[United States Statutes at Large, Volume 121, 110th Congress, 1st Session]
[From the U.S. Government Printing Office, www.gpo.gov]

121 STAT. 1492

Public Law 110-140
110th Congress

An Act


 
To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to
protect consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas capture
and storage options, and to improve the energy performance of the
Federal Government, and for other purposes. [NOTE: Dec. 19,
2007 -  [H.R. 6]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: Energy Independence and
Security Act of 2007. 42 USC 17001 note. assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Energy Independence
and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.

TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

Subtitle A--Increased Corporate Average Fuel Economy Standards

Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.

Subtitle B--Improved Vehicle Technology

Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.

Subtitle C--Federal Vehicle Fleets

Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.

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121 STAT. 1493

TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

Subtitle A--Renewable Fuel Standard

Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations on
fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.

Subtitle B--Biofuels Research and Development

Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with the
use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.

Subtitle C--Biofuels Infrastructure

Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and other modes of
transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.

Subtitle D--Environmental Safeguards

Sec. 251. Waiver for fuel or fuel additives.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING

Subtitle A--Appliance Energy Efficiency

Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying State
authority.
Sec. 306. Regional standards for furnaces, central air conditioners, and
heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.

Subtitle B--Lighting Energy Efficiency

Sec. 321. Efficient light bulbs.

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121 STAT. 1494

Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.

TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

Sec. 401. Definitions.

Subtitle A--Residential Building Efficiency

Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.

Subtitle B--High-Performance Commercial Buildings

Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.

Subtitle C--High-Performance Federal Buildings

Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency.
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.

Subtitle D--Industrial Energy Efficiency

Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.

Subtitle E--Healthy High-Performance Schools

Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.

Subtitle F--Institutional Entities

Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.

Subtitle G--Public and Assisted Housing

Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.

Subtitle H--General Provisions

Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.

TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

Subtitle A--United States Capitol Complex

Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility study
and demonstration projects.

Subtitle B--Energy Savings Performance Contracting

Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.

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121 STAT. 1495

Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.

Subtitle C--Energy Efficiency in Federal Agencies

Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.

Subtitle D--Energy Efficiency of Public Institutions

Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.

Subtitle E--Energy Efficiency and Conservation Block Grants

Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.

TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

Subtitle A--Solar Energy

Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.

Subtitle B--Geothermal Energy

Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.

Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.

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121 STAT. 1496

Subtitle D--Energy Storage for Transportation and Electric Power

Sec. 641. Energy storage competitiveness.

Subtitle E--Miscellaneous Provisions

Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.

TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration

Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.

Subtitle B--Carbon Capture and Sequestration Assessment and Framework

Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.

TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

Subtitle A--Management Improvements

Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.

Subtitle B--Prohibitions on Market Manipulation and False Information

Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.

TITLE IX--INTERNATIONAL ENERGY PROGRAMS

Sec. 901. Definitions.

Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries

Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector trade
and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.

Subtitle B--International Clean Energy Foundation

Sec. 921. Definitions.

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121 STAT. 1497

Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.

Subtitle C--Miscellaneous Provisions

Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.

TITLE X--GREEN JOBS

Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training
program.

TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

Subtitle A--Department of Transportation

Sec. 1101. Office of Climate Change and Environment.

Subtitle B--Railroads

Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.

Subtitle C--Marine Transportation

Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction fund.
Sec. 1123. Short sea transportation report.

Subtitle D--Highways

Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.

TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.

TITLE XIII--SMART GRID

Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.

TITLE XIV--POOL AND SPA SAFETY

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.
Sec. 1404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safety grant program.
Sec. 1406. Minimum State law requirements.
Sec. 1407. Education program.

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121 STAT. 1498

Sec. 1408. CPSC report.

TITLE XV--REVENUE PROVISIONS

Sec. 1500. Amendment of 1986 Code.
Sec. 1501. Extension of additional 0.2 percent FUTA surtax.
Sec. 1502. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.

TITLE XVI--EFFECTIVE DATE

Sec. 1601. Effective date.

SEC. 2. [NOTE: 42 USC 17001. DEFINITIONS.

In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.

SEC. 3. [NOTE: 42 USC 17002. RELATIONSHIP TO OTHER LAW.

Except to the extent expressly provided in this Act or an amendment
made by this Act, nothing in this Act or an amendment made by this Act
supersedes, limits the authority provided or responsibility conferred
by, or authorizes any violation of any provision of law (including a
regulation), including any energy or environmental law or regulation.

TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

Subtitle A--Increased [NOTE: Ten-in-Ten Fuel Economy Act. Corporate
Average Fuel Economy Standards

SEC. 101. [NOTE: 42 USC 30101 note. SHORT TITLE.

This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.

SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN
OTHER VEHICLES.

(a) Increased Standards.--Section 32902 of title 49, United States
Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger Automobiles.--''
and inserting ``Prescription of Standards by
Regulation.--'';
(B) by striking ``(except passenger automobiles)''
in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:

``(b) Standards for Automobiles and Certain Other Vehicles.--

[[Page 1499]]
121 STAT. 1499

``(1) In general.--The Secretary of Transportation, after
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall prescribe separate
average fuel economy standards for--
``(A) passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection;
``(B) non-passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection; and
``(C) work trucks and commercial medium-duty or
heavy-duty on-highway vehicles in accordance with
subsection (k).
``(2) Fuel economy standards for automobiles.--
``(A) Automobile fuel economy average for model
years 2011 through 2020.--The Secretary shall prescribe
a separate average fuel economy standard for passenger
automobiles and a separate average fuel economy standard
for non-passenger automobiles for each model year
beginning with model year 2011 to achieve a combined
fuel economy average for model year 2020 of at least 35
miles per gallon for the total fleet of passenger and
non-passenger automobiles manufactured for sale in the
United States for that model year.
``(B) Automobile fuel economy average for model
years 2021 through 2030.--For model years 2021 through
2030, the average fuel economy required to be attained
by each fleet of passenger and non-passenger automobiles
manufactured for sale in the United States shall be the
maximum feasible average fuel economy standard for each
fleet for that model year.
``(C) Progress toward standard required.--In
prescribing average fuel economy standards under
subparagraph (A), the Secretary shall prescribe annual
fuel economy standard increases that increase the
applicable average fuel economy standard ratably
beginning with model year 2011 and ending with model
year 2020.
``(3) Authority of the [NOTE: Regulations. secretary.--
The Secretary shall--
``(A) prescribe by regulation separate average fuel
economy standards for passenger and non-passenger
automobiles based on 1 or more vehicle attributes
related to fuel economy and express each standard in the
form of a mathematical function; and
``(B) issue regulations under this title prescribing
average fuel economy standards for at least 1, but not
more than 5, model years.
``(4) Minimum standard.--In addition to any standard
prescribed pursuant to paragraph (3), each manufacturer shall
also meet the minimum standard for domestically manufactured
passenger automobiles, which shall be the greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 [NOTE: Federal
Register, publication. percent of the average fuel
economy projected by the Secretary for the combined
domestic and non-domestic passenger automobile fleets
manufactured for sale in the United States by all
manufacturers in the model year, which projection shall
be published in the Federal

[[Page 1500]]
121 STAT. 1500

Register when the standard for that model year is
promulgated in accordance with this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph (2) of
this subsection, the'' and inserting ``The''; and
(B) by striking paragraph (2).

(b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty
On-Highway Vehicles and Work Trucks.--Section 32902 of title 49, United
States Code, is amended by adding at the end the following:
``(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work
Trucks.--
``(1) Study.--Not later than 1 year after the National
Academy of Sciences publishes the results of its study under
section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of
Transportation, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, shall
examine the fuel efficiency of commercial medium- and heavy-duty
on-highway vehicles and work trucks and determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency of such
vehicles and work trucks;
``(B) the appropriate metric for measuring and
expressing commercial medium- and heavy-duty on-highway
vehicle and work truck fuel efficiency performance,
taking into consideration, among other things, the work
performed by such on-highway vehicles and work trucks
and types of operations in which they are used;
``(C) the range of factors, including, without
limitation, design, functionality, use, duty cycle,
infrastructure, and total overall energy consumption and
operating costs that affect commercial medium- and
heavy-duty on-highway vehicle and work truck fuel
efficiency; and
``(D) such other factors and conditions that could
have an impact on a program to improve commercial
medium- and heavy-duty on-highway vehicle and work truck
fuel efficiency.
``(2) Rulemaking.--Not [NOTE: Deadline. later than 24
months after completion of the study required under paragraph
(1), the Secretary, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a commercial medium- and heavy-duty on-highway vehicle
and work truck fuel efficiency improvement program designed to
achieve the maximum feasible improvement, and shall adopt and
implement appropriate test methods, measurement metrics, fuel
economy standards, and compliance and enforcement protocols that
are appropriate, cost-effective, and technologically feasible
for commercial medium- and heavy-duty on-highway vehicles and
work trucks. The Secretary may prescribe separate standards for
different classes of vehicles under this subsection.
``(3) Lead-time; regulatory stability.--The commercial
medium- and heavy-duty on-highway vehicle and work truck fuel
economy standard adopted pursuant to this subsection shall
provide not less than--

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121 STAT. 1501

``(A) 4 full model years of regulatory lead-time;
and
``(B) 3 full model years of regulatory stability.''.

SEC. 103. DEFINITIONS.

(a) In General.--Section 32901(a) of title 49, United States Code,
is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) except as provided in section 32908 of this title,
`automobile' means a 4-wheeled vehicle that is propelled by
fuel, or by alternative fuel, manufactured primarily for use on
public streets, roads, and highways and rated at less than
10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different stages by
2 or more manufacturers, if no intermediate or final-
stage manufacturer of that vehicle manufactures more
than 10,000 multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as
paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway vehicle'
means an on-highway vehicle with a gross vehicle weight rating
of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by inserting ``or
a mixture of biodiesel and diesel fuel meeting the standard
established by the American Society for Testing and Materials or
under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u))
for fuel containing 20 percent biodiesel (commonly known as
`B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated, as
paragraph (18);
(6) by inserting after paragraph (16), as redesignated, the
following:
``(17) `non-passenger automobile' means an automobile that
is not a passenger automobile or a work truck.''; and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000 pounds
gross vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as
defined in section 86.1803-01 of title 40, Code of
Federal Regulations, as in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act).''.

SEC. 104. CREDIT TRADING PROGRAM.

(a) In General.--Section 32903 of title 49, United States Code, is
amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (a) through (d) of
section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years'' and
inserting ``5 consecutive model years'';
(B) by striking ``clause (1) of this subsection,''
and inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:

[[Page 1502]]
121 STAT. 1502

``(f) Credit Trading Among Manufacturers.--
``(1) In general.--The Secretary of Transportation may
establish, by regulation, a fuel economy credit trading program
to allow manufacturers whose automobiles exceed the average fuel
economy standards prescribed under section 32902 to earn credits
to be sold to manufacturers whose automobiles fail to achieve
the prescribed standards such that the total oil savings
associated with manufacturers that exceed the prescribed
standards are preserved when trading credits to manufacturers
that fail to achieve the prescribed standards.
``(2) Limitation.--The trading of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements of
section 32902(b)(4), without regard to any trading of credits
from other manufacturers.

``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) In general.--The [NOTE: Regulations. Secretary of
Transportation shall establish by regulation a fuel economy
credit transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy standards
prescribed under section 32902 to transfer the credits earned
under this section and to apply such credits within that
manufacturer's fleet to a compliance category of automobiles
that fails to achieve the prescribed standards.
``(2) Years for which used.--Credits transferred under this
subsection are available to be used in the same model years that
the manufacturer could have applied such credits under
subsections (a), (b), (d), and (e), as well as for the model
year in which the manufacturer earned such credits.
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model years 2011 through 2013, 1.0 mile
per gallon;
``(B) for model years 2014 through 2017, 1.5 miles
per gallon; and
``(C) for model year 2018 and subsequent model
years, 2.0 miles per gallon.
``(4) Limitation.--The transfer of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements
under section 32904(b)(4), without regard to any transfer of
credits from other categories of automobiles described in
paragraph (6)(B).
``(5) Years available.--A credit may be transferred under
this subsection only if it is earned after model year 2010.
``(6) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a particular model
year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the
following 3 categories of automobiles for which
compliance is separately calculated under this chapter:

[[Page 1503]]
121 STAT. 1503

``(i) Passenger automobiles manufactured
domestically.
``(ii) Passenger automobiles not manufactured
domestically.
``(iii) Non-passenger automobiles.''.

(b) Conforming Amendments.--
(1) Limitations.--Section 32902(h) of title 49, United
States Code, is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel economy
standard, the trading, transferring, or availability of credits
under section 32903.''.
(2) Separate calculations.--Section 32904(b)(1)(B) is
amended by striking ``chapter.'' and inserting ``chapter, except
for the purposes of section 32903.''.

SEC. 105. CONSUMER INFORMATION.

Section 32908 of title 49, United States Code, is amended by adding
at the end the following:
``(g) Consumer [NOTE: Regulations. Information.--
``(1) Program.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall develop and
implement by rule a program to require manufacturers--
``(A) to label new automobiles sold in the United
States with--

``(i) [NOTE: Criteria. Deadline. information
reflecting an automobile's performance on the
basis of criteria that the Administrator shall
develop, not later than 18 months after the date
of the enactment of the Ten-in-Ten Fuel Economy
Act, to reflect fuel economy and greenhouse gas
and other emissions over the useful life of the
automobile;
``(ii) a rating system that would make it easy
for consumers to compare the fuel economy and
greenhouse gas and other emissions of automobiles
at the point of purchase, including a designation
of automobiles--
``(I) with the lowest greenhouse gas
emissions over the useful life of the
vehicles; and
``(II) the highest fuel economy; and
``(iii) a permanent and prominent display that
an automobile is capable of operating on an
alternative fuel; and
``(B) to include in the owner's manual for vehicles
capable of operating on alternative fuels information
that describes that capability and the benefits of using
alternative fuels, including the renewable nature and
environmental benefits of using alternative fuels.
``(2) Consumer education.--
``(A) In general.--The Secretary of Transportation,
in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall develop and implement by rule a consumer education
program to improve consumer understanding of automobile

[[Page 1504]]
121 STAT. 1504

performance described in paragraph (1)(A)(i) and to
inform consumers of the benefits of using alternative
fuel in automobiles and the location of stations with
alternative fuel capacity.
``(B) Fuel savings education campaign.--The
Secretary of Transportation shall establish a consumer
education campaign on the fuel savings that would be
recognized from the purchase of vehicles equipped with
thermal management technologies, including energy
efficient air conditioning systems and glass.
``(3) Fuel tank labels for alternative fuel automobiles.--
The Secretary of Transportation shall by rule require a label to
be attached to the fuel compartment of vehicles capable of
operating on alternative fuels, with the form of alternative
fuel stated on the label. A label attached in compliance with
the requirements of section 32905(h) is deemed to meet the
requirements of this paragraph.
``(4) Rulemaking deadline.--The Secretary of Transportation
shall issue a final rule under this subsection not later than 42
months after the date of the enactment of the Ten-in-Ten Fuel
Economy Act.''.

SEC. 106. [NOTE: 49 USC 32902 note. CONTINUED APPLICABILITY OF
EXISTING STANDARDS.

Nothing in this subtitle, or the amendments made by this subtitle,
shall be construed to affect the application of section 32902 of title
49, United States Code, to passenger automobiles or non-passenger
automobiles manufactured before model year 2011.

SEC. 107. [NOTE: 49 USC 32902 note. NATIONAL ACADEMY OF SCIENCES
STUDIES.

(a) In [NOTE: Contracts. General.--As soon as practicable after
the date of enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to develop a
report evaluating vehicle fuel economy standards, including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report evaluating
the corporate average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile and medium-duty
and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive and medium-duty and heavy-duty
truck manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of title
49, United States Code, as amended by this subtitle.

(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 5
years after the date on which the Secretary executes the agreement with
the Academy.
(c) Quinquennial Updates.--After submitting the initial report, the
Academy shall update the report at 5 year intervals thereafter through
2025.

[[Page 1505]]
121 STAT. 1505

SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-
DUTY TRUCK FUEL ECONOMY.

(a) In [NOTE: Contracts. General.--As soon as practicable after
the date of enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to develop a
report evaluating medium-duty and heavy-duty truck fuel economy
standards, including--
(1) an assessment of technologies and costs to evaluate fuel
economy for medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that
may be used practically to improve medium-duty and heavy-duty
truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the medium-duty and heavy-duty truck
manufacturing process;
(4) an assessment of how such technologies may be used to
meet fuel economy standards to be prescribed under section
32902(k) of title 49, United States Code, as amended by this
subtitle; and
(5) associated costs and other impacts on the operation of
medium-duty and heavy-duty trucks, including congestion.

(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 1
year after the date on which the Secretary executes the agreement with
the Academy.

SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.

(a) In General.--Section 32906 of title 49, United States Code, is
amended to read as follows:

``Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles

``(a) In General.--For each of model years 1993 through 2019 for
each category of automobile (except an electric automobile), the maximum
increase in average fuel economy for a manufacturer attributable to dual
fueled automobiles is--
``(1) 1.2 miles a gallon for each of model years 1993
through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.

``(b) Calculation.--In applying subsection (a), the Administrator of
the Environmental Protection Agency shall determine the increase in a
manufacturer's average fuel economy attributable to dual fueled
automobiles by subtracting from the manufacturer's average fuel economy
calculated under section 32905(e) the number equal to what the
manufacturer's average fuel economy would be if it were calculated by
the formula under section 32904(a)(1) by including as the denominator
for each model of dual fueled automobiles the fuel economy when the
automobiles are operated on gasoline or diesel fuel.''.

[[Page 1506]]
121 STAT. 1506

(b) Conforming Amendments.--Section 32905 of title 49, United States
Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).

(c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of
title 49, United States Code, is amended to read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when operating
the model on alternative fuel; or
``(B) measured based on the fuel content of B20 when
operating the model on B20, which is deemed to contain
0.15 gallon of fuel.''.

SEC. 110. [NOTE: 42 USC 32908 note. PERIODIC REVIEW OF ACCURACY OF
FUEL ECONOMY LABELING PROCEDURES.

Beginning in [NOTE: Effective date. Deadlines. December 2009, and
not less often than every 5 years thereafter, the Administrator of the
Environmental Protection Agency, in consultation with the Secretary of
Transportation, shall--
(1) reevaluate the fuel economy labeling procedures
described in the final rule published in the Federal Register on
December 27, 2006 (71 Fed. Reg. 77,872; 40 CFR parts 86 and 600)
to determine whether changes in the factors used to establish
the labeling procedures warrant a revision of that process; and
(2) [NOTE: Reports. submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of Representatives
that describes the results of the reevaluation process.

SEC. 111. CONSUMER TIRE INFORMATION.

(a) In General.--Chapter 323 of title 49, United States Code, is
amended by inserting after section 32304 the following:

``Sec. 32304A. Consumer tire information

``(a) Rulemaking.--
``(1) In [NOTE: Deadline. general.--Not later than 24
months after the date of enactment of the Ten-in-Ten Fuel
Economy Act, the Secretary of Transportation shall, after notice
and opportunity for comment, promulgate rules establishing a
national tire fuel efficiency consumer information program for
replacement tires designed for use on motor vehicles to educate
consumers about the effect of tires on automobile fuel
efficiency, safety, and durability.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating system
for motor vehicle replacement tires to assist consumers
in making more educated tire purchasing decisions;
``(B) requirements for providing information to
consumers, including information at the point of sale
and other potential information dissemination methods,
including the Internet;

[[Page 1507]]
121 STAT. 1507

``(C) specifications for test methods for
manufacturers to use in assessing and rating tires to
avoid variation among test equipment and manufacturers;
and
``(D) a national tire maintenance consumer education
program including, information on tire inflation
pressure, alignment, rotation, and tread wear to
maximize fuel efficiency, safety, and durability of
replacement tires.
``(3) Applicability.--This section shall apply only to
replacement tires covered under section 575.104(c) of title 49,
Code of Federal Regulations, in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act.

``(b) Consultation.--The Secretary shall consult with the Secretary
of Energy and the Administrator of the Environmental Protection Agency
on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic
assessments of the rules promulgated under this section to determine the
utility of such rules to consumers, the level of cooperation by
industry, and the contribution to national goals pertaining to energy
consumption. The Secretary shall transmit periodic reports detailing the
findings of such assessments to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require permanent
labeling of any kind on a tire for the purpose of tire fuel efficiency
information.
``(e) Application With State and Local Laws and Regulations.--
Nothing in this section prohibits a State or political subdivision
thereof from enforcing a law or regulation on tire fuel efficiency
consumer information that was in effect on January 1, 2006. After a
requirement promulgated under this section is in effect, a State or
political subdivision thereof may adopt or enforce a law or regulation
on tire fuel efficiency consumer information enacted or promulgated
after January 1, 2006, if the requirements of that law or regulation are
identical to the requirement promulgated under this section. Nothing in
this section shall be construed to preempt a State or political
subdivision thereof from regulating the fuel efficiency of tires
(including establishing testing methods for determining compliance with
such standards) not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States Code, is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:

``(c) Section 32304A.--Any [NOTE: Penalties. person who fails to
comply with the national tire fuel efficiency information program under
section 32304A is liable to the United States Government for a civil
penalty of not more than $50,000 for each violation.''.

(c) Conforming Amendment.--The chapter analysis for chapter 323 of
title 49, United States Code, is amended by inserting after the item
relating to section 32304 the following:

``32304A. Consumer tire information''.

[[Page 1508]]
121 STAT. 1508

SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

Section 32912 of title 49, United States Code, is amended by adding
at the end the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal
year thereafter, from the total amount deposited in the general fund of
the Treasury during the preceding fiscal year from fines, penalties, and
other funds obtained through enforcement actions conducted pursuant to
this section (including funds obtained under consent decrees), the
Secretary of the Treasury, subject to the availability of
appropriations, shall--
``(1) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to support rulemaking under this
chapter; and
``(2) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to carry out a program to make
grants to manufacturers for retooling, reequipping, or expanding
existing manufacturing facilities in the United States to
produce advanced technology vehicles and components.''.

SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

(a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of
title 49, United States Code, are repealed.
(b) Effect of [NOTE: 49 USC 32904 note. Repeal on Existing
Exemptions.--Any exemption granted under section 32904(b)(6) of title
49, United States Code, prior to the date of the enactment of this Act
shall remain in effect subject to its terms through model year 2013.

(c) Accrual and Use of Credits.--Any manufacturer holding an
exemption under section 32904(b)(6) of title 49, United States Code,
prior to the date of the enactment of this Act may accrue and use
credits under sections 32903 and 32905 of such title beginning with
model year 2011.

Subtitle B--Improved Vehicle Technology

SEC. 131. [NOTE: 42 USC 17011. TRANSPORTATION ELECTRIFICATION.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Battery.--The term ``battery'' means an electrochemical
energy storage system powered directly by electrical current.
(3) Electric transportation technology.--The term ``electric
transportation technology'' means--
(A) technology used in vehicles that use an electric
motor for all or part of the motive power of the
vehicles, including battery electric, hybrid electric,
plug-in hybrid electric, fuel cell, and plug-in fuel
cell vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile
sources of air pollution that use an electric motor to
replace an internal combustion engine for all or part of
the work of the equipment, including--

[[Page 1509]]
121 STAT. 1509

(i) corded electric equipment linked to
transportation or mobile sources of air pollution;
and
(ii) electrification technologies at airports,
ports, truck stops, and material-handling
facilities.
(4) Nonroad vehicle.--The term ``nonroad vehicle'' means a
vehicle--
(A) powered--
(i) by a nonroad engine, as that term is
defined in section 216 of the Clean Air Act (42
U.S.C. 7550); or
(ii) fully or partially by an electric motor
powered by a fuel cell, a battery, or an off-board
source of electricity; and
(B) that is not a motor vehicle or a vehicle used
solely for competition.
(5) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source of
electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C. 7550)).
(6) Qualified electric transportation project.--The term
``qualified electric transportation project'' means an electric
transportation technology project that would significantly
reduce emissions of criteria pollutants, greenhouse gas
emissions, and petroleum, including--
(A) shipside or shoreside electrification for
vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery-powered auxiliary power units for
trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply
electricity to the project; and
(I) any ancillary infrastructure, including panel
upgrades, battery chargers, in-situ transformers, and
trenching.

(b) Plug-in Electric Drive Vehicle Program.--
(1) Establishment.--The Secretary shall establish a
competitive program to provide grants on a cost-shared basis to
State governments, local governments, metropolitan
transportation authorities, air pollution control districts,
private or nonprofit entities, or combinations of those
governments, authorities, districts, and entities, to carry out
one or more projects to encourage the use of plug-in electric
drive vehicles or other emerging electric vehicle technologies,
as determined by the Secretary.
(2) Administration.--The [NOTE: Grants. Secretary shall,
in consultation with the Secretary of Transportation and the
Administrator, establish requirements for applications for
grants under this section, including reporting of data to be
summarized for dissemination to grantees and the public,
including safety,

[[Page 1510]]
121 STAT. 1510

vehicle, and component performance, and vehicle and component
life cycle costs.
(3) Priority.--In making awards under this subsection, the
Secretary shall--
(A) give priority consideration to applications
that--
(i) encourage early widespread use of vehicles
described in paragraph (1); and
(ii) are likely to make a significant
contribution to the advancement of the production
of the vehicles in the United States; and
(B) ensure, to the maximum extent practicable, that
the program established under this subsection includes a
variety of applications, manufacturers, and end-uses.
(4) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the Secretary, on
an annual basis, data relating to safety, vehicle performance,
life cycle costs, and emissions of vehicles demonstrated under
the grant, including emissions of greenhouse gases.
(5) Cost [NOTE: Applicability. sharing.--Section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a
grant made under this subsection.
(6) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $90,000,000 for
each of fiscal years 2008 through 2012, of which not less than
\1/3\ of the total amount appropriated shall be available each
fiscal year to make grants to local and municipal governments.

(c) Near-Term [NOTE: Grants. Transportation Sector
Electrification Program.--
(1) In [NOTE: Deadline. general.--Not later than 1 year
after the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Transportation and the
Administrator, shall establish a program to provide grants for
the conduct of qualified electric transportation projects.
(2) Priority.--In providing grants under this subsection,
the Secretary shall give priority to large-scale projects and
large-scale aggregators of projects.
(3) Cost [NOTE: Applicability. sharing.--Section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a
grant made under this subsection.
(4) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $95,000,000 for
each of fiscal years 2008 through 2013.

(d) Education Program.--
(1) In general.--The Secretary shall develop a nationwide
electric drive transportation technology education program under
which the Secretary shall provide--
(A) teaching materials to secondary schools and high
schools; and
(B) assistance for programs relating to electric
drive system and component engineering to institutions
of higher education.
(2) Electric vehicle competition.--The program established
under paragraph (1) shall include a plug-in hybrid electric
vehicle competition for institutions of higher education, which
shall be known as the ``Dr. Andrew Frank Plug-In Electric
Vehicle Competition''.

[[Page 1511]]
121 STAT. 1511

(3) Engineers.--In carrying out the program established
under paragraph (1), the Secretary shall provide financial
assistance to institutions of higher education to create new, or
support existing, degree programs to ensure the availability of
trained electrical and mechanical engineers with the skills
necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation
technology vehicles.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.

SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is
amended to read as follows:

``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

``(a) Program.--
``(1) In general.--The Secretary shall establish a program
to encourage domestic production and sales of efficient hybrid
and advanced diesel vehicles and components of those vehicles.
``(2) Inclusions.--The program shall include grants to
automobile manufacturers and suppliers and hybrid component
manufacturers to encourage domestic production of efficient
hybrid, plug-in electric hybrid, plug-in electric drive, and
advanced diesel vehicles.
``(3) Priority.--Priority shall be given to the
refurbishment or retooling of manufacturing facilities that have
recently ceased operation or will cease operation in the near
future.

``(b) Coordination With State and Local Programs.--The Secretary may
coordinate implementation of this section with State and local programs
designed to accomplish similar goals, including the retention and
retraining of skilled workers from the manufacturing facilities,
including by establishing matching grant arrangements.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out
this section.''.

SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:

``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel cell
electric vehicle' means an on-road or non-road vehicle that uses
a fuel cell (as defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid electric
vehicle' means a new qualified hybrid motor vehicle (as defined
in section 30B(d)(3) of the Internal Revenue Code of 1986).

[[Page 1512]]
121 STAT. 1512

``(3) Medium- or heavy-duty electric vehicle.--The term
`medium- or heavy-duty electric vehicle' means an electric,
hybrid electric, or plug-in hybrid electric vehicle with a gross
vehicle weight of more than 8,501 pounds.
``(4) Neighborhood electric vehicle.--The term `neighborhood
electric vehicle' means a 4-wheeled on-road or nonroad vehicle
that--
``(A) has a top attainable speed in 1 mile of more
than 20 mph and not more than 25 mph on a paved level
surface; and
``(B) is propelled by an electric motor and on-
board, rechargeable energy storage system that is
rechargeable using an off-board source of electricity.
``(5) Plug-in electric drive vehicle.--The term `plug-in
electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
``(B) can be recharged from an external source of
electricity for motive power; and
``(C) is a light-, medium-, or heavy duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C.
7550)).'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric [NOTE: Deadline. vehicles.--Not later than
January 31, 2009, the Secretary shall--
``(A) allocate credit in an amount to be determined
by the Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in electric drive
vehicle;
``(III) a fuel cell electric
vehicle;
``(IV) a neighborhood electric
vehicle; or
``(V) a medium- or heavy-duty
electric vehicle; and
``(ii) investment in qualified alternative
fuel infrastructure or nonroad equipment, as
determined by the Secretary; and
``(B) allocate more than 1, but not to exceed 5,
credits for investment in an emerging technology
relating to any vehicle described in subparagraph (A) to
encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)), by
striking ``subsection (a)'' and inserting ``subsection (b)'';
and
(5) by adding at the end the following:

``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2013.''.

[[Page 1513]]
121 STAT. 1513

SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.

(a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005
(42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by
inserting ``and loan guarantees under section 1703'' after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and
inserting the following:
``(8) Production facilities for the manufacture of fuel
efficient vehicles or parts of those vehicles, including
electric drive vehicles and advanced diesel vehicles.''.

SEC. 135. [NOTE: 42 USC 17012. ADVANCED BATTERY LOAN GUARANTEE
PROGRAM.

(a) Establishment of Program.--The Secretary shall establish a
program to provide guarantees of loans by private institutions for the
construction of facilities for the manufacture of advanced vehicle
batteries and battery systems that are developed and produced in the
United States, including advanced lithium ion batteries and hybrid
electrical system and component manufacturers and software designers.
(b) Requirements.--The Secretary may provide a loan guarantee under
subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to the
applicant under reasonable terms or conditions sufficient to
finance the construction of a facility described in subsection
(a);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a reasonable
assurance of repayment of the loan to be guaranteed in
accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity of
the loan.

(c) Criteria.--In selecting recipients of loan guarantees from among
applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need
for the facility.

(d) Maturity.--A loan guaranteed under subsection (a) shall have a
maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan guaranteed
under subsection (a) shall provide that no provision of the loan
agreement may be amended or waived without the consent of the Secretary.
(f) Assurance of Repayment.--The Secretary shall require that an
applicant for a loan guarantee under subsection (a) provide an assurance
of repayment in the form of a performance bond, insurance, collateral,
or other means acceptable to the Secretary in an amount equal to not
less than 20 percent of the amount of the loan.

[[Page 1514]]
121 STAT. 1514

(g) Guarantee Fee.--The recipient of a loan guarantee under
subsection (a) shall pay the Secretary an amount determined by the
Secretary to be sufficient to cover the administrative costs of the
Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed loan.
(i) Reports.--Until each guaranteed loan under this section has been
repaid in full, the Secretary shall annually submit to Congress a report
on the activities of the Secretary under this section.
(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(k) Termination of Authority.--The authority of the Secretary to
issue a loan guarantee under subsection (a) terminates on the date that
is 10 years after the date of enactment of this Act.

SEC. 136. [NOTE: 42 USC 17013. ADVANCED TECHNOLOGY VEHICLES
MANUFACTURING INCENTIVE PROGRAM.

(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established
in regulations issued by the Administrator of the
Environmental Protection Agency under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)), or a lower-
numbered Bin emission standard;
(B) any new emission standard in effect for fine
particulate matter prescribed by the Administrator under
that Act (42 U.S.C. 7401 et seq.); and
(C) at least 125 percent of the average base year
combined fuel economy for vehicles with substantially
similar attributes.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per gallon
values, as reported in accordance with section 32904 of
title 49, United States Code; and
(B) in the case of an electric drive vehicle with
the ability to recharge from an off-board source, the
reported mileage, as determined in a manner consistent
with the Society of Automotive Engineers recommended
practice for that configuration or a similar practice
recommended by the Secretary.
(3) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporating qualifying components into the
design of advanced technology vehicles; and

[[Page 1515]]
121 STAT. 1515

(B) designing tooling and equipment and developing
manufacturing processes and material suppliers for
production facilities that produce qualifying components
or advanced technology vehicles.
(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines to
be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.

(b) Advanced [NOTE: Awards. Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this section to
automobile manufacturers and component suppliers to pay not more than 30
percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States
of qualifying vehicles and qualifying components.

(c) Period of [NOTE: Applicability. Availability.--An award under
subsection (b) shall apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the period
beginning on the date of enactment of this Act and ending on
December 30, 2020.

(d) Direct Loan Program.--
(1) In [NOTE: Deadline. general.--Not later than 1 year
after the date of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall carry
out a program to provide a total of not more than
$25,000,000,000 in loans to eligible individuals and entities
(as determined by the Secretary) for the costs of activities
described in subsection (b).
(2) Application.--An applicant for a loan under this
subsection shall submit to the Secretary an application at such
time, in such manner, and containing such information as the
Secretary may require, including a written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during construction,
alteration, or repair that is financed, in whole or in
part, by a loan under this section shall be paid wages
at rates not less than those prevailing on similar
construction in the locality, as determined by the
Secretary of Labor in accordance with sections 3141-
3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(3) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this subsection
in cases in which, as determined by the Secretary, the award
recipient--
(A) is financially viable without the receipt of
additional Federal funding associated with the proposed
project;

[[Page 1516]]
121 STAT. 1516

(B) will provide sufficient information to the
Secretary for the Secretary to ensure that the qualified
investment is expended efficiently and effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the date
on which the loan is made, is equal to the cost of funds
to the Department of the Treasury for obligations of
comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the
eligible project to be carried out using funds
from the loan, as determined by the Secretary; and
(ii) 25 years;
(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using funds from the loan
first begins operations, as determined by the Secretary;
and
(D) shall be made by the Federal Financing Bank.

(e) Improvement.--The [NOTE: Regulations. Secretary shall issue
regulations that require that, in order for an automobile manufacturer
to be eligible for an award or loan under this section during a
particular year, the adjusted average fuel economy of the manufacturer
for light duty vehicles produced by the manufacturer during the most
recent year for which data are available shall be not less than the
average fuel economy for all light duty vehicles of the manufacturer for
model year 2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has not
produced previously produced equivalent vehicles, the Secretary may
substitute industry averages.

(f) Fees.--Administrative costs shall be no more than $100,000 or 10
basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or loans to
those manufacturers that have existing facilities, give priority to
those facilities that are oldest or have been in existence for at least
20 years. Such facilities can currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and Component
Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of
automobiles.
(2) Set aside.--Of the amount of funds that are used to
provide awards for each fiscal year under subsection (b), the
Secretary shall use not less than 10 percent to provide awards
to covered firms or consortia led by a covered firm.

(i) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.

[[Page 1517]]
121 STAT. 1517

Subtitle C--Federal Vehicle Fleets

SEC. 141. FEDERAL VEHICLE FLEETS.

Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:

``(f) Vehicle Emission Requirements.--
``(1) Definitions.--In this subsection:
``(A) Federal agency.--The term `Federal agency'
does not include any office of the legislative branch,
except that it does include the House of Representatives
with respect to an acquisition described in paragraph
(2)(C).
``(B) Medium duty passenger vehicle.--The term
`medium duty passenger vehicle' has the meaning given
that term section 523.2 of title 49 of the Code of
Federal Regulations, as in effect on the date of
enactment of this paragraph.
``(C) Member's representational allowance.--The term
`Member's Representational Allowance' means the
allowance described in section 101(a) of the House of
Representatives Administrative Reform Technical
Corrections Act (2 U.S.C. 57b(a)).
``(2) Prohibition.--
``(A) In general.--Except as provided in
subparagraph (B), no Federal agency shall acquire a
light duty motor vehicle or medium duty passenger
vehicle that is not a low greenhouse gas emitting
vehicle.
``(B) Exception.--
The [NOTE: Certification. prohibition in subparagraph
(A) shall not apply to acquisition of a vehicle if the
head of the agency certifies in writing, in a separate
certification for each individual vehicle purchased,
either--
``(i) that no low greenhouse gas emitting
vehicle is available to meet the functional needs
of the agency and details in writing the
functional needs that could not be met with a low
greenhouse gas emitting vehicle; or
``(ii) that the agency has taken specific
alternative more cost-effective measures to reduce
petroleum consumption that--
``(I) have reduced a measured and
verified quantity of greenhouse gas
emissions equal to or greater than the
quantity of greenhouse gas reductions
that would have been achieved through
acquisition of a low greenhouse gas
emitting vehicle over the lifetime of
the vehicle; or
``(II) will reduce each year a
measured and verified quantity of
greenhouse gas emissions equal to or
greater than the quantity of greenhouse
gas reductions that would have been
achieved each year through acquisition
of a low greenhouse gas emitting
vehicle.
``(C) Special [NOTE: Applicability. rule for
vehicles provided by funds contained in members'
representational allowance.--This paragraph shall apply
to the acquisition of a light

[[Page 1518]]
121 STAT. 1518

duty motor vehicle or medium duty passenger vehicle
using any portion of a Member's Representational
Allowance, including an acquisition under a long-term
lease.
``(3) Guidance.--
``(A) In general.--Each year, the Administrator of
the Environmental Protection Agency shall issue guidance
identifying the makes and model numbers of vehicles that
are low greenhouse gas emitting vehicles.
``(B) Consideration.--In identifying vehicles under
subparagraph (A), the Administrator shall take into
account the most stringent standards for vehicle
greenhouse gas emissions applicable to and enforceable
against motor vehicle manufacturers for vehicles sold
anywhere in the United States.
``(C) Requirement.--The Administrator shall not
identify any vehicle as a low greenhouse gas emitting
vehicle if the vehicle emits greenhouse gases at a
higher rate than such standards allow for the
manufacturer's fleet average grams per mile of carbon
dioxide-equivalent emissions for that class of vehicle,
taking into account any emissions allowances and
adjustment factors such standards provide.''.

SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.

Part J of title III of the Energy Policy and Conservation Act (42
U.S.C. 6374 et seq.) is amended by adding at the end the following:

``SEC. 400FF. [NOTE: 42 USC 6374e. FEDERAL FLEET CONSERVATION
REQUIREMENTS.

``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In [NOTE: Deadline. Regulations. general.--Not
later than 18 months after the date of enactment of this
section, the Secretary shall issue regulations for Federal
fleets subject to section 400AA to require that, beginning in
fiscal year 2010, each Federal agency shall reduce petroleum
consumption and increase alternative fuel consumption each year
by an amount necessary to meet the goals described in paragraph
(2).
``(2) Goals.--The [NOTE: Deadline. goals of the
requirements under paragraph (1) are that not later than October
1, 2015, and for each year thereafter, each Federal agency shall
achieve at least a 20 percent reduction in annual petroleum
consumption and a 10 percent increase in annual alternative fuel
consumption, as calculated from the baseline established by the
Secretary for fiscal year 2005.
``(3) Milestones.--The Secretary shall include in the
regulations described in paragraph (1)--
``(A) interim numeric milestones to assess annual
agency progress towards accomplishing the goals
described in that paragraph; and
``(B) a requirement that agencies annually report on
progress towards meeting each of the milestones and the
2015 goals.

``(b) Plan.--
``(1) Requirement.--
``(A) In general.--The regulations under subsection
(a) shall require each Federal agency to develop a plan,
and implement the measures specified in the plan by
dates

[[Page 1519]]
121 STAT. 1519

specified in the plan, to meet the required petroleum
reduction levels and the alternative fuel consumption
increases, including the milestones specified by the
Secretary.
``(B) Inclusions.--The plan shall--
``(i) identify the specific measures the
agency will use to meet the requirements of
subsection (a)(2); and
``(ii) quantify the reductions in petroleum
consumption or increases in alternative fuel
consumption projected to be achieved by each
measure each year.
``(2) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher fuel
economy, including hybrid vehicles, neighborhood
electric vehicles, electric vehicles, and plug-in hybrid
vehicles if the vehicles are commercially available;
``(C) the substitution of cars for light trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.

TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

Subtitle A--Renewable Fuel Standard

SEC. 201. DEFINITIONS.

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended to read as follows:
``(1) Definitions.--In this section:
``(A) Additional renewable fuel.--The term
`additional renewable fuel' means fuel that is produced
from renewable biomass and that is used to replace or
reduce the quantity of fossil fuel present in home
heating oil or jet fuel.
``(B) Advanced biofuel.--
``(i) In general.--The term `advanced biofuel'
means renewable fuel, other than ethanol derived
from corn starch, that has lifecycle greenhouse
gas emissions, as determined by the Administrator,
after notice and opportunity for comment, that are
at least 50 percent less than baseline lifecycle
greenhouse gas emissions.
``(ii) Inclusions.--The types of fuels
eligible for consideration as `advanced biofuel'
may include any of the following:
``(I) Ethanol derived from
cellulose, hemicellulose, or lignin.
``(II) Ethanol derived from sugar or
starch (other than corn starch).
``(III) Ethanol derived from waste
material, including crop residue, other
vegetative waste material, animal waste,
and food waste and yard waste.

[[Page 1520]]
121 STAT. 1520

``(IV) Biomass-based diesel.
``(V) Biogas (including landfill gas
and sewage waste treatment gas) produced
through the conversion of organic matter
from renewable biomass.
``(VI) Butanol or other alcohols
produced through the conversion of
organic matter from renewable biomass.
``(VII) Other fuel derived from
cellulosic biomass.
``(C) Baseline lifecycle greenhouse gas emissions.--
The term `baseline lifecycle greenhouse gas emissions'
means the average lifecycle greenhouse gas emissions, as
determined by the Administrator, after notice and
opportunity for comment, for gasoline or diesel
(whichever is being replaced by the renewable fuel) sold
or distributed as transportation fuel in 2005.
``(D) Biomass-based [NOTE: Notice. diesel.--The
term `biomass-based diesel' means renewable fuel that is
biodiesel as defined in section 312(f) of the Energy
Policy Act of 1992 (42 U.S.C. 13220(f)) and that has
lifecycle greenhouse gas emissions, as determined by the
Administrator, after notice and opportunity for comment,
that are at least 50 percent less than the baseline
lifecycle greenhouse gas emissions. Notwithstanding the
preceding sentence, renewable fuel derived from co-
processing biomass with a petroleum feedstock shall be
advanced biofuel if it meets the requirements of
subparagraph (B), but is not biomass-based diesel.
``(E) Cellulosic biofuel.--The term `cellulosic
biofuel' means renewable fuel derived from any
cellulose, hemicellulose, or lignin that is derived from
renewable biomass and that has lifecycle greenhouse gas
emissions, as determined by the Administrator, that are
at least 60 percent less than the baseline lifecycle
greenhouse gas emissions.
``(F) Conventional biofuel.--The term `conventional
biofuel' means renewable fuel that is ethanol derived
from corn starch.
``(G) Greenhouse gas.--The term `greenhouse gas'
means carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, sulfur hexafluoride.
The Administrator may include any other
anthropogenically-emitted gas that is determined by the
Administrator, after notice and comment, to contribute
to global warming.
``(H) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the aggregate
quantity of greenhouse gas emissions (including direct
emissions and significant indirect emissions such as
significant emissions from land use changes), as
determined by the Administrator, related to the full
fuel lifecycle, including all stages of fuel and
feedstock production and distribution, from feedstock
generation or extraction through the distribution and
delivery and use of the finished fuel to the ultimate
consumer, where the mass values for all greenhouse gases
are adjusted to account for their relative global
warming potential.
``(I) Renewable biomass.--The term `renewable
biomass' means each of the following:

[[Page 1521]]
121 STAT. 1521

``(i) Planted crops and crop residue harvested
from agricultural land cleared or cultivated at
any time prior to the enactment of this sentence
that is either actively managed or fallow, and
nonforested.
``(ii) Planted trees and tree residue from
actively managed tree plantations on non-federal
land cleared at any time prior to enactment of
this sentence, including land belonging to an
Indian tribe or an Indian individual, that is held
in trust by the United States or subject to a
restriction against alienation imposed by the
United States.
``(iii) Animal waste material and animal
byproducts.
``(iv) Slash and pre-commercial thinnings that
are from non-federal forestlands, including
forestlands belonging to an Indian tribe or an
Indian individual, that are held in trust by the
United States or subject to a restriction against
alienation imposed by the United States, but not
forests or forestlands that are ecological
communities with a global or State ranking of
critically imperiled, imperiled, or rare pursuant
to a State Natural Heritage Program, old growth
forest, or late successional forest.
``(v) Biomass obtained from the immediate
vicinity of buildings and other areas regularly
occupied by people, or of public infrastructure,
at risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food waste,
including recycled cooking and trap grease.
``(J) Renewable fuel.--The term `renewable fuel'
means fuel that is produced from renewable biomass and
that is used to replace or reduce the quantity of fossil
fuel present in a transportation fuel.
``(K) Small refinery.--The term `small refinery'
means a refinery for which the average aggregate daily
crude oil throughput for a calendar year (as determined
by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does
not exceed 75,000 barrels.
``(L) Transportation fuel.--The term `transportation
fuel' means fuel for use in motor vehicles, motor
vehicle engines, nonroad vehicles, or nonroad engines
(except for ocean-going vessels).''.

SEC. 202. RENEWABLE FUEL STANDARD.

(a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42
U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
(1) Regulations.--Clause (i) of subparagraph (A) is amended
by adding the [NOTE: Deadline. following at the end thereof:
``Not later than 1 year after the date of enactment of this
sentence, the Administrator shall revise the regulations under
this paragraph to ensure that transportation fuel sold or
introduced into commerce in the United States (except in
noncontiguous States or territories), on an annual average
basis, contains at least the applicable volume of renewable
fuel, advanced biofuel, cellulosic biofuel, and biomass-based
diesel, determined

[[Page 1522]]
121 STAT. 1522

in accordance with subparagraph (B) and, in the case of any such
renewable fuel produced from new facilities that commence
construction after the date of enactment of this sentence,
achieves at least a 20 percent reduction in lifecycle greenhouse
gas emissions compared to baseline lifecycle greenhouse gas
emissions.''.
(2) Applicable volumes of renewable fuel.--Subparagraph (B)
is amended to read as follows:
``(B) Applicable volumes.--
``(i) Calendar years after 2005.--
``(I) Renewable fuel.--For the
purpose of subparagraph (A), the
applicable volume of renewable fuel for
the calendar years 2006 through 2022
shall be determined in accordance with
the following table:

Applicable volume of renewable fuel.......
``Calendar(in billions of gallons):.................
2006..................................   4.0
2007..................................   4.7
2008..................................   9.0
2009..................................  11.1
2010.................................. 12.95
2011.................................. 13.95
2012..................................  15.2
2013.................................. 16.55
2014.................................. 18.15
2015..................................  20.5
2016.................................. 22.25
2017..................................  24.0
2018..................................  26.0
2019..................................  28.0
2020..................................  30.0
2021..................................  33.0
2022..................................  36.0

``(II) Advanced biofuel.--For the
purpose of subparagraph (A), of the
volume of renewable fuel required under
subclause (I), the applicable volume of
advanced biofuel for the calendar years
2009 through 2022 shall be determined in
accordance with the following table:

Applicable volume of advanced biofuel.....
``Calendar(in billions of gallons):.................
2009..................................   0.6
2010..................................  0.95
2011..................................  1.35
2012..................................   2.0
2013..................................  2.75
2014..................................  3.75
2015..................................   5.5
2016..................................  7.25
2017..................................   9.0
2018..................................  11.0
2019..................................  13.0
2020..................................  15.0
2021..................................  18.0
2022..................................  21.0


[[Page 1523]]
121 STAT. 1523


``(III) Cellulosic biofuel.--For the
purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of cellulosic biofuel for the
calendar years 2010 through 2022 shall
be determined in accordance with the
following table:

Applicable volume of cellulosic biofuel...
``Calendar(in billions of gallons):.................
2010..................................   0.1
2011..................................  0.25
2012..................................   0.5
2013..................................   1.0
2014..................................  1.75
2015..................................   3.0
2016..................................  4.25
2017..................................   5.5
2018..................................   7.0
2019..................................   8.5
2020..................................  10.5
2021..................................  13.5
2022..................................  16.0

``(IV) Biomass-based diesel.--For
the purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of biomass-based diesel for the
calendar years 2009 through 2012 shall
be determined in accordance with the
following table:

Applicable volume of biomass-based diesel.
``Calendar(in billions of gallons):.................
2009..................................   0.5
2010..................................  0.65
2011..................................  0.80
2012..................................   1.0

``(ii) Other calendar years.--For the purposes
of subparagraph (A), the applicable volumes of
each fuel specified in the tables in clause (i)
for calendar years after the calendar years
specified in the tables shall be determined by the
Administrator, in coordination with the Secretary
of Energy and the Secretary of Agriculture, based
on a review of the implementation of the program
during calendar years specified in the tables, and
an analysis of--
``(I) the impact of the production
and use of renewable fuels on the
environment, including on air quality,
climate change, conversion of wetlands,
ecosystems, wildlife habitat, water
quality, and water supply;
``(II) the impact of renewable fuels
on the energy security of the United
States;
``(III) the expected annual rate of
future commercial production of
renewable fuels, including advanced
biofuels in each category (cellulosic
biofuel and biomass-based diesel);

[[Page 1524]]
121 STAT. 1524

``(IV) the impact of renewable fuels
on the infrastructure of the United
States, including deliverability of
materials, goods, and products other
than renewable fuel, and the sufficiency
of infrastructure to deliver and use
renewable fuel;
``(V) the impact of the use of
renewable fuels on the cost to consumers
of transportation fuel and on the cost
to transport goods; and
``(VI) the impact of the use of
renewable fuels on other factors,
including job creation, the price and
supply of agricultural commodities,
rural economic development, and food
prices.
The [NOTE: Regulations. Deadline. Administrator
shall promulgate rules establishing the applicable
volumes under this clause no later than 14 months
before the first year for which such applicable
volume will apply.
``(iii) Applicable volume of advanced
biofuel.--For the purpose of making the
determinations in clause (ii), for each calendar
year, the applicable volume of advanced biofuel
shall be at least the same percentage of the
applicable volume of renewable fuel as in calendar
year 2022.
``(iv) Applicable volume of cellulosic
biofuel.--For the purpose of making the
determinations in clause (ii), for each calendar
year, the applicable volume of cellulosic biofuel
established by the Administrator shall be based on
the assumption that the Administrator will not
need to issue a waiver for such years under
paragraph (7)(D).
``(v) Minimum applicable volume of biomass-
based diesel.--For the purpose of making the
determinations in clause (ii), the applicable
volume of biomass-based diesel shall not be less
than the applicable volume listed in clause
(i)(IV) for calendar year 2012.''.

(b) Applicable Percentages.--Paragraph (3) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
(1) In subparagraph (A), by striking ``2011'' and inserting
``2021''.
(2) In subparagraph (A), by striking ``gasoline'' and
inserting ``transportation fuel, biomass-based diesel, and
cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and inserting
``2021'' in clause (i).
(4) In subparagraph (B), by striking ``gasoline'' and
inserting ``transportation fuel'' in clause (ii)(II).

(c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended to
read as follows:
``(4) Modification of greenhouse gas reduction
percentages.--
``(A) In general.--The Administrator may, in the
regulations under the last sentence of paragraph
(2)(A)(i), adjust the 20 percent, 50 percent, and 60
percent reductions in lifecycle greenhouse gas emissions
specified in paragraphs (2)(A)(i) (relating to renewable
fuel), (1)(D) (relating to biomass-based diesel),
(1)(B)(i) (relating to advanced biofuel),

[[Page 1525]]
121 STAT. 1525

and (1)(E) (relating to cellulosic biofuel) to a lower
percentage. For the 50 and 60 percent reductions, the
Administrator may make such an adjustment only if he
determines that generally such reduction is not
commercially feasible for fuels made using a variety of
feedstocks, technologies, and processes to meet the
applicable reduction.
``(B) Amount of adjustment.--In promulgating
regulations under this paragraph, the specified 50
percent reduction in greenhouse gas emissions from
advanced biofuel and in biomass-based diesel may not be
reduced below 40 percent. The specified 20 percent
reduction in greenhouse gas emissions from renewable
fuel may not be reduced below 10 percent, and the
specified 60 percent reduction in greenhouse gas
emissions from cellulosic biofuel may not be reduced
below 50 percent.
``(C) Adjusted reduction levels.--An adjustment
under this paragraph to a percent less than the
specified 20 percent greenhouse gas reduction for
renewable fuel shall be the minimum possible adjustment,
and the adjusted greenhouse gas reduction shall be
established by the Administrator at the maximum
achievable level, taking cost in consideration, for
natural gas fired corn-based ethanol plants, allowing
for the use of a variety of technologies and processes.
An adjustment in the 50 or 60 percent greenhouse gas
levels shall be the minimum possible adjustment for the
fuel or fuels concerned, and the adjusted greenhouse gas
reduction shall be established at the maximum achievable
level, taking cost in consideration, allowing for the
use of a variety of feedstocks, technologies, and
processes.
``(D) 5-year [NOTE: Deadline. review.--Whenever
the Administrator makes any adjustment under this
paragraph, not later than 5 years thereafter he shall
review and revise (based upon the same criteria and
standards as required for the initial adjustment) the
regulations establishing the adjusted level.
``(E) Subsequent adjustments.--After the
Administrator has promulgated a final rule under the
last sentence of paragraph (2)(A)(i) with respect to the
method of determining lifecycle greenhouse gas
emissions, except as provided in subparagraph (D), the
Administrator may not adjust the percent greenhouse gas
reduction levels unless he determines that there has
been a significant change in the analytical methodology
used for determining the lifecycle greenhouse gas
emissions. If he makes such determination, he may adjust
the 20, 50, or 60 percent reduction levels through
rulemaking using the criteria and standards set forth in
this paragraph.
``(F) Limit on upward adjustments.--If, under
subparagraph (D) or (E), the Administrator revises a
percent level adjusted as provided in subparagraphs (A),
(B), and (C) to a higher percent, such higher percent
may not exceed the applicable percent specified in
paragraph (2)(A)(i), (1)(D), (1)(B)(i), or (1)(E).
``(G) Applicability of adjustments.--If the
Administrator adjusts, or revises, a percent level
referred to in

[[Page 1526]]
121 STAT. 1526

this paragraph or makes a change in the analytical
methodology used for determining the lifecycle
greenhouse gas emissions, such adjustment, revision, or
change (or any combination thereof) shall only apply to
renewable fuel from new facilities that commence
construction after the effective date of such
adjustment, revision, or change.''.

(d) Credits for Additional Renewable Fuel.--Paragraph (5) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended by adding
the following new subparagraph at the end thereof:
``(E) Credits for additional renewable fuel.--The
Administrator may issue regulations providing: (i) for
the generation of an appropriate amount of credits by
any person that refines, blends, or imports additional
renewable fuels specified by the Administrator; and (ii)
for the use of such credits by the generator, or the
transfer of all or a portion of the credits to another
person, for the purpose of complying with paragraph
(2).''.

(e) Waivers.--
(1) In general.--Paragraph (7)(A) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting
``, by any person subject to the requirements of this
subsection, or by the Administrator on his own motion'' after
``one or more States'' in subparagraph (A) and by striking out
``State'' in subparagraph (B).
(2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of
the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(D) Cellulosic [NOTE: Deadline. biofuel.--(i)
For any calendar year for which the projected volume of
cellulosic biofuel production is less than the minimum
applicable volume established under paragraph (2)(B), as
determined by the Administrator based on the estimate
provided under paragraph (3)(A), not later than November
30 of the preceding calendar year, the Administrator
shall reduce the applicable volume of cellulosic biofuel
required under paragraph (2)(B) to the projected volume
available during that calendar year. For any calendar
year in which the Administrator makes such a reduction,
the Administrator may also reduce the applicable volume
of renewable fuel and advanced biofuels requirement
established under paragraph (2)(B) by the same or a
lesser volume.
``(ii) Whenever the Administrator reduces the
minimum cellulosic biofuel volume under this
subparagraph, the Administrator shall make available for
sale cellulosic biofuel credits at the higher of $0.25
per gallon or the amount by which $3.00 per gallon
exceeds the average wholesale price of a gallon of
gasoline in the United States. Such amounts shall be
adjusted for inflation by the Administrator for years
after 2008.
``(iii) [NOTE: Deadline. Regulations. Eighteen
months after the date of enactment of this subparagraph,
the Administrator shall promulgate regulations to govern
the issuance of credits under this subparagraph. The
regulations shall set forth the method for determining
the exact price of credits in the event of a waiver. The
price of such credits shall not be changed more
frequently than once each quarter. These regulations

[[Page 1527]]
121 STAT. 1527

shall include such provisions, including limiting the
credits' uses and useful life, as the Administrator
deems appropriate to assist market liquidity and
transparency, to provide appropriate certainty for
regulated entities and renewable fuel producers, and to
limit any potential misuse of cellulosic biofuel credits
to reduce the use of other renewable fuels, and for such
other purposes as the Administrator determines will help
achieve the goals of this subsection. The regulations
shall limit the number of cellulosic biofuel credits for
any calendar year to the minimum applicable volume (as
reduced under this subparagraph) of cellulosic biofuel
for that year.''.
(3) Biomass-based diesel.--Paragraph (7) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(E) Biomass-based diesel.--
``(i) Market evaluation.--The Administrator,
in consultation with the Secretary of Energy and
the Secretary of Agriculture, shall periodically
evaluate the impact of the biomass-based diesel
requirements established under this paragraph on
the price of diesel fuel.
``(ii) Waiver.--If the Administrator
determines that there is a significant renewable
feedstock disruption or other market circumstances
that would make the price of biomass-based diesel
fuel increase significantly, the Administrator, in
consultation with the Secretary of Energy and the
Secretary of Agriculture, shall issue an order to
reduce, for up to a 60-day period, the quantity of
biomass-based diesel required under subparagraph
(A) by an appropriate quantity that does not
exceed 15 percent of the applicable annual
requirement for biomass-based diesel. For any
calendar year in which the Administrator makes a
reduction under this subparagraph, the
Administrator may also reduce the applicable
volume of renewable fuel and advanced biofuels
requirement established under paragraph (2)(B) by
the same or a lesser volume.
``(iii) Extensions.--If the Administrator
determines that the feedstock disruption or
circumstances described in clause (ii) is
continuing beyond the 60-day period described in
clause (ii) or this clause, the Administrator, in
consultation with the Secretary of Energy and the
Secretary of Agriculture, may issue an order to
reduce, for up to an additional 60-day period, the
quantity of biomass-based diesel required under
subparagraph (A) by an appropriate quantity that
does not exceed an additional 15 percent of the
applicable annual requirement for biomass-based
diesel.
``(F) Modification
of [NOTE: Regulations. Deadline. applicable
volumes.--For any of the tables in paragraph (2)(B), if
the Administrator waives--
``(i) at least 20 percent of the applicable
volume requirement set forth in any such table for
2 consecutive years; or

[[Page 1528]]
121 STAT. 1528

``(ii) at least 50 percent of such volume
requirement for a single year,
the Administrator shall promulgate a rule (within 1 year
after issuing such waiver) that modifies the applicable
volumes set forth in the table concerned for all years
following the final year to which the waiver applies,
except that no such modification in applicable volumes
shall be made for any year before 2016. In promulgating
such a rule, the Administrator shall comply with the
processes, criteria, and standards set forth in
paragraph (2)(B)(ii).''.

SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.

(a) In [NOTE: Contracts. General.--The Secretary of Energy, in
consultation with the Secretary of Agriculture and the Administrator of
the Environmental Protection Agency, shall enter into an arrangement
with the National Academy of Sciences under which the Academy shall
conduct a study to assess the impact of the requirements described in
section 211(o) of the Clean Air Act on each industry relating to the
production of feed grains, livestock, food, forest products, and energy.

(b) Participation.--In conducting the study under this section, the
National Academy of Sciences shall seek the participation, and consider
the input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork products;
(3) producers of food and food products;
(4) producers of energy;
(5) individuals and entities interested in issues relating
to conservation, the environment, and nutrition;
(6) users and consumers of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.

(c) Considerations.--In conducting the study, the National Academy
of Sciences shall consider--
(1) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly below
current projections;
(2) policy options to alleviate the impact on domestic
animal agriculture feedstocks that are significantly below
current projections; and
(3) policy options to maintain regional agricultural and
silvicultural capability.

(d) Components.--The study shall include--
(1) a description of the conditions under which the
requirements described in section 211(o) of the Clean Air Act
should be suspended or reduced to prevent adverse impacts to
domestic animal agriculture feedstocks described in subsection
(c)(2) or regional agricultural and silvicultural capability
described in subsection (c)(3); and
(2) recommendations for the means by which the Federal
Government could prevent or minimize adverse economic hardships
and impacts.

(e) Deadline [NOTE: Reports. for Completion of Study.--Not later
than 18 months after the date of enactment of this Act, the Secretary
shall submit to Congress a report that describes the results of the
study under this section.

[[Page 1529]]
121 STAT. 1529

(f) Periodic [NOTE: 42 USC 7545. Reviews.--Section 211(o) of the
Clean Air Act is amended by adding the following at the end thereof:
``(11) Periodic reviews.--To allow for the appropriate
adjustment of the requirements described in subparagraph (B) of
paragraph (2), the Administrator shall conduct periodic reviews
of--
``(A) existing technologies;
``(B) the feasibility of achieving compliance with
the requirements; and
``(C) the impacts of the requirements described in
subsection (a)(2) on each individual and entity
described in paragraph (2).''.

SEC. 204. [NOTE: 42 USC 7545 note. ENVIRONMENTAL AND RESOURCE
CONSERVATION IMPACTS.

(a) In [NOTE: Deadlines. Reports. General.--Not later than 3
years after the enactment of this section and every 3 years thereafter,
the Administrator of the Environmental Protection Agency, in
consultation with the Secretary of Agriculture and the Secretary of
Energy, shall assess and report to Congress on the impacts to date and
likely future impacts of the requirements of section 211(o) of the Clean
Air Act on the following:
(1) Environmental issues, including air quality, effects on
hypoxia, pesticides, sediment, nutrient and pathogen levels in
waters, acreage and function of waters, and soil environmental
quality.
(2) Resource conservation issues, including soil
conservation, water availability, and ecosystem health and
biodiversity, including impacts on forests, grasslands, and
wetlands.
(3) The growth and use of cultivated invasive or noxious
plants and their impacts on the environment and agriculture.

In advance of preparing the report required by this subsection, the
Administrator may seek the views of the National Academy of Sciences or
another appropriate independent research institute. The report shall
include the annual volume of imported renewable fuels and feedstocks for
renewable fuels, and the environmental impacts outside the United States
of producing such fuels and feedstocks. The report required by this
subsection shall include recommendations for actions to address any
adverse impacts found.
(b) Effect on Air Quality and Other Environmental Requirements.--
Except as provided in section 211(o)(12) of the Clean Air Act, nothing
in the amendments made by this title to section 211(o) of the Clean Air
Act shall be construed as superseding, or limiting, any more
environmentally protective requirement under the Clean Air Act, or under
any other provision of State or Federal law or regulation, including any
environmental law or regulation.

SEC. 205. [NOTE: 42 USC 17021. BIOMASS-BASED DIESEL AND BIODIESEL
LABELING.

(a) In General.--Each retail diesel fuel pump shall be labeled in a
manner that informs consumers of the percent of biomass-based diesel or
biodiesel that is contained in the biomass-based diesel blend or
biodiesel blend that is offered for sale, as determined by the Federal
Trade Commission.
(b) Labeling [NOTE: Deadline. Requirements.--Not later than 180
days after the date of enactment of this section, the Federal Trade
Commission shall promulgate biodiesel labeling requirements as follows:
(1) Biomass-based diesel blends or biodiesel blends that
contain less than or equal to 5 percent biomass-based diesel

[[Page 1530]]
121 STAT. 1530

or biodiesel by volume and that meet ASTM D975 diesel
specifications shall not require any additional labels.
(2) Biomass-based diesel blends or biodiesel blends that
contain more than 5 percent biomass-based diesel or biodiesel by
volume but not more than 20 percent by volume shall be labeled
``contains biomass-based diesel or biodiesel in quantities
between 5 percent and 20 percent''.
(3) Biomass-based diesel or biodiesel blends that contain
more than 20 percent biomass based or biodiesel by volume shall
be labeled ``contains more than 20 percent biomass-based diesel
or biodiesel''.

(c) Definitions.--In this section:
(1) ASTM.--The term ``ASTM'' means the American Society of
Testing and Materials.
(2) Biomass-based diesel.--The term ``biomass-based diesel''
means biodiesel as defined in section 312(f) of the Energy
Policy Act of 1992 (42 U.S.C. 13220(f)).
(3) Biodiesel.--The term ``biodiesel'' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter that meet--
(A) the registration requirements for fuels and fuel
additives under this section; and
(B) the requirements of ASTM standard D6751.
(4) Biomass-based diesel and biodiesel blends.--The terms
``biomass-based diesel blend'' and ``biodiesel blend'' means a
blend of ``biomass-based diesel'' or ``biodiesel'' fuel that is
blended with petroleum-based diesel fuel.

SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC
VEHICLES.

(a) Definition of Electric Vehicle.--In this section, the term
``electric vehicle'' means an electric motor vehicle (as defined in
section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for
which the rechargeable storage battery--
(1) receives a charge directly from a source of electric
current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive power of
the vehicle.

(b) Study.--The Administrator of the Environmental Protection Agency
shall conduct a study on the feasibility of issuing credits under the
program established under section 211(o) of the Clean Air Act to
electric vehicles powered by electricity produced from renewable energy
sources.
(c) Report.--Not later than 18 months after the date of enactment of
this Act, the Administrator shall submit to the Committee on Energy and
Natural Resources of the United States Senate and the Committee on
Energy and Commerce of the United States House of Representatives a
report that describes the results of the study, including a description
of--
(1) existing programs and studies on the use of renewable
electricity as a means of powering electric vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine the
feasibility of using renewable electricity to power
electric vehicles as an adjunct to a renewable fuels
mandate;

[[Page 1531]]
121 STAT. 1531

(B) allowing the use, under the pilot program
designed under subparagraph (A), of electricity
generated from nuclear energy as an additional source of
supply;
(C) identifying the source of electricity used to
power electric vehicles; and
(D) equating specific quantities of electricity to
quantities of renewable fuel under section 211(o) of the
Clean Air Act.

SEC. 207. [NOTE: 42 USC 17022. GRANTS FOR PRODUCTION OF ADVANCED
BIOFUELS.

(a) In General.--The Secretary of Energy shall establish a grant
program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this section,
the Secretary--
(1) shall make awards to the proposals for advanced biofuels
with the greatest reduction in lifecycle greenhouse gas
emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2005; and
(2) shall not make an award to a project that does not
achieve at least an 80 percent reduction in such lifecycle
greenhouse gas emissions.

(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for the period of
fiscal years 2008 through 2015.

SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS ON
FUELS AND FUEL ADDITIVES.

Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is
amended as follows:
(1) By striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting ``nonroad vehicle if, in the
judgment of the Administrator, any fuel or fuel additive or'';
and
(2) In subparagraph (A), by striking ``air pollution which''
and inserting ``air pollution or water pollution (including any
degradation in the quality of groundwater) that''.

SEC. 209. ANTI-BACKSLIDING.

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(v) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months after
the date of enactment of this subsection, the
Administrator shall complete a study to determine
whether the renewable fuel volumes required by this
section will adversely impact air quality as a result of
changes in vehicle and engine emissions of air
pollutants regulated under this Act.
``(B) Considerations.--The study shall include
consideration of--
``(i) different blend levels, types of
renewable fuels, and available vehicle
technologies; and
``(ii) appropriate national, regional, and
local air quality control measures.
``(2) Regulations.--Not [NOTE: Deadline. later than 3
years after the date of enactment of this subsection, the
Administrator shall--

[[Page 1532]]
121 STAT. 1532

``(A) promulgate fuel regulations to implement
appropriate measures to mitigate, to the greatest extent
achievable, considering the results of the study under
paragraph (1), any adverse impacts on air quality, as
the result of the renewable volumes required by this
section; or
``(B) make a determination that no such measures are
necessary.''.

SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION RULES.

(a) Transition [NOTE: 42 USC 7545 note. Rules.--(1) For calendar
year 2008, transportation fuel sold or introduced into commerce in the
United States (except in noncontiguous States or territories), that is
produced from facilities that commence construction after the date of
enactment of this Act shall be treated as renewable fuel within the
meaning of section 211(o) of the Clean Air Act only if it achieves at
least a 20 percent reduction in lifecycle greenhouse gas emissions
compared to baseline lifecycle greenhouse gas emissions. For calendar
years 2008 and 2009, any ethanol plant that is fired with natural gas,
biomass, or any combination thereof is deemed to be in compliance with
such 20 percent reduction requirement and with the 20 percent reduction
requirement of section 211(o)(1) of the Clean Air Act. The terms used in
this subsection shall have the same meaning as provided in the amendment
made by this Act to section 211(o) of the Clean Air Act.

(2) [NOTE: Termination date. Until January 1, 2009, the
Administrator of the Environmental Protection Agency shall implement
section 211(o) of the Clean Air Act and the rules promulgated under that
section in accordance with the provisions of that section as in effect
before the enactment of this Act and in accordance with the rules
promulgated before the enactment of this Act, except that for calendar
year 2008, the number ``9.0'' shall be substituted for the number
``5.4'' in the table in section 211(o)(2)(B) and in the corresponding
rules promulgated to carry out those provisions. The Administrator is
authorized to take such other actions as may be necessary to carry out
this paragraph notwithstanding any other provision of law.

(b) Savings Clause.--Section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)) is amended by adding the following new paragraph at the end
thereof:
``(12) Effect on other provisions.--Nothing in this
subsection, or regulations issued pursuant to this subsection,
shall affect or be construed to affect the regulatory status of
carbon dioxide or any other greenhouse gas, or to expand or
limit regulatory authority regarding carbon dioxide or any other
greenhouse gas, for purposes of other provisions (including
section 165) of this Act. The previous sentence shall not affect
implementation and enforcement of this subsection.''.

(c) Effective [NOTE: Regulations. Deadline. 42 USC 7545
note. Date.--The amendments made by this title to section 211(o) of
the Clean Air Act shall take effect January 1, 2009, except that the
Administrator shall promulgate regulations to carry out such amendments
not later than 1 year after the enactment of this Act.

[[Page 1533]]
121 STAT. 1533

Subtitle B--Biofuels Research and Development

SEC. 221. [NOTE: 42 USC 17031. BIODIESEL.

(a) Biodiesel [NOTE: Reports. Study.--Not later than 180 days
after the date of enactment of this Act, the Secretary, in consultation
with the Administrator of the Environmental Protection Agency, shall
submit to Congress a report on any research and development challenges
inherent in increasing the proportion of diesel fuel sold in the United
States that is biodiesel.

(b) Material [NOTE: Public information. for the Establishment of
Standards.--The Director of the National Institute of Standards and
Technology, in consultation with the Secretary, shall make publicly
available the physical property data and characterization of biodiesel
and other biofuels as appropriate.

SEC. 222. [NOTE: Deadline. Reports. BIOGAS.

Not later than 180 days after the date of enactment of this Act, the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall submit to Congress a report on any research and
development challenges inherent in increasing the amount of
transportation fuels sold in the United States that are fuel with biogas
or a blend of biogas and natural gas.

SEC. 223. [NOTE: 42 USC 17032. GRANTS FOR BIOFUEL PRODUCTION RESEARCH
AND DEVELOPMENT IN CERTAIN STATES.

(a) In General.--The Secretary shall provide grants to eligible
entities for research, development, demonstration, and commercial
application of biofuel production technologies in States with low rates
of ethanol production, including low rates of production of cellulosic
biomass ethanol, as determined by the Secretary.
(b) Eligibility.--To be eligible to receive a grant under this
section, an entity shall--
(1)(A) be an institution of higher education (as defined in
section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)),
including tribally controlled colleges or universities, located
in a State described in subsection (a); or
(B) be a consortium including at least 1 such institution of
higher education and industry, State agencies, Indian tribal
agencies, National Laboratories, or local government agencies
located in the State; and
(2) have proven experience and capabilities with relevant
technologies.

(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $25,000,000 for
each of fiscal years 2008 through 2010.

SEC. 224. BIOREFINERY ENERGY EFFICIENCY.

Section 932 of the Energy Policy Act of 2005 (42 U.S.C. 16232) is
amended by adding at the end the following new subsections:
``(g) Biorefinery Energy Efficiency.--The Secretary shall establish
a program of research, development, demonstration, and commercial
application for increasing energy efficiency and reducing energy
consumption in the operation of biorefinery facilities.
``(h) Retrofit Technologies for the Development of Ethanol From
Cellulosic Materials.--The Secretary shall establish

[[Page 1534]]
121 STAT. 1534

a program of research, development, demonstration, and commercial
application on technologies and processes to enable biorefineries that
exclusively use corn grain or corn starch as a feedstock to produce
ethanol to be retrofitted to accept a range of biomass, including
lignocellulosic feedstocks.''.

SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85
FUEL.

(a) In General.--The Secretary, in consultation with the Secretary
of Transportation and the Administrator of the Environmental Protection
Agency, shall conduct a study of whether optimizing flexible fueled
vehicles to operate using E-85 fuel would increase the fuel efficiency
of flexible fueled vehicles.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary shall submit to the Committee on Science and
Technology and the Committee on Energy and Commerce of the House of
Representatives, and to the Committee on Energy and Natural Resources,
the Committee on Environment and Public Works, and the Committee on
Commerce, Science, and Transportation of the Senate, a report that
describes the results of the study under this section, including any
recommendations of the Secretary.

SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH THE
USE OF BIODIESEL.

(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall initiate a study on the
effects of the use of biodiesel on the performance and durability of
engines and engine systems.
(b) Components.--The study under this section shall include--
(1) an assessment of whether the use of biodiesel lessens
the durability and performance of conventional diesel engines
and engine systems; and
(2) an assessment of the effects referred to in subsection
(a) with respect to biodiesel blends at varying concentrations,
including the following percentage concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.

(c) Report.--Not later than 24 months after the date of enactment of
this Act, the Secretary shall submit to the Committee on Science and
Technology and the Committee on Energy and Commerce of the House of
Representatives, and to the Committee on Energy and Natural Resources
and the Committee on Environment and Public Works of the Senate, a
report that describes the results of the study under this section,
including any recommendations of the Secretary.

SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.

(a) In General.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency and the Secretary
of Transportation, shall conduct a study of methods of increasing the
fuel efficiency of vehicles using biogas by optimizing natural gas
vehicle systems that can operate on biogas, including

[[Page 1535]]
121 STAT. 1535

the advancement of vehicle fuel systems and the combination of hybrid-
electric and plug-in hybrid electric drive platforms with natural gas
vehicle systems using biogas.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary shall submit to the Committee on Energy and
Natural Resources, the Committee on Environment and Public Works, and
the Committee on Commerce, Science, and Transportation of the Senate,
and to the Committee on Science and Technology and the Committee on
Energy and Commerce of the House of Representatives, a report that
describes the results of the study, including any recommendations of the
Secretary.

SEC. 228. [NOTE: Deadline. Reports. ALGAL BIOMASS.

(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall submit to the Committee on Science and
Technology of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate, a report on the progress of the
research and development that is being conducted on the use of algae as
a feedstock for the production of biofuels.
(b) Contents.--The report shall identify continuing research and
development challenges and any regulatory or other barriers found by the
Secretary that hinder the use of this resource, as well as
recommendations on how to encourage and further its development as a
viable transportation fuel.

SEC. 229. [NOTE: Establishment. 42 USC 17033. BIOFUELS AND
BIOREFINERY INFORMATION CENTER.

(a) In General.--The Secretary, in cooperation with the Secretary of
Agriculture, shall establish a biofuels and biorefinery information
center to make available to interested parties information on--
(1) renewable fuel feedstocks, including the varieties of
fuel capable of being produced from various feedstocks;
(2) biorefinery processing techniques related to various
renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail
dispensing infrastructure necessary for the transport and use of
renewable fuels;
(4) Federal and State laws and incentives related to
renewable fuel production and use;
(5) renewable fuel research and development advancements;
(6) renewable fuel development and biorefinery processes and
technologies;
(7) renewable fuel resources, including information on
programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.

(b) Administration.--In administering the biofuels and biorefinery
information center, the Secretary shall--
(1) continually update information provided by the center;
(2) make information available relating to processes and
technologies for renewable fuel production;
(3) make information available to interested parties on the
process for establishing a biorefinery; and
(4) make information and assistance provided by the center
available through a toll-free telephone number and website.

[[Page 1536]]
121 STAT. 1536

(c) Coordination and Nonduplication.--To the maximum extent
practicable, the Secretary shall ensure that the activities under this
section are coordinated with, and do not duplicate the efforts of,
centers at other government agencies.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 230. [NOTE: 42 USC 17034. CELLULOSIC ETHANOL AND BIOFUELS
RESEARCH.

(a) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) an 1890 Institution (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly
referred to as ``Historically Black Colleges and
Universities'');
(3) a tribal college or university (as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b))); or
(4) a Hispanic-serving institution (as defined in section
502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a))).

(b) Grants.--The Secretary shall make cellulosic ethanol and
biofuels research and development grants to 10 eligible entities
selected by the Secretary to receive a grant under this section through
a peer-reviewed competitive process.
(c) Collaboration.--An eligible entity that is selected to receive a
grant under subsection (b) shall collaborate with 1 of the Bioenergy
Research Centers of the Office of Science of the Department.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to make grants described in subsection (b)
$50,000,000 for fiscal year 2008, to remain available until expended.

SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF
APPROPRIATION.

Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) is
amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $963,000,000 for fiscal year 2010.''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``$251,000,000'' and inserting
``$377,000,000''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (3)--
(i) by striking ``$274,000,000'' and inserting
``$398,000,000''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:

[[Page 1537]]
121 STAT. 1537

``(4) $419,000,000 for fiscal year 2010, of which
$150,000,000 shall be for section 932(d).''.

SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

(a) In General.--Section 977 of the Energy Policy Act of 2005 (42
U.S.C. 16317) is amended--
(1) in subsection (a)(1), by striking ``and computational
biology'' and inserting ``computational biology, and
environmental science''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``in sustainable
production systems that reduce greenhouse gas
emissions'' after ``hydrogen'';
(B) in paragraph (3), by striking ``and'' at the
end;
(C) by redesignating paragraph (4) as paragraph (5);
and
(D) by inserting after paragraph (3) the following:
``(4) develop cellulosic and other feedstocks that are less
resource and land intensive and that promote sustainable use of
resources, including soil, water, energy, forests, and land, and
ensure protection of air, water, and soil quality; and''.

(b) Tools and Evaluation.--Section 307(d) of the Biomass Research
and Development Act of 2000 (7 U.S.C. 8606(d)) is amended--
(1) in paragraph (3)(E), 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:
``(5) the improvement and development of analytical tools to
facilitate the analysis of life-cycle energy and greenhouse gas
emissions, including emissions related to direct and indirect
land use changes, attributable to all potential biofuel
feedstocks and production processes; and
``(6) the systematic evaluation of the impact of expanded
biofuel production on the environment, including forest lands,
and on the food supply for humans and animals.''.

(c) Small-Scale Production and Use of Biofuels.--Section 307(e) of
the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(e)) is
amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) to facilitate small-scale production, local, and on-
farm use of biofuels, including the development of small-scale
gasification technologies for production of biofuel from
cellulosic feedstocks.''.

SEC. 233. BIOENERGY RESEARCH CENTERS.

Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) is
amended by adding at the end the following:
``(f) Bioenergy Research Centers.--
``(1) Establishment of centers.--In carrying out the program
under subsection (a), the Secretary shall establish at least 7
bioenergy research centers, which may be of varying size.
``(2) Geographic distribution.--The Secretary shall
establish at least 1 bioenergy research center in each Petroleum

[[Page 1538]]
121 STAT. 1538

Administration for Defense District or Subdistrict of a
Petroleum Administration for Defense District.
``(3) Goals.--The goals of the centers established under
this subsection shall be to accelerate basic transformational
research and development of biofuels, including biological
processes.
``(4) Selection and duration.--
``(A) In general.--A center under this subsection
shall be selected on a competitive basis for a period of
5 years.
``(B) Reapplication.--After the end of the period
described in subparagraph (A), a grantee may reapply for
selection on a competitive basis.
``(5) Inclusion.--A center that is in existence on the date
of enactment of this subsection--
``(A) shall be counted towards the requirement for
establishment of at least 7 bioenergy research centers;
and
``(B) may continue to receive support for a period
of 5 years beginning on the date of establishment of the
center.''.

SEC. 234. [NOTE: 42 USC 17035. UNIVERSITY BASED RESEARCH AND
DEVELOPMENT GRANT PROGRAM.

(a) Establishment.--The Secretary shall establish a competitive
grant program, in a geographically diverse manner, for projects
submitted for consideration by institutions of higher education to
conduct research and development of renewable energy technologies. Each
grant made shall not exceed $2,000,000.
(b) Eligibility.--Priority shall be given to institutions of higher
education with--
(1) established programs of research in renewable energy;
(2) locations that are low income or outside of an urbanized
area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect
infestation as a source of woody biomass.

(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $25,000,000 for carrying out this section.
(d) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the meaning
as defined in section 126(c) of the Energy Policy Act of 2005.
(2) Renewable energy.--The term ``renewable energy'' has the
meaning as defined in section 902 of the Energy Policy Act of
2005.
(3) Urbanized area.--The term ``urbanized area'' has the
meaning as defined by the U.S. Bureau of the Census.

Subtitle C--Biofuels Infrastructure

SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO
RENEWABLE FUEL INFRASTRUCTURE.

(a) In General.--Title I of the Petroleum Marketing Practices Act
(15 U.S.C. 2801 et seq.) is amended by adding at the end the following:

[[Page 1539]]
121 STAT. 1539

``SEC. 107. [NOTE: 15 USC 2807. PROHIBITION ON RESTRICTION OF
INSTALLATION OF RENEWABLE FUEL PUMPS.

``(a) Definition.--In this section:
``(1) Renewable fuel.--The term `renewable fuel' means any
fuel--
``(A) at least 85 percent of the volume of which
consists of ethanol; or
``(B) any mixture of biodiesel and diesel or
renewable diesel (as defined in regulations adopted
pursuant to section 211(o) of the Clean Air Act (40 CFR,
part 80)), determined without regard to any use of
kerosene and containing at least 20 percent biodiesel or
renewable diesel.
``(2) Franchise-related document.--The term `franchise-
related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a
franchisor relating to terms or conditions of the sale
of fuel by a franchisee.

``(b) Prohibitions.--
``(1) In general.--No franchise-related document entered
into or renewed on or after the date of enactment of this
section shall contain any provision allowing a franchisor to
restrict the franchisee or any affiliate of the franchisee
from--
``(A) installing on the marketing premises of the
franchisee a renewable fuel pump or tank, except that
the franchisee's franchisor may restrict the
installation of a tank on leased marketing premises of
such franchisor;
``(B) converting an existing tank or pump on the
marketing premises of the franchisee for renewable fuel
use, so long as such tank or pump and the piping
connecting them are either warranted by the manufacturer
or certified by a recognized standards setting
organization to be suitable for use with such renewable
fuel;
``(C) advertising (including through the use of
signage) the sale of any renewable fuel;
``(D) selling renewable fuel in any specified area
on the marketing premises of the franchisee (including
any area in which a name or logo of a franchisor or any
other entity appears);
``(E) purchasing renewable fuel from sources other
than the franchisor if the franchisor does not offer its
own renewable fuel for sale by the franchisee;
``(F) listing renewable fuel availability or prices,
including on service station signs, fuel dispensers, or
light poles; or
``(G) allowing for payment of renewable fuel with a
credit card,
so long as such activities described in subparagraphs (A)
through (G) do not constitute mislabeling, misbranding, willful
adulteration, or other trademark violations by the franchisee.
``(2) Effect of provision.--Nothing in this section shall be
construed to preclude a franchisor from requiring the franchisee
to obtain reasonable indemnification and insurance policies.

``(c) Exception to 3-Grade Requirement.--No franchise-related
document that requires that 3 grades of gasoline be sold

[[Page 1540]]
121 STAT. 1540

by the applicable franchisee shall prevent the franchisee from selling a
renewable fuel in lieu of 1, and only 1, grade of gasoline.''.
(b) Enforcement.--Section 105 of the Petroleum Marketing Practices
Act (15 U.S.C. 2805) is amended by striking ``102 or 103'' each place it
appears and inserting ``102, 103, or 107''.
(c) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum Marketing
Practices Act (15 U.S.C. 2801(13)) is amended by aligning the
margin of subparagraph (C) with subparagraph (B).
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is
amended--
(A) by inserting after the item relating to section
106 the following:

``Sec. 107. Prohibition on restriction of installation of renewable fuel
pumps.'';

and
(B) by striking the item relating to section 202 and
inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure
requirements.''.

SEC. 242. [NOTE: 42 USC 17051. RENEWABLE FUEL DISPENSER REQUIREMENTS.

(a) Market Penetration Reports.--The Secretary, in consultation with
the Secretary of Transportation, shall determine and report to Congress
annually on the market penetration for flexible-fuel vehicles in use
within geographic regions to be established by the Secretary.
(b) Dispenser [NOTE: Reports. Feasibility Study.--Not later than
24 months after the date of enactment of this Act, the Secretary, in
consultation with the Department of Transportation, shall report to the
Congress on the feasibility of requiring motor fuel retailers to install
E-85 compatible dispensers and related systems at retail fuel facilities
in regions where flexible-fuel vehicle market penetration has reached 15
percent of motor vehicles. In conducting such study, the Secretary shall
consider and report on the following factors:
(1) The commercial availability of E-85 fuel and the number
of competing E-85 wholesale suppliers in a given region.
(2) The level of financial assistance provided on an annual
basis by the Federal Government, State governments, and
nonprofit entities for the installation of E-85 compatible
infrastructure.
(3) The number of retailers whose retail locations are
unable to support more than 2 underground storage tank
dispensers.
(4) The expense incurred by retailers in the installation
and sale of E-85 compatible dispensers and related systems and
any potential effects on the price of motor vehicle fuel.

SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.

(a) In General.--The Secretary, in coordination with the Secretary
of Transportation, shall conduct a study of the feasibility of the
construction of pipelines dedicated to the transportation of ethanol.
(b) Factors for Consideration.--In conducting the study under
subsection (a), the Secretary shall take into consideration--

[[Page 1541]]
121 STAT. 1541

(1) the quantity of ethanol production that would make
dedicated pipelines economically viable;
(2) existing or potential barriers to the construction of
pipelines dedicated to the transportation of ethanol, including
technical, siting, financing, and regulatory barriers;
(3) market risk (including throughput risk) and means of
mitigating the risk;
(4) regulatory, financing, and siting options that would
mitigate the risk and help ensure the construction of 1 or more
pipelines dedicated to the transportation of ethanol;
(5) financial incentives that may be necessary for the
construction of pipelines dedicated to the transportation of
ethanol, including the return on equity that sponsors of the
initial dedicated ethanol pipelines will require to invest in
the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, including identification
of remedial and preventive measures to ensure pipeline
integrity; and
(7) such other factors as the Secretary considers to be
appropriate.

(c) Report.--Not later than 15 months after the date of enactment of
this Act, the Secretary shall submit to Congress a report describing the
results of the study conducted under this section.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $1,000,000 for
each of fiscal years 2008 and 2009, to remain available until expended.

SEC. 244. [NOTE: 42 USC 17052. RENEWABLE FUEL INFRASTRUCTURE GRANTS.

(a) Definition of Renewable Fuel Blend.--For purposes of this
section, the term ``renewable fuel blend'' means a gasoline blend that
contains not less than 11 percent, and not more than 85 percent,
renewable fuel or diesel fuel that contains at least 10 percent
renewable fuel.
(b) Infrastructure Development Grants.--
(1) Establishment.--The Secretary shall establish a program
for making grants for providing assistance to retail and
wholesale motor fuel dealers or other entities for the
installation, replacement, or conversion of motor fuel storage
and dispensing infrastructure to be used exclusively to store
and dispense renewable fuel blends.
(2) Selection [NOTE: Deadline. criteria.--Not later than
12 months after the date of enactment of this Act, the Secretary
shall establish criteria for evaluating applications for grants
under this subsection that will maximize the availability and
use of renewable fuel blends, and that will ensure that
renewable fuel blends are available across the country. Such
criteria shall provide for--
(A) consideration of the public demand for each
renewable fuel blend in a particular geographic area
based on State registration records showing the number
of flexible-fuel vehicles;
(B) consideration of the opportunity to create or
expand corridors of renewable fuel blend stations along
interstate or State highways;

[[Page 1542]]
121 STAT. 1542

(C) consideration of the experience of each
applicant with previous, similar projects;
(D) consideration of population, number of flexible-
fuel vehicles, number of retail fuel outlets, and
saturation of flexible-fuel vehicles; and
(E) priority consideration to applications that--
(i) are most likely to maximize displacement
of petroleum consumption, measured as a total
quantity and a percentage;
(ii) are best able to incorporate existing
infrastructure while maximizing, to the extent
practicable, the use of renewable fuel blends; and
(iii) demonstrate the greatest commitment on
the part of the applicant to ensure funding for
the proposed project and the greatest likelihood
that the project will be maintained or expanded
after Federal assistance under this subsection is
completed.
(3) Limitations.--Assistance provided under this subsection
shall not exceed--
(A) 33 percent of the estimated cost of the
installation, replacement, or conversion of motor fuel
storage and dispensing infrastructure; or
(B) $180,000 for a combination of equipment at any
one retail outlet location.
(4) Operation of [NOTE: Regulations. renewable fuel blend
stations.--The Secretary shall establish rules that set forth
requirements for grant recipients under this section that
include providing to the public the renewable fuel blends,
establishing a marketing plan that informs consumers of the
price and availability of the renewable fuel blends, clearly
labeling the dispensers and related equipment, and providing
periodic reports on the status of the renewable fuel blend
sales, the type and amount of the renewable fuel blends
dispensed at each location, and the average price of such fuel.
(5) Notification [NOTE: Deadline. requirements.--Not
later than the date on which each renewable fuel blend station
begins to offer renewable fuel blends to the public, the grant
recipient that used grant funds to construct or upgrade such
station shall notify the Secretary of such
opening. [NOTE: Website. The Secretary shall add each new
renewable fuel blend station to the renewable fuel blend station
locator on its Website when it receives notification under this
subsection.
(6) Double counting.--No person that receives a credit under
section 30C of the Internal Revenue Code of 1986 may receive
assistance under this section.
(7) Reservation of funds.--The Secretary shall reserve funds
appropriated for the renewable fuel blends infrastructure
development grant program for technical and marketing assistance
described in subsection (c).

(c) Retail [NOTE: Contracts. Technical and Marketing
Assistance.--The Secretary shall enter into contracts with entities with
demonstrated experience in assisting retail fueling stations in
installing refueling systems and marketing renewable fuel blends
nationally, for the provision of technical and marketing assistance to
recipients of grants under this section. Such assistance shall include--
(1) technical advice for compliance with applicable Federal
and State environmental requirements;

[[Page 1543]]
121 STAT. 1543

(2) help in identifying supply sources and securing long-
term contracts; and
(3) provision of public outreach, education, and labeling
materials.

(d) Refueling [NOTE: Grants. Infrastructure Corridors.--
(1) In general.--The Secretary shall establish a competitive
grant pilot program (referred to in this subsection as the
``pilot program''), to be administered through the Vehicle
Technology Deployment Program of the Department, to provide not
more than 10 geographically-dispersed project grants to State
governments, Indian tribal governments, local governments,
metropolitan transportation authorities, or partnerships of
those entities to carry out 1 or more projects for the purposes
described in paragraph (2).
(2) Grant purposes.--A grant under this subsection shall be
used for the establishment of refueling infrastructure
corridors, as designated by the Secretary, for renewable fuel
blends, including--
(A) installation of infrastructure and equipment
necessary to ensure adequate distribution of renewable
fuel blends within the corridor;
(B) installation of infrastructure and equipment
necessary to directly support vehicles powered by
renewable fuel blends; and
(C) operation and maintenance of infrastructure and
equipment installed as part of a project funded by the
grant.
(3) Applications.--
(A) Requirements.--
(i) In [NOTE: Deadline. general.--Subject
to clause (ii), not later than 90 days after the
date of enactment of this Act, the Secretary shall
issue requirements for use in applying for grants
under the pilot program.
(ii) Minimum requirements.--At a minimum, the
Secretary shall require that an application for a
grant under this subsection--
(I) be submitted by--
(aa) the head of a State,
tribal, or local government or a
metropolitan transportation
authority, or any combination of
those entities; and
(bb) a registered
participant in the Vehicle
Technology Deployment Program of
the Department; and
(II) include--
(aa) a description of the
project proposed in the
application, including the ways
in which the project meets the
requirements of this subsection;
(bb) an estimate of the
degree of use of the project,
including the estimated size of
fleet of vehicles operated with
renewable fuels blend available
within the geographic region of
the corridor, measured as a
total quantity and a percentage;
(cc) an estimate of the
potential petroleum displaced as
a result of the project
(measured

[[Page 1544]]
121 STAT. 1544

as a total quantity and a
percentage), and a plan to
collect and disseminate
petroleum displacement and other
relevant data relating to the
project to be funded under the
grant, over the expected life of
the project;
(dd) a description of the
means by which the project will
be sustainable without Federal
assistance after the completion
of the term of the grant;
(ee) a complete description
of the costs of the project,
including acquisition,
construction, operation, and
maintenance costs over the
expected life of the project;
and
(ff) a description of which
costs of the project will be
supported by Federal assistance
under this subsection.
(B) Partners.--An applicant under subparagraph (A)
may carry out a project under the pilot program in
partnership with public and private entities.
(4) Selection criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(A) consider the experience of each applicant with
previous, similar projects; and
(B) give priority consideration to applications
that--
(i) are most likely to maximize displacement
of petroleum consumption, measured as a total
quantity and a percentage;
(ii) are best able to incorporate existing
infrastructure while maximizing, to the extent
practicable, the use of advanced biofuels;
(iii) demonstrate the greatest commitment on
the part of the applicant to ensure funding for
the proposed project and the greatest likelihood
that the project will be maintained or expanded
after Federal assistance under this subsection is
completed;
(iv) represent a partnership of public and
private entities; and
(v) exceed the minimum requirements of
paragraph (3)(A)(ii).
(5) Pilot project requirements.--
(A) Maximum amount.--The Secretary shall provide not
more than $20,000,000 in Federal assistance under the
pilot program to any applicant.
(B) Cost sharing.--The non-Federal share of the cost
of any activity relating to renewable fuel blend
infrastructure development carried out using funds from
a grant under this subsection shall be not less than 20
percent.
(C) Maximum period of grants.--The Secretary shall
not provide funds to any applicant under the pilot
program for more than 2 years.
(D) Deployment and distribution.--The Secretary
shall seek, to the maximum extent practicable, to ensure
a broad geographic distribution of project sites funded
by grants under this subsection.
(E) Transfer of information and knowledge.--The
Secretary shall establish mechanisms to ensure that the
information and knowledge gained by participants in the

[[Page 1545]]
121 STAT. 1545

pilot program are transferred among the pilot program
participants and to other interested parties, including
other applicants that submitted applications.
(6) [NOTE: Deadlines. Federal
Register, publication. Publication. Schedule.--
(A) Initial grants.--
(i) In general.--Not later than 90 days after
the date of enactment of this Act, the Secretary
shall publish in the Federal Register, Commerce
Business Daily, and such other publications as the
Secretary considers to be appropriate, a notice
and request for applications to carry out projects
under the pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary by
not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal up to 5 applications for projects to be
awarded a grant under the pilot program.
(B) Additional grants.--
(i) In general.--Not later than 2 years after
the date of enactment of this Act, the Secretary
shall publish in the Federal Register, Commerce
Business Daily, and such other publications as the
Secretary considers to be appropriate, a notice
and request for additional applications to carry
out projects under the pilot program that
incorporate the information and knowledge obtained
through the implementation of the first round of
projects authorized under the pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary by
not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal such additional applications for projects
to be awarded a grant under the pilot program as
the Secretary determines to be appropriate.
(7) Reports to congress.--
(A) Initial report.--Not later than 60 days after
the date on which grants are awarded under this
subsection, the Secretary shall submit to Congress a
report containing--
(i) an identification of the grant recipients
and a description of the projects to be funded
under the pilot program;
(ii) an identification of other applicants
that submitted applications for the pilot program
but to which funding was not provided; and
(iii) a description of the mechanisms used by
the Secretary to ensure that the information and
knowledge gained by participants in the pilot
program are transferred among the pilot program
participants and

[[Page 1546]]
121 STAT. 1546

to other interested parties, including other
applicants that submitted applications.
(B) Evaluation.--Not later than 2 years after the
date of enactment of this Act, and annually thereafter
until the termination of the pilot program, the
Secretary shall submit to Congress a report containing
an evaluation of the effectiveness of the pilot program,
including an assessment of the petroleum displacement
and benefits to the environment derived from the
projects included in the pilot program.

(e) Restriction.--No grant shall be provided under subsection (b) or
(c) to a large, vertically integrated oil company.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $200,000,000
for each of the fiscal years 2008 through 2014.

SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-
PRODUCED RENEWABLE FUEL BY RAILROADS AND OTHER MODES OF
TRANSPORTATION.

(a) Study.--
(1) In general.--The Secretary, in coordination with the
Secretary of Transportation, shall jointly conduct a study of
the adequacy of transportation of domestically-produced
renewable fuels by railroad and other modes of transportation as
designated by the Secretaries.
(2) Components.--In conducting the study under paragraph
(1), the Secretaries shall--
(A) consider the adequacy of existing railroad and
other transportation and distribution infrastructure,
equipment, service and capacity to move the necessary
quantities of domestically-produced renewable fuel
within the timeframes;
(B)(i) consider the projected costs of moving the
domestically-produced renewable fuel by railroad and
other modes of transportation; and
(ii) consider the impact of the projected costs on
the marketability of the domestically-produced renewable
fuel;
(C) identify current and potential impediments to
the reliable transportation and distribution of adequate
supplies of domestically-produced renewable fuel at
reasonable prices, including practices currently
utilized by domestic producers, shippers, and receivers
of renewable fuels;
(D) consider whether adequate competition exists
within and between modes of transportation for the
transportation and distribution of domestically-produced
renewable fuel and, whether inadequate competition leads
to an unfair price for the transportation and
distribution of domestically-produced renewable fuel or
unacceptable service for transportation of domestically-
produced renewable fuel;
(E) consider whether Federal agencies have adequate
legal authority to address instances of inadequate
competition when inadequate competition is found to
prevent domestic producers for renewable fuels from
obtaining a fair and reasonable transportation price or
acceptable service for the transportation and
distribution of domestically-produced renewable fuels;

[[Page 1547]]
121 STAT. 1547

(F) consider whether Federal agencies have adequate
legal authority to address railroad and transportation
service problems that may be resulting in inadequate
supplies of domestically-produced renewable fuel in any
area of the United States;
(G) consider what transportation infrastructure
capital expenditures may be necessary to ensure the
reliable transportation of adequate supplies of
domestically-produced renewable fuel at reasonable
prices within the United States and which public and
private entities should be responsible for making such
expenditures; and
(H) provide recommendations on ways to facilitate
the reliable transportation of adequate supplies of
domestically-produced renewable fuel at reasonable
prices.

(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretaries shall jointly submit to the Committee on
Commerce, Science and Transportation, the Committee on Energy and
Natural Resources, and the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and Infrastructure and
the Committee on Energy and Commerce of the House of Representatives a
report that describes the results of the study conducted under
subsection (a).

SEC. 246. [NOTE: 42 USC 17053. FEDERAL FLEET FUELING CENTERS.

(a) In [NOTE: Deadline. General.--Not later than January 1, 2010,
the head of each Federal agency shall install at least 1 renewable fuel
pump at each Federal fleet fueling center in the United States under the
jurisdiction of the head of the Federal agency.

(b) Report.--Not later than October 31 of the first calendar year
beginning after the date of the enactment of this Act, and each October
31 thereafter, the President shall submit to Congress a report that
describes the progress toward complying with subsection (a), including
identifying--
(1) the number of Federal fleet fueling centers that contain
at least 1 renewable fuel pump; and
(2) the number of Federal fleet fueling centers that do not
contain any renewable fuel pumps.

(c) Department of Defense Facility.--This section shall not apply to
a Department of Defense fueling center with a fuel turnover rate of less
than 100,000 gallons of fuel per year.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
redesignating subsection (s) as subsection (t), redesignating subsection
(r) (relating to conversion assistance for cellulosic biomass, waste-
derived ethanol, approved renewable fuels) as subsection (s) and by
adding the following new subsection at the end thereof:
``(u) Standard [NOTE: Deadline. Regulations. Specifications for
Biodiesel.--(1) Unless the American Society for Testing and Materials
has adopted a standard for diesel fuel containing 20 percent biodiesel
(commonly known as `B20') within 1 year after the date of enactment of
this subsection, the Administrator shall initiate a rulemaking to
establish a uniform per gallon fuel standard for such fuel and designate
an identification number so that vehicle manufacturers are able to
design engines to use fuel meeting such standard.

[[Page 1548]]
121 STAT. 1548

``(2) Unless the American Society for Testing and Materials has
adopted a standard for diesel fuel containing 5 percent biodiesel
(commonly known as `B5') within 1 year after the date of enactment of
this subsection, the Administrator shall initiate a rulemaking to
establish a uniform per gallon fuel standard for such fuel and designate
an identification so that vehicle manufacturers are able to design
engines to use fuel meeting such standard.
``(3) Whenever the Administrator is required to initiate a
rulemaking under paragraph (1) or (2), the Administrator shall
promulgate a final rule within 18 months after the date of the enactment
of this subsection.
``(4) Not later than 180 days after the enactment of this
subsection, the Administrator shall establish an annual inspection and
enforcement program to ensure that diesel fuel containing biodiesel sold
or distributed in interstate commerce meets the standards established
under regulations under this section, including testing and
certification for compliance with applicable standards of the American
Society for Testing and Materials. [NOTE: Appropriation
authorization. There are authorized to be appropriated to carry out
the inspection and enforcement program under this paragraph $3,000,000
for each of fiscal years 2008 through 2010.

``(5) For purposes of this subsection, the term `biodiesel' has the
meaning provided by section 312(f) of Energy Policy Act of 1992 (42
U.S.C. 13220(f)).''.

SEC. 248. [NOTE: 42 USC 17054. BIOFUELS DISTRIBUTION AND ADVANCED
BIOFUELS INFRASTRUCTURE.

(a) In General.--The Secretary, in coordination with the Secretary
of Transportation and in consultation with the Administrator of the
Environmental Protection Agency, shall carry out a program of research,
development, and demonstration relating to existing transportation fuel
distribution infrastructure and new alternative distribution
infrastructure.
(b) Focus.--The program described in subsection (a) shall focus on
the physical and chemical properties of biofuels and efforts to prevent
or mitigate against adverse impacts of those properties in the areas
of--
(1) corrosion of metal, plastic, rubber, cork, fiberglass,
glues, or any other material used in pipes and storage tanks;
(2) dissolving of storage tank sediments;
(3) clogging of filters;
(4) contamination from water or other adulterants or
pollutants;
(5) poor flow properties related to low temperatures;
(6) oxidative and thermal instability in long-term storage
and uses;
(7) microbial contamination;
(8) problems associated with electrical conductivity; and
(9) such other areas as the Secretary considers appropriate.

Subtitle D--Environmental Safeguards

SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.

Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is
amended to read as follows:

[[Page 1549]]
121 STAT. 1549

``(4) The Administrator, upon application of any manufacturer of any
fuel or fuel additive, may waive the prohibitions established under
paragraph (1) or (3) of this subsection or the limitation specified in
paragraph (2) of this subsection, if he determines that the applicant
has established that such fuel or fuel additive or a specified
concentration thereof, and the emission products of such fuel or fuel
additive or specified concentration thereof, will not cause or
contribute to a failure of any emission control device or system (over
the useful life of the motor vehicle, motor vehicle engine, nonroad
engine or nonroad vehicle in which such device or system is used) to
achieve compliance by the vehicle or engine with the emission standards
with respect to which it has been certified pursuant to sections 206 and
213(a). The [NOTE: Notice. Deadline. Administrator shall take final
action to grant or deny an application submitted under this paragraph,
after public notice and comment, within 270 days of the receipt of such
an application.''.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING

Subtitle A--Appliance Energy Efficiency

SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.

(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) is amended--
(1) in paragraph (36)--
(A) by striking ``(36) The'' and inserting the
following:
``(36) External power supply.--
``(A) In general.--The''; and
(B) by adding at the end the following:
``(B) Active mode.--The term `active mode' means the
mode of operation when an external power supply is
connected to the main electricity supply and the output
is connected to a load.
``(C) Class a external power supply.--
``(i) In general.--The term `class A external
power supply' means a device that--
``(I) is designed to convert line
voltage AC input into lower voltage AC
or DC output;
``(II) is able to convert to only 1
AC or DC output voltage at a time;
``(III) is sold with, or intended to
be used with, a separate end-use product
that constitutes the primary load;
``(IV) is contained in a separate
physical enclosure from the end-use
product;
``(V) is connected to the end-use
product via a removable or hard-wired
male/female electrical connection,
cable, cord, or other wiring; and
``(VI) has nameplate output power
that is less than or equal to 250 watts.
``(ii) Exclusions.--The term `class A external
power supply' does not include any device that--

[[Page 1550]]
121 STAT. 1550

``(I) requires Federal Food and Drug
Administration listing and approval as a
medical device in accordance with
section 513 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 360c); or
``(II) powers the charger of a
detachable battery pack or charges the
battery of a product that is fully or
primarily motor operated.
``(D) No-load mode.--The term `no-load mode' means
the mode of operation when an external power supply is
connected to the main electricity supply and the output
is not connected to a load.''; and
(2) by adding at the end the following:
``(52) Detachable battery.--The term `detachable battery'
means a battery that is--
``(A) contained in a separate enclosure from the
product; and
``(B) intended to be removed or disconnected from
the product for recharging.''.

(b) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) is amended by adding at the end the
following:
``(17) Class a external power supplies.--Test procedures for
class A external power supplies shall be based on the `Test
Method for Calculating the Energy Efficiency of Single-Voltage
External AC-DC and AC-AC Power Supplies' published by the
Environmental Protection Agency on August 11, 2004, except that
the test voltage specified in section 4(d) of that test method
shall be only 115 volts, 60 Hz.''.

(c) Efficiency Standards for Class A External Power Supplies.--
Section 325(u) of the Energy Policy and Conservation Act (42 U.S.C.
6295(u)) is amended by adding at the end the following:
``(6) Efficiency standards for class a external power
supplies.--
``(A) In general.--Subject to subparagraphs (B)
through (D), a class A external power supply
manufactured on or after the later of July 1, 2008, or
the date of enactment of this paragraph shall meet the
following standards:


------------------------------------------------------------------------
``Active Mode
-------------------------------------------------------------------------
Required Efficiency (decimal
``Nameplate Output               equivalent of a percentage)
------------------------------------------------------------------------
Less than 1 watt                      0.5 times the Nameplate Output
------------------------------------------------------------------------
From 1 watt to not more than 51       The sum of 0.09 times the Natural
watts                                 Logarithm of the Nameplate Output
and 0.5
------------------------------------------------------------------------
Greater than 51 watts                 0.85
------------------------------------------------------------------------
``No-Load Mode
``Nameplate Output                    Maximum Consumption
------------------------------------------------------------------------
Not more than 250 watts               0.5 watts
------------------------------------------------------------------------



[[Page 1551]]
121 STAT. 1551

``(B) Noncovered supplies.--A class A external power
supply shall not be subject to subparagraph (A) if the
class A external power supply is--
``(i) manufactured during the period beginning
on July 1, 2008, and ending on June 30, 2015; and
``(ii) made available by the manufacturer as a
service part or a spare part for an end-use
product--
``(I) that constitutes the primary
load; and
``(II) was manufactured before July
1, 2008.
``(C) Marking.--Any class A external power supply
manufactured on or after the later of July 1, 2008 or
the date of enactment of this paragraph shall be clearly
and permanently marked in accordance with the External
Power Supply International Efficiency Marking Protocol,
as referenced in the `Energy Star Program Requirements
for Single Voltage External AC-DC and AC-AC Power
Supplies, version 1.1' published by the Environmental
Protection Agency.
``(D) Amendment of standards.--
``(i) Final rule by july 1, 2011.--
``(I)
In [NOTE: Publication. general.--Not
later than July 1, 2011, the Secretary
shall publish a final rule to determine
whether the standards established under
subparagraph (A) should be amended.

``(II) [NOTE: Applicability. Administr
ation.--The final rule shall--
``(aa) contain any amended
standards; and
``(bb) apply to products
manufactured on or after July 1,
2013.
``(ii) Final rule by july 1, 2015.--
``(I)
In [NOTE: Publication. general.--Not
later than July 1, 2015 the Secretary
shall publish a final rule to determine
whether the standards then in effect
should be amended.

``(II) [NOTE: Applicability. Administr
ation.--The final rule shall--
``(aa) contain any amended
standards; and
``(bb) apply to products
manufactured on or after July 1,
2017.
``(7) End-use products.--An energy conservation standard for
external power supplies shall not constitute an energy
conservation standard for the separate end-use product to which
the external power supplies is connected.''.

SEC. 302. [NOTE: Deadline. Federal Register, publication. UPDATING
APPLIANCE TEST PROCEDURES.

(a) Consumer Appliances.--Section 323(b)(1) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)(1)) is amended by striking ``(1)''
and all that follows through the end of the paragraph and inserting the
following:
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall review test procedures for all covered
products and--
``(i) amend test procedures with respect to
any covered product, if the Secretary determines
that amended test procedures would more accurately
or fully comply with the requirements of paragraph
(3); or

[[Page 1552]]
121 STAT. 1552

``(ii) publish notice in the Federal Register
of any determination not to amend a test
procedure.''.

(b) Industrial Equipment.--Section 343(a) of the Energy Policy and
Conservation [NOTE: 42 USC 6314. Act (42 U.S.C. 6313(a)) is amended
by striking ``(a)'' and all that follows through the end of paragraph
(1) and inserting the following:

``(a) Prescription by Secretary; Requirements.--
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall conduct an evaluation of each class of
covered equipment and--
``(i) if the Secretary determines that amended
test procedures would more accurately or fully
comply with the requirements of paragraphs (2) and
(3), shall prescribe test procedures for the class
in accordance with this section; or
``(ii) shall publish notice in the Federal
Register of any determination not to amend a test
procedure.''.

SEC. 303. RESIDENTIAL BOILERS.

Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C.
6295(f)) is amended--
(1) in the subsection heading, by inserting ``and Boilers''
after ``Furnaces'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs (B) and
(C), boilers manufactured on or after September 1, 2012,
shall meet the following requirements:


------------------------------------------------------------------------
Minimum Annual
Boiler Type              Fuel Utilization        Design
Efficiency        Requirements
------------------------------------------------------------------------
Gas Hot Water.....................  82%                No Constant
Burning Pilot,
Automatic Means
for Adjusting
Water
Temperature
------------------------------------------------------------------------
Gas Steam........................  80%                No Constant
Burning Pilot
------------------------------------------------------------------------
Oil Hot Water.....................  84%                Automatic Means
for Adjusting
Temperature
------------------------------------------------------------------------
Oil Steam........................  82%                None
------------------------------------------------------------------------
Electric Hot Water................  None               Automatic Means
for Adjusting
Temperature
------------------------------------------------------------------------
Electric Steam....................  None               None
------------------------------------------------------------------------


``(B) Automatic means for adjusting water
temperature.--
``(i) In general.--The manufacturer shall
equip each gas, oil, and electric hot water boiler
(other than a boiler equipped with a tankless
domestic water heating coil) with automatic means
for adjusting the temperature of the water
supplied by the boiler to ensure that an
incremental change in inferred heat

[[Page 1553]]
121 STAT. 1553

load produces a corresponding incremental change
in the temperature of water supplied.
``(ii) Single input rate.--For a boiler that
fires at 1 input rate, the requirements of this
subparagraph may be satisfied by providing an
automatic means that allows the burner or heating
element to fire only when the means has determined
that the inferred heat load cannot be met by the
residual heat of the water in the system.
``(iii) No inferred heat load.--When there is
no inferred heat load with respect to a hot water
boiler, the automatic means described in clauses
(i) and (ii) shall limit the temperature of the
water in the boiler to not more than 140 degrees
Fahrenheit.
``(iv) Operation.--A boiler described in
clause (i) or (ii) shall be operable only when the
automatic means described in clauses (i), (ii),
and (iii) is installed.
``(C) Exception.--A boiler that is manufactured to
operate without any need for electricity or any electric
connection, electric gauges, electric pumps, electric
wires, or electric devices shall not be required to meet
the requirements of this paragraph.''.

SEC. 304. FURNACE FAN STANDARD PROCESS.

Paragraph (4)(D) of section 325(f) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(f)) (as redesignated by section 303(4))
is amended by striking ``the Secretary may'' and inserting ``not later
than December 31, 2013, the Secretary shall''.

SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING STATE
AUTHORITY.

(a) Consumer Appliances.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by striking subsection (m)
and inserting the following:
``(m) Amendment of Standards.--
``(1) In [NOTE: Deadline. Publication. Notice. general.--
Not later than 6 years after issuance of any final rule
establishing or amending a standard, as required for a product
under this part, the Secretary shall publish--
``(A) a notice of the determination of the Secretary
that standards for the product do not need to be
amended, based on the criteria established under
subsection (n)(2); or
``(B) a notice of proposed rulemaking including new
proposed standards based on the criteria established
under subsection (o) and the procedures established
under subsection (p).
``(2) Notice.--If [NOTE: Public information. the
Secretary publishes a notice under paragraph (1), the Secretary
shall--
``(A) publish a notice stating that the analysis of
the Department is publicly available; and
``(B) provide an opportunity for written comment.
``(3) Amendment [NOTE: Deadline. Publication. of
standard; new determination.--
``(A) Amendment of standard.--Not later than 2 years
after a notice is issued under paragraph (1)(B), the
Secretary shall publish a final rule amending the
standard for the product.

[[Page 1554]]
121 STAT. 1554

``(B) New determination.--Not later than 3 years
after a determination under paragraph (1)(A), the
Secretary shall make a new determination and publication
under subparagraph (A) or (B) of paragraph (1).
``(4) Application to products.--
``(A) In general.--Except as provided in
subparagraph (B), an amendment prescribed under this
subsection shall apply to--
``(i) with respect to refrigerators,
refrigerator-freezers, freezers, room air
conditioners, dishwashers, clothes washers,
clothes dryers, fluorescent lamp ballasts, and
kitchen ranges and ovens, such a product that is
manufactured after the date that is 3 years after
publication of the final rule establishing an
applicable standard; and
``(ii) with respect to central air
conditioners, heat pumps, water heaters, pool
heaters, direct heating equipment, and furnaces,
such a product that is manufactured after the date
that is 5 years after publication of the final
rule establishing an applicable standard.
``(B) Other new standards.--A manufacturer shall not
be required to apply new standards to a product with
respect to which other new standards have been required
during the prior 6-year period.
``(5) Reports.--The Secretary shall promptly submit to the
Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the
Senate--
``(A) a progress report every 180 days on compliance
with this section, including a specific plan to remedy
any failures to comply with deadlines for action
established under this section; and
``(B) all required reports to the Court or to any
party to the Consent Decree in State of New York v
Bodman, Consolidated Civil Actions No. 05 Civ. 7807 and
No. 05 Civ. 7808.''.

(b) Industrial Equipment.--Section 342(a)(6) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by striking ``(6)(A)(i)'' and all that follows through
the end of subparagraph (B) and inserting the following:
``(6) Amended [NOTE: Deadlines. energy efficiency
standards.--
``(A) In general.--
``(i) Analysis [NOTE: Federal
Register, publication. of potential energy
savings.--If ASHRAE/IES Standard 90.1 is amended
with respect to any small commercial package air
conditioning and heating equipment, large
commercial package air conditioning and heating
equipment, very large commercial package air
conditioning and heating equipment, packaged
terminal air conditioners, packaged terminal heat
pumps, warm-air furnaces, packaged boilers,
storage water heaters, instantaneous water
heaters, or unfired hot water storage tanks, not
later than 180 days after the amendment of the
standard, the Secretary shall publish in the
Federal Register for public comment an analysis of
the energy

[[Page 1555]]
121 STAT. 1555

savings potential of amended energy efficiency
standards.
``(ii) Amended uniform national standard for
products.--
``(I) In general.--Except as
provided in subclause (II), not later
than 18 months after the date of
publication of the amendment to the
ASHRAE/IES Standard 90.1 for a product
described in clause (i), the Secretary
shall establish an amended uniform
national standard for the product at the
minimum level specified in the amended
ASHRAE/IES Standard 90.1.
``(II) More [NOTE: Federal
Register, publication. stringent
standard.--Subclause (I) shall not apply
if the Secretary determines, by rule
published in the Federal Register, and
supported by clear and convincing
evidence, that adoption of a uniform
national standard more stringent than
the amended ASHRAE/IES Standard 90.1 for
the product would result in significant
additional conservation of energy and is
technologically feasible and
economically justified.
``(B) Rule.--If the Secretary makes a determination
described in clause (ii)(II) for a product described in
clause (i), not later than 30 months after the date of
publication of the amendment to the ASHRAE/IES Standard
90.1 for the product, the Secretary shall issue the rule
establishing the amended standard.
``(C) Amendment [NOTE: Publication. of
standard.--
``(i) In [NOTE: Notice. general.--Not later
than 6 years after issuance of any final rule
establishing or amending a standard, as required
for a product under this part, the Secretary shall
publish--
``(I) a notice of the determination
of the Secretary that standards for the
product do not need to be amended, based
on the criteria established under
subparagraph (A); or
``(II) a notice of proposed
rulemaking including new proposed
standards based on the criteria and
procedures established under
subparagraph (B).
``(ii) Notice.--If the [NOTE: Public
information. Secretary publishes a notice under
clause (i), the Secretary shall--
``(I) publish a notice stating that
the analysis of the Department is
publicly available; and
``(II) provide an opportunity for
written comment.
``(iii) Amendment of standard; new
determination.--
``(I) Amendment of standard.--Not
later than 2 years after a notice is
issued under clause (i)(II), the
Secretary shall publish a final rule
amending the standard for the product.
``(II) New determination.--Not later
than 3 years after a determination under
clause (i)(I), the Secretary shall make
a new determination and publication
under subclause (I) or (II) of clause
(i).

[[Page 1556]]
121 STAT. 1556

``(iv) Application to products.--An amendment
prescribed under this subsection shall apply to
products manufactured after a date that is the
later of--
``(I) the date that is 3 years after
publication of the final rule
establishing a new standard; or
``(II) the date that is 6 years
after the effective date of the current
standard for a covered product.
``(v) Reports.--The Secretary shall promptly
submit to the Committee on Energy and Commerce of
the House of Representatives and the Committee on
Energy and Natural Resources of the Senate a
progress report every 180 days on compliance with
this subparagraph, including a specific plan to
remedy any failures to comply with deadlines for
action established under this subparagraph.''.

SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, AND
HEAT PUMPS.

(a) In General.--Section 325(o) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at the end the
following:
``(6) Regional standards for furnaces, central air
conditioners, and heat pumps.--
``(A) In general.--In any rulemaking to establish a
new or amended standard, the Secretary may consider the
establishment of separate standards by geographic region
for furnaces (except boilers), central air conditioners,
and heat pumps.
``(B) National and regional standards.--
``(i) National standard.--If the Secretary
establishes a regional standard for a product, the
Secretary shall establish a base national standard
for the product.
``(ii) Regional standards.--If the Secretary
establishes a regional standard for a product, the
Secretary may establish more restrictive standards
for the product by geographic region as follows:
``(I) For furnaces, the Secretary
may establish 1 additional standard that
is applicable in a geographic region
defined by the Secretary.
``(II) For any cooling product, the
Secretary may establish 1 or 2
additional standards that are applicable
in 1 or 2 geographic regions as may be
defined by the Secretary.
``(C) Boundaries of geographic regions.--
``(i) In general.--Subject to clause (ii), the
boundaries of additional geographic regions
established by the Secretary under this paragraph
shall include only contiguous States.
``(ii) Alaska and hawaii.--The States of
Alaska and Hawaii may be included under this
paragraph in a geographic region that the States
are not contiguous to.
``(iii) Individual states.--Individual States
shall be placed only into a single region under
this paragraph.

[[Page 1557]]
121 STAT. 1557

``(D) Prerequisites.--In establishing additional
regional standards under this paragraph, the Secretary
shall--
``(i) establish additional regional standards
only if the Secretary determines that--
``(I) the establishment of
additional regional standards will
produce significant energy savings in
comparison to establishing only a single
national standard; and
``(II) the additional regional
standards are economically justified
under this paragraph; and
``(ii) consider the impact of the additional
regional standards on consumers, manufacturers,
and other market participants, including product
distributors, dealers, contractors, and
installers.
``(E) Application; effective date.--
``(i) Base national standard.--Any base
national standard established for a product under
this paragraph shall--
``(I) be the minimum standard for
the product; and
``(II) apply to all products
manufactured or imported into the United
States on and after the effective date
for the standard.
``(ii) Regional standards.--Any additional and
more restrictive regional standard established for
a product under this paragraph shall apply to any
such product installed on or after the effective
date of the standard in States in which the
Secretary has designated the standard to apply.
``(F) Continuation of regional standards.--
``(i) In general.--In any subsequent
rulemaking for any product for which a regional
standard has been previously established, the
Secretary shall determine whether to continue the
establishment of separate regional standards for
the product.
``(ii) Regional standard no longer
appropriate.--Except as provided in clause (iii),
if the Secretary determines that regional
standards are no longer appropriate for a product,
beginning on the effective date of the amended
standard for the product--
``(I) there shall be 1 base national
standard for the product with Federal
enforcement; and
``(II) State authority for enforcing
a regional standard for the product
shall terminate.
``(iii) Regional standard appropriate but
standard or region changed.--
``(I) State no longer contained in
region.--Subject to subclause (III), if
a State is no longer contained in a
region in which a regional standard that
is more stringent than the base national
standard applies, the authority of the
State to enforce the regional standard
shall terminate.
``(II) Standard or region revised so
that existing regional standard equals
base national standard.--If the
Secretary revises a

[[Page 1558]]
121 STAT. 1558

base national standard for a product or
the geographic definition of a region so
that an existing regional standard for a
State is equal to the revised base
national standard--
``(aa) the authority of the
State to enforce the regional
standard shall terminate on the
effective date of the revised
base national standard; and
``(bb) the State shall be
subject to the revised base
national standard.
``(III) Standard or region revised
so that existing regional standard
equals base national standard.--If the
Secretary revises a base national
standard for a product or the geographic
definition of a region so that the
standard for a State is lower than the
previously approved regional standard,
the State may continue to enforce the
previously approved standard level.
``(iv) Waiver of federal preemption.--Nothing
in this paragraph diminishes the authority of a
State to enforce a State regulation for which a
waiver of Federal preemption has been granted
under section 327(d).
``(G) Enforcement.--
``(i) Base national standard.--
``(I) In general.--The Secretary
shall enforce any base national
standard.
``(II) Trade association
certification programs.--In enforcing
the base national standard, the
Secretary shall use, to the maximum
extent practicable, national standard
nationally recognized certification
programs of trade associations.
``(ii) Regional standards.--
``(I)
Enforcement [NOTE: Deadline. plan.--
Not later than 90 days after the date of
the issuance of a final rule that
establishes a regional standard, the
Secretary shall initiate a rulemaking to
develop and implement an effective
enforcement plan for regional standards
for the products that are covered by the
final rule.
``(II) Responsible entities.--Any
rules regarding enforcement of a
regional standard shall clearly specify
which entities are legally responsible
for compliance with the standards and
for making any required information or
labeling disclosures.
``(III)
Final [NOTE: Deadline. rule.--Not
later than 15 months after the date of
the issuance of a final rule that
establishes a regional standard for a
product, the Secretary shall promulgate
a final rule covering enforcement of
regional standards for the product.
``(IV) Incorporation by states and
localities.--A State or locality may
incorporate any Federal regional
standard into State or local building
codes or State appliance standards.

[[Page 1559]]
121 STAT. 1559

``(V) State enforcement.--A State
agency may seek enforcement of a Federal
regional standard in a Federal court of
competent jurisdiction.
``(H) Information disclosure.--
``(i) In [NOTE: Deadline. general.--Not
later than 90 days after the date of the
publication of a final rule that establishes a
regional standard for a product, the Federal Trade
Commission shall undertake a rulemaking to
determine the appropriate 1 or more methods for
disclosing information so that consumers,
distributors, contractors, and installers can
easily determine whether a specific piece of
equipment that is installed in a specific building
is in conformance with the regional standard that
applies to the building.
``(ii) Methods.--A method of disclosing
information under clause (i) may include--
``(I) modifications to the Energy
Guide label; or
``(II) other methods that make it
easy for consumers and installers to use
and understand at the point of
installation.
``(iii) Completion [NOTE: Deadline. of
rulemaking.--The rulemaking shall be completed not
later 15 months after the date of the publication
of a final rule that establishes a regional
standard for a product.''.

(b) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' after the semicolon
at the end;
(2) in paragraph (5), by striking ``part.'' and inserting
``part, except to the extent that the new covered product is
covered by a regional standard that is more stringent than the
base national standard; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer or private labeler to knowingly
sell a product to a distributor, contractor, or dealer with
knowledge that the entity routinely violates any regional
standard applicable to the product.''.

(c) Consideration of Prices and Operating Patterns.--Section
342(a)(6)(B) of the Energy Policy and Conservation Act (42 U.S.C.
6313(a)(6)(B)) is amended by adding at the end the following:
``(iii) Consideration of prices and operating
patterns.--If the Secretary is considering revised
standards for air-cooled 3-phase central air
conditioners and central air conditioning heat
pumps with less 65,000 Btu per hour (cooling
capacity), the Secretary shall use commercial
energy prices and operating patterns in all
analyses conducted by the Secretary.''.

SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.

Section 325(p) of the Energy Policy and [NOTE: 42 USC
6295. Conservation Act (42 U.S.C. 6925(p)) is amended--
(1) by striking paragraph (1); and

[[Page 1560]]
121 STAT. 1560

(2) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.

SEC. 308. EXPEDITED RULEMAKINGS.

(a) Procedure for Prescribing New or Amended Standards.--Section
325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) (as
amended by section 307) is amended by adding at the end the following:
``(4) Direct final rules.--
``(A) In [NOTE: Publication. general.--On receipt
of a statement that is submitted jointly by interested
persons that are fairly representative of relevant
points of view (including representatives of
manufacturers of covered products, States, and
efficiency advocates), as determined by the Secretary,
and contains recommendations with respect to an energy
or water conservation standard--
``(i) if the Secretary determines that the
recommended standard contained in the statement is
in accordance with subsection (o) or section
342(a)(6)(B), as applicable, the Secretary may
issue a final rule that establishes an energy or
water conservation standard and is published
simultaneously with a notice of proposed
rulemaking that proposes a new or amended energy
or water conservation standard that is identical
to the standard established in the final rule to
establish the recommended standard (referred to in
this paragraph as a `direct final rule'); or
``(ii) if the Secretary determines that a
direct final rule cannot be issued based on the
statement, the Secretary shall publish a notice of
the determination, together with an explanation of
the reasons for the determination.
``(B) Public comment.--The Secretary shall solicit
public comment for a period of at least 110 days with
respect to each direct final rule issued by the
Secretary under subparagraph (A)(i).
``(C) Withdrawal of direct final rules.--
``(i) In [NOTE: Deadline. Federal
Register, publication. general.--Not later than
120 days after the date on which a direct final
rule issued under subparagraph (A)(i) is published
in the Federal Register, the Secretary shall
withdraw the direct final rule if--
``(I) the Secretary receives 1 or
more adverse public comments relating to
the direct final rule under subparagraph
(B)(i) or any alternative joint
recommendation; and
``(II) based on the rulemaking
record relating to the direct final
rule, the Secretary determines that such
adverse public comments or alternative
joint recommendation may provide a
reasonable basis for withdrawing the
direct final rule under subsection (o),
section 342(a)(6)(B), or any other
applicable law.
``(ii) Action on withdrawal.--On withdrawal of
a direct final rule under clause (i), the
Secretary shall--

[[Page 1561]]
121 STAT. 1561

``(I) proceed with the notice of
proposed rulemaking published
simultaneously with the direct final
rule as described in subparagraph
(A)(i); and
``(II) [NOTE: Federal
Register, publication. publish in the
Federal Register the reasons why the
direct final rule was withdrawn.
``(iii) Treatment of withdrawn direct final
rules.--A direct final rule that is withdrawn
under clause (i) shall not be considered to be a
final rule for purposes of subsection (o).
``(D) Effect of paragraph.--Nothing in this
paragraph authorizes the Secretary to issue a direct
final rule based solely on receipt of more than 1
statement containing recommended standards relating to
the direct final rule.''.

(b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy
and Conservation Act (42 U.S.C. 6316(b)(1)) is amended in the first
sentence by inserting ``section 325(p)(5),'' after ``The provisions
of''.

SEC. 309. BATTERY CHARGERS.

Section 325(u)(1)(E) of the Energy Policy and Conservation Act (42
U.S.C. 6295(u)(1)(E)) is amended--
(1) by striking ``(E)(i) Not'' and inserting the following:
``(E) External power supplies and battery
chargers.--
``(i) Energy conservation standards.--
``(I) External power supplies.--
Not'';
(2) by striking ``3 years'' and inserting ``2 years'';
(3) by striking ``battery chargers and'' each place it
appears; and
(4) by adding at the end the following:
``(II)
Battery [NOTE: Deadline. Regulations.
chargers.--Not later than July 1, 2011,
the Secretary shall issue a final rule
that prescribes energy conservation
standards for battery chargers or
classes of battery chargers or determine
that no energy conservation standard is
technically feasible and economically
justified.''.

SEC. 310. STANDBY MODE.

Section 325 of the Energy Policy and Conservation Act (42 U.S.C.
6295) is amended--
(1) in subsection (u)--
(A) by striking paragraphs (2), (3), and (4); and
(B) by redesignating paragraphs (5) and (6) as
paragraphs (2) and (3), respectively;
(2) by redesignating subsection (gg) as subsection (hh);
(3) by inserting after subsection (ff) the following:

``(gg) Standby Mode Energy Use.--
``(1) Definitions.--
``(A) In general.--Unless the Secretary determines
otherwise pursuant to subparagraph (B), in this
subsection:
``(i) Active mode.--The term `active mode'
means the condition in which an energy-using
product--
``(I) is connected to a main power
source;
``(II) has been activated; and
``(III) provides 1 or more main
functions.
``(ii) Off mode.--The term `off mode' means
the condition in which an energy-using product--
``(I) is connected to a main power
source; and

[[Page 1562]]
121 STAT. 1562

``(II) is not providing any standby
or active mode function.
``(iii) Standby mode.--The term `standby mode'
means the condition in which an energy-using
product--
``(I) is connected to a main power
source; and
``(II) offers 1 or more of the
following user-oriented or protective
functions:
``(aa) To facilitate the
activation or deactivation of
other functions (including
active mode) by remote switch
(including remote control),
internal sensor, or timer.
``(bb) Continuous functions,
including information or status
displays (including clocks) or
sensor-based functions.
``(B) Amended definitions.--The Secretary may, by
rule, amend the definitions under subparagraph (A),
taking into consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission.
``(2) Test procedures.--
``(A) In general.--Test procedures for all covered
products shall be amended pursuant to section 323 to
include standby mode and off mode energy consumption,
taking into consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission, with such energy
consumption integrated into the overall energy
efficiency, energy consumption, or other energy
descriptor for each covered product, unless the
Secretary determines that--
``(i) the current test procedures for a
covered product already fully account for and
incorporate the standby mode and off mode energy
consumption of the covered product; or
``(ii) such an integrated test procedure is
technically infeasible for a particular covered
product, in which case the Secretary shall
prescribe a separate standby mode and off mode
energy use test procedure for the covered product,
if technically feasible.
``(B) Deadlines.--The [NOTE: Regulations. test
procedure amendments required by subparagraph (A) shall
be prescribed in a final rule no later than the
following dates:
``(i) December 31, 2008, for battery chargers
and external power supplies.
``(ii) March 31, 2009, for clothes dryers,
room air conditioners, and fluorescent lamp
ballasts.
``(iii) June 30, 2009, for residential clothes
washers.
``(iv) September 30, 2009, for residential
furnaces and boilers.
``(v) March 31, 2010, for residential water
heaters, direct heating equipment, and pool
heaters.
``(vi) March 31, 2011, for residential
dishwashers, ranges and ovens, microwave ovens,
and dehumidifiers.
``(C) Prior product standards.--The test procedure
amendments adopted pursuant to subparagraph (B) shall

[[Page 1563]]
121 STAT. 1563

not be used to determine compliance with product
standards established prior to the adoption of the
amended test procedures.
``(3) Incorporation into standard.--
``(A) In general.--Subject to subparagraph (B),
based on the test procedures required under paragraph
(2), any final rule establishing or revising a standard
for a covered product, adopted after July 1, 2010, shall
incorporate standby mode and off mode energy use into a
single amended or new standard, pursuant to subsection
(o), if feasible.
``(B) Separate standards.--If not feasible, the
Secretary shall prescribe within the final rule a
separate standard for standby mode and off mode energy
consumption, if justified under subsection (o).''; and
(4) in paragraph (2) of subsection (hh) (as redesignated by
paragraph (2)), by striking ``(ff)'' each place it appears and
inserting ``(gg)''.

SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.

(a) Appliances.--
(1) Dehumidifiers.--Section 325(cc) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(cc)) is amended by striking
paragraph (2) and inserting the following:
``(2) Dehumidifiers manufactured on or after october 1,
2012.--Dehumidifiers manufactured on or after October 1, 2012,
shall have an Energy Factor that meets or exceeds the following
values:




``Product Capacity (pints/day):  Minimum Energy Factor (liters/
kWh)
Up to 35.00..................  1.35
35.01-45.00..................  1.50
45.01-54.00..................  1.60
54.01-75.00..................  1.70
Greater than 75.00...........  2.5.''.


(2) Residential clothes washers and residential
dishwashers.--Section 325(g) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(g)) is amended by adding at the
end the following:
``(9) Residential clothes washers manufactured on or after
january 1, 2011.--
``(A) In general.--A top-loading or front-loading
standard-size residential clothes washer manufactured on
or after January 1, 2011, shall have--
``(i) a Modified Energy Factor of at least
1.26; and
``(ii) a water factor of not more than 9.5.
``(B) Amendment of standards.--
``(i)
In [NOTE: Deadline. Regulations. general.--Not
later than December 31, 2011, the Secretary shall
publish a final rule determining whether to amend
the standards in effect for clothes washers
manufactured on or after January 1, 2015.

[[Page 1564]]
121 STAT. 1564

``(ii) Amended standards.--The final rule
shall contain any amended standards.
``(10) Residential dishwashers manufactured on or after
january 1, 2010.--
``(A) In general.--A dishwasher manufactured on or
after January 1, 2010, shall--
``(i) for a standard size dishwasher not
exceed 355 kWh/year and 6.5 gallons per cycle; and
``(ii) for a compact size dishwasher not
exceed 260 kWh/year and 4.5 gallons per cycle.
``(B) Amendment of standards.--
``(i)
In [NOTE: Deadline. Regulations. general.--Not
later than January 1, 2015, the Secretary shall
publish a final rule determining whether to amend
the standards for dishwashers manufactured on or
after January 1, 2018.
``(ii) Amended standards.--The final rule
shall contain any amended standards.''.
(3) Refrigerators and freezers.--Section 325(b) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is
amended by adding at the end the following:
``(4) Refrigerators and freezers manufactured on or after
january 1, 2014.--
``(A) In [NOTE: Deadline. Regulations. general.--
Not later than December 31, 2010, the Secretary shall
publish a final rule determining whether to amend the
standards in effect for refrigerators, refrigerator-
freezers, and freezers manufactured on or after January
1, 2014.
``(B) Amended standards.--The final rule shall
contain any amended standards.''.

(b) Energy Star.--Section 324A(d)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking
``January 1, 2010'' and inserting ``July 1, 2009''.

SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.

(a) Definitions.--Section 340 of the Energy Policy and Conservation
Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (G) through (K)
as subparagraphs (H) through (L), respectively; and
(B) by inserting after subparagraph (F) the
following:
``(G) Walk-in coolers and walk-in freezers.'';
(2) by redesignating paragraphs (20) and (21) as paragraphs
(21) and (22), respectively; and
(3) by inserting after paragraph (19) the following:
``(20) Walk-in cooler; walk-in freezer.--
``(A) In general.--The terms `walk-in cooler' and
`walk-in freezer' mean an enclosed storage space
refrigerated to temperatures, respectively, above, and
at or below 32 degrees Fahrenheit that can be walked
into, and has a total chilled storage area of less than
3,000 square feet.
``(B) Exclusion.--The terms `walk-in cooler' and
`walk-in freezer' do not include products designed and
marketed exclusively for medical, scientific, or
research purposes.''.

(b) Standards.--Section 342 of the Energy Policy and Conservation
Act (42 U.S.C. 6313) is amended by adding at the end the following:
``(f) Walk-In Coolers and Walk-In Freezers.--

[[Page 1565]]
121 STAT. 1565

``(1) In general.--Subject to paragraphs (2) through (5),
each walk-in cooler or walk-in freezer manufactured on or after
January 1, 2009, shall--
``(A) have automatic door closers that firmly close
all walk-in doors that have been closed to within 1 inch
of full closure, except that this subparagraph shall not
apply to doors wider than 3 feet 9 inches or taller than
7 feet;
``(B) have strip doors, spring hinged doors, or
other method of minimizing infiltration when doors are
open;
``(C) contain wall, ceiling, and door insulation of
at least R-25 for coolers and R-32 for freezers, except
that this subparagraph shall not apply to glazed
portions of doors nor to structural members;
``(D) contain floor insulation of at least R-28 for
freezers;
``(E) for evaporator fan motors of under 1
horsepower and less than 460 volts, use--
``(i) electronically commutated motors
(brushless direct current motors); or
``(ii) 3-phase motors;
``(F) for condenser fan motors of under 1
horsepower, use--
``(i) electronically commutated motors;
``(ii) permanent split capacitor-type motors;
or
``(iii) 3-phase motors; and
``(G) for all interior lights, use light sources
with an efficacy of 40 lumens per watt or more,
including ballast losses (if any), except that light
sources with an efficacy of 40 lumens per watt or less,
including ballast losses (if any), may be used in
conjunction with a timer or device that turns off the
lights within 15 minutes of when the walk-in cooler or
walk-in freezer is not occupied by people.
``(2) Electronically commutated motors.--
``(A) In [NOTE: Effective date. general.--The
requirements of paragraph (1)(E)(i) for electronically
commutated motors shall take effect January 1, 2009,
unless, prior to that date, the Secretary determines
that such motors are only available from 1 manufacturer.
``(B) Other types of motors.--In carrying out
paragraph (1)(E)(i) and subparagraph (A), the Secretary
may allow other types of motors if the Secretary
determines that, on average, those other motors use no
more energy in evaporator fan applications than
electronically commutated motors.
``(C) Maximum [NOTE: Deadline. energy consumption
level.--The Secretary shall establish the maximum energy
consumption level under subparagraph (B) not later than
January 1, 2010.
``(3) Additional specifications.--Each walk-in cooler or
walk-in freezer with transparent reach-in doors manufactured on
or after January 1, 2009, shall also meet the following
specifications:
``(A) Transparent reach-in doors for walk-in
freezers and windows in walk-in freezer doors shall be
of triple-pane glass with either heat-reflective treated
glass or gas fill.

[[Page 1566]]
121 STAT. 1566

``(B) Transparent reach-in doors for walk-in coolers
and windows in walk-in cooler doors shall be--
``(i) double-pane glass with heat-reflective
treated glass and gas fill; or
``(ii) triple-pane glass with either heat-
reflective treated glass or gas fill.
``(C) If the appliance has an antisweat heater
without antisweat heat controls, the appliance shall
have a total door rail, glass, and frame heater power
draw of not more than 7.1 watts per square foot of door
opening (for freezers) and 3.0 watts per square foot of
door opening (for coolers).
``(D) If the appliance has an antisweat heater with
antisweat heat controls, and the total door rail, glass,
and frame heater power draw is more than 7.1 watts per
square foot of door opening (for freezers) and 3.0 watts
per square foot of door opening (for coolers), the
antisweat heat controls shall reduce the energy use of
the antisweat heater in a quantity corresponding to the
relative humidity in the air outside the door or to the
condensation on the inner glass pane.
``(4) Performance-based standards.--
``(A) In [NOTE: Deadline. Publication. general.--
Not later than January 1, 2012, the Secretary shall
publish performance-based standards for walk-in coolers
and walk-in freezers that achieve the maximum
improvement in energy that the Secretary determines is
technologically feasible and economically justified.
``(B) Application.--
``(i) In general.--Except as provided in
clause (ii), the standards shall apply to products
described in subparagraph (A) that are
manufactured beginning on the date that is 3 years
after the final rule is published.
``(ii) Delayed effective date.--If the
Secretary determines, by rule, that a 3-year
period is inadequate, the Secretary may establish
an effective date for products manufactured
beginning on the date that is not more than 5
years after the date of publication of a final
rule for the products.
``(5) Amendment of standards.--
``(A)
In [NOTE: Deadline. Publication. Regulations. general.
--Not later than January 1, 2020, the Secretary shall
publish a final rule to determine if the standards
established under paragraph (4) should be amended.
``(B) Application.--
``(i) In general.--Except as provided in
clause (ii), the rule shall provide that the
standards shall apply to products manufactured
beginning on the date that is 3 years after the
final rule is published.
``(ii) Delayed effective date.--If the
Secretary determines, by rule, that a 3-year
period is inadequate, the Secretary may establish
an effective date for products manufactured
beginning on the date that is not more than 5
years after the date of publication of a final
rule for the products.''.

(c) Test Procedures.--Section 343(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the end the
following:

[[Page 1567]]
121 STAT. 1567

``(9) Walk-in coolers and walk-in freezers.--
``(A) In general.--For the purpose of test
procedures for walk-in coolers and walk-in freezers:
``(i) The R value shall be the 1/K factor
multiplied by the thickness of the panel.
``(ii) The K factor shall be based on ASTM
test procedure C518-2004.
``(iii) For calculating the R value for
freezers, the K factor of the foam at 20F
(average foam temperature) shall be used.
``(iv) For calculating the R value for
coolers, the K factor of the foam at 55F (average
foam temperature) shall be used.
``(B) Test procedure.--
``(i) In [NOTE: Deadline. general.--Not
later than January 1, 2010, the Secretary shall
establish a test procedure to measure the energy-
use of walk-in coolers and walk-in freezers.
``(ii) Computer modeling.--The test procedure
may be based on computer modeling, if the computer
model or models have been verified using the
results of laboratory tests on a significant
sample of walk-in coolers and walk-in freezers.''.

(d) Labeling.--Section 344(e) of the Energy Policy and Conservation
Act (42 U.S.C. 6315(e)) is amended by inserting ``walk-in coolers and
walk-in freezers,'' after ``commercial clothes washers,'' each place it
appears.
(e) Administration, Penalties, Enforcement, and Preemption.--Section
345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) is
amended--
(1) by striking ``subparagraphs (B), (C), (D), (E), and
(F)'' each place it appears and inserting ``subparagraphs (B)
through (G)''; and
(2) by adding at the end the following:

``(h) Walk-In Coolers and Walk-In Freezers.--
``(1) Covered types.--
``(A) Relationship to other law.--
``(i) In [NOTE: Applicability. general.--
Except as otherwise provided in this subsection,
section 327 shall apply to walk-in coolers and
walk-in freezers for which standards have been
established under paragraphs (1), (2), and (3) of
section 342(f) to the same extent and in the same
manner as the section applies under part A on the
date of enactment of this subsection.
``(ii) State standards.--Any State standard
prescribed before the date of enactment of this
subsection shall not be preempted until the
standards established under paragraphs (1) and (2)
of section 342(f) take effect.
``(B) Administration.--
In [NOTE: Applicability. applying section 327 to
equipment under subparagraph (A), paragraphs (1), (2),
and (3) of subsection (a) shall apply.
``(2) Final rule not timely.--
``(A) In general.--If the Secretary does not issue a
final rule for a specific type of walk-in cooler or
walk-in freezer within the timeframe established under
paragraph (4) or (5) of section 342(f), subsections (b)
and (c)

[[Page 1568]]
121 STAT. 1568

of section 327 shall no longer apply to the specific
type of walk-in cooler or walk-in freezer during the
period--
``(i) beginning on the day after the scheduled
date for a final rule; and
``(ii) ending on the date on which the
Secretary publishes a final rule covering the
specific type of walk-in cooler or walk-in
freezer.
``(B) State standards.--Any State standard issued
before the publication of the final rule shall not be
preempted until the standards established in the final
rule take effect.
``(3) California.--Any standard issued in the State of
California before January 1, 2011, under title 20 of the
California Code of Regulations, that refers to walk-in coolers
and walk-in freezers, for which standards have been established
under paragraphs (1), (2), and (3) of section 342(f), shall not
be preempted until the standards established under section
342(f)(3) take effect.''.

SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS.

(a) Definitions.--Section 340(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6311(13)) is amended--
(1) by redesignating subparagraphs (B) through (H) as
subparagraphs (C) through (I), respectively; and
(2) by striking ``(13)(A)'' and all that follows through the
end of subparagraph (A) and inserting the following:
``(13) Electric motor.--
``(A) General purpose electric motor (subtype i).--
The term `general purpose electric motor (subtype I)'
means any motor that meets the definition of `General
Purpose' as established in the final rule issued by the
Department of Energy entitled `Energy Efficiency Program
for Certain Commercial and Industrial Equipment: Test
Procedures, Labeling, and Certification Requirements for
Electric Motors' (10 CFR 431), as in effect on the date
of enactment of the Energy Independence and Security Act
of 2007.
``(B) General purpose electric motor (subtype ii).--
The term `general purpose electric motor (subtype II)'
means motors incorporating the design elements of a
general purpose electric motor (subtype I) that are
configured as 1 of the following:
``(i) A U-Frame Motor.
``(ii) A Design C Motor.
``(iii) A close-coupled pump motor.
``(iv) A Footless motor.
``(v) A vertical solid shaft normal thrust
motor (as tested in a horizontal configuration).
``(vi) An 8-pole motor (900 rpm).
``(vii) A poly-phase motor with voltage of not
more than 600 volts (other than 230 or 460
volts.''.

(b) Standards.--
(1) Amendments.--Section 342(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(b)) is amended--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Electric motors.--

[[Page 1569]]
121 STAT. 1569

``(A) General purpose electric motors (subtype i).--
Except as provided in subparagraph (B), each general
purpose electric motor (subtype I) with a power rating
of 1 horsepower or greater, but not greater than 200
horsepower, manufactured (alone or as a component of
another piece of equipment) after the 3-year period
beginning on the date of enactment of the Energy
Independence and Security Act of 2007, shall have a
nominal full load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-12.
``(B) Fire pump motors.--Each fire pump motor
manufactured (alone or as a component of another piece
of equipment) after the 3-year period beginning on the
date of enactment of the Energy Independence and
Security Act of 2007 shall have nominal full load
efficiency that is not less than as defined in NEMA MG-1
(2006) Table 12-11.
``(C) General purpose electric motors (subtype
ii).--Each general purpose electric motor (subtype II)
with a power rating of 1 horsepower or greater, but not
greater than 200 horsepower, manufactured (alone or as a
component of another piece of equipment) after the 3-
year period beginning on the date of enactment of the
Energy Independence and Security Act of 2007, shall have
a nominal full load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-11.
``(D) NEMA design b, general purpose electric
motors.--Each NEMA Design B, general purpose electric
motor with a power rating of more than 200 horsepower,
but not greater than 500 horsepower, manufactured (alone
or as a component of another piece of equipment) after
the 3-year period beginning on the date of enactment of
the Energy Independence and Security Act of 2007, shall
have a nominal full load efficiency that is not less
than as defined in NEMA MG-1 (2006) Table 12-11.''.
(2) Effective [NOTE: 42 USC 6313 note. date.--The
amendments made by paragraph (1) take effect on the date that is
3 years after the date of enactment of this Act.

SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND
HEAT PUMPS.

(a) Definitions.--Section 340 of the Energy Policy and Conservation
Act (42 U.S.C. 6311) is amended by adding at the end the following:
``(22) Single package vertical air conditioner.--The term
`single package vertical air conditioner' means air-cooled
commercial package air conditioning and heating equipment that--
``(A) is factory-assembled as a single package
that--
``(i) has major components that are arranged
vertically;
``(ii) is an encased combination of cooling
and optional heating components; and
``(iii) is intended for exterior mounting on,
adjacent interior to, or through an outside wall;
``(B) is powered by a single- or 3-phase current;

[[Page 1570]]
121 STAT. 1570

``(C) may contain 1 or more separate indoor grilles,
outdoor louvers, various ventilation options, indoor
free air discharges, ductwork, well plenum, or sleeves;
and
``(D) has heating components that may include
electrical resistance, steam, hot water, or gas, but may
not include reverse cycle refrigeration as a heating
means.
``(23) Single package vertical heat pump.--The term `single
package vertical heat pump' means a single package vertical air
conditioner that--
``(A) uses reverse cycle refrigeration as its
primary heat source; and
``(B) may include secondary supplemental heating by
means of electrical resistance, steam, hot water, or
gas.''.

(b) Standards.--Section 342(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(a)) is amended--
(1) in the first sentence of each of paragraphs (1) and (2),
by inserting ``(including single package vertical air
conditioners and single package vertical heat pumps)'' after
``heating equipment'' each place it appears;
(2) in paragraph (1), by striking ``but before January 1,
2010,'';
(3) in the first sentence of each of paragraphs (7), (8),
and (9), by inserting ``(other than single package vertical air
conditioners and single package vertical heat pumps)'' after
``heating equipment'' each place it appears;
(4) in paragraph (7)--
(A) by striking ``manufactured on or after January
1, 2010,'';
(B) in each of subparagraphs (A), (B), and (C), by
striking ``The'' and inserting ``For equipment
manufactured on or after January 1, 2010, the''; and
(C) by adding at the end the following:
``(D) For equipment manufactured on or after the later of
January 1, 2008, or the date that is 180 days after the date of
enactment of the Energy Independence and Security Act of 2007--
``(i) the minimum seasonal energy efficiency ratio
of air-cooled 3-phase electric central air conditioners
and central air conditioning heat pumps less than 65,000
Btu per hour (cooling capacity), split systems, shall be
13.0;
``(ii) the minimum seasonal energy efficiency ratio
of air-cooled 3-phase electric central air conditioners
and central air conditioning heat pumps less than 65,000
Btu per hour (cooling capacity), single package, shall
be 13.0;
``(iii) the minimum heating seasonal performance
factor of air-cooled 3-phase electric central air
conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), split systems, shall be 7.7; and
``(iv) the minimum heating seasonal performance
factor of air-cooled 3-phase electric central air
conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), single package, shall be 7.7.''; and
(5) by adding at the end the following:
``(10) Single package vertical air conditioners and single
package vertical heat pumps.--

[[Page 1571]]
121 STAT. 1571

``(A) In general.--Single package vertical air
conditioners and single package vertical heat pumps
manufactured on or after January 1, 2010, shall meet the
following standards:
``(i) The minimum energy efficiency ratio of
single package vertical air conditioners less than
65,000 Btu per hour (cooling capacity), single-
phase, shall be 9.0.
``(ii) The minimum energy efficiency ratio of
single package vertical air conditioners less than
65,000 Btu per hour (cooling capacity), 3-phase,
shall be 9.0.
``(iii) The minimum energy efficiency ratio of
single package vertical air conditioners at or
above 65,000 Btu per hour (cooling capacity) but
less than 135,000 Btu per hour (cooling capacity),
shall be 8.9.
``(iv) The minimum energy efficiency ratio of
single package vertical air conditioners at or
above 135,000 Btu per hour (cooling capacity) but
less than 240,000 Btu per hour (cooling capacity),
shall be 8.6.
``(v) The minimum energy efficiency ratio of
single package vertical heat pumps less than
65,000 Btu per hour (cooling capacity), single-
phase, shall be 9.0 and the minimum coefficient of
performance in the heating mode shall be 3.0.
``(vi) The minimum energy efficiency ratio of
single package vertical heat pumps less than
65,000 Btu per hour (cooling capacity), 3-phase,
shall be 9.0 and the minimum coefficient of
performance in the heating mode shall be 3.0.
``(vii) The minimum energy efficiency ratio of
single package vertical heat pumps at or above
65,000 Btu per hour (cooling capacity) but less
than 135,000 Btu per hour (cooling capacity),
shall be 8.9 and the minimum coefficient of
performance in the heating mode shall be 3.0.
``(viii) The minimum energy efficiency ratio
of single package vertical heat pumps at or above
135,000 Btu per hour (cooling capacity) but less
than 240,000 Btu per hour (cooling capacity),
shall be 8.6 and the minimum coefficient of
performance in the heating mode shall be 2.9.
``(B) Review.--Not [NOTE: Deadline. later than 3
years after the date of enactment of this paragraph, the
Secretary shall review the most recently published
ASHRAE/IES Standard 90.1 with respect to single package
vertical air conditioners and single package vertical
heat pumps in accordance with the procedures established
under paragraph (6).''.

SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND BUILDINGS IN
COLD CLIMATES.

(a) Research.--Section 911(a)(2) of the Energy Policy Act of 2005
(42 U.S.C. 16191(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) technologies to improve the energy efficiency
of appliances and mechanical systems for buildings in
cold

[[Page 1572]]
121 STAT. 1572

climates, including combined heat and power units and
increased use of renewable resources, including fuel.''.

(b) Rebates.--Section 124 of the Energy Policy Act of 2005 (42
U.S.C. 15821) is amended--
(1) in subsection (b)(1), by inserting ``, or products with
improved energy efficiency in cold climates,'' after
``residential Energy Star products''; and
(2) in subsection (e), by inserting ``or product with
improved energy efficiency in a cold climate'' after
``residential Energy Star product'' each place it appears.

SEC. 316. TECHNICAL CORRECTIONS.

(a) Definition of F96T12 Lamp.--
(1) In general.--Section 135(a)(1)(A)(ii) of the Energy
Policy Act of 2005 (Public Law 109-58; [NOTE: 42 USC
6291. 119 Stat. 624) is amended by striking ``C78.1-1978
(R1984)'' and inserting ``C78.3-1978 (R1984)''.
(2) Effective [NOTE: 42 USC 6291 note. date.--The
amendment made by paragraph (1) takes effect on August 8, 2005.

(b) Definition of Fluorescent Lamp.--Section 321(30)(B)(viii) of the
Energy Policy and Conservation Act (42 U.S.C. 6291(30)(B)(viii)) is
amended by striking ``82'' and inserting ``87''.
(c) Mercury Vapor Lamp Ballasts.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
301(a)(2)) is amended--
(A) by striking paragraphs (46) through (48) and
inserting the following:
``(46) High intensity discharge lamp.--
``(A) In general.--The term `high intensity
discharge lamp' means an electric-discharge lamp in
which--
``(i) the light-producing arc is stabilized by
the arc tube wall temperature; and
``(ii) the arc tube wall loading is in excess
of 3 Watts/cm\2\.
``(B) Inclusions.--The term `high intensity
discharge lamp' includes mercury vapor, metal halide,
and high-pressure sodium lamps described in subparagraph
(A).
``(47) Mercury vapor lamp.--
``(A) In general.--The term `mercury vapor lamp'
means a high intensity discharge lamp in which the major
portion of the light is produced by radiation from
mercury typically operating at a partial vapor pressure
in excess of 100,000 Pa (approximately 1 atm).
``(B) Inclusions.--The term `mercury vapor lamp'
includes clear, phosphor-coated, and self-ballasted
screw base lamps described in subparagraph (A).
``(48) Mercury vapor lamp ballast.--The term `mercury vapor
lamp ballast' means a device that is designed and marketed to
start and operate mercury vapor lamps intended for general
illumination by providing the necessary voltage and current.'';
and
(B) by adding at the end the following:
``(53) Specialty application mercury vapor lamp ballast.--
The term `specialty application mercury vapor lamp ballast'
means a mercury vapor lamp ballast that--

[[Page 1573]]
121 STAT. 1573

``(A) is designed and marketed for operation of
mercury vapor lamps used in quality inspection,
industrial processing, or scientific use, including
fluorescent microscopy and ultraviolet curing; and
``(B) in the case of a specialty application mercury
vapor lamp ballast, the label of which--
``(i) provides that the specialty application
mercury vapor lamp ballast is `For specialty
applications only, not for general illumination';
and
``(ii) specifies the specific applications for
which the ballast is designed.''.
(2) Standard setting authority.--Section 325(ee) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is
amended by inserting ``(other than specialty application mercury
vapor lamp ballasts)'' after ``ballasts''.

(d) Energy Conservation Standards.--Section 325 of the Energy Policy
and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (v)--
(A) in the subsection heading, by striking ``Ceiling
Fans and'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(2) in subsection (ff)--
(A) in paragraph (1)(A)--
(i) by striking clause (iii);
(ii) by redesignating clause (iv) as clause
(iii); and
(iii) in clause (iii)(II) (as so
redesignated), by inserting ``fans sold for''
before ``outdoor''; and
(B) in paragraph (4)(C)--
(i) in the matter preceding clause (i), by
striking ``subparagraph (B)'' and inserting
``subparagraph (A)''; and
(ii) by striking clause (ii) and inserting the
following:
``(ii) shall be packaged with lamps to fill all sockets.'';
(C) in paragraph (6), by redesignating subparagraphs
(C) and (D) as clauses (i) and (ii), respectively, of
subparagraph (B); and
(D) in paragraph (7), by striking ``327'' the second
place it appears and inserting ``324''.

Subtitle B--Lighting Energy Efficiency

SEC. 321. EFFICIENT LIGHT BULBS.

(a) Energy Efficiency Standards for General Service Incandescent
Lamps.--
(1) Definition of general service incandescent lamp.--
Section 321(30) of the Energy Policy and Conservation Act (42
U.S.C. 6291(30)) is amended--
(A) by striking subparagraph (D) and inserting the
following:
``(D) General service incandescent lamp.--
``(i) In general.--The term `general service
incandescent lamp' means a standard incandescent
or halogen type lamp that--

[[Page 1574]]
121 STAT. 1574

``(I) is intended for general
service applications;
``(II) has a medium screw base;
``(III) has a lumen range of not
less than 310 lumens and not more than
2,600 lumens; and
``(IV) is capable of being operated
at a voltage range at least partially
within 110 and 130 volts.
``(ii) Exclusions.--The term `general service
incandescent lamp' does not include the following
incandescent lamps:
``(I) An appliance lamp.
``(II) A black light lamp.
``(III) A bug lamp.
``(IV) A colored lamp.
``(V) An infrared lamp.
``(VI) A left-hand thread lamp.
``(VII) A marine lamp.
``(VIII) A marine signal service
lamp.
``(IX) A mine service lamp.
``(X) A plant light lamp.
``(XI) A reflector lamp.
``(XII) A rough service lamp.
``(XIII) A shatter-resistant lamp
(including a shatter-proof lamp and a
shatter-protected lamp).
``(XIV) A sign service lamp.
``(XV) A silver bowl lamp.
``(XVI) A showcase lamp.
``(XVII) A 3-way incandescent lamp.
``(XVIII) A traffic signal lamp.
``(XIX) A vibration service lamp.
``(XX) A G shape lamp (as defined in
ANSI C78.20-2003 and C79.1-2002 with a
diameter of 5 inches or more.
``(XXI) A T shape lamp (as defined
in ANSI C78.20-2003 and C79.1-2002) and
that uses not more than 40 watts or has
a length of more than 10 inches.
``(XXII) A B, BA, CA, F, G16-1/2, G-
25, G30, S, or M-14 lamp (as defined in
ANSI C79.1-2002 and ANSI C78.20-2003) of
40 watts or less.''; and
(B) by adding at the end the following:
``(T) Appliance lamp.--The term `appliance lamp'
means any lamp that--
``(i) is specifically designed to operate in a
household appliance, has a maximum wattage of 40
watts, and is sold at retail, including an oven
lamp, refrigerator lamp, and vacuum cleaner lamp;
and
``(ii) is designated and marketed for the
intended application, with--
``(I) the designation on the lamp
packaging; and
``(II) marketing materials that
identify the lamp as being for appliance
use.
``(U) Candelabra base incandescent lamp.--The term
`candelabra base incandescent lamp' means a lamp that
uses candelabra screw base as described in ANSI

[[Page 1575]]
121 STAT. 1575

C81.61-2006, Specifications for Electric Bases, common
designations E11 and E12.
``(V) Intermediate base incandescent lamp.--The term
`intermediate base incandescent lamp' means a lamp that
uses an intermediate screw base as described in ANSI
C81.61-2006, Specifications for Electric Bases, common
designation E17.
``(W) Modified spectrum.--The term `modified
spectrum' means, with respect to an incandescent lamp,
an incandescent lamp that--
``(i) is not a colored incandescent lamp; and
``(ii) when operated at the rated voltage and
wattage of the incandescent lamp--
``(I) has a color point with (x,y)
chromaticity coordinates on the
Commission Internationale de l'Eclairage
(C.I.E.) 1931 chromaticity diagram that
lies below the black-body locus; and
``(II) has a color point with (x,y)
chromaticity coordinates on the C.I.E.
1931 chromaticity diagram that lies at
least 4 MacAdam steps (as referenced in
IESNA LM16) distant from the color point
of a clear lamp with the same filament
and bulb shape, operated at the same
rated voltage and wattage.
``(X) Rough service lamp.--The term `rough service
lamp' means a lamp that--
``(i) has a minimum of 5 supports with
filament configurations that are C-7A, C-11, C-17,
and C-22 as listed in Figure 6-12 of the 9th
edition of the IESNA Lighting handbook, or similar
configurations where lead wires are not counted as
supports; and
``(ii) is designated and marketed specifically
for `rough service' applications, with--
``(I) the designation appearing on
the lamp packaging; and
``(II) marketing materials that
identify the lamp as being for rough
service.
``(Y) 3-way incandescent lamp.--The term `3-way
incandescent lamp' includes an incandescent lamp that--
``(i) employs 2 filaments, operated separately
and in combination, to provide 3 light levels; and
``(ii) is designated on the lamp packaging and
marketing materials as being a 3-way incandescent
lamp.
``(Z) Shatter-resistant lamp, shatter-proof lamp, or
shatter-protected lamp.--The terms `shatter-resistant
lamp', `shatter-proof lamp', and `shatter-protected
lamp' mean a lamp that--
``(i) has a coating or equivalent technology
that is compliant with NSF/ANSI 51 and is designed
to contain the glass if the glass envelope of the
lamp is broken; and
``(ii) is designated and marketed for the
intended application, with--
``(I) the designation on the lamp
packaging; and

[[Page 1576]]
121 STAT. 1576

``(II) marketing materials that
identify the lamp as being shatter-
resistant, shatter-proof, or shatter-
protected.
``(AA) Vibration service lamp.--The term `vibration
service lamp' means a lamp that--
``(i) has filament configurations that are C-
5, C-7A, or C-9, as listed in Figure 6-12 of the
9th Edition of the IESNA Lighting Handbook or
similar configurations;
``(ii) has a maximum wattage of 60 watts;
``(iii) is sold at retail in packages of 2
lamps or less; and
``(iv) is designated and marketed specifically
for vibration service or vibration-resistant
applications, with--
``(I) the designation appearing on
the lamp packaging; and
``(II) marketing materials that
identify the lamp as being vibration
service only.
``(BB) General service lamp.--
``(i) In general.--The term `general service
lamp' includes--
``(I) general service incandescent
lamps;
``(II) compact fluorescent lamps;
``(III) general service light-
emitting diode (LED or OLED) lamps; and
``(IV) any other lamps that the
Secretary determines are used to satisfy
lighting applications traditionally
served by general service incandescent
lamps.
``(ii) Exclusions.--The term `general service
lamp' does not include--
``(I) any lighting application or
bulb shape described in any of
subclauses (I) through (XXII) of
subparagraph (D)(ii); or
``(II) any general service
fluorescent lamp or incandescent
reflector lamp.
``(CC) Light-emitting diode; led.--
``(i) In general.--The terms `light-emitting
diode' and `LED' means a p-n junction solid state
device the radiated output of which is a function
of the physical construction, material used, and
exciting current of the device.
``(ii) Output.--The output of a light-emitting
diode may be in--
``(I) the infrared region;
``(II) the visible region; or
``(III) the ultraviolet region.
``(DD) Organic light-emitting diode; oled.--The
terms `organic light-emitting diode' and `OLED' mean a
thin-film light-emitting device that typically consists
of a series of organic layers between 2 electrical
contacts (electrodes).
``(EE) Colored incandescent lamp.--The term `colored
incandescent lamp' means an incandescent lamp designated
and marketed as a colored lamp that has--

[[Page 1577]]
121 STAT. 1577

``(i) a color rendering index of less than 50,
as determined according to the test method given
in C.I.E. publication 13.3-1995; or
``(ii) a correlated color temperature of less
than 2,500K, or greater than 4,600K, where
correlated temperature is computed according to
the Journal of Optical Society of America, Vol.
58, pages 1528-1595 (1986).''.
(2) Coverage.--Section 322(a)(14) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)(14)) is amended by inserting
``, general service incandescent lamps,'' after ``fluorescent
lamps''.
(3) Energy conservation standards.--Section 325 of the
Energy Policy and Conservation Act (42 U.S.C. 6295) is amended--
(A) in subsection (i)--
(i) in the section heading, by inserting ``,
General Service Incandescent Lamps, Intermediate
Base Incandescent Lamps, Candelabra Base
Incandescent Lamps,'' after ``Fluorescent Lamps'';
(ii) in paragraph (1)--
(I) in subparagraph (A)--
(aa) by inserting ``,
general service incandescent
lamps, intermediate base
incandescent lamps, candelabra
base incandescent lamps,'' after
``fluorescent lamps'';
(bb) by inserting ``, new
maximum wattage,'' after ``lamp
efficacy''; and
(cc) by inserting after the
table entitled ``incandescent
reflector lamps'' the following:


``GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Maximum Rate     Minimum Rate    Effective
Rated Lumen Ranges           Wattage         Lifetime        Date
------------------------------------------------------------------------
1490-2600                                72     1,000 hrs      1/1/2012
1050-1489                                53     1,000 hrs      1/1/2013
750-1049                                 43     1,000 hrs      1/1/2014
310-749                                  29     1,000 hrs      1/1/2014
------------------------------------------------------------------------



``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Maximum Rate     Minimum Rate    Effective
Rated Lumen Ranges           Wattage         Lifetime        Date
------------------------------------------------------------------------
1118-1950                                72     1,000 hrs      1/1/2012
788-1117                                 53     1,000 hrs      1/1/2013
563-787                                  43     1,000 hrs      1/1/2014
232-562                                  29     1,000 hrs   1/1/2014'';
------------------------------------------------------------------------


and
(II) by striking subparagraph (B)
and inserting the following:
``(B) Application.--

[[Page 1578]]
121 STAT. 1578

``(i) Application criteria.--This subparagraph
applies to each lamp that--
``(I) is intended for a general
service or general illumination
application (whether incandescent or
not);
``(II) has a medium screw base or
any other screw base not defined in ANSI
C81.61-2006;
``(III) is capable of being operated
at a voltage at least partially within
the range of 110 to 130 volts; and
``(IV) is manufactured or imported
after December 31, 2011.
``(ii) Requirement.--For purposes of this
paragraph, each lamp described in clause (i) shall
have a color rendering index that is greater than
or equal to--
``(I) 80 for nonmodified spectrum
lamps; or
``(II) 75 for modified spectrum
lamps.
``(C) Candelabra incandescent lamps and intermediate
base incandescent lamps.--
``(i) Candelabra base incandescent lamps.--A
candelabra base incandescent lamp shall not exceed
60 rated watts.
``(ii) Intermediate base incandescent lamps.--
An intermediate base incandescent lamp shall not
exceed 40 rated watts.
``(D) Exemptions.--
``(i) Petition.--Any person may petition the
Secretary for an exemption for a type of general
service lamp from the requirements of this
subsection.
``(ii) Criteria.--The Secretary may grant an
exemption under clause (i) only to the extent that
the Secretary finds, after a hearing and
opportunity for public comment, that it is not
technically feasible to serve a specialized
lighting application (such as a military, medical,
public safety, or certified historic lighting
application) using a lamp that meets the
requirements of this subsection.
``(iii) Additional criterion.--To grant an
exemption for a product under this subparagraph,
the Secretary shall include, as an additional
criterion, that the exempted product is unlikely
to be used in a general service lighting
application.
``(E) Extension of coverage.--
``(i) Petition.--Any person may petition the
Secretary to establish standards for lamp shapes
or bases that are excluded from the definition of
general service lamps.
``(ii) Increased sales of exempted lamps.--The
petition shall include evidence that the
availability or sales of exempted incandescent
lamps have increased significantly since the date
on which the standards on general service
incandescent lamps were established.
``(iii) Criteria.--The Secretary shall grant a
petition under clause (i) if the Secretary finds
that--

[[Page 1579]]
121 STAT. 1579

``(I) the petition presents evidence
that demonstrates that commercial
availability or sales of exempted
incandescent lamp types have increased
significantly since the standards on
general service lamps were established
and likely are being widely used in
general lighting applications; and
``(II) significant energy savings
could be achieved by covering exempted
products, as determined by the Secretary
based on sales data provided to the
Secretary from manufacturers and
importers.
``(iv) No presumption.--The grant of a
petition under this subparagraph shall create no
presumption with respect to the determination of
the Secretary with respect to any criteria under a
rulemaking conducted under this section.
``(v) Expedited proceeding.--If the Secretary
grants a petition for a lamp shape or base under
this subparagraph, the Secretary shall--
``(I) conduct a rulemaking to
determine standards for the exempted
lamp shape or base; and
``(II) complete the rulemaking not
later than 18 months after the date on
which notice is provided granting the
petition.
``(F) Definition of effective date.--In this
paragraph, except as otherwise provided in a table
contained in subparagraph (A), the term `effective date'
means the last day of the month specified in the table
that follows October 24, 1992.'';
(iii) in paragraph (5), in the first sentence,
by striking ``and general service incandescent
lamps'';
(iv) by redesignating paragraphs (6) and (7)
as paragraphs (7) and (8), respectively; and
(v) by inserting after paragraph (5) the
following:
``(6) Standards for general service lamps.--
``(A) Rulemaking before january 1, 2014.--
``(i) In [NOTE: Deadline. general.--Not
later than January 1, 2014, the Secretary shall
initiate a rulemaking procedure to determine
whether--
``(I) standards in effect for
general service lamps should be amended
to establish more stringent standards
than the standards specified in
paragraph (1)(A); and
``(II) the exemptions for certain
incandescent lamps should be maintained
or discontinued based, in part, on
exempted lamp sales collected by the
Secretary from manufacturers.
``(ii) Scope.--The rulemaking--
``(I) shall not be limited to
incandescent lamp technologies; and
``(II) shall include consideration
of a minimum standard of 45 lumens per
watt for general service lamps.
``(iii)
Amended [NOTE: Publication. Regulations. Deadline.
Effective date. standards.--If the Secretary
determines that the standards in effect for
general service incandescent lamps should be
amended, the Secretary shall publish a final rule
not later than January 1,

[[Page 1580]]
121 STAT. 1580

2017, with an effective date that is not earlier
than 3 years after the date on which the final
rule is published.
``(iv) Phased-in effective dates.--The
Secretary shall consider phased-in effective dates
under this subparagraph after considering--
``(I) the impact of any amendment on
manufacturers, retiring and repurposing
existing equipment, stranded
investments, labor contracts, workers,
and raw materials; and
``(II) the time needed to work with
retailers and lighting designers to
revise sales and marketing strategies.
``(v) Backstop [NOTE: Effective
date. requirement.--If the Secretary fails to
complete a rulemaking in accordance with clauses
(i) through (iv) or if the final rule does not
produce savings that are greater than or equal to
the savings from a minimum efficacy standard of 45
lumens per watt, effective beginning January 1,
2020, the Secretary shall prohibit the sale of any
general service lamp that does not meet a minimum
efficacy standard of 45 lumens per watt.
``(vi)
State [NOTE: California. Nevada. Effective
date. preemption.--Neither section 327(b) nor
any other provision of law shall preclude
California or Nevada from adopting, effective
beginning on or after January 1, 2018--
``(I) a final rule adopted by the
Secretary in accordance with clauses (i)
through (iv);
``(II) if a final rule described in
subclause (I) has not been adopted, the
backstop requirement under clause (v);
or
``(III) in the case of California,
if a final rule described in subclause
(I) has not been adopted, any California
regulations relating to these covered
products adopted pursuant to State
statute in effect as of the date of
enactment of the Energy Independence and
Security Act of 2007.
``(B) Rulemaking before january 1, 2020.--
``(i) In [NOTE: Deadline. general.--Not
later than January 1, 2020, the Secretary shall
initiate a rulemaking procedure to determine
whether--
``(I) standards in effect for
general service incandescent lamps
should be amended to reflect lumen
ranges with more stringent maximum
wattage than the standards specified in
paragraph (1)(A); and
``(II) the exemptions for certain
incandescent lamps should be maintained
or discontinued based, in part, on
exempted lamp sales data collected by
the Secretary from manufacturers.
``(ii) Scope.--The rulemaking shall not be
limited to incandescent lamp technologies.
``(iii)
Amended [NOTE: Publication. Regulation. Deadline.
Effective date. standards.--If the Secretary
determines that the standards in effect for
general service incandescent lamps should be
amended, the Secretary shall publish a final rule
not later than January 1, 2022, with an effective
date that is not earlier than

[[Page 1581]]
121 STAT. 1581

3 years after the date on which the final rule is
published.
``(iv) Phased-in effective dates.--The
Secretary shall consider phased-in effective dates
under this subparagraph after considering--
``(I) the impact of any amendment on
manufacturers, retiring and repurposing
existing equipment, stranded
investments, labor contracts, workers,
and raw materials; and
``(II) the time needed to work with
retailers and lighting designers to
revise sales and marketing
strategies.''; and
(B) in subsection (l), by adding at the end the
following:
``(4) Energy [NOTE: Effective
dates. Deadlines. efficiency standards for certain lamps.--
``(A) In general.--The Secretary shall prescribe an
energy efficiency standard for rough service lamps,
vibration service lamps, 3-way incandescent lamps,
2,601-3,300 lumen general service incandescent lamps,
and shatter-resistant lamps only in accordance with this
paragraph.
``(B) Benchmarks.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary, in
consultation with the National Electrical Manufacturers
Association, shall--
``(i) collect actual data for United States
unit sales for each of calendar years 1990 through
2006 for each of the 5 types of lamps described in
subparagraph (A) to determine the historical
growth rate of the type of lamp; and
``(ii) construct a model for each type of lamp
based on coincident economic indicators that
closely match the historical annual growth rate of
the type of lamp to provide a neutral comparison
benchmark to model future unit sales after
calendar year 2006.
``(C) Actual sales data.--
``(i) In general.--Effective for each of
calendar years 2010 through 2025, the Secretary,
in consultation with the National Electrical
Manufacturers Association, shall--
``(I) collect actual United States
unit sales data for each of 5 types of
lamps described in subparagraph (A); and
``(II) not later than 90 days after
the end of each calendar year, compare
the lamp sales in that year with the
sales predicted by the comparison
benchmark for each of the 5 types of
lamps described in subparagraph (A).
``(ii) Continuation of tracking.--
``(I) Determination.--Not later than
January 1, 2023, the Secretary shall
determine if actual sales data should be
tracked for the lamp types described in
subparagraph (A) after calendar year
2025.
``(II) Continuation.--If the
Secretary finds that the market share of
a lamp type described in subparagraph
(A) could significantly erode the

[[Page 1582]]
121 STAT. 1582

market share for general service lamps,
the Secretary shall continue to track
the actual sales data for the lamp type.
``(D) Rough service lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales rate
for rough service lamps demonstrates actual unit
sales of rough service lamps that achieve levels
that are at least 100 percent higher than modeled
unit sales for that same year, the Secretary
shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for rough service
lamps.
``(ii) Backstop requirement.--If the Secretary
fails to complete an accelerated rulemaking in
accordance with clause (i)(II), effective
beginning 1 year after the date of the issuance of
the finding under clause (i)(I), the Secretary
shall require rough service lamps to--
``(I) have a shatter-proof coating
or equivalent technology that is
compliant with NSF/ANSI 51 and is
designed to contain the glass if the
glass envelope of the lamp is broken and
to provide effective containment over
the life of the lamp;
``(II) have a maximum 40-watt
limitation; and
``(III) be sold at retail only in a
package containing 1 lamp.
``(E) Vibration service lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales rate
for vibration service lamps demonstrates actual
unit sales of vibration service lamps that achieve
levels that are at least 100 percent higher than
modeled unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for vibration
service lamps.
``(ii) Backstop requirement.--If the Secretary
fails to complete an accelerated rulemaking in
accordance with clause (i)(II), effective
beginning 1 year after the date of the issuance of
the finding under clause (i)(I), the Secretary
shall require vibration service lamps to--
``(I) have a maximum 40-watt
limitation; and
``(II) be sold at retail only in a
package containing 1 lamp.
``(F) 3-way incandescent lamps.--

[[Page 1583]]
121 STAT. 1583

``(i) In general.--Effective beginning with
the first year that the reported annual sales rate
for 3-way incandescent lamps demonstrates actual
unit sales of 3-way incandescent lamps that
achieve levels that are at least 100 percent
higher than modeled unit sales for that same year,
the Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for 3-way
incandescent lamps.
``(ii) Backstop requirement.--If the Secretary
fails to complete an accelerated rulemaking in
accordance with clause (i)(II), effective
beginning 1 year after the date of issuance of the
finding under clause (i)(I), the Secretary shall
require that--
``(I) each filament in a 3-way
incandescent lamp meet the new maximum
wattage requirements for the respective
lumen range established under subsection
(i)(1)(A); and
``(II) 3-way lamps be sold at retail
only in a package containing 1 lamp.
``(G) 2,601-3,300 lumen general service incandescent
lamps.--Effective beginning with the first year that the
reported annual sales rate demonstrates actual unit
sales of 2,601-3,300 lumen general service incandescent
lamps in the lumen range of 2,601 through 3,300 lumens
(or, in the case of a modified spectrum, in the lumen
range of 1,951 through 2,475 lumens) that achieve levels
that are at least 100 percent higher than modeled unit
sales for that same year, the Secretary shall impose--
``(i) a maximum 95-watt limitation on general
service incandescent lamps in the lumen range of
2,601 through 3,300 lumens; and
``(ii) a requirement that those lamps be sold
at retail only in a package containing 1 lamp.
``(H) Shatter-resistant lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales rate
for shatter-resistant lamps demonstrates actual
unit sales of shatter-resistant lamps that achieve
levels that are at least 100 percent higher than
modeled unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for shatter-
resistant lamps.
``(ii) Backstop requirement.--If the Secretary
fails to complete an accelerated rulemaking in
accordance with clause (i)(II), effective
beginning 1 year after

[[Page 1584]]
121 STAT. 1584

the date of issuance of the finding under clause
(i)(I), the Secretary shall impose--
``(I) a maximum wattage limitation
of 40 watts on shatter resistant lamps;
and
``(II) a requirement that those
lamps be sold at retail only in a
package containing 1 lamp.
``(I) Rulemakings before january 1, 2025.--
``(i) In general.--Except as provided in
clause (ii), if the Secretary issues a final rule
prior to January 1, 2025, establishing an energy
conservation standard for any of the 5 types of
lamps for which data collection is required under
any of subparagraphs (D) through (G), the
requirement to collect and model data for that
type of lamp shall terminate unless, as part of
the rulemaking, the Secretary determines that
continued tracking is necessary.
``(ii) Backstop requirement.--If the Secretary
imposes a backstop requirement as a result of a
failure to complete an accelerated rulemaking in
accordance with clause (i)(II) of any of
subparagraphs (D) through (G), the requirement to
collect and model data for the applicable type of
lamp shall continue for an additional 2 years
after the effective date of the backstop
requirement.''.

(b) Consumer Education and Lamp Labeling.--Section 324(a)(2)(C) of
the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)(C)) is
amended by adding at the end the following:
``(iii) Rulemaking
to [NOTE: Deadlines. consider effectiveness of
lamp labeling.--
``(I) In general.--Not later than 1
year after the date of enactment of this
clause, the Commission shall initiate a
rulemaking to consider--
``(aa) the effectiveness of
current lamp labeling for power
levels or watts, light output or
lumens, and lamp lifetime; and
``(bb) alternative labeling
approaches that will help
consumers to understand new
high-efficiency lamp products
and to base the purchase
decisions of the consumers on
the most appropriate source that
meets the requirements of the
consumers for lighting level,
light quality, lamp lifetime,
and total lifecycle cost.
``(II) Completion.--The Commission
shall--
``(aa) complete the
rulemaking not later than the
date that is 30 months after the
date of enactment of this
clause; and
``(bb) consider reopening
the rulemaking not later than
180 days before the effective
dates of the standards for
general service incandescent
lamps established under section
325(i)(1)(A), if the Commission
determines that further labeling
changes are needed to help
consumers understand lamp
alternatives.''.

(c) Market [NOTE: 42 USC 6294 note. Assessments and Consumer
Awareness Program.--

[[Page 1585]]
121 STAT. 1585

(1) In general.--In cooperation with the Administrator of
the Environmental Protection Agency, the Secretary of Commerce,
the Federal Trade Commission, lighting and retail industry
associations, energy efficiency organizations, and any other
entities that the Secretary of Energy determines to be
appropriate, the Secretary of Energy shall--
(A) conduct an annual assessment of the market for
general service lamps and compact fluorescent lamps--
(i) to identify trends in the market shares of
lamp types, efficiencies, and light output levels
purchased by residential and nonresidential
consumers; and
(ii) to better understand the degree to which
consumer decisionmaking is based on lamp power
levels or watts, light output or lumens, lamp
lifetime, and other factors, including information
required on labels mandated by the Federal Trade
Commission;
(B) provide the results of the market assessment to
the Federal Trade Commission for consideration in the
rulemaking described in section 324(a)(2)(C)(iii) of the
Energy Policy and Conservation Act (42 U.S.C.
6294(a)(2)(C)(iii)); and
(C) in cooperation with industry trade associations,
lighting industry members, utilities, and other
interested parties, carry out a proactive national
program of consumer awareness, information, and
education that broadly uses the media and other
effective communication techniques over an extended
period of time to help consumers understand the lamp
labels and make energy-efficient lighting choices that
meet the needs of consumers.
(2) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2009 through 2012.

(d) General Rule of Preemption for Energy Conservation Standards
Before Federal Standard Becomes Effective for a Product.--Section
327(b)(1) of the Energy Policy and Conservation Act (42 U.S.C.
6297(b)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by inserting ``or'' after the semicolon at the end; and
(3) by adding at the end the following:
``(B) [NOTE: California. Nevada. in the case of any
portion of any regulation that establishes requirements for
general service incandescent lamps, intermediate base
incandescent lamps, or candelabra base lamps, was enacted or
adopted by the State of California or Nevada before December 4,
2007, except that--
``(i) the regulation adopted by the California
Energy Commission with an effective date of January 1,
2008, shall only be effective until the effective date
of the Federal standard for the applicable lamp category
under subparagraphs (A), (B), and (C) of section
325(i)(1);
``(ii) the States of California and Nevada may, at
any time, modify or adopt a State standard for general
service lamps to conform with Federal standards with
effective dates no earlier than 12 months prior to the
Federal effective dates prescribed under subparagraphs
(A), (B), and (C) of section 325(i)(1), at which time
any prior regulations adopted by the State of California
or Nevada shall no longer be effective; and

[[Page 1586]]
121 STAT. 1586

``(iii) all other States may, at any time, modify or
adopt a State standard for general service lamps to
conform with Federal standards and effective dates.''.

(e) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer, distributor, retailer, or
private labeler to distribute in commerce an adapter that--
``(A) is designed to allow an incandescent lamp that
does not have a medium screw base to be installed into a
fixture or lampholder with a medium screw base socket;
and
``(B) is capable of being operated at a voltage
range at least partially within 110 and 130 volts.''.

(f) Enforcement.--Section 334 of the Energy Policy and Conservation
Act (42 U.S.C. 6304) is amended by inserting after the second sentence
the following: ``Any such action to restrain any person from
distributing in commerce a general service incandescent lamp that does
not comply with the applicable standard established under section 325(i)
or an adapter prohibited under section 332(a)(6) may also be brought by
the attorney general of a State in the name of the State.''.
(g) Research [NOTE: 42 USC 6295 note. and Development Program.--
(1) In general.--The Secretary may carry out a lighting
technology research and development program--
(A) to support the research, development,
demonstration, and commercial application of lamps and
related technologies sold, offered for sale, or
otherwise made available in the United States; and
(B) to assist manufacturers of general service lamps
in the manufacturing of general service lamps that, at a
minimum, achieve the wattage requirements imposed as a
result of the amendments made by subsection (a).
(2) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2008 through 2013.
(3) Termination of authority.--The program under this
subsection shall terminate on September 30, 2015.

(h) Reports to Congress.--
(1) Report on mercury use and release.--Not later than 1
year after the date of enactment of this Act, the Secretary, in
cooperation with the Administrator of the Environmental
Protection Agency, shall submit to Congress a report describing
recommendations relating to the means by which the Federal
Government may reduce or prevent the release of mercury during
the manufacture, transportation, storage, or disposal of light
bulbs.
(2) Report on rulemaking schedule.--Beginning on July 1,
2013, and semiannually through July 1, 2016, the Secretary shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on--
(A) whether the Secretary will meet the deadlines
for the rulemakings required under this section;

[[Page 1587]]
121 STAT. 1587

(B) a description of any impediments to meeting the
deadlines; and
(C) a specific plan to remedy any failures,
including recommendations for additional legislation or
resources.
(3) National academy review.--
(A) In general.--Not later than December 31, 2009,
the Secretary shall enter into an arrangement with the
National Academy of Sciences to provide a report by
December 31, 2013, and an updated report by July 31,
2015. The report should include--
(i) the status of advanced solid state
lighting research, development, demonstration and
commercialization;
(ii) the impact on the types of lighting
available to consumers of an energy conservation
standard requiring a minimum of 45 lumens per watt
for general service lighting effective in 2020;
and
(iii) the time frame for the commercialization
of lighting that could replace current
incandescent and halogen incandescent lamp
technology and any other new technologies
developed to meet the minimum standards required
under subsection (a)(3) of this section.
(B) Reports.--The reports shall be transmitted to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate.

SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.

(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) (as amended by section 316(c)(1)(D)) is amended--
(1) in paragraph (30)(C)(ii)--
(A) in the matter preceding subclause (I)--
(i) by striking ``or similar bulb shapes
(excluding ER or BR)'' and inserting ``ER, BR,
BPAR, or similar bulb shapes''; and
(ii) by striking ``2.75'' and inserting
``2.25''; and
(B) by striking ``is either--'' and all that follows
through subclause (II) and inserting ``has a rated
wattage that is 40 watts or higher''; and
(2) by adding at the end the following:
``(54) BPAR incandescent reflector lamp.--The term `BPAR
incandescent reflector lamp' means a reflector lamp as shown in
figure C78.21-278 on page 32 of ANSI C78.21-2003.
``(55) BR incandescent reflector lamp; br30; br40.--
``(A) BR incandescent reflector lamp.--The term `BR
incandescent reflector lamp' means a reflector lamp that
has--
``(i) a bulged section below the major
diameter of the bulb and above the approximate
baseline of the bulb, as shown in figure 1 (RB) on
page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code of
Federal Regulations (as in effect on the date of
enactment of this paragraph); and

[[Page 1588]]
121 STAT. 1588

``(ii) a finished size and shape shown in ANSI
C78.21-1989, including the referenced reflective
characteristics in part 7 of ANSI C78.21-1989,
incorporated by reference in section 430.22 of
title 10, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph).
``(B) BR30.--The term `BR30' means a BR incandescent
reflector lamp with a diameter of 30/8ths of an inch.
``(C) BR40.--The term `BR40' means a BR incandescent
reflector lamp with a diameter of 40/8ths of an inch.
``(56) ER incandescent reflector lamp; er30; er40.--
``(A) ER incandescent reflector lamp.--The term `ER
incandescent reflector lamp' means a reflector lamp that
has--
``(i) an elliptical section below the major
diameter of the bulb and above the approximate
baseline of the bulb, as shown in figure 1 (RE) on
page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code of
Federal Regulations (as in effect on the date of
enactment of this paragraph); and
``(ii) a finished size and shape shown in ANSI
C78.21-1989, incorporated by reference in section
430.22 of title 10, Code of Federal Regulations
(as in effect on the date of enactment of this
paragraph).
``(B) ER30.--The term `ER30' means an ER
incandescent reflector lamp with a diameter of 30/8ths
of an inch.
``(C) ER40.--The term `ER40' means an ER
incandescent reflector lamp with a diameter of 40/8ths
of an inch.
``(57) R20 incandescent reflector lamp.--The term `R20
incandescent reflector lamp' means a reflector lamp that has a
face diameter of approximately 2.5 inches, as shown in figure
1(R) on page 7 of ANSI C79.1-1994.''.

(b) Standards for Fluorescent Lamps and Incandescent Reflector
Lamps.--Section 325(i) of the Energy Policy and Conservation Act (42
U.S.C. 6995(i)) [NOTE: 42 USC 6295. is amended by striking paragraph
(1) and inserting the following:
``(1) Standards.--
``(A) Definition of effective date.--In this
paragraph (other than subparagraph (D)), the term
`effective date' means, with respect to each type of
lamp specified in a table contained in subparagraph (B),
the last day of the period of months corresponding to
that type of lamp (as specified in the table) that
follows October 24, 1992.
``(B) Minimum standards.--Each of the following
general service fluorescent lamps and incandescent
reflector lamps manufactured after the effective date
specified in the tables contained in this paragraph
shall meet or exceed the following lamp efficacy and CRI
standards:


``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
35 W               45                    75.0                    36

[[Page 1589]]
121 STAT. 1589


2-foot U-shaped................        >35 W              69                    68.0                    36
35 W               45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------



``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage         Minimum Average Lamp      (Period of
Efficacy (LPW)           Months)
------------------------------------------------------------------------
40-50.......................             10.5                  36
51-66.......................             11.0                  36
67-85.......................             12.5                  36
86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------


``(C) Exemptions.--The standards specified in
subparagraph (B) shall not apply to the following types
of incandescent reflector lamps:
``(i) Lamps rated at 50 watts or less that are
ER30, BR30, BR40, or ER40 lamps.
``(ii) Lamps rated at 65 watts that are BR30,
BR40, or ER40 lamps.
``(iii) R20 incandescent reflector lamps rated
45 watts or less.
``(D) Effective dates.--
``(i) ER, br, and bpar lamps.--The standards
specified in subparagraph (B) shall apply with
respect to ER incandescent reflector lamps, BR
incandescent reflector lamps, BPAR incandescent
reflector lamps, and similar bulb shapes on and
after January 1, 2008.
``(ii) Lamps between 2.25-2.75 inches in
diameter.--The standards specified in subparagraph
(B) shall apply with respect to incandescent
reflector lamps with a diameter of more than 2.25
inches, but not more than 2.75 inches, on and
after the later of January 1, 2008, or the date
that is 180 days after the date of enactment of
the Energy Independence and Security Act of
2007.''.

SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY SYSTEMS.

(a) Estimate of Energy Performance in Prospectus.--Section 3307(b)
of title 40, United States Code, is amended--
(1) by striking ``and'' at the end of paragraph (5);
(2) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(3) by inserting after paragraph (6) the following:

[[Page 1590]]
121 STAT. 1590

``(7) with respect to any prospectus for the construction,
alteration, or acquisition of any building or space to be
leased, an estimate of the future energy performance of the
building or space and a specific description of the use of
energy efficient and renewable energy systems, including
photovoltaic systems, in carrying out the project.''.

(b) Minimum Performance Requirements for Leased Space.--Section 3307
of such title is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:

``(f) Minimum Performance Requirements for Leased Space.--With
respect to space to be leased, the Administrator shall include, to the
maximum extent practicable, minimum performance requirements requiring
energy efficiency and the use of renewable energy.''.
(c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
(1) In general.--Chapter 33 of such title is amended--
(A) by redesignating sections 3313, 3314, and 3315
as sections 3314, 3315, and 3316, respectively; and
(B) by inserting after section 3312 the following:

``Sec. 3313. Use of energy efficient lighting fixtures and bulbs

``(a) Construction, Alteration, and Acquisition of Public
Buildings.--Each public building constructed, altered, or acquired by
the Administrator of General Services shall be equipped, to the maximum
extent feasible as determined by the Administrator, with lighting
fixtures and bulbs that are energy efficient.
``(b) Maintenance of Public Buildings.--Each lighting fixture or
bulb that is replaced by the Administrator in the normal course of
maintenance of public buildings shall be replaced, to the maximum extent
feasible, with a lighting fixture or bulb that is energy efficient.
``(c) Considerations.--In making a determination under this section
concerning the feasibility of installing a lighting fixture or bulb that
is energy efficient, the Administrator shall consider--
``(1) the life-cycle cost effectiveness of the fixture or
bulb;
``(2) the compatibility of the fixture or bulb with existing
equipment;
``(3) whether use of the fixture or bulb could result in
interference with productivity;
``(4) the aesthetics relating to use of the fixture or bulb;
and
``(5) such other factors as the Administrator determines
appropriate.

``(d) Energy Star.--A lighting fixture or bulb shall be treated as
being energy efficient for purposes of this section if--
``(1) the fixture or bulb is certified under the Energy Star
program established by section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a);
``(2) in the case of all light-emitting diode (LED)
luminaires, lamps, and systems whose efficacy (lumens per watt)
and Color Rendering Index (CRI) meet the Department of Energy
requirements for minimum luminaire efficacy and CRI for the
Energy Star certification, as verified by an independent third-
party testing laboratory that the Administrator and the
Secretary

[[Page 1591]]
121 STAT. 1591

of Energy determine conducts its tests according to the
procedures and recommendations of the Illuminating Engineering
Society of North America, even if the luminaires, lamps, and
systems have not received such certification; or
``(3) the Administrator and the Secretary of Energy have
otherwise determined that the fixture or bulb is energy
efficient.

``(e) Additional Energy Efficient Lighting Designations.--The
Administrator of the Environmental Protection Agency and the Secretary
of Energy shall give priority to establishing Energy Star performance
criteria or Federal Energy Management Program designations for
additional lighting product categories that are appropriate for use in
public buildings.
``(f) Guidelines.--The Administrator shall develop guidelines for
the use of energy efficient lighting technologies that contain mercury
in child care centers in public buildings.
``(g) Applicability of Buy American Act.--Acquisitions carried out
pursuant to this section shall be subject to the requirements of the Buy
American Act (41 U.S.C. 10c et seq.).
``(h) Effective Date.--The requirements of subsections (a) and (b)
shall take effect 1 year after the date of enactment of this
subsection.''.
(2) Clerical amendment.--The analysis for such chapter is
amended by striking the items relating to sections 3313, 3314,
and 3315 and inserting the following:

``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.

(d) Evaluation Factor.--Section 3310 of such title is amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) shall include in the solicitation for any lease
requiring a prospectus under section 3307 an evaluation factor
considering the extent to which the offeror will promote energy
efficiency and the use of renewable energy;''.

SEC. 324. METAL HALIDE LAMP FIXTURES.

(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) (as amended by section 322(a)(2)) is amended by
adding at the end the following:
``(58) Ballast.--The term `ballast' means a device used with
an electric discharge lamp to obtain necessary circuit
conditions (voltage, current, and waveform) for starting and
operating.
``(59) Ballast efficiency.--
``(A) In general.--The term `ballast efficiency'
means, in the case of a high intensity discharge
fixture, the efficiency of a lamp and ballast
combination, expressed as a percentage, and calculated
in accordance with the following formula: Efficiency =
Pout/Pin.
``(B) Efficiency formula.--For the purpose of
subparagraph (A)--
``(i) Pout shall equal the measured
operating lamp wattage;

[[Page 1592]]
121 STAT. 1592

``(ii) Pin shall equal the measured
operating input wattage;
``(iii) the lamp, and the capacitor when the
capacitor is provided, shall constitute a nominal
system in accordance with the ANSI Standard
C78.43-2004;
``(iv) for ballasts with a frequency of 60 Hz,
Pin and Pout shall be
measured after lamps have been stabilized
according to section 4.4 of ANSI Standard C82.6-
2005 using a wattmeter with accuracy specified in
section 4.5 of ANSI Standard C82.6-2005; and
``(v) for ballasts with a frequency greater
than 60 Hz, Pin and Pout
shall have a basic accuracy of   0.5
percent at the higher of--
``(I) 3 times the output operating
frequency of the ballast; or
``(II) 2 kHz for ballast with a
frequency greater than 60 Hz.
``(C) Modification.--The Secretary may, by rule,
modify the definition of `ballast efficiency' if the
Secretary determines that the modification is necessary
or appropriate to carry out the purposes of this Act.
``(60) Electronic ballast.--The term `electronic ballast'
means a device that uses semiconductors as the primary means to
control lamp starting and operation.
``(61) General lighting application.--The term `general
lighting application' means lighting that provides an interior
or exterior area with overall illumination.
``(62) Metal halide ballast.--The term `metal halide
ballast' means a ballast used to start and operate metal halide
lamps.
``(63) Metal halide lamp.--The term `metal halide lamp'
means a high intensity discharge lamp in which the major portion
of the light is produced by radiation of metal halides and their
products of dissociation, possibly in combination with metallic
vapors.
``(64) Metal halide lamp fixture.--The term `metal halide
lamp fixture' means a light fixture for general lighting
application designed to be operated with a metal halide lamp and
a ballast for a metal halide lamp.
``(65) Probe-start metal halide ballast.--The term `probe-
start metal halide ballast' means a ballast that--
``(A) starts a probe-start metal halide lamp that
contains a third starting electrode (probe) in the arc
tube; and
``(B) does not generally contain an igniter but
instead starts lamps with high ballast open circuit
voltage.
``(66) Pulse-start metal halide ballast.--
``(A) In general.--The term `pulse-start metal
halide ballast' means an electronic or electromagnetic
ballast that starts a pulse-start metal halide lamp with
high voltage pulses.
``(B) Starting process.--For the purpose of
subparagraph (A)--
``(i) lamps shall be started by first
providing a high voltage pulse for ionization of
the gas to produce a glow discharge; and

[[Page 1593]]
121 STAT. 1593

``(ii) to complete the starting process, power
shall be provided by the ballast to sustain the
discharge through the glow-to-arc transition.''.

(b) Coverage.--Section 322(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6292(a)) is amended--
(1) by redesignating paragraph (19) as paragraph (20); and
(2) by inserting after paragraph (18) the following:
``(19) Metal halide lamp fixtures.''.

(c) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) (as amended by section 301(b)) is
amended by adding at the end the following:
``(18) Metal halide lamp ballasts.--Test procedures for
metal halide lamp ballasts shall be based on ANSI Standard
C82.6-2005, entitled `Ballasts for High Intensity Discharge
Lamps--Method of Measurement'.''.

(d) Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
(1) by redesignating subparagraphs (C) through (G) as
subparagraphs (D) through (H), respectively; and
(2) by inserting after subparagraph (B) the following:
``(C) Metal halide lamp fixtures.--
``(i) In general.--
The [NOTE: Regulations. Commission shall issue
labeling rules under this section applicable to
the covered product specified in section
322(a)(19) and to which standards are applicable
under section 325.
``(ii) Labeling.--
The [NOTE: Deadlines. rules shall provide that
the labeling of any metal halide lamp fixture
manufactured on or after the later of January 1,
2009, or the date that is 270 days after the date
of enactment of this subparagraph, shall indicate
conspicuously, in a manner prescribed by the
Commission under subsection (b) by July 1, 2008, a
capital letter `E' printed within a circle on the
packaging of the fixture, and on the ballast
contained in the fixture.''.

(e) Standards.--Section 325 of the Energy Policy and Conservation
Act (42 U.S.C. 6295) (as amended by section 310) is amended--
(1) by redesignating subsection (hh) as subsection (ii);
(2) by inserting after subsection (gg) the following:

``(hh) Metal Halide Lamp Fixtures.--
``(1) Standards.--
``(A) In general.--Subject to subparagraphs (B) and
(C), metal halide lamp fixtures designed to be operated
with lamps rated greater than or equal to 150 watts but
less than or equal to 500 watts shall contain--
``(i) a pulse-start metal halide ballast with
a minimum ballast efficiency of 88 percent;
``(ii) a magnetic probe-start ballast with a
minimum ballast efficiency of 94 percent; or
``(iii) a nonpulse-start electronic ballast
with--
``(I) a minimum ballast efficiency
of 92 percent for wattages greater than
250 watts; and
``(II) a minimum ballast efficiency
of 90 percent for wattages less than or
equal to 250 watts.
``(B) Exclusions.--The standards established under
subparagraph (A) shall not apply to--

[[Page 1594]]
121 STAT. 1594

``(i) fixtures with regulated lag ballasts;
``(ii) fixtures that use electronic ballasts
that operate at 480 volts; or
``(iii) fixtures that--
``(I) are rated only for 150 watt
lamps;
``(II) are rated for use in wet
locations, as specified by the National
Electrical Code 2002, section 410.4(A);
and
``(III) contain a ballast that is
rated to operate at ambient air
temperatures above 50C, as specified by
UL 1029-2001.
``(C) Application.--The standards established under
subparagraph (A) shall apply to metal halide lamp
fixtures manufactured on or after the later of--
``(i) January 1, 2009; or
``(ii) the date that is 270 days after the
date of enactment of this subsection.
``(2) Final rule by january 1, 2012.--
``(A) In general.--Not [NOTE: Publication. later
than January 1, 2012, the Secretary shall publish a
final rule to determine whether the standards
established under paragraph (1) should be amended.
``(B) Administration.--
The [NOTE: Applicability. final rule shall--
``(i) contain any amended standard; and
``(ii) apply to products manufactured on or
after January 1, 2015.
``(3) Final rule by january 1, 2019.--
``(A) In general.--Not [NOTE: Publication. later
than January 1, 2019, the Secretary shall publish a
final rule to determine whether the standards then in
effect should be amended.
``(B) Administration.--
The [NOTE: Applicability. final rule shall--
``(i) contain any amended standards; and
``(ii) apply to products manufactured after
January 1, 2022.
``(4) Design and performance requirements.--Notwithstanding
any other provision of law, any standard established pursuant to
this subsection may contain both design and performance
requirements.''; and
(3) in paragraph (2) of subsection (ii) (as redesignated by
paragraph (2)), by striking ``(gg)'' each place it appears and
inserting ``(hh)''.

(f) Effect on Other Law.--Section 327(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(c)) is amended--
(1) in paragraph (8)(B), by striking the period at the end
and inserting ``; and''; and
(2) by adding at the end the following:
``(9) is a regulation concerning metal halide lamp fixtures
adopted by the California Energy Commission on or before January
1, 2011, except that--
``(A) [NOTE: Deadlines. if the Secretary fails to
issue a final rule within 180 days after the deadlines
for rulemakings in section 325(hh), notwithstanding any
other provision of this section, preemption shall not
apply to a regulation concerning metal halide lamp
fixtures adopted by the California Energy Commission--

[[Page 1595]]
121 STAT. 1595

``(i) on or before July 1, 2015, if the
Secretary fails to meet the deadline specified in
section 325(hh)(2); or
``(ii) on or before July 1, 2022, if the
Secretary fails to meet the deadline specified in
section 325(hh)(3).''.

SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC PRODUCTS.

(a) In General.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) (as amended by section 324(d)) is
amended--
(1) in paragraph (2), by adding at the end the following:
``(I) Labeling requirements.--
``(i) In [NOTE: Deadline. general.--Subject
to clauses (ii) through (iv), not later than 18
months after the date of issuance of applicable
Department of Energy testing procedures, the
Commission, in consultation with the Secretary and
the Administrator of the Environmental Protection
Agency (acting through the Energy Star program),
shall, by regulation, prescribe labeling or other
disclosure requirements for the energy use of--
``(I) televisions;
``(II) personal computers;
``(III) cable or satellite set-top
boxes;
``(IV) stand-alone digital video
recorder boxes; and
``(V) personal computer monitors.
``(ii) Alternate testing procedures.--In the
absence of applicable testing procedures described
in clause (i) for products described in subclauses
(I) through (V) of that clause, the Commission
may, by regulation, prescribe labeling or other
disclosure requirements for a consumer product
category described in clause (i) if the
Commission--
``(I) identifies adequate non-
Department of Energy testing procedures
for those products; and
``(II) determines that labeling of,
or other disclosures relating to, those
products is likely to assist consumers
in making purchasing decisions.
``(iii) Deadline and requirements for
labeling.--
``(I) Deadline.--Not later than 18
months after the date of promulgation of
any requirements under clause (i) or
(ii), the Commission shall require
labeling of, or other disclosure
requirements for, electronic products
described in clause (i).
``(II) Requirements.--The
requirements prescribed under clause (i)
or (ii) may include specific
requirements for each electronic product
to be labeled with respect to the
placement, size, and content of Energy
Guide labels.
``(iv) Determination of feasibility.--Clause
(i) or (ii) shall not apply in any case in which
the Commission determines that labeling in
accordance with this subsection--

[[Page 1596]]
121 STAT. 1596

``(I) is not technologically or
economically feasible; or
``(II) is not likely to assist
consumers in making purchasing
decisions.''; and
(2) by adding at the end the following:
``(6) Authority to include additional product categories.--
The Commission may, by regulation, require labeling or other
disclosures in accordance with this subsection for any consumer
product not specified in this subsection or section 322 if the
Commission determines that labeling for the product is likely to
assist consumers in making purchasing decisions.''.

(b) Content of Label.--Section 324(c) of the Energy Policy and
Conservation Act [NOTE: 42 USC 6294. (42 U.S.C. 6924(c)) is amended
by adding at the end the following:
``(9) Discretionary application.--The Commission may apply
paragraphs (1), (2), (3), (5), and (6) of this subsection to the
labeling of any product covered by paragraph (2)(I) or (6) of
subsection (a).''.

TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

SEC. 401. [NOTE: 42 USC 17061. DEFINITIONS.

In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Advisory committee.--The term ``Advisory Committee''
means the Green Building Advisory Committee established under
section 484.
(3) Commercial director.--The term ``Commercial Director''
means the individual appointed to the position established under
section 421.
(4) Consortium.--The term ``Consortium'' means the High-
Performance Green Building Partnership Consortium created in
response to section 436(c)(1) to represent the private sector in
a public-private partnership to promote high-performance green
buildings and zero-net-energy commercial buildings.
(5) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational
cost savings by ensuring an installed consumption
of not more than 1 watt per square foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law 95-619
(42 U.S.C. 8259b);
(II) Federal acquisition regulation
23-203; and
(III) is at least as energy-
conserving as required by other
provisions of this Act, including the
requirements of this title and title III
which shall be applicable to the extent
that they would achieve greater energy
savings than provided under clause (i)
or this clause.
(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;

[[Page 1597]]
121 STAT. 1597

(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-effective
lighting technologies.
(6) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a technology
or practice that--
(A) will result in substantial operational cost
savings by reducing electricity or fossil fuel
consumption, water, or other utility costs, including
use of geothermal heat pumps;
(B) complies with the provisions of section 553 of
Public Law 95-619 (42 U.S.C. 8259b) and Federal
acquisition regulation 23-203; and
(C) is at least as energy and water conserving as
required under this title, including sections 431
through 435, and title V, including sections 511 through
525, which shall be applicable to the extent that they
are more stringent or require greater energy or water
savings than required by this section.
(7) Federal director.--The term ``Federal Director'' means
the individual appointed to the position established under
section 436(a).
(8) Federal facility.--The term ``Federal facility'' means
any building that is constructed, renovated, leased, or
purchased in part or in whole for use by the Federal Government.
(9) Operational cost savings.--
(A) In general.--The term ``operational cost
savings'' means a reduction in end-use operational costs
through the application of cost-effective technologies
and practices or geothermal heat pumps, including a
reduction in electricity consumption relative to
consumption by the same customer or at the same facility
in a given year, as defined in guidelines promulgated by
the Administrator pursuant to section 329(b) of the
Clean Air Act, that achieves cost savings sufficient to
pay the incremental additional costs of using cost-
effective technologies and practices including
geothermal heat pumps by not later than the later of the
date established under sections 431 through 434, or--
(i) for cost-effective technologies and
practices, the date that is 5 years after the date
of installation; and
(ii) for geothermal heat pumps, as soon as
practical after the date of installation of the
applicable geothermal heat pump.
(B) Inclusions.--The term ``operational cost
savings'' includes savings achieved at a facility as a
result of--
(i) the installation or use of cost-effective
technologies and practices; or
(ii) the planting of vegetation that shades
the facility and reduces the heating, cooling, or
lighting needs of the facility.
(C) Exclusion.--The term ``operational cost
savings'' does not include savings from measures that
would likely

[[Page 1598]]
121 STAT. 1598

be adopted in the absence of cost-effective technology
and practices programs, as determined by the
Administrator.
(10) Geothermal heat pump.--The term ``geothermal heat
pump'' means any heating or air conditioning technology that--
(A) uses the ground or ground water as a thermal
energy source to heat, or as a thermal energy sink to
cool, a building; and
(B) meets the requirements of the Energy Star
program of the Environmental Protection Agency
applicable to geothermal heat pumps on the date of
purchase of the technology.
(11) GSA facility.--
(A) In general.--The term ``GSA facility'' means any
building, structure, or facility, in whole or in part
(including the associated support systems of the
building, structure, or facility) that--
(i) is constructed (including facilities
constructed for lease), renovated, or purchased,
in whole or in part, by the Administrator for use
by the Federal Government; or
(ii) is leased, in whole or in part, by the
Administrator for use by the Federal Government--
(I) except as provided in subclause
(II), for a term of not less than 5
years; or
(II) for a term of less than 5
years, if the Administrator determines
that use of cost-effective technologies
and practices would result in the
payback of expenses.
(B) Inclusion.--The term ``GSA facility'' includes
any group of buildings, structures, or facilities
described in subparagraph (A) (including the associated
energy-consuming support systems of the buildings,
structures, and facilities).
(C) Exemption.--The Administrator may exempt from
the definition of ``GSA facility'' under this paragraph
a building, structure, or facility that meets the
requirements of section 543(c) of Public Law 95-619 (42
U.S.C. 8253(c)).
(12) High-performance building.--The term ``high-performance
building'' means a building that integrates and optimizes on a
life cycle basis all major high performance attributes,
including energy conservation, environment, safety, security,
durability, accessibility, cost-benefit, productivity,
sustainability, functionality, and operational considerations.
(13) High-performance green building.--The term ``high-
performance green building'' means a high-performance building
that, during its life-cycle, as compared with similar buildings
(as measured by Commercial Buildings Energy Consumption Survey
or Residential Energy Consumption Survey data from the Energy
Information Agency)--
(A) reduces energy, water, and material resource
use;
(B) improves indoor environmental quality, including
reducing indoor pollution, improving thermal comfort,
and improving lighting and acoustic environments that
affect occupant health and productivity;
(C) reduces negative impacts on the environment
throughout the life-cycle of the building, including air
and water pollution and waste generation;

[[Page 1599]]
121 STAT. 1599

(D) increases the use of environmentally preferable
products, including biobased, recycled content, and
nontoxic products with lower life-cycle impacts;
(E) increases reuse and recycling opportunities;
(F) integrates systems in the building;
(G) reduces the environmental and energy impacts of
transportation through building location and site design
that support a full range of transportation choices for
users of the building; and
(H) considers indoor and outdoor effects of the
building on human health and the environment,
including--
(i) improvements in worker productivity;
(ii) the life-cycle impacts of building
materials and operations; and
(iii) other factors that the Federal Director
or the Commercial Director consider to be
appropriate.
(14) Life-cycle.--The term ``life-cycle'', with respect to a
high-performance green building, means all stages of the useful
life of the building (including components, equipment, systems,
and controls of the building) beginning at conception of a high-
performance green building project and continuing through site
selection, design, construction, landscaping, commissioning,
operation, maintenance, renovation, deconstruction or
demolition, removal, and recycling of the high-performance green
building.
(15) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for measuring
the environmental performance of a product or service over the
life of the product or service, beginning at raw materials
acquisition and continuing through manufacturing,
transportation, installation, use, reuse, and end-of-life waste
management.
(16) Life-cycle costing.--The term ``life-cycle costing'',
with respect to a high-performance green building, means a
technique of economic evaluation that--
(A) sums, over a given study period, the costs of
initial investment (less resale value), replacements,
operations (including energy use), and maintenance and
repair of an investment decision; and
(B) is expressed--
(i) in present value terms, in the case of a
study period equivalent to the longest useful life
of the building, determined by taking into
consideration the typical life of such a building
in the area in which the building is to be
located; or
(ii) in annual value terms, in the case of any
other study period.
(17) Office of commercial high-performance green
buildings.--The term ``Office of Commercial High-Performance
Green Buildings'' means the Office of Commercial High-
Performance Green Buildings established under section 421(a).
(18) Office of federal high-performance green buildings.--
The term ``Office of Federal High-Performance Green Buildings''
means the Office of Federal High-Performance Green Buildings
established under section 436(a).
(19) Practices.--The term ``practices'' means design,
financing, permitting, construction, commissioning, operation

[[Page 1600]]
121 STAT. 1600

and maintenance, and other practices that contribute to
achieving zero-net-energy buildings or facilities.
(20) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a commercial building
that is designed, constructed, and operated to--
(A) require a greatly reduced quantity of energy to
operate;
(B) meet the balance of energy needs from sources of
energy that do not produce greenhouse gases;
(C) therefore result in no net emissions of
greenhouse gases; and
(D) be economically viable.

Subtitle A--Residential Building Efficiency

SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

(a) In General.--Section 422 of the Energy Conservation and
Production Act (42 U.S.C. 6872) is amended by striking ``appropriated
$500,000,000 for fiscal year 2006, $600,000,000 for fiscal year 2007,
and $700,000,000 for fiscal year 2008'' and inserting ``appropriated--
``(1) $750,000,000 for fiscal year 2008;
``(2) $900,000,000 for fiscal year 2009;
``(3) $1,050,000,000 for fiscal year 2010;
``(4) $1,200,000,000 for fiscal year 2011; and
``(5) $1,400,000,000 for fiscal year 2012.''.

(b) Sustainable [NOTE: 42 USC 6872 note. Energy Resources for
Consumers Grants.--
(1) In general.--The Secretary may make funding available to
local weatherization agencies from amounts authorized under the
amendment made by subsection (a) to expand the weatherization
assistance program for residential buildings to include
materials, benefits, and renewable and domestic energy
technologies not covered by the program (as of the date of
enactment of this Act), if the State weatherization grantee
certifies that the applicant has the capacity to carry out the
proposed activities and that the grantee will include the
project in the financial oversight of the grantee of the
weatherization assistance program.
(2) Priority.--In selecting grant recipients under this
subsection, the Secretary shall give priority to--
(A) the expected effectiveness and benefits of the
proposed project to low- and moderate-income energy
consumers;
(B) the potential for replication of successful
results;
(C) the impact on the health and safety and energy
costs of consumers served; and
(D) the extent of partnerships with other public and
private entities that contribute to the resources and
implementation of the program, including financial
partnerships.
(3) Funding.--
(A) In general.--Except as provided in paragraph
(2), the amount of funds used for projects described in
paragraph (1) may equal up to 2 percent of the amount of

[[Page 1601]]
121 STAT. 1601

funds made available for any fiscal year under section
422 of the Energy Conservation and Production Act (42
U.S.C. 6872).
(B) Exception.--No funds may be used for sustainable
energy resources for consumers grants for a fiscal year
under this subsection if the amount of funds made
available for the fiscal year to carry out the
Weatherization Assistance Program for Low-Income Persons
established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.)
is less than $275,000,000.

(c) Definition of State.--Section 412 of the Energy Conservation and
Production Act (42 U.S.C. 6862) is amended by striking paragraph (8) and
inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the
United States.''.

SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.

(a) In General.--Not [NOTE: Deadline. later than 120 days after
the date of enactment of this Act, the Secretary shall conduct, and
submit to Congress a report on, a study regarding the rebate programs
established under sections 124 and 206(c) of the Energy Policy Act of
2005 (42 U.S.C. 15821, 15853).

(b) Components.--In conducting the study, the Secretary shall--
(1) develop a plan for how the rebate programs would be
carried out if the programs were funded; and
(2) determine the minimum amount of funding the program
would need to receive in order to accomplish the goals of the
programs.

SEC. 413. [NOTE: 42 USC 17071. ENERGY CODE IMPROVEMENTS APPLICABLE TO
MANUFACTURED HOUSING.

(a) Establishment of Standards.--
(1) In [NOTE: Deadline. Regulations. general.--Not later
than 4 years after the date of enactment of this Act, the
Secretary shall by regulation establish standards for energy
efficiency in manufactured housing.
(2) Notice, comment, and consultation.--Standards described
in paragraph (1) shall be established after--
(A) notice and an opportunity for comment by
manufacturers of manufactured housing and other
interested parties; and
(B) consultation with the Secretary of Housing and
Urban Development, who may seek further counsel from the
Manufactured Housing Consensus Committee.

(b) Requirements.--
(1) International energy conservation code.--The energy
conservation standards established under this section shall be
based on the most recent version of the International Energy
Conservation Code (including supplements), except in cases in
which the Secretary finds that the code is not cost-effective,
or a more stringent standard would be more cost-effective, based
on the impact of the code on the purchase

[[Page 1602]]
121 STAT. 1602

price of manufactured housing and on total life-cycle
construction and operating costs.
(2) Considerations.--The energy conservation standards
established under this section may--
(A) take into consideration the design and factory
construction techniques of manufactured homes;
(B) be based on the climate zones established by the
Department of Housing and Urban Development rather than
the climate zones under the International Energy
Conservation Code; and
(C) provide for alternative practices that result in
net estimated energy consumption equal to or less than
the specified standards.
(3) Updating.--The [NOTE: Deadlines. energy conservation
standards established under this section shall be updated not
later than--
(A) 1 year after the date of enactment of this Act;
and
(B) 1 year after any revision to the International
Energy Conservation Code.

(c) Enforcement.--Any manufacturer of manufactured housing that
violates a provision of the regulations under subsection (a) is liable
to the United States for a civil penalty in an amount not exceeding 1
percent of the manufacturer's retail list price of the manufactured
housing.

Subtitle B--High-Performance Commercial Buildings

SEC. 421. [NOTE: 42 USC 17081. COMMERCIAL HIGH-PERFORMANCE GREEN
BUILDINGS.

(a) Director [NOTE: Appointment. of Commercial High-Performance
Green Buildings.--Notwithstanding any other provision of law, the
Secretary, acting through the Assistant Secretary of Energy Efficiency
and Renewable Energy, shall appoint a Director of Commercial High-
Performance Green Buildings to a position in the career-reserved Senior
Executive service, with the principal responsibility to--
(1) establish and manage the Office of Commercial High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.

(b) Qualifications.--The Commercial Director shall be an individual,
who by reason of professional background and experience, is specifically
qualified to carry out the duties required under this subtitle.
(c) Duties.--The Commercial Director shall, with respect to
development of high-performance green buildings and zero-energy
commercial buildings nationwide--
(1) coordinate the activities of the Office of Commercial
High-Performance Green Buildings with the activities of the
Office of Federal High-Performance Green Buildings;
(2) develop the legal predicates and agreements for,
negotiate, and establish one or more public-private partnerships
with the Consortium, members of the Consortium, and other
capable parties meeting the qualifications of the Consortium, to
further such development;
(3) represent the public and the Department in negotiating
and performing in accord with such public-private partnerships;

[[Page 1603]]
121 STAT. 1603

(4) use appropriated funds in an effective manner to
encourage the maximum investment of private funds to achieve
such development;
(5) promote research and development of high-performance
green buildings, consistent with section 423; and
(6) jointly establish with the Federal Director a national
high-performance green building clearinghouse in accordance with
section 423(1), which shall provide high-performance green
building information and disseminate research results through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance.

(d) Reporting.--The Commercial Director shall report directly to the
Assistant Secretary for Energy Efficiency and Renewable Energy, or to
other senior officials in a way that facilitates the integrated program
of this subtitle for both energy efficiency and renewable energy and
both technology development and technology deployment.
(e) Coordination.--The Commercial Director shall ensure full
coordination of high-performance green building information and
activities, including activities under this subtitle, within the Federal
Government by working with the General Services Administration and all
relevant agencies, including, at a minimum--
(1) the Environmental Protection Agency;
(2) the Office of the Federal Environmental Executive;
(3) the Office of Federal Procurement Policy;
(4) the Department of Energy, particularly the Federal
Energy Management Program;
(5) the Department of Health and Human Services;
(6) the Department of Housing and Urban Development;
(7) the Department of Defense;
(8) the National Institute of Standards and Technology;
(9) the Department of Transportation;
(10) the Office of Science Technology and Policy; and
(11) such nonprofit high-performance green building rating
and analysis entities as the Commercial Director determines can
offer support, expertise, and review services.

(f) High-Performance Green Building Partnership Consortium.--
(1) Recognition.--Not [NOTE: Deadline. later than 90 days
after the date of enactment of this Act, the Commercial Director
shall formally recognize one or more groups that qualify as a
high-performance green building partnership consortium.
(2) Representation to qualify.--To qualify under this
section, any consortium shall include representation from--
(A) the design professions, including national
associations of architects and of professional
engineers;
(B) the development, construction, financial, and
real estate industries;
(C) building owners and operators from the public
and private sectors;
(D) academic and research organizations, including
at least one national laboratory with extensive
commercial building energy expertise;
(E) building code agencies and organizations,
including a model energy code-setting organization;

[[Page 1604]]
121 STAT. 1604

(F) independent high-performance green building
associations or councils;
(G) experts in indoor air quality and environmental
factors;
(H) experts in intelligent buildings and integrated
building information systems;
(I) utility energy efficiency programs;
(J) manufacturers and providers of equipment and
techniques used in high-performance green buildings;
(K) public transportation industry experts; and
(L) nongovernmental energy efficiency organizations.
(3) Funding.--The Secretary may make payments to the
Consortium pursuant to the terms of a public-private partnership
for such activities of the Consortium undertaken under such a
partnership as described in this subtitle directly to the
Consortium or through one or more of its members.

(g) Report.--Not later than 2 years after the date of enactment of
this Act, and biennially thereafter, the Commercial Director, in
consultation with the Consortium, shall submit to Congress a report
that--
(1) describes the status of the high-performance green
building initiatives under this subtitle and other Federal
programs affecting commercial high-performance green buildings
in effect as of the date of the report, including--
(A) the extent to which the programs are being
carried out in accordance with this subtitle; and
(B) the status of funding requests and
appropriations for those programs; and
(2) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted promoting
high-performance green building (including the status of
implementation of those initiatives).

SEC. 422. [NOTE: 42 USC 17082. ZERO NET ENERGY COMMERCIAL BUILDINGS
INITIATIVE.

(a) Definitions.--In this section:
(1) Consortium.--The term ``consortium'' means a High-
Performance Green Building Consortium selected by the Commercial
Director.
(2) Initiative.--The term ``initiative'' means the Zero-Net-
Energy Commercial Buildings Initiative established under
subsection (b)(1).
(3) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a high-performance
commercial building that is designed, constructed, and
operated--
(A) to require a greatly reduced quantity of energy
to operate;
(B) to meet the balance of energy needs from sources
of energy that do not produce greenhouse gases;
(C) in a manner that will result in no net emissions
of greenhouse gases; and
(D) to be economically viable.

(b) Establishment.--
(1) In general.--The Commercial Director shall establish an
initiative, to be known as the ``Zero-Net-Energy Commercial
Buildings Initiative''--

[[Page 1605]]
121 STAT. 1605

(A) to reduce the quantity of energy consumed by
commercial buildings located in the United States; and
(B) to achieve the development of zero net energy
commercial buildings in the United States.
(2) Consortium.--
(A) In [NOTE: Deadline. general.--Not later than
180 days after the date of enactment of this Act, the
Commercial Director shall competitively select, and
enter into an agreement with, a consortium to develop
and carry out the initiative.
(B) Agreements.--In entering into an agreement with
a consortium under subparagraph (A), the Commercial
Director shall use the authority described in section
646(g) of the Department of Energy Organization Act (42
U.S.C. 7256(g)), to the maximum extent practicable.

(c) Goal of Initiative.--The goal of the initiative shall be to
develop and disseminate technologies, practices, and policies for the
development and establishment of zero net energy commercial buildings
for--
(1) any commercial building newly constructed in the United
States by 2030;
(2) 50 percent of the commercial building stock of the
United States by 2040; and
(3) all commercial buildings in the United States by 2050.

(d) Components.--In carrying out the initiative, the Commercial
Director, in consultation with the consortium, may--
(1) conduct research and development on building science,
design, materials, components, equipment and controls, operation
and other practices, integration, energy use measurement, and
benchmarking;
(2) conduct pilot programs and demonstration projects to
evaluate replicable approaches to achieving energy efficient
commercial buildings for a variety of building types in a
variety of climate zones;
(3) conduct deployment, dissemination, and technical
assistance activities to encourage widespread adoption of
technologies, practices, and policies to achieve energy
efficient commercial buildings;
(4) conduct other research, development, demonstration, and
deployment activities necessary to achieve each goal of the
initiative, as determined by the Commercial Director, in
consultation with the consortium;
(5) develop training materials and courses for building
professionals and trades on achieving cost-effective high-
performance energy efficient buildings;
(6) develop and disseminate public education materials to
share information on the benefits and cost-effectiveness of
high-performance energy efficient buildings;
(7) support code-setting organizations and State and local
governments in developing minimum performance standards in
building codes that recognize the ready availability of many
technologies utilized in high-performance energy efficient
buildings;
(8) develop strategies for overcoming the split incentives
between builders and purchasers, and landlords and tenants, to
ensure that energy efficiency and high-performance investments
are made that are cost-effective on a lifecycle basis; and

[[Page 1606]]
121 STAT. 1606

(9) develop improved means of measurement and verification
of energy savings and performance for public dissemination.

(e) Cost Sharing.--In carrying out this section, the Commercial
Director shall require cost sharing in accordance with section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352).
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $20,000,000 for fiscal year 2008;
(2) $50,000,000 for each of fiscal years 2009 and 2010;
(3) $100,000,000 for each of fiscal years 2011 and 2012; and
(4) $200,000,000 for each of fiscal years 2013 through 2018.

SEC. 423. [NOTE: 42 USC 17083. PUBLIC OUTREACH.

The Commercial Director and Federal Director, in coordination with
the Consortium, shall carry out public outreach to inform individuals
and entities of the information and services available governmentwide
by--
(1) establishing and maintaining a national high-performance
green building clearinghouse, including on the Internet, that--
(A) identifies existing similar efforts and
coordinates activities of common interest; and
(B) provides information relating to high-
performance green buildings, including hyperlinks to
Internet sites that describe the activities,
information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including
nongovernmental and nonprofit entities and
organizations); and
(iv) international organizations;
(2) identifying and recommending educational resources for
implementing high-performance green building practices,
including security and emergency benefits and practices;
(3) providing access to technical assistance, tools, and
resources for constructing high-performance green buildings,
particularly tools to conduct life-cycle costing and life-cycle
assessment;
(4) providing information on application processes for
certifying a high-performance green building, including
certification and commissioning;
(5) providing to the public, through the Commercial
Director, technical and research information or other forms of
assistance or advice that would be useful in planning and
constructing high-performance green buildings;
(6) using such additional methods as are determined by the
Commercial Director to be appropriate to conduct public
outreach;
(7) surveying existing research and studies relating to
high-performance green buildings; and
(8) coordinating activities of common interest.

[[Page 1607]]
121 STAT. 1607

Subtitle C--High-Performance Federal Buildings

SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.

Section 543(a)(1) of the National Energy Conservation Policy Act (42
U.S.C. 8253(a)(1)) is amended by striking the table and inserting the
following:

``Fiscal Year                 Percentage Reduction......................
2006                                                                  2
2007                                                                  4
2008                                                                  9
2009                                                                 12
2010                                                                 15
2011                                                                 18
2012                                                                 21
2013                                                                 24
2014                                                                 27
2015                                                              30.''.

SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL
BUILDINGS.

Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended by adding at the end the following:
``(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
``(1) Definitions.--In this subsection:
``(A) Commissioning.--The term `commissioning', with
respect to a facility, means a systematic process--
``(i) of ensuring, using appropriate
verification and documentation, during the period
beginning on the initial day of the design phase
of the facility and ending not earlier than 1 year
after the date of completion of construction of
the facility, that all facility systems perform
interactively in accordance with--
``(I) the design documentation and
intent of the facility; and
``(II) the operational needs of the
owner of the facility, including
preparation of operation personnel; and
``(ii) the primary goal of which is to ensure
fully functional systems that can be properly
operated and maintained during the useful life of
the facility.
``(B) Energy manager.--
``(i) In general.--The term `energy manager',
with respect to a facility, means the individual
who is responsible for--
``(I) ensuring compliance with this
subsection by the facility; and
``(II) reducing energy use at the
facility.
``(ii) Inclusions.--The term `energy manager'
may include--
``(I) a contractor of a facility;
``(II) a part-time employee of a
facility; and
``(III) an individual who is
responsible for multiple facilities.
``(C) Facility.--

[[Page 1608]]
121 STAT. 1608

``(i) In general.--The term `facility' means
any building, installation, structure, or other
property (including any applicable fixtures) owned
or operated by, or constructed or manufactured and
leased to, the Federal Government.
``(ii) Inclusions.--The term `facility'
includes--
``(I) a group of facilities at a
single location or multiple locations
managed as an integrated operation; and
``(II) contractor-operated
facilities owned by the Federal
Government.
``(iii) Exclusions.--The term `facility' does
not include any land or site for which the cost of
utilities is not paid by the Federal Government.
``(D) Life cycle cost-effective.--The term `life
cycle cost-effective', with respect to a measure, means
a measure, the estimated savings of which exceed the
estimated costs over the lifespan of the measure, as
determined in accordance with section 544.
``(E) Payback period.--
``(i) In general.--Subject to clause (ii), the
term `payback period', with respect to a measure,
means a value equal to the quotient obtained by
dividing--
``(I) the estimated initial
implementation cost of the measure
(other than financing costs); by
``(II) the annual cost savings
resulting from the measure, including--
``(aa) net savings in
estimated energy and water
costs; and
``(bb) operations,
maintenance, repair,
replacement, and other direct
costs.
``(ii) Modifications and exceptions.--The
Secretary, in guidelines issued pursuant to
paragraph (6), may make such modifications and
provide such exceptions to the calculation of the
payback period of a measure as the Secretary
determines to be appropriate to achieve the
purposes of this Act.
``(F) Recommissioning.--The term `recommissioning'
means a process--
``(i) of commissioning a facility or system
beyond the project development and warranty phases
of the facility or system; and
``(ii) the primary goal of which is to ensure
optimum performance of a facility, in accordance
with design or current operating needs, over the
useful life of the facility, while meeting
building occupancy requirements.
``(G) Retrocommissioning.--The term `retrocommis-
sioning' means a process of commissioning a facility or
system that was not commissioned at the time of
construction of the facility or system.
``(2) Facility energy managers.--
``(A) In general.--Each Federal agency shall
designate an energy manager responsible for implementing
this subsection and reducing energy use at each facility
that meets criteria under subparagraph (B).

[[Page 1609]]
121 STAT. 1609

``(B) Covered [NOTE: Criteria. facilities.--The
Secretary shall develop criteria, after consultation
with affected agencies, energy efficiency advocates, and
energy and utility service providers, that cover, at a
minimum, Federal facilities, including central utility
plants and distribution systems and other energy
intensive operations, that constitute at least 75
percent of facility energy use at each agency.
``(3) Energy and water evaluations.--
``(A) Evaluations.--Effective [NOTE: Effective
date. beginning on the date that is 180 days after the
date of enactment of this subsection and annually
thereafter, energy managers shall complete, for each
calendar year, a comprehensive energy and water
evaluation for approximately 25 percent of the
facilities of each agency that meet the criteria under
paragraph (2)(B) in a manner that ensures that an
evaluation of each such facility is completed at least
once every 4 years.
``(B) Recommissioning and retrocommissioning.--As
part of the evaluation under subparagraph (A), the
energy manager shall identify and assess recommissioning
measures (or, if the facility has never been
commissioned, retrocommissioning measures) for each such
facility.
``(4) Implementation of identified energy and water
efficiency measures.--Not [NOTE: Deadline. later than 2 years
after the completion of each evaluation under paragraph (3),
each energy manager may--
``(A) implement any energy- or water-saving measure
that the Federal agency identified in the evaluation
conducted under paragraph (3) that is life cycle cost-
effective; and
``(B) bundle individual measures of varying paybacks
together into combined projects.
``(5) Follow-up on implemented measures.--For each measure
implemented under paragraph (4), each energy manager shall
ensure that--
``(A) equipment, including building and equipment
controls, is fully commissioned at acceptance to be
operating at design specifications;
``(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in place at
acceptance and is followed;
``(C) equipment and system performance is measured
during its entire life to ensure proper operations,
maintenance, and repair; and
``(D) energy and water savings are measured and
verified.
``(6) Guidelines.--
``(A) In [NOTE: Deadlines. general.--The
Secretary shall issue guidelines and necessary criteria
that each Federal agency shall follow for implementation
of--
``(i) paragraphs (2) and (3) not later than
180 days after the date of enactment of this
subsection; and
``(ii) paragraphs (4) and (5) not later than 1
year after the date of enactment of this
subsection.
``(B) Relationship to funding source.--The
guidelines issued by the Secretary under subparagraph
(A) shall be appropriate and uniform for measures funded
with each

[[Page 1610]]
121 STAT. 1610

type of funding made available under paragraph (10), but
may distinguish between different types of measures
project size, and other criteria the Secretary
determines are relevant.
``(7) Web-based certification.--
``(A) In general.--For each facility that meets the
criteria established by the Secretary under paragraph
(2)(B), the energy manager shall use the web-based
tracking system under subparagraph (B) to certify
compliance with the requirements for--
``(i) energy and water evaluations under
paragraph (3);
``(ii) implementation of identified energy and
water measures under paragraph (4); and
``(iii) follow-up on implemented measures
under paragraph (5).
``(B) Deployment.--
``(i) In [NOTE: Deadline. general.--Not
later than 1 year after the date of enactment of
this subsection, the Secretary shall develop and
deploy a web-based tracking system required under
this paragraph in a manner that tracks, at a
minimum--
``(I) the covered facilities;
``(II) the status of meeting the
requirements specified in subparagraph
(A);
``(III) the estimated cost and
savings for measures required to be
implemented in a facility;
``(IV) the measured savings and
persistence of savings for implemented
measures; and
``(V) the benchmarking information
disclosed under paragraph (8)(C).
``(ii) Ease of compliance.--The Secretary
shall ensure that energy manager compliance with
the requirements in this paragraph, to the maximum
extent practicable--
``(I) can be accomplished with the
use of streamlined procedures and
templates that minimize the time demands
on Federal employees; and
``(II) is coordinated with other
applicable energy reporting
requirements.
``(C) Availability.--
``(i) In [NOTE: Internet. general.--Subject
to clause (ii), the Secretary shall make the web-
based tracking system required under this
paragraph available to Congress, other Federal
agencies, and the public through the Internet.
``(ii) Exemptions.--At the request of a
Federal agency, the Secretary may exempt specific
data for specific facilities from disclosure under
clause (i) for national security purposes.
``(8) Benchmarking of federal facilities.--
``(A) In general.--The energy manager shall enter
energy use data for each metered building that is (or is
a part of) a facility that meets the criteria
established by the Secretary under paragraph (2)(B) into
a building energy use benchmarking system, such as the
Energy Star Portfolio Manager.

[[Page 1611]]
121 STAT. 1611

``(B) System [NOTE: Deadline. and guidance.--Not
later than 1 year after the date of enactment of this
subsection, the Secretary shall--
``(i) select or develop the building energy
use benchmarking system required under this
paragraph for each type of building; and
``(ii) issue guidance for use of the system.
``(C) Public disclosure.--Each energy manager shall
post the information entered into, or generated by, a
benchmarking system under this subsection, on the web-
based tracking system under paragraph (7)(B). The energy
manager shall update such information each year, and
shall include in such reporting previous years'
information to allow changes in building performance to
be tracked over time.
``(9) Federal agency scorecards.--
``(A) In general.--The Director of the Office of
Management and Budget shall issue semiannual scorecards
for energy management activities carried out by each
Federal agency that includes--
``(i) summaries of the status of implementing
the various requirements of the agency and its
energy managers under this subsection; and
``(ii) any other means of measuring
performance that the Director considers
appropriate.
``(B) Availability.--
The [NOTE: Internet. Director shall make the
scorecards required under this paragraph available to
Congress, other Federal agencies, and the public through
the Internet.
``(10) Funding and implementation.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary
to carry out this subsection.
``(B) Funding options.--
``(i) In general.--To carry out this
subsection, a Federal agency may use any
combination of--
``(I) appropriated funds made
available under subparagraph (A); and
``(II) private financing otherwise
authorized under Federal law, including
financing available through energy
savings performance contracts or utility
energy service contracts.
``(ii) Combined funding for same measure.--A
Federal agency may use any combination of
appropriated funds and private financing described
in clause (i) to carry out the same measure under
this subsection.
``(C) Implementation.--Each Federal agency may
implement the requirements under this subsection itself
or may contract out performance of some or all of the
requirements.
``(11) Rule of construction.--This subsection shall not be
construed to require or to obviate any contractor savings
guarantees.''.

[[Page 1612]]
121 STAT. 1612

SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.

(a) Standards.--Section 305(a)(3) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at the end
the following new subparagraph:
``(D) [NOTE: Deadline. Regulations. Not later than 1 year after
the date of enactment of the Energy Independence and Security Act of
2007, the Secretary shall establish, by rule, revised Federal building
energy efficiency performance standards that require that:
``(i) For new Federal buildings and Federal buildings
undergoing major renovations, with respect to which the
Administrator of General Services is required to transmit a
prospectus to Congress under section 3307 of title 40, United
States Code, in the case of public buildings (as defined in
section 3301 of title 40, United States Code), or of at least
$2,500,000 in costs adjusted annually for inflation for other
buildings:
``(I) The buildings shall be designed so that the
fossil fuel-generated energy consumption of the
buildings is reduced, as compared with such energy
consumption by a similar building in fiscal year 2003
(as measured by Commercial Buildings Energy Consumption
Survey or Residential Energy Consumption Survey data
from the Energy Information Agency), by the percentage
specified in the following table:





``Fiscal Year                  Percentage Reduction
2010.......................  55
2015.......................  65
2020.......................  80
2025.......................  90
2030.......................  100.


``(II) Upon petition by an agency subject to this
subparagraph, the Secretary may adjust the applicable
numeric requirement under subclause (I) downward with
respect to a specific building, if the head of the
agency designing the building certifies in writing that
meeting such requirement would be technically
impracticable in light of the agency's specified
functional needs for that building and the Secretary
concurs with the agency's conclusion. This subclause
shall not apply to the General Services Administration.

``(III) [NOTE: Applicability. Deadline. Sustainable
design principles shall be applied to the siting,
design, and construction of such buildings. Not later
than 90 days after the date of enactment of the Energy
Independence and Security Act of 2007, the Secretary,
after reviewing the findings of the Federal Director
under section 436(h) of that Act, in consultation with
the Administrator of General Services, and in
consultation with the Secretary of Defense for
considerations relating to those facilities under the
custody and control of the Department of Defense, shall
identify a certification system and level for green
buildings that the Secretary determines to be the most
likely to encourage a comprehensive and environmentally-
sound approach to certification of green buildings. The
identification of the certification system and level
shall be based on a review of the Federal

[[Page 1613]]
121 STAT. 1613

Director's findings under section 436(h) of the Energy
Independence and Security Act of 2007 and the criteria
specified in clause (iii), shall identify the highest
level the Secretary determines is appropriate above the
minimum level required for certification under the
system selected, and shall achieve results at least
comparable to the system used by and highest level
referenced by the General Services Administration as of
the date of enactment of the Energy Independence and
Security Act of 2007. Within [NOTE: Deadline. 90 days
of the completion of each study required by clause (iv),
the Secretary, in consultation with the Administrator of
General Services, and in consultation with the Secretary
of Defense for considerations relating to those
facilities under the custody and control of the
Department of Defense, shall review and update the
certification system and level, taking into account the
conclusions of such study.
``(ii) In establishing criteria for identifying major
renovations that are subject to the requirements of this
subparagraph, the Secretary shall take into account the scope,
degree, and types of renovations that are likely to provide
significant opportunities for substantial improvements in energy
efficiency.
``(iii) In identifying the green building certification
system and level, the Secretary shall take into consideration--
``(I) the ability and availability of assessors and
auditors to independently verify the criteria and
measurement of metrics at the scale necessary to
implement this subparagraph;
``(II) the ability of the applicable certification
organization to collect and reflect public comment;
``(III) the ability of the standard 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 sustainable use of water,
energy, and other natural resources;
``(bb) use of renewable energy sources;
``(cc) improved indoor environmental quality
through enhanced indoor air quality, thermal
comfort, acoustics, day lighting, pollutant source
control, and use of low-emission materials and
building system controls; and
``(dd) such other criteria as the Secretary
determines to be appropriate; and
``(V) national recognition within the building
industry.
``(iv) [NOTE: Study. At least once every 5 years, and in
accordance with section 436 of the Energy Independence and
Security Act of 2007, the Administrator of General Services
shall conduct a study to evaluate and compare available third-
party green building certification systems and levels, taking
into account the criteria listed in clause (iii).
``(v) The Secretary may by rule allow Federal agencies to
develop internal certification processes, using certified
professionals, in lieu of certification by the certification
entity identified under clause
(i)(III). [NOTE: Guidelines. The Secretary shall include in
any such rule guidelines to ensure that the certification
process results in buildings meeting the applicable
certification system

[[Page 1614]]
121 STAT. 1614

and level identified under clause (i)(III). An agency employing
an internal certification process must continue to obtain
external certification by the certification entity identified
under clause (i)(III) for at least 5 percent of the total number
of buildings certified annually by the agency.
``(vi) With respect to privatized military housing, the
Secretary of Defense, after consultation with the Secretary may,
through rulemaking, develop alternative criteria to those
established by subclauses (I) and (III) of clause (i) that
achieve an equivalent result in terms of energy savings,
sustainable design, and green building performance.
``(vii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.''.

(b) Definitions.--Section 303(6) of the Energy Conservation and
Production Act (42 U.S.C. 6832(6)) is amended by striking ``which is not
legally subject to State or local building codes or similar
requirements.'' and inserting ``. Such term shall include buildings
built for the purpose of being leased by a Federal agency, and
privatized military housing.''.
(c) Revision [NOTE: Deadline. 42 USC 6834 note. of Federal
Acquisition Regulation.--Not later than 2 years after the date of the
enactment of this Act, the Federal Acquisition Regulation shall be
revised to require Federal officers and employees to comply with this
section and the amendments made by this section in the acquisition,
construction, or major renovation of any facility. The members of the
Federal Acquisition Regulatory Council (established under section 25 of
the Office of Federal Procurement Policy Act (41 U.S.C. 421)) shall
consult with the Federal Director and the Commercial Director before
promulgating regulations to carry out this subsection.

(d) Guidance.--Not [NOTE: Deadline. later than 90 days after the
date of promulgation of the revised regulations under subsection (c),
the Administrator for Federal Procurement Policy shall issue guidance to
all Federal procurement executives providing direction and instructions
to renegotiate the design of proposed facilities and major renovations
for existing facilities to incorporate improvements that are consistent
with this section.

SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY.

(a) Large Capital Energy Investments.--Section 543 of the National
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at
the end the following:
``(f) Large Capital Energy Investments.--
``(1) In general.--Each Federal agency shall ensure that any
large capital energy investment in an existing building that is
not a major renovation but involves replacement of installed
equipment (such as heating and cooling systems), or involves
renovation, rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs, systems,
equipment, and controls that are life-cycle cost effective.
``(2) Process [NOTE: Deadline. for review of investment
decisions.--Not later than 180 days after the date of enactment
of this subsection, each Federal agency shall--

[[Page 1615]]
121 STAT. 1615

``(A) develop a process for reviewing each decision
made on a large capital energy investment described in
paragraph (1) to ensure that the requirements of this
subsection are met; and
``(B) [NOTE: Reports. report to the Director of
the Office of Management and Budget on the process
established.
``(3) Compliance report.--Not later than 1 year after the
date of enactment of this subsection, the Director of the Office
of Management and Budget shall evaluate and report to Congress
on the compliance of each agency with this subsection.''.

(b) Metering.--Section 543(e)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting after the
second sentence the following: [NOTE: Deadline. ``Not later than
October 1, 2016, each agency shall provide for equivalent metering of
natural gas and steam, in accordance with guidelines established by the
Secretary under paragraph (2).''.

SEC. 435. [NOTE: 42 USC 17091. LEASING.

(a) In [NOTE: Effective date. General.--Except as provided in
subsection (b), effective beginning on the date that is 3 years after
the date of enactment of this Act, no Federal agency shall enter into a
contract to lease space in a building that has not earned the Energy
Star label in the most recent year.

(b) Exception.--
(1) Application.--This subsection applies if--
(A) no space is available in a building described in
subsection (a) that meets the functional requirements of
an agency, including locational needs;
(B) the agency proposes to remain in a building that
the agency has occupied previously;
(C) the agency proposes to lease a building of
historical, architectural, or cultural significance (as
defined in section 3306(a)(4) of title 40, United States
Code) or space in such a building; or
(D) the lease is for not more than 10,000 gross
square feet of space.
(2) Buildings [NOTE: Deadline. without energy star
label.--If one of the conditions described in paragraph (2) is
met, the agency may enter into a contract to lease space in a
building that has not earned the Energy Star label in the most
recent year if the lease contract includes provisions requiring
that, prior to occupancy or, in the case of a contract described
in paragraph (1)(B), not later than 1 year after signing the
contract, the space will be renovated for all energy efficiency
and conservation improvements that would be cost effective over
the life of the lease, including improvements in lighting,
windows, and heating, ventilation, and air conditioning systems.

(c) Revision of Federal Acquisition Regulation.--
(1) In general.--Not [NOTE: Deadline. later than 3 years
after the date of the enactment of this Act, the Federal
Acquisition Regulation described in section 6(a) of the Office
of Federal Procurement Policy Act (41 U.S.C. 405(a)) shall be
revised to require Federal officers and employees to comply with
this section in leasing buildings.
(2) Consultation.--The members of the Federal Acquisition
Regulatory Council established under section 25 of the Office of
Federal Procurement Policy Act (41 U.S.C. 421) shall

[[Page 1616]]
121 STAT. 1616

consult with the Federal Director and the Commercial Director
before promulgating regulations to carry out this subsection.

SEC. 436. HIGH-PERFORMANCE [NOTE: 42 USC 17092. GREEN FEDERAL
BUILDINGS.

(a) Establishment [NOTE: Deadline. of Office.--Not later than 60
days after the date of enactment of this Act, the Administrator shall
establish within the General Services Administration an Office of
Federal High-Performance Green Buildings, and appoint an individual to
serve as Federal Director in, a position in the career-reserved Senior
Executive service, to--
(1) establish and manage the Office of Federal High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.

(b) Compensation.--The compensation of the Federal Director shall
not exceed the maximum rate of basic pay for the Senior Executive
Service under section 5382 of title 5, United States Code, including any
applicable locality-based comparability payment that may be authorized
under section 5304(h)(2)(C) of that title.
(c) Duties.--The Federal Director shall--
(1) coordinate the activities of the Office of Federal High-
Performance Green Buildings with the activities of the Office of
Commercial High-Performance Green Buildings, and the Secretary,
in accordance with section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D));
(2) ensure full coordination of high-performance green
building information and activities within the General Services
Administration and all relevant agencies, including, at a
minimum--
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental
Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human Services;
(F) the Department of Defense;
(G) the Department of Transportation;
(H) the National Institute of Standards and
Technology; and
(I) the Office of Science and Technology Policy;
(3) establish a senior-level Federal Green Building Advisory
Committee under section 474, which shall provide advice and
recommendations in accordance with that section and subsection
(d);
(4) identify and every 5 years reassess improved or higher
rating standards recommended by the Advisory Committee;
(5) ensure full coordination, dissemination of information
regarding, and promotion of the results of research and
development information relating to Federal high-performance
green building initiatives;
(6) identify and develop Federal high-performance green
building standards for all types of Federal facilities,
consistent with the requirements of this subtitle and section
305(a)(3)(D) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)(3)(D));
(7) establish green practices that can be used throughout
the life of a Federal facility;

[[Page 1617]]
121 STAT. 1617

(8) review and analyze current Federal budget practices and
life-cycle costing issues, and make recommendations to Congress,
in accordance with subsection (d); and
(9) identify opportunities to demonstrate innovative and
emerging green building technologies and concepts.

(d) Additional Duties.--The Federal Director, in consultation with
the Commercial Director and the Advisory Committee, and consistent with
the requirements of section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)) shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the identification of
barriers to high-performance green building life-cycle costing
and budgetary issues;
(2) develop guidance and conduct training sessions with
budget specialists and contracting personnel from Federal
agencies and budget examiners to apply life-cycle cost criteria
to actual projects;
(3) identify tools to aid life-cycle cost decisionmaking;
and
(4) explore the feasibility of incorporating the benefits of
high-performance green buildings, such as security benefits,
into a cost-budget analysis to aid in life-cycle costing for
budget and decisionmaking processes.

(e) Incentives.--Within [NOTE: Deadline. 90 days after the date
of enactment of this Act, the Federal Director shall identify incentives
to encourage the expedited use of high-performance green buildings and
related technology in the operations of the Federal Government, in
accordance with the requirements of section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), including
through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial savings in
the annual budgets of Federal agencies for use in reinvesting in
future high-performance green building initiatives.

(f) Report.--Not later than 2 years after the date of enactment of
this Act, and biennially thereafter, the Federal Director, in
consultation with the Secretary, shall submit to Congress a report
that--
(1) describes the status of compliance with this subtitle,
the requirements of section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), and
other Federal high-performance green building initiatives in
effect as of the date of the report, including--
(A) the extent to which the programs are being
carried out in accordance with this subtitle and the
requirements of section 305(a)(3)(D) of that Act; and
(B) the status of funding requests and
appropriations for those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility procedures
that may affect the certification of new and existing Federal
facilities as high-performance green buildings under the
provisions of section 305(a)(3)(D) of that Act and the criteria
established in subsection (h);

[[Page 1618]]
121 STAT. 1618

(3) identifies inconsistencies, as reported to the Advisory
Committee, in Federal law with respect to product acquisition
guidelines and high-performance product guidelines;
(4) recommends language for uniform standards for use by
Federal agencies in environmentally responsible acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(A) restructuring of budgets to require the use of
complete energy and environmental cost accounting;
(B) using operations expenditures in budget-related
decisions while simultaneously incorporating
productivity and health measures (as those measures can
be quantified by the Office of Federal High-Performance
Green Buildings, with the assistance of universities and
national laboratories);
(C) streamlining measures for permitting Federal
agencies to retain all identified savings accrued as a
result of the use of life-cycle costing for future high-
performance green building initiatives; and
(D) identifying short-term and long-term cost
savings that accrue from high-performance green
buildings, including those relating to health and
productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in times of
national security emergencies, natural disasters, or other dire
emergencies;
(7) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted promoting
high-performance green building (including the status of
implementation of those initiatives); and
(8) includes, for the 2-year period covered by the report,
recommendations to address each of the matters, and a plan for
implementation of each recommendation, described in paragraphs
(1) through (7).

(g) Implementation.--The Office of Federal High-Performance Green
Buildings shall carry out each plan for implementation of
recommendations under subsection (f)(8).
(h) Identification of Certification System.--
(1) In general.--For [NOTE: Deadline. the purpose of this
section, not later than 60 days after the date of enactment of
this Act, the Federal Director shall identify and shall provide
to the Secretary pursuant to section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a
certification system that the Director determines to be the most
likely to encourage a comprehensive and environmentally-sound
approach to certification of green buildings.
(2) Basis.--The system identified under paragraph (1) shall
be based on--
(A) [NOTE: Study. Deadline. a study completed
every 5 years and provided to the Secretary pursuant to
section 305(a)(3)(D) of that Act, which shall be carried
out by the Federal Director to compare and evaluate
standards;
(B) the ability and availability of assessors and
auditors to independently verify the criteria and
measurement of metrics at the scale necessary to
implement this subtitle;

[[Page 1619]]
121 STAT. 1619

(C) the ability of the applicable standard-setting
organization to collect and reflect public comment;
(D) the ability of the standard to be developed and
revised through a consensus-based process;
(E) an evaluation of the robustness of the criteria
for a high-performance green building, which shall give
credit for promoting--
(i) efficient and sustainable use of water,
energy, and other natural resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental quality
through enhanced indoor air quality, thermal
comfort, acoustics, day lighting, pollutant source
control, and use of low-emission materials and
building system controls;
(iv) reduced impacts from transportation
through building location and site design that
promote access by public transportation; and
(v) such other criteria as the Federal
Director determines to be appropriate; and
(F) national recognition within the building
industry.

SEC. 437. [NOTE: 42 USC 17093. FEDERAL GREEN BUILDING PERFORMANCE.

(a) In General.--Not [NOTE: Deadline. later than October 31 of
each of the 2 fiscal years following the fiscal year in which this Act
is enacted, and at such times thereafter as the Comptroller General of
the United States determines to be appropriate, the Comptroller General
of the United States shall, with respect to the fiscal years that have
passed since the preceding report--
(1) [NOTE: Audit. conduct an audit of the implementation
of this subtitle, section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), and
section 435; and
(2) [NOTE: Reports. submit to the Federal Director, the
Advisory Committee, the Administrator, and Congress a report
describing the results of the audit.

(b) Contents.--An audit under subsection (a) shall include a review,
with respect to the period covered by the report under subsection
(a)(2), of--
(1) budget, life-cycle costing, and contracting issues,
using best practices identified by the Comptroller General of
the United States and heads of other agencies in accordance with
section 436(d);
(2) the level of coordination among the Federal Director,
the Office of Management and Budget, the Department of Energy,
and relevant agencies;
(3) the performance of the Federal Director and other
agencies in carrying out the implementation plan;
(4) the design stage of high-performance green building
measures;
(5) high-performance building data that were collected and
reported to the Office; and
(6) such other matters as the Comptroller General of the
United States determines to be appropriate.

(c) Environmental Stewardship Scorecard.--The Federal Director shall
consult with the Advisory Committee to enhance, and assist in the
implementation of, the Office of Management and Budget government
efficiency reports and scorecards under

[[Page 1620]]
121 STAT. 1620

section 528 and the Environmental Stewardship Scorecard announced at the
White House summit on Federal sustainable buildings in January 2006, to
measure the implementation by each Federal agency of sustainable design
and green building initiatives.

SEC. 438. [NOTE: 42 USC 17094. STORM WATER RUNOFF REQUIREMENTS FOR
FEDERAL DEVELOPMENT PROJECTS.

The sponsor of any development or redevelopment project involving a
Federal facility with a footprint that exceeds 5,000 square feet shall
use site planning, design, construction, and maintenance strategies for
the property to maintain or restore, to the maximum extent technically
feasible, the predevelopment hydrology of the property with regard to
the temperature, rate, volume, and duration of flow.

SEC. 439. [NOTE: 42 USC 17095. COST-EFFECTIVE TECHNOLOGY ACCELERATION
PROGRAM.

(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a program
to accelerate the use of more cost-effective technologies and
practices at GSA facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the
coordination of cost reduction-related recommendations,
practices, and activities of all relevant Federal
agencies;
(B) provide technical assistance and operational
guidance to applicable tenants to achieve the goal
identified in subsection (c)(2)(B)(ii);
(C) establish methods to track the success of
Federal departments and agencies with respect to that
goal; and
(D) be fully coordinated with and no less stringent
nor less energy-conserving or water-conserving than
required by other provisions of this Act and other
applicable law, including sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525
and amendments made by those sections.

(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As [NOTE: Deadline. part of the
program under this section, not later than 90 days after
the date of enactment of this Act, the Administrator
shall conduct a review of--
(i) current use of cost-effective lighting
technologies and geothermal heat pumps in GSA
facilities; and
(ii) the availability to managers of GSA
facilities of cost-effective lighting technologies
and geothermal heat pumps.
(B) Requirements.--The review under subparagraph (A)
shall--
(i) examine the use of cost-effective lighting
technologies, geothermal heat pumps, and other
cost-effective technologies and practices by
Federal agencies in GSA facilities; and
(ii) as prepared in consultation with the
Administrator of the Environmental Protection
Agency, identify cost-effective lighting
technology and geothermal heat

[[Page 1621]]
121 STAT. 1621

pump technology standards that could be used for
all types of GSA facilities.
(2) Replacement.--
(A) In general.--As [NOTE: Deadline. part of the
program under this section, not later than 180 days
after the date of enactment of this Act, the
Administrator shall establish, using available
appropriations and programs implementing sections 432
and 525 (and amendments made by those sections), a cost-
effective lighting technology and geothermal heat pump
technology acceleration program to achieve maximum
feasible replacement of existing lighting, heating,
cooling technologies with cost-effective lighting
technologies and geothermal heat pump technologies in
each GSA facility. Such program shall fully comply with
the requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525
and amendments made by those sections and any other
provisions of law, which shall be applicable to the
extent that they are more stringent or would achieve
greater energy savings than required by this section.
(B) Acceleration plan timetable.--
(i) In general.--
To [NOTE: Deadline. implement the program
established under subparagraph (A), not later than
1 year after the date of enactment of this Act,
the Administrator shall establish a timetable of
actions to comply with the requirements of this
section and sections 431 through 435, whichever
achieves greater energy savings most
expeditiously, including milestones for specific
activities needed to replace existing lighting,
heating, cooling technologies with cost-effective
lighting technologies and geothermal heat pump
technologies, to the maximum extent feasible
(including at the maximum rate feasible), at each
GSA facility.
(ii) Goal.--The goal of the timetable under
clause (i) shall be to complete, using available
appropriations and programs implementing sections
431 through 435 (and amendments made by those
sections), maximum feasible replacement of
existing lighting, heating, and cooling
technologies with cost-effective lighting
technologies and geothermal heat pump technologies
consistent with the requirements of this section
and sections 431 through 435, whichever achieves
greater energy savings most expeditiously.
Notwithstanding any provision of this section,
such program shall fully comply with the
requirements of the Act including sections 321
through 324, 431 through 438, 461, 511 through
518, and 523 through 525 and amendments made by
those sections and other provisions of law, which
shall be applicable to the extent that they are
more stringent or would achieve greater energy or
water savings than required by this section.

(d) GSA Facility Technologies and Practices.--
(1) In general.--Not [NOTE: Deadline. later than 180 days
after the date of enactment of this Act, and annually
thereafter, the Administrator shall--
(A) ensure that a manager responsible for
implementing section 432 and for accelerating the use of
cost-

[[Page 1622]]
121 STAT. 1622

effective technologies and practices is designated for
each GSA facility; and
(B) [NOTE: Plan. submit to Congress a plan to
comply with section 432, this section, and other
applicable provisions of this Act and applicable law
with respect to energy and water conservation at GSA
facilities.
(2) Measures.--The [NOTE: Deadline. plan shall implement
measures required by such other provisions of law in accordance
with those provisions, and shall implement the measures required
by this section to the maximum extent feasible (including at the
maximum rate feasible) using available appropriations and
programs implementing sections 431 through 435 and 525 (and
amendments made by those sections), by not later than the date
that is 5 years after the date of enactment of this Act.
(3) Contents of plan.--The plan shall--
(A) with respect to cost-effective technologies and
practices--
(i) identify the specific activities needed to
comply with sections 431 through 435;
(ii) [NOTE: Deadline. identify the specific
activities needed to achieve at least a 20-percent
reduction in operational costs through the
application of cost-effective technologies and
practices from 2003 levels at GSA facilities by
not later than 5 years after the date of enactment
of this Act;
(iii) describe activities required and carried
out to estimate the funds necessary to achieve the
reduction described in clauses (i) and (ii);
(B) include an estimate of the funds necessary to
carry out this section;
(C) describe the status of the implementation of
cost-effective technologies and practices at GSA
facilities, including--
(i) the extent to which programs, including
the program established under subsection (b), are
being carried out in accordance with this
subtitle; and
(ii) the status of funding requests and
appropriations for those programs;
(D) identify within the planning, budgeting, and
construction processes, all types of GSA facility-
related procedures that inhibit new and existing GSA
facilities from implementing cost-effective
technologies;
(E) recommend language for uniform standards for use
by Federal agencies in implementing cost-effective
technologies and practices;
(F) in coordination with the Office of Management
and Budget, review the budget process for capital
programs with respect to alternatives for--
(i) implementing measures that will assure
that Federal agencies retain all identified
savings accrued as a result of the use of cost-
effective technologies, consistent with section
543(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(a)(1), and other
applicable law; and
(ii) identifying short- and long-term cost
savings that accrue from the use of cost-effective
technologies and practices;

[[Page 1623]]
121 STAT. 1623

(G) with respect to cost-effective technologies and
practices, achieve substantial operational cost savings
through the application of the technologies; and
(H) include recommendations to address each of the
matters, and a plan for implementation of each
recommendation, described in subparagraphs (A) through
(G).
(4) Administration.--Notwithstanding any provision of this
section, the program required under this section shall fully
comply with the requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525 and
amendments made by those sections, which shall be applicable to
the extent that they are more stringent or would achieve greater
energy or water savings than required by this section.

(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section, to
remain available until expended.

SEC. 440. [NOTE: 42 USC 17096. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out sections 434
through 439 and 482 $4,000,000 for each of fiscal years 2008 through
2012, to remain available until expended.

SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.

Section 544(a)(1) of the National Energy Conservation Policy Act (42
U.S.C. 8254(a)(1)) is amended by striking ``25'' and inserting ``40''.

Subtitle D--Industrial Energy Efficiency

SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.

(a) In General.--Title III of the Energy Policy and Conservation Act
(42 U.S.C. 6291 et seq.) is amended by inserting after part D the
following:

``PART E--INDUSTRIAL ENERGY EFFICIENCY

``SEC. 371. [NOTE: 42 USC 6341. DEFINITIONS.

``In this part:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Combined heat and power.--The term `combined heat and
power system' means a facility that--
``(A) simultaneously and efficiently produces useful
thermal energy and electricity; and
``(B) recovers not less than 60 percent of the
energy value in the fuel (on a higher-heating-value
basis) in the form of useful thermal energy and
electricity.
``(3) Net excess power.--The term `net excess power' means,
for any facility, recoverable waste energy recovered in the form
of electricity in quantities exceeding the total consumption of
electricity at the specific time of generation on the site at
which the facility is located.
``(4) Project.--The term `project' means a recoverable waste
energy project or a combined heat and power system project.

[[Page 1624]]
121 STAT. 1624

``(5) Recoverable waste energy.--The term `recoverable waste
energy' means waste energy from which electricity or useful
thermal energy may be recovered through modification of an
existing facility or addition of a new facility.
``(6) Registry.--The term `Registry' means the Registry of
Recoverable Waste Energy Sources established under section
372(d).
``(7) Useful thermal energy.--The term `useful thermal
energy' means energy--
``(A) in the form of direct heat, steam, hot water,
or other thermal form that is used in production and
beneficial measures for heating, cooling, humidity
control, process use, or other valid thermal end-use
energy requirements; and
``(B) for which fuel or electricity would otherwise
be consumed.
``(8) Waste energy.--The term `waste energy' means--
``(A) exhaust heat or flared gas from any industrial
process;
``(B) waste gas or industrial tail gas that would
otherwise be flared, incinerated, or vented;
``(C) a pressure drop in any gas, excluding any
pressure drop to a condenser that subsequently vents the
resulting heat; and
``(D) such other forms of waste energy as the
Administrator may determine.
``(9) Other terms.--The terms `electric utility',
`nonregulated electric utility', `State regulated electric
utility', and other terms have the meanings given those terms in
title I of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2611 et seq.).

``SEC. 372. [NOTE: 42 USC 6342. SURVEY AND REGISTRY.

``(a) Recoverable Waste Energy Inventory Program.--
``(1) In general.--The Administrator, in cooperation with
the Secretary and State energy offices, shall establish a
recoverable waste energy inventory program.
``(2) Survey.--The program shall include--
``(A) an ongoing survey of all major industrial and
large commercial combustion sources in the United States
(as defined by the Administrator) and the sites at which
the sources are located; and
``(B) a review of each source for the quantity and
quality of waste energy produced at the source.

``(b) Criteria.--
``(1) In general.--
Not [NOTE: Deadline. Publication. Regulations. later than 270
days after the date of enactment of the Energy Independence and
Security Act of 2007, the Administrator shall publish a rule for
establishing criteria for including sites in the Registry.
``(2) Inclusions.--The criteria shall include--
``(A) a requirement that, to be included in the
Registry, a project at the site shall be determined to
be economically feasible by virtue of offering a payback
of invested costs not later than 5 years after the date
of first full project operation (including incentives
offered under this part);
``(B) standards to ensure that projects proposed for
inclusion in the Registry are not developed or used for

[[Page 1625]]
121 STAT. 1625

the primary purpose of making sales of excess electric
power under the regulatory provisions of this part; and
``(C) procedures for contesting the listing of any
source or site on the Registry by any State, utility, or
other interested person.

``(c) Technical Support.--On the request of the owner or operator of
a source or site included in the Registry, the Secretary shall--
``(1) provide to owners or operators of combustion sources
technical support; and
``(2) offer partial funding (in an amount equal to not more
than one-half of total costs) for feasibility studies to confirm
whether or not investment in recovery of waste energy or
combined heat and power at a source would offer a payback period
of 5 years or less.

``(d) Registry.--
``(1) Establishment.--
``(A) In general.--Not [NOTE: Deadline. later
than 1 year after the date of enactment of the Energy
Independence and Security Act of 2007, the Administrator
shall establish a Registry of Recoverable Waste Energy
Sources, and sites on which the sources are located,
that meet the criteria established under subsection (b).
``(B) Updates; availability.--The Administrator
shall--
``(i) update the Registry on a regular basis;
and
``(ii) [NOTE: Public
information. Website. make the Registry
available to the public on the website of the
Environmental Protection Agency.
``(C) Contesting listing.--Any State, electric
utility, or other interested person may contest the
listing of any source or site by submitting a petition
to the Administrator.
``(2) Contents.--
``(A) In general.--The Administrator shall register
and include on the Registry all sites meeting the
criteria established under subsection (b).
``(B) Quantity of recoverable waste energy.--The
Administrator shall--
``(i) calculate the total quantities of
potentially recoverable waste energy from sources
at the sites, nationally and by State; and
``(ii) make public--
``(I) the total quantities described
in clause (i); and
``(II) information on the criteria
pollutant and greenhouse gas emissions
savings that might be achieved with
recovery of the waste energy from all
sources and sites listed on the
Registry.
``(3) Availability of information.--
``(A) In general.--
The [NOTE: Notification. Administrator shall notify
owners or operators of recoverable waste energy sources
and sites listed on the Registry prior to publishing the
listing.
``(B) Detailed quantitative information.--
``(i) In general.--Except as provided in
clause (ii), the owner or operator of a source at
a site may

[[Page 1626]]
121 STAT. 1626

elect to have detailed quantitative information
concerning the site not made public by notifying
the Administrator of the election.
``(ii) Limited availability.--The information
shall be made available to--
``(I) the applicable State energy
office; and
``(II) any utility requested to
support recovery of waste energy from
the source pursuant to the incentives
provided under section 374.
``(iii) State totals.--Information concerning
the site shall be included in the total quantity
of recoverable waste energy for a State unless
there are fewer than 3 sites in the State.
``(4) Removal of projects from registry.--
``(A) In general.--Subject to subparagraph (B), as a
project achieves successful recovery of waste energy,
the Administrator shall--
``(i) remove the related sites or sources from
the Registry; and
``(ii) designate the removed projects as
eligible for incentives under section 374.
``(B) Limitation.--No project shall be removed from
the Registry without the consent of the owner or
operator of the project if--
``(i) the owner or operator has submitted a
petition under section 374; and
``(ii) the petition has not been acted on or
denied.
``(5) Ineligibility of certain sources.--The Administrator
shall not list any source constructed after the date of the
enactment of the Energy Independence and Security Act of 2007 on
the Registry if the Administrator determines that the source--
``(A) was developed for the primary purpose of
making sales of excess electric power under the
regulatory provisions of this part; or
``(B) does not capture at least 60 percent of the
total energy value of the fuels used (on a higher-
heating-value basis) in the form of useful thermal
energy, electricity, mechanical energy, chemical output,
or any combination thereof.

``(e) Self-Certification.--
``(1) In general.--Subject to any procedures that are
established by the Administrator, an owner, operator, or third-
party developer of a recoverable waste energy project that
qualifies under standards established by the Administrator may
self-certify the sites or sources of the owner, operator, or
developer to the Administrator for inclusion in the Registry.
``(2) Review and approval.--To prevent a fraudulent listing,
a site or source shall be included on the Registry only if the
Administrator reviews and approves the self-certification.

``(f) New Facilities.--As a new energy-consuming industrial facility
is developed after the date of enactment of the Energy Independence and
Security Act of 2007, to the extent the facility may constitute a site
with recoverable waste energy that may qualify for inclusion on the
Registry, the Administrator may elect to include the facility on the
Registry, at the request of the owner, operator, or developer of the
facility, on a conditional basis with

[[Page 1627]]
121 STAT. 1627

the site to be removed from the Registry if the development ceases or
the site fails to qualify for listing under this part.
``(g) Optimum Means of Recovery.--For each site listed in the
Registry, at the request of the owner or operator of the site, the
Administrator shall offer, in cooperation with Clean Energy Application
Centers operated by the Secretary of Energy, suggestions for optimum
means of recovery of value from waste energy stream in the form of
electricity, useful thermal energy, or other energy-related products.
``(h) Revision.--Each annual report of a State under section 548(a)
of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)) shall
include the results of the survey for the State under this section.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to--
``(1) the Administrator to create and maintain the Registry
and services authorized by this section, $1,000,000 for each of
fiscal years 2008 through 2012; and
``(2) the Secretary--
``(A) to assist site or source owners and operators
in determining the feasibility of projects authorized by
this section, $2,000,000 for each of fiscal years 2008
through 2012; and
``(B) to provide funding for State energy office
functions under this section, $5,000,000.

``SEC. 373. [NOTE: 42 USC 6343. WASTE ENERGY RECOVERY INCENTIVE GRANT
PROGRAM.

``(a) Establishment.--The Secretary shall establish in the
Department of Energy a waste energy recovery incentive grant program to
provide incentive grants to--
``(1) owners and operators of projects that successfully
produce electricity or incremental useful thermal energy from
waste energy recovery;
``(2) utilities purchasing or distributing the electricity;
and
``(3) States that have achieved 80 percent or more of
recoverable waste heat recovery opportunities.

``(b) Grants to Projects and Utilities.--
``(1) In general.--The Secretary shall make grants under
this section--
``(A) to the owners or operators of waste energy
recovery projects; and
``(B) in the case of excess power purchased or
transmitted by a electric utility, to the utility.
``(2) Proof.--Grants may only be made under this section on
receipt of proof of waste energy recovery or excess electricity
generation, or both, from the project in a form prescribed by
the Secretary.
``(3) Excess electric energy.--
``(A) In general.--In the case of waste energy
recovery, a grant under this section shall be made at
the rate of $10 per megawatt hour of documented
electricity produced from recoverable waste energy (or
by prevention of waste energy in the case of a new
facility) by the project during the first 3 calendar
years of production, beginning on or after the date of
enactment of the Energy Independence and Security Act of
2007.

[[Page 1628]]
121 STAT. 1628

``(B) Utilities.--If the project produces net excess
power and an electric utility purchases or transmits the
excess power, 50 percent of so much of the grant as is
attributable to the net excess power shall be paid to
the electric utility purchasing or transporting the net
excess power.
``(4) Useful thermal energy.--In the case of waste energy
recovery that produces useful thermal energy that is used for a
purpose different from that for which the project is principally
designed, a grant under this section shall be made to the owner
or operator of the waste energy recovery project at the rate of
$10 for each 3,412,000 Btus of the excess thermal energy used
for the different purpose.

``(c) Grants to States.--In the case of any State that has achieved
80 percent or more of waste heat recovery opportunities identified by
the Secretary under this part, the Administrator shall make a 1-time
grant to the State in an amount of not more than $1,000 per megawatt of
waste-heat capacity recovered (or a thermal equivalent) to support
State-level programs to identify and achieve additional energy
efficiency.
``(d) Eligibility.--The [NOTE: Regulations. Secretary shall--
``(1) establish rules and guidelines to establish
eligibility for grants under subsection (b);
``(2) publicize the availability of the grant program known
to owners or operators of recoverable waste energy sources and
sites listed on the Registry; and
``(3) award grants under the program on the basis of the
merits of each project in recovering or preventing waste energy
throughout the United States on an impartial, objective, and not
unduly discriminatory basis.

``(e) Limitation.--The Secretary shall not award grants to any
person for a combined heat and power project or a waste heat recovery
project that qualifies for specific Federal tax incentives for combined
heat and power or for waste heat recovery.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary--
``(1) to make grants to projects and utilities under
subsection (b)--
``(A) $100,000,000 for fiscal year 2008 and
$200,000,000 for each of fiscal years 2009 through 2012;
and
``(B) such additional amounts for fiscal year 2008
and each fiscal year thereafter as may be necessary for
administration of the waste energy recovery incentive
grant program; and
``(2) to make grants to States under subsection (b),
$10,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.

``SEC. 374. [NOTE: 42 USC 6344. ADDITIONAL INCENTIVES FOR RECOVERY,
USE, AND PREVENTION OF INDUSTRIAL WASTE ENERGY.

``(a) Consideration of Standard.--
``(1) In general.--
Not [NOTE: Deadline. Notification. later than 180 days after
the receipt by a State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority), or nonregulated electric utility, of a request from
a project sponsor or owner or operator, the State regulatory
authority or nonregulated electric utility shall--

[[Page 1629]]
121 STAT. 1629

``(A) provide public notice and conduct a hearing
respecting the standard established by subsection (b);
and
``(B) on the basis of the hearing, consider and make
a determination whether or not it is appropriate to
implement the standard to carry out the purposes of this
part.
``(2) Relationship to state law.--For purposes of any
determination under paragraph (1) and any review of the
determination in any court, the purposes of this section
supplement otherwise applicable State law.
``(3) Nonadoption of standard.--Nothing in this part
prohibits any State regulatory authority or nonregulated
electric utility from making any determination that it is not
appropriate to adopt any standard described in paragraph (1),
pursuant to authority under otherwise applicable State law.

``(b) Standard for Sales of Excess Power.--For purposes of this
section, the standard referred to in subsection (a) shall provide that
an owner or operator of a waste energy recovery project identified on
the Registry that generates net excess power shall be eligible to
benefit from at least 1 of the options described in subsection (c) for
disposal of the net excess power in accordance with the rate conditions
and limitations described in subsection (d).
``(c) Options.--The options referred to in subsection (b) are as
follows:
``(1) Sale of net excess power to utility.--The electric
utility shall purchase the net excess power from the owner or
operator of the eligible waste energy recovery project during
the operation of the project under a contract entered into for
that purpose.
``(2) Transport by utility for direct sale to third party.--
The electric utility shall transmit the net excess power on
behalf of the project owner or operator to up to 3 separate
locations on the system of the utility for direct sale by the
owner or operator to third parties at those locations.
``(3) Transport over private transmission lines.--The State
and the electric utility shall permit, and shall waive or modify
such laws as would otherwise prohibit, the construction and
operation of private electric wires constructed, owned, and
operated by the project owner or operator, to transport the
power to up to 3 purchasers within a 3-mile radius of the
project, allowing the wires to use or cross public rights-of-
way, without subjecting the project to regulation as a public
utility, and according the wires the same treatment for safety,
zoning, land use, and other legal privileges as apply or would
apply to the wires of the utility, except that--
``(A) there shall be no grant of any power of
eminent domain to take or cross private property for the
wires; and
``(B) the wires shall be physically segregated and
not interconnected with any portion of the system of the
utility, except on the customer side of the revenue
meter of the utility and in a manner that precludes any
possible export of the electricity onto the utility
system, or disruption of the system.
``(4) Agreed on alternatives.--The utility and the owner or
operator of the project may reach agreement on any alternate
arrangement and payments or rates associated with the

[[Page 1630]]
121 STAT. 1630

arrangement that is mutually satisfactory and in accord with
State law.

``(d) Rate Conditions and Criteria.--
``(1) Definitions.--In this subsection:
``(A) Per unit distribution costs.--The term `per
unit distribution costs' means (in kilowatt hours) the
quotient obtained by dividing--
``(i) the depreciated book-value distribution
system costs of a utility; by
``(ii) the volume of utility electricity sales
or transmission during the previous year at the
distribution level.
``(B) Per unit distribution margin.--The term `per
unit distribution margin' means--
``(i) in the case of a State-regulated
electric utility, a per-unit gross pretax profit
equal to the product obtained by multiplying--
``(I) the State-approved percentage
rate of return for the utility for
distribution system assets; by
``(II) the per unit distribution
costs; and
``(ii) in the case of a nonregulated utility,
a per unit contribution to net revenues determined
multiplying--
``(I) the percentage (but not less
than 10 percent) obtained by dividing--
``(aa) the amount of any net
revenue payment or contribution
to the owners or subscribers of
the nonregulated utility during
the prior year; by
``(bb) the gross revenues of
the utility during the prior
year to obtain a percentage; by
``(II) the per unit distribution
costs.
``(C) Per unit transmission costs.--The term `per
unit transmission costs' means the total cost of those
transmission services purchased or provided by a utility
on a per-kilowatt-hour basis as included in the retail
rate of the utility.
``(2) Options.--The options described in paragraphs (1) and
(2) in subsection (c) shall be offered under purchase and
transport rate conditions that reflect the rate components
defined under paragraph (1) as applicable under the
circumstances described in paragraph (3).
``(3) Applicable rates.--
``(A) Rates applicable to sale of net excess
power.--
``(i) In general.--Sales made by a project
owner or operator of a facility under the option
described in subsection (c)(1) shall be paid for
on a per kilowatt hour basis that shall equal the
full undiscounted retail rate paid to the utility
for power purchased by the facility minus per unit
distribution costs, that applies to the type of
utility purchasing the power.
``(ii) Voltages exceeding 25 kilovolts.--If
the net excess power is made available for
purchase at voltages that must be transformed to
or from voltages

[[Page 1631]]
121 STAT. 1631

exceeding 25 kilovolts to be available for resale
by the utility, the purchase price shall further
be reduced by per unit transmission costs.
``(B) Rates applicable to transport by utility for
direct sale to third parties.--
``(i) In general.--Transportation by utilities
of power on behalf of the owner or operator of a
project under the option described in subsection
(c)(2) shall incur a transportation rate that
shall equal the per unit distribution costs and
per unit distribution margin, that applies to the
type of utility transporting the power.
``(ii) Voltages exceeding 25 kilovolts.--If
the net excess power is made available for
transportation at voltages that must be
transformed to or from voltages exceeding 25
kilovolts to be transported to the designated
third-party purchasers, the transport rate shall
further be increased by per unit transmission
costs.
``(iii) States with competitive retail markets
for electricity.--In a State with a competitive
retail market for electricity, the applicable
transportation rate for similar transportation
shall be applied in lieu of any rate calculated
under this paragraph.
``(4) Limitations.--
``(A) In general.--Any rate established for sale or
transportation under this section shall--
``(i) be modified over time with changes in
the underlying costs or rates of the electric
utility; and
``(ii) reflect the same time-sensitivity and
billing periods as are established in the retail
sales or transportation rates offered by the
utility.
``(B) Limitation.--No utility shall be required to
purchase or transport a quantity of net excess power
under this section that exceeds the available capacity
of the wires, meter, or other equipment of the electric
utility serving the site unless the owner or operator of
the project agrees to pay necessary and reasonable
upgrade costs.

``(e) Procedural Requirements for Consideration and Determination.--
``(1) Public notice and hearing.--
``(A) In general.--The consideration referred to in
subsection (a) shall be made after public notice and
hearing.
``(B) Administration.--The determination referred to
in subsection (a) shall be--
``(i) in writing;
``(ii) based on findings included in the
determination and on the evidence presented at the
hearing; and
``(iii) available to the public.
``(2) Intervention by administrator.--The Administrator may
intervene as a matter of right in a proceeding conducted under
this section--
``(A) to calculate--
``(i) the energy and emissions likely to be
saved by electing to adopt 1 or more of the
options; and

[[Page 1632]]
121 STAT. 1632

``(ii) the costs and benefits to ratepayers
and the utility; and
``(B) to advocate for the waste-energy recovery
opportunity.
``(3) Procedures.--
``(A) In general.--Except as otherwise provided in
paragraphs (1) and (2), the procedures for the
consideration and determination referred to in
subsection (a) shall be the procedures established by
the State regulatory authority or the nonregulated
electric utility.
``(B) Multiple projects.--If there is more than 1
project seeking consideration simultaneously in
connection with the same utility, the proceeding may
encompass all such projects, if full attention is paid
to individual circumstances and merits and an individual
judgment is reached with respect to each project.

``(f) Implementation.--
``(1) In general.--The State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility may, to
the extent consistent with otherwise applicable State law--
``(A) implement the standard determined under this
section; or
``(B) decline to implement any such standard.
``(2) Nonimplementation of standard.--
``(A) In general.--If a State regulatory authority
(with respect to each electric utility for which the
authority has ratemaking authority) or nonregulated
electric utility declines to implement any standard
established by this section, the authority or
nonregulated electric utility shall state in writing the
reasons for declining to implement the standard.
``(B) Availability to public.--The statement of
reasons shall be available to the public.
``(C) Annual report.--The Administrator shall
include in an annual report submitted to Congress a
description of the lost opportunities for waste-heat
recovery from the project described in subparagraph (A),
specifically identifying the utility and stating the
quantity of lost energy and emissions savings
calculated.
``(D) New petition.--If a State regulatory authority
(with respect to each electric utility for which the
authority has ratemaking authority) or nonregulated
electric utility declines to implement the standard
established by this section, the project sponsor may
submit a new petition under this section with respect to
the project at any time after the date that is 2 years
after the date on which the State regulatory authority
or nonregulated utility declined to implement the
standard.

``SEC. 375. [NOTE: 42 USC 6345. CLEAN ENERGY APPLICATION CENTERS.

``(a) Renaming.--
``(1) In general.--The Combined Heat and Power Application
Centers of the Department of Energy are redesignated as Clean
Energy Application Centers.
``(2) References.--Any reference in any law, rule,
regulation, or publication to a Combined Heat and Power
Application

[[Page 1633]]
121 STAT. 1633

Center shall be treated as a reference to a Clean Energy
Application Center.

``(b) Relocation.--
``(1) In general.--In order to better coordinate efforts
with the separate Industrial Assessment Centers and to ensure
that the energy efficiency and, when applicable, the renewable
nature of deploying mature clean energy technology is fully
accounted for, the Secretary shall relocate the administration
of the Clean Energy Application Centers to the Office of Energy
Efficiency and Renewable Energy within the Department of Energy.
``(2) Office of electricity delivery and energy
reliability.--The Office of Electricity Delivery and Energy
Reliability shall--
``(A) continue to perform work on the role of
technology described in paragraph (1) in support of the
grid and the reliability and security of the technology;
and
``(B) shall assist the Clean Energy Application
Centers in the work of the Centers with regard to the
grid and with electric utilities.

``(c) Grants.--
``(1) In general.--The Secretary shall make grants to
universities, research centers, and other appropriate
institutions to ensure the continued operations and
effectiveness of 8 Regional Clean Energy Application Centers in
each of the following regions (as designated for such purposes
as of the date of the enactment of the Energy Independence and
Security Act of 2007):
``(A) Gulf Coast.
``(B) Intermountain.
``(C) Mid-Atlantic.
``(D) Midwest.
``(E) Northeast.
``(F) Northwest.
``(G) Pacific.
``(H) Southeast.
``(2) Establishment of goals and compliance.--In making
grants under this subsection, the Secretary shall ensure that
sufficient goals are established and met by each Center
throughout the program duration concerning outreach and
technology deployment.

``(d) Activities.--
``(1) In general.--Each Clean Energy Application Center
shall--
``(A) operate a program to encourage deployment of
clean energy technologies through education and outreach
to building and industrial professionals; and other
individuals and organizations with an interest in
efficient energy use; and
``(B) provide project specific support to building
and industrial professionals through assessments and
advisory activities.
``(2) Types of activities.--Funds made available under this
section may be used--
``(A) to develop and distribute informational
materials on clean energy technologies, including
continuation of the

[[Page 1634]]
121 STAT. 1634

8 websites in existence on the date of enactment of the
Energy Independence and Security Act of 2007;
``(B) to develop and conduct target market
workshops, seminars, Internet programs, and other
activities to educate end users, regulators, and
stakeholders in a manner that leads to the deployment of
clean energy technologies;
``(C) to provide or coordinate onsite assessments
for sites and enterprises that may consider deployment
of clean energy technology;
``(D) to perform market research to identify high
profile candidates for clean energy deployment;
``(E) to provide consulting support to sites
considering deployment of clean energy technologies;
``(F) to assist organizations developing clean
energy technologies to overcome barriers to deployment;
and
``(G) to assist companies and organizations with
performance evaluations of any clean energy technology
implemented.

``(e) Duration.--
``(1) In general.--A grant awarded under this section shall
be for a period of 5 years
``(2) Annual evaluations.--Each grant shall be evaluated
annually for the continuation of the grant based on the
activities and results of the grant.

``(f) Authorization.--There is authorized to be appropriated to
carry out this section $10,000,000 for each of fiscal years 2008 through
2012.''.
(b) Table of Contents.--The table of contents of the Energy Policy
and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting
after the items relating to part D of title III the following:

``Part E--Industrial Energy Efficiency

``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373. Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and
prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.

SEC. 452. [NOTE: 42 USC 17111. ENERGY-INTENSIVE INDUSTRIES PROGRAM.

(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) an energy-intensive industry;
(B) a national trade association representing an
energy-intensive industry; or
(C) a person acting on behalf of 1 or more energy-
intensive industries or sectors, as determined by the
Secretary.
(2) Energy-intensive industry.--The term ``energy-intensive
industry'' means an industry that uses significant quantities of
energy as part of its primary economic activities, including--
(A) information technology, including data centers
containing electrical equipment used in processing,
storing, and transmitting digital information;
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including--

[[Page 1635]]
121 STAT. 1635

(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as determined
by the Secretary.
(3) Feedstock.--The term ``feedstock'' means the raw
material supplied for use in manufacturing, chemical, and
biological processes.
(4) Partnership.--The term ``partnership'' means an energy
efficiency partnership established under subsection (c)(1)(A).
(5) Program.--The term ``program'' means the energy-
intensive industries program established under subsection (b).

(b) Establishment of Program.--The Secretary shall establish a
program under which the Secretary, in cooperation with energy-intensive
industries and national industry trade associations representing the
energy-intensive industries, shall support, research, develop, and
promote the use of new materials processes, technologies, and techniques
to optimize energy efficiency and the economic competitiveness of the
United States' industrial and commercial sectors.
(c) Partnerships.--
(1) In general.--As part of the program, the Secretary shall
establish energy efficiency partnerships between the Secretary
and eligible entities to conduct research on, develop, and
demonstrate new processes, technologies, and operating practices
and techniques to significantly improve the energy efficiency of
equipment and processes used by energy-intensive industries,
including the conduct of activities to--
(A) increase the energy efficiency of industrial
processes and facilities;
(B) research, develop, and demonstrate advanced
technologies capable of energy intensity reductions and
increased environmental performance; and
(C) promote the use of the processes, technologies,
and techniques described in subparagraphs (A) and (B).
(2) Eligible activities.--Partnership activities eligible
for funding under this subsection include--
(A) feedstock and recycling research, development,
and demonstration activities to identify and promote--
(i) opportunities for meeting industry
feedstock requirements with more energy efficient
and flexible sources of feedstock or energy
supply;
(ii) strategies to develop and deploy
technologies that improve the quality and quantity
of feedstocks recovered from process and waste
streams; and
(iii) other methods using recycling, reuse,
and improved industrial materials;
(B) research to develop and demonstrate technologies
and processes that utilize alternative energy sources to
supply heat, power, and new feedstocks for energy-
intensive industries;

[[Page 1636]]
121 STAT. 1636

(C) research to achieve energy efficiency in steam,
power, control system, and process heat technologies,
and in other manufacturing processes; and
(D) industrial and commercial energy efficiency and
sustainability assessments to--
(i) assist individual industrial and
commercial sectors in developing tools,
techniques, and methodologies to assess--
(I) the unique processes and
facilities of the sectors;
(II) the energy utilization
requirements of the sectors; and
(III) the application of new, more
energy efficient technologies; and
(ii) conduct energy savings assessments;
(E) the incorporation of technologies and
innovations that would significantly improve the energy
efficiency and utilization of energy-intensive
commercial applications; and
(F) any other activities that the Secretary
determines to be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for funding under
this subsection, a partnership shall submit to the
Secretary a proposal that describes the proposed
research, development, or demonstration activity to be
conducted by the partnership.
(B) Review.--After reviewing the scientific,
technical, and commercial merit of a proposals submitted
under subparagraph (A), the Secretary shall approve or
disapprove the proposal.
(C) Competitive awards.--The provision of funding
under this subsection shall be on a competitive basis.
(4) Cost-sharing requirement.--In carrying out this section,
the Secretary shall require cost sharing in accordance with
section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

(d) Grants.--The Secretary may award competitive grants for
innovative technology research, development and demonstrations to
universities, individual inventors, and small companies, based on energy
savings potential, commercial viability, and technical merit.
(e) Institution of Higher Education-Based Industrial Research and
Assessment Centers.--The Secretary shall provide funding to institution
of higher education-based industrial research and assessment centers,
whose purpose shall be--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance;
(2) to promote applications of emerging concepts and
technologies in small- and medium-sized manufacturers;
(3) to promote research and development for the use of
alternative energy sources to supply heat, power, and new
feedstocks for energy-intensive industries;
(4) to coordinate with appropriate Federal and State
research offices, and provide a clearinghouse for industrial
process and energy efficiency technical assistance resources;
and

[[Page 1637]]
121 STAT. 1637

(5) to coordinate with State-accredited technical training
centers and community colleges, while ensuring appropriate
services to all regions of the United States.

(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal year 2013
and each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made available
under paragraph (1), not less than 50 percent shall be used to
pay the Federal share of partnership activities under subsection
(c).
(3) Coordination and nonduplication.--The Secretary shall
coordinate efforts under this section with other programs of the
Department and other Federal agencies to avoid duplication of
effort.

SEC. 453. [NOTE: 42 USC 17112. ENERGY EFFICIENCY FOR DATA CENTER
BUILDINGS.

(a) Definitions.--In this section:
(1) Data center.--The term ``data center'' means any
facility that primarily contains electronic equipment used to
process, store, and transmit digital information, which may be--
(A) a free-standing structure; or
(B) a facility within a larger structure, that uses
environmental control equipment to maintain the proper
conditions for the operation of electronic equipment.
(2) Data center operator.--The term ``data center operator''
means any person or government entity that builds or operates a
data center or purchases data center services, equipment, and
facilities.

(b) Voluntary National Information Program.--
(1) In general.--Not [NOTE: Deadline. later than 90 days
after the date of enactment of this Act, the Secretary and the
Administrator of the Environmental Protection Agency shall,
after consulting with information technology industry and other
interested parties, initiate a voluntary national information
program for those types of data centers and data center
equipment and facilities that are widely used and for which
there is a potential for significant data center energy savings
as a result of the program.
(2) Requirements.--The program described in paragraph (1)
shall--
(A) address data center efficiency holistically,
reflecting the total energy consumption of data centers
as whole systems, including both equipment and
facilities;
(B) consider prior work and studies undertaken in
this area, including by the Environmental Protection
Agency and the Department of Energy;
(C) consistent with the objectives described in
paragraph (1), determine the type of data center and
data

[[Page 1638]]
121 STAT. 1638

center equipment and facilities to be covered under the
program;
(D) produce specifications, measurements, best
practices, and benchmarks that will enable data center
operators to make more informed decisions about the
energy efficiency and costs of data centers, and that
take into account--
(i) the performance and use of servers, data
storage devices, and other information technology
equipment;
(ii) the efficiency of heating, ventilation,
and air conditioning, cooling, and power
conditioning systems, provided that no
modification shall be required of a standard then
in effect under the Energy Policy and Conservation
Act (42 U.S.C. 6201 et seq.) for any covered
heating, ventilation, air-conditioning, cooling or
power-conditioning product;
(iii) energy savings from the adoption of
software and data management techniques; and
(iv) other factors determined by the
organization described in subsection (c);
(E) allow for creation of separate specifications,
measurements, and benchmarks based on data center size
and function, as well as other appropriate
characteristics;
(F) advance the design and implementation of
efficiency technologies to the maximum extent
economically practical;
(G) provide to data center operators in the private
sector and the Federal Government information about best
practices and purchasing decisions that reduce the
energy consumption of data centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated through
catalogs, trade publications, the Internet, or other
mechanisms, that will allow data center operators to
assess the energy consumption and potential cost savings
of alternative data centers and data center equipment
and facilities.
(3) Procedures.--The program described in paragraph (1)
shall be developed in consultation with and coordinated by the
organization described in subsection (c) according to commonly
accepted procedures for the development of specifications,
measurements, and benchmarks.

(c) Data Center Efficiency Organization.--
(1) In general.--After the establishment of the program
described in subsection (b), the Secretary and the Administrator
shall jointly designate an information technology industry
organization to consult with and to coordinate the program.
(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed specifically for
the purposes of subsection (b), shall--
(A) consist of interested parties that have
expertise in energy efficiency and in the development,
operation, and functionality of computer data centers,
information technology equipment, and software, as well
as representatives of hardware manufacturers, data
center operators, and facility managers;
(B) obtain and address input from Department of
Energy National Laboratories or any college, university,
research institution, industry association, company, or

[[Page 1639]]
121 STAT. 1639

public interest group with applicable expertise in any
of the areas listed in paragraph (1);
(C) follow commonly accepted procedures for the
development of specifications and accredited standards
development processes;
(D) have a mission to develop and promote energy
efficiency for data centers and information technology;
and
(E) have the primary responsibility to consult in
the development and publishing of the information,
measurements, and benchmarks described in subsection (b)
and transmission of the information to the Secretary and
the Administrator for consideration under subsection
(d).

(d) Measurements and Specifications.--
(1) In general.--The Secretary and the Administrator shall
consider the specifications, measurements, and benchmarks
described in subsection (b) for use by the Federal Energy
Management Program, the Energy Star Program, and other
efficiency programs of the Department of Energy and
Environmental Protection Agency, respectively.
(2) Rejections.--If the Secretary or the Administrator
rejects 1 or more specifications, measurements, or benchmarks
described in subsection (b), the rejection shall be made
consistent with section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; Public
Law 104-113).
(3) Determination of impracticability.--A determination that
a specification, measurement, or benchmark described in
subsection (b) is impractical may include consideration of the
maximum efficiency that is technologically feasible and
economically justified.

(e) Monitoring.--The Secretary and the Administrator shall--
(1) monitor and evaluate the efforts to develop the program
described in subsection (b); and
(2) [NOTE: Deadline. not later than 3 years after the
date of enactment of this Act, make a determination as to
whether the program is consistent with the objectives of
subsection (b).

(f) Alternative System.--If [NOTE: Deadline. the Secretary and
the Administrator make a determination under subsection (e) that a
voluntary national information program for data centers consistent with
the objectives of subsection (b) has not been developed, the Secretary
and the Administrator shall, after consultation with the National
Institute of Standards and Technology and not later than 2 years after
the determination, develop and implement the program under subsection
(b).

(g) Protection of Proprietary Information.--The Secretary, the
Administrator, or the data center efficiency organization shall not
disclose any proprietary information or trade secrets provided by any
individual or company for the purposes of carrying out this section or
the program established under this section.

[[Page 1640]]
121 STAT. 1640

Subtitle E--Healthy High-Performance Schools

SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.

(a) Amendment.--The Toxic Substances Control Act (15 U.S.C. 2601 et
seq.) is amended by adding at the end the following new title:

``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

``SEC. 501. [NOTE: 15 USC 2695. GRANTS FOR HEALTHY SCHOOL
ENVIRONMENTS.

``(a) In General.--The Administrator, in consultation with the
Secretary of Education, may provide grants to States for use in--
``(1) providing technical assistance for programs of the
Environmental Protection Agency (including the Tools for Schools
Program and the Healthy School Environmental Assessment Tool) to
schools for use in addressing environmental issues; and
``(2) development and implementation of State school
environmental health programs that include--
``(A) standards for school building design,
construction, and renovation; and
``(B) identification of ongoing school building
environmental problems, including contaminants,
hazardous substances, and pollutant emissions, in the
State and recommended solutions to address those
problems, including assessment of information on the
exposure of children to environmental hazards in school
facilities.

``(b) Sunset.--The authority of the Administrator to carry out this
section shall expire 5 years after the date of enactment of this
section.

``SEC. 502. [NOTE: 15 USC 2695a. MODEL GUIDELINES FOR SITING OF
SCHOOL FACILITIES.

``Not [NOTE: Deadline. later than 18 months after the date of
enactment of this section, the Administrator, in consultation with the
Secretary of Education and the Secretary of Health and Human Services,
shall issue voluntary school site selection guidelines that account
for--
``(1) the special vulnerability of children to hazardous
substances or pollution exposures in any case in which the
potential for contamination at a potential school site exists;
``(2) modes of transportation available to students and
staff;
``(3) the efficient use of energy; and
``(4) the potential use of a school at the site as an
emergency shelter.

``SEC. 503. [NOTE: 15 USC 2695b. PUBLIC OUTREACH.

``(a) Reports.--The [NOTE: Publication. Administrator shall
publish and submit to Congress an annual report on all activities
carried out under this title, until the expiration of authority
described in section 501(b).

``(b) Public Outreach.--The Federal Director appointed under section
436(a) of the Energy Independence and Security Act of 2007 (in this
title referred to as the `Federal Director') shall ensure,

[[Page 1641]]
121 STAT. 1641

to the maximum extent practicable, that the public clearinghouse
established under section 423(1) of the Energy Independence and Security
Act of 2007 receives and makes available information on the exposure of
children to environmental hazards in school facilities, as provided by
the Administrator.

``SEC. 504. [NOTE: 15 USC 2695c. ENVIRONMENTAL HEALTH PROGRAM.

``(a) In General.--Not [NOTE: Deadline. later than 2 years after
the date of enactment of this section, the Administrator, in
consultation with the Secretary of Education, the Secretary of Health
and Human Services, and other relevant agencies, shall issue voluntary
guidelines for use by the State in developing and implementing an
environmental health program for schools that--
``(1) takes into account the status and findings of Federal
initiatives established under this title or subtitle C of title
IV of the Energy Independence and Security Act of 2007 and other
relevant Federal law with respect to school facilities,
including relevant updates on trends in the field, such as the
impact of school facility environments on student and staff--
``(A) health, safety, and productivity; and
``(B) disabilities or special needs;
``(2) takes into account studies using relevant tools
identified or developed in accordance with section 492 of the
Energy Independence and Security Act of 2007;
``(3) takes into account, with respect to school facilities,
each of--
``(A) environmental problems, contaminants,
hazardous substances, and pollutant emissions,
including--
``(i) lead from drinking water;
``(ii) lead from materials and products;
``(iii) asbestos;
``(iv) radon;
``(v) the presence of elemental mercury
releases from products and containers;
``(vi) pollutant emissions from materials and
products; and
``(vii) any other environmental problem,
contaminant, hazardous substance, or pollutant
emission that present or may present a risk to the
health of occupants of the school facilities or
environment;
``(B) natural day lighting;
``(C) ventilation choices and technologies;
``(D) heating and cooling choices and technologies;
``(E) moisture control and mold;
``(F) maintenance, cleaning, and pest control
activities;
``(G) acoustics; and
``(H) other issues relating to the health, comfort,
productivity, and performance of occupants of the school
facilities;
``(4) provides technical assistance on siting, design,
management, and operation of school facilities, including
facilities used by students with disabilities or special needs;
``(5) collaborates with federally funded pediatric
environmental health centers to assist in on-site school
environmental investigations;
``(6) assists States and the public in better understanding
and improving the environmental health of children; and

[[Page 1642]]
121 STAT. 1642

``(7) takes into account the special vulnerability of
children in low-income and minority communities to exposures
from contaminants, hazardous substances, and pollutant
emissions.

``(b) Public Outreach.--The Federal Director and Commercial Director
shall ensure, to the maximum extent practicable, that the public
clearinghouse established under section 423 of the Energy Independence
and Security Act of 2007 receives and makes available--
``(1) information from the Administrator that is contained
in the report described in section 503(a); and
``(2) information on the exposure of children to
environmental hazards in school facilities, as provided by the
Administrator.

``SEC. 505. [NOTE: 15 USC 2695d. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this title
$1,000,000 for fiscal year 2009, and $1,500,000 for each of fiscal years
2010 through 2013, to remain available until expended.''.
(b) Table of Contents Amendment.--The table of contents for the
Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is amended by
adding at the end the following:

``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.

SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.

(a) In General.--The [NOTE: Contracts. Administrator of the
Environmental Protection Agency shall enter into an arrangement with the
Secretary of Education and the Secretary of Energy to conduct a detailed
study of how sustainable building features such as energy efficiency
affect multiple perceived indoor environmental quality stressors on
students in K-12 schools.

(b) Contents.--The study shall--
(1) investigate the combined effect building stressors such
as heating, cooling, humidity, lighting, and acoustics have on
building occupants' health, productivity, and overall well-
being;
(2) identify how sustainable building features, such as
energy efficiency, are influencing these human outcomes singly
and in concert; and
(3) ensure that the impacts of the indoor environmental
quality are evaluated as a whole.

(c) Authorization of Appropriations.--There are authorized to be
appropriated for carrying out this section $200,000 for each of the
fiscal years 2008 through 2012.

Subtitle F--Institutional Entities

SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR
INSTITUTIONS.

Part G of title III of the Energy Policy and Conservation Act is
amended by inserting after section 399 (42 U.S.C. 6371h) the following:

[[Page 1643]]
121 STAT. 1643

``SEC. 399A. ENERGY [NOTE: 42 USC 6371h-1. SUSTAINABILITY AND
EFFICIENCY GRANTS AND LOANS FOR INSTITUTIONS.

``(a) Definitions.--In this section:
``(1) Combined heat and power.--The term `combined heat and
power' means the generation of electric energy and heat in a
single, integrated system, with an overall thermal efficiency of
60 percent or greater on a higher-heating-value basis.
``(2) District energy systems.--The term `district energy
systems' means systems providing thermal energy from a renewable
energy source, thermal energy source, or highly efficient
technology to more than 1 building or fixed energy-consuming use
from 1 or more thermal-energy production facilities through
pipes or other means to provide space heating, space
conditioning, hot water, steam, compression, process energy, or
other end uses for that energy.
``(3) Energy sustainability.--The term `energy
sustainability' includes using a renewable energy source,
thermal energy source, or a highly efficient technology for
transportation, electricity generation, heating, cooling,
lighting, or other energy services in fixed installations.
``(4) Institution of higher education.--The term
`institution of higher education' has the meaning given the term
in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).
``(5) Institutional entity.--The term `institutional entity'
means an institution of higher education, a public school
district, a local government, a municipal utility, or a designee
of 1 of those entities.
``(6) Renewable energy source.--The term `renewable energy
source' has the meaning given the term in section 609 of the
Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c).
``(7) Sustainable energy infrastructure.--The term
`sustainable energy infrastructure' means--
``(A) facilities for production of energy from
renewable energy sources, thermal energy sources, or
highly efficient technologies, including combined heat
and power or other waste heat use; and
``(B) district energy systems.
``(8) Thermal energy source.--The term `thermal energy
source' means--
``(A) a natural source of cooling or heating from
lake or ocean water; and
``(B) recovery of useful energy that would otherwise
be wasted from ongoing energy uses.

``(b) Technical Assistance Grants.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall implement a program of
information dissemination and technical assistance to
institutional entities to assist the institutional entities in
identifying, evaluating, designing, and implementing sustainable
energy infrastructure projects in energy sustainability.
``(2) Assistance.--The Secretary shall support institutional
entities in--
``(A) identification of opportunities for
sustainable energy infrastructure;
``(B) understanding the technical and economic
characteristics of sustainable energy infrastructure;

[[Page 1644]]
121 STAT. 1644

``(C) utility interconnection and negotiation of
power and fuel contracts;
``(D) understanding financing alternatives;
``(E) permitting and siting issues;
``(F) obtaining case studies of similar and
successful sustainable energy infrastructure systems;
and
``(G) reviewing and obtaining computer software for
assessment, design, and operation and maintenance of
sustainable energy infrastructure systems.
``(3) Eligible costs for technical assistance grants.--On
receipt of an application of an institutional entity, the
Secretary may make grants to the institutional entity to fund a
portion of the cost of--
``(A) feasibility studies to assess the potential
for implementation or improvement of sustainable energy
infrastructure;
``(B) analysis and implementation of strategies to
overcome barriers to project implementation, including
financial, contracting, siting, and permitting barriers;
and
``(C) detailed engineering of sustainable energy
infrastructure.

``(c) Grants for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants
to institutional entities to carry out projects to
improve energy efficiency on the grounds and facilities
of the institutional entity.
``(B) Requirement.--To the extent that applications
have been submitted, grants under subparagraph (A) shall
include not less than 1 grant each year to an
institution of higher education in each State.
``(C) Minimum funding.--Not less than 50 percent of
the total funding for all grants under this subsection
shall be awarded in grants to institutions of higher
education.
``(2) Criteria.--Evaluation of projects for grant funding
shall be based on criteria established by the Secretary,
including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and
other air emissions, including criteria air pollutants
and ozone-depleting refrigerants;
``(C) increased use of renewable energy sources or
thermal energy sources;
``(D) reduction in consumption of fossil fuels;
``(E) active student participation; and
``(F) need for funding assistance.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree--
``(A) to implement a public awareness campaign
concerning the project in the community in which the
institutional entity is located; and
``(B) to submit to the Secretary, and make available
to the public, reports on any efficiency improvements,
energy cost savings, and environmental benefits achieved
as part of a project carried out under paragraph (1),

[[Page 1645]]
121 STAT. 1645

including quantification of the results relative to the
criteria described under paragraph (2).

``(d) Grants for Innovation in Energy Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants
to institutional entities to engage in innovative energy
sustainability projects.
``(B) Requirement.--To the extent that applications
have been submitted, grants under subparagraph (A) shall
include not less than 2 grants each year to institutions
of higher education in each State.
``(C) Minimum funding.--Not less than 50 percent of
the total funding for all grants under this subsection
shall be awarded in grants to institutions of higher
education.
``(2) Innovation projects.--An innovation project carried
out with a grant under this subsection shall--
``(A) involve--
``(i) an innovative technology that is not yet
commercially available; or
``(ii) available technology in an innovative
application that maximizes energy efficiency and
sustainability;
``(B) have the greatest potential for testing or
demonstrating new technologies or processes; and
``(C) to the extent undertaken by an institution of
higher education, ensure active student participation in
the project, including the planning, implementation,
evaluation, and other phases of projects.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree to submit
to the Secretary, and make available to the public, reports that
describe the results of the projects carried out using grant
funds.

``(e) Allocation to Institutions of Higher Education With Small
Endowments.--
``(1) In general.--Of the total amount of grants provided to
institutions of higher education for a fiscal year under this
section, the Secretary shall provide not less than 50 percent of
the amount to institutions of higher education that have an
endowment of not more than $100,000,000.
``(2) Requirement.--To the extent that applications have
been submitted, at least 50 percent of the amount described in
paragraph (1) shall be provided to institutions of higher
education that have an endowment of not more than $50,000,000.

``(f) Grant Amounts.--
``(1) In general.--If the Secretary determines that cost
sharing is appropriate, the amounts of grants provided under
this section shall be limited as provided in this subsection.
``(2) Technical assistance grants.--In the case of grants
for technical assistance under subsection (b), grant funds shall
be available for not more than--
``(A) an amount equal to the lesser of--
``(i) $50,000; or
``(ii) 75 percent of the cost of feasibility
studies to assess the potential for implementation
or improvement of sustainable energy
infrastructure;

[[Page 1646]]
121 STAT. 1646

``(B) an amount equal to the lesser of--
``(i) $90,000; or
``(ii) 60 percent of the cost of guidance on
overcoming barriers to project implementation,
including financial, contracting, siting, and
permitting barriers; and
``(C) an amount equal to the lesser of--
``(i) $250,000; or
``(ii) 40 percent of the cost of detailed
engineering and design of sustainable energy
infrastructure.
``(3) Grants for efficiency improvement and energy
sustainability.--In the case of grants for efficiency
improvement and energy sustainability under subsection (c),
grant funds shall be available for not more than an amount equal
to the lesser of--
``(A) $1,000,000; or
``(B) 60 percent of the total cost.
``(4) Grants for innovation in energy sustainability.--In
the case of grants for innovation in energy sustainability under
subsection (d), grant funds shall be available for not more than
an amount equal to the lesser of--
``(A) $500,000; or
``(B) 75 percent of the total cost.

``(g) Loans for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall provide loans to
institutional entities for the purpose of implementing energy
efficiency improvements and sustainable energy infrastructure.
``(2) Terms and conditions.--
``(A) In general.--Except as otherwise provided in
this paragraph, loans made under this subsection shall
be on such terms and conditions as the Secretary may
prescribe.
``(B) Maturity.--The final maturity of loans made
within a period shall be the lesser of, as determined by
the Secretary--
``(i) 20 years; or
``(ii) 90 percent of the useful life of the
principal physical asset to be financed by the
loan.
``(C) Default.--No loan made under this subsection
may be subordinated to another debt contracted by the
institutional entity or to any other claims against the
institutional entity in the case of default.
``(D) Benchmark interest rate.--
``(i) In general.--Loans under this subsection
shall be at an interest rate that is set by
reference to a benchmark interest rate (yield) on
marketable Treasury securities with a similar
maturity to the direct loans being made.
``(ii) Minimum.--The minimum interest rate of
loans under this subsection shall be at the
interest rate of the benchmark financial
instrument.
``(iii) New loans.--The minimum interest rate
of new loans shall be adjusted each quarter to
take account of changes in the interest rate of
the benchmark financial instrument.

[[Page 1647]]
121 STAT. 1647

``(E) Credit risk.--The Secretary shall--
``(i) prescribe explicit standards for use in
periodically assessing the credit risk of making
direct loans under this subsection; and
``(ii) find that there is a reasonable
assurance of repayment before making a loan.
``(F) Advance budget authority required.--New direct
loans may not be obligated under this subsection except
to the extent that appropriations of budget authority to
cover the costs of the new direct loans are made in
advance, as required by section 504 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c).
``(3) Criteria.--Evaluation of projects for potential loan
funding shall be based on criteria established by the Secretary,
including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and
other air emissions, including criteria air pollutants
and ozone-depleting refrigerants;
``(C) increased use of renewable electric energy
sources or renewable thermal energy sources;
``(D) reduction in consumption of fossil fuels; and
``(E) need for funding assistance, including
consideration of the size of endowment or other
financial resources available to the institutional
entity.
``(4) Labor standards.--
``(A) In general.--All laborers and mechanics
employed by contractors or subcontractors in the
performance of construction, repair, or alteration work
funded in whole or in part under this section shall be
paid wages at rates not less than those prevailing on
projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with
sections 3141 through 3144, 3146, and 3147 of title 40,
United States Code. The Secretary shall not approve any
such funding without first obtaining adequate assurance
that required labor standards will be maintained upon
the construction work.
``(B) Authority and functions.--The Secretary of
Labor shall have, with respect to the labor standards
specified in paragraph (1), the authority and functions
set forth in Reorganization Plan Number 14 of 1950 (15
Fed. Reg. 3176; 64 Stat. 1267) and section 3145 of title
40, United States Code.

``(h) Program Procedures.--Not [NOTE: Deadline. later than 180
days after the date of enactment of this section, the Secretary shall
establish procedures for the solicitation and evaluation of potential
projects for grant and loan funding and administration of the grant and
loan programs.

``(i) Authorization.--
``(1) Grants.--There is authorized to be appropriated for
the cost of grants authorized in subsections (b), (c), and (d)
$250,000,000 for each of fiscal years 2009 through 2013, of
which not more than 5 percent may be used for administrative
expenses.
``(2) Loans.--There is authorized to be appropriated for the
initial cost of direct loans authorized in subsection (g)
$500,000,000 for each of fiscal years 2009 through 2013, of

[[Page 1648]]
121 STAT. 1648

which not more than 5 percent may be used for administrative
expenses.''.

Subtitle G--Public and Assisted Housing

SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION CODE TO
PUBLIC AND ASSISTED HOUSING.

Section 109 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(C), by striking, ``, where such
standards are determined to be cost effective by the
Secretary of Housing and Urban Development''; and
(B) in the first sentence of paragraph (2)--
(i) by striking ``Council of American Building
Officials Model Energy Code, 1992'' and inserting
``2006 International Energy Conservation Code'';
and
(ii) by striking ``, and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States
Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(2) in subsection (b)--
(A) in the heading, by striking ``Model Energy
Code.--'' and inserting ``International Energy
Conservation Code.--'';
(B) by inserting ``and rehabilitation'' after ``all
new construction''; and
(C) by striking ``, and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of
1937 (42 U.S.C. 1437v), the 2003 International Energy
Conservation Code'';
(3) in subsection (c)--
(A) in the heading, by striking ``Model Energy Code
and''; and
(B) by striking ``, or, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of
1937 (42 U.S.C. 1437v), the 2003 International Energy
Conservation Code'';
(4) by adding at the end the following:

``(d) Failure To Amend the Standards.--If [NOTE: Deadline. the
Secretary of Housing and Urban Development and the Secretary of
Agriculture have not, within 1 year after the requirements of the 2006
IECC or the ASHRAE Standard 90.1-2004 are revised, amended the standards
or made a determination under subsection (c), all new construction and
rehabilitation of housing specified in subsection (a) shall meet the
requirements of the revised code or standard if--
``(1) the Secretary of Housing and Urban Development or the
Secretary of Agriculture make a determination that the revised
codes do not negatively affect the availability or affordability
of new construction of assisted housing and single family and
multifamily residential housing (other than manufactured

[[Page 1649]]
121 STAT. 1649

homes) subject to mortgages insured under the National Housing
Act (12 U.S.C. 1701 et seq.) or 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.), respectively; and
``(2) the Secretary of Energy has made a determination under
section 304 of the Energy Conservation and Production Act (42
U.S.C. 6833) that the revised code or standard would improve
energy efficiency.'';
(5) by striking ``CABO Model Energy Code, 1992'' each place
it appears and inserting ``the 2006 IECC''; and
(6) by striking ``1989'' each place it appears and inserting
``2004''.

Subtitle H--General Provisions

SEC. 491. [NOTE: 42 USC 17121. DEMONSTRATION PROJECT.

(a) In General.--The [NOTE: Guidelines. Federal Director and the
Commercial Director shall establish guidelines to implement a
demonstration project to contribute to the research goals of the Office
of Commercial High-Performance Green Buildings and the Office of Federal
High-Performance Green Buildings.

(b) Projects.--In accordance with guidelines established by the
Federal Director and the Commercial Director under subsection (a) and
the duties of the Federal Director and the Commercial Director described
in this title, the Federal Director or the Commercial Director shall
carry out--
(1) for each of fiscal years 2009 through 2014, 1
demonstration project per year of green features in a Federal
building selected by the Federal Director in accordance with
relevant agencies and described in subsection (c)(1), that--
(A) provides for instrumentation, monitoring, and
data collection related to the green features, for study
of the impact of the features on overall energy use and
operational costs, and for the evaluation of the
information obtained through the conduct of projects and
activities under this title; and
(B) achieves the highest rating offered by the high
performance green building system identified pursuant to
section 436(h);
(2) no fewer than 4 demonstration projects at 4
universities, that, as competitively selected by the Commercial
Director in accordance with subsection (c)(2), have--
(A) appropriate research resources and relevant
projects to meet the goals of the demonstration project
established by the Office of Commercial High-Performance
Green Buildings; and
(B) the ability--
(i) to serve as a model for high-performance
green building initiatives, including research and
education by achieving the highest rating offered
by the high performance green building system
identified pursuant to section 436(h);
(ii) to identify the most effective ways to
use high-performance green building and landscape
technologies

[[Page 1650]]
121 STAT. 1650

to engage and educate undergraduate and graduate
students;
(iii) to effectively implement a high-
performance green building education program for
students and occupants;
(iv) to demonstrate the effectiveness of
various high-performance technologies, including
their impacts on energy use and operational costs,
in each of the 4 climatic regions of the United
States described in subsection (c)(2)(B); and
(v) to explore quantifiable and
nonquantifiable beneficial impacts on public
health and employee and student performance;
(3) demonstration projects to evaluate replicable approaches
of achieving high performance in actual building operation in
various types of commercial buildings in various climates; and
(4) deployment activities to disseminate information on and
encourage widespread adoption of technologies, practices, and
policies to achieve zero-net-energy commercial buildings or low
energy use and effective monitoring of energy use in commercial
buildings.

(c) Criteria.--
(1) Federal facilities.--With respect to the existing or
proposed Federal facility at which a demonstration project under
this section is conducted, the Federal facility shall--
(A) be an appropriate model for a project relating
to--
(i) the effectiveness of high-performance
technologies;
(ii) analysis of materials, components,
systems, and emergency operations in the building,
and the impact of those materials, components, and
systems, including the impact on the health of
building occupants;
(iii) life-cycle costing and life-cycle
assessment of building materials and systems; and
(iv) location and design that promote access
to the Federal facility through walking, biking,
and mass transit; and
(B) possess sufficient technological and
organizational adaptability.
(2) Universities.--With respect to the 4 universities at
which a demonstration project under this section is conducted--
(A) the universities should be selected, after
careful review of all applications received containing
the required information, as determined by the
Commercial Director, based on--
(i) successful and established public-private
research and development partnerships;
(ii) demonstrated capabilities to construct or
renovate buildings that meet high indoor
environmental quality standards;
(iii) organizational flexibility;
(iv) technological adaptability;
(v) the demonstrated capacity of at least 1
university to replicate lessons learned among
nearby or sister universities, preferably by
participation in groups or consortia that promote
sustainability;

[[Page 1651]]
121 STAT. 1651

(vi) the demonstrated capacity of at least 1
university to have officially-adopted,
institution-wide ``high-performance green
building'' guidelines for all campus building
projects; and
(vii) the demonstrated capacity of at least 1
university to have been recognized by similar
institutions as a national leader in
sustainability education and curriculum for
students of the university; and
(B) each university shall be located in a different
climatic region of the United States, each of which
regions shall have, as determined by the Office of
Commercial High-Performance Green Buildings--
(i) a hot, dry climate;
(ii) a hot, humid climate;
(iii) a cold climate; or
(iv) a temperate climate (including a climate
with cold winters and humid summers).

(d) Applications.--To receive a grant under subsection (b), an
eligible applicant shall submit to the Federal Director or the
Commercial Director an application at such time, in such manner, and
containing such information as the Director may require, including a
written assurance that all laborers and mechanics employed by
contractors or subcontractors during construction, alteration, or repair
that is financed, in whole or in part, by a grant under this section
shall be paid wages at rates not less than those prevailing on similar
construction in the locality, as determined by the Secretary of Labor in
accordance with sections 3141 through 3144, 3146, and 3147 of title 40,
United States Code. The Secretary of Labor shall, with respect to the
labor standards described in this subsection, have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C.
App.) and section 3145 of title 40, United States Code.
(e) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter through September 30, 2014--
(1) the Federal Director and the Commercial Director shall
submit to the Secretary a report that describes the status of
the demonstration projects; and
(2) each University at which a demonstration project under
this section is conducted shall submit to the Secretary a report
that describes the status of the demonstration projects under
this section.

(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the demonstration project described in section
(b)(1), $10,000,000 for the period of fiscal years 2008 through 2012,
and to carry out the demonstration project described in section (b)(2),
$10,000,000 for the period of fiscal years 2008 through 2012, to remain
available until expended.

SEC. 492. [NOTE: 42 USC 17122. RESEARCH AND DEVELOPMENT.

(a) Establishment.--The Federal Director and the Commercial
Director, jointly and in coordination with the Advisory Committee,
shall--
(1)(A) survey existing research and studies relating to
high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green building
research plan that--

[[Page 1652]]
121 STAT. 1652

(A) identifies information and research needs,
including the relationships between human health,
occupant productivity, safety, security, and
accessibility and each of--
(i) emissions from materials and products in
the building;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating, cooling, and system control
choices and technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control
activities;
(vii) acoustics;
(viii) access to public transportation; and
(ix) other issues relating to the health,
comfort, productivity, and performance of
occupants of the building;
(B) promotes the development and dissemination of
high-performance green building measurement tools that,
at a minimum, may be used--
(i) to monitor and assess the life-cycle
performance of facilities (including demonstration
projects) built as high-performance green
buildings; and
(ii) to perform life-cycle assessments; and
(C) identifies and tests new and emerging
technologies for high-performance green buildings;
(3) assist the budget and life-cycle costing functions of
the Directors' Offices under section 436(d);
(4) study and identify potential benefits of green buildings
relating to security, natural disaster, and emergency needs of
the Federal Government; and
(5) support other research initiatives determined by the
Directors' Offices.

(b) Indoor Air Quality.--The Federal Director, in consultation with
the Administrator of the Environmental Protection Agency and the
Advisory Committee, shall develop and carry out a comprehensive indoor
air quality program for all Federal facilities to ensure the safety of
Federal workers and facility occupants--
(1) during new construction and renovation of facilities;
and
(2) in existing facilities.

SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT PROGRAM
FOR LOCAL GOVERNMENTS.

Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is amended
by adding at the end the following:

``SEC. 329. [NOTE: 42 USC 7628. DEMONSTRATION GRANT PROGRAM FOR LOCAL
GOVERNMENTS.

``(a) Grant Program.--
``(1) In general.--The Administrator shall establish a
demonstration program under which the Administrator shall
provide competitive grants to assist local governments (such as
municipalities and counties), with respect to local government
buildings--
``(A) to deploy cost-effective technologies and
practices; and

[[Page 1653]]
121 STAT. 1653

``(B) to achieve operational cost savings, through
the application of cost-effective technologies and
practices, as verified by the Administrator.
``(2) Cost sharing.--
``(A) In general.--The Federal share of the cost of
an activity carried out using a grant provided under
this section shall be 40 percent.
``(B) Waiver of non-federal share.--The
Administrator may waive up to 100 percent of the local
share of the cost of any grant under this section should
the Administrator determine that the community is
economically distressed, pursuant to objective economic
criteria established by the Administrator in published
guidelines.
``(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.

``(b) Guidelines.--
``(1) In general.--Not [NOTE: Deadline. later than 1 year
after the date of enactment of this section, the Administrator
shall issue guidelines to implement the grant program
established under subsection (a).
``(2) Requirements.--The guidelines under paragraph (1)
shall establish--
``(A) standards for monitoring and verification of
operational cost savings through the application of
cost-effective technologies and practices reported by
grantees under this section;
``(B) standards for grantees to implement training
programs, and to provide technical assistance and
education, relating to the retrofit of buildings using
cost-effective technologies and practices; and
``(C) a requirement that each local government that
receives a grant under this section shall achieve
facility-wide cost savings, through renovation of
existing local government buildings using cost-effective
technologies and practices, of at least 40 percent as
compared to the baseline operational costs of the
buildings before the renovation (as calculated assuming
a 3-year, weather-normalized average).

``(c) Compliance With State and Local Law.--Nothing in this section
or any program carried out using a grant provided under this section
supersedes or otherwise affects any State or local law, to the extent
that the State or local law contains a requirement that is more
stringent than the relevant requirement of this section.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2007 through 2012.
``(e) Reports.--
``(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions taken
and recommendations made under this section, and any
recommendations for further action.
``(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings, a
summary of total cost savings achieved, and recommendations for
further action.

[[Page 1654]]
121 STAT. 1654

``(f) Termination.--The program under this section shall terminate
on September 30, 2012.
``(g) Definitions.--In this section, the terms `cost-effective
technologies and practices' and `operating cost savings' shall have the
meanings defined in section 401 of the Energy Independence and Security
Act of 2007.''.

SEC. 494. [NOTE: 42 USC 17123. GREEN BUILDING ADVISORY COMMITTEE.

(a) Establishment.--Not [NOTE: Deadline. later than 180 days
after the date of enactment of this Act, the Federal Director, in
coordination with the Commercial Director, shall establish an advisory
committee, to be known as the ``Green Building Advisory Committee''.

(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section 421(e); and
(B) other relevant agencies and entities, as
determined by the Federal Director, including at least 1
representative of each of--
(i) State and local governmental green
building programs;
(ii) independent green building associations
or councils;
(iii) building experts, including architects,
material suppliers, and construction contractors;
(iv) security advisors focusing on national
security needs, natural disasters, and other dire
emergency situations;
(v) public transportation industry experts;
and
(vi) environmental health experts, including
those with experience in children's health.
(2) Non-federal members.--The total number of non-Federal
members on the Committee at any time shall not exceed 15.

(c) Meetings.--The Federal Director shall establish a regular
schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and expertise for
use by the Federal Director in carrying out the duties under this
subtitle, including such recommendations relating to Federal activities
carried out under sections 434 through 436 as are agreed to by a
majority of the members of the Committee.
(e) FACA Exemption.--The Committee shall not be subject to section
14 of the Federal Advisory Committee Act (5 U.S.C. App.).

SEC. 495. [NOTE: 42 USC 17124. ADVISORY COMMITTEE ON ENERGY
EFFICIENCY FINANCE.

(a) Establishment.--The Secretary, acting through the Assistant
Secretary of Energy for Energy Efficiency and Renewable Energy, shall
establish an Advisory Committee on Energy Efficiency Finance to provide
advice and recommendations to the Department on energy efficiency
finance and investment issues, options, ideas, and trends, and to assist
the energy community in identifying practical ways of lowering costs and
increasing investments in energy efficiency technologies.
(b) Membership.--The advisory committee established under this
section shall have a balanced membership that shall include members with
expertise in--
(1) availability of seed capital;

[[Page 1655]]
121 STAT. 1655

(2) availability of venture capital;
(3) availability of other sources of private equity;
(4) investment banking with respect to corporate finance;
(5) investment banking with respect to mergers and
acquisitions;
(6) equity capital markets;
(7) debt capital markets;
(8) research analysis;
(9) sales and trading;
(10) commercial lending; and
(11) residential lending.

(c) Termination.--The Advisory Committee on Energy Efficiency
Finance shall terminate on the date that is 10 years after the date of
enactment of this Act.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to the Secretary for carrying
out this section.

TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

Subtitle A--United States Capitol Complex

SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDIES.

(a) Studies.--The Architect of the Capitol may conduct feasibility
studies regarding construction of photovoltaic roofs for the Rayburn
House Office Building and the Hart Senate Office Building.
(b) Report.--Not later than 6 months after the date of enactment of
this Act, the Architect of the Capitol shall transmit to the Committee
on Transportation and Infrastructure of the House of Representatives and
the Committee on Rules and Administration of the Senate, a report on the
results of the feasibility studies and recommendations regarding
construction of photovoltaic roofs for the buildings referred to in
subsection (a).
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000.

SEC. 502. [NOTE: 2 USC 2169. CAPITOL COMPLEX E-85 REFUELING STATION.

(a) Construction.--The Architect of the Capitol may construct a fuel
tank and pumping system for E-85 fuel at or within close proximity to
the Capitol Grounds Fuel Station.
(b) Use.--The E-85 fuel tank and pumping system shall be available
for use by all legislative branch vehicles capable of operating with E-
85 fuel, subject to such other legislative branch agencies reimbursing
the Architect of the Capitol for the costs of E-85 fuel used by such
other legislative branch vehicles.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $640,000 for fiscal year 2008.

SEC. 503. [NOTE: 2 USC 1824. ENERGY AND ENVIRONMENTAL MEASURES IN
CAPITOL COMPLEX MASTER PLAN.

(a) In General.--To the maximum extent practicable, the Architect of
the Capitol shall include energy efficiency and conservation measures,
greenhouse gas emission reduction measures, and

[[Page 1656]]
121 STAT. 1656

other appropriate environmental measures in the Capitol Complex Master
Plan.
(b) Report.--Not later than 6 months after the date of enactment of
this Act, the Architect of the Capitol shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Rules and Administration of the Senate, a report on the
energy efficiency and conservation measures, greenhouse gas emission
reduction measures, and other appropriate environmental measures
included in the Capitol Complex Master Plan pursuant to subsection (a).

SEC. 504. [NOTE: 2 USC 2162a. PROMOTING MAXIMUM EFFICIENCY IN
OPERATION OF CAPITOL POWER PLANT.

(a) Steam Boilers.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the steam boilers at
the Capitol Power Plant in the most energy efficient manner
possible to minimize carbon emissions and operating costs,
including adjusting steam pressures and adjusting the operation
of the boilers to take into account variations in demand,
including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the steps
required under paragraph (1) not later than 30 days after the
date of the enactment of this Act.

(b) Chiller Plant.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the chiller plant at
the Capitol Power Plant in the most energy efficient manner
possible to minimize carbon emissions and operating costs,
including adjusting water temperatures and adjusting the
operation of the chillers to take into account variations in
demand, including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the steps
required under paragraph (1) not later than 30 days after the
date of the enactment of this Act.

(c) Meters.--Not [NOTE: Deadline. later than 90 days after the
date of the enactment of this Act, the Architect of the Capitol shall
evaluate the accuracy of the meters in use at the Capitol Power Plant
and correct them as necessary.

(d) Report on Implementation.--Not later than 180 days after the
date of the enactment of this Act, the Architect of the Capitol shall
complete the implementation of the requirements of this section and
submit a report describing the actions taken and the energy efficiencies
achieved to the Committee on Transportation and Infrastructure of the
House of Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on House Administration of
the House of Representatives, and the Committee on Rules and
Administration of the Senate.

SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS FEASIBILITY STUDY
AND DEMONSTRATION PROJECTS.

The first section of the Act of March 4, 1911 (2 U.S.C. 2162; 36
Stat. 1414, chapter 285) is amended in the seventh undesignated
paragraph (relating to the Capitol Power Plant) under the heading
``Public Buildings'', under the heading ``Under the Department of
Interior''--
(1) by striking ``ninety thousand dollars:'' and inserting
$90,000.''; and

[[Page 1657]]
121 STAT. 1657

(2) [NOTE: 2 USC 2162. by striking ``Provided, That
hereafter the'' and all that follows through the end of the
proviso and inserting the following:

``(a) Designation.--The heating, lighting, and power plant
constructed under the terms of the Act approved April 28, 1904 (33 Stat.
479, chapter 1762) shall be known as the `Capitol Power Plant'.
``(b) Definition.--In this section, the term `carbon dioxide energy
efficiency' means the quantity of electricity used to power equipment
for carbon dioxide capture and storage or use.
``(c) Feasibility Study.--The Architect of the Capitol shall conduct
a feasibility study evaluating the available methods to capture, store,
and use carbon dioxide emitted from the Capitol Power Plant as a result
of burning fossil fuels. In carrying out the feasibility study, the
Architect of the Capitol is encouraged to consult with individuals with
expertise in carbon capture and storage or use, including experts with
the Environmental Protection Agency, Department of Energy, academic
institutions, non-profit organizations, and industry, as appropriate.
The study shall consider--
``(1) the availability of technologies to capture and store
or use Capitol Power Plant carbon dioxide emissions;
``(2) strategies to conserve energy and reduce carbon
dioxide emissions at the Capitol Power Plant; and
``(3) other factors as determined by the Architect of the
Capitol.

``(d) Demonstration Projects.--
``(1) In general.--If the feasibility study determines that
a demonstration project to capture and store or use Capitol
Power Plant carbon dioxide emissions is technologically feasible
and economically justified (including direct and indirect
economic and environmental benefits), the Architect of the
Capitol may conduct 1 or more demonstration projects to capture
and store or use carbon dioxide emitted from the Capitol Power
Plant as a result of burning fossil fuels.
``(2) Factors for consideration.--In carrying out such
demonstration projects, the Architect of the Capitol shall
consider--
``(A) the amount of Capitol Power Plant carbon
dioxide emissions to be captured and stored or used;
``(B) whether the proposed project is able to reduce
air pollutants other than carbon dioxide;
``(C) the carbon dioxide energy efficiency of the
proposed project;
``(D) whether the proposed project is able to use
carbon dioxide emissions;
``(E) whether the proposed project could be expanded
to significantly increase the amount of Capitol Power
Plant carbon dioxide emissions to be captured and stored
or used;
``(F) the potential environmental, energy, and
educational benefits of demonstrating the capture and
storage or use of carbon dioxide at the U.S. Capitol;
and
``(G) other factors as determined by the Architect
of the Capitol.

[[Page 1658]]
121 STAT. 1658

``(3) Terms and conditions.--A demonstration project funded
under this section shall be subject to such terms and conditions
as the Architect of the Capitol may prescribe.

``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the feasibility study and demonstration
project $3,000,000. Such sums shall remain available until expended.''.

Subtitle B--Energy Savings Performance Contracting

SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.

(a) In General.--Section 801(a)(2)(D) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended--
(1) in clause (ii), by inserting ``and'' after the semicolon
at the end;
(2) by striking clause (iii); and
(3) by redesignating clause (iv) as clause (iii).

(b) Reports.--Section 548(a)(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8258(a)(2)) is amended by inserting ``and any
termination penalty exposure'' after ``the energy and cost savings that
have resulted from such contracts''.
(c) Conforming Amendment.--Section 2913 of title 10, United States
Code, is amended by striking subsection (e).

SEC. 512. FINANCING FLEXIBILITY.

Section 801(a)(2) of the National Energy Conservation Policy Act (42
U.S.C. 8287(a)(2)) is amended by adding at the end the following:
``(E) Funding options.--In carrying out a contract
under this title, a Federal agency may use any
combination of--
``(i) appropriated funds; and
``(ii) private financing under an energy
savings performance contract.''.

SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE CONTRACTS AND
VERIFYING SAVINGS.

Section 801(a)(2) of the National Energy Conservation Policy Act (42
U.S.C. 8287(a)(2)) (as amended by section 512) is amended--
(1) in subparagraph (D), by inserting ``beginning on the
date of the delivery order'' after ``25 years''; and
(2) by adding at the end the following:
``(F) Promotion of contracts.--In carrying out this
section, a Federal agency shall not--
``(i) establish a Federal agency policy that
limits the maximum contract term under
subparagraph (D) to a period shorter than 25
years; or
``(ii) limit the total amount of obligations
under energy savings performance contracts or
other private financing of energy savings
measures.
``(G) Measurement and verification requirements for
private financing.--
``(i) In general.--In the case of energy
savings performance contracts, the evaluations and
savings

[[Page 1659]]
121 STAT. 1659

measurement and verification required under
paragraphs (2) and (4) of section 543(f) shall be
used by a Federal agency to meet the requirements
for the need for energy audits, calculation of
energy savings, and any other evaluation of costs
and savings needed to implement the guarantee of
savings under this section.
``(ii) Modification
of [NOTE: Deadline. existing contracts.--Not
later than 18 months after the date of enactment
of this subparagraph, each Federal agency shall,
to the maximum extent practicable, modify any
indefinite delivery and indefinite quantity energy
savings performance contracts, and other
indefinite delivery and indefinite quantity
contracts using private financing, to conform to
the amendments made by subtitle B of title V of
the Energy Independence and Security Act of
2007.''.

SEC. 514. PERMANENT REAUTHORIZATION.

Section 801 of the National Energy Conservation Policy Act (42
U.S.C. 8287) is amended by striking subsection (c).

SEC. 515. DEFINITION OF ENERGY SAVINGS.

Section 804(2) of the National Energy Conservation Policy Act (42
U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing
energy source by cogeneration or heat recovery;
``(C) if otherwise authorized by Federal or State
law (including regulations), the sale or transfer of
electrical or thermal energy generated on-site from
renewable energy sources or cogeneration, but in excess
of Federal needs, to utilities or non-Federal energy
users; and
``(D) the increased efficient use of existing water
sources in interior or exterior applications.''.

SEC. 516. RETENTION OF SAVINGS.

Section 546(c) of the National Energy Conservation Policy Act (42
U.S.C. 8256(c)) is amended by striking paragraph (5).

SEC. 517. [NOTE: 42 USC 17131. TRAINING FEDERAL CONTRACTING OFFICERS
TO NEGOTIATE ENERGY EFFICIENCY CONTRACTS.

(a) Program.--The Secretary shall create and administer in the
Federal Energy Management Program a training program to educate Federal
contract negotiation and contract management personnel so that the
contract officers are prepared to--
(1) negotiate energy savings performance contracts;
(2) conclude effective and timely contracts for energy
efficiency services with all companies offering energy
efficiency services; and

[[Page 1660]]
121 STAT. 1660

(3) review Federal contracts for all products and services
for the potential energy efficiency opportunities and
implications of the contracts.

(b) Schedule.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall plan, staff, announce, and begin training
under the Federal Energy Management Program.
(c) Personnel To Be Trained.--Personnel appropriate to receive
training under the Federal Energy Management Program shall be selected
by and sent for the training from--
(1) the Department of Defense;
(2) the Department of Veterans Affairs;
(3) the Department;
(4) the General Services Administration;
(5) the Department of Housing and Urban Development;
(6) the United States Postal Service; and
(7) all other Federal agencies and departments that enter
contracts for buildings, building services, electricity and
electricity services, natural gas and natural gas services,
heating and air conditioning services, building fuel purchases,
and other types of procurement or service contracts determined
by the Secretary, in carrying out the Federal Energy Management
Program, to offer the potential for energy savings and
greenhouse gas emission reductions if negotiated with taking
into account those goals.

(d) Trainers.--Training under the Federal Energy Management Program
may be conducted by--
(1) attorneys or contract officers with experience in
negotiating and managing contracts described in subsection
(c)(7) from any agency, except that the Secretary shall
reimburse the related salaries and expenses of the attorneys or
contract officers from amounts made available for carrying out
this section to the extent the attorneys or contract officers
are not employees of the Department; and
(2) private experts hired by the Secretary for the purposes
of this section, except that the Secretary may not hire experts
who are simultaneously employed by any company under contract to
provide energy efficiency services to the Federal Government.

(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $750,000 for
each of fiscal years 2008 through 2012.

SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS.

(a) Definitions.--In this section:
(1) Nonbuilding application.--The term ``nonbuilding
application'' means--
(A) any class of vehicles, devices, or equipment
that is transportable under the power of the applicable
vehicle, device, or equipment by land, sea, or air and
that consumes energy from any fuel source for the
purpose of--
(i) that transportation; or
(ii) maintaining a controlled environment
within the vehicle, device, or equipment; and
(B) any federally-owned equipment used to generate
electricity or transport water.
(2) Secondary savings.--

[[Page 1661]]
121 STAT. 1661

(A) In general.--The term ``secondary savings''
means additional energy or cost savings that are a
direct consequence of the energy savings that result
from the energy efficiency improvements that were
financed and implemented pursuant to an energy savings
performance contract.
(B) Inclusions.--The term ``secondary savings''
includes--
(i) energy and cost savings that result from a
reduction in the need for fuel delivery and
logistical support;
(ii) personnel cost savings and environmental
benefits; and
(iii) in the case of electric generation
equipment, the benefits of increased efficiency in
the production of electricity, including revenues
received by the Federal Government from the sale
of electricity so produced.

(b) Study.--
(1) In general.--As [NOTE: Reports. soon as practicable
after the date of enactment of this Act, the Secretary and the
Secretary of Defense shall jointly conduct, and submit to
Congress and the President, a report of, a study of the
potential for the use of energy savings performance contracts to
reduce energy consumption and provide energy and cost savings in
nonbuilding applications.
(2) Requirements.--The study under this subsection shall
include--
(A) an estimate of the potential energy and cost
savings to the Federal Government, including secondary
savings and benefits, from increased efficiency in
nonbuilding applications;
(B) an assessment of the feasibility of extending
the use of energy savings performance contracts to
nonbuilding applications, including an identification of
any regulatory or statutory barriers to that use; and
(C) such recommendations as the Secretary and the
Secretary of Defense determine to be appropriate.

Subtitle C--Energy Efficiency in Federal Agencies

SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY
HEADQUARTERS BUILDING.

(a) In General.--The Administrator of General Services shall install
a photovoltaic system, as set forth in the Sun Wall Design Project, for
the headquarters building of the Department located at 1000 Independence
Avenue, SW., Washington, DC, commonly known as the Forrestal Building.
(b) Funding.--There shall be available from the Federal Buildings
Fund established by section 592 of title 40, United States Code,
$30,000,000 to carry out this section. Such sums shall be derived from
the unobligated balance of amounts made available from the Fund for
fiscal year 2007, and prior fiscal years, for repairs and alternations
and other activities (excluding amounts

[[Page 1662]]
121 STAT. 1662

made available for the energy program). Such sums shall remain available
until expended.

SEC. 522. [NOTE: 42 USC 17141. PROHIBITION ON INCANDESCENT LAMPS BY
COAST GUARD.

(a) Prohibition.--Except as [NOTE: Effective date. provided by
subsection (b), on and after January 1, 2009, a general service
incandescent lamp shall not be purchased or installed in a Coast Guard
facility by or on behalf of the Coast Guard.

(b) Exception.--A general service incandescent lamp may be
purchased, installed, and used in a Coast Guard facility whenever the
application of a general service incandescent lamp is--
(1) necessary due to purpose or design, including medical,
security, and industrial applications;
(2) reasonable due to the architectural or historical value
of a light fixture installed before January 1, 2009; or
(3) the Commandant of the Coast Guard determines that
operational requirements necessitate the use of a general
service incandescent lamp.

(c) Limitation.--In this section, the term ``facility'' does not
include a vessel or aircraft of the Coast Guard.

SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.

Section 305(a)(3)(A) of the Energy Conservation and Production Act
(42 U.S.C. 6834(a)(3)(A)) is amended--
(1) in clause (i)(II), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iii) if lifecycle cost-effective, as
compared to other reasonably available
technologies, not less than 30 percent of the hot
water demand for each new Federal building or
Federal building undergoing a major renovation be
met through the installation and use of solar hot
water heaters.''.

SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.

Section 553 of the National Energy Conservation Policy Act (42
U.S.C. 8259b) is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:

``(e) Federally-Procured Appliances With Standby Power.--
``(1) Definition of eligible product.--In this subsection,
the term `eligible product' means a commercially available, off-
the-shelf product that--
``(A)(i) uses external standby power devices; or
``(ii) contains an internal standby power function;
and
``(B) is included on the list compiled under
paragraph (4).
``(2) Federal purchasing requirement.--Subject to paragraph
(3), if an agency purchases an eligible product, the agency
shall purchase--
``(A) an eligible product that uses not more than 1
watt in the standby power consuming mode of the eligible
product; or
``(B) if an eligible product described in
subparagraph (A) is not available, the eligible product
with the lowest

[[Page 1663]]
121 STAT. 1663

available standby power wattage in the standby power
consuming mode of the eligible product.
``(3) Limitation.--The requirements of paragraph (2) shall
apply to a purchase by an agency only if--
``(A) the lower-wattage eligible product is--
``(i) lifecycle cost-effective; and
``(ii) practicable; and
``(B) the utility and performance of the eligible
product is not compromised by the lower wattage
requirement.
``(4) Eligible products.--The [NOTE: Records. Secretary,
in consultation with the Secretary of Defense, the Administrator
of the Environmental Protection Agency, and the Administrator of
General Services, shall compile a publicly accessible list of
cost-effective eligible products that shall be subject to the
purchasing requirements of paragraph (2).''.

SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

(a) Amendments.--Section 553 of the National Energy Conservation
Policy Act (42 U.S.C. 8259b) is amended--
(1) in subsection (b)(1), by inserting ``in a product
category covered by the Energy Star program or the Federal
Energy Management Program for designated products'' after
``energy consuming product''; and
(2) in the second sentence of subsection (c)--
(A) by inserting ``list in their catalogues,
represent as available, and'' after ``Logistics Agency
shall''; and
(B) by striking ``where the agency'' and inserting
``in which the head of the agency''.

(b) Catalogue [NOTE: 42 USC 8259b note. Listing Deadline.--Not
later than 9 months after the date of enactment of this Act, the General
Services Administration and the Defense Logistics Agency shall ensure
that the requirement established by the amendment made by subsection
(a)(2)(A) has been fully complied with.

SEC. 526. [NOTE: 42 USC 17142. PROCUREMENT AND ACQUISITION OF
ALTERNATIVE FUELS.

No Federal agency shall enter into a contract for procurement of an
alternative or synthetic fuel, including a fuel produced from
nonconventional petroleum sources, for any mobility-related use, other
than for research or testing, unless the contract specifies that the
lifecycle greenhouse gas emissions associated with the production and
combustion of the fuel supplied under the contract must, on an ongoing
basis, be less than or equal to such emissions from the equivalent
conventional fuel produced from conventional petroleum sources.

SEC. 527. [NOTE: 42 USC 17143. GOVERNMENT EFFICIENCY STATUS REPORTS.

(a) In General.--Each Federal agency subject to any of the
requirements of this title or the amendments made by this title shall
compile and submit to the Director of the Office of Management and
Budget an annual Government efficiency status report on--
(1) compliance by the agency with each of the requirements
of this title and the amendments made by this title;
(2) the status of the implementation by the agency of
initiatives to improve energy efficiency, reduce energy costs,
and reduce emissions of greenhouse gases; and

[[Page 1664]]
121 STAT. 1664

(3) savings to the taxpayers of the United States resulting
from mandated improvements under this title and the amendments
made by this title.

(b) Submission.--The report shall be submitted--
(1) to the Director at such time as the Director requires;
(2) in electronic, not paper, format; and
(3) consistent with related reporting requirements.

SEC. 528. [NOTE: 42 USC 17144. OMB GOVERNMENT EFFICIENCY REPORTS AND
SCORECARDS.

(a) Reports.--Not later than April 1 of each year, the Director of
the Office of Management and Budget shall submit an annual Government
efficiency report to the Committee on Oversight and Government Reform of
the House of Representatives and the Committee on Governmental Affairs
of the Senate, which shall contain--
(1) a summary of the information reported by agencies under
section 527;
(2) an evaluation of the overall progress of the Federal
Government toward achieving the goals of this title and the
amendments made by this title; and
(3) recommendations for additional actions necessary to meet
the goals of this title and the amendments made by this title.

(b) Scorecards.--The Director of the Office of Management and Budget
shall include in any annual energy scorecard the Director is otherwise
required to submit a description of the compliance of each agency with
the requirements of this title and the amendments made by this title.

SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.

(a) In General.--Title V of the National Energy Conservation Policy
Act (42 U.S.C. 8241 et seq.) is amended by adding at the end the
following:

``PART 5--PEAK DEMAND REDUCTION

``SEC. 571. [NOTE: 42 USC 8279. NATIONAL ACTION PLAN FOR DEMAND
RESPONSE.

``(a) National Assessment and Report.--The Federal Energy Regulatory
Commission (`Commission') shall conduct a National Assessment of Demand
Response. The Commission shall, within 18 months of the date of
enactment of this part, submit a report to Congress that includes each
of the following:
``(1) Estimation of nationwide demand response potential in
5 and 10 year horizons, including data on a State-by-State
basis, and a methodology for updates of such estimates on an
annual basis.
``(2) Estimation of how much of this potential can be
achieved within 5 and 10 years after the enactment of this part
accompanied by specific policy recommendations that if
implemented can achieve the estimated potential. Such
recommendations shall include options for funding and/or
incentives for the development of demand response resources.
``(3) The Commission shall further note any barriers to
demand response programs offering flexible, non-discriminatory,
and fairly compensatory terms for the services and benefits made
available, and shall provide recommendations for overcoming such
barriers.

[[Page 1665]]
121 STAT. 1665

``(4) The Commission shall seek to take advantage of
preexisting research and ongoing work, and shall insure that
there is no duplication of effort.

``(b) National Action Plan on Demand Response.--The Commission shall
further develop a National Action Plan on Demand Response, soliciting
and accepting input and participation from a broad range of industry
stakeholders, State regulatory utility commissioners, and non-
governmental groups. The Commission shall seek consensus where possible,
and decide on optimum solutions to issues that defy consensus. Such Plan
shall be completed within 1 year after the completion of the National
Assessment of Demand Response, and shall meet each of the following
objectives:
``(1) Identification of requirements for technical
assistance to States to allow them to maximize the amount of
demand response resources that can be developed and deployed.
``(2) Design and identification of requirements for
implementation of a national communications program that
includes broad-based customer education and support.
``(3) Development or identification of analytical tools,
information, model regulatory provisions, model contracts, and
other support materials for use by customers, States, utilities
and demand response providers.

``(c) [NOTE: Publication. Upon completion, the National Action
Plan on Demand Response shall be published, together with any favorable
and dissenting comments submitted by participants in its preparation.
Six months after [NOTE: Deadline. Proposal. publication, the
Commission, together with the Secretary of Energy, shall submit to
Congress a proposal to implement the Action Plan, including specific
proposed assignments of responsibility, proposed budget amounts, and any
agreements secured for participation from State and other participants.

``(d) Authorization.--There are authorized to be appropriated to the
Commission to carry out this section not more than $10,000,000 for each
of the fiscal years 2008, 2009, and 2010.''.
(b) Table of Contents.--The table of contents for the National
Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended by
adding after the items relating to part 4 of title V the following:

``Part 5--Peak Demand Reduction

``Sec. 571. National Action Plan for Demand Response.''.

Subtitle D--Energy Efficiency of Public Institutions

SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.

Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C.
6325(f)) is amended by striking ``$100,000,000 for each of the fiscal
years 2006 and 2007 and $125,000,000 for fiscal year 2008'' and
inserting ``$125,000,000 for each of fiscal years 2007 through 2012''.

SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.

(a) Electric Utilities.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding
at the end the following:
``(16) Integrated resource planning.--Each electric utility
shall--

[[Page 1666]]
121 STAT. 1666

``(A) integrate energy efficiency resources into
utility, State, and regional plans; and
``(B) adopt policies establishing cost-effective
energy efficiency as a priority resource.
``(17) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged
by any electric utility shall--
``(i) align utility incentives with the
delivery of cost-effective energy efficiency; and
``(ii) promote energy efficiency investments.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory authority and
each nonregulated utility shall consider--
``(i) removing the throughput incentive and
other regulatory and management disincentives to
energy efficiency;
``(ii) providing utility incentives for the
successful management of energy efficiency
programs;
``(iii) including the impact on adoption of
energy efficiency as 1 of the goals of retail rate
design, recognizing that energy efficiency must be
balanced with other objectives;
``(iv) adopting rate designs that encourage
energy efficiency for each customer class;
``(v) allowing timely recovery of energy
efficiency-related costs; and
``(vi) offering home energy audits, offering
demand response programs, publicizing the
financial and environmental benefits associated
with making home energy efficiency improvements,
and educating homeowners about all existing
Federal and State incentives, including the
availability of low-cost loans, that make energy
efficiency improvements more affordable.''.

(b) Natural Gas Utilities.--Section 303(b) of the Public Utility
Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by adding
at the end the following:
``(5) Energy efficiency.--Each natural gas utility shall--
``(A) integrate energy efficiency resources into the
plans and planning processes of the natural gas utility;
and
``(B) adopt policies that establish energy
efficiency as a priority resource in the plans and
planning processes of the natural gas utility.
``(6) Rate design modifications to promote energy efficiency
investments.--
``(A) In general.--The rates allowed to be charged
by a natural gas utility shall align utility incentives
with the deployment of cost-effective energy efficiency.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory authority and
each nonregulated utility shall consider--
``(i) separating fixed-cost revenue recovery
from the volume of transportation or sales service
provided to the customer;
``(ii) providing to utilities incentives for
the successful management of energy efficiency
programs, such

[[Page 1667]]
121 STAT. 1667

as allowing utilities to retain a portion of the
cost-reducing benefits accruing from the programs;
``(iii) promoting the impact on adoption of
energy efficiency as 1 of the goals of retail rate
design, recognizing that energy efficiency must be
balanced with other objectives; and
``(iv) adopting rate designs that encourage
energy efficiency for each customer class.
For purposes of applying the provisions of this subtitle
to this paragraph, any reference in this subtitle to the
date of enactment of this Act shall be treated as a
reference to the date of enactment of this paragraph.''.

(c) Conforming Amendment.--Section 303(a) of the Public Utility
Regulatory Policies Act of 1978 (15 U.S.C. 3203(a)) is amended by
striking ``and (4)'' inserting ``(4), (5), and (6)''.

Subtitle E--Energy Efficiency and Conservation Block Grants

SEC. 541. [NOTE: 42 USC 17151. DEFINITIONS.

In this subtitle:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State;
(B) an eligible unit of local government; and
(C) an Indian tribe.
(2) Eligible unit of local government.--The term ``eligible
unit of local government'' means--
(A) an eligible unit of local government-alternative
1; and
(B) an eligible unit of local government-alternative
2.
(3)(A) Eligible unit of local government-alternative 1.--The
term ``eligible unit of local government-alternative 1'' means--
(i) a city with a population--
(I) of at least 35,000; or
(II) that causes the city to be 1 of the 10
highest-populated cities of the State in which the
city is located; and
(ii) a county with a population--
(I) of at least 200,000; or
(II) that causes the county to be 1 of the 10
highest-populated counties of the State in which
the county is located.
(B) Eligible unit of local government-alternative 2.--The
term ``eligible unit of local government-alternative 2'' means--
(i) a city with a population of at least 50,000; or
(ii) a county with a population of at least 200,000.
(4) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(5) Program.--The term ``program'' means the Energy
Efficiency and Conservation Block Grant Program established
under section 542(a).
(6) State.--The term ``State'' means--
(A) a State;

[[Page 1668]]
121 STAT. 1668

(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.

SEC. 542. [NOTE: 42 USC 17152. ENERGY EFFICIENCY AND CONSERVATION
BLOCK GRANT PROGRAM.

(a) Establishment.--The Secretary shall establish a program, to be
known as the ``Energy Efficiency and Conservation Block Grant Program'',
under which the Secretary shall provide grants to eligible entities in
accordance with this subtitle.
(b) Purpose.--The purpose of the program shall be to assist eligible
entities in implementing strategies--
(1) to reduce fossil fuel emissions created as a result of
activities within the jurisdictions of eligible entities in a
manner that--
(A) is environmentally sustainable; and
(B) to the maximum extent practicable, maximizes
benefits for local and regional communities;
(2) to reduce the total energy use of the eligible entities;
and
(3) to improve energy efficiency in--
(A) the transportation sector;
(B) the building sector; and
(C) other appropriate sectors.

SEC. 543. [NOTE: 42 USC 17153. ALLOCATION OF FUNDS.

(a) In General.--Of amounts made available to provide grants under
this subtitle for each fiscal year, the Secretary shall allocate--
(1) 68 percent to eligible units of local government in
accordance with subsection (b);
(2) 28 percent to States in accordance with subsection (c);
(3) 2 percent to Indian tribes in accordance with subsection
(d); and
(4) 2 percent for competitive grants under section 546.

(b) Eligible Units of Local Government.--Of amounts available for
distribution to eligible units of local government under subsection
(a)(1), the Secretary shall provide grants to eligible units of local
government under this section based on a formula established by the
Secretary according to--
(1) the populations served by the eligible units of local
government, according to the latest available decennial census;
and
(2) the daytime populations of the eligible units of local
government and other similar factors (such as square footage of
commercial, office, and industrial space), as determined by the
Secretary.

(c) States.--Of amounts available for distribution to States under
subsection (a)(2), the Secretary shall provide--
(1) not less than 1.25 percent to each State; and
(2) the remainder among the States, based on a formula to be
established by the Secretary that takes into account--
(A) the population of each State; and
(B) any other criteria that the Secretary determines
to be appropriate.

(d) Indian Tribes.--Of amounts available for distribution to Indian
tribes under subsection (a)(3), the Secretary shall establish

[[Page 1669]]
121 STAT. 1669

a formula for allocation of the amounts to Indian tribes, taking into
account any factors that the Secretary determines to be appropriate.
(e) Publication of [NOTE: Deadline. Federal
Register, publication. Allocation Formulas.--Not later than 90 days
before the beginning of each fiscal year for which grants are provided
under this subtitle, the Secretary shall publish in the Federal Register
the formulas for allocation established under this section.

(f) State and [NOTE: Establishment. Local Advisory Committee.--
The Secretary shall establish a State and local advisory committee to
advise the Secretary regarding administration, implementation, and
evaluation of the program.

SEC. 544. [NOTE: 42 USC 17154. USE OF FUNDS.

An eligible entity may use a grant received under this subtitle to
carry out activities to achieve the purposes of the program, including--
(1) development and implementation of an energy efficiency
and conservation strategy under section 545(b);
(2) retaining technical consultant services to assist the
eligible entity in the development of such a strategy,
including--
(A) formulation of energy efficiency, energy
conservation, and energy usage goals;
(B) identification of strategies to achieve those
goals--
(i) through efforts to increase energy
efficiency and reduce energy consumption; and
(ii) by encouraging behavioral changes among
the population served by the eligible entity;
(C) development of methods to measure progress in
achieving the goals;
(D) development and publication of annual reports to
the population served by the eligible entity
describing--
(i) the strategies and goals; and
(ii) the progress made in achieving the
strategies and goals during the preceding calendar
year; and
(E) other services to assist in the implementation
of the energy efficiency and conservation strategy;
(3) conducting residential and commercial building energy
audits;
(4) establishment of financial incentive programs for energy
efficiency improvements;
(5) the provision of grants to nonprofit organizations and
governmental agencies for the purpose of performing energy
efficiency retrofits;
(6) development and implementation of energy efficiency and
conservation programs for buildings and facilities within the
jurisdiction of the eligible entity, including--
(A) design and operation of the programs;
(B) identifying the most effective methods for
achieving maximum participation and efficiency rates;
(C) public education;
(D) measurement and verification protocols; and
(E) identification of energy efficient technologies;
(7) development and implementation of programs to conserve
energy used in transportation, including--
(A) use of flex time by employers;

[[Page 1670]]
121 STAT. 1670

(B) satellite work centers;
(C) development and promotion of zoning guidelines
or requirements that promote energy efficient
development;
(D) development of infrastructure, such as bike
lanes and pathways and pedestrian walkways;
(E) synchronization of traffic signals; and
(F) other measures that increase energy efficiency
and decrease energy consumption;
(8) development and implementation of building codes and
inspection services to promote building energy efficiency;
(9) application and implementation of energy distribution
technologies that significantly increase energy efficiency,
including--
(A) distributed resources; and
(B) district heating and cooling systems;
(10) activities to increase participation and efficiency
rates for material conservation programs, including source
reduction, recycling, and recycled content procurement programs
that lead to increases in energy efficiency;
(11) the purchase and implementation of technologies to
reduce, capture, and, to the maximum extent practicable, use
methane and other greenhouse gases generated by landfills or
similar sources;
(12) replacement of traffic signals and street lighting with
energy efficient lighting technologies, including--
(A) light emitting diodes; and
(B) any other technology of equal or greater energy
efficiency;
(13) development, implementation, and installation on or in
any government building of the eligible entity of onsite
renewable energy technology that generates electricity from
renewable resources, including--
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) any other appropriate activity, as determined by the
Secretary, in consultation with--
(A) the Administrator of the Environmental
Protection Agency;
(B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban Development.

SEC. 545. [NOTE: 42 USC 17155. REQUIREMENTS FOR ELIGIBLE ENTITIES.

(a) Construction Requirement.--
(1) In general.--To be eligible to receive a grant under the
program, each eligible applicant shall submit to the Secretary a
written assurance that all laborers and mechanics employed by
any contractor or subcontractor of the eligible entity during
any construction, alteration, or repair activity funded, in
whole or in part, by the grant shall be paid wages at rates not
less than the prevailing wages for similar construction
activities in the locality, as determined by the Secretary of
Labor, in accordance with sections 3141 through 3144, 3146, and
3147 of title 40, United States Code.

[[Page 1671]]
121 STAT. 1671

(2) Secretary of labor.--With respect to the labor standards
referred to in paragraph (1), the Secretary of Labor shall have
the authority and functions described in--
(A) Reorganization Plan Numbered 14 of 1950 (5
U.S.C. 903 note); and
(B) section 3145 of title 40, United States Code.

(b) Eligible Units of Local Government and Indian Tribes.--
(1) Proposed strategy.--
(A) In general.--Not [NOTE: Deadline. later than
1 year after the date on which an eligible unit of local
government or Indian tribe receives a grant under this
subtitle, the eligible unit of local government or
Indian tribe shall submit to the Secretary a proposed
energy efficiency and conservation strategy in
accordance with this paragraph.
(B) Inclusions.--The proposed strategy under
subparagraph (A) shall include--
(i) a description of the goals of the eligible
unit of local government or Indian tribe, in
accordance with the purposes of this subtitle, for
increased energy efficiency and conservation in
the jurisdiction of the eligible unit of local
government or Indian tribe; and
(ii) a plan for the use of the grant to assist
the eligible unit of local government or Indian
tribe in achieving those goals, in accordance with
section 544.
(C) Requirements for eligible units of local
government.--In developing the strategy under
subparagraph (A), an eligible unit of local government
shall--
(i) take into account any plans for the use of
funds by adjacent eligible units of local
governments that receive grants under the program;
and
(ii) coordinate and share information with the
State in which the eligible unit of local
government is located regarding activities carried
out using the grant to maximize the energy
efficiency and conservation benefits under this
subtitle.
(2) Approval by secretary.--
(A) In general.--The [NOTE: Deadline. Secretary
shall approve or disapprove a proposed strategy under
paragraph (1) by not later than 120 days after the date
of submission of the proposed strategy.
(B) Disapproval.--If the Secretary disapproves a
proposed strategy under subparagraph (A)--
(i) the Secretary shall provide to the
eligible unit of local government or Indian tribe
the reasons for the disapproval; and
(ii) the eligible unit of local government or
Indian tribe may revise and resubmit the proposed
strategy as many times as necessary until the
Secretary approves a proposed strategy.
(C) Requirement.--The Secretary shall not provide to
an eligible unit of local government or Indian tribe any
grant under the program until a proposed strategy of the
eligible unit of local government or Indian tribe is
approved by the Secretary under this paragraph.
(3) Limitations on use of funds.--Of amounts provided to an
eligible unit of local government or Indian tribe under

[[Page 1672]]
121 STAT. 1672

the program, an eligible unit of local government or Indian
tribe may use--
(A) for administrative expenses, excluding the cost
of meeting the reporting requirements of this subtitle,
an amount equal to the greater of--
(i) 10 percent; and
(ii) $75,000;
(B) for the establishment of revolving loan funds,
an amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000; and
(C) for the provision of subgrants to
nongovernmental organizations for the purpose of
assisting in the implementation of the energy efficiency
and conservation strategy of the eligible unit of local
government or Indian tribe, an amount equal to the
greater of--
(i) 20 percent; and
(ii) $250,000.
(4) Annual report.--Not later than 2 years after the date on
which funds are initially provided to an eligible unit of local
government or Indian tribe under the program, and annually
thereafter, the eligible unit of local government or Indian
tribe shall submit to the Secretary a report describing--
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the
eligible unit of local government or Indian tribe; and
(B) as practicable, an assessment of energy
efficiency gains within the jurisdiction of the eligible
unit of local government or Indian tribe.

(c) States.--
(1) Distribution of funds.--
(A) In general.--A State that receives a grant under
the program shall use not less than 60 percent of the
amount received to provide subgrants to units of local
government in the State that are not eligible units of
local government.
(B) Deadline.--The State shall provide the subgrants
required under subparagraph (A) by not later than 180
days after the date on which the Secretary approves a
proposed energy efficiency and conservation strategy of
the State under paragraph (3).
(2) Revision of conservation plan; proposed strategy.--Not
later than 120 [NOTE: Deadline. days after the date of
enactment of this Act, each State shall--
(A) modify the State energy conservation plan of the
State under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322) to establish
additional goals for increased energy efficiency and
conservation in the State; and
(B) submit to the Secretary a proposed energy
efficiency and conservation strategy that--
(i) establishes a process for providing
subgrants as required under paragraph (1); and
(ii) includes a plan of the State for the use
of funds received under the program to assist the
State in achieving the goals established under
subparagraph (A), in accordance with sections
542(b) and 544.

[[Page 1673]]
121 STAT. 1673

(3) Approval by secretary.--
(A) In general.--The [NOTE: Deadline. Secretary
shall approve or disapprove a proposed strategy under
paragraph (2)(B) by not later than 120 days after the
date of submission of the proposed strategy.
(B) Disapproval.--If the Secretary disapproves a
proposed strategy under subparagraph (A)--
(i) the Secretary shall provide to the State
the reasons for the disapproval; and
(ii) the State may revise and resubmit the
proposed strategy as many times as necessary until
the Secretary approves a proposed strategy.
(C) Requirement.--The Secretary shall not provide to
a State any grant under the program until a proposed
strategy of the State is approved by the Secretary under
this paragraph.
(4) Limitations on use of funds.--A State may use not more
than 10 percent of amounts provided under the program for
administrative expenses.
(5) Annual reports.--Each State that receives a grant under
the program shall submit to the Secretary an annual report that
describes--
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the
State during the preceding calendar year;
(B) the status of the subgrant program of the State
under paragraph (1);
(C) the energy efficiency gains achieved through the
energy efficiency and conservation strategy of the State
during the preceding calendar year; and
(D) specific energy efficiency and conservation
goals of the State for subsequent calendar years.

SEC. 546. [NOTE: 42 USC 17156. COMPETITIVE GRANTS.

(a) In General.--Of the total amount made available for each fiscal
year to carry out this subtitle, the Secretary shall use not less than 2
percent to provide grants under this section, on a competitive basis,
to--
(1) units of local government (including Indian tribes) that
are not eligible entities; and
(2) consortia of units of local government described in
paragraph (1).

(b) Applications.--To be eligible to receive a grant under this
section, a unit of local government or consortia shall submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require, including a plan of the
unit of local government to carry out an activity described in section
544.
(c) Priority.--In providing grants under this section, the Secretary
shall give priority to units of local government--
(1) located in States with populations of less than
2,000,000; or
(2) that plan to carry out projects that would result in
significant energy efficiency improvements or reductions in
fossil fuel use.

[[Page 1674]]
121 STAT. 1674

SEC. 547. [NOTE: 42 USC 17157. REVIEW AND EVALUATION.

(a) In General.--The Secretary may review and evaluate the
performance of any eligible entity that receives a grant under the
program, including by conducting an audit, as the Secretary determines
to be appropriate.
(b) Withholding of Funds.--The Secretary may withhold from an
eligible entity any portion of a grant to be provided to the eligible
entity under the program if the Secretary determines that the eligible
entity has failed to achieve compliance with--
(1) any applicable guideline or regulation of the Secretary
relating to the program, including the misuse or
misappropriation of funds provided under the program; or
(2) the energy efficiency and conservation strategy of the
eligible entity.

SEC. 548. [NOTE: 42 USC 17158. FUNDING.

(a) Authorization of Appropriations.--
(1) Grants.--There is authorized to be appropriated to the
Secretary for the provision of grants under the program
$2,000,000,000 for each of fiscal years 2008 through 2012;
provided that 49 percent of the appropriated funds shall be
distributed using the definition of eligible unit of local
government-alternative 1 in section 541(3)(A) and 49 percent of
the appropriated funds shall be distributed using the definition
of eligible unit of local government-alternative 2 in section
541(3)(B).
(2) Administrative costs.--There are authorized to be
appropriated to the Secretary for administrative expenses of the
program--
(A) $20,000,000 for each of fiscal years 2008 and
2009;
(B) $25,000,000 for each of fiscal years 2010 and
2011; and
(C) $30,000,000 for fiscal year 2012.

(b) Maintenance of Funding.--The funding provided under this section
shall supplement (and not supplant) other Federal funding provided
under--
(1) a State energy conservation plan established under part
D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.); or
(2) the Weatherization Assistance Program for Low-Income
Persons established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).

TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

Subtitle A--Solar [NOTE: Solar Energy Research and Advancement Act of
2007. Energy

SEC. 601. [NOTE: 42 USC 17001 note. SHORT TITLE.

This subtitle may be cited as the ``Solar Energy Research and
Advancement Act of 2007''.

SEC. 602. [NOTE: 42 USC 17171. THERMAL ENERGY STORAGE RESEARCH AND
DEVELOPMENT PROGRAM.

(a) Establishment.--The Secretary shall establish a program of
research and development to provide lower cost and more viable

[[Page 1675]]
121 STAT. 1675

thermal energy storage technologies to enable the shifting of electric
power loads on demand and extend the operating time of concentrating
solar power electric generating plants.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $5,000,000
for fiscal year 2008, $7,000,000 for fiscal year 2009, $9,000,000 for
fiscal year 2010, $10,000,000 for fiscal year 2011, and $12,000,000 for
fiscal year 2012.

SEC. 603. [NOTE: Deadlines. Reports. CONCENTRATING SOLAR POWER
COMMERCIAL APPLICATION STUDIES.

(a) Integration.--The Secretary shall conduct a study on methods to
integrate concentrating solar power and utility-scale photovoltaic
systems into regional electricity transmission systems, and to identify
new transmission or transmission upgrades needed to bring electricity
from high concentrating solar power resource areas to growing electric
power load centers throughout the United States. The study shall analyze
and assess cost-effective approaches for management and large-scale
integration of concentrating solar power and utility-scale photovoltaic
systems into regional electric transmission grids to improve electric
reliability, to efficiently manage load, and to reduce demand on the
natural gas transmission system for electric power. The Secretary shall
submit a report to Congress on the results of this study not later than
12 months after the date of enactment of this Act.
(b) Water Consumption.--Not later than 6 months after the date of
the enactment of this Act, the Secretary of Energy shall transmit to
Congress a report on the results of a study on methods to reduce the
amount of water consumed by concentrating solar power systems.

SEC. 604. [NOTE: 42 USC 17172. SOLAR ENERGY CURRICULUM DEVELOPMENT
AND CERTIFICATION GRANTS.

(a) Establishment.--The Secretary shall establish in the Office of
Solar Energy Technologies a competitive grant program to create and
strengthen solar industry workforce training and internship programs in
installation, operation, and maintenance of solar energy products. The
goal of this program is to ensure a supply of well-trained individuals
to support the expansion of the solar energy industry.
(b) Authorized Activities.--Grant funds may be used to support the
following activities:
(1) Creation and development of a solar energy curriculum
appropriate for the local educational, entrepreneurial, and
environmental conditions, including curriculum for community
colleges.
(2) Support of certification programs for individual solar
energy system installers, instructors, and training programs.
(3) Internship programs that provide hands-on participation
by students in commercial applications.
(4) Activities required to obtain certification of training
programs and facilities by an industry-accepted quality-control
certification program.
(5) Incorporation of solar-specific learning modules into
traditional occupational training and internship programs for
construction-related trades.
(6) The purchase of equipment necessary to carry out
activities under this section.

[[Page 1676]]
121 STAT. 1676

(7) Support of programs that provide guidance and updates to
solar energy curriculum instructors.

(c) Administration of Grants.--Grants may be awarded under this
section for up to 3 years. The Secretary shall award grants to ensure
sufficient geographic distribution of training programs nationally.
Grants shall only be awarded for programs certified by an industry-
accepted quality-control certification institution, or for new and
growing programs with a credible path to certification. Due
consideration shall be given to women, underrepresented minorities, and
persons with disabilities.
(d) Report.--The Secretary shall make public, on the website of the
Department or upon request, information on the name and institution for
all grants awarded under this section, including a brief description of
the project as well as the grant award amount.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $10,000,000
for each of the fiscal years 2008 through 2012.

SEC. 605. [NOTE: 42 USC 17173. DAYLIGHTING SYSTEMS AND DIRECT SOLAR
LIGHT PIPE TECHNOLOGY.

(a) Establishment.--The Secretary shall establish a program of
research and development to provide assistance in the demonstration and
commercial application of direct solar renewable energy sources to
provide alternatives to traditional power generation for lighting and
illumination, including light pipe technology, and to promote greater
energy conservation and improved efficiency. All direct solar renewable
energy devices supported under this program shall have the capability to
provide measurable data on the amount of kilowatt-hours saved over the
traditionally powered light sources they have replaced.
(b) Reporting.--The Secretary shall transmit to Congress an annual
report assessing the measurable data derived from each project in the
direct solar renewable energy sources program and the energy savings
resulting from its use.
(c) Definitions.--For purposes of this section--
(1) the term ``direct solar renewable energy'' means energy
from a device that converts sunlight into useable light within a
building, tunnel, or other enclosed structure, replacing
artificial light generated by a light fixture and doing so
without the conversion of the sunlight into another form of
energy; and
(2) the term ``light pipe'' means a device designed to
transport visible solar radiation from its collection point to
the interior of a building while excluding interior heat gain in
the nonheating season.

(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $3,500,000
for each of the fiscal years 2008 through 2012.

SEC. 606. [NOTE: 42 USC 17174. SOLAR AIR CONDITIONING RESEARCH AND
DEVELOPMENT PROGRAM.

(a) Establishment.--The Secretary shall establish a research,
development, and demonstration program to promote less costly and more
reliable decentralized distributed solar-powered air conditioning for
individuals and businesses.
(b) Authorized Activities.--Grants made available under this section
may be used to support the following activities:

[[Page 1677]]
121 STAT. 1677

(1) Advancing solar thermal collectors, including
concentrating solar thermal and electric systems, flat plate and
evacuated tube collector performance.
(2) Achieving technical and economic integration of solar-
powered distributed air-conditioning systems with existing hot
water and storage systems for residential applications.
(3) Designing and demonstrating mass manufacturing
capability to reduce costs of modular standardized solar-powered
distributed air conditioning systems and components.
(4) Improving the efficiency of solar-powered distributed
air-conditioning to increase the effectiveness of solar-powered
absorption chillers, solar-driven compressors and condensors,
and cost-effective precooling approaches.
(5) Researching and comparing performance of solar-powered
distributed air conditioning systems in different regions of the
country, including potential integration with other onsite
systems, such as solar, biogas, geothermal heat pumps, and
propane assist or combined propane fuel cells, with a goal to
develop site-specific energy production and management systems
that ease fuel and peak utility loading.

(c) Cost Sharing.--Section [NOTE: Applicability. 988 of the
Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a project
carried out under this section.

(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $2,500,000
for each of the fiscal years 2008 through 2012.

SEC. 607. [NOTE: 42 USC 17175. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

(a) In General.--The Secretary shall establish a program of grants
to States to demonstrate advanced photovoltaic technology.
(b) Requirements.--
(1) Ability to meet requirements.--To receive funding under
the program under this section, a State must submit a proposal
that demonstrates, to the satisfaction of the Secretary, that
the State will meet the requirements of subsection (f).
(2) Compliance with requirements.--If a State has received
funding under this section for the preceding year, the State
must demonstrate, to the satisfaction of the Secretary, that it
complied with the requirements of subsection (f) in carrying out
the program during that preceding year, and that it will do so
in the future, before it can receive further funding under this
section.

(c) Competition.--The [NOTE: Grants. Secretary shall award grants
on a competitive basis to the States with the proposals the Secretary
considers most likely to encourage the widespread adoption of
photovoltaic technologies. The Secretary shall take into consideration
the geographic distribution of awards.

(d) Proposals.--Not [NOTE: Deadline. later than 6 months after
the date of enactment of this Act, and in each subsequent fiscal year
for the life of the program, the Secretary shall solicit proposals from
the States to participate in the program under this section.

(e) Competitive Criteria.--In awarding funds in a competitive
allocation under subsection (c), the Secretary shall consider--
(1) the likelihood of a proposal to encourage the
demonstration of, or lower the costs of, advanced photovoltaic
technologies; and

[[Page 1678]]
121 STAT. 1678

(2) the extent to which a proposal is likely to--
(A) maximize the amount of photovoltaics
demonstrated;
(B) maximize the proportion of non-Federal cost
share; and
(C) limit State administrative costs.

(f) State Program.--A program operated by a State with funding under
this section shall provide competitive awards for the demonstration of
advanced photovoltaic technologies. [NOTE: Reports. Each State
program shall--
(1) require a contribution of at least 60 percent per award
from non-Federal sources, which may include any combination of
State, local, and private funds, except that at least 10 percent
of the funding must be supplied by the State;
(2) endeavor to fund recipients in the commercial,
industrial, institutional, governmental, and residential
sectors;
(3) limit State administrative costs to no more than 10
percent of the grant;
(4) report annually to the Secretary on--
(A) the amount of funds disbursed;
(B) the amount of photovoltaics purchased; and
(C) the results of the monitoring under paragraph
(5);
(5) provide for measurement and verification of the output
of a representative sample of the photovoltaics systems
demonstrated throughout the average working life of the systems,
or at least 20 years; and
(6) require that applicant buildings must have received an
independent energy efficiency audit during the 6-month period
preceding the filing of the application.

(g) Unexpended Funds.--If a State fails to expend any funds received
under this section within 3 years of receipt, such remaining funds shall
be returned to the Treasury.
(h) Reports.--The Secretary shall report to Congress 5 years after
funds are first distributed to the States under this section--
(1) the amount of photovoltaics demonstrated;
(2) the number of projects undertaken;
(3) the administrative costs of the program;
(4) the results of the monitoring under subsection (f)(5);
and
(5) the total amount of funds distributed, including a
breakdown by State.

(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for the purposes of carrying out this
section--
(1) $15,000,000 for fiscal year 2008;
(2) $30,000,000 for fiscal year 2009;
(3) $45,000,000 for fiscal year 2010;
(4) $60,000,000 for fiscal year 2011; and
(5) $70,000,000 for fiscal year 2012.

Subtitle B--Geothermal [NOTE: Advanced Geothermal Energy Research and
Development Act of 2007. Energy

SEC. 611. [NOTE: 42 USC 17001 note. SHORT TITLE.

This subtitle may be cited as the ``Advanced Geothermal Energy
Research and Development Act of 2007''.

[[Page 1679]]
121 STAT. 1679

SEC. 612. [NOTE: 42 USC 17191. DEFINITIONS.

For purposes of this subtitle:
(1) Engineered.--When referring to enhanced geothermal
systems, the term ``engineered'' means subjected to
intervention, including intervention to address one or more of
the following issues:
(A) Lack of effective permeability or porosity or
open fracture connectivity within the reservoir.
(B) Insufficient contained geofluid in the
reservoir.
(C) A low average geothermal gradient, which
necessitates deeper drilling.
(2) Enhanced geothermal systems.--The term ``enhanced
geothermal systems'' means geothermal reservoir systems that are
engineered, as opposed to occurring naturally.
(3) Geofluid.--The term ``geofluid'' means any fluid used to
extract thermal energy from the Earth which is transported to
the surface for direct use or electric power generation, except
that such term shall not include oil or natural gas.
(4) Geopressured resources.--The term ``geopressured
resources'' mean geothermal deposits found in sedimentary rocks
under higher than normal pressure and saturated with gas or
methane.
(5) Geothermal.--The term ``geothermal'' refers to heat
energy stored in the Earth's crust that can be accessed for
direct use or electric power generation.
(6) Hydrothermal.--The term ``hydrothermal'' refers to
naturally occurring subsurface reservoirs of hot water or steam.
(7) Systems approach.--The term ``systems approach'' means
an approach to solving problems or designing systems that
attempts to optimize the performance of the overall system,
rather than a particular component of the system.

SEC. 613. [NOTE: 42 USC 17192. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

(a) In General.--The Secretary shall support programs of research,
development, demonstration, and commercial application to expand the use
of geothermal energy production from hydrothermal systems, including the
programs described in subsection (b).
(b) Programs.--
(1) Advanced hydrothermal resource tools.--The Secretary, in
consultation with other appropriate agencies, shall support a
program to develop advanced geophysical, geochemical, and
geologic tools to assist in locating hidden hydrothermal
resources, and to increase the reliability of site
characterization before, during, and after initial drilling. The
program shall develop new prospecting techniques to assist in
prioritization of targets for characterization. The program
shall include a field component.
(2) Industry coupled exploratory drilling.--The Secretary
shall support a program of cost-shared field demonstration
programs, to be pursued, simultaneously and independently, in
collaboration with industry partners, for the demonstration of
advanced technologies and techniques of siting and exploratory
drilling for undiscovered resources in a variety of geologic
settings. The program shall include incentives to encourage the
use of advanced technologies and techniques.

[[Page 1680]]
121 STAT. 1680

SEC. 614. [NOTE: 42 USC 17193. GENERAL GEOTHERMAL SYSTEMS RESEARCH
AND DEVELOPMENT.

(a) Subsurface Components and Systems.--The Secretary shall support
a program of research, development, demonstration, and commercial
application of components and systems capable of withstanding extreme
geothermal environments and necessary to cost-effectively develop,
produce, and monitor geothermal reservoirs and produce geothermal
energy. These components and systems shall include advanced casing
systems (expandable tubular casing, low-clearance casing designs, and
others), high-temperature cements, high-temperature submersible pumps,
and high-temperature packers, as well as technologies for under-reaming,
multilateral completions, high-temperature and high-pressure logging,
logging while drilling, deep fracture stimulation, and reservoir system
diagnostics.
(b) Reservoir Performance Modeling.--The Secretary shall support a
program of research, development, demonstration, and commercial
application of models of geothermal reservoir performance, with an
emphasis on accurately modeling performance over time. Models shall be
developed to assist both in the development of geothermal reservoirs and
to more accurately account for stress-related effects in stimulated
hydrothermal and enhanced geothermal systems production environments.
(c) Environmental Impacts.--The Secretary shall--
(1) support a program of research, development,
demonstration, and commercial application of technologies and
practices designed to mitigate or preclude potential adverse
environmental impacts of geothermal energy development,
production or use, and seek to ensure that geothermal energy
development is consistent with the highest practicable standards
of environmental stewardship;
(2) in conjunction with the Assistant Administrator for
Research and Development at the Environmental Protection Agency,
support a research program to identify potential environmental
impacts of geothermal energy development, production, and use,
and ensure that the program described in paragraph (1) addresses
such impacts, including effects on groundwater and local
hydrology; and
(3) support a program of research to compare the potential
environmental impacts identified as part of the development,
production, and use of geothermal energy with the potential
emission reductions of greenhouse gases gained by geothermal
energy development, production, and use.

SEC. 615. [NOTE: 42 USC 17194. ENHANCED GEOTHERMAL SYSTEMS RESEARCH
AND DEVELOPMENT.

(a) In General.--The Secretary shall support a program of research,
development, demonstration, and commercial application for enhanced
geothermal systems, including the programs described in subsection (b).
(b) Programs.--
(1) Enhanced geothermal systems technologies.--The Secretary
shall support a program of research, development, demonstration,
and commercial application of the technologies and knowledge
necessary for enhanced geothermal systems to advance to a state
of commercial readiness, including advances in--

[[Page 1681]]
121 STAT. 1681

(A) reservoir stimulation;
(B) reservoir characterization, monitoring, and
modeling;
(C) stress mapping;
(D) tracer development;
(E) three-dimensional tomography; and
(F) understanding seismic effects of reservoir
engineering and stimulation.
(2) Enhanced geothermal systems reservoir stimulation.--
(A) Program.--In collaboration with industry
partners, the Secretary shall support a program of
research, development, and demonstration of enhanced
geothermal systems reservoir stimulation technologies
and techniques. A minimum of 4 sites shall be selected
in locations that show particular promise for enhanced
geothermal systems development. Each site shall--
(i) represent a different class of subsurface
geologic environments; and
(ii) take advantage of an existing site where
subsurface characterization has been conducted or
existing drill holes can be utilized, if possible.
(B) Consideration of existing site.--The Desert
Peak, Nevada, site, where a Department of Energy and
industry cooperative enhanced geothermal systems project
is already underway, may be considered for inclusion
among the sites selected under subparagraph (A).

SEC. 616. [NOTE: 42 USC 17195. GEOTHERMAL ENERGY PRODUCTION FROM OIL
AND GAS FIELDS AND RECOVERY AND PRODUCTION OF GEOPRESSURED
GAS RESOURCES.

(a) In General.--The Secretary shall establish a program of
research, development, demonstration, and commercial application to
support development of geothermal energy production from oil and gas
fields and production and recovery of energy, including electricity,
from geopressured resources. In addition, the Secretary shall conduct
such supporting activities including research, resource
characterization, and technology development as necessary.
(b) Geothermal Energy Production From Oil and Gas Fields.--The
Secretary shall implement a grant program in support of geothermal
energy production from oil and gas fields. The program shall include
grants for a total of not less than three demonstration projects of the
use of geothermal techniques such as advanced organic rankine cycle
systems at marginal, unproductive, and productive oil and gas
wells. [NOTE: Grants. The Secretary shall, to the extent practicable
and in the public interest, make awards that--
(1) include not less than five oil or gas well sites per
project award;
(2) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(3) cover a range of sizes up to one megawatt;
(4) are located at a range of sites;
(5) can be replicated at a wide range of sites;
(6) facilitate identification of optimum techniques among
competing alternatives;

[[Page 1682]]
121 STAT. 1682

(7) include business commercialization plans that have the
potential for production of equipment at high volumes and
operation and support at a large number of sites; and
(8) satisfy other criteria that the Secretary determines are
necessary to carry out the program and collect necessary data
and information.

The Secretary shall give preference to assessments that address multiple
elements contained in paragraphs (1) through (8).
(c) Grant Awards.--Each grant award for demonstration of geothermal
technology such as advanced organic rankine cycle systems at oil and gas
wells made by the Secretary under subsection (b) shall include--
(1) necessary and appropriate site engineering study;
(2) detailed economic assessment of site specific
conditions;
(3) appropriate feasibility studies to determine whether the
demonstration can be replicated;
(4) design or adaptation of existing technology for site
specific circumstances or conditions;
(5) installation of equipment, service, and support;
(6) operation for a minimum of 1 year and monitoring for the
duration of the demonstration; and
(7) validation of technical and economic assumptions and
documentation of lessons learned.

(d) Geopressured Gas Resource Recovery and Production.--(1) The
Secretary shall implement a program to support the research,
development, demonstration, and commercial application of cost-effective
techniques to produce energy from geopressured resources.
(2) The Secretary shall solicit preliminary engineering designs for
geopressured resources production and recovery facilities.
(3) Based upon a review of the preliminary designs, the Secretary
shall award grants, which may be cost-shared, to support the detailed
development and completion of engineering, architectural and technical
plans needed to support construction of new designs.
(4) Based upon a review of the final design plans above, the
Secretary shall award cost-shared development and construction grants
for demonstration geopressured production facilities that show potential
for economic recovery of the heat, kinetic energy and gas resources from
geopressured resources.
(e) Competitive Grant [NOTE: Deadline. Selection.--Not less than
90 days after the date of the enactment of this Act, the Secretary shall
conduct a national solicitation for applications for grants under the
programs outlined in subsections (b) and (d). Grant recipients shall be
selected on a competitive basis based on criteria in the respective
subsection.

(f) Well Drilling.--No funds may be used under this section for the
purpose of drilling new wells.

SEC. 617. [NOTE: 42 USC 17196. COST SHARING AND PROPOSAL EVALUATION.

(a) Federal Share.--The Federal share of costs of projects funded
under this subtitle shall be in accordance with section 988 of the
Energy Policy Act of 2005.
(b) Organization and Administration of Programs.--Programs under
this subtitle shall incorporate the following elements:
(1) The Secretary shall coordinate with, and where
appropriate may provide funds in furtherance of the purposes of

[[Page 1683]]
121 STAT. 1683

this subtitle to, other Department of Energy research and
development programs focused on drilling, subsurface
characterization, and other related technologies.
(2) In evaluating proposals, the Secretary shall give
priority to proposals that demonstrate clear evidence of
employing a systems approach.
(3) The Secretary shall coordinate and consult with the
appropriate Federal land management agencies in selecting
proposals for funding under this subtitle.
(4) Nothing in this subtitle shall be construed to alter or
affect any law relating to the management or protection of
Federal lands.

SEC. 618. [NOTE: 42 USC 17197. CENTER FOR GEOTHERMAL TECHNOLOGY
TRANSFER.

(a) In General.--The [NOTE: Grants. Secretary shall award to an
institution of higher education (or consortium thereof) a grant to
establish a Center for Geothermal Technology Transfer (referred to in
this section as the ``Center'').

(b) Duties.--The Center shall--
(1) serve as an information clearinghouse for the geothermal
industry by collecting and disseminating information on best
practices in all areas relating to developing and utilizing
geothermal resources;
(2) make data collected by the Center available to the
public; and
(3) seek opportunities to coordinate efforts and share
information with domestic and international partners engaged in
research and development of geothermal systems and related
technology.

(c) Selection Criteria.--In awarding the grant under subsection (a)
the Secretary shall select an institution of higher education (or
consortium thereof) best suited to provide national leadership on
geothermal related issues and perform the duties enumerated under
subsection (b).
(d) Duration of Grant.--A grant made under subsection (a)--
(1) shall be for an initial period of 5 years; and
(2) may be renewed for additional 5-year periods on the
basis of--
(A) satisfactory performance in meeting the duties
outlined in subsection (b); and
(B) any other requirements specified by the
Secretary.

SEC. 619. [NOTE: 42 USC 17198. GEOPOWERING AMERICA.

The Secretary shall expand the Department of Energy's GeoPowering
the West program to extend its geothermal technology transfer activities
throughout the entire United States. The program shall be renamed
``GeoPowering America''. The program shall continue to be based in the
Department of Energy office in Golden, Colorado.

SEC. 620. [NOTE: 42 USC 17199. EDUCATIONAL PILOT PROGRAM.

The Secretary shall seek to award grant funding, on a competitive
basis, to an institution of higher education for a geothermal-powered
energy generation facility on the institution's campus. The purpose of
the facility shall be to provide electricity and space heating. The
facility shall also serve as an educational resource to students in
relevant fields of study, and the data generated

[[Page 1684]]
121 STAT. 1684

by the facility shall be available to students and the general public.
The total funding award shall not exceed $2,000,000.

SEC. 621. [NOTE: 42 USC 17200. REPORTS.

(a) Reports on Advanced Uses of Geothermal Energy.--Not later than 3
years and 5 years after the date of enactment of this Act, the Secretary
shall report to the Committee on Science and Technology of the House of
Representatives and the Committee on Energy and Natural Resources of the
Senate on advanced concepts and technologies to maximize the geothermal
resource potential of the United States. The reports shall include--
(1) the use of carbon dioxide as an alternative geofluid
with potential carbon sequestration benefits;
(2) mineral recovery from geofluids;
(3) use of geothermal energy to produce hydrogen;
(4) use of geothermal energy to produce biofuels;
(5) use of geothermal heat for oil recovery from oil shales
and tar sands; and
(6) other advanced geothermal technologies, including
advanced drilling technologies and advanced power conversion
technologies.

(b) Progress Reports.--(1) Not later than 36 months after the date
of enactment of this Act, the Secretary shall submit to the Committee on
Science and Technology of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate an interim report
describing the progress made under this subtitle. At the end of 60
months, the Secretary shall submit to Congress a report on the results
of projects undertaken under this subtitle and other such information
the Secretary considers appropriate.
(2) As necessary, the Secretary shall report to the Congress on any
legal, regulatory, or other barriers encountered that hinder economic
development of these resources, and provide recommendations on
legislative or other actions needed to address such impediments.

SEC. 622. [NOTE: 42 USC 17201. APPLICABILITY OF OTHER LAWS.

Nothing in this subtitle shall be construed as waiving, modifying,
or superseding the applicability of any requirement under any
environmental or other Federal or State law. To the extent that
activities authorized in this subtitle take place in coastal and ocean
areas, the Secretary shall consult with the Secretary of Commerce,
acting through the Under Secretary of Commerce for Oceans and
Atmosphere, regarding the potential marine environmental impacts and
measures to address such impacts.

SEC. 623. [NOTE: 42 USC 17202. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to carry
out this subtitle $90,000,000 for each of the fiscal years 2008 through
2012, of which $10,000,000 for each fiscal year shall be for carrying
out section 616. There are also authorized to be appropriated to the
Secretary for the Intermountain West Geothermal Consortium $5,000,000
for each of the fiscal years 2008 through 2012.

SEC. 624. [NOTE: 42 USC 17203. INTERNATIONAL GEOTHERMAL ENERGY
DEVELOPMENT.

(a) In General.--The Secretary of Energy, in coordination with other
appropriate Federal and multilateral agencies (including

[[Page 1685]]
121 STAT. 1685

the United States Agency for International Development) shall support
international collaborative efforts to promote the research,
development, and deployment of geothermal technologies used to develop
hydrothermal and enhanced geothermal system resources, including as
partners (as appropriate) the African Rift Geothermal Development
Facility, Australia, China, France, the Republic of Iceland, India,
Japan, and the United Kingdom.
(b) United States Trade and Development Agency.--The Director of the
United States Trade and Development Agency may--
(1) encourage participation by United States firms in
actions taken to carry out subsection (a); and
(2) provide grants and other financial support for
feasibility and resource assessment studies conducted in, or
intended to benefit, less developed countries.

(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.

SEC. 625. [NOTE: 42 USC 17204. HIGH COST REGION GEOTHERMAL ENERGY
GRANT PROGRAM.

(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a utility;
(B) an electric cooperative;
(C) a State;
(D) a political subdivision of a State;
(E) an Indian tribe; or
(F) a Native corporation.
(2) High-cost region.--The term ``high-cost region'' means a
region in which the average cost of electrical power exceeds 150
percent of the national average retail cost, as determined by
the Secretary.

(b) Program.--The Secretary shall use amounts made available to
carry out this section to make grants to eligible entities for
activities described in subsection (c).
(c) Eligible Activities.--An eligible entity may use grant funds
under this section, with respect to a geothermal energy project in a
high-cost region, only--
(1) to conduct a feasibility study, including a study of
exploration, geochemical testing, geomagnetic surveys, geologic
information gathering, baseline environmental studies, well
drilling, resource characterization, permitting, and economic
analysis;
(2) for design and engineering costs, relating to the
project; and
(3) to demonstrate and promote commercial application of
technologies related to geothermal energy as part of the
project.

(d) Cost Sharing.--The cost-sharing requirements of section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to any
project carried out under this section.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

[[Page 1686]]
121 STAT. 1686

Subtitle C--Marine [NOTE: Marine and Hydrokinetic Renewable Energy
Research and Development Act. and Hydrokinetic Renewable Energy
Technologies

SEC. 631. [NOTE: 42 USC 17001 note. SHORT TITLE.

This subtitle may be cited as the ``Marine and Hydrokinetic
Renewable Energy Research and Development Act''.

SEC. 632. [NOTE: 42 USC 17211. DEFINITION.

For purposes of this subtitle, the term ``marine and hydrokinetic
renewable energy'' means electrical energy from--
(1) waves, tides, and currents in oceans, estuaries, and
tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels; and
(4) differentials in ocean temperature (ocean thermal energy
conversion).

The term ``marine and hydrokinetic renewable energy'' does not include
energy from any source that uses a dam, diversionary structure, or
impoundment for electric power purposes.

SEC. 633. [NOTE: 42 USC 17212. MARINE AND HYDROKINETIC RENEWABLE
ENERGY RESEARCH AND DEVELOPMENT.

(a) In General.--The Secretary, in consultation with the Secretary
of the Interior and the Secretary of Commerce, acting through the Under
Secretary of Commerce for Oceans and Atmosphere, shall establish a
program of research, development, demonstration, and commercial
application to expand marine and hydrokinetic renewable energy
production, including programs to--
(1) study and compare existing marine and hydrokinetic
renewable energy technologies;
(2) research, develop, and demonstrate marine and
hydrokinetic renewable energy systems and technologies;
(3) reduce the manufacturing and operation costs of marine
and hydrokinetic renewable energy technologies;
(4) investigate efficient and reliable integration with the
utility grid and intermittency issues;
(5) advance wave forecasting technologies;
(6) conduct experimental and numerical modeling for
optimization of marine energy conversion devices and arrays;
(7) increase the reliability and survivability of marine and
hydrokinetic renewable energy technologies, including
development of corrosive-resistant materials;
(8) identify, in conjunction with the Secretary of Commerce,
acting through the Under Secretary of Commerce for Oceans and
Atmosphere, and other Federal agencies as appropriate, the
potential environmental impacts, including potential impacts on
fisheries and other marine resources, of marine and hydrokinetic
renewable energy technologies, measures to prevent adverse
impacts, and technologies and other means available for
monitoring and determining environmental impacts;
(9) identify, in conjunction with the Secretary of the
Department in which the United States Coast Guard is operating,
acting through the Commandant of the United States Coast Guard,
the potential navigational impacts of marine and

[[Page 1687]]
121 STAT. 1687

hydrokinetic renewable energy technologies and measures to
prevent adverse impacts on navigation;
(10) develop power measurement standards for marine and
hydrokinetic renewable energy;
(11) develop identification standards for marine and
hydrokinetic renewable energy devices;
(12) address standards development, demonstration, and
technology transfer for advanced systems engineering and system
integration methods to identify critical interfaces;
(13) identifying opportunities for cross fertilization and
development of economies of scale between other renewable
sources and marine and hydrokinetic renewable energy sources;
and
(14) providing public information and opportunity for public
comment concerning all technologies.

(b) Report.--Not later than 18 months after the date of enactment of
this Act, the Secretary, in conjunction with the Secretary of Commerce,
acting through the Undersecretary of Commerce for Oceans and Atmosphere,
and the Secretary of the Interior, shall provide to the Congress a
report that addresses--
(1) the potential environmental impacts, including impacts
to fisheries and marine resources, of marine and hydrokinetic
renewable energy technologies;
(2) options to prevent adverse environmental impacts;
(3) the potential role of monitoring and adaptive management
in identifying and addressing any adverse environmental impacts;
and
(4) the necessary components of such an adaptive management
program.

SEC. 634. [NOTE: 42 USC 17213. NATIONAL MARINE RENEWABLE ENERGY
RESEARCH, DEVELOPMENT, AND DEMONSTRATION CENTERS.

(a) Centers.--The [NOTE: Grants. Secretary shall award grants to
institutions of higher education (or consortia thereof) for the
establishment of 1 or more National Marine Renewable Energy Research,
Development, and Demonstration Centers. In selecting locations for
Centers, the Secretary shall consider sites that meet one of the
following criteria:
(1) Hosts an existing marine renewable energy research and
development program in coordination with an engineering program
at an institution of higher education.
(2) Has proven expertise to support environmental and
policy-related issues associated with harnessing of energy in
the marine environment.
(3) Has access to and utilizes the marine resources in the
Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean.

The Secretary may give special consideration to historically black
colleges and universities and land grant universities that also meet one
of these criteria. In establishing criteria for the selection of the
Centers, the Secretary shall consult with the Secretary of Commerce,
acting through the Under Secretary of Commerce for Oceans and
Atmosphere, on the criteria related to ocean waves, tides, and currents
including those for advancing wave forecasting technologies, ocean
temperature differences, and studying the compatibility of marine
renewable energy technologies and systems with the environment,
fisheries, and other marine resources.

[[Page 1688]]
121 STAT. 1688

(b) Purposes.--The Centers shall advance research, development,
demonstration, and commercial application of marine renewable energy,
and shall serve as an information clearinghouse for the marine renewable
energy industry, collecting and disseminating information on best
practices in all areas related to developing and managing enhanced
marine renewable energy systems resources.
(c) Demonstration of Need.--When applying for a grant under this
section, an applicant shall include a description of why Federal support
is necessary for the Center, including evidence that the research of the
Center will not be conducted in the absence of Federal support.

SEC. 635. [NOTE: 42 USC 17214. APPLICABILITY OF OTHER LAWS.

Nothing in this subtitle shall be construed as waiving, modifying,
or superseding the applicability of any requirement under any
environmental or other Federal or State law.

SEC. 636. [NOTE: 42 USC 17215. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to carry
out this subtitle $50,000,000 for each of the fiscal years 2008 through
2012, except that no funds shall be appropriated under this section for
activities that are receiving funds under section 931(a)(2)(E)(i) of the
Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).

Subtitle D--Energy [NOTE: United States Energy Storage Competitiveness
Act of 2007. Storage for Transportation and Electric Power

SEC. 641. [NOTE: 42 USC 17231. ENERGY STORAGE COMPETITIVENESS.

(a) Short Title.--This section may be cited as the ``United States
Energy Storage Competitiveness Act of 2007''.
(b) Definitions.--In this section:
(1) Council.--The term ``Council'' means the Energy Storage
Advisory Council established under subsection (e).
(2) Compressed air energy storage.--The term ``compressed
air energy storage'' means, in the case of an electricity grid
application, the storage of energy through the compression of
air.
(3) Electric drive vehicle.--The term ``electric drive
vehicle'' means--
(A) a vehicle that uses an electric motor for all or
part of the motive power of the vehicle, including
battery electric, hybrid electric, plug-in hybrid
electric, fuel cell, and plug-in fuel cell vehicles and
rail transportation vehicles; or
(B) mobile equipment that uses an electric motor to
replace an internal combustion engine for all or part of
the work of the equipment.
(4) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(5) Flywheel.--The term ``flywheel'' means, in the case of
an electricity grid application, a device used to store
rotational kinetic energy.

[[Page 1689]]
121 STAT. 1689

(6) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and distributed
energy resources (including generators and energy storage
devices), which as an integrated system can operate in parallel
with the utility grid or in an intentional islanding mode.
(7) Self-healing grid.--The term ``self-healing grid'' means
a grid that is capable of automatically anticipating and
responding to power system disturbances (including the isolation
of failed sections and components), while optimizing the
performance and service of the grid to customers.
(8) Spinning reserve services.--The term ``spinning reserve
services'' means a quantity of electric generating capacity in
excess of the quantity needed to meet peak electric demand.
(9) Ultracapacitor.--The term ``ultracapacitor'' means an
energy storage device that has a power density comparable to a
conventional capacitor but is capable of exceeding the energy
density of a conventional capacitor by several orders of
magnitude.

(c) Program.--The Secretary shall carry out a research, development,
and demonstration program to support the ability of the United States to
remain globally competitive in energy storage systems for electric drive
vehicles, stationary applications, and electricity transmission and
distribution.
(d) Coordination.--In carrying out the activities of this section,
the Secretary shall coordinate relevant efforts with appropriate Federal
agencies, including the Department of Transportation.
(e) Energy Storage Advisory Council.--
(1) Establishment.--Not [NOTE: Deadline. later than 90
days after the date of enactment of this Act, the Secretary
shall establish an Energy Storage Advisory Council.
(2) Composition.--
(A) In general.--Subject to subparagraph (B), the
Council shall consist of not less than 15 individuals
appointed by the Secretary, based on recommendations of
the National Academy of Sciences.
(B) Energy storage industry.--The Council shall
consist primarily of representatives of the energy
storage industry of the United States.
(C) Chairperson.--The Secretary shall select a
Chairperson for the Council from among the members
appointed under subparagraph (A).
(3) Meetings.--
(A) In general.--The Council shall meet not less
than once a year.
(B) Federal advisory committee act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall apply to a
meeting of the Council.
(4) Plans.--No [NOTE: Deadlines. later than 1 year after
the date of enactment of this Act and every 5 years thereafter,
the Council, in conjunction with the Secretary, shall develop a
5-year plan for integrating basic and applied research so that
the United States retains a globally competitive domestic energy
storage industry for electric drive vehicles, stationary
applications, and electricity transmission and distribution.
(5) Review.--The Council shall--

[[Page 1690]]
121 STAT. 1690

(A) [NOTE: Deadline. assess, every 2 years, the
performance of the Department in meeting the goals of
the plans developed under paragraph (4); and
(B) make specific recommendations to the Secretary
on programs or activities that should be established or
terminated to meet those goals.

(f) Basic Research Program.--
(1) Basic research.--The Secretary shall conduct a basic
research program on energy storage systems to support electric
drive vehicles, stationary applications, and electricity
transmission and distribution, including--
(A) materials design;
(B) materials synthesis and characterization;
(C) electrode-active materials, including
electrolytes and bioelectrolytes;
(D) surface and interface dynamics;
(E) modeling and simulation; and
(F) thermal behavior and life degradation
mechanisms.
(2) Nanoscience centers.--The Secretary, in cooperation with
the Council, shall coordinate the activities of the nanoscience
centers of the Department to help the energy storage research
centers of the Department maintain a globally competitive
posture in energy storage systems for electric drive vehicles,
stationary applications, and electricity transmission and
distribution.
(3) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall award funds to, and coordinate
activities with, a range of stakeholders including the public,
private, and academic sectors.

(g) Applied Research Program.--
(1) In general.--The Secretary shall conduct an applied
research program on energy storage systems to support electric
drive vehicles, stationary applications, and electricity
transmission and distribution technologies, including--
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including flow
batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy storage
systems;
(G) thermal management systems; and
(H) hydrogen as an energy storage medium.
(2) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall provide funds to, and
coordinate activities with, a range of stakeholders, including
the public, private, and academic sectors.

(h) Energy Storage Research Centers.--
(1) In general.--The Secretary shall establish, through
competitive bids, not more than 4 energy storage research
centers to translate basic research into applied technologies to
advance the capability of the United States to maintain a
globally competitive posture in energy storage systems for

[[Page 1691]]
121 STAT. 1691

electric drive vehicles, stationary applications, and
electricity transmission and distribution.
(2) Program management.--The centers shall be managed by the
Under Secretary for Science of the Department.
(3) Participation agreements.--As a condition of
participating in a center, a participant shall enter into a
participation agreement with the center that requires that
activities conducted by the participant for the center promote
the goal of enabling the United States to compete successfully
in global energy storage markets.
(4) Plans.--A center shall conduct activities that promote
the achievement of the goals of the plans of the Council under
subsection (e)(4).
(5) National laboratories.--A national laboratory (as
defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801)) may participate in a center established under this
subsection, including a cooperative research and development
agreement (as defined in section 12(d) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710a(d))).
(6) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
through a grant, contract, or cooperative agreement under this
subsection.
(7) Intellectual property.--In accordance with section
202(a)(ii) of title 35, United States Code, section 152 of the
Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 of the
Federal Nonnuclear Energy Research and Development Act of 1974
(42 U.S.C. 5908), the Secretary may require, for any new
invention developed under this subsection, that--
(A) if an industrial participant is active in a
energy storage research center established under this
subsection relating to the advancement of energy storage
technologies carried out, in whole or in part, with
Federal funding, the industrial participant be granted
the first option to negotiate with the invention owner,
at least in the field of energy storage technologies,
nonexclusive licenses, and royalties on terms that are
reasonable, as determined by the Secretary;
(B) if 1 or more industry participants are active in
a center, during a 2-year period beginning on the date
on which an invention is made--
(i) the patent holder shall not negotiate any
license or royalty agreement with any entity that
is not an industrial participant under this
subsection; and
(ii) the patent holder shall negotiate
nonexclusive licenses and royalties in good faith
with any interested industrial participant under
this subsection; and
(C) the new invention be developed under such other
terms as the Secretary determines to be necessary to
promote the accelerated commercialization of inventions
made under this subsection to advance the capability of
the United States to successfully compete in global
energy storage markets.

(i) Energy Storage Systems Demonstrations.--
(1) In general.--The Secretary shall carry out a program of
new demonstrations of advanced energy storage systems.

[[Page 1692]]
121 STAT. 1692

(2) Scope.--The demonstrations shall--
(A) be regionally diversified; and
(B) expand on the existing technology demonstration
program of the Department.
(3) Stakeholders.--In carrying out the demonstrations, the
Secretary shall, to the maximum extent practicable, include the
participation of a range of stakeholders, including--
(A) rural electric cooperatives;
(B) investor owned utilities;
(C) municipally owned electric utilities;
(D) energy storage systems manufacturers;
(E) electric drive vehicle manufacturers;
(F) the renewable energy production industry;
(G) State or local energy offices;
(H) the fuel cell industry; and
(I) institutions of higher education.
(4) Objectives.--Each of the demonstrations shall include 1
or more of the following:
(A) Energy storage to improve the feasibility of
microgrids or islanding, or transmission and
distribution capability, to improve reliability in rural
areas.
(B) Integration of an energy storage system with a
self-healing grid.
(C) Use of energy storage to improve security to
emergency response infrastructure and ensure
availability of emergency backup power for consumers.
(D) Integration with a renewable energy production
source, at the source or away from the source.
(E) Use of energy storage to provide ancillary
services, such as spinning reserve services, for grid
management.
(F) Advancement of power conversion systems to make
the systems smarter, more efficient, able to communicate
with other inverters, and able to control voltage.
(G) Use of energy storage to optimize transmission
and distribution operation and power quality, which
could address overloaded lines and maintenance of
transformers and substations.
(H) Use of advanced energy storage for peak load
management of homes, businesses, and the grid.
(I) Use of energy storage devices to store energy
during nonpeak generation periods to make better use of
existing grid assets.

(j) Vehicle Energy Storage Demonstration.--
(1) In general.--The Secretary shall carry out a program of
electric drive vehicle energy storage technology demonstrations.
(2) Consortia.--The technology demonstrations shall be
conducted through consortia, which may include--
(A) energy storage systems manufacturers and
suppliers of the manufacturers;
(B) electric drive vehicle manufacturers;
(C) rural electric cooperatives;
(D) investor owned utilities;
(E) municipal and rural electric utilities;
(F) State and local governments;
(G) metropolitan transportation authorities; and
(H) institutions of higher education.

[[Page 1693]]
121 STAT. 1693

(3) Objectives.--The program shall demonstrate 1 or more of
the following:
(A) Novel, high capacity, high efficiency energy
storage, charging, and control systems, along with the
collection of data on performance characteristics, such
as battery life, energy storage capacity, and power
delivery capacity.
(B) Advanced onboard energy management systems and
highly efficient battery cooling systems.
(C) Integration of those systems on a prototype
vehicular platform, including with drivetrain systems
for passenger, commercial, and nonroad electric drive
vehicles.
(D) New technologies and processes that reduce
manufacturing costs.
(E) Integration of advanced vehicle technologies
with electricity distribution system and smart metering
technology.
(F) Control systems that minimize emissions profiles
in cases in which clean diesel engines are part of a
plug-in hybrid drive system.

(k) Secondary Applications and Disposal of Electric Drive Vehicle
Batteries.--The Secretary shall carry out a program of research,
development, and demonstration of--
(1) secondary applications of energy storage devices
following service in electric drive vehicles; and
(2) technologies and processes for final recycling and
disposal of the devices.

(l) Cost Sharing.--The Secretary shall carry out the programs
established under this section in accordance with section 988 of the
Energy Policy Act of 2005 (42 U.S.C. 16352).
(m) Merit Review of Proposals.--The Secretary shall carry out the
programs established under subsections (i), (j), and (k) in accordance
with section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353).
(n) Coordination and Nonduplication.--To the maximum extent
practicable, the Secretary shall coordinate activities under this
section with other programs and laboratories of the Department and other
Federal research programs.
(o) Review by National Academy of Sciences.--
On [NOTE: Deadline. Contracts.  the business day that is 5 years
after the date of enactment of this Act, the Secretary shall offer to
enter into an arrangement with the National Academy of Sciences to
assess the performance of the Department in carrying out this section.

(p) Authorization of Appropriations.--There are authorized to be
appropriated to carry out--
(1) the basic research program under subsection (f)
$50,000,000 for each of fiscal years 2009 through 2018;
(2) the applied research program under subsection (g)
$80,000,000 for each of fiscal years 2009 through 2018; and;
(3) the energy storage research center program under
subsection (h) $100,000,000 for each of fiscal years 2009
through 2018;
(4) the energy storage systems demonstration program under
subsection (i) $30,000,000 for each of fiscal years 2009 through
2018;
(5) the vehicle energy storage demonstration program under
subsection (j) $30,000,000 for each of fiscal years 2009 through
2018; and

[[Page 1694]]
121 STAT. 1694

(6) the secondary applications and disposal of electric
drive vehicle batteries program under subsection (k) $5,000,000
for each of fiscal years 2009 through 2018.

Subtitle E--Miscellaneous Provisions

SEC. 651. [NOTE: 42 USC 17241.  LIGHTWEIGHT MATERIALS RESEARCH AND
DEVELOPMENT.

(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary of Energy shall establish a program to
determine ways in which the weight of motor vehicles could be reduced to
improve fuel efficiency without compromising passenger safety by
conducting research, development, and demonstration relating to--
(1) the development of new materials (including cast metal
composite materials formed by autocombustion synthesis) and
material processes that yield a higher strength-to-weight ratio
or other properties that reduce vehicle weight; and
(2) reducing the cost of--
(A) lightweight materials (including high-strength
steel alloys, aluminum, magnesium, metal composites, and
carbon fiber reinforced polymer composites) with the
properties required for construction of lighter-weight
vehicles; and
(B) materials processing, automated manufacturing,
joining, and recycling lightweight materials for high-
volume applications.

(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $80,000,000 for the period of
fiscal years 2008 through 2012.

SEC. 652. [NOTE: 42 USC 17242.  COMMERCIAL INSULATION DEMONSTRATION
PROGRAM.

(a) Definitions.--In this section:
(1) Advanced insulation.--The term ``advanced insulation''
means insulation that has an R value of not less than R35 per
inch.
(2) Covered refrigeration unit.--The term ``covered
refrigeration unit'' means any--
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; or
(C) commercial refrigerator, freezer, or
refrigerator-freezer described in section 342(c) of the
Energy Policy and Conservation Act (42 U.S.C. 6313(c)).

(b) Report.--Not later than 90 days after the date of enactment of
this Act, the Secretary shall submit to Congress a report that includes
an evaluation of--
(1) the state of technological advancement of advanced
insulation; and
(2) the projected amount of cost savings that would be
generated by implementing advanced insulation into covered
refrigeration units.

(c) Demonstration Program.--
(1) Establishment.--If the Secretary determines in the
report described in subsection (b) that the implementation of
advanced insulation into covered refrigeration units would
generate an economically justifiable amount of cost savings, the

[[Page 1695]]
121 STAT. 1695

Secretary, in cooperation with manufacturers of covered
refrigeration units, shall establish a demonstration program
under which the Secretary shall demonstrate the cost-
effectiveness of advanced insulation.
(2) Disclosure.--The Secretary may, for a period of up to 5
years after an award is granted under the demonstration program,
exempt from mandatory disclosure under section 552 of title 5,
United States Code (popularly known as the Freedom of
Information Act) information that the Secretary determines would
be a privileged or confidential trade secret or commercial or
financial information under subsection (b)(4) of such section if
the information had been obtained from a non-Government party.
(3) [NOTE: Applicability.  Cost-sharing.--Section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to
any project carried out under this subsection.

(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000 for the period of
fiscal years 2009 through 2014.

SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.

Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42 U.S.C.
15962(b)(1)(B)(ii)) is amended by striking subclause (I) and inserting
the following:
``(I)(aa) to remove at least 99
percent of sulfur dioxide; or
``(bb) to emit not more than 0.04
pound SO2 per million Btu,
based on a 30-day average;''.

SEC. 654. H-PRIZE.

Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is
amended by adding at the end the following new subsection:
``(f) H-Prize.--
``(1) Prize authority.--
``(A) In general.--As part of the program under this
section, the Secretary shall carry out a program to
competitively award cash prizes in conformity with this
subsection to advance the research, development,
demonstration, and commercial application of hydrogen
energy technologies.
``(B) Advertising and solicitation of competitors.--
``(i) Advertising.--The Secretary shall widely
advertise prize competitions under this subsection
to encourage broad participation, including by
individuals, universities (including historically
Black colleges and universities and other minority
serving institutions), and large and small
businesses (including businesses owned or
controlled by socially and economically
disadvantaged persons).
``(ii) Announcement through federal register
notice.--The Secretary shall announce each prize
competition under this subsection by publishing a
notice in the Federal Register. This notice shall
include essential elements of the competition such
as the subject of the competition, the duration of
the competition, the eligibility requirements for
participation in the competition, the process for
participants to register for the competition, the
amount of the prize, and the criteria for awarding
the prize.

[[Page 1696]]
121 STAT. 1696

``(C) [NOTE: Contracts.  Administering the
competitions.--The Secretary shall enter into an
agreement with a private, nonprofit entity to administer
the prize competitions under this subsection, subject to
the provisions of this subsection (in this subsection
referred to as the `administering entity'). The duties
of the administering entity under the agreement shall
include--
``(i) advertising prize competitions under
this subsection and their results;
``(ii) raising funds from private entities and
individuals to pay for administrative costs and to
contribute to cash prizes, including funds
provided in exchange for the right to name a prize
awarded under this subsection;
``(iii) developing, in consultation with and
subject to the final approval of the Secretary,
the criteria for selecting winners in prize
competitions under this subsection, based on goals
provided by the Secretary;
``(iv) determining, in consultation with the
Secretary, the appropriate amount and funding
sources for each prize to be awarded under this
subsection, subject to the final approval of the
Secretary with respect to Federal funding;
``(v) providing advice and consultation to the
Secretary on the selection of judges in accordance
with paragraph (2)(D), using criteria developed in
consultation with and subject to the final
approval of the Secretary; and
``(vi) protecting against the administering
entity's unauthorized use or disclosure of a
registered participant's trade secrets and
confidential business information. Any information
properly identified as trade secrets or
confidential business information that is
submitted by a participant as part of a
competitive program under this subsection may be
withheld from public disclosure.
``(D) Funding sources.--Prizes under this subsection
shall consist of Federal appropriated funds and any
funds provided by the administering entity (including
funds raised pursuant to subparagraph (C)(ii)) for such
cash prize programs. The Secretary may accept funds from
other Federal agencies for such cash prizes and,
notwithstanding section 3302(b) of title 31, United
States Code, may use such funds for the cash prize
program under this subsection. Other than publication of
the names of prize sponsors, the Secretary may not give
any special consideration to any private sector entity
or individual in return for a donation to the Secretary
or administering entity.
``(E) Announcement of prizes.--The Secretary may not
issue a notice required by subparagraph (B)(ii) until
all the funds needed to pay out the announced amount of
the prize have been appropriated or committed in writing
by the administering entity. The Secretary may increase
the amount of a prize after an initial announcement is
made under subparagraph (B)(ii) if--
``(i) notice of the increase is provided in
the same manner as the initial notice of the
prize; and

[[Page 1697]]
121 STAT. 1697

``(ii) the funds needed to pay out the
announced amount of the increase have been
appropriated or committed in writing by the
administering entity.
``(F) Sunset.--The authority to announce prize
competitions under this subsection shall terminate on
September 30, 2018.
``(2) Prize categories.--
``(A) Categories.--The Secretary shall establish
prizes under this subsection for--
``(i) advancements in technologies,
components, or systems related to--
``(I) hydrogen production;
``(II) hydrogen storage;
``(III) hydrogen distribution; and
``(IV) hydrogen utilization;
``(ii) prototypes of hydrogen-powered vehicles
or other hydrogen-based products that best meet or
exceed objective performance criteria, such as
completion of a race over a certain distance or
terrain or generation of energy at certain levels
of efficiency; and
``(iii) transformational changes in
technologies for the distribution or production of
hydrogen that meet or exceed far-reaching
objective criteria, which shall include minimal
carbon emissions and which may include cost
criteria designed to facilitate the eventual
market success of a winning technology.
``(B) Awards.--
``(i) Advancements.--To the extent permitted
under paragraph (1)(E), the prizes authorized
under subparagraph (A)(i) shall be awarded
biennially to the most significant advance made in
each of the four subcategories described in
subclauses (I) through (IV) of subparagraph (A)(i)
since the submission deadline of the previous
prize competition in the same category under
subparagraph (A)(i) or the date of enactment of
this subsection, whichever is later, unless no
such advance is significant enough to merit an
award. No one such prize may exceed $1,000,000. If
less than $4,000,000 is available for a prize
competition under subparagraph (A)(i), the
Secretary may omit one or more subcategories,
reduce the amount of the prizes, or not hold a
prize competition.
``(ii) Prototypes.--To the extent permitted
under paragraph (1)(E), prizes authorized under
subparagraph (A)(ii) shall be awarded biennially
in alternate years from the prizes authorized
under subparagraph (A)(i). The Secretary is
authorized to award up to one prize in this
category in each 2-year period. No such prize may
exceed $4,000,000. If no registered participants
meet the objective performance criteria
established pursuant to subparagraph (C) for a
competition under this clause, the Secretary shall
not award a prize.
``(iii) Transformational technologies.--To the
extent permitted under paragraph (1)(E), the
Secretary shall announce one prize competition
authorized under

[[Page 1698]]
121 STAT. 1698

subparagraph (A)(iii) as soon after the date of
enactment of this subsection as is practicable. A
prize offered under this clause shall be not less
than $10,000,000, paid to the winner in a lump
sum, and an additional amount paid to the winner
as a match for each dollar of private funding
raised by the winner for the hydrogen technology
beginning on the date the winner was named. The
match shall be provided for 3 years after the date
the prize winner is named or until the full amount
of the prize has been paid out, whichever occurs
first. A prize winner may elect to have the match
amount paid to another entity that is continuing
the development of the winning technology. The
Secretary shall announce the rules for receiving
the match in the notice required by paragraph
(1)(B)(ii). The Secretary shall award a prize
under this clause only when a registered
participant has met the objective criteria
established for the prize pursuant to subparagraph
(C) and announced pursuant to paragraph
(1)(B)(ii). Not more than $10,000,000 in Federal
funds may be used for the prize award under this
clause. The administering entity shall seek to
raise $40,000,000 toward the matching award under
this clause.
``(C) Criteria.--In establishing the criteria
required by this subsection, the Secretary--
``(i) shall consult with the Department's
Hydrogen Technical and Fuel Cell Advisory
Committee;
``(ii) shall consult with other Federal
agencies, including the National Science
Foundation; and
``(iii) may consult with other experts such as
private organizations, including professional
societies, industry associations, and the National
Academy of Sciences and the National Academy of
Engineering.
``(D) Judges.--For each prize competition under this
subsection, the Secretary in consultation with the
administering entity shall assemble a panel of qualified
judges to select the winner or winners on the basis of
the criteria established under subparagraph (C). Judges
for each prize competition shall include individuals
from outside the Department, including from the private
sector. A judge, spouse, minor children, and members of
the judge's household may not--
``(i) have personal or financial interests in,
or be an employee, officer, director, or agent of,
any entity that is a registered participant in the
prize competition for which he or she will serve
as a judge; or
``(ii) have a familial or financial
relationship with an individual who is a
registered participant in the prize competition
for which he or she will serve as a judge.
``(3) Eligibility.--To be eligible to win a prize under this
subsection, an individual or entity--
``(A) shall have complied with all the requirements
in accordance with the Federal Register notice required
under paragraph (1)(B)(ii);

[[Page 1699]]
121 STAT. 1699

``(B) in the case of a private entity, shall be
incorporated in and maintain a primary place of business
in the United States, and in the case of an individual,
whether participating singly or in a group, shall be a
citizen of, or an alien lawfully admitted for permanent
residence in, the United States; and
``(C) shall not be a Federal entity, a Federal
employee acting within the scope of his employment, or
an employee of a national laboratory acting within the
scope of his employment.
``(4) Intellectual property.--The Federal Government shall
not, by virtue of offering or awarding a prize under this
subsection, be entitled to any intellectual property rights
derived as a consequence of, or direct relation to, the
participation by a registered participant in a competition
authorized by this subsection. This paragraph shall not be
construed to prevent the Federal Government from negotiating a
license for the use of intellectual property developed for a
prize competition under this subsection.
``(5) Liability.--
``(A) Waiver of liability.--The Secretary may
require registered participants to waive claims against
the Federal Government and the administering entity
(except claims for willful misconduct) for any injury,
death, damage, or loss of property, revenue, or profits
arising from the registered participants' participation
in a competition under this subsection. The Secretary
shall give notice of any waiver required under this
subparagraph in the notice required by paragraph
(1)(B)(ii). The Secretary may not require a registered
participant to waive claims against the administering
entity arising out of the unauthorized use or disclosure
by the administering entity of the registered
participant's trade secrets or confidential business
information.
``(B) Liability insurance.--
``(i) Requirements.--Registered participants
in a prize competition under this subsection shall
be required to obtain liability insurance or
demonstrate financial responsibility, in amounts
determined by the Secretary, for claims by--
``(I) a third party for death,
bodily injury, or property damage or
loss resulting from an activity carried
out in connection with participation in
a competition under this subsection; and
``(II) the Federal Government for
damage or loss to Government property
resulting from such an activity.
``(ii) Federal government insured.--The
Federal Government shall be named as an additional
insured under a registered participant's insurance
policy required under clause (i)(I), and
registered participants shall be required to agree
to indemnify the Federal Government against third
party claims for damages arising from or related
to competition activities under this subsection.
``(6) Report to congress.--Not later than 60 days after the
awarding of the first prize under this subsection, and

[[Page 1700]]
121 STAT. 1700

annually thereafter, the Secretary shall transmit to the
Congress a report that--
``(A) identifies each award recipient;
``(B) describes the technologies developed by each
award recipient; and
``(C) specifies actions being taken toward
commercial application of all technologies with respect
to which a prize has been awarded under this subsection.
``(7) Authorization of appropriations.--
``(A) In general.--
``(i) Awards.--There are authorized to be
appropriated to the Secretary for the period
encompassing fiscal years 2008 through 2017 for
carrying out this subsection--
``(I) $20,000,000 for awards
described in paragraph (2)(A)(i);
``(II) $20,000,000 for awards
described in paragraph (2)(A)(ii); and
``(III) $10,000,000 for the award
described in paragraph (2)(A)(iii).
``(ii) Administration.--In addition to the
amounts authorized in clause (i), there are
authorized to be appropriated to the Secretary for
each of fiscal years 2008 and 2009 $2,000,000 for
the administrative costs of carrying out this
subsection.
``(B) Carryover of funds.--Funds appropriated for
prize awards under this subsection shall remain
available until expended, and may be transferred,
reprogrammed, or expended for other purposes only after
the expiration of 10 fiscal years after the fiscal year
for which the funds were originally appropriated. No
provision in this subsection permits obligation or
payment of funds in violation of section 1341 of title
31 of the United States Code (commonly referred to as
the Anti-Deficiency Act).
``(8) Nonsubstitution.--The programs created under this
subsection shall not be considered a substitute for Federal
research and development programs.''.

SEC. 655. [NOTE: 42 USC 17243.  BRIGHT TOMORROW LIGHTING PRIZES.

(a) Establishment.--Not [NOTE: Deadline.  later than 1 year after
the date of enactment of this Act, as part of the program carried out
under section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396),
the Secretary shall establish and award Bright Tomorrow Lighting Prizes
for solid state lighting in accordance with this section.

(b) Prize Specifications.--
(1) 60-watt incandescent replacement lamp prize.--The
Secretary shall award a 60-Watt Incandescent Replacement Lamp
Prize to an entrant that produces a solid-state-light package
simultaneously capable of--
(A) producing a luminous flux greater than 900
lumens;
(B) consuming less than or equal to 10 watts;
(C) having an efficiency greater than 90 lumens per
watt;
(D) having a color rendering index greater than 90;
(E) having a correlated color temperature of not
less than 2,750, and not more than 3,000, degrees
Kelvin;

[[Page 1701]]
121 STAT. 1701

(F) having 70 percent of the lumen value under
subparagraph (A) exceeding 25,000 hours under typical
conditions expected in residential use;
(G) having a light distribution pattern similar to a
soft 60-watt incandescent A19 bulb;
(H) having a size and shape that fits within the
maximum dimensions of an A19 bulb in accordance with
American National Standards Institute standard C78.20-
2003, figure C78.20-211;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing commercially
accepted quality control lots of such units equal to or
exceeding the criteria described in subparagraphs (A)
through (I).
(2) PAR type 38 halogen replacement lamp prize.--The
Secretary shall award a Parabolic Aluminized Reflector Type 38
Halogen Replacement Lamp Prize (referred to in this section as
the ``PAR Type 38 Halogen Replacement Lamp Prize'') to an
entrant that produces a solid-state-light package simultaneously
capable of--
(A) producing a luminous flux greater than or equal
to 1,350 lumens;
(B) consuming less than or equal to 11 watts;
(C) having an efficiency greater than 123 lumens per
watt;
(D) having a color rendering index greater than or
equal to 90;
(E) having a correlated color coordinate temperature
of not less than 2,750, and not more than 3,000, degrees
Kelvin;
(F) having 70 percent of the lumen value under
subparagraph (A) exceeding 25,000 hours under typical
conditions expected in residential use;
(G) having a light distribution pattern similar to a
PAR 38 halogen lamp;
(H) having a size and shape that fits within the
maximum dimensions of a PAR 38 halogen lamp in
accordance with American National Standards Institute
standard C78-21-2003, figure C78.21-238;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing commercially
accepted quality control lots of such units equal to or
exceeding the criteria described in subparagraphs (A)
through (I).
(3) Twenty-first century lamp prize.--The Secretary shall
award a Twenty-First Century Lamp Prize to an entrant that
produces a solid-state-light-light capable of--
(A) producing a light output greater than 1,200
lumens;
(B) having an efficiency greater than 150 lumens per
watt;
(C) having a color rendering index greater than 90;
(D) having a color coordinate temperature between
2,800 and 3,000 degrees Kelvin; and
(E) having a lifetime exceeding 25,000 hours.

(c) Private Funds.--

[[Page 1702]]
121 STAT. 1702

(1) In general.--Subject to paragraph (2), and
notwithstanding section 3302 of title 31, United States Code,
the Secretary may accept, retain, and use funds contributed by
any person, government entity, or organization for purposes of
carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(2) Prize competition.--A private source of funding may not
participate in the competition for prizes awarded under this
section.

(d) [NOTE: Establishment.  Technical Review.--The Secretary shall
establish a technical review committee composed of non-Federal officers
to review entrant data submitted under this section to determine whether
the data meets the prize specifications described in subsection (b).

(e) Third Party Administration.--The Secretary may competitively
select a third party to administer awards under this section.
(f) Eligibility for Prizes.--To be eligible to be awarded a prize
under this section--
(1) in the case of a private entity, the entity shall be
incorporated in and maintain a primary place of business in the
United States; and
(2) in the case of an individual (whether participating as a
single individual or in a group), the individual shall be a
citizen or lawful permanent resident of the United States.

(g) Award Amounts.--Subject to the availability of funds to carry
out this section, the amount of--
(1) the 60-Watt Incandescent Replacement Lamp Prize
described in subsection (b)(1) shall be $10,000,000;
(2) the PAR Type 38 Halogen Replacement Lamp Prize described
in subsection (b)(2) shall be $5,000,000; and
(3) the Twenty-First Century Lamp Prize described in
subsection (b)(3) shall be $5,000,000.

(h) [NOTE: Deadline.  Federal Procurement of Solid-State-
Lights.--
(1) 60-watt incandescent replacement.--Subject to paragraph
(3), as soon as practicable after the successful award of the
60-Watt Incandescent Replacement Lamp Prize under subsection
(b)(1), the Secretary (in consultation with the Administrator of
General Services) shall develop governmentwide Federal purchase
guidelines with a goal of replacing the use of 60-watt
incandescent lamps in Federal Government buildings with a solid-
state-light package described in subsection (b)(1) by not later
than the date that is 5 years after the date the award is made.
(2) PAR 38 halogen replacement lamp replacement.--Subject to
paragraph (3), as soon as practicable after the successful award
of the PAR Type 38 Halogen Replacement Lamp Prize under
subsection (b)(2), the Secretary (in consultation with the
Administrator of General Services) shall develop governmentwide
Federal purchase guidelines with the goal of replacing the use
of PAR 38 halogen lamps in Federal Government buildings with a
solid-state-light package described in subsection (b)(2) by not
later than the date that is 5 years after the date the award is
made.
(3) Waivers.--
(A) In general.--The Secretary or the Administrator
of General Services may waive the application of
paragraph (1) or (2) if the Secretary or Administrator
determines

[[Page 1703]]
121 STAT. 1703

that the return on investment from the purchase of a
solid-state-light package described in paragraph (1) or
(2) of subsection (b), respectively, is cost
prohibitive.
(B) Report of waiver.--If the Secretary or
Administrator waives the application of paragraph (1) or
(2), the Secretary or Administrator, respectively, shall
submit to Congress an annual report that describes the
waiver and provides a detailed justification for the
waiver.

(i) Report.--Not later than 2 years after the date of enactment of
this Act, and annually thereafter, the Administrator of General Services
shall submit to the Energy Information Agency a report describing the
quantity, type, and cost of each lighting product purchased by the
Federal Government.
(j) Bright Tomorrow Lighting Award Fund.--
(1) Establishment.--There is established in the United
States Treasury a Bright Tomorrow Lighting permanent fund
without fiscal year limitation to award prizes under paragraphs
(1), (2), and (3) of subsection (b).
(2) Sources of funding.--The fund established under
paragraph (1) shall accept--
(A) fiscal year appropriations; and
(B) private contributions authorized under
subsection (c).

(k) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 656. [NOTE: 42 USC 17244.  RENEWABLE ENERGY INNOVATION
MANUFACTURING PARTNERSHIP.

(a) Establishment.--The Secretary shall carry out a program, to be
known as the Renewable Energy Innovation Manufacturing Partnership
Program (referred to in this section as the ``Program''), to make
assistance awards to eligible entities for use in carrying out research,
development, and demonstration relating to the manufacturing of
renewable energy technologies.
(b) Solicitation.--To carry out the Program, the Secretary shall
annually conduct a competitive solicitation for assistance awards for an
eligible project described in subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of, advanced
manufacturing processes, materials, and infrastructure;
(2) to increase the domestic production of renewable energy
technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable energy goals
through advanced manufacturing partnerships.

(d) Eligible Entities.--An entity shall be eligible to receive an
assistance award under the Program to carry out an eligible project
described in subsection (e) if the entity is composed of--
(1) 1 or more public or private nonprofit institutions or
national laboratories engaged in research, development,
demonstration, or technology transfer, that would participate
substantially in the project; and
(2) 1 or more private entities engaged in the manufacturing
or development of renewable energy system components (including
solar energy, wind energy, biomass, geothermal energy, energy
storage, or fuel cells).

[[Page 1704]]
121 STAT. 1704

(e) Eligible Projects.--An eligible entity may use an assistance
award provided under this section to carry out a project relating to--
(1) the conduct of studies of market opportunities for
component manufacturing of renewable energy systems;
(2) the conduct of multiyear applied research, development,
demonstration, and deployment projects for advanced
manufacturing processes, materials, and infrastructure for
renewable energy systems; and
(3) other similar ventures, as approved by the Secretary,
that promote advanced manufacturing of renewable technologies.

(f) Criteria and Guidelines.--The Secretary shall establish criteria
and guidelines for the submission, evaluation, and funding of proposed
projects under the Program.
(g) [NOTE: Applicability.  Cost Sharing.--Section 988 of the
Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a project
carried out under this section.

(h) Disclosure.--The Secretary may, for a period of up to 5 years
after an award is granted under this section, exempt from mandatory
disclosure under section 552 of title 5, United States Code (popularly
known as the Freedom of Information Act) information that the Secretary
determines would be a privileged or confidential trade secret or
commercial or financial information under subsection (b)(4) of such
section if the information had been obtained from a non-Government
party.
(i) Sense of the Congress.--It is the sense of the Congress that the
Secretary should ensure that small businesses engaged in renewable
manufacturing be given priority consideration for the assistance awards
provided under this section.
(j) Authorization of Appropriations.--There is authorized to be
appropriated out of funds already authorized to carry out this section
$25,000,000 for each of fiscal years 2008 through 2013, to remain
available until expended.

TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle [NOTE: Department of Energy Carbon Capture and Sequestration
Research, Development, and Demonstration Act of 2007. 42 USC 17001
note.  A--Carbon Capture and Sequestration Research, Development, and
Demonstration

SEC. 701. SHORT TITLE.

This subtitle may be cited as the ``Department of Energy Carbon
Capture and Sequestration Research, Development, and Demonstration Act
of 2007''.

SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND
DEMONSTRATION PROGRAM.

(a) Amendment.--Section 963 of the Energy Policy Act of 2005 (42
U.S.C. 16293) is amended--
(1) in the section heading, by striking ``research and
development'' and inserting ``and sequestration research,
development, and demonstration'';

[[Page 1705]]
121 STAT. 1705

(2) in subsection (a)--
(A) by striking ``research and development'' and
inserting ``and sequestration research, development, and
demonstration''; and
(B) by striking ``capture technologies on
combustion-based systems'' and inserting ``capture and
sequestration technologies related to industrial sources
of carbon dioxide'';
(3) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) to expedite and carry out large-scale testing of
carbon sequestration systems in a range of geologic formations
that will provide information on the cost and feasibility of
deployment of sequestration technologies.''; and
(4) by striking subsection (c) and inserting the following:

``(c) Programmatic Activities.--
``(1) Fundamental science and engineering research and
development and demonstration supporting carbon capture and
sequestration technologies and carbon use activities.--
``(A) In general.--The Secretary shall carry out
fundamental science and engineering research (including
laboratory-scale experiments, numeric modeling, and
simulations) to develop and document the performance of
new approaches to capture and sequester, or use carbon
dioxide to lead to an overall reduction of carbon
dioxide emissions.
``(B) Program integration.--The Secretary shall
ensure that fundamental research carried out under this
paragraph is appropriately applied to energy technology
development activities, the field testing of carbon
sequestration, and carbon use activities, including--
``(i) development of new or advanced
technologies for the capture and sequestration of
carbon dioxide;
``(ii) development of new or advanced
technologies that reduce the cost and increase the
efficacy of advanced compression of carbon dioxide
required for the sequestration of carbon dioxide;
``(iii) modeling and simulation of geologic
sequestration field demonstrations;
``(iv) quantitative assessment of risks
relating to specific field sites for testing of
sequestration technologies;
``(v) research and development of new and
advanced technologies for carbon use, including
recycling and reuse of carbon dioxide; and
``(vi) research and development of new and
advanced technologies for the separation of oxygen
from air.
``(2) Field validation testing activities.--
``(A) In general.--The Secretary shall promote, to
the maximum extent practicable, regional carbon
sequestration partnerships to conduct geologic
sequestration tests involving carbon dioxide injection
and monitoring, mitigation, and verification operations
in a variety of candidate geologic settings, including--

[[Page 1706]]
121 STAT. 1706

``(i) operating oil and gas fields;
``(ii) depleted oil and gas fields;
``(iii) unmineable coal seams;
``(iv) deep saline formations;
``(v) deep geologic systems that may be used
as engineered reservoirs to extract economical
quantities of heat from geothermal resources of
low permeability or porosity; and
``(vi) deep geologic systems containing basalt
formations.
``(B) Objectives.--The objectives of tests conducted
under this paragraph shall be--
``(i) to develop and validate geophysical
tools, analysis, and modeling to monitor, predict,
and verify carbon dioxide containment;
``(ii) to validate modeling of geologic
formations;
``(iii) to refine sequestration capacity
estimated for particular geologic formations;
``(iv) to determine the fate of carbon dioxide
concurrent with and following injection into
geologic formations;
``(v) to develop and implement best practices
for operations relating to, and monitoring of,
carbon dioxide injection and sequestration in
geologic formations;
``(vi) to assess and ensure the safety of
operations related to geologic sequestration of
carbon dioxide;
``(vii) to allow the Secretary to promulgate
policies, procedures, requirements, and guidance
to ensure that the objectives of this subparagraph
are met in large-scale testing and deployment
activities for carbon capture and sequestration
that are funded by the Department of Energy; and
``(viii) to provide information to States, the
Environmental Protection Agency, and other
appropriate entities to support development of a
regulatory framework for commercial-scale
sequestration operations that ensure the
protection of human health and the environment.
``(3) Large-scale carbon dioxide sequestration testing.--
``(A) In general.--The Secretary shall conduct not
less than 7 initial large-scale sequestration tests, not
including the FutureGen project, for geologic
containment of carbon dioxide to collect and validate
information on the cost and feasibility of commercial
deployment of technologies for geologic containment of
carbon dioxide. These 7 tests may include any Regional
Partnership projects awarded as of the date of enactment
of the Department of Energy Carbon Capture and
Sequestration Research, Development, and Demonstration
Act of 2007.
``(B) Diversity of formations to be studied.--In
selecting formations for study under this paragraph, the
Secretary shall consider a variety of geologic
formations across the United States, and require
characterization and modeling of candidate formations,
as determined by the Secretary.

[[Page 1707]]
121 STAT. 1707

``(C) Source of carbon dioxide for large-scale
sequestration tests.--In the process of any acquisition
of carbon dioxide for sequestration tests under
subparagraph (A), the Secretary shall give preference to
sources of carbon dioxide from industrial sources. To
the extent feasible, the Secretary shall prefer tests
that would facilitate the creation of an integrated
system of capture, transportation and sequestration of
carbon dioxide. The preference provided for under this
subparagraph shall not delay the implementation of the
large-scale sequestration tests under this paragraph.
``(D) Definition.--For purposes of this paragraph,
the term `large-scale' means the injection of more than
1,000,000 tons of carbon dioxide from industrial sources
annually or a scale that demonstrates the ability to
inject and sequester several million metric tons of
industrial source carbon dioxide for a large number of
years.
``(4) Preference in project selection from meritorious
proposals.--In making competitive awards under this subsection,
subject to the requirements of section 989, the Secretary
shall--
``(A) give preference to proposals from partnerships
among industrial, academic, and government entities; and
``(B) require recipients to provide assurances that
all laborers and mechanics employed by contractors and
subcontractors in the construction, repair, or
alteration of new or existing facilities performed in
order to carry out a demonstration or commercial
application activity authorized under this subsection
shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code, and the Secretary of Labor shall, with respect to
the labor standards in this paragraph, have the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C.
Appendix) and section 3145 of title 40, United States
Code.
``(5) Cost sharing.--Activities under this subsection shall
be considered research and development activities that are
subject to the cost sharing requirements of section 988(b).
``(6) Program review and report.--During fiscal year 2011,
the Secretary shall--
``(A) conduct a review of programmatic activities
carried out under this subsection; and
``(B) make recommendations with respect to
continuation of the activities.

``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $240,000,000 for fiscal year 2008;
``(2) $240,000,000 for fiscal year 2009;
``(3) $240,000,000 for fiscal year 2010;
``(4) $240,000,000 for fiscal year 2011; and
``(5) $240,000,000 for fiscal year 2012.''.

[[Page 1708]]
121 STAT. 1708

(b) Table of Contents Amendment.--The item relating to section 963
in the table of contents for the Energy Policy Act of 2005 is amended to
read as follows:

``Sec. 963. Carbon capture and sequestration research, development, and
demonstration program.''.

SEC. 703. [NOTE: 42 USC 17251.  CARBON CAPTURE.

(a) Program Establishment.--
(1) In general.--The Secretary shall carry out a program to
demonstrate technologies for the large-scale capture of carbon
dioxide from industrial sources. In making awards under this
program, the Secretary shall select, as appropriate, a diversity
of capture technologies to address the need to capture carbon
dioxide from a range of industrial sources.
(2) Scope of award.--Awards under this section shall be only
for the portion of the project that--
(A) carries out the large-scale capture (including
purification and compression) of carbon dioxide from
industrial sources;
(B) provides for the transportation and injection of
carbon dioxide; and
(C) incorporates a comprehensive measurement,
monitoring, and validation program.
(3) Preferences for award.--To ensure reduced carbon dioxide
emissions, the Secretary shall take necessary actions to provide
for the integration of the program under this paragraph with the
large-scale carbon dioxide sequestration tests described in
section 963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C.
16293(c)(3)), as added by section 702 of this subtitle. These
actions should not delay implementation of these tests. The
Secretary shall give priority consideration to projects with the
following characteristics:
(A) Capacity.--Projects that will capture a high
percentage of the carbon dioxide in the treated stream
and large volumes of carbon dioxide as determined by the
Secretary.
(B) Sequestration.--Projects that capture carbon
dioxide from industrial sources that are near suitable
geological reservoirs and could continue sequestration
including--
(i) a field testing validation activity under
section 963 of the Energy Policy Act of 2005 (42
U.S.C. 16293), as amended by this Act; or
(ii) other geologic sequestration projects
approved by the Secretary.
(4) Requirement.--For projects that generate carbon dioxide
that is to be sequestered, the carbon dioxide stream shall be of
a sufficient purity level to allow for safe transport and
sequestration.
(5) [NOTE: Applicability.  Cost-sharing.--The cost-
sharing requirements of section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) for research and development projects
shall apply to this section.

(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $200,000,000 per
year for fiscal years 2009 through 2013.

[[Page 1709]]
121 STAT. 1709

SEC. 704. [NOTE: 42 USC 17252.  REVIEW OF LARGE-SCALE PROGRAMS.

The [NOTE: Contracts.  Secretary shall enter into an arrangement
with the National Academy of Sciences for an independent review and
oversight, beginning in 2011, of the programs under section 963(c)(3) of
the Energy Policy Act of 2005 (42 U.S.C. 16293(c)(3)), as added by
section 702 of this subtitle, and under section 703 of this subtitle, to
ensure that the benefits of such programs are
maximized. [NOTE: Deadline. Reports.  Not later than January 1, 2012,
the Secretary shall transmit to the Congress a report on the results of
such review and oversight.

SEC. 705. [NOTE: 42 USC 17253.  GEOLOGIC SEQUESTRATION TRAINING AND
RESEARCH.

(a) Study.--
(1) [NOTE: Contracts.  In general.--The Secretary shall
enter into an arrangement with the National Academy of Sciences
to undertake a study that--
(A) defines an interdisciplinary program in geology,
engineering, hydrology, environmental science, and
related disciplines that will support the Nation's
capability to capture and sequester carbon dioxide from
anthropogenic sources;
(B) addresses undergraduate and graduate education,
especially to help develop graduate level programs of
research and instruction that lead to advanced degrees
with emphasis on geologic sequestration science;
(C) develops guidelines for proposals from colleges
and universities with substantial capabilities in the
required disciplines that seek to implement geologic
sequestration science programs that advance the Nation's
capacity to address carbon management through geologic
sequestration science; and
(D) outlines a budget and recommendations for how
much funding will be necessary to establish and carry
out the grant program under subsection (b).
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to the
Congress a copy of the results of the study provided by the
National Academy of Sciences under paragraph (1).
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection $1,000,000 for fiscal year 2008.

(b) Grant Program.--
(1) Establishment.--The Secretary shall establish a
competitive grant program through which colleges and
universities may apply for and receive 4-year grants for--
(A) salary and startup costs for newly designated
faculty positions in an integrated geologic carbon
sequestration science program; and
(B) internships for graduate students in geologic
sequestration science.
(2) Renewal.--Grants under this subsection shall be
renewable for up to 2 additional 3-year terms, based on
performance criteria, established by the National Academy of
Sciences study conducted under subsection (a), that include the
number of graduates of such programs.
(3) Interface with regional geologic carbon sequestration
partnerships.--To the greatest extent possible, geologic carbon
sequestration science programs supported under

[[Page 1710]]
121 STAT. 1710

this subsection shall interface with the research of the
Regional Carbon Sequestration Partnerships operated by the
Department to provide internships and practical training in
carbon capture and geologic sequestration.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection such sums as may be necessary.

SEC. 706. [NOTE: 42 USC 17254.  RELATION TO SAFE DRINKING WATER ACT.

The injection and geologic sequestration of carbon dioxide pursuant
to this subtitle and the amendments made by this subtitle shall be
subject to the requirements of the Safe Drinking Water Act (42 U.S.C.
300f et seq.), including the provisions of part C of such Act (42 U.S.C.
300h et seq.; relating to protection of underground sources of drinking
water). Nothing in this subtitle and the amendments made by this
subtitle imposes or authorizes the promulgation of any requirement that
is inconsistent or in conflict with the requirements of the Safe
Drinking Water Act (42 U.S.C. 300f et seq.) or regulations thereunder.

SEC. 707. [NOTE: 42 USC 17255.  SAFETY RESEARCH.

(a) Program.--The Administrator of the Environmental Protection
Agency shall conduct a research program to address public health,
safety, and environmental impacts that may be associated with capture,
injection, and sequestration of greenhouse gases in geologic reservoirs.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for carrying out this section $5,000,000 for each fiscal
year.

SEC. 708. [NOTE: 42 USC 17256.  UNIVERSITY BASED RESEARCH AND
DEVELOPMENT GRANT PROGRAM.

(a) Establishment.--The Secretary, in consultation with other
appropriate agencies, shall establish a university based research and
development program to study carbon capture and sequestration using the
various types of coal.
(b) Rural and Agricultural Institutions.--The Secretary shall give
special consideration to rural or agricultural based institutions in
areas that have regional sources of coal and that offer
interdisciplinary programs in the area of environmental science to study
carbon capture and sequestration.
(c) Authorization of Appropriations.--There are to be authorized to
be appropriated $10,000,000 to carry out this section.

Subtitle B--Carbon Capture and Sequestration Assessment and Framework

SEC. 711. [NOTE: 42 USC 17271.  CARBON DIOXIDE SEQUESTRATION CAPACITY
ASSESSMENT.

(a) Definitions.--In this section--
(1) Assessment.--The term ``assessment'' means the national
assessment of onshore capacity for carbon dioxide completed
under subsection (f).
(2) Capacity.--The term ``capacity'' means the portion of a
sequestration formation that can retain carbon dioxide in
accordance with the requirements (including physical,

[[Page 1711]]
121 STAT. 1711

geological, and economic requirements) established under the
methodology developed under subsection (b).
(3) Engineered hazard.--The term ``engineered hazard''
includes the location and completion history of any well that
could affect potential sequestration.
(4) Risk.--The term ``risk'' includes any risk posed by
geomechanical, geochemical, hydrogeological, structural, and
engineered hazards.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(6) Sequestration formation.--The term ``sequestration
formation'' means a deep saline formation, unmineable coal seam,
or oil or gas reservoir that is capable of accommodating a
volume of industrial carbon dioxide.

(b) Methodology.--Not [NOTE: Deadline.  later than 1 year after
the date of enactment of this Act, the Secretary shall develop a
methodology for conducting an assessment under subsection (f), taking
into consideration--
(1) the geographical extent of all potential sequestration
formations in all States;
(2) the capacity of the potential sequestration formations;
(3) the injectivity of the potential sequestration
formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and sequestration of industrial carbon
dioxide in potential sequestration formations;
(5) the risk associated with the potential sequestration
formations; and
(6) the work done to develop the Carbon Sequestration Atlas
of the United States and Canada that was completed by the
Department.

(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall consult with
the Secretary of Energy and the Administrator of the
Environmental Protection Agency on issues of data
sharing, format, development of the methodology, and
content of the assessment required under this section to
ensure the maximum usefulness and success of the
assessment.
(B) Cooperation.--The Secretary of Energy and the
Administrator shall cooperate with the Secretary to
ensure, to the maximum extent practicable, the
usefulness and success of the assessment.
(2) State coordination.--The Secretary shall consult with
State geological surveys and other relevant entities to ensure,
to the maximum extent practicable, the usefulness and success of
the assessment.

(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from the
public and the heads of affected Federal and State agencies;
(2) [NOTE: Establishment.  establish a panel of
individuals with expertise in the matters described in
paragraphs (1) through (5) of subsection (b) composed, as
appropriate, of representatives of Federal agencies,
institutions of higher education, nongovernmental organizations,
State organizations, industry, and international

[[Page 1712]]
121 STAT. 1712

geoscience organizations to review the methodology and comments
received under paragraph (1); and
(3) [NOTE: Federal Register, publication.  on completion
of the review under paragraph (2), publish in the Federal
Register the revised final methodology.

(e) Periodic Updates.--The methodology developed under this section
shall be updated periodically (including at least once every 5 years) to
incorporate new data as the data becomes available.
(f) National Assessment.--
(1) In general.--Not [NOTE: Deadline.  later than 2 years
after the date of publication of the methodology under
subsection (d)(1), the Secretary, in consultation with the
Secretary of Energy and State geological surveys, shall complete
a national assessment of capacity for carbon dioxide in
accordance with the methodology.
(2) Geological verification.--As part of the assessment
under this subsection, the Secretary shall carry out a drilling
program to supplement the geological data relevant to
determining sequestration capacity of carbon dioxide in
geological sequestration formations, including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As part of
the drilling program under paragraph (2), the Secretary shall
enter, as appropriate, into partnerships with other entities to
collect and integrate data from other drilling programs relevant
to the sequestration of carbon dioxide in geological formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the assessment,
the Secretary of Energy and the Secretary of the
Interior shall incorporate the results of the assessment
using--
(i) the NatCarb database, to the maximum
extent practicable; or
(ii) a new database developed by the Secretary
of Energy, as the Secretary of Energy determines
to be necessary.
(B) Ranking.--The database shall include the data
necessary to rank potential sequestration sites for
capacity and risk, across the United States, within each
State, by formation, and within each basin.
(5) Report.--Not later than 180 days after the date on which
the assessment is completed, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Natural Resources of the House of Representatives a
report describing the findings under the assessment.
(6) Periodic updates.--The national assessment developed
under this section shall be updated periodically (including at
least once every 5 years) to support public and private sector
decisionmaking.

(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $30,000,000 for the period of
fiscal years 2008 through 2012.

[[Page 1713]]
121 STAT. 1713

SEC. 712. [NOTE: 42 USC 17272.  ASSESSMENT OF CARBON SEQUESTRATION
AND METHANE AND NITROUS OXIDE EMISSIONS FROM ECOSYSTEMS.

(a) Definitions.--In this section:
(1) Adaptation strategy.--The term ``adaptation strategy''
means a land use and management strategy that can be used--
(A) to increase the sequestration capabilities of
covered greenhouse gases of any ecosystem; or
(B) to reduce the emissions of covered greenhouse
gases from any ecosystem.
(2) Assessment.--The term ``assessment'' means the national
assessment authorized under subsection (b).
(3) Covered greenhouse gas.--The term ``covered greenhouse
gas'' means carbon dioxide, nitrous oxide, and methane gas.
(4) Ecosystem.--The term ``ecosystem'' means any
terrestrial, freshwater aquatic, or coastal ecosystem, including
an estuary.
(5) Native plant species.--The term ``native plant species''
means any noninvasive, naturally occurring plant species within
an ecosystem.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.

(b) Authorization of Assessment.--Not [NOTE: Deadline.  later
than 2 years after the date on which the final methodology is published
under subsection (f)(3)(D), the Secretary shall complete a national
assessment of--
(1) the quantity of carbon stored in and released from
ecosystems, including from man-caused and natural fires; and
(2) the annual flux of covered greenhouse gases in and out
of ecosystems.

(c) Components.--In conducting the assessment under subsection (b),
the Secretary shall--
(1) determine the processes that control the flux of covered
greenhouse gases in and out of each ecosystem;
(2) estimate the potential for increasing carbon
sequestration in natural and managed ecosystems through
management activities or restoration activities in each
ecosystem;
(3) develop near-term and long-term adaptation strategies or
mitigation strategies that can be employed--
(A) to enhance the sequestration of carbon in each
ecosystem;
(B) to reduce emissions of covered greenhouse gases
from ecosystems; and
(C) to adapt to climate change; and
(4) estimate the annual carbon sequestration capacity of
ecosystems under a range of policies in support of management
activities to optimize sequestration.

(d) Use of Native Plant Species.--In developing restoration
activities under subsection (c)(2) and management strategies and
adaptation strategies under subsection (c)(3), the Secretary shall
emphasize the use of native plant species (including mixtures of many
native plant species) for sequestering covered greenhouse gas in each
ecosystem.
(e) Consultation.--
(1) In general.--In conducting the assessment under
subsection (b) and developing the methodology under subsection
(f), the Secretary shall consult with--

[[Page 1714]]
121 STAT. 1714

(A) the Secretary of Energy;
(B) the Secretary of Agriculture;
(C) the Administrator of the Environmental
Protection Agency;
(D) the Secretary of Commerce, acting through the
Under Secretary for Oceans and Atmosphere; and
(E) the heads of other relevant agencies.
(2) Ocean and coastal ecosystems.--In carrying out this
section with respect to ocean and coastal ecosystems (including
estuaries), the Secretary shall work jointly with the Secretary
of Commerce, acting through the Under Secretary for Oceans and
Atmosphere.

(f) Methodology.--
(1) In general.--Not [NOTE: Deadline.  later than 1 year
after the date of enactment of this Act, the Secretary shall
develop a methodology for conducting the assessment.
(2) Requirements.--The methodology developed under paragraph
(1)--
(A) shall--
(i) determine the method for measuring,
monitoring, and quantifying covered greenhouse gas
emissions and reductions;
(ii) estimate the total capacity of each
ecosystem to sequester carbon; and
(iii) estimate the ability of each ecosystem
to reduce emissions of covered greenhouse gases
through management practices; and
(B) may employ economic and other systems models,
analyses, and estimates, to be developed in consultation
with each of the individuals described in subsection
(e).
(3) External review and publication.--On completion of a
proposed methodology, the Secretary shall--
(A) publish the proposed methodology;
(B) [NOTE: Deadline.  at least 60 days before the
date on which the final methodology is published,
solicit comments from--
(i) the public; and
(ii) heads of affected Federal and State
agencies;
(C) [NOTE: Establishment.  establish a panel to
review the proposed methodology published under
subparagraph (A) and any comments received under
subparagraph (B), to be composed of members--
(i) with expertise in the matters described in
subsections (c) and (d); and
(ii) that are, as appropriate, representatives
of Federal agencies, institutions of higher
education, nongovernmental organizations, State
organizations, industry, and international
organizations; and
(D) on completion of the review under subparagraph
(C), publish [NOTE: Federal Register, publication.
in the Federal Register the revised final methodology.

(g) Estimate; Review.--The Secretary shall--
(1) based on the assessment, prescribe the data,
information, and analysis needed to establish a scientifically
sound estimate of the carbon sequestration capacity of relevant
ecosystems; and
(2) [NOTE: Deadline. Reports.  not later than 180 days
after the date on which the assessment is completed, submit to
the heads of applicable

[[Page 1715]]
121 STAT. 1715

Federal agencies and the appropriate committees of Congress a
report that describes the results of the assessment.

(h) Data and Report Availability.--On [NOTE: Public
information. Website.  completion of the assessment, the Secretary
shall incorporate the results of the assessment into a web-accessible
database for public use.

(i) Authorization.--There is authorized to be appropriated to carry
out this section $20,000,000 for the period of fiscal years 2008 through
2012.

SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.

Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) is
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:

``(d) Records and Inventory.--The Secretary of the Interior, acting
through the Bureau of Land Management, shall maintain records on, and an
inventory of, the quantity of carbon dioxide stored within Federal
mineral leaseholds.''.

SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON PUBLIC LAND.

(a) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of the Interior shall submit to the Committee on
Natural Resources of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate a report on a recommended
framework for managing geological carbon sequestration activities on
public land.
(b) Contents.--The report required by subsection (a) shall include
the following:
(1) Recommended criteria for identifying candidate
geological sequestration sites in each of the following types of
geological settings:
(A) Operating oil and gas fields.
(B) Depleted oil and gas fields.
(C) Unmineable coal seams.
(D) Deep saline formations.
(E) Deep geological systems that may be used as
engineered reservoirs to extract economical quantities
of heat from geothermal resources of low permeability or
porosity.
(F) Deep geological systems containing basalt
formations.
(G) Coalbeds being used for methane recovery.
(2) A proposed regulatory framework for the leasing of
public land or an interest in public land for the long-term
geological sequestration of carbon dioxide, which includes an
assessment of options to ensure that the United States receives
fair market value for the use of public land or an interest in
public land for geological sequestration.
(3) A proposed procedure for ensuring that any geological
carbon sequestration activities on public land--
(A) provide for public review and comment from all
interested persons; and
(B) protect the quality of natural and cultural
resources of the public land overlaying a geological
sequestration site.
(4) A description of the status of Federal leasehold or
Federal mineral estate liability issues related to the
geological subsurface trespass of or caused by carbon dioxide
stored in

[[Page 1716]]
121 STAT. 1716

public land, including any relevant experience from enhanced oil
recovery using carbon dioxide on public land.
(5) Recommendations for additional legislation that may be
required to ensure that public land management and leasing laws
are adequate to accommodate the long-term geological
sequestration of carbon dioxide.
(6) An identification of the legal and regulatory issues
specific to carbon dioxide sequestration on land in cases in
which title to mineral resources is held by the United States
but title to the surface estate is not held by the United
States.
(7)(A) An identification of the issues specific to the
issuance of pipeline rights-of-way on public land under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) for
natural or anthropogenic carbon dioxide.
(B) Recommendations for additional legislation that may be
required to clarify the appropriate framework for issuing
rights-of-way for carbon dioxide pipelines on public land.

(c) Consultation With Other Agencies.--In preparing the report under
this section, the Secretary of the Interior shall coordinate with--
(1) the Administrator of the Environmental Protection
Agency;
(2) the Secretary of Energy; and
(3) the heads of other appropriate agencies.

(d) Compliance With Safe Drinking Water Act.--The Secretary shall
ensure that all recommendations developed under this section are in
compliance with all Federal environmental laws, including the Safe
Drinking Water Act (42 U.S.C. 300f et seq.) and regulations under that
Act.

TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

Subtitle A--Management Improvements

SEC. 801. [NOTE: 42 USC 17281.  NATIONAL MEDIA CAMPAIGN.

(a) In General.--The Secretary, acting through the Assistant
Secretary for Energy Efficiency and Renewable Energy (referred to in
this section as the ``Secretary''), shall develop and conduct a national
media campaign--
(1) to increase energy efficiency throughout the economy of
the United States during the 10-year period beginning on the
date of enactment of this Act;
(2) to promote the national security benefits associated
with increased energy efficiency; and
(3) to decrease oil consumption in the United States during
the 10-year period beginning on the date of enactment of this
Act.

(b) Contract With Entity.--The Secretary shall carry out subsection
(a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution of
monthly television, radio, and newspaper public service
announcements; or

[[Page 1717]]
121 STAT. 1717

(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service announcements.

(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for--
(A) advertising costs, including--
(i) the purchase of media time and space;
(ii) creative and talent costs;
(iii) testing and evaluation of advertising;
and
(iv) evaluation of the effectiveness of the
media campaign; and
(B) administrative costs, including operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds made
available under subsection (e) for each fiscal year for the
advertising functions specified under paragraph (1)(A).

(d) Reports.--The Secretary shall annually submit to Congress a
report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of
energy consumption, in both absolute and per capita
terms; and
(B) an evaluation that enables consideration of
whether the media campaign contributed to reduction of
energy consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising time
and space and eliminate the potential for waste, fraud, and
abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on behalf
of the national media campaign.

(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $5,000,000 for each of fiscal years 2008
through 2012.
(2) Decreased oil consumption.--The Secretary shall use not
less than 50 percent of the amount that is made available under
this section for each fiscal year to develop and conduct a
national media campaign to decrease oil consumption in the
United States over the next decade.

SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.

Section 106 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720d)
is amended by adding at the end the following:
``(h) Administration.--
``(1) Personnel appointments.--

[[Page 1718]]
121 STAT. 1718

``(A) In general.--The Federal Coordinator may
appoint and terminate such personnel as the Federal
Coordinator determines to be appropriate.
``(B) Authority of federal coordinator.--Personnel
appointed by the Federal Coordinator under subparagraph
(A) shall be appointed without regard to the provisions
of title 5, United States Code, governing appointments
in the competitive service.
``(2) Compensation.--
``(A) In general.--Subject to subparagraph (B),
personnel appointed by the Federal Coordinator under
paragraph (1)(A) shall be paid without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of title 5, United States Code (relating to
classification and General Schedule pay rates).
``(B) Maximum level of compensation.--The rate of
pay for personnel appointed by the Federal Coordinator
under paragraph (1)(A) shall not exceed the maximum
level of rate payable for level III of the Executive
Schedule (5 U.S.C. 5314).
``(C) [NOTE: Applicability.  Allowances.--Section
5941 of title 5, United States Code, shall apply to
personnel appointed by the Federal Coordinator under
paragraph (1)(A).
``(3) Temporary services.--
``(A) In general.--The Federal Coordinator may
procure temporary and intermittent services in
accordance with section 3109(b) of title 5, United
States Code.
``(B) Maximum level of compensation.--The level of
compensation of an individual employed on a temporary or
intermittent basis under subparagraph (A) shall not
exceed the maximum level of rate payable for level III
of the Executive Schedule (5 U.S.C. 5314).
``(4) Fees, charges, and commissions.--
``(A) In general.--With respect to the duties of the
Federal Coordinator, as described in this Act, the
Federal Coordinator shall have similar authority to
establish, change, and abolish reasonable filing and
service fees, charges, and commissions, require deposits
of payments, and provide refunds as provided to the
Secretary of the Interior in section 304 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1734).
``(B) Authority of secretary of the interior.--
Subparagraph (A) shall not affect the authority of the
Secretary of the Interior to establish, change, and
abolish reasonable filing and service fees, charges, and
commissions, require deposits of payments, and provide
refunds under section 304 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734).
``(C) Use of funds.--The Federal Coordinator is
authorized to use, without further appropriation,
amounts collected under subparagraph (A) to carry out
this section.''.

SEC. 803. [NOTE: 42 USC 17282.  RENEWABLE ENERGY DEPLOYMENT.

(a) Definitions.--In this section:
(1) Alaska small hydroelectric power.--The term ``Alaska
small hydroelectric power'' means power that--
(A) is generated--

[[Page 1719]]
121 STAT. 1719

(i) in the State of Alaska;
(ii) without the use of a dam or impoundment
of water; and
(iii) through the use of--
(I) a lake tap (but not a perched
alpine lake); or
(II) a run-of-river screened at the
point of diversion; and
(B) has a nameplate capacity rating of a wattage
that is not more than 15 megawatts.
(2) Eligible applicant.--The term ``eligible applicant''
means any--
(A) governmental entity;
(B) private utility;
(C) public utility;
(D) municipal utility;
(E) cooperative utility;
(F) Indian tribes; and
(G) Regional Corporation (as defined in section 3 of
the Alaska Native Claims Settlement Act (43 U.S.C.
1602)).
(3) Ocean energy.--
(A) Inclusions.--The term ``ocean energy'' includes
current, wave, and tidal energy.
(B) Exclusion.--The term ``ocean energy'' excludes
thermal energy.
(4) Renewable energy project.--The term ``renewable energy
project'' means a project--
(A) for the commercial generation of electricity;
and
(B) that generates electricity from--
(i) solar, wind, or geothermal energy or ocean
energy;
(ii) biomass (as defined in section 203(b) of
the Energy Policy Act of 2005 (42 U.S.C.
15852(b)));
(iii) landfill gas; or
(iv) Alaska small hydroelectric power.

(b) Renewable Energy Construction Grants.--
(1) In general.--The Secretary shall use amounts
appropriated under this section to make grants for use in
carrying out renewable energy projects.
(2) Criteria.--Not [NOTE: Deadline.  later than 180 days
after the date of enactment of this Act, the Secretary shall set
forth criteria for use in awarding grants under this section.
(3) Application.--To receive a grant from the Secretary
under paragraph (1), an eligible applicant shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including a written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during construction,
alteration, or repair that is financed, in whole or in
part, by a grant under this section shall be paid wages
at rates not less than those prevailing on similar
construction in the locality, as determined by the
Secretary of Labor in accordance with sections 3141-
3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the

[[Page 1720]]
121 STAT. 1720

authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of
title 40, United States Code.
(4) Non-federal share.--Each eligible applicant that
receives a grant under this subsection shall contribute to the
total cost of the renewable energy project constructed by the
eligible applicant an amount not less than 50 percent of the
total cost of the project.

(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as are necessary to carry out this
section.

SEC. 804. [NOTE: 42 USC 17283.  COORDINATION OF PLANNED REFINERY
OUTAGES.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Energy Information Administration.
(2) Planned refinery outage.--
(A) In general.--The term ``planned refinery
outage'' means a removal, scheduled before the date on
which the removal occurs, of a refinery, or any unit of
a refinery, from service for maintenance, repair, or
modification.
(B) Exclusion.--The term ``planned refinery outage''
does not include any necessary and unplanned removal of
a refinery, or any unit of a refinery, from service as a
result of a component failure, safety hazard, emergency,
or action reasonably anticipated to be necessary to
prevent such events.
(3) Refined petroleum product.--The term ``refined petroleum
product'' means any gasoline, diesel fuel, fuel oil, lubricating
oil, liquid petroleum gas, or other petroleum distillate that is
produced through the refining or processing of crude oil or an
oil derived from tar sands, shale, or coal.
(4) Refinery.--The term ``refinery'' means a facility used
in the production of a refined petroleum product through
distillation, cracking, or any other process.

(b) Review and Analysis of Available Information.--The Administrator
shall, on an ongoing basis--
(1) review information on refinery outages that is available
from commercial reporting services;
(2) analyze that information to determine whether the
scheduling of a refinery outage may nationally or regionally
substantially affect the price or supply of any refined
petroleum product by--
(A) decreasing the production of the refined
petroleum product; and
(B) causing or contributing to a retail or wholesale
supply shortage or disruption;
(3) [NOTE: Deadlines. Reports.  not less frequently than
twice each year, submit to the Secretary a report describing the
results of the review and analysis under paragraphs (1) and (2);
and
(4) specifically alert the Secretary of any refinery outage
that the Administrator determines may nationally or regionally
substantially affect the price or supply of a refined petroleum
product.

(c) Action by Secretary.--On a determination by the Secretary, based
on a report or alert under paragraph (3) or (4) of subsection (b), that
a refinery outage may affect the price or supply

[[Page 1721]]
121 STAT. 1721

of a refined petroleum product, the Secretary shall make available to
refinery operators information on planned refinery outages to encourage
reductions of the quantity of refinery capacity that is out of service
at any time.
(d) Limitation.--Nothing in this section shall alter any existing
legal obligation or responsibility of a refinery operator, or create any
legal right of action, nor shall this section authorize the Secretary--
(1) to prohibit a refinery operator from conducting a
planned refinery outage; or
(2) to require a refinery operator to continue to operate a
refinery.

SEC. 805. [NOTE: 42 USC 17284.  ASSESSMENT OF RESOURCES.

(a) 5-Year Plan.--
(1) Establishment.--The Administrator of the Energy
Information Administration (referred to in this section as the
``Administrator'') shall establish a 5-year plan to enhance the
quality and scope of the data collection necessary to ensure the
scope, accuracy, and timeliness of the information needed for
efficient functioning of energy markets and related financial
operations.
(2) Requirement.--In establishing the plan under paragraph
(1), the Administrator shall pay particular attention to--
(A) data series terminated because of budget
constraints;
(B) data on demand response;
(C) timely data series of State-level information;
(D) improvements in the area of oil and gas data;
(E) improvements in data on solid byproducts from
coal-based energy-producing facilities; and
(F) the ability to meet applicable deadlines under
Federal law (including regulations) to provide data
required by Congress.

(b) Submission to Congress.--The Administrator shall submit to
Congress the plan established under subsection (a), including a
description of any improvements needed to enhance the ability of the
Administrator to collect and process energy information in a manner
consistent with the needs of energy markets.
(c) Guidelines.--
(1) In general.--The Administrator shall--
(A) establish guidelines to ensure the quality,
comparability, and scope of State energy data, including
data on energy production and consumption by product and
sector and renewable and alternative sources, required
to provide a comprehensive, accurate energy profile at
the State level;
(B) share company-level data collected at the State
level with each State involved, in a manner consistent
with the legal authorities, confidentiality protections,
and stated uses in effect at the time the data were
collected, subject to the condition that the State shall
agree to reasonable requirements for use of the data, as
the Administrator may require;
(C) assess any existing gaps in data obtained and
compiled by the Energy Information Administration; and

[[Page 1722]]
121 STAT. 1722

(D) evaluate the most cost-effective ways to address
any data quality and quantity issues in conjunction with
State officials.
(2) Consultation.--The Administrator shall consult with
State officials and the Federal Energy Regulatory Commission on
a regular basis in--
(A) establishing guidelines and determining the
scope of State-level data under paragraph (1); and
(B) exploring ways to address data needs and serve
data uses.

(d) Assessment of State Data Needs.--Not [NOTE: Deadline.  later
than 1 year after the date of enactment of this Act, the Administrator
shall submit to Congress an assessment of State-level data needs,
including a plan to address the needs.

(e) Authorization of Appropriations.--In addition to any other
amounts made available to the Administrator, there are authorized to be
appropriated to the Administrator to carry out this section--
(1) $10,000,000 for fiscal year 2008;
(2) $10,000,000 for fiscal year 2009;
(3) $10,000,000 for fiscal year 2010;
(4) $15,000,000 for fiscal year 2011;
(5) $20,000,000 for fiscal year 2012; and
(6) such sums as are necessary for subsequent fiscal years.

SEC. 806. [NOTE: 42 USC 17285.  SENSE OF CONGRESS RELATING TO THE USE
OF RENEWABLE RESOURCES TO GENERATE ENERGY.

(a) Findings.--Congress finds that--
(1) the United States has a quantity of renewable energy
resources that is sufficient to supply a significant portion of
the energy needs of the United States;
(2) the agricultural, forestry, and working land of the
United States can help ensure a sustainable domestic energy
system;
(3) accelerated development and use of renewable energy
technologies provide numerous benefits to the United States,
including improved national security, improved balance of
payments, healthier rural economies, improved environmental
quality, and abundant, reliable, and affordable energy for all
citizens of the United States;
(4) the production of transportation fuels from renewable
energy would help the United States meet rapidly growing
domestic and global energy demands, reduce the dependence of the
United States on energy imported from volatile regions of the
world that are politically unstable, stabilize the cost and
availability of energy, and safeguard the economy and security
of the United States;
(5) increased energy production from domestic renewable
resources would attract substantial new investments in energy
infrastructure, create economic growth, develop new jobs for the
citizens of the United States, and increase the income for farm,
ranch, and forestry jobs in the rural regions of the United
States;
(6) increased use of renewable energy is practical and can
be cost effective with the implementation of supportive policies
and proper incentives to stimulate markets and infrastructure;
and

[[Page 1723]]
121 STAT. 1723

(7) public policies aimed at enhancing renewable energy
production and accelerating technological improvements will
further reduce energy costs over time and increase market
demand.

(b) Sense of Congress.--It is the sense of Congress that it is the
goal of the United States that, not later than January 1, 2025, the
agricultural, forestry, and working land of the United States should--
(1) provide from renewable resources not less than 25
percent of the total energy consumed in the United States; and
(2) continue to produce safe, abundant, and affordable food,
feed, and fiber.

SEC. 807. [NOTE: Deadlines. 42 USC 17286. GEOTHERMAL ASSESSMENT,
EXPLORATION INFORMATION, AND PRIORITY ACTIVITIES.

(a) In General.--Not later than January 1, 2012, the Secretary of
the Interior, acting through the Director of the United States
Geological Survey, shall--
(1) complete a comprehensive nationwide geothermal resource
assessment that examines the full range of geothermal resources
in the United States; and
(2) [NOTE: Reports. submit to the the Committee on
Natural Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a report
describing the results of the assessment.

(b) Periodic Updates.--At least once every 10 years, the Secretary
shall update the national assessment required under this section to
support public and private sector decisionmaking.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of the Interior to carry out this
section--
(1) $15,000,000 for each of fiscal years 2008 through 2012;
and
(2) such sums as are necessary for each of fiscal years 2013
through 2022.

Subtitle B--Prohibitions on Market Manipulation and False Information

SEC. 811. [NOTE: 42 USC 17301.  PROHIBITION ON MARKET MANIPULATION.

It is unlawful for any person, directly or indirectly, to use or
employ, in connection with the purchase or sale of crude oil gasoline or
petroleum distillates at wholesale, any manipulative or deceptive device
or contrivance, in contravention of such rules and regulations as the
Federal Trade Commission may prescribe as necessary or appropriate in
the public interest or for the protection of United States citizens.

SEC. 812. [NOTE: 42 USC 17302.  PROHIBITION ON FALSE INFORMATION.

It is unlawful for any person to report information related to the
wholesale price of crude oil gasoline or petroleum distillates to a
Federal department or agency if--
(1) the person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and

[[Page 1724]]
121 STAT. 1724

(3) the person intended the false or misleading data to
affect data compiled by the department or agency for statistical
or analytical purposes with respect to the market for crude oil,
gasoline, or petroleum distillates.

SEC. 813. [NOTE: 42 USC 17303.  ENFORCEMENT BY THE FEDERAL TRADE
COMMISSION.

(a) Enforcement.--This subtitle shall be enforced by the Federal
Trade Commission in the same manner, by the same means, and with the
same jurisdiction as though all applicable terms of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a
part of this subtitle.
(b) Violation Is Treated as Unfair or Deceptive Act or Practice.--
The violation of any provision of this subtitle shall be treated as an
unfair or deceptive act or practice proscribed under a rule issued under
section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)).

SEC. 814. [NOTE: 42 USC 17304.  PENALTIES.

(a) Civil Penalty.--In addition to any penalty applicable under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.), any supplier that
violates section 811 or 812 shall be punishable by a civil penalty of
not more than $1,000,000.
(b) Method.--The penalties provided by subsection (a) shall be
obtained in the same manner as civil penalties imposed under section 5
of the Federal Trade Commission Act (15 U.S.C. 45).
(c) Multiple Offenses; Mitigating Factors.--In assessing the penalty
provided by subsection (a)--
(1) each day of a continuing violation shall be considered a
separate violation; and
(2) the court shall take into consideration, among other
factors--
(A) the seriousness of the violation; and
(B) the efforts of the person committing the
violation to remedy the harm caused by the violation in
a timely manner.

SEC. 815. [NOTE: 42 USC 17305.  EFFECT ON OTHER LAWS.

(a) Other Authority of the Commission.--Nothing in this subtitle
limits or affects the authority of the Federal Trade Commission to bring
an enforcement action or take any other measure under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) or any other provision of law.
(b) Antitrust Law.--Nothing in this subtitle shall be construed to
modify, impair, or supersede the operation of any of the antitrust laws.
For purposes of this subsection, the term ``antitrust laws'' shall have
the meaning given it in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12), except that it includes section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.
(c) State Law.--Nothing in this subtitle preempts any State law.

[[Page 1725]]
121 STAT. 1725

TITLE IX--INTERNATIONAL ENERGY PROGRAMS

SEC. 901. [NOTE: 42 USC 17321.  DEFINITIONS.

In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Energy and Commerce of the House of
Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Energy and Natural Resources, the Committee
on Environment and Public Works, and the Committee on
Commerce, Science, and Transportation of the Senate.
(2) Clean and efficient energy technology.--The term ``clean
and efficient energy technology'' means an energy supply or end-
use technology that, compared to a similar technology already in
widespread commercial use in a recipient country, will--
(A) reduce emissions of greenhouse gases; or
(B)(i) increase efficiency of energy production; or
(ii) decrease intensity of energy usage.
(3) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; or
(F) sulfur hexafluoride.

Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries

SEC. 911. [NOTE: 42 USC 17331.  UNITED STATES ASSISTANCE FOR
DEVELOPING COUNTRIES.

(a) Assistance Authorized.--The Administrator of the United States
Agency for International Development shall support policies and programs
in developing countries that promote clean and efficient energy
technologies--
(1) to produce the necessary market conditions for the
private sector delivery of energy and environmental management
services;
(2) to create an environment that is conducive to accepting
clean and efficient energy technologies that support the overall
purpose of reducing greenhouse gas emissions, including--
(A) improving policy, legal, and regulatory
frameworks;
(B) increasing institutional abilities to provide
energy and environmental management services; and
(C) increasing public awareness and participation in
the decision-making of delivering energy and
environmental management services; and

[[Page 1726]]
121 STAT. 1726

(3) to promote the use of American-made clean and efficient
energy technologies, products, and energy and environmental
management services.

(b) Report.--The Administrator of the United States Agency for
International Development shall submit to the appropriate congressional
committees an annual report on the implementation of this section for
each of the fiscal years 2008 through 2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Administrator of the
United States Agency for International Development $200,000,000 for each
of the fiscal years 2008 through 2012.

SEC. 912. [NOTE: 42 USC 17332.  UNITED STATES EXPORTS AND OUTREACH
PROGRAMS FOR INDIA, CHINA, AND OTHER COUNTRIES.

(a) Assistance Authorized.--The Secretary of Commerce shall direct
the United States and Foreign Commercial Service to expand or create a
corps of the Foreign Commercial Service officers to promote United
States exports in clean and efficient energy technologies and build the
capacity of government officials in India, China, and any other country
the Secretary of Commerce determines appropriate, to become more
familiar with the available technologies--
(1) by assigning or training Foreign Commercial Service
attaches, who have expertise in clean and efficient energy
technologies from the United States, to embark on business
development and outreach efforts to such countries; and
(2) by deploying the attaches described in paragraph (1) to
educate provincial, state, and local government officials in
such countries on the variety of United States-based
technologies in clean and efficient energy technologies for the
purposes of promoting United States exports and reducing global
greenhouse gas emissions.

(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years 2008 through
2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Secretary of Commerce
such sums as may be necessary for each of the fiscal years 2008 through
2012.

SEC. 913. [NOTE: 42 USC 17333.  UNITED STATES TRADE MISSIONS TO
ENCOURAGE PRIVATE SECTOR TRADE AND INVESTMENT.

(a) Assistance Authorized.--The Secretary of Commerce shall direct
the International Trade Administration to expand or create trade
missions to and from the United States to encourage private sector trade
and investment in clean and efficient energy technologies--
(1) by organizing and facilitating trade missions to foreign
countries and by matching United States private sector companies
with opportunities in foreign markets so that clean and
efficient energy technologies can help to combat increases in
global greenhouse gas emissions; and
(2) by creating reverse trade missions in which the
Department of Commerce facilitates the meeting of foreign
private and public sector organizations with private sector
companies in the United States for the purpose of showcasing
clean and

[[Page 1727]]
121 STAT. 1727

efficient energy technologies in use or in development that
could be exported to other countries.

(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years 2008 through
2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Secretary of Commerce
such sums as may be necessary for each of the fiscal years 2008 through
2012.

SEC. 914. [NOTE: 42 USC 17334.  ACTIONS BY OVERSEAS PRIVATE
INVESTMENT CORPORATION.

(a) Sense of Congress.--It is the sense of Congress that the
Overseas Private Investment Corporation should promote greater
investment in clean and efficient energy technologies by--
(1) proactively reaching out to United States companies that
are interested in investing in clean and efficient energy
technologies in countries that are significant contributors to
global greenhouse gas emissions;
(2) giving preferential treatment to the evaluation and
awarding of projects that involve the investment or utilization
of clean and efficient energy technologies; and
(3) providing greater flexibility in supporting projects
that involve the investment or utilization of clean and
efficient energy technologies, including financing, insurance,
and other assistance.

(b) Report.--The Overseas Private Investment Corporation shall
include in its annual report required under section 240A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2200a)--
(1) a description of the activities carried out to implement
this section; or
(2) if the Corporation did not carry out any activities to
implement this section, an explanation of the reasons therefor.

SEC. 915. [NOTE: 42 USC 17335.  ACTIONS BY UNITED STATES TRADE AND
DEVELOPMENT AGENCY.

(a) Assistance Authorized.--The Director of the Trade and
Development Agency shall establish or support policies that--
(1) proactively seek opportunities to fund projects that
involve the utilization of clean and efficient energy
technologies, including in trade capacity building and capital
investment projects;
(2) where appropriate, advance the utilization of clean and
efficient energy technologies, particularly to countries that
have the potential for significant reduction in greenhouse gas
emissions; and
(3) recruit and retain individuals with appropriate
expertise or experience in clean, renewable, and efficient
energy technologies to identify and evaluate opportunities for
projects that involve clean and efficient energy technologies
and services.

(b) Report.--The [NOTE: President.  President shall include in
the annual report on the activities of the Trade and Development Agency
required under section 661(d) of the Foreign Assistance Act of 1961 (22
U.S.C. 2421(d)) a description of the activities carried out to implement
this section.

[[Page 1728]]
121 STAT. 1728

SEC. 916. [NOTE: 42 USC 17336.  DEPLOYMENT OF INTERNATIONAL CLEAN AND
EFFICIENT ENERGY TECHNOLOGIES AND INVESTMENT IN GLOBAL
ENERGY MARKETS.

(a) [NOTE: President.  Task Force.--
(1) Establishment.--Not [NOTE: Deadline.  later than 90
days after the date of the enactment of this Act, the President
shall establish a Task Force on International Cooperation for
Clean and Efficient Energy Technologies (in this section
referred to as the ``Task Force'').
(2) Composition.--The Task Force shall be composed of
representatives, appointed by the head of the respective Federal
department or agency, of--
(A) the Council on Environmental Quality;
(B) the Department of Energy;
(C) the Department of Commerce;
(D) the Department of the Treasury;
(E) the Department of State;
(F) the Environmental Protection Agency;
(G) the United States Agency for International
Development;
(H) the Export-Import Bank of the United States;
(I) the Overseas Private Investment Corporation:
(J) the Trade and Development Agency;
(K) the Small Business Administration;
(L) the Office of the United States Trade
Representative; and
(M) other Federal departments and agencies, as
determined by the President.
(3) Chairperson.--The President shall designate a
Chairperson or Co-Chairpersons of the Task Force.
(4) Duties.--The Task Force--
(A) shall develop and assist in the implementation
of the strategy required under subsection (c); and
(B)(i) shall analyze technology, policy, and market
opportunities for the development, demonstration, and
deployment of clean and efficient energy technologies on
an international basis; and
(ii) shall examine relevant trade, tax, finance,
international, and other policy issues to assess which
policies, in the United States and in developing
countries, would help open markets and improve the
export of clean and efficient energy technologies from
the United States.
(5) Termination.--The Task Force, including any working
group established by the Task Force pursuant to subsection (b),
shall terminate 12 years after the date of the enactment of this
Act.

(b) Working Groups.--
(1) Establishment.--The Task Force--
(A) shall establish an Interagency Working Group on
the Export of Clean and Efficient Energy Technologies
(in this section referred to as the ``Interagency
Working Group''); and
(B) may establish other working groups as may be
necessary to carry out this section.
(2) Composition.--The Interagency Working Group shall be
composed of--

[[Page 1729]]
121 STAT. 1729

(A) the Secretary of Energy, the Secretary of
Commerce, and the Secretary of State, who shall serve as
Co-Chairpersons of the Interagency Working Group; and
(B) other members, as determined by the Chairperson
or Co-Chairpersons of the Task Force.
(3) Duties.--The Interagency Working Group shall coordinate
the resources and relevant programs of the Department of Energy,
the Department of Commerce, the Department of State, and other
relevant Federal departments and agencies to support the export
of clean and efficient energy technologies developed or
demonstrated in the United States to other countries and the
deployment of such clean and efficient energy technologies in
such other countries.
(4) Interagency center.--The Interagency Working Group--
(A) [NOTE: Establishment. shall establish an
Interagency Center on the Export of Clean and Efficient
Energy Technologies (in this section referred to as the
``Interagency Center'') to assist the Interagency
Working Group in carrying out its duties required under
paragraph (3); and
(B) shall locate the Interagency Center at a site
agreed upon by the Co-Chairpersons of the Interagency
Working Group, with the approval of the Chairperson or
Co-Chairpersons of the Task Force.

(c) Strategy.--
(1) In general.--Not [NOTE: Deadline.  later than 1 year
after the date of the enactment of this Act, the Task Force
shall develop and submit to the President and the appropriate
congressional committees a strategy to--
(A) support the development and implementation of
programs, policies, and initiatives in developing
countries to promote the adoption and deployment of
clean and efficient energy technologies, with an
emphasis on those developing countries that are expected
to experience the most significant growth in energy
production and use over the next 20 years;
(B) open and expand clean and efficient energy
technology markets and facilitate the export of clean
and efficient energy technologies to developing
countries, in a manner consistent with United States
obligations as a member of the World Trade Organization;
(C) integrate into the foreign policy objectives of
the United States the promotion of--
(i) the deployment of clean and efficient
energy technologies and the reduction of
greenhouse gas emissions in developing countries;
and
(ii) the export of clean and efficient energy
technologies; and
(D) develop financial mechanisms and instruments,
including securities that mitigate the political and
foreign exchange risks of uses that are consistent with
the foreign policy objectives of the United States by
combining the private sector market and government
enhancements, that--
(i) are cost-effective; and

[[Page 1730]]
121 STAT. 1730

(ii) facilitate private capital investment in
clean and efficient energy technology projects in
developing countries.
(2) Updates.--Not [NOTE: Deadline.  later than 3 years
after the date of submission of the strategy under paragraph
(1), and every 3 years thereafter, the Task Force shall update
the strategy in accordance with the requirements of paragraph
(1).

(d) Report.--
(1) In general.--Not [NOTE: President.  later than 3
years after the date of submission of the strategy under
subsection (c)(1), and every 3 years thereafter, the President
shall transmit to the appropriate congressional committees a
report on the implementation of this section for the prior 3-
year period.
(2) Matters to be included.--The report required under
paragraph (1) shall include the following:
(A) The update of the strategy required under
subsection (c)(2) and a description of the actions taken
by the Task Force to assist in the implementation of the
strategy.
(B) A description of actions taken by the Task Force
to carry out the duties required under subsection
(a)(4)(B).
(C) A description of assistance provided under this
section.
(D) The results of programs, projects, and
activities carried out under this section.
(E) A description of priorities for promoting the
diffusion and adoption of clean and efficient energy
technologies and strategies in developing countries,
taking into account economic and security interests of
the United States and opportunities for the export of
technology of the United States.
(F) Recommendations to the heads of appropriate
Federal departments and agencies on methods to
streamline Federal programs and policies to improve the
role of such Federal departments and agencies in the
development, demonstration, and deployment of clean and
efficient energy technologies on an international basis.
(G) Strategies to integrate representatives of the
private sector and other interested groups on the export
and deployment of clean and efficient energy
technologies.
(H) A description of programs to disseminate
information to the private sector and the public on
clean and efficient energy technologies and
opportunities to transfer such clean and efficient
energy technologies.

(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2020.

SEC. 917. [NOTE: 42 USC 17337.  UNITED STATES-ISRAEL ENERGY
COOPERATION.

(a) Findings.--Congress finds that--
(1) it is in the highest national security interests of the
United States to develop renewable energy sources;
(2) the State of Israel is a steadfast ally of the United
States;
(3) the special relationship between the United States and
Israel is manifested in a variety of cooperative scientific
research and development programs, such as--

[[Page 1731]]
121 STAT. 1731

(A) the United States-Israel Binational Science
Foundation; and
(B) the United States-Israel Binational Industrial
Research and Development Foundation;
(4) those programs have made possible many scientific,
technological, and commercial breakthroughs in the fields of
life sciences, medicine, bioengineering, agriculture,
biotechnology, communications, and others;
(5) on February 1, 1996, the Secretary of Energy (referred
to in this section as the ``Secretary'') and the Israeli
Minister of Energy and Infrastructure signed an agreement to
establish a framework for collaboration between the United
States and Israel in energy research and development activities;
(6) Israeli scientists and engineers are at the forefront of
research and development in the field of renewable energy
sources; and
(7) enhanced cooperation between the United States and
Israel for the purpose of research and development of renewable
energy sources would be in the national interests of both
countries.

(b) Grant Program.--
(1) Establishment.--In implementing the agreement entitled
the ``Agreement between the Department of Energy of the United
States of America and the Ministry of Energy and Infrastructure
of Israel Concerning Energy Cooperation'', dated February 1,
1996, the Secretary shall establish a grant program in
accordance with the requirements of sections 988 and 989 of the
Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) to support
research, development, and commercialization of renewable energy
or energy efficiency.
(2) Types of energy.--In carrying out paragraph (1), the
Secretary may make grants to promote--
(A) solar energy;
(B) biomass energy;
(C) energy efficiency;
(D) wind energy;
(E) geothermal energy;
(F) wave and tidal energy; and
(G) advanced battery technology.
(3) Eligible applicants.--An applicant shall be eligible to
receive a grant under this subsection if the project of the
applicant--
(A) addresses a requirement in the area of improved
energy efficiency or renewable energy sources, as
determined by the Secretary; and
(B) is a joint venture between--
(i)(I) a for-profit business entity, academic
institution, National Laboratory (as defined in
section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)), or nonprofit entity in the United
States; and
(II) a for-profit business entity, academic
institution, or nonprofit entity in Israel; or
(ii)(I) the Federal Government; and
(II) the Government of Israel.
(4) Applications.--To be eligible to receive a grant under
this subsection, an applicant shall submit to the Secretary an
application for the grant in accordance with procedures

[[Page 1732]]
121 STAT. 1732

established by the Secretary, in consultation with the advisory
board established under paragraph (5).
(5) Advisory board.--
(A) Establishment.--The Secretary shall establish an
advisory board--
(i) to monitor the method by which grants are
awarded under this subsection; and
(ii) to provide to the Secretary periodic
performance reviews of actions taken to carry out
this subsection.
(B) Composition.--The advisory board established
under subparagraph (A) shall be composed of 3 members,
to be appointed by the Secretary, of whom--
(i) 1 shall be a representative of the Federal
Government;
(ii) 1 shall be selected from a list of
nominees provided by the United States-Israel
Binational Science Foundation; and
(iii) 1 shall be selected from a list of
nominees provided by the United States-Israel
Binational Industrial Research and Development
Foundation.
(6) Contributed funds.--Notwithstanding section 3302 of
title 31, United States Code, the Secretary may accept, retain,
and use funds contributed by any person, government entity, or
organization for purposes of carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(7) Report.--Not later than 180 days after the date of
completion of a project for which a grant is provided under this
subsection, the grant recipient shall submit to the Secretary a
report that contains--
(A) a description of the method by which the
recipient used the grant funds; and
(B) an evaluation of the level of success of each
project funded by the grant.
(8) Classification.--Grants shall be awarded under this
subsection only for projects that are considered to be
unclassified by both the United States and Israel.

(c) Termination.--The grant program and the advisory committee
established under this section terminate on the date that is 7 years
after the date of enactment of this Act.
(d) Authorization of Appropriations.--The Secretary shall use
amounts authorized to be appropriated under section 931 of the Energy
Policy Act of 2005 (42 U.S.C. 16231) to carry out this section.

Subtitle B--International Clean Energy Foundation

SEC. 921. [NOTE: 42 USC 17351.  DEFINITIONS.

In this subtitle:
(1) Board.--The term ``Board'' means the Board of Directors
of the Foundation established pursuant to section 922(c).

[[Page 1733]]
121 STAT. 1733

(2) Chief executive officer.--The term ``Chief Executive
Officer'' means the chief executive officer of the Foundation
appointed pursuant to section 922(b).
(3) Foundation.--The term ``Foundation'' means the
International Clean Energy Foundation established by section
922(a).

SEC. 922. [NOTE: 42 USC 17352.  ESTABLISHMENT AND MANAGEMENT OF
FOUNDATION.

(a) Establishment.--
(1) In general.--There is established in the executive
branch a foundation to be known as the ``International Clean
Energy Foundation'' that shall be responsible for carrying out
the provisions of this subtitle. The Foundation shall be a
government corporation, as defined in section 103 of title 5,
United States Code.
(2) Board of directors.--The Foundation shall be governed by
a Board of Directors in accordance with subsection (c).
(3) Intent of congress.--It is the intent of Congress, in
establishing the structure of the Foundation set forth in this
subsection, to create an entity that serves the long-term
foreign policy and energy security goals of reducing global
greenhouse gas emissions.

(b) Chief Executive Officer.--
(1) In general.--There shall be in the Foundation a Chief
Executive Officer who shall be responsible for the management of
the Foundation.
(2) Appointment.--The Chief Executive Officer shall be
appointed by the Board, with the advice and consent of the
Senate, and shall be a recognized leader in clean and efficient
energy technologies and climate change and shall have experience
in energy security, business, or foreign policy, chosen on the
basis of a rigorous search.
(3) Relationship to board.--The Chief Executive Officer
shall report to, and be under the direct authority of, the
Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer shall
be compensated at the rate provided for level III of the
Executive Schedule under section 5314 of title 5, United
States Code.
(B) Amendment.--Section 5314 of title 5, United
States Code, is amended by adding at the end the
following:
``Chief Executive Officer, International Clean Energy
Foundation.''.
(C) Authorities and duties.--The Chief Executive
Officer shall be responsible for the management of the
Foundation and shall exercise the powers and discharge
the duties of the Foundation.
(D) Authority to appoint officers.--In consultation
and with approval of the Board, the Chief Executive
Officer shall appoint all officers of the Foundation.

(c) Board of Directors.--
(1) Establishment.--There shall be in the Foundation a Board
of Directors.
(2) Duties.--The Board shall perform the functions specified
to be carried out by the Board in this subtitle and may
prescribe, amend, and repeal bylaws, rules, regulations, and

[[Page 1734]]
121 STAT. 1734

procedures governing the manner in which the business of the
Foundation may be conducted and in which the powers granted to
it by law may be exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State (or the Secretary's
designee), the Secretary of Energy (or the Secretary's
designee), and the Administrator of the United States
Agency for International Development (or the
Administrator's designee); and
(B) four other individuals with relevant experience
in matters relating to energy security (such as
individuals who represent institutions of energy policy,
business organizations, foreign policy organizations, or
other relevant organizations) who shall be appointed by
the President, by and with the advice and consent of the
Senate, of whom--
(i) one individual shall be appointed from
among a list of individuals submitted by the
Majority Leader of the House of Representatives;
(ii) one individual shall be appointed from
among a list of individuals submitted by the
Minority Leader of the House of Representatives;
(iii) one individual shall be appointed from
among a list of individuals submitted by the
Majority Leader of the Senate; and
(iv) one individual shall be appointed from
among a list of individuals submitted by the
Minority Leader of the Senate.
(4) Chief executive officer.--The Chief Executive Officer of
the Foundation shall serve as a nonvoting, ex officio member of
the Board.
(5) Terms.--
(A) Officers of the federal government.--Each member
of the Board described in paragraph (3)(A) shall serve
for a term that is concurrent with the term of service
of the individual's position as an officer within the
other Federal department or agency.
(B) Other members.--Each member of the Board
described in paragraph (3)(B) shall be appointed for a
term of 3 years and may be reappointed for a term of an
additional 3 years.
(C) Vacancies.--A vacancy in the Board shall be
filled in the manner in which the original appointment
was made.
(D) Acting members.--A vacancy in the Board may be
filled with an appointment of an acting member by the
Chairperson of the Board for up to 1 year while a
nominee is named and awaits confirmation in accordance
with paragraph (3)(B).
(6) Chairperson.--There shall be a Chairperson of the Board.
The Secretary of State (or the Secretary's designee) shall serve
as the Chairperson.
(7) Quorum.--A majority of the members of the Board
described in paragraph (3) shall constitute a quorum, which,
except with respect to a meeting of the Board during the 135-day
period beginning on the date of the enactment of this Act, shall
include at least 1 member of the Board described in paragraph
(3)(B).

[[Page 1735]]
121 STAT. 1735

(8) Meetings.--The Board shall meet at the call of the
Chairperson, who shall call a meeting no less than once a year.
(9) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the Board
described in paragraph (3)(A) may not receive
additional pay, allowances, or benefits by reason
of the member's service on the Board.
(ii) Travel expenses.--Each such member of the
Board shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with
applicable provisions under subchapter I of
chapter 57 of title 5, United States Code.
(B) Other members.--
(i) In general.--Except as provided in clause
(ii), a member of the Board described in paragraph
(3)(B)--
(I) shall be paid compensation out
of funds made available for the purposes
of this subtitle at the daily equivalent
of the highest rate payable under
section 5332 of title 5, United States
Code, for each day (including travel
time) during which the member is engaged
in the actual performance of duties as a
member of the Board; and
(II) while away from the member's
home or regular place of business on
necessary travel in the actual
performance of duties as a member of the
Board, shall be paid per diem, travel,
and transportation expenses in the same
manner as is provided under subchapter I
of chapter 57 of title 5, United States
Code.
(ii) Limitation.--A member of the Board may
not be paid compensation under clause (i)(II) for
more than 90 days in any calendar year.

SEC. 923. [NOTE: 42 USC 17353.  DUTIES OF FOUNDATION.

The Foundation shall--
(1) use the funds authorized by this subtitle to make grants
to promote projects outside of the United States that serve as
models of how to significantly reduce the emissions of global
greenhouse gases through clean and efficient energy
technologies, processes, and services;
(2) seek contributions from foreign governments, especially
those rich in energy resources such as member countries of the
Organization of the Petroleum Exporting Countries, and private
organizations to supplement funds made available under this
subtitle;
(3) harness global expertise through collaborative
partnerships with foreign governments and domestic and foreign
private actors, including nongovernmental organizations and
private sector companies, by leveraging public and private
capital, technology, expertise, and services towards innovative
models that can be instituted to reduce global greenhouse gas
emissions;
(4) create a repository of information on best practices and
lessons learned on the utilization and implementation of

[[Page 1736]]
121 STAT. 1736

clean and efficient energy technologies and processes to be used
for future initiatives to tackle the climate change crisis;
(5) be committed to minimizing administrative costs and to
maximizing the availability of funds for grants under this
subtitle; and
(6) promote the use of American-made clean and efficient
energy technologies, processes, and services by giving
preference to entities incorporated in the United States and
whose technology will be substantially manufactured in the
United States.

SEC. 924. [NOTE: 42 USC 17354.  ANNUAL REPORT.

(a) Report Required.--Not later than March 31, 2008, and each March
31 thereafter, the Foundation shall submit to the appropriate
congressional committees a report on the implementation of this subtitle
during the prior fiscal year.
(b) Contents.--The report required by subsection (a) shall include--
(1) the total financial resources available to the
Foundation during the year, including appropriated funds, the
value and source of any gifts or donations accepted pursuant to
section 925(a)(6), and any other resources;
(2) a description of the Board's policy priorities for the
year and the basis upon which competitive grant proposals were
solicited and awarded to nongovernmental institutions and other
organizations;
(3) a list of grants made to nongovernmental institutions
and other organizations that includes the identity of the
institutional recipient, the dollar amount, and the results of
the program; and
(4) the total administrative and operating expenses of the
Foundation for the year, as well as specific information on--
(A) the number of Foundation employees and the cost
of compensation for Board members, Foundation employ-
ees, and personal service contractors;
(B) costs associated with securing the use of real
property for carrying out the functions of the
Foundation;
(C) total travel expenses incurred by Board members
and Foundation employees in connection with Foundation
activities; and
(D) total representational expenses.

SEC. 925. [NOTE: 42 USC 17355.  POWERS OF THE FOUNDATION; RELATED
PROVISIONS.

(a) Powers.--The Foundation--
(1) shall have perpetual succession unless dissolved by a
law enacted after the date of the enactment of this Act;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may make and perform such contracts, grants, and other
agreements with any person or government however designated and
wherever situated, as may be necessary for carrying out the
functions of the Foundation;
(4) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and paid,
including expenses for representation;
(5) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Foundation;

[[Page 1737]]
121 STAT. 1737

(6) may accept money, funds, services, or property (real,
personal, or mixed), tangible or intangible, made available by
gift, bequest grant, or otherwise for the purpose of carrying
out the provisions of this title from domestic or foreign
private individuals, charities, nongovernmental organizations,
corporations, or governments;
(7) may use the United States mails in the same manner and
on the same conditions as the executive departments;
(8) may contract with individuals for personal services, who
shall not be considered Federal employees for any provision of
law administered by the Office of Personnel Management;
(9) may hire or obtain passenger motor vehicles; and
(10) shall have such other powers as may be necessary and
incident to carrying out this subtitle.

(b) Principal Office.--The Foundation shall maintain its principal
office in the metropolitan area of Washington, District of Columbia.
(c) Applicability of Government Corporation Control Act.--
(1) In general.--The Foundation shall be subject to chapter
91 of subtitle VI of title 31, United States Code, except that
the Foundation shall not be authorized to issue obligations or
offer obligations to the public.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(R) the International Clean Energy Foundation.''.

(d) Inspector General.--
(1) In general.--The Inspector General of the Department of
State shall serve as Inspector General of the Foundation, and,
in acting in such capacity, may conduct reviews, investigations,
and inspections of all aspects of the operations and activities
of the Foundation.
(2) Authority of the board.--In carrying out the
responsibilities under this subsection, the Inspector General
shall report to and be under the general supervision of the
Board.
(3) Reimbursement and authorization of services.--
(A) Reimbursement.--The Foundation shall reimburse
the Department of State for all expenses incurred by the
Inspector General in connection with the Inspector
General's responsibilities under this subsection.
(B) Authorization for services.--Of the amount
authorized to be appropriated under section 927(a) for a
fiscal year, up to $500,000 is authorized to be made
available to the Inspector General of the Department of
State to conduct reviews, investigations, and
inspections of operations and activities of the
Foundation.

SEC. 926. [NOTE: 42 USC 17356.  GENERAL PERSONNEL AUTHORITIES.

(a) Detail of Personnel.--Upon request of the Chief Executive
Officer, the head of an agency may detail any employee of such agency to
the Foundation on a reimbursable basis. Any employee so detailed
remains, for the purpose of preserving such employee's allowances,
privileges, rights, seniority, and other benefits, an employee of the
agency from which detailed.
(b) Reemployment Rights.--

[[Page 1738]]
121 STAT. 1738

(1) In general.--An employee of an agency who is serving
under a career or career conditional appointment (or the
equivalent), and who, with the consent of the head of such
agency, transfers to the Foundation, is entitled to be
reemployed in such employee's former position or a position of
like seniority, status, and pay in such agency, if such
employee--
(A) is separated from the Foundation for any reason,
other than misconduct, neglect of duty, or malfeasance;
and
(B) [NOTE: Deadline.  applies for reemployment
not later than 90 days after the date of separation from
the Foundation.
(2) Specific rights.--An [NOTE: Deadline.  employee who
satisfies paragraph (1) is entitled to be reemployed (in
accordance with such paragraph) within 30 days after applying
for reemployment and, on reemployment, is entitled to at least
the rate of basic pay to which such employee would have been
entitled had such employee never transferred.

(c) Hiring Authority.--Of persons employed by the Foundation, no
more than 30 persons may be appointed, compensated, or removed without
regard to the civil service laws and regulations.
(d) Basic Pay.--The Chief Executive Officer may fix the rate of
basic pay of employees of the Foundation without regard to the
provisions of chapter 51 of title 5, United States Code (relating to the
classification of positions), subchapter III of chapter 53 of such title
(relating to General Schedule pay rates), except that no employee of the
Foundation may receive a rate of basic pay that exceeds the rate for
level IV of the Executive Schedule under section 5315 of such title.
(e) Definitions.--In this section--
(1) the term ``agency'' means an executive agency, as
defined by section 105 of title 5, United States Code; and
(2) the term ``detail'' means the assignment or loan of an
employee, without a change of position, from the agency by which
such employee is employed to the Foundation.

SEC. 927. [NOTE: 42 USC 17357.  AUTHORIZATION OF APPROPRIATIONS.

(a) Authorization of Appropriations.--To carry out this subtitle,
there are authorized to be appropriated $20,000,000 for each of the
fiscal years 2009 through 2013.
(b) Allocation of Funds.--
(1) In general.--The Foundation may allocate or transfer to
any agency of the United States Government any of the funds
available for carrying out this subtitle. Such funds shall be
available for obligation and expenditure for the purposes for
which the funds were authorized, in accordance with authority
granted in this subtitle or under authority governing the
activities of the United States Government agency to which such
funds are allocated or transferred.
(2) Notification.--The [NOTE: Deadline.  Foundation shall
notify the appropriate congressional committees not less than 15
days prior to an allocation or transfer of funds pursuant to
paragraph (1).

[[Page 1739]]
121 STAT. 1739

Subtitle C--Miscellaneous Provisions

SEC. 931. [NOTE: 42 USC 17371.  ENERGY DIPLOMACY AND SECURITY WITHIN
THE DEPARTMENT OF STATE.

(a) State Department Coordinator for International Energy Affairs.--
(1) In general.--The Secretary of State should ensure that
energy security is integrated into the core mission of the
Department of State.
(2) Coordinator for international energy affairs.--There is
established within the Office of the Secretary of State a
Coordinator for International Energy Affairs, who shall be
responsible for--
(A) representing the Secretary of State in
interagency efforts to develop the international energy
policy of the United States;
(B) ensuring that analyses of the national security
implications of global energy and environmental
developments are reflected in the decision making
process within the Department of State;
(C) incorporating energy security priorities into
the activities of the Department of State;
(D) coordinating energy activities of the Department
of State with relevant Federal agencies; and
(E) coordinating energy security and other relevant
functions within the Department of State currently
undertaken by offices within--
(i) the Bureau of Economic, Energy and
Business Affairs;
(ii) the Bureau of Oceans and International
Environmental and Scientific Affairs; and
(iii) other offices within the Department of
State.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.

(b) Energy Experts in Key Embassies.--
Not [NOTE: Deadline. Reports.  later than 180 days after the date of
the enactment of this Act, the Secretary of State shall submit a report
to the Committee on Foreign Relations of the Senate and the Committee on
Foreign Affairs of the House of Representatives that includes--
(1) a description of the Department of State personnel who
are dedicated to energy matters and are stationed at embassies
and consulates in countries that are major energy producers or
consumers;
(2) an analysis of the need for Federal energy specialist
personnel in United States embassies and other United States
diplomatic missions; and
(3) recommendations for increasing energy expertise within
United States embassies among foreign service officers and
options for assigning to such embassies energy attaches from the
National Laboratories or other agencies within the Department of
Energy.

(c) Energy Advisors.--The Secretary of Energy may make appropriate
arrangements with the Secretary of State to assign personnel from the
Department of Energy or the National Laboratories of the Department of
Energy to serve as dedicated advisors

[[Page 1740]]
121 STAT. 1740

on energy matters in embassies of the United States or other United
States diplomatic missions.
(d) Report.--Not later than 180 days after the date of the enactment
of this Act, and every 2 years thereafter for the following 20 years,
the Secretary of State shall submit a report to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of the
House of Representatives that describes--
(1) the energy-related activities being conducted by the
Department of State, including activities within--
(A) the Bureau of Economic, Energy and Business
Affairs;
(B) the Bureau of Oceans and Environmental and
Scientific Affairs; and
(C) other offices within the Department of State;
(2) the amount of funds spent on each activity within each
office described in paragraph (1); and
(3) the number and qualification of personnel in each
embassy (or relevant foreign posting) of the United States whose
work is dedicated exclusively to energy matters.

SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.

Section 101(a) of the National Security Act of 1947 (50 U.S.C.
402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.

SEC. 933. [NOTE: 42 USC 17372.  ANNUAL NATIONAL ENERGY SECURITY
STRATEGY REPORT.

(a) Reports.--
(1) In general.--Subject [NOTE: President.  to paragraph
(2), on the date on which the President submits to Congress the
budget for the following fiscal year under section 1105 of title
31, United States Code, the President shall submit to Congress a
comprehensive report on the national energy security of the
United States.
(2) New presidents.--In addition to the reports required
under paragraph (1), the President shall submit a comprehensive
report on the national energy security of the United States by
not later than 150 days after the date on which the President
assumes the office of President after a presidential election.

(b) Contents.--Each report under this section shall describe the
national energy security strategy of the United States, including a
comprehensive description of--
(1) the worldwide interests, goals, and objectives of the
United States that are vital to the national energy security of
the United States;
(2) the foreign policy, worldwide commitments, and national
defense capabilities of the United States necessary--
(A) to deter political manipulation of world energy
resources; and
(B) to implement the national energy security
strategy of the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of the
United States--
(A) to protect or promote energy security; and

[[Page 1741]]
121 STAT. 1741

(B) to achieve the goals and objectives described in
paragraph (1);
(4) the adequacy of the capabilities of the United States to
protect the national energy security of the United States,
including an evaluation of the balance among the capabilities of
all elements of the national authority of the United States to
support the implementation of the national energy security
strategy; and
(5) such other information as the President determines to be
necessary to inform Congress on matters relating to the national
energy security of the United States.

(c) Classified and Unclassified Form.--Each national energy security
strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.

SEC. 934. [NOTE: 42 USC 17373.  CONVENTION ON SUPPLEMENTARY
COMPENSATION FOR NUCLEAR DAMAGE CONTINGENT COST ALLOCATION.

(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) (commonly known as the ``Price-Anderson
Act'')--
(i) provides a predictable legal framework
necessary for nuclear projects; and
(ii) ensures prompt and equitable compensation
in the event of a nuclear incident in the United
States;
(B) the Price-Anderson Act, in effect, provides
operators of nuclear powerplants with insurance for
damage arising out of a nuclear incident and funds the
insurance primarily through the assessment of a
retrospective premium from each operator after the
occurrence of a nuclear incident;
(C) the Convention on Supplementary Compensation for
Nuclear Damage, done at Vienna on September 12, 1997,
will establish a global system--
(i) to provide a predictable legal framework
necessary for nuclear energy projects; and
(ii) to ensure prompt and equitable
compensation in the event of a nuclear incident;
(D) the Convention benefits United States nuclear
suppliers that face potentially unlimited liability for
nuclear incidents that are not covered by the Price-
Anderson Act by replacing a potentially open-ended
liability with a predictable liability regime that, in
effect, provides nuclear suppliers with insurance for
damage arising out of such an incident;
(E) the Convention also benefits United States
nuclear facility operators that may be publicly liable
for a Price-Anderson incident by providing an additional
early source of funds to compensate damage arising out
of the Price-Anderson incident;
(F) the combined operation of the Convention, the
Price-Anderson Act, and this section will augment the
quantity of assured funds available for victims in a
wider variety of nuclear incidents while reducing the
potential liability of United States suppliers without
increasing potential costs to United States operators;

[[Page 1742]]
121 STAT. 1742

(G) the cost of those benefits is the obligation of
the United States to contribute to the supplementary
compensation fund established by the Convention;
(H) any such contribution should be funded in a
manner that does not--
(i) upset settled expectations based on the
liability regime established under the Price-
Anderson Act; or
(ii) shift to Federal taxpayers liability
risks for nuclear incidents at foreign
installations;
(I) with respect to a Price-Anderson incident, funds
already available under the Price-Anderson Act should be
used; and
(J) with respect to a nuclear incident outside the
United States not covered by the Price-Anderson Act, a
retrospective premium should be prorated among nuclear
suppliers relieved from potential liability for which
insurance is not available.
(2) Purpose.--The purpose of this section is to allocate the
contingent costs associated with participation by the United
States in the international nuclear liability compensation
system established by the Convention on Supplementary
Compensation for Nuclear Damage, done at Vienna on September 12,
1997--
(A) with respect to a Price-Anderson incident, by
using funds made available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210) to cover the
contingent costs in a manner that neither increases the
burdens nor decreases the benefits under section 170 of
that Act; and
(B) with respect to a covered incident outside the
United States that is not a Price-Anderson incident, by
allocating the contingent costs equitably, on the basis
of risk, among the class of nuclear suppliers relieved
by the Convention from the risk of potential liability
resulting from any covered incident outside the United
States.

(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost'' means the
cost to the United States in the event of a covered incident the
amount of which is equal to the amount of funds the United
States is obligated to make available under paragraph 1(b) of
Article III of the Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear Damage,
done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident'' means a
nuclear incident the occurrence of which results in a request
for funds pursuant to Article VII of the Convention.
(5) Covered installation.--The term ``covered installation''
means a nuclear installation at which the occurrence of a
nuclear incident could result in a request for funds under
Article VII of the Convention.
(6) Covered person.--
(A) In general.--The term ``covered person'' means--
(i) a United States person; and
(ii) an individual or entity (including an
agency or instrumentality of a foreign country)
that--

[[Page 1743]]
121 STAT. 1743

(I) is located in the United States;
or
(II) carries out an activity in the
United States.
(B) Exclusions.--The term ``covered person'' does
not include--
(i) the United States; or
(ii) any agency or instrumentality of the
United States.
(7) Nuclear supplier.--The term ``nuclear supplier'' means a
covered person (or a successor in interest of a covered person)
that--
(A) supplies facilities, equipment, fuel, services,
or technology pertaining to the design, construction,
operation, or decommissioning of a covered installation;
or
(B) transports nuclear materials that could result
in a covered incident.
(8) Price-anderson incident.--The term ``Price-Anderson
incident'' means a covered incident for which section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210) would make funds
available to compensate for public liability (as defined in
section 11 of that Act (42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) United states.--
(A) In general.--The term ``United States'' has the
meaning given the term in section 11 of the Atomic
Energy Act of 1954 (42 U.S.C. 2014).
(B) Inclusions.--The term ``United States''
includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of the
United States;
(iii) the Canal Zone; and
(iv) the waters of the United States
territorial sea under Presidential Proclamation
Number 5928, dated December 27, 1988 (43 U.S.C.
1331 note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident, national, or
citizen of the United States (other than an individual
residing outside of the United States and employed by a
person who is not a United States person); and
(B) any corporation, partnership, association, joint
stock company, business trust, unincorporated
organization, or sole proprietorship that is organized
under the laws of the United States.

(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used to
cover the contingent cost resulting from any Price-Anderson
incident.
(2) Effect.--The use of funds pursuant to paragraph (1)
shall not reduce the limitation on public liability established
under section 170 e. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(e)).

(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United States
under Article VII of the Convention with respect to

[[Page 1744]]
121 STAT. 1744

a Price-Anderson incident shall be used to satisfy public
liability resulting from the Price-Anderson incident.
(2) Amount.--The amount of public liability allowable under
section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
relating to a Price-Anderson incident under paragraph (1) shall
be increased by an amount equal to the difference between--
(A) the amount of funds made available for the
Price-Anderson incident under Article VII of the
Convention; and
(B) the amount of funds used under subsection (c) to
cover the contingent cost resulting from the Price-
Anderson incident.

(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided under paragraph (2),
each nuclear supplier shall participate in a retrospective risk
pooling program in accordance with this section to cover the
contingent cost resulting from a covered incident outside the
United States that is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear
supplier to participate in the retrospective risk
pooling program shall be deferred until the United
States is called on to provide funds pursuant to Article
VII of the Convention with respect to a covered incident
that is not a Price-Anderson incident.
(B) Amount of deferred payment.--The amount of a
deferred payment of a nuclear supplier under
subparagraph (A) shall be based on the risk-informed
assessment formula determined under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not [NOTE: Deadline.
later than 3 years after the date of the enactment
of this Act, and every 5 years thereafter, the
Secretary shall, by regulation, determine the
risk-informed assessment formula for the
allocation among nuclear suppliers of the
contingent cost resulting from a covered incident
that is not a Price-Anderson incident, taking into
account risk factors such as--
(I) the nature and intended purpose
of the goods and services supplied by
each nuclear supplier to each covered
installation outside the United States;
(II) the quantity of the goods and
services supplied by each nuclear
supplier to each covered installation
outside the United States;
(III) the hazards associated with
the supplied goods and services if the
goods and services fail to achieve the
intended purposes;
(IV) the hazards associated with the
covered installation outside the United
States to which the goods and services
are supplied;
(V) the legal, regulatory, and
financial infrastructure associated with
the covered installation outside the
United States to which the goods and
services are supplied; and

[[Page 1745]]
121 STAT. 1745

(VI) the hazards associated with
particular forms of transportation.
(ii) Factors for consideration.--In
determining the formula, the Secretary may--
(I) exclude--
(aa) goods and services with
negligible risk;
(bb) classes of goods and
services not intended
specifically for use in a
nuclear installation;
(cc) a nuclear supplier with
a de minimis share of the
contingent cost; and
(dd) a nuclear supplier no
longer in existence for which
there is no identifiable
successor; and
(II) establish the period on which
the risk assessment is based.
(iii) Application.--In applying the formula,
the Secretary shall not consider any covered
installation or transportation for which funds
would be available under section 170 of the Atomic
Energy Act of 1954 (42 U.S.C. 2210).
(iv) Report.--Not later than 5 years after the
date of the enactment of this Act, and every 5
years thereafter, the Secretary shall submit to
the Committee on Environment and Public Works of
the Senate and the Committee on Energy and
Commerce of the House of Representatives, a report
on whether there is a need for continuation or
amendment of this section, taking into account the
effects of the implementation of the Convention on
the United States nuclear industry and suppliers.

(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect
information necessary for developing and implementing
the formula for calculating the deferred payment of a
nuclear supplier under subsection (e)(2).
(B) Provision of information.--Each nuclear supplier
and other appropriate persons shall make available to
the Secretary such information, reports, records,
documents, and other data as the Secretary determines,
by regulation, to be necessary or appropriate to develop
and implement the formula under subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make available
to nuclear suppliers, and insurers of nuclear suppliers,
information to support the voluntary establishment and
maintenance of private insurance against any risk for which
nuclear suppliers may be required to pay deferred payments under
this section.

(g) Effect on Liability.--Nothing in any other law (including
regulations) limits liability for a covered incident to an amount equal
to less than the amount prescribed in paragraph 1(a) of Article IV of
the Convention, unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies, impairs,
displaces, or supersedes the effect of this subsection.

[[Page 1746]]
121 STAT. 1746

(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request for
funds under Article VII of the Convention resulting from
a covered incident that is not a Price-Anderson
incident, the Secretary shall notify each nuclear
supplier of the amount of the deferred payment required
to be made by the nuclear supplier.
(B) Payments.--
(i) In general.--Except [NOTE: Deadline.
as provided under clause (ii), not later than 60
days after receipt of a notification under
subparagraph (A), a nuclear supplier shall pay to
the general fund of the Treasury the deferred
payment of the nuclear supplier required under
subparagraph (A).
(ii) Annual payments.--A nuclear supplier may
elect to prorate payment of the deferred payment
required under subparagraph (A) in 5 equal annual
payments (including interest on the unpaid balance
at the prime rate prevailing at the time the first
payment is due).
(C) Vouchers.--A nuclear supplier shall submit
payment certification vouchers to the Secretary of the
Treasury in accordance with section 3325 of title 31,
United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the Treasury
under paragraph (1) shall be available to the Secretary
of the Treasury, without further appropriation and
without fiscal year limitation, for the purpose of
making the contributions of public funds required to be
made by the United States under the Convention.
(B) Action by secretary of treasury.--The Secretary
of the Treasury shall pay the contribution required
under the Convention to the court of competent
jurisdiction under Article XIII of the Convention with
respect to the applicable covered incident.
(3) Failure to pay.--If a nuclear supplier fails to make a
payment required under this subsection, the Secretary may take
appropriate action to recover from the nuclear supplier--
(A) the amount of the payment due from the nuclear
supplier;
(B) any applicable interest on the payment; and
(C) a penalty of not more than twice the amount of
the deferred payment due from the nuclear supplier.

(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising under
the Convention over which Article XIII of the Convention
grants jurisdiction to the courts of the United States,
any appeal or review by writ of mandamus or otherwise
with respect to a nuclear incident that is not a Price-
Anderson incident shall be in accordance with chapter 83
of title 28, United States Code, except that the appeal
or review shall occur in the United States Court of
Appeals for the District of Columbia Circuit.

[[Page 1747]]
121 STAT. 1747

(B) Supreme court jurisdiction.--Nothing in this
paragraph affects the jurisdiction of the Supreme Court
of the United States under chapter 81 of title 28,
United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B), in any
civil action arising under the Convention over which
Article XIII of the Convention grants jurisdiction to
the courts of the United States, in addition to any
other cause of action that may exist, an individual or
entity shall have a cause of action against the operator
to recover for nuclear damage suffered by the individual
or entity.
(B) Requirement.--Subparagraph (A) shall apply only
if the individual or entity seeks a remedy for nuclear
damage (as defined in Article I of the Convention) that
was caused by a nuclear incident (as defined in Article
I of the Convention) that is not a Price-Anderson
incident.
(C) Savings provision.--Nothing in this paragraph
may be construed to limit, modify, extinguish, or
otherwise affect any cause of action that would have
existed in the absence of enactment of this paragraph.

(j) Right of Recourse.--This section does not provide to an operator
of a covered installation any right of recourse under the Convention.
(k) Protection of Sensitive United States Information.--Nothing in
the Convention or this section requires the disclosure of--
(1) any data that, at any time, was Restricted Data (as
defined in section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014));
(2) information relating to intelligence sources or methods
protected by section 102A(i) of the National Security Act of
1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under Executive
Order 12958 (50 U.S.C. 435 note; relating to classified national
security information) (or a successor Executive Order or
regulation).

(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out section 170
of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this
section.
(2) Requirement.--Rules prescribed under this subsection
shall ensure, to the maximum extent practicable, that--
(A) the implementation of section 170 of the Atomic
Energy Act of 1954 (42 U.S.C. 2210) and this section is
consistent and equitable; and
(B) the financial and operational burden on a
Commission licensee in complying with section 170 of
that Act is not greater as a result of the enactment of
this section.
(3) Applicability of provision.--Section 553 of title 5,
United States Code, shall apply with respect to the promulgation
of regulations under this subsection.
(4) Effect of subsection.--The authority provided under this
subsection is in addition to, and does not impair or otherwise
affect, any other authority of the Secretary or the Commission
to prescribe regulations.

[[Page 1748]]
121 STAT. 1748

(m) Effective Date.--This section shall take effect on the date of
the enactment of this Act.

SEC. 935. [NOTE: 42 USC 17374.  TRANSPARENCY IN EXTRACTIVE INDUSTRIES
RESOURCE PAYMENTS.

(a) Purpose.--The purpose of this section is to--
(1) ensure greater United States energy security by
combating corruption in the governments of foreign countries
that receive revenues from the sale of their natural resources;
and
(2) enhance the development of democracy and increase
political and economic stability in such resource rich foreign
countries.

(b) Statement of Policy.--It is the policy of the United States--
(1) to increase energy security by promoting anti-corruption
initiatives in oil and natural gas rich countries; and
(2) to promote global energy security through promotion of
programs such as the Extractive Industries Transparency
Initiative (EITI) that seek to instill transparency and
accountability into extractive industries resource payments.

(c) Sense of Congress.--It is the sense of Congress that the United
States should further global energy security and promote democratic
development in resource-rich foreign countries by--
(1) encouraging further participation in the EITI by
eligible countries and companies; and
(2) promoting the efficacy of the EITI program by ensuring a
robust and candid review mechanism.

(d) Report.--
(1) Report required.--Not later than 180 days after the date
of the enactment of this Act, and annually thereafter, the
Secretary of State, in consultation with the Secretary of
Energy, shall submit to the appropriate congressional committees
a report on progress made in promoting transparency in
extractive industries resource payments.
(2) Matters to be included.--The report required by
paragraph (1) shall include a detailed description of United
States participation in the EITI, bilateral and multilateral
diplomatic efforts to further participation in the EITI, and
other United States initiatives to strengthen energy security,
deter energy kleptocracy, and promote transparency in the
extractive industries.

(e) Authorization of Appropriations.--There is authorized to be
appropriated $3,000,000 for the purposes of United States contributions
to the Multi-Donor Trust Fund of the EITI.

TITLE [NOTE: Green Jobs Act of 2007. X--GREEN JOBS

SEC. 1001. [NOTE: 29 USC 2801 note.  SHORT TITLE.

This title may be cited as the ``Green Jobs Act of 2007''.

SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER TRAINING
PROGRAM.

Section 171 of the Workforce Investment Act of 1998 (29 U.S.C. 2916)
is amended by adding at the end the following:
``(e) Energy Efficiency and Renewable Energy Worker Training
Program.--
``(1) Grant program.--

[[Page 1749]]
121 STAT. 1749

``(A) In general.--Not [NOTE: Deadline.  later
than 6 months after the date of enactment of the Green
Jobs Act of 2007, the Secretary, in consultation with
the Secretary of Energy, shall establish an energy
efficiency and renewable energy worker training program
under which the Secretary shall carry out the activities
described in paragraph (2) to achieve the purposes of
this subsection.
``(B) Eligibility.--For purposes of providing
assistance and services under the program established
under this subsection--
``(i) target populations of eligible
individuals to be given priority for training and
other services shall include--
``(I) workers impacted by national
energy and environmental policy;
``(II) individuals in need of
updated training related to the energy
efficiency and renewable energy
industries;
``(III) veterans, or past and
present members of reserve components of
the Armed Forces;
``(IV) unemployed individuals;
``(V) individuals, including at-risk
youth, seeking employment pathways out
of poverty and into economic self-
sufficiency; and
``(VI) formerly incarcerated,
adjudicated, nonviolent offenders; and
``(ii) energy efficiency and renewable energy
industries eligible to participate in a program
under this subsection include--
``(I) the energy-efficient building,
construction, and retrofits industries;
``(II) the renewable electric power
industry;
``(III) the energy efficient and
advanced drive train vehicle industry;
``(IV) the biofuels industry;
``(V) the deconstruction and
materials use industries;
``(VI) the energy efficiency
assessment industry serving the
residential, commercial, or industrial
sectors; and
``(VII) manufacturers that produce
sustainable products using
environmentally sustainable processes
and materials.
``(2) Activities.--
``(A) National research program.--Under the program
established under paragraph (1), the Secretary, acting
through the Bureau of Labor Statistics, where
appropriate, shall collect and analyze labor market data
to track workforce trends resulting from energy-related
initiatives carried out under this subsection.
Activities carried out under this paragraph shall
include--
``(i) tracking and documentation of academic
and occupational competencies as well as future
skill needs with respect to renewable energy and
energy efficiency technology;

[[Page 1750]]
121 STAT. 1750

``(ii) tracking and documentation of
occupational information and workforce training
data with respect to renewable energy and energy
efficiency technology;
``(iii) collaborating with State agencies,
workforce investments boards, industry, organized
labor, and community and nonprofit organizations
to disseminate information on successful
innovations for labor market services and worker
training with respect to renewable energy and
energy efficiency technology;
``(iv) serving as a clearinghouse for best
practices in workforce development, job placement,
and collaborative training partnerships;
``(v) encouraging the establishment of
workforce training initiatives with respect to
renewable energy and energy efficiency
technologies;
``(vi) linking research and development in
renewable energy and energy efficiency technology
with the development of standards and curricula
for current and future jobs;
``(vii) assessing new employment and work
practices including career ladder and upgrade
training as well as high performance work systems;
and
``(viii) providing technical assistance and
capacity building to national and State energy
partnerships, including industry and labor
representatives.
``(B) National energy training partnership grants.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award National Energy Training Partnerships
Grants on a competitive basis to eligible entities
to enable such entities to carry out training that
leads to economic self-sufficiency and to develop
an energy efficiency and renewable energy
industries workforce. Grants shall be awarded
under this subparagraph so as to ensure geographic
diversity with at least 2 grants awarded to
entities located in each of the 4 Petroleum
Administration for Defense Districts with no
subdistricts, and at least 1 grant awarded to an
entity located in each of the subdistricts of the
Petroleum Administration for Defense District with
subdistricts.
``(ii) Eligibility.--To be eligible to receive
a grant under clause (i), an entity shall be a
nonprofit partnership that--
``(I) includes the equal
participation of industry, including
public or private employers, and labor
organizations, including joint labor-
management training programs, and may
include workforce investment boards,
community-based organizations, qualified
service and conservation corps,
educational institutions, small
businesses, cooperatives, State and
local veterans agencies, and veterans
service organizations; and
``(II) demonstrates--
``(aa) experience in
implementing and operating
worker skills training and
education programs;

[[Page 1751]]
121 STAT. 1751

``(bb) the ability to
identify and involve in training
programs carried out under this
grant, target populations of
individuals who would benefit
from training and be actively
involved in activities related
to energy efficiency and
renewable energy industries; and
``(cc) the ability to help
individuals achieve economic
self-sufficiency.
``(iii) Priority.--Priority shall be given to
partnerships which leverage additional public and
private resources to fund training programs,
including cash or in-kind matches from
participating employers.
``(C) State labor market research, information, and
labor exchange research program.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award competitive grants to States to enable
such States to administer labor market and labor
exchange information programs that include the
implementation of the activities described in
clause (ii), in coordination with the one-stop
delivery system.
``(ii) Activities.--A State shall use amounts
awarded under a grant under this subparagraph to
provide funding to the State agency that
administers the Wagner-Peyser Act and State
unemployment compensation programs to carry out
the following activities using State agency merit
staff:
``(I) The identification of job
openings in the renewable energy and
energy efficiency sector.
``(II) The administration of skill
and aptitude testing and assessment for
workers.
``(III) The counseling, case
management, and referral of qualified
job seekers to openings and training
programs, including energy efficiency
and renewable energy training programs.
``(D) State energy training partnership program.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award competitive grants to States to enable
such States to administer renewable energy and
energy efficiency workforce development programs
that include the implementation of the activities
described in clause (ii).
``(ii) Partnerships.--A State shall use
amounts awarded under a grant under this
subparagraph to award competitive grants to
eligible State Energy Sector Partnerships to
enable such Partnerships to coordinate with
existing apprenticeship and labor management
training programs and implement training programs
that lead to the economic self-sufficiency of
trainees.
``(iii) Eligibility.--To be eligible to
receive a grant under this subparagraph, a State
Energy Sector Partnership shall--
``(I) consist of nonprofit
organizations that include equal
participation from industry, including
public or private nonprofit employers,

[[Page 1752]]
121 STAT. 1752

and labor organizations, including joint
labor-management training programs, and
may include representatives from local
governments, the workforce investment
system, including one-stop career
centers, community based organizations,
qualified service and conservation
corps, community colleges, and other
post-secondary institutions, small
businesses, cooperatives, State and
local veterans agencies, and veterans
service organizations;
``(II) demonstrate experience in
implementing and operating worker skills
training and education programs; and
``(III) demonstrate the ability to
identify and involve in training
programs, target populations of workers
who would benefit from training and be
actively involved in activities related
to energy efficiency and renewable
energy industries.
``(iv) Priority.--In awarding grants under
this subparagraph, the Secretary shall give
priority to States that demonstrate that
activities under the grant--
``(I) meet national energy policies
associated with energy efficiency,
renewable energy, and the reduction of
emissions of greenhouse gases;
``(II) meet State energy policies
associated with energy efficiency,
renewable energy, and the reduction of
emissions of greenhouse gases; and
``(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers.
``(v) Coordination.--A grantee under this
subparagraph shall coordinate activities carried
out under the grant with existing other
appropriate training programs, including
apprenticeship and labor management training
programs, including such activities referenced in
paragraph (3)(A), and implement training programs
that lead to the economic self-sufficiency of
trainees.
``(E) Pathways out of poverty demonstration
program.--
``(i) In general.--Under [NOTE: Grants.
the program established under paragraph (1), the
Secretary shall award competitive grants of
sufficient size to eligible entities to enable
such entities to carry out training that leads to
economic self-sufficiency. The Secretary shall
give priority to entities that serve individuals
in families with income of less than 200 percent
of the sufficiency standard for the local areas
where the training is conducted that specifies, as
defined by the State, or where such standard is
not established, the income needs of families, by
family size, the number and ages of children in
the family, and sub-State geographical
considerations. Grants shall be awarded to ensure
geographic diversity.
``(ii) Eligible entities.--To be eligible to
receive a grant an entity shall be a partnership
that--

[[Page 1753]]
121 STAT. 1753

``(I) includes community-based
nonprofit organizations, educational
institutions with expertise in serving
low-income adults or youth, public or
private employers from the industry
sectors described in paragraph
(1)(B)(ii), and labor organizations
representing workers in such industry
sectors;
``(II) demonstrates a record of
successful experience in implementing
and operating worker skills training and
education programs;
``(III) coordinates activities,
where appropriate, with the workforce
investment system; and
``(IV) demonstrates the ability to
recruit individuals for training and to
support such individuals to successful
completion in training programs carried
out under this grant, targeting
populations of workers who are or will
be engaged in activities related to
energy efficiency and renewable energy
industries.
``(iii) Priorities.--In awarding grants under
this paragraph, the Secretary shall give priority
to applicants that--
``(I) target programs to benefit
low-income workers, unemployed youth and
adults, high school dropouts, or other
underserved sectors of the workforce
within areas of high poverty;
``(II) ensure that supportive
services are integrated with education
and training, and delivered by
organizations with direct access to and
experience with targeted populations;
``(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers;
``(IV) involve employers and labor
organizations in the determination of
relevant skills and competencies and
ensure that the certificates or
credentials that result from the
training are employer-recognized;
``(V) deliver courses at alternative
times (such as evening and weekend
programs) and locations most convenient
and accessible to participants and link
adult remedial education with
occupational skills training; and
``(VI) demonstrate substantial
experience in administering local,
municipal, State, Federal, foundation,
or private entity grants.
``(iv) [NOTE: Reports.  Data collection.--
Grantees shall collect and report the following
information:
``(I) The number of participants.
``(II) The demographic
characteristics of participants,
including race, gender, age, parenting
status, participation in other Federal
programs, education and literacy level
at entry, significant barriers to
employment (such as limited English
proficiency, criminal record, addiction
or mental

[[Page 1754]]
121 STAT. 1754

health problem requiring treatment, or
mental disability).
``(III) The services received by
participants, including training,
education, and supportive services.
``(IV) The amount of program
spending per participant.
``(V) Program completion rates.
``(VI) Factors determined as
significantly interfering with program
participation or completion.
``(VII) The rate of job placement
and the rate of employment retention
after 1 year.
``(VIII) The average wage at
placement, including any benefits, and
the rate of average wage increase after
1 year.
``(IX) Any post-employment
supportive services provided.
The Secretary shall assist grantees in the
collection of data under this clause by making
available, where practicable, low-cost means of
tracking the labor market outcomes of
participants, and by providing standardized
reporting forms, where appropriate.
``(3) Activities.--
``(A) In general.--Activities to be carried out
under a program authorized by subparagraph (B), (D), or
(E) of paragraph (2) shall be coordinated with existing
systems or providers, as appropriate. Such activities
may include--
``(i) occupational skills training, including
curriculum development, on-the-job training, and
classroom training;
``(ii) safety and health training;
``(iii) the provision of basic skills,
literacy, GED, English as a second language, and
job readiness training;
``(iv) individual referral and tuition
assistance for a community college training
program, or any training program leading to an
industry-recognized certificate;
``(v) internship programs in fields related to
energy efficiency and renewable energy;
``(vi) customized training in conjunction with
an existing registered apprenticeship program or
labor-management partnership;
``(vii) incumbent worker and career ladder
training and skill upgrading and retraining;
``(viii) the implementation of transitional
jobs strategies; and
``(ix) the provision of supportive services.
``(B) Outreach activities.--In addition to the
activities authorized under subparagraph (A), activities
authorized for programs under subparagraph (E) of
paragraph (2) may include the provision of outreach,
recruitment, career guidance, and case management
services.
``(4) Worker protections and nondiscrimination
requirements.--
``(A) [NOTE: Applicability.  Application of
wia.--The provisions of sections 181 and 188 of the
Workforce Investment Act of 1998

[[Page 1755]]
121 STAT. 1755

(29 U.S.C. 2931 and 2938) shall apply to all programs
carried out with assistance under this subsection.
``(B) Consultation with labor organizations.--If a
labor organization represents a substantial number of
workers who are engaged in similar work or training in
an area that is the same as the area that is proposed to
be funded under this Act, the labor organization shall
be provided an opportunity to be consulted and to submit
comments in regard to such a proposal.
``(5) Performance measures.--
``(A) In general.--The Secretary shall negotiate and
reach agreement with the eligible entities that receive
grants and assistance under this section on performance
measures for the indicators of performance referred to
in subparagraphs (A) and (B) of section 136(b)(2) that
will be used to evaluate the performance of the eligible
entity in carrying out the activities described in
subsection (e)(2). Each performance measure shall
consist of such an indicator of performance, and a
performance level referred to in subparagraph (B).
``(B) Performance levels.--The Secretary shall
negotiate and reach agreement with the eligible entity
regarding the levels of performance expected to be
achieved by the eligible entity on the indicators of
performance.
``(6) Report.--
``(A) Status report.--Not later than 18 months after
the date of enactment of the Green Jobs Act of 2007, the
Secretary shall transmit a report to the Senate
Committee on Energy and Natural Resources, the Senate
Committee on Health, Education, Labor, and Pensions, the
House Committee on Education and Labor, and the House
Committee on Energy and Commerce on the training program
established by this subsection. The report shall include
a description of the entities receiving funding and the
activities carried out by such entities.
``(B) Evaluation.--Not [NOTE: Deadline.  later
than 3 years after the date of enactment of such Act,
the Secretary shall transmit to the Senate Committee on
Energy and Natural Resources, the Senate Committee on
Health, Education, Labor, and Pensions, the House
Committee on Education and Labor, and the House
Committee on Energy and Commerce an assessment of such
program and an evaluation of the activities carried out
by entities receiving funding from such program.
``(7) Definition.--As used in this subsection, the term
`renewable energy' has the meaning given such term in section
203(b)(2) of the Energy Policy Act of 2005 (Public Law 109-58).
``(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $125,000,000
for each fiscal year, of which--
``(A) not to exceed 20 percent of the amount
appropriated in each such fiscal year shall be made
available for, and shall be equally divided between,
national labor market research and information under
paragraph (2)(A) and State labor market information and
labor exchange research under paragraph (2)(C), and not
more than 2

[[Page 1756]]
121 STAT. 1756

percent of such amount shall be for the evaluation and
report required under paragraph (4);
``(B) 20 percent shall be dedicated to Pathways Out
of Poverty Demonstration Programs under paragraph
(2)(E); and
``(C) the remainder shall be divided equally between
National Energy Partnership Training Grants under
paragraph (2)(B) and State energy training partnership
grants under paragraph (2)(D).''.

TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

Subtitle A--Department of Transportation

SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.

(a) In General.--Section 102 of title 49, United States Code, is
amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:

``(g) Office of Climate Change and Environment.--
``(1) Establishment.--There is established in the Department
an Office of Climate Change and Environment to plan, coordinate,
and implement--
``(A) department-wide research, strategies, and
actions under the Department's statutory authority to
reduce transportation-related energy use and mitigate
the effects of climate change; and
``(B) department-wide research strategies and
actions to address the impacts of climate change on
transportation systems and infrastructure.
``(2) Clearinghouse.--The [NOTE: Establishment.  Office
shall establish a clearinghouse of solutions, including cost-
effective congestion reduction approaches, to reduce air
pollution and transportation-related energy use and mitigate the
effects of climate change.''.

(b) [NOTE: 49 USC 102 note.  Coordination.--The Office of Climate
Change and Environment of the Department of Transportation shall
coordinate its activities with the United States Global Change Research
Program.

(c) Transportation System's Impact on Climate Change and Fuel
Efficiency.--
(1) Study.--The Office of Climate Change and Environment, in
coordination with the Environmental Protection Agency and in
consultation with the United States Global Change Research
Program, shall conduct a study to examine the impact of the
Nation's transportation system on climate change and the fuel
efficiency savings and clean air impacts of major transportation
projects, to identify solutions to reduce air pollution and
transportation-related energy use and mitigate the effects of
climate change, and to examine the potential fuel savings that
could result from changes in the current transportation system
and through the use of intelligent transportation systems that
help businesses and consumers to plan their travel and avoid
delays, including Web-based real-time transit information
systems, congestion information

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121 STAT. 1757

systems, carpool information systems, parking information
systems, freight route management systems, and traffic
management systems.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Transportation, in
coordination with the Administrator of the Environmental
Protection Agency, shall transmit to the Committee on
Transportation and Infrastructure and the Committee on Energy
and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation and the Committee on
Environment and Public Works of the Senate a report that
contains the results of the study required under this section.

(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation for the Office of
Climate Change and Environment to carry out its duties under section
102(g) of title 49, United States Code (as amended by this Act), such
sums as may be necessary for fiscal years 2008 through 2011.

Subtitle B--Railroads

SEC. 1111. [NOTE: 42 USC 16101 note.  ADVANCED TECHNOLOGY LOCOMOTIVE
GRANT PILOT PROGRAM.

(a) In General.--The Secretary of Transportation, in consultation
with the Administrator of the Environmental Protection Agency, shall
establish and carry out a pilot program for making grants to railroad
carriers (as defined in section 20102 of title 49, United States Code)
and State and local governments--
(1) for assistance in purchasing hybrid or other energy-
efficient locomotives, including hybrid switch and generator-set
locomotives; and
(2) to demonstrate the extent to which such locomotives
increase fuel economy, reduce emissions, and lower costs of
operation.

(b) Limitation.--Notwithstanding subsection (a), no grant under this
section may be used to fund the costs of emissions reductions that are
mandated under Federal law.
(c) Grant Criteria.--In selecting applicants for grants under this
section, the Secretary of Transportation shall consider--
(1) the level of energy efficiency that would be achieved by
the proposed project;
(2) the extent to which the proposed project would assist in
commercial deployment of hybrid or other energy-efficient
locomotive technologies;
(3) the extent to which the proposed project complements
other private or governmental partnership efforts to improve air
quality or fuel efficiency in a particular area; and
(4) the extent to which the applicant demonstrates
innovative strategies and a financial commitment to increasing
energy efficiency and reducing greenhouse gas emissions of its
railroad operations.

(d) Competitive Grant Selection Process.--
(1) Applications.--A railroad carrier or State or local
government seeking a grant under this section shall submit for
approval by the Secretary of Transportation an application

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121 STAT. 1758

for the grant containing such information as the Secretary of
Transportation may require.
(2) Competitive selection.--The Secretary of Transportation
shall conduct a national solicitation for applications for
grants under this section and shall select grantees on a
competitive basis.

(e) Federal Share.--The Federal share of the cost of a project under
this section shall not exceed 80 percent of the project cost.
(f) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Transportation shall submit to Congress a
report on the results of the pilot program carried out under this
section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Transportation $10,000,000 for each of
the fiscal years 2008 through 2011 to carry out this section. Such funds
shall remain available until expended.

SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.

(a) Amendment.--Chapter 223 of title 49, United States Code, is
amended to read as follows:

``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS

``Sec.
``22301. Capital grants for class II and class III railroads.

``Sec. 22301. Capital grants for class II and class III railroads

``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation shall
establish a program for making capital grants to class II and
class III railroads. Such grants shall be for projects in the
public interest that--
``(A)(i) rehabilitate, preserve, or improve railroad
track (including roadbed, bridges, and related track
structures) used primarily for freight transportation;
``(ii) facilitate the continued or greater use of
railroad transportation for freight shipments; and
``(iii) reduce the use of less fuel efficient modes
of transportation in the transportation of such
shipments; and
``(B) demonstrate innovative technologies and
advanced research and development that increase fuel
economy, reduce greenhouse gas emissions, and lower the
costs of operation.
``(2) Provision of grants.--Grants may be provided under
this chapter--
``(A) directly to the class II or class III
railroad; or
``(B) with the concurrence of the class II or class
III railroad, to a State or local government.
``(3) State cooperation.--Class II and class III railroad
applicants for a grant under this chapter are encouraged to
utilize the expertise and assistance of State transportation
agencies in applying for and administering such grants. State
transportation agencies are encouraged to provide such expertise
and assistance to such railroads.

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121 STAT. 1759

``(4) Regulations.--Not [NOTE: Deadline.  later than
October 1, 2008, the Secretary shall issue final regulations to
implement the program under this section.

``(b) Maximum Federal Share.--The maximum Federal share for carrying
out a project under this section shall be 80 percent of the project
cost. The non-Federal share may be provided by any non-Federal source in
cash, equipment, or supplies. Other in-kind contributions may be
approved by the Secretary on a case-by-case basis consistent with this
chapter.
``(c) Use of Funds.--Grants provided under this section shall be
used to implement track capital projects as soon as possible. In no
event shall grant funds be contractually obligated for a project later
than the end of the third Federal fiscal year following the year in
which the grant was awarded. Any funds not so obligated by the end of
such fiscal year shall be returned to the Secretary for reallocation.
``(d) Employee Protection.--The Secretary shall require as a
condition of any grant made under this section that the recipient
railroad provide a fair arrangement at least as protective of the
interests of employees who are affected by the project to be funded with
the grant as the terms imposed under section 11326(a), as in effect on
the date of the enactment of this chapter.
``(e) Labor Standards.--
``(1) Prevailing wages.--The Secretary shall ensure that
laborers and mechanics employed by contractors and
subcontractors in construction work financed by a grant made
under this section will be paid wages not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor under subchapter IV of
chapter 31 of title 40 (commonly known as the `Davis-Bacon
Act'). The Secretary shall make a grant under this section only
after being assured that required labor standards will be
maintained on the construction work.
``(2) Wage rates.--Wage rates in a collective bargaining
agreement negotiated under the Railway Labor Act (45 U.S.C. 151
et seq.) are deemed for purposes of this subsection to comply
with the subchapter IV of chapter 31 of title 40.

``(f) Study.--The Secretary shall conduct a study of the projects
carried out with grant assistance under this section to determine the
extent to which the program helps promote a reduction in fuel use
associated with the transportation of freight and demonstrates
innovative technologies that increase fuel economy, reduce greenhouse
gas emissions, and lower the costs of
operation. [NOTE: Deadline. Reports.  Not later than March 31, 2009,
the Secretary shall submit a report to the Committee on Transportation
and Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate on the study,
including any recommendations the Secretary considers appropriate
regarding the program.

``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $50,000,000 for each of fiscal years 2008
through 2011 for carrying out this section.''.
(b) Clerical Amendment.--The item relating to chapter 223 in the
table of chapters of subtitle V of title 49, United States Code, is
amended to read as follows:

``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS......22301''.

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121 STAT. 1760

Subtitle C--Marine Transportation

SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.

(a) In General.--Title 46, United States Code, is amended by adding
after chapter 555 the following:

``CHAPTER 556--SHORT SEA TRANSPORTATION

``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.

``Sec. 55601. Short sea transportation program

``(a) Establishment.--The Secretary of Transportation shall
establish a short sea transportation program and designate short sea
transportation projects to be conducted under the program to mitigate
landside congestion.
``(b) Program Elements.--The program shall encourage the use of
short sea transportation through the development and expansion of--
``(1) documented vessels;
``(2) shipper utilization;
``(3) port and landside infrastructure; and
``(4) marine transportation strategies by State and local
governments.

``(c) Short Sea Transportation Routes.--The [NOTE: Designation.
Secretary shall designate short sea transportation routes as extensions
of the surface transportation system to focus public and private efforts
to use the waterways to relieve landside congestion along coastal
corridors. The Secretary may collect and disseminate data for the
designation and delineation of short sea transportation routes.

``(d) Project Designation.--The Secretary may designate a project to
be a short sea transportation project if the Secretary determines that
the project may--
``(1) offer a waterborne alternative to available landside
transportation services using documented vessels; and
``(2) provide transportation services for passengers or
freight (or both) that may reduce congestion on landside
infrastructure using documented vessels.

``(e) Elements of Program.--For a short sea transportation project
designated under this section, the Secretary may--
``(1) promote the development of short sea transportation
services;
``(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and the
private sector and on the development of landside facilities and
infrastructure to support short sea transportation services; and
``(3) develop performance measures for the short sea
transportation program.

``(f) Multistate, State and Regional Transportation Planning.--The
Secretary, in consultation with Federal entities and State and local
governments, shall develop strategies to encourage the use of short sea
transportation for transportation of passengers and cargo. The Secretary
shall--

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121 STAT. 1761

``(1) assess the extent to which States and local
governments include short sea transportation and other marine
transportation solutions in their transportation planning;
``(2) encourage State departments of transportation to
develop strategies, where appropriate, to incorporate short sea
transportation, ferries, and other marine transportation
solutions for regional and interstate transport of freight and
passengers in their transportation planning; and
``(3) encourage groups of States and multi-State
transportation entities to determine how short sea
transportation can address congestion, bottlenecks, and other
interstate transportation challenges.

``Sec. 55602. Cargo and shippers

``(a) Memorandums of Agreement.--The Secretary of Transportation
shall enter into memorandums of understanding with the heads of other
Federal entities to transport federally owned or generated cargo using a
short sea transportation project designated under section 55601 when
practical or available.
``(b) Short-Term Incentives.--The Secretary shall consult shippers
and other participants in transportation logistics and develop proposals
for short-term incentives to encourage the use of short sea
transportation.

``Sec. 55603. [NOTE: Establishment.  Interagency coordination

``The Secretary of Transportation shall establish a board to
identify and seek solutions to impediments hindering effective use of
short sea transportation. The board shall include representatives of the
Environmental Protection Agency and other Federal, State, and local
governmental entities and private sector entities.

``Sec. 55604. Research on short sea transportation

``The Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, may conduct
research on short sea transportation, regarding--
``(1) the environmental and transportation benefits to be
derived from short sea transportation alternatives for other
forms of transportation;
``(2) technology, vessel design, and other improvements that
would reduce emissions, increase fuel economy, and lower costs
of short sea transportation and increase the efficiency of
intermodal transfers; and
``(3) solutions to impediments to short sea transportation
projects designated under section 55601.

``Sec. 55605. Short sea transportation defined

``In this chapter, the term `short sea transportation' means the
carriage by vessel of cargo--
``(1) that is--
``(A) contained in intermodal cargo containers and
loaded by crane on the vessel; or
``(B) loaded on the vessel by means of wheeled
technology; and
``(2) that is--
``(A) loaded at a port in the United States and
unloaded either at another port in the United States or
at a port

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121 STAT. 1762

in Canada located in the Great Lakes Saint Lawrence
Seaway System; or
``(B) loaded at a port in Canada located in the
Great Lakes Saint Lawrence Seaway System and unloaded at
a port in the United States.''.

(b) Clerical Amendment.--The table of chapters at the beginning of
subtitle V of such title is amended by inserting after the item relating
to chapter 555 the following:

``556. Short Sea Transportation.................................55601''.

(c) [NOTE: Deadlines. 46 USC 55601 note.  Regulations.--
(1) Interim regulations.--Not later than 90 days after the
date of enactment of this Act, the Secretary of Transportation
shall issue temporary regulations to implement the program under
this section. Subchapter II of chapter 5 of title 5, United
States Code, does not apply to a temporary regulation issued
under this paragraph or to an amendment to such a temporary
regulation.
(2) Final regulations.--Not later than October 1, 2008, the
Secretary of Transportation shall issue final regulations to
implement the program under this section.

SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION FUND.

(a) Definition of Qualified Vessel.--Section 53501 of title 46,
United States Code, is amended--
(1) in paragraph (5)(A)(iii) by striking ``or noncontiguous
domestic'' and inserting ``noncontiguous domestic, or short sea
transportation trade''; and
(2) by inserting after paragraph (6) the following:
``(7) Short sea transportation trade.--The term `short sea
transportation trade' means the carriage by vessel of cargo--
``(A) that is--
``(i) contained in intermodal cargo containers
and loaded by crane on the vessel; or
``(ii) loaded on the vessel by means of
wheeled technology; and
``(B) that is--
``(i) loaded at a port in the United States
and unloaded either at another port in the United
States or at a port in Canada located in the Great
Lakes Saint Lawrence Seaway System; or
``(ii) loaded at a port in Canada located in
the Great Lakes Saint Lawrence Seaway System and
unloaded at a port in the United States.''.

(b) Allowable Purpose.--Section 53503(b) of such title is amended by
striking ``or noncontiguous domestic trade'' and inserting
``noncontiguous domestic, or short sea transportation trade''.

SEC. 1123. SHORT SEA TRANSPORTATION REPORT.

Not later than 1 year after the date of enactment of this Act, the
Secretary of Transportation, in consultation with the Administrator of
the Environmental Protection Agency, shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Commerce, Science, and

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121 STAT. 1763

Transportation of the Senate a report on the short sea transportation
program established under the amendments made by section 1121. The
report shall include a description of the activities conducted under the
program, and any recommendations for further legislative or
administrative action that the Secretary of Transportation considers
appropriate.

Subtitle D--Highways

SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

Section 120(c) of title 23, United States Code, is amended--
(1) in the subsection heading by striking ``for Certain
Safety Projects'';
(2) by striking ``The Federal share'' and inserting the
following:
``(1) Certain safety projects.--The Federal share''; and
(3) by adding at the end the following:
``(2) CMAQ projects.--The Federal share payable on account
of a project or program carried out under section 149 with funds
obligated in fiscal year 2008 or 2009, or both, shall be not
less than 80 percent and, at the discretion of the State, may be
up to 100 percent of the cost thereof.''.

SEC. 1132. DISTRIBUTION OF RESCISSIONS.

(a) In General.--Any unobligated balances of amounts that are
appropriated from the Highway Trust Fund for a fiscal year, and
apportioned under chapter 1 of title 23, United States Code, before, on,
or after the date of enactment of this Act and that are rescinded in
fiscal year 2008 or fiscal year 2009 shall be distributed by the
Secretary of Transportation within each State (as defined in section 101
of such title) among all programs for which funds are apportioned under
such chapter for such fiscal year, to the extent sufficient funds remain
available for obligation, in the ratio that the amount of funds
apportioned for each program under such chapter for such fiscal year,
bears to the amount of funds apportioned for all such programs under
such chapter for such fiscal year.
(b) Adjustments.--A State may make adjustments to the distribution
of a rescission within the State for a fiscal year under subsection (a)
by transferring the amounts to be rescinded among the programs for which
funds are apportioned under chapter 1 of title 23, United States Code,
for such fiscal year, except that in making such adjustments the State
may not rescind from any such program more than 110 percent of the funds
to be rescinded from the program for the fiscal year as determined by
the Secretary of Transportation under subsection (a).
(c) Treatment of Transportation Enhancement Set-Aside and Funds
Suballocated to Substate Areas.--Funds set aside under sections
133(d)(2) and 133(d)(3) of title 23, United States Code, shall be
treated as being apportioned under chapter 1 of such title for purposes
of subsection (a).

SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN
TECHNIQUES.

It is the sense of Congress that in constructing new roadways or
rehabilitating existing facilities, State and local governments should
consider policies designed to accommodate all users,

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121 STAT. 1764

including motorists, pedestrians, cyclists, transit riders, and people
of all ages and abilities, in order to--
(1) serve all surface transportation users by creating a
more interconnected and intermodal system;
(2) create more viable transportation options; and
(3) facilitate the use of environmentally friendly options,
such as public transportation, walking, and bicycling.

TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.

Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) is
amended by adding at the end the following:
``(F) Express loans for renewable energy and energy
efficiency.--
``(i) Definitions.--In this subparagraph--
``(I) the term `biomass'--
``(aa) means any organic
material that is available on a
renewable or recurring basis,
including--
``(AA) agricultural
crops;
``(BB) trees grown for
energy production;
``(CC) wood waste and
wood residues;
``(DD) plants (including
aquatic plants and grasses);
``(EE) residues;
``(FF) fibers;
``(GG) animal wastes and
other waste materials; and
``(HH) fats, oils, and
greases (including recycled
fats, oils, and greases);
and
``(bb) does not include--
``(AA) paper that is
commonly recycled; or
``(BB) unsegregated
solid waste;
``(II) the term `energy efficiency
project' means the installation or
upgrading of equipment that results in a
significant reduction in energy usage;
and
``(III) the term `renewable energy
system' means a system of energy derived
from--
``(aa) a wind, solar,
biomass (including biodiesel),
or geothermal source; or
``(bb) hydrogen derived from
biomass or water using an energy
source described in item (aa).
``(ii) Loans.--The Administrator may make a
loan under the Express Loan Program for the
purpose of--
``(I) purchasing a renewable energy
system; or
``(II) carrying out an energy
efficiency project for a small business
concern.''.

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121 STAT. 1765

SEC. 1202. PILOT PROGRAM FOR REDUCED 7(a) FEES FOR PURCHASE OF ENERGY
EFFICIENT TECHNOLOGIES.

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended
by adding at the end the following:
``(32) Loans for energy efficient technologies.--
``(A) Definitions.--In this paragraph--
``(i) the term `cost' has the meaning given
that term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a);
``(ii) the term `covered energy efficiency
loan' means a loan--
``(I) made under this subsection;
and
``(II) the proceeds of which are
used to purchase energy efficient
designs, equipment, or fixtures, or to
reduce the energy consumption of the
borrower by 10 percent or more; and
``(iii) the term `pilot program' means the
pilot program established under subparagraph (B)
``(B) Establishment.--The Administrator shall
establish and carry out a pilot program under which the
Administrator shall reduce the fees for covered energy
efficiency loans.
``(C) Duration.--The pilot program shall terminate
at the end of the second full fiscal year after the date
that the Administrator establishes the pilot program.
``(D) Maximum participation.--A covered energy
efficiency loan shall include the maximum participation
levels by the Administrator permitted for loans made
under this subsection.
``(E) Fees.--
``(i) In general.--The fee on a covered energy
efficiency loan shall be equal to 50 percent of
the fee otherwise applicable to that loan under
paragraph (18).
``(ii) Waiver.--The Administrator may waive
clause (i) for a fiscal year if--
``(I) for the fiscal year before
that fiscal year, the annual rate of
default of covered energy efficiency
loans exceeds that of loans made under
this subsection that are not covered
energy efficiency loans;
``(II) the cost to the
Administration of making loans under
this subsection is greater than zero and
such cost is directly attributable to
the cost of making covered energy
efficiency loans; and
``(III) no additional sources of
revenue authority are available to
reduce the cost of making loans under
this subsection to zero.
``(iii) Effect of waiver.--If the
Administrator waives the reduction of fees under
clause (ii), the Administrator--
``(I) shall not assess or collect
fees in an amount greater than necessary
to ensure that the cost of the program
under this subsection is not greater
than zero; and

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121 STAT. 1766

``(II) shall reinstate the fee
reductions under clause (i) when the
conditions in clause (ii) no longer
apply.
``(iv) No increase of fees.--The Administrator
shall not increase the fees under paragraph (18)
on loans made under this subsection that are not
covered energy efficiency loans as a direct result
of the pilot program.
``(F) GAO report.--
``(i) In general.--Not later than 1 year after
the date that the pilot program terminates, the
Comptroller General of the United States shall
submit to the Committee on Small Business of the
House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate
a report on the pilot program.
``(ii) Contents.--The report submitted under
clause (i) shall include--
``(I) the number of covered energy
efficiency loans for which fees were
reduced under the pilot program;
``(II) a description of the energy
efficiency savings with the pilot
program;
``(III) a description of the impact
of the pilot program on the program
under this subsection;
``(IV) an evaluation of the efficacy
and potential fraud and abuse of the
pilot program; and
``(V) recommendations for improving
the pilot program.''.

SEC. 1203. [NOTE: 15 USC 657h.  SMALL BUSINESS ENERGY EFFICIENCY.

(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator thereof,
respectively;
(2) the term ``association'' means the association of small
business development centers established under section
21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A));
(3) the term ``disability'' has the meaning given that term
in section 3 of the Americans with Disabilities Act of 1990 (42
U.S.C. 12102);
(4) the term ``Efficiency Program'' means the Small Business
Energy Efficiency Program established under subsection (c)(1);
(5) the term ``electric utility'' has the meaning given that
term in section 3 of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2602);
(6) the term ``high performance green building'' has the
meaning given that term in section 401;
(7) the term ``on-bill financing'' means a low interest or
no interest financing agreement between a small business concern
and an electric utility for the purchase or installation of
equipment, under which the regularly scheduled payment of that
small business concern to that electric utility is not reduced
by the amount of the reduction in cost attributable to the new
equipment and that amount is credited to the

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121 STAT. 1767

electric utility, until the cost of the purchase or installation
is repaid;
(8) the term ``small business concern'' has the same meaning
as in section 3 of the Small Business Act (15 U.S.C. 632);
(9) the term ``small business development center'' means a
small business development center described in section 21 of the
Small Business Act (15 U.S.C. 648);
(10) the term ``telecommuting'' means the use of
telecommunications to perform work functions under circumstances
which reduce or eliminate the need to commute;
(11) the term ``Telecommuting Pilot Program'' means the
pilot program established under subsection (d)(1)(A); and
(12) the term ``veteran'' has the meaning given that term in
section 101 of title 38, United States Code.

(b) Implementation of Small Business Energy Efficiency Program.--
(1) In general.--Not [NOTE: Deadlines. Regulations.
later than 90 days after the date of enactment of this Act, the
Administrator shall promulgate final rules establishing the
Government-wide program authorized under subsection (d) of
section 337 of the Energy Policy and Conservation Act (42 U.S.C.
6307) that ensure compliance with that subsection by not later
than 6 months after such date of enactment.
(2) Program required.--The Administrator shall develop and
coordinate a Government-wide program, building on the Energy
Star for Small Business program, to assist small business
concerns in--
(A) becoming more energy efficient;
(B) understanding the cost savings from improved
energy efficiency; and
(C) identifying financing options for energy
efficiency upgrades.
(3) Consultation and cooperation.--The program required by
paragraph (2) shall be developed and coordinated--
(A) in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection
Agency; and
(B) in cooperation with any entities the
Administrator considers appropriate, such as industry
trade associations, industry members, and energy
efficiency organizations.
(4) Availability of information.--The Administrator shall
make available the information and materials developed under the
program required by paragraph (2) to--
(A) small business concerns, including smaller
design, engineering, and construction firms; and
(B) other Federal programs for energy efficiency,
such as the Energy Star for Small Business program.
(5) Strategy and report.--
(A) Strategy required.--The Administrator shall
develop a strategy to educate, encourage, and assist
small business concerns in adopting energy efficient
building fixtures and equipment.
(B) Report.--Not later than December 31, 2008, the
Administrator shall submit to Congress a report
containing a plan to implement the strategy developed
under subparagraph (A).

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121 STAT. 1768

(c) Small Business Sustainability Initiative.--
(1) Authority.--The Administrator shall establish a Small
Business Energy Efficiency Program to provide energy efficiency
assistance to small business concerns through small business
development centers.
(2) Small business development centers.--
(A) [NOTE: Contracts.  In general.--In carrying
out the Efficiency Program, the Administrator shall
enter into agreements with small business development
centers under which such centers shall--
(i) provide access to information and
resources on energy efficiency practices,
including on-bill financing options;
(ii) conduct training and educational
activities;
(iii) offer confidential, free, one-on-one,
in-depth energy audits to the owners and operators
of small business concerns regarding energy
efficiency practices;
(iv) give referrals to certified professionals
and other providers of energy efficiency
assistance who meet such standards for
educational, technical, and professional
competency as the Administrator shall establish;
(v) to the extent not inconsistent with
controlling State public utility regulations, act
as a facilitator between small business concerns,
electric utilities, lenders, and the
Administration to facilitate on-bill financing
arrangements;
(vi) provide necessary support to small
business concerns to--
(I) evaluate energy efficiency
opportunities and opportunities to
design or construct high performance
green buildings;
(II) evaluate renewable energy
sources, such as the use of solar and
small wind to supplement power
consumption;
(III) secure financing to achieve
energy efficiency or to design or
construct high performance green
buildings; and
(IV) implement energy efficiency
projects;
(vii) assist owners of small business concerns
with the development and commercialization of
clean technology products, goods, services, and
processes that use renewable energy sources,
dramatically reduce the use of natural resources,
and cut or eliminate greenhouse gas emissions
through--
(I) technology assessment;
(II) intellectual property;
(III) Small Business Innovation
Research submissions under section 9 of
the Small Business Act (15 U.S.C. 638);
(IV) strategic alliances;
(V) business model development; and
(VI) preparation for investors; and
(viii) help small business concerns improve
environmental performance by shifting to less
hazardous materials and reducing waste and
emissions, including by providing assistance for
small business

[[Page 1769]]
121 STAT. 1769

concerns to adapt the materials they use, the
processes they operate, and the products and
services they produce.
(B) Reports.--Each small business development center
participating in the Efficiency Program shall submit to
the Administrator and the Administrator of the
Environmental Protection Agency an annual report that
includes--
(i) a summary of the energy efficiency
assistance provided by that center under the
Efficiency Program;
(ii) the number of small business concerns
assisted by that center under the Efficiency
Program;
(iii) statistics on the total amount of energy
saved as a result of assistance provided by that
center under the Efficiency Program; and
(iv) any additional information determined
necessary by the Administrator, in consultation
with the association.
(C) Reports to congress.--Not later than 60 days
after the date on which all reports under subparagraph
(B) relating to a year are submitted, the Administrator
shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
summarizing the information regarding the Efficiency
Program submitted by small business development centers
participating in that program.
(3) Eligibility.--A small business development center shall
be eligible to participate in the Efficiency Program only if
that center is certified under section 21(k)(2) of the Small
Business Act (15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--From among
small business development centers submitting applications to
participate in the Efficiency Program, the Administrator--
(A) shall, to the maximum extent practicable, select
small business development centers in such a manner so
as to promote a nationwide distribution of centers
participating in the Efficiency Program; and
(B) may not select more than 1 small business
development center in a State to participate in the
Efficiency Program.
(5) [NOTE: Applicability.  Matching requirement.--
Subparagraphs (A) and (B) of section 21(a)(4) of the Small
Business Act (15 U.S.C. 648(a)(4)) shall apply to assistance
made available under the Efficiency Program.
(6) Grant amounts.--Each small business development center
selected to participate in the Efficiency Program under
paragraph (4) shall be eligible to receive a grant in an amount
equal to--
(A) not less than $100,000 in each fiscal year; and
(B) not more than $300,000 in each fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of
disbursement of the first grant under the Efficiency
Program, initiate an evaluation of that program; and

[[Page 1770]]
121 STAT. 1770

(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A),
submit to the Administrator, the Committee on Small
Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of
Representatives, a report containing--
(i) the results of the evaluation; and
(ii) any recommendations regarding whether the
Efficiency Program, with or without modification,
should be extended to include the participation of
all small business development centers.
(8) Guarantee.--To the extent not inconsistent with State
law, the Administrator may guarantee the timely payment of a
loan made to a small business concern through an on-bill
financing agreement on such terms and conditions as the
Administrator shall establish through a formal rulemaking, after
providing notice and an opportunity for comment.
(9) Implementation.--Subject to amounts approved in advance
in appropriations Acts and separate from amounts approved to
carry out section 21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)), the Administrator may make grants or enter into
cooperative agreements to carry out this subsection.
(10) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to make grants and
enter into cooperative agreements to carry out this subsection.
(11) Termination.--The authority under this subsection shall
terminate 4 years after the date of disbursement of the first
grant under the Efficiency Program.

(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--The Administrator shall conduct, in
not more than 5 of the regions of the Administration, a
pilot program to provide information regarding
telecommuting to employers that are small business
concerns and to encourage such employers to offer
telecommuting options to employees.
(B) Special outreach to individuals with
disabilities.--In carrying out the Telecommuting Pilot
Program, the Administrator shall make a concerted effort
to provide information to--
(i) small business concerns owned by or
employing individuals with disabilities,
particularly veterans who are individuals with
disabilities;
(ii) Federal, State, and local agencies having
knowledge and expertise in assisting individuals
with disabilities, including veterans who are
individuals with disabilities; and
(iii) any group or organization, the primary
purpose of which is to aid individuals with
disabilities or veterans who are individuals with
disabilities.
(C) Permissible activities.--In carrying out the
Telecommuting Pilot Program, the Administrator may--
(i) produce educational materials and conduct
presentations designed to raise awareness in the
small

[[Page 1771]]
121 STAT. 1771

business community of the benefits and the ease of
telecommuting;
(ii) conduct outreach--
(I) to small business concerns that
are considering offering telecommuting
options; and
(II) as provided in subparagraph
(B); and
(iii) acquire telecommuting technologies and
equipment to be used for demonstration purposes.
(D) Selection of regions.--In determining which
regions will participate in the Telecommuting Pilot
Program, the Administrator shall give priority
consideration to regions in which Federal agencies and
private-sector employers have demonstrated a strong
regional commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after the
date on which funds are first appropriated to carry out this
subsection, the Administrator shall transmit to the Committee on
Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a
report containing the results of an evaluation of the
Telecommuting Pilot Program and any recommendations regarding
whether the pilot program, with or without modification, should
be extended to include the participation of all regions of the
Administration.
(3) Termination.--The Telecommuting Pilot Program shall
terminate 4 years after the date on which funds are first
appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is authorized to
be appropriated to the Administration $5,000,000 to carry out
this subsection.

(e) Encouraging Innovation in Energy Efficiency.--Section 9 of the
Small Business Act (15 U.S.C. 638) is amended by adding at the end the
following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In carrying
out its duties under this section relating to SBIR and STTR
solicitations by Federal departments and agencies, the
Administrator shall--
``(A) ensure that such departments and agencies give
high priority to small business concerns that
participate in or conduct energy efficiency or renewable
energy system research and development projects; and
``(B) include in the annual report to Congress under
subsection (b)(7) a determination of whether the
priority described in subparagraph (A) is being carried
out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal departments and agencies
in determining whether priority has been given to small business
concerns that participate in or conduct energy efficiency or
renewable energy system research and development projects, as
required by this subsection.
``(3) Guidelines.--The Administrator shall, as soon as is
practicable after the date of enactment of this subsection,
issue guidelines and directives to assist Federal agencies in
meeting the requirements of this subsection.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--

[[Page 1772]]
121 STAT. 1772

``(i) means any organic material that is
available on a renewable or recurring basis,
including--
``(I) agricultural crops;
``(II) trees grown for energy
production;
``(III) wood waste and wood
residues;
``(IV) plants (including aquatic
plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and other
waste materials; and
``(VIII) fats, oils, and greases
(including recycled fats, oils, and
greases); and
``(ii) does not include--
``(I) paper that is commonly
recycled; or
``(II) unsegregated solid waste;
``(B) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(C) the term `renewable energy system' means a
system of energy derived from--
``(i) a wind, solar, biomass (including
biodiesel), or geothermal source; or
``(ii) hydrogen derived from biomass or water
using an energy source described in clause (i).''.

SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY
EFFICIENT TECHNOLOGIES AND PURCHASES.

(a) Eligibility for Energy Efficiency Projects.--Section 501(d)(3)
of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is
amended--
(1) in subparagraph (G) by striking ``or'' at the end;
(2) in subparagraph (H) by striking the period at the end
and inserting a comma;
(3) by inserting after subparagraph (H) the following:
``(I) reduction of energy consumption by at least 10
percent,
``(J) increased use of sustainable design, including
designs that reduce the use of greenhouse gas emitting
fossil fuels, or low-impact design to produce buildings
that reduce the use of non-renewable resources and
minimize environmental impact, or
``(K) plant, equipment and process upgrades of
renewable energy sources such as the small-scale
production of energy for individual buildings or
communities consumption, commonly known as micropower,
or renewable fuels producers including biodiesel and
ethanol producers.''; and
(4) by adding at the end the following: ``In subparagraphs
(J) and (K), terms have the meanings given those terms under the
Leadership in Energy and Environmental Design (LEED) standard
for green building certification, as determined by the
Administrator.''.

(b) Loans for Plant Projects Used for Energy-Efficient Purposes.--
Section 502(2)(A) of the Small Business Investment Act of 1958 (15
U.S.C. 696(2)(A)) is amended--
(1) in clause (ii) by striking ``and'' at the end;

[[Page 1773]]
121 STAT. 1773

(2) in clause (iii) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(iv) $4,000,000 for each project that
reduces the borrower's energy consumption by at
least 10 percent; and
``(v) $4,000,000 for each project that
generates renewable energy or renewable fuels,
such as biodiesel or ethanol production.''.

SEC. 1205. ENERGY SAVING DEBENTURES.

(a) In General.--Section 303 of the Small Business Investment Act of
1958 (15 U.S.C. 683) is amended by adding at the end the following:
``(k) Energy Saving Debentures.--In addition to any other authority
under this Act, a small business investment company licensed in the
first fiscal year after the date of enactment of this subsection or any
fiscal year thereafter may issue Energy Saving debentures.''.
(b) Definitions.--Section 103 of the Small Business Investment Act
of 1958 (15 U.S.C. 662) is amended--
(1) in paragraph (16), by striking ``and'' at the end;
(2) in paragraph (17), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(18) the term `Energy Saving debenture' means a deferred
interest debenture that--
``(A) is issued at a discount;
``(B) has a 5-year maturity or a 10-year maturity;
``(C) requires no interest payment or annual charge
for the first 5 years;
``(D) is restricted to Energy Saving qualified
investments; and
``(E) is issued at no cost (as defined in section
502 of the Credit Reform Act of 1990) with respect to
purchasing and guaranteeing the debenture; and
``(19) the term `Energy Saving qualified investment' means
investment in a small business concern that is primarily engaged
in researching, manufacturing, developing, or providing
products, goods, or services that reduce the use or consumption
of non-renewable energy resources.''.

SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

(a) Maximum Leverage.--Section 303(b)(2) of the Small Business
Investment Act of 1958 [NOTE: 15 USC 683.  (15 U.S.C. 303(b)(2)) is
amended by adding at the end the following:
``(D) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause (ii), in
calculating the outstanding leverage of a company
for purposes of subparagraph (A), the
Administrator shall exclude the amount of the cost
basis of any Energy Saving qualified investment in
a smaller enterprise made in the first fiscal year
after the date of enactment of this subparagraph
or any fiscal year thereafter by a company
licensed in the applicable fiscal year.
``(ii) Limitations.--

[[Page 1774]]
121 STAT. 1774

``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an Energy Saving
qualified investment in any one entity
in an amount equal to more than 20
percent of the private capital of that
company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.''.

(b) Maximum Aggregate Amount of Leverage.--Section 303(b)(4) of the
Small Business Investment Act of 1958 [NOTE: 15 USC 683.  (15 U.S.C.
303(b)(4)) is amended by adding at the end the following:
``(E) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause (ii), in
calculating the aggregate outstanding leverage of
a company for purposes of subparagraph (A), the
Administrator shall exclude the amount of the cost
basis of any Energy Saving qualified investment in
a smaller enterprise made in the first fiscal year
after the date of enactment of this subparagraph
or any fiscal year thereafter by a company
licensed in the applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an Energy Saving
qualified investment in any one entity
in an amount equal to more than 20
percent of the private capital of that
company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.''.

SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.

Title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:

``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM

``SEC. 381. [NOTE: 15 USC 690.  DEFINITIONS.

``In this part:

[[Page 1775]]
121 STAT. 1775

``(1) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists a small business concern with business
development.
``(2) Participation agreement.--The term `participation
agreement' means an agreement, between the Administrator and a
company granted final approval under section 384(e), that--
``(A) details the operating plan and investment
criteria of the company; and
``(B) requires the company to make investments in
smaller enterprises primarily engaged in researching,
manufacturing, developing, producing, or bringing to
market goods, products, or services that generate or
support the production of renewable energy.
``(3) Renewable energy.--The term `renewable energy' means
energy derived from resources that are regenerative or that
cannot be depleted, including solar, wind, ethanol, and
biodiesel fuels.
``(4) Renewable fuel capital investment company.--The term
`Renewable Fuel Capital Investment company' means a company--
``(A) that--
``(i) has been granted final approval by the
Administrator under section 384(e); and
``(ii) has entered into a participation
agreement with the Administrator; or
``(B) that has received conditional approval under
section 384(c).
``(5) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and any other commonwealth,
territory, or possession of the United States.
``(6) Venture capital.--The term `venture capital' means
capital in the form of equity capital investments, as that term
is defined in section 303(g)(4).

``SEC. 382. [NOTE: 15 USC 690a.  PURPOSES.

``The purposes of the Renewable Fuel Capital Investment Program
established under this part are--
``(1) to promote the research, development, manufacture,
production, and bringing to market of goods, products, or
services that generate or support the production of renewable
energy by encouraging venture capital investments in smaller
enterprises primarily engaged such activities; and
``(2) to establish a venture capital program, with the
mission of addressing the unmet equity investment needs of
smaller enterprises engaged in researching, developing,
manufacturing, producing, and bringing to market goods,
products, or services that generate or support the production of
renewable energy, to be administered by the Administrator--
``(A) to enter into participation agreements with
Renewable Fuel Capital Investment companies;
``(B) to guarantee debentures of Renewable Fuel
Capital Investment companies to enable each such company
to make venture capital investments in smaller
enterprises

[[Page 1776]]
121 STAT. 1776

engaged in the research, development, manufacture,
production, and bringing to market of goods, products,
or services that generate or support the production of
renewable energy; and
``(C) to make grants to Renewable Fuel Investment
Capital companies, and to other entities, for the
purpose of providing operational assistance to smaller
enterprises financed, or expected to be financed, by
such companies.

``SEC. 383. [NOTE: 15 USC 690b.  ESTABLISHMENT.

``The Administrator shall establish a Renewable Fuel Capital
Investment Program, under which the Administrator may--
``(1) enter into participation agreements for the purposes
described in section 382; and
``(2) guarantee the debentures issued by Renewable Fuel
Capital Investment companies as provided in section 385.

``SEC. 384. [NOTE: 15 USC 690c.  SELECTION OF RENEWABLE FUEL CAPITAL
INVESTMENT COMPANIES.

``(a) Eligibility.--A company is eligible to apply to be designated
as a Renewable Fuel Capital Investment company if the company--
``(1) is a newly formed for-profit entity or a newly formed
for-profit subsidiary of an existing entity;
``(2) has a management team with experience in alternative
energy financing or relevant venture capital financing; and
``(3) has a primary objective of investment in smaller
enterprises that research, manufacture, develop, produce, or
bring to market goods, products, or services that generate or
support the production of renewable energy.

``(b) Application.--A company desiring to be designated as a
Renewable Fuel Capital Investment company shall submit an application to
the Administrator that includes--
``(1) a business plan describing how the company intends to
make successful venture capital investments in smaller
enterprises primarily engaged in the research, manufacture,
development, production, or bringing to market of goods,
products, or services that generate or support the production of
renewable energy;
``(2) information regarding the relevant venture capital
qualifications and general reputation of the management of the
company;
``(3) a description of how the company intends to seek to
address the unmet capital needs of the smaller enterprises
served;
``(4) a proposal describing how the company intends to use
the grant funds provided under this part to provide operational
assistance to smaller enterprises financed by the company,
including information regarding whether the company has
employees with appropriate professional licenses or will
contract with another entity when the services of such an
individual are necessary;
``(5) with respect to binding commitments to be made to the
company under this part, an estimate of the ratio of cash to in-
kind contributions;
``(6) a description of whether and to what extent the
company meets the criteria under subsection (c)(2) and the
objectives of the program established under this part;

[[Page 1777]]
121 STAT. 1777

``(7) information regarding the management and financial
strength of any parent firm, affiliated firm, or any other firm
essential to the success of the business plan of the company;
and
``(8) such other information as the Administrator may
require.

``(c) Conditional Approval.--
``(1) In general.--From among companies submitting
applications under subsection (b), the Administrator shall
conditionally approve companies to operate as Renewable Fuel
Capital Investment companies.
``(2) Selection criteria.--In conditionally approving
companies under paragraph (1), the Administrator shall
consider--
``(A) the likelihood that the company will meet the
goal of its business plan;
``(B) the experience and background of the
management team of the company;
``(C) the need for venture capital investments in
the geographic areas in which the company intends to
invest;
``(D) the extent to which the company will
concentrate its activities on serving the geographic
areas in which it intends to invest;
``(E) the likelihood that the company will be able
to satisfy the conditions under subsection (d);
``(F) the extent to which the activities proposed by
the company will expand economic opportunities in the
geographic areas in which the company intends to invest;
``(G) the strength of the proposal by the company to
provide operational assistance under this part as the
proposal relates to the ability of the company to meet
applicable cash requirements and properly use in-kind
contributions, including the use of resources for the
services of licensed professionals, when necessary,
whether provided by employees or contractors; and
``(H) any other factor determined appropriate by the
Administrator.
``(3) Nationwide distribution.--From among companies
submitting applications under subsection (b), the Administrator
shall consider the selection criteria under paragraph (2) and
shall, to the maximum extent practicable, approve at least one
company from each geographic region of the Administration.

``(d) Requirements To Be Met for Final Approval.--
``(1) In general.--The Administrator shall grant each
conditionally approved company 2 years to satisfy the
requirements of this subsection.
``(2) Capital requirement.--Each conditionally approved
company shall raise not less than $3,000,000 of private capital
or binding capital commitments from 1 or more investors (which
shall not be departments or agencies of the Federal Government)
who meet criteria established by the Administrator.
``(3) Nonadministration resources for operational
assistance.--
``(A) In general.--In order to provide operational
assistance to smaller enterprises expected to be
financed by the company, each conditionally approved
company shall

[[Page 1778]]
121 STAT. 1778

have binding commitments (for contribution in cash or
in-kind)--
``(i) from sources other than the
Administration that meet criteria established by
the Administrator; and
``(ii) payable or available over a multiyear
period determined appropriate by the Administrator
(not to exceed 10 years).
``(B) Exception.--The Administrator may, in the
discretion of the Administrator and based upon a showing
of special circumstances and good cause, consider an
applicant to have satisfied the requirements of
subparagraph (A) if the applicant has--
``(i) a viable plan that reasonably projects
the capacity of the applicant to raise the amount
(in cash or in-kind) required under subparagraph
(A); and
``(ii) binding commitments in an amount equal
to not less than 20 percent of the total amount
required under paragraph (A).
``(C) Limitation.--The total amount of a in-kind
contributions by a company shall be not more than 50
percent of the total contributions by a company.

``(e) Final Approval; Designation.--The Administrator shall, with
respect to each applicant conditionally approved under subsection (c)--
``(1) grant final approval to the applicant to operate as a
Renewable Fuel Capital Investment company under this part and
designate the applicant as such a company, if the applicant--
``(A) satisfies the requirements of subsection (d)
on or before the expiration of the time period described
in that subsection; and
``(B) enters into a participation agreement with the
Administrator; or
``(2) if the applicant fails to satisfy the requirements of
subsection (d) on or before the expiration of the time period
described in paragraph (1) of that subsection, revoke the
conditional approval granted under that subsection.

``SEC. 385. [NOTE: 15 USC 690d.  DEBENTURES.

``(a) In General.--The Administrator may guarantee the timely
payment of principal and interest, as scheduled, on debentures issued by
any Renewable Fuel Capital Investment company.
``(b) Terms and Conditions.--The Administrator may make guarantees
under this section on such terms and conditions as it determines
appropriate, except that--
``(1) the term of any debenture guaranteed under this
section shall not exceed 15 years; and
``(2) a debenture guaranteed under this section--
``(A) shall carry no front-end or annual fees;
``(B) shall be issued at a discount;
``(C) shall require no interest payments during the
5-year period beginning on the date the debenture is
issued;
``(D) shall be prepayable without penalty after the
end of the 1-year period beginning on the date the
debenture is issued; and

[[Page 1779]]
121 STAT. 1779

``(E) shall require semiannual interest payments
after the period described in subparagraph (C).

``(c) Full Faith and Credit of the United States.--The full faith
and credit of the United States is pledged to pay all amounts that may
be required to be paid under any guarantee under this part.
``(d) Maximum Guarantee.--
``(1) In general.--Under this section, the Administrator may
guarantee the debentures issued by a Renewable Fuel Capital
Investment company only to the extent that the total face amount
of outstanding guaranteed debentures of such company does not
exceed 150 percent of the private capital of the company, as
determined by the Administrator.
``(2) Treatment of certain federal funds.--For the purposes
of paragraph (1), private capital shall include capital that is
considered to be Federal funds, if such capital is contributed
by an investor other than a department or agency of the Federal
Government.

``SEC. 386. [NOTE: 15 USC 690e.  ISSUANCE AND GUARANTEE OF TRUST
CERTIFICATES.

``(a) Issuance.--The Administrator may issue trust certificates
representing ownership of all or a fractional part of debentures issued
by a Renewable Fuel Capital Investment company and guaranteed by the
Administrator under this part, if such certificates are based on and
backed by a trust or pool approved by the Administrator and composed
solely of guaranteed debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under such terms
and conditions as it determines appropriate, guarantee the
timely payment of the principal of and interest on trust
certificates issued by the Administrator or its agents for
purposes of this section.
``(2) Limitation.--Each guarantee under this subsection
shall be limited to the extent of principal and interest on the
guaranteed debentures that compose the trust or pool.
``(3) Prepayment or default.--If a debenture in a trust or
pool is prepaid, or in the event of default of such a debenture,
the guarantee of timely payment of principal and interest on the
trust certificates shall be reduced in proportion to the amount
of principal and interest such prepaid debenture represents in
the trust or pool. Interest on prepaid or defaulted debentures
shall accrue and be guaranteed by the Administrator only through
the date of payment of the guarantee. At any time during its
term, a trust certificate may be called for redemption due to
prepayment or default of all debentures.

``(c) Full Faith and Credit of the United States.--The full faith
and credit of the United States is pledged to pay all amounts that may
be required to be paid under any guarantee of a trust certificate issued
by the Administrator or its agents under this section.
``(d) Fees.--The Administrator shall not collect a fee for any
guarantee of a trust certificate under this section, but any agent of
the Administrator may collect a fee approved by the Administrator for
the functions described in subsection (f)(2).
``(e) Subrogation and Ownership Rights.--

[[Page 1780]]
121 STAT. 1780

``(1) Subrogation.--If the Administrator pays a claim under
a guarantee issued under this section, it shall be subrogated
fully to the rights satisfied by such payment.
``(2) Ownership rights.--No Federal, State, or local law
shall preclude or limit the exercise by the Administrator of its
ownership rights in the debentures residing in a trust or pool
against which trust certificates are issued under this section.

``(f) Management and Administration.--
``(1) Registration.--The Administrator may provide for a
central registration of all trust certificates issued under this
section.
``(2) Contracting of functions.--
``(A) In general.--The Administrator may contract
with an agent or agents to carry out on behalf of the
Administrator the pooling and the central registration
functions provided for in this section, including, not
withstanding any other provision of law--
``(i) maintenance, on behalf of and under the
direction of the Administrator, of such commercial
bank accounts or investments in obligations of the
United States as may be necessary to facilitate
the creation of trusts or pools backed by
debentures guaranteed under this part; and
``(ii) the issuance of trust certificates to
facilitate the creation of such trusts or pools.
``(B) Fidelity bond or insurance requirement.--Any
agent performing functions on behalf of the
Administrator under this paragraph shall provide a
fidelity bond or insurance in such amounts as the
Administrator determines to be necessary to fully
protect the interests of the United States.
``(3) Regulation of brokers and dealers.--The Administrator
may regulate brokers and dealers in trust certificates issued
under this section.
``(4) Electronic registration.--Nothing in this subsection
may be construed to prohibit the use of a book-entry or other
electronic form of registration for trust certificates issued
under this section.

``SEC. 387. [NOTE: 15 USC 690f.  FEES.

``(a) In General.--Except as provided in section 386(d), the
Administrator may charge such fees as it determines appropriate with
respect to any guarantee or grant issued under this part, in an amount
established annually by the Administrator, as necessary to reduce to
zero the cost (as defined in section 502 of the Federal Credit Reform
Act of 1990) to the Administration of purchasing and guaranteeing
debentures under this part, which amounts shall be paid to and retained
by the Administration.
``(b) Offset.--The Administrator may, as provided by section 388,
offset fees charged and collected under subsection (a).

``SEC. 388. [NOTE: 15 USC 690g.  FEE CONTRIBUTION.

``(a) In General.--To the extent that amounts are made available to
the Administrator for the purpose of fee contributions, the
Administrator shall contribute to fees paid by the Renewable Fuel
Capital Investment companies under section 387.

[[Page 1781]]
121 STAT. 1781

``(b) [NOTE: Effective date.  Annual Adjustment.--Each fee
contribution under subsection (a) shall be effective for 1 fiscal year
and shall be adjusted as necessary for each fiscal year thereafter to
ensure that amounts under subsection (a) are fully used. The fee
contribution for a fiscal year shall be based on the outstanding
commitments made and the guarantees and grants that the Administrator
projects will be made during that fiscal year, given the program level
authorized by law for that fiscal year and any other factors that the
Administrator determines appropriate.

``SEC. 389. [NOTE: 15 USC 690h.  OPERATIONAL ASSISTANCE GRANTS.

``(a) In General.--
``(1) Authority.--The Administrator may make grants to
Renewable Fuel Capital Investment companies to provide
operational assistance to smaller enterprises financed, or
expected to be financed, by such companies or other entities.
``(2) Terms.--A grant under this subsection shall be made
over a multiyear period not to exceed 10 years, under such other
terms as the Administrator may require.
``(3) Grant amount.--The amount of a grant made under this
subsection to a Renewable Fuel Capital Investment company shall
be equal to the lesser of--
``(A) 10 percent of the resources (in cash or in-
kind) raised by the company under section 384(d)(2); or
``(B) $1,000,000.
``(4) Pro rata reductions.--If the amount made available to
carry out this section is insufficient for the Administrator to
provide grants in the amounts provided for in paragraph (3), the
Administrator shall make pro rata reductions in the amounts
otherwise payable to each company and entity under such
paragraph.
``(5) Grants to conditionally approved companies.--
``(A) In general.--Subject to subparagraphs (B) and
(C), upon the request of a company conditionally
approved under section 384(c), the Administrator shall
make a grant to the company under this subsection.
``(B) Repayment by companies not approved.--If a
company receives a grant under this paragraph and does
not enter into a participation agreement for final
approval, the company shall, subject to controlling
Federal law, repay the amount of the grant to the
Administrator.
``(C) Deduction of grant to approved company.--If a
company receives a grant under this paragraph and
receives final approval under section 384(e), the
Administrator shall deduct the amount of the grant from
the total grant amount the company receives for
operational assistance.
``(D) Amount of grant.--No company may receive a
grant of more than $100,000 under this paragraph.

``(b) Supplemental Grants.--
``(1) In general.--The Administrator may make supplemental
grants to Renewable Fuel Capital Investment companies and to
other entities, as authorized by this part, under such terms as
the Administrator may require, to provide additional operational
assistance to smaller enterprises financed, or expected to be
financed, by the companies.

[[Page 1782]]
121 STAT. 1782

``(2) Matching requirement.--The Administrator may require,
as a condition of any supplemental grant made under this
subsection, that the company or entity receiving the grant
provide from resources (in a cash or in kind), other then those
provided by the Administrator, a matching contribution equal to
the amount of the supplemental grant.

``(c) Limitation.--None of the assistance made available under this
section may be used for any overhead or general and administrative
expense of a Renewable Fuel Capital Investment company.

``SEC. 390. [NOTE: 15 USC 690i.  BANK PARTICIPATION.

``(a) In General.--Except as provided in subsection (b), any
national bank, any member bank of the Federal Reserve System, and (to
the extent permitted under applicable State law) any insured bank that
is not a member of such system, may invest in any Renewable Fuel Capital
Investment company, or in any entity established to invest solely in
Renewable Fuel Capital Investment companies.
``(b) Limitation.--No bank described in subsection (a) may make
investments described in such subsection that are greater than 5 percent
of the capital and surplus of the bank.

``SEC. 391. [NOTE: 15 USC 690j.  FEDERAL FINANCING BANK.

``Notwithstanding section 318, the Federal Financing Bank may
acquire a debenture issued by a Renewable Fuel Capital Investment
company under this part.

``SEC. 392. [NOTE: 15 USC 690k.  REPORTING REQUIREMENT.

``Each Renewable Fuel Capital Investment company that participates
in the program established under this part shall provide to the
Administrator such information as the Administrator may require,
including--
``(1) information related to the measurement criteria that
the company proposed in its program application; and
``(2) in each case in which the company makes, under this
part, an investment in, or a loan or a grant to, a business that
is not primarily engaged in the research, development,
manufacture, or bringing to market or renewable energy sources,
a report on the nature, origin, and revenues of the business in
which investments are made.

``SEC. 393. [NOTE: 15 USC 690l.  EXAMINATIONS.

``(a) In General.--Each Renewable Fuel Capital Investment company
that participates in the program established under this part shall be
subject to examinations made at the direction of the Investment Division
of the Administration in accordance with this section.
``(b) Assistance of Private Sector Entities.--Examinations under
this section may be conducted with the assistance of a private sector
entity that has both the qualifications and the expertise necessary to
conduct such examinations.
``(c) Costs.--
``(1) Assessment.--
``(A) In general.--The Administrator may assess the
cost of examinations under this section, including
compensation of the examiners, against the company
examined.

[[Page 1783]]
121 STAT. 1783

``(B) Payment.--Any company against which the
Administrator assesses costs under this paragraph shall
pay such costs.
``(2) Deposit of funds.--Funds collected under this section
shall be deposited in the account for salaries and expenses of
the Administration.

``SEC. 394. [NOTE: 15 USC 690m.  MISCELLANEOUS.

``To the extent such procedures are not inconsistent with the
requirements of this part, the Administrator may take such action as set
forth in sections 309, 311, 312, and 314 and an officer, director,
employee, agent, or other participant in the management or conduct of
the affairs of a Renewable Fuel Capital Investment company shall be
subject to the requirements of such sections.

``SEC. 395. [NOTE: 15 USC 690n.  REMOVAL OR SUSPENSION OF DIRECTORS
OR OFFICERS.

``Using the procedures for removing or suspending a director or an
officer of a licensee set forth in section 313 (to the extent such
procedures are not inconsistent with the requirements of this part), the
Administrator may remove or suspend any director or officer of any
Renewable Fuel Capital Investment company.

``SEC. 396. [NOTE: 15 USC 690o.  REGULATIONS.

``The Administrator may issue such regulations as the Administrator
determines necessary to carry out the provisions of this part in
accordance with its purposes.

``SEC. 397. [NOTE: 15 USC 690p.  AUTHORIZATIONS OF APPROPRIATIONS.

``(a) In General.--Subject to the availability of appropriations,
the Administrator is authorized to make $15,000,000 in operational
assistance grants under section 389 for each of fiscal years 2008 and
2009.
``(b) Funds Collected for Examinations.--Funds deposited under
section 393(c)(2) are authorized to be appropriated only for the costs
of examinations under section 393 and for the costs of other oversight
activities with respect to the program established under this part.

``SEC. 398. [NOTE: 15 USC 690q.  TERMINATION.

``The program under this part shall terminate at the end of the
second full fiscal year after the date that the Administrator
establishes the program under this part.''.

SEC. 1208. STUDY AND REPORT.

The Administrator of the Small Business Administration shall conduct
a study of the Renewable Fuel Capital Investment Program under part C of
title III of the Small Business Investment Act of 1958, as added by this
Act. Not later than 3 years after the date of enactment of this Act, the
Administrator shall complete the study under this section and submit to
Congress a report regarding the results of the study.

TITLE XIII--SMART GRID

SEC. 1301. [NOTE: 42 USC 17381.  STATEMENT OF POLICY ON MODERNIZATION
OF ELECTRICITY GRID.

It is the policy of the United States to support the modernization
of the Nation's electricity transmission and distribution system

[[Page 1784]]
121 STAT. 1784

to maintain a reliable and secure electricity infrastructure that can
meet future demand growth and to achieve each of the following, which
together characterize a Smart Grid:
(1) Increased use of digital information and controls
technology to improve reliability, security, and efficiency of
the electric grid.
(2) Dynamic optimization of grid operations and resources,
with full cyber-security.
(3) Deployment and integration of distributed resources and
generation, including renewable resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of ``smart'' technologies (real-time,
automated, interactive technologies that optimize the physical
operation of appliances and consumer devices) for metering,
communications concerning grid operations and status, and
distribution automation.
(6) Integration of ``smart'' appliances and consumer
devices.
(7) Deployment and integration of advanced electricity
storage and peak-shaving technologies, including plug-in
electric and hybrid electric vehicles, and thermal-storage air
conditioning.
(8) Provision to consumers of timely information and control
options.
(9) Development of standards for communication and
interoperability of appliances and equipment connected to the
electric grid, including the infrastructure serving the grid.
(10) Identification and lowering of unreasonable or
unnecessary barriers to adoption of smart grid technologies,
practices, and services.

SEC. 1302. [NOTE: 42 USC 17382.  SMART GRID SYSTEM REPORT.

The Secretary, acting through the Assistant Secretary of the Office
of Electricity Delivery and Energy Reliability (referred to in this
section as the ``OEDER'') and through the Smart Grid Task Force
established in section 1303, shall, after consulting with any interested
individual or entity as appropriate, no later than 1 year after
enactment, and every 2 years thereafter, report to Congress concerning
the status of smart grid deployments nationwide and any regulatory or
government barriers to continued deployment. The report shall provide
the current status and prospects of smart grid development, including
information on technology penetration, communications network
capabilities, costs, and obstacles. It may include recommendations for
State and Federal policies or actions helpful to facilitate the
transition to a smart grid. To the extent appropriate, it should take a
regional perspective. In preparing this report, the Secretary shall
solicit advice and contributions from the Smart Grid Advisory Committee
created in section 1303; from other involved Federal agencies including
but not limited to the Federal Energy Regulatory Commission
(``Commission''), the National Institute of Standards and Technology
(``Institute''), and the Department of Homeland Security; and from other
stakeholder groups not already represented on the Smart Grid Advisory
Committee.

SEC. 1303. [NOTE: 42 USC 17383.  SMART GRID ADVISORY COMMITTEE AND
SMART GRID TASK FORCE.

(a) Smart Grid Advisory Committee.--

[[Page 1785]]
121 STAT. 1785

(1) Establishment.--The [NOTE: Deadline.  Secretary shall
establish, within 90 days of enactment of this Part, a Smart
Grid Advisory Committee (either as an independent entity or as a
designated sub-part of a larger advisory committee on
electricity matters). The Smart Grid Advisory Committee shall
include eight or more members appointed by the Secretary who
have sufficient experience and expertise to represent the full
range of smart grid technologies and services, to represent both
private and non-Federal public sector stakeholders. One member
shall be appointed by the Secretary to Chair the Smart Grid
Advisory Committee.
(2) Mission.--The mission of the Smart Grid Advisory
Committee shall be to advise the Secretary, the Assistant
Secretary, and other relevant Federal officials concerning the
development of smart grid technologies, the progress of a
national transition to the use of smart-grid technologies and
services, the evolution of widely-accepted technical and
practical standards and protocols to allow interoperability and
inter-communication among smart-grid capable devices, and the
optimum means of using Federal incentive authority to encourage
such progress.
(3) Applicability of federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall apply to
the Smart Grid Advisory Committee.

(b) Smart Grid Task Force.--
(1) Establishment.--The [NOTE: Deadline.  Assistant
Secretary of the Office of Electricity Delivery and Energy
Reliability shall establish, within 90 days of enactment of this
Part, a Smart Grid Task Force composed of designated employees
from the various divisions of that office who have
responsibilities related to the transition to smart-grid
technologies and practices. The Assistant Secretary or his
designee shall be identified as the Director of the Smart Grid
Task Force. The Chairman of the Federal Energy Regulatory
Commission and the Director of the National Institute of
Standards and Technology shall each designate at least one
employee to participate on the Smart Grid Task Force. Other
members may come from other agencies at the invitation of the
Assistant Secretary or the nomination of the head of such other
agency. The Smart Grid Task Force shall, without disrupting the
work of the Divisions or Offices from which its members are
drawn, provide an identifiable Federal entity to embody the
Federal role in the national transition toward development and
use of smart grid technologies.
(2) Mission.--The mission of the Smart Grid Task Force shall
be to insure awareness, coordination and integration of the
diverse activities of the Office and elsewhere in the Federal
Government related to smart-grid technologies and practices,
including but not limited to: smart grid research and
development; development of widely accepted smart-grid standards
and protocols; the relationship of smart-grid technologies and
practices to electric utility regulation; the relationship of
smart-grid technologies and practices to infrastructure
development, system reliability and security; and the
relationship of smart-grid technologies and practices to other
facets of electricity supply, demand, transmission,
distribution, and policy. The Smart Grid Task Force shall
collaborate with the Smart Grid Advisory Committee and other
Federal agencies and offices.

[[Page 1786]]
121 STAT. 1786

The Smart Grid Task Force shall meet at the call of its Director
as necessary to accomplish its mission.

(c) Authorization.--There are authorized to be appropriated for the
purposes of this section such sums as are necessary to the Secretary to
support the operations of the Smart Grid Advisory Committee and Smart
Grid Task Force for each of fiscal years 2008 through 2020.

SEC. 1304. [NOTE: 42 USC 17384.  SMART GRID TECHNOLOGY RESEARCH,
DEVELOPMENT, AND DEMONSTRATION.

(a) Power Grid Digital Information Technology.--The Secretary, in
consultation with the Federal Energy Regulatory Commission and other
appropriate agencies, electric utilities, the States, and other
stakeholders, shall carry out a program--
(1) to develop advanced techniques for measuring peak load
reductions and energy-efficiency savings from smart metering,
demand response, distributed generation, and electricity storage
systems;
(2) to investigate means for demand response, distributed
generation, and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining,
visualization, advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies, including those
concerning communications network capabilities, in a grid
control room environment against a representative set of local
outage and wide area blackout scenarios;
(5) to identify communications network capacity needed to
implement advanced technologies.
(6) to investigate the feasibility of a transition to time-
of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric transmission
system software applications;
(8) to promote the use of underutilized electricity
generation capacity in any substitution of electricity for
liquid fuels in the transportation system of the United States;
and
(9) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable
electric utilities to access electricity stored in vehicles to
help meet peak demand loads.

(b) Smart Grid Regional Demonstration Initiative.--
(1) In general.--The Secretary shall establish a smart grid
regional demonstration initiative (referred to in this
subsection as the ``Initiative'') composed of demonstration
projects specifically focused on advanced technologies for use
in power grid sensing, communications, analysis, and power flow
control. The Secretary shall seek to leverage existing smart
grid deployments.
(2) Goals.--The goals of the Initiative shall be--
(A) to demonstrate the potential benefits of
concentrated investments in advanced grid technologies
on a regional grid;
(B) to facilitate the commercial transition from the
current power transmission and distribution system
technologies to advanced technologies;

[[Page 1787]]
121 STAT. 1787

(C) to facilitate the integration of advanced
technologies in existing electric networks to improve
system performance, power flow control, and reliability;
(D) to demonstrate protocols and standards that
allow for the measurement and validation of the energy
savings and fossil fuel emission reductions associated
with the installation and use of energy efficiency and
demand response technologies and practices; and
(E) to investigate differences in each region and
regulatory environment regarding best practices in
implementing smart grid technologies.
(3) Demonstration projects.--
(A) In general.--In carrying out the initiative, the
Secretary shall carry out smart grid demonstration
projects in up to 5 electricity control areas, including
rural areas and at least 1 area in which the majority of
generation and transmission assets are controlled by a
tax-exempt entity.
(B) Cooperation.--A demonstration project under
subparagraph (A) shall be carried out in cooperation
with the electric utility that owns the grid facilities
in the electricity control area in which the
demonstration project is carried out.
(C) Federal share of cost of technology
investments.--The Secretary shall provide to an electric
utility described in subparagraph (B) financial
assistance for use in paying an amount equal to not more
than 50 percent of the cost of qualifying advanced grid
technology investments made by the electric utility to
carry out a demonstration project.
(D) Ineligibility for grants.--No person or entity
participating in any demonstration project conducted
under this subsection shall be eligible for grants under
section 1306 for otherwise qualifying investments made
as part of that demonstration project.

(c) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012; and
(2) to carry out subsection (b), $100,000,000 for each of
fiscal years 2008 through 2012.

SEC. 1305. [NOTE: 42 USC 17385.  SMART GRID INTEROPERABILITY
FRAMEWORK.

(a) Interoperability Framework.--The Director of the National
Institute of Standards and Technology shall have primary responsibility
to coordinate the development of a framework that includes protocols and
model standards for information management to achieve interoperability
of smart grid devices and systems. Such protocols and standards shall
further align policy, business, and technology approaches in a manner
that would enable all electric resources, including demand-side
resources, to contribute to an efficient, reliable electricity network.
In developing such protocols and standards--
(1) the Director shall seek input and cooperation from the
Commission, OEDER and its Smart Grid Task Force, the Smart Grid
Advisory Committee, other relevant Federal and State agencies;
and

[[Page 1788]]
121 STAT. 1788

(2) the Director shall also solicit input and cooperation
from private entities interested in such protocols and
standards, including but not limited to the Gridwise
Architecture Council, the International Electrical and
Electronics Engineers, the National Electric Reliability
Organization recognized by the Federal Energy Regulatory
Commission, and National Electrical Manufacturer's Association.

(b) Scope of Framework.--The framework developed under subsection
(a) shall be flexible, uniform and technology neutral, including but not
limited to technologies for managing smart grid information, and
designed--
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation, energy
storage, energy efficiency, and demand response and enabling
devices and systems;
(2) to be flexible to incorporate--
(A) regional and organizational differences; and
(B) technological innovations;
(3) to consider the use of voluntary uniform standards for
certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers, at
their election and consistent with applicable State and Federal
laws, and are manufactured with the ability to respond to
electric grid emergencies and demand response signals by
curtailing all, or a portion of, the electrical power consumed
by the appliances or equipment in response to an emergency or
demand response signal, including through--
(A) load reduction to reduce total electrical
demand;
(B) adjustment of load to provide grid ancillary
services; and
(C) in the event of a reliability crisis that
threatens an outage, short-term load shedding to help
preserve the stability of the grid; and
(4) such voluntary standards should incorporate appropriate
manufacturer lead time.

(c) Timing of Framework Development.--The Institute shall begin work
pursuant to this section within 60 days of enactment. The Institute
shall provide and publish an initial report on progress toward
recommended or consensus standards and protocols within 1 year after
enactment, further reports at such times as developments warrant in the
judgment of the Institute, and a final report when the Institute
determines that the work is completed or that a Federal role is no
longer necessary.
(d) Standards for Interoperability in Federal Jurisdiction.--At any
time after the Institute's work has led to sufficient consensus in the
Commission's judgment, the Commission shall institute a rulemaking
proceeding to adopt such standards and protocols as may be necessary to
insure smart-grid functionality and interoperability in interstate
transmission of electric power, and regional and wholesale electricity
markets.
(e) Authorization.--There are authorized to be appropriated for the
purposes of this section $5,000,000 to the Institute to support the
activities required by this subsection for each of fiscal years 2008
through 2012.

[[Page 1789]]
121 STAT. 1789

SEC. 1306. [NOTE: 42 USC 17386.  FEDERAL MATCHING FUND FOR SMART GRID
INVESTMENT COSTS.

(a) Matching Fund.--The Secretary shall establish a Smart Grid
Investment Matching Grant Program to provide reimbursement of one-fifth
(20 percent) of qualifying Smart Grid investments.
(b) Qualifying Investments.--Qualifying Smart Grid investments may
include any of the following made on or after the date of enactment of
this Act:
(1) In the case of appliances covered for purposes of
establishing energy conservation standards under part B of title
III of the Energy Policy and Conservation Act of 1975 (42 U.S.C.
6291 et seq.), the documented expenditures incurred by a
manufacturer of such appliances associated with purchasing or
designing, creating the ability to manufacture, and
manufacturing and installing for one calendar year, internal
devices that allow the appliance to engage in Smart Grid
functions.
(2) In the case of specialized electricity-using equipment,
including motors and drivers, installed in industrial or
commercial applications, the documented expenditures incurred by
its owner or its manufacturer of installing devices or modifying
that equipment to engage in Smart Grid functions.
(3) In the case of transmission and distribution equipment
fitted with monitoring and communications devices to enable
smart grid functions, the documented expenditures incurred by
the electric utility to purchase and install such monitoring and
communications devices.
(4) In the case of metering devices, sensors, control
devices, and other devices integrated with and attached to an
electric utility system or retail distributor or marketer of
electricity that are capable of engaging in Smart Grid
functions, the documented expenditures incurred by the electric
utility, distributor, or marketer and its customers to purchase
and install such devices.
(5) In the case of software that enables devices or
computers to engage in Smart Grid functions, the documented
purchase costs of the software.
(6) In the case of entities that operate or coordinate
operations of regional electric grids, the documented
expenditures for purchasing and installing such equipment that
allows Smart Grid functions to operate and be combined or
coordinated among multiple electric utilities and between that
region and other regions.
(7) In the case of persons or entities other than electric
utilities owning and operating a distributed electricity
generator, the documented expenditures of enabling that
generator to be monitored, controlled, or otherwise integrated
into grid operations and electricity flows on the grid utilizing
Smart Grid functions.
(8) In the case of electric or hybrid-electric vehicles, the
documented expenses for devices that allow the vehicle to engage
in Smart Grid functions (but not the costs of electricity
storage for the vehicle).
(9) The documented expenditures related to purchasing and
implementing Smart Grid functions in such other cases as the
Secretary shall identify. In making such grants, the Secretary
shall seek to reward innovation and early adaptation,

[[Page 1790]]
121 STAT. 1790

even if success is not complete, rather than deployment of
proven and commercially viable technologies.

(c) Investments Not Included.--Qualifying Smart Grid investments do
not include any of the following:
(1) Investments or expenditures for Smart Grid technologies,
devices, or equipment that are eligible for specific tax credits
or deductions under the Internal Revenue Code, as amended.
(2) Expenditures for electricity generation, transmission,
or distribution infrastructure or equipment not directly related
to enabling Smart Grid functions.
(3) After the final date for State consideration of the
Smart Grid Information Standard under section 1307 (paragraph
(17) of section 111(d) of the Public Utility Regulatory Policies
Act of 1978), an investment that is not in compliance with such
standard.
(4) After the development and publication by the Institute
of protocols and model standards for interoperability of smart
grid devices and technologies, an investment that fails to
incorporate any of such protocols or model standards.
(5) Expenditures for physical interconnection of generators
or other devices to the grid except those that are directly
related to enabling Smart Grid functions.
(6) Expenditures for ongoing salaries, benefits, or
personnel costs not incurred in the initial installation,
training, or start up of smart grid functions.
(7) Expenditures for travel, lodging, meals or other
personal costs.
(8) Ongoing or routine operation, billing, customer
relations, security, and maintenance expenditures.
(9) Such other expenditures that the Secretary determines
not to be Qualifying Smart Grid Investments by reason of the
lack of the ability to perform Smart Grid functions or lack of
direct relationship to Smart Grid functions.

(d) Smart Grid Functions.--The term ``smart grid functions'' means
any of the following:
(1) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations, to or from or by means of
the electric utility system, through one or a combination of
devices and technologies.
(2) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations to or from a computer or
other control device.
(3) The ability to measure or monitor electricity use as a
function of time of day, power quality characteristics such as
voltage level, current, cycles per second, or source or type of
generation and to store, synthesize or report that information
by digital means.
(4) The ability to sense and localize disruptions or changes
in power flows on the grid and communicate such information
instantaneously and automatically for purposes of enabling
automatic protective responses to sustain reliability and
security of grid operations.

[[Page 1791]]
121 STAT. 1791

(5) The ability to detect, prevent, communicate with regard
to, respond to, or recover from system security threats,
including cyber-security threats and terrorism, using digital
information, media, and devices.
(6) The ability of any appliance or machine to respond to
such signals, measurements, or communications automatically or
in a manner programmed by its owner or operator without
independent human intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were
previously electro-mechanical or manual.
(8) The ability to use digital controls to manage and modify
electricity demand, enable congestion management, assist in
voltage control, provide operating reserves, and provide
frequency regulation.
(9) Such other functions as the Secretary may identify as
being necessary or useful to the operation of a Smart Grid.

(e) [NOTE: Procedures.  The Secretary shall--
(1) [NOTE: Federal Register, publication. Deadline.
establish and publish in the Federal Register, within 1 year
after the enactment of this Act procedures by which applicants
who have made qualifying Smart Grid investments can seek and
obtain reimbursement of one-fifth of their documented
expenditures;
(2) establish procedures to ensure that there is no
duplication or multiple reimbursement for the same investment or
costs, that the reimbursement goes to the party making the
actual expenditures for Qualifying Smart Grid Investments, and
that the grants made have significant effect in encouraging and
facilitating the development of a smart grid;
(3) [NOTE: Records.  maintain public records of
reimbursements made, recipients, and qualifying Smart Grid
investments which have received reimbursements;
(4) establish procedures to provide, in cases deemed by the
Secretary to be warranted, advance payment of moneys up to the
full amount of the projected eventual reimbursement, to
creditworthy applicants whose ability to make Qualifying Smart
Grid Investments may be hindered by lack of initial capital, in
lieu of any later reimbursement for which that applicant
qualifies, and subject to full return of the advance payment in
the event that the Qualifying Smart Grid investment is not made;
and
(5) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment of
the Secretary.

(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary for the
administration of this section and the grants to be made pursuant to
this section for fiscal years 2008 through 2012.

SEC. 1307. STATE CONSIDERATION OF SMART GRID.

(a) Section 111(d) of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:
``(16) Consideration of smart grid investments.--
``(A) In general.--Each State shall consider
requiring that, prior to undertaking investments in
nonadvanced grid technologies, an electric utility of
the State demonstrate

[[Page 1792]]
121 STAT. 1792

to the State that the electric utility considered an
investment in a qualified smart grid system based on
appropriate factors, including--
``(i) total costs;
``(ii) cost-effectiveness;
``(iii) improved reliability;
``(iv) security;
``(v) system performance; and
``(vi) societal benefit.
``(B) Rate recovery.--Each State shall consider
authorizing each electric utility of the State to
recover from ratepayers any capital, operating
expenditure, or other costs of the electric utility
relating to the deployment of a qualified smart grid
system, including a reasonable rate of return on the
capital expenditures of the electric utility for the
deployment of the qualified smart grid system.
``(C) Obsolete equipment.--Each State shall consider
authorizing any electric utility or other party of the
State to deploy a qualified smart grid system to recover
in a timely manner the remaining book-value costs of any
equipment rendered obsolete by the deployment of the
qualified smart grid system, based on the remaining
depreciable life of the obsolete equipment.
``(17) Smart grid information.--
``(A) Standard.--All electricity purchasers shall be
provided direct access, in written or electronic
machine-readable form as appropriate, to information
from their electricity provider as provided in
subparagraph (B).
``(B) Information.--Information provided under this
section, to the extent practicable, shall include:
``(i) Prices.--Purchasers and other interested
persons shall be provided with information on--
``(I) time-based electricity prices
in the wholesale electricity market; and
``(II) time-based electricity retail
prices or rates that are available to
the purchasers.
``(ii) Usage.--Purchasers shall be provided
with the number of electricity units, expressed in
kwh, purchased by them.
``(iii) Intervals and projections.--Updates of
information on prices and usage shall be offered
on not less than a daily basis, shall include
hourly price and use information, where available,
and shall include a day-ahead projection of such
price information to the extent available.
``(iv) Sources.--Purchasers and other
interested persons shall be provided annually with
written information on the sources of the power
provided by the utility, to the extent it can be
determined, by type of generation, including
greenhouse gas emissions associated with each type
of generation, for intervals during which such
information is available on a cost-effective
basis.
``(C) Access.--Purchasers shall be able to access
their own information at any time through the Internet
and on other means of communication elected by that
utility

[[Page 1793]]
121 STAT. 1793

for Smart Grid applications. Other interested persons
shall be able to access information not specific to any
purchaser through the Internet. Information specific to
any purchaser shall be provided solely to that
purchaser.''.

(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding the following at the end thereof:
``(6)(A) [NOTE: Deadlines.  Not later than 1 year after
the enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility shall
commence the consideration referred to in section 111, or set a
hearing date for consideration, with respect to the standards
established by paragraphs (17) through (18) of section 111(d).
``(B) Not later than 2 years after the date of the enactment
of this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking authority),
and each nonregulated electric utility, shall complete the
consideration, and shall make the determination, referred to in
section 111 with respect to each standard established by
paragraphs (17) through (18) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended
by adding the following at the end:

``In the case of the standards established by paragraphs (16)
through (19) of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraphs.''.
(3) Prior state actions.--Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is
amended by inserting ``and paragraphs (17) through (18)'' before
``of section 111(d)''.

SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE DEVELOPMENT
OF COMBINED HEAT AND POWER FACILITIES.

(a) Study.--
(1) In general.--The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study of
the laws (including regulations) affecting the siting of
privately owned electric distribution wires on and across public
rights-of-way.
(2) Requirements.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the
development of combined heat and power facilities;
(B) a determination of whether a change in the laws
would have any operating, reliability, cost, or other
impacts on electric utilities and the customers of the
electric utilities; and
(C) an assessment of--
(i) whether privately owned electric
distribution wires would result in duplicative
facilities; and

[[Page 1794]]
121 STAT. 1794

(ii) whether duplicative facilities are
necessary or desirable.

(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that describes
the results of the study conducted under subsection (a).

SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.

(a) DOE Study.--The [NOTE: Deadline. Reports.  Secretary shall,
within 18 months after the date of enactment of this Act, submit a
report to Congress that provides a quantitative assessment and
determination of the existing and potential impacts of the deployment of
Smart Grid systems on improving the security of the Nation's electricity
infrastructure and operating capability. The report shall include but
not be limited to specific recommendations on each of the following:
(1) How smart grid systems can help in making the Nation's
electricity system less vulnerable to disruptions due to
intentional acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation's electricity system subsequent to
disruptions.
(3) How smart grid systems can facilitate nationwide,
interoperable emergency communications and control of the
Nation's electricity system during times of localized, regional,
or nationwide emergency.
(4) What risks must be taken into account that smart grid
systems may, if not carefully created and managed, create
vulnerability to security threats of any sort, and how such
risks may be mitigated.

(b) Consultation.--The Secretary shall consult with other Federal
agencies in the development of the report under this section, including
but not limited to the Secretary of Homeland Security, the Federal
Energy Regulatory Commission, and the Electric Reliability Organization
certified by the Commission under section 215(c) of the Federal Power
Act (16 U.S.C. 824o) as added by section 1211 of the Energy Policy Act
of 2005 (Public Law 109-58; 119 Stat. 941).

TITLE [NOTE: Virginia Graeme Baker Pool and Spa Safety Act. 15 USC 8001
note.  XIV--POOL AND SPA SAFETY

SEC. 1401. SHORT TITLE.

This title may be cited as the ``Virginia Graeme Baker Pool and Spa
Safety Act''.

SEC. 1402. [NOTE: 15 USC 8001.  FINDINGS.

Congress finds the following:
(1) Of injury-related deaths, drowning is the second leading
cause of death in children aged 1 to 14 in the United States.
(2) In 2004, 761 children aged 14 and under died as a result
of unintentional drowning.
(3) Adult supervision at all aquatic venues is a critical
safety factor in preventing children from drowning.
(4) Research studies show that the installation and proper
use of barriers or fencing, as well as additional layers of
protection, could substantially reduce the number of childhood
residential swimming pool drownings and near drownings.

[[Page 1795]]
121 STAT. 1795

SEC. 1403. [NOTE: 15 USC 8002.  DEFINITIONS.

In this title:
(1) ASME/ANSI.--The term ``ASME/ANSI'' as applied to a
safety standard means such a standard that is accredited by the
American National Standards Institute and published by the
American Society of Mechanical Engineers.
(2) Barrier.--The term ``barrier'' includes a natural or
constructed topographical feature that prevents unpermitted
access by children to a swimming pool, and, with respect to a
hot tub, a lockable cover.
(3) Commission.--The term ``Commission'' means the Consumer
Product Safety Commission.
(4) Main drain.--The term ``main drain'' means a submerged
suction outlet typically located at the bottom of a pool or spa
to conduct water to a recirculating pump.
(5) Safety vacuum release system.--The term ``safety vacuum
release system'' means a vacuum release system capable of
providing vacuum release at a suction outlet caused by a high
vacuum occurrence due to a suction outlet flow blockage.
(6) Swimming pool; spa.--The term ``swimming pool'' or
``spa'' means any outdoor or indoor structure intended for
swimming or recreational bathing, including in-ground and above-
ground structures, and includes hot tubs, spas, portable spas,
and non-portable wading pools.
(7) Unblockable drain.--The term ``unblockable drain'' means
a drain of any size and shape that a human body cannot
sufficiently block to create a suction entrapment hazard.

SEC. 1404. [NOTE: 15 USC 8003.  FEDERAL SWIMMING POOL AND SPA DRAIN
COVER STANDARD.

(a) Consumer Product Safety Rule.--The requirements described in
subsection (b) shall be treated as a consumer product safety rule issued
by the Consumer Product Safety Commission under the Consumer Product
Safety Act (15 U.S.C. 2051 et seq.).
(b) [NOTE: Effective date.  Drain Cover Standard.--Effective 1
year after the date of enactment of this title, each swimming pool or
spa drain cover manufactured, distributed, or entered into commerce in
the United States shall conform to the entrapment protection standards
of the ASME/ANSI A112.19.8 performance standard, or any successor
standard regulating such swimming pool or drain cover.

(c) Public Pools.--
(1) Required equipment.--
(A) In general.--Beginning [NOTE: Effective
date.  1 year after the date of enactment of this
title--
(i) each public pool and spa in the United
States shall be equipped with anti-entrapment
devices or systems that comply with the ASME/ANSI
A112.19.8 performance standard, or any successor
standard; and
(ii) each public pool and spa in the United
States with a single main drain other than an
unblockable drain shall be equipped, at a minimum,
with 1 or more of the following devices or systems
designed to prevent entrapment by pool or spa
drains that meets the requirements of subparagraph
(B):
(I) Safety vacuum release system.--A
safety vacuum release system which
ceases operation of

[[Page 1796]]
121 STAT. 1796

the pump, reverses the circulation flow,
or otherwise provides a vacuum release
at a suction outlet when a blockage is
detected, that has been tested by an
independent third party and found to
conform to ASME/ANSI standard A112.19.17
or ASTM standard F2387.
(II) Suction-limiting vent system.--
A suction-limiting vent system with a
tamper-resistant atmospheric opening.
(III) Gravity drainage system.--A
gravity drainage system that utilizes a
collector tank.
(IV) Automatic pump shut-off
system.--An automatic pump shut-off
system.
(V) Drain disablement.--A device or
system that disables the drain.
(VI) Other systems.--Any other
system determined by the Commission to
be equally effective as, or better than,
the systems described in subclauses (I)
through (V) of this clause at preventing
or eliminating the risk of injury or
death associated with pool drainage
systems.
(B) Applicable standards.--Any device or system
described in subparagraph (A)(ii) shall meet the
requirements of any ASME/ANSI or ASTM performance
standard if there is such a standard for such a device
or system, or any applicable consumer product safety
standard.
(2) Public pool and spa defined.--In this subsection, the
term ``public pool and spa'' means a swimming pool or spa that
is--
(A) open to the public generally, whether for a fee
or free of charge;
(B) open exclusively to--
(i) members of an organization and their
guests;
(ii) residents of a multi-unit apartment
building, apartment complex, residential real
estate development, or other multi-family
residential area (other than a municipality,
township, or other local government jurisdiction);
or
(iii) patrons of a hotel or other public
accommodations facility; or
(C) operated by the Federal Government (or by a
concessionaire on behalf of the Federal Government) for
the benefit of members of the Armed Forces and their
dependents or employees of any department or agency and
their dependents.
(3) Enforcement.--Violation of paragraph (1) shall be
considered to be a violation of section 19(a)(1) of the Consumer
Product Safety Act (15 U.S.C. 2068(a)(1)) and may also be
enforced under section 17 of that Act (15 U.S.C. 2066).

SEC. 1405. [NOTE: 15 USC 8004.  STATE SWIMMING POOL SAFETY GRANT
PROGRAM.

(a) In General.--Subject to the availability of appropriations
authorized by subsection (e), the Commission shall establish a grant
program to provide assistance to eligible States.
(b) Eligibility.--To be eligible for a grant under the program, a
State shall--

[[Page 1797]]
121 STAT. 1797

(1) demonstrate to the satisfaction of the Commission that
it has a State statute, or that, after the date of enactment of
this title, it has enacted a statute, or amended an existing
statute, and provides for the enforcement of, a law that--
(A) except as provided in section 1406(a)(1)(A)(i),
applies to all swimming pools in the State; and
(B) meets the minimum State law requirements of
section 1406; and
(2) submit an application to the Commission at such time, in
such form, and containing such additional information as the
Commission may require.

(c) Amount of Grant.--The Commission shall determine the amount of a
grant awarded under this title, and shall consider--
(1) the population and relative enforcement needs of each
qualifying State; and
(2) allocation of grant funds in a manner designed to
provide the maximum benefit from the program in terms of
protecting children from drowning or entrapment, and, in making
that allocation, shall give priority to States that have not
received a grant under this title in a preceding fiscal year.

(d) Use of Grant Funds.--A State receiving a grant under this
section shall use--
(1) at least 50 percent of amounts made available to hire
and train enforcement personnel for implementation and
enforcement of standards under the State swimming pool and spa
safety law; and
(2) the remainder--
(A) to educate pool construction and installation
companies and pool service companies about the
standards;
(B) to educate pool owners, pool operators, and
other members of the public about the standards under
the swimming pool and spa safety law and about the
prevention of drowning or entrapment of children using
swimming pools and spas; and
(C) to defray administrative costs associated with
such training and education programs.

(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Commission for each of fiscal years 2009 and 2010
$2,000,000 to carry out this section, such sums to remain available
until expended. Any amounts appropriated pursuant to this subsection
that remain unexpended and unobligated at the end of fiscal year 2010
shall be retained by the Commission and credited to the appropriations
account that funds enforcement of the Consumer Product Safety Act.

SEC. 1406. [NOTE: 15 USC 8005.  MINIMUM STATE LAW REQUIREMENTS.

(a) In General.--
(1) Safety standards.--A State meets the minimum State law
requirements of this section if--
(A) the State requires by statute--
(i) the enclosure of all outdoor residential
pools and spas by barriers to entry that will
effectively prevent small children from gaining
unsupervised and unfettered access to the pool or
spa;
(ii) that all pools and spas be equipped with
devices and systems designed to prevent entrapment
by pool or spa drains;

[[Page 1798]]
121 STAT. 1798

(iii) that pools and spas built more than 1
year after the date of the enactment of such
statute have--
(I) more than 1 drain;
(II) 1 or more unblockable drains;
or
(III) no main drain;
(iv) every swimming pool and spa that has a
main drain, other than an unblockable drain, be
equipped with a drain cover that meets the
consumer product safety standard established by
section 1404; and
(v) that periodic notification is provided to
owners of residential swimming pools or spas about
compliance with the entrapment protection
standards of the ASME/ANSI A112.19.8 performance
standard, or any successor standard; and
(B) [NOTE: Notification. Comment period.  the
State meets such additional State law requirements for
pools and spas as the Commission may establish after
public notice and a 30-day public comment period.
(2) No liability inference associated with state
notification requirement.--The minimum State law notification
requirement under paragraph (1)(A)(v) shall not be construed to
imply any liability on the part of a State related to that
requirement.
(3) Use of minimum state law requirements.--The Commission--
(A) shall use the minimum State law requirements
under paragraph (1) solely for the purpose of
determining the eligibility of a State for a grant under
section 1405 of this Act; and
(B) may not enforce any requirement under paragraph
(1) except for the purpose of determining the
eligibility of a State for a grant under section 1405 of
this Act.
(4) Requirements to reflect national performance standards
and commission guidelines.--In establishing minimum State law
requirements under paragraph (1), the Commission shall--
(A) consider current or revised national performance
standards on pool and spa barrier protection and
entrapment prevention; and
(B) ensure that any such requirements are consistent
with the guidelines contained in the Commission's
publication 362, entitled ``Safety Barrier Guidelines
for Home Pools'', the Commission's publication entitled
``Guidelines for Entrapment Hazards: Making Pools and
Spas Safer'', and any other pool safety guidelines
established by the Commission.

(b) Standards.--Nothing in this section prevents the Commission from
promulgating standards regulating pool and spa safety or from relying on
an applicable national performance standard.
(c) Basic Access-Related Safety Devices and Equipment Requirements
To Be Considered.--In establishing minimum State law requirements for
swimming pools and spas under subsection (a)(1), the Commission shall
consider the following requirements:
(1) Covers.--A safety pool cover.
(2) Gates.--A gate with direct access to the swimming pool
or spa that is equipped with a self-closing, self-latching
device.

[[Page 1799]]
121 STAT. 1799

(3) Doors.--Any door with direct access to the swimming pool
or spa that is equipped with an audible alert device or alarm
which sounds when the door is opened.
(4) Pool alarm.--A device designed to provide rapid
detection of an entry into the water of a swimming pool or spa.

(d) Entrapment, Entanglement, and Evisceration Prevention Standards
To Be Required.--
(1) In general.--In establishing additional minimum State
law requirements for swimming pools and spas under subsection
(a)(1), the Commission shall require, at a minimum, 1 or more of
the following (except for pools constructed without a single
main drain):
(A) Safety vacuum release system.--A safety vacuum
release system which ceases operation of the pump,
reverses the circulation flow, or otherwise provides a
vacuum release at a suction outlet when a blockage is
detected, that has been tested by an independent third
party and found to conform to ASME/ANSI standard
A112.19.17 or ASTM standard F2387, or any successor
standard.
(B) Suction-limiting vent system.--A suction-
limiting vent system with a tamper-resistant atmospheric
opening.
(C) Gravity drainage system.--A gravity drainage
system that utilizes a collector tank.
(D) Automatic pump shut-off system.--An automatic
pump shut-off system.
(E) Drain disablement.--A device or system that
disables the drain.
(F) Other systems.--Any other system determined by
the Commission to be equally effective as, or better
than, the systems described in subparagraphs (A) through
(E) of this paragraph at preventing or eliminating the
risk of injury or death associated with pool drainage
systems.
(2) Applicable standards.--Any device or system described in
subparagraphs (B) through (E) of paragraph (1) shall meet the
requirements of any ASME/ANSI or ASTM performance standard if
there is such a standard for such a device or system, or any
applicable consumer product safety standard.

SEC. 1407. [NOTE: 15 USC 8006.  EDUCATION PROGRAM.

(a) In General.--The Commission shall establish and carry out an
education program to inform the public of methods to prevent drowning
and entrapment in swimming pools and spas. In carrying out the program,
the Commission shall develop--
(1) educational materials designed for pool manufacturers,
pool service companies, and pool supply retail outlets;
(2) educational materials designed for pool owners and
operators; and
(3) a national media campaign to promote awareness of pool
and spa safety.

(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Commission for each of the fiscal years 2008 through
2012 $5,000,000 to carry out the education program authorized by
subsection (a).

[[Page 1800]]
121 STAT. 1800

SEC. 1408. [NOTE: 15 USC 8007.  CPSC REPORT.

Not later than 1 year after the last day of each fiscal year for
which grants are made under section 1405, the Commission shall submit to
Congress a report evaluating the implementation of the grant program
authorized by that section.

TITLE XV--REVENUE PROVISIONS

SEC. 1500. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.

SEC. 1501. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.

(a) In General.--Section 3301 [NOTE: 26 USC 3301.  (relating to
rate of tax) is amended--
(1) by striking ``2007'' in paragraph (1) and inserting
``2008'', and
(2) by striking ``2008'' in paragraph (2) and inserting
``2009''.

(b) [NOTE: 26 USC 3301 note.  Effective Date.--The amendments
made by this section shall apply to wages paid after December 31, 2007.

SEC. 1502. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.

(a) In General.--Subparagraph (A) of section [NOTE: 26 USC 167.
167(h)(5) (relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.

(b) [NOTE: 26 USC 167 note.  Effective Date.--The amendment made
by this section shall apply to amounts paid or incurred after the date
of the enactment of this Act.

[[Page 1801]]
121 STAT. 1801

TITLE XVI--EFFECTIVE DATE

SEC. 1601. [NOTE: 2 USC 1824 note.  EFFECTIVE DATE.

This Act and the amendments made by this Act take effect on the date
that is 1 day after the date of enactment of this Act.

Approved December 19, 2007.

LEGISLATIVE HISTORY--H.R. 6:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 153 (2007):
Jan. 18, considered and passed House.
June 12-15, 18-21, considered and passed Senate, amended.
Dec. 6, House concurred in Senate amendments with
amendments.
Dec. 12, 13, Senate considered and concurred in House
amendments with an amendment.
Dec. 18, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 43 (2007):
Dec. 19, Presidential remarks.