H.R. 2454 (111th): American Clean Energy and Security Act of 2009

The text of the bill below is as of Jul 7, 2009 (Placed on Calendar in the Senate).

Source: GPO

II

Calendar No. 97

111th CONGRESS

1st Session

H. R. 2454

IN THE SENATE OF THE UNITED STATES

July 6, 2009

Received and read the first time

July 7, 2009

Read the second time and placed on the calendar

AN ACT

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

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. 610. Combined efficiency and renewable electricity standard.

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

Sec. 103. Federal renewable energy purchases.

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. Definition of renewable biomass.

Sec. 127. Open fuel standard.

Sec. 32920. Open fuel standard for transportation.

Sec. 128. Diesel emissions reduction.

Sec. 129. Loan guarantees for projects to construct renewable fuel pipelines.

Sec. 130. Fleet vehicles.

Sec. 130A. Report on natural gas vehicle emissions reductions.

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.

Sec. 133. Support of Indian 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 and siting.

Sec. 216A Transmission planning.

Sec. 216B. Siting and construction in the Western Interconnection.

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 and Research

Sec. 171. Energy Innovation Hubs.

Sec. 172. Advanced energy research.

Sec. 173. Building Assessment Centers.

Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.

Sec. 175. High efficiency gas turbine research, development, and demonstration.

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. Indirect support.

Sec. 189. Federal credit authority.

Sec. 190. General provisions.

Sec. 191. Conforming amendments.

Subtitle J—Miscellaneous

Sec. 195. Increased hydroelectric generation at existing Federal facilities.

Sec. 196. Clean technology business competition grant program.

Sec. 197. National Bioenergy Partnership.

Sec. 198. Office of Consumer Advocacy.

Sec. 319. Office of Consumer Advocacy.

Sec. 199. Development corporation for renewable power borrowing authority.

Sec. 199A. Study.

Title II—Energy Efficiency

Subtitle A—Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.

Sec. 304. 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.

Sec. 207. Community building code administration grants.

Sec. 208. Solar energy systems building permit requirements for receipt of community development block grant funds.

Sec. 209. Prohibition of restrictions on residential installation of solar energy system.

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. 334. Jurisdiction and venue.

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

Sec. 215. WaterSense.

Sec. 216. Federal procurement of water efficient products.

Sec. 217. Early adopter water efficient product incentive 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—Transportation Emissions

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.

Sec. 347. Motor efficiency rebate program.

Sec. 246. Clean energy manufacturing revolving loan fund program.

Sec. 27. Clean energy manufacturing revolving loan fund program.

Sec. 247. Clean energy and efficiency manufacturing partnerships.

Sec. 248. Technical amendments.

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.

Sec. 265. Consumer behavior research.

Subtitle G—Miscellaneous

Sec. 271. Energy efficient information and communications technologies.

Sec. 543. 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.

Sec. 275. Industrial energy efficiency education and training initiative.

Sec. 276. Sense of Congress.

Subtitle H—Green Resources for Energy Efficient Neighborhoods

Sec. 281. Short title.

Sec. 282. Definitions.

Sec. 283. Implementation of energy efficiency participation incentives for HUD programs.

Sec. 284. Basic HUD energy efficiency standards and standards for additional credit.

Sec. 285. Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance.

Sec. 286. Additional credit for Fannie Mae and Freddie Mac housing goals for energy-efficient and location-efficient mortgages.

Sec. 287. Duty to serve underserved markets for energy-efficient and location-efficient mortgages.

Sec. 288. Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs.

Sec. 543. Consideration of energy efficiency.

Sec. 289. Energy-efficient mortgages and location-efficient mortgages education and outreach campaign.

Sec. 290. Collection of information on energy-efficient and location-efficient mortgages through Home Mortgage Disclosure Act.

Sec. 291. Ensuring availability of homeowners insurance for homes not connected to electricity grid.

Sec. 292. Mortgage incentives for energy-efficient multifamily housing.

Sec. 293. Energy-efficient certifications for manufactured housing with mortgages.

Sec. 294. Assisted housing energy loan pilot program.

Sec. 295. Making it green.

Sec. 296. Residential energy efficiency block grant program.

Sec. 123. Residential energy efficiency block grant program.

Sec. 297. Including sustainable development and transportation strategies in comprehensive housing affordability strategies.

Sec. 298. Grant program to increase sustainable low-income community development capacity.

Sec. 299. HOPE VI green developments requirement.

Sec. 299A. Consideration of energy efficiency improvements in appraisals.

Sec. 299B. Housing Assistance Council.

Sec. 299C. Rural housing and economic development assistance.

Sec. 299D. Loans to States and Indian tribes to carry out renewable energy sources activities.

Sec. 299E. Green banking centers.

Sec. 299F. GAO reports on availability of affordable mortgages.

Sec. 299G. Public housing energy cost report.

Sec. 299H. Secondary market for residential renewable energy lease instruments.

Sec. 299I. Green guarantees.

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, propane, and kerosene consumers.

Sec. 787. Allocations to refineries.

Sec. 788. Supplemental agriculture and renewable energy incentives programs.

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.

Sec. 795. Exchange for early action offset credits.

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. 619. Hydrofluorocarbons (HFCs).

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.

Sec. 339. National strategy for domestic biological carbon sequestration.

Sec. 340. Reducing acid rain and mercury pollution.

Subtitle D—Carbon Market Assurance

Sec. 341. Carbon market assurance.

Part IV—Carbon Market Assurance

Sec. 401. Oversight and assurance of carbon markets.

Sec. 402. Applicability of Part III provisions.

Sec. 1041. Fraud and false statements in connection with regulated allowances.

Sec. 342. Carbon derivative markets.

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 antitrust law or authority of the Federal Trade Commission.

Sec. 358. Effect of derivatives regulatory reform legislation.

Sec. 359. Cease-and-desist authority.

Sec. 360. Presidential review of regulations.

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. Definitions.

Subpart 1—Emission allowance rebate program

Sec. 763. Eligible industrial sectors.

Sec. 764. Distribution of emission allowance rebates.

Subpart 2—Promoting international reductions in industrial emissions

Sec. 765. International negotiations.

Sec. 766. United States negotiating objectives with respect to multilateral environmental negotiations.

Sec. 767. Presidential reports and determinations.

Sec. 768. International reserve allowance program.

Sec. 769. Iron and steel sector.

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.

Sec. 423. Development of Information and Resources clearinghouse for vocational education and job training in renewable energy sectors.

Sec. 424. Monitoring program effectiveness.

Sec. 424A. Green construction careers demonstration project.

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 refund program.

Title XXII—Energy refund program

Sec. 2201. Energy refund program.

Sec. 432. Modification of earned income credit amount for individuals with no qualifying children.

Sec. 433. Protection of Social Security and Medicare trust funds.

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. Global change research and data management.

Sec. 452. National Climate Service.

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.

Title V—Agricultural and Forestry Related Offsets

Subtitle A—Offset Credit Program From Domestic Agricultural and Forestry Sources

Sec. 501. Definitions.

Sec. 502. Establishment of offset credit program from domestic agricultural and forestry sources.

Sec. 503. List of eligible domestic agricultural and forestry offset practice types.

Sec. 504. Requirements for domestic agricultural and forestry practices.

Sec. 505. Project plan submission and approval.

Sec. 506. Verification of offset practices.

Sec. 507. Certification of offset credits.

Sec. 508. Ownership and transfer of offset credits.

Sec. 509. Program review and revision.

Sec. 510. Environmental considerations.

Sec. 511. Audits.

Subtitle B—USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee

Sec. 531. Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee.

Subtitle C—Miscellaneous

Sec. 551. International indirect land use changes.

Sec. 552. Biomass-based diesel.

Sec. 553. Modification of definition of renewable biomass.

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.

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.

I

Clean Energy

A

Combined Efficiency and Renewable Electricity Standard

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:

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 increment of electric output of a combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs).

(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)

Central procurement State

The term ‘central procurement State’ means a State that, as of January 1, 2009, had adopted and implemented a legally enforceable mandate that, in lieu of requiring utilities to submit credits or certificates issued based on generation of electricity from (or to purchase or generate electricity from) resources defined by the State as renewable, requires retail electric suppliers to collect payments from electricity ratepayers within the State that are used for central procurement, by a State agency or a public benefit corporation established pursuant to State law, of credits or certificates issued based on generation of electricity from resources defined by the State as renewable.

(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)

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.

(12)

Qualified hydropower

The term qualified hydropower means—

(A)

energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1988, 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, 1988, 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.

(13)

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, tribal, 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 section 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.

(14)

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.

(15)

Renewable biomass

The term renewable biomass means any of the following:

(A)

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 stands, late-successional stands (except for dead, severely damaged, or badly infested trees), 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)

Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—

(i)

renewable plant material, including—

(I)

feed grains;

(II)

other agricultural commodities;

(III)

other plants and trees; and

(IV)

algae; and

(ii)

waste material, including—

(I)

crop residue;

(II)

other vegetative waste material (including wood waste and wood residues);

(III)

animal waste and byproducts (including fats, oils, greases, and manure);

(IV)

construction waste; and

(V)

food waste and yard waste.

(C)

Residues and byproducts from wood, pulp, or paper products facilities.

(16)

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.

(17)

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).

(18)

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.

(19)

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.

(20)

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.

(21)

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.

(22)

Total annual electricity savings

The term total annual electricity savings means electricity savings during a specified calendar year from measures implemented 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 (h).

(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 and tribal renewable electricity and energy efficiency programs;

(2)

rely upon existing and emerging State, tribal, or regional tracking systems that issue and track non-Federal renewable electricity credits; and

(3)

cooperate with the States and Indian tribes to facilitate coordination between State, tribal, 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:

Calendar yearRequired annual percentage
20126.0
20136.0
20149.5
20159.5
201613.0
201713.0
201816.5
201916.5
202020.0
2021 through 203920.0
(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

(A) Except as provided in subparagraph (B), 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.

(B)

In the case of a central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), the Commission shall issue directly to the State Federal renewable electricity credits for any renewable electricity for which the State, pursuant to a mandate described in subsection (a)(7), has centrally procured credits or certificates issued based on generation of such renewable electricity.

(3)

Certain power sales contracts

Except as otherwise provided in paragraph (2), 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 qualified waste-to-energy

In the case of electricity generated from the combustion of any municipal solid waste or construction, demolition, or disaster debris that is included in the definition of renewable biomass, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, the Commission shall issue Federal renewable electricity credits only for electricity generated from qualified waste-to-energy.

(7)

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.

(8)

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.

(9)

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.

(10)

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.

(11)

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 documenting measurable and verifiable electricity savings achieved as a result of market transformation efforts;

(H)

include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measurable data on the amount of megawatt-hours displaced;

(I)

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

(J)

ensure that, except as provided in subparagraph (L), 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);

(K)

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;

(L)

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

(M)

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, or a central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b), 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 and paragraph (4), 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 (5) and with paragraph (4), where applicable. If the Commission determines at any time that a State is in substantial noncompliance with paragraph (3) or (5), or with paragraph (4), where applicable, 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)

Central procurement states

(A)

In general

A central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b) shall deposit any alternative compliance payments under this subsection in a unique fund in the State treasury created and used solely for this purpose.

(B)

Requirements

As a precondition of making alternative compliance payments under this subsection, a central procurement State shall certify to the Commission, in accordance with such requirements as the Commission may prescribe, that—

(i)

making such payments is the lowest cost alternative to meet the requirements of subsection (b); and

(ii)

moneys used by the State to make such payments are in addition to any spending that the State, and any separate entity charged with administering the State central procurement requirement identified under subsection (a)(7), otherwise collectively would direct to the purposes identified in paragraph (3).

(C)

Uses

A central procurement State that makes alternative compliance payments under this subsection shall certify to the Commission that, in using such payments in accordance with paragraph (3), it has, to the extent practicable, maximized the level of deployment of renewable electricity generation (measured in megawatt hours) and electricity savings per dollar that are achieved through such expenditures.

(5)

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 and demonstrating compliance with the requirements of this subsection.

(g)

Central procurement States

(1)

In general

A central procurement State may, upon submission of a written request by the Governor of such State to the Commission, assume responsibility for compliance with the requirements of subsection (b) on behalf of retail electric suppliers located in such State, exclusively with regard to the portion of such retail electric suppliers’ base amount that is sold within the State.

(2)

Demonstration of electricity savings

If a central procurement State opts to meet any part of the requirements of subsection (b) based on the achievement of demonstrated total annual electricity savings, regardless of whether such State has received delegated authority pursuant to subsection (f)(5), such State shall submit such demonstrated total annual electricity savings to the Commission through an annual report in accordance with requirements prescribed by the Commission by regulation, which shall be of equivalent stringency to those applicable to retail electric suppliers under subsection (f).

(3)

Noncompliance

If a central procurement State that pursuant to this subsection has assumed responsibility for compliance with the requirements of subsection (b), fails to satisfy the requirements of subsection (b) or (h) for any year, the State’s assumption of responsibility under this subsection shall be discontinued immediately, and retail electric suppliers located in such State henceforth shall be directly subject to the requirements of this section.

(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, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), fails to comply with the requirements of subsection (b) or (h), 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 (h)(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 (h).

(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, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), 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 (j), 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, a political subdivision of a State, or an Indian tribe 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, political subdivision, or Indian tribe, 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.

.

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.

.

103.

Federal renewable energy purchases

(a)

Requirement

For each of calendar years 2012 through 2039, the President shall ensure that, of the total amount of electricity Federal agencies consume in the United States during each calendar year, the following percentage shall be renewable electricity:

Calendar yearRequired annual percentage
20126.0
20136.0
20149.5
20159.5
201613.0
201713.0
201816.5
201916.5
202020.0
2021 through 203920.0
(b)

Definitions

For purposes of this section:

(1)

Renewable electricity

The term “renewable electricity” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).

(2)

Renewable energy resource

The term “renewable energy resource” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).

(c)

Modification of requirement

If the President determines that the Federal Government cannot feasibly meet the requirement established in subsection (a) in a specific calendar year, the President may, by written order, reduce such requirement for such calendar year to a percentage the President determines the Federal Government can feasibly meet.

(d)

Reports

Not later than April 1, 2013, and each year thereafter, the Secretary of Energy shall provide a report to Congress on the percentage of each Federal agency’s electricity consumption in the United States that was renewable electricity in the previous calendar year.

(e)

Contracts for renewable energy

(1)

Notwithstanding section 501(b)(1)(B) of title 40, United States Code, a contract for the acquisition of electricity generated from a renewable energy resource for the Federal Government may be made for a period of not more than 20 years.

(2)

Not later than 90 days after the date of enactment of this subsection, the Secretary of Energy, through the Federal Energy Management Program, shall publish a standardized renewable energy purchase agreement, setting forth commercial terms and conditions, that Federal agencies may use to acquire electricity generated from a renewable energy resource.

(3)

The Secretary of Energy shall provide technical assistance to assist Federal agencies in implementing this subsection.

B

Carbon Capture and Sequestration

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, the Secretary of the Interior, 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, tribal, or regional level;

(2)

identify regulatory implementation challenges, including those related to approval of State and tribal 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.

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:

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.

.

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 and tribal officials with environmental expertise, representatives of State and tribal Attorneys General, representatives from the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies, 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, including issues specific to Federal lands.

(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).

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, a municipality, and an Indian tribe.

(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 and tribal 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 typeRate of assessment per kilowatt hour
Coal$0.00043
Natural Gas$0.00022
Oil$0.00032.
(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).

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:

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

For an owner or operator of a project to be eligible to receive emission allowances under this section, the 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, tribal, 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, that receive allowances under this section.

(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 per ton.

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

(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)

The Administrator shall annually adjust for inflation the bonus allowance values established under this paragraph.

(d)

Phase II distribution to electric generating units

(1)

Application

This subsection shall apply only to the distribution of emission allowances for 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 distribute emission allowances 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 bonus allowance value that is bid by the entity shall be substituted for the bonus allowance values set forth in subsection (c)(3).

(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)(3)), 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 (B), 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(f) 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 emission allowances under this section, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.

(2)

If the Administrator determines that the emission 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 subsection (b)(1)(A)(ii) and (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 subsection (b)(1)(A)(ii) and (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. The limitation in the preceding sentence shall not apply to projects that meet the eligibility criteria in subsection (b)(1)(A)(iv)(I).

(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 emission 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 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.

.

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:

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.

.

C

Clean Transportation

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).

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.

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 the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles or batteries for such vehicles that are developed and produced in the United States.

(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.

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 section 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 section 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.

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.

126.

Definition of renewable biomass

(a)

In general

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

(I)

Renewable biomass

The term renewable biomass means any of the following:

(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 stands, late-successional stands (except for dead, severely damaged, or badly infested trees), 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.

(ii)

Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—

(I)

renewable plant material, including—

(aa)

feed grains;

(bb)

other agricultural commodities;

(cc)

other plants and trees; and

(dd)

algae; and

(II)

waste material, including—

(aa)

crop residue;

(bb)

other vegetative waste material (including wood waste and wood residues);

(cc)

animal waste and byproducts (including fats, oils, greases, and manure);

(dd)

construction waste;

(ee)

food waste and yard waste; and

(ff)

the non-fossil biogenic portion of municipal solid waste and construction, demolition, and disaster debris.

(iii)

Residues and byproducts from wood, pulp, or paper products facilities.

.

(b)

Reduction

The last sentence of section 211(o)(7)(D) of the Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to read as follows: For any calendar year in which the Administrator makes such a reduction, the Administrator shall also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same volume..

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:

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.

.

128.

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.;

(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.

; and

(4)

in section 797, by striking 2011 and inserting 2016.

129.

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.

.

130.

Fleet vehicles

Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended as follows:

(1)

By adding the following new paragraph at the end of subsection (a):

(6)

Repowered or converted alternative fueled vehicles

As used in this paragraph, the term repowered or converted alternative fueled vehicle includes light-, medium- or heavy-duty motor vehicles that have been modified with an EPA or CARB compliant engine or vehicle or aftermarket system so that the vehicle or engine is capable of operating on an alternative fuel.

.

(2)

By adding the following new paragraph at the end of subsection (b):

(3)

Repowered or converted vehicles. Not later than January 1, 2010, the Secretary shall allocate credits to fleets that repower or convert an existing vehicle so that it is capable of operating on an alternative fuel. In the case of any medium- or heavy-duty vehicle that is repowered or converted so that it is capable of operating on an alternative fuel, the Secretary shall allocate additional credits for such vehicles if he determines that such vehicles displace more petroleum than light duty alternative fueled vehicles. Such rules shall also include a requirement that such vehicles remain in the fleet for a period of no less than 2 years in order to continue to qualify for credit. The Secretary also shall extend the flexibility afforded in this paragraph to Federal fleets subject to the purchase provisions contained in section 303 of this Act.

.

130A.

Report on natural gas vehicle emissions reductions

Within 360 days after the date of enactment of this Act, the Administrator, in consultation with the Secretaries of Energy and Transportation, and the Administrator of the General Services Administration, and after an examination of available scientific studies or analysis, shall submit to the Congress a report on—

(1)

the contribution that light and heavy duty natural gas vehicles, by category and State, have made during the last decade to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act, and the reduced consumption of petroleum-based fuels;

(2)

the contribution that light and heavy duty natural gas vehicles are expected to make from 2010 to 2020 in reducing greenhouse gas and criteria pollutants under the Clean Air Act based, among other things, on additional Federal incentives for the manufacture and deployment of natural gas vehicles provided in this Act, and other Federal legislation; and

(3)

additional Federal measures, including legislation, that could, if implemented, maximize the potential for natural gas used in both stationary and mobile sources to contribute to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act.

D

State Energy and Environment Development Accounts

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 1 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.

132.

Support of State renewable energy and energy efficiency programs

(a)

Definitions

For purposes of this section:

(1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).

(2)

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.

(3)

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).

(4)

Vintage year

The term vintage year shall the meaning given that term in section 700 of the Clean Air Act (as added by section 311 of this Act).

(b)

Distribution among states

Not later than September 30 of each calendar year from 2011 through 2049, the Administrator shall, in accordance with this section, distribute allowances allocated pursuant to section 782(g)(1) of the Clean Air Act (as added by section 311 of this Act) for the following vintage year. The Administrator shall distribute 0.5 percent of such allowances pursuant to section 133 of this Act. The Administrator shall distribute the remaining 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 in accordance with the following requirements:

(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) and (3).

(2)

Not less than 20 percent shall be used exclusively for the following energy efficiency purposes, provided that not less than 1 percent shall be used for the purpose described in subparagraph (D) and not less than 5.5 percent shall be used for the purpose described in subparagraph (E):

(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)

Low-income community energy efficiency programs that are consistent with the grant program established under section 264 of this Act.

(E)

Implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to section 202.

(3)

Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, direct provision of allowances, 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.

(4)

The remaining 47.5 percent shall be used exclusively for any of the following purposes:

(A)

Energy efficiency purposes described in paragraph (2).

(B)

Renewable energy purposes described in paragraph (3)(B) and (C).

(C)

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.

(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)

Providing the non-Federal share of support for surface transportation capital projects under—

(i)

sections 5307, 5308, 5309, 5310, 5311 and 5319 of title 49, United States Code; and

(ii)

sections 142, 146, and 149 of title 23, United States Code,

provided that not more than 10 percent of allowances distributed to each State pursuant to this section shall be used for such purpose.
(5)

For any allowances used for the purpose described in paragraph (4)(C), the State shall—

(A)

prioritize expansion of existing energy efficiency programs approved and overseen by the State or the appropriate State regulatory authority; and

(B)

demonstrate that such allowances have been used to supplement, and not to supplant, existing and otherwise available State, local, and ratepayer funding for such purpose.

(d)

Reporting

Each State receiving 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, including entities receiving such allowances or allowance value from units of local government pursuant to subsection (c)(1);

(2)

the amount and nature of allowances or allowance value received by each such recipient;

(3)

the specific purposes for which such allowances or allowance value was conveyed to each such recipient;

(4)

documentation of the amount of energy savings, emission reductions, renewable energy deployment, and new or retooled manufacturing capacity resulting from the use of such allowances or allowance value; and

(5)

for any energy efficiency program supported under subsection (c)(4)(C)—

(A)

an assessment demonstrating the cost-effectiveness of such program; and

(B)

a demonstration that the requirements set forth in subsection (c)(5) have been satisfied.

(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).

133.

Support of Indian renewable energy and energy efficiency programs

(a)

Definitions

For purposes of this section:

(1)

Allowance; cost-effective; renewable energy resource

The terms allowance, cost-effective, and renewable energy resource have the meaning given those terms in section 132 of this Act.

(2)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25. U.S.C. 450b).

(3)

Secretary

The term Secretary means the Secretary of Energy.

(b)

Establishment

Not later than 18 months after the date of enactment of this Act, the Secretary shall, in consultation with the Administrator and the Secretary of the Interior, promulgate regulations establishing a program to distribute allowances to Indian tribes on a competitive basis for the following purposes:

(1)

Energy efficiency

Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane.

(2)

Renewable energy

Deployment of technologies to generate electricity from renewable energy resources.

(c)

Requirements

The regulations promulgated pursuant to subsection (b) shall prescribe design elements and requirements of the program established under this section, including—

(1)

objective criteria for evaluating proposals submitted by Indian tribes, and for selecting projects and programs to receive support, under this section;

(2)

reporting requirements for Indian tribes that receive allowances under this section; and

(3)

other appropriate elements and requirements.

(d)

Distribution

The Administrator shall, at the direction of the Secretary, distribute to Indian tribes allowances that are set aside, pursuant to section 132, for use under this section.

E

Smart Grid Advancement

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—

(A)

diminishing the end-use requirements for electricity;

(B)

use of locally stored energy 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; or

(C)

energy savings from efficient operation of the distribution grid resulting from the use of a Smart Grid.

(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).

142.

Assessment of Smart Grid cost effectiveness in products

(a)

Assessment

Within 1 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.

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 1 year 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).

.

144.

Smart Grid peak demand reduction goals

(a)

Goals

Not later than 1 year after the date of enactment of this section, each load-serving entity, or, at the option of the State, each State with respect to load-serving entities that the State regulates, 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, but not later than 180 days after enactment of this section, 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, tribal, or regional entity, by that State, tribal, 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—

(A)

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); and

(B)

the relative economics of peak demand reduction and generation required to meet peak demand shall be evaluated in a neutral and objective manner.

(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—

(A)

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; or

(B)

use of a Smart Grid.

(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 or energy 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 or energy 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 or with a third party pursuant to such agreements.

(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 energy storage, use of distributed generation, or the regulation of load-serving entities. The Commission, in consultation with States and Indian tribes having such peak management, demand response and distributed energy storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State and tribal 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 1 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, Indian tribes 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 and funding

(1)

Assistance to States and tribes

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 or to the tribes 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.

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.

.

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.

.

F

Transmission Planning

151.

Transmission planning and siting

(a)

In general

Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended as follows:

(1)

In subsection (b), in paragraph (5), by striking ; and and inserting a semicolon, in paragraph (6) by striking the period and inserting ; and and by adding the following at the end thereof:

(7)

the facility is interstate in nature or is an intrastate segment integral to a proposed interstate facility;

.

(2)

In subsection (k), by inserting at the end the following: Subsections (a), (b), (c), and (h) of this section shall not apply in the Western interconnection..

(3)

In subsections (d) and (e), by striking subsection (b) in each place and inserting subsection (b) or section 216B, and by striking permit and inserting permit or certificate in each place it appears.

(b)

New sections

The Federal Power Act (16 U.S.C. 824p) is amended by inserting the following new sections after section 216:

216A.

Transmission planning

(a)

Federal policy for transmission planning

(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 and low-carbon energy sources for generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, minimizing environmental harm, and providing for cost-effective electricity services throughout the United States, in addition to serving the objectives stated in section 217(b)(4).

(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 result from an open, inclusive and transparent process, taking 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, tribal, or Federal law or regulation, including States, Indian tribes, entities designated by States and Indian tribes, Federal Power Marketing Administrations, 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, Indian tribes, Federal land management agencies, State energy, environment, natural resources, and land management agencies and commissions, Federal power marketing administrations, electric utilities, transmission providers, load-serving entities, transmission operators, regional transmission organizations, independent system 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, but in a manner that, to the extent feasible, avoids uncoordinated planning by more than one planning entity for the same area.

(4)

Relation to existing planning policy

In implementing the Federal policy established under subsection (a), the Commission shall—

(A)

incorporate and coordinate with any ongoing planning efforts undertaken pursuant to section 217 and Commission Order No. 890;

(B)

coordinate with the Secretary of Energy in providing to the regional planning entities an annual summary of national energy policy priorities and goals;

(C)

coordinate with corridor designation and planning functions carried out pursuant to section 216 by the Secretary of Energy, who shall provide financial support from available funds to support the purposes of this section; and

(D)

coordinate with the Secretaries of the Interior and Agriculture and Indian tribes in carrying out the Secretaries’ or tribal governments’ existing responsibilities for the planning or siting of transmission facilities on Federal or tribal lands, consistent with law, policy, and regulations relating to the management of federal public lands.

(5)

Assistance

(A)

In general

The Commission shall provide support to and may participate if invited to do so in the regional grid planning processes conducted by regional planning entities. The Secretary of Energy and 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), with updates to such plans not less than every 3 years thereafter. 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.

(8)

Integration of plans

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. In no case shall a multi-regional plan impose inclusion of a facility on a region that has submitted a valid plan that, after efforts to resolve the conflict, does not include such facility. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission’s Web site.

(9)

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.

(10)

Report to congress

Not later than 3 years after the date of enactment of this section and each 3 years thereafter, the Commission shall provide a report to Congress containing the results of the regional grid planning process, including summaries of the adopted regional plans and the extent to which the Federal policy objectives in subsection (a) have been successfully achieved. 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, tribal, and Federal authority.

216B.

Siting and construction in the Western Interconnection

(a)

Applicability

This section applies only to States located in the Western Interconnection and does not apply to States located in the Eastern Interconnection, to the States of Alaska or Hawaii, or to ERCOT.

(b)

Certificate of public convenience and necessity

The Commission may, after notice and opportunity for hearing, issue a certificate of public convenience and necessity for the construction or modification of a transmission facility if the Commission finds that—

(1)

the facility was identified and included in one or more relevant and final regional or interconnection-wide electric grid plans submitted to the Commission pursuant to subsection (b) of 216A;

(2)

any conflict among regional electric grid plans concerning the need for the facility was resolved;

(3)

such relevant regional electric grid plans are consistent with the national grid planning principles adopted by the Commission pursuant to subsection (b);

(4)

the facility was identified as needed in significant measure to meet demand for renewable energy in such plans;

(5)

the facility is a multistate facility;

(6)

the developer of such facility filed a complete application seeking approval for the siting of the facility with a state commission or other entity that has authority to approve the siting of the facility;

(7)

a State commission or other entity that has authority to approve the siting of the facility—

(A)

did not issue a decision on an application seeking approval for the siting of the facility within 1 year after the date the applicant submitted a completed application to the State;

(B)

denied a complete application seeking approval for the siting of the facility; or

(C)

authorized the siting of the facility subject to conditions that unreasonably interfere with the development of the facility; and

(8)

the siting of the facility can be accomplished in a manner consistent with the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A.

(c)

State recommendations on resource protection

In issuing a final certificate of public convenience and necessity pursuant to subsection (b), the Commission shall—

(1)

consider any siting constraints and mitigation measures based on habitat protection, health and safety considerations, environmental considerations, or cultural site protection identified by relevant State or local authorities; and

(2)

incorporate those identified siting constraints or mitigation measures, including recommendations related to project routing, as conditions in the final certificate of public convenience and necessity, or if the Commission determines that a recommended siting constraint or mitigation measure is infeasible, excessively costly, or inconsistent with the Federal policy established in subsection (a) of section 216A or the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A—

(A)

consult with State regulatory agencies to seek to resolve the issue;

(B)

incorporate as conditions on the certificate such recommended siting constraints or mitigation measures as are determined to be appropriate by the Commission, based on consultation by the Commission with State regulatory agencies, the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b)of section 216A, and the record before the Commission; and

(C)

if, after consultation, the Commission does not adopt in whole or in part a recommendation of an agency, publish a finding that the adoption of the recommendation is infeasible, not cost effective, or inconsistent with this section or other applicable provisions of law.

(d)

Certificate applications

(1)

An application for a preliminary or final certificate of public convenience and necessity under this subsection shall be made in writing to the Commission.

(2)

The Commission shall issue rules specifying—

(A)

the form of the application;

(B)

the information to be contained in the application; and

(C)

the manner of service of notice of the application on interested persons.

(e)

Coordination of Federal authorizations for transmission facilities

(1)

In this subsection, the term Federal authorization shall have the same meaning and include the same actions as in section 216(h).

(2)

The Federal Energy Regulatory Commission shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews of the facility, provided, however, that to the extent the facility is proposed to be sited on Federal lands, the Department of the Interior will assume such lead-agency duties as agreed between the Commission and the Department of Interior.

(3)

To the maximum extent practicable under applicable Federal law, the Commission, and to the extent agreed, the Secretary of Interior, shall coordinate the Federal authorization and review process under this subsection with any Indian tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.

(4)
(A)

As head of the lead agency, the Chairman of the Commission, in consultation with the Secretary of Interior and with those entities referred to in paragraph (3) that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed facility.

(B)

The Chairman of the Commission, or the Secretary of Interior, as agreed under paragraph (2), shall ensure that, once an application has been submitted with such data as the lead agency considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed—

(i)

within 1 year; or

(ii)

if a requirement of another provision of Federal law does not permit compliance with clause (i), as soon thereafter as is practicable.

(C)

The Commission shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning—

(i)

the likelihood of approval for a potential facility; and

(ii)

key issues of concern to the agencies and public.

(5)
(A)

As lead agency head, the Chairman of the Commission, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed project under Federal law.

(B)

The Chairman of the Commission and the heads of other agencies shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act (43 U.S.C. 1763) by fully taking into account prior analyses and decisions relating to the corridors.

(C)

The document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law.

(6)
(A)

If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the deadline established by the Commission pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application.

(B)

Based on the overall record and in consultation with the affected agency, the President may—

(i)

issue the necessary authorization with any appropriate conditions; or

(ii)

deny the application.

(C)

The President shall issue a decision not later than 90 days after the date of the filing of the appeal.

(D)

In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of—

(i)

the National Forest Management Act of 1976 (16 U.S.C. 472a et seq.);

(ii)

the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);

(iii)

the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);

(iv)

the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

(v)

the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.).

(7)
(A)

Not later than 18 months after August 8, 2005, the Commission or, as requested, the Secretary or Interior, shall issue any regulations necessary to implement this subsection.

(B)
(i)

Not later than 1 year after August 8, 2005, the Commission, the Secretary of Interior, and the heads of all Federal agencies with authority to issue Federal authorizations shall enter into a memorandum of understanding to ensure the timely and coordinated review and permitting of electricity transmission facilities.

(ii)

Interested Indian tribes, multistate entities, and State agencies may enter the memorandum of understanding.

(C)

The head of each Federal agency with authority to issue a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to ensure, full implementation of the regulations and memorandum required under this paragraph.

(8)
(A)

Each Federal land use authorization for an electricity transmission facility shall be issued—

(i)

for a duration, as determined by the Secretary of Interior, commensurate with the anticipated use of the facility; and

(ii)

with appropriate authority to manage the right-of-way for reliability and environmental protection.

(B)

On the expiration of the authorization (including an authorization issued before August 8, 2005), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land.

(9)

In exercising the responsibilities under this section, the Commission shall consult regularly with—

(A)

electric reliability organizations (including related regional entities) approved by the Commission; and

(B)

Transmission Organizations approved by the Commission.

.

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.

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.

G

Technical Corrections to Energy Laws

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 TypeNominal Lamp WattageMinimum CRIMinimum Average Lamp Efficacy (LPW)Effective Date (Period of Months)
4-foot medium bi-pin>35 W6975.036
≤35 W4575.0 36
2-foot U-shaped>35 W6968.0 36
≤35 W4564.0 36
8-foot slimline 65 W6980.0 18
≤65 W4580.0 18
8-foot high output>100 W6980.0 18
≤100 W4580.0 18
INCANDESCENT REFLECTOR LAMPS
Nominal Lamp WattageMinimum Average Lamp Efficacy (LPW)Effective Date (Period of Months)
 40–5010.536
 51–6611.036
 67–8512.536
 86–11514.036
116–15514.536
156–20515.036
GENERAL SERVICE INCANDESCENT LAMPS
Rated Lumen RangesMaximum Rated WattageMinimum Rated LifetimeEffective Date
1490–2600721,000 hrs1/1/2012
1050–1489531,000 hrs1/1/2013
750–1049431,000 hrs1/1/2014
310–749291,000 hrs1/1/2014
MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
Rated Lumen RangesMaximum Rated WattageMinimum Rated LifetimeEffective Date
1118–1950721,000 hrs1/1/2012
788–1117531,000 hrs1/1/2013
563–787431,000 hrs1/1/2014
232–562291,000 hrs1/1/2014
(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).

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).

H

Energy and Efficiency Centers and Research

171.

Energy Innovation Hubs

(a)

Purpose

The Secretary shall carry out a program to establish Energy Innovation Hubs to enhance the Nation’s economic, environmental, and energy security by promoting commercial application 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 the development and commercial application of 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 (as added by section 311 of this Act).

(2)

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.

(3)

Cluster

The term cluster means a network of entities 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.

(4)

Hub

The term Hub means an Energy Innovation Hub established in accordance with this section.

(5)

Project

The term project means an activity with respect to which a Hub provides support under subsection (e).

(6)

Qualifying entity

The term qualifying entity means each of the following:

(A)

A research university.

(B)

A State or Federal 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 development focus

The term technology development focus means the unique technology development areas in which a Hub 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 development areas designated by the Secretary.

(9)

Translational research

The term translational research means coordination of basic or applied research with technical and commercial applications to enable promising discoveries or inventions to attract investment sufficient for market penetration and diffusion.

(10)

Vintage year

The term vintage year has the meaning given that term in section 700 of the Clean Air Act (as added by section 312 of this Act).

(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 allocated under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act) to support the establishment of 8 Hubs, each with a unique designated technology development focus, pursuant to this section;

(3)

coordinate the innovation activities of Hubs with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research Projects Agency—Energy, and Energy Frontier Research Collaborations, and within industry, including 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)

Entities eligible for support

A consortium shall be eligible to receive allowances to support the establishment of a Hub 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)

1 or more additional qualifying entities;

(2)

its members have established a binding agreement that documents—

(A)

the structure of the partnership agreement;

(B)

a 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 of Energy and can be audited under subsection (f)(5); 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 to support project awards pursuant to subsection (e);

(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)

Energy innovation hubs

(1)

Role

Hubs receiving allowances under this section shall support translational research activities leading to commercial application of clean energy technologies, in accordance with the purposes of this section, through issuance of awards to projects managed by qualifying entities and other entities meeting the Hub’s project criteria, including national laboratories. Each such Hub shall—

(A)

develop and publish for public review and comment proposed plans, programs, project selection criteria, and terms for individual project awards under this subsection;

(B)

submit an annual report to the Secretary summarizing the Hub’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 Hub awards and other forms of technology support that encourage individual ingenuity and invention while speeding technology transfer and facilitating the establishment of rapid commercialization pathways;

(ii)

to prevent resources provided to the Hub from being used to displace private sector investment otherwise likely to occur, including investment from private sector entities that 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 Hub; and

(iv)

to facilitate the participation of entrepreneurs with a demonstrated history of developing and commercializing clean energy technologies;

(D)

oversee project solicitations, review proposed projects, and select projects for awards; and

(E)

monitor project implementation.

(2)

Distribution of awards by hubs

A Hub shall distribute awards under this subsection to support clean energy technology projects conducting translational research and related activities, provided that at least 50 percent of such support shall be provided to projects related to the Hub’s technology development focus.

(3)

Advisory boards

(A)

In general

Each Hub shall establish an Advisory Board, the members of which shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. The Advisory Board shall review the Hub’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 Hub. Advisory Board members other than those representing consortium members shall serve for no more than 3 years. All Advisory Board members shall comply with the Hub’s conflict of interest policies and procedures.

(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;

(iii)

2 members selected at large by other Advisory Board members to represent the entrepreneur and venture capital communities; and

(iv)

1 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

Hubs shall establish procedures to ensure that any employee or consortia designee for Hub activities who serves in a decisionmaking capacity shall—

(i)

disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under this subsection, 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 Hub or awards provided under this subsection, if cognizant officials of the Hub fail to comply with procedures required under subparagraph (A).

(f)

Distribution of allowances to energy innovation hubs

(1)

Distribution of allowances

Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Secretary shall, in accordance with the requirements of this section, distribute to eligible consortia allowances allocated for the following vintage year under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act). Not less than 10 percent and not more than 30 percent of the allowances available for distribution in any given year shall be distributed to support any individual Hub under this section.

(2)

Selection and schedule

Allowances to support the establishment of a Hub shall be distributed to eligible consortia (as defined in subsection (d)) selected 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 Hubs, 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. For at least 3 awards to consortia under this section, the Secretary shall give special consideration to applications in which 1 or more of the institutions under subsection (d)(1)(A) are 1890 Land Grant Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7061)), Predominantly Black Institutions (as defined in section 318 of the Higher Education Act of 1965 (20 U.S.C. 1059e)), Tribal Colleges or Universities (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)), or Hispanic Serving Institutions (as defined in section 318 of the Higher Education Act of 1965 (20 U.S.C. 1059e)).

(3)

Amount and term of awards

For each Hub selected to receive an award under this subsection, the Secretary shall define a quantity of allowances that shall be distributed to such Hub each year for an initial period not to exceed 5 years. The Secretary may extend the term of such award by up to 5 additional years, and a Hub may compete to receive an increase in the quantity of allowances per year that it shall receive during any such extension. A Hub shall be eligible to compete for a new award after the expiration of the term of any award, including any extension of such term, under this subsection.

(4)

Use of allowances

Allowances distributed under this section shall be used exclusively to support project awards pursuant to subsection (e)(1) and (2), provided that a Hub may use not more than 10 percent of the value of such allowances for its administrative expenses related to making such awards. Allowances distributed under this section shall not be used for construction of new buildings or facilities for Hubs, and construction of new buildings or facilities shall not be considered as part of the non-Federal share of a cost sharing agreement under this section.

(5)

Audit

Each Hub shall conduct, in accordance with such requirements as the Secretary may prescribe, an annual audit to determine the extent to which allowances distributed to the Hub under this subsection, 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 an 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 Hub to ensure that allowances distributed to the Hub under this subsection, and awards made under subsection (e), have been utilized in a manner consistent with this section.

(6)

Revocation of allowances

The Secretary shall have authority to review awards made under this subsection and to revoke such awards if the Secretary determines that a Hub has used the award in a manner not consistent with the requirements of this section.

172.

Advanced energy research

(a)

Definitions

For purposes of this section:

(1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).

(2)

Director

The term Director means Director of the Advanced Research Projects Agency-Energy.

(b)

In general

Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Director shall distribute allowances allocated for the following vintage year under section 782(h)(2) of the Clean Air Act (as added by section 321 of this Act). Such allowances shall be distributed on a competitive basis to institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to achieve the goals of the Advanced Research Projects Agency-Energy (as described in section 5012(c) of the America COMPETES Act) through targeted acceleration of—

(1)

novel early-stage energy research with possible technology applications;

(2)

development of techniques, processes, and technologies, and related testing and evaluation;

(3)

development of manufacturing processes for technologies; and

(4)

demonstration and coordination with nongovernmental entities for commercial applications of technologies and research applications.

(c)

Responsibilities

The Director shall be responsible for assessing the success of programs and terminating programs carried out under this section that are not achieving the goals of the programs, consistent with 5012(e)(2) and (4) of the America COMPETES Act. The Director shall designate program managers whose responsibilities are consistent with 5012(f)(1)(B) of the America COMPETES Act. The Director’s reporting and coordination requirements established through 5012(g) and (h) of the America COMPETES Act shall apply to activities funded through this section.

(d)

Supplement not supplant

Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out activities described in this section.

173.

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 174.

(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.

174.

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 173.

(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 174 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 174 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.

175.

High efficiency gas turbine research, development, and demonstration

(a)

In general

The Secretary of Energy shall carry out a multiyear, multiphase program of research, development, and technology demonstration to improve the efficiency of gas turbines used in combined cycle power generation systems and to identify the technologies that ultimately will lead to gas turbine combined cycle efficiency of 65 percent.

(b)

Program elements

The program under this section shall—

(1)

support first-of-a-kind engineering and detailed gas turbine design for utility-scale electric power generation, including—

(A)

high temperature materials, including superalloys, coatings, and ceramics;

(B)

improved heat transfer capability;

(C)

manufacturing technology required to construct complex three-dimensional geometry parts with improved aerodynamic capability;

(D)

combustion technology to produce higher firing temperature while lowering nitrogen oxide and carbon monoxide emissions per unit of output;

(E)

advanced controls and systems integration;

(F)

advanced high performance compressor technology; and

(G)

validation facilities for the testing of components and subsystems;

(2)

include technology demonstration through component testing, subscale testing, and full scale testing in existing fleets;

(3)

include field demonstrations of the developed technology elements so as to demonstrate technical and economic feasibility; and

(4)

assess overall combined cycle system performance.

(c)

Program goals

The goals of the multiphase program established under subsection (a) shall be—

(1)

in phase I—

(A)

to develop the conceptual design of advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and

(B)

to develop and demonstrate the technology required for advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and

(2)

in phase II, to develop the conceptual design for advanced high efficiency gas turbines that can achieve at least 65 percent combined cycle efficiency on a lower heating value basis.

(d)

Proposals

Within 180 days after the date of enactment of this section, the Secretary shall solicit proposals for conducting activities under this section. In selecting proposals, the Secretary shall emphasize—

(1)

the extent to which the proposal will stimulate the creation or increased retention of jobs in the United States; and

(2)

the extent to which the proposal will promote and enhance United States technology leadership.

(e)

Cost sharing

Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to an award of financial assistance made under this section.

(f)

Limits on participation

The limits on participation applicable under section 999E of the Energy Policy Act of 2005 (42 U.S.C. 16375) shall apply to financial assistance awarded under this section.

(g)

Authorization of appropriations

There are authorized to be appropriated to the Secretary for carrying out this section $65,000,000 for each of fiscal years 2011 through 2014.

I

Nuclear and Advanced Technologies

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.

.

(e)

Subrogation

Section 1702(g)(2) of the Energy Policy Act of 2005 (42 U.S.C. 16512(g)(2)) is amended by striking subparagraphs (B) and (C) and inserting the following:

(B)

Superiority of rights

Except as provided in subparagraph (C), the rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.

(C)

Terms and conditions

A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to—

(i)

protect the financial interests of the United States in the case of default;

(ii)

have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project;

(iii)

provide for sharing the proceeds received from the sale of project assets with other creditors or control the disposition of project assets if necessary to protect the financial interests of the United States in the case of default; and

(iv)

provide such lien priority in project assets as necessary to protect the financial interests of the United States in the case of a default.

.

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.

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 at affordable rates 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)

Green bonds

The term Green Bonds means bonds issued pursuant to section 184.

(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.

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.

(3)

Cash flows

Cash flows associated with costs of the Fund described in section 502(5)(B) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)) shall be transferred to appropriate credit accounts.

(e)

Green bonds

(1)

Initial capitalization

The Secretary of the Treasury shall issue Green Bonds in the amount of $7,500,000,000 on the credit of the United States to acquire capital stock of the Administration. Stock certificates evidencing ownership in the Administration shall be issued by the Administration to the Secretary of the Treasury, to the extent of payments made for the capital stock of the Administration.

(2)

Denominations and maturity

Green Bonds shall be in such forms and denominations, and shall mature within such periods, as determined by the Secretary of the Treasury.

(3)

Interest

Green Bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary of the Treasury.

(4)

Lawful investments

Green Bonds shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.

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 recommended 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;

(11)

sufficient availability of financial services and support to small businesses developing and deploying clean energy technologies through partnerships with private entities that have relevant credit expertise; and

(12)

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.

186.

Clean energy deployment administration

(a)

Establishment

(1)

Establishment of corporation

There is established a corporation to be known as the Clean Energy Deployment Administration that shall be wholly owned by the United States.

(2)

Independent corporation

The Administration shall be an independent corporation. Neither the Administration nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress provides otherwise.

(3)

Charter

The Administration shall be chartered for 20 years from the date of enactment of this section.

(4)

Status

(A)

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 national capital region; 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 prevailing rate for compensation for similar positions in industry.

(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 member of the Board of Directors;

(B)

the Secretary of the Treasury or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;

(C)

the Secretary of the Interior or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;

(D)

the Secretary of Agriculture or the designee of the Secretary, who shall serve as an ex officio member of the Board of Directors;

(E)

the Administrator of the Administration, who shall serve as the Chairman of the Board of Directors; and

(F)

4 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.

(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 the prevailing rate for compensation for similar positions in industry.

(d)

Energy technology advisory council

(1)

In general

The Administration shall have an Energy Technology Advisory Council consisting of 8 members selected by the Board of Directors of the Administration.

(2)

Qualifications

The members of the Advisory Council shall—

(A)

have clean energy project development, clean energy finance, commercial, and/or relevant scientific expertise; and

(B)

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 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.

(f)

Conflicts of interest

No director, officer, attorney, agent, or employee of the Administration shall in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting such individual’s personal interests, or the interests of any corporation, partnership, or association in which such individual is directly or indirectly personally interested.

(g)

Sunset

(1)

Expiration of charter

The Administration shall continue to exercise its functions until all obligations and commitments of the Administration are discharged, even after its charter has expired.

(2)

Prior obligations

No provisions of this subsection shall be construed as preventing the Administration from—

(A)

undertaking obligations prior to the date of the expiration of its charter which mature subsequent to such date;

(B)

assuming, prior to the date of the expiration of its charter, liability as guarantor, endorser, or acceptor of obligations which mature subsequent to such date; or

(C)

continuing as a corporation and exercising any of its functions subsequent to the date of the expiration of its charter for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the Administration.

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 and the Committee on Finance of the Senate, and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report describing the results of the review and any recommended policy changes.

(5)

Federal cost share

Direct loans, letters of credit and loan guarantees 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 loan, letter of credit or loan guarantee, as estimated at the time at which the loan, letter of credit or loan 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.

(f)

Limitations

(1)

The Administration shall not provide direct support as defined under this section or indirect support as defined under section 188 to an individual clean energy technology project that obtained a loan guarantee under title XVII of the Energy Policy Act of 2005.

(2)

No direct or indirect support provided by the Administration may be used to pay any part of the cost of an obligation or a loan guarantee under title XVII of the Energy Policy Act of 2005.

188.

Indirect support

(a)

In general

For the purpose of enhancing the availability of private financing for clean energy technology deployment, the Administration may—

(1)

provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable owners and users of buildings and industrial facilities to—

(A)

significantly increase the energy efficiency of such buildings or facilities; or

(B)

install systems that individually generate electricity from renewable energy resources and have a capacity of no more than 2 megawatts;

(2)

facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by state, local, and non-governmental not-for-profit entities, to the degree and extent that the Administration determines such financing activity is appropriate and consistent with carrying out the purposes described in Section 182 of this Act; and

(3)

provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable the deployment of energy storage applications for electric drive vehicles, stationary applications, and electricity transmission and distribution.

(b)

Definitions

For purposes of the section:

(1)

Credit support

The term credit support means—

(A)

direct loans, letters of credit, loan guarantees, and insurance products; and

(B)

the purchase or commitment to purchase, or the sale or commitment to sell, debt instruments (including subordinated securities).

(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).

(c)

Transparency

The Administration shall seek to foster through its credit support activities—

(1)

the development and consistent application of standard contractual terms, transparent underwriting standards and consistent measurement and verification protocols, as applicable; and

(2)

the creation of performance data that promotes effective underwriting and risk management to support lending markets and stimulate the development of private investment markets.

(d)

Exempt securities

All securities insured or guaranteed by the Administration shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to the principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.

189.

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 exclusively out of the Fund or the associated credit account, as appropriate.

(2)

Security

Subject to paragraph (1), 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.

190.

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)

Financial matters

(1)

Investments

Funds of the Administration may be invested in such investments as the Board of Directors may prescribe. Earnings from such funds, other than fees collected under section 189, may be spent by the Administration only to such extent or in such amounts as are provided in advance by appropriation Acts.

(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.

(d)

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 and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means 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 and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House 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 and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House 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)

Spending safeguards and reporting

(1)

In general

The Administrator—

(A)

shall require any entity receiving financing support from the Administration to report quarterly, in a format specified by the Administrator, on such entity’s use of such support and its progress fulfilling the objectives for which such support was granted, and the Administrator shall make these reports available to the public;

(B)

may establish additional reporting and information requirements for any recipient of financing support from the Administration;

(C)

shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any financing support from the Administration;

(D)

shall create and maintain a fully searchable database, accessible on the Internet (or successor protocol) at no cost to the public, that contains at least—

(i)

a list of each entity that has applied for financing support;

(ii)

a description of each application;

(iii)

the status of each such application;

(iv)

the name of each entity receiving financing support;

(v)

the purpose for which such entity is receiving such financing support;

(vi)

each quarterly report submitted by the entity pursuant to this section; and

(vii)

such other information sufficient to allow the public to understand and monitor the financial support provided by the Administration;

(E)

shall make all financing transactions available for public inspection, including formal annual reviews by both a private auditor and the Comptroller General; and

(F)

shall at all times be available to receive public comment in writing on the activities of the Administration.

(2)

Protection of confidential business information

To the extent necessary and appropriate, the Administrator may redact any information regarding applicants and borrowers to protect confidential business information.

191.

Conforming amendments

(a)

Tax exempt status

Subsection (l) of section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(4)

The Clean Energy Deployment Administration established under section 186 of the American Clean Energy and Security Act of 2009.

.

(b)

Wholly owned government corporation

Paragraph (3) of section 9101 of title 31, United States Code, is amended by adding at the end the following:

(S)

the Clean Energy Deployment Administration.

.

J

Miscellaneous

195.

Increased hydroelectric generation at existing Federal facilities

(a)

In general

The Secretary of the Interior, the Secretary of Energy, and the Secretary of the Army shall jointly update the study of the potential for increasing electric power production capability at federally owned or operated water regulation, storage, and conveyance facilities required in section 1834 of the Energy Policy Act of 2005.

(b)

Content

The update under this section shall include identification and description in detail of each facility that is capable, with or without modification, of producing additional hydroelectric power, including estimation of the existing potential for the facility to generate hydroelectric power.

(c)

Report

The Secretaries shall submit to the Committees on Energy and Commerce, Natural Resources, and Transportation and Infrastructure of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the findings, conclusions, and recommendations of the update of the study under this section by not later than 12 months after the date of enactment of this Act. The report shall include each of the following:

(1)

The identifications, descriptions, and estimations referred to in subsection (b).

(2)

A description of activities currently conducted or considered, or that could be considered, to produce additional hydroelectric power from each identified facility.

(3)

A summary of prior actions taken by the Secretaries to produce additional hydroelectric power from each identified facility.

(4)

The costs to install, upgrade, or modify equipment or take other actions to produce additional hydroelectric power from each identified facility, and the level of Federal power customer involvement in the determination of such costs.

(5)

The benefits that would be achieved by such installation, upgrade, modification, or other action, including quantified estimates of any additional energy or capacity from each facility identified under subsection (b).

(6)

A description of actions that are planned, underway, or might reasonably be considered to increase hydroelectric power production by replacing turbine runners, by performing generator upgrades or rewinds, or by construction of pumped storage facilities.

(7)

The impact of increased hydroelectric power production on irrigation, water supply, fish, wildlife, Indian tribes, river health, water quality, navigation, recreation, fishing, and flood control.

(8)

Any additional recommendations to increase hydroelectric power production from, and reduce costs and improve efficiency at, federally owned or operated water regulation, storage, and conveyance facilities.

196.

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, including minority-owned and woman-owned, 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.

197.

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.

198.

Office of Consumer Advocacy

Section 319 of the Federal Power Act is amended to read as follows:

319.

Office of Consumer Advocacy

(a)

Office

(1)

Establishment

There is established within the Commission an Office of Consumer Advocacy to serve as an advocate for the public interest. The Office of Administrative Litigation within the Commission shall be incorporated into the Office of Consumer Advocacy.

(2)

Director

The Office shall be headed by a Director to be appointed by the President by and with the advice and consent of the Senate from among individuals who are licensed attorneys admitted to the Bar of any State or of the District of Columbia and who have experience in public utility proceedings.

(3)

Duties

The Office may—

(A)

represent the interests of energy customers—

(i)

on matters before the Commission concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;

(ii)

as amicus curiae, in the review in the courts of the United States of rulings by the Commission in such matters; and

(iii)

as amicus, in hearings and proceedings in other Federal regulatory agencies and commissions related to such matters;

(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 shall be compensated at Level IV of the Executive Schedule. The Director may—

(A)

employ not more than 25 full-time professional employees at appropriate levels in the GS Scale and such additional support personnel as required; and

(B)

procure temporary and intermittent services as needed.

(5)

Information from other Federal agencies

The Director may request, from any department, agency, or instrumentality of the United States such information as he deems necessary to carry out his functions under this section. Upon such request, the head of the department, agency, or instrumentality concerned shall, to the extent practicable and authorized by law, provide such information to the Office.

(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 the 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 for which the Office exists.

(c)

Definitions

(1)

Energy customer

The term energy customer means a residential customer or a small commercial customer that receives products or services directly or indirectly from a public utility or natural gas company under the jurisdiction of the Commission.

(2)

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)).

(3)

Office

The term Office means the Office of Consumer Advocacy established under this section.

(4)

Public utility

The term public utility has the meaning given the term in section 201(e) of this Act.

(5)

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 to be appropriated such sums as necessary to carry out this section.

(e)

Savings clause

Nothing in this section affects the rights or obligations of any State utility consumer advocate.

.

199.

Development corporation for renewable power borrowing authority

(a)

Determination

No later than 6 months after the date of enactment of this Act, the Secretary of Energy, in coordination with the Secretary of Commerce, shall—

(1)

determine any geographic area within the contiguous United States that lacks a Federal power marketing agency;

(2)

develop a plan or criteria for the geographic areas identified in paragraph (1) regarding investment in renewable energy and associated infrastructure within an area identified in paragraph (1); and

(3)

identify any Federal agency within an area in paragraph (1) that has, or could develop, the ability to facilitate the investment in paragraph (2).

(b)

Report

The Secretary of Energy, in coordination with the Secretary of Commerce, shall provide the determinations made under subsection (a) to the Committee on Energy and Commerce of the House of Representatives.

(c)

Establishment

Based upon the determinations made pursuant to subsection (a), the Secretary of Energy, in coordination with the Secretary of Commerce, shall recommend to the Committee on Energy and Commerce of the House of Representatives the establishment of any new Federal lending authority, including authorization of additional lending authority for existing Federal agencies, not to exceed $3,500,000,000 per geographic area identified in subsection (a)(1).

(d)

Authorization

$25,000,000 is authorized to be appropriated for fiscal year 2010 to carry out the provisions of this section.

199A.

Study

Not later than February 1, 2011, the Secretary of Energy shall transmit to the Congress a report showing the results of a study on the use of thorium-fueled nuclear reactors for national energy needs. Such report shall include a response to the International Atomic Energy Agency study entitled Thorium fuel cycle - Potential benefits and challenges (IAEA–TECDOC–1450).

II

Energy Efficiency

A

Building Energy Efficiency Programs

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:

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 (ICC); 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 1 year after the deadline for establishment of each such target, except that the national energy efficiency building code established to meet the target described in subsection (a)(1)(A) shall be established by not later than 15 months after the effective date of that target.

(B)

Existing code

If the Secretary finds prior to the date provided in subparagraph (A) for establishing a national code for any target that one or more energy efficiency building codes published by a recognized developer of national energy codes and standards 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 6 months prior to the effective date for each target, review existing and proposed codes published or under review by recognized developers of national energy codes and standards;

(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 developer of national energy codes and standards, adopt a code that meets or exceeds the relevant national building code energy efficiency target by not later than 1 year after the effective date of each such target, and by not later than 15 months after the target is established under subsection (a)(1)(A).

(B)

Calculations

Each national energy efficiency building 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 national energy efficiency building codes—

(I)

residential building standards published or proposed by ASHRAE;

(II)

building codes published or proposed by the International Code Council (ICC);

(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, without reduction of otherwise applicable ceiling insulation standards; and

(ii)

for commercial national energy efficiency building codes—

(I)

commercial building standards proposed by ASHRAE;

(II)

building codes proposed by the International Code Council (ICC);

(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, without reduction of otherwise applicable ceiling insulation standards.

(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 developers of national energy codes and standards 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 a developer 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, tribal, and local code agencies; and

(ii)

provide sufficient support to such a developer to make the code available on the Internet, or to accomplish distribution of such code to all such State, tribal, and local code agencies at no cost to the State, tribal, and local code agencies.

(C)

The Secretary may contract with such a developer and with other organizations with expertise on codes to provide training for State, tribal, 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 a developer 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 developer of national energy codes and standards, negotiate and provide appropriate compensation to such developer 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, tribal, 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 energy efficiency building 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 pursuant to subparagraph (A) in that 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 27 months 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 18 months 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)(5), the national energy efficiency building code shall become the applicable energy efficiency building code for such jurisdiction.

(2)

Conflicts

In the event of a conflict between a provision of the national energy efficiency building code and a provision of other applicable energy codes, the national energy efficiency building code shall apply. If there is a conflict between a provision of the national energy efficiency building code and a provision of any applicable fire code, life safety code, egress code, or accessibility code, the Secretary shall take appropriate actions to resolve such conflict in a manner that does not compromise the objectives of such codes.

(3)

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.

(4)

Notice of intent to enforce

A State or locality that enforces building codes may assume responsibility for enforcing the national energy efficiency building code by notifying the Secretary to that effect not later than three months after the date established under paragraph (1).

(5)

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)(5), or the requirements of the national energy efficiency building code in a State where the State or locality has notified the Secretary of its intent to enforce the provisions of the national energy efficiency building code, a violation shall be determined pursuant to the relevant provisions of State or local law.

(B)

If the building is subject to the requirements of a national energy efficiency building code made applicable under paragraph (1) of this subsection, except as provided in subparagraph (A), 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 (5) 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 application of a national energy efficiency building code under subsection (d)(1), 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 the dates specified in paragraph (2) 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 of this subsection.

(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 and training

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.

(4)

In any jurisdiction to which this subsection applies, the Secretary shall coordinate enforcement of the national energy efficiency building code with State and local code enforcement of other building codes.

(5)

In any jurisdiction to which this subsection applies, the Secretary shall enhance compliance by conducting training and education of builders and other professionals in the jurisdiction concerning the national energy efficiency building code.

(6)

The Secretary shall coordinate with professional organizations representing code officials, architects, engineers, builders, and other experts to develop training curricula concerning the national energy efficiency building code.

(7)

If the Secretary enforces such codes under this subsection, the Secretary may, as appropriate, redefine violations of such codes.

(g)

Enforcement procedures

The Secretary shall propose and, not later than 3 years after the date of enactment of the American Clean Energy and Security Act of 2009, shall define by rule violations of the energy efficiency building codes to be enforced by the Secretary pursuant to this section, and the penalties that shall apply to violators, in any jurisdiction in which the national energy efficiency building code has been made applicable under subsection (d)(1). 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 1 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. 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 that meets the national building code energy efficiency targets, or the national energy efficiency building code. In a State where local governments provide substantially all 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. In a State where local and State governments share building code enforcement duties, the State and local shares of allowance value required for enforcement shall be allocated in proportion to the number of building inspections performed by each level of government, and the share for local governments shall be distributed as a function of the relative populations of such localities. States shall further ensure that the allowance value made available pursuant to section 782 of the Clean Air Act and section 132 of the American Clean Energy and Security Act of 2009 is provided to the applicable State or local governmental entities as necessary to adopt and implement energy efficiency building codes, provide training for inspectors, ensure compliance, and provide such other functions as necessary. Actions taken by local authorities pursuant to this section shall constitute an acceptable use of funds authorized pursuant to the Energy Efficiency and Conservation Block Grant program under section 544 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17154).

(i)

Authorization of appropriations

There are authorized to be appropriated to the Secretary of Energy $25,000,000, and such additional sums as may be necessary to provide enforcement