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(1) a classified form; and
(2) an unclassified form.
SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSA-
TION FOR NUCLEAR DAMAGE CONTINGENT
COST ALLOCATION.
(a) FINDINGS AND PURPOSE.—
(1) FINDINGS.—Congress finds that—
(A) section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210) (commonly known as the
‘‘Price-Anderson Act’’)—
(i) provides a predictable legal frame-
work necessary for nuclear projects; and
(ii) ensures prompt and equitable com-
pensation in the event of a nuclear incident
in the United States;
(B) the Price-Anderson Act, in effect, pro-
vides operators of nuclear powerplants with in-
surance for damage arising out of a nuclear in-
cident and funds the insurance primarily
through the assessment of a retrospective pre-
mium from each operator after the occurrence of
a nuclear incident;
(C) the Convention on Supplementary Com-
pensation for Nuclear Damage, done at Vienna
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on September 12, 1997, will establish a global
system—
(i) to provide a predictable legal
framework necessary for nuclear energy
projects; and
(ii) to ensure prompt and equitable
compensation in the event of a nuclear inci-
dent;
(D) the Convention benefits United States
nuclear suppliers that face potentially unlimited
liability for nuclear incidents that are not cov-
ered by the Price-Anderson Act by replacing a
potentially open-ended liability with a predict-
able liability regime that, in effect, provides nu-
clear suppliers with insurance for damage aris-
ing out of such an incident;
(E) the Convention also benefits United
States nuclear facility operators that may be
publicly liable for a Price-Anderson incident by
providing an additional early source of funds to
compensate damage arising out of the Price-An-
derson incident;
(F) the combined operation of the Conven-
tion, the Price-Anderson Act, and this section
will augment the quantity of assured funds
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available for victims in a wider variety of nu-
clear incidents while reducing the potential li-
ability of United States suppliers without in-
creasing potential costs to United States opera-
tors;
(G) the cost of those benefits is the obliga-
tion of the United States to contribute to the
supplementary compensation fund established by
the Convention;
(H) any such contribution should be funded
in a manner that does not—
(i) upset settled expectations based on
the liability regime established under the
Price-Anderson Act; or
(ii) shift to Federal taxpayers liability
risks for nuclear incidents at foreign instal-
lations;
(I) with respect to a Price-Anderson inci-
dent, funds already available under the Price-
Anderson Act should be used; and
(J) with respect to a nuclear incident out-
side the United States not covered by the Price-
Anderson Act, a retrospective premium should be
prorated among nuclear suppliers relieved from
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potential liability for which insurance is not
available.
(2) PURPOSE.—The purpose of this section is to
allocate the contingent costs associated with partici-
pation by the United States in the international nu-
clear liability compensation system established by the
Convention on Supplementary Compensation for Nu-
clear Damage, done at Vienna on September 12,
1997—
(A) with respect to a Price-Anderson inci-
dent, by using funds made available under sec-
tion 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) to cover the contingent costs in a
manner that neither increases the burdens nor
decreases the benefits under section 170 of that
Act; and
(B) with respect to a covered incident out-
side the United States that is not a Price-Ander-
son incident, by allocating the contingent costs
equitably, on the basis of risk, among the class
of nuclear suppliers relieved by the Convention
from the risk of potential liability resulting from
any covered incident outside the United States.
(b) DEFINITIONS.—In this section:
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(1) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Nuclear Regulatory Commission.
(2) CONTINGENT COST.—The term ‘‘contingent
cost’’ means the cost to the United States in the event
of a covered incident the amount of which is equal to
the amount of funds the United States is obligated to
make available under paragraph 1(b) of Article III of
the Convention.
(3) 
CONVENTION.—The 
term 
‘‘Convention’’
means the Convention on Supplementary Compensa-
tion for Nuclear Damage, done at Vienna on Sep-
tember 12, 1997.
(4) COVERED INCIDENT.—The term ‘‘covered in-
cident’’ means a nuclear incident the occurrence of
which results in a request for funds pursuant to Arti-
cle VII of the Convention.
(5) COVERED INSTALLATION.—The term ‘‘covered
installation’’ means a nuclear installation at which
the occurrence of a nuclear incident could result in a
request for funds under Article VII of the Convention.
(6) COVERED PERSON.—
(A) IN GENERAL.—The term ‘‘covered per-
son’’ means—
(i) a United States person; and
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(ii) an individual or entity (including
an agency or instrumentality of a foreign
country) that—
(I) is located in the United States;
or
(II) carries out an activity in the
United States.
(B) EXCLUSIONS.—The term ‘‘covered per-
son’’ does not include—
(i) the United States; or
(ii) any agency or instrumentality of
the United States.
(7) NUCLEAR
SUPPLIER.—The term ‘‘nuclear
supplier’’ means a covered person (or a successor in
interest of a covered person) that—
(A) supplies facilities, equipment, fuel, serv-
ices, or technology pertaining to the design, con-
struction, operation, or decommissioning of a
covered installation; or
(B) transports nuclear materials that could
result in a covered incident.
(8) 
PRICE-ANDERSON
INCIDENT.—The 
term
‘‘Price-Anderson incident’’ means a covered incident
for which section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210) would make funds available to
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compensate for public liability (as defined in section
11 of that Act (42 U.S.C. 2014)).
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(10) UNITED STATES.—
(A) 
IN
GENERAL.—The 
term 
‘‘United
States’’ has the meaning given the term in sec-
tion 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014).
(B) 
INCLUSIONS.—The 
term 
‘‘United
States’’ includes—
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of
the United States;
(iii) the Canal Zone; and
(iv) the waters of the United States ter-
ritorial sea under Presidential Proclama-
tion Number 5928, dated December 27,
1988 (43 U.S.C. 1331 note).
(11) 
UNITED
STATES
PERSON.—The 
term
‘‘United States person’’ means—
(A) any individual who is a resident, na-
tional, or citizen of the United States (other than
an individual residing outside of the United
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States and employed by a person who is not a
United States person); and
(B) any corporation, partnership, associa-
tion, joint stock company, business trust, unin-
corporated organization, or sole proprietorship
that is organized under the laws of the United
States.
(c) USE OF PRICE-ANDERSON FUNDS.—
(1) IN GENERAL.—Funds made available under
section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) shall be used to cover the contingent cost
resulting from any Price-Anderson incident.
(2) EFFECT.—The use of funds pursuant to
paragraph (1) shall not reduce the limitation on pub-
lic liability established under section 170 e. of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)).
(d) EFFECT ON AMOUNT OF PUBLIC LIABILITY.—
(1) IN GENERAL.—Funds made available to the
United States under Article VII of the Convention
with respect to a Price-Anderson incident shall be
used to satisfy public liability resulting from the
Price-Anderson incident.
(2) AMOUNT.—The amount of public liability al-
lowable under section 170 of the Atomic Energy Act
of 1954 (42 U.S.C. 2210) relating to a Price-Ander-
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son incident under paragraph (1) shall be increased
by an amount equal to the difference between—
(A) the amount of funds made available for
the Price-Anderson incident under Article VII of
the Convention; and
(B) the amount of funds used under sub-
section (c) to cover the contingent cost resulting
from the Price-Anderson incident.
(e) RETROSPECTIVE RISK POOLING PROGRAM.—
(1) IN
GENERAL.—Except as provided under
paragraph (2), each nuclear supplier shall participate
in a retrospective risk pooling program in accordance
with this section to cover the contingent cost resulting
from a covered incident outside the United States that
is not a Price-Anderson incident.
(2) DEFERRED PAYMENT.—
(A) IN GENERAL.—The obligation of a nu-
clear supplier to participate in the retrospective
risk pooling program shall be deferred until the
United States is called on to provide funds pur-
suant to Article VII of the Convention with re-
spect to a covered incident that is not a Price-
Anderson incident.
(B) AMOUNT OF DEFERRED PAYMENT.—The
amount of a deferred payment of a nuclear sup-
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plier under subparagraph (A) shall be based on
the risk-informed assessment formula determined
under subparagraph (C).
(C) 
RISK-INFORMED
ASSESSMENT
FOR-
MULA.—
(i) IN
GENERAL.—Not later than 3
years after the date of the enactment of this
Act, and every 5 years thereafter, the Sec-
retary shall, by regulation, determine the
risk-informed assessment formula for the al-
location among nuclear suppliers of the con-
tingent cost resulting from a covered inci-
dent that is not a Price-Anderson incident,
taking into account risk factors such as—
(I) the nature and intended pur-
pose of the goods and services supplied
by each nuclear supplier to each cov-
ered installation outside the United
States;
(II) the quantity of the goods and
services supplied by each nuclear sup-
plier to each covered installation out-
side the United States;
(III) the hazards associated with
the supplied goods and services if the
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goods and services fail to achieve the
intended purposes;
(IV) the hazards associated with
the covered installation outside the
United States to which the goods and
services are supplied;
(V) the legal, regulatory, and fi-
nancial infrastructure associated with
the covered installation outside the
United States to which the goods and
services are supplied; and
(VI) the hazards associated with
particular forms of transportation.
(ii) FACTORS FOR CONSIDERATION.—
In determining the formula, the Secretary
may—
(I) exclude—
(aa) goods and services with
negligible risk;
(bb) classes of goods and
services not intended specifically
for use in a nuclear installation;
(cc) a nuclear supplier with
a de minimis share of the contin-
gent cost; and
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(dd) a nuclear supplier no
longer in existence for which there
is no identifiable successor; and
(II) establish the period on which
the risk assessment is based.
(iii) APPLICATION.—In applying the
formula, the Secretary shall not consider
any covered installation or transportation
for which funds would be available under
section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210).
(iv) REPORT.—Not later than 5 years
after the date of the enactment of this Act,
and every 5 years thereafter, the Secretary
shall submit to the Committee on Environ-
ment and Public Works of the Senate and
the Committee on Energy and Commerce of
the House of Representatives a report on
whether there is a need for continuation or
amendment of this section, taking into ac-
count the effects of the implementation of
the Convention on the United States nuclear
industry and suppliers.
(f) REPORTING.—
(1) COLLECTION OF INFORMATION.—
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(A) IN GENERAL.—The Secretary may col-
lect information necessary for developing and
implementing the formula for calculating the de-
ferred payment of a nuclear supplier under sub-
section (e)(2).
(B) PROVISION
OF
INFORMATION.—Each
nuclear supplier and other appropriate persons
shall make available to the Secretary such infor-
mation, reports, records, documents, and other
data as the Secretary determines, by regulation,
to be necessary or appropriate to develop and
implement 
the 
formula 
under 
subsection
(e)(2)(C).
(2) PRIVATE INSURANCE.—The Secretary shall
make available to nuclear suppliers, and insurers of
nuclear suppliers, information to support the vol-
untary establishment and maintenance of private in-
surance against any risk for which nuclear suppliers
may be required to pay deferred payments under this
section.
(g) EFFECT ON LIABILITY.—Nothing in any other law
(including regulations) limits liability for a covered inci-
dent to an amount equal to less than the amount prescribed
in paragraph 1(a) of Article IV of the Convention, unless
the law—
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(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies,
impairs, displaces, or supersedes the effect of this sub-
section.
(h) PAYMENTS TO AND BY THE UNITED STATES.—
(1) ACTION BY NUCLEAR SUPPLIERS.—
(A) NOTIFICATION.—In the case of a request
for funds under Article VII of the Convention re-
sulting from a covered incident that is not a
Price-Anderson incident, the Secretary shall no-
tify each nuclear supplier of the amount of the
deferred payment required to be made by the nu-
clear supplier.
(B) PAYMENTS.—
(i) IN GENERAL.—Except as provided
under clause (ii), not later than 60 days
after receipt of a notification under sub-
paragraph (A), a nuclear supplier shall pay
to the general fund of the Treasury the de-
ferred payment of the nuclear supplier re-
quired under subparagraph (A).
(ii) ANNUAL
PAYMENTS.—A nuclear
supplier may elect to prorate payment of
the deferred payment required under sub-
paragraph (A) in 5 equal annual payments
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(including interest on the unpaid balance at
the prime rate prevailing at the time the
first payment is due).
(C) VOUCHERS.—A nuclear supplier shall
submit payment certification vouchers to the
Secretary of the Treasury in accordance with
section 3325 of title 31, United States Code.
(2) USE OF FUNDS.—
(A) IN GENERAL.—Amounts paid into the
Treasury under paragraph (1) shall be available
to the Secretary of the Treasury, without further
appropriation and without fiscal year limita-
tion, for the purpose of making the contributions
of public funds required to be made by the
United States under the Convention.
(B) ACTION
BY
SECRETARY
OF
TREAS-
URY.—The Secretary of the Treasury shall pay
the contribution required under the Convention
to the court of competent jurisdiction under Arti-
cle XIII of the Convention with respect to the ap-
plicable covered incident.
(3) FAILURE TO PAY.—If a nuclear supplier fails
to make a payment required under this subsection,
the Secretary may take appropriate action to recover
from the nuclear supplier—
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(A) the amount of the payment due from the
nuclear supplier;
(B) any applicable interest on the payment;
and
(C) a penalty of not more than twice the
amount of the deferred payment due from the
nuclear supplier.
(i) LIMITATION ON JUDICIAL REVIEW; CAUSE OF AC-
TION.—
(1) LIMITATION ON JUDICIAL REVIEW.—
(A) IN GENERAL.—In any civil action aris-
ing under the Convention over which Article
XIII of the Convention grants jurisdiction to the
courts of the United States, any appeal or review
by writ of mandamus or otherwise with respect
to a nuclear incident that is not a Price-Ander-
son incident shall be in accordance with chapter
83 of title 28, United States Code, except that the
appeal or review shall occur in the United States
Court of Appeals for the District of Columbia
Circuit.
(B) SUPREME COURT JURISDICTION.—Noth-
ing in this paragraph affects the jurisdiction of
the Supreme Court of the United States under
chapter 81 of title 28, United States Code.
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(2) CAUSE OF ACTION.—
(A) IN GENERAL.—Subject to subparagraph
(B), in any civil action arising under the Con-
vention over which Article XIII of the Conven-
tion grants jurisdiction to the courts of the
United States, in addition to any other cause of
action that may exist, an individual or entity
shall have a cause of action against the operator
to recover for nuclear damage suffered by the in-
dividual or entity.
(B) 
REQUIREMENT.—Subparagraph 
(A)
shall apply only if the individual or entity seeks
a remedy for nuclear damage (as defined in Ar-
ticle I of the Convention) that was caused by a
nuclear incident (as defined in Article I of the
Convention) that is not a Price-Anderson inci-
dent.
(C) SAVINGS PROVISION.—Nothing in this
paragraph may be construed to limit, modify,
extinguish, or otherwise affect any cause of ac-
tion that would have existed in the absence of en-
actment of this paragraph.
(j) RIGHT OF RECOURSE.—This section does not pro-
vide to an operator of a covered installation any right of
recourse under the Convention.
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(k) PROTECTION OF SENSITIVE UNITED STATES IN-
FORMATION.—Nothing in the Convention or this section re-
quires the disclosure of—
(1) any data that, at any time, was Restricted
Data (as defined in section 11 of the Atomic Energy
Act of 1954 (42 U.S.C. 2014));
(2) information relating to intelligence sources or
methods protected by section 102A(i) of the National
Security Act of 1947 (50 U.S.C. 403–1(i)); or
(3) national security information classified
under Executive Order 12958 (50 U.S.C. 435 note; re-
lating to classified national security information) (or
a successor Executive Order or regulation).
(l) REGULATIONS.—
(1) IN GENERAL.—The Secretary or the Commis-
sion, as appropriate, may prescribe regulations to
carry out section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210) and this section.
(2) REQUIREMENT.—Rules prescribed under this
subsection shall ensure, to the maximum extent prac-
ticable, that—
(A) the implementation of section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210)
and this section is consistent and equitable; and
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(B) the financial and operational burden on
a Commission licensee in complying with section
170 of that Act is not greater as a result of the
enactment of this section.
(3) APPLICABILITY OF PROVISION.—Section 553
of title 5, United States Code, shall apply with re-
spect to the promulgation of regulations under this
subsection.
(4) EFFECT
OF
SUBSECTION.—The authority
provided under this subsection is in addition to, and
does not impair or otherwise affect, any other author-
ity of the Secretary or the Commission to prescribe
regulations.
(m) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RE-
SOURCE PAYMENTS.
(a) PURPOSE.—The purpose of this section is to—
(1) ensure greater United States energy security
by combating corruption in the governments of for-
eign countries that receive revenues from the sale of
their natural resources; and
(2) enhance the development of democracy and
increase political and economic stability in such re-
source rich foreign countries.
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(b) STATEMENT OF POLICY.—It is the policy of the
United States—
(1) to increase energy security by promoting
anti-corruption initiatives in oil and natural gas rich
countries; and
(2) to promote global energy security through
promotion of programs such as the Extractive Indus-
tries Transparency Initiative (EITI) that seek to in-
still transparency and accountability into extractive
industries resource payments.
(c) SENSE OF CONGRESS.—It is the sense of Congress
that the United States should further global energy security
and promote democratic development in resource-rich for-
eign countries by—
(1) encouraging further participation in the
EITI by eligible countries and companies; and
(2) promoting the efficacy of the EITI program
by ensuring a robust and candid review mechanism.
(d) REPORT.—
(1) REPORT
REQUIRED.—Not later than 180
days after the date of the enactment of this Act, and
annually thereafter, the Secretary of State, in con-
sultation with the Secretary of Energy, shall submit
to the appropriate congressional committees a report
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on progress made in promoting transparency in ex-
tractive industries resource payments.
(2) MATTERS TO BE INCLUDED.—The report re-
quired by paragraph (1) shall include a detailed de-
scription of United States participation in the EITI,
bilateral and multilateral diplomatic efforts to further
participation in the EITI, and other United States
initiatives to strengthen energy security, deter energy
kleptocracy, and promote transparency in the extrac-
tive industries.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $3,000,000 for the purposes
of United States contributions to the Multi-Donor Trust
Fund of the EITI.
TITLE X—GREEN JOBS
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Green Jobs Act of
2007’’.
SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY
WORKER TRAINING PROGRAM.
Section 171 of the Workforce Investment Act of 1998
(29 U.S.C. 2916) is amended by adding at the end the fol-
lowing:
‘‘(e) ENERGY EFFICIENCY AND RENEWABLE ENERGY
WORKER TRAINING PROGRAM.—
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‘‘(1) GRANT PROGRAM.—
‘‘(A) IN
GENERAL.—Not later than 6
months after the date of enactment of the Green
Jobs Act of 2007, the Secretary, in consultation
with the Secretary of Energy, shall establish an
energy efficiency and renewable energy worker
training program under which the Secretary
shall carry out the activities described in para-
graph (2) to achieve the purposes of this sub-
section.
‘‘(B) ELIGIBILITY.—For purposes of pro-
viding assistance and services under the program
established under this subsection—
‘‘(i) target populations of eligible indi-
viduals to be given priority for training
and other services shall include—
‘‘(I) workers impacted by national
energy and environmental policy;
‘‘(II) individuals in need of up-
dated training related to the energy ef-
ficiency and renewable energy indus-
tries;
‘‘(III) veterans, or past and
present members of reserve components
of the Armed Forces;
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‘‘(IV) unemployed individuals;
‘‘(V) individuals, including at-
risk youth, seeking employment path-
ways out of poverty and into economic
self-sufficiency; and
‘‘(VI) formerly incarcerated, adju-
dicated, nonviolent offenders; and
‘‘(ii) energy efficiency and renewable
energy industries eligible to participate in a
program under this subsection include—
‘‘(I) the energy-efficient building,
construction, and retrofits industries;
‘‘(II) the renewable electric power
industry;
‘‘(III) the energy efficient and ad-
vanced drive train vehicle industry;
‘‘(IV) the biofuels industry;
‘‘(V) the deconstruction and mate-
rials use industries;
‘‘(VI) the energy efficiency assess-
ment industry serving the residential,
commercial, or industrial sectors; and
‘‘(VII) 
manufacturers 
that
produce sustainable products using en-
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vironmentally 
sustainable 
processes
and materials.
‘‘(2) ACTIVITIES.—
‘‘(A) NATIONAL
RESEARCH
PROGRAM.—
Under the program established under paragraph
(1), the Secretary, acting through the Bureau of
Labor Statistics, where appropriate, shall collect
and analyze labor market data to track work-
force trends resulting from energy-related initia-
tives carried out under this subsection. Activities
carried out under this paragraph shall include—
‘‘(i) tracking and documentation of
academic and occupational competencies as
well as future skill needs with respect to re-
newable energy and energy efficiency tech-
nology;
‘‘(ii) tracking and documentation of
occupational information and workforce
training data with respect to renewable en-
ergy and energy efficiency technology;
‘‘(iii) collaborating with State agen-
cies, workforce investments boards, industry,
organized labor, and community and non-
profit organizations to disseminate informa-
tion on successful innovations for labor
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market services and worker training with
respect to renewable energy and energy effi-
ciency technology;
‘‘(iv) serving as a clearinghouse for
best practices in workforce development, job
placement, and collaborative training part-
nerships;
‘‘(v) encouraging the establishment of
workforce training initiatives with respect
to renewable energy and energy efficiency
technologies;
‘‘(vi) linking research and development
in renewable energy and energy efficiency
technology with the development of stand-
ards and curricula for current and future
jobs;
‘‘(vii) assessing new employment and
work practices including career ladder and
upgrade training as well as high perform-
ance work systems; and
‘‘(viii) providing technical assistance
and capacity building to national and
State energy partnerships, including indus-
try and labor representatives.
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‘‘(B) NATIONAL
ENERGY
TRAINING
PART-
NERSHIP GRANTS.—
‘‘(i) IN GENERAL.—Under the program
established under paragraph (1), the Sec-
retary shall award National Energy Train-
ing Partnerships Grants on a competitive
basis to eligible entities to enable such enti-
ties to carry out training that leads to eco-
nomic self-sufficiency and to develop an en-
ergy efficiency and renewable energy indus-
tries workforce. Grants shall be awarded
under this subparagraph so as to ensure ge-
ographic diversity with at least 2 grants
awarded to entities located in each of the 4
Petroleum Administration for Defense Dis-
tricts with no subdistricts, and at least 1
grant awarded to an entity located in each
of the subdistricts of the Petroleum Admin-
istration for Defense District with subdis-
tricts.
‘‘(ii) ELIGIBILITY.—To be eligible to
receive a grant under clause (i), an entity
shall be a nonprofit partnership that—
‘‘(I) includes the equal participa-
tion of industry, including public or
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private employers, and labor organiza-
tions, including joint labor-manage-
ment training programs, and may in-
clude workforce investment boards,
community-based organizations, quali-
fied service and conservation corps,
educational institutions, small busi-
nesses, cooperatives, State and local
veterans agencies, and veterans service
organizations; and
‘‘(II) demonstrates—
‘‘(aa) experience in imple-
menting and operating worker
skills training and education pro-
grams;
‘‘(bb) the ability to identify
and involve in training programs
carried out under this grant, tar-
get populations of individuals
who would benefit from training
and be actively involved in activi-
ties related to energy efficiency
and renewable energy industries;
and
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‘‘(cc) the ability to help indi-
viduals achieve economic self-suf-
ficiency.
‘‘(iii) PRIORITY.—Priority shall be
given to partnerships which leverage addi-
tional public and private resources to fund
training programs, including cash or in-
kind matches from participating employers.
‘‘(C) STATE LABOR MARKET RESEARCH, IN-
FORMATION, AND LABOR EXCHANGE RESEARCH
PROGRAM.—
‘‘(i) IN GENERAL.—Under the program
established under paragraph (1), the Sec-
retary shall award competitive grants to
States to enable such States to administer
labor market and labor exchange informa-
tion programs that include the implementa-
tion of the activities described in clause (ii),
in coordination with the one-stop delivery
system.
‘‘(ii) ACTIVITIES.—A State shall use
amounts awarded under a grant under this
subparagraph to provide funding to the
State agency that administers the Wagner-
Peyser Act and State unemployment com-
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pensation programs to carry out the fol-
lowing activities using State agency merit
staff:
‘‘(I) The identification of job
openings in the renewable energy and
energy efficiency sector.
‘‘(II) The administration of skill
and aptitude testing and assessment
for workers.
‘‘(III) The counseling, case man-
agement, and referral of qualified job
seekers to openings and training pro-
grams, including energy efficiency and
renewable energy training programs.
‘‘(D) STATE
ENERGY
TRAINING
PARTNER-
SHIP PROGRAM.—
‘‘(i) IN GENERAL.—Under the program
established under paragraph (1), the Sec-
retary shall award competitive grants to
States to enable such States to administer
renewable energy and energy efficiency
workforce development programs that in-
clude the implementation of the activities
described in clause (ii).
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‘‘(ii) PARTNERSHIPS.—A State shall
use amounts awarded under a grant under
this subparagraph to award competitive
grants to eligible State Energy Sector Part-
nerships to enable such Partnerships to co-
ordinate with existing apprenticeship and
labor management training programs and
implement training programs that lead to
the economic self-sufficiency of trainees.
‘‘(iii) ELIGIBILITY.—To be eligible to
receive a grant under this subparagraph, a
State Energy Sector Partnership shall—
‘‘(I) consist of nonprofit organiza-
tions that include equal participation
from industry, including public or pri-
vate nonprofit employers, and labor or-
ganizations, including joint labor-
management training programs, and
may include representatives from local
governments, the workforce investment
system, including one-stop career cen-
ters, community based organizations,
qualified 
service 
and 
conservation
corps, community colleges, and other
post-secondary institutions, small busi-
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nesses, cooperatives, State and local
veterans agencies, and veterans service
organizations;
‘‘(II) demonstrate experience in
implementing and operating worker
skills training and education pro-
grams; and
‘‘(III) demonstrate the ability to
identify and involve in training pro-
grams, target populations of workers
who would benefit from training and
be actively involved in activities re-
lated to energy efficiency and renew-
able energy industries.
‘‘(iv) PRIORITY.—In awarding grants
under this subparagraph, the Secretary
shall give priority to States that dem-
onstrate that activities under the grant—
‘‘(I) meet national energy policies
associated with energy efficiency, re-
newable energy, and the reduction of
emissions of greenhouse gases;
‘‘(II) meet State energy policies
associated with energy efficiency, re-
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newable energy, and the reduction of
emissions of greenhouse gases; and
‘‘(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers.
‘‘(v) COORDINATION.—A grantee under
this subparagraph shall coordinate activi-
ties carried out under the grant with exist-
ing other appropriate training programs,
including apprenticeship and labor man-
agement training programs, including such
activities referenced in paragraph (3)(A),
and implement training programs that lead
to the economic self-sufficiency of trainees.
‘‘(E) PATHWAYS
OUT
OF
POVERTY
DEM-
ONSTRATION PROGRAM.—
‘‘(i) IN GENERAL.—Under the program
established under paragraph (1), the Sec-
retary shall award competitive grants of
sufficient size to eligible entities to enable
such entities to carry out training that
leads to economic self-sufficiency. The Sec-
retary shall give priority to entities that
serve individuals in families with income of
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less than 200 percent of the sufficiency
standard for the local areas where the train-
ing is conducted that specifies, as defined by
the State, or where such standard is not es-
tablished, the income needs of families, by
family size, the number and ages of children
in the family, and sub-State geographical
considerations. Grants shall be awards to
ensure geographic diversity.
‘‘(ii) ELIGIBLE ENTITIES.—To be eligi-
ble to receive a grant an entity shall be a
partnership that—
‘‘(I) 
includes 
community-based
nonprofit organizations, educational
institutions with expertise in serving
low-income adults or youth, public or
private employers from the industry
sectors 
described 
in 
paragraph
(1)(B)(ii), and labor organizations
representing workers in such industry
sectors;
‘‘(II) demonstrates a record of
successful experience in implementing
and operating worker skills training
and education programs;
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‘‘(III) 
coordinates 
activities,
where appropriate, with the workforce
investment system; and
‘‘(IV) demonstrates the ability to
recruit individuals for training and to
support such individuals to successful
completion in training programs car-
ried out under this grant, targeting
populations of workers who are or will
be engaged in activities related to en-
ergy efficiency and renewable energy
industries.
‘‘(iii) 
PRIORITIES.—In 
awarding
grants under this paragraph, the Secretary
shall give priority to applicants that—
‘‘(I) target programs to benefit
low-income workers, unemployed youth
and adults, high school dropouts, or
other underserved sectors of the work-
force within areas of high poverty;
‘‘(II) ensure that supportive serv-
ices are integrated with education and
training, and delivered by organiza-
tions with direct access to and experi-
ence with targeted populations;
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‘‘(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers;
‘‘(IV) involve employers and labor
organizations in the determination of
relevant skills and competencies and
ensure that the certificates or creden-
tials that result from the training are
employer-recognized;
‘‘(V) deliver courses at alternative
times (such as evening and weekend
programs) and locations most conven-
ient and accessible to participants and
link adult remedial education with oc-
cupational skills training; and
‘‘(VI) demonstrate substantial ex-
perience in administering local, mu-
nicipal, State, Federal, foundation, or
private entity grants.
‘‘(iv) 
DATA
COLLECTION.—Grantees
shall collect and report the following infor-
mation:
‘‘(I) The number of participants.
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‘‘(II) The demographic character-
istics of participants, including race,
gender, age, parenting status, partici-
pation in other Federal programs, edu-
cation and literacy level at entry, sig-
nificant barriers to employment (such
as limited English proficiency, crimi-
nal record, addiction or mental health
problem requiring treatment, or mental
disability).
‘‘(III) The services received by
participants, including training, edu-
cation, and supportive services.
‘‘(IV) The amount of program
spending per participant.
‘‘(V) Program completion rates.
‘‘(VI) Factors determined as sig-
nificantly interfering with program
participation or completion.
‘‘(VII) The rate of Job placement
and the rate of employment retention
after 1 year.
‘‘(VIII) The average wage at
placement, including any benefits, and
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the rate of average wage increase after
1 year.
‘‘(IX) Any post-employment sup-
portive services provided.
The Secretary shall assist grantees in the
collection of data under this clause by mak-
ing available, where practicable, low-cost
means of tracking the labor market out-
comes of participants, and by providing
standardized reporting forms, where appro-
priate.
‘‘(3) ACTIVITIES.—
‘‘(A) IN GENERAL.—Activities to be carried
out under a program authorized by subpara-
graph (B), (D), or (E) of paragraph (2) shall be
coordinated with existing systems or providers,
as appropriate. Such activities may include—
‘‘(i) occupational skills training, in-
cluding curriculum development, on-the-job
training, and classroom training;
‘‘(ii) safety and health training;
‘‘(iii) the provision of basic skills, lit-
eracy, GED, English as a second language,
and job readiness training;
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‘‘(iv) individual referral and tuition
assistance for a community college training
program, or any training program leading
to an industry-recognized certificate;
‘‘(v) internship programs in fields re-
lated to energy efficiency and renewable en-
ergy;
‘‘(vi) customized training in conjunc-
tion with an existing registered apprentice-
ship program or labor-management part-
nership;
‘‘(vii) incumbent worker and career
ladder training and skill upgrading and re-
training;
‘‘(viii) the implementation of transi-
tional jobs strategies; and
‘‘(ix) the provision of supportive serv-
ices.
‘‘(B) OUTREACH ACTIVITIES.—In addition
to the activities authorized under subparagraph
(A), activities authorized for programs under
subparagraph (E) of paragraph (2) may include
the provision of outreach, recruitment, career
guidance, and case management services.
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‘‘(4) 
WORKER
PROTECTIONS
AND
NON-
DISCRIMINATION REQUIREMENTS.—
‘‘(A) APPLICATION OF WIA.—The provisions
of sections 181 and 188 of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2931 and 2938)
shall apply to all programs carried out with as-
sistance under this subsection.
‘‘(B) CONSULTATION WITH LABOR ORGANI-
ZATIONS.—If a labor organization represents a
substantial number of workers who are engaged
in similar work or training in an area that is
the same as the area that is proposed to be fund-
ed under this Act, the labor organization shall be
provided an opportunity to be consulted and to
submit comments in regard to such a proposal.
‘‘(5) PERFORMANCE MEASURES.—
‘‘(A) IN GENERAL.—The Secretary shall ne-
gotiate and reach agreement with the eligible en-
tities that receive grants and assistance under
this section on performance measures for the in-
dicators of performance referred to in subpara-
graphs (A) and (B) of section 136(b)(2) that will
be used to evaluate the performance of the eligible
entity in carrying out the activities described in
subsection (e)(2). Each performance measure
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shall consist of such an indicator of performance,
and a performance level referred to in subpara-
graph (B).
‘‘(B) PERFORMANCE
LEVELS.—The Sec-
retary shall negotiate and reach agreement with
the eligible entity regarding the levels of perform-
ance expected to be achieved by the eligible entity
on the indicators of performance.
‘‘(6) REPORT.—
‘‘(A) STATUS REPORT.—Not later than 18
months after the date of enactment of the Green
Jobs Act of 2007, the Secretary shall transmit a
report to the Senate Committee on Energy and
Natural Resources, the Senate Committee on
Health, Education, Labor, and Pensions, the
House Committee on Education and Labor, and
the House Committee on Energy and Commerce
on the training program established by this sub-
section. The report shall include a description of
the entities receiving funding and the activities
carried out by such entities.
‘‘(B) EVALUATION.—Not later than 3 years
after the date of enactment of such Act, the Sec-
retary shall transmit to the Senate Committee on
Energy and Natural Resources, the Senate Com-
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mittee on Health, Education, Labor, and Pen-
sions, the House Committee on Education and
Labor, and the House Committee on Energy and
Commerce an assessment of such program and
an evaluation of the activities carried out by en-
tities receiving funding from such program.
‘‘(7) DEFINITION.—As used in this subsection,
the term ‘renewable energy’ has the meaning given
such term in section 203(b)(2) of the Energy Policy
Act of 2005 (Public Law 109–58).
‘‘(8) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection, $125,000,000 for each fiscal years, of
which—
‘‘(A) not to exceed 20 percent of the amount
appropriated in each such fiscal year shall be
made available for, and shall be equally divided
between, national labor market research and in-
formation under paragraph (2)(A) and State
labor market information and labor exchange re-
search under paragraph (2)(C), and not more
than 2 percent of such amount shall be for the
evaluation and report required under paragraph
(4);
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‘‘(B) 20 percent shall be dedicated to Path-
ways Out of Poverty Demonstration Programs
under paragraph (2)(E); and
‘‘(C) the remainder shall be divided equally
between National Energy Partnership Training
Grants under paragraph (2)(B) and State en-
ergy training partnership grants under para-
graph (2)(D).’’.
TITLE XI—ENERGY TRANSPOR-
TATION 
AND 
INFRASTRUC-
TURE
Subtitle A—Department of
Transportation
SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRON-
MENT.
(a) IN GENERAL.—Section 102 of title 49, United
States Code, is amended—
(1) by redesignating subsection (g) as subsection
(h); and
(2) by inserting after subsection (f) the following:
‘‘(g) OFFICE
OF CLIMATE CHANGE
AND ENVIRON-
MENT.—
‘‘(1) ESTABLISHMENT.—There is established in
the Department an Office of Climate Change and En-
vironment to plan, coordinate, and implement—
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‘‘(A) department-wide research, strategies,
and actions under the Department’s statutory
authority to reduce transportation-related energy
use and mitigate the effects of climate change;
and
‘‘(B) department-wide research strategies
and actions to address the impacts of climate
change on transportation systems and infra-
structure.
‘‘(2) CLEARINGHOUSE.—The Office shall estab-
lish a clearinghouse of solutions, including cost-effec-
tive congestion reduction approaches, to reduce air
pollution and transportation-related energy use and
mitigate the effects of climate change.’’.
(b) COORDINATION.—The Office of Climate Change
and Environment of the Department of Transportation
shall coordinate its activities with the United States Global
Change Research Program.
(c) TRANSPORTATION SYSTEM’S IMPACT ON CLIMATE
CHANGE AND FUEL EFFICIENCY.—
(1) STUDY.—The Office of Climate Change and
Environment, in coordination with the Environ-
mental Protection Agency and in consultation with
the United States Global Change Research Program,
shall conduct a study to examine the impact of the
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Nation’s transportation system on climate change and
the fuel efficiency savings and clean air impacts of
major transportation projects, to identify solutions to
reduce air pollution and transportation-related en-
ergy use and mitigate the effects of climate change,
and to examine the potential fuel savings that could
result from changes in the current transportation sys-
tem and through the use of intelligent transportation
systems that help businesses and consumers to plan
their travel and avoid delays, including Web-based
real-time transit information systems, congestion in-
formation systems, carpool information systems,
parking information systems, freight route manage-
ment systems, and traffic management systems.
(2) REPORT.—Not later than one year after the
date of enactment of this Act, the Secretary of Trans-
portation, in coordination with the Administrator of
the Environmental Protection Agency, shall transmit
to the Committee on Transportation and Infrastruc-
ture and the Committee on Energy and Commerce of
the House of Representatives and the Committee on
Commerce, Science, and Transportation and the Com-
mittee on Environment and Public Works of the Sen-
ate a report that contains the results of the study re-
quired under this section.
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(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Transpor-
tation for the Office of Climate Change and Environment
to carry out its duties under section 102(g) of title 49,
United States Code (as amended by this Act), such sums
as may be necessary for fiscal years 2008 through 2011.
Subtitle B—Railroads
SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT
PILOT PROGRAM.
(a) IN GENERAL.—The Secretary of Transportation,
in consultation with the Administrator of the Environ-
mental Protection Agency, shall establish and carry out a
pilot program for making grants to railroad carriers (as
defined in section 20102 of title 49, United States Code)
and State and local governments—
(1) for assistance in purchasing hybrid or other
energy-efficient locomotives, including hybrid switch
and generator-set locomotives; and
(2) to demonstrate the extent to which such loco-
motives increase fuel economy, reduce emissions, and
lower costs of operation.
(b) LIMITATION.—Notwithstanding subsection (a), no
grant under this section may be used to fund the costs of
emissions reductions that are mandated under Federal law.
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(c) GRANT CRITERIA.—In selecting applicants for
grants under this section, the Secretary of Transportation
shall consider—
(1) the level of energy efficiency that would be
achieved by the proposed project;
(2) the extent to which the proposed project
would assist in commercial deployment of hybrid or
other energy-efficient locomotive technologies;
(3) the extent to which the proposed project com-
plements other private or governmental partnership
efforts to improve air quality or fuel efficiency in a
particular area; and
(4) the extent to which the applicant dem-
onstrates innovative strategies and a financial com-
mitment to increasing energy efficiency and reducing
greenhouse gas emissions of its railroad operations.
(d) COMPETITIVE GRANT SELECTION PROCESS.—
(1) APPLICATIONS.—A railroad carrier or State
or local government seeking a grant under this section
shall submit for approval by the Secretary of Trans-
portation an application for the grant containing
such information as the Secretary of Transportation
may require.
(2) COMPETITIVE SELECTION.—The Secretary of
Transportation shall conduct a national solicitation
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for applications for grants under this section and
shall select grantees on a competitive basis.
(e) FEDERAL SHARE.—The Federal share of the cost
of a project under this section shall not exceed 80 percent
of the project cost.
(f) REPORT.—Not later than 3 years after the date of
enactment of this Act, the Secretary of Transportation shall
submit to Congress a report on the results of the pilot pro-
gram carried out under this section.
(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary of Transpor-
tation $10,000,000 for each of the fiscal years 2008 through
2011 to carry out this section. Such funds shall remain
available until expended.
SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III
RAILROADS.
(a) AMENDMENT.—Chapter 223 of title 49, United
States Code, is amended to read as follows:
‘‘CHAPTER 223—CAPITAL GRANTS FOR
CLASS II AND CLASS III RAILROADS
‘‘Sec.
‘‘22301. Capital grants for class II and class III railroads.
‘‘§ 22301. Capital grants for class II and class III rail-
roads
‘‘(a) ESTABLISHMENT OF PROGRAM.—
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‘‘(1) ESTABLISHMENT.—The Secretary of Trans-
portation shall establish a program for making cap-
ital grants to class II and class III railroads. Such
grants shall be for projects in the public interest
that—
‘‘(A)(i) rehabilitate, preserve, or improve
railroad track (including roadbed, bridges, and
related track structures) used primarily for
freight transportation;
‘‘(ii) facilitate the continued or greater use
of railroad transportation for freight shipments;
and
‘‘(iii) reduce the use of less fuel efficient
modes of transportation in the transportation of
such shipments; and
‘‘(B) demonstrate innovative technologies
and advanced research and development that in-
crease fuel economy, reduce greenhouse gas emis-
sions, and lower the costs of operation.
‘‘(2) PROVISION
OF
GRANTS.—Grants may be
provided under this chapter—
‘‘(A) directly to the class II or class III
railroad; or
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‘‘(B) with the concurrence of the class II or
class III railroad, to a State or local govern-
ment.
‘‘(3) STATE COOPERATION.—Class II and class
III railroad applicants for a grant under this chapter
are encouraged to utilize the expertise and assistance
of State transportation agencies in applying for and
administering such grants. State transportation agen-
cies are encouraged to provide such expertise and as-
sistance to such railroads.
‘‘(4) REGULATIONS.—Not later than October 1,
2008, the Secretary shall issue final regulations to
implement the program under this section.
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum
Federal share for carrying out a project under this section
shall be 80 percent of the project cost. The non-Federal share
may be provided by any non-Federal source in cash, equip-
ment, or supplies. Other in-kind contributions may be ap-
proved by the Secretary on a case-by-case basis consistent
with this chapter.
‘‘(c) USE OF FUNDS.—Grants provided under this sec-
tion shall be used to implement track capital projects as
soon as possible. In no event shall grant funds be contrac-
tually obligated for a project later than the end of the third
Federal fiscal year following the year in which the grant
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was awarded. Any funds not so obligated by the end of such
fiscal year shall be returned to the Secretary for realloca-
tion.
‘‘(d) EMPLOYEE PROTECTION.—The Secretary shall
require as a condition of any grant made under this section
that the recipient railroad provide a fair arrangement at
least as protective of the interests of employees who are af-
fected by the project to be funded with the grant as the terms
imposed under section 11326(a), as in effect on the date
of the enactment of this chapter.
‘‘(e) LABOR STANDARDS.—
‘‘(1) PREVAILING WAGES.—The Secretary shall
ensure that laborers and mechanics employed by con-
tractors and subcontractors in construction work fi-
nanced by a grant made under this section will be
paid wages not less than those prevailing on similar
construction in the locality, as determined by the Sec-
retary of Labor under subchapter IV of chapter 31 of
title 40 (commonly known as the ‘Davis-Bacon Act’).
The Secretary shall make a grant under this section
only after being assured that required labor standards
will be maintained on the construction work.
‘‘(2) WAGE RATES.—Wage rates in a collective
bargaining agreement negotiated under the Railway
Labor Act (45 U.S.C. 151 et seq.) are deemed for pur-
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poses of this subsection to comply with the subchapter
IV of chapter 31 of title 40.
‘‘(f) STUDY.—The Secretary shall conduct a study of
the projects carried out with grant assistance under this
section to determine the extent to which the program helps
promote a reduction in fuel use associated with the trans-
portation of freight and demonstrates innovative tech-
nologies that increase fuel economy, reduce greenhouse gas
emissions, and lower the costs of operation. Not later than
March 31, 2009, the Secretary shall submit a report to the
Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate on the study, in-
cluding any recommendations the Secretary considers ap-
propriate regarding the program.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary $50,000,000
for each of fiscal years 2008 through 2011 for carrying out
this section.’’.
(b) CLERICAL AMENDMENT.—The item relating to
chapter 223 in the table of chapters of subtitle V of title
49, United States Code, is amended to read as follows:
‘‘223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAIL-
ROADS ............................................................................... 22301’’.
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Subtitle C—Marine Transportation
SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.
(a) IN GENERAL.—Title 46, United States Code, is
amended by adding after chapter 555 the following:
‘‘CHAPTER 556—SHORT SEA
TRANSPORTATION
‘‘Sec. 55601. Short sea transportation program.
‘‘Sec. 55602. Cargo and shippers.
‘‘Sec. 55603. Interagency coordination.
‘‘Sec. 55604. Research on short sea transportation.
‘‘Sec. 55605. Short sea transportation defined.
‘‘§ 55601. Short sea transportation program
‘‘(a) ESTABLISHMENT.—The Secretary of 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 de-
velopment and expansion of—
‘‘(1) documented vessels;
‘‘(2) shipper utilization;
‘‘(3) port and landside infrastructure; and
‘‘(4) marine transportation strategies by State
and local governments.
‘‘(c) SHORT SEA TRANSPORTATION ROUTES.—The
Secretary shall designate short sea transportation routes as
extensions of the surface transportation system to focus pub-
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lic 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 ves-
sels.
‘‘(e) ELEMENTS OF PROGRAM.—For a short sea trans-
portation project designated under this section, the Sec-
retary may—
‘‘(1) promote the development of short sea trans-
portation services;
‘‘(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and
the private sector and on the development of landside
facilities and infrastructure to support short sea
transportation services; and
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‘‘(3) develop performance measures for the short
sea transportation program.
‘‘(f) MULTISTATE, STATE AND REGIONAL TRANSPOR-
TATION PLANNING.—The Secretary, in consultation with
Federal entities and State and local governments, shall de-
velop strategies to encourage the use of short sea transpor-
tation for transportation of passengers and cargo. The Sec-
retary 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 in-
corporate 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, bottlenecks,
and other interstate transportation challenges.
‘‘§ 55602. Cargo and shippers
‘‘(a) MEMORANDUMS OF AGREEMENT.—The Secretary
of Transportation shall enter into memorandums of under-
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standing with the heads of other Federal entities to trans-
port federally owned or generated cargo using a short sea
transportation project designated under section 55601 when
practical or available.
‘‘(b) SHORT-TERM INCENTIVES.—The Secretary shall
consult shippers and other participants in transportation
logistics and develop proposals for short-term incentives to
encourage the use of short sea transportation.
‘‘§ 55603. Interagency coordination
‘‘The Secretary of Transportation shall establish a
board to identify and seek solutions to impediments hin-
dering effective use of short sea transportation. The board
shall include representatives of the Environmental Protec-
tion Agency and other Federal, State, and local govern-
mental entities and private sector entities.
‘‘§ 55604. Research on short sea transportation
‘‘The Secretary of Transportation, in consultation
with the Administrator of the Environmental Protection
Agency, may conduct research on short sea transportation,
regarding—
‘‘(1) the environmental and transportation bene-
fits to be derived from short sea transportation alter-
natives for other forms of transportation;
‘‘(2) technology, vessel design, and other im-
provements that would reduce emissions, increase fuel
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economy, and lower costs of short sea transportation
and increase the efficiency of intermodal transfers;
and
‘‘(3) solutions to impediments to short sea trans-
portation projects designated under section 55601.
‘‘§ 55605. Short sea transportation defined
‘‘In this chapter, the term ‘short sea transportation’
means the carriage by vessel of cargo—
‘‘(1) that is—
‘‘(A) contained in intermodal cargo con-
tainers and loaded by crane on the vessel; or
‘‘(B) loaded on the vessel by means of
wheeled technology; and
‘‘(2) that is—
‘‘(A) loaded at a port in the United States
and unloaded either at another port in the
United States or at a port in Canada located in
the Great Lakes Saint Lawrence Seaway Sys-
tem; or
‘‘(B) loaded at a port in Canada located in
the Great Lakes Saint Lawrence Seaway System
and unloaded at a port in the United States.’’.
(b) CLERICAL AMENDMENT.—The table of chapters at
the beginning of subtitle V of such title is amended by in-
serting after the item relating to chapter 555 the following:
‘‘556. Short Sea Transportation .......................................................55601’’.
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(c) REGULATIONS.—
(1) INTERIM REGULATIONS.—Not later than 90
days after the date of enactment of this Act, the Sec-
retary of Transportation shall issue temporary regu-
lations to implement the program under this section.
Subchapter II of chapter 5 of title 5, United States
Code, does not apply to a temporary regulation issued
under this paragraph or to an amendment to such a
temporary regulation.
(2) FINAL REGULATIONS.—Not later than Octo-
ber 1, 2008, the Secretary of Transportation shall
issue final regulations to implement the program
under this section.
SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL
CONSTRUCTION FUND.
(a) DEFINITION
OF
QUALIFIED
VESSEL.—Section
53501 of title 46, United States Code, is amended—
(1) in paragraph (5)(A)(iii) by striking ‘‘or non-
contiguous domestic’’ and inserting ‘‘noncontiguous
domestic, or short sea transportation trade’’; and
(2) by inserting after paragraph (6) the fol-
lowing:
‘‘(7) SHORT SEA TRANSPORTATION TRADE.—The
term ‘short sea transportation trade’ means the car-
riage by vessel of cargo—
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and Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate a report on the short sea transportation program
established under the amendments made by section 1121.
The report shall include a description of the activities con-
ducted under the program, and any recommendations for
further legislative or administrative action that the Sec-
retary of Transportation considers appropriate.
Subtitle D—Highways
SEC. 
1131. 
INCREASED 
FEDERAL 
SHARE 
FOR 
CMAQ
PROJECTS.
Section 120(c) of title 23, United States Code, is
amended—
(1) in the subsection heading by striking ‘‘FOR
CERTAIN SAFETY PROJECTS’’;
(2) by striking ‘‘The Federal share’’ and insert-
ing the following:
‘‘(1) CERTAIN SAFETY PROJECTS.—The Federal
share’’; and
(3) by adding at the end the following:
‘‘(2) CMAQ PROJECTS.—The Federal share pay-
able on account of a project or program carried out
under section 149 with funds obligated in fiscal year
2008 or 2009, or both, shall be not less than 80 per-
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cent and, at the discretion of the State, may be up
to 100 percent of the cost thereof.’’.
SEC. 1132. DISTRIBUTION OF RESCISSIONS.
(a) IN
GENERAL.—Any unobligated balances of
amounts that are appropriated from the Highway Trust
Fund for a fiscal year, and apportioned under chapter 1
of title 23, United States Code, before, on, or after the date
of enactment of this Act and that are rescinded in fiscal
year 2008 or fiscal year 2009 shall be distributed by the
Secretary of Transportation within each State (as defined
in section 101 of such title) among all programs for which
funds are apportioned under such chapter for such fiscal
year, to the extent sufficient funds remain available for obli-
gation, in the ratio that the amount of funds apportioned
for each program under such chapter for such fiscal year,
bears to the amount of funds apportioned for all such pro-
grams under such chapter for such fiscal year.
(b) ADJUSTMENTS.—A State may make adjustments
to the distribution of a rescission within the State for a
fiscal year under subsection (a) by transferring the amounts
to be rescinded among the programs for which funds are
apportioned under chapter 1 of title 23, United States Code,
for such fiscal year, except that in making such adjustments
the State may not rescind from any such program more
than 110 percent of the funds to be rescinded from the pro-
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gram for the fiscal year as determined by the Secretary of
Transportation under subsection (a).
(c) TREATMENT OF TRANSPORTATION ENHANCEMENT
SET-ASIDE
AND FUNDS SUBALLOCATED
TO SUBSTATE
AREAS.—Funds set aside under sections 133(d)(2) and
133(d)(3) of title 23, United States Code, shall be treated
as being apportioned under chapter 1 of such title for pur-
poses of subsection (a).
SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COM-
PLETE STREETS DESIGN TECHNIQUES.
It is the sense of Congress that in constructing new
roadways or rehabilitating existing facilities, State and
local governments should consider policies designed to ac-
commodate all users, including motorists, pedestrians, cy-
clists, transit riders, and people of all ages and abilities,
in order to—
(1) serve all surface transportation users by cre-
ating a more interconnected and intermodal system;
(2) create more viable transportation options;
and
(3) facilitate the use of environmentally friendly
options, such as public transportation, walking, and
bicycling.
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TITLE XII—SMALL BUSINESS
ENERGY PROGRAMS
SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND
ENERGY EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended by adding at the end the following:
‘‘(F) EXPRESS LOANS FOR RENEWABLE EN-
ERGY AND ENERGY EFFICIENCY.—
‘‘(i) 
DEFINITIONS.—In 
this
subparagraph—
‘‘(I) the term ‘biomass’—
‘‘(aa) means any organic
material that is available on a re-
newable 
or 
recurring 
basis,
including—
‘‘(AA) 
agricultural
crops;
‘‘(BB) trees grown for
energy production;
‘‘(CC) wood waste and
wood residues;
‘‘(DD) plants (including
aquatic plants and grasses);
‘‘(EE) residues;
‘‘(FF) fibers;
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‘‘(GG) animal wastes
and other waste materials;
and
‘‘(HH) fats, oils, and
greases (including recycled
fats, oils, and greases); and
‘‘(bb) does not include—
‘‘(AA) paper that is
commonly recycled; or
‘‘(BB) 
unsegregated
solid waste;
‘‘(II) the term ‘energy efficiency
project’ means the installation or up-
grading of equipment that results in a
significant reduction in energy usage;
and
‘‘(III) the term ‘renewable energy
system’ means a system of energy de-
rived from—
‘‘(aa) a wind, solar, biomass
(including 
biodiesel), 
or 
geo-
thermal source; or
‘‘(bb) hydrogen derived from
biomass or water using an energy
source described in item (aa).
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‘‘(II) the proceeds of which are
used to purchase energy efficient de-
signs, equipment, or fixtures, or to re-
duce the energy consumption of the
borrower by 10 percent or more; and
‘‘(iii) the term ‘pilot program’ means
the pilot program established under sub-
paragraph (B)
‘‘(B) ESTABLISHMENT.—The Administrator
shall establish and carry out a pilot program
under which the Administrator shall reduce the
fees for covered energy efficiency loans.
‘‘(C) DURATION.—The pilot program shall
terminate at the end of the second full fiscal year
after the date that the Administrator establishes
the pilot program.
‘‘(D) MAXIMUM PARTICIPATION.—A covered
energy efficiency loan shall include the max-
imum participation levels by the Administrator
permitted for loans made under this subsection.
‘‘(E) FEES.—
‘‘(i) IN GENERAL.—The fee on a cov-
ered energy efficiency loan shall be equal to
50 percent of the fee otherwise applicable to
that loan under paragraph (18).
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‘‘(ii) 
WAIVER.—The 
Administrator
may waive clause (i) for a fiscal year if—
‘‘(I) for the fiscal year before that
fiscal year, the annual rate of default
of covered energy efficiency loans ex-
ceeds that of loans made under this
subsection that are not covered energy
efficiency loans;
‘‘(II) the cost to the Administra-
tion of making loans under this sub-
section is greater than zero and such
cost is directly attributable to the cost
of making covered energy efficiency
loans; and
‘‘(III) no additional sources of
revenue authority are available to re-
duce the cost of making loans under
this subsection to zero.
‘‘(iii) EFFECT OF WAIVER.—If the Ad-
ministrator waives the reduction of fees
under clause (ii), the Administrator—
‘‘(I) shall not assess or collect fees
in an amount greater than necessary
to ensure that the cost of the program
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under this subsection is not greater
than zero; and
‘‘(II) shall reinstate the fee reduc-
tions under clause (i) when the condi-
tions in clause (ii) no longer apply.
‘‘(iv) NO INCREASE OF FEES.—The Ad-
ministrator shall not increase the fees under
paragraph (18) on loans made under this
subsection that are not covered energy effi-
ciency loans as a direct result of the pilot
program.
‘‘(F) GAO REPORT.—
‘‘(i) IN GENERAL.—Not later than 1
year after the date that the pilot program
terminates, the Comptroller General of the
United States shall submit to the Committee
on Small Business of the House of Rep-
resentatives and the Committee on Small
Business and Entrepreneurship of the Sen-
ate a report on the pilot program.
‘‘(ii) 
CONTENTS.—The 
report 
sub-
mitted under clause (i) shall include—
‘‘(I) the number of covered energy
efficiency loans for which fees were re-
duced under the pilot program;
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‘‘(II) a description of the energy
efficiency savings with the pilot pro-
gram;
‘‘(III) a description of the impact
of the pilot program on the program
under this subsection;
‘‘(IV) an evaluation of the efficacy
and potential fraud and abuse of the
pilot program; and
‘‘(V) recommendations for improv-
ing the pilot program.’’.
SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.
(a) DEFINITIONS.—In this section—
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and
the Administrator thereof, respectively;
(2) the term ‘‘association’’ means the association
of small business development centers established
under section 21(a)(3)(A) of the Small Business Act
(15 U.S.C. 648(a)(3)(A));
(3) the term ‘‘disability’’ has the meaning given
that term in section 3 of the Americans with Disabil-
ities Act of 1990 (42 U.S.C. 12102);
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(4) the term ‘‘Efficiency Program’’ means the
Small Business Energy Efficiency Program estab-
lished under subsection (c)(1);
(5) the term ‘‘electric utility’’ has the meaning
given that term in section 3 of the Public Utility Reg-
ulatory Policies Act of 1978 (16 U.S.C. 2602);
(6) the term ‘‘high performance green building’’
has the meaning given that term in section 401;
(7) the term ‘‘on-bill financing’’ means a low in-
terest or no interest financing agreement between a
small business concern and an electric utility for the
purchase or installation of equipment, under which
the regularly scheduled payment of that small busi-
ness concern to that electric utility is not reduced by
the amount of the reduction in cost attributable to the
new equipment and that amount is credited to the
electric utility, until the cost of the purchase or in-
stallation is repaid;
(8) the term ‘‘small business concern’’ has the
same meaning as in section 3 of the Small Business
Act (15 U.S.C. 632);
(9) the term ‘‘small business development center’’
means a small business development center described
in section 21 of the Small Business Act (15 U.S.C.
648);
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(10) the term ‘‘telecommuting’’ means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to
commute;
(11) the term ‘‘Telecommuting Pilot Program’’
means the pilot program established under subsection
(d)(1)(A); and
(12) the term ‘‘veteran’’ has the meaning given
that term in section 101 of title 38, United States
Code.
(b) IMPLEMENTATION OF SMALL BUSINESS ENERGY
EFFICIENCY PROGRAM.—
(1) IN GENERAL.—Not later than 90 days after
the date of enactment of this Act, the Administrator
shall promulgate final rules establishing the Govern-
ment-wide program authorized under subsection (d)
of section 337 of the Energy Policy and Conservation
Act (42 U.S.C. 6307) that ensure compliance with
that subsection by not later than 6 months after such
date of enactment.
(2) PROGRAM
REQUIRED.—The Administrator
shall develop and coordinate a Government-wide pro-
gram, building on the Energy Star for Small Busi-
ness program, to assist small business concerns in—
(A) becoming more energy efficient;
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(B) understanding the cost savings from
improved energy efficiency; and
(C) identifying financing options for energy
efficiency upgrades.
(3) CONSULTATION
AND
COOPERATION.—The
program required by paragraph (2) shall be developed
and coordinated—
(A) in consultation with the Secretary of
Energy and the Administrator of the Environ-
mental Protection Agency; and
(B) in cooperation with any entities the Ad-
ministrator considers appropriate, such as in-
dustry trade associations, industry members, and
energy efficiency organizations.
(4) AVAILABILITY
OF
INFORMATION.—The Ad-
ministrator shall make available the information and
materials developed under the program required by
paragraph (2) to—
(A) small business concerns, including
smaller design, engineering, and construction
firms; and
(B) other Federal programs for energy effi-
ciency, such as the Energy Star for Small Busi-
ness program.
(5) STRATEGY AND REPORT.—
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(A) STRATEGY REQUIRED.—The Adminis-
trator shall develop a strategy to educate, encour-
age, and assist small business concerns in adopt-
ing energy efficient building fixtures and equip-
ment.
(B) REPORT.—Not later than December 31,
2008, the Administrator shall submit to Congress
a report containing a plan to implement the
strategy developed under subparagraph (A).
(c) SMALL BUSINESS SUSTAINABILITY INITIATIVE.—
(1) AUTHORITY.—The Administrator shall estab-
lish a Small Business Energy Efficiency Program to
provide energy efficiency assistance to small business
concerns through small business development centers.
(2) SMALL BUSINESS DEVELOPMENT CENTERS.—
(A) IN GENERAL.—In carrying out the Effi-
ciency Program, the Administrator shall enter
into agreements with small business development
centers under which such centers shall—
(i) provide access to information and
resources on energy efficiency practices, in-
cluding on-bill financing options;
(ii) conduct training and educational
activities;
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(iii) offer confidential, free, one-on-one,
in-depth energy audits to the owners and
operators of small business concerns regard-
ing energy efficiency practices;
(iv) give referrals to certified profes-
sionals and other providers of energy effi-
ciency assistance who meet such standards
for educational, technical, and professional
competency as the Administrator shall es-
tablish;
(v) to the extent not inconsistent with
controlling State public utility regulations,
act as a facilitator between small business
concerns, electric utilities, lenders, and the
Administration to facilitate on-bill financ-
ing arrangements;
(vi) provide necessary support to small
business concerns to—
(I) evaluate energy efficiency op-
portunities and opportunities to design
or construct high performance green
buildings;
(II) evaluate renewable energy
sources, such as the use of solar and
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small wind to supplement power con-
sumption;
(III) secure financing to achieve
energy efficiency or to design or con-
struct high performance green build-
ings; and
(IV) implement energy efficiency
projects;
(vii) assist owners of small business
concerns with the development and commer-
cialization of clean technology products,
goods, services, and processes that use re-
newable energy sources, dramatically reduce
the use of natural resources, and cut or
eliminate 
greenhouse 
gas 
emissions
through—
(I) technology assessment;
(II) intellectual property;
(III) Small Business Innovation
Research submissions under section 9
of the Small Business Act (15 U.S.C.
638);
(IV) strategic alliances;
(V) business model development;
and
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(VI) preparation for investors;
and
(viii) help small business concerns im-
prove environmental performance by shift-
ing to less hazardous materials and reduc-
ing waste and emissions, including by pro-
viding assistance for small business con-
cerns to adapt the materials they use, the
processes they operate, and the products and
services they produce.
(B) REPORTS.—Each small business devel-
opment center participating in the Efficiency
Program shall submit to the Administrator and
the Administrator of the Environmental Protec-
tion Agency an annual report that includes—
(i) a summary of the energy efficiency
assistance provided by that center under the
Efficiency Program;
(ii) the number of small business con-
cerns assisted by that center under the Effi-
ciency Program;
(iii) statistics on the total amount of
energy saved as a result of assistance pro-
vided by that center under the Efficiency
Program; and
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(iv) any additional information deter-
mined necessary by the Administrator, in
consultation with the association.
(C) REPORTS
TO
CONGRESS.—Not later
than 60 days after the date on which all reports
under subparagraph (B) relating to a year are
submitted, the Administrator shall submit to the
Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small
Business of the House of Representatives a report
summarizing the information regarding the Effi-
ciency Program submitted by small business de-
velopment centers participating in that program.
(3) ELIGIBILITY.—A small business development
center shall be eligible to participate in the Efficiency
Program only if that center is certified under section
21(k)(2) of the Small Business Act (15 U.S.C.
648(k)(2)).
(4) SELECTION OF PARTICIPATING STATE PRO-
GRAMS.—From among small business development
centers submitting applications to participate in the
Efficiency Program, the Administrator—
(A) shall, to the maximum extent prac-
ticable, select small business development centers
in such a manner so as to promote a nationwide
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distribution of centers participating in the Effi-
ciency Program; and
(B) may not select more than 1 small busi-
ness development center in a State to participate
in the Efficiency Program.
(5) MATCHING
REQUIREMENT.—Subparagraphs
(A) and (B) of section 21(a)(4) of the Small Business
Act (15 U.S.C. 648(a)(4)) shall apply to assistance
made available under the Efficiency Program.
(6) GRANT AMOUNTS.—Each small business de-
velopment center selected to participate in the Effi-
ciency Program under paragraph (4) shall be eligible
to receive a grant in an amount equal to—
(A) not less than $100,000 in each fiscal
year; and
(B) not more than $300,000 in each fiscal
year.
(7) EVALUATION AND REPORT.—The Comptroller
General of the United States shall—
(A) not later than 30 months after the date
of disbursement of the first grant under the Effi-
ciency Program, initiate an evaluation of that
program; and
(B) not later than 6 months after the date
of the initiation of the evaluation under sub-
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paragraph (A), submit to the Administrator, the
Committee on Small Business and Entrepreneur-
ship of the Senate, and the Committee on Small
Business of the House of Representatives, a re-
port containing—
(i) the results of the evaluation; and
(ii) any recommendations regarding
whether the Efficiency Program, with or
without modification, should be extended to
include the participation of all small busi-
ness development centers.
(8) GUARANTEE.—To the extent not inconsistent
with State law, the Administrator may guarantee the
timely payment of a loan made to a small business
concern through an on-bill financing agreement on
such terms and conditions as the Administrator shall
establish through a formal rule making, after pro-
viding notice and an opportunity for comment.
(9) IMPLEMENTATION.—Subject to amounts ap-
proved in advance in appropriations Acts and sepa-
rate from amounts approved to carry out section
21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)), the Administrator may make grants or
enter into cooperative agreements to carry out this
subsection.
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(10) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums as
are necessary to make grants and enter into coopera-
tive agreements to carry out this subsection.
(11) TERMINATION.—The authority under this
subsection shall terminate 4 years after the date of
disbursement of the first grant under the Efficiency
Program.
(d) SMALL BUSINESS TELECOMMUTING.—
(1) PILOT PROGRAM.—
(A) IN GENERAL.—The Administrator shall
conduct, in not more than 5 of the regions of the
Administration, a pilot program to provide in-
formation regarding telecommuting to employers
that are small business concerns and to encour-
age such employers to offer telecommuting op-
tions to employees.
(B) SPECIAL
OUTREACH
TO
INDIVIDUALS
WITH DISABILITIES.—In carrying out the Tele-
commuting Pilot Program, the Administrator
shall make a concerted effort to provide informa-
tion to—
(i) small business concerns owned by
or employing individuals with disabilities,
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particularly veterans who are individuals
with disabilities;
(ii) Federal, State, and local agencies
having knowledge and expertise in assisting
individuals with disabilities, including vet-
erans who are individuals with disabilities;
and
(iii) any group or organization, the
primary purpose of which is to aid individ-
uals with disabilities or veterans who are
individuals with disabilities.
(C) PERMISSIBLE ACTIVITIES.—In carrying
out the Telecommuting Pilot Program, the Ad-
ministrator may—
(i) produce educational materials and
conduct presentations designed to raise
awareness in the small business community
of the benefits and the ease of telecom-
muting;
(ii) conduct outreach—
(I) to small business concerns that
are considering offering telecommuting
options; and
(II) as provided in subparagraph
(B); and
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(iii) 
acquire 
telecommuting 
tech-
nologies and equipment to be used for dem-
onstration purposes.
(D) SELECTION
OF
REGIONS.—In deter-
mining which regions will participate in the
Telecommuting Pilot Program, the Adminis-
trator shall give priority consideration to regions
in which Federal agencies and private-sector em-
ployers have demonstrated a strong regional
commitment to telecommuting.
(2) REPORT TO CONGRESS.—Not later than 2
years after the date on which funds are first appro-
priated to carry out this subsection, the Adminis-
trator shall transmit to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Rep-
resentatives a report containing the results of an eval-
uation of the Telecommuting Pilot Program and any
recommendations regarding whether the pilot pro-
gram, with or without modification, should be ex-
tended to include the participation of all regions of
the Administration.
(3) TERMINATION.—The Telecommuting Pilot
Program shall terminate 4 years after the date on
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which funds are first appropriated to carry out this
subsection.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Admin-
istration $5,000,000 to carry out this subsection.
(e) ENCOURAGING INNOVATION
IN ENERGY EFFI-
CIENCY.—Section 9 of the Small Business Act (15 U.S.C.
638) is amended by adding at the end the following:
‘‘(z) ENCOURAGING INNOVATION
IN ENERGY EFFI-
CIENCY.—
‘‘(1) FEDERAL
AGENCY
ENERGY-RELATED
PRI-
ORITY.—In carrying out its duties under this section
relating to SBIR and STTR solicitations by Federal
departments and agencies, the Administrator shall—
‘‘(A) ensure that such departments and
agencies give high priority to small business con-
cerns that participate in or conduct energy effi-
ciency or renewable energy system research and
development projects; and
‘‘(B) include in the annual report to Con-
gress under subsection (b)(7) a determination of
whether the priority described in subparagraph
(A) is being carried out.
‘‘(2) CONSULTATION REQUIRED.—The Adminis-
trator shall consult with the heads of other Federal
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departments and agencies in determining whether
priority has been given to small business concerns
that participate in or conduct energy efficiency or re-
newable energy system research and development
projects, as required by this subsection.
‘‘(3) GUIDELINES.—The Administrator shall, as
soon as is practicable after the date of enactment of
this subsection, issue guidelines and directives to as-
sist Federal agencies in meeting the requirements of
this subsection.
‘‘(4) DEFINITIONS.—In this subsection—
‘‘(A) the term ‘biomass’—
‘‘(i) means any organic material that
is available on a renewable or recurring
basis, including—
‘‘(I) agricultural crops;
‘‘(II) trees grown for energy pro-
duction;
‘‘(III) wood waste and wood resi-
dues;
‘‘(IV) plants (including aquatic
plants and grasses);
‘‘(V) residues;
‘‘(VI) fibers;
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‘‘(VII) animal wastes and other
waste materials; and
‘‘(VIII) fats, oils, and greases (in-
cluding recycled fats, oils, and greases);
and
‘‘(ii) does not include—
‘‘(I) paper that is commonly recy-
cled; or
‘‘(II) unsegregated solid waste;
‘‘(B) the term ‘energy efficiency project’
means the installation or upgrading of equip-
ment that results in a significant reduction in
energy usage; and
‘‘(C) the term ‘renewable energy system’
means a system of energy derived from—
‘‘(i) a wind, solar, biomass (including
biodiesel), or geothermal source; or
‘‘(ii) hydrogen derived from biomass or
water using an energy source described in
clause (i).’’.
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SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS
DEVELOP 
ENERGY 
EFFICIENT 
TECH-
NOLOGIES AND PURCHASES.
(a) 
ELIGIBILITY
FOR
ENERGY
EFFICIENCY
PROJECTS.—Section 501(d)(3) of the Small Business In-
vestment Act of 1958 (15 U.S.C. 695(d)(3)) is amended—
(1) in subparagraph (G) by striking ‘‘or’’ at the
end;
(2) in subparagraph (H) by striking the period
at the end and inserting a comma;
(3) by inserting after subparagraph (H) the fol-
lowing:
‘‘(I) reduction of energy consumption by at
least 10 percent,
‘‘(J) increased use of sustainable design, in-
cluding designs that reduce the use of greenhouse
gas emitting fossil fuels, or low-impact design to
produce buildings that reduce the use of non-re-
newable resources and minimize environmental
impact, or
‘‘(K) plant, equipment and process up-
grades of renewable energy sources such as the
small-scale production of energy for individual
buildings or communities consumption, com-
monly known as micropower, or renewable fuels
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producers including biodiesel and ethanol pro-
ducers.’’; and
(4) by adding at the end the following: ‘‘In sub-
paragraphs (J) and (K), terms have the meanings
given those terms under the Leadership in Energy
and Environmental Design (LEED) standard for
green building certification, as determined by the Ad-
ministrator.’’.
(b) LOANS FOR PLANT PROJECTS USED FOR ENERGY-
EFFICIENT PURPOSES.—Section 502(2)(A) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is
amended—
(1) in clause (ii) by striking ‘‘and’’ at the end;
(2) in clause (iii) by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(iv) $4,000,000 for each project that
reduces the borrower’s energy consumption
by at least 10 percent; and
‘‘(v) $4,000,000 for each project that
generates renewable energy or renewable
fuels, such as biodiesel or ethanol produc-
tion.’’.
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SEC. 1205. ENERGY SAVING DEBENTURES.
(a) IN GENERAL.—Section 303 of the Small Business
Investment Act of 1958 (15 U.S.C. 683) is amended by add-
ing at the end the following:
‘‘(k) ENERGY SAVING DEBENTURES.—In addition to
any other authority under this Act, a small business invest-
ment company licensed in the first fiscal year after the date
of enactment of this subsection or any fiscal year thereafter
may issue Energy Saving debentures.’’.
(b) DEFINITIONS.—Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended—
(1) in paragraph (16), by striking ‘‘and’’ at the
end;
(2) in paragraph (17), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(18) the term ‘Energy Saving debenture’ means
a deferred interest debenture that—
‘‘(A) is issued at a discount;
‘‘(B) has a 5-year maturity or a 10-year
maturity;
‘‘(C) requires no interest payment or an-
nual charge for the first 5 years;
‘‘(D) is restricted to Energy Saving quali-
fied investments; and
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‘‘(E) is issued at no cost (as defined in sec-
tion 502 of the Credit Reform Act of 1990) with
respect to purchasing and guaranteeing the de-
benture; and
‘‘(19) the term ‘Energy Saving qualified invest-
ment’ means investment in a small business concern
that is primarily engaged in researching, manufac-
turing, developing, or providing products, goods, or
services that reduce the use or consumption of non-re-
newable energy resources.’’.
SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSI-
NESSES.
(a) MAXIMUM LEVERAGE.—Section 303(b)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
303(b)(2)) is amended by adding at the end the following:
‘‘(D) INVESTMENTS
IN
ENERGY
SAVING
SMALL BUSINESSES.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), in calculating the outstanding leverage
of a company for purposes of subparagraph
(A), the Administrator shall exclude the
amount of the cost basis of any Energy Sav-
ing qualified investment in a smaller enter-
prise made in the first fiscal year after the
date of enactment of this subparagraph or
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any fiscal year thereafter by a company li-
censed in the applicable fiscal year.
‘‘(ii) LIMITATIONS.—
‘‘(I) AMOUNT
OF
EXCLUSION.—
The amount excluded under clause (i)
for a company shall not exceed 33 per-
cent of the private capital of that com-
pany.
‘‘(II) MAXIMUM INVESTMENT.—A
company shall not make an Energy
Saving qualified investment in any
one entity in an amount equal to more
than 20 percent of the private capital
of that company.
‘‘(III) OTHER TERMS.—The exclu-
sion of amounts under clause (i) shall
be subject to such terms as the Admin-
istrator may impose to ensure that
there is no cost (as that term is defined
in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a))
with respect to purchasing or guaran-
teeing any debenture involved.’’.
(b) MAXIMUM AGGREGATE AMOUNT OF LEVERAGE.—
Section 303(b)(4) of the Small Business Investment Act of
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1958 (15 U.S.C. 303(b)(4)) is amended by adding at the
end the following:
‘‘(E) INVESTMENTS
IN
ENERGY
SAVING
SMALL BUSINESSES.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), in calculating the aggregate out-
standing leverage of a company for pur-
poses of subparagraph (A), the Adminis-
trator shall exclude the amount of the cost
basis of any Energy Saving qualified in-
vestment in a smaller enterprise made in
the first fiscal year after the date of enact-
ment of this subparagraph or any fiscal
year thereafter by a company licensed in
the applicable fiscal year.
‘‘(ii) LIMITATIONS.—
‘‘(I) AMOUNT
OF
EXCLUSION.—
The amount excluded under clause (i)
for a company shall not exceed 33 per-
cent of the private capital of that com-
pany.
‘‘(II) MAXIMUM INVESTMENT.—A
company shall not make an Energy
Saving qualified investment in any
one entity in an amount equal to more
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than 20 percent of the private capital
of that company.
‘‘(III) OTHER TERMS.—The exclu-
sion of amounts under clause (i) shall
be subject to such terms as the Admin-
istrator may impose to ensure that
there is no cost (as that term is defined
in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a))
with respect to purchasing or guaran-
teeing any debenture involved.’’.
SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COM-
PANY.
Title III of the Small Business Investment Act of 1958
(15 U.S.C. 681 et seq.) is amended by adding at the end
the following:
‘‘PART C—RENEWABLE FUEL CAPITAL
INVESTMENT PILOT PROGRAM
‘‘SEC. 381. DEFINITIONS.
‘‘In this part:
‘‘(1) 
OPERATIONAL
ASSISTANCE.—The 
term
‘operational assistance’ means management, mar-
keting, and other technical assistance that assists a
small business concern with business development.
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‘‘(2) PARTICIPATION
AGREEMENT.—The term
‘participation agreement’ means an agreement, be-
tween the Administrator and a company granted
final approval under section 384(e), that—
‘‘(A) details the operating plan and invest-
ment criteria of the company; and
‘‘(B) requires the company to make invest-
ments in smaller enterprises primarily engaged
in researching, manufacturing, developing, pro-
ducing, or bringing to market goods, products, or
services that generate or support the production
of renewable energy.
‘‘(3) RENEWABLE ENERGY.—The term ‘renewable
energy’ means energy derived from resources that are
regenerative or that cannot be depleted, including
solar, wind, ethanol, and biodiesel fuels.
‘‘(4) RENEWABLE
FUEL
CAPITAL
INVESTMENT
COMPANY.—The term ‘Renewable Fuel Capital Invest-
ment company’ means a company—
‘‘(A) that—
‘‘(i) has been granted final approval by
the Administrator under section 384(e); and
‘‘(ii) has entered into a participation
agreement with the Administrator; or
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‘‘(B) that has received conditional approval
under section 384(c).
‘‘(5) STATE.—The term ‘State’ means each of the
several States, the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, and any other commonwealth, terri-
tory, or possession of the United States.
‘‘(6) VENTURE CAPITAL.—The term ‘venture cap-
ital’ means capital in the form of equity capital in-
vestments, as that term is defined in section
303(g)(4).
‘‘SEC. 382. PURPOSES.
‘‘The purposes of the Renewable Fuel Capital Invest-
ment Program established under this part are—
‘‘(1) to promote the research, development, man-
ufacture, production, and bringing to market of goods,
products, or services that generate or support the pro-
duction of renewable energy by encouraging venture
capital investments in smaller enterprises primarily
engaged such activities; and
‘‘(2) to establish a venture capital program, with
the mission of addressing the unmet equity invest-
ment needs of smaller enterprises engaged in research-
ing, developing, manufacturing, producing, and
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bringing to market goods, products, or services that
generate or support the production of renewable en-
ergy, to be administered by the Administrator—
‘‘(A) to enter into participation agreements
with Renewable Fuel Capital Investment compa-
nies;
‘‘(B) to guarantee debentures of Renewable
Fuel Capital Investment companies to enable
each such company to make venture capital in-
vestments in smaller enterprises engaged in the
research, development, manufacture, production,
and bringing to market of goods, products, or
services that generate or support the production
of renewable energy; and
‘‘(C) to make grants to Renewable Fuel In-
vestment Capital companies, and to other enti-
ties, for the purpose of providing operational as-
sistance to smaller enterprises financed, or ex-
pected to be financed, by such companies.
‘‘SEC. 383. ESTABLISHMENT.
‘‘The Administrator shall establish a Renewable Fuel
Capital Investment Program, under which the Adminis-
trator may—
‘‘(1) enter into participation agreements for the
purposes described in section 382; and
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‘‘(2) guarantee the debentures issued by Renew-
able Fuel Capital Investment companies as provided
in section 385.
‘‘SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL IN-
VESTMENT COMPANIES.
‘‘(a) ELIGIBILITY.—A company is eligible to apply to
be designated as a Renewable Fuel Capital Investment com-
pany if the company—
‘‘(1) is a newly formed for-profit entity or a
newly formed for-profit subsidiary of an existing enti-
ty;
‘‘(2) has a management team with experience in
alternative energy financing or relevant venture cap-
ital financing; and
‘‘(3) has a primary objective of investment in
smaller enterprises that research, manufacture, de-
velop, produce, or bring to market goods, products, or
services that generate or support the production of re-
newable energy.
‘‘(b) APPLICATION.—A company desiring to be des-
ignated as a Renewable Fuel Capital Investment company
shall submit an application to the Administrator that
includes—
‘‘(1) a business plan describing how the company
intends to make successful venture capital investments
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in smaller enterprises primarily engaged in the re-
search, manufacture, development, production, or
bringing to market of goods, products, or services that
generate or support the production of renewable en-
ergy;
‘‘(2) information regarding the relevant venture
capital qualifications and general reputation of the
management of the company;
‘‘(3) a description of how the company intends
to seek to address the unmet capital needs of the
smaller enterprises served;
‘‘(4) a proposal describing how the company in-
tends to use the grant funds provided under this part
to provide operational assistance to smaller enter-
prises financed by the company, including informa-
tion regarding whether the company has employees
with appropriate professional licenses or will contract
with another entity when the services of such an indi-
vidual are necessary;
‘‘(5) with respect to binding commitments to be
made to the company under this part, an estimate of
the ratio of cash to in-kind contributions;
‘‘(6) a description of whether and to what extent
the company meets the criteria under subsection
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(c)(2) and the objectives of the program established
under this part;
‘‘(7) information regarding the management and
financial strength of any parent firm, affiliated firm,
or any other firm essential to the success of the busi-
ness plan of the company; and
‘‘(8) such other information as the Administrator
may require.
‘‘(c) CONDITIONAL APPROVAL.—
‘‘(1) IN GENERAL.—From among companies sub-
mitting applications under subsection (b), the Admin-
istrator shall conditionally approve companies to op-
erate as Renewable Fuel Capital Investment compa-
nies.
‘‘(2) SELECTION
CRITERIA.—In conditionally
approving companies under paragraph (1), the Ad-
ministrator shall consider—
‘‘(A) the likelihood that the company will
meet the goal of its business plan;
‘‘(B) the experience and background of the
management team of the company;
‘‘(C) the need for venture capital invest-
ments in the geographic areas in which the com-
pany intends to invest;
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‘‘(D) the extent to which the company will
concentrate its activities on serving the geo-
graphic areas in which it intends to invest;
‘‘(E) the likelihood that the company will be
able to satisfy the conditions under subsection
(d);
‘‘(F) the extent to which the activities pro-
posed by the company will expand economic op-
portunities in the geographic areas in which the
company intends to invest;
‘‘(G) the strength of the proposal by the
company to provide operational assistance under
this part as the proposal relates to the ability of
the company to meet applicable cash require-
ments and properly use in-kind contributions,
including the use of resources for the services of
licensed professionals, when necessary, whether
provided by employees or contractors; and
‘‘(H) any other factor determined appro-
priate by the Administrator.
‘‘(3) NATIONWIDE DISTRIBUTION.—From among
companies submitting applications under subsection
(b), the Administrator shall consider the selection cri-
teria under paragraph (2) and shall, to the maximum
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extent practicable, approve at least one company from
each geographic region of the Administration.
‘‘(d) REQUIREMENTS TO BE MET FOR FINAL AP-
PROVAL.—
‘‘(1) IN
GENERAL.—The Administrator shall
grant each conditionally approved company 2 years
to satisfy the requirements of this subsection.
‘‘(2) 
CAPITAL
REQUIREMENT.—Each 
condi-
tionally approved company shall raise not less than
$3,000,000 of private capital or binding capital com-
mitments from 1 or more investors (which shall not
be departments or agencies of the Federal Govern-
ment) who meet criteria established by the Adminis-
trator.
‘‘(3) 
NONADMINISTRATION
RESOURCES
FOR
OPERATIONAL ASSISTANCE.—
‘‘(A) IN
GENERAL.—In order to provide
operational assistance to smaller enterprises ex-
pected to be financed by the company, each con-
ditionally approved company shall have binding
commitments (for contribution in cash or in-
kind)—
‘‘(i) from sources other than the Ad-
ministration that meet criteria established
by the Administrator; and
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‘‘(ii) payable or available over a
multiyear period determined appropriate by
the Administrator (not to exceed 10 years).
‘‘(B) EXCEPTION.—The Administrator may,
in the discretion of the Administrator and based
upon a showing of special circumstances and
good cause, consider an applicant to have satis-
fied the requirements of subparagraph (A) if the
applicant has—
‘‘(i) a viable plan that reasonably
projects the capacity of the applicant to
raise the amount (in cash or in-kind) re-
quired under subparagraph (A); and
‘‘(ii) binding commitments in an
amount equal to not less than 20 percent of
the total amount required under paragraph
(A).
‘‘(C) LIMITATION.—The total amount of a
in-kind contributions by a company shall be not
more than 50 percent of the total contributions
by a company.
‘‘(e) FINAL APPROVAL; DESIGNATION.—The Adminis-
trator shall, with respect to each applicant conditionally
approved under subsection (c)—
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‘‘(1) grant final approval to the applicant to op-
erate as a Renewable Fuel Capital Investment com-
pany under this part and designate the applicant as
such a company, if the applicant—
‘‘(A) satisfies the requirements of subsection
(d) on or before the expiration of the time period
described in that subsection; and
‘‘(B) enters into a participation agreement
with the Administrator; or
‘‘(2) if the applicant fails to satisfy the require-
ments of subsection (d) on or before the expiration of
the time period described in paragraph (1) of that
subsection, revoke the conditional approval granted
under that subsection.
‘‘SEC. 385. DEBENTURES.
‘‘(a) IN GENERAL.—The Administrator may guar-
antee the timely payment of principal and interest, as
scheduled, on debentures issued by any Renewable Fuel
Capital Investment company.
‘‘(b) TERMS
AND CONDITIONS.—The Administrator
may make guarantees under this section on such terms and
conditions as it determines appropriate, except that—
‘‘(1) the term of any debenture guaranteed under
this section shall not exceed 15 years; and
‘‘(2) a debenture guaranteed under this section—
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‘‘(A) shall carry no front-end or annual
fees;
‘‘(B) shall be issued at a discount;
‘‘(C) shall require no interest payments dur-
ing the 5-year period beginning on the date the
debenture is issued;
‘‘(D) shall be prepayable without penalty
after the end of the 1-year period beginning on
the date the debenture is issued; and
‘‘(E) shall require semiannual interest pay-
ments after the period described in subparagraph
(C).
‘‘(c) FULL FAITH
AND CREDIT
OF
THE UNITED
STATES.—The full faith and credit of the United States is
pledged to pay all amounts that may be required to be paid
under any guarantee under this part.
‘‘(d) MAXIMUM GUARANTEE.—
‘‘(1) IN GENERAL.—Under this section, the Ad-
ministrator may guarantee the debentures issued by
a Renewable Fuel Capital Investment company only
to the extent that the total face amount of outstanding
guaranteed debentures of such company does not ex-
ceed 150 percent of the private capital of the com-
pany, as determined by the Administrator.
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‘‘(2) 
TREATMENT
OF
CERTAIN
FEDERAL
FUNDS.—For the purposes of paragraph (1), private
capital shall include capital that is considered to be
Federal funds, if such capital is contributed by an in-
vestor other than a department or agency of the Fed-
eral Government.
‘‘SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFI-
CATES.
‘‘(a) ISSUANCE.—The Administrator may issue trust
certificates representing ownership of all or a fractional
part of debentures issued by a Renewable Fuel Capital In-
vestment company and guaranteed by the Administrator
under this part, if such certificates are based on and backed
by a trust or pool approved by the Administrator and com-
posed solely of guaranteed debentures.
‘‘(b) GUARANTEE.—
‘‘(1) IN
GENERAL.—The Administrator may,
under such terms and conditions as it determines ap-
propriate, guarantee the timely payment of the prin-
cipal of and interest on trust certificates issued by the
Administrator or its agents for purposes of this sec-
tion.
‘‘(2) LIMITATION.—Each guarantee under this
subsection shall be limited to the extent of principal
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and interest on the guaranteed debentures that com-
pose the trust or pool.
‘‘(3) PREPAYMENT OR DEFAULT.—If a debenture
in a trust or pool is prepaid, or in the event of de-
fault of such a debenture, the guarantee of timely
payment of principal and interest on the trust certifi-
cates shall be reduced in proportion to the amount of
principal and interest such prepaid debenture rep-
resents in the trust or pool. Interest on prepaid or de-
faulted debentures shall accrue and be guaranteed by
the Administrator only through the date of payment
of the guarantee. At any time during its term, a trust
certificate may be called for redemption due to pre-
payment or default of all debentures.
‘‘(c) FULL FAITH
AND CREDIT
OF
THE UNITED
STATES.—The full faith and credit of the United States is
pledged to pay all amounts that may be required to be paid
under any guarantee of a trust certificate issued by the Ad-
ministrator or its agents under this section.
‘‘(d) FEES.—The Administrator shall not collect a fee
for any guarantee of a trust certificate under this section,
but any agent of the Administrator may collect a fee ap-
proved by the Administrator for the functions described in
subsection (f)(2).
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—
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‘‘(1) SUBROGATION.—If the Administrator pays
a claim under a guarantee issued under this section,
it shall be subrogated fully to the rights satisfied by
such payment.
‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, or
local law shall preclude or limit the exercise by the
Administrator of its ownership rights in the deben-
tures residing in a trust or pool against which trust
certificates are issued under this section.
‘‘(f) MANAGEMENT AND ADMINISTRATION.—
‘‘(1) REGISTRATION.—The Administrator may
provide for a central registration of all trust certifi-
cates issued under this section.
‘‘(2) CONTRACTING OF FUNCTIONS.—
‘‘(A) IN
GENERAL.—The Administrator
may contract with an agent or agents to carry
out on behalf of the Administrator the pooling
and the central registration functions provided
for in this section, including, not withstanding
any other provision of law—
‘‘(i) maintenance, on behalf of and
under the direction of the Administrator, of
such commercial bank accounts or invest-
ments in obligations of the United States as
may be necessary to facilitate the creation
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of trusts or pools backed by debentures guar-
anteed under this part; and
‘‘(ii) the issuance of trust certificates to
facilitate the creation of such trusts or
pools.
‘‘(B) FIDELITY
BOND
OR
INSURANCE
RE-
QUIREMENT.—Any agent performing functions
on behalf of the Administrator under this para-
graph shall provide a fidelity bond or insurance
in such amounts as the Administrator deter-
mines to be necessary to fully protect the inter-
ests of the United States.
‘‘(3) REGULATION OF BROKERS AND DEALERS.—
The Administrator may regulate brokers and dealers
in trust certificates issued under this section.
‘‘(4) ELECTRONIC
REGISTRATION.—Nothing in
this subsection may be construed to prohibit the use
of a book-entry or other electronic form of registration
for trust certificates issued under this section.
‘‘SEC. 387. FEES.
‘‘(a) IN GENERAL.—Except as provided in section
386(d), the Administrator may charge such fees as it deter-
mines appropriate with respect to any guarantee or grant
issued under this part, in an amount established annually
by the Administrator, as necessary to reduce to zero the cost
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(as defined in section 502 of the Federal Credit Reform Act
of 1990) to the Administration of purchasing and guaran-
teeing debentures under this part, which amounts shall be
paid to and retained by the Administration.
‘‘(b) OFFSET.—The Administrator may, as provided
by section 388, offset fees charged and collected under sub-
section (a).
‘‘SEC. 388. FEE CONTRIBUTION.
‘‘(a) IN GENERAL.—To the extent that amounts are
made available to the Administrator for the purpose of fee
contributions, the Administrator shall contribute to fees
paid by the Renewable Fuel Capital Investment companies
under section 387.
‘‘(b) ANNUAL ADJUSTMENT.—Each fee contribution
under subsection (a) shall be effective for 1 fiscal year and
shall be adjusted as necessary for each fiscal year thereafter
to ensure that amounts under subsection (a) are fully used.
The fee contribution for a fiscal year shall be based on the
outstanding commitments made and the guarantees and
grants that the Administrator projects will be made during
that fiscal year, given the program level authorized by law
for that fiscal year and any other factors that the Adminis-
trator determines appropriate.
‘‘SEC. 389. OPERATIONAL ASSISTANCE GRANTS.
‘‘(a) IN GENERAL.—
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‘‘(1) 
AUTHORITY.—The 
Administrator 
may
make grants to Renewable Fuel Capital Investment
companies to provide operational assistance to small-
er enterprises financed, or expected to be financed, by
such companies or other entities.
‘‘(2) TERMS.—A grant under this subsection
shall be made over a multiyear period not to exceed
10 years, under such other terms as the Administrator
may require.
‘‘(3) GRANT AMOUNT.—The amount of a grant
made under this subsection to a Renewable Fuel Cap-
ital Investment company shall be equal to the lesser
of—
‘‘(A) 10 percent of the resources (in cash or
in kind) raised by the company under section
384(d)(2); or
‘‘(B) $1,000,000.
‘‘(4) PRO
RATA
REDUCTIONS.—If the amount
made available to carry out this section is insufficient
for the Administrator to provide grants in the
amounts provided for in paragraph (3), the Adminis-
trator shall make pro rata reductions in the amounts
otherwise payable to each company and entity under
such paragraph.
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‘‘(5) GRANTS TO CONDITIONALLY APPROVED COM-
PANIES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), upon the request of a com-
pany conditionally approved under section
384(c), the Administrator shall make a grant to
the company under this subsection.
‘‘(B) REPAYMENT BY COMPANIES NOT AP-
PROVED.—If a company receives a grant under
this paragraph and does not enter into a partici-
pation agreement for final approval, the com-
pany shall, subject to controlling Federal law,
repay the amount of the grant to the Adminis-
trator.
‘‘(C) DEDUCTION OF GRANT TO APPROVED
COMPANY.—If a company receives a grant under
this paragraph and receives final approval
under section 384(e), the Administrator shall de-
duct the amount of the grant from the total
grant amount the company receives for oper-
ational assistance.
‘‘(D) AMOUNT
OF
GRANT.—No company
may receive a grant of more than $100,000
under this paragraph.
‘‘(b) SUPPLEMENTAL GRANTS.—
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‘‘(1) IN
GENERAL.—The Administrator may
make supplemental grants to Renewable Fuel Capital
Investment companies and to other entities, as au-
thorized by this part, under such terms as the Admin-
istrator may require, to provide additional oper-
ational assistance to smaller enterprises financed, or
expected to be financed, by the companies.
‘‘(2) MATCHING REQUIREMENT.—The Adminis-
trator may require, as a condition of any supple-
mental grant made under this subsection, that the
company or entity receiving the grant provide from
resources (in a cash or in kind), other then those pro-
vided by the Administrator, a matching contribution
equal to the amount of the supplemental grant.
‘‘(c) LIMITATION.—None of the assistance made avail-
able under this section may be used for any overhead or
general and administrative expense of a Renewable Fuel
Capital Investment company.
‘‘SEC. 390. BANK PARTICIPATION.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), any national bank, any member bank of the Federal
Reserve System, and (to the extent permitted under applica-
ble State law) any insured bank that is not a member of
such system, may invest in any Renewable Fuel Capital
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Investment company, or in any entity established to invest
solely in Renewable Fuel Capital Investment companies.
‘‘(b) LIMITATION.—No bank described in subsection (a)
may make investments described in such subsection that are
greater than 5 percent of the capital and surplus of the
bank.
‘‘SEC. 391. FEDERAL FINANCING BANK.
‘‘Notwithstanding section 318, the Federal Financing
Bank may acquire a debenture issued by a Renewable Fuel
Capital Investment company under this part.
‘‘SEC. 392. REPORTING REQUIREMENT.
‘‘Each Renewable Fuel Capital Investment company
that participates in the program established under this part
shall provide to the Administrator such information as the
Administrator may require, including—
‘‘(1) information related to the measurement cri-
teria that the company proposed in its program ap-
plication; and
‘‘(2) in each case in which the company makes,
under this part, an investment in, or a loan or a
grant to, a business that is not primarily engaged in
the research, development, manufacture, or bringing
to market or renewable energy sources, a report on the
nature, origin, and revenues of the business in which
investments are made.
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‘‘SEC. 393. EXAMINATIONS.
‘‘(a) IN GENERAL.—Each Renewable Fuel Capital In-
vestment company that participates in the program estab-
lished under this part shall be subject to examinations made
at the direction of the Investment Division of the Adminis-
tration in accordance with this section.
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—
Examinations under this section may be conducted with the
assistance of a private sector entity that has both the quali-
fications and the expertise necessary to conduct such exami-
nations.
‘‘(c) COSTS.—
‘‘(1) ASSESSMENT.—
‘‘(A) IN
GENERAL.—The Administrator
may assess the cost of examinations under this
section, including compensation of the exam-
iners, against the company examined.
‘‘(B) PAYMENT.—Any company against
which the Administrator assesses costs under this
paragraph shall pay such costs.
‘‘(2) DEPOSIT OF FUNDS.—Funds collected under
this section shall be deposited in the account for sala-
ries and expenses of the Administration.
‘‘SEC. 394. MISCELLANEOUS.
‘‘To the extent such procedures are not inconsistent
with the requirements of this part, the Administrator may
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take such action as set forth in sections 309, 311, 312, and
314 and an officer, director, employee, agent, or other par-
ticipant in the management or conduct of the affairs of a
Renewable Fuel Capital Investment company shall be sub-
ject to the requirements of such sections.
‘‘SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR
OFFICERS.
‘‘Using the procedures for removing or suspending a
director or an officer of a licensee set forth in section 313
(to the extent such procedures are not inconsistent with the
requirements of this part), the Administrator may remove
or suspend any director or officer of any Renewable Fuel
Capital Investment company.
‘‘SEC. 396. REGULATIONS.
‘‘The Administrator may issue such regulations as the
Administrator determines necessary to carry out the provi-
sions of this part in accordance with its purposes.
‘‘SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—Subject to the availability of ap-
propriations, the Administrator is authorized to make
$15,000,000 in operational assistance grants under section
389 for each of fiscal years 2008 and 2009.
‘‘(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds
deposited under section 393(c)(2) are authorized to be ap-
propriated only for the costs of examinations under section
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393 and for the costs of other oversight activities with re-
spect to the program established under this part.
‘‘SEC. 398. TERMINATION.
‘‘The program under this part shall terminate at the
end of the second full fiscal year after the date that the Ad-
ministrator establishes the program under this part.’’.
SEC. 1208. STUDY AND REPORT.
The Administrator of the Small Business Administra-
tion shall conduct a study of the Renewable Fuel Capital
Investment Program under part C of title III of the Small
Business Investment Act of 1958, as added by this Act. Not
later than 3 years after the date of enactment of this Act,
the Administrator shall complete the study under this sec-
tion and submit to Congress a report regarding the results
of the study.
TITLE XIII—SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF
ELECTRICITY GRID.
It is the policy of the United States to support the
modernization of the Nation’s electricity transmission and
distribution system to maintain a reliable and secure elec-
tricity infrastructure that can meet future demand growth
and to achieve each of the following, which together charac-
terize a Smart Grid:
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(9) Development of standards for communication
and interoperability of appliances and equipment
connected to the electric grid, including the infra-
structure serving the grid.
(10) Identification and lowering of unreasonable
or unnecessary barriers to adoption of smart grid
technologies, practices, and services.
SEC. 1302. SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary
of the Office of Electricity Delivery and Energy Reliability
(referred to in this section as the ‘‘OEDER’’) and through
the Smart Grid Task Force established in section 1303,
shall, after consulting with any interested individual or en-
tity as appropriate, no later than one year after enactment,
and every two years thereafter, report to Congress con-
cerning the status of smart grid deployments nationwide
and any regulatory or government barriers to continued de-
ployment. The report shall provide the current status and
prospects of smart grid development, including information
on technology penetration, communications network capa-
bilities, costs, and obstacles. It may include recommenda-
tions for State and Federal policies or actions helpful to
facilitate the transition to a smart grid. To the extent ap-
propriate, it should take a regional perspective. In pre-
paring this report, the Secretary shall solicit advice and
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contributions from the Smart Grid Advisory Committee cre-
ated in section 1303; from other involved Federal agencies
including but not limited to the Federal Energy Regulatory
Commission (‘‘Commission’’), the National Institute of
Standards and Technology (‘‘Institute’’), and the Depart-
ment of Homeland Security; and from other stakeholder
groups not already represented on the Smart Grid Advisory
Committee.
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART
GRID TASK FORCE.
(a) SMART GRID ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish, within 90 days of enactment of this Part, a
Smart Grid Advisory Committee (either as an inde-
pendent entity or as a designated sub-part of a larger
advisory committee on electricity matters). The Smart
Grid Advisory Committee shall include eight or more
members appointed by the Secretary who have suffi-
cient experience and expertise to represent the full
range of smart grid technologies and services, to rep-
resent both private and non-Federal public sector
stakeholders. One member shall be appointed by the
Secretary to Chair the Smart Grid Advisory Com-
mittee.
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(2) MISSION.—The mission of the Smart Grid
Advisory Committee shall be to advise the Secretary,
the Assistant Secretary, and other relevant Federal of-
ficials concerning the development of smart grid tech-
nologies, the progress of a national transition to the
use of smart-grid technologies and services, the evo-
lution of widely-accepted technical and practical
standards and protocols to allow interoperability and
inter-communication among smart-grid capable de-
vices, and the optimum means of using Federal incen-
tive authority to encourage such progress.
(3) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act
(5 U.S.C. App.) shall apply to the Smart Grid Advi-
sory Committee.
(b) SMART GRID TASK FORCE.—
(1) ESTABLISHMENT.—The Assistant Secretary
of the Office of Electricity Delivery and Energy Reli-
ability shall establish, within 90 days of enactment of
this Part, a Smart Grid Task Force composed of des-
ignated employees from the various divisions of that
office who have responsibilities related to the transi-
tion to smart-grid technologies and practices. The As-
sistant Secretary or his designee shall be identified as
the Director of the Smart Grid Task Force. The
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Chairman of the Federal Energy Regulatory Commis-
sion and the Director of the National Institute of
Standards and Technology shall each designate at
least one employee to participate on the Smart Grid
Task Force. Other members may come from other
agencies at the invitation of the Assistant Secretary
or the nomination of the head of such other agency.
The Smart Grid Task Force shall, without disrupting
the work of the Divisions or Offices from which its
members are drawn, provide an identifiable Federal
entity to embody the Federal role in the national
transition toward development and use of smart grid
technologies.
(2) MISSION.—The mission of the Smart Grid
Task Force shall be to insure awareness, coordination
and integration of the diverse activities of the Office
and elsewhere in the Federal government related to
smart-grid technologies and practices, including but
not limited to: smart grid research and development;
development of widely accepted smart-grid standards
and protocols; the relationship of smart-grid tech-
nologies and practices to electric utility regulation;
the relationship of smart-grid technologies and prac-
tices to infrastructure development, system reliability
and security; and the relationship of smart-grid tech-
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nologies and practices to other facets of electricity
supply, demand, transmission, distribution, and pol-
icy. The Smart Grid Task Force shall collaborate
with the Smart Grid Advisory Committee and other
Federal agencies and offices. The Smart Grid Task
Force shall meet at the call of its Director as nec-
essary to accomplish its mission.
(c) AUTHORIZATION.—There are authorized to be ap-
propriated for the purposes of this section such sums as are
necessary to the Secretary to support the operations of the
Smart Grid Advisory Committee and Smart Grid Task
Force for each of fiscal years 2008 through 2020.
SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVEL-
OPMENT, AND DEMONSTRATION.
(a) POWER
GRID
DIGITAL
INFORMATION
TECH-
NOLOGY.—The Secretary, in consultation with the Federal
Energy Regulatory Commission and other appropriate
agencies, electric utilities, the States, and other stakeholders,
shall carry out a program—
(1) to develop advanced techniques for measuring
peak load reductions and energy-efficiency savings
from smart metering, demand response, distributed
generation, and electricity storage systems;
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(2) to investigate means for demand response,
distributed generation, and storage to provide ancil-
lary services;
(3) to conduct research to advance the use of
wide-area measurement and control networks, includ-
ing data mining, visualization, advanced computing,
and secure and dependable communications in a
highly-distributed environment;
(4) to test new reliability technologies, including
those concerning communications network capabili-
ties, in a grid control room environment against a
representative set of local outage and wide area black-
out scenarios;
(5) to identify communications network capacity
needed to implement advanced technologies.
(6) to investigate the feasibility of a transition
to time-of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric
transmission system software applications;
(8) to promote the use of underutilized electricity
generation capacity in any substitution of electricity
for liquid fuels in the transportation system of the
United States; and
(9) in consultation with the Federal Energy Reg-
ulatory Commission, to propose interconnection pro-
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tocols to enable electric utilities to access electricity
stored in vehicles to help meet peak demand loads.
(b) SMART GRID REGIONAL DEMONSTRATION INITIA-
TIVE.—
(1) IN GENERAL.—The Secretary shall establish
a smart grid regional demonstration initiative (re-
ferred to in this subsection as the ‘‘Initiative’’) com-
posed of demonstration projects specifically focused on
advanced technologies for use in power grid sensing,
communications, analysis, and power flow control.
The Secretary shall seek to leverage existing smart
grid deployments.
(2) GOALS.—The goals of the Initiative shall
be—
(A) to demonstrate the potential benefits of
concentrated investments in advanced grid tech-
nologies on a regional grid;
(B) to facilitate the commercial transition
from the current power transmission and dis-
tribution system technologies to advanced tech-
nologies;
(C) to facilitate the integration of advanced
technologies in existing electric networks to im-
prove system performance, power flow control,
and reliability;
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(D) to demonstrate protocols and standards
that allow for the measurement and validation of
the energy savings and fossil fuel emission reduc-
tions associated with the installation and use of
energy efficiency and demand response tech-
nologies and practices; and
(E) to investigate differences in each region
and regulatory environment regarding best prac-
tices in implementing smart grid technologies.
(3) DEMONSTRATION PROJECTS.—
(A) IN GENERAL.—In carrying out the ini-
tiative, the Secretary shall carry out smart grid
demonstration projects in up to 5 electricity con-
trol areas, including rural areas and at least 1
area in which the majority of generation and
transmission assets are controlled by a tax-ex-
empt entity.
(B) 
COOPERATION.—A 
demonstration
project under subparagraph (A) shall be carried
out in cooperation with the electric utility that
owns the grid facilities in the electricity control
area in which the demonstration project is car-
ried out.
(C) FEDERAL SHARE OF COST OF TECH-
NOLOGY INVESTMENTS.—The Secretary shall pro-
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vide to an electric utility described in subpara-
graph (B) financial assistance for use in paying
an amount equal to not more than 50 percent of
the cost of qualifying advanced grid technology
investments made by the electric utility to carry
out a demonstration project.
(D) INELIGIBILITY FOR GRANTS.—No per-
son or entity participating in any demonstra-
tion project conducted under this subsection shall
be eligible for grants under section 1306 for oth-
erwise qualifying investments made as part of
that demonstration project.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated—
(1) to carry out subsection (a), such sums as are
necessary for each of fiscal years 2008 through 2012;
and
(2) to carry out subsection (b), $100,000,000 for
each of fiscal years 2008 through 2012.
SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) INTEROPERABILITY FRAMEWORK.—The Director of
the National Institute of Standards and Technology shall
have primary responsibility to coordinate the development
of a framework that includes protocols and model standards
for information management to achieve interoperability of
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smart grid devices and systems. Such protocols and stand-
ards shall further align policy, business, and technology ap-
proaches in a manner that would enable all electric re-
sources, including demand-side resources, to contribute to
an efficient, reliable electricity network. In developing such
protocols and standards—
(1) the Director shall seek input and cooperation
from the Commission, OEDER and its Smart Grid
Task Force, the Smart Grid Advisory Committee,
other relevant Federal and State agencies; and
(2) the Director shall also solicit input and co-
operation from private entities interested in such pro-
tocols and standards, including but not limited to the
Gridwise Architecture Council, the International
Electrical and Electronics Engineers, the National
Electric Reliability Organization recognized by the
Federal Energy Regulatory Commission, and Na-
tional Electrical Manufacturer’s Association.
(b) SCOPE OF FRAMEWORK.—The framework devel-
oped under subsection (a) shall be flexible, uniform and
technology neutral, including but not limited to technologies
for managing smart grid information, and designed—
(1) to accommodate traditional, centralized gen-
eration and transmission resources and consumer dis-
tributed resources, including distributed generation,
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renewable generation, energy storage, energy effi-
ciency, and demand response and enabling devices
and systems;
(2) to be flexible to incorporate—
(A) regional and organizational differences;
and
(B) technological innovations;
(3) to consider the use of voluntary uniform
standards for certain classes of mass-produced electric
appliances and equipment for homes and businesses
that enable customers, at their election and consistent
with applicable State and Federal laws, and are
manufactured with the ability to respond to electric
grid emergencies and demand response signals by cur-
tailing all, or a portion of, the electrical power con-
sumed by the appliances or equipment in response to
an emergency or demand response signal, including
through—
(A) load reduction to reduce total electrical
demand;
(B) adjustment of load to provide grid an-
cillary services; and
(C) in the event of a reliability crisis that
threatens an outage, short-term load shedding to
help preserve the stability of the grid; and
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(4) such voluntary standards should incorporate
appropriate manufacturer lead time.
(c) TIMING OF FRAMEWORK DEVELOPMENT.—The In-
stitute shall begin work pursuant to this section within 60
days of enactment. The Institute shall provide and publish
an initial report on progress toward recommended or con-
sensus standards and protocols within one year after enact-
ment, further reports at such times as developments war-
rant in the judgment of the Institute, and a final report
when the Institute determines that the work is completed
or that a Federal role is no longer necessary.
(d) STANDARDS FOR INTEROPERABILITY IN FEDERAL
JURISDICTION.—At any time after the Institute’s work has
led to sufficient consensus in the Commission’s judgment,
the Commission shall institute a rulemaking proceeding to
adopt such standards and protocols as may be necessary
to insure smart-grid functionality and interoperability in
interstate transmission of electric power, and regional and
wholesale electricity markets.
(e) AUTHORIZATION.—There are authorized to be ap-
propriated for the purposes of this section $5,000,000 to the
Institute to support the activities required by this sub-
section for each of fiscal years 2008 through 2012.
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SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID IN-
VESTMENT COSTS.
(a) MATCHING FUND.—The Secretary shall establish
a Smart Grid Investment Matching Grant Program to pro-
vide reimbursement of one-fifth (20 percent) of qualifying
Smart Grid investments.
(b) QUALIFYING INVESTMENTS.—Qualifying Smart
Grid investments may include any of the following made
on or after the date of enactment of this Act:
(1) In the case of appliances covered for purposes
of establishing energy conservation standards under
part B of title III of the Energy Policy and Conserva-
tion Act of 1975 (42 U.S.C. 6291 et seq.), the docu-
mented expenditures incurred by a manufacturer of
such appliances associated with purchasing or design-
ing, creating the ability to manufacture, and manu-
facturing and installing for one calendar year, inter-
nal devices that allow the appliance to engage in
Smart Grid functions.
(2) In the case of specialized electricity-using
equipment, including motors and drivers, installed in
industrial or commercial applications, the docu-
mented expenditures incurred by its owner or its
manufacturer of installing devices or modifying that
equipment to engage in Smart Grid functions.
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(3) In the case of transmission and distribution
equipment fitted with monitoring and communica-
tions devices to enable smart grid functions, the docu-
mented expenditures incurred by the electric utility to
purchase and install such monitoring and commu-
nications devices.
(4) In the case of metering devices, sensors, con-
trol devices, and other devices integrated with and at-
tached to an electric utility system or retail dis-
tributor or marketer of electricity that are capable of
engaging in Smart Grid functions, the documented
expenditures incurred by the electric utility, dis-
tributor, or marketer and its customers to purchase
and install such devices.
(5) In the case of software that enables devices or
computers to engage in Smart Grid functions, the
documented purchase costs of the software.
(6) In the case of entities that operate or coordi-
nate operations of regional electric grids, the docu-
mented expenditures for purchasing and installing
such equipment that allows Smart Grid functions to
operate and be combined or coordinated among mul-
tiple electric utilities and between that region and
other regions.
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(7) In the case of persons or entities other than
electric utilities owning and operating a distributed
electricity generator, the documented expenditures of
enabling that generator to be monitored, controlled, or
otherwise integrated into grid operations and elec-
tricity flows on the grid utilizing Smart Grid func-
tions.
(8) In the case of electric or hybrid-electric vehi-
cles, the documented expenses for devices that allow
the vehicle to engage in Smart Grid functions (but
not the costs of electricity storage for the vehicle).
(9) The documented expenditures related to pur-
chasing and implementing Smart Grid functions in
such other cases as the Secretary shall identify. In
making such grants, the Secretary shall seek to re-
ward innovation and early adaptation, even if success
is not complete, rather than deployment of proven
and commercially viable technologies.
(c) INVESTMENTS NOT INCLUDED.—Qualifying Smart
Grid investments do not include any of the following:
(1) Investments or expenditures for Smart Grid
technologies, devices, or equipment that are eligible for
specific tax credits or deductions under the Internal
Revenue Code, as amended.
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(2) Expenditures for electricity generation,
transmission, or distribution infrastructure or equip-
ment not directly related to enabling Smart Grid
functions.
(3) After the final date for State consideration of
the Smart Grid Information Standard under section
1307 (paragraph (17) of section 111(d) of the Public
Utility Regulatory Policies Act of 1978), an invest-
ment that is not in compliance with such standard.
(4) After the development and publication by the
Institute of protocols and model standards for inter-
operability of smart grid devices and technologies, an
investment that fails to incorporate any of such pro-
tocols or model standards.
(5) Expenditures for physical interconnection of
generators or other devices to the grid except those
that are directly related to enabling Smart Grid func-
tions.
(6) Expenditures for ongoing salaries, benefits,
or personnel costs not incurred in the initial installa-
tion, training, or start up of smart grid functions.
(7) Expenditures for travel, lodging, meals or
other personal costs.
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(8) Ongoing or routine operation, billing, cus-
tomer relations, security, and maintenance expendi-
tures.
(9) Such other expenditures that the Secretary
determines not to be Qualifying Smart Grid Invest-
ments by reason of the lack of the ability to perform
Smart Grid functions or lack of direct relationship to
Smart Grid functions.
(d) SMART GRID FUNCTIONS.—The term ‘‘smart grid
functions’’ means any of the following:
(1) The ability to develop, store, send and receive
digital information concerning electricity use, costs,
prices, time of use, nature of use, storage, or other in-
formation relevant to device, grid, or utility oper-
ations, to or from or by means of the electric utility
system, through one or a combination of devices and
technologies.
(2) The ability to develop, store, send and receive
digital information concerning electricity use, costs,
prices, time of use, nature of use, storage, or other in-
formation relevant to device, grid, or utility oper-
ations to or from a computer or other control device.
(3) The ability to measure or monitor electricity
use as a function of time of day, power quality char-
acteristics such as voltage level, current, cycles per
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second, or source or type of generation and to store,
synthesize or report that information by digital
means.
(4) The ability to sense and localize disruptions
or changes in power flows on the grid and commu-
nicate such information instantaneously and auto-
matically for purposes of enabling automatic protec-
tive responses to sustain reliability and security of
grid operations.
(5) The ability to detect, prevent, communicate
with regard to, respond to, or recover from system se-
curity threats, including cyber-security threats and
terrorism, using digital information, media, and de-
vices.
(6) The ability of any appliance or machine to
respond to such signals, measurements, or commu-
nications automatically or in a manner programmed
by its owner or operator without independent human
intervention.
(7) The ability to use digital information to op-
erate functionalities on the electric utility grid that
were previously electro-mechanical or manual.
(8) The ability to use digital controls to manage
and modify electricity demand, enable congestion
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management, assist in voltage control, provide oper-
ating reserves, and provide frequency regulation.
(9) Such other functions as the Secretary may
identify as being necessary or useful to the operation
of a Smart Grid.
(e) The Secretary shall—
(1) establish and publish in the Federal Register,
within one year after the enactment of this Act proce-
dures by which applicants who have made qualifying
Smart Grid investments can seek and obtain reim-
bursement of one-fifth of their documented expendi-
tures;
(2) establish procedures to ensure that there is no
duplication or multiple reimbursement for the same
investment or costs, that the reimbursement goes to
the party making the actual expenditures for Quali-
fying Smart Grid Investments, and that the grants
made have significant effect in encouraging and fa-
cilitating the development of a smart grid;
(3) maintain public records of reimbursements
made, recipients, and qualifying Smart Grid invest-
ments which have received reimbursements;
(4) establish procedures to provide, in cases
deemed by the Secretary to be warranted, advance
payment of moneys up to the full amount of the pro-
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jected eventual reimbursement, to creditworthy appli-
cants whose ability to make Qualifying Smart Grid
Investments may be hindered by lack of initial cap-
ital, in lieu of any later reimbursement for which
that applicant qualifies, and subject to full return of
the advance payment in the event that the Qualifying
Smart Grid investment is not made; and
(5) have and exercise the discretion to deny
grants for investments that do not qualify in the rea-
sonable judgment of the Secretary.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums
as are necessary for the administration of this section and
the grants to be made pursuant to this section for fiscal
years 2008 through 2012.
SEC. 1307. STATE CONSIDERATION OF SMART GRID.
(a) 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:
‘‘(16) CONSIDERATION OF SMART GRID INVEST-
MENTS.—
‘‘(A) IN GENERAL.—Each State shall con-
sider requiring that, prior to undertaking invest-
ments in nonadvanced grid technologies, an elec-
tric utility of the State demonstrate to the State
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that the electric utility considered an investment
in a qualified smart grid system based on appro-
priate factors, including—
‘‘(i) total costs;
‘‘(ii) cost-effectiveness;
‘‘(iii) improved reliability;
‘‘(iv) security;
‘‘(v) system performance; and
‘‘(vi) societal benefit.
‘‘(B) RATE
RECOVERY.—Each State shall
consider authorizing each electric utility of the
State to recover from ratepayers any capital, op-
erating expenditure, or other costs of the electric
utility relating to the deployment of a qualified
smart grid system, including a reasonable rate of
return on the capital expenditures of the electric
utility for the deployment of the qualified smart
grid system.
‘‘(C) OBSOLETE EQUIPMENT.—Each State
shall consider authorizing any electric utility or
other party of the State to deploy a qualified
smart grid system to recover in a timely manner
the remaining book-value costs of any equipment
rendered obsolete by the deployment of the quali-
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fied smart grid system, based on the remaining
depreciable life of the obsolete equipment.
‘‘(17) SMART GRID INFORMATION.—
‘‘(A) STANDARD.—All electricity purchasers
shall be provided direct access, in written or elec-
tronic machine-readable form as appropriate, to
information from their electricity provider as
provided in subparagraph (B).
‘‘(B) INFORMATION.—Information provided
under this section, to the extent practicable, shall
include:
‘‘(i) PRICES.—Purchasers and other
interested persons shall be provided with in-
formation on—
‘‘(I) time-based electricity prices
in the wholesale electricity market; and
‘‘(II) time-based electricity retail
prices or rates that are available to the
purchasers.
‘‘(ii) USAGE.—Purchasers shall be pro-
vided with the number of electricity units,
expressed in kwh, purchased by them.
‘‘(iii) INTERVALS AND PROJECTIONS.—
Updates of information on prices and usage
shall be offered on not less than a daily
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basis, shall include hourly price and use in-
formation, where available, and shall in-
clude a day-ahead projection of such price
information to the extent available.
‘‘(iv) SOURCES.—Purchasers and other
interested persons shall be provided annu-
ally with written information on the sources
of the power provided by the utility, to the
extent it can be determined, by type of gen-
eration, including greenhouse gas emissions
associated with each type of generation, for
intervals during which such information is
available on a cost-effective basis.
‘‘(C) ACCESS.—Purchasers shall be able to
access their own information at any time
through the internet and on other means of com-
munication elected by that utility for Smart
Grid applications. Other interested persons shall
be able to access information not specific to any
purchaser through the Internet. Information spe-
cific to any purchaser shall be provided solely to
that purchaser.’’.
(b) COMPLIANCE.—
(1) TIME LIMITATIONS.—Section 112(b) of the
Public Utility Regulatory Policies Act of 1978 (16
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U.S.C. 2622(b)) is amended by adding the following
at the end thereof:
‘‘(6)(A) Not later than 1 year after the enact-
ment of this paragraph, each State regulatory author-
ity (with respect to each electric utility for which it
has ratemaking authority) and each nonregulated
utility shall commence the consideration referred to in
section 111, or set a hearing date for consideration,
with respect to the standards established by para-
graphs (17) through (18) of section 111(d).
‘‘(B) Not later than 2 years after the date of the
enactment of the this paragraph, each State regu-
latory authority (with respect to each electric utility
for which it has ratemaking authority), and each
nonregulated electric utility, shall complete the con-
sideration, and shall make the determination, referred
to in section 111 with respect to each standard estab-
lished by paragraphs (17) through (18) 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 following
at the end:
‘‘In the case of the standards established by paragraphs
(16) through (19) of section 111(d), the reference contained
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in this subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of such
paragraphs.’’.
(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 inserting ‘‘and para-
graphs (17) through (18)’’ before ‘‘of section 111(d)’’.
SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS
ON THE DEVELOPMENT OF COMBINED HEAT
AND POWER FACILITIES.
(a) STUDY.—
(1) IN GENERAL.—The Secretary, in consultation
with the States and other appropriate entities, shall
conduct a study of the laws (including regulations)
affecting the siting of privately owned electric dis-
tribution wires on and across public rights-of-way.
(2) REQUIREMENTS.—The study under para-
graph (1) shall include—
(A) an evaluation of—
(i) the purposes of the laws; and
(ii) the effect the laws have on the de-
velopment of combined heat and power fa-
cilities;
(B) a determination of whether a change in
the laws would have any operating, reliability,
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cost, or other impacts on electric utilities and the
customers of the electric utilities; and
(C) an assessment of—
(i) whether privately owned electric
distribution wires would result in duplica-
tive facilities; and
(ii) whether duplicative facilities are
necessary or desirable.
(b) REPORT.—Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Con-
gress a report that describes the results of the study con-
ducted under subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF
SMART GRID SYSTEMS.
(a) DOE STUDY.—The Secretary shall, within 18
months after the date of enactment of this Act, submit a
report to Congress that provides a quantitative assessment
and determination of the existing and potential impacts of
the deployment of Smart Grid systems on improving the
security of the Nation’s electricity infrastructure and oper-
ating capability. The report shall include but not be limited
to specific recommendations on each of the following:
(1) How smart grid systems can help in making
the Nation’s electricity system less vulnerable to dis-
ruptions due to intentional acts against the system.
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(2) How smart grid systems can help in restor-
ing the integrity of the Nation’s electricity system
subsequent to disruptions.
(3) How smart grid systems can facilitate na-
tionwide, interoperable emergency communications
and control of the Nation’s electricity system during
times of localized, regional, or nationwide emergency.
(4) What risks must be taken into account that
smart grid systems may, if not carefully created and
managed, create vulnerability to security threats of
any sort, and how such risks may be mitigated.
(b) CONSULTATION.—The Secretary shall consult with
other Federal agencies in the development of the report
under this section, including but not limited to the Sec-
retary of Homeland Security, the Federal Energy Regu-
latory Commission, and the Electric Reliability Organiza-
tion certified by the Commission under section 215(c) of
the Federal Power Act (16 U.S.C. 824o) as added by section
1211 of the Energy Policy Act of 2005 (Public Law 109–
58; 119 Stat. 941).
TITLE XIV—POOL AND SPA
SAFETY
SEC. 1401. SHORT TITLE.
This title may be cited as the ‘‘Virginia Graeme Baker
Pool and Spa Safety Act’’.
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SEC. 1402. FINDINGS.
Congress finds the following:
(1) Of injury-related deaths, drowning is the sec-
ond leading cause of death in children aged 1 to 14
in the United States.
(2) In 2004, 761 children aged 14 and under
died as a result of unintentional drowning.
(3) Adult supervision at all aquatic venues is a
critical safety factor in preventing children from
drowning.
(4) Research studies show that the installation
and proper use of barriers or fencing, as well as addi-
tional layers of protection, could substantially reduce
the number of childhood residential swimming pool
drownings and near drownings.
SEC. 1403. DEFINITIONS.
In this title:
(1) ASME/ANSI.—The term ‘‘ASME/ANSI’’ as
applied to a safety standard means such a standard
that is accredited by the American National Stand-
ards Institute and published by the American Society
of Mechanical Engineers.
(2) BARRIER.—The term ‘‘barrier’’ includes a
natural or constructed topographical feature that pre-
vents unpermitted access by children to a swimming
pool, and, with respect to a hot tub, a lockable cover.
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(3) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Consumer Product Safety Commission.
(4) MAIN
DRAIN.—The term ‘‘main drain’’
means a submerged suction outlet typically located at
the bottom of a pool or spa to conduct water to a re-
circulating pump.
(5) SAFETY
VACUUM
RELEASE
SYSTEM.—The
term ‘‘safety vacuum release system’’ means a vacuum
release system capable of providing vacuum release at
a suction outlet caused by a high vacuum occurrence
due to a suction outlet flow blockage.
(6) SWIMMING
POOL; SPA.—The term ‘‘swim-
ming pool’’ or ‘‘spa’’ means any outdoor or indoor
structure intended for swimming or recreational bath-
ing, including in-ground and above-ground struc-
tures, and includes hot tubs, spas, portable spas, and
non-portable wading pools.
(7) 
UNBLOCKABLE
DRAIN.—The 
term
‘‘unblockable drain’’ means a drain of any size and
shape that a human body cannot sufficiently block to
create a suction entrapment hazard.
SEC. 1404. FEDERAL SWIMMING POOL AND SPA DRAIN
COVER STANDARD.
(a) CONSUMER PRODUCT SAFETY RULE.—The re-
quirements described in subsection (b) shall be treated as