‘‘(I) at least 3 gigawatts must be elec-
tric generating units; and 
‘‘(II) up to 1 gigawatt may be indus-
trial applications, for which capture and 
sequestration of 3 million tons of carbon 
dioxide 
per 
year 
on 
an 
aggregate 
annualized basis shall be considered equiv-
alent to 1 gigawatt; 
‘‘(ii) include at least 2 electric generating 
units, each with a nameplate generating capac-
ity of 250 megawatts or greater, that capture, 
inject, and sequester carbon dioxide into geo-
logic formations other than oil and gas fields; 
and 
‘‘(iii) are capturing and sequestering in the 
aggregate at least 12 million tons of carbon di-
oxide per year, calculated on an aggregate 
annualized basis. 
‘‘(B) January 1, 2025. 
‘‘(3) If the deadline for compliance with paragraph 
(2) is January 1, 2025, the Administrator may extend the 
deadline for compliance by a covered EGU by up to 18 
months if the Administrator makes a determination, based 
on a showing by the owner or operator of the unit, that 
it will be technically infeasible for the unit to meet the 
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standard by the deadline. The owner or operator must 
submit a request for such an extension by no later than 
January 1, 2022, and the Administrator shall provide for 
public notice and comment on the extension request. 
‘‘(c) REVIEW AND REVISION OF STANDARDS.—Not 
later than 2025 and at 5-year intervals thereafter, the Ad-
ministrator shall review the standards for new covered 
EGUs under this section and shall, by rule, reduce the 
maximum carbon dioxide emission rate for new covered 
EGUs to a rate which reflects the degree of emission limi-
tation achievable through the application of the best sys-
tem of emission reduction which (taking into account the 
cost of achieving such reduction and any nonair quality 
health and environmental impact and energy require-
ments) the Administrator determines has been adequately 
demonstrated. 
‘‘(d) REPORTS.—Not later than the date 18 months 
after the date of enactment of this title and semiannually 
thereafter, the Administrator shall publish a report on the 
nameplate capacity of units (determined pursuant to sub-
section (b)(2)(A)) in commercial operation in the United 
States equipped with carbon capture and sequestration 
technology, including the information described in sub-
section (b)(2)(A) (including the cumulative generating ca-
pacity to which carbon capture and sequestration retrofit 
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projects meeting the criteria described in section 
786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied 
and the quantities of carbon dioxide captured and seques-
tered by such projects). 
‘‘(e) REGULATIONS.—Not later than 2 years after the 
date of enactment of this title, the Administrator shall 
promulgate regulations to carry out the requirements of 
this section.’’. 
Subtitle C—Clean Transportation 
SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE. 
(a) AMENDMENT OF PURPA.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621(d)) is amended by adding at the end the following: 
‘‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE IN-
FRASTRUCTURE.— 
‘‘(A) UTILITY
PLAN
FOR
INFRASTRUC-
TURE.—Each electric utility shall develop a 
plan to support the use of plug-in electric drive 
vehicles, including heavy-duty hybrid electric ve-
hicles. The plan may provide for deployment of 
electrical charging stations in public or private 
locations, including street parking, parking ga-
rages, parking lots, homes, gas stations, and 
highway rest stops. Any such plan may also in-
clude— 
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‘‘(i) battery exchange, fast charging 
infrastructure and other services; 
‘‘(ii) triggers for infrastructure de-
ployment based upon market penetration 
of plug-in electric drive vehicles; and 
‘‘(iii) such other elements as the State 
determines necessary to support plug-in 
electric drive vehicles. 
Each plan under this paragraph shall provide 
for the deployment of the charging infrastruc-
ture or other infrastructure necessary to ade-
quately support the use of plug-in electric drive 
vehicles. 
‘‘(B) 
SUPPORT
REQUIREMENTS.—Each 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
regulated utility) shall— 
‘‘(i) require that charging infrastruc-
ture deployed is interoperable with prod-
ucts of all auto manufacturers to the ex-
tent possible; and 
‘‘(ii) consider adopting minimum re-
quirements for deployment of electrical 
charging infrastructure and other appro-
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priate requirements necessary to support 
the use of plug-in electric drive vehicles. 
‘‘(C) COST RECOVERY.—Each State regu-
latory authority (in the case of each electric 
utility for which it has ratemaking authority) 
and each utility (in the case of a nonregulated 
utility) shall consider whether, and to what ex-
tent, to allow cost recovery for plans and imple-
mentation of plans. 
‘‘(D) SMART
GRID
INTEGRATION.—The 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
regulated utility) shall, in accordance with regu-
lations issued by the Federal Energy Regu-
latory Commission pursuant to section 1305(d) 
of the Energy Independence and Security Act 
of 2007— 
‘‘(i) establish any appropriate proto-
cols and standards for integrating plug-in 
electric drive vehicles into an electrical dis-
tribution system, including Smart Grid 
systems and devices as described in title 
XIII of the Energy Independence and Se-
curity Act of 2007; 
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‘‘(ii) include, to the extent feasible, 
the ability for each plug-in electric drive 
vehicle to be identified individually and to 
be associated with its owner’s electric util-
ity account, regardless of the location that 
the vehicle is plugged in, for purposes of 
appropriate billing for any electricity re-
quired to charge the vehicle’s batteries as 
well as any crediting for electricity pro-
vided to the electric utility from the vehi-
cle’s batteries; and 
‘‘(iii) review the determination made 
in response to section 1252 of the Energy 
Policy Act of 2005 in light of this section, 
including 
whether 
time-of-use 
pricing 
should be employed to enable the use of 
plug-in electric drive vehicles to contribute 
to meeting peak-load and ancillary service 
power needs.’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding the following 
at the end thereof: 
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‘‘(7)(A) Not later than 3 years after the date of en-
actment of this paragraph, each State regulatory authority 
(with respect to each electric utility for which it has rate-
making authority) and each nonregulated utility shall 
commence the consideration referred to in section 111, or 
set a hearing date for consideration, with respect to the 
standard established by paragraph (20) of section 111(d). 
‘‘(B) Not later than 4 years after the date of enact-
ment of the this paragraph, each State regulatory author-
ity (with respect to each electric utility for which it has 
ratemaking authority), and each nonregulated electric util-
ity, shall complete the consideration, and shall make the 
determination, referred to in section 111 with respect to 
the standard established by paragraph (20) of section 
111(d).’’. 
(2) FAILURE TO COMPLY.—Section 112(c) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended by adding the fol-
lowing at the end: ‘‘In the case of the standards es-
tablished by paragraph (20) of section 111(d), the 
reference contained in this subsection to the date of 
enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of such paragraph.’’. 
(3) PRIOR STATE ACTIONS.—Section 112(d) of 
the Public Utility Regulatory Policies Act of 1978 
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(16 U.S.C. 2622(d)) is amended by striking ‘‘(19)’’ 
and inserting ‘‘(20)’’ before ‘‘of section 111(d)’’. 
SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PRO-
GRAM. 
(a) DEPLOYMENT PROGRAM.—The Secretary of En-
ergy shall establish a program to deploy and integrate 
plug-in electric drive vehicles into the electricity grid in 
multiple regions. In carrying out the program, the Sec-
retary may provide financial assistance described under 
subsection (d), consistent with the goals under subsection 
(b). The Secretary shall select regions based upon applica-
tions for assistance received pursuant to subsection (c). 
(b) GOALS.—The goals of the program established 
pursuant to subsection (a) shall be— 
(1) to demonstrate the viability of a vehicle- 
based transportation system that is not overly de-
pendent on petroleum as a fuel and contributes to 
lower carbon emissions than a system based on con-
ventional vehicles; 
(2) to facilitate the integration of advanced ve-
hicle technologies into electricity distribution areas 
to improve system performance and reliability; 
(3) to demonstrate the potential benefits of co-
ordinated investments in vehicle electrification on 
personal mobility and a regional grid; 
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(4) to demonstrate protocols and standards that 
facilitate vehicle integration into the grid; and 
(5) to investigate differences in each region and 
regulatory environment regarding best practices in 
implementing vehicle electrification. 
(c) APPLICATIONS.—Any State, Indian tribe, or local 
government (or group of State, Indian tribe, or local gov-
ernments) may apply to the Secretary of Energy for finan-
cial assistance in furthering the regional deployment and 
integration into the electricity grid of plug-in electric drive 
vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology 
providers, car sharing companies or organizations, or 
other persons or entities. 
(d) USE OF FUNDS.—Pursuant to applications re-
ceived under subsection (c), the Secretary may make fi-
nancial assistance available to any applicant or joint spon-
sor of the application to be used for any of the following: 
(1) Assisting persons located in the regional de-
ployment area, including fleet owners, in the pur-
chase of new plug-in electric drive vehicles by offset-
ting in whole or in part the incremental cost of such 
vehicles above the cost of comparable conventionally 
fueled vehicles. 
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(2) Supporting the use of plug-in electric drive 
vehicles by funding projects for the deployment of 
any of the following: 
(A) Electrical charging infrastructure for 
plug-in electric drive vehicles, including battery 
exchange, fast charging infrastructure, and 
other services, in public or private locations, in-
cluding street parking, parking garages, park-
ing lots, homes, gas stations, and highway rest 
stops. 
(B) Smart Grid equipment and infrastruc-
ture, as described in title XIII of the Energy 
Independence and Security Act of 2007, to fa-
cilitate the charging and integration of plug-in 
electric drive vehicles. 
(3) Such other projects as the Secretary deter-
mines appropriate to support the large-scale deploy-
ment of plug-in electric drive vehicles in regional de-
ployment areas. 
(e) PROGRAM REQUIREMENTS.—The Secretary, in 
consultation with the Administrator and the Secretary of 
Transportation, shall determine design elements and re-
quirements of the program established pursuant to sub-
section (a), including— 
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109 
(1) the type of financial mechanism with which 
to provide financial assistance; 
(2) criteria for evaluating applications sub-
mitted under subsection (c), including the antici-
pated ability to promote deployment and market 
penetration of vehicles that are less dependent on 
petroleum as a fuel source; and 
(3) reporting requirements for entities that re-
ceive financial assistance under this section, includ-
ing a comprehensive set of performance data charac-
terizing the results of the deployment program. 
(f) INFORMATION CLEARINGHOUSE.—The Secretary 
shall, as part of the program established pursuant to sub-
section (a), collect and make available to the public infor-
mation regarding the cost, performance, and other tech-
nical data regarding the deployment and integration of 
plug-in electric drive vehicles. 
(g) AUTHORIZATION.—There are authorized to be ap-
propriated to carry out this section such sums as may be 
necessary. 
SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFAC-
TURING. 
(a) VEHICLE MANUFACTURING ASSISTANCE PRO-
GRAM.—The Secretary of Energy shall establish a pro-
gram to provide financial assistance to automobile manu-
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110 
facturers to facilitate the manufacture of plug-in electric 
drive vehicles, as defined in section 131(a)(5) of the En-
ergy Independence and Security Act of 2007, that are de-
veloped and produced in the United States. 
(b) FINANCIAL ASSISTANCE.—The Secretary of En-
ergy may provide financial assistance to an automobile 
manufacturer under the program established pursuant to 
subsection (a) for— 
(1) the reconstruction or retooling of facilities 
for the manufacture of plug-in electric drive vehicles 
that are developed and produced in the United 
States; and 
(2) if appropriate, the purchase of vehicle bat-
teries to be used in the manufacture of vehicles 
manufactured pursuant to paragraph (1). 
(c) COORDINATION
WITH
REGIONAL
DEPLOY-
MENT.—The Secretary may provide financial assistance 
under subsection (b) in conjunction with the award of fi-
nancial assistance under the large scale vehicle electrifica-
tion program established pursuant to section 122 of this 
Act. 
(d) PROGRAM REQUIREMENTS.—The Secretary shall 
determine design elements and requirements of the pro-
gram established pursuant to subsection (a), including— 
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111 
(1) the type of financial mechanism with which 
to provide financial assistance; 
(2) criteria, in addition to the criteria described 
under subsection (e), for evaluating applications for 
financial assistance; and 
(3) reporting requirements for automobile man-
ufacturers that receive financial assistance under 
this section. 
(e) CRITERIA.—In selecting recipients of financial as-
sistance from among applicant automobile manufacturers, 
the Secretary shall give preference to proposals that— 
(1) are most likely to be successful; and 
(2) are located in local markets that have the 
greatest need for the facility. 
(f) REPORTS.—The Secretary shall annually submit 
to Congress a report on the program established pursuant 
to this section. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 124. INVESTMENT IN CLEAN VEHICLES. 
(a) DEFINITIONS.—In this section: 
(1) ADVANCED
TECHNOLOGY
VEHICLES
AND 
QUALIFYING
COMPONENTS.—The terms ‘‘advanced 
technology vehicles’’ and ‘‘qualifying components’’ 
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shall have the definition of such terms in section 136 
of the Energy Independence and Security Act of 
2007, except that for purposes of this section, the 
average base year as described in such section 
136(a)(1)(C) shall be the following: 
(A) In each of the years 2012 through 
2016, model year 2009. 
(B) In 2017, the Administrator shall, not-
withstanding such section 136(a)(1)(C), deter-
mine an appropriate baseline based on techno-
logical and economic feasibility. 
(2) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 
term ‘‘plug-in electric drive vehicle’’ shall have the 
definition of such term in section 131 of the Energy 
Independence and Security Act of 2007. 
(b) DISTRIBUTION OF ALLOWANCES.—The Adminis-
trator shall, in accordance with this section, distribute 
emission allowances allocated pursuant to section 782(i) 
of the Clean Air Act not later than September 30 of 2012 
and each calendar year thereafter through 2025. 
(c) PLUG-IN ELECTRIC DRIVE VEHICLE MANUFAC-
TURING AND DEPLOYMENT.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide 
emission allowances allocated pursuant to section 
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782(i) to applicants, joint sponsors and automobile 
manufacturers pursuant to sections 122 and 123 of 
this Act. 
(2) ANNUAL AMOUNT.—In each of the years 
2012 through 2017, one-quarter of the portion of 
the emission allowances allocated pursuant to section 
782(i) of the Clean Air Act shall be available to 
carry out paragraph (1) such that— 
(A) one-eighth of the portion shall be avail-
able to carry out section 122; and, 
(B) one-eighth of the portion shall be 
available to carry out section 123. 
(3) PREFERENCE.—In directing the provision 
of emission allowances under this subsection to carry 
out section 122, the Secretary shall give preference 
to applications under section 122(c) that are jointly 
sponsored by one or more automobile manufacturers. 
(4) MULTI-YEAR COMMITMENTS.—The Admin-
istrator shall commit to providing emission allow-
ances to an applicant, joint sponsor, or automobile 
manufacturer for up to five consecutive years if— 
(A) an application under section 122 or 
123 of this Act requests a multi-year commit-
ment; 
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114 
(B) such application meets the criteria for 
support established by the Secretary of Energy 
under sections 122 or 123 of this Act; 
(C) the Administrator confirms to the Sec-
retary that emission allowances will be available 
for a multi-year commitment; 
(D) the Secretary of Energy determines 
that a multi-year commitment for such applica-
tion will advance the goals of section 122 or 
123; and 
(E) the Secretary of Energy directs the 
Administrator to make a multi-year commit-
ment. 
(5) INSUFFICIENT APPLICATIONS.—If, in any 
year, emission allowances available under paragraph 
(2) cannot be provided because of insufficient num-
bers of submitted applications that meet the criteria 
for support established by the Secretary of Energy 
under sections 122 or 123 of this Act, the remaining 
emission allowances shall be distributed according to 
subsection (d). 
(d) ADVANCED TECHNOLOGY VEHICLES.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide any 
emission allowances allocated pursuant to section 
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782(i) of the Clean Air Act that are not provided 
under subsection (c) to automobile manufacturers 
and component suppliers to pay not more than 30 
percent of the cost of— 
(A) reequipping, expanding, or establishing 
a manufacturing facility in the United States to 
produce— 
(i) qualifying advanced technology ve-
hicles; or 
(ii) qualifying components; and 
(B) engineering integration performed in 
the United States of qualifying vehicles and 
qualifying components. 
(2) PREFERENCE.—In directing the provision 
of emission allowances under this subsection during 
the years 2012 through 2017, the Secretary shall 
give preference to applications for projects that save 
the maximum number of gallons of fuel. 
SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFAC-
TURING INCENTIVE LOANS. 
Section 136(d)(1) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17013(d)(1)) is amended 
by 
striking 
‘‘$25,000,000,000’’ 
and 
inserting 
‘‘$50,000,000,000’’. 
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SEC. 126. AMENDMENT TO RENEWABLE FUELS STANDARD. 
(a) DEFINITION OF RENEWABLE BIOMASS.—Section 
211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended to read as follows: 
‘‘(I) RENEWABLE BIOMASS.—The term ‘re-
newable biomass’ means any of the following: 
‘‘(i) Plant material, including waste 
material, harvested or collected from ac-
tively managed agricultural land that was 
in cultivation, cleared, or fallow and non-
forested on January 1, 2009. 
‘‘(ii) Plant material, including waste 
material, harvested or collected from 
pastureland that was nonforested on Janu-
ary 1, 2009. 
‘‘(iii) Nonhazardous vegetative matter 
derived from waste, including separated 
yard waste, landscape right-of-way trim-
mings, construction and demolition debris 
or food waste (but not recyclable waste 
paper, painted, treated or pressurized 
wood, or wood contaminated with plastic or 
metals). 
‘‘(iv) Animal waste or animal byprod-
ucts, including products of animal waste 
digesters. 
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‘‘(v) Algae. 
‘‘(vi) Trees, brush, slash, residues, or 
any other vegetative matter removed from 
within 600 feet of any building, camp-
ground, or route designated for evacuation 
by a public official with responsibility for 
emergency preparedness, or from within 
300 feet of a paved road, electric trans-
mission line, utility tower, or water supply 
line. 
‘‘(vii) Residues from or byproducts of 
milled logs. 
‘‘(viii) Any of the following removed 
from forested land that is not Federal and 
is not high conservation priority land: 
‘‘(I) Trees, brush, slash, residues, 
interplanted energy crops, or any 
other vegetative matter removed from 
an actively managed tree plantation 
established— 
‘‘(aa) prior to January 1, 
2009; or 
‘‘(bb) on land that, as of 
January 1, 2009, was cultivated 
or fallow and non-forested. 
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118 
‘‘(II) 
Trees, 
logging 
residue, 
thinnings, cull trees, pulpwood, and 
brush removed from naturally-regen-
erated forests or other non-plantation 
forests, including for the purposes of 
hazardous fuel reduction or preventa-
tive treatment for reducing or con-
taining insect or disease infestation. 
‘‘(III) 
Logging 
residue, 
thinnings, cull trees, pulpwood, brush 
and species that are non-native and 
noxious, from stands that were plant-
ed and managed after January 1, 
2009, to restore or maintain native 
forest types. 
‘‘(IV) Dead or severely damaged 
trees removed within 5 years of fire, 
blowdown, or other natural disaster, 
and badly infested trees. 
‘‘(ix) 
Materials, 
pre-commercial 
thinnings, or removed invasive species from 
National Forest System land and public 
lands (as defined in section 103 of the 
Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1702)), including those 
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119 
that are byproducts of preventive treat-
ments 
(such 
as 
trees, 
wood, 
brush, 
thinnings, chips, and slash), that are re-
moved as part of a federally recognized 
timber sale, or that are removed to reduce 
hazardous fuels, to reduce or contain dis-
ease or insect infestation, or to restore eco-
system health, and that are— 
‘‘(I) not from components of the 
National Wilderness Preservation Sys-
tem, Wilderness Study Areas, Inven-
toried Roadless Areas, old growth or 
mature forest stands, components of 
the National Landscape Conservation 
System, National Monuments, Na-
tional Conservation Areas, Designated 
Primitive Areas, or Wild and Scenic 
Rivers corridors; 
‘‘(II) 
harvested 
in 
environ-
mentally sustainable quantities, as de-
termined by the appropriate Federal 
land manager; and 
‘‘(III) harvested in accordance 
with Federal and State law and appli-
cable land management plans.’’. 
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120 
(b) DEFINITION OF HIGH CONSERVATION PRIORITY 
LAND.—Section 211(o)(1) of the Clean Air Act (42 
U.S.C. 7545(o)) is amended by inserting the following at 
the end thereof: 
‘‘(M) 
HIGH
CONSERVATION
PRIORITY 
LAND.—The term ‘high conservation priority 
land’ means land that is not Federal land and 
is— 
‘‘(i) globally or State ranked as criti-
cally imperiled or imperiled under a State 
Natural Heritage Program; or 
‘‘(ii) old-growth or late-successional 
forest, as identified by the office of the 
State Forester or relevant State agency 
with regulatory jurisdiction over forestry 
activities.’’. 
SEC. 127. OPEN FUEL STANDARD. 
(a) FINDINGS.—The Congress finds that— 
(1) the status of oil as a strategic commodity, 
which derives from its domination of the transpor-
tation sector, presents a clear and present danger to 
the United States; 
(2) in a prior era, when salt was a strategic 
commodity, salt mines conferred national power and 
wars were fought over the control of such mines; 
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121 
(3) technology, in the form of electricity and re-
frigeration, decisively ended salt’s monopoly of meat 
preservation and greatly reduced its strategic impor-
tance; 
(4) fuel competition and consumer choice would 
similarly serve to end oil’s monopoly in the transpor-
tation sector and strip oil of its strategic status; 
(5) the current closed fuel market has allowed 
a cartel of petroleum exporting countries to inflate 
fuel prices, effectively imposing a harmful tax on the 
economy of the United States; 
(6) much of the inflated petroleum revenues the 
oil cartel earns at the expense of the people of the 
United States are used for purposes antithetical to 
the interests of the United States and its allies; 
(7) alcohol fuels, including ethanol and meth-
anol, could potentially provide significant supplies of 
additional fuels that could be produced in the United 
States and in many other countries in the Western 
Hemisphere that are friendly to the United States; 
(8) alcohol fuels can only play a major role in 
securing the energy independence of the United 
States if a substantial portion of vehicles in the 
United States are capable of operating on such fuels; 
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(9) it is not in the best interest of United 
States consumers or the United States Government 
to be constrained to depend solely upon petroleum 
resources for vehicle fuels if alcohol fuels are poten-
tially available; 
(10) existing technology, in the form of flexible 
fuel vehicles, allows internal combustion engine cars 
and trucks to be produced at little or no additional 
cost, which are capable of operating on conventional 
gasoline, alcohol fuels, or any combination of such 
fuels, as availability or cost advantage dictates, pro-
viding a platform on which fuels can compete; 
(11) the necessary distribution system for such 
alcohol fuels will not be developed in the United 
States until a substantial fraction of the vehicles in 
the United States are capable of operating on such 
fuels; 
(12) the establishment of such a vehicle fleet 
and distribution system would provide a large mar-
ket that would mobilize private resources to substan-
tially advance the technology and expand the pro-
duction of alcohol fuels in the United States and 
abroad; 
(13) the United States has an urgent national 
security interest to develop alcohol fuels technology, 
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123 
production, and distribution systems as rapidly as 
possible; 
(14) new cars sold in the United States that 
are equipped with an internal combustion engine 
should allow for fuel competition by being flexible 
fuel vehicles, and new diesel cars should be capable 
of operating on biodiesel; and 
(15) such an open fuel standard would help to 
protect the United States economy from high and 
volatile oil prices and from the threats caused by 
global instability, terrorism, and natural disaster. 
(b) OPEN
FUEL
STANDARD
FOR
TRANSPOR-
TATION.—(1) Chapter 329 of title 49, United States Code, 
is amended by adding at the end the following: 
‘‘§ 32920. Open fuel standard for transportation 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) E85.—The term ‘E85’ means a fuel mix-
ture containing 85 percent ethanol and 15 percent 
gasoline by volume. 
‘‘(2) FLEXIBLE FUEL AUTOMOBILE.—The term 
‘flexible fuel automobile’ means an automobile that 
has been warranted by its manufacturer to operate 
on gasoline, E85, and M85. 
‘‘(3) FUEL CHOICE-ENABLING AUTOMOBILE.— 
The term ‘fuel choice-enabling automobile’ means— 
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‘‘(A) a flexible fuel automobile; or 
‘‘(B) an automobile that has been war-
ranted by its manufacturer to operate on bio-
diesel. 
‘‘(4) LIGHT-DUTY
AUTOMOBILE.—The term 
‘light-duty automobile’ means— 
‘‘(A) a passenger automobile; or 
‘‘(B) a non-passenger automobile. 
‘‘(5) 
LIGHT-DUTY
AUTOMOBILE
MANUFAC-
TURER’S ANNUAL COVERED INVENTORY.—The term 
‘light-duty automobile manufacturer’s annual cov-
ered inventory’ means the number of light-duty 
automobiles powered by an internal combustion en-
gine that a manufacturer, during a given calendar 
year, manufactures in the United States or imports 
from outside of the United States for sale in the 
United States. 
‘‘(6) M85.—The term ‘M85’ means a fuel mix-
ture containing 85 percent methanol and 15 percent 
gasoline by volume. 
‘‘(b) OPEN
FUEL
STANDARD
FOR
TRANSPOR-
TATION.— 
‘‘(1) IN GENERAL.—The Secretary may promul-
gate regulations to require each light-duty auto-
mobile manufacturer’s annual covered inventory to 
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125 
be comprised of a minimum percentage of fuel-choice 
enabling automobiles, with sufficient lead time, if 
the Secretary, in coordination with the Secretary of 
Energy and the Administrator of the Environmental 
Protection Agency, determines such requirement is a 
cost-effective way to achieve the Nation’s energy 
independence and environmental objectives. The 
cost-effective determination shall consider the future 
availability of both alternative fuel supply and infra-
structure to deliver the alternative fuel to the fuel- 
choice enabling vehicles. 
‘‘(2) TEMPORARY EXEMPTION FROM REQUIRE-
MENTS.— 
‘‘(A) APPLICATION.—A manufacturer may 
request an exemption from the requirement de-
scribed in paragraph (1) by submitting an ap-
plication to the Secretary, at such time, in such 
manner, and containing such information as the 
Secretary may require by regulation. Each such 
application shall specify the models, lines, and 
types of automobiles affected. 
‘‘(B) EVALUATION.—After evaluating an 
application received from a manufacturer, the 
Secretary may at any time, under such terms 
and conditions, and to such extent as the Sec-
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126 
retary considers appropriate, temporarily ex-
empt, or renew the exemption of, a light-duty 
automobile from the requirement described in 
paragraph (1) if the Secretary determines that 
unavoidable events not under the control of the 
manufacturer prevent the manufacturer of such 
automobile from meeting its required produc-
tion volume of fuel choice-enabling automobiles, 
including— 
‘‘(i) a disruption in the supply of any 
component required for compliance with 
the regulations; 
‘‘(ii) a disruption in the use and in-
stallation by the manufacturer of such 
component; or 
‘‘(iii) application to plug-in electric 
drive vehicles causing such vehicles to fail 
to meet State air quality requirements. 
‘‘(C) 
CONSOLIDATION.—The 
Secretary 
may consolidate applications received from mul-
tiple manufacturers under subparagraph (A) if 
they are of a similar nature. 
‘‘(D) CONDITIONS.—Any exemption grant-
ed under subparagraph (B) shall be conditioned 
upon the manufacturer’s commitment to recall 
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127 
the exempted automobiles for installation of the 
omitted components within a reasonable time 
proposed by the manufacturer and approved by 
the Secretary after such components become 
available in sufficient quantities to satisfy both 
anticipated production and recall volume re-
quirements. 
‘‘(E) NOTICE.—The Secretary shall pub-
lish in the Federal Register— 
‘‘(i) notice of each application received 
from a manufacturer; 
‘‘(ii) notice of each decision to grant 
or deny a temporary exemption; and 
‘‘(iii) the reasons for granting or de-
nying such exemptions.’’. 
(2) The table of contents in chapter 329 of such title 
is amended adding at the end the following: 
‘‘32920. Open fuel standard for transportation.’’. 
SEC. 128. DIESEL EMISSIONS REDUCTION. 
Subtitle G of title VII of the Energy Policy Act of 
2005 (42 U.S.C. 16131 et seq.) is amended— 
(1) in the matter preceding clause (i) in section 
791(3)(B), by inserting ‘‘in any State’’ after ‘‘non-
profit organization or institution’’; 
(2) in section 791(9), by striking ‘‘The term 
‘State’ includes the District of Columbia.’’ and in-
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128 
serting ‘‘The term ‘State’ includes the District of 
Columbia, American Samoa, Guam, the Common-
wealth of the Northern Mariana Islands, Puerto 
Rico, and the Virgin Islands.’’; and 
(3) in section 793(c)— 
(A) in paragraph (2)(A), by striking ‘‘51 
States’’ and inserting ‘‘56 States’’; 
(B) in paragraph (2)(A), by striking ‘‘1.96 
percent’’ and inserting ‘‘1.785 percent’’; 
(C) in paragraph (2)(B), by striking ‘‘51 
States’’ and inserting ‘‘56 States’’; and 
(D) in paragraph (2)(B), by amending 
clause (ii) to read as follows: 
‘‘(ii) the amount of funds remaining 
after each State described in paragraph (1) 
receives the 1.785-percent allocation under 
this paragraph.’’. 
SEC. 129. LOAN GUARANTEES FOR PROJECTS TO CON-
STRUCT RENEWABLE FUEL PIPELINES. 
(a) DEFINITIONS.—Section 1701 of the Energy Pol-
icy Act of 2005 (42 U.S.C. 16511) is amended by adding 
at the end the following: 
‘‘(6) RENEWABLE FUEL.—The term ‘renewable 
fuel’ has the meaning given the term in section 
211(o)(1) of the Clean Air Act (42 U.S.C. 
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129 
7545(o)(1)), except that the term shall include all 
ethanol and biodiesel. 
‘‘(7) RENEWABLE FUEL PIPELINE.—The term 
‘renewable fuel pipeline’ means a common carrier 
pipeline for transporting renewable fuel.’’. 
(b) RENEWABLE FUEL PIPELINE ELIGIBILITY.— 
Section 1703(b) the Energy Policy Act of 2005 (42 U.S.C. 
16513) is amended by adding at the end the following: 
‘‘(11) Renewable fuel pipelines.’’. 
Subtitle D—State Energy and Envi-
ronment Development Accounts 
SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS. 
(a) DEFINITIONS.—In this section: 
(1) SEED ACCOUNT.—The term ‘‘SEED Ac-
count’’ means a State Energy and Environment De-
velopment Account established pursuant to this sec-
tion. 
(2) STATE ENERGY OFFICE.—The term ‘‘State 
Energy Office’’ means a State entity eligible for 
grants under part D of title III of the Energy Policy 
and Conservation Act (42 U.S.C. 6321 et seq.). 
(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a program under which a State, 
through its State Energy Office or other State agency des-
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130 
ignated by the State, may operate a State Energy and En-
vironment Development Account. 
(c) PURPOSE.—The purpose of each SEED Account 
is to serve as a common State-level repository for man-
aging and accounting for emission allowances provided to 
States designated for renewable energy and energy effi-
ciency purposes. 
(d) REGULATIONS.—Not later than one year after the 
date of enactment of this Act, the Administrator shall pro-
mulgate regulations to carry out this section, including 
regulations— 
(1) to ensure that each State operates its 
SEED Account and any subaccounts thereof effi-
ciently and in accordance with this Act and applica-
ble State and Federal laws; 
(2) to prevent waste, fraud, and abuse; 
(3) to indicate the emission allowances that 
may be deposited in a State’s SEED Account pend-
ing distribution or use; 
(4) to indicate the programs and objectives au-
thorized by Federal law for which emission allow-
ances in a SEED Account may be distributed or 
used; 
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131 
(5) to identify the forms of financial assistance 
and incentives that States may provide through dis-
tribution or use of SEED Accounts; and 
(6) to prescribe the form and content of reports 
that the States are required to submit under this 
section on the use of SEED Accounts. 
(e) OPERATION.— 
(1) DEPOSITS.— 
(A) IN GENERAL.—In the allowance track-
ing system established pursuant to section 
724(d) of the Clean Air Act, the Administrator 
shall establish a SEED Account for each State 
and place in it the allowances allocated pursu-
ant to section 782(g) of the Clean Air Act to 
be distributed to States pursuant to sections 
132 and 201 of this Act. 
(B) FINANCIAL ACCOUNT.—A State may 
create a financial account associated with its 
SEED Account to deposit, retain, and manage 
any proceeds of any sale of any allowance pro-
vided pursuant to this Act pending expenditure 
or disbursement of those proceeds for purposes 
permitted under this section. The funds in such 
an account shall not be commingled with other 
funds not derived from the sale of allowances 
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132 
provided to the State; however, loans made by 
the State from such funds pursuant to para-
graph (2)(C)(i) may be repaid into such a fi-
nancial account, including any interest charged. 
(2) WITHDRAWALS.— 
(A) IN GENERAL.—All allowances distrib-
uted pursuant to sections 132 and 201, includ-
ing the proceeds of any sale of such allowances, 
shall support renewable energy and energy effi-
ciency programs authorized or approved by the 
Federal Government. 
(B) 
DEDICATED
ALLOWANCES.—Allow-
ances distributed pursuant to sections 132 and 
201 that are required by law to be used for spe-
cific purposes for a specified period shall be 
used according to those requirements during 
that period. 
(C) UNDEDICATED ALLOWANCES.—To the 
extent that allowances distributed pursuant to 
sections 132 and 201 are not required by law 
to be used for specific purposes for a specified 
period as described in subparagraph (B), such 
allowances or the proceeds of their sale may be 
used for any of the following purposes: 
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133 
(i) LOANS.—Loans of allowances, or 
the proceeds from the sale of allowances, 
may be provided, interest on commercial 
loans may be subsidized at an interest rate 
as low as zero, and other credit support 
may be provided to support programs au-
thorized to use SEED Account allowance 
value or any other renewable energy or en-
ergy efficiency purpose authorized or ap-
proved by the Federal Government. 
(ii) GRANTS.—Grants of allowances or 
the proceeds of their sale may be provided 
to support programs authorized to use 
SEED Account allowance value or any 
other renewable energy or energy efficiency 
purpose authorized or approved by the 
Federal Government. 
(iii) OTHER FORMS OF SUPPORT.—Al-
lowances or the proceeds of the sale of al-
lowances may be provided for other forms 
of support for programs authorized to use 
SEED Account allowance value or any 
other renewable energy or energy efficiency 
purpose authorized or approved by the 
Federal Government. 
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134 
(iv) ADMINISTRATIVE COSTS.—Except 
to the extent provided in Federal law au-
thorizing or allocating allowances deposited 
in a SEED Account, not more than 5 per-
cent of the allowance value in a SEED Ac-
count in any year may be used to cover ad-
ministrative expenses of the SEED Ac-
count. 
(D) SUBACCOUNTS.—A State may request 
that the Administrator establish accounts for 
local governments that request such sub-
accounts to hold allowances distributed to local 
governments for renewable energy or energy ef-
ficiency programs authorized or approved by 
the Federal Government. 
(E) INTENDED USE PLANS.— 
(i) IN GENERAL.—After providing for 
public review and comment, each State ad-
ministering a SEED Account shall annu-
ally prepare a plan that identifies the in-
tended uses of the allowances or proceeds 
from the sale of allowances in its SEED 
Account. 
(ii) CONTENTS.—An intended use 
plan shall include— 
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135 
(I) a list of the projects or pro-
grams for which withdrawals from the 
SEED Account are intended in the 
next fiscal year that begins after the 
date of the plan, including a descrip-
tion of each project; 
(II) the relationship of each of 
the projects or programs to an identi-
fied Federal purpose authorized by 
this Act, or any other Federal statute; 
(III) the expected terms of use of 
allowance value to provide assistance; 
(IV) the criteria and methods es-
tablished for the distribution of allow-
ances or allowance value; 
(V) a description of the equiva-
lent financial value and status of the 
SEED Account; and 
(VI) a statement of the mid-term 
and long-term goals of the State for 
use of its SEED Account. 
(3) ACCOUNTABILITY AND TRANSPARENCY.— 
(A) CONTROLS
AND
PROCEDURES.—Any 
State that has a SEED Account shall establish 
fiscal controls and recordkeeping and account-
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136 
ing procedures for the SEED Account sufficient 
to ensure proper accounting during appropriate 
accounting periods for distributions into the 
SEED Account, transfers from the SEED Ac-
count, and SEED Account balances, including 
any related financial accounts. Such controls 
and procedures shall conform to generally ac-
cepted government accounting principles. Any 
State that has a SEED Account shall retain 
records for a period of at least 5 years. 
(B) AUDITS.—Any State that has a SEED 
Account shall have an annual audit conducted 
of the SEED Account by an independent public 
accountant in accordance with generally accept-
ed auditing standards, and shall transmit the 
results of that audit to the Administrator. 
(C) STATE REPORT.—Each State admin-
istering a SEED Account shall make publicly 
available and submit to the Administrator a re-
port every 2 years on its activities related to its 
SEED Account. 
(D) PUBLIC INFORMATION.—Any— 
(i) controls and procedures established 
under subparagraph (A); and 
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137 
(ii) information obtained through au-
dits conducted under subparagraph (B), 
except to the extent that it would be pro-
tected from disclosure, if it were informa-
tion held by the Federal Government, 
under section 552(b) of title 5, United 
States Code, 
shall be made publicly available. 
(E) OTHER PROTECTIONS.—The Adminis-
trator shall require such additional procedures 
and protections as are necessary to ensure that 
any State that has a SEED Account will oper-
ate the SEED Account in an accountable and 
transparent manner. 
(f) REQUIREMENTS FOR ELIGIBILITY.—A State’s eli-
gibility to receive allowances in its SEED Account shall 
depend on that State’s compliance with the requirements 
of this Act (and the amendments made by this Act). 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
such sums as may be necessary for SEED Account oper-
ations. 
SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND 
ENERGY EFFICIENCY PROGRAMS. 
(a) DEFINITIONS.—For purposes of this section: 
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138 
(1) 
ALLOWANCE.—The 
term 
‘‘allowance’’ 
means an emission allowance established under sec-
tion 721 of the Clean Air Act (as added by section 
311 of this Act). 
(2) COST-EFFECTIVE.—The term ‘‘cost-effec-
tive’’, with respect to an energy efficiency program, 
means that the program meets the Total Resource 
Cost Test, which requires that the net present value 
of economic benefits over the life of the program or 
measure, including avoided supply and delivery costs 
and deferred or avoided investments, is greater than 
the net present value of the economic costs over the 
life of the program, including program costs and in-
cremental costs borne by the energy consumer. 
(3) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ shall have the 
meaning given that term in section 610 of the Public 
Utility Regulatory Policies Act of 1978 (as added by 
section 101 of this Act). 
(4) VINTAGE YEAR.—The term ‘‘vintage year’’ 
shall the meaning given that term in section 700 of 
the Clean Air Act (as added by section 311 of this 
Act). 
(b) DISTRIBUTION AMONG STATES.—Not later than 
September 30 of each calendar year from 2011 through 
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139 
2049, the Administrator shall, in accordance with this sec-
tion, distribute allowances allocated pursuant to section 
782(g)(1) of the Clean Air Act (as added by section 311 
of this Act) for the following vintage year. The Adminis-
trator shall distribute 0.5 percent of such allowances pur-
suant to section 133 of this Act. The Administrator shall 
distribute the remaining allowances to States for renew-
able energy and energy efficiency programs to be deposited 
in and administered through the State Energy and Envi-
ronment Development (SEED) Accounts established pur-
suant to section 131. The Administrator shall distribute 
allowances among the States under this section each year 
in accordance with the following formula: 
(1) One third of the allowances shall be divided 
equally among the States. 
(2) One third of the allowances shall be distrib-
uted ratably among the States based on the popu-
lation of each State, as contained in the most recent 
reliable census data available from the Bureau of the 
Census, Department of Commerce, for all States at 
the time the Administrator calculates the formula 
for distribution. 
(3) One third of the allowances for shall be dis-
tributed ratably among the States on the basis of 
the energy consumption of each State as contained 
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140 
in the most recent State Energy Data Report avail-
able from the Energy Information Administration 
(or such alternative reliable source as the Adminis-
trator may designate). 
(c) USES.—The allowances distributed to each State 
pursuant to this section shall be used exclusively in accord-
ance with the following requirements: 
(1) Not less than 12.5 percent shall be distrib-
uted by the State to units of local government within 
such State to be used exclusively to support the en-
ergy efficiency and renewable energy purposes listed 
in paragraphs (2) and (3). 
(2) Not less than 20 percent shall be used ex-
clusively for the following energy efficiency purposes, 
provided that not less than 1 percent shall be used 
for the purpose described in subparagraph (D) and 
not less than 5 percent shall be used for the purpose 
described in subparagraph (E): 
(A) Implementation and enforcement of 
building codes adopted in compliance with sec-
tion 201. 
(B) Implementation of the energy efficient 
manufactured homes program established pur-
suant to section 203. 
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141 
(C) Implementation of the building energy 
performance labeling program established pur-
suant to section 204. 
(D) Low-income community energy effi-
ciency programs that are consistent with the 
grant program established under section 264 of 
this Act. 
(E) Implementation of the Retrofit for En-
ergy and Environmental Performance (REEP) 
program established pursuant to section 202. 
(3) Not less than 20 percent shall be used ex-
clusively for capital grants, tax credits, production 
incentives, loans, loan guarantees, forgivable loans, 
and interest rate buy-downs for— 
(A) re-equipping, expanding, or estab-
lishing a manufacturing facility that receives 
certification from the Secretary of Energy pur-
suant to section 1302 of the American Recovery 
and Reinvestment Act of 2009 for the produc-
tion of— 
(i) property designed to be used to 
produce energy from renewable energy 
sources; and 
(ii) electricity storage systems; 
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(B) deployment of technologies to generate 
electricity from renewable energy sources; and 
(C) deployment of facilities or equipment, 
such as solar panels, to generate electricity or 
thermal energy from renewable energy re-
sources in and on buildings in an urban envi-
ronment. 
(4) The remaining 47.5 percent shall be used 
exclusively for any of the following purposes: 
(A) Energy efficiency purposes described 
in paragraph (2). 
(B) Renewable energy purposes described 
in paragraph (3)(B) and (C). 
(C) Cost-effective energy efficiency pro-
grams for end-use consumers of electricity, nat-
ural gas, home heating oil, or propane, includ-
ing, where appropriate, programs or mecha-
nisms administered by local governments and 
entities other than the State. 
(D) Enabling the development of a Smart 
Grid (as described in section 1301 of the En-
ergy Independence and Security Act of 2007 
(42 U.S.C. 17381)) for State, local government, 
and other public buildings and facilities, includ-
ing integration of renewable energy resources 
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143 
and distributed generation, demand response, 
demand side management, and systems anal-
ysis. 
(E) Providing the non-Federal share of 
support for surface transportation capital 
projects under— 
(i) sections 5307, 5308, 5309, 5310, 
5311 and 5319 of title 49, United States 
Code; and 
(ii) sections 142, 146, and 149 of title 
23, United States Code, 
provided that not more than 10 percent of al-
lowances distributed to each State pursuant to 
this section shall be used for such purpose. 
(5) For any allowances used for the purpose de-
scribed in paragraph (4)(C), the State shall— 
(A) prioritize expansion of existing energy 
efficiency programs approved and overseen by 
the State or the appropriate State regulatory 
authority; and 
(B) demonstrate that such allowances have 
been used to supplement, and not to supplant, 
existing and otherwise available State, local, 
and ratepayer funding for such purpose. 
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144 
(d) REPORTING.—Each State receiving allowances 
under this section shall include in its biennial reports re-
quired under section 131, in accordance with such require-
ments as the Administrator may prescribe 
(1) a list of entities receiving allowances or al-
lowance value under this section, including entities 
receiving such allowances or allowance value from 
units of local government pursuant to subsection 
(c)(1); 
(2) the amount and nature of allowances or al-
lowance value received by each such recipient; 
(3) the specific purposes for which such allow-
ances or allowance value was conveyed to each such 
recipient; 
(4) documentation of the amount of energy sav-
ings, emission reductions, renewable energy deploy-
ment, and new or retooled manufacturing capacity 
resulting from the use of such allowances or allow-
ance value; and 
(5) for any energy efficiency program supported 
under subsection (c)(4)(C)— 
(A) an assessment demonstrating the cost- 
effectiveness of such program; and 
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(B) a demonstration that the requirements 
set forth in subsection (c)(5) have been satis-
fied. 
(e) ENFORCEMENT.—If the Administrator deter-
mines that a State is not in compliance with this section, 
the Administrator may withhold up to twice the number 
of allowances that the State failed to use in accordance 
with the requirements of this section, that such State 
would otherwise be eligible to receive under this section 
in later years. Allowances withheld pursuant to this sub-
section shall be distributed among the remaining States 
in accordance with the requirements of subsection (b). 
SEC. 133. SUPPORT OF INDIAN RENEWABLE ENERGY AND 
ENERGY EFFICIENCY PROGRAMS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ALLOWANCE; 
COST-EFFECTIVE; 
RENEW-
ABLE ENERGY RESOURCE.—The terms ‘‘allowance’’, 
‘‘cost-effective’’, and ‘‘renewable energy resource’’ 
have the meaning given those terms in section 132 
of this Act. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25. U.S.C. 450b). 
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146 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) ESTABLISHMENT.—Not later than 18 months 
after the date of enactment of this Act, the Secretary 
shall, in consultation with the Administrator and the Sec-
retary of the Interior, promulgate regulations establishing 
a program to distribute allowances to Indian tribes on a 
competitive basis for the following purposes: 
(1) ENERGY
EFFICIENCY.—Cost-effective en-
ergy efficiency programs for end-use consumers of 
electricity, natural gas, home heating oil, or propane. 
(2) 
RENEWABLE
ENERGY.—Deployment 
of 
technologies to generate electricity from renewable 
energy resources. 
(c) REQUIREMENTS.—The regulations promulgated 
pursuant to subsection (b) shall prescribe design elements 
and requirements of the program established under this 
section, including— 
(1) objective criteria for evaluating proposals 
submitted by Indian tribes, and for selecting projects 
and programs to receive support, under this section; 
(2) reporting requirements for Indian tribes 
that receive allowances under this section; and 
(3) other appropriate elements and require-
ments. 
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(d) DISTRIBUTION.—The Administrator shall, at the 
direction of the Secretary, distribute to Indian tribes al-
lowances that are set aside, pursuant to section 132, for 
use under this section. 
Subtitle E—Smart Grid 
Advancement 
SEC. 141. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term ‘‘applicable baseline’’ means the 
average of the highest three annual peak demands a 
load-serving entity has experienced during the 5 
years immediately prior to the date of enactment of 
this Act. 
(2) The term ‘‘Commission’’ means Federal En-
ergy Regulatory Commission. 
(3) The term ‘‘load-serving entity’’ means an 
entity that provides electricity directly to retail con-
sumers with the responsibility to assure power qual-
ity and reliability, including such entities that are 
investor-owned, publicly owned, owned by rural elec-
tric cooperatives, or other entities. 
(4) The term ‘‘peak demand’’ means the high-
est point of electricity demand, net of any distrib-
uted electricity generation or storage from sources 
on the load-serving entity’s customers’ premises, 
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during any hour on the system of a load serving en-
tity during a calendar year, expressed in Megawatts 
(MW), or more than one such high point as a func-
tion of seasonal demand changes. 
(5) The term ‘‘peak demand reduction’’ means 
the reduction in annual peak demand as compared 
to a previous baseline year or period, expressed in 
Megawatts (MW), whether accomplished by— 
(A) diminishing the end-use requirements 
for electricity; 
(B) use of locally stored energy or gen-
erated electricity to meet those requirements 
from distributed resources on the load-serving 
entity’s customers’ premises and without use of 
high-voltage transmission; or 
(C) energy savings from efficient operation 
of the distribution grid resulting from the use 
of a Smart Grid. 
(6) The term ‘‘peak demand reduction plan’’ 
means a plan developed by or for a load-serving enti-
ty that it will implement to meet its peak demand 
reduction goals. 
(7) The term ‘‘peak period’’ means the time pe-
riod on the system of a load-serving entity relative 
to peak demand that may warrant special measures 
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149 
or electricity resources to maintain system reliability 
while meeting peak demand. 
(8) The term ‘‘Secretary’’ means the Secretary 
of Energy. 
(9) The term ‘‘Smart Grid’’ has the meaning 
provided by section 1301 of the Energy Independ-
ence and Security Act of 2007 (15 U.S.C. 17381). 
SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVE-
NESS IN PRODUCTS. 
(a) ASSESSMENT.—Within one year after the date of 
enactment of this Act, the Secretary and the Adminis-
trator shall each assess the potential for cost-effective in-
tegration of Smart Grid technologies and capabilities in 
all products that are reviewed by the Department of En-
ergy and the Environmental Protection Agency, respec-
tively, for potential designation as Energy Star products. 
(b) ANALYSIS.—(1) Within 2 years after the date of 
enactment of this Act, the Secretary and the Adminis-
trator shall each prepare an analysis of the potential en-
ergy savings, greenhouse gas emission reductions, and 
electricity cost savings that could accrue for each of the 
products identified by the assessment in subsection (a) in 
the following optimal circumstances: 
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150 
(A) The products possessed Smart Grid capa-
bility and interoperability that is tested and proven 
reliable. 
(B) The products were utilized in an electricity 
utility service area which had Smart Grid capability 
and offered customers rate or program incentives to 
use the products. 
(C) The utility’s rates reflected national average 
costs, including average peak and valley seasonal 
and daily electricity costs. 
(D) Consumers using such products took full 
advantage of such capability. 
(E) The utility avoided incremental investments 
and rate increases related to such savings. 
(2) The analysis under paragraph (1) shall be consid-
ered the ‘‘best case’’ Smart Grid analysis. On the basis 
of such an analysis for each product, the Secretary and 
the Administrator shall determine whether the installation 
of Smart Grid capability for such a product would be cost 
effective. For purposes of this paragraph, the term ‘‘cost 
effective’’ means that the cumulative savings from using 
the product under the best case Smart Grid circumstances 
for a period of one-half of the product’s expected useful 
life will be greater than the incremental cost of the Smart 
Grid features included in the product. 
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151 
(3) To the extent that including Smart Grid capa-
bility in any products analyzed under paragraph (2) is 
found to be cost effective in the best case, the Secretary 
and the Administrator shall, not later than 3 years after 
the date of enactment of this Act take each of the fol-
lowing actions: 
(A) Inform the manufacturer of such product of 
such finding of cost effectiveness. 
(B) Assess the potential contributions the devel-
opment and use of products with Smart Grid tech-
nologies bring to reducing peak demand and pro-
moting grid stability. 
(C) Assess the potential national energy savings 
and electricity cost savings that could be realized if 
Smart Grid potential were installed in the relevant 
products reviewed by the Energy Star program. 
(D) Assess and identify options for providing 
consumers information on products with Smart Grid 
capabilities, including the necessary conditions for 
cost-effective savings. 
(E) Submit a report to Congress summarizing 
the results of the assessment for each class of prod-
ucts, and presenting the potential energy and green-
house gas savings that could result if Smart Grid 
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capability were installed and utilized on such prod-
ucts. 
SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON AP-
PLIANCE ENERGY GUIDE LABELS. 
Section 324(a)(2) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6294(a)(2)) is amended by adding the 
following at the end: 
‘‘(J)(i) Not later than 1 year after the date 
of enactment of this subparagraph, the Federal 
Trade Commission shall initiate a rulemaking 
to consider making a special note in a promi-
nent manner on any ENERGY GUIDE label 
for any product actually including Smart Grid 
capability that— 
‘‘(I) Smart Grid capability is a fea-
ture of that product; 
‘‘(II) the use and value of that feature 
depended on the Smart Grid capability of 
the utility system in which the product was 
installed and the active utilization of that 
feature by the customer; and 
‘‘(III) on a utility system with Smart 
Grid capability, the use of the product’s 
Smart Grid capability could reduce the 
customer’s cost of the product’s annual op-
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153 
eration by an estimated dollar amount 
range representing the result of incre-
mental energy and electricity cost savings 
that would result from the customer taking 
full advantage of such Smart Grid capa-
bility. 
‘‘(ii) Not later than 3 years after the date 
of enactment of this subparagraph, the Com-
mission shall complete the rulemaking initiated 
under clause (i).’’. 
SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS. 
(a) GOALS.—Not later than one year after the date 
of enactment of this section, each load-serving entity, or, 
at the option of the State, each State with respect to load- 
serving entities that the State regulates, shall determine 
and publish peak demand reduction goals for any load- 
serving entities that have an applicable baseline in excess 
of 250 megawatts. 
(b) BASELINES.—(1) The Commission, in consulta-
tion with the Secretary and the Administrator, shall de-
velop and publish, after an opportunity for public com-
ment, but not later than 180 days after enactment of this 
section, a methodology to provide for adjustments or nor-
malization to a load-serving entity’s applicable baseline 
over time to reflect changes in the number of customers 
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154 
served, weather conditions, general economic conditions, 
and any other appropriate factors external to peak de-
mand management, as determined by the Commission. 
(2) The Commission shall support load-serving enti-
ties (including any load-serving entities with an applicable 
baseline of less than 250 megawatts that volunteer to par-
ticipate in achieving the purposes of this section) in deter-
mining their applicable baselines, and in developing their 
peak demand reduction goals. 
(3) The Secretary, in consultation with the Commis-
sion, the Administrator, and the North American Electric 
Reliability Corporation, shall develop a system and rules 
for measurement and verification of demand reductions. 
(c) PEAK DEMAND REDUCTION GOALS.—(1) Peak 
demand reduction goals may be established for an indi-
vidual load-serving entity, or, at the determination of a 
State, tribal, or regional entity, by that State, tribal, or 
regional entity for a larger region that shares a common 
system peak demand and for which peak demand reduc-
tion measures would offer regional benefit. 
(2) A State or regional entity establishing peak de-
mand reduction goals shall cooperate, as necessary and 
appropriate, with the Commission, the Secretary, State 
regulatory commissions, State energy offices, the North 
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American Electric Reliability Corporation, and other rel-
evant authorities. 
(3) In determining the applicable peak demand reduc-
tion goals— 
(A) States and other jurisdictional entities may 
utilize the results of the 2009 National Demand Re-
sponse Potential Assessment, as authorized by sec-
tion 571 of the National Energy Conservation Policy 
Act (42 U.S.C. 8279); and 
(B) the relative economics of peak demand re-
duction and generation required to meet peak de-
mand shall be evaluated in a neutral and objective 
manner. 
(4) The applicable peak demand reduction goals shall 
provide that— 
(A) load-serving entities will reduce or mitigate 
peak demand by a minimum percentage amount 
from the applicable baseline to a lower peak demand 
during calendar year 2012; 
(B) load-serving entities will reduce or mitigate 
peak demand by a minimum percentage greater 
amount from the applicable baseline to a lower peak 
demand during calendar year 2015; and 
(C) the minimum percentage reductions estab-
lished as peak demand reduction goals shall be the 
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maximum reductions that are realistically achievable 
with an aggressive effort to deploy Smart Grid and 
peak demand reduction technologies and methods, 
including but not limited to those listed in sub-
section (d). 
(d) PLAN.—Each load-serving entity shall prepare a 
peak demand reduction plan that demonstrates its ability 
to meet each applicable goal by any or a combination of 
the following options: 
(1) Direct reduction in megawatts of peak de-
mand through— 
(A) energy efficiency measures (including 
efficient transmission wire technologies which 
significantly reduce line loss compared to tradi-
tional wire technology) with reliable and contin-
ued application during peak demand periods; or 
(B) use of a Smart Grid. 
(2) 
Demonstration 
that 
an 
amount 
of 
megawatts equal to a stated portion of the applicable 
goal is contractually committed to be available for 
peak reduction through one or more of the following: 
(A) Megawatts enrolled in demand re-
sponse programs. 
(B) Megawatts subject to the ability of a 
load-serving entity to call on demand response 
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programs, smart appliances, smart electricity or 
energy storage devices, distributed generation 
resources on the entity’s customers’ premises, 
or other measures directly capable of actively, 
controllably, reliably, and dynamically reducing 
peak demand (‘‘dynamic peak management con-
trol’’). 
(C) Megawatts available from distributed 
dynamic electricity or energy storage under 
agreement with the owner of that storage. 
(D) 
Megawatts 
committed 
from 
dispatchable 
distributed 
generation 
dem-
onstrated to be reliable under peak period con-
ditions and in compliance with air quality regu-
lations. 
(E) Megawatts available from smart appli-
ances and equipment with Smart Grid capa-
bility available for direct control by the utility 
through agreement with the customer owning 
the appliances or equipment or with a third 
party pursuant to such agreements. 
(F) Megawatts from a demonstrated and 
assured minimum of distributed solar electric 
generation capacity in instances where peak pe-
riod and peak demand conditions are directly 
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158 
related to solar radiation and accompanying 
heat. 
(3) If any of the methods listed in subpara-
graph (C), (D), or (E) of paragraph (2) are relied 
upon to meet its peak demand reduction goals, the 
load-serving entity must demonstrate this capability 
by operating a test during the applicable calendar 
year. 
(4) Nothing in this section shall require the 
publication in peak demand reduction goals or in 
any peak demand reduction plan of any information 
that is confidential for competitive or other reasons 
or that identifies individual customers. 
(e) EXISTING AUTHORITY AND REQUIREMENTS.— 
Nothing in this section diminishes or supersedes any au-
thority of a State or political subdivision of a State to 
adopt or enforce any law or regulation respecting peak de-
mand management, demand response, distributed energy 
storage, use of distributed generation, or the regulation 
of load-serving entities. The Commission, in consultation 
with States and Indian tribes having such peak manage-
ment, demand response and distributed energy storage 
programs, shall to the maximum extent practicable, facili-
tate coordination between the Federal program and such 
State and tribal programs. 
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159 
(f) RELIEF.—The Commission may, for good cause, 
grant relief to load-serving entities from the requirements 
of this section. 
(g) OTHER LAWS.—Except as provided in sub-
sections (e) and (f), no law or regulation shall relieve any 
person of any requirement otherwise applicable under this 
section. 
(h) COMPLIANCE.—(1) The Commission shall within 
one year after the date of enactment of this Act establish 
a public website where the Commission will provide infor-
mation and data demonstrating compliance by States, In-
dian tribes regional entities, and load-serving entities with 
this section, including the success of load-serving entities 
in meeting applicable peak demand reduction goals. 
(2) The Commission shall, by April 1 of each year 
beginning in 2012, provide a report to Congress on com-
pliance with this section and success in meeting applicable 
peak demand reduction goals and, as appropriate, shall 
make recommendations as to how to increase peak de-
mand reduction efforts. 
(3) The Commission shall note in each such report 
any State, political subdivision of a State, or load-serving 
entity that has failed to comply with this section, or is 
not a part of any region or group of load-serving entities 
serving a region that has complied with this section. 
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160 
(4) The Commission shall have and exercise the au-
thority to take reasonable steps to modify the process of 
establishing peak demand reduction goals and to accept 
adjustments to them as appropriate when sought by load- 
serving entities. 
(i) ASSISTANCE AND FUNDING.— 
(1) ASSISTANCE TO STATES AND TRIBES.—Any 
costs incurred by States for activities undertaken 
pursuant to this section shall be supported by the 
use of emission allowances allocated to the States’ 
SEED Accounts or to the tribes pursuant to section 
132 of this Act. To the extent that a State provides 
allowances to local governments within the State to 
implement this program, that shall be deemed a dis-
tribution of such allowances to units of local govern-
ment pursuant to subsection (c)(1) of that section. 
(2) FUNDING.—There are authorized to be ap-
propriated such sums as may be necessary to the 
Commission, the Secretary, and the Administrator to 
carry out the provisions of this section. 
SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUB-
LIC INFORMATION PROGRAM TO INCLUDE 
SMART GRID INFORMATION. 
(a) IN GENERAL.—Section 134 of the Energy Policy 
Act of 2005 (42 U.S.C. 15832) is amended as follows: 
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161 
(1) By amending the section heading to read as 
follows: ‘‘ENERGY EFFICIENCY AND SMART GRID 
PUBLIC INFORMATION INITIATIVE’’. 
(2) In paragraph (1) of subsection (a) by strik-
ing ‘‘reduce energy consumption during the 4-year 
period beginning on the date of enactment of this 
Act’’ and inserting ‘‘increase energy efficiency and 
to adopt Smart Grid technology and practices’’. 
(3) In paragraph (2) of subsection (a) by strik-
ing ‘‘benefits to consumers of reducing’’ and insert-
ing ‘‘economic and environmental benefits to con-
sumers and the United States of optimizing’’. 
(4) In subsection (a) by inserting at the begin-
ning of paragraph (3) ‘‘the effect of energy effi-
ciency and Smart Grid capability in reducing energy 
and electricity prices throughout the economy, to-
gether with’’. 
(5) In subsection (a)(4) by redesignating sub-
paragraph (D) as (E), by striking ‘‘and’’ at the end 
of subparagraph (C), and by inserting after subpara-
graph (C) the following: 
‘‘(D) purchasing and utilizing equipment 
that includes Smart Grid features and capa-
bility; and’’. 
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(6) In subsection (c), by striking ‘‘Not later 
than July 1, 2009,’’ and inserting, ‘‘For each year 
when appropriations pursuant to the authorization 
in this section exceed $10,000,000,’’. 
(7) In subsection (d) by striking ‘‘2010’’ and 
inserting ‘‘2020’’. 
(8) In subsection (e) by striking ‘‘2010’’ and in-
serting ‘‘2020’’. 
(b) TABLE OF CONTENTS.—The item relating to sec-
tion 134 in the table of contents for the Energy Policy 
Act of 2005 (42 U.S.C. 15801 and following) is amended 
to read as follows: 
‘‘Sec. 134. Energy efficiency and Smart Grid public information initiative.’’. 
SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLI-
ANCE REBATE PROGRAM. 
(a) AMENDMENTS.—Section 124 of the Energy Pol-
icy Act of 2005 (42 U.S.C. 15821) is amended as follows: 
(1) By amending the section heading to read as 
follows: ‘‘ENERGY EFFICIENT AND SMART AP-
PLIANCE REBATE PROGRAM.’’. 
(2) By redesignating paragraphs (4) and (5) of 
subsection (a) as paragraphs (5) and (6), respec-
tively, and inserting after paragraph (3) the fol-
lowing: 
‘‘(4) SMART APPLIANCE.—The term ‘smart ap-
pliance’ means a product that the Administrator of 
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the Environmental Protection Agency or the Sec-
retary of Energy has determined qualifies for such 
a designation in the Energy Star program pursuant 
to section 142 of the American Clean Energy and 
Security Act of 2009, or that the Secretary or the 
Administrator has separately determined includes 
the relevant Smart Grid capabilities listed in section 
1301 of the Energy Independence and Security Act 
of 2007 (15 U.S.C. 17381).’’. 
(3) In subsection (b)(1) by inserting ‘‘and 
smart’’ after ‘‘efficient’’ and by inserting after 
‘‘products’’ the first place it appears ‘‘, including 
products designated as being smart appliances’’. 
(4) In subsection (b)(3), by inserting ‘‘the ad-
ministration of’’ after ‘‘carry out’’. 
(5) In subsection (d), by inserting ‘‘the admin-
istration of’’ after ‘‘carrying out’’ and by inserting 
‘‘, and up to 100 percent of the value of the rebates 
provided pursuant to this section’’ before the period 
at the end. 
(6) In subsection (e)(3), by inserting ‘‘, with 
separate consideration as applicable if the product is 
also a smart appliance,’’ after ‘‘Energy Star prod-
uct’’ the first place it appears and by inserting ‘‘or 
smart appliance’’ before the period at the end. 
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164 
(7) 
In 
subsection 
(f), 
by 
striking 
‘‘$50,000,000’’ through the period at the end and 
inserting ‘‘$100,000,000 for each fiscal year from 
2010 through 2015.’’. 
(b) TABLE OF CONTENTS.—The item relating to sec-
tion 124 in the table of contents for the Energy Policy 
Act of 2005 (42 U.S.C. 15801 and following) is amended 
to read as follows: 
‘‘Sec. 124. Energy efficient and smart appliance rebate program.’’. 
Subtitle F—Transmission Planning 
SEC. 151. TRANSMISSION PLANNING. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding after section 216 the following 
new section: 
‘‘SEC. 216A. TRANSMISSION PLANNING. 
‘‘(a) FEDERAL POLICY.— 
‘‘(1) OBJECTIVES.—It is the policy of the 
United States that regional electric grid planning 
should facilitate the deployment of renewable and 
other zero-carbon energy sources for generating elec-
tricity to reduce greenhouse gas emissions while en-
suring reliability, reducing congestion, ensuring 
cyber-security, and providing for cost-effective elec-
tricity services throughout the United States. 
‘‘(2) OPTIONS.—In addition to the policy under 
paragraph (1), it is the policy of the United States 
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165 
that regional electric grid planning to meet these ob-
jectives should take into account all significant de-
mand-side and supply-side options, including energy 
efficiency, distributed generation, renewable energy 
and zero-carbon electricity generation technologies, 
smart-grid technologies and practices, demand re-
sponse, electricity storage, voltage regulation tech-
nologies, high capacity conductors with at least 25 
percent greater efficiency than traditional ACSR 
(aluminum stranded conductors steel reinforced) 
conductors, superconductor technologies, under-
ground transmission technologies, and new conven-
tional electric transmission capacity and corridors. 
‘‘(b) PLANNING.— 
‘‘(1) PLANNING PRINCIPLES.—Not later than 1 
year after the date of enactment of this section, the 
Commission shall adopt, after notice and oppor-
tunity for comment, national electricity grid plan-
ning principles derived from the Federal policy es-
tablished under subsection (a) to be applied in ongo-
ing and future transmission planning that may im-
plicate interstate transmission of electricity. 
‘‘(2) REGIONAL
PLANNING
ENTITIES.—Not 
later than 3 months after the date of adoption by 
the Commission of national electricity grid planning 
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166 
principles pursuant to paragraph (1), entities that 
conduct or may conduct transmission planning pur-
suant to State, tribal, or Federal law or regulation, 
including States, Indian tribes, entities designated 
by States and Indian tribes, Federal Power Mar-
keting Administrations, public utility transmission 
providers, operators and owners, regional organiza-
tions, and electric utilities, and that are willing to 
incorporate the national electricity grid planning 
principles adopted by the Commission in their elec-
tric grid planning, shall identify themselves and the 
regions for which they propose to develop plans to 
the Commission. 
‘‘(3) COORDINATION OF REGIONAL PLANNING 
ENTITIES.—The Commission shall encourage re-
gional planning entities described under paragraph 
(2) to cooperate and coordinate across regions and 
to harmonize regional electric grid planning with 
planning in adjacent or overlapping jurisdictions to 
the maximum extent feasible. The Commission shall 
work with States, Indian tribes, Federal Power Mar-
keting Administrations, public utilities transmission 
providers, load-serving entities, transmission opera-
tors, Regional Transmission Organizations, Inde-
pendent System Operators, and other organizations 
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167 
to resolve any conflict or competition among pro-
posed planning entities in order to build consensus 
and promote the Federal policy established under 
subsection (a). The Commission shall seek to ensure 
that planning that is consistent with the national 
electricity grid planning principles adopted pursuant 
to paragraph (1) is conducted in all regions of the 
United States and the territories. 
‘‘(4) RELATION TO EXISTING PLANNING POL-
ICY.—In implementing the Federal policy established 
under subsection (a), the Commission shall— 
‘‘(A) incorporate any ongoing planning ef-
forts undertaken pursuant to section 217; 
‘‘(B) consult with and invite the participa-
tion of the Secretary of Energy in relationship 
to the Secretary’s duties pursuant to section 
216; and 
‘‘(C) coordinate with the Secretaries of the 
Interior and Agriculture and with Indian tribes 
in carrying out the Secretaries’ or tribal govern-
ments’ existing responsibilities for the planning 
or siting of transmission facilities on Federal or 
tribal lands. 
‘‘(5) ASSISTANCE.— 
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168 
‘‘(A) IN GENERAL.—The Commission shall 
provide support to and participate in the re-
gional grid planning processes conducted by re-
gional planning entities. The Commission may 
provide planning resources and assistance as re-
quired or as requested by regional planning en-
tities, including system data, cost information, 
system analysis, technical expertise, modeling 
support, dispute resolution services, and other 
assistance to regional planning entities, as ap-
propriate. 
‘‘(B) AUTHORIZATION.—There are author-
ized to be appropriated such sums as may be 
necessary to carry out this paragraph. 
‘‘(6) CONFLICT
RESOLUTION.—In the event 
that regional grid plans conflict, the Commission 
shall assist the regional planning entities in resolving 
such conflicts in order to achieve the objectives of 
the Federal policy established under subsection (a). 
‘‘(7) SUBMISSION OF PLANS.—The Commission 
shall require regional planning entities to submit ini-
tial regional electric grid plans to the Commission 
not later than 18 months after the date the Commis-
sion promulgates national electricity grid planning 
principles pursuant to paragraph (1) and to update 
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169 
such plans not less than every 3 years thereafter. 
Regional electric grid plans should, in general, be 
developed from sub-regional requirements and plans, 
including planning input reflecting individual utility 
service areas. Regional plans may then in turn be 
combined into larger regional plans, up to inter-
connection-wide and national plans, as appropriate 
and necessary as determined by the Commission. 
The Commission shall review such plans for consist-
ency with the national grid planning principles and 
may return a plan to one or more planning entities 
for further consideration, along with the Commis-
sion’s own recommendations for resolution of any 
conflict or for improvement. To the extent prac-
ticable, all plans submitted to the Commission shall 
be public documents and available on the Commis-
sion’s website. 
‘‘(8) MULTI-REGIONAL MEETINGS.—As regional 
grid plans are submitted to the Commission, the 
Commission may convene multi-regional meetings to 
discuss regional grid plan consistency and integra-
tion, including requirements for multi-regional 
projects, and to resolve any conflicts that emerge 
from such multi-regional projects. The Commission 
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170 
shall provide its recommendations for eliminating 
any inter-regional conflicts. 
‘‘(9) REPORT TO CONGRESS.—Not later than 3 
years after the date of enactment of this section, the 
Commission shall provide a report to Congress con-
taining the results of the initial regional grid plan-
ning process, including summaries of the adopted re-
gional plans. The Commission shall provide an elec-
tronic version of its report on its website with links 
to all regional and sub-regional plans taken into ac-
count. The Commission shall note and provide its 
recommended resolution for any conflicts not re-
solved during the planning process. The Commission 
shall make any recommendations to Congress on the 
appropriate Federal role or support required to ad-
dress the needs of the electric grid, including rec-
ommendations for addressing any needs that are be-
yond the reach of existing State, tribal, and Federal 
authority.’’. 
SEC. 152. NET METERING FOR FEDERAL AGENCIES. 
(a) STANDARD.—Subsection (b) of section 113 of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2623) is amended by adding the following new paragraph 
at the end thereof: 
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171 
‘‘(6) NET
METERING
FOR
FEDERAL
AGEN-
CIES.—Each electric utility shall offer to arrange 
(either directly or through a third party) to make 
interconnection and net metering available to Fed-
eral Government agencies, offices, or facilities in ac-
cordance with the requirements of section 115(j). 
The standard under this paragraph shall apply only 
to electric utilities that sold over 4,000,000 mega-
watt hours of electricity in the preceding year to the 
ultimate consumers thereof. In the case of a stand-
ard under this paragraph, a period of 1 year after 
the date of the enactment of this section shall be 
substituted for the 2-year period referred to in other 
provisions of this section.’’. 
(b) SPECIAL RULES.—Section 115 of the Public Util-
ity Regulatory Policies Act of 1978 (16 U.S.C. 2625) is 
amended by adding the following new subsection at the 
end thereof: 
‘‘(j) NET METERING FOR FEDERAL AGENCIES.—(1) 
The standard under paragraph (6) of section 113(b) shall 
require that rates and charges and contract terms and 
conditions for the sale of electric energy to the Federal 
Government or agency shall be the same as the rates and 
charges and contract terms and conditions that would be 
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172 
applicable if the agency did not own or operate a qualified 
generation unit and use a net metering system. 
‘‘(2)(A) The standard under paragraph (6) of section 
113(b) shall require that each electric utility shall arrange 
to provide to the Government office or agency that quali-
fies for net metering an electrical energy meter capable 
of net metering and measuring, to the maximum extent 
practicable, the flow of electricity to or from the customer, 
using a single meter and single register, the cost of which 
shall be recovered from the customer. 
‘‘(B) In a case in which it is not practicable to provide 
a meter under subparagraph (A), the utility (either di-
rectly or through a third party) shall, at the expense of 
the utility install 1 or more of those electric energy meters. 
‘‘(3)(A) The standard under paragraph (6) of section 
113(b) shall require that each electric utility shall cal-
culate the electric energy consumption for the Government 
office or agency using a net metering system that meets 
the requirements of this subsection and paragraph (6) of 
section 113(b) and shall measure the net electricity pro-
duced or consumed during the billing period using the me-
tering installed in accordance with this paragraph. 
‘‘(B) If the electricity supplied by the retail electric 
supplier exceeds the electricity generated by the Govern-
ment office or agency during the billing period, the Gov-
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173 
ernment office or agency shall be billed for the net electric 
energy supplied by the retail electric supplier in accord-
ance with normal billing practices. 
‘‘(C) If electric energy generated by the Government 
office or agency exceeds the electric energy supplied by 
the retail electric supplier during the billing period, the 
Government office or agency shall be billed for the appro-
priate customer charges for that billing period and cred-
ited for the excess electric energy generated during the 
billing period, with the credit appearing as a kilowatt-hour 
credit on the bill for the following billing period. 
‘‘(D) Any kilowatt-hour credits provided to the Gov-
ernment office or agency as provided in this subsection 
shall be applied to the Government office or agency elec-
tric energy consumption on the following billing period bill 
(except for a billing period that ends in the next calendar 
year). At the beginning of each calendar year, any unused 
kilowatt-hour credits remaining from the preceding year 
will carry over to the new year. 
‘‘(4) The standard under paragraph (6) of section 
113(b) shall require that each electric utility shall offer 
a meter and retail billing arrangement that has time-dif-
ferentiated rates. The kilowatt-hour credit shall be based 
on the ratio representing the difference in retail rates for 
each time-of-use rate, or the credits shall be reflected on 
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174 
the bill of the Government office or agency as a monetary 
credit reflecting retail rates at the time of generation of 
the electric energy by the customer-generator. 
‘‘(5) The standard under paragraph (6) of section 
113(b) shall require that the qualified generation unit, 
interconnection standards, and net metering system used 
by the Government office or agency shall meet all applica-
ble safety and performance and reliability standards estab-
lished by the National Electrical Code, the Institute of 
Electrical and Electronics Engineers, Underwriters Lab-
oratories, and the American National Standards Institute. 
‘‘(6) The standard under paragraph (6) of section 
113(b) shall require that electric utilities shall not make 
additional charges, including standby charges, for equip-
ment or services for safety or performance that are in ad-
dition to those necessary to meet the other standards and 
requirements of this subsection and paragraph (6) of sec-
tion 113(b). 
‘‘(7) For purposes of this subsection and paragraph 
(6) of section 113(b): 
‘‘(A) The term ‘Government’ means any office, 
facility, or agency of the Federal Government. 
‘‘(B) The term ‘customer-generator’ means the 
owner or operator of a electricity generation unit. 
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175 
‘‘(C) The term ‘electric generation unit’ means 
any renewable electric generation unit that is owned, 
operated, or sited on a Federal Government facility. 
‘‘(D) The term ‘net metering’ means the proc-
ess of— 
‘‘(i) measuring the difference between the 
electricity supplied to a customer-generator and 
the electricity generated by the customer-gener-
ator that is delivered to a utility at the same 
point of interconnection during an applicable 
billing period; and 
‘‘(ii) providing an energy credit to the cus-
tomer-generator in the form of a kilowatt-hour 
credit for each kilowatt-hour of electricity pro-
duced by the customer-generator from an elec-
tric generation unit.’’. 
(c) SAVINGS PROVISION.—If this section or a portion 
of this section is determined to be invalid or unenforceable, 
that shall not affect the validity or enforceability of any 
other provision of this Act. 
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176 
SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC 
TRANSMISSION 
MANUFACTURING 
PLANTS, 
QUALIFIED HIGH EFFICIENCY TRANSMISSION 
PROPERTY, 
AND 
QUALIFIED 
ADVANCED 
ELECTRIC TRANSMISSION PROPERTY. 
(a) LOAN GUARANTEES PRIOR TO SEPTEMBER 30, 
2011.—Section 1705(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16515(a)), as added by section 406 of the 
American Recovery and Reinvestment Act of 2009 (Public 
Law 109-58; 119 Stat. 594) is amended by adding the 
following new paragraph at the end thereof: 
‘‘(5) The development, construction, acquisition, 
retrofitting, or engineering integration of a qualified 
advanced electric transmission manufacturing plant 
or the construction of a qualified high efficiency 
transmission property or a qualified advanced elec-
tric transmission property (whether by construction 
of new facilities or the modification of existing facili-
ties). For purposes of this paragraph: 
‘‘(A) The term ‘qualified advanced electric 
transmission property’ means any high voltage 
electric transmission cable, related substation, 
converter station, or other integrated facility 
that— 
‘‘(i) utilizes advanced ultra low resist-
ance superconductive material or other ad-
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177 
vanced technology that has been deter-
mined by the Secretary of Energy as— 
‘‘(I) reasonably likely to become 
commercially viable within 10 years 
after the date of enactment of this 
paragraph; 
‘‘(II) capable of reliably transmit-
ting at least 5 gigawatts of high-volt-
age electric energy for distances 
greater than 300 miles with energy 
losses not exceeding 3 percent of the 
total power transported; and 
‘‘(III) not creating an electro-
magnetic field; 
‘‘(ii) has been determined by an ap-
propriate energy regulatory body, upon ap-
plication, to be in the public interest and 
thereby eligible for inclusion in regulated 
rates; and 
‘‘(iii) can be located safely and eco-
nomically in a permanent underground 
right of way not to exceed 25 feet in width. 
The term ‘qualified advanced electric trans-
mission property’ shall not include any property 
placed in service after December 31, 2016. 
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178 
‘‘(B)(i) The term ‘qualified high efficiency 
transmission property’ means any high voltage 
overhead electric transmission line, related sub-
station, or other integrated facility that— 
‘‘(I) utilizes advanced conductor core 
technology that— 
‘‘(aa) has been determined by the 
Secretary of Energy as reasonably 
likely to become commercially viable 
within 10 years after the date of en-
actment of this paragraph; 
‘‘(bb) is suitable for use on trans-
mission lines up to 765kV; and 
‘‘(cc) exhibits power losses at 
least 30 percent lower than that of 
transmission lines using conventional 
‘ACSR’ conductors; 
‘‘(II) has been determined by an ap-
propriate energy regulatory body, upon ap-
plication, to be in the public interest and 
thereby eligible for inclusion in regulated 
rates; and 
‘‘(III) can be located safely and eco-
nomically in a right of way not to exceed 
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179 
that used by conventional ‘ACSR’ conduc-
tors; and 
‘‘(ii) The term ‘qualified high efficiency 
transmission property’ shall not include any 
property placed in service after December 31, 
2016. 
‘‘(C) The term ‘qualified advanced electric 
transmission manufacturing plant’ means any 
industrial facility located in the United States 
which can be equipped, re-equipped, expanded, 
or established to produce in whole or in part 
qualified advanced electric transmission prop-
erty.’’. 
(b) ADDITIONAL LOAN GUARANTEE AUTHORITY.— 
Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 
16513) is amended by adding the following new paragraph 
at the end of subsection (b): 
‘‘(12) The development, construction, acquisi-
tion, retrofitting, or engineering integration of a 
qualified advanced electric transmission manufac-
turing plant or the construction of a qualified ad-
vanced electric transmission property (whether by 
construction of new facilities or the modification of 
existing facilities). For purposes of this paragraph, 
the terms ‘qualified advanced electric transmission 
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180 
property’ and ‘qualified advanced electric trans-
mission manufacturing plant’ have the meanings 
provided by section 1705(a)(5).’’. 
(c) GRANTS.—The Secretary of Energy is authorized 
to provide grants for up to 50 percent of costs incurred 
in connection with the development, construction, acquisi-
tion of components for, or engineering of a qualified ad-
vanced electric transmission property defined in paragraph 
(5) of section 1705(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16515(a)). Such grants may only be made to 
the first project which qualifies under that paragraph. 
There are authorized to be appropriated for purposes of 
this subsection not more than $100,000,000 for fiscal year 
2010. The United States shall take no equity or other 
ownership interest in the qualified advanced electric trans-
mission manufacturing plant or qualified advanced electric 
transmission property for which funding is provided under 
this subsection. 
Subtitle G—Technical Corrections 
to Energy Laws 
SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDE-
PENDENCE AND SECURITY ACT OF 2007. 
(a) TITLE III—ENERGY SAVINGS THROUGH IM-
PROVED STANDARDS FOR APPLIANCE AND LIGHTING.— 
(1) Section 325(u) of the Energy Policy and Conservation 
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181 
Act (42 U.S.C. 6295(u)) (as amended by section 301(c) 
of the Energy Independence and Security Act of 2007 
(121 Stat. 1550)) is amended— 
(A) by redesignating paragraph (7) as 
paragraph (4); and 
(B) in paragraph (4) (as so redesignated), 
by striking ‘‘supplies is’’ and inserting ‘‘supply 
is’’. 
(2) Section 302 of the Energy Independence and Se-
curity Act of 2007 (121 Stat. 1551)) is amended— 
(A) in subsection (a), by striking ‘‘end of the 
paragraph’’ and inserting ‘‘end of subparagraph 
(A)’’; and 
(B) in subsection (b), by striking ‘‘6313(a)’’ 
and inserting ‘‘6314(a)’’. 
(3) Section 343(a)(1) of the Energy Policy and Con-
servation Act (42 U.S.C. 6313(a)(1)) (as amended by sec-
tion 302(b) of the Energy Independence and Security Act 
of 2007 (121 Stat. 1551)) is amended— 
(A) by striking ‘‘TEST PROCEDURES’’ and all 
that follows through ‘‘At least once’’ and inserting 
‘‘TEST PROCEDURES.—At least once’’; and 
(B) by redesignating clauses (i) and (ii) as sub-
paragraphs (A) and (B), respectively (and by moving 
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182 
the margins of such subparagraphs 2 ems to the 
left). 
(4) Section 342(a)(6) of the Energy Policy and Con-
servation Act (42 U.S.C. 6313(a)(6)) (as amended by sec-
tion 305(b)(2) of the Energy Independence and Security 
Act of 2007 (121 Stat. 1554)) is amended— 
(A) in subparagraph (B)— 
(i) by striking ‘‘If the Secretary’’ and in-
serting the following: 
‘‘(i) IN GENERAL.—If the Secretary’’; 
(ii) by striking ‘‘clause (ii)(II)’’ and insert-
ing ‘‘subparagraph (A)(ii)(II)’’; 
(iii) by striking ‘‘clause (i)’’ and inserting 
‘‘subparagraph (A)(i)’’; and 
(iv) by adding at the end the following: 
‘‘(ii) 
FACTORS.—In 
determining 
whether a standard is economically justi-
fied for the purposes of subparagraph 
(A)(ii)(II), the Secretary shall, after receiv-
ing views and comments furnished with re-
spect to the proposed standard, determine 
whether the benefits of the standard ex-
ceed the burden of the proposed standard 
by, to the maximum extent practicable, 
considering— 
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183 
‘‘(I) the economic impact of the 
standard on the manufacturers and 
on the consumers of the products sub-
ject to the standard; 
‘‘(II) the savings in operating 
costs throughout the estimated aver-
age life of the product in the type (or 
class) compared to any increase in the 
price of, or in the initial charges for, 
or maintenance expenses of, the prod-
ucts that are likely to result from the 
imposition of the standard; 
‘‘(III) the total projected quan-
tity of energy savings likely to result 
directly from the imposition of the 
standard; 
‘‘(IV) any lessening of the utility 
or the performance of the products 
likely to result from the imposition of 
the standard; 
‘‘(V) the impact of any lessening 
of competition, as determined in writ-
ing by the Attorney General, that is 
likely to result from the imposition of 
the standard; 
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184 
‘‘(VI) the need for national en-
ergy conservation; and 
‘‘(VII) other factors the Sec-
retary considers relevant. 
‘‘(iii) ADMINISTRATION.— 
‘‘(I) ENERGY
USE
AND
EFFI-
CIENCY.—The Secretary may not pre-
scribe any amended standard under 
this paragraph that increases the 
maximum allowable energy use, or de-
creases the minimum required energy 
efficiency, of a covered product. 
‘‘(II) UNAVAILABILITY.— 
‘‘(aa) IN
GENERAL.—The 
Secretary may not prescribe an 
amended standard under this 
subparagraph if the Secretary 
finds (and publishes the finding) 
that interested persons have es-
tablished by a preponderance of 
the evidence that a standard is 
likely to result in the unavail-
ability in the United States in 
any product type (or class) of 
performance characteristics (in-
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185 
cluding reliability, features, sizes, 
capacities, and volumes) that are 
substantially the same as those 
generally available in the United 
States at the time of the finding 
of the Secretary. 
‘‘(bb) OTHER
TYPES
OR 
CLASSES.—The failure of some 
types (or classes) to meet the cri-
terion established under this sub-
clause shall not affect the deter-
mination of the Secretary on 
whether to prescribe a standard 
for the other types or classes.’’; 
and 
(B) in subparagraph (C)(iv), by striking ‘‘An 
amendment prescribed under this subsection’’ and 
inserting ‘‘Notwithstanding subparagraph (D), an 
amendment prescribed under this subparagraph’’. 
(5) Section 342(a)(6)(B)(iii) of the Energy Policy 
and Conservation Act (as added by section 306(c) of the 
Energy Independence and Security Act of 2007) is trans-
ferred and redesignated as clause (vi) of section 
342(a)(6)(C) of the Energy Policy and Conservation Act 
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186 
(as amended by section 305(b)(2) of the Energy Independ-
ence and Security Act of 2007). 
(6) Section 340 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6311) (as amended by sections 
312(a)(2) and 314(a) of the Energy Independence and Se-
curity Act of 2007 (121 Stat. 1564, 1569)) is amended 
by redesignating paragraphs (22) and (23) (as added by 
section 314(a) of that Act) as paragraphs (23) and (24), 
respectively. 
(7) Section 345 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6316) (as amended by section 312(e) 
of the Energy Independence and Security Act of 2007 
(121 Stat. 1567)) is amended— 
(A) by striking ‘‘subparagraphs (B) through 
(G)’’ each place it appears and inserting ‘‘subpara-
graphs (B), (C), (D), (I), (J), and (K)’’; 
(B) by striking ‘‘part A’’ each place it appears 
and inserting ‘‘part B’’; and 
(C) in subsection (h)(3), by striking ‘‘section 
342(f)(3)’’ and inserting ‘‘section 342(f)(4)’’. 
(8) Section 340(13) of the Energy Policy and Con-
servation Act (42 U.S.C. 6311(13)) (as amended by sec-
tion 313(a) of the Energy Independence and Security Act 
of 2007 (121 Stat. 1568)) is amended— 
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187 
(A) by striking subparagraphs (A) and (B) and 
inserting the following: 
‘‘(A) IN
GENERAL.—The term ‘electric 
motor’ means any motor that is— 
‘‘(i) a general purpose T-frame, sin-
gle-speed, foot-mounting, polyphase squir-
rel-cage induction motor of the National 
Electrical Manufacturers Association, De-
sign A and B, continuous rated, operating 
on 230/460 volts and constant 60 Hertz 
line power as defined in NEMA Standards 
Publication MG1-1987; or 
‘‘(ii) a motor incorporating the design 
elements described in clause (i), but is con-
figured to incorporate one or more of the 
following variations— 
‘‘(I) U-frame motor; 
‘‘(II) NEMA Design C motor; 
‘‘(III) close-coupled pump motor; 
‘‘(IV) footless motor; 
‘‘(V) vertical solid shaft normal 
thrust motor (as tested in a horizontal 
configuration); 
‘‘(VI) 8-pole motor; or 
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188 
‘‘(VII) poly-phase motor with a 
voltage rating of not more than 600 
volts (other than 230 volts or 460 
volts, or both, or can be operated on 
230 volts or 460 volts, or both).’’; and 
(B) 
by 
redesignating 
subparagraphs 
(C) 
through (I) as subparagraphs (B) through (H), re-
spectively. 
(9)(A) Section 342(b) of the Energy Policy and Con-
servation Act (42 U.S.C. 6313(b)) is amended— 
(i) in paragraph (1), by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraph (3)’’; 
(ii) by redesignating paragraphs (2) and (3) as para-
graphs (3) and (4); 
(iii) by inserting after paragraph (1) the following: 
‘‘(2) STANDARDS
EFFECTIVE
BEGINNING
DE-
CEMBER 19, 2010.— 
‘‘(A) IN
GENERAL.—Except for definite 
purpose motors, special purpose motors, and 
those motors exempted by the Secretary under 
paragraph (3) and except as provided for in 
subparagraphs (B), (C), and (D), each electric 
motor manufactured with power ratings from 1 
to 200 horsepower (alone or as a component of 
another piece of equipment) on or after Decem-
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189 
ber 19, 2010, shall have a nominal full load ef-
ficiency of not less than the nominal full load 
efficiency described in NEMA MG-1 (2006) 
Table 12-12. 
‘‘(B) FIRE PUMP ELECTRIC MOTORS.—Ex-
cept for those motors exempted by the Sec-
retary under paragraph (3), each fire pump 
electric motor manufactured with power ratings 
from 1 to 200 horsepower (alone or as a compo-
nent of another piece of equipment) on or after 
December 19, 2010, shall have a nominal full 
load efficiency that is not less than the nominal 
full load efficiency described in NEMA MG-1 
(2006) Table 12-11. 
‘‘(C) NEMA DESIGN
B
ELECTRIC
MO-
TORS.—Except for those motors exempted by 
the Secretary under paragraph (3), each 
NEMA Design B electric motor with power rat-
ings of more than 200 horsepower, but not 
greater than 500 horsepower, manufactured 
(alone or as a component of another piece of 
equipment) on or after December 19, 2010, 
shall have a nominal full load efficiency of not 
less than the nominal full load efficiency de-
scribed in NEMA MG-1 (2006) Table 12-11. 
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190 
‘‘(D) MOTORS
INCORPORATING
CERTAIN 
DESIGN ELEMENTS.—Except for those motors 
exempted by the Secretary under paragraph 
(3), each electric motor described in section 
340(13)(A)(ii) manufactured with power rat-
ings from 1 to 200 horsepower (alone or as a 
component of another piece of equipment) on or 
after December 19, 2010, shall have a nominal 
full load efficiency of not less than the nominal 
full load efficiency described in NEMA MG-1 
(2006) Table 12-11.’’; and 
(iv) in paragraph (3) (as redesignated by clause (ii)), 
by striking ‘‘paragraph (1)’’ each place it appears in sub-
paragraphs (A) and (D) and inserting ‘‘paragraphs (1) 
and (2)’’. 
(B) Section 313 of the Energy Independence and Se-
curity Act of 2007 (121 Stat. 1568) is repealed. 
(C) The amendments made by— 
(i) subparagraph (A) shall take effect on De-
cember 19, 2010; and 
(ii) subparagraph (B) shall take effect on De-
cember 19, 2007. 
(10) Section 321(30)(D)(i)(III) of the Energy Policy 
and Conservation Act (42 U.S.C. 6291(30)(D)(i)(III)) (as 
amended by section 321(a)(1)(A) of the Energy Independ-
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191 
ence and Security Act of 2007 (121 Stat. 1574)) is 
amended by inserting before the semicolon the following: 
‘‘or, in the case of a modified spectrum lamp, not less than 
232 lumens and not more than 1,950 lumens’’. 
(11) Section 321(30)(T) of the Energy Policy and 
Conservation Act (42 U.S.C. 6291(30)(T) (as amended by 
section 321(a)(1)(B) of the Energy Independence and Se-
curity Act of 2007 (121 Stat. 1574)) is amended— 
(A) in clause (i)— 
(i) by striking the comma after ‘‘household 
appliance’’ and inserting ‘‘and’’; and 
(ii) by striking ‘‘and is sold at retail,’’; and 
(B) in clause (ii), by inserting ‘‘when sold at re-
tail,’’ before ‘‘is designated’’. 
(12) Section 325 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6295) (as amended by sections 
321(a)(3)(A) and 322(b) of the Energy Independence and 
Security Act of 2007 (121 Stat. 1577, 1588)) is amended 
by striking subsection (i) and inserting the following: 
‘‘(i) GENERAL SERVICE FLUORESCENT LAMPS, GEN-
ERAL SERVICE INCANDESCENT LAMPS, INTERMEDIATE 
BASE INCANDESCENT LAMPS, CANDELABRA BASE INCAN-
DESCENT
LAMPS, 
AND
INCANDESCENT
REFLECTOR 
LAMPS.— 
‘‘(1) ENERGY EFFICIENCY STANDARDS.— 
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192 
‘‘(A) IN GENERAL.—Each of the following 
general service fluorescent lamps, general serv-
ice incandescent lamps, intermediate base in-
candescent lamps, candelabra base incandescent 
lamps, and incandescent reflector lamps manu-
factured after the effective date specified in the 
tables listed in this subparagraph shall meet or 
exceed the following lamp efficacy, new max-
imum wattage, and CRI standards: 
‘‘FLUORESCENT LAMPS 
Lamp Type 
Nominal 
Lamp 
Wattage 
Minimum 
CRI 
Minimum Average 
Lamp Efficacy 
(LPW) 
Effective 
Date (Pe-
riod of 
Months) 
4-foot medium bi-pin .................
>35 W 
75.0 
....................................................
≤35 W 
75.0 
2-foot U-shaped .........................
>35 W 
68.0 
....................................................
≤35 W 
64.0 
8-foot slimline ............................
65 W 
80.0 
....................................................
≤65 W 
80.0 
8-foot high output ......................
>100 W 
80.0 
....................................................
≤100 W 
80.0 
‘‘INCANDESCENT REFLECTOR LAMPS 
Nominal Lamp Wattage 
Minimum Average 
Lamp Efficacy 
(LPW) 
Effective 
Date (Pe-
riod of 
Months) 
40–50 ......................................................................................
10.5 
51–66 ......................................................................................
11.0 
67–85 ......................................................................................
12.5 
86–115 ....................................................................................
14.0 
116–155 ....................................................................................
14.5 
156–205 ....................................................................................
15.0 
‘‘GENERAL SERVICE INCANDESCENT LAMPS 
Rated Lumen Ranges 
Maximum Rated 
Wattage 
Minimum 
Rated Life-
time 
Effective 
Date 
1490–2600 
1,000 hrs 
1/1/2012 
1050–1489 
1,000 hrs 
1/1/2013 
750–1049 
1,000 hrs 
1/1/2014 
310–749 
1,000 hrs 
1/1/2014 
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212 
(3) Section 305(a)(3)(D)(i) of the Energy Conserva-
tion and Production Act (42 U.S.C. 6834(a)(3)(D)(i)) (as 
amended by section 433(a) of the Energy Independence 
and Security Act of 2007 (121 Stat. 1612)) is amended— 
(A) in subclause (I)— 
(i) by striking ‘‘in fiscal year 2003 (as 
measured by Commercial Buildings Energy 
Consumption Survey or Residential Energy 
Consumption Survey data from the Energy In-
formation Agency’’ and inserting ‘‘as measured 
by the calendar year 2003 Commercial Build-
ings Energy Consumption Survey or the cal-
endar year 2005 Residential Energy Consump-
tion Survey data from the Energy Information 
Administration’’; and 
(ii) in the table at the end, by striking 
‘‘Fiscal Year’’ and inserting ‘‘Calendar 
Year’’; and 
(B) in subclause (II)— 
(i) by striking ‘‘(II) Upon petition’’ and in-
serting the following: 
‘‘(II) DOWNWARD
ADJUSTMENT 
OF NUMERIC REQUIREMENT.— 
‘‘(aa) IN GENERAL.—On pe-
tition’’; and 
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