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tion of project assets if necessary to pro-
tect the financial interests of the United 
States in the case of default; and 
‘‘(iv) provide such lien priority in 
project assets as necessary to protect the 
financial interests of the United States in 
the case of a default.’’. 
SEC. 182. PURPOSE. 
The purpose of sections 183 through 189 of this sub-
title is to promote the domestic development and deploy-
ment of clean energy technologies required for the 21st 
century through the establishment of a self-sustaining 
Clean Energy Deployment Administration that will pro-
vide for an attractive investment environment through 
partnership with and support of the private capital market 
in order to promote access to affordable financing for ac-
celerated and widespread deployment of— 
(1) clean energy technologies; 
(2) advanced or enabling energy infrastructure 
technologies; 
(3) energy efficiency technologies in residential, 
commercial, and industrial applications, including 
end-use efficiency in buildings; and 
(4) manufacturing technologies for any of the 
technologies or applications described in this section. 
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SEC. 183. DEFINITIONS. 
In this subtitle: 
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Clean Energy Deployment Adminis-
tration established by section 186. 
(2) ADVISORY COUNCIL.—The term ‘‘Advisory 
Council’’ means the Energy Technology Advisory 
Council of the Administration. 
(3) BREAKTHROUGH TECHNOLOGY.—The term 
‘‘breakthrough technology’’ means a clean energy 
technology that— 
(A) presents a significant opportunity to 
advance the goals developed under section 185, 
as assessed under the methodology established 
by the Advisory Council; but 
(B) has generally not been considered a 
commercially ready technology as a result of 
high perceived technology risk or other similar 
factors. 
(4) CLEAN ENERGY TECHNOLOGY.—The term 
‘‘clean energy technology’’ means a technology re-
lated to the production, use, transmission, storage, 
control, or conservation of energy— 
(A) that will contribute to a stabilization of 
atmospheric greenhouse gas concentrations 
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thorough reduction, avoidance, or sequestration 
of energy-related emissions and— 
(i) reduce the need for additional en-
ergy supplies by using existing energy sup-
plies with greater efficiency or by transmit-
ting, distributing, or transporting energy 
with greater effectiveness through the in-
frastructure of the United States; or 
(ii) diversify the sources of energy 
supply of the United States to strengthen 
energy security and to increase supplies 
with a favorable balance of environmental 
effects if the entire technology system is 
considered; and 
(B) for which, as determined by the Ad-
ministrator, insufficient commercial lending is 
available at affordable rates to allow for wide-
spread deployment. 
(5) COST.—The term ‘‘cost’’ has the meaning 
given the term in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a). 
(6) DIRECT LOAN.—The term ‘‘direct loan’’ has 
the meaning given the term in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
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(7) FUND.—The term ‘‘Fund’’ means the Clean 
Energy Investment Fund established by section 
184(a). 
(8) GREEN BONDS.—The term ‘‘Green Bonds’’ 
means bonds issued pursuant to section 184. 
(8) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ has the meaning given the term in section 
502 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a). 
(9) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ has the meaning given the term 
in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(11) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
(D) any other territory or possession of the 
United States. 
(12) TECHNOLOGY
RISK.—The term ‘‘tech-
nology risk’’ means the risks during construction or 
operation associated with the design, development, 
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and deployment of clean energy technologies (includ-
ing the cost, schedule, performance, reliability and 
maintenance, and accounting for the perceived risk), 
from the perspective of commercial lenders, that 
may be increased as a result of the absence of ade-
quate historical construction, operating, or perform-
ance data from commercial applications of the tech-
nology. 
SEC. 184. CLEAN ENERGY INVESTMENT FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a revolving fund, to be 
known as the ‘‘Clean Energy Investment Fund’’, con-
sisting of— 
(1) such amounts as are deposited in the Fund 
under this subtitle; and 
(2) such sums as may be appropriated to sup-
plement the Fund. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Fund such sums 
as are necessary to carry out this subtitle. 
(c) EXPENDITURES FROM FUND.— 
(1) IN GENERAL.—Amounts in the Fund shall 
be available to the Administrator of the Administra-
tion for obligation without fiscal year limitation, to 
remain available until expended. 
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(2) ADMINISTRATIVE EXPENSES.— 
(A) FEES.—Fees collected for administra-
tive expenses shall be available without limita-
tion to cover applicable expenses. 
(B) FUND.—To the extent that adminis-
trative expenses are not reimbursed through 
fees, an amount not to exceed 1.5 percent of 
the amounts in the Fund as of the beginning of 
each fiscal year shall be available to pay the ad-
ministrative expenses for the fiscal year nec-
essary to carry out this subtitle. 
(d) TRANSFERS OF AMOUNTS.— 
(1) IN GENERAL.—The amounts required to be 
transferred to the Fund under this section shall be 
transferred at least monthly from the general fund 
of the Treasury to the Fund on the basis of esti-
mates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall 
be made in amounts subsequently transferred to the 
extent prior estimates were in excess of or less than 
the amounts required to be transferred. 
(3) CASH FLOWS.—Cash flows associated with 
costs of the Fund described in section 502(5)(B) of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
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661a(5)(B)) shall be transferred to appropriate 
credit accounts. 
(e) GREEN BONDS.— 
(1) INITIAL
CAPITALIZATION.—The Secretary 
of the Treasury shall issue Green Bonds in the 
amount of $7,500,000,000 on the credit of the 
United States to acquire capital stock of the Admin-
istration. Stock certificates evidencing ownership in 
the Administration shall be issued by the Adminis-
tration to the Secretary of the Treasury, to the ex-
tent of payments made for the capital stock of the 
Administration. 
(2) DENOMINATIONS
AND
MATURITY.—Green 
Bonds shall be in such forms and denominations, 
and shall mature within such periods, as determined 
by the Secretary of the Treasury. 
(3) INTEREST.—Green Bonds shall bear inter-
est at a rate not less than the current average yield 
on outstanding market obligations of the United 
States of comparable maturity during the month 
preceding the issuance of the obligation as deter-
mined by the Secretary of the Treasury. 
(4) LAWFUL
INVESTMENTS.—Green Bonds 
shall be lawful investments, and may be accepted as 
security for all fiduciary, trust, and public funds, the 
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investment or deposit of which shall be under the 
authority or control of the United States or any offi-
cer or officers thereof. 
SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS. 
(a) GOALS.—Not later than 1 year after the date of 
enactment of this Act, the Secretary, after consultation 
with the Advisory Council, shall develop and publish for 
review and comment in the Federal Register recommended 
near-, medium-, and long-term goals (including numerical 
performance targets at appropriate intervals to measure 
progress toward those goals) for the deployment of clean 
energy technologies through the credit support programs 
established by section 187 to promote— 
(1) sufficient electric generating capacity using 
clean energy technologies to meet the energy needs 
of the United States; 
(2) clean energy technologies in vehicles and 
fuels that will substantially reduce the reliance of 
the United States on foreign sources of energy and 
insulate consumers from the volatility of world en-
ergy markets; 
(3) a domestic commercialization and manufac-
turing capacity that will establish the United States 
as a world leader in clean energy technologies across 
multiple sectors; 
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(4) installation of sufficient infrastructure to 
allow for the cost-effective deployment of clean en-
ergy technologies appropriate to each region of the 
United States; 
(5) the transformation of the building stock of 
the United States to zero net energy consumption; 
(6) the recovery, use, and prevention of waste 
energy; 
(7) domestic manufacturing of clean energy 
technologies on a scale that is sufficient to achieve 
price parity with conventional energy sources; 
(8) domestic production of commodities and 
materials (such as steel, chemicals, polymers, and 
cement) using clean energy technologies so that the 
United States will become a world leader in environ-
mentally sustainable production of the commodities 
and materials; 
(9) a robust, efficient, and interactive electricity 
transmission grid that will allow for the incorpora-
tion of clean energy technologies, distributed genera-
tion, and demand-response in each regional electric 
grid; 
(10) sufficient availability of financial products 
to allow owners and users of residential, retail, com-
mercial, and industrial buildings to make energy ef-
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ficiency and distributed generation technology in-
vestments with reasonable payback periods; 
(11) sufficient availability of financial services 
and support to small businesses developing and de-
ploying clean energy technologies through partner-
ships with private entities that have relevant credit 
expertise; and 
(12) such other goals as the Secretary, in con-
sultation with the Advisory Council, determines to be 
consistent with the purpose stated in section 182. 
(b) REVISIONS.—The Secretary shall revise the goals 
established under subsection (a), from time to time as ap-
propriate, to account for advances in technology and 
changes in energy policy. 
SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION. 
(a) ESTABLISHMENT.— 
(1) ESTABLISHMENT OF CORPORATION.—There 
is established a corporation to be known as the 
Clean Energy Deployment Administration that shall 
be wholly owned by the United States. 
(2) INDEPENDENT CORPORATION.—The Admin-
istration shall be an independent corporation. Nei-
ther the Administration nor any of its functions, 
powers, or duties shall be transferred to or consoli-
dated with any other department, agency, or cor-
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poration of the Government unless the Congress pro-
vides otherwise. 
(3) CHARTER.—The Administration shall be 
chartered for 20 years from the date of enactment 
of this section. 
(4) STATUS.— 
(A) INSPECTOR GENERAL.—Section 12 of 
the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(i) in paragraph (1), by inserting ‘‘the 
Administrator of the Clean Energy Deploy-
ment Administration;’’ after ‘‘Export-Im-
port Bank;’’; and 
(ii) in paragraph (2), by inserting 
‘‘the Clean Energy Deployment Adminis-
tration,’’ after ‘‘Export-Import Bank,’’. 
(3) OFFICES.— 
(A) PRINCIPAL OFFICE.—The Administra-
tion shall— 
(i) maintain the principal office of the 
Administration in the national capital re-
gion; and 
(ii) for purposes of venue in civil ac-
tions, be considered to be a resident of the 
District of Columbia. 
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(B) OTHER OFFICES.—The Administration 
may establish other offices in such other places 
as the Administration considers necessary or 
appropriate for the conduct of the business of 
the Administration. 
(b) ADMINISTRATOR.— 
(1) IN
GENERAL.—The Administrator of the 
Administration shall be— 
(A) appointed by the President, with the 
advice and consent of the Senate, for a 5-year 
term; and 
(B) compensated at the prevailing rate for 
compensation for similar positions in industry. 
(2) DUTIES.—The Administrator of the Admin-
istration shall— 
(A) serve as the Chief Executive Officer of 
the Administration and Chairman of the Board; 
(B) ensure that— 
(i) the Administration operates in a 
safe and sound manner, including mainte-
nance of adequate capital and internal con-
trols (consistent with section 404 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 
7262)); 
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(ii) the operations and activities of the 
Administration foster liquid, efficient, com-
petitive, and resilient energy and energy ef-
ficiency finance markets; 
(iii) the Administration carries out the 
purpose stated in section 182 only through 
activities that are authorized under and 
consistent with sections 182 through 189; 
and 
(iv) the activities of the Administra-
tion and the manner in which the Adminis-
tration is operated are consistent with the 
public interest; 
(C) develop policies and procedures for the 
Administration that will— 
(i) promote a self-sustaining portfolio 
of investments that will maximize the value 
of investments to effectively promote clean 
energy technologies; 
(ii) promote transparency and open-
ness in Administration operations; 
(iii) afford the Administration with 
sufficient flexibility to meet the purpose 
stated in section 182; and 
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(iv) provide for the efficient proc-
essing of applications; and 
(D) with the concurrence of the Board, set 
expected loss reserves for the support provided 
by the Administration consistent with section 
187(c). 
(c) BOARD OF DIRECTORS.— 
(1) IN GENERAL.—The Board of Directors of 
the Administration shall consist of— 
(A) the Secretary or the designee of the 
Secretary, who shall serve as an ex-officio mem-
ber of the Board of Directors; 
(B) the Secretary of the Treasury or the 
designee of the Secretary, who shall serve as an 
ex-officio member of the Board of Directors; 
(C) the Secretary of the Interior or the 
designee of the Secretary, who shall serve as an 
ex-officio member of the Board of Directors; 
(D) the Secretary of Agriculture or the 
designee of the Secretary, who shall serve as an 
ex officio member of the Board of Directors; 
(E) the Administrator of the Administra-
tion, who shall serve as the Chairman of the 
Board of Directors; and 
(F) 4 additional members who shall— 
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(i) be appointed by the President, 
with the advice and consent of the Senate, 
for staggered 5-year terms; and 
(ii) have experience in banking, finan-
cial services, technology assessment, energy 
regulation, or risk management, including 
individuals with substantial experience in 
the development of energy projects, the 
electricity generation sector, the transpor-
tation sector, the manufacturing sector, 
and the energy efficiency sector. 
(2) DUTIES.—The Board of Directors shall— 
(A) oversee the operations of the Adminis-
tration and ensure industry best practices are 
followed in all financial transactions involving 
the Administration; 
(B) consult with the Administrator of the 
Administration on the general policies and pro-
cedures of the Administration to ensure the in-
terests of the taxpayers are protected; 
(C) ensure the portfolio of investments are 
consistent with purpose stated in section 182 
and with the long-term financial stability of the 
Administration; 
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(D) ensure that the operations and activi-
ties of the Administration are consistent with 
the development of a robust private sector that 
can provide commercial loans or financing prod-
ucts; and 
(E) not serve on a full-time basis, except 
that the Board of Directors shall meet at least 
quarterly to review, as appropriate, applications 
for credit support and set policies and proce-
dures as necessary. 
(3) REMOVAL.—An appointed member of the 
Board of Directors may be removed from office by 
the President for good cause. 
(4) VACANCIES.—An appointed seat on the 
Board of Directors that becomes vacant shall be 
filled by appointment by the President, but only for 
the unexpired portion of the term of the vacating 
member. 
(5) COMPENSATION
OF
MEMBERS.—An ap-
pointed member of the Board of Directors shall be 
compensated at the prevailing rate for compensation 
for similar positions in industry. 
(d) ENERGY TECHNOLOGY ADVISORY COUNCIL.— 
(1) IN
GENERAL.—The Administration shall 
have an Energy Technology Advisory Council con-
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sisting of 8 members selected by the Board of Direc-
tors of the Administration. 
(2) QUALIFICATIONS.—The members of the Ad-
visory Council shall— 
(A) have clean energy project development, 
clean energy finance, commercial, and/or rel-
evant scientific expertise; and 
(B) include representatives of— 
(i) the academic community; 
(ii) the private research community; 
(iii) National Laboratories; 
(iv) the technology or project develop-
ment community; and 
(v) the commercial energy financing 
and operations sector. 
(3) DUTIES.—The Advisory Council shall— 
(A) develop and publish for comment in 
the Federal Register a methodology for assess-
ment of clean energy technologies that will 
allow the Administration to evaluate projects 
based on the progress likely to be achieved per- 
dollar invested in maximizing the attributes of 
the definition of clean energy technology, taking 
into account the extent to which support for a 
clean energy technology is likely to accrue sub-
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sequent benefits that are attributable to a com-
mercial scale deployment taking place earlier 
than that which otherwise would have occurred 
without the support; and 
(B) advise on the technological approaches 
that should be supported by the Administration 
to meet the technology deployment goals estab-
lished by the Secretary pursuant to section 185. 
(4) TERM.— 
(A) IN GENERAL.—Members of the Advi-
sory Council shall have 5-year staggered terms, 
as determined by the Administrator of the Ad-
ministration. 
(B) REAPPOINTMENT.—A member of the 
Advisory Council may be reappointed. 
(5) COMPENSATION.—A member of the Advi-
sory Council, who is not otherwise compensated as 
a Federal employee, shall be compensated at a rate 
equal to the daily equivalent of the annual rate of 
basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code, for each day (including travel time) 
during which the member is engaged in the perform-
ance of the duties of the Advisory Council. 
(e) STAFF.— 
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(1) IN
GENERAL.—The Administrator of the 
Administration, in consultation with the Board of 
Directors, may— 
(A) appoint and terminate such officers, 
attorneys, employees, and agents as are nec-
essary to carry out this subtitle; and 
(B) vest those personnel with such powers 
and duties as the Administrator of the Adminis-
tration may determine. 
(f) CONFLICTS OF INTEREST.—No director, officer, 
attorney, agent, or employee of the Administration shall 
in any manner, directly or indirectly, participate in the 
deliberation upon, or the determination of, any question 
affecting such individual’s personal interests, or the inter-
ests of any corporation, partnership, or association in 
which such individual is directly or indirectly personally 
interested. 
(g) SUNSET.— 
(1) EXPIRATION OF CHARTER.—The Adminis-
tration shall continue to exercise its functions until 
all obligations and commitments of the Administra-
tion are discharged, even after its charter has ex-
pired. 
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(2) PRIOR OBLIGATIONS.—No provisions of this 
subsection shall be construed as preventing the Ad-
ministration from— 
(A) undertaking obligations prior to the 
date of the expiration of its charter which ma-
ture subsequent to such date; 
(B) assuming, prior to the date of the ex-
piration of its charter, liability as guarantor, 
endorser, or acceptor of obligations which ma-
ture subsequent to such date; or 
(C) continuing as a corporation and exer-
cising any of its functions subsequent to the 
date of the expiration of its charter for pur-
poses of orderly liquidation, including the ad-
ministration of its assets and the collection of 
any obligations held by the Administration. 
SEC. 187. DIRECT SUPPORT. 
(a) IN GENERAL.—The Administration may issue di-
rect loans, letters of credit, and loan guarantees to deploy 
clean energy technologies if the Administrator of the Ad-
ministration has determined that deployment of the tech-
nologies would benefit or be accelerated by the support. 
(b) ELIGIBILITY CRITERIA.—In carrying out this sec-
tion and awarding credit support to projects, the Adminis-
trator of the Administration shall account for— 
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(1) how the technology rates based on an eval-
uation methodology established by the Advisory 
Council; 
(2) how the project fits with the goals estab-
lished under section 185; and 
(3) the potential for the applicant to success-
fully complete the project. 
(c) RISK.— 
(1) EXPECTED LOAN LOSS RESERVE.—The Ad-
ministrator of the Administration shall establish an 
expected loan loss reserve to account for estimated 
losses attributable to activities under this section 
that is consistent with the purposes of— 
(A) developing breakthrough technologies 
to the point at which technology risk is largely 
mitigated; 
(B) achieving widespread deployment and 
advancing the commercial viability of clean en-
ergy technologies; and 
(C) advancing the goals established under 
section 185. 
(2) INITIAL EXPECTED LOAN LOSS RESERVE.— 
Until such time as the Administrator of the Admin-
istration determines sufficient data exist to establish 
an expected loan loss reserve that is appropriate, the 
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Administrator of the Administration shall consider 
establishing an initial rate of 10 percent for the 
portfolio of investments under this subtitle. 
(3) PORTFOLIO INVESTMENT APPROACH.—The 
Administration shall— 
(A) use a portfolio investment approach to 
mitigate risk and diversify investments across 
technologies and ensure that no particular tech-
nology is provided more than 30 percent of the 
financial support available; 
(B) to the maximum extent practicable and 
consistent with long-term self-sufficiency, weigh 
the portfolio of investments in projects to ad-
vance the goals established under section 185; 
(C) consistent with the expected loan loss 
reserve established under this subsection, the 
purpose stated in section 182, and section 
186(b)(2)(B), provide the maximum practicable 
percentage of support to promote breakthrough 
technologies; and 
(D) give the highest priority to investments 
that promote technologies that will achieve the 
maximum greenhouse gas emission reductions 
within a reasonable period of time per dollar in-
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vested and the earliest reductions in greenhouse 
gas emissions. 
(4) LOSS RATE REVIEW.— 
(A) IN GENERAL.—The Board of Directors 
shall review on an annual basis the loss rates 
of the portfolio to determine the adequacy of 
the reserves. 
(B) REPORT.—Not later than 90 days 
after the date of the initiation of the review, the 
Administrator of the Administration shall sub-
mit to the Committee on Energy and Natural 
Resources and the Committee on Finance of the 
Senate, and the Committee on Energy and 
Commerce and the Committee on Ways and 
Means of the House of Representatives a report 
describing the results of the review and any rec-
ommended policy changes. 
(5) FEDERAL COST SHARE.—Direct loans, let-
ters of credit and loan guarantees by the Adminis-
tration shall not exceed an amount equal to 80 per-
cent of the project cost of the facility that is the 
subject of the loan, letter of credit or loan guar-
antee, as estimated at the time at which the loan, 
letter of credit or loan guarantee is issued. 
(d) APPLICATION REVIEW.— 
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(1) IN
GENERAL.—To the maximum extent 
practicable and consistent with sound business prac-
tices, the Administration shall seek to consolidate re-
views of applications for credit support under this 
subtitle such that final decisions on applications can 
generally be issued not later than 180 days after the 
date of submission of a completed application. 
(2) ENVIRONMENTAL REVIEW.—In carrying out 
this subtitle, the Administration shall, to the max-
imum extent practicable— 
(A) avoid duplicating efforts that have al-
ready been undertaken by other agencies (in-
cluding State agencies acting under Federal 
programs); and 
(B) with the advice of the Council on Envi-
ronmental Quality and any other applicable 
agencies, use the administrative records of simi-
lar reviews conducted throughout the executive 
branch to develop the most expeditious review 
process practicable. 
(e) WAGE RATE REQUIREMENTS.— 
(1) IN GENERAL.—No credit support shall be 
issued under this section unless the borrower has 
provided to the Administrator of the Administration 
reasonable assurances that all laborers and mechan-
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ics employed by contractors and subcontractors in 
the performance of construction work financed in 
whole or in part by the Administration will be paid 
wages at rates not less than those prevailing on 
projects of a character similar to the contract work 
in the civil subdivision of the State in which the con-
tract work is to be performed as determined by the 
Secretary of Labor in accordance with subchapter 
IV of chapter 31 of part A of subtitle II of title 40, 
United States Code. 
(2) LABOR STANDARDS.—With respect to the 
labor standards specified in this subsection, the Sec-
retary of Labor shall have the authority and func-
tions set forth in Reorganization Plan Numbered 14 
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
3145 of title 40, United States Code. 
(f) LIMITATIONS.—(1) The Administration shall not 
provide direct support as defined under this section or in-
direct support as defined under section 188 to an indi-
vidual clean energy technology project that obtained a loan 
guarantee under title XVII of the Energy Policy Act of 
2005. 
(2) No direct or indirect support provided by the Ad-
ministration may be used to pay any part of the cost of 
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an obligation or a loan guarantee under title XVII of the 
Energy Policy Act of 2005. 
SEC. 188. INDIRECT SUPPORT. 
(a) IN GENERAL.—For the purpose of enhancing the 
availability of private financing for clean energy tech-
nology deployment, the Administration may— 
(1) provide credit support to portfolios of tax-
able debt obligations originated by state, local, and 
private sector entities that enable owners and users 
of buildings and industrial facilities to— 
(A) significantly increase the energy effi-
ciency of such buildings or facilities; or 
(B) install systems that individually gen-
erate electricity from renewable energy re-
sources and have a capacity of no more than 2 
megawatts; 
(2) facilitate financing transactions in tax eq-
uity markets and long-term purchasing of clean en-
ergy by state, local, and non-governmental not-for- 
profit entities, to the degree and extent that the Ad-
ministration determines such financing activity is 
appropriate and consistent with carrying out the 
purposes described in Section 182 of this Act; and 
(3) provide credit support to portfolios of tax-
able debt obligations originated by state, local, and 
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private sector entities that enable the deployment of 
energy storage applications for electric drive vehi-
cles, stationary applications, and electricity trans-
mission and distribution. 
(b) DEFINITIONS.—For purposes of the section: 
(1) CREDIT SUPPORT.—The term ‘‘credit sup-
port’’ means— 
(A) direct loans, letters of credit, loan 
guarantees, and insurance products; and 
(B) the purchase or commitment to pur-
chase, or the sale or commitment to sell, debt 
instruments (including subordinated securities). 
(2) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ shall have the 
meaning given that term in section 610 of the Public 
Utility Regulatory Policies Act of 1978 (as added by 
section 101 of this Act). 
(c) TRANSPARENCY.—The Administration shall seek 
to foster through its credit support activities— 
(1) the development and consistent application 
of standard contractual terms, transparent under-
writing standards and consistent measurement and 
verification protocols, as applicable; and 
(2) the creation of performance data that pro-
motes effective underwriting and risk management 
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to support lending markets and stimulate the devel-
opment of private investment markets. 
(d) EXEMPT SECURITIES.—All securities insured or 
guaranteed by the Administration shall, to the same ex-
tent as securities that are direct obligations of or obliga-
tions guaranteed as to the principal or interest by the 
United States, be considered to be exempt securities with-
in the meaning of the laws administered by the Securities 
and Exchange Commission. 
SEC. 189. FEDERAL CREDIT AUTHORITY. 
(a) PAYMENTS OF LIABILITIES.— 
(1) IN GENERAL.—Any payment made to dis-
charge liabilities arising from agreements under this 
subtitle shall be paid exclusively out of the Fund or 
the associated credit account, as appropriate. 
(2) SECURITY.—Subject to paragraph (1), the 
full faith and credit of the United States is pledged 
to the payment of all obligations entered into by the 
Administration pursuant to this subtitle. 
(b) FEES.— 
(1) IN
GENERAL.—Consistent with achieving 
the purpose stated in section 182, the Administrator 
of the Administration shall charge fees or collect 
compensation generally in accordance with commer-
cial rates. 
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(2) AVAILABILITY OF FEES.—All fees collected 
by the Administration may be retained by the Ad-
ministration and placed in the Fund and may re-
main available to the Administration, without fur-
ther appropriation or fiscal year limitation, for use 
in carrying out the purpose stated in section 182. 
(3) BREAKTHROUGH TECHNOLOGIES.—The Ad-
ministration shall charge the minimum amount in 
fees or compensation practicable for breakthrough 
technologies, consistent with the long-term viability 
of the Administration, unless the Administration 
first determines that a higher charge will not impede 
the development of the technology. 
(4) ALTERNATIVE FEE ARRANGEMENTS.—The 
Administration may use such alternative arrange-
ments (such as profit participation, contingent fees, 
and other valuable contingent interests) as the Ad-
ministration considers appropriate to compensate the 
Administration for the expenses of the Administra-
tion and the risk inherent in the support of the Ad-
ministration. 
(c) COST TRANSFER AUTHORITY.—Amounts col-
lected by the Administration for the cost of a loan or loan 
guarantee shall be transferred by the Administration to 
the respective credit accounts. 
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SEC. 190. GENERAL PROVISIONS. 
(a) IMMUNITY FROM IMPAIRMENT, LIMITATION, OR 
RESTRICTION.— 
(1) IN GENERAL.—All rights and remedies of 
the Administration (including any rights and rem-
edies of the Administration on, under, or with re-
spect to any mortgage or any obligation secured by 
a mortgage) shall be immune from impairment, limi-
tation, or restriction by or under— 
(A) any law (other than a law enacted by 
Congress expressly in limitation of this para-
graph) that becomes effective after the acquisi-
tion by the Administration of the subject or 
property on, under, or with respect to which the 
right or remedy arises or exists or would so 
arise or exist in the absence of the law; or 
(B) any administrative or other action that 
becomes effective after the acquisition. 
(2) STATE LAW.—The Administrator of the Ad-
ministration may conduct the business of the Ad-
ministration without regard to any qualification or 
law of any State relating to incorporation. 
(b) USE OF OTHER AGENCIES.—With the consent of 
a department, establishment, or instrumentality (including 
any field office), the Administration may— 
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(1) use and act through any department, estab-
lishment, or instrumentality; and 
(2) use, and pay compensation for, information, 
services, facilities, and personnel of the department, 
establishment, or instrumentality. 
(c) FINANCIAL MATTERS.— 
(1) INVESTMENTS.—Funds of the Administra-
tion may be invested in such investments as the 
Board of Directors may prescribe. Earnings from 
such funds, other than fees collected under section 
189, may be spent by the Administration only to 
such extent or in such amounts as are provided in 
advance by appropriation Acts. 
(2) FISCAL
AGENTS.—Any Federal Reserve 
bank or any bank as to which at the time of the des-
ignation of the bank by the Administrator of the Ad-
ministration there is outstanding a designation by 
the Secretary of the Treasury as a general or other 
depository of public money, may be designated by 
the Administrator of the Administration as a deposi-
tary or custodian or as a fiscal or other agent of the 
Administration. 
(d) PERIODIC REPORTS.—Not later than 1 year after 
commencement of operation of the Administration and at 
least biannually thereafter, the Administrator of the Ad-
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ministration shall submit to the Committee on Energy and 
Natural Resources and the Committee on Finance of the 
Senate and the Committee on Energy and Commerce and 
the Committee on Ways and Means of the House of Rep-
resentatives a report that includes a description of— 
(1) the technologies supported by activities of 
the Administration and how the activities advance 
the purpose stated in section 182; and 
(2) the performance of the Administration on 
meeting the goals established under section 185. 
(g) AUDITS BY THE COMPTROLLER GENERAL.— 
(1) IN GENERAL.—The programs, activities, re-
ceipts, expenditures, and financial transactions of 
the Administration shall be subject to audit by the 
Comptroller General of the United States under 
such rules and regulations as may be prescribed by 
the Comptroller General. 
(2) ACCESS.—The representatives of the Gov-
ernment Accountability Office shall— 
(A) have access to the personnel and to all 
books, accounts, documents, records (including 
electronic records), reports, files, and all other 
papers, automated data, things, or property be-
longing to, under the control of, or in use by 
the Administration, or any agent, representa-
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tive, attorney, advisor, or consultant retained by 
the Administration, and necessary to facilitate 
the audit; 
(B) be afforded full facilities for verifying 
transactions with the balances or securities held 
by depositories, fiscal agents, and custodians; 
(C) be authorized to obtain and duplicate 
any such books, accounts, documents, records, 
working papers, automated data and files, or 
other information relevant to the audit without 
cost to the Comptroller General; and 
(D) have the right of access of the Comp-
troller General to such information pursuant to 
section 716(c) of title 31, United States Code. 
(3) ASSISTANCE AND COST.— 
(A) IN GENERAL.—For the purpose of con-
ducting an audit under this subsection, the 
Comptroller General may, in the discretion of 
the Comptroller General, employ by contract, 
without regard to section 3709 of the Revised 
Statutes (41 U.S.C. 5), professional services of 
firms and organizations of certified public ac-
countants for temporary periods or for special 
purposes. 
(B) REIMBURSEMENT.— 
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(i) IN GENERAL.—On the request of 
the Comptroller General, the Administra-
tion shall reimburse the Government Ac-
countability Office for the full cost of any 
audit conducted by the Comptroller Gen-
eral under this subsection. 
(ii) 
CREDITING.—Such 
reimburse-
ments shall— 
(I) be credited to the appropria-
tion account entitled ‘‘Salaries and 
Expenses, Government Accountability 
Office’’ at the time at which the pay-
ment is received; and 
(II) remain available until ex-
pended. 
(h) ANNUAL INDEPENDENT AUDITS.— 
(1) IN
GENERAL.—The Administrator of the 
Administration shall— 
(A) have an annual independent audit 
made of the financial statements of the Admin-
istration by an independent public accountant 
in accordance with generally accepted auditing 
standards; and 
(B) submit to the Secretary and to the 
Committee on Energy and Natural Resources 
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and the Committee on Finance of the Senate 
and the Committee on Energy and Commerce 
and the Committee on Ways and Means of the 
House the results of the audit. 
(2) CONTENT.—In conducting an audit under 
this subsection, the independent public accountant 
shall determine and report on whether the financial 
statements of the Administration— 
(A) are presented fairly in accordance with 
generally accepted accounting principles; and 
(B) comply with any disclosure require-
ments imposed under this subtitle. 
(i) FINANCIAL REPORTS.— 
(1) IN
GENERAL.—The Administrator of the 
Administration shall submit to the Secretary and to 
the Committee on Energy and Natural Resources 
and the Committee on Finance of the Senate and 
the Committee on Energy and Commerce and the 
Committee on Ways and Means of the House annual 
and quarterly reports of the financial condition and 
operations of the Administration, which shall be in 
such form, contain such information, and be sub-
mitted on such dates as the Secretary shall require. 
(2) CONTENTS
OF
ANNUAL
REPORTS.—Each 
annual report shall include— 
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(A) financial statements prepared in ac-
cordance with generally accepted accounting 
principles; 
(B) any supplemental information or alter-
native presentation that the Secretary may re-
quire; and 
(C) an assessment (as of the end of the 
most recent fiscal year of the Administration), 
signed by the chief executive officer and chief 
accounting or financial officer of the Adminis-
tration, of— 
(i) the effectiveness of the internal 
control structure and procedures of the 
Administration; and 
(ii) the compliance of the Administra-
tion with applicable safety and soundness 
laws. 
(3) SPECIAL REPORTS.—The Secretary may re-
quire the Administrator of the Administration to 
submit other reports on the condition (including fi-
nancial condition), management, activities, or oper-
ations of the Administration, as the Secretary con-
siders appropriate. 
(4) ACCURACY.—Each report of financial condi-
tion shall contain a declaration by the Administrator 
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of the Administration or any other officer designated 
by the Board of Directors of the Administration to 
make the declaration, that the report is true and 
correct to the best of the knowledge and belief of the 
officer. 
(5) AVAILABILITY
OF
REPORTS.—Reports re-
quired under this section shall be published and 
made publicly available as soon as is practicable 
after receipt by the Secretary. 
(j) SPENDING SAFEGUARDS AND REPORTING.— 
(1) IN GENERAL.—The Administrator— 
(A) shall require any entity receiving fi-
nancing support from the Administration to re-
port quarterly, in a format specified by the Ad-
ministrator, on such entity’s use of such sup-
port and its progress fulfilling the objectives for 
which such support was granted, and the Ad-
ministrator shall make these reports available 
to the public; 
(B) may establish additional reporting and 
information requirements for any recipient of fi-
nancing support from the Administration; 
(C) shall establish appropriate mechanisms 
to ensure appropriate use and compliance with 
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all terms of any financing support from the Ad-
ministration; 
(D) shall create and maintain a fully 
searchable database, accessible on the Internet 
(or successor protocol) at no cost to the public, 
that contains at least— 
(i) a list of each entity that has ap-
plied for financing support; 
(ii) a description of each application; 
(iii) the status of each such applica-
tion; 
(iv) the name of each entity receiving 
financing support; 
(v) the purpose for which such entity 
is receiving such financing support; 
(vi) each quarterly report submitted 
by the entity pursuant to this section; and 
(vii) such other information sufficient 
to allow the public to understand and mon-
itor the financial support provided by the 
Administration; 
(E) shall make all financing transactions 
available for public inspection, including formal 
annual reviews by both a private auditor and 
the Comptroller General; and 
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(F) shall at all times be available to receive 
public comment in writing on the activities of 
the Administration. 
(2) PROTECTION OF CONFIDENTIAL BUSINESS 
INFORMATION.—To the extent necessary and appro-
priate, the Administrator may redact any informa-
tion regarding applicants and borrowers to protect 
confidential business information. 
SEC. 191. CONFORMING AMENDMENTS. 
(a) TAX EXEMPT STATUS.—Subsection (l) of section 
501 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following: 
‘‘(4) The Clean Energy Deployment Adminis-
tration established under section 186 of the Amer-
ican Clean Energy and Security Act of 2009.’’. 
(b) WHOLLY
OWNED
GOVERNMENT
CORPORA-
TION.—Paragraph (3) of section 9101 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(S) the Clean Energy Deployment Admin-
istration.’’. 
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Subtitle J—Miscellaneous 
SEC. 195. INCREASED HYDROELECTRIC GENERATION AT 
EXISTING FEDERAL FACILITIES. 
(a) IN GENERAL.—The Secretary of the Interior, the 
Secretary of Energy, and the Secretary of the Army shall 
jointly update the study of the potential for increasing 
electric power production capability at federally owned or 
operated water regulation, storage, and conveyance facili-
ties required in section 1834 of the Energy Policy Act of 
2005. 
(b) CONTENT.—The update under this section shall 
include identification and description in detail of each fa-
cility that is capable, with or without modification, of pro-
ducing additional hydroelectric power, including esti-
mation of the existing potential for the facility to generate 
hydroelectric power. 
(c) REPORT.—The Secretaries shall submit to the 
Committees on Energy and Commerce, Natural Re-
sources, and Transportation and Infrastructure of the 
House of Representatives and the Committee on Energy 
and Natural Resources of the Senate a report on the find-
ings, conclusions, and recommendations of the update of 
the study under this section by not later than 12 months 
after the date of enactment of this Act. The report shall 
include each of the following: 
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(1) The identifications, descriptions, and esti-
mations referred to in subsection (b). 
(2) A description of activities currently con-
ducted or considered, or that could be considered, to 
produce additional hydroelectric power from each 
identified facility. 
(3) A summary of prior actions taken by the 
Secretaries to produce additional hydroelectric power 
from each identified facility. 
(4) The costs to install, upgrade, or modify 
equipment or take other actions to produce addi-
tional hydroelectric power from each identified facil-
ity, and the level of Federal power customer involve-
ment in the determination of such costs. 
(5) The benefits that would be achieved by such 
installation, upgrade, modification, or other action, 
including quantified estimates of any additional en-
ergy or capacity from each facility identified under 
subsection (b). 
(6) A description of actions that are planned, 
underway, or might reasonably be considered to in-
crease hydroelectric power production by replacing 
turbine runners, by performing generator upgrades 
or rewinds, or by construction of pumped storage fa-
cilities. 
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(7) The impact of increased hydroelectric power 
production on irrigation, water supply, fish, wildlife, 
Indian tribes, river health, water quality, navigation, 
recreation, fishing, and flood control. 
(8) Any additional recommendations to increase 
hydroelectric power production from, and reduce 
costs and improve efficiency at, federally owned or 
operated water regulation, storage, and conveyance 
facilities. 
SEC. 196. CLEAN TECHNOLOGY BUSINESS COMPETITION 
GRANT PROGRAM. 
(a) IN GENERAL.—The Secretary of Energy is au-
thorized to provide grants to organizations to conduct 
business competitions that provide incentives, training, 
and mentorship to entrepreneurs, including minority- 
owned and woman-owned, and early stage start-up compa-
nies throughout the United States to meet high priority 
economic, environmental, and energy security goals in 
areas to include energy efficiency, renewable energy, air 
quality, water quality and conservation, transportation, 
smart grid, green building, and waste management. Such 
competitions shall have the purpose of accelerating the de-
velopment and deployment of clean technology businesses 
and green jobs; stimulating green economic development; 
providing business training and mentoring to early stage 
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clean technology companies; and strengthening the com-
petitiveness of United States clean technology industry in 
world trade markets. Priority shall be given to business 
competitions that are private sector led, encourage re-
gional and interregional cooperation, and can demonstrate 
market-driven practices and show the creation of cost-ef-
fective green jobs through an annual publication of com-
petition activities and directory of companies. 
(b) ELIGIBILITY.—An organization eligible for a 
grant under subsection (a) is— 
(1) any organization described in section 
501(c)(3) of the Internal Revenue Code of 1986 and 
exempt from tax under section 501(a) of such Code; 
and 
(2) any sponsored entity of an organization de-
scribed in paragraph (1) that is operated as a non-
profit entity. 
(c) PRIORITY.—In making grants under this section, 
the Secretary shall give priority to those organizations 
that can demonstrate broad funding support from private 
and other non-Federal funding sources to leverage Federal 
investment. 
(d) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this section, there are authorized 
to be appropriated $20,000,000. 
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SEC. 197. NATIONAL BIOENERGY PARTNERSHIP. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a National Bioenergy Partnership to provide co-
ordination among programs of State governments, the 
Federal Government, and the private sector that support 
the institutional and physical infrastructure necessary to 
promote the deployment of sustainable biomass fuels and 
bioenergy technologies for the United States. 
(b) PROGRAM.—The National Bioenergy Partnership 
shall consist of five regions, to be administered by the 
CONEG Policy Research Center, the Council of Great 
Lakes Governors, the Southern States Energy Board, the 
Western Governors Association, and the Pacific Regional 
Biomass Energy Partnership led by the Washington State 
University Energy Program. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for each of fiscal years 
2010 through 2014 to carry out this section— 
(1) $5,000,000, to be allocated among the 5 re-
gions described in subsection (b) on the basis of the 
number of States in each region, for distribution 
among the member States of that region based on 
procedures developed by the member States of the 
region; and 
(2) $2,500,000, to be allocated equally among 
the 5 regions described in subsection (b) for region- 
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wide activities, including technical assistance and re-
gional studies and coordination. 
SEC. 198. OFFICE OF CONSUMER ADVOCACY. 
Section 319 of the Federal Power Act is amended to 
read as follows: 
‘‘SEC. 319. OFFICE OF CONSUMER ADVOCACY. 
‘‘(a) OFFICE.— 
‘‘(1) ESTABLISHMENT.—There is established 
within the Commission an Office of Consumer Advo-
cacy to serve as an advocate for the public interest. 
The Office of Administrative Litigation within the 
Commission shall be incorporated into the Office of 
Consumer Advocacy. 
‘‘(2) DIRECTOR.—The Office shall be headed by 
a Director to be appointed by the President by and 
with the advice and consent of the Senate from 
among individuals who are licensed attorneys admit-
ted to the Bar of any State or of the District of Co-
lumbia and who have experience in public utility pro-
ceedings. 
‘‘(3) DUTIES.—The Office may— 
‘‘(A) represent the interests of energy cus-
tomers— 
‘‘(i) on matters before the Commission 
concerning rates or service of public utili-
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ties and natural gas companies under the 
jurisdiction of the Commission; 
‘‘(ii) as amicus curiae, in the review in 
the courts of the United States of rulings 
by the Commission in such matters; and 
‘‘(iii) as amicus, in hearings and pro-
ceedings in other Federal regulatory agen-
cies and commissions related to such mat-
ters; 
‘‘(B) monitor and review energy customer 
complaints and grievances on matters con-
cerning rates or service of public utilities and 
natural gas companies under the jurisdiction of 
the Commission; 
‘‘(C) investigate independently, or within 
the context of formal proceedings, the services 
provided by, the rates charged by, and the valu-
ation of the properties of, public utilities and 
natural gas companies under the jurisdiction of 
the Commission; 
‘‘(D) develop means, such as public dis-
semination of information, consultative services, 
and technical assistance, to ensure, to the max-
imum extent practicable, that the interests of 
energy consumers are adequately represented in 
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the course of any hearing or proceeding de-
scribed in subparagraph (A); 
‘‘(E) collect data concerning rates or serv-
ice of public utilities and natural gas companies 
under the jurisdiction of the Commission; and 
‘‘(F) prepare and issue reports and rec-
ommendations. 
‘‘(4) COMPENSATION AND POWERS.—The Di-
rector shall be compensated at Level IV of the Exec-
utive Schedule. The Director may— 
‘‘(A) employ not more than 25 full-time 
professional employees at appropriate levels in 
the GS Scale and such additional support per-
sonnel as required; and 
‘‘(B) procure temporary and intermittent 
services as needed. 
‘‘(5) INFORMATION
FROM
OTHER
FEDERAL 
AGENCIES.—The Director may request, from any de-
partment, agency, or instrumentality of the United 
States such information as he deems necessary to 
carry out his functions under this section. Upon 
such request, the head of the department, agency, or 
instrumentality concerned shall, to the extent prac-
ticable and authorized by law, provide such informa-
tion to the Office. 
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‘‘(b) 
CONSUMER
ADVOCACY
ADVISORY
COM-
MITTEE.— 
‘‘(1) ESTABLISHMENT.—The Director shall es-
tablish an advisory committee to be known as Con-
sumer Advocacy Advisory Committee (in this section 
referred to as the ‘Advisory Committee’) to review 
rates, services, and disputes and to make rec-
ommendations to the Director. 
‘‘(2) COMPOSITION.—The Director shall ap-
point 5 members to the Advisory Committee includ-
ing— 
‘‘(A) 2 individuals representing State util-
ity consumer advocates; and 
‘‘(B) 1 individual, from a nongovernmental 
organization representing consumers. 
‘‘(3) MEETINGS.—The Advisory Committee 
shall meet at such frequency as may be required to 
carry out its duties. 
‘‘(4) REPORTS.—The Director shall provide for 
the publication of recommendations of the Advisory 
Committee on the public website established for the 
Office. 
‘‘(5) DURATION.—Notwithstanding any other 
provision of law, the Advisory Committee shall con-
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tinue in operation during the period for which the 
Office exists. 
‘‘(c) DEFINITIONS.— 
‘‘(1) ENERGY
CUSTOMER.—The term ‘energy 
customer’ means a residential customer or a small 
commercial customer that receives products or serv-
ices directly or indirectly from a public utility or 
natural gas company under the jurisdiction of the 
Commission. 
‘‘(2) NATURAL GAS COMPANY.—The term ‘nat-
ural gas company’ has the meaning given the term 
in section 2 of the Natural Gas Act (15 U.S.C. 
717a), as modified by section 601(a) of the Natural 
Gas Policy Act of 1978 (15 U.S.C. 3431(a)). 
‘‘(3) OFFICE.—The term ‘Office’ means the Of-
fice of Consumer Advocacy established under this 
section. 
‘‘(4) PUBLIC UTILITY.—The term ‘public util-
ity’ has the meaning given the term in section 
201(e) of this Act. 
‘‘(5) SMALL
COMMERCIAL
CUSTOMER.—The 
term ‘small commercial customer’ means a commer-
cial customer that has a peak demand of not more 
than 1,000 kilowatts per hour. 
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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as necessary 
to carry out this section. 
‘‘(e) SAVINGS CLAUSE.—Nothing in this section af-
fects the rights or obligations of any State utility con-
sumer advocate.’’. 
SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE 
POWER BORROWING AUTHORITY. 
(a) DETERMINATION.—No later than 6 months after 
the date of enactment of this Act, the Secretary of Energy, 
in coordination with the Secretary of Commerce, shall— 
(1) determine any geographic area within the 
contiguous United States that lacks a Federal power 
marketing agency; 
(2) develop a plan or criteria for the geographic 
areas identified in paragraph (1) regarding invest-
ment in renewable energy and associated infrastruc-
ture within an area identified in paragraph (1); and 
(3) identify any Federal agency within an area 
in paragraph (1) that has, or could develop, the abil-
ity to facilitate the investment in paragraph (2). 
(b) REPORT.—The Secretary of Energy, in coordina-
tion with the Secretary of Commerce, shall provide the de-
terminations made under subsection (a) to the Committee 
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on Energy and Commerce of the House of Representa-
tives. 
(c) ESTABLISHMENT.—Based upon the determina-
tions made pursuant to subsection (a), the Secretary of 
Energy, in coordination with the Secretary of Commerce, 
shall recommend to the Committee on Energy and Com-
merce of the House of Representatives the establishment 
of any new Federal lending authority, including authoriza-
tion of additional lending authority for existing Federal 
agencies, not to exceed $3,500,000,000 per geographic 
area identified in subsection (a)(1). 
(d) AUTHORIZATION.—$25,000,000 is authorized to 
be appropriated for fiscal year 2010 to carry out the provi-
sions of this section. 
SEC. 199A. STUDY. 
Not later than February 1, 2011, the Secretary of 
Energy shall transmit to the Congress a report showing 
the results of a study on the use of thorium-fueled nuclear 
reactors for national energy needs. Such report shall in-
clude a response to the International Atomic Energy 
Agency study entitled ‘‘Thorium fuel cycle - Potential ben-
efits and challenges’’ (IAEA–TECDOC–1450). 
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TITLE II—ENERGY EFFICIENCY 
Subtitle A—Building Energy 
Efficiency Programs 
SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING 
CODES. 
Section 304 of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6833) is amended to read as follows: 
‘‘SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING 
CODES. 
‘‘(a) ENERGY EFFICIENCY TARGETS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) or (3), the national building code energy 
efficiency target for the national average percentage 
improvement of a building’s energy performance 
when built to a code meeting the target shall be— 
‘‘(A) effective on the date of enactment of 
the American Clean Energy and Security Act of 
2009, 30 percent reduction in energy use rel-
ative to a comparable building constructed in 
compliance with the baseline code; 
‘‘(B) effective January 1, 2014, for resi-
dential buildings, and January 1, 2015, for 
commercial buildings, 50 percent reduction in 
energy use relative to the baseline code; and 
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‘‘(C) effective January 1, 2017, for resi-
dential buildings, and January 1, 2018, for 
commercial buildings, and every 3 years there-
after, respectively, through January 1, 2029, 
and January 1, 2030, 5 percent additional re-
duction in energy use relative to the baseline 
code. 
‘‘(2) CONSENSUS-BASED CODES.—If on any ef-
fective date specified in paragraph (1)(A), (B), or 
(C) a successor code to the baseline codes provides 
for greater reduction in energy use than is required 
under paragraph (1), the overall percentage reduc-
tion in energy use provided by that successor code 
shall be the national building code energy efficiency 
target. 
‘‘(3) TARGETS ESTABLISHED BY SECRETARY.— 
The Secretary may by rule establish a national 
building code energy efficiency target for residential 
or commercial buildings achieving greater reductions 
in energy use than the targets prescribed in para-
graph (1) or (2) if the Secretary determines that 
such greater reductions in energy use can be 
achieved with a code that is life cycle cost-justified 
and technically feasible. The Secretary may by rule 
establish a national building code energy efficiency 
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target for residential or commercial buildings achiev-
ing a reduction in energy use that is greater than 
zero but less than the targets prescribed in para-
graph (1) or (2) if the Secretary determines that 
such lesser target is the maximum reduction in en-
ergy use that can be achieved through a code that 
is life cycle cost-justified and technically feasible. 
‘‘(4) ADDITIONAL
REDUCTIONS
IN
ENERGY 
USE.—Effective on January 1, 2033, and once every 
3 years thereafter, the Secretary shall determine, 
after notice and opportunity for comment, whether 
further energy efficiency building code improvements 
for residential or commercial buildings, respectively, 
are life cycle cost-justified and technically feasible, 
and shall establish updated national building code 
energy efficiency targets that meet such criteria. 
‘‘(5) ZERO-NET-ENERGY
BUILDINGS.—In set-
ting targets under this subsection, the Secretary 
shall consider ways to support the deployment of 
distributed renewable energy technology, and shall 
seek to achieve the goal of zero-net-energy commer-
cial buildings established in section 422 of the En-
ergy Independence and Security Act of 2007 (42 
U.S.C. 17082). 
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‘‘(6) BASELINE CODE.—For purposes of this 
section, the term ‘baseline code’ means— 
‘‘(A) for residential buildings, the 2006 
International 
Energy 
Conservation 
Code 
(IECC) published by the International Code 
Council (ICC); and 
‘‘(B) for commercial buildings, the code 
published in ASHRAE Standard 90.1–2004. 
‘‘(7) CONSULTATION.—In establishing the tar-
gets required by this section, the Secretary shall 
consult with the Director of the National Institute of 
Standards and Technology. 
‘‘(b) NATIONAL ENERGY EFFICIENCY BUILDING 
CODES.— 
‘‘(1) REQUIREMENT.— 
‘‘(A) IN GENERAL.—There shall be estab-
lished national energy efficiency building codes 
under this subsection, for residential and com-
mercial buildings, sufficient to meet each of the 
national building code energy efficiency targets 
established under subsection (a), not later than 
the date that is 1 year after the deadline for es-
tablishment of each such target, except that the 
national energy efficiency building code estab-
lished to meet the target described in subsection 
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(a)(1)(A) shall be established by not later than 
15 months after the effective date of that tar-
get. 
‘‘(B) EXISTING
CODE.—If the Secretary 
finds prior to the date provided in subpara-
graph (A) for establishing a national code for 
any target that one or more energy efficiency 
building codes published by a recognized devel-
oper of national energy codes and standards 
meet or exceed the established target, the Sec-
retary shall select the code that meets the tar-
get with the highest efficiency in the most cost- 
effective manner, and such code shall be the na-
tional energy efficiency building code. 
‘‘(C) 
REQUIREMENT
TO
ESTABLISH 
CODE.—If the Secretary does not make a find-
ing under subparagraph (B), the national en-
ergy efficiency building code shall be established 
by rule by the Secretary under paragraph (2). 
‘‘(2) ESTABLISHMENT BY SECRETARY.— 
‘‘(A) PROCEDURE.—In order to establish a 
national energy efficiency building code as re-
quired under paragraph (1)(C), the Secretary 
shall— 
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‘‘(i) not later than 6 months prior to 
the effective date for each target, review 
existing and proposed codes published or 
under review by recognized developers of 
national energy codes and standards; 
‘‘(ii) determine the percentage of en-
ergy efficiency improvements that are or 
would be achieved in such published or 
proposed code versions relative to the tar-
get; 
‘‘(iii) propose improvements to such 
published or proposed code versions suffi-
cient to meet or exceed the target; and 
‘‘(iv) unless a finding is made under 
paragraph (1)(B) with respect to a code 
published by a recognized developer of na-
tional energy codes and standards, adopt a 
code that meets or exceeds the relevant na-
tional building code energy efficiency tar-
get by not later than 1 year after the effec-
tive date of each such target, and by not 
later than 15 months after the target is es-
tablished under subsection (a)(1)(A). 
‘‘(B) CALCULATIONS.—Each national en-
ergy efficiency building code established by the 
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Secretary under this paragraph shall be set at 
the maximum level the Secretary determines is 
life cycle cost-justified and technically feasible, 
in accordance with the following: 
‘‘(i) SAVINGS
CALCULATIONS.—Cal-
culations of energy savings shall take into 
account the typical lifetimes of different 
products, measures, and system configura-
tions. 
‘‘(ii) COST-EFFECTIVENESS CALCULA-
TIONS.—Calculations of life cycle cost-ef-
fectiveness shall be based on life cycle cost 
methods and procedures under section 544 
of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8254), but shall incor-
porate to the extent feasible externalities 
such as impacts on climate change and on 
peak energy demand that are not already 
incorporated in assumed energy costs. 
‘‘(C) CONSIDERATIONS.—In developing a 
national energy efficiency building code under 
this paragraph, the Secretary shall consider— 
‘‘(i) for residential national energy ef-
ficiency building codes— 
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‘‘(I) residential building stand-
ards 
published 
or 
proposed 
by 
ASHRAE; 
‘‘(II) building codes published or 
proposed by the International Code 
Council (ICC); 
‘‘(III) data from the Residential 
Energy Services Network (RESNET) 
on compliance measures utilized by 
consumers to qualify for the residen-
tial energy efficiency tax credits estab-
lished under the Energy Policy Act of 
2005; 
‘‘(IV) data and information from 
the Department of Energy’s Building 
America Program; 
‘‘(V) data and information from 
the Energy Star New Homes pro-
gram; 
‘‘(VI) data and information from 
the New Building Institute and simi-
lar organizations; and 
‘‘(VII) standards for practices 
and materials to achieve cool roofs in 
residential buildings, taking into con-
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sideration reduced air conditioning en-
ergy use as a function of cool roofs, 
the potential reduction in global 
warming from increased solar reflec-
tance from buildings, and cool roofs 
criteria in State and local building 
codes and in national and local vol-
untary programs, without reduction of 
otherwise applicable ceiling insulation 
standards; and 
‘‘(ii) for commercial national energy 
efficiency building codes— 
‘‘(I) commercial building stand-
ards proposed by ASHRAE; 
‘‘(II) building codes proposed by 
the International Code Council (ICC); 
‘‘(III) the Core Performance Cri-
teria published by the New Buildings 
Institute; 
‘‘(IV) data and information de-
veloped by the Director of the Com-
mercial 
High-Performance 
Green 
Building Office of the Department of 
Energy and any public-private part-
nerships established under that Office; 
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‘‘(V) data and information from 
the Energy Star for Buildings pro-
gram; 
‘‘(VI) data and information from 
the 
New 
Building 
Institute, 
RESNET, and similar organizations; 
and 
‘‘(VII) standards for practices 
and materials to achieve cool roofs in 
commercial buildings, taking into con-
sideration reduced air conditioning en-
ergy use as a function of cool roofs, 
the potential reduction in global 
warming from increased solar reflec-
tance from buildings, and cool roofs 
criteria in State and local building 
codes and in national and local vol-
untary programs, without reduction of 
otherwise applicable ceiling insulation 
standards. 
‘‘(D) CONSULTATION.—In establishing any 
national energy efficiency building code re-
quired by this section, the Secretary shall con-
sult with the Director of the National Institute 
of Standards and Technology. 
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‘‘(3) CONSENSUS STANDARD ASSISTANCE.—(A) 
To support the development of consensus standards 
that may provide the basis for national energy effi-
ciency building codes, minimize duplication of effort, 
encourage progress through consensus, and facilitate 
the development of greater building efficiency, the 
Secretary shall provide assistance to recognized de-
velopers of national energy codes and standards to 
develop, and where the relevant code has been adopt-
ed as the national code, disseminate consensus based 
energy efficiency building codes as provided in this 
paragraph. 
‘‘(B) Upon a finding by the Secretary that a 
code developed by such a developer meets a target 
established under subsection (a), the Secretary 
shall— 
‘‘(i) send notice of the Secretary’s finding 
to all duly authorized or appointed State, tribal, 
and local code agencies; and 
‘‘(ii) provide sufficient support to such a 
developer to make the code available on the 
Internet, or to accomplish distribution of such 
code to all such State, tribal, and local code 
agencies at no cost to the State, tribal, and 
local code agencies. 
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‘‘(C) The Secretary may contract with such a 
developer and with other organizations with exper-
tise on codes to provide training for State, tribal, 
and local code officials and building inspectors in the 
implementation and enforcement of such code. 
‘‘(D) The Secretary may provide grants and 
other support to such a developer to— 
‘‘(i) develop appropriate refinements to 
such code; and 
‘‘(ii) support analysis of options for im-
provements in the code to meet the next sched-
uled target. 
‘‘(4) CODE DEVELOPED BY SECRETARY.—If the 
Secretary establishes a national energy efficiency 
building code under paragraph (2), the Secretary 
shall— 
‘‘(A) to the extent that such code is based 
on a prior code developed by a recognized devel-
oper of national energy codes and standards, 
negotiate and provide appropriate compensation 
to such developer for the use of the code mate-
rials that remain in the code established by the 
Secretary; and 
‘‘(B) disseminate the national energy effi-
ciency building codes to State, tribal, and local 
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code officials, and support training and provide 
guidance and technical assistance to such offi-
cials as appropriate. 
‘‘(c) STATE ADOPTION
OF ENERGY EFFICIENCY 
BUILDING CODES.— 
‘‘(1) REQUIREMENT.—Not later than 1 year 
after a national energy efficiency building code for 
residential or commercial buildings is established or 
revised under subsection (b), each State— 
‘‘(A) shall— 
‘‘(i) review and update the provisions 
of its building code regarding energy effi-
ciency to meet or exceed the target met in 
the new national energy efficiency building 
code, to achieve equivalent or greater en-
ergy savings; 
‘‘(ii) document, where local govern-
ments establish building codes, that local 
governments representing not less than 80 
percent of the State’s urban population 
have adopted the new national code, or 
have adopted local codes that meet or ex-
ceed the target met in the new national 
code to achieve equivalent or greater en-
ergy savings; or 
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‘‘(iii) adopt the new national code; 
and 
‘‘(B) shall provide a certification to the 
Secretary demonstrating that energy efficiency 
building code provisions that apply pursuant to 
subparagraph (A) in that State meet or exceed 
the target met by the new national code, to 
achieve equivalent or greater energy savings. 
‘‘(2) CONFIRMATION.— 
‘‘(A) REQUIREMENT.—Not later than 90 
days after a State certification is provided 
under paragraph (1)(B), the Secretary shall de-
termine whether the State’s energy efficiency 
building code provisions meet the requirements 
of this subsection. 
‘‘(B) ACCEPTANCE BY SECRETARY.—If the 
Secretary determines under subparagraph (A) 
that the State’s energy efficiency building code 
or codes meet the requirements of this sub-
section, the Secretary shall accept the certifi-
cation. 
‘‘(C) DEFICIENCY
NOTICE.—If the Sec-
retary determines under subparagraph (A) that 
the State’s building code or codes do not meet 
the requirements of this subsection, the Sec-
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retary shall identify the deficiency in meeting 
the national building code energy efficiency tar-
get, and, to the extent possible, indicate areas 
where further improvement in the State’s code 
provisions would allow the deficiency to be 
eliminated. 
‘‘(D) REVISION OF CODE AND RECERTIFI-
CATION.—A State may revise its code or codes 
and submit a recertification under paragraph 
(1)(B) to the Secretary at any time. 
‘‘(3) COMPLIANT CODE.—For the purposes of 
meeting the target described in subsection (a)(1)(A) 
for residential buildings, a State that adopts the 
code represented in California’s Title 24-2009 by the 
date 27 months after the date of enactment of the 
American Clean Energy and Security Act of 2009 
shall be considered to have met the requirements of 
this subsection for the applicable period. 
‘‘(d) APPLICATION OF NATIONAL CODE TO STATE 
AND LOCAL JURISDICTIONS.— 
‘‘(1) IN GENERAL.—Upon the expiration of 18 
months after a national energy efficiency building 
code is established under subsection (b), in any ju-
risdiction where the State has not had a certification 
relating to that code accepted by the Secretary 
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under subsection (c)(2)(B), and the local govern-
ment has not had a certification relating to that 
code accepted by the Secretary under subsection 
(e)(5), the national energy efficiency building code 
shall become the applicable energy efficiency build-
ing code for such jurisdiction. 
‘‘(2) CONFLICTS.—In the event of a conflict be-
tween a provision of the national energy efficiency 
building code and a provision of other applicable en-
ergy codes, the national energy efficiency building 
code shall apply. If there is a conflict between a pro-
vision of the national energy efficiency building code 
and a provision of any applicable fire code, life safe-
ty code, egress code, or accessibility code, the Sec-
retary shall take appropriate actions to resolve such 
conflict in a manner that does not compromise the 
objectives of such codes. 
‘‘(3) STATE
LEGISLATIVE
ADOPTION.—In a 
State in which the relevant building energy code is 
adopted legislatively, the deadline in paragraph (1) 
shall not be earlier than 1 year after the first day 
that the legislature meets following establishment of 
a national energy efficiency building code. 
‘‘(4) NOTICE
OF
INTENT
TO
ENFORCE.—A 
State or locality that enforces building codes may as-
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sume responsibility for enforcing the national energy 
efficiency building code by notifying the Secretary to 
that effect not later than three months after the 
date established under paragraph (1). 
‘‘(5) VIOLATIONS.—Violations of this section 
shall be defined as follows: 
‘‘(A) If the building is subject to the re-
quirements of a State energy efficiency building 
code with respect to which a certification has 
been accepted by the Secretary under sub-
section (c)(2)(B) or a local energy efficiency 
building code with respect to which a certifi-
cation has been accepted by the Secretary pur-
suant to subsection (e)(5), or the requirements 
of the national energy efficiency building code 
in a State where the State or locality has noti-
fied the Secretary of its intent to enforce the 
provisions of the national energy efficiency 
building code, a violation shall be determined 
pursuant to the relevant provisions of State or 
local law. 
‘‘(B) If the building is subject to the re-
quirements of a national energy efficiency build-
ing code made applicable under paragraph (1) 
of this subsection, except as provided in sub-
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paragraph (A), a violation shall be defined by 
the Secretary pursuant to subsection (g). 
‘‘(e) STATE ENFORCEMENT OF ENERGY EFFICIENCY 
BUILDING CODES.— 
‘‘(1) IN GENERAL.—Each State, or where appli-
cable under State law each local government, shall 
implement and enforce applicable State or local 
codes with respect to which a certification was ac-
cepted by the Secretary under subsection (c)(2)(B) 
or paragraph (5) of this subsection, or the national 
energy efficiency building codes, as provided in this 
subsection. 
‘‘(2) STATE CERTIFICATION.—Not later than 2 
years after the date of a certification under sub-
section (c)(1) or the application of a national energy 
efficiency building code under subsection (d)(1), 
each State shall certify that it has— 
‘‘(A) achieved compliance with— 
‘‘(i) State codes, or, as provided under 
State law, local codes, with respect to 
which a certification was accepted by the 
Secretary under subsection (c)(2)(B); or 
‘‘(ii) the national energy efficiency 
building code, as applicable; or 
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‘‘(B) for any certification submitted within 
7 years after the date of enactment of the 
American Clean Energy and Security Act of 
2009, made significant progress toward achiev-
ing such compliance. 
‘‘(3) ACHIEVING COMPLIANCE.—A State shall 
be considered to achieve compliance with a code de-
scribed in paragraph (2)(A) if at least 90 percent of 
new and substantially renovated building space in 
that State in the preceding year upon inspection 
meets the requirements of the code. A certification 
under paragraph (2) shall include documentation of 
the rate of compliance based on— 
‘‘(A) independent inspections of a random 
sample of the new and substantially renovated 
buildings covered by the code in the preceding 
year; or 
‘‘(B) an alternative method that yields an 
accurate measure of compliance as determined 
by the Secretary. 
‘‘(4) SIGNIFICANT PROGRESS.—A State shall be 
considered to have made significant progress toward 
achieving compliance with a code described in para-
graph (2)(A) if— 
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‘‘(A) the State has developed a plan, in-
cluding for hiring enforcement staff, providing 
training, providing manuals and checklists, and 
instituting enforcement programs, designed to 
achieve full compliance within 5 years after the 
date of the adoption of the code; 
‘‘(B) the State is taking significant, timely, 
and measurable action to implement that plan; 
‘‘(C) the State has not reduced its expendi-
tures for code enforcement; and 
‘‘(D) at least 50 percent of new and sub-
stantially renovated building space in the State 
in the preceding year upon inspection meets the 
requirements of the code. 
‘‘(5) SECRETARY’S DETERMINATION.—Not later 
than 90 days after a State certification under para-
graph (2), the Secretary shall determine whether the 
State has demonstrated that it has complied with 
the requirements of this subsection, including accu-
rate measurement of compliance, or that it has made 
significant progress toward compliance. If such de-
termination is positive, the Secretary shall accept 
the certification. If the determination is negative, 
the Secretary shall identify the areas of deficiency. 
‘‘(6) OUT OF COMPLIANCE.— 
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‘‘(A) IN GENERAL.—Any State for which 
the Secretary has not accepted a certification 
under paragraph (5) by the dates specified in 
paragraph (2) is out of compliance with this 
section. 
‘‘(B) LOCAL COMPLIANCE.—In any State 
that is out of compliance with this section as 
provided in subparagraph (A), a local govern-
ment may be in compliance with this section by 
meeting all certification requirements of this 
subsection. 
‘‘(C) NONCOMPLIANCE.—Any State that is 
not in compliance with this section, as provided 
in subparagraph (A), shall, until the State re-
gains such compliance, be ineligible to receive— 
‘‘(i) emission allowances pursuant to 
subsection (h)(1); 
‘‘(ii) Federal funding in excess of that 
State’s share (calculated according to the 
allocation formula in section 363 of the 
Energy Policy and Conservation Act (42 
U.S.C. 6323)) of $125,000,000 each year; 
and 
‘‘(iii) for— 
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‘‘(I) the first year for which the 
State is out of compliance, 25 percent 
of any additional funding or other 
items of monetary value otherwise 
provided under the American Clean 
Energy and Security Act of 2009; 
‘‘(II) the second year for which 
the State is out of compliance, 50 per-
cent of any additional funding or 
other items of monetary value other-
wise provided under the American 
Clean Energy and Security Act of 
2009; 
‘‘(III) the third year for which 
the State is out of compliance, 75 per-
cent of any additional funding or 
other items of monetary value other-
wise provided under the American 
Clean Energy and Security Act of 
2009; and 
‘‘(IV) the fourth and subsequent 
years for which the State is out of 
compliance, 100 percent of any addi-
tional funding or other items of mone-
tary value otherwise provided under 
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the American Clean Energy and Secu-
rity Act of 2009. 
‘‘(f) FEDERAL ENFORCEMENT
AND TRAINING.— 
Where a State fails and local governments in that State 
also fail to enforce the applicable State or national energy 
efficiency building codes, the Secretary shall enforce such 
codes, as follows: 
‘‘(1) The Secretary shall establish, by rule, 
within 2 years after the date of enactment of the 
American Clean Energy and Security Act of 2009, 
an energy efficiency building code enforcement capa-
bility. 
‘‘(2) Such enforcement capability shall be de-
signed to achieve 90 percent compliance with such 
code in any State within 1 year after the date of the 
Secretary’s determination that such State is out of 
compliance with this section. 
‘‘(3) The Secretary may set and collect reason-
able inspection fees to cover the costs of inspections 
required for such enforcement. Revenue from fees 
collected shall be available to the Secretary to carry 
out the requirements of this section upon appropria-
tion. 
‘‘(4) In any jurisdiction to which this subsection 
applies, the Secretary shall coordinate enforcement 
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of the national energy efficiency building code with 
State and local code enforcement of other building 
codes. 
‘‘(5) In any jurisdiction to which this subsection 
applies, the Secretary shall enhance compliance by 
conducting training and education of builders and 
other professionals in the jurisdiction concerning the 
national energy efficiency building code. 
‘‘(6) The Secretary shall coordinate with profes-
sional organizations representing code officials, ar-
chitects, engineers, builders, and other experts to de-
velop training curricula concerning the national en-
ergy efficiency building code. 
‘‘(7) If the Secretary enforces such codes under 
this subsection, the Secretary may, as appropriate, 
redefine violations of such codes. 
‘‘(g) ENFORCEMENT PROCEDURES.—The Secretary 
shall propose and, not later than 3 years after the date 
of enactment of the American Clean Energy and Security 
Act of 2009, shall define by rule violations of the energy 
efficiency building codes to be enforced by the Secretary 
pursuant to this section, and the penalties that shall apply 
to violators, in any jurisdiction in which the national en-
ergy efficiency building code has been made applicable 
under subsection (d)(1). To the extent that the Secretary 
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determines that the authority to adopt and impose such 
violations and penalties by rule requires further statutory 
authority, the Secretary shall report such determination 
to Congress as soon as such determination is made, but 
not later than 1 year after the enactment of the American 
Clean Energy and Security Act of 2009. 
‘‘(h) FEDERAL SUPPORT.— 
‘‘(1) ALLOWANCE
ALLOCATION
FOR
STATE 
COMPLIANCE.—For each vintage year from 2012 
through 2050, the Administrator shall distribute al-
lowances allocated pursuant to section 782(g)(2) of 
the Clean Air Act to the SEED Account for each 
State. Such allowances shall be distributed according 
to a formula established by the Secretary as follows: 
‘‘(A) One-fifth in an equal amount to each 
of the 50 States and United States territories. 
‘‘(B) Two-fifths as a function of the rel-
ative energy use in all buildings in each State 
in the most recent year for which data is avail-
able. 
‘‘(C) Two-fifths based on the number of 
building construction starts recorded in each 
State, the number of new building permits ap-
plied for in each State, or other relevant avail-
able data indicating building activity in each 
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State, in the judgment of the Secretary, for the 
year prior to the year of the distribution. 
‘‘(2) ALLOWANCE ALLOCATION TO LOCAL GOV-
ERNMENTS.—In the instance that the Secretary cer-
tifies that one or more local governments are in com-
pliance with this section pursuant to subsection 
(e)(6)(B), the Administrator shall provide to each 
such local government the portion of the emission al-
lowances that would have been provided to that 
State as a function of the population of that locality 
as a proportion of the population of that State as a 
whole. 
‘‘(3) UNALLOCATED ALLOWANCES.—To the ex-
tent that allowances are not provided to State or 
local governments for lack of certification in any 
year, those allowances shall be added to the amount 
provided to those States and local governments that 
are certified as eligible in that year. 
‘‘(4) USE
OF
ALLOWANCES.—Each State or 
each local government shall use such emission allow-
ances as it receives pursuant to this section exclu-
sively for the purposes of this section, including cov-
ering a reasonable portion of the costs of the devel-
opment, adoption, implementation, and enforcement 
of a State or local energy efficiency building code 
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that meets the national building code energy effi-
ciency targets, or the national energy efficiency 
building code. In a State where local governments 
provide substantially all building code enforcement, 
a minimum of 50 percent of the allowance value re-
ceived pursuant to this section shall be distributed to 
local governments as a function of the relative popu-
lations of such localities. In a State where local and 
State governments share building code enforcement 
duties, the State and local shares of allowance value 
required for enforcement shall be allocated in pro-
portion to the number of building inspections per-
formed by each level of government, and the share 
for local governments shall be distributed as a func-
tion of the relative populations of such localities. 
States shall further ensure that the allowance value 
made available pursuant to section 782 of the Clean 
Air Act and section 132 of the American Clean En-
ergy and Security Act of 2009 is provided to the ap-
plicable State or local governmental entities as nec-
essary to adopt and implement energy efficiency 
building codes, provide training for inspectors, en-
sure compliance, and provide such other functions as 
necessary. Actions taken by local authorities pursu-
ant to this section shall constitute an acceptable use 
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of funds authorized pursuant to the Energy Effi-
ciency and Conservation Block Grant program under 
section 544 of the Energy Independence and Secu-
rity Act of 2007 (42 U.S.C. 17154). 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy $25,000,000, and such additional sums as may be 
necessary to provide enforcement of a national energy effi-
ciency building code, for each of fiscal years 2010 through 
2020, and such sums thereafter as may be necessary to 
support the purposes of this section. 
‘‘(j) ANNUAL REPORTS BY SECRETARY.—The Sec-
retary shall annually submit to Congress, and publish in 
the Federal Register, a report on— 
‘‘(1) the status of national energy efficiency 
building codes; 
‘‘(2) the status of energy efficiency building 
code adoption and compliance in the States; 
‘‘(3) the implementation of this section; 
‘‘(4) the status of Federal enforcement of build-
ing codes, including coordination with State and 
local enforcement, and the extent and resolution of 
any conflicts between the national energy efficiency 
building code and other residential and commercial 
building codes in force in the same jurisdictions; and 
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‘‘(5) impacts of past action under this section, 
and potential impacts of further action, on lifetime 
energy use by buildings, including resulting energy 
and cost savings.’’. 
SEC. 202. BUILDING RETROFIT PROGRAM. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ASSISTED
HOUSING.—The term ‘‘assisted 
housing’’ means those properties receiving project- 
based assistance pursuant to section 202 of the 
Housing Act of 1959 (12 U.S.C. 1701q), section 
811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013), section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f), or similar programs. 
(2) NONRESIDENTIAL
BUILDING.—The term 
‘‘nonresidential building’’ means a building with a 
primary use or purpose other than residential hous-
ing, including any building used for commercial of-
fices, schools, academic and other public and private 
institutions, nonprofit organizations including faith- 
based organizations, hospitals, hotels, and other non-
residential purposes. Such buildings shall include 
mixed-use properties used for both residential and 
nonresidential purposes in which more than half of 
building floor space is nonresidential. 
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(3) PERFORMANCE-BASED BUILDING RETROFIT 
PROGRAM.—The term ‘‘performance-based building 
retrofit program’’ means a program that determines 
building energy efficiency success based on actual 
measured savings after a retrofit is complete, as evi-
denced by energy invoices or evaluation protocols. 
(4) PRESCRIPTIVE
BUILDING
RETROFIT
PRO-
GRAM.—The term ‘‘prescriptive building retrofit pro-
gram’’ means a program that projects building ret-
rofit energy efficiency success based on the known 
effectiveness of measures prescribed to be included 
in a retrofit. 
(5) PUBLIC HOUSING.—The term ‘‘public hous-
ing’’ means properties receiving assistance under 
section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g). 
(6) 
RECOMMISSIONING; 
RETROCOMMISSIONING.—The 
terms 
‘‘recommis-
sioning’’ and ‘‘retrocommissioning’’ have the mean-
ing given those terms in section 543(f)(1) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8253(f)(1)). 
(7) RESIDENTIAL BUILDING.—The term ‘‘resi-
dential building’’ means a building whose primary 
use is residential. Such buildings shall include sin-
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gle-family homes (both attached and detached), 
owner-occupied units in larger buildings with their 
own dedicated space-conditioning systems, apart-
ment buildings, multi-unit condominium buildings, 
public housing, assisted housing, and buildings used 
for both residential and nonresidential purposes in 
which more than half of building floor space is resi-
dential. 
(8) STATE
ENERGY
PROGRAM.—The term 
‘‘State Energy Program’’ means the program under 
part D of title III of the Energy Policy and Con-
servation Act (42 U.S.C. 6321 et seq.). 
(b) ESTABLISHMENT.—The Administrator shall de-
velop and implement, in consultation with the Secretary 
of Energy, standards for a national energy and environ-
mental building retrofit policy for single-family and multi-
family residences. The Administrator shall develop and 
implement, in consultation with the Secretary of Energy 
and the Director of Commercial High-Performance Green 
Buildings, standards for a national energy and environ-
mental building retrofit policy for nonresidential buildings. 
The programs to implement the residential and nonresi-
dential policies based on the standards developed under 
this section shall together be known as the Retrofit for 
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Energy and Environmental Performance (REEP) pro-
gram. 
(c) PURPOSE.—The purpose of the REEP program 
is to facilitate the retrofitting of existing buildings across 
the United States to achieve maximum cost-effective en-
ergy efficiency improvements and significant improve-
ments in water use and other environmental attributes. 
(d) FEDERAL ADMINISTRATION.— 
(1) EXISTING PROGRAMS.—In creating and op-
erating the REEP program— 
(A) the Administrator shall make appro-
priate use of existing programs, including the 
Energy Star program and in particular the En-
vironmental Protection Agency Energy Star for 
Buildings program; and 
(B) the Secretary of Energy shall make 
appropriate use of existing programs, including 
delegating authority to the Director of Commer-
cial High-Performance Green Buildings ap-
pointed under section 421 of the Energy Inde-
pendence and Security Act of 2007 (42 U.S.C. 
17081), who shall designate and provide fund-
ing to support a high-performance green build-
ing partnership consortium pursuant to sub-
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section (f) of such section to support efforts 
under this section. 
(2) CONSULTATION AND COORDINATION.—The 
Administrator and the Secretary of Energy shall 
consult with and coordinate with the Secretary of 
Housing and Urban Development in carrying out the 
REEP program with regard to retrofitting of public 
housing and assisted housing. As a result of such 
consultation, the Administrator shall establish stand-
ards to ensure that retrofits of public housing and 
assisted housing funded pursuant to this section are 
cost-effective, including opportunities to address the 
potential co-performance of repair and replacement 
needs that may be supported with other forms of 
Federal assistance. Owners of public housing or as-
sisted housing receiving funding through the REEP 
program shall agree to continue to provide afford-
able housing consistent with the provisions of the 
authorizing legislation governing each program for 
an additional period commensurate with the funding 
received, as determined in accordance with guide-
lines established by the Secretary of Housing and 
Urban Development. 
(3) ASSISTANCE.—The Administrator and the 
Secretary of Energy shall provide consultation and 
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assistance to State and local agencies for the estab-
lishment of revolving loan funds, loan guarantees, or 
other forms of financial assistance under this sec-
tion. 
(e) STATE AND LOCAL ADMINISTRATION.— 
(1) DESIGNATION AND DELEGATION.—A State 
may designate one or more agencies or entities, in-
cluding those regulated by the State, to carry out 
the purposes of this section, but shall designate one 
entity or individual as the principal point of contact 
for the Administrator regarding the REEP Pro-
gram. The designated State agency, agencies, or en-
tities may delegate performance of appropriate ele-
ments of the REEP program, upon their request 
and subject to State law, to counties, municipalities, 
appropriate public agencies, and other divisions of 
local government, as well as to entities regulated by 
the State. In making any such designation or delega-
tion, a State shall give priority to entities that ad-
minister existing comprehensive retrofit programs, 
including those under the supervision of State utility 
regulators. States shall maintain responsibility for 
meeting the standards and requirements of the 
REEP program. In any State that elects not to ad-
minister the REEP program, a unit of local govern-
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ment may propose to do so within its jurisdiction, 
and if the Administrator finds that such local gov-
ernment is capable of administering the program, 
the Administrator may provide allowances to that 
local government, prorated according to the popu-
lation of the local jurisdiction relative to the popu-
lation of the State, for purposes of the REEP pro-
gram. 
(2) EMPLOYMENT.—States and local govern-
ment entities may administer a REEP program in 
a manner that authorizes public or regulated inves-
tor-owned utilities, building auditors and inspectors, 
contractors, nonprofit organizations, for-profit com-
panies, and other entities to perform audits and ret-
rofit services under this section. A State may pro-
vide incentives for retrofits without direct participa-
tion by the State or its agents, so long as the result-
ing savings are measured and verified. A State or 
local administrator of a REEP program shall seek 
to ensure that sufficient qualified entities are avail-
able to support retrofit activities so that building 
owners have a competitive choice among qualified 
auditors, raters, contractors, and providers of serv-
ices related to retrofits. Nothing in this section is in-
tended to deny the right of a building owner to 
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choose the specific providers of retrofit services to 
engage for a retrofit project in that owner’s building. 
(3) EQUAL INCENTIVES FOR EQUAL IMPROVE-
MENT.—In general, the States should strive to offer 
the same levels of incentives for retrofits that meet 
the same efficiency improvement goals, regardless of 
whether the State, its agency or entity, or the build-
ing owner has conducted the retrofit achieving the 
improvement, provided the improvement is measured 
and verified. 
(f) ELEMENTS OF REEP PROGRAM.—The Adminis-
trator, in consultation with the Secretary of Energy, shall 
establish goals, guidelines, practices, and standards for ac-
complishing the purpose stated in subsection (c), and shall 
annually review and, as appropriate, revise such goals, 
guidelines, practices, and standards. The program under 
this section shall include the following: 
(1) 
Residential 
Energy 
Services 
Network 
(RESNET) or Building Performance Institute 
(BPI) analyst certification of residential building en-
ergy and environment auditors, inspectors, and rat-
ers, or an equivalent certification system as deter-
mined by the Administrator. 
(2) BPI certification or licensing by States of 
residential building energy and environmental ret-
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rofit contractors, or an equivalent certification or li-
censing system as determined by the Administrator. 
(3) Provision of BPI, RESNET, or other ap-
propriate information on equipment and procedures, 
as determined by the Administrator, that contractors 
can use to test the energy and environmental effi-
ciency of buildings effectively (such as infrared pho-
tography and pressurized testing, and tests for water 
use and indoor air quality). 
(4) Provision of clear and effective materials to 
describe the testing and retrofit processes for typical 
buildings. 
(5) Guidelines for offering and managing pre-
scriptive building retrofit programs and perform-
ance-based building retrofit programs for residential 
and nonresidential buildings. 
(6) Guidelines for applying recommissioning 
and retrocommissioning principles to improve a 
building’s operations and maintenance procedures. 
(7) A requirement that building retrofits con-
ducted pursuant to a REEP program utilize, espe-
cially in all air-conditioned buildings, roofing mate-
rials with high solar energy reflectance, unless inap-
propriate due to green roof management, solar en-
ergy production, or for other reasons identified by 
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the Administrator, in order to reduce energy con-
sumption within the building, increase the albedo of 
the building’s roof, and decrease the heat island ef-
fect in the area of the building, without reduction of 
otherwise applicable ceiling insulation standards. 
(8) Determination of energy savings in a per-
formance-based building retrofit program through— 
(A) for residential buildings, comparison of 
before and after retrofit scores on the Home 
Energy Rating System (HERS) Index, where 
the final score is produced by an objective third 
party; 
(B) for nonresidential buildings, Environ-
mental Protection Agency Portfolio Manager 
benchmarks; or 
(C) for either residential or nonresidential 
buildings, use of an Administrator-approved 
simulation program by a contractor with the 
appropriate certification, subject to appropriate 
software standards and verification of at least 
15 percent of all work done, or such other per-
centage as the Administrator may determine. 
(9) Guidelines for utilizing the Energy Star 
Portfolio Manager, the Home Energy Rating System 
(HERS) rating system, Home Performance with En-
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ergy Star program approvals, and any other tools 
associated with the retrofit program. 
(10) Requirements and guidelines for post-ret-
rofit inspection and confirmation of work and energy 
savings. 
(11) Detailed descriptions of funding options 
for the benefit of State and local governments, along 
with model forms, accounting aids, agreements, and 
guides to best practices. 
(12) Guidance on opportunities for— 
(A) rating or certifying retrofitted build-
ings as Energy Star buildings, or as green 
buildings under a recognized green building rat-
ing system; 
(B) assigning Home Energy Rating Sys-
tem (HERS) or similar ratings; and 
(C) completing any applicable building per-
formance labels. 
(13) Sample materials for publicizing the pro-
gram to building owners, including public service an-
nouncements and advertisements. 
(14) Processes for tracking the numbers and lo-
cations of buildings retrofitted under the REEP pro-
gram, with information on projected and actual sav-
ings of energy and its value over time. 
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(g) REQUIREMENTS.—As a condition of receiving al-
lowances for the REEP program pursuant to this Act, a 
State or qualifying local government shall— 
(1) adopt the standards for training, certifi-
cation of contractors, certification of buildings, and 
post-retrofit inspection as developed by the Adminis-
trator for residential and nonresidential buildings, 
respectively, except as necessary to match local con-
ditions, needs, efficiency opportunities, or other local 
factors, or to accord with State laws or regulations, 
and then only after the Administrator approves such 
a variance; 
(2) establish fiscal controls and accounting pro-
cedures (which conform to generally accepted gov-
ernment accounting principles) sufficient to ensure 
proper accounting during appropriate accounting pe-
riods for payments received and disbursements, and 
for fund balances; and 
(3) agree to make not less than 10 percent of 
allowance 
value 
received 
pursuant 
to 
section 
132(c)(2) for dedicated funding of its REEP pro-
gram available on a preferential basis for retrofit 
projects proposed for public housing and assisted 
housing, provided that— 
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(A) none of such funds shall be used for 
demolition of such housing; 
(B) such retrofits not shall not be used to 
justify any increase in rents charged to resi-
dents of such housing; and 
(C) owners of such housing shall agree to 
continue to provide affordable housing con-
sistent with the provisions of the authorizing 
legislation governing each program for an addi-
tional period commensurate with the funding 
received. 
The Administrator shall conduct or require each State to 
have such independent financial audits of REEP-related 
funding as the Administrator considers necessary or ap-
propriate to carry out the purposes of this section. 
(h) OPTIONS TO SUPPORT REEP PROGRAM.—The 
emission allowances provided pursuant to this Act to the 
States SEED Accounts shall support the implementation 
through State REEP programs of alternate means of cre-
ating incentives for, or reducing financial barriers to, im-
proved energy and environmental performance in build-
ings, consistent with this section, including— 
(1) implementing prescriptive building retrofit 
programs and performance-based building retrofit 
programs; 
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(2) providing credit enhancement, interest rate 
subsidies, loan guarantees, or other credit support; 
(3) providing initial capital for public revolving 
fund financing of retrofits, with repayments by bene-
ficiary building owners over time through their tax 
payments, calibrated to create net positive cash flow 
to the building owner; 
(4) providing funds to support utility-operated 
retrofit programs with repayments over time 
through utility rates, calibrated to create net positive 
cash flow to the building owner, and transferable 
from one building owner to the next with the build-
ing’s utility services; 
(5) providing funds to local government pro-
grams to provide REEP services and financial as-
sistance; and 
(6) other means proposed by State and local 
agencies, subject to the approval of the Adminis-
trator. 
(i) SUPPORT FOR PROGRAM.— 
(1) USE OF ALLOWANCES.—Direct Federal sup-
port for the REEP program is provided through the 
emission allowances allocated to the States’ SEED 
Accounts pursuant to section 132 of this Act. To the 
extent that a State provides allowances to local gov-
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(b) DESIGNATION
OF
BEST-IN-CLASS
PRODUCT 
MODELS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall designate product models of appliances, equip-
ment, or electronics as Best-in-Class Product mod-
els. The Secretary shall publicly announce the Best- 
in-Class Product models designated under this sub-
section. The Secretary shall define product classes 
broadly and, except as provided in paragraph (2), 
shall designate as Best-in-Class Product models no 
more than the most efficient 10 percent of the com-
mercially available product models in a class that 
demonstrate, as a group, a distinctly greater energy 
efficiency than the average energy efficiency of that 
class of appliances, equipment, or electronics. In des-
ignating models, the Secretary shall— 
(A) identify commercially available models 
in the relevant class of products; 
(B) identify the subgroup of those models 
that share the distinctly higher energy-effi-
ciency characteristics that warrant designation 
as best-in-class; and 
(C) add other models in that class to the 
list of Best-in-Class Product models as they 
demonstrate their ability to meet the higher-ef-
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