< Back to S. 1462 (111th Congress, 2009–2010)

Text of the American Clean Energy Leadership Act of 2009

This bill was introduced on July 16, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jul 16, 2009 (Placed on Calendar in the Senate).

Source: GPO

II

Calendar No. 110

111th CONGRESS

1st Session

S. 1462

[Report No. 111–48]

IN THE SENATE OF THE UNITED STATES

July 16, 2009

, from the Committee on Energy and Natural Resources, reported the following original bill; which was read twice and placed on the calendar

A BILL

To promote clean energy technology development, enhanced energy efficiency, improved energy security, and energy innovation and workforce development, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the American Clean Energy Leadership Act of 2009.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I—Clean energy technology deployment

Subtitle A—Clean energy financing

Sec. 101. Purpose.

Sec. 102. Definitions.

Sec. 103. Improvements to existing programs.

Sec. 104. Energy technology deployment goals.

Sec. 105. Clean Energy Deployment Administration.

Sec. 106. Administration functions.

Sec. 107. Federal Credit Authority.

Sec. 108. General provisions.

Subtitle B—Improved transmission siting

Sec. 121. Siting of interstate electric transmission facilities.

Subtitle C—Federal renewable electricity standard

Sec. 131. Sense of Congress on renewable energy and energy efficiency.

Sec. 132. Federal renewable electricity standard.

Sec. 133. Federal purchase requirement amendments.

Subtitle D—Energy and water integration

Sec. 141. Energy water nexus study.

Sec. 142. Power plant water and energy efficiency.

Sec. 143. Reclamation water conservation and energy savings study.

Sec. 144. Brackish groundwater national desalination research facility.

Sec. 145. Enhanced information on water-related energy consumption.

Sec. 146. Energy-Water Research and Development Roadmap.

Sec. 147. Energy-water clean technology grant program.

Sec. 148. Rural water utilities energy and water efficiency program.

Sec. 149. Comprehensive water use and energy savings study.

Subtitle E—Vehicle technology deployment

Sec. 151. Transportation roadmap study.

Sec. 152. Vehicle technology and recharging infrastructure.

Sec. 153. Electric drive transportation standardization.

Sec. 154. Pilot program for plug-in electric drive vehicles for Federal fleet.

Sec. 155. Study of end-of-useful life options for motor vehicle batteries.

TITLE II—Enhanced energy efficiency

Subtitle A—Manufacturing energy efficiency

Sec. 201. State partnership industrial energy efficiency revolving loan program.

Sec. 202. Coordination of research and development of energy efficient technologies for industry.

Sec. 203. Energy efficient technologies assessment.

Sec. 204. Future of Industry program.

Sec. 205. Sustainable manufacturing initiative.

Sec. 206. Innovation in industry grants.

Sec. 207. Study of advanced energy technology manufacturing capabilities in the United States.

Sec. 208. Industrial Technologies steering committee.

Sec. 209. Authorization of appropriations.

Subtitle B—Improved efficiency in appliances and equipment

Sec. 221. Test procedure petition process.

Sec. 222. Energy Star program.

Sec. 223. Petition for amended standards.

Sec. 224. Portable light fixtures.

Sec. 225. GU–24 base lamps.

Sec. 226. Standards for certain incandescent reflector lamps and reflector lamps.

Sec. 227. Standards for commercial furnaces.

Sec. 228. Motor efficiency rebate program.

Sec. 229. Study of compliance with energy standards for appliances.

Sec. 230. Study of direct current electricity supply in certain buildings.

Sec. 231. Motor market assessment and commercial awareness program.

Sec. 232. Study regarding Energy Superstar concept.

Sec. 233. Technical amendment.

Subtitle C—Building efficiency

PART I—Building codes

Sec. 241. Greater energy efficiency in building codes.

Sec. 242. Multifamily and Manufactured Housing Energy Efficiency Grant Program.

Sec. 243. Building training and assessment centers.

PART II—Weatherization assistance for low-income persons

Sec. 251. Weatherization assistance for low-income persons.

PART III—State Energy Program

Sec. 255. State Energy Program.

PART IV—State energy efficiency grants program

Sec. 261. Definitions.

Sec. 262. State energy efficiency retrofit programs.

Sec. 263. Administrative and technical support.

Sec. 264. Regulations.

Sec. 265. Funding.

Sec. 266. Home Energy Retrofit Finance Program.

PART V—Federal efficiency and renewables

Sec. 271. Federal purchase requirement.

Sec. 272. Competition requirements for task or delivery orders under energy savings performance contracts.

Sec. 273. Funding flexibility.

Sec. 274. Definition of energy savings.

Sec. 275. National energy efficiency improvement goals.

Sec. 276. Energy sustainability and efficiency grants and loans for institutions.

Sec. 277. Federal implementation strategy for energy-efficient information and communications technologies.

Sec. 278. Incentives for Federal agencies to participate in energy efficiency programs.

PART VI—Energy efficiency information on homes and buildings

Sec. 281. Building energy performance information program.

Sec. 282. Evaluation, measurement, and verification of energy savings.

PART VII—Residential High Performance Zero-Net-Energy Buildings Initiative

Sec. 291. Residential High Performance Zero-Net-Energy Buildings Initiative.

Subtitle D—Electric grid

Sec. 295. National electric system efficiency and peak demand reduction goal.

Sec. 296. Uniform national standards for interconnection of certain small power production facilities.

TITLE III—Improved energy security

Subtitle A—Cyber security of the electric transmission grid

Sec. 301. Critical electric infrastructure.

Subtitle B—Nuclear energy

Sec. 311. National Commission on Nuclear Waste.

Sec. 312. Sense of Congress regarding the strategic role of nuclear energy.

Sec. 313. Advanced fuel recycling process development.

Subtitle C—Improving United States Strategic Reserves

Sec. 321. Petroleum product reserve.

Sec. 322. Petroleum exchange authority.

Subtitle D—Federal oil and gas development

PART I—Oil and gas leasing

Sec. 331. Oil and Gas Permit Processing Improvement Fund.

Sec. 332. Facilitation of coproduction of geothermal energy on oil and gas leases.

PART II—Outer Continental Shelf

Sec. 341. Implementation of inventory of outer Continental Shelf resources.

Sec. 342. Alaska OCS permit processing coordination office.

Sec. 343. Moratorium of oil and gas leasing in certain areas of the Gulf of Mexico.

Sec. 344. Repeal of outer Continental Shelf deep water and deep gas royalty relief.

PART III—Miscellaneous

Sec. 351. Minerals Management Service.

Sec. 352. Preservation of geological and geophysical data.

Sec. 353. Alaska natural gas pipeline.

Sec. 354. Denali National Park and Preserve natural gas pipeline.

Sec. 355. Exemption of trans-Alaska oil pipeline system from certain requirements.

Sec. 356. Procurement and acquisition of alternative fuels.

Sec. 357. Geologic Materials Archiving Grant Program.

Subtitle E—Public land renewable energy deployment

Sec. 361. Renewable energy Federal permit coordination.

Sec. 362. Extension of funding for implementation of Geothermal Steam Act of 1970.

Sec. 363. Programmatic environmental impact statements and land use planning.

Sec. 364. Report.

Sec. 365. Renewable energy development on brownfield sites.

Sec. 366. Development of solar and wind energy on public land.

Subtitle F—Carbon capture

Sec. 371. Large-scale carbon storage program.

Sec. 372. Training program for State agencies.

Subtitle G—Island energy

Sec. 381. Affiliated island energy independence team.

TITLE IV—Energy innovation and workforce development

Subtitle A—Funding

Sec. 401. Authorization of appropriations for energy research, development, demonstration, and commercial application activities.

Subtitle B—Grand Energy Challenges Research Initiative

Sec. 411. Grand Energy Challenges Research Initiative.

Subtitle C—Improvements to existing energy research and development programs

Sec. 421. Advanced Research Projects Agency—Energy.

Sec. 422. Domestic vehicle battery manufacturing research.

Sec. 423. Lightweight materials research and development.

Sec. 424. Amendments to the Methane Hydrate Research and Development Act of 2000.

Sec. 425. Program to exploit low-Btu gas and conserve helium resources.

Sec. 426. Office of Arctic Energy.

Sec. 427. Ultra-deepwater and unconventional natural gas and other petroleum resources program.

Subtitle D—Energy workforce development

Sec. 431. Best practices for energy career academies.

Sec. 432. Energy career academies.

Sec. 433. Energy utility trades program for community colleges.

Sec. 434. Student awareness of energy career opportunities.

Sec. 435. Coordination of energy workforce training programs.

Sec. 436. Direct hire authority.

Sec. 437. Critical pay authority.

Sec. 438. Reemployment of civilian retirees.

Sec. 439. Sustainable energy training program for community colleges.

Subtitle E—Strengthening education and training in the subsurface geosciences and engineering for energy development

Sec. 451. Definitions.

Sec. 452. Policy.

Sec. 453. Research personnel and programs.

Sec. 454. Scholarships and fellowships.

Sec. 455. Career technical and community college education.

Sec. 456. Use of funds by institutions.

Sec. 457. Advisory Committee.

Sec. 458. Office; regulations.

Sec. 459. Authorization of appropriations.

Sec. 460. Study of availability of skilled workers.

Subtitle F—Miscellaneous

Sec. 471. Other transactions authority.

Sec. 472. Definition of National Laboratory.

Sec. 473. Protection of results.

Sec. 474. Marine and hydrokinetic renewable energy research and development.

TITLE V—Energy markets

Sec. 501. Enhanced information on critical energy supplies.

Sec. 502. Working Group on Energy Markets.

Sec. 503. Study of regulatory framework for energy markets.

Sec. 504. Metadata formats for energy prices.

Sec. 505. Emergency orders under the Federal Power Act.

Sec. 506. Cease-and-desist authority under the Federal Power Act.

Sec. 507. Cease-and-desist authority under the Natural Gas Act.

Sec. 508. De novo review of civil penalties under the Natural Gas Act.

TITLE VI—Policy studies and reports

Sec. 601. Helium gas resource assessment.

Sec. 602. Potash mineral resource assessment.

Sec. 603. Better energy strategy for tomorrow.

Sec. 604. Addressing climate change in China and India.

Sec. 605. Carbon leakage mitigation study.

Sec. 606. Study of foreign fuel subsidies.

Sec. 607. Assessment of renewable energy resources.

Sec. 608. Efficiency review of electric generation facilities.

Sec. 609. Report on emissions of alternative transportation fuels.

Sec. 610. Oil savings.

2.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Energy.

I

Clean energy technology deployment

A

Clean energy financing

101.

Purpose

The purpose of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the improvement of existing programs and the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of—

(1)

clean energy technologies;

(2)

advanced or enabling energy infrastructure technologies;

(3)

energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and

(4)

manufacturing technologies for any of the technologies or applications described in this section.

102.

Definitions

In this subtitle:

(1)

Administration

The term Administration means the Clean Energy Deployment Administration established by section 105.

(2)

Administrator

The term Administrator means the Administrator of the Administration.

(3)

Advisory Council

The term Advisory Council means the Energy Technology Advisory Council of the Administration.

(4)

Breakthrough technology

The term breakthrough technology means a clean energy technology that—

(A)

presents a significant opportunity to advance the goals developed under section 104, as assessed under the methodology established by the Advisory Council; but

(B)

has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.

(5)

Clean energy technology

The term clean energy technology means a technology related to the production, use, transmission, storage, control, or conservation of energy that will—

(A)

reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States;

(B)

diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; or

(C)

contribute to a stabilization of atmospheric greenhouse gas concentrations through reduction, avoidance, or sequestration of energy-related emissions.

(6)

Cost

The term cost has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(7)

Direct loan

The term direct loan has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(8)

Fund

The term Fund means the Clean Energy Investment Fund established by section 103(a).

(9)

Loan guarantee

The term loan guarantee has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(10)

National Laboratory

The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(11)

Secretary

The term Secretary means the Secretary of Energy.

(12)

Security

The term security has the meaning given the term in section 2 of the Securities Act of 1933 (15 U.S.C. 77b).

(13)

State

The term State means—

(A)

a State;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico; and

(D)

any other territory or possession of the United States.

(14)

Technology risk

The term technology risk means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.

103.

Improvements to existing programs

(a)

Clean Energy Investment Fund

(1)

Establishment

There is established in the Treasury of the United States a revolving fund, to be known as the Clean Energy Investment Fund, consisting of—

(A)

such amounts as have been appropriated for administrative expenses to carry out title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.);

(B)

such amounts as are deposited in the Fund under this subtitle and amendments made by this subtitle; and

(C)

such sums as may be appropriated to supplement the Fund.

(2)

Expenditures from Fund

(A)

In general

Notwithstanding section 1705(e) of the Energy Policy Act of 2005 (42 U.S.C. 16516(e)), amounts in the Fund shall be available to the Secretary for obligation without fiscal year limitation, to remain available until expended.

(B)

Administrative expenses

(i)

Fees

Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.

(ii)

Fund

To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.).

(3)

Transfers of amounts

(A)

In general

The amounts required to be transferred to the Fund under this subsection shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.

(B)

Cash flows

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

(C)

Adjustments

Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

(b)

Revisions to loan guarantee program authority

(1)

Definition of commercial technology

Section 1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by striking subparagraph (B) and inserting the following:

(B)

Exclusion

The term commercial technology does not include a technology if the sole use of the technology is in connection with—

(i)

a demonstration project; or

(ii)

a project for which the Secretary approved a loan guarantee.

.

(2)

Specific appropriation or contribution

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

(b)

Specific appropriation or contribution

(1)

In general

No guarantee shall be made unless sufficient amounts to account for the cost are available—

(A)

in unobligated balances within the Clean Energy Investment Fund established under section 103(a) of the American Clean Energy Leadership Act of 2009;

(B)

as a payment from the borrower and the payment is deposited in the Clean Energy Investment Fund; or

(C)

in any combination of balances and payments described in subparagraphs (A) and (B), respectively.

(2)

Limitation

The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.

(3)

Relation to other laws

Section 504(b) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or loan guarantee under this section.

.

(3)

Subrogation

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

(B)

Superiority of rights

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

(C)

Terms and conditions

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

(i)

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

(ii)

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

(iii)

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

(iv)

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

.

(4)

Fees

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

(2)

Availability

Fees collected under this subsection shall—

(A)

be deposited by the Secretary in the Clean Energy Investment Fund established under section 103(a) of the American Clean Energy Leadership Act of 2009; and

(B)

remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.

(3)

Adjustment

The Secretary may adjust the amount or manner of collection of fees under this title as the Secretary determines is necessary to promote, to the maximum extent practicable, eligible projects under this title.

(4)

Excess fees

Of the amount of a fee imposed on an applicant at the conditional commitment stage, 75 percent of the amount shall be refundable to the applicant if there is no financial close on the application, unless the Secretary determines that the administrative costs of the Department have exceeded the amount retained.

(5)

Credit report

If, in the opinion of the Secretary, the credit rating of an applicant is not relevant to the determination of whether or not support will be provided and the applicant agrees to accept the credit rating assigned to the applicant by the Secretary, the Secretary may waive any requirement to provide a third-party credit report.

.

(5)

Processing

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following:

(k)

Accelerated reviews

To the maximum extent practicable and consistent with sound business practices, the Secretary shall seek to conduct necessary reviews concurrently of an application for a loan guarantee under this title such that decisions as to whether to enter into a commitment on the application can be issued not later than 180 days after the date of submission of a completed application.

.

(6)

Wage rates

Section 1705(c) of the Energy Policy Act of 2005 (42 U.S.C. 16516(c)) is amended by striking support under this section and inserting support under this title.

104.

Energy technology deployment goals

(a)

Goals

Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment in the Federal Register near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by this subtitle (including an amendment made by this subtitle) to promote—

(1)

sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;

(2)

clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;

(3)

a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;

(4)

installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;

(5)

the transformation of the building stock of the United States to zero net energy consumption;

(6)

the recovery, use, and prevention of waste energy;

(7)

domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;

(8)

domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;

(9)

a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, smart grid functions, and demand-response in each regional electric grid;

(10)

sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods; and

(11)

such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purposes of this subtitle.

(b)

Revisions

The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in energy policy.

105.

Clean Energy Deployment Administration

(a)

Establishment

(1)

In general

There is established in the Department of Energy an administration to be known as the Clean Energy Deployment Administration, under the direction of the Administrator and the Board of Directors.

(2)

Status

(A)

In general

The Administration (including officers, employees, and agents of the Administration) shall not be responsible to, or subject to the authority, direction, or control of, any other officer, employee, or agent of the Department of Energy other than the Secretary, acting through the Administrator.

(B)

Exemption from reorganization

The Administration shall be exempt from the reorganization authority provided under section 643 of the Department of Energy Organization Act (42 U.S.C. 7253).

(C)

Inspector general

Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—

(i)

in paragraph (1), by inserting the Administrator of the Clean Energy Deployment Administration; after Export-Import Bank;; and

(ii)

in paragraph (2), by inserting the Clean Energy Deployment Administration, after Export-Import Bank,.

(3)

Offices

(A)

Principal office

The Administration shall—

(i)

maintain the principal office of the Administration in the District of Columbia; and

(ii)

for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.

(B)

Other offices

The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.

(b)

Administrator

(1)

In general

The Administrator shall be—

(A)

appointed by the President, with the advice and consent of the Senate, for a 5-year term; and

(B)

compensated at the annual rate of basic pay prescribed for level II of the Executive Schedule under section 5313 of title 5, United States Code.

(2)

Duties

The Administrator shall—

(A)

serve as the Chief Executive Officer of the Administration and Chairman of the Board;

(B)

ensure that—

(i)

the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262));

(ii)

the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;

(iii)

the Administration carries out the purposes of this subtitle only through activities that are authorized under and consistent with this subtitle; and

(iv)

the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;

(C)

develop policies and procedures for the Administration that will—

(i)

promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;

(ii)

promote transparency and openness in Administration operations;

(iii)

afford the Administration with sufficient flexibility to meet the purposes of this subtitle;

(iv)

provide for the efficient processing of applications;

(v)

promote, consistent with the purposes of this Act, the participation of private financial institutions and other sources of private capital, on commercially reasonable terms, if and to the extent the capital is available; and

(vi)

promote the availability of financial products to small business through working with entities that have appropriate expertise extending credit or other relevant financial services to small companies developing clean energy technologies; and

(D)

with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 106(a)(1)(C).

(c)

Board of Directors

(1)

In general

The Board of Directors of the Administration shall consist of—

(A)

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

(B)

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

(C)

7 additional members who shall—

(i)

be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; and

(ii)

have experience in banking or financial services relevant to the operations of the Administration, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.

(2)

Duties

The Board of Directors shall—

(A)

oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;

(B)

consult with the Administrator on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;

(C)

ensure the portfolio of investments are consistent with purposes of this subtitle and with the long-term financial stability of the Administration;

(D)

ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; and

(E)

not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.

(3)

Removal

An appointed member of the Board of Directors may be removed from office by the President for good cause.

(4)

Vacancies

An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term of the vacating member.

(5)

Compensation of members

An appointed member of the Board of Directors shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level III of the Executive Schedule under section 5314 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Board of Directors.

(d)

Energy Technology Advisory Council

(1)

In general

The Administration shall have an Energy Technology Advisory Council consisting of—

(A)

5 members selected by the Secretary; and

(B)

3 members selected by the Board of Directors of the Administration.

(2)

Qualifications

The members of the Advisory Council shall—

(A)

have relevant scientific expertise; and

(B)

in the case of the members selected by the Secretary under paragraph (1)(A), include representatives of—

(i)

the academic community;

(ii)

the private research community;

(iii)

National Laboratories;

(iv)

the technology or project development community; and

(v)

the commercial energy financing and operations sector.

(3)

Duties

The Advisory Council shall—

(A)

develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; and

(B)

advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 104.

(4)

Term

(A)

In general

Members of the Advisory Council shall have 5-year staggered terms, as determined by the Secretary and the Administrator.

(B)

Reappointment

A member of the Advisory Council may be reappointed.

(5)

Compensation

A member of the Advisory Council, who is not otherwise compensated as a Federal employee, shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Advisory Council.

(e)

Staff

(1)

In general

The Administrator, in consultation with the Board of Directors, may—

(A)

appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; and

(B)

vest those personnel with such powers and duties as the Administrator may determine.

(2)

Direct hire authority

(A)

In general

Notwithstanding section 3304 and sections 3309 through 3318 of title 5, United States Code, the Administrator may, on a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified critical personnel with specialized knowledge important to the function of the Administration into the competitive service.

(B)

Exception

The authority granted under subparagraph (A) shall not apply to positions in the excepted service or the Senior Executive Service.

(C)

Requirements

In exercising the authority granted under subparagraph (A), the Administrator shall ensure that any action taken by the Administrator—

(i)

is consistent with the merit principles of section 2301 of title 5, United States Code; and

(ii)

complies with the public notice requirements of section 3327 of title 5, United States Code.

(D)

Termination of effectiveness

The authority provided by this paragraph terminates effective on the date that is 2 years after the date of enactment of this Act.

(3)

Critical pay authority

(A)

In general

Notwithstanding section 5377 of title 5, United States Code, and without regard to the provisions of that title governing appointments in the competitive service or the Senior Executive Service and chapters 51 and 53 of that title (relating to classification and pay rates), the Administrator may establish, fix the compensation of, and appoint individuals to critical positions needed to carry out the functions of the Administration, if the Administrator certifies that—

(i)

the positions require expertise of an extremely high level in a financial, technical, or scientific field;

(ii)

the Administration would not successfully accomplish an important mission without such an individual; and

(iii)

exercise of the authority is necessary to recruit an individual who is exceptionally well qualified for the position.

(B)

Limitations

The authority granted under subparagraph (A) shall be subject to the following conditions:

(i)

The number of critical positions authorized by subparagraph (A) may not exceed 20 at any 1 time in the Administration.

(ii)

The term of an appointment under subparagraph (A) may not exceed 4 years.

(iii)

An individual appointed under subparagraph (A) may not have been an Administration employee at any time during the 2-year period preceding the date of appointment.

(iv)

Total annual compensation for any individual appointed under subparagraph (A) may not exceed the highest total annual compensation payable at the rate determined under section 104 of title 3, United States Code.

(v)

An individual appointed under subparagraph (A) may not be considered to be an employee for purposes of subchapter II of chapter 75 of title 5, United States Code.

(C)

Notification

Each year, the Administrator shall submit to Congress a notification that lists each individual appointed under this paragraph.

106.

Administration functions

(a)

Operational units

(1)

Direct support

(A)

In general

The Administration may issue direct loans, letters of credit, loan guarantees, insurance products, or such other credit enhancements (including through participation as a co-lender or a lending member of a syndication) as the Administrator considers appropriate to deploy clean energy technologies if the Administrator has determined that deployment of the technologies would benefit or be accelerated by the support.

(B)

Eligibility criteria

In carrying out this paragraph and awarding credit support to projects, the Administrator shall account for—

(i)

how the technology rates based on an evaluation methodology established by the Advisory Council;

(ii)

how the project fits with the goals established under section 104; and

(iii)

the potential for the applicant to successfully complete the project.

(C)

Risk

(i)

Expected loan loss reserve

The Administrator shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of—

(I)

developing breakthrough technologies to the point at which technology risk is largely mitigated;

(II)

achieving widespread deployment and advancing the commercial viability of clean energy technologies; and

(III)

advancing the goals established under section 104.

(ii)

Initial expected loan loss reserve

Until such time as the Administrator determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.

(iii)

Portfolio investment approach

The Administration shall—

(I)

use a portfolio investment approach to mitigate risk and diversify investments across technologies;

(II)

to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 104; and

(III)

consistent with the expected loan loss reserve established under this subparagraph, the purposes of this subtitle, and section 105(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies.

(iv)

Loss rate review

(I)

In general

The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.

(II)

Report

Not later than 90 days after the date of the initiation of the review, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the review and any recommended policy changes.

(D)

Application review

(i)

In general

To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.

(ii)

Environmental review

In carrying out this subtitle, the Administration shall, to the maximum extent practicable—

(I)

avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); and

(II)

with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.

(E)

Wage rate requirements

(i)

In general

No credit support shall be issued under this section unless the borrower has provided to the Administrator reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.

(ii)

Labor standards

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.

(2)

Indirect support

(A)

In general

The Administration shall work to develop financial products and arrangements to both promote the widespread deployment of, and mobilize private sector support of credit and investment institutions for, clean energy technologies by facilitating aggregation of small projects and by providing indirect credit support, including credit enhancement.

(B)

Financial products

The Administration—

(i)

in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that provide for the aggregation of, or directly aggregate, projects for clean energy technology deployments on a scale appropriate for residential or commercial applications; and

(ii)

may insure, purchase, and make commitments to purchase, any debt instrument associated with the deployment of clean energy technologies (including instruments secured by liens or other collateral related to the funding of clean energy technology) for the purposes of enhancing the availability of private financing for clean energy technology deployments.

(C)

Disposition of debt or interest

The Administration may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt.

(D)

Pricing

(i)

In general

The Administrator may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of sellers, servicers, or services.

(ii)

Classification of sellers and servicers

For the purpose of clause (i), the Administrator may classify sellers and servicers as necessary to promote transparency and liquidity and properly characterize the risk of default.

(E)

Eligibility

The Administrator shall establish—

(i)

eligibility criteria for loan originators, sellers, and servicers seeking support for portfolios of financial obligations relating to clean energy technologies so as to ensure the capability of the loan originators, sellers, and servicers to perform the functions required to maintain the expected performance of the portfolios; and

(ii)

such criteria, standards, guidelines, and mechanisms such that, to the maximum extent practicable, loan originators and sellers will be able to determine the eligibility of loans for resale at the time of initial lending.

(F)

Secondary market support

(i)

In general

The Administration may lend on the security of, and make commitments to lend on the security of, any debt that the Administration has issued or is authorized to purchase under this section.

(ii)

Authorized actions

On such terms and conditions as the Administrator may prescribe, the Administration may, based on the debt and with the concurrence of the Board of Directors—

(I)

give security or guarantee;

(II)

pay interest or other return; and

(III)

issue notes, debentures, bonds, or other obligations or securities.

(G)

Lending activities

(i)

In general

The Administrator shall determine—

(I)

the volume of the lending activities of the Administration; and

(II)

the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Administration.

(ii)

Objectives

Determinations under clause (i) shall be consistent with the objectives of—

(I)

providing an attractive investment environment for clean energy technologies;

(II)

making the operations of the Administration self-supporting over the long term; and

(III)

advancing the goals established under section 104.

(H)

Exempt securities

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

(b)

Other authorized programs

(1)

In general

The Secretary may delegate to the Administration the provision of financial services and program management for grant, loan, and other credit enhancement programs authorized under any other provision of law.

(2)

Administration

In administering any other program delegated by the Secretary, the Administration shall, to the maximum extent practicable (as determined by the Administrator)—

(A)

administer the program in a manner that is consistent with the terms and conditions of this subtitle; and

(B)

minimize the administrative costs to the Federal Government.

107.

Federal Credit Authority

(a)

Transfer of functions and authority

(1)

In general

Subject to paragraph (2), on a finding by the Secretary and the Administrator that the Administration is sufficiently ready to assume the functions and that applicants to those programs will not be unduly adversely affected but in no case later than 18 months after the date of enactment of this Act, all of the functions and authority of the Secretary under title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) and authorities established by this subtitle shall be transferred to the Administration.

(2)

Failure to transfer functions

If the functions and authorities are not transferred to the Administration in accordance with paragraph (1), the Secretary and the Administrator shall submit to Congress a report on the reasons for delay and an expected timetable for transfer of the functions and authorities to the Administration.

(3)

Effect on existing rights and obligations

The transfer of functions and authority under this subsection shall not affect the rights and obligations of any party that arise under a predecessor program or authority prior to the transfer under this subsection.

(4)

Transfer of fund authority

(A)

In general

On transfer of functions pursuant to paragraph (1), the Administration shall have all authorities to make use of the Fund reserved for the Secretary before the transfer.

(B)

Administrative expenses

Effective beginning on the date of enactment of this Act, the Administrator may make use of up to 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year to pay administrative expenses for that fiscal year to carry out the purposes of this Act.

(5)

Use

(A)

In general

Amounts in the Fund shall be available for discharge of liabilities and all other expenses of the Administration, including subsequent transfer to the respective credit accounts.

(B)

Liability

All activities of the Administration that could result in a liability for the United States shall be transparently accounted for and no obligation or liability may be incurred unless—

(i)

the appropriate amounts are transferred to credit accounts for activities pursuant to the Federal Credit Reform Act of 1990 (2 U.S.C. 661a); or

(ii)

sufficient amounts are reserved within the Fund to account for such liabilities.

(6)

Initial investment

(A)

In general

On transfer of functions pursuant to paragraph (1), out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Fund to carry out this subtitle $10,000,000,000, to remain available until expended.

(B)

Receipt and acceptance

The Fund shall be entitled to receive and shall accept, and shall be used to carry out this subtitle, the funds transferred to the Fund under subparagraph (A), without further appropriation.

(7)

Authorization of appropriations

In addition to funds made available by paragraphs (1) through (6), there are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.

(b)

Payments of liabilities

(1)

In general

Any payment to discharge liabilities arising from agreements under this subtitle shall be made exclusively out of the Fund or the associated credit account, as appropriate.

(2)

Security

Subject to paragraph (1), the full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.

(c)

Fees

(1)

In general

Consistent with achieving the purposes of this subtitle, the Administrator shall charge fees or collect compensation generally in accordance with commercial rates.

(2)

Availability of fees

All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purposes of this subtitle.

(3)

Breakthrough technologies

The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.

(4)

Alternative fee arrangements

The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.

(d)

Cost transfer authority

Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit program accounts.

(e)

Supplemental Borrowing Authority

In order to maintain sufficient liquidity for activities authorized under section 106(a)(2), the Administration may issue notes, debentures, bonds, or other obligations for purchase by the Secretary of the Treasury.

(f)

Public debt transactions

For the purpose of subsection (e)—

(1)

the Secretary of the Treasury may use as a public debt transaction the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code; and

(2)

the purposes for which securities may be issued under that chapter are extended to include any purchase under this subsection.

(g)

Maximum outstanding holding

The Secretary of the Treasury shall purchase instruments issued under subsection (e) to the extent that the purchase would not increase the aggregate principal amount of the outstanding holdings of obligations under subsection (e) by the Secretary of the Treasury to an amount that is greater than $2,000,000,000.

(h)

Rate of return

Each purchase of obligations by the Secretary of the Treasury under this section shall be on terms and conditions established to yield a rate of return determined by the Secretary of the Treasury to be appropriate, taking into account the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the purchase.

(i)

Sale of obligations

The Secretary of the Treasury may at any time sell, on terms and conditions and at prices determined by the Secretary of the Treasury, any of the obligations acquired by the Secretary of the Treasury under this section.

(j)

Public debt transactions

All redemptions, purchases, and sales by the Secretary of the Treasury of obligations under this section shall be treated as public debt transactions of the United States.

108.

General provisions

(a)

Immunity from impairment, limitation, or restriction

(1)

In general

All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under—

(A)

any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; or

(B)

any administrative or other action that becomes effective after the acquisition.

(2)

State law

The Administrator may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.

(b)

Use of other agencies

With the consent of a department, establishment, or instrumentality (including any field office), the Administration may—

(1)

use and act through any department, establishment, or instrumentality; or

(2)

use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.

(c)

Procurement

The Administrator shall be the senior procurement officer for the Administration for purposes of section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a)).

(d)

Financial matters

(1)

Investments

Funds of the Administration may be invested in such investments as the Board of Directors may prescribe.

(2)

Fiscal agents

Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator there is outstanding a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator as a depositary or custodian or as a fiscal or other agent of the Administration.

(e)

Jurisdiction

Notwithstanding section 1349 of title 28, United States Code, or any other provision of law—

(1)

the Administration shall be considered a corporation covered by sections 1345 and 1442 of title 28, United States Code;

(2)

all civil actions to which the Administration is a party shall be considered to arise under the laws of the United States, and the district courts of the United States shall have original jurisdiction of all such actions, without regard to amount or value; and

(3)

any civil or other action, case or controversy in a court of a State, or in any court other than a district court of the United States, to which the Administration is a party may at any time before trial be removed by the Administration, without the giving of any bond or security and by following any procedure for removal of causes in effect at the time of the removal—

(A)

to the district court of the United States for the district and division embracing the place in which the same is pending; or

(B)

if there is no such district court, to the district court of the United States for the district in which the principal office of the Administration is located.

(f)

Periodic reports

Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a description of—

(1)

the technologies supported by activities of the Administration and how the activities advance the purposes of this subtitle; and

(2)

the performance of the Administration on meeting the goals established under section 104.

(g)

Audits by the Comptroller General

(1)

In general

The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.

(2)

Access

The representatives of the Government Accountability Office shall—

(A)

have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;

(B)

be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;

(C)

be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; and

(D)

have the right of access of the Comptroller General to such information pursuant to section 716(c) of title 31, United States Code.

(3)

Assistance and cost

(A)

In general

For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.

(B)

Reimbursement

(i)

In general

On the request of the Comptroller General, the Administration shall reimburse the General Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.

(ii)

Crediting

Such reimbursements shall—

(I)

be credited to the appropriation account entitled Salaries and Expenses, Government Accountability Office at the time at which the payment is received; and

(II)

remain available until expended.

(h)

Annual independent audits

(1)

In general

The Administrator shall—

(A)

have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; and

(B)

submit to the Secretary the results of the audit.

(2)

Content

In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration—

(A)

are presented fairly in accordance with generally accepted accounting principles; and

(B)

comply with any disclosure requirements imposed under this subtitle.

(i)

Financial reports

(1)

In general

The Administrator shall submit to the Secretary annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.

(2)

Contents of annual reports

Each annual report shall include—

(A)

financial statements prepared in accordance with generally accepted accounting principles;

(B)

any supplemental information or alternative presentation that the Secretary may require; and

(C)

an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of—

(i)

the effectiveness of the internal control structure and procedures of the Administration; and

(ii)

the compliance of the Administration with applicable safety and soundness laws.

(3)

Special reports

The Secretary may require the Administrator to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.

(4)

Accuracy

Each report of financial condition shall contain a declaration by the Administrator or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.

(5)

Availability of reports

Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.

(j)

Scope and termination of authority

(1)

New obligations

The Administrator shall not initiate any new obligations under this subtitle on or after January 1, 2029.

(2)

Reversion to Secretary

The authorities and obligations of the Administration shall revert to the Secretary on January 1, 2029.

B

Improved transmission siting

121.

Siting of interstate electric transmission facilities

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

216.

Siting of interstate electric transmission facilities

(a)

Policy

It is the policy of the United States that the national interstate transmission system should be guided by the goal of maximizing the net benefits of the electricity system, taking into consideration—

(1)

support for the development of new renewable energy generation capacity, including renewable energy generation located distant from load centers and other location-constrained resources;

(2)

opportunities for reduced emissions from regional power production;

(3)

cost savings resulting from—

(A)

reduced transmission congestion;

(B)

enhanced opportunities for intraregional and interregional electricity trades;

(C)

reduced line losses;

(D)

generation resource-sharing; and

(E)

enhanced fuel diversity;

(4)

reliability benefits, including satisfying reliability standards and guidelines for resource adequacy and system security;

(5)

diversification of risk relating to events affecting fuel supply or generating resources in a particular region;

(6)

the enhancement of competition in electricity markets and mitigation of market power;

(7)

the ability to collocate facilities on existing rights-of-way;

(8)

competing land use priorities, including land protected under Federal or State law;

(9)

the requirements of section 217(b)(4); and

(10)

the contribution of demand side management (including energy efficiency and demand response), energy storage, distributed generation resources, and smart grid investments.

(b)

Definitions

In this section:

(1)

High-priority national transmission project

The term high-priority national transmission project means an overhead or underground transmission facility, consisting of conductors or cables, towers, manhole duct systems, phase shifting transformers, reactors, capacitors, and any ancillary facilities and equipment necessary for the proper operation of the facility, that—

(A)
(i)

operates at or above a voltage of—

(I)

345 kilovolts alternating current; or

(II)

300 kilovolts direct current;

(ii)

is a very high current conductor or superconducting cable that operates at or above a power equivalent to the power of a conventional transmission cable operating at or above 345 kilovolts alternating current or 300 kilovolts direct current; or

(iii)

is a renewable feeder line that transmits electricity directly to a transmission facility under clause (i) or (ii); and

(B)

is included in a regional plan pursuant to subsection (c).

(2)

Indian land

The term Indian land means land—

(A)

the title to which is held by the United States in trust for an Indian tribe or individual Indian; or

(B)

that is held by an Indian tribe or individual Indian subject to a restriction by the United States against alienation or encumbrance.

(3)

Indian tribe

The term Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation (as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

(4)

Load-serving entity

Except as otherwise provided in this section, the term load-serving entity means any person, Federal, State, or local agency or instrumentality, or electric cooperative that delivers electric energy to end-use customers.

(5)

Location-constrained resource

(A)

In general

The term location-constrained resource means a low-carbon resource used to produce electricity that is geographically constrained such that the resource cannot be relocated to an existing transmission line.

(B)

Inclusions

The term location-constrained resource includes the following types of resources described in subparagraph (A):

(i)

Renewable energy, including offshore resources.

(ii)

A fossil fuel electricity plant equipped with carbon capture technology that is located at a site that is appropriate for carbon storage or beneficial reuse.

(6)

Renewable energy

The term renewable energy means electric energy generated from—

(A)

solar energy;

(B)

wind energy;

(C)

marine and hydrokinetic renewable energy;

(D)

geothermal energy;

(E)

hydropower;

(F)

biomass; or

(G)

landfill gas.

(7)

Renewable feeder line

The term renewable feeder line means a transmission line that—

(A)

operates at a voltage of 100 kilovolts or greater; and

(B)

is identified in the applicable Interconnection-wide transmission plan or by the Commission as a facility that is to be developed to facilitate collection of electric energy produced by renewable energy.

(8)

Secretary

The term Secretary means the Secretary of Energy.

(c)

Plans for national interstate transmission system

(1)

In general

The Commission shall coordinate regional planning to ensure that regional plans are integrated into an Interconnection-wide transmission plan with respect to high-priority national transmission projects, that achieves the policy established under subsection (a).

(2)

Planning principles

(A)

In general

Not later than 180 days after the date of enactment of the American Clean Energy Leadership Act of 2009, the Commission shall issue, by rule, after notice and opportunity for comment, national electricity grid planning principles pursuant to the policy established under subsection (a).

(B)

Content

The principles shall—

(i)

address how the utilities should fully incorporate consideration of the need for high-priority national transmission projects into planning efforts;

(ii)

address how the utilities should coordinate with each other, States, Indian tribes, and other planning efforts in the applicable Interconnection to effectively develop an Interconnection-wide analysis to identify needed additions or modifications to high-priority national transmission projects, with particular attention to identifying needs that can be most efficiently and effectively addressed with high-priority national transmission projects that cross multiple utilities, Regional Transmission Organizations, or Independent System Operators;

(iii)
(I)

address alternatives to high-priority national transmission projects, based on the factors described in subparagraph (C)(iii); and

(II)

determine whether alternative investments can provide a more expedient means of improving electricity system capacity or reliability or reduced costs for end-users; and

(iv)

include mechanisms for soliciting input from the Secretary, Federal transmitting utilities, the Secretary of the Interior, States, Indian tribes, electric reliability organizations, regional entities, entities described in section 201(f), generators, load-serving entities, other interested parties, and the public.

(C)

Factors

Plans for the development and improvement of high-priority national transmission projects into a national high-capacity transmission grid shall take into consideration—

(i)

the location of load centers;

(ii)

the location of generation and potential generation development, including location-constrained resources;

(iii)

existing and potential demand side management (including energy efficiency and demand response), energy storage, distributed generation resources, and smart grid investments;

(iv)

the plans of Regional Transmission Organizations, Independent System Operators, State authorities, Indian tribes, transmission owners, load-serving entities, and others in the region;

(v)

the needs and long-term rights described in section 217(b); and

(vi)

costs to consumers of high priority national transmission projects, including considering the cost of reasonable alternatives.

(3)

Submission of plans

(A)

In general

(i)

In general

One or more public utilities, transmitting utilities, Regional Transmission Organizations, Independent System Operators, regional entities (as defined in section 215(a)), or other multistate organizations or entities (including entities described in section 201(f)) may develop a regional plan relating to 1 or more high-priority national transmission projects that is consistent with the planning principles established by the Commission.

(ii)

Other plans

(I)

In general

Any public utility or transmitting utility that does not participate in 1 of the regional plans developed under clause (i) shall develop its own plan relating to any high priority national transmission project planned for the system of the utility.

(II)

Planning principles

The plan shall be consistent with the planning principles established by the Commission.

(iii)

Timing

Any plan developed under clause (i) or (ii) shall be submitted to the Commission—

(I)

as soon as practicable, but not later than 2 years, after the date of enactment of the American Clean Energy Leadership Act of 2009; and

(II)

periodically thereafter as prescribed by the Commission.

(B)

Coordination

(i)

Joint submissions

The requirements of subparagraph (A) may be satisfied by a joint submission.

(ii)

Single Interconnection-wide plan

The Commission shall encourage coordination that would permit submission of a single Interconnection-wide plan for high priority national transmission projects.

(C)

Modifications

The Commission may require modification of a submitted plan to the extent that the Commission determines that the modification is necessary—

(i)

to reconcile inconsistencies between plans submitted; or

(ii)

to achieve the policy goals established under subsection (a).

(4)

Applicability

The transmission planning principles and requirements of this subsection shall apply to each transmission owner and transmission planning entity in the United States portion of the Eastern and Western Interconnections, including an entity described in section 201(f).

(d)

Siting

(1)

Purposes

The purpose of this subsection is to ensure that high-priority national transmission projects are in the public interest and advance the policy established under subsection (a).

(2)

Designation of eligibility

The Commission may grant an applicant that submits an application for a proposed project a designation of eligibility for consideration under this subsection if the Commission finds that the proposed project is a high-priority national transmission project.

(3)

State review of project siting

(A)

In general

No developer of a high-priority national transmission project may seek a certificate for construction under subsection (e) unless the developer first seeks authorization to construct the high-priority national transmission project under applicable State law concerning authorization and routing of transmission facilities.

(B)

Federal authority

The Commission may authorize, in accordance with subsection (e), construction of a high-priority national transmission project that the Commission finds to be in the public interest and in accordance with this section if a State—

(i)

fails to approve construction and authorize routing of a high-priority national transmission project not later than 1 year after the date the applicant submits a completed application for authorization to the State;

(ii)

rejects the application for a high-priority national transmission project; or

(iii)

authorizes the high-priority national transmission project subject to conditions that unreasonably interfere with the development of a high-priority national transmission project contrary to the purposes of this section.

(e)

Construction

(1)

Application for certificate

(A)

In general

An applicant for a high-priority national transmission project may apply to the Commission for a certificate of public convenience and necessity with respect to construction of the high-priority national transmission project within a State affected by the high-priority national transmission project if the State—

(i)

fails to authorize construction of the high-priority national transmission project under State law not later than 1 year after the date the developer submits a completed application for authorization to the State;

(ii)

rejects the application for the high-priority national transmission project; or

(iii)

authorizes the high-priority national transmission project subject to conditions that unreasonably interfere with the development of a high-priority national transmission project contrary to the purposes of this section.

(B)

Form

The application for a certificate shall be made in writing in such form and containing such information as the Commission may by regulation require.

(C)

Hearing

On receipt of an application under this paragraph, the Commission—

(i)

shall provide notice to interested persons and opportunity for hearing; and

(ii)

may approve (with or without conditions) or disapprove the application, in accordance with paragraph (2).

(2)

Grant of certificate

(A)

In general

A certificate shall be issued to a qualified applicant for a certificate authorizing the whole or partial operation, construction, acquisition, or modification covered by the application, only if the Commission determines that—

(i)

the applicant is able and willing—

(I)

to do the acts and to perform the service proposed; and

(II)

to comply with this Act (including regulations); and

(ii)

the proposed operation, construction, acquisition, or modification, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity.

(B)

Terms and conditions

The Commission shall have the power to attach to the issuance of a certificate under this paragraph and to the exercise of the rights granted under the certificate such reasonable terms and conditions as the public convenience and necessity may require.

(C)

Use of State work

If 1 or more States reject or fail to act on a high-priority national transmission project and the Commission has siting authority for the high-priority national transmission project under this section, the Commission shall give due weight to—

(i)

the environmental record and results of the siting process of a State that did complete the siting process of the State under this section; and

(ii)

the information that had been submitted by an applicant to the State under this section.

(D)

Evaluation of abilities of applicant

(i)

In general

In evaluating the ability of an applicant described in subparagraph (A)(i), the Commission shall consider whether the financial and technical capabilities of the applicant are adequate to support construction and operation of the high-priority national transmission project proposed in the application.

(ii)

Joint ownership projects

In evaluating applications under paragraph (1), the Commission shall consider benefits from the greater diversification of financial risk inherent in the applications involving joint ownership projects by multiple load-serving entities.

(E)

Public convenience and necessity

In making a determination with respect to public convenience and necessity described in subparagraph (A)(ii), the Commission shall—

(i)

consider whether the facilities covered by an application are included in an Interconnection-wide transmission grid plan for a high-priority national transmission project developed pursuant to subsection (c); and

(ii)

determine whether the facilities covered by the application are in the public interest.

(3)

Right of eminent domain

If any holder of a certificate issued under paragraph (2) cannot acquire by contract, or is unable to agree with the owner of property on the compensation to be paid for, the necessary right-of-way to construct, operate, and maintain the high-priority national transmission project to which the certificate relates, and the necessary land or other property necessary to the proper operation of the high-priority national transmission project, the holder may acquire the right-of-way by the exercise of the right of eminent domain in—

(A)

the United States district court for the district in which the property is located; or

(B)

a State court.

(4)

State and tribal recommendations

In granting a certificate under paragraph (2), the Commission shall—

(A)

permit State regulatory agencies and affected Indian tribes to recommend mitigation measures, based on habitat protection, environmental considerations, or cultural site protection; and

(B)
(i)

incorporate those identified mitigation measures as conditions on the certificate; or

(ii)

if the Commission determines that a recommended mitigation measure is inconsistent with the purposes of this section, infeasible, or not cost-effective—

(I)

consult with State regulatory agencies and affected Indian tribes to seek to resolve the issue;

(II)

incorporate as conditions on the certificate such recommended mitigation measures as are determined to be appropriate by the Commission, based on consultation by the Commission with State regulatory agencies and affected Indian tribes, the purposes of this section, and the record before the Commission; and

(III)

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

(5)

State or local authorizations

An applicant receiving a certificate under this subsection with respect to construction or modification of a high-priority national transmission project in a State shall not require a separate siting authorization from the State or any local authority within the State.

(6)

Rights-of-way over Indian land

Notwithstanding paragraph (3), in the case of siting, construction, operation, and maintenance of a transmission facility to be located on or over Indian land, a certificate holder under this section shall comply with the requirements of Federal law for obtaining rights-of-way on or over Indian land.

(f)

Coordination of Federal authorizations for transmission facilities

(1)

Definition of Federal authorization

In this subsection, the term Federal authorization means any authorization required under Federal law in order to site a transmission facility on Federal land, including such permits, special use authorizations, certifications, opinions, or other approvals as may be required under Federal law in order to site a transmission facility.

(2)

Lead agency

If a Federal authorization for a high-priority national transmission project involves land under the jurisdiction of the Department of the Interior and any other Federal agency, the Secretary of the Interior shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews.

(3)

Coordination

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

(4)

Milestones and deadlines

(A)

In general

As the lead agency, the Secretary of the Interior, in consultation with the Commission and any other agency responsible for Federal authorizations and, as appropriate, with Indian tribes, multistate entities, and State agencies that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed high-priority national transmission project.

(B)

Deadline

The Secretary of the Interior shall ensure that, once an application has been submitted with such data as the Commission and the Secretaries with jurisdiction over the affected land consider necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed not later than 1 year after the date of submission.

(C)

Preapplication information

The Secretary of the Interior, in consultation with the Commission, shall provide an expeditious preapplication mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning—

(i)

the likelihood of approval for a potential facility; and

(ii)

key issues of concern to the agencies and public.

(5)

Environmental review document

(A)

In general

As lead agency, the Secretary of the Interior, in consultation with the Commission and any affected agency, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed high-priority national transmission project under Federal law.

(B)

Streamlining

The Secretary of the Interior and the Secretary of Agriculture, in consultation with the Commission, shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1763) or section 368 of the Energy Policy Act of 2005 (42 U.S.C. 15926) by fully taking into account prior analyses and decisions relating to the corridors.

(C)

Comments

If the high-priority national transmission project includes Federal land that is not under the jurisdiction of the Department of the Interior, the document shall include comments made by the Secretary with jurisdiction over the affected land on matters necessary for the protection of the land or required under applicable law.

(6)

Issuance or denial of authorization by President

(A)

In general

Subject to paragraph (7), if any agency has denied a Federal authorization required for a transmission facility within an energy right-of-way corridor on Federal land designated pursuant to section 368 of the Energy Policy Act of 2005 (42 U.S.C. 15926), or has failed to act by the deadline established by the Secretary of the Interior pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application.

(B)

Options

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

(i)

issue the necessary authorization with any appropriate conditions; or

(ii)

deny the application.

(C)

Deadline

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

(D)

Federal requirements

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

(i)

the National Forest Management Act of 1976 (16 U.S.C. 1600 et seq.);

(ii)

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

(iii)

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

(iv)

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

(v)

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

(7)

Issuance or denial of authorization by President

Paragraph (6) shall not apply to—

(A)

a unit of the National Park System;

(B)

a unit of the National Wildlife Refuge System;

(C)

a component of the National Wild and Scenic Rivers System;

(D)

a component of the National Trails System;

(E)

a component of the National Wilderness Preservation System;

(F)

a National Monument;

(G)

any part of the National Landscape Conservation System;

(H)

a National Preserve;

(I)

a National Scenic Area; or

(J)

a National Recreation Area.

(8)

Energy right-of-way corridors on Federal land

(A)

In general

In carrying out this subsection, the Secretary with jurisdiction over the land shall, to the maximum extent practicable, use the energy right-of-way corridors designated in accordance with section 368 of the Energy Policy Act of 2005 (42 U.S.C. 15926).

(B)

Additional corridors

If the Secretary is unable to use an energy right-of-way corridor described in subparagraph (A), the Secretary shall establish an additional corridor in accordance with section 368(c) of the Energy Policy Act of 2005 (42 U.S.C. 15926(c)).

(9)

Duration

(A)

In general

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

(i)

for a duration, as determined by the Secretary with jurisdiction over the land, commensurate with the anticipated use of the facility;

(ii)

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

(iii)

consistent with the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and other applicable law.

(B)

Renewal

On the expiration of the authorization (including an authorization issued before the date of enactment of the American Clean Energy Leadership Act of 2009), the authorization shall be reviewed for renewal—

(i)

taking fully into account reliance on the electricity infrastructure; and

(ii)

recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land.

(10)

Consultation

In exercising the responsibilities under this section, the Secretary of the Interior and the Commission shall consult regularly with—

(A)

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

(B)

Transmission Organizations approved by the Commission; and

(C)

transmission owners and users and other interested parties.

(11)

Implementation

(A)

Regulations

Not later than 18 months after the date of enactment of the American Clean Energy Leadership Act of 2009, the Secretary of the Interior and the Commission shall issue any regulations necessary to carry out this subsection.

(B)

Federal staff and resources

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

(g)

Evaluation and recommendations

The Commission shall—

(1)

periodically evaluate whether high-priority national transmission projects are being constructed in accordance with the Interconnection-wide transmission grid plan for high-priority national transmission projects for both the Western and Eastern Interconnection areas;

(2)

take any necessary actions, pursuant to applicable law, to address any identified obstacles to investment, siting, and construction of high-priority national transmission projects identified as needed under an Interconnection-wide plan; and

(3)

not later than 2 years after the date of enactment of the American Clean Energy Leadership Act of 2009, submit to Congress recommendations for any further actions or authority needed to ensure the effective and timely development of—

(A)

high-priority national transmission projects; and

(B)

transmission projects to access regional and offshore renewable energy generation.

(h)

Report of Secretary

Not later than 2 years after the date of enactment of the American Clean Energy Leadership Act of 2009, the Secretary shall submit to Congress recommendations for any further actions or authority needed to ensure the effective and timely development of—

(1)

demand response;

(2)

energy storage;

(3)

distributed generation;

(4)

energy efficiency; and

(5)

other areas necessary to carry out the policy established under subsection (a).

(i)

Cost allocation

(1)

In general

Not later than 270 days after the date of enactment of the American Clean Energy Leadership Act of 2009, the Commission—

(A)

shall establish by rule an appropriate methodology for allocation of the costs of high-priority national transmission projects, subject to the requirement that any cost allocation methodology, and any rates affected by the cost allocation methodology, shall be just, reasonable, and not unduly discriminatory or preferential;

(B)

may permit allocation of costs for high-priority national transmission projects to load-serving entities within all or a part of a region, except that costs shall not be allocated to a region, or subregion, unless the costs are reasonably proportionate to measurable economic and reliability benefits;

(C)

may permit allocation of costs to generators of electricity connected by a high-priority national transmission project; and

(D)

shall provide for due deference to cost allocation proposals supported by broad agreement among affected States.

(2)

Mechanism for collection of costs

The Commission shall adopt such rules and require inclusion of such provisions in transmission tariffs as are required to provide for—

(A)

the efficient collection of allocated costs for development and operation of high-priority national transmission projects; and

(B)

the distribution of those revenues to owners of the high-priority national transmission projects.

(j)

Relationship to other laws

(1)

In general

Except as specifically provided in this section, nothing in this section affects any requirement of an environmental or historic preservation law of the United States, including—

(A)

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

(B)

the Wilderness Act (16 U.S.C. 1131 et seq.); or

(C)

the National Historic Preservation Act (16 U.S.C. 470 et seq.).

(2)

State law

Nothing in this section precludes any person from constructing or modifying any transmission facility in accordance with State law.

(k)

Transmission rights to support new generation development

Subject to section 217(b)(4), it is the policy of the United States that long-term transmission rights of firmness and duration sufficient to support generation investment (or equivalent tradable or financial long-term transmission rights), shall be available under appropriate terms and conditions to load-serving entities (as defined in section 217(a)(2)) for long-term power supply arrangements for new generation facilities using renewable energy.

(l)

Resource assessments

(1)

In general

The Secretary shall conduct nationwide assessments to identify areas with a significant potential for the development of location-constrained resources.

(2)

Formats

The resource assessments shall be made available to the public in multiple formats, including in a Geographical Information System compatible format.

(3)

Timing

The Secretary shall—

(A)

make the initial resource assessment required under this subsection not later than 180 days after the date of enactment of the American Clean Energy Leadership Act of 2009; and

(B)

refine the resource assessment on a regular basis that is consistent with regional planning cycles.

(4)

Technical assistance

The Secretary shall provide technical assistance to regional planning authorities, on request, to assist the authorities in carrying out this subsection.

(m)

Congestion studies

Not later than 1 year after the date of enactment of the American Clean Energy Leadership Act of 2009 and every 3 years thereafter, the Secretary, in consultation with affected States and Indian tribes, shall—

(1)

conduct a study of electric transmission congestion; and

(2)

submit to the appropriate committees of Congress a report that describes the results of the study.

(n)

Applicability

(1)

In general

Except as otherwise provided in this subsection, the authority of the Commission under this section to approve transmission plans and to allocate costs incurred pursuant to the plans applies to all transmission providers, generators, and users, owners, and operators of the power system within the Eastern and Western Interconnections of the United States, including entities described in section 201(f).

(2)

Regional planning entities

The Commission shall have authority over regional planning entities to the extent necessary to carry out this section.

(3)

Project developers

Nothing in this section precludes the development, subject to applicable regulatory requirements, of transmission projects that are not included in plans developed under this section.

(4)

Commission-approved planning processes

Nothing in this section affects the approval, siting, or cost allocation for a project that is authorized pursuant to planning processes that have been approved by the Commission.

(5)

Exclusions

This section does not apply in the State of Alaska or Hawaii or to the Electric Reliability Council of Texas, unless the State or the Council voluntarily elects to participate in a cost allocation plan under this section.

.

C

Federal renewable electricity standard

131.

Sense of Congress on renewable energy and energy efficiency

It is the sense of Congress that the Federal Government should continue to support the use and expansion of renewable energy and energy efficiency in—

(1)

the production and use of energy;

(2)

the reduction of greenhouse gas emissions; and

(3)

the reduction of dependence on foreign oil.

132.

Federal renewable electricity standard

(a)

In general

Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end the following:

610.

Federal renewable electricity standard

(a)

Definitions

In this section:

(1)

Affiliate

The term affiliate when used with respect 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 issued by the Secretary.

(2)

Base quantity of electricity

(A)

In general

The term base quantity of electricity means the total quantity of electricity sold by an electric utility to electric consumers in a calendar year.

(B)

Exclusions

The term base quantity of electricity does not include—

(i)

electricity generated by a hydroelectric facility (including a pumped storage facility but excluding qualified hydropower) owned by an electric utility or sold under contract or rate order to an electric utility to meet the needs of the retail customers of the utility;

(ii)

electricity generated through the incineration of municipal solid waste owned by an electric utility or sold under contract or rate order to an electric utility to meet the needs of the retail customers of the utility;

(iii)

the quantity of electricity generated by a fossil-fuel facility that is equal to the proportion of greenhouse gases produced by such a unit that are captured and geologically sequestered; or

(iv)
(I)

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

(II)

additional energy generated by an existing nuclear facility as a result of efficiency improvements or capacity additions made on or after the date of enactment of this section.

(3)

Biomass

The term biomass has the meaning given the term in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)).

(4)

Distributed generation facility

The term distributed generation facility means a facility at or near a customer site that provides electric energy to 1 or more customers for purposes other than resale other than to a utility through a net metering arrangement.

(5)

Geothermal energy

The term geothermal energy means energy derived from a geothermal deposit (within the meaning of section 613(e)(2) of the Internal Revenue Code of 1986).

(6)

Incremental cost of compliance

(A)

In general

The term incremental cost of compliance means—

(i)

the costs attributable to all retail sales of electricity incurred in a year by an electric utility to—

(I)

generate renewable energy eligible for Federal renewable energy credits;

(II)

acquire Federal renewable energy credits; or

(III)

make alternative compliance payments in order to comply with the requirements of subsection (b); less

(ii)
(I)

the costs the electric utility would have incurred to serve all of the retail customers of that electric utility in that year to generate or acquire additional electricity not eligible for renewable energy credits if the requirements of subsection (b) did not apply to the electric utility; and

(II)

the costs of compliance with any comparable State renewable requirement.

(B)

Cost of electricity

In calculating the incremental cost of compliance of an electric utility under this section, the Secretary shall take into account the reduction, if any, on the cost of electricity generated with fossil fuels associated with increased reliance on renewable electric energy generation.

(7)

Incremental geothermal production

(A)

In general

The term incremental geothermal production means, for any year, the excess of—

(i)

the total kilowatt hours of electricity produced from a facility (including a distributed generation facility) using geothermal energy; over

(ii)

the average number of kilowatt hours produced annually at the facility for 5 of the previous 7 calendar years before the date of enactment of this section after eliminating the highest and the lowest kilowatt hour production years in that 7-year period.

(B)

Special rule

A facility described in subparagraph (A) that was placed in service at least 7 years before the date of enactment of this section shall, commencing with the year in which that date of enactment occurs, reduce the amount calculated under subparagraph (A)(ii) each year, on a cumulative basis, by the average percentage decrease in the annual kilowatt hour production for the 7-year period described in subparagraph (A)(ii) with such cumulative sum, but not to exceed 30 percent.

(8)

Incremental hydropower

(A)

In general

The term incremental hydropower means additional energy generated as a result of efficiency improvements or capacity additions made on or after January 1, 1992.

(B)

Exclusion

The term incremental hydropower does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions.

(C)

Measurement and certification

Efficiency improvements and capacity additions referred to in subparagraph (A) shall be—

(i)

measured on the basis of the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility; and

(ii)

certified by the Secretary or the Federal Energy Regulatory Commission.

(9)

Indian land

The term Indian land has the meaning given the term in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501).

(10)

Qualified hydropower

(A)

In general

The term qualified hydropower means—

(i)

incremental hydropower;

(ii)

additions of capacity made on or after January 1, 2001, or the effective commencement date of an existing applicable State renewable electricity standard program at an existing nonhydroelectric dam, if—

(I)

the hydroelectric project installed on the nonhydroelectric dam—

(aa)

is licensed by the Federal Energy Regulatory Commission, or is exempt from licensing, and is in compliance with the terms and conditions of the license or exemption; and

(bb)

meets all other applicable environmental, licensing, and regulatory requirements, including applicable fish passage requirements;

(II)

the nonhydroelectric dam—

(aa)

was placed in service before the date of enactment of this section;

(bb)

was operated for flood control, navigation, or water supply purposes; and

(cc)

did not produce hydroelectric power as of the date of enactment of this section; and

(III)

the hydroelectric project 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 requirements imposed under applicable law that change the water surface elevation for the purpose of improving the environmental quality of the affected waterway, as certified by the Federal Energy Regulatory Commission; and

(iii)

in the case of the State of Alaska—

(I)

energy generated by a small hydroelectric facility that produces less than 50 megawatts;

(II)

energy from pumped storage; and

(III)

energy from a lake tap.

(B)

Standards

Nothing in this paragraph or the application of this paragraph shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act (16 U.S.C. 791a et seq.).

(11)

Qualified waste-to-energy

The term qualified waste-to-energy means energy from the combustion of post-recycled municipal solid waste, or from the gasification or pyrolization of such waste and the combustion of the resulting gas at the same facility, if the owner or operator of the facility generating electricity from the energy provides to the Commission, on an annual basis—

(A)

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

(B)

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

(C)

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 residents of the local government unit.

(12)

Renewable energy

The term renewable energy means electric energy generated at a facility (including a distributed generation facility) from—

(A)

solar, wind, or geothermal energy or ocean energy;

(B)

biomass;

(C)

landfill gas;

(D)

qualified hydropower;

(E)

marine and hydrokinetic renewable energy (as defined in section 632 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211));

(F)

incremental geothermal production;

(G)

coal-mined methane;

(H)

qualified waste-to-energy; or

(I)

another renewable energy source based on innovative technology, as determined by the Secretary through rulemaking.

(b)

Renewable energy and energy efficiency requirement

(1)

Requirement

(A)

In general

Subject to subparagraph (B), each electric utility that sells electricity to electric consumers for a purpose other than resale shall obtain a percentage of the base quantity of electricity the electric utility sells to electric consumers in any calendar year from renewable energy or energy efficiency.

(B)

Percentage

Except as provided in section 611, the percentage obtained in a calendar year under subparagraph (A) shall not be less than the amount specified in the following table:

Calendar year:Minimum annual percentage:
2011 through 20133.0
2014 through 20166.0
2017 through 20189.0
2019 through 202012.0
2021 through 203915.0
(2)

Means of compliance

An electric utility shall meet the requirements of paragraph (1) by—

(A)

submitting to the Secretary renewable energy credits issued under subsection (c);

(B)

submitting Federal energy efficiency credits issued under subsection (i), except that those credits may not be used to meet more than 26.67 percent of the requirements under paragraph (1) in any calendar year;

(C)

making alternative compliance payments to the Secretary at the rate of 2.1 cents per kilowatt hour (as adjusted for inflation under subsection (g)) if the electric utility does not elect to petition the Secretary to waive the requirements under subsection (d)(3)(C); or

(D)

a combination of activities described in subparagraphs (A), (B), and (C).

(3)

Phase-in

The Secretary shall prescribe, by regulation, a reasonable phase-in of the requirements of paragraph (1) as the requirements apply to an electric utility that becomes subject to this section on or after January 1, 2013.

(c)

Federal renewable energy and energy efficiency credit trading programs

(1)

In general

Not later than January 1, 2011, the Secretary shall establish a Federal renewable energy credit trading program, and a Federal energy efficiency credit trading program, under which electric utilities shall submit to the Secretary Federal renewable energy credits and Federal energy efficiency credits to certify the compliance of the electric utilities with subsection (b)(1).

(2)

Administration

As part of the program, the Secretary shall—

(A)

issue renewable energy credits to generators of electric energy from renewable energy, regardless of whether the energy is transmitted over the national interstate transmission system;

(B)

to the extent that renewable sources of electricity are used in combination with other sources of energy, issue credits only to the extent that the electricity generated is from renewable resources;

(C)

issue renewable energy credits to electric utilities associated with State renewable electricity standard compliance mechanisms pursuant to subsection (h);

(D)

issue energy efficiency credits pursuant to subsection (i);

(E)

subject to subparagraph (F), ensure that a kilowatt hour, including the associated renewable energy credit or energy efficiency credit, shall be used only once for purposes of compliance with this Act;

(F)

allow double credits for generation from facilities on Indian land, and triple credits for generation from small renewable distributed generators (meaning those no larger than 1 megawatt), except that no distributed renewable generation facilities on Indian land shall receive a greater number of credits than triple credits;

(G)

allow triple credits for generation of energy from algae;

(H)

ensure that, with respect to a purchaser that, as of the date of enactment of this section, has a purchase agreement from a renewable energy facility placed in service before that date, the credit associated with the generation of renewable energy under the contract is issued to the purchaser of the electric energy to the extent that the contract does not already provide for the allocation of the Federal credit; and

(I)

issue tradeable renewable energy credits for the useful electric and thermal output from a facility that produces the output from biomass, using a system under which—

(i)

in the case of efficiency that is less than 50 percent, 1 renewable energy credit is awarded;

(ii)

in the case of efficiency that is 50 percent or more but less than 70 percent, 1.1 renewable energy credits are awarded for the same unit output;

(iii)

in the case of efficiency that is 70 percent or more but less than 90 percent, 1.25 renewable energy credits are awarded for the same unit output; and

(iv)

in the case of efficiency that is 90 percent or more, 1.5 renewable energy credits are awarded for the same unit output.

(3)

Duration

A credit described in subparagraph (A), (B), (C), or (D) of paragraph (2) may only be used for compliance with this section during the 3-year period beginning on the date of issuance of the credit.

(4)

Transfers

An electric utility that holds credits in excess of the quantity of credits needed to comply with subsection (b) may transfer the credits to another electric utility in the same utility holding company system.

(5)

Delegation of market function

(A)

In general

The Secretary may delegate to—

(i)

an appropriate market-making entity the administration of a national renewable energy credit market and a national energy efficiency credit market for purposes of creating a transparent national market for the sale or trade of renewable energy credits and energy efficiency credits; and

(ii)

regional entities the tracking of dispatch of renewable generation.

(B)

Administration

Any delegation under subparagraph (A) shall ensure that the tracking and reporting of information concerning the dispatch of renewable generation is transparent, verifiable, and independent of any generation or load interests with obligations under this section. .

(d)

Enforcement

(1)

Civil penalties

Any electric utility that fails to meet the requirements of subsection (b) shall be subject to a civil penalty.

(2)

Amount of penalty

The amount of the civil penalty shall be equal to the product obtained by multiplying—

(A)

the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b); by

(B)

200 percent of the value of the alternative compliance payment, as adjusted for inflation under subsection (g).

(3)

Mitigation or waiver

(A)

Penalty

(i)

In general

The Secretary may mitigate or waive a civil penalty under this subsection if the electric utility is unable to comply with subsection (b) due to a reason outside of the reasonable control of the electric utility.

(ii)

Amount

The Secretary shall reduce the amount of any penalty determined under paragraph (2) by the amount paid by the electric utility to a State for failure to comply with the requirement of a State renewable energy program if the State requirement is greater than the applicable requirement of subsection (b).

(B)

Requirement

The Secretary may waive the requirements of subsection (b) for a period of up to 5 years with respect to an electric utility if the Secretary determines that the electric utility cannot meet the requirements due to a hurricane, tornado, fire, flood, earthquake, ice storm, or other natural disaster or act of God beyond the reasonable control of the utility.

(C)

Ratepayer protection

Effective beginning June 1, 2010, and not later than June 1 of each year thereafter, an electric utility may petition the Secretary to waive, for the following compliance year, all or part of the requirements of subsection (b) in order to limit the rate impact of the incremental cost of compliance of the electric utility to not more than 4 percent per retail customer in any year.

(D)

Variance

A State public utility commission or electric utility may submit an application to the Secretary that requests a variance from the requirements of subsection (b) for 1 or more calendar years (including suspension or reduction of the requirements) on the basis of transmission constraints preventing delivery of service.

(4)

Procedure for assessing penalty

The Secretary shall assess a civil penalty under this subsection in accordance with the procedures prescribed by section 333(d) of the Energy Policy and Conservation Act (42 U.S.C. 6303(d)).

(e)

Alternative compliance payments

(1)

In general

An electric utility may satisfy the requirements of subsection (b), in whole or in part, by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to the amount required under subsection (b) in accordance with such regulations as the Secretary may promulgate.

(2)

Payment to State funds

Payments made under this subsection shall be made directly to the State in which the electric utility is located, if the payments are deposited directly into a fund within the treasury of the State for use in accordance with paragraph (3).

(3)

Use of grants

The Governor of any State may expend amounts in a State renewable energy escrow account solely for purposes of—

(A)

increasing the quantity of electric energy produced from a renewable energy source in the State, including nuclear and advanced coal technologies for carbon capture and sequestration;

(B)

promoting the deployment and use of electric drive vehicles in the State, including the development of electric drive vehicles and batteries; and

(C)

offsetting the costs of carrying out this section paid by electric consumers in the State through—

(i)

direct grants to electric consumers; or

(ii)

energy efficiency investments.

(4)

Information and reports

As a condition of providing payments to a State under this subsection, the Secretary may require the Governor to keep such accounts or records, and furnish such information and reports, as the Secretary determines are necessary and appropriate for determining compliance with this subsection.

(f)

Exemptions

During any calendar year, this section shall not apply to an electric utility—

(1)

that sold less than 4,000,000 megawatt-hours of electric energy to electric consumers during the preceding calendar year, except that sales to an affiliate, lessee, or tenant of the electric utility shall not be treated as sales to electric consumers under this paragraph; or

(2)

in Hawaii.

(g)

Inflation adjustment

Not later than December 31 of each year beginning in 2008, the Secretary shall adjust for inflation the rate of the alternative compliance payment under subsection (b)(2)(C).

(h)

State programs

(1)

In general

Subject to paragraph (2), nothing in this section diminishes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting renewable energy or energy efficiency, or the regulation of electric utilities,.

(2)

Compliance

Except as provided in subsection (d)(3), no such law or regulation shall relieve any person of any requirement otherwise applicable under this section.

(3)

Coordination

The Secretary, in consultation with States having such renewable energy and energy efficiency programs, shall, to the maximum extent practicable, facilitate coordination between the Federal program and State programs.

(4)

Regulations

(A)

In general

The Secretary, in consultation with States, shall promulgate regulations to ensure that an electric utility that is subject to the requirements of this section and is subject to a State renewable energy standard receives renewable energy credits if—

(i)

the electric utility complies with the State standard by generating or purchasing renewable electric energy or renewable energy certificates or credits representing renewable electric energy; or

(ii)

the State imposes or allows other mechanisms for achieving the State standard, including the payment of taxes, fees, surcharges, or other financial obligations.

(B)

Amount of credits

The amount of credits received by an electric utility under this subsection shall equal—

(i)

in the case of subparagraph (A)(i), the quantity of renewable energy resulting from the generation or purchase by the electric utility of renewable energy; and

(ii)

in the case of subparagraph (A)(ii), the pro rata share of the electric utility, based on the contributions to the mechanism made by the electric utility or customers of the electric utility, in the State, of the quantity of renewable energy resulting from those mechanisms.

(C)

Prohibition on double counting

The regulations promulgated under this paragraph shall ensure that a kilowatt-hour associated with a renewable energy credit issued pursuant to this subsection shall not be used for compliance with this section more than once.

(i)

Energy efficiency credits

(1)

Definitions

In this subsection:

(A)

Customer facility savings

The term customer facility savings means a reduction in the consumption of end-use electricity at a facility of an end-use consumer of electricity served by an electric utility, as compared to—

(i)

consumption at the facility during a base year, taking into account reductions attributable to causes other than energy efficiency investments (such as economic downturns, reductions in customer base, favorable weather conditions, or other such causes); or

(ii)

in the case of new equipment (regardless of whether the new equipment replaces existing equipment at the end of the useful life of the existing equipment), consumption by similar equipment of average efficiency available for purchase at the time that new equipment is acquired.

(B)

Electricity savings

The term electricity savings means—

(i)

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

(ii)

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 (as defined by the Secretary by regulation); and

(iii)

the output of new combined heat and power systems, to the extent provided under paragraph (5).

(C)

Qualified electricity savings

The term qualified electricity savings means electricity saving that meet the measurement and verification requirements of paragraph (4).

(2)

Petition

On petition by the Governor of a State or, in the case of the power service area of the Tennessee Valley Authority, the Board of Directors of the Tennessee Valley Authority, the Secretary shall allow up to 26.67 percent of the requirements of an electric utility under subsection (b)(1) associated with the sales of electricity of the utility in the State to be met by submitting Federal energy efficiency credits issued pursuant to this subsection.

(3)

Issuance of energy efficiency credits

(A)

In general

The Secretary shall issue energy efficiency credits for qualified electricity savings achieved in States described in paragraph (2) in accordance with this subsection.

(B)

Qualified electricity savings

Subject to subparagraph (C), in accordance with regulations promulgated by the Secretary, the Secretary shall issue credits for—

(i)

qualified electricity savings achieved by an electric utility on or after the date of enactment of this section; and

(ii)

qualified electricity savings achieved by other entities (including State agencies) on or after the date of enactment of this section if—

(I)

the measures used to achieve the qualified electricity savings were installed or placed in operation by the entity seeking the credit; and

(II)

an electric utility eligible to receive efficiency did not pay a substantial portion of the cost of achieving the qualified electricity savings (unless the utility has waived any entitlement to the credit).

(C)

Standards

No credits shall be issued for electricity savings achieved as a result of compliance with a national, State, or local building, equipment, or appliance efficiency standard.

(4)

Measurement and verification of electricity savings

Not later than January 2010, the Secretary shall promulgate regulations regarding the measurement and verification of electricity savings under this subsection, including regulations covering—

(A)

procedures and standards for defining and measuring electricity savings that will be eligible to receive credits under paragraph (3), which shall—

(i)

specify the types of energy efficiency and energy conservation that will be eligible for the credits;

(ii)

require that energy consumption 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;

(iii)

account for the useful life of electricity savings measures;

(iv)

include specified electricity savings values for specific, commonly-used efficiency measures; and

(v)

exclude electricity savings that—

(I)

are not properly attributable to measures carried out by the entity seeking the credit;

(II)

have already been credited under this section to another entity; or

(III)

do not result from actions not intended to achieve electricity savings;

(B)

procedures and standards for third-party verification of reported electricity savings; and

(C)

such requirements for information, reports, and access to facilities as may be necessary to carry out this subsection.

(5)

Combined heat and power

Under regulations promulgated by the Secretary, the increment of electricity output of a new combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs), shall be considered electricity savings under this subsection.

(j)

Biomass harvesting and sustainability

The provisions of this section relating to biomass shall be administered in accordance with section 203(e) of the Energy Policy Act of 2005 (42 U.S.C. 15852(e)).

(k)

Loans for projects to comply with Federal renewable electricity standard

(1)

Purposes

The purposes of this subsection are—

(A)

to reduce the cost incurred by electric utilities in complying with the requirements of this section; and

(B)

to minimize the impact of the requirements on electricity rates for consumers.

(2)

Loans

The Secretary shall make loans available to electric utilities to carry out qualified projects approved by the Secretary to comply with the requirements of this section.

(3)

Qualified projects

(A)

In general

A loan may be made under this subsection for a project—

(i)

to construct a renewable energy generation facility;

(ii)

to install an energy efficiency or electricity demand reduction technology; or

(iii)

to carry out any other project approved by the Secretary that the Secretary determines is consistent with the purposes of this subsection.

(B)

Disapproval

The Secretary may disapprove an application for a loan for a project under this subsection if the Secretary determines that—

(i)

the revenues generated under the project are unlikely to be sufficient to cover the repayment obligations of the proposed loan; or

(ii)

the project is not otherwise consistent with the purposes of this subsection.

(4)

Terms

A loan made by the Secretary to an electric utility under this subsection shall—

(A)

be for a term of not to exceed 30 years; and

(B)

bear an annual interest rate that is 50 basis points more than the Federal funds rate established by the Board of Governors of the Federal Reserve System.

(5)

Priority

Notwithstanding any other provision of law, the debt to the Federal Government under a loan made to an electric utility under this subsection shall have priority in any case in which the electric utility files for bankruptcy protection under title 11, United States Code.

(6)

Authorization of appropriations

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

(l)

Reconsideration

(1)

Review

(A)

In general

Not later than January 15, 2017, and every 5 years thereafter, the Secretary shall review and make recommendations to Congress on the program established under this section.

(B)

Analysis

The review shall analyze whether—

(i)

the program established under this section has contributed to an economically harmful increase in electricity rates in regions of the United States;

(ii)

the program has resulted in net economic benefits for the United States; and

(iii)

new technologies and clean, renewable energy sources will advance the purposes of this section.

(2)

Recommendations

The Secretary shall submit to Congress recommendations on whether—

(A)

the percentage of energy efficiency credits eligible to be submitted under subsection (b)(1) should be increased or decreased;

(B)

the percentage of renewable electricity required under subsection (b)(1) should be increased or decreased; and

(C)

the definition of renewable energy should be expanded to reflect advances in technology or previously unavailable sources of clean or renewable energy.

(3)

Report

Not later than January 15, 2017, the Secretary shall submit to Congress a report that describes any recommendations of the Secretary on changes to the program established under this section.

(m)

Regulations

Not later than 1 year after the date of enactment of this section, the Secretary shall promulgate regulations implementing this section.

(n)

Termination of authority

This section and the authority provided by this section terminate on December 31, 2039.

.

(b)

Table of contents amendment

The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is amended by adding at the end of the items relating to title VI the following:

Sec. 610. Federal renewable electricity standard.

.

133.

Federal purchase requirement amendments

Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended—

(1)

by striking subsection (b) and inserting the following:

(b)

Definitions

In this section:

(1)

Biomass

The term biomass means the following types of nonhazardous organic materials:

(A)

Residues and byproducts from milled logs.

(B)

Wood, paper products that are not commonly recyclable, and vegetation (including trees and trimmings, yard waste, pallets, railroad ties, crates, and solid-wood manufacturing and construction debris), if diverted from or separated from other waste out of a municipal waste stream.

(C)

Hazard trees, trimmings, and brush that are necessary to remove in order to maintain a utility right-of-way or a public road (not including any unpaved road within Federal land).

(D)

Trees, trimmings, and brush harvested from the immediate vicinity of any building, campground, or other structure in wildfire-prone areas to reduce the risk to the structure or campground or to human life from wildfires.

(E)

Invasive species (as defined in Executive Order 13112 (42 U.S.C. 4321 note; relating to invasive species)) removed to control or eradicate the invasive species.

(F)

Animal waste and animal byproducts (including biogas and any solid produced by micro-organisms).

(G)

Food waste.

(H)

Algae.

(I)

Slash, brush, trees, and other vegetation that is harvested from non-Federal land or Indian land—

(i)

that is, at the time of harvest—

(I)

naturally regenerated forest land;

(II)

forest land that was planted for the purpose of restoring land to a naturally regenerated forest; or

(III)

if harvested in quantities and through practices that maintain or contribute toward the restoration of the species, ecological systems, and ecological communities for which the conservation forest land was identified, conservation forest land; or

(ii)

that is—

(I)

at the time of harvest, planted forest land; and

(II)

on the date of enactment of this section, cropland (including fallow land), pastureland, or planted forest land.

(J)

Crops, crop byproducts, and crop residues from non-Federal land or Indian land that is—

(i)

at the time of harvest, not forest land; and

(ii)

on the date of enactment of this section—

(I)

cropland (including fallow land and not including planted forest land); or

(II)

pastureland.

(K)

If harvested from Federal land in accordance with applicable law and land management plans and in quantities and through practices that maintain or contribute toward the restoration of ecological sustainability—

(i)

slash; and

(ii)

brush and trees that are byproducts of ecological restoration, disease or insect infestation control, or hazardous fuels reduction treatments and—

(I)

are from stands that—

(aa)

were killed by an insect or disease epidemic or a natural disaster; and

(bb)

do not meet the utilization standards for sawtimber; or

(II)

do not exceed the minimum size standards for sawtimber.

(2)

Conservation forest land

(A)

In general

The term conservation forest land means forest land that contains a species, or includes all or part of an ecological system or community, that is at risk of extinction or elimination within a State or globally.

(B)

Identification

Conservation forest land shall be identified based on the best available science and data by any of—

(i)

the State in which the land is located, unless the land is under the jurisdiction of an Indian tribe;

(ii)

an Indian tribe with jurisdiction over the land; or

(iii)

in consultation with the State in which the land is located or the Indian tribe with jurisdiction over the land—

(I)

the Secretary of Agriculture; or

(II)

the Secretary of the Interior.

(C)

Exceptions

A tract of conservation forest land may not be removed from conservation forest land status under this section as a result of land management practices on the tract that—

(i)

occurred on or after the date of enactment of this subparagraph; and

(ii)

contributed toward the elimination of the species, or all or part of an ecological system or ecological community, for which the land was identified as conservation forest land.

(3)

Federal land

(A)

In general

The term Federal land means—

(i)

National Forest System land; and

(ii)

public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)).

(B)

Exclusions

(i)

In general

The term Federal land does not include—

(I)

any area designated by Congress to be administered for conservation purposes; or

(II)

a National Monument proclaimed by the President.

(ii)

Old growth or late successional forest stands

The term Federal land does not include an old growth or late successional forest stand unless biomass from the stand does not exceed the minimum size standards for sawtimber and is a byproduct of an ecological restoration treatment that fully maintains, or contributes toward the restoration of, the structure and composition of an old growth forest stand in accordance with the old growth conditions characteristic of the forest type and retains the large trees contributing to old growth structure.

(4)

Indian land

The term Indian land has the meaning given the term Indian country in section 1151 of title 18, United States Code.

(5)

Indian tribe

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

(6)

Non-Federal land

The term non-Federal land means land that is not owned by the Federal Government.

(7)

Renewable energy

The term renewable energy means energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project.

(8)

Secretary concerned

The term Secretary concerned means—

(A)

the Secretary of Agriculture, with regard to—

(i)

National Forest System land; and

(ii)

except as provided by subparagraph (B), non-Federal land; and

(B)

the Secretary of the Interior, with regard to—

(i)

public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and

(ii)

Indian land.

; and

(2)

by adding at the end the following:

(e)

Biomass harvesting and sustainability

(1)

In general

The Secretaries concerned shall administer the provisions covered by subsection (b)(1) relating to the harvesting of biomass from Federal land and forest land.

(2)

Inter-agency biomass sustainability study

(A)

In general

The Secretary, in consultation with the Secretary of Agriculture, the Secretary of the Interior, and the Administrator of the Environmental Protection Agency, shall conduct a study that assesses the impacts of biomass harvesting for energy production on—

(i)

landscape-level water quality, soil productivity, wildlife habitat, and biodiversity; and

(ii)

conservation forest land.

(B)

Timing

The Secretary shall—

(i)

complete the study required under this paragraph not later than 5 years after the date of enactment of this subsection; and

(ii)

update the study not later than every 5 years thereafter.

(C)

Basis

The Secretary shall base the study on the best available data and science.

(D)

Recommendations

The Secretary shall include in the study such recommendations as are appropriate to reduce the impacts described in subparagraph (A).

(E)

Public participation and availability

In carrying out this paragraph, the Secretary shall—

(i)

consult with States, Indian tribes, and other interested stakeholders;

(ii)

make available, and seek public comment on, a draft version of the study results; and

(iii)

make the final study results available to the public.

.

D

Energy and water integration

141.

Energy water nexus study

(a)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of the Interior and the Administrator of the Environmental Protection Agency, shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct an in-depth analysis of the impact of energy development and production on the water resources of the United States.

(b)

Scope of study

(1)

In general

The study described in subsection (a) shall be comprised of each assessment described in paragraphs (2) through (4).

(2)

Transportation sector assessment

(A)

In general

The study shall include a lifecycle assessment of the quantity of water withdrawn and consumed in the production of transportation fuels, or electricity used as a fuel source, to evaluate the ratio that—

(i)

the quantity of water withdrawn and consumed in the production of transportation fuels (measured in gallons), or electricity (measured in kilowatt-hours); bears to

(ii)

the total distance (measured in miles) that may be traveled as a result of the consumption of transportation fuels, or electricity.

(B)

Scope of assessment

(i)

In general

The assessment shall include, as applicable—

(I)

the exploration for, and extraction or growing of, energy feedstock;

(II)

the processing of energy feedstock into transportation fuel;

(III)

the generation, transportation, and storage of electricity for transportation; and

(IV)

the conduct of an analysis of the efficiency with which the transportation fuel is consumed.

(ii)

Fuels

The assessment shall contain an analysis of transportation fuel sources, including—

(I)

domestically produced crude oil (including products derived from domestically produced crude oil);

(II)

imported crude oil (including products derived from imported crude oil);

(III)

domestically produced natural gas (including liquid fuels derived from natural gas);

(IV)

imported natural gas (including liquid fuels derived from natural gas);

(V)

oil shale;

(VI)

tar sands;

(VII)

domestically produced corn-based ethanol;

(VIII)

imported corn-based ethanol;

(IX)

advanced biofuels (including cellulosic- and algae-based biofuels);

(X)

coal to liquids (including aviation fuel, diesel, and gasoline products);

(XI)

electricity consumed in—

(aa)

fully electric drive vehicles; and

(bb)

plug-in hybrid vehicles;

(XII)

hydrogen; and

(XIII)

any reasonably foreseeable combination of any transportation fuel source described in subclauses (I) through (XII).

(3)

Electricity sector assessment

(A)

In general

The study shall include a lifecycle assessment of the quantity of water withdrawn and consumed in the production of electricity to evaluate the ratio that—

(i)

the quantity of water used and consumed in the production of electricity (measured in gallons); bears to

(ii)

the quantity of electricity that is produced (measured in kilowatt-hours).

(B)

Scope of assessment

The assessment shall include, as applicable—

(i)

the exploration for, or extraction or growing of, energy feedstock;

(ii)

the processing of energy feedstock for electricity production; and

(iii)

the production of electricity.

(C)

Generation types

The assessment shall contain an evaluation and analysis of electricity generation facilities that are constructed in accordance with different plant designs (including different cooling technologies such as water, air, and hybrid systems, and technologies designed to minimize carbon dioxide releases) based on the fuel used by the facility, including—

(i)

coal;

(ii)

natural gas;

(iii)

oil;

(iv)

nuclear energy;

(v)

solar energy;

(vi)

wind energy;

(vii)

geothermal energy;

(viii)

biomass;

(ix)

the beneficial use of waste heat; and

(x)

any reasonably foreseeable combination of any fuel described in clauses (i) through (ix).

(4)

Assessment of additional impacts

In addition to the impacts associated with the direct use and consumption of water resources in the transportation and electricity sectors described in paragraphs (2) and (3), the study shall contain an identification and analysis of any unique water impact associated with a specific fuel source, including an impact resulting from—

(A)

any extraction or mining practice;

(B)

the transportation of feedstocks from the point of extraction to the point of processing;

(C)

the transportation of fuel and power from the point of processing to the point of consumption; and

(D)

the location of a specific fuel source that is limited to 1 or more specific geographical regions.

(c)

Report to Secretary

Not later than 18 months after the date of enactment of this Act, the National Academy of Sciences shall submit to the Secretary a report that contains a summary of the results of the study conducted under this section.

(d)

Availability of results of study

On the date on which the National Academy of Sciences completes the study under this section, the National Academy of Sciences shall make available to the public the results of the study.

(e)

Authorization of appropriations

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

142.

Power plant water and energy efficiency

(a)

In general

To protect water supplies and promote the efficient use of water in the electricity production sector, the Secretary, in consultation with the Secretary of the Interior and the Administrator of the Environmental Protection Agency, shall conduct a study to identify alternative technologies and related strategies to optimize water and energy efficiency in the production of electricity by each type of generation.

(b)

Generation types

The study shall include an evaluation of different types of generation facilities, including—

(1)

coal facilities, under which the evaluation shall account for—

(A)

different types of coal and associated generating technologies; and

(B)

the use of technologies designed to minimize and sequester carbon dioxide releases;

(2)

oil and natural gas facilities, under which the evaluation shall account for the use of technologies designed to minimize and sequester carbon dioxide releases;

(3)

hydropower, including turbine upgrades, incremental hydropower, in-stream hydropower, and pump-storage projects;

(4)

thermal solar facilities; and

(5)

nuclear facilities.

(c)

Report to Congress

Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that contains a description of the results of the study conducted under this section (including an assessment of any region-specific factor, such as water availability and energy reliability, that should be considered in evaluating the results).

(d)

Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section, to remain available until expended.

143.

Reclamation water conservation and energy savings study

(a)

Definitions

In this section:

(1)

Major Reclamation project

The term major Reclamation project means a multipurpose project authorized by the Federal Government and carried out by the Bureau of Reclamation.

(2)

Secretary

The term Secretary means the Secretary of the Interior, acting through the Commissioner of Reclamation.

(b)

Study

(1)

In general

In accordance with paragraph (2), to promote the efficient use of energy in water distribution systems, the Secretary shall conduct a study to evaluate the quantities of energy used in water storage and delivery operations in major Reclamation projects.

(2)

Elements

In conducting the study, the Secretary shall—

(A)

with respect to each major Reclamation project—

(i)

assess and estimate the annual energy consumption associated with the major Reclamation project; and

(ii)

identify—

(I)

each major Reclamation project that consumes the greatest quantity of energy; and

(II)

the aspect of the operation of each major Reclamation project described in subclause (I) that is the most energy intensive (including water storage and releases, water delivery, and administrative operations); and

(B)

identify opportunities to significantly reduce current energy consumption and costs with respect to each major Reclamation project described in subparagraph (A), including, as applicable, through—

(i)

reduced groundwater pumping;

(ii)

improved reservoir operations;

(iii)

infrastructure rehabilitation;

(iv)

water reuse; and

(v)

the integration of renewable energy generation with project operations.

(c)

Report to Congress

Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that contains a description of the results of the study conducted under this section.

(d)

Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section, to remain available until expended.

144.

Brackish groundwater national desalination research facility

(a)

Definitions

In this section:

(1)

Facility

The term facility means the Brackish Groundwater National Desalination Research Facility, located in Otero County, New Mexico.

(2)

Secretary

The term Secretary means the Secretary of the Interior.

(b)

Duty of Secretary

The Secretary shall operate, manage, and maintain the facility to carry out research, development, and demonstration activities to develop technologies and methods that promote brackish groundwater desalination as a viable method to increase water supply in a cost-effective manner.

(c)

Objectives; activities

(1)

Objectives

The Secretary shall operate and manage the facility as a state-of-the-art desalination research center—

(A)

to develop new water and energy technologies with widespread applicability; and

(B)

to create new supplies of usable water for municipal, agricultural, industrial, or environmental purposes.

(2)

Activities

In operating, managing, and maintaining the facility under subsection (b), the Secretary shall carry out—

(A)

as a priority, the development of renewable energy technologies for integration with desalination technologies—

(i)

to reduce the capital and operational costs of desalination;

(ii)

to minimize the environmental impacts of desalination; and

(iii)

to increase public acceptance of desalination as a viable water supply process;

(B)

research regarding various desalination processes, including improvements in reverse and forward osmosis technologies;

(C)

the development of innovative methods and technologies to reduce the volume and cost of desalination concentrated wastes (including the disposal of desalination concentrated wastes) in an environmentally sound manner;

(D)

an outreach program to create partnerships with States, academic institutions, private entities, and other appropriate organizations to conduct research, development, and demonstration activities, including the establishment of rental and other charges to provide revenue to help offset the costs of operating and maintaining the facility; and

(E)

an outreach program to educate the public on—

(i)

desalination and renewable energy technologies; and

(ii)

the benefits of using water in an efficient manner.

(d)

Authority of Secretary

The Secretary may enter into contracts or other agreements with, or make grants to, appropriate entities to manage, operate, or otherwise carry out this section, including an agreement with a local or regional academic institution or a consortium of institutions to manage research activities at the facility.

(e)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section, to remain available until expended.

145.

Enhanced information on water-related energy consumption

Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at the end the following:

(n)

Water-related energy consumption

(1)

In general

Not less than once during each 3-year period, to aid in the understanding and reduction of the quantity of energy used in association with the use of water, the Administrator shall conduct an assessment under which the Administrator shall collect information on energy use in various sectors of the economy that are associated with the procurement, treatment, or delivery of water.

(2)

Required sectors

An assessment described in paragraph (1) shall contain an analysis of water-related energy use for all relevant sectors of the economy, including water used for—

(A)

agricultural purposes;

(B)

municipal purposes;

(C)

industrial purposes; and

(D)

domestic purposes.

(3)

Effect

Nothing in this subsection affects the authority of the Administrator to collect data under section 52 of the Federal Energy Administration Act of 1974 (15 U.S.C. 790a).

.

146.

Energy-Water Research and Development Roadmap

(a)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary shall develop a document to be known as the Energy-Water Research and Development Roadmap to define the future research, development, demonstration, and commercialization efforts that are required to address emerging water-related challenges to future, cost-effective, reliable, and sustainable energy generation and production.

(b)

Report

Not later than 120 days after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report describing the document described in subsection (a), including recommendations for any future action with respect to the document.

147.

Energy-water clean technology grant program

(a)

Definitions

In this section:

(1)

Eligible entity

The term eligible entity means—

(A)

an eligible unit of local government;

(B)

an Indian tribe; and

(C)

a water or wastewater agency of a State or local government.

(2)

Eligible unit of local government

The term eligible unit of local government has the meaning given the term in section 541 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17151).

(3)

Indian tribe

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

(b)

Grant program

In accordance with subsection (c), the Secretary may carry out a competitive grant program under which the Secretary may provide grants to eligible entities to demonstrate the deployment of technologies that reduce the consumption of, or conserve, energy supplies through energy savings and water conservation activities in commercial, residential, and mixed-use development projects.

(c)

Requirements

(1)

Provision of assistance

In carrying out the program under subsection (b), the Secretary shall provide assistance to eligible entities that carry out projects that—

(A)

have the potential to be replicated in other locations;

(B)

are of sufficient size to demonstrate deployment of the project at scale; and

(C)

are likely to accelerate and expand investment in cost-effective technologies that demonstrate sustained reductions in energy consumption or conservation of energy supplies, including the deployment of renewable energy and water reuse technologies.

(2)

Prioritization

In selecting eligible entities under paragraph (1), the Secretary shall give priority to each eligible entity that carries out a project that has the potential to create sustained energy reductions that are greater than 50 percent for the project development, as compared to similar project developments that do not include the technology used by the project that is the subject of the demonstration.

(3)

Cost-sharing

Each demonstration activity carried out under a project under this program shall be subject to each cost-sharing requirement described in section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

(4)

Public-private partnerships

The Secretary shall provide a grant under this section only to an eligible entity that uses a public-private partnership to design and carry-out the project of the eligible entity.

(5)

Limitation on funds

Funds provided through a grant made by the Secretary under this section shall not be used by the recipient eligible entity for any operation or maintenance cost of the eligible entity.

(6)

Report

The Secretary shall require each eligible entity that receives a grant from the Secretary under this section to submit to the Secretary on a date not later than 1 year after the date on which the eligible entity completes the project of the eligible entity a report that contains a description of—

(A)

the estimated reductions in water use achieved by the project of the entity;

(B)

the reductions in energy consumption achieved by the project of the entity;

(C)

the comprehensive environmental benefits achieved by the project of the entity; and

(D)

the manner by which each reduction or benefit described in subparagraphs (A) through (C) compare to the original estimates of the eligible entity.

(d)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $100,000,000 for each of fiscal years 2010 through 2015, to remain available until expended.

148.

Rural water utilities energy and water efficiency program

(a)

Duty of Secretary

As soon as practicable after the date of enactment of this Act, the Secretary shall establish and carry out a program similar to, and consistent with, the national rural water and wastewater circuit rider program established under section 306(a)(22) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(22)) (including the authority to make grants)—

(1)

to provide on-site technical assistance to rural drinking water and wastewater utilities (including utilities serving an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b))); and

(2)

to improve energy efficiency, identify and develop alternative and renewable energy supplies, and conserve water in the operation of rural drinking water and wastewater utilities.

(b)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $7,000,000 for each of fiscal years 2010 through 2015.

149.

Comprehensive water use and energy savings study

(a)

In general

As soon as practicable after the date of enactment of this Act, in consultation with other Federal agencies and appropriate entities, and incorporating available governmental and nongovernmental data as appropriate, the Secretary shall conduct a comprehensive study to determine the interrelated nature of water and energy use (including energy consumption in water-related processes and the manner by which to reduce water-related energy consumption) to promote the efficient use of water and energy.

(b)

Required components

(1)

In general

In conducting the study under subsection (a), the Secretary shall include each component described in paragraphs (2) through (5).

(2)

Industrial water

In accordance with paragraph (1), the Secretary shall—

(A)

assess the annual industrial water use of the United States through a comparison, as the Secretary determines to be appropriate, of the differences in usage among—

(i)

various regions of the United States;

(ii)

industry types and processes; and

(iii)

the use of in-plant waste treatment facilities; and

(B)

identify opportunities to reduce significantly industrial energy consumption and associated costs through the use of—

(i)

water management strategies;

(ii)

water conservation using technologies in existence as of the date of enactment of this Act; and

(iii)

reused water, particularly with respect to industrial energy applications.

(3)

Peak demand

In accordance with paragraph (1), the Secretary shall identify options to reduce energy use by water treatment and delivery systems during peak electric demand periods, including through—

(A)

the use of increased water storage facilities;

(B)

the aggregation of water system utility accounts;

(C)

the installation of supervisory control and data acquisition systems; and

(D)

improvements made to primary and secondary water and wastewater treatment.

(4)

Nonpotable water sources

In accordance with paragraph (1), the Secretary shall identify and assess—

(A)

the applications and uses for nonfreshwater sources of water supply in industrial, commercial, and residential applications; and

(B)

the potential energy conservation that may result from the use of nonfreshwater supplies, including—

(i)

recycled and reclaimed water;

(ii)

produced water; and

(iii)

other nontraditional water sources.

(5)

Embedded energy

In accordance with paragraph (1), to facilitate an understanding of the potential energy savings associated with water conservation and efficiency, the Secretary shall assess and estimate the quantity and type of energy consumed in the procurement, transport, and treatment of water supplies and wastewater that serve industrial, commercial, and residential uses, including variations relating to differences in geography and types of supply and wastewater processes.

(c)

Report

Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that contains a description of—

(1)

the results of the study conducted by the Secretary under this section; and

(2)

the means by which to incorporate, and the benefits of incorporating, the results of the study into related reports prepared by the Secretary.

E

Vehicle technology deployment

151.

Transportation roadmap study

(a)

In general

The Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy shall—

(1)

conduct a comprehensive analysis of energy use within the light-duty vehicle transportation sector; and

(2)

use the analysis to conduct an integrated study of the technology options for alternative fuels, including electricity, natural gas, hydrogen, and advanced technologies (including battery, hybrid and fuel cell electric, advanced internal combustion, and lean burn diesel technologies), that could reduce petroleum consumption and greenhouse gas emissions.

(b)

Components

The study shall—

(1)

review the status of technologies and assess the potential of the technologies to meet goals to reduce petroleum consumption and greenhouse gas emissions, including—

(A)

potential future fuels and pathways to commercial deployment;

(B)

infrastructure needs for future fuels and other barriers to market penetration;

(C)

potential timing of market adoption and opportunities to increase the pace of market adoption;

(D)

a comparison of the potential reductions of petroleum consumption and greenhouse gas emissions for different technological approaches; and

(E)

improvements in and priorities for Federal research and development program activities to accelerate the development of the most promising technologies;

(2)

consider issues relating to vehicle duty cycles, regional distinctions, and technology development timelines;

(3)

build on and integrate applicable research conducted in recent years, including by the Academy;

(4)

evaluate technical options and assess the extent to which the United States can employ the options to reduce oil intensity by 80 percent by calendar year 2050 and reduce carbon dioxide emissions at a rate that is consistent with national goals; and

(5)

recommend policies to help facilitate the United States meeting national goals.

(c)

Report

Not later than 21 months after the date on which funds are first made available to carry out this section, and every 5 years thereafter, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report (or updated report) on the results of the study conducted under subsection (a), including any recommendations.

(d)

Authorization of appropriations

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

152.

Vehicle technology and recharging infrastructure

Section 131 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011) is amended by adding at the end the following:

(e)

Market assessment and recharging infrastructure study

(1)

Definitions

In this subsection:

(A)

Local government

(i)

In general

The term local government has the meaning given the term in section 3371 of title 5, United States Code.

(ii)

Inclusions

The term local government includes entities described in sections 7 and 8 of the Alaska Native Claims Settlement Act (43 U.S.C. 1606, 1607).

(B)

Range extension infrastructure

The term range extension infrastructure includes equipment, products, or services for recharging plug-in electric vehicles that—

(i)

are available to retail consumers of electric drive vehicles on a nonexclusive basis, including payment interoperability with other systems; and

(ii)

provide for extending driving range through battery exchange or rapid recharging.

(C)

State

The term State has the meaning given the term in section 3371 of title 5, United States Code.

(2)

Study

The Secretary, in consultation with the Administrator, and the Secretary of Transportation, shall carry out a program to analyze and assess—

(A)

the number and distribution of recharging facilities, including range extension infrastructure, that will be required for drivers of plug-in electric drive vehicles and neighborhood electric vehicles to reliably recharge those electric drive vehicles to meet the average needs of the drivers;

(B)

minimum technical standards for public recharging facilities necessary for widespread deployment;

(C)

the technical and infrastructure investments that electric utilities and electricity providers will be required to make to support widespread deployment of recharging infrastructure, including an estimate of the investments;

(D)

existing electric drive transportation technologies and the state of markets for the purchase of those technologies;

(E)

methods of removing market barriers for existing and emerging applications of electric drive transportation technologies;

(F)

the potential value to the electric grid of using the energy stored in on-board storage systems to improve the efficiency and reliability of the grid generation system; and

(G)

the implications of the introduction of plug-in electric drive vehicles and other types of electric transportation on the production of electricity from renewable resources.

(3)

Components

In conducting the study, the Secretary shall analyze and make recommendations on—

(A)

the variety and density of recharging infrastructure options necessary to power plug-in electric drive vehicles under diverse scenarios, including—

(i)

the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent-, 20 percent-, and 50 percent-penetration of plug-in electric vehicles on a city fleet basis;

(ii)

the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent-, 20 percent-, and 50 percent-penetration of plug-in electric vehicles on a regional fleet basis;

(iii)

the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent-, 20 percent-, and 50 percent-penetration of plug-in electric vehicles on a national fleet basis; and

(iv)

the potential impact of fast charging on market penetration rates for electric drive vehicles and the effects on electric utilities;

(B)

the effects on market penetration of reserved parking spots with access to recharging facilities;

(C)

model codes (including building codes) that need to be updated or otherwise modified to enable widespread deployment of recharging facilities; and

(D)

such other issues as the Secretary considers to be appropriate.

(4)

Report

Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the results of the study conducted under this subsection, including recommendations.

(f)

Financial support

(1)

In general

Not later than 18 months after the date of enactment of this subsection, the Secretary shall establish a program to support the deployment and integration of plug-in electric drive vehicles in multiple regions of the United States through the provision of financial support to State and local governments and other entities to assist in the installation of recharging facilities for electric drive vehicles.

(2)

Financial assistance

In carrying out the program, the Secretary may provide financial assistance described in paragraph (7) to promote the goals described in paragraph (4).

(3)

Regions

The Secretary shall select regions for financial assistance under this subsection based on applications for the assistance received under paragraph (7), taking into consideration the findings of the study conducted under subsection (e).

(4)

Goals

The goals of the program established under this subsection shall be—

(A)

to demonstrate the viability of a vehicle-based transportation system that reduces—

(i)

the use of petroleum as a fuel; and

(ii)

the emissions of greenhouse gases and other pollutants compared to a system based on conventional transportation fuels;

(B)

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

(C)

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

(D)

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

(E)

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

(5)

Use of funds

Subject to paragraph (6), the Secretary may provide financial assistance to any applicant that applies for, and receives the approval of the Secretary, under paragraph (7)—

(A)

to assist persons located in a region (including fleet owners) in the purchase of new plug-in electric drive vehicles by reducing the incremental cost of the vehicles above the cost of comparable conventionally fueled vehicles;

(B)

to support the use of plug-in electric drive vehicles by funding projects for the deployment of—

(i)

recharging infrastructure for plug-in electric drive vehicles (including range extension infrastructure);

(ii)

smart grid equipment and infrastructure to facilitate the charging and integration of plug-in electric drive vehicles; or

(iii)

the purchase of advanced batteries for use in plug-in electric drive vehicles; or

(C)

to carry out such other projects as the Secretary determines are appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas.

(6)

Cost share

The Secretary shall carry out the programs established under this subsection in accordance with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

(7)

Financial support

(A)

In general

The Secretary may—

(i)

provide grants to States and local governments for demonstration and commercial application of recharging infrastructure in accordance with paragraph (8) in accordance with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352); and

(ii)

consult with the Administrator of the Clean Energy Deployment Administration to further the goals of this section.

(B)

Applications

(i)

In general

An applicant that seeks to receive financial assistance under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines are necessary through rulemaking.

(ii)

Joint sponsorship

An application may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, car-sharing companies or organizations, or other persons or entities.

(C)

Requirements

The design elements and requirements of the program established under this subsection shall include—

(i)

an evaluation of the financial mechanisms that will most effectively promote the purposes of this section;

(ii)

criteria for evaluating applications submitted under this paragraph, taking into consideration the findings of the study conducted under subsection (e) (including the anticipated ability to promote deployment and market penetration of plug-in electric drive vehicles that are less dependent on petroleum as a fuel source);

(iii)

reporting requirements for entities that receive financial assistance under this subsection, including a comprehensive set of performance data that reflect the results of the program; and

(iv)

provisions that no proprietary information, trade secret, or other confidential information is required to be disclosed.

(8)

Grants to States and local governments for recharging infrastructure

(A)

In general

The Secretary shall establish a program under which the Secretary shall provide grants and other financial support to States and local governments to assist in the installation of recharging infrastructure for plug-in electric drive vehicles in areas under the jurisdiction of the States or local governments.

(B)

Eligibility

To be eligible to obtain a grant or other financial support under this subsection, a State or local government shall—

(i)

demonstrate to the Secretary that the applicant has taken into consideration the findings of the report submitted under subsection (e), unless the State or local government demonstrates to the Secretary that an alternative variety and density of recharging infrastructure options would better meet the purposes of this section; and

(ii)

agree not to charge a premium for use of a parking space used to recharge an electric drive vehicle other than a charge for electric energy.

(C)

Guidelines

The Secretary shall establish guidelines for carrying out this subsection that are consistent with the report submitted under subsection (e).

(9)

Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this subsection, to remain available until expended.

(g)

Information clearinghouse

As part of the program established under this section, the Secretary shall collect and make available to the public information regarding the cost, performance, and other technical data regarding the deployment and integration of plug-in hybrid electric drive vehicles.

(i)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this subsections (e) and (g).

.

153.

Electric drive transportation standardization

(a)

Report to congress

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the National Institute of Standards and Technology, the National Laboratories, utilities, vehicle manufacturers, battery manufacturers, industry trade associations, and such other entities as the Secretary determines to be appropriate, shall submit to Congress a report containing recommendations for establishing and adopting consensus or industry standards for electric drive transportation.

(2)

Contents

The report shall—

(A)

identify consensus standards that exist or are under development, such as—

(i)

standardized electronic protocols for use in communicating with the electrical power grid;

(ii)

safety and interoperability standards for the plug and socket for plug-in electric drive vehicles;

(iii)

battery-to-vehicle high voltage power connectors;

(iv)

battery-to-vehicle communications signal interface hardware and operational protocols;

(v)

safety interlock devices;

(vi)

battery safety; and

(vii)

other items identified by the Secretary as priority items;

(B)

identify priority standards for the widespread deployment of electric drive technology; and

(C)

recommend a collaborative process for public and private entities that will accelerate the development of priority standards, including—

(i)

making maximum use of existing relevant work; and

(ii)

identifying areas in which new research is required.

(b)

Authorization of appropriations

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

154.

Pilot program for plug-in electric drive vehicles for Federal fleet

Section 131 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011) (as amended by section 152) is amended by adding at the end the following:

(h)

Pilot program for plug-in electric drive vehicles

(1)

In general

The Secretary shall establish, as part of the Federal Energy Management Program, a pilot program under which the Secretary shall provide grants for—

(A)

the incremental cost of precommercial plug-in electric drive vehicles for purchase or lease in an amount not to exceed $10,000 per vehicle purchased or $1,500 per year per vehicle leased; and

(B)

recharging infrastructure at Federal facilities in conjunction with the vehicles.

(2)

Guidelines

Not later than 90 days after the date of enactment of this subsection, the Secretary shall issue guidelines for the pilot program established under this subsection.

(3)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this subsection for the period of fiscal years 2010 through 2015.

.

155.

Study of end-of-useful life options for motor vehicle batteries

(a)

In general

In combination with the research, demonstration, and deployment activities conducted under section 641(k) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(k)), the Secretary shall conduct a study on the end-of-useful life options for motor vehicle batteries, including batteries used in electric drive vehicles.

(b)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a), including recommendations for stationary storage applications and recyclability design specifications.

II

Enhanced energy efficiency

A

Manufacturing energy efficiency

201.

State partnership industrial energy efficiency revolving loan program

Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1) is amended—

(1)

in the section heading, by inserting and industry before the period at the end;

(2)

by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

(3)

by inserting after subsection (g) the following:

(h)

State partnership industrial energy efficiency revolving loan program

(1)

In general

The Secretary shall carry out a program under which the Secretary shall provide grants to eligible lenders to pay the Federal share of creating a revolving loan program under which loans are provided to commercial and industrial manufacturers to implement commercially available technologies or processes that significantly—

(A)

reduce systems energy intensity, including the use of energy intensive feedstocks; and

(B)

improve the industrial competitiveness of the United States.

(2)

Eligible lenders

To be eligible to receive cost-matched Federal funds under this subsection, a lender shall—

(A)

be a community and economic development lender that the Secretary certifies meets the requirements of this subsection;

(B)

lead a partnership that includes participation by, at a minimum—

(i)

a State government agency; and

(ii)

a private financial institution or other provider of loan capital;

(C)

submit an application to the Secretary, and receive the approval of the Secretary, for cost-matched Federal funds to carry out a loan program described in paragraph (1); and

(D)

ensure that non-Federal funds are provided to match, on at least a dollar-for-dollar basis, the amount of Federal funds that are provided to carry out a revolving loan program described in paragraph (1).

(3)

Award

The amount of cost-matched Federal funds provided to an eligible lender shall not exceed $100,000,000 for any fiscal year.

(4)

Recapture of awards

(A)

In general

An eligible lender that receives an award under paragraph (1) shall be required to repay to the Secretary an amount of cost-match Federal funds, as determined by the Secretary under subparagraph (B), if the eligible lender is unable or unwilling to operate a program described in this subsection for a period of not less than 10 years beginning on the date on which the eligible lender first receives funds made available through the award.

(B)

Determination by Secretary

The Secretary shall determine the amount of cost-match Federal funds that an eligible lender shall be required to repay to the Secretary under subparagraph (A) based on the consideration by the Secretary of—

(i)

the amount of non-Federal funds matched by the eligible lender;

(ii)

the amount of loan losses incurred by the revolving loan program described in paragraph (1); and

(iii)

any other appropriate factor, as determined by the Secretary.

(C)

Use of recaptured cost-match Federal funds

The Secretary may distribute to eligible lenders under this subsection each amount received by the Secretary under this paragraph.

(5)

Eligible projects

A program for which cost-matched Federal funds are provided under this subsection shall be designed to accelerate the implementation of industrial and commercial applications of technologies or processes that—

(A)

improve energy efficiency;

(B)

enhance the industrial competitiveness of the United States; and

(C)

achieve such other goals as the Secretary determines to be appropriate.

(6)

Evaluation

The Secretary shall evaluate applications for cost-matched Federal funds under this subsection on the basis of—

(A)

the description of the program to be carried out with the cost-matched Federal funds;

(B)

the commitment to provide non-Federal funds in accordance with paragraph (2)(D);

(C)

program sustainability over a 10-year period;

(D)

the capability of the applicant;

(E)

the quantity of energy savings or energy feedstock minimization;

(F)

the advancement of the goal under this Act of 25-percent energy avoidance;

(G)

the ability to fund energy efficient projects not later than 120 days after the date of the grant award; and

(H)

such other factors as the Secretary determines appropriate.

(7)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $500,000,000 for each of fiscal years 2010 through 2012.

.

202.

Coordination of research and development of energy efficient technologies for industry

(a)

In general

As part of the research and development activities of the Industrial Technologies Program of the Department of Energy, the Secretary shall establish, as appropriate, collaborative research and development partnerships with other programs within the Office of Energy Efficiency and Renewable Energy, including the Building Technologies Program, the Office of Electricity Delivery and Energy Reliability, and programs of the Office of Science—

(1)

to leverage the research and development expertise of those programs to promote early stage energy efficiency technology development; and

(2)

to apply the knowledge and expertise of the Industrial Technologies Program to help achieve the program goals of the other programs.

(b)

Reports

Not later than 2 years after the date of enactment of this Act and biennially thereafter, the Secretary shall submit to Congress a report that describes actions taken to carry out subsection (a) and the results of those actions.

203.

Energy efficient technologies assessment

(a)

In general

Not later than 60 days after the date of enactment of this Act, the Secretary shall commence an assessment of commercially available, cost competitive energy efficiency technologies that are not widely implemented within the United States for the energy intensive industries of—

(1)

steel;

(2)

aluminum;

(3)

forest and paper products;

(4)

food processing;

(5)

metal casting;

(6)

glass;

(7)

chemicals;

(8)

petroleum refining;

(9)

cement;

(10)

information and communication technologies; and

(11)

other industries that (as determined by the Secretary)—

(A)

use large quantities of energy;

(B)

emit large quantities of greenhouse gases; or

(C)

use a rapidly increasing quantity of energy.

(b)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall publish a report, based on the assessment conducted under subsection (a), that contains—

(1)

a detailed inventory describing the cost, energy, and greenhouse gas emission savings of each technology described in subsection (a);

(2)

for each technology, the total cost, energy, and greenhouse gas emissions savings if the technology is implemented throughout the industry of the United States;

(3)

for each industry, an assessment of total possible cost, energy, and greenhouse gas emissions savings possible if state-of-the art, cost-competitive, commercial energy efficiency technologies were adopted; and

(4)

for each industry, a comparison to the European Union, Japan, and other appropriate countries of energy efficiency technology adoption rates, as determined by the Secretary.

204.

Future of Industry program

(a)

In general

Section 452(c)(2) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(c)(2)) is amended by striking the section heading and inserting the following: Future of Industry program.

(b)

Industry-specific road maps

Section 452(c)(2) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(c)(2)) is amended—

(1)

in subparagraph (E), by striking and at the end;

(2)

by redesignating subparagraph (F) as subparagraph (G); and

(3)

by inserting after subparagraph (E) the following:

(F)

research to establish (through the Industrial Technologies Program and in collaboration with energy-intensive industries) a road map process under which—

(i)

industry-specific studies are conducted to determine the intensity of energy use, greenhouse gas emissions, and waste and operating costs, by process and subprocess;

(ii)

near-, mid-, and long-term targets of opportunity are established for synergistic improvements in efficiency, sustainability, and resilience; and

(iii)

public/private actionable plans are created to achieve roadmap goals; and

.

(c)

Industrial research and assessment centers

(1)

In general

Section 452(e) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)) is amended—

(A)

by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and indenting appropriately;

(B)

by striking The Secretary and inserting the following:

(1)

In general

The Secretary

;

(C)

in subparagraph (A) (as redesignated by subparagraph (A)), by inserting before the semicolon at the end the following: , including assessments of sustainable manufacturing goals and the implementation of information technology advancements for supply chain analysis, logistics, industrial and manufacturing processes, and other purposes; and

(D)

by adding at the end the following:

(2)

Centers of Excellence

(A)

In general

The Secretary shall establish a Center of Excellence at up to 10 of the highest performing industrial research and assessment centers, as determined by the Secretary.

(B)

Duties

A Center of Excellence shall coordinate with and advise the industrial research and assessment centers located in the region of the Center of Excellence.

(C)

Funding

Subject to the availability of appropriations, of the funds made available under subsection (f), the Secretary shall use to support each Center of Excellence not less than $500,000 for fiscal year 2010 and each fiscal year thereafter, as determined by the Secretary.

(3)

Expansion of centers

The Secretary shall provide funding to establish additional industrial research and assessment centers at institutions of higher education that do not have industrial research and assessment centers established under paragraph (1), taking into account the size of, and potential energy efficiency savings for, the manufacturing base within the region of the proposed center.

(4)

Coordination

(A)

In general

To increase the value and capabilities of the industrial research and assessment centers, the centers shall—

(i)

coordinate with Manufacturing Extension Partnership Centers of the National Institute of Science and Technology;

(ii)

coordinate with the Building Technologies Program of the Department of Energy to provide building assessment services to manufacturers;

(iii)

increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories for national industrial and manufacturing needs;

(iv)

identify opportunities for reducing greenhouse gas emissions; and

(v)

promote sustainable manufacturing practices for small- and medium-sized manufacturers.

(5)

Outreach

The Secretary shall provide funding for—

(A)

outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information, technologies, and services available; and

(B)

a full-time equivalent employee at each center of excellence whose primary mission shall be to coordinate and leverage the efforts of the center with—

(i)

Federal and State efforts;

(ii)

the efforts of utilities; and

(iii)

the efforts of other centers in the region of the center of excellence.

(6)

Workforce training

(A)

In general

The Secretary shall pay the Federal share of associated internship programs under which students work with industries and manufactures to implement the recommendations of industrial research and assessment centers.

(B)

Federal share

The Federal share of the cost of carrying out internship programs described in subparagraph (A) shall be 50 percent.

(C)

Funding

Subject to the availability of appropriations, of the funds made available under subsection (f), the Secretary shall use to carry out this paragraph not less than $5,000,000 for fiscal year 2010 and each fiscal year thereafter.

(7)

Small business loans

The Administrator of the Small Business Administration shall, to the maximum practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (15 U.S.C. 631 et seq.) to implement recommendations of industrial research and assessment centers established under paragraph (1).

.

(d)

Future of industry program

Section 452(f) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(f)) is amended—

(1)

in paragraph (1)—

(A)

in subparagraph (C), by striking $196,000,000 and inserting $216,000,000;

(B)

in subparagraph (D), by striking $202,000,000 and inserting $232,000,000; and

(C)

in subparagraph (E), by striking $208,000,000 and inserting $248,000,000; and

(2)

by adding at the end the following:

(4)

Industrial research and assessment centers

Of the amounts made available under paragraph (1), the Secretary shall use to provide funding to industrial research and assessment centers under subsection (e) not less than—

(A)

$20,000,000 for fiscal year 2010;

(B)

$30,000,000 for fiscal year 2011; and

(C)

$40,000,000 for fiscal year 2012 and each fiscal year thereafter.

.

205.

Sustainable manufacturing initiative

(a)

In general

Part E of title III of the Energy Policy and Conservation Act (42 U.S.C. 6341) is amended by adding at the end the following:

376.

Sustainable manufacturing initiative

(a)

In general

As part of the Industrial Technologies Program of the Department of Energy, the Secretary shall carry out a sustainable manufacturing initiative under which the Secretary, on the request of a manufacturer, shall conduct onsite technical assessments to identify opportunities for—

(1)

maximizing the energy efficiency of systems;

(2)

preventing pollution and minimizing waste;

(3)

reducing the use of water in manufacturing processes;

(4)

conserving natural resources; and

(5)

achieving such other goals as the Secretary determines to be appropriate.

(b)

Coordination

The Secretary shall carry out the initiative in coordination with appropriate agencies, including the National Institute of Standards and Technology.

(c)

Research and development program for sustainable manufacturing and industrial technologies and processes

As part of the Industrial Technologies Program of the Department of Energy, the Secretary shall carry out a joint industry-government partnership program to conduct research and development of new sustainable manufacturing and industrial technologies and processes that maximize the energy efficiency of systems, reduce pollution, and conserve natural resources.

(d)

Authorization of appropriations

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

.

(b)

Table of contents

The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part E of title III the following:

Sec. 376. Sustainable manufacturing initiative.

.

206.

Innovation in industry grants

Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is amended by adding at the end the following:

(g)

Innovation in industry grants

(1)

In general

As part of the program under this section, the Secretary shall carry out a program to pay the Federal share of competitively awarding grants to State-industry partnerships in accordance with this subsection to develop, demonstrate, and commercialize new technologies or processes for industries that significantly—

(A)

reduce energy use and energy intensive feedstocks;

(B)

reduce pollution and greenhouse gas emissions;

(C)

reduce industrial waste; and

(D)

improve domestic industrial cost competitiveness.

(2)

Administration

(A)

Applications

A State-industry partnership seeking a grant under this subsection shall submit to the Secretary an application for a grant to carry out a project to demonstrate an innovative energy efficiency technology or process described in paragraph (1).

(B)

Cost sharing

To be eligible to receive a grant under this subsection, a State-industry partnership shall agree to match, on at least a dollar-for-dollar basis, the amount of Federal funds that are provided to carry out the project.

(C)

Grant

The Secretary shall provide to a State-industry partnership selected under this subsection a 1-time grant of not more than $500,000 to initiate the project.

(3)

Eligible projects

A project for which a grant is received under this subsection shall be designed to demonstrate successful—

(A)

industrial applications of energy efficient technologies or processes that reduce costs to industry and prevent pollution and greenhouse gas releases; or

(B)

energy efficiency improvements in material inputs, processes, or waste streams to enhance the industrial competitiveness of the United States.

(4)

Evaluation

The Secretary shall evaluate applications for grants under this subsection on the basis of—

(A)

the description of the concept;

(B)

cost-efficiency;

(C)

the capability of the applicant;

(D)

the quantity of energy savings;

(E)

the commercialization or marketing plan; and

(F)

such other factors as the Secretary determines to be appropriate.

.

207.

Study of advanced energy technology manufacturing capabilities in the United States

(a)

In general

Not later than 60 days after the date of enactment of this Act, the Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study of the development of advanced manufacturing capabilities for various energy technologies, including—

(1)

an assessment of the manufacturing supply chains of established and emerging industries;

(2)

an analysis of—

(A)

the manner in which supply chains have changed over the 25-year period ending on the date of enactment of this Act;

(B)

current trends in supply chains; and

(C)

the energy intensity of each part of the supply chain and opportunities for improvement;

(3)

for each technology or manufacturing sector, an analysis of which sections of the supply chain are critical for the United States to retain or develop to be competitive in the manufacturing of the technology;

(4)

an assessment of which emerging energy technologies the United States should focus on to create or enhance manufacturing capabilities; and

(5)

recommendations on leveraging the expertise of energy efficiency and renewable energy user facilities so that best materials and manufacturing practices are designed and implemented.

(b)

Report

Not later than 2 years after the date on which the Secretary enters into the agreement with the Academy described in subsection (a), the Academy shall submit to the Committee on Energy and Natural Resources of the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Secretary a report describing the results of the study required under this section, including any findings and recommendations.

208.

Industrial Technologies steering committee

The Secretary shall establish an advisory steering committee to provide recommendations to the Secretary on planning and implementation of the Industrial Technologies Program of the Department of Energy.

209.

Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this subtitle.

B

Improved efficiency in appliances and equipment

221.

Test procedure petition process

(a)

Consumer products other than automobiles

Section 323(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended—

(1)

in subparagraph (A)(i), by striking amend and inserting publish in the Federal Register amended; and

(2)

by adding at the end the following:

(B)

Petitions

(i)

In general

In the case of any covered product, any person may petition the Secretary to conduct a rulemaking—

(I)

to prescribe a test procedure for the covered product; or

(II)

to amend the test procedures applicable to the covered product to more accurately or fully comply with paragraph (3).

(ii)

Determination

The Secretary shall—

(I)

not later than 90 days after the date of receipt of the petition, publish the petition in the Federal Register; and

(II)

not later than 180 days after the date of receipt of the petition, grant or deny the petition.

(iii)

Basis

The Secretary shall grant a petition if the Secretary finds that the petition contains evidence that, assuming no other evidence was considered, provides an adequate basis for determining that an amended test method would more accurately or fully comply with paragraph (3).

(iv)

Effect on other requirements

The granting of a petition by the Secretary under this subparagraph shall create no presumption with respect to the determination of the Secretary that the proposed test procedure meets the requirements of paragraph (3).

(v)

Rulemaking

(I)

In general

Except as provided in subclause (II), not later than the end of the 18-month period beginning on the date of granting a petition, the Secretary shall publish an amended test method or a determination not to amend the test method.

(II)

Extension

The Secretary may extend the period described in subclause (I) for 1 additional year.

(III)

Direct final rule

The Secretary may adopt a consensus test procedure in accordance with the direct final rule procedure established under section 325(p)(4).

.

(b)

Certain industrial equipment

Section 343 of the Energy Policy and Conservation Act (42 U.S.C. 6314) is amended—

(1)

in subsection (a), by striking paragraph (1) and inserting the following:

(1)

Amendment and petition process

(A)

In general

At least once every 7 years, the Secretary shall review test procedures for all covered equipment and—

(i)

publish in the Federal Register amended test procedures with respect to any covered equipment, if the Secretary determines that amended test procedures would more accurately or fully comply with paragraphs (2) and (3); or

(ii)

publish notice in the Federal Register of any determination not to amend a test procedure.

(B)

Petitions

(i)

In general

In the case of any class or category of covered equipment, any person may petition the Secretary to conduct a rulemaking—

(I)

to prescribe a test procedure for the covered equipment; or

(II)

to amend the test procedures applicable to the covered equipment to more accurately or fully comply with paragraphs (2) and (3).

(ii)

Determination

The Secretary shall—

(I)

not later than 90 days after the date of receipt of the petition, publish the petition in the Federal Register; and

(II)

not later than 180 days after the date of receipt of the petition, grant or deny the petition.

(iii)

Basis

The Secretary shall grant a petition if the Secretary finds that the petition contains evidence that, assuming no other evidence was considered, provides an adequate basis for determining that an amended test method would more accurately promote energy or water use efficiency.

(iv)

Effect on other requirements

The granting of a petition by the Secretary under this paragraph shall create no presumption with respect to the determination of the Secretary that the proposed test procedure meets the requirements of paragraphs (2) and (3).

(v)

Rulemaking

(I)

In general

Except as provided in subclause (II), not later than the end of the 18-month period beginning on the date of granting a petition, the Secretary shall publish an amended test method or a determination not to amend the test method.

(II)

Extension

The Secretary may extend the period described in subclause (I) for 1 additional year.

(III)

Direct final rule

The Secretary may adopt a consensus test procedure in accordance with the direct final rule procedure established under section 325(p).

;

(2)

by striking subsection (c); and

(3)

by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.

222.

Energy Star program

(a)

Division of responsibilities

Section 324A(b) of the Energy Policy and Conservation Act (42 U.S.C. 6294a(b)) is amended—

(1)

by striking Responsibilities and inserting the following:

(1)

In general

Responsibilities

; and

(2)

by adding at the end the following:

(2)

Update

Not later than 180 days after the date of enactment of this paragraph, the Secretary and the Administrator shall update the agreements described in paragraph (1), including agreements on provisions that provide—

(A)

a clear delineation of the roles and responsibilities of each agency that is based on the resources and areas of expertise of each agency;

(B)

a formal process for high-level decisionmaking that allows each agency to make specific programmatic decisions based on the program approaches of each agency;

(C)

a facilitated annual planning meeting that establishes strategic priorities and goals for the coming year;

(D)

a prescribed course of action to work through differences and disagreements;

(E)

a facilitated biannual program review conducted by a third-party that—

(i)

incorporates an assessment of program progress, partner acceptance, the achievement of program goals, and future strategic planning; and

(ii)

is evaluated by the Council on Environmental Quality, which shall appraise the findings in the review and work with the agencies to resolve any negative findings; and

(F)

a sunset date for the new agreement and a timetable for establishing future agreements based on priorities at that time.

.

(b)

Duties

Section 324A(c) of the Energy Policy and Conservation Act (42 U.S.C. 6294a(c)) is amended—

(1)

in paragraph (6), by striking and after the semicolon at the end;

(2)

in paragraph (7), by striking the period at the end and inserting a semicolon; and

(3)

by adding at the end the following:

(8)
(A)

review each product category—

(i)

at least once every 3 years; or

(ii)

when market share for an Energy Star product category reaches 35 percent;

(B)

based on the review—

(i)

update and publish the Energy Star product criteria for the category; or

(ii)

publish a finding that no update is justified with the explanation for the finding;

(C)

require that—

(i)

industry consensus test methods established by the Department of Energy shall—

(I)

take into consideration test procedures or rating procedures developed by industry standards organizations; and

(II)

be used for all solid-state lighting products, including—

(aa)

integral luminaries;

(bb)

integral replacement lamps;

(cc)

light engines; and

(ii)

in accordance with the commercialization support provisions of section 912 of the Energy Policy Act of 2005 (42 U.S.C. 16192), the Department of Energy shall assume all responsibility for the implementation of an Energy Star program for solid-state lighting; and

(D)

during the initial review for each product category, establish an alternative market share to trigger subsequent reviews, based on product-specific technology and market attributes;

(9)

require a demonstration of compliance with the Energy Star criteria by qualified products, except that—

(A)

the demonstration shall be conducted in accordance with appropriate methods determined for each product type by the Secretary or the Administrator of the Environmental Protection Agency (as appropriate), including—

(i)

third-party verification;

(ii)

third-party certification;

(iii)

purchase and testing of products from the market; or

(iv)

other verified testing and compliance approaches; and

(B)

the Secretary or Administrator may exempt specific types of products from the requirements of this subparagraph if the Secretary or Administrator finds that—

(i)

the benefits to the Energy Star program of verifying product performance are substantially exceeded by the burdens; or

(ii)

there are no benefits to the Energy Star program; and

(10)

develop and publish standardized building energy audit methods.

.

(c)

Funding

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

(f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section—

(1)

to the Department of Energy $25,000,000 for each fiscal year; and

(2)

to the Environmental Protection Agency $100,000,000 for each fiscal year.

.

223.

Petition for amended standards

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

(1)

by redesignating paragraph (3) as paragraph (5); and

(2)

by inserting after paragraph (2) the following:

(3)

Notice of decision

Not later than 180 days after the date of receiving a petition, the Secretary shall publish in the Federal Register a notice of, and explanation for, the decision of the Secretary to grant or deny the petition.

(4)

New or amended standards

Not later than 3 years after the date of granting a petition for new or amended standards, the Secretary shall publish in the Federal Register—

(A)

a final rule that contains the new or amended standards; or

(B)

a determination that no new or amended standards are necessary.

.

224.

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

(1)

In general

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

(A)

by redesignating paragraph (20) as paragraph (21); and

(B)

by inserting after paragraph (19) the following:

(20)

Portable light fixtures.

.

(2)

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 test procedure LM–79, Approved Method for Electrical and Photometric Testing of Solid-State Lighting Devices and an IES-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—

(1)

by redesignating subsection (ii) as subsection (kk); and

(2)

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)

which of 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 subsection 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.

.

225.

GU–24 base lamps

(a)

Definitions

Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as amended by section 224(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 section 224(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.

.

226.

Standards for certain incandescent reflector lamps and reflector lamps

Section 325(i) of the Energy Policy and Conservation Act (42 U.S.C. 6295(i)) is amended by adding at the end the following:

(9)

Certain incandescent reflector lamps

(A)

In general

Not later than July 1, 2011, the Secretary shall publish a final rule establishing standards for incandescent reflector lamp types described in paragraph (1)(C).

(B)

Effective date

The standards described in subparagraph (A) shall take effect on July 1, 2013.

(C)

Standards

In conducting a rulemaking for incandescent reflector lamps under this paragraph after the date of enactment of this paragraph, the Secretary shall consider the standards for all incandescent reflector lamps, including lamp types described in paragraph (1)(C).

(10)

Reflector lamps

(A)

In general

Not later than January 1, 2015, the Secretary shall publish a final rule establishing and amending standards for reflector lamps, including incandescent reflector lamps.

(B)

Administration

In conducting the rulemaking for reflector lamps under this paragraph, the Secretary shall consider—

(i)

incandescent and nonincandescent technologies; and

(ii)

a new metric, other than lumens per watt, that is based on the photometric distribution of those lamps.

(C)

Effective date

The standards described in subparagraph (A) shall take effect not earlier than the date that is 3 years after the date of publication of the final rule, as determined by the Secretary.

.

227.

Standards for commercial furnaces

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

(11)

Warm air furnaces 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 shall—

(i)

have a minimum combustion 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; and

(iv)

have power venting or a flue damper.

(B)

Oil-fired units shall have—

(i)

a minimum thermal efficiency of 81 percent;

(ii)

jacket losses not exceeding 0.75 percent of the input rating; and

(iii)

power venting or a flue damper.

.

228.

Motor efficiency rebate program

(a)

In general

Part C of title III of the Energy Policy and Conservation Act (42 U.S.C. 6311 et seq.) is amended by adding at the end the following:

347.

Motor efficiency rebate program

(a)

Establishment

By not later than January 1, 2010, in accordance with subsection (b), the Secretary shall establish a program to provide rebates for expenditures made by entities—

(1)

for the purchase and installation of a new electric motor that has a nominal full load efficiency that is not less than the nominal full load efficiency as defined in—

(A)

table 12–12 of NEMA Standards Publication MG 1–2006 for random wound motors rated 600 volts or lower; or

(B)

table 12–13 of NEMA Standards Publication MG 1–2006 for form wound motors rated 5000 volts or lower; and

(2)

to replace an installed motor of the entity the specifications of which are established by the Secretary by a date that is not later than 90 days after the date of enactment of this section.

(b)

Requirements

(1)

Application

To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including—

(A)

demonstrated evidence that the entity purchased an electric motor described in subsection (a)(1) to replace an installed motor described in subsection (a)(2);

(B)

demonstrated evidence that the entity—

(i)

removed the installed motor of the entity from service; and

(ii)

properly disposed the installed motor of the entity; and

(C)

the physical nameplate of the installed motor of the entity.

(2)

Authorized amount of rebate

The Secretary may provide to an entity that meets each requirement under paragraph (1) a rebate the amount of which shall be equal to the product obtained by multiplying—

(A)

the nameplate horsepower of the electric motor purchased by the entity in accordance with subsection (a)(1); and

(B)

$25.00.

(3)

Payments to distributors of qualifying electric motors

To assist in the payment for expenses relating to processing and motor core disposal costs, the Secretary shall provide to the distributor of an electric motor described in subsection (a)(1), the purchaser of which received a rebate under this section, an amount equal to the product obtained by multiplying—

(A)

the nameplate horsepower of the electric motor; and

(B)

$5.00.

(c)

Authorization of appropriations

There are authorized to be appropriated to carry out this section, to remain available until expended—

(1)

$80,000,000 for fiscal year 2010;

(2)

$75,000,000 for fiscal year 2011;

(3)

$70,000,000 for fiscal year 2012;

(4)

$65,000,000 for fiscal year 2013; and

(5)

$60,000,000 for fiscal year 2014.

.

(b)

Table of contents

The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part C of title III the following:

Sec. 347. Motor efficiency rebate program.

.

229.

Study of compliance with energy standards for appliances

(a)

In general

The Secretary shall conduct a study of the degree of compliance with energy standards for appliances, including an investigation of compliance rates and options for improving compliance, including enforcement.

(b)

Report

Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report describing the results of the study, including any recommendations.

230.

Study of direct current electricity supply in certain buildings

(a)

In general

The Secretary shall conduct a study—

(1)

of the costs and benefits (including significant energy efficiency, power quality, and other power grid, safety, and environmental benefits) of requiring high-quality, direct current electricity supply in certain buildings; and

(2)

to determine, if the requirement described in paragraph (1) is imposed, what the policy and role of the Federal Government should be in realizing those benefits.

(b)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report describing the results of the study, including any recommendations.

231.

Motor market assessment and commercial awareness program

(a)

Findings

Congress finds that—

(1)

electric motor systems account for about half of the electricity used in the United States;

(2)

electric motor energy use is determined by both the efficiency of the motor and the system in which the motor operates;

(3)

Federal Government research on motor end use and efficiency opportunities is more than a decade old; and

(4)

the Census Bureau has discontinued collection of data on motor and generator importation, manufacture, shipment, and sales.

(b)

Definitions

In this section:

(1)

Department

The term Department means the Department of Energy.

(2)

Interested parties

The term interested parties includes—

(A)

trade associations;

(B)

motor manufacturers;

(C)

motor end users;

(D)

electric utilities; and

(E)

individuals and entities that conduct energy efficiency programs.

(3)

Secretary

The term Secretary means the Secretary of Energy, in consultation with interested parties.

(c)

Assessment

The Secretary shall conduct an assessment of electric motors and the electric motor market in the United States that shall—

(1)

include important subsectors of the industrial and commercial electric motor market (as determined by the Secretary), including—

(A)

the stock of motors and motor-driven equipment;

(B)

efficiency categories of the motor population; and

(C)

motor systems that use drives, servos, and other control technologies;

(2)

characterize and estimate the opportunities for improvement in the energy efficiency of motor systems by market segment, including opportunities for—

(A)

expanded use of drives, servos, and other control technologies;

(B)

expanded use of process control, pumps, compressors, fans or blowers, and material handling components; and

(C)

substitution of existing motor designs with existing and future advanced motor designs, including electronically commutated permanent magnet, interior permanent magnet, and switched reluctance motors; and

(3)

develop an updated profile of motor system purchase and maintenance practices, including surveying the number of companies that have motor purchase and repair specifications, by company size, number of employees, and sales.

(d)

Recommendations; update

Based on the assessment conducted under subsection (c), the Secretary shall—

(1)

develop—

(A)

recommendations to update the detailed motor profile on a periodic basis;

(B)

methods to estimate the energy savings and market penetration that is attributable to the Save Energy Now Program of the Department; and

(C)

recommendations for the Director of the Census Bureau on market surveys that should be undertaken in support of the motor system activities of the Department; and

(2)

prepare an update to the Motor Master+ program of the Department.

(e)

Program

Based on the assessment, recommendations, and update required under subsections (c) and (d), the Secretary shall establish a proactive, national program targeted at motor end-users and delivered in cooperation with interested parties to increase awareness of—

(1)

the energy and cost-saving opportunities in commercial and industrial facilities using higher efficiency electric motors;

(2)

improvements in motor system procurement and management procedures in the selection of higher efficiency electric motors and motor-system components, including drives, controls, and driven equipment; and

(3)

criteria for making decisions for new, replacement, or repair motor and motor system components.

232.

Study regarding Energy Superstar concept

Section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) is amended by inserting after subsection (d) the following:

(e)

Study regarding Energy Superstar concept

(1)

Study

(A)

In general

As soon as practicable after the date of enactment of this subsection, in accordance with subparagraph (B), the Secretary and the Administrator of the Environmental Protection Agency (referred to in this subsection as the heads of the Federal agencies concerned) shall carry out jointly a study to determine the feasibility and advisability of adding to the Energy Star program of the Environmental Protection Agency and the Department of Energy a component to be known as the Energy Superstar tier under which—

(i)

the tier would recognize the top-performing products and buildings (which would include the top approximately 5 percent of the market) that are determined to be products that are cost-effective to consumers; and

(ii)

at least a portion of the Energy Star product categories would be included under the tier.

(B)

Requirements

In carrying out the study under subparagraph (A), the heads of the Federal agencies concerned shall—

(i)

examine the costs and benefits, and advantages and disadvantages, of establishing the Energy Superstar tier;

(ii)

survey a sample of program participants (including builders, manufacturers, energy efficiency program operators, and other interested parties) to determine the opinions of the program participants regarding the potential usefulness of the Energy Superstar tier; and

(iii)

conduct an examination to determine whether the Energy Superstar tier will cause an undesirable dilution of the Energy Star brand.

(2)

Report

Not later than 1 year after the date of enactment of this subsection, the heads of the Federal agencies concerned shall jointly submit to the appropriate committees of Congress a report that contains each recommendation of the heads of the Federal agencies concerned regarding—

(A)

whether the Energy Superstar tier should be established; and

(B)

if the heads of the Federal agencies concerned recommend the establishment of the Energy Superstar tier under subparagraph (A), a proposed schedule and budget for the establishment and implementation of the Energy Superstar tier.

.

233.

Technical amendment

Section 343(a) of the Energy Policy and Conservation Act (42 U.S.C. 6314(a)) is amended by striking Air-Conditioning and Refrigeration Institute each place it appears in paragraphs (4)(A) and (7) and inserting Air-Conditioning, Heating, and Refrigeration Institute.

C

Building efficiency

I

Building codes

241.

Greater energy efficiency in building codes

(a)

In general

Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:

304.

Updating State building energy efficiency codes

(a)

Updating national model building energy codes

(1)

Targets

(A)

In general

The Secretary shall support updating the national model building energy codes and standards at least every 3 years to achieve overall energy savings, compared to the 2006 IECC for residential buildings and ASHRAE Standard 90.1–2004 for commercial buildings, of at least—

(i)

30 percent in editions of each model code or standard released during or after 2010; and

(ii)

50 percent in editions of each model code or standard released during or after 2016.

(B)

Specific years

(i)

In general

Targets for specific years shall be set by the Secretary at least 3 years in advance of each target year, coordinated with the IECC and ASHRAE Standard 90.1 cycles, at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective and on a path to achieving net-zero-energy buildings.

(ii)

Different target years

Subject to paragraph (2)(D), prior to 2013, the Secretary may set a different target year for 1 or both model codes described in subparagraph (A) if the Secretary determines that a 50 percent target cannot be met in 2016.

(C)

Technical assistance to model code-setting and standard development organizations

(i)

In general

The Secretary shall, on a timely basis, provide technical assistance to model code-setting and standard development organizations.

(ii)

Assistance

The assistance shall include technical assistance as requested by the organizations in—

(I)

evaluating code or standards proposals or revisions;

(II)

building energy analysis and design tools;

(III)

building demonstrations; and

(IV)

design assistance and training.

(D)

Amendment proposals

The Secretary shall submit code and standard amendment proposals, with supporting evidence, sufficient to enable the national model building energy codes and standards to meet the targets established under subparagraph (A).

(2)

Revision of building energy use standards

(A)

In general

If the provisions of the IECC or ASHRAE Standard 90.1 regarding building energy use are revised, the Secretary shall make a determination not later than 1 year after the date of the revision, on whether the revision will—

(i)

improve energy efficiency in buildings; and

(ii)

meet the targets under paragraph (1).

(B)

Codes or standards not meeting targets

(i)

In general

If the Secretary makes a determination under subparagraph (A)(ii) that a code or standard does not meet the targets established under paragraph (1), not later than 1 year after the date of the determination, the Secretary shall provide the model code or standard developer with proposed changes that would result in a model code that meets the targets.

(ii)

Incorporation of changes

On receipt of the proposed changes, the model code or standard developer shall have an additional 180 days to incorporate the proposed changes into the model code or standard.

(iii)

Establishment by Secretary

If the proposed changes are not incorporated into the model code or standard, the Secretary shall establish a modified code or standard that meets the established targets.

(iv)

Administration

Any code or standard modified under this subparagraph shall—

(I)

achieve the maximum level of energy savings that is technologically feasible and life-cycle cost-effective;

(II)

be based on the latest edition of the IECC or ASHRAE Standard 90.1, including any subsequent amendments, addenda, or additions, but may also consider other model codes or standards; and

(III)

serve as the baseline for the next determination under subparagraph (A)(i).

(C)

Codes or standards not updated for 3 years

(i)

In general

If a national model code or standard is not updated for more than 3 years, the Secretary shall, not later than 1 year after the date of the determination, establish a modified code or standard that meets the targets.

(ii)

Requirements

Any modified code or standard shall—

(I)

achieve the maximum level of energy savings that is technologically feasible and life-cycle cost-effective;

(II)

be based on the latest revision of the IECC or ASHRAE Standard 90.1, including any amendments or additions to the code or standard, but may also consider other model codes or standards; and

(III)

serve as the baseline for the next determination under subparagraph (A)(i).

(D)

Administration

The Secretary shall—

(i)

provide an opportunity for public comment on targets, determinations, and modified codes and standards under this subsection; and

(ii)

publish notice of targets, determinations, and modified codes and standards under this subsection in the Federal Register.

(b)

State certification of building energy code updates

(1)

Review and updating of codes by each State

(A)

In general

Not later than 2 years after the date of enactment of the American Clean Energy Leadership Act of 2009, each State shall certify to the Secretary whether or not the State has reviewed and updated the provisions of the residential and commercial building codes of the State regarding energy efficiency.

(B)

Demonstration

The certification shall include a demonstration that the code provisions of the State—

(i)

meet or exceed the 2009 IECC for residential buildings and the ASHRAE Standard 90.1–2007 for commercial buildings; or

(ii)

achieve equivalent or greater energy savings.

(2)

Review and updating of codes based on determination of Secretary

(A)

Determination of improvement of energy efficiency in buildings; modified codes or standards

(i)

In general

If the Secretary makes an affirmative determination under subsection (a)(2)(A)(i) or establishes a modified code or standard under subsection (a)(2)(B), each State shall, not later than 2 years after the date of the determination or establishment, certify whether or not the State has reviewed and updated the provisions of the building code of the State regarding energy efficiency.

(ii)

Demonstration

The certification shall include a demonstration that the code provisions of the State meet or exceed the revised code or standard, or achieve equivalent or greater energy savings.

(B)

No determination of improvement of energy efficiency in buildings

If the Secretary fails to make a determination under subsection (a)(2)(A)(i) by the date specified in subsection (a)(2), or makes a negative determination, each State shall not later than 2 years after the specified date or the date of the determination, certify whether or not the State has reviewed the revised code or standard, and updated the provisions of the building code of the State regarding energy efficiency to meet or exceed any provisions found to improve energy efficiency in buildings, or to achieve equivalent or greater energy savings in other ways.

(c)

State certification of compliance with building codes

(1)

Requirement

(A)

In general

Not later than 3 years after the date of a certification under subsection (b), each State shall certify whether or not the State has—

(i)

achieved compliance under paragraph (3) with the certified State building energy code or with the associated model code or standard; or

(ii)

made significant progress under paragraph (4) toward achieving compliance with the certified State building energy code or with the associated model code or standard.

(B)

Repeat certifications

If the State certifies progress toward achieving compliance, the State shall repeat the certification each year until the State certifies that the State has achieved compliance.

(2)

Measurement of compliance

A certification under paragraph (1) shall include documentation of the rate of compliance based on—

(A)

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

(B)

an alternative method that yields an accurate measure of compliance.

(3)

Achievement of compliance

(A)

In general

A State shall be considered to achieve compliance under paragraph (1) if—

(i)

at least 90 percent of new and renovated building space covered by the code in the preceding year substantially meets all the requirements of the code regarding energy efficiency, or achieves an equivalent energy savings level; or

(ii)

the estimated excess energy use of new and renovated buildings that did not meet the code in the preceding year, compared to a baseline of comparable buildings that meet the code, is not more than 5 percent of the estimated energy use of all new and renovated buildings covered by the code during the preceding year.

(B)

Renovated buildings

If the Secretary determines that the percentage targets under subparagraph (A) are not reasonably achievable for renovated residential or commercial buildings, the Secretary may reduce the targets for the renovated buildings to the highest achievable level.

(4)

Significant progress toward achievement of compliance

(A)

In general

A State shall be considered to have made significant progress toward achieving compliance for purposes of paragraph (1) if the State—

(i)

has developed and is implementing a plan for achieving compliance within 8 years, assuming continued adequate funding, including active training and enforcement programs;

(ii)

after 1 or more years of adequate funding, has demonstrated progress, in conformance with the plan described in clause (i), toward compliance;

(iii)

after 5 or more years of adequate funding, meets the requirements of paragraph (3) if 80 percent is substituted for 90 percent or 10 percent is substituted for 5 percent; and

(iv)

has not had more than 8 years of adequate funding.

(B)

Adequate funding

For purposes of this paragraph, funding shall be considered adequate if the Federal Government provides to the States at least $50,000,000 for a fiscal year in funding and support for development and implementation of State building energy codes, including for training and enforcement.

(C)

Technical assistance to States

The Secretary shall provide technical assistance to States to implement the requirements of this section, including procedures for States—

(i)

to demonstrate that the code provisions of the States achieve equivalent or greater energy savings than the national model codes and standards; and

(ii)

to improve and implement State residential and commercial building energy efficiency codes or to otherwise promote the design and construction of energy efficient buildings.

(D)

Voluntary advanced codes

(i)

In general

The Secretary shall support the development of voluntary advanced model codes and standards for residential and commercial buildings that achieve energy savings of at least 30 percent compared to the national model building codes and standards.

(ii)

Updates

The voluntary advanced model codes and standards shall be updated at least once every 3 years, for use in—

(I)

green building design;

(II)

voluntary and market transformation programs;

(III)

incentive criteria; and

(IV)

voluntary adoption by States.

(iii)

Preference

In carrying out this subparagraph, the Secretary shall give preference to voluntary advanced model codes and standards developed by the International Code Council and by ASHRAE.

(d)

Failure to meet deadlines

(1)

In general

A State that has not made a certification required under subsection (b) or (c) by the applicable deadline shall submit to the Secretary a report on—

(A)

the status of the State with respect to meeting the requirements and submitting the certification; and

(B)

a plan for meeting the requirements and submitting the certification.

(2)

Nonacceptance of certification

Any State for which the Secretary has not accepted a certification by a deadline under subsection (b) or (c) shall be considered out of compliance with this section.

(3)

Local government

In any State that is out of compliance with this section, a local government may be considered in compliance with this section by meeting the certification requirements under subsections (b) and (c).

(4)

Annual reports by Secretary

(A)

In general

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

(i)

the status of national model building energy codes and standards;

(ii)

the status of code adoption and compliance in the States; and

(iii)

implementation of this section.

(B)

Impacts

The report shall include estimates of impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings and resulting energy costs to individuals and businesses.

(e)

Availability of incentive funding

(1)

In general

(A)

Requirement

The Secretary shall provide incentive funding to States to implement the requirements of this section, and to improve and implement State residential and commercial building energy efficiency codes, including increasing and verifying compliance with the codes.

(B)

State actions

In determining whether, and in what amount, to provide incentive funding under this subsection, the Secretary shall consider the actions proposed by the State—

(i)

to implement the requirements of this section;

(ii)

to improve and implement residential and commercial building energy efficiency codes; and

(iii)

to promote building energy efficiency through the use of the codes.

(2)

Additional funding

Additional funding shall be provided under this subsection for implementation of a plan to achieve and document at least a 90 percent rate of compliance with residential and commercial building energy efficiency codes, based on energy performance—

(A)

to a State that has adopted and is implementing, on a Statewide basis—

(i)

a residential building energy efficiency code that meets or exceeds the requirements of the 2009 IECC, or any succeeding version of that code that has received an affirmative determination from the Secretary under subsection (a)(2)(A)(i); and

(ii)

a commercial building energy efficiency code that meets or exceeds the requirements of the ASHRAE Standard 90.1–2007, or any succeeding version of that standard that has received an affirmative determination from the Secretary under subsection (a)(2)(A)(i); or

(B)

in a State in which there is no Statewide energy code for either residential buildings or commercial buildings, or in which State codes fail to comply with subparagraph (A), to a local government that has adopted and is implementing residential and commercial building energy efficiency codes, as described in subparagraph (A).

(3)

Training

Of the amounts made available under this subsection, the State may use amounts required, but not to exceed $500,000 for a State, to train State and local building code officials to implement and enforce codes described in paragraph (2).

(4)

Authorization of appropriations

There are authorized to be appropriated to carry out this subsection—

(A)

$100,000,000 for each of fiscal years 2009 through 2013; and

(B)

such sums as are necessary for fiscal year 2014 and each fiscal year thereafter.

.

(b)

Definition of IECC

Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) is amended by adding at the end the following:

(17)

IECC

The term IECC means the International Energy Conservation Code.

.

242.

Multifamily and Manufactured Housing Energy Efficiency Grant Program

(a)

Definitions

In this section:

(1)

Eligible entity

The term eligible entity means a State or local government agency or nonprofit organization that implements energy efficiency programs to increase energy efficiency in multifamily buildings or manufactured housing.

(2)

Energy efficiency program

The term energy efficiency program means a program designed to increase energy efficiency in multifamily buildings and manufactured housing through financial incentives, building renovation and construction, appliance retrofits, or other means, as determined by an eligible entity.

(3)

Energy Star program

The term Energy Star program means the program established by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a).

(4)

Manufactured housing

The term manufactured housing means a manufactured home (as defined in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402)).

(5)

Multifamily building

The term multifamily building means a structure with 5 or more dwelling units.

(6)

Secretary

The term Secretary means the Secretary of Energy.

(b)

Establishment

The Secretary shall establish a program, to be known as the Multifamily and Manufactured Housing Energy Efficiency Grant Program, under which the Secretary shall provide grants to eligible entities to carry out energy efficiency programs in accordance with this section.

(c)

Purpose

The purpose of the program established under this section is to provide financial assistance to eligible entities to carry out energy efficiency programs to increase energy efficiency in multifamily buildings and manufactured housing in a manner that—

(1)

demonstrates an innovative approach to energy efficiency;

(2)

maximizes the cost effectiveness of Federal and non-Federal expenditures;

(3)

maximizes energy efficiency potential for recipients;

(4)

prioritizes recipients with the greatest financial need;

(5)

prioritizes efficiency programs with high levels of matching funds;

(6)

maintains geographical diversity in allocating grants; and

(7)

is replicable.

(d)

Grants

The Secretary shall make grants to eligible entities to implement energy efficiency program under this section through—

(1)

in the case of multifamily buildings—

(A)

renovation of multifamily buildings; and

(B)

encouragement and recommendations for replacement of appliances, equipment, and systems with low energy efficiency with appliances, equipment, and systems that meet criteria established under the Energy Star program;

(2)

in the case of manufactured housing, rebates to owners of manufactured housing constructed before calendar year 1976 to assist the owners in replacing the manufactured housing with manufactured housing that meets criteria established under the Energy Star program; and

(3)

other innovative approaches, as determined by the eligible entities and approved by the Secretary.

(e)

Administration

An eligible entity that receives a grant under this section shall—

(1)

maintain such records and evidence of compliance as the Secretary may require;

(2)

develop and distribute information and materials and conduct programs to provide technical services and assistance to encourage planning, financing, and design of energy-efficient multifamily buildings or manufactured housing; and

(3)

report publicly the results of a project conducted under this section to enable other eligible entities to learn from each project.

(f)

Authorization of appropriations

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

243.

Building training and assessment centers

(a)

In general

The Secretary of Energy shall provide grants to institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) to establish building training and assessment centers—

(1)

to identify opportunities for optimizing energy efficiency and environmental performance in buildings;

(2)

to promote the application of emerging concepts and technologies in commercial and institutional buildings;

(3)

to train engineers, architects, building scientists, building energy permitting and enforcement officials, and building technicians in energy-efficient design and operation;

(4)

to assist institutions of higher education in training building technicians;

(5)

to promote research and development for the use of alternative energy sources to supply heat and power for buildings, particularly energy-intensive buildings; and

(6)

to coordinate with and assist State-accredited technical training centers, community colleges, and local offices of the National Institute of Food and Agriculture and ensure appropriate services are provided under this section to each region of the United States.

(b)

Coordination and nonduplication

(1)

In general

The Secretary shall coordinate the program with the Industrial Assessment Centers program established under this Act and with other Federal programs to avoid duplication of effort.

(2)

Collocation

To the maximum extent practicable, building, training, and assessment centers established under this section shall be collocated with Industrial Assessment Centers.

(c)

Authorization of appropriations

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

II

Weatherization assistance for low-income persons

251.

Weatherization assistance for low-income persons

Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended—

(1)

in paragraph (4), by striking and at the end;

(2)

in paragraph (5), by striking the double periods at the end and inserting ; and; and

(3)

by adding at the end the following:

(6)

$1,700,000,000 for each of fiscal years 2011 through 2015.

.

III

State Energy Program

255.

State Energy Program

Section 365 of the Energy Policy and Conservation Act (42 U.S.C. 6325) is amended by striking subsection (f) and inserting the following:

(f)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this part $250,000,000 for each of fiscal years 2011 through 2015, to remain available until expended.

.

IV

State energy efficiency grants program

261.

Definitions

In this part:

(1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency, acting in consultation with the Secretary.

(2)

ANSI

The term ANSI means the American National Standards Institute.

(3)

ASHRAE

The term ASHRAE means the American Society of Heating, Refrigerating and Air Conditioning Engineers.

(4)

Building energy code policy

The term building energy code policy means a policy that provides—

(A)

a building energy code for residential buildings throughout a State that meets or exceeds the 2009 International Energy Conservation Code;

(B)

a building energy code for commercial buildings throughout the State that meets or exceeds the ANSI/ASHRAE/IES Standard 90.1 (2007); and

(C)

a plan for the jurisdiction achieving compliance with subparagraphs (A) and (B) not later than 8 years after the date of enactment of this Act in at least 90 percent of new and renovated residential and commercial building space, including compliance through—

(i)

active training and enforcement programs; and

(ii)

measurement of the rate of compliance each year.

(5)

Commercial building

The term commercial building means a building that is—

(A)

covered by ASHRAE/IES Standard 90.1 (2007);

(B)

located in the United States; and

(C)

constructed before the date of enactment of this Act.

(6)

Electric utility

The term electric utility means any individual, entity, or State agency that distributes electricity directly to retail consumers pursuant to a legal, regulatory, or contractual obligation.

(7)

Energy efficiency measure

The term energy efficiency measure means an installed measure (including products, equipment, systems, services, and practices) that result in reductions in end-use demand for externally supplied energy, or fuel, by a consumer, facility, or user.

(8)

Home

The term home means a principal residential dwelling unit that is—

(A)

located in the United States; and

(B)

constructed before the date of enactment of this Act.

(9)

IESNA

The term IESNA means the Illuminating Engineering Society of North America.

(10)

Natural gas utility

The term natural gas utility means any individual, entity, or State agency engaged in the local distribution of natural gas to any ultimate consumer of natural gas.

(11)

Secretary

The term Secretary means the Secretary of Energy, acting in consultation with the Administrator.

(12)

State

The term State means—

(A)

a State;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico;

(D)

Guam;

(E)

American Samoa; and

(F)

the United States Virgin Islands.

262.

State energy efficiency retrofit programs

(a)

In general

The Secretary shall make grants to States to carry out energy efficiency retrofit programs in accordance with this section.

(b)

Grant awards

The Secretary shall apply performance-based criteria in awarding grants to States under this section, which shall give priority for funding of energy efficiency retrofit programs based on—

(1)

the cost-effectiveness of the energy efficiency programs;

(2)

the number and quality of jobs created;

(3)

the quantity of energy and water saved;

(4)

the development of an effective plan for evaluation, measurement, and verification of energy savings;

(5)

the inclusion of measures—

(A)

to reach underserved populations;

(B)

to provide for independent evaluation and adequate incentives for successful program management; and

(C)

to leverage private sector funds and use innovative financing methods to implement more comprehensive energy efficiency projects, including the methods described in section 266;

(6)

the effective use of grant funds provided under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5); and

(7)

progress on the adoption and implementation of the building energy code policies.

(c)

Implementation

A State that receives a grant to carry out an energy efficiency program under this section may implement the program through the State or a third party designated by the State, including an energy service company, an electric utility, a natural gas utility, a third party administrator designated by the State, or a unit of local government.

(d)

Home efficiency retrofits program

(1)

In general

A State may use a grant provided under this section to provide a grant to an owner of a home for an energy efficiency retrofit of the home, on completion of the retrofit, if the retrofit is carried out in accordance with—

(A)

the prescriptive option described in paragraph (2); or

(B)

the performance-based option described in paragraph (3).

(2)

Prescriptive option

(A)

In general

A grant provided for the energy retrofit of a home under the prescriptive option described in this paragraph shall be made for achieving energy savings from measures—

(i)

selected from a prescriptive list established under subparagraph (B); and

(ii)

installed in the home.

(B)

List

Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a list of combinations of energy savings measures that can be implemented by the owner of a home to save at least—

(i)

10 percent on whole home energy consumption; and

(ii)

20 percent on whole home energy consumption.

(C)

Amount of grant

Subject to subparagraph (E)(ii), the amount of a grant provided to the owner of a home under this paragraph shall be—

(i)

$1,000 for energy savings of 10 percent described in subparagraph (B)(i); and

(ii)

$2,000 for energy savings of not less than 20 percent, but not more than 50 percent, described in subparagraph (B)(ii).

(D)

Verification

To be eligible for a grant for the energy retrofit of a home in a State under this paragraph, the owner of a home shall submit to the State a certification by the contractor or installer that carried out the retrofit that the measures undertaken for the retrofit—

(i)

are described on the list established under subparagraph (B); and

(ii)

were installed properly.

(E)

Administration

The Secretary may—

(i)

discontinue the prescriptive option established under this paragraph at any time after the date that is 1 year after the date of enactment of this Act; and

(ii)

adjust the amount of grants provided under this paragraph.

(3)

Performance-based option

(A)

In general

A grant provided for the energy retrofit of a home under the performance-based option described in this paragraph shall be made for retrofits that achieve whole home energy savings.

(B)

Amount of grant

Subject to subparagraph (E), the amount of a grant provided to the owner of a home under this paragraph shall be—

(i)

$3,000 for a 20-percent reduction in whole home energy consumption; and

(ii)

an additional $150 for each additional 1-percent reduction up to the lower of—

(I)

$12,000; or

(II)

50 percent of the total retrofit cost.

(C)

Energy savings

(i)

In general

Energy savings under this paragraph shall be determined by a comparison of the energy consumption of the home before the retrofit to the consumption of the home after the retrofit.

(ii)

Documentation

The percent improvement in energy consumption under this paragraph shall be documented through—

(I)

the use of whole home simulation software programs approved by the Administrator; or

(II)

a comparison of the difference before and after the retrofit as measured by home energy ratings on the Home Energy Rating System Index as specified in the Residential Energy Services Network Publication No. 06–001 (or a successor publication).

(D)

Verification

(i)

In general

Subject to clause (ii), the Administrator shall ensure that at least 15 percent of the retrofits performed under this paragraph are randomly subject to a third party verification of all work associated with the retrofit.

(ii)

Adjustment

On or after the date that is 1 year after the date of enactment of this Act, the Administrator may adjust the percentage specified under clause (i) based on program experience.

(iii)

Contractor certification

Subject to clause (iv), the Administrator—

(I)

shall determine the level of contractor certification appropriate for retrofits performed under this paragraph; and

(II)

may adjust the level in response to program data.

(iv)

Advanced contractor certifications

The Secretary may develop an additional incentive for advanced contractor certifications under clause (iii).

(E)

Administration

On or after the date that is 1 year after the date of enactment of this Act, the Secretary may adjust the grant amounts provided under this paragraph based on program data.

(e)

Commercial buildings efficiency retrofits program

(1)

In general

A State may use a grant provided under this section to provide incentives for energy efficiency retrofits to the owner of 1 or more commercial buildings, including submetered areas or individual tenant spaces within a commercial building or an aggregation of commercial buildings.

(2)

Energy savings

(A)

In general

A State may provide incentives to the owner of 1 or more commercial buildings for energy efficiency retrofits under this subsection if the retrofits improve energy performance by at least 20 percent compared to energy consumption during the previous year of the 1 or more commercial buildings, while adjusting for other relevant factors including changes in occupancy loads and process energy.

(B)

Benchmarking tool

The energy savings shall be determined by using an established energy benchmarking tool designated by the Administrator.

(3)

Incentives

(A)

In general

The Secretary shall establish the amount and form of the incentives provided under this subsection in a manner that encourages implementation of retrofits that achieve the largest and most durable improvements in energy performance.

(B)

Amount

(i)

In general

Subject to clause (ii), the amount of the incentives provided under this subsection shall be equal to—

(I)

$0.15 per square foot of retrofit floor area for 20 to 24 percent savings;

(II)

$0.75 per square foot of retrofit floor area for 25 to 29 percent savings;

(III)

$1.20 per square foot of retrofit floor area for 30 to 34 percent savings;

(IV)

$1.60 per square foot of retrofit floor area for 35 to 39 percent savings;

(V)

$2.05 per square foot of retrofit floor area for 40 to 44 percent savings;

(VI)

$2.50 per square foot of retrofit floor area for 45 to 49 percent savings; and

(VII)

$3.00 per square foot of retrofit floor area for 50 or more percent savings.

(ii)

Modification

The Secretary may modify the amount and form of incentives provided under this subsection based on data gathered during program implementation, including the development of incentives for particular building types.

(C)

Timing

(i)

Payment on completion

On the completion of the energy retrofit of 1 or more commercial buildings and the verification of at least a 20-percent energy savings from the retrofit, the State shall provide to the owner or agent of the 1 or more commercial buildings 60 percent of the qualified incentive amount for the retrofit determined under subparagraph (B).

(ii)

Remaining payments

During the 3-year period beginning on the date of the initial payment under clause (i), the State shall provide to the owner or agent of the commercial building the remaining 40 percent of the qualified incentive amount for the retrofit determined under subparagraph (B) for any energy savings of 20 percent or more, with the amount awarded proportionate to the level of sustained performance improvement.

(iii)

Minimum improvements

No incentives shall be provided under this subsection for sustained performance improvements of less than 20 percent, as determined by annual audits.

(iv)

Disclosure

The Secretary may require such information as is necessary to determine energy performance under this subsection.

(f)

Historic buildings

Notwithstanding subsections (d) and (e), a building that is eligible for or listed in the National Register of Historic Places shall be eligible for incentives under this section in amounts of up to 120 percent of the applicable amounts described in subsections (d) and (e).

(g)

Report

(1)

In general

Not later than 300 days after the date that the Secretary initially provides funds to a State under this section, the State shall submit to the Secretary a report on the use of the funds.

(2)

Contents

The report shall include a description of—

(A)

the measured and verified energy savings produced under this section;

(B)

the projected energy savings under this section during the subsequent 1-year period;

(C)

the specific entities implementing the energy efficiency programs;

(D)

the beneficiaries who received the efficiency improvements;

(E)

the manner in which funds provided under this section were used;

(F)

the sources (such as mortgage lenders, utility companies, and local governments) and types of financing used by the beneficiaries to finance the retrofit expenses that were not covered by grants provided in this part;

(G)

the direct and indirect employment created as a result of the programs supported by the funds;

(H)

the results of verification requirements; and

(I)

any other information the Secretary considers appropriate.

(3)

Noncompliance

If the Secretary determines that a State has not provided the information required under this subsection, the Secretary shall provide to the State a period of at least 90 days to provide any necessary information.

263.

Administrative and technical support

Subject to section 265(b)(2), not later than 90 days after the date of enactment of this Act, the Secretary may provide such administrative and technical support to States as is necessary to carry out this part.

264.

Regulations

Not later than 180 days after the date of enactment of this Act, the Secretary shall promulgate such regulations as are necessary to carry out this part.

265.

Funding

(a)

In general

There are authorized to be appropriated such sums as are necessary to carry out this part for each of fiscal years 2010 through 2015.

(b)

Use

Funds provided for a fiscal year under subsection (a) shall be allocated as follows:

(1)

In the case of State energy efficiency grants programs under section 262:

(A)

45 percent for the home efficiency retrofits program under section 262(d).

(B)

45 percent for the commercial buildings efficiency retrofits program under section 262(e).

(C)

10 percent to provide administrative and technical support to the States to carry out this part.

(c)

Limitation on the use of funds

A State shall use not more than—

(1)

10 percent of the funds provided for a fiscal year under this part for administration of programs under this part; and

(2)

5 percent of the funds provided for a fiscal year under part for measurement and verification.

266.

Home Energy Retrofit Finance Program

(a)

Definitions

In this section:

(1)

Eligible participant

The term eligible participant means a homeowner, apartment complex owner, residential cooperative association, or condominium association that finances energy efficiency improvements to homes and residential buildings under this section.

(2)

Program

The term program means the Home Energy Retrofit Finance Program established under subsection (b).

(3)

Qualified program delivery entity

The term qualified program delivery entity means a local government, energy utility, or any other entity designated by the Secretary that administers the program for a State under this section.

(b)

Establishment

The Secretary shall provide Home Energy Retrofit Finance Program grants to States for the purpose of establishing or expanding a State revolving finance fund to support financing offered by qualified program delivery entities for energy efficiency measures and renewable energy improvements to existing homes and residential buildings (including apartment complexes, residential cooperative associations, and condominium buildings under 5 stories).

(c)

Funding mechanism

In carrying out the program, the Secretary shall provide funds to States, for use by qualified program delivery entities that administer finance programs directly or under agreements with collaborating third party entities, to capitalize revolving finance funds and increase participation in associated financing programs.

(d)

Eligibility of qualified program delivery entities

To be eligible to participate in the program, a qualified program delivery entity shall establish a method by which eligible participants may pay over time for the financed cost of allowable energy efficiency measures and renewable energy improvements.

(e)

Allocation

In making funds available to States for each fiscal year under this section, the Secretary shall use the allocation formula used to allocate funds to States to carry out State energy conservation plans under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).

(f)

Use of funds

Of the amounts in a State revolving finance fund—

(1)

not more than 20 percent may be used by qualified program delivery entities for interest rate reductions for eligible participants; and

(2)

the remainder shall be available to provide direct funding or other financial support to qualified program delivery entities.

(g)

State revolving finance funds

On repayment of any funds made available by qualified program delivery entities under the program, the funds shall be deposited in the applicable State revolving finance fund to support additional financing to qualified program delivery entities for energy efficiency measures and renewable energy improvements.

(h)

Coordination with State energy efficiency retrofit programs

Home energy retrofit programs that receive financing through the program shall be carried out in accordance with all authorized measures, performance criteria, and other requirements of section 262(d).

(i)

Program evaluation

(1)

In general

The Secretary shall conduct a program evaluation to determine—

(A)

how the program is being used by eligible participants, including what improvements have been most typical and what regional distinctions exist, if any;

(B)

what improvements could be made to increase the effectiveness of the program; and

(C)

the quantity of verifiable energy savings and renewable energy deployment achieved through the program.

(2)

Reports

(A)

In general

Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that describes the results of the program evaluation required under this subsection, including any recommendations.

(B)

State reports

Not less than once every 2 years, States participating in the program shall submit to the Secretary reports on the use of funds through the program that include any information that the Secretary may require.

(j)

Authorization of appropriations

(1)

In general

There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2010 through 2015.

(2)

Administrative expenses

An amount not exceeding 5 percent of the amounts made available under paragraph (1) shall be available for each fiscal year to pay the administrative expenses necessary to carry out this section.

V

Federal efficiency and renewables

271.

Federal purchase requirement

Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) (as amended by section 133) is amended—

(1)

in subsection (a), in the matter preceding paragraph (1), by striking electric;

(2)

by redesignating subsection (d) as subsection (f) and moving that subsection to appear after subsection (e);

(3)

by inserting after subsection (c) the following:

(d)

Separate calculation

Renewable energy produced at a Federal facility, on Federal land, or on Indian land (as defined in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501))—

(1)

shall be calculated separately from renewable energy used; and

(2)

may be used individually or in combination to comply with subsection (a).

; and

(4)

by adding at the end the following:

(g)

Contract period

(1)

In general

Notwithstanding section 501(b)(1)(B) of title 40, United States Code, a contract entered into by a Federal agency to acquire renewable energy may be made for a period of not more than 30 years.

(2)

Technical assistance

The Secretary shall provide technical assistance to Federal agencies to enter into contracts under this subsection.

(3)

Standardized renewable energy purchase agreement

Not later than 90 days after the date of enactment of this subsection, the Secretary, acting through the Federal Energy Management Program, shall publish a standardized renewable energy purchase agreement setting forth commercial terms and conditions that can be used by Federal agencies to acquire renewable energy.

.

272.

Competition requirements for task or delivery orders under energy savings performance contracts

(a)

In general

Section 801(a) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the end the following

(3)

Task or delivery orders

(A)

In general

The head of a Federal agency may issue a task or delivery order under an energy savings performance contract by—

(i)
(I)

notifying all contractors that have received an award under the contract that the agency proposes to consider using energy savings performance services for all or part of the facilities of the agency;

(II)

soliciting an expression of interest in the performance of site surveys or investigations and feasibility designs and studies and the submission of qualifications from the contractors; and

(III)

including in the notice summary information concerning energy use for any facilities that the agency has specific interest in including in the contract;

(ii)

reviewing all expressions of interest and qualifications submitted pursuant to the notice provided under clause (i);

(iii)

selecting 2 or more contractors (from among the contractors reviewed under clause (ii)) to analyze the respective qualifications of the contractors to implement potential energy conservation measures, including requesting references demonstrating experience on similar efforts and the resulting energy savings of the similar efforts;

(iv)

selecting and authorizing—

(I)

more than 1 contractor (from among the contractors 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 the services), for the purpose of allowing each such contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures; or

(II)

1 contractor (from among the contractors selected under clause (iii)) to conduct a site survey, investigation, feasibility design and study, or similar assessment 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 1 or more 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 the 1 or more contractors.

(B)

Competition requirements

The issuance of a task or delivery order for energy savings performance contracting services pursuant to subparagraph (A) shall be consider to satisfy the task and delivery order competition requirements of 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)

Guidance

The Secretary may issue guidance as necessary to Federal agencies issuing task or delivery orders pursuant to subparagraph (A).

.

(b)

Nonapplicability

The amendment made by subsection (a) does not apply to a task or delivery order issued before the date of enactment of this Act.

273.

Funding flexibility

Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by striking subparagraph (E) and inserting the following:

(E)

Funding options

Notwithstanding any other provision of law, in carrying out a contract under this title, a Federal agency may use any combination of—

(i)

appropriated funds; and

(ii)

private financing under energy savings performance contracts or other private financing of energy savings measures.

.

274.

Definition of energy savings

Section 804(2)(B) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)(B)) is amended by inserting and installation of renewable energy systems after cogeneration or heat recovery.

275.

National energy efficiency improvement goals

(a)

Goals

The goals of the United States are—

(1)

to achieve an improvement in the overall energy productivity of the United States (measured in gross domestic product per unit of energy input) of at least 2.5 percent per year by the year 2012; and

(2)

to maintain that annual rate of improvement each year through 2030.

(b)

Strategic plan

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the Secretary), in cooperation with the Administrator of the Environmental Protection Agency and the heads of other appropriate Federal agencies, shall develop a strategic plan to achieve the national goals for improvement in energy productivity established under subsection (a).

(2)

Public input and comment

The Secretary shall develop the plan in a manner that provides appropriate opportunities for public input and comment.

(c)

Plan contents

The strategic plan shall—

(1)

establish future regulatory, funding, and policy priorities to ensure compliance with the national goals;

(2)

include energy savings estimates for each sector; and

(3)

include data collection methodologies and compilations used to establish baseline and energy savings data.

(d)

Plan updates

(1)

In general

The Secretary shall—

(A)

update the strategic plan biennially; and

(B)

include the updated strategic plan in the national energy policy plan required by section 801 of the Department of Energy Organization Act (42 U.S.C. 7321).

(2)

Contents

In updating the plan, the Secretary shall—

(A)

report on progress made toward implementing efficiency policies to achieve the national goals established under subsection (a); and

(B)

verify, to the maximum extent practicable, energy savings resulting from the policies.

(e)

Report to Congress and public

The Secretary shall submit to Congress, and make available to the public, the initial strategic plan developed under subsection (b) and each updated plan.

276.

Energy sustainability and efficiency grants and loans for institutions

Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1) (as amended by section 201(2)) is amended—

(1)

in subsection (a)(5), by striking ‘or a designee’ and inserting ‘a not-for-profit hospital, a not-for-profit inpatient health care facility, or a designated agent’;

(2)

in subsection (c)(1), by striking subparagraph (C);

(3)

in subsection (f)(3)(A), by striking ‘‘$1,000,000’’ and inserting $2,500,000; and

(4)

in subsection (j)(1), by striking ‘$250,000,000 for each of fiscal years 2009 through 2013’ and inserting ‘such sums as are necessary for each of fiscal years 2010 through 2015.

277.

Federal implementation strategy for energy-efficient information and communications technologies

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended—

(1)

by redesignating the second subsection (f) (relating to large capital energy investments) as subsection (g); and

(2)

by adding at the end the following:

(h)

Federal implementation strategy for energy-efficient information and communications technologies

(1)

In general

Not later than 1 year after the date of enactment of this subsection, each Federal agency shall collaborate with the Director of the Office of Management and Budget (referred to in this subsection as the Director) to create an implementation strategy (including best-practices and measurement and verification techniques) for the maintenance, purchase, and use of energy efficient and energy-reducing information and communications technologies and practices.

(2)

Administration

In developing an implementation strategy, each Federal agency shall—

(A)

consider information and communications technologies and infrastructure, including—

(i)

advanced metering infrastructure;

(ii)

information and communications technology services and products;

(iii)

efficient data center strategies;

(iv)

computer power management;

(v)

applications modernization and rationalization;

(vi)

building systems energy efficiency; and

(vii)

telework;

(B)

ensure that the agency is eligible to realize savings and rewards brought about through increased efficiency; and

(C)

to the maximum extent practicable, incorporate existing standards, specifications, performance metrics, and best management practices.

(3)

Performance goals

(A)

In general

Not later than 180 days after the date of enactment of this subsection, the Director shall establish performance goals for evaluating the efforts of Federal agencies in improving the maintenance, purchase, and use of energy efficiency of information and communications technology systems.

(B)

Administration

The performance goals shall—

(i)

measure information technology costs over a specific time period of 3 to 5 years; and

(ii)

provide, to the maximum extent practicable, a complete picture of all costs, including energy costs.

(4)

Reports

(A)

Agency reports

Each Federal agency subject to the requirements of this subsection shall include in the report of the agency under section 527 of the Energy Independence and Security Act of 2007(42 U.S.C. 17143) a description of the efforts of the agency under this subsection.

(B)

OMB Government efficiency report and score cards

Effective beginning not later than April 1, 2011, the Director shall include in the annual report and scorecard of the Director under section 528 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17143) a description of the efforts of Federal agencies under this subsection.

.

278.

Incentives for Federal agencies to participate in energy efficiency programs

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

(1)

in paragraph (1), by inserting (including Independent System Operators, State agencies, and third party entities implementing those programs on behalf of utilities or State agencies) after electric utilities;

(2)

in paragraph (2), by inserting State agency, and third party entity implementing those programs on behalf of utilities or State agencies, after such utility,;

(3)

in paragraph (3), by inserting State agencies, and third party entities implementing those programs on behalf of utilities or State agencies, after gas utilities; and

(4)

in the paragraph (4), by inserting or State agency after a utility.

VI

Energy efficiency information on homes and buildings

281.

Building energy performance information program

(a)

Definitions

In this section:

(1)

Achieved performance

The term achieved performance means the measured energy consumption of a building determined using actual consumption data normalized for appropriate variables.

(2)

Administrator

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

(3)

Building energy performance

The term building energy performance means primary energy consumption per square foot of floor space, or other measure of energy consumption per energy service, as determined by the Secretary for a building type.

(4)

Building energy performance value

The term building energy performance value means a value used for comparing building energy performance among buildings, as determined by methods developed by the Administrator.

(5)

Building type

The term building type means a type of a building, as identified by the 1 or more principal activities in the building, such as office buildings, laboratories, libraries, data centers, retail spaces, hotels, food sales, food service, warehouses, and educational facilities.

(6)

Commercial Buildings Energy Consumption Survey

The term Commercial Buildings Energy Consumption Survey means the Commercial Buildings Energy Consumption Survey authorized by section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k)).

(7)

Covered building type

The term covered building type means a building type for which statistically significant energy performance data exist to serve as the basis of measurement protocols and certifications for building energy use.

(8)

Designed performance

The term designed performance means the estimated energy performance of a building using a standardized set of operational conditions obtained from building construction documents and other available data.

(9)

Measurement protocol

The term measurement protocol means the methodology, prescribed by the Administrator, for determining the achieved performance or designed performance and the associated building energy performance value for a building of a specific building type.

(10)

Residential Energy Consumption Survey

The term Residential Energy Consumption Survey means the Residential Energy Consumption Survey authorized by section 205(k) of the Department of Energy Organization Act (42 U.S.C. 7135(k)).

(11)

Secretary

The term Secretary means the Secretary of Energy.

(b)

Building energy performance information program

The Administrator, in consultation with the Secretary, shall establish a voluntary energy performance information program with broad applicability to buildings nationwide—

(1)

to provide timely and accurate information on comparative energy performance; and

(2)

to increase public awareness of the importance of building energy efficiency and energy performance through public education.

(c)

Building type determination for assessment of energy performance

(1)

Report

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to Congress a report that describes—

(A)

all principal building types for which statistically significant energy performance data exists to serve as the basis for building energy performance information; and

(B)

those building types for which additional data are required.

(2)

Additional resources and reports

(A)

In general

For each principal building type identified under paragraph (1)(B), the Secretary shall include a description of—

(i)

additional resources that will be required to fully develop the relevant databases; and

(ii)

the anticipated timeline for completion of the data development.

(B)

Additional reports

The Secretary shall submit to Congress additional reports on information required under this subsection as often as is considered necessary by the Secretary, but not less than once every 2 years.

(d)

Improving building energy consumption databases

(1)

Commercial Buildings Energy Consumption Survey

The Secretary shall support improvements to the Commercial Buildings Energy Consumption Survey or such other commercial buildings energy performance databases as the Secretary considers appropriate—

(A)

to characterize the achieved performance of existing commercial buildings for the building types covered by the Commercial Buildings Energy Consumption Survey (as of the date of enactment of this Act); and

(B)

to cover additional building types, as identified by the Secretary, to enable the development of measurement protocols for those building types under subsection (e) that cover at least 85 percent of all major commercial building energy use not later than 5 years after the date of enactment of this Act.

(2)

Residential energy consumption survey

While conducting the Residential Energy Consumption Survey, the Secretary may evaluate whether the data, or other data types are appropriate, to enable the development of achieved performance measurement formats for residential building energy not later than 5 years after the date of enactment of this Act.

(e)

Energy performance measurement

(1)

Measurement

Not later than 2 years after identifying a covered building type, the Administrator shall, after providing notice and soliciting public comment, establish —

(A)

methods to measure achieved performance and designed performance; and

(B)

procedures for collecting and updating information.

(2)

Information display

After providing notice and soliciting public comment, the Administrator may—

(A)

establish 1 or more formats that—

(i)

display achieved performance and designed performance;

(ii)

are tailored to building types; or

(iii)

display other desired information related to building energy performance; and

(B)

provide for the display of both achieved performance and designed performance for a building, other than in a case in which data are not available, practicable, or cost effective.

(3)

Existing programs

In developing formats under this subsection, the Administrator shall consider existing public and private programs for building energy performance information, including programs outside of the United States.

(4)

Certificates

After providing for appropriate notice and comment, the Administrator shall publish the final specifications for the information, including on certificates or other forms of information applicable to covered building types.

(5)

Program review

At least once every 5 years, the Administrator shall review, and as necessary, modify the building energy performance information program.

(f)

Public outreach

In consultation with the Administrator and in conjunction with other energy efficiency awareness efforts, the Secretary shall establish a business and consumer education program to increase awareness of the importance of building energy efficiency and the availability of building energy performance information, to facilitate widespread use of building energy performance information programs.

(g)

Demonstration projects

(1)

In general

The Administrator, in consultation with the Secretary shall conduct demonstration projects for different building types to evaluate the sufficiency of the model certificate specifications, measurement, and other alternatives proposed by State or local agencies, utilities, or other implementing organizations.

(2)

Zero-Net Energy Commercial Buildings Initiative

The Secretary shall coordinate demonstration projects under this subsection with the Zero-Net Energy Commercial Buildings Initiative established under section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082).

(h)

Voluntary State and local information program

(1)

Coordination with States and local governments

On the request of a State or local government, the Secretary may—

(A)

coordinate with the State energy office or other State agencies, or with the appropriate local government offices, on the development of a building energy performance information program;

(B)

provide technical assistance and information on best practices; and

(C)

in the case of a program that includes the key elements in paragraph (2), provide a grant for initial program administration.

(2)

Key elements of a building energy performance information program

A model building energy information performance program shall—

(A)

make information on building energy performance available to the public; and

(B)

use the information formats established by the Administrator under subsection (e) or alternative formats.

(3)

Progress report

Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to Congress a progress report that—

(A)

evaluates the effectiveness of efforts to advance the use of the program by States and units of local government; and

(B)

recommends any further steps that are necessary to broaden the use of the program by States and units of local government.

(i)

Public building implementation

(1)

Federal buildings

(A)

In general

Not later than 3 years after the date of enactment of this Act, each Federal agency owning or operating buildings of covered building types shall implement the building energy information program in a manner that—

(i)

30 percent of covered buildings built before the final rule establishing the program; and

(ii)

90 percent of the stock of covered building types built after the establishment of the program.

(B)

Guidelines

Not later than 1 year after the date of enactment of this Act, the Secretary shall develop guidelines for the implementation of Federal building energy performance information programs.

(2)

State and units of local government buildings

(A)

In general

Effective beginning on the date that is 3 years after the date of enactment of this Act, any newly constructed building to be owned by a State, county, or local government that is a covered building and receives Federal financial assistance shall be required to use the certificate provided for under this section.

(B)

Information

The Secretary shall provide information concerning the building energy performance information program for Federal buildings (including information on the results, best practices, accompanying analysis, and implementation) to States and units of local governments for adaptation and adoption, at the discretion of the States and units of local government, as soon as practicable after the date of enactment of this Act.

(j)

Energy Star for existing buildings program

The Administrator may use information, measurements, and other forms of energy performance information developed under this section to establish a voluntary Energy Star program that recognizes high efficiency retrofits of existing commercial and residential buildings.

(k)

Authorization of appropriations

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

282.

Evaluation, measurement, and verification of energy savings

(a)

Definitions

In this section:

(1)

Evaluation

The term evaluation means the performance of studies and activities to determine—

(A)

the effects of a program or project;

(B)

changes in energy efficiency markets;

(C)

levels of demand or energy savings; and

(D)

program cost-effectiveness.

(2)

Impact evaluation

The term impact evaluation means the evaluation of the program or project-specific, directly induced changes in energy savings and greenhouse gas emissions reductions attributable to a program or project.

(3)

Measurement and verification

The term measurement and verification means data collection, monitoring, and analysis associated with the calculation of total energy and demand savings from individual sites or projects, including as a part of an impact evaluation.

(b)

Rules

Not later than 2 years after the date of enactment of this Act, the Secretary shall promulgate uniform rules to document the energy savings and avoided greenhouse gas emissions of energy efficiency programs and projects that—

(1)

receive funding from Federal, State, or local governments or public utilities;

(2)

require specific levels of energy reductions; and

(3)

are eligible for allowances or allowance proceeds based on energy savings and greenhouse gas emissions reductions under climate change regulations.

(c)

Requirements

(1)

In general

In developing rules under subsection (b), the Secretary shall ensure, to the maximum extent practicable, that the rules—

(A)

are enforceable;

(B)

give reasonable assurance that energy savings and avoided greenhouse gas emission from energy efficiency programs and projects are verifiable and additional;

(C)

are complete and transparent;

(D)

balance risk management, certainty of estimated impacts, and implementation costs; and

(E)

provide sufficient direction relating to methodologies and assumptions (including additionality, market transformation impacts, and measure persistence) to ensure—

(i)

reasonable uniformity among various States and entities; and

(ii)

consistency in results.

(2)

Process

In developing rules under subsection (b), the Secretary shall—

(A)

consider and harmonize the rules with existing domestic and international protocols wherever practicable; and

(B)

consult with States, utilities, and other appropriate stakeholders.

VII

Residential High Performance Zero-Net-Energy Buildings Initiative

291.

Residential High Performance Zero-Net-Energy Buildings Initiative

(a)

Definitions

In this section:

(1)

Director

The term Director means the Director of Residential High-Performance Zero-Net-Energy Buildings appointed under subsection (c).

(2)

Initiative

The term Initiative means the Residential High Performance Zero-Net-Energy Buildings Initiative established under subsection (b).

(3)

Secretary

The term Secretary means the Secretary of Energy, acting through the Assistant Secretary of Energy Efficiency and Renewable Energy.

(4)

Zero-net-energy building

The term zero-net-energy building means a residential building 4 stories or less that is designed, constructed, and operated—

(A)

to require greatly reduced needs for energy through efficiency gains;

(B)

to meet the balance of energy needs through renewable technologies;

(C)

to produce no net emissions of greenhouse gases in space heating, cooling, domestic water heating, lighting, and appliances; and

(D)

to be economically viable.

(b)

Establishment

The Secretary shall establish and carry out an initiative, to be known as the Residential High-Performance Zero-Net-Energy Buildings Initiative

(1)

to reduce the quantity of energy consumed, and increase the quantity of renewable energy generated, in residential buildings located in the United States; and

(2)

to promote the development of zero-net-energy buildings in the United States.

(c)

Director

(1)

In general

The Secretary shall appoint a Director of Residential High-Performance Zero-Net-Energy Buildings to carry out the Initiative.

(2)

Position

The position of the Director shall be a career reserved position in the Senior Executive Service,

(d)

High-performance residential green building partnership consortium

(1)

Initial period

Not later than 180 days after the date of enactment of this Act, the Director shall—

(A)

use existing resources and frameworks (such as the residential research and development program) to enter into 1 or more agreements with the competitively selected Building America Industry consortia in existence on the date of enactment of this Act, if feasible, to develop and carry out the Initiative during the 5-year period beginning on the date of enactment of this Act; or

(B)

competitively select, and enter into 1 or more agreements with, 1 or more consortia to develop and carry out the Initiative during the 5-year period.

(2)

Subsequent periods

Not later than 5 years after the date of enactment of this Act and every 5 years thereafter, the Director shall competitively select, and enter into 1 or more agreements with, 1 or more consortia to develop and carry out the Initiative during a 5-year period.

(3)

Agreements

In entering into an agreement with a consortium under this subsection, the Director shall, if appropriate, use the authority described in section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g)).

(e)

Goals

The goals of the Initiative shall be—

(1)

to develop and disseminate technologies, practices, and policies for the development and establishment of zero-net-energy buildings; and

(2)

to promote technologies and strategies that will enable—

(A)

the design and construction of zero-net-energy buildings (including identification and validation) by 2015; and

(B)

any new residential building constructed on or after 2020 to be a cost-effective zero-net-energy building.

(f)

Components

In carrying out the Initiative, the Director, in consultation with the consortium selected under subsection (d) and leveraging existing resources and initiatives to the maximum extent practicable, may—

(1)

conduct research and development on building science, design, materials, components, equipment and controls, operation and other practices, integration, energy use measurement, and benchmarking;

(2)

conduct pilot programs and demonstration projects to evaluate replicable approaches to achieving energy-efficient residential buildings using renewable technologies for a variety of building types in a variety of climate zones;

(3)

consider the energy benefits of improved land planning and transportation planning to maximize use of existing infrastructure;

(4)

conduct deployment, dissemination, and technical assistance activities to encourage widespread adoption of technologies, practices, and policies to achieve energy efficient residential buildings;

(5)

conduct other research, development, demonstration, and deployment activities necessary to achieve each goal of the Initiative, as determined by the Director, in consultation with the consortium;

(6)

develop training materials and courses for building professionals and trades on achieving cost-effective zero-net-energy buildings;

(7)

develop and disseminate public education materials to share information on the benefits and cost-effectiveness of zero-net-energy buildings;

(8)

support code-setting organizations and State and local governments in developing minimum performance standards in building codes that recognize the ready availability of many technologies used in zero-net-energy buildings;

(9)

develop strategies for overcoming the split incentives between builders and purchasers, and landlords and tenants, to ensure that energy-efficiency and renewable technology investments are made that are cost-effective on a lifecycle basis; and

(10)

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

(g)

Cost sharing

In carrying out this section, the Director shall require cost sharing in accordance with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

(h)

Authorization of appropriations

There are authorized to be appropriated to carry out this section—

(1)

$40,000,000 for fiscal year 2010;

(2)

$60,000,000 for each of fiscal years 2011 and 2012; and

(3)

$100,000,000 for each of fiscal years 2013 through 2020.

D

Electric grid

295.

National electric system efficiency and peak demand reduction goal

(a)

Definitions

In this section:

(1)

Applicable baseline

The term applicable baseline means the highest annual peak demand during 1 or more years determined by the Commission, in consultation with the Secretary and the North American Electric Reliability Corporation.

(2)

Commission

The term Commission means Federal Energy Regulatory Commission.

(3)

Demand reduction

The term demand reduction means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in megawatts.

(4)

Dynamic peak management control

The term dynamic peak management control means the control of megawatts of electricity through a demand response program or other means that is directly capable of actively and dynamically reducing peak demand.

(5)

Load-serving entity

(A)

In general

The term load-serving entity means an entity that provides electricity directly to retail consumers with the responsibility to ensure power quality and reliability.

(B)

Inclusions

The term load-serving entity includes an entity described in subparagraph (A) that is investor-owned, publicly-owned, owned by a rural electric cooperative, or owned by another entity.

(6)

Peak demand

The term peak demand means electricity demand—

(A)

during the highest hour on the system of a load-serving entity during a calendar year, expressed in megawatts;

(B)

measured using an alternative calculation method determined by the Commission, in consultation with the Secretary and the North American Electric Reliability Corporation; and

(C)

that takes into account monthly and seasonal variations in peak demand for electricity.

(7)

Peak demand period

The term peak demand 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 or avoid excess costs while meeting peak demand.

(8)

Regional transmission organization

The term Regional Transmission Organization means an entity that is approved as a Regional Transmission Organization by the Commission.

(9)

Smart grid

The term smart grid means smart grid (within the meaning of title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.)).

(10)

System load factor

The term system load factor means the ratio that the kilowatt hours consumed on a system bear to the highest level of demand in kilowatts on the system during a given year.

(b)

Goal

It is the policy of the United States that—

(1)

the national electric system efficiency goal of the United States is to optimize and make more efficient the planning and operation of national and local electricity systems in a manner that the system load factor of the systems will be improved by 1.5 percent per year during each of calendar years 2010 through 2030; and

(2)

the goal described in paragraph (1) can be met or exceeded by lessening the difference between the periods of lowest and highest electricity demand, with particular focus on reducing the frequency and severity of peak demand periods, using smart grid and demand response technologies, practices, and activities, including—

(A)

the reduction of overall electricity demand through the adoption of energy-efficient technologies or conservation practices;

(B)

the use of demand response technologies, practices, and activities that allow dynamic control, load-shifting, and reduction of time-based electricity consumption by load-serving entities and electricity customers, including the wide-spread installation or use of—

(i)

distributed generation;

(ii)

smart meters and equipment with smart grid capabilities;

(iii)

energy storage; and

(iv)

time-based pricing that reflects marginal electricity generation costs; and

(C)

the use of smart grid technologies, practices, and activities (including activities described in title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.)) that provide time-based information on, and dynamic control of, the electricity grid allowing for the most cost-effective, efficient, and reliable generation, transmission, and distribution of electricity.

(c)

Action plan

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary, in cooperation with the Commission, Regional Transmission Organizations, the National Association of Regulatory Utility Commissioners, and heads of other appropriate Federal agencies, shall develop an action plan to achieve or exceed the national goal established under subsection (a).

(2)

Plan contents

The action plan shall—

(A)

identify future regulatory, funding, and policy priorities that would assist the United States in meeting the national goal described in paragraph (1);

(B)

include data collection methodologies and compilations used to establish baseline and goal attainment data;

(C)

include guidelines for the establishment of dynamic peak management control goals, including—

(i)

the establishment of applicable baselines in a consistent nationwide manner; and

(ii)

the use of a methodology that provides for adjustments to baseline and goals for a load-serving entity to reflect changes in the number of customers served, weather conditions, and any other appropriate factors;

(D)

include a system and rules for measurement and verification of demand reductions; and

(E)

coordinate with any existing complementary programs or initiatives managed by load-serving entities, Regional Transmission Organizations, and States.

(3)

Public input and comment

The Secretary shall develop the plan in a manner that provides appropriate opportunities for public input and comment.

(4)

Action plan updates

The Secretary shall—

(A)

update the action plan every 3 years; and

(B)

include the updated action plan in the national energy policy plan required by section 801 of the Department of Energy Organization Act (42 U.S.C. 7321).

(5)

Report to Congress

In updating the national electric system efficiency goal established under subsection (a), the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing—

(A)

progress made toward implementing the necessary policies to meet the national goal;

(B)

the resulting cost-savings to ratepayers and the United States economy;

(C)

the improvements to the reliability and efficiency of the United States electricity grid; and

(D)

any additional legal authorities necessary to achieve the national goal.

(6)

Progress reporting and transparency for ratepayers

Not later than 2 years after the date of enactment of this Act, the Secretary shall establish a public domain website on which the Secretary shall provide information and data demonstrating progress by States, other jurisdictional entities, and load-serving entities in meeting the national electric system efficiency goal established under subsection (b).

(7)

No impact on existing State goals and standards

Nothing in this section diminishes any authority of a State or political subdivision of a State to adopt or enforce any law (including regulations) that increases electricity grid efficiency, smart grid and distributed generation deployment, dynamic peak management control, demand response and distributed storage, or the regulation of load-serving entities.

296.

Uniform national standards for interconnection of certain small power production facilities

(a)

Findings

Section 2 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601) is amended—

(1)

in paragraph (5), by striking and at the end;

(2)

in paragraph (6), by striking the period at the end and inserting , and; and

(3)

by adding at the end the following:

(7)

uniform national standards for the interconnection of certain small power production facilities.

.

(b)

Standards for interconnection

(1)

In general

Subtitle B of title I of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621 et seq.) is amended by adding at the end the following:

118.

Interconnection of certain small power production facilities

(a)

Standard for facilities of 15 kilowatts or less

The Commission shall establish a standard by which each electric utility shall make available, on request, interconnection service to any electric consumer that the electric utility serves with respect to any facility that generates up to 15 kilowatts of electric energy on the premises of the electric consumer.

(b)

Enforcement

(1)

By the Commission

(A)

In general

Except as provided in paragraph (2), the Commission may enforce the standard established under subsection (a) against any electric utility.

(B)

Administration

The requirements of the standard shall be treated as a rule enforceable under the Federal Power Act (16 U.S.C. 791a et seq.).

(2)

By a State regulatory authority

The Commission may enter into an agreement with a State regulatory authority to discontinue the enforcement of this section in the State by the Commission if the Commission finds that the State or the State regulatory authority has adopted and is enforcing a standard for interconnection services that is consistent with the standard established under subsection (a).

(3)

Resumption of Commission enforcement

The Commission may rescind an agreement under paragraph (2) and resume enforcement of the standard established under subsection (a) if, as determined by the Commission, the State has failed to enforce a consistent State standard.

(c)

Expanded standard

(1)

Report

Not later than 3 years after the date of enactment of this section, the Commission shall submit to Congress a report on whether the standard established under subsection (a) should be amended to apply to facilities that generate up to 50 kilowatts of electric energy on the premises of an electric consumer.

(2)

Authority to amend standard

(A)

In general

Except as provided in subparagraph (B), if the Commission makes an affirmative determination under paragraph (1), the Commission may, after public notice and comment, amend the standard established under subsection (a) to apply to facilities that generate up to 50 kilowatts of electric energy on the premises of an electric consumer.

(B)

Disapproval

Subparagraph (A) shall not apply if, during the first period of 90 calendar days (not counting days on which either House is not in session because of an adjournment of more than 3 days) of continuous session of Congress (broken only by an adjournment sine die) after the date of the receipt of the report under paragraph (1), a joint resolution is enacted disapproving the amendment of the standard

(d)

Model standard for facilities of up to 20 megawatts

The Commission shall establish a model standard for the interconnection of small power production facilities with a capacity greater than 15 kilowatts, but not greater than 20 megawatts, for the consideration of State regulatory authorities under section 111(d)(15).

.

(2)

Conforming amendment

The table of contents in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is amended by adding at the end of the items relating to subtitle B of title I the following:

Sec. 118. Interconnection of certain small power production facilities.

.

III

Improved energy security

A

Cyber security of the electric transmission grid

301.

Critical electric infrastructure

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following:

224.

Critical electric infrastructure

(a)

Definitions

In this section:

(1)

Critical electric infrastructure

The term critical electric infrastructure means systems and assets, whether physical or virtual, used for the generation, transmission, or distribution of electric energy affecting interstate commerce that, as determined by the Commission or the Secretary (as appropriate), are so vital to the United States that the incapacity or destruction of the systems and assets would have a debilitating impact on national security, national economic security, or national public health or safety.

(2)

Critical electric infrastructure information

The term critical electric infrastructure information means critical infrastructure information relating to critical electric infrastructure.

(3)

Critical infrastructure information

The term critical infrastructure information has the meaning given the term in section 212 of the Critical Infrastructure Information Act of 2002 (6 U.S.C. 131).

(4)

Cyber security threat

The term cyber security threat means the imminent danger of an act that disrupts, attempts to disrupt, or poses a significant risk of disrupting the operation of programmable electronic devices or communications networks (including hardware, software, and data) essential to the reliable operation of critical electric infrastructure.

(5)

Cyber security vulnerability

The term cyber security vulnerability means a weakness or flaw in the design or operation of any programmable electronic device or communication network that exposes critical electric infrastructure to a cyber security threat.

(6)

Secretary

The term Secretary means the Secretary of Energy.

(b)

Authority of Commission

(1)

In general

The Commission shall issue such rules or orders as are necessary to protect critical electric infrastructure from cyber security vulnerabilities.

(2)

Expedited procedures

The Commission may issue a rule or order without prior notice or hearing if the Commission determines the rule or order must be issued immediately to protect critical electric infrastructure from a cyber security vulnerability.

(3)

Consultation

Before issuing a rule or order under paragraph (2), to the extent practicable, taking into account the nature of the threat and urgency of need for action, the Commission shall consult with the entities described in subsection (e)(1) and with officials at other Federal agencies, as appropriate, regarding implementation of actions that will effectively address the identified cyber security vulnerabilities.

(4)

Termination of rules or orders

A rule or order issued to address a cyber security vulnerability under this subsection shall expire on the effective date of a standard developed and approved pursuant to section 215 to address the cyber security vulnerability.

(c)

Emergency authority of Secretary

(1)

In general

If the Secretary determines that immediate action is necessary to protect critical electric infrastructure from a cyber security threat, the Secretary may require, by order, with or without notice, persons subject to the jurisdiction of the Commission under this section to take such actions as the Secretary determines will best avert or mitigate the cyber security threat.

(2)

Coordination with Canada and Mexico

In exercising the authority granted under this subsection, the Secretary is encouraged to consult and coordinate with the appropriate officials in Canada and Mexico responsible for the protection of cyber security of the interconnected North American electricity grid.

(3)

Consultation

Before exercising the authority granted under this subsection, to the extent practicable, taking into account the nature of the threat and urgency of need for action, the Secretary shall consult with the entities described in subsection (e)(1) and with officials at other Federal agencies, as appropriate, regarding implementation of actions that will effectively address the identified cyber security threat.

(4)

Cost recovery

The Commission shall establish a mechanism that permits public utilities to recover prudently incurred costs required to implement immediate actions ordered by the Secretary under this subsection.

(d)

Duration of expedited or emergency rules or orders

Any rule or order issued by the Commission without prior notice or hearing under subsection (b)(2) or any order issued by the Secretary under subsection (c) shall remain effective for not more than 90 days unless, during the 90 day-period, the Commission—

(1)

gives interested persons an opportunity to submit written data, views, or arguments (with or without opportunity for oral presentation); and

(2)

affirms, amends, or repeals the rule or order.

(e)

Jurisdiction

(1)

In general

Notwithstanding section 201, this section shall apply to any entity that owns, controls, or operates critical electric infrastructure.

(2)

Covered entities

(A)

In general

An entity described in paragraph (1) shall be subject to the jurisdiction of the Commission for purposes of—

(i)

carrying out this section; and

(ii)

applying the enforcement authorities of this Act with respect to this section.

(B)

Jurisdiction

This subsection shall not make an electric utility or any other entity subject to the jurisdiction of the Commission for any other purpose.

(3)

Alaska and Hawaii excluded

Except as provided in subsection (f), nothing in this section shall apply in the State of Alaska or Hawaii.

(f)

Defense facilities

Not later than 1 year after the date of enactment of this section, the Secretary of Defense shall prepare, in consultation with the Secretary, the States of Alaska and Hawaii, the Territory of Guam, and the electric utilities that serve national defense facilities in those States and Territory, a comprehensive plan that identifies the emergency measures or actions that will be taken to protect the reliability of the electric power supply of the national defense facilities located in those States and Territory in the event of an imminent cybersecurity threat.

(g)

Protection of critical electric infrastructure information

(1)

In general

Section 214 of the Critical Infrastructure Information Act of 2002 (6 U.S.C. 133) shall apply to critical electric infrastructure information submitted to the Commission or the Secretary under this section to the same extent as that section applies to critical infrastructure information voluntarily submitted to the Department of Homeland Security under that Act (6 U.S.C. 131 et seq.).

(2)

Rules prohibiting disclosure

Notwithstanding section 552 of title 5, United States Code, the Secretary and the Commission shall prescribe regulations prohibiting disclosure of information obtained or developed in ensuring cyber security under this section if the Secretary or Commission, as appropriate, decides disclosing the information would be detrimental to the security of critical electric infrastructure.

(3)

Procedures for sharing information

(A)

In general

The Secretary and the Commission shall establish procedures on the release of critical infrastructure information to entities subject to this section, to the extent necessary to enable the entities to implement rules or orders of the Commission or the Secretary.

(B)

Requirements

The procedures shall—

(i)

limit the redissemination of information described in subparagraph (A) to ensure that the information is not used for an unauthorized purpose;

(ii)

ensure the security and confidentiality of the information;

(iii)

protect the constitutional and statutory rights of any individuals who are subjects of the information; and

(iv)

provide data integrity through the timely removal and destruction of obsolete or erroneous names and information.

.

B

Nuclear energy

311.

National Commission on Nuclear Waste

The Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101 et seq.) is amended by adding at the end the following:

VI

National Commission on Nuclear Waste

601.

Establishment of Commission

There is established a Federal advisory committee to be known as the National Commission on Nuclear Waste (referred to in this title as the National Commission).

602.

Purposes

The purposes of the National Commission are—

(1)

to conduct a comprehensive study of alternative means of safely managing or disposing of spent nuclear fuel and high-level radioactive waste from civilian nuclear activity and atomic energy defense activity; and

(2)