559 
(1) by striking ‘‘Indian tribe may use’’ and all 
that follows through ‘‘for administrative expenses’’ 
and inserting ‘‘Indian tribe may use for administra-
tive expenses’’; 
(2) by striking subparagraphs (B) and (C); 
(3) by redesignating the remaining clauses (i) 
and (ii) as subparagraphs (A) and (B), respectively 
and adjusting the margin of those subparagraphs ac-
cordingly; and 
(4) by striking the semicolon at the end and in-
serting a period. 
SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION. 
(a) Section 541(3)(A) of the Energy Independence 
and Security Act of 2007 is amended in clause (i) by strik-
ing ‘‘and’’ at the end of subclause (II), in clause (ii) by 
striking the period at the end of subclause (II) and insert-
ing ‘‘; or’’, and by inserting the following new clause (iii): 
‘‘(iii) a group of adjacent, contiguous, or 
geographically proximate units of local govern-
ment that reach agreement to act jointly for 
purposes of this section and that represent a 
combined population of not less than 35,000.’’. 
(b) Section 541(3)(B) of the Energy Independence 
and Security Act of 2007 is amended in clause (i) by strik-
ing ‘‘or’’, in clause (ii) by striking the period at the end
560 
and inserting ‘‘; or’’, and by inserting the following new 
clause (iii): 
‘‘(iii) a group of adjacent, contiguous, or 
geographically proximate units of local govern-
ment that reach agreement to act jointly for 
purposes of this section and that represent a 
combined population of not less than 50,000.’’. 
SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY 
PROGRAM. 
(a) IN GENERAL.—The Secretary of Energy is au-
thorized to make grants to private, nonprofit, mission- 
driven community development organizations including 
community development corporations and community de-
velopment financial institutions to provide financing to 
businesses and projects that improve energy efficiency; 
identify and develop alternative, renewable, and distrib-
uted energy supplies; provide technical assistance and pro-
mote job and business opportunities for low-income resi-
dents; and increase energy conservation in low income 
rural and urban communities. 
(b) GRANTS.—The purpose of such grants is to in-
crease the flow of capital and benefits to low income com-
munities, minority-owned and woman-owned businesses 
and entrepreneurs and other projects and activities located 
in low income communities in order to reduce environ-
561 
mental degradation, foster energy conservation and effi-
ciency and create job and business opportunities for local 
residents. The Secretary may make grants on a competi-
tive basis for— 
(1) investments that develop alternative, renew-
able, and distributed energy supplies; 
(2) capitalizing loan funds that lend to energy 
efficiency projects and energy conservation pro-
grams; 
(3) technical assistance to plan, develop, and 
manage an energy efficiency financing program; and 
(4) technical and financial assistance to assist 
small-scale businesses and private entities develop 
new renewable and distributed sources of power or 
combined heat and power generation. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section there is authorized to be appro-
priated $50,000,000 for each of the fiscal years 2010 
through 2015. 
SEC. 265. CONSUMER BEHAVIOR RESEARCH. 
(a) IN GENERAL.—The Secretary of Energy is au-
thorized to establish a research program to identify the 
factors affecting consumer actions to conserve energy and 
make improvements in energy efficiency. Through the pro-
gram the Secretary will make grants to public and private
562 
institutions of higher education to study the effects of con-
sumer behavior on total energy use; potential energy sav-
ings from changes in consumption habits; the ability to 
reduce greenhouse gas emissions through changes in en-
ergy consumption habits; increase public awareness of 
Federal climate adaptation and mitigation programs; and 
the potential for alterations in consumer behavior to fur-
ther American energy independence. Grants may also fund 
projects that evaluate or inform public knowledge of the 
effects of energy consumption habits on these topics. 
(b) GRANTS.—The purpose of the program is to pro-
vide grants to public and private institutions of higher 
education to carry out projects which will improve under-
standing of the effects of consumer behavior on energy 
consumption and conservation. The Secretary shall make 
grants on a competitive basis for— 
(1) studies of the effects of consumer habits on 
energy consumption and conservation; 
(2) development of strategies that communicate 
the importance of energy efficiency and conservation 
to consumers; 
(3) identification of best practices to improve 
consumer energy use habits;
563 
(4) education programs that inform consumers 
about the implications of consumption habits on en-
ergy use and climate change; 
(5) evaluation of the effectiveness of programs 
designed to promote public awareness of Federal 
Government climate adaptation and mitigation ac-
tivities; and 
(6) other projects that advance the mission of 
the program. 
(c) REPORT.—The Secretary of Energy shall provide 
Congress with a report on progress towards establishing 
the program within 120 days after the date of enactment 
of this Act. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
Subtitle G—Miscellaneous 
SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMU-
NICATIONS TECHNOLOGIES. 
Section 543 of the National Energy Conservation 
Policy Act (42 U.S.C. 8253) is amended to read as follows: 
‘‘SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMU-
NICATIONS TECHNOLOGIES. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of the American Clean Energy and Se-
564 
curity Act of 2009, each Federal agency shall collaborate 
with the Director of the Office of Management and Budget 
(referred to in this section as the ‘Director’) to create an 
implementation strategy, including best practices and 
measurement and verification techniques, for the purchase 
and use of energy efficient information and communica-
tions technologies and practices. Wherever possible, exist-
ing standards, specifications, performance metrics, and 
best management practices that have been or are being 
developed in open collaboration and with broad stake-
holder input and review should be incorporated. In addi-
tion, agency strategies shall be flexible, cost-effective, and 
based on the specific operating requirements and statutory 
mission of each agency. 
‘‘(b) ENERGY EFFICIENT INFORMATION AND COM-
MUNICATIONS TECHNOLOGIES.—In developing an imple-
mentation strategy, each agency shall— 
‘‘(1) consider information and communications 
technologies and infrastructure, including, but not 
limited to, advanced metering infrastructure, infor-
mation and communications technology services and 
products, efficient data center strategies, applica-
tions modernization and rationalization, building 
systems energy efficiency, and telework; and
565 
‘‘(2) ensure that agencies are eligible to realize 
the savings and rewards brought about through in-
creased efficiencies. 
‘‘(c) PERFORMANCE
GOALS.—Not later than 6 
months after the date of enactment of the American Clean 
Energy and Security Act of 2009, the Director shall estab-
lish performance goals for evaluating the efforts of the 
agencies in improving the maintenance, purchase and use 
of energy efficiency of information and communications 
technology systems. These performance goals should 
measure information technology costs over a specific time 
horizon (3 to 5 years), providing a complete picture of all 
costs, including energy. 
‘‘(d) REPORT.—Not later than 18 months after the 
date of enactment of the American Clean Energy and Se-
curity Act of 2009, and annually thereafter, the Director 
shall submit a report to Congress on— 
‘‘(1) the progress of each agency in reducing 
energy use through its implementation strategy; and 
‘‘(2) new and emerging technologies that would 
help achieve increased energy efficiency.’’. 
SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS. 
(a) GOALS.—The energy efficiency goals of the 
United States are—
566 
(1) to achieve an improvement in the overall en-
ergy productivity of the United States (measured in 
gross domestic product per unit of energy input) of 
at least 2.5 percent per year by the year 2012; and 
(2) to maintain that annual rate of improve-
ment each year through 2030. 
(b) STRATEGIC PLAN.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of 
Energy (referred to in this section as the ‘‘Sec-
retary’’), in cooperation with the Administrator and 
the heads of other appropriate Federal agencies, 
shall develop a strategic plan to achieve the national 
goals for improvement in energy productivity estab-
lished under subsection (a). 
(2) PUBLIC INPUT AND COMMENT.—The Sec-
retary shall develop the plan in a manner that pro-
vides appropriate opportunities for public input and 
comment. 
(c) PLAN CONTENTS.—The strategic plan shall— 
(1) identify future regulatory, funding, and pol-
icy priorities that would assist the United States in 
meeting the national goals; 
(2) include energy savings estimates for each 
sector; and
567 
(3) include data collection methodologies and 
compilations used to establish baseline and energy 
savings data. 
(d) PLAN UPDATES.— 
(1) IN GENERAL.—The Secretary shall— 
(A) update the strategic plan biennially; 
and 
(B) include the updated strategic plan in 
the national energy policy plan required by sec-
tion 801 of the Department of Energy Organi-
zation Act (42 U.S.C. 7321). 
(2) CONTENTS.—In updating the plan, the Sec-
retary shall— 
(A) report on progress made toward imple-
menting efficiency policies to achieve the na-
tional goals established under subsection (a); 
and 
(B) verify, to the maximum extent prac-
ticable, energy savings resulting from the poli-
cies. 
(e) REPORT TO CONGRESS AND THE PUBLIC.—The 
Secretary shall submit to Congress, and make available 
to the public, the initial strategic plan developed under 
subsection (b) and each updated plan.
568 
SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE 
TEAM. 
(a) DEFINITIONS.—In this section: 
(1) AFFILIATED ISLAND.—The term ‘‘affiliated 
island’’ means— 
(A) the Commonwealth of Puerto Rico; 
(B) Guam; 
(C) American Samoa; 
(D) the Commonwealth of the Northern 
Mariana Islands; 
(E) the Federated States of Micronesia; 
(F) the Republic of the Marshall Islands; 
(G) the Republic of Palau; and 
(H) the United States Virgin Islands. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy (acting through the Assist-
ant Secretary of Energy Efficiency and Renewable 
Energy), in consultation with the Secretary of the 
Interior and the Secretary of State. 
(3) TEAM.—The term ‘‘team’’ means the team 
established by the Secretary under subsection (b). 
(b) ESTABLISHMENT.—As soon as practicable after 
the date of enactment of this Act, the Secretary shall as-
semble a team of technical, policy, and financial experts 
to address the energy needs of each affiliated island—
569 
(1) to reduce the reliance and expenditure of 
each affiliated island on imported fossil fuels; 
(2) to increase the use by each affiliated island 
of indigenous, nonfossil fuel energy sources; 
(3) to improve the performance of the energy 
infrastructure of the affiliated island through 
projects— 
(A) to improve the energy efficiency of 
power generation, transmission, and distribu-
tion; and 
(B) to increase consumer energy efficiency; 
(4) to improve the performance of the energy 
infrastructure of each affiliated island through en-
hanced planning, education, and training; 
(5) to adopt research-based and public-private 
partnership-based approaches as appropriate; 
(6) to stimulate economic development and job 
creation; and 
(7) to enhance the engagement by the Federal 
Government in international efforts to address island 
energy needs. 
(c) DUTIES OF TEAM.— 
(1) ENERGY ACTION PLANS.— 
(A) IN
GENERAL.—In accordance with 
subparagraph (B), the team shall provide tech-
570 
nical, programmatic, and financial assistance to 
each utility of each affiliated island, and the 
government of each affiliated island, as appro-
priate, to develop and implement an energy Ac-
tion Plan for each affiliated island to reduce the 
reliance of each affiliated island on imported 
fossil fuels through increased efficiency and use 
of indigenous clean-energy resources. 
(B) REQUIREMENTS.—Each Action Plan 
described in subparagraph (A) for each affili-
ated island shall require and provide for— 
(i) the conduct of 1 or more studies to 
assess opportunities to reduce fossil fuel 
use through— 
(I) the improvement of the en-
ergy efficiency of the affiliated island; 
and 
(II) the increased use by the af-
filiated island of indigenous clean-en-
ergy resources; 
(ii) the identification and implementa-
tion of the most cost-effective strategies 
and projects to reduce the dependence of 
the affiliated island on fossil fuels;
571 
(iii) the promotion of education and 
training activities to improve the capacity 
of the local utilities of the affiliated island, 
and the government of the affiliated island, 
as appropriate, to plan for, maintain, and 
operate the energy infrastructure of the af-
filiated island through the use of local or 
regional institutions, as appropriate; 
(iv) the coordination of the activities 
described in clause (iii) to leverage the ex-
pertise and resources of international enti-
ties, the Department of Energy, the De-
partment of the Interior, and the regional 
utilities of the affiliated island; 
(v) the identification, and develop-
ment, as appropriate, of research-based 
and private-public, partnership approaches 
to implement the Action Plan; and 
(vi) any other component that the 
Secretary determines to be necessary to re-
duce successfully the use by each affiliated 
island of fossil fuels. 
(2) REPORTS TO SECRETARY.—Not later than 
1 year after the date on which the Secretary estab-
lishes the team and biennially thereafter, the team
573 
SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM. 
(a) EPA STUDY.—The Administrator shall conduct 
a study to determine the feasibility of establishing a na-
tional program for measuring, reporting, publicly dis-
closing, and labeling products or materials sold in the 
United States for their carbon content, and shall, not later 
than 18 months after the date of enactment of this Act, 
transmit a report to Congress which shall include the fol-
lowing: 
(1) A determination of whether a national prod-
uct carbon disclosure program and labeling program 
would be effective in achieving the intended goals of 
achieving greenhouse gas reductions and an exam-
ination of existing programs globally and their 
strengths and weaknesses. 
(2) Criteria for identifying and prioritizing sec-
tors and products and processes that should be cov-
ered in such program or programs. 
(3) An identification of products, processes, or 
sectors whose inclusion could have a substantial car-
bon impact (prioritizing industrial products such as 
iron and steel, aluminum, cement, chemicals, and 
paper products, and also including food, beverage, 
hygiene, cleaning, household cleaners, construction, 
metals, clothing, semiconductor, and consumer elec-
tronics).
574 
(4) Suggested methodology and protocols for 
measuring the carbon content of the products across 
the entire carbon lifecycle of such products for use 
in a carbon disclosure program and labeling pro-
gram. 
(5) A review of existing greenhouse gas product 
accounting standards, methodologies, and practices 
including the Greenhouse Gas Protocol, ISO 14040/ 
44, ISO 14067, and Publically Available Specifica-
tion 2050, and including a review of the strengths 
and weaknesses of each. 
(6) A survey of secondary databases including 
the Manufacturing Energy Consumption Survey and 
evaluate the quality of data for use in a product car-
bon disclosure program and product carbon labeling 
program and an identification of gaps in the data 
relative to the potential purposes of a national prod-
uct carbon disclosure program and product carbon 
labeling program and development of recommenda-
tions for addressing these data gaps. 
(7) An assessment of the utility of comparing 
products and the appropriateness of product carbon 
standards. 
(8) An evaluation of the information needed on 
a label for clear and accurate communication, in-
575 
cluding what pieces of quantitative and qualitative 
information needs to be disclosed. 
(9) An evaluation of the appropriate boundaries 
of the carbon lifecycle analysis for different sectors 
and products. 
(10) An analysis of whether default values 
should be developed for products whose producer 
does not participate in the program or does not have 
data to support a disclosure or label and determine 
best ways to develop such default values. 
(11) A recommendation of certification and 
verification options necessary to assure the quality 
of the information and avoid greenwashing or the 
use of insubstantial or meaningless environmental 
claims to promote a product. 
(12) An assessment of options for educating 
consumers about product carbon content and the 
product carbon disclosure program and product car-
bon labeling program. 
(13) An analysis of the costs and timelines as-
sociated with establishing a national product carbon 
disclosure program and product carbon labeling pro-
gram, including options for a phased approach. 
Costs should include those for businesses associated 
with the measurement of carbon footprints and
576 
those associated with creating a product carbon label 
and managing and operating a product carbon label-
ing program, and options for minimizing these costs. 
(14) An evaluation of incentives (such as finan-
cial incentives, brand reputation, and brand loyalty) 
to determine whether reductions in emissions can be 
accelerated through encouraging more efficient man-
ufacturing or by encouraging preferences for lower- 
emissions products to substitute for higher-emissions 
products whose level of performance is no better. 
(b) DEVELOPMENT OF NATIONAL CARBON DISCLO-
SURE PROGRAM.—Upon conclusion of the study, and not 
more than 36 months after the date of enactment of this 
Act, the Administrator shall establish a national product 
carbon disclosure program, participation in which shall be 
voluntary, and which may involve a product carbon label 
with broad applicability to the wholesale and consumer 
markets to enable and encourage knowledge about carbon 
content by producers and consumers and to inform efforts 
to reduce energy consumption (carbon dioxide equivalent 
emissions) nationwide. In developing such a program, the 
Administrator shall— 
(1) consider the results of the study conducted 
under subsection (a);
577 
(2) consider existing and planned programs and 
proposals and measurement standards (including the 
Publicly Available Specification 2050, standards to 
be developed by the World Resource Institute/World 
Business Council for Sustainable Development, the 
International Standards Organization, and the bill 
AB19 pending in the California legislature); 
(3) consider the compatibility of a national 
product carbon disclosure program with existing pro-
grams; 
(4) utilize incentives and other means to spur 
the adoption of product carbon disclosure and prod-
uct carbon labeling; 
(5) develop protocols and parameters for a 
product carbon disclosure program, including a 
methodology and formula for assessing, verifying, 
and potentially labeling a product’s greenhouse gas 
content, and for data quality requirements to allow 
for product comparison; 
(6) create a means to— 
(A) document best practices; 
(B) ensure clarity and consistency; 
(C) work with suppliers, manufacturers, 
and retailers to encourage participation;
578 
(D) ensure that protocols are consistent 
and comparable across like products; and 
(E) evaluate the effectiveness of the pro-
gram; 
(7) make publicly available information on 
product carbon content to ensure transparency; 
(8) provide for public outreach, including a con-
sumer education program to increase awareness; 
(9) develop training and education programs to 
help businesses learn how to measure and commu-
nicate their carbon footprint and easy tools and tem-
plates for businesses to use to reduce cost and time 
to measure their products’ carbon lifecycle; 
(10) consult with the Secretary of Energy, the 
Secretary of Commerce, the Federal Trade Commis-
sion, and other Federal agencies, as necessary; 
(11) gather input from stakeholders through 
consultations, public workshops or hearings with 
representatives of consumer product manufacturers, 
consumer groups, and environmental groups; 
(12) utilize systems for verification and product 
certification that will ensure that claims manufactur-
ers make about their products are valid; 
(13) create a process for reviewing the accuracy 
of product carbon label information and protecting
579 
the product carbon label in the case of a change in 
the product’s energy source, supply chain, ingredi-
ents, or other factors, and specify the frequency to 
which data should be updated; and 
(14) develop a standardized, easily understand-
able carbon label, if appropriate, and create a proc-
ess for responding to inaccuracies and misuses of 
such a label. 
(c) REPORT TO CONGRESS.—Not later than 5 years 
after the program is established pursuant to subsection 
(b), the Administrator shall report to Congress on the ef-
fectiveness and impact of the program, the level of vol-
untary participation, and any recommendations for addi-
tional measures. 
(d) DEFINITIONS.—As used in this section— 
(1) the term ‘‘carbon content’’ means the 
amount of greenhouse gas emissions and their 
warming impact on the atmosphere expressed in car-
bon dioxide equivalent associated with a product’s 
value chain; 
(2) the term ‘‘carbon footprint’’ means the level 
of greenhouse gas emissions produced by a par-
ticular activity, service, or entity; and 
(3) the term ‘‘carbon lifecycle’’ means the 
greenhouse gas emissions that are released as part
580 
of the processes of creating, producing, processing or 
manufacturing, modifying, transporting, distrib-
uting, storing, using, recycling, or disposing of goods 
and services. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Administrator 
$5,000,000 for the study required by subsection (a) and 
$25,000,000 for each of fiscal years 2010 through 2025 
for the program required under subsection (b). 
SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION 
AND TRAINING INITIATIVE. 
(a) IN GENERAL.—The Secretary of Energy shall 
carry out a national education and awareness program for 
the purpose of informing building, facility, and industrial 
plant owners and managers and decisionmakers, govern-
ment leaders, and industry leaders about the large energy- 
saving potential of greater use of mechanical insulation, 
and other benefits. 
(b) PURPOSE AND GOALS.— 
(1) PURPOSE.—The purpose of the initiative 
shall be to increase the energy efficiency of the com-
mercial and industrial sectors through an ongoing 
program that will include— 
(A) education and training sessions; 
(B) Web-based information; and
581 
(C) advertising. 
(2) GOALS.—The goals of the initiative shall be 
to— 
(A) educate and motivate commercial 
building owners and industrial facility managers 
to utilize mechanical insulation in new and ex-
isting facilities; 
(B) preserve and create jobs while reduc-
ing energy and greenhouse gas emissions; 
(C) create a safer working environment 
and make businesses more competitive in a 
global economy; and 
(D) motivate and empower the industry to 
make better use of mechanical insulation 
through awareness, education, and training. 
(c) REPORT.—Not later than July 1, 2013, the Sec-
retary shall submit to Congress a report describing the 
extent by which the initiative has been enacted and the 
actual and projected effectiveness of the program under 
this section, including the energy efficiency, greenhouse 
gas emissions reductions, cost savings, and safety benefits 
at manufacturing facilities, power plants, refineries, hos-
pitals, universities, government buildings, and other com-
mercial and industrial locations.
582 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $3,500,000 for each of 
fiscal years 2010 through 2014 to carry out this section.
The Secretary may enter into a cooperative agreement, in-
cluding grant funding, with an industry association and 
union working collaboratively and having expertise on the 
installation, maintenance, measure of efficiencies and 
standards, and certification of mechanical insulation in 
buildings and facilities. 
(e) TERMINATION
OF AUTHORITY.—The program 
carried out under this section shall terminate on December 
31, 2014. 
SEC. 276. SENSE OF CONGRESS. 
It is the sense of Congress that the United States 
should— 
(1) continue to actively promote, within the 
International Civil Aviation Organization, the devel-
opment of a global framework for the regulation of 
greenhouse gas emissions from civil aircraft that rec-
ognizes the uniquely international nature of the in-
dustry and treats commercial aviation industries in 
all countries fairly; and 
(2) work with foreign governments towards a 
global agreement that reconciles foreign carbon 
emissions reduction programs to minimize duplica-
583 
tive requirements and avoids unnecessary complica-
tion for the aviation industry, while still achieving 
the environmental goals. 
Subtitle H—Green Resources for 
Energy Efficient Neighborhoods 
SEC. 281. SHORT TITLE. 
This subtitle may be cited as the ‘‘Green Resources 
for Energy Efficient Neighborhoods Act of 2009’’ or the 
‘‘GREEN Act of 2009’’. 
SEC. 282. DEFINITIONS. 
For purposes of this subtitle, the following definitions 
shall apply: 
(1) GREEN BUILDING STANDARDS.—The term 
‘‘green building standards’’ means standards to re-
quire use of sustainable design principles to reduce 
the use of nonrenewable resources, encourage en-
ergy-efficient construction and rehabilitation and the 
use of renewable energy resources, minimize the im-
pact of development on the environment, and im-
prove indoor air quality. 
(2) HUD.—The term ‘‘HUD’’ means the De-
partment of Housing and Urban Development. 
(3) HUD ASSISTANCE.—The term ‘‘HUD as-
sistance’’ means financial assistance that is awarded, 
competitively or noncompetitively, allocated by for-
584 
mula, or provided by HUD through loan insurance 
or guarantee. 
(4) NONRESIDENTIAL STRUCTURE.—The term 
‘‘nonresidential structures’’ means only nonresiden-
tial structures that are appurtenant to single-family 
or multifamily housing residential structures, or 
those that are funded by the Secretary of Housing 
and Urban Development through the HUD Commu-
nity Development Block Grant program. 
(5) SECRETARY.—The term ‘‘Secretary’’, unless 
otherwise specified, means the Secretary of Housing 
and Urban Development. 
SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PAR-
TICIPATION 
INCENTIVES 
FOR 
HUD 
PRO-
GRAMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary shall issue 
such regulations as may be necessary to establish annual 
energy efficiency participation incentives to encourage par-
ticipants in programs administered by the Secretary, in-
cluding recipients under programs for which HUD assist-
ance is provided, to achieve substantial improvements in 
energy efficiency. 
(b) 
REQUIREMENT
FOR
APPROPRIATION
OF 
FUNDS.—The requirement under subsection (a) for the
585 
Secretary to provide annual energy efficiency participation 
incentives pursuant to the provisions of this subtitle shall 
be subject to the annual appropriation of necessary funds. 
SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS 
AND STANDARDS FOR ADDITIONAL CREDIT. 
(a) BASIC HUD STANDARD.— 
(1) RESIDENTIAL STRUCTURES.—A residential 
single-family or multifamily structure shall be con-
sidered to comply with the energy efficiency stand-
ards under this subsection if— 
(A) the structure complies with an energy 
efficiency building code that has been certified 
as in compliance with section 304 of the Energy 
Conservation and Production Act (42 U.S.C. 
6833) as amended by section 201 of this Act, 
or a national energy efficiency building code 
adopted pursuant to that section; 
(B) the structure complies with the appli-
cable provisions of the American Society of 
Heating, Refrigerating, and Air-Conditioning 
Engineers Standard 90.1–2007, as such stand-
ard or successor standard is in effect for pur-
poses of this section pursuant subsection (c); 
(C) the structure complies with the appli-
cable provisions of the 2009 International En-
586 
ergy Conservation Code, as such standard or 
successor standard is in effect for purposes of 
this section pursuant subsection (c); 
(D) in the case only of an existing struc-
ture, where determined cost effective, the struc-
ture has undergone rehabilitation or improve-
ments, completed after the date of the enact-
ment of this Act, and the energy consumption 
for the structure has been reduced by at least 
20 percent from the previous level of consump-
tion, as determined in accordance with energy 
audits performed both before and after any re-
habilitation or improvements undertaken to re-
duce such consumption; or 
(E) the structure complies with the appli-
cable provisions of such other energy efficiency 
requirements, standards, checklists, or ratings 
systems as the Secretary may adopt and apply 
by regulation, as may be necessary, for pur-
poses of this section for specific types of resi-
dential single-family or multifamily structures 
or otherwise, except that the Secretary shall 
make a determination regarding whether to 
adopt and apply any such requirements, stand-
ards, checklists, or rating system for purposes
587 
of this section not later than the expiration of 
the 180-day period beginning upon the date of 
receipt of any written request, made in such 
form as the Secretary shall provide, for such 
adoption and application. 
In addition to compliance with any of subparagraphs 
(A) through (E), the Secretary shall by regulation 
require, for any newly constructed residential single- 
family or multifamily structure to be considered to 
comply with the energy efficiency standards under 
this subsection, that the structure have appropriate 
electrical outlets with the facility and capacity to re-
charge a standard electric passenger vehicle, includ-
ing an electric hybrid vehicle, where such vehicle 
would normally be parked. 
(2) NONRESIDENTIAL STRUCTURES.—For pur-
poses of this section, the Secretary shall identify and 
adopt by regulation, as may be necessary, energy ef-
ficiency requirements, standards, checklists, or rat-
ing systems applicable to nonresidential structures 
that are constructed or rehabilitated with HUD as-
sistance. A nonresidential structure shall be consid-
ered to comply with the energy efficiency standards 
under this subsection if the structure complies with 
the applicable provisions of any such energy effi-
588 
ciency requirements, standards, checklist, or rating 
systems identified and adopted by the Secretary pur-
suant to this paragraph, as such standards are in ef-
fect for purposes of this section pursuant to sub-
section (c). 
(3) EFFECT.—Nothing in this subsection may 
be construed to require any structure to comply with 
any standard established or adopted pursuant to this 
subsection, or identified in this subsection, or to pro-
vide any benefit or credit under any Federal pro-
gram for any structure that complies with any such 
standard, except to the extent that— 
(A) any provision of law other than this 
subsection provides a benefit or credit under a 
Federal program for compliance with a stand-
ard established or adopted pursuant to this sub-
section, or identified in this subsection; or 
(B) the Secretary specifically provides pur-
suant to subsection (c) for the applicability of 
such standard. 
(b) ENHANCED ENERGY EFFICIENCY STANDARDS 
FOR PURPOSES
OF PROVIDING ADDITIONAL CREDIT 
UNDER CERTAIN FEDERALLY ASSISTED HOUSING PRO-
GRAMS.— 
(1) PURPOSE AND EFFECT.—
589 
(A) PURPOSE.—The purpose of this sub-
section is to establish energy efficiency and con-
servation standards and green building stand-
ards that— 
(i) provide for greater energy effi-
ciency and conservation in structures than 
is required for compliance with the energy 
efficiency standards under subsection (a) 
and then in effect; 
(ii) provide for green and sustainable 
building standards not required by such 
standards; and 
(iii) can be used in connection with 
Federal housing, housing finance, and de-
velopment programs to provide incentives 
for greater energy efficiency and conserva-
tion and for green and sustainable building 
methods, elements, practices, and mate-
rials. 
(B) EFFECT.—Nothing in this subsection 
may be construed to require any structure to 
comply with any standard established pursuant 
to this subsection or to provide any benefit or 
credit under any Federal program for any 
structure, except to the extent that any provi-
590 
sion of law other than this subsection provides 
a benefit or credit under a Federal program for 
compliance with a standard established pursu-
ant to this subsection. 
(2) COMPLIANCE.—A residential or nonresiden-
tial structure shall be considered to comply with the 
enhanced energy efficiency and conservation stand-
ards or the green building standards under this sub-
section, to the extent that such structure complies 
with the applicable provisions of the standards under 
paragraph (3) or (4), respectively (as such standards 
are in effect for purposes of this section, pursuant 
to paragraph (7)), in a manner that is not required 
for compliance with the energy efficiency standards 
under subsection (a) then in effect and subject to 
the Secretary’s determination of which standards are 
applicable to which structures. 
(3) ENERGY EFFICIENCY AND CONSERVATION 
STANDARDS.—The energy efficiency and conserva-
tion standards under this paragraph are as follows: 
(A) RESIDENTIAL STRUCTURES.—With re-
spect to residential structures: 
(i) NEW
CONSTRUCTION.—For new 
construction, the Energy Star standards 
established by the Environmental Protec-
591 
tion Agency, as such standards are in ef-
fect for purposes of this subsection pursu-
ant to paragraph (7); 
(ii) EXISTING STRUCTURES.—For ex-
isting structures, a reduction in energy 
consumption from the previous level of 
consumption for the structure, as deter-
mined in accordance with energy audits 
performed both before and after any reha-
bilitation or improvements undertaken to 
reduce such consumption, that exceeds the 
reduction necessary for compliance with 
the energy efficiency standards under sub-
section (a) then in effect and applicable to 
existing structures. 
(B) 
NONRESIDENTIAL
STRUCTURES.— 
With respect to nonresidential structures, such 
energy efficiency and conservation require-
ments, standards, checklists, or rating systems 
for nonresidential structures as the Secretary 
shall identify and adopt by regulation, as may 
be necessary, for purposes of this paragraph. 
(4) GREEN BUILDING STANDARDS.—The green 
building standards under this paragraph are as fol-
lows:
592 
(A) The national Green Communities cri-
teria checklist for residential construction that 
provides criteria for the design, development, 
and operation of affordable housing, as such 
checklist or successor checklist is in effect for 
purposes of this section pursuant to paragraph 
(7). 
(B) The gold certification level for the 
LEED for New Construction rating system, the 
LEED for Homes rating system, the LEED for 
Core and Shell rating system, as applicable, as 
such systems or successor systems are in effect 
for purposes of this section pursuant to para-
graph (7). 
(C) The Green Globes assessment and rat-
ing system of the Green Buildings Initiative. 
(D) For manufactured housing, energy 
star rating with respect to fixtures, appliances, 
and equipment in such housing, as such stand-
ard or successor standard is in effect for pur-
poses of this section pursuant to paragraph (7). 
(E) The National Green Building Stand-
ard. 
(F) Any other requirements, standards, 
checklists, or rating systems for green building
593 
or sustainability as the Secretary may identify 
and adopt by regulation, as may be necessary 
for purposes of this paragraph, except that the 
Secretary shall make a determination regarding 
whether to adopt and apply any such require-
ments, standards, checklist, or rating system 
for purposes of this section not later than the 
expiration of the 180-day period beginning upon 
date of receipt of any written request, made in 
such form as the Secretary shall provide, for 
such adoption and application. 
(5) GREEN BUILDING.—For purposes of this 
subsection, the term ‘‘green building’’ means, with 
respect to standards for structures, standards to re-
quire use of sustainable design principles to reduce 
the use of nonrenewable resources, minimize the im-
pact of development on the environment, and to im-
prove indoor air quality. 
(6) ENERGY AUDITS.—The Secretary shall es-
tablish standards and requirements for energy au-
dits for purposes of paragraph (3)(A)(ii) and, in es-
tablishing such standards, may consult with any ad-
visory committees established pursuant to section 
285(c)(2) of this subtitle.
594 
(7) APPLICABILITY AND UPDATING OF STAND-
ARDS.— 
(A) APPLICABILITY.—Except as provided 
in subparagraph (B), the requirements, stand-
ards, checklists, and rating systems referred to 
in this subsection that are in effect for purposes 
of this subsection are such requirements, stand-
ards, checklists, and systems are as in existence 
upon the date of the enactment of this Act. 
(B) UPDATING.—For purposes of this sec-
tion, the Secretary may adopt and apply by reg-
ulation, as may be necessary, future amend-
ments and supplements to, and editions of, the 
requirements, standards, checklists, and rating 
systems referred to in this subsection, including 
applicable energy efficiency building codes that 
are certified as in compliance with section 304 
of the Energy Conservation and Production Act 
(42 U.S.C. 6833) as amended by section 201 of 
this Act, or national energy efficiency building 
codes adopted pursuant to that section. 
(c) AUTHORITY OF SECRETARY TO APPLY STAND-
ARDS
TO FEDERALLY ASSISTED HOUSING
AND PRO-
GRAMS.—
595 
(1) HUD HOUSING AND PROGRAMS.—The Sec-
retary of Housing and Urban Development may, by 
regulation, provide for the applicability of the energy 
efficiency standards under subsection (a) or the en-
hanced energy efficiency and conservation standards 
and green building standards under subsection (b), 
or both, with respect to any covered federally as-
sisted housing described in paragraph (3)(A) or any 
HUD assistance, subject to minimum Federal codes 
or standards then in effect. 
(2) RURAL HOUSING.—The Secretary of Agri-
culture may, by regulation, provide for the applica-
bility of the energy efficiency standards under sub-
section (a) or the enhanced energy efficiency and 
conservation standards and green building standards 
under subsection (b), or both, with respect to any 
covered federally assisted housing described in para-
graph (3)(B) or any assistance provided with respect 
to rural housing by the Rural Housing Service of the 
Department of Agriculture, subject to minimum 
Federal codes or standards then in effect. 
(3) COVERED
FEDERALLY
ASSISTED
HOUS-
ING.—For purposes of this subsection, the term 
‘‘covered federally assisted housing’’ means—
596 
(A) any residential or nonresidential struc-
ture for which any HUD assistance is provided; 
and 
(B) any new construction of single-family 
housing (other than manufactured homes) sub-
ject to mortgages insured, guaranteed, or made 
by the Secretary of Agriculture under title V of 
the Housing Act of 1949 (42 U.S.C. 1471 et 
seq.). 
SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEM-
ONSTRATION PROGRAM FOR MULTIFAMILY 
HOUSING 
PROJECTS 
ASSISTED 
WITH 
PROJECT-BASED RENTAL ASSISTANCE. 
(a) AUTHORITY.—For multifamily housing projects 
for which project-based rental assistance is provided under 
a covered multifamily assistance program, the Secretary 
shall, subject to the availability of amounts provided in 
advance in appropriation Acts, carry out a program to 
demonstrate the effectiveness of funding a portion of the 
costs of meeting the enhanced energy efficiency standards 
under section 284(b). At the discretion of the Secretary, 
the demonstration program may include incentives for 
housing that is assisted with Indian housing block grants 
provided pursuant to the Native American Housing Assist-
ance and Self-Determination Act of 1996, but only to the
597 
extent that such inclusion does not violate such Act, its 
regulations, and the goal of such Act of tribal self-deter-
mination. 
(b) GOALS.—The demonstration program under this 
section shall be carried out in a manner that— 
(1) protects the financial interests of the Fed-
eral Government; 
(2) reduces the proportion of funds provided by 
the Federal Government and by owners and resi-
dents of multifamily housing projects that are used 
for costs of utilities for the projects; 
(3) encourages energy efficiency and conserva-
tion by owners and residents of multifamily housing 
projects and installation of renewable energy im-
provements, such as improvements providing for use 
of solar, wind, geothermal, or biomass energy 
sources; 
(4) creates incentives for project owners to 
carry out such energy efficiency renovations and im-
provements by allowing a portion of the savings in 
operating costs resulting from such renovations and 
improvements to be retained by the project owner, 
notwithstanding otherwise applicable limitations on 
dividends;
598 
(5) promotes the installation, in existing resi-
dential buildings, of energy-efficient and cost-effec-
tive improvements and renewable energy improve-
ments, such as improvements providing for use of 
solar, wind, geothermal, or biomass energy sources; 
(6) tests the efficacy of a variety of energy effi-
ciency measures for multifamily housing projects of 
various sizes and in various geographic locations; 
(7) tests methods for addressing the various, 
and often competing, incentives that impede owners 
and residents of multifamily housing projects from 
working together to achieve energy efficiency or con-
servation; and 
(8) creates a database of energy efficiency and 
conservation, and renewable energy, techniques, en-
ergy-savings management practices, and energy effi-
ciency and conservation financing vehicles. 
(c) APPROACHES.—In carrying out the demonstra-
tion program under this section, the Secretary may— 
(1) enter into agreements with the Building 
America Program of the Department of Energy and 
other consensus committees under which such pro-
grams, partnerships, or committees assume some or 
all of the functions, obligations, and benefits of the 
Secretary with respect to energy savings;
599 
(2) establish advisory committees to advise the 
Secretary and any such third-party partners on tech-
nological and other developments in the area of en-
ergy efficiency and the creation of an energy effi-
ciency and conservation credit facility and other fi-
nancing opportunities, which committees shall in-
clude representatives of homebuilders, realtors, ar-
chitects, nonprofit housing organizations, environ-
mental protection organizations, renewable energy 
organizations, and advocacy organizations for the el-
derly and persons with disabilities; any advisory 
committees established pursuant to this paragraph 
shall not be subject to the Federal Advisory Com-
mittee Act (5 U.S.C. App.); 
(3) approve, for a period not to exceed 10 
years, additional adjustments in the maximum 
monthly rents or additional project rental assistance, 
or additional Indian housing block grant funds 
under the Native American Housing Assistance and 
Self-Determination Act of 1996, as applicable, for 
dwelling units in multifamily housing projects that 
are provided project-based rental assistance under a 
covered multifamily assistance program, in such 
amounts as may be necessary to amortize a portion
600 
of the cost of energy efficiency and conservation 
measures for such projects; 
(4) develop a competitive process for the award 
of such additional assistance for multifamily housing 
projects seeking to implement energy efficiency, re-
newable energy sources, or conservation measures; 
and 
(5) waive or modify any existing statutory or 
regulatory provision that would otherwise impair the 
implementation or effectiveness of the demonstration 
program under this section, including provisions re-
lating to methods for rent adjustments, com-
parability standards, maximum rent schedules, and 
utility allowances; notwithstanding the preceding 
provisions of this paragraph, the Secretary may not 
waive any statutory requirement relating to fair 
housing, nondiscrimination, labor standards, or the 
environment, except pursuant to existing authority 
to waive nonstatutory environmental and other ap-
plicable requirements. 
(d) REQUIREMENT.—During the 4-year period begin-
ning 12 months after the date of the enactment of this 
Act, the Secretary shall carry out demonstration programs 
under this section with respect to not fewer than 50,000 
dwelling units.
601 
(e) SELECTION.— 
(1) SCOPE.—In order to provide a broad and 
representative profile for use in designing a program 
which can become operational and effective nation-
wide, the Secretary shall carry out the demonstra-
tion program under this section with respect to 
dwelling units located in a wide variety of geographic 
areas and project types assisted by the various cov-
ered multifamily assistance programs and using a 
variety of energy efficiency and conservation and 
funding techniques to reflect differences in climate, 
types of dwelling units and technical and scientific 
methodologies, and financing options. The Secretary 
shall ensure that the geographic areas included in 
the demonstration program include dwelling units on 
Indian lands (as such term is defined in section 
2601 of the Energy Policy Act of 1992 (25 U.S.C. 
3501), to the extent that dwelling units on Indian 
land have the type of residential structures that are 
the focus of the demonstration program. 
(2) PRIORITY.—The Secretary shall provide pri-
ority for selection for participation in the program 
under this section based on the extent to which, as 
a result of assistance provided, the project will com-
602 
ply with the energy efficiency standards under sub-
section (a), (b), or (c) of section 284 of this subtitle. 
(f) USE OF EXISTING PARTNERSHIPS.—To the ex-
tent feasible, the Secretary shall— 
(1) utilize the Partnership for Advancing Tech-
nology in Housing of the Department of Housing 
and Urban Development to assist in carrying out the 
requirements of this section and to provide education 
and outreach regarding the demonstration program 
authorized under this section; and 
(2) consult with the Secretary of Energy, the 
Administrator of the Environmental Protection 
Agency, and the Secretary of the Army regarding 
utilizing the Building America Program of the De-
partment of Energy, the Energy Star Program, and 
the Army Corps of Engineers, respectively, to deter-
mine the manner in which they might assist in car-
rying out the goals of this section and providing edu-
cation and outreach regarding the demonstration 
program authorized under this section. 
(g) LIMITATION.—No amounts made available under 
the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5) may be used to carry out the dem-
onstration program under this section. 
(h) REPORTS.—
603 
(1) ANNUAL.—Not later than the expiration of 
the 2-year beginning upon the date of the enactment 
of this Act, and for each year thereafter during the 
term of the demonstration program, the Secretary 
shall submit a report to the Congress annually that 
describes and assesses the demonstration program 
under this section. 
(2) FINAL.—Not later than 6 months after the 
expiration of the 4-year period described in sub-
section (d), the Secretary shall submit a final report 
to the Congress assessing the demonstration pro-
gram, which— 
(A) shall assess the potential for expanding 
the demonstration program on a nationwide 
basis; and 
(B) shall include descriptions of— 
(i) the size of each multifamily hous-
ing project for which assistance was pro-
vided under the program; 
(ii) the geographic location of each 
project assisted, by State and region; 
(iii) the criteria used to select the 
projects for which assistance is provided 
under the program;
604 
(iv) the energy efficiency and con-
servation measures and financing sources 
used for each project that is assisted under 
the program; 
(v) the difference, before and during 
participation in the demonstration pro-
gram, in the amount of the monthly assist-
ance payments under the covered multi-
family assistance program for each project 
assisted under the program; 
(vi) the average length of the term of 
the such assistance provided under the 
program for a project; 
(vii) the aggregate amount of savings 
generated by the demonstration program 
and the amount of savings expected to be 
generated by the program over time on a 
per-unit and aggregate program basis; 
(viii) the functions performed in con-
nection with the implementation of the 
demonstration program that were trans-
ferred or contracted out to any third par-
ties;
605 
(ix) an evaluation of the overall suc-
cesses and failures of the demonstration 
program; and 
(x) recommendations for any actions 
to be taken as a result of the such suc-
cesses and failures. 
(3) CONTENTS.—Each annual report pursuant 
to paragraph (1) and the final report pursuant to 
paragraph (2) shall include— 
(A) a description of the status of each mul-
tifamily housing project selected for participa-
tion in the demonstration program under this 
section; and 
(B) findings from the program and rec-
ommendations for any legislative actions. 
(i) COVERED
MULTIFAMILY
ASSISTANCE
PRO-
GRAM.—For purposes of this section, the term ‘‘covered 
multifamily assistance program’’ means— 
(1) the program under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) for 
project-based rental assistance; 
(2) the program under section 202 of the Hous-
ing Act of 1959 (12 U.S.C. 1701q) for assistance 
for supportive housing for the elderly;
606 
(3) the program under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 8013) for supportive housing for persons 
with disabilities; 
(4) the program under section 236 of the Na-
tional Housing Act (12 U.S.C. 1715z–1 for assist-
ance for rental housing projects; 
(5) the program under section 515 of the Hous-
ing Act of 1949 (42 U.S.C. 1485) for rural rental 
housing; and 
(6) the program for assistance under the Native 
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4111). 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section, 
including providing rent adjustments, additional project 
rental assistance, and incentives, $50,000,000 for each fis-
cal year in which the demonstration program under this 
section is carried out. 
(k) REGULATIONS.—Not later than the expiration of 
the 180-day period beginning on the date of the enactment 
of this Act, the Secretary shall issue any regulations nec-
essary to carry out this section.
607 
SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND 
FREDDIE MAC HOUSING GOALS FOR ENERGY- 
EFFICIENT AND LOCATION-EFFICIENT MORT-
GAGES. 
Section 1336(a) of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4566(a)), as amended 
by the Federal Housing Finance Regulatory Reform Act 
of 2008 (Public Law 110–289; 122 Stat. 2654), is amend-
ed— 
(1) in paragraph (2), by striking ‘‘paragraph 
(5)’’ and inserting ‘‘paragraphs (5) and (6)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(6) ADDITIONAL CREDIT.— 
‘‘(A) IN GENERAL.—In assigning credit to-
ward achievement under this section of the 
housing goals for mortgage purchase activities 
of the enterprises, the Director shall assign— 
‘‘(i) more than 125 percent credit, for 
any such purchase that both— 
‘‘(I) complies with the require-
ments of such goals; and 
‘‘(II)(aa) supports housing that 
meets the energy efficiency standards 
under section 284(a) of the Green Re-
608 
sources for Energy Efficient Neigh-
borhoods Act of 2009; or 
‘‘(bb) is a location-efficient mort-
gage, as such term is defined in sec-
tion 1335(e); and 
‘‘(ii) credit in addition to credit under 
clause (i), for any such purchase that 
both— 
‘‘(I) complies with the require-
ments of such goals, and 
‘‘(II) supports housing that com-
plies with the enhanced energy effi-
ciency and conservation standards, or 
the green building standards, under 
section 284(b) of such Act, or both, 
and such additional credit shall be given 
based on the extent to which the housing 
supported with such purchases complies 
with such standards. 
‘‘(B) TREATMENT OF ADDITIONAL CRED-
IT.—The availability of additional credit under 
this paragraph shall not be used to increase any 
housing goal, subgoal, or target established 
under this subpart.’’.
609 
SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR 
ENERGY-EFFICIENT 
AND 
LOCATION-EFFI-
CIENT MORTGAGES. 
Section 1335 of Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 4565), 
as amended by the Federal Housing Finance Regulatory 
Reform Act of 2008 (Public Law 110–289; 122 Stat. 
2654), is amended— 
(1) in subsection (a)(1), by adding at the end 
the following new subparagraph: 
‘‘(D) MARKETS
FOR
ENERGY-EFFICIENT 
AND LOCATION-EFFICIENT MORTGAGES.— 
‘‘(i) DUTY.—Subject to clause (ii), the 
enterprise shall develop loan products and 
flexible underwriting guidelines to facilitate 
a secondary market for energy-efficient 
and location-efficient mortgages on hous-
ing for very low-, low-, and moderate-in-
come families, and for second and junior 
mortgages made for purposes of energy ef-
ficiency or renewable energy improvements, 
or both. 
‘‘(ii) AUTHORITY TO SUSPEND.—Not-
withstanding any other provision of this 
section, the Director may suspend the ap-
plicability of the requirement under clause
610 
(i) with respect to an enterprise, for such 
period as is necessary, if the Director de-
termines that exigent circumstances exist 
and such suspension is appropriate to en-
sure the safety and soundness of the port-
folio holdings of the enterprise.’’; 
(2) by adding at the end the following new sub-
section: 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
ENERGY-EFFICIENT
MORTGAGE.—The 
term ‘energy-efficient mortgage’ means a mortgage 
loan under which the income of the borrower, for 
purposes of qualification for such loan, is considered 
to be increased by not less than $1 for each $1 of 
savings projected to be realized by the borrower as 
a result of cost-effective energy-saving design, con-
struction or improvements (including use of renew-
able energy sources, such as solar, geothermal, bio-
mass, and wind, super-insulation, energy-saving win-
dows, insulating glass and film, and radiant barrier) 
for the home for which the loan is made. 
‘‘(2) LOCATION-EFFICIENT
MORTGAGE.—The 
term ‘location-efficient mortgage’ means a mortgage 
loan under which—
611 
‘‘(A) the income of the borrower, for pur-
poses of qualification for such loan, is consid-
ered to be increased by not less than $1 for 
each $1 of savings projected to be realized by 
the borrower because the location of the home 
for which loan is made will result in decreased 
transportation costs for the household of the 
borrower; or 
‘‘(B) the sum of the principal, interest, 
taxes, and insurance due under the mortgage 
loan is decreased by not less than $1 for each 
$1 of savings projected to be realized by the 
borrower because the location of the home for 
which loan is made will result in decreased 
transportation costs for the household of the 
borrower.’’. 
SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER 
FHA MORTGAGE INSURANCE PROGRAMS AND 
NATIVE AMERICAN AND NATIVE HAWAIIAN 
LOAN GUARANTEE PROGRAMS. 
(a) FHA MORTGAGE INSURANCE.— 
(1) REQUIREMENT.—Title V of the National 
Housing Act is amended by adding after section 542 
(12 U.S.C. 1735f–20) the following new section:
612 
‘‘SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY. 
‘‘(a) UNDERWRITING STANDARDS.—The Secretary 
shall establish a method to consider, in its underwriting 
standards for mortgages on single-family housing meeting 
the energy efficiency standards under section 284(a) of 
the Green Resources for Energy Efficient Neighborhoods 
Act of 2009 that are insured under this Act, the impact 
that savings on utility costs has on the income of the mort-
gagor. 
‘‘(b) GOAL.—It is the sense of the Congress that, in 
carrying out this Act, the Secretary should endeavor to 
insure mortgages on single-family housing meeting the en-
ergy efficiency standards under section 284(a) of the 
Green Resources for Energy Efficient Neighborhoods Act 
of 2009 such that at least 50,000 such mortgages are in-
sured during the period beginning upon the date of the 
enactment of such Act and ending on December 31, 
2012.’’. 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of mortgages on single-family housing meeting 
the energy efficiency standards under section 284(a)
613 
of the Green Resources for Energy Efficient Neigh-
borhoods Act of 2009 that are insured by the Sec-
retary during the applicable collection period, the 
number of defaults and foreclosures occurring on 
such mortgages during such period, the percentage 
of the total of such mortgages insured during such 
period on which defaults and foreclosure occurred, 
and the rate for such period of defaults and fore-
closures on such mortgages compared to the overall 
rate for such period of defaults and foreclosures on 
mortgages for single-family housing insured under 
this Act by the Secretary.’’. 
(b) INDIAN HOUSING LOAN GUARANTEES.— 
(1) REQUIREMENT.—Section 184 of the Hous-
ing and Community Development Act of 1992 (12 
U.S.C. 1715z–13a) is amended— 
(A) by redesignating subsection (l) as sub-
section (m); and 
(B) by inserting after subsection (k) the 
following new subsection: 
‘‘(l) CONSIDERATION OF ENERGY EFFICIENCY.—The 
Secretary shall establish a method to consider, in its un-
derwriting standards for loans for single-family housing 
meeting the energy efficiency standards under section 
284(a) of the Green Resources for Energy Efficient
614 
Neighborhoods Act of 2009 that are guaranteed under 
this section, the impact that savings on utility costs has 
on the income of the borrower.’’. 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)), as amended by subsection (a)(2) of this sec-
tion, is further amended by adding at the end the 
following new paragraph: 
‘‘(4) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of loans guaranteed under section 184 of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–13a) on single-family housing 
meeting the energy efficiency standards under sec-
tion 284(a) of the Green Resources for Energy Effi-
cient Neighborhoods Act of 2009 that are guaran-
teed by the Secretary during the applicable collection 
period, the number of defaults and foreclosures oc-
curring on such loans during such period, the per-
centage of the total of such loans guaranteed during 
such period on which defaults and foreclosure oc-
curred, and the rate for such period of defaults and 
foreclosures on such loans compared to the overall 
rate for such period of defaults and foreclosures on
615 
loans for single-family housing guaranteed under 
such section 184 by the Secretary.’’. 
(c) NATIVE HAWAIIAN HOUSING LOAN GUARAN-
TEES.— 
(1) REQUIREMENT.—Section 184A of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–13b) is amended by inserting 
after subsection (l) the following new subsection: 
‘‘(m) 
ENERGY-EFFICIENT
HOUSING
REQUIRE-
MENT.—The Secretary shall establish a method to con-
sider, in its underwriting standards for loans for single- 
family housing meeting the energy efficiency standards 
under section 284(a) of the Green Resources for Energy 
Efficient Neighborhoods Act of 2009 that are guaranteed 
under this section, the impact that savings on utility costs 
has on the income of the borrower.’’. 
(2) REPORTING ON DEFAULTS.—Section 540(b) 
of the National Housing Act (12 U.S.C. 1735f– 
18(b)), as amended by the preceding provisions of 
this section, is further amended by adding at the 
end the following new paragraph: 
‘‘(5) With respect to each collection period that 
commences after December 31, 2011, the total num-
ber of loans guaranteed under section 184A of the 
Housing and Community Development Act of 1992
616 
(12 U.S.C. 1715z–13b) on single-family housing 
meeting the energy efficiency standards under sec-
tion 284(a) of the Green Resources for Energy Effi-
cient Neighborhoods Act of 2009 that are guaran-
teed by the Secretary during the applicable collection 
period, the number of defaults and foreclosures oc-
curring on such loans during such period, the per-
centage of the total of such loans guaranteed during 
such period on which defaults and foreclosure oc-
curred, and the rate for such period of defaults and 
foreclosures on such loans compared to the overall 
rate for such period of defaults and foreclosures on 
loans for single-family housing guaranteed under 
such section 184A by the Secretary.’’. 
SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION- 
EFFICIENT 
MORTGAGES 
EDUCATION 
AND 
OUTREACH CAMPAIGN. 
Section 106 of the Energy Policy Act of 1992 (12 
U.S.C. 1701z–16) is amended by adding at the end the 
following new subsection: 
‘‘(g) EDUCATION AND OUTREACH CAMPAIGN.— 
‘‘(1) DEVELOPMENT OF ENERGY- AND LOCA-
TION-EFFICIENT
MORTGAGES
OUTREACH
PRO-
GRAM.—
617 
‘‘(A) COMMISSION.—The Secretary, in con-
sultation and coordination with the Secretary of 
Energy, the Secretary of Education, the Sec-
retary of Agriculture, and the Administrator of 
the Environmental Protection Agency, shall es-
tablish a commission to develop and recommend 
model mortgage products and underwriting 
guidelines that provide market-based incentives 
to prospective home buyers, lenders, and sellers 
to incorporate energy efficiency upgrades and 
location efficiencies in new mortgage loan trans-
actions. 
‘‘(B) REPORT.—Not later than 24 months 
after the date of the enactment of this Act, the 
Secretary shall provide a written report to the 
Congress on the results of work of the commis-
sion established pursuant to subparagraph (A) 
and that identifies model mortgage products 
and underwriting guidelines that may encour-
age energy and location efficiency. 
‘‘(2) IMPLEMENTATION.—After submission of 
the report under paragraph (1)(B), the Secretary, in 
consultation and coordination with the Secretary of 
Energy, the Secretary of Education, and the Admin-
istrator of the Environmental Protection Agency,
618 
shall carry out a public awareness, education, and 
outreach campaign based on the findings of the com-
mission established pursuant to paragraph (1) to in-
form and educate residential lenders and prospective 
borrowers regarding the availability, benefits, advan-
tages, and terms of energy-efficient mortgages and 
location-efficient mortgages made available pursuant 
to this section, energy-efficient and location-efficient 
mortgages that meet the requirements of section 
1335 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 4565), and other mortgages, 
including mortgages for multifamily housing, that 
have energy improvement features or location effi-
ciency features and to publicize such availability, 
benefits, advantages, and terms. Such actions may 
include entering into a contract with an appropriate 
entity to publicize and market such mortgages 
through appropriate media. 
‘‘(3) RENEWABLE
ENERGY
HOME
PRODUCT 
EXPOS.—The Congress hereby encourages the Sec-
retary of Housing and Urban Development to work 
with appropriate entities to organize and hold renew-
able energy expositions that provide an opportunity 
for the public to view and learn about renewable en-
619 
ergy products for the home that are currently on the 
market. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
retary to carry out this subsection $5,000,000 for 
each of fiscal years 2010 through 2014.’’. 
SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFI-
CIENT 
AND 
LOCATION-EFFICIENT 
MORT-
GAGES THROUGH HOME MORTGAGE DISCLO-
SURE ACT. 
(a) IN GENERAL.—Section 304(b) of the Home Mort-
gage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is 
amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(5) the number and dollar amount of mort-
gage loans for single-family housing and for multi-
family housing that are energy-efficient mortgages 
(as such term is defined in section 1335 of Housing 
and Community Development Act of 1992); and
620 
‘‘(6) the number and dollar amount of mort-
gage loans for single-family housing and for multi-
family housing that are location-efficient mortgages 
(as such term is defined in section 1335 of Housing 
and Community Development Act of 1992).’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to the first calendar 
year that begins after the expiration of the 30-day period 
beginning on the date of the enactment of this Act. 
SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS IN-
SURANCE FOR HOMES NOT CONNECTED TO 
ELECTRICITY GRID. 
(a) CONGRESSIONAL INTENT.—The Congress intends 
that— 
(1) consumers shall not be denied homeowners 
insurance for a dwelling (as such term is defined in 
subsection (c)) based solely on the fact that the 
dwelling is not connected to or able to receive elec-
tricity service from any wholesale or retail electric 
power provider; 
(2) States should ensure that consumers are 
able to obtain homeowners insurance for such dwell-
ings; 
(3) States should support insurers that develop 
voluntary incentives to provide such insurance; and
621 
(4) States may not prohibit insurers from offer-
ing a homeowners insurance product specifically de-
signed for such dwellings. 
(b) INSURING HOMES AND RELATED PROPERTY IN 
INDIAN AREAS.—Notwithstanding any other provision of 
law, dwellings located in Indian areas (as such term is de-
fined in section 4 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C. 
4103)) and constructed or maintained using assistance, 
loan guarantees, or other authority under the Native 
American Housing Assistance and Self-Determination Act 
of 1996 may be insured by any tribally owned self-insur-
ance risk pool approved by the Secretary of Housing and 
Urban Development. 
(c) DWELLING.—For purposes of this section, the 
term ‘‘dwelling’’ means a residential structure that— 
(1) consists of one to four dwelling units; 
(2) is provided electricity from renewable en-
ergy sources; and 
(3) is not connected to any wholesale or retail 
electrical power grid. 
SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT 
MULTIFAMILY HOUSING. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall establish incentives for increas-
622 
ing the energy efficiency of multifamily housing that is 
subject to a mortgage to be insured under title II of the 
National Housing Act (12 U.S.C. 1707 et seq.) so that 
the housing meets the energy efficiency standards under 
section 284(a) of this subtitle and incentives to encourage 
compliance of such housing with the energy efficiency and 
conservation standards, and the green building standards, 
under section 284(b) of this subtitle, to the extent that 
such incentives are based on the impact that savings on 
utility costs has on the operating costs of the housing, as 
determined by the Secretary. 
(b) INCENTIVES.—Such incentives may include, for 
any such multifamily housing that complies with the en-
ergy efficiency standards under section 284(a)— 
(1) providing a discount on the chargeable pre-
miums for the mortgage insurance for such housing 
from the amount otherwise chargeable for such 
mortgage insurance; 
(2) allowing mortgages to exceed the dollar 
amount limits otherwise applicable under law to the 
extent such additional amounts are used to finance 
improvements or measures designed to meet the 
standards referred to in subsection (a); and
623 
(3) reducing the amount that the owner of such 
multifamily housing meeting the standards referred 
to in subsection (a) is required to contribute. 
SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANU-
FACTURED HOUSING WITH MORTGAGES. 
Section 526 of the National Housing Act (12 U.S.C. 
1735f–4(a)) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘, other than manufactured 
homes,’’ each place such term appears; 
(B) by inserting after the period at the end 
the following: ‘‘The energy performance require-
ments developed and established by the Sec-
retary under this section for manufactured 
homes shall require energy star rating for wall 
fixtures, appliances, and equipment in such 
housing.’’; 
(C) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(D) by adding at the end the following new 
paragraphs: 
‘‘(2) The Secretary shall require, with respect to any 
single- or multi-family residential housing subject to a 
mortgage insured under this Act, that any approval or cer-
tification of the housing for meeting any energy efficiency 
or conservation criteria, standards, or requirements pursu-
624 
ant to this title and any approval or certification required 
pursuant to this title with respect to energy-conserving im-
provements or any renewable energy sources, such as 
wind, solar energy geothermal, or biomass, shall be con-
ducted only by an individual certified by a home energy 
rating system provider who has been accredited to conduct 
such ratings by the Home Energy Ratings System Coun-
cil, the Residential Energy Services Network, or such 
other appropriate national organization, as the Secretary 
may provide, or by licensed professional architect or engi-
neer. If any organization makes a request to the Secretary 
for approval to accredit individuals to conduct energy effi-
ciency or conservation ratings, the Secretary shall review 
and approve or disapprove such request not later than the 
expiration of the 6-month period beginning upon receipt 
of such request. 
‘‘(3) The Secretary shall periodically examine the 
method used to conduct inspections for compliance with 
the requirements under this section, analyze various other 
approaches for conducting such inspections, and review 
the costs and benefits of the current method compared 
with other methods.’’; and 
(2) in subsection (b), by striking ‘‘, other than 
a manufactured home,’’.
625 
SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PRO-
GRAM. 
(a) AUTHORITY.—Not later than the expiration of 
the 12-month period beginning on the date of the enact-
ment of this Act, the Secretary shall develop and imple-
ment a pilot program under this section to facilitate the 
financing of cost-effective capital improvements for cov-
ered assisted housing projects to improve the energy effi-
ciency and conservation of such projects. 
(b) LOANS.—The pilot program under this section 
shall involve not less than three and not more than five 
lenders, and shall provide for a privately financed loan to 
be made for a covered assisted housing project, which 
shall— 
(1) finance capital improvements for the project 
that meet such requirements as the Secretary shall 
establish, and may involve contracts with third par-
ties to perform such capital improvements, including 
the design of such improvements by licensed profes-
sional architects or engineers; 
(2) have a term to maturity of not more than 
20 years, which shall be based upon the duration 
necessary to realize cost savings sufficient to repay 
the loan;
626 
(3) be secured by a mortgage subordinate to the 
mortgage for the project that is insured under the 
National Housing Act; and 
(4) provide for a reduction in the remaining 
principal obligation under the loan based on the ac-
tual resulting cost savings realized from the capital 
improvements financed with the loan. 
(c) UNDERWRITING
STANDARDS.—The Secretary 
shall establish underwriting requirements for loans made 
under the pilot program under this section, which shall— 
(1) require the cost savings projected to be real-
ized from the capital improvements financed with 
the loan, during the term of the loan, to exceed the 
costs of repaying the loan; 
(2) allow the designer or contractor involved in 
designing capital improvements to be financed with 
a loan under the program to carry out such capital 
improvements; and 
(3) include such energy, audit, property, finan-
cial, ownership, and approval requirements as the 
Secretary considers appropriate. 
(d) TREATMENT OF SAVINGS.—The pilot program 
under this section shall provide that the project owner 
shall receive the full financial benefit from any reduction
627 
in the cost of utilities resulting from capital improvements 
financed with a loan made under the program. 
(e) COVERED ASSISTED HOUSING PROJECTS.—For 
purposes of this section, the term ‘‘covered assisted hous-
ing project’’ means a housing project that— 
(1) is financed by a loan or mortgage that is— 
(A) insured by the Secretary under— 
(i) subsection (d)(3) of section 221 of 
the National Housing Act (12 U.S.C. 
1715l), and bears interest at a rate deter-
mined 
under 
the 
proviso 
of 
section 
221(d)(5) of such Act; or 
(ii) subsection (d)(4) of such section 
221. 
(B) insured or assisted under section 236 
of the National Housing Act (12 U.S.C. 1715z– 
1); 
(2) at the time a loan under this section is 
made, is provided project-based rental assistance 
under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) for 50 percent or more of 
the dwelling units in the project; and 
(3) is not a housing project owned or held by 
the Secretary, or subject to a mortgage held by the 
Secretary.
628 
SEC. 295. MAKING IT GREEN. 
(a) PARTNERSHIPS WITH TREE-PLANTING ORGANI-
ZATIONS.—The Secretary shall establish and provide in-
centives for developers of housing for which any HUD fi-
nancial assistance, as determined by the Secretary, is pro-
vided for development, maintenance, operation, or other 
costs, to enter into agreements and partnerships with tree- 
planting organizations, nurseries, and landscapers to cer-
tify that trees, shrubs, grasses, and other plants are plant-
ed in the proper manner, are provided adequate mainte-
nance, and survive for at least 3 years after planting or 
are replaced. The financial assistance determined by the 
Secretary as eligible under this section shall take into con-
sideration such factors as cost effectiveness and afford-
ability. 
(b) MAKING IT GREEN PLAN.—In the case of any 
new or substantially rehabilitated housing for which HUD 
financial assistance, as determined in accordance with 
subsection (a), is provided by the Secretary for the devel-
opment, construction, maintenance, rehabilitation, im-
provement, operation, or costs of the housing, including 
financial assistance provided through the Community De-
velopment Block Grant program under title I of the Hous-
ing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), the Secretary shall require the development 
of a plan that provides for—
629 
(1) in the case of new construction and im-
provements, siting of such housing and improve-
ments in a manner that provides for energy effi-
ciency and conservation to the extent feasible, taking 
into consideration location and project type; 
(2) minimization of the effects of construction, 
rehabilitation, or other development on the condition 
of existing trees; 
(3) selection and installation of indigenous 
trees, shrubs, grasses, and other plants based upon 
applicable design guidelines and standards of the 
International Society for Arboriculture; 
(4) post-planting care and maintenance of the 
landscaping relating to or affected by the housing in 
accordance with best management practices; and 
(5) establishment of a goal for minimum 
greenspace or tree canopy cover for the housing site 
for which such financial assistance is provided, in-
cluding guidelines and timetables within which to 
achieve compliance with such minimum require-
ments. 
(c) PARTNERSHIPS.—In carrying out this section, the 
Secretary is encouraged to consult, as appropriate, with 
national organizations dedicated to providing housing as-
sistance and related services to low-income families, such
630 
as the Alliance for Community Trees and its affiliates, the 
American Nursery and Landscape Association, the Amer-
ican Society of Landscape Architects, and the National 
Arbor Day Foundation. 
SEC. 
296. 
RESIDENTIAL 
ENERGY 
EFFICIENCY 
BLOCK 
GRANT PROGRAM. 
Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK 
GRANT PROGRAM. 
‘‘(a) IN GENERAL.—To the extent amounts are made 
available for grants under this section, the Secretary shall 
make grants under this section to States, metropolitan cit-
ies and urban counties, Indian tribes, and insular areas 
to carry out energy efficiency improvements in new and 
existing single-family and multifamily housing. 
‘‘(b) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Of the total amount made 
available for each fiscal year for grants under this 
section that remains after reserving amounts pursu-
ant to paragraph (2), the Secretary shall allocate for 
insular areas, for metropolitan cities and urban 
counties, and for States, an amount that bears the 
same ratio to such total amount as the amount allo-
631 
cated for such fiscal year under section 106 for In-
dian tribes, for insular areas, for metropolitan cities 
and urban counties, and for States, respectively, 
bears to the total amount made available for such 
fiscal year for grants under section 106. 
‘‘(2) SET ASIDE FOR INDIAN TRIBES.—Of the 
total amount made available for each fiscal year for 
grants under this section, the Secretary shall allo-
cate not less than 1 percent to Indian tribes. 
‘‘(c) GRANT AMOUNTS.— 
‘‘(1) ENTITLEMENT COMMUNITIES.—From the 
amounts allocated pursuant to subsection (b) for 
metropolitan cities and urban counties for each fiscal 
year, the Secretary shall make a grant for such fis-
cal year to each metropolitan city and urban county 
that complies with the requirement under subsection 
(d), in the amount that bears the same ratio such 
total amount so allocated as the amount of the grant 
for such fiscal year under section 106 for such met-
ropolitan city or urban county bears to the aggre-
gate amount of all grants for such fiscal year under 
section 106 for all metropolitan cities and urban 
counties. 
‘‘(2) STATES.—From the amounts allocated 
pursuant to subsection (b) for States for each fiscal
632 
year, the Secretary shall make a grant for such fis-
cal year to each State that complies with the re-
quirement under subsection (d), in the amount that 
bears the same ratio such total amount so allocated 
as the amount of the grant for such fiscal year 
under section 106 for such State bears to the aggre-
gate amount of all grants for such fiscal year under 
section 106 for all States. Grant amounts received 
by a State shall be used only for eligible activities 
under subsection (e) carried out in nonentitlement 
areas of the State. 
‘‘(3) INDIAN TRIBES.—From the amounts allo-
cated pursuant to subsection (b) for Indian tribes, 
the Secretary shall make grants to Indian tribes that 
comply with the requirement under subsection (d) on 
the basis of a competition conducted pursuant to 
specific criteria, as the Secretary shall establish by 
regulation, for the selection of Indian tribes to re-
ceive such amount. 
‘‘(4) INSULAR AREAS.—From the amounts allo-
cated pursuant to subsection (b) for insular areas, 
the Secretary shall make a grant to each insular 
area that complies with the requirement under sub-
section (d) on the basis of the ratio of the population 
of the insular area to the aggregate population of all
633 
insular areas. In determining the distribution of 
amounts to insular areas, the Secretary may also in-
clude other statistical criteria as data become avail-
able from the Bureau of Census of the Department 
of Labor, but only if such criteria are set forth by 
regulation issued after notice and an opportunity for 
comment. 
‘‘(d) STATEMENT OF ACTIVITIES.— 
‘‘(1) REQUIREMENT.—Before receipt the re-
ceipt in any fiscal year of a grant under subsection 
(c) by any grantee, the grantee shall have prepared 
a final statement of housing energy efficiency objec-
tives and projected use of funds as the Secretary 
shall require and shall have provided the Secretary 
with such certifications regarding such objectives 
and use as the Secretary may require. In the case 
of metropolitan cities, urban counties, units of gen-
eral local government, and insular areas receiving 
grants, the statement of projected use of funds shall 
consist of proposed housing energy efficiency activi-
ties. In the case of States receiving grants, the state-
ment of projected use of funds shall consist of the 
method by which the States will distribute funds to 
units of general local government.
634 
‘‘(2) PUBLIC
PARTICIPATION.—The Secretary 
may establish requirements to ensure the public 
availability of information regarding projected use of 
grant amounts and public participation in deter-
mining such projected use. 
‘‘(e) ELIGIBLE ACTIVITIES.— 
‘‘(1) REQUIREMENT.—Amounts from a grant 
under this section may be used only to carry out ac-
tivities for single-family or multifamily housing that 
are designed to improve the energy efficiency of the 
housing so that the housing complies with the en-
ergy efficiency standards under section 284(a) of the 
Green Resources for Energy Efficient Neighbor-
hoods Act of 2009, including such activities to pro-
vide energy for such housing from renewable 
sources, such as wind, waves, solar, biomass, and 
geothermal sources. 
‘‘(2) PREFERENCE FOR COMPLIANCE BEYOND 
BASIC REQUIREMENTS.—In selecting activities to be 
funded with amounts from a grant under this sec-
tion, a grantee shall give more preference to activi-
ties based on the extent to which the activities will 
result in compliance by the housing with the en-
hanced energy efficiency and conservation standards,
635 
and the green building standards, under section 
284(b) of such Act. 
‘‘(f) REPORTS.—Each grantee of a grant under this 
section for a fiscal year shall submit to the Secretary, at 
a time determined by the Secretary, a performance and 
evaluation report concerning the use of grant amounts, 
which shall contain an assessment by the grantee of the 
relationship of such use to the objectives identified in the 
grantees statement under subsection (d). 
‘‘(g) APPLICABILITY OF CDBG PROVISIONS.—Sec-
tions 109, 110, and 111 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5309, 5310, 5311) 
shall apply to assistance received under this section to the 
same extent and in the same manner that such sections 
apply to assistance received under title I of such Act. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated for grants under this sec-
tion $2,500,000,000 for fiscal year 2010 and such sums 
as may be necessary for each fiscal year thereafter.’’.
636 
SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND 
TRANSPORTATION 
STRATEGIES 
IN 
COM-
PREHENSIVE 
HOUSING 
AFFORDABILITY 
STRATEGIES. 
Section 105(b) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12705(b)) is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(19); 
(2) by striking the period at the end of para-
graph (20) and inserting ‘‘; and’’; 
(3) and by inserting after paragraph (20) the 
following new paragraphs: 
‘‘(21) describe the jurisdiction’s strategies to 
encourage sustainable development for affordable 
housing, including single-family and multifamily 
housing, as measured by— 
‘‘(A) greater energy efficiency and use of 
renewable energy sources, including any strate-
gies regarding compliance with the energy effi-
ciency standards under section 284(a) of the 
Green Resources for Energy Efficient Neigh-
borhoods Act of 2009 and with the enhanced 
energy efficiency and conservation standards, 
and the green building standards, under section 
284(b) of such Act;
637 
‘‘(B) increased conservation, recycling, and 
reuse of resources; 
‘‘(C) more effective use of existing infra-
structure; 
‘‘(D) use of building materials and meth-
ods that are healthier for residents of the hous-
ing, including use of building materials that are 
free of added known carcinogens that are classi-
fied as Group 1 Known Carcinogens by the 
International Agency for Research on Cancer; 
and 
‘‘(E) such other criteria as the Secretary 
determines, in consultation with the Secretary 
of Energy, the Secretary of Agriculture, and the 
Administrator of the Environmental Protection 
Agency, are in accordance with the purposes of 
this paragraph; and 
‘‘(22) describe the jurisdiction’s efforts to co-
ordinate its housing strategy with its transportation 
planning strategies to ensure to the extent prac-
ticable that residents of affordable housing have ac-
cess to public transportation.’’.
638 
SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE 
LOW-INCOME 
COMMUNITY 
DEVELOPMENT 
CAPACITY. 
(a) IN GENERAL.—The Secretary may make grants 
to nonprofit organizations to use for any of the following 
purposes: 
(1) Training, educating, supporting, or advising 
an eligible community development organization or 
qualified youth service and conservation corps in im-
proving energy efficiency, resource conservation and 
reuse, design strategies to maximize energy effi-
ciency, installing or constructing renewable energy 
improvements (such as wind, wave, solar, biomass, 
and geothermal energy sources), and effective use of 
existing infrastructure in affordable housing and 
economic development activities in low-income com-
munities, taking into consideration energy efficiency 
standards under section 284(a) of this subtitle and 
with the enhanced energy efficiency and conservation 
standards, and the green building standards, under 
section 284(b) of this subtitle. 
(2) Providing loans, grants, or predevelopment 
assistance to eligible community development organi-
zations or qualified youth service and conservation 
corps to carry out energy efficiency improvements 
that comply with the energy efficiency standards
639 
under section 284(a) of this subtitle, resource con-
servation and reuse, and effective use of existing in-
frastructure in affordable housing and economic de-
velopment activities in low-income communities. In 
providing assistance under this paragraph, the Sec-
retary shall give more preference to activities based 
on the extent to which the activities will result in 
compliance with the enhanced energy efficiency and 
conservation standards, and the green building 
standards, under section 284(b) of this subtitle. 
(3) Such other purposes as the Secretary deter-
mines are in accordance with the purposes of this 
subsection. 
(b) APPLICATION REQUIREMENT.—To be eligible for 
a grant under this section, a nonprofit organization shall 
prepare and submit to the Secretary an application at 
such time, in such manner, and containing such informa-
tion as the Secretary may require. 
(c) AWARD OF CONTRACTS.—Contracts for architec-
tural or engineering services funded with amounts from 
grants made under this section shall be awarded in accord-
ance with chapter 11 of title 40, United States Code (re-
lating to selection of architects and engineers). 
(d) MATCHING REQUIREMENT.—A grant made under 
this section may not exceed the amount that the nonprofit
640 
organization receiving the grant certifies, to the Secretary, 
will be provided (in cash or in-kind) from nongovernmental 
sources to carry out the purposes for which the grant is 
made. 
(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) The term ‘‘nonprofit organization’’ has the 
meaning given such term in section 104 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12704). 
(2) The term ‘‘eligible community development 
organization’’ means— 
(A) a unit of general local government (as 
defined in section 104 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 
12704)); 
(B) a community housing development or-
ganization (as defined in section 104 of the 
Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12704)); 
(C) an Indian tribe or tribally designated 
housing entity (as such terms are defined in 
section 4 of the Native American Housing As-
sistance and Self-Determination Act of 1996 
(25 U.S.C. 4103)); or
641 
(D) a public housing agency, as such term 
is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437(b)). 
(3) The term ‘‘low-income community’’ means a 
census tract in which 50 percent or more of the 
households have an income which is less than 80 
percent of the greater of— 
(A) the median gross income for such year 
for the area in which such census tract is lo-
cated; or 
(B) the median gross income for such year 
for the State in which such census tract is lo-
cated. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $10,000,000 for each of fiscal years 2010 
through 2014. 
SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT. 
(a) MANDATORY COMPONENT.—Section 24(e) of the 
United States Housing Act of 1937 (42 U.S.C. 1437v(e)) 
is amended by adding at the end the following new para-
graph: 
‘‘(4) GREEN DEVELOPMENTS REQUIREMENT.— 
‘‘(A) REQUIREMENT.—The Secretary may 
not make a grant under this section to an appli-
642 
cant unless the proposed revitalization plan of 
the applicant to be carried out with such grant 
amounts meets the following requirements: 
‘‘(i) GREEN
COMMUNITIES
CRITERIA 
CHECKLIST.—All residential construction 
under the proposed plan complies with the 
national 
Green 
Communities 
criteria 
checklist for residential construction that 
provides criteria for the design, develop-
ment, and operation of affordable housing, 
as such checklist is in effect for purposes 
of this paragraph pursuant to subpara-
graph (D) at the date of the application 
for the grant, or any substantially equiva-
lent standard or standards as determined 
by the Secretary, as follows: 
‘‘(I) The proposed plan shall 
comply with all items of the national 
Green Communities criteria checklist 
for residential construction that are 
identified as mandatory. 
‘‘(II) The proposed plan shall 
comply with such other nonmandatory 
items of such national Green Commu-
nities criteria checklist so as to result
643 
in a cumulative number of points at-
tributable 
to 
such 
nonmandatory 
items under such checklist of not less 
than— 
‘‘(aa) 25 points, in the case 
of any proposed plan (or portion 
thereof) consisting of new con-
struction; and 
‘‘(bb) 20 points, in the case 
of any proposed plan (or portion 
thereof) consisting of rehabilita-
tion. 
‘‘(ii) GREEN
BUILDINGS
CERTIFI-
CATION
SYSTEM.—All nonresidential con-
struction under the proposed plan complies 
with all minimum required levels of the 
green building rating systems and levels 
identified by the Secretary pursuant to 
subparagraph (C), as such systems and 
levels are in effect for purposes of this 
paragraph pursuant to subparagraph (D) 
at the time of the application for the 
grant. 
‘‘(B) VERIFICATION.—
644 
‘‘(i) IN
GENERAL.—The Secretary 
shall verify, or provide for verification, suf-
ficient to ensure that each proposed revi-
talization plan carried out with amounts 
from a grant under this section complies 
with the requirements under subparagraph 
(A) and that the revitalization plan is car-
ried out in accordance with such require-
ments and plan. 
‘‘(ii) TIMING.—In providing for such 
verification, the Secretary shall establish 
procedures to ensure such compliance with 
respect to each grantee, and shall report to 
the Congress with respect to the compli-
ance of each grantee, at each of the fol-
lowing times: 
‘‘(I) Not later than 6 months 
after execution of the grant agreement 
under this section for the grantee. 
‘‘(II) Upon completion of the re-
vitalization plan of the grantee. 
‘‘(C) IDENTIFICATION OF GREEN BUILD-
INGS RATING SYSTEMS AND LEVELS.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the Secretary shall identify
645 
rating systems and levels for green build-
ings that the Secretary determines to be 
the most likely to encourage a comprehen-
sive and environmentally sound approach 
to ratings and standards for green build-
ings. The identification of the ratings sys-
tems and levels shall be based on the cri-
teria specified in clause (ii), shall identify 
the highest levels the Secretary determines 
are appropriate above the minimum levels 
required under the systems selected. With-
in 90 days of the completion of each study 
required by clause (iii), the Secretary shall 
review and update the rating systems and 
levels, or identify alternative systems and 
levels for purposes of this paragraph, tak-
ing into account the conclusions of such 
study. 
‘‘(ii) CRITERIA.—In identifying the 
green rating systems and levels, the Sec-
retary shall take into consideration— 
‘‘(I) the ability and availability of 
assessors and auditors to independ-
ently verify the criteria and measure-
646 
ment of metrics at the scale necessary 
to implement this paragraph; 
‘‘(II) the ability of the applicable 
ratings system organizations to collect 
and reflect public comment; 
‘‘(III) the ability of the standards 
to be developed and revised through a 
consensus-based process; 
‘‘(IV) 
An 
evaluation 
of 
the 
robustness of the criteria for a high- 
performance green building, which 
shall give credit for promoting— 
‘‘(aa) efficient and sustain-
able use of water, energy, and 
other natural resources; 
‘‘(bb) use of renewable en-
ergy sources; 
‘‘(cc) improved indoor and 
outdoor 
environmental 
quality 
through enhanced indoor and 
outdoor air quality, thermal com-
fort, acoustics, outdoor noise pol-
lution, day lighting, pollutant 
source control, sustainable land-
scaping, and use of building sys-
647 
tem controls and low- or no-emis-
sion materials, including pref-
erence for materials with no 
added carcinogens that are classi-
fied as Group 1 Known Carcino-
gens by the International Agency 
for Research on Cancer; and 
‘‘(dd) such other criteria as 
the Secretary determines to be 
appropriate; and 
‘‘(V) national recognition within 
the building industry. 
‘‘(iii) 5-YEAR EVALUATION.—At least 
once every 5 years, the Secretary shall con-
duct a study to evaluate and compare 
available third-party green building rating 
systems and levels, taking into account the 
criteria listed in clause (ii). 
‘‘(D) APPLICABILITY
AND
UPDATING
OF 
STANDARDS.— 
‘‘(i) APPLICABILITY.—Except as pro-
vided in clause (ii) of this subparagraph, 
the national Green Communities criteria 
checklist and green building rating systems 
and levels referred to in clauses (i) and (ii)
648 
of subparagraph (A) that are in effect for 
purposes of this paragraph are such check-
list systems, and levels as in existence 
upon the date of the enactment of the 
Green Resources for Energy Efficient 
Neighborhoods Act of 2009. 
‘‘(ii) UPDATING.—The Secretary may, 
by regulation, adopt and apply, for pur-
poses of this paragraph, future amend-
ments and supplements to, and editions of, 
the national Green Communities criteria 
checklist, any standard or standards that 
the Secretary has determined to be sub-
stantially equivalent to such checklist, and 
the green building ratings systems and lev-
els identified by the Secretary pursuant to 
subparagraph (C).’’. 
(b) SELECTION CRITERIA; GRADED COMPONENT.— 
Section 24(e)(2) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(e)(2)) is amended— 
(1) in subparagraph (K), by striking ‘‘and’’ at 
the end; 
(2) by redesignating subparagraph (L) as sub-
paragraph (M); and
649 
(3) by inserting after subparagraph (K) the fol-
lowing new subparagraph: 
‘‘(L) the extent to which the proposed revi-
talization plan— 
‘‘(i) in the case of residential con-
struction, complies with the nonmandatory 
items of the national Green Communities 
criteria checklist identified in paragraph 
(4)(A)(i), or any substantially equivalent 
standard or standards as determined by 
the Secretary, but only to the extent such 
compliance exceeds the compliance nec-
essary to accumulate the number of points 
required under such paragraph; and 
‘‘(ii) in the case of nonresidential con-
struction, complies with the components of 
the green building rating systems and lev-
els identified by the Secretary pursuant to 
paragraph (4)(C), but only to the extent 
such compliance exceeds the minimum level 
required under such systems and levels; 
and’’.
650 
SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IM-
PROVEMENTS IN APPRAISALS. 
(a) APPRAISALS IN CONNECTION WITH FEDERALLY 
RELATED TRANSACTIONS.— 
(1) REQUIREMENT.—Section 1110 of the Fi-
nancial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3339) is amended— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) that such appraisals be performed in ac-
cordance with appraisal standards that require, in 
determining the value of a property, consideration of 
any renewable energy sources for, or energy effi-
ciency or energy-conserving improvements or fea-
tures of, the property; and’’. 
(2) REVISION
OF
APPRAISAL
STANDARDS.— 
Each Federal financial institutions regulatory agen-
cy shall, not later than 6 months after the date of 
the enactment of this Act, revise its standards for 
the performance of real estate appraisals in connec-
tion with federally related transactions under the ju-
risdiction of the agency to comply with the require-
651 
ment under the amendments made by paragraph (1) 
of this subsection. 
(b) APPRAISER CERTIFICATION AND LICENSING RE-
QUIREMENTS.—Section 1116 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3345) is amended— 
(1) in subsection (a), by inserting before the pe-
riod at the end the following: ‘‘, and meets the re-
quirements established pursuant to subsection (f) for 
qualifications regarding consideration of any renew-
able energy sources for, or energy efficiency or en-
ergy-conserving improvements or features of, the 
property’’; 
(2) in subsection (c), by inserting before the pe-
riod at the end the following: ‘‘, which shall include 
compliance with the requirements established pursu-
ant to subsection (f) regarding consideration of any 
renewable energy sources for, or energy efficiency or 
energy-conserving improvements or features of, the 
property’’; 
(3) in subsection (e), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in subsection (f), the’’; 
and 
(4) by adding at the end the following new sub-
section:
652 
‘‘(f) REQUIREMENTS FOR APPRAISERS REGARDING 
ENERGY EFFICIENCY FEATURES.—The Appraisal Sub-
committee shall establish requirements for State certifi-
cation of State certified real estate appraisers and for 
State licensing of State licensed appraisers, to ensure that 
appraisers consider and are qualified to consider, in deter-
mining the value of a property, any renewable energy 
sources for, or energy efficiency or energy-conserving im-
provements or features of, the property.’’. 
(c) GUIDELINES
FOR APPRAISING PHOTOVOLTAIC 
MEASURES
AND TRAINING
OF APPRAISERS.—Section 
1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended 
by adding at the end the following new subsection: 
‘‘(g) GUIDELINES FOR APPRAISING PHOTOVOLTAIC 
MEASURES AND TRAINING OF APPRAISERS.—The Ap-
praisal Subcommittee shall, in consultation with the Sec-
retary of Housing and Urban Development, the Federal 
National Mortgage Association, and the Federal Home 
Loan Mortgage Corporation, establish specific guidelines 
for— 
‘‘(1) appraising off- and on-grid photovoltaic 
measures for compliance with the appraisal stand-
ards prescribed pursuant to section 1110(2);
653 
‘‘(2) requirements under section 1116(f) for 
certification of State certified real estate appraisers 
and for State licensing of State licensed appraisers, 
to ensure that appraisers consider, and are qualified 
to consider, such photovoltaic measures in deter-
mining the value of a property; and 
‘‘(3) training of appraisers to meet the require-
ments established pursuant to paragraph (2) of this 
subsection.’’. 
SEC. 299B. HOUSING ASSISTANCE COUNCIL. 
The Secretary shall require the Housing Assistance 
Council— 
(1) to encourage each organization that receives 
assistance from the Council with any amounts made 
available from the Secretary to provide that any 
structures and buildings developed or assisted under 
projects, programs, and activities funded with such 
amounts complies with the energy efficiency stand-
ards under section 284(a) of this subtitle; and 
(2) to establish incentives to encourage each 
such organization to provide that any such struc-
tures and buildings comply with the energy effi-
ciency and conservation standards, and the green 
building standards, under section 284(b) of such 
Act.
654 
SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOP-
MENT ASSISTANCE. 
The Secretary shall— 
(1) require each tribe, agency, organization, 
corporation, and other entity that receives any as-
sistance from the Office of Rural Housing and Eco-
nomic Development of the Department of Housing 
and Urban Development to provide that any struc-
tures and buildings developed or assisted under ac-
tivities funded with such amounts complies with the 
energy efficiency standards under section 284(a) of 
this subtitle; and 
(2) establish incentives to encourage each such 
tribe, agency, organization, corporation, and other 
entity to provide that any such structures and build-
ings comply with the enhanced energy efficiency and 
conservation standards, and the green building 
standards, under section 284(b) of such Act. 
SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO 
CARRY OUT RENEWABLE ENERGY SOURCES 
ACTIVITIES. 
(a) ESTABLISHMENT
OF FUND.—There is estab-
lished in the Treasury of the United States a fund, to be 
known as the ‘‘Alternative Energy Sources State Loan 
Fund’’. 
(b) EXPENDITURES.—
655 
(1) IN GENERAL.—Subject to paragraph (2), on 
request by the Secretary, the Secretary of the Treas-
ury shall transfer from the Fund to the Secretary 
such amounts as the Secretary determines are nec-
essary to provide loans under subsection (c)(1). 
(2) 
ADMINISTRATIVE
EXPENSES.—Of 
the 
amounts in the Fund, not more than 5 percent shall 
be available for each fiscal year to pay the adminis-
trative expenses of the Department of Housing and 
Urban Development to carry out this section. 
(c) LOANS TO STATES AND INDIAN TRIBES.— 
(1) IN
GENERAL.—The Secretary shall use 
amounts in the Fund to provide loans to States and 
Indian tribes to provide incentives to owners of sin-
gle-family and multifamily housing, commercial 
properties, and public buildings to provide— 
(A) renewable energy sources for such 
structures, such as wind, wave, solar, biomass, 
or geothermal energy sources, including incen-
tives to companies and business to change their 
source of energy to such renewable energy 
sources and for changing the sources of energy 
for public buildings to such renewable energy 
sources;
656 
(B) energy efficiency and energy con-
serving improvements and features for such 
structures; or 
(C) infrastructure related to the delivery of 
electricity and hot water for structures lacking 
such amenities. 
(2) ELIGIBILITY.—To be eligible to receive a 
loan under this subsection, a State or Indian tribe, 
directly or through an appropriate State or tribal 
agency, shall submit to the Secretary an application 
at such time, in such manner, and containing such 
information as the Secretary may require. 
(3) CRITERIA FOR APPROVAL.—The Secretary 
may approve an application of a State or Indian 
tribe under paragraph (2) only if the Secretary de-
termines that the State or tribe will use the funds 
from the loan under this subsection to carry out a 
program to provide incentives described in para-
graph (1) that— 
(A) requires that any such renewable en-
ergy sources, and energy efficiency and energy 
conserving improvements and features, devel-
oped pursuant to assistance under the program 
result in compliance of the structure so im-
657 
proved with energy efficiency requirements de-
termined by the Secretary; and 
(B) includes such compliance and audit re-
quirements as the Secretary determines are nec-
essary to ensure that the program is operated 
in a sound and effective manner. 
(4) PREFERENCE.—In making loans during 
each fiscal year, the Secretary shall give preference 
to States and Indian tribes that have not previously 
received a loan under this subsection. 
(5) MAXIMUM
AMOUNT.—The aggregate out-
standing principal amount from loans under this 
subsection to any single State or Indian tribe may 
not exceed $500,000,000. 
(6) LOAN TERMS.—Each loan under this sub-
section shall have a term to maturity of not more 
than 10 years and shall bear interest at annual rate, 
determined by the Secretary, that shall not exceed 
interest rate charged by the Federal Reserve Bank 
of New York to commercial banks and other deposi-
tory institutions for very short-term loans under the 
primary credit program, as most recently published 
in the Federal Reserve Statistical Release on se-
lected interest rates (daily or weekly), and commonly 
referred to as the H.15 release, preceding the date
658 
of a determination for purposes of applying this 
paragraph. 
(7) LOAN
REPAYMENT.—The Secretary shall 
require full repayment of each loan made under this 
section. 
(d) INVESTMENT OF AMOUNTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall invest such amounts in the Fund that are 
not, in the judgment of the Secretary of the Treas-
ury, required to meet needs for current withdrawals. 
(2) OBLIGATIONS OF UNITED STATES.—Invest-
ments may be made only in interest-bearing obliga-
tions of the United States. 
(e) REPORTS.— 
(1) REPORTS TO SECRETARY.—For each year 
during the term of a loan made under subsection 
(c), the State or Indian tribe that received the loan 
shall submit to the Secretary a report describing the 
State or tribal alternative energy sources program 
for which the loan was made and the activities con-
ducted under the program using the loan funds dur-
ing that year. 
(2) REPORT
TO
CONGRESS.—Not later than 
September 30 of each year that loans made under 
subsection (c) are outstanding, the Secretary shall
659 
submit a report to the Congress describing the total 
amount of such loans provided under subsection (c) 
to each eligible State and Indian tribe during the fis-
cal year ending on such date, and an evaluation on 
effectiveness of the Fund. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Fund 
$5,000,000,000. 
(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given such term in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103). 
(2) STATE.—The term ‘‘State’’ means each of 
the several States, the Commonwealth of Puerto 
Rico, the District of Columbia, the Commonwealth 
of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa, the Trust Territories of 
the Pacific, or any other possession of the United 
States. 
SEC. 299E. GREEN BANKING CENTERS. 
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 8 
of the Federal Deposit Insurance Act (12 U.S.C. 1818)
660 
is amended by adding at the end the following new sub-
section: 
‘‘(x) ‘GREEN BANKING’ CENTERS.— 
‘‘(1) IN GENERAL.—The Federal banking agen-
cies shall prescribe guidelines encouraging the estab-
lishment and maintenance of ‘green banking’ centers 
by insured depository institutions to provide any 
consumer who seeks information on obtaining a 
mortgage, home improvement loan, home equity 
loan, or renewable energy lease with additional infor-
mation on— 
‘‘(A) obtaining an home energy rating or 
audit for the residence for which such mortgage 
or loan is sought; 
‘‘(B) obtaining financing for cost-effective 
energy-saving improvements to such property; 
and 
‘‘(C) obtaining beneficial terms for any 
mortgage or loan, or qualifying for a larger 
mortgage or loan, secured by a residence which 
meets or will meet energy efficiency standards. 
‘‘(2) INFORMATION AND REFERRALS.—The in-
formation made available to consumers under para-
graph (1) may include—
661 
‘‘(A) information on obtaining a home en-
ergy rating and contact information on quali-
fied energy raters in the area of the residence; 
‘‘(B) information on the secondary market 
guidelines that permit lenders to provide more 
favorable terms by allowing lenders to increase 
the ratio on debt-to-income requirements or to 
use the projected utility savings as a compen-
sating factor; 
‘‘(C) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs, 
grants, or loans offered by the Secretary of 
Housing and Urban Development, including the 
Energy Efficient Mortgage Program; 
‘‘(D) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs, 
grants, or loans offered for qualified military 
personal, reservists, and veterans by the Sec-
retary of Veterans Affairs; 
‘‘(E) information about, and contact infor-
mation for, the Office of Efficiency and Renew-
able Energy at the Department of Energy, in-
cluding the weatherization assistance program;
662 
‘‘(F) information about, and contact infor-
mation for, the Energy Star Program of the 
Environmental Protection Agency; 
‘‘(G) information from, and contact infor-
mation for, the Federal Citizen Information 
Center of the General Services Administration 
on energy-efficient mortgages and loans, home 
energy rating systems, and the availability of 
energy-efficient mortgage information from a 
variety of Federal agencies; and 
‘‘(H) such other information as the agen-
cies or the insured depository institution may 
determine to be appropriate or useful.’’. 
(b) INSURED CREDIT UNIONS.—Section 206 of the 
Federal Credit Union Act (12 U.S.C. 1786) is amended 
by adding at the end the following new subsection: 
‘‘(x) ‘GREEN BANKING’ CENTERS.— 
‘‘(1) IN GENERAL.—The Board shall prescribe 
guidelines encouraging the establishment and main-
tenance of ‘green banking’ centers by insured credit 
unions to provide any member who seeks informa-
tion on obtaining a mortgage, home improvement 
loan, home equity loan, or renewable energy lease 
with additional information on—
663 
‘‘(A) obtaining an home energy rating or 
audit for the residence for which such mortgage 
or loan is sought; 
‘‘(B) obtaining financing for cost-effective 
energy-saving improvements to such property; 
and 
‘‘(C) obtaining beneficial terms for any 
mortgage or loan, or qualifying for a larger 
mortgage or loan, secured by a residence which 
meets or will meet energy efficiency standards. 
‘‘(2) INFORMATION AND REFERRALS.—The in-
formation made available to members under para-
graph (1) may include— 
‘‘(A) information on obtaining a home en-
ergy rating and contact information on quali-
fied energy raters in the area of the residence; 
‘‘(B) information on the secondary market 
guidelines that permit lenders to provide more 
favorable terms by allowing lenders to increase 
the ratio on debt-to-income requirements or to 
use the projected utility savings as a compen-
sating factor; 
‘‘(C) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs,
664 
grants, or loans offered by the Secretary of 
Housing and Urban Development, including the 
Energy Efficient Mortgage Program; 
‘‘(D) information including eligibility infor-
mation about, and contact information for, any 
conservation or renewable energy programs, 
grants, or loans offered for qualified military 
personal, reservists, and veterans by the Sec-
retary of Veterans Affairs; 
‘‘(E) information about, and contact infor-
mation for, the Office of Efficiency and Renew-
able Energy at the Department of Energy, in-
cluding the weatherization assistance program; 
‘‘(F) information from, and contact infor-
mation for, the Federal Citizen Information 
Center of the General Services Administration 
on energy-efficient mortgages and loans, home 
energy rating systems, and the availability of 
energy-efficient mortgage information from a 
variety of Federal agencies; and 
‘‘(G) such other information as the Board 
or the insured credit union may determine to be 
appropriate or useful.’’.
665 
SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORD-
ABLE MORTGAGES. 
(a) STUDY.—The Comptroller General of the United 
States shall periodically, as necessary to comply with sub-
section (b), examine the impact of this subtitle and the 
amendments made by this subtitle on the availability of 
affordable mortgages in various areas throughout the 
United States, including cities having older infrastructure 
and limited space for the development of new housing. 
(b) TRIENNIAL REPORTS.—The Comptroller General 
shall submit a report once every 3 years to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate that shall include— 
(1) a detailed statement of the most recent 
findings pursuant to subsection (a); and 
(2) if the Comptroller General finds that this 
subtitle or the amendments made by this subtitle 
have directly or indirectly resulted in consequences 
that limit the availability or affordability of mort-
gages in any area or areas within the United States, 
including any city having older infrastructure and 
limited space for the development of new housing, 
any recommendations for any additional actions at 
the Federal, State, or local levels that the Comp-
666 
troller General considers necessary or appropriate to 
mitigate such effects. 
The first report under this subsection shall be submitted 
not later than the expiration of the 3-year period begin-
ning on the date of the enactment of this Act. 
SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT. 
(a) COLLECTION OF INFORMATION BY HUD.—The 
Secretary of Housing and Urban Development shall obtain 
from each public housing agency, by such time as may 
be necessary to comply with the reporting requirement 
under subsection (b), information regarding the energy 
costs for public housing administered or operated by the 
agency. For each public housing agency, such information 
shall include the monthly energy costs associated with 
each separate building and development of the agency, for 
the most recently completed 12-month period for which 
such information is available, and such other information 
as the Secretary determines is appropriate in determining 
which public housing buildings and developments are most 
in need of repairs and improvements to reduce energy 
needs and costs and become more energy efficient. 
(b) REPORT.—Not later than the expiration of the 
12-month period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Develop-
667 
ment shall submit a report to the Congress setting forth 
the information collected pursuant to subsection (a). 
SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RE-
NEWABLE ENERGY LEASE INSTRUMENTS. 
(a) PURPOSES.—The purposes of this section are— 
(1) to encourage residential use of renewable 
energy systems by minimizing up-front costs and 
providing immediate utility cost savings to con-
sumers through leasing of such systems to home-
owners; 
(2) to reduce carbon emissions and the use of 
nonrenewable resources; 
(3) to encourage energy-efficient residential 
construction and rehabilitation; 
(4) to encourage the use of renewable resources 
by homeowners; 
(5) to minimize the impact of development on 
the environment; 
(6) to reduce consumer utility costs; and 
(7) to encourage private investment in the 
green economy. 
(b) RESIDUAL VALUE
OF RENEWABLE ENERGY 
ASSET.—The Secretary of Housing and Urban Develop-
ment shall establish a means of determining the residual 
value of a renewable energy asset such that a secondary
668 
market for residential renewable energy lease instruments 
may be facilitated. Such means may include, without limi-
tation, the calculation of residual value based on the net 
present value of projected future energy production of the 
renewable energy asset. 
SEC. 299I. GREEN GUARANTEES. 
(a) AUTHORITY TO GUARANTEE ‘‘GREEN PORTION’’ 
OF ELIGIBLE MORTGAGES.— 
(1) IN GENERAL.—The Secretary of Housing 
and Urban Development may make commitments to 
guarantee under this section and may guarantee, the 
repayment of the portions of the principal obliga-
tions of eligible mortgages that are used to finance 
eligible sustainable building elements for the housing 
that is subject to the mortgage. 
(2) AMOUNT
OF
GUARANTEE.—A guarantee 
under this section by the Secretary in connection 
with an eligible mortgage shall not exceed a percent-
age of the green portion (as such term is defined in 
subsection (g)) of the mortgage, as shall be estab-
lished by the Secretary and may be established on 
a regional basis as the Secretary determines appro-
priate.
669 
(b) ELIGIBLE MORTGAGES.—To be considered an eli-
gible mortgage for purposes of this section, a mortgage 
shall comply with all of the following requirements: 
(1) ACQUISITION OR CONSTRUCTION OF HOUS-
ING.—The mortgage shall be made for the acquisi-
tion or construction of single- or multifamily housing 
and repayment of the mortgage shall be secured by 
an interest in such housing. 
(2) FINANCING
OF
ELIGIBLE
SUSTAINABLE 
BUILDING ELEMENTS THROUGH GREEN PORTION OF 
MORTGAGE.—A portion of the principal obligation of 
the mortgage, which meets the requirements under 
subsection (c), shall be used only for financing the 
provision of eligible sustainable building elements for 
the housing for which the mortgage was made. 
(3) MAXIMUM MORTGAGE AMOUNT.—The prin-
cipal obligation of the mortgage (including the eligi-
ble portion of such mortgage, and such initial service 
charges, appraisal, inspection, and other fees as the 
Secretary shall approve) may not exceed the fol-
lowing amounts: 
(A) SINGLE-FAMILY HOUSING.—Such dol-
lar amounts for single-family housing as the 
Secretary shall establish, which may be estab-
lished on the basis of the number of dwelling
670 
units in the housing, as the Secretary considers 
appropriate. 
(B) MULTIFAMILY HOUSING.—Such dollar 
amounts for multifamily housing as the Sec-
retary shall establish, which may be established 
on the basis of the number of dwelling units in 
the housing and the number of bedrooms in 
such dwelling units, as the Secretary considers 
appropriate. 
(4) REPAYMENT.—The mortgage meets such 
requirements as the Secretary shall establish to en-
sure that there is a reasonable prospect of repay-
ment of the principal and interest on the obligation 
by the mortgagor. 
(5) MORTGAGE
TERMS.—The mortgage shall 
meet such requirements with respect to loan-to-value 
ratio, mortgagor credit scores, debt-to-income ratio, 
and other underwriting standards, term to maturity, 
interest rates and amortization, including amortiza-
tion of the green portion of the mortgage, and other 
mortgage terms as the Secretary shall establish. 
(c) LIMITATIONS ON GREEN PORTION OF MORT-
GAGE.—The requirements under this subsection with re-
spect to the green portion of an eligible mortgage are as 
follows:
671 
(1) PERCENTAGE
LIMITATION.—Such portion 
shall not exceed, in the case of single-family or mul-
tifamily housing, 10 percent of the total principal 
obligation of the mortgage. 
(2) DOLLAR AMOUNT LIMITATION.—Such por-
tion shall not exceed— 
(A) in the case of single-family housing, 
such maximum dollar amount limitation as the 
Secretary shall establish, which may be estab-
lished on the basis of the number of dwelling 
units in the housing, as the Secretary considers 
appropriate; and 
(B) in the case of multifamily housing, 
such maximum dollar amount limitation as the 
Secretary shall establish, which limitation may 
be established on the basis of the number of 
dwelling units in the housing and the number 
of bedrooms in such dwelling units, as the Sec-
retary considers appropriate. 
(3) COST-EFFECTIVENESS
LIMITATION.—Such 
portion shall not exceed the total present value of 
the savings (as determined in accordance with sub-
section (d)) attributable to the incorporation of the 
eligible sustainable building elements to be financed
672 
with the green portion of the mortgage that are to 
be realized over the useful life of such elements. 
(d) 
ELIGIBLE
SUSTAINABLE
BUILDING
ELE-
MENTS.—The Secretary may not guarantee any eligible 
mortgage under this section unless the mortgagor has 
demonstrated, in accordance with such requirements as 
the Secretary shall establish, the amount of savings attrib-
utable to incorporation of the sustainable building ele-
ments to be financed with the green portion of the mort-
gage, as measured by the National Green Building Stand-
ard for all residential construction developed by the Na-
tional Association of Home Builders and the U.S. Green 
Building Council, and approved by the American National 
Standards Institute, as updated and in effect at the time 
of such demonstration. 
(e) GUARANTEE FEE.— 
(1) ASSESSMENT AND COLLECTION.—The Sec-
retary shall assess and collect fees for guarantees 
under this section in amounts that the Secretary de-
termines are sufficient to cover the costs (as such 
term is defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) of such guar-
antees. 
(2) AVAILABILITY.—Fees collected under this 
subsection shall be deposited by the Secretary in the
674 
there was no default by the borrower in 
the payment of interest or principal or that 
the default has been remedied. 
(B) FORBEARANCE.—Nothing in this para-
graph precludes any forbearance by the holder 
of an eligible mortgage for the benefit of the 
mortgagor which may be agreed upon by the 
parties to the mortgage and approved by the 
Secretary. 
(2) SUBROGATION.— 
(A) IN GENERAL.—If the Secretary makes 
a payment under paragraph (1), the Secretary 
shall be subrogated to the rights of the recipi-
ent of the payment as specified in the guar-
antee or related agreements including, if appro-
priate, the authority (notwithstanding any other 
provision of law)— 
(i) to complete, maintain, operate, 
lease, or otherwise dispose of any property 
acquired pursuant to such guarantee or re-
lated agreements; or 
(ii) to permit the mortgagor, pursuant 
to an agreement with the Secretary, to 
continue to occupy the property subject to
675 
the mortgage, if the Secretary determines 
such occupancy to be appropriate. 
(B) SUPERIORITY OF RIGHTS.—The rights 
of the Secretary, with respect to any property 
acquired pursuant to a guarantee or related 
agreements, shall be superior to the rights of 
any other person with respect to the property. 
(C) TERMS
AND
CONDITIONS.—A guar-
antee agreement shall include such detailed 
terms and conditions as the Secretary deter-
mines appropriate to protect the interests of the 
United States in the case of default. 
(3) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
payment of all guarantees issued under this section 
with respect to principal and interest. 
(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means a mortgage that meets the re-
quirements under subsection (b). 
(2) GREEN PORTION.—The term ‘‘green por-
tion’’ means, with respect to an eligible mortgage, 
the portion of the mortgage principal referred to in 
subsection (b)(2) that is attributable, as determined
676 
in accordance with regulations issued by the Sec-
retary, to the increased costs incurred in financing 
provision of sustainable building elements for the 
housing for which the mortgage was made, as com-
pared to the costs that would have been incurred in 
financing the provision of other building elements 
for the housing for the same purposes that are com-
monly or conventionally used but are not sustainable 
building elements. 
(3) GUARANTEED PORTION.—The term ‘‘guar-
anteed portion’’ means, with respect to an eligible 
mortgage guaranteed under this section, the green 
portion of the mortgage that is so guaranteed. 
(4) MORTGAGE.—The term ‘‘mortgage’’ has the 
meaning given such term in section 201 of the Na-
tional Housing Act (12 U.S.C. 1707). 
(5) MULTIFAMILY HOUSING.—The term ‘‘multi-
family housing’’ means a residential property con-
sisting of five or more dwelling units. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(7) SINGLE-FAMILY HOUSING.—The term ‘‘sin-
gle-family housing’’ means a residential property 
consisting of one to four dwelling units.
677 
(8) SUSTAINABLE
BUILDING
ELEMENT.—The 
term ‘‘sustainable building element’’ means such 
building elements, as the Secretary shall define, that 
have energy efficiency or environmental sustain-
ability qualities that are superior to such qualities 
for other building elements for the same purposes 
that are commonly or conventionally used. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for costs (as such term is 
defined in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a) of guarantees under this section 
$500,000,000 for each of fiscal years 2010 through 2014. 
(i) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out this section. 
TITLE III—REDUCING GLOBAL 
WARMING POLLUTION 
SEC. 301. SHORT TITLE. 
This title, and sections 112, 116, 221, 222, 223, and 
401 of this Act, and the amendments made by this title 
and those sections, may be cited as the ‘‘Safe Climate 
Act’’.
678 
Subtitle A—Reducing Global 
Warming Pollution 
SEC. 311. REDUCING GLOBAL WARMING POLLUTION. 
The Clean Air Act (42 U.S.C. and following) is 
amended by adding after title VI the following new title: 
‘‘TITLE VII—GLOBAL WARMING 
POLLUTION REDUCTION PRO-
GRAM 
‘‘PART A—GLOBAL WARMING POLLUTION 
REDUCTION GOALS AND TARGETS 
‘‘SEC. 701. FINDINGS AND PURPOSE. 
‘‘(a) FINDINGS.—The Congress finds as follows: 
‘‘(1) Global warming poses a significant threat 
to the national security, economy, public health and 
welfare, and environment of the United States, as 
well as of other nations. 
‘‘(2) Reviews of scientific studies, including by 
the Intergovernmental Panel on Climate Change and 
the National Academy of Sciences, demonstrate that 
global warming is the result of the combined anthro-
pogenic greenhouse gas emissions from numerous 
sources of all types and sizes. Each increment of 
emission, when combined with other emissions, 
causes or contributes materially to the acceleration 
and extent of global warming and its adverse effects
679 
for the lifetime of such gas in the atmosphere. Ac-
cordingly, controlling emissions in small as well as 
large amounts is essential to prevent, slow the pace 
of, reduce the threats from, and mitigate global 
warming and its adverse effects. 
‘‘(3) Because they induce global warming, 
greenhouse gas emissions cause or contribute to in-
juries to persons in the United States, including— 
‘‘(A) adverse health effects such as disease 
and loss of life; 
‘‘(B) displacement of human populations; 
‘‘(C) damage to property and other inter-
ests related to ocean levels, acidification, and 
ice changes; 
‘‘(D) severe weather and seasonal changes; 
‘‘(E) disruption, costs, and losses to busi-
ness, trade, employment, farms, subsistence, 
aesthetic enjoyment of the environment, recre-
ation, culture, and tourism; 
‘‘(F) damage to plants, forests, lands, and 
waters; 
‘‘(G) harm to wildlife and habitat; 
‘‘(H) scarcity of water and the decreased 
abundance of other natural resources;
680 
‘‘(I) worsening of tropospheric air pollu-
tion; 
‘‘(J) substantial threats of similar damage; 
and 
‘‘(K) other harm. 
‘‘(4) That many of these effects and risks of fu-
ture effects of global warming are widely shared 
does not minimize the adverse effects individual per-
sons have suffered, will suffer, and are at risk of 
suffering because of global warming. 
‘‘(5) That some of the adverse and potentially 
catastrophic effects of global warming are at risk of 
occurring and not a certainty does not negate the 
harm persons suffer from actions that increase the 
likelihood, extent, and severity of such future im-
pacts. 
‘‘(6) Nations of the world look to the United 
States for leadership in addressing the threat of and 
harm from global warming. Full implementation of 
the Safe Climate Act is critical to engage other na-
tions in an international effort to mitigate the threat 
of and harm from global warming. 
‘‘(7) Global warming and its adverse effects are 
occurring and are likely to continue and increase in 
magnitude, and to do so at a greater and more
681 
harmful rate, unless the Safe Climate Act is fully 
implemented and enforced in an expeditious manner. 
‘‘(b) PURPOSE.—It is the general purpose of the Safe 
Climate Act to help prevent, reduce the pace of, mitigate, 
and remedy global warming and its adverse effects. To ful-
fill such purpose, it is necessary to— 
‘‘(1) require the timely fulfillment of all govern-
mental acts and duties, both substantive and proce-
dural, and the prompt compliance of covered entities 
with the requirements of the Safe Climate Act; 
‘‘(2) establish and maintain an effective, trans-
parent, and fair market for emission allowances and 
preserve the integrity of the cap on emissions and of 
offset credits; 
‘‘(3) advance the production and deployment of 
clean energy and energy efficiency technologies; and 
‘‘(4) ensure effective enforcement of the Safe 
Climate Act by citizens, States, Indian tribes, and 
all levels of government because each violation of the 
Safe Climate Act is likely to result in an additional 
increment of greenhouse gas emission and will slow 
the pace of implementation of the Safe Climate Act 
and delay the achievement of the goals set forth in 
section 702, and cause or contribute to global warm-
ing and its adverse effects.
682 
‘‘SEC. 702. ECONOMY-WIDE REDUCTION GOALS. 
‘‘The goals of the Safe Climate Act are to reduce 
steadily the quantity of United States greenhouse gas 
emissions such that— 
‘‘(1) in 2012, the quantity of United States 
greenhouse gas emissions does not exceed 97 percent 
of the quantity of United States greenhouse gas 
emissions in 2005; 
‘‘(2) in 2020, the quantity of United States 
greenhouse gas emissions does not exceed 80 percent 
of the quantity of United States greenhouse gas 
emissions in 2005; 
‘‘(3) in 2030, the quantity of United States 
greenhouse gas emissions does not exceed 58 percent 
of the quantity of United States greenhouse gas 
emissions in 2005; and 
‘‘(4) in 2050, the quantity of United States 
greenhouse gas emissions does not exceed 17 percent 
of the quantity of United States greenhouse gas 
emissions in 2005. 
‘‘SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES. 
‘‘(a) IN GENERAL.—The regulations issued under 
section 721 shall cap and reduce annually the greenhouse 
gas emissions of capped sources each calendar year begin-
ning in 2012 such that—
683 
‘‘(1) in 2012, the quantity of greenhouse gas 
emissions from capped sources does not exceed 97 
percent of the quantity of greenhouse gas emissions 
from such sources in 2005; 
‘‘(2) in 2020, the quantity of greenhouse gas 
emissions from capped sources does not exceed 83 
percent of the quantity of greenhouse gas emissions 
from such sources in 2005; 
‘‘(3) in 2030, the quantity of greenhouse gas 
emissions from capped sources does not exceed 58 
percent of the quantity of greenhouse gas emissions 
from such sources in 2005; and 
‘‘(4) in 2050, the quantity of greenhouse gas 
emissions from capped sources does not exceed 17 
percent of the quantity of greenhouse gas emissions 
from such sources in 2005. 
‘‘(b) DEFINITION.—For purposes of this section, the 
term ‘greenhouse gas emissions from such sources in 
2005’ means emissions to which section 722 would have 
applied if the requirements of this title for the specified 
year had been in effect for 2005. 
‘‘SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS. 
‘‘For the purposes of decreasing the likelihood of cat-
astrophic climate change, preserving tropical forests, 
building capacity to generate offset credits, and facili-
684 
tating international action on global warming, the Admin-
istrator shall set aside the percentage specified in section 
781 of the quantity of emission allowances established 
under section 721(a) for each year, to be used to achieve 
a reduction of greenhouse gas emissions from deforest-
ation in developing countries in accordance with part E. 
In 2020, activities supported under part E shall provide 
greenhouse gas reductions in an amount equal to an addi-
tional 10 percentage points of reductions from United 
States greenhouse gas emissions in 2005. The Adminis-
trator shall distribute these allowances with respect to ac-
tivities in countries that enter into and implement agree-
ments or arrangements relating to reduced deforestation 
as described in section 754(a)(2). 
‘‘SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS. 
‘‘(a) IN GENERAL.—The Administrator shall, in con-
sultation with appropriate Federal agencies, submit to 
Congress a report not later than July 1, 2013, and every 
4 years thereafter, that includes— 
‘‘(1) an analysis of key findings based on the 
latest scientific information and data relevant to 
global climate change; 
‘‘(2) an analysis of capabilities to monitor and 
verify greenhouse gas reductions on a worldwide
685 
basis, including for the United States, as required 
under the Safe Climate Act; and 
‘‘(3) an analysis of the status of worldwide 
greenhouse gas reduction efforts, including imple-
mentation of the Safe Climate Act and other poli-
cies, both domestic and international, for reducing 
greenhouse gas emissions, preventing dangerous at-
mospheric concentrations of greenhouse gases, pre-
venting significant irreversible consequences of cli-
mate change, and reducing vulnerability to the im-
pacts of climate change. 
‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 
shall not apply to the first report submitted under such 
subsection. 
‘‘(c) LATEST SCIENTIFIC INFORMATION.—The anal-
ysis required under subsection (a)(1) shall— 
‘‘(1) address existing scientific information and 
reports, considering, to the greatest extent possible, 
the most recent assessment report of the Intergov-
ernmental Panel on Climate Change, reports by the 
United States Global Change Research Program, the 
Natural Resources Climate Change Adaptation 
Panel established under section 475 of the American 
Clean Energy and Security Act of 2009, and Fed-
687 
‘‘(D) major climate forcing factors, such as 
aerosols; 
‘‘(E) global average temperature, expressed 
as seasonal and annual averages in land, ocean, 
and land-plus-ocean averages; and 
‘‘(F) sea level rise; 
‘‘(3) assess the current and potential impacts of 
global climate change on— 
‘‘(A) human populations, including impacts 
on public health, economic livelihoods, subsist-
ence, human infrastructure, and displacement 
or permanent relocation due to flooding, severe 
weather, extended drought, erosion, or other 
ecosystem changes; 
‘‘(B) freshwater systems, including water 
resources for human consumption and agri-
culture and natural and managed ecosystems, 
flood and drought risks, and relative humidity; 
‘‘(C) the carbon cycle, including impacts 
related to the thawing of permafrost, the fre-
quency and intensity of wildfire, and terrestrial 
and ocean carbon sinks; 
‘‘(D) ecosystems and animal and plant 
populations, including impacts on species abun-
dance, phenology, and distribution;
688 
‘‘(E) oceans and ocean ecosystems, includ-
ing effects on sea level, ocean acidity, ocean 
temperatures, coral reefs, ocean circulation, 
fisheries, and other indicators of ocean eco-
system health; 
‘‘(F) the cryosphere, including effects on 
ice sheet mass balance, mountain glacier mass 
balance, and sea-ice extent and volume; 
‘‘(G) changes in the intensity, frequency, 
or distribution of severe weather events, includ-
ing precipitation, tropical cyclones, tornadoes, 
and severe heat waves; 
‘‘(H) agriculture and forest systems; and 
‘‘(I) any other indicators the Administrator 
deems appropriate; 
‘‘(4) summarize any significant socio-economic 
impacts of climate change in the United States, in-
cluding the territories of the United States, drawing 
on work by Federal agencies and the academic lit-
erature, including impacts on— 
‘‘(A) public health; 
‘‘(B) economic livelihoods and subsistence; 
‘‘(C) displacement or permanent relocation 
due to flooding, severe weather, extended 
drought, erosion, or other ecosystem changes;
689 
‘‘(D) 
human 
infrastructure, 
including 
coastal infrastructure vulnerability to extreme 
events and sea level rise, river floodplain infra-
structure, and sewer and water management 
systems; 
‘‘(E) agriculture and forests, including ef-
fects on potential growing season, distribution, 
and yield; 
‘‘(F) water resources for human consump-
tion, agriculture and natural and managed eco-
systems, flood and drought risks, and relative 
humidity; 
‘‘(G) energy supply and use; and 
‘‘(H) transportation; 
‘‘(5) in assessing risks and impacts, use a risk 
management framework, including both qualitative 
and quantitative measures, to assess the observed 
and projected impacts of current and future climate 
change, accounting for— 
‘‘(A) both monetized and non-monetized 
losses; 
‘‘(B) potential nonlinear, abrupt, or essen-
tially irreversible changes in the climate system; 
‘‘(C) potential nonlinear increases in the 
cost of impacts;
690 
‘‘(D) potential low-probability, high impact 
events; and 
‘‘(E) whether impacts are transitory or es-
sentially permanent; and 
‘‘(6) based on the findings of the Administrator 
under this section, as well as assessments produced 
by the Intergovernmental Panel on Climate Change, 
the United States Global Change Research program, 
and other relevant scientific entities— 
‘‘(A) describe increased risks to natural 
systems and society that would result from an 
increase in global average temperature 3.6 de-
grees Fahrenheit (2 degrees Celsius) above the 
pre-industrial average or an increase in atmos-
pheric greenhouse gas concentrations above 450 
parts per million carbon dioxide equivalent; and 
‘‘(B) identify and assess— 
‘‘(i) significant residual risks not 
avoided by the thresholds described in sub-
paragraph (A); 
‘‘(ii) alternative thresholds or targets 
that may more effectively limit the risks 
identified pursuant to clause (i); and 
‘‘(iii) thresholds above those described 
in subparagraph (A) which significantly in-
691 
crease the risk of certain impacts or render 
them essentially permanent. 
‘‘(d) STATUS OF MONITORING AND VERIFICATION 
CAPABILITIES TO EVALUATE GREENHOUSE GAS REDUC-
TION EFFORTS.—The analysis required under subsection 
(a)(2) shall evaluate the capabilities of the monitoring, re-
porting, and verification systems used to quantify progress 
in achieving reductions in greenhouse gas emissions both 
globally and in the United States (as described in section 
702), including— 
‘‘(1) quantification of emissions and emission 
reductions by entities participating in the cap and 
trade program under this title; 
‘‘(2) quantification of emissions and emission 
reductions by entities participating in the offset pro-
gram under this title; 
‘‘(3) quantification of emission and emissions 
reductions by entities regulated by performance 
standards; 
‘‘(4) quantification of aggregate net emissions 
and emissions reductions by the United States; and 
‘‘(5) quantification of global changes in net 
emissions and in sources and sinks of greenhouse 
gases.
692 
‘‘(e) STATUS OF GREENHOUSE GAS REDUCTION EF-
FORTS.—The analysis required under subsection (a)(3) 
shall address— 
‘‘(1) whether the programs under Safe Climate 
Act and other Federal statutes are resulting in suffi-
cient United States greenhouse gas emissions reduc-
tions to meet the emissions reduction goals described 
in section 702, taking into account the use of off-
sets; and 
‘‘(2) whether United States actions, taking into 
account international actions, commitments, and 
trends, and considering the range of plausible emis-
sions scenarios, are sufficient to avoid— 
‘‘(A) atmospheric greenhouse gas con-
centrations above 450 parts per million carbon 
dioxide equivalent; 
‘‘(B) global average surface temperature 
3.6 degrees Fahrenheit (2 degrees Celsius) 
above the pre-industrial average, or such other 
temperature thresholds as the Administrator 
deems appropriate; and 
‘‘(C) other temperature or greenhouse gas 
thresholds identified pursuant to subsection 
(c)(6)(B). 
‘‘(f) RECOMMENDATIONS.—
693 
‘‘(1) 
LATEST
SCIENTIFIC
INFORMATION.— 
Based on the analysis described in subsection (a)(1), 
each report under subsection (a) shall identify ac-
tions that could be taken to— 
‘‘(A) improve the characterization of 
changes in the earth-climate system and im-
pacts of global climate change; 
‘‘(B) better inform decision making and 
actions related to global climate change; 
‘‘(C) mitigate risks to natural and social 
systems; and 
‘‘(D) design policies to better account for 
climate risks. 
‘‘(2) 
MONITORING, 
REPORTING
AND 
VERIFICATION.—Based on the analysis described in 
subsection (a)(2), each report under subsection (a) 
shall identify key gaps in measurement, reporting, 
and verification capabilities and make recommenda-
tions to improve the accuracy and reliability of those 
capabilities. 
‘‘(3) STATUS OF GREENHOUSE GAS REDUCTION 
EFFORTS.—Based on the analysis described in sub-
section (a)(3), taking into account international ac-
tions, commitments, and trends, and considering the
694 
range of plausible emissions scenarios, each report 
under subsection (a) shall identify— 
‘‘(A) the quantity of additional reductions 
required to meet the emissions reduction goals 
in section 702; 
‘‘(B) the quantity of additional reductions 
in global greenhouse gas emissions needed to 
avoid 
the 
concentration 
and 
temperature 
thresholds identified in subsection (e); and 
‘‘(C) possible strategies and approaches for 
achieving additional reductions. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary. 
‘‘SEC. 706. NATIONAL ACADEMY REVIEW. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this title, the Administrator shall 
offer to enter into a contract with the National Academy 
of Sciences (in this section referred to as the ‘Academy’) 
under which the Academy shall, not later than July 1, 
2014, and every 4 years thereafter, submit to Congress 
and the Administrator a report that includes— 
‘‘(1) a review of the most recent report and rec-
ommendations issued under section 705; and
695 
‘‘(2) an analysis of technologies to achieve re-
ductions in greenhouse gas emissions. 
‘‘(b) FAILURE TO ISSUE A REPORT.—In the event 
that the Administrator has not issued all or part of the 
most recent report required under section 705, the Acad-
emy shall conduct its own review and analysis of the re-
quired information. 
‘‘(c) TECHNOLOGICAL INFORMATION.—The analysis 
required under subsection (a)(2) shall— 
‘‘(1) review existing technological information 
and reports, including the most recent reports by the 
Department of Energy, the United States Global 
Change Research Program, the Intergovernmental 
Panel on Climate Change, and the International En-
ergy Agency and any other relevant information on 
technologies or practices that reduce or limit green-
house gas emissions; 
‘‘(2) include the participation of technical ex-
perts from relevant private industry sectors; 
‘‘(3) review the current and future projected de-
ployment of technologies and practices in the United 
States that reduce or limit greenhouse gas emis-
sions, including— 
‘‘(A) technologies for capture and seques-
tration of greenhouse gases;
696 
‘‘(B) technologies to improve energy effi-
ciency; 
‘‘(C) low- or zero-greenhouse gas emitting 
energy technologies; 
‘‘(D) low- or zero-greenhouse gas emitting 
fuels; 
‘‘(E) biological sequestration practices and 
technologies; and 
‘‘(F) any other technologies the Academy 
deems relevant; and 
‘‘(4) review and compare the emissions reduc-
tion potential, commercial viability, market penetra-
tion, investment trends, and deployment of the tech-
nologies described in paragraph (3), including— 
‘‘(A) the need for additional research and 
development, including publicly funded research 
and development; 
‘‘(B) the extent of commercial deployment, 
including, where appropriate, a comparison to 
the cost and level of deployment of conventional 
fossil fuel-fired energy technologies and devices; 
and 
‘‘(C) an evaluation of any substantial tech-
nological, legal, or market-based barriers to 
commercial deployment.
697 
‘‘(d) RECOMMENDATIONS.— 
‘‘(1) 
LATEST
SCIENTIFIC
INFORMATION.— 
Based on the review described in subsection (a)(1), 
the Academy shall identify actions that could be 
taken to— 
‘‘(A) improve the characterization of 
changes in the earth-climate system and im-
pacts of global climate change; 
‘‘(B) better inform decision making and 
actions related to global climate change; 
‘‘(C) mitigate risks to natural and social 
systems; 
‘‘(D) design policies to better account for 
climate risks; and 
‘‘(E) improve the accuracy and reliability 
of capabilities to monitor, report, and verify 
greenhouse gas emissions reduction efforts. 
‘‘(2) TECHNOLOGICAL
INFORMATION.—Based 
on the analysis described in subsection (a)(2), the 
Academy shall identify— 
‘‘(A) additional emissions reductions that 
may be possible as a result of technologies de-
scribed in the analysis; 
‘‘(B) barriers to the deployment of such 
technologies; and
698 
‘‘(C) actions that could be taken to speed 
deployment of such technologies. 
‘‘(3) STATUS OF GREENHOUSE GAS REDUCTION 
EFFORTS.—Based on the review described in sub-
section (a)(1), the Academy shall identify— 
‘‘(A) the quantity of additional reductions 
required to meet the emissions reduction goals 
described in section 702; and 
‘‘(B) the quantity of additional reductions 
in global greenhouse gas emissions needed to 
avoid 
the 
concentration 
and 
temperature 
thresholds described in section 705(c)(6)(A) or 
identified pursuant to section 705(c)(6)(B). 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary. 
‘‘SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDA-
TIONS. 
‘‘(a) AGENCY ACTIONS.—The President shall direct 
relevant Federal agencies to use existing statutory author-
ity to take appropriate actions identified in the reports 
submitted under sections 705 and 706, and to address any 
shortfalls identified in such reports, not later than July 
1, 2015, and every 4 years thereafter.
699 
‘‘(b) PLAN.—In the event that the Administrator or 
the National Academy of Sciences has concluded, in the 
most recent report submitted under section 705 or 706 
respectively, that the United States will not achieve the 
necessary domestic greenhouse gas emissions reductions, 
or that global actions will not maintain safe global average 
surface temperature and atmospheric greenhouse gas con-
centration thresholds, the President shall, not later than 
July 1, 2015, and every 4 years thereafter, submit to Con-
gress a plan identifying domestic and international actions 
that will achieve necessary additional greenhouse gas re-
ductions, including any recommendations for legislative 
action. 
‘‘PART B—DESIGNATION AND REGISTRATION OF 
GREENHOUSE GASES 
‘‘SEC. 711. DESIGNATION OF GREENHOUSE GASES. 
‘‘(a) GREENHOUSE GASES.—For purposes of this 
title, the following are greenhouse gases: 
‘‘(1) Carbon dioxide. 
‘‘(2) Methane. 
‘‘(3) Nitrous oxide. 
‘‘(4) Sulfur hexafluoride. 
‘‘(5) Hydrofluorocarbons emitted from a chem-
ical manufacturing process at an industrial sta-
tionary source.
700 
‘‘(6) Any perfluorocarbon. 
‘‘(7) Nitrogen trifluoride. 
‘‘(8) Any other anthropogenic gas designated as 
a greenhouse gas by the Administrator under this 
section. 
‘‘(b) DETERMINATION ON ADMINISTRATOR’S INITIA-
TIVE.—The Administrator shall, by rule— 
‘‘(1) determine whether 1 metric ton of another 
anthropogenic gas makes the same or greater con-
tribution to global warming over 100 years as 1 met-
ric ton of carbon dioxide; 
‘‘(2) determine the carbon dioxide equivalent 
value for each gas with respect to which the Admin-
istrator makes an affirmative determination under 
paragraph (1); 
‘‘(3) for each gas with respect to which the Ad-
ministrator makes an affirmative determination 
under paragraph (1) and that is used as a substitute 
for a class I or class II substance under title VI, de-
termine the extent to which to regulate that gas 
under section 619 and specify appropriate compli-
ance obligations under section 619; 
‘‘(4) designate as a greenhouse gas for purposes 
of this title each gas for which the Administrator 
makes an affirmative determination under para-
701 
graph (1), to the extent that it is not regulated 
under section 619; and 
‘‘(5) specify the appropriate compliance obliga-
tions under this title for each gas designated as a 
greenhouse gas under paragraph (4). 
‘‘(c) PETITIONS
TO DESIGNATE
A GREENHOUSE 
GAS.— 
‘‘(1) IN GENERAL.—Any person may petition 
the Administrator to designate as a greenhouse gas 
any anthropogenic gas 1 metric ton of which makes 
the same or greater contribution to global warming 
over 100 years as 1 metric ton of carbon dioxide. 
‘‘(2) CONTENTS OF PETITION.—The petitioner 
shall provide sufficient data, as specified by rule by 
the Administrator, to demonstrate that the gas is 
likely to be designated as a greenhouse gas and is 
likely to be produced, imported, used, or emitted in 
the United States. To the extent practicable, the pe-
titioner shall also identify producers, importers, dis-
tributors, users, and emitters of the gas in the 
United States. 
‘‘(3) REVIEW AND ACTION BY THE ADMINIS-
TRATOR.—Not later than 90 days after receipt of a 
petition under paragraph (2), the Administrator
702 
shall determine whether the petition is complete and 
notify the petitioner and the public of the decision. 
‘‘(4) ADDITIONAL INFORMATION.—The Admin-
istrator may require producers, importers, distribu-
tors, users, or emitters of the gas to provide infor-
mation on the contribution of the gas to global 
warming over 100 years compared to carbon dioxide. 
‘‘(5) TREATMENT OF PETITION.—For any sub-
stance used as a substitute for a class I or class II 
substance under title VI, the Administrator may 
elect to treat a petition under this subsection as a 
petition to list the substance as a class II, group II 
substance under section 619, and may require the 
petition to be amended to address listing criteria 
promulgated under that section. 
‘‘(6) DETERMINATION.—Not later than 2 years 
after receipt of a complete petition, the Adminis-
trator shall, after notice and an opportunity for com-
ment— 
‘‘(A) issue and publish in the Federal Reg-
ister— 
‘‘(i) a determination that 1 metric ton 
of the gas does not make a contribution to 
global warming over 100 years that is
703 
equal to or greater than that made by 1 
metric ton of carbon dioxide; and 
‘‘(ii) an explanation of the decision; or 
‘‘(B) determine that 1 metric ton of the 
gas makes a contribution to global warming 
over 100 years that is equal to or greater than 
that made by 1 metric ton of carbon dioxide, 
and take the actions described in subsection (b) 
with respect to such gas. 
‘‘(7) GROUNDS
FOR
DENIAL.—The Adminis-
trator may not deny a petition under this subsection 
solely on the basis of inadequate Environmental Pro-
tection Agency resources or time for review. 
‘‘(d) SCIENCE ADVISORY BOARD CONSULTATION.— 
‘‘(1) 
CONSULTATION.—The 
Administrator 
shall— 
‘‘(A) give notice to the Science Advisory 
Board prior to making a determination under 
subsection (b)(1), (c)(6), or (e)(2)(B); 
‘‘(B) consider the written recommendations 
of the Science Advisory Board under paragraph 
(2) regarding the determination; and 
‘‘(C) consult with the Science Advisory 
Board regarding such determination, including
704 
consultation subsequent to receipt of such writ-
ten recommendations. 
‘‘(2) FORMULATION OF RECOMMENDATIONS.— 
Upon receipt of notice under paragraph (1)(A) re-
garding a pending determination under subsection 
(b)(1), (c)(6), or (e)(2)(B), the Science Advisory 
Board shall— 
‘‘(A) formulate recommendations regarding 
such determination, subject to a peer review 
process; and 
‘‘(B) submit such recommendations in 
writing to the Administrator. 
‘‘(e) MANUFACTURING AND EMISSION NOTICES.— 
‘‘(1) NOTICE REQUIREMENT.— 
‘‘(A) IN GENERAL.—Effective 24 months 
after the date of enactment of this title, no per-
son may manufacture or introduce into inter-
state commerce a fluorinated gas, or emit a sig-
nificant quantity, as determined by the Admin-
istrator, of any fluorinated gas that is gen-
erated as a byproduct during the production or 
use of another fluorinated gas, unless— 
‘‘(i) the gas is designated as a green-
house gas under this section or is an
705 
ozone-depleting substance listed as a class 
I or class II substance under title VI; 
‘‘(ii) the Administrator has deter-
mined that 1 metric ton of such gas does 
not make a contribution to global warming 
over 100 years that is equal to or greater 
than that made by 1 metric ton of carbon 
dioxide; or 
‘‘(iii) the person manufacturing or im-
porting the gas for distribution into inter-
state commerce, or emitting the gas, has 
submitted to the Administrator, at least 90 
days before the start of such manufacture, 
introduction into commerce, or emission, a 
notice of such person’s manufacture, intro-
duction into commerce, or emission of such 
gas, and the Administrator has not deter-
mined that that notice or a substantially 
similar notice submitted by that person is 
incomplete. 
‘‘(B) ALTERNATIVE COMPLIANCE.—For a 
gas that is a substitute for a class I or class II 
substance under title VI and either has been 
listed as acceptable for use under section 612 
or is currently subject to evaluation under sec-
706 
tion 612, the Administrator may accept the no-
tice and information provided pursuant to that 
section as fulfilling the obligation under clause 
(iii) of subparagraph (A). 
‘‘(2) REVIEW AND ACTION BY THE ADMINIS-
TRATOR.— 
‘‘(A) COMPLETENESS.—Not later than 90 
days after receipt of notice under paragraph 
(1)(A)(iii) or (B), the Administrator shall deter-
mine whether the notice is complete. 
‘‘(B) DETERMINATION.— If the Adminis-
trator determines that the notice is complete, 
the Administrator shall, after notice and an op-
portunity for comment, not later than 12 
months after receipt of the notice— 
‘‘(i) issue and publish in the Federal 
Register— 
‘‘(I) a determination that 1 met-
ric ton of the gas does not make a 
contribution to global warming over 
100 years that is equal to or greater 
than that made by 1 metric ton of 
carbon dioxide; and 
‘‘(II) an explanation of the deci-
sion; or
707 
‘‘(ii) determine that 1 metric ton of 
the gas makes a contribution to global 
warming over 100 years that is equal to or 
greater than that made by 1 metric ton of 
carbon dioxide, and take the actions de-
scribed in subsection (b) with respect to 
such gas. 
‘‘(f) REGULATIONS.—Not later than 1 year after the 
date of enactment of this title, the Administrator shall 
promulgate regulations to carry out this section. Such reg-
ulations shall include— 
‘‘(1) requirements for the contents of a petition 
submitted under subsection (c); 
‘‘(2) requirements for the contents of a notice 
required under subsection (e); and 
‘‘(3) methods and standards for evaluating the 
carbon dioxide equivalent value of a gas. 
‘‘(g) GASES REGULATED UNDER TITLE VI.—The 
Administrator shall not designate a gas as a greenhouse 
gas under this section to the extent that the gas is regu-
lated under title VI. 
‘‘(h) SAVINGS CLAUSE.—Nothing in this section shall 
be interpreted to relieve any person from complying with 
the requirements of section 612.
708 
‘‘SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF 
GREENHOUSE GASES. 
‘‘(a) MEASURE
OF QUANTITY
OF GREENHOUSE 
GASES.—Any provision of this title or title VIII that refers 
to a quantity or percentage of a quantity of greenhouse 
gases shall mean the quantity or percentage of the green-
house gases expressed in carbon dioxide equivalents. 
‘‘(b) INITIAL VALUE.—Except as provided by the Ad-
ministrator under this section or section 711— 
‘‘(1) the carbon dioxide equivalent value of 
greenhouse gases for purposes of this Act shall be as 
follows: 
‘‘CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED 
GREENHOUSE GASES 
Greenhouse gas (1 metric ton) 
Carbon dioxide equivalent 
(metric tons) 
Carbon dioxide 
Methane 
Nitrous oxide 
298 
HFC-23 
14,800 
HFC-125 
3,500 
HFC-134a 
1,430 
HFC-143a 
4,470 
HFC-152a 
124 
HFC-227ea 
3,220 
HFC-236fa 
9,810 
HFC-4310mee 
1,640 
CF4 
7,390
709 
‘‘CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED 
GREENHOUSE GASES—Continued 
Greenhouse gas (1 metric ton) 
Carbon dioxide equivalent 
(metric tons) 
C2F6 
12,200 
C4F10 
8,860 
C6F14 
9,300 
SF6 
22,800 
NF3 
17,200 
; and 
‘‘(2) the carbon dioxide equivalent value for 
purposes of this Act for any greenhouse gas not list-
ed in the table under paragraph (1) shall be the 
100-year Global Warming Potentials provided in the 
Intergovernmental Panel on Climate Change Fourth 
Assessment Report. 
‘‘(c) PERIODIC REVIEW.— 
‘‘(1) Not later than February 1, 2017, and (ex-
cept as provided in paragraph (3)) not less than 
every 5 years thereafter, the Administrator shall— 
‘‘(A) review and, if appropriate, revise the 
carbon dioxide equivalent values established 
under this section or section 711(b)(2), based 
on a determination of the number of metric 
tons of carbon dioxide that makes the same 
contribution to global warming over 100 years 
as 1 metric ton of each greenhouse gas; and
710 
‘‘(B) publish in the Federal Register the 
results of that review and any revisions. 
‘‘(2) A revised determination published in the 
Federal Register under paragraph (1)(B) shall take 
effect for greenhouse gas emissions starting on Jan-
uary 1 of the first calendar year starting at least 9 
months after the date on which the revised deter-
mination was published. 
‘‘(3) The Administrator may decrease the fre-
quency of review and revision under paragraph (1) 
if the Administrator determines that such decrease 
is appropriate in order to synchronize such review 
and revision with any similar review process carried 
out pursuant to the United Nations Framework 
Convention on Climate Change, done at New York 
on May 9, 1992, or to an agreement negotiated 
under that convention, except that in no event shall 
the Administrator carry out such review and revision 
any less frequently than every 10 years. 
‘‘(d) METHODOLOGY.—In setting carbon dioxide 
equivalent values, for purposes of this section or section 
711, the Administrator shall take into account publica-
tions by the Intergovernmental Panel on Climate Change 
or a successor organization under the auspices of the
711 
United Nations Environmental Programme and the World 
Meteorological Organization. 
‘‘SEC. 713. GREENHOUSE GAS REGISTRY. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) CLIMATE REGISTRY.—The term ‘Climate 
Registry’ means the greenhouse gas emissions reg-
istry jointly established and managed by more than 
40 States and Indian tribes in 2007 to collect high- 
quality greenhouse gas emission data from facilities, 
corporations, and other organizations to support var-
ious greenhouse gas emission reporting and reduc-
tion policies for the member States and Indian 
tribes. 
‘‘(2) REPORTING ENTITY.—The term ‘reporting 
entity’ means— 
‘‘(A) a covered entity; 
‘‘(B) an entity that— 
‘‘(i) would be a covered entity if it had 
emitted, produced, imported, manufac-
tured, or delivered in 2008 or any subse-
quent year more than the applicable 
threshold level in the definition of covered 
entity in paragraph (13) of section 700; 
and
712 
‘‘(ii) has emitted, produced, imported, 
manufactured, or delivered in 2008 or any 
subsequent year more than the applicable 
threshold level in the definition of covered 
entity in paragraph (13) of section 700, 
provided that the figure of 25,000 tons of 
carbon dioxide equivalent is read instead 
as 10,000 tons of carbon dioxide equivalent 
and the figure of 460,000,000 cubic feet is 
read instead as 184,000,000 cubic feet; 
‘‘(C) any other entity that emits a green-
house gas, or produces, imports, manufactures, 
or delivers material whose use results or may 
result in greenhouse gas emissions if the Ad-
ministrator determines that reporting under 
this section by such entity will help achieve the 
purposes of this title or title VIII; 
‘‘(D) any vehicle fleet with emissions of 
more than 25,000 tons of carbon dioxide equiv-
alent on an annual basis, if the Administrator 
determines that the inclusion of such fleet will 
help achieve the purposes of this title or title 
VIII; or 
‘‘(E) any entity that delivers electricity to 
a facility in an energy-intensive industrial sec-
713 
tor that meets the energy or greenhouse gas in-
tensity criteria in section 764(b)(2)(A)(i). 
‘‘(b) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than 6 months 
after the date of enactment of this title, the Admin-
istrator shall issue regulations establishing a Federal 
greenhouse gas registry. Such regulations shall— 
‘‘(A) require reporting entities to submit to 
the Administrator data on— 
‘‘(i) greenhouse gas emissions in the 
United States; 
‘‘(ii) the production and manufacture 
in the United States, importation into the 
United States, and, at the discretion of the 
Administrator, 
exportation 
from 
the 
United States, of fuels and industrial gases 
the uses of which result or may result in 
greenhouse gas emissions; 
‘‘(iii) deliveries in the United States of 
natural gas, and any other gas meeting the 
specifications for commingling with natural 
gas for purposes of delivery, the combus-
tion of which result or may result in green-
house gas emissions; and
714 
‘‘(iv) the capture and sequestration of 
greenhouse gases; 
‘‘(B) require covered entities and, where 
appropriate, other reporting entities to submit 
to the Administrator data sufficient to ensure 
compliance with or implementation of the re-
quirements of this title; 
‘‘(C) require reporting of electricity deliv-
ered to facilities in an energy-intensive indus-
trial sector that meets the energy or greenhouse 
gas intensity criteria in section 764(b)(2)(A)(i); 
‘‘(D) ensure the completeness, consistency, 
transparency, accuracy, precision, and reliability 
of such data; 
‘‘(E) take into account the best practices 
from the most recent Federal, State, tribal, and 
international protocols for the measurement, ac-
counting, reporting, and verification of green-
house gas emissions, including protocols from 
the Climate Registry and other mandatory 
State or multistate authorized programs; 
‘‘(F) take into account the latest scientific 
research; 
‘‘(G) require that, for covered entities with 
respect to greenhouse gases to which section
715 
722 applies, and, to the extent determined to be 
appropriate by the Administrator, for covered 
entities with respect to other greenhouse gases 
and for other reporting entities, submitted data 
are based on— 
‘‘(i) continuous monitoring systems 
for fuel flow or emissions, such as contin-
uous emission monitoring systems; 
‘‘(ii) alternative systems that are dem-
onstrated as providing data with the same 
precision, 
reliability, 
accessibility, 
and 
timeliness, or, to the extent the Adminis-
trator determines is appropriate for report-
ing small amounts of emissions, the same 
precision, reliability, and accessibility and 
similar timeliness, as data provided by con-
tinuous monitoring systems for fuel flow or 
emissions; or 
‘‘(iii) alternative methodologies that 
are demonstrated to provide data with pre-
cision, reliability, accessibility, and timeli-
ness, or, to the extent the Administrator 
determines is appropriate for reporting 
small amounts of emissions, precision, reli-
ability, and accessibility, as similar as is
716 
technically feasible to that of data gen-
erally provided by continuous monitoring 
systems for fuel flow or emissions, if the 
Administrator determines that, with re-
spect to a reporting entity, there is no con-
tinuous monitoring system or alternative 
system described in clause (i) or (ii) that 
is technically feasible; 
‘‘(H) require that the Administrator, in de-
termining the extent to which the requirement 
to use systems or methodologies in accordance 
with subparagraph (G) is appropriate for re-
porting entities other than covered entities or 
for greenhouse gases to which section 722 does 
not apply, consider the cost of using such sys-
tems and methodologies, and of using other sys-
tems and methodologies that are available and 
suitable, for quantifying the emissions involved 
in light of the purposes of this title, including 
the goal of collecting consistent entity-wide 
data; 
‘‘(I) include methods for minimizing double 
reporting and avoiding irreconcilable double re-
porting of greenhouse gas emissions;
717 
‘‘(J) establish measurement protocols for 
carbon capture and sequestration systems, tak-
ing into consideration the regulations promul-
gated under section 813; 
‘‘(K) require that reporting entities provide 
the data required under this paragraph in re-
ports submitted electronically to the Adminis-
trator, in such form and containing such infor-
mation as may be required by the Adminis-
trator; 
‘‘(L) include requirements for keeping 
records supporting or related to, and protocols 
for auditing, submitted data; 
‘‘(M) establish consistent policies for calcu-
lating carbon content and greenhouse gas emis-
sions for each type of fossil fuel with respect to 
which reporting is required; 
‘‘(N) subsequent to implementation of poli-
cies developed under subparagraph (M), provide 
for immediate dissemination, to States, Indian 
tribes, and on the Internet, of all data reported 
under this section as soon as practicable after 
electronic audit by the Administrator and any 
resulting correction of data, except that data
718 
shall not be disseminated under this subpara-
graph if— 
‘‘(i) its nondissemination is vital to 
the national security of the United States, 
as determined by the President; or 
‘‘(ii) it is confidential business infor-
mation that cannot be derived from infor-
mation that is otherwise publicly available 
and that would cause significant calculable 
competitive harm if published, except 
that— 
‘‘(I) data relating to greenhouse 
gas emissions, including any upstream 
or verification data from reporting en-
tities, shall not be considered to be 
confidential business information; and 
‘‘(II) data that is confidential 
business information shall be provided 
to a State or Indian tribe within 
whose jurisdiction the reporting entity 
is located, if the Administrator deter-
mines that such State or Indian tribe 
has in effect protections for confiden-
tial business information that are at
719 
least as protective as protections ap-
plicable to the Federal Government; 
‘‘(O) prescribe methods by which the Ad-
ministrator shall, in cases in which satisfactory 
data are not submitted to the Administrator for 
any period of time, estimate emission, produc-
tion, importation, manufacture, or delivery lev-
els— 
‘‘(i) for covered entities with respect 
to greenhouse gas emissions, production, 
importation, manufacture, or delivery regu-
lated under this title to ensure that emis-
sions, production, importation, manufac-
ture, or deliveries are not underreported, 
and to create a strong incentive for meet-
ing data monitoring and reporting require-
ments— 
‘‘(I) with a conservative estimate 
of the highest emission, production, 
importation, manufacture, or delivery 
levels that may have occurred during 
the period for which data are missing; 
or 
‘‘(II) to the extent the Adminis-
trator considers appropriate, with an
720 
estimate of such levels assuming the 
unit is emitting, producing, importing, 
manufacturing, or delivering at a 
maximum potential level during the 
period, in order to ensure that such 
levels are not underreported and to 
create a strong incentive for meeting 
data monitoring and reporting re-
quirements; and 
‘‘(ii) for covered entities with respect 
to greenhouse gas emissions to which sec-
tion 722 does not apply and for other re-
porting entities, with a reasonable estimate 
of the emission, production, importation, 
manufacture, or delivery levels that may 
have occurred during the period for which 
data are missing; 
‘‘(P) require the designation of a des-
ignated representative for each reporting entity; 
‘‘(Q) require an appropriate certification, 
by the designated representative for the report-
ing entity, of accurate and complete accounting 
of greenhouse gas emissions, as determined by 
the Administrator; and
721 
‘‘(R) include requirements for other data 
necessary for accurate and complete accounting 
of greenhouse gas emissions, as determined by 
the Administrator, including data for quality 
assurance of monitoring systems, monitors and 
other measurement devices, and other data 
needed to verify reported emissions, production, 
importation, manufacture, or delivery. 
‘‘(2) TIMING.— 
‘‘(A) CALENDAR
YEARS
2007
THROUGH 
2010.—For a base period of calendar years 
2007 through 2010, each reporting entity shall 
submit annual data required under this section 
to the Administrator not later than March 31, 
2011. The Administrator may waive or modify 
reporting requirements for calendar years 2007 
through 2010 for categories of reporting enti-
ties to the extent that the Administrator deter-
mines that the reporting entities did not keep 
data or records necessary to meet reporting re-
quirements. The Administrator may, in addition 
to or in lieu of such requirements, collect infor-
mation on energy consumption and production. 
‘‘(B) SUBSEQUENT
CALENDAR
YEARS.— 
For calendar year 2011 and each subsequent
722 
calendar year, each reporting entity shall sub-
mit quarterly data required under this section 
to the Administrator not later than 60 days 
after the end of the applicable quarter, except 
when the data is already being reported to the 
Administrator on an earlier timeframe for an-
other program. 
‘‘(3) WAIVER OF REPORTING REQUIREMENTS.— 
The Administrator may waive reporting require-
ments under this section for specific entities to the 
extent that the Administrator determines that suffi-
cient and equally or more reliable verified and timely 
data are available to the Administrator and the pub-
lic on the Internet under other mandatory statutory 
requirements. 
‘‘(4) ALTERNATIVE THRESHOLD.—The Admin-
istrator may, by rule, establish applicability thresh-
olds for reporting under this section using alter-
native metrics and levels, provided that such metrics 
and levels are easier to administer and cover the 
same size and type of sources as the threshold de-
fined in this section. 
‘‘(c) INTERRELATIONSHIP WITH OTHER SYSTEMS.— 
In developing the regulations issued under subsection (b), 
the Administrator shall take into account the work done
723 
by the Climate Registry and other mandatory State or 
multistate programs. Such regulations shall include an ex-
planation of any major differences in approach between 
the system established under the regulations and such reg-
istries and programs. 
‘‘PART C—PROGRAM RULES 
‘‘SEC. 721. EMISSION ALLOWANCES. 
‘‘(a) IN GENERAL.—The Administrator shall estab-
lish a separate quantity of emission allowances for each 
calendar year starting in 2012, in the amounts prescribed 
under subsection (e). 
‘‘(b) IDENTIFICATION
NUMBERS.—The Adminis-
trator shall assign to each emission allowance established 
under subsection (a) a unique identification number that 
includes the vintage year for that emission allowance. 
‘‘(c) LEGAL STATUS OF EMISSION ALLOWANCES.— 
‘‘(1) IN
GENERAL.—An allowance established 
by the Administrator under this title does not con-
stitute a property right, nor does any offset credit 
or other instrument established or issued under the 
American Clean Energy and Security Act of 2009, 
and the amendments made thereby, for the purpose 
of demonstrating compliance with this title. 
‘‘(2) TERMINATION OR LIMITATION.—Nothing 
in this Act or any other provision of law shall be
724 
construed to limit or alter the authority of the 
United States, including the Administrator acting 
pursuant to statutory authority, to terminate or 
limit allowances, offset credits, or term offset cred-
its. 
‘‘(3) OTHER
PROVISIONS
UNAFFECTED.—Ex-
cept as otherwise specified in this Act, nothing in 
this Act relating to allowances, offset credits, or 
term offset credits established or issued under this 
title shall affect the application of any other provi-
sion of law to a covered entity, or the responsibility 
for a covered entity to comply with any such provi-
sion of law. 
‘‘(d) SAVINGS PROVISION.—Nothing in this part shall 
be construed as requiring a change of any kind in any 
State law regulating electric utility rates and charges, or 
as affecting any State law regarding such State regula-
tion, or as limiting State regulation (including any 
prudency review) under such a State law. Nothing in this 
part shall be construed as modifying the Federal Power 
Act or as affecting the authority of the Federal Energy 
Regulatory Commission under that Act. Nothing in this 
part shall be construed to interfere with or impair any pro-
gram for competitive bidding for power supply in a State 
in which such program is established.
725 
‘‘(e) ALLOWANCES FOR EACH CALENDAR YEAR.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the number of emission allowances estab-
lished by the Administrator under subsection (a) for 
each calendar year shall be as provided in the fol-
lowing table: 
‘‘Calendar year 
Emission allowances (in mil-
lions) 
2012 
4,627 
2013 
4,544 
2014 
5,099 
2015 
5,003 
2016 
5,482 
2017 
5,375 
2018 
5,269 
2019 
5,162 
2020 
5,056 
2021 
4,903 
2022 
4,751 
2023 
4,599 
2024 
4,446 
2025 
4,294 
2026 
4,142 
2027 
3,990 
2028 
3,837 
2029 
3,685 
2030 
3,533 
2031 
3,408
726 
‘‘Calendar year 
Emission allowances (in mil-
lions) 
2032 
3,283 
2033 
3,158 
2034 
3,033 
2035 
2,908 
2036 
2,784 
2037 
2,659 
2038 
2,534 
2039 
2,409 
2040 
2,284 
2041 
2,159 
2042 
2,034 
2043 
1,910 
2044 
1,785 
2045 
1,660 
2046 
1,535 
2047 
1,410 
2048 
1,285 
2049 
1,160 
2050 and each year thereafter 
1,035 
‘‘(2) REVISION.— 
‘‘(A) IN
GENERAL.—The Administrator 
may adjust, in accordance with subparagraph 
(B), the number of emission allowances estab-
lished pursuant to paragraph (1) if, after notice 
and an opportunity for public comment, the Ad-
ministrator determines that—
727 
‘‘(i) United States greenhouse gas 
emissions in 2005 were other than 7,206 
million metric tons carbon dioxide equiva-
lent; 
‘‘(ii) if the requirements of this title 
for 2012 had been in effect in 2005, sec-
tion 722 would have required emission al-
lowances to be held for other than 66.2 
percent of United States greenhouse gas 
emissions in 2005; 
‘‘(iii) if the requirements of this title 
for 2014 had been in effect in 2005, sec-
tion 722 would have required emission al-
lowances to be held for other than 75.7 
percent of United States greenhouse gas 
emissions in 2005; or 
‘‘(iv) if the requirements of this title 
for 2016 had been in effect in 2005, sec-
tion 722 would have required emission al-
lowances to be held for other than 84.5 
percent United States greenhouse gas 
emissions in 2005. 
‘‘(B) ADJUSTMENT FORMULA.— 
‘‘(i) IN
GENERAL.—If the Adminis-
trator adjusts under this paragraph the
728 
number of emission allowances established 
pursuant to paragraph (1), the number of 
emission allowances the Administrator es-
tablishes for any given calendar year shall 
equal the product of— 
‘‘(I) United States greenhouse 
gas emissions in 2005, expressed in 
tons of carbon dioxide equivalent; 
‘‘(II) the percent of United 
States greenhouse gas emissions in 
2005, expressed in tons of carbon di-
oxide equivalent, that would have been 
subject to section 722 if the require-
ments of this title for the given cal-
endar year had been in effect in 2005; 
and 
‘‘(III) the percentage set forth 
for that calendar year in section 
703(a), or determined under clause 
(ii) of this subparagraph. 
‘‘(ii) TARGETS.—In applying the por-
tion of the formula in clause (i)(III) of this 
subparagraph, for calendar years for which 
a percentage is not listed in section 703(a), 
the Administrator shall use a uniform an-
729 
nual decline in the amount of emissions be-
tween the years that are specified. 
‘‘(iii) CARBON DIOXIDE EQUIVALENT 
VALUE.—If 
the 
Administrator 
adjusts 
under this paragraph the number of emis-
sion allowances established pursuant to 
paragraph (1), the Administrator shall use 
the carbon dioxide equivalent values estab-
lished pursuant to section 712. 
‘‘(iv) LIMITATION
ON
ADJUSTMENT 
TIMING.—Once a calendar year has start-
ed, the Administrator may not adjust the 
number of emission allowances to be estab-
lished for that calendar year. 
‘‘(C) LIMITATION
ON
ADJUSTMENT
AU-
THORITY.—The 
Administrator 
may 
adjust 
under this paragraph the number of emission 
allowances to be established pursuant to para-
graph (1) only once. 
‘‘(f) COMPENSATORY ALLOWANCE.— 
‘‘(1) IN
GENERAL.—The regulations promul-
gated under subsection (h) shall provide for the es-
tablishment and distribution of compensatory allow-
ances for—
730 
‘‘(A) the destruction, in 2012 or later, of 
fluorinated gases that are greenhouse gases if— 
‘‘(i) allowances or offset credits were 
retired for their production or importation; 
and 
‘‘(ii) such gases are not required to be 
destroyed under any other provision of law; 
‘‘(B) the nonemissive use, in 2012 or later, 
of petroleum-based or coal-based liquid or gas-
eous fuel, petroleum coke, natural gas liquid, or 
natural gas as a feedstock, if allowances or off-
set credits were retired for the greenhouse 
gases that would have been emitted from their 
combustion; and 
‘‘(C) the conversionary use, in 2012 or 
later, of fluorinated gases in a manufacturing 
process, including semiconductor research or 
manufacturing, if allowances or offset credits 
were retired for the production or importation 
of such gas. 
‘‘(2) ESTABLISHMENT AND DISTRIBUTION.— 
‘‘(A) IN
GENERAL.—Not later than 90 
days after the end of each calendar year, the 
Administrator shall establish and distribute to 
the entity taking the actions described in sub-
731 
paragraph (A), (B), or (C) of paragraph (1) a 
quantity of compensatory allowances equivalent 
to the number of tons of carbon dioxide equiva-
lent of avoided emissions achieved through such 
actions. In establishing the quantity of compen-
satory allowances, the Administrator shall take 
into account the carbon dioxide equivalent value 
of any greenhouse gas resulting from such ac-
tion. 
‘‘(B) SOURCE OF ALLOWANCES.—Compen-
satory allowances established under this sub-
section shall not be emission allowances estab-
lished under subsection (a). 
‘‘(C) 
IDENTIFICATION
NUMBERS.—The 
Administrator shall assign to each compen-
satory allowance established under subpara-
graph (A) a unique identification number. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘destruction’ means the con-
version of a greenhouse gas by thermal, chem-
ical, or other means to another gas or set of 
gases with little or no carbon dioxide equivalent 
value;
732 
‘‘(B) the term ‘nonemissive use’ means the 
use of fossil fuel as a feedstock in an industrial 
or manufacturing process to the extent that 
greenhouse gases are not emitted from such 
process, and to the extent that the products of 
such process are not intended for use as, or to 
be contained in, a fuel; and 
‘‘(C) the term ‘conversionary use’ means 
the conversion during research or manufac-
turing of a fluorinated gas into another green-
house gas or set of gases with a lower carbon 
dioxide equivalent value. 
‘‘(4) FEEDSTOCK EMISSIONS STUDY.— 
‘‘(A) The Administrator may conduct a 
study to determine the extent to which petro-
leum-based or coal-based liquid or gaseous fuel, 
petroleum coke, natural gas liquid, or natural 
gas are used as feedstocks in manufacturing 
processes to produce products and the green-
house gas emissions resulting from such uses. 
‘‘(B) If as a result of such a study, the Ad-
ministrator determines that the use of such 
products by noncovered sources results in sub-
stantial emissions of greenhouse gases and that 
such emissions have not been adequately ad-
733 
dressed under other requirements of this Act, 
the Administrator may, after notice and com-
ment rulemaking, promulgate a regulation re-
ducing 
compensatory 
allowances 
commen-
surately if doing so will not result in shifting 
such emissions to noncovered sources. 
‘‘(g) FLUORINATED GASES ASSESSMENT.—No later 
than March 31, 2014, the Administrator shall complete 
an assessment of the regulation of non-HFC fluorinated 
gases under this title to determine whether the most ap-
propriate point of regulation is at the gas manufacturer 
or importer level, or at the source of emissions down-
stream. If the Administrator determines, based on consid-
eration of environmental effectiveness, cost effectiveness, 
administrative feasibility, extent of coverage of emissions, 
competitiveness and other relevant considerations con-
sistent with the purposes of this title, that emissions of 
non-HFC fluorinated gases can best be regulated by desig-
nating downstream emission sources as covered entities 
with compliance obligations under section 722, the Admin-
istrator shall, after notice and comment rulemaking, 
change the definition of covered entity and the compliance 
obligations under section 722 with respect to non-HFC 
fluorinated gases accordingly, consistent with the purposes 
of this title, and establish such other requirements as are
734 
necessary to ensure compliance for such entities with the 
requirements of this title. 
‘‘(h) REGULATIONS.—Not later than 24 months after 
the date of enactment of this title, the Administrator shall 
promulgate regulations to carry out the provisions of this 
title. 
‘‘SEC. 722. PROHIBITION OF EXCESS EMISSIONS. 
‘‘(a) PROHIBITION.—Except as provided in sub-
section (c), effective January 1, 2012, each covered entity 
is prohibited from emitting greenhouse gases and having 
attributable greenhouse gas emissions, in combination, in 
excess of its allowable emissions level. A covered entity’s 
allowable emissions level for each calendar year is the 
number of emission allowances (or offset credits or other 
allowances as provided in subsection (d)) it holds as of 
12:01 a.m. on April 1 (or a later date established by the 
Administrator under subsection (j)) of the following cal-
endar year. 
‘‘(b) METHODS OF DEMONSTRATING COMPLIANCE.— 
Except as otherwise provided in this section, the owner 
or operator of a covered entity shall not be considered to 
be in compliance with the prohibition in subsection (a) un-
less, as of 12:01 a.m. on April 1 (or a later date estab-
lished by the Administrator under subsection (j)) of each 
calendar year starting in 2013, the owner or operator
735 
holds a quantity of emission allowances (or offset credits 
or other allowances as provided in subsection (d)) at least 
as great as the quantity calculated as follows: 
‘‘(1) ELECTRICITY
SOURCES.—For a covered 
entity described in section 700(13)(A), 1 emission 
allowance for each ton of carbon dioxide equivalent 
of greenhouse gas that such covered entity emitted 
in the previous calendar year, excluding emissions 
resulting from the combustion of— 
‘‘(A) petroleum-based or coal-based liquid 
fuel; 
‘‘(B) natural gas liquid; 
‘‘(C) renewable biomass or gas derived 
from renewable biomass; or 
‘‘(D) petroleum coke or gas derived from 
petroleum coke. 
‘‘(2) FUEL PRODUCERS AND IMPORTERS.—For 
a covered entity described in section 700(13)(B), 1 
emission allowance for each ton of carbon dioxide 
equivalent of greenhouse gas that would be emitted 
from the combustion of any petroleum-based or coal- 
based liquid fuel, petroleum coke, or natural gas liq-
uid, produced or imported by such covered entity 
during the previous calendar year for sale or dis-
tribution in interstate commerce, assuming no cap-
736 
ture and sequestration of any greenhouse gas emis-
sions. 
‘‘(3) INDUSTRIAL
GAS
PRODUCERS
AND
IM-
PORTERS.—For a covered entity described in section 
700(13)(C), 1 emission allowance for each ton of 
carbon dioxide equivalent of fossil fuel-based carbon 
dioxide, nitrous oxide, or any other fluorinated gas 
that is a greenhouse gas (except for nitrogen 
trifluoride), or any combination thereof, produced or 
imported by such covered entity during the previous 
calendar year for sale or distribution in interstate 
commerce. 
‘‘(4) NITROGEN TRIFLUORIDE SOURCES.—For 
a covered entity described in section 700(13)(D), 1 
emission allowance for each ton of carbon dioxide 
equivalent of nitrogen trifluoride that such covered 
entity emitted in the previous calendar year. 
‘‘(5) GEOLOGICAL SEQUESTRATION SITES.—For 
a covered entity described in section 700(13)(E), 1 
emission allowance for each ton of carbon dioxide 
equivalent of greenhouse gas that such covered enti-
ty emitted in the previous calendar year. 
‘‘(6) INDUSTRIAL STATIONARY SOURCES.—For 
a covered entity described in section 700(13)(F), 
(G), or (H), 1 emission allowance for each ton of
737 
carbon dioxide equivalent of greenhouse gas that 
such covered entity emitted in the previous calendar 
year, excluding emissions resulting from— 
‘‘(A) the combustion of petroleum-based or 
coal-based liquid fuel; 
‘‘(B) the combustion of natural gas liquid; 
‘‘(C) the combustion of renewable biomass 
or gas derived from renewable biomass; 
‘‘(D) the combustion of petroleum coke or 
gas derived from petroleum coke; or 
‘‘(E) the use of any fluorinated gas that is 
a greenhouse gas purchased for use at that cov-
ered entity, except for nitrogen trifluoride. 
‘‘(7) INDUSTRIAL FOSSIL FUEL-FIRED COMBUS-
TION DEVICES.—For a covered entity described in 
section 700(13)(I), 1 emission allowance for each 
ton of carbon dioxide equivalent of greenhouse gas 
that the devices emitted in the previous calendar 
year, excluding emissions resulting from the combus-
tion of— 
‘‘(A) petroleum-based or coal-based liquid 
fuel; 
‘‘(B) natural gas liquid; 
‘‘(C) renewable biomass or gas derived 
from renewable biomass; or
738 
‘‘(D) petroleum coke or gas derived from 
petroleum coke. 
‘‘(8) NATURAL GAS LOCAL DISTRIBUTION COM-
PANIES.—For a covered entity described in section 
700(13)(J), 1 emission allowance for each ton of 
carbon dioxide equivalent of greenhouse gas that 
would be emitted from the combustion of the natural 
gas, and any other gas meeting the specifications for 
commingling with natural gas for purposes of deliv-
ery, that such entity delivered during the previous 
calendar year to customers that are not covered enti-
ties, assuming no capture and sequestration of that 
greenhouse gas. 
‘‘(9) ALGAE-BASED FUELS.—Where carbon di-
oxide (or another greenhouse gas) generated by a 
covered entity is used as an input in the production 
of algae-based fuels, the Administrator shall ensure 
that emission allowances are required to be held ei-
ther for the carbon dioxide generated by a covered 
entity that is used to grow the algae or for the por-
tion of the carbon dioxide emitted from combustion 
of the fuel produced from such algae that is attrib-
utable to carbon dioxide generated by a covered enti-
ty, but not for both.
739 
‘‘(10) FUGITIVE
EMISSIONS.—The greenhouse 
gas emissions to which paragraphs (1), (4), (6), and 
(7) apply shall not include fugitive emissions of 
greenhouse gas, except to the extent the Adminis-
trator determines that data on the carbon dioxide 
equivalent value of greenhouse gas in the fugitive 
emissions can be provided with sufficient precision, 
reliability, accessibility, and timeliness to ensure the 
integrity of emission allowances, the allowance track-
ing system, and the cap on emissions. 
‘‘(11) EXPORT EXEMPTION.—This section shall 
not apply to any petroleum-based or coal-based liq-
uid fuel, petroleum coke, natural gas liquid, fossil 
fuel-based 
carbon 
dioxide, 
nitrous 
oxide, 
or 
fluorinated gas that is exported for sale or use. 
‘‘(12) NATURAL GAS LIQUIDS.—For natural gas 
liquids, the covered entity subject to the requirement 
stated in paragraph (2) shall be the owner of the 
natural gas liquids at the point the natural gas liq-
uids are separated into merchantable products. 
‘‘(13) 
APPLICATION
OF
MULTIPLE
PARA-
GRAPHS.—For a covered entity to which more than 
1 of paragraphs (1) through (8) apply, all applicable 
paragraphs shall apply, except that not more than 1
740 
emission allowance shall be required for the same 
emission. 
‘‘(14) APPLICATION TO FRACTIONS OF TONS.— 
In applying paragraphs (1) through (8), any amount 
less than 1 ton of carbon dioxide equivalent of emis-
sions or attributable greenhouse gas emissions shall 
be treated as 1 ton of such carbon dioxide equiva-
lent. 
‘‘(c) PHASE-IN OF PROHIBITION.— 
‘‘(1) INDUSTRIAL STATIONARY SOURCES.—The 
prohibition under subsection (a) shall first apply to 
a covered entity described in section 700(13)(D), 
(F), (G), (H), or (I), with respect to emissions oc-
curring during calendar year 2014. 
‘‘(2) NATURAL GAS LOCAL DISTRIBUTION COM-
PANIES.—The prohibition under subsection (a) shall 
first apply to a covered entity described in section 
700(13)(J) with respect to deliveries occurring dur-
ing calendar year 2016. 
‘‘(d) ADDITIONAL METHODS.—In addition to using 
the method of compliance described in subsection (b), a 
covered entity may do the following: 
‘‘(1) OFFSET CREDITS.— 
‘‘(A) IN GENERAL.—Covered entities col-
lectively may, in accordance with this para-
741 
graph, use offset credits to demonstrate compli-
ance for up to a maximum of 2 billion tons of 
greenhouse gas emissions annually. The ability 
to demonstrate compliance with offset credits 
shall be divided pro rata among covered entities 
by allowing each covered entity to satisfy a per-
centage of the number of allowances required to 
be held under subsection (b) to demonstrate 
compliance by holding 1 domestic offset credit 
or 1.25 international offset credits in lieu of an 
emission allowance, except as provided in sub-
paragraph (D). 
‘‘(B) 
APPLICABLE
PERCENTAGE.—The 
percentage referred to in subparagraph (A) for 
a given calendar year shall be determined by di-
viding 2 billion by the sum of 2 billion plus the 
number of emission allowances established 
under section 721(a) for the previous year, and 
multiplying that number by 100. Not more than 
one half of the applicable percentage under this 
paragraph may be used by holding domestic off-
set credits, and not more than one half of the 
applicable percentage under this paragraph may 
be used by holding international offset credits, 
except as provided in subparagraph (C).
742 
‘‘(C) MODIFIED
PERCENTAGES.—If the 
Administrator determines that domestic offset 
credits available for use in demonstrating com-
pliance in any calendar year at domestic offset 
prices generally equal to or less than emission 
allowance prices, are likely to offset less than 
0.9 billion tons of greenhouse gas emissions 
(measured in tons of carbon dioxide equiva-
lents), for purposes of compliance demonstra-
tion in that year the Administrator shall— 
‘‘(i) increase the percentage of emis-
sions that can be offset through the use of 
international offset credits to reflect the 
amount that 1.0 billion exceeds the number 
of domestic offset credits the Adminis-
trator determines is available, at prices 
generally equal to or less than emission al-
lowance prices, for that year, up to a max-
imum of 0.5 billion tons of greenhouse gas 
emissions; and 
‘‘(ii) decrease the percentage of emis-
sions that can be offset through the use of 
domestic offset credits by the same 
amount.
743 
‘‘(D) INTERNATIONAL OFFSET CREDITS.— 
Notwithstanding subparagraph (A), to dem-
onstrate compliance prior to calendar year 
2018, a covered entity may use 1 international 
offset credit in lieu of an emission allowance up 
to the amount permitted under this paragraph. 
‘‘(E) PRESIDENT’S
RECOMMENDATION.— 
The President may make a recommendation to 
Congress as to whether the number 2 billion 
specified in subparagraphs (A) and (B) should 
be increased or decreased. 
‘‘(2) TERM OFFSET CREDITS.— 
‘‘(A) IN GENERAL.—Covered entities may, 
in accordance with this paragraph, use non-ex-
pired term offset credits instead of domestic 
offset credits for purposes of temporarily dem-
onstrating compliance with this section. 
‘‘(B) AMOUNT.—The combined quantity of 
term offset credits and domestic offset credits 
used by a covered entity to demonstrate compli-
ance for its emissions or attributable green-
house gas emissions in any given year shall not 
exceed the quantity of domestic offset credits 
that a covered entity is entitled to use for that
744 
year to demonstrate compliance in accordance 
with paragraph (1). 
‘‘(C) EXPIRATION.—A term offset credit 
shall expire in the year after its term ends. The 
term of a term offset credit shall be calculated 
by adding to the year of issuance the number 
of years equal to the length of the crediting pe-
riod for the practice or project for which the 
term offset credit was issued, but in no case 
shall be later than the date 5 years from the 
date of issuance. 
‘‘(D) DEMONSTRATING COMPLIANCE UPON 
EXPIRATION OF TERM OFFSET CREDIT.—With 
respect to the emissions for which a covered en-
tity is using term offset credits to demonstrate 
compliance temporarily with this section, the 
owner or operator of a covered entity shall not 
be considered to be in compliance with the pro-
hibition in subsection (a) unless, as of 12:01 
a.m. on April 1 (or a later date established by 
the Administrator under subsection (j)) of the 
calendar year in which a term offset credit ex-
pires, the owner or operator holds—
745 
‘‘(i) for purposes of finally dem-
onstrating compliance, an allowance or a 
domestic offset credit; or 
‘‘(ii) for purposes of temporarily dem-
onstrating compliance, a non-expired term 
offset credit. 
Domestic offset credits used for purposes of fi-
nally demonstrating compliance under this sub-
paragraph shall not be subject to the percent-
age limitations in subparagraph (B). 
‘‘(E) FINANCIAL ASSURANCE.—A covered 
entity may not use a term offset credit to dem-
onstrate compliance temporarily unless it simul-
taneously provides to the Administrator finan-
cial assurance that, at the end of the term off-
set credit’s crediting term, the covered entity 
will have sufficient resources to obtain the 
quantity of allowances or credits necessary to 
demonstrate final compliance. The Adminis-
trator shall issue regulations establishing re-
quirements for such financial assurance, which 
shall take into account the increased risk asso-
ciated with longer crediting terms. These regu-
lations shall take into account the total number 
of tons of carbon dioxide equivalent of green-