419 
‘‘(B) the economic impact of any proposed en-
ergy conservation standard; 
‘‘(C) the manufacturers’ annual shipments of 
each class or category of covered products, orga-
nized, to the maximum extent practicable, by— 
‘‘(i) energy efficiency, energy use, and, if 
applicable, water use; 
‘‘(ii) the presence or absence of such effi-
ciency related or energy consuming operational 
characteristics or components as the Secretary 
determines are relevant for the purposes of car-
rying out this part; and 
‘‘(iii) the State or regional location of sale, 
for covered products for which the Secretary 
may adopt regional standards; and 
‘‘(D) such other categories of information as 
the Secretary deems relevant to carry out this part, 
including such other information as may be nec-
essary to establish and revise test procedures, label-
ing rules, and energy conservation standards and to 
insure compliance with the requirements of this 
part. 
‘‘(2) In adopting regulations under this subsection, 
the Secretary shall consider existing public sources of in-
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formation, including nationally recognized certification 
programs of trade associations. 
‘‘(3) The Secretary shall exercise authority under this 
section in a manner designed to minimize unnecessary 
burdens on manufacturers of covered products. 
‘‘(4) To the extent that they do not conflict with the 
duties of the Secretary in carrying out this part, the provi-
sions of section 11(d) of the Energy Supply and Environ-
mental Coordination Act of 1974 (15 U.S.C. 796(d)) shall 
apply with respect to information obtained under this sub-
section to the same extent and in the same manner as 
they apply with respect to other energy information ob-
tained under such section.’’. 
(f) STATE WAIVER.—Section 327(c) of the Energy 
Policy and Conservation Act (42 U.S.C. 6297(c)), as 
amended by section 161(a)(19) of this Act, is further 
amended by adding at the end the following: 
‘‘(12) is a regulation concerning standards for 
hot food holding cabinets, drinking water dispensers 
and portable electric spas adopted by the California 
Energy Commission on or before January 1, 2013.’’. 
(g) WAIVER OF FEDERAL PREEMPTION.—Paragraph 
(1) of section 327(d) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6297(d)) is amended as follows: 
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(1) In subparagraph (A) by striking ‘‘State reg-
ulation’’ each place it appears and inserting ‘‘State 
statute or regulation’’. 
(2) In subparagraph (B) by adding at the end 
the following new sentence: ‘‘In making such a find-
ing, the Secretary may not reject a petition for fail-
ure of the petitioning State or river basin commis-
sion to produce confidential information maintained 
by any manufacturer or distributor, or group or as-
sociation of manufacturers or distributors, and 
which the petitioning party does not have the legal 
right to obtain.’’. 
(3) In clause (ii) of subparagraph (C) by strik-
ing ‘‘costs’’ each place it appears and inserting ‘‘es-
timated costs’’. 
(4) In subparagraph (C) by striking ‘‘within the 
context of the State’s energy plan and forecast, 
and,’’. 
(h) INCLUSION OF CARBON OUTPUT ON APPLIANCE 
‘‘ENERGYGUIDE’’ LABELS.—(1) Section 324(a)(2) of the 
Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding the following at the 
end: 
‘‘(I)(i) Not later than 90 days after the date of enact-
ment of this subparagraph, the Commission shall initiate 
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a rulemaking to implement the additional labeling require-
ments specified in subsection (c)(1)(C) of this section with 
an effective date for the revised labeling requirement not 
later than 12 months from issuance of the final rule. 
‘‘(ii) Not later than 24 months after the date of en-
actment of this subparagraph, the Commission shall com-
plete the rulemaking initiated under clause (i). 
‘‘(iii) Not later than 90 days after issuance of the 
final rule as provided in this subparagraph, the Secretary 
shall issue calculation methods required to effectuate the 
labeling requirements specified in subsection (c)(1)(C) of 
this section.’’. 
(2) Section 324(c)(1) of the Energy Policy and Con-
servation Act (42 U.S.C. 6294(c)(1)) is amended— 
(A) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(B) by striking the period at the end of sub-
paragraph (B) and inserting a semicolon; and 
(C) by adding at the end the following new sub-
paragraphs: 
‘‘(C) for products or groups of products pro-
viding a comparable function (including the group of 
products comprising the heating function of heat 
pumps and furnaces) among covered products listed 
in paragraphs (3), (4), (5), (8), (9), (10), and (11) 
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of section 322(a) of this part, and others designated 
by the Secretary, the estimated total annual atmos-
pheric carbon dioxide emissions (or their equivalent 
in other greenhouse gases) associated with, or 
caused by, the product, calculated utilizing— 
‘‘(i) national average energy use for the 
product including energy consumed at the point 
of end use based on test procedures developed 
under section 323 of this part; 
‘‘(ii) national average energy consumed or 
lost in the production, generation, transpor-
tation, storage, and distribution of energy to 
the point of end use; and 
‘‘(iii) any direct emissions of greenhouse 
gases from the product during normal use; 
‘‘(D) in determining the national average 
energy consumption and total annual atmos-
pheric carbon dioxide emissions, the Secretary 
shall utilize Federal Government sources, in-
cluding the Energy Information Administration 
Annual Energy Review, the Environmental Pro-
tection Agency eGRID data base, Environ-
mental Protection Agency AP–42 Emission 
Factors as amended, and other sources deter-
mined to be appropriate by the Secretary; and 
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‘‘(E) information presenting, for each 
product (or group of products providing the 
comparable function) identified in section 
(c)(1)(C) of this section, the estimated annual 
carbon dioxide emissions calculated within the 
range of emissions calculated for all models of 
the product or group according to its function, 
including those models consuming fuels and 
those models not consuming fuels.’’. 
(i) PERMITTING STATES TO SEEK INJUNCTIVE EN-
FORCEMENT.—(1) Section 334 of the Energy Policy and 
Conservation Act (42 U.S.C. 6304) is amended to read 
as follows: 
‘‘SEC. 334. JURISDICTION AND VENUE. 
‘‘(a) JURISDICTION.—The United States district 
courts shall have jurisdiction to restrain— 
‘‘(1) any violation of section 332; and 
‘‘(2) any person from distributing in commerce 
any covered product which does not comply with an 
applicable rule under section 324 or 325. 
‘‘(b) AUTHORITY.—Any action referred to in sub-
section (a) shall be brought by the Commission or by the 
attorney general of a State in the name of the State, ex-
cept that— 
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‘‘(1) any such action to restrain any violation of 
section 332(a)(3) which relates to requirements pre-
scribed by the Secretary or any violation of section 
332(a)(4) which relates to request of the Secretary 
under section 326(b)(2) shall be brought by the Sec-
retary; and 
‘‘(2) any violation of section 332(a)(5) or 
332(a)(7) shall be brought by the Secretary or by 
the attorney general of a State in the name of the 
State. 
‘‘(c) VENUE AND SERVICE OF PROCESS.—Any such 
action may be brought in the United States district court 
for a district wherein any act, omission, or transaction 
constituting the violation occurred, or in such court of the 
district wherein the defendant is found or transacts busi-
ness. In any action under this section, process may be 
served on a defendant in any other district in which the 
defendant resides or may be found.’’. 
(2) The item relating to section 334 in the table of 
contents for such Act is amended to read as follows: 
‘‘Sec. 334. Jurisdiction and venue.’’. 
(j) TREATMENT OF APPLIANCES WITHIN BUILDING 
CODES.—(1) Section 327(f)(3) of the Energy Policy and 
Conservation Act (42 U.S.C. 6297(f)(3)) is amended by 
striking subparagraphs (B) through (G) and inserting the 
following: 
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426 
‘‘(B) The code meets at least one of the fol-
lowing requirements: 
‘‘(i) The code does not require that the 
covered product have an energy efficiency ex-
ceeding— 
‘‘(I) the applicable energy conserva-
tion standard established in or prescribed 
under section 325; 
‘‘(II) the level required by a regula-
tion of that State for which the Secretary 
has issued a rule granting a waiver under 
subsection (d) of this section; or 
‘‘(III) the required level established in 
the International Energy Conservation 
Code or in a standard of the American So-
ciety of Heating, Refrigerating and Air- 
Conditioning Engineers, or by the Sec-
retary pursuant to section 304 of the En-
ergy Conservation and Production Act. 
‘‘(ii) If the code uses one or more baseline 
building designs against which all submitted 
building designs are to be evaluated and such 
baseline building designs contain a covered 
product subject to an energy conservation 
standard established in or prescribed under sec-
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427 
tion 325, the baseline building designs are 
based on an efficiency level for such covered 
product which meets but does not exceed one of 
the levels specified in clause (i). 
‘‘(iii) If the code sets forth one or more op-
tional combinations of items which meet the en-
ergy consumption or conservation objective, in 
at least one combination that the State has 
found to be reasonably achievable using com-
mercially available technologies the efficiency of 
the covered product meets but does not exceed 
one of the levels specified in clause (i). 
‘‘(C) The credit to the energy consumption or 
conservation objective allowed by the code for install-
ing covered products having energy efficiencies ex-
ceeding one of the levels specified in subparagraph 
(B)(i) is on a one-for-one equivalent energy use or 
equivalent energy cost basis, taking into account the 
typical lifetime of the product. 
‘‘(D) The energy consumption or conservation 
objective is specified in terms of an estimated total 
consumption of energy (which may be calculated 
from energy loss- or gain-based codes) utilizing an 
equivalent amount of energy (which may be specified 
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428 
in units of energy or its equivalent cost) and equiva-
lent lifetimes. 
‘‘(E) The estimated energy use of any covered 
product permitted or required in the code, or used 
in calculating the objective, is determined using the 
applicable test procedures prescribed under section 
323, except that the State may permit the estimated 
energy use calculation to be adjusted to reflect the 
conditions of the areas where the code is being ap-
plied if such adjustment is based on the use of the 
applicable test procedures prescribed under section 
323 or other technically accurate documented proce-
dure.’’. 
(2) Section 327(f)(4)(B) of the Energy Policy 
and Conservation Act (42 U.S.C. 6297(f)(4)(B)) is 
amended to read as follows: 
‘‘(B) If a building code requires the installation of 
covered products with efficiencies exceeding the levels and 
requirements specified in paragraph (3)(B), such require-
ment of the building code shall not be applicable unless 
the Secretary has granted a waiver for such requirement 
under subsection (d) of this section.’’. 
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429 
SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PRO-
GRAM. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Energy, 
in consultation with the Administrator, shall establish a 
program to be known as the ‘‘Best-in-Class Appliances 
Deployment Program’’ to— 
(1) provide bonus payments to retailers or dis-
tributors under subsection (c) for sales of best-in- 
class high-efficiency household appliance models, 
high-efficiency installed building equipment, and 
high-efficiency consumer electronics, with the goal of 
reducing life-cycle costs for consumers, encouraging 
innovation, and maximizing energy savings and pub-
lic benefit; 
(2) provide bounties under subsection (d) to re-
tailers and manufacturers for the replacement, re-
tirement, and recycling of old, inefficient, and envi-
ronmentally harmful products; and 
(3) provide premium awards under subsection 
(e) to manufacturers for developing and producing 
new Superefficient Best-in-Class Products. 
(b) DESIGNATION
OF
BEST-IN-CLASS
PRODUCT 
MODELS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall designate product models of appliances, equip-
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430 
ment, or electronics as Best-in-Class Product mod-
els. The Secretary shall publicly announce the Best- 
in-Class Product models designated under this sub-
section. The Secretary shall define product classes 
broadly and, except as provided in paragraph (2), 
shall designate as Best-in-Class Product models no 
more than the most efficient 10 percent of the com-
mercially available product models in a class that 
demonstrate, as a group, a distinctly greater energy 
efficiency than the average energy efficiency of that 
class of appliances, equipment, or electronics. In des-
ignating models, the Secretary shall— 
(A) identify commercially available models 
in the relevant class of products; 
(B) identify the subgroup of those models 
that share the distinctly higher energy-effi-
ciency characteristics that warrant designation 
as best-in-class; and 
(C) add other models in that class to the 
list of Best-in-Class Product models as they 
demonstrate their ability to meet the higher-ef-
ficiency characteristics on which the designation 
was made. 
(2) PERCENTAGE
EXCEPTION.—If there are 
fewer than 10 product models in a class of products, 
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the Secretary may designate one or more of such 
models as Best-in-Class Products. 
(3) REVIEW OF BEST-IN-CLASS STANDARDS.— 
The Secretary shall review annually the product-spe-
cific criteria for designating, and the product models 
that qualify as, Best-in-Class Products and, after 
notice and a 30-day comment period, make upwards 
adjustments in the efficiency criteria as necessary to 
maintain an appropriate ratio of such product mod-
els to the total number of product models in the 
product class. 
(4) SMART
GRID
ENERGY
EFFICIENCY
SAV-
INGS.—The Secretary shall include energy efficiency 
savings achieved by a commercially available product 
having smart grid capability in determining the effi-
ciency level of a product for purposes of a Best-In- 
Class Product designation pursuant to this sub-
section. In measuring energy efficiency savings 
achieved by smart grid capability, the Secretary 
shall use a metric that— 
(A) is based on the time-differentiated 
value and amount of energy consumption; 
(B) accounts for the capability of the prod-
uct to respond to a smart grid in which the 
physical capability of the product to save or 
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delay energy because of a smart grid feature is 
weighted by the likelihood that the feature will 
be used; 
(C) is based on the value of a unit of elec-
tric or gas consumption as a function of time 
of day and season; and 
(D) includes a test method by which the 
manufacturer shall determine the energy effi-
ciency of smart grid capable products. 
(c) BONUSES FOR SALES OF BEST-IN-CLASS PROD-
UCTS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall make bonus payments to retailers or, as pro-
vided in paragraph (5)(B), distributors for the sale 
of Best-in-Class Products. 
(2) BONUS PROGRAM.—The Secretary shall— 
(A) publicly announce the availability and 
amount of the bonus to be paid for each sale 
of a Best-in-Class Product of a model des-
ignated under subsection (b); and 
(B) make bonus payments in at least that 
amount for each Best-in-Class Product of that 
model sold during the 3-year period beginning 
on the date the model is designated under sub-
section (b). 
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(3) UPGRADE OF BEST-IN-CLASS PRODUCT ELI-
GIBILITY.—In conducting a review under subsection 
(b)(3), the Secretary shall— 
(A) consider designating as a Best-in-Class 
Product model a Superefficient Best-in-Class 
Product model that has been designated pursu-
ant to subsection (e); 
(B) announce any change in the bonus 
payment as necessary to increase the market 
share of Best-in-Class Product models; 
(C) list models that will be eligible for bo-
nuses in the new amount; and 
(D) continue paying bonus payments at 
the original level, for the sale of any models 
that previously qualified as Best-in-Class Prod-
ucts but do not qualify at the new level, for the 
remainder of the 3-year period announced with 
the original designation. 
(4) SIZE OF INDIVIDUAL BONUS PAYMENTS.— 
(A) The size of each bonus payment under this sub-
section shall be the product of— 
(i) an amount determined by the Sec-
retary; and 
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434 
(ii) the difference in energy consumption 
between the Best-in-Class Product and the av-
erage product in the product class. 
(B) The Secretary shall determine the amount 
under subparagraph (A)(i) for each product type, in 
consultation with State and utility efficiency pro-
gram administrators as well as the Administrator, 
based on estimates of the amount of bonus payment 
that would provide significant incentive to increase 
the market share of Best-in-Class Products. 
(5) ELIGIBLE
BONUS
RECIPIENT.—(A) The 
Secretary shall ensure that not more than 1 bonus 
payment is provided under this subsection for each 
Best-in-Class Product. 
(B) The Secretary may make distributors eligi-
ble to receive bonus payments under this subsection 
for sales that are not to the final end-user, to the 
extent that the Secretary determines that for a par-
ticular product category distributors are well situ-
ated to increase sales of Best-in-Class Products. 
(d) BOUNTIES
FOR REPLACEMENT, RETIREMENT, 
AND RECYCLING OF EXISTING LOW-EFFICIENCY PROD-
UCTS.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall make bounty payments to— 
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(A) retailers for the replacement, retire-
ment, and recycling of older operating low-effi-
ciency products that might otherwise continue 
in operation; and 
(B) manufacturers of Superefficient Best- 
in-Class Products for the retirement and recy-
cling of older operating low-efficiency products 
that perform the same function and which 
might otherwise continue in operation. 
(2) BOUNTIES.—Bounties shall be payable— 
(A) to a retailer upon documentation that 
the sale of a Best-in-Class Product was accom-
panied by the replacement, retirement, and re-
cycling of— 
(i) an inefficient but still-functioning 
product; or 
(ii) a nonfunctioning product con-
taining a refrigerant, by the consumer to 
whom the Best-in-Class Product was sold; 
and 
(B) to a manufacturer upon documentation 
of the retirement and recycling of— 
(i) an inefficient but still-functioning 
product from a consumer to whom a 
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Superefficient Best-in-Class Product was 
delivered; or 
(ii) a nonfunctioning product con-
taining a refrigerant from a consumer to 
whom a Superefficient Best-in-Class Prod-
uct was delivered. 
(3) AMOUNT.— 
(A) FUNCTIONING PRODUCTS.—The boun-
ty payment payable under this subsection for a 
product described in paragraphs (2)(A)(i) and 
(2)(B)(i) shall be based on the difference be-
tween the estimated energy use of the product 
replaced and the energy use of an average new 
product in the product class, over the estimated 
remaining lifetime of the product that was re-
placed. 
(B) NONFUNCTIONING
PRODUCTS
CON-
TAINING REFRIGERANTS.—The bounty payment 
payable under this subsection for a product de-
scribed in paragraphs (2)(A)(ii) and (2)(B)(ii) 
shall be in the amount that the Secretary of 
Energy, in consultation with the Administrator, 
determines is sufficient to promote the recycling 
of such products, up to the amount of bounty 
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for a comparable product described in para-
graphs (2)(A) and (2)(B). 
(4) RETIREMENT.—The Secretary shall ensure 
that no product for which a bounty is paid under 
this subsection is returned to active service, but that 
it is instead destroyed, and recycled to the extent 
feasible. 
(5) RECYCLING APPLIANCES CONTAINING RE-
FRIGERANTS.—Exclusively for the purpose of imple-
menting the bounty payment program for products 
containing a refrigerant under this section, the Ad-
ministrator shall establish standards for environ-
mentally responsible methods of recycling and dis-
posal of refrigerant-containing appliances that, at a 
minimum, meet the requirements set by the Respon-
sible Appliance Disposal (RAD) Program for refrig-
erant disposal. The Secretary shall ensure that such 
standards are met before a bounty payment is made 
under this subsection for a product containing a re-
frigerant. Nothing in this section shall be interpreted 
to alter the requirements of section 608 of the Clean 
Air Act or to relieve any person from complying with 
those requirements. 
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438 
(e) PREMIUM AWARDS
FOR DEVELOPMENT
AND 
PRODUCTION OF SUPEREFFICIENT BEST-IN-CLASS PROD-
UCTS.— 
(1) IN GENERAL.—(A) The Secretary of Energy 
shall provide premium awards to manufacturers for 
the development and production of Superefficient 
Best-in-Class Products. The Secretary shall set and 
periodically revise standards for eligibility of prod-
ucts for designation as a Superefficient Best-in- 
Class Product. 
(B) The Secretary may establish a standard for 
a Superefficient Best-in-Class Product even if no 
product meeting that standard exists, if the Sec-
retary has reasonable grounds to conclude that a 
mass-producible product could be made to meet that 
standard. 
(C) The Secretary may also establish a Super-
efficient Best-in-Class Product standard that is met 
by one or more existing Best-in-Class Product mod-
els, if those product models have distinct energy effi-
ciency attributes and performance characteristics 
that make them significantly better than other prod-
uct models qualifying as best-in-class. The Secretary 
may not designate as Superefficient Best-in-Class 
Products under this subparagraph models that rep-
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resent more than 10 percent of the currently quali-
fying Best-in-Class Product models. This subpara-
graph shall not apply to products designated pursu-
ant to paragraph (4)(A). 
(D) In making its finding on the efficiency level 
a product can achieve for purposes of a Supereffi-
cient Best-In-Class Product designation pursuant to 
this paragraph, the Secretary shall include energy 
efficiency savings that would be achieved by a prod-
uct as a result of smart grid capability when a prod-
uct having such capability can be produced and sold 
commercially to mass market consumers. In meas-
uring energy efficiency savings achieved by smart 
grid capability, the Secretary shall use a metric 
that– 
(i) is based on the time-differentiated value 
and amount of energy consumption; 
(ii) accounts for the capability of the prod-
uct to respond to a smart grid in which the 
physical capability of the product to save or 
delay energy because of a smart grid feature is 
weighted by the likelihood that the feature will 
be used; 
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(iii) is based on the value of a unit of elec-
tric or gas consumption as a function of time 
of day and season; and 
(iv) includes a test method by which the 
manufacturer shall determine the energy effi-
ciency of smart grid capable products. 
(2) PREMIUM
AWARDS.—(A) The premium 
award payment provided to a manufacturer under 
this subsection shall be in addition to any bonus 
payments made under subsection (c). 
(B) The amount of the premium award paid 
per unit of Superefficient Best-in-Class Products 
sold to retailers or distributors shall, except as pro-
vided by subparagraph (F), be the product of— 
(i) an amount determined by the Sec-
retary; and 
(ii) the difference in energy consumption 
between the Superefficient Best-in-Class Prod-
uct and the average product in the product 
class. 
(C) The Secretary shall determine the amount 
under subparagraph (B)(i) for each product type, in 
consultation with State and utility efficiency pro-
gram administrators as well as the Administrator, 
based on consideration of the present value to the 
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Nation of the energy (and water or other resources 
or inputs) saved over the useful life of the product. 
The Secretary may also take into consideration the 
methods used to increase sales of qualifying prod-
ucts in determining such amount. 
(D) The Secretary may adjust the value de-
scribed in subparagraph (C) upward or downward as 
appropriate, including based on the effect of the pre-
mium awards on the sales of products in different 
classes that may be affected by the program under 
this subsection. 
(E) Premium award payments shall be applied 
to sales of any Superefficient Best-in-Class Product 
for the first 3 years after designation as a Supereffi-
cient Best-in-Class Product. 
(F) For years 2011 through 2013, the Sec-
retary shall make bonus payments to manufacturers 
of the products designated in paragraph (4)(A) for 
each product produced in the following amounts: 
(i) $75 for each dishwasher. 
(ii) $250 for each clothes washer. 
(iii) $200 for each refrigerator or refrig-
erator-freezer. 
(iv) $250 for each clothes dryer. 
(v) $200 for each cooking product. 
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(vi) $300 for each water heater. 
(3) COORDINATION OF INCENTIVES.—No prod-
uct for which Federal tax credit is received under 
section 45M of the Internal Revenue Code of 1986 
shall be eligible to receive premium award payments 
pursuant to this subsection. 
(4) DESIGNATIONS.— 
(A) 
INITIAL
DESIGNATIONS.—Notwith-
standing any other provisions of this section, 
the products the Secretary shall designate as a 
Superefficient Best-In-Class Product include, 
but are not limited to, the following products 
manufactured in 2011 through 2013: 
(i) A dishwasher, clothes washer, re-
frigerator, 
or 
refrigerator-freezer 
that 
meets the highest efficiency performance 
standards in its product category as pro-
vided in Section 305(b) of the Emergency 
Economic Stabilization Act of 2008 and 
has the smart grid capability specified in 
paragraph (5). 
(ii) A water heater that meets an effi-
ciency standard that is the same or equiva-
lent to the standard provided in Section 
1333 of the Energy Policy Act of 2005 
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and has the smart grid capability specified 
in paragraph (5). 
(iii) A clothes dryer or cooking prod-
uct that the Secretary determines meets 
the standards specified in subsection (j)(3), 
which the Secretary shall promulgate no 
later than one year after the date of enact-
ment, and has the smart grid capability 
specified in paragraph (5). 
(B) EXTENSION
OF
INITIAL
DESIGNA-
TIONS.— 
(i) GENERAL.—The Secretary shall in 
2013 extend the Superefficient Best-In- 
Class Product designation of each product 
specified in subparagraph (A)(i) through 
(iii) through 2017, provided that for each 
product designation extended— 
(I) the extension will result in 
significant energy efficiency savings; 
(II) the product meets the Super-
efficient Best-In-Class Product cri-
teria specified in paragraph (1); 
(III) the eligibility standards of 
the product include the smart grid ca-
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pability specified in paragraph (5); 
and 
(IV) the Secretary makes appro-
priate revisions to the eligibility stand-
ards of the product as provided by 
paragraph (1). 
(ii) AWARDS.—If a Superefficient 
Best-In-Class Product designation for a 
product is extended pursuant to this sub-
paragraph, the premium award for the 
product shall be determined in accordance 
with paragraph (2). 
(5) SMART GRID CAPABILITY.— 
(A) Until the Secretary promulgates cri-
teria under subparagraph (B), the term ‘‘smart 
grid capability’’ means capability of receiving 
and interpreting time-of-use pricing and peak- 
load-shed signals from a utility and— 
(i) in the case of a cooking product, 
reducing a minimum of 20 percent during 
peak demand as measured by the tested 
average wattage over the course of a typ-
ical operating cycle of the product; or 
(ii) in the case of a clothes washer, a 
refrigerator, a dishwasher, a dryer and a 
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water heater, reducing a minimum of 50 
percent during peak demand as measured 
by the tested average wattage over the 
course of a typical operating cycle of the 
product, provided that the typical oper-
ating cycle of a refrigerator and a water 
heater shall be a 24-hour period. 
(B) After completion of the analysis re-
quired under section 142(b) of this Act, the 
Secretary shall expeditiously promulgate, after 
notice and a 30-day public comment period, cri-
teria for what constitutes ‘‘smart grid capa-
bility.’’ 
(f) REPORTING.—The Secretary of Energy shall re-
quire, as a condition of receiving a bonus, bounty, or pre-
mium award under this section, that a report containing 
the following documentation be provided: 
(1) For retailers and distributors, the number 
of units sold within each product type, and model- 
specific wholesale purchase prices and retail sale 
prices, on a monthly basis. 
(2) For manufacturers, model-specific energy 
efficiency and consumption data. 
(3) For manufacturers, on an immediate basis, 
information concerning any product design or func-
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tion changes that affect the energy consumption of 
the unit. 
(4) The methods used to increase the sales of 
qualifying products. 
(g) MONITORING AND VERIFICATION PROTOCOLS.— 
The Secretary of Energy shall establish monitoring and 
verification protocols for energy consumption tests for 
each product model and for sales of energy-efficient mod-
els. The Secretary shall estimate actual savings of energy 
from the use of Smart Grid capability in appliances for 
which premium award payments are made pursuant to 
subsection (e) as a function of utility and consumer readi-
ness to utilize such capability. 
(h) DISCLOSURE.—The Secretary of Energy may re-
quire that manufacturers, retailers and distributors dis-
close publicly and to consumers their participation in the 
program under this section. 
(i) COST-EFFECTIVENESS REQUIREMENT.— 
(1) REQUIREMENT.—The Secretary of Energy 
shall make cost-effectiveness a top priority in design-
ing the program under, and administering, this sec-
tion, except that the cost-effectiveness of providing 
premium awards to manufacturers under subsection 
(e), in aggregate, may be lower by this measure than 
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that of the bonuses and bounties to retailers and 
distributors under subsections (c) and (d). 
(2) DEFINITIONS.—In this subsection: 
(A) 
COST-EFFECTIVENESS.—The 
term 
‘‘cost-effectiveness’’ means a measure of aggre-
gate savings in the cost of energy over the life-
time of a product in relation to the cost to the 
Secretary of the bonuses, bounties, and pre-
mium awards provided under this section for a 
product. 
(B) SAVINGS.—The term ‘‘savings’’ means 
the cumulative megawatt-hours of electricity or 
million British thermal units of other fuels 
saved by a product during the projected useful 
life of the product, in comparison to projected 
energy consumption of the average product in 
the same class, taking into consideration the 
impact of any documented measures to replace, 
retire, and recycle low-efficiency products at the 
time of purchase of highly-efficient substitutes. 
(j) DEFINITIONS.—In this section— 
(1) the term ‘‘distributor’’ mean an individual, 
organization, or company that sells products in mul-
tiple lots and not directly to end-users; 
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(2) the term ‘‘retailer’’ means an individual, or-
ganization, or company that sells products directly 
to end-users; 
(3) the term ‘‘manufacturer’’ means an indi-
vidual, organization, or company that transforms 
raw materials into mass-producible finished goods; 
and 
(4) the term ‘‘Superefficient Best-in-Class 
Product’’ means a product that— 
(A) can be mass produced; and 
(B) achieves the highest level of efficiency 
that the Secretary of Energy finds can, given 
the current state of technology, be produced 
and sold commercially to mass-market con-
sumers. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $600,000,000 for each 
of the fiscal years 2011 through 2013 to the Secretary 
of Energy for purposes of this section, and such sums as 
may be necessary for subsequent fiscal years. Of funds 
appropriated, not more than 10 percent for any fiscal year 
may be expended on program administration, and not less 
than 40 percent of any funds appropriated during fiscal 
years 2011 through 2013 shall be for purposes of sub-
section (e). 
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449 
SEC. 215. WATERSENSE. 
(a) IN GENERAL.—There is established within the 
Environmental Protection Agency a WaterSense program 
to identify and promote water efficient products, buildings 
and landscapes, and services in order— 
(1) to reduce water use; 
(2) to reduce the strain on water, wastewater, 
and stormwater infrastructure; 
(3) to conserve energy used to pump, heat, 
transport, and treat water; and 
(4) to preserve water resources for future gen-
erations, 
through voluntary labeling of, or other forms of commu-
nications about, products, buildings and landscapes, and 
services that meet the highest water efficiency and per-
formance standards. 
(b) DUTIES.—The Administrator shall— 
(1) promote WaterSense labeled products, 
buildings and landscapes, and services in the market 
place as the preferred technologies and services 
for— 
(A) reducing water use; and 
(B) ensuring product and service perform-
ance; 
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(2) work to enhance public awareness of the 
WaterSense label through public outreach, edu-
cation, and other means; 
(3) establish and maintain performance stand-
ards so that products, buildings and landscapes, and 
services labeled with the WaterSense label perform 
as well or better than their less efficient counter-
parts; 
(4) publicize the need for proper installation 
and maintenance of WaterSense products by a li-
censed, and where certification guidelines exist, 
WaterSense-certified professional to ensure optimal 
performance; 
(5) preserve the integrity of the WaterSense 
label; 
(6) regularly review and, when appropriate, up-
date WaterSense criteria for categories of products, 
buildings and landscapes, and services, at least once 
every four years; 
(7) to the extent practical, regularly estimate 
and make available to the public the production and 
relative market shares of WaterSense labeled prod-
ucts, buildings and landscapes, and services, at least 
annually; 
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(8) to the extent practical, regularly estimate 
and make available to the public the water and en-
ergy savings attributable to the use of WaterSense 
labeled products, buildings and landscapes, and serv-
ices, at least annually; 
(9) solicit comments from interested parties and 
the public prior to establishing or revising a 
WaterSense category, specification, installation cri-
terion, or other criterion (or prior to effective dates 
for any such category, specification, installation cri-
terion, or other criterion); 
(10) provide reasonable notice to interested par-
ties and the public of any changes (including effec-
tive dates), on the adoption of a new or revised cat-
egory, specification, installation criterion, or other 
criterion, along with— 
(A) an explanation of changes; and 
(B) as appropriate, responses to comments 
submitted by interested parties; 
(11) provide appropriate lead time (as deter-
mined by the Administrator) prior to the applicable 
effective date for a new or significant revision to a 
category, specification, installation criterion, or other 
criterion, taking into account the timing require-
ments of the manufacturing, marketing, training, 
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and distribution process for the specific product, 
building and landscape, or service category ad-
dressed; and 
(12) identify and, where appropriate, implement 
other voluntary approaches in commercial, institu-
tional, residential, municipal, and industrial sectors 
to encourage reuse and recycling technologies, im-
prove water efficiency, or lower water use while 
meeting, where applicable, the performance stand-
ards established under paragraph (3). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $7,500,000 for fiscal 
year 2010, $10,000,000 for fiscal year 2011, $20,000,000 
for fiscal year 2012, and $50,000,000 for fiscal year 2013 
and each year thereafter, adjusted for inflation, to carry 
out this section. 
SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT 
PRODUCTS. 
(a) DEFINITIONS.—In this section: 
(1) AGENCY.—The term ‘‘agency’’ has the 
meaning given that term in section 7902(a) of title 
5, United States Code. 
(2) WATERSENSE PRODUCT OR SERVICE.—The 
term ‘‘WaterSense product or service’’ means a 
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product or service that is rated for water efficiency 
under the WaterSense program. 
(3) 
WATERSENSE
PROGRAM.—The 
term 
‘‘WaterSense program’’ means the program estab-
lished by section 215 of this Act. 
(4) FEMP DESIGNATED PRODUCT.—The term 
‘‘FEMP designated product’’ means a product that 
is designated under the Federal Energy Manage-
ment Program of the Department of Energy as 
being among the highest 25 percent of equivalent 
products for efficiency. 
(5) PRODUCT AND SERVICE.—The terms ‘‘prod-
uct’’ and ‘‘service’’ do not include any water con-
suming product or service designed or procured for 
combat or combat-related missions. The terms also 
exclude products or services already covered by the 
Federal procurement regulations established under 
section 553 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259b). 
(b) PROCUREMENT OF WATER EFFICIENT PROD-
UCTS.— 
(1) REQUIREMENT.—To meet the requirements 
of an agency for a water consuming product or serv-
ice, the head of the agency shall, except as provided 
in paragraph (2), procure— 
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(A) a WaterSense product or service; or 
(B) a FEMP designated product. 
A WaterSense plumbing product should preferably, 
when possible, be installed by a licensed and, when 
WaterSense 
certification 
guidelines 
exist, 
WaterSense-certified plumber or mechanical con-
tractor, and a WaterSense irrigation system should 
preferably, when possible, be installed, maintained, 
and audited by a WaterSense-certified irrigation 
professional to ensure optimal performance. 
(2) EXCEPTIONS.—The head of an agency is 
not required to procure a WaterSense product or 
service or FEMP designated product under para-
graph (1) if the head of the agency finds in writing 
that— 
(A) a WaterSense product or service or 
FEMP designated product is not cost-effective 
over the life of the product, taking energy and 
water cost savings into account; or 
(B) no WaterSense product or service or 
FEMP designated product is reasonably avail-
able that meets the functional requirements of 
the agency. 
(3) PROCUREMENT PLANNING.—The head of an 
agency shall incorporate into the specifications for 
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455 
all procurements involving water consuming products 
and systems, including guide specifications, project 
specifications, and construction, renovation, and 
services contracts that include provision of water 
consuming products and systems, and into the fac-
tors for the evaluation of offers received for the pro-
curement, criteria used for rating WaterSense prod-
ucts and services and FEMP designated products. 
The head of an agency shall consider, to the max-
imum extent practicable, additional measures for re-
ducing agency water consumption, including water 
reuse technologies, leak detection and repair, and 
use of waterless products that perform similar func-
tions to existing water-consuming products. 
(c) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of Energy, 
working in coordination with the Administrator, shall 
issue guidelines to carry out this section. 
SEC. 217. WATER EFFICIENT PRODUCT REBATE PROGRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE
STATE.—The term ‘‘eligible 
State’’ means a State that meets the requirements 
of subsection (b). 
(2) RESIDENTIAL WATER EFFICIENT PRODUCT 
OR SERVICE.—The term ‘‘residential water efficient 
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product or service’’ means a product or service for 
a residence or its landscape that is rated for water 
efficiency and performance— 
(A) by the WaterSense program, where a 
WaterSense specification does not exist; or 
(B) by a State program and approved by 
the Administrator. 
Categories of water efficient products and services 
may include faucets, irrigation technologies and 
services, point-of-use water treatment devices, reuse 
and recycling technologies, toilets, and showerheads. 
(3) STATE PROGRAM.—The term ‘‘State pro-
gram’’ means a State program for administering re-
bates or vouchers for consumer purchase of water ef-
ficient products and services as described in sub-
section (b)(1). 
(4) 
WATERSENSE
PROGRAM.—The 
term 
‘‘WaterSense program’’ means the program estab-
lished by section 215 of this Act. 
(b) ELIGIBLE STATES.—A State shall be eligible to 
receive an allocation under subsection (c) if the State— 
(1) establishes (or has established) a State pro-
gram to provide rebates or vouchers to residential 
consumers for the purchase of residential water effi-
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cient products or services to replace used products 
of the same type; 
(2) submits an application for the allocation at 
such time, in such form, and containing such infor-
mation as the Administrator may require; and 
(3) provides assurances satisfactory to the Ad-
ministrator that the State will use the allocation to 
supplement, but not supplant, funds made available 
to carry out the State program. 
(c) AMOUNT OF ALLOCATIONS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
for each fiscal year, the Administrator shall allocate 
to each eligible State to carry out subsection (d) an 
amount equal to the product obtained by multiplying 
the amount made available under subsection (g) for 
the fiscal year by the ratio that the population of the 
State in the most recent calendar year for which 
data are available bears to the total population of all 
eligible States in that calendar year. 
(2) MINIMUM ALLOCATIONS.—For each fiscal 
year, the amounts allocated under this subsection 
shall be adjusted proportionately so that no eligible 
State is allocated a sum that is less than an amount 
determined by the Administrator. 
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(d) USE OF ALLOCATED FUNDS.—Funds allocated to 
a State under subsection (c) may be used to pay up to 
50 percent of the cost of establishing and carrying out 
a State program. 
(e) FIXTURE RECYCLING.—States are encouraged to 
promote or implement fixture recycling programs to man-
age the disposal of older fixtures replaced due to the re-
bate program under this section. 
(f) ISSUANCE OF REBATES.—Rebates or vouchers 
may be provided to residential consumers that meet the 
requirements of the State program. The State may issue 
all rebates or vouchers directly to residential consumers 
or, with approval of the Administrator, delegate some or 
all rebate and voucher administration to other organiza-
tions including, but not limited to, local governments, mu-
nicipal water authorities, and water utilities. The amount 
of a rebate or voucher shall be determined by the State, 
taking into consideration— 
(1) the amount of the allocation to the State 
under subsection (c); 
(2) the amount of any Federal or State tax in-
centive available for the purchase of the residential 
water efficient product or service; 
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(3) the amount necessary to change consumer 
behavior to purchase water efficient products and 
services; and 
(4) the consumer expenditures for onsite prepa-
ration, assembly, and original installation of the 
product. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section $50,000,000 for each of the fiscal 
years 2010 and 2011, $75,000,000 for fiscal year 2012, 
$100,000,000 for fiscal year 2013, and $150,000,000 for 
fiscal year 2014 and each year thereafter, adjusted for in-
flation. 
SEC. 218. CERTIFIED STOVES PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) AGENCY.—The term ‘‘Agency’’ means the 
Environmental Protection Agency. 
(2) WOOD
STOVE
OR
PELLET
STOVE.—The 
term ‘‘wood stove or pellet stove’’ means a wood 
stove, pellet stove, or fireplace insert that uses wood 
or pellets for fuel. 
(3) CERTIFIED
STOVE.—The term ‘‘certified 
stove’’ means a wood stove or pellet stove that meets 
the standards of performance for new residential 
wood heaters under subpart AAA of part 60 of sub-
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chapter C of chapter I of title 40, Code of Federal 
Regulations (or successor regulations), as certified 
by the Administrator. Pellet stoves and fireplace in-
serts using pellets for fuel that are exempt from 
testing by the Administrator but meet the same 
standards of performance as wood stoves are consid-
ered certified for the purposes of this section. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a State, a local government, or a feder-
ally recognized Indian tribe; 
(B) Alaskan Native villages or regional or 
village corporations (as defined in, or estab-
lished under, the Alaskan Native Claims Settle-
ment Act (43 U.S.C. 1601 et seq.)); and 
(C) a nonprofit organization or institution 
that— 
(i) represents or provides pollution re-
duction or educational services relating to 
wood smoke minimization to persons, orga-
nizations, or communities; or 
(ii) has, as its principal purpose, the 
promotion of air quality or energy effi-
ciency. 
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(b) ESTABLISHMENT.—The Administrator shall es-
tablish and carry out a program to assist in the replace-
ment of wood stoves or pellet stoves that do not meet the 
standards of performance referred to in subsection (a)(4) 
by— 
(1) requiring that each wood stove or pellet 
stove sold in the United States on and after the date 
of enactment of this Act meet the standards of per-
formance referred to in subsection (a)(4); 
(2) requiring that no wood stove or pellet stove 
replaced under this program is sold or returned to 
active service, but that it is instead destroyed and 
recycled to the maximum extent feasible; 
(3) providing funds to an eligible entity to re-
place a wood stove or pellet stove that does not meet 
the standards of performance in subsection (a)(4) 
with a certified stove, including funds to pay for— 
(A) installation of a replacement certified 
stove; and 
(B) necessary replacement of or repairs to 
ventilation, flues, chimneys, or other relevant 
items necessary for safe installation of a re-
placement certified stove; 
(4) in addition to any funds that may be appro-
priated for the program under this subsection, using 
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existing Federal, State, and local programs and in-
centives, to the greatest extent practicable; 
(5) prioritizing the replacement of wood stoves 
or pellet stoves manufactured before July 1, 1990; 
and 
(6) carrying out such other activities as the Ad-
ministrator determines appropriate to facilitate the 
replacement of wood stoves or pellet stoves that do 
not meet the standards of performance referred to in 
subsection (a)(3). 
(c) REGULATIONS.—The Administrator may promul-
gate such regulations as are necessary to carry out the 
program established under subsection (b). 
(d) FUNDING.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
the program under this section $20,000,000 for the 
period of fiscal years 2010 through 2014. 
(2) DESIGNATED
USE.—Of amounts appro-
priated pursuant to this subsection— 
(A) 25 percent shall be designated for use 
to carry out the program under this section on 
lands held in trust for the benefit of a federally 
recognized Indian tribe; 
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(B) 3 percent shall be designated for use 
to carry out the program under this section in 
Alaskan Native villages or regional or village 
corporations (as defined in, or established 
under, the Alaskan Native Claims Settlement 
Act (43 U.S.C. 1601 et seq.)); and 
(C) 72 percent shall be designated for use 
to carry out the program under this section na-
tionwide. 
(3) REGULATORY PROGRAMS.— 
(A) IN GENERAL.—No grant or loan pro-
vided under this section shall be used to fund 
the costs of emissions reductions that are man-
dated under Federal, State, or local law. 
(B) MANDATED.—For purposes of sub-
paragraph (A), voluntary or elective emission 
reduction measures shall not be considered 
‘‘mandated’’, regardless of whether the reduc-
tions are included in the implementation plan of 
a State. 
(e) EPA AUTHORITY TO ACCEPT WOOD STOVE OR 
PELLET STOVE REPLACEMENT SUPPLEMENTAL ENVI-
RONMENTAL PROJECTS.— 
(1) IN GENERAL.—The Administrator may ac-
cept (notwithstanding sections 3302 and 1301 of 
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title 31, United States Code) wood stove or pellet 
stove 
replacement 
Supplemental 
Environmental 
Projects if such projects, as part of a settlement of 
any alleged violation of environmental law— 
(A) protect human health or the environ-
ment; 
(B) are related to the underlying alleged 
violation; 
(C) do not constitute activities that the de-
fendant would otherwise be legally required to 
perform; and 
(D) do not provide funds for the staff of 
the Agency or for contractors to carry out the 
Agency’s internal operations. 
(2) CERTIFICATION.—In any settlement agree-
ment regarding an alleged violation of environmental 
law in which a defendant agrees to perform a wood 
stove or pellet stove replacement Supplemental Envi-
ronmental Project, the Administrator shall require 
the defendant to include in the settlement docu-
ments a certification under penalty of law that the 
defendant would have agreed to perform a com-
parably valued, alternative project other than a wood 
stove or pellet stove replacement Supplemental Envi-
ronmental Project if the Administrator were pre-
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cluded by law from accepting a wood stove or pellet 
stove 
replacement 
Supplemental 
Environmental 
Project. A failure by the Administrator to include 
this language in such a settlement agreement shall 
not create a cause of action against the United 
States under the Clean Air Act or any other law or 
create a basis for overturning a settlement agree-
ment entered into by the United States. 
SEC. 219. ENERGY STAR STANDARDS. 
(a) ENERGY STAR.—Section 324A(c) of the Energy 
Policy and Conservation Act is amended— 
(1) in paragraph (6)(B), by striking ‘‘and’’ 
after the semicolon at the end; 
(2) in paragraph (7), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(8) not later than 18 months after the date of 
enactment of this paragraph, establish and imple-
ment a rating system for products identified as En-
ergy Star products pursuant to this section to pro-
vide consumers with the most helpful information on 
the relative energy efficiency of those products, un-
less the Administrator and the Secretary commu-
nicate to Congress that establishing such a system 
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would diminish the value of the Energy Star brand 
to consumers; 
‘‘(9)(A) review the Energy Star product criteria 
for the 10 product models in each product category 
with the greatest energy consumption at least once 
every 3 years; and 
‘‘(B) based on the review, update and publish 
the Energy Star product criteria for each such cat-
egory, as necessary; and 
‘‘(10) require periodic verification of compliance 
with the Energy Star product criteria by products 
identified as Energy Star products pursuant to this 
section, including— 
‘‘(A) purchase and testing of products 
from the market; or 
‘‘(B) other appropriate testing and compli-
ance approaches.’’. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out the amend-
ments made by this section $5,000,000 for fiscal year 
2010 and for each fiscal year thereafter. 
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Subtitle C—Transportation 
Efficiency 
SEC. 221. EMISSIONS STANDARDS. 
Title VIII of the Clean Air Act, as added by section 
331 of this Act, is amended by inserting after part A the 
following new part: 
‘‘PART B—MOBILE SOURCES 
‘‘SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR 
MOBILE SOURCES. 
‘‘(a) NEW MOTOR VEHICLES AND NEW MOTOR VE-
HICLE ENGINES.—(1) Pursuant to section 202(a)(1), by 
December 31, 2010, the Administrator shall promulgate 
standards applicable to emissions of greenhouse gases 
from new heavy-duty motor vehicles or new heavy-duty 
motor vehicle engines, excluding such motor vehicles cov-
ered by the Tier II standards (as established by the Ad-
ministrator as of the date of the enactment of this sec-
tion). The Administrator may revise these standards from 
time to time. 
‘‘(2) Regulations issued under section 202(a)(1) ap-
plicable to emissions of greenhouse gases from new heavy- 
duty motor vehicles or new heavy-duty motor vehicle en-
gines, excluding such motor vehicles covered by the Tier 
II standards (as established by the Administrator as of 
the date of the enactment of this section), shall contain 
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standards that reflect the greatest degree of emissions re-
duction achievable through the application of technology 
which the Administrator determines will be available for 
the model year to which such standards apply, giving ap-
propriate consideration to cost, energy, and safety factors 
associated with the application of such technology. Any 
such regulations shall take effect after such period as the 
Administrator finds necessary to permit the development 
and application of the requisite technology, and, at a min-
imum, shall apply for a period no less than 3 model years 
beginning no earlier than the model year commencing 4 
years after such regulations are promulgated. 
‘‘(3) Regulations issued under section 202(a)(1) ap-
plicable to emissions of greenhouse gases from new heavy- 
duty motor vehicles or new heavy-duty motor vehicle en-
gines, excluding such motor vehicles covered by the Tier 
II standards (as established by the Administrator as of 
the date of the enactment of this section), shall supersede 
and satisfy any and all of the rulemaking and compliance 
requirements of section 32902(k) of title 49, United 
States Code. 
‘‘(4) Other than as specifically set forth in paragraph 
(3) of this subsection, nothing in this section shall affect 
or otherwise increase or diminish the authority of the Sec-
retary of Transportation to adopt regulations to improve 
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the overall fuel efficiency of the commercial goods move-
ment system. 
‘‘(b) NONROAD VEHICLES AND ENGINES.—(1) Pur-
suant to section 213(a)(4) and (5), the Administrator 
shall identify those classes or categories of new nonroad 
vehicles or engines, or combinations of such classes or cat-
egories, that, in the judgment of the Administrator, both 
contribute significantly to the total emissions of green-
house gases from nonroad engines and vehicles, and pro-
vide the greatest potential for significant and cost-effective 
reductions in emissions of greenhouse gases. The Adminis-
trator shall promulgate standards applicable to emissions 
of greenhouse gases from these new nonroad engines or 
vehicles by December 31, 2012. The Administrator shall 
also promulgate standards applicable to emissions of 
greenhouse gases for such other classes and categories of 
new nonroad vehicles and engines as the Administrator de-
termines appropriate and in the timeframe the Adminis-
trator determines appropriate. The Administrator shall 
base such determination, among other factors, on the rel-
ative contribution of greenhouse gas emissions, and the 
costs for achieving reductions, from such classes or cat-
egories of new nonroad engines and vehicles. The Adminis-
trator may revise these standards from time to time. 
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‘‘(2) Standards under section 213(a)(4) and (5) ap-
plicable to emissions of greenhouse gases from those class-
es or categories of new nonroad engines or vehicles identi-
fied in the first sentence of paragraph (1) of this sub-
section, shall achieve the greatest degree of emissions re-
duction achievable based on the application of technology 
which the Administrator determines will be available at 
the time such standards take effect, taking into consider-
ation cost, energy, and safety factors associated with the 
application of such technology. Any such regulations shall 
take effect at the earliest possible date after such period 
as the Administrator finds necessary to permit the devel-
opment and application of the requisite technology, giving 
appropriate consideration to the cost of compliance within 
such period, the applicable compliance dates for other 
standards, and other appropriate factors, including the pe-
riod of time appropriate for the transfer of applicable tech-
nology from other applications, including motor vehicles, 
and the period of time in which previously promulgated 
regulations have been in effect. 
‘‘(3) For purposes of this section and standards 
under section 213(a)(4) or (5) applicable to emissions of 
greenhouse gases, the term ‘nonroad engines and vehicles’ 
shall include non-internal combustion engines and the ve-
hicles these engines power (such as electric engines and 
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electric vehicles), for those non-internal combustion en-
gines and vehicles which would be in the same category 
and have the same uses as nonroad engines and vehicles 
that are powered by internal combustion engines. 
‘‘(c) AVERAGING, BANKING, AND TRADING OF EMIS-
SIONS CREDITS.—In establishing standards applicable to 
emissions of greenhouse gases pursuant to this section and 
sections 202(a), 213(a)(4) and (5), and 231(a), the Ad-
ministrator may establish provisions for averaging, bank-
ing, and trading of greenhouse gas emissions credits with-
in or across classes or categories of motor vehicles and 
motor vehicle engines, nonroad vehicles and engines (in-
cluding marine vessels), and aircraft and aircraft engines, 
to the extent the Administrator determines appropriate 
and considering the factors appropriate in setting stand-
ards under those sections. Such provisions may include 
reasonable and appropriate provisions concerning genera-
tion, banking, trading, duration, and use of credits. 
‘‘(d) REPORTS.—The Administrator shall, from time 
to time, submit a report to Congress that projects the 
amount of greenhouse gas emissions from the transpor-
tation sector, including transportation fuels, for the years 
2030 and 2050, based on the standards adopted under 
this section. 
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472 
‘‘(e) GREENHOUSE
GASES.—Notwithstanding the 
provisions of section 711, hydrofluorocarbons shall be con-
sidered a greenhouse gas for purposes of this section.’’. 
SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS 
THROUGH TRANSPORTATION EFFICIENCY. 
(a) ENVIRONMENTAL PROTECTION AGENCY.—Title 
VIII of the Clean Air Act, as added by section 331 of this 
Act, is further amended by inserting after part C the fol-
lowing new part: 
‘‘PART D—TRANSPORTATION EMISSIONS 
‘‘SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS 
THROUGH TRANSPORTATION EFFICIENCY. 
‘‘(a) IN GENERAL.—The Administrator, in consulta-
tion with the Secretary of Transportation, shall promul-
gate, and update from time to time, regulations to estab-
lish national transportation-related greenhouse gas emis-
sions reduction goals, standardized models and methodolo-
gies for use in developing surface transportation-related 
greenhouse gas emissions reduction targets pursuant to 
sections 134 and 135 of title 23 of the United States Code 
and methods for collection of data on transportation-re-
lated greenhouse gas emissions. Such goals shall be com-
mensurate with the emissions reductions goals established 
under the American Clean Energy and Security Act of 
2009. In establishing such goals, models, and methodolo-
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gies, the Administrator shall consult with States and met-
ropolitan planning organizations and may utilize existing 
models and methodologies. 
‘‘(b) TIMING.—The Administrator shall— 
‘‘(1) publish proposed regulations under sub-
section (a) not later than 12 months after the date 
of enactment of this section; and 
‘‘(2) promulgate final regulations under sub-
section (a) not later than 18 months after the date 
of enactment of this section. 
‘‘(c) ASSESSMENT.—At least every 6 years after pro-
mulgating final regulations under subsection (a), the Ad-
ministrator, jointly with the Secretary of Transportation, 
shall assess current and projected progress in reducing na-
tional transportation-related greenhouse gas emissions. 
The assessment shall examine the contributions to emis-
sions reductions attributable to improvements in vehicle 
efficiency, greenhouse gas performance of transportation 
fuels, increased efficiency in utilizing transportation sys-
tems and the effects of local and State planning.’’. 
(b) METROPOLITAN PLANNING ORGANIZATIONS.— 
Section 134 of title 23 of the United States Code is 
amended as follows: 
(1) In subsection (a)(1)— 
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(A) by striking ‘‘minimizing’’ and inserting 
‘‘reducing’’; and 
(B) by inserting ‘‘, reliance on oil, impacts 
on 
the 
environment, 
transportation-related 
greenhouse gas emissions’’ after ‘‘consump-
tion’’. 
(2) In subsection (h)(1)(E)— 
(A) by inserting ‘‘sustainability and liv-
ability, reduce surface transportation-related 
greenhouse gas emissions and reliance on oil, 
adapt to the effects of climate change,’’ after 
‘‘energy conservation’’; 
(B) by inserting ‘‘and public health’’ after 
‘‘quality of life’’; and 
(C) by inserting ‘‘, including housing and 
land use patterns’’ after ‘‘development pat-
terns’’. 
(3) In subsection (i)(4)(A) by inserting ‘‘air 
quality, public health, housing, transportation,’’ 
after ‘‘conservation,’’. 
(4) In subsection (k) by inserting at the end the 
following new paragraph: 
‘‘(6) EMISSIONS REDUCTION PROCESS.— 
‘‘(A) IN GENERAL.—Within a metropolitan 
planning area serving a transportation manage-
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ment area, the transportation planning process 
under this section shall address transportation- 
related greenhouse gas emissions by including 
emission reduction targets and strategies. 
‘‘(B) ESTABLISHMENT OF EMISSIONS RE-
DUCTION TARGETS AND STRATEGIES.— 
‘‘(i) IN GENERAL.—Not later than one 
year after the promulgation of the final 
regulations required under section 841 of 
the Clean Air Act, each metropolitan plan-
ning organization shall develop surface 
transportation-related 
greenhouse 
gas 
emission reduction targets, as well as 
strategies to meet such targets, as part of 
the transportation planning process under 
this section. If more than one metropolitan 
planning organization has been designated 
within a metropolitan planning area serv-
ing a transportation management area, 
each such metropolitan planning organiza-
tion shall work cooperatively with other 
such organization to develop the surface 
transportation-related 
greenhouse 
gas 
emission reduction targets required under 
this subparagraph. 
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‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each metropolitan planning organization 
that develops targets and strategies re-
quired under clause (i) shall demonstrate 
progress in stabilizing and reducing trans-
portation-related greenhouse gas emissions 
in each metropolitan planning area serving 
a surface transportation management area. 
The targets and strategies shall, at a min-
imum— 
‘‘(I) be based on the models and 
methodologies established in the final 
regulations required under section 
841 of the Clean Air Act; 
‘‘(II) address sources of surface 
transportation-related greenhouse gas 
emissions and contribute to achieve-
ment of the national transportation- 
related greenhouse gas emissions re-
duction goals; 
‘‘(III) include efforts to increase 
public transportation ridership; and 
‘‘(IV) include efforts to increase 
walking, bicycling, and other forms of 
nonmotorized transportation. 
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‘‘(C) PUBLIC NOTICE.—Each metropolitan 
planning organization shall make its emission 
reduction targets and strategies, and an anal-
ysis of the anticipated effects thereof, available 
to the public through its Web site. 
‘‘(D) ENFORCEMENT.—If the Secretary 
finds that a metropolitan planning organization 
has failed to develop, submit or publish its 
emission reduction targets and strategies, the 
Secretary shall not certify that the require-
ments of this section are met with respect to 
the metropolitan planning process of such orga-
nization.’’. 
(c) STATES.—Section 135 of title 23 of the United 
States Code is amended as follows: 
(1) In subsection (d)(1)(E)— 
(A) by inserting ‘‘sustainability and liv-
ability, reduce surface transportation-related 
greenhouse gas emissions and reliance on oil, 
adapt to the effects of climate change,’’ after 
‘‘energy conservation’’; 
(B) by inserting ‘‘and public health’’ after 
‘‘quality of life’’; and 
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(C) by inserting ‘‘, including housing and 
land use patterns’’ after ‘‘development pat-
terns’’. 
(2) In subsection (f)(2)(D)(i) by inserting ‘‘air 
quality, public health, housing, transportation,’’ 
after ‘‘conservation,’’. 
(3) In subsection (f) by inserting at the end the 
following new paragraph: 
‘‘(9) EMISSIONS REDUCTION PROCESS.— 
‘‘(A) IN GENERAL.—Within a State, the 
transportation planning process under this sec-
tion shall address transportation-related green-
house gas emissions by including emission re-
duction targets and strategies. 
‘‘(B) ESTABLISHMENT OF EMISSIONS RE-
DUCTION TARGETS AND STRATEGIES.— 
‘‘(i) IN GENERAL.—Not later than one 
year after the promulgation of the final 
regulations required under section 841 of 
the Clean Air Act, each State shall develop 
surface transportation-related greenhouse 
gas emission reduction targets, as well as 
strategies to meet such targets, as part of 
the transportation planning process under 
this section. 
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‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each State that develops targets and strat-
egies required under clause (i) shall dem-
onstrate progress in stabilizing and reduc-
ing transportation-related greenhouse gas 
emissions in such State. The targets and 
strategies shall, at a minimum, 
‘‘(I) be based on the models and 
methodologies established in the final 
regulations required under section 
841 of the Clean Air Act; 
‘‘(II) address sources of surface 
transportation-related greenhouse gas 
emissions and contribute to achieve-
ment of the national transportation- 
related greenhouse gas emissions re-
duction goals; 
‘‘(III) include efforts to increase 
public transportation ridership; and 
‘‘(IV) include efforts to increase 
walking, bicycling, and other forms of 
nonmotorized transportation. 
‘‘(D) PUBLIC NOTICE.—Each State shall 
make its emission reduction targets and strate-
gies, and an analysis of the anticipated effects 
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thereof, available to the public through its Web 
site. 
‘‘(E) ENFORCEMENT.—If the Secretary 
finds that a State has failed to develop, submit 
or publish its emission reduction targets and 
strategies, the Secretary shall not certify that 
the requirements of this section are met with 
respect to the statewide planning process of 
such State.’’. 
(d) DEPARTMENT OF TRANSPORTATION.—The Sec-
retary of Transportation shall establish appropriate re-
quirements, including performance measures, to ensure 
that transportation plans developed under sections 134 
and 135 of title 23 of the United States Code sufficiently 
meet the requirements of this section, including achieving 
progress towards national transportation-related green-
house gas emissions reduction goals. 
SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PRO-
GRAM. 
Part B of title VIII of the Clean Air Act, as added 
by section 221 of this Act is amended by adding after sec-
tion 821 the following section: 
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481 
‘‘SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PRO-
GRAM. 
‘‘(a) IN GENERAL.—There is established within the 
Environmental Protection Agency a SmartWay Transport 
Program to quantify, demonstrate, and promote the bene-
fits of technologies, products, fuels, and operational strate-
gies that reduce petroleum consumption, air pollution, and 
greenhouse gas emissions from the mobile source sector. 
‘‘(b) GENERAL DUTIES.—Under the program estab-
lished under this section, the Administrator shall carry out 
each of the following: 
‘‘(1) Development of measurement protocols to 
evaluate the energy consumption and greenhouse gas 
impacts from technologies and strategies in the mo-
bile source sector, including those for passenger 
transport and goods movement. 
‘‘(2) Development of qualifying thresholds for 
certifying, verifying, or designating energy-efficient, 
low-greenhouse gas SmartWay technologies and 
strategies for each mode of passenger transportation 
and goods movement. 
‘‘(3) Development of partnership and recogni-
tion programs to promote best practices and drive 
demand for energy-efficient, low-greenhouse gas 
transportation performance. 
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‘‘(4) Promotion of the availability of, and en-
couragement of the adoption of, SmartWay certified 
or verified technologies and strategies, and publica-
tion of the availability of financial incentives, such 
as assistance from loan programs and other Federal 
and State incentives. 
‘‘(c) SMARTWAY TRANSPORT FREIGHT PARTNER-
SHIP.—The Administrator shall establish a SmartWay 
Transport Freight Partnership program with shippers and 
carriers of goods to promote energy-efficient, low-green-
house gas transportation. In carrying out such partner-
ship, the Administrator shall undertake each of the fol-
lowing: 
‘‘(1) Certification of the energy and greenhouse 
gas performance of participating freight carriers, in-
cluding those operating rail, trucking, marine, and 
other goods movement operations. 
‘‘(2) Publication of a comprehensive energy and 
greenhouse gas performance index of freight modes 
(including rail, trucking, marine, and other modes of 
transporting goods) and individual freight companies 
so that shippers can choose to deliver their goods 
more efficiently. 
‘‘(3) Development of tools for— 
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‘‘(A) carriers to calculate their energy and 
greenhouse gas performance; and 
‘‘(B) shippers to calculate the energy and 
greenhouse gas impacts of moving their prod-
ucts and to evaluate the relative impacts from 
transporting their goods by different modes and 
corporate carriers. 
‘‘(4) Provision of recognition opportunities for 
participating shipper and carrier companies dem-
onstrating advanced practices and achieving superior 
levels of greenhouse gas performance. 
‘‘(d) IMPROVING FREIGHT GREENHOUSE GAS PER-
FORMANCE DATABASES.—The Administrator shall, in co-
ordination with other appropriate agencies, define and col-
lect data on the physical and operational characteristics 
of the Nation’s truck population, with special emphasis on 
data related to energy efficiency and greenhouse gas per-
formance to inform the performance index published 
under subsection (c)(2) of this section, and other means 
of goods transport as necessary, at least every 5 years. 
‘‘(e) ESTABLISHMENT OF FINANCING PROGRAM.— 
The Administrator shall establish a SmartWay Financing 
Program to competitively award funding to eligible entities 
identified by the Administrator in accordance with the 
program requirements in subsection (g). 
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lowance vintage as reported on registered carbon 
trading facilities, calculated using constant dollars. 
‘‘(d) QUANTITY
OF EMISSION ALLOWANCES RE-
LEASED FROM THE STRATEGIC RESERVE.— 
‘‘(1) INITIAL
LIMITS.—For each of calendar 
years 2012 through 2016, the annual limit on the 
number of emission allowances from the strategic re-
serve account that may be auctioned is an amount 
equal to 5 percent of the emission allowances estab-
lished for that calendar year under section 721(a). 
This limit does not apply to international offset 
credits sold on consignment pursuant to subsection 
(h). 
‘‘(2) LIMITS IN SUBSEQUENT YEARS.—For cal-
endar year 2017 and each year thereafter, the an-
nual limit on the number of emission allowances 
from the strategic reserve account that may be auc-
tioned is an amount equal to 10 percent of the emis-
sion allowances established for that calendar year 
under section 721(a). This limit does not apply to 
international offset credits sold on consignment pur-
suant to subsection (h). 
‘‘(3) ALLOCATION OF LIMITATION.—One-fourth 
of each year’s annual strategic reserve auction limit 
under this subsection shall be made available for 
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