405 
HR 3221 PCS
areas identified in the set of inventoried roadless 
areas maps contained in the Forest Service Roadless 
Areas Conservation, Final Environmental Impact 
Statement, Volume 2, dated November 2000. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated such sums as may be nec-
essary to carry out the pilot program.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by striking the 
item relating to section 210 and inserting the following 
new item: 
‘‘Sec. 210. Biomass utilization pilot program.’’. 
SEC. 
7307. 
PROGRAMMATIC 
ENVIRONMENTAL 
IMPACT 
STATEMENT. 
The Secretary of Commerce and the Secretary of the 
Interior shall, in cooperation with the Federal Energy 
Regulatory Commission and the Secretary of Energy, and 
in consultation with appropriate State agencies, jointly 
prepare programmatic environmental impact statements 
which contain all the elements of an environmental impact 
statement under section 102 of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4332), regarding 
the impacts of the deployment of marine and hydrokinetic 
renewable energy technologies in the navigable waters of 
the United States. One programmatic environmental im-
pact statement shall be prepared under this section for 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00405
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
406 
HR 3221 PCS
each of the Environmental Protection Agency regions of 
the United States. The agencies shall issue the pro-
grammatic environmental impact statements under this 
section not later than 18 months after the date of enact-
ment of this Act. The programmatic environmental impact 
statements shall evaluate among other things the potential 
impacts of site selection on fish and wildlife and related 
habitat. Nothing in this section shall operate to delay con-
sideration of any application for a license or permit for 
a marine and hydrokinetic renewable energy technology 
project. 
Subtitle D—Carbon Capture and 
Climate Change Mitigation 
CHAPTER 1—GEOLOGICAL 
SEQUESTRATION ASSESSMENT 
SEC. 7401. SHORT TITLE. 
This chapter may be cited as the ‘‘National Carbon 
Dioxide Storage Capacity Assessment Act of 2007’’. 
SEC. 7402. NATIONAL ASSESSMENT. 
(a) DEFINITIONS.—In this section: 
(1) ASSESSMENT.—The term ‘‘assessment’’ 
means the national assessment of capacity for car-
bon dioxide completed under subsection (f). 
(2) CAPACITY.—The term ‘‘capacity’’ means the 
portion of a storage formation that can retain car-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00406
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
407 
HR 3221 PCS
bon dioxide in accordance with the requirements (in-
cluding physical, geological, and economic require-
ments) established under the methodology developed 
under subsection (b). 
(3) ENGINEERED
HAZARD.—The term ‘‘engi-
neered hazard’’ includes the location and completion 
history of any well that could affect potential stor-
age. 
(4) RISK.—The term ‘‘risk’’ includes any risk 
posed 
by 
geomechanical, 
geochemical, 
hydrogeological, structural, and engineered hazards. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the United States Geological Survey. 
(6) STORAGE FORMATION.—The term ‘‘storage 
formation’’ 
means 
a 
deep 
saline 
formation, 
unmineable coal seam, or oil or gas reservoir that is 
capable of accommodating a volume of industrial 
carbon dioxide. 
(b) METHODOLOGY.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall develop 
a methodology for conducting an assessment under sub-
section (f), taking into consideration— 
(1) the geographical extent of all potential stor-
age formations in all States; 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00407
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
408 
HR 3221 PCS
(2) the capacity of the potential storage forma-
tions; 
(3) the injectivity of the potential storage for-
mations; 
(4) an estimate of potential volumes of oil and 
gas recoverable by injection and storage of industrial 
carbon dioxide in potential storage formations; 
(5) the risk associated with the potential stor-
age formations; and 
(6) the Carbon Sequestration Atlas of the 
United States and Canada that was completed by 
the Department of Energy in April 2006. 
(c) COORDINATION.— 
(1) FEDERAL COORDINATION.— 
(A) CONSULTATION.—The Secretary shall 
consult with the Secretary of Energy and the 
Administrator of the Environmental Protection 
Agency on issues of data sharing, format, devel-
opment of the methodology, and content of the 
assessment required under this section to en-
sure the maximum usefulness and success of 
the assessment. 
(B) COOPERATION.—The Secretary of En-
ergy and the Administrator shall cooperate with 
the Secretary to ensure, to the maximum extent 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00408
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
409 
HR 3221 PCS
practicable, the usefulness and success of the 
assessment. 
(2) STATE
COORDINATION.—The Secretary 
shall consult with State geological surveys and other 
relevant entities to ensure, to the maximum extent 
practicable, the usefulness and success of the assess-
ment. 
(d) EXTERNAL REVIEW
AND PUBLICATION.—On 
completion of the methodology under subsection (b), the 
Secretary shall— 
(1) publish the methodology and solicit com-
ments from the public and the heads of affected 
Federal and State agencies; 
(2) establish a panel of individuals with exper-
tise in the matters described in paragraphs (1) 
through (5) of subsection (b) composed, as appro-
priate, of representatives of Federal agencies, insti-
tutions of higher education, nongovernmental organi-
zations, State organizations, industry, and inter-
national geoscience organizations to review the 
methodology and comments received under para-
graph (1); and 
(3) on completion of the review under para-
graph (2), publish in the Federal Register the re-
vised final methodology. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00409
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
463 
HR 3221 PCS
(E) Recommendations for operational im-
provements to enhance the efficiency, accuracy, 
and overall capability of the System. 
(3) BIENNIAL UPDATE.—Two years after the 
transmittal of the initial report prepared pursuant to 
this subsection and biennially thereafter, the Admin-
istrator, through the Council, shall submit to Con-
gress an update of the initial report. 
(i) PUBLIC-PRIVATE USE POLICY.—The Council 
shall develop a policy within 6 months after the date of 
the enactment of this section that defines processes for 
making decisions about the roles of the Federal Govern-
ment, the States, Regional Information Coordination En-
tities, the academic community, and the private sector in 
providing to end-user communities environmental informa-
tion, products, technologies, and services related to the 
System. The Council shall publish the policy in the Fed-
eral Register for public comment for a period not less than 
60 days. Nothing in this subsection shall be construed to 
require changes in policy in effect on the date of the enact-
ment of this Act. 
(j) INDEPENDENT COST ESTIMATE.—The Inter-
agency Working Group, through the Administrator and 
the Director of the National Science Foundation, shall ob-
tain within one year after the date of the enactment of 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00463
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
464 
HR 3221 PCS
this section an independent cost estimate for operations 
and maintenance of existing Federal assets of the System, 
and planned or anticipated acquisition, operation, and 
maintenance of new Federal assets for the System, includ-
ing operation facilities, observation equipment, modeling 
and software, data management and communication, and 
other essential components. The independent cost estimate 
shall be transmitted unabridged and without revision by 
the Administrator to Congress. 
(k) INTENT OF CONGRESS.—It is the intent of Con-
gress that funding provided to agencies of the Council to 
implement this section shall supplement, and not replace, 
existing sources of funding for other programs. It is the 
further intent of Congress that agencies of the Council 
shall not enter into contracts or agreements for the devel-
opment or procurement of new Federal assets for the Sys-
tem that are estimated to be in excess of $250,000,000 
in life-cycle costs without first providing adequate notice 
to Congress and opportunity for review and comment. 
Subtitle E—Royalties Under 
Offshore Oil and Gas Leases 
SEC. 7501. SHORT TITLE. 
This subtitle may be cited as the ‘‘Royalty Relief for 
American Consumers Act of 2007’’. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00464
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
465 
HR 3221 PCS
SEC. 7502. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
The Secretary of the Interior shall agree to a request 
by any lessee to amend any lease issued for any Central 
and Western Gulf of Mexico tract during the period of 
January 1, 1998, through December 31, 1999, to incor-
porate price thresholds applicable to royalty suspension 
provisions, that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(C)). Any amended lease shall impose 
the new or revised price thresholds effective October 1, 
2006. Existing lease provisions shall prevail through Sep-
tember 30, 2006. 
SEC. 7503. CLARIFICATION OF AUTHORITY TO IMPOSE 
PRICE THRESHOLDS FOR CERTAIN LEASE 
SALES. 
Congress reaffirms the authority of the Secretary of 
the Interior under section 8(a)(1)(H) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to 
vary, based on the price of production from a lease, the 
suspension of royalties under any lease subject to section 
304 of the Outer Continental Shelf Deep Water Royalty 
Relief Act (Public Law 104–58; 43 U.S.C. 1337 note). 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00465
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
466 
HR 3221 PCS
SEC. 7504. ELIGIBILITY FOR NEW LEASES AND THE TRANS-
FER OF LEASES; CONSERVATION OF RE-
SOURCES FEES. 
(a) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas in the Gulf of Mexico under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) to a person described in paragraph (2) un-
less— 
(A) the person has renegotiated each cov-
ered lease with respect to which the person is 
a lessee, to modify the payment responsibilities 
of the person to include price thresholds that 
are equal to or less than the price thresholds 
described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)(C)); or 
(B) the person has— 
(i) paid all fees established by the 
Secretary under subsection (b) that are 
due with respect to each covered lease for 
which the person is a lessee; or 
(ii) entered into an agreement with 
the Secretary under which the person is 
obligated to pay such fees. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00466
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
467 
HR 3221 PCS
(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is a person that— 
(A) is a lessee that— 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person or entity who has 
any direct or indirect interest in, or who derives 
any benefit from, a covered lease; 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00467
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
499 
HR 3221 PCS
‘‘(g) STUDY.—The Secretary shall conduct a study 
of the projects carried out with grant assistance under this 
section to determine the public interest benefits associated 
with the light density railroad networks in the States and 
their contribution to a multimodal transportation system. 
Not later than March 31, 2009, the Secretary shall report 
to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail 
networks for Federal infrastructure financing. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary of Trans-
portation $250,000,000 for each of fiscal years 2008 
through 2011 for carrying out this section.’’. 
(b) CLERICAL AMENDMENT.—The item relating to 
chapter 223 in the table of chapters of subtitle V of title 
49, United States Code, is amended to read as follows: 
‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK .......................... 22301’’. 
PART 2—PIPELINES 
SEC. 8311. FEASIBILITY STUDIES. 
(a) IN GENERAL.—The Secretary of Energy, in co-
ordination with the Secretary of Transportation, shall con-
duct feasibility studies for the construction of pipeline 
dedicated to the transportation of ethanol. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy shall 
submit to the Committee on Transportation and Infra-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00499
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
500 
HR 3221 PCS
structure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a report on such feasibility studies. 
(c) STUDY FACTORS.—Feasibility studies funded 
under this part shall include consideration of— 
(1) existing or potential barriers to the con-
struction of pipelines dedicated to the transportation 
of ethanol, including technical, siting, financing, and 
regulatory barriers; 
(2) market risk, including throughput risk; 
(3) regulatory, financing, and siting options 
that would mitigate such risk and help ensure the 
construction of pipelines dedicated to the transpor-
tation of ethanol; 
(4) ensuring the safe transportation of ethanol 
and preventive measures to ensure pipeline integrity; 
and 
(5) such other factors as the Secretary of En-
ergy considers appropriate. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $1,000,000 for each of the 
fiscal years 2008 and 2009, to remain available until ex-
pended. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00500
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
501 
HR 3221 PCS
Subtitle D—Maritime 
Transportation 
PART 1—GENERAL PROVISIONS 
SEC. 8401. SHORT SEA TRANSPORTATION INITIATIVE. 
(a) IN GENERAL.—Title 46, United States Code, is 
amended by adding after chapter 555 the following: 
‘‘CHAPTER 556—SHORT SEA 
TRANSPORTATION 
‘‘Sec. 55601. Short sea transportation program. 
‘‘Sec. 55602. Cargo and shippers. 
‘‘Sec. 55603. Financing of short sea transportation projects. 
‘‘Sec. 55604. Interagency coordination. 
‘‘Sec. 55605. Research on short sea transportation. 
‘‘Sec. 55606. Short sea transportation defined. 
‘‘§ 55601. Short sea transportation program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a short sea transportation program 
and designate short sea transportation projects to be con-
ducted under the program to mitigate landside congestion. 
‘‘(b) PROGRAM ELEMENTS.—The program shall en-
courage the use of short sea transportation through the 
development and expansion of— 
‘‘(1) documented vessels; 
‘‘(2) shipper utilization; 
‘‘(3) port and landside infrastructure; and 
‘‘(4) marine transportation strategies by State 
and local governments. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00501
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
502 
HR 3221 PCS
‘‘(c) SHORT SEA TRANSPORTATION ROUTES.—The 
Secretary shall designate short sea transportation routes 
as extensions of the surface transportation system to focus 
public and private efforts to use the waterways to relieve 
landside congestion along coastal corridors. The Secretary 
may collect and disseminate data for the designation and 
delineation of short sea transportation routes. 
‘‘(d) PROJECT DESIGNATION.—The Secretary may 
designate a project to be a short sea transportation project 
if the Secretary determines that the project may— 
‘‘(1) offer a waterborne alternative to available 
landside transportation services using documented 
vessels; and 
‘‘(2) provide transportation services for pas-
sengers or freight (or both) that may reduce conges-
tion on landside infrastructure using documented 
vessels. 
‘‘(e) ELEMENTS
OF PROGRAM.—For a short sea 
transportation project designated under this section, the 
Secretary of Transportation may— 
‘‘(1) promote the development of short sea 
transportation services; 
‘‘(2) coordinate, with ports, State departments 
of transportation, localities, other public agencies, 
and the private sector and on the development of 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00502
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
503 
HR 3221 PCS
landside facilities and infrastructure to support 
short sea transportation services; and 
‘‘(3) develop performance measures for the 
short sea transportation program. 
‘‘(f) MULTISTATE, STATE AND REGIONAL TRANS-
PORTATION PLANNING.—The Secretary, in consultation 
with Federal entities and State and local governments, 
shall develop strategies to encourage the use of short sea 
transportation for transportation of passengers and cargo. 
The Secretary shall— 
‘‘(1) assess the extent to which States and local 
governments include short sea transportation and 
other marine transportation solutions in their trans-
portation planning; 
‘‘(2) encourage State departments of transpor-
tation to develop strategies, where appropriate, to 
incorporate short sea transportation, ferries, and 
other marine transportation solutions for regional 
and interstate transport of freight and passengers in 
their transportation planning; and 
‘‘(3) encourage groups of States and multi- 
State transportation entities to determine how short 
sea transportation can address congestion, bottle-
necks, and other interstate transportation chal-
lenges. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00503
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
504 
HR 3221 PCS
‘‘§ 55602. Cargo and shippers 
‘‘(a) MEMORANDUMS
OF AGREEMENT.—The Sec-
retary of Transportation shall enter into memorandums 
of understanding with the heads of other Federal entities 
to transport federally owned or generated cargo using a 
short sea transportation project designated under section 
55601 when practical or available. 
‘‘(b) SHORT-TERM
INCENTIVES.—The Secretary 
shall consult shippers and other participants in transpor-
tation logistics and develop proposals for short-term incen-
tives to encourage the use of short sea transportation. 
‘‘§ 55603. Financing of short sea transportation 
projects 
‘‘(a) AUTHORITY TO MAKE LOAN GUARANTEE.—The 
Secretary of Transportation, subject to the availability of 
appropriations, may make a loan guarantee for the financ-
ing of the construction, reconstruction, or reconditioning 
of a vessel that will be used for a short sea transportation 
project designated under section 55601. 
‘‘(b) TERMS AND CONDITIONS.—In making a loan 
guarantee under this section, the Secretary shall use the 
authority, terms, and conditions that apply to a loan guar-
antee made under chapter 537. 
‘‘(c) GENERAL
LIMITATIONS.—The total unpaid 
principal amount of obligations guaranteed under this 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00504
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
542 
HR 3221 PCS
(A) Two members appointed by the Presi-
dent. 
(B) Two members appointed by the Speak-
er of the House of Representatives from a list 
of four individuals— 
(i) two nominated for that appoint-
ment by the chairman of the Committee on 
Transportation and Infrastructure of the 
House of Representatives; and 
(ii) two nominated for that appoint-
ment by the chairman of the Committee 
Natural Resources of the House of Rep-
resentatives. 
(C) Two members appointed by the major-
ity leader of the Senate from a list of four indi-
viduals— 
(i) two nominated for that appoint-
ment by the chairman of the Committee on 
Environment and Public Works of the Sen-
ate; and 
(ii) two nominated for that appoint-
ment by the chairman of the Committee on 
Energy and Natural Resources of the Sen-
ate. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00542
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
543 
HR 3221 PCS
(D) One member appointed by the minor-
ity leader of the House of Representatives from 
a list of two individuals— 
(i) one nominated for that appoint-
ment by the ranking member of the Com-
mittee on Transportation and Infrastruc-
ture of the House of Representatives; and 
(ii) one nominated for that appoint-
ment by the ranking member of the Com-
mittee on Natural Resources of the Senate. 
(E) One member appointed by the minor-
ity leader of the Senate from a list of two indi-
viduals— 
(i) one nominated for that appoint-
ment by the ranking member of the Com-
mittee on Environment and Public Works 
of the Senate; and 
(ii) one nominated for that appoint-
ment by the ranking member of the Com-
mittee on Energy and Natural Resources 
of the Senate. 
(2) QUALIFICATIONS.— 
(A) RECOGNIZED STANDING AND DISTINC-
TION.—Members shall be appointed to the 
Commission from among individuals who are of 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00543
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
544 
HR 3221 PCS
recognized standing and distinction in water 
policy issues. 
(B) LIMITATION.—A person while serving 
as a member of the Commission may not hold 
any other position as an officer or employee of 
the United States, except as a retired officer or 
retired civilian employee of the United States. 
(C) OTHER CONSIDERATIONS.—In appoint-
ing members of the Commission, every effort 
shall be made to ensure that the members rep-
resent a broad cross section of regional and 
geographical perspectives in the United States. 
(3) CHAIRPERSON.—The Chairperson of the 
Commission shall be elected by a majority vote of 
the members of the Commission. 
(4) TERMS.—Members of the Commission shall 
serve for the life of the Commission. 
(5) VACANCIES.—A vacancy on the Commission 
shall not affect its operation and shall be filled in 
the manner in which the original appointment was 
made. 
(6) COMPENSATION AND TRAVEL EXPENSES.— 
Members of the Commission shall serve without 
compensation; except that members shall receive 
travel expenses, including per diem in lieu of subsist-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00544
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
545 
HR 3221 PCS
ence, in accordance with applicable provisions under 
subchapter I of chapter 57, United States Code. 
(d) MEETINGS AND QUORUM.— 
(1) MEETINGS.—The Commission shall hold its 
first meeting not later than 60 days after the date 
on which all original members are appointed under 
subsection (c) and shall hold additional meetings at 
the call of the Chairperson or a majority of its mem-
bers. 
(2) QUORUM.—A majority of the members of 
the Commission shall constitute a quorum for the 
transaction of business. 
(e) DIRECTOR AND STAFF.— 
(1) DIRECTOR.—The Commission shall have a 
Director who shall be appointed by the Speaker of 
the House of Representatives and the majority lead-
er of the Senate, in consultation with the minority 
leader of the House of Representatives, the chairmen 
of the Committees on Resources and Transportation 
and Infrastructure of the House of Representatives, 
the minority leader of the Senate, and the chairmen 
of the Committee on Energy and Natural Resources 
and Environment and Public Works of the Senate. 
(2) APPLICABILITY OF CERTAIN CIVIL SERVICE 
LAWS.—The Director and staff of the Commission 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00545
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
546 
HR 3221 PCS
may be appointed without regard to the provisions 
of title 5, United States Code, governing appoint-
ments in the competitive service, and may be paid 
without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates; except 
that an individual so appointed may not receive pay 
in excess of the annual rate of basic pay for GS–15 
of the General Schedule. 
(f) HEARINGS.— 
(1) MINIMUM NUMBER.—The Commission shall 
hold no fewer than 10 hearings during the life of the 
Commission. 
(2) IN CONJUNCTION WITH MEETINGS.—Hear-
ings may be held in conjunction with meetings of the 
Commission. 
(3) TESTIMONY AND EVIDENCE.—The Commis-
sion may take such testimony and receive such evi-
dence as the Commission considers appropriate to 
carry out this section. 
(4) SPECIFIED.—At least one hearing shall be 
held in Washington, District of Columbia, for the 
purpose of taking testimony of representatives of 
Federal agencies, national organizations, and Mem-
bers of Congress. At least one hearing shall focus on 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00546
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
561 
HR 3221 PCS
SEC. 9004. REGIONAL VARIATIONS IN HEATING OR COOL-
ING STANDARDS. 
(a) CONSUMER APPLIANCES.—Section 325(o) of the 
Energy Policy and Conservation Act (42 U.S.C. 6925(o)) 
is amended by adding at the end the following new para-
graph: 
‘‘(6)(A) The Secretary may establish regional stand-
ards for space heating and air conditioning products, other 
than window-unit air-conditioners and portable space 
heaters. For each space heating and air conditioning prod-
uct, the Secretary may establish a national minimum 
standard and two more stringent regional standards for 
regions determined to have significantly differing climatic 
conditions. Any standards set for any such region shall 
achieve the maximum level of energy savings that are tech-
nically feasible and economically justified within that re-
gion. As a preliminary step to determining the economic 
justifiability of establishing any such regional standard, 
the Secretary shall conduct a study involving stakeholders, 
including but not limited to a representative from the Na-
tional Institute of Standards and Technology; representa-
tives of nongovernmental advocacy organizations; rep-
resentatives of product manufacturers, distributors, and 
installers; representatives of the gas and electric utility in-
dustries; and such other individuals as the Secretary may 
designate. Such study shall determine the potential bene-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00561
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
562 
HR 3221 PCS
fits and consequences of prescribing regional standards for 
heating and cooling products, and may, if favorable to 
such standards, constitute the evidence of economic justifi-
ability required under this Act. Regional boundaries shall 
follow State borders and only include contiguous States 
(except Alaska and Hawaii), except that on the request 
of a State, the Secretary may divide that State to include 
a part of that State in each of two regions. 
‘‘(B) If the Secretary establishes regional standards, 
it shall be unlawful under section 332 to offer for sale 
at retail, sell at retail, or install noncomplying products 
except within the specified regions. 
‘‘(C)(i) Except as provided in clause (ii), no product 
manufactured to a regional standard established pursuant 
to subparagraph (A) shall be distributed in commerce 
without a prominent label affixed to the product which in-
cludes at the top of the label, in print of not less than 
14-point type, the following: ‘It is a violation of Federal 
law for this product to be installed in any State outside 
the region shaded on the map printed on this label.’. 
Below this notice shall appear a map of the United States 
with clearly defined State boundaries and names, and with 
all States in which the product meets or exceeds the stand-
ard established pursuant to subparagraph (A) shaded in 
a color or a manner as to be easily visible without obscur-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00562
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
563 
HR 3221 PCS
ing the State boundaries and names. Below the map shall 
be printed on each label the following: ‘It is a violation 
of Federal law for this label to be removed, except by the 
owner and legal resident of any single-family home in 
which this product is installed.’. 
‘‘(ii) A product manufactured that meets or exceeds 
all regional standards established under this paragraph 
shall bear a prominent label affixed to the product which 
includes at the top of the label, in print of not less than 
14-point type the following: ‘This product has achieved an 
energy efficiency rating under Federal law allowing its in-
stallation in any State.’. 
‘‘(D) Manufacturers of space heating and air condi-
tioning equipment subject to regional standards estab-
lished under this paragraph shall obtain and retain 
records on the intended installation locations of the equip-
ment sold, and shall make such records available to the 
Secretary on request.’’. 
(b) INDUSTRIAL EQUIPMENT.—Section 342(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6313(a)) 
is amended by adding at the end the following new para-
graph: 
‘‘(10)(A) The Secretary may establish regional stand-
ards for space heating and air conditioning products sub-
ject to this subsection. For each space heating and air con-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00563
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
564 
HR 3221 PCS
ditioning product, the Secretary may establish a national 
minimum standard and two more stringent regional stand-
ards for regions determined to have significantly differing 
climatic conditions. Any standards set for any such region 
shall achieve the maximum level of energy savings that 
are technically feasible and economically justified within 
that region. Regional boundaries shall follow State borders 
and only include contiguous States (except Alaska and 
Hawaii), except that on the request of a State, the Sec-
retary may divide that State to include a part of that State 
in each of two regions. 
‘‘(B) If the Secretary establishes regional standards, 
it shall be unlawful under section 345 to offer for sale 
at retail, sell at retail, or install noncomplying products 
except within the specified regions. 
‘‘(C) Manufacturers of space heating and air condi-
tioning equipment subject to regional standards estab-
lished under this paragraph shall obtain and retain 
records on the intended installation locations of the equip-
ment sold, and shall make such records available to the 
Secretary on request.’’. 
SEC. 9005. PROCEDURE FOR PRESCRIBING NEW OR AMEND-
ED STANDARDS. 
Section 325(p) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6925(p)) is amended— 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00564
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
565 
HR 3221 PCS
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) through 
(4) as paragraphs (1) through (3), respectively. 
SEC. 
9006. 
EXPEDITING 
APPLIANCE 
STANDARDS 
RULEMAKINGS. 
(a) DIRECT FINAL RULE.—Section 325(p) of the En-
ergy Policy and Conservation Act (42 U.S.C. 6295(p)) is 
amended by adding a new paragraph (4) as follows: 
‘‘(4) If manufacturers of any type (or class) of 
covered products or covered equipment, States, and 
efficiency advocates, or persons determined by the 
Secretary to fully represent such parties, submit to 
the Secretary a joint recommendation of an energy 
or water conservation standard and the Secretary 
determines that the recommended standard complies 
with subsection (o) or section 342(a)(6)(B), as appli-
cable, to that type (or class) of covered products or 
covered equipment to which the standard would 
apply, the Secretary may then issue a direct final 
rule including the standard recommended. If the 
Secretary determines that a direct final rule cannot 
be issued based on such a submitted joint rec-
ommendation, the Secretary shall publish a deter-
mination with an explanation as to why the joint 
recommendation does not comply with this para-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00565
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
567 
HR 3221 PCS
withdrawal of the direct final rule. A direct final rule 
that is withdrawn in accordance with this paragraph 
shall not be considered final for purposes of sub-
section (o)(1) of this section. No person shall be 
found in violation of this part for noncompliance 
with a direct final rule that is withdrawn under this 
paragraph, if that person has complied with the ap-
plicable standard in effect under this part imme-
diately prior to issuance of that direct final rule.’’. 
(b) CONFORMING AMENDMENT.—Section 345(b)(1) 
of the Energy Policy and Conservation Act (42 U.S.C. 
6316(b)(1)) is amended by inserting after ‘‘section’’ the 
first time it appears ‘‘325(p)(5), section’’. 
SEC. 9007. CORRECTION OF LARGE AIR CONDITIONER 
RULE ISSUANCE CONSTRAINT. 
(a) DEFINITIONS.—Section 340 of the Energy Policy 
and Conservation Act (42 U.S.C. 6311) is amended by 
adding the following new paragraphs at the end: 
‘‘(22) The term ‘single package vertical air con-
ditioner’ means air-cooled commercial package air 
conditioning and heating equipment; factory assem-
bled as a single package having its major compo-
nents arranged vertically, which is an encased com-
bination of cooling and optional heating components, 
is intended for exterior mounting on, adjacent inte-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00567
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
568 
HR 3221 PCS
rior to, or through an outside wall; and is powered 
by a single- or three-phase current. It may contain 
separate indoor grille(s), outdoor louvers, various 
ventilation options, indoor free air discharge, duct-
work, well plenum, or sleeve. Heating components 
may include electrical resistance, steam, hot water, 
or gas, but may not include reverse cycle refrigera-
tion as a heating means. 
‘‘(23) The term ‘single package vertical heat 
pump’ means a single package vertical air condi-
tioner that utilizes reverse cycle refrigeration as its 
primary heat source, that may include secondary 
supplemental heating by means of electrical resist-
ance, steam, hot water, or gas.’’. 
(b) STANDARDS.—Section 342(a) of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6313(a)) is amend-
ed— 
(1) in each of paragraphs (1) and (2), by in-
serting after ‘‘heating equipment’’ in the first sen-
tence ‘‘, including single package vertical air condi-
tioners and single package vertical heat pumps,’’; 
(2) in paragraph (1), by striking ‘‘but before 
January 1, 2010,’’; 
(3) in each of paragraphs (7), (8), and (9), by 
inserting after ‘‘heating equipment’’ in the first sen-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00568
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
569 
HR 3221 PCS
tence ‘‘, excluding single package vertical air condi-
tioners and single package vertical heat pumps,’’; 
(4) in paragraph (7)— 
(A) by striking ‘‘manufactured on or after 
January 1, 2010,’’; 
(B) in each of subparagraphs (A), (B), and 
(C), by striking ‘‘The’’ and inserting ‘‘For 
equipment manufactured on or after January 1, 
2010, the’’; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(D) For equipment manufactured on or after 
the later of January 1, 2008, or the date six months 
after enactment of this section, the minimum sea-
sonal energy efficiency ratio of air-cooled three-phase 
electric central air conditioners and central air con-
ditioning heat pumps less than 65,000 Btu per hour 
(cooling capacity), split systems, shall be 13.0. 
‘‘(E) For equipment manufactured on or after 
the later of January 1, 2008, or the date six months 
after enactment of this section, minimum seasonal 
energy efficiency ratio of air-cooled three-phase elec-
tric central air conditioners and central air condi-
tioning heat pumps less than 65,000 Btu per hour 
(cooling capacity), single package, shall be 13.0. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00569
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
570 
HR 3221 PCS
‘‘(F) For equipment manufactured on or after 
the later of January 1, 2008, or the date six months 
after enactment of this section, minimum heating 
seasonal performance factor of air-cooled three- 
phase electric central air conditioning heat pumps 
less than 65,000 Btu per hour (cooling capacity), 
split systems, shall be 7.7. 
‘‘(G) For equipment manufactured on or after 
the later of January 1, 2008, or the date six months 
after enactment of this section, the minimum heat-
ing seasonal performance factor of air-cooled three- 
phase electric central air conditioning heat pumps 
less than 65,000 Btu per hour (cooling capacity), 
single package, shall be 7.7.’’; and 
(5) by adding the following new paragraphs at 
the end: 
‘‘(11) Single package vertical air conditioners and 
single package vertical heat pumps manufactured on or 
after January 1, 2010, shall meet the following standards: 
‘‘(A) The minimum energy efficiency ratio of 
single package vertical air conditioners less than 
65,000 Btu per hour (cooling capacity), single- 
phase, shall be 9.0. 
‘‘(B) The minimum energy efficiency ratio of 
single package vertical air conditioners less than 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00570
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
571 
HR 3221 PCS
65,000 Btu per hour (cooling capacity), three-phase, 
shall be 9.0. 
‘‘(C) The minimum energy efficiency ratio of 
single package vertical air conditioners at or above 
65,000 Btu per hour (cooling capacity) but less than 
135,000 Btu per hour (cooling capacity), shall be 
8.9. 
‘‘(D) The minimum energy efficiency ratio of 
single package vertical air conditioners at or above 
135,000 Btu per hour (cooling capacity) but less 
than 240,000 Btu per hour (cooling capacity), shall 
be 8.6. 
‘‘(E) The minimum energy efficiency ratio of 
single package vertical heat pumps less than 65,000 
Btu per hour (cooling capacity), single-phase, shall 
be 9.0; and the minimum coefficient of performance 
in the heating mode shall be 3.0. 
‘‘(F) The minimum energy efficiency ratio of 
single package vertical heat pumps less than 65,000 
Btu per hour (cooling capacity), three-phase, shall 
be 9.0; and the minimum coefficient of performance 
in the heating mode shall be 3.0. 
‘‘(G) The minimum energy efficiency ratio of 
single package vertical heat pumps at or above 
65,000 Btu per hour (cooling capacity) but less than 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00571
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
573 
HR 3221 PCS
‘‘(i) for covered products (excluding 
clothes washers, dishwashers, showerheads, 
faucets, water closets, and urinals), pre-
scribe a minimum level of energy efficiency 
or a maximum quantity of energy use, de-
termined in accordance with test proce-
dures prescribed under section 323; 
‘‘(ii) for showerheads, faucets, water 
closets, and urinals, prescribe a minimum 
level of water efficiency or a maximum 
quantity of water use, determined in ac-
cordance with test procedures prescribed 
under section 323; and 
‘‘(iii) for clothes washers and dish-
washers— 
‘‘(I) prescribe a minimum level of 
energy efficiency or a maximum quan-
tity of energy use, determined in ac-
cordance with test procedures pre-
scribed under section 323; and 
‘‘(II) may include a minimum 
level of water efficiency or a maximum 
quantity of water use, determined in 
accordance with those test procedures. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00573
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
574 
HR 3221 PCS
‘‘(B) INCLUSIONS.—The term ‘energy con-
servation standard’ includes— 
‘‘(i) 1 or more design requirements, if 
the requirements were established— 
‘‘(I) on or before the date of en-
actment of this subclause; or 
‘‘(II) as part of a consensus 
agreement under section 325(p)(5); 
and 
‘‘(ii) any other requirements that the 
Secretary may prescribe under section 
325(r). 
‘‘(C) EXCLUSION.—The term ‘energy con-
servation standard’ does not include a perform-
ance standard for a component of a finished 
covered product, unless regulation of the com-
ponent is authorized or established pursuant to 
this title.’’. 
SEC. 9009. IMPROVING SCHEDULE FOR STANDARDS UPDAT-
ING AND CLARIFYING STATE AUTHORITY. 
(a) CONSUMER APPLIANCES.—Section 325(m) of the 
Energy Policy and Conservation Act (42 U.S.C. 6295(m)) 
is amended to read as follows: 
‘‘(m) FURTHER RULEMAKING.—(1) Not later than 6 
years after issuance of any final rule establishing or 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00574
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
575 
HR 3221 PCS
amending a standard, as required for a product under this 
part, the Secretary shall publish either— 
‘‘(A) a notice of the Secretary’s determination 
that standards for that product do not need to be 
amended, based on the criteria in subsection (n)(2); 
or 
‘‘(B) a notice of proposed rulemaking including 
new proposed standards based on the criteria in sub-
section (o) and the procedures in subsection (p). 
In either case, the Secretary shall also publish a notice 
stating that the Department’s analysis is publicly avail-
able, and provide opportunity for written comment. 
‘‘(2) Not later than 2 years after a notice is issued 
under paragraph (1)(B), the Secretary shall publish a 
final rule amending the standard for the product. Not 
later than 3 years after a determination under paragraph 
(1)(A), the Secretary shall make a new determination and 
publication under paragraph (1)(A) or (B). 
‘‘(3) An amendment prescribed under this subsection 
shall apply to products manufactured after a date which 
is 3 years after publication of the final rule establishing 
a standard, except that a manufacturer shall not be re-
quired to apply new standards to a product with respect 
to which other new standards have been required within 
the prior 6 years. 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00575
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
576 
HR 3221 PCS
‘‘(4) The Secretary shall promptly submit to the 
Committee on Energy and Commerce of the House of 
Representatives and the Committee on Energy and Nat-
ural Resources of the Senate— 
‘‘(A) a progress report every 180 days on com-
pliance with this section, including a specific plan to 
remedy any failures to comply with deadlines for ac-
tion set forth in this section; and 
‘‘(B) all required reports to the Court or to any 
party to the Consent Decree in State of New York 
v Bodman, Consolidated Civil Actions No.05 Civ. 
7807 and No.05 Civ. 7808.’’. 
(b) INDUSTRIAL EQUIPMENT.—Section 342(a)(6) of 
the Energy Policy and Conservation Act (42 U.S.C. 
6313(a)(6)) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by amending the remainder of the para-
graph to read as follows: 
‘‘(6)(A) If ASHRAE/IES Standard 90.1 is 
amended with respect to any small, large, or very 
large commercial package air conditioning and heat-
ing equipment, packaged terminal air conditioners, 
packaged terminal heat pumps, warm-air furnaces, 
packaged boilers, storage water heaters, instanta-
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00576
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
577 
HR 3221 PCS
neous water heaters, or unfired hot water storage 
tanks, the Secretary shall within 6 months publish 
in the Federal Register for public comment an anal-
ysis of the energy savings potential of the amended 
energy efficiency standards. The Secretary shall es-
tablish an amended uniform national standard for 
that product at the minimum level for each effective 
date specified in the amended ASHRAE/IES Stand-
ard 90.1 within 18 months of the ASHRAE amend-
ment’s publication, unless the Secretary determines, 
by rule published in the Federal Register, and sup-
ported by clear and convincing evidence, that adop-
tion of a uniform national standard more stringent 
than such amended ASHRAE/IES Standard 90.1 
for such product would result in significant addi-
tional conservation of energy and is technologically 
feasible and economically justified. 
‘‘(B) If the Secretary issues a rule containing 
such a determination, the rule shall establish such 
amended standard, and shall be issued within 30 
months of the ASHRAE amendment’s publication. 
‘‘(C)(i) Not later than 6 years after issuance of 
any final rule establishing or amending a standard, 
as required for a product under this part, the Sec-
retary shall publish either— 
VerDate Aug 31 2005 
03:07 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00577
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
578 
HR 3221 PCS
‘‘(I) a notice of the Secretary’s determina-
tion that standards for that product do not 
need to be amended, based on the criteria in 
subparagraph (A); or 
‘‘(II) a notice of proposed rulemaking in-
cluding new proposed standards based on the 
criteria and procedures in subparagraph (B). 
In either case, the Secretary shall also publish a no-
tice stating that the Department’s analysis is pub-
licly available, and provide opportunity for written 
comment. 
‘‘(ii) Not later than 2 years after a notice is 
issued under clause (i)(II), the Secretary shall pub-
lish a final rule amending the standard for the prod-
uct. Not later than 3 years after a determination 
under clause (i)(I), the Secretary shall make a new 
determination and publication under clause (i)(I) or 
(II). 
‘‘(iii) An amendment prescribed under this sub-
paragraph shall apply to products manufactured 
after a date which is 3 years after publication of the 
final rule establishing a standard, except that a 
manufacturer shall not be required to apply new 
standards to a product with respect to which other 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00578
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
619 
HR 3221 PCS
the Energy Policy and Conservation Act (42 U.S.C. 
6294a); 
‘‘(2) in the case of all LED luminaires, lamps, 
and systems whose efficacy (lumens per watt) and 
Color Rendering Index (CRI) meet the requirements 
for minimum luminaire efficacy and CRI for the En-
ergy Star certification, as verified by an independent 
third-party testing laboratory that conducts its tests 
according to the procedures and recommendations of 
the Illuminating Engineering Society of North 
America, even if these luminaires, lamps, and sys-
tems have not received such certification; or 
‘‘(3) the Administrator has otherwise deter-
mined that the fixture or bulb is energy efficient. 
‘‘(e) SIGNIFICANT ALTERATIONS.—A public building 
shall be treated as being significantly altered for purposes 
of subsection (a) if the alteration is subject to congres-
sional approval under section 3307. 
‘‘(f) EFFECTIVE DATE.—The requirements of sub-
sections (a) and (b) shall take effect one year after the 
date of enactment of this subsection.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 33 of title 40, United States Code, is amended 
by striking the items relating to sections 3313, 3314, and 
3315 and inserting the following: 
‘‘3313. Use of energy efficient lighting fixtures and bulbs. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00619
Fmt 6652
Sfmt 6211
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
620 
HR 3221 PCS
‘‘3314. Delegation. 
‘‘3315. Report to Congress. 
‘‘3316. Certain authority not affected.’’. 
SEC. 9024. METAL HALIDE LAMP FIXTURES. 
(a) DEFINITIONS.—Section 321 of the Energy Policy 
and Conservation Act (42 U.S.C. 6291) is amended by 
adding at the end the following: 
‘‘(57) The term ‘ballast’ means a device used 
with an electric discharge lamp to obtain necessary 
circuit conditions (voltage, current, and waveform) 
for starting and operating. 
‘‘(58) The term ‘metal halide lamp’ means a 
high intensity discharge lamp in which the major 
portion of the light is produced by radiation of metal 
halides and their products of dissociation, possibly in 
combination with metallic vapors. 
‘‘(59) The term ‘metal halide lamp fixture’ 
means a light fixture for general lighting application 
designed to be operated with a metal halide lamp 
and a ballast for a metal halide lamp. 
‘‘(60) The term ‘metal halide ballast’ means a 
ballast used to start and operate metal halide lamps. 
‘‘(61) The term ‘pulse-start metal halide bal-
last’ means an electronic or electromagnetic ballast 
that starts a pulse start metal halide lamp with high 
voltage pulses. Lamps are started by first providing 
a high voltage pulse for ionization of the gas to 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00620
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
621 
HR 3221 PCS
produce a glow discharge. To complete the starting 
process, power is provided by the ballast to sustain 
the discharge through the glow-to-arc transition. 
‘‘(62) The term ‘probe-start metal halide bal-
last’ means a ballast that starts a probe start metal 
halide lamp which contains a third starting electrode 
(probe) in the arc tube. This ballast does not gen-
erally contain an igniter and instead starts lamps 
with high ballast open circuit voltage. 
‘‘(63) The term ‘electronic ballast’ means a de-
vice that uses semiconductors as the primary means 
to control lamp starting and operation. 
‘‘(64) The term ‘general lighting application’ 
means lighting that provides an interior or exterior 
area with overall illumination. 
‘‘(65) The term ‘ballast efficiency’ for a high in-
tensity discharge fixture means the efficiency of a 
lamp and ballast combination, expressed as a per-
centage, and calculated by Efficiency = Pout/Pin, as 
measured. Pout is the measured operating lamp 
wattage, and Pin is the measured operating input 
wattage. The lamp, and the capacitor when it is pro-
vided, is to constitute a nominal system in accord-
ance with the ANSI Standard C78.43-2004. Pin and 
Pout are to be measured after lamps have been sta-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00621
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
622 
HR 3221 PCS
bilized according to Section 4.4 of ANSI Standard 
C82.6-2005 using a wattmeter with accuracy speci-
fied in Section 4.5 of ANSI Standard C82.6-2005 
for ballasts with a frequency of 60 Hz, and shall 
have a basic accuracy of ± 0.5 percent at the higher 
of— 
‘‘(A) three times the output operating fre-
quency of the ballast; or 
‘‘(B) 2 kHz for ballast with a frequency 
greater than 60 Hz. 
The Secretary may, by rule, modify this definition if 
he determines that such modification is necessary or 
appropriate to carry out the purposes of this Act.’’. 
(b) COVERAGE.—Section 322(a) of the Energy Policy 
and Conservation Act (42 U.S.C. 6292(a)) is amended— 
(1) by redesignating paragraph (19) as para-
graph (20); and 
(2) by inserting after paragraph (18) the fol-
lowing: 
‘‘(19) Metal halide lamp fixtures.’’. 
(c) TEST PROCEDURES.—Section 323(c) of the En-
ergy Policy and Conservation Act (42 U.S.C. 6293(c)) is 
amended by adding at the end the following: 
‘‘(17) Test procedures for metal halide lamp ballasts 
shall be based on American National Standards Institute 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00622
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
623 
HR 3221 PCS
Standard C82.6-2005, entitled ‘Ballasts for High Inten-
sity Discharge Lamps—Method of Measurement’.’’. 
(d) LABELING.—Section 324(a)(2) of the Energy 
Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is 
amended— 
(1) by redesignating subparagraphs (C) through 
(G) as subparagraphs (D) through (H), respectively; 
and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) The Commission shall prescribe labeling rules 
under this section applicable to the covered product speci-
fied in paragraph (19) of section 322(a) and to which 
standards are applicable under section 325. Such rules 
shall provide that the labeling of any metal halide lamp 
fixture manufactured on or after the later of January 1, 
2009, or nine months after enactment of this subpara-
graph, will indicate conspicuously, in a manner prescribed 
by the Commission under subsection (b) by July 1, 2008, 
a capital letter ‘E’ printed within a circle on the packaging 
of the fixture, and on the ballast contained in such fix-
ture.’’. 
(e) STANDARDS.—Section 325 of the Energy Policy 
and Conservation Act (42 U.S.C. 6295) is amended— 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00623
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
637 
HR 3221 PCS
has issued a rule granting a waiver under sub-
section (d) of this section; or 
‘‘(iii) is a level that, when evaluated in the 
baseline building design, the State has found to 
be feasible and cost-effective.’’. 
SEC. 9034. REAUTHORIZATION OF WEATHERIZATION AS-
SISTANCE PROGRAM. 
(a) AMENDMENT.—Section 422 of the Energy Con-
servation and Production Act (42 U.S.C. 6872) is amend-
ed by striking ‘‘$500,000,000 for fiscal year 2006, 
$600,000,000 for fiscal year 2007, and $700,000,000 for 
fiscal year 2008’’ and inserting ‘‘$1,200,000,000 for fiscal 
year 2007, and $1,400,000,000 for each of fiscal years 
2008, 2009, 2010, 2011, and 2012. From those sums, the 
Secretary is authorized to initiate an Alternative Delivery 
System Pilot Project to examine options for decreasing en-
ergy consumption associated with heating and cooling 
while increasing household participation by focusing on 
key energy saving components. Alternative Delivery Sys-
tem Pilot Projects should be undertaken in both hot and 
cold urban areas. In implementing the Alternative Deliv-
ery System Pilot Project, the Secretary shall consider: (1) 
the expected effectiveness and benefits of the proposed 
Pilot Project to low- and moderate-income energy con-
sumers; (2) the potential for replication of successful re-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00637
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
638 
HR 3221 PCS
sults; (3) the impact on the energy costs of those served; 
and (4) the extent of partnerships with other public and 
private entities that contribute to the resources and imple-
mentation of the program, including financial partner-
ships. Funding for such projects may equal up to two per-
cent of funding in any fiscal year, provided that no fund-
ing is utilized for such demonstrations in any fiscal year 
in which Weatherization appropriations are less than 
$275,000,000’’. 
(b) SUSTAINABLE ENERGY RESOURCES FOR CON-
SUMERS GRANTS.—(1) The Secretary of Energy may 
make funding available to local Weatherization agencies 
from amounts authorized under the amendment made by 
subsection (a) to expand the weatherization assistance 
program for residential buildings to include materials, 
benefits, and renewable and domestic energy technologies 
not currently covered by the program, provided that the 
State Weatherization grantee has certified that the appli-
cant has the capacity to carry out the proposed activities 
and that the grantee will include the project in its finan-
cial oversight of the Weatherization Assistance program. 
(2) In selecting the grants, the program shall give 
priority to— 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00638
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
639 
HR 3221 PCS
(A) the expected effectiveness and benefits of 
the proposed project to low- and moderate income 
energy consumers; 
(B) the potential for replication of successful 
results; 
(C) the impact on the health and safety and en-
ergy costs of those served; and 
(D) the extent of partnerships with other public 
and private entities that contribute to the resources 
and implementation of the program, including finan-
cial partnerships. 
(3) Funding for such projects may equal up to two 
percent of funding in any fiscal year, provided that no 
funding is utilized for Sustainable Energy Resources for 
Consumers grants in any fiscal year in which Weatheriza-
tion appropriations are less than $275,000,000. 
SEC. 9035. RENEWABLE ENERGY REBATE PROGRAM STUDY. 
Not later than 120 days after the date of enactment 
of this Act, the Secretary of Energy shall conduct, and 
transmit to Congress a report on, a study regarding the 
rebate program described in section 206(c) of the Energy 
Policy Act of 2005. The study shall— 
(1) develop a plan for how such a rebate pro-
gram would be carried out if it were funded; and 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00639
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
640 
HR 3221 PCS
(2) determine the minimum amount of funding 
the program would need to receive in order to ac-
complish the goal of encouraging consumers to in-
stall renewable energy systems in their homes or 
small businesses. 
PART 4—COMMERCIAL AND FEDERAL BUILDING 
EFFICIENCY 
SEC. 9041. DEFINITIONS. 
In this part: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of General Serv-
ices. 
(2) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the Green Building Advi-
sory 
Committee 
established 
under 
section 
9042(c)(2). 
(3) COMMERCIAL DIRECTOR.—The term ‘‘Com-
mercial Director’’ means the individual appointed to 
the position established under section 9043(a). 
(4) CONSORTIUM.—The term ‘‘Consortium’’ 
means the High-Performance Green Building Part-
nership Consortium created in response to section 
9042(c)(1) to represent the private sector in a pub-
lic-private partnership to promote high-performance 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00640
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
641 
HR 3221 PCS
green buildings and zero-net-energy commercial 
buildings. 
(5) FEDERAL DIRECTOR.—The term ‘‘Federal 
Director’’ means the individual appointed to the po-
sition established under section 9042(a). 
(6) FEDERAL
FACILITY.—The term ‘‘Federal 
facility’’ means any building that is constructed, ren-
ovated, leased, or purchased in part or in whole for 
use by the Federal Government. 
(7) HIGH-PERFORMANCE
GREEN
BUILDING.— 
The term ‘‘high-performance green building’’ means 
a building that, during its life-cycle, as compared 
with similar buildings (as measured by Commercial 
Buildings Energy Consumption Survey or Residen-
tial Energy Consumption Survey data from the En-
ergy Information Agency)— 
(A) reduces energy, water, and material re-
source use; 
(B) improves indoor environmental quality, 
including reducing indoor pollution, improving 
thermal comfort, and improving lighting and 
acoustic environments that affect occupant 
health and productivity; 
(C) reduces negative impacts on the envi-
ronment throughout the life-cycle of the build-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00641
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
642 
HR 3221 PCS
ing, including air and water pollution and waste 
generation; 
(D) increases the use of environmentally 
preferable products, including biobased, recycled 
content, and nontoxic products with lower life- 
cycle impacts; 
(E) increases reuse and recycling opportu-
nities; 
(F) integrates systems in the building; 
(G) reduces the environmental and energy 
impacts of transportation through building loca-
tion and site design that support a full range 
of transportation choices for users of the build-
ing; and 
(H) considers indoor and outdoor effects of 
the building on human health and the environ-
ment, including— 
(i) improvements in worker produc-
tivity; 
(ii) the life-cycle impacts of building 
materials and operations; and 
(iii) other factors that the Federal Di-
rector or the Commercial Director consider 
to be appropriate. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00642
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
721 
HR 3221 PCS
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 
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 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00721
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
722 
HR 3221 PCS
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. 
‘‘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, 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00722
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
723 
HR 3221 PCS
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 
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 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00723
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
724 
HR 3221 PCS
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. 
‘‘(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. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00724
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
725 
HR 3221 PCS
‘‘(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-
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 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00725
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
737 
HR 3221 PCS
‘‘(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. 
‘‘(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. Waste Energy Recovery Incentive Grant Program. 
‘‘Sec. 375. Additional incentives for recovery, utilization and prevention of in-
dustrial waste energy. 
‘‘Sec. 376. Clean Energy Application Centers.’’. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00737
Fmt 6652
Sfmt 6211
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
738 
HR 3221 PCS
PART 6—ENERGY EFFICIENCY OF PUBLIC 
INSTITUTIONS 
SEC. 9071. SHORT TITLE. 
This part may be cited as the ‘‘Sustainable Energy 
Institutional Infrastructure Act of 2007’’. 
SEC. 9072. FINDINGS. 
The Congress finds the following: 
(1) Many institutional entities own and operate, 
or are served by, district energy systems. 
(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, 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00738
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
739 
HR 3221 PCS
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-
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. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00739
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
740 
HR 3221 PCS
(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. 9073. DEFINITIONS. 
For purposes of this part— 
(1) the term ‘‘CHP’’ means combined heat and 
power, or the generation of electric energy and heat 
in a single, integrated system; 
(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 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00740
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
741 
HR 3221 PCS
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). 
SEC. 9074. 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; 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00741
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
772 
HR 3221 PCS
before the Federal Energy Regulatory Commission and 
other Federal and State agencies as it deems necessary 
to accomplish its mission. 
(d) TERMS OF OFFICE.—The term of office of each 
Commissioner shall be 5 years, and any member may be 
reappointed for not more than one additional term of 5 
years. 
(e) TERMINATION.—Unless extended by Act of Con-
gress, the Commission shall complete its work and cease 
its activities by January 1, 2020, or on such earlier date 
that the Commission determines that the proliferation, 
evolution, and adaptation of Smart Grid technologies no 
longer require Federal leadership and assistance. 
(f) COMPENSATION OF MEMBERS.—Each member of 
the Commission who is not an officer or employee of the 
Federal Government shall be compensated at a rate equal 
to the daily equivalent of the annual rate of basic pay pre-
scribed for level III of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each day (in-
cluding travel time) during which such member is engaged 
in the performance of the duties of the Commission. All 
members of the Commission who are officers or employees 
of the United States shall serve without compensation in 
addition to that received for their services as officers or 
employees of the United States. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00772
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
773 
HR 3221 PCS
(g) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of services 
for the Commission. 
(h) MEETINGS.—The Commission shall meet at the 
call of the Chairman. Commission meetings shall be open 
to the public, but as many as three Commissioners may 
meet in private without constituting a meeting requiring 
public access. 
(i) APPLICABILITY
OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5 
U.S.C. App. 1 et seq.) shall not apply to the Commission. 
(j) OFFICES AND STAFF.—The Secretary of Energy 
shall provide the Commission with offices in the Depart-
ment of Energy and shall make available to the Commis-
sion the expertise and staff resources of both the Office 
of Electricity Delivery and Energy Reliability and the Of-
fice of Energy Efficiency and Renewable Energy. 
(k) DETAIL
OF GOVERNMENT EMPLOYEES.—Any 
Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00773
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
774 
HR 3221 PCS
be without interruption or loss of civil service status or 
privilege. 
(l) EXECUTIVE DIRECTOR.—The Secretary of En-
ergy shall appoint an officer of the Senior Executive Serv-
ice to serve as Executive Director to the Commission. 
(m) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairman of the Commission may 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of such title. 
(n) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out this part. Upon request of 
the Chairman of the Commission, the head of such depart-
ment or agency shall furnish such information to the Com-
mission. The Commission shall maintain the same level of 
confidentiality for such information made available under 
this subsection as is required of the head of the depart-
ment or agency from which the information was obtained. 
(o) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00774
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
775 
HR 3221 PCS
the same conditions as other departments and agencies of 
the Federal Government. 
SEC. 9113. GRID ASSESSMENT AND REPORT. 
(a) IN GENERAL.—The Grid Modernization Commis-
sion shall undertake, and update on a biannual basis, an 
assessment of the progress toward modernizing the elec-
tric system from generation to ultimate electricity con-
sumption, including implementation of ‘‘smart grid’’ tech-
nologies. The Commission shall prepare this assessment 
with input from stakeholders including but not limited to 
electric utilities, other Federal offices, States, companies 
involved in developing related technologies, the National 
Electric Reliability Organization recognized by the Federal 
Energy Regulatory Commission, electricity customers, and 
persons with special related expertise. The assessment 
shall include each of the following: 
(1) An updated inventory of existing smart grid 
systems. 
(2) A description of the condition of existing 
grid infrastructure and procedures for determining 
the need for new infrastructure; 
(3) A description of any plans of States, utili-
ties, or others to introduce smart grid systems and 
technologies. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00775
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
776 
HR 3221 PCS
(4) An assessment of constraints to deployment 
of smart grid technology and most important oppor-
tunities for doing so, including the readiness or lack 
thereof of enabling technologies. 
(5) An assessment of remaining potential bene-
fits resulting from introduction of smart grid sys-
tems, including benefits related to demand-side effi-
ciencies, improved reliability, improved security, re-
duced prices, and improved integration of renewable 
resources. 
(6) Recommendations for legislative or regu-
latory changes to remove barriers to and create in-
centives for smart grid system implementation and 
to meet the policy goals of this title. 
(7) An estimate of the potential costs required 
for modernization of the electricity grid, with speci-
ficity relative to geographic areas and components of 
the grid, together with an assessment of whether the 
necessary funds would be available to meet such 
costs, and the sources of such funds. 
(8) An assessment of ancillary benefits to other 
economic sectors or activities beyond the electricity 
sector, such as potential broadband service over 
power lines. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00776
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
795 
HR 3221 PCS
SEC. 9116. SMART GRID INFORMATION REQUIREMENTS. 
(a) FINDINGS.—Congress finds that Smart Grid 
technologies will require, for their optimum use by elec-
tricity consumers, that such consumers have access to in-
formation on prices, use, and other factors in possession 
of their utilities or electricity suppliers, in order to assist 
the customers in optimizing their electricity use and lim-
iting the associated environmental impacts. 
(b) DEVELOPMENT OF RULES.—The Commission on 
Grid Modernization shall within one year of its initial 
meeting develop and declare a standard for the collection, 
presentation and delivery of information to electricity pur-
chasers as required by the standard under section 
111(d)(21) of the Public Utility Regulatory Policies Act 
of 1978. Such standard shall provide purchasers with dif-
ferent access options for such information. Such standard 
shall be developed with input from the Secretary of En-
ergy, the Federal Energy Regulatory Commission, the Ad-
ministrator of the Environmental Protection Agency, 
States, and stakeholders representing, but not limited to, 
electric utilities, energy efficiency and demand response 
experts, environmental organizations and consumer orga-
nizations. 
(c) APPLICATION
OF SMART GRID INFORMATION 
STANDARD
TO FEDERAL ENTITIES
AND WHOLESALE 
MARKETS.—Within 60 days of the declaration of the 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00795
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
796 
HR 3221 PCS
standard under subsection (b), the Federal Energy Regu-
latory Commission shall propose a rule under which all 
public utilities, with respect to federally jurisdictional sales 
for resale of electricity in interstate commerce, and all ap-
proved regional transmission organizations subject to its 
jurisdiction, will implement those elements of the Smart 
Grid information standard developed pursuant to this sec-
tion that the Commission determines to be relevant and 
to add value for purchasers of wholesale power or those 
utilizing interstate transmission. The Tennessee Valley 
Authority, Bonneville Power Administration, and Federal 
power administrations shall, within 90 days of the adop-
tion of a final rule by the Commission, adopt it for their 
own sales or transmission of electricity. 
SEC. 9117. STATE CONSIDERATION OF INCENTIVES FOR 
SMART GRID. 
(a) CONSIDERATION OF ADDITIONAL STANDARDS.— 
Section 111(d) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding 
at the end: 
‘‘(16) UTILITY INVESTMENT IN SMART GRID IN-
VESTMENTS.—Each electric utility shall prior to un-
dertaking investments in non-advanced grid tech-
nologies demonstrate that alternative investments in 
advanced grid technologies have been considered, in-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00796
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
797 
HR 3221 PCS
cluding from a standpoint of cost-effectiveness, 
where such cost-effectiveness considers costs and 
benefits on a life-cycle basis. 
‘‘(17) UTILITY COST OF SMART GRID INVEST-
MENTS.—Each electric utility shall be permitted 
to— 
‘‘(A) recover from ratepayers the capital 
and operating expenditures and other costs of 
the utility for qualified smart grid system, in-
cluding a reasonable rate of return on the cap-
ital expenditures of the utility for a qualified 
smart grid system, and 
‘‘(B) recover in a timely manner the re-
maining book-value costs of equipment rendered 
obsolete by the deployment of a qualified smart 
grid system, based on the remaining depreciable 
life of the obsolete equipment. 
‘‘(18) RATE DESIGN MODIFICATIONS TO PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The rates allowed to 
be charged by any electric utility shall— 
‘‘(i) align utility incentives with the 
delivery of cost-effective energy efficiency; 
and 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00797
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
798 
HR 3221 PCS
‘‘(ii) promote energy efficiency invest-
ments. 
‘‘(B) POLICY OPTIONS.—In complying with 
subparagraph (A), each State regulatory au-
thority and each nonregulated utility shall con-
sider— 
‘‘(i) removing the throughput incen-
tive and other regulatory and management 
disincentives to energy efficiency; 
‘‘(ii) providing utility incentives for 
the successful management of energy effi-
ciency programs; 
‘‘(iii) including the impact on adoption 
of energy efficiency as 1 of the goals of re-
tail rate design, recognizing that energy ef-
ficiency must be balanced with other objec-
tives; 
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each cus-
tomer class; 
‘‘(v) allowing timely recovery of en-
ergy efficiency-related costs; and 
‘‘(vi) offering home energy audits, 
publicizing the financial and environmental 
benefits associated with making home en-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00798
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
799 
HR 3221 PCS
ergy efficiency improvements, and edu-
cating homeowners about all existing Fed-
eral and State incentives, including the 
availability of low-cost loans, that make 
home energy efficiency improvements more 
affordable. 
‘‘(19) SMART GRID INFORMATION.— 
‘‘(A) 
STANDARD.—All 
electricity 
pur-
chasers shall be provided direct access, both in 
written and electronic machine-readable form, 
to information from their electricity provider as 
provided in subparagraph (B). 
‘‘(B) 
INFORMATION.—Information 
pro-
vided under this section shall conform to the 
standardized rules issued by the Commission on 
Grid Modernization under section 9116(b) of 
the Smart Grid Facilitation Act of 2007 and 
shall include: 
‘‘(i) PRICES.—Purchasers and other 
interested persons shall be provided with 
information on: 
‘‘(I) Time-based electricity prices 
in the wholesale electricity market; 
and 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00799
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
832 
HR 3221 PCS
supplies of domestically-produced renewable fuel 
in any area of the United States; and 
(H) any recommendations for any addi-
tional legal authorities for Federal agencies to 
ensure the reliable railroad transportation of 
adequate supplies of domestically-produced re-
newable fuel at reasonable prices. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the 
Senate and the Committee on Energy and Commerce of 
the House of Representatives a report that describes the 
results of the study conducted under subsection (a). 
SEC. 9307. STANDARD SPECIFICATIONS FOR BIODIESEL. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by redesignating subsection (s) as subsection 
(t), redesignating subsection (r) (relating to conversion as-
sistance for cellulosic biomass, waste-derived ethanol, ap-
proved renewable fuels) as subsection (s) and by adding 
the following new subsection at the end thereof: 
‘‘(u) STANDARD SPECIFICATIONS FOR BIODIESEL.— 
Unless the American Society for Testing and Materials 
has adopted a standard for diesel fuel containing 20 per-
cent biodiesel, not later than 1 year after the date of en-
actment of this subsection, the Administrator shall initiate 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00832
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
833 
HR 3221 PCS
a rulemaking establishing a series of uniform per gallon 
fuel standards for categories of fuels that contain bio-
diesel, including one standard for fuel containing 20 per-
cent biodiesel, and designate an identification number for 
fuel meeting each standard in each such category so that 
vehicle manufacturers are able to design engines to use 
fuel meeting one or more of such standards. The Adminis-
trator shall finalize the standards under this subsection 
18 months after the date of the enactment of this sub-
section.’’. 
SEC. 9308. GRANTS FOR CELLULOSIC ETHANOL PRODUC-
TION. 
Subsection (s) of section 211 of the Clean Air Act 
(as added by section 1512 of the Energy Policy Act of 
2005) (and as redesignated by section 9307 of this Act), 
relating to conversion assistance for cellulosic biomass, 
waste-derived ethanol, and approved renewable fuels, is 
amended as follows: 
(1) By adding the following new subparagraphs 
at the end of paragraph (3): 
‘‘(D) $500,000,000 for fiscal year 2009. 
‘‘(E) $500,000,000 for fiscal year 2010.’’. 
(2) By adding the following new paragraph at 
the end thereof: 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00833
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
834 
HR 3221 PCS
‘‘(5) CRITERIA.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions that promote feedstock diversity and the geo-
graphic dispersion of production facilities.’’. 
SEC. 9309. CONSUMER EDUCATION CAMPAIGN RELATING 
TO FLEXIBLE-FUEL VEHICLES. 
The Secretary of Transportation, in consultation with 
the Secretary of Energy, shall carry out an education pro-
gram to inform consumers about which motor vehicles are 
flexible-fuel vehicles and how to exercise their opportunity 
to choose E85 or B20. As part of such program, the Sec-
retary of Transportation may coordinate with motor vehi-
cle manufacturers to notify owners of flexible-fuel vehicles 
of locations where E85 and B20 are sold in their area. 
SEC. 9310. REVIEW OF NEW RENEWABLE FUELS OR NEW 
RENEWABLE FUEL ADDITIVES. 
Notwithstanding any other provision of law, a waiver 
under section 211(f)(4) of the Clean Air Act for any re-
newable fuel or renewable fuel additive shall not be consid-
ered granted unless the Administrator of the Environment 
Protection Agency, following a public notice and comment 
period, takes final action granting the application for a 
waiver based on an application of the section 211(f)(4) 
standards and criteria with respect to emissions control 
devices or systems and vehicle emissions standards to on- 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00834
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
835 
HR 3221 PCS
road and non-road engines and vehicles. The Adminis-
trator shall take final action on an application for a waiver 
no later than 270 days after the Administrator receives 
the application. 
SEC. 
9311. 
DOMESTIC 
MANUFACTURING 
CONVERSION 
GRANT PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘, flexible-fuel,’’ after 
‘‘production of efficient hybrid’’; and 
(B) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00835
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
836 
HR 3221 PCS
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section.’’. 
SEC. 9312. CELLULOSIC ETHANOL AND BIOFUELS RE-
SEARCH. 
There are authorized to be appropriated to the Sec-
retary of Energy $50,000,000 for fiscal year 2008, to re-
main available until expended, for cellulosic ethanol and 
biofuels research and development grants to 10 entities 
from among 1890 land grant colleges, Historically Black 
Colleges or Universities, Tribal serving institutions, or 
Hispanic serving institutions, selected by the Secretary of 
Energy to receive a grant under this section through a 
peer-reviewed competitive process. The selected entities 
shall then collaborate with one of the Department of Ener-
gy’s Office of Science Bioenergy Research Centers. 
SEC. 9313. FEDERAL FLEET FUELING CENTERS. 
(a) IN GENERAL.—Not later than January 1, 2010, 
the head of each Federal agency shall install at least 1 
renewable fuel pump at each Federal fleet fueling center 
in the United States under the jurisdiction of the head 
of the Federal agency. 
(b) REPORT.—Not later than October 31 of the first 
calendar year beginning after the date of the enactment 
of this Act, and each October 31 thereafter, the President 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00836
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
914 
HR 3221 PCS
effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990). 
(4) PUBLIC
ELECTRIC
UTILITY
PROPERTY.— 
The amendments made by subsection (d) shall apply 
to periods after June 20, 2007, in taxable years end-
ing after such date, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 
1986 (as in effect on the day before the date of the 
enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 11004. NEW CLEAN RENEWABLE ENERGY BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 (relating to credits against tax) is amended by add-
ing at the end the following new subpart: 
‘‘Subpart I—Qualified Tax Credit Bonds 
‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 
‘‘Sec. 54B. New clean renewable energy bonds. 
‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CRED-
IT BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 
a qualified tax credit bond on one or more credit allowance 
dates of the bond during any taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to 
such dates. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00914
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
915 
HR 3221 PCS
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
credit allowance date for a qualified tax credit bond 
is 25 percent of the annual credit determined with 
respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified tax credit 
bond is the product of— 
‘‘(A) the applicable credit rate, multiplied 
by 
‘‘(B) the outstanding face amount of the 
bond. 
‘‘(3) APPLICABLE CREDIT RATE.—For purposes 
of paragraph (2), the applicable credit rate is the 
rate which the Secretary estimates will permit the 
issuance of qualified tax credit bonds with a speci-
fied maturity or redemption date without discount 
and without interest cost to the qualified issuer. The 
applicable credit rate with respect to any qualified 
tax credit bond shall be determined as of the first 
day on which there is a binding, written contract for 
the sale or exchange of the bond. 
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00915
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
916 
HR 3221 PCS
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined 
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit 
otherwise determined based on the portion of the 3- 
month period during which the bond is outstanding. 
A similar rule shall apply when the bond is redeemed 
or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00916
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
917 
HR 3221 PCS
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes 
of this section— 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 
‘qualified tax credit bond’ means a new clean renew-
able energy bond which is part of an issue that 
meets the requirements of paragraphs (2), (3), (4), 
(5), and (6). 
‘‘(2) SPECIAL RULES RELATING TO EXPENDI-
TURES.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if, as of the date of issuance, the 
issuer reasonably expects— 
‘‘(i) 100 percent or more of the avail-
able project proceeds to be spent for 1 or 
more qualified purposes within the 3-year 
period beginning on such date of issuance, 
and 
‘‘(ii) a binding commitment with a 
third party to spend at least 10 percent of 
such available project proceeds will be in-
curred within the 6-month period begin-
ning on such date of issuance. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00917
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
918 
HR 3221 PCS
‘‘(B) 
FAILURE
TO
SPEND
REQUIRED 
AMOUNT
OF
BOND
PROCEEDS
WITHIN
YEARS.— 
‘‘(i) IN GENERAL.—To the extent that 
less than 100 percent of the available 
project proceeds of the issue are expended 
by the close of the expenditure period for 
1 or more qualified purposes, the issuer 
shall redeem all of the nonqualified bonds 
within 90 days after the end of such pe-
riod. For purposes of this paragraph, the 
amount of the nonqualified bonds required 
to be redeemed shall be determined in the 
same manner as under section 142. 
‘‘(ii) 
EXPENDITURE
PERIOD.—For 
purposes of this subpart, the term ‘expend-
iture period’ means, with respect to any 
issue, the 3-year period beginning on the 
date of issuance. Such term shall include 
any extension of such period under clause 
(iii). 
‘‘(iii) EXTENSION OF PERIOD.—Upon 
submission of a request prior to the expira-
tion of the expenditure period (determined 
without regard to any extension under this 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00918
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
919 
HR 3221 PCS
clause), the Secretary may extend such pe-
riod if the issuer establishes that the fail-
ure to expend the proceeds within the 
original expenditure period is due to rea-
sonable cause and the expenditures for 
qualified purposes will continue to proceed 
with due diligence. 
‘‘(C) QUALIFIED PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
means a purpose specified in section 54B(a)(1). 
‘‘(D) REIMBURSEMENT.—For purposes of 
this subtitle, available project proceeds of an 
issue shall be treated as spent for a qualified 
purpose if such proceeds are used to reimburse 
the issuer for amounts paid for a qualified pur-
pose after the date that the Secretary makes an 
allocation of bond limitation with respect to 
such issue, but only if— 
‘‘(i) prior to the payment of the origi-
nal expenditure, the issuer declared its in-
tent to reimburse such expenditure with 
the proceeds of a qualified tax credit bond, 
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the issuer 
adopts an official intent to reimburse the 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00919
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
920 
HR 3221 PCS
original expenditure with such proceeds, 
and 
‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid. 
‘‘(3) REPORTING.—An issue shall be treated as 
meeting the requirements of this paragraph if the 
issuer of qualified tax credit bonds submits reports 
similar to the reports required under section 149(e). 
‘‘(4) SPECIAL
RULES
RELATING
TO
ARBI-
TRAGE.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if the issuer satisfies the require-
ments of section 148 with respect to the pro-
ceeds of the issue. 
‘‘(B) SPECIAL
RULE
FOR
INVESTMENTS 
DURING EXPENDITURE PERIOD.—An issue shall 
not be treated as failing to meet the require-
ments of subparagraph (A) by reason of any in-
vestment of available project proceeds during 
the expenditure period. 
‘‘(C) 
SPECIAL
RULE
FOR
RESERVE 
FUNDS.—An issue shall not be treated as fail-
ing to meet the requirements of subparagraph 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00920
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
921 
HR 3221 PCS
(A) by reason of any fund which is expected to 
be used to repay such issue if— 
‘‘(i) such fund is funded at a rate not 
more rapid than equal annual installments, 
‘‘(ii) such fund is funded in a manner 
that such fund will not exceed the amount 
necessary to repay the issue if invested at 
the maximum rate permitted under clause 
(iii), and 
‘‘(iii) the yield on such fund is not 
greater than the discount rate determined 
under paragraph (5)(B) with respect to the 
issue. 
‘‘(5) MATURITY LIMITATION.— 
‘‘(A) IN GENERAL.—An issue shall not be 
treated as meeting the requirements of this 
paragraph if the maturity of any bond which is 
part of such issue exceeds the maximum term 
determined by the Secretary under subpara-
graph (B). 
‘‘(B) MAXIMUM TERM.—During each cal-
endar month, the Secretary shall determine the 
maximum term permitted under this paragraph 
for bonds issued during the following calendar 
month. Such maximum term shall be the term 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00921
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
962 
HR 3221 PCS
on the day on which wages are paid to employees, 
an amount equal to the amount of the credit allowed 
to such entity under subsection (a) with respect to 
such wages, but only if such governmental unit de-
ducts and withholds wages for such payroll period 
under section 3401 (relating to wage withholding). 
‘‘(e) REPORTING.—The Governor of the State of New 
York and the Mayor of the City of New York, New York, 
shall jointly submit to the Secretary an annual report— 
‘‘(1) which certifies— 
‘‘(A) the qualifying project expenditure 
amount for the calendar year, and 
‘‘(B) the amount allocated to each New 
York Liberty Zone governmental unit under 
subsection (b)(3) for the calendar year, and 
‘‘(2) includes such other information as the 
Secretary may require to carry out this section. 
‘‘(f) GUIDANCE.—The Secretary may prescribe such 
guidance as may be necessary or appropriate to ensure 
compliance with the purposes of this section.’’. 
(b) TERMINATION OF SPECIAL ALLOWANCE AND EX-
PENSING.—Subparagraph (A) of section 1400K(b)(2), as 
redesignated by subsection (a), is amended by striking the 
parenthetical therein and inserting ‘‘(in the case of non-
residential real property and residential rental property, 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00962
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
963 
HR 3221 PCS
the date of the enactment of the Renewable Energy and 
Energy Conservation Tax Act of 2007 or, if acquired pur-
suant to a binding contract in effect on such enactment 
date, December 31, 2009)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 38(c)(3)(B) is amended by striking 
‘‘section 
1400L(a)’’ 
and 
inserting 
‘‘section 
1400K(a)’’. 
(2) Section 168(k)(2)(D)(ii) is amended by 
striking ‘‘section 1400L(c)(2)’’ and inserting ‘‘sec-
tion 1400K(c)(2)’’. 
(3) The table of sections for part I of sub-
chapter Y of chapter 1 is amended by redesignating 
the item relating to section 1400L as an item relat-
ing to section 1400K and by inserting after such 
item the following new item: 
‘‘Sec. 1400L. New York Liberty Zone tax credits.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Subtitle B—Other Conservation 
Provisions 
SEC. 12011. QUALIFIED ENERGY CONSERVATION BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1, as added by section 104, is amend-
ed by adding at the end the following new section: 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00963
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
964 
HR 3221 PCS
‘‘SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS. 
‘‘(a) QUALIFIED ENERGY CONSERVATION BOND.— 
For purposes of this subchapter, the term ‘qualified en-
ergy conservation bond’ means any bond issued as part 
of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for one or more 
qualified conservation purposes, 
‘‘(2) the bond is issued by a State or local gov-
ernment, and 
‘‘(3) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated under subsection (a) by 
any issuer shall not exceed the limitation amount allocated 
to such issuer under subsection (d). 
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—There is a national qualified energy con-
servation bond limitation of $3,600,000,000. 
‘‘(d) ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—The limitation applicable 
under subsection (c) shall be allocated by the Sec-
retary among the States in proportion to the popu-
lation of the States. 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00964
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
965 
HR 3221 PCS
‘‘(2) ALLOCATIONS
TO
LARGEST
LOCAL
GOV-
ERNMENTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
State in which there is a large local govern-
ment, each such local government shall be allo-
cated a portion of such State’s allocation which 
bears the same ratio to the State’s allocation 
(determined without regard to this subpara-
graph) as the population of such large local 
government bears to the population of such 
State. 
‘‘(B) ALLOCATION OF UNUSED LIMITATION 
TO STATE.—The amount allocated under this 
subsection to a large local government may be 
reallocated by such local government to the 
State in which such local government is located. 
‘‘(C) LARGE
LOCAL
GOVERNMENT.—For 
purposes of this section, the term ‘large local 
government’ means any municipality or county 
if such municipality or county has a population 
of 100,000 or more. 
‘‘(3) ALLOCATION
TO
ISSUERS; RESTRICTION 
ON
PRIVATE
ACTIVITY
BONDS.—Any allocation 
under this subsection to a State or large local gov-
ernment shall be allocated by such State or large 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00965
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
966 
HR 3221 PCS
local government to issuers within the State in a 
manner that results in not less than 70 percent of 
the allocation to such State or large local govern-
ment being used to designate bonds which are not 
private activity bonds. 
‘‘(e) QUALIFIED
CONSERVATION
PURPOSE.—For 
purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified con-
servation purpose’ means any of the following: 
‘‘(A) Capital expenditures incurred for 
purposes of— 
‘‘(i) reducing energy consumption in 
publicly-owned buildings by at least 20 
percent, 
‘‘(ii) implementing green community 
programs, or 
‘‘(iii) rural development involving the 
production of electricity from renewable 
energy resources. 
‘‘(B) Expenditures with respect to research 
facilities, and research grants, to support re-
search in— 
‘‘(i) development of cellulosic ethanol 
or other nonfossil fuels, 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00966
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS
967 
HR 3221 PCS
‘‘(ii) technologies for the capture and 
sequestration of carbon dioxide produced 
through the use of fossil fuels, 
‘‘(iii) increasing the efficiency of exist-
ing technologies for producing nonfossil 
fuels, 
‘‘(iv) automobile battery technologies 
and other technologies to reduce fossil fuel 
consumption in transportation, or 
‘‘(v) technologies to reduce energy use 
in buildings. 
‘‘(C) Mass commuting facilities and related 
facilities that reduce the consumption of energy, 
including expenditures to reduce pollution from 
vehicles used for mass commuting. 
‘‘(D) Demonstration projects designed to 
promote the commercialization of— 
‘‘(i) green building technology, 
‘‘(ii) conversion of agricultural waste 
for use in the production of fuel or other-
wise, 
‘‘(iii) advanced battery manufacturing 
technologies, 
‘‘(iv) technologies to reduce peak use 
of electricity, or 
VerDate Aug 31 2005 
04:23 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00967
Fmt 6652
Sfmt 6201
E:\BILLS\H3221.PCS
H3221
bajohnson on PROD1PC77 with BILLS