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under subsection (e) for the fiscal year by the ratio
that the population of the State in the most recent
calendar year for which data are available bears to
the total population of all eligible States in that cal-
endar year.
(2) MINIMUM
ALLOCATIONS.—For each fiscal
year, the amounts allocated under this subsection
shall be adjusted proportionately so that no eligible
State is allocated a sum that is less than an amount
determined by the Secretary.
(d) USE OF ALLOCATED FUNDS.—The allocation to a
State energy office under subsection (c) may be used to pay
up to 50 percent of the cost of establishing and carrying
out a State program.
(e) ISSUANCE OF REBATES.—Rebates may be provided
to residential consumers that meet the requirements of the
State program. The amount of a rebate shall be determined
by the State energy office, taking into consideration—
(1) the amount of the allocation to the State en-
ergy office under subsection (c);
(2) the amount of any Federal or State tax in-
centive available for the purchase of the residential
Energy Star product; and
(3) the difference between the cost of the residen-
tial Energy Star product and the cost of an appliance
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that is not a residential Energy Star product, but is
of the same type as, and is the nearest capacity, per-
formance, and other relevant characteristics (as deter-
mined by the State energy office) to the residential
Energy Star product.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section such
sums as are necessary for fiscal year 2003 through fiscal
year 2012.
Subtitle B—Federal Energy
Efficiency
SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.
(a) ENERGY REDUCTION GOALS.—Section 543(a)(1) of
the National Energy Conservation Policy Act (42 U.S.C.
8253(a)(1)) is amended to read as follows:
‘‘(1) Subject to paragraph (2), each agency shall
apply energy conservation measures to, and shall im-
prove the design for the construction of, the Federal
buildings of the agency (including each industrial or
laboratory facility) so that the energy consumption
per gross square foot of the Federal buildings of the
agency in fiscal years 2002 through 2011 is reduced,
as compared with the energy consumption per gross
square foot of the Federal buildings of the agency in
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fiscal year 2000, by the percentage specified in the
following table:
‘‘Fiscal Year
Percentage reduction
2002 ............................................................................................
2003 ............................................................................................
2004 ............................................................................................
2005 ............................................................................................
2006 ............................................................................................
2007 ............................................................................................
2008 ............................................................................................
2009 ............................................................................................
2010 ............................................................................................
2011 ............................................................................................
20.’’.
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE
REQUIREMENT.—Section 543(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)) is further
amended by adding at the end the following:
‘‘(3) Not later than December 31, 2010, the Sec-
retary shall review the results of the implementation
of the energy performance requirement established
under paragraph (1) and submit to Congress rec-
ommendations concerning energy performance re-
quirements for calendar years 2012 through 2021.’’.
(c) EXCLUSIONS.—Section 543(c)(1) of the National
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is
amended to read as follows:
‘‘(1)(A) An agency may exclude, from the energy
performance requirement for a calendar year estab-
lished under subsection (a) and the energy manage-
ment requirement established under subsection (b),
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any Federal building or collection of Federal build-
ings, if the head of the agency finds that—
‘‘(i) compliance with those requirements
would be impracticable;
‘‘(ii) the agency has completed and sub-
mitted all federally required energy management
reports;
‘‘(iii) the agency has achieved compliance
with the energy efficiency requirements of this
Act, the Energy Policy Act of 1992, Executives
Orders, and other Federal law; and
‘‘(iv) the agency has implemented all prac-
ticable, life-cycle cost-effective projects with re-
spect to the Federal building or collection of Fed-
eral buildings to be excluded.
‘‘(B) A finding of impracticability under sub-
paragraph (A)(i) shall be based on—
‘‘(i) the energy intensiveness of activities
carried out in the Federal building or collection
of Federal buildings; or
‘‘(ii) the fact that the Federal building or
collection of Federal buildings is used in the per-
formance of a national security function.’’.
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(d) REVIEW BY SECRETARY.—Section 543(c)(2) of the
National Energy Conservation Policy Act (42 U.S.C.
8253(c)(2)) is amended—
(1) by striking ‘‘impracticability standards’’ and
inserting ‘‘standards for exclusion’’; and
(2) by striking ‘‘a finding of impracticability’’
and inserting ‘‘the exclusion’’.
(e) CRITERIA.—Section 543(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)) is further
amended by adding at the end the following:
‘‘(3) Not later than 180 days after the date of en-
actment of this paragraph, the Secretary shall issue
guidelines that establish criteria for exclusions under
paragraph (1).’’.
(f) REPORTS.—Section 548(b) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(b)) is amended—
(1) in the subsection heading, by inserting ‘‘THE
PRESIDENT AND’’ before ‘‘CONGRESS’’; and
(2) by inserting ‘‘President and’’ before ‘‘Con-
gress’’.
(g) CONFORMING AMENDMENT.—Section 550(d) of the
National Energy Conservation Policy Act (42 U.S.C.
8258b(d)) is amended in the second sentence by striking
‘‘the 20 percent reduction goal established under section
543(a) of the National Energy Conservation Policy Act (42
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U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy reduc-
tion goals established under section 543(a).’’.
SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNT-
ABILITY.
Section 543 of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253) is further amended by adding at
the end the following:
‘‘(e) METERING OF ENERGY USE.—
‘‘(1) DEADLINE.—By October 1, 2004, all Fed-
eral buildings shall, for the purposes of efficient use
of energy and reduction in the cost of electricity used
in such buildings, be metered or submetered in ac-
cordance with guidelines established by the Secretary
under paragraph (2). Each agency shall use, to the
maximum extent practicable, advanced meters or ad-
vanced metering devices that provide data at least
daily and that measure at least hourly consumption
of electricity in the Federal buildings of the agency.
Such data shall be incorporated into existing Federal
energy tracking systems and made available to Fed-
eral facility energy managers.
‘‘(2) GUIDELINES.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this sub-
section, the Secretary, in consultation with the
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Department of Defense, the General Services Ad-
ministration and representatives from the meter-
ing industry, utility industry, energy services
industry, energy efficiency industry, national
laboratories, universities and Federal facility en-
ergy managers, shall establish guidelines for
agencies to carry out paragraph (1).
‘‘(B) REQUIREMENTS
FOR
GUIDELINES.—
The guidelines shall—
‘‘(i) take into consideration—
‘‘(I) the cost of metering and sub-
metering and the reduced cost of oper-
ation and maintenance expected to re-
sult from metering and submetering;
‘‘(II) the extent to which metering
and submetering are expected to result
in increased potential for energy man-
agement, increased potential for energy
savings and energy efficiency improve-
ment, and cost and energy savings due
to utility contract aggregation; and
‘‘(III) 
the 
measurement 
and
verification protocols of the Depart-
ment of Energy;
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‘‘(ii) include recommendations con-
cerning the amount of funds and the num-
ber of trained personnel necessary to gather
and use the metering information to track
and reduce energy use;
‘‘(iii) establish one or more dates, not
later than 1 year after the date of issuance
of the guidelines, on which the requirements
specified in paragraph (1) shall take effect;
and
‘‘(iv) establish exclusions from the re-
quirements specified in paragraph (1) based
on the de minimus quantity of energy use
of a Federal building, industrial process, or
structure.
‘‘(3) PLAN.—No later than 6 months after
the date guidelines are established under para-
graph (2), in a report submitted by the agency
under section 548(a), each agency shall submit to
the Secretary a plan describing how the agency
will implement the requirements of paragraph
(1), including (A) how the agency will designate
personnel primarily responsible for achieving the
requirements and (B) demonstration by the
agency, complete with documentation, of any
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finding that advanced meters or advanced meter-
ing devices, as defined in paragraph (1), are not
practicable.’’.
SEC. 913. FEDERAL BUILDING PERFORMANCE STANDARDS.
(a) REVISED STANDARDS.—Section 305(a) of the En-
ergy Conservation and Production Act (42 U.S.C. 6834(a))
is amended—
(1) in paragraph (2)(A), by striking ‘‘CABO
Model Energy Code, 1992’’ and inserting ‘‘the 2000
International Energy Conservation Code’’; and
(2) by adding at the end the following:
‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI-
CIENCY PERFORMANCE STANDARDS.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this paragraph, the
Secretary of Energy shall establish, by rule, re-
vised Federal building energy efficiency perform-
ance standards that require that, if cost-
effective—
‘‘(i) new commercial buildings and
multifamily high rise residential buildings
be constructed so as to achieve the applica-
ble Energy Star building energy perform-
ance ratings or energy consumption levels
at least 30 percent below those of the most
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recent ASHRAE Standard 90.1, whichever
results in the greater increase in energy effi-
ciency;
‘‘(ii) new residential buildings (other
than those described in clause (i)) be con-
structed so as to achieve the applicable En-
ergy Star building energy performance rat-
ings or achieve energy consumption levels at
least 30 percent below the requirements of
the most recent version of the International
Energy Conservation Code, whichever re-
sults in the greater increase in energy effi-
ciency; and
‘‘(iii) sustainable design principles are
applied to the siting, design, and construc-
tion of all new and replacement buildings.
‘‘(B) ADDITIONAL
REVISIONS.—Not later
than 1 year after the date of approval of amend-
ments to ASHRAE Standard 90.1 or the 2000
International Energy Conservation Code, the
Secretary of Energy shall determine, based on
the cost-effectiveness of the requirements under
the amendments, whether the revised standards
established under this paragraph should be up-
dated to reflect the amendments.
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‘‘(C) STATEMENT ON COMPLIANCE OF NEW
BUILDINGS.—In the budget request of the Federal
agency for each fiscal year and each report sub-
mitted by the Federal agency under section
548(a) of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8258(a)), the head of each
Federal agency shall include—
‘‘(i) a list of all new Federal buildings
of the Federal agency; and
‘‘(ii) a statement concerning whether
the Federal buildings meet or exceed the re-
vised standards established under this para-
graph, including a monitoring and commis-
sioning report that is in compliance with
the measurement and verification protocols
of the Department of Energy.
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated
such sums as are necessary to carry out this
paragraph and to implement the revised stand-
ards established under this paragraph.’’.
(b) ENERGY LABELING PROGRAM.—Section 305(a) of
the Energy Conservation and Production Act (42 U.S.C.
6834(a)) is further amended by adding at the end the fol-
lowing:
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‘‘(e) ENERGY LABELING PROGRAM.—The Secretary of
Energy, in cooperation with the Administrator of the Envi-
ronmental Protection Agency, shall develop an energy label-
ing program for new Federal buildings that exceed the re-
vised standards established under subsection (a)(3) by 15
percent or more.’’.
SEC. 914. PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS.
(a) REQUIREMENTS.—Part 3 of title V of the National
Energy Conservation Policy Act is amended by adding at
the end the following:
‘‘SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT
PRODUCTS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ENERGY STAR PRODUCT.—The term ‘En-
ergy Star product’ means a product that is rated for
energy efficiency under an Energy Star program.
‘‘(2) ENERGY STAR PROGRAM.—The term ‘En-
ergy Star program’ means the program established by
section 324A of the Energy Policy and Conservation
Act.
‘‘(3) EXECUTIVE AGENCY.—The term ‘executive
agency’ has the meaning given the term in section 4
of the Office of Federal Procurement Policy Act (41
U.S.C. 403).
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‘‘(4) FEMP DESIGNATED PRODUCT.—The term
‘FEMP designated product’ means a product that is
designated under the Federal Energy Management
Program of the Department of Energy as being
among the highest 25 percent of equivalent products
for energy efficiency.
‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS.—
‘‘(1) REQUIREMENT.—To meet the requirements
of an executive agency for an energy consuming prod-
uct, the head of the executive agency shall, except as
provided in paragraph (2), procure—
‘‘(A) an Energy Star product; or
‘‘(B) a FEMP designated product.
‘‘(2) EXCEPTIONS.—The head of an executive
agency is not required to procure an Energy Star
product or FEMP designated product under para-
graph (1) if—
‘‘(A) an Energy Star product or FEMP des-
ignated product is not cost effective over the life
cycle of the product; or
‘‘(B) no Energy Star product or FEMP des-
ignated product is reasonably available that
meets the requirements of the executive agency.
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‘‘(3) PROCUREMENT PLANNING.—The head of an
executive agency shall incorporate into the specifica-
tions for all procurements involving energy con-
suming products and systems, and into the factors for
the evaluation of offers received for the procurement,
criteria for energy efficiency that are consistent with
the criteria used for rating Energy Star products and
for rating FEMP designated products.
‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN
FEDERAL CATALOGS.—Energy Star and FEMP designated
products shall be clearly identified and prominently dis-
played in any inventory or listing of products by the Gen-
eral Services Administration or the Defense Logistics Agen-
cy.
(b) CONFORMING AMENDMENT.—The table of contents
in section 1(b) of the National Energy Conservation Policy
Act (42 U.S.C. 8201 note) is amended by inserting after
the item relating to section 551 the following:
‘‘Sec. 552. Federal Government procurement of energy efficient products.’’
(c) REGULATIONS.—Not later than 180 days after the
effective date specified in subsection (f), the Secretary of En-
ergy shall issue guidelines to carry out section 552 of the
National Energy Conservation Policy Act (as added by sub-
section (a)).
(d) DESIGNATION OF ENERGY STAR PRODUCTS.—The
Administrator of the Environmental Protection Agency and
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the Secretary of Energy shall expedite the process of desig-
nating products as Energy Star products (as defined in sec-
tion 552 of the National Energy Conservation Policy Act
(as added by subsection (a)).
(e) DESIGNATION OF ELECTRIC MOTORS.—In the case
of electric motors of 1 to 500 horsepower, agencies shall se-
lect only premium efficient motors that meet a standard
designated by the Secretary. The Secretary shall designate
such a standard within 120 days of the enactment of this
paragraph, after considering the recommendations of asso-
ciated electric motor manufacturers and energy efficiency
groups.
(f) EFFECTIVE DATE.—Subsection (a) and the amend-
ment made by that subsection take effect on the date that
is 180 days after the date of enactment of this Act.
SEC. 915. REPEAL OF ENERGY SAVINGS PERFORMANCE
CONTRACT SUNSET.
Section 801(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(c)) is repealed.
SEC. 916. ENERGY SAVINGS PERFORMANCE CONTRACT
DEFINITIONS.
(a) ENERGY SAVINGS.—Section 804(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is
amended to read as follows:
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‘‘(2) The term ‘energy savings’ means a reduc-
tion in the cost of energy or water, from a base cost
established through a methodology set forth in the con-
tract, used in an existing federally owned building or
buildings or other federally owned facilities as a re-
sult of—
‘‘(A) the lease or purchase of operating
equipment, improvements, altered operation and
maintenance, or technical services;
‘‘(B) the increased efficient use of existing
energy sources by cogeneration or heat recovery,
excluding any cogeneration process for other
than a federally owned building or buildings or
other federally owned facilities; or
‘‘(C) the increased efficient use of existing
water sources.’’.
(b) ENERGY SAVINGS CONTRACT.—Section 804(3) of
the National Energy Conservation Policy Act (42 U.S.C.
8287c(3)) is amended to read as follows:
‘‘(3) The terms ‘energy savings contract’ and ‘en-
ergy savings performance contract’ mean a contract
which provides for the performance of services for the
design, acquisition, installation, testing, operation,
and, where appropriate, maintenance and repair, of
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an identified energy or water conservation measure or
series of measures at one or more locations.’’.
(c) ENERGY OR WATER CONSERVATION MEASURE.—
Section 804(4) of the National Energy Conservation Policy
Act (42 U.S.C. 8287c(4)) is amended to read as follows:
‘‘(4) The term ‘energy or water conservation
measure’ means—
‘‘(A) an energy conservation measure, as de-
fined in section 551(4) (42 U.S.C. 8259(4)); or
‘‘(B) a water conservation measure that im-
proves water efficiency, is life cycle cost effective,
and involves water conservation, water recycling
or reuse, more efficient treatment of wastewater
or stormwater, improvements in operation or
maintenance efficiencies, retrofit activities or
other related activities, not at a Federal hydro-
electric facility.’’.
SEC. 917. REVIEW OF ENERGY SAVINGS PERFORMANCE
CONTRACT PROGRAM.
Within 180 days after the date of the enactment of this
Act, the Secretary of Energy shall complete a review of the
Energy Savings Performance Contract program to identify
statutory, regulatory, and administrative obstacles that
prevent Federal agencies from fully utilizing the program.
In addition, this review shall identify all areas for increas-
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ing program flexibility and effectiveness, including audit
and measurement verification requirements, accounting for
energy use in determining savings, contracting require-
ments, and energy efficiency services covered. The Secretary
shall report these findings to the Committee on Energy and
Commerce of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate, and
shall implement identified administrative and regulatory
changes to increase program flexibility and effectiveness to
the extent that such changes are consistent with statutory
authority.
SEC. 918. FEDERAL ENERGY BANK.
Part 3 of title V of the National Energy Conservation
Policy Act is amended by adding at the end the following:
‘‘SEC. 553. FEDERAL ENERGY BANK.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BANK.—The term ‘Bank’ means the Federal
Energy Bank established by subsection (b).
‘‘(2) ENERGY OR WATER EFFICIENCY PROJECT.—
The term ‘energy or water efficiency project’ means a
project that assists a Federal agency in meeting or ex-
ceeding the energy or water efficiency requirements
of—
‘‘(A) this part;
‘‘(B) title VIII;
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‘‘(C) subtitle F of title I of the Energy Pol-
icy Act of 1992 (42 U.S.C. 8262 et seq.); or
‘‘(D) any applicable Executive order, in-
cluding Executive Order No. 13123.
‘‘(3) FEDERAL
AGENCY.—The term ‘Federal
agency’ means—
‘‘(A) an Executive agency (as defined in
section 105 of title 5, United States Code);
‘‘(B) the United States Postal Service;
‘‘(C) Congress and any other entity in the
legislative branch; and
‘‘(D) a Federal court and any other entity
in the judicial branch.
‘‘(b) ESTABLISHMENT OF BANK.—
‘‘(1) IN GENERAL.—There is established in the
Treasury of the United States a fund to be known as
the ‘Federal Energy Bank’, consisting of—
‘‘(A) such amounts as are deposited in the
Bank under paragraph (2);
‘‘(B) such amounts as are repaid to the
Bank under subsection (c)(2)(D); and
‘‘(C) any interest earned on investment of
amounts in the Bank under paragraph (3).
‘‘(2) DEPOSITS IN BANK.—
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‘‘(A) IN
GENERAL.—Subject to the avail-
ability of appropriations and to subparagraph
(B), the Secretary of the Treasury shall deposit
in the Bank an amount equal to $250,000,000 in
fiscal year 2003 and in each fiscal year there-
after.
‘‘(B) MAXIMUM AMOUNT IN BANK.—Depos-
its under subparagraph (A) shall cease beginning
with the fiscal year following the fiscal year in
which the amounts in the Bank (including
amounts on loan from the Bank) become equal to
or exceed $1,000,000,000.
‘‘(3) INVESTMENT OF AMOUNTS.—The Secretary
of the Treasury shall invest such portion of the Bank
as is not, in the judgment of the Secretary, required
to meet current withdrawals. Investments may be
made only in interest-bearing obligations of the
United States.
‘‘(c) LOANS FROM THE BANK.—
‘‘(1) IN GENERAL.—The Secretary of the Treas-
ury shall transfer from the Bank to the Secretary
such amounts as are appropriated to carry out the
loan program under paragraph (2).
‘‘(2) LOAN PROGRAM.—
‘‘(A) ESTABLISHMENT.—
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‘‘(i) IN GENERAL.—In accordance with
subsection (d), the Secretary, in consulta-
tion with the Secretary of Defense, the Ad-
ministrator of General Services, and the Di-
rector of the Office of Management and
Budget, shall establish a program to make
loans of amounts in the Bank to any Fed-
eral agency that submits an application
satisfactory to the Secretary in order to pay
the costs of a project described in subpara-
graph (C).
‘‘(ii) 
COMMENCEMENT
OF
OPER-
ATIONS.—The Secretary may begin—
‘‘(I) accepting applications for
loans from the Bank in fiscal year
2002; and
‘‘(II) making loans from the Bank
in fiscal year 2003.
‘‘(B) ENERGY SAVINGS PERFORMANCE CON-
TRACTING FUNDING.—To the extent practicable,
an agency shall not submit a project for which
energy performance contracting funding is avail-
able and is acceptable to the Federal agency
under title VIII.
‘‘(C) PURPOSES OF LOAN.—
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‘‘(i) IN
GENERAL.—A loan from the
Bank may be used to pay—
‘‘(I) the costs of an energy or
water efficiency project, or a renewable
or alternative energy project, for a new
or existing Federal building (including
selection and design of the project);
‘‘(II) the costs of an energy meter-
ing plan and metering equipment in-
stalled pursuant to section 543(e) or
for the purpose of verification of the
energy savings under an energy sav-
ings performance contract under title
VIII; or
‘‘(III) at the time of contracting,
the costs of cofunding of an energy sav-
ings performance contract (including a
utility energy service agreement) in
order to shorten the payback period of
the project that is the subject of the en-
ergy savings performance contract.
‘‘(ii) LIMITATION.—A Federal agency
may use not more than 10 percent of the
amount of a loan under subclause (I) or
(II) of clause (i) to pay the costs of admin-
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istration and proposal development (includ-
ing data collection and energy surveys).
‘‘(iii) RENEWABLE AND ALTERNATIVE
ENERGY PROJECTS.—Not more than 25 per-
cent of the amount on loan from the Bank
at any time may be loaned for renewable
energy and alternative energy projects (as
defined by the Secretary in accordance with
applicable law (including Executive Or-
ders)).
‘‘(D) REPAYMENTS.—
‘‘(i) IN GENERAL.—Subject to clauses
(ii) through (iv), a Federal agency shall
repay to the Bank the principal amount of
a loan plus interest at a rate determined by
the President, in consultation with the Sec-
retary and the Secretary of the Treasury.
‘‘(ii) WAIVER OR REDUCTION OF IN-
TEREST.—The Secretary may waive or re-
duce the rate of interest required to be paid
under clause (i) if the Secretary determines
that payment of interest by a Federal agen-
cy at the rate determined under that clause
is not required to fund the operations of the
Bank.
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‘‘(iii) DETERMINATION
OF
INTEREST
RATE.—The interest rate determined under
clause (i) shall be at a rate that is sufficient
to ensure that, beginning not later than Oc-
tober 1, 2007, interest payments will be suf-
ficient to fully fund the operations of the
Bank.
‘‘(iv) INSUFFICIENCY
OF
APPROPRIA-
TIONS.—
‘‘(I) REQUEST
FOR
APPROPRIA-
TIONS.—As part of the budget request
of the Federal agency for each fiscal
year, the head of each Federal agency
shall submit to the President a request
for such amounts as are necessary to
make such repayments as are expected
to become due in the fiscal year under
this subparagraph.
‘‘(II) SUSPENSION OF REPAYMENT
REQUIREMENT.—If, 
for 
any 
fiscal
year, sufficient appropriations are not
made available to a Federal agency to
make repayments under this subpara-
graph, the Bank shall suspend the re-
quirement of repayment under this
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subparagraph until such appropria-
tions are made available.
‘‘(E) FEDERAL
AGENCY
ENERGY
BUDG-
ETS.—Until a loan is repaid, a Federal agency
budget submitted by the President to Congress
for a fiscal year shall not be reduced by the value
of energy savings accrued as a result of any en-
ergy conservation measure implemented using
amounts from the Bank.
‘‘(F) NO
RESCISSION
OR
REPROGRAM-
MING.—A Federal agency shall not rescind or re-
program loan amounts made available from the
Bank except as permitted under guidelines issued
under subparagraph (G).
‘‘(G) GUIDELINES.—The Secretary shall
issue guidelines for implementation of the loan
program under this paragraph, including selec-
tion criteria, maximum loan amounts, and loan
repayment terms.
‘‘(d) SELECTION CRITERIA.—
‘‘(1) IN GENERAL.—The Secretary shall establish
criteria for the selection of projects to be awarded
loans in accordance with paragraph (2).
‘‘(2) SELECTION CRITERIA.—
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‘‘(A) IN
GENERAL.—The Secretary may
make loans from the Bank only for a project
that—
‘‘(i) is technically feasible;
‘‘(ii) is determined to be cost-effective
using life cycle cost methods established by
the Secretary;
‘‘(iii) includes a measurement and
management component, based on the meas-
urement and verification protocols of the
Department of Energy, to—
‘‘(I) commission energy savings
for new and existing Federal facilities;
‘‘(II) monitor and improve energy
efficiency management at existing Fed-
eral facilities; and
‘‘(III) verify the energy savings
under an energy savings performance
contract under title VIII; and
‘‘(iv)(I) in the case of a renewable en-
ergy or alternative energy project, has a
simple payback period of not more than 15
years; and
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‘‘(II) in the case of any other project,
has a simple payback period of not more
than 10 years.
‘‘(B) PRIORITY.—In selecting projects, the
Secretary shall give priority to projects that—
‘‘(i) are a component of a comprehen-
sive energy management project for a Fed-
eral facility; and
‘‘(ii) are designed to significantly re-
duce the energy use of the Federal facility.
‘‘(e) REPORTS AND AUDITS.—
‘‘(1) REPORTS TO THE SECRETARY.—Not later
than 1 year after the completion of installation of a
project that has a cost of more than $1,000,000, and
annually thereafter, a Federal agency shall submit to
the Secretary a report that—
‘‘(A) states whether the project meets or fails
to meet the energy savings projections for the
project; and
‘‘(B) for each project that fails to meet the
energy savings projections, states the reasons for
the failure and describes proposed remedies.
‘‘(2) AUDITS.—The Secretary may audit, or re-
quire a Federal agency that receives a loan from the
Bank to audit, any project financed with amounts
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from the Bank to assess the performance of the
project.
‘‘(3) REPORTS
TO
CONGRESS.—At the end of
each fiscal year, the Secretary shall submit to Con-
gress a report on the operations of the Bank, includ-
ing a statement of—
‘‘(A) the total receipts by the Bank;
‘‘(B) the total amount of loans from
the Bank to each Federal agency; and
‘‘(C) the estimated cost and energy sav-
ings resulting from projects funded with
loans from the Bank.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.’’.
SEC. 919. ENERGY AND WATER SAVING MEASURES IN CON-
GRESSIONAL BUILDINGS.
(a) IN GENERAL.—Part 3 of title V of the National
Energy Conservation Policy Act is amended by adding at
the end:
‘‘SEC. 554. ENERGY AND WATER SAVINGS MEASURES IN
CONGRESSIONAL BUILDINGS.
‘‘(a) IN GENERAL.—The Architect of the Capitol—
‘‘(1) shall develop, update, and implement a cost-
effective energy conservation and management plan
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(referred to in this section as the ‘‘plan’’) for all fa-
cilities administered by the Congress (referred to in
this section as ‘congressional buildings’) to meet the
energy performance requirements for Federal build-
ings established under section 543(a)(1); and
‘‘(2) shall submit the plan to Congress, not later
than 180 days after the date of enactment of this sec-
tion.
‘‘(b) PLAN REQUIREMENTS.—The plan shall include—
‘‘(1) a description of the life-cycle cost analysis
used to determine the cost-effectiveness of proposed en-
ergy efficiency projects;
‘‘(2) a schedule of energy surveys to ensure com-
plete surveys of all congressional buildings every 5
years to determine the cost and payback period of en-
ergy and water conservation measures;
‘‘(3) a strategy for installation of life cycle cost
effective energy and water conservation measures;
‘‘(4) the results of a study of the costs and bene-
fits of installation of submetering in congressional
buildings; and
‘‘(5) information packages and ‘how-to’ guides
for each Member and employing authority of Congress
that detail simple, cost-effective methods to save en-
ergy and taxpayer dollars in the workplace.
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‘‘(c) CONTRACTING AUTHORITY.—The Architect—
‘‘(1) may contract with nongovernmental entities
and use private sector capital to finance energy con-
servation projects and meet energy performance re-
quirements; and
‘‘(2) may use innovative contracting methods
that will attract private sector funding for the instal-
lation of energy efficient and renewable energy tech-
nology, such as energy savings performance contracts
described in title VIII.
‘‘(d) CAPITOL VISITOR CENTER.—The Architect—
‘‘(1) shall ensure that state-of-the-art energy effi-
ciency and renewable energy technologies are used in
the construction and design of the Visitor Center; and
‘‘(2) shall include in the Visitor Center an ex-
hibit on the energy efficiency and renewable energy
measures used in congressional buildings.
‘‘(e) ANNUAL REPORT.—The Architect shall submit to
Congress annually a report on congressional energy man-
agement and conservation programs required under this
section that describes in detail—
‘‘(1) energy expenditures and savings estimates
for each facility;
‘‘(2) energy management and conservation
projects; and
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‘‘(3) future priorities to ensure compliance with
this section.’’.
(b) REPEAL.—Section 310 of the Legislative Branch
Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.
SEC. 920. INCREASED USE OF RECOVERED MATERIAL IN
FEDERALLY FUNDED PROJECTS INVOLVING
PROCUREMENT OF CEMENT OR CONCRETE.
(a) DEFINITIONS.—In this section:
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) AGENCY
HEAD.—The term ‘‘agency head’’
means—
(A) the Secretary of Transportation; and
(B) the head of each other Federal agency
that on a regular basis procures, or provides
Federal funds to pay or assist in paying the cost
of procuring, material for cement or concrete
projects.
(3) CEMENT OR CONCRETE PROJECT.—The term
‘‘cement or concrete project’’ means a project for the
construction or maintenance of a highway or other
transportation facility or a Federal, State, or local
government building or other public facility that—
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(A) involves the procurement of cement or
concrete; and
(B) is carried out in whole or in part using
Federal funds.
(4) RECOVERED MATERIAL.—The term ‘‘recov-
ered material’’ means—
(A) ground granulated blast furnace slag;
(B) coal combustion fly ash; and
(C) any other waste material or byproduct
recovered or diverted from solid waste that the
Administrator, in consultation with an agency
head, determines should be treated as recovered
material under this section for use in cement or
concrete projects paid for, in whole or in part,
by the agency head.
(b) IMPLEMENTATION OF REQUIREMENTS.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Administrator
and each agency head shall take such actions as are
necessary to implement fully all procurement require-
ments and incentives in effect as of the date of enact-
ment of this Act (including guidelines under section
6002 of the Solid Waste Disposal Act (42 U.S.C.
6963)) that provide for the use of cement and concrete
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incorporating recovered material in cement or con-
crete projects.
(2) PRIORITY.—In carrying out paragraph (1)
an agency head shall give priority to achieving great-
er use of recovered material in cement or concrete
projects for which recovered materials historically
have not been used or have been used only minimally.
(c) FULL IMPLEMENTATION STUDY.—
(1) IN GENERAL.—The Administrator and the
Secretary of Transportation, in cooperation with the
Secretary of Energy, shall conduct a study to deter-
mine the extent to which current procurement require-
ments, when fully implemented in accordance with
subsection (b), may realize energy savings and green-
house gas emission reduction benefits attainable with
substitution of recovered material in cement used in
cement or concrete projects.
(2) MATTERS
TO
BE
ADDRESSED.—The study
shall—
(A) quantify the extent to which recovered
materials are being substituted for Portland ce-
ment, particularly as a result of current procure-
ment requirements, and the energy savings and
greenhouse gas emission reduction benefits asso-
ciated with that substitution;
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(B) identify all barriers in procurement re-
quirements to fuller realization of energy savings
and greenhouse gas emission reduction benefits,
including barriers resulting from exceptions from
current law; and
(C)(i) identify potential mechanisms to
achieve greater substitution of recovered material
in types of cement or concrete projects for which
recovered materials historically have not been
used or have been used only minimally;
(ii) evaluate the feasibility of establishing
guidelines or standards for optimized substi-
tution rates of recovered material in those ce-
ment or concrete projects; and
(iii) identify any potential environmental
or economic effects that may result from greater
substitution of recovered material in those ce-
ment or concrete projects.
(3) REPORT.—Not later than 30 months after the
date of enactment of this Act, the Secretary shall sub-
mit to the Committee on Appropriations and Com-
mittee on Environment and Public Works of the Sen-
ate and the Committee on Appropriations and Com-
mittee on Energy and Commerce of the House of Rep-
resentatives a report on the study.
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(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—
Within 1 year of the release of the report in accordance with
subsection (c)(3), the Administrator and each agency head
shall take additional actions authorized under the Solid
Waste Disposal Act (42 U.S.C. 6901 et seq.) to establish
procurement requirements and incentives that provide for
the use of cement and concrete with increased substitution
of recovered material in the construction and maintenance
of cement or concrete projects, so as to—
(1) realize more fully the energy savings and
greenhouse gas emission reduction benefits associated
with increased substitution; and
(2) eliminate barriers identified under subsection
(c).
(e) EFFECT OF SECTION.—Nothing in this section af-
fects the requirements of section 6002 of the Solid Waste
Disposal Act (42 U.S.C. 6962) (including the guidelines
and specifications for implementing those requirements).
Subtitle C—Industrial Efficiency
and Consumer Products
SEC. 921. VOLUNTARY COMMITMENTS TO REDUCE INDUS-
TRIAL ENERGY INTENSITY.
(a) VOLUNTARY AGREEMENTS.—The Secretary of En-
ergy shall enter into voluntary agreements with one or more
persons in industrial sectors that consume significant
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amounts of primary energy per unit of physical output to
reduce the energy intensity of their production activities.
(b) GOAL.—Voluntary agreements under this section
shall have a goal of reducing energy intensity by not less
than 2.5 percent each year from 2002 through 2012.
(c) RECOGNITION.—The Secretary of Energy, in co-
operation with the Administrator of the Environmental
Protection Agency and other appropriate Federal agencies,
shall develop mechanisms to recognize and publicize the
achievements of participants in voluntary agreements
under this section.
(d) DEFINITION.—In this section, the term ‘‘energy in-
tensity’’ means the primary energy consumed per unit of
physical output in an industrial process.
(e) TECHNICAL ASSISTANCE.—An entity that enters
into an agreement under this section and continues to make
a good faith effort to achieve the energy efficiency goals
specified in the agreement shall be eligible to receive from
the Secretary a grant or technical assistance as appropriate
to assist in the achievement of those goals.
(f) REPORT.—Not later than June 30, 2008 and June
30, 2012, the Secretary shall submit to Congress a report
that evaluates the success of the voluntary agreements, with
independent verification of a sample of the energy savings
estimates provided by participating firms.
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SEC. 922. AUTHORITY TO SET STANDARDS FOR COMMER-
CIAL PRODUCTS.
Part B of title III of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6291 et seq.) is amended as follows:
(1) In the heading for such part, by inserting
‘‘AND COMMERCIAL’’ after ‘‘CONSUMER’’.
(2) In section 321(2), by inserting ‘‘or commer-
cial’’ after ‘‘consumer’’.
(3) In paragraphs (4), (5), and (15) of section
321, by striking ‘‘consumer’’ each place it appears
and inserting ‘‘covered’’.
(4) In section 322(a), by inserting ‘‘or commer-
cial’’ after ‘‘consumer’’ the first place it appears in
the material preceding paragraph (1).
(5) In section 322(b), by inserting ‘‘or commer-
cial’’ after ‘‘consumer’’ each place it appears.
(6) In section 322 (b)(1)(B) and (b)(2)(A), by
inserting ‘‘or per-business in the case of a commercial
product’’ after ‘‘per-household’’ each place it appears.
(7) In section 322 (b)(2)(A), by inserting ‘‘or
businesses in the case of commercial products’’ after
‘‘households’’ each place it appears.
(8) In section 322 (B)(2)(C)—
(A) by striking ‘‘term’’ and inserting
‘‘terms’’; and
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(B) by inserting ‘‘and ‘business’ ’’ after
‘‘ ‘household’ ’’.
(9) In section 323 (b)(1) (B) by inserting ‘‘or
commercial’’ after ‘‘consumer’’.
SEC. 923. ADDITIONAL DEFINITIONS.
Section 321 of the Energy Policy and Conservation Act
(42 U.S.C. 6291) is amended by adding at the end the fol-
lowing:
‘‘(32) The term ‘battery charger’ means a device
that charges batteries for consumer products.
‘‘(33) The term ‘commercial refrigerator, freezer
and refrigerator-freezer’ means a refrigerator, freezer
or refrigerator-freezer that—
‘‘(A) is not a consumer product regulated
under this Act; and
‘‘(B) incorporates most components involved
in the vapor-compression cycle and the refrig-
erated compartment in a single package.
‘‘(34) The term ‘external power supply’ means
an external power supply circuit that is used to con-
vert household electric current into either DC current
or lower-voltage AC current to operate a consumer
product.
‘‘(35) The term ‘illuminated exit sign’ means a
sign that—
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‘‘(A) is designed to be permanently fixed in
place to identify an exit; and
‘‘(B) consists of—
‘‘(i) an electrically powered integral
light source that illuminates the legend
‘EXIT’ and any directional indicators; and
‘‘(ii) provides contrast between the leg-
end, any directional indicators, and the
background.
‘‘(36)(A) Except as provided in subsection (B),
the term ‘low-voltage dry-type transformer’ means a
transformer that—
‘‘(i) has an input voltage of 600 volts or
less;
‘‘(ii) is air-cooled;
‘‘(iii) does not use oil as a coolant; and
‘‘(iv) is rated for operation at a frequency
of 60 Hertz.
‘‘(B) The term ‘low-voltage dry-type transformer’
does not include—
‘‘(i) transformers with multiple voltage
taps, with the highest voltage tap equaling at
least 20 percent more than the lowest voltage tap;
‘‘(ii) transformers that are designed to be
used in a special purpose application, such as
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transformers commonly known as drive trans-
formers, rectifier transformers, autotransformers,
Uninterruptible Power System transformers, im-
pedance transformers, harmonic transformers,
regulating transformers, sealed and nonven-
tilating transformers, machine tool transformers,
welding transformers, grounding transformers, or
testing transformers; or
‘‘(iii) any transformer not listed in clause
(ii) that is excluded by the Secretary by rule be-
cause the transformer is designed for a special
application and the application of standards to
the transformer would not result in significant
energy savings.
‘‘(37) The term ‘standby mode’ means the lowest
amount of electric power used by a household appli-
ance when not performing its active functions, as de-
fined on an individual product basis by the Sec-
retary.
‘‘(38) The term ‘torchiere’ means a portable elec-
tric lamp with a reflector bowl that directs light up-
ward so as to give indirect illumination.
‘‘(39) The term ‘transformer’ means a device
consisting of two or more coils of insulated wire that
transfers alternating current by electromagnetic in-
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duction from one coil to another to change the origi-
nal voltage or current value.
‘‘(40) The term ‘unit heater’ means a self-con-
tained fan-type heater designed to be installed within
the heated space, except that such term does not in-
clude a warm air furnace.
‘‘(41) The term ‘traffic signal module’ means a
standard 8-inch (200mm) or 12-inch (300mm) traffic
signal indication, consisting of a light source, a lens,
and all other parts necessary for operation, that com-
municates movement messages to drivers through red,
amber, and green colors.’’.
SEC. 924. ADDITIONAL TEST PROCEDURES.
(a) EXIT SIGNS.—Section 323(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6293) is amended by add-
ing at the end the following:
‘‘(9) Test procedures for illuminated exit signs
shall be based on the test method used under the En-
ergy Star program of the Environmental Protection
Agency for illuminated exit signs, as in effect on the
date of enactment of this paragraph.
‘‘(10) Test procedures for low voltage dry-type
distribution transformers shall be based on the
‘Standard Test Method for Measuring the Energy
Consumption of Distribution Transformers’ pre-
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scribed by the National Electrical Manufacturers As-
sociation (NEMA TP 2–1998). The Secretary may re-
view and revise this test procedure based on future re-
visions to such standard test method.
‘‘(11) Test procedures for traffic signal modules
shall be based on the test method used under the En-
ergy Star program of the Environmental Protection
Agency for traffic signal modules, as in effect on the
date of enactment of this paragraph.’’.
(b) ADDITIONAL CONSUMER AND COMMERCIAL PROD-
UCTS.—Section 323 of the Energy Policy and Conservation
Act (42 U.S.C. 6293) is further amended by adding at the
end the following:
‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PROD-
UCTS.—The Secretary shall within 24 months after the date
of enactment of this subsection prescribe testing require-
ments for suspended ceiling fans, refrigerated bottled or
canned beverage vending machines, commercial unit heat-
ers, and commercial refrigerators, freezers and refrigerator-
freezers. Such testing requirements shall be based on exist-
ing test procedures used in industry to the extent practical
and reasonable. In the case of suspended ceiling fans, such
test procedures shall include efficiency at both maximum
output and at an output no more than 50 percent of the
maximum output.’’.
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SEC. 925. ENERGY LABELING.
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER
PRODUCT LABELING.—Paragraph (2) of section 324(a) of
the Energy Policy and Conservation Act (42 U.S.C.
6294(a)(2)) is amended by adding at the end the following:
‘‘(F) Not later than 3 months after the date
of enactment of this subparagraph, the Commis-
sion shall initiate a rulemaking to consider the
effectiveness of the current consumer products la-
beling program in assisting consumers in mak-
ing purchasing decisions and improving energy
efficiency and to consider changes to the labeling
rules that would improve the effectiveness of con-
sumer product labels. Such rulemaking shall be
completed within 15 months of the date of enact-
ment of this subparagraph.’’.
(b) RULEMAKING
ON LABELING
FOR ADDITIONAL
PRODUCTS.—Section 324(a) of the Energy Policy and Con-
servation Act (42 U.S.C. 6294(a)) is further amended by
adding at the end the following:
‘‘(5) The Secretary shall within 6 months after
the date on which energy conservation standards are
prescribed by the Secretary for covered products re-
ferred to in subsections (u) and (v) of section 325,
and within 18 months of enactment of this paragraph
for products referred to in subsections (w) through (y)
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of section 325, prescribe, by rule, labeling require-
ments for such products. Labeling requirements
adopted under this paragraph shall take effect on the
same date as the standards set pursuant to sections
325 (v) through (y).’’.
SEC. 926. ENERGY STAR PROGRAM.
The Energy Policy and Conservation Act (42 U.S.C.
6201 and following) is amended by inserting after section
324 the following:
‘‘ENERGY STAR PROGRAM
‘‘SEC. 324A. There is established at the Department
of Energy and the Environmental Protection Agency a pro-
gram to identify and promote energy-efficient products and
buildings in order to reduce energy consumption, improve
energy security, and reduce pollution through labeling of
products and buildings that meet the highest energy effi-
ciency standards. Responsibilities under the program shall
be divided between the Department of Energy and the Envi-
ronmental Protection Agency consistent with the terms of
agreements between the two agencies. The Administrator
and the Secretary shall—
‘‘(1) promote Energy Star compliant technologies
as the preferred technologies in the marketplace for
achieving energy efficiency and to reduce pollution;
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‘‘(2) work to enhance public awareness of the
Energy Star label, including special outreach to small
businesses;
‘‘(3) preserve the integrity of the Energy Star
label; and
‘‘(4) solicit the comments of interested parties in
establishing a new Energy Star product category or
in revising a product category, and upon adoption of
a new or revised product category provide an expla-
nation of the decision that responds to significant
public comments.’’.
SEC. 927. ENERGY CONSERVATION STANDARDS FOR CEN-
TRAL AIR CONDITIONERS AND HEAT PUMPS.
Section 325(d)(3) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6295(d)) is amended by adding at the
end the following:
‘‘(C) REVISION OF STANDARDS.—Not later
than 60 days after the date of enactment of this
subparagraph, the Secretary shall amend the
standards established under paragraph (1).’’.
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SEC. 928. ENERGY CONSERVATION STANDARDS FOR ADDI-
TIONAL CONSUMER AND COMMERCIAL PROD-
UCTS.
Section 325 of the Energy Policy and Conservation Act
(42 U.S.C. 6295) is amended by adding at the end the fol-
lowing:
‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION.—
‘‘(1) INITIAL RULEMAKING.—(A) The Secretary
shall, within 18 months after the date of enactment
of this subsection, prescribe by notice and comment,
definitions of standby mode and test procedures for
the standby mode power use of battery chargers and
external power supplies. In establishing these test pro-
cedures, the Secretary shall consider, among other fac-
tors, existing test procedures used for measuring en-
ergy consumption in standby mode and assess the
current and projected future market for battery char-
gers and external power supplies. This assessment
shall include estimates of the significance of potential
energy savings from technical improvements to these
products and suggested product classes for standards.
Prior to the end of this time period, the Secretary
shall hold a scoping workshop to discuss and receive
comments on plans for developing energy conservation
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standards for standby mode energy use for these prod-
ucts.
‘‘(B) The Secretary shall, within 3 years after
the date of enactment of this subsection, issue a final
rule that determines whether energy conservation
standards shall be promulgated for battery chargers
and external power supplies or classes thereof. For
each product class, any such standards shall be set at
the lowest level of standby energy use that—
‘‘(i) meets the criteria of subsections (o),
(p), (q), (r), (s) and (t); and
‘‘(ii) will result in significant overall an-
nual energy savings, considering both standby
mode and other operating modes.
‘‘(2) DESIGNATION
OF
ADDITIONAL
COVERED
PRODUCTS.—(A) Not later than 180 days after the
date of enactment of this subsection, the Secretary
shall publish for public comment and public hearing
a notice to determine whether any noncovered prod-
ucts should be designated as covered products for the
purpose of instituting a rulemaking under this section
to determine whether an energy conservation standard
restricting standby mode energy consumption, should
be promulgated; providing that any restriction on
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standby mode energy consumption shall be limited to
major sources of such consumption.
‘‘(B) In making the determinations pursuant to
subparagraph (A) of whether to designate new covered
products and institute rulemakings, the Secretary
shall, among other relevant factors and in addition to
the criteria in section 322(b), consider—
‘‘(i) standby mode power consumption com-
pared to overall product energy consumption;
and
‘‘(ii) the priority and energy savings poten-
tial of standards which may be promulgated
under this subsection compared to other required
rulemakings under this section and the available
resources of the Department to conduct such
rulemakings.
‘‘(C) Not later than 1 year after the date of en-
actment of this subsection, the Secretary shall issue a
determination of any new covered products for which
he intends to institute rulemakings on standby mode
pursuant to this section and he shall state the dates
by which he intends to initiate those rulemakings.
‘‘(3) REVIEW OF STANDBY ENERGY USE IN COV-
ERED PRODUCTS.—In determining pursuant to sec-
tion 323 whether test procedures and energy conserva-
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tion standards pursuant to section 325 should be re-
vised, the Secretary shall consider for covered prod-
ucts which are major sources of standby mode energy
consumption whether to incorporate standby mode
into such test procedures and energy conservation
standards, taking into account, among other relevant
factors, the criteria for non-covered products in sub-
paragraph (B) of this subsection.
‘‘(4) RULEMAKING
FOR
STANDBY
MODE.—(A)
Any rulemaking instituted under this subsection or
for covered products under this section which restricts
standby mode power consumption shall be subject to
the criteria and procedures for issuing energy con-
servation standards set forth in section 325 and the
criteria set forth in paragraph 2(B) of this subsection.
‘‘(B) No standard can be proposed for new cov-
ered products or covered products in a standby mode
unless the Secretary has promulgated applicable test
procedures for each product pursuant to section 323.
‘‘(C) The provisions of section 327 shall apply to
new covered products which are subject to the
rulemakings for standby mode after a final rule has
been issued.
‘‘(5) EFFECTIVE DATE.—Any standard promul-
gated under this subsection shall be applicable to
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products manufactured or imported 3 years after the
date of promulgation.
‘‘(6) VOLUNTARY PROGRAMS TO REDUCE STAND-
BY MODE ENERGY USE.—The Secretary and the Ad-
ministrator shall collaborate and develop programs,
including programs pursuant to section 324A and
other voluntary industry agreements or codes of con-
duct, which are designed to reduce standby mode en-
ergy use.
‘‘(v) SUSPENDED CEILING FANS, VENDING MACHINES,
UNIT
HEATERS, 
AND
COMMERCIAL
REFRIGERATORS,
FREEZERS
AND
REFRIGERATOR-FREEZERS.—The Sec-
retary shall within 24 months after the date on which test-
ing requirements are prescribed by the Secretary pursuant
to section 323(f), prescribe, by rule, energy conservation
standards for suspended ceiling fans, refrigerated bottled or
canned beverage vending machines, unit heaters, and com-
mercial refrigerators, freezers and refrigerator-freezers. In
establishing standards under this subsection, the Secretary
shall use the criteria and procedures contained in sub-
sections (l) and (m). Any standard prescribed under this
subsection shall apply to products manufactured 3 years
after the date of publication of a final rule establishing such
standard.
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‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit
signs manufactured on or after January 1, 2005 shall meet
the Energy Star Program performance requirements for il-
luminated exit signs prescribed by the Environmental Pro-
tection Agency as in effect on the date of enactment of this
subsection.
‘‘(x) TORCHIERES.—Torchieres manufactured on or
after January 1, 2005—
‘‘(1) shall consume not more than 190 watts of
power; and
‘‘(2) shall not be capable of operating with lamps
that total more than 190 watts.
‘‘(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS.—The
efficiency of low voltage dry-type transformers manufac-
tured on or after January 1, 2005 shall be the Class I Effi-
ciency Levels for low voltage dry-type transformers specified
in Table 4–2 of the ‘Guide for Determining Energy Effi-
ciency for Distribution Transformers’ published by the Na-
tional Electrical Manufacturers Association (NEMA TP–
1–1996).
‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal mod-
ules manufactured on or after January 1, 2006 shall meet
the performance requirements used under the Energy Star
program of the Environmental Protection Agency for traffic
signals, as in effect on the date of enactment of this para-
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graph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict moni-
toring systems.’’.
SEC. 929. CONSUMER EDUCATION ON ENERGY EFFICIENCY
BENEFITS OF AIR CONDITIONING, HEATING,
AND VENTILATION MAINTENANCE.
Section 337 of the Energy Policy and Conservation Act
(42 U.S.C. 6307) is amended by adding at the end the fol-
lowing:
‘‘(c) HVAC MAINTENANCE.—(1) For the purpose of en-
suring that installed air conditioning and heating systems
operate at their maximum rated efficiency levels, the Sec-
retary shall, within 180 days of the date of enactment of
this subsection, carry out a program to educate homeowners
and small business owners concerning the energy savings
resulting from properly conducted maintenance of air con-
ditioning, heating, and ventilating systems.
‘‘(2) The Secretary may carry out the program in co-
operation with industry trade associations, industry mem-
bers, and energy efficiency organizations.
‘‘(d) SMALL
BUSINESS
EDUCATION
AND
ASSIST-
ANCE.—The Administrator of the Small Business Adminis-
tration, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency,
shall develop and coordinate a Government-wide program,
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building on the existing Energy Star for Small Business
Program, to assist small business to become more energy
efficient, understand the cost savings obtainable through ef-
ficiencies, and identify financing options for energy effi-
ciency upgrades. The Secretary and the Administrator shall
make the program information available directly to small
businesses and through other Federal agencies, including the
Federal Emergency Management Agency, and the Depart-
ment of Agriculture.’’.
SEC. 930. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall contract with the Na-
tional Academy of Sciences for a study, to be completed
within 1 year of enactment of this Act, to examine whether
the goals of energy efficiency standards are best served by
measurement of energy consumed, and efficiency improve-
ments, at the actual site of energy consumption, or through
the full fuel cycle, beginning at the source of energy produc-
tion. The Secretary shall submit the report to the Congress.
Subtitle D—Housing Efficiency
SEC. 931. CAPACITY BUILDING FOR ENERGY EFFICIENT, AF-
FORDABLE HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended—
(1) in paragraph (1), by inserting before the
semicolon at the end the following: ‘‘, including capa-
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bilities regarding the provision of energy efficient, af-
fordable housing and residential energy conservation
measures’’; and
(2) in paragraph (2), by inserting before the
semicolon the following: ‘‘, including such activities
relating to the provision of energy efficient, affordable
housing and residential energy conservation measures
that benefit low-income families’’.
SEC. 932. INCREASE OF CDBG PUBLIC SERVICES CAP FOR
ENERGY CONSERVATION AND EFFICIENCY
ACTIVITIES.
Section 105(a)(8) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)(8)) is amended—
(1) by inserting ‘‘or efficiency’’ after ‘‘energy
conservation’’;
(2) by striking ‘‘, and except that’’ and inserting
‘‘; except that’’; and
(3) by inserting before the period at the end the
following: ‘‘; and except that each percentage limita-
tion under this paragraph on the amount of assist-
ance provided under this title that may be used for
the provision of public services is hereby increased by
10 percent, but such percentage increase may be used
only for the provision of public services concerning
energy conservation or efficiency’’.
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SEC. 933. FHA MORTGAGE INSURANCE INCENTIVES FOR EN-
ERGY EFFICIENT HOUSING.
(a) SINGLE FAMILY HOUSING MORTGAGE INSUR-
ANCE.—Section 203(b)(2) of the National Housing Act (12
U.S.C. 1709(b)(2)) is amended, in the first undesignated
paragraph beginning after subparagraph (B)(iii) (relating
to solar energy systems)—
(1) by inserting ‘‘or paragraph (10)’’; and
(2) by striking ‘‘20 percent’’ and inserting ‘‘30
percent’’.
(b) MULTIFAMILY HOUSING MORTGAGE INSURANCE.—
Section 207(c) of the National Housing Act (12 U.S.C.
1713(c)) is amended, in the second undesignated paragraph
beginning after paragraph (3) (relating to solar energy sys-
tems and residential energy conservation measures), by
striking ‘‘20 percent’’ and inserting ‘‘30 percent’’.
(c) COOPERATIVE HOUSING MORTGAGE INSURANCE.—
Section 213(p) of the National Housing Act (12 U.S.C.
1715e(p)) is amended by striking ‘‘20 per centum’’ and in-
serting ‘‘30 percent’’.
(d) REHABILITATION AND NEIGHBORHOOD CONSERVA-
TION
HOUSING
MORTGAGE
INSURANCE.—Section
220(d)(3)(B)(iii) of the National Housing Act (12 U.S.C.
1715k(d)(3)(B)(iii)) is amended by striking ‘‘20 per cen-
tum’’ and inserting ‘‘30 percent’’.
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(e) LOW-INCOME MULTIFAMILY HOUSING MORTGAGE
INSURANCE.—Section 221(k) of the National Housing Act
(12 U.S.C. 1715l(k)) is amended by striking ‘‘20 per cen-
tum’’ and inserting ‘‘30 percent’’.
(f) ELDERLY HOUSING MORTGAGE INSURANCE.—The
proviso at the end of section 213(c)(2) of the National Hous-
ing Act (12 U.S.C. 1715v(c)(2)) is amended by striking ‘‘20
per centum’’ and inserting ‘‘30 percent’’.
(g) CONDOMINIUM
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 234(j) of the National Housing Act (12
U.S.C. 1715y(j)) is amended by striking ‘‘20 per centum’’
and inserting ‘‘30 percent’’.
SEC. 934. PUBLIC HOUSING CAPITAL FUND.
Section 9(d)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437g(d)(1)) is amended—
(1) in subparagraph (I), by striking ‘‘and’’ at
the end;
(2) in subparagraph (K), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(L) improvement of energy and water-use
efficiency by installing fixtures and fittings that
conform to the American Society of Mechanical
Engineers/American National Standards Insti-
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tute standards A112.19.2–1998 and A112.18.1–
2000, or any revision thereto, applicable at the
time of installation, and by increasing energy ef-
ficiency and water conservation by such other
means as the Secretary determines are appro-
priate.’’.
SEC. 935. GRANTS FOR ENERGY-CONSERVING IMPROVE-
MENTS FOR ASSISTED HOUSING.
Section 251(b)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8231(1)) is amended—
(1) by striking ‘‘financed with loans’’ and insert-
ing ‘‘assisted’’;
(2) by inserting after ‘‘1959,’’ the following:
‘‘which are eligible multifamily housing projects (as
such term is defined in section 512 of the Multifamily
Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) and are subject to a
mortgage restructuring and rental assistance suffi-
ciency plans under such Act,’’; and
(3) by inserting after the period at the end of the
first sentence the following new sentence: ‘‘Such im-
provements may also include the installation of en-
ergy and water conserving fixtures and fittings that
conform to the American Society of Mechanical Engi-
neers/American National Standards Institute stand-
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ards A112.19.2–1998 and A112.18.1–2000, or any re-
vision thereto, applicable at the time of installation.’’.
SEC. 936. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American
Free Trade Agreement Implementation Act (22 U.S.C.
290m–290m–3) is amended by adding at the end the fol-
lowing:
‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
‘‘Consistent with the focus of the Bank’s Charter on
environmental infrastructure projects, the Board members
representing the United States should use their voice and
vote to encourage the Bank to finance projects related to
clean and efficient energy, including energy conservation,
that prevent, control, or reduce environmental pollutants or
contaminants.’’.
SEC. 937. CAPITAL FUND.
Section 9 of the United States Housing Act of 1937
(42 U.S.C. 1437g), as amended by section 934, is
amended—
(1) in subsection (d)(1)—
(A) in subparagraph (L), by striking the
period at the end and inserting ‘‘; and’’;
(B) by redesignating subparagraph (L) as
subparagraph (K); and
(C) by adding at the end the following:
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‘‘(L) integrated utility management
and capital planning to maximize energy
conservation and efficiency measures.’’; and
(2) in subsection (e)(2)(C)—
(A) by striking ‘‘The’’ and inserting the fol-
lowing:
‘‘(i) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(ii) THIRD PARTY CONTRACTS.—Con-
tracts described in clause (i) may include
contracts for equipment conversions to less
costly utility sources, projects with resident
paid utilities, adjustments to frozen base
year consumption, including systems re-
paired to meet applicable building and safe-
ty codes and adjustments for occupancy
rates increased by rehabilitation.
‘‘(iii) TERM OF CONTRACT.—The total
term of a contract described in clause (i)
shall be for not more than 20 years to allow
longer payback periods for retrofits, includ-
ing but not limited to windows, heating sys-
tem replacements, wall insulation, site-
based generations, and advanced energy
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savings technologies, including renewable
energy generation.’’.
SEC. 938. ENERGY-EFFICIENT APPLIANCES.
A public housing agency shall purchase energy-effi-
cient appliances that are Energy Star products as defined
in section 552 of the National Energy Policy and Conserva-
tion Act (as amended by this Act) when the purchase of
energy-efficient appliances is cost-effective to the public
housing agency.
SEC. 939. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12709) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘the date of the enact-
ment of the Energy Policy Act of 1992’’ and
inserting ‘‘September 30, 2002’’;
(ii) in subparagraph (A), by striking
‘‘and’’ at the end;
(iii) in subparagraph (B), by striking
the period at the end and inserting a semi-
colon; and
(iv) by adding at the end the following:
‘‘(C) rehabilitation and new construction of
public and assisted housing funded by HOPE VI
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revitalization grants, established under section
24 of the United States Housing Act of 1937 (42
U.S.C. 1437v), where such standards are deter-
mined to be cost effective by the Secretary of
Housing and Urban Development; and
(B) in paragraph (2), by striking ‘‘Council
of American’’ and all that follows through ‘‘life-
cycle cost basis’’ and inserting ‘‘2000 Inter-
national Energy Conservation Code’’;
(2) in subsection (b)—
(A) by striking ‘‘the date of the enactment
of the Energy Policy Act of 1992’’ and inserting
‘‘September 30, 2002’’; and
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2000
International Energy Conservation Code’’; and
(3) in subsection (c)—
(A) in the heading, by striking ‘‘MODEL
ENERGY CODE’’ and inserting ‘‘THE INTER-
NATIONAL ENERGY CONSERVATION CODE’’; and
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2000
International Energy Conservation Code’’.
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SEC. 940. ENERGY STRATEGY FOR HUD.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall develop and implement an inte-
grated strategy to reduce utility expenses through cost-effec-
tive energy conservation and efficiency measures, design
and construction in public and assisted housing.
(b) ENERGY MANAGEMENT OFFICE.—The Secretary of
Housing and Urban Development shall create an office at
the Department of Housing and Urban Development for
utility management, energy efficiency, and conservation,
with responsibility for implementing the strategy developed
under this section, including development of a centralized
database that monitors public housing energy usage, and
development of energy reduction goals and incentives for
public housing agencies. The Secretary shall submit an an-
nual report to Congress on the strategy.
Subtitle E—Rural and Remote
Communities
SEC. 941. SHORT TITLE.
This subtitle may be cited as the ‘‘Rural and Remote
Community Fairness Act’’.
SEC. 942. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) a modern infrastructure, including energy-ef-
ficient housing, electricity, telecommunications, bulk
fuel, wastewater and potable water service, is a nec-
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essary ingredient of a modern society and develop-
ment of a prosperous economy;
(2) the Nation’s rural and remote communities
face critical social, economic and environmental prob-
lems, arising in significant measure from the high
cost of infrastructure development in sparsely popu-
lated and remote areas, that are not adequately ad-
dressed by existing Federal assistance programs;
(3) in the past, Federal assistance has been in-
strumental in establishing electric and other utility
service in many developing regions of the Nation, and
that Federal assistance continues to be appropriate to
ensure that electric and other utility systems in rural
areas conform with modern standards of safety, reli-
ability, efficiency and environmental protection; and
(4) the future welfare of the Nation and the well-
being of its citizens depend on the establishment and
maintenance of viable rural and remote communities
as social, economic and political entities.
(b) PURPOSE.—The purpose of this subtitle is the de-
velopment and maintenance of viable rural and remote
communities through the provision of efficient housing, and
reasonably priced and environmentally sound energy,
water, wastewater, and bulk fuel, telecommunications and
utility services to those communities that do not have those
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services or who currently bear costs of those services that
are significantly above the national average.
SEC. 943. DEFINITIONS.
As used in this subtitle:
(1) The term ‘‘unit of general local government’’
means any city, county, town, township, parish, vil-
lage, borough (organized or unorganized) or other
general purpose political subdivision of a State,
Guam, the Commonwealth of the Northern Mariana
Islands, Puerto Rico, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, the Repub-
lic of Palau, the Virgin Islands, and American
Samoa, a combination of such political subdivisions
that is recognized by the Secretary; and the District
of Columbia; or any other appropriate organization
of citizens of a rural and remote community that the
Secretary may identify.
(2) The term ‘‘population’’ means total resident
population based on data compiled by the United
States Bureau of the Census and referable to the same
point or period in time.
(3) The term ‘‘Native American group’’ means
any Indian tribe, band, group, and nation, including
Alaska Indians, Aleuts, and Eskimos, and any Alas-
kan Native village, of the United States, which is con-
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sidered an eligible recipient under the Indian Self-De-
termination and Education Assistance Act (Public
Law 93–638) or was considered an eligible recipient
under chapter 67 of title 31, United States Code,
prior to the repeal of such chapter.
(4) The term ‘‘Secretary’’ means the Secretary of
Housing and Urban Development, the Secretary of
Agriculture, the Secretary of the Interior or the Sec-
retary of Energy, as appropriate.
(5) The term ‘‘rural and remote community’’
means a unit of local general government or Native
American group which is served by an electric utility
that has 10,000 or less customers with an average re-
tail cost per kilowatt hour of electricity that is equal
to or greater than 150 percent of the average retail
cost per kilowatt hour of electricity for all consumers
in the United States, as determined by data provided
by the Energy Information Administration of the De-
partment of Energy.
(6) The term ‘‘alternative energy sources’’ in-
clude nontraditional means of providing electrical en-
ergy, including, but not limited to, wind, solar, bio-
mass, municipal solid waste, hydroelectric, geothermal
and tidal power.
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(7) The term ‘‘average retail cost per kilowatt
hour of electricity’’ has the same meaning as ‘‘average
revenue per kilowatt hour of electricity’’ as defined by
the Energy Information Administration of the De-
partment of Energy.
SEC. 944. AUTHORIZATION OF APPROPRIATIONS.
The Secretary is authorized to make grants to rural
and remote communities to carry out activities in accord-
ance with the provisions of this subtitle. For purposes of
assistance under section 947, there are authorized to be ap-
propriated $100,000,000 for each of fiscal years 2003
through 2009.
SEC. 945. STATEMENT OF ACTIVITIES AND REVIEW.
(a) STATEMENT
OF OBJECTIVES
AND PROJECTED
USE.—Prior to the receipt in any fiscal year of a grant
under section 947 by any rural and remote community, the
grantee shall have prepared and submitted to the Secretary
of the agency providing funding a final statement of rural
and remote community development objectives and pro-
jected use of funds.
(b) PUBLIC NOTICE.—In order to permit public exam-
ination and appraisal of such statements, to enhance the
public accountability of grantees, and to facilitate coordina-
tion of activities with different levels of government, the
grantee shall in a timely manner—
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(1) furnish citizens information concerning the
amount of funds available for rural and remote com-
munity development activities and the range of ac-
tivities that may be undertaken;
(2) publish a proposed statement in such manner
to afford affected citizens an opportunity to examine
its content and to submit comments on the proposed
statement and on the community development per-
formance of the grantee;
(3) provide citizens with reasonable access to
records regarding the past use of funds received under
section 947 by the grantee; and
(4) provide citizens with reasonable notice of,
and opportunity to comment on, any substantial
change proposed to be made in the use of funds re-
ceived under section 947 from one eligible activity to
another.
The final statement shall be made available to the public,
and a copy shall be furnished to the appropriate Secretary.
Any final statement of activities may be modified or
amended from time to time by the grantee in accordance
with the same. Procedures required in this paragraph are
for the preparation and submission of such statement.
(c) PERFORMANCE AND EVALUATION REPORT.—Each
grantee shall submit to the appropriate Secretary, at a time
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determined by the Secretary, a performance and evaluation
report, concerning the use of funds made available under
section 947, together with an assessment by the grantee of
the relationship of such use to the objectives identified in
the grantee’s statement under subsection (a) and to the re-
quirements of subsection (b). The grantee’s report shall indi-
cate its programmatic accomplishments, the nature of and
reasons for any changes in the grantee’s program objectives,
and indications of how the grantee would change its pro-
grams as a result of its experiences.
(d) RETENTION OF INCOME.—
(1) IN GENERAL.—Any rural and remote com-
munity may retain any program income that is real-
ized from any grant made by the Secretary under sec-
tion 947 if—
(A) such income was realized after the ini-
tial disbursement of the funds received by such
unit of general local government under such sec-
tion; and
(B) such unit of general local government
has agreed that it will utilize the program in-
come for eligible rural and remote community
development activities in accordance with the
provisions of this title.
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(2) EXCEPTION.—The Secretary may, by regula-
tion, exclude from consideration as program income
any amounts determined to be so small that compli-
ance with the subsection creates an unreasonable ad-
ministrative burden on the rural and remote commu-
nity.
SEC. 946. ELIGIBLE ACTIVITIES.
(a) ACTIVITIES INCLUDED.—Eligible activities as-
sisted under this subtitle may include only—
(1) weatherization and other cost-effective en-
ergy-related repairs of homes and other buildings;
(2) the acquisition, construction, repair, recon-
struction, or installation of reliable and cost-efficient
facilities for the generation, transmission or distribu-
tion of electricity, and telecommunications, for con-
sumption in a rural and remote community or com-
munities;
(3) the acquisition, construction, repair, recon-
struction, remediation or installation of facilities for
the safe storage and efficient management of bulk fuel
by rural and remote communities, and facilities for
the distribution of such fuel to consumers in a rural
or remote community;
(4) facilities and training to reduce costs of
maintaining and operating generation, distribution
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or transmission systems to a rural and remote com-
munity or communities;
(5) the institution of professional management
and maintenance services for electricity generation,
transmission or distribution to a rural and remote
community or communities;
(6) the investigation of the feasibility of alternate
energy sources for a rural and remote community or
communities;
(7) acquisition, construction, repair, reconstruc-
tion, operation, maintenance, or installation of facili-
ties for water or wastewater service;
(8) the acquisition or disposition of real prop-
erty (including air rights, water rights, and other in-
terests therein) for eligible rural and remote commu-
nity development activities; and
(9) activities necessary to develop and implement
a comprehensive rural and remote development plan,
including payment of reasonable administrative costs
related to planning and execution of rural and remote
community development activities.
(b) ACTIVITIES UNDERTAKEN THROUGH ELECTRIC
UTILITIES.—Eligible activities may be undertaken either
directly by the rural and remote community, or by the rural
and remote community through local electric utilities.
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SEC. 947. ALLOCATION AND DISTRIBUTION OF FUNDS.
For each fiscal year, of the amount approved in an
appropriation Act under section 903 for grants in any year,
the Secretary shall distribute to each rural and remote com-
munity which has filed a final statement of rural and re-
mote community development objectives and projected use
of funds under section 945, an amount which shall be allo-
cated among the rural and remote communities that filed
a final statement of rural and remote community develop-
ment objectives and projected use of funds under section 945
proportionate to the percentage that the average retail price
per kilowatt hour of electricity for all classes of consumers
in the rural and remote community exceeds the national
average retail price per kilowatt hour for electricity for all
consumers in the United States, as determined by data pro-
vided by the Department of Energy’s Energy Information
Administration. In allocating funds under this section, the
Secretary shall give special consideration to those rural and
remote communities that increase economies of scale
through consolidation of services, affiliation and regional-
ization of eligible activities under this title.
SEC. 948. RURAL AND REMOTE COMMUNITY ELECTRIFICA-
TION GRANTS.
Section 313 of the Rural Electrification Act of 1936
(7 U.S.C. 940c) is amended by adding after subsection (b)
the following:
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‘‘(c) RURAL
AND
REMOTE
COMMUNITIES
ELEC-
TRIFICATION GRANTS.—The Secretary of Agriculture, in
consultation with the Secretary of Energy and the Secretary
of the Interior, may provide grants under this Act for the
purpose of increasing energy efficiency, siting or upgrading
transmission and distribution lines, or providing or mod-
ernizing electric facilities to—
‘‘(1) a unit of local government of a State or ter-
ritory; or
‘‘(2) an Indian tribe or Tribal College or Univer-
sity as defined in section 316(b)(3) of the Higher
Education Act (20 U.S.C. 1059c(b)(3)).
‘‘(d) GRANT CRITERIA.—The Secretary shall make
grants based on a determination of cost-effectiveness and
most effective use of the funds to achieve the stated purposes
of this section.
‘‘(e) PREFERENCE.—In making grants under this sec-
tion, the Secretary shall give a preference to renewable en-
ergy facilities.
‘‘(f) DEFINITION.—For purposes of this section, the
term ‘Indian tribe’ means any Indian tribe, band, nation,
or other organized group or community, including any
Alaska Native village or regional or village corporation as
defined in or established pursuant to the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.), which is
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recognized as eligible for the special programs and services
provided by the United States to Indians because of their
status as Indians.
‘‘(e) AUTHORIZATION.—For the purpose of carrying
out subsection (c), there are authorized to be appropriated
to the Secretary $20,000,000 for each of the 7 fiscal years
following the date of enactment of this subsection.’’.
SEC. 949. ADDITIONAL AUTHORIZATION OF APPROPRIA-
TIONS.
There is hereby authorized to be appropriated
$5,000,000 for each of fiscal years 2003 through 2009 to
the Denali Commission established by the Denali Commis-
sion Act of 1998 (42 U.S.C. 3121 note) for the purposes
of funding the power cost equalization program.
SEC. 950. RURAL RECOVERY COMMUNITY DEVELOPMENT
BLOCK GRANTS.
(a) FINDINGS; PURPOSE.—
(1) FINDINGS.—Congress finds that—
(A) a modern infrastructure, including af-
fordable housing, wastewater and water service,
and advanced technology capabilities is a nec-
essary ingredient of a modern society and devel-
opment of a prosperous economy with minimal
environmental impacts;
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(B) the Nation’s rural areas face critical so-
cial, economic, and environmental problems,
arising in significant measure from the growing
cost of infrastructure development in rural areas
that suffer from low per capita income and high
rates of outmigration and are not adequately ad-
dressed by existing Federal assistance programs;
and
(C) the future welfare of the Nation and the
well-being of its citizens depend on the establish-
ment and maintenance of viable rural areas as
social, economic, and political entities.
(2) PURPOSE.—The purpose of this section is to
provide for the development and maintenance of via-
ble rural areas through the provision of affordable
housing and community development assistance to el-
igible units of general local government and eligible
Native American groups in rural areas with exces-
sively high rates of outmigration and low per capita
income levels.
(b) DEFINITIONS.—In this section:
(1) ELIGIBLE UNIT OF GENERAL LOCAL GOVERN-
MENT.—The term ‘‘eligible unit of general local gov-
ernment’’ means a unit of general local government
that is the governing body of a rural recovery area.
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(2) ELIGIBLE INDIAN TRIBE.—The term ‘‘eligible
Indian tribe’’ means the governing body of an Indian
tribe that is located in a rural recovery area.
(3) GRANTEE.—The term ‘‘grantee’’ means an el-
igible unit of general local government or eligible In-
dian tribe that receives a grant under this section.
(4) NATIVE AMERICAN GROUP.—The term ‘‘Na-
tive American group’’ means any Indian tribe, band,
group, and nation, including Alaska Indians, Aleuts,
and Eskimos, and any Alaskan Native village, of the
United States, which is considered an eligible recipi-
ent under the Indian Self-Determination and Edu-
cation Assistance Act (Public Law 93–638) or was
considered an eligible recipient under chapter 67 of
title 31, United States Code, prior to the repeal of
such chapter.
(5) RURAL RECOVERY AREA.—The term ‘‘rural
recovery area’’ means any geographic area rep-
resented by a unit of general local government or a
Native American group—
(A) the borders of which are not adjacent to
a metropolitan area;
(B) in which—
(i) the population outmigration level
equals or exceeds 1 percent over the most re-
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cent 5 year period, as determined by the
Secretary of Housing and Urban Develop-
ment; and
(ii) the per capita income is less than
that of the national nonmetropolitan aver-
age; and
(C) that does not include a city with a pop-
ulation of more than 15,000.
(6) UNIT OF GENERAL LOCAL GOVERNMENT.—
(A) IN GENERAL.—The term ‘‘unit of gen-
eral local government’’ means any city, county,
town, township, parish, village, borough (orga-
nized or unorganized), or other general purpose
political subdivision of a State; Guam, the Com-
monwealth of the Northern Mariana Islands, the
Virgin Islands, Puerto Rico, and American
Samoa, or a general purpose political subdivi-
sion thereof; a combination of such political sub-
divisions that, except as provided in section
106(d)(4), is recognized by the Secretary; and the
District of Columbia.
(B) OTHER ENTITIES INCLUDED.—The term
also includes a State or a local public body or
agency, community association, or other entity,
that is approved by the Secretary for the purpose
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of providing public facilities or services to a new
community.
(7) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development,
the Secretary of Agriculture, the Secretary of the Inte-
rior or the Secretary of Energy, as appropriate.
(c) GRANT AUTHORITY.—The Secretary may make
grants in accordance with this section to eligible units of
general local government, Native American groups and eli-
gible Indian tribes that meet the requirements of subsection
(d) to carry out eligible activities described in subsection
(f).
(d) ELIGIBILITY REQUIREMENTS.—
(1) STATEMENT OF RURAL DEVELOPMENT OB-
JECTIVES.—In order to receive a grant under this sec-
tion for a fiscal year, an eligible unit of general local
government, Native American group or eligible In-
dian tribe—
(A) shall—
(i) publish a proposed statement of
rural development objectives and a descrip-
tion of the proposed eligible activities de-
scribed in subsection (f) for which the grant
will be used; and
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(ii) afford residents of the rural recov-
ery area served by the eligible unit of gen-
eral local government, Native American
groups or eligible Indian tribe with an op-
portunity to examine the contents of the
proposed statement and the proposed eligi-
ble activities published under clause (i), and
to submit comments to the eligible unit of
general local government, Native American
group or eligible Indian tribe, as applicable,
on the proposed statement and the proposed
eligible activities, and the overall commu-
nity development performance of the eligible
unit of general local government, Native
American groups or eligible Indian tribe, as
applicable; and
(B) based on any comments received under
subparagraph (A)(ii), prepare and submit to the
Secretary—
(i) a final statement of rural develop-
ment objectives;
(ii) a description of the eligible activi-
ties described in subsection (f) for which a
grant received under this section will be
used; and
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(iii) a certification that the eligible
unit of general local government, Native
American groups or eligible Indian tribe, as
applicable, will comply with the require-
ments of paragraph (2).
(2) PUBLIC NOTICE AND COMMENT.—In order to
enhance public accountability and facilitate the co-
ordination of activities among different levels of gov-
ernment, an eligible unit of general local government,
Native American groups or eligible Indian tribe that
receives a grant under this section shall, as soon as
practicable after such receipt, provide the residents of
the rural recovery area served by the eligible unit of
general local government, Native American groups or
eligible Indian tribe, as applicable, with—
(A) a copy of the final statement submitted
under paragraph (1)(B);
(B) information concerning the amount
made available under this section and the eligi-
ble activities to be undertaken with that amount;
(C) reasonable access to records regarding
the use of any amounts received by the eligible
unit of general local government, Native Amer-
ican groups or eligible Indian tribe under this
section in any preceding fiscal year; and
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(D) reasonable notice of, and opportunity to
comment on, any substantial change proposed to
be made in the use of amounts received under
this section from one eligible activity to another.
(e) DISTRIBUTION OF GRANTS.—
(1) IN GENERAL.—In each fiscal year, the Sec-
retary shall distribute to each eligible unit of general
local government, Native American groups and eligi-
ble Indian tribe that meets the requirements of sub-
section (d)(1) a grant in an amount described in
paragraph (2).
(2) AMOUNT.—Of the total amount made avail-
able to carry out this section in each fiscal year, the
Secretary shall distribute to each grantee the amount
equal to the greater of—
(A) the pro rata share of the grantee, as de-
termined by the Secretary, based on the com-
bined annual population outmigration level (as
determined by the Secretary of Housing and
Urban Development) and the per capita income
for the rural recovery area served by the grantee;
or
(B) $200,000.
(f) ELIGIBLE ACTIVITIES.—Each grantee shall use
amounts received under this section for one or more of the
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following eligible activities, which may be undertaken either
directly by the grantee, or by any local economic develop-
ment corporation, regional planning district, nonprofit
community development corporation, or statewide develop-
ment organization authorized by the grantee—
(1) the acquisition, construction, repair, recon-
struction, operation, maintenance, or installation of
facilities for water and wastewater service or any
other infrastructure needs determined to be critical to
the further development or improvement of a des-
ignated industrial park;
(2) the acquisition or disposition of real prop-
erty (including air rights, water rights, and other in-
terests therein) for rural community development ac-
tivities;
(3) the development of telecommunications infra-
structure within a designated industrial park that en-
courages high technology business development in
rural areas;
(4) activities necessary to develop and implement
a comprehensive rural development plan, including
payment of reasonable administrative costs related to
planning and execution of rural development activi-
ties; or
(5) affordable housing initiatives.
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(g) PERFORMANCE AND EVALUATION REPORT.—
(1) IN GENERAL.—Each grantee shall annually
submit to the appropriate Secretary a performance
and evaluation report, concerning the use of amounts
received under this section.
(2) CONTENTS.—Each report submitted under
paragraph (1) shall include a description of—
(A) the eligible activities carried out by the
grantee with amounts received under this section,
and the degree to which the grantee has achieved
the rural development objectives included in the
final statement submitted under subsection
(d)(1);
(B) the nature of and reasons for any
change in the rural development objectives or the
eligible activities of the grantee after submission
of the final statement under subsection (d)(1);
and
(C) any manner in which the grantee would
change the rural development objectives of the
grantee as a result of the experience of the grant-
ee in administering amounts received under this
section.
(h) RETENTION OF INCOME.—A grantee may retain
any income that is realized from the grant, if—
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(1) the income was realized after the initial dis-
bursement of amounts to the grantee under this sec-
tion; and
(2) the—
(A) grantee agrees to utilize the income for
one or more eligible activities; or
(B) amount of the income is determined by
the Secretary to be so small that compliance with
subparagraph (A) would create an unreasonable
administrative burden on the grantee.
(i) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$100,000,000 for each of fiscal years 2003 through 2009.
DIVISION D—INTEGRATION OF
ENERGY 
POLICY 
AND 
CLI-
MATE CHANGE POLICY
TITLE X—NATIONAL CLIMATE
CHANGE POLICY
Subtitle A—Sense of Congress
SEC. 1001. SENSE OF CONGRESS ON CLIMATE CHANGE.
(a) FINDINGS.—The Congress makes the following
findings:
(1) Evidence continues to build that increases in
atmospheric concentrations of man-made greenhouse
gases are contributing to global climate change.
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(2) The Intergovernmental Panel on Climate
Change (IPCC) has concluded that ‘‘there is new and
stronger evidence that most of the warming observed
over the last 50 years is attributable to human activi-
ties’’ and that the Earth’s average temperature can be
expected to rise between 2.5 and 10.4 degrees Fahr-
enheit in this century.
(3) The National Academy of Sciences confirmed
the findings of the IPCC, stating that ‘‘the IPCC’s
conclusion that most of the observed warming of the
last 50 years is likely to have been due to the increase
of greenhouse gas concentrations accurately reflects
the current thinking of the scientific community on
this issue’’ and that ‘‘there is general agreement that
the observed warming is real and particularly strong
within the past twenty years’’. The National Academy
of Sciences also noted that ‘‘because there is consider-
able uncertainty in current understanding of how the
climate system varies naturally and reacts to emis-
sions of greenhouse gases and aerosols, current esti-
mates of the magnitude of future warming should be
regarded as tentative and subject to future adjust-
ments upward or downward’’.
(4) The IPCC has stated that in the last 40
years, the global average sea level has risen, ocean
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heat content has increased, and snow cover and ice
extent have decreased, which threatens to inundate
low-lying island nations and coastal regions through-
out the world.
(5) In October 2000, a United States Govern-
ment report found that global climate change may
harm the United States by altering crop yields, accel-
erating sea-level rise, and increasing the spread of
tropical infectious diseases.
(6) In 1992, the United States ratified the
United Nations Framework Convention on Climate
Change (UNFCCC), the ultimate objective of which is
the ‘‘stabilization of greenhouse gas concentrations in
the atmosphere at a level that would prevent dan-
gerous anthropogenic interference with the climate
system. Such a level should be achieved within a
time-frame sufficient to allow ecosystems to adapt
naturally to climate change, to ensure that food pro-
duction is not threatened and to enable economic de-
velopment to proceed in a sustainable manner’’.
(7) The UNFCCC stated in part that the Parties
to the Convention are to implement policies ‘‘with the
aim of returning . . . to their 1990 levels anthropo-
genic emissions of carbon dioxide and other green-
house gases’’ under the principle that ‘‘policies and
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measures . . . should be appropriate for the specific
conditions of each Party and should be integrated
with national development programmes, taking into
account that economic development is essential for
adopting measures to address climate change’’.
(8) There is a shared international responsibility
to address this problem, as industrial nations are the
largest historic and current emitters of greenhouse
gases and developing nations’ emissions will signifi-
cantly increase in the future.
(9) The UNFCCC further stated that ‘‘developed
country Parties should take the lead in combating cli-
mate change and the adverse effects thereof’’, as these
nations are the largest historic and current emitters
of greenhouse gases. The UNFCCC also stated that
‘‘steps required to understand and address climate
change will be environmentally, socially and economi-
cally most effective if they are based on relevant sci-
entific, technical and economic considerations and
continually re-evaluated in the light of new findings
in these areas’’.
(10) Senate Resolution 98 of the One Hundred
Fifth Congress, which expressed that developing na-
tions must also be included in any future, binding
climate change treaty and such a treaty must not re-
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sult in serious harm to the United States economy,
should not cause the United States to abandon its
shared responsibility to help reduce the risks of cli-
mate change and its impacts. Future international ef-
forts in this regard should focus on recognizing the eq-
uitable responsibilities for addressing climate change
by all nations, including commitments by the largest
developing country emitters in a future, binding cli-
mate change treaty.
(11) It is the position of the United States that
it will not interfere with the plans of any nation that
chooses to ratify and implement the Kyoto Protocol to
the UNFCCC.
(12) American businesses need to know how gov-
ernments worldwide will address the risks of climate
change.
(13) The United States benefits from investments
in the research, development and deployment of a
range of clean energy and efficiency technologies that
can reduce the risks of climate change and its impacts
and that can make the United States economy more
productive, bolster energy security, create jobs, and
protect the environment.
(b) SENSE OF CONGRESS.—It is the sense of the United
States Congress that the United States should demonstrate
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international leadership and responsibility in reducing the
health, environmental, and economic risks posed by climate
change by—
(1) taking responsible action to ensure signifi-
cant and meaningful reductions in emissions of
greenhouse gases from all sectors;
(2) creating flexible international and domestic
mechanisms, including joint implementation, tech-
nology deployment, tradable credits for emissions re-
ductions and carbon sequestration projects that will
reduce, avoid, and sequester greenhouse gas emissions;
and
(3) participating in international negotiations,
including putting forth a proposal to the Conference
of the Parties, with the objective of securing United
States participation in a future binding climate
change Treaty in a manner that is consistent with the
environmental objectives of the UNFCCC, that pro-
tects the economic interests of the United States, and
recognizes the shared international responsibility for
addressing climate change, including developing coun-
try participation.
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Subtitle B—Climate Change
Strategy
SEC. 1011. SHORT TITLE.
This subtitle may be cited as the ‘‘Climate Change
Strategy and Technology Innovation Act of 2003’’.
SEC. 1012. DEFINITIONS.
In this subtitle:
(1) CLIMATE-FRIENDLY TECHNOLOGY.—The term
‘‘climate-friendly technology’’ means any energy sup-
ply or end-use technology that, over the life of the
technology and compared to similar technology in
commercial use as of the date of enactment of this
Act—
(A) results in reduced emissions of green-
house gases;
(B) may substantially lower emissions of
other pollutants; and
(C) may generate substantially smaller or
less hazardous quantities of solid or liquid waste.
(2) DEPARTMENT.—The term ‘‘Department’’
means the Department of Energy.
(3) DEPARTMENT OFFICE.—The term ‘‘Depart-
ment Office’’ means the Office of Climate Change
Technology of the Department established by section
1015(a).
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(4) FEDERAL AGENCY.—The term ‘‘Federal agen-
cy’’ has the meaning given the term ‘‘agency’’ in sec-
tion 551 of title 5, United States Code.
(5) GREENHOUSE GAS.—The term ‘‘greenhouse
gas’’ means—
(A) an anthropogenic gaseous constituent of
the atmosphere (including carbon dioxide, meth-
ane, 
nitrous 
oxide, 
chlorofluorocarbons,
hydrofluorocarbons, 
perfluorocarbons, 
sulfur
hexafluoride, and tropospheric ozone) that ab-
sorbs and re-emits infrared radiation and influ-
ences climate; and
(B) an anthropogenic aerosol (such as black
soot) that absorbs solar radiation and influences
climate.
(6) INTERAGENCY
TASK
FORCE.—The term
‘‘Interagency Task Force’’ means the Interagency
Task Force established under section 1014(e).
(7) KEY
ELEMENT.—The term ‘‘key element’’,
with respect to the Strategy, means—
(A) definition of interim emission mitiga-
tion levels, that, coupled with specific mitigation
approaches and after taking into account actions
by other nations (if any), would result in sta-
bilization of greenhouse gas concentrations;
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(B) technology development, including—
(i) a national commitment to double
energy research and development by the
United States public and private sectors;
and
(ii) in carrying out such research and
development, a national commitment to
provide a high degree of emphasis on bold,
breakthrough technologies that will make
possible a profound transformation of the
energy, transportation, industrial, agricul-
tural, and building sectors of the United
States;
(C) climate adaptation research that focuses
on actions necessary to adapt to climate
change—
(i) that may have already occurred; or
(ii) that may occur under future cli-
mate change scenarios;
(D) climate science research that—
(i) builds on the substantial scientific
understanding of climate change that exists
as of the date of enactment of this subtitle;
and
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(ii) focuses on reducing the remaining
scientific, technical, and economic uncer-
tainties to aid in the development of sound
response strategies.
(8) LONG-TERM GOAL OF THE STRATEGY.—The
term ‘‘long-term goal of the Strategy’’ means the long-
term goal in section 1013(a)(1).
(9) MITIGATION.—The term ‘‘mitigation’’ means
actions that reduce, avoid, or sequester greenhouse
gases.
(10) NATIONAL
ACADEMY
OF
SCIENCES.—The
term ‘‘National Academy of Sciences’’ means the Na-
tional Academy of Sciences, the National Academy of
Engineering, the Institute of Medicine, and the Na-
tional Research Council.
(11) QUALIFIED INDIVIDUAL.—
(A) IN GENERAL.—The term ‘‘qualified in-
dividual’’ means an individual who has dem-
onstrated expertise and leadership skills to draw
on other experts in diverse fields of knowledge
that are relevant to addressing the climate
change challenge.
(B) FIELDS OF KNOWLEDGE.—The fields of
knowledge referred to in subparagraph (A) are—
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(i) the science of climate change and
its impacts;
(ii) energy and environmental econom-
ics;
(iii) technology transfer and diffusion;
(iv) the social dimensions of climate
change;
(v) climate change adaptation strate-
gies;
(vi) fossil, nuclear, and renewable en-
ergy technology;
(vii) energy efficiency and energy con-
servation;
(viii) energy systems integration;
(ix) engineered and terrestrial carbon
sequestration;
(x) transportation, industrial, and
building sector concerns;
(xi) 
regulatory 
and 
market-based
mechanisms for addressing climate change;
(xii) risk and decision analysis;
(xiii) strategic planning; and
(xiv) the international implications of
climate change strategies.
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(12) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(13) STABILIZATION OF GREENHOUSE GAS CON-
CENTRATIONS.—The term ‘‘stabilization of greenhouse
gas concentrations’’ means the stabilization of green-
house gas concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic inter-
ference with the climate system, recognizing that such
a level should be achieved within a time frame suffi-
cient to allow ecosystems to adapt naturally to cli-
mate change, to ensure that food production is not
threatened and to enable economic development to
proceed in a sustainable manner, as contemplated by
the United Nations Framework Convention on Cli-
mate Change, done at New York on May 9, 1992.
(14) STRATEGY.—The term ‘‘Strategy’’ means
the National Climate Change Strategy developed
under section 1013.
(15) WHITE HOUSE OFFICE.—The term ‘‘White
House Office’’ means the Office of National Climate
Change Policy established by section 1014(a).
SEC. 1013. NATIONAL CLIMATE CHANGE STRATEGY.
(a) IN GENERAL.—The President, through the director
of the White House Office and in consultation with the
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Interagency Task Force, shall develop a National Climate
Change Strategy, which shall—
(1) have the long-term goal of stabilization of
greenhouse gas concentrations through actions taken
by the United States and other nations;
(2) recognize that accomplishing the long-term
goal of the Strategy will take from many decades to
more than a century, but acknowledging that signifi-
cant actions must begin in the near term;
(3) incorporate the four key elements;
(4) be developed on the basis of an examination
of a broad range of emissions levels and dates for
achievement of those levels (including those evaluated
by the Intergovernmental Panel on Climate Change
and those consistent with United States treaty com-
mitments) that, after taking into account actions by
other nations, would achieve the long-term goal of the
Strategy;
(5) consider the broad range of activities and ac-
tions that can be taken by United States entities to
reduce, avoid, or sequester greenhouse gas emissions
both within the United States and in other nations
through the use of market mechanisms, which may in-
clude, but not be limited to, mitigation activities, ter-
restrial sequestration, earning offsets through carbon
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capture or project-based activities, trading of emis-
sions credits in domestic and international markets,
and the application of the resulting credits from any
of the above within the United States;
(6) minimize any adverse short-term and long-
term social, economic, national security, and environ-
mental impacts, including ensuring that the strategy
is developed in an economically and environmentally
sound manner;
(7) incorporate mitigation approaches leading to
the development and deployment of advanced tech-
nologies and practices that will reduce, avoid, or se-
quester greenhouse gas emissions;
(8) be consistent with the goals of energy, trans-
portation, industrial, agricultural, forestry, environ-
mental, economic, and other relevant policies of the
United States;
(9) take into account—
(A) the diversity of energy sources and tech-
nologies;
(B) supply-side and demand-side solutions;
and
(C) national infrastructure, energy distribu-
tion, and transportation systems;
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(10) be based on an evaluation of a wide range
of approaches for achieving the long-term goal of the
Strategy, including evaluation of—
(A) a variety of cost-effective Federal and
State policies, programs, standards, and incen-
tives;
(B) policies that integrate and promote in-
novative, market-based solutions in the United
States and in foreign countries; and
(C) participation in other international in-
stitutions, or in the support of international ac-
tivities, that are established or conducted to
achieve the long-term goal of the Strategy;
(11) in the final recommendations of the
Strategy—
(A) emphasize policies and actions that
achieve the long-term goal of the Strategy; and
(B) 
provide 
specific 
recommendations
concerning—
(i) measures determined to be appro-
priate for short-term implementation, giv-
ing preference to cost-effective and techno-
logically feasible measures that will—
(I) produce measurable net reduc-
tions in United States emissions, com-
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pared to expected trends, that lead to-
ward achievement of the long-term goal
of the Strategy; and
(II) minimize any adverse short-
term and long-term economic, environ-
mental, national security, and social
impacts on the United States;
(ii) the development of technologies
that have the potential for long-term
implementation—
(I) giving preference to tech-
nologies that have the potential to re-
duce significantly the overall cost of
achieving the long-term goal of the
Strategy; and
(II) considering a full range of
energy sources, energy conversion and
use technologies, and efficiency options;
(iii) such changes in institutional and
technology systems are necessary to adapt to
climate change in the short-term and the
long-term;
(iv) such review, modification, and en-
hancement of the scientific, technical, and
economic research efforts of the United
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States, and improvements to the data re-
sulting from research, as are appropriate to
improve the accuracy of predictions con-
cerning climate change and the economic
and social costs and opportunities relating
to climate change; and
(v) changes that should be made to
project and grant evaluation criteria under
other Federal research and development pro-
grams so that those criteria do not inhibit
development of climate-friendly technologies;
(12) recognize that the Strategy is intended to
guide the Nation’s effort to address climate change,
but it shall not create a legal obligation on the part
of any person or entity other than the duties of the
Director of the White House Office and Interagency
Task Force in the development of the Strategy;
(13) have a scope that considers the totality of
United States public, private, and public-private sec-
tor actions that bear on the long-term goal;
(14) be developed in a manner that provides for
meaningful 
participation 
by, 
and 
consultation
among, Federal, State, tribal, and local government
agencies, nongovernmental organizations, academia,
scientific bodies, industry, the public, and other inter-
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ested 
parties 
in 
accordance 
with 
subsections
(b)(3)(C)(iv)(II) and (e)(3)(B)(ii) of section 1014;
(15) address how the United States should en-
gage State, tribal, and local governments in devel-
oping and carrying out a response to climate change;
(16) promote, to the maximum extent prac-
ticable, public awareness, outreach, and information-
sharing to further the understanding of the full range
of climate change-related issues;
(17) provide a detailed explanation of how the
measures recommended by the Strategy will ensure
that they do not result in serious harm to the econ-
omy of the United States;
(18) provide a detailed explanation of how the
measures recommended by the Strategy will achieve
its long-term goal;
(19) include any recommendations for legislative
and administrative actions necessary to implement
the Strategy;
(20) serve as a framework for climate change ac-
tions by all Federal agencies;
(21) recommend which Federal agencies are, or
should be, responsible for the various aspects of imple-
mentation of the Strategy and any budgetary impli-
cations;
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(22) address how the United States should en-
gage foreign governments in developing an inter-
national response to climate change; and
(23) incorporate initiatives to open markets and
promote the deployment of a range of climate-friendly
technologies developed in the United States and
abroad.
(b) SUBMISSION TO CONGRESS.—Not later than 1 year
after the date of enactment of this section, the President,
through the Interagency Task Force and the Director, shall
submit to Congress the Strategy, in the form of a report
that includes—
(1) a description of the Strategy and its goals,
including how the Strategy addresses each of the 4
key elements;
(2) an inventory and evaluation of Federal pro-
grams and activities intended to carry out the Strat-
egy;
(3) a description of how the Strategy will serve
as a framework of climate change response actions by
all Federal agencies, including a description of co-
ordination mechanisms and interagency activities;
(4) evidence that the Strategy is consistent with
other energy, transportation, industrial, agricultural,
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forestry, environmental, economic, and other relevant
policies of the United States;
(5) a description of provisions in the Strategy
that ensure that it minimizes any adverse short-term
and long-term social, economic, national security,
and environmental impacts, including ensuring that
the Strategy is developed in an economically and en-
vironmentally sound manner;
(6) evidence that the Strategy has been developed
in a manner that provides for participation by, and
consultation among, Federal, State, tribal, and local
government agencies, nongovernmental organizations,
academia, scientific bodies, industry, the public, and
other interested parties;
(7) a description of Federal activities that pro-
mote, to the maximum extent practicable, public
awareness, outreach, and information-sharing to fur-
ther the understanding of the full range of climate
change-related issues; and
(8) recommendations for legislative or adminis-
trative changes to Federal programs or activities im-
plemented to carry out this Strategy, in light of new
knowledge of climate change and its impacts and
costs or benefits, or technological capacity to improve
mitigation or adaption activities.
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(c) UPDATES.—Not later than 4 years after the date
of submission of the Strategy to Congress under subsection
(b), and at the end of each 4-year period thereafter, the
President shall submit to Congress an updated version of
the Strategy.
(d) PROGRESS REPORTS.—Not later than 1 year after
the date of submission of the Strategy to Congress under
subsection (b), and annually thereafter at the time that the
President submits to the Congress the budget of the United
States Government under section 1105 of title 31, United
States Code, the President shall submit to Congress a report
that—
(1) describes the Strategy, its goals, and the Fed-
eral programs and activities intended to carry out the
Strategy through technological, scientific, mitigation,
and adaptation activities;
(2) evaluates the Federal programs and activities
implemented as part of this Strategy against the
goals and implementation dates outlined in the Strat-
egy;
(3) assesses the progress in implementation of the
Strategy;
(4) incorporates the technology program reports
required pursuant to section 1015(a)(3) and sub-
sections (d) and (e) of section 1321;
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(5) describes any changes to Federal programs or
activities implemented to carry out this Strategy, in
light of new knowledge of climate change and its im-
pacts and costs or benefits, or technological capacity
to improve mitigation or adaptation activities;
(6) describes all Federal spending on climate
change for the current fiscal year and each of the 5
years previous; categorized by Federal agency and
program function (including scientific research, en-
ergy research and development, regulation, education,
and other activities);
(7) estimates the budgetary impact for the cur-
rent fiscal year and each of the 5 years previous of
any Federal tax credits, tax deductions or other in-
centives claimed by taxpayers that are directly or in-
directly attributable to greenhouse gas emissions re-
duction activities;
(8) estimates the amount, in metric tons, of net
greenhouse gas emissions reduced, avoided, or seques-
tered directly or indirectly as a result of the imple-
mentation of the Strategy;
(9) evaluates international research and develop-
ment and market-based activities and the mitigation
actions taken by the United States and other nations
to achieve the long-term goal of the Strategy; and
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(10) makes recommendations for legislative or
administrative actions or adjustments that will accel-
erate progress towards meeting the near-term and
long-term goals contained in the Strategy.
(e) NATIONAL ACADEMY OF SCIENCES REVIEW.—
(1) IN GENERAL.—Not later than 90 days after
the date of publication of the Strategy under sub-
section (b) and each update under subsection (c), the
Director of the National Science Foundation, on be-
half of the Director of the White House Office and the
Interagency Task Force, shall enter into appropriate
arrangements with the National Academy of Sciences
to conduct a review of the Strategy or update.
(2) CRITERIA.—The review by the National
Academy of Sciences shall evaluate the goals and rec-
ommendations contained in the Strategy or update,
taking into consideration—
(A) the adequacy of effort and the appro-
priateness of focus of the totality of all public,
private, and public-private sector actions of the
United States with respect to the Strategy, in-
cluding the four key elements;
(B) the adequacy of the budget and the effec-
tiveness with which each Federal agency is car-
rying out its responsibilities;
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(C) current scientific knowledge regarding
climate change and its impacts;
(D) current understanding of human social
and economic responses to climate change, and
responses of natural ecosystems to climate
change;
(E) advancements in energy technologies
that reduce, avoid, or sequester greenhouse gases
or otherwise mitigate the risks of climate change;
(F) current understanding of economic costs
and benefits of mitigation or adaptation activi-
ties;
(G) the existence of alternative policy op-
tions that could achieve the Strategy goals at
lower economic, environmental, or social cost;
and
(H) international activities and the actions
taken by the United States and other nations to
achieve the long-term goal of the Strategy.
(3) REPORT.—Not later than 1 year after the
date of submittal to the Congress of the Strategy or
update, as appropriate, the National Academy of
Sciences shall prepare and submit to the Congress
and the President a report concerning the results of
its review, along with any recommendations as ap-
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propriate. Such report shall also be made available to
the public.
(4) AUTHORIZATION OF APPROPRIATIONS.—For
the purposes of this subsection, there are authorized to
be appropriated to the National Science Foundation
such sums as may be necessary.
SEC. 1014. OFFICE OF NATIONAL CLIMATE CHANGE POLICY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established, within
the Executive Office of the President, the Office of Na-
tional Climate Change Policy.
(2) FOCUS.—The White House Office shall have
the focus of achieving the long-term goal of the Strat-
egy while minimizing adverse short-term and long-
term economic and social impacts.
(3) DUTIES.—Consistent with paragraph (2), the
White House Office shall—
(A) establish policies, objectives, and prior-
ities for the Strategy;
(B) in accordance with subsection (d), es-
tablish the Interagency Task Force to serve as the
primary mechanism through which the heads of
Federal agencies shall assist the Director of the
White House Office in developing and imple-
menting the Strategy;
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(C) to the maximum extent practicable, en-
sure that the Strategy is based on objective,
quantitative analysis, drawing on the analytical
capabilities of Federal and State agencies, espe-
cially the Department Office;
(D) advise the President concerning nec-
essary changes in organization, management,
budgeting, and personnel allocation of Federal
agencies involved in climate change response ac-
tivities; and
(E) advise the President and notify a Fed-
eral agency if the policies and discretionary pro-
grams of the agency are not well aligned with,
or are not contributing effectively to, the long-
term goal of the Strategy.
(b) DIRECTOR OF THE WHITE HOUSE OFFICE.—
(1) IN GENERAL.—The White House Office shall
be headed by a Director, who shall report directly to
the President, and shall consult with the appropriate
economic, environmental, national security, domestic
policy, science and technology and other offices with
the Executive Office of the President.
(2) APPOINTMENT.—The Director of the White
House Office shall be a qualified individual ap-
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pointed by the President, by and with the advice and
consent of the Senate.
(3) DUTIES OF THE DIRECTOR OF THE WHITE
HOUSE OFFICE.—
(A) STRATEGY.—In accordance with section
1013, the Director of the White House Office
shall coordinate the development and updating of
the Strategy.
(B) INTERAGENCY TASK FORCE.—The Di-
rector of the White House Office shall serve as
Chair of the Interagency Task Force.
(C) ADVISORY DUTIES.—
(i) 
ENERGY, 
ECONOMIC, 
ENVIRON-
MENTAL, 
TRANSPORTATION, 
INDUSTRIAL,
AGRICULTURAL, BUILDING, FORESTRY, AND
OTHER
PROGRAMS.—The Director of the
White House Office, using an integrated
perspective considering the totality of ac-
tions in the United States, shall advise the
President and the heads of Federal agencies
on—
(I) the extent to which United
States 
energy, 
economic, 
environ-
mental, transportation, industrial, ag-
ricultural, forestry, building, and other
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relevant programs are capable of pro-
ducing progress on the long-term goal
of the Strategy; and
(II) the extent to which proposed
or newly created energy, economic, en-
vironmental, 
transportation, 
indus-
trial, agricultural, forestry, building,
and other relevant programs positively
or negatively affect the ability of the
United States to achieve the long-term
goal of the Strategy.
(ii) TAX, TRADE, AND FOREIGN POLI-
CIES.—The Director of the White House Of-
fice, using an integrated perspective consid-
ering the totality of actions in the United
States, shall advise the President and the
heads of Federal agencies on—
(I) the extent to which the United
States tax policy, trade policy, and
foreign policy are capable of producing
progress on the long-term goal of the
Strategy; and
(II) the extent to which proposed
or newly created tax policy, trade pol-
icy, and foreign policy positively or
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negatively affect the ability of the
United States to achieve the long-term
goal of the Strategy.
(iii) INTERNATIONAL
TREATIES.—The
Secretary of State, acting in conjunction
with the Interagency Task Force and using
the analytical tools available to the White
House Office, shall provide to the Director
of the White House Office an opinion that—
(I) specifies, to the maximum ex-
tent practicable, the economic and en-
vironmental costs and benefits of any
proposed international treaties or com-
ponents of treaties that have an influ-
ence on greenhouse gas management;
and
(II) assesses the extent to which
the treaties advance the long-term goal
of the Strategy, while minimizing ad-
verse short-term and long-term eco-
nomic and social impacts and consid-
ering other impacts.
(iv) CONSULTATION.—
(I) WITH
MEMBERS
OF
INTER-
AGENCY TASK FORCE.—To the extent
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practicable and appropriate, the Direc-
tor of the White House Office shall con-
sult with all members of the Inter-
agency Task Force before providing ad-
vice to the President.
(II) WITH
OTHER
INTERESTED
PARTIES.—The Director of the White
House Office shall establish a process
for obtaining the meaningful partici-
pation of Federal, State, tribal, and
local government agencies, nongovern-
mental organizations, academia, sci-
entific bodies, industry, the public, and
other interested parties in the develop-
ment and updating of the Strategy.
(D) PUBLIC EDUCATION, AWARENESS, OUT-
REACH, AND
INFORMATION-SHARING.—The Di-
rector of the White House Office, to the max-
imum extent practicable, shall promote public
awareness, outreach, and information-sharing to
further the understanding of the full range of cli-
mate change-related issues.
(4) ANNUAL
REPORTS.—The Director of the
White House Office, in consultation with the Inter-
agency Task Force and other interested parties, shall
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prepare the annual reports for submission by the
President to Congress under section 1013(d).
(5) ANALYSIS.—During development of the
Strategy, preparation of the annual reports submitted
under paragraph (4), and provision of advice to the
President and the heads of Federal agencies, the Di-
rector of the White House Office shall place signifi-
cant emphasis on the use of objective, quantitative
analysis, taking into consideration any uncertainties
associated with the analysis.
(c) STAFF.—
(1) IN
GENERAL.—The Director of the White
House Office shall employ a professional staff, includ-
ing the staff appointed under paragraph (2), of not
more than 25 individuals to carry out the duties of
the White House Office.
(2) INTERGOVERNMENTAL PERSONNEL AND FEL-
LOWSHIPS.—The Director of the White House Office
may use the authority provided by the Intergovern-
mental Personnel Act of 1970 (42 U.S.C. 4701 et seq.)
and subchapter VI of chapter 33 of title 5, United
States Code, and fellowships, to obtain staff from Fed-
eral agencies, academia, scientific bodies, or a Na-
tional Laboratory (as that term is defined in section
1203), for appointments of a limited term.
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(d) AUTHORIZATION OF APPROPRIATIONS.—
(1) USE OF AVAILABLE APPROPRIATIONS.—From
funds made available to Federal agencies for the fiscal
year in which this title is enacted, the President shall
provide such sums as are necessary to carry out the
duties of the White House Office under this title until
the date on which funds are made available under
paragraph (2).
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Execu-
tive Office of the President to carry out the duties of
the White House Office under this subtitle, $5,000,000
for each of fiscal years 2003 through 2011, to remain
available through September 30, 2011.
(e) INTERAGENCY TASK FORCE.—
(1) IN
GENERAL.—The Director of the White
House Office shall establish the Interagency Task
Force.
(2) COMPOSITION.—The Interagency Task Force
shall be composed of—
(A) the Director of the White House Office,
who shall serve as Chair;
(B) the Secretary of State;
(C) the Secretary of Energy;
(D) the Secretary of Commerce;
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(E) the Secretary of Transportation;
(F) the Secretary of Agriculture;
(G) the Administrator of the Environmental
Protection Agency;
(H) the Chairman of the Council of Eco-
nomic Advisers;
(I) the Chairman of the Council on Envi-
ronmental Quality;
(J) the Director of the Office of Science and
Technology Policy;
(K) the Director of the Office of Manage-
ment and Budget; and
(L) the heads of such other Federal agencies
as the President considers appropriate.
(3) STRATEGY.—
(A) IN
GENERAL.—The Interagency Task
Force shall serve as the primary forum through
which the Federal agencies represented on the
Interagency Task Force jointly assist the Direc-
tor of the White House Office in—
(i) developing and updating the Strat-
egy; and
(ii) preparing annual reports under
section 1013(d).
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(B) REQUIRED
ELEMENTS.—In carrying
out subparagraph (A), the Interagency Task
Force shall—
(i) take into account the long-term goal
and other requirements of the Strategy spec-
ified in section 1013(a);
(ii) consult with State, tribal, and
local government agencies, nongovernmental
organizations, academia, scientific bodies,
industry, the public, and other interested
parties; and
(iii) build consensus around a Strategy
that is based on strong scientific, technical,
and economic analyses.
(4) WORKING GROUPS.—The Chair, in consulta-
tion with the members of the Interagency Task Force,
may establish such topical working groups as are nec-
essary to carry out the duties of the Interagency Task
Force and implement the Strategy, taking into con-
sideration the key elements of the Strategy. Such
working groups may be comprised of members of the
Interagency Task Force or their designees.
(f) STAFF.—In accordance with procedures established
by the Chair of the Interagency Task Force, the Federal
agencies represented on the Interagency Task Force shall
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provide staff from the agencies to support information, data
collection, and analyses required by the Interagency Task
Force.
(g) HEARINGS.—Upon request of the Chair, the Inter-
agency Task Force may hold such hearings, meet and act
at such times and places, take such testimony, and receive
such evidence as the Interagency Task Force considers to
be appropriate.
SEC. 1015. OFFICE OF CLIMATE CHANGE TECHNOLOGY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established, within
the Department, the Office of Climate Change Tech-
nology.
(2) DUTIES.—The Department Office shall—
(A) manage an energy technology research
and development program that directly supports
the Strategy by—
(i) focusing on high-risk, bold, break-
through technologies that—
(I) have significant promise of
contributing to the long-term goal of
the Strategy by—
(aa) mitigating the emissions
of greenhouse gases;
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(bb) removing and seques-
tering greenhouse gases from emis-
sion streams; or
(cc) removing and seques-
tering greenhouse gases from the
atmosphere;
(II) are not being addressed sig-
nificantly by other Federal programs;
and
(III) would represent a substan-
tial advance beyond technology avail-
able on the date of enactment of this
subtitle;
(ii) forging fundamentally new re-
search and development partnerships among
various Department, other Federal, and
State programs, particularly between basic
science and energy technology programs, in
cases in which such partnerships have sig-
nificant potential to affect the ability of the
United States to achieve the long-term goal
of the Strategy at the lowest possible cost;
(iii) forging international research and
development partnerships that are in the
interests of the United States and make
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progress on achieving the long-term goal of
the Strategy;
(iv) making available, through moni-
toring, experimentation, and analysis, data
that are essential to proving the technical
and economic viability of technology central
to addressing climate change; and
(v) transferring research and develop-
ment programs to other program offices of
the Department once such a research and
development program crosses the threshold
of high-risk research and moves into the
realm of more conventional technology de-
velopment;
(B) through active participation in the
Interagency Task Force and utilization of the
analytical capabilities of the Department Office,
share analyses of alternative climate change
strategies with other agencies represented on the
Interagency Task Force to assist them in
understanding—
(i) the scale of the climate change chal-
lenge; and
(ii) how actions of the Federal agencies
on the Interagency Task Force positively or
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negatively contribute to climate change so-
lutions;
(C) provide analytical support to the White
House Office, particularly in support of the de-
velopment of the Strategy and associated
progress reporting;
(D) foster the development of tools, data,
and capabilities to ensure that—
(i) the United States has a robust ca-
pability for evaluating alternative climate
change response scenarios; and
(ii) the Department Office provides
long-term analytical continuity during the
terms of service of successive Presidents;
(E) identify the total contribution of all De-
partment programs to the Strategy; and
(F) advise the Secretary on all aspects of
climate change-related issues, including nec-
essary changes in Department organization,
management, budgeting, and personnel alloca-
tion in the programs involved in climate change
response-related activities.
(3) ANNUAL REPORTS.—The Department Office
shall prepare an annual report for submission by the
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Secretary to Congress and the White House Office
that—
(A) assesses progress toward meeting the
goals of the energy technology research and devel-
opment program described in this section;
(B) assesses the activities of the Department
Office;
(C) assesses the contributions of all energy
technology research and development programs of
the Department (including science programs) to
the long-term goal and other requirements of the
Strategy; and
(D) make recommendations for actions by
the Department and other Federal agencies to
address the components of technology develop-
ment that are necessary to support the Strategy.
(b) DIRECTOR OF THE DEPARTMENT OFFICE.—
(1) IN GENERAL.—The Department Office shall
be headed by a Director, who shall be a qualified in-
dividual appointed by the President, and who shall be
compensated at a rate provided for level IV of the Ex-
ecutive Schedule under section 5315 of title 5, United
States Code.
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(2) REPORTING.—The Director of the Depart-
ment Office shall report directly to the Under Sec-
retary for Energy and Science.
(3) VACANCIES.—A vacancy in the position of
the Director of the Department Office shall be filled
in the same manner as the original appointment was
made.
(c) INTERGOVERNMENTAL PERSONNEL.—The Depart-
ment Office may use the authority provided by the Intergov-
ernmental Personnel Act of 1970 (42 U.S.C. 4701 et seq.),
subchapter VI of chapter 33 of title 5, United States Code,
and other departmental personnel authorities, to obtain
staff for appointments of a limited term.
(d) RELATIONSHIP
TO OTHER DEPARTMENT PRO-
GRAMS.—Each project carried out by the Department Office
shall be—
(1) initiated only after consultation with one or
more other appropriate program offices of the Depart-
ment that support research and development in the
areas relating to the project;
(2) managed by the Department Office; and
(3) in the case of a project that reaches a suffi-
cient level of maturity, with the concurrence of the
Department Office and the appropriate office de-
scribed in paragraph (1), transferred to the appro-
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priate office, along with the funds necessary to con-
tinue the project to the point at which non-Federal
funding can provide substantial support for the
project.
(e) COLLABORATION AND COST SHARING.—
(1) WITH OTHER FEDERAL AGENCIES.—Projects
supported by the Department Office may include par-
ticipation of, and be supported by, other Federal
agencies that have a role in the development, commer-
cialization, or transfer of energy, transportation, in-
dustrial, agricultural, forestry, or other climate
change-related technology.
(2) WITH THE PRIVATE SECTOR.—
(A) IN GENERAL.—Notwithstanding section
1403, the Department Office shall create an oper-
ating model that allows for collaboration, divi-
sion of effort, and cost sharing with industry on
individual climate change response projects.
(B) REQUIREMENTS.—Although cost shar-
ing in some cases may be appropriate, the De-
partment Office shall focus on long-term high-
risk research and development and should not
make industrial partnerships or cost sharing a
requirement, if such a requirement would bias
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the activities of the Department Office toward
incremental innovations.
(C) REEVALUATION ON TRANSFER.—At such
time as any bold, breakthrough research and de-
velopment program reaches a sufficient level of
technological maturity such that the program is
transferred to a program office of the Depart-
ment other than the Department Office, the cost-
sharing requirements and criteria applicable to
the program shall be reevaluated.
(D) PUBLICATION IN FEDERAL REGISTER.—
Each cost-sharing agreement entered into under
this paragraph shall be published in the Federal
Register.
(f) ANALYSIS OF CLIMATE CHANGE STRATEGY.—
(1) IN GENERAL.—The Department Office shall
foster the development and application of advanced
computational tools, data, and capabilities that, to-
gether with the capabilities of other Federal agencies,
support integrated assessment of alternative climate
change response scenarios and implementation of the
Strategy.
(2) PROGRAMS.—
(A) IN GENERAL.—The Department Office
shall—
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(i) develop and maintain core analyt-
ical competencies and complex, integrated
computational modeling capabilities that,
together with the capabilities of other Fed-
eral agencies, are necessary to support the
design and implementation of the Strategy;
and
(ii) track United States and inter-
national progress toward the long-term goal
of the Strategy.
(B) INTERNATIONAL CARBON DIOXIDE SE-
QUESTRATION
MONITORING
AND
DATA
PRO-
GRAM.—In consultation with Federal, State,
academic, scientific, private sector, nongovern-
mental, tribal, and international carbon capture
and sequestration technology programs, the De-
partment Office shall design and carry out an
international carbon dioxide sequestration moni-
toring and data program to collect, analyze, and
make available the technical and economic data
to ascertain—
(i) whether engineered sequestration
and terrestrial sequestration will be accept-
able technologies from regulatory, economic,
and international perspectives;
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(ii) whether carbon dioxide sequestered
in geological formations or ocean systems is
stable and has inconsequential leakage rates
on a geologic time-scale; and
(iii) the extent to which forest, agricul-
tural, and other terrestrial systems are suit-
able carbon sinks.
(3) AREAS OF EXPERTISE.—
(A) IN GENERAL.—The Department Office
shall develop and maintain expertise in inte-
grated assessment, modeling, and related capa-
bilities necessary—
(i) to understand the relationship be-
tween natural, agricultural, industrial, en-
ergy, and economic systems;
(ii) to design effective research and de-
velopment programs; and
(iii) to assist with the development and
implementation of the Strategy.
(B) TECHNOLOGY
TRANSFER
AND
DIFFU-
SION.—The expertise described in clause (i) shall
include knowledge of technology transfer and
technology diffusion in United States and for-
eign markets.
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(4) DISSEMINATION OF INFORMATION.—The De-
partment Office shall ensure, to the maximum extent
practicable, that technical and scientific knowledge re-
lating to greenhouse gas emission reduction, avoid-
ance, and sequestration is broadly disseminated
through publications, fellowships, and training pro-
grams.
(5) ASSESSMENTS.—In a manner consistent
with the Strategy, the Department shall conduct as-
sessments of deployment of climate-friendly tech-
nology.
(6) ANALYSIS.—During development of the
Strategy, annual reports submitted under subsection
(a)(3), and advice to the Secretary, the Director of the
Department Office shall place significant emphasis on
the use of objective, quantitative analysis, taking into
consideration any associated uncertainties.
(g) AUTHORIZATION OF APPROPRIATIONS.—
(1) USE OF AVAILABLE APPROPRIATIONS.—From
funds made available to Federal agencies for the fiscal
year in which this subtitle is enacted, the President
shall provide such sums as are necessary to carry out
the duties of the Department Office under this subtitle
until the date on which funds are made available
under paragraph (2).
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(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Sec-
retary, to carry out the duties of the Department Of-
fice under this subtitle, $4,750,000,000 for the period
of fiscal years 2003 through 2011, to remain available
through September 30, 2011.
(3) ADDITONAL AMOUNTS.—Amounts authorized
to be appropriated under this section shall be in addi-
tion to—
(A) amounts made available to carry out
the United States Global Change Research Pro-
gram under the Global Change Research Act of
1990 (15 U.S.C. 2921 et seq.); and
(B) amounts made available under other
provisions of law for energy research and devel-
opment.
SEC. 1016. ADDITIONAL OFFICES AND ACTIVITIES.
The Secretary of Agriculture, the Secretary of Trans-
portation, the Secretary of Commerce, the Administrator of
the Environmental Protection Agency, and the heads of
other Federal agencies may establish such offices and carry
out such activities, in addition to those established or au-
thorized by this Act, as are necessary to carry out this Act.
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Subtitle C—Science and Technology
Policy
SEC. 1021. GLOBAL CLIMATE CHANGE IN THE OFFICE OF
SCIENCE AND TECHNOLOGY POLICY.
Section 101(b) of the National Science and Technology
Policy, Organization, and Priorities Act of 1976 (42 U.S.C.
6601(b)) is amended—
(1) by redesignating paragraphs (7) through (13)
as paragraphs (8) through (14), respectively; and
(2) by inserting after paragraph (6) the fol-
lowing:
‘‘(7) improving efforts to understand, assess, pre-
dict, mitigate, and respond to global climate change;’’.
SEC. 1022. DIRECTOR OF OFFICE OF SCIENCE AND TECH-
NOLOGY POLICY FUNCTIONS.
(a) 
ADVISE
PRESIDENT
ON
GLOBAL
CLIMATE
CHANGE.—Section 204(b)(1) of the National Science and
Technology Policy, Organization, and Priorities Act of
1976 (42 U.S.C. 6613(b)(1)) is amended by inserting ‘‘glob-
al climate change,’’ after ‘‘to,’’.
(b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLI-
MATE CHANGE POLICY.—Section 207 of that Act (42 U.S.C.
6616) is amended—
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
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(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLI-
MATE CHANGE POLICY.—In carrying out this Act, the Di-
rector shall advise the Director of the Office of National Cli-
mate Change Policy on matters concerning science and tech-
nology as they relate to global climate change.’’.
Subtitle D—Miscellaneous
Provisions
SEC. 1031. ADDITIONAL INFORMATION FOR REGULATORY
REVIEW.
In each case that an agency prepares and submits a
Statement of Energy Effects pursuant to Executive Order
13211 of May 18, 2001 (relating to actions concerning regu-
lations that significantly affect energy supply, distribution,
or use), the agency shall also submit an estimate of the
change in net annual greenhouse gas emissions resulting
from the proposed significant energy action and any rea-
sonable alternatives to the action.
SEC. 1032. GREENHOUSE GAS EMISSIONS FROM FEDERAL
FACILITIES.
(a) METHODOLOGY.—Not later than 1 year after the
date of enactment of this section, the Secretary of Energy,
Secretary of Agriculture, Secretary of Commerce, and Ad-
ministrator of the Environmental Protection Agency shall
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publish a jointly developed methodology for preparing esti-
mates of annual net greenhouse gas emissions from all fed-
erally owned, leased, or operated facilities and emission
sources, including stationary, mobile, and indirect emis-
sions as may be determined to be feasible.
(b) PUBLICATION.—Not later than 18 months after the
date of enactment of this section, and annually thereafter,
the Secretary of Energy shall publish an estimate of annual
net greenhouse gas emissions from all federally owned,
leased, or operated facilities and emission sources, using the
methodology published under subsection (a).
TITLE XI—NATIONAL
GREENHOUSE GAS DATABASE
SEC. 1101. PURPOSE.
The purpose of this title is to establish a greenhouse
gas inventory, reductions registry, and information system
that—
(1) are complete, consistent, transparent, and ac-
curate;
(2) will create reliable and accurate data that
can be used by public and private entities to design
efficient and effective greenhouse gas emission reduc-
tion strategies; and
(3) will acknowledge and encourage greenhouse
gas emission reductions.
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SEC. 1102. DEFINITIONS.
In this title:
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) BASELINE.—The term ‘‘baseline’’ means the
historic greenhouse gas emission levels of an entity, as
adjusted upward by the designated agency to reflect
actual reductions that are verified in accordance
with—
(A) regulations promulgated under section
1104(c)(1); and
(B) relevant standards and methods devel-
oped under this title.
(3) DATABASE.—The term ‘‘database’’ means the
National Greenhouse Gas Database established under
section 1104.
(4) DESIGNATED
AGENCY.—The term ‘‘des-
ignated agency’’ means a department or agency to
which responsibility for a function or program is as-
signed under the memorandum of agreement entered
into under section 1103(a).
(5) DIRECT EMISSIONS.—The term ‘‘direct emis-
sions’’ means greenhouse gas emissions by an entity
from a facility that is owned or controlled by that en-
tity.
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(6) ENTITY.—The term ‘‘entity’’ means—
(A) a person located in the United States;
or
(B) a public or private entity, to the extent
that the entity operates in the United States.
(7) FACILITY.—The term ‘‘facility’’ means—
(A) all buildings, structures, or installations
located on any 1 or more contiguous or adjacent
properties of an entity in the United States; and
(B) a fleet of 20 or more motor vehicles
under the common control of an entity.
(8) GREENHOUSE GAS.—The term ‘‘greenhouse
gas’’ means—
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons;
(F) sulfur hexafluoride; and
(G) any other anthropogenic climate-forcing
emissions with significant ascertainable global
warming potential, as—
(i) recommended by the National Acad-
emy of Sciences under section 1107(b)(3);
and
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(ii) determined in regulations promul-
gated under section 1104(c)(1) (or revisions
to the regulations) to be appropriate and
practicable for coverage under this title.
(9) INDIRECT EMISSIONS.—The term ‘‘indirect
emissions’’ means greenhouse gas emissions that—
(A) are a result of the activities of an enti-
ty; but
(B)(i) are emitted from a facility owned or
controlled by another entity; and
(ii) are not reported as direct emissions by
the entity the activities of which resulted in the
emissions.
(10) REGISTRY.—The term ‘‘registry’’ means the
registry of greenhouse gas emission reductions estab-
lished as a component of the database under section
1104(b)(2).
(11) SEQUESTRATION.—
(A) IN
GENERAL.—The term ‘‘sequestra-
tion’’ means the capture, long-term separation,
isolation, or removal of greenhouse gases from the
atmosphere.
(B) INCLUSIONS.—The term ‘‘sequestration’’
includes—
(i) soil carbon sequestration;
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(ii) 
agricultural 
and 
conservation
practices;
(iii) reforestation;
(iv) forest preservation;
(v) maintenance of an underground
reservoir; and
(vi) any other appropriate biological
or geological method of capture, isolation, or
removal of greenhouse gases from the atmos-
phere, as determined by the Administrator.
SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREE-
MENT.
(a) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the President, acting through the
Director of the Office of National Climate Change Policy,
shall direct the Secretary of Energy, the Secretary of Com-
merce, the Secretary of Agriculture, the Secretary of Trans-
portation, and the Administrator to enter into a memo-
randum of agreement under which those heads of Federal
agencies will—
(1) recognize and maintain statutory and regu-
latory authorities, functions, and programs that—
(A) are established as of the date of enact-
ment of this Act under other law;
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(B) provide for the collection of data relat-
ing to greenhouse gas emissions and effects; and
(C) are necessary for the operation of the
database;
(2)(A) distribute additional responsibilities and
activities identified under this title to Federal depart-
ments or agencies in accordance with the missions
and expertise of those departments and agencies; and
(B) maximize the use of available resources of
those departments and agencies; and
(3) provide for the comprehensive collection and
analysis of data on greenhouse gas emissions relating
to product use (including the use of fossil fuels and
energy-consuming appliances and vehicles).
(b) MINIMUM REQUIREMENTS.—The memorandum of
agreement entered into under subsection (a) shall, at a min-
imum, retain the following functions for the designated
agencies:
(1) DEPARTMENT OF ENERGY.—The Secretary of
Energy shall be primarily responsible for developing,
maintaining, and verifying the registry and the emis-
sion reductions reported under section 1605(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13385(b)).
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(2) DEPARTMENT OF COMMERCE.—The Secretary
of Commerce shall be primarily responsible for the de-
velopment of—
(A) measurement standards for the moni-
toring of emissions; and
(B) verification technologies and methods to
ensure the maintenance of a consistent and tech-
nically accurate record of emissions, emission re-
ductions, and atmospheric concentrations of
greenhouse gases for the database.
(3) ENVIRONMENTAL PROTECTION AGENCY.—The
Administrator shall be primarily responsible for—
(A) emissions monitoring, measurement,
verification, and data collection under this title
and title IV (relating to acid deposition control)
and title VIII of the Clean Air Act (42 U.S.C.
7651 et seq.), including mobile source emissions
information from implementation of the cor-
porate average fuel economy program under
chapter 329 of title 49, United States Code; and
(B) responsibilities of the Environmental
Protection Agency relating to completion of the
national inventory for compliance with the
United Nations Framework Convention on Cli-
mate Change, done at New York on May 9, 1992.
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(4) DEPARTMENT OF AGRICULTURE.—The Sec-
retary of Agriculture shall be primarily responsible
for—
(A) developing measurement techniques
for—
(i) soil carbon sequestration; and
(ii) forest preservation and reforest-
ation activities; and
(B) providing technical advice relating to
biological carbon sequestration measurement and
verification standards for measuring greenhouse
gas emission reductions or offsets.
(c) DRAFT MEMORANDUM OF AGREEMENT.—Not later
than 15 months after the date of enactment of this Act, the
President, acting through the Director of the Office of Na-
tional Climate Change Policy, shall publish in the Federal
Register, and solicit comments on, a draft version of the
memorandum of agreement described in subsection (a).
(d) NO JUDICIAL REVIEW.—The final version of the
memorandum of agreement shall not be subject to judicial
review.
SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.
(a) ESTABLISHMENT.—As soon as practicable after the
date of enactment of this Act, the designated agencies, in
consultation with the private sector and nongovernmental
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organizations, shall jointly establish, operate, and maintain
a database, to be known as the ‘‘National Greenhouse Gas
Database’’, to collect, verify, and analyze information on
greenhouse gas emissions by entities.
(b) NATIONAL GREENHOUSE GAS DATABASE COMPO-
NENTS.—The database shall consist of—
(1) an inventory of greenhouse gas emissions;
and
(2) a registry of greenhouse gas emission reduc-
tions.
(c) COMPREHENSIVE SYSTEM.—
(1) IN GENERAL.—Not later than 2 years after
the date of enactment of this Act, the designated agen-
cies shall jointly promulgate regulations to implement
a comprehensive system for greenhouse gas emissions
reporting, inventorying, and reductions registration.
(2) REQUIREMENTS.—The designated agencies
shall ensure, to the maximum extent practicable,
that—
(A) the comprehensive system described in
paragraph (1) is designed to—
(i) 
maximize 
completeness, 
trans-
parency, and accuracy of information re-
ported; and
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(ii) minimize costs incurred by entities
in measuring and reporting greenhouse gas
emissions; and
(B) the regulations promulgated under
paragraph (1) establish procedures and protocols
necessary—
(i) to prevent the reporting of some or
all of the same greenhouse gas emissions or
emission reductions by more than 1 report-
ing entity;
(ii) to provide for corrections to errors
in data submitted to the database;
(iii) to provide for adjustment to data
by reporting entities that have had a sig-
nificant organizational change (including
mergers, acquisitions, and divestiture), in
order to maintain comparability among
data in the database over time;
(iv) to provide for adjustments to re-
flect new technologies or methods for meas-
uring or calculating greenhouse gas emis-
sions; and
(v) to account for changes in registra-
tion of ownership of emission reductions re-
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tion’ in section 322 of the Higher Education Act of
1965 (20 U.S.C. 1061).
‘‘(3) NATIONAL
LABORATORY.—The term ‘Na-
tional Laboratory’ has the meaning given the term in
section 1203 of the Energy Science and Technology
Enhancement Act of 2003.
‘‘(4) SCIENCE FACILITY.—The term ‘science facil-
ity’ has the meaning given the term ‘single-purpose
research facility’ in section 1401 of the Energy
Science and Technology Enhancement Act of 2003.
‘‘(5) TRIBAL COLLEGE.—The term ‘tribal college’
has the meaning given the term ‘tribally controlled
college or university’ in section 2(a) of the Tribally
Controlled College or University Assistance Act of
1978 (25 U.S.C. 1801(a)).
‘‘(b) EDUCATION PARTNERSHIP.—
‘‘(1) IN GENERAL.—The Secretary shall direct
the Director of each National Laboratory, and may
direct the head of any science facility, to increase the
participation of historically Black colleges or univer-
sities, Hispanic-serving institutions, or tribal colleges
in activities that increase the capacity of the histori-
cally Black colleges or universities, Hispanic-serving
institutions, or tribal colleges to train personnel in
science or engineering.
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‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds
the amount of the limitation under subsection (e) for
such taxable year (referred to as the ‘unused credit
year’ in this subsection), such excess shall be allowed
as a credit carryforward for each of the 20 taxable
years following the unused credit year.
‘‘(2) RULES.—Rules similar to the rules of sec-
tion 39 shall apply with respect to the credit
carryforward under paragraph (1).
‘‘(j) SPECIAL RULES.—Rules similar to the rules of
paragraphs (4) and (5) of section 179A(e) shall apply.
‘‘(k) REGULATIONS.—The Secretary shall prescribe
such regulations as necessary to carry out the provisions
of this section.
‘‘(l) TERMINATION.—This section shall not apply to
any property placed in service—
‘‘(1) in the case of property relating to hydrogen,
after December 31, 2011, and
‘‘(2) in the case of any other property, after De-
cember 31, 2006.’’.
(b) INCENTIVE FOR PRODUCTION OF HYDROGEN AT
QUALIFIED
CLEAN-FUEL
VEHICLE
REFUELING
PROP-
ERTY.—Section 179A(d) (defining qualified clean-fuel vehi-