H. R. 6—268 
‘‘(4) REGULATIONS.—Not later than October 1, 2008, the 
Secretary shall issue final regulations to implement the pro-
gram under this section. 
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum Federal share 
for carrying out a project under this section shall be 80 percent 
of the project cost. The non-Federal share may be provided by 
any non-Federal source in cash, equipment, or supplies. Other 
in-kind contributions may be approved by the Secretary on a case- 
by-case basis consistent with this chapter. 
‘‘(c) USE OF FUNDS.—Grants provided under this section shall 
be used to implement track capital projects as soon as possible. 
In no event shall grant funds be contractually obligated for a 
project later than the end of the third Federal fiscal year following 
the year in which the grant was awarded. Any funds not so obligated 
by the end of such fiscal year shall be returned to the Secretary 
for reallocation. 
‘‘(d) EMPLOYEE PROTECTION.—The Secretary shall require as 
a condition of any grant made under this section that the recipient 
railroad provide a fair arrangement at least as protective of the 
interests of employees who are affected by the project to be funded 
with the grant as the terms imposed under section 11326(a), as 
in effect on the date of the enactment of this chapter. 
‘‘(e) LABOR STANDARDS.— 
‘‘(1) PREVAILING WAGES.—The Secretary shall ensure that 
laborers and mechanics employed by contractors and sub-
contractors in construction work financed by a grant made 
under this section will be paid wages not less than those 
prevailing on similar construction in the locality, as determined 
by the Secretary of Labor under subchapter IV of chapter 
31 of title 40 (commonly known as the ‘Davis-Bacon Act’). 
The Secretary shall make a grant under this section only after 
being assured that required labor standards will be maintained 
on the construction work. 
‘‘(2) WAGE RATES.—Wage rates in a collective bargaining 
agreement negotiated under the Railway Labor Act (45 U.S.C. 
151 et seq.) are deemed for purposes of this subsection to 
comply with the subchapter IV of chapter 31 of title 40. 
‘‘(f) STUDY.—The Secretary shall conduct a study of the projects 
carried out with grant assistance under this section to determine 
the extent to which the program helps promote a reduction in 
fuel use associated with the transportation of freight and dem-
onstrates innovative technologies that increase fuel economy, reduce 
greenhouse gas emissions, and lower the costs of operation. Not 
later than March 31, 2009, the Secretary shall submit a report 
to the Committee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on the study, including any rec-
ommendations the Secretary considers appropriate regarding the 
program. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary $50,000,000 for each of fiscal 
years 2008 through 2011 for carrying out this section.’’. 
(b) CLERICAL AMENDMENT.—The item relating to chapter 223 
in the table of chapters of subtitle V of title 49, United States 
Code, is amended to read as follows: 
‘‘223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS ........22301’’.
H. R. 6—269 
Subtitle C—Marine Transportation 
SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE. 
(a) IN GENERAL.—Title 46, United States Code, is amended 
by adding after chapter 555 the following: 
‘‘CHAPTER 556—SHORT SEA TRANSPORTATION 
‘‘Sec. 55601. Short sea transportation program. 
‘‘Sec. 55602. Cargo and shippers. 
‘‘Sec. 55603. Interagency coordination. 
‘‘Sec. 55604. Research on short sea transportation. 
‘‘Sec. 55605. Short sea transportation defined. 
‘‘§ 55601. Short sea transportation program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transportation shall 
establish a short sea transportation program and designate short 
sea transportation projects to be conducted under the program 
to mitigate landside congestion. 
‘‘(b) PROGRAM ELEMENTS.—The program shall encourage the 
use of short sea transportation through the development and expan-
sion of— 
‘‘(1) documented vessels; 
‘‘(2) shipper utilization; 
‘‘(3) port and landside infrastructure; and 
‘‘(4) marine transportation strategies by State and local 
governments. 
‘‘(c) SHORT SEA TRANSPORTATION ROUTES.—The Secretary shall 
designate short sea transportation routes as extensions of the sur-
face transportation system to focus public and private efforts to 
use the waterways to relieve landside congestion along coastal 
corridors. The Secretary may collect and disseminate data for the 
designation and delineation of short sea transportation routes. 
‘‘(d) PROJECT DESIGNATION.—The Secretary may designate a 
project to be a short sea transportation project if the Secretary 
determines that the project may— 
‘‘(1) offer a waterborne alternative to available landside 
transportation services using documented vessels; and 
‘‘(2) provide transportation services for passengers or 
freight (or both) that may reduce congestion on landside infra-
structure using documented vessels. 
‘‘(e) ELEMENTS OF PROGRAM.—For a short sea transportation 
project designated under this section, the Secretary may— 
‘‘(1) promote the development of short sea transportation 
services; 
‘‘(2) coordinate, with ports, State departments of transpor-
tation, localities, other public agencies, and the private sector 
and on the development of landside facilities and infrastructure 
to support short sea transportation services; and 
‘‘(3) develop performance measures for the short sea 
transportation program. 
‘‘(f) MULTISTATE, STATE AND REGIONAL TRANSPORTATION PLAN-
NING.—The Secretary, in consultation with Federal entities and 
State and local governments, shall develop strategies to encourage 
the use of short sea transportation for transportation of passengers 
and cargo. The Secretary shall—
H. R. 6—270 
‘‘(1) assess the extent to which States and local govern-
ments include short sea transportation and other marine 
transportation solutions in their transportation planning; 
‘‘(2) encourage State departments of transportation to 
develop strategies, where appropriate, to incorporate short sea 
transportation, ferries, and other marine transportation solu-
tions for regional and interstate transport of freight and pas-
sengers in their transportation planning; and 
‘‘(3) encourage groups of States and multi-State transpor-
tation entities to determine how short sea transportation can 
address congestion, bottlenecks, and other interstate transpor-
tation challenges. 
‘‘§ 55602. Cargo and shippers 
‘‘(a) 
MEMORANDUMS
OF
AGREEMENT.—The 
Secretary 
of 
Transportation shall enter into memorandums of understanding 
with the heads of other Federal entities to transport federally 
owned or generated cargo using a short sea transportation project 
designated under section 55601 when practical or available. 
‘‘(b) SHORT-TERM INCENTIVES.—The Secretary shall consult 
shippers and other participants in transportation logistics and 
develop proposals for short-term incentives to encourage the use 
of short sea transportation. 
‘‘§ 55603. Interagency coordination 
‘‘The Secretary of Transportation shall establish a board to 
identify and seek solutions to impediments hindering effective use 
of short sea transportation. The board shall include representatives 
of the Environmental Protection Agency and other Federal, State, 
and local governmental entities and private sector entities. 
‘‘§ 55604. Research on short sea transportation 
‘‘The Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, may conduct 
research on short sea transportation, regarding— 
‘‘(1) the environmental and transportation benefits to be 
derived from short sea transportation alternatives for other 
forms of transportation; 
‘‘(2) technology, vessel design, and other improvements that 
would reduce emissions, increase fuel economy, and lower costs 
of short sea transportation and increase the efficiency of inter-
modal transfers; and 
‘‘(3) solutions to impediments to short sea transportation 
projects designated under section 55601. 
‘‘§ 55605. Short sea transportation defined 
‘‘In this chapter, the term ‘short sea transportation’ means 
the carriage by vessel of cargo— 
‘‘(1) that is— 
‘‘(A) contained in intermodal cargo containers and 
loaded by crane on the vessel; or 
‘‘(B) loaded on the vessel by means of wheeled tech-
nology; and 
‘‘(2) that is— 
‘‘(A) loaded at a port in the United States and unloaded 
either at another port in the United States or at a port
H. R. 6—271 
in Canada located in the Great Lakes Saint Lawrence 
Seaway System; or 
‘‘(B) loaded at a port in Canada located in the Great 
Lakes Saint Lawrence Seaway System and unloaded at 
a port in the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters at the begin-
ning of subtitle V of such title is amended by inserting after the 
item relating to chapter 555 the following: 
‘‘556. Short Sea Transportation .......................................................................55601’’. 
(c) REGULATIONS.— 
(1) INTERIM REGULATIONS.—Not later than 90 days after 
the date of enactment of this Act, the Secretary of Transpor-
tation shall issue temporary regulations to implement the pro-
gram under this section. Subchapter II of chapter 5 of title 
5, United States Code, does not apply to a temporary regulation 
issued under this paragraph or to an amendment to such a 
temporary regulation. 
(2) FINAL REGULATIONS.—Not later than October 1, 2008, 
the Secretary of Transportation shall issue final regulations 
to implement the program under this section. 
SEC. 
1122. 
SHORT 
SEA 
SHIPPING 
ELIGIBILITY 
FOR 
CAPITAL 
CONSTRUCTION FUND. 
(a) DEFINITION OF QUALIFIED VESSEL.—Section 53501 of title 
46, United States Code, is amended— 
(1) in paragraph (5)(A)(iii) by striking ‘‘or noncontiguous 
domestic’’ and inserting ‘‘noncontiguous domestic, or short sea 
transportation trade’’; and 
(2) by inserting after paragraph (6) the following: 
‘‘(7) SHORT SEA TRANSPORTATION TRADE.—The term ‘short 
sea transportation trade’ means the carriage by vessel of 
cargo— 
‘‘(A) that is— 
‘‘(i) contained in intermodal cargo containers and 
loaded by crane on the vessel; or 
‘‘(ii) loaded on the vessel by means of wheeled 
technology; and 
‘‘(B) that is— 
‘‘(i) loaded at a port in the United States and 
unloaded either at another port in the United States 
or at a port in Canada located in the Great Lakes 
Saint Lawrence Seaway System; or 
‘‘(ii) loaded at a port in Canada located in the 
Great Lakes Saint Lawrence Seaway System and 
unloaded at a port in the United States.’’. 
(b) ALLOWABLE PURPOSE.—Section 53503(b) of such title is 
amended by striking ‘‘or noncontiguous domestic trade’’ and 
inserting ‘‘noncontiguous domestic, or short sea transportation 
trade’’. 
SEC. 1123. SHORT SEA TRANSPORTATION REPORT. 
Not later than 1 year after the date of enactment of this 
Act, the Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, shall submit 
to the Committee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce, Science, and
H. R. 6—272 
Transportation of the Senate a report on the short sea transpor-
tation program established under the amendments made by section 
1121. The report shall include a description of the activities con-
ducted under the program, and any recommendations for further 
legislative or administrative action that the Secretary of Transpor-
tation considers appropriate. 
Subtitle D—Highways 
SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS. 
Section 120(c) of title 23, United States Code, is amended— 
(1) in the subsection heading by striking ‘‘FOR CERTAIN 
SAFETY PROJECTS’’; 
(2) by striking ‘‘The Federal share’’ and inserting the fol-
lowing: 
‘‘(1) CERTAIN SAFETY PROJECTS.—The Federal share’’; and 
(3) by adding at the end the following: 
‘‘(2) CMAQ PROJECTS.—The Federal share payable on 
account of a project or program carried out under section 149 
with funds obligated in fiscal year 2008 or 2009, or both, 
shall be not less than 80 percent and, at the discretion of 
the State, may be up to 100 percent of the cost thereof.’’. 
SEC. 1132. DISTRIBUTION OF RESCISSIONS. 
(a) IN GENERAL.—Any unobligated balances of amounts that 
are appropriated from the Highway Trust Fund for a fiscal year, 
and apportioned under chapter 1 of title 23, United States Code, 
before, on, or after the date of enactment of this Act and that 
are rescinded in fiscal year 2008 or fiscal year 2009 shall be distrib-
uted by the Secretary of Transportation within each State (as 
defined in section 101 of such title) among all programs for which 
funds are apportioned under such chapter for such fiscal year, 
to the extent sufficient funds remain available for obligation, in 
the ratio that the amount of funds apportioned for each program 
under such chapter for such fiscal year, bears to the amount of 
funds apportioned for all such programs under such chapter for 
such fiscal year. 
(b) ADJUSTMENTS.—A State may make adjustments to the dis-
tribution of a rescission within the State for a fiscal year under 
subsection (a) by transferring the amounts to be rescinded among 
the programs for which funds are apportioned under chapter 1 
of title 23, United States Code, for such fiscal year, except that 
in making such adjustments the State may not rescind from any 
such program more than 110 percent of the funds to be rescinded 
from the program for the fiscal year as determined by the Secretary 
of Transportation under subsection (a). 
(c) TREATMENT OF TRANSPORTATION ENHANCEMENT SET-ASIDE 
AND FUNDS SUBALLOCATED TO SUBSTATE AREAS.—Funds set aside 
under sections 133(d)(2) and 133(d)(3) of title 23, United States 
Code, shall be treated as being apportioned under chapter 1 of 
such title for purposes of subsection (a). 
SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE 
STREETS DESIGN TECHNIQUES. 
It is the sense of Congress that in constructing new roadways 
or rehabilitating existing facilities, State and local governments 
should consider policies designed to accommodate all users,
H. R. 6—275 
‘‘(II) shall reinstate the fee reductions under 
clause (i) when the conditions in clause (ii) no 
longer apply. 
‘‘(iv) NO INCREASE OF FEES.—The Administrator 
shall not increase the fees under paragraph (18) on 
loans made under this subsection that are not covered 
energy efficiency loans as a direct result of the pilot 
program. 
‘‘(F) GAO REPORT.— 
‘‘(i) IN GENERAL.—Not later than 1 year after the 
date that the pilot program terminates, the Comp-
troller General of the United States shall submit to 
the Committee on Small Business of the House of 
Representatives and the Committee on Small Business 
and Entrepreneurship of the Senate a report on the 
pilot program. 
‘‘(ii) CONTENTS.—The report submitted under 
clause (i) shall include— 
‘‘(I) the number of covered energy efficiency 
loans for which fees were reduced under the pilot 
program; 
‘‘(II) a description of the energy efficiency 
savings with the pilot program; 
‘‘(III) a description of the impact of the pilot 
program on the program under this subsection; 
‘‘(IV) an evaluation of the efficacy and poten-
tial fraud and abuse of the pilot program; and 
‘‘(V) recommendations for improving the pilot 
program.’’. 
SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 
the Small Business Administration and the Administrator 
thereof, respectively; 
(2) the term ‘‘association’’ means the association of small 
business development centers established under section 
21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)); 
(3) the term ‘‘disability’’ has the meaning given that term 
in section 3 of the Americans with Disabilities Act of 1990 
(42 U.S.C. 12102); 
(4) the term ‘‘Efficiency Program’’ means the Small Busi-
ness Energy Efficiency Program established under subsection 
(c)(1); 
(5) the term ‘‘electric utility’’ has the meaning given that 
term in section 3 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2602); 
(6) the term ‘‘high performance green building’’ has the 
meaning given that term in section 401; 
(7) the term ‘‘on-bill financing’’ means a low interest or 
no interest financing agreement between a small business con-
cern and an electric utility for the purchase or installation 
of equipment, under which the regularly scheduled payment 
of that small business concern to that electric utility is not 
reduced by the amount of the reduction in cost attributable 
to the new equipment and that amount is credited to the
H. R. 6—276 
electric utility, until the cost of the purchase or installation 
is repaid; 
(8) the term ‘‘small business concern’’ has the same 
meaning as in section 3 of the Small Business Act (15 U.S.C. 
632); 
(9) the term ‘‘small business development center’’ means 
a small business development center described in section 21 
of the Small Business Act (15 U.S.C. 648); 
(10) the term ‘‘telecommuting’’ means the use of tele-
communications to perform work functions under circumstances 
which reduce or eliminate the need to commute; 
(11) the term ‘‘Telecommuting Pilot Program’’ means the 
pilot program established under subsection (d)(1)(A); and 
(12) the term ‘‘veteran’’ has the meaning given that term 
in section 101 of title 38, United States Code. 
(b) IMPLEMENTATION OF SMALL BUSINESS ENERGY EFFICIENCY 
PROGRAM.— 
(1) IN GENERAL.—Not later than 90 days after the date 
of enactment of this Act, the Administrator shall promulgate 
final rules establishing the Government-wide program author-
ized under subsection (d) of section 337 of the Energy Policy 
and Conservation Act (42 U.S.C. 6307) that ensure compliance 
with that subsection by not later than 6 months after such 
date of enactment. 
(2) PROGRAM REQUIRED.—The Administrator shall develop 
and coordinate a Government-wide program, building on the 
Energy Star for Small Business program, to assist small busi-
ness concerns in— 
(A) becoming more energy efficient; 
(B) understanding the cost savings from improved 
energy efficiency; and 
(C) identifying financing options for energy efficiency 
upgrades. 
(3) 
CONSULTATION
AND
COOPERATION.—The 
program 
required by paragraph (2) shall be developed and coordinated— 
(A) in consultation with the Secretary of Energy and 
the Administrator of the Environmental Protection Agency; 
and 
(B) in cooperation with any entities the Administrator 
considers appropriate, such as industry trade associations, 
industry members, and energy efficiency organizations. 
(4) AVAILABILITY
OF
INFORMATION.—The Administrator 
shall make available the information and materials developed 
under the program required by paragraph (2) to— 
(A) small business concerns, including smaller design, 
engineering, and construction firms; and 
(B) other Federal programs for energy efficiency, such 
as the Energy Star for Small Business program. 
(5) STRATEGY AND REPORT.— 
(A) STRATEGY
REQUIRED.—The Administrator shall 
develop a strategy to educate, encourage, and assist small 
business concerns in adopting energy efficient building fix-
tures and equipment. 
(B) REPORT.—Not later than December 31, 2008, the 
Administrator shall submit to Congress a report containing 
a plan to implement the strategy developed under subpara-
graph (A).
H. R. 6—277 
(c) SMALL BUSINESS SUSTAINABILITY INITIATIVE.— 
(1) AUTHORITY.—The Administrator shall establish a Small 
Business Energy Efficiency Program to provide energy efficiency 
assistance to small business concerns through small business 
development centers. 
(2) SMALL BUSINESS DEVELOPMENT CENTERS.— 
(A) IN GENERAL.—In carrying out the Efficiency Pro-
gram, the Administrator shall enter into agreements with 
small business development centers under which such cen-
ters shall— 
(i) provide access to information and resources on 
energy efficiency practices, including on-bill financing 
options; 
(ii) conduct training and educational activities; 
(iii) offer confidential, free, one-on-one, in-depth 
energy audits to the owners and operators of small 
business concerns regarding energy efficiency practices; 
(iv) give referrals to certified professionals and 
other providers of energy efficiency assistance who 
meet such standards for educational, technical, and 
professional competency as the Administrator shall 
establish; 
(v) to the extent not inconsistent with controlling 
State public utility regulations, act as a facilitator 
between small business concerns, electric utilities, 
lenders, and the Administration to facilitate on-bill 
financing arrangements; 
(vi) provide necessary support to small business 
concerns to— 
(I) evaluate energy efficiency opportunities and 
opportunities to design or construct high perform-
ance green buildings; 
(II) evaluate renewable energy sources, such 
as the use of solar and small wind to supplement 
power consumption; 
(III) secure financing to achieve energy effi-
ciency or to design or construct high performance 
green buildings; and 
(IV) implement energy efficiency projects; 
(vii) assist owners of small business concerns with 
the development and commercialization of clean tech-
nology products, goods, services, and processes that 
use renewable energy sources, dramatically reduce the 
use of natural resources, and cut or eliminate green-
house gas emissions through— 
(I) technology assessment; 
(II) intellectual property; 
(III) Small Business Innovation Research 
submissions under section 9 of the Small Business 
Act (15 U.S.C. 638); 
(IV) strategic alliances; 
(V) business model development; and 
(VI) preparation for investors; and 
(viii) help small business concerns improve 
environmental performance by shifting to less haz-
ardous materials and reducing waste and emissions, 
including by providing assistance for small business
H. R. 6—278 
concerns to adapt the materials they use, the processes 
they operate, and the products and services they 
produce. 
(B) REPORTS.—Each small business development center 
participating in the Efficiency Program shall submit to 
the Administrator and the Administrator of the Environ-
mental Protection Agency an annual report that includes— 
(i) a summary of the energy efficiency assistance 
provided by that center under the Efficiency Program; 
(ii) the number of small business concerns assisted 
by that center under the Efficiency Program; 
(iii) statistics on the total amount of energy saved 
as a result of assistance provided by that center under 
the Efficiency Program; and 
(iv) any additional information determined nec-
essary by the Administrator, in consultation with the 
association. 
(C) REPORTS TO CONGRESS.—Not later than 60 days 
after the date on which all reports under subparagraph 
(B) relating to a year are submitted, the Administrator 
shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report 
summarizing the information regarding the Efficiency Pro-
gram submitted by small business development centers 
participating in that program. 
(3) ELIGIBILITY.—A small business development center 
shall be eligible to participate in the Efficiency Program only 
if that center is certified under section 21(k)(2) of the Small 
Business Act (15 U.S.C. 648(k)(2)). 
(4) SELECTION OF PARTICIPATING STATE PROGRAMS.—From 
among small business development centers submitting applica-
tions to participate in the Efficiency Program, the Adminis-
trator— 
(A) shall, to the maximum extent practicable, select 
small business development centers in such a manner so 
as to promote a nationwide distribution of centers partici-
pating in the Efficiency Program; and 
(B) may not select more than 1 small business develop-
ment center in a State to participate in the Efficiency 
Program. 
(5) MATCHING REQUIREMENT.—Subparagraphs (A) and (B) 
of section 21(a)(4) of the Small Business Act (15 U.S.C. 
648(a)(4)) shall apply to assistance made available under the 
Efficiency Program. 
(6) GRANT
AMOUNTS.—Each small business development 
center selected to participate in the Efficiency Program under 
paragraph (4) shall be eligible to receive a grant in an amount 
equal to— 
(A) not less than $100,000 in each fiscal year; and 
(B) not more than $300,000 in each fiscal year. 
(7) EVALUATION
AND
REPORT.—The Comptroller General 
of the United States shall— 
(A) not later than 30 months after the date of disburse-
ment of the first grant under the Efficiency Program, ini-
tiate an evaluation of that program; and
H. R. 6—279 
(B) not later than 6 months after the date of the 
initiation of the evaluation under subparagraph (A), submit 
to the Administrator, the Committee on Small Business 
and Entrepreneurship of the Senate, and the Committee 
on Small Business of the House of Representatives, a report 
containing— 
(i) the results of the evaluation; and 
(ii) any recommendations regarding whether the 
Efficiency Program, with or without modification, 
should be extended to include the participation of all 
small business development centers. 
(8) GUARANTEE.—To the extent not inconsistent with State 
law, the Administrator may guarantee the timely payment 
of a loan made to a small business concern through an on- 
bill financing agreement on such terms and conditions as the 
Administrator shall establish through a formal rulemaking, 
after providing notice and an opportunity for comment. 
(9) IMPLEMENTATION.—Subject to amounts approved in 
advance in appropriations Acts and separate from amounts 
approved to carry out section 21(a)(1) of the Small Business 
Act (15 U.S.C. 648(a)(1)), the Administrator may make grants 
or enter into cooperative agreements to carry out this sub-
section. 
(10) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are 
authorized to be appropriated such sums as are necessary to 
make grants and enter into cooperative agreements to carry 
out this subsection. 
(11) TERMINATION.—The authority under this subsection 
shall terminate 4 years after the date of disbursement of the 
first grant under the Efficiency Program. 
(d) SMALL BUSINESS TELECOMMUTING.— 
(1) PILOT PROGRAM.— 
(A) IN GENERAL.—The Administrator shall conduct, in 
not more than 5 of the regions of the Administration, 
a pilot program to provide information regarding telecom-
muting to employers that are small business concerns and 
to encourage such employers to offer telecommuting options 
to employees. 
(B) SPECIAL OUTREACH TO INDIVIDUALS WITH DISABIL-
ITIES.—In carrying out the Telecommuting Pilot Program, 
the Administrator shall make a concerted effort to provide 
information to— 
(i) small business concerns owned by or employing 
individuals with disabilities, particularly veterans who 
are individuals with disabilities; 
(ii) Federal, State, and local agencies having 
knowledge and expertise in assisting individuals with 
disabilities, including veterans who are individuals 
with disabilities; and 
(iii) any group or organization, the primary pur-
pose of which is to aid individuals with disabilities 
or veterans who are individuals with disabilities. 
(C) PERMISSIBLE ACTIVITIES.—In carrying out the Tele-
commuting Pilot Program, the Administrator may— 
(i) produce educational materials and conduct 
presentations designed to raise awareness in the small
H. R. 6—280 
business community of the benefits and the ease of 
telecommuting; 
(ii) conduct outreach— 
(I) to small business concerns that are consid-
ering offering telecommuting options; and 
(II) as provided in subparagraph (B); and 
(iii) acquire telecommuting technologies and equip-
ment to be used for demonstration purposes. 
(D) SELECTION
OF
REGIONS.—In determining which 
regions will participate in the Telecommuting Pilot Pro-
gram, the Administrator shall give priority consideration 
to regions in which Federal agencies and private-sector 
employers have demonstrated a strong regional commit-
ment to telecommuting. 
(2) REPORT TO CONGRESS.—Not later than 2 years after 
the date on which funds are first appropriated to carry out 
this subsection, the Administrator shall transmit to the Com-
mittee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Rep-
resentatives a report containing the results of an evaluation 
of the Telecommuting Pilot Program and any recommendations 
regarding whether the pilot program, with or without modifica-
tion, should be extended to include the participation of all 
regions of the Administration. 
(3) TERMINATION.—The Telecommuting Pilot Program shall 
terminate 4 years after the date on which funds are first 
appropriated to carry out this subsection. 
(4) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to the Administration $5,000,000 to 
carry out this subsection. 
(e) ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.—Section 
9 of the Small Business Act (15 U.S.C. 638) is amended by adding 
at the end the following: 
‘‘(z) ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.— 
‘‘(1) FEDERAL AGENCY ENERGY-RELATED PRIORITY.—In car-
rying out its duties under this section relating to SBIR and 
STTR solicitations by Federal departments and agencies, the 
Administrator shall— 
‘‘(A) ensure that such departments and agencies give 
high priority to small business concerns that participate 
in or conduct energy efficiency or renewable energy system 
research and development projects; and 
‘‘(B) include in the annual report to Congress under 
subsection (b)(7) a determination of whether the priority 
described in subparagraph (A) is being carried out. 
‘‘(2) CONSULTATION
REQUIRED.—The Administrator shall 
consult with the heads of other Federal departments and agen-
cies in determining whether priority has been given to small 
business concerns that participate in or conduct energy effi-
ciency or renewable energy system research and development 
projects, as required by this subsection. 
‘‘(3) GUIDELINES.—The Administrator shall, as soon as is 
practicable after the date of enactment of this subsection, issue 
guidelines and directives to assist Federal agencies in meeting 
the requirements of this subsection. 
‘‘(4) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘biomass’—
H. R. 6—281 
‘‘(i) means any organic material that is available 
on a renewable or recurring basis, including— 
‘‘(I) agricultural crops; 
‘‘(II) trees grown for energy production; 
‘‘(III) wood waste and wood residues; 
‘‘(IV) plants (including aquatic plants and 
grasses); 
‘‘(V) residues; 
‘‘(VI) fibers; 
‘‘(VII) animal wastes and other waste mate-
rials; and 
‘‘(VIII) fats, oils, and greases (including 
recycled fats, oils, and greases); and 
‘‘(ii) does not include— 
‘‘(I) paper that is commonly recycled; or 
‘‘(II) unsegregated solid waste; 
‘‘(B) the term ‘energy efficiency project’ means the 
installation or upgrading of equipment that results in a 
significant reduction in energy usage; and 
‘‘(C) the term ‘renewable energy system’ means a 
system of energy derived from— 
‘‘(i) a wind, solar, biomass (including biodiesel), 
or geothermal source; or 
‘‘(ii) hydrogen derived from biomass or water using 
an energy source described in clause (i).’’. 
SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP 
ENERGY EFFICIENT TECHNOLOGIES AND PURCHASES. 
(a) ELIGIBILITY
FOR ENERGY EFFICIENCY PROJECTS.—Section 
501(d)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 
695(d)(3)) is amended— 
(1) in subparagraph (G) by striking ‘‘or’’ at the end; 
(2) in subparagraph (H) by striking the period at the end 
and inserting a comma; 
(3) by inserting after subparagraph (H) the following: 
‘‘(I) reduction of energy consumption by at least 10 
percent, 
‘‘(J) increased use of sustainable design, including 
designs that reduce the use of greenhouse gas emitting 
fossil fuels, or low-impact design to produce buildings that 
reduce the use of non-renewable resources and minimize 
environmental impact, or 
‘‘(K) plant, equipment and process upgrades of renew-
able energy sources such as the small-scale production 
of energy for individual buildings or communities consump-
tion, commonly known as micropower, or renewable fuels 
producers including biodiesel and ethanol producers.’’; and 
(4) by adding at the end the following: ‘‘In subparagraphs 
(J) and (K), terms have the meanings given those terms under 
the Leadership in Energy and Environmental Design (LEED) 
standard for green building certification, as determined by the 
Administrator.’’. 
(b) LOANS FOR PLANT PROJECTS USED FOR ENERGY-EFFICIENT 
PURPOSES.—Section 502(2)(A) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 
(1) in clause (ii) by striking ‘‘and’’ at the end;
H. R. 6—282 
(2) in clause (iii) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(iv) $4,000,000 for each project that reduces the 
borrower’s energy consumption by at least 10 percent; 
and 
‘‘(v) $4,000,000 for each project that generates 
renewable energy or renewable fuels, such as biodiesel 
or ethanol production.’’. 
SEC. 1205. ENERGY SAVING DEBENTURES. 
(a) IN GENERAL.—Section 303 of the Small Business Investment 
Act of 1958 (15 U.S.C. 683) is amended by adding at the end 
the following: 
‘‘(k) ENERGY SAVING DEBENTURES.—In addition to any other 
authority under this Act, a small business investment company 
licensed in the first fiscal year after the date of enactment of 
this subsection or any fiscal year thereafter may issue Energy 
Saving debentures.’’. 
(b) DEFINITIONS.—Section 103 of the Small Business Investment 
Act of 1958 (15 U.S.C. 662) is amended— 
(1) in paragraph (16), by striking ‘‘and’’ at the end; 
(2) in paragraph (17), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(18) the term ‘Energy Saving debenture’ means a deferred 
interest debenture that— 
‘‘(A) is issued at a discount; 
‘‘(B) has a 5-year maturity or a 10-year maturity; 
‘‘(C) requires no interest payment or annual charge 
for the first 5 years; 
‘‘(D) is restricted to Energy Saving qualified invest-
ments; and 
‘‘(E) is issued at no cost (as defined in section 502 
of the Credit Reform Act of 1990) with respect to pur-
chasing and guaranteeing the debenture; and 
‘‘(19) the term ‘Energy Saving qualified investment’ means 
investment in a small business concern that is primarily 
engaged in researching, manufacturing, developing, or pro-
viding products, goods, or services that reduce the use or 
consumption of non-renewable energy resources.’’. 
SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES. 
(a) MAXIMUM LEVERAGE.—Section 303(b)(2) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by 
adding at the end the following: 
‘‘(D) 
INVESTMENTS
IN
ENERGY
SAVING
SMALL 
BUSINESSES.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), in calcu-
lating the outstanding leverage of a company for pur-
poses of subparagraph (A), the Administrator shall 
exclude the amount of the cost basis of any Energy 
Saving qualified investment in a smaller enterprise 
made in the first fiscal year after the date of enactment 
of this subparagraph or any fiscal year thereafter by 
a company licensed in the applicable fiscal year. 
‘‘(ii) LIMITATIONS.—
H. R. 6—283 
‘‘(I) AMOUNT
OF
EXCLUSION.—The amount 
excluded under clause (i) for a company shall not 
exceed 33 percent of the private capital of that 
company. 
‘‘(II) MAXIMUM INVESTMENT.—A company shall 
not make an Energy Saving qualified investment 
in any one entity in an amount equal to more 
than 20 percent of the private capital of that com-
pany. 
‘‘(III) 
OTHER
TERMS.—The 
exclusion 
of 
amounts under clause (i) shall be subject to such 
terms as the Administrator may impose to ensure 
that there is no cost (as that term is defined in 
section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) with respect to purchasing 
or guaranteeing any debenture involved.’’. 
(b) MAXIMUM
AGGREGATE
AMOUNT
OF
LEVERAGE.—Section 
303(b)(4) of the Small Business Investment Act of 1958 (15 U.S.C. 
303(b)(4)) is amended by adding at the end the following: 
‘‘(E) 
INVESTMENTS
IN
ENERGY
SAVING
SMALL 
BUSINESSES.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), in calcu-
lating the aggregate outstanding leverage of a company 
for purposes of subparagraph (A), the Administrator 
shall exclude the amount of the cost basis of any 
Energy Saving qualified investment in a smaller enter-
prise made in the first fiscal year after the date of 
enactment of this subparagraph or any fiscal year 
thereafter by a company licensed in the applicable 
fiscal year. 
‘‘(ii) LIMITATIONS.— 
‘‘(I) AMOUNT
OF
EXCLUSION.—The amount 
excluded under clause (i) for a company shall not 
exceed 33 percent of the private capital of that 
company. 
‘‘(II) MAXIMUM INVESTMENT.—A company shall 
not make an Energy Saving qualified investment 
in any one entity in an amount equal to more 
than 20 percent of the private capital of that com-
pany. 
‘‘(III) 
OTHER
TERMS.—The 
exclusion 
of 
amounts under clause (i) shall be subject to such 
terms as the Administrator may impose to ensure 
that there is no cost (as that term is defined in 
section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) with respect to purchasing 
or guaranteeing any debenture involved.’’. 
SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY. 
Title III of the Small Business Investment Act of 1958 (15 
U.S.C. 681 et seq.) is amended by adding at the end the following: 
‘‘PART C—RENEWABLE FUEL CAPITAL 
INVESTMENT PILOT PROGRAM 
‘‘SEC. 381. DEFINITIONS. 
‘‘In this part:
H. R. 6—284 
‘‘(1) OPERATIONAL
ASSISTANCE.—The term ‘operational 
assistance’ means management, marketing, and other technical 
assistance that assists a small business concern with business 
development. 
‘‘(2) PARTICIPATION AGREEMENT.—The term ‘participation 
agreement’ means an agreement, between the Administrator 
and a company granted final approval under section 384(e), 
that— 
‘‘(A) details the operating plan and investment criteria 
of the company; and 
‘‘(B) requires the company to make investments in 
smaller enterprises primarily engaged in researching, 
manufacturing, developing, producing, or bringing to 
market goods, products, or services that generate or support 
the production of renewable energy. 
‘‘(3) RENEWABLE
ENERGY.—The term ‘renewable energy’ 
means energy derived from resources that are regenerative 
or that cannot be depleted, including solar, wind, ethanol, and 
biodiesel fuels. 
‘‘(4) RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.—The 
term ‘Renewable Fuel Capital Investment company’ means a 
company— 
‘‘(A) that— 
‘‘(i) has been granted final approval by the 
Administrator under section 384(e); and 
‘‘(ii) has entered into a participation agreement 
with the Administrator; or 
‘‘(B) that has received conditional approval under sec-
tion 384(c). 
‘‘(5) STATE.—The term ‘State’ means each of the several 
States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United States. 
‘‘(6) VENTURE CAPITAL.—The term ‘venture capital’ means 
capital in the form of equity capital investments, as that term 
is defined in section 303(g)(4). 
‘‘SEC. 382. PURPOSES. 
‘‘The purposes of the Renewable Fuel Capital Investment Pro-
gram established under this part are— 
‘‘(1) to promote the research, development, manufacture, 
production, and bringing to market of goods, products, or serv-
ices that generate or support the production of renewable 
energy by encouraging venture capital investments in smaller 
enterprises primarily engaged such activities; and 
‘‘(2) to establish a venture capital program, with the mis-
sion of addressing the unmet equity investment needs of smaller 
enterprises engaged in researching, developing, manufacturing, 
producing, and bringing to market goods, products, or services 
that generate or support the production of renewable energy, 
to be administered by the Administrator— 
‘‘(A) to enter into participation agreements with Renew-
able Fuel Capital Investment companies; 
‘‘(B) to guarantee debentures of Renewable Fuel Cap-
ital Investment companies to enable each such company 
to make venture capital investments in smaller enterprises
H. R. 6—285 
engaged in the research, development, manufacture, 
production, and bringing to market of goods, products, or 
services that generate or support the production of renew-
able energy; and 
‘‘(C) to make grants to Renewable Fuel Investment 
Capital companies, and to other entities, for the purpose 
of providing operational assistance to smaller enterprises 
financed, or expected to be financed, by such companies. 
‘‘SEC. 383. ESTABLISHMENT. 
‘‘The Administrator shall establish a Renewable Fuel Capital 
Investment Program, under which the Administrator may— 
‘‘(1) enter into participation agreements for the purposes 
described in section 382; and 
‘‘(2) guarantee the debentures issued by Renewable Fuel 
Capital Investment companies as provided in section 385. 
‘‘SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT 
COMPANIES. 
‘‘(a) ELIGIBILITY.—A company is eligible to apply to be des-
ignated as a Renewable Fuel Capital Investment company if the 
company— 
‘‘(1) is a newly formed for-profit entity or a newly formed 
for-profit subsidiary of an existing entity; 
‘‘(2) has a management team with experience in alternative 
energy financing or relevant venture capital financing; and 
‘‘(3) has a primary objective of investment in smaller enter-
prises that research, manufacture, develop, produce, or bring 
to market goods, products, or services that generate or support 
the production of renewable energy. 
‘‘(b) APPLICATION.—A company desiring to be designated as 
a Renewable Fuel Capital Investment company shall submit an 
application to the Administrator that includes— 
‘‘(1) a business plan describing how the company intends 
to make successful venture capital investments in smaller 
enterprises primarily engaged in the research, manufacture, 
development, production, or bringing to market of goods, prod-
ucts, or services that generate or support the production of 
renewable energy; 
‘‘(2) information regarding the relevant venture capital 
qualifications and general reputation of the management of 
the company; 
‘‘(3) a description of how the company intends to seek 
to address the unmet capital needs of the smaller enterprises 
served; 
‘‘(4) a proposal describing how the company intends to 
use the grant funds provided under this part to provide oper-
ational assistance to smaller enterprises financed by the com-
pany, including information regarding whether the company 
has employees with appropriate professional licenses or will 
contract with another entity when the services of such an 
individual are necessary; 
‘‘(5) with respect to binding commitments to be made to 
the company under this part, an estimate of the ratio of cash 
to in-kind contributions; 
‘‘(6) a description of whether and to what extent the com-
pany meets the criteria under subsection (c)(2) and the objec-
tives of the program established under this part;
H. R. 6—286 
‘‘(7) information regarding the management and financial 
strength of any parent firm, affiliated firm, or any other firm 
essential to the success of the business plan of the company; 
and 
‘‘(8) such other information as the Administrator may 
require. 
‘‘(c) CONDITIONAL APPROVAL.— 
‘‘(1) IN
GENERAL.—From among companies submitting 
applications under subsection (b), the Administrator shall condi-
tionally approve companies to operate as Renewable Fuel Cap-
ital Investment companies. 
‘‘(2) SELECTION
CRITERIA.—In conditionally approving 
companies under paragraph (1), the Administrator shall con-
sider— 
‘‘(A) the likelihood that the company will meet the 
goal of its business plan; 
‘‘(B) the experience and background of the management 
team of the company; 
‘‘(C) the need for venture capital investments in the 
geographic areas in which the company intends to invest; 
‘‘(D) the extent to which the company will concentrate 
its activities on serving the geographic areas in which 
it intends to invest; 
‘‘(E) the likelihood that the company will be able to 
satisfy the conditions under subsection (d); 
‘‘(F) the extent to which the activities proposed by 
the company will expand economic opportunities in the 
geographic areas in which the company intends to invest; 
‘‘(G) the strength of the proposal by the company to 
provide operational assistance under this part as the pro-
posal relates to the ability of the company to meet 
applicable cash requirements and properly use in-kind con-
tributions, including the use of resources for the services 
of licensed professionals, when necessary, whether provided 
by employees or contractors; and 
‘‘(H) any other factor determined appropriate by the 
Administrator. 
‘‘(3) NATIONWIDE DISTRIBUTION.—From among companies 
submitting applications under subsection (b), the Administrator 
shall consider the selection criteria under paragraph (2) and 
shall, to the maximum extent practicable, approve at least 
one company from each geographic region of the Administra-
tion. 
‘‘(d) REQUIREMENTS TO BE MET FOR FINAL APPROVAL.— 
‘‘(1) IN
GENERAL.—The Administrator shall grant each 
conditionally approved company 2 years to satisfy the require-
ments of this subsection. 
‘‘(2) CAPITAL REQUIREMENT.—Each conditionally approved 
company shall raise not less than $3,000,000 of private capital 
or binding capital commitments from 1 or more investors (which 
shall not be departments or agencies of the Federal Govern-
ment) who meet criteria established by the Administrator. 
‘‘(3) NONADMINISTRATION
RESOURCES
FOR
OPERATIONAL 
ASSISTANCE.— 
‘‘(A) IN
GENERAL.—In order to provide operational 
assistance to smaller enterprises expected to be financed 
by the company, each conditionally approved company shall
H. R. 6—287 
have binding commitments (for contribution in cash or 
in-kind)— 
‘‘(i) from sources other than the Administration 
that meet criteria established by the Administrator; 
and 
‘‘(ii) payable or available over a multiyear period 
determined appropriate by the Administrator (not to 
exceed 10 years). 
‘‘(B) EXCEPTION.—The Administrator may, in the 
discretion of the Administrator and based upon a showing 
of special circumstances and good cause, consider an 
applicant to have satisfied the requirements of subpara-
graph (A) if the applicant has— 
‘‘(i) a viable plan that reasonably projects the 
capacity of the applicant to raise the amount (in cash 
or in-kind) required under subparagraph (A); and 
‘‘(ii) binding commitments in an amount equal to 
not less than 20 percent of the total amount required 
under paragraph (A). 
‘‘(C) LIMITATION.—The total amount of a in-kind con-
tributions by a company shall be not more than 50 percent 
of the total contributions by a company. 
‘‘(e) FINAL APPROVAL; DESIGNATION.—The Administrator shall, 
with respect to each applicant conditionally approved under sub-
section (c)— 
‘‘(1) grant final approval to the applicant to operate as 
a Renewable Fuel Capital Investment company under this part 
and designate the applicant as such a company, if the 
applicant— 
‘‘(A) satisfies the requirements of subsection (d) on 
or before the expiration of the time period described in 
that subsection; and 
‘‘(B) enters into a participation agreement with the 
Administrator; or 
‘‘(2) if the applicant fails to satisfy the requirements of 
subsection (d) on or before the expiration of the time period 
described in paragraph (1) of that subsection, revoke the condi-
tional approval granted under that subsection. 
‘‘SEC. 385. DEBENTURES. 
‘‘(a) IN GENERAL.—The Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures 
issued by any Renewable Fuel Capital Investment company. 
‘‘(b) TERMS AND CONDITIONS.—The Administrator may make 
guarantees under this section on such terms and conditions as 
it determines appropriate, except that— 
‘‘(1) the term of any debenture guaranteed under this sec-
tion shall not exceed 15 years; and 
‘‘(2) a debenture guaranteed under this section— 
‘‘(A) shall carry no front-end or annual fees; 
‘‘(B) shall be issued at a discount; 
‘‘(C) shall require no interest payments during the 
5-year period beginning on the date the debenture is issued; 
‘‘(D) shall be prepayable without penalty after the end 
of the 1-year period beginning on the date the debenture 
is issued; and
H. R. 6—288 
‘‘(E) shall require semiannual interest payments after 
the period described in subparagraph (C). 
‘‘(c) FULL FAITH
AND CREDIT
OF
THE UNITED STATES.—The 
full faith and credit of the United States is pledged to pay all 
amounts that may be required to be paid under any guarantee 
under this part. 
‘‘(d) MAXIMUM GUARANTEE.— 
‘‘(1) IN GENERAL.—Under this section, the Administrator 
may guarantee the debentures issued by a Renewable Fuel 
Capital Investment company only to the extent that the total 
face amount of outstanding guaranteed debentures of such com-
pany does not exceed 150 percent of the private capital of 
the company, as determined by the Administrator. 
‘‘(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For the pur-
poses of paragraph (1), private capital shall include capital 
that is considered to be Federal funds, if such capital is contrib-
uted by an investor other than a department or agency of 
the Federal Government. 
‘‘SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES. 
‘‘(a) ISSUANCE.—The Administrator may issue trust certificates 
representing ownership of all or a fractional part of debentures 
issued by a Renewable Fuel Capital Investment company and 
guaranteed by the Administrator under this part, if such certificates 
are based on and backed by a trust or pool approved by the Adminis-
trator and composed solely of guaranteed debentures. 
‘‘(b) GUARANTEE.— 
‘‘(1) IN
GENERAL.—The Administrator may, under such 
terms and conditions as it determines appropriate, guarantee 
the timely payment of the principal of and interest on trust 
certificates issued by the Administrator or its agents for pur-
poses of this section. 
‘‘(2) LIMITATION.—Each guarantee under this subsection 
shall be limited to the extent of principal and interest on 
the guaranteed debentures that compose the trust or pool. 
‘‘(3) PREPAYMENT OR DEFAULT.—If a debenture in a trust 
or pool is prepaid, or in the event of default of such a debenture, 
the guarantee of timely payment of principal and interest on 
the trust certificates shall be reduced in proportion to the 
amount of principal and interest such prepaid debenture rep-
resents in the trust or pool. Interest on prepaid or defaulted 
debentures shall accrue and be guaranteed by the Adminis-
trator only through the date of payment of the guarantee. 
At any time during its term, a trust certificate may be called 
for redemption due to prepayment or default of all debentures. 
‘‘(c) FULL FAITH
AND CREDIT
OF
THE UNITED STATES.—The 
full faith and credit of the United States is pledged to pay all 
amounts that may be required to be paid under any guarantee 
of a trust certificate issued by the Administrator or its agents 
under this section. 
‘‘(d) FEES.—The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but any agent 
of the Administrator may collect a fee approved by the Adminis-
trator for the functions described in subsection (f)(2). 
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—
H. R. 6—289 
‘‘(1) SUBROGATION.—If the Administrator pays a claim 
under a guarantee issued under this section, it shall be sub-
rogated fully to the rights satisfied by such payment. 
‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, or local law 
shall preclude or limit the exercise by the Administrator of 
its ownership rights in the debentures residing in a trust or 
pool against which trust certificates are issued under this sec-
tion. 
‘‘(f) MANAGEMENT AND ADMINISTRATION.— 
‘‘(1) REGISTRATION.—The Administrator may provide for 
a central registration of all trust certificates issued under this 
section. 
‘‘(2) CONTRACTING OF FUNCTIONS.— 
‘‘(A) IN
GENERAL.—The Administrator may contract 
with an agent or agents to carry out on behalf of the 
Administrator the pooling and the central registration func-
tions provided for in this section, including, not with-
standing any other provision of law— 
‘‘(i) maintenance, on behalf of and under the direc-
tion of the Administrator, of such commercial bank 
accounts or investments in obligations of the United 
States as may be necessary to facilitate the creation 
of trusts or pools backed by debentures guaranteed 
under this part; and 
‘‘(ii) the issuance of trust certificates to facilitate 
the creation of such trusts or pools. 
‘‘(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—Any 
agent performing functions on behalf of the Administrator 
under this paragraph shall provide a fidelity bond or insur-
ance in such amounts as the Administrator determines 
to be necessary to fully protect the interests of the United 
States. 
‘‘(3) REGULATION OF BROKERS AND DEALERS.—The Adminis-
trator may regulate brokers and dealers in trust certificates 
issued under this section. 
‘‘(4) ELECTRONIC REGISTRATION.—Nothing in this subsection 
may be construed to prohibit the use of a book-entry or other 
electronic form of registration for trust certificates issued under 
this section. 
‘‘SEC. 387. FEES. 
‘‘(a) IN GENERAL.—Except as provided in section 386(d), the 
Administrator may charge such fees as it determines appropriate 
with respect to any guarantee or grant issued under this part, 
in an amount established annually by the Administrator, as nec-
essary to reduce to zero the cost (as defined in section 502 of 
the Federal Credit Reform Act of 1990) to the Administration of 
purchasing and guaranteeing debentures under this part, which 
amounts shall be paid to and retained by the Administration. 
‘‘(b) OFFSET.—The Administrator may, as provided by section 
388, offset fees charged and collected under subsection (a). 
‘‘SEC. 388. FEE CONTRIBUTION. 
‘‘(a) IN GENERAL.—To the extent that amounts are made avail-
able to the Administrator for the purpose of fee contributions, 
the Administrator shall contribute to fees paid by the Renewable 
Fuel Capital Investment companies under section 387.
H. R. 6—290 
‘‘(b) ANNUAL ADJUSTMENT.—Each fee contribution under sub-
section (a) shall be effective for 1 fiscal year and shall be adjusted 
as necessary for each fiscal year thereafter to ensure that amounts 
under subsection (a) are fully used. The fee contribution for a 
fiscal year shall be based on the outstanding commitments made 
and the guarantees and grants that the Administrator projects 
will be made during that fiscal year, given the program level author-
ized by law for that fiscal year and any other factors that the 
Administrator determines appropriate. 
‘‘SEC. 389. OPERATIONAL ASSISTANCE GRANTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) AUTHORITY.—The Administrator may make grants to 
Renewable Fuel Capital Investment companies to provide oper-
ational assistance to smaller enterprises financed, or expected 
to be financed, by such companies or other entities. 
‘‘(2) TERMS.—A grant under this subsection shall be made 
over a multiyear period not to exceed 10 years, under such 
other terms as the Administrator may require. 
‘‘(3) GRANT AMOUNT.—The amount of a grant made under 
this subsection to a Renewable Fuel Capital Investment com-
pany shall be equal to the lesser of— 
‘‘(A) 10 percent of the resources (in cash or in-kind) 
raised by the company under section 384(d)(2); or 
‘‘(B) $1,000,000. 
‘‘(4) PRO RATA REDUCTIONS.—If the amount made available 
to carry out this section is insufficient for the Administrator 
to provide grants in the amounts provided for in paragraph 
(3), the Administrator shall make pro rata reductions in the 
amounts otherwise payable to each company and entity under 
such paragraph. 
‘‘(5) GRANTS
TO
CONDITIONALLY
APPROVED
COMPANIES.— 
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C), upon the request of a company conditionally approved 
under section 384(c), the Administrator shall make a grant 
to the company under this subsection. 
‘‘(B) REPAYMENT BY COMPANIES NOT APPROVED.—If a 
company receives a grant under this paragraph and does 
not enter into a participation agreement for final approval, 
the company shall, subject to controlling Federal law, repay 
the amount of the grant to the Administrator. 
‘‘(C) DEDUCTION OF GRANT TO APPROVED COMPANY.— 
If a company receives a grant under this paragraph and 
receives final approval under section 384(e), the Adminis-
trator shall deduct the amount of the grant from the total 
grant amount the company receives for operational assist-
ance. 
‘‘(D) AMOUNT OF GRANT.—No company may receive a 
grant of more than $100,000 under this paragraph. 
‘‘(b) SUPPLEMENTAL GRANTS.— 
‘‘(1) IN GENERAL.—The Administrator may make supple-
mental grants to Renewable Fuel Capital Investment companies 
and to other entities, as authorized by this part, under such 
terms as the Administrator may require, to provide additional 
operational assistance to smaller enterprises financed, or 
expected to be financed, by the companies.
H. R. 6—291 
‘‘(2) MATCHING
REQUIREMENT.—The Administrator may 
require, as a condition of any supplemental grant made under 
this subsection, that the company or entity receiving the grant 
provide from resources (in a cash or in kind), other then those 
provided by the Administrator, a matching contribution equal 
to the amount of the supplemental grant. 
‘‘(c) LIMITATION.—None of the assistance made available under 
this section may be used for any overhead or general and adminis-
trative expense of a Renewable Fuel Capital Investment company. 
‘‘SEC. 390. BANK PARTICIPATION. 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), any 
national bank, any member bank of the Federal Reserve System, 
and (to the extent permitted under applicable State law) any 
insured bank that is not a member of such system, may invest 
in any Renewable Fuel Capital Investment company, or in any 
entity established to invest solely in Renewable Fuel Capital Invest-
ment companies. 
‘‘(b) LIMITATION.—No bank described in subsection (a) may 
make investments described in such subsection that are greater 
than 5 percent of the capital and surplus of the bank. 
‘‘SEC. 391. FEDERAL FINANCING BANK. 
‘‘Notwithstanding section 318, the Federal Financing Bank may 
acquire a debenture issued by a Renewable Fuel Capital Investment 
company under this part. 
‘‘SEC. 392. REPORTING REQUIREMENT. 
‘‘Each Renewable Fuel Capital Investment company that 
participates in the program established under this part shall provide 
to the Administrator such information as the Administrator may 
require, including— 
‘‘(1) information related to the measurement criteria that 
the company proposed in its program application; and 
‘‘(2) in each case in which the company makes, under 
this part, an investment in, or a loan or a grant to, a business 
that is not primarily engaged in the research, development, 
manufacture, or bringing to market or renewable energy 
sources, a report on the nature, origin, and revenues of the 
business in which investments are made. 
‘‘SEC. 393. EXAMINATIONS. 
‘‘(a) IN GENERAL.—Each Renewable Fuel Capital Investment 
company that participates in the program established under this 
part shall be subject to examinations made at the direction of 
the Investment Division of the Administration in accordance with 
this section. 
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—Examinations 
under this section may be conducted with the assistance of a private 
sector entity that has both the qualifications and the expertise 
necessary to conduct such examinations. 
‘‘(c) COSTS.— 
‘‘(1) ASSESSMENT.— 
‘‘(A) IN GENERAL.—The Administrator may assess the 
cost of examinations under this section, including com-
pensation of the examiners, against the company examined.
H. R. 6—292 
‘‘(B) PAYMENT.—Any company against which the 
Administrator assesses costs under this paragraph shall 
pay such costs. 
‘‘(2) DEPOSIT OF FUNDS.—Funds collected under this section 
shall be deposited in the account for salaries and expenses 
of the Administration. 
‘‘SEC. 394. MISCELLANEOUS. 
‘‘To the extent such procedures are not inconsistent with the 
requirements of this part, the Administrator may take such action 
as set forth in sections 309, 311, 312, and 314 and an officer, 
director, employee, agent, or other participant in the management 
or conduct of the affairs of a Renewable Fuel Capital Investment 
company shall be subject to the requirements of such sections. 
‘‘SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS. 
‘‘Using the procedures for removing or suspending a director 
or an officer of a licensee set forth in section 313 (to the extent 
such procedures are not inconsistent with the requirements of this 
part), the Administrator may remove or suspend any director or 
officer of any Renewable Fuel Capital Investment company. 
‘‘SEC. 396. REGULATIONS. 
‘‘The Administrator may issue such regulations as the Adminis-
trator determines necessary to carry out the provisions of this 
part in accordance with its purposes. 
‘‘SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—Subject to the availability of appropriations, 
the Administrator is authorized to make $15,000,000 in operational 
assistance grants under section 389 for each of fiscal years 2008 
and 2009. 
‘‘(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds deposited 
under section 393(c)(2) are authorized to be appropriated only for 
the costs of examinations under section 393 and for the costs 
of other oversight activities with respect to the program established 
under this part. 
‘‘SEC. 398. TERMINATION. 
‘‘The program under this part shall terminate at the end of 
the second full fiscal year after the date that the Administrator 
establishes the program under this part.’’. 
SEC. 1208. STUDY AND REPORT. 
The Administrator of the Small Business Administration shall 
conduct a study of the Renewable Fuel Capital Investment Program 
under part C of title III of the Small Business Investment Act 
of 1958, as added by this Act. Not later than 3 years after the 
date of enactment of this Act, the Administrator shall complete 
the study under this section and submit to Congress a report 
regarding the results of the study. 
TITLE XIII—SMART GRID 
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELEC-
TRICITY GRID. 
It is the policy of the United States to support the moderniza-
tion of the Nation’s electricity transmission and distribution system
H. R. 6—293 
to maintain a reliable and secure electricity infrastructure that 
can meet future demand growth and to achieve each of the following, 
which together characterize a Smart Grid: 
(1) Increased use of digital information and controls tech-
nology to improve reliability, security, and efficiency of the 
electric grid. 
(2) Dynamic optimization of grid operations and resources, 
with full cyber-security. 
(3) Deployment and integration of distributed resources 
and generation, including renewable resources. 
(4) Development and incorporation of demand response, 
demand-side resources, and energy-efficiency resources. 
(5) Deployment of ‘‘smart’’ technologies (real-time, auto-
mated, interactive technologies that optimize the physical oper-
ation of appliances and consumer devices) for metering, commu-
nications concerning grid operations and status, and distribu-
tion automation. 
(6) Integration of ‘‘smart’’ appliances and consumer devices. 
(7) Deployment and integration of advanced electricity stor-
age and peak-shaving technologies, including plug-in electric 
and hybrid electric vehicles, and thermal-storage air condi-
tioning. 
(8) Provision to consumers of timely information and control 
options. 
(9) Development of standards for communication and inter-
operability of appliances and equipment connected to the elec-
tric grid, including the infrastructure serving the grid. 
(10) Identification and lowering of unreasonable or unneces-
sary barriers to adoption of smart grid technologies, practices, 
and services. 
SEC. 1302. SMART GRID SYSTEM REPORT. 
The Secretary, acting through the Assistant Secretary of the 
Office of Electricity Delivery and Energy Reliability (referred to 
in this section as the ‘‘OEDER’’) and through the Smart Grid 
Task Force established in section 1303, shall, after consulting with 
any interested individual or entity as appropriate, no later than 
1 year after enactment, and every 2 years thereafter, report to 
Congress concerning the status of smart grid deployments nation-
wide and any regulatory or government barriers to continued 
deployment. The report shall provide the current status and pros-
pects of smart grid development, including information on tech-
nology penetration, communications network capabilities, costs, and 
obstacles. It may include recommendations for State and Federal 
policies or actions helpful to facilitate the transition to a smart 
grid. To the extent appropriate, it should take a regional perspec-
tive. In preparing this report, the Secretary shall solicit advice 
and contributions from the Smart Grid Advisory Committee created 
in section 1303; from other involved Federal agencies including 
but not limited to the Federal Energy Regulatory Commission 
(‘‘Commission’’), the National Institute of Standards and Technology 
(‘‘Institute’’), and the Department of Homeland Security; and from 
other stakeholder groups not already represented on the Smart 
Grid Advisory Committee. 
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK 
FORCE. 
(a) SMART GRID ADVISORY COMMITTEE.—