(A) The assessments under subsection (d) 
are to be collected based on the amount of fossil 
fuel-based electricity delivered by each distribu-
tion utility. 
(B) Since many distribution utilities pur-
chase all or part of their retail consumer’s elec-
tricity needs from other entities, it may not be 
practical to determine the precise fuel mix for 
the power sold by each individual distribution 
utility. 
(C) It may be necessary to use average 
data, often on a regional basis with reference to 
Regional Transmission Organization (‘‘RTO’’) 
or NERC regions, to make the determinations 
necessary for making assessments. 
(2) DOE PROPOSED
RULE.—The Secretary, 
acting in close consultation with the Energy Infor-
mation Administration, shall issue for notice and 
comment a proposed rule to determine the level of 
fossil fuel electricity delivered to retail customers by 
each distribution utility in the United States during 
the most recent calendar year or other period deter-
mined to be most appropriate. Such proposed rule 
shall balance the need to be efficient, reasonably pre-
cise, and timely, taking into account the nature and 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
cost of data currently available and the nature of 
markets and regulation in effect in various regions 
of the country. Different methodologies may be ap-
plied in different regions if appropriate to obtain the 
best balance of such factors. 
(3) FINAL RULE.—Within 6 months after the 
date of enactment of this Act, and after opportunity 
for comment, the Secretary shall issue a final rule 
under this subsection for determining the level and 
type of fossil fuel-based electricity delivered to retail 
customers by each distribution utility in the United 
States during the appropriate period. In issuing 
such rule, the Secretary may consider opportunities 
and costs to develop new data sources in the future 
and issue recommendations for the Energy Informa-
tion Administration or other entities to collect such 
data. After notice and opportunity for comment the 
Secretary may, by rule, subsequently update and 
modify the methodology for making such determina-
tions. 
(4) ANNUAL
DETERMINATIONS.—Pursuant to 
the final rule issued under paragraph (3), the Sec-
retary shall make annual determinations of the 
amounts and types for each such utility and publish 
such determinations in the Federal Register. Such 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
determinations shall be used to conduct the ref-
erendum under subsection (b) and by the Corpora-
tion in applying any assessment under this sub-
section. 
(5) REHEARING AND JUDICIAL REVIEW.—The 
owner or operator of any distribution utility that be-
lieves that the Secretary has misapplied the method-
ology in the final rule in determining the amount 
and types of fossil fuel electricity delivered by such 
distribution utility may seek rehearing of such deter-
mination within 30 days of publication of the deter-
mination in the Federal Register. The Secretary 
shall decide such rehearing petitions within 30 days. 
The Secretary’s determinations following rehearing 
shall be final and subject to judicial review in the 
United States Court of Appeals for the District of 
Columbia. 
(g) COMPLIANCE
WITH
CORPORATION
ASSESS-
MENTS.—The Corporation may bring an action in the ap-
propriate court of the United States to compel compliance 
with an assessment levied by the Corporation under this 
section. A successful action for compliance under this sub-
section may also require payment by the defendant of the 
costs incurred by the Corporation in bringing such action. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(h) MIDCOURSE REVIEW.—Not later than 5 years 
following establishment of the Corporation, the Comp-
troller General of the United States shall prepare an anal-
ysis, and report to Congress, assessing the Corporation’s 
activities, including project selection and methods of dis-
bursement of assessed fees, impacts on the prospects for 
commercialization of carbon capture and storage tech-
nologies, adequacy of funding, and administration of 
funds. The report shall also make such recommendations 
as may be appropriate in each of these areas. The Cor-
poration shall reimburse the Government Accountability 
Office for the costs associated with performing this mid-
course review. 
(i) RECOVERY OF COSTS.— 
(1) IN GENERAL.—A distribution utility whose 
transmission, delivery, or sales of electric energy are 
subject to any form of rate regulation shall not be 
denied the opportunity to recover the full amount of 
the prudently incurred costs associated with com-
plying with this section, consistent with applicable 
State or Federal law. 
(2) RATEPAYER REBATES.—Regulatory authori-
ties that approve cost recovery pursuant to para-
graph (1) may order rebates to ratepayers to the ex-
tent that distribution utilities are reimbursed 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
undedicated or unassigned balances pursuant to sub-
section (d)(3). 
(j) TECHNICAL ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—There is established an 
advisory committee, to be known as the ‘‘Technical 
Advisory Committee’’. 
(2) MEMBERSHIP.—The Technical Advisory 
Committee shall be comprised of not less than 7 
members appointed by the Board from among aca-
demic institutions, national laboratories, independent 
research institutions, and other qualified institu-
tions. No member of the Committee shall be affili-
ated with EPRI or with any organization having 
members serving on the Board. At least one member 
of the Committee shall be appointed from among of-
ficers or employees of the Department of Energy 
recommended to the Board by the Secretary of En-
ergy. 
(3) CHAIRPERSON AND VICE CHAIRPERSON.— 
The Board shall designate one member of the Tech-
nical Advisory Committee to serve as Chairperson of 
the Committee and one to serve as Vice Chairperson 
of the Committee. 
(4) COMPENSATION.—The Board shall provide 
compensation to members of the Technical Advisory 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
Committee for travel and other incidental expenses 
and such other compensation as the Board deter-
mines to be necessary. 
(5) PURPOSE.—The Technical Advisory Com-
mittee shall provide independent assessments and 
technical evaluations, as well as make non-binding 
recommendations to the Board, concerning Corpora-
tion activities, including but not limited to the fol-
lowing: 
(A) Reviewing and evaluating the Corpora-
tion’s plans and budgets described in subsection 
(c)(8), as well as any other appropriate areas, 
which could include approaches to prioritizing 
technologies, appropriateness of engineering 
techniques, monitoring and verification tech-
nologies for storage, geological site selection, 
and cost control measures. 
(B) 
Making 
annual 
non-binding 
rec-
ommendations to the Board concerning any of 
the matters referred to in subparagraph (A), as 
well as what types of investments, scientific re-
search, or engineering practices would best fur-
ther to the goals of the Corporation. 
(6) PUBLIC AVAILABILITY.—All reports, evalua-
tions, and other materials of the Technical Advisory 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
Committee shall be made available to the public by 
the Board, without charge, at time of receipt by the 
Board. 
(k) LOBBYING RESTRICTIONS.—No funds collected 
by the Corporation shall be used in any manner for influ-
encing legislation or elections, except that the Corporation 
may recommend to the Secretary and the Congress 
changes in this section or other statutes that would fur-
ther the purposes of this section. 
(l) DAVIS-BACON COMPLIANCE.—The Corporation 
shall ensure that entities receiving grants, contracts, or 
other financial support from the Corporation for the 
project activities authorized by this section are in compli-
ance with the Davis-Bacon Act (40 U.S.C. 276a—276a– 
5). 
SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAP-
TURE AND SEQUESTRATION TECHNOLOGIES. 
(a) REGULATIONS.—Not later than 2 years after the 
date of enactment of this title, the Administrator shall 
promulgate regulations providing for the distribution of 
emission allowances allocated pursuant to section 782(f), 
pursuant to the requirements of this section, to support 
the commercial deployment of carbon capture and seques-
tration technologies in both electric power generation and 
industrial operations. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(b) ELIGIBILITY CRITERIA.—To be eligible to receive 
emission allowances under this section, the owner of a 
project must— 
(1) implement carbon capture and sequestration 
technology— 
(A) at an electric generating unit that— 
(i) has a nameplate capacity of 200 
megawatts or more; 
(ii) derives at least 50 percent of its 
annual fuel input from coal, petroleum 
coke, or any combination of these 2 fuels; 
and 
(iii) upon implementation of capture 
and sequestration technology, will capture 
and permanently sequester at least 50 per-
cent of the carbon dioxide, measured on an 
annual basis, that would be emitted by the 
unit absent capture and sequestration 
technology; or 
(B) at an industrial source that— 
(i) injects for sequestration not less 
than 50,000 tons per year of carbon diox-
ide; 
(ii) upon implementation, will capture 
and permanently sequester at least 50 per-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
cent of the carbon dioxide produced by the 
source, measured on an annual basis, that 
would be emitted in the absence of capture 
and sequestration technology; and 
(iii) does not produce a liquid trans-
portation fuel from a solid fossil-based 
feedstock; 
(2) permanently sequester carbon dioxide at a 
site that meets all applicable permitting and certifi-
cation requirements for geologic sequestration, or, 
pursuant to such requirements as the Administrator 
may prescribe by regulation, convert captured car-
bon dioxide to a stable form that will safely and per-
manently sequester such carbon dioxide; 
(3) meet all other applicable State and Federal 
permitting requirements; and 
(4) be located in the United States. 
(c) PHASE I DISTRIBUTION TO ELECTRIC GENER-
ATING UNITS.— 
(1) APPLICATION.—This subsection shall apply 
only to projects at the first 6 gigawatts of electric 
generating units, measured in cumulative generating 
capacity of such units. 
(2) DISTRIBUTION.—The Administrator shall 
distribute emission allowances allocated under sec-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
tion 782(a)(f) to each eligible project at an electric 
generating unit in a quantity equal to the quotient 
obtained by dividing— 
(A) the product obtained by multiplying— 
(i) the number of metric tons of car-
bon dioxide emissions avoided through cap-
ture and sequestration of emissions by the 
project, as determined pursuant to such 
methodology as the Administrator shall 
prescribe by regulation; and 
(ii) a bonus allowance value, pursuant 
to paragraph (3); by 
(B) the average fair market value of an 
emission allowance during the preceding year. 
(3) BONUS ALLOWANCE VALUES.— 
(A) For a generating unit achieving the 
capture and sequestration of 85 percent or 
more of the carbon dioxide that otherwise would 
be emitted by such unit, the bonus allowance 
value shall be $90. 
(B) The Administrator shall by regulation 
establish a bonus allowance value for each rate 
of lower capture and sequestration achieved by 
a generating unit, from a minimum of $50 per 
ton for a 50 percent rate and varying directly 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
with increasing rates of capture and sequestra-
tion up to $90 per ton for an 85 percent rate. 
(C) For a generating unit that achieves the 
capture and sequestration of at least 50 percent 
of the carbon dioxide that otherwise would be 
emitted by such unit by not later than January 
1, 2017, the otherwise applicable bonus allow-
ance value under this paragraph shall be in-
creased by $10, provided that the owner of such 
unit notifies the Administrator of its intent to 
achieve such rate of capture and sequestration 
by not later than January 1, 2012. 
(D) For a carbon capture and sequestra-
tion project sequestering in a geological forma-
tion for purposes of enhanced hydrocarbon re-
covery, the Administrator shall, by regulation, 
reduce the applicable bonus allowance value 
under this paragraph to reflect the lower net 
cost of the project when compared to sequestra-
tion into geological formations solely for pur-
poses of sequestration. 
(E) All monetary values in this section 
shall be adjusted for inflation. 
(d) PHASE II DISTRIBUTION TO ELECTRIC GENER-
ATING UNITS.— 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(1) APPLICATION.—This subsection shall apply 
only to the distribution of emission allowances to 
carbon capture and sequestration projects at electric 
generating units after the capacity threshold identi-
fied in subsection (c)(1) is reached. 
(2) REGULATIONS.—Not later than 2 years 
prior to the date on which the capacity threshold 
identified in subsection (c)(1) is projected to be 
reached, the Administrator shall promulgate regula-
tions to govern the distribution of emission allow-
ances to eligible projects under this subsection. 
(3) REVERSE AUCTIONS.— 
(A) IN GENERAL.—Except as provided in 
paragraph (4), the regulations promulgated 
under paragraph (2) shall provide for the dis-
tribution of emission allowances to eligible 
projects under this subsection through reverse 
auctions, which shall be held no less frequently 
than once each calendar year. The Adminis-
trator may establish a separate auction for each 
of no more than 5 different project categories, 
defined on the basis of coal type, capture tech-
nology, geological formation type, new unit 
versus retrofit application, such other factors as 
the Administrator may prescribe, or any com-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
bination thereof. The Administrator may estab-
lish appropriate minimum rates of capture and 
sequestration in implementing this paragraph. 
(B) AUCTION PROCESS.—At each reverse 
auction— 
(i) the Administrator shall solicit bids 
from eligible entities; 
(ii) eligible entities participating in 
the auction shall submit a bid including 
the desired level of carbon dioxide seques-
tration incentive per ton and the estimated 
quantity of carbon dioxide that the project 
will permanently sequester over 10 years; 
and 
(iii) the Administrator shall select 
bids, within each auction, for the seques-
tration amount submitted, beginning with 
the eligible entity submitting the bid for 
the lowest level of sequestration incentive 
on a per ton basis and meeting such other 
requirements as the Administrator may 
specify, until the amount of funds available 
for the reverse auction is committed. 
(C) FORM
OF
DISTRIBUTION.—The Ad-
ministrator shall provide deployment incentives 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
to eligible entities selected through a reverse 
auction under this paragraph pursuant to a for-
mula equivalent to that described in subsection 
(c)(2), except that the incentive level that is bid 
by the entity shall be substituted for the bonus 
allowance value. 
(4) ALTERNATIVE DISTRIBUTION METHOD.— 
(A) IN
GENERAL.—If the Administrator 
determines that reverse auctions would not pro-
vide for efficient and cost-effective commercial 
deployment of carbon capture and sequestration 
technologies, the Administrator may instead, 
through regulations promulgated under para-
graph (2) or (5), prescribe a schedule for the 
award of bonus allowances to eligible projects 
under this subsection, in accord with the re-
quirements of this paragraph. 
(B) MULTIPLE TRANCHES.—The Adminis-
trator shall divide emission allowances available 
for distribution to eligible projects into a series 
of tranches, each supporting the deployment of 
a specified quantity of cumulative electric gen-
erating capacity utilizing carbon capture and 
sequestration technology, each of which shall 
not be greater than 6 gigawatts. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(C) METHOD OF DISTRIBUTION.—The Ad-
ministrator shall distribute emission allowances 
within each tranche, on a first-come, first- 
served basis— 
(i) based on the date of full-scale op-
eration of capture and sequestration tech-
nology; and 
(ii) pursuant to a formula, similar to 
that set forth in subsection (c)(2) (except 
that the Administrator shall prescribe 
bonus allowance values different than those 
set forth in subsection (c)(2)), establishing 
the number of allowances to be distributed 
per ton of carbon dioxide permanently se-
questered by the project. 
(D) REQUIREMENTS.—For each tranche 
established pursuant to subparagraph (A), the 
Administrator shall establish a schedule for dis-
tributing emission allowances that— 
(i) is based on a sliding scale that 
provides higher bonus allowance values for 
projects achieving higher rates of capture 
and sequestration; 
(ii) for each capture and sequestration 
rate, establishes a bonus allowance value 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
that is lower than that established for such 
rate in the previous tranche (or, in the 
case of the first tranche, than that estab-
lished for such rate under subsection 
(c)(1)); and 
(iii) may establish different bonus al-
lowance levels for no more than 5 different 
project categories, defined by coal type, 
capture technology, geological formation 
type, new unit versus retrofit application, 
such other factors as the Administrator 
may prescribe, or any combination thereof. 
(E) CRITERIA FOR ESTABLISHING BONUS 
ALLOWANCE VALUES.—In setting bonus allow-
ance values under this paragraph, the Adminis-
trator shall seek to cover no more than the rea-
sonable incremental capital and operating costs 
of a project that are attributable to implemen-
tation of carbon capture, transportation, and 
sequestration technologies, taking into ac-
count— 
(i) the reduced cost of compliance 
with section 722 of this Act; 
(ii) the reduced cost associated with 
sequestering in a geological formation for 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
purposes of enhanced hydrocarbon recovery 
when compared to sequestration into geo-
logical formations solely for purposes of se-
questration; 
(iii) the relevant factors defining the 
project category; and 
(iv) such other factors as the Admin-
istrator determines are appropriate. 
(5) REVISION OF REGULATIONS.—The Adminis-
trator shall review, and as appropriate revise, the 
applicable regulations under this subsection no less 
frequently than every 8 years. 
(e) LIMITS FOR CERTAIN ELECTRIC GENERATING 
UNITS.— 
(1) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘covered EGU’’ and ‘‘initially per-
mitted’’ shall have the meaning given those terms in 
section 812 of this Act. 
(2) COVERED
EGUS
INITIALLY
PERMITTED 
FROM
2009
THROUGH
2015.—For a covered EGU 
that is initially permitted on or after January 1, 
2009, and before January 1, 2015, the Adminis-
trator shall reduce the quantity of emission allow-
ances that such covered EGU would otherwise be eli-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
gible to receive under this section by the product 
of— 
(A) 20 percent; and 
(B) the number of years between— 
(i) the earlier of January 1, 2020, or 
the date that is 5 years after the com-
mencement of operation of such covered 
EGU; and 
(ii) the first year that such covered 
EGU achieves (and thereafter maintains) 
the capture and permanent sequestration 
of at least 50 percent of the carbon diox-
ide, measured on an annual basis, that 
such covered EGU would emit in the ab-
sence of carbon capture and sequestration 
technology. 
(3) COVERED
EGUS
INITIALLY
PERMITTED 
FROM 2015 THROUGH 2020.—A covered EGU that is 
initially permitted on or after January 1, 2015, and 
before January 1, 2020, shall be ineligible to receive 
emission allowances pursuant to this section if such 
unit, upon commencement of operations or there-
after, does not achieve and maintain the capture and 
permanent sequestration of at least 50 percent of 
the carbon dioxide, measured on an annual basis, 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
that such covered EGU would emit in the absence 
of capture and sequestration technology. 
(f) INDUSTRIAL SOURCES.— 
(1) ALLOWANCES.—The Administrator may 
distribute not more than 15 percent of the allow-
ances allocated under section 782(a)(f) for any vin-
tage year to eligible industrial sources to support the 
commercial-scale deployment of carbon capture and 
sequestration technologies at such sources. 
(2) DISTRIBUTION.—The Administrator shall, 
by regulation, prescribe requirements for the dis-
tribution of emission allowances to industrial sources 
under this subsection, based on a bonus allowance 
formula that awards allowances to qualifying 
projects on the basis of tons of carbon dioxide cap-
tured and permanently sequestered. The Adminis-
trator may provide for the distribution of emission 
allowances pursuant to— 
(A) a reverse auction method, similar to 
that described under subsection (d)(3), includ-
ing the use of separate auctions for different 
project categories; or 
(B) an incentive schedule, similar to that 
described under subsection (d)(4), which shall 
ensure that incentives are set so as to satisfy 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
the 
requirement 
described 
in 
subsection 
(d)(4)(E). 
(3) REVISION OF REGULATIONS.—The Adminis-
trator shall review, and as appropriate revise, the 
applicable regulations under this subsection no less 
frequently than every 8 years. 
(g) LIMITATIONS.—A qualifying project may receive 
annual emission allowances under this section only for the 
first 10 years of operation. No greater than 72 gigawatts 
of total cumulative generating capacity (including indus-
trial applications, measured by such equivalent metric as 
the Administrator may designate) may receive emission al-
lowances under this section. Upon reaching the limit de-
scribed in the preceding sentence, the Administrator shall 
auction, pursuant to section 791, any emission allowances 
that are allocated for carbon capture and sequestration de-
ployment under section 782(a)(f) and are not yet obligated 
under this section. 
(h) EXHAUSTION OF ACCOUNT AND ANNUAL ROLL- 
OVER OF SURPLUS ALLOWANCES.— 
(1) In distributing bonus allowances under this 
subsection, the Administrator shall ensure that 
qualifying projects receiving allowances receive dis-
tributions for 10 years. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(2) If the Administrator determines that the al-
lowances allocated under section 782(a)(f) with a 
vintage year that matches the year of distribution 
will be exhausted once the estimated full 10-year dis-
tributions will be provided to current eligible partici-
pants, the Administrator shall provide to new eligible 
projects allowances from vintage years after the year 
of the distribution. 
(i) DAVIS-BACON COMPLIANCE.—All laborers and 
mechanics employed on projects funded directly by or as-
sisted in whole or in part by this section through the use 
of bonus allowances shall be paid wages at rates not less 
than those prevailing on projects of a character similar 
in the locality as determined by the Secretary of Labor 
in accordance with subchapter IV, chapter 31, part A of 
subtitle II of title 40, United States Code. With respect 
to the labor standards specified in this section, the Sec-
retary of Labor shall have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 
United States Code. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED 
POWER PLANTS. 
(a) IN GENERAL.—Title VIII of the Clean Air Act 
(as added by section 331 of this Act) is amended by add-
ing the following new section after section 811: 
‘‘SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL- 
FIRED POWER PLANTS. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) COVERED EGU.—The term ‘covered EGU’ 
means a utility unit that is required to have a per-
mit under section 503(a) and is authorized under 
state or federal law to derive at least 30 percent of 
its annual heat input from coal, petroleum coke, or 
any combination of these fuels. 
‘‘(2) INITIALLY
PERMITTED.—The term ‘ini-
tially permitted’ means that the owner or operator 
has received a Clean Air Act preconstruction ap-
proval or permit, for the covered EGU as a new (not 
a modified) source, but administrative review or ap-
peal of such approval or permit has not been ex-
hausted. A subsequent modification of any such ap-
proval or permits, ongoing administrative or court 
review, appeals, or challenges, or the existence or 
tolling of any time to pursue further review, appeals, 
or challenges shall not affect the date on which a 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
covered EGU is considered to be initially permitted 
under this paragraph. 
‘‘(b) STANDARDS.—(1) A covered EGU that is ini-
tially permitted on or after January 1, 2020, shall achieve 
an emission limit that is a 65 percent reduction in emis-
sions of the carbon dioxide
produced by the
unit, as 
measured on an annual basis, or meet such more stringent 
standard as the Administrator may establish pursuant to 
subsection (c). In determining compliance with this sub-
section, the Administrator shall assume an energy penalty 
of the carbon dioxide capture system of no greater than 
15 percent. 
‘‘(2) A covered EGU that is initially permitted after 
January 1, 2009, and before January 1, 2020, shall, by 
the applicable compliance date established under this 
paragraph, shall achieve an emission limit that is a 50 
percent reduction in emissions of the carbon dioxide
pro-
duced by the
unit, as measured on an annual basis. In 
determining compliance with this subsection, the Adminis-
trator shall assume an energy penalty of the carbon diox-
ide capture system of no greater than 15 percent. Compli-
ance with the requirement set forth in this paragraph shall 
be required by the earliest of the following: 
‘‘(A) Four years after the date the Adminis-
trator issues a determination that there are in com-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
mercial operation in the United States electric gen-
erating units equipped with carbon capture and se-
questration technology that, in the aggregate— 
‘‘(i) have a total of at least 4 gigawatts of 
nameplate generating capacity of which— 
‘‘(I) at least 3 gigawatts must be elec-
tric generating units; and 
‘‘(II) up to 1 gigawatt may be indus-
trial applications, for which capture and 
sequestration of 3 million tons of carbon 
dioxide 
per 
year 
on 
an 
aggregate 
annualized basis shall be considered equiv-
alent to 1 gigawatt; 
‘‘(ii) include at least 2 electric generating 
units, each with a nameplate generating capac-
ity of 250 megawatts or greater, that inject car-
bon dioxide into geologic formations other than 
oil and gas fields; and 
‘‘(iii) are capturing and sequestering in the 
aggregate at least 12 million tons of carbon di-
oxide per year, calculated on an aggregate 
annualized basis. 
‘‘(B) January 1, 2025. 
‘‘(3) If the deadline for compliance with paragraph 
(2) is January 1, 2025, the Administrator may extend the 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
deadline for compliance by a covered EGU by up to 18 
months if the Administrator makes a determination, based 
on a showing by the owner or operator of the unit, that 
it will be technically infeasible for the unit to meet the 
standard by the deadline. The owner or operator must 
submit a request for such an extension by no later than 
January 1, 2022, and the Administrator shall provide for 
public notice and comment on the extension request. 
‘‘(c) REVIEW AND REVISION OF STANDARDS.—Not 
later than 2025 and at 5-year intervals thereafter, the Ad-
ministrator shall review the standards for new covered 
EGUs under this section and shall, by rule, reduce the 
maximum carbon dioxide emission rate for new covered 
EGUs to a rate which reflects the degree of emission limi-
tation achievable through the application of the best sys-
tem of emission reduction which (taking into account the 
cost of achieving such reduction and any nonair quality 
health and environmental impact and energy require-
ments) the Administrator determines has been adequately 
demonstrated.’’. 
Subtitle C—Clean Transportation 
SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE. 
(a) AMENDMENT OF PURPA.—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 the following: 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
‘‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE IN-
FRASTRUCTURE.— 
‘‘(A) UTILITY
PLAN
FOR
INFRASTRUC-
TURE.—Each electric utility shall develop a 
plan to support the use of plug-in electric drive 
vehicles, including heavy-duty hybrid electric ve-
hicles. The plan may provide for deployment of 
electrical charging stations in public or private 
locations, including street parking, parking ga-
rages, parking lots, homes, gas stations, and 
highway rest stops. Any such plan may also in-
clude— 
‘‘(i) battery exchange, fast charging 
infrastructure and other services; 
‘‘(ii) triggers for infrastructure de-
ployment based upon market penetration 
of plug-in electric drive vehicles; and 
‘‘(iii) such other elements as the State 
determines necessary to support plug-in 
electric drive vehicles. 
Each plan under this paragraph shall provide 
for the deployment of the charging infrastruc-
ture or other infrastructure necessary to ade-
quately support the use of plug-in electric drive 
vehicles. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
‘‘(B) 
SUPPORT
REQUIREMENTS.—Each 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
regulated utility) shall— 
‘‘(i) require that charging infrastruc-
ture deployed is interoperable with prod-
ucts of all auto manufacturers to the ex-
tent possible; and 
‘‘(ii) consider adopting minimum re-
quirements for deployment of electrical 
charging infrastructure and other appro-
priate requirements necessary to support 
the use of plug-in electric drive vehicles. 
‘‘(C) COST RECOVERY.—Each State regu-
latory authority (in the case of each electric 
utility for which it has ratemaking authority) 
and each utility (in the case of a nonregulated 
utility) shall consider whether, and to what ex-
tent, to allow cost recovery for plans and imple-
mentation of plans. 
‘‘(D) SMART
GRID
INTEGRATION.—The 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
regulated utility) shall, in accordance with regu-
lations issued by the Federal Energy Regu-
latory Commission pursuant to section 1305(d) 
of the Energy Independence and Security Act 
of 2007— 
‘‘(i) establish any appropriate proto-
cols and standards for integrating plug-in 
electric drive vehicles into an electrical dis-
tribution system, including Smart Grid 
systems and devices as described in title 
XIII of the Energy Independence and Se-
curity Act of 2007; 
‘‘(ii) include, to the extent feasible, 
the ability for each plug-in electric drive 
vehicle to be identified individually and to 
be associated with its owner’s electric util-
ity account, regardless of the location that 
the vehicle is plugged in, for purposes of 
appropriate billing for any electricity re-
quired to charge the vehicle’s batteries as 
well as any crediting for electricity pro-
vided to the electric utility from the vehi-
cle’s batteries; and 
‘‘(iii) review the determination made 
in response to section 1252 of the Energy 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
ferred to in section 111 with respect to the standard 
established by paragraph (20) of section 111(d).’’. 
(2) FAILURE TO COMPLY.—Section 112(c) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended by adding the fol-
lowing at the end: ‘‘In the case of the standards es-
tablished by paragraph (20) of section 111(d), the 
reference contained in this subsection to the date of 
enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of such paragraph.’’. 
(3) PRIOR STATE ACTIONS.—Section 112(d) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(d)) is amended by striking ‘‘(19)’’ 
and inserting ‘‘(20)’’ before ‘‘of section 111(d)’’. 
SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PRO-
GRAM. 
(a) DEPLOYMENT PROGRAM.—The Secretary of En-
ergy shall establish a program to deploy and integrate 
plug-in electric drive vehicles into the electricity grid in 
multiple regions. In carrying out the program, the Sec-
retary may provide financial assistance described under 
subsection (d), consistent with the goals under subsection 
(b). The Secretary shall select regions based upon applica-
tions for assistance received pursuant to subsection (c). 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
(b) GOALS.—The goals of the program established 
pursuant to subsection (a) shall be— 
(1) to demonstrate the viability of a vehicle- 
based transportation system that is not overly de-
pendent on petroleum as a fuel and contributes to 
lower carbon emissions than a system based on con-
ventional vehicles; 
(2) to facilitate the integration of advanced ve-
hicle technologies into electricity distribution areas 
to improve system performance and reliability; 
(3) to demonstrate the potential benefits of co-
ordinated investments in vehicle electrification on 
personal mobility and a regional grid; 
(4) to demonstrate protocols and standards that 
facilitate vehicle integration into the grid; and 
(5) to investigate differences in each region and 
regulatory environment regarding best practices in 
implementing vehicle electrification. 
(c) APPLICATIONS.—Any State, Indian tribe, or local 
government (or group of State, Indian tribe, or local gov-
ernments) may apply to the Secretary of Energy for finan-
cial assistance in furthering the regional deployment and 
integration into the electricity grid of plug-in electric drive 
vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
100 
providers, car sharing companies or organizations, or 
other persons or entities. 
(d) USE OF FUNDS.—Pursuant to applications re-
ceived under subsection (c), the Secretary may make fi-
nancial assistance available to any applicant or joint spon-
sor of the application to be used for any of the following: 
(1) Assisting persons located in the regional de-
ployment area, including fleet owners, in the pur-
chase of new plug-in electric drive vehicles by offset-
ting in whole or in part the incremental cost of such 
vehicles above the cost of comparable conventionally 
fueled vehicles. 
(2) Supporting the use of plug-in electric drive 
vehicles by funding projects for the deployment of 
any of the following: 
(A) Electrical charging infrastructure for 
plug-in electric drive vehicles, including battery 
exchange, fast charging infrastructure, and 
other services, in public or private locations, in-
cluding street parking, parking garages, park-
ing lots, homes, gas stations, and highway rest 
stops. 
(B) Smart Grid equipment and infrastruc-
ture, as described in title XIII of the Energy 
Independence and Security Act of 2007, to fa-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
101 
cilitate the charging and integration of plug-in 
electric drive vehicles. 
(3) Such other projects as the Secretary deter-
mines appropriate to support the large-scale deploy-
ment of plug-in electric drive vehicles in regional de-
ployment areas. 
(e) PROGRAM REQUIREMENTS.—The Secretary, in 
consultation with the Administrator and the Secretary of 
Transportation, shall determine design elements and re-
quirements of the program established pursuant to sub-
section (a), including— 
(1) the type of financial mechanism with which 
to provide financial assistance; 
(2) criteria for evaluating applications sub-
mitted under subsection (c), including the antici-
pated ability to promote deployment and market 
penetration of vehicles that are less dependent on 
petroleum as fuel source; and 
(3) reporting requirements for entities that re-
ceive financial assistance under this section, includ-
ing a comprehensive set of performance data charac-
terizing the results of the deployment program. 
(f) INFORMATION CLEARINGHOUSE.—The Secretary 
shall, as part of the program established pursuant to sub-
section (a), collect and make available to the public infor-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
102 
mation regarding the cost, performance, and other tech-
nical data regarding the deployment and integration of 
plug-in electric drive vehicles. 
(g) AUTHORIZATION.—There are authorized to be ap-
propriated to carry out this section such sums as may be 
necessary. 
SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFAC-
TURING. 
(a) VEHICLE MANUFACTURING ASSISTANCE PRO-
GRAM.—The Secretary of Energy shall establish a pro-
gram to provide financial assistance to automobile manu-
facturers to facilitate the manufacture of plug-in electric 
drive vehicles, as defined in section 131(a)(5) of the En-
ergy Independence and Security Act of 2007, that are de-
veloped and produced in the United States. 
(b) FINANCIAL ASSISTANCE.—The Secretary of En-
ergy may provide financial assistance to an automobile 
manufacturer under the program established pursuant to 
subsection (a) for— 
(1) the reconstruction or retooling of facilities 
for the manufacture of plug-in electric drive vehicles 
that are developed and produced in the United 
States; and 
(2) if appropriate, the purchase of domestically 
produced vehicle batteries to be used in the manu-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
103 
facture of vehicles manufactured pursuant to para-
graph (1). 
(c) REQUIREMENTS.—The Secretary may provide fi-
nancial assistance under subsection (b) to an automobile 
manufacturer if— 
(1) in the case of a reconstruction or retooling 
described under subsection (b)(1), without financial 
assistance the automobile manufacturer is not able 
to reasonably finance the reconstruction or retooling 
of a facility; or 
(2) in the case of battery purchases described 
under subsection (b)(2), without financial assistance, 
the automobile manufacturer is not able to reason-
ably finance the purchase of such batteries. 
(d) COORDINATION
WITH
REGIONAL
DEPLOY-
MENT.—The Secretary may provide financial assistance 
under subsection (b) in conjunction with the award of fi-
nancial assistance under the large scale vehicle electrifica-
tion program established pursuant to section 122 of this 
Act. 
(e) PROGRAM REQUIREMENTS.—The Secretary shall 
determine design elements and requirements of the pro-
gram established pursuant to subsection (a), including— 
(1) the type of financial mechanism with which 
to provide financial assistance; 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
104 
(2) criteria, in addition to the criteria described 
under subsection (f), for evaluating applications for 
financial assistance; and 
(3) reporting requirements for automobile man-
ufacturers that receive financial assistance under 
this section. 
(f) CRITERIA.—In selecting recipients of financial as-
sistance from among applicant automobile manufacturers, 
the Secretary shall give preference to proposals that— 
(1) are most likely to be successful; and 
(2) are located in local markets that have the 
greatest need for the facility. 
(g) REPORTS.—The Secretary shall annually submit 
to Congress a report on the program established pursuant 
to this section. 
(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 124. INVESTMENT IN CLEAN VEHICLES. 
(a) DEFINITIONS.—In this section: 
(1) ADVANCED
TECHNOLOGY
VEHICLES
AND 
QUALIFYING
COMPONENTS.—The terms ‘‘advanced 
technology vehicles’’ and ‘‘qualifying components’’ 
shall have the definition of such terms in section 136 
of the Energy Independence and Security Act of 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
105 
2007, except that for purposes of this section, the 
average base year as described section 136(a)(1)(C) 
shall be the following: 
(A) in each of the years 2012 through 
2016, the average base year shall be model year 
2009; and 
(B) in 2017, the Administrator shall, not-
withstanding section 136(a)(1)(C), determine 
an appropriate baseline based on technological 
and economic feasibility. 
(2) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 
term ‘‘plug-in electric drive vehicle’’ shall have the 
definition of such term in section 131 of the Energy 
Independence and Security Act of 2007. 
(b) DISTRIBUTION OF ALLOWANCES.—The Adminis-
trator shall, in accordance with this section, distribute al-
lowances allocated pursuant to section 782(i) of the Clean 
Air Act not later than October 31 of 2012 and each cal-
endar year thereafter through 2025. 
(c) PLUG-IN ELECTRIC DRIVE VEHICLE MANUFAC-
TURING AND DEPLOYMENT.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide al-
lowances allocated pursuant to section ø782(i)¿ to 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
106 
applicants, joint sponsors and automobile manufac-
turers pursuant to sections 122 and 123 of this Act. 
(2) ANNUAL AMOUNT.—In each of the years 
2012 through 2017, one-quarter of the portion of 
the allowances allocated pursuant to section 782(i) 
of the Clean Air Act shall be available to carry out 
paragraph (1) such that— 
(A) one-eighth of the portion shall be avail-
able to carry out section 122; and 
(B) one-eighth of the portion shall be 
available to carry out section 123. 
(3) PREFERENCE.—In directing the provision 
of allowances under this subsection, the Secretary 
shall give preference to applications under section 
122(c) that are jointly sponsored by one or more 
automobile manufacturers. 
(4) MULTI-YEAR COMMITMENTS.—The Admin-
istrator shall commit to providing allowances to an 
applicant, joint sponsor or automobile manufacturer 
for up to five consecutive years if— 
(A) an application under section 122 or 
123 of this Act requests a multi-year commit-
ment; 
VerDate Nov 24 2008 
02:36 May 16, 2009
Jkt 079200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
107 
(B) such application meets the criteria for 
support established by the Secretary of Energy 
under sections 122 or 123 of this Act; 
(C) the Administrator confirms to the Sec-
retary that allowances will be available for a 
multi-year commitment; 
(D) the Secretary of Energy determines 
that a multi-year commitment for such applica-
tion will advance the goals of section 122 or 
123; and 
(E) the Secretary of Energy directs the 
Administrator to make a multi-year commit-
ment. 
(5) INSUFFICIENT APPLICATIONS.—If, in any 
year, allowances available under paragraph (2) can-
not be provided because of insufficient numbers of 
submitted applications that meet the criteria for 
support established by the Secretary of Energy 
under sections 122 or 123 of this Act, the remaining 
allowances shall be distributed according to sub-
section (d). 
(d) ADVANCED TECHNOLOGY VEHICLES.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide any 
allowances allocated pursuant to section 782(i) of 
VerDate Nov 24 2008 
02:36 May 16, 2009
Jkt 079200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
108 
the Clean Air Act that are not provided under sub-
section (c) to automobile manufacturers and compo-
nent suppliers to pay not more than 30 percent of 
the cost of— 
(A) reequipping, expanding, or establishing 
a manufacturing facility in the United States to 
produce— 
(i) qualifying advanced technology ve-
hicles; or 
(ii) qualifying components; and 
(B) engineering integration performed in 
the United States of qualifying vehicles and 
qualifying components. 
(2) PREFERENCE.—In directing the provision 
of allowances under this subsection during the years 
2012 through 2017, the Secretary shall give pref-
erence to applications for projects that save the 
maximum number of gallons per vehicle. 
Subtitle D—State Energy and Envi-
ronment Development Accounts 
SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS. 
(a) DEFINITIONS.—In this section: 
(1) SEED ACCOUNT.—The term ‘‘SEED Ac-
count’’ means a State Energy and Environment De-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
109 
velopment Account established pursuant to this sec-
tion. 
(2) STATE ENERGY OFFICE.—The term ‘‘State 
Energy Office’’ means a State entity eligible for 
grants under part D of title III of the Energy Policy 
and Conservation Act (42 U.S.C. 6321 et seq.). 
(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a program under which a State, 
through its State Energy Office or other State agency des-
ignated by the State, may create a State Energy and Envi-
ronment Development Account. 
(c) PURPOSE.—The purpose of each SEED Account 
is to serve as a common State-level repository for man-
aging and accounting for emission allowances provided to 
States designated for renewable energy and energy effi-
ciency purposes. 
(d) REGULATIONS.—Not later than one year after the 
date of enactment of this Act, the Administrator shall pro-
mulgate regulations to carry out this section, including 
regulations— 
(1) to ensure that each State operates its 
SEED Account and any subaccounts thereof effi-
ciently and in accordance with this Act and applica-
ble State and Federal laws; 
(2) to prevent waste, fraud, and abuse; 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
110 
(3) to indicate the emission allowances that 
may be deposited in a State’s SEED Account pend-
ing distribution or use; 
(4) to indicate the programs and objectives au-
thorized by Federal law for which emission allow-
ances in a SEED Account may be distributed or 
used; 
(5) to identify the forms of financial assistance 
and incentives that States may provide through dis-
tribution or use of SEED Accounts; and 
(6) to prescribe the form and content of reports 
that the States are required to submit under this 
section on the use of SEED Accounts. 
(e) OPERATION.— 
(1) DEPOSITS.— 
(A) IN GENERAL.—Except as required pur-
suant to subparagraph (B), a State shall de-
posit into its SEED Account all allowances re-
ceived from the Administrator for renewable en-
ergy and energy efficiency purposes, pursuant 
to this Act. 
(B) A State may create a financial account 
associated with its SEED Account to deposit, 
retain, and manage any proceeds of any sale of 
any allowance provided pursuant to this Act 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
111 
pending expenditure or disbursement of those 
proceeds for purposes permitted under this sec-
tion. The funds in such an account shall not be 
commingled with other funds not derived from 
the sale of allowances provided to the State; 
however, loans made by the State from such 
funds pursuant to paragraph (2)(C)(i) may be 
repaid into such a financial account, including 
any interest charged. 
(2) WITHDRAWALS.— 
(A) IN GENERAL.—All allowances distrib-
uted or withdrawn from SEED Accounts, in-
cluding the proceeds of any sale or such allow-
ances, shall support renewable energy and en-
ergy efficiency programs authorized or approved 
by the Federal Government. 
(B) 
DEDICATED
ALLOWANCES.—Allow-
ances deposited in a SEED Account that are 
required by law to be used for specific purposes 
for a specified period shall be used according to 
those requirements during that period. 
(C) UNDEDICATED ALLOWANCES.—To the 
extent that allowances deposited in a SEED 
Account are not required by law to be used for 
specific purposes for a specified period as de-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
112 
scribed in subparagraph (B), such allowances or 
the proceeds of their sale may be used for any 
of the following purposes: 
(i) LOANS.—Loans of allowances, or 
the proceeds from the sale of allowances, 
may be provided, interest on commercial 
loans may be subsidized at an interest rate 
as low as zero, and other credit support 
may be provided to support programs au-
thorized to use SEED Account allowance 
value or any other renewable energy or en-
ergy efficiency purpose authorized or ap-
proved by the Federal Government. 
(ii) GRANTS.—Grants of allowances or 
the proceeds of their sale may be provided 
to support programs authorized to use 
SEED Account allowance value or any 
other renewable energy or energy efficiency 
purpose authorized or approved by the 
Federal Government. 
(iii) OTHER FORMS OF SUPPORT.—Al-
lowances or the proceeds of the sale of al-
lowances may be provided for other forms 
of support for programs authorized to use 
SEED Account allowance value or any 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
113 
other renewable energy or energy efficiency 
purpose authorized or approved by the 
Federal Government. 
(iv) ADMINISTRATIVE COSTS.—Except 
to the extent provided in Federal law au-
thorizing or allocating allowances deposited 
in a SEED Account, not more than 5 per-
cent of the allowance value in a SEED Ac-
count in any year may be used to cover ad-
ministrative expenses of the SEED Ac-
count. 
(D) SUBACCOUNTS.—A State may create 
and maintain subaccounts for local governments 
that request such subaccounts to hold allow-
ances distributed to local governments for re-
newable energy or energy efficiency programs 
authorized or approved by the Federal Govern-
ment. 
(E) INTENDED USE PLANS.— 
(i) IN GENERAL.—After providing for 
public review and comment, each State ad-
ministering a SEED Account shall annu-
ally prepare a plan that identifies the in-
tended uses of the allowances or proceeds 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
114 
from the sale of allowances in its SEED 
Account. 
(ii) CONTENTS.—An intended use 
plan shall include— 
(I) a list of the projects or pro-
grams for which withdrawals from the 
SEED Account are intended in the 
next fiscal year that begins after the 
date of the plan, including a descrip-
tion of each project; 
(II) the relationship of each of 
the projects or programs to an identi-
fied Federal purpose authorized by 
this Act, or any other Federal statute; 
(III) the expected terms of use of 
allowance value to provide assistance; 
(IV) the criteria and methods es-
tablished for the distribution of allow-
ances or allowance value; 
(V) a description of the equiva-
lent financial value and status of the 
SEED Account; and 
(VI) a statement of the mid-term 
and long-term goals of the State for 
use of its SEED Account. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
115 
(3) ACCOUNTABILITY AND TRANSPARENCY.— 
(A) CONTROLS
AND
PROCEDURES.—Any 
State that has established a SEED Account 
shall establish fiscal controls and recordkeeping 
and accounting procedures for the SEED Ac-
count sufficient to ensure proper accounting 
during appropriate accounting periods for de-
posits into the SEED Account, withdrawals 
from the SEED Account, and SEED Account 
balances, including any subaccounts or related 
financial accounts. Such controls and proce-
dures shall conform to generally accepted gov-
ernment accounting principles. Any State that 
has established a SEED Account shall retain 
records for a period of at least 5 years. 
(B) AUDITS.—Any State that has estab-
lished a SEED Account shall have an annual 
audit conducted of the SEED Account by an 
independent public accountant in accordance 
with generally accepted auditing standards, and 
shall transmit the results of that audit to the 
Administrator. 
(C) STATE REPORT.—Each State admin-
istering a SEED Account shall make publicly 
available and submit to the Secretary a report 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
116 
every 2 years on its activities related to its 
SEED Account. 
(D) PUBLIC INFORMATION.—Any— 
(i) controls and procedures established 
under subparagraph (A); and 
(ii) information obtained through au-
dits conducted under subparagraph (B), 
except to the extent that it would be pro-
tected from disclosure, if it were informa-
tion held by the Federal Government, 
under section 552(b) of title 5, United 
States Code, 
shall be made publicly available. 
(E) OTHER PROTECTIONS.—The Adminis-
trator shall require such additional procedures 
and protections as are necessary to ensure that 
any State that has established a SEED Ac-
count will operate the SEED Account in an ac-
countable and transparent manner. 
(f) REQUIREMENTS FOR ELIGIBILITY.—A State’s eli-
gibility to receive allowances in its SEED Account shall 
depend on that State’s compliance with the requirements 
of this Act (and the amendments made by this Act). 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
117 
such sums as may be necessary for SEED Account oper-
ations. 
SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND 
ENERGY EFFICIENCY PROGRAMS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) COST-EFFECTIVE.—The term ‘‘cost-effec-
tive’’, with respect to an energy efficiency program, 
means that the program meets the Total Resource 
Cost Test, which requires that the net present value 
of economic benefits over the life of the program or 
measure, including avoided supply and delivery costs 
and deferred or avoided investments, is greater than 
the net present value of the economic costs over the 
life of the program, including program costs and in-
cremental costs borne by the energy consumer. 
(2) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ shall have the 
meaning given that term in section 610 of the Public 
Utility Regulatory Policies Act of 1978 (as added by 
section 101 of this Act). 
(3) STATE.—The term ‘‘State’’ shall have the 
meaning given that term in section 302(d) of the 
Clean Air Act (42 U.S.C. 7602(d)). 
(b) DISTRIBUTION AMONG STATES.—The Adminis-
trator shall, in accordance with this section, distribute 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00117
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
118 
emission allowances allocated pursuant to section 
782(g)(1) not later than September 30, 2012, and each 
calendar year thereafter through 2050. The Administrator 
shall distribute the emission allowances to States for re-
newable energy and energy efficiency programs to be de-
posited in and administered through the State Energy and 
Environment Development (SEED) Accounts established 
pursuant to section 131 of the American Clean Energy 
and Security Act of 2009. The Administrator shall dis-
tribute allowances among the States under this section 
each year in accordance with the following formula: 
(1) One third of the allowances shall be divided 
equally among the States. 
(2) One third of the allowances shall be distrib-
uted ratably among the States based on the popu-
lation of each State, as contained in the most recent 
reliable census data available from the Bureau of the 
Census, Department of Commerce, for all States at 
the time the Administrator calculates the formula 
for distribution. 
(3) One third of the allowances for shall be dis-
tributed ratably among the States on the basis of 
the energy consumption of each State as contained 
in the most recent State Energy Data Report avail-
able from the Energy Information Administration 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00118
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
119 
(or such alternative reliable source as the Adminis-
trator may designate). 
(c) USES.—The allowances distributed to each State 
pursuant to this section shall be used exclusively for the 
purposes listed in this subsection, as set forth below: 
(1) Not less than 12.5 percent shall be distrib-
uted by the State to units of local government within 
such State to be used exclusively to support the en-
ergy efficiency and renewable energy purposes listed 
in paragraphs (2) and (3). 
(2) Not less than 20 percent shall be used ex-
clusively for the following energy efficiency pur-
poses— 
(A) implementation and enforcement of 
building codes adopted in compliance with sec-
tion 201 of the American Clean Energy and Se-
curity Act of 2009; 
(B) implementation of the Retrofit for En-
ergy and Environmental Performance (REEP) 
program established pursuant to section 202 of 
the American Clean Energy and Security Act of 
2009; 
(C) implementation of the energy efficient 
manufactured homes program established pur-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00119
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
120 
suant to section 203 of the American Clean En-
ergy and Security Act of 2009; 
(D) implementation of the building energy 
performance labeling program established pur-
suant to section 204 of the American Clean En-
ergy and Security Act of 2009; 
(E) enabling the development of a Smart 
Grid (as described in section 1301 of the En-
ergy Independence and Security Act of 2007 
(42 U.S.C. 17381)), including integration of re-
newable energy resources and distributed gen-
eration, demand response, demand side man-
agement, and systems analysis; 
(F) transportation planning pursuant to 
section 841; and 
(G) other cost-effective energy efficiency 
programs for end-use consumers of electricity, 
natural gas, home heating oil, or propane, in-
cluding, where appropriate, programs or mecha-
nisms administered by local governments and 
entities other than the State. 
(3) Not less than 20 percent shall be used ex-
clusively for capital grants, tax credits, production 
incentives, loans, loan guarantees, forgivable loans, 
and interest rate buy-downs for— 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00120
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
121 
(A) re-equipping, expanding, or estab-
lishing a manufacturing facility that receives 
certification from the Secretary of Energy pur-
suant to section 1302 of the American Recovery 
and Reinvestment Act of 2009 for the produc-
tion of— 
(i) property designed to be used to 
produce energy from renewable energy 
sources; and 
(ii) electricity storage systems; and 
(B) deployment of technologies to generate 
electricity from renewable energy sources. 
(4) The remaining 47.5 percent shall be used 
exclusively for any of the purposes described in sub-
paragraphs (A) through (F) of paragraph (2) and in 
paragraph (3). 
(d) REPORTING.—Each State receiving emission al-
lowances under this section shall include in its biennial 
reports required under section 131 of the American Clean 
Energy and Security Act of 2009, in accordance with such 
requirements as the Administrator may prescribe— 
(1) a list of entities receiving allowances or al-
lowance value under this section; 
(2) the amount and nature of allowances or al-
lowance value received by each recipient; 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
122 
(3) the specific purposes for which such allow-
ances or allowance value was conveyed; 
(4) the amount of energy savings, emission re-
ductions, renewable energy deployment, or new or 
retooled manufacturing capacity resulting from such 
allowances or allowance value; and 
(5) an assessment of the cost-effectiveness of 
any energy efficiency program supported under sub-
section (c)(2)(G). 
(e) ENFORCEMENT.—If the Administrator deter-
mines that a State is not in compliance with this section, 
the Administrator may withhold a portion of the allow-
ances, the value of which is equal to up to twice the value 
of the allowances that the State failed to use in accordance 
with the requirements of this section, that such State 
would otherwise be eligible to receive under this section 
in later years. Allowances withheld pursuant to this sub-
section shall be distributed among the remaining States 
in accordance with the requirements of subsection (b). 
Subtitle E—Smart Grid 
Advancement 
SEC. 141. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
123 
(2) The term ‘‘applicable baseline’’ means the 
average of the highest three annual peak demands a 
load-serving entity has experienced during the 5 
years immediately prior to the date of enactment of 
this Act. 
(3) The term‘‘Commission’’ means Federal En-
ergy Regulatory Commission. 
(4) The term ‘‘load-serving entity’’ means an 
entity that provides electricity directly to retail con-
sumers with the responsibility to assure power qual-
ity and reliability, including such entities that are 
investor-owned, publicly owned, owned by rural elec-
tric cooperatives, or other entities. 
(5) The term ‘‘peak demand’’ means the high-
est point of electricity demand, net of any distrib-
uted electricity generation or storage from sources 
on the load-serving entity’s customers’ premises, 
during any hour on the system of a load serving en-
tity during a calendar year, expressed in Megawatts 
(MW), or more than one such high point as a func-
tion of seasonal demand changes. 
(6) The term ‘‘peak demand reduction’’ means 
the reduction in annual peak demand as compared 
to a previous baseline year or period, expressed in 
Megawatts (MW), whether accomplished by dimin-
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
124 
ishing the end-use requirements for electricity or by 
use of locally stored or generated electricity to meet 
those requirements from distributed resources on the 
load-serving entity’s customers’ premises and with-
out use of high-voltage transmission. 
(7) The term ‘‘peak demand reduction plan’’ 
means a plan developed by or for a load-serving enti-
ty that it will implement to meet its peak demand 
reduction goals. 
(8) The term ‘‘peak period’’ means the time pe-
riod on the system of a load-serving entity relative 
to peak demand that may warrant special measures 
or electricity resources to maintain system reliability 
while meeting peak demand. 
(9) The term ‘‘Secretary’’ means the Secretary 
of Energy. 
(10) The term ‘‘Smart Grid’’ has the meaning 
provided by section 1301 of the Energy Independ-
ence and Security Act of 2007 (15 U.S.C. 17381). 
SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVE-
NESS IN PRODUCTS. 
(a) ASSESSMENT.—Within one year after the date of 
enactment of this Act, the Secretary and the Adminis-
trator shall each assess the potential for cost-effective in-
tegration of Smart Grid technologies and capabilities in 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
125 
all products that are reviewed by the Department of En-
ergy and the Environmental Protection Agency, respec-
tively, for potential designation as Energy Star products. 
(b) ANALYSIS.—(1) Within 2 years after the date of 
enactment of this Act, the Secretary and the Adminis-
trator shall each prepare an analysis of the potential en-
ergy savings, greenhouse gas emission reductions, and 
electricity cost savings that could accrue for each of the 
products identified by the assessment in subsection (a) in 
the following optimal circumstances: 
(A) The products possessed Smart Grid capa-
bility and interoperability that is tested and proven 
reliable. 
(B) The products were utilized in an electricity 
utility service area which had Smart Grid capability 
and offered customers rate or program incentives to 
use the products. 
(C) The utility’s rates reflected national average 
costs, including average peak and valley seasonal 
and daily electricity costs. 
(D) Consumers using such products took full 
advantage of such capability. 
(E) The utility avoided incremental investments 
and rate increases related to such savings. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
126 
(2) The analysis under paragraph (1) shall be consid-
ered the ‘‘best case’’ Smart Grid analysis. On the basis 
of such an analysis for each product, the Secretary and 
the Administrator shall determine whether the installation 
of Smart Grid capability for such a product would be cost 
effective. For purposes of this paragraph, the term ‘‘cost 
effective’’ means that the cumulative savings from using 
the product under the best case Smart Grid circumstances 
for a period of one-half of the product’s expected useful 
life will be greater than the incremental cost of the Smart 
Grid features included in the product. 
(3) To the extent that including Smart Grid capa-
bility in any products analyzed under paragraph (2) is 
found to be cost effective in the best case, the Secretary 
and the Administrator shall, not later than 3 years after 
the date of enactment of this Act take each of the fol-
lowing actions: 
(A) Inform the manufacturer of such product of 
such finding of cost effectiveness. 
(B) Assess the potential contributions the devel-
opment and use of products with Smart Grid tech-
nologies bring to reducing peak demand and pro-
moting grid stability. 
(C) Assess the potential national energy savings 
and electricity cost savings that could be realized if 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS
432 
‘‘(B) it is determined to expire or to have 
expired by a specific date by the Administrator 
in accordance with regulations promulgated 
under paragraph (1). 
‘‘(3) 
INTERNATIONAL
EMISSION
ALLOW-
ANCES.—The ability to use an international emission 
allowance to comply with section 722 shall not ex-
pire unless— 
‘‘(A) the allowance is retired by the Ad-
ministrator as required by this title; or 
‘‘(B) the ability to use such allowance to 
meet such compliance obligation requirements is 
determined to expire or to have expired by a 
specific date by the Administrator in accord-
ance with regulations promulgated under para-
graph (1). 
‘‘(c) BORROWING FUTURE VINTAGE YEAR ALLOW-
ANCES.— 
‘‘(1) BORROWING WITHOUT INTEREST.—In ad-
dition to the uses described in subsection (a), an 
emission allowance may be used to comply with sec-
tion 722(a) or section 723 for emissions, production, 
importation, manufacture, or deliveries in the cal-
endar year immediately preceding the vintage year 
for the allowance. 
VerDate Nov 24 2008 
00:55 May 16, 2009
Jkt 079200
PO 00000
Frm 00432
Fmt 6652
Sfmt 6201
E:\BILLS\H2454.IH
H2454
smartinez on PROD1PC70 with BILLS