single occupancy vehicle use by Federal 
employees nationwide. 
‘‘(6) REPORTING
REQUIREMENTS.—Not later 
than September 30 of the first fiscal year beginning 
after the date of enactment of this paragraph, and 
every 3 years thereafter, the Secretary shall submit 
to the Committee on Transportation and Infrastruc-
ture and the Committee on Oversight and Govern-
ment Reform of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report on nationwide implemen-
tation of the transit pass transportation fringe bene-
fits program under this subsection, including a sum-
mary of the information submitted by agencies pur-
suant to paragraph (5)(F).’’. 
(d) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided, the amendments made by this section shall 
become effective on the first day of the first fiscal year 
beginning after the date of enactment of this Act. 
SEC. 306. CAPITAL COST OF CONTRACTING VANPOOL 
PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish and implement a pilot program to 
carry out vanpool demonstration projects in not more than 
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3 urbanized areas and not more than 2 other than urban-
ized areas. 
(b) PILOT PROGRAM.— 
(1) IN
GENERAL.—Notwithstanding section 
5323(i) of title 49, United States Code, for each 
project selected for participation in the pilot pro-
gram, the Secretary shall allow the non-Federal 
share provided by a recipient of assistance for a cap-
ital project under chapter 53 of such title to include 
the amounts described in paragraph (2). 
(2) CONDITIONS ON ACQUISITION OF VANS.— 
The amounts referred to in paragraph (1) are any 
amounts expended by a private provider of public 
transportation by vanpool for the acquisition of vans 
to be used by such private provider in the recipient’s 
service area, excluding any amounts the provider 
may have received in Federal, State, or local govern-
ment assistance for such acquisition, if the private 
provider enters into a legally binding agreement with 
the recipient that requires the private provider to 
use all revenues it receives in providing public trans-
portation in such service area, in excess of its oper-
ating costs, for the purpose of acquiring vans to be 
used by the private provider in such service area. 
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(c) PROGRAM TERM.—The Secretary may approve an 
application for a vanpool demonstration project for fiscal 
years 2008 through 2009. 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of enactment of this Act, the Secretary shall 
submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate a report containing an assessment of the costs, 
benefits, and efficiencies of the vanpool demonstration 
projects. 
SEC. 307. NATIONAL CONSUMER AWARENESS PROGRAM. 
(a) IN GENERAL.—The Secretary of Transportation 
shall carry out a national consumer awareness program 
to educate the public on the environmental, energy, and 
economic benefits of public transportation alternatives to 
the use of single occupancy vehicles. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,000,000 for fiscal year 2009. Such sums shall remain 
available until expended. 
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SEC. 308. EXCEPTION TO ALTERNATIVE FUEL PROCURE-
MENT REQUIREMENT. 
Section 526 of the Energy Independence and Security 
Act of 2007 (Public Law 110–140; 42 U.S. C. 17142) 
is amended— 
(1) by striking ‘‘No Federal agency’’ and insert-
ing ‘‘(a) REQUIREMENT.—Except as provided in 
subsection (b), no Federal agency’’; and 
(2) by adding at the end the following: 
‘‘(b) EXCEPTION.—Subsection (a) does not prohibit 
a Federal agency from entering into a contract to pur-
chase a generally available fuel that is not an alternative 
or synthetic fuel or predominantly produced from a non-
conventional petroleum source, if— 
‘‘(1) the contract does not specifically require 
the contractor to provide an alternative or synthetic 
fuel or fuel from a nonconventional petroleum 
source; 
‘‘(2) the purpose of the contract is not to obtain 
an alternative or synthetic fuel or fuel from a non-
conventional petroleum source; and 
‘‘(3) the contract does not provide incentives for 
a refinery upgrade or expansion to allow a refinery 
to use or increase its use of fuel from a nonconven-
tional petroleum source.’’. 
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TITLE IV—GREATER ENERGY EF-
FICIENCY 
IN 
BUILDING 
CODES 
SEC. 401. GREATER ENERGY EFFICIENCY IN BUILDING 
CODES. 
(a) IN GENERAL.—Section 304 of the Energy Con-
servation and Production Act (42 U.S.C. 6833) is amend-
ed to read as follows: 
‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI-
CIENCY CODES. 
‘‘(a) UPDATING NATIONAL MODEL BUILDING EN-
ERGY CODES.—(1) The Secretary shall support updating 
the national model building energy codes and standards 
at least every three years to achieve overall energy savings, 
compared to the 2006 IECC for residential buildings and 
ASHRAE Standard 90.1–2004 for commercial buildings, 
of at least— 
‘‘(A) 30 percent in editions of each model code 
or standard released in or after 2010; and 
‘‘(B) 50 percent in editions of each model code 
or standard released in or after 2020. 
Targets for specific years shall be set by the Secretary 
at least 3 years in advance of each target year, coordinated 
with the IECC and ASHRAE Standard 90.1 cycles, at the 
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maximum level of energy efficiency that is technologically 
feasible and life-cycle cost effective. 
‘‘(2)(A) Whenever the provisions of the IECC or 
ASHRAE Standard 90.1 regarding building energy use 
are revised, the Secretary shall make a preliminary deter-
mination not later than 90 days after the date of the revi-
sion, and a final determination not later than 12 months 
after the date of such revision, on— 
‘‘(i) whether such revision will improve energy 
efficiency in buildings; and 
‘‘(ii) whether such revision will meet the targets 
under paragraph (1). 
‘‘(B) If the Secretary makes a determination under 
subparagraph (A)(ii) that a code or standard does not 
meet the targets under paragraph (1), or if a national 
model code or standard is not updated for more than three 
years, then the Secretary shall, within 12 months after 
such determination, establish a modified code or standard 
that meets such targets. Any such modified code or stand-
ard— 
‘‘(i) shall achieve the maximum level of energy 
savings that is technologically feasible and life-cycle 
cost-effective; 
‘‘(ii) shall be based on the latest revision of the 
IECC or ASHRAE Standard 90.1, including any 
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amendments or additions thereto, but may also con-
sider other model codes or standards; and 
‘‘(iii) shall serve as the baseline for the next de-
termination under subparagraph (A)(i). 
‘‘(C) The Secretary shall provide the opportunity for 
public comment on targets, determinations, and modified 
codes and standards under this subsection, and shall pub-
lish notice of targets, determinations, and modified codes 
and standards under this subsection in the Federal Reg-
ister. 
‘‘(b) STATE CERTIFICATION OF BUILDING ENERGY 
CODE UPDATES.—(1) Not later than 2 years after the 
date of enactment of this subsection, each State shall cer-
tify to the Secretary that it has reviewed and updated the 
provisions of its residential and commercial building codes 
regarding energy efficiency. Such certification shall in-
clude a demonstration that such State’s code provisions 
meet or exceed the 2006 IECC for residential buildings 
and the ASHRAE Standard 90.1–2007 for commercial 
buildings, or achieve equivalent or greater energy savings. 
‘‘(2)(A) If the Secretary makes an affirmative deter-
mination under subsection (a)(2)(A)(i) or establishes a 
modified code or standard under subsection (a)(2)(B), 
each State shall, within 2 years after such determination 
or establishment, certify that it has reviewed and updated 
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the provisions of its building code regarding energy effi-
ciency. Such certification shall include a demonstration 
that such State’s code provisions meet or exceed the re-
vised code or standard, or achieve equivalent or greater 
energy savings. 
‘‘(B) If the Secretary fails to make a determination 
under subsection (a)(2)(A)(i) by the date specified in sub-
section (a)(2), or makes a negative determination, each 
State shall within 2 years after the specified date or the 
date of the determination, certify that it has reviewed the 
revised code or standard, and updated the provisions of 
its building code regarding energy efficiency to meet or 
exceed any provisions found to improve energy efficiency 
in buildings, or to achieve equivalent or greater energy 
savings in other ways. 
‘‘(c) STATE CERTIFICATION OF COMPLIANCE WITH 
BUILDING CODES.—(1) Each State shall, not later than 
3 years after a certification under subsection (b), certify 
that it has— 
‘‘(A) achieved compliance under paragraph (3) 
with the certified State building energy code or with 
the associated model code or standard; or 
‘‘(B) made significant progress under para-
graph (4) toward achieving compliance with the cer-
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tified State building energy code or with the associ-
ated model code or standard. 
If the State certifies progress toward achieving compli-
ance, the State shall repeat the certification each year 
until it certifies that it has achieved compliance. 
‘‘(2) A certification under paragraph (1) shall include 
documentation of the rate of compliance based on inde-
pendent inspections of a random sample of the new and 
renovated buildings covered by the code in the preceding 
year, or based on an alternative method that yields an ac-
curate measure of compliance. 
‘‘(3)(A) A State shall be considered to achieve compli-
ance under paragraph (1) if— 
‘‘(i) at least 90 percent of new and renovated 
building space covered by the code in the preceding 
year substantially meets all the requirements of the 
code regarding energy efficiency, or achieves an 
equivalent energy savings level; or 
‘‘(ii) the estimated excess energy use of new 
and renovated buildings that did not meet the code 
in the preceding year, compared to a baseline of 
comparable buildings that meet the code, is not more 
than 5 percent of the estimated energy use of all 
new and renovated buildings covered by the code in 
the preceding year. 
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‘‘(B) Only renovations with building permits are cov-
ered under this paragraph. If the Secretary determines the 
percentage targets under subparagraph (A) are not rea-
sonably achievable for renovated residential or commercial 
buildings, the Secretary may reduce the targets for such 
renovated buildings to the highest achievable level. 
‘‘(4)(A) A State shall be considered to have made sig-
nificant progress toward achieving compliance for pur-
poses of paragraph (1) if the State— 
‘‘(i) has developed and is implementing a plan 
for achieving compliance within 8 years, assuming 
continued adequate funding, including active train-
ing and enforcement programs; 
‘‘(ii) after one or more years of adequate fund-
ing, has demonstrated progress, in conformance with 
the plan described in clause (i), toward compliance; 
‘‘(iii) after five or more years of adequate fund-
ing, meets the requirement in paragraph (3) sub-
stituting 80 percent for 90 percent or substituting 
10 percent for 5 percent; and 
‘‘(iv) has not had more than 8 years of ade-
quate funding. 
‘‘(B) Funding shall be considered adequate, for pur-
poses of this paragraph, when the Federal Government 
provides to the States at least $50,000,000 in a year in 
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funding and support for development and implementation 
of State building energy codes, including for training and 
enforcement. 
‘‘(d) FAILURE TO MEET DEADLINES.—(1) A State 
that has not made a certification required under sub-
section (b) or (c) by the applicable deadline shall submit 
to the Secretary a report on— 
‘‘(A) the status of the State with respect to 
meeting the requirements and submitting the certifi-
cation; and 
‘‘(B) a plan for meeting the requirements and 
submitting the certification. 
‘‘(2) Any State for which the Secretary has not ac-
cepted a certification by a deadline under subsection (b) 
or (c) of this section is out of compliance with this section. 
‘‘(3) In any State that is out of compliance with this 
section, a local government may be in compliance with this 
section by meeting the certification requirements under 
subsections (b) and (c) of this section. 
‘‘(4) The Secretary shall annually submit to Con-
gress, and publish in the Federal Register, a report on 
the status of national model building energy codes and 
standards, the status of code adoption and compliance in 
the States, and implementation of this section. The report 
shall include estimates of impacts of past action under this 
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section and potential impacts of further action on lifetime 
energy use by buildings and resulting energy costs to indi-
viduals and businesses. 
‘‘(e) TECHNICAL ASSISTANCE.—(1) The Secretary 
shall on a timely basis provide technical assistance to 
model code-setting and standard development organiza-
tions. This assistance shall include technical assistance as 
requested by the organizations in evaluating code or 
standards proposals or revisions, building energy analysis 
and design tools, building demonstrations, and design as-
sistance and training. The Secretary shall submit code and 
standard amendment proposals, with supporting evidence, 
sufficient to enable the national model building energy 
codes and standards to meet the targets in subsection 
(a)(1). 
‘‘(2) The Secretary shall provide technical assistance 
to States to implement the requirements of this section, 
including procedures for States to demonstrate that their 
code provisions achieve equivalent or greater energy sav-
ings than the national model codes and standards, and to 
improve and implement State residential and commercial 
building energy efficiency codes or to otherwise promote 
the design and construction of energy efficient buildings. 
‘‘(f) AVAILABILITY
OF INCENTIVE FUNDING.—(1) 
The Secretary shall provide incentive funding to States to 
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implement the requirements of this section, and to im-
prove and implement State residential and commercial 
building energy efficiency codes, including increasing and 
verifying compliance with such codes. In determining 
whether, and in what amount, to provide incentive funding 
under this subsection, the Secretary shall consider the ac-
tions proposed by the State to implement the requirements 
of this section, to improve and implement residential and 
commercial building energy efficiency codes, and to pro-
mote building energy efficiency through the use of such 
codes. 
‘‘(2) Additional funding shall be provided under this 
subsection for implementation of a plan to achieve and 
document at least a 90 percent rate of compliance with 
residential and commercial building energy efficiency 
codes, based on energy performance— 
‘‘(A) to a State that has adopted and is imple-
menting, on a Statewide basis— 
‘‘(i) a residential building energy efficiency 
code that meets or exceeds the requirements of 
the 2006 IECC, or any succeeding version of 
that code that has received an affirmative de-
termination from the Secretary under sub-
section (a)(2)(A)(i); and 
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‘‘(ii) a commercial building energy effi-
ciency code that meets or exceeds the require-
ments of the ASHRAE Standard 90.1–2007, or 
any succeeding version of that standard that 
has received an affirmative determination from 
the Secretary under subsection (a)(2)(A)(i); or 
‘‘(B) in a State in which there is no Statewide 
energy code for either residential buildings or com-
mercial buildings, or where State codes fail to com-
ply with subparagraph (A), to a local government 
that has adopted and is implementing residential 
and commercial building energy efficiency codes, as 
described in subparagraph (A). 
‘‘(3) Of the amounts made available under this sub-
section, the Secretary may use amounts required, not ex-
ceeding $500,000 for each State, to train State and local 
officials to implement codes described in paragraph (2). 
‘‘(4) There are authorized to be appropriated to carry 
out this subsection— 
‘‘(A) $70,000,000 for each of fiscal years 2009 
through 2013; and 
‘‘(B) such sums as are necessary for fiscal year 
2014 and each fiscal year thereafter.’’. 
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(b) DEFINITION.—Section 303 of the Energy Con-
servation and Production Act (42 U.S.C. 6832) is amend-
ed by adding at the end the following new paragraph: 
‘‘(17) The term ‘IECC’ means the International 
Energy Conservation Code.’’. 
TITLE V—FEDERAL RENEWABLE 
ELECTRICITY STANDARD 
SEC. 501. FEDERAL RENEWABLE ELECTRICITY STANDARD. 
(a) IN GENERAL.—Title VI of the Public Utility Reg-
ulatory Policies Act of 1978 is amended by adding at the 
end the following: 
‘‘SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) BIOMASS.— 
‘‘(A) IN
GENERAL.—The term ‘biomass’ 
means each of the following: 
‘‘(i) Cellulosic (plant fiber) organic 
materials from a plant that is planted for 
the purpose of being used to produce en-
ergy. 
‘‘(ii) Nonhazardous, plant or algal 
matter that is derived from any of the fol-
lowing: 
‘‘(I) An agricultural crop, crop 
byproduct or residue resource. 
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‘‘(II) Waste such as landscape or 
right-of-way trimmings (but not in-
cluding municipal solid waste, recycla-
ble postconsumer waste paper, paint-
ed, treated, or pressurized wood, wood 
contaminated with plastic or metals). 
‘‘(iii) Animal waste or animal byprod-
ucts. 
‘‘(iv) Landfill methane. 
‘‘(B) NATIONAL FOREST LANDS AND CER-
TAIN OTHER PUBLIC LANDS.—With respect to 
organic material removed from National Forest 
System lands or from public lands administered 
by the Secretary of the Interior, the term ‘bio-
mass’ covers only organic material from (i) eco-
logical forest restoration; (ii) pre-commercial 
thinnings; (iii) brush; (iv) mill residues; and (v) 
slash. 
‘‘(C) EXCLUSION
OF
CERTAIN
FEDERAL 
LANDS.—Notwithstanding subparagraph (B), 
material or matter that would otherwise qualify 
as biomass are not included in the term bio-
mass if they are located on the following Fed-
eral lands: 
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‘‘(i) Federal land containing old 
growth forest or late successional forest 
unless the Secretary of the Interior or the 
Secretary of Agriculture determines that 
the removal of organic material from such 
land is appropriate for the applicable forest 
type and maximizes the retention of late- 
successional and large and old growth 
trees, late-successional and old growth for-
est structure, and late-successional and old 
growth forest composition. 
‘‘(ii) Federal land on which the re-
moval of vegetation is prohibited, including 
components of the National Wilderness 
Preservation System. 
‘‘(iii) Wilderness Study Areas. 
‘‘(iv) Inventoried roadless areas. 
‘‘(v) Components of the National 
Landscape Conservation System. 
‘‘(vi) National Monuments. 
‘‘(2) ELIGIBLE
FACILITY.—The term ‘eligible 
facility’ means— 
‘‘(A) a facility for the generation of electric 
energy from a renewable energy resource that is 
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placed in service on or after January 1, 2001; 
or 
‘‘(B) a repowering or cofiring increment. 
‘‘(3) EXISTING FACILITY.—The term ‘existing 
facility’ means a facility for the generation of elec-
tric energy from a renewable energy resource that is 
not an eligible facility. 
‘‘(4) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional genera-
tion that is achieved from increased efficiency or ad-
ditions of capacity made on or after January 1, 
2001, or the effective date of an existing applicable 
State renewable portfolio standard program at a hy-
droelectric facility that was placed in service before 
that date. 
‘‘(5) INDIAN
LAND.—The term ‘Indian land’ 
means— 
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria; 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo, or rancheria title to 
which was on the date of enactment of this 
paragraph either held by the United States for 
the benefit of any Indian tribe or individual or 
held by any Indian tribe or individual subject to 
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restriction by the United States against alien-
ation; 
‘‘(C) any dependent Indian community; or 
‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native 
Claims Settlement Act. 
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.), 
which is recognized as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians. 
‘‘(7) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated by a re-
newable energy resource. 
‘‘(8) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means solar, wind, 
ocean, tidal, geothermal energy, biomass, landfill 
gas, incremental hydropower, or hydrokinetic energy. 
‘‘(9) REPOWERING OR COFIRING INCREMENT.— 
The 
term 
‘repowering 
or 
cofiring 
increment’ 
means— 
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section, a person that sells electric energy to electric 
consumers that, in combination with the sales of any 
affiliate organized after the date of enactment of 
this section, sells not less that 1,000,000 megawatt 
hours of electric energy to consumers for purposes 
other than resale shall qualify as a retail electric 
supplier. For purposes of this paragraph, sales by 
any person to a parent company or to other affiliates 
of such person shall not be treated as sales to elec-
tric consumers. 
‘‘(B) Such term does not include the United 
States, a State or any political subdivision of a 
State, or any agency, authority, or instrumentality 
of any one or more of the foregoing, or a rural elec-
tric cooperative, except that a political subdivision of 
a State, or an agency, authority, or instrumentality 
of the United States, a State or a political subdivi-
sion of a State, or a rural electric cooperative that 
sells electric energy to electric consumers or any 
other entity that sells electric energy to electric con-
sumers that would not otherwise qualify as a retail 
electric supplier shall be deemed a retail electric sup-
plier if such entity notifies the Secretary that it vol-
untarily agrees to participate in the Federal renew-
able electricity standard program. 
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‘‘(11) RETAIL
ELECTRIC
SUPPLIER’S
BASE 
AMOUNT.—The term ‘retail electric supplier’s base 
amount’ means the total amount of electric energy 
sold by the retail electric supplier, expressed in 
terms of kilowatt hours, to electric customers for 
purposes other than resale during the most recent 
calendar year for which information is available, ex-
cluding— 
‘‘(A) electric energy that is not incremental 
hydropower generated by a hydroelectric facil-
ity; and 
‘‘(B) electricity generated through the in-
cineration of municipal solid waste. 
‘‘(b) COMPLIANCE.—For each calendar year begin-
ning in calendar year 2010, each retail electric supplier 
shall meet the requirements of subsection (c) by submit-
ting to the Secretary, not later than April 1 of the fol-
lowing calendar year, one or more of the following: 
‘‘(1) Federal renewable energy credits issued 
under subsection (e). 
‘‘(2) Federal energy efficiency credits issued 
under subsection (i), except that Federal energy effi-
ciency credits may not be used to meet more than 
27 percent of the requirements of subsection (c) in 
any calendar year. Energy efficiency credits may 
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only be used for compliance in a State where the 
Governor has petitioned the Secretary pursuant to 
subjection (i)(2). 
‘‘(3) Certification of the renewable energy gen-
erated and electricity savings pursuant to the funds 
associated with State compliance payments as speci-
fied in subsection (e)(3)(G). 
‘‘(4) Alternative compliance payments pursuant 
to subsection (j). 
‘‘(c) REQUIRED ANNUAL PERCENTAGE.—For cal-
endar years 2010 through 2039, the required annual per-
centage of the retail electric supplier’s base amount that 
shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement 
pursuant to subsection (d), shall be the percentage speci-
fied in the following table: 
Required annual 
‘‘Calendar Years 
percentage 
2010 ...................................................................................................
2.75 
2011 ...................................................................................................
2.75 
2012 ...................................................................................................
3.75 
2013 ...................................................................................................
4.5 
2014 ...................................................................................................
5.5 
2015 ...................................................................................................
6.5 
2016 ...................................................................................................
7.5 
2017 ...................................................................................................
8.25 
2018 ...................................................................................................
10.25 
2019 ...................................................................................................
12.25 
2020 and thereafter through 2039 ....................................................
‘‘(d) RENEWABLE ENERGY
AND ENERGY EFFI-
CIENCY CREDITS.—(1) A retail electric supplier may sat-
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isfy the requirements of subsection (b)(1) through the sub-
mission of Federal renewable energy credits— 
‘‘(A) issued to the retail electric supplier under 
subsection (e); 
‘‘(B) obtained by purchase or exchange under 
subsection (f) or (g); or 
‘‘(C) borrowed under subsection (h). 
‘‘(2) A retail electric supplier may satisfy the require-
ments of subsection (b)(2) through the submission of Fed-
eral energy efficiency credits issued to the retail electric 
supplier obtained by purchase or exchange pursuant to 
subsection (i). 
‘‘(3) A Federal renewable energy credit may be 
counted toward compliance with subsection (b)(1) only 
once. A Federal energy efficiency credit may be counted 
toward compliance with subsection (b)(2) only once. 
‘‘(e) ISSUANCE OF FEDERAL RENEWABLE ENERGY 
CREDITS.—(1) The Secretary shall establish by rule, not 
later than 1 year after the date of enactment of this sec-
tion, a program to verify and issue Federal renewable en-
ergy credits to generators of renewable energy, track their 
sale, exchange, and retirement and to enforce the require-
ments of this section. To the extent possible, in estab-
lishing such program, the Secretary shall rely upon exist-
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ing and emerging State or regional tracking systems that 
issue and track non-Federal renewable energy credits. 
‘‘(2) An entity that generates electric energy through 
the use of a renewable energy resource may apply to the 
Secretary for the issuance of renewable energy credits. 
The applicant must demonstrate that the electric energy 
will be transmitted onto the grid or, in the case of a gen-
eration offset, that the electric energy offset would have 
otherwise been consumed on site. The application shall in-
dicate— 
‘‘(A) the type of renewable energy resource used 
to produce the electricity; 
‘‘(B) the location where the electric energy was 
produced; and 
‘‘(C) any other information the Secretary deter-
mines appropriate. 
‘‘(3)(A) Except as provided in subparagraphs (B), 
(C), and (D), the Secretary shall issue to a generator of 
electric energy one Federal renewable energy credit for 
each kilowatt hour of electric energy generated by the use 
of a renewable energy resource at an eligible facility. 
‘‘(B) For purpose of compliance with this section, 
Federal renewable energy credits for incremental hydro-
power shall be based, on the increase in average annual 
generation resulting from the efficiency improvements or 
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capacity additions. The incremental generation shall be 
calculated using the same water flow information used to 
determine a historic average annual generation baseline 
for the hydroelectric facility and certified by the Secretary 
or the Federal Energy Regulatory Commission. The cal-
culation of the Federal renewable energy credits for incre-
mental hydropower shall not be based on any operational 
changes at the hydroelectric facility not directly associated 
with the efficiency improvements or capacity additions. 
‘‘(C) The Secretary shall issue 2 renewable energy 
credits for each kilowatt hour of electric energy generated 
and supplied to the grid in that calendar year through the 
use of a renewable energy resource at an eligible facility 
located on Indian land. For purposes of this paragraph, 
renewable energy generated by biomass cofired with other 
fuels is eligible for two credits only if the biomass was 
grown on such land. 
‘‘(D) For electric energy generated by a renewable 
energy resource at an on-site eligible facility no larger 
than one megawatt in capacity and used to offset part or 
all of the customer’s requirements for electric energy, the 
Secretary shall issue 3 renewable energy credits to such 
customer for each kilowatt hour generated. 
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‘‘(E) In the case of an on-site eligible facility on In-
dian land no more than 3 credits per kilowatt hour may 
be issued. 
‘‘(F) If both a renewable energy resource and a non- 
renewable energy resource are used to generate the electric 
energy, the Secretary shall issue the Federal renewable en-
ergy credits based on the proportion of the renewable en-
ergy resources used. 
‘‘(G) When a generator has sold electric energy gen-
erated through the use of a renewable energy resource to 
a retail electric supplier under a contract for power from 
an existing facility, and the contract has not determined 
ownership of the Federal renewable energy credits associ-
ated with such generation, the Secretary shall issue such 
Federal renewable energy credits to the retail electric sup-
plier for the duration of the contract. 
‘‘(H) Payments made by a retail electricity supplier, 
directly or indirectly, to a State for compliance with a 
State renewable portfolio standard program, or for an al-
ternative compliance mechanism, shall be valued at one 
credit per kilowatt hour for the purpose of subsection 
(b)(2) based on the amount of electric energy generation 
from renewable resources and electricity savings up to 27 
percent of the utility’s requirement that results from those 
payments. 
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‘‘(f) EXISTING FACILITIES.—The Secretary shall en-
sure that a retail electric supplier that acquires Federal 
renewable energy credits associated with the generation of 
renewable energy from an existing facility may use such 
credits for purpose of its compliance with subsection 
(b)(1). Such credits may not be sold, exchanged, or trans-
ferred for the purpose of compliance by another retail elec-
tric supplier. 
‘‘(g) RENEWABLE ENERGY CREDIT TRADING.—(1) A 
Federal renewable energy credit, may be sold, transferred, 
or exchanged by the entity to whom issued or by any other 
entity who acquires the Federal renewable energy credit, 
except for those renewable energy credits from existing fa-
cilities. A Federal renewable energy credit for any year 
that is not submitted to satisfy the minimum renewable 
generation requirement of subsection (c) for that year may 
be carried forward for use pursuant to subsection (b)(1) 
within the next 3 years. 
‘‘(2) A federally owned or cooperatively owned utility, 
or a State or subdivision thereof, that is not a retail elec-
tric supplier that generates electric energy by the use of 
a renewable energy resource at an eligible facility may only 
sell, transfer or exchange a Federal renewable energy 
credit to a cooperatively owned utility or an agency, au-
thority, or instrumentality of a State or political subdivi-
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sion of a State that is a retail electric supplier that has 
acquired the electric energy associated with the credit. 
‘‘(3) The Secretary may delegate to an appropriate 
market-making entity the administration of a national 
tradeable renewable energy credit market and a national 
energy efficiency credit market for purposes of creating 
a transparent national market for the sale or trade of re-
newable energy credits and a transparent national market 
for the sale or trade of Federal energy efficiency credits. 
‘‘(h) RENEWABLE ENERGY CREDIT BORROWING.— 
At any time before the end of calendar year 2012, a retail 
electric supplier that has reason to believe it will not be 
able to fully comply with subsection (b) may— 
‘‘(1) submit a plan to the Secretary dem-
onstrating that the retail electric supplier will earn 
sufficient Federal renewable energy credits and Fed-
eral energy efficiency credits within the next 3 cal-
endar years which, when taken into account, will en-
able the retail electric supplier to meet the require-
ments of subsection (b) for calendar year 2012 and 
the subsequent calendar years involved; and 
‘‘(2) upon the approval of the plan by the Sec-
retary, apply Federal renewable energy credits and 
Federal energy efficiency credits that the plan dem-
onstrates will be earned within the next 3 calendar 
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years to meet the requirements of subsection (b) for 
each calendar year involved. 
The retail electric supplier must repay all of the borrowed 
Federal renewable energy credits and Federal energy effi-
ciency credits by submitting an equivalent number of Fed-
eral renewable energy credits and Federal energy effi-
ciency credits, in addition to those otherwise required 
under subsection (b), by calendar year 2020 or any earlier 
deadlines specified in the approved plan. Failure to repay 
the borrowed Federal renewable energy credits and Fed-
eral energy efficiency credits shall subject the retail elec-
tric supplier to civil penalties under subsection (i) for vio-
lation of the requirements of subsection (b) for each cal-
endar year involved. 
‘‘(i) ENERGY EFFICIENCY CREDITS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) CUSTOMER FACILITY SAVINGS.—The 
term ‘customer facility savings’ means a reduc-
tion in end-use electricity at a facility of an 
end-use consumer of electricity served by a re-
tail electric supplier, as compared to— 
‘‘(i) consumption at the facility during 
a base year; 
‘‘(ii) in the case of new equipment (re-
gardless of whether the new equipment re-
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places existing equipment at the end of the 
useful life of the existing equipment), con-
sumption by the new equipment of average 
efficiency; or 
‘‘(iii) in the case of a new facility, 
consumption at a reference facility. 
‘‘(B) ELECTRICITY
SAVINGS.—The term 
‘electricity savings’ means— 
‘‘(i) customer facility savings of elec-
tricity consumption adjusted to reflect any 
associated increase in fuel consumption at 
the facility; 
‘‘(ii) reductions in distribution system 
losses of electricity achieved by a retail 
electricity distributor, as compared to 
losses during the base years; 
‘‘(iii) the output of new combined heat 
and power systems, to the extent provided 
under paragraph (5); and 
‘‘(iv) recycled energy savings. 
‘‘(C) 
QUALIFYING
ELECTRICITY
SAV-
INGS.—The term ‘qualifying electricity savings’ 
means electricity savings that meet the meas-
urement and verification requirements of para-
graph (4). 
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‘‘(D) RECYCLED
ENERGY
SAVINGS.—The 
term ‘recycled energy savings’ means a reduc-
tion in electricity consumption that is attrib-
utable to electrical or mechanical power, or 
both, produced by modifying an industrial or 
commercial system that was in operation before 
July 1, 2007, in order to recapture energy that 
would otherwise be wasted. 
‘‘(2) PETITION.—The Governor of a State may 
petition the Secretary to allow up to 27 percent of 
the requirements of a retail electric supplier under 
subsection (c) in the State to be met by submitting 
Federal energy efficiency credits issued pursuant to 
this subsection. 
‘‘(3) ISSUANCE OF CREDITS.—(A) Upon peti-
tion by the Governor, the Secretary shall issue en-
ergy efficiency credits for electricity savings de-
scribed in subparagraph (B) achieved in States de-
scribed in paragraph (2) in accordance with this 
subsection. 
‘‘(B) In accordance with regulations promul-
gated by the Secretary, the Secretary shall issue 
credits for— 
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‘‘(i) qualified electricity savings achieved 
by a retail electric supplier in a calendar year; 
and 
‘‘(ii) qualified electricity savings achieved 
by other entities if— 
‘‘(I) the measures used to achieve the 
qualifying electricity savings were installed 
or placed in operation by the entity seeking 
the credit or the designated agent of the 
entity; and 
‘‘(II) no retail electric supplier paid a 
substantial portion of the cost of achieving 
the qualified electricity savings (unless the 
retail electric supplier has waived any enti-
tlement to the credit). 
‘‘(4) MEASUREMENT
AND
VERIFICATION
OF 
ELECTRICITY
SAVINGS.—Not later than June 30, 
2009, the Secretary shall promulgate regulations re-
garding the measurement and verification of elec-
tricity savings under this subsection, including regu-
lations covering— 
‘‘(A) procedures and standards for defining 
and measuring electricity savings that will be 
eligible to receive credits under paragraph (3), 
which shall— 
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‘‘(i) specify the types of energy effi-
ciency and energy conservation that will be 
eligible for the credits; 
‘‘(ii) require that energy consumption 
for customer facilities or portions of facili-
ties in the applicable base and current 
years be adjusted, as appropriate, to ac-
count for changes in weather, level of pro-
duction, and building area; 
‘‘(iii) account for the useful life of 
electricity savings measures; 
‘‘(iv) include specified electricity sav-
ings values for specific, commonly-used ef-
ficiency measures; 
‘‘(v) specify the extent to which elec-
tricity savings attributable to measures 
carried out before the date of enactment of 
this section are eligible to receive credits 
under this subsection; and 
‘‘(vi) exclude electricity savings that 
(I) are not properly attributable to meas-
ures carried out by the entity seeking the 
credit; or (II) have already been credited 
under this section to another entity; 
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‘‘(B) procedures and standards for third- 
party verification of reported electricity savings; 
and 
‘‘(C) such requirements for information, 
reports, and access to facilities as may be nec-
essary to carry out this subsection. 
‘‘(5) COMBINED
HEAT
AND
POWER.—Under 
regulations promulgated by the Secretary, the incre-
ment of electricity output of a new combined heat 
and power system that is attributable to the higher 
efficiency of the combined system (as compared to 
the efficiency of separate production of the electric 
and thermal outputs), shall be considered electricity 
savings under this subsection. 
‘‘(j) ENFORCEMENT.—A retail electric supplier that 
does not comply with subsection (b) shall be liable for the 
payment of a civil penalty. That penalty shall be calculated 
on the basis of the number of kilowatt-hours represented 
by the retail electric supplier’s failure to comply with sub-
section (b), multiplied by the lesser of 4.5 cents (adjusted 
for inflation for such calendar year, based on the Gross 
Domestic Product Implicit Price Deflator) or 300 percent 
of the average market value of Federal renewable energy 
credits and energy efficiency credits for the compliance pe-
riod. Any such penalty shall be due and payable without 
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demand to the Secretary as provided in the regulations 
issued under subsection (e). 
‘‘(k) ALTERNATIVE COMPLIANCE PAYMENTS.—The 
Secretary shall accept payment equal to the lesser of: 
‘‘(1) 200 percent of the average market value of 
Federal renewable energy credits and Federal energy 
efficiency credits for the applicable compliance pe-
riod; or 
‘‘(2) 2.5 cents per kilowatt hour adjusted on 
January 1 of each year following calendar year 2006 
based on the Gross Domestic Product Implicit Price 
Deflator, 
as a means of compliance under subsection (b)(4) 
‘‘(l) INFORMATION
COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
‘‘(1) the annual renewable energy generation of 
any retail electric supplier, Federal renewable energy 
credits submitted by a retail electric supplier pursu-
ant to subsection (b)(1) and Federal energy effi-
ciency credits submitted by a retail electric supplier 
pursuant to subsection (b)(2); 
‘‘(2) annual electricity savings achieved pursu-
ant to subsection (i); 
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‘‘(3) the validity of Federal renewable energy 
credits submitted for compliance by a retail electric 
supplier to the Secretary; and 
‘‘(4) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(m) ENVIRONMENTAL SAVINGS CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
‘‘(n) STATE PROGRAMS.—(1) Nothing in this section 
diminishes any authority of a State or political subdivision 
of a State to— 
‘‘(A) adopt or enforce any law or regulation re-
specting renewable energy or energy efficiency, in-
cluding but not limited to programs that exceed the 
required amount of renewable energy or energy effi-
ciency under this section, or 
‘‘(B) regulate the acquisition and disposition of 
Federal renewable energy credits and Federal energy 
efficiency credits by retail electric suppliers. 
No law or regulation referred to in subparagraph 
(A) shall relieve any person of any requirement oth-
erwise applicable under this section. The Secretary, 
in consultation with States having renewable energy 
programs and energy efficiency programs, shall pre-
serve the integrity of such State programs, including 
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programs that exceed the required amount of renew-
able energy and energy efficiency under this section, 
and shall facilitate coordination between the Federal 
program and State programs. 
‘‘(2) In the rule establishing the program under this 
section, the Secretary shall incorporate common elements 
of existing renewable energy and energy efficiency pro-
grams, including State programs, to ensure administrative 
ease, market transparency, and effective enforcement. The 
Secretary shall work with the States to minimize adminis-
trative burdens and costs to retail electric suppliers. 
‘‘(o) RECOVERY OF COSTS.—An electric utility whose 
sales of electric energy are subject to rate regulation, in-
cluding any utility whose rates are regulated by the Com-
mission and any State regulated electric utility, shall not 
be denied the opportunity to recover the full amount of 
the prudently incurred incremental cost of renewable en-
ergy and energy efficiency obtained to comply with the re-
quirements of subsection (b). For purposes of this sub-
section, the definitions in section 3 of this Act shall apply 
to the terms electric utility, State regulated electric utility, 
State agency, Commission, and State regulatory authority. 
‘‘(p) PROGRAM REVIEW.—The Secretary shall enter 
into a contract with the National Academy of Sciences to 
conduct a comprehensive evaluation of all aspects of the 
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program established under this section, within 8 years of 
enactment of this section. The study shall include an eval-
uation of— 
‘‘(1) the effectiveness of the program in increas-
ing the market penetration and lowering the cost of 
the eligible renewable energy and energy efficiency 
technologies; 
‘‘(2) the opportunities for any additional tech-
nologies and sources of renewable energy and energy 
efficiency emerging since enactment of this section; 
‘‘(3) the impact on the regional diversity and 
reliability of supply sources, including the power 
quality benefits of distributed generation; 
‘‘(4) the regional resource development relative 
to renewable potential and reasons for any under in-
vestment in renewable resources; and 
‘‘(5) the net cost/benefit of the renewable elec-
tricity standard to the national and State economies, 
including retail power costs, economic development 
benefits of investment, avoided costs related to envi-
ronmental and congestion mitigation investments 
that would otherwise have been required, impact on 
natural gas demand and price, effectiveness of green 
marketing programs at reducing the cost of renew-
able resources. 
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The Secretary shall transmit the results of the evaluation 
and any recommendations for modifications and improve-
ments to the program to Congress not later than January 
1, 2016. 
‘‘(q) STATE RENEWABLE ENERGY AND ENERGY EF-
FICIENCY ACCOUNT PROGRAM.—(1) There is established 
in the Treasury a State renewable energy and energy effi-
ciency account program. 
‘‘(2) All money collected by the Secretary from the 
alternative compliance payments under subsection (k) 
shall be deposited into the State renewable energy and en-
ergy efficiency account established pursuant to this sub-
section. 
‘‘(3) Proceeds deposited in the State renewable en-
ergy and energy efficiency account shall be used by the 
Secretary, subject to annual appropriations, for a program 
to provide grants to the State agency responsible for ad-
ministering a fund to promote renewable energy genera-
tion and energy efficiency for customers of the State, or 
an alternative agency designated by the State, or if no 
such agency exists, to the State agency developing State 
energy conservation plans under section 363 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) for the pur-
poses of promoting renewable energy production and pro-
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viding energy assistance and weatherization services to 
low-income consumers. 
‘‘(4) The Secretary may issue guidelines and criteria 
for grants awarded under this subsection. At least 75 per-
cent of the funds provided to each State shall be used for 
promoting renewable energy production and energy effi-
ciency through grants, production incentives or other 
state-approved funding mechanisms. The funds shall be 
allocated to the States on the basis of retail electric sales 
subject to the Renewable electricity Standard under this 
section or through voluntary participation. State agencies 
receiving grants under this section shall maintain such 
records and evidence of compliance as the Secretary may 
require.’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
such title is amended by adding the following new item 
at the end: 
‘‘Sec. 610. Federal renewable electricity standard.’’. 
(c) SUNSET.—Section 610 of such title and the item 
relating to such section 610 in the table of contents for 
such title are each repealed as of December 31, 2039. 
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100 
TITLE VI—GREEN RESOURCES 
FOR 
ENERGY 
EFFICIENT 
NEIGHBORHOODS 
SEC. 601. SHORT TITLE AND TABLE OF CONTENTS. 
This title may be cited as the ‘‘Green Resources for 
Energy Efficient Neighborhoods Act of 2008’’ or the 
‘‘GREEN Act of 2008’’. 
SEC. 602. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) GREEN BUILDING STANDARDS.—The term 
‘‘green building standards’’ means standards to re-
quire use of sustainable design principles to reduce 
the use of nonrenewable resources, encourage en-
ergy-efficient construction and rehabilitation and the 
use of renewable energy resources, minimize the im-
pact of development on the environment, and im-
prove indoor air quality. 
(2) HUD.—The term ‘‘HUD’’ means the De-
partment of Housing and Urban Development. 
(3) HUD ASSISTANCE.—The term ‘‘HUD as-
sistance’’ means financial assistance that is awarded, 
competitively or noncompetitively, allocated by for-
mula, or provided by HUD through loan insurance 
or guarantee. 
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101 
(4) NONRESIDENTIAL STRUCTURE.—The term 
‘‘nonresidential structures’’ means only nonresiden-
tial structures that are appurtenant to single family 
or multifamily housing residential structures, or 
those that are funded by the Secretary of Housing 
and Urban Development through the HUD Commu-
nity Development Block Grant program. 
(5) SECRETARY.—The term ‘‘Secretary’’, unless 
otherwise specified, means the Secretary of Housing 
and Urban Development. 
SEC. 603. IMPLEMENTATION OF ENERGY EFFICIENCY PAR-
TICIPATION 
INCENTIVES 
FOR 
HUD 
PRO-
GRAMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary shall issue 
such regulations as may be necessary to establish annual 
energy efficiency participation incentives to encourage par-
ticipants in programs administered by the Secretary, in-
cluding recipients under programs for which HUD assist-
ance is provided, to achieve substantial improvements in 
energy efficiency. 
(b) 
REQUIREMENT
FOR
APPROPRIATION
OF 
FUNDS.—The requirement under subsection (a) for the 
Secretary to provide annual energy efficiency participation 
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102 
incentives pursuant to the provisions of this title shall be 
subject to the annual appropriation of necessary funds. 
SEC. 604. MINIMUM HUD ENERGY EFFICIENCY STANDARDS 
AND STANDARDS FOR ADDITIONAL CREDIT. 
(a) MINIMUM HUD STANDARD.— 
(1) RESIDENTIAL STRUCTURES.—A residential 
single family or multifamily structure shall be con-
sidered to comply with the energy efficiency require-
ments under this subsection if— 
(A) the structure complies with the appli-
cable provisions of the American Society of 
Heating, Refrigerating, and Air-Conditioning 
Engineers Standard 90.1–2007, as such stand-
ard or successor standard is in effect for pur-
poses of this section pursuant subsection (c); 
(B) the structure complies with the appli-
cable provisions of the 2006 International En-
ergy Conservation Code, as such standard or 
successor standard is in effect for purposes of 
this section pursuant subsection (c); 
(C) in the case only of an existing struc-
ture, where determined cost effective, the struc-
ture has undergone rehabilitation or improve-
ments, completed after the date of the enact-
ment of this Act, and the energy consumption 
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103 
for the structure has been reduced by at least 
20 percent from the previous level of consump-
tion, as determined in accordance with energy 
audits performed both before and after any re-
habilitation or improvements undertaken to re-
duce such consumption; or 
(D) the structure complies with the appli-
cable provisions of such other energy efficiency 
requirements, standards, checklists, or ratings 
systems as the Secretary may adopt and apply 
by regulation, as may be necessary, for pur-
poses of this section for specific types of resi-
dential single family or multifamily structures 
or otherwise, except that the Secretary shall 
make a determination regarding whether to 
adopt and apply any such requirements, stand-
ards, checklists, or rating system for purposes 
of this section not later than the expiration of 
the 180-day period beginning upon the date of 
receipt of any written request, made in such 
form as the Secretary shall provide, for such 
adoption and application. 
In addition to compliance with any of subparagraphs 
(A) through (D), the Secretary shall by regulation 
require, for any newly constructed residential single 
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family or multifamily structure to be considered to 
comply with the energy efficiency requirements 
under this subsection, that the structure have appro-
priate electrical outlets with the facility and capacity 
to recharge a standard electric passenger vehicle, in-
cluding an electric hybrid vehicle, where such vehicle 
would normally be parked. 
(2) NONRESIDENTIAL STRUCTURES.—For pur-
poses of this section, the Secretary shall identify and 
adopt by regulation, as may be necessary, energy ef-
ficiency requirements, standards, checklists, or rat-
ing systems applicable to nonresidential structures 
that are constructed or rehabilitated with HUD as-
sistance. A nonresidential structure shall be consid-
ered to comply with the energy efficiency require-
ments under this subsection if the structure complies 
with the applicable provisions of any such energy ef-
ficiency requirements, standards, checklist, or rating 
systems identified and adopted by the Secretary pur-
suant to this paragraph, as such standards are in ef-
fect for purposes of this section pursuant to sub-
section (c). 
(b) ADDITIONAL CREDIT FOR COMPLIANCE WITH 
ENHANCED ENERGY EFFICIENCY STANDARDS.— 
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(1) IN
GENERAL.—In addition to compliance 
with the energy efficiency requirements under sub-
section (a), a residential or nonresidential structure 
shall be considered to comply with the enhanced en-
ergy efficiency and conservation standards or the 
green building standards under this subsection, to 
the extent that such structure complies with the ap-
plicable provisions of the standards under paragraph 
(2) or (3), respectively (as such standards are in ef-
fect for purposes of this section, pursuant to sub-
section (c)), in a manner that is not required for 
compliance with the energy efficiency requirements 
under subsection (a) and subject to the Secretary’s 
determination of which standards are applicable to 
which structures. 
(2) ENERGY EFFICIENCY AND CONSERVATION 
STANDARDS.—The energy efficiency and conserva-
tion standards under this paragraph are as follows: 
(A) RESIDENTIAL STRUCTURES.—With re-
spect to residential structures: 
(i) NEW
CONSTRUCTION.—For new 
construction, the Energy Star standards 
established by the Environmental Protec-
tion Agency, as such standards are in ef-
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fect for purposes of this subsection pursu-
ant to subsection (c); 
(ii) EXISTING STRUCTURES.—For ex-
isting structures, a reduction in energy 
consumption from the previous level of 
consumption for the structure, as deter-
mined in accordance with energy audits 
performed both before and after any reha-
bilitation or improvements undertaken to 
reduce such consumption, that exceeds the 
reduction necessary for compliance with 
the energy efficiency requirement under 
subsection (a)(1)(C). 
(B) 
NONRESIDENTIAL
STRUCTURES.— 
With respect to nonresidential structures, such 
energy efficiency and conservation require-
ments, standards, checklists, or rating systems 
for nonresidential structures as the Secretary 
shall identify and adopt by regulation, as may 
be necessary, for purposes of this paragraph. 
(3) GREEN BUILDING STANDARDS.—The green 
building standards under this paragraph are as fol-
lows: 
(A) The national Green Communities cri-
teria checklist for residential construction that 
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provides criteria for the design, development, 
and operation of affordable housing, as such 
checklist or successor checklist is in effect for 
purposes of this section pursuant to subsection 
(c). 
(B) The gold certification level for the 
LEED for New Construction rating system, the 
LEED for Homes rating system, the LEED for 
Core and Shell rating system, as applicable, as 
such systems or successor systems are in effect 
for purposes of this section pursuant to sub-
section (c). 
(C) The Green Globes assessment and rat-
ing system of the Green Buildings Initiative. 
(D) For manufactured housing, energy 
star rating with respect to fixtures, appliances, 
and equipment in such housing, as such stand-
ard or successor standard is in effect for pur-
poses of this section pursuant to subsection (c). 
(E) The National Green Building Stand-
ard, but such standard shall apply for purposes 
of this paragraph only— 
(i) if such standard is ratified under 
the American National Standards Institute 
process; 
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(ii) upon expiration of the 180-day pe-
riod beginning upon such ratification; and 
(iii) if, during such 180-day period, 
the Secretary of Housing and Urban De-
velopment does not reject the applicability 
of such standard for purposes of this para-
graph. 
(F) Any other requirements, standards, 
checklists, or rating systems for green building 
or sustainability as the Secretary may identify 
and adopt by regulation, as may be necessary 
for purposes of this paragraph, except that the 
Secretary shall make a determination regarding 
whether to adopt and apply any such require-
ments, standards, checklist, or rating system 
for purposes of this section not later than the 
expiration of the 180-day period beginning upon 
date of receipt of any written request, made in 
such form as the Secretary shall provide, for 
such adoption and application. 
(4) GREEN BUILDING.—For purposes of this 
subsection, the term ‘‘green building’’ means, with 
respect to standards for structures, standards to re-
quire use of sustainable design principles to reduce 
the use of nonrenewable resources, minimize the im-
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pact of development on the environment, and to im-
prove indoor air quality. 
(5) ENERGY AUDITS.—The Secretary shall es-
tablish standards and requirements for energy au-
dits for purposes of paragraph (2)(A)(ii) and, in es-
tablishing such standards, may consult with any ad-
visory committees established pursuant to section 
605(c)(2) of this title. 
(c) APPLICABILITY
AND
UPDATING
OF
STAND-
ARDS.— 
(1) APPLICABILITY.—Except as provided in 
paragraph (2), the requirements, standards, check-
lists, and rating systems referred to in subsections 
(a) and (b) that are in effect for purposes of this 
section are such requirements, standards, checklists, 
and systems are as in existence upon the date of the 
enactment of this Act. 
(2) UPDATING.—For purposes of this section, 
the Secretary may adopt and apply by regulation, as 
may be necessary, future amendments and supple-
ments to, and editions of, the requirements, stand-
ards, checklists, and rating systems referred to in 
subsections (a) and (b). 
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110 
SEC. 605. ENERGY EFFICIENCY AND CONSERVATION DEM-
ONSTRATION PROGRAM FOR MULTIFAMILY 
HOUSING 
PROJECTS 
ASSISTED 
WITH 
PROJECT-BASED RENTAL ASSISTANCE. 
(a) AUTHORITY.—For multifamily housing projects 
for which project-based rental assistance is provided under 
a covered multifamily assistance program, the Secretary 
shall, subject to the availability of amounts provided in 
advance in appropriation Acts, carry out a program to 
demonstrate the effectiveness of funding a portion of the 
costs of meeting the enhanced energy efficiency standards 
under section 604(b). At the discretion of the Secretary, 
the demonstration program may include incentives for 
housing that is assisted with Indian housing block grants 
provided pursuant to the Native American Housing Assist-
ance and Self-Determination Act of 1996, but only to the 
extent that such inclusion does not violate such Act, its 
regulations, and the goal of such Act of tribal self-deter-
mination. 
(b) GOALS.—The demonstration program under this 
section shall be carried out in a manner that— 
(1) protects the financial interests of the Fed-
eral Government; 
(2) reduces the proportion of funds provided by 
the Federal Government and by owners and resi-
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dents of multifamily housing projects that are used 
for costs of utilities for the projects; 
(3) encourages energy efficiency and conserva-
tion by owners and residents of multifamily housing 
projects and installation of renewable energy im-
provements, such as improvements providing for use 
of solar, wind, geothermal, or biomass energy 
sources; 
(4) creates incentives for project owners to 
carry out such energy efficiency renovations and im-
provements by allowing a portion of the savings in 
operating costs resulting from such renovations and 
improvements to be retained by the project owner, 
notwithstanding otherwise applicable limitations on 
dividends; 
(5) promotes the installation, in existing resi-
dential buildings, of energy-efficient and cost-effec-
tive improvements and renewable energy improve-
ments, such as improvements providing for use of 
solar, wind, geothermal, or biomass energy sources; 
(6) tests the efficacy of a variety of energy effi-
ciency measures for multifamily housing projects of 
various sizes and in various geographic locations; 
(7) tests methods for addressing the various, 
and often competing, incentives that impede owners 
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and residents of multifamily housing projects from 
working together to achieve energy efficiency or con-
servation; and 
(8) creates a database of energy efficiency and 
conservation, and renewable energy, techniques, en-
ergy savings management practices, and energy effi-
ciency and conservation financing vehicles. 
(c) APPROACHES.—In carrying out the demonstra-
tion program under this section, the Secretary may— 
(1) enter into agreements with the Building 
America Program of the Department of Energy and 
other consensus committees under which such pro-
grams, partnerships, or committees assume some or 
all of the functions, obligations, and benefits of the 
Secretary with respect to energy savings; 
(2) establish advisory committees to advise the 
Secretary and any such third party partners on tech-
nological and other developments in the area of en-
ergy efficiency and the creation of an energy effi-
ciency and conservation credit facility and other fi-
nancing opportunities, which committees shall in-
clude representatives of homebuilders, realtors, ar-
chitects, nonprofit housing organizations, environ-
mental protection organizations, renewable energy 
organizations, and advocacy organizations for the el-
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113 
derly and persons with disabilities; any advisory 
committees established pursuant to this paragraph 
shall not be subject to the Federal Advisory Com-
mittee Act (5 U.S.C. App.); 
(3) approve, for a period not to exceed 10 
years, additional adjustments in the maximum 
monthly rents or additional project rental assistance, 
or additional Indian housing block grant funds 
under the Native American Housing Assistance and 
Self-Determination Act of 1996, as applicable, for 
dwelling units in multifamily housing projects that 
are provided project-based rental assistance under a 
covered multifamily assistance program, in such 
amounts as may be necessary to amortize a portion 
of the cost of energy efficiency and conservation 
measures for such projects; 
(4) develop a competitive process for the award 
of such additional assistance for multifamily housing 
projects seeking to implement energy efficiency, re-
newable energy sources, or conservation measures; 
and 
(5) waive or modify any existing statutory or 
regulatory provision that would otherwise impair the 
implementation or effectiveness of the demonstration 
program under this section, including provisions re-
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114 
lating to methods for rent adjustments, com-
parability standards, maximum rent schedules, and 
utility allowances; notwithstanding the preceding 
provisions of this paragraph, the Secretary may not 
waive any statutory requirement relating to fair 
housing, nondiscrimination, labor standards, or the 
environment, except pursuant to existing authority 
to waive non-statutory environmental and other ap-
plicable requirements. 
(d) REQUIREMENT.—During the 4-year period begin-
ning 12 months after the date of the enactment of this 
Act, the Secretary shall carry out demonstration programs 
under this section with respect to not fewer than 50,000 
dwelling units. 
(e) SELECTION.— 
(1) SCOPE.—In order to provide a broad and 
representative profile for use in designing a program 
which can become operational and effective nation-
wide, the Secretary shall carry out the demonstra-
tion program under this section with respect to 
dwelling units located in a wide variety of geographic 
areas and project types assisted by the various cov-
ered multifamily assistance programs and using a 
variety of energy efficiency and conservation and 
funding techniques to reflect differences in climate, 
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types of dwelling units and technical and scientific 
methodologies, and financing options. The Secretary 
shall ensure that the geographic areas included in 
the demonstration program include dwelling units on 
Indian lands (as such term is defined in section 
2601 of the Energy Policy Act of 1992 (25 U.S.C. 
3501), to the extent that dwelling units on Indian 
land have the type of residential structures that are 
the focus of the demonstration program. 
(2) PRIORITY.—The Secretary shall provide pri-
ority for selection for participation in the program 
under this section based on the extent to which, as 
a result of assistance provided, the project will com-
ply with the energy efficiency standards under sub-
section (a), (b), or (c) of section 604 of this title. 
(f) USE OF EXISTING PARTNERSHIPS.—To the ex-
tent feasible, the Secretary shall— 
(1) utilize the Partnership for Advancing Tech-
nology in Housing of the Department of Housing 
and Urban Development to assist in carrying out the 
requirements of this section and to provide education 
and outreach regarding the demonstration program 
authorized under this section; and 
(2) consult with the Secretary of Energy, the 
Administrator of the Environmental Protection 
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Agency, and the Secretary of the Army regarding 
utilizing the Building America Program of the De-
partment of Energy, the Energy Star Program, and 
the Army Corps of Engineers, respectively, to deter-
mine the manner in which they might assist in car-
rying out the goals of this section and providing edu-
cation and outreach regarding the demonstration 
program authorized under this section. 
(g) REPORTS.— 
(1) ANNUAL.—Not later than the expiration of 
the 2-year beginning upon the date of the enactment 
of this Act, and for each year thereafter during the 
term of the demonstration program, the Secretary 
shall submit a report to the Congress annually that 
describes and assesses the demonstration program 
under this section. 
(2) FINAL.—Not later than six months after 
the expiration of the 4-year period described in sub-
section (d), the Secretary shall submit a final report 
to the Congress assessing the demonstration pro-
gram, which— 
(A) shall assess the potential for expanding 
the demonstration program on a nationwide 
basis; and 
(B) shall include descriptions of— 
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(i) the size of each multifamily hous-
ing project for which assistance was pro-
vided under the program; 
(ii) the geographic location of each 
project assisted, by State and region; 
(iii) the criteria used to select the 
projects for which assistance is provided 
under the program; 
(iv) the energy efficiency and con-
servation measures and financing sources 
used for each project that is assisted under 
the program; 
(v) the difference, before and during 
participation in the demonstration pro-
gram, in the amount of the monthly assist-
ance payments under the covered multi-
family assistance program for each project 
assisted under the program; 
(vi) the average length of the term of 
the such assistance provided under the 
program for a project; 
(vii) the aggregate amount of savings 
generated by the demonstration program 
and the amount of savings expected to be 
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118 
generated by the program over time on a 
per-unit and aggregate program basis; 
(viii) the functions performed in con-
nection with the implementation of the 
demonstration program that were trans-
ferred or contracted out to any third par-
ties; 
(ix) an evaluation of the overall suc-
cesses and failures of the demonstration 
program; and 
(x) recommendations for any actions 
to be taken as a result of the such suc-
cesses and failures. 
(3) CONTENTS.—Each annual report pursuant 
to paragraph (1) and the final report pursuant to 
paragraph (2) shall include— 
(A) a description of the status of each mul-
tifamily housing project selected for participa-
tion in the demonstration program under this 
section; and 
(B) findings from the program and rec-
ommendations for any legislative actions. 
(h) COVERED
MULTIFAMILY
ASSISTANCE
PRO-
GRAM.—For purposes of this section, the term ‘‘covered 
multifamily assistance program’’ means— 
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(1) the program under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) for 
project-based rental assistance; 
(2) the program under section 202 of the Hous-
ing Act of 1959 (12 U.S.C. 1701q) for assistance 
for supportive housing for the elderly; 
(3) the program under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 8013) for supportive housing for persons 
with disabilities; and 
(4) the program for assistance under the Native 
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4111). 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$50,000,000 for each fiscal year in which the demonstra-
tion program under this section is carried out. 
(j) REGULATIONS.—Not later than the expiration of 
the 180-day period beginning on the date of the enactment 
of this Act, the Secretary shall issue any regulations nec-
essary to carry out this section. 
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SEC. 606. ADDITIONAL CREDIT FOR FANNIE MAE AND 
FREDDIE MAC HOUSING GOALS FOR ENERGY 
EFFICIENT MORTGAGES. 
Section 1336(a) of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4566(a)), as amended 
by the Federal Housing Finance Regulatory Reform Act 
of 2008 (Public Law 110–289; 122 Stat. 2654), is amend-
ed— 
(1) in paragraph (2), by striking ‘‘paragraph 
(5)’’ and inserting ‘‘paragraphs (5) and (6)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(6) ADDITIONAL CREDIT.— 
‘‘(A) IN GENERAL.—In assigning credit to-
ward achievement under this section of the 
housing goals for mortgage purchase activities 
of the enterprises, the Director shall assign— 
‘‘(i) more than 125 percent credit, for 
such purchases that both— 
‘‘(I) comply with the require-
ments of such goals; and 
‘‘(II) support housing that meets 
the energy efficiency standards under 
section 604(a) of the Green Resources 
for Energy Efficient Neighborhoods 
Act of 2008; and 
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‘‘(ii) credit in addition to credit under 
clause (i), for purchases that both— 
‘‘(I) comply with the require-
ments of such goals, and 
‘‘(II) support housing that com-
plies with the enhanced energy effi-
ciency and conservation standards, or 
the green building standards, under 
section 604(b) of such Act, or both, 
and such additional credit shall be given 
based on the extent to which the housing 
supported with such purchases complies 
with such standards. 
‘‘(B) TREATMENT OF ADDITIONAL CRED-
IT.—The availability of additional credit under 
this paragraph shall not be used to increase any 
housing goal, subgoal, or target established 
under this subpart.’’. 
SEC. 607. DUTY TO SERVE UNDERSERVED MARKETS FOR 
ENERGY-EFFICIENT 
AND 
LOCATION-EFFI-
CIENT MORTGAGES. 
Section 1335 of Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 4565), 
as amended by the Federal Housing Finance Regulatory 
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Reform Act of 2008 (Public Law 110–289; 122 Stat. 
2654), is amended— 
(1) in subsection (a)(1), by adding at the end 
the following new subparagraph: 
‘‘(D) MARKETS
FOR
ENERGY-EFFICIENT 
AND LOCATION-EFFICIENT MORTGAGES.— 
‘‘(i) DUTY.—Subject to clause (ii), the 
enterprise shall develop loan products and 
flexible underwriting guidelines to facilitate 
a secondary market for energy-efficient 
and location-efficient mortgages on hous-
ing for very low-, low-, and moderate in-
come families, and for second and junior 
mortgages made for purposes of energy ef-
ficiency or renewable energy improvements, 
or both. 
‘‘(ii) AUTHORITY TO SUSPEND.—Not-
withstanding any other provision of this 
section, the Director may suspend the ap-
plicability of the requirement under clause 
(i) with respect to an enterprise, for such 
period as is necessary, if the Director de-
termines that exigent circumstances exist 
and such suspension is appropriate to en-
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123 
sure the safety and soundness of the port-
folio holdings of the enterprise.’’; 
(2) by adding at the end the following new sub-
section: 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
ENERGY-EFFICIENT
MORTGAGE.—The 
term ‘energy efficient mortgage’ means a mortgage 
loan under which the income of the borrower, for 
purposes of qualification for such loan, is considered 
to be increased by not less than $1 for each $1 of 
savings projected to be realized by the borrower as 
a result of cost-effective energy saving design, con-
struction or improvements (including use of renew-
able energy sources, such as solar, geothermal, bio-
mass, and wind, super-insulation, energy-saving win-
dows, insulating glass and film, and radiant barrier) 
for the home for which the loan is made. 
‘‘(2) LOCATION-EFFICIENT
MORTGAGE.—The 
term ‘location efficient mortgage’ means a mortgage 
loan under which— 
‘‘(A) the income of the borrower, for pur-
poses of qualification for such loan, is consid-
ered to be increased by not less than $1 for 
each $1 of savings projected to be realized by 
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the borrower because the location of the home 
for which loan is made will result in decreased 
transportation costs for the household of the 
borrower; or 
‘‘(B) the sum of the principal, interest, 
taxes, and insurance due under the mortgage 
loan is decreased by not less than $1 for each 
$1 of savings projected to be realized by the 
borrower because the location of the home for 
which loan is made will result in decreased 
transportation costs for the household of the 
borrower.’’. 
SEC. 608. CONSIDERATION OF ENERGY EFFICIENCY UNDER 
FHA MORTGAGE INSURANCE PROGRAMS AND 
NATIVE AMERICAN AND NATIVE HAWAIIAN 
LOAN GUARANTEE PROGRAMS. 
(a) FHA MORTGAGE INSURANCE.— 
(1) REQUIREMENT.—Title V of the National 
Housing Act is amended by adding after section 542 
(12 U.S.C. 1735f–20) the following new section: 
‘‘SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY. 
‘‘(a) UNDERWRITING STANDARDS.—The Secretary 
shall establish a method to consider, in its underwriting 
standards for mortgages on single-family housing meeting 
the energy efficiency standards under section 604(a) of 
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the Green Resources for Energy Efficient Neighborhoods 
Act of 2008 that are insured under this Act, the impact 
that savings on utility costs has on the income of the mort-
gagor. 
‘‘(b) GOAL.—It is the sense of the Congress that, in 
carrying out this Act, the Secretary should endeavor to 
insure mortgages on single-family housing meeting the en-
ergy efficiency standards under section 604(a) of the 
Green Resources for Energy Efficient Neighborhoods Act 
of 2008 such that at least 50,000 such mortgages are in-
sured during the period beginning upon the date of the 
enactment of such Act and ending on December 31, 
2012.’’. 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of mortgages on single-family housing meeting 
the energy efficiency standards under section 604(a) 
of the Green Resources for Energy Efficient Neigh-
borhoods Act of 2008 that are insured by the Sec-
retary during the applicable collection period, the 
number of defaults and foreclosures occurring on 
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such mortgages during such period, the percentage 
of the total of such mortgages insured during such 
period on which defaults and foreclosure occurred, 
and the rate for such period of defaults and fore-
closures on such mortgages compared to the overall 
rate for such period of defaults and foreclosures on 
mortgages for single-family housing insured under 
this Act by the Secretary.’’. 
(b) INDIAN HOUSING LOAN GUARANTEES.— 
(1) REQUIREMENT.—Section 184 of the Hous-
ing and Community Development Act of 1992 (12 
U.S.C. 1715z–13a) is amended— 
(A) by redesignating subsection (l) as sub-
section (m); and 
(B) by inserting after subsection (k) the 
following new subsection: 
‘‘(l) CONSIDERATION OF ENERGY EFFICIENCY.—The 
Secretary shall establish a method to consider, in its un-
derwriting standards for loans for single-family housing 
meeting the energy efficiency standards under section 
604(a) of the Green Resources for Energy Efficient 
Neighborhoods Act of 2008 that are guaranteed under 
this section, the impact that savings on utility costs has 
on the income of the borrower.’’. 
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127 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)), as amended by subsection (a)(2) of this sec-
tion, is further amended by adding at the end the 
following new paragraph: 
‘‘(4) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of loans guaranteed under section 184 of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–13a) on single-family housing 
meeting the enhanced energy efficiency standards 
under section 604(a) of the Green Resources for En-
ergy Efficient Neighborhoods Act of 2008 that are 
guaranteed by the Secretary during the applicable 
collection period, the number of defaults and fore-
closures occurring on such loans during such period, 
the percentage of the total of such loans guaranteed 
during such period on which defaults and foreclosure 
occurred, and the rate for such period of defaults 
and foreclosures on such loans compared to the over-
all rate for such period of defaults and foreclosures 
on loans for single-family housing guaranteed under 
such section 184 by the Secretary.’’. 
(c) NATIVE HAWAIIAN HOUSING LOAN GUARAN-
TEES.— 
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128 
(1) REQUIREMENT.—Section 184A of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–13b) is amended by inserting 
after subsection (l) the following new subsection: 
‘‘(m) 
ENERGY-EFFICIENT
HOUSING
REQUIRE-
MENT.—The Secretary shall establish a method to con-
sider, in its underwriting standards for loans for single- 
family housing meeting the energy efficiency standards 
under section 604(a) of the Green Resources for Energy 
Efficient Neighborhoods Act of 2008 that are guaranteed 
under this section, the impact that savings on utility costs 
has on the income of the borrower.’’. 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)), as amended by the preceding provisions of 
this section, is further amended by adding at the 
end the following new paragraph: 
‘‘(5) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of loans guaranteed under section 184A of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–13b) on single-family housing 
meeting the enhanced energy efficiency standards 
under section 604(a) of the Green Resources for En-
ergy Efficient Neighborhoods Act of 2008 that are 
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129 
guaranteed by the Secretary during the applicable 
collection period, the number of defaults and fore-
closures occurring on such loans during such period, 
the percentage of the total of such loans guaranteed 
during such period on which defaults and foreclosure 
occurred, and the rate for such period of defaults 
and foreclosures on such loans compared to the over-
all rate for such period of defaults and foreclosures 
on loans for single-family housing guaranteed under 
such section 184A by the Secretary.’’. 
SEC. 609. ENERGY EFFICIENT MORTGAGES EDUCATION 
AND OUTREACH CAMPAIGN. 
Section 106 of the Energy Policy Act of 1992 (12 
U.S.C. 1701z–16) is amended by adding at the end the 
following new subsection: 
‘‘(g) EDUCATION AND OUTREACH CAMPAIGN.— 
‘‘(1) DEVELOPMENT
OF
ENERGY-EFFICIENT 
MORTGAGE OUTREACH PROGRAM.— 
‘‘(A) COMMISSION.—The Secretary, in con-
sultation and coordination with the Secretary of 
Energy, the Secretary of Education, the Sec-
retary of Agriculture, and the Administrator of 
the Environmental Protection Agency, shall es-
tablish a commission to develop and recommend 
model mortgage products and underwriting 
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guidelines that provide market-based incentives 
to prospective home buyers, lenders, and sellers 
to incorporate energy efficiency upgrades in 
new mortgage loan transactions. 
‘‘(B) REPORT.—Not later than 24 months 
after the date of the enactment of the Green 
Resources for Energy Efficient Neighborhoods 
Act of 2008, the Secretary shall provide a writ-
ten report to the Congress on the results of 
work of the commission established pursuant to 
subparagraph (A) and that identifies model 
mortgage products and underwriting guidelines 
that may encourage energy efficiency. 
‘‘(2) IMPLEMENTATION.—After submission of 
the report under paragraph (1)(B), the Secretary, in 
consultation and coordination with the Secretary of 
Energy, the Secretary of Education, and the Admin-
istrator of the Environmental Protection Agency, 
shall carry out a public awareness, education, and 
outreach campaign based on the findings of the com-
mission established pursuant to paragraph (1) to in-
form and educate residential lenders and prospective 
borrowers regarding the availability, benefits, advan-
tages, and terms of energy efficient mortgages made 
available pursuant to this section, energy efficient 
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131 
mortgages that meet the requirements of section 
1335 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 4565), and other mortgages, 
including mortgages for multifamily housing, that 
have energy improvement features and to publicize 
such availability, benefits, advantages, and terms. 
Such actions may include entering into a contract 
with an appropriate entity to publicize and market 
such mortgages through appropriate media. 
‘‘(3) RENEWABLE
ENERGY
HOME
PRODUCT 
EXPOS.—The Congress hereby encourages the Sec-
retary of Housing and Urban Development to work 
with appropriate entities to organize and hold renew-
able energy expositions that provide an opportunity 
for the public to view and learn about renewable en-
ergy products for the home that are currently on the 
market. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
retary to carry out this subsection $5,000,000 for 
each of fiscal years 2009 through 2012.’’. 
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132 
SEC. 610. COLLECTION OF INFORMATION ON ENERGY-EFFI-
CIENT AND LOCATION EFFICIENT MORT-
GAGES THROUGH HOME MORTGAGE DISCLO-
SURE ACT. 
(a) IN GENERAL.—Section 304(b) of the Home Mort-
gage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is 
amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(5) the number and dollar amount of mort-
gage loans for single-family housing and for multi-
family housing that are energy-efficient mortgages 
(as such term is defined in section 1335 of Housing 
and Community Development Act of 1992); and 
‘‘(6) the number and dollar amount of mort-
gage loans for single-family housing and for multi-
family housing that are location-efficient mortgages 
(as such term is defined in section 1335 of Housing 
and Community Development Act of 1992).’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to the first calendar 
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133 
year that begins after the expiration of the 30-day period 
beginning on the date of the enactment of this Act. 
SEC. 611. ENSURING AVAILABILITY OF HOMEOWNERS IN-
SURANCE FOR HOMES NOT CONNECTED TO 
ELECTRICITY GRID. 
(a) IN GENERAL.—In the case of any covered struc-
ture (as such term is defined in subsection (d)), it shall 
be unlawful for any insurer to deny homeowners insurance 
coverage for the structure, or to otherwise discriminate in 
the issuance, cancellation, amount of such coverage, or 
conditions of such coverage for the structure, based solely 
and without any additional actuarial risks upon the fact 
that the structure is not connected to, or able to receive 
electricity service from, any wholesale or retail electric 
power provider. 
(b) CONSIDERATION
OF ACTUARIAL RISK.—Sub-
section (a) may not be construed to prevent any insurer 
from charging rates for homeowners insurance coverage 
for a structure that are based on a good faith actuarial 
analysis of the risk associated with the structure not being 
connected to, or able to receive electricity service from, any 
wholesale or retail electric power provide. Any good faith 
analysis of such risk shall include analysis of the manner 
in which electric power for the structure is provided. 
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134 
(c) INSURING HOMES AND RELATED PROPERTY IN 
INDIAN AREAS.—Notwithstanding any other provision of 
law, covered structures located in Indian areas (as such 
term is defined in section 4 of the Native American Hous-
ing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103)) and constructed or maintained using assist-
ance, loan guarantees, or other authority under the Native 
American Housing Assistance and Self-Determination Act 
of 1996 may be insured by any tribally owned self-insur-
ance risk pool approved by the Secretary of Housing and 
Urban Development. 
(d) COVERED STRUCTURE.—For purposes of this 
section, the term ‘‘covered structure’’ means a residential 
structure that— 
(1) consists of one to four dwelling units; 
(2) is provided power, heat, or electricity from 
renewable energy sources (such as solar, wind, geo-
thermal, or biomass) or a fuel cell; and 
(3) is not connected to any wholesale or retail 
electrical power grid. 
SEC. 612. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT 
MULTIFAMILY HOUSING. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall establish incentives for increas-
ing the energy efficiency of multifamily housing that is 
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135 
subject to a mortgage to be insured under title II of the 
National Housing Act (12 U.S.C. 1707 et seq.) so that 
the housing meets the energy efficiency standards under 
section 604(a) of this title and incentives to encourage 
compliance of such housing with the energy efficiency and 
conservation standards, and the green building standards, 
under section 604(b) of this title, to the extent that such 
incentives are based on the impact that savings on utility 
costs has on the operating costs of the housing, as deter-
mined by the Secretary. 
(b) INCENTIVES.—Such incentives may include, for 
any such multifamily housing that complies with the en-
ergy efficiency standards under section 604(a)— 
(1) providing a discount on the chargeable pre-
miums for the mortgage insurance for such housing 
from the amount otherwise chargeable for such 
mortgage insurance; 
(2) allowing mortgages to exceed the dollar 
amount limits otherwise applicable under law to the 
extent such additional amounts are used to finance 
improvements or measures designed to meet the 
standards referred to in subsection (a); and 
(3) reducing the amount that the owner of such 
multifamily housing meeting the standards referred 
to in subsection (a) is required to contribute. 
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136 
SEC. 613. ENERGY EFFICIENCY CERTIFICATIONS FOR 
HOUSING WITH MORTGAGES INSURED BY 
FHA. 
Section 526 of the National Housing Act (12 U.S.C. 
1735f–4(a)) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘, other than manufactured 
homes,’’ each place such term appears; 
(B) by inserting after the period at the end 
the following: ‘‘The energy performance require-
ments developed and established by the Sec-
retary under this section for manufactured 
homes shall require energy star rating for wall 
fixtures, appliances, and equipment in such 
housing.’’; 
(C) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(D) by adding at the end the following new 
paragraphs: 
‘‘(2) The Secretary shall require, with respect to any 
single- or multi-family residential housing subject to a 
mortgage insured under this Act, that any approval or cer-
tification of the housing for meeting any energy efficiency 
or conservation criteria, standards, or requirements pursu-
ant to this title and any approval or certification required 
pursuant to this title with respect to energy conserving 
improvements or any renewable energy sources, such as 
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137 
wind, solar energy geothermal, or biomass, shall be con-
ducted only by an individual certified by a home energy 
rating system provider who has been accredited to conduct 
such ratings by the Home Energy Ratings System Coun-
cil, the Residential Energy Services Network, or such 
other appropriate national organization, as the Secretary 
may provide, or by licensed professional architect or engi-
neer. If any organization makes a request to the Secretary 
for approval to accredit individuals to conduct energy effi-
ciency or conservation ratings, the Secretary shall review 
and approve or disapprove such request not later than the 
expiration of the 6-month period beginning upon receipt 
of such request. 
‘‘(3) The Secretary shall periodically examine the 
method used to conduct inspections for compliance with 
the requirements under this section, analyze various other 
approaches for conducting such inspections, and review 
the costs and benefits of the current method compared 
with other methods.’’; and 
(2) in subsection (b), by striking ‘‘, other than 
a manufactured home,’’. 
SEC. 614. ASSISTED HOUSING ENERGY LOAN PILOT PRO-
GRAM. 
(a) AUTHORITY.—Not later than the expiration of 
the 12-month period beginning on the date of the enact-
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138 
ment of this Act, the Secretary shall develop and imple-
ment a pilot program under this section to facilitate the 
financing of cost-effective capital improvements for cov-
ered assisted housing projects to improve the energy effi-
ciency and conservation of such projects. 
(b) LOANS.—The pilot program under this section 
shall involve not less than three and not more than five 
lenders, and shall provide for a privately financed loan to 
be made for a covered assisted housing project, which 
shall— 
(1) finance capital improvements for the project 
that meet such requirements as the Secretary shall 
establish, and may involve contracts with third par-
ties to perform such capital improvements, including 
the design of such improvements by licensed profes-
sional architects or engineers; 
(2) have a term to maturity of not more than 
20 years, which shall be based upon the duration 
necessary to realize cost savings sufficient to repay 
the loan; 
(3) be secured by a mortgage subordinate to the 
mortgage for the project that is insured under the 
National Housing Act; and 
(4) provide for a reduction in the remaining 
principal obligation under the loan based on the ac-
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139 
tual resulting cost savings realized from the capital 
improvements financed with the loan. 
(c) UNDERWRITING
STANDARDS.—The Secretary 
shall establish underwriting requirements for loans made 
under the pilot program under this section, which shall— 
(1) require the cost savings projected to be real-
ized from the capital improvements financed with 
the loan, during the term of the loan, to exceed the 
costs of repaying the loan; 
(2) allow the designer or contractor involved in 
designing capital improvements to be financed with 
a loan under the program to carry out such capital 
improvements; and 
(3) include such energy, audit, property, finan-
cial, ownership, and approval requirements as the 
Secretary considers appropriate. 
(d) TREATMENT OF SAVINGS.—The pilot program 
under this section shall provide that the project owner 
shall receive the full financial benefit from any reduction 
in the cost of utilities resulting from capital improvements 
financed with a loan made under the program. 
(e) COVERED ASSISTED HOUSING PROJECTS.—For 
purposes of this section, the term ‘‘covered assisted hous-
ing project’’ means a housing project that— 
(1) is financed by a loan or mortgage that is— 
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140 
(A) insured by the Secretary under sub-
section (d)(3) or (d)(4) of section 221 of the 
National Housing Act (12 U.S.C. 1715l), and 
bears interest at a rate determined under the 
proviso of section 221(d)(5) of such Act; or 
(B) insured or assisted under section 236 
of the National Housing Act (12 U.S.C. 1715z– 
1); 
(2) at the time a loan under this section is 
made, is provided project-based rental assistance 
under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) for 50 percent or more of 
the dwelling units in the project; and 
(3) is not a housing project owned or held by 
the Secretary, or subject to a mortgage held by the 
Secretary. 
SEC. 
615. 
RESIDENTIAL 
ENERGY 
EFFICIENCY 
BLOCK 
GRANT PROGRAM. 
Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK 
GRANT PROGRAM. 
‘‘(a) IN GENERAL.—To the extent amounts are made 
available for grants under this section, the Secretary shall 
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141 
make grants under this section to States, metropolitan cit-
ies and urban counties, Indian tribes, and insular areas 
to carry out energy efficiency improvements in new and 
existing single-family and multifamily housing. 
‘‘(b) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Of the total amount made 
available for each fiscal year for grants under this 
section that remains after reserving amounts pursu-
ant to paragraph (2), the Secretary shall allocate for 
insular areas, for metropolitan cities and urban 
counties, and for States, an amount that bears the 
same ratio to such total amount as the amount allo-
cated for such fiscal year under section 106 for In-
dian tribes, for insular areas, for metropolitan cities 
and urban counties, and for States, respectively, 
bears to the total amount made available for such 
fiscal year for grants under section 106. 
‘‘(2) SET ASIDE FOR INDIAN TRIBES.—Of the 
total amount made available for each fiscal year for 
grants under this section, the Secretary shall allo-
cate not less than one percent to Indian tribes. 
‘‘(c) GRANT AMOUNTS.— 
‘‘(1) ENTITLEMENT COMMUNITIES.—From the 
amounts allocated pursuant to subsection (b) for 
metropolitan cities and urban counties for each fiscal 
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142 
year, the Secretary shall make a grant for such fis-
cal year to each metropolitan city and urban county 
that complies with the requirement under subsection 
(d), in the amount that bears the same ratio such 
total amount so allocated as the amount of the grant 
for such fiscal year under section 106 for such met-
ropolitan city or urban county bears to the aggre-
gate amount of all grants for such fiscal year under 
section 106 for all metropolitan cities and urban 
counties. 
‘‘(2) STATES.—From the amounts allocated 
pursuant to subsection (b) for States for each fiscal 
year, the Secretary shall make a grant for such fis-
cal year to each State that complies with the re-
quirement under subsection (d), in the amount that 
bears the same ratio such total amount so allocated 
as the amount of the grant for such fiscal year 
under section 106 for such State bears to the aggre-
gate amount of all grants for such fiscal year under 
section 106 for all States. Grant amounts received 
by a State shall be used only for eligible activities 
under subsection (e) carried out in nonentitlement 
areas of the State. 
‘‘(3) INDIAN TRIBES.—From the amounts allo-
cated pursuant to subsection (b) for Indian tribes, 
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143 
the Secretary shall make grants to Indian tribes that 
comply with the requirement under subsection (d) on 
the basis of a competition conducted pursuant to 
specific criteria, as the Secretary shall establish by 
regulation, for the selection of Indian tribes to re-
ceive such amount. 
‘‘(4) INSULAR AREAS.—From the amounts allo-
cated pursuant to subsection (b) for insular areas, 
the Secretary shall make a grant to each insular 
area that complies with the requirement under sub-
section (d) on the basis of the ratio of the population 
of the insular area to the aggregate population of all 
insular areas. In determining the distribution of 
amounts to insular areas, the Secretary may also in-
clude other statistical criteria as data become avail-
able from the Bureau of Census of the Department 
of Labor, but only if such criteria are set forth by 
regulation issued after notice and an opportunity for 
comment. 
‘‘(d) STATEMENT OF ACTIVITIES.— 
‘‘(1) REQUIREMENT.—Before receipt the re-
ceipt in any fiscal year of a grant under subsection 
(c) by any grantee, the grantee shall have prepared 
a final statement of housing energy efficiency objec-
tives and projected use of funds as the Secretary 
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172 
‘‘(C) obtaining beneficial terms for any 
mortgage or loan, or qualifying for a larger 
mortgage or loan, secured by a residence which 
meets or will meet energy-efficiency standards. 
‘‘(2) INFORMATION AND REFERRALS.—The in-
formation made available to consumers under para-
graph (1) may include— 
‘‘(A) information on obtaining a home en-
ergy rating and contact information on quali-
fied energy raters in the area of the residence; 
‘‘(B) information on the secondary market 
guidelines that permit lenders to provide more 
favorable terms by allowing lenders to increase 
the ratio on debt-to-income requirements or to 
use the projected utility savings as a compen-
sating factor; 
‘‘(C) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs, 
grants, or loans offered by the Secretary of 
Housing and Urban Development, including the 
Energy Efficient Mortgage Program; 
‘‘(D) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs, 
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191 
this section shall apply to property originally placed 
in service after December 31, 2008. 
(2) REPEAL
OF
CREDIT
PHASEOUT.—The 
amendments made by subsection (b)(1) shall apply 
to taxable years ending after December 31, 2008. 
(3) LIMITATION BASED ON INVESTMENT IN FA-
CILITY.—The amendment made by subsection (b)(2) 
shall apply to property originally placed in service 
after December 31, 2009. 
(4) TRASH
FACILITY
CLARIFICATION.—The 
amendments made by subsection (c) shall apply to 
electricity produced and sold after the date of the 
enactment of this Act. 
(5) EXPANSION OF BIOMASS FACILITIES.—The 
amendments made by subsection (d) shall apply to 
property placed in service after the date of the en-
actment of this Act. 
SEC. 802. PRODUCTION CREDIT FOR ELECTRICITY PRO-
DUCED FROM MARINE RENEWABLES. 
(a) IN GENERAL.—Paragraph (1) of section 45(c) is 
amended by striking ‘‘and’’ at the end of subparagraph 
(G), by striking the period at the end of subparagraph 
(H) and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
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218 
(A) IN
GENERAL.—Section 48A(e)(1) is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (E), by striking the period at the 
end of subparagraph (F) and inserting ‘‘; and’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(G) in the case of any project the applica-
tion for which is submitted during the period 
described in subsection (d)(2)(A)(ii), the project 
includes equipment which separates and seques-
ters at least 65 percent (70 percent in the case 
of an application for reallocated credits under 
subsection (d)(4)) of such project’s total carbon 
dioxide emissions.’’. 
(B) HIGHEST
PRIORITY
FOR
PROJECTS 
WHICH
SEQUESTER
CARBON
DIOXIDE
EMIS-
SIONS.—Section 48A(e)(3) is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A)(iii), 
by striking the period at the end of subpara-
graph (B)(iii) and inserting ‘‘, and’’, and by 
adding at the end the following new subpara-
graph: 
‘‘(C) give highest priority to projects with 
the greatest separation and sequestration per-
centage of total carbon dioxide emissions.’’. 
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