130 
‘‘(5) The Administrator shall not list any source con-
structed after the date of the enactment of this Part on 
the Registry if the Administrator determines that such 
source— 
‘‘(A) was developed for the primary purpose of 
making sales of excess electric power under the reg-
ulatory treatment provided under this Part; or 
‘‘(B) does not capture at least 60 percent of the 
total energy value of the fuels used (on a lower-heat-
ing-value basis) in the form of useful thermal en-
ergy, electricity, mechanical energy, chemical output, 
or some combination of them. 
‘‘(e) SELF-CERTIFICATION.—Owners, operators, or 
third-party developers of industrial waste-energy projects 
that qualify under standards established by the Adminis-
trator may self-certify their sites or sources to the Admin-
istrator for inclusion in the Registry, subject to procedures 
adopted by the Administrator. To prevent a fraudulent 
listing, the sources shall be included on the Registry only 
if the Administrator confirms the submitted data, at the 
Administrator’s discretion. 
‘‘(f) NEW FACILITIES.—As a new energy-consuming 
industrial facility is developed after the enactment of this 
Part, to the extent it may constitute a site with recover-
able waste energy that may qualify for the Registry, the 
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Administrator may elect to include it in the Registry at 
the request of its owner or operator or developer on a con-
ditional basis, removing the site if its development ceases 
or it if fails to qualify for listing under this Part. 
‘‘(g) OPTIMUM MEANS OF RECOVERY.—For each site 
listed in the Registry, at the request of the owner or oper-
ator of the site, the Administrator shall offer, in coopera-
tion with Clean Energy Application Centers operated by 
the Secretary of Energy, suggestions of optimum means 
of recovery of value from waste energy stream in the form 
of electricity, useful thermal energy, or other energy-re-
lated products. 
‘‘(h) REVISION.—Each annual State report under 
section 548(a) of the National Energy Conservation Policy 
Act shall include the results of the survey for that State 
under this section. 
‘‘(i) AUTHORIZATION.—There are authorized to be 
appropriated to the Administrator for the purposes of cre-
ating and maintaining the Registry and services author-
ized by this section not more than $1,000,000 for each 
of fiscal years 2008, 2009, 2010, 2010, and 2012 and not 
more than $5,000,000 to the States to provide funding 
for State energy office functions under this section . 
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‘‘SEC. 374. WASTE ENERGY RECOVERY INCENTIVE GRANT 
PROGRAM. 
‘‘(a) ESTABLISHMENT OF PROGRAM.—There is es-
tablished in the Environmental Protection Agency a Waste 
Energy Recovery Incentive Grant Program to provide in-
centive grants to owners and operators of projects that 
successfully produce electricity or incremental useful ther-
mal energy from waste energy recovery (and to utilities 
purchasing or distributing such electricity) and to reward 
States that have achieved 80 percent or more of identified 
waste-heat recovery opportunities. 
‘‘(b) GRANTS TO PROJECTS AND UTILITIES.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
make grants to the owners or operators of waste en-
ergy recovery projects, and, in the case of excess 
power purchased or transmitted by a electric utility, 
to such utility. Grants may only be made upon re-
ceipt of proof of waste energy recovery or excess 
electricity generation, or both, from the project in a 
form prescribed by the Administrator, by rule. 
‘‘(2) EXCESS ELECTRIC ENERGY.—In the case 
of waste energy recovery, the grants under this sec-
tion shall be made at the rate of $10 per megawatt 
hour of documented electricity produced from recov-
ered waste energy (or by prevention of waste energy 
in the case of a new facility) by the project during 
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the first 3 calendar years of such production, begin-
ning on or after the date of enactment of this Part. 
If the project produces net excess power and an elec-
tric utility purchases or transmits the excess power, 
50 percent of so much of such grant as is attrib-
utable to the net excess power shall be paid to the 
electric utility purchasing or transporting the net ex-
cess power. 
‘‘(3) USEFUL THERMAL ENERGY.—In the case 
of waste energy recovery that produces useful ther-
mal energy that is used for a purpose different from 
that for which the project is principally designed, the 
grants under this section shall be made to the owner 
or operator of the waste energy recovery project at 
the rate of $10 for each 3,412,000 Btus of such ex-
cess thermal energy used for such different purpose. 
‘‘(c) GRANTS TO STATES.—In the case of States that 
have achieved 80 percent or more of waste-heat recovery 
opportunities identified by the Administrator under this 
Part, the Administrator shall make grants to the States 
of up to $1,000 per Megawatt of waste-heat capacity re-
covered (or its thermal equivalent) to support State-level 
programs to identify and achieve additional energy effi-
ciency. 
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‘‘(d) ELIGIBILITY.—The Administrator shall estab-
lish rules and guidelines to establish eligibility for grants, 
shall make the grant program known to those listed in 
the Registry, and shall offer such grants on the basis of 
the merits of each project in recovering or preventing 
waste energy throughout the United States on an impar-
tial, objective, and not unduly discriminatory basis. 
‘‘(e) AUTHORIZATION.—(1) There is authorized to be 
appropriated to the Administrator $100,000,000 for fiscal 
year 2008, and $200,000,000 for each of fiscal years 
2009, 2010, 2011, and 2012 for grants under subsection 
(b) of this section, and such additional amounts during 
those years and thereafter as may be necessary for admin-
istration of the Waste Energy Recovery Incentive Grant 
Program. 
‘‘(2) There is authorized to be appropriated to the 
Administrator not more than $10,000,000 for each of the 
first five fiscal years after the enactment of this Part, to 
be available until expended for purposes of grants to 
States under subsection (c). 
‘‘SEC. 375. ADDITIONAL INCENTIVES FOR RECOVERY, UTILI-
ZATION AND PREVENTION OF INDUSTRIAL 
WASTE ENERGY. 
‘‘(a) CONSIDERATION
OF
STANDARD.—Not later 
than 180 days after the receipt by a State regulatory au-
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the rate conditions and limitations described in subsection 
(d). 
‘‘(c) OPTIONS.—The options referred to in subsection 
(b) are as follows: 
‘‘(1) SALE OF NET EXCESS POWER TO UTIL-
ITY.—The electric utility shall purchase the net ex-
cess power from the owner or operator of the eligible 
waste-energy recovery project during the operation 
of the project under a contract entered into for that 
purpose. 
‘‘(2) TRANSPORT BY UTILITY FOR DIRECT SALE 
TO THIRD PARTY.—The electric utility shall transmit 
the net excess power on behalf of the project owner 
or operator to up to three separate locations on that 
utility’s system for direct sale by that owner or oper-
ator to third parties at such locations. 
‘‘(3) TRANSPORT OVER PRIVATE TRANSMISSION 
LINES.—The State and the electric utility shall per-
mit, and shall waive or modify such laws as would 
otherwise prohibit, the construction and operation of 
private electric wires constructed, owned and oper-
ated by the project owner or operator, to transport 
such power to up to 3 purchasers within a 3-mile ra-
dius of the project, allowing such wires to utilize or 
cross public rights-of-way, without subjecting the 
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project to regulation as a public utility, and accord-
ing such wires the same treatment for safety, zon-
ing, land-use and other legal privileges as apply or 
would apply to the utility’s own wires, except that— 
‘‘(A) there shall be no grant of any power 
of eminent domain to take or cross private 
property for such wires, and 
‘‘(B) such wires shall be physically seg-
regated and not interconnected with any portion 
of the utility’s system, except on the customer’s 
side of the utility’s revenue meter and in a 
manner that precludes any possible export of 
such electricity onto the utility system, or dis-
ruption of such system. 
‘‘(4) AGREED UPON ALTERNATIVES.—The util-
ity and the owner or operator of the project may 
reach agreement on any alternate arrangement and 
its associated payments or rates that is mutually 
satisfactory and in accord with State law. 
‘‘(d) RATE CONDITIONS AND CRITERIA.— 
‘‘(1) IN GENERAL.—The options described in 
paragraphs (1) and (2) in subsection (c) shall be of-
fered under purchase and transport rate conditions 
reflecting the rate components defined under para-
graph (2) of this subsection as applicable under the 
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circumstances described in paragraph (3) of this 
subsection. 
‘‘(2) RATE COMPONENTS.—For purposes of this 
section: 
‘‘(A) PER
UNIT
DISTRIBUTION
COSTS.— 
The term ‘per unit distribution costs’ means the 
utility’s depreciated book-value distribution sys-
tem costs divided by the previous year’s volume 
of utility electricity sales or transmission at the 
distribution level in kilowatt hours. 
‘‘(B) PER UNIT DISTRIBUTION MARGIN.— 
The term ‘per unit distribution margin’ means: 
‘‘(i) In the case of a State regulated 
electric utility, a per-unit gross pretax 
profit determined by multiplying the util-
ity’s State-approved percentage rate of re-
turn for distribution system assets by the 
per unit distribution costs. 
‘‘(ii) In the case of an nonregulated 
utility, a per unit contribution to net reve-
nues determined by dividing the amount of 
any net revenue payment or contribution 
to the nonregulated utility’s owners or sub-
scribers in the prior year by the utility’s 
gross revenues for the prior year to obtain 
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a percentage (but not less than 10 percent) 
and multiplying that percentage by the per 
unit distribution costs. 
‘‘(C) PER
UNIT
TRANSMISSION
COSTS.— 
The term ‘per unit transmission costs’ means 
the total cost of those transmission services 
purchased or provided by a utility on a per-kilo-
watt-hour basis as included in that utility’s re-
tail rate. 
‘‘(3) APPLICABLE RATES.— 
‘‘(A) RATES APPLICABLE TO SALE OF NET 
EXCESS
POWER.—Sales made by a project 
owner or operator under the option described in 
subsection (c) (1) shall be paid for on a per kil-
owatt hour basis that shall equal the full 
undiscounted retail rate paid to the utility for 
power purchased by such a facility minus per 
unit distribution costs, as applicable to the type 
of utility purchasing the power. If the net ex-
cess power is made available for purchase at 
voltages that must be transformed to or from 
voltages exceeding 25 kilovolts to be available 
for resale by the utility, then the purchase price 
shall further be reduced by per unit trans-
mission costs. 
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‘‘(B) RATES APPLICABLE TO TRANSPORT 
BY UTILITY FOR DIRECT SALE TO THIRD PAR-
TIES.—Transportation by utilities of power on 
behalf of the owner or operator of a project 
under the option described in subsection (c)(2) 
shall incur a transportation rate equal to the 
per unit distribution costs and per unit dis-
tribution margin, as applicable to the type of 
utility transporting the power. If the net excess 
power is made available for transportation at 
voltages that must be transformed to or from 
voltages exceeding 25 kilovolts to be trans-
ported to the designated third-party purchasers, 
then the transport rate shall further be in-
creased by per unit transmission costs. In 
States with competitive retail markets for elec-
tricity, the applicable transportation rate for 
similar transportation shall be applied in lieu of 
any rate calculated under this paragraph. 
‘‘(4) LIMITATIONS.—(A) Any rate established 
for sale or transportation under this section shall be 
modified over time with changes in the electric util-
ity’s underlying costs or rates, and shall reflect the 
same time-sensitivity and billing periods as are es-
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141 
tablished in the retail sales or transportation rates 
offered by the utility. 
‘‘(B) No utility shall be required to purchase or 
transport an amount of net excess power under this 
section that exceeds the available capacity of the 
wires, meter, or other equipment of the electric util-
ity serving the site unless the owner or operator of 
the project agrees to pay necessary and reasonable 
upgrade costs. 
‘‘(e) PROCEDURAL REQUIREMENTS FOR CONSIDER-
ATION AND DETERMINATION.—(1) The consideration re-
ferred to in subsection (b) shall be made after public no-
tice and hearing. The determination referred to in sub-
section (b) shall be— 
‘‘(A) in writing, 
‘‘(B) based upon findings included in such de-
termination and upon the evidence presented at the 
hearing, and 
‘‘(C) available to the public. 
‘‘(2) The Administrator may intervene as a matter 
of right in a proceeding conducted under this section and 
may calculate the energy and emissions likely to be saved 
by electing to adopt one or more of the options, as well 
as the costs and benefits to ratepayers and the utility and 
to advocate for the waste-energy recovery opportunity. 
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142 
‘‘(3) Except as otherwise provided in paragraph (1), 
and paragraph (2), the procedures for the consideration 
and determination referred to in subsection (a) shall be 
those established by the State regulatory authority or the 
nonregulated electric utility. In the instance that there is 
more than one project seeking such consideration simulta-
neously in connection with the same utility, such pro-
ceeding may encompass all such projects, provided that 
full attention is paid to their individual circumstances and 
merits, and an individual judgment is reached with respect 
to each project. 
‘‘(f) IMPLEMENTATION.—(1) The State regulatory 
authority (with respect to each electric utility for which 
it has ratemaking authority) or nonregulated electric util-
ity may, to the extent consistent with otherwise applicable 
State law— 
‘‘(A) implement the standard determined under 
this section, or 
‘‘(B) decline to implement any such standard. 
‘‘(2) If a State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
or nonregulated electric utility declines to implement any 
standard established by this section, such authority or 
nonregulated electric utility shall state in writing the rea-
sons therefor. Such statement of reasons shall be available 
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to the public, and the Administrator shall include the 
project in an annual report to Congress concerning lost 
opportunities for waste-heat recovery, specifically identi-
fying the utility and stating the amount of lost energy and 
emissions savings calculated. If a State regulatory author-
ity (with respect to each electric utility for which it has 
ratemaking authority) or nonregulated electric utility de-
clines to implement the standard established by this sec-
tion, the project sponsor may submit a new petition under 
this section with respect to such project at any time after 
24 months after the date on which the State regulatory 
authority or nonregulated utility has declined to imple-
ment such standard. 
‘‘SEC. 376. CLEAN ENERGY APPLICATION CENTERS. 
‘‘(a) PURPOSE.—The purpose of this section is to re-
name and provide for the continued operation of the 
United States Department of Energy’s Regional Com-
bined Heat and Power (CHP) Application Centers. 
‘‘(b) FINDINGS.—The Congress finds the Depart-
ment of Energy’s Regional Combined Heat and Power 
(CHP) Application Centers program has produced signifi-
cant energy savings and climate change benefits and will 
continue to do so through the deployment of clean energy 
technologies such as Combined Heat and Power (CHP), 
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recycled waste energy and biomass energy systems, in the 
industrial and commercial energy markets. 
‘‘(c) RENAMING.—The Combined Heat and Power 
Application Centers at the Department of Energy are 
hereby be redesignated as Clean Energy Application Cen-
ters. Any reference in any law, rule or regulation or publi-
cation to the Combined Heat and Power Application Cen-
ters shall be treated as a reference to the Clean Energy 
Application Centers. 
‘‘(d) RELOCATION.—In order to better coordinate ef-
forts with the separate Industrial Assessment Centers and 
to assure that the energy efficiency and, when applicable, 
the renewable nature of deploying mature clean energy 
technology is fully accounted for, the Secretary of Energy 
shall relocate the administration of the Clean Energy Ap-
plication Centers to the Office of Energy Efficiency and 
Renewable Energy within the Department of Energy. The 
Office of Electricity Delivery and Energy Reliability shall 
continue to perform work on the role of such technology 
in support of the grid and its reliability and security, and 
shall assist the Clean Energy Application Centers in their 
work with regard to the grid and with electric utilities. 
‘‘(e) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary of Energy 
shall make grants to universities, research centers, 
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and other appropriate institutions to assure the con-
tinued operations and effectiveness of 8 Regional 
Clean Energy Application Centers in each of the fol-
lowing regions (as designated for such purposes as 
of the date of the enactment of this section): 
‘‘(A) Gulf Coast. 
‘‘(B) Intermountain. 
‘‘(C) Mid-Atlantic. 
‘‘(D) Midwest. 
‘‘(E) Northeast. 
‘‘(F) Northwest. 
‘‘(G) Pacific. 
‘‘(H) Southeast. 
‘‘(2) ESTABLISHMENT OF GOALS AND COMPLI-
ANCE.—In making grants under this section, the 
Secretary shall ensure that sufficient goals are es-
tablished and met by each Center throughout the 
program duration concerning outreach and tech-
nology deployment. 
‘‘(f) ACTIVITIES.—Each Clean Energy Application 
Center shall operate a program to encourage deployment 
of clean energy technologies through education and out-
reach to building and industrial professionals, and to other 
individuals and organizations with an interest in efficient 
energy use. In addition, the Centers shall provide project 
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specific support to building and industrial professionals 
through assessments and advisory activities. Funds made 
available under this section may be used for the following 
activities: 
‘‘(1) Developing and distributing informational 
materials on clean energy technologies, including 
continuation of the eight existing Web sites. 
‘‘(2) Developing and conducting target market 
workshops, seminars, internet programs and other 
activities to educate end users, regulators, and 
stakeholders in a manner that leads to the deploy-
ment of clean energy technologies. 
‘‘(3) Providing or coordinating onsite assess-
ments for sites and enterprises that may consider 
deployment of clean energy technology. 
‘‘(4) Performing market research to identify 
high profile candidates for clean energy deployment. 
‘‘(5) Providing consulting support to sites con-
sidering deployment of clean energy technologies. 
‘‘(6) Assisting organizations developing clean 
energy technologies to overcome barriers to deploy-
ment. 
‘‘(7) Assisting companies and organizations 
with performance evaluations of any clean energy 
technology implemented. 
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‘‘(g) DURATION.—A grant awarded under this sec-
tion shall be for a period of 5 years. Each grant shall be 
evaluated annually for its continuation based on its activi-
ties and results. 
‘‘(h) AUTHORIZATION.—There is authorized to be ap-
propriated for purposes of this section the sum of 
$10,000,000 for each of fiscal years 2008, 2009, 2010, 
2011, and 2012.’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
such Act is amended by inserting the following after the 
items relating to part D of title III: 
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY 
‘‘Sec. 371. Survey of waste industrial energy recovery and potential use. 
‘‘Sec. 372. Definitions. 
‘‘Sec. 373. Survey and registry. 
‘‘Sec. 374. Incentives for recovery, utilization and prevention of industrial waste 
energy. 
‘‘Sec. 375. Clean Energy Application Centers.’’. 
Subtitle F—Energy Efficiency of 
Public Institutions 
SEC. 171. SHORT TITLE. 
This subtitle may be cited as the ‘‘Sustainable En-
ergy Institutional Infrastructure Act of 2007’’. 
SEC. 172. FINDINGS. 
The Congress finds the following: 
(1) Many institutional entities own and operate, 
or are served by, district energy systems. 
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(2) A variety of renewable energy resources 
could be tapped by governmental and institutional 
energy systems to meet energy requirements. 
(3) Use of these renewable energy resources to 
meet energy requirements will reduce reliance on 
fossil fuels and the associated emissions of air pollu-
tion and carbon dioxide. 
(4) CHP is a highly efficient and environ-
mentally beneficial means to generate electric energy 
and heat, and offers total efficiency much greater 
than conventional separate systems, where electric 
energy is generated at and transmitted long dis-
tances from a centrally located generation facility, 
and onsite heating and cooling equipment is used to 
meet nonelectric energy requirements. 
(5) Heat recovered in a CHP generation system 
can be used for space heating, domestic hot water, 
or process steam requirements, or can be converted 
to cooling energy to meet air conditioning require-
ments. 
(6) The increased efficiency of CHP results in 
reduction in emissions of air pollution and carbon di-
oxide. 
(7) District energy systems represent a key op-
portunity for expanding implementation of CHP be-
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cause district energy systems provide a means of de-
livering thermal energy from CHP to a substantial 
base of end users. 
(8) District energy systems help cut peak power 
demand and reduce power transmission and distribu-
tion system constraints by meeting air conditioning 
demand through delivery of chilled water produced 
with CHP-generated heat or other energy sources, 
shifting power demand through thermal storage, 
and, with CHP, generating power near load centers. 
(9) Evaluation and implementation of sustain-
able energy infrastructure is a complex undertaking 
involving a variety of technical, economic, legal, and 
institutional issues and barriers, and technical as-
sistance is often required to successfully navigate 
these barriers. 
(10) The major constraint to significant expan-
sion of sustainable energy infrastructure by institu-
tional entities is a lack of capital funding for imple-
mentation. 
SEC. 173. DEFINITIONS. 
For purposes of this subtitle— 
(1) the term ‘‘CHP’’ means combined heat and 
power, or the generation of electric energy and heat 
in a single, integrated system; 
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(2) the term ‘‘district energy systems’’ means 
systems providing thermal energy to buildings and 
other energy consumers from one or more plants to 
individual buildings to provide space heating, air 
conditioning, domestic hot water, industrial process 
energy, and other end uses; 
(3) the term ‘‘institutional entities’’ means local 
governments, public school districts, municipal utili-
ties, State governments, Federal agencies, and other 
entities established by local, State, or Federal agen-
cies to meet public purposes, and public or private 
colleges, universities, airports, and hospitals; 
(4) the term ‘‘renewable thermal energy 
sources’’ means non-fossil-fuel energy sources, in-
cluding biomass, geothermal, solar, natural sources 
of cooling such as cold lake or ocean water, and 
other sources that can provide heating or cooling en-
ergy; 
(5) the term ‘‘sustainable energy infrastruc-
ture’’ means facilities for production of energy from 
CHP or renewable thermal energy sources and dis-
tribution of thermal energy to users; and 
(6) the term ‘‘thermal energy’’ means heating 
or cooling energy in the form of hot water or steam 
(heating energy) or chilled water (cooling energy). 
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SEC. 174. TECHNICAL ASSISTANCE PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall, with funds appropriated for this purpose, implement 
a program of information dissemination and technical as-
sistance to institutional entities to assist them in identi-
fying, evaluating, designing, and implementing sustainable 
energy infrastructure. 
(b) INFORMATION DISSEMINATION.—The Secretary 
shall develop and disseminate information and assessment 
tools addressing— 
(1) identification of opportunities for sustain-
able energy infrastructure; 
(2) technical and economic characteristics of 
sustainable energy infrastructure; 
(3) utility interconnection, and negotiation of 
power and fuel contracts; 
(4) financing alternatives; 
(5) permitting and siting issues; 
(6) case studies of successful sustainable energy 
infrastructure systems; and 
(7) computer software for assessment, design, 
and operation and maintenance of sustainable en-
ergy infrastructure systems. 
(c) ELIGIBLE COSTS.—Upon application by an insti-
tutional entity, the Secretary may make grants to such 
applicant to fund— 
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153 
$15,000,000. Such loans shall be for constructing sustain-
able energy infrastructure, including— 
(1) plant facilities used for producing thermal 
energy, electricity, or both; 
(2) facilities for storing thermal energy; 
(3) facilities for distribution of thermal energy; 
and 
(4) costs for converting buildings to use ther-
mal energy from sustainable energy sources. 
(c) QUALIFICATIONS.—Loans from the SIRF may be 
made to institutional entities for projects meeting the 
qualifications and conditions established by the Secretary, 
including the following minimum qualifications: 
(1) The project shall be technically and eco-
nomically feasible as determined by a detailed feasi-
bility analysis performed or corroborated by an inde-
pendent consultant. 
(2) The borrower shall demonstrate that ade-
quate and comparable financing was not found to be 
reasonably available from other sources, and that 
the project is economically more feasible with the 
availability of the SIRF loan. 
(3) The borrower shall obtain commitments for 
the remaining capital required to implement the 
project, contingent on approval of the SIRF loan. 
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(4) The borrower shall provide to the Secretary 
reasonable assurance that all laborers and mechanics 
employed by contractors or subcontractors in the 
performance of construction work financed in whole 
or in part with a loan provided under this section 
will be paid wages at rates not less than those pre-
vailing on similar work in the locality as determined 
by the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States 
Code (commonly referred to as the Davis-Bacon 
Act). 
(d) FINANCING TERMS.—(1) Interest on a loan under 
this section may be a fixed rate or floating rate, and shall 
be equal to the Federal cost of funds consistent with the 
loan type and term, minus 1.5 percent. 
(2) Interest shall accrue from the date of the loan, 
but the first payment of interest shall be deferred, if de-
sired by the borrower, for a period ending not later than 
3 years after the initial date of operation of the system. 
(3) Interest attributable to the period of deferred 
payment shall be amortized over the remainder of the loan 
term. 
(4) Principal shall be repaid on a schedule established 
at the time the loan is made. Such payments shall begin 
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not later than 3 years after the initial date of operation 
of the system. 
(5) Loans made from the SIRF shall be repayable 
over a period ending not more than 20 years after the 
date the loan is made. 
(6) Loans shall be prepayable at any time without 
penalty. 
(7) SIRF loans shall be subordinate to other loans 
for the project. 
(e) FUNDING CYCLES.—Applications for loans from 
the SIRF shall be received on a periodic basis at least 
semiannually. 
(f) APPLICATION OF REPAYMENTS FOR DEFICIT RE-
DUCTION.—Loans from the SIRF shall be made, with 
funds available for this purpose, during the 10 years start-
ing from the date that the first loan from the fund is 
made. Until this 10-year period ends, funds repaid by bor-
rowers shall be deposited in the SIRF to be made available 
for additional loans. Once loans from the SIRF are no 
longer being made, repayments shall go directly into the 
United States Treasury. 
(g) PRIORITIES.—In evaluating projects for funding, 
priority shall be given to projects which— 
(1) maximize energy efficiency; 
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(2) minimize environmental impacts, including 
from regulated air pollutants, greenhouse gas emis-
sions, and the use of refrigerants known to cause 
ozone depletion; 
(3) use renewable energy resources; 
(4) maximize oil displacement; and 
(5) benefit economically-depressed areas. 
(h) REGULATIONS.—Not later than one year after 
the date of enactment of this Act, the Secretary of Energy 
shall develop a plan and adopt rules and procedures for 
establishing and operating the SIRF. 
(i) PROGRAM REVIEW.—Every two years the Sec-
retary shall report to the Congress on the status and 
progress of the SIRF. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$250,000,000 for fiscal year 2008 and $500,000,000 for 
each of the fiscal years 2009 through 2012. 
SEC. 176. REAUTHORIZATION OF STATE ENERGY PRO-
GRAMS. 
Section 365(f) of the Energy Policy and Conservation 
Act (42 U.S.C. 6325(f)) is amended by striking 
‘‘$100,000,000 for each of the fiscal years 2006 and 2007 
and $125,000,000 for fiscal year 2008’’ and inserting 
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‘‘$125,000,000 for each of the fiscal years 2007, 2008, 
2009, 2010, 2011, and 2012’’. 
Subtitle G—Energy Savings 
Performance Contracting 
SEC. 181. DEFINITION OF ENERGY SAVINGS. 
Section 804(2) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287c(2)) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively, 
and indenting appropriately; 
(2) by striking ‘‘means a reduction’’ and insert-
ing ‘‘means— 
‘‘(A) a reduction’’; 
(3) by striking the period at the end and insert-
ing a semicolon; and 
(4) by adding at the end the following: 
‘‘(B) the increased efficient use of an exist-
ing energy source by cogeneration or heat re-
covery, and installation of renewable energy sys-
tems; 
‘‘(C) if otherwise authorized by Federal or 
State law (including regulations), the sale or 
transfer of electrical or thermal energy gen-
erated onsite but in excess of Federal needs, to 
utilities or non-Federal energy users; and 
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(C) other measures that have the effect of 
increasing energy efficiency and decreasing en-
ergy consumption. 
(10) Development and implementation of build-
ing codes and inspection services for public, commer-
cial, industrial, and single and multifamily residen-
tial buildings to promote energy efficiency. 
(11) Application and implementation of alter-
native energy and energy distribution technologies 
that significantly increase energy efficiency and pro-
mote distributed resources and district heating and 
cooling systems. 
(12) Development and promotion of zoning 
guidelines or requirements that result in increased 
energy efficiency, efficient development, active living 
land use planning, and infrastructure such as bike 
lanes and pathways, and pedestrian walkways. 
(13) Promotion of greater participation and ef-
ficiency rates for material conservation programs, in-
cluding source reduction, recycling, and recycled 
content procurement programs that lead to increases 
in energy efficiency. 
(14) Establishment of a State, county, or city 
office to assist in the development and implementa-
tion of the Energy Efficiency Strategy. 
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SEC. 195. REQUIREMENTS. 
(a) REQUIREMENTS FOR ELIGIBLE UNITS OF LOCAL 
GOVERNMENT.— 
(1) PROPOSED STRATEGY.—Not later than 1 
year after being awarded a grant under this subtitle, 
an eligible unit of local government shall submit to 
the Secretary a proposed Energy Efficiency Strategy 
which establishes goals for increased energy effi-
ciency in the jurisdiction of the eligible units of local 
government. The Strategy shall include plans for the 
use of funds received under the grant to assist the 
eligible unit of local government in the achievement 
of such goals, consistent with section 194. In devel-
oping such a Strategy, an eligible unit of local gov-
ernment shall take into account any plans for the 
use of funds by adjoining eligible units of local gov-
ernments funded under this subtitle. 
(2) APPROVAL.—The Secretary shall approve or 
disapprove a proposed Strategy submitted under 
paragraph (1) not later than 90 days after receiving 
it. If the Secretary disapproves a proposed Strategy, 
the Secretary shall provide to the eligible unit of 
local government the reasons for such disapproval. 
The eligible unit of local government may revise and 
resubmit the Strategy, as many times as required, 
until approval is granted. 
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