 
‘‘(A) a facility for the generation of electric 
energy from a renewable energy resource that is 
placed in service on or after the date of enact-
ment of this section or the effective date of the 
applicable State renewable portfolio standard 
program; or 
‘‘(B) a repowering or cofiring increment 
that is placed in service on or after the date of 
enactment of this section or the effective date 
of the applicable State renewable portfolio 
standard program at a facility for the genera-
tion of electric energy from a renewable energy 
resource that was placed in service before that 
date. 
‘‘(3) EXISTING FACILITY OFFSET.—The term 
‘existing facility offset’ means renewable energy gen-
erated from an existing facility, not classified as an 
eligible facility, that is owned or under contract, di-
rectly or indirectly, to a retail electric supplier on 
the date of enactment of this section. 
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‘‘(4) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional genera-
tion that is achieved from increased efficiency or ad-
ditions of capacity on or after the date of enactment 
of this section or the effective date of the applicable 
State renewable portfolio standard program, at a hy-
droelectric facility that was placed in service before 
that date. 
‘‘(5) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated by a re-
newable energy resource. 
‘‘(6) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means solar, wind, 
ocean, geothermal energy, biomass (not including 
municipal solid waste), landfill gas, a generation off-
set, or incremental hydropower. 
‘‘(7) REPOWERING OR COFIRING INCREMENT.— 
The 
term 
‘repowering 
or 
cofiring 
increment’ 
means— 
‘‘(A) the additional generation from a 
modification that is placed in service on or after 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program to expand electricity 
production at a facility used to generate electric 
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energy from a renewable energy resource or to 
cofire biomass that was placed in service before 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program, or 
‘‘(B) the additional generation above the 
average generation in the 3 years preceding the 
date of enactment of this section or the effec-
tive date of the applicable State renewable port-
folio standard program to expand electricity 
production at a facility used to generate electric 
energy from a renewable energy resource or to 
cofire biomass that was placed in service before 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program. 
‘‘(8) RETAIL ELECTRIC SUPPLIER.—The term 
‘retail electric supplier’ means a person that sells 
electric energy to electric consumers and sold not 
less than 1,000,000 megawatt-hours of electric en-
ergy to electric consumers for purposes other than 
resale during the preceding calendar year; except 
that such term does not include the United States, 
a State or any political subdivision of a State, or any 
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