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(I) the unique processes and fa-
cilities of the sectors;
(II) the energy utilization require-
ments of the sectors; and
(III) the application of new, more
energy efficient technologies; and
(ii) conduct energy savings assess-
ments;
(C) the incorporation of technologies and
innovations that would significantly improve the
energy efficiency and utilization of energy-inten-
sive commercial applications; and
(D) any other activities that the Secretary
determines to be appropriate.
(3) PROPOSALS.—
(A) IN GENERAL.—To be eligible for finan-
cial assistance under this subsection, a partner-
ship shall submit to the Secretary a proposal
that describes the proposed research, develop-
ment, or demonstration activity to be conducted
by the partnership.
(B) REVIEW.—After reviewing the scientific,
technical, and commercial merit of a proposals
submitted under subparagraph (A), the Secretary
shall approve or disapprove the proposal.
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(C) COMPETITIVE AWARDS.—The provision
of financial assistance under this subsection shall
be on a competitive basis.
(4) COST-SHARING REQUIREMENT.—In carrying
out this section, the Secretary shall require cost shar-
ing in accordance with section 988 of the Energy Pol-
icy Act of 2005 (42 U.S.C. 16352).
(d) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary to carry out this section—
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal
year 2013 and each fiscal year thereafter.
(2) PARTNERSHIP ACTIVITIES.—Of the amounts
made available under paragraph (1), not less than 50
percent shall be used to pay the Federal share of part-
nership activities under subsection (c).
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Subtitle C—Promoting High Effi-
ciency Vehicles, Advanced Bat-
teries, and Energy Storage
SEC. 241. LIGHTWEIGHT MATERIALS RESEARCH AND DE-
VELOPMENT.
(a) IN GENERAL.—As soon as practicable after the
date of enactment of this Act, the Secretary shall establish
a research and development program to determine ways in
which—
(1) the weight of vehicles may be reduced to im-
prove fuel efficiency without compromising passenger
safety; and
(2) the cost of lightweight materials (such as steel
alloys, fiberglass, and carbon composites) required for
the construction of lighter-weight vehicles may be re-
duced.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$60,000,000 for each of fiscal years 2007 through 2012.
SEC. 242. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTO-
MOBILE PARTS MANUFACTURERS.
(a) IN GENERAL.—Section 712(a) of the Energy Pol-
icy Act of 2005 (42 U.S.C. 16062(a)) is amended in the
second sentence by striking ‘‘grants to automobile manufac-
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turers’’ and inserting ‘‘grants and loan guarantees under
section 1703 to automobile manufacturers and suppliers’’.
(b) CONFORMING AMENDMENT.—Section 1703(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is
amended by striking paragraph (8) and inserting the fol-
lowing:
‘‘(8) Production facilities for the manufacture of
fuel efficient vehicles or parts of those vehicles, includ-
ing electric drive vehicles and advanced diesel vehi-
cles.’’.
SEC. 243. ADVANCED TECHNOLOGY VEHICLES MANUFAC-
TURING INCENTIVE PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ADJUSTED AVERAGE FUEL ECONOMY.—The
term ‘‘adjusted average fuel economy’’ means the aver-
age fuel economy of a manufacturer for all light duty
vehicles produced by the manufacturer, adjusted such
that the fuel economy of each vehicle that qualifies for
an award shall be considered to be equal to the aver-
age fuel economy for vehicles of a similar footprint for
model year 2005.
(2) ADVANCED
TECHNOLOGY
VEHICLE.—The
term ‘‘advanced technology vehicle’’ means a light
duty vehicle that meets—
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(A) the Bin 5 Tier II emission standard es-
tablished in regulations issued by the Adminis-
trator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)), or a lower-numbered Bin emis-
sion standard;
(B) any new emission standard for fine
particulate matter prescribed by the Adminis-
trator under that Act (42 U.S.C. 7401 et seq.);
and
(C) at least 125 percent of the average base
year combined fuel economy, calculated on an
energy-equivalent basis, for vehicles of a substan-
tially similar footprint.
(3) COMBINED FUEL ECONOMY.—The term ‘‘com-
bined fuel economy’’ means—
(A) the combined city/highway miles per
gallon values, as reported in accordance with sec-
tion 32908 of title 49, United States Code; and
(B) in the case of an electric drive vehicle
with the ability to recharge from an off-board
source, the reported mileage, as determined in a
manner consistent with the Society of Auto-
motive Engineers recommended practice for that
configuration or a similar practice recommended
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by the Secretary, using a petroleum equivalence
factor for the off-board electricity (as defined in
section 474 of title 10, Code of Federal Regula-
tions).
(4) ENGINEERING
INTEGRATION
COSTS.—The
term ‘‘engineering integration costs’’ includes the cost
of engineering tasks relating to—
(A) incorporating qualifying components
into the design of advanced technology vehicles;
and
(B) designing new tooling and equipment
and developing new manufacturing processes
and material suppliers for production facilities
that produce qualifying components or advanced
technology vehicles.
(5) 
QUALIFYING
COMPONENTS.—The 
term
‘‘qualifying components’’ means components that the
Secretary determines to be—
(A) specially designed for advanced tech-
nology vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.
(b) ADVANCED VEHICLES MANUFACTURING FACIL-
ITY.—The Secretary shall provide facility funding awards
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under this section to automobile manufacturers and compo-
nent suppliers to pay not more than 30 percent of the cost
of—
(1) reequipping, expanding, or establishing a
manufacturing facility in the United States to
produce—
(A) qualifying advanced technology vehicles;
or
(B) qualifying components; and
(2) engineering integration performed in the
United States of qualifying vehicles and qualifying
components.
(c) PERIOD OF AVAILABILITY.—An award under sub-
section (b) shall apply to—
(1) facilities and equipment placed in service be-
fore December 30, 2017; and
(2) engineering integration costs incurred during
the period beginning on the date of enactment of this
Act and ending on December 30, 2017.
(d) IMPROVEMENT.—The Secretary shall issue regula-
tions that require that, in order for an automobile manufac-
turer to be eligible for an award under this section during
a particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the manu-
facturer during the most recent year for which data are
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available shall be not less than the average fuel economy
for all light duty vehicles of the manufacturer for model
year 2005.
(e) SET ASIDE FOR SMALL AUTOMOBILE MANUFAC-
TURERS AND COMPONENT SUPPLIERS.—
(1) DEFINITION OF COVERED FIRM.—In this sub-
section, the term ‘‘covered firm’’ means a firm that—
(A) employs less than 500 individuals; and
(B) manufactures automobiles or compo-
nents of automobiles.
(2) SET ASIDE.—Of the amount of funds that
are used to provide awards for each fiscal year under
this section, the Secretary shall use not less than 30
percent of the amount to provide awards to covered
firms or consortia led by a covered firm.
SEC. 244. ENERGY STORAGE COMPETITIVENESS.
(a) SHORT TITLE.—This section may be cited as the
‘‘United States Energy Storage Competitiveness Act of
2007’’.
(b) ENERGY STORAGE SYSTEMS FOR MOTOR TRANS-
PORTATION
AND ELECTRICITY TRANSMISSION
AND DIS-
TRIBUTION.—
(1) DEFINITIONS.—In this subsection:
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(A) COUNCIL.—The term ‘‘Council’’ means
the Energy Storage Advisory Council established
under paragraph (3).
(B) COMPRESSED AIR ENERGY STORAGE.—
The term ‘‘compressed air energy storage’’
means, in the case of an electricity grid applica-
tion, the storage of energy through the compres-
sion of air.
(C) DEPARTMENT.—The term ‘‘Depart-
ment’’ means the Department of Energy.
(D) 
FLYWHEEL.—The 
term 
‘‘flywheel’’
means, in the case of an electricity grid applica-
tion, a device used to store rotational kinetic en-
ergy.
(E) 
ULTRACAPACITOR.—The 
term
‘‘ultracapacitor’’ means an energy storage device
that has a power density comparable to conven-
tional capacitors but capable of exceeding the en-
ergy density of conventional capacitors by sev-
eral orders of magnitude.
(2) PROGRAM.—The Secretary shall carry out a
research, development, and demonstration program to
support the ability of the United States to remain
globally competitive in energy storage systems for
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motor transportation and electricity transmission
and distribution.
(3) ENERGY STORAGE ADVISORY COUNCIL.—
(A) ESTABLISHMENT.—Not later than 90
days after the date of enactment of this Act, the
Secretary shall establish an Energy Storage Ad-
visory Council.
(B) COMPOSITION.—
(i) IN
GENERAL.—Subject to clause
(ii), the Council shall consist of not less
than 15 individuals appointed by the Sec-
retary, based on recommendations of the
National Academy of Sciences.
(ii) ENERGY STORAGE INDUSTRY.—The
Council shall consist primarily of represent-
atives of the energy storage industry of the
United States.
(iii) CHAIRPERSON.—The Secretary
shall select a Chairperson for the Council
from among the members appointed under
clause (i).
(C) MEETINGS.—
(i) IN
GENERAL.—The Council shall
meet not less than once a year.
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(ii) FEDERAL
ADVISORY
COMMITTEE
ACT.—The Federal Advisory Committee Act
(5 U.S.C. App. 2) shall apply to a meeting
of the Council.
(D) PLANS.—No later than 1 year after the
date of enactment of this Act, in conjunction
with the Secretary, the Council shall develop 5-
year plans for integrating basic and applied re-
search so that the United States retains a glob-
ally competitive domestic energy storage indus-
try for motor transportation and electricity
transmission and distribution.
(E) REVIEW.—The Council shall—
(i) assess the performance of the De-
partment in meeting the goals of the plans
developed under subparagraph (D); and
(ii) make specific recommendations to
the Secretary on programs or activities that
should be established or terminated to meet
those goals.
(4) BASIC RESEARCH PROGRAM.—
(A) BASIC RESEARCH.—The Secretary shall
conduct a basic research program on energy stor-
age systems to support motor transportation and
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electricity 
transmission 
and 
distribution,
including—
(i) materials design;
(ii) materials synthesis and character-
ization;
(iii) electrode-active materials, includ-
ing electrolytes and bioelectrolytes;
(iv) surface and interface dynamics;
(v) modeling and simulation; and
(vi) thermal behavior and life degrada-
tion mechanisms; and
(vii) thermal behavior and life deg-
radation mechanisms.
(B) NANOSCIENCE
CENTERS.—The Sec-
retary, in cooperation with the Council, shall co-
ordinate the activities of the nanoscience centers
of the Department to help the nanoscience centers
of the Department maintain a globally competi-
tive posture in energy storage systems for motor
transportation and electricity transmission and
distribution.
(5) APPLIED
RESEARCH
PROGRAM.—The Sec-
retary shall conduct an applied research program on
energy storage systems to support motor transpor-
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tation and electricity transmission and distribution
technologies, including—
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including
flow batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy
storage systems; and
(G) thermal management systems.
(6) ENERGY STORAGE RESEARCH CENTERS.—
(A) IN GENERAL.—The Secretary shall es-
tablish, through competitive bids, not more than
4 energy storage research centers to translate
basic research into applied technologies to ad-
vance the capability of the United States to
maintain a globally competitive posture in en-
ergy storage systems for motor transportation
and electricity transmission and distribution.
(B) PROGRAM MANAGEMENT.—The centers
shall be jointly managed by the Under Secretary
for Science of the Department.
(C) PARTICIPATION
AGREEMENTS.—As a
condition of participating in a center, a partici-
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pant shall enter into a participation agreement
with the center that requires that activities con-
ducted by the participant for the center promote
the goal of enabling the United States to compete
successfully in global energy storage markets.
(D) PLANS.—A center shall conduct activi-
ties that promote the achievement of the goals of
the plans of the Council under paragraph (3)(D).
(E) COST SHARING.—In carrying out this
paragraph, the Secretary shall require cost-shar-
ing in accordance with section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352).
(F) NATIONAL LABORATORIES.—A national
laboratory (as defined in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801)) may par-
ticipate in a center established under this para-
graph, including a cooperative research and de-
velopment agreement (as defined in section 12(d)
of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710a(d))).
(7) DISCLOSURE.—Section 623 of the Energy
Policy Act of 1992 (42 U.S.C. 13293) may apply to
any project carried out through a grant, contract, or
cooperative agreement under this section.
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(8) INTELLECTUAL
PROPERTY.—In accordance
with section 202(a)(ii) of title 35, United States Code,
section 152 of the Atomic Energy Act of 1954 (42
U.S.C. 2182), and section 9 of the Federal Nonnuclear
Research and Development Act of 1974 (42 U.S.C.
5908), the Secretary may require, for any new inven-
tion developed under paragraph (6)—
(A) that any industrial participant that is
active in a Energy Storage Research Center es-
tablished under paragraph (6) related to the ad-
vancement of energy storage technologies carried
out, in whole or in part, with Federal funding,
be granted the first option to negotiate with the
invention owner, at least in the field of energy
storage technologies, nonexclusive licenses and
royalties on terms that are reasonable, as deter-
mined by the Secretary;
(B) that, during a 2-year period beginning
on the date on which an invention is made, the
patent holder shall not negotiate any license or
royalty agreement with any entity that is not an
industrial participant under paragraph (6);
(C) that, during the 2-year period described
in subparagraph (B), the patent holder shall ne-
gotiate nonexclusive licenses and royalties in
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good faith with any interested industrial partici-
pant under paragraph (6); and
(D) such other terms as the Secretary deter-
mines to be necessary to promote the accelerated
commercialization of inventions made under
paragraph (6) to advance the capability of the
United States to successfully compete in global
energy storage markets.
(9) 
REVIEW
BY
NATIONAL
ACADEMY
OF
SCIENCES.—Not later than 3 years after the date of
enactment of this Act, the Secretary shall offer to
enter into an arrangement with the National Acad-
emy of Sciences to assess the performance of the De-
partment in carrying out this section.
(10) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry
out—
(A) the basic research program under para-
graph (4) $50,000,000 for each of fiscal years
2008 through 2017;
(B) the applied research program under
paragraph (5) $80,000,000 for each of fiscal
years 2008 through 2017; and;
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(C) the energy storage research center pro-
gram under paragraph (6) $100,000,000 for each
of fiscal years 2008 through 2017.
SEC. 245. ADVANCED TRANSPORTATION TECHNOLOGY PRO-
GRAM.
(a) ELECTRIC DRIVE VEHICLE DEMONSTRATION PRO-
GRAM.—
(1) DEFINITIONS.—In this subsection—
(A) BATTERY.—The term ‘‘battery’’ means
an electrochemical energy storage device powered
directly by electrical current.
(B) PLUG-IN ELECTRIC DRIVE VEHICLE.—
The term ‘‘plug-in electric drive vehicle’’ means
a precommercial vehicle that—
(i) draws motive power from a battery
with a capacity of at least 4 kilowatt-hours;
(ii) can be recharged from an external
source of electricity for motive power; and
(iii) is a light-, medium-, or heavy-
duty onroad or nonroad vehicle.
(2) PROGRAM.—The Secretary shall establish a
competitive program to provide grants for demonstra-
tions of plug-in electric drive vehicles.
(3) ELIGIBILITY.—
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(A) IN
GENERAL.—A State government,
local government, metropolitan transportation
authority, air pollution control district, private
entity, and nonprofit entity shall be eligible to
receive a grant under this subsection.
(B) CERTAIN APPLICANTS.—A battery man-
ufacturer that proposes to supply to an appli-
cant for a grant under this section a battery
with a capacity of greater than 1 kilowatt-hour
for use in a plug-in electric drive vehicle shall—
(i) ensure that the applicant includes
in the application a description of the price
of the battery per kilowatt-hour;
(ii) on approval by the Secretary of the
application, publish, or permit the Sec-
retary to publish, the price described in
clause (i); and
(iii) for any order received by the bat-
tery manufacturer for at least 1,000 bat-
teries, offer the batteries at that price.
(4) PRIORITY.—In making grants under this
subsection, the Secretary shall give priority to pro-
posals that—
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(A) are likely to contribute to the commer-
cialization and production of plug-in electric
drive vehicles in the United States; and
(B) reduce petroleum usage.
(5) SCOPE OF DEMONSTRATIONS.—The Secretary
shall ensure, to the extent practicable, that the pro-
gram established under this subsection includes a va-
riety of applications, manufacturers, and end-uses.
(6) REPORTING.—The Secretary shall require a
grant recipient under this subsection to submit to the
Secretary, on an annual basis, data relating to vehi-
cle, performance, life cycle costs, and emissions of ve-
hicles demonstrated under the grant, including emis-
sions of greenhouse gases.
(7) COST SHARING.—Section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352) shall apply to
a grant made under this subsection.
(8) AUTHORIZATIONS
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection $60,000,000 for each of fiscal years
2008 
through 
2012, 
of 
which 
not 
less 
than
$20,000,000 shall be available each fiscal year only to
make grants local and municipal governments.
(b) NEAR-TERM ELECTRIC DRIVE TRANSPORTATION
DEPLOYMENT PROGRAM.—
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(1) DEFINITION OF QUALIFIED ELECTRIC TRANS-
PORTATION PROJECT.—
(A) IN GENERAL.—In this subsection, the
term ‘‘qualified electric transportation project’’
means a project that would simultaneously re-
duce emissions of criteria pollutants, greenhouse
gas emissions, and petroleum usage by at least
40 percent as compared to commercially avail-
able, petroleum-based technologies.
(B) INCLUSIONS.—In this subsection, the
term ‘‘qualified electric transportation project’’
includes a project relating to—
(i) shipside or shoreside electrification
for vessels;
(ii) truck-stop electrification;
(iii) electric truck refrigeration units;
(iv) battery powered auxiliary power
units for trucks;
(v) electric airport ground support
equipment;
(vi) electric material and cargo han-
dling equipment;
(vii) electric or dual-mode electric
freight rail;
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(viii) any distribution upgrades needed
to supply electricity to the project; and
(ix) any ancillary infrastructure, in-
cluding panel upgrades, battery chargers,
in-situ transformers, and trenching.
(2) ESTABLISHMENT.—Not later than 1 year
after the date of enactment of this Act, the Secretary,
in consultation with the Secretary of Transportation
and the Administrator of the Environmental Protec-
tion Agency, shall establish a program to provide
grants and loans to eligible entities for the conduct of
qualified electric transportation projects.
(3) GRANTS.—
(A) IN
GENERAL.—Of the amounts made
available for grants under paragraph (2)—
(i) 2⁄3 shall be made available by the
Secretary on a competitive basis for quali-
fied electric transportation projects based on
the overall cost-effectiveness of a qualified
electric transportation project in reducing
emissions of criteria pollutants, emissions of
greenhouse gases, and petroleum usage; and
(ii) 1⁄3 shall be made available by the
Secretary for qualified electric transpor-
tation projects in the order that the grant
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applications are received, if the qualified
electric transportation projects meet the
minimum standard for the reduction of
emissions of criteria pollutants, emissions of
greenhouse gases, and petroleum usage de-
scribed in paragraph (1)(A).
(B) PRIORITY.—In providing grants under
this paragraph, the Secretary shall give priority
to large-scale projects and large-scale aggregators
of projects.
(C) COST SHARING.—Section 988 of the En-
ergy Policy Act of 2005 (42 U.S.C. 16352) shall
apply to a grant made under this paragraph.
(4) REVOLVING LOAN PROGRAM.—
(A) IN GENERAL.—The Secretary shall es-
tablish a revolving loan program to provide
loans to eligible entities for the conduct of quali-
fied electric transportation projects under para-
graph (2).
(B) CRITERIA.—The Secretary shall estab-
lish criteria for the provision of loans under this
paragraph.
(C) FUNDING.—Of amounts made available
to carry out this subsection, the Secretary shall
use any amounts not used to provide grants
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under paragraph (3) to carry out the revolving
loan program under this paragraph.
(c) MARKET ASSESSMENT PROGRAM.—The Adminis-
trator of the Environmental Protection Agency, in consulta-
tion with the Secretary and private industry, shall carry
out a program—
(1) to inventory and analyze existing electric
drive transportation technologies and hybrid tech-
nologies and markets; and
(2) to identify and implement methods of remov-
ing barriers for existing and emerging applications of
electric drive transportation technologies and hybrid
transportation technologies.
(d) ELECTRICITY USAGE PROGRAM.—
(1) IN GENERAL.—The Secretary, in consultation
with the Administrator of the Environmental Protec-
tion Agency and private industry, shall carry out a
program—
(A) to work with utilities to develop low-
cost, simple methods of—
(i) using off-peak electricity; or
(ii) managing on-peak electricity use;
(B) to develop systems and processes—
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(i) to enable plug-in electric vehicles to
enhance the availability of emergency back-
up power for consumers;
(ii) to study and demonstrate the po-
tential value to the electric grid to use the
energy stored in the on-board storage sys-
tems to improve the efficiency and reli-
ability of the grid generation system; and
(iii) to work with utilities and other
interested stakeholders to study and dem-
onstrate the implications of the introduction
of plug-in electric vehicles and other types
of electric transportation on the production
of electricity from renewable resources.
(2) OFF-PEAK ELECTRICITY USAGE GRANTS.—In
carrying out the program under paragraph (1), the
Secretary shall provide grants to assist eligible public
and private electric utilities for the conduct of pro-
grams or activities to encourage owners of electric
drive transportation technologies—
(A) to use off-peak electricity; or
(B) to have the load managed by the utility.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out subsections (b),
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(c), and (d) $125,000,000 for each of fiscal years 2008
through 2013.
(f) 
ELECTRIC
DRIVE
TRANSPORTATION
TECH-
NOLOGIES.—
(1) DEFINITIONS.—In this subsection:
(A) BATTERY.—The term ‘‘battery’’ means
an electrochemical energy storage device powered
directly by electrical current.
(B) 
ELECTRIC
DRIVE
TRANSPORTATION
TECHNOLOGY.—The term ‘‘electric drive trans-
portation technology’’ means—
(i) technology used in vehicles that use
an electric motor for all or part of the mo-
tive power of the vehicles, including battery
electric, hybrid electric, plug-in hybrid elec-
tric, fuel cell, and plug-in fuel cell vehicles,
or rail transportation; or
(ii) equipment relating to transpor-
tation or mobile sources of air pollution
that use an electric motor to replace an in-
ternal combustion engine for all or part of
the work of the equipment, including—
(I) 
corded 
electric 
equipment
linked to transportation or mobile
sources of air pollution; and
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(II) electrification technologies at
airports, ports, truck stops, and mate-
rial-handling facilities.
(C) ENERGY STORAGE DEVICE.—
(i) IN
GENERAL.—The term ‘‘energy
storage device’’ means the onboard device
used in an on-road or nonroad vehicle to
store energy, or a battery, ultracapacitor,
compressed air energy storage system, or
flywheel used to store energy in a stationary
application.
(ii) INCLUSIONS.—The term ‘‘energy
storage device’’ includes—
(I) in the case of an electric or
hybrid electric or fuel cell vehicle, a
battery, ultracapacitor, or similar de-
vice; and
(II) in the case of a hybrid hy-
draulic vehicle, an accumulator or
similar device.
(D) ENGINE DOMINANT HYBRID VEHICLE.—
The term ‘‘engine dominant hybrid vehicle’’
means an on-road or nonroad vehicle that—
(i) is propelled by an internal combus-
tion engine or heat engine using—
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(I) any combustible fuel; and
(II) an on-board, rechargeable en-
ergy storage device; and
(ii) has no means of using an off-board
source of energy.
(E) 
NONROAD
VEHICLE.—The 
term
‘‘nonroad vehicle’’ means a vehicle—
(i) powered by—
(I) a nonroad engine, as that term
is defined in section 216 of the Clean
Air Act (42 U.S.C. 7550); or
(II) fully or partially by an elec-
tric motor powered by a fuel cell, a
battery, or an off-board source of elec-
tricity; and
(ii) that is not a motor vehicle or a ve-
hicle used solely for competition.
(F) PLUG-IN ELECTRIC DRIVE VEHICLE.—
In this section, the term ‘‘plug-in electric drive
vehicle’’ means a precommercial vehicle that—
(i) draws motive power from a battery
with a capacity of at least 4 kilowatt-hours;
(ii) can be recharged from an external
source of electricity for motive power; and
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(iii) is a light-, medium-, or heavy-
duty onroad or nonroad vehicle.
(2) EVALUATION OF PLUG-IN ELECTRIC DRIVE
TRANSPORTATION TECHNOLOGY BENEFITS.—
(A) IN
GENERAL.—The Secretary, in co-
operation with the Administrator of the Envi-
ronmental Protection Agency, the heads of other
appropriate Federal agencies, and appropriate
interested stakeholders, shall evaluate and, as ap-
propriate, modify existing test protocols for fuel
economy and emissions to ensure that any proto-
cols for electric drive transportation technologies,
including plug-in electric drive vehicles, accu-
rately measure the fuel economy and emissions
performance of the electric drive transportation
technologies.
(B) REQUIREMENTS.—Test protocols (in-
cluding any modifications to test protocols) for
electric drive transportation technologies under
subparagraph (A) shall—
(i) be designed to assess the full poten-
tial of benefits in terms of reduction of
emissions of criteria pollutants, reduction of
energy use, and petroleum reduction; and
(ii) consider—
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(I) the vehicle and fuel as a sys-
tem, not just an engine;
(II) nightly off-board charging, as
applicable; and
(III) 
different 
engine-turn 
on
speed control strategies.
(3) PLUG-IN
ELECTRIC
DRIVE
VEHICLE
RE-
SEARCH
AND
DEVELOPMENT.—The Secretary shall
conduct an applied research program for plug-in elec-
tric drive vehicle technology and engine dominant hy-
brid vehicle technology, including—
(A) high-capacity, high-efficiency energy
storage devices that, as compared to existing
technologies that are in commercial service, have
improved life, energy storage capacity, and
power delivery capacity;
(B) high-efficiency on-board and off-board
charging components;
(C) 
high-power 
and 
energy-efficient
drivetrain systems for passenger and commercial
vehicles and for nonroad vehicles;
(D) development and integration of control
systems and power trains for plug-in electric ve-
hicles, plug-in hybrid fuel cell vehicles, and en-
gine dominant hybrid vehicles, including—
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(i) development of efficient cooling sys-
tems;
(ii) analysis and development of con-
trol systems that minimize the emissions
profile in cases in which clean diesel en-
gines are part of a plug-in hybrid drive sys-
tem; and
(iii) development of different control
systems that optimize for different goals,
including—
(I) prolonging energy storage de-
vice life;
(II) reduction of petroleum con-
sumption; and
(III) reduction of greenhouse gas
emissions;
(E) application of nanomaterial technology
to energy storage devices and fuel cell systems;
and
(F) use of smart vehicle and grid inter-
connection devices and software that enable com-
munications between the grid of the future and
electric drive transportation technology vehicles.
(4) EDUCATION PROGRAM.—
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(A) IN GENERAL.—The Secretary shall de-
velop a nationwide electric drive transportation
technology education program under which the
Secretary shall provide—
(i) teaching materials to secondary
schools and high schools; and
(ii) assistance for programs relating to
electric drive system and component engi-
neering to institutions of higher education.
(B) ELECTRIC VEHICLE COMPETITION.—The
program established under subparagraph (A)
shall include a plug-in hybrid electric vehicle
competition for institutions of higher education,
which shall be known as the ‘‘Dr. Andrew Frank
Plug-In Electric Vehicle Competition’’.
(C) ENGINEERS.—In carrying out the pro-
gram established under subparagraph (A), the
Secretary shall provide financial assistance to
institutions of higher education to create new, or
support existing, degree programs to ensure the
availability of trained electrical and mechanical
engineers with the skills necessary for the ad-
vancement of—
(i) plug-in electric drive vehicles; and
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(ii) other forms of electric drive trans-
portation technology vehicles.
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for each of
fiscal years 2008 through 2013—
(A) 
to 
carry 
out 
paragraph 
(3)
$200,000,000; and
(B) to carry out paragraph (4) $5,000,000.
(g) COLLABORATION AND MERIT REVIEW.—
(1) COLLABORATION
WITH
NATIONAL
LABORA-
TORIES.—To the maximum extent practicable, Na-
tional Laboratories shall collaborate with the public,
private, and academic sectors and with other Na-
tional Laboratories in the design, conduct, and dis-
semination of the results of programs and activities
authorized under this section.
(2) COLLABORATION
WITH
MOBILE
ENERGY
STORAGE PROGRAM.—To the maximum extent prac-
ticable, the Secretary shall seek to coordinate the sta-
tionary and mobile energy storage programs of the
Department of the Energy with the programs and ac-
tivities authorized under this section
(3) MERIT
REVIEW.—Notwithstanding section
989 of the Energy Policy Act of 2005 (42 U.S.C.
16353), of the amounts made available to carry out
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this section, not more than 30 percent shall be pro-
vided to National Laboratories.
SEC. 246. INCLUSION OF ELECTRIC DRIVE IN ENERGY POL-
ICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42
U.S.C. 13258) is amended—
(1) by redesignating subsections (a) through (d)
as subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the fol-
lowing:
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FUEL CELL ELECTRIC VEHICLE.—The term
‘fuel cell electric vehicle’ means an on-road or
nonroad vehicle that uses a fuel cell (as defined in sec-
tion 803 of the Spark M. Matsunaga Hydrogen Act
of 2005 (42 U.S.C. 16152)).
‘‘(2) HYBRID
ELECTRIC
VEHICLE.—The term
‘hybrid electric vehicle’ means a new qualified hybrid
motor vehicle (as defined in section 30B(d)(3) of the
Internal Revenue Code of 1986).
‘‘(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHI-
CLE.—The term ‘medium- or heavy-duty electric vehi-
cle’ means an electric, hybrid electric, or plug-in hy-
brid electric vehicle with a gross vehicle weight of
more than 8,501 pounds.
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(A) by striking ‘‘The Secretary’’ and insert-
ing the following:
‘‘(1) ALLOCATION.—The Secretary’’; and
(B) by adding at the end the following:
‘‘(2) ELECTRIC VEHICLES.—Not later than Jan-
uary 31, 2009, the Secretary shall—
‘‘(A) allocate credit in an amount to be de-
termined by the Secretary for—
‘‘(i) acquisition of—
‘‘(I) a hybrid electric vehicle;
‘‘(II) a plug-in hybrid electric ve-
hicle;
‘‘(III) a fuel cell electric vehicle;
‘‘(IV) a neighborhood electric vehi-
cle; or
‘‘(V) a medium- or heavy-duty
electric vehicle; and
‘‘(ii) investment in qualified alter-
native fuel infrastructure or nonroad equip-
ment, as determined by the Secretary; and
‘‘(B) allocate more than 1, but not to exceed
5, credits for investment in an emerging tech-
nology relating to any vehicle described in sub-
paragraph (A) to encourage—
‘‘(i) a reduction in petroleum demand;
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‘‘(ii) technological advancement; and
‘‘(iii) a reduction in vehicle emis-
sions.’’;
(4) in subsection (c) (as redesignated by para-
graph (1)), by striking ‘‘subsection (a)’’ and inserting
‘‘subsection (b)’’; and
(5) by adding at the end the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2013.’’.
SEC. 
247. 
COMMERCIAL 
INSULATION 
DEMONSTRATION
PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ADVANCED
INSULATION.—The term ‘‘ad-
vanced insulation’’ means insulation that has an R
value of not less than R35 per inch.
(2) COVERED REFRIGERATION UNIT.—The term
‘‘covered refrigeration unit’’ means any—
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; and
(C) commercial refrigerator, freezer, or re-
frigerator-freezer described in section 342(c) of
the Energy Policy and Conservation Act (42
U.S.C. 6313(c)).
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(b) REPORT.—Not later than 90 days after the date
of enactment of this Act, the Secretary shall submit to Con-
gress a report that includes an evaluation of—
(1) the state of technological advancement of ad-
vanced insulation; and
(2) the projected amount of cost savings that
would be generated by implementing advanced insula-
tion into covered refrigeration units.
(c) DEMONSTRATION PROGRAM.—
(1) ESTABLISHMENT.—If the Secretary deter-
mines in the report described in subsection (b) that
the implementation of advanced insulation into cov-
ered refrigeration units would generate an economi-
cally justifiable amount of cost savings, the Secretary,
in cooperation with manufacturers of covered refrig-
eration units, shall establish a demonstration pro-
gram under which the Secretary shall demonstrate the
cost-effectiveness of advanced insulation.
(2) DISCLOSURE.—Section 623 of the Energy
Policy Act of 1992 (42 U.S.C. 13293) may apply to
any project carried out under this subsection.
(3) COST-SHARING.—Section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352) shall apply to
any project carried out under this subsection.
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(d) AUTHORIZATION
OF APPROPRIATIONS.—Of the
funds authorized under section 911(b) of Public Law 109–
58, the Energy Policy Act of 2005, such sums shall be allo-
cated to carry out this program.
Subtitle D—Setting Energy
Efficiency Goals
SEC. 251. OIL SAVINGS PLAN AND REQUIREMENTS.
(a) OIL SAVINGS TARGET AND ACTION PLAN.—Not
later than 270 days after the date of enactment of this Act,
the Director of the Office of Management and Budget (re-
ferred to in this section as the ‘‘Director’’) shall publish in
the Federal Register an action plan consisting of—
(1) a list of requirements proposed or to be pro-
posed pursuant to subsection (b) that are authorized
to be issued under law in effect on the date of enact-
ment of this Act, and this Act, that will be sufficient,
when taken together, to save from the baseline deter-
mined under subsection (e)—
(A) 2,500,000 barrels of oil per day on aver-
age during calendar year 2016;
(B) 7,000,000 barrels of oil per day on av-
erage during calendar year 2026; and
(C) 10,000,000 barrels per day on average
during calendar year 2031; and
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(2) 
a 
Federal 
Government-wide 
analysis
demonstrating—
(A) the expected oil savings from the base-
line to be accomplished by each requirement; and
(B) that all such requirements, taken to-
gether, will achieve the oil savings specified in
this subsection.
(b) STANDARDS AND REQUIREMENTS.—
(1) IN GENERAL.—On or before the date of publi-
cation of the action plan under subsection (a), the
Secretary of Energy, the Secretary of Transportation,
the Secretary of Defense, the Secretary of Agriculture,
the Secretary of the Treasury, the Administrator of
the Environmental Protection Agency, and the head
of any other agency the President determines appro-
priate shall each propose, or issue a notice of intent
to propose, regulations establishing each standard or
other requirement listed in the action plan that is
under the jurisdiction of the respective agency using
authorities described in paragraph (2).
(2) AUTHORITIES.—The head of each agency de-
scribed in paragraph (1) shall use to carry out this
subsection—
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(A) any authority in existence on the date
of enactment of this Act (including regulations);
and
(B) any new authority provided under this
Act (including an amendment made by this Act).
(3) FINAL
REGULATIONS.—Not later than 18
months after the date of enactment of this Act, the
head of each agency described in paragraph (1) shall
promulgate final versions of the regulations required
under this subsection.
(4) CONTENT OF REGULATIONS.—Each proposed
and final regulation promulgated under this sub-
section shall—
(A) be sufficient to achieve at least the oil
savings resulting from the regulation under the
action plan published under subsection (a); and
(B) be accompanied by an analysis by the
applicable agency demonstrating that the regula-
tion will achieve the oil savings from the baseline
determined under subsection (e).
(c) INITIAL EVALUATION.—
(1) IN GENERAL.—Not later than 2 years after
the date of enactment of this Act, the Director shall—
(A) publish in the Federal Register a Fed-
eral Government-wide analysis of—
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(i) the oil savings achieved from the
baseline established under subsection (e);
and
(ii) the expected oil savings under the
standards and requirements of this Act (and
amendments made by this Act); and
(B) determine whether oil savings will meet
the targets established under subsection (a).
(2) INSUFFICIENT OIL SAVINGS.—If the oil sav-
ings are less than the targets established under sub-
section (a), simultaneously with the analysis required
under paragraph (1)—
(A) the Director shall publish a revised ac-
tion plan that is sufficient to achieve the targets;
and
(B) the head of each agency referred to in
subsection (b)(1) shall propose new or revised
regulations that are sufficient to achieve the tar-
gets under paragraphs (1), (2), and (3), respec-
tively, of subsection (b).
(3) FINAL REGULATIONS.—Not later than 180
days after the date on which regulations are proposed
under paragraph (2)(B), the head of each agency re-
ferred to in subsection (b)(1) shall promulgate final
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versions of those regulations that comply with sub-
section (b)(1).
(d) REVIEW AND UPDATE OF ACTION PLAN.—
(1) REVIEW.—Not later than January 1, 2011,
and every 3 years thereafter, the Director shall submit
to Congress, and publish, a report that—
(A) evaluates the progress achieved in im-
plementing the oil savings targets established
under subsection (a);
(B) analyzes the expected oil savings under
the standards and requirements established
under this Act and the amendments made by this
Act; and
(C)(i) analyzes the potential to achieve oil
savings that are in addition to the savings re-
quired by subsection (a); and
(ii) if the President determines that it is in
the national interest, establishes a higher oil sav-
ings target for calendar year 2017 or any subse-
quent calendar year.
(2) INSUFFICIENT OIL SAVINGS.—If the oil sav-
ings are less than the targets established under sub-
section (a), simultaneously with the report required
under paragraph (1)—
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(A) the Director shall publish a revised ac-
tion plan that is sufficient to achieve the targets;
and
(B) the head of each agency referred to in
subsection (b)(1) shall propose new or revised
regulations that are sufficient to achieve the tar-
gets under paragraphs (1), (2), and (3), respec-
tively, of subsection (b).
(3) FINAL REGULATIONS.—Not later than 180
days after the date on which regulations are proposed
under paragraph (2)(B), the head of each agency re-
ferred to in subsection (b)(1) shall promulgate final
versions of those regulations that comply with sub-
section (b)(1).
(e) BASELINE
AND ANALYSIS REQUIREMENTS.—In
performing the analyses and promulgating proposed or
final regulations to establish standards and other require-
ments necessary to achieve the oil savings required by this
section, the Secretary of Energy, the Secretary of Transpor-
tation, the Secretary of Defense, the Secretary of Agri-
culture, the Administrator of the Environmental Protection
Agency, and the head of any other agency the President de-
termines to be appropriate shall—
(1) determine oil savings as the projected reduc-
tion in oil consumption from the baseline established
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by the reference case contained in the report of the
Energy Information Administration entitled ‘‘Annual
Energy Outlook 2005’’;
(2) determine the oil savings projections required
on an annual basis for each of calendar years 2009
through 2026; and
(3) account for any overlap among the standards
and other requirements to ensure that the projected oil
savings from all the promulgated standards and re-
quirements, taken together, are as accurate as prac-
ticable.
(f) NONREGULATORY MEASURES.—The action plan re-
quired under subsection (a) and the revised action plans
required under subsections (c) and (d) shall include—
(1) a projection of the barrels of oil displaced by
efficiency and sources of energy other than oil, includ-
ing biofuels, electricity, and hydrogen; and
(2) a projection of the barrels of oil saved
through enactment of this Act and the Energy Policy
Act of 2005 (42 U.S.C. 15801 et seq.).
SEC. 252. NATIONAL ENERGY EFFICIENCY IMPROVEMENT
GOALS.
(a) GOALS.—The goals of the United States are—
(1) to achieve an improvement in the overall en-
ergy productivity of the United States (measured in
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gross domestic product per unit of energy input) of at
least 2.5 percent per year by the year 2012; and
(2) to maintain that annual rate of improve-
ment each year through 2030.
(b) STRATEGIC PLAN.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary, in co-
operation with the Administrator of the Environ-
mental Protection Agency and the heads of other ap-
propriate Federal agencies, shall develop a strategic
plan to achieve the national goals for improvement in
energy productivity established under subsection (a).
(2) PUBLIC
INPUT
AND
COMMENT.—The Sec-
retary shall develop the plan in a manner that pro-
vides appropriate opportunities for public input and
comment.
(c) PLAN CONTENTS.—The strategic plan shall—
(1) establish future regulatory, funding, and pol-
icy priorities to ensure compliance with the national
goals;
(2) include energy savings estimates for each sec-
tor; and
(3) include data collection methodologies and
compilations used to establish baseline and energy
savings data.
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(d) PLAN UPDATES.—
(1) IN GENERAL.—The Secretary shall—
(A) update the strategic plan biennially;
and
(B) include the updated strategic plan in
the national energy policy plan required by sec-
tion 801 of the Department of Energy Organiza-
tion Act (42 U.S.C. 7321).
(2) CONTENTS.—In updating the plan, the Sec-
retary shall—
(A) report on progress made toward imple-
menting efficiency policies to achieve the na-
tional goals established under subsection (a); and
(B) verify, to the maximum extent prac-
ticable, energy savings resulting from the poli-
cies.
(e) REPORT TO CONGRESS AND PUBLIC.—The Sec-
retary shall submit to Congress, and make available to the
public, the initial strategic plan developed under subsection
(b) and each updated plan.
SEC. 253. NATIONAL MEDIA CAMPAIGN.
(a) IN GENERAL.—The Secretary, acting through the
Assistant Secretary for Energy Efficiency and Renewable
Energy (referred to in this section as the ‘‘Secretary’’), shall
develop and conduct a national media campaign—
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(1) to increase energy efficiency throughout the
economy of the United States over the next decade;
(2) to promote the national security benefits as-
sociated with increased energy efficiency; and
(3) to decrease oil consumption in the United
States over the next decade.
(b) CONTRACT WITH ENTITY.—The Secretary shall
carry out subsection (a) directly or through—
(1) competitively bid contracts with 1 or more
nationally recognized media firms for the development
and distribution of monthly television, radio, and
newspaper public service announcements; or
(2) collective agreements with 1 or more nation-
ally recognized institutes, businesses, or nonprofit or-
ganizations for the funding, development, and dis-
tribution of monthly television, radio, and newspaper
public service announcements.
(c) USE OF FUNDS.—
(1) IN GENERAL.—Amounts made available to
carry out this section shall be used for the following:
(A) ADVERTISING COSTS.—
(i) The purchase of media time and
space.
(ii) Creative and talent costs.
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(iii) Testing and evaluation of adver-
tising.
(iv) Evaluation of the effectiveness of
the media campaign.
(B) ADMINISTRATIVE
COSTS.—Operational
and management expenses.
(2) LIMITATIONS.—In carrying out this section,
the Secretary shall allocate not less than 85 percent
of funds made available under subsection (e) for each
fiscal year for the advertising functions specified
under paragraph (1)(A).
(d) REPORTS.—The Secretary shall annually submit
to Congress a report that describes—
(1) the strategy of the national media campaign
and whether specific objectives of the campaign were
accomplished, including—
(A) determinations concerning the rate of
change of energy consumption, in both absolute
and per capita terms; and
(B) an evaluation that enables consider-
ation whether the media campaign contributed
to reduction of energy consumption;
(2) steps taken to ensure that the national media
campaign operates in an effective and efficient man-
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ner consistent with the overall strategy and focus of
the campaign;
(3) plans to purchase advertising time and
space;
(4) policies and practices implemented to ensure
that Federal funds are used responsibly to purchase
advertising time and space and eliminate the poten-
tial for waste, fraud, and abuse; and
(5) all contracts or cooperative agreements en-
tered into with a corporation, partnership, or indi-
vidual working on behalf of the national media cam-
paign.
(e) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.
(2) DECREASED
OIL
CONSUMPTION.—The Sec-
retary shall use not less than 50 percent of the
amount that is made available under this section for
each fiscal year to develop and conduct a national
media campaign to decrease oil consumption in the
United States over the next decade.
SEC. 254. MODERNIZATION OF ELECTRICITY GRID SYSTEM.
(a) STATEMENT OF POLICY.—It is the policy of the
United States that developing and deploying advanced tech-
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nology to modernize and increase the efficiency of the elec-
tricity grid system of the United States is essential to main-
tain a reliable and secure electricity transmission and dis-
tribution infrastructure that can meet future demand
growth.
(b) PROGRAMS.—The Secretary, the Federal Energy
Regulatory Commission, and other Federal agencies, as ap-
propriate, shall carry out programs to support the use, de-
velopment, and demonstration of advanced transmission
and distribution technologies, including real-time moni-
toring and analytical software—
(1) to maximize the capacity and efficiency of
electricity networks;
(2) to enhance grid reliability;
(3) to reduce line losses;
(4) to facilitate the transition to real-time elec-
tricity pricing;
(5) to allow grid incorporation of more onsite re-
newable energy generators;
(6) to enable electricity to displace a portion of
the petroleum used to power the national transpor-
tation system of the United States; and
(7) to enable broad deployment of distributed
generation and demand side management technology.
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SEC. 255. SMART GRID SYSTEM REPORT.
(a) IN GENERAL.—The Secretary, acting through the
Director of the Office of Electricity Delivery and Energy
Reliability (referred to in this section as the ‘‘Secretary’’),
shall, after consulting with any interested individual or en-
tity as appropriate, no later than one year after enactment,
report to Congress concerning the status of smart grid de-
ployments nationwide and any regulatory or government
barriers to continued deployment.
SEC. 256. SMART GRID TECHNOLOGY RESEARCH, DEVELOP-
MENT, 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;
(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,
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and secure and dependable communications in a
highly-distributed environment;
(4) to test new reliability technologies in a grid
control room environment against a representative set
of local outage and wide area blackout scenarios;
(5) to investigate the feasibility of a transition
to time-of-use and real-time electricity pricing;
(6) to develop algorithms for use in electric
transmission system software applications;
(7) 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
(8) in consultation with the Federal Energy Reg-
ulatory Commission, to propose interconnection pro-
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.
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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;
(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.—
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(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-
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.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated—
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(A) to carry out subsection (a), such sums
as are necessary for each of fiscal years 2008
through 2012; and
(B) 
to 
carry 
out 
subsection 
(b),
$100,000,000 for each of fiscal years 2008
through 2012.
SEC. 257. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) INTEROPERABILITY FRAMEWORK.—The Federal
Energy Regulatory Commission (referred to in this section
as the ‘‘Commission’’), in cooperation with other relevant
federal agencies, shall coordinate with smart grid stake-
holders to develop protocols for the establishment of a flexi-
ble framework for the connection of smart grid devices and
systems that would align policy, business, and technology
approaches in a manner that would enable all electric re-
sources, including demand-side resources, to contribute to
an efficient, reliable electricity network.
(c) SCOPE OF FRAMEWORK.—The framework developed
under subsection (b) shall be designed—
(1) to accommodate traditional, centralized gen-
eration and transmission resources and consumer dis-
tributed resources, including distributed generation,
renewable generation, energy storage, energy effi-
ciency, and demand response and enabling devices
and systems;
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(2) to be flexible to incorporate—
(A) regional and organizational differences;
and
(B) technological innovations; and
(3) to consider include voluntary uniform stand-
ards for certain classes of mass-produced electric ap-
pliances and equipment for homes and businesses that
enable customers, at their election and consistent with
applicable State and federal laws, and are manufac-
tured with the ability to respond to electric grid emer-
gencies and demand response signals by curtailing
all, or a portion of, the electrical power consumed by
the appliances or equipment in response to an emer-
gency 
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.
(4) Such voluntary standards should incorporate
appropriate manufacturer lead time.
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SEC. 258. STATE CONSIDERATION OF SMART GRID.
Section 111(d) of the Public Utility Regulatory Poli-
cies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding
at the end the following:
‘‘(16) CONSIDERATION OF SMART GRID IN-
VESTMENTS.—Each State shall consider requir-
ing that, prior to undertaking investments in
nonadvanced grid technologies, an electric utility
of the State demonstrate to the State 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
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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-
fied smart grid system, based on the remaining
depreciable life of the obsolete equipment.’’.
SEC. 259. SUPPORT FOR ENERGY INDEPENDENCE OF THE
UNITED STATES.
It is the policy of the United States to provide support
for projects and activities to facilitate the energy independ-
ence of the United States so as to ensure that all but 10
percent of the energy needs of the United States are supplied
by domestic energy sources.
SEC. 260. ENERGY POLICY COMMISSION.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established a com-
mission, to be known as the ‘‘National Commission on
Energy Independence’’ (referred to in this section as
the ‘‘Commission’’).
(2) MEMBERSHIP.—The Commission shall be
composed of 15 members, of whom—
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(A) 3 shall be appointed by the President;
(B) 3 shall be appointed by the majority
leader of the Senate;
(C) 3 shall be appointed by the minority
leader of the Senate;
(D) 3 shall be appointed by the Speaker of
the House of Representatives; and
(E) 3 shall be appointed by the minority
leader of the House of Representatives.
(3) CO-CHAIRPERSONS.—
(A) IN GENERAL.—The President shall des-
ignate 2 co-chairpersons from among the mem-
bers of the Commission appointed.
(B) POLITICAL AFFILIATION.—The co-chair-
persons designated under subparagraph (A) shall
not both be affiliated with the same political
party.
(4) DEADLINE FOR APPOINTMENT.—Members of
the Commission shall be appointed not later than 90
days after the date of enactment of this Act.
(5) TERM; VACANCIES.—
(A) TERM.—A member of the Commission
shall be appointed for the life of the Commission.
(B) VACANCIES.—Any vacancy in the
Commission—
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independence, including a detailed statement of the
consensus findings, conclusions, and recommendations
of the Commission.
(2) LEGISLATIVE LANGUAGE.—If a recommenda-
tion submitted under paragraph (1) involves legisla-
tive action, the report shall include proposed legisla-
tive language to carry out the action.
(d) COMMISSION PERSONNEL MATTERS.—
(1) STAFF
AND
DIRECTOR.—The Commission
shall have a staff headed by an Executive Director.
(2) STAFF APPOINTMENT.—The Executive Direc-
tor may appoint such personnel as the Executive Di-
rector and the Commission determine to be appro-
priate.
(3) EXPERTS AND CONSULTANTS.—With the ap-
proval of the Commission, the Executive Director may
procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
(4) FEDERAL AGENCIES.—
(A) DETAIL
OF
GOVERNMENT
EMPLOY-
EES.—
(i) IN GENERAL.—Upon the request of
the Commission, the head of any Federal
agency may detail, without reimbursement,
any of the personnel of the Federal agency
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to the Commission to assist in carrying out
the duties of the Commission.
(ii) NATURE OF DETAIL.—Any detail
of a Federal employee under clause (i) shall
not interrupt or otherwise affect the civil
service status or privileges of the Federal
employee.
(B) TECHNICAL ASSISTANCE.—Upon the re-
quest of the Commission, the head of a Federal
agency shall provide such technical assistance to
the Commission as the Commission determines to
be necessary to carry out the duties of the Com-
mission.
(e) RESOURCES.—
(1) IN GENERAL.—The Commission shall have
reasonable access to materials, resources, statistical
data, and such other information from Executive
agencies as the Commission determines to be nec-
essary to carry out the duties of the Commission.
(2) FORM OF REQUESTS.—The co-chairpersons of
the Commission shall make requests for access de-
scribed in paragraph (1) in writing, as necessary.
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Subtitle 
E—Promoting 
Federal
Leadership in Energy Efficiency
and Renewable Energy
SEC. 261. FEDERAL FLEET CONSERVATION REQUIREMENTS.
(a) FEDERAL
FLEET
CONSERVATION
REQUIRE-
MENTS.—
(1) IN GENERAL.—Part J of title III of the En-
ergy Policy and Conservation Act (42 U.S.C. 6374 et
seq.) is amended by adding at the end the following:
‘‘SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIRE-
MENTS.
‘‘(a) MANDATORY REDUCTION IN PETROLEUM CON-
SUMPTION.—
‘‘(1) IN
GENERAL.—The Secretary shall issue
regulations (including provisions for waivers from the
requirements of this section) for Federal fleets subject
to section 400AA requiring that not later than Octo-
ber 1, 2015, each Federal agency achieve at least a 20
percent reduction in petroleum consumption, and that
each Federal agency increase alternative fuel con-
sumption by 10 percent annually, as calculated from
the baseline established by the Secretary for fiscal
year 2005.
‘‘(2) PLAN.—
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‘‘(A) REQUIREMENT.—The regulations shall
require each Federal agency to develop a plan to
meet the required petroleum reduction levels and
the alternative fuel consumption increases.
‘‘(B) MEASURES.—The plan may allow an
agency to meet the required petroleum reduction
level through—
‘‘(i) the use of alternative fuels;
‘‘(ii) the acquisition of vehicles with
higher fuel economy, including hybrid vehi-
cles, neighborhood electric vehicles, electric
vehicles, and plug–in hybrid vehicles if the
vehicles are commercially available;
‘‘(iii) the substitution of cars for light
trucks;
‘‘(iv) an increase in vehicle load fac-
tors;
‘‘(v) a decrease in vehicle miles trav-
eled;
‘‘(vi) a decrease in fleet size; and
‘‘(vii) other measures.
‘‘(b) FEDERAL EMPLOYEE INCENTIVE PROGRAMS FOR
REDUCING PETROLEUM CONSUMPTION.—
‘‘(1) IN GENERAL.—Each Federal agency shall
actively promote incentive programs that encourage
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Federal employees and contractors to reduce petro-
leum usage through the use of practices such as—
‘‘(A) telecommuting;
‘‘(B) public transit;
‘‘(C) carpooling; and
‘‘(D) bicycling and the use of 2-wheeled elec-
tric drive devices.
‘‘(2) MONITORING AND SUPPORT FOR INCENTIVE
PROGRAMS.—The Administrator of General Services,
the Director of the Office of Personnel Management,
and the Secretary of Energy shall monitor and pro-
vide appropriate support to agency programs de-
scribed in paragraph (1).
‘‘(3) RECOGNITION.—The Secretary may estab-
lish a program under which the Secretary recognizes
private sector employers and State and local govern-
ments for outstanding programs to reduce petroleum
usage through practices described in paragraph (1).
‘‘(c) REPLACEMENT TIRES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the regulations issued under subsection
(a)(1) shall include a requirement that, to the max-
imum extent practicable, each Federal agency pur-
chase energy-efficient replacement tires for the respec-
tive fleet vehicles of the agency.
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‘‘(2) EXCEPTIONS.—This section does not apply
to—
‘‘(A) law enforcement motor vehicles;
‘‘(B) emergency motor vehicles; or
‘‘(C) motor vehicles acquired and used for
military purposes that the Secretary of Defense
has certified to the Secretary must be exempt for
national security reasons.
‘‘(d) ANNUAL REPORTS ON COMPLIANCE.—The Sec-
retary shall submit to Congress an annual report that sum-
marizes actions taken by Federal agencies to comply with
this section.’’.
(2) TABLE
OF
CONTENTS
AMENDMENT.—The
table of contents of the Energy Policy and Conserva-
tion Act (42 U.S.C. prec. 6201) is amended by adding
at the end of the items relating to part J of title III
the following:
‘‘Sec. 400FF. Federal fleet conservation requirements.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out the amendment
made by this section $10,000,000 for the period of fiscal
years 2008 through 2013.
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SEC. 262. FEDERAL REQUIREMENT TO PURCHASE ELEC-
TRICITY GENERATED BY RENEWABLE EN-
ERGY.
Section 203 of the Energy Policy Act of 2005 (42
U.S.C. 15852) is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) REQUIREMENT.—
‘‘(1) 
IN
GENERAL.—The 
President, 
acting
through the Secretary, shall require that, to the extent
economically feasible and technically practicable, of
the total quantity of domestic electric energy the Fed-
eral Government consumes during any fiscal year, the
following percentages shall be renewable energy from
facilities placed in service after January 1, 1999:
‘‘(A) Not less than 10 percent in fiscal year
2010.
‘‘(B) Not less than 15 percent in fiscal year
2015.
‘‘(2) CAPITOL COMPLEX.—The Architect of the
Capitol, in consultation with the Secretary, shall en-
sure that, of the total quantity of electric energy the
Capitol complex consumes during any fiscal year, the
percentages prescribed in paragraph (1) shall be re-
newable energy.
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‘‘(3) WAIVER AUTHORITY.—The President may
reduce or waive the requirement under paragraph (1)
on a fiscal-year basis if the President determines that
complying with paragraph (1) for a fiscal year would
result in—
‘‘(A) a negative impact on military train-
ing or readiness activities conducted by the De-
partment of Defense;
‘‘(B) a negative impact on domestic pre-
paredness activities conducted by the Depart-
ment of Homeland Security; or
‘‘(C) a requirement that a Federal agency
provide emergency response services in the event
of a natural disaster or terrorist attack.’’; and
(2) by adding at the end the following:
‘‘(e) CONTRACTS
FOR RENEWABLE ENERGY FROM
PUBLIC
UTILITY
SERVICES.—Notwithstanding section
501(b)(1)(B) of title 40, United States Code, a contract for
renewable energy may be made for a period of not more
than 50 years.’’.
SEC. 263. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) RETENTION OF SAVINGS.—Section 546(c) of the
National Energy Conservation Policy Act (42 U.S.C.
8256(c)) is amended by striking paragraph (5).
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(b) SUNSET AND REPORTING REQUIREMENTS.—Sec-
tion 801 of the National Energy Conservation Policy Act
(42 U.S.C. 8287) is amended by striking subsection (c).
(c) DEFINITION OF ENERGY SAVINGS.—Section 804(2)
of the National Energy Conservation Policy Act (42 U.S.C.
8287c(2)) is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively,
and indenting appropriately;
(2) by striking ‘‘means a reduction’’ and insert-
ing ‘‘means—
‘‘(A) a reduction’’;
(3) by striking the period at the end and insert-
ing a semicolon; and
(4) by adding at the end the following:
‘‘(B) the increased efficient use of an exist-
ing energy source by cogeneration or heat recov-
ery, and installation of renewable energy sys-
tems;
‘‘(C) if otherwise authorized by Federal or
State law (including regulations), the sale or
transfer of electrical or thermal energy generated
on-site from renewable energy sources or cogen-
eration, but in excess of Federal needs, to utili-
ties or non-Federal energy users; and
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‘‘(D) the increased efficient use of existing
water sources in interior or exterior applica-
tions.’’.
(d) NOTIFICATION.—
(1) AUTHORITY TO ENTER INTO CONTRACTS.—
Section 801(a)(2)(D) of the National Energy Con-
servation Policy Act (42 U.S.C. 8287(a)(2)(D)) is
amended—
(A) in clause (ii), by inserting ‘‘and’’ after
the semicolon at the end;
(B) by striking clause (iii); and
(C) by redesignating clause (iv) as clause
(iii).
(2) REPORTS.—Section 548(a)(2) of the National
Energy 
Conservation 
Policy 
Act 
(42 
U.S.C.
8258(a)(2)) is amended by inserting ‘‘and any termi-
nation penalty exposure’’ after ‘‘the energy and cost
savings that have resulted from such contracts’’.
(3) CONFORMING AMENDMENT.—Section 2913 of
title 10, United States Code, is amended by striking
subsection (e).
(e) ENERGY AND COST SAVINGS IN NONBUILDING AP-
PLICATIONS.—
(1) DEFINITIONS.—In this subsection:
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(A) NONBUILDING APPLICATION.—The term
‘‘nonbuilding application’’ means—
(i) any class of vehicles, devices, or
equipment that is transportable under the
power of the applicable vehicle, device, or
equipment by land, sea, or air and that
consumes energy from any fuel source for
the purpose of—
(I) that transportation; or
(II) maintaining a controlled en-
vironment within the vehicle, device, or
equipment; and
(ii) any federally-owned equipment
used to generate electricity or transport
water.
(B) SECONDARY SAVINGS.—
(i) IN GENERAL.—The term ‘‘secondary
savings’’ means additional energy or cost
savings that are a direct consequence of the
energy savings that result from the energy
efficiency improvements that were financed
and implemented pursuant to an energy
savings performance contract.
(ii) 
INCLUSIONS.—The 
term 
‘‘sec-
ondary savings’’ includes—
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(I) energy and cost savings that
result from a reduction in the need for
fuel delivery and logistical support;
(II) personnel cost savings and
environmental benefits; and
(III) in the case of electric genera-
tion equipment, the benefits of in-
creased efficiency in the production of
electricity, including revenues received
by the Federal Government from the
sale of electricity so produced.
(2) STUDY.—
(A) IN GENERAL.—As soon as practicable
after the date of enactment of this Act, the Sec-
retary and the Secretary of Defense shall jointly
conduct, and submit to Congress and the Presi-
dent a report of, a study of the potential for the
use of energy savings performance contracts to
reduce energy consumption and provide energy
and cost savings in nonbuilding applications.
(B) REQUIREMENTS.—The study under this
subsection shall include—
(i) an estimate of the potential energy
and cost savings to the Federal Government,
including secondary savings and benefits,
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from increased efficiency in nonbuilding
applications;
(ii) an assessment of the feasibility of
extending the use of energy savings perform-
ance contracts to nonbuilding applications,
including an identification of any regu-
latory or statutory barriers to such use; and
(iii) such recommendations as the Sec-
retary and Secretary of Defense determine
to be appropriate.
SEC. 264. ENERGY MANAGEMENT REQUIREMENTS FOR FED-
ERAL BUILDINGS.
Section 543(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking
the table and inserting the following:
‘‘Fiscal Year
Percentage reduction
2006 ................................................................................................
2007 ................................................................................................
2008 ................................................................................................
2009 ................................................................................................
2010 ................................................................................................
2011 ................................................................................................
2012 ................................................................................................
2013 ................................................................................................
2014 ................................................................................................
2015 ................................................................................................
30.’’.
SEC. 265. COMBINED HEAT AND POWER AND DISTRICT EN-
ERGY INSTALLATIONS AT FEDERAL SITES.
Section 543 of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253) is amended by adding at the end
the following:
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‘‘(f) COMBINED HEAT AND POWER AND DISTRICT EN-
ERGY INSTALLATIONS AT FEDERAL SITES.—
‘‘(1) IN GENERAL.—Not later than 18 months
after the date of enactment of this subsection, the Sec-
retary, in consultation with the Administrator of
General Services and the Secretary of Defense, shall
identify Federal sites that could achieve significant
cost-effective energy savings through the use of com-
bined heat and power or district energy installations.
‘‘(2) INFORMATION
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary shall provide agencies with in-
formation and technical assistance that will enable
the agencies to take advantage of the energy savings
described in paragraph (1).
‘‘(3) ENERGY PERFORMANCE REQUIREMENTS.—
Any energy savings from the installations described
in paragraph (1) may be applied to meet the energy
performance requirements for an agency under sub-
section (a)(1).’’.
SEC. 266. FEDERAL BUILDING ENERGY EFFICIENCY PER-
FORMANCE STANDARDS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) is amended—
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(1) in the matter preceding clause (i), by strik-
ing ‘‘this paragraph’’ and by inserting ‘‘the Energy
Efficiency Promotion Act of 2007’’; and
(2) in clause (i)—
(A) in subclause (I), by striking ‘‘and’’ at
the end;
(B) by redesignating subclause (II) as sub-
clause (III); and
(C) by inserting after subclause (I) the fol-
lowing:
‘‘(II) the buildings be designed, to the extent
economically feasible and technically practicable,
so that the fossil fuel-generated energy consump-
tion of the buildings is reduced, as compared
with the fossil fuel-generated energy consumption
by a similar Federal building in fiscal year
2003 (as measured by Commercial Buildings
Energy Consumption Survey or Residential En-
ergy Consumption Survey data from the Energy
Information Agency), by the percentage specified
in the following table:
‘‘Fiscal Year
Percentage reduction
2007 ................................................................................................
2010 ................................................................................................
2015 ................................................................................................
2020 ................................................................................................
2025 ................................................................................................
2030 ................................................................................................
100;
and’’.
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SEC. 267. APPLICATION OF INTERNATIONAL ENERGY CON-
SERVATION CODE TO PUBLIC AND ASSISTED
HOUSING.
Section 109 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12709) is amended—
(1) in subsection (a)(1)(C), by striking, ‘‘, where
such standards are determined to be cost effective by
the Secretary of Housing and Urban Development’’;
(2) in subsection (a)(2)—
(A) by striking ‘‘the Council of American
Building Officials Model Energy Code, 1992’’
and inserting ‘‘2006 International Energy Con-
servation Code’’; and
(B) by striking ‘‘, and, with respect to reha-
bilitation and new construction of public and as-
sisted housing funded by HOPE VI revitaliza-
tion grants under section 24 of the United States
Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code’’;
(3) in subsection (b)—
(A) in the heading, by striking ‘‘MODEL
ENERGY
CODE.—’’ 
and 
inserting 
‘‘INTER-
NATIONAL ENERGY CONSERVATION CODE.—’’;
(B) after ‘‘all new construction’’ in the first
sentence insert ‘‘and rehabilitation’’; and
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(C) by striking ‘‘, and, with respect to reha-
bilitation and new construction of public and as-
sisted housing funded by HOPE VI revitaliza-
tion grants under section 24 of the United States
Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code’’;
(4) in subsection (c)—
(A) in the heading, by striking ‘‘MODEL
ENERGY CODE AND’’; and
(B) by striking ‘‘, or, with respect to reha-
bilitation and new construction of public and as-
sisted housing funded by HOPE VI revitaliza-
tion grants under section 24 of the United States
Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code’’;
(5) by adding at the end the following:
‘‘(d) FAILURE TO AMEND THE STANDARDS.—If the
Secretaries have not, within 1 year after the requirements
of the 2006 IECC or the ASHRAE Standard 90.1–2004 are
revised, amended the standards or made a determination
under subsection (c) of this section, the Secretary of Hous-
ing and Urban Development or the Secretary of Agriculture
make a determination that the revised codes do not nega-
tively affect the availability or affordability of new con-
struction of assisted housing and single family and multi-
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family residential housing (other than manufactured
homes) subject to mortgages insured under the National
Housing Act (12 U.S.C. 1701 et seq.) or insured, guaran-
teed, or made by the Secretary of Agriculture under title
V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), re-
spectively, and the Secretary of Energy has made a deter-
mination under section 304 of the Energy Conservation and
Production Act (42 U.S.C. 6833) that the revised code or
standard would improve energy efficiency, all new construc-
tion and rehabilitation of housing specified in subsection
(a) shall meet the requirements of the revised code or stand-
ard.’’;
(6) by striking ‘‘CABO Model Energy Code,
1992’’ each place it appears and inserting ‘‘the 2006
IECC’’; and
(7) by striking ‘‘1989’’ each place it appears and
inserting ‘‘2004’’.
SEC. 268. ENERGY EFFICIENT COMMERCIAL BUILDINGS INI-
TIATIVE.
(a) DEFINITIONS.—In this section:
(1) 
CONSORTIUM.—The 
term 
‘‘consortium’’
means a working group that is comprised of—
(A) individuals representing—
(i) 1 or more businesses engaged in—
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(I) commercial building develop-
ment;
(II) construction; or
(III) real estate;
(ii) financial institutions;
(iii) academic or research institutions;
(iv) State or utility energy efficiency
programs;
(v) nongovernmental energy efficiency
organizations; and
(vi) the Federal Government;
(B) 1 or more building designers; and
(C) 1 or more individuals who own or oper-
ate 1 or more buildings.
(2) ENERGY
EFFICIENT
COMMERCIAL
BUILD-
ING.—The term ‘‘energy efficient commercial build-
ing’’ means a commercial building that is designed,
constructed, and operated—
(A) to require a greatly reduced quantity of
energy;
(B) to meet, on an annual basis, the bal-
ance of energy needs of the commercial building
from renewable sources of energy; and
(C) to be economically viable.
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(3) INITIATIVE.—The term ‘‘initiative’’ means
the Energy Efficient Commercial Buildings Initia-
tive.
(b) INITIATIVE.—
(1) IN GENERAL.—The Secretary shall enter into
an agreement with the consortium to develop and
carry out the initiative—
(A) to reduce the quantity of energy con-
sumed by commercial buildings located in the
United States; and
(B) to achieve the development of energy ef-
ficient commercial buildings in the United
States.
(2) GOAL OF INITIATIVE.—The goal of the initia-
tive shall be to develop technologies and practices and
implement policies that lead to energy efficient com-
mercial buildings for—
(A) any commercial building newly con-
structed in the United States by 2030;
(B) 50 percent of the commercial building
stock of the United States by 2040; and
(C) all commercial buildings in the United
States by 2050.
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(3) COMPONENTS.—In carrying out the initia-
tive, the Secretary, in collaboration with the consor-
tium, may—
(A) conduct research and development on
building design, materials, equipment and con-
trols, operation and other practices, integration,
energy use measurement and benchmarking, and
policies;
(B) conduct demonstration projects to
evaluate replicable approaches to achieving en-
ergy efficient commercial buildings for a variety
of building types in a variety of climate zones;
(C) conduct deployment activities to dis-
seminate information on, and encourage wide-
spread adoption of, technologies, practices, and
policies to achieve energy efficient commercial
buildings; and
(D) conduct any other activity necessary to
achieve any goal of the initiative, as determined
by the Secretary, in collaboration with the con-
sortium.
(c) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated such sums as are necessary to carry out
this section.
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(2) ADDITIONAL
FUNDING.—In addition to
amounts authorized to be appropriated under para-
graph (1), the Secretary may allocate funds from
other appropriations to the initiative without chang-
ing the purpose for which the funds are appropriated.
SEC. 269. CLEAN ENERGY CORRIDORS.
Section 216 of the Federal Power Act (16 U.S.C. 824p)
is amended—
(1) in subsection (a)—
(A) by striking ‘‘(1) Not later than’’ and in-
serting the following:
‘‘(1) IN GENERAL.—Not later than’’;
(B) by striking paragraph (2) and inserting
the following:
‘‘(2) REPORT AND DESIGNATIONS.—
‘‘(A) IN GENERAL.—After considering alter-
natives and recommendations from interested
parties (including an opportunity for comment
from affected States), the Secretary shall issue a
report, based on the study conducted under para-
graph (1), in which the Secretary may designate
as a national interest electric transmission cor-
ridor any geographic area experiencing electric
energy transmission capacity constraints or con-
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gestion that adversely affects consumers, includ-
ing constraints or congestion that—
‘‘(i) increases costs to consumers;
‘‘(ii) limits resource options to serve
load growth; or
‘‘(iii) limits access to sources of clean
energy, such as wind, solar energy, geo-
thermal energy, and biomass.
‘‘(B) ADDITIONAL DESIGNATIONS.—In addi-
tion to the corridor designations made under
subparagraph (A), the Secretary may designate
additional corridors in accordance with that sub-
paragraph upon the application by an interested
person, on the condition that the Secretary pro-
vides for an opportunity for notice and comment
by interested persons and affected States on the
application.’’;
(C) in paragraph (3), the striking ‘‘(3) The
Secretary’’ and inserting the following:
‘‘(3) CONSULTATION.—The Secretary’’; and
(D) in paragraph (4)—
(i) by striking ‘‘(4) In determining’’
and inserting the following:
‘‘(4) BASIS
FOR
DETERMINATION.—In deter-
mining’’; and
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(ii) by striking subparagraphs (A)
through (E) and inserting the following:
‘‘(A) the economic vitality and development
of the corridor, or the end markets served by the
corridor, may be constrained by lack of adequate
or reasonably priced electricity;
‘‘(B)(i) economic growth in the corridor, or
the end markets served by the corridor, may be
jeopardized by reliance on limited sources of en-
ergy; and
‘‘(ii) a diversification of supply is war-
ranted;
‘‘(C) the energy independence of the United
States would be served by the designation;
‘‘(D) the designation would be in the inter-
est of national energy policy; and
‘‘(E) the designation would enhance na-
tional defense and homeland security.’’; and
(2) by adding at the end the following:
‘‘(l) RATES AND RECOVERY OF COSTS.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this subsection, the Commis-
sion shall promulgate regulations providing for the
allocation and recovery of costs prudently incurred by
public utilities in building and operating facilities
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authorized under this section for transmission of elec-
tric energy generated from clean sources (such as
wind, solar energy, geothermal energy, and biomass).
‘‘(2) APPLICABLE
PROVISIONS.—All rates ap-
proved under the regulations promulgated under
paragraph (1), including any revisions to the regula-
tions, shall be subject to the requirements under sec-
tions 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly dis-
criminatory or preferential.’’.
SEC. 270. FEDERAL STANDBY POWER STANDARD.
(a) DEFINITIONS.—In this section:
(1) AGENCY.—
(A) IN GENERAL.—The term ‘‘Agency’’ has
the meaning given the term ‘‘Executive agency’’
in section 105 of title 5, United States Code.
(B) INCLUSIONS.—The term ‘‘Agency’’ in-
cludes military departments, as the term is de-
fined in section 102 of title 5, United States
Code.
(2) ELIGIBLE
PRODUCT.—The term ‘‘eligible
product’’ means a commercially available, off-the-shelf
product that—
(A)(i) uses external standby power devices;
or
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ministrator of General Services, shall compile a publicly
accessible list of cost-effective eligible products that shall be
subject to the purchasing requirements of subsection (b).
SEC. 270A. STANDARD RELATING TO SOLAR HOT WATER
HEATERS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) (as amended by
section 266) is amended—
(1) in clause (i)(III), by striking ‘‘and’’ at the
end;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(iii) if life-cycle cost-effective, as com-
pared to other reasonably available tech-
nologies, not less than 30 percent of the hot
water demand for each new or substantially
modified Federal building be met through
the installation and use of solar hot water
heaters.’’.
SEC. 270B. RENEWABLE ENERGY INNOVATION MANUFAC-
TURING PARTNERSHIP.
(a) ESTABLISHMENT.—The Secretary shall carry out
a program, to be known as the Renewable Energy Innova-
tion Manufacturing Partnership Program (referred to in
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this section as the ‘‘Program’’), to make assistance awards
to eligible entities for use in carrying out research, develop-
ment, and demonstration relating to the manufacturing of
renewable energy technologies.
(b) SOLICITATION.—To carry out the Program, the
Secretary shall annually conduct a competitive solicitation
for assistance awards for an eligible project described in
subsection (e).
(c) PROGRAM PURPOSES.—The purposes of the Pro-
gram are—
(1) to develop, or aid in the development of, ad-
vanced manufacturing processes, materials, and in-
frastructure;
(2) to increase the domestic production of renew-
able energy technology and components; and
(3) to better coordinate Federal, State, and pri-
vate resources to meet regional and national renew-
able energy goals through advanced manufacturing
partnerships.
(d) ELIGIBLE ENTITIES.—An entity shall be eligible
to receive an assistance award under the Program to carry
out an eligible project described in subsection (e) if the enti-
ty is composed of—
(1) 1 or more public or private nonprofit institu-
tions or national laboratories engaged in research, de-
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velopment, demonstration, or technology transfer, that
would participate substantially in the project; and
(2) 1 or more private entities engaged in the
manufacturing or development of renewable energy
system components (including solar energy, wind en-
ergy, biomass, geothermal energy, energy storage, or
fuel cells).
(e) ELIGIBLE PROJECTS.—An eligible entity may use
an assistance award provided under this section to carry
out a project relating to—
(1) the conduct of studies of market opportunities
for component manufacturing of renewable energy
systems;
(2) the conduct of multiyear applied research,
development, demonstration, and deployment projects
for advanced manufacturing processes, materials, and
infrastructure for renewable energy systems; and
(3) other similar ventures, as approved by the
Secretary, that promote advanced manufacturing of
renewable technologies.
(f) CRITERIA AND GUIDELINES.—The Secretary shall
establish criteria and guidelines for the submission, evalua-
tion, and funding of proposed projects under the Program.
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(g) COST SHARING.—Section 988 of the Energy Policy
Act of 2005 (42 U.S.C. 16352) shall apply to a project car-
ried out under this section.
(h) DISCLOSURE.—Section 623 of the Energy Policy
Act of 1992 (42 U.S.C. 13293) shall apply to a project car-
ried out under this subsection.
(i) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the Secretary should ensure that small businesses
engaged in renewable manufacturing be considered for loan
guarantees authorized under title XVII of the Energy Policy
Act of 2005 (42 U.S.C. 16511 et seq.).
(j) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated out of funds already author-
ized to carry out this section $25,000,000 for each of fiscal
years 2008 through 2013, to remain available until ex-
pended.
SEC. 270C. 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’—
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‘‘(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;
‘‘(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;
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‘‘(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).
‘‘(ii) LOANS.—Loans may be made
under the ‘Express Loan Program’ for the
purpose of—
‘‘(I) purchasing a renewable en-
ergy system; or
‘‘(II) an energy efficiency project
for an existing business.’’.
SEC. 270D. SMALL BUSINESS ENERGY EFFICIENCY.
(a) DEFINITIONS.—In this section—
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(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);
(4) 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);
(5) 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;
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(6) the term ‘‘small business concern’’ has the
meaning given that term in section 3 of the Small
Business Act (15 U.S.C. 636);
(7) 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);
(8) the term ‘‘telecommuting’’ means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to
commute; and
(9) 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.
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(2) PLAN.—Not later than 90 days after the date
of enactment of this Act, the Administrator shall pub-
lish a detailed plan regarding how the Administrator
will—
(A) assist small business concerns in becom-
ing more energy efficient; and
(B) build on the Energy Star for Small
Business Program of the Department of Energy
and the Environmental Protection Agency.
(3) ASSISTANT
ADMINISTRATOR
FOR
SMALL
BUSINESS ENERGY POLICY.—
(A) IN GENERAL.—There is in the Adminis-
tration an Assistant Administrator for Small
Business Energy Policy, who shall be appointed
by, and report to, the Administrator.
(B) DUTIES.—The Assistant Administrator
for Small Business Energy Policy shall—
(i) oversee and administer the require-
ments under this subsection and section
337(d) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6307(d)); and
(ii) promote energy efficiency efforts
for small business concerns and reduce en-
ergy costs of small business concerns.
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(4) REPORTS.—The Administrator shall submit
to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small
Business of the House of Representatives an annual
report on the progress of the Administrator in encour-
aging small business concerns to become more energy
efficient, including data on the rate of use of the
Small Business Energy Clearinghouse established
under section 337(d)(4) of the Energy Policy and
Conservation Act (42 U.S.C. 6307(d)(4)).
(c) SMALL BUSINESS ENERGY EFFICIENCY.—
(1) AUTHORITY.—The Administrator shall estab-
lish a Small Business Energy Efficiency Pilot Pro-
gram (in this subsection referred to as the ‘‘Efficiency
Pilot Program’’) to provide energy efficiency assist-
ance to small business concerns through small busi-
ness development centers.
(2) SMALL BUSINESS DEVELOPMENT CENTERS.—
(A) IN GENERAL.—In carrying out the Effi-
ciency Pilot Program, the Administrator shall
enter into agreements with small business devel-
opment centers under which such centers shall—
(i) provide access to information and
resources on energy efficiency practices, in-
cluding on-bill financing options;
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(ii) conduct training and educational
activities;
(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; and
(v) act as a facilitator between small
business concerns, electric utilities, lenders,
and the Administration to facilitate on-bill
financing arrangements.
(B) REPORTS.—Each small business devel-
opment center participating in the Efficiency
Pilot Program shall submit to the Administrator
and the Administrator of the Environmental
Protection Agency an annual report that
includes—
(i) a summary of the energy efficiency
assistance provided by that center under the
Efficiency Pilot Program;
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(ii) the number of small business con-
cerns assisted by that center under the Effi-
ciency Pilot Program;
(iii) statistics on the total amount of
energy saved as a result of assistance pro-
vided by that center under the Efficiency
Pilot Program; and
(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 Pilot Program submitted by small busi-
ness development centers participating in that
program.
(3) ELIGIBILITY.—A small business development
center shall be eligible to participate in the Efficiency
Pilot Program only if that center is certified under
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Carolina, Mississippi, Florida, Kentucky,
and Tennessee.
(vi) GROUP 5.—Group 5 shall consist
of Illinois, Ohio, Michigan, Indiana, Wis-
consin, and Minnesota.
(vii) GROUP 6.—Group 6 shall consist
of Texas, New Mexico, Arkansas, Oklahoma,
and Louisiana.
(viii) GROUP 7.—Group 7 shall consist
of Missouri, Iowa, Nebraska, and Kansas.
(ix) GROUP 8.—Group 8 shall consist
of Colorado, Wyoming, North Dakota, South
Dakota, Montana, and Utah.
(x) GROUP 9.—Group 9 shall consist of
California, Guam, American Samoa, Ha-
waii, Nevada, and Arizona.
(xi) GROUP 10.—Group 10 shall con-
sist of Washington, Alaska, Idaho, and Or-
egon.
(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 Pilot Program.
(6) GRANT AMOUNTS.—Each small business de-
velopment center selected to participate in the Effi-
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ciency Pilot 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 Pilot Program, initiate an evaluation of
that pilot program; and
(B) not later than 6 months after the date
of the initiation of the evaluation under sub-
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 Pilot Program, with
or without modification, should be extended
to include the participation of all small
business development centers.
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(8) GUARANTEE.—The Administrator may guar-
antee the timely payment of a loan made to a small
business concern through an on-bill financing agree-
ment on such terms and conditions as the Adminis-
trator shall establish through a formal rule making,
after providing notice and an opportunity for com-
ment.
(9) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—There are authorized to
be appropriated from such sums as are already
authorized under section 21 of the Small Busi-
ness Act to carry out this subsection—
(i) $5,000,000 for the first fiscal year
beginning after the date of enactment of this
Act; and
(ii) $5,000,000 for each of the 3 fiscal
years following the fiscal year described in
clause (i).
(B) 
LIMITATION
ON
USE
OF
OTHER
FUNDS.—The Administrator may carry out the
Efficiency Pilot Program only with amounts ap-
propriated in advance specifically to carry out
this subsection.
(10) TERMINATION.—The authority under this
subsection shall terminate 4 years after the date of
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disbursement of the first grant under the Efficiency
Pilot Program.
(d) SMALL BUSINESS TELECOMMUTING.—
(1) PILOT PROGRAM.—
(A) IN GENERAL.—In accordance with this
subsection, the Administrator shall conduct, in
not more than 5 of the regions of the Adminis-
tration, a pilot program to provide information
regarding telecommuting to employers that are
small business concerns and to encourage such
employers to offer telecommuting options to em-
ployees (in this subsection referred to as the
‘‘Telecommuting Pilot Program’’).
(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,
particularly veterans who are individuals
with disabilities;
(ii) Federal, State, and local agencies
having knowledge and expertise in assisting
individuals with disabilities, including vet-
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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
(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
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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
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.
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(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
to SBIR and STTR solicitations by Federal agencies,
the Administrator shall—
‘‘(A) ensure that such agencies give high
priority to small business concerns that partici-
pate in or conduct energy efficiency 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
agencies and departments 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 section.
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‘‘(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 section.
‘‘(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;
‘‘(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—
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‘‘(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).’’.
Subtitle 
F—Assisting 
State 
and
Local Governments in Energy Ef-
ficiency
SEC. 271. WEATHERIZATION ASSISTANCE FOR LOW-INCOME
PERSONS.
Section 422 of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6872) is amended by striking
‘‘$700,000,000 for fiscal year 2008’’ and inserting
‘‘$750,000,000 for each of fiscal years 2008 through 2012’’.
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SEC. 272. STATE ENERGY CONSERVATION PLANS.
Section 365(f) of the Energy Policy and Conservation
Act (42 U.S.C. 6325(f)) is amended by striking ‘‘fiscal year
2008’’ and inserting ‘‘each of fiscal years 2008 through
2012’’.
SEC. 273. UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) ELECTRIC UTILITIES.—Section 111(d) of the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(d)) is amended by adding at the end the following:
‘‘(16) INTEGRATED RESOURCE PLANNING.—Each
electric utility shall—
‘‘(A) integrate energy efficiency resources
into utility, State, and regional plans; and
‘‘(B) adopt policies establishing cost-effective
energy efficiency as a priority resource.
‘‘(17) RATE
DESIGN
MODIFICATIONS
TO
PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.—
‘‘(A) IN GENERAL.—The rates allowed to be
charged by any electric utility shall—
‘‘(i) align utility incentives with the
delivery of cost-effective energy efficiency;
and
‘‘(ii) promote energy efficiency invest-
ments.
‘‘(B) POLICY OPTIONS.—In complying with
subparagraph (A), each State regulatory author-
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ity 
and 
each 
nonregulated 
utility 
shall
consider—
‘‘(i) removing the throughput incentive
and other regulatory and management dis-
incentives to energy efficiency;
‘‘(ii) providing utility incentives for
the successful management of energy effi-
ciency programs;
‘‘(iii) including the impact on adop-
tion of energy efficiency as 1 of the goals of
retail rate design, recognizing that energy
efficiency must be balanced with other objec-
tives;
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each customer
class; and
‘‘(v) allowing timely recovery of energy
efficiency-related costs.’’.
(b) NATURAL GAS UTILITIES.—Section 303(b) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
3203(b)) is amended by adding at the end the following:
‘‘(5) ENERGY
EFFICIENCY.—Each natural gas
utility shall—
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‘‘(A) integrate energy efficiency resources
into the plans and planning processes of the nat-
ural gas utility; and
‘‘(B) adopt policies that establish energy ef-
ficiency as a priority resource in the plans and
planning processes of the natural gas utility.
‘‘(6) RATE DESIGN MODIFICATIONS TO PROMOTE
ENERGY EFFICIENCY INVESTMENTS.—
‘‘(A) IN GENERAL.—The rates allowed to be
charged by a natural gas utility shall align util-
ity incentives with the deployment of cost-effec-
tive energy efficiency.
‘‘(B) POLICY OPTIONS.—In complying with
subparagraph (A), each State regulatory author-
ity 
and 
each 
nonregulated 
utility 
shall
consider—
‘‘(i) separating fixed-cost revenue re-
covery from the volume of transportation or
sales service provided to the customer;
‘‘(ii) providing to utilities incentives
for the successful management of energy effi-
ciency programs, such as allowing utilities
to retain a portion of the cost-reducing ben-
efits accruing from the programs;
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‘‘(iii) promoting the impact on adop-
tion of energy efficiency as 1 of the goals of
retail rate design, recognizing that energy
efficiency must be balanced with other objec-
tives; and
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each customer
class.’’.
SEC. 274. ENERGY EFFICIENCY AND DEMAND RESPONSE
PROGRAM ASSISTANCE.
The Secretary shall provide technical assistance re-
garding the design and implementation of the energy effi-
ciency and demand response programs established under
this title, and the amendments made by this title, to State
energy offices, public utility regulatory commissions, and
nonregulated utilities through the appropriate national lab-
oratories of the Department of Energy.
SEC. 275. ENERGY AND ENVIRONMENTAL BLOCK GRANT.
Title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by adding
at the end the following:
‘‘SEC. 123. ENERGY AND ENVIRONMENTAL BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
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‘‘(A) a State;
‘‘(B) an eligible unit of local government
within a State; and
‘‘(C) an Indian tribe.
‘‘(2) ELIGIBLE UNIT OF LOCAL GOVERNMENT.—
The term ‘eligible unit of local government’ means—
‘‘(A) a city with a population—
‘‘(i) of at least 35,000; or
‘‘(ii) that causes the city to be 1 of the
top 10 most populous cities of the State in
which the city is located; and
‘‘(B) a county with a population—
‘‘(i) of at least 200,000; or
‘‘(ii) that causes the county to be 1 of
the top 10 most populous counties of the
State in which the county is located.
‘‘(3) SECRETARY.—The term ‘Secretary’ means
the Secretary of Energy.
‘‘(4) STATE.—The term ‘State’ means—
‘‘(A) a State;
‘‘(B) the District of Columbia;
‘‘(C) the Commonwealth of Puerto Rico; and
‘‘(D) any other territory or possession of the
United States.
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‘‘(b) PURPOSE.—The purpose of this section is to assist
State, Indian tribal, and local governments in imple-
menting strategies—
‘‘(1) to reduce fossil fuel emissions created as a
result of activities within the boundaries of the States
or units of local government in an environmentally
sustainable way that, to the maximum extent prac-
ticable, maximizes benefits for local and regional com-
munities;
‘‘(2) to reduce the total energy use of the States,
Indian tribes, and units of local government; and
‘‘(3) to improve energy efficiency in the trans-
portation sector, building sector, and any other ap-
propriate sectors.
‘‘(c) PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall provide
to eligible entities block grants to carry out eligible
activities (as specified under paragraph (2)) relating
to the implementation of environmentally beneficial
energy strategies.
‘‘(2) ELIGIBLE ACTIVITIES.—The Secretary, in
consultation with the Administrator of the Environ-
mental Protection Agency, the Secretary of Transpor-
tation, and the Secretary of Housing and Urban De-
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velopment, shall establish a list of activities that are
eligible for assistance under the grant program.
‘‘(3) ALLOCATION
TO
STATES, INDIAN
TRIBES,
AND ELIGIBLE UNITS OF LOCAL GOVERNMENT.—
‘‘(A) IN GENERAL.—Of the amounts made
available to provide grants under this subsection,
the Secretary shall allocate—
‘‘(i) 68 percent to eligible units of local
government;
‘‘(ii) 28 percent to States; and
‘‘(iii) 4 percent to Indian tribes.
‘‘(B) DISTRIBUTION TO ELIGIBLE UNITS OF
LOCAL GOVERNMENT.—
‘‘(i) IN GENERAL.—The Secretary shall
establish a formula for the distribution of
amounts under subparagraph (A)(i) to eli-
gible units of local government, taking into
account any factors that the Secretary de-
termines to be appropriate, including the
residential and daytime population of the
eligible units of local government.
‘‘(ii) CRITERIA.—Amounts shall be dis-
tributed to eligible units of local government
under clause (i) only if the eligible units of
local government meet the criteria for dis-
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tribution established by the Secretary for
units of local government.
‘‘(C) DISTRIBUTION TO STATES.—
‘‘(i) IN
GENERAL.—Of the amounts
provided to States under subparagraph
(A)(ii), the Secretary shall distribute—
‘‘(I) at least 1.25 percent to each
State; and
‘‘(II) the remainder among the
States, based on a formula, to be deter-
mined by the Secretary, that takes into
account the population of the States
and any other criteria that the Sec-
retary determines to be appropriate.
‘‘(ii) CRITERIA.—Amounts shall be dis-
tributed to States under clause (i) only if
the States meet the criteria for distribution
established by the Secretary for States.
‘‘(iii) LIMITATION ON USE OF STATE
FUNDS.—At least 40 percent of the amounts
distributed to States under this subpara-
graph shall be used by the States for the
conduct of eligible activities in nonentitle-
ment areas in the States, in accordance
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with any criteria established by the Sec-
retary.
‘‘(D) DISTRIBUTION TO INDIAN TRIBES.—
‘‘(i) IN GENERAL.—The Secretary shall
establish a formula for the distribution of
amounts under subparagraph (A)(iii) to eli-
gible Indian tribes, taking into account any
factors that the Secretary determines to be
appropriate, including the residential and
daytime population of the eligible Indian
tribes.
‘‘(ii) CRITERIA.—Amounts shall be dis-
tributed to eligible Indian tribes under
clause (i) only if the eligible Indian tribes
meet the criteria for distribution established
by the Secretary for Indian tribes.
‘‘(4) REPORT.—Not later than 2 years after the
date on which an eligible entity first receives a grant
under this section, and every 2 years thereafter, the
eligible entity shall submit to the Secretary a report
that describes any eligible activities carried out using
assistance provided under this subsection.
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums as
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‘‘(i) FORM.—Not more than 50 percent
of the non-Federal share may be in the form
of in-kind contributions.
‘‘(ii) LIMITATION.—Amounts provided
to an eligible entity under subsection (c)
shall not be used toward the non-Federal
share.
‘‘(4) MAINTENANCE OF EFFORT.—An eligible en-
tity shall provide assurances to the Secretary that
funds provided to the eligible entity under this sub-
section will be used only to supplement, not to sup-
plant, the amount of Federal, State, tribal, and local
funds otherwise expended by the eligible entity for eli-
gible activities under this subsection.
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums as
are necessary to carry out this subsection for each of
fiscal years 2008 through 2012.
‘‘(e) GRANTS TO OTHER STATES AND COMMUNITIES.—
‘‘(1) IN GENERAL.—Of the total amount of funds
that are made available each fiscal year to carry out
this section, the Secretary shall use 2 percent of the
amount to make competitive grants under this section
to States, Indian tribes, and units of local govern-
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ment that are not eligible entities or to consortia of
such units of local government.
‘‘(2) APPLICATIONS.—To be eligible for a grant
under this subsection, a State, Indian tribe, unit of
local government, or consortia described in paragraph
(1) shall apply to the Secretary for a grant to carry
out an activity that would otherwise be eligible for a
grant under subsection (c) or (d).
‘‘(3) PRIORITY.—In awarding grants under this
subsection, the Secretary shall give priority to—
‘‘(A) States with populations of less than
2,000,000; and
‘‘(B) projects that would result in signifi-
cant energy efficiency improvements, reductions
in fossil fuel use, or capital improvements.’’.
SEC. 
276. 
ENERGY 
SUSTAINABILITY 
AND 
EFFICIENCY
GRANTS FOR INSTITUTIONS OF HIGHER EDU-
CATION.
Part G of title III of the Energy Policy and Conserva-
tion Act is amended by inserting after section 399 (42
U.S.C. 371h) the following:
‘‘SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY
GRANTS FOR INSTITUTIONS OF HIGHER EDU-
CATION.
‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) ENERGY
SUSTAINABILITY.—The term ‘en-
ergy sustainability’ includes using a renewable energy
resource and a highly efficient technology for elec-
tricity generation, transportation, heating, or cooling.
‘‘(2) INSTITUTION OF HIGHER EDUCATION.—The
term ‘institution of higher education’ has the meaning
given the term in section 2 of the Energy Policy Act
of 2005 (42 U.S.C. 15801).
‘‘(b) GRANTS
FOR ENERGY EFFICIENCY IMPROVE-
MENT.—
‘‘(1) IN GENERAL.—The Secretary shall award
not more than 100 grants to institutions of higher
education to carry out projects to improve energy effi-
ciency on the grounds and facilities of the institution
of higher education, including not less than 1 grant
to an institution of higher education in each State.
‘‘(2) CONDITION.—As a condition of receiving a
grant under this subsection, an institution of higher
education shall agree to—
‘‘(A) implement a public awareness cam-
paign concerning the project in the community
in which the institution of higher education is
located; and
‘‘(B) submit to the Secretary, and make
available to the public, reports on any efficiency
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improvements, energy cost savings, and environ-
mental benefits achieved as part of a project car-
ried out under paragraph (1).
‘‘(c) GRANTS FOR INNOVATION IN ENERGY SUSTAIN-
ABILITY.—
‘‘(1) IN GENERAL.—The Secretary shall award
not more than 250 grants to institutions of higher
education to engage in innovative energy sustain-
ability projects, including not less than 2 grants to
institutions of higher education in each State.
‘‘(2) INNOVATION
PROJECTS.—An innovation
project carried out with a grant under this subsection
shall—
‘‘(A) involve—
‘‘(i) an innovative technology that is
not yet commercially available; or
‘‘(ii) available technology in an inno-
vative application that maximizes energy
efficiency and sustainability;
‘‘(B) have the greatest potential for testing
or demonstrating new technologies or processes;
and
‘‘(C) ensure active student participation in
the project, including the planning, implementa-
tion, evaluation, and other phases of the project.
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‘‘(3) CONDITION.—As a condition of receiving a
grant under this subsection, an institution of higher
education shall agree to submit to the Secretary, and
make available to the public, reports that describe the
results of the projects carried out under paragraph
(1).
‘‘(d) AWARDING OF GRANTS.—
‘‘(1) APPLICATION.—An institution of higher
education that seeks to receive a grant under this sec-
tion may submit to the Secretary an application for
the grant at such time, in such form, and containing
such information as the Secretary may prescribe.
‘‘(2) SELECTION.—The Secretary shall establish
a committee to assist in the selection of grant recipi-
ents under this section.
‘‘(e) ALLOCATION TO INSTITUTIONS OF HIGHER EDU-
CATION WITH SMALL ENDOWMENTS.—Of the amount of
grants provided for a fiscal year under this section, the Sec-
retary shall provide not less 50 percent of the amount to
institutions of higher education that have an endowment
of not more than $100,000,000, with 50 percent of the allo-
cation set aside for institutions of higher education that
have an endowment of not more than $50,000,000.
‘‘(f) GRANT AMOUNTS.—The maximum amount of
grants for a project under this section shall not exceed—
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‘‘(1) in the case of grants for energy efficiency
improvement under subsection (b), $1,000,000; or
‘‘(2) in the case of grants for innovation in en-
ergy sustainability under subsection (c), $500,000.
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 2008
through 2012.’’.
SEC. 277. ENERGY EFFICIENCY AND RENEWABLE ENERGY
WORKER TRAINING PROGRAM.
Section 1101 of the Energy Policy Act of 2005 (42
U.S.C. 16411) is amended—
(1) by redesignating subsection (d) as subsection
(e); and
(2) by inserting after subsection (c), the fol-
lowing:
‘‘(d) ENERGY EFFICIENCY AND RENEWABLE ENERGY
WORKER TRAINING PROGRAM.—
‘‘(1) PURPOSE.—It is the purpose of this sub-
section to—
‘‘(A) create a sustainable, comprehensive
public program that provides quality training
that is linked to jobs that are created through re-
newable energy and energy efficiency initiatives;