152 
‘‘(d) FAILURE TO AMEND THE STANDARDS.—If the 
Secretaries have not, within 1 year after the requirements 
of the 2006 IECC or the ASHRAE Standard 90.1–2004 
are revised, amended the standards or made a determina-
tion under subsection (c) of this section, and if the Sec-
retary of Energy has made a determination under section 
304 of the Energy Conservation and Production Act (42 
U.S.C. 6833) that the revised code or standard would im-
prove energy efficiency, all new construction and rehabili-
tation of housing specified in subsection (a) shall meet the 
requirements of the revised code or standard.’’; 
(6) by striking ‘‘CABO Model Energy Code, 
1992’’ each place it appears and inserting ‘‘the 2006 
IECC’’; and 
(7) by striking ‘‘1989’’ each place it appears 
and inserting ‘‘2004’’. 
SEC. 268. ENERGY EFFICIENT COMMERCIAL BUILDINGS 
INITIATIVE. 
(a) DEFINITIONS.—In this section: 
(1) CONSORTIUM.—The term ‘‘consortium’’ 
means a working group that is comprised of— 
(A) individuals representing— 
(i) 1 or more businesses engaged in— 
(I) commercial building develop-
ment; 
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(II) construction; or 
(III) real estate; 
(ii) financial institutions; 
(iii) academic or research institutions; 
(iv) State or utility energy efficiency 
programs; 
(v) nongovernmental energy efficiency 
organizations; and 
(vi) the Federal Government; 
(B) 1 or more building designers; and 
(C) 1 or more individuals who own or oper-
ate 1 or more buildings. 
(2) ENERGY
EFFICIENT
COMMERCIAL
BUILD-
ING.—The term ‘‘energy efficient commercial build-
ing’’ means a commercial building that is designed, 
constructed, and operated— 
(A) to require a greatly reduced quantity 
of energy; 
(B) to meet, on an annual basis, the bal-
ance of energy needs of the commercial building 
from renewable sources of energy; and 
(C) to be economically viable. 
(3) INITIATIVE.—The term ‘‘initiative’’ means 
the Energy Efficient Commercial Buildings Initia-
tive. 
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(b) INITIATIVE.— 
(1) IN
GENERAL.—The Secretary shall enter 
into an agreement with the consortium to develop 
and carry out the initiative— 
(A) to reduce the quantity of energy con-
sumed by commercial buildings located in the 
United States; and 
(B) to achieve the development of energy 
efficient commercial buildings in the United 
States. 
(2) GOAL OF INITIATIVE.—The goal of the ini-
tiative shall be to develop technologies and practices 
and implement policies that lead to energy efficient 
commercial buildings for— 
(A) any commercial building newly con-
structed in the United States by 2030; 
(B) 50 percent of the commercial building 
stock of the United States by 2040; and 
(C) all commercial buildings in the United 
States by 2050. 
(3) COMPONENTS.—In carrying out the initia-
tive, the Secretary, in collaboration with the consor-
tium, may— 
(A) conduct research and development on 
building design, materials, equipment and con-
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trols, operation and other practices, integration, 
energy use measurement and benchmarking, 
and policies; 
(B) conduct demonstration projects to 
evaluate replicable approaches to achieving en-
ergy efficient commercial buildings for a variety 
of building types in a variety of climate zones; 
(C) conduct deployment activities to dis-
seminate information on, and encourage wide-
spread adoption of, technologies, practices, and 
policies to achieve energy efficient commercial 
buildings; and 
(D) conduct any other activity necessary to 
achieve any goal of the initiative, as determined 
by the Secretary, in collaboration with the con-
sortium. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated such sums as are necessary to carry 
out this section. 
(2) ADDITIONAL
FUNDING.—In addition to 
amounts authorized to be appropriated under para-
graph (1), the Secretary may allocate funds from 
other appropriations to the initiative without chang-
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156 
ing the purpose for which the funds are appro-
priated. 
Subtitle 
F—Assisting 
State 
and 
Local Governments in Energy 
Efficiency 
SEC. 271. WEATHERIZATION ASSISTANCE FOR LOW-INCOME 
PERSONS. 
Section 422 of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6872) is amended by striking 
‘‘$700,000,000 for fiscal year 2008’’ and inserting 
‘‘$750,000,000 for each of fiscal years 2008 through 
2012’’. 
SEC. 272. STATE ENERGY CONSERVATION PLANS. 
Section 365(f) of the Energy Policy and Conservation 
Act (42 U.S.C. 6325(f)) is amended by striking ‘‘fiscal 
year 2008’’ and inserting ‘‘each of fiscal years 2008 
through 2012’’. 
SEC. 273. UTILITY ENERGY EFFICIENCY PROGRAMS. 
(a) ELECTRIC UTILITIES.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621(d)) is amended by adding at the end the following: 
‘‘(16) INTEGRATED
RESOURCE
PLANNING.— 
Each electric utility shall— 
‘‘(A) integrate energy efficiency resources 
into utility, State, and regional plans; and 
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157 
‘‘(B) adopt policies establishing cost-effec-
tive energy efficiency as a priority resource. 
‘‘(17) RATE DESIGN MODIFICATIONS TO PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The rates allowed to 
be charged by any electric utility shall— 
‘‘(i) align utility incentives with the 
delivery of cost-effective energy efficiency; 
and 
‘‘(ii) promote energy efficiency invest-
ments. 
‘‘(B) POLICY OPTIONS.—In complying with 
subparagraph (A), each State regulatory au-
thority and each nonregulated utility shall con-
sider— 
‘‘(i) removing the throughput incen-
tive and other regulatory and management 
disincentives to energy efficiency; 
‘‘(ii) providing utility incentives for 
the successful management of energy effi-
ciency programs; 
‘‘(iii) including the impact on adoption 
of energy efficiency as 1 of the goals of re-
tail rate design, recognizing that energy ef-
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158 
ficiency must be balanced with other objec-
tives; 
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each cus-
tomer class; and 
‘‘(v) allowing timely recovery of en-
ergy efficiency-related costs.’’. 
(b) NATURAL GAS UTILITIES.—Section 303(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
3203(b)) is amended by adding at the end the following: 
‘‘(5) ENERGY EFFICIENCY.—Each natural gas 
utility shall— 
‘‘(A) integrate energy efficiency resources 
into the plans and planning processes of the 
natural gas utility; and 
‘‘(B) adopt policies that establish energy 
efficiency as a priority resource in the plans 
and planning processes of the natural gas util-
ity. 
‘‘(6) RATE
DESIGN
MODIFICATIONS
TO
PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The rates allowed to 
be charged by a natural gas utility shall align 
utility incentives with the deployment of cost-ef-
fective energy efficiency. 
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159 
‘‘(B) POLICY OPTIONS.—In complying with 
subparagraph (A), each State regulatory au-
thority and each nonregulated utility shall con-
sider— 
‘‘(i) separating fixed-cost revenue re-
covery from the volume of transportation 
or sales service provided to the customer; 
‘‘(ii) providing to utilities incentives 
for the successful management of energy 
efficiency programs, such as allowing utili-
ties to retain a portion of the cost-reducing 
benefits accruing from the programs; 
‘‘(iii) promoting the impact on adop-
tion of energy efficiency as 1 of the goals 
of retail rate design, recognizing that en-
ergy efficiency must be balanced with other 
objectives; and 
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each cus-
tomer class.’’. 
SEC. 274. ENERGY EFFICIENCY AND DEMAND RESPONSE 
PROGRAM ASSISTANCE. 
The Secretary shall provide technical assistance re-
garding the design and implementation of the energy effi-
ciency and demand response programs established under 
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160 
this title, and the amendments made by this title, to State 
energy offices, public utility regulatory commissions, and 
nonregulated utilities through the appropriate national 
laboratories of the Department of Energy. 
SEC. 275. ENERGY AND ENVIRONMENTAL BLOCK GRANT. 
Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 123. ENERGY AND ENVIRONMENTAL BLOCK GRANT. 
‘‘(a) DEFINITIONS.—In this section 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a State; 
‘‘(B) an eligible unit of local government 
within a State; and 
‘‘(C) an Indian tribe. 
‘‘(2) ELIGIBLE
UNIT
OF
LOCAL
GOVERN-
MENT.—The term ‘eligible unit of local government’ 
means— 
‘‘(A) a city with a population— 
‘‘(i) of at least 35,000; or 
‘‘(ii) that causes the city to be 1 of 
the top 10 most populous cities of the 
State in which the city is located; and 
‘‘(B) a county with a population— 
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161 
‘‘(i) of at least 200,000; or 
‘‘(ii) that causes the county to be 1 of 
the top 10 most populous counties of the 
State in which the county is located. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Energy. 
‘‘(4) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; 
‘‘(C) the Commonwealth of Puerto Rico; 
and 
‘‘(D) any other territory or possession of 
the United States. 
‘‘(b) PURPOSE.—The purpose of this section is to as-
sist State and local governments in implementing strate-
gies— 
‘‘(1) to reduce fossil fuel emissions created as 
a result of activities within the boundaries of the 
States or units of local government; 
‘‘(2) to reduce the total energy use of the 
States and units of local government; and 
‘‘(3) to improve energy efficiency in the trans-
portation sector, building sector, and any other ap-
propriate sectors. 
‘‘(c) PROGRAM.— 
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162 
‘‘(1) IN GENERAL.—The Secretary shall provide 
to eligible entities block grants to carry out eligible 
activities (as specified under paragraph (2)) relating 
to the implementation of environmentally beneficial 
energy strategies. 
‘‘(2) ELIGIBLE ACTIVITIES.—The Secretary, in 
consultation with the Administrator of the Environ-
mental Protection Agency, the Secretary of Trans-
portation, and the Secretary of Housing and Urban 
Development, shall establish a list of activities that 
are eligible for assistance under the grant program. 
‘‘(3) ALLOCATION
TO
STATES
AND
ELIGIBLE 
UNITS OF LOCAL GOVERNMENT.— 
‘‘(A) IN GENERAL.—Of the amounts made 
available to provide grants under this sub-
section, the Secretary shall allocate— 
‘‘(i) 70 percent to eligible units of 
local government; and 
‘‘(ii) 30 percent to States. 
‘‘(B) DISTRIBUTION
TO
ELIGIBLE
UNITS 
OF LOCAL GOVERNMENT.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall establish a formula for the distribu-
tion of amounts under subparagraph (A)(i) 
to eligible units of local government, taking 
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163 
into account any factors that the Secretary 
determines to be appropriate, including the 
residential and daytime population of the 
eligible units of local government. 
‘‘(ii) CRITERIA.—Amounts shall be 
distributed to eligible units of local govern-
ment under clause (i) only if the eligible 
units of local government meet the criteria 
for distribution established by the Sec-
retary for units of local government. 
‘‘(C) DISTRIBUTION TO STATES.— 
‘‘(i) IN
GENERAL.—Of the amounts 
provided to States under subparagraph 
(A)(ii), the Secretary shall distribute— 
‘‘(I) at least 1.25 percent to each 
State; and 
‘‘(II) the remainder among the 
States, based on a formula, to be de-
termined by the Secretary, that takes 
into account the population of the 
States and any other criteria that the 
Secretary determines to be appro-
priate. 
‘‘(ii) CRITERIA.—Amounts shall be 
distributed to States under clause (i) only 
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164 
if the States meet the criteria for distribu-
tion established by the Secretary for 
States. 
‘‘(iii) LIMITATION ON USE OF STATE 
FUNDS.—At least 40 percent of the 
amounts distributed to States under this 
subparagraph shall be used by the States 
for the conduct of eligible activities in non-
entitlement areas in the States, in accord-
ance with any criteria established by the 
Secretary. 
‘‘(4) REPORT.—Not later than 2 years after the 
date on which an eligible entity first receives a grant 
under this section, and every 2 years thereafter, the 
eligible entity shall submit to the Secretary a report 
that describes any eligible activities carried out using 
assistance provided under this subsection. 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection for 
each of fiscal years 2008 through 2012. 
‘‘(d) 
ENVIRONMENTALLY
BENEFICIAL
ENERGY 
STRATEGIES SUPPLEMENTAL GRANT PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
to each eligible entity that meets the applicable cri-
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teria under subparagraph (B)(ii) or (C)(ii) of sub-
section (c)(3) a supplemental grant to pay the Fed-
eral share of the total costs of carrying out an activ-
ity relating to the implementation of an environ-
mentally beneficial energy strategy. 
‘‘(2) REQUIREMENTS.—To be eligible for a 
grant under paragraph (1), an eligible entity shall— 
‘‘(A) demonstrate to the satisfaction of the 
Secretary that the eligible entity meets the ap-
plicable criteria under subparagraph (B)(ii) or 
(C)(ii) of subsection (c)(3); and 
‘‘(B) submit to the Secretary for approval 
a plan that describes the activities to be funded 
by the grant. 
‘‘(3) COST-SHARING REQUIREMENT.— 
‘‘(A) 
FEDERAL
SHARE.—The 
Federal 
share of the cost of carrying out any activities 
under this subsection shall be 75 percent. 
‘‘(B) NON-FEDERAL SHARE.— 
‘‘(i) FORM.—Not more than 50 per-
cent of the non-Federal share may be in 
the form of in-kind contributions. 
‘‘(ii) LIMITATION.—Amounts provided 
to an eligible entity under subsection (c) 
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166 
shall not be used toward the non-Federal 
share. 
‘‘(4) MAINTENANCE OF EFFORT.—An eligible 
entity shall provide assurances to the Secretary that 
funds provided to the eligible entity under this sub-
section will be used only to supplement, not to sup-
plant, the amount of Federal, State, and local funds 
otherwise expended by the eligible entity for eligible 
activities under this subsection. 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection for 
each of fiscal years 2008 through 2012. 
‘‘(e) GRANTS
TO OTHER STATES
AND COMMU-
NITIES.— 
‘‘(1) IN
GENERAL.—Of the total amount of 
funds that are made available each fiscal year to 
carry out this section, the Secretary shall use 2 per-
cent of the amount to make competitive grants 
under this section to States and units of local gov-
ernment that are not eligible entities or to consortia 
of such units of local government. 
‘‘(2) APPLICATIONS.—To be eligible for a grant 
under this subsection, a State, unit of local govern-
ment, or consortia described in paragraph (1) shall 
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167 
apply to the Secretary for a grant to carry out an 
activity that would otherwise be eligible for a grant 
under subsection (c) or (d). 
‘‘(3) PRIORITY.—In awarding grants under this 
subsection, the Secretary shall give priority to— 
‘‘(A) States with populations of less than 
2,000,000; and 
‘‘(B) projects that would result in signifi-
cant energy efficiency improvements, reductions 
in fossil fuel use, or capital improvements.’’. 
SEC. 
276. 
ENERGY 
SUSTAINABILITY 
AND 
EFFICIENCY 
GRANTS FOR INSTITUTIONS OF HIGHER EDU-
CATION. 
Part G of title III of the Energy Policy and Conserva-
tion Act is amended by inserting after section 399 (42 
U.S.C. 371h) the following: 
‘‘SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY 
GRANTS FOR INSTITUTIONS OF HIGHER EDU-
CATION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ENERGY SUSTAINABILITY.—The term ‘en-
ergy sustainability’ includes using a renewable en-
ergy resource and a highly efficient technology for 
electricity generation, transportation, heating, or 
cooling. 
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168 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 2 of the Energy 
Policy Act of 2005 (42 U.S.C. 15801). 
‘‘(b) GRANTS FOR ENERGY EFFICIENCY IMPROVE-
MENT.— 
‘‘(1) IN GENERAL.—The Secretary shall award 
not more than 100 grants to institutions of higher 
education to carry out projects to improve energy ef-
ficiency on the grounds and facilities of the institu-
tion of higher education, including not less than 1 
grant to an institution of higher education in each 
State. 
‘‘(2) CONDITION.—As a condition of receiving a 
grant under this subsection, an institution of higher 
education shall agree to— 
‘‘(A) implement a public awareness cam-
paign concerning the project in the community 
in which the institution of higher education is 
located; and 
‘‘(B) submit to the Secretary, and make 
available to the public, reports on any efficiency 
improvements, energy cost savings, and environ-
mental benefits achieved as part of a project 
carried out under paragraph (1). 
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169 
‘‘(c) GRANTS FOR INNOVATION IN ENERGY SUSTAIN-
ABILITY.— 
‘‘(1) IN GENERAL.—The Secretary shall award 
not more than 250 grants to institutions of higher 
education to engage in innovative energy sustain-
ability projects, including not less than 2 grants to 
institutions of higher education in each State. 
‘‘(2) INNOVATION
PROJECTS.—An innovation 
project carried out with a grant under this sub-
section shall— 
‘‘(A) involve— 
‘‘(i) an innovative technology that is 
not yet commercially available; or 
‘‘(ii) available technology in an inno-
vative application that maximizes energy 
efficiency and sustainability; 
‘‘(B) have the greatest potential for testing 
or demonstrating new technologies or processes; 
and 
‘‘(C) ensure active student participation in 
the project, including the planning, implementa-
tion, evaluation, and other phases of the 
project. 
‘‘(3) CONDITION.—As a condition of receiving a 
grant under this subsection, an institution of higher 
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170 
education shall agree to submit to the Secretary, 
and make available to the public, reports that de-
scribe the results of the projects carried out under 
paragraph (1). 
‘‘(d) AWARDING OF GRANTS.— 
‘‘(1) APPLICATION.—An institution of higher 
education that seeks to receive a grant under this 
section may submit to the Secretary an application 
for the grant at such time, in such form, and con-
taining such information as the Secretary may pre-
scribe. 
‘‘(2) SELECTION.—The Secretary shall estab-
lish a committee to assist in the selection of grant 
recipients under this section. 
‘‘(e) ALLOCATION
TO INSTITUTIONS
OF HIGHER 
EDUCATION
WITH
SMALL
ENDOWMENTS.—Of 
the 
amount of grants provided for a fiscal year under this sec-
tion, the Secretary shall provide not less 50 percent of the 
amount to institutions of higher education that have an 
endowment of not more than $100,000,000, with 50 per-
cent of the allocation set aside for institutions of higher 
education that have an endowment of not more than 
$50,000,000. 
‘‘(f) GRANT AMOUNTS.—The maximum amount of 
grants for a project under this section shall not exceed— 
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‘‘(1) in the case of grants for energy efficiency 
improvement under subsection (b), $1,000,000; or 
‘‘(2) in the case of grants for innovation in en-
ergy sustainability under subsection (c), $500,000. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 
2008 through 2012.’’. 
SEC. 277. WORKFORCE TRAINING. 
Section 1101 of the Energy Policy Act of 2005 (42 
U.S.C. 16411) is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) WORKFORCE TRAINING.— 
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with the Secretary of Labor, shall promulgate 
regulations to implement a program to provide work-
force training to meet the high demand for workers 
skilled in the energy efficiency and renewable energy 
industries. 
‘‘(2) CONSULTATION.—In carrying out this sub-
section, the Secretary shall consult with representa-
tives of the energy efficiency and renewable energy 
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172 
industries concerning skills that are needed in those 
industries.’’. 
SEC. 278. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS 
IDLING. 
(a) STATEMENT OF POLICY.—Congress encourages 
each local educational agency (as defined in section 
9101(26) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7801(26))) that receives Federal funds 
under the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) to develop a policy to re-
duce the incidence of school bus idling at schools while 
picking up and unloading students. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary, work-
ing in coordination with the Secretary of Education, 
$5,000,000 for each of fiscal years 2007 through 2012 
for use in educating States and local education agencies 
about— 
(1) benefits of reducing school bus idling; and 
(2) ways in which school bus idling may be re-
duced. 
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173 
TITLE 
III—CARBON 
CAPTURE 
AND 
STORAGE 
RESEARCH, 
DEVELOPMENT, 
AND 
DEM-
ONSTRATION 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Carbon Capture and 
Sequestration Act of 2007’’. 
SEC. 302. CARBON CAPTURE AND STORAGE RESEARCH, DE-
VELOPMENT, 
AND 
DEMONSTRATION 
PRO-
GRAM. 
Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended— 
(1) in the section heading, by striking ‘‘RE-
SEARCH
AND
DEVELOPMENT’’ and inserting 
‘‘AND
STORAGE
RESEARCH, 
DEVELOPMENT, 
AND DEMONSTRATION’’; 
(2) in subsection (a)— 
(A) by striking ‘‘research and develop-
ment’’ and inserting ‘‘and storage research, de-
velopment, and demonstration’’; and 
(B) by striking ‘‘capture technologies on 
combustion-based systems’’ and inserting ‘‘cap-
ture and storage technologies related to energy 
systems’’; 
(3) in subsection (b)— 
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174 
(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) to expedite and carry out large-scale test-
ing of carbon sequestration systems in a range of ge-
ological formations that will provide information on 
the cost and feasibility of deployment of sequestra-
tion technologies.’’; and 
(4) by striking subsection (c) and inserting the 
following: 
‘‘(c) PROGRAMMATIC ACTIVITIES.— 
‘‘(1) ENERGY
RESEARCH
AND
DEVELOPMENT 
UNDERLYING
CARBON
CAPTURE
AND
STORAGE 
TECHNOLOGIES AND CARBON USE ACTIVITIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out fundamental science and engineering 
research 
(including 
laboratory-scale 
experi-
ments, numeric modeling, and simulations) to 
develop and document the performance of new 
approaches to capture and store, recycle, or 
reuse carbon dioxide. 
‘‘(B) PROGRAM INTEGRATION.—The Sec-
retary shall ensure that fundamental research 
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175 
carried out under this paragraph is appro-
priately applied to energy technology develop-
ment activities, the field testing of carbon se-
questration, and carbon use activities, includ-
ing— 
‘‘(i) development of new or improved 
technologies for the capture of carbon diox-
ide; 
‘‘(ii) development of new or improved 
technologies that reduce the cost and in-
crease the efficacy of the compression of 
carbon dioxide required for the storage of 
carbon dioxide; 
‘‘(iii) modeling and simulation of geo-
logical sequestration field demonstrations; 
‘‘(iv) quantitative assessment of risks 
relating to specific field sites for testing of 
sequestration technologies; and 
‘‘(v) research and development of new 
and improved technologies for carbon use, 
including recycling and reuse of carbon di-
oxide. 
‘‘(2) 
CARBON
CAPTURE
DEMONSTRATION 
PROJECT.— 
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176 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a demonstration of large-scale carbon 
dioxide capture from an appropriate gasification 
facility selected by the Secretary. 
‘‘(B) LINK TO STORAGE ACTIVITIES.—The 
Secretary may require the use of carbon dioxide 
from the project carried out under subpara-
graph (A) in a field testing validation activity 
under this section. 
‘‘(3) FIELD
VALIDATION
TESTING
ACTIVI-
TIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
promote, to the maximum extent practicable, 
regional carbon sequestration partnerships to 
conduct geologic sequestration tests involving 
carbon dioxide injection and monitoring, mitiga-
tion, and verification operations in a variety of 
candidate geological settings, including— 
‘‘(i) operating oil and gas fields; 
‘‘(ii) depleted oil and gas fields; 
‘‘(iii) unmineable coal seams; 
‘‘(iv) deep saline formations; 
‘‘(v) deep geological systems that may 
be used as engineered reservoirs to extract 
economical quantities of heat from geo-
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177 
thermal resources of low permeability or 
porosity; and 
‘‘(vi) deep geologic systems containing 
basalt formations. 
‘‘(B) OBJECTIVES.—The objectives of tests 
conducted under this paragraph shall be— 
‘‘(i) to develop and validate geo-
physical tools, analysis, and modeling to 
monitor, predict, and verify carbon dioxide 
containment; 
‘‘(ii) to validate modeling of geological 
formations; 
‘‘(iii) to refine storage capacity esti-
mated for particular geological formations; 
‘‘(iv) to determine the fate of carbon 
dioxide concurrent with and following in-
jection into geological formations; 
‘‘(v) to develop and implement best 
practices for operations relating to, and 
monitoring of, injection and storage of car-
bon dioxide in geologic formations; 
‘‘(vi) to assess and ensure the safety 
of operations related to geological storage 
of carbon dioxide; and 
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178 
‘‘(vii) to allow the Secretary to pro-
mulgate policies, procedures, requirements, 
and guidance to ensure that the objectives 
of this subparagraph are met in large-scale 
testing and deployment activities for car-
bon capture and storage that are funded 
by the Department of Energy. 
‘‘(4) LARGE-SCALE
TESTING
AND
DEPLOY-
MENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct not less than 7 initial large-volume se-
questration tests for geological containment of 
carbon dioxide (at least 1 of which shall be 
international in scope) to validate information 
on the cost and feasibility of commercial deploy-
ment of technologies for geological containment 
of carbon dioxide. 
‘‘(B) DIVERSITY OF FORMATIONS TO BE 
STUDIED.—In selecting formations for study 
under this paragraph, the Secretary shall con-
sider a variety of geological formations across 
the United States, and require characterization 
and modeling of candidate formations, as deter-
mined by the Secretary. 
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179 
‘‘(5) PREFERENCE
IN
PROJECT
SELECTION 
FROM MERITORIOUS PROPOSALS.—In making com-
petitive awards under this subsection, subject to the 
requirements of section 989, the Secretary shall give 
preference to proposals from partnerships among in-
dustrial, academic, and government entities. 
‘‘(6) COST SHARING.—Activities under this sub-
section shall be considered research and development 
activities that are subject to the cost-sharing re-
quirements of section 988(b). 
‘‘(7) PROGRAM REVIEW AND REPORT.—During 
fiscal year 2011, the Secretary shall— 
‘‘(A) conduct a review of programmatic ac-
tivities carried out under this subsection; and 
‘‘(B) make recommendations with respect 
to continuation of the activities. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sec-
tion— 
‘‘(1) $150,000,000 for fiscal year 2008; 
‘‘(2) $200,000,000 for fiscal year 2009; 
‘‘(3) $200,000,000 for fiscal year 2010; 
‘‘(4) $180,000,000 for fiscal year 2011; and 
‘‘(5) $165,000,000 for fiscal year 2012.’’. 
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180 
SEC. 303. CARBON DIOXIDE STORAGE CAPACITY ASSESS-
MENT. 
(a) DEFINITIONS.—In this section 
(1) ASSESSMENT.—The term ‘‘assessment’’ 
means the national assessment of capacity for car-
bon dioxide completed under subsection (f). 
(2) CAPACITY.—The term ‘‘capacity’’ means the 
portion of a storage formation that can retain car-
bon dioxide in accordance with the requirements (in-
cluding physical, geological, and economic require-
ments) established under the methodology developed 
under subsection (b). 
(3) ENGINEERED
HAZARD.—The term ‘‘engi-
neered hazard’’ includes the location and completion 
history of any well that could affect potential stor-
age. 
(4) RISK.—The term ‘‘risk’’ includes any risk 
posed 
by 
geomechanical, 
geochemical, 
hydrogeological, structural, and engineered hazards. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the United States Geological Survey. 
(6) STORAGE FORMATION.—The term ‘‘storage 
formation’’ 
means 
a 
deep 
saline 
formation, 
unmineable coal seam, or oil or gas reservoir that is 
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181 
capable of accommodating a volume of industrial 
carbon dioxide. 
(b) METHODOLOGY.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall develop 
a methodology for conducting an assessment under sub-
section (f), taking into consideration— 
(1) the geographical extent of all potential stor-
age formations in all States; 
(2) the capacity of the potential storage forma-
tions; 
(3) the injectivity of the potential storage for-
mations; 
(4) an estimate of potential volumes of oil and 
gas recoverable by injection and storage of industrial 
carbon dioxide in potential storage formations; 
(5) the risk associated with the potential stor-
age formations; and 
(6) the Carbon Sequestration Atlas of the 
United States and Canada that was completed by 
the Department of Energy in April 2006. 
(c) COORDINATION.— 
(1) FEDERAL COORDINATION.— 
(A) CONSULTATION.—The Secretary shall 
consult with the Secretary of Energy and the 
Administrator of the Environmental Protection 
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182 
Agency on issues of data sharing, format, devel-
opment of the methodology, and content of the 
assessment required under this title to ensure 
the maximum usefulness and success of the as-
sessment. 
(B) COOPERATION.—The Secretary of En-
ergy and the Administrator shall cooperate with 
the Secretary to ensure, to the maximum extent 
practicable, the usefulness and success of the 
assessment. 
(2) STATE
COORDINATION.—The Secretary 
shall consult with State geological surveys and other 
relevant entities to ensure, to the maximum extent 
practicable, the usefulness and success of the assess-
ment. 
(d) EXTERNAL REVIEW
AND PUBLICATION.—On 
completion of the methodology under subsection (b), the 
Secretary shall— 
(1) publish the methodology and solicit com-
ments from the public and the heads of affected 
Federal and State agencies; 
(2) establish a panel of individuals with exper-
tise in the matters described in paragraphs (1) 
through (5) of subsection (b) composed, as appro-
priate, of representatives of Federal agencies, insti-
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183 
tutions of higher education, nongovernmental organi-
zations, State organizations, industry, and inter-
national geoscience organizations to review the 
methodology and comments received under para-
graph (1); and 
(3) on completion of the review under para-
graph (2), publish in the Federal Register the re-
vised final methodology. 
(e) PERIODIC UPDATES.—The methodology devel-
oped under this section shall be updated periodically (in-
cluding at least once every 5 years) to incorporate new 
data as the data becomes available. 
(f) NATIONAL ASSESSMENT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of publication of the methodology under 
subsection (d)(1), the Secretary, in consultation with 
the Secretary of Energy and State geological sur-
veys, shall complete a national assessment of capac-
ity for carbon dioxide in accordance with the meth-
odology. 
(2) GEOLOGICAL
VERIFICATION.—As part of 
the assessment under this subsection, the Secretary 
shall carry out a drilling program to supplement the 
geological data relevant to determining storage ca-
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pacity of carbon dioxide in geological storage forma-
tions, including— 
(A) well log data; 
(B) core data; and 
(C) fluid sample data. 
(3) PARTNERSHIP WITH OTHER DRILLING PRO-
GRAMS.—As part of the drilling program under 
paragraph (2), the Secretary shall enter, as appro-
priate, into partnerships with other entities to collect 
and integrate data from other drilling programs rel-
evant to the storage of carbon dioxide in geologic 
formations. 
(4) INCORPORATION INTO NATCARB.— 
(A) IN GENERAL.—On completion of the 
assessment, the Secretary of Energy shall incor-
porate the results of the assessment using the 
NatCarb database, to the maximum extent 
practicable. 
(B) RANKING.—The database shall include 
the data necessary to rank potential storage 
sites for capacity and risk, across the United 
States, within each State, by formation, and 
within each basin. 
(5) REPORT.—Not later than 180 days after 
the date on which the assessment is completed, the 
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185 
Secretary shall submit to the Committee on Energy 
and Natural Resources of the Senate and the Com-
mittee on Science and Technology of the House of 
Representatives a report describing the findings 
under the assessment. 
(6) PERIODIC UPDATES.—The national assess-
ment developed under this section shall be updated 
periodically (including at least once every 5 years) to 
support public and private sector decisionmaking. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$30,000,000 for the period of fiscal years 2008 through 
2012. 
SEC. 304. CARBON CAPTURE AND STORAGE INITIATIVE. 
(a) INDUSTRIAL SOURCES OF CARBON DIOXIDE DE-
FINED.—In this section, the term ‘‘industrial sources of 
carbon dioxide’’ means one or more facilities to— 
(1) generate electric energy from fossil fuels; 
(2) refine petroleum; 
(3) manufacture iron or steel; 
(4) manufacture cement or cement clinker; 
(5) manufacture commodity chemicals (includ-
ing from coal gasification); or 
(6) manufacture transportation fuels from coal. 
(b) PROGRAM ESTABLISHMENT.— 
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186 
(1) IN
GENERAL.—The Secretary shall carry 
out a program to demonstrate technologies for the 
large-scale capture of carbon dioxide from industrial 
sources of carbon dioxide. 
(2) SCOPE OF AWARD.—An award under this 
section shall be only for the portion of the project 
that carries out the large-scale capture (including 
purification and compression) of carbon dioxide, as 
well as the cost of transportation and injection of 
carbon dioxide. 
(3) QUALIFICATIONS FOR AWARD.—To be eligi-
ble for an award under this section, a project pro-
posal must include the following: 
(A) CAPACITY.—The capture of not less 
than eighty-five percent of the produced carbon 
dioxide at the facility, and not less than 
500,000 short tons of carbon dioxide per year. 
(B) STORAGE
AGREEMENT.—A binding 
agreement for the storage of all of the captured 
carbon dioxide in— 
(i) a field testing validation activity 
under section 963 of the Energy Policy Act 
of 2005, as amended by this Act; or 
(ii) other geological storage projects 
approved by the Secretary. 
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(C) PURITY LEVEL.—A purity level of at 
least 95 percent for the captured carbon dioxide 
delivered for storage. 
(D) COMMITMENT TO CONTINUED OPER-
ATION OF SUCCESSFUL UNIT.—If the project 
successfully demonstrates capture and storage 
of carbon dioxide, a commitment to continued 
capture and storage of carbon dioxide after the 
conclusion of the demonstration. 
(4) COST-SHARING.—The cost-sharing require-
ments of section 988 of the Energy Policy Act of 
2005 shall apply to this section. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $100,000,000 per year for fiscal years 
2009 through 2013. 
Æ 
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