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

The text of the bill below is as of May 15, 2009 (Introduced).

Source: GPO

I

111th CONGRESS

1st Session

H. R. 2454

IN THE HOUSE OF REPRESENTATIVES

May 15, 2009

(for himself and Mr. Markey of Massachusetts) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

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.

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.

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. 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.

Subtitle D—State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.

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

Subtitle E—Smart Grid Advancement

Sec. 141. Definitions.

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

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

Sec. 144. Smart Grid peak demand reduction goals.

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

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

Subtitle F—Transmission Planning

Sec. 151. Transmission planning.

Sec. 216A. Transmission planning.

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—Clean Energy Innovation Centers

Sec. 171. Clean energy innovation centers.

Subtitle I—Marine Spatial Planning

Sec. 181. Study of ocean renewable energy and transmission planning and siting.

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.

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. Purpose of Energy Star.

Subtitle C—Transportation Efficiency

Sec. 221. Emissions standards.

Part B—Mobile Sources

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

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

Part D—Planning Requirements

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

Sec. 223. SmartWay transportation efficiency program.

Sec. 822. SmartWay transportation efficiency program.

Sec. 224. State vehicle fleets.

Subtitle D—Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.

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

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

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.

Title III—Reducing Global Warming Pollution

Sec. 301. Short title.

Subtitle A—Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

Title VII—Global Warming Pollution Reduction Program

Part A—Global Warming Pollution Reduction Goals and Targets

Sec. 701. Findings and purpose.

Sec. 702. Economy-wide reduction goals.

Sec. 703. Reduction targets for specified sources.

Sec. 704. Supplemental pollution reductions.

Sec. 705. Review and program recommendations.

Sec. 706. National academy review.

Sec. 707. Presidential response and recommendations.

Part B—Designation and registration of greenhouse gases

Sec. 711. Designation of greenhouse gases.

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

Sec. 713. Greenhouse gas registry.

Part C—Program rules

Sec. 721. Emission allowances.

Sec. 722. Prohibition of excess emissions.

Sec. 723. Penalty for noncompliance.

Sec. 724. Trading.

Sec. 725. Banking and borrowing.

Sec. 726. Strategic reserve.

Sec. 727. Permits.

Sec. 728. International emission allowances.

Part D—Offsets

Sec. 731. Offsets Integrity Advisory Board.

Sec. 732. Establishment of offsets program.

Sec. 733. Eligible project types.

Sec. 734. Requirements for offset projects.

Sec. 735. Approval of offset projects.

Sec. 736. Verification of offset projects.

Sec. 737. Issuance of offset credits.

Sec. 738. Audits.

Sec. 739. Program review and revision.

Sec. 740. Early offset supply.

Sec. 741. Environmental considerations.

Sec. 742. Trading.

Sec. 743. International offset credits.

Part E—Supplemental Emissions Reductions from Reduced Deforestation

Sec. 751. Definitions.

Sec. 752. Findings.

Sec. 753. Supplemental emissions reductions through reduced deforestation.

Sec. 754. Requirements for international deforestation reduction program.

Sec. 755. Reports and reviews.

Sec. 756. Legal effect of part.

Sec. 312. Definitions.

Sec. 700. Definitions.

Subtitle B—Disposition of allowances

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

Part H—Disposition of allowances

Sec. 781. Allocation of allowances for supplemental reductions.

Sec. 782. Allocation of emission allowances.

Sec. 783. Electricity consumers.

Sec. 784. Natural gas consumers.

Sec. 785. Home heating oil and propane consumers.

Sec. 786–788. SECTIONS RESERVED.

Sec. 789. Climate change rebates.

Sec. 790. Exchange for State-issued allowances.

Sec. 791. Auction procedures.

Sec. 792. Auctioning allowances for other entities.

Sec. 793. Establishment of funds.

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. Hazardous air pollutants.

Sec. 833. New source review.

Sec. 834. Title V permits.

Sec. 835. Existing proceedings.

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. 336. Enforcement.

Sec. 337. Conforming amendments.

Subtitle D—Carbon Market Assurance

Sec. 341. Carbon market assurance.

Part IV—Carbon Market Assurance

Sec. 401. Oversight and assurance of carbon 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 authority of the Federal Trade Commission.

Sec. 358. Regulation of carbon derivatives markets.

Title IV—Transitioning to a Clean Energy Economy

Subtitle A—Industrial Sector

Sec. 401. Ensuring real reductions in industrial emissions.

Part F—Ensuring real reductions in industrial emissions

Sec. 761. Purposes.

Sec. 762. International negotiations.

Sec. 763. Definitions.

Subpart 1—Emission Allowance Rebate Program

Sec. 764. Eligible industrial sectors.

Sec. 765. Distribution of emission allowance rebates.

Subpart 2—International Reserve Allowance Program

Sec. 766. International reserve allowance program.

Subpart 3—Presidential Determination

Sec. 767. Presidential reports and determinations.

Sec. 402. Allocations to petroleum refineries.

Part G—Petroleum refineries

Sec. 771. Allocations to petroleum refineries.

Subtitle B—Green Jobs and Worker Transition

Part 1—Green Jobs

Sec. 421. Clean energy curriculum development grants.

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

Part 2—Climate Change Worker Adjustment Assistance

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

Sec. 426. Program benefits.

Sec. 427. General provisions.

Subtitle C—Consumer Assistance

Sec. 431. Energy tax credit.

Sec. 36B. Energy tax credit.

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

Subtitle D—Exporting Clean Technology

Sec. 441. Findings and purposes.

Sec. 442. Definitions.

Sec. 443. Governance.

Sec. 444. Determination of eligible countries.

Sec. 445. Qualifying activities.

Sec. 446. Assistance.

Subtitle E—Adapting to Climate Change

Part 1—Domestic Adaptation

Subpart A—National Climate Change Adaptation Program

Sec. 451. National climate change adaptation program.

Sec. 452. Climate services.

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

Subpart B—Public Health and Climate Change

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

Sec. 462. Relationship to other laws.

Sec. 463. National strategic action plan.

Sec. 464. Advisory board.

Sec. 465. Reports.

Sec. 466. Definitions.

Sec. 467. Climate change health protection and promotion fund.

Subpart C—Natural resource adaptation

Sec. 471. Purposes.

Sec. 472. Natural resources climate change adaptation policy.

Sec. 473. Definitions.

Sec. 474. Council on Environmental Quality.

Sec. 475. Natural Resources Climate Change Adaptation Panel.

Sec. 476. Natural Resources Climate Change Adaptation Strategy.

Sec. 477. Natural resources adaptation science and information.

Sec. 478. Federal natural resource agency adaptation plans.

Sec. 479. State natural resources adaptation plans.

Sec. 480. Natural Resources Climate Change Adaptation Fund.

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

Sec. 482. Additional provisions regarding Indian tribes.

Part 2—International Climate Change Adaptation Program

Sec. 491. Findings and purposes.

Sec. 492. Definitions.

Sec. 493. International Climate Change Adaptation Program.

Sec. 494. Distribution of allowances.

Sec. 495. Bilateral assistance.

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 700 of the Clean Air Act, as added by section 312 of this Act.

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 electric output, and the electricity saved due to the mechanical output, of a combined heat and power system, adjusted to reflect any increase in fuel consumption by that system as compared to the fuel that would have been required to produce an equivalent useful thermal energy output in a separate thermal-only system.

(3)

Combined heat and power system

The term combined heat and power system means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that—

(A)

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

(B)

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

(4)

Customer facility savings

The term customer facility savings means a reduction in end-use electricity consumption (including recycled energy savings) at a facility of an end-use consumer of electricity served by a retail electric supplier, as compared to—

(A)

in the case of a new facility, consumption at a reference facility of average efficiency;

(B)

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

(C)

in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; and

(D)

in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency of the same equipment type.

(5)

Distributed renewable generation facility

The term distributed renewable generation facility means a facility that—

(A)

generates renewable electricity;

(B)

primarily serves 1 or more electricity consumers at or near the facility site; and

(C)

is no larger than 2 megawatts in capacity.

(6)

Electricity savings

The term electricity savings means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures implemented after the date of enactment of this section, limited to—

(A)

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

(B)

reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution system equipment of average efficiency;

(C)

CHP savings; and

(D)

fuel cell savings.

(7)

Federal land

The term Federal land means land owned by the United States, other than land held in trust for an Indian or Indian tribe.

(8)

Federal renewable electricity credit

The term Federal renewable electricity credit means a credit, representing one megawatt hour of renewable electricity, issued pursuant to subsection (e).

(9)

Fuel cell

The term fuel cell means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device.

(10)

Fuel cell savings

The term ‘fuel cell savings’ means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as compared with sources of electricity delivered through the grid, provided that—

(A)

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

(B)

the net sales of electricity from the fuel cell to third parties that do not receive thermal service from the fuel cell do not exceed 50 percent of the total annual electricity generation by the fuel cell.

(11)

High conservation priority land

The term high conservation priority land means land that is not Federal land and is—

(A)

globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; or

(B)

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

(12)

Other qualifying energy resource

The term other qualifying energy resource means any of the following:

(A)

Landfill gas.

(B)

Wastewater treatment gas.

(C)

Coal mine methane used to generate electricity at or near the mine mouth.

(D)

Qualified waste-to-energy.

(13)

Qualified hydropower

The term qualified hydropower means—

(A)

energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1992, at a hydroelectric facility that was placed in service before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; or

(B)

energy produced from generating capacity added to a dam on or after January 1, 1992, provided that the Commission certifies that—

(i)

the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not producing hydroelectric power prior to the addition of such capacity;

(ii)

the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; and

(iii)

the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the environmental quality of the affected waterway.

(14)

Qualified waste-to-energy

The term qualified waste-to-energy means energy from the combustion of municipal solid waste or construction, demolition, or disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that—

(A)

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

(B)

the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; and

(C)

the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis—

(i)

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

(ii)

in the case of a facility that commenced operation before the date of the enactment of this section, a certification that the facility meets emissions standards promulgated under sections 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that apply as of the date of the enactment of this section to new facilities within the relevant source category; and

(iii)

in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents.

(15)

Recycled energy savings

The term recycled energy savings means a reduction in electricity consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted.

(16)

Renewable biomass

The term renewable biomass means any of the following:

(A)

Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on the date of enactment of this section;

(B)

Plant material, including waste material, harvested or collected from pastureland that was nonforested on such date of enactment;

(C)

Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals);

(D)

Animal waste or animal byproducts, including products of animal waste digesters;

(E)

Algae;

(F)

Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line;

(G)

Residues from or byproducts of milled logs;

(H)

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

(i)

Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established—

(I)

prior to the date of enactment of this section; or

(II)

on land that, as of the date of enactment of this section, was cultivated or fallow and non-forested.

(ii)

Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.

(iii)

Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after the date of enactment of this section to restore or maintain native forest types.

(iv)

Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees;

(I)

Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—

(i)

not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;

(ii)

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

(iii)

harvested in accordance with Federal and State law and applicable land management plans.

(17)

Renewable electricity

The term renewable electricity means electricity generated (including by means of a fuel cell) from a renewable energy resource or other qualifying energy resources.

(18)

Renewable energy resource

The term renewable energy resource means each of the following:

(A)

Wind energy.

(B)

Solar energy.

(C)

Geothermal energy.

(D)

Renewable biomass.

(E)

Biogas derived exclusively from renewable biomass.

(F)

Biofuels derived exclusively from renewable biomass.

(G)

Qualified hydropower.

(H)

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

(19)

Retail electric supplier

(A)

In general

The term retail electric supplier means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.

(B)

Inclusions and limitations

For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)—

(i)

the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate’s lessees or tenants, for purposes other than resale shall be considered to be sales of such electric utility; and

(ii)

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

(C)

Affiliate

For purposes of this paragraph, the term affiliate when used in relation to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission.

(20)

Retail electric supplier’s base amount

The term retail electric supplier’s base amount means the total amount of electric energy sold by the retail electric supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding—

(A)

electricity generated by a hydroelectric facility that is not qualified hydropower;

(B)

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

(C)

the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and geologically sequestered.

(21)

Retire and retirement

The terms retire and retirement with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation.

(22)

Third-party efficiency provider

The term third-party efficiency provider means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section.

(23)

Total annual electricity savings

The term total annual electricity savings means electricity savings during a specified calendar year from measures that were placed into service since date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in accordance with such regulations as the Commission may promulgate and measured in megawatt hours.

(b)

Annual compliance obligation

(1)

In general

For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier’s annual combined target as set forth in subsection (d), except as otherwise provided in subsection (g).

(2)

Demonstration of savings

For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electricity supplier within the relevant compliance year.

(3)

Renewable electricity credits portion

Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal to at least three quarters of the retail electric supplier’s annual combined target.

(4)

State petition

(A)

In general

Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier’s annual combined target that is attributable to electricity sales within such State.

(B)

Contents

A Governor’s request under this paragraph shall include an explanation of the Governor’s rationale for determining, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective.

(C)

Revision

The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that—

(i)

any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such request is submitted, so as to provide retail electric suppliers with adequate notice of such change; and

(ii)

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

(c)

Establishment of program

Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable—

(1)

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

(2)

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

(3)

cooperate with the States to facilitate coordination between State and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens and costs to retail electric suppliers.

(d)

Annual compliance requirement

(1)

Annual combined targets

For each of calendar years 2012 through 2039, a retail electric supplier’s annual combined target shall be the product of—

(A)

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

(B)

the retail electric supplier’s base amount for such year.

(2)

Required annual percentage

For each of calendar years 2012 through 2039, the required annual percentage shall be as follows:

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

Where renewable electricity is generated with the support of payments from a retail electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity generation that is attributable to the retail electric supplier’s payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States.

(3)

Certain power sales contracts

When a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract.

(4)

Credit multiplier for distributed renewable generation

(A)

In general

Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable electricity generated by a distributed renewable generation facility.

(B)

Adjustment

Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation facilities using such source or technology cost competitive with other sources of renewable electricity generation.

(C)

Facilities placed in service after enactment

For any distributed renewable generation facility placed in service after the date of enactment of this section, subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such 10-year period, the Commission shall issue Federal renewable energy credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B).

(5)

Credits based on qualified hydropower

For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower shall be calculated—

(A)

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

(B)

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

(6)

Generation from mixed renewable and nonrenewable resources

If electricity is generated using both a renewable energy resource or other qualifying energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and fossil fuel), the Commission shall issue Federal renewable electricity credits based son the proportion of the electricity that is attributable to the renewable energy resource or other qualifying energy resource.

(7)

Prohibition against double-counting

Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance with this section.

(8)

Trading

The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such credit for retirement by the Commission.

(9)

Banking

A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which the credit was issued or for any subsequent compliance year.

(10)

Retirement

The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in satisfaction of a compliance obligation under subsection (b) or on some other basis.

(f)

Electricity savings

(1)

Standards for measurement of savings

As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and standards shall, at minimum—

(A)

specify the types of energy efficiency and energy conservation measures that can be counted;

(B)

require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to account for changes in weather, level of production, and building area;

(C)

account for the useful life of measures;

(D)

include deemed savings values for specific, commonly used measures;

(E)

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

(F)

include procedures for counting CHP savings, recycled energy savings, and fuel cell savings;

(G)

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

(H)

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

(I)

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; and

(J)

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 accord with the direction of the relevant State regulatory authority.

(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 accord 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) of this subsection.

(C)

Review of state implementation

The Commission shall periodically review State implementation of delegated authority under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph, the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has—

(i)

promulgated new or substantially revised measurement and verification procedures and standards under this subsection; or

(ii)

otherwise substantially revised the program established under this section.

(g)

Alternative compliance payments

(1)

In general

A retail electric supplier may satisfy the requirements of subsection (b) in whole or in part by submitting in accord 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 accord with such regulations as the Commission may promulgate.

(2)

Payment to State funds

Payments made under this subsection shall be made directly to the State in which the retail electric supplier is located, provided that such payments are deposited directly into a fund within the State’s treasury for use pursuant to paragraph (3).

(3)

State use of funds

States receiving payments under this subsection shall use such funds exclusively for the purposes of—

(A)

deploying technologies that generate electricity from renewable energy resources; or

(B)

cost-effective energy efficiency measures and programs.

(4)

Reporting

Any State that receives a payment under this subsection shall, within 12 months of receipt of such payment, provide a report to the Commission giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby.

(h)

Information collection

The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section.

(i)

Enforcement and judicial review

(1)

Failure to submit credits or demonstrate savings

If any person fails to comply with the requirements of subsection (b) or (g), such person shall be liable to pay to the Commission a civil penalty equal to the product of—

(A)

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

(B)

the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to submit in violation of the requirements of subsections (b) and (g).

(2)

Enforcement

The Secretary shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act (16 U.S.C. 823b(d)).

(3)

Violation of requirement of regulations or orders

Any person who violates, or fails or refuses to comply with, any requirement of a regulation promulgated or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act. Such penalty shall be assessed by the Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act.

(j)

Judicial review

Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (i), may use the procedures for review described in section 313 of the Federal Power Act (16 U.S.C. 825l). For purposes of this paragraph, references to an order in section 313 of such Act shall be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i).

(k)

Savings provisions

Nothing in this section shall—

(1)

diminish or qualify any authority of a State or political subdivision of a State to—

(A)

adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; or

(B)

regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State or political subdivision, including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted under this section; or

(2)

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

(l)

Sunset

This section expires on December 31, 2040.

.

(b)

Conforming amendment

The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by inserting after the item relating to section 609 the following:

Sec. 610. Combined efficiency and renewable electricity standard.

.

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 of the Environmental Protection Agency, in consultation with the Secretary of Energy and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.

(b)

Barriers

The report under this section shall—

(1)

identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State or regional level;

(2)

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

(3)

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

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 of the Environmental Protection Agency shall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State officials with environmental expertise, representatives of State Attorneys General, and members of the private sector, to conduct a study of—

(A)

existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools;

(B)

the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery;

(C)

the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;

(D)

private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; and

(E)

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

(2)

Report

Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force.

(b)

Environmental statutes

(1)

Study

The Administrator of the Environmental Protection Agency 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 or a municipality.

(iii)

Rural electric cooperatives.

(iv)

Fossil fuel producers.

(v)

Non-profit environmental organizations.

(vi)

Independent generators or wholesale power providers.

(vii)

Consumer groups.

(B)

Nonvoting Members

The Board shall also include as additional non-voting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection.

(4)

Compensation

Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.

(5)

Terms

Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.

(6)

Status of Corporation

The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose.

(c)

Functions and administration of the Corporation

(1)

In general

The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.

(2)

Purpose

The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.

(3)

Eligible entities

Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State research agencies, non-profit 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; 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 program 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 matter, 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)(1); 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)(8), 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 to 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

(a)

Regulations

Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations.

(b)

Eligibility criteria

To be eligible to receive emission allowances under this section, the owner of a project must—

(1)

implement carbon capture and sequestration technology—

(A)

at an electric generating unit that—

(i)

has a nameplate capacity of 200 megawatts or more;

(ii)

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

(iii)

upon implementation of capture and sequestration technology, will capture and permanently sequester at least 50 percent of the carbon dioxide, measured on an annual basis, that would be emitted by the unit absent capture and sequestration technology; or

(B)

at an industrial source that—

(i)

injects for sequestration not less than 50,000 tons per year of carbon dioxide;

(ii)

upon implementation, will capture and permanently sequester at least 50 percent of the carbon dioxide produced by the source, measured on an annual basis, that would be emitted in the absence of capture and sequestration technology; and

(iii)

does not produce a liquid transportation fuel from a solid fossil-based feedstock;

(2)

permanently sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;

(3)

meet all other applicable State and Federal permitting requirements; and

(4)

be located in the United States.

(c)

Phase I distribution to electric generating units

(1)

Application

This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units.

(2)

Distribution

The Administrator shall distribute emission allowances allocated under section 782(a)(f) to each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing—

(A)

the product obtained by multiplying—

(i)

the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; and

(ii)

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

(B)

the average fair market value of an emission allowance during the preceding year.

(3)

Bonus allowance values

(A)

For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90.

(B)

The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.

(C)

For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator of its intent to achieve such rate of capture and sequestration by not later than January 1, 2012.

(D)

For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration.

(E)

All monetary values in this section shall be adjusted for inflation.

(d)

Phase II distribution to electric generating units

(1)

Application

This subsection shall apply only to the distribution of emission allowances to carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached.

(2)

Regulations

Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to 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 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 entities;

(ii)

eligible entities 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 entity submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed.

(C)

Form of distribution

The Administrator shall provide deployment incentives to eligible entities selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the incentive level that is bid by the entity shall be substituted for the bonus allowance value.

(4)

Alternative distribution method

(A)

In general

If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to eligible projects under this subsection, in accord with the requirements of this paragraph.

(B)

Multiple tranches

The Administrator shall divide emission allowances available for distribution to eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts.

(C)

Method of distribution

The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis—

(i)

based on the date of full-scale operation of capture and sequestration technology; and

(ii)

pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(2)), establishing the number of allowances to be distributed per ton of carbon dioxide permanently sequestered by the project.

(D)

Requirements

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

(i)

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

(ii)

for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(1)); 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 2015

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 such covered EGU would otherwise be eligible to receive under this section by the product of—

(A)

20 percent; and

(B)

the number of years 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) the capture and permanent sequestration of at least 50 percent of the carbon dioxide, measured on an annual basis, that such covered EGU would emit in the absence of carbon capture and sequestration technology.

(3)

Covered egus initially permitted from 2015 through 2020

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 or thereafter, does not achieve and maintain the capture and permanent sequestration of at least 50 percent of the carbon dioxide, measured on an annual basis, that such covered EGU would emit in the absence of capture and sequestration technology.

(f)

Industrial sources

(1)

Allowances

The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(a)(f) for any vintage year to 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 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

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, the Administrator shall auction, pursuant to section 791, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(a)(f) and are not yet obligated under this section.

(h)

Exhaustion of account and annual roll-over of surplus allowances

(1)

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

(2)

If the Administrator determines that the allowances allocated under section 782(a)(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)

Davis-Bacon Compliance

All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of bonus allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.

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). In determining compliance with this subsection, the Administrator shall assume an energy penalty of the carbon dioxide capture system of no greater than 15 percent.

(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, shall 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. In determining compliance with this subsection, the Administrator shall assume an energy penalty of the carbon dioxide capture system of no greater than 15 percent. 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 issues a determination that there are in commercial operation in the United States electric generating units 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 inject 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.

.

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 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—

(1)

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

(2)

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

(c)

Requirements

The Secretary may provide financial assistance under subsection (b) to an automobile manufacturer if—

(1)

in the case of a reconstruction or retooling described under subsection (b)(1), without financial assistance the automobile manufacturer is not able to reasonably finance the reconstruction or retooling of a facility; or

(2)

in the case of battery purchases described under subsection (b)(2), without financial assistance, the automobile manufacturer is not able to reasonably finance the purchase of such batteries.

(d)

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.

(e)

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 (f), for evaluating applications for financial assistance; and

(3)

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

(f)

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.

(g)

Reports

The Secretary shall annually submit to Congress a report on the program established pursuant to this section.

(h)

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

(A)

in each of the years 2012 through 2016, the average base year shall be model year 2009; and

(B)

in 2017, the Administrator shall, notwithstanding 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 allowances allocated pursuant to section 782(i) of the Clean Air Act not later than October 31 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 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 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 allowances under this subsection, 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 allowances to an applicant, joint sponsor or automobile manufacturer for up to five consecutive years if—

(A)

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

(B)

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

(C)

the Administrator confirms to the Secretary that 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, allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted applications that meet the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act, the remaining 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 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 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 per vehicle.

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 create a State Energy and Environment Development Account.

(c)

Purpose

The purpose of each SEED Account is to serve as a common State-level repository for managing and accounting for emission allowances provided to States designated for renewable energy and energy efficiency purposes.

(d)

Regulations

Not later than one year after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out this section, including regulations—

(1)

to ensure that each State operates its SEED Account and any subaccounts thereof efficiently and in accordance with this Act and applicable State and Federal laws;

(2)

to prevent waste, fraud, and abuse;

(3)

to indicate the emission allowances that may be deposited in a State’s SEED Account pending distribution or use;

(4)

to indicate the programs and objectives authorized by Federal law for which emission allowances in a SEED Account may be distributed or used;

(5)

to identify the forms of financial assistance and incentives that States may provide through distribution or use of SEED Accounts; and

(6)

to prescribe the form and content of reports that the States are required to submit under this section on the use of SEED Accounts.

(e)

Operation

(1)

Deposits

(A)

In general

Except as required pursuant to subparagraph (B), a State shall deposit into its SEED Account all allowances received from the Administrator for renewable energy and energy efficiency purposes, pursuant to this Act.

(B)

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 or withdrawn from SEED Accounts, including the proceeds of any sale or such allowances, shall support renewable energy and energy efficiency programs authorized or approved by the Federal Government.

(B)

Dedicated allowances

Allowances deposited in a SEED Account 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 deposited in a SEED Account 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 create and maintain subaccounts 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 established 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 deposits into the SEED Account, withdrawals from the SEED Account, and SEED Account balances, including any subaccounts or related financial accounts. Such controls and procedures shall conform to generally accepted government accounting principles. Any State that has established a SEED Account shall retain records for a period of at least 5 years.

(B)

Audits

Any State that has established 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 Secretary 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 established 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)

Cost-effective

The term cost-effective, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.

(2)

Renewable energy resource

The term renewable energy resource shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).

(3)

State

The term State shall have the meaning given that term in section 302(d) of the Clean Air Act (42 U.S.C. 7602(d)).

(b)

Distribution among states

The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(g)(1) not later than September 30, 2012, and each calendar year thereafter through 2050. The Administrator shall distribute the emission allowances to States for renewable energy and energy efficiency programs to be deposited in and administered through the State Energy and Environment Development (SEED) Accounts established pursuant to section 131 of the American Clean Energy and Security Act of 2009. The Administrator shall distribute allowances among the States under this section each year in accordance with the following formula:

(1)

One third of the allowances shall be divided equally among the States.

(2)

One third of the allowances shall be distributed ratably among the States based on the population of each State, as contained in the most recent reliable census data available from the Bureau of the Census, Department of Commerce, for all States at the time the Administrator calculates the formula for distribution.

(3)

One third of the allowances for shall be distributed ratably among the States on the basis of the energy consumption of each State as contained in the most recent State Energy Data Report available from the Energy Information Administration (or such alternative reliable source as the Administrator may designate).

(c)

Uses

The allowances distributed to each State pursuant to this section shall be used exclusively for the purposes listed in this subsection, as set forth below:

(1)

Not less than 12.5 percent shall be distributed by the State to units of local government within such State to be used exclusively to support the energy efficiency and renewable energy purposes listed in paragraphs (2) and (3).

(2)

Not less than 20 percent shall be used exclusively for the following energy efficiency purposes—

(A)

implementation and enforcement of building codes adopted in compliance with section 201 of the American Clean Energy and Security Act of 2009;

(B)

implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to section 202 of the American Clean Energy and Security Act of 2009;

(C)

implementation of the energy efficient manufactured homes program established pursuant to section 203 of the American Clean Energy and Security Act of 2009;

(D)

implementation of the building energy performance labeling program established pursuant to section 204 of the American Clean Energy and Security Act of 2009;

(E)

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)), including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis;

(F)

transportation planning pursuant to section 841; and

(G)

other cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane, including, where appropriate, programs or mechanisms administered by local governments and entities other than the State.

(3)

Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, and interest rate buy-downs for—

(A)

re-equipping, expanding, or establishing a manufacturing facility that receives certification from the Secretary of Energy pursuant to section 1302 of the American Recovery and Reinvestment Act of 2009 for the production of—

(i)

property designed to be used to produce energy from renewable energy sources; and

(ii)

electricity storage systems; and

(B)

deployment of technologies to generate electricity from renewable energy sources.

(4)

The remaining 47.5 percent shall be used exclusively for any of the purposes described in subparagraphs (A) through (F) of paragraph (2) and in paragraph (3).

(d)

Reporting

Each State receiving emission allowances under this section shall include in its biennial reports required under section 131 of the American Clean Energy and Security Act of 2009, in accordance with such requirements as the Administrator may prescribe—

(1)

a list of entities receiving allowances or allowance value under this section;

(2)

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

(3)

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

(4)

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

(5)

an assessment of the cost-effectiveness of any energy efficiency program supported under subsection (c)(2)(G).

(e)

Enforcement

If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold a portion of the allowances, the value of which is equal to up to twice the value of the 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).

E

Smart Grid Advancement

141.

Definitions

For purposes of this subtitle:

(1)

The term Administrator means the Administrator of the Environmental Protection Agency.

(2)

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.

(3)

The termCommission means Federal Energy Regulatory Commission.

(4)

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.

(5)

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.

(6)

The term peak demand reduction means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW), whether accomplished by diminishing the end-use requirements for electricity or by use of locally stored or generated electricity to meet those requirements from distributed resources on the load-serving entity’s customers’ premises and without use of high-voltage transmission.

(7)

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.

(8)

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.

(9)

The term Secretary means the Secretary of Energy.

(10)

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 one year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products.

(b)

Analysis

(1)

Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection (a) in the following optimal circumstances:

(A)

The products possessed Smart Grid capability and interoperability that is tested and proven reliable.

(B)

The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products.

(C)

The utility’s rates reflected national average costs, including average peak and valley seasonal and daily electricity costs.

(D)

Consumers using such products took full advantage of such capability.

(E)

The utility avoided incremental investments and rate increases related to such savings.

(2)

The analysis under paragraph (1) shall be considered the best case Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term cost effective means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product’s expected useful life will be greater than the incremental cost of the Smart Grid features included in the product.

(3)

To the extent that including Smart Grid capability in any products analyzed under paragraph (2) is found to be cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions:

(A)

Inform the manufacturer of such product of such finding of cost effectiveness.

(B)

Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability.

(C)

Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the Energy Star program.

(D)

Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings.

(E)

Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that could result if Smart Grid capability were installed and utilized on such products

143.

Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels

Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at the end:

(J)
(i)

Not later than 3 years after the date of enactment of this subparagraph, the Federal Trade Commission shall initiate a rulemaking to consider making a special note in a prominent manner on any ENERGY GUIDE label for any product actually including Smart Grid capability that—

(I)

Smart Grid capability is a feature of that product;

(II)

the use and value of that feature depended on the Smart Grid capability of the utility system in which the product was installed and the active utilization of that feature by the customer; and

(III)

on a utility system with Smart Grid capability, the use of the product’s Smart Grid capability could reduce the customer’s cost of the product’s annual operation by an estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such Smart Grid capability.

(ii)

Not later than 3 years after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).

.

144.

Smart Grid peak demand reduction goals

(a)

Goals

Not later than one year after the date of enactment of this Act, load-serving entities, or, at their option, States with respect to load-serving entities that they regulate, shall determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of 250 megawatts.

(b)

Baselines

(1)

The Commission, in consultation with the Secretary and the Administrator, shall develop and publish, after an opportunity for public comment, a methodology to provide for adjustments or normalization to a load-serving entity’s applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and any other appropriate factors external to peak demand management, as determined by the Commission.

(2)

The Commission shall support load-serving entities (including any load-serving entities with an applicable baseline of less than 250 megawatts that volunteer to participate in achieving the purposes of this section) in determining their applicable baselines, and in developing their peak demand reduction goals.

(3)

The Secretary, in consultation with the Commission, the Administrator, and the National Electric Reliability Corporation, shall develop a system and rules for measurement and verification of demand reductions.

(c)

Peak demand reduction goals

(1)

Peak demand reduction goals may be established for an individual load-serving entity, or, at the determination of a State or regional entity, by that State or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.

(2)

A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory commissions, State energy offices, the National Electric Reliability Corporation, and other relevant authorities.

(3)

In determining the applicable peak demand reduction goals, States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential Assessment, as authorized by section 571 of the National Energy Conservation Policy Act (42 U.S.C. 8279).

(4)

The applicable peak demand reduction goals shall provide that—

(A)

load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year 2012;

(B)

load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year 2015; and

(C)

the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive effort to deploy Smart Grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).

(d)

Plan

Each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options:

(1)

Direct reduction in megawatts of peak demand through energy efficiency measures with reliable and continued application during peak demand periods.

(2)

Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following:

(A)

Megawatts enrolled in demand response programs.

(B)

Megawatts subject to the ability of a load-serving entity to call on demand response programs, smart appliances, smart electricity storage devices, distributed generation resources on the entity’s customers’ premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (dynamic peak management control).

(C)

Megawatts available from distributed dynamic electricity storage under agreement with the owner of that storage.

(D)

Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations.

(E)

Megawatts available from smart appliances and equipment with Smart Grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment.

(F)

Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions are directly related to solar radiation and accompanying heat.

(3)

If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load-serving entity must demonstrate this capability by operating a test during the applicable calendar year.

(4)

Nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers.

(e)

Existing authority and requirements

Nothing in this section diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting peak demand management, demand response, distributed storage, use of distributed generation, or the regulation of load-serving entities. The Commission, in consultation with States having such peak management, demand response and distributed storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State programs.

(f)

Relief

The Commission may, for good cause, grant relief to load-serving entities from the requirements of this section.

(g)

Other laws

Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.

(h)

Compliance

(1)

The Commission shall within one year after the date of enactment of this Act establish a public website where the Commission will provide information and data demonstrating compliance by States, regional entities, and load-serving entities with this section, including the success of load-serving entities in meeting applicable peak demand reduction goals.

(2)

The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this section and success in meeting applicable peak demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.

(3)

The Commission shall note in each such report any State, political subdivision of a State, or load-serving entity that has failed to comply with this section, or is not a part of any region or group of load-serving entities serving a region that has complied with this section.

(4)

The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load-serving entities.

(i)

Assistance to States and funding

(1)

Assistance to states

Any costs incurred by States for activities undertaken pursuant to this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts pursuant to section ___ 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

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding after section 216 the following new section:

216A.

Transmission planning

(a)

Federal policy

(1)

Objectives

It is the policy of the United States that regional electric grid planning should facilitate the deployment of renewable and other zero-carbon energy sources for generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, and providing for cost-effective electricity services throughout the United States.

(2)

Options

In addition to the policy under paragraph (1), it is the policy of the United States that regional electric grid planning to meet these objectives should take into account all significant demand-side and supply-side options, including energy efficiency, distributed generation, renewable energy and zero-carbon electricity generation technologies, smart-grid technologies and practices, demand response, electricity storage, voltage regulation technologies, high capacity conductor and superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity and corridors.

(b)

Planning

(1)

Planning principles

Not later than 1 year after the date of enactment of this section, the Commission shall adopt, after notice and opportunity for comment, national electricity grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future transmission planning that may implicate interstate transmission of electricity.

(2)

Regional planning entities

Not later than 3 months after the date of adoption by the Commission of national electricity grid planning principles pursuant to paragraph (1), entities that conduct or may conduct transmission planning pursuant to State or Federal law or regulation, including States, entities designated by States, public utility transmission providers, operators and owners, regional organizations, and electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans to the Commission.

(3)

Coordination of regional planning entities

The Commission shall encourage regional planning entities described under paragraph (2) to cooperate and coordinate across regions and to harmonize regional electric grid planning with planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission shall work with States, public utilities transmission providers, load-serving entities, transmission operators, and other organizations to resolve any conflict or competition among proposed planning entities in order to build consensus and promote the Federal policy established under subsection (a). The Commission shall seek to ensure that planning that is consistent with the national electricity grid planning principles adopted pursuant to paragraph (1) is conducted in all regions of the United States and the territories.

(4)

Relation to existing planning policy

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

(A)

incorporate any ongoing planning efforts undertaken pursuant to section 217; and

(B)

consult with and invite the participation of the Secretary of Energy in relationship to the Secretary’s duties pursuant to section 216.

(5)

Assistance

(A)

In general

The Commission shall provide support to and participate in the regional grid planning processes conducted by regional planning entities. The Commission may provide planning resources and assistance as required or as requested by regional planning entities, including system data, cost information, system analysis, technical expertise, modeling support, dispute resolution services, and other assistance to regional planning entities, as appropriate.

(B)

Authorization

There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.

(6)

Conflict resolution

In the event that regional grid plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to achieve the objectives of the Federal policy established under subsection (a).

(7)

Submission of plans

The Commission shall require regional planning entities to submit initial regional electric grid plans to the Commission not later than 18 months after the date the Commission promulgates national electricity grid planning principles pursuant to paragraph (1). Regional electric grid plans should, in general, be developed from sub-regional requirements and plans, including planning input reflecting individual utility service areas. Regional plans may then in turn be combined into larger regional plans, up to interconnection-wide and national plans, as appropriate and necessary as determined by the Commission. The Commission shall review such plans for consistency with the national grid planning principles and may return a plan to one or more planning entities for further consideration, along with the Commission’s own recommendations for resolution of any conflict or for improvement. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission’s website.

(8)

Multi-regional meetings

As regional grid plans are submitted to the Commission, the Commission may convene multi-regional meetings to discuss regional grid plan consistency and integration, including requirements for multi-regional projects, and to resolve any conflicts that emerge from such multi-regional projects. The Commission shall provide its recommendations for eliminating any inter-regional conflicts.

(9)

Report to congress

Not later than 3 years after the date of enactment of this section, the Commission shall provide a report to Congress containing the results of the regional grid planning process, including summaries of the adopted regional plans. The Commission shall provide an electronic version of its report on its website with links to all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any conflicts not resolved during the planning process. The Commission shall make any recommendations to Congress on the appropriate Federal role or support required to address the needs of the electric grid, including recommendations for addressing any needs that are beyond the reach of existing State and Federal authority.

.

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.

(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 306(c) of the Energy Independence and Security Act of 2007 (121 Stat. 1559) is amended—

(A)

by striking Section and all that follows through is amended and inserting Section 342(a)(6)(C) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(6)(C)) (as amended by section 305(b)(2)) is amended; and

(B)

by redesignating clause (iii) of section 342(a)(6)(B) of the Energy Policy and Conservation Act (as added by section 306(c) of the Energy Independence and Security Act of 2007) 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) take effect on December 19, 2010; and

(ii)

subparagraph (B) 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

(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 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) (as amended by sections 432 and 434(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1607, 1614)) is amended by redesignating subsection (f) (as added by section 434(a) of that Act) as subsection (g).

(4)

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.

.

(5)

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.

(6)

Section 440 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17096) is amended by striking and 482.

(7)

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)

Title V—Energy savings in government and public institutions

Section 541(3)(A)(i)(II) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17151(3)(A)(i)(II)) is amended by striking and after the semicolon at the end and inserting or.

(d)

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

Clean Energy Innovation Centers

171.

Clean energy innovation centers

(a)

Purpose

The Secretary shall carry out a program to establish Clean Energy Innovation Centers to enhance the Nation’s economic, environmental, and energy security by promoting commercial deployment of clean, indigenous energy alternatives to oil and other fossil fuels, reducing greenhouse gas emissions, and ensuring that the United States maintains a technological lead in developing and deploying state-of-the-art energy technologies. To achieve these purposes the program shall—

(1)

leverage the expertise and resources of the university and private research communities, industry, venture capital, national laboratories, and other participants in energy innovation to support cross-disciplinary research and development in areas not being served by the private sector in order to develop and transfer innovative clean energy technologies into the marketplace;

(2)

expand the knowledge base and human capital necessary to transition to a low-carbon economy; and

(3)

promote regional economic development by cultivating clusters of clean energy technology firms, private research organizations, suppliers, and other complementary groups and businesses.

(b)

Definitions

For purposes of this section:

(1)

Allowance

The term allowance means an emission allowance under section 721 of the Clean Air Act.

(2)

Center

The term Center means a Clean Energy Innovation Center established in accordance with this section.

(3)

Clean energy technology

The term clean energy technology means a technology that—

(A)

produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy resources (as such term is defined in section 610 of the Public Utility Regulatory Policies Act of 1978);

(B)

more efficiently transmits, distributes, or stores energy;

(C)

enhances energy efficiency for buildings and industry, including combined heat and power;

(D)

enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381)), including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis;

(E)

produces an advanced or sustainable material with energy or energy efficiency applications;

(F)

enhances water security through improved water management, conservation, distribution, and end use applications; or

(G)

improves energy efficiency for transportation, including electric vehicles.

(4)

Cluster

The term cluster means a concentration of firms directly involved in the research, development, finance, and commercialization of clean energy technologies whose geographic proximity facilitates utilization and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and input suppliers.

(5)

Project

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

(6)

Qualifying entity

The term qualifying entity means each of the following:

(A)

A research university.

(B)

A State institution with a focus on the advancement of clean energy technologies.

(C)

A nongovernmental organization with research or commercialization expertise in clean energy technology development.

(7)

Secretary

The term Secretary means the Secretary of Energy.

(8)

Technology focus

The term technology focus means the unique technology area in which a Center will specialize, and may include solar electricity, fuels from solar energy, batteries and energy storage, electricity grid systems and devices, energy efficient building systems and design, advanced materials, modeling and simulation, and other clean energy technology areas designated by the Secretary.

(9)

Translational research

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

(c)

Role of the secretary

The Secretary shall—

(1)

have ultimate responsibility for, and oversight of, all aspects of the program under this section;

(2)

provide for the distribution of allowances to consortia for the establishment of 8 Centers pursuant to this section, with each Center designated a unique technology focus area;

(3)

coordinate the innovation activities of Centers with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research Projects Agency—Energy, and Energy Frontier Research Centers, and within industry, and to avoid duplication of research, by annually—

(A)

issuing guidance regarding national energy research and development priorities and strategic objectives; and

(B)

convening a conference of staff of the Department of Energy and representatives from such other entities to share research results, program plans, and opportunities for collaboration.

(d)

Consortium

A consortium shall be eligible to receive allowances to support the establishment of a Center under this section if—

(1)

it is composed of—

(A)

2 research universities with a combined annual research budget of $500,000,000; and

(B)

no fewer than 1 additional qualifying entity;

(2)

its members have established a binding agreement that documents—

(A)

the structure of the partnership agreement;

(B)

the governance and management structure to enable cost-effective implementation of the program;

(C)

an intellectual property management policy;

(D)

conflicts of interest policy consistent with subsection (e)(4);

(E)

an accounting structure that meets the requirements of the Department and can be audited under subsection (f)(3); and

(F)

has an Advisory Board consistent with subsection (e)(3);

(3)

it receives financial contributions from States, consortium participants, or other non-Federal sources, to be used pursuant to subsection (e)(2);

(4)

it is part of an existing cluster or demonstrates high potential to develop a new cluster; and

(5)

it operates as a nonprofit organization.

(e)

Clean energy innovation centers

(1)

Role

Centers shall provide support to activities leading to commercial deployment of clean energy technologies pursuant to the purposes of this section through issuance of awards to projects managed by qualifying entities and other entities meeting the Center’s project criteria, including national laboratories. Each Center shall—

(A)

develop and publish for public review and comment proposed plans, programs, and project selection criteria;

(B)

submit an annual report to the Secretary summarizing the Center’s activities, organizational expenditures, and Board members, which shall include a certification of compliance with conflict of interest policies and a description of each project in the research portfolio;

(C)

establish policies—

(i)

regarding intellectual property developed as a result of Center awards and other forms of technology support that encourage individual ingenuity and invention while speeding knowledge transfer and facilitating the establishment of rapid commercialization pathways;

(ii)

to prevent resources provided to the Center from being used to displace private sector investment likely to otherwise occur, including investment from private sector entities which are members of the consortium;

(iii)

to facilitate the participation of private investment firms or other private entities that invest in clean energy technologies to perform due diligence on award proposals, to participate in the award review process, and to provide guidance to projects supported by the Center; and

(iv)

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

(D)

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

(E)

monitor project implementation.

(2)

Use and distribution of awards by centers

A Center shall allocate awards and other support for—

(A)

clean energy technology projects conducting translational research and related activities, at least 40 percent of which shall be utilized for projects related to the Center’s technology focus; and

(B)

administrative expenses, which may constitute no more than 10 percent of the award.

(3)

Advisory boards

(A)

In general

Each Center shall establish an Advisory Board whose members shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. The Advisory Board shall review the Center’s proposed plans, programs, project selection criteria, and projects and shall ensure that projects selected for awards meet the conflict of interest policies of the Center. Advisory Board members other than those representing consortium members shall serve for no more than three years and must comply with conflict of interest provisions.

(B)

Members

Each Advisory Board shall consist of—

(i)

5 members selected by the consortium’s research universities;

(ii)

2 members selected by the consortium’s other qualifying entities; and

(iii)

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

Individuals appointed under clause (iii) shall not be State or Federal employees or affiliated with the consortium’s qualified entities.
(C)

Nonvoting members

The Board shall also include 1 nonvoting member appointed by the Secretary.

(D)

Compensation

Members of an Advisory Board may receive reimbursement for travel expenses and a reasonable stipend.

(4)

Conflict of interest

(A)

Procedures

Centers shall establish procedures to ensure that employees or consortia designees for Center activities who are in decisionmaking capacities shall—

(i)

disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under paragraph (1), including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and

(ii)

recuse himself or herself from any funding decision for projects in which he or she has a personal financial interest.

(B)

Disqualification and revocation

The Secretary may disqualify an application or revoke allowances distributed to the Center or awards provided under paragraph (1), if cognizant officials of the Center fail to comply with procedures required under subparagraph (A).

(f)

Distribution of allowances to clean energy innovation centers

(1)

Selection and schedule

Allowances to support the establishment of a Center shall be distributed through a competitive process. Not later than 120 days after the date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to establish Centers, which shall be submitted not later than 180 days after the date of enactment of this Act. The Secretary shall select the program consortia not later than 270 days after the date of enactment of this Act pursuant to subsection (d). The Secretary shall award 3 grants for the establishment of 3 Centers of Excellence to be located on the campus of 1890 Land Grant Institution (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7061)).

(2)

Term and use of allowances

Allowances distributed to Centers shall be used to provide awards pursuant to subsection (e)(1). The amount of allowances distributed to support the establishment of a Center under this section shall not be less than 10 and not more than 30 percent of the allowances allocated under section 782(h) of the Clean Air Act, each year for a 6 year period. Centers shall be eligible to compete for additional allowance distribution after the expiration of the initial period. Centers shall establish award periods for individual awards. The transfer of allowances to a Center shall occur at the start of each calendar year.

(3)

Audit

Each Center shall conduct an annual audit to determine the extent to which allowances distributed to the Center, and awards under subsection (e) have been utilized in a manner consistent with this section. The auditor shall transmit a report of the results of the audit to the Secretary and to the Government Accountability Office. The Secretary shall include such report in the annual report to Congress, along with a plan to remedy any deficiencies cited in the report. The Government Accountability Office may review such audits as appropriate and shall have full access to the books, records, and personnel of the Center to ensure that allowances distributed to the Center, and awards made under subsection (e), have been utilized in a manner consistent with this section.

I

Marine Spatial Planning

181.

Study of ocean renewable energy and transmission planning and siting

(a)

Definitions

In this section:

(1)

Marine Spatial Plan

The term marine spatial plan means the analysis and allocation of ocean space for various uses to achieve ecological, economic, and social objectives, based on the principle of ecosystem-based management.

(2)

Marine Spatial Planning

The term marine spatial planning means the process of developing a marine spatial plan.

(3)

Ecosystem-based management

The term ecosystem-based management means a management approach that ensures the future ecological and economic sustainability of natural resources by—

(A)

accounting for all ecosystem interactions and direct, indirect, and cumulative impacts of human activities on the ecosystem;

(B)

emphasizing protection of ecosystem structure, functions, patterns, and processes; and

(C)

maintaining ecosystems in a healthy and resilient condition.

(4)

Offshore renewable energy

The term offshore renewable energy means energy generated from offshore wind or offshore hydrokinetic (wave, tidal, ocean current, and tidal-current) energy technologies.

(5)

Offshore renewable energy facility

The term offhsore renewable energy facility means a facility that generates offshore renewable energy or any offshore transmission line associated with such facility.

(b)

Study

(1)

In general

As soon as practicable after the date of enactment of this section, the Federal Energy Regulatory Commission, the Secretary of the Interior, and the National Oceanic and Atmospheric Administration, in consultation with the Council on Environmental Quality and, as appropriate, coastal States, regional organizations of coastal States, and relevant nongovernmental organizations, shall jointly conduct a study of the potential for marine spatial planning to facilitate the development of offshore renewable energy facilities in a manner that protects and maintains coastal and marine ecosystem health.

(2)

Requirements

The study under paragraph (1) shall include—

(A)

identification of the steps involved in regional marine spatial planning for the siting of offshore renewable energy facilities;

(B)

a recommended approach for the development of regional marine spatial plans for the siting of offshore renewable energy facilities that provides for—

(i)

the participation of relevant Federal agencies and State governments;

(ii)

coordination, to the maximum extent practicable, with any marine spatial planning undertaken by States;

(iii)

public input; and

(iv)

the periodic revision of such plans as necessary to account for significant new information and ensure achievement of plan objectives;

(C)

identification of required elements of such regional marine spatial plans, including rules that Federal agencies shall apply to applications for any authorizations required under existing Federal law to construct or operate offshore renewable energy facilities within areas covered by such plans;

(D)

an assessment of the adequacy of existing data, including baseline environmental data, to support such marine spatial planning and identification of gaps in such data and the studies needed to fill such gaps;

(E)

an assessment of the resources required to carry out such marine spatial planning;

(F)

recommended mechanisms for the formal adoption and implementation of regional marine spatial plans for the development of offshore renewable energy facilities by relevant Federal agencies;

(G)

identification of any additional authority relevant Federal agencies would need to adopt and implement regional marine spatial plans for the development of offshore renewable energy facilities; and

(H)

such other recommendations as appropriate.

(3)

Report

Not later than 6 months after the date of enactment of this section, the Federal Energy Regulatory Commission, the Secretary of the Interior, and the National Oceanic and Atmospheric Administration shall jointly publish the findings and recommendations of the study conducted pursuant to this subsection and shall accept public comment for at least 30 days after such publication. Following consideration of any public comments, and not later than 8 months after the date of enactment of this section, the Federal Energy Regulatory Commission, the Secretary of the Interior, and the National Oceanic and Atmospheric Administration shall jointly submit to Congress and the Council on Environmental Quality the findings and recommendations of the study conducted pursuant to this subsection.

(c)

Assessment of report

(1)

In general

Not later than 4 months after the date of submission of the report required under subsection (b)(3), the Council on Environmental Quality shall assess the recommendations of such report, issue a written determination as to whether the recommended approach to marine spatial planning should be implemented, and transmit such written determination to the relevant Federal agencies and Congress.

(2)

Coordination for recommended approach

If the Council on Environmental Quality determines that the recommended approach to marine spatial planning should be implemented, the relevant Federal agencies shall implement such approach no later than 18 months after the written determination required by paragraph (1), and the Council on Environmental Quality shall coordinate such implementation. At the time of the written determination required by paragraph (1), the Council on Environmental Quality shall notify Congress if the relevant Federal agencies lack authority to carry out any aspect of the recommended approach.

(3)

Alternative approach

If the Council on Environmental Quality determines that the recommended approach to marine spatial planning should not be implemented, the Council on Environmental Quality shall formulate an alternative approach and submit such alternative approach to the relevant Federal agencies and Congress at the time of the written determination required by paragraph (1).

(d)

Relationship to existing law

Nothing in this section shall affect or be construed to affect any law, regulation, or memoranda of understanding governing the development of offshore renewable energy facilities in effect prior to the implementation of the recommended or alternative approach pursuant to subsection (c).

(e)

Authorization

There are authorized to be appropriated such sums as may be necessary to carry out this section.

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; and

(B)

for commercial buildings, the code published in ASHRAE Standard 90.1–2004.

(7)

Consultation

In establishing the targets required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.

(b)

National energy efficiency building codes

(1)

Requirement

(A)

In general

There shall be established national energy efficiency building codes under this subsection, for residential and commercial buildings, sufficient to meet each of the national building code energy efficiency targets established under subsection (a), not later than the date that is one year after the deadline for establishment of each such target.

(B)

Existing code

If the Secretary finds prior to the date one year after the deadline for establishing a target that one or more energy efficiency building codes published by a recognized consensus-based code development organization meet or exceed the established target, the Secretary shall select the code that meets the target with the highest efficiency in the most cost-effective manner, and such code shall be the national energy efficiency building code.

(C)

Requirement to establish code

If the Secretary does not make a finding under subparagraph (B), the national energy efficiency building code shall be established by rule by the Secretary under paragraph (2).

(2)

Establishment by Secretary

(A)

Procedure

In order to establish a national energy efficiency building code as required under paragraph (1)(C), the Secretary shall—

(i)

not later than six months prior to the effective date for each target, review existing and proposed codes published or under review by recognized consensus-based code development organizations;

(ii)

determine the percentage of energy efficiency improvements that are or would be achieved in such published or proposed code versions relative to the target;

(iii)

propose improvements to such published or proposed code versions sufficient to meet or exceed the target; and

(iv)

unless a finding is made under paragraph (1)(B) with respect to a code published by a recognized consensus-based code development organization, adopt a code that meets or exceeds the relevant national building code energy efficiency target by not later than one year after the effective date of such target.

(B)

Calculations

Each code established by the Secretary under this paragraph shall be set at the maximum level the Secretary determines is life cycle cost-justified and technically feasible, in accordance with the following:

(i)

Savings Calculations

Calculations of energy savings shall take into account the typical lifetimes of different products, measures, and system configurations.

(ii)

Cost-Effectiveness Calculations

Calculations of life cycle cost-effectiveness shall be based on life cycle cost methods and procedures under section 544 of the National Energy Conservation Policy Act (42 U.S.C. 8254), but shall incorporate to the extent feasible externalities such as impacts on climate change and on peak energy demand that are not already incorporated in assumed energy costs.

(C)

Considerations

In developing a national energy efficiency building code under this paragraph, the Secretary shall consider—

(i)

for residential codes—

(I)

residential building standards published or proposed by ASHRAE;

(II)

residential building codes published or proposed in the International Energy Conservation Code (IECC);

(III)

data from the Residential Energy Services Network (RESNET) on compliance measures utilized by consumers to qualify for the residential energy efficiency tax credits established under the Energy Policy Act of 2005;

(IV)

data and information from the Department of Energy’s Building America Program;

(V)

data and information from the Energy Star New Homes program;

(VI)

data and information from the New Building Institute and similar organizations; and

(VII)

standards for practices and materials to achieve cool roofs in residential buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs; and

(ii)

for commercial codes—

(I)

commercial building standards proposed by ASHRAE;

(II)

commercial building codes proposed in the International Energy Conservation Code (IECC);

(III)

the Core Performance Criteria published by the New Buildings Institute;

(IV)

data and information developed by the Director of the Commercial High-Performance Green Building Office of the Department of Energy and any public-private partnerships established under that Office;

(V)

data and information from the Energy Star for Buildings program;

(VI)

data and information from the New Building Institute, RESNET, and similar organizations; and

(VII)

standards for practices and materials to achieve cool roofs in commercial buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs.

(D)

Consultation

In establishing any national energy efficiency building code required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.

(3)

Consensus standard assistance

(A)

To support the development of consensus standards that may provide the basis for national energy efficiency building codes, minimize duplication of effort, encourage progress through consensus, and facilitate the development of greater building efficiency, the Secretary shall provide assistance to recognized consensus-based code development organizations to develop, and where the relevant code has been adopted as the national code, disseminate consensus based energy efficiency building codes as provided in this paragraph.

(B)

Upon a finding by the Secretary that a code developed by such an organization meets a target established under subsection (a), the Secretary shall—

(i)

send notice of the Secretary’s finding to all duly authorized or appointed State and local code agencies; and

(ii)

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

(C)

The Secretary may contract with such an organization and with other organizations with expertise on codes to provide training for State and local code officials and building inspectors in the implementation and enforcement of such code.

(D)

The Secretary may provide grants and other support to such an organization to—

(i)

develop appropriate refinements to such code; and

(ii)

support analysis of options for improvements in the code to meet the next scheduled target.

(4)

Code developed by Secretary

If the Secretary establishes a national energy efficiency building code under paragraph (2), the Secretary shall—

(A)

to the extent that such code is based on a prior code developed by a recognized consensus-based code development organization, negotiate and provide appropriate compensation to such organization for the use of the code materials that remain in the code established by the Secretary; and

(B)

disseminate the national energy efficiency building codes to State and local code officials, and support training and provide guidance and technical assistance to such officials as appropriate.

(c)

State adoption of energy efficiency building codes

(1)

Requirement

Not later than 1 year after a national energy efficiency building code for residential or commercial buildings is established or revised under subsection (b), each State—

(A)

shall—

(i)

review and update the provisions of its building code regarding energy efficiency to meet or exceed the target met in the new national code, to achieve equivalent or greater energy savings;

(ii)

document, where local governments establish building codes, that local governments representing not less than 80 percent of the State’s urban population have adopted the new national code, or have adopted local codes that meet or exceed the target met in the new national code to achieve equivalent or greater energy savings; or

(iii)

adopt the new national code; and

(B)

shall provide a certification to the Secretary demonstrating that energy efficiency building code provisions that apply throughout the State meet or exceed the target met by the new national code, to achieve equivalent or greater energy savings.

(2)

Confirmation

(A)

Requirement

Not later than 90 days after a State certification is provided under paragraph (1)(B), the Secretary shall determine whether the State’s energy efficiency building code provisions meet the requirements of this subsection.

(B)

Acceptance by Secretary

If the Secretary determines under subparagraph (A) that the State’s energy efficiency building code or codes meet the requirements of this subsection, the Secretary shall accept the certification.

(C)

Deficiency notice

If the Secretary determines under subparagraph (A) that the State’s building code or codes do not meet the requirements of this subsection, the Secretary shall identify the deficiency in meeting the national building code energy efficiency target, and, to the extent possible, indicate areas where further improvement in the State’s code provisions would allow the deficiency to be eliminated.

(D)

Revision of code and recertification

A State may revise its code or codes and submit a recertification under paragraph (1)(B) to the Secretary at any time.

(3)

Compliant code

For the purposes of meeting the target described in subsection (a)(1)(A) for residential buildings, a State that adopts the code represented in California’s Title 24–2009 by the date two years after the date of enactment of the American Clean Energy and Security Act of 2009 shall be considered to have met the requirements of this subsection for the applicable period.

(d)

Application of national code to state and local jurisdictions

(1)

In general

Upon the expiration of 1 year after a national energy efficiency building code is established under subsection (b), in any jurisdiction where the State has not had a certification relating to that code accepted by the Secretary under subsection (c)(2)(B), and the local government has not had a certification relating to that code accepted by the Secretary under subsection (e)(6)(B), the national code shall become the applicable energy efficiency building code for such jurisdiction.

(2)

State Legislative Adoption

In a State in which the relevant building energy code is adopted legislatively, the deadline in paragraph (1) shall not be earlier than 1 year after the first day that the legislature meets following establishment of a national energy efficiency building code.

(3)

Violations

It shall be a violation of this section for an owner or builder of a building to knowingly occupy, permit occupancy of, or convey the building if the building is subject to the requirements of—

(A)

a State energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (c)(2)(B);

(B)

a local energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (e)(6)(B); or

(C)

a national energy efficiency building code adopted under subsection (c)(1)(A)(i) or made applicable under paragraph (1) of this subsection,

if the building was constructed out of compliance with such code.
(e)

State enforcement of energy efficiency building codes

(1)

In general

Each State, or where applicable under State law each local government, shall implement and enforce applicable State or local codes with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B) or paragraph (6)(B) of this subsection, or the national energy efficiency building codes, as provided in this subsection.

(2)

State certification

Not later than 2 years after the date of a certification under subsection (c)(1) or the establishment of a national energy efficiency building code under subsection (b), each State shall certify that it has—

(A)

achieved compliance with—

(i)

State codes, or, as provided under State law, local codes, with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B); or

(ii)

the national energy efficiency building code, as applicable; or

(B)

for any certification submitted within 7 years after the date of enactment of the American Clean Energy and Security Act of 2009, made significant progress toward achieving such compliance.

(3)

Achieving compliance

A State shall be considered to achieve compliance with a code described in paragraph (2)(A) if at least 90 percent of new and substantially renovated building space in that State in the preceding year upon inspection meets the requirements of the code. A certification under paragraph (2) shall include documentation of the rate of compliance based on—

(A)

independent inspections of a random sample of the new and substantially renovated buildings covered by the code in the preceding year; or

(B)

an alternative method that yields an accurate measure of compliance as determined by the Secretary.

(4)

Significant progress

A State shall be considered to have made significant progress toward achieving compliance with a code described in paragraph (2)(A) if—

(A)

the State has developed a plan, including for hiring enforcement staff, providing training, providing manuals and checklists, and instituting enforcement programs, designed to achieve full compliance within 5 years after the date of the adoption of the code;

(B)

the State is taking significant, timely, and measurable action to implement that plan;

(C)

the State has not reduced its expenditures for code enforcement; and

(D)

at least 50 percent of new and substantially renovated building space in the State in the preceding year upon inspection meets the requirements of the code.

(5)

Secretary’s determination

Not later than 90 days after a State certification under paragraph (2), the Secretary shall determine whether the State has demonstrated that it has complied with the requirements of this subsection, including accurate measurement of compliance, or that it has made significant progress toward compliance. If such determination is positive, the Secretary shall accept the certification. If the determination is negative, the Secretary shall identify the areas of deficiency.

(6)

Out of compliance

(A)

In general

Any State for which the Secretary has not accepted a certification under paragraph (5) by a deadline established under this subsection is out of compliance with this section.

(B)

Local compliance

In any State that is out of compliance with this section as provided in subparagraph (A), a local government may be in compliance with this section by meeting all certification requirements applicable to the State.

(C)

Noncompliance

Any State that is not in compliance with this section, as provided in subparagraph (A), shall, until the State regains such compliance, be ineligible to receive—

(i)

emission allowances pursuant to subsection (h)(1);

(ii)

Federal funding in excess of that State’s share (calculated according to the allocation formula in section 363 of the Energy Policy and Conservation Act (42 U.S.C. 6323)) of $125,000,000 each year; and

(iii)

for—

(I)

the first year for which the State is out of compliance, 25 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;

(II)

the second year for which the State is out of compliance, 50 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;

(III)

the third year for which the State is out of compliance, 75 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009; and

(IV)

the fourth and subsequent years for which the State is out of compliance, 100 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009.

(f)

Federal enforcement

Where a State fails and local governments in that State also fail to enforce the applicable State or national energy efficiency building codes, the Secretary shall enforce such codes, as follows:

(1)

The Secretary shall establish, by rule, within 2 years after the date of enactment of the American Clean Energy and Security Act of 2009, an energy efficiency building code enforcement capability.

(2)

Such enforcement capability shall be designed to achieve 90 percent compliance with such code in any State within 1 year after the date of the Secretary’s determination that such State is out of compliance with this section.

(3)

The Secretary may set and collect reasonable inspection fees to cover the costs of inspections required for such enforcement. Revenue from fees collected shall be available to the Secretary to carry out the requirements of this section upon appropriation.

(g)

Enforcement procedures

(1)

The Secretary shall assess a civil penalty for violations of this section, pursuant to subsection (d)(3), in accordance with the procedures described in section 333(d) of the Energy Policy and Conservation Act (42 U.S.C. 6303). The United States district courts shall also have jurisdiction to restrain any violation of this section or rules adopted thereunder, in accordance with the procedures described in section 334 of the Energy Policy and Conservation Act (42 U.S.C. 6304).

(2)

Each day of unlawful occupancy shall be considered a separate violation.

(3)

In the event a building constructed out of compliance with the applicable code has been conveyed by a knowing builder or knowing seller to an unknowing purchaser, the builder or seller shall be the violator.

(h)

Federal support

(1)

Allowance allocation for state compliance

Not later than June 1, 2011, and on that date in each year thereafter, the Administrator shall provide emission allowances to the SEED Account for each State that the Secretary identifies as a State from which he has accepted the State’s certification under subsection (e)(5) for compliance with the then current national energy efficiency building codes. Such allowances shall be distributed from an amount of 0.5 percent of the allowances made available for each year pursuant to the American Clean Energy and Security Act of 2009 to each State in accordance with 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 allocation.

(2)

Allowance allocation to local governments

In the instance that the Secretary certifies that one or more local governments are in compliance with this section pursuant to subsection (e)(6)(B), the Administrator shall provide to each such local government the portion of the emission allowances that would have been provided to that State as a function of the population of that locality as a proportion of the population of that State as a whole.

(3)

Unallocated allowances

To the extent that allowances are not provided to State or local governments for lack of certification in any year, those allowances shall be added to the amount provided to those States and local governments that are certified as eligible in that year.

(4)

Use of allowances

Each State or each local government shall use such emission allowances as it receives pursuant to this section exclusively for the purposes of this section, including covering a reasonable portion of the costs of the development, adoption, implementation, and enforcement of a State or local energy efficiency building code with respect to which a certification is accepted by the Secretary under subsection (c)(2)(B) or subsection (e)(6)(B), or the national energy efficiency building code.

(i)

Annual reports by secretary

The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on—

(1)

the status of national building energy efficiency codes;

(2)

the status of energy efficiency building code adoption and compliance in the States;

(3)

the implementation of this section; and

(4)

impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings, including resulting energy and cost savings.

.

202.

Building retrofit program

(a)

Definitions

For purposes of this section:

(1)

Nonresidential building

The term nonresidential building means a building with a primary use or purpose other than residential housing, including commercial offices, schools, academic and other public and private institutions, nonprofit organizations, hospitals, hotels, and houses of worship. Such buildings shall include mixed-use properties used for both residential and nonresidential purposes in which more than half of building floor space is nonresidential.

(2)

Performance-based building retrofit program

The term performance-based building retrofit program means a program that determines building energy efficiency success based on actual measured savings after a retrofit is complete, as evidenced by energy invoices or evaluation protocols.

(3)

Prescriptive building retrofit program

The term prescriptive building retrofit program means a program that projects building retrofit energy efficiency success based on the known effectiveness of measures prescribed to be included in a retrofit.

(4)

Recommissioning; retrocommissioning

The terms recommissioning and retrocommissioning have the meaning given those terms in section 543(f)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(f)(1)).

(5)

Residential building

The term residential building means a building whose primary use is residential. Such buildings shall include single-family homes (both attached and detached), owner-occupied units in larger buildings with their own dedicated space-conditioning systems, and buildings used for both residential and nonresidential purposes in which more than half of building floor space is residential.

(6)

State Energy Program

The term State Energy Program means the program under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).

(b)

Establishment

The Administrator shall develop and implement, in consultation with the Secretary of Energy, standards for a national energy and environmental building retrofit policy for single-family and multifamily residences. The Administrator shall develop and implement, in consultation with the Secretary of Energy and the Director of Commercial High-Performance Green Buildings, standards for a national energy and environmental building retrofit policy for nonresidential buildings. The programs to implement the residential and nonresidential policies based on the standards developed under this section shall together be known as the Retrofit for Energy and Environmental Performance (REEP) program.

(c)

Purpose

The purpose of the REEP program is to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes.

(d)

Federal Administration

(1)

Existing programs

In creating and operating the REEP program—

(A)

the Administrator shall make appropriate use of existing programs, including the Energy Star program and in particular the Environmental Protection Agency Energy Star for Buildings program; and

(B)

the Secretary of Energy shall make appropriate use of existing programs, including delegating authority to the Director of Commercial High-Performance Green Buildings appointed under section 421 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17081), who shall designate and provide funding to support a high-performance green building partnership consortium pursuant to subsection (f) of such section to support efforts under this section.

(2)

Consultation and coordination

The Administrator and the Secretary of Energy shall consult with and coordinate with the Secretary of Housing and Urban Development in carrying out the REEP program.

(3)

Allocation of allowances

The Administrator shall support the REEP program by providing emission allowances to each State’s SEED Account for the purposes of the program, and providing, as appropriate, emission allowances to a local government entity that carries out the purposes of this section in the absence of a State program. The Administrator shall support administration of the program through such existing State and local agencies or entities, including those regulated by the State, that the State designates to carry out the purposes of this section. The Administrator shall ensure accountability for allowances dispensed, and shall confirm measurement and verification of energy, water, and environmental savings achieved.

(4)

Assistance

The Administrator and the Secretary of Energy shall provide consultation and assistance to State and local agencies for the establishment of revolving loan funds, loan guarantees, or other forms of financial assistance under this section.

(e)

State and Local Administration

(1)

Delegation

The designated State agency, agencies, or entities described in subsection (d)(3) may delegate performance of appropriate elements of the REEP program, upon their request and subject to State law, to counties, municipalities, appropriate public agencies, and other divisions of local government, as well as to entities regulated by the State. In making any such delegation, a State shall give priority to entities that administer existing comprehensive retrofit programs, including those under the supervision of State utility regulators. The State shall ensure accountability for the use of allowances provided under this section, and to the extent such allowances are sold by the State, for the proceeds. States shall maintain responsibility for meeting the standards and requirements of the REEP program. In any State that elects not to administer the REEP program, a unit of local government may propose to do so within its jurisdiction, and if the Administrator finds that such local government is capable of administering the program, the Administrator may provide allowances to that local government, prorated according to the population of the local jurisdiction relative to the population of the State, for purposes of the REEP program.

(2)

Employment

States and local government entities may administer a REEP program in a manner that authorizes public or regulated investor-owned utilities, building auditors and inspectors, contractors, nonprofit organizations, for-profit companies, and other entities to perform audits and retrofit services under this section. A State may provide incentives for retrofits without direct participation by the State or its agents, so long as the resulting savings are measured and verified. A State or local administrator of a REEP program shall seek to ensure that sufficient qualified entities are available to support retrofit activities so that building owners have a competitive choice among qualified auditors, raters, contractors, and providers of services related to retrofits. Nothing in this section is intended to preclude or preempt the right of a building owner to choose the specific providers of retrofit services to engage for a retrofit project in that owner’s building.

(3)

Equal incentives for equal improvement

In general, the States should strive to offer the same levels of incentives for retrofits that meet the same efficiency improvement goals, regardless of whether the State, its agency or entity, or the building owner has conducted the retrofit achieving the improvement, provided the improvement is measured and verified.

(f)

Elements of REEP Program

The Administrator, in consultation with the Secretary of Energy, shall establish goals, guidelines, practices, and standards for accomplishing the purpose stated in subsection (c), and shall annually review and, as appropriate, revise such goals, guidelines, practices, and standards. The program under this section shall include the following:

(1)

Residential Energy Services Network (RESNET) or Building Performance Institute (BPI) analyst certification of residential building energy and environment auditors, inspectors, and raters, or an equivalent certification system as determined by the Administrator.

(2)

BPI certification or licensing by States of residential building energy and environmental retrofit contractors, or an equivalent certification or licensing system as determined by the Administrator.

(3)

Provision of BPI, RESNET, or other appropriate information on equipment and procedures, as determined by the Administrator, that contractors can use to test the energy and environmental efficiency of buildings effectively (such as infrared photography and pressurized testing, and tests for water use and indoor air quality).

(4)

Provision of clear and effective materials to describe the testing and retrofit processes for typical buildings.

(5)

Guidelines for offering and managing prescriptive building retrofit programs and performance-based building retrofit programs for residential and nonresidential buildings.

(6)

Guidelines for applying recommissioning and retrocommissioning principles to improve a building’s operations and maintenance procedures.

(7)

A requirement that building retrofits conducted pursuant to a REEP program utilize, especially in all air-conditioned buildings, roofing materials with high solar energy reflectance, unless inappropriate due to green roof management, solar energy production, or for other reasons identified by the Administrator, in order to reduce energy consumption within the building, increase the albedo of the building’s roof, and decrease the heat island effect in the area of the building.

(8)

Determination of energy savings in a performance-based building retrofit program through—

(A)

for residential buildings, comparison of before and after retrofit scores on the Home Energy Rating System (HERS) Index, where the final score is produced by an objective third party;

(B)

for nonresidential buildings, Environmental Protection Agency Portfolio Manager benchmarks; or

(C)

for either residential or nonresidential buildings, use of an Administrator-approved simulation program by a contractor with the appropriate certification, subject to appropriate software standards and verification of at least 15 percent of all work done, or such other percentage as the Administrator may determine.

(9)

Guidelines for utilizing the Energy Star Portfolio Manager, the Home Energy Rating System (HERS) rating system, Home Performance with Energy Star program approvals, and any other tools associated with the retrofit program.

(10)

Requirements and guidelines for post-retrofit inspection and confirmation of work and energy savings.

(11)

Detailed descriptions of funding options for the benefit of State and local governments, along with model forms, accounting aids, agreements, and guides to best practices.

(12)

Guidance on opportunities for—

(A)

rating or certifying retrofitted buildings as Energy Star buildings, or as green buildings under a recognized green building rating system;

(B)

assigning Home Energy Rating System (HERS) or similar ratings; and

(C)

completing any applicable building performance labels.

(13)

Sample materials for publicizing the program to building owners, including public service announcements and advertisements.

(14)

Processes for tracking the numbers and locations of buildings retrofitted under the REEP program, with information on projected and actual savings of energy and its value over time.

(g)

Requirements

As a condition of receiving allowances for the REEP program pursuant to this Act, a State or qualifying local government shall—

(1)

adopt the standards for training, certification of contractors, certification of buildings, and post-retrofit inspection as developed by the Administrator for residential and nonresidential buildings, respectively, except as necessary to match local conditions, needs, efficiency opportunities, or other local factors, or to accord with State laws or regulations, and then only after the Administrator approves such a variance; and

(2)

establish fiscal controls and accounting procedures (which conform to generally accepted government accounting principles) sufficient to ensure proper accounting during appropriate accounting periods for payments received and disbursements, and for fund balances.

The Administrator shall conduct or require each State to have such independent financial audits of REEP-related funding as the Administrator considers necessary or appropriate to carry out the purposes of this section.
(h)

Options To Support REEP Program

The emission allowances provided pursuant to this Act to the States’ SEED Accounts shall support the implementation through State REEP programs of alternate means of creating incentives for, or reducing financial barriers to, improved energy and environmental performance in buildings, consistent with this section, including—

(1)

implementing prescriptive building retrofit programs and performance-based building retrofit programs;

(2)

providing credit enhancement, interest rate subsidies, loan guarantees, or other credit support;

(3)

providing initial capital for public revolving fund financing of retrofits, with repayments by beneficiary building owners over time through their tax payments, calibrated to create net positive cash flow to the building owner;

(4)

providing funds to support utility-operated retrofit programs with repayments over time through utility rates, calibrated to create net positive cash flow to the building owner, and transferable from one building owner to the next with the building’s utility services;

(5)

providing funds to local government programs to provide REEP services and financial assistance; and

(6)

other means proposed by State and local agencies, subject to the approval of the Administrator.

(i)

Support for program

(1)

Use of allowances

The REEP program shall be supported by the use of emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement elements of the REEP Program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(2)

Initial award limits

Except as provided in paragraph (3), State and local REEP programs may make per-building direct expenditures for retrofit improvements, or their equivalent in indirect or other forms of financial support, from funds derived from the sale of allowances received directly from the Administrator in amounts not to exceed the following:

(A)

Residential building program

(i)

Awards

For residential buildings—

(I)

support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $200, in addition to any earned by achieving a 20 percent or greater efficiency improvement;

(II)

a total of $1,000 for a combination of measures, prescribed in an audit conducted under subclause (I), designed to reduce energy consumption by more than 10 percent, and $2,000 for a combination of measures prescribed in such an audit, designed to reduce energy consumption by more than 20 percent;

(III)

$3,000 for demonstrated savings of 20 percent, pursuant to a performance-based building retrofit program; and

(IV)

$1,000 for each additional 5 percentage points of energy savings achieved beyond savings for which funding is provided under subclause (II) or (III).

Funding shall not be provided under clauses (II) and (III) for the same energy savings.
(ii)

Maximum percentage

Awards under clause (i) shall not exceed 50 percent of retrofit costs for each building. For buildings with multiple residential units, awards under clause (i) shall not be greater than 50 percent of the total cost of retrofitting the building, prorated among individual residential units on the basis of relative costs of the retrofit.

(iii)

Additional awards

Additional awards may be provided for purposes of increasing energy efficiency, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), in the form of grants of not more than $600 for measures projected or measured (using an appropriate method approved by the Administrator) to achieve at least 35 percent potable water savings through equipment or systems with an estimated service life of not less than seven years, and not more than an additional $20 may be provided for each additional one percent of such savings, up to a maximum total grant of $1,200.

(B)

Nonresidential building program

(i)

Awards

For nonresidential buildings—

(I)

support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $500, in addition to any award earned by achieving a 20 percent or greater efficiency improvement;

(II)

$0.15 per square foot of retrofit area for demonstrated energy use reductions from 20 percent to 30 percent;

(III)

$0.75 per square foot for demonstrated energy use reductions from 30 percent to 40 percent;

(IV)

$1.60 per square foot for demonstrated energy use reductions from 40 percent to 50 percent; and

(V)

$2.50 per square foot for demonstrated energy use reductions exceeding 50 percent.

(ii)

Maximum percentage

Amounts provided under subclauses (II) through (V) of clause (i) combined shall not exceed 50 percent of the total retrofit cost of a building. In nonresidential buildings with multiple units, such awards shall be prorated among individual units on the basis of relative costs of the retrofit.

(iii)

Additional awards

Additional awards may be provided, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), as follows:

(I)

Water

For purposes of increasing energy efficiency, grants may be made for whole building potable water use reduction (using an appropriate method approved by the Secretary of Energy) for up to 50 percent of the total retrofit cost, including amounts up to—

(aa)

$24.00 per thousand gallons per year of potable water savings of 40 percent or more;

(bb)

$27.00 per thousand gallons per year of potable water savings of 50 percent or more; and

(cc)

$30.00 per thousand gallons per year of potable water savings of 60 percent or more.

(II)

Environmental improvements

Additional awards of up to $1,000 may be granted for the inclusion of other environmental attributes that the Secretary, in consultation with the Administrator, identifies as contributing to energy efficiency. Such attributes may include, but are not limited to waste diversion and the use of environmentally preferable materials (including salvaged, renewable, or recycled materials, and materials with no or low-VOC content). The Administrator may recommend that States develop such standards as are necessary to account for local or regional conditions that may affect the feasibility or availability of identified resources and attributes.

(iv)

Indoor air quality minimum

Nonresidential buildings receiving incentives under this section must satisfy at a minimum the most recent version of ASHRAE Standard 62.1 for ventilation, or the equivalent as determined by the Administrator. A State may issue a waiver from this requirement to a building project on a showing that such compliance is infeasible due to the physical constraints of the building’s existing ventilation system, or such other limitations as may be specified by the Administrator.

(C)

Historic buildings

Notwithstanding subparagraphs (A) and (B), a building in or eligible for the National Register of Historic Places shall be eligible for awards under this paragraph in amounts up to 120 percent of the amounts set forth in subparagraphs (A) and (B).

(D)

Supplemental support

State and local governments may supplement the per-building expenditures under this paragraph with funding from other sources.

(3)

Adjustment

The Administrator may adjust the specific dollar limits funded by the sale of allowances pursuant to paragraph (2) in years subsequent to the second year after the date of enactment of this Act, and every 2 years thereafter, as the Administrator determines necessary to achieve optimum cost-effectiveness and to maximize incentives to achieve energy efficiency within the total building award amounts provided in that paragraph, and shall publish and hold constant such revised limits for at least 2 years.

(j)

Report to congress

The Administrator shall conduct an annual assessment of the achievements of the REEP program in each State, shall prepare an annual report of such achievements and any recommendations for program modifications, and shall provide such report to Congress at the end of each fiscal year during which funding or other resources were made available to the States for the REEP Program.

(k)

Other sources of Federal support

(1)

Additional State Energy Program funds

Any Federal funding provided to a State Energy Program that is not required to be expended for a different federally designated purpose may be used to support a REEP program.

(2)

Program administration

State Energy Offices or designated State agencies may expend up to 10 percent of available funding provided under this section for program administration.

(3)

Authorization of appropriations

There are authorized to be appropriated for the purposes of this section, for each of fiscal years 2010, 2011, 2012, and 2013—

(A)

$50,000,000 to the Administrator for program administration costs; and

(B)

$20,000,000 to the Secretary of Energy for program administration costs.

203.

Energy efficient manufactured homes

(a)

Definitions

In this section:

(1)

Manufactured Home

The term manufactured home has the meaning given such term in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).

(2)

Energy Star qualified manufactured home

The term Energy Star qualified manufactured home means a manufactured home that has been designed, produced, and installed in accordance with Energy Star's guidelines by an Energy Star certified plant.

(b)

Purpose

The purpose of this section is to assist low-income households residing in manufactured homes constructed prior to 1976 to save energy and energy expenditures by providing support toward the purchase of new Energy Star qualified manufactured homes.

(c)

State implementation of program

(1)

Manufactured home replacement program

Any State may provide to the owner of a manufactured home constructed prior to 1976 a rebate to use toward the purchase of a new Energy Star qualified manufactured home pursuant to this section.

(2)

Use of allowances

The program established in this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts pursuant to section 782 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(3)

Rebates

(A)

Primary Residence Requirement

A rebate described under paragraph (1) may only be made to an owner of a manufactured home constructed prior to 1976 that is used on a year-round basis as a primary residence.

(B)

Dismantling and replacement

A rebate described under paragraph (1) may be made only if the manufactured home constructed prior to 1976 will be—

(i)

rendered unusable for human habitation (including appropriate recycling); and

(ii)

replaced, in the same general location, as determined by the applicable State agency, with an Energy Star qualified manufactured home.

(C)

Single rebate

A rebate described under paragraph (1) may not be provided to any owner of a manufactured home constructed prior to 1976 that was or is a member of a household for which any other member of the household was provided a rebate pursuant to this section.

(D)

Eligible households

To be eligible to receive a rebate described under paragraph (1), an owner of a manufactured home constructed prior to 1976 shall demonstrate to the applicable State agency that the total income of all members the owner’s household does not exceed 200 percent of the Federal poverty level for income in the applicable area.

(E)

Advance availability

A rebate may be provided under this section in a manner to facilitate the purchase of a new Energy Star qualified manufactured home.

(4)

Rebate limitation

Rebates provided by States under this section shall not exceed $7,500 per manufactured home from any value derived from the use of emission allowances provided to the State pursuant to section 132.

(5)

Use of State funds

A State providing rebates under this section may supplement the amount of such rebates under paragraph (4) by any additional amount is from State funds and other sources, including private donations or grants from charitable organizations.

(6)

Coordination with similar programs

(A)

State programs

A State conducting an existing program that has the purpose of replacing manufactured homes constructed prior to 1976 with Energy Star qualified manufactured homes, may use allowance value provided under section 782 to support such a program, provided such funding does not exceed the rebate limitation amount under paragraph (4).

(B)

Federal programs

The Secretary of Energy shall coordinate with and seek to achieve the purpose of this section through similar Federal programs including—

(i)

the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); and

(ii)

the program under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).

(C)

Coordination with other State agencies

A State agency using allowance value to administer the program under this section may coordinate its efforts, and share funds for administration, with other State agencies involved in low-income housing programs.

(7)

Administrative expenses

A State using allowance value under this section may expend not more than 10 percent of such value for administrative expenses related to this program.

204.

Building energy performance labeling program

(a)

Establishment

(1)

Purpose

The Administrator shall establish a building energy performance labeling program with broad applicability to the residential and commercial markets to enable and encourage knowledge about building energy performance by owners and occupants and to inform efforts to reduce energy consumption nationwide.

(2)

Components

In developing such program, the Administrator shall—

(A)

consider existing programs, such as Environmental Protection Agency’s Energy Star program, the Home Energy Rating System (HERS) Index, and programs at the Department of Energy;

(B)

support the development of model performance labels for residential and commercial buildings; and

(C)

utilize incentives and other means to spur use of energy performance labeling of public and private sector buildings nationwide.

(b)

Data assessment for building energy performance

(1)

Initial report

Not later than 90 days after the date of enactment of this Act, the Administrator shall provide to Congress, as well as to the Secretary of Energy and the Office of Management and Budget, a report identifying—

(A)

all principal building types for which statistically significant energy performance data exists to serve as the basis of measurement protocols and labeling requirements for achieved building energy performance; and

(B)

those building types for which additional data are required to enable the development of such protocols and requirements.

(2)

Additional reports

Additional updated reports shall be provided under this subsection as often as The Administrator considers practicable, but not less than every 2 years.

(c)

Building data acquisition

(1)

Resource requirements

For all principal building types identified under subsection (b), the Secretary of Energy, not later than 90 days after a report by the Administrator under subsection (b), shall provide to Congress, the Administrator, and the Office of Management and Budget a statement of additional resources needed, if any, to fully develop the relevant data, as well as the anticipated timeline for data development.

(2)

Consultation

The Secretary of Energy shall consult with the Administrator concerning the Administrator’s ability to use data series for these additional building types to support the achieved performance component in the labeling program.

(3)

Improvements to building energy consumption databases

(A)

Commercial database

The Secretary of Energy shall support improvements to the Commercial Buildings Energy Consumption Survey (CBECS) as authorized by section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k))—

(i)

to enable complete and robust data for the actual energy performance of principal building types currently covered by survey;

(ii)

to cover additional building types as identified by the Administrator under subsection (e)(1)(B), to enable the development of achieved performance measurement protocols are developed for at least 90 percent of all major commercial building types within 5 years after the date of enactment of this Act; and

(iii)

to include third-party audits of random data samplings to ensure the quality and accuracy of survey information.

(B)

Residential databases

The Administrator, in consultation with the Energy Information Administration and the Secretary of Energy, shall support improvements to the Residential Energy Consumption Survey (RECS) as authorized by section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k)), or such other residential energy performance databases as the Administrator considers appropriate, to aid the development of achieved performance measurement protocols for residential building energy use for at least 90 percent of the residential market within 5 years after the date of enactment of this Act.

(C)

Consultation

The Secretary of Energy and the Administrator shall consult with public, private, and nonprofit sector representatives from the building industry and real estate industry to assist in the evaluation and improvement of building energy performance databases and labeling programs.

(d)

Identification of measurement protocols for achieved performance

(1)

Proposed protocols and requirements

At the earliest practicable date, but not later than 1 year after identifying a building type under subsection (b)(1)(A), the Administrator shall propose a measurement protocol for that building type and a requirement detailing how to use that protocol in completing applicable commercial or residential performance labels created pursuant to this section.

(2)

Final rule

After providing for notice and comment, the Administrator shall publish a final rule containing a measurement protocol and the corresponding requirements for applying that protocol. Such a rule—

(A)

shall define the minimum period for measurement of energy use by buildings of that type and other details for determining achieved performance, to include leased buildings or parts thereof;

(B)

shall identify necessary data collection and record retention requirements; and

(C)

may specify transition rules and exemptions for classes of buildings within the building type.

(e)

Procedures for evaluating designed performance

The Administrator shall develop protocols for evaluating the designed performance of individual building types. The Administrator may conduct such feasibility studies and demonstration projects as are necessary to evaluate the sufficiency of proposed protocols for designed performance.

(f)

Creation of building energy performance labeling program

(1)

Model label

Not later than 1 year after the date of enactment of this Act, the Administrator shall propose a model building energy label that provides a format—

(A)

to display achieved performance and designed performance data;

(B)

that may be tailored for residential and commercial buildings, and for single-occupancy and multitenanted buildings; and

(C)

to display other appropriate elements identified during the development of measurement protocols under subsections (d) and (e).

(2)

Inclusions

Nothing in this section shall require the inclusion on such a label of designed performance data where impracticable or not cost effective, or to preclude the display of both achieved performance and designed performance data for a particular building where both such measures are available, practicable, and cost effective.

(3)

Existing programs

In developing the model label, the Administrator shall consider existing programs, including—

(A)

the Environmental Protection Agency’s Energy Star Portfolio Manager program and the California HERS II Program Custom Approach for the achieved performance component of the label;

(B)

the Home Energy Rating System (HERS) Index system for the designed performance component of the label; and

(C)

other Federal and State programs, including the Department of Energy’s related programs on building technologies and those of the Federal Energy Management Program.

(4)

Final rule

After providing for notice and comment, the Administrator shall publish a final rule containing the label applicable to covered building types.

(g)

Demonstration projects for labeling program

(1)

In general

The Administrator shall conduct building energy performance labeling demonstration projects for different building types—

(A)

to ensure the sufficiency of the current Commercial Buildings Energy Consumption Survey and other data to serve as the basis for new measurement protocols for the achieved performance component of the building energy performance labeling program;

(B)

to inform the development of measurement protocols for building types not currently covered by the Commercial Buildings Energy Consumption Survey; and

(C)

to identify any additional information that needs to be developed to ensure effective use of the model label.

(2)

Participation

Such demonstration projects shall include participation of—

(A)

buildings from diverse geographical and climate regions;

(B)

buildings in both urban and rural areas;

(C)

single-family residential buildings;

(D)

multihousing residential buildings with more than 50 units, including at least one project that provides affordable housing to individuals of diverse incomes;

(E)

single-occupant commercial buildings larger than 30,000 square feet;

(F)

multitenanted commercial buildings larger than 50,000 square feet; and

(G)

buildings from both the public and private sectors.

(3)

Priority

Priority in the selection of demonstration projects shall be given to projects that facilitate large-scale implementation of the labeling program for samples of buildings across neighborhoods, geographic regions, cities, or States.

(4)

Findings

The Administrator shall report any findings from demonstration projects under this subsection, including an identification of any areas of needed data improvement, to the Department of Energy’s Energy Information Administration and Building Technologies Program.

(5)

Coordination

The Administrator and the Secretary of Energy shall coordinate demonstration projects undertaken pursuant to this subsection with those undertaken as part of the Zero-Net-Energy Commercial Buildings Initiative adopted under section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082).

(h)

Implementation of labeling program

(1)

In general

The Administrator, in consultation with the Secretary of Energy, shall work with all State Energy Offices established pursuant to part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) or other State authorities as necessary for the purpose of implementing the labeling program established under this section for commercial and residential buildings.

(2)

Outreach to local authorities

The Administrator shall, acting in consultation and coordination with the respective States, encourage use of the labeling program by counties and other localities to broaden access to information about building energy use, for example, through disclosure of building label contents in tax, title, and other records those localities maintain. For this purpose, the Administrator shall develop an electronic version of the label and information that can be readily transmitted and read in widely available computer programs but is protected from unauthorized manipulation.

(3)

Means of implementation

In adopting the model labeling program established under this section, a State shall seek to ensure that labeled information be made accessible to the public in a manner so that owners, lenders, tenants, occupants, or other relevant parties can utilize it. Such accessibility may be accomplished through—

(A)

preparation, and public disclosure of the label through filing with tax and title records at the time of—

(i)

a building audit conducted with support from Federal or State funds;

(ii)

a building energy-efficiency retrofit conducted in response to such an audit;

(iii)

a final inspection of major renovations or additions made to a building in accordance with a building permit issued by a local government entity;

(iv)

a sale that is recorded for title and tax purposes consistent with subsection (h)(8) of this section;

(v)

a new lien recorded on the property for more than a set percentage of the assessed value of the property, if that lien reflects public financial assistance for energy-related improvements to that building; or

(vi)

a change in ownership or operation of the building for purposes of utility billing; or

(B)

other appropriate means.

(4)

State implementation of program

(A)

Eligibility

A State may become eligible to utilize allowance value to implement this program by—

(i)

adopting by statute or regulation a requirement that buildings be assessed and labeled, consistent with the labeling requirements of the program established under this section; or

(ii)

adopting a plan to implement a model labeling program consistent with this section within one year of enactment of this Act, including the establishment of that program within 3 years after the date of enactment of this Act, and demonstrating continuous progress under that plan.

(B)

Use of allowances

The program established in this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.

(5)

Guidance

The Administrator may create or identify model programs and resources to provide guidance to offer to States and localities for creating labeling programs consistent with the model program established under this section.

(6)

Progress report

The Administrator, in consultation with the Secretary of Energy, shall provide a progress report to Congress not later than 3 years after the date of enactment of this Act that—

(A)

evaluates the effectiveness of efforts to advance use of the model labeling program by States and localities;

(B)

recommends any legislative changes necessary to broaden the use of the model labeling program; and

(C)

identifies any changes to broaden the use of the model labeling program that the Administrator has made or intends to make that do not require additional legislative authority.

(7)

State information

The Administrator may require States to report to the Administrator information that the Administrator requires to provide the report required under paragraph (6).

(8)

Prevention of disruption of sales transactions

No State shall implement a new labeling program pursuant to this section in a manner that requires the labeling of a building to occur after a contract has been executed for the sale of that building and before the sales transaction is completed.

(i)

Implementation of labeling program in Federal buildings

(1)

Use of labeling program

The Secretary of Energy and the Administrator shall use the labeling program established under this section to evaluate energy performance in the facilities of the Department of Energy and the Environmental Protection Agency, respectively, to the extent practicable, and shall encourage and support implementation efforts in other Federal agencies.

(2)

Annual progress report

The Secretary of Energy and Administrator shall provide an annual progress report to Congress and the Office of Management and Budget detailing efforts to implement this subsection, as well as any best practices or needed resources identified as a result of such efforts.

(j)

Public outreach

The Secretary of Energy and the Administrator, in consultation with nonprofit and industry stakeholders with specialized expertise, and in conjunction with other energy efficiency public awareness efforts, shall establish a business and consumer education program to increase awareness about the importance of building energy efficiency and to facilitate widespread use of the labeling program established under this section.

(k)

Definitions

In this section:

(1)

Building type

The term building type means a grouping of buildings as identified by their principal building activities, or as grouped by their use, including office buildings, laboratories, libraries, data centers, retail establishments, hotels, warehouses, and educational buildings.

(2)

Measurement protocol

The term measurement protocol means the methodology, prescribed by the Administrator, for defining a benchmark for building energy performance for a specific building type and for measuring that performance against the benchmark.

(3)

Achieved Performance

The term achieved performance means the actual energy consumption of a building as compared to a baseline building of the same type and size, determined by actual consumption data normalized for appropriate variables.

(4)

Designed performance

The term designed performance means the energy consumption performance a building would achieve if operated consistent with its design intent for building energy use, utilizing a standardized set of operational conditions informed by data collected or confirmed during an energy audit.

(l)

Authorization of appropriations

There are authorized to be appropriated—

(1)

to the Administrator $50,000,000 for implementation of this section for each fiscal year from 2010 through 2020; and

(2)

to the Secretary of Energy $20,000,000 for implementation of this section for fiscal year 2010 and $10,000,000 for fiscal years 2011 through 2020.

B

Lighting and Appliance Energy Efficiency Programs

211.

Lighting efficiency standards

(a)

Outdoor lighting

(1)

Definitions

(A)

Section 340(1) of the Energy Policy and Conservation Act (42 U.S.C. 6311(1)) is amended by striking subparagraph (L) and inserting the following:

(L)

Outdoor luminaires.

(M)

Outdoor high light output lamps.

(N)

Any other type of industrial equipment which the Secretary classifies as covered equipment under section 341(b).

.

(B)

Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended as adding at the end the following:

(25)

The term luminaire means a complete lighting unit consisting of one or more light sources and ballast(s), together with parts designed to distribute the light, to position and protect such lamps, and to connect such light sources to the power supply.

(26)

The term outdoor luminaire means a luminaire that is listed as suitable for wet locations pursuant to Underwriters Laboratories Inc. standard UL 1598 and is labeled as Suitable for Wet Locations consistent with section 410.4(A) of the National Electrical Code 2005, or is designed for roadway illumination and meets the requirements of Addendum A for IESNA TM–15–07: Backlight, Uplight, and Glare (BUG) Ratings, except for—

(A)

luminaires designed for outdoor video display images that cannot be used in general lighting applications;

(B)

portable luminaires designed for use at construction sites;

(C)

luminaires designed for continuous immersion in swimming pools and other water features;

(D)

seasonal luminaires incorporating solely individual lamps rated at 10 watts or less;

(E)

luminaires designed to be used in emergency conditions that incorporate a means of charging a battery and a device to switch the power supply to emergency lighting loads automatically upon failure of the normal power supply;

(F)

components used for repair of installed luminaries and that meet the requirements of section 342(h);

(G)

a luminaire utilizing an electrode-less fluorescent lamp as the light source;

(H)

decorative gas lighting systems;

(I)

luminaires designed explicitly for lighting for theatrical purposes, including performance, stage, film production, and video production;

(J)

luminaires designed as theme elements in theme/amusement parks and that cannot be used in most general lighting applications;

(K)

luminaires designed explicitly for vehicular roadway tunnels designed to comply with ANSI/IESNA RP–22–05;

(L)

luminaires designed explicitly for hazardous locations meeting UL Standard 844;

(M)

searchlights;

(N)

luminaires that are designed to be recessed into a building, and that cannot be used in most general lighting applications;

(O)

a luminaire rated only for residential applications utilizing a light source or sources regulated under the amendments made by section 321 of the Energy Independence and Security Act of 2007 and with a light output no greater than 2,600 lumens;

(P)

a residential pole-mounted luminaire that is not rated for commercial use utilizing a light source or sources meeting the efficiency requirements of section 231 of the Energy Independence and Security Act of 2007 and mounted on a post or pole not taller than 10.5 feet above ground and with a light output not greater than 2.600 lumens;

(Q)

a residential fixture with E12 (Candelabra) bases that is rated for not more than 300 watts total; or

(R)

a residential fixture with medium screw bases that is rated for not more than 145 watts.

(27)

The term outdoor high light outputlamp means a lamp that—

(A)

has a rated lumen output not less than 2601 lumens;

(B)

is capable of being operated at a voltage not less than 110 volts and not greater than 300 volts, or driven at a constant current of 6.6 amperes;

(C)

is not a Parabolic Aluminized Reflector lamp; and

(D)

is not a J-type double-ended (T–3) halogen quartz lamp, utilizing R–7S bases, that is manufactured before January 1, 2015.

(28)

The term outdoor lighting control means a device incorporated in a luminaire that receives a signal, from either a sensor (such as an occupancy sensor, motion sensor, or daylight sensor) or an input signal (including analog or digital signals communicated through wired or wireless technology), and can adjust the light level according to the signal.

.

(2)

Standards

Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:

(g)

Outdoor luminaires

(1)

Each outdoor luminaire manufactured on or after January 1, 2011, shall—

(A)

have an initial luminaire efficacy of at least 50 lumens per watt; and

(B)

be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.

(2)

Each outdoor luminaire manufactured on or after January 1, 2013, shall—

(A)

have an initial luminaire efficacy of at least 70 lumens per watt; and

(B)

be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.

(3)

Each outdoor luminaire manufactured on or after January 1, 2015, shall—

(A)

have an initial luminaire efficacy of at least 80 lumens per watt; and

(B)

be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.65.

(4)

In addition to the requirements of paragraphs (1) through (3), each outdoor luminaire manufactured on or after January 1, 2011, shall have the capability of producing at least two different light levels, including 100 percent and 60 percent of full lamp output as tested with the maximum rated lamp per UL1598 or the manufacturer’s maximum specified for the luminaire under test.

(5)
(A)

Not later than January 1, 2017, the Secretary shall issue a final rule amending the applicable standards established in paragraphs (3) and (4) if technologically feasible and economically justified. Such a final rule shall be effective no later than January 1, 2020.

(B)

A final rule issued under subparagraph (A) shall establish efficiency standards at the maximum level that is technically feasible and economically justified, as provided in subsections (o) and (p) of section 325. The Secretary may also, in such rulemaking, amend or discontinue the product exclusions listed in section 340(26)(A) through (P), or amend the lumen maintenance requirements in paragraph (3) if the Secretary determines that such amendments are consistent with the purposes of this Act.

(C)

If the Secretary issues a final rule under subparagraph (A) establishing amended standards, the final rule shall provide that the amended standards apply to products manufactured on or after January 1, 2020, or one year after the date on which the final amended standard is published, whichever is later.

(h)

Outdoor high light output lamps

Each outdoor high light output lamp manufactured on or after January 1, 2012, shall have a lighting efficiency of at least 45 lumens per watt.

.

(3)

Test procedures

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

(10)

Outdoor lighting

(A)

With respect to outdoor luminaires and outdoor high light output lamps, the test procedures shall be based upon the test procedures specified in illuminating engineering society procedures LM–79 as of March 1, 2009, and LM–31, and/or other appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.

(B)

If illuminating engineering society procedure LM–79 is amended, the Secretary shall amend the test procedures established in subparagraph (A) as necessary to be consistent with the amended LM–79 test procedure, unless the Secretary determines, by rule, published in the Federal Register and supported by clear and convincing evidence, that to do so would not meet the requirements for test procedures under paragraph (2).

(C)

The Secretary may revise the test procedures for outdoor luminaires or outdoor high light output lamps by rule consistent with paragraph (2), and may incorporate as appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.

.

(4)

Preemption

Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) is amended by adding at the end the following:

(i)
(1)

Except as provided in paragraph (2), section 327 shall apply to outdoor luminaires to the same extent and in the same manner as the section applies under part B.

(2)

Any State standard that is adopted on or before January 1, 2015, pursuant to a statutory requirement to adopt efficiency standards for reducing outdoor lighting energy use enacted prior to January 31, 2008, shall not be preempted.

.

(5)

Energy efficiency standards for certain luminaires

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall, in consultation with the National Electrical Manufacturers Association, collect data for United States sales of luminaires described in section 340(26)(H) and (M) of the Energy Policy and Conservation Act, to determine the historical growth rate. If the Secretary finds that the growth in market share of such luminaires exceeds twice the year to year rate of the average of the previous three years, then the Secretary shall within 12 months initiate a rulemaking to determine if such exclusion should be eliminated, if substitute products exist that perform more efficiently and fulfill the performance functions of these luminaires.

(b)

Portable lighting

(1)

Portable light fixtures

(A)

Definitions

Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended by adding at the end the following:

(67)

Art work light fixture

The term art work light fixture means a light fixture designed only to be mounted directly to an art work and for the purpose of illuminating that art work.

(68)

LED light engine

The term LED light engine or LED light engine with integral heat sink means a subsystem of an LED light fixture that—

(A)

includes 1 or more LED components, including—

(i)

an LED driver power source with electrical and mechanical interfaces; and

(ii)

an integral heat sink to provide thermal dissipation; and

(B)

may be designed to accept additional components that provide aesthetic, optical, and environmental control.

(69)

LED light fixture

The term LED light fixture means a complete lighting unit consisting of—

(A)

an LED light source with 1 or more LED lamps or LED light engines; and

(B)

parts—

(i)

to distribute the light;

(ii)

to position and protect the light source; and

(iii)

to connect the light source to electrical power.

(70)

Light fixture

The term light fixture means a product designed to provide light that includes—

(A)

at least 1 lamp socket; and

(B)

parts—

(i)

to distribute the light;

(ii)

position and protect 1 or more lamps; and

(iii)

to connect 1 or more lamps to a power supply.

(71)

Portable light fixture

(A)

In general

The term portable light fixture means a light fixture that has a flexible cord and an attachment plug for connection to a nominal 120-volt circuit that—

(i)

allows the user to relocate the product without any rewiring; and

(ii)

typically can be controlled with a switch located on the product or the power cord of the product.

(B)

Exclusions

The term portable light fixture does not include—

(i)

direct plug-in night lights, sun or heat lamps, medical or dental lights, portable electric hand lamps, signs or commercial advertising displays, photographic lamps, germicidal lamps, or light fixtures for marine use or for use in hazardous locations (as those terms are defined in ANSI/NFPA 70 of the National Electrical Code); or

(ii)

decorative lighting strings, decorative lighting outfits, or electric candles or candelabra without lamp shades that are covered by Underwriter Laboratories (UL) standard 588, Seasonal and Holiday Decorative Products.

.

(B)

Coverage

(i)

In general

Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)) is amended—

(I)

by redesignating paragraph (20) as paragraph (24); and

(II)

by inserting after paragraph (19) the following:

(20)

Portable light fixtures.

.

(ii)

Conforming amendments

Section 325(l) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by striking paragraph (19) each place it appears in paragraphs (1) and (2) and inserting paragraph (21).

(C)

Test procedures

Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)) is amended by adding at the end the following:

(19)

LED fixtures and LED light engines

Test procedures for LED fixtures and LED light engines shall be based on Illuminating Engineering Society of North America (IESNA) test procedure LM–79, Approved Method for Electrical and Photometric Testing of Solid-State Lighting Devices, and IESNA-approved test procedure for testing LED light engines.

.

(D)

Standards

Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended—

(i)

by redesignating subsection (ii) as subsection (nn);

(ii)

in subsection (nn)(2), as redesignated in clause (i) of this subparagraph, by striking (hh) each place it appears and inserting (mm); and

(iii)

by inserting after subsection (hh) the following:

(ii)

Portable light fixtures

(1)

In general

Subject to paragraphs (2) and (3), portable light fixtures manufactured on or after January 1, 2012, shall meet 1 or more of the following requirements:

(A)

Be a fluorescent light fixture that meets the requirements of the Energy Star Program for Residential Light Fixtures, Version 4.2.

(B)

Be equipped with only 1 or more GU–24 line-voltage sockets, not be rated for use with incandescent lamps of any type (as defined in ANSI standards), and meet the requirements of version 4.2 of the Energy Star program for residential light fixtures.

(C)

Be an LED light fixture or a light fixture with an LED light engine and comply with the following minimum requirements:

(i)

Minimum light output: 200 lumens (initial).

(ii)

Minimum LED light engine efficacy: 40 lumens/watt installed in fixtures that meet the minimum light fixture efficacy of 29 lumens/watt or, alternatively, a minimum LED light engine efficacy of 60 lumens/watt for fixtures that do not meet the minimum light fixture efficacy of 29 lumens/watt.

(iii)

All portable fixtures shall have a minimum LED light fixture efficacy of 29 lumens/watt and a minimum LED light engine efficacy of 60 lumens/watt by January 1, 2016.

(iv)

Color Correlated Temperature (CCT): 2700K through 4000K.

(v)

Minimum Color Rendering Index (CRI): 75.

(vi)

Power factor equal to or greater than 0.70.

(vii)

Portable luminaries that have internal power supplies shall have zero standby power when the luminaire is turned off.

(viii)

LED light sources shall deliver at least 70 percent of initial lumens for at least 25,000 hours.

(D)
(i)

Be equipped with an ANSI-designated E12, E17, or E26 screw-based socket and be prepackaged and sold together with 1 screw-based compact fluorescent lamp or screw-based LED lamp for each screw-based socket on the portable light fixture.

(ii)

The compact fluorescent or LED lamps prepackaged with the light fixture shall be fully compatible with any light fixture controls incorporated into the light fixture (for example, light fixtures with dimmers shall be packed with dimmable lamps).

(iii)

Compact fluorescent lamps prepackaged with light fixtures shall meet the requirements of the Energy Star Program for CFLs Version 4.0.

(iv)

Screw-based LED lamps shall comply with the minimum requirements described in subparagraph (C).

(E)

Be equipped with 1 or more single-ended, non-screw based halogen lamp sockets (line or low voltage), a dimmer control or high-low control, and be rated for a maximum of 100 watts.

(2)

Review

(A)

Review

The Secretary shall review the criteria and standards established under paragraph (1) to determine if revised standards are technologically feasible and economically justified.

(B)

Components

The review shall include consideration of—

(i)

whether a separate compliance procedure is still needed for halogen fixtures described in subparagraph (E) and, if necessary, what an appropriate standard for halogen fixtures shall be;

(ii)

whether the specific technical criteria described in subparagraphs (A), (C), and (D)(iii) should be modified; and

(iii)

which fixtures should be exempted from the light fixture efficacy standard as of January 1, 2016, because the fixtures are primarily decorative in nature (as defined by the Secretary) and, even if exempted, are likely to be sold in limited quantities.

(C)

Timing

(i)

Determination

Not later than January 1, 2014, the Secretary shall publish amended standards, or a determination that no amended standards are justified, under this subsection.

(ii)

Standards

Any standards under this paragraph shall take effect on January 1, 2016.

(3)

Art work light fixtures

Art work light fixtures manufactured on or after January 1, 2012, shall—

(A)

comply with paragraph (1); or

(B)
(i)

contain only ANSI-designated E12 screw-based line-voltage sockets;

(ii)

have not more than 3 sockets;

(iii)

be controlled with an integral high/low switch;

(iv)

be rated for not more than 25 watts if fitted with 1 socket; and

(v)

be rated for not more than 15 watts per socket if fitted with 2 or 3 sockets.

(4)

Exception from preemption

Notwithstanding section 327, Federal preemption shall not apply to a regulation concerning portable light fixtures adopted by the California Energy Commission on or before January 1, 2014.

.

(2)

GU–24 base lamps

(A)

Definitions

Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by paragraph (1)(A)) is amended by adding at the end the following:

(72)

GU–24

The term GU–24 means the designation of a lamp socket, based on a coding system by the International Electrotechnical Commission, under which—

(A)

G indicates a holder and socket type with 2 or more projecting contacts, such as pins or posts;

(B)

U distinguishes between lamp and holder designs of similar type that are not interchangeable due to electrical or mechanical requirements; and

(C)

24 indicates the distance in millimeters between the electrical contact posts.

(73)

GU–24 adaptor

(A)

In general

The term GU–24 Adaptor means a 1-piece device, pig-tail, wiring harness, or other such socket or base attachment that—

(i)

connects to a GU–24 socket on 1 end and provides a different type of socket or connection on the other end; and

(ii)

does not alter the voltage.

(B)

Exclusion

The term GU–24 Adaptor does not include a fluorescent ballast with a GU–24 base.

(74)

GU–24 base lamp

GU–24 base lamp means a light bulb designed to fit in a GU–24 socket.

.

(B)

Standards

Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) (as amended by paragraph (1)(D)) is amended by inserting after subsection (ii) the following:

(jj)

GU–24 base lamps

(1)

In general

A GU–24 base lamp shall not be an incandescent lamp as defined by ANSI.

(2)

GU–24 adaptors

GU–24 adaptors shall not adapt a GU–24 socket to any other line voltage socket.

.

(3)

Standards for certain incandescent reflector lamps

Section 325(i) of the Energy Policy and Conservation Act (42 U.S.C. 6293(i)), as amended by section 171(a)(12) of this Act, is amended by adding at the end the following:

(9)

Certain incandescent reflector lamps

(A)

No later than 12 months after enactment of this paragraph, the Secretary shall publish a final rule establishing standards for incandescent reflector lamp types described in paragraph (1)(C). Such standards shall be effective on July 1, 2013.

(B)

Any rulemaking for incandescent reflector lamps completed after enactment of this section shall consider standards for all incandescent reflector lamps, inclusive of those specified in paragraph (1)(C).

(10)

Reflector lamps

No later than January 1, 2015, the Secretary shall publish a final rule establishing and amending standards for reflector lamps, including incandescent reflector lamps. Such standards shall be effective no sooner than three years after publication of the final rule. Such rulemaking shall consider incandescent and nonincandescent technologies. Such rulemaking shall consider a new metric other than lumens-per-watt based on the photometric distribution of light from such lamps.

.

212.

Other appliance efficiency standards

(a)

Standards for Water Dispensers, Hot Food Holding Cabinets, and Portable Electric Spas

(1)

Definitions

Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291), as amended by section 211 of this Act, is further amended by adding at the end the following:

(75)

The term water dispenser means a factory-made assembly that mechanically cools and heats potable water and that dispenses the cooled or heated water by integral or remote means.

(76)

The term bottle-type water dispenser means a drinking water dispenser designated for dispensing both hot and cold water that uses a removable bottle or container as the source of potable water.

(77)

The term commercial hot food holding cabinet means a heated, fully enclosed compartment with one or more solid or glass doors that is designed to maintain the temperature of hot food that has been cooked in a separate appliance. Such term does not include heated glass merchandizing cabinets, drawer warmers, commercial hot food holding cabinets with interior volumes of less than 8 cubic feet, or cook-and-hold appliances.

(78)

The term portable electric spa means a factory-built electric spa or hot tub, supplied with equipment for heating and circulating water.

.

(2)

Coverage

Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)), as amended by section 211(b)(1)(B) of this Act, is further amended by inserting after paragraph (20) the following new paragraphs:

(21)

Bottle type water dispensers.

(22)

Commercial hot food holding cabinets.

(23)

Portable electric spas.

.

(3)

Test procedures

Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by section 211(b)(1)(C) of this Act, is further amended by adding at the end the following:

(20)

Bottle type water dispensers

Test procedures for bottle type water dispensers shall be based on Energy Star Program Requirements for Bottled Water Coolers version 1.1 published by the Environmental Protection Agency. Units with an integral, automatic timer shall not be tested using section 4D, Timer Usage, of the test criteria.

(21)

Commercial hot food holding cabinets

Test procedures for commercial hot food holding cabinets shall be based on the test procedures described in ANSI/ASTM F2140–01 (Test for idle energy rate-dry test). Interior volume shall be based on the method shown in the Environmental Protection Agency’s Energy Star Program Requirements for Commercial Hot Food Holding Cabinets as in effect on August 15, 2003.

(22)

Portable electric spas

Test procedures for portable electric spas shall be based on the test method for portable electric spas contained in section 1604, title 20, California Code of Regulations as amended on December 3, 2008. When the American National Standards Institute publishes a test procedure for portable electric spas, the Secretary shall revise the Department of Energy’s procedure.

.

(4)

Standards

Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295), as amended by section 211 of this Act, is further amended by adding after subsection (jj) the following:

(kk)

Bottle type water dispensers

Effective January 1, 2012, bottle-type water dispensers designed for dispensing both hot and cold water shall not have standby energy consumption greater than 1.2 kilowatt-hours per day.

(ll)

Commercial hot food holding cabinets

Effective January 1, 2012, commercial hot food holding cabinets with interior volumes of 8 cubic feet or greater shall have a maximum idle energy rate of 40 watts per cubic foot of interior volume.

(mm)

Portable electric spas

Effective January 1, 2012, portable electric spas shall not have a normalized standby power greater than 5(V2/3) Watts where V = the fill volume in gallons.

The Secretary of Energy shall consider revisions to the standards in subsections (kk), (ll), and (mm) in accordance with subsection (o) and publish a final rule no later than January 1, 2013, establishing such revised standards, or make a finding that no revisions are technically feasible and economically justified. Any such revised standards shall take effect January 1, 2016.

.

(b)

Commercial furnace efficiency standards

Section 342(a) of the Energy Policy and Conservation Act (42 U.S.C. 6312(a)) is amended by inserting after paragraph (10) the following new paragraph:

(11)

Warm air furnaces

Each warm air furnace with an input rating of 225,000 Btu per hour or more and manufactured after January 1, 2011, shall meet the following standard levels:

(A)

Gas-fired units

(i)

Minimum thermal efficiency of 80 percent.

(ii)

Include an interrupted or intermittent ignition device.

(iii)

Have jacket losses not exceeding 0.75 percent of the input rating.

(iv)

Have either power venting or a flue damper.

(B)

Oil-fired units

(i)

Minimum thermal efficiency of 81 percent.

(ii)

Have jacket losses not exceeding 0.75 percent of the input rating.

(iii)

Have either power venting or a flue damper.

.

213.

Appliance efficiency determinations and procedures

(a)

Definition of energy conservation standard

Section 321(6) of the Energy Policy and Conservation Act (42 U.S.C. 6291(6)) is amended to read as follows:

(6)

Energy conservation standard

(A)

In general

The term energy conservation standard means 1 or more performance standards that—

(i)

for covered products (excluding clothes washers, dishwashers, showerheads, faucets, water closets, and urinals), prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323;

(ii)

for showerheads, faucets, water closets, and urinals, prescribe a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with test procedures prescribed under section 323; and

(iii)

for clothes washers and dishwashers—

(I)

prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323; and

(II)

may include a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with those test procedures.

(B)

Inclusions

The term energy conservation standard includes—

(i)

1 or more design requirements, if the requirements were established—

(I)

on or before the date of enactment of this subclause;

(II)

as part of a direct final rule under section 325(p)(4); or

(III)

as part of a final rule published on or after January 1, 2012, and

(ii)

any other requirements that the Secretary may prescribe under section 325(r).

(C)

Exclusion

The term energy conservation standard does not include a performance standard for a component of a finished covered product, unless regulation of the component is specifically authorized or established pursuant to this title.

.

(b)

Adopting consensus test procedures and test procedures in use elsewhere

Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by sections 211 and 212 of this Act, is further amended by adding the following new paragraph after paragraph (22):

(23)

Consensus and alternate test procedures

(A)

Receipt of joint recommendation or alternate testing procedure

On receipt of—

(i)

a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, and contains recommendations with respect to the testing procedure for a covered product; or

(ii)

a submission of a testing procedure currently in use for a covered product by a State, nation, or group of nations—

(I)

if the Secretary determines that the recommended testing procedure contained in the statement or submission is in accordance with subsection (b)(3), the Secretary may issue a final rule that establishes an energy or water conservation testing procedure that is published simultaneously with a notice of proposed rulemaking that proposes a new or amended energy or water conservation testing procedure that is identical to the testing procedure established in the final rule to establish the recommended testing procedure (referred to in this paragraph as a direct final rule); or

(II)

if the Secretary determines that a direct final rule cannot be issued based on the statement or submission, the Secretary shall publish a notice of the determination, together with an explanation of the reasons for the determination.

(B)

Public comment

The Secretary shall solicit public comment for a period of at least 110 days with respect to each direct final rule issued by the Secretary under subparagraph (A)(ii)(I).

(C)

Withdrawal of direct final rules

(i)

In general

Not later than 120 days after the date on which a direct final rule issued under subparagraph (A)(ii)(I) is published in the Federal Register, the Secretary shall withdraw the direct final rule if—

(I)

the Secretary receives 1 or more adverse public comments relating to the direct final rule under subparagraph (B)or any alternative joint recommendation; and

(II)

based on the rulemaking record relating to the direct final rule, the Secretary determines that such adverse public comments or alternative joint recommendation may provide a reasonable basis for withdrawing the direct final rule under paragraph (3) or any other applicable law.

(ii)

Action on withdrawal

On withdrawal of a direct final rule under clause (i), the Secretary shall—

(I)

proceed with the notice of proposed rulemaking published simultaneously with the direct final rule as described in subparagraph (A)(ii)(I); and

(II)

publish in the Federal Register the reasons why the direct final rule was withdrawn.

(iii)

Treatment of withdrawn direct final rules

A direct final rule that is withdrawn under clause (i) shall not be considered to be a final rule for purposes of subsection (b).

(D)

Effect of paragraph

Nothing in this paragraph authorizes the Secretary to issue a direct final rule based solely on receipt of more than 1 statement containing recommended test procedures relating to the direct final rule.

.

(c)

Updating television test methods

Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by sections 211 and 212 of this Act, and subsection (b) of this section, is further amended by adding at the end the following new paragraph:

(24)

Televisions

(A)

On the date of enactment of this section, Appendix H to Subpart B of Part 430 of the United States Code of Federal Regulations, Uniform Test Method for Measuring the Energy Consumption of Television Sets, is repealed.

(B)

No later than 12 months after enactment of this paragraph the Secretary shall publish in the Federal Register a final rule prescribing a new test method for televisions.

.

(d)

Criteria for Prescribing New or Amended Standards

(1)

Section 325(o)(2)(B)(i) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)(2)(B)(i)) is amended as follows:

(A)

By striking and at the end of subclause (VI).

(B)

By and inserting the following new subclauses after subclause (VI):

(VII)

the estimated value of the carbon dioxide or other emission reductions that will be achieved by virtue of the higher energy efficiency of the covered products resulting from the imposition of the standard;

(VIII)

the estimated impact of standards for a particular product on average consumer energy prices;

(IX)

the increased energy efficiency that may be attributable to the installation of Smart Grid technologies or capabilities in the covered products, if applicable in the determination of the Secretary;

(X)

the availability in the United States or in other nations of examples or prototypes of covered products that achieve significantly higher efficiency standards for energy or for water; and

.

(C)

By redesignating subclause (VII) as subclause (XI).

(2)

Section 325(o)(2)(B)(iii) of such Act is amended as follows:

(A)

By striking three and inserting 5.

(B)

By inserting after the first sentence the following For products with an average expected useful life of less than 5 years, such rebuttable presumption shall be determined utilizing 75 percent of the product’s average expected useful life as a multiplier instead of 5..

(C)

By striking the last sentence and inserting the following:

Such a presumption may be rebutted only if the Secretary finds, based on clear, convincing, and reliable evidence, that—

(I)

such standard level would cause serious and unavoidable hardship to the average consumer of the product, or to manufacturers supplying a significant portion of the market for the product, that substantially outweighs the standard level’s benefits;

(II)

the standard and implementing regulations cannot be designed to avoid or mitigate the hardship identified under subparagraph (I), through the adoption of regional standards consistent with paragraph (6) of this subsection, or other reasonable means consistent with this chapter;

(III)

the same or substantially similar hardship would not occur under a standard adopted in the absence of the presumption, but that otherwise meets the requirements of this section; and

(IV)

the hardship cannot be avoided or mitigated pursuant the procedures specified in section 504 of the Department of Energy Organization Act (42 U.S.C. 7194).

A determination by the Secretary that the criteria triggering such presumption are not met, or that the criterion for rebutting the presumption are met shall not be taken into consideration in the Secretary’s determination of whether a standard is economically justified.

.

(e)

Obtaining appliance information from manufacturers

Section 326(d) of the Energy Policy and Conservation Act (42 U.S.C. 6295(d)) is amended to read as follows:

(d)

Information requirements

(1)

For purposes of carrying out this part, the Secretary shall publish proposed regulations not later than one year after the date of enactment of the American Clean Energy and Security Act of 2009, and after receiving public comment, final regulations not later than 18 months from such date of enactment under this part or other provision of law administered by the Secretary, which shall require each manufacturer of a covered product to submit information or reports to the Secretary on an annual basis in a form adopted by the Secretary. Such reports shall include information or data with respect to—

(A)

the manufacturers’ compliance with all requirements applicable pursuant to this part;

(B)

the economic impact of any proposed energy conservation standard;

(C)

the manufacturers’ annual shipments of each class or category of covered products, organized, to the maximum extent practicable, by—

(i)

energy efficiency, energy use, and, if applicable, water use;

(ii)

the presence or absence of such efficiency related or energy consuming operational characteristics or components as the Secretary determines are relevant for the purposes of carrying out this part; and

(iii)

the State or regional location of sale, for covered products for which the Secretary may adopt regional standards; and

(D)

such other categories of information as the Secretary deems relevant to carry out this part, including such other information as may be necessary to establish and revise test procedures, labeling rules, and energy conservation standards and to insure compliance with the requirements of this part.

(2)

In adopting regulations under this subsection, the Secretary shall consider existing public sources of information, including nationally recognized certification programs of trade associations.

(3)

The Secretary shall exercise authority under this section in a manner designed to minimize unnecessary burdens on manufacturers of covered products.

(4)

To the extent that they do not conflict with the duties of the Secretary in carrying out this part, the provisions of section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (15 U.S.C. 796(d)) shall apply with respect to information obtained under this subsection to the same extent and in the same manner as they apply with respect to other energy information obtained under such section.

.

(f)

State Waiver

Section 327(c) of the Energy Policy and Conservation Act (42 U.S.C. 6297(c)), as amended by section 171(a)(19) of this Act, is further amended by adding at the end the following:

(12)

is a regulation concerning standards for hot food holding cabinets, drinking water dispensers and portable electric spas adopted by the California Energy Commission on or before January 1, 2013.

.

(g)

Waiver of federal preemption

Paragraph (1) of section 327(d) of the Energy Policy and Conservation Act (42 U.S.C. 6297(d)) is amended as follows:

(1)

In subparagraph (A) by striking State regulation each place it appears and inserting State statute or regulation.

(2)

In subparagraph (B) by adding at the end the following new sentence: In making such a finding, the Secretary may not reject a petition for failure of the petitioning State or river basin commission to produce confidential information maintained by any manufacturer or distributor, or group or association of manufacturers or distributors, and which the petitioning party does not have the legal right to obtain..

(3)

In clause (ii) of subparagraph (C) by striking costs each place it appears and inserting estimated costs.

(4)

In subparagraph (C) by striking within the context of the State’s energy plan and forecast, and,.

(h)

Inclusion of carbon output on appliance Energyguide labels

(1)

Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at the end:

(I)
(i)

Not later than 90 days after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to implement the additional labeling requirements specified in subsection (c)(1)(C) of this section with an effective date for the revised labeling requirement not later than 12 months from issuance of the final rule.

(ii)

Not later than 24 months after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).

(iii)

Not later than 90 days after issuance of the final rule as provided in this subparagraph, the Secretary shall issue calculation methods required to effectuate the labeling requirements specified in subsection (c)(1)(C) of this section.

.

(2)

Section 324(c)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6294(c)(1)) is amended—

(A)

by striking and at the end of subparagraph (A);

(B)

by striking the period at the end of subparagraph (B); and

(C)

by adding at the end the following new subparagraphs:

(C)

for products or groups of products providing a comparable function (including the group of products comprising the heating function of heat pumps and furnaces) among covered products listed in paragraphs (3), (4), (5), (8), (9), (10), and (11) of section 322(a) of this part, and others designated by the Secretary, the estimated total annual atmospheric carbon dioxide emissions (or their equivalent in other greenhouse gases) associated with, or caused by, the product, calculated utilizing—

(i)

national average energy use for the product including energy consumed at the point of end use based on test procedures developed under section 323 of this part;

(ii)

national average energy consumed or lost in the production, generation, transportation, storage, and distribution of energy to the point of end use; and

(iii)

any direct emissions of greenhouse gases from the product during normal use;

(D)

in determining the national average energy consumption and total annual atmospheric carbon dioxide emissions, the Secretary shall utilize Federal Government sources, including the Energy Information Administration Annual Energy Review, the Environmental Protection Agency eGRID data base, Environmental Protection Agency AP–42 Emission Factors as amended, and other sources determined to be appropriate by the Secretary; and

(E)

information presenting, for each product (or group of products providing the comparable function) identified in section (c)(1)(C) of this section, the estimated annual carbon dioxide emissions calculated within the range of emissions calculated for all models of the product or group according to its function, including those models consuming fuels and those models not consuming fuels.

.

(i)

Permitting States To seek injunctive enforcement

Section 334 of the Energy Policy and Conservation Act (42 U.S.C. 6304(a)) is amended to read as follows:

334.

Jurisdiction and venue

(a)

Jurisdiction

The United States district courts shall have jurisdiction to restrain—

(1)

any violation of section 332; and

(2)

any person from distributing in commerce any covered product which does not comply with an applicable rule under section 324 or 325.

(b)

Authority

Any action referred to in subsection (a) shall be brought by the Commission or by the attorney general of a State in the name of the State, except that—

(1)

any such action to restrain any violation of section 332(a)(3) which relates to requirements prescribed by the Secretary or any violation of section 332(a)(4) which relates to request of the Secretary under section 326(b)(2) shall be brought by the Secretary; and

(2)

any violation of section 332(a)(5) or 332(a)(7) shall be brought by the Secretary or by the attorney general of a State in the name of the State.

(c)

Venue and service of process

Any such action may be brought in the United States district court for a district wherein any act, omission, or transaction constituting the violation occurred, or in such court of the district wherein the defendant is found or transacts business. In any action under this section, process may be served on a defendant in any other district in which the defendant resides or may be found.

.

(j)

Treatment of appliances within building codes

(1)

Section 327(f)(3) of the Energy Policy and Conservation Act (42 U.S.C. 6297(f)(3)) is amended by striking subparagraphs (B) through (E) and inserting the following:

(B)

The code meets at least one of the following requirements:

(i)

The code does not require that the covered product have an energy efficiency exceeding—

(I)

the applicable energy conservation standard established in or prescribed under section 325;

(II)

the level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d) of this section; or

(III)

the required level established in the International Energy Conservation Code or in a standard of the American Society of Heating, Refrigerating and Air-Conditioning Engineers, or by the Secretary pursuant to section 304 of the Energy Conservation and Production Act.

(ii)

If the code uses one or more baseline building designs against which all submitted building designs are to be evaluated and such baseline building designs contain a covered product subject to an energy conservation standard established in or prescribed under section 325, the baseline building designs are based on an efficiency level for such covered product which meets but does not exceed one of the levels specified in clause (i).

(iii)

If the code sets forth one or more optional combinations of items which meet the energy consumption or conservation objective, in at least one combination that the State has found to be reasonably achievable using commercially available technologies the efficiency of the covered product meets but does not exceed one of the levels specified in clause (i).

(C)

The credit to the energy consumption or conservation objective allowed by the code for installing covered products having energy efficiencies exceeding one of the levels specified in subparagraph (B)(i) is on a one-for-one equivalent energy use or equivalent energy cost basis, taking into account the typical lifetime of the product.

(D)

The energy consumption or conservation objective is specified in terms of an estimated total consumption of energy (which may be calculated from energy loss- or gain-based codes) utilizing an equivalent amount of energy (which may be specified in units of energy or its equivalent cost) and equivalent lifetimes.

(E)

The estimated energy use of any covered product permitted or required in the code, or used in calculating the objective, is determined using the applicable test procedures prescribed under section 323, except that the State may permit the estimated energy use calculation to be adjusted to reflect the conditions of the areas where the code is being applied if such adjustment is based on the use of the applicable test procedures prescribed under section 323 or other technically accurate documented procedure.

.

(2)

Section 327(f)(4)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read as follows:

(B)

If a building code requires the installation of covered products with efficiencies exceeding the levels and requirements specified in paragraph (3)(B), such requirement of the building code shall not be applicable unless the Secretary has granted a waiver for such requirement under subsection (d) of this section.

.

214.

Best-in-Class Appliances Deployment Program

(a)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Administrator, shall establish a program to be known as the Best-in-Class Appliances Deployment Program to—

(1)

provide bonus payments to retailers or distributors under subsection (c) for sales of best-in-class high-efficiency household appliance models, high-efficiency installed building equipment, and high-efficiency consumer electronics, with the goal of reducing life-cycle costs for consumers, encouraging innovation, and maximizing energy savings and public benefit;

(2)

provide bounties under subsection (d) to retailers for the replacement, retirement, and recycling of old, inefficient, and environmentally harmful products; and

(3)

provide premium awards under subsection (e) to manufacturers for developing and producing new Superefficient Best-in-Class Products.

(b)

Designation of best-in-class product models

(1)

In general

The Secretary of Energy shall designate product models of appliances, equipment, or electronics as Best-in-Class Product models. The Secretary shall publicly announce the Best-in-Class Product models designated under this subsection. The Secretary shall define product classes broadly and, except as provided in paragraph (2), shall designate as Best-in-Class Product models no more than the most efficient 10 percent of the commercially available product models in a class that demonstrate, as a group, a distinctly greater energy efficiency than the average energy efficiency of that class of appliances, equipment, or electronics. In designating models, the Secretary shall—

(A)

identify commercially available models in the relevant class of products;

(B)

identify the subgroup of those models that share the distinctly higher energy-efficiency characteristics that warrant designation as best-in-class; and

(C)

add other models in that class to the list of Best-in-Class Product models as they demonstrate their ability to meet the higher-efficiency characteristics on which the designation was made.

(2)

Percentage exception

If there are fewer than 10 product models in a class of products, the Secretary may designate one or more of such models as Best-in-Class Products.

(3)

Review of best-in-class standards

The Secretary shall review annually the product-specific criteria for designating, and the product models that qualify as, Best-in-Class Products and, after notice and a 30-day comment period, make upwards adjustments in the efficiency criteria as necessary to maintain an appropriate ratio of such product models to the total number of product models in the product class.

(c)

Bonuses for sales of best-in-class products

(1)

In general

The Secretary of Energy shall make bonus payments to retailers or, as provided in paragraph (5)(B), distributors for the sale of Best-in-Class Products.

(2)

Bonus program

The Secretary shall—

(A)

publicly announce the availability and amount of the bonus to be paid for each sale of a Best-in-Class Product of a model designated under subsection (b); and

(B)

make bonus payments in at least that amount for each Best-in-Class Product of that model sold during the 3-year period beginning on the date the model is designated under subsection (b).

(3)

Upgrade of best-in-class product eligibility

In conducting a review under subsection (b)(3), the Secretary shall—

(A)

consider designating as a Best-in-Class Product model a Superefficient Best-in-Class Product model that has been designated pursuant to subsection (e);

(B)

announce any change in the bonus payment as necessary to increase the market share of Best-in-Class Product models;

(C)

list models that will be eligible for bonuses in the new amount; and

(D)

continue paying bonus payments at the original level, for the sale of any models that previously qualified as Best-in-Class Products but do not qualify at the new level, for the remainder of the 3-year period announced with the original designation.

(4)

Size of individual bonus payments

(A)

The size of each bonus payment under this subsection shall be the product of—

(i)

an amount determined by the Secretary; and

(ii)

the difference in energy consumption between the Best-in-Class Product and the average product in the product class.

(B)

The Secretary shall determine the amount under subparagraph (A)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on estimates of the amount of bonus payment that would provide significant incentive to increase the market share of Best-in-Class Products.

(5)

Eligible bonus recipient

(A)

The Secretary shall ensure that not more than 1 bonus payment is provided under this subsection for each Best-in-Class Product.

(B)

The Secretary may make distributors eligible to receive bonus payments under this subsection for sales that are not to the final end-user, to the extent that the Secretary determines that for a particular product category distributors are well situated to increase sales of Best-in-Class Products.

(d)

Bounties for replacement, retirement, and recycling of existing low-efficiency products

(1)

In general

The Secretary of Energy shall make bounty payments to retailers for the replacement, retirement, and recycling of older operating low-efficiency products that might otherwise continue in operation.

(2)

Bounties

Bounties shall be payable upon documentation that the sale of a Best-in-Class Product was accompanied by the replacement, retirement, and recycling of—

(A)

an inefficient but still-functioning product; or

(B)

a nonfunctioning product containing a refrigerant,

by the consumer to whom the Best-in-Class Product was sold.
(3)

Amount

(A)

Functioning products

The bounty payment payable under this subsection for a product described in paragraph (2)(A) shall be based on the difference between the estimated energy use of the product replaced and the energy use of an average new product in the product class, over the estimated remaining lifetime of the product that was replaced.

(B)

Nonfunctioning products containing refrigerants

The bounty payment payable under this subsection for a product described in paragraph (2)(B) shall be in the amount that the Secretary of Energy, in consultation with the Administrator, determines is sufficient to promote the recycling of such products, up to the amount of bounty for a comparable product described in paragraph (2)(A).

(4)

Retirement

The Secretary shall ensure that no product for which a bounty is paid under this subsection is returned to active service, but that it is instead destroyed, and recycled to the extent feasible.

(5)

Recycling appliances containing refrigerants

The Secretary shall ensure that standards for environmentally responsible methods of recycling established by the Administrator pursuant to section 608 of the Clean Air Act are employed before a bounty payment is made under this subsection for a product containing a refrigerant. Nothing in this section shall be interpreted to alter the requirements of section 608 of the Clean Air Act or to relieve any person from complying with those requirements.

(e)

Premium awards for development and production of Superefficient best-in-class products

(1)

In General

(A)

The Secretary of Energy shall provide premium awards to manufacturers for the development and production of Superefficient Best-in-Class Products. The Secretary shall set and periodically revise standards for eligibility of products for designation as a Superefficient Best-in-Class Product.

(B)

The Secretary may establish a standard for a Superefficient Best-in-Class Product even if no product meeting that standard exists, if the Secretary has reasonable grounds to conclude that a mass-producible product could be made to meet that standard.

(C)

The Secretary may also establish a Superefficient Best-in-Class Product standard that is met by one or more existing Best-in-Class Product models, if those product models have distinct energy efficiency attributes and performance characteristics that make them significantly better than other product models qualifying as best-in-class. The Secretary may not designate as Superefficient Best-in-Class Products under this subparagraph models that represent more than 10 percent of the currently qualifying Best-in-Class Product models.

(2)

Premium awards

(A)

The premium award payment provided to a manufacturer under this subsection shall be in addition to any bonus payments made under subsection (c).

(B)

The amount of the premium award paid per unit of Superefficient Best-in-Class Products sold to retailers or distributors shall be the product of—

(i)

an amount determined by the Secretary; and

(ii)

the difference in energy consumption between the Superefficient Best-in-Class Product and the average product in the product class.

(C)

The Secretary shall determine the amount under subparagraph (B)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on consideration of the present value to the Nation of the energy (and water or other resources or inputs) saved over the useful life of the product. The Secretary may also take into consideration the methods used to increase sales of qualifying products in determining such amount.

(D)

The Secretary may adjust the value described in subparagraph (C) upward or downward as appropriate, including based on the effect of the premium awards on the sales of products in different classes that may be affected by the program under this subsection.

(E)

Premium award payments shall be applied to sales of any Superefficient Best-in-Class Product for the first 3 years after designation as a Superefficient Best-in-Class Product.

(3)

Coordination of incentives

No product for which Federal tax credit is received under section 45M of the Internal Revenue Code of 1986 shall be eligible to receive premium award payments pursuant to this subsection.

(f)

Reporting

The Secretary of Energy shall require, as a condition of receiving a bonus, bounty, or premium award under this section, that a report containing the following documentation be provided:

(1)

For retailers and distributors, the number of units sold within each product type, and model-specific wholesale purchase prices and retail sale prices, on a monthly basis.

(2)

For manufacturers, model-specific energy consumption data.

(3)

For manufacturers, on an immediate basis, information concerning any product design or function changes that affect the energy consumption of the unit.

(4)

The methods used to increase the sales of qualifying products.

(g)

Monitoring and verification protocols

The Secretary of Energy shall establish monitoring and verification protocols for energy consumption tests for each product model and for sales of energy-efficient models.

(h)

Disclosure

The Secretary of Energy may require that retailers and distributors disclose publicly and to consumers their participation in the program under this section.

(i)

Cost-effectiveness requirement

(1)

Requirement

The Secretary of Energy shall make cost-effectiveness a top priority in designing the program under, and administering, this section, except that the cost-effectiveness of providing premium awards to manufacturers under subsection (e), in aggregate, may be lower by this measure than that of the bonuses and bounties to retailers and distributors under subsections (c) and (d).

(2)

Definitions

In this subsection:

(A)

Cost-effectiveness

The term cost-effectiveness means a measure of aggregate savings in the cost of energy over the lifetime of a product in relation to the cost to the Secretary of the bonuses, bounties, and premium awards provided under this section for a product.

(B)

Savings

The term savings means the cumulative megawatt-hours of electricity or million British thermal units of other fuels saved by a product during the projected useful life of the product, in comparison to projected energy consumption of the average product in the same class, taking into consideration the impact of any documented measures to replace, retire, and recycle low-efficiency products at the time of purchase of highly efficient substitutes.

(j)

Definitions

In this section—

(1)

the term distributor mean an individual, organization, or company that sells products in multiple lots and not directly to end-users;

(2)

the term retailer means an individual, organization, or company that sells products directly to end-users; and

(3)

the term Superefficient Best-in-Class Product means a product that—

(A)

can be mass produced; and

(B)

achieves the highest level of efficiency that the Secretary of Energy finds can, given the current state of technology, be produced and sold commercially to mass-market consumers.

(k)

Authorization of appropriations

There are authorized to be appropriated $300,000,000 for each of the fiscal years 2010 through 2014 to the Secretary of Energy for purposes of this section, of which not more than 10 percent for any fiscal year may be expended on program administration.

215.

Purpose of Energy Star

Section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) is amended—

(1)

by redesignating subsections (b) through (d) as subsections (c) through (e), respectively; and

(2)

by inserting after subsection (a) the following new subsection:

(b)

Purpose

The purpose of the Energy Star program for products is to assist consumers in selecting products for purchase that have demonstrated high energy efficiency and that are cost-effective from the consumer’s perspective, ensuring that any incremental cost attributable to the energy-efficient features of such products will be more than recovered in the value of energy savings the products will make possible within several years of purchase, typically within 3 years but no more than 5 years.

.

C

Transportation Efficiency

221.

Emissions standards

(a)

Motor vehicle standards

The President shall use statutory authorities in effect on the day before the date of enactment of this section to set motor vehicle standards that—

(1)

are achievable by the automobile manufacturing companies;

(2)

to the extent practicable, harmonize standards that may be set by the National Highway Traffic Safety Administration pursuant to the authority in chapter 329 of title 49, United States Code, standards that may be set by the Administrator of the Environmental Protection Agency pursuant to the authority in the Clean Air Act, and standards that have or may be set by the State of California;

(3)

achieve at least as much emissions reductions as would be achieved by implementation of the California law AB 1493 if enforced in the State of California and the other States that have adopted the standard; and

(4)

do not preempt California’s legal authority to adopt and enforce its own mobile source emissions standards.

(b)

Greenhouse gas emission standards for mobile sources

Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by inserting after part A the following new part:

B

Mobile Sources

821.

Greenhouse gas emission standards for mobile sources

(a)

Motor Vehicles and Engines

(1)

Pursuant to section 202(a)(1), by December 31, 2010, the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new heavy-duty vehicles and engines, excluding such vehicles covered by the Tier II standards (as established by the Administrator as of the date of enactment of this section). The Administrator may revise these standards from time to time.

(2)

Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty vehicles and engines, excluding such vehicles covered by the Tier II standards (as established by the Administrator as of the date of enactment of this section), shall contain standards that achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology.

(b)

Nonroad Vehicles and Engines

(1)

Pursuant to section 213(a)(4), the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new marine vessels and locomotives, and from new engines used in marine vessels and locomotives, by December 31, 2012. The Administrator shall also promulgate standards applicable to emissions of greenhouse gases for such other classes and categories of nonroad vehicles and engines as the Administrator determines appropriate and in the timeframe the Administrator determines appropriate. The Administrator shall base such determination, among other factors, on the relative contribution of greenhouse gas emissions, and the costs for achieving reductions, from such classes or categories of new nonroad engines and vehicles. The Administrator may revise these standards from time to time.

(2)

Standards under section 213(a)(4) applicable to emissions of greenhouse gases from new marine vessels and locomotives, and from new engines used in marine vessels and locomotives, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology.

(3)

For purposes of this section and standards under section 213(a)(4) applicable to emissions of greenhouse gases, the term nonroad engines and vehicles shall include non-internal combustion engines and the vehicles these engines power (such as electric engines and electric vehicles), for those non-internal combustion engines and vehicles which would be in the same category and have the same uses as nonroad engines and vehicles that are powered by internal combustion engines.

(c)

Aircraft and aircraft engines

(1)

Pursuant to section 231(a), the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new aircraft and new engines used in aircraft by December 31, 2012. Notwithstanding any requirement in section 231(a), the Administrator shall also promulgate standards applicable to emissions of greenhouse gases from other classes and categories of aircraft and aircraft engines for such classes and categories as the Administrator determines appropriate and in the timeframe the Administrator determines appropriate. The Administrator may revise these standards from time to time.

(2)

Standards under section 231(a) applicable to emissions of greenhouse gases from new aircraft and new engines used in aircraft, and any later revisions or additional standards, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such standards shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology.

(d)

Averaging, banking, and trading of emissions credits

In establishing standards applicable to emissions of greenhouse gases pursuant to this section and sections 202(a), 213(a)(4), and 231(a), the Administrator may establish provisions for averaging, banking, and trading of greenhouse gas emissions credits within or across classes or categories of motor vehicles and motor vehicle engines, nonroad vehicles and engines (including marine vessels), and aircraft and aircraft engines, to the extent the Administrator determines appropriate and considering the factors appropriate in setting standards under those sections. Such provisions may include reasonable and appropriate provisions concerning generation, banking, trading, duration, and use of credits.

(e)

Reports

The Administrator shall, from time to time, submit a report to Congress that projects the amount of greenhouse gas emissions from the transportation sector, including transportation fuels, for the years 2030 and 2050, based on the standards adopted under this section.

.

222.

Greenhouse gas emissions reductions through transportation efficiency

Title VIII of the Clean Air Act, as added by section 331 of this Act, is further amended by inserting after part C the following new part:

D

Planning Requirements

841.

Greenhouse gas emissions reductions through transportation efficiency

(a)

In general

Each State shall—

(1)

not later than 3 years after the date of enactment of this section, submit to the Administrator goals for transportation-related greenhouse gas emissions reductions; and

(2)

as part of each transportation plan or transportation improvement program developed under title 23 or title 49, United States Code, ensure that a plan to achieve such goals, or an updated version of such a plan, is submitted to the Administrator and to the Secretary of Transportation (in this section referred to as the Secretary) by each metropolitan planning organization in the State for an area with a population exceeding 200,000.

(b)

Models and methodologies

(1)

In general

The Administrator shall promulgate regulations to establish standards for use in developing goals, plans, and strategies under this section and for monitoring progress toward such goals. Such standards shall include—

(A)

data collection techniques for assessing State and regional transportation-related greenhouse gas emissions;

(B)

methodologies for determining transportation-related greenhouse gas emissions baselines;

(C)

models and methodologies for scenario analysis; and

(D)

models and methodologies for estimating transportation-related greenhouse gas emissions reductions from the strategies considered under this section.

Such regulations may approve or improve existing models and methodologies.
(2)

Timing

The Administrator shall—

(A)

publish proposed regulations under paragraph (1) not later than 1 year after the date of enactment of this section; and

(B)

promulgate final regulations under paragraph (1) not later than 2 years after such date of enactment.

(3)

Assessment

At least every 6 years after promulgating final regulations under paragraph (1), the Administrator, in coordination with the Secretary, shall assess current and projected progress in reducing transportation-related greenhouse gas emissions. The assessment shall examine the contributions to emissions reductions attributable to improvements in vehicle efficiency, greenhouse gas performance of transportation fuels, and increased efficiency in utilizing transportation systems.

(c)

Greenhouse gas reduction goals

(1)

Consultation

Each State shall develop the goals referred to in subsection (a)(1)—

(A)

in concurrence with State agencies responsible for air quality and transportation;

(B)

in consultation with each metropolitan planning organization for an area in the State with a population exceeding 200,000 and applicable local air quality and transportation agencies; and

(C)

with public involvement, including public comment periods and meetings.

(2)

Period

The goals referred to in subsection (a)(1) shall be for 4-, 10-, and 20-year periods.

(3)

Targets; designated year

The goals referred to in subsection (a)(1) shall establish targets to reduce transportation-related greenhouse gas emissions in the covered area. The targets shall be designed to ensure that the levels of such emissions stabilize and decrease after a designated year. The State shall consider designating 2010 as such designated year.

(4)

Covered area

The goals referred to in subsection (a)(1)—

(A)

shall be established on a statewide basis;

(B)

shall be established for each metropolitan planning organization in the State for an area with a population exceeding 200,000; and

(C)

may be established on a voluntary basis, in accordance with the provisions of this section, for any metropolitan planning organization not described in subparagraph (B).

(5)

Revised goals

Every 4 years, each State shall update and revise, as appropriate, the goals referred to in subsection (a)(1).

(d)

Planning

A plan submitted under subsection (a)(2) shall—

(1)

be based upon the models and methodologies established by the Administrator under subsection (b);

(2)

use transportation and land use scenario analysis to address transportation-related greenhouse gas emissions and economic development impacts; and

(3)

be developed—

(A)

with public involvement, including public comment periods and meetings which provide opportunities for comment from a variety of stakeholders based on age, race, income, and disability;

(B)

with regional coordination, including with respect to—

(i)

metropolitan planning organizations;

(ii)

the localities comprising the metropolitan planning organization;

(iii)

the State in which the metropolitan planning organization is located; and

(iv)

air quality, environmental health, and transportation agencies for the State and region involved; and

(C)

in consultation with the State and local housing, public health, economic development, land use, environment, and public transportation agencies.

(e)

Strategies

In developing goals under subsection (a)(1) and a plan under subsection (a)(2), the State or metropolitan planning organization, as applicable, shall consider transportation and land use planning strategies to reduce transportation-related greenhouse gas emissions, including the following:

(1)

Efforts to increase or improve public transportation, including—

(A)

new public transportation systems, including new commuter rail systems;

(B)

expansion of existing public transportation systems;

(C)

employer-based subsidies;

(D)

cleaner locomotive technologies; and

(E)

quality of service improvements, including improved frequency of service.

(2)

Updates to zoning and other land use regulations and plans to support development that—

(A)

coordinates transportation and land use planning;

(B)

focuses future growth close to existing and planned job centers and public facilities;

(C)

uses existing infrastructure;

(D)

promotes walking, bicycling, and public transportation use; and

(E)

mixes land uses such as housing, retail, and schools.

(3)

Implementation of a policy (referred to as a complete streets policy) that—

(A)

ensures adequate accommodation of all users of transportation systems, including pedestrians, bicyclists, public transportation users, motorists, children, the elderly, and individuals with disabilities; and

(B)

adequately addresses the safety and convenience of all users of the transportation system.

(4)

Construction of bicycle and pedestrian infrastructure facilities, including facilities that improve the connections with networks that provide access to human services, employment, schools, and retail.

(5)

Projects to promote telecommuting, flexible work schedules, or satellite work centers.

(6)

Pricing measures, including tolling, congestion pricing, and pay-as-you-drive insurance.

(7)

Intermodal freight system strategies, including enhanced rail services, short sea shipping, and other strategies.

(8)

Parking policies.

(9)

Intercity rail service, including high speed rail.

(10)

Travel demand management projects.

(11)

Restriction of the use of certain roads, or lanes, by vehicles other than passenger buses and high-occupancy vehicles.

(12)

Reduction of vehicle idling, including idling associated with freight management, construction, transportation, and commuter operations.

(13)

Policies to encourage the use of retrofit technologies and early replacement of vehicles, engines and equipment to reduce transportation-related greenhouse gas emissions from existing mobile sources.

(14)

Other projects that the Administrator finds reduce transportation-related greenhouse gas emissions.

(f)

Public Availability

The Administrator shall publish, including by posting on the Environmental Protection Agency’s website—

(1)

the goals and plans submitted under subsection (a); and

(2)

for each plan submitted under subsection (a)(2), an analysis of the anticipated effects of the plan on greenhouse gas emissions and oil consumption.

(g)

Certification

The Administrator, in consultation with the Secretary, shall certify a State or metropolitan planning organization greenhouse gas reduction plan submitted under subsection (a)(2) if the plan’s implementation is likely to meet the corresponding greenhouse gas reduction goal referred to in subsection (a)(1). If the Administrator, in consultation with the Secretary, determines that a submitted plan cannot be certified, the State or metropolitan planning organization shall revise and resubmit the plan within 1 year.

(h)

Enforcement

If the Administrator finds that a State has failed to submit goals under subsection (a)(1), has failed to ensure the submission of a plan under subsection (a)(2), or has failed to submit a revised plan under subsection (g), for any area in the State (irrespective of whether the area is a nonattainment area), the Administrator shall impose a prohibition in accordance with section 179(b)(1) applicable to the area within 2 years of such a finding. The Administrator may not impose a prohibition under the preceding sentence, and no action may be brought by the Administrator or any other entity alleging a violation of this section, based on the content or adequacy of a goal or plan submitted under subsection (a)(1) or (a)(2) or failure to achieve the goal submitted under subsection (a)(1).

(i)

Competitive Grants

(1)

Grants

The Administrator, in consultation with the Secretary, may—

(A)

award grants to support activities related to improving data collection, modeling, and monitoring systems to assess transportation-related greenhouse gas emissions and the effects of plans, policies, and strategies referenced in this section;

(B)

award grants to States and metropolitan planning organizations for the development of goals and plans to be submitted under sections (a)(1) or (a)(2); and

(C)

award grants, on a competitive basis, to implement plans certified under subsection (g) or elements thereof, provided that each project thus funded includes a measurement and evaluation component that meets the regulations promulgated under subsection (b).

(2)

Priority

In making grants under paragraph (1)(C), the Administrator shall give priority to applicants based upon—

(A)

the amount of total greenhouse gas emissions to be reduced as a result of implementation of a certified plan, within the covered area, as determined by methods established under subsection (b);

(B)

the amount of per capita greenhouse gas emissions to be reduced as a result of implementation of a certified plan, within the covered area, as determined by methods established under subsection (b);

(C)

the cost effectiveness, in terms of dollars per tons of greenhouse gas reductions, to be achieved as a result of the implementation of a certified plan;

(D)

the potential for both short- and long-term reductions; and

(E)

such other factors as the Administrator determines appropriate.

(3)

Authorization of appropriations

To carry out this subsection, there are authorized to be appropriated such sums as may be necessary.

(j)

Definitions

In this section:

(1)

The term metropolitan planning organization means a metropolitan planning organization, as such term is used in section 176.

(2)

The term scenario analysis means an analysis that is conducted by identifying different trends and making projections based on those trends to develop a range of scenarios and estimates of how each scenario could improve access to goods and services, including access to employment, education, and health care (especially for elderly and economically disadvantaged communities), and could affect rates of—

(A)

vehicle miles traveled;

(B)

vehicle hours traveled;

(C)

use of mobile source fuel by type, including electricity; and

(D)

transportation-related greenhouse gas emissions.

(k)

Land use authority

Nothing in this section may be construed to—

(1)

infringe upon the existing authority of State or local governments to plan or control land use; or

(2)

provide or transfer authority over land use to any other entity.

.

223.

SmartWay transportation efficiency program

Part B of title VIII of the Clean Air Act, as added by section 221 of this Act is amended by adding after section 821 the following section:

822.

SmartWay transportation efficiency program

(a)

In general

There is established within the Environmental Protection Agency a SmartWay Transport Program to quantify, demonstrate, and promote the benefits of technologies, products, fuels, and operational strategies that reduce petroleum consumption, air pollution, and greenhouse gas emissions from the mobile source sector.

(b)

General duties

Under the program established under this section, the Administrator shall carry out each of the following:

(1)

Development of measurement protocols to evaluate the energy consumption and greenhouse gas impacts from technologies and strategies in the mobile source sector, including those for passenger transport and goods movement.

(2)

Development of qualifying thresholds for certifying, verifying, or designating energy-efficient, low-greenhouse gas SmartWay technologies and strategies for each mode of passenger transportation and goods movement.

(3)

Development of partnership and recognition programs to promote best practices and drive demand for energy-efficient, low-greenhouse gas transportation performance.

(4)

Promotion of the availability of, and encouragement of the adoption of, SmartWay certified or verified technologies and strategies, and publication of the availability of financial incentives, such as assistance from loan programs and other Federal and State incentives.

(c)

Smartway transport freight partnership

The Administrator shall establish a SmartWay Transport Partnership program with shippers and carriers of goods to promote energy-efficient, low-greenhouse gas transportation. In carrying out such partnership, the Administrator shall undertake each of the following:

(1)

Certification of the energy and greenhouse gas performance of participating freight carriers, including those operating rail, trucking, marine, and other goods movement operations.

(2)

Publication of a comprehensive energy and greenhouse gas performance index of freight modes (including rail, trucking, marine, and other modes of transporting goods) and individual freight companies so that shippers can choose to deliver their goods more efficiently.

(3)

Development of tools for—

(A)

carriers to calculate their energy and greenhouse gas performance; and

(B)

shippers to calculate the energy and greenhouse gas impacts of moving their products and to evaluate the relative impacts from transporting their goods by different modes and corporate carriers.

(4)

Provision of recognition opportunities for participating shipper and carrier companies demonstrating advanced practices and achieving superior levels of greenhouse gas performance.

(d)

Improving freight greenhouse gas performance databases

The Administrator shall, in coordination with other appropriate agencies, define and collect data on the physical and operational characteristics of the Nation’s truck population, with special emphasis on data related to energy efficiency and greenhouse gas performance to inform the performance index published under subsection (c)(2) of this section, and other means of goods transport as necessary, at least every 5 years.

(e)

Establishment of financing program

The Administrator shall establish a SmartWay Financing Program to competitively award funding to eligible entities identified by the Administrator in accordance with the program requirements in subsection (g).

(f)

Purpose

Under the SmartWay Financing Program, eligible entities shall—

(1)

use funds awarded by the Administrator to provide flexible loan and lease terms that increase approval rates or lower the costs of loans and leases in accordance with guidance developed by the Administrator; and

(2)

make such loans and leases available to public and private entities for the purpose of adopting low-greenhouse gas technologies or strategies for the mobile source sector that are designated by the Administrator.

(g)

Program requirements

The Administrator shall determine program design elements and requirements, including—

(1)

the type of financial mechanism with which to award funding, in the form of grants or contracts;

(2)

the designation of eligible entities to receive funding, including State, tribal, and local governments, regional organizations comprised of governmental units, nonprofit organizations, or for-profit companies;

(3)

criteria for evaluating applications from eligible entities, including anticipated—

(A)

cost-effectiveness of loan or lease program on a metric-ton-of-greenhouse gas-saved-per-dollar basis;

(B)

ability to promote the loan or lease program and associated technologies and strategies to the target audience; and

(4)

reporting requirements for entities that receive awards, including—

(A)

actual cost-effectiveness and greenhouse gas savings from the loan or lease program based on a methodology designated by the Administrator;

(B)

the total number of applications and number of approved applications; and

(C)

terms granted to loan and lease recipients compared to prevailing market practices.

(h)

Authorization of appropriations

Such sums as necessary are authorized to be appropriated to the Administrator to carry out this section.

.

224.

State vehicle fleets

Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C. 13257) is amended by adding the following new paragraph at the end thereof:

(3)

The Secretary shall revise the rules under this subsection with respect to the types of alternative fueled vehicles required for compliance with this subsection to ensure those rules are consistent with any guidance issued pursuant to section 303 of this Act.

.

D

Industrial Energy Efficiency Programs

241.

Industrial plant energy efficiency standards

The Secretary of Energy shall continue to support the development of the American National Standards Institute (ANSI) voluntary industrial plant energy efficiency certification program, pending International Standards Organization (ISO) consensus standard 50001, and other related ANSI/ISO standards. In addition, the Department shall undertake complementary activities through the Department of Energy’s Industry Technologies Program that support the voluntary implementation of such standards by manufacturing firms. There are authorized to be appropriated to the Secretary such sums as are necessary to carry out these activities. The Secretary shall report to Congress on the status of standards development and plans for further standards development pursuant to this Section by not later than 18 months after the date of enactment of this Act, and shall prepare a second such report 18 months thereafter.

242.

Electric and thermal waste energy recovery award program

(a)

Electric and thermal waste energy recovery awards

The Secretary of Energy shall establish a program to make monetary awards to the owners and operators of new and existing electric energy generation facilities or thermal energy production facilities using fossil or nuclear fuel, to encourage them to use innovative means of recovering any thermal energy that is a potentially useful byproduct of electric power generation or other processes to—

(1)

generate additional electric energy; or

(2)

make sales of thermal energy not used for electric generation, in the form of steam, hot water, chilled water, or desiccant regeneration, or for other commercially valid purposes.

(b)

Amount of awards

(1)

Eligibility

Awards shall be made under subsection (a) only for the use of innovative means that achieve net energy efficiency at the facility concerned significantly greater than the current standard technology in use at similar facilities.

(2)

Amount

The amount of an award made under subsection (a) shall equal an amount up to the value of 25 percent of the energy projected to be recovered or generated during the first 5 years of operation of the facility using the innovative energy recovery method, or such lesser amount that the Secretary determines to be the minimum amount that can cost-effectively stimulate such innovation.

(3)

Limitation

No person may receive an award under this section if a grant under the waste energy incentive grant program under section 373 of the Energy Policy and Conservation Act (42 U.S.C. 6343) is made for the same energy savings resulting from the same innovative method.

(c)

Regulatory status

The Secretary of Energy shall—

(1)

assist State regulatory commissions to identify and make changes in State regulatory programs for electric utilities to provide appropriate regulatory status for thermal energy byproduct businesses of regulated electric utilities to encourage those utilities to enter businesses making the sales referred to in subsection (a)(2); and

(2)

encourage self-regulated utilities to enter businesses making the sales referred to in subsection (a)(2).

(d)

Eligibility for seed loans

Owners and operators of electric energy generation and thermal energy production facilities shall be eligible for SEED Fund loans under subtitle D of title I to provide initial capital for entering into businesses involving sales referred to in subsection (a)(2).

(e)

Authorization of appropriations

There are authorized to be appropriated to the Secretary of Energy such sums as are necessary for the purposes of this section.

243.

Clarifying election of waste heat recovery financial incentives

Section 373(e) of the Energy Policy and Conservation Act (42 U.S.C. 6343(e)) is amended—

(1)

by striking that qualifies for and inserting who elects to claim; and

(2)

by inserting from that project after for waste heat recovery.

E

Improvements in energy savings performance contracting

251.

Energy savings performance contracts

(a)

Competition requirements for task or delivery orders under energy savings performance contracts

(1)

Competition requirements

Subsection (a) of section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the end the following paragraph:

(3)
(A)

The head of a Federal agency may issue a task or delivery order under an energy savings performance contract by—

(i)

notifying all contractors that have received an award under such contract that the agency proposes to discuss energy savings performance services for some or all of its facilities, soliciting an expression of interest in performing site surveys or investigations and feasibility designs and studies and the submission of qualifications from such contractors, and including in such notice summary information concerning energy use for any facilities that the agency has specific interest in including in such contract;

(ii)

reviewing all expressions of interest and qualifications submitted pursuant to the notice under clause (i);

(iii)

selecting two or more contractors (from among those reviewed under clause (ii)) to conduct discussions concerning the contractors’ respective qualifications to implement potential energy conservation measures, including requesting references demonstrating experience on similar efforts and the resulting energy savings of such similar efforts;

(iv)

selecting and authorizing—

(I)

more than one contractor (from among those selected under clause (iii)) to conduct site surveys, investigations, feasibility designs and studies or similar assessments for the energy savings performance contract services (or for discrete portions of such services), for the purpose of allowing each such contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures; or

(II)

one contractor (from among those selected under clause (iii)) to conduct a site survey, investigation, a feasibility design and study or similar for the purpose of allowing the contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures;

(v)

negotiating a task or delivery order for energy savings performance contracting services with the contractor or contractors selected under clause (iv) based on the energy conservation measures identified.; and

(vi)

issuing a task or delivery order for energy savings performance contracting services to such contractor or contractors.

(B)

The issuance of a task or delivery order for energy savings performance contracting services pursuant to subparagraph (A) is deemed to satisfy the task and delivery order competition requirements in section 2304c(d) of title 10, United States Code, and section 303J(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(d)).

(C)

The Secretary may issue guidance as necessary to agencies issuing task or delivery orders pursuant to subparagraph (A).

.

(2)

Effective date

The amendment made by paragraph (1) is inapplicable to task or delivery orders issued before the date of enactment of this section.

(b)

Inclusion of thermal renewable en