Text: HR 2454 RH PART 1 OF 2

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THIS IS THE TEXT OF THE
[BROKEN INTO TWO POSTS BECAUSE THE BILL IS SO BIG THIS IS PART 1 OF 2]
CLIMATE CHANGE BILL
GLOBAL WARMING BILL
GREENHOUSE GAS
BREATH TAX
CARBON EMISSIONS
GREEN BILL
ECO-FEUDALISM BILL
The bill has been referred to by many names, The correct name is as follows

American Clean Energy and Security Act of 2009 (Reported in House)[H.R.2454.RH]
SOURCE: http://thomas.loc.gov/cgi-bin/query/z?c111:H.2454:
As Of 10:47 Sunday June 26, 2009
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HR 2454 RH

Union Calendar No. 90

111th CONGRESS

1st Session

H. R. 2454

[Report No. 111-137, Part I]

To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

IN THE HOUSE OF REPRESENTATIVES

May 15, 2009

Mr. WAXMAN (for himself and Mr. MARKEY of Massachusetts) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the

Committees on Foreign Affairs, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and

Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

June 5, 2009

Reported from the Committee on Energy and Commerce with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

June 5, 2009

The Committees on Education and Labor and Foreign Affairs discharged

June 5, 2009

Referral to the Committees on Financial Services, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and Means extended for a

period ending not later than June 19, 2009

June 19, 2009

The Committees on Financial Services, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and Means discharged; committed to

the Committee of the Whole House on the State of the Union and ordered to the printed

[For text of introduced bill, see copy of bill as introduced on May 15, 2009]

A BILL

To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `American Clean Energy and Security Act of 2009'.

(b) Table of Contents- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. International participation.

TITLE I--CLEAN ENERGY

Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.

Sec. 102. Clarifying State authority to adopt renewable energy incentives.

Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy.

Sec. 112. Regulations for geologic sequestration sites.

`Sec. 813. Geologic sequestration sites.

Sec. 113. Studies and reports.

Sec. 114. Carbon capture and sequestration demonstration and early deployment program.

Sec. 115. Commercial deployment of carbon capture and sequestration technologies.

`Sec. 786. Commercial deployment of carbon capture and sequestration technologies.

Sec. 116. Performance standards for coal-fueled power plants.

`Sec. 812. Performance standards for new coal-fired power plants.

Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure.

Sec. 122. Large-scale vehicle electrification program.

Sec. 123. Plug-in electric drive vehicle manufacturing.

Sec. 124. Investment in clean vehicles.

Sec. 125. Advanced technology vehicle manufacturing incentive loans.

Sec. 126. Amendment to renewable fuels standard.

Sec. 127. Open fuel standard.

Sec. 128. Temporary Vehicle Trade-in Program.

Sec. 129. Diesel emissions reduction.

Sec. 130. Loan guarantees for projects to construct renewable fuel pipelines.

Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.

Sec. 132. Support of State renewable energy and energy efficiency programs.

Subtitle E--Smart Grid Advancement

Sec. 141. Definitions.

Sec. 142. Assessment of Smart Grid cost effectiveness in products.

Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels.

Sec. 144. Smart Grid peak demand reduction goals.

Sec. 145. Reauthorization of energy efficiency public information program to include Smart Grid information.

Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

Subtitle F--Transmission Planning

Sec. 151. Transmission planning.

Sec. 152. Net metering for Federal agencies.

Sec. 153. Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric

transmission property.

Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act of 2007.

Sec. 162. Technical corrections to Energy Policy Act of 2005.

Subtitle H--Energy and Efficiency Centers

Sec. 171. Clean Energy Innovation Centers.

Sec. 172. Building Assessment Centers.

Sec. 173. Centers for Energy and Environmental Knowledge and Outreach.

Subtitle I--Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.

Sec. 182. Purpose.

Sec. 183. Definitions.

Sec. 184. Clean Energy Investment Fund.

Sec. 185. Energy technology deployment goals.

Sec. 186. Clean Energy Deployment Administration.

Sec. 187. Direct support.

Sec. 188. Federal credit authority.

Sec. 189. General provisions.

Subtitle J--Miscellaneous

Sec. 191. Study of ocean renewable energy and transmission planning and siting.

Sec. 192. Clean technology business competition grant program.

Sec. 193. National Bioenergy Partnership.

Sec. 194. Office of Consumer Advocacy.

TITLE II--ENERGY EFFICIENCY

Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.

Sec. 202. Building retrofit program.

Sec. 203. Energy efficient manufactured homes.

Sec. 204. Building energy performance labeling program.

Sec. 205. Tree planting programs.

Sec. 206. Energy efficiency for data center buildings.

Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.

Sec. 212. Other appliance efficiency standards.

Sec. 213. Appliance efficiency determinations and procedures.

Sec. 214. Best-in-Class Appliances Deployment Program.

Sec. 215. WaterSense.

Sec. 216. Federal procurement of water efficient products.

Sec. 217. Water efficient product rebate programs.

Sec. 218. Certified stoves program.

Sec. 219. Energy Star standards.

Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards.

`Part B--Mobile Sources

`Sec. 821. Greenhouse gas emission standards for mobile sources.

Sec. 222. Greenhouse gas emissions reductions through transportation efficiency.

`Part D--Planning Requirements

`Sec. 841. Greenhouse gas emissions reductions through transportation efficiency.

Sec. 223. SmartWay transportation efficiency program.

`Sec. 822. SmartWay transportation efficiency program.

Sec. 224. State vehicle fleets.

Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.

Sec. 242. Electric and thermal waste energy recovery award program.

Sec. 243. Clarifying election of waste heat recovery financial incentives.

Sec. 244. Motor market assessment and commercial awareness program.

Sec. 245. Motor efficiency rebate program.

Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts.

Subtitle F--Public Institutions

Sec. 261. Public institutions.

Sec. 262. Community energy efficiency flexibility.

Sec. 263. Small community joint participation.

Sec. 264. Low income community energy efficiency program.

Subtitle G--Miscellaneous

Sec. 271. Energy efficient information and communications technologies.

Sec. 272. National energy efficiency goals.

Sec. 273. Affiliated island energy independence team.

Sec. 274. Product carbon disclosure program.

TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title.

Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

`TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

`Part A--Global Warming Pollution Reduction Goals and Targets

`Sec. 701. Findings and purpose.

`Sec. 702. Economy-wide reduction goals.

`Sec. 703. Reduction targets for specified sources.

`Sec. 704. Supplemental pollution reductions.

`Sec. 705. Review and program recommendations.

`Sec. 706. National Academy review.

`Sec. 707. Presidential response and recommendations.

`Part B--Designation and Registration of Greenhouse Gases

`Sec. 711. Designation of greenhouse gases.

`Sec. 712. Carbon dioxide equivalent value of greenhouse gases.

`Sec. 713. Greenhouse gas registry.

`Part C--Program Rules

`Sec. 721. Emission allowances.

`Sec. 722. Prohibition of excess emissions.

`Sec. 723. Penalty for noncompliance.

`Sec. 724. Trading.

`Sec. 725. Banking and borrowing.

`Sec. 726. Strategic reserve.

`Sec. 727. Permits.

`Sec. 728. International emission allowances.

`Part D--Offsets

`Sec. 731. Offsets Integrity Advisory Board.

`Sec. 732. Establishment of offsets program.

`Sec. 733. Eligible project types.

`Sec. 734. Requirements for offset projects.

`Sec. 735. Approval of offset projects.

`Sec. 736. Verification of offset projects.

`Sec. 737. Issuance of offset credits.

`Sec. 738. Audits.

`Sec. 739. Program review and revision.

`Sec. 740. Early offset supply.

`Sec. 741. Environmental considerations.

`Sec. 742. Trading.

`Sec. 743. International offset credits.

`Part E--Supplemental Emissions Reductions From Reduced Deforestation

`Sec. 751. Definitions.

`Sec. 752. Findings.

`Sec. 753. Supplemental emissions reductions through reduced deforestation.

`Sec. 754. Requirements for international deforestation reduction program.

`Sec. 755. Reports and reviews.

`Sec. 756. Legal effect of part.

Sec. 312. Definitions.

`Sec. 700. Definitions.

Subtitle B--Disposition of Allowances

Sec. 321. Disposition of allowances for global warming pollution reduction program.

`Part H--Disposition of Allowances

`Sec. 781. Allocation of allowances for supplemental reductions.

`Sec. 782. Allocation of emission allowances.

`Sec. 783. Electricity consumers.

`Sec. 784. Natural gas consumers.

`Sec. 785. Home heating oil and propane consumers.

`Sec. 787. Allocations to refineries.

`Sec. 788. [Struck out->][ SECTION RESERVED ][<-Struck out] .

`Sec. 789. Climate change consumer refunds.

`Sec. 790. Exchange for State-issued allowances.

`Sec. 791. Auction procedures.

`Sec. 792. Auctioning allowances for other entities.

`Sec. 793. Establishment of funds.

`Sec. 794. Oversight of allocations.

Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards.

`TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

`Sec. 801. Definitions.

`Part A--Stationary Source Standards

`Sec. 811. Standards of performance.

`Part C--Exemptions From Other Programs

`Sec. 831. Criteria pollutants.

`Sec. 832. International air pollution.

`Sec. 833. Hazardous air pollutants.

`Sec. 834. New source review.

`Sec. 835. Title V permits.

Sec. 332. HFC Regulation.

Sec. 333. Black carbon.

`Part E--Black Carbon

`Sec. 851. Black carbon.

Sec. 334. States.

Sec. 335. State programs.

`Part F--Miscellaneous

`Sec. 861. State programs.

`Sec. 862. Grants for support of air pollution control programs.

Sec. 336. Enforcement.

Sec. 337. Conforming amendments.

Sec. 338. Davis-Bacon compliance.

Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance.

Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving energy commodities.

Sec. 352. No effect on authority of the Federal Energy Regulatory Commission.

Sec. 353. Inspector General of the Commodity Futures Trading Commission.

Sec. 354. Settlement and clearing through registered derivatives clearing organizations.

Sec. 355. Limitation on eligibility to purchase a credit default swap.

Sec. 356. Transaction fees.

Sec. 357. No effect on authority of the Federal Trade Commission.

Sec. 358. Regulation of carbon derivatives markets.

Sec. 359. Cease-and-desist authority.

TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

Subtitle A--Ensuring Real Reductions in Industrial Emissions

Sec. 401. Ensuring real reductions in industrial emissions.

`Part F--Ensuring Real Reductions in Industrial Emissions

`Sec. 761. Purposes.

`Sec. 762. International negotiations.

`Sec. 763. Definitions.

`subpart 1--emission allowance rebate program

`Sec. 764. Eligible industrial sectors.

`Sec. 765. Distribution of emission allowance rebates.

`subpart 2--international reserve allowance program

`Sec. 766. International reserve allowance program.

`subpart 3--presidential determination

`Sec. 767. Presidential reports and determinations.

Subtitle B--Green Jobs and Worker Transition

Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants.

Sec. 422. Increased funding for energy worker training program.

Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.

Sec. 426. Program benefits.

Sec. 427. General provisions.

Subtitle C--Consumer Assistance

Sec. 431. Energy tax credit.

Sec. 432. Energy refund program for low-income consumers.

Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes.

Sec. 442. Definitions.

Sec. 443. Governance.

Sec. 444. Determination of eligible countries.

Sec. 445. Qualifying activities.

Sec. 446. Assistance.

Subtitle E--Adapting to Climate Change

Part 1--Domestic Adaptation

subpart a--national climate change adaptation program

Sec. 451. National Climate Change Adaptation Program.

Sec. 452. Climate services.

Sec. 453. State programs to build resilience to climate change impacts.

subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change.

Sec. 462. Relationship to other laws.

Sec. 463. National strategic action plan.

Sec. 464. Advisory board.

Sec. 465. Reports.

Sec. 466. Definitions.

Sec. 467. Climate Change Health Protection and Promotion Fund.

subpart c--natural resource adaptation

Sec. 471. Purposes.

Sec. 472. Natural resources climate change adaptation policy.

Sec. 473. Definitions.

Sec. 474. Council on Environmental Quality.

Sec. 475. Natural Resources Climate Change Adaptation Panel.

Sec. 476. Natural Resources Climate Change Adaptation Strategy.

Sec. 477. Natural resources adaptation science and information.

Sec. 478. Federal natural resource agency adaptation plans.

Sec. 479. State natural resources adaptation plans.

Sec. 480. Natural Resources Climate Change Adaptation Fund.

Sec. 481. National Wildlife Habitat and Corridors Information Program.

Sec. 482. Additional provisions regarding Indian tribes.

Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes.

Sec. 492. Definitions.

Sec. 493. International Climate Change Adaptation Program.

Sec. 494. Distribution of allowances.

Sec. 495. Bilateral assistance.

SEC. 2. DEFINITIONS.

For purposes of this Act:

(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.

(2) STATE- The term `State' has the meaning given that term in section 302 of the Clean Air Act.

SEC. 3. INTERNATIONAL PARTICIPATION.

The Administrator, in consultation with the Department of State and the United States Trade Representative, shall annually prepare and certify a report to the Congress regarding

whether China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act. If the Administrator determines that China

and India have not adopted greenhouse gas emissions standards at least as stringent as those set forth in this Act, the Administrator shall notify each Member of Congress of his

determination, and shall release his determination to the media.

TITLE I--CLEAN ENERGY

Subtitle A--Combined Efficiency and Renewable Electricity Standard

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

(a) In General- Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end the following:

`SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

`(a) Definitions- For purposes of this section:

`(1) CHP SAVINGS- The term `CHP savings' means--

`(A) CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; and

`(B) the increase in CHP system savings from, at any time after the date of the enactment of this section, upgrading, replacing, expanding, or increasing the utilization of a

combined heat and power system that commenced operation on or before the date of enactment of this section.

`(2) CHP SYSTEM SAVINGS- The term `CHP system savings' means the electric output, and the electricity saved due to the mechanical output, of a combined heat and power

system, adjusted to reflect any increase in fuel consumption by that system as compared to the fuel that would have been required to produce an equivalent useful thermal energy

output in a separate thermal-only system.

`(3) COMBINED HEAT AND POWER SYSTEM- The term `combined heat and power system' means a system that uses the same energy source both for the generation of

electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that--

`(A) the system meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and

`(B) the net sales of electricity by the facility to customers not consuming the thermal output from that facility will not exceed 50 percent of total annual electric generation by

the facility.

`(4) CUSTOMER FACILITY SAVINGS- The term `customer facility savings' means a reduction in end-use electricity consumption (including recycled energy savings) at a facility

of an end-use consumer of electricity served by a retail electric supplier, as compared to--

`(A) in the case of a new facility, consumption at a reference facility of average efficiency;

`(B) in the case of an existing facility, consumption at such facility during a base period, except as provided in subparagraphs (C) and (D);

`(C) in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful

life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; and

`(D) in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average

efficiency of the same equipment type.

`(5) DISTRIBUTED RENEWABLE GENERATION FACILITY- The term `distributed renewable generation facility' means a facility that--

`(A) generates renewable electricity;

`(B) primarily serves 1 or more electricity consumers at or near the facility site; and

`(C) is no greater than--

`(i) 2 megawatts in capacity; or

`(ii) 4 megawatts in capacity, in the case of a facility that is placed in service after the date of enactment of this section and generates electricity from a renewable energy

resource other than by means of combustion.

`(6) ELECTRICITY SAVINGS- The term `electricity savings' means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures

implemented after the date of enactment of this section, limited to--

`(A) customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;

`(B) reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution

system equipment of average efficiency;

`(C) CHP savings; and

`(D) fuel cell savings.

`(7) FEDERAL LAND- The term `Federal land' means land owned by the United States, other than land held in trust for an Indian or Indian tribe.

`(8) FEDERAL RENEWABLE ELECTRICITY CREDIT- The term `Federal renewable electricity credit' means a credit, representing one megawatt hour of renewable electricity,

issued pursuant to subsection (e).

`(9) FUEL CELL- The term `fuel cell' means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at

separate electrodes in the device.

`(10) FUEL CELL SAVINGS- The term `fuel cell savings' means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a

fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as

compared with sources of electricity delivered through the grid, provided that--

`(A) the fuel cell meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and

`(B) the net sales of electricity from the fuel cell to customers not consuming the thermal output from the fuel cell, if any, do not exceed 50 percent of the total annual

electricity generation by the fuel cell.

`(11) HIGH CONSERVATION PRIORITY LAND- The term `high conservation priority land' means land that is not Federal land and is--

`(A) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; or

`(B) old-growth or late-successional forest, as identified by the office of the relevant State Forester or relevant State agency with regulatory jurisdiction over forestry activities.

`(12) OTHER QUALIFYING ENERGY RESOURCE- The term `other qualifying energy resource' means any of the following:

`(A) Landfill gas.

`(B) Wastewater treatment gas.

`(C) Coal mine methane used to generate electricity at or near the mine mouth.

`(D) Qualified waste-to-energy.

`(13) QUALIFIED HYDROPOWER- The term `qualified hydropower' means--

`(A) energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1992, at a hydroelectric facility that was placed in service

before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; or

`(B) energy produced from generating capacity added to a dam on or after January 1, 1992, provided that the Commission certifies that--

`(i) the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not

producing hydroelectric power prior to the addition of such capacity;

`(ii) the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the

license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; and

`(iii) the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence

of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the

environmental quality of the affected waterway.

`(14) QUALIFIED WASTE-TO-ENERGY- The term `qualified waste-to-energy' means energy from the combustion of municipal solid waste or construction, demolition, or

disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that--

`(A) such term shall include only the energy derived from the non-fossil biogenic portion of such waste or debris;

`(B) the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions

attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; and

`(C) the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis--

`(i) a certification that the facility is in compliance with all applicable State and Federal environmental permits;

`(ii) in the case of a facility that commenced operation before the date of enactment of this section, a certification that the facility meets emissions standards promulgated

under sections 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that apply as of the date of enactment of this section to new facilities within the relevant source category; and

`(iii) in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates

operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents.

`(15) RECYCLED ENERGY SAVINGS- The term `recycled energy savings' means a reduction in electricity consumption that results from a modification of an industrial or

commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be

wasted.

`(16) RENEWABLE BIOMASS- The term `renewable biomass' means any of the following:

`(A) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on

January 1, 2009.

`(B) Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009.

`(C) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food

waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals).

`(D) Animal waste or animal byproducts, including products of animal waste digesters.

`(E) Algae.

`(F) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public

official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line.

`(G) Residues from or byproducts of milled logs.

`(H) Any of the following removed from forested land that is not Federal and is not high conservation priority land:

`(i) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established--

`(I) prior to January 1, 2009; or

`(II) on land that, as of January 1, 2009, was cultivated or fallow and non-forested.

`(ii) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the

purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.

`(iii) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January 1,

2009, to restore or maintain native forest types.

`(iv) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees.

`(I) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land

Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are

removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem

health, and that are--

`(i) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands,

components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;

`(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and

`(iii) harvested in accordance with Federal and State law and applicable land management plans.

`(17) RENEWABLE ELECTRICITY- The term `renewable electricity' means electricity generated (including by means of a fuel cell) from a renewable energy resource or other

qualifying energy resources.

`(18) RENEWABLE ENERGY RESOURCE- The term `renewable energy resource' means each of the following:

`(A) Wind energy.

`(B) Solar energy.

`(C) Geothermal energy.

`(D) Renewable biomass.

`(E) Biogas derived exclusively from renewable biomass.

`(F) Biofuels derived exclusively from renewable biomass.

`(G) Qualified hydropower.

`(H) Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211).

`(19) RETAIL ELECTRIC SUPPLIER-

`(A) IN GENERAL- The term `retail electric supplier' means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric

consumers for purposes other than resale during the preceding calendar year.

`(B) INCLUSIONS AND LIMITATIONS- For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)--

`(i) the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate's lessees or tenants, for purposes other than resale shall be

considered to be sales of such electric utility; and

`(ii) sales by any electric utility to an affiliate, lessee, or tenant of such electric utility shall not be treated as sales to electric consumers.

`(C) AFFILIATE- For purposes of this paragraph, the term `affiliate' when used in relation to a person, means another person that directly or indirectly owns or controls, is

owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission.

`(20) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail electric supplier's base amount' means the total amount of electric energy sold by the retail electric

supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding--

`(A) electricity generated by a hydroelectric facility that is not qualified hydropower;

`(B) electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; and

`(C) the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and

geologically sequestered.

`(21) RETIRE AND RETIREMENT- The terms `retire' and `retirement' with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent

use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation.

`(22) THIRD-PARTY EFFICIENCY PROVIDER- The term `third-party efficiency provider' means any retailer, building owner, energy service company, financial institution or other

commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section.

`(23) TOTAL ANNUAL ELECTRICITY SAVINGS- The term `total annual electricity savings' means electricity savings during a specified calendar year from measures that were

placed into service since the date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in

accordance with such regulations as the Commission may promulgate and measured in megawatt hours.

`(b) Annual Compliance Obligation-

`(1) IN GENERAL- For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the

Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier's

annual combined target as set forth in subsection (d), except as otherwise provided in subsection (g).

`(2) DEMONSTRATION OF SAVINGS- For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that

demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electric supplier within the relevant compliance year.

`(3) RENEWABLE ELECTRICITY CREDITS PORTION- Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal

to at least three quarters of the retail electric supplier's annual combined target.

`(4) STATE PETITION-

`(A) IN GENERAL- Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission

shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of

demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier's annual combined target that is

attributable to electricity sales within such State.

`(B) CONTENTS- A Governor's request under this paragraph shall include an explanation of the Governor's rationale for determining, after consultation with the relevant

State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual

combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective.

`(C) REVISION- The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State,

submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that--

`(i) any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such

request is submitted, so as to provide retail electric suppliers with adequate notice of such change; and

`(ii) any revision shall meet the requirements of subparagraph (A).

`(c) Establishment of Program- Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the

requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable--

`(1) preserve the integrity, and incorporate best practices, of existing State renewable electricity and energy efficiency programs;

`(2) rely upon existing and emerging State or regional tracking systems that issue and track non-Federal renewable electricity credits; and

`(3) cooperate with the States to facilitate coordination between State and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens

and costs to retail electric suppliers.

`(d) Annual Compliance Requirement-

`(1) ANNUAL COMBINED TARGETS- For each of calendar years 2012 through 2039, a retail electric supplier's annual combined target shall be the product of--

`(A) the required annual percentage for such year, as set forth in paragraph (2); and

`(B) the retail electric supplier's base amount for such year.

`(2) REQUIRED ANNUAL PERCENTAGE- For each of calendar years 2012 through 2039, the required annual percentage shall be as follows:

--------------------------------

--------------------------------

2012 6.0

2013 6.0

2014 9.5

2015 9.5

2016 13.0

2017 13.0

2018 16.5

2019 16.5

2020 20.0

2021 through 2039 20.0

--------------------------------

`(e) Federal Renewable Electricity Credits-

`(1) IN GENERAL- The regulations promulgated under this section shall include provisions governing the issuance, tracking, and verification of Federal renewable electricity

credits. Except as provided in paragraphs (2), (3), and (4) of this subsection, the Commission shall issue to each generator of renewable electricity, 1 Federal renewable electricity

credit for each megawatt hour of renewable electricity generated by such generator after December 31, 2011. The Commission shall assign a unique serial number to each Federal

renewable electricity credit.

`(2) GENERATION FROM CERTAIN STATE RENEWABLE ELECTRICITY PROGRAMS- Where renewable electricity is generated with the support of payments from a retail

electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity

procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity

generation that is attributable to the retail electric supplier's payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant

renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more

than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among

retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States.

`(3) CERTAIN POWER SALES CONTRACTS- When a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in

service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with

such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract.

`(4) CREDIT MULTIPLIER FOR DISTRIBUTED RENEWABLE GENERATION-

`(A) IN GENERAL- Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable

electricity generated by a distributed renewable generation facility.

`(B) ADJUSTMENT- Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall

review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given

energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation

facilities using such source or technology cost competitive with other sources of renewable electricity generation.

`(C) FACILITIES PLACED IN SERVICE AFTER ENACTMENT- For any distributed renewable generation facility placed in service after the date of enactment of this section,

subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to

the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such

10-year period, the Commission shall issue Federal renewable electricity credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B).

`(5) CREDITS BASED ON QUALIFIED HYDROPOWER- For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower

shall be calculated--

`(A) based solely on the increase in average annual generation directly resulting from the efficiency improvements or capacity additions described in subsection (a)(13)(A);

and

`(B) using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility, as certified by the Commission.

`(6) GENERATION FROM MIXED RENEWABLE AND NONRENEWABLE RESOURCES- If electricity is generated using both a renewable energy resource or other qualifying

energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and

fossil fuel), the Commission shall issue Federal renewable electricity credits based on the proportion of the electricity that is attributable to the renewable energy resource or other

qualifying energy resource.

`(7) PROHIBITION AGAINST DOUBLE-COUNTING- Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal

renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance

with this section.

`(8) TRADING- The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such

credit for retirement by the Commission.

`(9) BANKING- A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which

the credit was issued or for any of the 3 immediately subsequent compliance years. The Commission shall retire any Federal renewable electricity credit that has not been retired by

April 2 of the calendar year that is 3 years after the calendar year in which the credit was issued.

`(10) RETIREMENT- The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in

satisfaction of a compliance obligation under subsection (b) or on some other basis.

`(f) Electricity Savings-

`(1) STANDARDS FOR MEASUREMENT OF SAVINGS- As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for

defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and

standards shall, at minimum--

`(A) specify the types of energy efficiency and energy conservation measures that can be counted;

`(B) require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to

account for changes in weather, level of production, and building area;

`(C) account for the useful life of measures;

`(D) include deemed savings values for specific, commonly used measures;

`(E) allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;

`(F) include procedures for counting CHP savings, recycled energy savings, and fuel cell savings;

`(G) include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measureable data

on the amount of megawatt-hours displaced;

`(H) avoid double-counting of savings used for compliance with this section, including savings that are transferred pursuant to paragraph (3);

`(I) ensure that, except as provided in subparagraph (K), the retail electric supplier claiming the savings played a significant role in achieving the savings (including through

the activities of a designated agent of the supplier or through the purchase of transferred savings);

`(J) include savings from programs administered by a retail electric supplier (or a retail electricity distributor that is not a retail electric supplier) that are funded by State,

Federal, or other sources;

`(K) in any State in which the State regulatory authority has designated 1 or more entities to administer electric ratepayer-funded efficiency programs approved by such State

regulatory authority, provide that electricity savings achieved through such programs shall be distributed equitably among retail electric suppliers in accordance with the direction of

the relevant State regulatory authority; and

`(L) exclude savings achieved as a result of compliance with mandatory appliance and equipment efficiency standards or building codes.

`(2) STANDARDS FOR THIRD-PARTY VERIFICATION OF SAVINGS- The regulations promulgated under this section shall establish procedures and standards requiring

third-party verification of all reported electricity savings, including requirements for accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have

no conflicts of interest.

`(3) TRANSFERS OF SAVINGS-

`(A) BILATERAL CONTRACTS FOR SAVINGS TRANSFERS- Subject to the limitations of this paragraph, a retail electric supplier may use electricity savings transferred,

pursuant to a bilateral contract, from another retail electric supplier, an owner of an electric distribution facility that is not a retail electric supplier, a State, or a third-party efficiency

provider to meet the applicable compliance obligation under subsection (b).

`(B) REQUIREMENTS- Electricity savings transferred and used for compliance pursuant to this paragraph shall be--

`(i) measured and verified in accordance with the procedures specified under this subsection;

`(ii) reported in accordance with paragraph (4) of this subsection; and

`(iii) achieved within the same State as is served by the retail electric supplier.

`(C) REGULATORY APPROVAL- Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electric supplier that is regulated

by such authority to obtain such authority's authorization or approval of a contract for transfer of savings under this paragraph.

`(4) REPORTING SAVINGS-

`(A) REQUIREMENTS- The regulations promulgated under this section shall establish requirements governing the submission of reports to demonstrate, in accordance

with the protocols and standards for measurement and third-party verification established under this subsection, the total annual electricity savings achieved by a retail electric

supplier within the relevant year.

`(B) REVIEW AND APPROVAL- The Commission shall review each report submitted to the Commission by a retail electric supplier and shall exclude any electricity savings

that have not been adequately demonstrated in accordance with the requirements of this subsection.

`(5) STATE ADMINISTRATION-

`(A) DELEGATION OF AUTHORITY- Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of

Columbia), the Commission may delegate to the State the authority to review and verify reported electricity savings for purposes of determining demonstrated total annual electricity

savings that may be counted towards a retail electric supplier's compliance obligation under subsection (b). The Commission shall make a substantive determination approving or

disapproving a State application under this subparagraph, after notice and comment, within 180 days of receipt of a complete application.

`(B) ALTERNATIVE MEASUREMENT AND VERIFICATION PROCEDURES AND STANDARDS- As part of an application submitted under subparagraph (A), a State may

request to use alternative measurement and verification procedures and standards to those specified in paragraphs (1) and (2), provided the State demonstrates that such alternative

procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under paragraphs

(1) and (2).

`(C) REVIEW OF STATE IMPLEMENTATION- The Commission shall, not less frequently than once every 4 years, review each State's implementation of delegated authority

under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a

finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph,

the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has--

`(i) promulgated new or substantially revised measurement and verification procedures and standards under this subsection; or

`(ii) otherwise substantially revised the program established under this section.

`(g) Alternative Compliance Payments-

`(1) IN GENERAL- A retail electric supplier may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each

Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on

January 1 of each year following calendar year 2009, in accordance with such regulations as the Commission may promulgate.

`(2) PAYMENT TO STATE FUNDS- Except as otherwise provided in this paragraph, payments made under this subsection shall be made directly to the State or States in which

the retail electric supplier is located, in proportion to the portion of the retail electric supplier's base amount that is sold within each relevant State, provided that such payments are

deposited directly into a fund in the State treasury established for this purpose and that the State uses such funds in accordance with paragraphs (3) and (4). If the Commission

determines at any time that a State is in substantial noncompliance with paragraph (3) or (4), the Commission shall direct that any future alternative compliance payments that would

otherwise be paid to such State under this subsection shall instead be paid to the Commission and deposited in the United States Treasury.

`(3) STATE USE OF FUNDS- As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall use such payments exclusively

for the purposes of--

`(A) deploying technologies that generate electricity from renewable energy resources; or

`(B) implementing cost-effective energy efficiency programs to achieve electricity savings.

`(4) REPORTING- As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall, within 12 months of receipt of any such

payments and at 12-month intervals thereafter until such payments are expended, provide a report to the Commission, in accordance with such regulations as the Commission may

prescribe, giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby.

`(h) Information Collection- The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems

appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading

information under this subsection shall be a violation of this section.

`(i) Enforcement and Judicial Review-

`(1) FAILURE TO SUBMIT CREDITS OR DEMONSTRATE SAVINGS- If any person fails to comply with the requirements of subsection (b) or (g), such person shall be liable to

pay to the Commission a civil penalty equal to the product of--

`(A) double the alternative compliance payment calculated under subsection (g)(1), and

`(B) the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to

submit in violation of the requirements of subsections (b) and (g).

`(2) ENFORCEMENT- The Commission shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act

(16 U.S.C. 823b(d)).

`(3) VIOLATION OF REQUIREMENT OF REGULATIONS OR ORDERS- Any person who violates, or fails or refuses to comply with, any requirement of a regulation promulgated

or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act (16 U.S.C. 825o-1). Such penalty shall be assessed by the

Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act.

`(j) Judicial Review- Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (i), may use

the procedures for review described in section 313 of the Federal Power Act (16 U.S.C. 825l). For purposes of this paragraph, references to an order in section 313 of such Act shall

be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i).

`(k) Savings Provisions- Nothing in this section shall--

`(1) diminish or qualify any authority of a State or political subdivision of a State to--

`(A) adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent

than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; or

`(B) regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State or political subdivision,

including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted

under this section; or

`(2) affect the application of, or the responsibility for compliance with, any other provision of law or regulation, including environmental and licensing requirements.

`(l) Sunset- This section expires on December 31, 2040.'.

(b) Conforming Amendment- The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by

inserting after the item relating to section 609 the following:

`Sec. 610. Combined efficiency and renewable electricity standard.'.

SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE ENERGY INCENTIVES.

Section 210 of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end thereof:

`(o) Clarification of State Authority to Adopt Renewable Energy Incentives- Notwithstanding any other provision of this Act or the Federal Power Act, a State legislature or regulatory

authority may set the rates for a sale of electric energy by a facility generating electric energy from renewable energy sources pursuant to a State-approved production incentive

program under which the facility voluntarily sells electric energy. For purposes of this subsection, `State-approved production incentive program' means a requirement imposed

pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609 of this

Act) at a specified rate.'.

Subtitle B--Carbon Capture and Sequestration

SEC. 111. NATIONAL STRATEGY.

(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy and the heads of such other relevant

Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other

barriers to the commercial-scale deployment of carbon capture and sequestration.

(b) Barriers- The report under this section shall--

(1) identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal

legislation, and those that would be best addressed at the State or regional level;

(2) identify regulatory implementation challenges, including those related to approval of State programs and delegation of authority for permitting; and

(3) recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers.

SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

(a) Coordinated Certification and Permitting Process- Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by

section 116 of this Act) the following:

`SEC. 813. GEOLOGIC SEQUESTRATION SITES.

`(a) Coordinated Process- The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant

statutory authorities. In establishing such approach, the Administrator shall--

`(1) take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h), as amended by section 112(b) of the

American Clean Energy and Security Act of 2009, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491-541 (July 25, 2008); and

`(2) to the extent practicable, reduce the burden on certified entities and implementing authorities.

`(b) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by

minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration.

`(c) Requirements- The regulations under subsection (b) shall include--

`(1) a process to obtain certification for geologic sequestration under this section; and

`(2) requirements for--

`(A) monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any

requirements or protocols developed under section 713;

`(B) public participation in the certification process that maximizes transparency;

`(C) the sharing of data between States, Indian tribes, and the Environmental Protection Agency; and

`(D) other elements or safeguards necessary to achieve the purpose set forth in subsection (b).

`(d) Report- Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on

Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States,

and, to the extent relevant, other countries in North America. Such report shall include--

`(1) data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced

hydrocarbon recovery operations occur;

`(2) an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices;

`(3) recommendations on how such programs and regulations should be improved or made more effective; and

`(4) other relevant information.'.

(b) Safe Drinking Water Act Standards- Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is amended by inserting after subsection (d) the following:

`(e) Carbon Dioxide Geologic Sequestration Wells-

`(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide

geologic sequestration wells.

`(2) FINANCIAL RESPONSIBILITY- The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including

financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide

geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby

trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.'.

SEC. 113. STUDIES AND REPORTS.

(a) Study of Legal Framework for Geologic Sequestration Sites-

(1) ESTABLISHMENT OF TASK FORCE- As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator shall establish a task force

to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in

environmental law, State officials with environmental expertise, representatives of State Attorneys General, and members of the private sector, to conduct a study of--

(A) existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the

ability of such laws to serve as risk management tools;

(B) the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon

dioxide injection has been used for enhanced hydrocarbon recovery;

(C) the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or

private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;

(D) private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic

sequestration sites; and

(E) the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide.

(2) REPORT- Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the

results of the study conducted under that paragraph including any consensus recommendations of the task force.

(b) Environmental Statutes-

(1) STUDY- The Administrator shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency

has responsibility would apply to carbon dioxide injection and geologic sequestration activities.

(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted

under paragraph (1).

SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY DEPLOYMENT PROGRAM.

(a) Definitions- For purposes of this section:

(1) SECRETARY- The term `Secretary' means the Secretary of Energy.

(2) DISTRIBUTION UTILITY- The term `distribution utility' means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation

to do so.

(3) ELECTRIC UTILITY- The term `electric utility' has the meaning provided by section 3(22) of the Federal Power Act (16 U.S.C. 796(22)).

(4) FOSSIL FUEL-BASED ELECTRICITY- The term `fossil fuel-based electricity' means electricity that is produced from the combustion of fossil fuels.

(5) FOSSIL FUEL- The term `fossil fuel' means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.

(6) CORPORATION- The term `Corporation' means the Carbon Storage Research Corporation established in accordance with this section.

(7) QUALIFIED INDUSTRY ORGANIZATION- The term `qualified industry organization' means the Edison Electric Institute, the American Public Power Association, the National

Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity

who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.

(8) RETAIL CONSUMER- The term `retail consumer' means an end-user of electricity.

(b) Carbon Storage Research Corporation-

(1) ESTABLISHMENT-

(A) REFERENDUM- Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering

fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the

qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or

other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based

electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities

voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.

(B) STATE REGULATORY AUTHORITIES- Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or

opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their

views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent

auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph

(A).

(2) TERMINATION- The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months

after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after

such date of enactment, unless the period is extended by an Act of Congress.

(3) GOVERNANCE- The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as `EPRI') and be managed by a

Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American

Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among

candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to

assessments under subsection (d).

(A) MEMBERS- The Board shall include at least one representative of each of the following:

(i) Investor-owned utilities.

(ii) Utilities owned by a State agency or a municipality.

(iii) Rural electric cooperatives.

(iv) Fossil fuel producers.

(v) Nonprofit environmental organizations.

(vi) Independent generators or wholesale power providers.

(vii) Consumer groups.

(B) NONVOTING MEMBERS- The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State

regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each designated by the National Association of State

Regulatory Utility Commissioners from States that are not within the same transmission interconnection.

(4) COMPENSATION- Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses

relating to their service.

(5) TERMS- Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not

more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2

years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.

(6) STATUS OF CORPORATION- The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or

employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any

other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose.

(c) Functions and Administration of the Corporation-

(1) IN GENERAL- The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and

methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial

assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under

subsection (d) to issue grants and contracts to eligible entities.

(2) PURPOSE- The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or

storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties,

be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit

applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or

conversion technologies.

(3) ELIGIBLE ENTITIES- Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities,

academic institutions, national laboratories, Federal research agencies, State research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and

similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the

costs of such projects.

(4) GRANTS FOR EARLY MOVERS- Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of

any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a

substantial portion of the unit's carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation

units.

(5) ADMINISTRATION- The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and

subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive

Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established

under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection

criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts,

and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall

give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for

capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.

(6) USES OF GRANTS, CONTRACTS, AND ASSISTANCE- A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when

needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the

purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.

(7) INTELLECTUAL PROPERTY- The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other

forms of technology support. Such policies shall encourage individual ingenuity and invention.

(8) ADMINISTRATIVE EXPENSES- Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the

Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).

(9) PROGRAMS AND BUDGET- Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the

Department's National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed

plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment

a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs.

The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a

strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).

(10) RECORDS; AUDITS- The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such

information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate.

Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to

other members of the industry. If the audit determines that the Corporation's practices fail to meet generally accepted accounting principles the assessment collection authority of the

Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall

make its books and records available for review by the Secretary or the Comptroller General of the United States.

(11) PUBLIC ACCESS- The Corporation Board's meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of

Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts,

personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.

(12) ANNUAL REPORT- Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and

projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and

project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less

than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.

(d) Assessments-

(1) AMOUNT- (A) In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity

delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based

electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:

----------------------------------------------------------------------

----------------------------------------------------------------------

Fuel type Rate of assessment per kilowatt hour

Coal $0.00043

Natural Gas $0.00022

Oil $0.00032.

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(B) The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel

types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through

additional financial commitments.

(2) INVESTMENT OF FUNDS- Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this

subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political

subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal

and interest by the United States.

(3) REVERSION OF UNUSED FUNDS- If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any

calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or

unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to

their collected assessments.

(e) ERCOT-

(1) ASSESSMENT, COLLECTION, AND REMITTANCE- (A) Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d)

shall be--

(i) levied directly on qualified scheduling entities, or their successor entities;

(ii) charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and

(iii) collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).

(B) The assessment amounts referred to in subparagraph (A) shall be--

(i) determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending

immediately prior to the period described in subsection (b)(2); and

(ii) take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.

(2) ADMINISTRATION EXPENSES- Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative

expenses incurred in the determination, collection and remittance of the assessments to the Corporation.

(3) AUDIT- ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.

(4) DEFINITIONS- For the purposes of this subsection:

(A) The term `ERCOT' means the Electric Reliability Council of Texas.

(B) The term `load-serving entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.

(C) The term `qualified scheduling entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.

(D) The term `renewable energy credit' has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public

Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.

(f) Determination of Fossil Fuel-Based Electricity Deliveries-

(1) FINDINGS- The Congress finds that:

(A) The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.

(B) Since many distribution utilities purchase all or part of their retail consumer's electricity needs from other entities, it may not be practical to determine the precise fuel mix

for the power sold by each individual distribution utility.

(C) It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (`RTO') or NERC regions, to make the

determinations necessary for making assessments.

(2) DOE PROPOSED RULE- The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to

determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined

to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available

and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best

balance of such factors.

(3) FINAL RULE- Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for

determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such

rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other

entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.

(4) ANNUAL DETERMINATIONS- Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each

such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in

applying any assessment under this subsection.

(5) REHEARING AND JUDICIAL REVIEW- The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in

determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the

determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary's determinations following rehearing shall be final and

subject to judicial review in the United States Court of Appeals for the District of Columbia.

(g) Compliance With Corporation Assessments- The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment

levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the

Corporation in bringing such action.

(h) Midcourse Review- Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to

Congress, assessing the Corporation's activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of

carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of

these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.

(i) Recovery of Costs-

(1) IN GENERAL- A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to

recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.

(2) RATEPAYER REBATES- Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities

are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).

(j) Technical Advisory Committee-

(1) ESTABLISHMENT- There is established an advisory committee, to be known as the `Technical Advisory Committee'.

(2) MEMBERSHIP- The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national

laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members

serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the

Secretary of Energy.

(3) CHAIRPERSON AND VICE CHAIRPERSON- The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and

one to serve as Vice Chairperson of the Committee.

(4) COMPENSATION- The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other

compensation as the Board determines to be necessary.

(5) PURPOSE- The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the

Board, concerning Corporation activities, including but not limited to the following:

(A) Reviewing and evaluating the Corporation's plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches

to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.

(B) Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments,

scientific research, or engineering practices would best further the goals of the Corporation.

(6) PUBLIC AVAILABILITY- All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge,

at time of receipt by the Board.

(k) Lobbying Restrictions- No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend

to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.

(l) Davis-Bacon Compliance- The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities

authorized by this section are in compliance with the Davis-Bacon Act (40 U.S.C. 276a-276a-5).

SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.

Part H of title VII of the Clean Air Act (as added by section 321 of this Act) is amended by adding the following new section after section 785:

`SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.

`(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances

allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both

electric power generation and industrial operations.

`(b) Eligibility Criteria- To be eligible to receive emission allowances under this section, the owner or operator of a project must--

`(1) implement carbon capture and sequestration technology--

`(A) at an electric generating unit that--

`(i) has a nameplate capacity of 200 megawatts or more;

`(ii) in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate

generating capacity of the unit, provided that clause (i) shall apply without exception;

`(iii) derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; and

`(iv) upon implementation of capture and sequestration technology, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon

dioxide produced by--

`(I) the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or

`(II) in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with

section 812(b)(2); or

`(B) at an industrial source that--

`(i) absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide;

`(ii) upon implementation, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point,

measured on an annual basis, determined in accordance with section 812(b)(2); and

`(iii) does not produce a liquid transportation fuel from a solid fossil-based feedstock;

`(2) geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such

requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;

`(3) meet all other applicable State and Federal permitting requirements; and

`(4) be located in the United States.

`(c) Phase I Distribution to Electric Generating Units-

`(1) APPLICATION- This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units.

`(2) DISTRIBUTION- The Administrator shall distribute emission allowances allocated under section 782(f) to the owner or operator of each eligible project at an electric

generating unit in a quantity equal to the quotient obtained by dividing--

`(A) the product obtained by multiplying--

`(i) the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such

methodology as the Administrator shall prescribe by regulation; and

`(ii) a bonus allowance value, pursuant to paragraph (3); by

`(B) the average fair market value of an emission allowance during the preceding year.

`(3) BONUS ALLOWANCE VALUES-

`(A) For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus

allowance value shall be $90.

`(B) The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a

minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.

`(C) For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later

than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator

of its intent to achieve such rate of capture and sequestration by not later than January 1, 2012.

`(D) For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by

regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations

solely for purposes of sequestration.

`(E) All monetary values in this section shall be adjusted annually for inflation.

`(d) Phase II Distribution to Electric Generating Units-

`(1) APPLICATION- This subsection shall apply only to the distribution of emission allowances to carbon capture and sequestration projects at electric generating units after

the capacity threshold identified in subsection (c)(1) is reached.

`(2) REGULATIONS- Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall

promulgate regulations to govern the distribution of emission allowances to the owners or operators of eligible projects under this subsection.

`(3) REVERSE AUCTIONS-

`(A) IN GENERAL- Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to the

owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may

establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus

retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and

sequestration in implementing this paragraph.

`(B) AUCTION PROCESS- At each reverse auction--

`(i) the Administrator shall solicit bids from eligible projects;

`(ii) eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity

of carbon dioxide that the project will permanently sequester over 10 years; and

`(iii) the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible project submitting the bid for the lowest

level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction

is committed.

`(C) FORM OF DISTRIBUTION- The Administrator shall provide deployment incentives to the owners or operators of eligible projects selected through a reverse auction

under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the incentive level that is bid by the entity shall be substituted for the bonus

allowance value.

`(4) ALTERNATIVE DISTRIBUTION METHOD-

`(A) IN GENERAL- If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and

sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to

the owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph.

`(B) MULTIPLE TRANCHES- The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of

tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall

not be greater than 6 gigawatts.

`(C) METHOD OF DISTRIBUTION- The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis--

`(i) based on the date of full-scale operation of capture and sequestration technology; and

`(ii) pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth

in subsection (c)(2)), establishing the number of allowances to be distributed per ton of carbon dioxide sequestered by the project.

`(D) REQUIREMENTS- For each tranche established pursuant to subparagraph (A), the Administrator shall establish a schedule for distributing emission allowances that--

`(i) is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration;

`(ii) for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case

of the first tranche, than that established for such rate under subsection (c)(3)); and

`(iii) may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type,

new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof.

`(E) CRITERIA FOR ESTABLISHING BONUS ALLOWANCE VALUES- In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more

than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies,

taking into account--

`(i) the reduced cost of compliance with section 722 of this Act;

`(ii) the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into

geological formations solely for purposes of sequestration;

`(iii) the relevant factors defining the project category; and

`(iv) such other factors as the Administrator determines are appropriate.

`(5) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8

years.

`(e) Limits for Certain Electric Generating Units-

`(1) DEFINITIONS- For purposes of this subsection, the terms `covered EGU' and `initially permitted' shall have the meaning given those terms in section 812 of this Act.

`(2) COVERED EGUS INITIALLY PERMITTED FROM 2009 THROUGH 2014- For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1,

2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section as

follows:

`(A) In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of--

`(i) 20 percent; and

`(ii) the number of years, if any, that have elapsed between--

`(I) the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; and

`(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon

dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).

`(B) In the case of a unit commencing operation after January 1, 2019, by the product of--

`(i) 20 percent; and

`(ii) the number of years between--

`(I) the commencement of operation of such covered EGU; and

`(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon

dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).

`(3) COVERED EGUS INITIALLY PERMITTED FROM 2015 THROUGH 2019- The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and

before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations (and thereafter), does not achieve

and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in

accordance with section 812(b)(2).

`(f) Industrial Sources-

`(1) ALLOWANCES- The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(a) for any vintage year to the owners or operators

of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources.

`(2) DISTRIBUTION- The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources

under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently

sequestered. The Administrator may provide for the distribution of emission allowances pursuant to--

`(A) a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; or

`(B) an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in

subsection (d)(4)(E).

`(3) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8

years.

`(g) Limitations- Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project

may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including

industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit

described in the preceding sentence, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(f) and are not yet obligated

under this section shall be treated as allowances not designated for distribution for purposes of section 782(r).

`(h) Exhaustion of Account and Annual Roll-Over of Surplus Allowances-

`(1) In distributing bonus allowances under this subsection, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.

`(2) If the Administrator determines that the allowances allocated under section 782(f) with a vintage year that matches the year of distribution will be exhausted once the

estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year

of the distribution.

`(i) Retrofit Applications- (1) In calculating bonus allowance values for retrofit applications eligible under subsections (b)(1)(A)(ii) and (b)(1)(A)(iv)(II), the Administrator shall apply

the required capture rates with respect to the treated portion of flue gas from the unit.

`(2) No additional projects shall be eligible for allowances under subsections (b)(1)(A)(ii) and (b)(1)(A)(iv)(II) as of such time as the Administrator reports, pursuant to section

812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the

flue gas generated by 1 gigawatt of total cumulative generating capacity.

`(j) Davis-Bacon Compliance- All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of bonus

allowances 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

subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority

and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.'.

SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

(a) In General- Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811:

`SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

`(a) Definitions- For purposes of this section:

`(1) COVERED EGU- The term `covered EGU' means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at

least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.

`(2) INITIALLY PERMITTED- The term `initially permitted' means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU

as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits,

ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which

a covered EGU is considered to be initially permitted under this paragraph.

`(b) Standards- (1) A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon

dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).

`(2) A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve

an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth

in this paragraph shall be required by the earliest of the following:

`(A) Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating

units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate--

`(i) have a total of at least 4 gigawatts of nameplate generating capacity of which--

`(I) at least 3 gigawatts must be electric generating units; and

`(II) up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis

shall be considered equivalent to 1 gigawatt;

`(ii) include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide

into geologic formations other than oil and gas fields; and

`(iii) are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis.

`(B) January 1, 2025.

`(3) If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the

Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline.

The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the

extension request.

`(c) Review and Revision of Standards- Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section

and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the

application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and

energy requirements) the Administrator determines has been adequately demonstrated.

`(d) Reports- Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate

capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including

the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria

described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).

`(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.'.

Subtitle C--Clean Transportation

SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

(a) Amendment of PURPA- 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:

`(20) PLUG-IN ELECTRIC DRIVE VEHICLE INFRASTRUCTURE-

`(A) UTILITY PLAN FOR INFRASTRUCTURE- Each electric utility shall develop a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric

vehicles. The plan may provide for deployment of electrical charging stations in public or private locations, including street parking, parking garages, parking lots, homes, gas

stations, and highway rest stops. Any such plan may also include--

`(i) battery exchange, fast charging infrastructure and other services;

`(ii) triggers for infrastructure deployment based upon market penetration of plug-in electric drive vehicles; and

`(iii) such other elements as the State determines necessary to support plug-in electric drive vehicles.

Each plan under this paragraph shall provide for the deployment of the charging infrastructure or other infrastructure necessary to adequately support the use of plug-in

electric drive vehicles.

`(B) SUPPORT REQUIREMENTS- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a

nonregulated utility) shall--

`(i) require that charging infrastructure deployed is interoperable with products of all auto manufacturers to the extent possible; and

`(ii) consider adopting minimum requirements for deployment of electrical charging infrastructure and other appropriate requirements necessary to support the use of

plug-in electric drive vehicles.

`(C) COST RECOVERY- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated

utility) shall consider whether, and to what extent, to allow cost recovery for plans and implementation of plans.

`(D) SMART GRID INTEGRATION- The State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a

nonregulated utility) shall, in accordance with regulations issued by the Federal Energy Regulatory Commission pursuant to section 1305(d) of the Energy Independence and Security

Act of 2007--

`(i) establish any appropriate protocols and standards for integrating plug-in electric drive vehicles into an electrical distribution system, including Smart Grid systems

and devices as described in title XIII of the Energy Independence and Security Act of 2007;

`(ii) include, to the extent feasible, the ability for each plug-in electric drive vehicle to be identified individually and to be associated with its owner's electric utility account,

regardless of the location that the vehicle is plugged in, for purposes of appropriate billing for any electricity required to charge the vehicle's batteries as well as any crediting for

electricity provided to the electric utility from the vehicle's batteries; and

`(iii) review the determination made in response to section 1252 of the Energy Policy Act of 2005 in light of this section, including whether time-of-use pricing should be

employed to enable the use of plug-in electric drive vehicles to contribute to meeting peak-load and ancillary service power needs.'.

(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:

`(7)(A) Not later than 3 years after the date of 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 standard established by

paragraph (20) of section 111(d).

`(B) Not later than 4 years after the date of enactment of the 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 the standard established by

paragraph (20) 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 paragraph (20) 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 paragraph.'.

(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 striking `(19)' and inserting `(20)' before `of

section 111(d)'.

SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

(a) Deployment Program- The Secretary of Energy shall establish a program to deploy and integrate plug-in electric drive vehicles into the electricity grid in multiple regions. In

carrying out the program, the Secretary may provide financial assistance described under subsection (d), consistent with the goals under subsection (b). The Secretary shall select

regions based upon applications for assistance received pursuant to subsection (c).

(b) Goals- The goals of the program established pursuant to subsection (a) shall be--

(1) to demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a

system based on conventional vehicles;

(2) to facilitate the integration of advanced vehicle technologies into electricity distribution areas to improve system performance and reliability;

(3) to demonstrate the potential benefits of coordinated investments in vehicle electrification on personal mobility and a regional grid;

(4) to demonstrate protocols and standards that facilitate vehicle integration into the grid; and

(5) to investigate differences in each region and regulatory environment regarding best practices in implementing vehicle electrification.

(c) Applications- Any State, Indian tribe, or local government (or group of State, Indian tribe, or local governments) may apply to the Secretary of Energy for financial assistance in

furthering the regional deployment and integration into the electricity grid of plug-in electric drive vehicles. Such applications may be jointly sponsored by electric utilities, automobile

manufacturers, technology providers, car sharing companies or organizations, or other persons or entities.

(d) Use of Funds- Pursuant to applications received under subsection (c), the Secretary may make financial assistance available to any applicant or joint sponsor of the

application to be used for any of the following:

(1) Assisting persons located in the regional deployment area, including fleet owners, in the purchase of new plug-in electric drive vehicles by offsetting in whole or in part the

incremental cost of such vehicles above the cost of comparable conventionally fueled vehicles.

(2) Supporting the use of plug-in electric drive vehicles by funding projects for the deployment of any of the following:

(A) Electrical charging infrastructure for plug-in electric drive vehicles, including battery exchange, fast charging infrastructure, and other services, in public or private

locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops.

(B) Smart Grid equipment and infrastructure, as described in title XIII of the Energy Independence and Security Act of 2007, to facilitate the charging and integration of plug-in

electric drive vehicles.

(3) Such other projects as the Secretary determines appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas.

(e) Program Requirements- The Secretary, in consultation with the Administrator and the Secretary of Transportation, shall determine design elements and requirements of the

program established pursuant to subsection (a), including--

(1) the type of financial mechanism with which to provide financial assistance;

(2) criteria for evaluating applications submitted under subsection (c), including the anticipated ability to promote deployment and market penetration of vehicles that are less

dependent on petroleum as a fuel source; and

(3) reporting requirements for entities that receive financial assistance under this section, including a comprehensive set of performance data characterizing the results of the

deployment program.

(f) Information Clearinghouse- The Secretary shall, as part of the program established pursuant to subsection (a), collect and make available to the public information regarding

the cost, performance, and other technical data regarding the deployment and integration of plug-in electric drive vehicles.

(g) Authorization- There are authorized to be appropriated to carry out this section such sums as may be necessary.

SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

(a) Vehicle Manufacturing Assistance Program- The Secretary of Energy shall establish a program to provide financial assistance to automobile manufacturers to facilitate the

manufacture of plug-in electric drive vehicles, as defined in section 131(a)(5) of the Energy Independence and Security Act of 2007, that are developed and produced in the United

States.

(b) Financial Assistance- The Secretary of Energy may provide financial assistance to an automobile manufacturer under the program established pursuant to subsection (a) for--

(1) the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles that are developed and produced in the United States; and

(2) if appropriate, the purchase of domestically produced vehicle batteries to be used in the manufacture of vehicles manufactured pursuant to paragraph (1).

(c) Coordination With Regional Deployment- The Secretary may provide financial assistance under subsection (b) in conjunction with the award of financial assistance under the

large scale vehicle electrification program established pursuant to section 122 of this Act.

(d) Program Requirements- The Secretary shall determine design elements and requirements of the program established pursuant to subsection (a), including--

(1) the type of financial mechanism with which to provide financial assistance;

(2) criteria, in addition to the criteria described under subsection (e), for evaluating applications for financial assistance; and

(3) reporting requirements for automobile manufacturers that receive financial assistance under this section.

(e) Criteria- In selecting recipients of financial assistance from among applicant automobile manufacturers, the Secretary shall give preference to proposals that--

(1) are most likely to be successful; and

(2) are located in local markets that have the greatest need for the facility.

(f) Reports- The Secretary shall annually submit to Congress a report on the program established pursuant to this section.

(g) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.

SEC. 124. INVESTMENT IN CLEAN VEHICLES.

(a) Definitions- In this section:

(1) ADVANCED TECHNOLOGY VEHICLES AND QUALIFYING COMPONENTS- The terms `advanced technology vehicles' and `qualifying components' shall have the definition

of such terms in section 136 of the Energy Independence and Security Act of 2007, except that for purposes of this section, the average base year as described in such section

136(a)(1)(C) shall be the following:

(A) In each of the years 2012 through 2016, model year 2009.

(B) In 2017, the Administrator shall, notwithstanding such section 136(a)(1)(C), determine an appropriate baseline based on technological and economic feasibility.

(2) PLUG-IN ELECTRIC DRIVE VEHICLE- The term `plug-in electric drive vehicle' shall have the definition of such term in section 131 of the Energy Independence and Security

Act of 2007.

(b) Distribution of Allowances- The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(i) of the Clean Air Act not

later than September 30 of 2012 and each calendar year thereafter through 2025.

(c) Plug-in Electric Drive Vehicle Manufacturing and Deployment-

(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide emission allowances allocated pursuant to section 782(i) to applicants, joint

sponsors and automobile manufacturers pursuant to sections 122 and 123 of this Act.

(2) ANNUAL AMOUNT- In each of the years 2012 through 2017, one-quarter of the portion of the emission allowances allocated pursuant to section 782(i) of the Clean Air Act

shall be available to carry out paragraph (1) such that--

(A) one-eighth of the portion shall be available to carry out section 122; and,

(B) one-eighth of the portion shall be available to carry out section 123.

(3) PREFERENCE- In directing the provision of emission allowances under this subsection to carry out section 122, the Secretary shall give preference to applications under

section 122(c) that are jointly sponsored by one or more automobile manufacturers.

(4) MULTI-YEAR COMMITMENTS- The Administrator shall commit to providing emission allowances to an applicant, joint sponsor, or automobile manufacturer for up to five

consecutive years if--

(A) an application under section 122 or 123 of this Act requests a multi-year commitment;

(B) such application meets the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act;

(C) the Administrator confirms to the Secretary that emission allowances will be available for a multi-year commitment;

(D) the Secretary of Energy determines that a multi-year commitment for such application will advance the goals of section 122 or 123; and

(E) the Secretary of Energy directs the Administrator to make a multi-year commitment.

(5) INSUFFICIENT APPLICATIONS- If, in any year, emission allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted

applications that meet the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act, the remaining emission allowances shall be distributed

according to subsection (d).

(d) Advanced Technology Vehicles-

(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide any emission allowances allocated pursuant to section 782(i) of the Clean Air Act

that are not provided under subsection (c) to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of--

(A) reequipping, expanding, or establishing a manufacturing facility in the United States to produce--

(i) qualifying advanced technology vehicles; or

(ii) qualifying components; and

(B) engineering integration performed in the United States of qualifying vehicles and qualifying components.

(2) PREFERENCE- In directing the provision of emission allowances under this subsection during the years 2012 through 2017, the Secretary shall give preference to

applications for projects that save the maximum number of gallons of fuel.

SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE LOANS.

Section 136(d)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is amended by striking `$25,000,000,000' and inserting `$50,000,000,000'.

SEC. 126. AMENDMENT TO RENEWABLE FUELS STANDARD.

(a) Definition of Renewable Biomass- Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)) is amended to read as follows:

`(I) RENEWABLE BIOMASS- The term `renewable biomass' means any of the following:

`(i) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on

January 1, 2009.

`(ii) Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009.

`(iii) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food

waste (but not recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals).

`(iv) Animal waste or animal byproducts, including products of animal waste digesters.

`(v) Algae.

`(vi) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a

public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line.

`(vii) Residues from or byproducts of milled logs.

`(viii) Any of the following removed from forested land that is not Federal and is not high conservation priority land:

`(I) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established--

`(aa) prior to January 1, 2009; or

`(bb) on land that, as of January 1, 2009, was cultivated or fallow and non-forested.

`(II) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the

purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.

`(III) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January

1, 2009, to restore or maintain native forest types.

`(IV) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees.

`(ix) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land

Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are

removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem

health, and that are--

`(I) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands,

components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;

`(II) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and

`(III) harvested in accordance with Federal and State law and applicable land management plans.'.

(b) Definition of High Conservation Priority Land- Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by inserting the following at the end thereof:

`(M) HIGH CONSERVATION PRIORITY LAND- The term `high conservation priority land' means land that is not Federal land and is--

`(i) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; or

`(ii) old-growth or late-successional forest, as identified by the office of the State Forester or relevant State agency with regulatory jurisdiction over forestry activities.'.

SEC. 127. OPEN FUEL STANDARD.

(a) Findings- The Congress finds that--

(1) the status of oil as a strategic commodity, which derives from its domination of the transportation sector, presents a clear and present danger to the United States;

(2) in a prior era, when salt was a strategic commodity, salt mines conferred national power and wars were fought over the control of such mines;

(3) technology, in the form of electricity and refrigeration, decisively ended salt's monopoly of meat preservation and greatly reduced its strategic importance;

(4) fuel competition and consumer choice would similarly serve to end oil's monopoly in the transportation sector and strip oil of its strategic status;

(5) the current closed fuel market has allowed a cartel of petroleum exporting countries to inflate fuel prices, effectively imposing a harmful tax on the economy of the United

States;

(6) much of the inflated petroleum revenues the oil cartel earns at the expense of the people of the United States are used for purposes antithetical to the interests of the United

States and its allies;

(7) alcohol fuels, including ethanol and methanol, could potentially provide significant supplies of additional fuels that could be produced in the United States and in many other

countries in the Western Hemisphere that are friendly to the United States;

(8) alcohol fuels can only play a major role in securing the energy independence of the United States if a substantial portion of vehicles in the United States are capable of

operating on such fuels;

(9) it is not in the best interest of United States consumers or the United States Government to be constrained to depend solely upon petroleum resources for vehicle fuels if

alcohol fuels are potentially available;

(10) existing technology, in the form of flexible fuel vehicles, allows internal combustion engine cars and trucks to be produced at little or no additional cost, which are capable

of operating on conventional gasoline, alcohol fuels, or any combination of such fuels, as availability or cost advantage dictates, providing a platform on which fuels can compete;

(11) the necessary distribution system for such alcohol fuels will not be developed in the United States until a substantial fraction of the vehicles in the United States are

capable of operating on such fuels;

(12) the establishment of such a vehicle fleet and distribution system would provide a large market that would mobilize private resources to substantially advance the

technology and expand the production of alcohol fuels in the United States and abroad;

(13) the United States has an urgent national security interest to develop alcohol fuels technology, production, and distribution systems as rapidly as possible;

(14) new cars sold in the United States that are equipped with an internal combustion engine should allow for fuel competition by being flexible fuel vehicles, and new diesel

cars should be capable of operating on biodiesel; and

(15) such an open fuel standard would help to protect the United States economy from high and volatile oil prices and from the threats caused by global instability, terrorism,

and natural disaster.

(b) Open Fuel Standard for Transportation- (1) Chapter 329 of title 49, United States Code, is amended by adding at the end the following:

`Sec. 32920. Open fuel standard for transportation

`(a) Definitions- In this section:

`(1) E85- The term `E85' means a fuel mixture containing 85 percent ethanol and 15 percent gasoline by volume.

`(2) FLEXIBLE FUEL AUTOMOBILE- The term `flexible fuel automobile' means an automobile that has been warranted by its manufacturer to operate on gasoline, E85, and

M85.

`(3) FUEL CHOICE-ENABLING AUTOMOBILE- The term `fuel choice-enabling automobile' means--

`(A) a flexible fuel automobile; or

`(B) an automobile that has been warranted by its manufacturer to operate on biodiesel.

`(4) LIGHT-DUTY AUTOMOBILE- The term `light-duty automobile' means--

`(A) a passenger automobile; or

`(B) a non-passenger automobile.

`(5) LIGHT-DUTY AUTOMOBILE MANUFACTURER'S ANNUAL COVERED INVENTORY- The term `light-duty automobile manufacturer's annual covered inventory' means the

number of light-duty automobiles powered by an internal combustion engine that a manufacturer, during a given calendar year, manufactures in the United States or imports from

outside of the United States for sale in the United States.

`(6) M85- The term `M85' means a fuel mixture containing 85 percent methanol and 15 percent gasoline by volume.

`(b) Open Fuel Standard for Transportation-

`(1) IN GENERAL- The Secretary may promulgate regulations to require each light-duty automobile manufacturer's annual covered inventory to be comprised of a minimum

percentage of fuel-choice enabling automobiles, with sufficient lead time, if the Secretary, in coordination with the Secretary of Energy and the Administrator of the Environmental

Protection Agency, determines such requirement is a cost-effective way to achieve the Nation's energy independence and environmental objectives. The cost-effective determination

shall consider the future availability of both alternative fuel supply and infrastructure to deliver the alternative fuel to the fuel-choice enabling vehicles.

`(2) TEMPORARY EXEMPTION FROM REQUIREMENTS-

`(A) APPLICATION- A manufacturer may request an exemption from the requirement described in paragraph (1) by submitting an application to the Secretary, at such time,

in such manner, and containing such information as the Secretary may require by regulation. Each such application shall specify the models, lines, and types of automobiles affected.

`(B) EVALUATION- After evaluating an application received from a manufacturer, the Secretary may at any time, under such terms and conditions, and to such extent as the

Secretary considers appropriate, temporarily exempt, or renew the exemption of, a light-duty automobile from the requirement described in paragraph (1) if the Secretary determines

that unavoidable events not under the control of the manufacturer prevent the manufacturer of such automobile from meeting its required production volume of fuel choice-enabling

automobiles, including--

`(i) a disruption in the supply of any component required for compliance with the regulations;

`(ii) a disruption in the use and installation by the manufacturer of such component; or

`(iii) application to plug-in electric drive vehicles causing such vehicles to fail to meet State air quality requirements.

`(C) CONSOLIDATION- The Secretary may consolidate applications received from multiple manufacturers under subparagraph (A) if they are of a similar nature.

`(D) CONDITIONS- Any exemption granted under subparagraph (B) shall be conditioned upon the manufacturer's commitment to recall the exempted automobiles for

installation of the omitted components within a reasonable time proposed by the manufacturer and approved by the Secretary after such components become available in sufficient

quantities to satisfy both anticipated production and recall volume requirements.

`(E) NOTICE- The Secretary shall publish in the Federal Register--

`(i) notice of each application received from a manufacturer;

`(ii) notice of each decision to grant or deny a temporary exemption; and

`(iii) the reasons for granting or denying such exemptions.'.

(2) The table of contents in chapter 329 of such title is amended adding at the end the following:

`32920. Open fuel standard for transportation.'.

SEC. 128. TEMPORARY VEHICLE TRADE-IN PROGRAM.

(a) Establishment- There is established in the National Highway Traffic Safety Administration a program to be known as the `Cash for Clunkers Temporary Vehicle Trade-in

Program' through which the Secretary, in accordance with this section and the regulations promulgated under subsection (d), shall--

(1) authorize the issuance of an electronic voucher, subject to the specifications set forth in subsection (c), to offset the purchase price or lease price for a qualifying lease of a

new fuel efficient automobile upon the surrender of an eligible trade-in vehicle to a dealer participating in the Program;

(2) certify dealers for participation in the Program and require that all certified dealers--

(A) accept vouchers as provided in this section as partial payment or down payment for the purchase or qualifying lease of any new fuel efficient automobile offered for sale

or lease by that dealer; and

(B) in accordance with subsection (c)(2), dispose of each eligible trade-in vehicle surrendered to the dealer under the Program;

(3) in consultation with the Secretary of the Treasury, make payments to dealers for vouchers accepted by such dealers prior to April 1, 2010, in accordance with the regulations

issued under subsection (d);

(4) in consultation with the Secretary of the Treasury, provide for the payment of rebates to persons who qualify for a rebate under subsection (c)(3); and

(5) in consultation with the Secretary of the Treasury and the Inspector General of the Department of Transportation, establish and provide for the enforcement of measures to

prevent and penalize fraud under the Program.

(b) Qualifications for and Value of Vouchers- A voucher issued under the Program shall have a value that may be applied to offset the purchase price or lease price for a qualifying

lease of a new fuel efficient automobile as follows:

(1) $3,500 VALUE- The voucher may be used to offset the purchase price or lease price of the new fuel efficient automobile by $3,500 if--

(A) the new fuel efficient automobile is a passenger automobile and the combined fuel economy value of such automobile is at least 4 miles per gallon higher than the

combined fuel economy value of the eligible trade-in vehicle;

(B) the new fuel efficient automobile is a category 1 truck and the combined fuel economy value of such truck is at least 2 miles per gallon higher than the combined fuel

economy value of the eligible trade-in vehicle;

(C) the new fuel efficient automobile is a category 2 truck that has a combined fuel economy value of at least 15 miles per gallon and--

(i) the eligible trade-in vehicle is a category 2 truck and the combined fuel economy value of the new fuel efficient automobile is at least 1 mile per gallon higher than the

combined fuel economy value of the eligible trade-in vehicle; or

(ii) the eligible trade-in vehicle is a category 3 truck of model year 2001 or earlier; or

(D) the new fuel efficient automobile is a category 3 truck and the eligible trade-in vehicle is a category 3 truck of model year of 2001 or earlier and is of similar size or larger

than the new fuel efficient automobile as determined in a manner prescribed by the Secretary.

(2) $4,500 VALUE- The voucher may be used to offset the purchase price or lease price of the new fuel efficient automobile by $4,500 if--

(A) the new fuel efficient automobile is a passenger automobile and the combined fuel economy value of such automobile is at least 10 miles per gallon higher than the

combined fuel economy value of the eligible trade-in vehicle;

(B) the new fuel efficient automobile is a category 1 truck and the combined fuel economy value of such truck is at least 5 miles per gallon higher than the combined fuel

economy value of the eligible trade-in vehicle; or

(C) the new fuel efficient automobile is a category 2 truck that has a combined fuel economy value of at least 15 miles per gallon and the combined fuel economy value of

such truck is at least 2 miles per gallon higher than the combined fuel economy value of the eligible trade-in vehicle and the eligible trade-in vehicle is a category 2 truck.

(c) Program Specifications-

(1) LIMITATIONS-

(A) GENERAL PERIOD OF ELIGIBILITY- A voucher issued under the Program shall be used only for the purchase or qualifying lease of new fuel efficient automobiles that

occur between March 30, 2009, and March 31, 2010.

(B) NUMBER OF VOUCHERS PER PERSON AND PER TRADE-IN VEHICLE- Not more than 1 voucher may be issued for a single person and not more than 1 voucher may

be issued for the joint registered owners of a single eligible trade-in vehicle.

(C) NO COMBINATION OF VOUCHERS- Only 1 voucher issued under the Program may be applied toward the purchase or qualifying lease of a single new fuel efficient

automobile.

(D) CAP ON FUNDS FOR CATEGORY 3 TRUCKS- Not more than 7.5 percent of the total funds made available for the Program shall be used for vouchers for the purchase

or qualifying lease of category 3 trucks.

(E) COMBINATION WITH OTHER INCENTIVES PERMITTED- The availability or use of a Federal, State, or local incentive or a State-issued voucher for the purchase or lease

of a new fuel efficient automobile shall not limit the value or issuance of a voucher under the Program to any person otherwise eligible to receive such a voucher.

(F) NO ADDITIONAL FEES- A dealer participating in the program may not charge a person purchasing or leasing a new fuel efficient automobile any additional fees

associated with the use of a voucher under the Program.

(G) NUMBER AND AMOUNT- The total number and value of vouchers issued under the Program may not exceed the amounts appropriated for such purpose.

(2) DISPOSITION OF ELIGIBLE TRADE-IN VEHICLES-

(A) IN GENERAL- For each eligible trade-in vehicle, the title of which is transferred to a dealer under the Program, the dealer shall certify to the Secretary, in such manner as

the Secretary shall prescribe by rule, that the vehicle, including the engine and drive train--

(i) will be crushed or shredded within such period and in such manner as the Secretary prescribes, or will be transferred to an entity that will ensure that the vehicle will

be crushed or shredded within such period and in such manner as the Secretary prescribes; and

(ii) has not been, and will not be, sold, leased, exchanged, or otherwise disposed of for use as an automobile in the United States or in any other country, or has been or

will be transferred, in such manner as the Secretary prescribes, to an entity that will ensure that the vehicle has not been, and will not be, sold, leased, exchanged, or otherwise

disposed of for use as an automobile in the United States or in any other country.

(B) SAVINGS PROVISION- Nothing in subparagraph (A) may be construed to preclude a person who dismantles or disposes of the vehicle from--

(i) selling any parts of the disposed vehicle other than the engine block and drive train (unless the engine or drive train has been crushed or shredded); or

(ii) retaining the proceeds from such sale.

(C) COORDINATION- The Secretary shall coordinate with the Attorney General to ensure that the National Motor Vehicle Title Information System and other publicly

accessible and commercially available systems are appropriately updated to reflect the crushing or shredding of vehicles under this section and appropriate re-classification of the

vehicles' titles.

(3) ELIGIBLE PURCHASES OR LEASES PRIOR TO DATE OF ENACTMENT- A person who purchased or leased a new fuel efficient vehicle after March 30, 2009, and before the

date of enactment of this section is eligible for a cash rebate equivalent to the amount described in subsection (b)(1) if the person provides proof satisfactory to the Secretary that--

(A) the person was the registered owner of an eligible trade-in vehicle; and

(B) such vehicle has been disposed of in accordance with clauses (i) and (ii) of paragraph (2)(A).

(d) Regulations- Notwithstanding the requirements of section 553 of title 5, United States Code, the Secretary shall promulgate final regulations to implement the Program not

later than 30 days after the date of the enactment of this section. Such regulations shall--

(1) provide for a means of certifying dealers for participation in the program;

(2) establish procedures for the reimbursement of dealers participating in the Program to be made through electronic transfer of funds for both the amount of the vouchers and

any reasonable administrative costs incurred by the dealer as soon as practicable but no longer than 10 days after the submission of a voucher for the new fuel efficient automobile to

the Secretary;

(3) prohibit a dealer from using the voucher to offset any other rebate or discount offered by that dealer or the manufacturer of the new fuel efficient automobile;

(4) require dealers to disclose to the person trading in an eligible trade in vehicle the best estimate of the scrappage value of such vehicle and to permit the dealer to retain $50

of any amounts paid to the dealer for scrappage of the automobile as payment for any administrative costs to the dealer associated with participation in the Program;

(5) establish a process by which persons who qualify for a rebate under subsection (c)(3) may apply for such rebate;

(6) consistent with subsection (c)(2), establish requirements and procedures for the disposal of eligible trade-in vehicles and provide such information as may be necessary to

entities engaged in such disposal to ensure that such vehicles are disposed of in accordance with such requirements and procedures, including--

(A) requirements for the removal and appropriate disposition of refrigerants, antifreeze, lead products, mercury switches, and such other toxic or hazardous vehicle

components prior to the crushing or shredding of an eligible trade-in vehicle, in accordance with rules established by the Secretary in consultation with the Administrator, and in

accordance with other applicable Federal or State requirements; and

(B) a mechanism for dealers to certify to the Secretary that eligible trade-in vehicles are disposed of, or transferred to an entity that will ensure that the vehicle is disposed of,

in accordance with such requirements and procedures and to submit the vehicle identification numbers of the vehicles disposed of and the new fuel efficient automobile purchased

with each voucher;

(7) consistent with subsection (c)(2), establish requirements and procedures for the disposal of eligible trade-in vehicles and provide such information as may be necessary to

entities engaged in such disposal to ensure that such vehicles are disposed of in accordance with such requirements and procedures; and

(8) provide for the enforcement of the penalties described in subsection (e).

(e) Anti-Fraud Provisions-

(1) VIOLATION- It shall be unlawful for any person to violate any provision under this section or any regulations issued pursuant to subsection (d).

(2) PENALTIES- Any person who commits a violation described in paragraph (1) shall be liable to the United States Government for a civil penalty of not more than $25,000 for

each violation.

(f) Information to Consumers and Dealers- Not later than 30 days after the date of enactment of this section, and promptly upon the update of any relevant information, the

Secretary shall make available on an Internet website and through other means determined by the Secretary information about the Program, including--

(1) how to determine if a vehicle is an eligible trade-in vehicle;

(2) how to participate in the Program, including how to determine participating dealers; and

(3) a comprehensive list, by make and model, of new fuel efficient automobiles meeting the requirements of the Program.

Once such information is available, the Secretary shall conduct a public awareness campaign to inform consumers about the Program and where to obtain additional information.

(g) Recordkeeping and Report-

(1) DATABASE- The Secretary shall maintain a database of the vehicle identification numbers of all new fuel efficient vehicles purchased or leased and all eligible trade-in

vehicles disposed of under the Program.

(2) REPORT- Not later than June 30, 2010, the Secretary shall submit a report to the Committee on Energy and Commerce of the House of Representatives and the Committee

on Commerce, Science, and Transportation of the Senate describing the efficacy of the Program, including--

(A) a description of program results, including--

(i) the total number and amount of vouchers issued for purchase or lease of new fuel efficient automobiles by manufacturer (including aggregate information concerning

the make, model, model year) and category of automobile;

(ii) aggregate information regarding the make, model, model year, and manufacturing location of vehicles traded in under the Program; and

(iii) the location of sale or lease;

(B) an estimate of the overall increase in fuel efficiency in terms of miles per gallon, total annual oil savings, and total annual greenhouse gas reductions, as a result of the

Program; and

(C) an estimate of the overall economic and employment effects of the Program.

(h) Definitions- As used in this section--

(1) the term `passenger automobile' means a passenger automobile, as defined in section 32901(a)(18) of title 49, United States Code, that has a combined fuel economy

value of at least 22 miles per gallon;

(2) the term `category 1 truck' means a nonpassenger automobile, as defined in section 32901(a)(17) of title 49, United States Code, that has a combined fuel economy value

of at least 18 miles per gallon, except that such term does not include a category 2 truck;

(3) the term `category 2 truck' means a large van or a large pickup, as categorized by the Secretary using the method used by the Environmental Protection Agency and

described in the report entitled `Light-Duty Automotive Technology and Fuel Economy Trends: 1975 through 2008';

(4) the term `category 3 truck' means a work truck, as defined in section 32901(a)(19) of title 49, United States Code;

(5) the term `combined fuel economy value' means--

(A) with respect to a new fuel efficient automobile, the number, expressed in miles per gallon, centered below the words `Combined Fuel Economy' on the label required to

be affixed or caused to be affixed on a new automobile pursuant to subpart D of part 600 of title 40 Code of Federal Regulations;

(B) with respect to an eligible trade-in vehicle, the equivalent of the number described in subparagraph (A), and posted under the words `Estimated New EPA MPG' and

above the word `Combined' for vehicles of model year 1984 through 2007, or posted under the words `New EPA MPG' and above the word `Combined' for vehicles of model year 2008

or later on the fueleconomy.gov website of the Environmental Protection Agency for the make, model, and year of such vehicle; or

(C) with respect to an eligible trade-in vehicle manufactured between model years 1978 through 1984, the equivalent of the number described in subparagraph (A) as

determined by the Secretary (and posted on the website of the National Highway Traffic Safety Administration) using data maintained by the Environmental Protection Agency for the

make, model, and year of such vehicle;

(6) the term `dealer' means a person licensed by a State who engages in the sale of new automobiles to ultimate purchasers;

(7) the term `eligible trade-in vehicle' means an automobile or a work truck (as such terms are defined in section 32901(a) of title 49, United States Code) that, at the time it is

presented for trade-in under this section--

(A) is in drivable condition;

(B) has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such

trade-in; and

(C) has a combined fuel economy value of 18 miles per gallon or less;

(8) the term `new fuel efficient automobile' means an automobile described in paragraph (1), (2), (3), or (4)--

(A) the equitable or legal title of which has not been transferred to any person other than the ultimate purchaser;

(B) that carries a manufacturer's suggested retail price of $45,000 or less;

(C) that--

(i) for new fuel efficient automobiles weighing up to 8,500 pounds, is certified to applicable standards under section 86.1811-04 of title 40, Code of Federal Regulations;

or

(ii) for category 3 trucks, is certified to the applicable vehicle or engine standards under section 86.1816-08, 86-007-11, or 86.008-10 of title 40, Code of Federal

Regulations; and

(D) that has the combined fuel economy value of--

(i) 22 miles per gallon for a passenger automobile;

(ii) 18 miles per gallon for a category 1 truck; and

(iii) 15 miles per gallon for a category 2 truck;

(9) the term `Program' means the Cash for Clunkers Temporary Vehicle Trade-in Program established by this section;

(10) the term `qualifying lease' means a lease of an automobile for a period of not less than 5 years;

(11) the term `scrappage value' means the amount received by the dealer for a vehicle upon transferring title of such vehicle to the person responsible for ensuring the

dismantling and destroying the vehicle;

(12) the term `Secretary' means the Secretary of Transportation acting through the National Highway Traffic Safety Administration;

(13) the term `ultimate purchaser' means, with respect to any new automobile, the first person who in good faith purchases such automobile for purposes other than resale;

and

(14) the term `vehicle identification number' means the 17 character number used by the automobile industry to identify individual automobiles.

(i) Authorization of Appropriations- There is authorized to be appropriated to the Secretary $4,000,000,000 to carry out this section.

SEC. 129. DIESEL EMISSIONS REDUCTION.

Subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 16131 et seq.) is amended--

(1) in the matter preceding clause (i) in section 791(3)(B), by inserting `in any State' after `nonprofit organization or institution';

(2) in section 791(9), by striking `The term `State' includes the District of Columbia.' and inserting `The term `State' includes the District of Columbia, American Samoa, Guam,

the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.'; and

(3) in section 793(c)--

(A) in paragraph (2)(A), by striking `51 States' and inserting `56 States';

(B) in paragraph (2)(A), by striking `1.96 percent' and inserting `1.785 percent';

(C) in paragraph (2)(B), by striking `51 States' and inserting `56 States'; and

(D) in paragraph (2)(B), by amending clause (ii) to read as follows:

`(ii) the amount of funds remaining after each State described in paragraph (1) receives the 1.785-percent allocation under this paragraph.'.

SEC. 130. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL PIPELINES.

(a) Definitions- Section 1701 of the Energy Policy Act of 2005 (42 U.S.C. 16511) is amended by adding at the end the following:

`(6) RENEWABLE FUEL- The term `renewable fuel' has the meaning given the term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), except that the term shall

include all ethanol and biodiesel.

`(7) RENEWABLE FUEL PIPELINE- The term `renewable fuel pipeline' means a common carrier pipeline for transporting renewable fuel.'.

(b) Renewable Fuel Pipeline Eligibility- Section 1703(b) the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding at the end the following:

`(11) Renewable fuel pipelines.'.

Subtitle D--State Energy and Environment Development Accounts

SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.

(a) Definitions- In this section:

(1) SEED ACCOUNT- The term `SEED Account' means a State Energy and Environment Development Account established pursuant to this section.

(2) STATE ENERGY OFFICE- The term `State Energy Office' means a State entity eligible for grants under part D of title III of the Energy Policy and Conservation Act (42 U.S.C.

6321 et seq.).

(b) Establishment of Program- The Administrator shall establish a program under which a State, through its State Energy Office or other State agency designated by the State, may

operate a State Energy and Environment Development Account.

(c) Purpose- The purpose of each SEED Account is to serve as a common State-level repository for managing and accounting for emission allowances provided to States

designated for renewable energy and energy efficiency purposes.

(d) Regulations- Not later than one year after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out this section, including regulations--

(1) to ensure that each State operates its SEED Account and any subaccounts thereof efficiently and in accordance with this Act and applicable State and Federal laws;

(2) to prevent waste, fraud, and abuse;

(3) to indicate the emission allowances that may be deposited in a State's SEED Account pending distribution or use;

(4) to indicate the programs and objectives authorized by Federal law for which emission allowances in a SEED Account may be distributed or used;

(5) to identify the forms of financial assistance and incentives that States may provide through distribution or use of SEED Accounts; and

(6) to prescribe the form and content of reports that the States are required to submit under this section on the use of SEED Accounts.

(e) Operation-

(1) DEPOSITS-

(A) IN GENERAL- In the allowance tracking system established pursuant to section 724(d) of the Clean Air Act, the Administrator shall establish a SEED Account for each

State and place in it the allowances allocated pursuant to section 782(g) of the Clean Air Act to be distributed to States pursuant to sections 132 and 201 of this Act.

(B) FINANCIAL ACCOUNT- A State may create a financial account associated with its SEED Account to deposit, retain, and manage any proceeds of any sale of any

allowance provided pursuant to this Act pending expenditure or disbursement of those proceeds for purposes permitted under this section. The funds in such an account shall not be

commingled with other funds not derived from the sale of allowances provided to the State; however, loans made by the State from such funds pursuant to paragraph (2)(C)(i) may be

repaid into such a financial account, including any interest charged.

(2) WITHDRAWALS-

(A) IN GENERAL- All allowances distributed pursuant to sections 132 and 201, including the proceeds of any sale of such allowances, shall support renewable energy and

energy efficiency programs authorized or approved by the Federal Government.

(B) DEDICATED ALLOWANCES- Allowances distributed pursuant to sections 132 and 201 that are required by law to be used for specific purposes for a specified period

shall be used according to those requirements during that period.

(C) UNDEDICATED ALLOWANCES- To the extent that allowances distributed pursuant to sections 132 and 201 are not required by law to be used for specific purposes for

a specified period as described in subparagraph (B), such allowances or the proceeds of their sale may be used for any of the following purposes:

(i) LOANS- Loans of allowances, or the proceeds from the sale of allowances, may be provided, interest on commercial loans may be subsidized at an interest rate as

low as zero, and other credit support may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency

purpose authorized or approved by the Federal Government.

(ii) GRANTS- Grants of allowances or the proceeds of their sale may be provided to support programs authorized to use SEED Account allowance value or any other

renewable energy or energy efficiency purpose authorized or approved by the Federal Government.

(iii) OTHER FORMS OF SUPPORT- Allowances or the proceeds of the sale of allowances may be provided for other forms of support for programs authorized to use

SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.

(iv) ADMINISTRATIVE COSTS- Except to the extent provided in Federal law authorizing or allocating allowances deposited in a SEED Account, not more than 5 percent of

the allowance value in a SEED Account in any year may be used to cover administrative expenses of the SEED Account.

(D) SUBACCOUNTS- A State may request that the Administrator establish accounts for local governments that request such subaccounts to hold allowances distributed to

local governments for renewable energy or energy efficiency programs authorized or approved by the Federal Government.

(E) INTENDED USE PLANS-

(i) IN GENERAL- After providing for public review and comment, each State administering a SEED Account shall annually prepare a plan that identifies the intended uses

of the allowances or proceeds from the sale of allowances in its SEED Account.

(ii) CONTENTS- An intended use plan shall include--

(I) a list of the projects or programs for which withdrawals from the SEED Account are intended in the next fiscal year that begins after the date of the plan, including a

description of each project;

(II) the relationship of each of the projects or programs to an identified Federal purpose authorized by this Act, or any other Federal statute;

(III) the expected terms of use of allowance value to provide assistance;

(IV) the criteria and methods established for the distribution of allowances or allowance value;

(V) a description of the equivalent financial value and status of the SEED Account; and

(VI) a statement of the mid-term and long-term goals of the State for use of its SEED Account.

(3) ACCOUNTABILITY AND TRANSPARENCY-

(A) CONTROLS AND PROCEDURES- Any State that has a SEED Account shall establish fiscal controls and recordkeeping and accounting procedures for the SEED

Account sufficient to ensure proper accounting during appropriate accounting periods for distributions into the SEED Account, transfers from the SEED Account, and SEED Account

balances, including any related financial accounts. Such controls and procedures shall conform to generally accepted government accounting principles. Any State that has a SEED

Account shall retain records for a period of at least 5 years.

(B) AUDITS- Any State that has a SEED Account shall have an annual audit conducted of the SEED Account by an independent public accountant in accordance with

generally accepted auditing standards, and shall transmit the results of that audit to the Administrator.

(C) STATE REPORT- Each State administering a SEED Account shall make publicly available and submit to the Administrator a report every 2 years on its activities related

to its SEED Account.

(D) PUBLIC INFORMATION- Any--

(i) controls and procedures established under subparagraph (A); and

(ii) information obtained through audits conducted under subparagraph (B), except to the extent that it would be protected from disclosure, if it were information held by

the Federal Government, under section 552(b) of title 5, United States Code,

shall be made publicly available.

(E) OTHER PROTECTIONS- The Administrator shall require such additional procedures and protections as are necessary to ensure that any State that has a SEED Account

will operate the SEED Account in an accountable and transparent manner.

(f) Requirements for Eligibility- A State's eligibility to receive allowances in its SEED Account shall depend on that State's compliance with the requirements of this Act (and the

amendments made by this Act).

(g) Authorization of Appropriations- There are authorized to be appropriated to the Administrator such sums as may be necessary for SEED Account operations.

SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAMS.

(a) Definitions- For purposes of this section:

(1) COST-EFFECTIVE- The term `cost-effective', with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that

the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than

the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.

(2) RENEWABLE ENERGY RESOURCE- The term `renewable energy resource' shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies

Act of 1978 (as added by section 101 of this Act).

(b) Distribution Among States- For each vintage year from 2012 through 2050, the Administrator shall, in accordance with this section, distribute emission allowances allocated

pursuant to section 782(g)(1) of the Clean Air Act not later than September 30 of the year preceding the vintage year. The Administrator shall distribute the emission allowances to

States for renewable energy and energy efficiency programs to be deposited in and administered through the State Energy and Environment Development (SEED) Accounts

established pursuant to section 131. The Administrator shall distribute allowances among the States under this section each year in accordance with the following formula:

(1) One third of the allowances shall be divided equally among the States.

(2) One third of the allowances shall be distributed ratably among the States based on the population of each State, as contained in the most recent reliable census data

available from the Bureau of the Census, Department of Commerce, for all States at the time the Administrator calculates the formula for distribution.

(3) One third of the allowances for shall be distributed ratably among the States on the basis of the energy consumption of each State as contained in the most recent State

Energy Data Report available from the Energy Information Administration (or such alternative reliable source as the Administrator may designate).

(c) Uses- The allowances distributed to each State pursuant to this section shall be used exclusively for the purposes listed in this subsection, as set forth below:

(1) Not less than 12.5 percent shall be distributed by the State to units of local government within such State to be used exclusively to support the energy efficiency and

renewable energy purposes listed in paragraphs (2), (3), and (4).

(2) Not less than 15 percent shall be used exclusively for the following energy efficiency purposes:

(A) Implementation and enforcement of building codes adopted in compliance with section 201.

(B) Implementation of the energy efficient manufactured homes program established pursuant to section 203.

(C) Implementation of the building energy performance labeling program established pursuant to section 204.

(D) Enabling the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381)) for State, local

government, and other public buildings and facilities, including integration of renewable energy resources and distributed generation, demand response, demand side management,

and systems analysis.

(E) Transportation planning pursuant to section 841 of the Clean Air Act.

(F) Low-income community energy efficiency programs that are consistent with the grant program established under section 264 of this Act.

(G) Other cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane, including, where appropriate, programs

or mechanisms administered by local governments and entities other than the State.

(3) Not less than 5 percent shall be used exclusively for implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to

section 202.

(4) Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, and interest rate buy-downs

for--

(A) re-equipping, expanding, or establishing a manufacturing facility that receives certification from the Secretary of Energy pursuant to section 1302 of the American

Recovery and Reinvestment Act of 2009 for the production of--

(i) property designed to be used to produce energy from renewable energy sources; and

(ii) electricity storage systems;

(B) deployment of technologies to generate electricity from renewable energy sources; and

(C) deployment of facilities or equipment, such as solar panels, to generate electricity or thermal energy from renewable energy resources in and on buildings in an urban

environment.

(5) The remaining 47.5 percent shall be used exclusively for any of the purposes described in subparagraphs (A) through (F) of paragraph (2) and in paragraphs (3) and (4),

provided that each State receiving emission allowances under this section shall use not less than 1 percent of such allowances for the purpose described in paragraph (2)(F).

(d) Reporting- Each State receiving emission allowances under this section shall include in its biennial reports required under section 131, in accordance with such requirements

as the Administrator may prescribe--

(1) a list of entities receiving allowances or allowance value under this section;

(2) the amount and nature of allowances or allowance value received by each recipient;

(3) the specific purposes for which such allowances or allowance value was conveyed;

(4) the amount of energy savings, emission reductions, renewable energy deployment, or new or retooled manufacturing capacity resulting from such allowances or allowance

value; and

(5) an assessment of the cost-effectiveness of any energy efficiency program supported under subsection (c)(2)(F).

(e) Enforcement- If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold up to twice the number of allowances that the

State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld

pursuant to this subsection shall be distributed among the remaining States in accordance with the requirements of subsection (b).

Subtitle E--Smart Grid Advancement

SEC. 141. DEFINITIONS.

For purposes of this subtitle:

(1) The term `applicable baseline' means the average of the highest three annual peak demands a load-serving entity has experienced during the 5 years immediately prior to

the date of enactment of this Act.

(2) The term `Commission' means Federal Energy Regulatory Commission.

(3) The term `load-serving entity' means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such

entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.

(4) The term `peak demand' means the highest point of electricity demand, net of any distributed electricity generation or storage from sources on the load-serving entity's

customers' premises, during any hour on the system of a load serving entity during a calendar year, expressed in Megawatts (MW), or more than one such high point as a function of

seasonal demand changes.

(5) The term `peak demand reduction' means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW), whether

accomplished by diminishing the end-use requirements for electricity or by use of locally stored or generated electricity to meet those requirements from distributed resources on the

load-serving entity's customers' premises and without use of high-voltage transmission.

(6) The term `peak demand reduction plan' means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals.

(7) The term `peak period' means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to

maintain system reliability while meeting peak demand.

(8) The term `Secretary' means the Secretary of Energy.

(9) The term `Smart Grid' has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 (15 U.S.C. 17381).

SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.

(a) Assessment- Within one year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart

Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as

Energy Star products.

(b) Analysis- (1) Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings,

greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection (a) in the following optimal

circumstances:

(A) The products possessed Smart Grid capability and interoperability that is tested and proven reliable.

(B) The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products.

(C) The utility's rates reflected national average costs, including average peak and valley seasonal and daily electricity costs.

(D) Consumers using such products took full advantage of such capability.

(E) The utility avoided incremental investments and rate increases related to such savings.

(2) The analysis under paragraph (1) shall be considered the `best case' Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the

Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term `cost effective'

means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product's expected useful life will be greater

than the incremental cost of the Smart Grid features included in the product.

(3) To the extent that including Smart Grid capability in any products analyzed under paragraph (2) is found to be cost effective in the best case, the Secretary and the Administrator

shall, not later than 3 years after the date of enactment of this Act take each of the following actions:

(A) Inform the manufacturer of such product of such finding of cost effectiveness.

(B) Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability.

(C) Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the

Energy Star program.

(D) Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings.

(E) Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that

could result if Smart Grid capability were installed and utilized on such products.

SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE LABELS.

Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at the end:

`(J)(i) Not later than 3 years after the date of enactment of this subparagraph, the Federal Trade Commission shall initiate a rulemaking to consider making a special note

in a prominent manner on any ENERGY GUIDE label for any product actually including Smart Grid capability that--

`(I) Smart Grid capability is a feature of that product;

`(II) the use and value of that feature depended on the Smart Grid capability of the utility system in which the product was installed and the active utilization of that feature

by the customer; and

`(III) on a utility system with Smart Grid capability, the use of the product's Smart Grid capability could reduce the customer's cost of the product's annual operation by an

estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such Smart Grid

capability.

`(ii) Not later than 3 years after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).'.

SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.

(a) Goals- Not later than one year after the date of enactment of this Act, load-serving entities, or, at their option, States with respect to load-serving entities that they regulate, shall

determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of 250 megawatts.

(b) Baselines- (1) The Commission, in consultation with the Secretary and the Administrator, shall develop and publish, after an opportunity for public comment, a methodology to

provide for adjustments or normalization to a load-serving entity's applicable baseline over time to reflect changes in the number of customers served, weather conditions, general

economic conditions, and any other appropriate factors external to peak demand management, as determined by the Commission.

(2) The Commission shall support load-serving entities (including any load-serving entities with an applicable baseline of less than 250 megawatts that volunteer to participate in

achieving the purposes of this section) in determining their applicable baselines, and in developing their peak demand reduction goals.

(3) The Secretary, in consultation with the Commission, the Administrator, and the North American Electric Reliability Corporation, shall develop a system and rules for

measurement and verification of demand reductions.

(c) Peak Demand Reduction Goals- (1) Peak demand reduction goals may be established for an individual load-serving entity, or, at the determination of a State or regional entity,

by that State or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.

(2) A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory

commissions, State energy offices, the North American Electric Reliability Corporation, and other relevant authorities.

(3) In determining the applicable peak demand reduction goals, States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential

Assessment, as authorized by section 571 of the National Energy Conservation Policy Act (42 U.S.C. 8279).

(4) The applicable peak demand reduction goals shall provide that--

(A) load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year

2012;

(B) load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar

year 2015; and

(C) the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive

effort to deploy Smart Grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).

(d) Plan- Each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following

options:

(1) Direct reduction in megawatts of peak demand through energy efficiency measures (including efficient transmission wire technologies which significantly reduce line loss

compared to traditional wire technology) with reliable and continued application during peak demand periods.

(2) Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or

more of the following:

(A) Megawatts enrolled in demand response programs.

(B) Megawatts subject to the ability of a load-serving entity to call on demand response programs, smart appliances, smart electricity storage devices, distributed

generation resources on the entity's customers' premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (`dynamic

peak management control').

(C) Megawatts available from distributed dynamic electricity storage under agreement with the owner of that storage.

(D) Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations.

(E) Megawatts available from smart appliances and equipment with Smart Grid capability available for direct control by the utility through agreement with the customer

owning the appliances or equipment.

(F) Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions

are directly related to solar radiation and accompanying heat.

(3) If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load-serving entity must

demonstrate this capability by operating a test during the applicable calendar year.

(4) Nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for

competitive or other reasons or that identifies individual customers.

(e) Existing Authority and Requirements- Nothing in this section diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or

regulation respecting peak demand management, demand response, distributed storage, use of distributed generation, or the regulation of load-serving entities. The Commission,

in consultation with States having such peak management, demand response and distributed storage programs, shall to the maximum extent practicable, facilitate coordination

between the Federal program and such State programs.

(f) Relief- The Commission may, for good cause, grant relief to load-serving entities from the requirements of this section.

(g) Other Laws- Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.

(h) Compliance- (1) The Commission shall within one year after the date of enactment of this Act establish a public website where the Commission will provide information and

data demonstrating compliance by States, regional entities, and load-serving entities with this section, including the success of load-serving entities in meeting applicable peak

demand reduction goals.

(2) The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this section and success in meeting applicable peak

demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.

(3) The Commission shall note in each such report any State, political subdivision of a State, or load-serving entity that has failed to comply with this section, or is not a part of any

region or group of load-serving entities serving a region that has complied with this section.

(4) The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept

adjustments to them as appropriate when sought by load-serving entities.

(i) Assistance to States and Funding-

(1) ASSISTANCE TO STATES- Any costs incurred by States for activities undertaken pursuant to this section shall be supported by the use of emission allowances allocated to

the States' SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that

shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(2) FUNDING- There are authorized to be appropriated such sums as may be necessary to the Commission, the Secretary, and the Administrator to carry out the provisions of

this section.

SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION PROGRAM TO INCLUDE SMART GRID INFORMATION.

(a) In General- Section 134 of the Energy Policy Act of 2005 (42 U.S.C. 15832) is amended as follows:

(1) By amending the section heading to read as follows: `energy efficiency and smart grid public information initiative'.

(2) In paragraph (1) of subsection (a) by striking `reduce energy consumption during the 4-year period beginning on the date of enactment of this Act' and inserting `increase

energy efficiency and to adopt Smart Grid technology and practices'.

(3) In paragraph (2) of subsection (a) by striking `benefits to consumers of reducing' and inserting `economic and environmental benefits to consumers and the United States

of optimizing'.

(4) In subsection (a) by inserting at the beginning of paragraph (3) `the effect of energy efficiency and Smart Grid capability in reducing energy and electricity prices throughout

the economy, together with'.

(5) In subsection (a)(4) by redesignating subparagraph (D) as (E), by striking `and' at the end of subparagraph (C), and by inserting after subparagraph (C) the following:

`(D) purchasing and utilizing equipment that includes Smart Grid features and capability; and'.

(6) In subsection (c), by striking `Not later than July 1, 2009,' and inserting, `For each year when appropriations pursuant to the authorization in this section exceed

$10,000,000,'.

(7) In subsection (d) by striking `2010' and inserting `2020'.

(8) In subsection (e) by striking `2010' and inserting `2020'.

(b) Table of Contents- The item relating to section 134 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:

`Sec. 134. Energy efficiency and Smart Grid public information initiative.'.

SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.

(a) Amendments- Section 124 of the Energy Policy Act of 2005 (42 U.S.C. 15821) is amended as follows:

(1) By amending the section heading to read as follows: `energy efficient and smart appliance rebate program.'.

(2) By redesignating paragraphs (4) and (5) of subsection (a) as paragraphs (5) and (6), respectively, and inserting after paragraph (3) the following:

`(4) SMART APPLIANCE- The term `smart appliance' means a product that the Administrator of the Environmental Protection Agency or the Secretary of Energy has determined

qualifies for such a designation in the Energy Star program pursuant to section 142 of the American Clean Energy and Security Act of 2009, or that the Secretary or the Administrator

has separately determined includes the relevant Smart Grid capabilities listed in section 1301 of the Energy Independence and Security Act of 2007 (15 U.S.C. 17381).'.

(3) In subsection (b)(1) by inserting `and smart' after `efficient' and by inserting after `products' the first place it appears `, including products designated as being smart

appliances'.

(4) In subsection (b)(3), by inserting `the administration of' after `carry out'.

(5) In subsection (d), by inserting `the administration of' after `carrying out' and by inserting `, and up to 100 percent of the value of the rebates provided pursuant to this section'

before the period at the end.

(6) In subsection (e)(3), by inserting `, with separate consideration as applicable if the product is also a smart appliance,' after `Energy Star product' the first place it appears

and by inserting `or smart appliance' before the period at the end.

(7) In subsection (f), by striking `$50,000,000' through the period at the end and inserting `$100,000,000 for each fiscal year from 2010 through 2015.'.

(b) Table of Contents- The item relating to section 124 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:

`Sec. 124. Energy efficient and smart appliance rebate program.'.

Subtitle F--Transmission Planning

SEC. 151. TRANSMISSION PLANNING.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding after section 216 the following new section:

`SEC. 216A. TRANSMISSION PLANNING.

`(a) Federal Policy-

`(1) OBJECTIVES- It is the policy of the United States that regional electric grid planning should facilitate the deployment of renewable and other zero-carbon energy sources for

generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, and providing for cost-effective electricity services

throughout the United States.

`(2) OPTIONS- In addition to the policy under paragraph (1), it is the policy of the United States that regional electric grid planning to meet these objectives should take into

account all significant demand-side and supply-side options, including energy efficiency, distributed generation, renewable energy and zero-carbon electricity generation

technologies, smart-grid technologies and practices, demand response, electricity storage, voltage regulation technologies, high capacity conductors with at least 25 percent greater

efficiency than traditional ACSR (aluminum stranded conductors steel reinforced) conductors, superconductor technologies, underground transmission technologies, and new

conventional electric transmission capacity and corridors.

`(b) Planning-

`(1) PLANNING PRINCIPLES- Not later than 1 year after the date of enactment of this section, the Commission shall adopt, after notice and opportunity for comment, national

electricity grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future transmission planning that may implicate

interstate transmission of electricity.

`(2) REGIONAL PLANNING ENTITIES- Not later than 3 months after the date of adoption by the Commission of national electricity grid planning principles pursuant to

paragraph (1), entities that conduct or may conduct transmission planning pursuant to State or Federal law or regulation, including States, entities designated by States, public utility

transmission providers, operators and owners, regional organizations, and electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted

by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans to the Commission.

`(3) COORDINATION OF REGIONAL PLANNING ENTITIES- The Commission shall encourage regional planning entities described under paragraph (2) to cooperate and

coordinate across regions and to harmonize regional electric grid planning with planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission

shall work with States, public utilities transmission providers, load-serving entities, transmission operators, and other organizations to resolve any conflict or competition among

proposed planning entities in order to build consensus and promote the Federal policy established under subsection (a). The Commission shall seek to ensure that planning that is

consistent with the national electricity grid planning principles adopted pursuant to paragraph (1) is conducted in all regions of the United States and the territories.

`(4) RELATION TO EXISTING PLANNING POLICY- In implementing the Federal policy established under subsection (a), the Commission shall--

`(A) incorporate any ongoing planning efforts undertaken pursuant to section 217; and

`(B) consult with and invite the participation of the Secretary of Energy in relationship to the Secretary's duties pursuant to section 216.

`(5) ASSISTANCE-

`(A) IN GENERAL- The Commission shall provide support to and participate in the regional grid planning processes conducted by regional planning entities. The

Commission may provide planning resources and assistance as required or as requested by regional planning entities, including system data, cost information, system analysis,

technical expertise, modeling support, dispute resolution services, and other assistance to regional planning entities, as appropriate.

`(B) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.

`(6) CONFLICT RESOLUTION- In the event that regional grid plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to

achieve the objectives of the Federal policy established under subsection (a).

`(7) SUBMISSION OF PLANS- The Commission shall require regional planning entities to submit initial regional electric grid plans to the Commission not later than 18 months

after the date the Commission promulgates national electricity grid planning principles pursuant to paragraph (1). Regional electric grid plans should, in general, be developed from

sub-regional requirements and plans, including planning input reflecting individual utility service areas. Regional plans may then in turn be combined into larger regional plans, up to

interconnection-wide and national plans, as appropriate and necessary as determined by the Commission. The Commission shall review such plans for consistency with the

national grid planning principles and may return a plan to one or more planning entities for further consideration, along with the Commission's own recommendations for resolution

of any conflict or for improvement. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission's website.

`(8) MULTI-REGIONAL MEETINGS- As regional grid plans are submitted to the Commission, the Commission may convene multi-regional meetings to discuss regional grid

plan consistency and integration, including requirements for multi-regional projects, and to resolve any conflicts that emerge from such multi-regional projects. The Commission

shall provide its recommendations for eliminating any inter-regional conflicts.

`(9) REPORT TO CONGRESS- Not later than 3 years after the date of enactment of this section, the Commission shall provide a report to Congress containing the results of

the regional grid planning process, including summaries of the adopted regional plans. The Commission shall provide an electronic version of its report on its website with links to

all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any conflicts not resolved during the planning

process. The Commission shall make any recommendations to Congress on the appropriate Federal role or support required to address the needs of the electric grid, including

recommendations for addressing any needs that are beyond the reach of existing State and Federal authority.'.

SEC. 152. NET METERING FOR FEDERAL AGENCIES.

(a) Standard- Subsection (b) of section 113 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is amended by adding the following new paragraph at the end

thereof:

`(6) NET METERING FOR FEDERAL AGENCIES- Each electric utility shall offer to arrange (either directly or through a third party) to make interconnection and net metering

available to Federal Government agencies, offices, or facilities in accordance with the requirements of section 115(j). The standard under this paragraph shall apply only to electric

utilities that sold over 4,000,000 megawatt hours of electricity in the preceding year to the ultimate consumers thereof. In the case of a standard under this paragraph, a period of 1

year after the date of the enactment of this section shall be substituted for the 2-year period referred to in other provisions of this section.'.

(b) Special Rules- Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding the following new subsection at the end thereof:

`(j) Net Metering for Federal Agencies- (1) The standard under paragraph (6) of section 113(b) shall require that rates and charges and contract terms and conditions for the sale

of electric energy to the Federal Government or agency shall be the same as the rates and charges and contract terms and conditions that would be applicable if the agency did not

own or operate a qualified generation unit and use a net metering system.

`(2)(A) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall arrange to provide to the Government office or agency that qualifies for net

metering an electrical energy meter capable of net metering and measuring, to the maximum extent practicable, the flow of electricity to or from the customer, using a single meter

and single register, the cost of which shall be recovered from the customer.

`(B) In a case in which it is not practicable to provide a meter under subparagraph (A), the utility (either directly or through a third party) shall, at the expense of the utility install 1 or

more of those electric energy meters.

`(3)(A) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall calculate the electric energy consumption for the Government office or agency

using a net metering system that meets the requirements of this subsection and paragraph (6) of section 113(b) and shall measure the net electricity produced or consumed during

the billing period using the metering installed in accordance with this paragraph.

`(B) If the electricity supplied by the retail electric supplier exceeds the electricity generated by the Government office or agency during the billing period, the Government office or

agency shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practices.

`(C) If electric energy generated by the Government office or agency exceeds the electric energy supplied by the retail electric supplier during the billing period, the Government

office or agency shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with the credit

appearing as a kilowatt-hour credit on the bill for the following billing period.

`(D) Any kilowatt-hour credits provided to the Government office or agency as provided in this subsection shall be applied to the Government office or agency electric energy

consumption on the following billing period bill (except for a billing period that ends in the next calendar year). At the beginning of each calendar year, any unused kilowatt-hour credits

remaining from the preceding year will carry over to the new year.

`(4) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall offer a meter and retail billing arrangement that has time-differentiated rates.

The kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time-of-use rate, or the credits shall be reflected on the bill of the Government

office or agency as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator.

`(5) The standard under paragraph (6) of section 113(b) shall require that the qualified generation unit, interconnection standards, and net metering system used by the

Government office or agency shall meet all applicable safety and performance and reliability standards established by the National Electrical Code, the Institute of Electrical and

Electronics Engineers, Underwriters Laboratories, and the American National Standards Institute.

`(6) The standard under paragraph (6) of section 113(b) shall require that electric utilities shall not make additional charges, including standby charges, for equipment or services

for safety or performance that are in addition to those necessary to meet the other standards and requirements of this subsection and paragraph (6) of section 113(b).

`(7) For purposes of this subsection and paragraph (6) of section 113(b):

`(A) The term `Government' means any office, facility, or agency of the Federal Government.

`(B) The term `customer-generator' means the owner or operator of a electricity generation unit.

`(C) The term `electric generation unit' means any renewable electric generation unit that is owned, operated, or sited on a Federal Government facility.

`(D) The term `net metering' means the process of--

`(i) measuring the difference between the electricity supplied to a customer-generator and the electricity generated by the customer-generator that is delivered to a utility at

the same point of interconnection during an applicable billing period; and

`(ii) providing an energy credit to the customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of electricity produced by the customer-generator from an

electric generation unit.'.

(c) Savings Provision- If this section or a portion of this section is determined to be invalid or unenforceable, that shall not affect the validity or enforceability of any other provision of

this Act.

SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC TRANSMISSION MANUFACTURING PLANTS, QUALIFIED HIGH EFFICIENCY TRANSMISSION PROPERTY, AND

QUALIFIED ADVANCED ELECTRIC TRANSMISSION PROPERTY.

(a) Loan Guarantees Prior to September 30, 2011- Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 16515(a)), as added by section 406 of the American Recovery and

Reinvestment Act of 2009 (Public Law 109-58; 119 Stat. 594) is amended by adding the following new paragraph at the end thereof:

`(5) The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a

qualified high efficiency transmission property or a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities).

For purposes of this paragraph:

`(A) The term `qualified advanced electric transmission property' means any high voltage electric transmission cable, related substation, converter station, or other

integrated facility that--

`(i) utilizes advanced ultra low resistance superconductive material or other advanced technology that has been determined by the Secretary of Energy as--

`(I) reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;

`(II) capable of reliably transmitting at least 5 gigawatts of high-voltage electric energy for distances greater than 300 miles with energy losses not exceeding 3

percent of the total power transported; and

`(III) not creating an electromagnetic field;

`(ii) has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and

`(iii) can be located safely and economically in a permanent underground right of way not to exceed 25 feet in width.

The term `qualified advanced electric transmission property' shall not include any property placed in service after December 31, 2016.

`(B)(i) The term `qualified high efficiency transmission property' means any high voltage overhead electric transmission line, related substation, or other integrated facility

that--

`(I) utilizes advanced conductor core technology that--

`(aa) has been determined by the Secretary of Energy as reasonably likely to become commercially viable within 10 years after the date of enactment of this

paragraph;

`(bb) is suitable for use on transmission lines up to 765kV; and

`(cc) exhibits power losses at least 30 percent lower than that of transmission lines using conventional `ACSR' conductors;

`(II) has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and

`(III) can be located safely and economically in a right of way not to exceed that used by conventional `ACSR' conductors; and

`(ii) The term `qualified high efficiency transmission property' shall not include any property placed in service after December 31, 2016.

`(C) The term `qualified advanced electric transmission manufacturing plant' means any industrial facility located in the United States which can be equipped, re-equipped,

expanded, or established to produce in whole or in part qualified advanced electric transmission property.'.

(b) Additional Loan Guarantee Authority- Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding the following new paragraph at the end of

subsection (b):

`(12) The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of

a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph, the terms

`qualified advanced electric transmission property' and `qualified advanced electric transmission manufacturing plant' have the meanings provided by section 1705(a)(5).'.

(c) Grants- The Secretary of Energy is authorized to provide grants for up to 50 percent of costs incurred in connection with the development, construction, acquisition of

components for, or engineering of a qualified advanced electric transmission property defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C.

16515(a)). Such grants may only be made to the first project which qualifies under that paragraph. There are authorized to be appropriated for purposes of this subsection not more

than $100,000,000 for fiscal year 2010. The United States shall take no equity or other ownership interest in the qualified advanced electric transmission manufacturing plant or

qualified advanced electric transmission property for which funding is provided under this subsection.

Subtitle G--Technical Corrections to Energy Laws

SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND SECURITY ACT OF 2007.

(a) Title III--Energy Savings Through Improved Standards for Appliance and Lighting- (1) Section 325(u) of the Energy Policy and Conservation Act (42 U.S.C. 6295(u)) (as

amended by section 301(c) of the Energy Independence and Security Act of 2007 (121 Stat. 1550)) is amended--

(A) by redesignating paragraph (7) as paragraph (4); and

(B) in paragraph (4) (as so redesignated), by striking `supplies is' and inserting `supply is'.

(2) Section 302 of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended--

(A) in subsection (a), by striking `end of the paragraph' and inserting `end of subparagraph (A)'; and

(B) in subsection (b), by striking `6313(a)' and inserting `6314(a)'.

(3) Section 343(a)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(1)) (as amended by section 302(b) of the Energy Independence and Security Act of 2007 (121

Stat. 1551)) is amended--

(A) by striking `TEST PROCEDURES' and all that follows through `At least once' and inserting `TEST PROCEDURES- At least once'; and

(B) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left).

(4) Section 342(a)(6) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(6)) (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007 (121

Stat. 1554)) is amended--

(A) in subparagraph (B)--

(i) by striking `If the Secretary' and inserting the following:

`(i) IN GENERAL- If the Secretary';

(ii) by striking `clause (ii)(II)' and inserting `subparagraph (A)(ii)(II)';

(iii) by striking `clause (i)' and inserting `subparagraph (A)(i)'; and

(iv) by adding at the end the following:

`(ii) FACTORS- In determining whether a standard is economically justified for the purposes of subparagraph (A)(ii)(II), the Secretary shall, after receiving views and

comments furnished with respect to the proposed standard, determine whether the benefits of the standard exceed the burden of the proposed standard by, to the maximum extent

practicable, considering--

`(I) the economic impact of the standard on the manufacturers and on the consumers of the products subject to the standard;

`(II) the savings in operating costs throughout the estimated average life of the product in the type (or class) compared to any increase in the price of, or in the initial

charges for, or maintenance expenses of, the products that are likely to result from the imposition of the standard;

`(III) the total projected quantity of energy savings likely to result directly from the imposition of the standard;

`(IV) any lessening of the utility or the performance of the products likely to result from the imposition of the standard;

`(V) the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard;

`(VI) the need for national energy conservation; and

`(VII) other factors the Secretary considers relevant.

`(iii) ADMINISTRATION-

`(I) ENERGY USE AND EFFICIENCY- The Secretary may not prescribe any amended standard under this paragraph that increases the maximum allowable energy

use, or decreases the minimum required energy efficiency, of a covered product.

`(II) UNAVAILABILITY-

`(aa) IN GENERAL- The Secretary may not prescribe an amended standard under this subparagraph if the Secretary finds (and publishes the finding) that interested persons have

established by a preponderance of the evidence that a standard is likely to result in the unavailability in the United States in any product type (or class) of performance characteristics

(including reliability, features, sizes, capacities, and volumes) that are substantially the same as those generally available in the United States at the time of the finding of the

Secretary.

`(bb) OTHER TYPES OR CLASSES- The failure of some types (or classes) to meet the criterion established under this subclause shall not affect the determination of the Secretary on

whether to prescribe a standard for the other types or classes.'; and

(B) in subparagraph (C)(iv), by striking `An amendment prescribed under this subsection' and inserting `Notwithstanding subparagraph (D), an amendment prescribed under

this subparagraph'.

(5) Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation Act (as added by section 306(c) of the Energy Independence and Security Act of 2007) is transferred and

redesignated as clause (vi) of section 342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007).

(6) Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) (as amended by sections 312(a)(2) and 314(a) of the Energy Independence and Security Act of 2007

(121 Stat. 1564, 1569)) is amended by redesignating paragraphs (22) and (23) (as added by section 314(a) of that Act) as paragraphs (23) and (24), respectively.

(7) Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) (as amended by section 312(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1567))

is amended--

(A) by striking `subparagraphs (B) through (G)' each place it appears and inserting `subparagraphs (B), (C), (D), (I), (J), and (K)';

(B) by striking `part A' each place it appears and inserting `part B'; and

(C) in subsection (h)(3), by striking `section 342(f)(3)' and inserting `section 342(f)(4)'.

(8) Section 340(13) of the Energy Policy and Conservation Act (42 U.S.C. 6311(13)) (as amended by section 313(a) of the Energy Independence and Security Act of 2007 (121 Stat.

1568)) is amended--

(A) by striking subparagraphs (A) and (B) and inserting the following:

`(A) IN GENERAL- The term `electric motor' means any motor that is--

`(i) a general purpose T-frame, single-speed, foot-mounting, polyphase squirrel-cage induction motor of the National Electrical Manufacturers Association, Design A and

B, continuous rated, operating on 230/460 volts and constant 60 Hertz line power as defined in NEMA Standards Publication MG1-1987; or

`(ii) a motor incorporating the design elements described in clause (i), but is configured to incorporate one or more of the following variations--

`(I) U-frame motor;

`(II) NEMA Design C motor;

`(III) close-coupled pump motor;

`(IV) footless motor;

`(V) vertical solid shaft normal thrust motor (as tested in a horizontal configuration);

`(VI) 8-pole motor; or

`(VII) poly-phase motor with a voltage rating of not more than 600 volts (other than 230 volts or 460 volts, or both, or can be operated on 230 volts or 460 volts, or

both).'; and

(B) by redesignating subparagraphs (C) through (I) as subparagraphs (B) through (H), respectively.

(9)(A) Section 342(b) of the Energy Policy and Conservation Act (42 U.S.C. 6313(b)) is amended--

(i) in paragraph (1), by striking `paragraph (2)' and inserting `paragraph (3)';

(ii) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4);

(iii) by inserting after paragraph (1) the following:

`(2) STANDARDS EFFECTIVE BEGINNING DECEMBER 19, 2010-

`(A) IN GENERAL- Except for definite purpose motors, special purpose motors, and those motors exempted by the Secretary under paragraph (3) and except as provided for

in subparagraphs (B), (C), and (D), each electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or

after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-12.

`(B) FIRE PUMP ELECTRIC MOTORS- Except for those motors exempted by the Secretary under paragraph (3), each fire pump electric motor manufactured with power

ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency that is not less

than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.

`(C) NEMA DESIGN B ELECTRIC MOTORS- Except for those motors exempted by the Secretary under paragraph (3), each NEMA Design B electric motor with power ratings

of more than 200 horsepower, but not greater than 500 horsepower, manufactured (alone or as a component of another piece of equipment) on or after December 19, 2010, shall

have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.

`(D) MOTORS INCORPORATING CERTAIN DESIGN ELEMENTS- Except for those motors exempted by the Secretary under paragraph (3), each electric motor described in

section 340(13)(A)(ii) manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have

a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.'; and

(iv) in paragraph (3) (as redesignated by clause (ii)), by striking `paragraph (1)' each place it appears in subparagraphs (A) and (D) and inserting `paragraphs (1) and (2)'.

(B) Section 313 of the Energy Independence and Security Act of 2007 (121 Stat. 1568) is repealed.

(C) The amendments made by--

(i) subparagraph (A) shall take effect on December 19, 2010; and

(ii) subparagraph (B) shall take effect on December 19, 2007.

(10) Section 321(30)(D)(i)(III) of the Energy Policy and Conservation Act (42 U.S.C. 6291(30)(D)(i)(III)) (as amended by section 321(a)(1)(A) of the Energy Independence and

Security Act of 2007 (121 Stat. 1574)) is amended by inserting before the semicolon the following: `or, in the case of a modified spectrum lamp, not less than 232 lumens and not

more than 1,950 lumens'.

(11) Section 321(30)(T) of the Energy Policy and Conservation Act (42 U.S.C. 6291(30)(T) (as amended by section 321(a)(1)(B) of the Energy Independence and Security Act of

2007 (121 Stat. 1574)) is amended--

(A) in clause (i)--

(i) by striking the comma after `household appliance' and inserting `and'; and

(ii) by striking `and is sold at retail,'; and

(B) in clause (ii), by inserting `when sold at retail,' before `is designated'.

(12) Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) (as amended by sections 321(a)(3)(A) and 322(b) of the Energy Independence and Security Act of

2007 (121 Stat. 1577, 1588)) is amended by striking subsection (i) and inserting the following:

`(i) General Service Fluorescent Lamps, General Service Incandescent Lamps, Intermediate Base Incandescent Lamps, Candelabra Base Incandescent Lamps, and

Incandescent Reflector Lamps-

`(1) ENERGY EFFICIENCY STANDARDS-

`(A) IN GENERAL- Each of the following general service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base

incandescent lamps, and incandescent reflector lamps manufactured after the effective date specified in the tables listed in this subparagraph shall meet or exceed the following

lamp efficacy, new maximum wattage, and CRI standards:

`FLUORESCENT LAMPS

-------------------------------------------------------------------------------------------------------------------------------------

Lamp Type Nominal Lamp Wattage Minimum CRI Minimum Average Lamp Efficacy (LPW) Effective Date (Period of Months)

-------------------------------------------------------------------------------------------------------------------------------------

4-foot medium bi-pin >35 W 69 75.0 36

45 75.0 36

2-foot U-shaped >35 W 69 68.0 36

45 64.0 36

8-foot slimline 65 W 69 80.0 18

45 80.0 18

8-foot high output >100 W 69 80.0 18

45 80.0 18

-------------------------------------------------------------------------------------------------------------------------------------

`INCANDESCENT REFLECTOR LAMPS

-------------------------------------------------------------------------------------------

Nominal Lamp Wattage Minimum Average Lamp Efficacy (LPW) Effective Date (Period of 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

-------------------------------------------------------------------------------------------

`GENERAL SERVICE INCANDESCENT LAMPS

-------------------------------------------------------------------------------

Rated Lumen Ranges Maximum Rated Wattage Minimum Rated Lifetime Effective 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

-------------------------------------------------------------------------------

Rated Lumen Ranges Maximum Rated Wattage Minimum Rated Lifetime Effective 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

-------------------------------------------------------------------------------

`(B) APPLICATION-

`(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- Effective beginning January 1, 2012, a candelabra base incandescent lamp shall not exceed 60 rated watts.

`(ii) INTERMEDIATE BASE INCANDESCENT LAMPS- Effective beginning January 1, 2012, an intermediate base incandescent lamp shall not exceed 40 rated watts.

`(D) EXEMPTIONS-

`(i) STATUTORY EXEMPTIONS- The standards specified in subparagraph (A) 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.

`(ii) ADMINISTRATIVE 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 subclause (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 clause, 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--

`(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 in part 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) EFFECTIVE DATES-

`(i) IN GENERAL- In this paragraph, except as otherwise provided in a table contained in subparagraph (A) or in clause (ii), the term `effective date' means the last day of

the month specified in the table that follows October 24, 1992.

`(ii) SPECIAL EFFECTIVE DATES-

`(I) ER, BR, AND BPAR LAMPS- The standards specified in subparagraph (A) 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, or the date that is 180 days after the date of enactment of the Energy

Independence and Security Act of 2007.

`(II) LAMPS BETWEEN 2.25-2.75 INCHES IN DIAMETER- The standards specified in subparagraph (A) 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.

`(2) COMPLIANCE WITH EXISTING LAW- Notwithstanding section 332(a)(5) and section 332(b), it shall not be unlawful for a manufacturer to sell a lamp that is in compliance

with the law at the time the lamp was manufactured.

`(3) RULEMAKING BEFORE OCTOBER 24, 1995-

`(A) IN GENERAL- Not later than 36 months after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than the end of

the 54-month period beginning on October 24, 1992, to determine whether the standards established under paragraph (1) should be amended.

`(B) ADMINISTRATION- The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period

beginning on the date on which the final rule is published.

`(4) RULEMAKING BEFORE OCTOBER 24, 2000-

`(A) IN GENERAL- Not later than 8 years after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than 9 years and 6

months after October 24, 1992, to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended.

`(B) ADMINISTRATION- The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period

beginning on the date on which the final rule is published.

`(5) RULEMAKING FOR ADDITIONAL GENERAL SERVICE FLUORESCENT LAMPS-

`(A) IN GENERAL- Not later than the end of the 24-month period beginning on the date labeling requirements under section 324(a)(2)(C) become effective, the Secretary

shall--

`(i) initiate a rulemaking procedure to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended so that the

standards would be applicable to additional general service fluorescent lamps; and

`(ii) publish, not later than 18 months after initiating the rulemaking, a final rule including the amended standards, if any.

`(B) ADMINISTRATION- The rule shall provide that the amendment shall apply to products manufactured after a date which is 36 months after the date on which the rule is

published.

`(6) STANDARDS FOR GENERAL SERVICE LAMPS-

`(A) RULEMAKING BEFORE JANUARY 1, 2014-

`(i) IN 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; and

`(II) the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded 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 STANDARDS- If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final

rule not later than January 1, 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 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 manufacture

of any general service lamp that does not meet a minimum efficacy standard of 45 lumens per watt.

`(vi) STATE PREEMPTION- Neither section 327(c) 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 GENERAL- Not later than January 1, 2020, the Secretary shall initiate a rulemaking procedure to determine whether--

`(I) standards in effect for general service lamps should be amended; and

`(II) the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales data collected by the Secretary from

manufacturers.

`(ii) SCOPE- The rulemaking shall not be limited to incandescent lamp technologies.

`(iii) AMENDED STANDARDS- If the Secretary determines that the standards in effect for general service 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 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.

`(7) FEDERAL ACTIONS-

`(A) COMMENTS OF SECRETARY-

`(i) IN GENERAL- With respect to any lamp to which standards are applicable under this subsection or any lamp specified in section 346, the Secretary shall inform any

Federal entity proposing actions that would adversely impact the energy consumption or energy efficiency of the lamp of the energy conservation consequences of the action.

`(ii) CONSIDERATION- The Federal entity shall carefully consider the comments of the Secretary.

`(B) AMENDMENT OF STANDARDS- Notwithstanding section 325(n)(1), the Secretary shall not be prohibited from amending any standard, by rule, to permit increased

energy use or to decrease the minimum required energy efficiency of any lamp to which standards are applicable under this subsection if the action is warranted as a result of other

Federal action (including restrictions on materials or processes) that would have the effect of either increasing the energy use or decreasing the energy efficiency of the product.

`(8) COMPLIANCE-

`(A) IN GENERAL- Not later than the date on which standards established pursuant to this subsection become effective, or, with respect to high-intensity discharge lamps

covered under section 346, the effective date of standards established pursuant to that section, each manufacturer of a product to which the standards are applicable shall file with

the Secretary a laboratory report certifying compliance with the applicable standard for each lamp type.

`(B) CONTENTS- The report shall include the lumen output and wattage consumption for each lamp type as an average of measurements taken over the preceding

12-month period.

`(C) OTHER LAMP TYPES- With respect to lamp types that are not manufactured during the 12-month period preceding the date on which the standards become effective,

the report shall--

`(i) be filed with the Secretary not later than the date that is 12 months after the date on which manufacturing is commenced; and

`(ii) include the lumen output and wattage consumption for each such lamp type as an average of measurements taken during the 12-month period.'.

(13) Section 325(l)(4)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)(4)(A)) (as amended by section 321(a)(3)(B) of the Energy Independence and Security Act of

2007 (121 Stat. 1581)) is amended by striking `only'.

(14) Section 327(b)(1)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6297(b)(1)(B)) (as amended by section 321(d)(3) of the Energy Independence and Security Act of

2007 (121 Stat. 1585)) is amended--

(A) in clause (i), by inserting `and' after the semicolon at the end;

(B) in clause (ii), by striking `; and' and inserting a period; and

(C) by striking clause (iii).

(15) Section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586) is amended--

(A) in the matter preceding paragraph (1), by striking `is amended' and inserting `(as amended by section 306(b)) is amended'; and

(B) by striking paragraphs (1) and (2) and inserting the following:

`(1) in paragraph (5), by striking `or' after the semicolon at the end;

`(2) in paragraph (6), by striking the period at the end and inserting `; or'; and'.

(16) Section 332(a) of the Energy Policy and Conservation Act (42 U.S.C. 6302(a)) (as amended by section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat.

1586)) is amended by redesignating the second paragraph (6) as paragraph (7).

(17) Section 321(30)(C)(ii) of the Energy Policy and Conservation Act (42 U.S.C. 6291(30)(C)(ii)) (as amended by section 322(a)(1)(B) of the Energy Independence and Security Act

of 2007 (121 Stat. 1587)) is amended by inserting a period after `40 watts or higher'.

(18) Section 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1588)) is amended by striking `6995(i)' and inserting `6295(i)'.

(19) Section 327(c) of the Energy Policy and Conservation Act (42 U.S.C. 6297(c)) (as amended by sections 324(f) of the Energy Independence and Security Act of 2007 (121 Stat.

1594)) is amended--

(A) in paragraph (6), by striking `or' after the semicolon at the end;

(B) in paragraph (8)(B), by striking `and' after the semicolon at the end;

(C) in paragraph (9)--

(i) by striking `except that--' and all that follows through `if the Secretary fails to issue' and inserting `except that if the Secretary fails to issue';

(ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left); and

(iii) by striking the period at the end and inserting a semicolon; and

(D) by adding at the end the following:

`(10) is a regulation for general service lamps that conforms with Federal standards and effective dates;

`(11) is an energy efficiency standard for general service lamps enacted into law by the State of Nevada prior to December 19, 2007, if the State has not adopted the Federal

standards and effective dates pursuant to subsection (b)(1)(B)(ii); or'.

(20) Section 325(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1596)) is amended by striking `6924(c)' and inserting `6294(c)'.

(b) Title IV--Energy Savings in Buildings and Industry- (1) Section 401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17061) is amended--

(A) in paragraph (2), by striking `484' and inserting `494'; and

(B) in paragraph (13), by striking `Agency' and inserting `Administration'.

(2) Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) (as amended by section 411(a) of the Energy Independence and Security Act of 2007 (121 Stat.

1600)) is amended by striking 1 of the 2 periods at the end of paragraph (5).

(3) Section 305(a)(3)(D)(i) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)(i)) (as amended by section 433(a) of the Energy Independence and Security Act

of 2007 (121 Stat. 1612)) is amended--

(A) in subclause (I)--

(i) by striking `in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy

Information Agency' and inserting `as measured by the calendar year 2003 Commercial Buildings Energy Consumption Survey or the calendar year 2005 Residential Energy

Consumption Survey data from the Energy Information Administration'; and

(ii) in the table at the end, by striking `Fiscal Year' and inserting `Calendar Year'; and

(B) in subclause (II)--

(i) by striking `(II) Upon petition' and inserting the following:

`(II) DOWNWARD ADJUSTMENT OF NUMERIC REQUIREMENT-

`(aa) IN GENERAL- On petition'; and

(ii) by striking the last sentence and inserting the following:

`(bb) EXCEPTIONS TO REQUIREMENT FOR CONCURRENCE OF SECRETARY-

`(AA) IN GENERAL- The requirement to petition and obtain the concurrence of the Secretary under this subclause shall not apply to any Federal building 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, or to any other Federal building designed,

constructed, or renovated by the Administrator if the Administrator certifies, in writing, that meeting the applicable numeric requirement under subclause (I) with respect to the Federal

building would be technically impracticable in light of the specific functional needs for the building.

`(BB) ADJUSTMENT- In the case of a building described in subitem (AA), the Administrator may adjust the applicable numeric requirement of subclause (I) downward with respect to

the building.'.

(4) Section 436(c)(3) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(c)(3)) is amended by striking `474' and inserting `494'.

(5) Section 440 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17096) is amended by striking `and 482'.

(6) Section 373(c) of the Energy Policy and Conservation Act (42 U.S.C. 6343(c)) (as amended by section 451(a) of the Energy Independence and Security Act of 2007 (121 Stat.

1628)) is amended by striking `Administrator' and inserting `Secretary'.

(c) Date of Enactment- Section 1302 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17382) is amended in the first sentence by striking `enactment' and inserting

`the date of enactment of this Act'.

(d) Reference- Section 1306(c)(3) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17386(c)(3)) is amended by striking `section 1307 (paragraph (17) of section

111(d) of the Public Utility Regulatory Policies Act of 1978)' and inserting `paragraph (19) of section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))'.

(e) Effective Date- This section and the amendments made by this section take effect as if included in the Energy Independence and Security Act of 2007 (Public Law 110-140; 121

Stat. 1492).

SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.

(a) Title I--Energy Efficiency- Section 325(g)(8)(C)(ii) of the Energy Policy and Conservation Act (42 U.S.C. 6295(g)(8)(C)(ii)) (as added by section 135(c)(2)(B) of the Energy Policy

Act of 2005) is amended by striking `20«F' and inserting `-20«F'.

(b) Effective Date- This section and the amendments made by this section take effect as if included in the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 594).

Subtitle H--Energy and Efficiency Centers

SEC. 171. CLEAN ENERGY INNOVATION CENTERS.

(a) Purpose- The Secretary shall carry out a program to establish Clean Energy Innovation Centers to enhance the Nation's economic, environmental, and energy security by

promoting commercial deployment of clean, indigenous energy alternatives to oil and other fossil fuels, reducing greenhouse gas emissions, and ensuring that the United States

maintains a technological lead in developing and deploying state-of-the-art energy technologies. To achieve these purposes the program shall--

(1) leverage the expertise and resources of the university and private research communities, industry, venture capital, national laboratories, and other participants in energy

innovation to support cross-disciplinary research and development in areas not being served by the private sector in order to develop and transfer innovative clean energy

technologies into the marketplace;

(2) expand the knowledge base and human capital necessary to transition to a low-carbon economy; and

(3) promote regional economic development by cultivating clusters of clean energy technology firms, private research organizations, suppliers, and other complementary

groups and businesses.

(b) Definitions- For purposes of this section:

(1) ALLOWANCE- The term `allowance' means an emission allowance established under section 721 of the Clean Air Act.

(2) CENTER- The term `Center' means a Clean Energy Innovation Center established in accordance with this section.

(3) CLEAN ENERGY TECHNOLOGY- The term `clean energy technology' means a technology that--

(A) produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy resources (as such term is defined in section 610 of the Public

Utility Regulatory Policies Act of 1978);

(B) more efficiently transmits, distributes, or stores energy;

(C) enhances energy efficiency for buildings and industry, including combined heat and power;

(D) enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381)), including integration of

renewable energy resources and distributed generation, demand response, demand side management, and systems analysis;

(E) produces an advanced or sustainable material with energy or energy efficiency applications;

(F) enhances water security through improved water management, conservation, distribution, and end use applications; or

(G) improves energy efficiency for transportation, including electric vehicles.

(4) CLUSTER- The term `cluster' means a concentration of firms directly involved in the research, development, finance, and commercialization of clean energy technologies

whose geographic proximity facilitates utilization and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and

input suppliers.

(5) PROJECT- The term `project' means an activity with respect to which a Center provides support under subsection (e).

(6) QUALIFYING ENTITY- The term `qualifying entity' means each of the following:

(A) A research university.

(B) A State institution with a focus on the advancement of clean energy technologies.

(C) A nongovernmental organization with research or commercialization expertise in clean energy technology development.

(7) SECRETARY- The term `Secretary' means the Secretary of Energy.

(8) TECHNOLOGY FOCUS- The term `technology focus' means the unique technology area in which a Center will specialize, and may include solar electricity, fuels from solar

energy, batteries and energy storage, electricity grid systems and devices, energy efficient building systems and design, advanced materials, modeling and simulation, and other

clean energy technology areas designated by the Secretary.

(9) TRANSLATIONAL RESEARCH- The term `translational research' means clean energy technology research to coordinate basic or applied research with technical and

commercial applications to enable promising discoveries or inventions to attract investment sufficient for market penetration and diffusion.

(c) Role of the Secretary- The Secretary shall--

(1) have ultimate responsibility for, and oversight of, all aspects of the program under this section;

(2) provide for the distribution of allowances to consortia for the establishment of 8 Centers pursuant to this section, with each Center designated a unique technology focus

area;

(3) coordinate the innovation activities of Centers with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research

Projects Agency--Energy, and Energy Frontier Research Centers, and within industry, and to avoid duplication of research, by annually--

(A) issuing guidance regarding national energy research and development priorities and strategic objectives; and

(B) convening a conference of staff of the Department of Energy and representatives from such other entities to share research results, program plans, and opportunities for

collaboration.

(d) Consortium- A consortium shall be eligible to receive allowances to support the establishment of a Center under this section if--

(1) it is composed of--

(A) 2 research universities with a combined annual research budget of $500,000,000; and

(B) no fewer than 1 additional qualifying entity;

(2) its members have established a binding agreement that documents--

(A) the structure of the partnership agreement;

(B) the governance and management structure to enable cost-effective implementation of the program;

(C) an intellectual property management policy;

(D) a conflicts of interest policy consistent with subsection (e)(4);

(E) an accounting structure that meets the requirements of the Department and can be audited under subsection (f)(3); and

(F) that it has an Advisory Board consistent with subsection (e)(3);

(3) it receives financial contributions from States, consortium participants, or other non-Federal sources, to be used pursuant to subsection (e)(2);

(4) it is part of an existing cluster or demonstrates high potential to develop a new cluster; and

(5) it operates as a nonprofit organization.

(e) Clean Energy Innovation Centers-

(1) ROLE- Centers shall provide support to activities leading to commercial deployment of clean energy technologies pursuant to the purposes of this section through

issuance of awards to projects managed by qualifying entities and other entities meeting the Center's project criteria, including national laboratories. Each Center shall--

(A) develop and publish for public review and comment proposed plans, programs, and project selection criteria;

(B) submit an annual report to the Secretary summarizing the Center's activities, organizational expenditures, and Board members, which shall include a certification of

compliance with conflict of interest policies and a description of each project in the research portfolio;

(C) establish policies--

(i) regarding intellectual property developed as a result of Center awards and other forms of technology support that encourage individual ingenuity and invention while

speeding knowledge transfer and facilitating the establishment of rapid commercialization pathways;

(ii) to prevent resources provided to the Center from being used to displace private sector investment likely to otherwise occur, including investment from private sector

entities which are members of the consortium;

(iii) to facilitate the participation of private investment firms or other private entities that invest in clean energy technologies to perform due diligence on award proposals,

to participate in the award review process, and to provide guidance to projects supported by the Center; and

(iv) to facilitate the participation of entrepreneurs with a demonstrated history of commercializing clean energy technologies;

(D) oversee project solicitations, review proposed projects, and select projects for awards; and

(E) monitor project implementation.

(2) USE AND DISTRIBUTION OF AWARDS BY CENTERS- A Center shall allocate awards and other support for--

(A) clean energy technology projects conducting translational research and related activities, at least 40 percent of which shall be utilized for projects related to the Center's

technology focus; and

(B) administrative expenses, which may constitute no more than 10 percent of the award.

(3) ADVISORY BOARDS-

(A) IN GENERAL- Each Center shall establish an Advisory Board whose members shall have extensive and relevant scientific, technical, industry, financial, or research

management expertise. The Advisory Board shall review the Center's proposed plans, programs, project selection criteria, and projects and shall ensure that projects selected for

awards meet the conflict of interest policies of the Center. Advisory Board members other than those representing consortium members shall serve for no more than three years and

must comply with conflict of interest provisions.

(B) MEMBERS- Each Advisory Board shall consist of--

(i) 5 members selected by the consortium's research universities;

(ii) 2 members selected by the consortium's other qualifying entities; and

(iii) 2 members selected at large by other Board members to represent the entrepreneur and venture capital communities.

Individuals appointed under clause (iii) shall not be State or Federal employees or affiliated with the consortium's qualified entities.

(C) NONVOTING MEMBERS- The Board shall also include 1 nonvoting member appointed by the Secretary.

(D) COMPENSATION- Members of an Advisory Board may receive reimbursement for travel expenses and a reasonable stipend.

(4) CONFLICT OF INTEREST-

(A) PROCEDURES- Centers shall establish procedures to ensure that employees or consortia designees for Center activities who are in decisionmaking capacities shall--

(i) disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under paragraph (1), including those of his or her spouse or

minor child, unless such relationships or interests would be considered to be remote or inconsequential; and

(ii) recuse himself or herself from any funding decision for projects in which he or she has a personal financial interest.

(B) DISQUALIFICATION AND REVOCATION- The Secretary may disqualify an application or revoke allowances distributed to the Center or awards provided under paragraph

(1), if cognizant officials of the Center fail to comply with procedures required under subparagraph (A).

(f) Distribution of Allowances to Clean Energy Innovation Centers-

(1) SELECTION AND SCHEDULE- Allowances to support the establishment of a Center shall be distributed through a competitive process. Not later than 120 days after the

date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to establish Centers, which shall be submitted not later than 180 days after the date of

enactment of this Act. The Secretary shall select the program consortia not later than 270 days after the date of enactment of this Act pursuant to subsection (d). The Secretary shall

award 3 grants for the establishment of 3 Centers to be located on the campus of 1890 Land Grant Institution (as defined in section 2 of the Agricultural Research, Extension, and

Education Reform Act of 1998 (7 U.S.C. 7061)).

(2) TERM AND USE OF ALLOWANCES- Allowances distributed to Centers shall be used to provide awards pursuant to subsection (e)(1). The amount of allowances

distributed to support the establishment of a Center under this section shall not be less than 10 and not more than 30 percent of the allowances allocated under section 782(h) of the

Clean Air Act, each year for a 6 year period. Centers shall be eligible to compete for additional allowance distribution after the expiration of the initial period. Centers shall establish

award periods for individual awards. The transfer of allowances to a Center shall occur at the start of each calendar year.

(3) AUDIT- Each Center shall conduct an annual audit to determine the extent to which allowances distributed to the Center, and awards under subsection (e) have been

utilized in a manner consistent with this section. The auditor shall transmit a report of the results of the audit to the Secretary and to the Government Accountability Office. The

Secretary shall include such report in the annual report to Congress, along with a plan to remedy any deficiencies cited in the report. The Government Accountability Office may review

such audits as appropriate and shall have full access to the books, records, and personnel of the Center to ensure that allowances distributed to the Center, and awards made under

subsection (e), have been utilized in a manner consistent with this section.

SEC. 172. BUILDING ASSESSMENT CENTERS.

(a) In General- The Secretary of Energy (in this section referred to as the `Secretary') shall provide funding to institutions of higher education for Building Assessment Centers to--

(1) identify opportunities for optimizing energy efficiency and environmental performance in existing buildings;

(2) promote high-efficiency building construction techniques and materials options;

(3) promote applications of emerging concepts and technologies in commercial and institutional buildings;

(4) train engineers, architects, building scientists, and building technicians in energy-efficient design and operation;

(5) assist local community colleges, trade schools, registered apprenticeship programs and other accredited training programs in training building technicians;

(6) promote research and development for the use of alternative energy sources to supply heat and power, for buildings, particularly energy-intensive buildings; and

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

(b) Coordination With Regional Centers for Energy and Environmental Knowledge and Outreach- A Building Assessment Center may serve as a Center for Energy and

Environmental Knowledge and Outreach established pursuant to section 173.

(c) Coordination and Duplication- The Secretary shall coordinate efforts under this section with other programs of the Department of Energy and other Federal agencies to avoid

duplication of effort.

(d) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out this section $50,000,000 for fiscal year 2010 and each fiscal year thereafter.

SEC. 173. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH.

(a) Regional Centers for Energy and Environmental Knowledge and Outreach-

(1) ESTABLISHMENT- The Secretary shall establish not more than 10 regional Centers for Energy and Environmental Knowledge and Outreach at institutions of higher

education to coordinate with and advise industrial research and assessment centers, Building Assessment Centers, and Clean Energy Application Centers located in the region of

such Center for Energy and Environmental Knowledge and Outreach.

(2) TECHNICAL ASSISTANCE PROGRAMS- Each Center for Energy and Environmental Knowledge and Outreach shall consist of at least one, new or existing, high performing,

of the following:

(A) An industrial research and assessment center.

(B) A Clean Energy Application Center.

(C) A Building Assessment Center.

(3) SELECTION CRITERIA- The Secretary shall select Centers for Energy and Environmental Knowledge and Outreach through a competitive process, based on the following:

(A) Identification of the highest performing industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.

(B) The degree to which an institution of higher education maintains credibility among regional private sector organizations such as trade associations, engineering

associations, and environmental organizations.

(C) The degree to which an institution of higher education is providing or has provided technical assistance, academic leadership, and market leadership in the energy

arena in a manner that is consistent with the areas of focus of industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.

(D) The presence of an additional industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center at the institution of higher

education.

(4) GEOGRAPHIC DIVERSITY- In selecting Centers for Energy and Environmental Knowledge and Outreach under this subsection, the Secretary shall ensure such Centers

are distributed geographically in a relatively uniform manner to ensure all regions of the Nation are represented.

(5) REGIONAL LEADERSHIP- Each Center for Energy and Environmental Knowledge and Outreach shall, to the extent possible, provide leadership to all other industrial

research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers located in the Center's geographic region, as determined by the Secretary.

Such leadership shall include--

(A) developing regional goals specific to the purview of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment

Centers programs;

(B) developing regionally specific technical resources; and

(C) outreach to interested parties in the region to inform them of the information, resources, and services available through the associated industrial research and

assessment centers, Clean Energy Application Centers, and Building Assessment Centers.

(6) FURTHER COORDINATION- To increase the value and capabilities of the regionally associated industrial research and assessment centers, Clean Energy Application

Centers, and Building Assessment Centers programs, Centers for Energy and Environmental Knowledge and Outreach shall--

(A) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Science and Technology;

(B) coordinate with the relevant programs in the Department of Energy, including the Building Technology Program and Industrial Technologies Program;

(C) increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories to achieve the

goals of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers;

(D) work with relevant municipal, county, and State economic development entities to leverage relevant financial incentives for capital investment and other policy tools for

the protection and growth of local business and industry;

(E) partner with local professional and private trade associations and business development interests to leverage existing knowledge of local business challenges and

opportunities;

(F) work with energy utilities and other administrators of publicly funded energy programs to leverage existing energy efficiency and clean energy programs;

(G) identify opportunities for reducing greenhouse gas emissions; and

(H) promote sustainable business practices for those served by the industrial research and assessment centers, Clean Energy Application Centers, and Building

Assessment Centers.

(7) WORKFORCE TRAINING-

(A) IN GENERAL- The Secretary shall require each Center for Energy and Environmental Knowledge and Outreach to establish or maintain an internship program for the

region of such Center, designed to encourage students who perform energy assessments to continue working with a particular company, building, or facility to help implement the

recommendations contained in any such assessment provided to such company, building, or facility. Each Center for Energy and Environmental Knowledge and Outreach shall act

as internship coordinator to help match students to available opportunities.

(B) FEDERAL SHARE- The Federal share of the cost of carrying out internship programs described under subparagraph (A) shall be 50 percent.

(C) FUNDING- Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall use to carry out this paragraph not

less than $5,000,000 for fiscal year 2010 and each fiscal year thereafter.

(8) SMALL BUSINESS LOANS- The Administrator of the Small Business Administration shall, to the maximum practicable, expedite consideration of applications from eligible

small business concerns for loans under the Small Business Act (15 U.S.C. 631 et seq.) for loans to implement recommendations of any industrial research and assessment

center, Clean Energy Application Center, or Building Assessment Center.

(9) DEFINITIONS- In this subsection:

(A) INDUSTRIAL RESEARCH AND ASSESSMENT CENTER- The term `industrial research and assessment center' means a center established or maintained pursuant to

section 452(e) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)).

(B) CLEAN ENERGY APPLICATION CENTER- The term `Clean Energy Application Center' means a center redesignated and described section under section 375 of the

Energy Policy and Conservation Act (42 U.S.C. 6345).

(C) BUILDING ASSESSMENT CENTER- The term `Building Assessment Center' means an institution of higher education-based center established pursuant to section

172.

(D) SECRETARY- The term `Secretary' means the Secretary of Energy.

(10) FUNDING- There are authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2010 and each fiscal year thereafter. Subject to

the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall provide to each Center for Energy and Environmental Knowledge and

Outreach not less than $500,000 for fiscal year 2010 and each fiscal year thereafter.

(b) Integration of Other Technical Assistance Programs-

(1) CLEAN ENERGY APPLICATION CENTERS- Section 375 of the Energy Policy and Conservation Act (42 U.S.C. 6345) is amended--

(A) by redesignating subsection (f) as subsection (g); and

(B) by adding after subsection (e) the following new subsection:

`(f) Coordination With Centers for Energy and Environmental Knowledge and Outreach- A Clean Energy Application Center may serve as a Center for Energy and Environmental

Knowledge and Outreach established pursuant to section 173 of the American Clean Energy and Security Act of 2009.'.

(2) INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS- Section 452(e) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)) is amended--

(A) by striking `The Secretary' and all that follows through `shall be--' and inserting the following:

`(1) IN GENERAL- The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purposes shall be--';

(B) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively (and by moving the margins of such subparagraphs 2 ems to the right); and

(C) by adding at the end the following new paragraph:

`(2) COORDINATION WITH CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH- An industrial research and assessment center may serve as a

Center for Energy and Environmental Knowledge and Outreach established pursuant to section 173 of the American Clean Energy and Security Act of 2009.'.

(c) Additional Funding for Clean Energy Application Centers- Subsection (g) of section 375 of the Energy Policy and Conservation Act (42 U.S.C. 6345(f)), as redesignated by

subsection (b)(1) of this section, is amended by striking `$10,000,000 for each of fiscal years 2008 through 2012' and inserting `$30,000,000 for fiscal year 2010 and each fiscal year

thereafter'.

Subtitle I--Nuclear and Advanced Technologies

SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.

(a) Definition of Conditional Commitment- Section 1701 of the Energy Policy Act of 2005 (42 U.S.C. 16511), as amended by section 130(a) of this Act, is amended by adding after

paragraph (7) the following:

`(8) CONDITIONAL COMMITMENT- The term `conditional commitment' means a final term sheet negotiated between the Secretary and a project sponsor or sponsors, which

term sheet shall be binding on both parties and become a final loan guarantee agreement if all conditions precedent established in the term sheet, which shall include the

acquisition of all necessary permits and licenses, are satisfied.'.

(b) Specific Appropriation or Contribution- Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking subsection (b) and inserting the following:

`(b) Specific Appropriation or Contribution-

`(1) IN GENERAL- No guarantee shall be made unless--

`(A) an appropriation for the cost has been made;

`(B) the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury; or

`(C) a combination of appropriations or payments from the borrower has been made sufficient to cover the cost of the obligation.

`(2) LIMITATION- The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the

Federal Government.'.

(c) Fees- Section 1702(h) of the Energy Policy Act of 2005 (42 U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the following:

`(2) AVAILABILITY- Fees collected under this subsection shall--

`(A) be deposited by the Secretary into a special fund in the Treasury to be known as the `Incentives For Innovative Technologies Fund'; and

`(B) remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.'.

(d) Wage Rate Requirements- Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following new subsection:

`(k) Wage Rate Requirements- No loan guarantee shall be made under this title unless the borrower has provided to the Secretary reasonable assurances that all laborers and

mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the guaranteed loan will be paid wages at rates not

less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the

Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection,

the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United

States Code.'.

SEC. 182. PURPOSE.

The purpose of sections 183 through 189 of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century

through the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and

support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of--

(1) clean energy technologies;

(2) advanced or enabling energy infrastructure technologies;

(3) energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and

(4) manufacturing technologies for any of the technologies or applications described in this section.

SEC. 183. DEFINITIONS.

In this subtitle:

(1) ADMINISTRATION- The term `Administration' means the Clean Energy Deployment Administration established by section 186.

(2) ADVISORY COUNCIL- The term `Advisory Council' means the Energy Technology Advisory Council of the Administration.

(3) BREAKTHROUGH TECHNOLOGY- The term `breakthrough technology' means a clean energy technology that--

(A) presents a significant opportunity to advance the goals developed under section 185, as assessed under the methodology established by the Advisory Council; but

(B) has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.

(4) CLEAN ENERGY TECHNOLOGY- The term `clean energy technology' means a technology related to the production, use, transmission, storage, control, or conservation of

energy--

(A) that will contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions and--

(i) reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with

greater effectiveness through the infrastructure of the United States; or

(ii) diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if

the entire technology system is considered; and

(B) for which, as determined by the Administrator, insufficient commercial lending is available to allow for widespread deployment.

(5) COST- The term `cost' has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(6) DIRECT LOAN- The term `direct loan' has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(7) FUND- The term `Fund' means the Clean Energy Investment Fund established by section 184(a).

(8) LOAN GUARANTEE- The term `loan guarantee' has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(9) NATIONAL LABORATORY- The term `National Laboratory' has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(10) SECRETARY- The term `Secretary' means the Secretary of Energy.

(11) 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.

(12) TECHNOLOGY RISK- The term `technology risk' means the risks during construction or operation associated with the design, development, and deployment of clean

energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that

may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.

SEC. 184. CLEAN ENERGY INVESTMENT FUND.

(a) Establishment- There is established in the Treasury of the United States a revolving fund, to be known as the `Clean Energy Investment Fund', consisting of--

(1) such amounts as are deposited in the Fund under this subtitle; and

(2) such sums as may be appropriated to supplement the Fund.

(b) Authorization of Appropriations- There are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.

(c) Expenditures From Fund-

(1) IN GENERAL- Amounts in the Fund shall be available to the Administrator of the Administration for obligation without fiscal year limitation, to remain available until

expended.

(2) ADMINISTRATIVE EXPENSES-

(A) FEES- Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.

(B) FUND- To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning

of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out this subtitle.

(d) Transfers of Amounts-

(1) IN GENERAL- The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund

on the basis of estimates made by the Secretary of the Treasury.

(2) ADJUSTMENTS- Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required

to be transferred.

SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

(a) Goals- Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment

in the Federal Register near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the

deployment of clean energy technologies through the credit support programs established by section 187 to promote--

(1) sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;

(2) clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from

the volatility of world energy markets;

(3) a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;

(4) installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;

(5) the transformation of the building stock of the United States to zero net energy consumption;

(6) the recovery, use, and prevention of waste energy;

(7) domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;

(8) domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will

become a world leader in environmentally sustainable production of the commodities and materials;

(9) a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, and

demand-response in each regional electric grid;

(10) sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed

generation technology investments with reasonable payback periods; and

(11) such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purpose stated in section 182.

(b) Revisions- The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in

energy policy.

SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

(a) Establishment-

(1) IN GENERAL- There is established in the Department of Energy an administration to be known as the Clean Energy Deployment Administration, under the direction of the

Administrator of the Administration and the Board of Directors.

(2) STATUS-

(A) IN GENERAL- The Administration (including officers, employees, and agents of the Administration) shall not be responsible to, or subject to the authority, direction, or

control of, any other officer, employee, or agent of the Department of Energy other than the Secretary, acting through the Administrator of the Administration.

(B) EXEMPTION FROM REORGANIZATION- The Administration shall be exempt from the reorganization authority provided under section 643 of the Department of Energy

Reorganization Act (42 U.S.C. 7253).

(C) INSPECTOR GENERAL- Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--

(i) in paragraph (1), by inserting `the Administrator of the Clean Energy Deployment Administration;' after `Export-Import Bank;'; and

(ii) in paragraph (2), by inserting `the Clean Energy Deployment Administration,' after `Export-Import Bank,'.

(3) OFFICES-

(A) PRINCIPAL OFFICE- The Administration shall--

(i) maintain the principal office of the Administration in the District of Columbia; and

(ii) for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.

(B) OTHER OFFICES- The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the

business of the Administration.

(b) Administrator-

(1) IN GENERAL- The Administrator of the Administration shall be--

(A) appointed by the President, with the advice and consent of the Senate, for a 5-year term; and

(B) compensated at the annual rate of basic pay prescribed for level II of the Executive Schedule under section 5313 of title 5, United States Code.

(2) DUTIES- The Administrator of the Administration shall--

(A) serve as the Chief Executive Officer of the Administration and Chairman of the Board;

(B) ensure that--

(i) the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the

Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262));

(ii) the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;

(iii) the Administration carries out the purpose stated in section 182 only through activities that are authorized under and consistent with sections 182 through 189; and

(iv) the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;

(C) develop policies and procedures for the Administration that will--

(i) promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;

(ii) promote transparency and openness in Administration operations;

(iii) afford the Administration with sufficient flexibility to meet the purpose stated in section 182; and

(iv) provide for the efficient processing of applications; and

(D) with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 187(c).

(c) Board of Directors-

(1) IN GENERAL- The Board of Directors of the Administration shall consist of--

(A) the Secretary or the designee of the Secretary, who shall serve as an ex-officio voting member of the Board of Directors;

(B) the Administrator of the Administration, who shall serve as the Chairman of the Board of Directors; and

(C) 7 additional members who shall--

(i) be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; and

(ii) have experience in banking, financial services, technology assessment, energy regulation, or risk management, including individuals with substantial experience in

the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.

(2) DUTIES- The Board of Directors shall--

(A) oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;

(B) consult with the Administrator of the Administration on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;

(C) ensure the portfolio of investments are consistent with purpose stated in section 182 and with the long-term financial stability of the Administration;

(D) ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or

financing products; and

(E) not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies

and procedures as necessary.

No member of the Board shall take part in any review or decision of any project as to which that member or member's immediate family has a financial or other interest.

(3) REMOVAL- An appointed member of the Board of Directors may be removed from office by the President for good cause.

(4) VACANCIES- An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term

of the vacating member.

(5) COMPENSATION OF MEMBERS- An appointed member of the Board of Directors shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay

prescribed for level III of the Executive Schedule under section 5314 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the

performance of the duties of the Board of Directors.

(d) Energy Technology Advisory Council-

(1) IN GENERAL- The Administration shall have an Energy Technology Advisory Council consisting of--

(A) 5 members selected by the Secretary; and

(B) 3 members selected by the Board of Directors of the Administration.

(2) QUALIFICATIONS- The members of the Advisory Council shall--

(A) have relevant scientific expertise; and

(B) in the case of the members selected by the Secretary under paragraph (1)(A), include representatives of--

(i) the academic community;

(ii) the private research community;

(iii) National Laboratories;

(iv) the technology or project development community; and

(v) the commercial energy financing and operations sector.

(3) DUTIES- The Advisory Council shall--

(A) develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate

projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which

support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise

would have occurred without the support; and

(B) advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant

to section 185.

(4) TERM-

(A) IN GENERAL- Members of the Advisory Council shall have 5-year staggered terms, as determined by the Secretary and the Administrator of the Administration.

(B) REAPPOINTMENT- A member of the Advisory Council may be reappointed.

(5) COMPENSATION- A member of the Advisory Council, who is not otherwise compensated as a Federal employee, shall be compensated at a rate equal to the daily

equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during

which the member is engaged in the performance of the duties of the Advisory Council.

(e) Staff-

(1) IN GENERAL- The Administrator of the Administration, in consultation with the Board of Directors, may--

(A) appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; and

(B) vest those personnel with such powers and duties as the Administrator of the Administration may determine.

(2) DIRECT HIRE AUTHORITY-

(A) IN GENERAL- Notwithstanding section 3304 and sections 3309 through 3318 of title 5, United States Code, the Administrator of the Administration may, on a

determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified critical personnel with

specialized knowledge important to the function of the Administration into the competitive service.

(B) EXCEPTION- The authority granted under subparagraph (A) shall not apply to positions in the excepted service or the Senior Executive Service.

(C) REQUIREMENTS- In exercising the authority granted under subparagraph (A), the Administrator of the Administration shall ensure that any action taken by the

Administrator of the Administration--

(i) is consistent with the merit principles of section 2301 of title 5, United States Code; and

(ii) complies with the public notice requirements of section 3327 of title 5, United States Code.

(D) TERMINATION OF EFFECTIVENESS- The authority provided by this paragraph terminates effective on the date that is 2 years after the date of enactment of this Act.

(3) CRITICAL PAY AUTHORITY-

(A) IN GENERAL- Notwithstanding section 5377 of title 5, United States Code, and without regard to the provisions of that title governing appointments in the competitive

service or the Senior Executive Service and chapters 51 and 53 of that title (relating to classification and pay rates), the Administrator of the Administration may establish, fix the

compensation of, and appoint individuals to critical positions needed to carry out the functions of the Administration, if the Administrator of the Administration certifies that--

(i) the positions require expertise of an extremely high level in a financial, technical, or scientific field;

(ii) the Administration would not successfully accomplish an important mission without such an individual; and

(iii) exercise of the authority is necessary to recruit an individual who is exceptionally well qualified for the position.

(B) LIMITATIONS- The authority granted under subparagraph (A) shall be subject to the following conditions:

(i) The number of critical positions authorized by subparagraph (A) may not exceed 20 at any 1 time in the Administration.

(ii) The term of an appointment under subparagraph (A) may not exceed 4 years.

(iii) An individual appointed under subparagraph (A) may not have been an Administration employee at any time during the 2-year period preceding the date of

appointment.

(iv) Total annual compensation for any individual appointed under subparagraph (A) may not exceed the highest total annual compensation payable at the rate

determined under section 104 of title 3, United States Code.

(v) An individual appointed under subparagraph (A) may not be considered to be an employee for purposes of subchapter II of chapter 75 of title 5, United States Code.

(C) NOTIFICATION- Each year, the Administrator of the Administration shall submit to Congress a notification that lists each individual appointed under this paragraph.

SEC. 187. DIRECT SUPPORT.

(a) In General- The Administration may issue direct loans, letters of credit, and loan guarantees to deploy clean energy technologies if the Administrator of the Administration has

determined that deployment of the technologies would benefit or be accelerated by the support.

(b) Eligibility Criteria- In carrying out this section and awarding credit support to projects, the Administrator of the Administration shall account for--

(1) how the technology rates based on an evaluation methodology established by the Advisory Council;

(2) how the project fits with the goals established under section 185; and

(3) the potential for the applicant to successfully complete the project.

(c) Risk-

(1) EXPECTED LOAN LOSS RESERVE- The Administrator of the Administration shall establish an expected loan loss reserve to account for estimated losses attributable to

activities under this section that is consistent with the purposes of--

(A) developing breakthrough technologies to the point at which technology risk is largely mitigated;

(B) achieving widespread deployment and advancing the commercial viability of clean energy technologies; and

(C) advancing the goals established under section 185.

(2) INITIAL EXPECTED LOAN LOSS RESERVE- Until such time as the Administrator of the Administration determines sufficient data exist to establish an expected loan loss

reserve that is appropriate, the Administrator of the Administration shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.

(3) PORTFOLIO INVESTMENT APPROACH- The Administration shall--

(A) use a portfolio investment approach to mitigate risk and diversify investments across technologies and ensure that no particular technology is provided more than 30

percent of the financial support available;

(B) to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under

section 185;

(C) consistent with the expected loan loss reserve established under this subsection, the purpose stated in section 182, and section 186(b)(2)(B), provide the maximum

practicable percentage of support to promote breakthrough technologies; and

(D) give the highest priority to investments that promote technologies that will achieve the maximum greenhouse gas emission reductions within a reasonable period of

time per dollar invested and the earliest reductions in greenhouse gas emissions.

(4) LOSS RATE REVIEW-

(A) IN GENERAL- The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.

(B) REPORT- Not later than 90 days after the date of the initiation of the review, the Administrator of the Administration shall submit to the Committee on Energy and Natural

Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the review and any recommended policy

changes.

(5) FEDERAL COST SHARE- A loan guarantee by the Administration shall not exceed an amount equal to 80 percent of the project cost of the facility that is the subject of the

guarantee, as estimated at the time at which the guarantee is issued.

(d) Application Review-

(1) IN GENERAL- To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for

credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.

(2) ENVIRONMENTAL REVIEW- In carrying out this subtitle, the Administration shall, to the maximum extent practicable--

(A) avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); and

(B) with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the

executive branch to develop the most expeditious review process practicable.

(e) Wage Rate Requirements-

(1) IN GENERAL- No credit support shall be issued under this section unless the borrower has provided to the Administrator of the Administration reasonable assurances that

all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages

at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as

determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.

(2) LABOR STANDARDS- With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in

Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.

SEC. 188. FEDERAL CREDIT AUTHORITY.

(a) Payments of Liabilities-

(1) IN GENERAL- Any payment made to discharge liabilities arising from agreements under this subtitle shall be paid out of the Fund or the associated credit account, as

appropriate.

(2) SECURITY- The full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.

(b) Fees-

(1) IN GENERAL- Consistent with achieving the purpose stated in section 182, the Administrator of the Administration shall charge fees or collect compensation generally in

accordance with commercial rates.

(2) AVAILABILITY OF FEES- All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the

Administration, without further appropriation or fiscal year limitation, for use in carrying out the purpose stated in section 182.

(3) BREAKTHROUGH TECHNOLOGIES- The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent

with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.

(4) ALTERNATIVE FEE ARRANGEMENTS- The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable

contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the

Administration.

(c) Cost Transfer Authority- Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit

accounts.

SEC. 189. GENERAL PROVISIONS.

(a) Immunity From Impairment, Limitation, or Restriction-

(1) IN GENERAL- All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any

obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under--

(A) any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject

or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; or

(B) any administrative or other action that becomes effective after the acquisition.

(2) STATE LAW- The Administrator of the Administration may conduct the business of the Administration without regard to any qualification or law of any State relating to

incorporation.

(b) Use of Other Agencies- With the consent of a department, establishment, or instrumentality (including any field office), the Administration may--

(1) use and act through any department, establishment, or instrumentality; and

(2) use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.

(c) Procurement- The Administrator of the Administration shall be the senior procurement officer for the Administration for purposes of section 16(a) of the Office of Federal

Procurement Policy Act (41 U.S.C. 414(a)).

(d) Financial Matters-

(1) INVESTMENTS- Funds of the Administration may be invested in such investments as the Board of Directors may prescribe.

(2) FISCAL AGENTS- Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator of the Administration there is outstanding

a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator of the Administration as a depositary or

custodian or as a fiscal or other agent of the Administration.

(e) Jurisdiction- Notwithstanding section 1349 of title 28, United States Code, or any other provision of law--

(1) the Administration shall be considered a corporation covered by sections 1345 and 1442 of title 28, United States Code;

(2) all civil actions to which the Administration is a party shall be considered to arise under the laws of the United States, and the district courts of the United States shall have

original jurisdiction of all such actions, without regard to amount or value; and

(3) any civil or other action, case or controversy in a court of a State, or in any court other than a district court of the United States, to which the Administration is a party may at

any time before trial be removed by the Administration, without the giving of any bond or security and by following any procedure for removal of causes in effect at the time of the

removal--

(A) to the district court of the United States for the district and division embracing the place in which the same is pending; or

(B) if there is no such district court, to the district court of the United States for the district in which the principal office of the Administration is located.

(f) Periodic Reports- Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator of the Administration shall

submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a

description of--

(1) the technologies supported by activities of the Administration and how the activities advance the purpose stated in section 182; and

(2) the performance of the Administration on meeting the goals established under section 185.

(g) Audits by the Comptroller General-

(1) IN GENERAL- The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the

United States under such rules and regulations as may be prescribed by the Comptroller General.

(2) ACCESS- The representatives of the Government Accountability Office shall--

(A) have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things,

or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and

necessary to facilitate the audit;

(B) be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;

(C) be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the

audit without cost to the Comptroller General; and

(D) have the right of access of the Comptroller General to such information pursuant to section 716(c) of title 31, United States Code.

(3) ASSISTANCE AND COST-

(A) IN GENERAL- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by

contract, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or

for special purposes.

(B) REIMBURSEMENT-

(i) IN GENERAL- On the request of the Comptroller General, the Administration shall reimburse the Government Accountability Office for the full cost of any audit

conducted by the Comptroller General under this subsection.

(ii) CREDITING- Such reimbursements shall--

(I) be credited to the appropriation account entitled `Salaries and Expenses, Government Accountability Office' at the time at which the payment is received; and

(II) remain available until expended.

(h) Annual Independent Audits-

(1) IN GENERAL- The Administrator of the Administration shall--

(A) have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted

auditing standards; and

(B) submit to the Secretary the results of the audit.

(2) CONTENT- In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the

Administration--

(A) are presented fairly in accordance with generally accepted accounting principles; and

(B) comply with any disclosure requirements imposed under this subtitle.

(i) Financial Reports-

(1) IN GENERAL- The Administrator of the Administration shall submit to the Secretary annual and quarterly reports of the financial condition and operations of the

Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.

(2) CONTENTS OF ANNUAL REPORTS- Each annual report shall include--

(A) financial statements prepared in accordance with generally accepted accounting principles;

(B) any supplemental information or alternative presentation that the Secretary may require; and

(C) an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the

Administration, of--

(i) the effectiveness of the internal control structure and procedures of the Administration; and

(ii) the compliance of the Administration with applicable safety and soundness laws.

(3) SPECIAL REPORTS- The Secretary may require the Administrator of the Administration to submit other reports on the condition (including financial condition), management,

activities, or operations of the Administration, as the Secretary considers appropriate.

(4) ACCURACY- Each report of financial condition shall contain a declaration by the Administrator of the Administration or any other officer designated by the Board of Directors

of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.

(5) AVAILABILITY OF REPORTS- Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.

(j) Scope and Termination of Authority-

(1) NEW OBLIGATIONS- The Administrator of the Administration shall not initiate any new obligations under this subtitle on or after January 1, 2029.

(2) REVERSION TO SECRETARY- The authorities and obligations of the Administration shall revert to the Secretary on January 1, 2029.

Subtitle J--Miscellaneous

SEC. 191. STUDY OF OCEAN RENEWABLE ENERGY AND TRANSMISSION PLANNING AND SITING.

(a) Definitions- In this section:

(1) MARINE SPATIAL PLAN- The term `marine spatial plan' means the analysis and allocation of ocean space for various uses to achieve ecological, economic, and social

objectives, based on the principle of ecosystem-based management.

(2) MARINE SPATIAL PLANNING- The term `marine spatial planning' means the process of developing a marine spatial plan.

(3) ECOSYSTEM-BASED MANAGEMENT- The term `ecosystem-based management' means a management approach that ensures the future ecological and economic

sustainability of natural resources by--

(A) accounting for all ecosystem interactions and direct, indirect, and cumulative impacts of human activities on the ecosystem;

(B) emphasizing protection of ecosystem structure, functions, patterns, and processes; and

(C) maintaining ecosystems in a healthy and resilient condition.

(4) OFFSHORE RENEWABLE ENERGY- The term `offshore renewable energy' means energy generated from offshore wind or offshore hydrokinetic (wave, tidal, ocean current,

and tidal-current) energy technologies.

(5) OFFSHORE RENEWABLE ENERGY FACILITY- The term `offshore renewable energy facility' means a facility that generates offshore renewable energy or any offshore

transmission line associated with such facility.

(b) Study-

(1) IN GENERAL- As soon as practicable after the date of enactment of this section, the Federal Energy Regulatory Commission, the Secretary of the Interior, and the National

Oceanic and Atmospheric Administration, in consultation with the Council on Environmental Quality and, as appropriate, coastal States, regional organizations of coastal States, and

relevant nongovernmental organizations, shall jointly conduct a study of the potential for marine spatial planning to facilitate the development of offshore renewable energy facilities in

a manner that protects and maintains coastal and marine ecosystem health.

(2) REQUIREMENTS- The study under paragraph (1) shall include--

(A) identification of the steps involved in regional marine spatial planning for the siting of offshore renewable energy facilities;

(B) a recommended approach for the development of regional marine spatial plans for the siting of offshore renewable energy facilities that provides for--

(i) the participation of relevant Federal agencies and State governments;

(ii) coordination, to the maximum extent practicable, with any marine spatial planning undertaken by States;

(iii) public input; and

(iv) the periodic revision of such plans as necessary to account for significant new information and ensure achievement of plan objectives;

(C) identification of required elements of such regional marine spatial plans, including rules that Federal agencies shall apply to applications for any authorizations required

under existing Federal law to construct or operate offshore renewable energy facilities within areas covered by such plans;

(D) an assessment of the adequacy of existing data, including baseline environmental data, to support such marine spatial planning and identification of gaps in such data

and the studies needed to fill such gaps;

(E) an assessment of the resources required to carry out such marine spatial planning;

(F) recommended mechanisms for the formal adoption and implementation of regional marine spatial plans for the development of offshore renewable energy facilities by

relevant Federal agencies;

(G) identification of any additional authority relevant Federal agencies would need to adopt and implement regional marine spatial plans for the development of offshore

renewable energy facilities; and

(H) such other recommendations as appropriate.

(3) REPORT- Not later than 6 months after the date of enactment of this section, the Federal Energy Regulatory Commission, the Secretary of the Interior, and the National

Oceanic and Atmospheric Administration shall jointly publish the findings and recommendations of the study conducted pursuant to this subsection and shall accept public comment

for at least 30 days after such publication. Following consideration of any public comments, and not later than 8 months after the date of enactment of this section, the Federal Energy

Regulatory Commission, the Secretary of the Interior, and the National Oceanic and Atmospheric Administration shall jointly submit to Congress and the Council on Environmental

Quality the findings and recommendations of the study conducted pursuant to this subsection.

(c) Assessment of Report-

(1) IN GENERAL- Not later than 4 months after the date of submission of the report required under subsection (b)(3), the Council on Environmental Quality shall assess the

recommendations of such report, issue a written determination as to whether the recommended approach to marine spatial planning should be implemented, and transmit such

written determination to the relevant Federal agencies and Congress.

(2) COORDINATION FOR RECOMMENDED APPROACH- If the Council on Environmental Quality determines that the recommended approach to marine spatial planning

should be implemented, the relevant Federal agencies shall implement such approach and complete the development of marine spatial plans pursuant to that approach no later

than 18 months after the written determination required by paragraph (1), and the Council on Environmental Quality shall coordinate such implementation. At the time of the written

determination required by paragraph (1), the Council on Environmental Quality shall notify Congress if the relevant Federal agencies lack authority to carry out any aspect of the

recommended approach.

(3) ALTERNATIVE APPROACH- If the Council on Environmental Quality determines that the recommended approach to marine spatial planning should not be implemented,

the Council on Environmental Quality shall formulate an alternative approach and submit such alternative approach to the relevant Federal agencies and Congress at the time of the

written determination required by paragraph (1).

(d) Relationship to Existing Law- Nothing in this section shall affect or be construed to affect any law, regulation, or memoranda of understanding governing the development of

offshore renewable energy facilities in effect prior to the implementation of the recommended or alternative approach pursuant to subsection (c).

(e) Authorization- There are authorized to be appropriated such sums as may be necessary to carry out this section.

SEC. 192. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT PROGRAM.

(a) In General- The Secretary of Energy is authorized to provide grants to organizations to conduct business competitions that provide incentives, training, and mentorship to

entrepreneurs and early stage start-up companies throughout the United States to meet high priority economic, environmental, and energy security goals in areas to include energy

efficiency, renewable energy, air quality, water quality and conservation, transportation, smart grid, green building, and waste management. Such competitions shall have the purpose

of accelerating the development and deployment of clean technology businesses and green jobs; stimulating green economic development; providing business training and

mentoring to early stage clean technology companies; and strengthening the competitiveness of United States clean technology industry in world trade markets. Priority shall be given

to business competitions that are private sector led, encourage regional and interregional cooperation, and can demonstrate market-driven practices and show the creation of

cost-effective green jobs through an annual publication of competition activities and directory of companies.

(b) Eligibility- An organization eligible for a grant under subsection (a) is--

(1) any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; and

(2) any sponsored entity of an organization described in paragraph (1) that is operated as a nonprofit entity.

(c) Priority- In making grants under this section, the Secretary shall give priority to those organizations that can demonstrate broad funding support from private and other

non-Federal funding sources to leverage Federal investment.

(d) Authorization of Appropriations- For the purpose of carrying out this section, there are authorized to be appropriated $20,000,000.

SEC. 193. NATIONAL BIOENERGY PARTNERSHIP.

(a) In General- The Secretary of Energy shall establish a National Bioenergy Partnership to provide coordination among programs of State governments, the Federal Government,

and the private sector that support the institutional and physical infrastructure necessary to promote the deployment of sustainable biomass fuels and bioenergy technologies for the

United States.

(b) Program- The National Bioenergy Partnership shall consist of five regions, to be administered by the CONEG Policy Research Center, the Council of Great Lakes Governors,

the Southern States Energy Board, the Western Governors Association, and the Pacific Regional Biomass Energy Partnership led by the Washington State University Energy

Program.

(c) Authorization of Appropriations- There are authorized to be appropriated for each of fiscal years 2010 through 2014 to carry out this section--

(1) $5,000,000, to be allocated among the 5 regions described in subsection (b) on the basis of the number of States in each region, for distribution among the member States

of that region based on procedures developed by the member States of the region; and

(2) $2,500,000, to be allocated equally among the 5 regions described in subsection (b) for region-wide activities, including technical assistance and regional studies and

coordination.

SEC. 194. OFFICE OF CONSUMER ADVOCACY.

(a) Office-

(1) ESTABLISHMENT- There is an Office of Consumer Advocacy established within the Commission to serve as an advocate for the public interest.

(2) DIRECTOR- The Office shall be headed by a Director to be appointed by the President, who is admitted to the Federal Bar, with experience in public utility proceedings, and

by and with the advice and consent of the Senate.

(3) DUTIES- The Office may--

(A) represent, and appeal on behalf of, energy customers on matters concerning rates or service of public utilities and natural gas companies under the jurisdiction of the

Commission--

(i) at hearings of the Commission;

(ii) in judicial proceedings in the courts of the United States; and

(iii) at hearings or proceedings of other Federal regulatory agencies and commissions;

(B) monitor and review energy customer complaints and grievances on matters concerning rates or service of public utilities and natural gas companies under the

jurisdiction of the Commission;

(C) investigate independently, or within the context of formal proceedings, the services provided by, the rates charged by, and the valuation of the properties of, public utilities

and natural gas companies under the jurisdiction of the Commission;

(D) develop means, such as public dissemination of information, consultative services, and technical assistance, to ensure, to the maximum extent practicable, that the

interests of energy consumers are adequately represented in the course of any hearing or proceeding described in subparagraph (A);

(E) collect data concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission; and

(F) prepare and issue reports and recommendations.

(4) COMPENSATION AND POWERS- The Director may--

(A) employ and fix the compensation of such staff personnel as is deemed necessary; and

(B) procure temporary and intermittent services as needed.

(5) ACCESS TO INFORMATION- Each department, agency, and instrumentality of the Federal Government is authorized and directed to furnish to the Director such reports and

other information as he deems necessary to carry out his functions under this section.

(b) Consumer Advocacy Advisory Committee-

(1) ESTABLISHMENT- The Director shall establish an advisory committee to be known as Consumer Advocacy Advisory Committee (in this section referred to as the `Advisory

Committee') to review rates, services, and disputes and to make recommendations to the Director.

(2) COMPOSITION- The Director shall appoint 5 members to the Advisory Committee including--

(A) 2 individuals representing State Utility Consumer Advocates; and

(B) 1 individual, from a nongovernmental organization, representing consumers.

(3) MEETINGS- The Advisory Committee shall meet at such frequency as may be required to carry out its duties.

(4) REPORTS- The Director shall provide for publication of recommendations of the Advisory Committee on the public website established for the Office.

(5) DURATION- Notwithstanding any other provision of law, the Advisory Committee shall continue in operation during the period in which the Office exists.

(6) APPLICATION OF FACA- Except as otherwise specifically provided, the Advisory Committee shall be subject to the Federal Advisory Committee Act.

(c) Definitions-

(1) COMMISSION- The term `Commission' means the Federal Energy Regulatory Commission.

(2) ENERGY CUSTOMER- The term `energy customer' means a residential customer or a small commercial customer that receives products or services from a public utility or

natural gas company under the jurisdiction of the Commission.

(3) NATURAL GAS COMPANY- The term `natural gas company' has the meaning given the term in section 2 of the Natural Gas Act (15 U.S.C. 717a), as modified by section

601(a) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).

(4) OFFICE- The term `Office' means the Office of Consumer Advocacy established by subsection (a)(1).

(5) PUBLIC UTILITY- The term `public utility' has the meaning given the term in section 201(e) of the Federal Power Act (16 U.S.C. 824(e)).

(6) SMALL COMMERCIAL CUSTOMER- The term `small commercial customer' means a commercial customer that has a peak demand of not more than 1,000 kilowatts per

hour.

(d) Authorization of Appropriations- There are authorized such sums as necessary to carry out this section.

(e) Savings Clause- Nothing in this section affects the rights or obligations of State Utility Consumer Advocates.

TITLE II--ENERGY EFFICIENCY

Subtitle A--Building Energy Efficiency Programs

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:

`SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

`(a) Energy Efficiency Targets-

`(1) IN GENERAL- Except as provided in paragraph (2) or (3), the national building code energy efficiency target for the national average percentage improvement of a building's

energy performance when built to a code meeting the target shall be--

`(A) effective on the date of enactment of the American Clean Energy and Security Act of 2009, 30 percent reduction in energy use relative to a comparable building

constructed in compliance with the baseline code;

`(B) effective January 1, 2014, for residential buildings, and January 1, 2015, for commercial buildings, 50 percent reduction in energy use relative to the baseline code; and

`(C) effective January 1, 2017, for residential buildings, and January 1, 2018, for commercial buildings, and every 3 years thereafter, respectively, through January 1, 2029,

and January 1, 2030, 5 percent additional reduction in energy use relative to the baseline code.

`(2) CONSENSUS-BASED CODES- If on any effective date specified in paragraph (1)(A), (B), or (C) a successor code to the baseline codes provides for greater reduction in

energy use than is required under paragraph (1), the overall percentage reduction in energy use provided by that successor code shall be the national building code energy efficiency

target.

`(3) TARGETS ESTABLISHED BY SECRETARY- The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings

achieving greater reductions in energy use than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such greater reductions in energy use can be achieved

with a code that is life cycle cost-justified and technically feasible. The Secretary may by rule establish a national building code energy efficiency target for residential or commercial

buildings achieving a reduction in energy use that is greater than zero but less than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such lesser target is

the maximum reduction in energy use that can be achieved through a code that is life cycle cost-justified and technically feasible.

`(4) ADDITIONAL REDUCTIONS IN ENERGY USE- Effective on January 1, 2033, and once every 3 years thereafter, the Secretary shall determine, after notice and opportunity for

comment, whether further energy efficiency building code improvements for residential or commercial buildings, respectively, are life cycle cost-justified and technically feasible, and

shall establish updated national building code energy efficiency targets that meet such criteria.

`(5) ZERO-NET-ENERGY BUILDINGS- In setting targets under this subsection, the Secretary shall consider ways to support the deployment of distributed renewable energy

technology, and shall seek to achieve the goal of zero-net-energy commercial buildings established in section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C.

17082).

`(6) BASELINE CODE- For purposes of this section, the term `baseline code' means--

`(A) for residential buildings, the 2006 International Energy Conservation Code (IECC) published by the International Code Council; and

`(B) for commercial buildings, the code published in ASHRAE Standard 90.1-2004.

`(7) CONSULTATION- In establishing the targets required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.

`(b) National Energy Efficiency Building Codes-

`(1) REQUIREMENT-

`(A) IN GENERAL- There shall be established national energy efficiency building codes under this subsection, for residential and commercial buildings, sufficient to meet

each of the national building code energy efficiency targets established under subsection (a), not later than the date that is one year after the deadline for establishment of each such

target.

`(B) EXISTING CODE- If the Secretary finds prior to the date one year after the deadline for establishing a target that one or more energy efficiency building codes published

by a recognized consensus-based code development organization meet or exceed the established target, the Secretary shall select the code that meets the target with the highest

efficiency in the most cost-effective manner, and such code shall be the national energy efficiency building code.

`(C) REQUIREMENT TO ESTABLISH CODE- If the Secretary does not make a finding under subparagraph (B), the national energy efficiency building code shall be

established by rule by the Secretary under paragraph (2).

`(2) ESTABLISHMENT BY SECRETARY-

`(A) PROCEDURE- In order to establish a national energy efficiency building code as required under paragraph (1)(C), the Secretary shall--

`(i) not later than six months prior to the effective date for each target, review existing and proposed codes published or under review by recognized consensus-based

code development organizations;

`(ii) determine the percentage of energy efficiency improvements that are or would be achieved in such published or proposed code versions relative to the target;

`(iii) propose improvements to such published or proposed code versions sufficient to meet or exceed the target; and

`(iv) unless a finding is made under paragraph (1)(B) with respect to a code published by a recognized consensus-based code development organization, adopt a code

that meets or exceeds the relevant national building code energy efficiency target by not later than one year after the effective date of such target.

`(B) CALCULATIONS- Each code established by the Secretary under this paragraph shall be set at the maximum level the Secretary determines is life cycle cost-justified

and technically feasible, in accordance with the following:

`(i) SAVINGS CALCULATIONS- Calculations of energy savings shall take into account the typical lifetimes of different products, measures, and system configurations.

`(ii) COST-EFFECTIVENESS CALCULATIONS- Calculations of life cycle cost-effectiveness shall be based on life cycle cost methods and procedures under section 544

of the National Energy Conservation Policy Act (42 U.S.C. 8254), but shall incorporate to the extent feasible externalities such as impacts on climate change and on peak energy

demand that are not already incorporated in assumed energy costs.

`(C) CONSIDERATIONS- In developing a national energy efficiency building code under this paragraph, the Secretary shall consider--

`(i) for residential codes--

`(I) residential building standards published or proposed by ASHRAE;

`(II) residential building codes published or proposed in the International Energy Conservation Code (IECC);

`(III) data from the Residential Energy Services Network (RESNET) on compliance measures utilized by consumers to qualify for the residential energy efficiency tax

credits established under the Energy Policy Act of 2005;

`(IV) data and information from the Department of Energy's Building America Program;

`(V) data and information from the Energy Star New Homes program;

`(VI) data and information from the New Building Institute and similar organizations; and

`(VII) standards for practices and materials to achieve cool roofs in residential buildings, taking into consideration reduced air conditioning energy use as a function

of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and

local voluntary programs; and

`(ii) for commercial codes--

`(I) commercial building standards proposed by ASHRAE;

`(II) commercial building codes proposed in the International Energy Conservation Code (IECC);

`(III) the Core Performance Criteria published by the New Buildings Institute;

`(IV) data and information developed by the Director of the Commercial High-Performance Green Building Office of the Department of Energy and any public-private

partnerships established under that Office;

`(V) data and information from the Energy Star for Buildings program;

`(VI) data and information from the New Building Institute, RESNET, and similar organizations; and

`(VII) standards for practices and materials to achieve cool roofs in commercial buildings, taking into consideration reduced air conditioning energy use as a function

of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and

local voluntary programs.

`(D) CONSULTATION- In establishing any national energy efficiency building code required by this section, the Secretary shall consult with the Director of the National

Institute of Standards and Technology.

`(3) CONSENSUS STANDARD ASSISTANCE- (A) To support the development of consensus standards that may provide the basis for national energy efficiency building codes,

minimize duplication of effort, encourage progress through consensus, and facilitate the development of greater building efficiency, the Secretary shall provide assistance to

recognized consensus-based code development organizations to develop, and where the relevant code has been adopted as the national code, disseminate consensus based

energy efficiency building codes as provided in this paragraph.

`(B) Upon a finding by the Secretary that a code developed by such an organization meets a target established under subsection (a), the Secretary shall--

`(i) send notice of the Secretary's finding to all duly authorized or appointed State and local code agencies; and

`(ii) provide sufficient support to such an organization to make the code available on the Internet, or to accomplish distribution of such code to all such State and local code

agencies at no cost to the State and local code agencies.

`(C) The Secretary may contract with such an organization and with other organizations with expertise on codes to provide training for State and local code officials and building

inspectors in the implementation and enforcement of such code.

`(D) The Secretary may provide grants and other support to such an organization to--

`(i) develop appropriate refinements to such code; and

`(ii) support analysis of options for improvements in the code to meet the next scheduled target.

`(4) CODE DEVELOPED BY SECRETARY- If the Secretary establishes a national energy efficiency building code under paragraph (2), the Secretary shall--

`(A) to the extent that such code is based on a prior code developed by a recognized consensus-based code development organization, negotiate and provide appropriate

compensation to such organization for the use of the code materials that remain in the code established by the Secretary; and

`(B) disseminate the national energy efficiency building codes to State and local code officials, and support training and provide guidance and technical assistance to such

officials as appropriate.

`(c) State Adoption of Energy Efficiency Building Codes-

`(1) REQUIREMENT- Not later than 1 year after a national energy efficiency building code for residential or commercial buildings is established or revised under subsection (b),

each State--

`(A) shall--

`(i) review and update the provisions of its building code regarding energy efficiency to meet or exceed the target met in the new national code, to achieve equivalent or

greater energy savings;

`(ii) document, where local governments establish building codes, that local governments representing not less than 80 percent of the State's urban population have

adopted the new national code, or have adopted local codes that meet or exceed the target met in the new national code to achieve equivalent or greater energy savings; or

`(iii) adopt the new national code; and

`(B) shall provide a certification to the Secretary demonstrating that energy efficiency building code provisions that apply throughout the State meet or exceed the target met

by the new national code, to achieve equivalent or greater energy savings.

`(2) CONFIRMATION-

`(A) REQUIREMENT- Not later than 90 days after a State certification is provided under paragraph (1)(B), the Secretary shall determine whether the State's energy efficiency

building code provisions meet the requirements of this subsection.

`(B) ACCEPTANCE BY SECRETARY- If the Secretary determines under subparagraph (A) that the State's energy efficiency building code or codes meet the requirements of

this subsection, the Secretary shall accept the certification.

`(C) DEFICIENCY NOTICE- If the Secretary determines under subparagraph (A) that the State's building code or codes do not meet the requirements of this subsection, the

Secretary shall identify the deficiency in meeting the national building code energy efficiency target, and, to the extent possible, indicate areas where further improvement in the State's

code provisions would allow the deficiency to be eliminated.

`(D) REVISION OF CODE AND RECERTIFICATION- A State may revise its code or codes and submit a recertification under paragraph (1)(B) to the Secretary at any time.

`(3) COMPLIANT CODE- For the purposes of meeting the target described in subsection (a)(1)(A) for residential buildings, a State that adopts the code represented in

California's Title 24-2009 by the date two years after the date of enactment of the American Clean Energy and Security Act of 2009 shall be considered to have met the requirements of

this subsection for the applicable period.

`(d) Application of National Code to State and Local Jurisdictions-

`(1) IN GENERAL- Upon the expiration of 1 year after a national energy efficiency building code is established under subsection (b), in any jurisdiction where the State has not

had a certification relating to that code accepted by the Secretary under subsection (c)(2)(B), and the local government has not had a certification relating to that code accepted by the

Secretary under subsection (e)(6)(B), the national code shall become the applicable energy efficiency building code for such jurisdiction.

`(2) STATE LEGISLATIVE ADOPTION- In a State in which the relevant building energy code is adopted legislatively, the deadline in paragraph (1) shall not be earlier than 1 year

after the first day that the legislature meets following establishment of a national energy efficiency building code.

`(3) VIOLATIONS- Violations of this section shall be defined as follows:

`(A) If the building is subject to the requirements of a State energy efficiency building code with respect to which a certification has been accepted by the Secretary under

subsection (c)(2)(B) or a local energy efficiency building code with respect to which a certification has been accepted by the Secretary pursuant to subsection (e)(6)(B), a violation

shall be determined pursuant to the relevant provisions of the State or local code.

`(B) If the building is subject to the requirements of a national energy efficiency building code adopted under subsection (c)(1)(A)(i) or made applicable under paragraph (1)

of this subsection, a violation shall be defined by the Secretary pursuant to subsection (g).

`(e) State Enforcement of Energy Efficiency Building Codes-

`(1) IN GENERAL- Each State, or where applicable under State law each local government, shall implement and enforce applicable State or local codes with respect to which a

certification was accepted by the Secretary under subsection (c)(2)(B) or paragraph (6)(B) of this subsection, or the national energy efficiency building codes, as provided in this

subsection.

`(2) STATE CERTIFICATION- Not later than 2 years after the date of a certification under subsection (c)(1) or the establishment of a national energy efficiency building code

under subsection (b), each State shall certify that it has--

`(A) achieved compliance with--

`(i) State codes, or, as provided under State law, local codes, with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B); or

`(ii) the national energy efficiency building code, as applicable; or

`(B) for any certification submitted within 7 years after the date of enactment of the American Clean Energy and Security Act of 2009, made significant progress toward

achieving such compliance.

`(3) ACHIEVING COMPLIANCE- A State shall be considered to achieve compliance with a code described in paragraph (2)(A) if at least 90 percent of new and substantially

renovated building space in that State in the preceding year upon inspection meets the requirements of the code. A certification under paragraph (2) shall include documentation of

the rate of compliance based on--

`(A) independent inspections of a random sample of the new and substantially renovated buildings covered by the code in the preceding year; or

`(B) an alternative method that yields an accurate measure of compliance as determined by the Secretary.

`(4) SIGNIFICANT PROGRESS- A State shall be considered to have made significant progress toward achieving compliance with a code described in paragraph (2)(A) if--

`(A) the State has developed a plan, including for hiring enforcement staff, providing training, providing manuals and checklists, and instituting enforcement programs,

designed to achieve full compliance within 5 years after the date of the adoption of the code;

`(B) the State is taking significant, timely, and measurable action to implement that plan;

`(C) the State has not reduced its expenditures for code enforcement; and

`(D) at least 50 percent of new and substantially renovated building space in the State in the preceding year upon inspection meets the requirements of the code.

`(5) Secretary'S DETERMINATION- Not later than 90 days after a State certification under paragraph (2), the Secretary shall determine whether the State has demonstrated that

it has complied with the requirements of this subsection, including accurate measurement of compliance, or that it has made significant progress toward compliance. If such

determination is positive, the Secretary shall accept the certification. If the determination is negative, the Secretary shall identify the areas of deficiency.

`(6) OUT OF COMPLIANCE-

`(A) IN GENERAL- Any State for which the Secretary has not accepted a certification under paragraph (5) by a deadline established under this subsection is out of

compliance with this section.

`(B) LOCAL COMPLIANCE- In any State that is out of compliance with this section as provided in subparagraph (A), a local government may be in compliance with this

section by meeting all certification requirements applicable to the State.

`(C) NONCOMPLIANCE- Any State that is not in compliance with this section, as provided in subparagraph (A), shall, until the State regains such compliance, be ineligible

to receive--

`(i) emission allowances pursuant to subsection (h)(1);

`(ii) Federal funding in excess of that State's share (calculated according to the allocation formula in section 363 of the Energy Policy and Conservation Act (42 U.S.C.

6323)) of $125,000,000 each year; and

`(iii) for--

`(I) the first year for which the State is out of compliance, 25 percent of any additional funding or other items of monetary value otherwise provided under the American

Clean Energy and Security Act of 2009;

`(II) the second year for which the State is out of compliance, 50 percent of any additional funding or other items of monetary value otherwise provided under the

American Clean Energy and Security Act of 2009;

`(III) the third year for which the State is out of compliance, 75 percent of any additional funding or other items of monetary value otherwise provided under the

American Clean Energy and Security Act of 2009; and

`(IV) the fourth and subsequent years for which the State is out of compliance, 100 percent of any additional funding or other items of monetary value otherwise

provided under the American Clean Energy and Security Act of 2009.

`(f) Federal Enforcement- Where a State fails and local governments in that State also fail to enforce the applicable State or national energy efficiency building codes, the Secretary

shall enforce such codes, as follows:

`(1) The Secretary shall establish, by rule, within 2 years after the date of enactment of the American Clean Energy and Security Act of 2009, an energy efficiency building code

enforcement capability.

`(2) Such enforcement capability shall be designed to achieve 90 percent compliance with such code in any State within 1 year after the date of the Secretary's determination

that such State is out of compliance with this section.

`(3) The Secretary may set and collect reasonable inspection fees to cover the costs of inspections required for such enforcement. Revenue from fees collected shall be

available to the Secretary to carry out the requirements of this section upon appropriation.

`(g) Enforcement Procedures- The Secretary shall propose and, not later than three years after the date of enactment of the American Clean Energy and Security Act of 2009, shall

determine and adopt by rule what shall constitute violations of the energy efficiency building codes to be enforced pursuant to this section, and the penalties that shall apply to

violators. To the extent that the Secretary determines that the authority to adopt and impose such violations and penalties by rule requires further statutory authority, the Secretary shall

report such determination to Congress as soon as such determination is made, but not later than one year after the enactment of the American Clean Energy and Security Act of

2009.

`(h) Federal Support-

`(1) ALLOWANCE ALLOCATION FOR STATE COMPLIANCE- For each vintage year from 2012 through 2050, the Administrator shall distribute allowances allocated pursuant to

section 782(g)(2) of the Clean Air Act to the SEED Account for each State that the Secretary identifies as a State from which he has accepted the State's certification under subsection

(e)(5) for compliance with the then current national energy efficiency building codes. Such allowances shall be distributed according to a formula established by the Secretary as

follows:

`(A) One-fifth in an equal amount to each of the 50 States and United States territories.

`(B) Two-fifths as a function of the relative energy use in all buildings in each State in the most recent year for which data is available.

`(C) Two-fifths based on the number of building construction starts recorded in each State, the number of new building permits applied for in each State, or other relevant

available data indicating building activity in each State, in the judgment of the Secretary, for the year prior to the year of the distribution.

`(2) ALLOWANCE ALLOCATION TO LOCAL GOVERNMENTS- In the instance that the Secretary certifies that one or more local governments are in compliance with this section

pursuant to subsection (e)(6)(B), the Administrator shall provide to each such local government the portion of the emission allowances that would have been provided to that State as

a function of the population of that locality as a proportion of the population of that State as a whole.

`(3) UNALLOCATED ALLOWANCES- To the extent that allowances are not provided to State or local governments for lack of certification in any year, those allowances shall be

added to the amount provided to those States and local governments that are certified as eligible in that year.

`(4) USE OF ALLOWANCES- Each State or each local government shall use such emission allowances as it receives pursuant to this section exclusively for the purposes of

this section, including covering a reasonable portion of the costs of the development, adoption, implementation, and enforcement of a State or local energy efficiency building code

with respect to which a certification is accepted by the Secretary under subsection (c)(2)(B) or subsection (e)(6)(B), or the national energy efficiency building code. In a State where

local governments provide building code enforcement, a minimum of 50 percent of the allowance value received pursuant to this section shall be distributed to local governments as

a function of the relative populations of such localities.

`(i) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Energy $100,000,000 for each of fiscal years 2010 through 2020 and such sums

thereafter as may be necessary to support the purposes of this section.

`(j) Annual Reports by Secretary- The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on--

`(1) the status of national building energy efficiency codes;

`(2) the status of energy efficiency building code adoption and compliance in the States;

`(3) the implementation of this section; and

`(4) impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings, including resulting energy and cost savings.'.

SEC. 202. BUILDING RETROFIT PROGRAM.

(a) Definitions- For purposes of this section:

(1) NONRESIDENTIAL BUILDING- The term `nonresidential building' means a building with a primary use or purpose other than residential housing, including commercial

offices, schools, academic and other public and private institutions, nonprofit organizations, hospitals, hotels, and houses of worship. Such buildings shall include mixed-use

properties used for both residential and nonresidential purposes in which more than half of building floor space is nonresidential.

(2) PERFORMANCE-BASED BUILDING RETROFIT PROGRAM- The term `performance-based building retrofit program' means a program that determines building energy

efficiency success based on actual measured savings after a retrofit is complete, as evidenced by energy invoices or evaluation protocols.

(3) PRESCRIPTIVE BUILDING RETROFIT PROGRAM- The term `prescriptive building retrofit program' means a program that projects building retrofit energy efficiency success

based on the known effectiveness of measures prescribed to be included in a retrofit.

(4) RECOMMISSIONING; RETROCOMMISSIONING- The terms `recommissioning' and `retrocommissioning' have the meaning given those terms in section 543(f)(1) of the

National Energy Conservation Policy Act (42 U.S.C. 8253(f)(1)).

(5) RESIDENTIAL BUILDING- The term `residential building' means a building whose primary use is residential. Such buildings shall include single-family homes (both

attached and detached), owner-occupied units in larger buildings with their own dedicated space-conditioning systems, and buildings used for both residential and nonresidential

purposes in which more than half of building floor space is residential.

(6) STATE ENERGY PROGRAM- The term `State Energy Program' means the program under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).

(b) Establishment- The Administrator shall develop and implement, in consultation with the Secretary of Energy, standards for a national energy and environmental building retrofit

policy for single-family and multifamily residences. The Administrator shall develop and implement, in consultation with the Secretary of Energy and the Director of Commercial

High-Performance Green Buildings, standards for a national energy and environmental building retrofit policy for nonresidential buildings. The programs to implement the residential

and nonresidential policies based on the standards developed under this section shall together be known as the Retrofit for Energy and Environmental Performance (REEP)

program.

(c) Purpose- The purpose of the REEP program is to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency

improvements and significant improvements in water use and other environmental attributes.

(d) Federal Administration-

(1) EXISTING PROGRAMS- In creating and operating the REEP program--

(A) the Administrator shall make appropriate use of existing programs, including the Energy Star program and in particular the Environmental Protection Agency Energy Star

for Buildings program; and

(B) the Secretary of Energy shall make appropriate use of existing programs, including delegating authority to the Director of Commercial High-Performance Green

Buildings appointed under section 421 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17081), who shall designate and provide funding to support a

high-performance green building partnership consortium pursuant to subsection (f) of such section to support efforts under this section.

(2) CONSULTATION AND COORDINATION- The Administrator and the Secretary of Energy shall consult with and coordinate with the Secretary of Housing and Urban

Development in carrying out the REEP program.

(3) ASSISTANCE- The Administrator and the Secretary of Energy shall provide consultation and assistance to State and local agencies for the establishment of revolving loan

funds, loan guarantees, or other forms of financial assistance under this section.

(e) State and Local Administration-

(1) DESIGNATION AND DELEGATION- A State may designate one or more agencies or entities, including those regulated by the State, to carry out the purposes of this section,

but shall designate one entity or individual as the principal point of contact for the Administrator regarding the REEP Program. The designated State agency, agencies, or entities may

delegate performance of appropriate elements of the REEP program, upon their request and subject to State law, to counties, municipalities, appropriate public agencies, and other

divisions of local government, as well as to entities regulated by the State. In making any such designation or delegation, a State shall give priority to entities that administer existing

comprehensive retrofit programs, including those under the supervision of State utility regulators. States shall maintain responsibility for meeting the standards and requirements of

the REEP program. In any State that elects not to administer the REEP program, a unit of local government may propose to do so within its jurisdiction, and if the Administrator finds

that such local government is capable of administering the program, the Administrator may provide allowances to that local government, prorated according to the population of the

local jurisdiction relative to the population of the State, for purposes of the REEP program.

(2) EMPLOYMENT- States and local government entities may administer a REEP program in a manner that authorizes public or regulated investor-owned utilities, building

auditors and inspectors, contractors, nonprofit organizations, for-profit companies, and other entities to perform audits and retrofit services under this section. A State may provide

incentives for retrofits without direct participation by the State or its agents, so long as the resulting savings are measured and verified. A State or local administrator of a REEP

program shall seek to ensure that sufficient qualified entities are available to support retrofit activities so that building owners have a competitive choice among qualified auditors,

raters, contractors, and providers of services related to retrofits. Nothing in this section is intended to preclude or preempt the right of a building owner to choose the specific providers

of retrofit services to engage for a retrofit project in that owner's building.

(3) EQUAL INCENTIVES FOR EQUAL IMPROVEMENT- In general, the States should strive to offer the same levels of incentives for retrofits that meet the same efficiency

improvement goals, regardless of whether the State, its agency or entity, or the building owner has conducted the retrofit achieving the improvement, provided the improvement is

measured and verified.

(f) Elements of REEP Program- The Administrator, in consultation with the Secretary of Energy, shall establish goals, guidelines, practices, and standards for accomplishing the

purpose stated in subsection (c), and shall annually review and, as appropriate, revise such goals, guidelines, practices, and standards. The program under this section shall

include the following:

(1) Residential Energy Services Network (RESNET) or Building Performance Institute (BPI) analyst certification of residential building energy and environment auditors,

inspectors, and raters, or an equivalent certification system as determined by the Administrator.

(2) BPI certification or licensing by States of residential building energy and environmental retrofit contractors, or an equivalent certification or licensing system as determined

by the Administrator.

(3) Provision of BPI, RESNET, or other appropriate information on equipment and procedures, as determined by the Administrator, that contractors can use to test the energy

and environmental efficiency of buildings effectively (such as infrared photography and pressurized testing, and tests for water use and indoor air quality).

(4) Provision of clear and effective materials to describe the testing and retrofit processes for typical buildings.

(5) Guidelines for offering and managing prescriptive building retrofit programs and performance-based building retrofit programs for residential and nonresidential buildings.

(6) Guidelines for applying recommissioning and retrocommissioning principles to improve a building's operations and maintenance procedures.

(7) A requirement that building retrofits conducted pursuant to a REEP program utilize, especially in all air-conditioned buildings, roofing materials with high solar energy

reflectance, unless inappropriate due to green roof management, solar energy production, or for other reasons identified by the Administrator, in order to reduce energy consumption

within the building, increase the albedo of the building's roof, and decrease the heat island effect in the area of the building.

(8) Determination of energy savings in a performance-based building retrofit program through--

(A) for residential buildings, comparison of before and after retrofit scores on the Home Energy Rating System (HERS) Index, where the final score is produced by an

objective third party;

(B) for nonresidential buildings, Environmental Protection Agency Portfolio Manager benchmarks; or

(C) for either residential or nonresidential buildings, use of an Administrator-approved simulation program by a contractor with the appropriate certification, subject to

appropriate software standards and verification of at least 15 percent of all work done, or such other percentage as the Administrator may determine.

(9) Guidelines for utilizing the Energy Star Portfolio Manager, the Home Energy Rating System (HERS) rating system, Home Performance with Energy Star program approvals,

and any other tools associated with the retrofit program.

(10) Requirements and guidelines for post-retrofit inspection and confirmation of work and energy savings.

(11) Detailed descriptions of funding options for the benefit of State and local governments, along with model forms, accounting aids, agreements, and guides to best

practices.

(12) Guidance on opportunities for--

(A) rating or certifying retrofitted buildings as Energy Star buildings, or as green buildings under a recognized green building rating system;

(B) assigning Home Energy Rating System (HERS) or similar ratings; and

(C) completing any applicable building performance labels.

(13) Sample materials for publicizing the program to building owners, including public service announcements and advertisements.

(14) Processes for tracking the numbers and locations of buildings retrofitted under the REEP program, with information on projected and actual savings of energy and its

value over time.

(g) Requirements- As a condition of receiving allowances for the REEP program pursuant to this Act, a State or qualifying local government shall--

(1) adopt the standards for training, certification of contractors, certification of buildings, and post-retrofit inspection as developed by the Administrator for residential and

nonresidential buildings, respectively, except as necessary to match local conditions, needs, efficiency opportunities, or other local factors, or to accord with State laws or regulations,

and then only after the Administrator approves such a variance; and

(2) establish fiscal controls and accounting procedures (which conform to generally accepted government accounting principles) sufficient to ensure proper accounting during

appropriate accounting periods for payments received and disbursements, and for fund balances.

The Administrator shall conduct or require each State to have such independent financial audits of REEP-related funding as the Administrator considers necessary or appropriate

to carry out the purposes of this section.

(h) Options to Support REEP Program- The emission allowances provided pursuant to this Act to the States' SEED Accounts shall support the implementation through State REEP

programs of alternate means of creating incentives for, or reducing financial barriers to, improved energy and environmental performance in buildings, consistent with this section,

including--

(1) implementing prescriptive building retrofit programs and performance-based building retrofit programs;

(2) providing credit enhancement, interest rate subsidies, loan guarantees, or other credit support;

(3) providing initial capital for public revolving fund financing of retrofits, with repayments by beneficiary building owners over time through their tax payments, calibrated to

create net positive cash flow to the building owner;

(4) providing funds to support utility-operated retrofit programs with repayments over time through utility rates, calibrated to create net positive cash flow to the building owner,

and transferable from one building owner to the next with the building's utility services;

(5) providing funds to local government programs to provide REEP services and financial assistance; and

(6) other means proposed by State and local agencies, subject to the approval of the Administrator.

(i) Support for Program-

(1) USE OF ALLOWANCES- Direct Federal support for the REEP program is provided through the emission allowances allocated to the States' SEED Accounts pursuant to

section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement elements of the REEP Program, that shall be deemed a

distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(2) INITIAL AWARD LIMITS- Except as provided in paragraph (3), State and local REEP programs may make per-building direct expenditures for retrofit improvements, or their

equivalent in indirect or other forms of financial support, from funds derived from the sale of allowances received directly from the Administrator in amounts not to exceed the

following:

(A) RESIDENTIAL BUILDING PROGRAM-

(i) AWARDS- For residential buildings--

(I) support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent

reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $200, in addition to any earned by achieving a 20 percent or greater

efficiency improvement;

(II) a total of $1,000 for a combination of measures, prescribed in an audit conducted under subclause (I), designed to reduce energy consumption by more than 10

percent, and $2,000 for a combination of measures prescribed in such an audit, designed to reduce energy consumption by more than 20 percent;

(III) $3,000 for demonstrated savings of 20 percent, pursuant to a performance-based building retrofit program; and

(IV) $1,000 for each additional 5 percentage points of energy savings achieved beyond savings for which funding is provided under subclause (II) or (III).

Funding shall not be provided under clauses (II) and (III) for the same energy savings.

(ii) MAXIMUM PERCENTAGE- Awards under clause (i) shall not exceed 50 percent of retrofit costs for each building. For buildings with multiple residential units, awards

under clause (i) shall not be greater than 50 percent of the total cost of retrofitting the building, prorated among individual residential units on the basis of relative costs of the retrofit.

(iii) ADDITIONAL AWARDS- Additional awards may be provided for purposes of increasing energy efficiency, for buildings achieving at least 20 percent energy savings

using funding provided under clause (i), in the form of grants of not more than $600 for measures projected or measured (using an appropriate method approved by the

Administrator) to achieve at least 35 percent potable water savings through equipment or systems with an estimated service life of not less than seven years, and not more than an

additional $20 may be provided for each additional one percent of such savings, up to a maximum total grant of $1,200.

(B) NONRESIDENTIAL BUILDING PROGRAM-

(i) AWARDS- For nonresidential buildings--

(I) support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent

reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $500, in addition to any award earned by achieving a 20 percent or

greater efficiency improvement;

(II) $0.15 per square foot of retrofit area for demonstrated energy use reductions from 20 percent to 30 percent;

(III) $0.75 per square foot for demonstrated energy use reductions from 30 percent to 40 percent;

(IV) $1.60 per square foot for demonstrated energy use reductions from 40 percent to 50 percent; and

(V) $2.50 per square foot for demonstrated energy use reductions exceeding 50 percent.

(ii) MAXIMUM PERCENTAGE- Amounts provided under subclauses (II) through (V) of clause (i) combined shall not exceed 50 percent of the total retrofit cost of a building.

In nonresidential buildings with multiple units, such awards shall be prorated among individual units on the basis of relative costs of the retrofit.

(iii) ADDITIONAL AWARDS- Additional awards may be provided, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), as

follows:

(I) WATER- For purposes of increasing energy efficiency, grants may be made for whole building potable water use reduction (using an appropriate method approved

by the Secretary of Energy) for up to 50 percent of the total retrofit cost, including amounts up to--

(aa) $24.00 per thousand gallons per year of potable water savings of 40 percent or more;

(bb) $27.00 per thousand gallons per year of potable water savings of 50 percent or more; and

(cc) $30.00 per thousand gallons per year of potable water savings of 60 percent or more.

(II) ENVIRONMENTAL IMPROVEMENTS- Additional awards of up to $1,000 may be granted for the inclusion of other environmental attributes that the Secretary, in

consultation with the Administrator, identifies as contributing to energy efficiency. Such attributes may include, but are not limited to waste diversion and the use of environmentally

preferable materials (including salvaged, renewable, or recycled materials, and materials with no or low-VOC content). The Administrator may recommend that States develop such

standards as are necessary to account for local or regional conditions that may affect the feasibility or availability of identified resources and attributes.

(iv) INDOOR AIR QUALITY MINIMUM- Nonresidential buildings receiving incentives under this section must satisfy at a minimum the most recent version of ASHRAE

Standard 62.1 for ventilation, or the equivalent as determined by the Administrator. A State may issue a waiver from this requirement to a building project on a showing that such

compliance is infeasible due to the physical constraints of the building's existing ventilation system, or such other limitations as may be specified by the Administrator.

(C) HISTORIC BUILDINGS- Notwithstanding subparagraphs (A) and (B), a building in or eligible for the National Register of Historic Places shall be eligible for awards

under this paragraph in amounts up to 120 percent of the amounts set forth in subparagraphs (A) and (B).

(D) SUPPLEMENTAL SUPPORT- State and local governments may supplement the per-building expenditures under this paragraph with funding from other sources.

(3) ADJUSTMENT- The Administrator may adjust the specific dollar limits funded by the sale of allowances pursuant to paragraph (2) in years subsequent to the second year

after the date of enactment of this Act, and every 2 years thereafter, as the Administrator determines necessary to achieve optimum cost-effectiveness and to maximize incentives to

achieve energy efficiency within the total building award amounts provided in that paragraph, and shall publish and hold constant such revised limits for at least 2 years.

(j) Report to Congress- The Administrator shall conduct an annual assessment of the achievements of the REEP program in each State, shall prepare an annual report of such

achievements and any recommendations for program modifications, and shall provide such report to Congress at the end of each fiscal year during which funding or other resources

were made available to the States for the REEP Program.

(k) Other Sources of Federal Support-

(1) ADDITIONAL STATE ENERGY PROGRAM FUNDS- Any Federal funding provided to a State Energy Program that is not required to be expended for a different federally

designated purpose may be used to support a REEP program.

(2) PROGRAM ADMINISTRATION- State Energy Offices or designated State agencies may expend up to 10 percent of available allowance value provided under this section for

program administration.

(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for the purposes of this section, for each of fiscal years 2010, 2011, 2012, and 2013--

(A) $50,000,000 to the Administrator for program administration costs; and

(B) $20,000,000 to the Secretary of Energy for program administration costs.

SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.

(a) Definitions- In this section:

(1) MANUFACTURED HOME- The term `manufactured home' has the meaning given such term in section 603 of the National Manufactured Housing Construction and Safety

Standards Act of 1974 (42 U.S.C. 5402).

(2) ENERGY STAR QUALIFIED MANUFACTURED HOME- The term `Energy Star qualified manufactured home' means a manufactured home that has been designed,

produced, and installed in accordance with Energy Star's guidelines by an Energy Star certified plant.

(b) Purpose- The purpose of this section is to assist low-income households residing in manufactured homes constructed prior to 1976 to save energy and energy expenditures

by providing support toward the purchase of new Energy Star qualified manufactured homes.

(c) State Implementation of Program-

(1) MANUFACTURED HOME REPLACEMENT PROGRAM- Any State may provide to the owner of a manufactured home constructed prior to 1976 a rebate to use toward the

purchase of a new Energy Star qualified manufactured home pursuant to this section.

(2) USE OF ALLOWANCES- Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States' SEED

Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a

distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(3) REBATES-

(A) PRIMARY RESIDENCE REQUIREMENT- A rebate described under paragraph (1) may only be made to an owner of a manufactured home constructed prior to 1976 that

is used on a year-round basis as a primary residence.

(B) DISMANTLING AND REPLACEMENT- A rebate described under paragraph (1) may be made only if the manufactured home constructed prior to 1976 will be--

(i) rendered unusable for human habitation (including appropriate recycling); and

(ii) replaced, in the same general location, as determined by the applicable State agency, with an Energy Star qualified manufactured home.

(C) SINGLE REBATE- A rebate described under paragraph (1) may not be provided to any owner of a manufactured home constructed prior to 1976 that was or is a member

of a household for which any other member of the household was provided a rebate pursuant to this section.

(D) ELIGIBLE HOUSEHOLDS- To be eligible to receive a rebate described under paragraph (1), an owner of a manufactured home constructed prior to 1976 shall

demonstrate to the applicable State agency that the total income of all members the owner's household does not exceed 200 percent of the Federal poverty level for income in the

applicable area.

(E) ADVANCE AVAILABILITY- A rebate may be provided under this section in a manner to facilitate the purchase of a new Energy Star qualified manufactured home.

(4) REBATE LIMITATION- Rebates provided by States under this section shall not exceed $7,500 per manufactured home from any value derived from the use of emission

allowances provided to the State pursuant to section 132.

(5) USE OF STATE FUNDS- A State providing rebates under this section may supplement the amount of such rebates under paragraph (4) by any additional amount is from

State funds and other sources, including private donations or grants from charitable organizations.

(6) COORDINATION WITH SIMILAR PROGRAMS-

(A) STATE PROGRAMS- A State conducting an existing program that has the purpose of replacing manufactured homes constructed prior to 1976 with Energy Star qualified

manufactured homes, may use allowance value provided under section 782 of the Clean Air Act to support such a program, provided such funding does not exceed the rebate

limitation amount under paragraph (4).

(B) FEDERAL PROGRAMS- The Secretary of Energy shall coordinate with and seek to achieve the purpose of this section through similar Federal programs including--

(i) the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); and

(ii) the program under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).

(C) COORDINATION WITH OTHER STATE AGENCIES- A State agency using allowance value to administer the program under this section may coordinate its efforts, and

share funds for administration, with other State agencies involved in low-income housing programs.

(7) ADMINISTRATIVE EXPENSES- A State using allowance value under this section may expend not more than 10 percent of such value for administrative expenses related to

this program.

SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.

(a) Establishment-

(1) PURPOSE- The Administrator shall establish a building energy performance labeling program with broad applicability to the residential and commercial markets to enable

and encourage knowledge about building energy performance by owners and occupants and to inform efforts to reduce energy consumption nationwide.

(2) COMPONENTS- In developing such program, the Administrator shall--

(A) consider existing programs, such as Environmental Protection Agency's Energy Star program, the Home Energy Rating System (HERS) Index, and programs at the

Department of Energy;

(B) support the development of model performance labels for residential and commercial buildings; and

(C) utilize incentives and other means to spur use of energy performance labeling of public and private sector buildings nationwide.

(b) Data Assessment for Building Energy Performance-

(1) INITIAL REPORT- Not later than 90 days after the date of enactment of this Act, the Administrator shall provide to Congress, as well as to the Secretary of Energy and the

Office of Management and Budget, a report identifying--

(A) all principal building types for which statistically significant energy performance data exists to serve as the basis of measurement protocols and labeling requirements

for achieved building energy performance; and

(B) those building types for which additional data are required to enable the development of such protocols and requirements.

(2) ADDITIONAL REPORTS- Additional updated reports shall be provided under this subsection as often as The Administrator considers practicable, but not less than every 2

years.

(c) Building Data Acquisition-

(1) RESOURCE REQUIREMENTS- For all principal building types identified under subsection (b), the Secretary of Energy, not later than 90 days after a report by the

Administrator under subsection (b), shall provide to Congress, the Administrator, and the Office of Management and Budget a statement of additional resources needed, if any, to fully

develop the relevant data, as well as the anticipated timeline for data development.

(2) CONSULTATION- The Secretary of Energy shall consult with the Administrator concerning the Administrator's ability to use data series for these additional building types to

support the achieved performance component in the labeling program.

(3) IMPROVEMENTS TO BUILDING ENERGY CONSUMPTION DATABASES-

(A) COMMERCIAL DATABASE- The Secretary of Energy shall support improvements to the Commercial Buildings Energy Consumption Survey (CBECS) as authorized by

section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k))--

(i) to enable complete and robust data for the actual energy performance of principal building types currently covered by survey;

(ii) to cover additional building types as identified by the Administrator under subsection (b)(1)(B), to enable the development of achieved performance measurement

protocols are developed for at least 90 percent of all major commercial building types within 5 years after the date of enactment of this Act; and

(iii) to include third-party audits of random data samplings to ensure the quality and accuracy of survey information.

(B) RESIDENTIAL DATABASES- The Administrator, in consultation with the Energy Information Administration and the Secretary of Energy, shall support improvements to

the Residential Energy Consumption Survey (RECS) as authorized by section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k)), or such other residential

energy performance databases as the Administrator considers appropriate, to aid the development of achieved performance measurement protocols for residential building energy

use for at least 90 percent of the residential market within 5 years after the date of enactment of this Act.

(C) CONSULTATION- The Secretary of Energy and the Administrator shall consult with public, private, and nonprofit sector representatives from the building industry and

real estate industry to assist in the evaluation and improvement of building energy performance databases and labeling programs.

(d) Identification of Measurement Protocols for Achieved Performance-

(1) PROPOSED PROTOCOLS AND REQUIREMENTS- At the earliest practicable date, but not later than 1 year after identifying a building type under subsection (b)(1)(A), the

Administrator shall propose a measurement protocol for that building type and a requirement detailing how to use that protocol in completing applicable commercial or residential

performance labels created pursuant to this section.

(2) FINAL RULE- After providing for notice and comment, the Administrator shall publish a final rule containing a measurement protocol and the corresponding requirements

for applying that protocol. Such a rule--

(A) shall define the minimum period for measurement of energy use by buildings of that type and other details for determining achieved performance, to include leased

buildings or parts thereof;

(B) shall identify necessary data collection and record retention requirements; and

(C) may specify transition rules and exemptions for classes of buildings within the building type.

(e) Procedures for Evaluating Designed Performance- The Administrator shall develop protocols for evaluating the designed performance of individual building types. The

Administrator may conduct such feasibility studies and demonstration projects as are necessary to evaluate the sufficiency of proposed protocols for designed performance.

(f) Creation of Building Energy Performance Labeling Program-

(1) MODEL LABEL- Not later than 1 year after the date of enactment of this Act, the Administrator shall propose a model building energy label that provides a format--

(A) to display achieved performance and designed performance data;

(B) that may be tailored for residential and commercial buildings, and for single-occupancy and multitenanted buildings; and

(C) to display other appropriate elements identified during the development of measurement protocols under subsections (d) and (e).

(2) INCLUSIONS- Nothing in this section shall require the inclusion on such a label of designed performance data where impracticable or not cost effective, or to preclude the

display of both achieved performance and designed performance data for a particular building where both such measures are available, practicable, and cost effective.

(3) EXISTING PROGRAMS- In developing the model label, the Administrator shall consider existing programs, including--

(A) the Environmental Protection Agency's Energy Star Portfolio Manager program and the California HERS II Program Custom Approach for the achieved performance

component of the label;

(B) the Home Energy Rating System (HERS) Index system for the designed performance component of the label; and

(C) other Federal and State programs, including the Department of Energy's related programs on building technologies and those of the Federal Energy Management

Program.

(4) FINAL RULE- After providing for notice and comment, the Administrator shall publish a final rule containing the label applicable to covered building types.

(g) Demonstration Projects for Labeling Program-

(1) IN GENERAL- The Administrator shall conduct building energy performance labeling demonstration projects for different building types--

(A) to ensure the sufficiency of the current Commercial Buildings Energy Consumption Survey and other data to serve as the basis for new measurement protocols for the

achieved performance component of the building energy performance labeling program;

(B) to inform the development of measurement protocols for building types not currently covered by the Commercial Buildings Energy Consumption Survey; and

(C) to identify any additional information that needs to be developed to ensure effective use of the model label.

(2) PARTICIPATION- Such demonstration projects shall include participation of--

(A) buildings from diverse geographical and climate regions;

(B) buildings in both urban and rural areas;

(C) single-family residential buildings;

(D) multihousing residential buildings with more than 50 units, including at least one project that provides affordable housing to individuals of diverse incomes;

(E) single-occupant commercial buildings larger than 30,000 square feet;

(F) multitenanted commercial buildings larger than 50,000 square feet; and

(G) buildings from both the public and private sectors.

(3) PRIORITY- Priority in the selection of demonstration projects shall be given to projects that facilitate large-scale implementation of the labeling program for samples of

buildings across neighborhoods, geographic regions, cities, or States.

(4) FINDINGS- The Administrator shall report any findings from demonstration projects under this subsection, including an identification of any areas of needed data

improvement, to the Department of Energy's Energy Information Administration and Building Technologies Program.

(5) COORDINATION- The Administrator and the Secretary of Energy shall coordinate demonstration projects undertaken pursuant to this subsection with those undertaken as

part of the Zero-Net-Energy Commercial Buildings Initiative adopted under section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082).

(h) Implementation of Labeling Program-

(1) IN GENERAL- The Administrator, in consultation with the Secretary of Energy, shall work with all State Energy Offices established pursuant to part D of title III of the Energy

Policy and Conservation Act (42 U.S.C. 6321 et seq.) or other State authorities as necessary for the purpose of implementing the labeling program established under this section for

commercial and residential buildings.

(2) OUTREACH TO LOCAL AUTHORITIES- The Administrator shall, acting in consultation and coordination with the respective States, encourage use of the labeling program

by counties and other localities to broaden access to information about building energy use, for example, through disclosure of building label contents in tax, title, and other records

those localities maintain. For this purpose, the Administrator shall develop an electronic version of the label and information that can be readily transmitted and read in

widely-available computer programs but is protected from unauthorized manipulation.

(3) MEANS OF IMPLEMENTATION- In adopting the model labeling program established under this section, a State shall seek to ensure that labeled information be made

accessible to the public in a manner so that owners, lenders, tenants, occupants, or other relevant parties can utilize it. Such accessibility may be accomplished through--

(A) preparation, and public disclosure of the label through filing with tax and title records at the time of--

(i) a building audit conducted with support from Federal or State funds;

(ii) a building energy-efficiency retrofit conducted in response to such an audit;

(iii) a final inspection of major renovations or additions made to a building in accordance with a building permit issued by a local government entity;

(iv) a sale that is recorded for title and tax purposes consistent with paragraph (8);

(v) a new lien recorded on the property for more than a set percentage of the assessed value of the property, if that lien reflects public financial assistance for

energy-related improvements to that building; or

(vi) a change in ownership or operation of the building for purposes of utility billing; or

(B) other appropriate means.

(4) STATE IMPLEMENTATION OF PROGRAM-

(A) ELIGIBILITY- A State may become eligible to utilize allowance value to implement this program by--

(i) adopting by statute or regulation a requirement that buildings be assessed and labeled, consistent with the labeling requirements of the program established under

this section; or

(ii) adopting a plan to implement a model labeling program consistent with this section within one year of enactment of this Act, including the establishment of that

program within 3 years after the date of enactment of this Act, and demonstrating continuous progress under that plan.

(B) USE OF ALLOWANCES- Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States' SEED

Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a

distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(5) GUIDANCE- The Administrator may create or identify model programs and resources to provide guidance to offer to States and localities for creating labeling programs

consistent with the model program established under this section.

(6) PROGRESS REPORT- The Administrator, in consultation with the Secretary of Energy, shall provide a progress report to Congress not later than 3 years after the date of

enactment of this Act that--

(A) evaluates the effectiveness of efforts to advance use of the model labeling program by States and localities;

(B) recommends any legislative changes necessary to broaden the use of the model labeling program; and

(C) identifies any changes to broaden the use of the model labeling program that the Administrator has made or intends to make that do not require additional legislative

authority.

(7) STATE INFORMATION- The Administrator may require States to report to the Administrator information that the Administrator requires to provide the report required under

paragraph (6).

(8) PREVENTION OF DISRUPTION OF SALES TRANSACTIONS- No State shall implement a new labeling program pursuant to this section in a manner that requires the

labeling of a building to occur after a contract has been executed for the sale of that building and before the sales transaction is completed.

(i) Implementation of Labeling Program in Federal Buildings-

(1) USE OF LABELING PROGRAM- The Secretary of Energy and the Administrator shall use the labeling program established under this section to evaluate energy

performance in the facilities of the Department of Energy and the Environmental Protection Agency, respectively, to the extent practicable, and shall encourage and support

implementation efforts in other Federal agencies.

(2) ANNUAL PROGRESS REPORT- The Secretary of Energy and Administrator shall provide an annual progress report to Congress and the Office of Management and Budget

detailing efforts to implement this subsection, as well as any best practices or needed resources identified as a result of such efforts.

(j) Public Outreach- The Secretary of Energy and the Administrator, in consultation with nonprofit and industry stakeholders with specialized expertise, and in conjunction with other

energy efficiency public awareness efforts, shall establish a business and consumer education program to increase awareness about the importance of building energy efficiency

and to facilitate widespread use of the labeling program established under this section.

(k) Definitions- In this section:

(1) BUILDING TYPE- The term `building type' means a grouping of buildings as identified by their principal building activities, or as grouped by their use, including office

buildings, laboratories, libraries, data centers, retail establishments, hotels, warehouses, and educational buildings.

(2) MEASUREMENT PROTOCOL- The term `measurement protocol' means the methodology, prescribed by the Administrator, for defining a benchmark for building energy

performance for a specific building type and for measuring that performance against the benchmark.

(3) ACHIEVED PERFORMANCE- The term `achieved performance' means the actual energy consumption of a building as compared to a baseline building of the same type

and size, determined by actual consumption data normalized for appropriate variables.

(4) DESIGNED PERFORMANCE- The term `designed performance' means the energy consumption performance a building would achieve if operated consistent with its

design intent for building energy use, utilizing a standardized set of operational conditions informed by data collected or confirmed during an energy audit.

(l) Authorization of Appropriations- There are authorized to be appropriated--

(1) to the Administrator $50,000,000 for implementation of this section for each fiscal year from 2010 through 2020; and

(2) to the Secretary of Energy $20,000,000 for implementation of this section for fiscal year 2010 and $10,000,000 for fiscal years 2011 through 2020.

SEC. 205. TREE PLANTING PROGRAMS.

(a) Findings- The Congress finds that--

(1) the utility sector is the largest single source of greenhouse gas emissions in the United States today, producing approximately one-third of the country's emissions;

(2) heating and cooling homes accounts for nearly 60 percent of residential electricity usage in the United States;

(3) shade trees planted in strategic locations can reduce residential cooling costs by as much as 30 percent;

(4) shade trees have significant clean-air benefits associated with them;

(5) every 100 healthy large trees removes about 300 pounds of air pollution (including particulate matter and ozone) and about 15 tons of carbon dioxide from the air each year;

(6) tree cover on private property and on newly-developed land has declined since the 1970s, even while emissions from transportation and industry have been rising; and

(7) in over a dozen test cities across the United States, increasing urban tree cover has generated between two and five dollars in savings for every dollar invested in such tree

planting.

(b) Definitions- As used in this section:

(1) The term `Secretary' refers to the Secretary of Energy.

(2) The term `retail power provider' means any entity authorized under applicable State or Federal law to generate, distribute, or provide retail electricity, natural gas, or fuel oil

service.

(3) The term `tree-planting organization' means any nonprofit or not-for-profit group which exists, in whole or in part, to--

(A) expand urban and residential tree cover;

(B) distribute trees for planting;

(C) increase awareness of the environmental and energy-related benefits of trees;

(D) educate the public about proper tree planting, care, and maintenance strategies; or

(E) carry out any combination of the foregoing activities.

(4) The term `tree-siting guidelines' means a comprehensive list of science-based measurements outlining the species and minimum distance required between trees

planted pursuant to this section, in addition to the minimum required distance to be maintained between such trees and--

(A) building foundations;

(B) air conditioning units;

(C) driveways and walkways;

(D) property fences;

(E) preexisting utility infrastructure;

(F) septic systems;

(G) swimming pools; and

(H) other infrastructure as deemed appropriate.

(5) The terms `small office', `small office buildings', and `small office settings' means nonresidential buildings or structures zoned for business purposes that are 20,000

square feet or less in total area.

(c) Purposes- The purpose of this section is to establish a grant program to assist retail power providers with the establishment and operation of targeted tree-planting programs

in residential and small office settings, for the following purposes:

(1) Reducing the peak-load demand for electricity from residences and small office buildings during the summer months through direct shading of buildings provided by

strategically planted trees.

(2) Reducing wintertime demand for energy from residences and small office buildings by blocking cold winds from reaching such structures, which lowers interior

temperatures and drives heating demand.

(3) Protecting public health by removing harmful pollution from the air.

(4) Utilizing the natural photosynthetic and transpiration process of trees to lower ambient temperatures and absorb carbon dioxide, thus mitigating the effects of climate

change.

(5) Lowering electric bills for residential and small office ratepayers by limiting electricity consumption without reducing benefits.

(6) Relieving financial and demand pressure on retail power providers that stems from large peak-load energy demand.

(7) Protecting water quality and public health by reducing stormwater runoff and keeping harmful pollutants from entering waterways.

(8) Ensuring that trees are planted in locations that limit the amount of public money needed to maintain public and electric infrastructure.

(d) General Authority-

(1) ASSISTANCE- The Secretary is authorized to provide financial, technical, and related assistance to retail power providers to assist with the establishment of new, or

continued operation of existing, targeted tree-planting programs for residences and small office buildings.

(2) PUBLIC RECOGNITION INITIATIVE- In carrying out the authority provided under this section, the Secretary shall also create a national public recognition initiative to

encourage participation in tree-planting programs by retail power providers.

(3) ELIGIBILITY- Only those programs which utilize targeted, strategic tree-siting guidelines to plant trees in relation to building location, sunlight, and prevailing wind direction

shall be eligible for assistance under this section.

(4) REQUIREMENTS- In order to qualify for assistance under this section, a tree-planting program shall meet each of the following requirements:

(A) The program shall provide free or discounted shade-providing or wind-reducing trees to residential and small office consumers interested in lowering their home energy

costs.

(B) The program shall optimize the electricity-consumption reduction benefit of each tree by planting in strategic locations around a given residence or small office.

(C) The program shall either--

(i) provide maximum amounts of shade during summer intervals when residences and small offices are exposed to the most sun intensity; or

(ii) provide maximum amounts of wind protection during fall and winter intervals when residences and small offices are exposed to the most wind intensity.

(D) The program shall use the best available science to create tree siting guidelines which dictate where the optimum tree species are best planted in locations that

achieve maximum reductions in consumer energy demand while causing the least disruption to public infrastructure, considering overhead and underground facilities.

(E) The program shall receive certification from the Secretary that it is designed to achieve the goals set forth in subparagraphs (A) through (D). In designating criteria for

such certification, the Secretary shall collaborate with the United States Forest Service's Urban and Community Forestry Program to ensure that certification requirements are

consistent with such above goals.

(5) NEW PROGRAM FUNDING SHARE- The Secretary shall ensure that no less than 30 percent of the funds made available under this section are distributed to retail power

providers which--

(A) have not previously established or operated qualified tree-planting programs; or

(B) are operating qualified tree-planting programs which were established no more than three years prior to the date of enactment of this section.

(e) Agreements Between Electricity Providers and Tree-Planting Organizations-

(1) GRANT AUTHORIZATION- In providing assistance under this section, the Secretary is authorized to award grants only to retail power providers that have entered into binding

legal agreements with nonprofit tree-planting organizations.

(2) CONDITIONS OF AGREEMENT- Those agreements between retail power providers and tree-planting organizations shall set forth conditions under which nonprofit

tree-planting organizations shall provide targeted tree-planting programs which may require these organizations to--

(A) participate in local technical advisory committees responsible for drafting general tree-siting guidelines and choosing the most effective species of trees to plant in given

locations;

(B) coordinate volunteer recruitment to assist with the physical act of planting trees in residential locations;

(C) undertake public awareness campaigns to educate local residents about the benefits, cost savings, and availability of free shade trees;

(D) establish education and information campaigns to encourage recipients to maintain their shade trees over the long term;

(E) serve as the point of contact for existing and potential residential participants who have questions or concerns regarding the tree-planting program;

(F) require tree recipients to sign agreements committing to voluntary stewardship and care of provided trees;

(G) monitor and report on the survival, growth, overall health, and estimated energy savings of provided trees up until the end of their establishment period which shall be no

less than five years; and

(H) ensure that trees planted near existing power lines will not interfere with energized electricity distribution lines when mature, and that no new trees will be planted under

or adjacent to high-voltage electric transmission lines without prior consultation with the applicable retail power provider receiving assistance under this section.

(3) LACK OF NONPROFIT ORGANIZATION- If qualified nonprofit or not-for-profit tree planting organizations do not exist or operate within areas served by retail power providers

applying for assistance under this section, the requirements of this section shall apply to binding legal agreements entered into by such retail power providers and one of the

following entities:

(A) Local municipal governments with jurisdiction over the urban or suburban forest.

(B) The State Forester for the State in which the tree planting program will operate.

(C) The United States Forest Service's Urban and Community Forestry representative for the State in which the tree-planting program will operate.

(D) A landscaping services company that is--

(i) identified in consultation with a national or State nonprofit or not-for-profit tree-planting organization;

(ii) licensed to operate in the State in which the tree-planting program will operate; and

(iii) a business as defined by the United States Census Bureau's 2007 North American Industry Classification System Code 561730.

(f) Technical Advisory Committees-

(1) DESCRIPTION- In order to qualify for assistance under this section, the retail power provider shall establish and consult with a local technical advisory committee which

shall provide advice and consultation to the program, and may--

(A) design and adopt an approved plant list that emphasizes the use of hardy, noninvasive tree species and, where geographically appropriate, the use of native, or

site-adapted, or low water-use shade trees;

(B) design and adopt planting, installation, and maintenance specifications and create a process for inspection and quality control;

(C) ensure that tree recipients are educated to care for and maintain their trees over the long term;

(D) help the public become more engaged and educated in the planting and care of shade trees;

(E) prioritize which sites receive trees, giving preference to locations with the most potential for energy conservation and secondary preference to areas where the average

annual income is below the regional median; and

(F) assist with monitoring and collection of data on tree health, tree survival, and energy conservation benefits generated under this section.

(2) COMPENSATION- Individuals serving on local technical advisory committees shall not receive compensation for their service.

(3) COMPOSITION- Local technical advisory committees shall be composed of representatives from public, private, and nongovernmental agencies with expertise in

demand-side energy efficiency management, urban forestry, or arboriculture, and shall be composed of the following:

(A) Up to 4 persons, but no less than one person, representing the retail power provider receiving assistance under this section.

(B) Up to 4 persons, but no less than one person, representing the local tree-planting organization which will partner with the retail power provider to carry out this section.

(C) Up to 3 persons representing local nonprofit conservation or environmental organizations. Preference shall be given to those entities which are organized under section

501(c)(3) of the Internal Revenue Code of 1986, and which have demonstrated expertise engaging the public in energy conservation, energy efficiency, or green building practices or a

combination thereof, such that no single organization is represented by more than one individual under this paragraph.

(D) Up to 2 persons representing a local affordable housing agency, affordable housing builder, or community development corporation.

(E) Up to 3, but no less than one, persons representing local city or county government for each municipality where a shade tree-planting program will take place; at least

one of these representatives shall be the city or county forester, city or county arborist, or functional equivalent.

(F) Up to one person representing the local government agency responsible for management of roads, sewers, and infrastructure, including but not limited to public works

departments, transportation agencies, or equivalents.

(G) Up to 3 persons representing the nursery and landscaping industry.

(H) Up to 3 persons representing the research community or academia with expertise in natural resources or energy management issues.

(4) CHAIRPERSON- Each local technical advisory committee shall elect a chairperson to preside over Committee meetings, act as a liaison to governmental and other outside

entities, and direct the general operation of the committee; only committee representatives from paragraph (3)(A) or paragraph (3)(B) of this subsection shall be eligible to act as local

technical advisory committee chairpersons.

(5) CREDENTIALS- At least one of the members of each local technical advisory committee shall be certified with one or more of the following credentials: International Society

of Arboriculture; Certified Arborist, ISA; Certified Arborist Municipal Specialist, ISA; Certified Arborist Utility Specialist, ISA; Board Certified Master Arborist; or Registered Landscape

Architect recommended by the American Society of Landscape Architects.

(g) Cost-Share Program-

(1) FEDERAL SHARE- The Federal share of support for projects funded under this section shall not exceed 50 percent of the cost of such project and shall be provided on a

matching basis.

(2) NON-FEDERAL SHARE- The non-Federal share of such costs may be paid or contributed by any governmental or nongovernmental entity other than from funds derived

directly or indirectly from an agency or instrumentality of the United States.

(h) Rulemaking-

(1) RULEMAKING PERIOD- The Secretary shall be authorized to solicit comments and initiate a rulemaking period that shall last no more than 6 months after the date of

enactment of this section.

(2) COMPETITIVE GRANT RULE- At the conclusion of the rulemaking period under paragraph (1), the Secretary shall promulgate a rule governing a public, competitive grants

process through which retail power providers may apply for Federal support under this section.

(i) Nonduplicity- Nothing in this section shall be construed to supersede, duplicate, cancel, or negate the programs or authorities provided under section 9 of the Cooperative

Forestry Assistance Act of 1978 (92 Stat. 369; Public Law 95-313; 16 U.S.C. 2105).

(j) Authorization of Appropriations- There are hereby authorized to be appropriated such sums as may be necessary for the implementation of this section.

SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

Section 453(c)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(c)(1)) is amended by inserting `but not later than 2 years after the date of enactment of

this Act' after `described in subsection (b)'.

Subtitle B--Lighting and Appliance Energy Efficiency Programs

SEC. 211. LIGHTING EFFICIENCY STANDARDS.

(a) Outdoor Lighting-

(1) DEFINITIONS-

(A) Section 340(1) of the Energy Policy and Conservation Act (42 U.S.C. 6311(1)) is amended by striking subparagraph (L) and inserting the following:

`(L) Outdoor luminaires.

`(M) Outdoor high light output lamps.

`(N) Any other type of industrial equipment which the Secretary classifies as covered equipment under section 341(b).'.

(B) Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended as adding at the end the following:

`(25) The term `luminaire' means a complete lighting unit consisting of one or more light sources and ballast(s), together with parts designed to distribute the light, to position

and protect such lamps, and to connect such light sources to the power supply.

`(26) The term `outdoor luminaire' means a luminaire that is listed as suitable for wet locations pursuant to Underwriters Laboratories Inc. standard UL 1598 and is labeled as

`Suitable for Wet Locations' consistent with section 410.4(A) of the National Electrical Code 2005, or is designed for roadway illumination and meets the requirements of Addendum A

for IESNA TM-15-07: Backlight, Uplight, and Glare (BUG) Ratings, except for--

`(A) luminaires designed for outdoor video display images that cannot be used in general lighting applications;

`(B) portable luminaires designed for use at construction sites;

`(C) luminaires designed for continuous immersion in swimming pools and other water features;

`(D) seasonal luminaires incorporating solely individual lamps rated at 10 watts or less;

`(E) luminaires designed to be used in emergency conditions that incorporate a means of charging a battery and a device to switch the power supply to emergency lighting

loads automatically upon failure of the normal power supply;

`(F) components used for repair of installed luminaries and that meet the requirements of section 342(h);

`(G) a luminaire utilizing an electrode-less fluorescent lamp as the light source;

`(H) decorative gas lighting systems;

`(I) luminaires designed explicitly for lighting for theatrical purposes, including performance, stage, film production, and video production;

`(J) luminaires designed as theme elements in theme/amusement parks and that cannot be used in most general lighting applications;

`(K) luminaires designed explicitly for vehicular roadway tunnels designed to comply with ANSI/IESNA RP-22-05;

`(L) luminaires designed explicitly for hazardous locations meeting UL Standard 844;

`(M) searchlights;

`(N) luminaires that are designed to be recessed into a building, and that cannot be used in most general lighting applications;

`(O) a luminaire rated only for residential applications utilizing a light source or sources regulated under the amendments made by section 321 of the Energy Independence

and Security Act of 2007 and with a light output no greater than 2,600 lumens;

`(P) a residential pole-mounted luminaire that is not rated for commercial use utilizing a light source or sources meeting the efficiency requirements of section 231 of the

Energy Independence and Security Act of 2007 and mounted on a post or pole not taller than 10.5 feet above ground and with a light output not greater than 2,600 lumens;

`(Q) a residential fixture with E12 (Candelabra) bases that is rated for not more than 300 watts total; or

`(R) a residential fixture with medium screw bases that is rated for not more than 145 watts.

`(27) The term `outdoor high light outputlamp' means a lamp that--

`(A) has a rated lumen output not less than 2601 lumens;

`(B) is capable of being operated at a voltage not less than 110 volts and not greater than 300 volts, or driven at a constant current of 6.6 amperes;

`(C) is not a Parabolic Aluminized Reflector lamp; and

`(D) is not a J-type double-ended (T-3) halogen quartz lamp, utilizing R-7S bases, that is manufactured before January 1, 2015.

`(28) The term `outdoor lighting control' means a device incorporated in a luminaire that receives a signal, from either a sensor (such as an occupancy sensor, motion sensor,

or daylight sensor) or an input signal (including analog or digital signals communicated through wired or wireless technology), and can adjust the light level according to the signal.'.

(2) STANDARDS- Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:

`(g) Outdoor Luminaires-

`(1) Each outdoor luminaire manufactured on or after January 1, 2011, shall--

`(A) have an initial luminaire efficacy of at least 50 lumens per watt; and

`(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.

`(2) Each outdoor luminaire manufactured on or after January 1, 2013, shall--

`(A) have an initial luminaire efficacy of at least 70 lumens per watt; and

`(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.

`(3) Each outdoor luminaire manufactured on or after January 1, 2015, shall--

`(A) have an initial luminaire efficacy of at least 80 lumens per watt; and

`(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.65.

`(4) In addition to the requirements of paragraphs (1) through (3), each outdoor luminaire manufactured on or after January 1, 2011, shall have the capability of producing at

least two different light levels, including 100 percent and 60 percent of full lamp output as tested with the maximum rated lamp per UL1598 or the manufacturer's maximum specified

for the luminaire under test.

`(5)(A) Not later than January 1, 2017, the Secretary shall issue a final rule amending the applicable standards established in paragraphs (3) and (4) if technologically feasible

and economically justified.

`(B) A final rule issued under subparagraph (A) shall establish efficiency standards at the maximum level that is technically feasible and economically justified, as provided in

subsections (o) and (p) of section 325. The Secretary may also, in such rulemaking, amend or discontinue the product exclusions listed in section 340(26)(A) through (P), or amend

the lumen maintenance requirements in paragraph (3) if the Secretary determines that such amendments are consistent with the purposes of this Act.

`(C) If the Secretary issues a final rule under subparagraph (A) establishing amended standards, the final rule shall provide that the amended standards apply to products

manufactured on or after January 1, 2020, or one year after the date on which the final amended standard is published, whichever is later.

`(h) Outdoor High Light Output Lamps- Each outdoor high light output lamp manufactured on or after January 1, 2012, shall have a lighting efficiency of at least 45 lumens per

watt.'.

(3) 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:

`(10) OUTDOOR LIGHTING-

`(A) With respect to outdoor luminaires and outdoor high light output lamps, the test procedures shall be based upon the test procedures specified in illuminating

engineering society procedures LM-79 as of March 1, 2009, and LM-31, and/or other appropriate consensus test procedures developed by the Illuminating Engineering Society or

other appropriate consensus standards bodies.

`(B) If illuminating engineering society procedure LM--79 is amended, the Secretary shall amend the test procedures established in subparagraph (A) as necessary to be

consistent with the amended LM-79 test procedure, unless the Secretary determines, by rule, published in the Federal Register and supported by clear and convincing evidence, that

to do so would not meet the requirements for test procedures under paragraph (2).

`(C) The Secretary may revise the test procedures for outdoor luminaires or outdoor high light output lamps by rule consistent with paragraph (2), and may incorporate as

appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.'.

(4) PREEMPTION- Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) is amended by adding at the end the following:

`(i)(1) Except as provided in paragraph (2), section 327 shall apply to outdoor luminaires to the same extent and in the same manner as the section applies under part B.

`(2) Any State standard that is adopted on or before January 1, 2015, pursuant to a statutory requirement to adopt efficiency standards for reducing outdoor lighting energy use

enacted prior to January 31, 2008, shall not be preempted.'.

(5) ENERGY EFFICIENCY STANDARDS FOR CERTAIN LUMINAIRES- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall, in consultation

with the National Electrical Manufacturers Association, collect data for United States sales of luminaires described in section 340(26)(H) and (M) of the Energy Policy and

Conservation Act, to determine the historical growth rate. If the Secretary finds that the growth in market share of such luminaires exceeds twice the year to year rate of the average of

the previous three years, then the Secretary shall within 12 months initiate a rulemaking to determine if such exclusion should be eliminated, if substitute products exist that perform

more efficiently and fulfill the performance functions of these luminaires.

(b) Portable Lighting-

(1) PORTABLE LIGHT FIXTURES-

(A) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended by adding at the end the following:

`(67) ART WORK LIGHT FIXTURE- The term `art work light fixture' means a light fixture designed only to be mounted directly to an art work and for the purpose of illuminating

that art work.

`(68) LED LIGHT ENGINE- The term `LED light engine' or `LED light engine with integral heat sink' means a subsystem of an LED light fixture that--

`(A) includes 1 or more LED components, including--

`(i) an LED driver power source with electrical and mechanical interfaces; and

`(ii) an integral heat sink to provide thermal dissipation; and

`(B) may be designed to accept additional components that provide aesthetic, optical, and environmental control.

`(69) LED LIGHT FIXTURE- The term `LED light fixture' means a complete lighting unit consisting of--

`(A) an LED light source with 1 or more LED lamps or LED light engines; and

`(B) parts--

`(i) to distribute the light;

`(ii) to position and protect the light source; and

`(iii) to connect the light source to electrical power.

`(70) LIGHT FIXTURE- The term `light fixture' means a product designed to provide light that includes--

`(A) at least 1 lamp socket; and

`(B) parts--

`(i) to distribute the light;

`(ii) position and protect 1 or more lamps; and

`(iii) to connect 1 or more lamps to a power supply.

`(71) PORTABLE LIGHT FIXTURE-

`(A) IN GENERAL- The term `portable light fixture' means a light fixture that has a flexible cord and an attachment plug for connection to a nominal 120-volt circuit that--

`(i) allows the user to relocate the product without any rewiring; and

`(ii) typically can be controlled with a switch located on the product or the power cord of the product.

`(B) EXCLUSIONS- The term `portable light fixture' does not include--

`(i) direct plug-in night lights, sun or heat lamps, medical or dental lights, portable electric hand lamps, signs or commercial advertising displays, photographic lamps,

germicidal lamps, or light fixtures for marine use or for use in hazardous locations (as those terms are defined in ANSI/NFPA 70 of the National Electrical Code); or

`(ii) decorative lighting strings, decorative lighting outfits, or electric candles or candelabra without lamp shades that are covered by Underwriter Laboratories (UL)

standard 588, `Seasonal and Holiday Decorative Products'.'.

(B) COVERAGE-

(i) IN GENERAL- Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)) is amended--

(I) by redesignating paragraph (20) as paragraph (24); and

(II) by inserting after paragraph (19) the following:

`(20) Portable light fixtures.'.

(ii) CONFORMING AMENDMENTS- Section 325(l) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by striking `paragraph (19)' each place it

appears in paragraphs (1) and (2) and inserting `paragraph (24)'.

(C) 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:

`(19) LED FIXTURES AND LED LIGHT ENGINES- Test procedures for LED fixtures and LED light engines shall be based on Illuminating Engineering Society of North America

(IESNA) test procedure LM-79, Approved Method for Electrical and Photometric Testing of Solid-State Lighting Devices, and IESNA-approved test procedure for testing LED light

engines.'.

(D) STANDARDS- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended--

(i) by redesignating subsection (ii) as subsection (oo);

(ii) in subsection (oo)(2), as redesignated in clause (i) of this subparagraph, by striking `(hh)' each place it appears and inserting `(mm)'; and

(iii) by inserting after subsection (hh) the following:

`(ii) Portable Light Fixtures-

`(1) IN GENERAL- Subject to paragraphs (2) and (3), portable light fixtures manufactured on or after January 1, 2012, shall meet 1 or more of the following requirements:

`(A) Be a fluorescent light fixture that meets the requirements of the Energy Star Program for Residential Light Fixtures, Version 4.2.

`(B) Be equipped with only 1 or more GU-24 line-voltage sockets, not be rated for use with incandescent lamps of any type (as defined in ANSI standards), and meet the

requirements of version 4.2 of the Energy Star program for residential light fixtures.

`(C) Be an LED light fixture or a light fixture with an LED light engine and comply with the following minimum requirements:

`(i) Minimum light output: 200 lumens (initial).

`(ii) Minimum LED light engine efficacy: 40 lumens/watt installed in fixtures that meet the minimum light fixture efficacy of 29 lumens/watt or, alternatively, a minimum

LED light engine efficacy of 60 lumens/watt for fixtures that do not meet the minimum light fixture efficacy of 29 lumens/watt.

`(iii) All portable fixtures shall have a minimum LED light fixture efficacy of 29 lumens/watt and a minimum LED light engine efficacy of 60 lumens/watt by January 1,

2016.

`(iv) Color Correlated Temperature (CCT): 2700K through 4000K.

`(v) Minimum Color Rendering Index (CRI): 75.

`(vi) Power factor equal to or greater than 0.70.

`(vii) Portable luminaries that have internal power supplies shall have zero standby power when the luminaire is turned off.

`(viii) LED light sources shall deliver at least 70 percent of initial lumens for at least 25,000 hours.

`(D)(i) Be equipped with an ANSI-designated E12, E17, or E26 screw-based socket and be prepackaged and sold together with 1 screw-based compact fluorescent lamp

or screw-based LED lamp for each screw-based socket on the portable light fixture.

`(ii) The compact fluorescent or LED lamps prepackaged with the light fixture shall be fully compatible with any light fixture controls incorporated into the light fixture (for

example, light fixtures with dimmers shall be packed with dimmable lamps).

`(iii) Compact fluorescent lamps prepackaged with light fixtures shall meet the requirements of the Energy Star Program for CFLs Version 4.0.

`(iv) Screw-based LED lamps shall comply with the minimum requirements described in subparagraph (C).

`(E) Be equipped with 1 or more single-ended, non-screw based halogen lamp sockets (line or low voltage), a dimmer control or high-low control, and be rated for a

maximum of 100 watts.

`(2) REVIEW-

`(A) REVIEW- The Secretary shall review the criteria and standards established under paragraph (1) to determine if revised standards are technologically feasible and

economically justified.

`(B) COMPONENTS- The review shall include consideration of--

`(i) whether a separate compliance procedure is still needed for halogen fixtures described in subparagraph (E) and, if necessary, what an appropriate standard for

halogen fixtures shall be;

`(ii) whether the specific technical criteria described in subparagraphs (A), (C), and (D)(iii) should be modified; and

`(iii) which fixtures should be exempted from the light fixture efficacy standard as of January 1, 2016, because the fixtures are primarily decorative in nature (as defined by

the Secretary) and, even if exempted, are likely to be sold in limited quantities.

`(C) TIMING-

`(i) DETERMINATION- Not later than January 1, 2014, the Secretary shall publish amended standards, or a determination that no amended standards are justified, under

this subsection.

`(ii) STANDARDS- Any standards under this paragraph shall take effect on January 1, 2016.

`(3) ART WORK LIGHT FIXTURES- Art work light fixtures manufactured on or after January 1, 2012, shall--

`(A) comply with paragraph (1); or

`(B)(i) contain only ANSI-designated E12 screw-based line-voltage sockets;

`(ii) have not more than 3 sockets;

`(iii) be controlled with an integral high/low switch;

`(iv) be rated for not more than 25 watts if fitted with 1 socket; and

`(v) be rated for not more than 15 watts per socket if fitted with 2 or 3 sockets.

`(4) EXCEPTION FROM PREEMPTION- Notwithstanding section 327, Federal preemption shall not apply to a regulation concerning portable light fixtures adopted by the

California Energy Commission on or before January 1, 2014.'.

(2) GU-24 BASE LAMPS-

(A) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by paragraph (1)(A)) is amended by adding at the end the following:

`(72) GU-24- The term `GU-24' means the designation of a lamp socket, based on a coding system by the International Electrotechnical Commission, under which--

`(A) `G' indicates a holder and socket type with 2 or more projecting contacts, such as pins or posts;

`(B) `U' distinguishes between lamp and holder designs of similar type that are not interchangeable due to electrical or mechanical requirements; and

`(C) 24 indicates the distance in millimeters between the electrical contact posts.

`(73) GU-24 ADAPTOR-

`(A) IN GENERAL- The term `GU-24 Adaptor' means a 1-piece device, pig-tail, wiring harness, or other such socket or base attachment that--

`(i) connects to a GU-24 socket on 1 end and provides a different type of socket or connection on the other end; and

`(ii) does not alter the voltage.

`(B) EXCLUSION- The term `GU-24 Adaptor' does not include a fluorescent ballast with a GU-24 base.

`(74) GU-24 BASE LAMP- `GU-24 base lamp' means a light bulb designed to fit in a GU-24 socket.'.

(B) STANDARDS- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) (as amended by paragraph (1)(D)) is amended by inserting after subsection (ii)

the following:

`(jj) GU-24 Base Lamps-

`(1) IN GENERAL- A GU-24 base lamp shall not be an incandescent lamp as defined by ANSI.

`(2) GU-24 ADAPTORS- GU-24 adaptors shall not adapt a GU-24 socket to any other line voltage socket.'.

(3) STANDARDS FOR CERTAIN INCANDESCENT REFLECTOR LAMPS- Section 325(i) of the Energy Policy and Conservation Act (42 U.S.C. 6295(i)), as amended by section

161(a)(12) of this Act, is amended by adding at the end the following:

`(9) CERTAIN INCANDESCENT REFLECTOR LAMPS- (A) No later than 12 months after enactment of this paragraph, the Secretary shall publish a final rule establishing

standards for incandescent reflector lamp types described in paragraph (1)(D). Such standards shall be effective on July 1, 2013.

`(B) Any rulemaking for incandescent reflector lamps completed after enactment of this section shall consider standards for all incandescent reflector lamps, inclusive of those

specified in paragraph (1)(C).

`(10) REFLECTOR LAMPS- No later than January 1, 2015, the Secretary shall publish a final rule establishing and amending standards for reflector lamps, including

incandescent reflector lamps. Such standards shall be effective no sooner than three years after publication of the final rule. Such rulemaking shall consider incandescent and

nonincandescent technologies. Such rulemaking shall consider a new metric other than lumens-per-watt based on the photometric distribution of light from such lamps.'.

SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.

(a) Standards for Water Dispensers, Hot Food Holding Cabinets, and Portable Electric Spas-

(1) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291), as amended by section 211 of this Act, is further amended by adding at the end the

following:

`(75) The term `water dispenser' means a factory-made assembly that mechanically cools and heats potable water and that dispenses the cooled or heated water by integral

or remote means.

`(76) The term `bottle-type water dispenser' means a drinking water dispenser designed for dispensing both hot and cold water that uses a removable bottle or container as

the source of potable water.

`(77) The term `commercial hot food holding cabinet' means a heated, fully-enclosed compartment with one or more solid or glass doors that is designed to maintain the

temperature of hot food that has been cooked in a separate appliance. Such term does not include heated glass merchandizing cabinets, drawer warmers, commercial hot food

holding cabinets with interior volumes of less than 8 cubic feet, or cook-and-hold appliances.

`(78) The term `portable electric spa' means a factory-built electric spa or hot tub, supplied with equipment for heating and circulating water.'.

(2) COVERAGE- Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)), as amended by section 211(b)(1)(B) of this Act, is further amended by inserting

after paragraph (20) the following new paragraphs:

`(21) Bottle type water dispensers.

`(22) Commercial hot food holding cabinets.

`(23) Portable electric spas.'.

(3) TEST PROCEDURES- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by section 211(b)(1)(C) of this Act, is further amended by

adding at the end the following:

`(20) BOTTLE TYPE WATER DISPENSERS- Test procedures for bottle type water dispensers shall be based on `Energy Star Program Requirements for Bottled Water Coolers

version 1.1' published by the Environmental Protection Agency. Units with an integral, automatic timer shall not be tested using section 4D, `Timer Usage,' of the test criteria.

`(21) COMMERCIAL HOT FOOD HOLDING CABINETS- Test procedures for commercial hot food holding cabinets shall be based on the test procedures described in

ANSI/ASTM F2140-01 (Test for idle energy rate-dry test). Interior volume shall be based on the method shown in the Environmental Protection Agency's `Energy Star Program

Requirements for Commercial Hot Food Holding Cabinets' as in effect on August 15, 2003.

`(22) PORTABLE ELECTRIC SPAS- Test procedures for portable electric spas shall be based on the test method for portable electric spas contained in section 1604, title 20,

California Code of Regulations as amended on December 3, 2008. When the American National Standards Institute publishes a test procedure for portable electric spas, the

Secretary shall revise the Department of Energy's procedure.'.

(4) STANDARDS- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295), as amended by section 211 of this Act, is further amended by adding after

subsection (jj) the following:

`(kk) Bottle Type Water Dispensers- Effective January 1, 2012, bottle-type water dispensers designed for dispensing both hot and cold water shall not have standby energy

consumption greater than 1.2 kilowatt-hours per day.

`(ll) Commercial Hot Food Holding Cabinets- Effective January 1, 2012, commercial hot food holding cabinets with interior volumes of 8 cubic feet or greater shall have a

maximum idle energy rate of 40 watts per cubic foot of interior volume.

`(mm) Portable Electric Spas- Effective January 1, 2012, portable electric spas shall not have a normalized standby power greater than 5(V 2/3 ) Watts where V=the fill volume in

gallons.

`(nn) Revisions- The Secretary of Energy shall consider revisions to the standards in subsections (kk), (ll), and (mm) in accordance with subsection (o) and publish a final rule no

later than January 1, 2013 establishing such revised standards, or make a finding that no revisions are technically feasible and economically justified. Any such revised standards

shall take effect January 1, 2016.'.

(b) Commercial Furnace Efficiency Standards- Section 342(a) of the Energy Policy and Conservation Act (42 U.S.C. 6312(a)) is amended by inserting after paragraph (10) the

following new paragraph:

`(11) WARM AIR FURNACES- Each warm air furnace with an input rating of 225,000 Btu per hour or more and manufactured after January 1, 2011, shall meet the following

standard levels:

`(A) GAS-FIRED UNITS-

`(i) Minimum thermal efficiency of 80 percent.

`(ii) Include an interrupted or intermittent ignition device.

`(iii) Have jacket losses not exceeding 0.75 percent of the input rating.

`(iv) Have either power venting or a flue damper.

`(B) OIL-FIRED UNITS-

`(i) Minimum thermal efficiency of 81 percent.

`(ii) Have jacket losses not exceeding 0.75 percent of the input rating.

`(iii) Have either power venting or a flue damper.'.

SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.

(a) Definition of Energy Conservation Standard- Section 321(6) of the Energy Policy and Conservation Act (42 U.S.C. 6291(6)) is amended to read as follows:

`(6) ENERGY CONSERVATION STANDARD-

`(A) IN GENERAL- The term `energy conservation standard' means 1 or more performance standards that--

`(i) for covered products (excluding clothes washers, dishwashers, showerheads, faucets, water closets, and urinals), prescribe a minimum level of energy efficiency or

a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323;

`(ii) for showerheads, faucets, water closets, and urinals, prescribe a minimum level of water efficiency or a maximum quantity of water use, determined in accordance

with test procedures prescribed under section 323; and

`(iii) for clothes washers and dishwashers--

`(I) prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section

323; and

`(II) may include a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with those test procedures.

`(B) INCLUSIONS- The term `energy conservation standard' includes--

`(i) 1 or more design requirements, if the requirements were established--

`(I) on or before the date of enactment of this subclause;

`(II) as part of a direct final rule under section 325(p)(4); or

`(III) as part of a final rule published on or after January 1, 2012, and

`(ii) any other requirements that the Secretary may prescribe under section 325(r).

`(C) EXCLUSION- The term `energy conservation standard' does not include a performance standard for a component of a finished covered product, unless regulation of

the component is specifically authorized or established pursuant to this title.'.

(b) Adopting Consensus Test Procedures and Test Procedures in Use Elsewhere- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by

sections 211 and 212 of this Act, is further amended by adding the following new paragraph after paragraph (22):

`(23) CONSENSUS AND ALTERNATE TEST PROCEDURES-

`(A) RECEIPT OF JOINT RECOMMENDATION OR ALTERNATE TESTING PROCEDURE- On receipt of--

`(i) 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 the testing procedure for a covered product; or

`(ii) a submission of a testing procedure currently in use for a covered product by a State, nation, or group of nations--

`(I) if the Secretary determines that the recommended testing procedure contained in the statement or submission is in accordance with subsection (b)(3), the

Secretary may issue a final rule that establishes an energy or water conservation testing procedure that is published simultaneously with a notice of proposed rulemaking that

proposes a new or amended energy or water conservation testing procedure that is identical to the testing procedure established in the final rule to establish the recommended

testing procedure (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 or submission, 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)(ii)(I).

`(C) WITHDRAWAL OF DIRECT FINAL RULES-

`(i) IN GENERAL- Not later than 120 days after the date on which a direct final rule issued under subparagraph (A)(ii)(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)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 paragraph (3) or any other applicable law.

`(ii) ACTION ON WITHDRAWAL- On withdrawal of a direct final rule under clause (i), the Secretary shall--

`(I) proceed with the notice of proposed rulemaking published simultaneously with the direct final rule as described in subparagraph (A)(ii)(I); and

`(II) 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 (b).

`(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 test procedures relating to the direct final rule.'.

(c) Updating Television Test Methods- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by sections 211 and 212 of this Act, and

subsection (b) of this section, is further amended by adding at the end the following new paragraph:

`(24) TELEVISIONS- (A) On the date of enactment of this paragraph, Appendix H to Subpart B of Part 430 of the United States Code of Federal Regulations, `Uniform Test

Method for Measuring the Energy Consumption of Television Sets', is repealed.

`(B) No later than 12 months after the date of enactment of this paragraph the Secretary shall publish in the Federal Register a final rule prescribing a new test method for

televisions.'.

(d) Criteria for Prescribing New or Amended Standards- (1) Section 325(o)(2)(B)(i) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)(2)(B)(i)) is amended as follows:

(A) By striking `and' at the end of subclause (VI).

(B) By redesignating subclause (VII) as subclause (XI).

(C) By inserting the following new subclauses after subclause (VI):

`(VII) the estimated value of the carbon dioxide and other emission reductions that will be achieved by virtue of the higher energy efficiency of the covered products resulting

from the imposition of the standard;

`(VIII) the estimated impact of standards for a particular product on average consumer energy prices;

`(IX) the increased energy efficiency that may be attributable to the installation of Smart Grid technologies or capabilities in the covered products, if applicable in the

determination of the Secretary;

`(X) the availability in the United States or in other nations of examples or prototypes of covered products that achieve significantly higher efficiency standards for energy or for

water; and'.

(2) Section 325(o)(2)(B)(iii) of such Act is amended as follows:

(A) By striking `three' and inserting `5'.

(B) By inserting after the first sentence the following `For products with an average expected useful life of less than 5 years, such rebuttable presumption shall be determined

utilizing 75 percent of the product's average expected useful life as a multiplier instead of 5.'.

(C) By striking the last sentence and inserting the following: `Such a presumption may be rebutted only if the Secretary finds, based on clear, convincing, and reliable evidence,

that--

`(I) such standard level would cause serious and unavoidable hardship to the average consumer of the product, or to manufacturers supplying a significant portion of the

market for the product, that substantially outweighs the standard level's benefits;

`(II) the standard and implementing regulations cannot be designed to avoid or mitigate the hardship identified under subclause (I), through the adoption of regional standards

consistent with paragraph (6) of this subsection, or other reasonable means consistent with this part;

`(III) the same or substantially similar hardship would not occur under a standard adopted in the absence of the presumption, but that otherwise meets the requirements of this

section; and

`(IV) the hardship cannot be avoided or mitigated pursuant the procedures specified in section 504 of the Department of Energy Organization Act (42 U.S.C. 7194).

A determination by the Secretary that the criteria triggering such presumption are not met, or that the criterion for rebutting the presumption are met shall not be taken into

consideration in the Secretary's determination of whether a standard is economically justified.'.

(e) Obtaining Appliance Information From Manufacturers- Section 326(d) of the Energy Policy and Conservation Act (42 U.S.C. 6295(d)) is amended to read as follows:

`(d) Information Requirements- (1) For purposes of carrying out this part, the Secretary shall publish proposed regulations not later than one year after the date of enactment of the

American Clean Energy and Security Act of 2009, and after receiving public comment, final regulations not later than 18 months from such date of enactment under this part or other

provision of law administered by the Secretary, which shall require each manufacturer of a covered product to submit information or reports to the Secretary on an annual basis in a

form adopted by the Secretary. Such reports shall include information or data with respect to--

`(A) the manufacturers' compliance with all requirements applicable pursuant to this part;

`(B) the economic impact of any proposed energy conservation standard;

`(C) the manufacturers' annual shipments of each class or category of covered products, organized, to the maximum extent practicable, by--

`(i) energy efficiency, energy use, and, if applicable, water use;

`(ii) the presence or absence of such efficiency related or energy consuming operational characteristics or components as the Secretary determines are relevant for the

purposes of carrying out this part; and

`(iii) the State or regional location of sale, for covered products for which the Secretary may adopt regional standards; and

`(D) such other categories of information as the Secretary deems relevant to carry out this part, including such other information as may be necessary to establish and revise

test procedures, labeling rules, and energy conservation standards and to insure compliance with the requirements of this part.

`(2) In adopting regulations under this subsection, the Secretary shall consider existing public sources of information, including nationally recognized certification programs of

trade associations.

`(3) The Secretary shall exercise authority under this section in a manner designed to minimize unnecessary burdens on manufacturers of covered products.

`(4) To the extent that they do not conflict with the duties of the Secretary in carrying out this part, the provisions of section 11(d) of the Energy Supply and Environmental

Coordination Act of 1974 (15 U.S.C. 796(d)) shall apply with respect to information obtained under this subsection to the same extent and in the same manner as they apply with

respect to other energy information obtained under such section.'.

(f) State Waiver- Section 327(c) of the Energy Policy and Conservation Act (42 U.S.C. 6297(c)), as amended by section 161(a)(19) of this Act, is further amended by adding at the

end the following:

`(12) is a regulation concerning standards for hot food holding cabinets, drinking water dispensers and portable electric spas adopted by the California Energy Commission

on or before January 1, 2013.'.

(g) Waiver of Federal Preemption- Paragraph (1) of section 327(d) of the Energy Policy and Conservation Act (42 U.S.C. 6297(d)) is amended as follows:

(1) In subparagraph (A) by striking `State regulation' each place it appears and inserting `State statute or regulation'.

(2) In subparagraph (B) by adding at the end the following new sentence: `In making such a finding, the Secretary may not reject a petition for failure of the petitioning State or

river basin commission to produce confidential information maintained by any manufacturer or distributor, or group or association of manufacturers or distributors, and which the

petitioning party does not have the legal right to obtain.'.

(3) In clause (ii) of subparagraph (C) by striking `costs' each place it appears and inserting `estimated costs'.

(4) In subparagraph (C) by striking `within the context of the State's energy plan and forecast, and,'.

(h) Inclusion of Carbon Output on Appliance `Energyguide' Labels- (1) Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding

the following at the end:

`(I)(i) Not later than 90 days after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to implement the additional labeling requirements

specified in subsection (c)(1)(C) of this section with an effective date for the revised labeling requirement not later than 12 months from issuance of the final rule.

`(ii) Not later than 24 months after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).

`(iii) Not later than 90 days after issuance of the final rule as provided in this subparagraph, the Secretary shall issue calculation methods required to effectuate the labeling

requirements specified in subsection (c)(1)(C) of this section.'.

(2) Section 324(c)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6294(c)(1)) is amended--

(A) by striking `and' at the end of subparagraph (A);

(B) by striking the period at the end of subparagraph (B) and inserting a semicolon; and

(C) by adding at the end the following new subparagraphs:

`(C) for products or groups of products providing a comparable function (including the group of products comprising the heating function of heat pumps and furnaces) among

covered products listed in paragraphs (3), (4), (5), (8), (9), (10), and (11) of section 322(a) of this part, and others designated by the Secretary, the estimated total annual atmospheric

carbon dioxide emissions (or their equivalent in other greenhouse gases) associated with, or caused by, the product, calculated utilizing--

`(i) national average energy use for the product including energy consumed at the point of end use based on test procedures developed under section 323 of this part;

`(ii) national average energy consumed or lost in the production, generation, transportation, storage, and distribution of energy to the point of end use; and

`(iii) any direct emissions of greenhouse gases from the product during normal use;

`(D) in determining the national average energy consumption and total annual atmospheric carbon dioxide emissions, the Secretary shall utilize Federal Government

sources, including the Energy Information Administration Annual Energy Review, the Environmental Protection Agency eGRID data base, Environmental Protection Agency AP-42

Emission Factors as amended, and other sources determined to be appropriate by the Secretary; and

`(E) information presenting, for each product (or group of products providing the comparable function) identified in section (c)(1)(C) of this section, the estimated annual

carbon dioxide emissions calculated within the range of emissions calculated for all models of the product or group according to its function, including those models consuming

fuels and those models not consuming fuels.'.

(i) Permitting States to Seek Injunctive Enforcement- (1) Section 334 of the Energy Policy and Conservation Act (42 U.S.C. 6304) is amended to read as follows:

`SEC. 334. JURISDICTION AND VENUE.

`(a) Jurisdiction- The United States district courts shall have jurisdiction to restrain--

`(1) any violation of section 332; and

`(2) any person from distributing in commerce any covered product which does not comply with an applicable rule under section 324 or 325.

`(b) Authority- Any action referred to in subsection (a) shall be brought by the Commission or by the attorney general of a State in the name of the State, except that--

`(1) any such action to restrain any violation of section 332(a)(3) which relates to requirements prescribed by the Secretary or any violation of section 332(a)(4) which relates to

request of the Secretary under section 326(b)(2) shall be brought by the Secretary; and

`(2) any violation of section 332(a)(5) or 332(a)(7) shall be brought by the Secretary or by the attorney general of a State in the name of the State.

`(c) Venue and Service of Process- Any such action may be brought in the United States district court for a district wherein any act, omission, or transaction constituting the violation

occurred, or in such court of the district wherein the defendant is found or transacts business. In any action under this section, process may be served on a defendant in any other

district in which the defendant resides or may be found.'.

(2) The item relating to section 334 in the table of contents for such Act is amended to read as follows:

`Sec. 334. Jurisdiction and venue.'.

(j) Treatment of Appliances Within Building Codes- (1) Section 327(f)(3) of the Energy Policy and Conservation Act (42 U.S.C. 6297(f)(3)) is amended by striking subparagraphs (B)

through (G) and inserting the following:

`(B) The code meets at least one of the following requirements:

`(i) The code does not require that the covered product have an energy efficiency exceeding--

`(I) the applicable energy conservation standard established in or prescribed under section 325;

`(II) the level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d) of this section; or

`(III) the required level established in the International Energy Conservation Code or in a standard of the American Society of Heating, Refrigerating and Air-Conditioning

Engineers, or by the Secretary pursuant to section 304 of the Energy Conservation and Production Act.

`(ii) If the code uses one or more baseline building designs against which all submitted building designs are to be evaluated and such baseline building designs contain a

covered product subject to an energy conservation standard established in or prescribed under section 325, the baseline building designs are based on an efficiency level for such

covered product which meets but does not exceed one of the levels specified in clause (i).

`(iii) If the code sets forth one or more optional combinations of items which meet the energy consumption or conservation objective, in at least one combination that the

State has found to be reasonably achievable using commercially available technologies the efficiency of the covered product meets but does not exceed one of the levels specified in

clause (i).

`(C) The credit to the energy consumption or conservation objective allowed by the code for installing covered products having energy efficiencies exceeding one of the levels

specified in subparagraph (B)(i) is on a one-for-one equivalent energy use or equivalent energy cost basis, taking into account the typical lifetime of the product.

`(D) The energy consumption or conservation objective is specified in terms of an estimated total consumption of energy (which may be calculated from energy loss- or

gain-based codes) utilizing an equivalent amount of energy (which may be specified in units of energy or its equivalent cost) and equivalent lifetimes.

`(E) The estimated energy use of any covered product permitted or required in the code, or used in calculating the objective, is determined using the applicable test procedures

prescribed under section 323, except that the State may permit the estimated energy use calculation to be adjusted to reflect the conditions of the areas where the code is being

applied if such adjustment is based on the use of the applicable test procedures prescribed under section 323 or other technically accurate documented procedure.'.

(2) Section 327(f)(4)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read as follows:

`(B) If a building code requires the installation of covered products with efficiencies exceeding the levels and requirements specified in paragraph (3)(B), such requirement of the

building code shall not be applicable unless the Secretary has granted a waiver for such requirement under subsection (d) of this section.'.

SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.

(a) In General- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Administrator, shall establish a program to be known as

the `Best-in-Class Appliances Deployment Program' to--

(1) provide bonus payments to retailers or distributors under subsection (c) for sales of best-in-class high-efficiency household appliance models, high-efficiency installed

building equipment, and high-efficiency consumer electronics, with the goal of reducing life-cycle costs for consumers, encouraging innovation, and maximizing energy savings and

public benefit;

(2) provide bounties under subsection (d) to retailers for the replacement, retirement, and recycling of old, inefficient, and environmentally harmful products; and

(3) provide premium awards under subsection (e) to manufacturers for developing and producing new Superefficient Best-in-Class Products.

(b) Designation of Best-in-Class Product Models-

(1) IN GENERAL- The Secretary of Energy shall designate product models of appliances, equipment, or electronics as Best-in-Class Product models. The Secretary shall

publicly announce the Best-in-Class Product models designated under this subsection. The Secretary shall define product classes broadly and, except as provided in paragraph (2),

shall designate as Best-in-Class Product models no more than the most efficient 10 percent of the commercially available product models in a class that demonstrate, as a group, a

distinctly greater energy efficiency than the average energy efficiency of that class of appliances, equipment, or electronics. In designating models, the Secretary shall--

(A) identify commercially available models in the relevant class of products;

(B) identify the subgroup of those models that share the distinctly higher energy-efficiency characteristics that warrant designation as best-in-class; and

(C) add other models in that class to the list of Best-in-Class Product models as they demonstrate their ability to meet the higher-efficiency characteristics on which the

designation was made.

(2) PERCENTAGE EXCEPTION- If there are fewer than 10 product models in a class of products, the Secretary may designate one or more of such models as Best-in-Class

Products.

(3) REVIEW OF BEST-IN-CLASS STANDARDS- The Secretary shall review annually the product-specific criteria for designating, and the product models that qualify as,

Best-in-Class Products and, after notice and a 30-day comment period, make upwards adjustments in the efficiency criteria as necessary to maintain an appropriate ratio of such

product models to the total number of product models in the product class.

(c) Bonuses for Sales of Best-in-Class Products-

(1) IN GENERAL- The Secretary of Energy shall make bonus payments to retailers or, as provided in paragraph (5)(B), distributors for the sale of Best-in-Class Products.

(2) BONUS PROGRAM- The Secretary shall--

(A) publicly announce the availability and amount of the bonus to be paid for each sale of a Best-in-Class Product of a model designated under subsection (b); and

(B) make bonus payments in at least that amount for each Best-in-Class Product of that model sold during the 3-year period beginning on the date the model is designated

under subsection (b).

(3) UPGRADE OF BEST-IN-CLASS PRODUCT ELIGIBILITY- In conducting a review under subsection (b)(3), the Secretary shall--

(A) consider designating as a Best-in-Class Product model a Superefficient Best-in-Class Product model that has been designated pursuant to subsection (e);

(B) announce any change in the bonus payment as necessary to increase the market share of Best-in-Class Product models;

(C) list models that will be eligible for bonuses in the new amount; and

(D) continue paying bonus payments at the original level, for the sale of any models that previously qualified as Best-in-Class Products but do not qualify at the new level, for

the remainder of the 3-year period announced with the original designation.

(4) SIZE OF INDIVIDUAL BONUS PAYMENTS- (A) The size of each bonus payment under this subsection shall be the product of--

(i) an amount determined by the Secretary; and

(ii) the difference in energy consumption between the Best-in-Class Product and the average product in the product class.

(B) The Secretary shall determine the amount under subparagraph (A)(i) for each product type, in consultation with State and utility efficiency program administrators as well as

the Administrator, based on estimates of the amount of bonus payment that would provide significant incentive to increase the market share of Best-in-Class Products.

(5) ELIGIBLE BONUS RECIPIENT- (A) The Secretary shall ensure that not more than 1 bonus payment is provided under this subsection for each Best-in-Class Product.

(B) The Secretary may make distributors eligible to receive bonus payments under this subsection for sales that are not to the final end-user, to the extent that the Secretary

determines that for a particular product category distributors are well situated to increase sales of Best-in-Class Products.

(d) Bounties for Replacement, Retirement, and Recycling of Existing Low-Efficiency Products-

(1) IN GENERAL- The Secretary of Energy shall make bounty payments to retailers for the replacement, retirement, and recycling of older operating low-efficiency products that

might otherwise continue in operation.

(2) BOUNTIES- Bounties shall be payable upon documentation that the sale of a Best-in-Class Product was accompanied by the replacement, retirement, and recycling of--

(A) an inefficient but still-functioning product; or

(B) a nonfunctioning product containing a refrigerant,

by the consumer to whom the Best-in-Class Product was sold.

(3) AMOUNT-

(A) FUNCTIONING PRODUCTS- The bounty payment payable under this subsection for a product described in paragraph (2)(A) shall be based on the difference between

the estimated energy use of the product replaced and the energy use of an average new product in the product class, over the estimated remaining lifetime of the product that was

replaced.

(B) NONFUNCTIONING PRODUCTS CONTAINING REFRIGERANTS- The bounty payment payable under this subsection for a product described in paragraph (2)(B) shall

be in the amount that the Secretary of Energy, in consultation with the Administrator, determines is sufficient to promote the recycling of such products, up to the amount of bounty for a

comparable product described in paragraph (2)(A).

(4) RETIREMENT- The Secretary shall ensure that no product for which a bounty is paid under this subsection is returned to active service, but that it is instead destroyed, and

recycled to the extent feasible.

(5) RECYCLING APPLIANCES CONTAINING REFRIGERANTS- Exclusively for the purpose of implementing the bounty payment program for products containing a refrigerant

under this section, the Administrator shall establish standards for environmentally responsible methods of recycling and disposal of refrigerant-containing appliances that, at a

minimum, meet the requirements set by the Responsible Appliance Disposal (RAD) Program for refrigerant disposal. The Secretary shall ensure that such standards are met before

a bounty payment is made under this subsection for a product containing a refrigerant. Nothing in this section shall be interpreted to alter the requirements of section 608 of the Clean

Air Act or to relieve any person from complying with those requirements.

(e) Premium Awards for Development and Production of Superefficient Best-in-Class Products-

(1) IN GENERAL- (A) The Secretary of Energy shall provide premium awards to manufacturers for the development and production of Superefficient Best-in-Class Products.

The Secretary shall set and periodically revise standards for eligibility of products for designation as a Superefficient Best-in-Class Product.

(B) The Secretary may establish a standard for a Superefficient Best-in-Class Product even if no product meeting that standard exists, if the Secretary has reasonable grounds

to conclude that a mass-producible product could be made to meet that standard.

(C) The Secretary may also establish a Superefficient Best-in-Class Product standard that is met by one or more existing Best-in-Class Product models, if those product

models have distinct energy efficiency attributes and performance characteristics that make them significantly better than other product models qualifying as best-in-class. The

Secretary may not designate as Superefficient Best-in-Class Products under this subparagraph models that represent more than 10 percent of the currently qualifying Best-in-Class

Product models.

(2) PREMIUM AWARDS- (A) The premium award payment provided to a manufacturer under this subsection shall be in addition to any bonus payments made under

subsection (c).

(B) The amount of the premium award paid per unit of Superefficient Best-in-Class Products sold to retailers or distributors shall be the product of--

(i) an amount determined by the Secretary; and

(ii) the difference in energy consumption between the Superefficient Best-in-Class Product and the average product in the product class.

(C) The Secretary shall determine the amount under subparagraph (B)(i) for each product type, in consultation with State and utility efficiency program administrators as well as

the Administrator, based on consideration of the present value to the Nation of the energy (and water or other resources or inputs) saved over the useful life of the product. The

Secretary may also take into consideration the methods used to increase sales of qualifying products in determining such amount.

(D) The Secretary may adjust the value described in subparagraph (C) upward or downward as appropriate, including based on the effect of the premium awards on the sales

of products in different classes that may be affected by the program under this subsection.

(E) Premium award payments shall be applied to sales of any Superefficient Best-in-Class Product for the first 3 years after designation as a Superefficient Best-in-Class

Product.

(3) COORDINATION OF INCENTIVES- No product for which Federal tax credit is received under section 45M of the Internal Revenue Code of 1986 shall be eligible to receive

premium award payments pursuant to this subsection.

(f) Reporting- The Secretary of Energy shall require, as a condition of receiving a bonus, bounty, or premium award under this section, that a report containing the following

documentation be provided:

(1) For retailers and distributors, the number of units sold within each product type, and model-specific wholesale purchase prices and retail sale prices, on a monthly basis.

(2) For manufacturers, model-specific energy consumption data.

(3) For manufacturers, on an immediate basis, information concerning any product design or function changes that affect the energy consumption of the unit.

(4) The methods used to increase the sales of qualifying products.

(g) Monitoring and Verification Protocols- The Secretary of Energy shall establish monitoring and verification protocols for energy consumption tests for each product model and for

sales of energy-efficient models.

(h) Disclosure- The Secretary of Energy may require that retailers and distributors disclose publicly and to consumers their participation in the program under this section.

(i) Cost-Effectiveness Requirement-

(1) REQUIREMENT- The Secretary of Energy shall make cost-effectiveness a top priority in designing the program under, and administering, this section, except that the

cost-effectiveness of providing premium awards to manufacturers under subsection (e), in aggregate, may be lower by this measure than that of the bonuses and bounties to

retailers and distributors under subsections (c) and (d).

(2) DEFINITIONS- In this subsection:

(A) COST-EFFECTIVENESS- The term `cost-effectiveness' means a measure of aggregate savings in the cost of energy over the lifetime of a product in relation to the cost

to the Secretary of the bonuses, bounties, and premium awards provided under this section for a product.

(B) SAVINGS- The term `savings' means the cumulative megawatt-hours of electricity or million British thermal units of other fuels saved by a product during the projected

useful life of the product, in comparison to projected energy consumption of the average product in the same class, taking into consideration the impact of any documented measures

to replace, retire, and recycle low-efficiency products at the time of purchase of highly-efficient substitutes.

(j) Definitions- In this section--

(1) the term `distributor' mean an individual, organization, or company that sells products in multiple lots and not directly to end-users;

(2) the term `retailer' means an individual, organization, or company that sells products directly to end-users; and

(3) the term `Superefficient Best-in-Class Product' means a product that--

(A) can be mass produced; and

(B) achieves the highest level of efficiency that the Secretary of Energy finds can, given the current state of technology, be produced and sold commercially to mass-market

consumers.

(k) Authorization of Appropriations- There are authorized to be appropriated $300,000,000 for each of the fiscal years 2010 through 2014 to the Secretary of Energy for purposes of

this section, of which not more than 10 percent for any fiscal year may be expended on program administration.

SEC. 215. WATERSENSE.

(a) In General- There is established within the Environmental Protection Agency a WaterSense program to identify and promote water efficient products, buildings and landscapes,

and services in order--

(1) to reduce water use;

(2) to reduce the strain on water, wastewater, and stormwater infrastructure;

(3) to conserve energy used to pump, heat, transport, and treat water; and

(4) to preserve water resources for future generations,

through voluntary labeling of, or other forms of communications about, products, buildings and landscapes, and services that meet the highest water efficiency and performance

standards.

(b) Duties- The Administrator shall--

(1) promote WaterSense labeled products, buildings and landscapes, and services in the market place as the preferred technologies and services for--

(A) reducing water use; and

(B) ensuring product and service performance;

(2) work to enhance public awareness of the WaterSense label through public outreach, education, and other means;

(3) establish and maintain performance standards so that products, buildings and landscapes, and services labeled with the WaterSense label perform as well or better than

their less efficient counterparts;

(4) publicize the need for proper installation and maintenance of WaterSense products by a licensed, and where certification guidelines exist, WaterSense-certified

professional to ensure optimal performance;

(5) preserve the integrity of the WaterSense label;

(6) regularly review and, when appropriate, update WaterSense criteria for categories of products, buildings and landscapes, and services, at least once every four years;

(7) to the extent practical, regularly estimate and make available to the public the production and relative market shares of WaterSense labeled products, buildings and

landscapes, and services, at least annually;

(8) to the extent practical, regularly estimate and make available to the public the water and energy savings attributable to the use of WaterSense labeled products, buildings

and landscapes, and services, at least annually;

(9) solicit comments from interested parties and the public prior to establishing or revising a WaterSense category, specification, installation criterion, or other criterion (or prior

to effective dates for any such category, specification, installation criterion, or other criterion);

(10) provide reasonable notice to interested parties and the public of any changes (including effective dates), on the adoption of a new or revised category, specification,

installation criterion, or other criterion, along with--

(A) an explanation of changes; and

(B) as appropriate, responses to comments submitted by interested parties;

(11) provide appropriate lead time (as determined by the Administrator) prior to the applicable effective date for a new or significant revision to a category, specification,

installation criterion, or other criterion, taking into account the timing requirements of the manufacturing, marketing, training, and distribution process for the specific product, building

and landscape, or service category addressed; and

(12) identify and, where appropriate, implement other voluntary approaches in commercial, institutional, residential, municipal, and industrial sectors to encourage reuse and

recycling technologies, improve water efficiency, or lower water use while meeting, where applicable, the performance standards established under paragraph (3).

(c) Authorization of Appropriations- There are authorized to be appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal year 2011, $20,000,000 for fiscal year 2012, and

$50,000,000 for fiscal year 2013 and each year thereafter, adjusted for inflation, to carry out this section.

SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

(a) Definitions- In this section:

(1) AGENCY- The term `agency' has the meaning given that term in section 7902(a) of title 5, United States Code.

(2) WATERSENSE PRODUCT OR SERVICE- The term `WaterSense product or service' means a product or service that is rated for water efficiency under the WaterSense

program.

(3) WATERSENSE PROGRAM- The term `WaterSense program' means the program established by section 215 of this Act.

(4) FEMP DESIGNATED PRODUCT- The term `FEMP designated product' means a product that is designated under the Federal Energy Management Program of the

Department of Energy as being among the highest 25 percent of equivalent products for efficiency.

(5) PRODUCT AND SERVICE- The terms `product' and `service' do not include any water consuming product or service designed or procured for combat or combat-related

missions. The terms also exclude products or services already covered by the Federal procurement regulations established under section 553 of the National Energy Conservation

Policy Act (42 U.S.C. 8259b).

(b) Procurement of Water Efficient Products-

(1) REQUIREMENT- To meet the requirements of an agency for a water consuming product or service, the head of the agency shall, except as provided in paragraph (2),

procure--

(A) a WaterSense product or service; or

(B) a FEMP designated product.

A WaterSense plumbing product should preferably, when possible, be installed by a licensed and, when WaterSense certification guidelines exist, WaterSense-certified

plumber or mechanical contractor, and a WaterSense irrigation system should preferably, when possible, be installed, maintained, and audited by a WaterSense-certified irrigation

professional to ensure optimal performance.

(2) EXCEPTIONS- The head of an agency is not required to procure a WaterSense product or service or FEMP designated product under paragraph (1) if the head of the agency

finds in writing that--

(A) a WaterSense product or service or FEMP designated product is not cost-effective over the life of the product, taking energy and water cost savings into account; or

(B) no WaterSense product or service or FEMP designated product is reasonably available that meets the functional requirements of the agency.

(3) PROCUREMENT PLANNING- The head of an agency shall incorporate into the specifications for all procurements involving water consuming products and systems,

including guide specifications, project specifications, and construction, renovation, and services contracts that include provision of water consuming products and systems, and into

the factors for the evaluation of offers received for the procurement, criteria used for rating WaterSense products and services and FEMP designated products. The head of an agency

shall consider, to the maximum extent practicable, additional measures for reducing agency water consumption, including water reuse technologies, leak detection and repair, and

use of waterless products that perform similar functions to existing water-consuming products.

(c) Regulations- Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, working in coordination with the Administrator, shall issue guidelines to

carry out this section.

SEC. 217. WATER EFFICIENT PRODUCT REBATE PROGRAMS.

(a) Definitions- In this section:

(1) ELIGIBLE STATE- The term `eligible State' means a State that meets the requirements of subsection (b).

(2) RESIDENTIAL WATER EFFICIENT PRODUCT OR SERVICE- The term `residential water efficient product or service' means a product or service for a residence or its

landscape that is rated for water efficiency and performance--

(A) by the WaterSense program, where a WaterSense specification does not exist; or

(B) by a State program and approved by the Administrator.

Categories of water efficient products and services may include faucets, irrigation technologies and services, point-of-use water treatment devices, reuse and recycling

technologies, toilets, and showerheads.

(3) STATE PROGRAM- The term `State program' means a State program for administering rebates or vouchers for consumer purchase of water efficient products and services

as described in subsection (b)(1).

(4) WATERSENSE PROGRAM- The term `WaterSense program' means the program established by section 215 of this Act.

(b) Eligible States- A State shall be eligible to receive an allocation under subsection (c) if the State--

(1) establishes (or has established) a State program to provide rebates or vouchers to residential consumers for the purchase of residential water efficient products or

services to replace used products of the same type;

(2) submits an application for the allocation at such time, in such form, and containing such information as the Administrator may require; and

(3) provides assurances satisfactory to the Administrator that the State will use the allocation to supplement, but not supplant, funds made available to carry out the State

program.

(c) Amount of Allocations-

(1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the Administrator shall allocate to each eligible State to carry out subsection (d) an amount equal to the product

obtained by multiplying the amount made available under subsection (g) for the fiscal year by the ratio that the population of the State in the most recent calendar year for which data

are available bears to the total population of all eligible States in that calendar year.

(2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated under this subsection shall be adjusted proportionately so that no eligible State is allocated a sum

that is less than an amount determined by the Administrator.

(d) Use of Allocated Funds- Funds allocated to a State under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out a State program.

(e) Fixture Recycling- States are encouraged to promote or implement fixture recycling programs to manage the disposal of older fixtures replaced due to the rebate program

under this section.

(f) Issuance of Rebates- Rebates or vouchers may be provided to residential consumers that meet the requirements of the State program. The State may issue all rebates or

vouchers directly to residential consumers or, with approval of the Administrator, delegate some or all rebate and voucher administration to other organizations including, but not

limited to, local governments, municipal water authorities, and water utilities. The amount of a rebate or voucher shall be determined by the State, taking into consideration--

(1) the amount of the allocation to the State under subsection (c);

(2) the amount of any Federal or State tax incentive available for the purchase of the residential water efficient product or service;

(3) the amount necessary to change consumer behavior to purchase water efficient products and services; and

(4) the consumer expenditures for onsite preparation, assembly, and original installation of the product.

(g) Authorization of Appropriations- There are authorized to be appropriated to the Administrator to carry out this section $50,000,000 for each of the fiscal years 2010 and 2011,

$75,000,000 for fiscal year 2012, $100,000,000 for fiscal year 2013, and $150,000,000 for fiscal year 2014 and each year thereafter, adjusted for inflation.

SEC. 218. CERTIFIED STOVES PROGRAM.

(a) Definitions- In this section:

(1) AGENCY- The term `Agency' means the Environmental Protection Agency.

(2) WOOD STOVE OR PELLET STOVE- The term `wood stove or pellet stove' means a wood stove, pellet stove, or fireplace insert that uses wood or pellets for fuel.

(3) CERTIFIED STOVE- The term `certified stove' means a wood stove or pellet stove that meets the standards of performance for new residential wood heaters under subpart

AAA of part 60 of subchapter C of chapter I of title 40, Code of Federal Regulations (or successor regulations), as certified by the Administrator. Pellet stoves and fireplace inserts

using pellets for fuel that are exempt from testing by the Administrator but meet the same standards of performance as wood stoves are considered certified for the purposes of this

section.

(4) ELIGIBLE ENTITY- The term `eligible entity' means--

(A) a State, a local government, or a federally recognized Indian tribe;

(B) Alaskan Native villages or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et seq.)); and

(C) a nonprofit organization or institution that--

(i) represents or provides pollution reduction or educational services relating to wood smoke minimization to persons, organizations, or communities; or

(ii) has, as its principal purpose, the promotion of air quality or energy efficiency.

(b) Establishment- The Administrator shall establish and carry out a program to assist in the replacement of wood stoves or pellet stoves that do not meet the standards of

performance referred to in subsection (a)(4) by--

(1) requiring that each wood stove or pellet stove sold in the United States on and after the date of enactment of this Act meet the standards of performance referred to in

subsection (a)(4);

(2) requiring that no wood stove or pellet stove replaced under this program is sold or returned to active service, but that it is instead destroyed and recycled to the maximum

extent feasible;

(3) providing funds to an eligible entity to replace a wood stove or pellet stove that does not meet the standards of performance in subsection (a)(4) with a certified stove,

including funds to pay for--

(A) installation of a replacement certified stove; and

(B) necessary replacement of or repairs to ventilation, flues, chimneys, or other relevant items necessary for safe installation of a replacement certified stove;

(4) in addition to any funds that may be appropriated for the program under this subsection, using existing Federal, State, and local programs and incentives, to the greatest

extent practicable;

(5) prioritizing the replacement of wood stoves or pellet stoves manufactured before July 1, 1990; and

(6) carrying out such other activities as the Administrator determines appropriate to facilitate the replacement of wood stoves or pellet stoves that do not meet the standards of

performance referred to in subsection (a)(3).

(c) Regulations- The Administrator may promulgate such regulations as are necessary to carry out the program established under subsection (b).

(d) Funding-

(1) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out the program under this section $20,000,000 for the period of fiscal years 2010

through 2014.

(2) DESIGNATED USE- Of amounts appropriated pursuant to this subsection--

(A) 25 percent shall be designated for use to carry out the program under this section on lands held in trust for the benefit of a federally recognized Indian tribe;

(B) 3 percent shall be designated for use to carry out the program under this section in Alaskan Native villages or regional or village corporations (as defined in, or

established under, the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et seq.)); and

(C) 72 percent shall be designated for use to carry out the program under this section nationwide.

(3) REGULATORY PROGRAMS-

(A) IN GENERAL- No grant or loan provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal, State, or local law.

(B) MANDATED- For purposes of subparagraph (A), voluntary or elective emission reduction measures shall not be considered `mandated', regardless of whether the

reductions are included in the implementation plan of a State.

(e) EPA Authority to Accept Wood Stove or Pellet Stove Replacement Supplemental Environmental Projects-

(1) IN GENERAL- The Administrator may accept (notwithstanding sections 3302 and 1301 of title 31, United States Code) wood stove or pellet stove replacement

Supplemental Environmental Projects if such projects, as part of a settlement of any alleged violation of environmental law--

(A) protect human health or the environment;

(B) are related to the underlying alleged violation;

(C) do not constitute activities that the defendant would otherwise be legally required to perform; and

(D) do not provide funds for the staff of the Agency or for contractors to carry out the Agency's internal operations.

(2) CERTIFICATION- In any settlement agreement regarding an alleged violation of environmental law in which a defendant agrees to perform a wood stove or pellet stove

replacement Supplemental Environmental Project, the Administrator shall require the defendant to include in the settlement documents a certification under penalty of law that the

defendant would have agreed to perform a comparably valued, alternative project other than a wood stove or pellet stove replacement Supplemental Environmental Project if the

Administrator were precluded by law from accepting a wood stove or pellet stove replacement Supplemental Environmental Project. A failure by the Administrator to include this

language in such a settlement agreement shall not create a cause of action against the United States under the Clean Air Act or any other law or create a basis for overturning a

settlement agreement entered into by the United States.

SEC. 219. ENERGY STAR STANDARDS.

(a) Energy Star- Section 324A(c) of the Energy Policy and Conservation Act is amended--

(1) in paragraph (6)(B), by striking `and' after the semicolon at the end;

(2) in paragraph (7), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

`(8) in establishing and revising an Energy Star product category, specification, or criterion, require inclusion of developmental products planned for sale within 2 years in the

testing or evaluation of products proposed for purposes of such establishment or revision;

`(9) not later than 18 months after the date of enactment of this paragraph, establish and implement a rating system for products identified as Energy Star products pursuant to

this section to provide consumers with the most helpful information on the relative energy efficiency of those products, unless the Administrator and the Secretary communicate to

Congress that establishing such a system would diminish the value of the Energy Star brand to consumers;

`(10)(A) review the Energy Star product criteria for the 10 products in each product category with the greatest energy consumption at least once every 3 years; and

`(B) based on the review, update and publish the Energy Star product criteria for each such category, as necessary; and

`(11) require periodic verification of compliance with the Energy Star product criteria by products identified as Energy Star products pursuant to this section, including--

`(A) purchase and testing of products from the market; or

`(B) other appropriate testing and compliance approaches.'.

(b) Authorization of Appropriations- There are authorized to be appropriated to carry out the amendments made by this section $5,000,000 for fiscal year 2010 and for each fiscal

year thereafter.

Subtitle C--Transportation Efficiency

SEC. 221. EMISSIONS STANDARDS.

Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by inserting after part A the following new part:

`PART B--MOBILE SOURCES

`SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE SOURCES.

`(a) New Motor Vehicles and New Motor Vehicle Engines- (1) Pursuant to section 202(a)(1), by December 31, 2010, the Administrator shall promulgate standards applicable to

emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as

established by the Administrator as of the date of the enactment of this section). The Administrator may revise these standards from time to time.

`(2) Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines,

excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall contain standards that reflect

the greatest degree of emissions reduction achievable through the application of technology which the Administrator determines will be available for the model year to which such

standards apply, giving appropriate consideration to cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect after

such period as the Administrator finds necessary to permit the development and application of the requisite technology, and, at a minimum, shall apply for a period no less than 3

model years beginning no earlier than the model year commencing 4 years after such regulations are promulgated.

`(3) Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines,

excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall supersede and satisfy any

and all of the rulemaking and compliance requirements of section 32902(k) of title 49, United States Code.

`(4) Other than as specifically set forth in paragraph (3) of this subsection, nothing in this section shall affect or otherwise increase or diminish the authority of the Secretary of

Transportation to adopt regulations to improve the overall fuel efficiency of the commercial goods movement system.

`(b) Nonroad Vehicles and Engines- (1) Pursuant to section 213(a)(4) and (5), the Administrator shall identify those classes or categories of new nonroad vehicles or engines, or

combinations of such classes or categories, that, in the judgment of the Administrator, both contribute significantly to the total emissions of greenhouse gases from nonroad engines

and vehicles, and provide the greatest potential for significant and cost-effective reductions in emissions of greenhouse gases. The Administrator shall promulgate standards

applicable to emissions of greenhouse gases from these new nonroad engines or vehicles by December 31, 2012. The Administrator shall also promulgate standards applicable to

emissions of greenhouse gases for such other classes and categories of new nonroad vehicles and engines as the Administrator determines appropriate and in the timeframe the

Administrator determines appropriate. The Administrator shall base such determination, among other factors, on the relative contribution of greenhouse gas emissions, and the

costs for achieving reductions, from such classes or categories of new nonroad engines and vehicles. The Administrator may revise these standards from time to time.

`(2) Standards under section 213(a)(4) and (5) applicable to emissions of greenhouse gases from those classes or categories of new nonroad engines or vehicles identified in

the first sentence of paragraph (1) of this subsection, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the

Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such

technology. Any such regulations shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology.

`(3) For purposes of this section and standards under section 213(a)(4) or (5) applicable to emissions of greenhouse gases, the term `nonroad engines and vehicles' shall

include non-internal combustion engines and the vehicles these engines power (such as electric engines and electric vehicles), for those non-internal combustion engines and

vehicles which would be in the same category and have the same uses as nonroad engines and vehicles that are powered by internal combustion engines.

`(c) Aircraft and Aircraft Engines-

`(1) Pursuant to section 231(a), the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new aircraft and new engines used in aircraft

by December 31, 2012. Notwithstanding any requirement in section 231(a), the Administrator, in consultation with the Administrator of the Federal Aviation Administration, shall also

promulgate standards applicable to emissions of greenhouse gases from other classes and categories of aircraft and aircraft engines for such classes and categories as the

Administrator determines appropriate and in the timeframe the Administrator determines appropriate. The Administrator may revise these standards from time to time.

`(2) Standards under section 231(a) applicable to emissions of greenhouse gases from new aircraft and new engines used in aircraft, and any later revisions or additional

standards, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the

time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such standards shall take effect after

such period as the Administrator finds necessary to permit the development and application of the requisite technology.

`(d) Averaging, Banking, and Trading of Emissions Credits- In establishing standards applicable to emissions of greenhouse gases pursuant to this section and sections 202(a),

213(a)(4) and (5), and 231(a), the Administrator may establish provisions for averaging, banking, and trading of greenhouse gas emissions credits within or across classes or

categories of motor vehicles and motor vehicle engines, nonroad vehicles and engines (including marine vessels), and aircraft and aircraft engines, to the extent the Administrator

determines appropriate and considering the factors appropriate in setting standards under those sections. Such provisions may include reasonable and appropriate provisions

concerning generation, banking, trading, duration, and use of credits.

`(e) Reports- The Administrator shall, from time to time, submit a report to Congress that projects the amount of greenhouse gas emissions from the transportation sector,

including transportation fuels, for the years 2030 and 2050, based on the standards adopted under this section.

`(f) Greenhouse Gases- Notwithstanding the provisions of section 711, hydrofluorocarbons shall be considered a greenhouse gas for purposes of this section.'.

SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION EFFICIENCY.

Title VIII of the Clean Air Act, as added by section 331 of this Act, is further amended by inserting after part C the following new part:

`PART D--PLANNING REQUIREMENTS

`SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION EFFICIENCY.

`(a) In General- Each State shall--

`(1) not later than 3 years after the date of enactment of this section, submit to the Administrator goals for transportation-related greenhouse gas emissions reductions, which

goals shall be reasonably commensurate with the targets for overall greenhouse gas emissions reduction established by this Act; and

`(2) as part of each transportation plan or transportation improvement program developed under title 23 or title 49, United States Code, ensure that a plan to achieve such

goals, or an updated version of such a plan, is submitted to the Administrator and to the Secretary of Transportation (in this section referred to as the `Secretary') by each metropolitan

planning organization in the State for an area with a population exceeding 200,000.

`(b) Models and Methodologies-

`(1) IN GENERAL- The Administrator shall promulgate regulations to establish standards for use in developing goals, plans, and strategies under this section and for

monitoring progress toward such goals. Such standards shall include--

`(A) data collection techniques for assessing State and regional transportation-related greenhouse gas emissions;

`(B) methodologies for determining transportation-related greenhouse gas emissions baselines;

`(C) models and methodologies for scenario analysis; and

`(D) models and methodologies for estimating transportation-related greenhouse gas emissions reductions from the strategies considered under this section.

Such regulations may approve or improve existing models and methodologies

`(2) TIMING- The Administrator shall--

`(A) publish proposed regulations under paragraph (1) not later than 1 year after the date of enactment of this section; and

`(B) promulgate final regulations under paragraph (1) not later than 2 years after such date of enactment.

`(3) ASSESSMENT- At least every 6 years after promulgating final regulations under paragraph (1), the Administrator, in coordination with the Secretary, shall assess current

and projected progress in reducing transportation-related greenhouse gas emissions. The assessment shall examine the contributions to emissions reductions attributable to

improvements in vehicle efficiency, greenhouse gas performance of transportation fuels, and increased efficiency in utilizing transportation systems.

`(c) Greenhouse Gas Reduction Goals-

`(1) CONSULTATION- Each State shall develop the goals referred to in subsection (a)(1)--

`(A) in concurrence with State agencies responsible for air quality and transportation;

`(B) in consultation with each metropolitan planning organization for an area in the State with a population exceeding 200,000 and applicable local air quality and

transportation agencies; and

`(C) with public involvement, including public comment periods and meetings.

`(2) PERIOD- The goals referred to in subsection (a)(1) shall be for 4-, 10-, and 20-year periods.

`(3) TARGETS; DESIGNATED YEAR- The goals referred to in subsection (a)(1) shall establish targets to reduce transportation-related greenhouse gas emissions in the

covered area. The targets shall be designed to ensure that the levels of such emissions stabilize and decrease after a designated year. The State shall consider designating 2010 as

such designated year.

`(4) COVERED AREA- The goals referred to in subsection (a)(1)--

`(A) shall be established on a statewide basis;

`(B) shall be established for each metropolitan planning organization in the State for an area with a population exceeding 200,000; and

`(C) may be established on a voluntary basis, in accordance with the provisions of this section, for any metropolitan planning organization not described in subparagraph

(B).

`(5) REVISED GOALS- Every 4 years, each State shall update and revise, as appropriate, the goals referred to in subsection (a)(1).

`(d) Planning- A plan submitted under subsection (a)(2) shall--

`(1) be based upon the models and methodologies established by the Administrator under subsection (b);

`(2) use transportation and land use scenario analysis to address transportation-related greenhouse gas emissions and economic development impacts; and

`(3) be developed--

`(A) with public involvement, including public comment periods and meetings that provide opportunities for comment from a variety of stakeholders based on age, race,

income, and disability;

`(B) with regional coordination, including with respect to--

`(i) metropolitan planning organizations;

`(ii) the localities comprising the metropolitan planning organization;

`(iii) the State in which the metropolitan planning organization is located; and

`(iv) air quality, environmental health, and transportation agencies for the State and region involved; and

`(C) in consultation with the State and local housing, public health, economic development, land use, environment, and public transportation agencies.

`(e) Strategies- In developing goals under subsection (a)(1) and a plan under subsection (a)(2), the State or metropolitan planning organization, as applicable, shall consider

transportation and land use planning strategies to reduce transportation-related greenhouse gas emissions, including the following:

`(1) Efforts to increase or improve public transportation, including--

`(A) new public transportation systems, including new commuter rail systems;

`(B) expansion of existing public transportation systems;

`(C) employer-based subsidies;

`(D) cleaner locomotive technologies;

`(E) quality of service improvements, including improved frequency of service; and

`(F) use of transit buses that are powered by alternative fuels.

`(2) Updates to zoning and other land use regulations and plans to support development that--

`(A) coordinates transportation and land use planning;

`(B) focuses future growth close to existing and planned job centers and public facilities;

`(C) uses existing infrastructure;

`(D) promotes walking, bicycling, and public transportation use; and

`(E) mixes land uses such as housing, retail, and schools.

`(3) Implementation of a policy (referred to as a `complete streets policy') that--

`(A) ensures adequate accommodation of all users of transportation systems, including pedestrians, bicyclists, public transportation users, motorists, children, the elderly,

and individuals with disabilities; and

`(B) adequately addresses the safety and convenience of all users of the transportation system.

`(4) Construction of bicycle and pedestrian infrastructure facilities, including facilities that improve the connections with networks that provide access to human services,

employment, schools, and retail.

`(5) Projects to promote telecommuting, flexible work schedules, or satellite work centers.

`(6) Pricing measures, including tolling, congestion pricing, and pay-as-you-drive insurance.

`(7) Intermodal freight system strategies, including enhanced rail services, short sea shipping, and other strategies.

`(8) Parking policies.

`(9) Intercity rail service, including high speed rail.

`(10) Travel demand management projects.

`(11) Restriction of the use of certain roads, or lanes, by vehicles other than passenger buses and high-occupancy vehicles.

`(12) Reduction of vehicle idling, including idling associated with freight management, construction, transportation, and commuter operations.

`(13) Policies to encourage the use of retrofit technologies and early replacement of vehicles, engines and equipment to reduce transportation-related greenhouse gas

emissions from existing mobile sources.

`(14) Other projects that the Administrator finds reduce transportation-related greenhouse gas emissions.

`(f) Public Availability- The Administrator shall publish, including by posting on the Environmental Protection Agency's website--

`(1) the goals and plans submitted under subsection (a); and

`(2) for each plan submitted under subsection (a)(2), an analysis of the anticipated effects of the plan on greenhouse gas emissions and oil consumption.

`(g) Certification- The Administrator, in consultation with the Secretary, shall certify a State or metropolitan planning organization greenhouse gas reduction plan submitted under

subsection (a)(2) if the plan's implementation is likely to meet the corresponding greenhouse gas reduction goal referred to in subsection (a)(1). If the Administrator, in consultation

with the Secretary, determines that a submitted plan cannot be certified, the State or metropolitan planning organization shall revise and resubmit the plan within 1 year.

`(h) Enforcement- If the Administrator finds that a State has failed to submit goals under subsection (a)(1), has failed to ensure the submission of a plan under subsection (a)(2),

or has failed to submit a revised plan under subsection (g), for any area in the State (irrespective of whether the area is a nonattainment area), the Administrator shall impose a

prohibition in accordance with section 179(b)(1) applicable to the area within 2 years of such a finding. The Administrator may not impose a prohibition under the preceding sentence,

and no action may be brought by the Administrator or any other entity alleging a violation of this section, based on the content or adequacy of a goal or plan submitted under

subsection (a)(1) or (a)(2) or failure to achieve the goal submitted under subsection (a)(1).

`(i) Competitive Grants-

`(1) GRANTS- The Administrator, in consultation with the Secretary, may award grants to States or metropolitan planning organizations--

`(A) to support activities related to improving data collection, modeling, and monitoring systems to assess transportation-related greenhouse gas emissions and the effects

of plans, policies, and strategies referenced in this section;

`(B) for the development of goals and plans to be submitted under sections (a)(1) or (a)(2); and

`(C) to implement plans certified under subsection (g) or elements thereof, provided that each project thus funded includes a measurement and evaluation component that

meets the regulations promulgated under subsection (b).

`(2) PRIORITY- In making grants under paragraph (1)(C), the Administrator shall give priority to applicants based upon--

`(A) the amount of total greenhouse gas emissions to be reduced as a result of implementation of a certified plan, within the covered area, as determined by methods

established under subsection (b);

`(B) the amount of per capita greenhouse gas emissions to be reduced as a result of implementation of a certified plan, within the covered area, as determined by methods

established under subsection (b);

`(C) the cost effectiveness, in terms of dollars per tons of greenhouse gas reductions, to be achieved as a result of the implementation of a certified plan;

`(D) the potential for both short- and long-term reductions; and

`(E) such other factors as the Administrator determines appropriate.

`(3) AUTHORIZATION OF APPROPRIATIONS- To carry out this subsection, there are authorized to be appropriated such sums as may be necessary.

`(j) Definitions- In this section:

`(1) The term `metropolitan planning organization' means a metropolitan planning organization, as such term is used in section 176.

`(2) The term `scenario analysis' means an analysis that is conducted by identifying different trends and making projections based on those trends to develop a range of

scenarios and estimates of how each scenario could improve access to goods and services, including access to employment, education, and health care (especially for elderly and

economically disadvantaged communities), and could affect rates of--

`(A) vehicle miles traveled;

`(B) vehicle hours traveled;

`(C) use of mobile source fuel by type, including electricity; and

`(D) transportation-related greenhouse gas emissions.

`(k) Land Use Authority- Nothing in this section may be construed to--

`(1) infringe upon the existing authority of State or local governments to plan or control land use; or

`(2) provide or transfer authority over land use to any other entity.'.

SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

Part B of title VIII of the Clean Air Act, as added by section 221 of this Act is amended by adding after section 821 the following section:

`SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

`(a) In General- There is established within the Environmental Protection Agency a SmartWay Transport Program to quantify, demonstrate, and promote the benefits of

technologies, products, fuels, and operational strategies that reduce petroleum consumption, air pollution, and greenhouse gas emissions from the mobile source sector.

`(b) General Duties- Under the program established under this section, the Administrator shall carry out each of the following:

`(1) Development of measurement protocols to evaluate the energy consumption and greenhouse gas impacts from technologies and strategies in the mobile source sector,

including those for passenger transport and goods movement.

`(2) Development of qualifying thresholds for certifying, verifying, or designating energy-efficient, low-greenhouse gas SmartWay technologies and strategies for each mode of

passenger transportation and goods movement.

`(3) Development of partnership and recognition programs to promote best practices and drive demand for energy-efficient, low-greenhouse gas transportation performance.

`(4) Promotion of the availability of, and encouragement of the adoption of, SmartWay certified or verified technologies and strategies, and publication of the availability of

financial incentives, such as assistance from loan programs and other Federal and State incentives.

`(c) Smartway Transport Freight Partnership- The Administrator shall establish a SmartWay Transport Partnership program with shippers and carriers of goods to promote

energy-efficient, low-greenhouse gas transportation. In carrying out such partnership, the Administrator shall undertake each of the following:

`(1) Certification of the energy and greenhouse gas performance of participating freight carriers, including those operating rail, trucking, marine, and other goods movement

operations.

`(2) Publication of a comprehensive energy and greenhouse gas performance index of freight modes (including rail, trucking, marine, and other modes of transporting goods)

and individual freight companies so that shippers can choose to deliver their goods more efficiently.

`(3) Development of tools for--

`(A) carriers to calculate their energy and greenhouse gas performance; and

`(B) shippers to calculate the energy and greenhouse gas impacts of moving their products and to evaluate the relative impacts from transporting their goods by different

modes and corporate carriers.

`(4) Provision of recognition opportunities for participating shipper and carrier companies demonstrating advanced practices and achieving superior levels of greenhouse gas

performance.

`(d) Improving Freight Greenhouse Gas Performance Databases- The Administrator shall, in coordination with other appropriate agencies, define and collect data on the physical

and operational characteristics of the Nation's truck population, with special emphasis on data related to energy efficiency and greenhouse gas performance to inform the

performance index published under subsection (c)(2) of this section, and other means of goods transport as necessary, at least every 5 years.

`(e) Establishment of Financing Program- The Administrator shall establish a SmartWay Financing Program to competitively award funding to eligible entities identified by the

Administrator in accordance with the program requirements in subsection (g).

`(f) Purpose- Under the SmartWay Financing Program, eligible entities shall--

`(1) use funds awarded by the Administrator to provide flexible loan and lease terms that increase approval rates or lower the costs of loans and leases in accordance with

guidance developed by the Administrator; and

`(2) make such loans and leases available to public and private entities for the purpose of adopting low-greenhouse gas technologies or strategies for the mobile source

sector that are designated by the Administrator.

`(g) Program Requirements- The Administrator shall determine program design elements and requirements, including--

`(1) the type of financial mechanism with which to award funding, in the form of grants or contracts;

`(2) the designation of eligible entities to receive funding, including State, tribal, and local governments, regional organizations comprised of governmental units, nonprofit

organizations, or for-profit companies;

`(3) criteria for evaluating applications from eligible entities, including anticipated--

`(A) cost-effectiveness of loan or lease program on a metric-ton-of-greenhouse gas-saved-per-dollar basis;

`(B) ability to promote the loan or lease program and associated technologies and strategies to the target audience; and

`(4) reporting requirements for entities that receive awards, including--

`(A) actual cost-effectiveness and greenhouse gas savings from the loan or lease program based on a methodology designated by the Administrator;

`(B) the total number of applications and number of approved applications; and

`(C) terms granted to loan and lease recipients compared to prevailing market practices.

`(h) Authorization of Appropriations- Such sums as necessary are authorized to be appropriated to the Administrator to carry out this section.'.

SEC. 224. STATE VEHICLE FLEETS.

Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C. 13257) is amended by adding the following new paragraph at the end thereof:

`(3) The Secretary shall revise the rules under this subsection with respect to the types of alternative fueled vehicles required for compliance with this subsection to ensure those

rules are consistent with any guidance issued pursuant to section 303 of this Act.'.

Subtitle D--Industrial Energy Efficiency Programs

SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.

The Secretary of Energy shall continue to support the development of the American National Standards Institute (ANSI) voluntary industrial plant energy efficiency certification

program, pending International Standards Organization (ISO) consensus standard 50001, and other related ANSI/ISO standards. In addition, the Department shall undertake

complementary activities through the Department of Energy's Industry Technologies Program that support the voluntary implementation of such standards by manufacturing firms.

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out these activities. The Secretary shall report to Congress on the status of standards

development and plans for further standards development pursuant to this section by not later than 18 months after the date of enactment of this Act, and shall prepare a second such

report 18 months thereafter.

SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD PROGRAM.

(a) Electric and Thermal Waste Energy Recovery Awards- The Secretary of Energy shall establish a program to make monetary awards to the owners and operators of new and

existing electric energy generation facilities or thermal energy production facilities using fossil or nuclear fuel, to encourage them to use innovative means of recovering any thermal

energy that is a potentially useful byproduct of electric power generation or other processes to--

(1) generate additional electric energy; or

(2) make sales of thermal energy not used for electric generation, in the form of steam, hot water, chilled water, or desiccant regeneration, or for other commercially valid

purposes.

(b) Amount of Awards-

(1) ELIGIBILITY- Awards shall be made under subsection (a) only for the use of innovative means that achieve net energy efficiency at the facility concerned significantly greater

than the current standard technology in use at similar facilities.

(2) AMOUNT- The amount of an award made under subsection (a) shall equal an amount up to the value of 25 percent of the energy projected to be recovered or generated

during the first 5 years of operation of the facility using the innovative energy recovery method, or such lesser amount that the Secretary determines to be the minimum amount that

can cost-effectively stimulate such innovation.

(3) LIMITATION- No person may receive an award under this section if a grant under the waste energy incentive grant program under section 373 of the Energy Policy and

Conservation Act (42 U.S.C. 6343) is made for the same energy savings resulting from the same innovative method.

(c) Regulatory Status- The Secretary of Energy shall--

(1) assist State regulatory commissions to identify and make changes in State regulatory programs for electric utilities to provide appropriate regulatory status for thermal

energy byproduct businesses of regulated electric utilities to encourage those utilities to enter businesses making the sales referred to in subsection (a)(2); and

(2) encourage self-regulated utilities to enter businesses making the sales referred to in subsection (a)(2).

(d) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Energy such sums as are necessary for the purposes of this section.

SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY FINANCIAL INCENTIVES.

Section 373(e) of the Energy Policy and Conservation Act (42 U.S.C. 6343(e)) is amended--

(1) by striking `that qualifies for' and inserting `who elects to claim'; and

(2) by inserting `from that project' after `for waste heat recovery'.

SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS PROGRAM.

(a) Findings- Congress finds that--

(1) electric motor systems account for about half of the electricity used in the United States;

(2) electric motor energy use is determined by both the efficiency of the motor and the system in which the motor operates;

(3) Federal Government research on motor end use and efficiency opportunities is more than a decade old; and

(4) the Census Bureau has discontinued collection of data on motor and generator importation, manufacture, shipment, and sales.

(b) Definitions- In this section:

(1) DEPARTMENT- The term `Department' means the Department of Energy.

(2) INTERESTED PARTIES- The term `interested parties' includes--

(A) trade associations;

(B) motor manufacturers;

(C) motor end users;

(D) electric utilities; and

(E) individuals and entities that conduct energy efficiency programs.

(3) SECRETARY- The term `Secretary' means the Secretary of Energy, in consultation with interested parties.

(c) Assessment- The Secretary shall conduct an assessment of electric motors and the electric motor market in the United States that shall--

(1) include important subsectors of the industrial and commercial electric motor market (as determined by the Secretary), including--

(A) the stock of motors and motor-driven equipment;

(B) efficiency categories of the motor population; and

(C) motor systems that use drives, servos, and other control technologies;

(2) characterize and estimate the opportunities for improvement in the energy efficiency of motor systems by market segment, including opportunities for--

(A) expanded use of drives, servos, and other control technologies;

(B) expanded use of process control, pumps, compressors, fans or blowers, and material handling components; and

(C) substitution of existing motor designs with existing and future advanced motor designs, including electronically commutated permanent magnet, interior permanent

magnet, and switched reluctance motors; and

(3) develop an updated profile of motor system purchase and maintenance practices, including surveying the number of companies that have motor purchase and repair

specifications, by company size, number of employees, and sales.

(d) Recommendations; Update- Based on the assessment conducted under subsection (c), the Secretary shall--

(1) develop--

(A) recommendations to update the detailed motor profile on a periodic basis;

(B) methods to estimate the energy savings and market penetration that is attributable to the Save Energy Now Program of the Department; and

(C) recommendations for the Director of the Census Bureau on market surveys that should be undertaken in support of the motor system activities of the Department; and

(2) prepare an update to the Motor Master+ program of the Department.

(e) Program- Based on the assessment, recommendations, and update required under subsections (c) and (d), the Secretary shall establish a proactive, national program

targeted at motor end-users and delivered in cooperation with interested parties to increase awareness of--

(1) the energy and cost-saving opportunities in commercial and industrial facilities using higher efficiency electric motors;

(2) improvements in motor system procurement and management procedures in the selection of higher efficiency electric motors and motor-system components, including

drives, controls, and driven equipment; and

(3) criteria for making decisions for new, replacement, or repair motor and motor system components.

SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.

(a) In General- Part C of title III of the Energy Policy and Conservation Act (42 U.S.C. 6311 et seq.) is amended by adding at the end the following:

`SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.

`(a) Establishment- Not later than January 1, 2010, in accordance with subsection (b), the Secretary shall establish a program to provide rebates for expenditures made by

entities--

`(1) for the purchase and installation of a new electric motor that has a nominal full load efficiency that is not less than the nominal full load efficiency as defined in--

`(A) table 12-12 of NEMA Standards Publication MG 1-2006 for random wound motors rated 600 volts or lower; or

`(B) table 12-13 of NEMA Standards Publication MG 1-2006 for form wound motors rated 5000 volts or lower; and

`(2) to replace an installed motor of the entity the specifications of which are established by the Secretary by a date that is not later than 90 days after the date of enactment of

this section.

`(b) Requirements-

`(1) APPLICATION- To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such

information as the Secretary may require, including--

`(A) demonstrated evidence that the entity purchased an electric motor described in subsection (a)(1) to replace an installed motor described in subsection (a)(2);

`(B) demonstrated evidence that the entity--

`(i) removed the installed motor of the entity from service; and

`(ii) properly disposed the installed motor of the entity; and

`(C) the physical nameplate of the installed motor of the entity.

`(2) AUTHORIZED AMOUNT OF REBATE- The Secretary may provide to an entity that meets each requirement under paragraph (1) a rebate the amount of which shall be equal

to the product obtained by multiplying--

`(A) the nameplate horsepower of the electric motor purchased by the entity in accordance with subsection (a)(1); and

`(B) $25.00.

`(3) PAYMENTS TO DISTRIBUTORS OF QUALIFYING ELECTRIC MOTORS- To assist in the payment for expenses relating to processing and motor core disposal costs, the

Secretary shall provide to the distributor of an electric motor described in subsection (a)(1), the purchaser of which received a rebate under this section, an amount equal to the

product obtained by multiplying--

`(A) the nameplate horsepower of the electric motor; and

`(B) $5.00.

`(c) Authorization of Appropriations- There are authorized to be appropriated to carry out this section, to remain available until expended--

`(1) $80,000,000 for fiscal year 2011;

`(2) $75,000,000 for fiscal year 2012;

`(3) $70,000,000 for fiscal year 2013;

`(4) $65,000,000 for fiscal year 2014; and

`(5) $60,000,000 for fiscal year 2015.'.

(b) Table of Contents- The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part C of title

III the following:

`Sec. 347. Motor efficiency rebate program.'.

Subtitle E--Improvements in Energy Savings Performance Contracting

SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.

(a) Competition Requirements for Task or Delivery Orders Under Energy Savings Performance Contracts-

(1) COMPETITION REQUIREMENTS- Subsection (a) of section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the end the

following paragraph:

`(3)(A) The head of a Federal agency may issue a task or delivery order under an energy savings performance contract by--

`(i) notifying all contractors that have received an award under such contract that the agency proposes to discuss energy savings performance services for some or all of its

facilities, soliciting an expression of interest in performing site surveys or investigations and feasibility designs and studies and the submission of qualifications from such

contractors, and including in such notice summary information concerning energy use for any facilities that the agency has specific interest in including in such contract;

`(ii) reviewing all expressions of interest and qualifications submitted pursuant to the notice under clause (i);

`(iii) selecting two or more contractors (from among those reviewed under clause (ii)) to conduct discussions concerning the contractors' respective qualifications to implement

potential energy conservation measures, including requesting references demonstrating experience on similar efforts and the resulting energy savings of such similar efforts;

`(iv) selecting and authorizing--

`(I) more than one contractor (from among those selected under clause (iii)) to conduct site surveys, investigations, feasibility designs and studies or similar assessments

for the energy savings performance contract services (or for discrete portions of such services), for the purpose of allowing each such contractor to submit a firm, fixed-price proposal

to implement specific energy conservation measures; or

`(II) one contractor (from among those selected under clause (iii)) to conduct a site survey, investigation, a feasibility design and study or similar for the purpose of allowing

the contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures;

`(v) negotiating a task or delivery order for energy savings performance contracting services with the contractor or contractors selected under clause (iv) based on the energy

conservation measures identified; and

`(vi) issuing a task or delivery order for energy savings performance contracting services to such contractor or contractors.

`(B) The issuance of a task or delivery order for energy savings performance contracting services pursuant to subparagraph (A) is deemed to satisfy the task and delivery order

competition requirements in section 2304c(d) of title 10, United States Code, and section 303J(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(d)).

`(C) The Secretary may issue guidance as necessary to agencies issuing task or delivery orders pursuant to subparagraph (A).'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) is inapplicable to task or delivery orders issued before the date of enactment of this section.

(b) Inclusion of Thermal Renewable Energy- Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended--

(1) in subsection (a), by striking `electric'; and

(2) in subsection (b)(2), by inserting `or thermal' after `means electric'.

(c) Credit for Renewable Energy Produced and Used on Site- Subsection (c) of section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended to read as follows:

`(c) Calculation- Renewable energy produced at a Federal facility, on Federal lands, or on Indian lands (as defined in title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et

seq.)) shall be calculated separately from renewable energy consumed at a Federal facility, and each may be used to comply with the consumption requirement under subsection

(a).'.

(d) Financing Flexibility- Section 801(a)(2)(E) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(E)) is amended by striking `In' and inserting `Notwithstanding

any other provision of law, in'.

Subtitle F--Public Institutions

SEC. 261. PUBLIC INSTITUTIONS.

Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h-1) is amended--

(1) in subsection (a)(5), by striking `or a designee' and inserting `a not-for-profit hospital or not-for-profit inpatient health care facility, or a designated agent';

(2) in subsection (c)(1), by striking subparagraph (C);

(3) in subsection (f)(3)(A), by striking `$1,000,000' and inserting `$2,500,000'; and

(4) in subsection (i)(1), by striking `$250,000,000 for each of fiscal years 2009 through 2013' and inserting `$250,000,000 for each of fiscal years 2010 through 2015'.

SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.

Section 545(b)(3) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17155(b)(3)) is amended--

(1) by striking `Indian tribe may use' and all that follows through `for administrative expenses' and inserting `Indian tribe may use for administrative expenses';

(2) by striking subparagraphs (B) and (C);

(3) by redesignating the remaining clauses (i) and (ii) as subparagraphs (A) and (B), respectively and adjusting the margin of those subparagraphs accordingly; and

(4) by striking the semicolon at the end and inserting a period.

SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.

(a) Section 541(3)(A) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking `and' at the end of subclause (II), in clause (ii) by striking the period

at the end of subclause (II) and inserting `; or', and by inserting the following new clause (iii):

`(iii) a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent

a combined population of not less than 35,000.'.

(b) Section 541(3)(B) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking `or', in clause (ii) by striking the period at the end and inserting `; or',

and by inserting the following new clause (iii):

`(iii) a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent

a combined population of not less than 50,000.'.

SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.

(a) In General- The Secretary of Energy is authorized to make grants to private, nonprofit, mission-driven community development organizations including community development

corporations and community development financial institutions to provide financing to businesses and projects that improve energy efficiency; identify and develop alternative,

renewable, and distributed energy supplies; provide technical assistance and promote job and business opportunities for low-income residents; and increase energy conservation in

low income rural and urban communities.

(b) Grants- The purpose of such grants is to increase the flow of capital and benefits to low income communities, minority-owned and woman-owned businesses and

entrepreneurs and other projects and activities located in low income communities in order to reduce environmental degradation, foster energy conservation and efficiency and create

job and business opportunities for local residents. The Secretary may make grants on a competitive basis for--

(1) investments that develop alternative, renewable, and distributed energy supplies;

(2) capitalizing loan funds that lend to energy efficiency projects and energy conservation programs;

(3) technical assistance to plan, develop, and manage an energy efficiency financing program; and

(4) technical and financial assistance to assist small-scale businesses and private entities develop new renewable and distributed sources of power or combined heat and

power generation.

(c) Authorization of Appropriations- For the purposes of this section there is authorized to be appropriated $50,000,000 for each of the fiscal years 2010 through 2015.

Subtitle G--Miscellaneous

SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended to read as follows:

`SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.

`(a) In General- Not later than 1 year after the date of enactment of the American Clean Energy and Security Act of 2009, each Federal agency shall collaborate with the Director of

the Office of Management and Budget (referred to in this section as the `Director') to create an implementation strategy, including best practices and measurement and verification

techniques, for the purchase and use of energy efficient information and communications technologies and practices. Wherever possible, existing standards, specifications,

performance metrics, and best management practices that have been or are being developed in open collaboration and with broad stakeholder input and review should be

incorporated. In addition, agency strategies shall be flexible, cost-effective, and based on the specific operating requirements and statutory mission of each agency.

`(b) Energy Efficient Information and Communications Technologies- In developing an implementation strategy, each agency shall--

`(1) consider information and communications technologies and infrastructure, including, but not limited to, advanced metering infrastructure, information and communications

technology services and products, efficient data center strategies, applications modernization and rationalization, building systems energy efficiency, and telework; and

`(2) ensure that agencies are eligible to realize the savings and rewards brought about through increased efficiencies.

`(c) Performance Goals- Not later than 6 months after the date of enactment of the American Clean Energy and Security Act of 2009, the Director shall establish performance goals

for evaluating the efforts of the agencies in improving the maintenance, purchase and use of energy efficiency of information and communications technology systems. These

performance goals should measure information technology costs over a specific time horizon (3 to 5 years), providing a complete picture of all costs, including energy.

`(d) Report- Not later than 18 months after the date of enactment of the American Clean Energy and Security Act of 2009, and annually thereafter, the Director shall submit a report

to Congress on--

`(1) the progress of each agency in reducing energy use through its implementation strategy; and

`(2) new and emerging technologies that would help achieve increased energy efficiency.'.

SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.

(a) Goals- The energy efficiency goals of the United States are--

(1) to achieve an improvement in the overall energy productivity of the United States (measured in gross domestic product per unit of energy input) of at least 2.5 percent per

year by the year 2012; and

(2) to maintain that annual rate of improvement each year through 2030.

(b) Strategic Plan-

(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the `Secretary'), in cooperation with the

Administrator and the heads of other appropriate Federal agencies, shall develop a strategic plan to achieve the national goals for improvement in energy productivity established

under subsection (a).

(2) PUBLIC INPUT AND COMMENT- The Secretary shall develop the plan in a manner that provides appropriate opportunities for public input and comment.

(c) Plan Contents- The strategic plan shall--

(1) identify future regulatory, funding, and policy priorities that would assist the United States in meeting the national goals;

(2) include energy savings estimates for each sector; and

(3) include data collection methodologies and compilations used to establish baseline and energy savings data.

(d) Plan Updates-

(1) IN GENERAL- The Secretary shall--

(A) update the strategic plan biennially; and

(B) include the updated strategic plan in the national energy policy plan required by section 801 of the Department of Energy Organization Act (42 U.S.C. 7321).

(2) CONTENTS- In updating the plan, the Secretary shall--

(A) report on progress made toward implementing efficiency policies to achieve the national goals established under subsection (a); and

(B) verify, to the maximum extent practicable, energy savings resulting from the policies.

(e) Report to Congress and the Public- The Secretary shall submit to Congress, and make available to the public, the initial strategic plan developed under subsection (b) and

each updated plan.

SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.

(a) Definitions- In this section:

(1) AFFILIATED ISLAND- The term `affiliated island' means--

(A) the Commonwealth of Puerto Rico;

(B) Guam;

(C) American Samoa;

(D) the Commonwealth of the Northern Mariana Islands;

(E) the Federated States of Micronesia;

(F) the Republic of the Marshall Islands;

(G) the Republic of Palau; and

(H) the United States Virgin Islands.

(2) SECRETARY- The term `Secretary' means the Secretary of Energy (acting through the Assistant Secretary of Energy Efficiency and Renewable Energy), in consultation with

the Secretary of the Interior and the Secretary of State.

(3) TEAM- The term `team' means the team established by the Secretary under subsection (b).

(b) Establishment- As soon as practicable after the date of enactment of this Act, the Secretary shall assemble a team of technical, policy, and financial experts to address the

energy needs of each affiliated island--

(1) to reduce the reliance and expenditure of each affiliated island on imported fossil fuels;

(2) to increase the use by each affiliated island of indigenous, nonfossil fuel energy sources;

(3) to improve the performance of the energy infrastructure of the affiliated island through projects--

(A) to improve the energy efficiency of power generation, transmission, and distribution; and

(B) to increase consumer energy efficiency;

(4) to improve the performance of the energy infrastructure of each affiliated island through enhanced planning, education, and training;

(5) to adopt research-based and public-private partnership-based approaches as appropriate;

(6) to stimulate economic development and job creation; and

(7) to enhance the engagement by the Federal Government in international efforts to address island energy needs.

(c) Duties of Team-

(1) ENERGY ACTION PLANS-

(A) IN GENERAL- In accordance with subparagraph (B), the team shall provide technical, programmatic, and financial assistance to each utility of each affiliated island, and

the government of each affiliated island, as appropriate, to develop and implement an energy Action Plan for each affiliated island to reduce the reliance of each affiliated island on

imported fossil fuels through increased efficiency and use of indigenous clean-energy resources.

(B) REQUIREMENTS- Each Action Plan described in subparagraph (A) for each affiliated island shall require and provide for--

(i) the conduct of 1 or more studies to assess opportunities to reduce fossil fuel use through--

(I) the improvement of the energy efficiency of the affiliated island; and

(II) the increased use by the affiliated island of indigenous clean-energy resources;

(ii) the identification and implementation of the most cost-effective strategies and projects to reduce the dependence of the affiliated island on fossil fuels;

(iii) the promotion of education and training activities to improve the capacity of the local utilities of the affiliated island, and the government of the affiliated island, as

appropriate, to plan for, maintain, and operate the energy infrastructure of the affiliated island through the use of local or regional institutions, as appropriate;

(iv) the coordination of the activities described in clause (iii) to leverage the expertise and resources of international entities, the Department of Energy, the Department of

the Interior, and the regional utilities of the affiliated island;

(v) the identification, and development, as appropriate, of research-based and private-public, partnership approaches to implement the Action Plan; and

(vi) any other component that the Secretary determines to be necessary to reduce successfully the use by each affiliated island of fossil fuels.

(2) REPORTS TO SECRETARY- Not later than 1 year after the date on which the Secretary establishes the team and biennially thereafter, the team shall submit to the Secretary

a report that contains a description of the progress of each affiliated island in--

(A) implementing the Action Plan of the affiliated island developed under paragraph (1)(A); and

(B) reducing the reliance of the affiliated island on fossil fuels.

(d) Use of Regional Utility Organizations- To provide expertise to affiliated islands to assist the affiliated islands in meeting the purposes of this section, the Secretary shall

consider--

(1) including regional utility organizations in the establishment of the team; and

(2) providing assistance through regional utility organizations.

(e) Annual Reports to Congress- Not later than 30 days after the date on which the Secretary receives a report submitted by the team under subsection (c)(2), the Secretary shall

submit to the appropriate committees of Congress a report that contains a summary of the report of the team.

(f) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.

SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.

(a) EPA Study- The Administrator shall conduct a study to determine the feasibility of establishing a national program for measuring, reporting, publicly disclosing, and labeling

products or materials sold in the United States for their carbon content, and shall, not later than 18 months after the date of enactment of this Act, transmit a report to Congress which

shall include the following:

(1) A determination of whether a national product carbon disclosure program and labeling program would be effective in achieving the intended goals of achieving greenhouse

gas reductions and an examination of existing programs globally and their strengths and weaknesses.

(2) Criteria for identifying and prioritizing sectors and products and processes that should be covered in such program or programs.

(3) An identification of products, processes, or sectors whose inclusion could have a substantial carbon impact (prioritizing industrial products such as iron and steel,

aluminum, cement, chemicals, and paper products, and also including food, beverage, hygiene, cleaning, household cleaners, construction, metals, clothing, semiconductor, and

consumer electronics).

(4) Suggested methodology and protocols for measuring the carbon content of the products across the entire carbon lifecycle of such products for use in a carbon disclosure

program and labeling program.

(5) A review of existing greenhouse gas product accounting standards, methodologies, and practices including the Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and

Publically Available Specification 2050, and including a review of the strengths and weaknesses of each.

(6) A survey of secondary databases including the Manufacturing Energy Consumption Survey and evaluate the quality of data for use in a product carbon disclosure program

and product carbon labeling program and an identification of gaps in the data relative to the potential purposes of a national product carbon disclosure program and product carbon

labeling program and development of recommendations for addressing these data gaps.

(7) An assessment of the utility of comparing products and the appropriateness of product carbon standards.

(8) An evaluation of the information needed on a label for clear and accurate communication, including what pieces of quantitative and qualitative information needs to be

disclosed.

(9) An evaluation of the appropriate boundaries of the carbon lifecycle analysis for different sectors and products.

(10) An analysis of whether default values should be developed for products whose producer does not participate in the program or does not have data to support a disclosure

or label and determine best ways to develop such default values.

(11) A recommendation of certification and verification options necessary to assure the quality of the information and avoid greenwashing or the use of insubstantial or

meaningless environmental claims to promote a product.

(12) An assessment of options for educating consumers about product carbon content and the product carbon disclosure program and product carbon labeling program.

(13) An analysis of the costs and timelines associated with establishing a national product carbon disclosure program and product carbon labeling program, including options

for a phased approach. Costs should include those for businesses associated with the measurement of carbon footprints and those associated with creating a product carbon label

and managing and operating a product carbon labeling program, and options for minimizing these costs.

(14) An evaluation of incentives (such as financial incentives, brand reputation, and brand loyalty) to determine whether reductions in emissions can be accelerated through

encouraging more efficient manufacturing or by encouraging preferences for lower-emissions products to substitute for higher-emissions products whose level of performance is no

better.

(b) Development of National Carbon Disclosure Program- Upon conclusion of the study, and not more than 36 months after the date of enactment of this Act, the Administrator

shall establish a national product carbon disclosure program, participation in which shall be voluntary, and which may involve a product carbon label with broad applicability to the

wholesale and consumer markets to enable and encourage knowledge about carbon content by producers and consumers and to inform efforts to reduce energy consumption

(carbon dioxide equivalent emissions) nationwide. In developing such a program, the Administrator shall--

(1) consider the results of the study conducted under subsection (a);

(2) consider existing and planned programs and proposals and measurement standards (including the Publicly Available Specification 2050, standards to be developed by the

World Resource Institute/World Business Council for Sustainable Development, the International Standards Organization, and the bill AB19 pending in the California legislature);

(3) consider the compatibility of a national product carbon disclosure program with existing programs;

(4) utilize incentives and other means to spur the adoption of product carbon disclosure and product carbon labeling;

(5) develop protocols and parameters for a product carbon disclosure program, including a methodology and formula for assessing, verifying, and potentially labeling a

product's greenhouse gas content, and for data quality requirements to allow for product comparison;

(6) create a means to--

(A) document best practices;

(B) ensure clarity and consistency;

(C) work with suppliers, manufacturers, and retailers to encourage participation;

(D) ensure that protocols are consistent and comparable across like products; and

(E) evaluate the effectiveness of the program;

(7) make publicly available information on product carbon content to ensure transparency;

(8) provide for public outreach, including a consumer education program to increase awareness;

(9) develop training and education programs to help businesses learn how to measure and communicate their carbon footprint and easy tools and templates for businesses

to use to reduce cost and time to measure their products' carbon lifecycle;

(10) consult with the Secretary of Energy, the Secretary of Commerce, the Federal Trade Commission, and other Federal agencies, as necessary;

(11) gather input from stakeholders through consultations, public workshops or hearings with representatives of consumer product manufacturers, consumer groups, and

environmental groups;

(12) utilize systems for verification and product certification that will ensure that claims manufacturers make about their products are valid;

(13) create a process for reviewing the accuracy of product carbon label information and protecting the product carbon label in the case of a change in the product's energy

source, supply chain, ingredients, or other factors, and specify the frequency to which data should be updated; and

(14) develop a standardized, easily understandable carbon label, if appropriate, and create a process for responding to inaccuracies and misuses of such a label.

(c) Report to Congress- Not later than 5 years after the program is established pursuant to subsection (b), the Administrator shall report to Congress on the effectiveness and

impact of the program, the level of voluntary participation, and any recommendations for additional measures.

(d) Definitions- As used in this section--

(1) the term `carbon content' means the amount of greenhouse gas emissions and their warming impact on the atmosphere expressed in carbon dioxide equivalent

associated with a product's value chain;

(2) the term `carbon footprint' means the level of greenhouse gas emissions produced by a particular activity, service, or entity; and

(3) the term `carbon lifecycle' means the greenhouse gas emissions that are released as part of the processes of creating, producing, processing or manufacturing, modifying,

transporting, distributing, storing, using, recycling, or disposing of goods and services.

(e) Authorization of Appropriations- There is authorized to be appropriated to the Administrator $5,000,000 for the study required by subsection (a) and $25,000,000 for each of

fiscal years 2010 through 2025 for the program required under subsection (b).

TITLE III--REDUCING GLOBAL WARMING POLLUTION

SEC. 301. SHORT TITLE.

This title, and sections 112, 116, 221, 222, 223, and 401 of this Act, may be cited as the `Safe Climate Act'.

Subtitle A--Reducing Global Warming Pollution

SEC. 311. REDUCING GLOBAL WARMING POLLUTION.

The Clean Air Act (42 U.S.C. and following) is amended by adding after title VI the following new title:

`TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

`PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

`SEC. 701. FINDINGS AND PURPOSE.

`(a) Findings- The Congress finds as follows:

`(1) Global warming poses a significant threat to the national security, economy, public health and welfare, and environment of the United States, as well as of other nations.

`(2) Reviews of scientific studies, including by the Intergovernmental Panel on Climate Change and the National Academy of Sciences, demonstrate that global warming is the

result of the combined anthropogenic greenhouse gas emissions from numerous sources of all types and sizes. Each increment of emission, when combined with other emissions,

causes or contributes materially to the acceleration and extent of global warming and its adverse effects for the lifetime of such gas in the atmosphere. Accordingly, controlling

emissions in small as well as large amounts is essential to prevent, slow the pace of, reduce the threats from, and mitigate global warming and its adverse effects.

`(3) Because they induce global warming, greenhouse gas emissions cause or contribute to injuries to persons in the United States, including--

`(A) adverse health effects such as disease and loss of life;

`(B) displacement of human populations;

`(C) damage to property and other interests related to ocean levels, acidification, and ice changes;

`(D) severe weather and seasonal changes;

`(E) disruption, costs, and losses to business, trade, employment, farms, subsistence, aesthetic enjoyment of the environment, recreation, culture, and tourism;

`(F) damage to plants, forests, lands, and waters;

`(G) harm to wildlife and habitat;

`(H) scarcity of water and the decreased abundance of other natural resources;

`(I) worsening of tropospheric air pollution;

`(J) substantial threats of similar damage; and

`(K) other harm.

`(4) That many of these effects and risks of future effects of global warming are widely shared does not minimize the adverse effects individual persons have suffered, will

suffer, and are at risk of suffering because of global warming.

`(5) That some of the adverse and potentially catastrophic effects of global warming are at risk of occurring and not a certainty does not negate the harm persons suffer from

actions that increase the likelihood, extent, and severity of such future impacts.

`(6) Nations of the world look to the United States for leadership in addressing the threat of and harm from global warming. Full implementation of the Safe Climate Act is

critical to engage other nations in an international effort to mitigate the threat of and harm from global warming.

`(7) Global warming and its adverse effects are occurring and are likely to continue and increase in magnitude, and to do so at a greater and more harmful rate, unless the

Safe Climate Act is fully implemented and enforced in an expeditious manner.

`(b) Purpose- It is the general purpose of the Safe Climate Act to help prevent, reduce the pace of, mitigate, and remedy global warming and its adverse effects. To fulfill such

purpose, it is necessary to--

`(1) require the timely fulfillment of all governmental acts and duties, both substantive and procedural, and the prompt compliance of covered entities with the requirements of

the Safe Climate Act;

`(2) establish and maintain an effective, transparent, and fair market for emission allowances and preserve the integrity of the cap on emissions and of offset credits;

`(3) advance the production and deployment of clean energy and energy efficiency technologies; and

`(4) ensure effective enforcement of the Safe Climate Act by citizens, States, Indian tribes, and all levels of government because each violation of the Safe Climate Act is likely to

result in an additional increment of greenhouse gas emission and will slow the pace of implementation of the Safe Climate Act and delay the achievement of the goals set forth in

section 702, and cause or contribute to global warming and its adverse effects.

`SEC. 702. ECONOMY-WIDE REDUCTION GOALS.

`The goals of the Safe Climate Act are to reduce steadily the quantity of United States greenhouse gas emissions such that--

`(1) in 2012, the quantity of United States greenhouse gas emissions does not exceed 97 percent of the quantity of United States greenhouse gas emissions in 2005;

`(2) in 2020, the quantity of United States greenhouse gas emissions does not exceed 80 percent of the quantity of United States greenhouse gas emissions in 2005;

`(3) in 2030, the quantity of United States greenhouse gas emissions does not exceed 58 percent of the quantity of United States greenhouse gas emissions in 2005; and

`(4) in 2050, the quantity of United States greenhouse gas emissions does not exceed 17 percent of the quantity of United States greenhouse gas emissions in 2005.

`SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.

`(a) In General- The regulations issued under section 721 shall cap and reduce annually the greenhouse gas emissions of capped sources each calendar year beginning in

2012 such that--

`(1) in 2012, the quantity of greenhouse gas emissions from capped sources does not exceed 97 percent of the quantity of greenhouse gas emissions from such sources in

2005;

`(2) in 2020, the quantity of greenhouse gas emissions from capped sources does not exceed 83 percent of the quantity of greenhouse gas emissions from such sources in

2005;

`(3) in 2030, the quantity of greenhouse gas emissions from capped sources does not exceed 58 percent of the quantity of greenhouse gas emissions from such sources in

2005; and

`(4) in 2050, the quantity of greenhouse gas emissions from capped sources does not exceed 17 percent of the quantity of greenhouse gas emissions from such sources in

2005.

`(b) Definition- For purposes of this section, the term `greenhouse gas emissions from such sources in 2005' means emissions to which section 722 would have applied if the

requirements of this title for the specified year had been in effect for 2005.

`SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.

`For the purposes of decreasing the likelihood of catastrophic climate change, preserving tropical forests, building capacity to generate offset credits, and facilitating international

action on global warming, the Administrator shall set aside the percentage specified in section 781 of the quantity of emission allowances established under section 721(a) for each

year, to be used to achieve a reduction of greenhouse gas emissions from deforestation in developing countries in accordance with part E. In 2020, activities supported under part E

shall provide greenhouse gas reductions in an amount equal to an additional 10 percentage points of reductions from United States greenhouse gas emissions in 2005. The

Administrator shall distribute these allowances with respect to activities in countries that enter into and implement agreements or arrangements relating to reduced deforestation as

described in section 754(a)(2).

`SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.

`(a) In General- The Administrator shall, in consultation with appropriate Federal agencies, submit to Congress a report not later than July 1, 2013, and every 4 years thereafter,

that includes--

`(1) an analysis of key findings based on the latest scientific information and data relevant to global climate change;

`(2) an analysis of capabilities to monitor and verify greenhouse gas reductions on a worldwide basis, including for the United States, as required under the Safe Climate Act;

and

`(3) an analysis of the status of worldwide greenhouse gas reduction efforts, including implementation of the Safe Climate Act and other policies, both domestic and

international, for reducing greenhouse gas emissions, preventing dangerous atmospheric concentrations of greenhouse gases, preventing significant irreversible consequences of

climate change, and reducing vulnerability to the impacts of climate change.

`(b) Exception- Paragraph (3) of subsection (a) shall not apply to the first report submitted under such subsection.

`(c) Latest Scientific Information- The analysis required under subsection (a)(1) shall--

`(1) address existing scientific information and reports, considering, to the greatest extent possible, the most recent assessment report of the Intergovernmental Panel on

Climate Change, reports by the United States Global Change Research Program, the Natural Resources Climate Change Adaptation Panel established under section 475 of the

American Clean Energy and Security Act of 2009, and Federal agencies, and the European Union's global temperature data assessment; and

`(2) review trends and projections for--

`(A) global and country-specific annual emissions of greenhouse gases, and cumulative greenhouse gas emissions produced between 1850 and the present, including--

`(i) global cumulative emissions of anthropogenic greenhouse gases;

`(ii) global annual emissions of anthropogenic greenhouse gases; and

`(iii) by country, annual total, annual per capita, and cumulative anthropogenic emissions of greenhouse gases for the top 50 emitting nations;

`(B) significant changes, both globally and by region, in annual net non-anthropogenic greenhouse gas emissions from natural sources, including permafrost, forests, or

oceans;

`(C) global atmospheric concentrations of greenhouse gases, expressed in annual concentration units as well as carbon dioxide equivalents based on 100-year global

warming potentials;

`(D) major climate forcing factors, such as aerosols;

`(E) global average temperature, expressed as seasonal and annual averages in land, ocean, and land-plus-ocean averages; and

`(F) sea level rise;

`(3) assess the current and potential impacts of global climate change on--

`(A) human populations, including impacts on public health, economic livelihoods, subsistence, human infrastructure, and displacement or permanent relocation due to

flooding, severe weather, extended drought, erosion, or other ecosystem changes;

`(B) freshwater systems, including water resources for human consumption and agriculture and natural and managed ecosystems, flood and drought risks, and relative

humidity;

`(C) the carbon cycle, including impacts related to the thawing of permafrost, the frequency and intensity of wildfire, and terrestrial and ocean carbon sinks;

`(D) ecosystems and animal and plant populations, including impacts on species abundance, phenology, and distribution;

`(E) oceans and ocean ecosystems, including effects on sea level, ocean acidity, ocean temperatures, coral reefs, ocean circulation, fisheries, and other indicators of ocean

ecosystem health;

`(F) the cryosphere, including effects on ice sheet mass balance, mountain glacier mass balance, and sea-ice extent and volume;

`(G) changes in the intensity, frequency, or distribution of severe weather events, including precipitation, tropical cyclones, tornadoes, and severe heat waves;

`(H) agriculture and forest systems; and

`(I) any other indicators the Administrator deems appropriate;

`(4) summarize any significant socio-economic impacts of climate change in the United States, including the territories of the United States, drawing on work by Federal

agencies and the academic literature, including impacts on--

`(A) public health;

`(B) economic livelihoods and subsistence;

`(C) displacement or permanent relocation due to flooding, severe weather, extended drought, or other ecosystem changes;

`(D) human infrastructure, including coastal infrastructure vulnerability to extreme events and sea level rise, river floodplain infrastructure, and sewer and water

management systems;

`(E) agriculture and forests, including effects on potential growing season, distribution, and yield;

`(F) water resources for human consumption, agriculture and natural and managed ecosystems, flood and drought risks, and relative humidity;

`(G) energy supply and use; and

`(H) transportation;

`(5) in assessing risks and impacts, use a risk management framework, including both qualitative and quantitative measures, to assess the observed and projected impacts

of current and future climate change, accounting for--

`(A) both monetized and non-monetized losses;

`(B) potential nonlinear, abrupt, or essentially irreversible changes in the climate system;

`(C) potential nonlinear increases in the cost of impacts;

`(D) potential low-probability, high impact events; and

`(E) whether impacts are transitory or essentially permanent; and

`(6) based on the findings of the Administrator under this section, as well as assessments produced by the Intergovernmental Panel on Climate Change, the United States

Global Change Research program, and other relevant scientific entities--

`(A) describe increased risks to natural systems and society that would result from an increase in global average temperature 3.6 degrees Fahrenheit (2 degrees Celsius)

above the pre-industrial average or an increase in atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent; and

`(B) identify and assess--

`(i) significant residual risks not avoided by the thresholds described in subparagraph (A);

`(ii) alternative thresholds or targets that may more effectively limit the risks identified pursuant to clause (i); and

`(iii) thresholds above those described in subparagraph (A) which significantly increase the risk of certain impacts or render them essentially permanent.

`(d) Status of Monitoring and Verification Capabilities to Evaluate Greenhouse Gas Reduction Efforts- The analysis required under subsection (a)(2) shall evaluate the capabilities

of the monitoring, reporting, and verification systems used to quantify progress in achieving reductions in greenhouse gas emissions both globally and in the United States (as

described in section 702), including--

`(1) quantification of emissions and emission reductions by entities participating in the cap and trade program under this title;

`(2) quantification of emissions and emission reductions by entities participating in the offset program under this title;

`(3) quantification of emission and emissions reductions by entities regulated by performance standards;

`(4) quantification of aggregate net emissions and emissions reductions by the United States; and

`(5) quantification of global changes in net emissions and in sources and sinks of greenhouse gases.

`(e) Status of Greenhouse Gas Reduction Efforts- The analysis required under subsection (a)(3) shall address--

`(1) whether the programs under Safe Climate Act and other Federal statutes are resulting in sufficient United States greenhouse gas emissions reductions to meet the

emissions reduction goals described in section 702, taking into account the use of offsets; and

`(2) whether United States actions, taking into account international actions, commitments, and trends, and considering the range of plausible emissions scenarios, are

sufficient to avoid--

`(A) atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent;

`(B) global average surface temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average, or such other temperature thresholds as the

Administrator deems appropriate; and

`(C) other temperature or greenhouse gas thresholds identified pursuant to subsection (c)(6)(B).

`(f) Recommendations-

`(1) LATEST SCIENTIFIC INFORMATION- Based on the analysis described in subsection (a)(1), each report under subsection (a) shall identify actions that could be taken to--

`(A) improve the characterization of changes in the earth-climate system and impacts of global climate change;

`(B) better inform decision making and actions related to global climate change;

`(C) mitigate risks to natural and social systems; and

`(D) design policies to better account for climate risks.

`(2) MONITORING, REPORTING AND VERIFICATION- Based on the analysis described in subsection (a)(2), each report under subsection (a) shall identify key gaps in

measurement, reporting, and verification capabilities and make recommendations to improve the accuracy and reliability of those capabilities.

`(3) STATUS OF GREENHOUSE GAS REDUCTION EFFORTS- Based on the analysis described in subsection (a)(3), taking into account international actions, commitments,

and trends, and considering the range of plausible emissions scenarios, each report under subsection (a) shall identify--

`(A) the quantity of additional reductions required to meet the emissions reduction goals in section 702;

`(B) the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds identified in subsection (e);

and

`(C) possible strategies and approaches for achieving additional reductions.

`(g) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary.

`SEC. 706. NATIONAL ACADEMY REVIEW.

`(a) In General- Not later than 1 year after the date of enactment of this title, the Administrator shall offer to enter into a contract with the National Academy of Sciences (in this

section referred to as the `Academy') under which the Academy shall, not later than July 1, 2014, and every 4 years thereafter, submit to Congress and the Administrator a report that

includes--

`(1) a review of the most recent report and recommendations issued under section 705; and

`(2) an analysis of technologies to achieve reductions in greenhouse gas emissions.

`(b) Failure to Issue a Report- In the event that the Administrator has not issued all or part of the most recent report required under section 705, the Academy shall conduct its own

review and analysis of the required information.

`(c) Technological Information- The analysis required under subsection (a)(2) shall--

`(1) review existing technological information and reports, including the most recent reports by the Department of Energy, the United States Global Change Research Program,

the Intergovernmental Panel on Climate Change, and the International Energy Agency and any other relevant information on technologies or practices that reduce or limit greenhouse

gas emissions;

`(2) include the participation of technical experts from relevant private industry sectors;

`(3) review the current and future projected deployment of technologies and practices in the United States that reduce or limit greenhouse gas emissions, including--

`(A) technologies for capture and sequestration of greenhouse gases;

`(B) technologies to improve energy efficiency;

`(C) low- or zero-greenhouse gas emitting energy technologies;

`(D) low- or zero-greenhouse gas emitting fuels;

`(E) biological sequestration practices and technologies; and

`(F) any other technologies the Academy deems relevant; and

`(4) review and compare the emissions reduction potential, commercial viability, market penetration, investment trends, and deployment of the technologies described in

paragraph (3), including--

`(A) the need for additional research and development, including publicly funded research and development;

`(B) the extent of commercial deployment, including, where appropriate, a comparison to the cost and level of deployment of conventional fossil fuel-fired energy

technologies and devices; and

`(C) an evaluation of any substantial technological, legal, or market-based barriers to commercial deployment.

`(d) Recommendations-

`(1) LATEST SCIENTIFIC INFORMATION- Based on the review described in subsection (a)(1), the Academy shall identify actions that could be taken to--

`(A) improve the characterization of changes in the earth-climate system and impacts of global climate change;

`(B) better inform decision making and actions related to global climate change;

`(C) mitigate risks to natural and social systems;

`(D) design policies to better account for climate risks; and

`(E) improve the accuracy and reliability of capabilities to monitor, report, and verify greenhouse gas emissions reduction efforts.

`(2) TECHNOLOGICAL INFORMATION- Based on the analysis described in subsection (a)(2), the Academy shall identify--

`(A) additional emissions reductions that may be possible as a result of technologies described in the analysis;

`(B) barriers to the deployment of such technologies; and

`(C) actions that could be taken to speed deployment of such technologies.

`(3) STATUS OF GREENHOUSE GAS REDUCTION EFFORTS- Based on the review described in subsection (a)(1), the Academy shall identify--

`(A) the quantity of additional reductions required to meet the emissions reduction goals described in section 702; and

`(B) the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds described in section

705(c)(6)(A) or identified pursuant to section 705(c)(6)(B).

`(e) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary.

`SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.

`Not later than July 1, 2015, and every 4 years thereafter--

`(1) the President shall direct relevant Federal agencies to use existing statutory authority to take appropriate actions identified in the reports submitted under sections 705 and

706 and to address any shortfalls identified in such reports; and

`(2) in the event that the National Academy of Sciences has concluded, in the most recent report submitted under section 706, that the United States will not achieve the

necessary domestic greenhouse gas emissions reductions, or that global actions will not maintain safe global average surface temperature and atmospheric greenhouse gas

concentration thresholds, the President shall submit to Congress a plan identifying domestic and international actions that will achieve necessary additional greenhouse gas

reductions, including any recommendations for legislative action.

`PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE GASES

`SEC. 711. DESIGNATION OF GREENHOUSE GASES.

`(a) Greenhouse Gases- For purposes of this title, the following are greenhouse gases:

`(1) Carbon dioxide.

`(2) Methane.

`(3) Nitrous oxide.

`(4) Sulfur hexafluoride.

`(5) Hydrofluorocarbons from a chemical manufacturing process at an industrial stationary source.

`(6) Any perfluorocarbon.

`(7) Nitrogen trifluoride.

`(8) Any other anthropogenic gas designated as a greenhouse gas by the Administrator under this section.

`(b) Determination on Administrator's Initiative- The Administrator shall, by rule--

`(1) determine whether 1 metric ton of another anthropogenic gas makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide;

`(2) determine the carbon dioxide equivalent value for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1);

`(3) for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1) and that is used as a substitute for a class I or class II

substance under title VI, determine the extent to which to regulate that gas under section 619 and specify appropriate compliance obligations under section 619;

`(4) designate as a greenhouse gas for purposes of this title each gas for which the Administrator makes an affirmative determination under paragraph (1), to the extent that it

is not regulated under section 619; and

`(5) specify the appropriate compliance obligations under this title for each gas designated as a greenhouse gas under paragraph (4).

`(c) Petitions to Designate a Greenhouse Gas-

`(1) IN GENERAL- Any person may petition the Administrator to designate as a greenhouse gas any anthropogenic gas 1 metric ton of which makes the same or greater

contribution to global warming over 100 years as 1 metric ton of carbon dioxide.

`(2) CONTENTS OF PETITION- The petitioner shall provide sufficient data, as specified by rule by the Administrator, to demonstrate that the gas is likely to be a greenhouse

gas and is likely to be produced, imported, used, or emitted in the United States. To the extent practicable, the petitioner shall also identify producers, importers, distributors, users,

and emitters of the gas in the United States.

`(3) REVIEW AND ACTION BY THE ADMINISTRATOR- Not later than 90 days after receipt of a petition under paragraph (2), the Administrator shall determine whether the

petition is complete and notify the petitioner and the public of the decision.

`(4) ADDITIONAL INFORMATION- The Administrator may require producers, importers, distributors, users, or emitters of the gas to provide information on the contribution of the

gas to global warming over 100 years compared to carbon dioxide.

`(5) TREATMENT OF PETITION- For any substance used as a substitute for a class I or class II substance under title VI, the Administrator may elect to treat a petition under this

subsection as a petition to list the substance as a class II, group II substance under section 619, and may require the petition to be amended to address listing criteria promulgated

under that section.

`(6) DETERMINATION- Not later than 2 years after receipt of a complete petition, the Administrator shall, after notice and an opportunity for comment--

`(A) issue and publish in the Federal Register--

`(i) a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of

carbon dioxide; and

`(ii) an explanation of the decision; or

`(B) determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide,

and take the actions described in subsection (b) with respect to such gas.

`(7) GROUNDS FOR DENIAL- The Administrator may not deny a petition under this subsection solely on the basis of inadequate Environmental Protection Agency resources or

time for review.

`(d) Science Advisory Board Consultation-

`(1) CONSULTATION- The Administrator shall--

`(A) give notice to the Science Advisory Board prior to making a determination under subsection (b)(1), (c)(6), or (e)(2)(B);

`(B) consider the written recommendations of the Science Advisory Board under paragraph (2) regarding the determination; and

`(C) consult with the Science Advisory Board regarding such determination, including consultation subsequent to receipt of such written recommendations.

`(2) FORMULATION OF RECOMMENDATIONS- Upon receipt of notice under paragraph (1)(A) regarding a pending determination under subsection (b)(1), (c)(6), or (e)(2)(B),

the Science Advisory Board shall--

`(A) formulate recommendations regarding such determination, subject to a peer review process; and

`(B) submit such recommendations in writing to the Administrator.

`(e) Manufacturing and Emission Notices-

`(1) NOTICE REQUIREMENT-

`(A) IN GENERAL- Effective 24 months after the date of enactment of this title, no person may manufacture or introduce into interstate commerce a fluorinated gas, or emit a

significant quantity, as determined by the Administrator, of any fluorinated gas that is generated as a byproduct during the production or use of another fluorinated gas, unless--

`(i) the gas is designated as a greenhouse gas under this section or is an ozone-depleting substance listed as a class I or class II substance under title VI;

`(ii) the Administrator has determined that 1 metric ton of such gas does not make a contribution to global warming that is equal to or greater than that made by 1 metric

ton of carbon dioxide; or

`(iii) the person manufacturing or importing the gas for distribution into interstate commerce, or emitting the gas, has submitted to the Administrator, at least 90 days

before the start of such manufacture, introduction into commerce, or emission, a notice of such person's manufacture, introduction into commerce, or emission of such gas, and the

Administrator has not determined that notice or a substantially similar notice is incomplete.

`(B) ALTERNATIVE COMPLIANCE- For a gas that is a substitute for a class I or class II substance under title VI and either has been listed as acceptable for use under

section 612 or is currently subject to evaluation under section 612, the Administrator may accept the notice and information provided pursuant to that section as fulfilling the obligation

under clause (iii) of subparagraph (A).

`(2) REVIEW AND ACTION BY THE ADMINISTRATOR-

`(A) COMPLETENESS- Not later than 90 days after receipt of notice under paragraph (1)(A)(iii) or (B), the Administrator shall determine whether the notice is complete.

`(B) DETERMINATION- If the Administrator determines that the notice is complete, the Administrator shall, after notice and an opportunity for comment, not later than 12

months after receipt of the notice--

`(i) issue and publish in the Federal Register a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to

or greater than that made by 1 metric ton of carbon dioxide and an explanation of the decision; or

`(ii) determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon

dioxide, and take the actions described in subsection (b) with respect to such gas.

`(f) Regulations- Not later than one year after the date of enactment of this title, the Administrator shall promulgate regulations to carry out this section. Such regulations shall

include--

`(1) requirements for the contents of a petition submitted under subsection (c);

`(2) requirements for the contents of a notice required under subsection (e); and

`(3) methods and standards for evaluating the carbon dioxide equivalent value of a gas.

`(g) Gases Regulated Under Title VI- The Administrator shall not designate a gas as a greenhouse gas under this section to the extent that the gas is regulated under title VI.

`(h) Savings Clause- Nothing in this section shall be interpreted to relieve any person from complying with the requirements of section 612.

`SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE GASES.

`(a) Measure of Quantity of Greenhouse Gases- Any provision of this title or title VIII that refers to a quantity or percentage of a quantity of greenhouse gases shall mean the quantity

or percentage of the greenhouse gases expressed in carbon dioxide equivalents.

`(b) Initial Value- Except as provided by the Administrator under this section or section 711--

`(1) the carbon dioxide equivalent value of greenhouse gases for purposes of this Act shall be as follows:

`CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES

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Greenhouse gas (1 metric ton) Carbon dioxide equivalent (metric tons)

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Carbon dioxide 1

Methane 25

Nitrous oxide 298

HFC-23 14,800

HFC-125 3,500

HFC-134a 1,430

HFC-143a 4,470

HFC-152a 124

HFC-227ea 3,220

HFC-236fa 9,810

HFC-4310mee 1,640

CF4 7,390

C2F6 12,200

C4F10 8,860

C6F14 9,300

SF6 22,800

NF3 17,200

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; and