I
107TH CONGRESS
1ST SESSION
H. R. 3274
To provide assistance to those individuals most affected by high energy
prices and to promote and accelerate energy conservation investments
in the United States.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 2001
Mr. SANDERS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Energy
and Commerce, and Education and the Workforce, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide assistance to those individuals most affected by
high energy prices and to promote and accelerate energy
conservation investments in the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Comprehensive Energy Conservation Act for the 21st
Century’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Findings and purposes.
TITLE I—ENERGY CONSERVATION
Sec. 101. Increased funding for LIHEAP, weatherization, and State energy
grants.
Sec. 102. Funding for the Energy Star program.
Sec. 103. Increased average fuel economy standards.
Sec. 104. Renewable energy.
Sec. 105. Fuel efficient tire program.
TITLE II—TAX PROVISIONS
Subtitle A—Credits
Sec. 201. Credit for purchase of Energy Star products.
Sec. 202. Credit for purchasing fuel efficient American-made passenger vehi-
cles.
Subtitle B—Windfall Profits Tax
Sec. 211. Windfall profits tax.
Sec. 212. Windfall profits fund.
Sec. 213. Reasonable profits board.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) high energy costs are causing hardship for
families;
(2) restructured energy markets have increased
the need for a higher and more consistent level of
funding for low income energy assistance programs;
(3) conservation programs implemented by the
States and the low income weatherization program
reduce costs and need for additional energy supplies;
(4) raising the Corporate Average Fuel Econ-
omy (CAFE) standards to 45 miles per gallon for
cars, and 34 miles per gallon for light trucks, over
the 
next 
decade 
would 
save 
consumers
$80,000,000,000 a year at the pump, reduce green-
house 
gas 
emissions 
by 
more 
than
1,500,000,000,000 
pounds 
a 
year, 
and 
save
51,000,000,000 barrels of oil over the next 50 years,
more than 15 times the likely yield from the Arctic
National Wildlife Refuge; and
(5) upgrading the quality of replacement tires
to match that of tires that come as standard equip-
ment on new cars would save 5,400,000,000 barrels
of oil over the next 50 years - 70 percent more than
the total amount of oil that would likely be pumped
from the Arctic National Wildlife Refuge over the
same time period.
(b) PURPOSES.—The purposes of this Act are to pro-
vide assistance to those individuals most affected by high
energy prices, to enhance national security, and to pro-
mote and accelerate energy conservation investments in
the United States.
TITLE I—ENERGY
CONSERVATION
SEC. 101. INCREASED FUNDING FOR LIHEAP, WEATHERIZA-
TION, AND STATE ENERGY GRANTS.
(a) LIHEAP.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is
amended by striking the first sentence and inserting
the following: ‘‘There are authorized to be appro-
priated to carry out the provisions of this title (other
than section 2607A), $9,000,000,000 for fiscal year
2002, $12,600,000,000 for fiscal year 2003, and
$12,600,000,000 for fiscal year 2004.’’.
(2) STATE ALLOTMENTS.—Section 2604(a)(2)
of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8623(a)(2)) is amended by striking
‘‘, except that States’’ and all that follows through
‘‘$2,140,000,000’’.
(b) WEATHERIZATION ASSISTANCE.—Section 422 of
the Energy Conservation and Production Act (42 U.S.C.
6872) is amended by striking ‘‘for fiscal years 1999
through 2003 such sums as may be necessary’’ and insert-
ing 
‘‘$1,000,000,000 
for 
fiscal 
year 
2002 
and
$2,000,000,000 for fiscal year 2003’’.
(c) STATE ENERGY CONSERVATION GRANTS.—Sec-
tion 365(f) of the Energy Policy and Conservation Act (42
U.S.C. 6325(f)) is amended by striking ‘‘for fiscal years
1999 through 2003 such sums as may be necessary’’ and
inserting ‘‘$75,000,000 for fiscal year 2002 and
$100,000,000 for fiscal year 2003’’.
SEC. 102. FUNDING FOR THE ENERGY STAR PROGRAM.
For purposes of carrying out the Energy Star pro-
gram, there are authorized to be appropriated—
(1) to the Administrator of the Environmental
Protection Agency $150,000,000 for fiscal year
2002 and $200,000,000 for fiscal year 2003; and
(2) to the Secretary of Energy $100,000,000
for fiscal year 2002 and $150,000,000 for fiscal
year 2003.
SEC. 103. INCREASED AVERAGE FUEL ECONOMY STAND-
ARDS.
(a) INCREASED STANDARDS.—Section 32902 of title
49, United States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘NON-PASSENGER AUTO-
MOBILES.—’’ and inserting ‘‘PRESCRIPTION OF
STANDARDS BY REGULATION.—’’; and
(B) by striking ‘‘(except passenger auto-
mobiles)’’ and inserting ‘‘(except passenger
automobiles and light trucks)’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) 
PASSENGER
AUTOMOBILES
AND
LIGHT
TRUCKS.—
‘‘(1) PASSENGER AUTOMOBILES, GENERALLY.—
(A) Except as provided in subparagraph (B) of this
paragraph and in paragraph (2), the average fuel
economy standard for passenger automobiles manu-
factured by a manufacturer in a model year shall be
45.0 miles per gallon.
‘‘(B) The average fuel economy standard for
passenger automobiles manufactured by a manufac-
turer in a model year after model year 2004 and be-
fore model year 2011 shall be not less than 34.0
miles per gallon.
‘‘(2) LIGHT TRUCKS.—(A) Except as provided
in subparagraph (B), the average fuel economy
standard for light trucks manufactured by a manu-
facturer in a model year shall be 34.0 miles per gal-
lon.
‘‘(B) The average fuel economy standard for
light trucks manufactured by a manufacturer in a
model year after model year 2004 and before model
year 2011 shall be not less than 27.5 miles per gal-
lon.’’.
(b) 
DEFINITION
OF
LIGHT
TRUCK.—Section
32901(a) of title 49, United States Code, is amended by
adding at the end the following:
‘‘(17) ‘light truck’ has the meaning given that
term in regulations prescribed by the Secretary of
Transportation in the administration of this chap-
ter.’’.
(c) CONFORMING AMENDMENTS.—Section 32902(c)
of title 49, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘the stand-
ard’’ and inserting ‘‘a standard’’; and
(2) in paragraph (2), by striking ‘‘increases the
standard above 27.5 miles per gallon, or decreases
the standard below 26.0 miles per gallon,’’ and in-
serting ‘‘increases the standard above 34.0 miles per
gallon or decreases the standard below 32.5 miles
per gallon in the case of light trucks, or increases
the standard above 45.0 miles per gallon or de-
creases the standard below 43.5 miles per gallon in
the case of passenger automobiles,’’.
(d) APPLICABILITY OF EXISTING STANDARDS.—This
section does not affect the application of section 32902
of title 49, United States Code, to passenger automobiles
and light trucks manufactured before model year 2003.
SEC. 104. RENEWABLE ENERGY.
(a) STANDARD.—Title VI of the Public Utility Regu-
latory Policies Act of 1978 (16 U.S.C. 2621 note) is
amended by adding the following new section after section
604:
‘‘SEC. 605. FEDERAL RENEWABLE PORTFOLIO STANDARD.
‘‘(a) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—(1) For each calendar year beginning with cal-
endar year 2002, every retail electric supplier shall submit
to the Secretary Renewable Energy Credits in an amount
equal to the required annual percentage, specified in sub-
section (b), of the total electric energy sold by the retail
electric supplier to electric consumers during the calendar
year. The retail electric supplier shall make such submis-
sion before April 1 of the following calendar year.
‘‘(2) For purposes of this section a ‘renewable energy
facility’ means an electric generation facility that gen-
erates electric energy through the use of solar energy,
wind, geothermal, or biomass.
‘‘(3) This section does not preclude a State from re-
quiring additional renewable energy generation in that
State.
‘‘(b) REQUIRED ANNUAL PERCENTAGE.—(1) The
Secretary shall determine the percentage of the total elec-
tric energy sold by retail electric suppliers to electric con-
sumers in the United States that is renewable energy for
the calendar year 2001.
‘‘(2) The Secretary shall determine the required an-
nual percentage for calendar years 2002 through 2019.
This percentage shall be greater than the percentage in
paragraph (1) and less than the percentage in paragraph
(3) and shall be selected to promote a smooth transition
to the percentage in paragraph (3).
‘‘(3) For calendar years 2020 and thereafter, the re-
quired annual percentage is 20 percent.
‘‘(c) SUBMISSION OF CREDITS.—A retail electric sup-
plier may satisfy the requirements of subsection (a)
through the submission of—
‘‘(1) renewable energy credits issued under sub-
section (d) for renewable energy generated by the re-
tail electric supplier in the calendar year for which
Renewable Energy Credits are being submitted or in
any previous calendar year.
‘‘(2) renewable energy credits issued under sub-
section (d) to any entity for renewable energy gen-
erated in the calendar year for which renewable en-
ergy credits are being submitted or in any previous
calendar year and acquired by the retail electric sup-
plier; or
‘‘(3) any combination of renewable energy cred-
its under paragraphs (1) and (2).
‘‘(d) ISSUANCE
OF CREDITS.—(1) The Secretary
shall establish, not later than one year after the date of
enactment of this section, a program to issue, monitor the
sale or exchange of, and track Renewable Energy Credits.
‘‘(2) An entity that generates electric energy through
the use of a renewable energy facility may apply to the
Secretary for the issuance of Renewable Energy Credits.
The application shall indicate—
‘‘(A) the type of renewable energy resource
used to produce the electric energy;
‘‘(B) the State in which the electric energy
was produced; and
‘‘(C) any other information the Secretary
deems appropriate.
‘‘(3)(A) Except as provided in paragraph (B),
the Secretary shall issue to an entity 1 Renewable
Energy Credit for each kilowatt-hour of electric en-
ergy the entity generates through the use of a re-
newable energy facility in any State in 2002 or in
any succeeding year.
‘‘(B) To be eligible for a Renewable Energy
Credit, the unit of electricity generated through the
use of a renewable energy facility may be sold or
may be used by the generator. If an electric genera-
tion facility uses both a renewable energy resource
and a nonrenewable energy resource to generate
electric energy, the number of credits issued for a
calendar year shall equal the percentage of the elec-
tric energy generated by the electric generation facil-
ity during such calendar year that is generated
through the use of a renewable energy resource,
multiplied by the total amount of kilowatt-hours of
electric energy generated by the electric generation
facility during such calendar year. The Secretary
shall identify Renewable Energy Credits by type of
renewable energy resource used and by the State in
which the generating facility is located.
‘‘(4) In order to receive a Renewable Energy
Credit, the recipient of a Renewable Energy Credit
shall pay a fee, calculated by the Secretary, that
equals the administrative costs of issuing, recording,
monitoring the sale or exchange of, and tracking the
Renewable Energy Credit, or that equal 5 percent of
the dollar value of the Renewable Energy Credit,
whichever is less. The Secretary shall retain the fee
and use it to pay such administrative costs.
‘‘(5) When a generator sells electric energy gen-
erated through the use of a renewable energy facility
to a retail electric supplier under a contract subject
to section 210 of this Act, for the purposes of this
section the retail electric supplier shall be treated as
the generator of the electric energy for the duration
of the contract.
‘‘(e) SALE
OR EXCHANGE.—A Renewable Energy
Credit may be sold or exchanged by the entity to which
issued or by any other entity that acquires the Renewable
Energy Credit. A Renewable Energy Credit issued during
any year that is not used to satisfy the minimum renew-
able generation requirement of subsection (a) for that year
may be carried forward for use in a succeeding year.
‘‘(f) ENFORCEMENT.—The Secretary may bring an
action in the appropriate United States district court to
improve a civil penalty on a retail electric supplier that
does not comply with subsection (a). Such civil penalty
shall equal not more than 3 times the value of the Renew-
able Energy Credits the retail electric supplier has failed
to submit, as determined by the Secretary.
‘‘(g) INFORMATION
COLLECTION.—The Secretary
may collect the information necessary to verify and
audit—
‘‘(1) the annual electric energy generation and
renewable energy generation of any entity applying
for Renewable Energy Credits under this section;
‘‘(2) the validity of Renewable Energy Credits
submitted by a retail electric supplier to the Sec-
retary; and
‘‘(3) the quantity of electricity sales of all retail
electric suppliers.’’.
(b) DEFINITIONS.—Section 3 of the Public Utilities
Regulatory Policies Act of 1978 (16 U.S.C. 2602) is
amended by adding at the end the following:
‘‘(22) The term ‘retail electric supplier’ means
a person, State agency, or Federal agency that sells
electric energy to an electric consumer.’’.
(b) TABLE OF CONTENTS.—The table of contents for
title VI of the Public Utility Regulatory Policies Act of
1978 is amended by adding the following item after the
item relating to section 604:
‘‘Sec. 605. Federal renewable portfolio standard.’’.
SEC. 105. FUEL EFFICIENT TIRE PROGRAM.
Section 30123 of title 49, United States Code, is
amended—
(1) in subsection (b)—
(A) by inserting ‘‘(1)’’ before the first sen-
tence; and
(B) by adding at the end the following:
‘‘(2) The uniform quality system shall include stand-
ards for rating tires for the following:
‘‘(A) Treadwear.
‘‘(B) Traction.
‘‘(C) Temperature resistance.
‘‘(D) Rolling resistance and fuel economy.’’;
and
(2) by adding at the end the following:
‘‘(d) NATIONAL
TIRE
FUEL
EFFICIENCY
PRO-
GRAM.—(1) The Secretary shall, after consulting with the
Administrator of the Environmental Protection Agency,
industry representatives, and other appropriate organiza-
tions, develop a national tire fuel efficiency program that
will develop fuel efficiency ratings and label requirements
for tires.
‘‘(2) The program shall include—
‘‘(A) specifications for testing procedures and
labels that will enable tire buyers to make more in-
formed purchasing decisions about the fuel efficiency
of tires;
‘‘(B) dissemination of information through la-
bels, catalogs, trade publications, or other mecha-
nisms, that will allow tire buyers to assess the en-
ergy consumption and potential costs savings of al-
ternative tire products;
‘‘(C) by no later than September 30, 2002, de-
velopment by the Secretary of recommendations for
minimum fuel efficiency standards for tires; and
‘‘(D) by no later than January 1, 2003, pre-
scription by the Secretary of minimum fuel efficiency
standards for tires.
‘‘(3) Recommendations and standards under para-
graph (2) (C) and (D), respectively, shall—
‘‘(A) be designed to ensure that the fuel effi-
ciency of replacement tires is equal to or better than
the fuel efficiency of tires sold as original equipment
on new vehicles;
‘‘(B) consider all safety implications; and
‘‘(C) ensure the standards do not adversely im-
pact tire safety.’’.
TITLE II—TAX PROVISIONS
Subtitle A—Credit for Energy Star
Products
SEC. 201. CREDIT FOR PURCHASE OF ENERGY STAR PROD-
UCTS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 30A the fol-
lowing new section:
‘‘SEC. 30B. CREDIT FOR PURCHASE OF ENERGY STAR PROD-
UCTS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of indi-
viduals and small employers, there shall be allowed as a
credit against the tax imposed by this chapter for the tax-
able year an amount equal to 30 percent of the amount
paid by the taxpayer for the purchase of any Energy Star
product during the taxable year.
‘‘(b) ENERGY STAR PRODUCT.—For purposes of this
section, the term ‘Energy Star product’ means a product
which—
‘‘(1) meets the guidelines, specifications, and
performance levels of the Energy Star program
jointly managed by the Environmental Protection
Agency and the Department of Energy, and
‘‘(2) displays the Energy Star label.
‘‘(c) SMALL EMPLOYER.—For purposes of this sec-
tion, the term ‘small employer’ means, with respect to any
calendar year, any employer if such employer employed an
average of 100 or fewer employees on business days during
either of the 2 preceding calendar years. For purposes of
the preceding sentence, a preceding calendar year may be
taken into account only if the employer was in existence
throughout such year.
‘‘(d) APPLICATION WITH OTHER CREDITS.—Except
as provided in subsection (e), the credit allowable under
subsection (a) for any taxable year shall not exceed the
excess (if any) of—
‘‘(1) the regular tax for the taxable year, re-
duced by the sum of the credits allowable under sub-
part A and the preceding sections of this subpart,
over
‘‘(2) the tentative minimum tax for the taxable
year.
‘‘(e) REFUNDABLE CREDIT
FOR CERTAIN TAX-
PAYERS.—In the case of an individual, if the adjusted
gross income of the taxpayer for the taxable year is
$75,000 or less ($150,000 or less in the case of a joint
return), the credit allowable under subsection (a) shall be
treated as a credit allowed under subpart C.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 30A the following new item:
‘‘Sec. 30B. Credit for purchase of Energy Star products.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
SEC. 202. CREDIT FOR PURCHASING FUEL-EFFICIENT
AMERICAN-MADE PASSENGER VEHICLES.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section: