HR 3221 PCS
Sec. 9095. Requirements. 
Sec. 9096. Review and evaluation. 
Sec. 9097. Technical Assistance and Education Program. 
Sec. 9098. Authorization of appropriations. 
Subtitle B—Smart Grid Facilitation 
Sec. 9101. Short title. 
PART 1—SMART GRID 
Sec. 9111. Statement of policy on modernization of electricity grid. 
Sec. 9112. Grid Modernization Commission. 
Sec. 9113. Grid assessment and report. 
Sec. 9114. Federal matching fund for smart grid investment costs. 
Sec. 9115. Smart Grid technology deployment. 
Sec. 9116. Smart Grid Information Requirements. 
Sec. 9117. State consideration of incentives for Smart Grid. 
Sec. 9118. DOE study of security attributes of Smart Grid systems. 
PART 2—DEMAND RESPONSE 
Sec. 9121. Electricity sector demand response. 
Subtitle C—Loan Guarantees 
Sec. 9201. Amount of loans guaranteed. 
Sec. 9202. Exclusion of categories. 
Subtitle D—Renewable Fuel Infrastructure and International Cooperation 
PART 1—RENEWABLE FUEL INFRASTRUCTURE 
Sec. 9301. Renewable fuel infrastructure development. 
Sec. 9302. Prohibition on franchise agreement restrictions related to renewable 
fuel infrastructure. 
Sec. 9303. Renewable fuel dispenser requirements. 
Sec. 9304. Pipeline feasibility study. 
Sec. 9305. Study of ethanol-blended gasoline with greater levels of ethanol. 
Sec. 9306. Study of the adequacy of railroad transportation of domestically-pro-
duced renewable fuel. 
Sec. 9307. Standard specifications for biodiesel. 
Sec. 9308. Grants for cellulosic ethanol production. 
Sec. 9309. Consumer education campaign relating to flexible-fuel vehicles. 
Sec. 9310. Review of new renewable fuels or new renewable fuel additives. 
Sec. 9311. Domestic manufacturing conversion grant program. 
Sec. 9312. Cellulosic ethanol and biofuels research. 
Sec. 9313. Federal fleet fueling centers. 
Sec. 9314. Study of impact of increased renewable fuel use. 
Sec. 9315. Grants for renewable fuel production research and development in 
certain States. 
Sec. 9316. Study of effect of oil prices. 
Sec. 9317. Biodiesel as alternative fuel for CAFE´ purposes. 
PART 2—UNITED STATES-ISRAEL ENERGY COOPERATION 
Sec. 9321. Short title. 
Sec. 9322. Findings. 
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Sec. 9323. Grant program. 
Sec. 9324. International Energy Advisory Board. 
Sec. 9325. Definitions. 
Sec. 9326. Termination. 
Sec. 9327. Authorization of appropriations. 
Sec. 9328. Constitutional authority. 
Subtitle E—Advanced Plug-In Hybrid Vehicles and Components 
Sec. 9401. Advanced battery loan guarantee program. 
Sec. 9402. Domestic manufacturing conversion grant program. 
Sec. 9403. Plug-in hybrid vehicle program. 
Sec. 9404. Plug-in hybrid demonstration vehicles. 
Sec. 9405. Incentive for Federal and State fleets for medium and heavy duty 
hybrids. 
Sec. 9406. Inclusion of electric drive in Energy Policy Act of 1992. 
Sec. 9407. Near-term electric drive transportation deployment program. 
Sec. 9408. Studying the benefits of plug-in hybrid electric drive vehicles and 
electric drive transportation. 
Subtitle F—Availability of Critical Energy Information 
Sec. 9501. Findings. 
Sec. 9502. Assessment of resources. 
Subtitle G—Natural Gas Utilities 
Sec. 9511. Natural gas utilities. 
Subtitle H—Federal Renewable Portfolio Standard 
Sec. 9611. Federal renewable portfolio standard. 
Subtitle I—Large and Small Scale Hydropower 
Sec. 9621. Sense of Congress. 
DIVISION B—RENEWABLE ENERGY AND ENERGY CONSERVATION 
TAX ACT OF 2007 
Sec. 10001. Short title; amendment of 1986 Code; table of contents. 
TITLE XI—PRODUCTION INCENTIVES 
Sec. 11001. Extension and modification of renewable energy credit. 
Sec. 11002. Production credit for electricity produced from marine renewables. 
Sec. 11003. Extension and modification of energy credit. 
Sec. 11004. New clean renewable energy bonds. 
Sec. 11005. Extension and modification of special rule to implement FERC and 
State electric restructuring policy. 
Sec. 11006. Repeal of dollar limitation and allowance against alternative min-
imum tax for residential solar and fuel cell property credit. 
TITLE XII—CONSERVATION 
Subtitle A—Transportation 
Sec. 12001. Credit for plug-in hybrid vehicles. 
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Sec. 12002. Extension and modification of alternative fuel vehicle refueling 
property credit. 
Sec. 12003. Extension and modification of credits for biodiesel and renewable 
diesel. 
Sec. 12004. Credit for production of cellulosic alcohol. 
Sec. 12005. Extension of transportation fringe benefit to bicycle commuters. 
Sec. 12006. Modification of limitation on automobile depreciation. 
Sec. 12007. Restructuring of New York Liberty Zone tax credits. 
Subtitle B—Other Conservation Provisions 
Sec. 12011. Qualified energy conservation bonds. 
Sec. 12012. Qualified residential energy efficiency assistance bonds. 
Sec. 12013. Extension of energy efficient commercial buildings deduction. 
Sec. 12014. Modifications of energy efficient appliance credit for appliances 
produced after 2007. 
Sec. 12015. Five-year applicable recovery period for depreciation of qualified 
energy management devices. 
TITLE XIII—REVENUE PROVISIONS 
Subtitle A—Denial of Oil and Gas Tax Benefits 
Sec. 13001. Denial of deduction for income attributable to domestic production 
of oil, natural gas, or primary products thereof. 
Sec. 13002. 7-year amortization of geological and geophysical expenditures for 
certain major integrated oil companies. 
Sec. 13003. Clarification of determination of foreign oil and gas extraction in-
come. 
Subtitle B—Clarification of Eligibility for Certain Fuel Credits 
Sec. 13011. Clarification of eligibility for renewable diesel credit. 
Sec. 13012. Clarification that credits for fuel are designed to provide an incen-
tive for United States production. 
TITLE XIV—OTHER PROVISIONS 
Subtitle A—Studies 
Sec. 14001. Carbon audit of the tax code. 
Sec. 14002. Comprehensive study of biofuels. 
Subtitle B—Application of Certain Labor Standards on Projects Financed 
Under Tax Credit Bonds 
Sec. 14011. Application of certain labor standards on projects financed under 
tax credit bonds. 
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DIVISION 
A—NEW 
DIRECTION 
FOR 
ENERGY 
INDEPEND-
ENCE, NATIONAL SECURITY, 
AND CONSUMER PROTECTION 
ACT 
TITLE I—GREEN JOBS 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Green Jobs Act of 
2007’’. 
SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY 
WORKER TRAINING PROGRAM. 
Section 171 of the Workforce Investment Act of 1998 
(29 U.S.C. 2916) is amended by adding at the end the 
following: 
‘‘(e) ENERGY EFFICIENCY
AND RENEWABLE EN-
ERGY WORKER TRAINING PROGRAM.— 
‘‘(1) GRANT PROGRAM.— 
‘‘(A) IN
GENERAL.—Not later than 6 
months after the date of enactment of the 
Green Jobs Act of 2007, the Secretary, in con-
sultation with the Secretary of Energy, shall es-
tablish an energy efficiency and renewable en-
ergy worker training program under which the 
Secretary shall carry out the activities described 
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in paragraph (2) to achieve the purposes of this 
subsection. 
‘‘(B) ELIGIBILITY.—For purposes of pro-
viding assistance and services under the pro-
gram established under this subsection— 
‘‘(i) target populations of eligible indi-
viduals to be given priority for training 
and other services shall include— 
‘‘(I) workers affected by national 
energy and environmental policy; 
‘‘(II) individuals in need of up-
dated training related to the energy 
efficiency and renewable energy indus-
tries; and 
‘‘(III) veterans, or past and 
present members of reserve compo-
nents of the Armed Forces; 
‘‘(IV) unemployed workers; 
‘‘(V) individuals, including at-risk 
youth, seeking employment pathways 
out of poverty and into economic self- 
sufficiency; and 
‘‘(VI) formerly incarcerated, ad-
judicated, non-violent offenders; 
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‘‘(ii) energy efficiency and renewable 
energy industries eligible to participate in 
a program under this subsection include— 
‘‘(I) the energy-efficient building, 
construction, and retrofits industries; 
‘‘(II) the renewable electric power 
industry; 
‘‘(III) the energy efficient and 
advanced drive train vehicle industry; 
‘‘(IV) the biofuels industry; 
‘‘(V) the deconstruction and ma-
terials use industries; 
‘‘(VI) the energy efficiency as-
sessment industry serving the residen-
tial, commercial, or industrial sectors; 
and 
‘‘(VII) 
manufacturers 
that 
produce sustainable products using 
environmentally sustainable processes 
and materials. 
‘‘(2) ACTIVITIES.— 
‘‘(A) NATIONAL
RESEARCH
PROGRAM.— 
Under the program established under para-
graph (1), the Secretary, acting through the 
Bureau of Labor Statistics, where appropriate, 
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(3) Has access to and utilizes the marine re-
sources in the Gulf of Mexico, the Atlantic Ocean, 
or the Pacific Ocean. 
The Secretary may give special consideration to histori-
cally black colleges and universities and land grant univer-
sities that also meet one of these criteria. In establishing 
criteria for the selection of Centers, the Secretary shall 
coordinate with the Undersecretary of Commerce for 
Oceans and Atmosphere on the criteria related to advanc-
ing wave forecasting technologies, studying the compat-
ibility with the environment of marine renewable energy 
technologies and systems, and establishing protocols for 
how the ocean community best interacts with marine re-
newable energy devices and parks. 
(b) PURPOSES.—The Centers shall advance research, 
development, demonstration, and commercial application 
of marine renewable energy through a number of initia-
tives including for the purposes described in section 
4104(1) through (13), and shall serve as an information 
clearinghouse for the marine renewable energy industry, 
collecting and disseminating information on best practices 
in all areas related to developing and managing enhanced 
marine renewable energy systems resources. 
(c) DEMONSTRATION OF NEED.—When applying for 
a grant under this section, an applicant shall include a 
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description of why Federal support is necessary for the 
Center, including evidence that the research of the Center 
will not be conducted in the absence of Federal support. 
SEC. 4106. APPLICABILITY OF OTHER LAWS. 
Nothing in this subtitle shall be construed as waiving 
the applicability of any requirement under any environ-
mental or other Federal or State law. 
SEC. 4107. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this subtitle $50,000,000 for each of 
the fiscal years 2008 through 2012, except that no funds 
shall be appropriated under this section for activities that 
are receiving funds under section 931(a)(2)(E)(i) of the 
Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)). 
Subtitle C—Geothermal Energy 
SEC. 4201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Advanced Geo-
thermal Energy Research and Development Act of 2007’’. 
SEC. 4202. FINDINGS. 
The Congress finds the following: 
(1) The United States has a critical national in-
terest in developing clean, domestic, renewable 
sources of energy in order to mitigate the causes of 
climate change, reduce other environmental impacts 
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of energy production, increase national security, im-
prove public health, and bolster economic stability. 
(2) Geothermal energy is a renewable energy re-
source. 
(3) Geothermal energy is unusual among renew-
able energy sources because of its ability to provide 
an uninterrupted supply of baseload electricity. 
(4) Recently published assessments by rep-
utable experts, including the Massachusetts Institute 
of Technology, the Western Governors Association, 
and the National Renewable Energy Laboratory, in-
dicate that the Nation’s geothermal resources are 
widely distributed, vast in size, and barely tapped. 
(5) Sustained and expanded research, develop-
ment, demonstration, and commercial application 
programs are needed to locate and characterize geo-
thermal resources, and to develop the technologies 
that will enable their widespread commercial devel-
opment. 
(6) Federal support is critical to reduce the fi-
nancial risk associated with developing new geo-
thermal technologies, thereby encouraging the pri-
vate sector investment necessary to make geothermal 
resources commercially viable as a source of electric 
power and for other applications. 
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SEC. 4203. DEFINITIONS. 
For purposes of this subtitle: 
(1) ENGINEERED.—When referring to enhanced 
geothermal systems, the term ‘‘engineered’’ means 
subjected to intervention, including intervention to 
address one or more of the following issues: 
(A) Lack of effective permeability or poros-
ity or open fracture connectivity within the res-
ervoir. 
(B) Insufficient contained geofluid in the 
reservoir. 
(C) A low average geothermal gradient, 
which necessitates deeper drilling. 
(2) ENHANCED GEOTHERMAL SYSTEMS.—The 
term ‘‘enhanced geothermal systems’’ means geo-
thermal reservoir systems that are engineered, as op-
posed to occurring naturally. 
(3) GEOFLUID.—The term ‘‘geofluid’’ means 
any fluid used to extract thermal energy from the 
Earth which is transported to the surface for direct 
use or electric power generation, except that such 
term shall not include oil or natural gas. 
(4) GEOPRESSURED
RESOURCES.—The term 
‘‘geopressured resources’’ mean geothermal deposits 
found in sedimentary rocks under higher than nor-
mal pressure and saturated with gas or methane. 
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(5) GEOTHERMAL.—The term ‘‘geothermal’’ re-
fers to heat energy stored in the Earth’s crust that 
can be accessed for direct use or electric power gen-
eration. 
(6) 
HYDROTHERMAL.—The 
term 
‘‘hydro-
thermal’’ refers to naturally occurring subsurface 
reservoirs of hot water or steam. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) SYSTEMS APPROACH.—The term ‘‘systems 
approach’’ means an approach to solving problems 
or designing systems that attempts to optimize the 
performance of the overall system, rather than a 
particular component of the system. 
SEC. 4204. HYDROTHERMAL RESEARCH AND DEVELOP-
MENT. 
(a) IN GENERAL.—The Secretary shall support pro-
grams of research, development, demonstration, and com-
mercial application to expand the use of geothermal en-
ergy production from hydrothermal systems, including the 
programs described in subsection (b). 
(b) PROGRAMS.— 
(1) ADVANCED
HYDROTHERMAL
RESOURCE 
TOOLS.—The Secretary, in consultation with other 
appropriate agencies, shall support a program to de-
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SEC. 4306. DAYLIGHTING SYSTEMS AND DIRECT SOLAR 
LIGHT PIPE TECHNOLOGY. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a program of research and development to provide assist-
ance in the demonstration and commercial application of 
direct solar renewable energy sources to provide alter-
natives to traditional power generation for lighting and il-
lumination, including light pipe technology, and to pro-
mote greater energy conservation and improved efficiency. 
All direct solar renewable energy devices supported under 
this program shall have the capability to provide measur-
able data on the amount of kilowatt-hours saved over the 
traditionally powered light sources they have replaced. 
(b) REPORTING.—The Secretary shall transmit to 
Congress an annual report assessing the measurable data 
derived from each project in the direct solar renewable en-
ergy sources program and the energy savings resulting 
from its use. 
(c) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘direct solar renewable energy’’ 
means energy from a device that converts sunlight 
into useable light within a building, tunnel, or other 
enclosed structure, replacing artificial light gen-
erated by a light fixture and doing so without the 
conversion of the sunlight into another form of en-
ergy; and 
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(2) the term ‘‘light pipe’’ means a device de-
signed to transport visible solar radiation from its 
collection point to the interior of a building while ex-
cluding interior heat gain in the nonheating season. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section $3,500,000 for each of the fiscal 
years 2008 through 2012. 
SEC. 4307. SOLAR AIR CONDITIONING RESEARCH AND DE-
VELOPMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a research, development, and demonstration program to 
promote less costly and more reliable decentralized distrib-
uted solar-powered air conditioning for individuals and 
businesses. 
(b) AUTHORIZED ACTIVITIES.—Grants made avail-
able under this section may be used to support the fol-
lowing activities: 
(1) Advancing solar thermal collectors, includ-
ing concentrating solar thermal and electric systems, 
flat plate and evacuated tube collector performance. 
(2) Achieving technical and economic integra-
tion of solar-powered distributed air-conditioning 
systems with existing hot water and storage systems 
for residential applications. 
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(3) Designing and demonstrating mass manu-
facturing capability to reduce costs of modular 
standardized solar-powered distributed air condi-
tioning systems and components. 
(4) Improving the efficiency of solar-powered 
distributed air-conditioning to increase the effective-
ness of solar-powered absorption chillers, solar-driv-
en compressors and condensors, and cost-effective 
precooling approaches. 
(5) Researching and comparing performance of 
solar-powered distributed air conditioning systems in 
different regions of the country, including potential 
integration with other onsite systems, such as solar, 
biogas, geothermal heat pumps, and propane assist 
or combined propane fuel cells, with a goal to de-
velop site-specific energy production and manage-
ment systems that ease fuel and peak utility loading. 
(c) COST SHARING.—The non-Federal share of re-
search and development projects supported under this sec-
tion shall be not less than 20 percent, and for demonstra-
tion projects shall be not less than 50 percent. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section $2,500,000 for each of the fiscal 
years 2008 through 2012. 
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SEC. 4308. PHOTOVOLTAIC DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
program of grants to States to demonstrate advanced pho-
tovoltaic technology. 
(b) REQUIREMENTS.— 
(1) ABILITY TO MEET REQUIREMENTS.—To re-
ceive funding under the program under this section, 
a State must submit a proposal that demonstrates, 
to the satisfaction of the Secretary, that the State 
will meet the requirements of subsection (f). 
(2) COMPLIANCE WITH REQUIREMENTS.—If a 
State has received funding under this section for the 
preceding year, the State must demonstrate, to the 
satisfaction of the Secretary, that it complied with 
the requirements of subsection (f) in carrying out 
the program during that preceding year, and that it 
will do so in the future, before it can receive further 
funding under this section. 
(3) FUNDING ALLOCATION.—Each State sub-
mitting a qualifying proposal shall receive funding 
under the program based on the proportion of 
United States population in the State according to 
the 2000 census. In each fiscal year, the portion of 
funds attributable under this paragraph to States 
that have not submitted qualifying proposals in the 
time and manner specified by the Secretary shall be 
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distributed pro rata to the States that have sub-
mitted qualifying proposals in the specified time and 
manner. 
(c) COMPETITION.—If more than $25,000,000 is 
available for the program under this section for any fiscal 
year, the Secretary shall allocate 75 percent of the total 
amount of funds available according to subsection (b)(3), 
and shall award the remaining 25 percent on a competitive 
basis to the States with the proposals the Secretary con-
siders most likely to encourage the widespread adoption 
of photovoltaic technologies. 
(d) PROPOSALS.—Not later than 6 months after the 
date of enactment of this Act, and in each subsequent fis-
cal year for the life of the program, the Secretary shall 
solicit proposals from the States to participate in the pro-
gram under this section. 
(e) COMPETITIVE CRITERIA.—In awarding funds in 
a competitive allocation under subsection (c), the Sec-
retary shall consider— 
(1) the likelihood of a proposal to encourage the 
demonstration of, or lower the costs of, advanced 
photovoltaic technologies; and 
(2) the extent to which a proposal is likely to— 
(A) maximize the amount of photovoltaics 
demonstrated; 
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diesel, as is defined in subsection (a), in order to encour-
age the establishment of standards that will promote their 
utilization in the transportation and fuel delivery system. 
SEC. 4405. BIOGAS. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary shall submit to Congress a re-
port on any research and development challenges inherent 
in increasing to 5 percent of the transportation fuels sold 
in the United States fuel with biogas or a blend of biogas 
and natural gas. 
SEC. 4406. BIORESEARCH CENTERS FOR SYSTEMS BIOLOGY 
PROGRAM. 
Section 977(a)(1) of the Energy Policy Act of 2005 
(42 U.S.C. 16317(a)(1)) is amended by inserting before 
the period at the end the following: ‘‘, including the estab-
lishment of at least 5 bioresearch centers of varying sizes, 
as appropriate, that focus on biofuels, of which at least 
1 center shall be located in each of the 5 Petroleum Ad-
ministration for Defense Districts, which shall be estab-
lished for a period of 5 years, after which the grantee may 
reapply for selection on a competitive basis’’. 
SEC. 4407. GRANTS FOR BIOFUEL PRODUCTION RESEARCH 
AND DEVELOPMENT IN CERTAIN STATES. 
(a) IN
GENERAL.—The Secretary shall provide 
grants to eligible entities for research, development, dem-
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onstration, and commercial application of biofuel produc-
tion technologies in States with low rates of ethanol pro-
duction, including low rates of production of cellulosic bio-
mass ethanol, as determined by the Secretary. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under this section, an entity shall— 
(1)(A) be an institution of higher education (as 
defined in section 2 of the Energy Policy Act of 
2005 (42 U.S.C. 15801)) located in a State de-
scribed in subsection (a); or 
(B) be a consortium including at least 1 such 
institution of higher education, and industry, State 
agencies, Indian tribal agencies, National Labora-
tories, or local government agencies located in the 
State; and 
(2) have proven experience and capabilities with 
relevant technologies. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $25,000,000 for each of fiscal years 2008 
through 2010. 
SEC. 4408. BIOREFINERY ENERGY EFFICIENCY. 
Section 932 of Energy Policy Act of 2005 (42 U.S.C. 
16232), is amended by adding at the end the following 
new subsections: 
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‘‘(g) BIOREFINERY ENERGY EFFICIENCY.—The Sec-
retary shall establish a program of research, development, 
demonstration, and commercial application for increasing 
energy efficiency and reducing energy consumption in the 
operation of biorefinery facilities. 
‘‘(h) RETROFIT TECHNOLOGIES FOR THE DEVELOP-
MENT OF ETHANOL FROM CELLULOSIC MATERIALS.— 
The Secretary shall establish a program of research, devel-
opment, demonstration, and commercial application on 
technologies and processes to enable biorefineries that ex-
clusively use corn grain or corn starch as a feedstock to 
produce ethanol to be retrofitted to accept a range of bio-
mass, including lignocellulosic feedstocks.’’. 
SEC. 4409. STUDY OF INCREASED CONSUMPTION OF ETH-
ANOL-BLENDED 
GASOLINE 
WITH 
HIGHER 
LEVELS OF ETHANOL. 
(a) IN GENERAL.—The Secretary, in cooperation 
with the Secretary of Agriculture, the Administrator of the 
Environmental Protection Agency, and the Secretary of 
Transportation, shall conduct a study of the methods of 
increasing consumption in the United States of ethanol- 
blended gasoline with levels of ethanol that are not less 
than 10 percent and not more than 40 percent. 
(b) STUDY.—The study under subsection (a) shall in-
clude— 
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(1) a review of production and infrastructure 
constraints on increasing consumption of ethanol; 
(2) an evaluation of the environmental con-
sequences of the ethanol blends described in sub-
section (a) on evaporative and exhaust emissions 
from on-road, off-road, and marine vehicle engines; 
(3) an evaluation of the consequences of the 
ethanol blends described in subsection (a) on the op-
eration, durability, and performance of on-road, off- 
road, and marine vehicle engines; and 
(4) an evaluation of the life cycle impact of the 
use of the ethanol blends described in subsection (a) 
on carbon dioxide and greenhouse gas emissions. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report describing the results of the study con-
ducted under this section. 
SEC. 4410. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED 
VEHICLES TO USE E–85 FUEL. 
(a) IN GENERAL.—The Secretary, in consultation 
with the Secretary of Transportation, shall conduct a 
study of whether optimizing flexible fueled vehicles to op-
erate using E–85 fuel would increase the fuel efficiency 
of flexible fueled vehicles. 
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(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Science and Technology of the House 
of Representatives the Committee on Energy and Natural 
Resources of the Senate a report that describes the results 
of the study under this section, including any rec-
ommendations of the Secretary. 
SEC. 4411. STUDY OF ENGINE DURABILITY AND PERFORM-
ANCE ASSOCIATED WITH THE USE OF BIO-
DIESEL. 
(a) IN GENERAL.—Not later than 30 days after the 
date of enactment of this Act, the Secretary shall initiate 
a study on the effects of the use of biodiesel on the per-
formance and durability of engines and engine systems. 
(b) COMPONENTS.—The study under this section 
shall include— 
(1) an assessment of whether the use of bio-
diesel lessens the durability and performance of con-
ventional diesel engines and engine systems; and 
(2) an assessment of the effects referred to in 
subsection (a) with respect to biodiesel blends at 
varying concentrations, including the following per-
centage concentrations of biodiesel: 
(A) 5 percent biodiesel. 
(B) 10 percent biodiesel. 
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small-scale gasification technologies for production of 
biofuel from cellulosic feedstocks. 
SEC. 4414. STUDY OF OPTIMIZATION OF BIOGAS USED IN 
NATURAL GAS VEHICLES. 
(a) IN GENERAL.—The Secretary of Energy shall 
conduct a study of methods of increasing the fuel effi-
ciency of vehicles using biogas by optimizing natural gas 
vehicle systems that can operate on biogas, including the 
advancement of vehicle fuel systems and the combination 
of hybrid-electric and plug-in hybrid electric drive plat-
forms with natural gas vehicle systems using biogas. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of Energy shall 
submit to the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Science and 
Technology of the House of Representatives a report that 
describes the results of the study, including any rec-
ommendations of the Secretary. 
SEC. 4415. STANDARDS FOR BIOFUELS DISPENSERS. 
In the absence of appropriate private sector stand-
ards adopted prior to the date of enactment of this Act, 
and consistent with the National Technology Transfer and 
Advancement Act of 1995, the Secretary of Energy, in 
consultation with the Director of the National Institute 
of Standards and Technology, shall develop standards for 
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biofuel dispenser systems in order to promote broader 
biofuels adoption and utilization. 
SEC. 4416. ALGAL BIOMASS. 
Not later than 90 days after the date of enactment 
of this Act, the Secretary shall submit to the Committee 
on Science and Technology of the House of Representa-
tives and the Committee on Energy and Natural Re-
sources of the Senate a report on the progress of the re-
search and development that is being conducted on the 
use of algae as a feedstock for the production of biofuels. 
The report shall identify continuing research and develop-
ment challenges and any regulatory or other barriers 
found by the Secretary that hinder the use of this re-
source, as well as recommendations on how to encourage 
and further its development as a viable transportation 
fuel. 
SEC. 4417. UNIVERSITY BASED RESEARCH AND DEVELOP-
MENT GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a competitive grant program, in a geographically diverse 
manner, for projects submitted for consideration by insti-
tutions of higher education to conduct research and devel-
opment of renewable energy technologies. Each grant 
made shall not exceed $2,000,000. 
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(b) ELIGIBILITY.—Priority shall be given to institu-
tions of higher education with— 
(1) established programs of research in renew-
able energy; 
(2) locations that are low income or outside of 
an urbanized area; 
(3) a joint venture with an Indian tribe; and 
(4) proximity to trees dying of disease or insect 
infestation as a source of woody biomass. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$25,000,000 for carrying out this section. 
(d) DEFINITIONS.—In this section: 
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning as defined in section 126(c) of the 
Energy Policy Act of 2005. 
(2) INSTITUTIONS
OF
HIGHER
EDUCATION.— 
The term ‘‘institutions of higher education’’ has the 
meaning as defined in section 102(a) of the Higher 
Education Act of 1965. 
(3) RENEWABLE ENERGY.—The term ‘‘renew-
able energy’’ has the meaning as defined in section 
902 of the Energy Policy Act of 2005. 
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(4) URBANIZED AREA.—The term ‘‘urbanized 
area’’ has the mean as defined by the U.S. Bureau 
of the Census. 
Subtitle F—Carbon Capture and 
Storage 
SEC. 4501. SHORT TITLE. 
This subtitle may be cited as the ‘‘Department of En-
ergy Carbon Capture and Storage Research, Development, 
and Demonstration Act of 2007’’. 
SEC. 4502. CARBON CAPTURE AND STORAGE RESEARCH, 
DEVELOPMENT, AND DEMONSTRATION PRO-
GRAM. 
(a) AMENDMENTS.—Section 963 of the Energy Pol-
icy 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-
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ture and storage technologies related to electric 
power generating systems’’; 
(3) in subsection (b)— 
(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) FUNDAMENTAL SCIENCE AND ENGINEER-
ING
RESEARCH
AND
DEVELOPMENT
AND
DEM-
ONSTRATION
SUPPORTING
CARBON
CAPTURE
AND 
STORAGE TECHNOLOGIES.— 
‘‘(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 
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eral leasing law or any regulation, order, or lease 
under such a law, with the intent to defraud; 
‘‘(C) fail or refuse to make any royalty payment 
by the date required by any mineral leasing law or 
any regulation, order, or lease under such a law, 
with the intent to defraud; or 
‘‘(D) prepare, maintain, or submit any false, in-
accurate, or misleading report, notice, affidavit, 
record, data, or other written information or filing 
related to royalty payments that is required under 
any mineral leasing law or regulation issued under 
any mineral leasing law, with the intent to defraud. 
‘‘(2) A person who violates paragraph (1) shall be lia-
ble— 
‘‘(A) in the case of a violation of subparagraph 
(B) or (C) of paragraph (1) for an amount equal to 
3 times the royalty the person fails or refuses to 
pay, plus interest on that trebled amount measured 
from the first date the royalty payment was due; 
and 
‘‘(B) in the case of any violation, for a civil 
penalty of— 
‘‘(i) except as provided in clause (ii), up to 
$25,000 per violation for each day the violation 
continues; or 
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‘‘(ii) if the person failed or refused to 
make a payment of royalty owed in an amount 
less than $25,000, an amount equal to 150 per-
cent of the royalty owed that was not paid; 
‘‘(3) Paragraph (2) shall not apply to a violation of 
paragraph (1) if the person who commits the violation, 
within 30 days of knowing of the violation— 
‘‘(A) reports the violation to the Secretary or a 
representative designated by the Secretary; and 
‘‘(B) corrects the violation. 
‘‘(b) LEASE
ADMINISTRATION
VIOLATIONS.—Any 
person who— 
‘‘(1) fails to notify the Secretary of— 
‘‘(A) any designation by the person under 
section 102(a); or 
‘‘(B) any other assignment of obligations 
or responsibilities of the person under a lease; 
‘‘(2) fails or refuses to permit— 
‘‘(A) lawful entry; 
‘‘(B) inspection, including any inspection 
authorized by section 108; or 
‘‘(C) audit, including any failure or refusal 
to promptly tender requested documents; 
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