SEC. 143. ZERO-ENERGY COMMERCIAL BUILDINGS INITIA-
TIVE. 
(a) GOAL.—The Director, in partnership with the 
Consortium, shall periodically study and refine a national 
goal to reduce commercial building energy use and achieve 
zero-net-energy commercial buildings. Unless the Director 
concludes that such targets are unachievable or unreal-
istic, the goal shall include objectives that— 
(1) all new commercial buildings constructed 
after the beginning of 2025 are zero-net-energy com-
mercial buildings; 
(2) by 2035, 50 percent of the then existing 
stock of commercial buildings that were constructed 
before 2025 are zero-net-energy commercial build-
ings; and 
(3) by 2050, all commercial buildings are zero- 
net-energy commercial buildings. 
(b) STRATEGY.— 
(1) IN GENERAL.—The Director, in partnership 
with the Consortium, shall develop a market trans-
formation strategy intended to achieve the adopted 
goal by significantly accelerating the development 
and widespread deployment of energy efficiency tech-
nologies, practices, and policies in both new and ex-
isting commercial buildings, and by leveraging State, 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
utility, and private sector commercial building en-
ergy efficiency programs. 
(2) FEDERAL COMPLIANCE WITH GOAL.—The 
Director, in partnership with the Consortium, shall 
further identify and adopt a strategy leading to zero- 
net-energy performance for all Federal buildings in 
accordance with the adopted goal. 
(c) INITIATIVE.—The Director, in partnership with 
the Consortium, shall implement an initiative to carry out 
the strategy that may include— 
(1) support for industry efforts to develop ad-
vanced materials, equipment, controls, practices, and 
integrated building systems aimed at achieving zero- 
net-energy commercial buildings and monitoring and 
benchmarking commercial building energy use; 
(2) training, education, and awareness pro-
grams, including— 
(A) programs in cooperation with industry 
and professional associations and educational 
institutions to provide education on achieving 
sustainable and energy-efficient performance 
through proper system and structure design, 
construction, and operation to— 
(i) architects; 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
(ii) mechanical, electrical, and plumb-
ing engineers; 
(iii) contractors; and 
(iv) construction managers and facil-
ity managers; 
(B) programs to incorporate energy effi-
ciency and sustainability elements into architec-
ture, engineering, and vocational training and 
certification curricula, including professional 
certification and continuing education pro-
grams; and 
(C) regional and national public education 
campaigns to educate real estate, finance, and 
other commercial buildings professionals and 
the general public about the opportunities for 
energy and cost savings and associated environ-
mental and health benefits associated with high 
performance green buildings; 
(3) pilot projects to demonstrate and document 
the performance of scalable and replicable tech-
nologies, practices, and policies to achieve high-per-
formance green buildings and zero-net-energy com-
mercial buildings, including— 
(A) pilot projects representing each market 
segment or building type in each climate region 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
that include current best practice in integrated 
design, technology and systems, construction, 
commissioning, operation, and building infor-
mation management; 
(B) pilot projects, in cooperation with 
State and local governments, in public build-
ings; and 
(C) pilot projects, in cooperation with pub-
lic school districts and colleges and universities, 
to— 
(i) demonstrate such technologies and 
practices in new and existing facilities; 
(ii) involve students and faculty mem-
bers in integrating energy efficiency and 
green building concepts and measures 
within the educational curriculum; and 
(iii) use education facilities as show-
cases to communicate these concepts to the 
community; 
(4) technical assistance and funding of pilot 
projects for the development and use of new building 
energy design standards, model designs, model en-
ergy codes, and incentives and other policies, to be 
provided to designers, builders, developers, commer-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
cial building owners, and utility and government en-
ergy efficiency programs, including— 
(A) support for code and standards organi-
zations to develop aggressive model energy 
codes, beyond-code guidelines, and code compli-
ance programs for new and existing buildings; 
(B) assistance to utilities, builders, and 
State and local officials in developing, imple-
menting, and evaluating pilot programs to 
achieve building design and actual energy per-
formance that meet and exceed performance 
levels in the model energy codes; and 
(C) support for development and dissemi-
nation of model programs and policies that pro-
vide incentives for high performance green 
buildings, such as accelerated zoning and con-
struction permitting and inspections, density 
bonuses, and State and local tax incentives; 
(5) technical assistance and funding of pilot 
projects for innovative market-based initiatives to 
advance energy-efficient technologies and practices 
in new and existing commercial buildings, provided 
to State agencies, utilities, and other entities, includ-
ing— 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
(A) design assistance and incentives for in-
corporating sustainability and energy efficiency 
beginning with the first stages of building de-
sign and continuing through start-up commis-
sioning and long-term operation; 
(B) performance-based design and con-
struction fees for high performance green con-
struction and renovation; 
(C) equipment leasing and financing strat-
egies for energy efficiency upgrades of new and 
replacement commercial building equipment; 
(D) trade-in programs for early retirement 
of low-efficiency commercial building equipment 
and system components, such as motors, air 
conditioners, boilers, lighting, and windows; 
(E) improved methods of energy perform-
ance contracting to reduce transaction costs 
and encourage the use of third-party funding 
and expertise for energy-efficient retrofitting of 
existing commercial buildings; 
(F) improved model protocols for commer-
cial building energy audits, energy performance 
measurement and verification, continuous com-
missioning, and ongoing performance moni-
toring and diagnostics; and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
(D) voluntary programs at the national, re-
gional, and sectoral levels to recognize and re-
ward commercial buildings with exceptional per-
formance or performance improvement; and 
(E) increased availability and use of tools 
for post occupancy assessment of energy effi-
ciency and occupant satisfaction with commer-
cial high performance green buildings, and for 
measuring and documenting non-energy finan-
cial and other benefits of such buildings; 
(7) in cooperation with the Energy Information 
Administration and with utility, State, and private 
sector organizations, development and application of 
improved methods for assessing trends in the energy 
performance of the commercial buildings stock, new 
construction, and building renovations, by building 
type and region, in order to track progress toward 
the goals adopted under subsection (a); and 
(8) such otherwise authorized activities that the 
Secretary and the Director determine are necessary 
to the success of the initiative. 
SEC. 144. PUBLIC OUTREACH. 
The Director, in coordination with the Consortium, 
shall carry out public outreach to inform individuals and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
entities of the information and services available Govern-
mentwide by— 
(1) establishing and maintaining a national 
high-performance green building clearinghouse, in-
cluding on the internet, that— 
(A) identifies existing similar efforts and 
coordinates activities of common interest; and 
(B) provides information relating to high- 
performance 
green 
buildings, 
including 
hyperlinks to internet sites that describe the ac-
tivities, information, and resources of— 
(i) the Federal Government; 
(ii) State and local governments; 
(iii) the private sector (including non-
governmental and nonprofit entities and 
organizations); and 
(iv) international organizations; 
(2) identifying and recommending educational 
resources for implementing high-performance green 
building practices, including security and emergency 
benefits and practices; 
(3) providing access to technical assistance on 
using tools and resources to make more cost-effec-
tive, energy-efficient, health-protective, and environ-
mentally beneficial decisions for constructing high- 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
performance green buildings, particularly tools avail-
able to conduct life-cycle costing and life-cycle as-
sessment; 
(4) providing information on application proc-
esses for certifying a high-performance green build-
ing, including certification and commissioning; 
(5) providing technical information, market re-
search, or other forms of assistance or advice that 
would be useful in planning and constructing high- 
performance green buildings; 
(6) using such other methods as are determined 
by the Director to be appropriate; 
(7) surveying existing research and studies re-
lating to high-performance green buildings; 
(8) coordinating activities of common interest; 
(9) developing and recommending a high-per-
formance green building practices that— 
(A) identify information and research 
needs, including the relationships between 
health, occupant productivity, and each of— 
(i) pollutant emissions from materials 
and products in the building; 
(ii) natural day lighting; 
(iii) ventilation choices and tech-
nologies; 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
(iv) heating, cooling, and system con-
trol choices and technologies; 
(v) moisture control and mold; 
(vi) maintenance, cleaning, and pest 
control activities; 
(vii) acoustics; and 
(viii) other issues relating to the 
health, comfort, productivity, and perform-
ance of occupants of the building; and 
(B) promote the development and dissemi-
nation of high-performance green building 
measurement tools that, at a minimum, may be 
used— 
(i) to monitor and assess the life-cycle 
performance of facilities (including dem-
onstration projects) built as high-perform-
ance green buildings; and 
(ii) to perform life-cycle assessments; 
(10) assisting the budget and life-cycle costing 
functions of the Office under section 145; 
(11) studying and identifying potential benefits 
of green buildings relating to security, natural dis-
aster, and emergency needs of the Federal Govern-
ment; and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
(12) supporting other research initiatives deter-
mined by the Office. 
SEC. 145. BUDGET AND LIFE-CYCLE COSTING AND CON-
TRACTING. 
The Director, in coordination with the Consortium, 
shall— 
(1) identify, review, and analyze current budget 
and contracting practices that affect achievement of 
high-performance green buildings, including the 
identification of barriers to green building life-cycle 
costing and budgetary issues; 
(2) develop guidance and conduct training ses-
sions with budget specialists and contracting per-
sonnel from Federal agencies and budget examiners 
to apply life-cycle cost criteria to actual projects; 
(3) identify tools to aid life-cycle cost decision- 
making; and 
(4) explore the feasibility of incorporating the 
benefits of green buildings, such as security benefits, 
into a cost-budget analysis to aid in life-cycle costing 
for budget and decision making processes. 
SEC. 146. INCENTIVES. 
As soon as practicable after the date of enactment 
of this Act, the Director shall identify incentives to encour-
age the use of green buildings and related technology in 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
116 
SEC. 150. ENERGY EFFICIENCY FOR DATA CENTER BUILD-
INGS. 
(a) IN GENERAL.— 
(1) Not later than 90 days after the date of en-
actment of this Act, the Secretary of Energy and 
Administrator of the Environmental Protection 
Agency shall jointly, after consulting with informa-
tion technology industry and other interested par-
ties, initiate a voluntary national information pro-
gram for those types of data centers and data center 
equipment and facilities that are widely used and for 
which there is a potential for significant data center 
energy savings as a result of such program. 
(2) Such program shall— 
(A) consistent with the objectives of para-
graph (1), determine the type of data center 
and data center equipment and facilities to be 
covered under such program; and 
(B) include specifications, measurements, 
and benchmarks that will enable data center op-
erators to make more informed decisions about 
the energy efficiency and costs of data centers, 
and that— 
(i) reflect the total energy consump-
tion of data centers, including both equip-
ment and facilities, taking into account— 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
117 
(I) the performance and utiliza-
tion of servers, data storage devices, 
and 
other 
information 
technology 
equipment; 
(II) the efficiency of heating, 
ventilation, and air conditioning, cool-
ing, and power conditioning systems; 
(III) energy savings from the 
adoption of software and data man-
agement techniques; and 
(IV) other factors determined by 
the organization described in sub-
section (b); 
(ii) allow for creation of separate 
specifications, measurements, and bench-
marks based on data center size and func-
tion, as well as other appropriate charac-
teristics determined by the organization 
described in subsection (b); 
(iii) advance the design and imple-
mentation of efficiency technologies to the 
maximum extent economically practical; 
and 
(iv) provide to data center operators 
in the private sector and the Federal Gov-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00117
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
118 
ernment information about best practices 
and purchasing decisions that reduce the 
energy consumption of data centers; 
(C) publish the information described in 
subparagraph (B), which may be disseminated 
through catalogs, trade publications, the Inter-
net, or other mechanisms, that will allow data 
center operators to assess the energy consump-
tion and potential cost savings of alternative 
data centers and data center equipment and fa-
cilities; and 
(D) not later than 1 year after the date of 
enactment of this Act, and thereafter on an on-
going basis, transmit the information described 
in subparagraph (B) to the Secretary and the 
Administrator. 
(3) Such program shall be developed and co-
ordinated by the data center efficiency organization 
described in subsection (b) according to commonly 
accepted procedures for the development of specifica-
tions, measurements, and benchmarks. 
(b) DATA CENTER EFFICIENCY ORGANIZATION.— 
Upon creation of the program under subsection (a), the 
Secretary and the Administrator shall jointly designate an 
information technology industry organization to coordi-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00118
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
119 
nate the program. Such organization, whether preexisting 
or formed specifically for the purposes of subsection (a), 
shall— 
(1) consist of interested parties that have exper-
tise in energy efficiency and in the development, op-
eration, and functionality of computer data centers, 
information technology equipment, and software, as 
well as representatives of hardware manufacturers, 
data center operators, and facility managers; 
(2) obtain and address input from Department 
of Energy National Laboratories or any college, uni-
versity, research institution, industry association, 
company, or public interest group with applicable ex-
pertise in any of the areas listed in paragraph (1) 
of this subsection; 
(3) follow commonly accepted procedures for 
the development of specifications and accredited 
standards development processes; 
(4) have a mission to develop and promote en-
ergy efficiency for data centers and information 
technology; and 
(5) have the primary responsibility to oversee 
the development and publishing of the information, 
measurements, and benchmarks described in sub-
section (a) and transmission of such information to 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00119
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
120 
the Secretary and the Administrator for their adop-
tion under subsection (c). 
(c) ADOPTION OF SPECIFICATIONS.—The Secretary 
and the Administrator shall jointly, in accordance with the 
requirements of section 12(d) of the National Technology 
Transfer Advancement Act of 1995, adopt and publish the 
specifications, measurements, and benchmarks described 
in subsection (a) for use by the Federal Energy Manage-
ment Program and the Energy Star program as energy 
efficiency requirements for the purposes of those pro-
grams. 
(d) MONITORING.—The Secretary and the Adminis-
trator shall jointly monitor and evaluate the efforts to de-
velop the program described in subsection (a) and, not 
later than 3 years after the date of enactment of this Act, 
shall make a determination as to whether such program 
is consistent with the objectives of subsection (a). 
(e) ALTERNATIVE SYSTEM.—If the Secretary and the 
Administrator make a determination under subsection (d) 
that a voluntary national information program for data 
centers consistent with the objectives of subsection (a) has 
not been developed, the Secretary and the Administrator 
shall jointly, after consultation with the National Institute 
of Standards and Technology, develop, not later than 2 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00120
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
121 
years after such determination, and implement the pro-
gram under subsection (a). 
(f) PROTECTION OF PROPRIETARY INFORMATION.— 
The Secretary, the Administrator, or the data center effi-
ciency organization shall not disclose any proprietary in-
formation or trade secrets provided by any individual or 
company for the purposes of carrying out this program. 
(g) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘data center’’ means any facility 
that primarily contains electronic equipment used to 
process, store, and transmit digital information, 
which may be— 
(A) a free-standing structure; or 
(B) a facility within a larger structure, 
that utilizes environmental control equipment to 
maintain the proper conditions for the oper-
ation of electronic equipment. 
(2) The term ‘‘data center operator’’ means any 
person or government entity that builds or operates 
a data center or purchases data center services, 
equipment, and facilities. 
SEC. 151. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—In addition to amounts authorized 
under subsections (b), (c), and (d), there are authorized 
to be appropriated to carry out this subtitle— 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
122 
(1) $10,000,000 for fiscal year 2008; and 
(2) $20,000,000 for each of the fiscal years 
2009 through 2014, to remain available until ex-
pended. 
(b) ZERO-ENERGY COMMERCIAL BUILDINGS INITIA-
TIVE.—There are authorized to be appropriated to carry 
out the initiative described in section 143— 
(1) $20,000,000 for fiscal year 2008; 
(2) $50,000,000 for each of fiscal years 2009 
and 2010; 
(3) $100,000,000 for each of fiscal years 2011 
and 2012; and 
(4) $200,000,000 for each of fiscal years 2013 
through 2050. 
(c) DEMONSTRATION PROJECTS.— 
(1) FEDERAL
DEMONSTRATION
PROJECT.— 
There are authorized to be appropriated to carry out 
the Federal demonstration project described in sec-
tion 149(b)(1) $10,000,000 for the period of fiscal 
years 2009 through 2014, to remain available until 
expended. 
(2) UNIVERSITY DEMONSTRATION PROJECTS.— 
There are authorized to be appropriated to carry out 
the university demonstration projects described in 
section 149(b)(2) $10,000,000 for the period of fis-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
123 
cal years 2009 through 2014, to remain available 
until expended. 
(d) ENERGY EFFICIENCY FOR DATA CENTER BUILD-
INGS.—There are authorized to be appropriated to each 
of the Secretary and the Administrator for carrying out 
section 150 $250,000 for each of the fiscal years 2008 
through 2012. 
SEC. 152. STUDY AND REPORT ON USE OF POWER MANAGE-
MENT SOFTWARE. 
(a) STUDY.—The Secretary of Energy, through the 
Federal Energy Management Program, shall conduct a 
study on the use of power management software by the 
Department of Energy and Federal facilities to reduce the 
use of electricity in computer monitors and personal com-
puters. 
(b) REPORT.—Not later than 60 days after the date 
of enactment of the Act, the Secretary shall submit to 
Congress a report containing the results of the study 
under subsection (a), including a description of the rec-
ommendations developed under the study. The Secretary 
and the Federal Energy Management Program are en-
couraged to draw upon similar studies and efforts by other 
Federal entities on power management software. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
124 
Subtitle E—Industrial Energy 
Efficiency 
SEC. 161. INDUSTRIAL ENERGY EFFICIENCY. 
(a) AMENDMENT.—Title III of the Energy Conserva-
tion and Policy Act (42 U.S.C. 6201 and following) is 
amended by adding the following after part D: 
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY 
‘‘SEC. 371. SURVEY OF WASTE INDUSTRIAL ENERGY RECOV-
ERY AND POTENTIAL USE. 
‘‘Congress finds that— 
‘‘(1) the Nation should encourage the use of 
otherwise wasted energy and the development of 
combined heat and power and other waste energy re-
covery projects where there is wasted thermal energy 
in large volumes at potentially useful temperatures; 
‘‘(2) such projects would increase energy effi-
ciency and lower pollution by generating power with 
no incremental fossil fuel consumption; 
‘‘(3) because recovered waste energy and com-
bined heat and power projects are associated with 
end-uses of thermal energy and electricity at the 
local level, they help avoid new transmission lines, 
reduce line losses, reduce local air pollutant emis-
sions, and reduce vulnerability to extreme weather 
and terrorism; and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
125 
‘‘(4) States, localities, electric utilities, and 
other electricity customers may benefit from private 
investments in recovered waste energy and combined 
heat and power projects at industrial and commer-
cial sites by avoiding generation, transmission and 
distribution expenses, and transmission line loss ex-
penses that may otherwise be required to be recov-
ered from ratepayers. 
‘‘SEC. 372. DEFINITIONS. 
‘‘For purposes of this Part: 
‘‘(1) The term ‘Administrator’ means the Ad-
ministrator of the Environmental Protection Agency. 
‘‘(2) The term ‘waste energy’ means— 
‘‘(A) exhaust heat and flared gases from 
any industrial process; 
‘‘(B) waste gas or industrial tail gas that 
would otherwise be flared, incinerated or vent-
ed; 
‘‘(C) a pressure drop in any gas, excluding 
any pressure drop to a condenser that subse-
quently vents the resulting heat; and 
‘‘(D) such other forms of waste energy as 
the Administrator may identify. 
‘‘(3) The term ‘recoverable waste energy’ means 
waste energy from which electricity or useful ther-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
126 
mal energy may be recovered through modification 
of existing facilities or addition of new facilities. 
‘‘(4) The term ‘net excess power’ means, for 
any facility, recoverable waste energy recovered in 
the form of electricity in amounts exceeding the total 
consumption of electricity at the specific time of gen-
eration on the site where the facility is located. 
‘‘(5) The term ‘useful thermal energy’ is energy 
in the forms of direct heat, steam, hot water, or 
other thermal forms that is used in production and 
beneficial measures for heating, cooling, humidity 
control, process use, or other valid thermal end-use 
energy requirements, and for which fuel or elec-
tricity would otherwise be consumed. 
‘‘(6) The term ‘combined heat and power sys-
tem’ means a facility— 
‘‘(A) that simultaneously and efficiently 
produces useful thermal energy and electricity; 
and 
‘‘(B) that recovers not less than 60 percent 
of the energy value in the fuel (on a lower-heat-
ing-value basis) in the form of useful thermal 
energy and electricity. 
‘‘(7) The terms ‘electric utility’, ‘State regu-
lated electric utility’, ‘nonregulated electric utility’ 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
127 
and other terms used in this Part have the same 
meanings as when such terms are used in title I of 
the Public Utility Regulatory Policies Act of 1978 
(relating to retail regulatory policies for electric utili-
ties). 
‘‘SEC. 373. SURVEY AND REGISTRY. 
‘‘(a) RECOVERABLE
WASTE-ENERGY
INVENTORY 
PROGRAM.—The Administrator, in cooperation with State 
energy offices, shall establish a Recoverable Waste-Energy 
Inventory Program. The program shall include an ongoing 
survey of all major industrial and large commercial com-
bustion sources in the United States and the sites where 
these are located, together with a review of each for quan-
tity and quality of waste energy. 
‘‘(b) CRITERIA.—The Administrator shall, within 120 
days after the enactment of this section, develop and pub-
lish proposed criteria subject to notice and comment, and 
within 270 days of enactment, establish final criteria, to 
identify and designate those sources and sites in the inven-
tory under subsection (a) where recoverable waste energy 
projects or combined heat and power system projects may 
have economic feasibility with a payback of invested costs 
within 5 years or less from the date of first full project 
operation (including incentives offered under this Part). 
Such criteria will include standards that insure that 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
128 
projects proposed for inclusion in the Registry are not de-
veloped for the primary purpose of making sales of excess 
electric power under the regulatory treatment provided 
under this Part. 
‘‘(c) TECHNICAL SUPPORT.—The Administrator shall 
provide to owners or operators of combustion sources tech-
nical support and offer partial funding (up to one-half of 
total costs) for feasibility studies to confirm whether or 
not investment in recovery of waste energy or combined 
heat and power at that source would offer a payback pe-
riod of 5 years or less. 
‘‘(d) REGISTRY.—(1) The Administrator shall, within 
one year after the enactment of this section, establish a 
Registry of Recoverable Waste-energy Sources, and sites 
on which those sources are located, which meet the criteria 
set forth under subsection (b). The Administrator shall 
update the Registry on not less than a monthly basis, and 
make the Registry accessible to the public on the Environ-
mental Protection Agency web site. Any State or electric 
utility may contest the listing of any source or site by sub-
mitting a petition to the Administrator. 
‘‘(2) The Administrator shall register and include on 
the Registry all sites meeting the criteria of subsection (b). 
The Administrator shall calculate the total amounts of po-
tentially recoverable waste energy from sources at such 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
129 
sites, nationally and by State, and shall make such totals 
public, together with information on the air pollutant and 
greenhouse gas emissions savings that might be achieved 
with recovery of the waste energy from all sources and 
sites listed in the Registry. 
‘‘(3) The Administrator shall notify owners or opera-
tors of Recoverable Waste-Energy Sources and sites listed 
in the Registry prior to publishing the listing. The owner 
or operator of sources at such sites may elect to have de-
tailed quantitative information concerning that site not 
made public by notifying the Administrator of that elec-
tion. Information concerning that site shall be included in 
State totals unless there are fewer than 3 sites in the 
State. 
‘‘(4) As waste energy projects achieve successful re-
covery of waste energy, the Administrator shall remove the 
related sites or sources from the Registry, and shall des-
ignate the removed projects as eligible for the incentive 
provisions provided under this Part and the regulatory 
treatment required by this Part. No project shall be re-
moved from the Registry without the consent of the owner 
or operator of the project if the owner or operator has 
submitted a petition under section 375 and such petition 
has not been acted upon or denied. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00129
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
130 
‘‘(5) The Administrator shall not list any source con-
structed after the date of the enactment of this Part on 
the Registry if the Administrator determines that such 
source— 
‘‘(A) was developed for the primary purpose of 
making sales of excess electric power under the reg-
ulatory treatment provided under this Part; or 
‘‘(B) does not capture at least 60 percent of the 
total energy value of the fuels used (on a lower-heat-
ing-value basis) in the form of useful thermal en-
ergy, electricity, mechanical energy, chemical output, 
or some combination of them. 
‘‘(e) SELF-CERTIFICATION.—Owners, operators, or 
third-party developers of industrial waste-energy projects 
that qualify under standards established by the Adminis-
trator may self-certify their sites or sources to the Admin-
istrator for inclusion in the Registry, subject to procedures 
adopted by the Administrator. To prevent a fraudulent 
listing, the sources shall be included on the Registry only 
if the Administrator confirms the submitted data, at the 
Administrator’s discretion. 
‘‘(f) NEW FACILITIES.—As a new energy-consuming 
industrial facility is developed after the enactment of this 
Part, to the extent it may constitute a site with recover-
able waste energy that may qualify for the Registry, the 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00130
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
131 
Administrator may elect to include it in the Registry at 
the request of its owner or operator or developer on a con-
ditional basis, removing the site if its development ceases 
or it if fails to qualify for listing under this Part. 
‘‘(g) OPTIMUM MEANS OF RECOVERY.—For each site 
listed in the Registry, at the request of the owner or oper-
ator of the site, the Administrator shall offer, in coopera-
tion with Clean Energy Application Centers operated by 
the Secretary of Energy, suggestions of optimum means 
of recovery of value from waste energy stream in the form 
of electricity, useful thermal energy, or other energy-re-
lated products. 
‘‘(h) REVISION.—Each annual State report under 
section 548(a) of the National Energy Conservation Policy 
Act shall include the results of the survey for that State 
under this section. 
‘‘(i) AUTHORIZATION.—There are authorized to be 
appropriated to the Administrator for the purposes of cre-
ating and maintaining the Registry and services author-
ized by this section not more than $1,000,000 for each 
of fiscal years 2008, 2009, 2010, 2010, and 2012 and not 
more than $5,000,000 to the States to provide funding 
for State energy office functions under this section. 
VerDate Aug 31 2005 
03:23 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00131
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
132 
‘‘SEC. 374. WASTE ENERGY RECOVERY INCENTIVE GRANT 
PROGRAM. 
‘‘(a) ESTABLISHMENT OF PROGRAM.—There is es-
tablished in the Environmental Protection Agency a Waste 
Energy Recovery Incentive Grant Program to provide in-
centive grants to owners and operators of projects that 
successfully produce electricity or incremental useful ther-
mal energy from waste energy recovery (and to utilities 
purchasing or distributing such electricity) and to reward 
States that have achieved 80 percent or more of identified 
waste-heat recovery opportunities. 
‘‘(b) GRANTS TO PROJECTS AND UTILITIES.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
make grants to the owners or operators of waste en-
ergy recovery projects, and, in the case of excess 
power purchased or transmitted by a electric utility, 
to such utility. Grants may only be made upon re-
ceipt of proof of waste energy recovery or excess 
electricity generation, or both, from the project in a 
form prescribed by the Administrator, by rule. 
‘‘(2) EXCESS ELECTRIC ENERGY.—In the case 
of waste energy recovery, the grants under this sec-
tion shall be made at the rate of $10 per megawatt 
hour of documented electricity produced from recov-
ered waste energy (or by prevention of waste energy 
in the case of a new facility) by the project during 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00132
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
133 
the first 3 calendar years of such production, begin-
ning on or after the date of enactment of this Part. 
If the project produces net excess power and an elec-
tric utility purchases or transmits the excess power, 
50 percent of so much of such grant as is attrib-
utable to the net excess power shall be paid to the 
electric utility purchasing or transporting the net ex-
cess power. 
‘‘(3) USEFUL THERMAL ENERGY.—In the case 
of waste energy recovery that produces useful ther-
mal energy that is used for a purpose different from 
that for which the project is principally designed, the 
grants under this section shall be made to the owner 
or operator of the waste energy recovery project at 
the rate of $10 for each 3,412,000 Btus of such ex-
cess thermal energy used for such different purpose. 
‘‘(c) GRANTS TO STATES.—In the case of States that 
have achieved 80 percent or more of waste-heat recovery 
opportunities identified by the Administrator under this 
Part, the Administrator shall make grants to the States 
of up to $1,000 per Megawatt of waste-heat capacity re-
covered (or its thermal equivalent) to support State-level 
programs to identify and achieve additional energy effi-
ciency. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00133
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
134 
‘‘(d) ELIGIBILITY.—The Administrator shall estab-
lish rules and guidelines to establish eligibility for grants, 
shall make the grant program known to those listed in 
the Registry, and shall offer such grants on the basis of 
the merits of each project in recovering or preventing 
waste energy throughout the United States on an impar-
tial, objective, and not unduly discriminatory basis. 
‘‘(e) AUTHORIZATION.—(1) There is authorized to be 
appropriated to the Administrator $100,000,000 for fiscal 
year 2008, and $200,000,000 for each of fiscal years 
2009, 2010, 2011, and 2012 for grants under subsection 
(b) of this section, and such additional amounts during 
those years and thereafter as may be necessary for admin-
istration of the Waste Energy Recovery Incentive Grant 
Program. 
‘‘(2) There is authorized to be appropriated to the 
Administrator not more than $10,000,000 for each of the 
first five fiscal years after the enactment of this Part, to 
be available until expended for purposes of grants to 
States under subsection (c). 
‘‘SEC. 375. ADDITIONAL INCENTIVES FOR RECOVERY, UTILI-
ZATION AND PREVENTION OF INDUSTRIAL 
WASTE ENERGY. 
‘‘(a) CONSIDERATION
OF
STANDARD.—Not later 
than 180 days after the receipt by a State regulatory au-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00134
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
135 
thority (with respect to each electric utility for which it 
has ratemaking authority), or nonregulated electric utility, 
of a request from a project sponsor or owner or operator, 
the State regulatory authority or nonregulated electric 
utility shall provide public notice and conduct a hearing 
respecting the standard established by subsection (b) and, 
on the basis of such hearing, shall consider and make a 
determination whether or not it is appropriate to imple-
ment such standard to carry out the purposes of this Part. 
For purposes of any such determination and any review 
of such determination in any court the purposes of this 
section supplement otherwise applicable State law. Noth-
ing in this Part prohibits any State regulatory authority 
or nonregulated electric utility from making any deter-
mination that it is not appropriate to adopt any such 
standard, pursuant to its authority under otherwise appli-
cable State law. 
‘‘(b) STANDARD FOR SALES OF EXCESS POWER.— 
For purposes of this section, the standard referred to in 
subsection (a) shall provide that an owner or operator of 
a waste energy recovery project identified on the Registry 
who generates net excess power shall be eligible to benefit 
from at least one of the options described in subsection 
(c) for disposal of the net excess power in accordance with 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00135
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
136 
the rate conditions and limitations described in subsection 
(d). 
‘‘(c) OPTIONS.—The options referred to in subsection 
(b) are as follows: 
‘‘(1) SALE OF NET EXCESS POWER TO UTIL-
ITY.—The electric utility shall purchase the net ex-
cess power from the owner or operator of the eligible 
waste-energy recovery project during the operation 
of the project under a contract entered into for that 
purpose. 
‘‘(2) TRANSPORT BY UTILITY FOR DIRECT SALE 
TO THIRD PARTY.—The electric utility shall transmit 
the net excess power on behalf of the project owner 
or operator to up to three separate locations on that 
utility’s system for direct sale by that owner or oper-
ator to third parties at such locations. 
‘‘(3) TRANSPORT OVER PRIVATE TRANSMISSION 
LINES.—The State and the electric utility shall per-
mit, and shall waive or modify such laws as would 
otherwise prohibit, the construction and operation of 
private electric wires constructed, owned and oper-
ated by the project owner or operator, to transport 
such power to up to 3 purchasers within a 3-mile ra-
dius of the project, allowing such wires to utilize or 
cross public rights-of-way, without subjecting the 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
137 
project to regulation as a public utility, and accord-
ing such wires the same treatment for safety, zon-
ing, land-use and other legal privileges as apply or 
would apply to the utility’s own wires, except that— 
‘‘(A) there shall be no grant of any power 
of eminent domain to take or cross private 
property for such wires, and 
‘‘(B) such wires shall be physically seg-
regated and not interconnected with any portion 
of the utility’s system, except on the customer’s 
side of the utility’s revenue meter and in a 
manner that precludes any possible export of 
such electricity onto the utility system, or dis-
ruption of such system. 
‘‘(4) AGREED UPON ALTERNATIVES.—The util-
ity and the owner or operator of the project may 
reach agreement on any alternate arrangement and 
its associated payments or rates that is mutually 
satisfactory and in accord with State law. 
‘‘(d) RATE CONDITIONS AND CRITERIA.— 
‘‘(1) IN GENERAL.—The options described in 
paragraphs (1) and (2) in subsection (c) shall be of-
fered under purchase and transport rate conditions 
reflecting the rate components defined under para-
graph (2) of this subsection as applicable under the 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
138 
circumstances described in paragraph (3) of this 
subsection. 
‘‘(2) RATE COMPONENTS.—For purposes of this 
section: 
‘‘(A) PER
UNIT
DISTRIBUTION
COSTS.— 
The term ‘per unit distribution costs’ means the 
utility’s depreciated book-value distribution sys-
tem costs divided by the previous year’s volume 
of utility electricity sales or transmission at the 
distribution level in kilowatt hours. 
‘‘(B) PER UNIT DISTRIBUTION MARGIN.— 
The term ‘per unit distribution margin’ means: 
‘‘(i) In the case of a State regulated 
electric utility, a per-unit gross pretax 
profit determined by multiplying the util-
ity’s State-approved percentage rate of re-
turn for distribution system assets by the 
per unit distribution costs. 
‘‘(ii) In the case of an nonregulated 
utility, a per unit contribution to net reve-
nues determined by dividing the amount of 
any net revenue payment or contribution 
to the nonregulated utility’s owners or sub-
scribers in the prior year by the utility’s 
gross revenues for the prior year to obtain 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00138
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
139 
a percentage (but not less than 10 percent) 
and multiplying that percentage by the per 
unit distribution costs. 
‘‘(C) PER
UNIT
TRANSMISSION
COSTS.— 
The term ‘per unit transmission costs’ means 
the total cost of those transmission services 
purchased or provided by a utility on a per-kilo-
watt-hour basis as included in that utility’s re-
tail rate. 
‘‘(3) APPLICABLE RATES.— 
‘‘(A) RATES APPLICABLE TO SALE OF NET 
EXCESS
POWER.—Sales made by a project 
owner or operator under the option described in 
subsection (c) (1) shall be paid for on a per kil-
owatt hour basis that shall equal the full 
undiscounted retail rate paid to the utility for 
power purchased by such a facility minus per 
unit distribution costs, as applicable to the type 
of utility purchasing the power. If the net ex-
cess power is made available for purchase at 
voltages that must be transformed to or from 
voltages exceeding 25 kilovolts to be available 
for resale by the utility, then the purchase price 
shall further be reduced by per unit trans-
mission costs. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
140 
‘‘(B) RATES APPLICABLE TO TRANSPORT 
BY UTILITY FOR DIRECT SALE TO THIRD PAR-
TIES.—Transportation by utilities of power on 
behalf of the owner or operator of a project 
under the option described in subsection (c)(2) 
shall incur a transportation rate equal to the 
per unit distribution costs and per unit dis-
tribution margin, as applicable to the type of 
utility transporting the power. If the net excess 
power is made available for transportation at 
voltages that must be transformed to or from 
voltages exceeding 25 kilovolts to be trans-
ported to the designated third-party purchasers, 
then the transport rate shall further be in-
creased by per unit transmission costs. In 
States with competitive retail markets for elec-
tricity, the applicable transportation rate for 
similar transportation shall be applied in lieu of 
any rate calculated under this paragraph. 
‘‘(4) LIMITATIONS.—(A) Any rate established 
for sale or transportation under this section shall be 
modified over time with changes in the electric util-
ity’s underlying costs or rates, and shall reflect the 
same time-sensitivity and billing periods as are es-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
141 
tablished in the retail sales or transportation rates 
offered by the utility. 
‘‘(B) No utility shall be required to purchase or 
transport an amount of net excess power under this 
section that exceeds the available capacity of the 
wires, meter, or other equipment of the electric util-
ity serving the site unless the owner or operator of 
the project agrees to pay necessary and reasonable 
upgrade costs. 
‘‘(e) PROCEDURAL REQUIREMENTS FOR CONSIDER-
ATION AND DETERMINATION.—(1) The consideration re-
ferred to in subsection (b) shall be made after public no-
tice and hearing. The determination referred to in sub-
section (b) shall be— 
‘‘(A) in writing, 
‘‘(B) based upon findings included in such de-
termination and upon the evidence presented at the 
hearing, and 
‘‘(C) available to the public. 
‘‘(2) The Administrator may intervene as a matter 
of right in a proceeding conducted under this section and 
may calculate the energy and emissions likely to be saved 
by electing to adopt one or more of the options, as well 
as the costs and benefits to ratepayers and the utility and 
to advocate for the waste-energy recovery opportunity. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
142 
‘‘(3) Except as otherwise provided in paragraph (1), 
and paragraph (2), the procedures for the consideration 
and determination referred to in subsection (a) shall be 
those established by the State regulatory authority or the 
nonregulated electric utility. In the instance that there is 
more than one project seeking such consideration simulta-
neously in connection with the same utility, such pro-
ceeding may encompass all such projects, provided that 
full attention is paid to their individual circumstances and 
merits, and an individual judgment is reached with respect 
to each project. 
‘‘(f) IMPLEMENTATION.—(1) The State regulatory 
authority (with respect to each electric utility for which 
it has ratemaking authority) or nonregulated electric util-
ity may, to the extent consistent with otherwise applicable 
State law— 
‘‘(A) implement the standard determined under 
this section, or 
‘‘(B) decline to implement any such standard. 
‘‘(2) If a State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
or nonregulated electric utility declines to implement any 
standard established by this section, such authority or 
nonregulated electric utility shall state in writing the rea-
sons therefor. Such statement of reasons shall be available 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
143 
to the public, and the Administrator shall include the 
project in an annual report to Congress concerning lost 
opportunities for waste-heat recovery, specifically identi-
fying the utility and stating the amount of lost energy and 
emissions savings calculated. If a State regulatory author-
ity (with respect to each electric utility for which it has 
ratemaking authority) or nonregulated electric utility de-
clines to implement the standard established by this sec-
tion, the project sponsor may submit a new petition under 
this section with respect to such project at any time after 
24 months after the date on which the State regulatory 
authority or nonregulated utility has declined to imple-
ment such standard. 
‘‘SEC. 376. CLEAN ENERGY APPLICATION CENTERS. 
‘‘(a) PURPOSE.—The purpose of this section is to re-
name and provide for the continued operation of the 
United States Department of Energy’s Regional Com-
bined Heat and Power (CHP) Application Centers. 
‘‘(b) FINDINGS.—The Congress finds the Depart-
ment of Energy’s Regional Combined Heat and Power 
(CHP) Application Centers program has produced signifi-
cant energy savings and climate change benefits and will 
continue to do so through the deployment of clean energy 
technologies such as Combined Heat and Power (CHP), 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00143
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
144 
recycled waste energy and biomass energy systems, in the 
industrial and commercial energy markets. 
‘‘(c) RENAMING.—The Combined Heat and Power 
Application Centers at the Department of Energy are 
hereby be redesignated as Clean Energy Application Cen-
ters. Any reference in any law, rule or regulation or publi-
cation to the Combined Heat and Power Application Cen-
ters shall be treated as a reference to the Clean Energy 
Application Centers. 
‘‘(d) RELOCATION.—In order to better coordinate ef-
forts with the separate Industrial Assessment Centers and 
to assure that the energy efficiency and, when applicable, 
the renewable nature of deploying mature clean energy 
technology is fully accounted for, the Secretary of Energy 
shall relocate the administration of the Clean Energy Ap-
plication Centers to the Office of Energy Efficiency and 
Renewable Energy within the Department of Energy. The 
Office of Electricity Delivery and Energy Reliability shall 
continue to perform work on the role of such technology 
in support of the grid and its reliability and security, and 
shall assist the Clean Energy Application Centers in their 
work with regard to the grid and with electric utilities. 
‘‘(e) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary of Energy 
shall make grants to universities, research centers, 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00144
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
145 
and other appropriate institutions to assure the con-
tinued operations and effectiveness of 8 Regional 
Clean Energy Application Centers in each of the fol-
lowing regions (as designated for such purposes as 
of the date of the enactment of this section): 
‘‘(A) Gulf Coast. 
‘‘(B) Intermountain. 
‘‘(C) Mid-Atlantic. 
‘‘(D) Midwest. 
‘‘(E) Northeast. 
‘‘(F) Northwest. 
‘‘(G) Pacific. 
‘‘(H) Southeast. 
‘‘(2) ESTABLISHMENT OF GOALS AND COMPLI-
ANCE.—In making grants under this section, the 
Secretary shall ensure that sufficient goals are es-
tablished and met by each Center throughout the 
program duration concerning outreach and tech-
nology deployment. 
‘‘(f) ACTIVITIES.—Each Clean Energy Application 
Center shall operate a program to encourage deployment 
of clean energy technologies through education and out-
reach to building and industrial professionals, and to other 
individuals and organizations with an interest in efficient 
energy use. In addition, the Centers shall provide project 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00145
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
146 
specific support to building and industrial professionals 
through assessments and advisory activities. Funds made 
available under this section may be used for the following 
activities: 
‘‘(1) Developing and distributing informational 
materials on clean energy technologies, including 
continuation of the eight existing Web sites. 
‘‘(2) Developing and conducting target market 
workshops, seminars, internet programs and other 
activities to educate end users, regulators, and 
stakeholders in a manner that leads to the deploy-
ment of clean energy technologies. 
‘‘(3) Providing or coordinating onsite assess-
ments for sites and enterprises that may consider 
deployment of clean energy technology. 
‘‘(4) Performing market research to identify 
high profile candidates for clean energy deployment. 
‘‘(5) Providing consulting support to sites con-
sidering deployment of clean energy technologies. 
‘‘(6) Assisting organizations developing clean 
energy technologies to overcome barriers to deploy-
ment. 
‘‘(7) Assisting companies and organizations 
with performance evaluations of any clean energy 
technology implemented. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00146
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
147 
‘‘(g) DURATION.—A grant awarded under this sec-
tion shall be for a period of 5 years. Each grant shall be 
evaluated annually for its continuation based on its activi-
ties and results. 
‘‘(h) AUTHORIZATION.—There is authorized to be ap-
propriated for purposes of this section the sum of 
$10,000,000 for each of fiscal years 2008, 2009, 2010, 
2011, and 2012.’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
such Act is amended by inserting the following after the 
items relating to part D of title III: 
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY 
‘‘Sec. 371. Survey of waste industrial energy recovery and potential use. 
‘‘Sec. 372. Definitions. 
‘‘Sec. 373. Survey and registry. 
‘‘Sec. 374. Incentives for recovery, utilization and prevention of industrial waste 
energy. 
‘‘Sec. 375. Clean Energy Application Centers.’’. 
Subtitle F—Energy Efficiency of 
Public Institutions 
SEC. 171. SHORT TITLE. 
This subtitle may be cited as the ‘‘Sustainable En-
ergy Institutional Infrastructure Act of 2007’’. 
SEC. 172. FINDINGS. 
The Congress finds the following: 
(1) Many institutional entities own and operate, 
or are served by, district energy systems. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00147
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
148 
(2) A variety of renewable energy resources 
could be tapped by governmental and institutional 
energy systems to meet energy requirements. 
(3) Use of these renewable energy resources to 
meet energy requirements will reduce reliance on 
fossil fuels and the associated emissions of air pollu-
tion and carbon dioxide. 
(4) CHP is a highly efficient and environ-
mentally beneficial means to generate electric energy 
and heat, and offers total efficiency much greater 
than conventional separate systems, where electric 
energy is generated at and transmitted long dis-
tances from a centrally located generation facility, 
and onsite heating and cooling equipment is used to 
meet nonelectric energy requirements. 
(5) Heat recovered in a CHP generation system 
can be used for space heating, domestic hot water, 
or process steam requirements, or can be converted 
to cooling energy to meet air conditioning require-
ments. 
(6) The increased efficiency of CHP results in 
reduction in emissions of air pollution and carbon di-
oxide. 
(7) District energy systems represent a key op-
portunity for expanding implementation of CHP be-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00148
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
149 
cause district energy systems provide a means of de-
livering thermal energy from CHP to a substantial 
base of end users. 
(8) District energy systems help cut peak power 
demand and reduce power transmission and distribu-
tion system constraints by meeting air conditioning 
demand through delivery of chilled water produced 
with CHP-generated heat or other energy sources, 
shifting power demand through thermal storage, 
and, with CHP, generating power near load centers. 
(9) Evaluation and implementation of sustain-
able energy infrastructure is a complex undertaking 
involving a variety of technical, economic, legal, and 
institutional issues and barriers, and technical as-
sistance is often required to successfully navigate 
these barriers. 
(10) The major constraint to significant expan-
sion of sustainable energy infrastructure by institu-
tional entities is a lack of capital funding for imple-
mentation. 
SEC. 173. DEFINITIONS. 
For purposes of this subtitle— 
(1) the term ‘‘CHP’’ means combined heat and 
power, or the generation of electric energy and heat 
in a single, integrated system; 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00149
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
150 
(2) the term ‘‘district energy systems’’ means 
systems providing thermal energy to buildings and 
other energy consumers from one or more plants to 
individual buildings to provide space heating, air 
conditioning, domestic hot water, industrial process 
energy, and other end uses; 
(3) the term ‘‘institutional entities’’ means local 
governments, public school districts, municipal utili-
ties, State governments, Federal agencies, and other 
entities established by local, State, or Federal agen-
cies to meet public purposes, and public or private 
colleges, universities, airports, and hospitals; 
(4) the term ‘‘renewable thermal energy 
sources’’ means non-fossil-fuel energy sources, in-
cluding biomass, geothermal, solar, natural sources 
of cooling such as cold lake or ocean water, and 
other sources that can provide heating or cooling en-
ergy; 
(5) the term ‘‘sustainable energy infrastruc-
ture’’ means facilities for production of energy from 
CHP or renewable thermal energy sources and dis-
tribution of thermal energy to users; and 
(6) the term ‘‘thermal energy’’ means heating 
or cooling energy in the form of hot water or steam 
(heating energy) or chilled water (cooling energy). 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00150
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
151 
SEC. 174. TECHNICAL ASSISTANCE PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall, with funds appropriated for this purpose, implement 
a program of information dissemination and technical as-
sistance to institutional entities to assist them in identi-
fying, evaluating, designing, and implementing sustainable 
energy infrastructure. 
(b) INFORMATION DISSEMINATION.—The Secretary 
shall develop and disseminate information and assessment 
tools addressing— 
(1) identification of opportunities for sustain-
able energy infrastructure; 
(2) technical and economic characteristics of 
sustainable energy infrastructure; 
(3) utility interconnection, and negotiation of 
power and fuel contracts; 
(4) financing alternatives; 
(5) permitting and siting issues; 
(6) case studies of successful sustainable energy 
infrastructure systems; and 
(7) computer software for assessment, design, 
and operation and maintenance of sustainable en-
ergy infrastructure systems. 
(c) ELIGIBLE COSTS.—Upon application by an insti-
tutional entity, the Secretary may make grants to such 
applicant to fund— 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00151
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
152 
(1) 75 percent of the cost of feasibility studies 
to assess the potential for implementation or im-
provement of sustainable energy infrastructure; 
(2) 60 percent of the cost of guidance on over-
coming barriers to project implementation, including 
financial, contracting, siting, and permitting bar-
riers; and 
(3) 45 percent of the cost of detailed engineer-
ing and design of sustainable energy infrastructure. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$15,000,000 for fiscal year 2008, $15,000,000 for fiscal 
year 2009, and $15,000,000 for fiscal year 2010. 
SEC. 175. REVOLVING FUND. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall, with funds appropriated for this purpose, create a 
Sustainable Institutions Revolving Fund for the purpose 
of establishing and operating a Sustainable Institutions 
Revolving Fund (in this section referred to as the 
‘‘SIRF’’) for the purpose of providing loans for the con-
struction or improvement of sustainable energy infrastruc-
ture to serve institutional entities. 
(b) ELIGIBLE COSTS.—A loan provided from the 
SIRF shall be for no more than 70 percent of the total 
capital costs of a project, and shall not exceed 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00152
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
153 
$15,000,000. Such loans shall be for constructing sustain-
able energy infrastructure, including— 
(1) plant facilities used for producing thermal 
energy, electricity, or both; 
(2) facilities for storing thermal energy; 
(3) facilities for distribution of thermal energy; 
and 
(4) costs for converting buildings to use ther-
mal energy from sustainable energy sources. 
(c) QUALIFICATIONS.—Loans from the SIRF may be 
made to institutional entities for projects meeting the 
qualifications and conditions established by the Secretary, 
including the following minimum qualifications: 
(1) The project shall be technically and eco-
nomically feasible as determined by a detailed feasi-
bility analysis performed or corroborated by an inde-
pendent consultant. 
(2) The borrower shall demonstrate that ade-
quate and comparable financing was not found to be 
reasonably available from other sources, and that 
the project is economically more feasible with the 
availability of the SIRF loan. 
(3) The borrower shall obtain commitments for 
the remaining capital required to implement the 
project, contingent on approval of the SIRF loan. 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00153
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
154 
(4) The borrower shall provide to the Secretary 
reasonable assurance that all laborers and mechanics 
employed by contractors or subcontractors in the 
performance of construction work financed in whole 
or in part with a loan provided under this section 
will be paid wages at rates not less than those pre-
vailing on similar work in the locality as determined 
by the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States 
Code (commonly referred to as the Davis-Bacon 
Act). 
(d) FINANCING TERMS.—(1) Interest on a loan under 
this section may be a fixed rate or floating rate, and shall 
be equal to the Federal cost of funds consistent with the 
loan type and term, minus 1.5 percent. 
(2) Interest shall accrue from the date of the loan, 
but the first payment of interest shall be deferred, if de-
sired by the borrower, for a period ending not later than 
3 years after the initial date of operation of the system. 
(3) Interest attributable to the period of deferred 
payment shall be amortized over the remainder of the loan 
term. 
(4) Principal shall be repaid on a schedule established 
at the time the loan is made. Such payments shall begin 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00154
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
155 
not later than 3 years after the initial date of operation 
of the system. 
(5) Loans made from the SIRF shall be repayable 
over a period ending not more than 20 years after the 
date the loan is made. 
(6) Loans shall be prepayable at any time without 
penalty. 
(7) SIRF loans shall be subordinate to other loans 
for the project. 
(e) FUNDING CYCLES.—Applications for loans from 
the SIRF shall be received on a periodic basis at least 
semiannually. 
(f) APPLICATION OF REPAYMENTS FOR DEFICIT RE-
DUCTION.—Loans from the SIRF shall be made, with 
funds available for this purpose, during the 10 years start-
ing from the date that the first loan from the fund is 
made. Until this 10-year period ends, funds repaid by bor-
rowers shall be deposited in the SIRF to be made available 
for additional loans. Once loans from the SIRF are no 
longer being made, repayments shall go directly into the 
United States Treasury. 
(g) PRIORITIES.—In evaluating projects for funding, 
priority shall be given to projects which— 
(1) maximize energy efficiency; 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00155
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
156 
(2) minimize environmental impacts, including 
from regulated air pollutants, greenhouse gas emis-
sions, and the use of refrigerants known to cause 
ozone depletion; 
(3) use renewable energy resources; 
(4) maximize oil displacement; and 
(5) benefit economically-depressed areas. 
(h) REGULATIONS.—Not later than one year after 
the date of enactment of this Act, the Secretary of Energy 
shall develop a plan and adopt rules and procedures for 
establishing and operating the SIRF. 
(i) PROGRAM REVIEW.—Every two years the Sec-
retary shall report to the Congress on the status and 
progress of the SIRF. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$250,000,000 for fiscal year 2008 and $500,000,000 for 
each of the fiscal years 2009 through 2012. 
SEC. 176. REAUTHORIZATION OF STATE ENERGY PRO-
GRAMS. 
Section 365(f) of the Energy Policy and Conservation 
Act (42 U.S.C. 6325(f)) is amended by striking 
‘‘$100,000,000 for each of the fiscal years 2006 and 2007 
and $125,000,000 for fiscal year 2008’’ and inserting 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00156
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
157 
‘‘$125,000,000 for each of the fiscal years 2007, 2008, 
2009, 2010, 2011, and 2012’’. 
Subtitle G—Energy Savings 
Performance Contracting 
SEC. 181. DEFINITION OF ENERGY SAVINGS. 
Section 804(2) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287c(2)) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively, 
and indenting appropriately; 
(2) by striking ‘‘means a reduction’’ and insert-
ing ‘‘means— 
‘‘(A) a reduction’’; 
(3) by striking the period at the end and insert-
ing a semicolon; and 
(4) by adding at the end the following: 
‘‘(B) the increased efficient use of an exist-
ing energy source by cogeneration or heat re-
covery, and installation of renewable energy sys-
tems; 
‘‘(C) if otherwise authorized by Federal or 
State law (including regulations), the sale or 
transfer of electrical or thermal energy gen-
erated onsite but in excess of Federal needs, to 
utilities or non-Federal energy users; and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00157
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
158 
‘‘(D) the increased efficient use of existing 
water sources in interior or exterior applica-
tions.’’. 
SEC. 182. FINANCING FLEXIBILITY. 
Section 801(a)(2) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287(a)(2)) is amended by add-
ing at the end the following: 
‘‘(E) SEPARATE CONTRACTS.—In carrying out a con-
tract under this title, a Federal agency may— 
‘‘(i) enter into a separate contract for energy 
services and conservation measures under the con-
tract; and 
‘‘(ii) provide all or part of the financing nec-
essary to carry out the contract.’’. 
SEC. 183. AUTHORITY TO ENTER INTO CONTRACTS; RE-
PORTS. 
(a) AUTHORITY TO ENTER INTO CONTRACTS.—Sec-
tion 801(a)(2)(D) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended— 
(1) in clause (ii), by inserting ‘‘and’’ after the 
semicolon at the end; 
(2) by striking clause (iii); and 
(3) by redesignating clause (iv) as clause (iii). 
(b) REPORTS.—Section 548(a)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8258(a)(2))) 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00158
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
159 
is amended by inserting ‘‘and any termination penalty ex-
posure’’ after ‘‘the energy and cost savings that have re-
sulted from such contracts’’. 
(c) CONFORMING AMENDMENT.—Section 2913 of 
title 10, United States Code is amended by striking sub-
section (e). 
SEC. 184. PERMANENT REAUTHORIZATION. 
Section 801 of the National Energy Conservation 
Policy Act (42 U.S.C. 8287) is amended by striking sub-
section (c). 
SEC. 185. TRAINING FEDERAL CONTRACTING OFFICERS TO 
NEGOTIATE 
ENERGY 
EFFICIENCY 
CON-
TRACTS. 
(a) PROGRAM.—The Secretary of Energy shall create 
and administer in the Federal Energy Management Pro-
gram a training program to educate Federal contract ne-
gotiation and contract management personnel so that such 
contract officers are prepared to— 
(1) negotiate energy savings performance con-
tracts; 
(2) conclude effective and timely contracts for 
energy efficiency services with all companies offering 
energy efficiency services; and 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00159
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
160 
(3) review Federal contracts for all products 
and services for their potential energy efficiency op-
portunities and implications. 
(b) SCHEDULE.—The Federal Energy Management 
Program shall plan, staff, announce, and begin such train-
ing not later than one year after the date of enactment 
of this Act. 
(c) PERSONNEL TO BE TRAINED.—Personnel appro-
priate to receive such training shall be selected by and sent 
for such training from— 
(1) the Department of Defense; 
(2) the Department of Veterans Affairs; 
(3) the Department of Energy; 
(4) the General Services Administration; 
(5) the Department of Housing and Urban De-
velopment; 
(6) the United States Postal Service; and 
(7) all other Federal agencies and departments 
that enter contracts for buildings, building services, 
electricity and electricity services, natural gas and 
natural gas services, heating and air conditioning 
services, building fuel purchases, and other types of 
procurement or service contracts determined by Fed-
eral Energy Management Program to offer the po-
tential for energy savings and greenhouse gas emis-
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00160
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
161 
sion reductions if negotiated with such goals in 
mind. 
(d) TRAINERS.—Such training may be conducted by 
attorneys or contract officers with experience in negoti-
ating and managing such contracts from any agency, and 
the Department of Energy shall reimburse their related 
salaries and expenses from amounts appropriated for car-
rying out this section to the extent they are not already 
employees of the Department of Energy. Such training 
may also be provided by private experts hired by the De-
partment of Energy for the purposes of this section, except 
that the Department may not hire experts who are simul-
taneously employed by any company under contract to 
provide such energy efficiency services to the Federal Gov-
ernment. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $750,000 for each of 
fiscal years 2008 through 2012. 
SEC. 186. PROMOTING LONG-TERM ENERGY SAVINGS PER-
FORMANCE CONTRACTS AND VERIFYING SAV-
INGS. 
Section 801(a)(2) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287(a)(2)) is amended— 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00161
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
162 
(1) in subparagraph (D), by inserting ‘‘begin-
ning on the date of the delivery order’’ after ‘‘25 
years’’; and 
(2) by adding at the end the following: 
‘‘(F) PROMOTION OF CONTRACTS.—In car-
rying out this section, a Federal agency shall 
not— 
‘‘(i) establish a Federal agency policy 
that limits the maximum contract term 
under subparagraph (D) to a period short-
er than 25 years; or 
‘‘(ii) limit the total amount of obliga-
tions under energy savings performance 
contracts or other private financing of en-
ergy savings measures. 
‘‘(G) MEASUREMENT
AND
VERIFICATION 
REQUIREMENTS FOR PRIVATE FINANCING.— 
‘‘(i) IN
GENERAL.—The evaluations 
and savings measurement and verification 
required under paragraphs (1) and (3) of 
section 543(f) shall be used by a Federal 
agency to meet the requirements for— 
‘‘(I) in the case of energy savings 
performance contracts, the need for 
energy audits, calculation of energy 
VerDate Aug 31 2005 
01:44 Aug 05, 2007
Jkt 059200
PO 00000
Frm 00162
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
163 
savings, and any other evaluation of 
costs and savings needed to imple-
ment the guarantee of savings under 
this section; and 
‘‘(II) in the case of utility energy 
service contracts, needs that are simi-
lar to the purposes described in sub-
clause (I). 
‘‘(ii) MODIFICATION
OF
EXISTING 
CONTRACTS.—Not later than 180 days 
after the date of enactment of this sub-
paragraph, each Federal agency shall, to 
the maximum extent practicable, modify 
any indefinite delivery and indefinite quan-
tity energy savings performance contracts, 
and other indefinite delivery and indefinite 
quantity contracts using private financing, 
to conform to the amendments made by 
subtitle G of title I of the øEnergy Effi-
ciency Improvement Act of 2007¿.’’. 
Subtitle H—Advisory Committee on 
Energy Efficiency Financing 
SEC. 189. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Assistant Secretary of 
Energy for Energy Efficiency and Renewable Energy shall 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00163
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
164 
establish an advisory committee to provide advice and rec-
ommendations to the Department of Energy on energy ef-
ficiency finance and investment issues, options, ideas, and 
trends, and to assist the energy community in identifying 
practical ways of lowering costs and increasing invest-
ments in energy efficiency technologies. 
(b) MEMBERSHIP.—The advisory committee estab-
lished under this section shall have a balanced membership 
that shall include members representing the following 
communities: 
(1) Providers of seed capital. 
(2) Venture capitalists. 
(3) Private equity sources. 
(4) Investment banking corporate finance. 
(5) Investment banking mergers and acquisi-
tions. 
(6) Equity capital markets. 
(7) Debt capital markets. 
(8) Research analysts. 
(9) Sales and trading. 
(10) Commercial lenders. 
(11) Residential lenders. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00164
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
165 
necessary to the Secretary of Energy for carrying out this 
section. 
Subtitle I—Energy Efficiency Block 
Grant Program 
SEC. 191. DEFINITIONS. 
For purposes of this subtitle— 
(1) the term ‘‘eligible entity’’ means a State or 
an eligible unit of local government within a State; 
(2) the term ‘‘eligible unit of local government’’ 
means— 
(A) a city with a population of at least 
50,000; and 
(B) a county with a population of at least 
200,000; 
(3) the term ‘‘Secretary’’ means the Secretary 
of Energy; and 
(4) the term ‘‘State’’ means one of the 50 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, Guam, American Samoa, the United 
States Virgin Islands, the Commonwealth of the 
Northern Mariana Islands, and any other common-
wealth, territory, or possession of the United States. 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00165
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
166 
SEC. 192. ESTABLISHMENT OF PROGRAM. 
The Secretary shall establish an Energy Efficiency 
Block Grant Program to make block grants to eligible en-
tities as provided in this subtitle. 
SEC. 193. ALLOCATIONS. 
(a) IN GENERAL.—Of the funds appropriated for 
making grants under this subtitle for each fiscal year, the 
Secretary shall allocate 70 percent to be provided to eligi-
ble units of local government as provided in subsection (b) 
and 30 percent to be provided to States as provided in 
subsection (c). 
(b) ELIGIBLE UNITS OF LOCAL GOVERNMENT.—The 
Secretary shall provide grants to eligible units of local gov-
ernment according to a formula giving equal weight to— 
(1) population, according to the most recent 
available Census data; and 
(2) daytime population, or another similar fac-
tor such as square footage of commercial, office, and 
industrial space, as determined by the Secretary. 
(c) STATES.—The Secretary shall provide grants to 
States according to a formula based on population, accord-
ing to the most recent available Census data. 
(d) PUBLICATION OF ALLOCATION FORMULAS.—Not 
later than 90 days before the beginning of any fiscal year 
in which grants are to made under this subtitle, the Sec-
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00166
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
172 
(A) not more than 10 percent, or $75,000, 
whichever is greater, for administrative ex-
penses, not including expenses needed to meet 
reporting requirements under this subtitle; 
(B) not more than 20 percent, or 
$250,000, whichever is greater, for the estab-
lishment of revolving loan funds; and 
(C) not more than 20 percent, or 
$250,000, whichever is greater, for subgranting 
to nongovernmental organizations for the pur-
pose of assisting in the implementation of the 
Energy Efficiency Strategy. 
(5) ANNUAL REPORT.—Not later than 2 years 
after receipt of the first disbursement of funds from 
a grant awarded under this subtitle, and annually 
thereafter, an eligible unit of local government shall 
submit a report to the Secretary on the status of the 
Strategy’s development and implementation, and, 
where practicable, a best available assessment of en-
ergy efficiency gains within the jurisdiction of the el-
igible unit of local government. 
(b) REQUIREMENTS FOR STATES.— 
(1) ALLOCATION OF GRANT FUNDS.—A State 
receiving a grant under this subtitle shall use at 
least 70 percent of the funds received to provide 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00172
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
173 
subgrants to units of local government in the State 
that are not eligible units of local government. The 
State shall make such subgrant awards not later 
than 6 months after approval of the State’s Strategy 
under paragraph (3). 
(2) PROPOSED STRATEGY.—Not later than 120 
days the date of enactment of this subtitle, each 
State shall submit to the Secretary a proposed En-
ergy Efficiency Strategy which establishes a process 
for making subgrants described in paragraph (1), 
and establishes goals for increased energy efficiency 
in the jurisdiction of the State. The Strategy shall 
include plans for the use of funds received under a 
grant under this subtitle to assist the State in the 
achievement of such goals, consistent with section 
194. 
(3) APPROVAL.—The Secretary shall approve or 
disapprove a proposed Strategy submitted under 
paragraph (2) not later than 90 days after receiving 
it. If the Secretary disapproves a proposed Strategy, 
the Secretary shall provide to the State the reasons 
for such disapproval. The State may revise and re-
submit the Strategy, as many times as required, 
until approval is granted. 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00173
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
174 
(4) FUNDING
FOR
PREPARATION
OF
STRAT-
EGY.— 
(A) IN GENERAL.—Until the Secretary has 
approved a proposed Energy Efficiency Strat-
egy under paragraph (2), the Secretary shall 
only disburse to a State $200,000 or 20 percent 
of the grant, whichever is greater, which may 
be used only for preparation of the Strategy. 
(B) REMAINDER OF FUNDS.—The remain-
der of a State’s grant funds awarded but not 
disbursed under subparagraph (A) shall remain 
available and shall be disbursed by the Sec-
retary upon approval of the Strategy. 
(5) LIMITATIONS ON USE OF FUNDS.—Of the 
amounts provided through a grant under this sub-
title, a State may use not more than 10 percent for 
administrative expenses. 
(6) ANNUAL REPORTS.—A State shall annually 
report to the Secretary on the development and im-
plementation of its Strategy. Each such report shall 
include— 
(A) a status report on the State’s subgrant 
program described in paragraph (1); 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00174
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
175 
(B) a best available assessment of energy 
efficiency gains achieved through the State’s 
Strategy; and 
(C) specific energy efficiency and energy 
conservation goals for future years. 
(c) STATE AND LOCAL ADVISORY COMMITTEE.— 
(1) 
STATE
AND
LOCAL
ADVISORY
COM-
MITTEE.—The Secretary shall establish a State and 
Local Advisory Committee to provide advice regard-
ing the administration, direction, and evaluation of 
the program under this subtitle. 
SEC. 196. REVIEW AND EVALUATION. 
The Secretary may review and evaluate the perform-
ance of grant recipients, including by performing audits, 
and may deny funding to such grant recipients for failure 
to properly adhere to— 
(1) the Secretary’s guidelines and regulations 
relating to the program under this subtitle, including 
the misuse or misappropriation of funds; or 
(2) the grant recipient’s Strategy. 
SEC. 197. TECHNICAL ASSISTANCE AND EDUCATION PRO-
GRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
and carry out a technical assistance and education pro-
gram to provide— 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00175
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
176 
(1) technical assistance to State and local gov-
ernments; 
(2) public education programs; 
(3) demonstration of innovative energy effi-
ciency systems and practices; and 
(4) identification of effective measurement 
methodologies and methods for changing or influ-
encing public participation in, and awareness of, en-
ergy efficiency programs. 
(b) ELIGIBLE RECIPIENTS.—Eligible recipients of as-
sistance under this section shall include State and local 
governments, State and local government associations, 
public and private nonprofit organizations, and colleges 
and universities. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section $150,000,000 for each of the fiscal 
years 2008 through 2012. 
SEC. 198. AUTHORIZATION OF APPROPRIATIONS. 
(a) GRANTS.—There are authorized to be appro-
priated to the Secretary for grants under this subtitle, 
$2,000,000,000 for each of fiscal years 2008 through 
2012. 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00176
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
177 
(b) ADMINISTRATION.—There are authorized to be 
appropriated to the Secretary for administrative expenses 
of the program established under this subtitle— 
(1) $20,000,000 for fiscal year 2008; 
(2) $20,000,000 for fiscal year 2009; 
(3) $25,000,000 for fiscal year 2010; 
(4) $25,000,000 for fiscal year 2011; and 
(5) $30,000,000 for fiscal year 2012. 
Subtitle J—Green Buildings 
Retrofit Loan Guarantees 
SEC. 199. GREEN BUILDINGS RETROFIT LOAN GUARAN-
TEES. 
(a) DEFINITIONS.—In this section: 
(1) COST.—The term ‘‘cost’’ has the meaning 
given the term ‘‘cost of a loan guarantee’’ within the 
meaning of section 502(5)(C) of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a(5)(C)). 
(2) GUARANTEE.— 
(A) IN GENERAL.—The term ‘‘guarantee’’ 
has the meaning given the term ‘‘loan guar-
antee’’ in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a). 
(B) INCLUSION.—The term ‘‘guarantee’’ 
includes a loan guarantee commitment (as de-
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00177
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
178 
fined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)). 
(3) 
OBLIGATION.—The 
term 
‘‘obligation’’ 
means the loan or other debt obligation that is guar-
anteed under this section. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) ELIGIBLE PURPOSES.—Except for division C of 
Public Law 108–423, the Director shall make loan guar-
antees under this section for renovation projects that are 
eligible projects within the meaning of section 1703 of the 
Energy Policy Act of 2005 and that will result in a build-
ing achieving the United States Green Building Council 
Leadership in Energy and Environmental Design ‘‘cer-
tified’’ level, or meeting a comparable standard approved 
by the Director. 
(c) TERMS AND CONDITIONS.— 
(1) IN
GENERAL.—The Director shall make 
guarantees under this section for projects on such 
terms and conditions as the Director determines, 
after consultation with the Secretary of the Treas-
ury, in accordance with this section, including limi-
tations on the amount of any loan guarantee to en-
sure distribution to a variety of borrowers. 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00178
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
179 
(2) SPECIFIC
APPROPRIATION
OR
CONTRIBU-
TION.—No guarantee shall be made under this sec-
tion unless— 
(A) an appropriation for the cost has been 
made; or 
(B) the Director has received from the bor-
rower a payment in full for the cost of the obli-
gation and deposited the payment into the 
Treasury. 
(3) LIMITATION.—Not more than $100,000,000 
in loans may be guaranteed under this section at 
any one time. 
(4) AMOUNT.—Unless otherwise provided by 
law, a guarantee by the Director under this section 
shall not exceed an amount equal to 80 percent of 
the project cost that is the subject of the guarantee, 
as estimated at the time at which the guarantee is 
issued. 
(5) REPAYMENT.—No guarantee shall be made 
under this section unless the Director determines 
that there is reasonable prospect of repayment of the 
principal and interest on the obligation by the bor-
rower. 
(6) INTEREST RATE.—An obligation shall bear 
interest at a rate that does not exceed a level that 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00179
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
180 
the Director determines appropriate, taking into ac-
count the prevailing rate of interest in the private 
sector for similar loans and risks. 
(7) TERM.—The term of an obligation shall re-
quire full repayment over a period not to exceed the 
lesser of— 
(A) 30 years; or 
(B) 90 percent of the projected useful life 
of the building whose renovation is to be fi-
nanced by the obligation (as determined by the 
Director). 
(8) DEFAULTS.— 
(A) PAYMENT BY DIRECTOR.— 
(i) IN GENERAL.—If a borrower de-
faults on the obligation (as defined in reg-
ulations promulgated by the Director and 
specified in the guarantee contract), the 
holder of the guarantee shall have the 
right to demand payment of the unpaid 
amount from the Director. 
(ii) 
PAYMENT
REQUIRED.—Within 
such period as may be specified in the 
guarantee or related agreements, the Di-
rector shall pay to the holder of the guar-
antee the unpaid interest on, and unpaid 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00180
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
181 
principal of the obligation as to which the 
borrower has defaulted, unless the Director 
finds that there was no default by the bor-
rower in the payment of interest or prin-
cipal or that the default has been rem-
edied. 
(iii) FORBEARANCE.—Nothing in this 
paragraph precludes any forbearance by 
the holder of the obligation for the benefit 
of the borrower which may be agreed upon 
by the parties to the obligation and ap-
proved by the Director. 
(B) SUBROGATION.— 
(i) IN
GENERAL.—If the Director 
makes a payment under subparagraph (A), 
the Director shall be subrogated to the 
rights of the recipient of the payment as 
specified in the guarantee or related agree-
ments including, where appropriate, the 
authority (notwithstanding any other pro-
vision of law) to— 
(I) complete, maintain, operate, 
lease, or otherwise dispose of any 
property acquired pursuant to such 
guarantee or related agreements; or 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00181
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
182 
(II) permit the borrower, pursu-
ant to an agreement with the Direc-
tor, to continue to pursue the pur-
poses of the project if the Director de-
termines this to be in the public inter-
est. 
(ii) SUPERIORITY
OF
RIGHTS.—The 
rights of the Director, with respect to any 
property acquired pursuant to a guarantee 
or related agreements, shall be superior to 
the rights of any other person with respect 
to the property. 
(iii) TERMS
AND
CONDITIONS.—A 
guarantee agreement shall include such de-
tailed terms and conditions as the Director 
determines appropriate to— 
(I) protect the interests of the 
United States in the case of default; 
and 
(II) have available all the patents 
and technology necessary for any per-
son selected, including the Director, to 
complete and operate the project. 
(C) PAYMENT OF PRINCIPAL AND INTER-
EST BY DIRECTOR.—With respect to any obliga-
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00182
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
183 
tion guaranteed under this section, the Director 
may enter into a contract to pay, and pay, hold-
ers of the obligation, for and on behalf of the 
borrower, from funds appropriated for that pur-
pose, the principal and interest payments which 
become due and payable on the unpaid balance 
of the obligation if the Director finds that— 
(i)(I) the borrower is unable to meet 
the payments and is not in default; 
(II) it is in the public interest to 
permit the borrower to continue to 
pursue the purposes of the project; 
and 
(III) the probable net benefit to 
the Federal Government in paying the 
principal and interest will be greater 
than that which would result in the 
event of a default; 
(ii) the amount of the payment that 
the Director is authorized to pay shall be 
no greater than the amount of principal 
and interest that the borrower is obligated 
to pay under the agreement being guaran-
teed; and 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00183
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
184 
(iii) the borrower agrees to reimburse 
the Director for the payment (including in-
terest) on terms and conditions that are 
satisfactory to the Director. 
(D) ACTION BY ATTORNEY GENERAL.— 
(i) NOTIFICATION.—If the borrower 
defaults on an obligation, the Director 
shall notify the Attorney General of the de-
fault. 
(ii) RECOVERY.—On notification, the 
Attorney General shall take such action as 
is appropriate to recover the unpaid prin-
cipal and interest due from— 
(I) such assets of the defaulting 
borrower as are associated with the 
obligation; or 
(II) any other security pledged to 
secure the obligation. 
(9) FEES.— 
(A) IN
GENERAL.—The Director shall 
charge and collect fees for guarantees in 
amounts the Director determines are sufficient 
to cover applicable administrative expenses. 
(B) AVAILABILITY.—Fees collected under 
this paragraph shall— 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00184
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS
185 
(i) be deposited by the Director into 
the Treasury; and 
(ii) remain available until expended, 
subject to such other conditions as are con-
tained in annual appropriations Acts. 
(10) RECORDS; AUDITS.— 
(A) IN GENERAL.—A recipient of a guar-
antee shall keep such records and other perti-
nent documents as the Director shall prescribe 
by regulation, including such records as the Di-
rector may require to facilitate an effective 
audit. 
(B) ACCESS.—The Director and the Comp-
troller General of the United States, or their 
duly authorized representatives, shall have ac-
cess, for the purpose of audit, to the records 
and other pertinent documents. 
(11) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
payment of all guarantees issued under this section 
with respect to principal and interest. 
VerDate Aug 31 2005 
01:26 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00185
Fmt 6652
Sfmt 6201
E:\BILLS\H3236.RH
H3236
bajohnson on PROD1PC77 with BILLS