HR 2809 IH
110th CONGRESS
1st Session
H. R. 2809
To ensure that the United States leads the world baseline in
developing and manufacturing next generation energy technologies, to grow the
economy of the United States, to create new highly trained, highly skilled
American jobs, to eliminate American overdependence on foreign oil, and to
address the threat of global warming.
IN THE HOUSE OF REPRESENTATIVES
June 21, 2007
Mr. INSLEE (for himself, Mr. VAN HOLLEN, Mr. LANGEVIN, Mr. HONDA, Mr. SMITH
of Washington, Mr. SCHIFF, Mr. DELAHUNT, Mr. ELLISON, Ms. BALDWIN, Mr. HINCHEY,
Mr. FATTAH, Mr. ISRAEL, Mr. JEFFERSON, Mr. EMANUEL, Mr. DAVIS of Illinois, Ms.
LEE, Mr. SHAYS, and Mr. WEINER) introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to the
Committees on Rules, Ways and Means, Education and Labor, Foreign Affairs,
Judiciary, Financial Services, Science and Technology, Oversight and Government
Reform, Natural Resources, Agriculture, and the Budget, for a period to be
subsequently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To ensure that the United States leads the world baseline in
developing and manufacturing next generation energy technologies, to grow the
economy of the United States, to create new highly trained, highly skilled
American jobs, to eliminate American overdependence on foreign oil, and to
address the threat of global warming.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `New Apollo Energy Act of
2007'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FINDINGS AND PERFORMANCE GOALS
Sec. 102. Performance goals.
TITLE II--EFFICIENCY
Subtitle A--Green Buildings
Sec. 204. Coordinating agency.
Sec. 205. Public education and training.
Sec. 206. Blue ribbon panel.
Sec. 207. Research and development report.
Sec. 208. Greenhouse gas emission standards.
Sec. 209. Study of use of FHA energy efficient mortgage program.
Sec. 210. Healthy, high-performance schools.
Sec. 211. Loan guarantees for public institutions of higher
education.
Sec. 212. Accountability of Federal agencies.
Sec. 213. State and local government block grants.
Sec. 214. Authorization of appropriations.
Sec. 215. Increase and extension of energy efficient commercial
buildings deduction.
Subtitle B--Consumer Assistance
Sec. 221. Appliance standards.
Sec. 222. Energy Star certification for solar water heaters and tankless
water heaters.
Subtitle C--Tax Provision
Sec. 231. Energy credit for combined heat and power system
property.
TITLE III--TRANSPORTATION SECTOR
Sec. 301. Performance goals.
Subtitle A--Plug-In Hybrid Electric Vehicles
Sec. 313. Research and development grants.
Sec. 317. Plug-in hybrid motor vehicle tax credit.
Subtitle B--Increase Ridership of Public Transportation
Sec. 321. Increased uniform dollar limitation for all types of
transportation fringe benefits.
Sec. 322. Credit for employer costs of providing certain mass
transportation fringe benefits to their employees.
Sec. 323. Clarification of Federal employee benefits.
Sec. 324. Extension of transportation fringe benefit to bicycle
commuters.
Subtitle C--Emissions Reductions and Oil Savings
Chapter 1--Biofuels Security
subchapter a--renewable fuels
Sec. 341. Renewable fuel program.
Sec. 342. Installation of e-85 fuel pumps by major oil companies at
owned stations and branded stations.
Sec. 343. Minimum Federal fleet requirement.
Sec. 344. Application of Gasohol Competition Act of 1980.
subchapter b--dual fueled automobiles
Sec. 351. Requirement to manufacture dual fueled automobiles.
Sec. 352. Manufacturing incentives for dual fueled automobiles.
Chapter 2--Emissions Reductions
Sec. 361. Extension of biodiesel tax credits.
Sec. 362. Low carbon fuel standard.
Sec. 363. Loan guarantee program to demonstrate low carbon renewable
fuel.
Sec. 364. Require automakers to reduce tailpipe GHG emissions.
Sec. 365. Elimination of 2-FLEET rule.
TITLE IV--ELECTRICITY SECTOR
Subtitle A--Tax Incentives
Sec. 401. Extension through 2018 for placing qualified facilities in
service for producing renewable electric energy.
Sec. 402. Extension of energy credit.
Sec. 403. Expansion and modification of renewable resource credit.
Sec. 404. Energy credit for small wind, small geothermal, small biomass,
and small kinetic hydropower.
Sec. 405. Modifications for clean renewable energy bonds.
Sec. 406. Expansion and increase for residential energy efficient
property credit.
Sec. 407. Expansion of renewable resource credit to include thermal
energy.
Subtitle B--Promoting Energy Efficient Investments
Sec. 411. Rate modifications promoting energy efficiency
investments.
Sec. 412. Feed-in tariff system study.
Subtitle C--National Renewable Energy Zones
Sec. 421. New electricity transmission lines designed primarily to carry
electricity from renewable energy resources.
Sec. 424. National renewable energy zones.
Sec. 425. Federal Power Marketing Administrations and TVA.
Sec. 426. Consistency with environmental laws.
Subtitle D--Net Metering
Sec. 431. Establishing minimum net metering and interconnection
standards.
Sec. 432. Retail electric and gas utility efficiency policies.
Subtitle E--Renewable Portfolio Standard
Sec. 441. Renewable portfolio standard.
Subtitle F--Marine and Hydrokinetic Renewable Energy Promotion
Sec. 453. Research and development.
Sec. 454. Adaptive Management and Environmental Fund.
Sec. 455. Programmatic environmental impact statement.
Subtitle G--Carbon Capture and Sequestration
Sec. 461. Carbon capture and storage research, development, and
demonstration program.
TITLE V--GREEN WORKFORCE
Subtitle A--Small Manufacturer Assistance
Sec. 501. Small manufacturer assistance through Hollings Manufacturing
Extension Partnership Program.
Subtitle B--Green Workforce Education Incentives
Sec. 511. National Green Certification Standards.
Sec. 512. Environmentally literate workforce grant program.
Sec. 513. Carbon neutrality grants in institutions of higher
educations.
Sec. 514. National green ranking system grant.
Sec. 515. Green building and zero-energy home design training
grants.
Sec. 516. Student loan forgiveness for green workforce members.
TITLE VI--FEDERAL GOVERNMENT LEVERAGE TO MOVE NEW TECHNOLOGIES TO
MARKET
Subtitle A--Incentives for Clean Energy Technology
Sec. 601. New Energy Technologies Commission.
Sec. 602. Loan Guarantees Program.
Sec. 603. Grant Program to Create Clean Energy Business Districts.
Subtitle B--Clean Energy Exports and International Investment
Sec. 611. Clean energy technology exports program.
Sec. 612. International energy technology deployment program.
Subtitle C--Export-Import Bank
Sec. 621. Require the Export-Import Bank of the United States to meet
renewable energy targets in its lending practices.
Sec. 622. Increase in the amount of financing made available by the
Export-Import Bank for transactions involving renewable energy and energy
efficiency.
Sec. 623. Office of renewable energy promotion.
Sec. 624. Report on Export-Import Bank financing for transactions
involving renewable energy or energy efficiency.
Sec. 625. Report on effect of Export-Import Bank financing on greenhouse
gas emissions.
Subtitle D--Emerging Clean Energy Technology Venture Capital Fund
Sec. 632. Establishment of fund.
Sec. 633. Authorization of appropriations.
TITLE VII--GREENHOUSE GAS REDUCTIONS
Subtitle A--Global Climate Change
Sec. 701. Global climate change.
Subtitle B--Climate Change Research Initiatives
Sec. 711. Research grants through National Science Foundation.
Sec. 712. Abrupt climate change research.
Sec. 713. Development of new measurement technologies.
Sec. 714. Technology development and diffusion.
Sec. 716. Sea level rise from polar ice sheet melting.
TITLE VIII--OFFSETS
Subtitle A--Denial of Oil and Gas Tax Benefits
Sec. 802. Denial of deduction for income attributable to domestic
production of oil, natural gas, or primary products thereof.
Sec. 803. 7-year amortization of geological and geophysical expenditures
for certain major integrated oil companies.
Subtitle B--Royalties Under Offshore Oil and Gas Leases
Sec. 812. Price thresholds for royalty suspension provisions.
Sec. 813. Clarification of authority to impose price thresholds for
certain lease sales.
Sec. 814. Eligibility for new leases and the transfer of leases;
conservation of resources fees.
Sec. 815. Repeal of certain taxpayer subsidized royalty relief for the
oil and gas industry.
Subtitle C--Strategic Energy Efficiency and Renewable Reserve
Sec. 821. Strategic Energy Efficiency and Renewables Reserve for
investments in renewable energy and energy efficiency.
TITLE I--FINDINGS AND PERFORMANCE GOALS
SEC. 101. FINDINGS.
Congress finds the following:
(1) A bold new national energy plan can lead to a surge of investment
in, development of, and deployment of clean energy and energy efficient
technologies that would result in the creation of millions of highly-trained
manufacturing and technical jobs throughout the United States economy.
(2) Climate change, national security and energy dependence are a
related set of global challenges.
(3) The United States currently relies on oil for over 95 percent of its
transportation fuel needs.
(4) The United States currently imports 60 percent of the oil it
consumes and consumes about one fourth of the world's daily oil
production.
(5) A major portion of the world's oil supply is controlled by unstable
governments and countries that are known to finance, harbor, or otherwise
support terrorism and terrorist activities.
(6) Since World War II, the United States has made significant
expenditures of American taxpayer dollars in attempts to stabilize
governments and protect United States interests in the Middle East.
(7) Countries such as Japan, Germany, Denmark, and Great Britain lead
the United States in manufacturing alternative energy technologies that both
decrease reliance on fossil fuels and do not contribute to global
warming.
(8) The United States has led the world in the development of a wide
array of technological advances and is now poised to lead the world, using
its unique national genius for innovation, in the development of a host of
new energy technologies.
(9) Development of renewable energy resources in the United States
offers a substantial opportunity for economic development in rural,
agriculture-dependent areas.
(10) Human activities have caused rapid increases in atmospheric
concentrations of carbon dioxide and other greenhouse gases in the last
century.
(11) According to the Intergovernmental Panel on Climate Change and the
National Research Council--
(A) the earth has warmed in the last century; and
(B) the majority of the observed warming is attributable to human
activities, including fossil fuel-generated carbon dioxide
emissions.
(12) To avoid catastrophic global warming, the United States should take
decisive action with other nations to reduce greenhouse gas emissions by 80
percent by 2050.
(13) Projected climate change poses a serious threat to United States
national security.
(14) Projected climate change will add to tensions even in stable
regions of the world.
SEC. 102. PERFORMANCE GOALS.
In order to ensure that the national energy policy of the United States is
the most effective policy for protecting national and homeland security,
expanding our economy and creating jobs, addressing global warming and
environmental health concerns, and protecting the interests of United States
consumers, Congress establishes the New Apollo Energy Act Performance Goals,
which the President shall consider when formulating and enforcing national
energy policy. These goals are as follows:
(1) Reduce the projected demand for gasoline in the United States by at
least 70 billion gallons annually by 2030.
(2) Create and retain 3,000,000 new highly skilled, high-wage jobs in
the United States by 2015.
(3) Meet 10 percent of the country's electricity needs from electricity
generated from renewable resources by 2012, and meet 20 percent of the
country's electricity needs from electricity generated from renewable
resources by 2020.
(4) Lower energy costs for consumers by meeting at least 10 percent of
projected electricity demand and 5 percent of natural gas demand by 2020
through increased conservation and improved energy efficiency.
(5) Freeze U.S. greenhouse gas emissions in 2010, at 2009 levels.
Beginning in 2011, cuts emissions to achieve 1990 emissions levels by 2020.
After 2020, cut emissions each year to reach 80 percent below 1990 levels by
2050.
(6) Encourage domestic manufacturing and production of new energy and
energy efficient technologies.
(7) Require that 100 percent of all domestically manufactured
automobiles be duel-fueled vehicles by 2017.
(8) Increase the Federal fleet requirement to 100 percent duel-fueled or
plug-in hybrid vehicles by 2008.
(9) Redevelop and enhance existing industrial facilities in areas of the
country adversely impacted by manufacturing job losses.
(10) Promote rural economic development.
TITLE II--EFFICIENCY
Subtitle A--Green Buildings
SEC. 201. SHORT TITLE.
This Act may be cited as the `Advanced Design in Energy for Living
Efficiently Act of 2007'.
SEC. 202. FINDINGS.
The Congress finds that--
(1) green building design practices have a positive effect on the
reduction of greenhouse gases, the health of the environment, increases in
production of workers, and improved water supply for communities;
(2) buildings account for 38 percent of carbon dioxide emissions per
year;
(3) buildings consume approximately 40 percent of the energy and 70
percent of the electricity in the United States per year;
(4) an up-front investment of 2 percent in green building design, on
average, results in life cycle savings of 20 percent of the total operation
costs of a building;
(5) case studies show examples of a 2 to 16 percent increase in
productivity in buildings that incorporate green building design;
(6) students with the most daylight in their classrooms progressed 20
percent faster on mathematics tests and 26 percent faster on reading tests
in one year than those with the least day lighting;
(7) the development of a research agenda for green building design must
consider whole building performance, and such development should be founded
on achievable and measurable performance goals;
(8) the tools and knowledge are currently available to meet the goals of
this Act; and
(9) green building design is a national priority, and can reduce the
long-term operating costs for individuals and enhance their ability to repay
the mortgage.
SEC. 203. DEFINITIONS.
For purposes of this Act--
(1) the term `Administrator' means the Administrator of the
Environmental Protection Agency;
(2) the term `green building' means a building that uses sustainable
design principles to reduce the use of nonrenewable resources, minimize
environmental impact, and relate people with the natural environment;
(3) the term `institution of higher education' has the meaning given
that term in section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001); and
(4) the term `State' means one of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or
any other commonwealth, territory, or possession of the United States.
SEC. 204. COORDINATING AGENCY.
(a) In General- The Administrator shall serve as the coordinating agency
for Federal information on green building design and practices, including
information regarding construction, use, and decommissioning of green
buildings, and shall obtain from all Federal agencies any information relating
thereto that is not protected from disclosure by law.
(b) Availability of Information- The Administrator, in consultation with
the National Institute of Building Sciences, shall make the information
obtained under subsection (a) readily available to the building industry and
consumers.
SEC. 205. PUBLIC EDUCATION AND TRAINING.
(a) In General- The Administrator, in coordination with the National
Institute of Building Sciences and in conjunction with private-sector
building-related entities, shall establish a program to create and distribute
informational materials to increase the knowledge of the general public about
green building design principles.
(b) Green Building Training- Not later than 6 months after the date of
enactment of this Act, the Administrator, working through a grant to the
United States Green Building Council, shall provide for the establishment of
criteria for appropriate education and training of architects, engineers, and
developers in green building design and application.
SEC. 206. BLUE RIBBON PANEL.
(a) Establishment- The National Institute of Building Sciences shall
establish a blue ribbon panel to provide independent advice and counsel to the
Administrator on policy issues associated with the conservation of energy in
residential, commercial, and Federal buildings, green building design systems,
the health of the indoor environment, and reduction of water use and waste
output.
(b) Appointment- The blue ribbon panel shall be appointed by the Board of
Directors of the National Institute of Building Sciences. Appointees shall
represent all sectors that are knowledgeable about or affected by green
buildings, including architects, professional engineers, government officials,
representatives of consumer organizations, representatives of construction
labor organizations, product manufacturers, builders, housing management
experts, and experts in building standards, codes, research, testing, and fire
safety.
(c) Report to Congress- Not later than 1 year after the date of enactment
of this Act, the blue ribbon panel shall report to Congress on the results of
study to determine best practices for quantifying the information necessary to
make informed property investment decisions, including with respect to
buildings that meet carbon-neutral emission standards and use green building
design practices.
SEC. 207. RESEARCH AND DEVELOPMENT REPORT.
Not later than 6 months after the date of enactment of this Act, the
National Institute of Building Sciences shall report to Congress on the
estimated amount of funding necessary for research and development on green
building design in the United States. Such report shall include
recommendations on further policies needed to promote green building
design.
SEC. 208. GREENHOUSE GAS EMISSION STANDARDS.
(a) Establishment- Not later than 1 year after the date of enactment of
this Act, the National Institute of Building Sciences shall establish
standards for the construction of new commercial and residential buildings
that will reduce carbon emissions, compared to emissions from similar
buildings in 2003, by--
(1) 40 percent by 2010; and
(1) REQUIREMENT- Not later than 6 years after the date of enactment of
this Act, each State shall demonstrate to the satisfaction of the
Administrator that--
(A) such State (and all of the local jurisdictions within such State)
has--
(i) adopted the standards established under subsection (a);
and
(ii) fully implemented such standards; or
(B) technical barriers exist that prevent such adoption and
implementation.
(2) SUPPORTING INFORMATION- In order to make a demonstration to the
Administrator under paragraph (1), a State shall receive, and submit to the
Administrator, reports from all local jurisdictions in the State on how many
building permits were issued each year and how many of these permits met the
standards established under subsection (a).
SEC. 209. STUDY OF USE OF FHA ENERGY EFFICIENT MORTGAGE PROGRAM.
(a) Study- The Comptroller General of the United States shall conduct a
study of the program of the Secretary of Housing and Urban Development for
energy efficient mortgages insured under title II of the National Housing Act,
established and operated pursuant to section 106 of the Energy Policy Act of
1992 (42 U.S.C. 12712 note) and expanded in 1995 pursuant to subsection (b) of
such section, to determine--
(1) the extent to which such program is utilized by mortgagors in the
United States;
(2) any impediments to wider or more efficient use of such program,
including any such impediments relating to--
(A) knowledge of or about the program; and
(B) the terms, limitations, or operation of the program;
(3) effective actions which may be taken to increase utilization of the
program by mortgagors in the United States.
(b) Report- Not later than the expiration of the 6-month period beginning
on the date of the enactment of this Act, the Comptroller General shall submit
to the Congress a report describing the findings of the study pursuant to
subsection (a) and setting forth recommendations for actions under subsection
(a)(3).
SEC. 210. HEALTHY, HIGH-PERFORMANCE SCHOOLS.
(a) Grant Program Authorized- The Administrator of the Environmental
Protection Agency, acting through the National Institute of Building Sciences,
in consultation with the Secretary of Energy and the Secretary of Education,
is authorized to award grants to State educational agencies to permit such
State educational agencies to carry out this section.
(1) IN GENERAL- A State educational agency receiving a grant under this
section shall use funds made available under the grant to award subgrants to
local educational agencies to permit such local educational agencies to
carry out the activities described in subsection (e).
(2) LIMITATION- A State educational agency shall award subgrants under
this subsection to local educational agencies that are the neediest, as
determined by the State, and that have made a commitment to develop healthy,
high-performance school buildings in accordance with the plan developed and
approved under subsection (c)(1).
(1) PLANS- A State educational agency shall award subgrants under this
section only to local educational agencies that, in consultation with the
State educational agency and State agencies with responsibilities relating
to energy and health, have developed plans that the State educational agency
determines to be feasible and appropriate in order to achieve the purposes
for which the subgrants are made.
(2) SUPPLEMENTING GRANT FUNDS- The State educational agency shall
encourage local educational agencies that receive subgrants under this
section to supplement their subgrant funds with funds from other sources in
order to implement their plans.
(d) Administration- A State educational agency receiving a grant under
this section shall use the grant funds made available under this section for
one or more of the following:
(1) To evaluate compliance by local educational agencies with the
requirements of this section.
(2) To distribute information and materials on healthy, high-performance
school buildings for both new and existing facilities.
(3) To organize and conduct programs for school board members, school
district personnel, and others to disseminate information on healthy,
high-performance school buildings.
(4) To provide technical services and assistance in planning and
designing healthy, high-performance school buildings.
(5) To collect and monitor information pertaining to healthy,
high-performance school building projects.
(1) IN GENERAL- A local educational agency that receives a subgrant
under this section shall use the subgrant funds to plan and prepare for
healthy, high-performance school building projects that--
(A) reduce energy use to at least 30 percent below that of a school
constructed in compliance with standards prescribed in chapter 8 of the
2000 International Energy Conservation Code, or a similar State code
intended to achieve substantially equivalent results;
(B) meet Federal and State health and safety codes; and
(C) support healthful, energy efficient, and environmentally sound
practices.
(2) USE OF FUNDS- A local educational agency that receives a subgrant
under this section shall use funds for one or more of the following:
(A) To develop a comprehensive energy audit of the energy consumption
characteristics of a building and the need for additional energy
conservation measures necessary to allow schools to meet the guidelines
set out in paragraph (1).
(B) To produce a comprehensive analysis of building strategies,
designs, materials, and equipment that--
(i) are cost effective, produce greater energy efficiency, and
enhance indoor air quality; and
(ii) can be used when conducting school construction and renovation
or purchasing materials and equipment.
(C) To obtain research and provide technical services and assistance
in planning and designing healthy, high-performance school buildings,
including developing a timeline for implementation of such plans.
(f) Information and Assistance- The Administrator of the Environmental
Protection Agency, acting through the National Institute of Building Sciences,
shall provide information and assistance to local educational agencies on
sustainable design. The information and assistance shall include--
(1) information on how benefits of sustainable design can benefit life
cycle costs to all school districts at no cost to school districts;
and
(2) assistance on how to create curriculum for environmental science
classes to study local effects of sustainable design.
(g) Report to Congress- The Administrator shall conduct a biennial review
of State actions implementing this section and carrying out the plans
developed under this section through State and local funding, and shall submit
a report to Congress on the results of such reviews.
(h) Limitations- No funds received under this section may be used for any
of the following:
(1) Payment of maintenance of costs in connection with any projects
constructed in whole or in part with Federal funds provided under this
section.
(2) Construction, renovation, or repair of school facilities.
(3) Construction, renovation, repair, or acquisition of a stadium or
other facility primarily used for athletic contests or exhibitions, or other
events for which admission is charged to the general public.
(i) Definitions- In this section:
(1) The term `healthy, high-performance school building' means a school
building in which the design, construction, operation, and
maintenance--
(A) use energy-efficient and affordable practices and
materials;
(C) enhance indoor air quality; and
(D) protect and conserve water.
(2) The terms `local educational agency' and `State educational agency'
have the meaning given those terms in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(j) Conforming Repeal- Subpart 18 (20 U.S.C. 7277 et seq.) of part D of
title V of the Elementary and Secondary Education Act of 1965 is repealed.
SEC. 211. LOAN GUARANTEES FOR PUBLIC INSTITUTIONS OF HIGHER EDUCATION.
(a) Program- The Administrator shall establish a program to make loan
guarantees available to public institutions of higher education in a State for
the construction or renovation of permanent buildings that meet the standards
established under section 8(a).
(b) Qualifications- The Administrator shall establish the qualifications
necessary for an institution to be eligible for a loan guarantee under this
section, including qualifications to protect the financial interests of the
Federal Government.
(c) Approval- The Administrator shall approve or disapprove an application
for a loan guarantee under this section not later than 30 days after receiving
a completed application.
(d) Authorization of Appropriations- There are authorized to be
appropriated to the Administrator such sums as may be necessary to carry out
this section.
SEC. 212. ACCOUNTABILITY OF FEDERAL AGENCIES.
(a) Agency Actions- Each Federal agency shall--
(1) increase the energy efficiency of its facilities and
operations;
(2) annually transmit to the President and the Congress a report on the
energy efficiency increases and carbon emission reductions associated with
its facilities and operation; and
(3) reward agency employees who make significant contributions to the
reduction of agency carbon emissions.
(b) Energy Manager Training- The energy manager, designated under section
304 of Executive Order No. 13123, of each Federal agency shall be required to
receive training approved by the Administrator on green building design,
construction, use, and decommissioning, and to receive an annual refresher
course approved by the Administrator on those subjects.
(c) Energy Efficiency Budget Report- Not later than 6 months after the
date of enactment of this Act, the Comptroller General shall transmit to the
Congress a report comparing the energy efficiency budget request by the
President for each Federal agency for fiscal years 2006 and 2007 with the
requests from the agency to the President for energy efficiency budget amounts
for those fiscal years.
SEC. 213. STATE AND LOCAL GOVERNMENT BLOCK GRANTS.
(a) In General- The Administrator shall make block grants to State and
local governments. Such grants may be used for--
(1) the renovation of existing buildings to achieve the standards
established by the National Institute of Building Sciences under section
8(a);
(2) redesigning existing plans for new buildings to enable those plans
to meet such standards;
(3) research and development of technologies to enable and support green
building design and the achievement of such standards; and
(4) public education and training, including training for homeowners,
business owners, first time home buyers, and contractors, on green buildings
and their construction, use, and decommissioning.
(b) Mandatory Use- All block grants received under this section shall be
used, at least in part, for the purpose described in subsection (a)(4).
(c) Eligibility- No State or local government may receive a block grant
under this section unless it demonstrates to the satisfaction of the
Administrator that--
(1) the State or local government (and in the case of a State, all the
local jurisdictions within the State) has--
(A) adopted the standards established under section 8(a); and
(B) fully implemented such standards; or
(2) technical barriers exist that prevent such adoption and
implementation.
(d) Research and Development Coordination- The Administrator shall monitor
activities described in subsection (a)(3) to prevent unnecessary duplication
of research and development efforts.
(e) Authorization of Appropriations- There are authorized to be
appropriated to the Administrator for making grants under this section
$1,000,000,000 for the period encompassing fiscal years 2009 through 2018.
SEC. 214. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator for carrying
out this Act, other than sections 11 and 13 $50,000,000 for each of the fiscal
years 2009 through 2013.
SEC. 215. INCREASE AND EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
(a) Increase- Section 179D of the Internal Revenue Code of 1986 (relating
to energy efficient commercial buildings deduction) is amended--
(1) in subsection (b)(1)(A) by striking `$1.80' and inserting `$2.25',
and
(2) in subsection (d)(1)(A) by striking `by substituting' and all that
follows through the period at the end and inserting `by substituting `$.75'
for `$2.25'.'.
(b) Extension- Subsection (h) of section 179D of such Code (relating to
termination) is amended by striking `December 31, 2008' and inserting
`December 31, 2013'.
(c) Effective Date- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
Subtitle B--Consumer Assistance
SEC. 221. APPLIANCE STANDARDS.
(a) Consumer Appliance Requirement- Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by adding at the end the
following new subsection:
`(1) REQUIREMENT- Except as provided in paragraph (2), any final rule
adopted after July 1, 2012, to set a new or revised energy efficiency
standard for a covered product shall specify that a covered product
manufactured on or after the effective date of such new or revised standard
shall, when in standby mode, operate with not more than 1 watt of electric
power.
`(A) EXTENSIONS- The Secretary may provide a single extension of up to
2 years for compliance with paragraph (1) with respect to a covered
product if the Secretary finds that such extension is
appropriate.
`(B) EXEMPTIONS- The Secretary may provide an exemption from the
requirement under paragraph (1) for a covered product, after public notice
and opportunity for comment, if the Secretary finds that--
`(i) achieving the requirement is not technologically feasible and
economically justified for that covered product; or
`(ii) such an exemption is warranted for medical or military
reasons.
Any exemption provided under this subparagraph shall be reviewed at
least once every 5 years.'.
(b) Consumer Appliance 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 new paragraph:
`(17) Not later than July 1, 2009, the Secretary shall issue a final rule
establishing test procedures for standby power consumption for all covered
products, except for products for which the current test procedure already
measures standby power consumption.'.
(1) IN GENERAL- Section 325(u) of the Energy Policy and Conservation Act
(42 U.S.C. 6295(u)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) through (5) as paragraphs (2)
through (4), respectively.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take
effect on the date described in section 325(ii)(I) of the Energy Policy and
Conservation Act as, added by subsection (a) of this section.
(d) Industrial Equipment Requirement- Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the
following new subsection:
`(1) REQUIREMENT- Except as provided in paragraph (2), any final rule
adopted after July 1, 2012, to set a new or revised energy efficiency
standard for covered equipment shall specify that covered equipment
manufactured on or after the effective date of such new or revised standard
shall, when in standby mode, operate with not more than 1 watt of electric
power.
`(A) EXTENSIONS- The Secretary may provide a single extension of up to
5 years for compliance with paragraph (1) with respect to a covered
equipment if the Secretary finds that such extension is
appropriate.
`(B) EXEMPTIONS- The Secretary may provide an exemption from the
requirement under paragraph (1) for covered equipment, after public notice
and opportunity for comment, if the Secretary finds that--
`(i) achieving the requirement is not technologically feasible and
economically justified for that covered equipment; or
`(ii) such an exemption is warranted for medical or military
reasons.
Any exemption provided under this subparagraph shall be reviewed at
least once every 5 years.'.
(e) Industrial Equipment Test Procedures- Section 343(a) of the Energy
Policy and Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the
end the following new paragraph:
`(9) Not later than July 1, 2009, the Secretary shall issue a final rule
establishing test procedures for standby power consumption for all covered
equipment, except for equipment for which the current test procedure already
measures standby power consumption.'.
SEC. 222. ENERGY STAR CERTIFICATION FOR SOLAR WATER HEATERS AND TANKLESS
WATER HEATERS.
Not later than January 1, 2009, the Secretary of Energy, in consultation
with the Administrator of the Environmental Protection Agency, shall adopt
regulations establishing Energy Star Program requirements and an Energy Star
rating program for commercial and residential solar water heating devices and
tankless water heating devices.
Subtitle C--Tax Provision
SEC. 231. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.
(a) In General- Section 48(a)(3)(A) of the Internal Revenue Code of 1986
(defining energy property) is by striking `or' at the end of clause (iii), by
inserting `or' at the end of clause (iv), and by adding at the end the
following new clause:
`(v) combined heat and power system property,'.
(b) Combined Heat and Power System Property- Section 48 of such Code
(relating to energy credit) is amended by adding at the end the following new
subsection:
`(d) Combined Heat and Power System Property- For purposes of subsection
(a)--
`(1) COMBINED HEAT AND POWER SYSTEM PROPERTY- The term `combined heat
and power system property' means property comprising a system--
`(A) which uses the same energy source for the simultaneous or
sequential generation of electrical power, mechanical shaft power, or
both, in combination with the generation of steam or other forms of useful
thermal energy (including heating and cooling applications),
`(B) which has an electrical capacity of not more than 50 megawatts or
a mechanical energy capacity of not more than 67,000 horsepower or an
equivalent combination of electrical and mechanical energy
capacities,
`(i) at least 20 percent of its total useful energy in the form of
thermal energy which is not used to produce electrical or mechanical
power (or combination thereof), and
`(ii) at least 20 percent of its total useful energy in the form of
electrical or mechanical power (or combination thereof),
`(D) the energy efficiency percentage of which exceeds 60 percent,
and
`(E) which is placed in service before January 1, 2011.
`(A) ENERGY EFFICIENCY PERCENTAGE- For purposes of this subsection,
the energy efficiency percentage of a system is the fraction--
`(i) the numerator of which is the total useful electrical, thermal,
and mechanical power produced by the system at normal operating rates,
and expected to be consumed in its normal application, and
`(ii) the denominator of which is the higher heating value of the
primary fuel sources for the system.
`(B) DETERMINATIONS MADE ON BTU BASIS- The energy efficiency
percentage and the percentages under paragraph (1)(C) shall be determined
on a Btu basis.
`(C) INPUT AND OUTPUT PROPERTY NOT INCLUDED- The term `combined heat
and power system property' does not include property used to transport the
energy source to the facility or to distribute energy produced by the
facility.
`(D) CERTAIN EXCEPTION NOT TO APPLY- The first sentence of the matter
in subsection (a)(3) which follows subparagraph (D) thereof shall not
apply to combined heat and power system property.
`(3) SYSTEMS USING BAGASSE- If a system is designed to use bagasse for
at least 90 percent of the energy source--
`(A) paragraph (1)(D) shall not apply, but
`(B) the amount of credit determined under subsection (a) with respect
to such system shall not exceed the amount which bears the same ratio to
such amount of credit (determined without regard to this subparagraph) as
the energy efficiency percentage of such system bears to 60
percent.
`(4) NONAPPLICATION OF CERTAIN RULES- For purposes of determining if the
term `combined heat and power system property' includes technologies which
generate electricity or mechanical power using back-pressure steam turbines
in place of existing pressure-reducing valves or which make use of waste
heat from industrial processes such as by using organic rankine, stirling,
or kalina heat engine systems, paragraph (1) shall be applied without regard
to subparagraphs (C) and (D) thereof .'.
(c) Effective Date- The amendments made by this section shall apply to
periods after December 31, 2007, in taxable years ending after such date,
under rules similar to the rules of section 48(m) of the Internal Revenue Code
of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
TITLE III--TRANSPORTATION SECTOR
SEC. 301. PERFORMANCE GOALS.
Congress finds this title will:
(1) Reduce greenhouse gas emissions from the use of motor vehicles by 22
percent below currently projected levels.
(2) Prevent 662 million metric tons of carbon dioxide from being
produced, which is the equivalent of taking 96 million of today's
automobiles off the road in one year.
(3) Reduce United States oil consumption by 3.6 million barrels of oil
per day.
Subtitle A--Plug-in Hybrid Electric Vehicles
SEC. 311. SHORT TITLE.
This subtitle may be cited as the `Get Real Incentives to Drive Plug-in
Act'.
SEC. 312. DEFINITION.
For purposes of this subtitle, the term `plug-in hybrid electric vehicle'
means an on-road or nonroad vehicle that is propelled by an internal
combustion engine or heat engine using--
(1) any combustible fuel;
(2) an on-board, rechargeable storage device;
(3) a means of using an off-board source of electricity; and
(4) fuel cell technology.
SEC. 313. RESEARCH AND DEVELOPMENT GRANTS.
(a) In General- The Secretary of Transportation shall establish a program
to make grants to owners of domestic motor vehicle manufacturing or production
facilities for research, development, and demonstration on plug-in hybrid
electric vehicles.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Transportation for carrying out this section
$500,000,000 for the period encompassing fiscal years 2008 through 2012.
SEC. 314. PILOT PROJECT.
The Secretary of Transportation shall establish a pilot project to
determine how best to integrate plug-in hybrid electric vehicles into the
electric power grid and into the overall transportation infrastructure.
SEC. 315. TEST SITE.
The Secretary of Transportation shall establish a test site for the
advancement of battery technologies for plug-in hybrid electric vehicles, to
be modeled after the Department of Transportation's NHTSA Vehicle Research and
Test Center in Ohio.
SEC. 316. PLAN.
Not later than 2 years after the date of enactment of this subtitle, the
Secretary of Transportation, in collaboration with the Secretary of Energy,
shall transmit to Congress a plan for the introduction and implementation of a
plug-in hybrid electric vehicle support infrastructure.
SEC. 317. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT.
(a) In General- Section 30B of the Internal Revenue Code of 1986 is
amended by redesignating subsections (i) and (j) as subsections (j) and (k),
respectively, and by inserting after subsection (h) the following new
subsection:
`(i) New Plug-In Hybrid Motor Vehicle Credit-
`(1) IN GENERAL- For purposes of subsection (a), the new plug-in hybrid
motor vehicle credit determined under this subsection with respect to a new
qualified plug-in hybrid motor vehicle placed in service by the taxpayer
during the taxable year is $2,500, if such vehicle is a new qualified
plug-in hybrid motor vehicle with a gross vehicle weight rating of not more
than 8,500 pounds.
`(2) INCREASE FOR ADDITIONAL KILOWATT HOURS- The amount determined under
paragraph (1) shall be increased by $500 for each whole number of kilowatt
hours by which the storage capacity of the on-board, rechargeable
electricity storage device used by such vehicle exceeds 2.5 kilowatt hours,
but does not exceed 49.5 kilowatt hours.
`(3) NEW QUALIFIED PLUG-IN HYBRID MOTOR VEHICLE- For purposes of this
subsection, the term `new qualified plug-in hybrid motor vehicle' means a
motor vehicle--
`(A) which is propelled by an internal combustion engine or heat
engine using--
`(i) any combustible fuel,
`(ii) an on-board, rechargeable storage device with a storage
capacity of at least 2.5 kilowatt hours, and
`(iii) a means of using an off-board source of
electricity,
`(B) which, in the case of a passenger automobile or light truck, has
received on or after the date of the enactment of this section a
certificate that such vehicle meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of the Clean Air Act
for that make and model year vehicle,
`(C) the original use of which commences with the taxpayer,
`(D) which is acquired for use or lease by the taxpayer and not for
resale, and
`(E) which is made by a manufacturer.'.
(b) Conforming Amendments-
(1) Section 30B(a) of such Code is amended by striking `and' at the end
of paragraph (3), by striking the period at the end of paragraph (4) and
inserting `, and', and by adding at the end the following new
paragraph:
`(5) the new plug-in hybrid motor vehicle credit determined under
subsection (i).'.
(2) Section 30B(k)(2) of such Code, as redesignated by subsection (a),
is amended--
(A) by striking `or' and inserting a comma, and
(B) by inserting `, or a new qualified plug-in hybrid motor vehicle
(as described in subsection (i)(3))' after `subsection
(d)(2)(A))'.
(c) Effective Date- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
Subtitle B--Increase Ridership of Public Transportation
SEC. 321. INCREASED UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF
TRANSPORTATION FRINGE BENEFITS.
(a) In General- Section 132(f)(2) of the Internal Revenue Code of 1986
(relating to limitation on exclusion) is amended--
(1) by striking `$100' in subparagraph (A) and inserting `$200',
and
(2) by striking `$175' in subparagraph (B) and inserting `$200'.
(b) Inflation Adjustment Conforming Amendments- Subparagraph (A) of
section 132(f)(6) of such Code (relating to inflation adjustment) is
amended--
(1) by striking the last sentence,
(2) by striking `1999' and inserting `2008', and
(3) by striking `1998' and inserting `2007'.
(c) Effective Date- The amendments made by this subsection shall apply to
taxable years beginning after December 31, 2006.
SEC. 322. CREDIT FOR EMPLOYER COSTS OF PROVIDING CERTAIN MASS TRANSPORTATION
FRINGE BENEFITS TO THEIR EMPLOYEES.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business-related credits) is
amended by adding at the end the following new section:
`SEC. 45O. CREDIT FOR EMPLOYER COSTS OF PROVIDING CERTAIN MASS
TRANSPORTATION FRINGE BENEFITS TO THEIR EMPLOYEES.
`(a) In General- For purposes of section 38, the mass transportation
fringe credit is an amount equal to 25 percent of the cost paid or incurred by
an employer during the taxable year for providing any qualified transportation
fringe described in subparagraph (A) or (B) of section 132(f)(1) to employees
of such employer.
`(b) Limitation- The amount of the credit under subsection (a) for a month
may not exceed the dollar amount per month to which the amount of the fringe
benefits are limited under subparagraph (A) of section 132(f)(2).
`(c) Election To Have Credit Not Apply- A taxpayer may elect to have this
section not apply for any taxable year.'.
(b) Conforming Amendments-
(1) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of
section 38 of such Code (relating to current year business credit) is
amended by striking `plus' at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting `, plus', and by adding at
the end the following new paragraph:
`(32) the mass transportation fringe credit determined under section
45O(a).'.
(2) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1 of such Code is amended by adding at the end
the following new item:
`45O. Credit for employer costs of providing certain mass transportation
fringe benefits to their employees.'.
(c) Effective Date- The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.
SEC. 323. CLARIFICATION OF FEDERAL EMPLOYEE BENEFITS.
Section 7905 of title 5, United States Code, is amended--
(A) in paragraph (2)(C) by inserting `and' after the
semicolon;
(B) in paragraph (3) by striking `; and' and inserting a period;
and
(C) by striking paragraph (4); and
(2) in subsection (b)(2)(A) by amending subparagraph (A) to read as
follows:
`(A) a qualified transportation fringe as defined in section 132(f)(1)
of the Internal Revenue Code of 1986;'.
SEC. 324. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General- Paragraph (1) of section 132(f) of the Internal Revenue
Code of 1986 (relating to general rule for qualified transportation fringe) is
amended by adding at the end the following:
`(D) Bicycle commuting allowance.'.
(b) Bicycle Commuting Allowance Defined- Paragraph (5) of section 132(f)
of such Code (relating to definitions) is amended by adding at the end the
following:
`(F) BICYCLE COMMUTING ALLOWANCE- The term `bicycle commuting
allowance' means an amount provided to an employee for transportation on a
bicycle if such transportation is in connection with travel between the
employee's residence and place of employment.'.
(c) Limitation on Exclusion- Paragraph (2) of section 132(f) of such Code
is amended by striking `subparagraphs (A) and (B)' and inserting
`subparagraphs (A), (B), and (D)'.
(d) Effective Date- The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.
Subtitle C--Emissions Reductions and Oil Savings
CHAPTER 1--BIOFUELS SECURITY
SEC. 331. SHORT TITLE.
This chapter may be cited as the `Biofuels Security Act of 2007'.
Subchapter A--Renewable Fuels
SEC. 341. RENEWABLE FUEL PROGRAM.
Section 211(o)(2) of the Clean Air Act (42 U.S.C. 7545(o)(2)) is amended
by striking subparagraph (B) and inserting the following:
`(i) IN GENERAL- For the purpose of subparagraph (A), the applicable
volume for calendar year 2010 and each calendar year thereafter shall be
determined, by rule, by the Administrator, in consultation with the
Secretary of Agriculture and the Secretary of Energy, in a manner that
ensures that--
`(I) the requirements described in clause (ii) for specified
calendar years are met; and
`(II) the applicable volume for each calendar year not specified
in clause (ii) is determined on an annual basis.
`(ii) REQUIREMENTS- The requirements referred to in clause (i)
are--
`(I) for calendar year 2010, at least 10,000,000,000 gallons of
renewable fuel;
`(II) for calendar year 2020, at least 30,000,000,000 gallons of
renewable fuel; and
`(III) for calendar year 2030, at least 60,000,000,000 gallons of
renewable fuel.'.
SEC. 342. INSTALLATION OF E-85 FUEL PUMPS BY MAJOR OIL COMPANIES AT OWNED
STATIONS AND BRANDED STATIONS.
Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by
adding at the end the following:
`(11) INSTALLATION OF E-85 FUEL PUMPS BY MAJOR OIL COMPANIES AT OWNED
STATIONS AND BRANDED STATIONS-
`(A) DEFINITIONS- In this paragraph:
`(i) E-85 FUEL- The term `E-85 fuel' means a blend of gasoline
approximately 85 percent of the content of which is derived from ethanol
produced in the United States.
`(ii) MAJOR OIL COMPANY- The term `major oil company' means any
person that, individually or together with any other person with respect
to which the person has an affiliate relationship or significant
ownership interest, has not less than 4,500 retail station outlets
according to the latest publication of the Petroleum News Annual
Factbook.
`(iii) SECRETARY- The term `Secretary' means the Secretary of
Energy, acting in consultation with the Administrator of the
Environmental Protection Agency and the Secretary of
Agriculture.
`(B) REGULATIONS- The Secretary shall promulgate regulations to ensure
that each major oil company that sells or introduces gasoline into
commerce in the United States through wholly-owned stations or branded
stations installs or otherwise makes available 1 or more pumps that
dispense E-85 fuel (including any other equipment necessary, such as
including tanks, to ensure that the pumps function properly) at not less
than the applicable percentage of the wholly-owned stations and the
branded stations of the major oil company specified in subparagraph
(C).
`(C) APPLICABLE PERCENTAGE- For the purpose of subparagraph (B), the
applicable percentage of the wholly-owned stations and the branded
stations shall be determined in accordance with the following
table:
Applicable percentage of wholly-owned stations and branded
stations
`Calendar year:
(percent):
2008
5
2009
10
2010
15
2011
20
2012
25
2013
30
2014
35
2015
40
2016
45
2017 and each calendar year thereafter
50.
`(D) GEOGRAPHIC DISTRIBUTION-
`(i) IN GENERAL- Subject to clause (ii), in promulgating regulations
under subparagraph (B), the Secretary shall ensure that each major oil
company described in subparagraph (B) installs or otherwise makes
available 1 or more pumps that dispense E-85 fuel at not less than a
minimum percentage (specified in the regulations) of the wholly-owned
stations and the branded stations of the major oil company in each
State.
`(ii) REQUIREMENT- In specifying the minimum percentage under clause
(i), the Secretary shall ensure that each major oil company installs or
otherwise makes available 1 or more pumps described in that clause in
each State in which the major oil company operates.
`(E) FINANCIAL RESPONSIBILITY- In promulgating regulations under
subparagraph (B), the Secretary shall ensure that each major oil company
described in that subparagraph assumes full financial responsibility for
the costs of installing or otherwise making available the pumps described
in that subparagraph and any other equipment necessary (including tanks)
to ensure that the pumps function properly.
`(F) PRODUCTION CREDITS FOR EXCEEDING E-85 FUEL PUMPS INSTALLATION
REQUIREMENT-
`(i) EARNING AND PERIOD FOR APPLYING CREDITS- If the percentage of
the wholly-owned stations and the branded stations of a major oil
company at which the major oil company installs E-85 fuel pumps in a
particular calendar year exceeds the percentage required under
subparagraph (C), the major oil company earns credits under this
paragraph, which may be applied to any of the 3 consecutive calendar
years immediately after the calendar year for which the credits are
earned.
`(ii) TRADING CREDITS- Subject to clause (iii), a major oil company
that has earned credits under clause (i) may sell credits to another
major oil company to enable the purchaser to meet the requirement under
subparagraph (C).
`(iii) EXCEPTION- A major oil company may not use credits purchased
under clause (ii) to fulfill the geographic distribution requirement in
subparagraph (D).'.
SEC. 343. MINIMUM FEDERAL FLEET REQUIREMENT.
Section 303(b)(1) of the Energy Policy Act of 1992 (42 U.S.C. 13212(b)(1))
is amended--
(1) in subparagraph (C), by striking `and' after the semicolon;
(2) in subparagraph (D), by striking `fiscal year 1999 and thereafter,'
and inserting `each of fiscal years 1999 through 2007; and';
(3) by inserting after subparagraph (D) the following:
`(E) 100 percent in fiscal year 2008 and thereafter,'; and
(4) by inserting after the period at the end the following: `For
purposes of this subsection, the term `alternative fueled vehicle' shall
include plug-in hybrid vehicles (as defined in section 30B of the Internal
Revenue Code of 1986).'.
SEC. 344. APPLICATION OF GASOHOL COMPETITION ACT OF 1980.
Section 26 of the Clayton Act (15 U.S.C. 26a) is amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by inserting after subsection (b) the following:
`(c) For purposes of subsection (a), restricting the right of a franchisee
to install on the premises of that franchisee a renewable fuel pump, such as
one that dispenses E85, shall be considered an unlawful restriction.'; and
(3) in subsection (d) (as redesignated by paragraph (1))--
(A) by striking `section,' and inserting the following:
`section--
(B) by striking the period at the end and inserting `; and';
and
(C) by adding at the end the following:
`(2) the term `gasohol' includes any blend of ethanol and gasoline such
as E-85.'.
Subchapter B--Dual Fueled Automobiles
SEC. 351. REQUIREMENT TO MANUFACTURE DUAL FUELED AUTOMOBILES.
(1) IN GENERAL- Chapter 329 of title 49, United States Code, is amended
by inserting after section 32902 the following:
`Sec. 32902A. Requirement to manufacture dual fueled automobiles
`(a) Requirement- Each manufacturer of new automobiles that are capable of
operating on gasoline or diesel fuel shall ensure that the percentage of such
automobiles, manufactured in any model year after model year 2007 and
distributed in commerce for sale in the United States, which are dual fueled
automobiles is equal to not less than the applicable percentage set forth in
the following table:
`
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`For each of the following model years: The percentage of dual fueled automobiles manufactured shall be not less than:
2008 10
2009 20
2010 30
2011 40
2012 50
2013 60
2014 70
2015 80
2016 90
2017 and beyond 100.
------------------------------------------------------------------------------------------------------------------------------------------
`(b) Production Credits for Exceeding Flexible Fuel Automobile Production
Requirement-
`(1) EARNING AND PERIOD FOR APPLYING CREDITS- If the number of dual
fueled automobiles manufactured by a manufacturer in a particular model year
exceeds the number required under subsection (a), the manufacturer earns
credits under this section, which may be applied to any of the 3 consecutive
model years immediately after the model year for which the credits are
earned.
`(2) TRADING CREDITS- A manufacturer that has earned credits under
paragraph (1) may sell credits to another manufacturer to enable the
purchaser to meet the requirement under subsection (a).'.
(2) TECHNICAL AMENDMENT- The table of sections for chapter 329 of title
49, United States Code, is amended by inserting after the item relating to
section 32902 the following:
`32902A. Requirement to manufacture dual fueled automobiles.'.
(b) Activities To Promote the Use of Certain Alternative Fuels- The
Secretary of Transportation shall carry out activities to promote the use of
fuel mixtures containing gasoline or diesel fuel and 1 or more alternative
fuels, including a mixture containing at least 85 percent of methanol,
denatured ethanol, and other alcohols by volume with gasoline or other fuels,
to power automobiles in the United States.
SEC. 352. MANUFACTURING INCENTIVES FOR DUAL FUELED AUTOMOBILES.
Section 32905(b) of title 49, United States Code, is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively;
(2) by inserting `(1)' before `Except';
(3) by striking `model years 1993-2010' and inserting `model year 1993
through the first model year beginning not less than 18 months after the
date of enactment of the Biofuels Security Act of 2007'; and
(4) by adding at the end the following:
`(2) Except as provided in paragraph (5), subsection (d), or section
32904(a)(2), the Administrator shall measure the fuel economy for each model
of dual fueled automobiles manufactured by a manufacturer in the first model
year beginning not less than 30 months after the date of enactment of the
Biofuels Security Act of 2007 by dividing 1.0 by the sum of--
`(A) 0.7 divided by the fuel economy measured under section 32904(c)
when operating the model on gasoline or diesel fuel; and
`(B) 0.3 divided by the fuel economy measured under subsection (a) when
operating the model on alternative fuel.
`(3) Except as provided in paragraph (5), subsection (d), or section
32904(a)(2), the Administrator shall measure the fuel economy for each model
of dual fueled automobiles manufactured by a manufacturer in the first model
year beginning not less than 42 months after the date of enactment of the
Biofuels Security Act of 2007 by dividing 1.0 by the sum of--
`(A) 0.9 divided by the fuel economy measured under section 32904(c)
when operating the model on gasoline or diesel fuel; and
`(B) 0.1 divided by the fuel economy measured under subsection (a) when
operating the model on alternative fuel.
`(4) Except as provided in subsection (d) or section 32904(a)(2), the
Administrator shall measure the fuel economy for each model of dual fueled
automobiles manufactured by a manufacturer in each model year beginning not
less than 54 months after the date of enactment of the Biofuels Security Act
of 2007 in accordance with section 32904(c).
`(5) Notwithstanding paragraphs (2) through (4), the fuel economy for all
dual fueled automobiles manufactured to comply with the requirements under
section 32902A(a), including automobiles for which dual fueled automobile
credits have been used or traded under section 32902A(b), shall be measured in
accordance with section 32904(c).'.
CHAPTER 2--EMISSIONS REDUCTIONS
SEC. 361. EXTENSION OF BIODIESEL TAX CREDITS.
(a) In General- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the
Internal Revenue Code of 1986 are each amended by striking `2008' and
inserting `2018'.
(b) Effective Date- The amendments made by this section shall take effect
on the date of the enactment of this Act.
SEC. 362. LOW CARBON FUEL STANDARD.
The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at the end
the following:
`TITLE VII--GREENHOUSE GAS EMISSIONS FROM VEHICLE AND AIRCRAFT
FUELS
`SEC. 701. PURPOSE.
`The purpose of this title is to provide a reduction in the aggregate
greenhouse gas emissions per unit of energy consumed by vehicles and
aircraft.
`SEC. 702. FINDINGS.
`The Congress finds that:
`(1) The United States consumes a quarter of the world's oil and the oil
used in transportation accounts for a third of the United States emissions
of the greenhouse gases that cause global warming.
`(2) To avoid catastrophic global warming, the United States should take
decisive action with other nations to reduce greenhouse gas emissions by 60
to 80 percent by 2050.
`(3) Transitioning our transportation sector to more efficient use of
oil and low-carbon petroleum alternatives is essential to reducing global
warming pollution.
`(4) It is necessary and feasible to reduce emissions of greenhouse
gases, enhance national security by reducing dependence on oil and promote
economic well-being without sacrificing land, water and air quality, by
enacting energy policies that motivate environmental performance.
`SEC. 703. DEFINITIONS.
`For purposes of this title:
`(1) ADMINISTRATOR- The term `Administrator' means the Administrator of
the Environmental Protection Agency.
`(2) CARBON DIOXIDE EQUIVALENT- With respect to each greenhouse gas, the
term `carbon dioxide equivalent' means the amount of the greenhouse gas
resulting from that fuel that traps the same amount of heat as one metric
ton of carbon dioxide, as determined by the Administrator.
`(3) GREENHOUSE GAS- The term `greenhouse gas' means carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur
hexafluoride, and any other anthropogenically-emitted gas that is determined
by the Administrator, after notice and comment, to contribute to global
warming to a non-negligible degree.
`(4) LIFECYCLE GREENHOUSE GAS EMISSIONS- The term `lifecycle greenhouse
gas emissions' means greenhouse gases emitted during the entire cycle of
extraction, cultivation, production, manufacturing, feedstock extraction,
marketing, and distribution for a fuel or other sources of energy, as well
as those emitted during the use of such fuels and sources by vehicles and
aircraft. The term includes changes in land use and land cover associated
with each phase of such cycle.
`(5) VEHICLE- The term `vehicle' means a motor vehicle as defined in
section 216 and any other device used for the transportation of persons or
goods (other than an aircraft).
`SEC. 704. LOW CARBON FUEL PERFORMANCE STANDARDS.
`(a) Vehicle Fuel Standard- Not later than January 1, 2010, the
Administrator shall promulgate low carbon fuel performance standards for fuels
and other sources of energy used to propel vehicles. Such standards shall
begin to apply in the year 2015.
`(b) Graduated Reductions for Vehicle Fuel- The Administrator shall
promulgate, by rule, a declining standard for each 5 calendar year period
beginning in 2015. Each such standard shall represent a graduated percentage
reduction in aggregate emissions of greenhouse gases per Btu in each 5-year
period after 2014 through 2050 as provided in the following table. The
reduction for each such period shall be measured from the baseline for vehicle
fuel, as determined by the Administrator under subsection (f).
-----------------------------------------------
-----------------------------------------------
`5-year period Percent reduction
2015 through 2019 3 percent
2020 through 2024 6 percent
2025 through 2029 9 percent
2030 through 2034 12 percent
2035through 2039 15 percent
2040 through 2044 18 percent
2045 through 2049 21 percent
-----------------------------------------------
`(c) Additional Reductions- Each 5 years during the period 2015 through
2050 the Administrator shall review available control technology, safety
considerations, and land and other resources available for production of fuels
and other sources of energy used to propel vehicles. Following such review,
the Administrator may, by rule, promulgate a more stringent standard than the
standard otherwise applicable under subsection (b) which more stringent
standard, based on such review, the Administrator determines to be requisite
to protect the public health and welfare from any known or anticipated adverse
effects associated with greenhouse gas emissions.
`(d) Standard for Aircraft Fuel- Not later than January 1, 2010, the
Administrator shall promulgate a low carbon fuel performance standard for
fuels and other sources of energy used by aircraft. The performance standard
for such fuels and other sources of energy for aircraft for each year after
2015 shall be the baseline for that fuel, as determined by the Administrator
under subsection (f). Such standard shall begin to apply in the year 2015 and
continue to apply through the calendar year 2019. The standard shall remain in
effect thereafter unless, for each 5 year period thereafter, beginning in
2020, the Administrator and the Secretary of Transportation determine that a
more stringent standard is necessary to carry out the purposes of this Act.
Such determination may be made only after a thorough review of available
technology and safety considerations. Following such determination, the
Administrator shall promulgate a rule establishing a more stringent
standard.
`(e) Terms of Standards- Each standard under this section shall be
expressed in carbon dioxide, or carbon dioxide equivalent, emissions per Btu
of energy from the aggregate of all fuels and other sources of energy used by
vehicles or by aircraft.
`(1) VEHICLE FUEL- The baseline for vehicle fuel for purposes of the
standards under this section shall be the aggregate greenhouse gas emissions
per Btu from all such fuel and other sources of energy used by vehicles in
calendar year 2007, as determined by the Administrator.
`(2) AIRCRAFT FUEL- For fuel used by aircraft, the baseline for purposes
of the standard under this section shall be the aggregate greenhouse gas
emissions per Btu from all such fuel and other sources of energy used by
aircraft in calendar year 2007, as determined by the Administrator.
`SEC. 705. EPA REGULATIONS; CALCULATION OF EMISSIONS PER BTU.
`(a) Regulations- After consultation with the Secretary of Energy and the
Secretary of Commerce, and a review of all compliance methods, the
Administrator, after notice and opportunity for comment, shall promulgate, not
later than January 1, 2010, and may periodically revise thereafter,
regulations requiring compliance with the annual performance standards
established under section 703.
`(b) Calculations of Greenhouse Emission Rate Per Btu-
`(1) INDIVIDUAL CALCULATIONS UNDER STANDARD METHODOLOGY- The regulations
under this section shall provide standard, transparent and public methods
for each producer, importer, or blender of a fuel or other source of energy
used, directly or indirectly, as a fuel for vehicles or aircraft to
calculate the greenhouse gases emitted per Btu of such fuel or other source
of energy when so used.
`(2) LIFECYCLE GREENHOUSE GAS EMISSION CALCULATION- The regulations
under this section shall include appropriate methods for estimating the
lifecycle greenhouse gas emissions of each fuel and other energy source. For
purposes of such regulations, the Administrator shall develop methods to
quantify the direct and indirect emissions resulting from biofuel
production.
`(3) SPECIAL ADJUSTMENT FOR ELECTRICITY AND HYDROGEN- In making the
calculation under this subsection, the Administrator shall adjust the Btus
of energy delivered from the use of electricity and hydrogen used as a fuel
or source of energy for vehicles and aircraft. Such adjustment shall reflect
the greenhouse gas reductions on a per mile basis in order to reflect the
inherent energy efficiency of an average battery electric, plug in hybrid
electric vehicle, or hydrogen fuel cell vehicle.
`(4) NAS REPORT- The Administrator shall, not less than 90 days after
the enactment of this Act, enter into a contract with the National Academy
of Sciences to assess and recommend methods to calculate the lifecycle
greenhouse gas emissions associated with the production and use of fuels and
other sources of energy used as a fuel for vehicles and aircraft.
`(5) CONSULTATION- In developing regulations under this section, the
Administrator shall consult with State agencies and other government
entities within and outside the United States having programs for control of
greenhouse gas emissions from vehicle fuels and shall promulgate such
regulations after consideration of the report under paragraph (4).
`SEC. 706. COMPLIANCE WITH STANDARD.
`(a) Requirement To Meet Standard- The regulations under this title shall
provide that each producer, importer or blender of a fuel or other source of
energy used for transportation by vehicles or aircraft shall be required to
generate or obtain in each calendar year after 2009 credits equal to the
excess, if any, of paragraph (1) over paragraph (2) multiplied by paragraph
(3). No producer, importer, or blender shall be required to obtain credits if
the fuel or other source of energy meets the aggregate performance standard
under section 703 for the calendar year concerned.
`(1) The greenhouse gases (expressed as carbon dioxide or carbon dioxide
equivalent) emitted per Btu of fuel or other energy produced, imported, or
blended by such producer, importer, or blender in the calendar year
concerned.
`(2) The aggregate performance standard for all such producers,
importer, or blenders established under section 703 for the calendar year
concerned.
`(3) The total number of Btus used in vehicles and aircraft that is
provided by the fuel or other energy produced, imported, or blended by such
producer, importer or blender in the year concerned.
`(b) Generation, Trading, and Banking of Credits-
`(1) CREDIT GENERATION- For each calendar year after the calendar year
2014, each producer, importer, or blender of each fuel or other source of
energy used for transportation by vehicles or aircraft shall be credited
with greenhouse gas emission credits equal to the excess, if any, of
paragraph (2) of subsection (a) over paragraph (1) of subsection (a)
multiplied by paragraph (3) of subsection (a).
`(2) TRADING- The regulations under this section shall allow purchase,
sale, and trading of such allowance producers, importers and blenders, and
other persons. Credits generated this section may be held and traded by any
person. Credits under this section do not constitute a property right, and
nothing in any provision of law shall be construed to limit the authority of
the United States to terminate or limit any such credit.
`(3) BANKING- Credits generated under this section may be used in the
year in which they are generated and in the following calendar year.
`(c) Monitoring- The Administrator shall promulgate rules to ensure that
greenhouse gas emissions and the use of credits generated under this section
are accurately tracked, reported, and verified.
`(1) IN GENERAL- If any fuel or other source of energy used, directly or
indirectly, by vehicles exceeds in any calendar year the standard
established under this section and the producer, importer or blender thereof
has not acquired credits to offset such excess, the producer, importer or
blender shall pay a civil penalty in an amount determined under paragraph
(2).
`(2) AMOUNT OF CIVIL PENALTY- The amount of the civil penalty under this
subsection shall be twice the market price for the credits that would be
necessary for such producer, blender, or importer to meet the standard for
the fuel or energy source concerned. The Administrator shall establish the
method of determining such market price.
`(3) NO DEMAND REQUIRED- A civil penalty under this subsection shall be
due and payable to the Administrator without demand.
`(4) CIVIL ACTION- The Administrator may bring a civil action in the
appropriate United States district court to recover the amount of any civil
penalty due and payable under this subsection.
`SEC. 707. CERTIFICATION AND LABELING OF LOW-CARBON TRANSPORTATION
FUELS.
`(a) Identification- Not later than January 1, 2009, the Administrator
shall identify and label low-carbon transportation fuels based on the
following criteria.
`(1) The fuel is responsible for at least 20 percent lower lifecycle
greenhouse gas emissions per BTU delivered compared to the 2007
baseline.
`(2) The fuel is likely to have fewer adverse impacts on wildlife
habitat, biodiversity, water quality or air quality over the lifecycle of
the fuel, than conventional transportation fuels.
`(3) The fuel achieves reduction in petroleum content over its
lifecycle.
In the case of electric energy and hydrogen used, directly or indirectly,
as a fuel or source of energy for vehicles, the Administrator shall apply the
special adjustment factor referred to in section 705(b)(3) in identifying
low-carbon transportation fuels.
`(b) Certification- Not later than January 1, 2009, the Administrator
shall establish a low-carbon fuel certification process to certify fuels that
the Administrator has identified as low-carbon fuels, make that certification
information available to consumers. Under regulations promulgated by the
Administrator any person manufacturing, importing, or distributing low-carbon
fuels may provide labeling for such fuels in accordance with regulations
promulgated by the Administrator and promote public awareness of those
fuels.
`SEC. 708. FUEL SAFEGUARDS.
`(a) Definitions- As used in this section:
`(1) The term `Community Fire Safety Zone' means the immediate vicinity
of buildings and other areas regularly occupied by people, or of
infrastructure, at risk of wildfire.
`(2) The term `Ecosystem conversion' means altering the native habitat
to such an extent that it no longer supports most characteristic native
species and ecological processes.
`(3) The term `native habitat' means dynamic groupings of native plant
and animal communities that occur together on the landscape or in the water
and are tied together by similar ecological processes, underlying
environmental features such as geology, or environmental gradients such as
elevation, but does not include land that is currently in agricultural
production.
`(4) NATIONAL INTEREST LANDS- The term `National interest lands' means
areas designated as national wildlife refuges, national forests, or national
grasslands, areas managed by the National Park Service (including national
parks and monuments), and lands managed by the Bureau of Land
Management.
`(5) The term `Community Fire Safety Zone' means the immediate vicinity
of buildings and other areas regularly occupied by people, or of
infrastructure, at risk of wildfire.
`(6) The term `Sensitive Lands' means old growth forests; roadless areas
on national forests, wilderness study areas; native grasslands; intact,
rare, threatened or endangered ecosystems; and any area containing
significant concentrations of biodiversity values including endemism,
endangered species, high species richness, and refugia.
`(b) In General- Under regulations of the Administrator, no transportation
fuel sold in interstate commerce after January 1, 2010 may be derived all or
in part from biomass from the following sources:
`(1) Lands where the Administrator determines that ecosystem conversion
has occurred after the date of the enactment of this Act.
`(3) Land enrolled in the Conservation Reserve Program established under
subchapter B of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.) or the wetlands reserves program
established under subchapter C of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3837 et seq.), unless the biomass
is produced in a manner consistent with all applicable guidelines and terms,
and conditions under the program.
`(4) National interest lands with the exception of either of the
following:
`(A) Harvest residue, mill waste, or pre-commercial thinnings, from
lands assigned to timber production.
`(B) Biomass obtained from a Community Fire Safety Zone.
`(5) Recyclable postconsumer waste paper, painted, treated, or
pressurized wood, wood contaminated with plastic or metals.
`(6) Municipal solid waste (as defined in the Solid Waste Disposal
Act).
`(7) Materials produced, harvested, acquired, transported, or processed
pursuant to an exemption from otherwise applicable environmental laws or
rules.
`SEC. 709. AIR QUALITY IMPACTS.
`(a) In General- The Administrator shall ensure, under regulation, that no
transportation fuel sold or introduced in interstate commerce after January 1,
2010, shall result in--
`(1) average per gallon vehicle emissions (measured on a mass basis) of
air pollutants in excess of the quantity of those emissions attributable to
gasoline sold or introduced into commerce in the United States during
calendar year 2007; or
`(2) a violation of any motor vehicle emission or fuel content
limitation under any other provision of this Act.
`SEC. 710. RESEARCH AND DEVELOPMENT FUNDING.
`There is authorized to be appropriated to the Secretary of Energy such
sums as may be necessary carry out a cooperative program of research and
development relating to lower carbon alternatives for aircraft jet fuel and
fuel for other vehicles. The program shall provide for matching Federal grants
to private entities carrying out such research and development.
`SEC. 711. STATE LAWS.
`Nothing in this title shall be interpreted to preempt or limit State
actions to address climate change.'.
SEC. 363. LOAN GUARANTEE PROGRAM TO DEMONSTRATE LOW CARBON RENEWABLE
FUEL.
(a) In General- Section 1703 of the Energy Policy Act of 2005 is amended
by adding the following new subsection after subsection (b) and redesignating
subsections (c) through (e) as (d) through (f):
`(c) Low Carbon Renewable Fuel Projects-
`(1) DEFINITIONS- In this subsection:
`(A) LOW CARBON RENEWABLE FUEL- The term `low carbon renewable fuel'
means transportation fuel that is not an ether and that is produced from
renewable biomass; or is natural gas produced from a biogas source,
including a landfill, sewage waste treatment plant, feedlot, or other
place where decaying organic material is found; is used to replace or
reduce the quantity of fossil fuel present in a fuel mixture used for
transportation; and has a lifecycle greenhouse gas emissions, per unit of
energy, that is at least 60 percent less than the baseline defined in
section 704 of the Clean Air Act.
`(B) TRANSPORTATION FUEL- The term `transportation fuel' means fuel
used to power motor vehicles, nonroad engines, or aircraft.
`(C) RENEWABLE BIOMASS- The term `renewable biomass' is any organic
matter that is available on a renewable or recurring basis, including
dedicated energy crops and trees, agricultural food and feed crop
residues, aquatic plants, animal wastes, wood and wood residues, and other
vegetative waste materials. Biomass sources that are covered under this
definition are subject to the limitations set forth section 708 of the
Clean Air Act.
`(2) PROJECTS- The Secretary may make loan guarantees under this section
to carry out commercial demonstration projects to demonstrate the
feasibility and viability of producing low carbon renewable fuel until the
technology becomes commercially viable and feasible.
`(3) DESIGN CAPACITY- Each project for which a loan guarantee is
provided under this subsection shall have a design capacity to produce at
least 30,000,000 gallons of renewable fuel each year.
`(4) APPLICANT ASSURANCES- An applicant for a loan guarantee under this
subsection shall provide assurances, satisfactory to the Secretary,
that--
`(A) the project design has been validated through the operation of a
continuous process facility with a cumulative output of at least 50,000
gallons of renewable fuel;
`(B) the project has been subject to a full technical review;
`(C) the project is covered by adequate project performance
guarantees;
`(D) the project, with the loan guarantee, is economically viable;
and
`(E) there is a reasonable assurance of repayment of the guaranteed
loan.'.
(b) Funding- Section 1704(a) of such Act is amended by adding the
following at the end thereof: `Not less than 30 percent of the funds made
available under this section shall be used for purposes of loan guarantees
under section 1703(c) for low carbon renewable fuel. The aggregate amount of
guarantees under section 1703(c) at any one time shall not exceed
$20,000,000,000'.
SEC. 364. REQUIRE AUTOMAKERS TO REDUCE TAILPIPE GHG EMISSIONS.
Title II of the Clean Air Act (42 U.S.C. 7581 et seq.) is amended by
adding at the following:
`PART D--GREENHOUSE GAS EMISSION REDUCTIONS
`SEC. 251. DEFINITIONS.
`(1) GREENHOUSE GAS- The term `greenhouse gas' means----
`(E) perflourocarbons; and
`(F) sulfur hexafluoride.
`(2) MOTOR VEHICLE- The term `motor vehicle' has the meaning given to
such term in section 216.
`SEC. 252. GREENHOUSE GAS EMISSION REDUCTIONS FROM AUTOMOBILES.
`(a) Vehicle Emissions Baseline- Not later than January 1, 2009, based on
the aggregate quantity and variety of new automobiles sold in the United
States during model year 2002 and the average greenhouse gas emissions from
those new automobiles, the Administrator shall determine the average quantity
of greenhouse gas emissions per vehicle mile (referred to in this section as
the `new vehicle emissions baseline').
`(b) Subsequent Average Emissions From New Automobiles- Not later than
June 1, 2015, and annually thereafter, based on the aggregate quantity and
variety of new automobiles sold in the United States during the preceding
model year and the average greenhouse gas emissions from those new automobiles
during the preceding model year, the Administrator shall determine the average
quantity of greenhouse gas emissions per vehicle mile for the model year.
`(c) Required Reductions in Greenhouse Gas Emissions From Automobiles-
`(1) IN GENERAL- The Administrator shall, by regulation, require each
manufacturer of automobiles for sale in the United States to reduce the
average quantity of greenhouse gas emissions per vehicle mile of the
aggregate quantity and variety of automobiles manufactured by the
manufacturer to a level that is----
`(A) for automobiles manufactured in model year 2016, 30 percent less
than the new vehicle emissions baseline; and
`(B) not later than every fifth model year thereafter, such percent as
shall be specified by the Administrator that is less than the average
quantity of greenhouse gas emissions per vehicle mile required for the
model year preceding that fifth model year, as determined by the
Administrator under subsection (b).'.
SEC. 365. ELIMINATION OF 2-FLEET RULE.
(a) In General- Section 32904 of title 49, United States Code, is
amended--
(1) by striking subsection (b); and
(2) by redesignating subsections (c) through (e) as subsections (b)
through (d), respectively.
(b) Effective Date- The amendments made by subsection (a) shall apply to
model year 2010 and subsequent model years.
TITLE IV--ELECTRICITY SECTOR
Subtitle A--Tax Incentives
SEC. 401. EXTENSION THROUGH 2018 FOR PLACING QUALIFIED FACILITIES IN SERVICE
FOR PRODUCING RENEWABLE ELECTRIC ENERGY.
(a) In General- Subsection (d) of section 45 of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended by striking `January 1,
2009' each place it appears and inserting `January 1, 2019'.
(b) Effective Date- The amendments made by this section shall apply to
property originally placed in service on or after January 1, 2009.
SEC. 402. EXTENSION OF ENERGY CREDIT.
(a) In General- Section 48 of such Code (relating to energy credit) is
amended--
(1) by striking `January 1, 2009' in both places it appears and
inserting `January 1, 1019', and
(2) by striking `December 31, 2008' in both places it appears and
inserting `December 31, 2018'.
SEC. 403. EXPANSION AND MODIFICATION OF RENEWABLE RESOURCE CREDIT.
(a) Additional Qualified Energy Resources-
(1) IN GENERAL- Section 45(c)(1) of such Code (relating to resources) is
amended by striking `and' at the end of subparagraph (F), by striking the
period at the end of subparagraph (G), and by adding at the end the
following new subparagraphs:
`(I) incremental geothermal production, and
`(J) marine and hydrokinetic renewable energy.'.
(2) DEFINITION OF RESOURCES- Section 45(c) of such Code is amended by
adding at the end the following new paragraphs:
`(10) INCREMENTAL GEOTHERMAL PRODUCTION-
`(A) IN GENERAL- In the case of an incremental geothermal facility
described in subsection (d)(9), the term `incremental geothermal
production' means for any taxable year the excess of--
`(i) the total kilowatt hours of electricity produced from such
facility for the taxable year, over
`(ii) the average annual kilowatt hours produced at such facility
for 5 of the previous 7 calendar years before the date of the enactment
of this paragraph after eliminating the highest and the lowest kilowatt
hour production years in such 7-year period.
`(B) SPECIAL RULE- A facility described in subsection (d)(9) which was
placed in service at least 7 years before the date of the enactment of
this paragraph shall commencing with the year in which such 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 not to exceed 30
percent.
`(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY-
`(A) IN GENERAL- The term `marine and hydrokinetic renewable energy'
means energy derived from--
`(i) waves, tides, or currents in oceans, estuaries, or tidal
areas,
`(ii) free flowing water in rivers, lakes, or streams,
`(iii) free flowing water in man-made channels, including projects
that utilize nonmechanical structures to accelerate the flow of water
for electric power production purposes, or
`(iv) differentials in ocean temperature.
`(B) EXCEPTIONS- Such term shall not include any energy which
is--
`(i) described in subparagraphs (A) through (I) of paragraph (1),
or
`(ii) derived from any source that utilizes a dam, diversionary
structure, or impoundment for electric power production purposes, except
as provided in subparagraph (A)(iii).'.
(3) DEFINITION OF FACILITIES- Section 45(d) of such Code (relating to
qualified facilities) is amended by adding at the end the following new
paragraphs:
`(11) INCREMENTAL GEOTHERMAL FACILITIES- In the case of a facility using
incremental geothermal to produce electricity, the term `qualified facility'
means any facility owned by the taxpayer which is originally placed in
service before the date of the enactment of this paragraph, but only to the
extent of its incremental geothermal production. In the case of a qualified
facility described in the preceding sentence, the 10-year period referred to
in subsection (a) shall be treated as beginning not earlier than such date
of enactment. Such term shall not include any property described in section
48(a)(3) the basis of which is taken into account by the taxpayer for
purposes of determining the energy credit under section 48.
`(12) MARINE AND HYDROKINETIC RENEWABLE ENERGY- In the case of a
facility producing electricity from marine and hydrokinetic renewable
energy, the term `qualified facility' means any facility owned by the
taxpayer which is originally placed in service after the date of the
enactment of this paragraph and before January 1, 2019.'.
(b) Full Credit Rate for Qualified Hydropower Facility- Subparagraph (A)
of section 45(b)(4) of such Code is amended by striking `(7), or (9)' and
inserting `or (7)'.
(c) Effective Date- The amendments made by this section shall apply to
electricity produced and sold in taxable years beginning after the date of the
enactment of this Act.
SEC. 404. ENERGY CREDIT FOR SMALL WIND, SMALL GEOTHERMAL, SMALL BIOMASS, AND
SMALL KINETIC HYDROPOWER.
(1) ENERGY PROPERTIES- Subparagraph (A) of section 48(a)(3) of such
Code, as amended by this title, is amended by striking `or' at the end of
clause (iii), by inserting `or' at the end of clause (iv), and by adding at
the end the following new clause:
`(v) equipment which uses wind, a geothermal deposit, biomass, or
marine and hydrokinetic energy to generate electricity, if such
equipment has a nameplate capacity of 2 megawatts or less and the
principal consumer of such electricity is the taxpayer,'.
(2) ENERGY PERCENTAGE- Subclause (II) of section 48(a)(2)(A)(i) of such
Code is amended by striking `paragraph (3)(A)(i)' and inserting `clause (i)
or (vi) of paragraph (3)(A)'.
(3) GEOTHERMAL; BIOMASS; MARINE AND HYDROKINETIC ENERGY DEFINED- Section
48 of such Code is amended by adding at the end the following new
subsection:
`(d) Geothermal; Biomass; Marine and Hydrokinetic Energy- For purposes of
this section--
`(1) GEOTHERMAL- The term `geothermal deposit' has the meaning given
such term by section 613(e)(2).
`(2) BIOMASS- The term `biomass' has the meaning given such term by
section 45K(c)(3).
`(3) MARINE AND HYDROKINETIC ENERGY- The term `marine and hydrokinetic
energy' has the meaning given such term by section 45(c)(11).'.
(b) Effective Date- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 405. MODIFICATIONS FOR CLEAN RENEWABLE ENERGY BONDS.
(1) INCREASE IN LIMITATION AND CHANGE TO ANNUAL LIMIT- Paragraph (1) of
section 54(f) of such Code (relating to limitation on amount of bonds
designated) is amended by striking `of $1,200,000,000' in subsection (f)(1)
and inserting `for each calendar year of $2,000,000,000'--
(2) EXTENSION OF TERMINATION- Subsection (m) of section 54 (relating to
termination) is amended by striking `2008' subsection (m) and inserting
`2018'.
(3) MODIFICATION IN ALLOCATION OF NATIONAL ANNUAL BOND LIMITATION-
Paragraph (2) of section 54 of such Code is amended--
(A) by striking `may not allocate' and all that follows through the
period and inserting `shall allocate--' , and
(B) by adding the end the following new subparagraphs:
`(A) $1,187,500,000 of the annual national clean renewable energy bond
limitation to finance qualified projects of qualified borrowers which are
public power entities,
`(B) $750,000,000 of such limitation to finance qualified projects of
qualifiied borrowers which are cooperative electric companies,
and
`(C) $62,500,000 of such limitation to finance qualified projects of
qualified borrowers which are governmental bodies.'.
(4) PUBLIC POWER ENTITY DEFINED- Subsection (j) of section 54 of such
Code (defining Cooperative electric company; qualified energy tax credit
bond lender; governmental body; qualified borrower) is amended--
(A) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6),
respectively, and by inserting after paragraph (3) the following new
paragraph:
`(4) PUBLIC POWER ENTITY- The term `public power entity' means a State
utility with a service obligation, as such terms are defined in section 217
of the Federal Power Act (as in effect on the date of enactment of this
paragraph).'.
(B) in paragraph (5), as so redesignated, by striking `or' at the end
of subparagraph (B), by striking the period at the end of subparagraph (C)
and inserting `, or', and by adding at the end the following new
subparagraph:
`(D) a public power entity.', and
(C) in paragraph (6), as so redesignated, by striking `or' at the end
of subparagraph (A), by striking the period at the end of subparagraph (B)
and inserting `, or', and by adding at the end the following new
subparagraph:
`(C) a public power entity.'.
(b) Effective Date- The amendments made by this section shall apply to
bonds issued after December 31, 2007.
SEC. 406. EXPANSION AND INCREASE FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY
CREDIT.
(a) Increase in Credit Limitation for Residential Solar Property-
Paragraph (1) of section 25D(b) of the Internal Revenue Code (relating to
limitations) is amended--
(1) by striking `$2,000' in subparagraph (B) and inserting `$4,000',
and
(2) by striking subparagraph (A) and redesignating subparagraphs (B) and
(C) and subparagraphs (A) and (B), respectively.
(1) IN GENERAL- Subsection (a) of section 25D of such Code (relating to
allowance of credit) is amended by striking `and' at the end of paragraph
(2), by striking the period at the end of paragraph (3), and by adding at
the end the following new paragraph:
`(4) 30 percent of the qualified wind property expenditures made by the
taxpayer during such year,'.
(2) DEFINITION- Subsection (d) of section 25D of such Code (relating to
definitions) is amended by adding at the end the following new
paragraphs:
`(4) QUALIFIED WIND PROPERTY EXPENDITURES- The term `qualified wind
property expenditures' means an expenditure for property which uses wind to
generate electricity for use in a dwelling unit located in the United States
and used as a principal residence (within the meaning of section 121) by the
taxpayer.'.
(c) Effective Date- The amendments made by this section shall apply to
property placed in service in taxable years beginning after December 31,
2007.
SEC. 407. EXPANSION OF RENEWABLE RESOURCE CREDIT TO INCLUDE THERMAL
ENERGY.
(1) PRODUCTION OF THERMAL ENERGY- Paragraph (2) of section 45(a) of the
Internal Revenue Code of 1986 is amended by inserting after `electricity'
the following: `or each 3,413 British Thermal Units of thermal energy (or
fraction thereof)'.
(2) RECYCLED ENERGY AS QUALIFIED ENERGY RESOURCE- Paragraph (1) of
section 45(c) of such Code, as amended by this Act, is amended by striking
`and' at the end of subparagraph (I), by striking the period at the end of
subparagraph (J) and inserting `and', and by adding at the end the following
new subparagraph:
(3) DEFINITION OF RESOURCE- Subsection (c) of section 45 of such Code is
amended by adding at the end the following new paragraph:
`(A) IN GENERAL- The term `recycled energy' means electricity or
thermal energy derived from combined heat and power, industrial waste
heat, or municipal waste heat.
`(B) DEFINITIONS- For purposes of this paragraph--
`(i) COMBINED HEAT AND POWER- The term `combined heat and power'
means a system which uses the same energy source, which may be
non-renewable fuel, for the simultaneous or sequential generation of
electrical power, mechanical shaft power, or both, in combination with
the generation of steam or other forms of useful thermal energy
(including heating and cooling applications).
`(ii) INDUSTRIAL WASTE HEAT- The term `industrial waste heat' means
heat which--
`(I) is a byproduct of a manufacturing process, and
`(II) is normally not recovered or used.
`(iii) MUNICIPAL WASTE HEAT- The term `municipal waste heat' means
heat which--
`(I) is a byproduct of a municipal sewage treatment or other
municipal process, and
`(II) is normally not recovered or used.'.
(4) DEFINITION OF FACILITY- Subsection (d) of section 45 of such Code is
amended by adding at the end the following:
`(A) IN GENERAL- In the case of a facility using recycled energy to
produce electricity or thermal energy, the term `qualified facility' means
a facility which--
`(i) is a combined heat and power facility, an industrial waste heat
facility, or a municipal waste heat facility, and
`(ii) which is placed in service after the date of the enactment of
this paragraph and before January 1, 2014.
`(B) COMBINED HEAT AND POWER- For purposes of this paragraph, the term
`combined heat and power facility' means any facility--
`(i) owned by the taxpayer,
`(I) at least 20 percent of its total useful energy in the form of
thermal energy, and
`(II) at least 20 percent of its total useful energy in the form
of electrical or mechanical power (or a combination thereof),
and
`(iii) the energy efficiency percentage of which exceeds 60
percent.
`(C) INDUSTRIAL WASTE HEAT OR MUNICIPAL WASTE HEAT- For purposes of
this paragraph, the term `industrial waste heat facility' means any
facility which uses industrial waste heat to produce electricity or
thermal energy.
`(D) MUNICIPAL WASTE HEAT FACILITY- For purposes of this paragraph,
the term municipal waste heat facility means any facility which uses
municipal waste heat to produce electricity or thermal energy.
`(E) ENERGY EFFICIENCY PERCENTAGE- For purposes of subparagraph (B),
the term `energy efficiency percentage', with respect to a facility, means
the percentage determined by dividing--
`(i) the total useful electrical, thermal, and mechanical power,
calculated in British Thermal Units, produced by the system at normal
operating rates, by
`(ii) the lower heating value, calculated in British Thermal Units,
of the primary fuel source for the system.'.
(5) REDUCED CREDIT- Subparagraph (A) of section 45(b)(4) of such Code
(relating to credit rate and period for electricity produced and sold from
certain facilities) is amended--
(A) by striking `or (7)' inserting `(7), or (13)', and
(B) by inserting `or thermal energy sold in any calendar year after
2007 at a facility described in subsection (d)(13),' after `subsection
(d),'.
(6) CONFORMING AMENDMENTS-
(A) Subsection (a) of section 45 of such Code is amended by inserting
`and thermal energy' after `renewable electricity'.
(B) Paragraph (2) of section 45(c) of such Code is amended by
inserting `or thermal energy' after `electricity'.
(C) Subsection (d) of section 45 of such Code is amended by inserting
`or thermal energy' after `electricity' in each place it appears.
(D) Subsection (e) of section 45 of such Code is amended by inserting
`or thermal energy' after `electricity' each place it appears in
paragraphs (1) and (4).
(E) Paragraph (8) of section 38(b) of such Code is amended by
inserting `or thermal energy' after `electricity'.
(F) The heading of section 45 of such Code is amended by inserting `or
thermal energy' after `electricity'.
(G) The table of sections for subpart D of part IV of subchapter A of
chapter 1 is amended by striking the item relating to section 45 and
inserting the following new item:
`Sec. 45. Electricity or thermal energy produced from certain renewable
resources, etc.'.
(b) Effective Date- The amendments made by this section shall apply to
electricity or thermal energy produced and sold after the date of the
enactment of his Act.
Subtitle B--Promoting Energy Efficient Investments
SEC. 411. RATE MODIFICATIONS PROMOTING ENERGY EFFICIENCY INVESTMENTS.
(a) Electric Utilities- Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 is amended by inserting at the end thereof:
`(16) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY EFFICIENCY
INVESTMENTS-
`(A) IN GENERAL- The rates allowed to be charged by any electric
utility shall--
`(i) align utility incentives with the delivery of cost-effective
energy efficiency; and
`(ii) promote energy efficiency investments.
`(B) POLICY OPTIONS- In complying with subparagraph (A), each State
regulatory authority and each nonregulated utility shall
consider--
`(i) removing the throughput incentive and other regulatory and
management disincentives to energy efficiency;
`(ii) providing utility incentives for the successful management of
energy efficiency programs;
`(iii) including the impact on adoption of energy efficiency as 1 of
the goals of retail rate design, recognizing that energy efficiency must
be balanced with other objectives;
`(iv) adopting rate designs that encourage energy efficiency for
each customer class; and
`(v) allowing timely recovery of energy efficiency-related
costs.'.
(b) Natural Gas Utility- Section 303 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 3203(b)) is amended by adding the following at
the end of subsection (b):
`(5) ENERGY EFFICIENCY- Each natural gas utility shall--
`(A) integrate energy efficiency resources into the plans and planning
processes of the natural gas utility; and
`(B) adopt policies that establish energy efficiency as a priority
resource in the plans and planning processes of the natural gas
utility.
`(6) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY EFFICIENCY- The rates
allowed to be charged by a natural gas utility shall align utility
incentives with the deployment of cost-effective energy efficiency. In
complying with the standard under this paragraph, each State regulatory
authority and each nonregulated utility shall consider--
`(A) separating fixed-cost revenue recovery from the volume of
transportation or sales service provided to the customer;
`(B) providing to utilities incentives for the successful management
of energy efficiency programs, such as allowing utilities to retain a
portion of the cost-reducing benefits accruing from the programs;
`(C) promoting the impact on adoption of energy efficiency as 1 of the
goals of retail rate design, recognizing that energy efficiency must be
balanced with other objectives; and
`(D) adopting rate designs that encourage energy efficiency for each
customer class.'.
(1) TIME LIMITATIONS- Section 112(b) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding at the end the
following:
`(6)(A) Not later than 1 year after the enactment of this paragraph,
each State regulatory authority (with respect to each electric utility for
which it has ratemaking authority) and each nonregulated utility shall
commence the consideration referred to in section 111, or set a hearing date
for consideration, with respect to the standard established by paragraph
(16) of section 111(d).
`(B) Not later than two years after the date of the enactment of the
this paragraph, each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority), and each
nonregulated electric utility, shall complete the consideration, and shall
make the determination, referred to in section 111 with respect to each
standard established by paragraph (1) of section 111(d)'.
(2) FAILURE TO COMPLY- Section 112(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by adding at the end the
following: `In the case of the standard established by paragraph (15), the
reference contained in this subsection to the date of enactment of this Act
shall be deemed to be a reference to the date of enactment of paragraph
(16).'.
(A) IN GENERAL- Section 112 of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2622) is amended by adding at the end the
following:
`(f) Prior State Actions- Subsections (b) and (c) of this section shall
not apply to the standard established by paragraph (15) of section 111(d) in
the case of any electric utility in a State if, before the enactment of this
subsection--
`(1) the State has implemented for such utility the standard concerned
(or a comparable standard);
`(2) the State regulatory authority for such State or relevant
nonregulated electric utility has conducted a proceeding to consider
implementation of the standard concerned (or a comparable standard) for such
utility; or
`(3) the State legislature has voted on the implementation of such
standard (or a comparable standard) for such utility.'.
(B) CROSS REFERENCE- Section 124 of such Act (16 U.S.C. 2634) is
amended by adding the following at the end thereof: `In the case of each
standard established by paragraph (16) of section 111(d), the reference
contained in this subsection to the date of enactment of the Act shall be
deemed to be a reference to the date of enactment of paragraph
(16).'.
(d) Compliance Date- Section 303 of the Public Utility Regulatory Policies
Act of 1978 is amended by striking `Not later than 2 years after the date of
the enactment of this Act (or after the enactment of the Energy Policy Act of
1992 in the case of standards under paragraphs (3) and (4) of subsection (b))'
and inserting `Not later than 2 years after the date of the enactment of the
standard concerned'.
(e) Prior State Actions- Section 310 of the Public Utility Regulatory
Policies Act of 1978 is amended by striking `of this Act' in each place it
appears and inserting `the standard under section 303(b)'.
SEC. 412. FEED-IN TARIFF SYSTEM STUDY.
(a) Study and Report- Not later than 1 year after the date of enactment of
this Act, the Lawrence Berkeley National Laboratory shall transmit to Congress
a report on the results of a study on feed-in tariff systems, which shall
include recommendations for an appropriate pricing structure to best ensure
that investors in renewable energy technologies can receive a reasonable
return on their investment.
(b) Definition- In this section:
(1) The term `feed-in tariff system' means a system under which--
(A) renewable energy technologies have priority access to the
electricity market; and
(B) for a fixed period of time, electric utilities are required to pay
predetermined amounts for electric power sold to the utility by producers
using renewable energy sources.
(2) The term `renewable energy' has the meaning given to such term in
section 203 of the Energy Policy Act of 2005.
(c) Authorization of Appropriations- There are authorized to be
appropriated such sums as are necessary to carry out this report.
Subtitle C--National Renewable Energy Zones
SEC. 421. NEW ELECTRICITY TRANSMISSION LINES DESIGNED PRIMARILY TO CARRY
ELECTRICITY FROM RENEWABLE ENERGY RESOURCES.
The Secretary of the Treasury, in consultation with the Secretary of
Energy, the Secretary of Commerce, and the Administrator of the Environmental
Protection Agency, shall establish an appropriate investment tax credit for
the construction of new electricity transmission lines designed primarily to
carry electricity from renewable energy resources. Such credit shall be
sufficient to encourage the development of promising rural renewable energy
domestic resources that otherwise would likely not be developed.
SEC. 422. SHORT TITLE.
This title may be cited as the `Rural Clean Energy Superhighways Act'.
SEC. 423. FINDINGS.
The Congress finds that--
(1) electricity produced from renewable resources helps to reduce
greenhouse gas emissions, and limits emissions of other pollutants regulated
pursuant to the Clean Air Act, enhances national energy security, and
provides substantial economic benefits;
(2) the potential exists for a far greater percentage of electric
production in the United States to be generated through the use of renewable
resources than current levels;
(3) many of the best potential renewable energy resources are located in
rural areas far from population centers;
(4) the lack of adequate electric transmission capacity is one of the
primary obstacles to the development of electric generation facilities
fueled by renewable energy resources;
(5) the economies of many rural areas would substantially benefit from
the increased development of electric generation facilities fueled by
renewable energy resources; and
(6) it is in the national interest for the Federal government to
implement policies that will enhance the amount of electric transmission
capacity available to take full advantage of renewable energy resources to
generate electricity.
SEC. 424. NATIONAL RENEWABLE ENERGY ZONES.
(a) In General- Title II of the Federal Power Act (16 U.S.C. 824 et seq.)
is amended--
(1) by inserting before the section heading of section 201 (16 U.S.C.
824 et seq.) the following:
`SUBTITLE A--REGULATION OF ELECTRIC UTILITY COMPANIES'; AND
(2) by adding at the end the following:
`Subtitle B--National Renewable Energy Zones
`SEC. 231. DEFINITIONS.
`(1) The term `Commission' means the Federal Energy Regulatory
Commission.
`(2) The term `electricity from renewable energy'means electric energy
generated fromX
`(A) solar, wind, geothermal or ocean energy;
`(B) biomass (as defined in section 203(a) of the Energy Policy Act of
2005);
`(D) incremental hydropower.
`(3) The term `Federal Power Marketing Administration' means any agency
or instrumentality of the United States (other than the Tennessee Valley
Authority) which sells electric energy.
`(4) The term `Federal Transmitting Utility' means a Federal Power
Marketing Administration that owns or operates electric transmission
facilities or the Tennessee Valley Authority.
`(5) 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) The term `renewable energy trunkline' shall mean a radial
transmission line at a voltage of 115 kV or above, including all associated
transmission facilities and equipment within a National Renewable Energy
Zone that is used to deliver electricity from renewable energy to the point
where the trunkline connects to a high-voltage electric transmission
facility, including any modifications, additions or upgrades to such
facilities and equipment. A renewable energy trunkline shall not include
network upgrades.
`(7) The term `high-voltage electric transmission facility' means those
electric facilities with a capability in excess of 200 kilovolts.
`(8) The term `network upgrades' shall mean the additions or
modifications to the transmission provider's high-voltage transmission
system other than renewable energy trunkline facilities.
`(9) The term `President' means the President of the United
States.
`(10) The term `Indian lands' means--
`(A) any land within the limits of any Indian reservation, pueblo or
Rancheria,
`(B) any land not within the limits of any Indian reservation, pueblo
or Rancheria title to which was on the date of passage of this Act either
held in trust by the United States for the benefit of any Indian tribe or
individual or held by any Indian tribe or individual subject to
restriction by the United States against alienation,
`(C) any dependent Indian community, and
`(D) any land conveyed to any Alaska Native corporation under the
Alaska Native Claims Settlement Act.
`(11) The term `electricity consuming area' means the area within which
electricity from renewable energy would be consumed if new high-voltage
electric transmission facilities were to be constructed to deliver
electricity from renewable energy generated in a National Renewable Energy
Zone.
`SEC. 232. DESIGNATION OF NATIONAL RENEWABLE ENERGY ZONES.
`(a) Designation- Within six months after the date of enactment of this
Act, the President or the President's designee shall designate as a National
Renewable Energy Zone each area that meets each of the following
conditions:
`(1) The potential to generate in excess of one gigawatt of electricity
from renewable energy without having a material detrimental impact on
reliability.
`(2) An insufficient level of electric transmission capacity to achieve
the potential identified pursuant to paragraph (1).
`(3) Access, for renewable energy to be generated in the National
Renewable Energy Zone, to one or more electricity consuming areas if there
were a sufficient level of transmission capacity.
`(b) Factors- In making the designations required by subsection (a), the
Secretary take into account the following:
`(1) State and Federal requirements for utilities to incorporate
renewable energy as part of serving load; and
`(2) The impact of electric transmission facility development on the
aesthetic and environmental values of land contained in an area eligible for
National Renewable Energy Zone designation.
`(c) Additional Facilities- Within six months of the designation of a
National Renewable Energy Zone, the President or the President's designee
shall identify, and provide public notice of, specific additional high-voltage
electric transmission facilities and other nontransmission alternatives
required to substantially increase the generation of electricity from
renewable energy within each National Renewable Energy Zone.
`(d) Public Views- Before designating an area as a National Renewable
Energy Zone, the President or the President's designee shall afford each
affected State, Indian Tribe and other interested persons a reasonable
opportunity to present their views and recommendations before a designation
shall be effective.
`(e) Expansion- The President or the President's designee shall every
three years after the date of enactment consider whether to expand an existing
National Renewable Energy Zone or designate a new National Renewable Energy
Zone pursuant to the criteria set forth in subsection (a).
`SEC. 233. ENCOURAGING CLEAN ENERGY SUPERHIGHWAY DEVELOPMENT IN NATIONAL
RENEWABLE ENERGY ZONES.
`(a) Cost Recovery- (1) The Commission shall issue and enforce such
regulations as are necessary to ensure that a public utility transmission
provider that finances transmission capacity to transmit electricity from
renewable energy from a National Renewable Energy Zone to an electricity
consuming area after the date of enactment of this subtitle recovers through
its rates for transmission service all costs and a reasonable return on equity
associated with the construction and operation of such new transmission
capacity.
`(2) A regulation under paragraph (1) shall be enforceable in accordance
with the provisions of law applicable to enforcement of regulations under this
Act.
`(b) Alternative Transmission Financing Mechanism- The Commission shall
permit a renewable energy trunkline built by a public utility transmission
provider in a National Renewable Energy Zone to, in advance of generation
interconnection requests, be initially funded through a transmission charge
imposed upon all transmission customers of the transmission provider or, if
the renewable energy trunkline is built in an area served by a regional
transmission organization or independent system operator, all of the
transmission customers of such transmission operator, if the Commission makes
each of the following findings:
`(1) The renewable energy resources that would utilize the renewable
energy trunkline are remote from the grid and load centers.
`(2) The renewable energy trunkline will likely result in multiple
individual renewable energy electric generation projects being developed by
multiple competing developers. The renewable energy trunkline has at least
one project subscribed through an executed generation interconnection
agreement with the transmission provider and has tangible demonstration of
additional interest.
As new electric generation projects are constructed and interconnected to
the renewable energy trunkline, the transmission services contract holder for
such generation project will, on a going forward basis, pay a pro-rata share
of the renewable energy trunkline facility's costs, thus reducing the effect
on the rates of customers of the public utility transmission provider.'.
(b) Transmission Cost Allocation- Section 206 of the Federal Power Act (16
U.S.C. 824e) is amended by adding the following new subsection at the end
thereof:
`(e)(1) Within six months of the date the President designates an area as
a National Renewable Energy Zone, the State utility commissions or other
appropriate bodies having jurisdiction over the public utilities providing
service in the National Renewable Energy Zone or an adjacent electricity
consuming area may jointly propose to the Commission a cost allocation plan
for high-voltage electric transmission facilities built by a public utility
transmission provider that would serve the electricity consuming area.
`(2) The Commission may approve the plan proposed by the States pursuant
to paragraph (1) if, taking into account the users of the transmission
facilities, the plan will result in rates that are just and reasonable and not
unduly discriminatory or preferential and the plan would not unduly inhibit
the development of renewable energy electric generation projects.
`(3) Unless a plan has been approved by the Commission pursuant to
paragraph (2), the Commission shall fairly allocate the costs of new
high-voltage electric transmission facilities built in the area by one or more
public utility transmission providers (recognizing the national and regional
benefits associated with increased access to electricity from renewable
energy) pursuant to a rolled-in transmission charge. nothing in this
subsection shall expand, directly or indirectly, the jurisdiction of the
Commission with respect to any Federal Transmitting Utility.'.
(c) Federal Transmitting Utilities- (1) If no privately or publicly funded
entity commits within one year of the identification required in section
232(c) of the Federal Power Act to finance (either on its own or through a
third party financing arrangement with a Federal Transmitting Utility) a
high-voltage electric transmission facility identified in such notice, a
Federal Transmitting Utility shall finance the construction of the
high-voltage electric transmission facility and operate and maintain such
facility if the Federal Transmitting Utility determines--
(A) the facility would be located within the area in which the Federal
Transmitting Utility is statutorily authorized to construct transmission
facilities;
(B) the facility may be constructed and operated without having a
material detrimental impact on reliability; and
(C) equally effective nontransmission options are
unavailable.
(2)(A) Subject to the availability of appropriated funds, the Department
of Energy is authorized to issue and sell bonds, notes, and other evidence of
indebtedness to the Secretary of Treasury from time to time in an amount not
to exceed $10,000,000,000 outstanding at any one time. The Department of
Energy shall deposit the amounts raised pursuant to this subsection to a
Transmission Fund, which shall be located in the U.S. Treasury.
(B) Amounts deposited in the Transmission Fund shall be available without
further appropriation or fiscal year limitation to a Federal Transmitting
Utility to fund the construction, operation and maintenance of high-voltage
electric transmission facilities authorized by subsection (1). Except as
specified in subparagraph (C), amounts used for construction, operation and
maintenance shall be recovered by the Federal Transmitting Utility and repaid
to the Transmission Fund over a period of 50 years.
(C) If a Federal Transmitting Utility determines that revenue from users
of the high-voltage electric transmission facility may not be sufficient to
recover its costs over time, it may set a transmission rate for its use
separate from rates charged for the use of the Federal Transmitting Utility's
other transmission facilities. In such event, power and transmission customers
of the Federal Transmitting Utility shall not be liable for the costs of the
high-voltage transmission facility except for the amount of transmission
capacity such customers utilize as determined by each Federal Transmitting
Utility. Any amounts that cannot be so recovered from such separate rate over
a period of 50 years shall not be required to be repaid by the Federal
Transmitting Utility to the Transmission Fund in the United States
Treasury.
(3) The regulations promulgated pursuant to this Act shall, to the maximum
extent practicable, ensure that not less than 75 percent of the capacity of
any high-voltage electric transmission line constructed by a Federal
transmitting utility pursuant to this section is used for electricity from
renewable energy.
SEC. 425. FEDERAL POWER MARKETING ADMINISTRATIONS AND TVA.
(a) Promotion of Renewable Energy and Energy Efficiency- The Western Area
Power Administration, the Southeastern Area Power Administration, the
Southwestern Area Power Administration and the Tennessee Valley Authority
shall each identify and, to the extent economically feasible and not
inconsistent with other statutory obligations, take steps to promote energy
conservation and renewable energy electric resource development in the regions
served by such utility.
(b) Acquisition of Renewable Energy and Renewable Energy Credits- Each
Federal Power Marketing Administration and the Tennessee Valley Authority may,
subject to advance payment arrangements by the Federal Government being in
place that assure the Federal Power Marketing Administration is held
financially harmless for its actions pursuant to this section, use its
purchasing power to acquire on behalf of the Federal government electricity
from renewable energy and renewable energy credits in sufficient amounts to
meet the requirements of section 203 of the Energy Policy Act of 2005. The
Federal agencies on behalf of which a Federal Power Marketing Administration
or the Tennessee Valley Authority acquires renewable energy or renewable
energy credits shall fully reimburse the Federal Power Marketing
Administration or the Tennessee Valley Authority for such transactions.
(c) Tribal Renewable Energy- Each Federal Power Marketing Administration
and the Tennessee Valley Authority shall identify opportunities for promoting
the development of facilities generating electricity from renewable energy on
Indian lands.
(d) Nonreimbursable Funds- The amounts expended by a Federal Power
Marketing Administration or the Tennessee Valley Authority pursuant to this
section shall not be subject to reimbursement by the customers of such
utility.
SEC. 426. CONSISTENCY WITH ENVIRONMENTAL LAWS.
Nothing in this Act shall be deemed to waive any existing Federal or State
environmental protection provision, including the requirements of--
(1) the National Forest Management Act of 1976 (16 U.S.C. 472a et
seq.);
(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);
(3) the National Environmental Policy Act of 1969 (42 U.S.C. 4231 et.
seq.);
(4) the Federal Water Pollution Control Act of 1969 (33 U.S.C. 1251 et .
seq.); and
(5) the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701
et seq.).
Subtitle D--Net Metering
SEC. 431. ESTABLISHING MINIMUM NET METERING AND INTERCONNECTION
STANDARDS.
(a) Findings- The Congress finds that it is in the public interest to:
(1) Enable small businesses, residences, schools, churches, farms with
small electric generation units, and other retail electric customers who
generate electric energy to return or sell surplus electric energy on the
open market.
(2) Encourage private investment in renewable and alternate energy
resources.
(3) Stimulate the economic growth.
(4) Enhance the continued diversification section of energy resources
used in the United States.
(5) Remove regulatory barriers for net metering.
(b) Net Metering and Interconnection Standards- Section 113 of the Public
Utility Regulatory Policies Act of 1978 is amended by adding the following new
subsections at the end thereof:
`(1) DEFINITIONS- As used in this subsection:
`(A) The term `customer-generator' means the owner or operator of a
qualified generation unit.
`(B) The term `net metering' means measuring the difference between
the electricity supplied to a customer-generator and the electricity
generated by a customer-generator that is delivered to a local
distribution section system at the same point of interconnection during an
applicable billing period and providing an energy credit to a
customer-generator in the form of a kilowatt-hour credit for each
kilowatt-hour of energy produced by a customer-generator from a qualified
generation unit.
`(C) The term `qualified generation unit' means an electric energy
generation unit that meets each of the following requirements:
`(i) The unit is a fuel cell or uses as its energy source either
solar, wind, biomass, geothermal, anaerobic digestion or landfill gas,
or a combination of the foregoing.
`(ii) The unit has a generating capacity of not more than 1,000
kilowatts.
`(iii) The unit is located on premises that are owned, operated,
leased, or otherwise controlled by the customer-generator.
`(iv) The unit operates in parallel with the retail electric
supplier.
`(v) The unit is intended primarily to offset part or all of the
customer-generator's requirements for electric energy.
`(D) The term `retail electric supplier' means any electric utility
that sells electric energy to the ultimate consumer thereof.
`(E) The term `local distribution system' means any system for the
distribution section of electric energy to the ultimate consumer thereof,
whether or not the owner or operator of such system is also a retail
electric supplier.
`(2) ADOPTION- Not later than one year after the enactment of this
subsection, each State regulatory authority (with respect to each electric
utility for which it has ratemaking authority), and each nonregulated
electric utility, shall provide public notice and conduct a hearing
respecting the standards established by paragraph (3) and, on the basis of
such hearing, shall adopt such standard.
`(3) ESTABLISHMENT OF NET METERING STANDARD- Each retail electric
supplier shall offer to arrange (either directly or through a local
distribution company or other third party) to make net metering available,
on a first-come-first-served basis, to each of its retail customers in
accordance with the provisions of this subsection and each of the following
requirements:
`(A) Rates and charges and contract terms and conditions for the sale
of electric energy to customer-generators shall be the same as the rates
and charges and contract terms and conditions that would be applicable if
the customer-generator did not own or operate a qualified generation unit
and use a net metering system.
`(B) Each retail electric supplier shall notify all of its retail
customers of the standard established under this paragraph upon adoption
of such standard.
`(4) NET ENERGY MEASUREMENT- Each retail electric supplier shall arrange
to provide to customer-generators who qualify for net metering under
subsection (b) an electrical energy meter capable of net metering and
measuring the flow of electricity either to or from the customer and using a
single meter and single register, except where it is not practical to do so.
Where it is not practical to provide the meter to the customer-generator,
the retail electric supplier (either directly or through a local
distribution company or other third party) shall, at its own expense,
install one or more of such electric energy meters for the
customer-generator concerned.
`(5) BILLING- Each retail electric supplier subject to subsection (b)
shall calculate the electric energy consumption for a customer using a net
metering system in the following manner:
`(A) The retail electric supplier shall measure the net electricity
produced or consumed during the billing period using the metering
installed as provided in paragraph (4).
`(B) If the electricity supplied by the retail electric supplier
exceeds the electricity generated by the customer-generator during the
billing period, the customer-generator shall be billed for the net
electric energy supplied by the retail electric supplier in accordance
with normal billing practices
`(C)(i) If electric energy generated by the customer-generator exceeds
the electric energy supplied by the retail electric supplier, the
customer-generator shall be billed for the appropriate customer charges
for that billing period and credited for the excess electric energy
generated during the billing period, with this credit appearing as a
kilowatt-hour credit on the bill for the following billing period. The
kilowatt-hour credits shall be applied to customer-generator electric
energy consumption on the following billing period bill (except for a
billing period that ends in the next calendar year). At the beginning of
each calendar year, any remaining unused kilowatt-hour credits shall be
extinguished.
`(ii) Except as provided in this clause, if the customer-generator is
using a meter and retail billing arrangement that has time differentiated
rates, (a `time-of-use meter'), the kilowatt-hour credit shall be based on
the ratio representing the difference in retail rates for each time of use
rate or the credits shall be shown on the customer-generator's bill as a
monetary credit reflecting retail rates at the time of generation of the
electric energy by the customer-generator. Notwithstanding the standard
established under section 11(d)(14), the supplier may require, at the
supplier's option, the customer-generator with net metering to take
electric service under a non-time differentiated energy rate tariff or
service that it offers to customers in the same rate class as the
customer-generator.
`(6) PERCENT LIMITATIONS-
`(A) TWO PERCENT LIMITATION- The standard established under this
subsection shall not apply for a calendar year in the case of a
customer-generator served by a local distribution company when the total
generating capacity of all customer-generators with net metering systems
served by that local distribution company in that calendar year is equal
to or in excess of 2 percent of the capacity necessary to meet the local
distribution company's average forecasted aggregate customer peak demand
for that calendar year.
`(B) ONE PERCENT LIMITATION- The standard established under this
subsection shall not apply for a calendar year in the case of a
customer-generator served by a local distribution company when the total
generating capacity of all customer-generators with net metering systems
served by that local distribution company in that calendar year using a
single type of qualified generation units (as listed in paragraph
(1)(C)(i)) is equal to or in excess of 1 percent of the capacity necessary
to meet the company's average forecasted aggregate customer peak demand
for that calendar year.
`(C) RECORDS AND NOTICE- - Each retail electric supplier shall
maintain, and make available to the public, records of the total
generating capacity of customer-generators of such system that are using
net metering, the type of generating systems and energy source used by the
electric generating systems used by such customer-generators. Each such
retail electric supplier shall notify the State regulatory authority and
the Federal Energy Regulatory Commission when the total generating
capacity of such customer-generators is equal to or in excess of the
limitations set forth in subparagraph (B).
`(7) OWNERSHIP OF CREDITS- For purposes of Federal and State laws
providing renewable energy credits or greenhouse gas credits, the
customer-generator with a qualified generating unit and net metering shall
be treated as owning and having title to the renewable energy attributes,
renewable energy credits and greenhouse gas emission credits related to any
electricity produced by the qualified generating unit. No retail electric
supplier shall claim title to or ownership of any renewable energy
attributes, renewable energy credits or greenhouse gas emission credits of
the customer-generator as a result of interconnecting the customer-generator
or providing or offering the customer-generator net metering.
`(8) SAFETY AND PERFORMANCE STANDARDS- (A) A qualified generation unit
and net metering system used by a customer-generator shall meet all
applicable safety and performance and reliability standards established by
the national electrical code, the Institute of Electrical and Electronics
Engineers, Underwriters Laboratories, or the American National Standards
Institute.
`(B) The Commission shall, after consultation with State regulatory
authorities and nonregulated local distribution systems and after notice and
opportunity for comment, prohibit by regulation the imposition of additional
charges by electric suppliers and local distribution systems for equipment
or services for safety or performance that are additional to those necessary
to meet the standards and requirements referred to in subparagraph (A) of
this paragraph and subsection (e) of this section (relating to
interconnection).
`(9) DETERMINATION OF COMPLIANCE- Any State regulatory authority (with
respect to each electric utility for which it has ratemaking authority), and
each nonregulated electric utility may apply to the Commission for a
determination that any State net metering requirement or regulations
complies with the requirements of this subsection. In the absence of such a
determination, the Commission, on its own motion or pursuant to the petition
of any interested person, may, after notice and opportunity for a hearing on
the record, issue an order requiring against any retail electric supplier or
local distribution company, or both, to require compliance with this
subsection. Any person who violates any requirement of this subsection or
any order of the Commission under this subsection shall be subject to civil
penalties in the amount of $10,000 for each day that such violation
continues. Such penalties may be assessed by the Commission, after notice
and opportunity for hearing, in the same manner as penalties are assessed
under section 31(d) of the Federal Power Act.
`(e) Interconnection Standards-
`(1) DEFINITIONS- For purposes of this subsection, the terms defined in
subsection (d) shall apply.
`(2) MODEL STANDARDS- (A) Within one year after the enactment of this
subsection the Commission shall publish model standards for the physical
connection between local distribution systems and qualified generation units
and electric generation units that meet the requirements of subsection
(d)(1)(C) other than clause (ii) thereof and that do not exceed 20,000
kilowatts of capacity. Such model standards shall be designed to encourage
the use of qualified generation units and to ensure the safety and
reliability of such units and the local distribution systems interconnected
with such units.
`(B) The model standards shall have two separate expedited procedures
for interconnecting qualified generation units up to 15 kilowatts and a
separate standard that expedites interconnection for qualified generation
units up to 2000 kilowatts. Such expedited procedures shall be based on
those best practices among the States that have adopted interconnection
standards. In designing such expedited procedures, the Commission shall
consider Interstate Renewable Energy Council Model Rule MR-I2005.
`(C) Within 2 years after the enactment of this subsection, each State
shall adopt the model standards published under this paragraph, with or
without modification, and submit such standards to the Commission for
approval. The Commission shall approve a modification of the model standards
only if the Commission determines that such modification is consistent with
or superior to the purpose of such standards and is required by reason of
local conditions.
`(D) If standards have not been approved under this paragraph by the
Commission for any State within 2 years after the enactment of this
subsection, the Commission shall, by rule or order, enforce the Commission's
model standards in such State until such time as State standards are
approved by the Commission.
`(E) Within two years after the enactment of this subsection, and after
notice and opportunity for comment, the Commission shall publish an update
of such model standards, considering changes in the underlying standards and
technologies. Such updates shall be made available to State regulatory
authorities for their consideration.
`(3) SAFETY, RELIABILITY, PERFORMANCE, AND COST- The standards under
this section shall establish those measures for the safety and reliability
of the affected equipment and local distribution systems as may be
appropriate. Such standards shall be consistent with all applicable safety
and performance standards established by the national electrical code, the
Institute of Electrical and Electronics Engineers, Underwriters
Laboratories, or the American National Standards Institute yet constitute
the minimum cost and technical burdens to the interconnecting customer
generator as the Commission shall, by rule, prescribe.
`(4) ADDITIONAL CHARGES- The model standards under this subsection
prohibit the imposition of additional charges by local distribution systems
for equipment or services for interconnection that are additional to those
necessary to meet such standards and that are in excess of the charges and
equipment requirements identified in the best practices of states with
interconnection standards.
`(5) RELATIONSHIP TO EXISTING LAW REGARDING INTERCONNECTION- Nothing in
this subsection affects the application of section 111(d)(15) relating to
interconnection.
`(6) CONSUMER FRIENDLY CONTRACTS- The Commission shall promulgate
regulations insuring that simplified contracts will be used for the
interconnection of electric energy by electric energy transmission or
distribution systems and generating facilities that have a power production
capacity not greater than 2000 kilowatts and shall consider the best
practices for consumer friendly contracts adopted by States or national
associations of state regulators. Such contracts shall not require liability
or other insurance in excess of what is typically carried by
customer-generators for general liability.
`(7) ENFORCEMENT- Any person who violates any requirement of this
subsection shall be subject to civil penalties in the amount of $10,000 for
each day that such violation continues. Such penalties may be assessed by
the Commission, after notice and opportunity for hearing, in the same manner
as penalties are assessed under section 31(d) of the Federal Power
Act.'.
(c) Relationship to State Law- Section 117 of the Public Utility
Regulatory Policies Act of 1978 is amended by striking `Nothing' and inserting
`(1) Except as provided in paragraph (2), nothing' and by adding the following
at the end thereof:
`(2) No State or nonregulated utility may adopt or enforce any standard or
requirement concerning net metering or interconnection that restricts access
to the electric power transmission or distribution system by qualified
generators beyond those standards and requirements identified in section
113(d). Nothing in this Act shall preclude a State from adopting or enforcing
incentives or requirements to encourage qualified generation and net metering
that are additional to or equivalent to those required under section 113(d) or
that afford greater access to the electric power transmission and distribution
system by qualified generators as defined in section 113(d) or afford greater
compensation or credit for electricity generated by such generators.'.
SEC. 432. RETAIL ELECTRIC AND GAS UTILITY EFFICIENCY POLICIES.
(a) In General- The Public Utility Regulatory Policies Act of 1978 is
amended by adding the following after section 609:
`SEC. 610. EFFICIENCY RESOURCE STANDARDS FOR RETAIL ELECTRICITY AND NATURAL
GAS DISTRIBUTORS.
`(a) Definitions- In this section:
`(1) BASE QUANTITY- The term `base quantity', with respect to a retail
electricity or natural gas distributor, means the total quantity of electric
energy or natural gas delivered by the retail electricity or natural gas
distributor to retail customers during the most recent calendar year for
which information is available.
`(2) COMBINED HEAT AND POWER SYSTEM- The terms `combined heat and power
system' and `CHP system' mean a system that--
`(A) uses the same energy source for the simultaneous or sequential
generation of electrical power, mechanical power, or both, in combination
with the generation of steam or other forms of useful thermal energy
(including heating and cooling applications);
`(B) produces at least 20 percent of its total useful energy in the
form of thermal energy, and at least 15 percent of its total useful energy
in the form of electrical or mechanical power (or a combination
thereof);
`(C) except for systems designed for operation on cellulosic biomass
fuel, has a marginal net heat rate of no more than 7,500 Btu/kWh,
calculated on a higher heating value basis;
`(D) is designed for continuous operation; and
`(E) if generating electricity provides such electricity primarily for
use for a facility or group of facilities located near the point where the
electricity is generated, and from which net wholesale sales of
electricity are not in excess of 50 percent of total annual
generation.
`(3) CUSTOMER FACILITY- The term `customer facility' means an end-use
consumer of electricity or natural gas served by a retail electricity or
natural gas distributor.
`(4) DEEMED SAVINGS- The term `deemed savings' means an estimate of the
average per unit savings from installation of specific common energy
efficiency measures. Deemed savings estimates shall be based on field
studies or billing analyses of savings at a sample of sites where the
specific measure is installed.
`(5) ELECTRIC AND NATURAL GAS SAVINGS CORPORATION - The term `Electric
and Natural Gas Savings Corporation ' means the corporation certified
pursuant to subsection (d)(7)(C).
`(6) ELECTRICITY- (A) The term `electricity savings' means any of the
following:
`(i) Reductions in end-use electricity consumption achieved by a
customer facility relative toX
`(I) consumption at the same facility in a base year, as defined in
rules issued by the Secretary;
`(II) in the case of replacement of equipment at the end of its life
or of new equipment that does not replace existing equipment,
consumption of new equipment of average efficiency, as defined in rules
issued by the Secretary; or
`(III) in the case of a new facility, consumption at a reference
facility, as defined in rules issued by the Secretary.
`(ii) Reductions in distribution system losses of electricity achieved
by a retail electricity distributor relative to losses attributable to new
or replacement distribution system equipment of average efficiency, as
defined in rules issued by the Secretary.
`(iii) Any combination of the foregoing.
`(B) The reductions referred to in subparagraph (A) may be due
to--
`(i) energy efficiency measures, including demand response measures
that result in improved energy efficiency;
`(ii) combined heat and power systems as calculated under subparagraph
(D);
`(iii) recycled energy; or
`(iv) in the case of distribution system losses, upgraded distribution
transformers, upgraded electrical connectors, high temperature
superconductors, or other measures to reduce such losses as specified in
rules issued by the Secretary.
`(C) The reductions in end-use electricity consumption at a customer
facility shall be reduced on a Btu basis by the Btu equivalent of any
associated increases in fuel consumption at such facility. The conversion of
any such fuel consumption increase to an equivalent amount of electricity on
a Btu basis shall be determined by the Secretary based on the average heat
rate of central station generation in the region (accounting for average
transmission and distribution losses in the region), as determined in rules
issued by the Secretary.
`(D) For a combined heat and power (CHP) system, the electricity savings
shall be the electricity and mechanical power generated by the CHP system
net of fuel used by the system, where the fuel used is the product
of--
`(i) the electricity and mechanical power generated by the CHP
system;
`(ii) the net-effective heat rate for the CHP system; and
`(iii) the inverse of the average heat rate of central station
generation in the region, taking into consideration avoided transmission
and distribution losses resulting from on-site generation as determined
under subparagraph (C).
`(7) NATURAL GAS SAVINGS- (A) The term `natural gas savings'
means--
`(i) reductions in end-use natural gas consumption achieved by a
customer facility relative to--
`(I) consumption at the same facility in a base year, as defined in
rules issued by the Secretary;
`(II) in the case of replacement of equipment at the end of its life
or of new equipment that does not replace existing equipment,
consumption of new equipment of average efficiency, as defined in rules
issued by the Secretary; or
`(III) in the case of a new facility, consumption at a reference
facility, as defined in rules issued by the Secretary;
`(ii) reductions in leakage, operational losses, and gas fuel
consumption in the operation of a gas distribution system achieved by a
retail gas distributor relative to such losses in a base year, as defined
in rules issued by the Secretary; or
`(iii) any combination of the foregoing.
`(B) The natural gas savings may be due to--
`(i) energy efficiency measures;
`(ii) recycled energy; or
`(iii) in the case of gas distribution system losses, technologies and
practices as specified in rules issued by the Secretary including measures
recommended for gas distribution systems by the Natural Gas STAR Program
administered by the Environmental Protection Agency.
`(C) The reductions in natural gas consumption shall be reduced on a Btu
equivalent basis by any associated increases in the consumption of
electricity or other substitute fuels by a customer facility or a natural
gas distributor, as determined under rules issued by the Secretary. The
conversion of any such increase in the consumption of electricity or other
fuels to an equivalent amount of natural gas consumption on a Btu basis
shall be determined by the Secretary based on the average heat rate of
central station electric generation in the region and average transmission
and distribution losses in the region, as determined under rules issued by
the Secretary.
`(8) NET EFFECTIVE HEAT RATE- The term `net effective heat rate' means a
ratio, the numerator of which is the higher heating value of the increment
of fuel required by a CHP system to produce electricity and mechanical
power, over and above the fuel that would be required to produce the
equivalent thermal output of the CHP system by a system without power
generation, expressed in British thermal units, and the denominator of which
is the power output of the CHP system, expressed in kilowatt-hours.
`(9) PERFORMANCE STANDARD- The term `performance standard' means the
performance standard for energy savings established under subsection
(b).
`(10) RECYCLED ENERGY- The term `recycled energy' means electrical or
mechanical power, or both, or thermal energy produced by modifying an
industrial or commercial system that was in place prior to January 1, 2007,
such that the modified system--
`(A) recaptures energy that would otherwise be wasted from sources,
including--
`(i) waste heat from industrial processes, natural gas compressor
stations, and other sources;
`(ii) pressure in a fluid or gas system including but not limited to
steam, natural gas, and water; and
`(iii) blast furnace, coke oven, carbon black, and petrochemical
process waste gas, or pollution control projects, including thermal
oxidizers and gas flares; and
`(B) uses equipment and technologies including--
`(i) back-pressure turbines in parallel with existing
pressure-reducing valves in steam, water and gas systems;
`(ii) organic Rankine, Stirling, or Kalina cycle heat engine systems
driven by waste heat; or
`(iii) heat recovery steam generators with steam turbine generators
that recover waste heat.
`(11) RETAIL ELECTRICITY OR NATURAL GAS DISTRIBUTOR- The term `retail
electricity or natural gas distributor' means a person (including a Federal,
State, or local entity) that--
`(A) distributes electric energy or natural gas to consumers in the
United States for a calendar year, including electricity or natural gas
supplied by unregulated suppliers, regardless of whether such suppliers
are affiliated or unaffiliated with the distributor; and
`(B) sold not less than 800,000 megawatt-hours of electric energy or 1
billion cubic feet of natural gas to consumers in the United States for
purposes other than resale during the preceding calendar year.
For purposes of this paragraph, electricity or natural gas sold at
wholesale to large end-use customers shall be included but natural gas sold
to wholesale electric generators to generate electric power for resale shall
not be not included.
`(b) Performance Standard-
`(1) IN GENERAL- Each retail electricity or natural gas distributor
shall undertake electricity and natural gas savings measures in each
calendar year beginning with 2009 that produce electricity and natural gas
savings as a percentage of the distributor's base quantity at the applicable
rate specified in paragraph (5).
`(2) SAVINGS- The savings described in paragraph (1) shall represent
savings realized in the specified year from measures implemented in that
year and all preceding years beginning with 2007.
`(3) LIMITS- Savings from combined heat and power systems, recycled
energy, and electricity or natural gas distribution system measures may be
used by a distributor to satisfy no more than 50 percent of the applicable
savings specified for any year in the table contained in paragraph
(5).
`(4) COMPLIANCE- (A) Each retail electricity or natural gas distributor
subject to this subsection may use any electricity or natural gas savings
measures available to the distributor to achieve compliance with the
performance standard established under this section, on the condition that
the electricity and natural gas savings achieved by such measures are
calculated and verified pursuant to the rules issued under subsection
(c).
`(B) A retail electricity or natural gas distributor may demonstrate
compliance with the performance standard through the accumulation
ofX
`(i) electricity or natural gas savings credits achieved by such
electricity or natural gas distributor and certified under clause (i) of
subsection (d)(2)(A);
`(ii) electricity or natural gas savings credits obtained by purchase
under subsection (d)(6);
`(iii) electricity or natural gas savings credits borrowed against
future years under subsection (d)(7); or
`(iv) any combination of credits described in clauses (i), (ii), and
(iii).
`(5) APPLICABLE RATES- (A) The applicable rates referred to in paragraph
(1) are as follows:
------------------------------------------------------
`Year Electricity Savings (%) Natural Gas Savings (%)
------------------------------------------------------
2009 0.25 0.20
2010 0.75 0.50
2011 1.50 0.80
2012 2.25 1.15
2013 3.00 1.50
2014 4.00 2.00
2015 5.00 2.50
2016 6.00 3.00
2017 7.00 3.50
2018 8.00 4.00
2019 9.00 4.50
2020 10.00 5.00
------------------------------------------------------
`(B) At least 2 years before the beginning of any year after 2020, the
Secretary, after notice and opportunity for comment, shall set the
applicable rate, taking into consideration the economic and environmental
benefits of the energy savings and the cost of the savings measures.
`(c) Determination of Compliance Rules- Not later than 1 year after the
date of enactment of this section, the Secretary shall issue rules that
describe the means to be used to calculate and verify compliance with the
performance standard that include each of the following:
`(1) Procedures and standards for defining and measuring electricity
savings and natural gas savings from customer facility end-uses and from
utility distribution systems that occur in a calendar year (including
measures implemented in previous calendar years beginning in 2007). At a
minimum, these procedures and standards shall--
`(A) specify the types and categories of efficiency measures that will
be eligible for certification under subsection (d)(2);
`(B) require that energy consumption estimates for customer facilities
or portions thereof in the base and current years be adjusted, when
appropriate, to account for changes in weather, level of production, and
building area;
`(C) allow energy consumption estimates from discrete processes and
equipment within industrial facilities in the base and current years to be
adjusted for factors identified by rule that may be responsible for
significant year-to-year changes;
`(D) allow energy consumption estimates from discrete processes and
equipment within industrial facilities in the base and current years to be
adjusted for factors identified by rule that may be responsible for
significant year-to-year changes;
`(E) account for the useful life of energy saving measures;
`(F) include deemed savings values for commonly-used efficiency
measures and make provision for such values to be periodically reviewed
and revised;
`(G) minimize the chances that more than one entity will claim credit
for the same savings; and
`(H) exclude savings that--
`(i) are attributable to measures or systems installed before
January 1, 2007, or to modifications of processes or systems undertaken
prior to January 1, 2007;
`(ii) are otherwise required by Federal, State, local, or Indian
tribal law or regulation;
`(iii) are achieved without the intervention of the electricity or
natural gas distributor or of any other entity seeking credits under
paragraph (2)(A)(ii) of , except as provided under subsection
(e);
`(iv) are attributable to Federal, State, or local tax incentives,
grants, loans, or other public financial support for energy efficiency
measures; or
`(v) have already been credited under this section to another
entity.
`(2) Procedures and standards for verification of electricity or natural
gas savings reported by retail electricity and natural gas distributors. At
a minimum, such procedures and standards shall--
`(A) provide for periodic spot checks on a sample of sites to verify
that measures are in place and functioning;
`(B) provide that savings estimates are calibrated with billing
analysis or end-use metering on a sample of sites where technically
feasible and economically justified; and
`(C) provide for the protection of customers' proprietary information
against unwarranted disclosure.
`(3) Requirements for the content and format of a biennial report from
each retail electricity or natural gas distributor demonstrating the
compliance of the distributor with the performance standard, including a
detailed description of the calculation of electricity and natural gas
savings to enable the appropriate regulatory authority to verify and enforce
compliance with the requirements of this section (including regulations
issued under this section).
`(4) Provision for reviewing and revising the electricity and natural
gas consumption of reference facilities and of new equipment of average
efficiency at intervals of not greater than 4 years.
`(d) Credit and Trading System-
`(1) ESTABLISHMENT- Not later than one year after the date of enactment
of this section, and after consultation with the Administrator of the
Environmental Protection Agency, the Secretary shall issue rules
establishing a nationwide credit and credit trading system for electricity
and natural gas savings.
`(A) IN GENERAL- In accordance with the rules issued under paragraph
(1), the Secretary
`(i) shall certify as credits, electricity and natural gas savings
achieved by a retail electricity or natural gas distributor in a given
calendar year if the savings comply with the rules issued under
subsection (c)(1);
`(ii) shall certify as credits, customer electricity and natural gas
savings undertaken by State agencies and other entities if--
`(I) a retail electricity or natural gas distributor did not help
finance measures to achieve these savings; and
`(II) the savings comply with the rules issued under subsection
(c); and
`(iii) shall not award credits to any retail electricity or natural
gas distributor subject to State administration and enforcement under
subsection (g) unless the Secretary has determined that the
administration and enforcement are at least equivalent to administration
and enforcement by the Secretary.
`(B) AMOUNT OF CREDITS- A credit certified by the Secretary under this
subsection--
`(i) shall equal 1,000 kilowatt-hours, in the case of an electricity
savings credit; or
`(ii) shall equal 10 therms, in the case of a natural gas savings
credit.
`(3) TREATMENT OF CREDITS-
`(A) USE OF CREDITS- A credit may be counted toward compliance with
the performance standard only once.
`(B) PROPERTY RIGHTS- An electricity or natural gas savings credit
certified under this subsection shall not be considered to be a property
right.
`(C) REDUCTION AND TERMINATION OF CREDITS- Nothing in this section or
any other provision of the law limits the authority of the United States
to reduce or terminate a credit certified under this subsection.
`(A) IN GENERAL- To receive certification of an electricity or natural
gas savings credit under this section, the recipient of the credit shall
pay a fee, calculated by the Secretary, in an amount that is equal to the
lesser of the following:
`(i) The administrative costs of issuing, recording, monitoring the
sale or exchange, and tracking, of the credit.
`(ii) For the years 2009 and 2010, 5 percent of the fair market
value of the credit, as determined by the Secretary, and for the years
2011 and thereafter, 3 percent of the fair market value of the credit,
as determined by the Secretary.
`(B) USE OF FEES BY SECRETARY- Subject to annual appropriation, the
Secretary shall use amounts equivalent to the fees paid under this
paragraph to pay administrative costs described in subparagraph (A)(i). If
receipts exceed the administrative costs incurred by the Secretary in any
two consecutive fiscal years, the Secretary shall, not later than January
1 of the first fiscal year thereafter, reduce the fee
accordingly.
`(5) CREDIT SALE AND USE-
`(A) SALE- A retail electric or natural gas distributor may sell a
credit certified under this subsection to any other entity, and other
entities may sell such credit to a retail electric or natural gas
distributor or any other entity, in accordance with accounting and
verification procedures contained in rules issued by the Secretary under
paragraph (1).
`(B) USE- A credit certified under this subsection and sold under
subparagraph (A) may be used by a purchasing retail electricity or natural
gas distributor for purposes of complying with the performance
standard.
`(C) DURATION OF VALIDITY- A credit certified under this subsection
may only be used for compliance with this section for 3 years from the
date issued.
`(6) CREDIT BORROWING- (A) During the first year covered by the
performance standard, a retail electricity or natural gas distributor that
has reason to believe that the distributor will not have sufficient
electricity or natural gas savings credits to comply with the performance
standard may--
`(i) submit a plan to the Secretary demonstrating that the retail
electricity or natural gas distributor will earn or acquire sufficient
credits within the subsequent 2 calendar years that would enable the
retail electricity or natural gas distributor to meet the performance
standard for all three calendar years; and
`(ii) upon the approval of the plan by the Secretary, apply credits
expected to be earned or acquired within the subsequent 2 calendar years
to meet the performance standard for the applicable calendar
year.
`(B) Any retail electricity or natural gas distributor that has
submitted such a plan shall, by March 31 of the fourth calendar year, submit
to the Secretary the credits necessary to repay all credits borrowed.
`(A) IN GENERAL- An electricity or natural gas distributor may elect
to comply with this section for any calendar year by paying to the
certified Electric and Natural Gas Savings Corporation not later than
March 31 of the following year, a fee of 5 cents per kilowatt-hour or 50
cents per therm, for any portion of the electricity or natural gas savings
credit the distributor would otherwise be obligated to achieve for the
year.
`(B) USE OF BUYOUT FEES- The Electric and Natural Gas Savings
Corporation shall--
`(i) deposit fees received under subparagraph (A) in an escrow
account established by the Corporation; and
`(ii) periodically distribute amounts in the escrow account to
States requesting such funds for use in creating electricity or natural
gas savings at customer facilities.
States requesting funds from the account established by the
Corporation shall submit specific program proposals, including funds
requested, estimated savings and measure lifetime(s), and estimated cost
per kWh or therm saved. The Corporation shall develop guidelines for these
submissions. The Corporation shall distribute funds based on the following
criteria: Estimated savings per dollar of funds provided from the escrow
account, maximizing consumer opportunities to participate across all
States, and, beginning in year 3, past history of each State in meeting
energy savings and cost-effectiveness targets.
`(C) ELECTRIC AND NATURAL GAS SAVINGS CORPORATION-
`(i) ESTABLISHMENT AND CERTIFICATION- Any person may submit an
application to the Secretary for the establishment and certification of
a not-for-profit corporation, to be known as the Electric and Natural
Gas Savings Corporation, to carry out this paragraph. The Secretary
shall certify the corporation if the Secretary determines that the
corporation has submitted the most qualified application indicating
capability to carry out this paragraph. The Secretary may revoke such
certification at any time for good cause, and in any such case, the
Secretary may accept applications from other persons and certify another
person as the Electric and Natural Gas Savings Corporation.
`(ii) AUTHORITY OF CORPORATION- No person may distribute more than
800,000 megawatt-hours of electric energy or more than 1 billion cubic
feet of natural gas to consumers in the United States for purposes other
than resale in any calendar year, including electricity or natural gas
supplied by unregulated suppliers, regardless of whether such suppliers
are affiliated or unaffiliated with the distributor unless such person
complies with requirements established by the Corporation for the
payment of fees under this paragraph.
`(iii) STATUS OF CORPORATION- The Corporation shall not be treated
as a department, agency, or instrumentality of the United States for any
purpose.
`(iv) BOOKS AND RECORDS- The books and records of the Corporation
shall be available to the public at reasonable hours and under
reasonable conditions, without charge.
`(v) PENALTY- Any person who violates clause (ii) of this
subparagraph shall be subject to a civil penalty to be assessed and
collected by the Secretary in the amount equal to three times the total
of the fees which are due and payable to the corporation under this
paragraph.
`(e) Enforcement of Compliance-
`(1) IN GENERAL- If a State regulatory authority with jurisdiction over
a retail electricity or natural gas distributor notifies the Secretary that
the State regulatory authority will enforce compliance by the distributor
with the performance standard under this section, the State regulatory
authority shall have the authority to administer and enforce the performance
standard for the distributor under State law.
`(2) AUTHORITY OF SECRETARY- The Secretary shall administer and enforce
the performance standard for all electricity and natural gas distributors
for which a State regulatory authority described in paragraph (1) has not
notified the Secretary as described in that paragraph.
`(3) COMPLIANCE REPORT- Not later that July 1, 2010, and every 2 years
thereafter, each retail electricity and natural gas distributor shall submit
a compliance report conforming to the provisions of the rule described in
subsection (c)(3) to either--
`(A) the appropriate State regulatory authority, if the authority has
notified the Secretary as described in paragraph (1); or
`(A) IN GENERAL- In the case of any retail electricity or natural gas
distributor for which the Secretary is enforcing compliance with the
standards under this section, if the distributor fails to comply with the
performance standard for more than one calendar year, the Secretary
shallX
`(i) determine the number of kilowatt-hours of electricity savings,
or therms of natural gas savings, by which the distributor has fallen
short of meeting the performance standard; and
`(ii) by order, require the distributor, after notice and
opportunity for hearing, to deposit in the escrow account established
under paragraph (8)(B) of subsection (e) an amount equal to 6.0 cents
per kilowatt-hour for each such kilowatt hour, and 60 cents per therm
for each such therm.
`(B) JUDICIAL REVIEW OF ORDERS-
`(i) IN GENERAL- A retail electricity or natural gas distributor
ordered to make a payment under subparagraph (A)(ii) may, not later than
60 days after the date of issuance of the order, bring a civil action in
the United States Court of Appeals for the District of Columbia for
judicial review of the order.
`(ii) REMEDIES- The court specified in clause (i) shall have
jurisdiction to enter a judgment affirming, modifying, or setting aside
an order that is the subject of a civil action brought under that
clause, or remanding the order, in whole or in part, to the
Secretary.
`(f) Information Collection- The Secretary may collect any information
necessary to verify and audit each of the following:
`(1) The annual electric energy sales, natural gas sales, electricity
savings, and natural gas savings of any entity applying for electricity or
natural gas savings credits under this section.
`(2) The validity of electricity or natural gas savings credits
submitted by a retail electricity or natural gas distributor to the
Secretary.
`(3) The quantity of electricity and natural gas sales of all retail
electricity and natural gas distributors.
`(1) IN GENERAL- Nothing in this section supersedes or otherwise affects
any State or local law or regulation requiring or otherwise relating to
electricity or natural gas savings to the extent that the State or local law
or regulation contains more stringent savings requirements or has different
procedures for buyout or penalties than those contained in this
section.
`(2) SITE-SPECIFIC SAVINGS- A State may require the performance standard
for electricity or natural gas savings of any distributor within its
jurisdiction to be achieved by measures undertaken--
`(B) within the service territory of any regional transmission
organization serving the State;
`(C) within any group of States participating in a regional program
for the control of green house gas emissions; or
`(D) within any airshed designated by the State.
`(3) TREATMENT UNDER STATE LAW- A retail electricity or natural gas
distributor that achieves electricity or natural gas savings under this
section in accordance with any State or local savings requirement
specifically applicable to such distributor shall be entitled to full credit
under this section for the savings to the extent that the savings meet the
requirements of this section (including regulations issued under this
section), including measurement, verification, and monitoring
requirements.
`(h) Development of Model Provisions- Not later than 18 months after the
date of enactment of this section, the Federal Energy Regulatory Commission
shall, following public notice and comment, develop and publish model
provisions for adoption by State utility regulatory commissions regarding each
of the following:
`(1) REVENUE STABILITY AND INCENTIVES FOR DISTRIBUTORS- Policies for
rate-setting and return on investment for State-regulated electricity and
natural gas distributors that participate in successful, cost-effective
energy efficiency programs. Such model language shall include provisions for
decoupling the earnings of such regulated entities from full dependence on
the volume of electricity or natural gas distributed by them to customer
facilities. Such model language shall also include provisions for policies
for cost recovery and other financial incentives, such that electric and gas
utility investors are rewarded similarly for similar levels of investment in
customer energy efficiency and in conventional utility assets and that
regulated utilities are encouraged to include end-use efficiency measures
and utility-owned, customer-owned, or third party-owned CHP systems in
electric capacity and transmission and distribution plans.
`(2) NONDISCRIMINATORY IDENTIFICATION OF COST-EFFECTIVE SAVINGS
OPPORTUNITIES- Establishing a public, nondiscriminatory bidding process open
to customers and demand side management service providers to identify
cost-effective electricity or natural gas savings opportunities within a
retail electricity or natural gas distributor's service area. The model
bidding plan shall provide for a distributor to procure all or a portion of
its proposed savings measures, including measures proposed by the
distributor or its affiliates, in cost-effective rank order. The model plan
shall also address the process that will be used by the distributor to
identify and obtain further electricity or natural gas savings in the event
that insufficient savings are procured through the bid process.
`(3) DEVELOPMENT OF MODEL LANGUAGE ON REVENUE DECOUPLING AND SHAREHOLDER
INCENTIVES IN RATEMAKING POLICIES- Rate-setting and earnings for
State-regulated electricity and natural gas distributors that participate in
successful, cost-effective energy efficiency programs. Such model language
shall include, but not be limited to, recommendations for decoupling the
earnings of such regulated entities from full dependence on the volume of
electricity or natural gas distributed by them to customer facilities. Such
model language shall also include recommendations for policies for cost
recovery and shareholder incentives, such that electric and gas utility
investors are rewarded similarly for similar levels of investment in
customer energy efficiency and in conventional utility assets.
`(i) State Adoption of FERC Model Provisions- Each State utility
regulatory authority shall adopt the model provisions referred to in
subsection (h) in the same manner and subject to the same rules and review as
apply in the case of standards referred to in section 113(b) and 303(b). For
purposes of any provision of title I or III of this Act, the model provisions
referred to in subsection (h) shall be treated as standards under section
113(b) (in the case of State regulated electricity distributors) or 303(b) (in
the case of natural gas distributors), except that in the case of such model
provisions, any reference contained in this Act to the date of enactment of
this Act shall be deemed to be a reference to the date of enactment of this
section. Each such State utility regulatory authority shall adopt the model
provisions not later than 24 months after the date of enactment of this
section in the case of paragraphs (1) and (2) of subsection (h) or 42 months
after such date of enactment in the case of paragraph (3) of subsection
(h)).'.
(b) Table of Contents- The table of contents for title VI of such Act is
amended by adding the following new items at the end thereof:
`Sec. 609. Rural and remote communities electrification grants.
`Sec. 610. Efficiency resource standard for retail electricity and
natural gas distributors.'.
Subtitle E--Renewable Portfolio Standard
SEC. 441. RENEWABLE PORTFOLIO STANDARD.
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:
`SEC. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) Renewable Energy Requirement-
`(1) IN GENERAL- Each electric utility that sells electricity to
electric consumers shall obtain a percentage of the base amount of
electricity it sells to electric consumers in any calendar year from new
renewable energy or existing renewable energy. The percentage obtained in a
calendar year shall not be less than the amount specified in the following
table:
`Calendar Year
Minimum Annual Percentage
2008 through 2011
--5.0
2012 through 2015
--10.0
2016 through 2019
--15.0
2020 through 2030
--20.0.
`(2) MEANS OF COMPLIANCE- An electric utility shall meet the
requirements of paragraph (1) by--
`(A) generating electric energy using new renewable energy or existing
renewable energy;
`(B) purchasing electric energy generated by new renewable energy or
existing renewable energy;
`(C) purchasing renewable energy credits issued under subsection (b);
or
`(D) a combination of the foregoing.
`(b) Renewable Energy Credit Trading Program-
`(1) Not later than January 1, 2008, the Secretary shall establish a
renewable energy credit trading program to permit an electric utility that
does not generate or purchase enough electric energy from renewable energy
to meet its obligations under subsection (a)(1) to satisfy such requirements
by purchasing sufficient renewable energy credits.
`(2) As part of such program the Secretary shall--
`(A) issue renewable energy credits to generators of electric energy
from new renewable energy;
`(B) sell renewable energy credits to electric utilities at the rate
of 1.5 cents per kilowatt-hour (as adjusted for inflation under subsection
(g));
`(C) ensure that a kilowatt hour, including the associated renewable
energy credit, shall be used only once for purposes of compliance with
this section; and
`(D) allow double credits for generation from facilities on Indian
Lands, and triple credits for generation from small renewable distributed
generators (meaning those no larger than 1 megawatt).
`(3) Credits under paragraph (2)(A) may only be used for compliance with
this section for 3 years from the date issued.
`(1) CIVIL PENALTIES- Any electric utility that fails to meet the
renewable energy requirements of subsection (a) shall be subject to a civil
penalty.
`(2) AMOUNT OF PENALTY- The amount of the civil penalty shall be
determined by multiplying the number of kilowatt-hours of electric energy
sold to electric consumers in violation of subsection (a) by the greater of
1.5 cents (adjusted for inflation under subsection (g)) or 200 percent of
the average market value of renewable energy credits during the year in
which the violation occurred.
`(3) MITIGATION OR WAIVER- The Secretary may mitigate or waive a civil
penalty under this subsection if the electric utility was unable to comply
with subsection (a) for reasons outside of the reasonable control of the
utility. The Secretary shall reduce the amount of any penalty determined
under paragraph (2) by an 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 (a).
`(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 of 1954 (42
U.S.C. 6303).
`(d) State Renewable Energy Account Program-
`(1) The Secretary shall establish, not later than December 31, 2008, a
State renewable energy account program.
`(2) All money collected by the Secretary from the sale of renewable
energy credits and the assessment of civil penalties under this section
shall be deposited into the renewable energy account established pursuant to
this subsection. The State renewable energy account shall be held by the
Secretary and shall not be transferred to the Treasury Department.
`(3) Proceeds deposited in the State renewable energy account shall be
used by the Secretary, subject to appropriations, for a program to provide
grants to the State agency responsible for developing State energy
conservation plans under section 362 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) for the purposes of promoting renewable energy
production, including programs that promote technologies that reduce the use
of electricity at customer sites such as solar water heating.
`(4) The Secretary may issue guidelines and criteria for grants awarded
under this subsection. State energy offices receiving grants under this
section shall maintain such records and evidence of compliance as the
Secretary may require.
`(5) In allocating funds under this program, the Secretary shall give
preference--
`(A) to States in regions which have a disproportionately small share
of economically sustainable renewable energy generation capacity; and (B)
to State programs to stimulate or enhance innovative renewable energy
technologies.
`(e) Rules- The Secretary shall issue rules implementing this section not
later than 1 year after the date of enactment of this section.
`(f) Exemptions- This section shall not apply in any calendar year 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; or
`(g) Inflation Adjustment- Not later than December 31 of each year
beginning in 2008, the Secretary shall adjust for inflation the price of a
renewable energy credit under subsection (b)(2)(B) and the amount of the civil
penalty per kilowatt-hour under subsection (c)(2).
`(h) State Programs- Nothing in this section shall diminish any authority
of a State or political subdivision thereof to adopt or enforce any law or
regulation respecting renewable energy, but, except as provided in subsection
(c)(3), no such law or regulation shall relieve any person of any requirement
otherwise applicable under this section. The Secretary, in consultation with
States having such renewable energy programs, shall, to the maximum extent
practicable, facilitate coordination between the Federal program and State
programs.
`(i) Definitions- For purposes of this section:
`(1) BASE AMOUNT OF ELECTRICITY- The term `base amount of electricity'
means the total amount of electricity sold by an electric utility to
electric consumers in a calendar year, excluding--
`(A) electricity generated by a hydroelectric facility (including a
pumped storage facility but excluding incremental hydropower);
and
`(B) electricity generated through the incineration of municipal solid
waste.
`(2) DISTRIBUTED GENERATION FACILITY- The term `distributed generation
facility' means a facility at a customer site.
`(3) EXISTING RENEWABLE ENERGY- The term `existing renewable energy'
means, except as provided in paragraph (7)(B), electric energy generated at
a facility (including a distributed generation facility) placed in service
prior to the date of enactment of this section from solar, wind, or
geothermal energy; ocean energy; biomass (as defined in section 203(a) of
the Energy Policy Act of 2005); or landfill gas.
`(4) 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).
`(5) 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 annual kilowatt hours produced at such 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 such 7-year period.
`(B) SPECIAL RULE- A facility described in subparagraph (A) which was
placed in service at least 7 years before the date of enactment of this
section shall commencing with the year in which such 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 not to exceed 30 percent.
`(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means
additional energy generated as a result of efficiency improvements or
capacity additions made on or after the date of enactment of this section or
the effective date of an existing applicable State renewable portfolio
standard program at a hydroelectric facility that was placed in service
before that date. The term does not include additional energy generated as a
result of operational changes not directly associated with efficiency
improvements or capacity additions. Efficiency improvements and capacity
additions shall be measured on the basis of the same water flow information
used to determine a historic average annual generation baseline for the
hydroelectric facility and certified by the Secretary or the Federal Energy
Regulatory Commission.
`(7) NEW RENEWABLE ENERGY- The term `new renewable energy' means--
`(A) electric energy generated at a facility (including a distributed
generation facility) placed in service on or after January 1, 2003,
from--
`(i) solar, wind, or geothermal energy or ocean energy;
`(ii) biomass (as defined in section 203(a) of the Energy Policy Act
of 2005);
`(iv) incremental hydropower; and
`(B) for electric energy generated at a facility (including a
distributed generation facility) placed in service prior to the date of
enactment of this section--
`(i) the additional energy above the average generation in the 3
years preceding the date of enactment of this section at the facility
from--
`(I) solar or wind energy or ocean energy;
`(II) biomass (as defined in section 203(a) of the Energy Policy
Act of 2005);
`(IV) incremental hydropower.
`(ii) the incremental geothermal production.
`(8) OCEAN ENERGY- The term `ocean energy' includes current, wave,
tidal, and thermal energy.
`(j) Sunset- This section expires on December 31, 2030.'.
Subtitle F--Marine and Hydrokinetic Renewable Energy
Promotion
SEC. 451. SHORT TITLE.
This subtitle may be cited as the `Marine and Hydrokinetic Renewable
Energy Promotion Act of 2007'.
SEC. 452. DEFINITION.
For purposes of this subtitle, the term `marine and hydrokinetic renewable
energy' means electrical energy from--
(1) waves, tides, and currents in oceans, estuaries, and tidal
areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels, including projects that
utilize nonmechanical structures to accelerate the flow of water for
electric power production purposes; and
(4) differentials in ocean temperature (ocean thermal energy
conversion).
The term shall not include energy from any source that utilizes a dam,
diversionary structure, or impoundment for electric power production purposes,
except as provided in paragraph (3).
SEC. 453. RESEARCH AND DEVELOPMENT.
(a) Program- The Secretary of Energy, in consultation with the Secretary
of Commerce and the Secretary of the Interior, shall establish a program of
marine and hydrokinetic renewable energy research focused on--
(1) developing and demonstrating marine and hydrokinetic renewable
energy technologies;
(2) reducing the manufacturing and operation costs of marine and
hydrokinetic renewable energy technologies;
(3) increasing the reliability and survivability of marine and
hydrokinetic renewable energy facilities;
(4) integrating marine and hydrokinetic renewable energy into electric
grids;
(5) identifying opportunities for cross fertilization and development of
economies of scale between offshore wind and marine and hydrokinetic
renewable energy sources;
(6) identifying, in consultation with the Secretary of Commerce and the
Secretary of the Interior, the environmental impacts of marine and
hydrokinetic renewable energy technologies and ways to address adverse
impacts, and providing public information concerning technologies and other
means available for monitoring and determining environmental impacts;
and
(7) standards development, demonstration, and technology transfer for
advanced systems engineering and system integration methods to identify
critical interfaces.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
$50,000,000 for each of the fiscal years 2008 through 2017.
SEC. 454. ADAPTIVE MANAGEMENT AND ENVIRONMENTAL FUND.
(a) Findings- The Congress finds that--
(1) the use of marine and hydrokinetic renewable energy technologies can
avoid contributions to global warming gases, and such technologies can be
produced domestically;
(2) marine and hydrokinetic renewable energy is a nascent industry;
and
(3) the United States must work to promote new renewable energy
technologies that reduce contributions to global warming gases and improve
our country's domestic energy production in a manner that is consistent with
environmental protection, recreation, and other public values.
(b) Establishment- The Secretary of Energy shall establish an Adaptive
Management and Environmental Fund, and shall lend amounts from that fund to
entities described in subsection (f) to cover the costs of projects that
produce marine and hydrokinetic renewable energy. Such costs include design,
fabrication, deployment, operation, monitoring, and decommissioning costs.
Loans under this section may be subordinate to project-related loans provided
by commercial lending institutions to the extent the Secretary of Energy
considers appropriate.
(c) Reasonable Access- As a condition of receiving a loan under this
section, a recipient shall provide reasonable access, to Federal or State
agencies and other research institutions as the Secretary considers
appropriate, to the project area and facilities for the purposes of
independent environmental research.
(d) Public Availability- The results of any assessment or demonstration
paid for, in whole or in part, with funds provided under this section shall be
made available to the public, except to the extent that they contain
information that is protected from disclosure under section 552(b) of title 5,
United States Code.
(1) IN GENERAL- The Secretary of Energy shall require a recipient of a
loan under this section to repay the loan, plus interest at a rate of 2.1
percent per year, over a period not to exceed 20 years, beginning after the
commercial generation of electric power from the project commences. Such
repayment shall be required at a rate that takes into account the economic
viability of the loan recipient and ensures regular and timely repayment of
the loan.
(2) BEGINNING OF REPAYMENT REQUIRED- No repayments shall be required
under this subsection until after the project generates net proceeds. For
purposes of this paragraph, the term `net proceeds' means proceeds from the
commercial sale of electricity after payment of project-related costs,
including taxes and regulatory fees that have not been paid using funds from
a loan provided for the project under this section.
(3) TERMINATION- Repayment of a loan made under this section shall
terminate as of the date that the project for which the loan was provided
ceases commercial generation of electricity if a governmental permitting
authority has ordered the closure of the facility because of a finding that
the project has unacceptable adverse environmental impacts, except that the
Secretary shall require a loan recipient to continue making loan repayments
for the cost of equipment, obtained using funds from the loan that have not
otherwise been repaid under rules established by the Secretary, that is
utilized in a subsequent project for the commercial generation of
electricity.
(f) Adaptive Management Plan- In order to receive a loan under this
section, an applicant for a Federal license or permit to construct, operate,
or maintain a marine or hydrokinetic renewable energy project shall provide to
the Federal agency with primary jurisdiction to issue such license or permit
an adaptive management plan for the proposed project. Such plan shall--
(1) be prepared in consultation with other parties to the permitting or
licensing proceeding, including all Federal, State, municipal, and tribal
agencies with authority under applicable Federal law to require or recommend
design or operating conditions, for protection, mitigation, and enhancement
of fish and wildlife resources, water quality, navigation, public safety,
land reservations, or recreation, for incorporation into the permit or
license;
(2) set forth specific and measurable objectives for the protection,
mitigation, and enhancement of fish and wildlife resources, water quality,
navigation, public safety, land reservations, or recreation, as required or
recommended by governmental agencies described in paragraph (1), and shall
require monitoring to ensure that these objectives are met;
(3) provide specifically for the modification or, if necessary, removal
of the marine or hydrokinetic renewable energy project based on findings by
the licensing or permitting agency that the marine or hydrokinetic renewable
energy project has not attained or will not attain the specific and
measurable objectives set forth in paragraph (2); and
(4) be approved and incorporated in the Federal license or permit.
(g) Sunset- The Secretary of Energy shall transmit a report to the
Congress when the Secretary of Energy determines that the technologies
supported under this subtitle have achieved a level of maturity sufficient to
enable the expiration of the programs under this subtitle. The Secretary of
Energy shall not make any new loans under this section after the report is
transmitted under this subsection.
SEC. 455. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.
The Secretary of Commerce and the Secretary of the Interior shall, in
cooperation with the Federal Energy Regulatory Commission and the Secretary of
Energy, and in consultation with appropriate State agencies, jointly prepare
programmatic environmental impact statements which contain all the elements of
an environmental impact statement under section 102 of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332), regarding the impacts of
the deployment of marine and hydrokinetic renewable energy technologies in the
navigable waters of the United States. One programmatic environmental impact
statement shall be prepared under this section for each of the Environmental
Protection Agency regions of the United States. The agencies shall issue the
programmatic environmental impact statements under this section not later than
18 months after the date of enactment of this Act. The programmatic
environmental impact statements shall evaluate among other things the
potential impacts of site selection on fish and wildlife and related habitat.
Nothing in this section shall operate to delay consideration of any
application for a license or permit for a marine and hydrokinetic renewable
energy technology project.
Subtitle G--Carbon Capture and Sequestration
SEC. 461. CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND
DEMONSTRATION PROGRAM.
(a) Amendments- Section 963 of the Energy Policy Act of 2005 (42 U.S.C.
16293) is amended--
(1) in the section heading, by striking `research and development' and
inserting `and storage research, development, and demonstration';
(A) by striking `research and development' and inserting `and storage
research, development, and demonstration'; and
(B) by striking `capture technologies on combustion-based systems' and
inserting `capture and storage technologies related to energy
systems';
(A) in paragraph (3), by striking `and' at the end;
(B) in paragraph (4), by striking the period at the end and inserting
`; and'; and
(C) by adding at the end the following:
`(5) to expedite and carry out large-scale testing of carbon
sequestration systems in a range of geological formations that will provide
information on the cost and feasibility of deployment of sequestration
technologies.'; and
(4) by striking subsection (c) and inserting the following:
`(c) Programmatic Activities-
`(1) ENERGY RESEARCH AND DEVELOPMENT UNDERLYING CARBON CAPTURE AND
STORAGE TECHNOLOGIES-
`(A) IN GENERAL- The Secretary shall carry out fundamental science and
engineering research (including laboratory-scale experiments, numeric
modeling, and simulations) to develop and document the performance of new
approaches to capture and store carbon dioxide.
`(B) PROGRAM INTEGRATION- The Secretary shall ensure that fundamental
research carried out under this paragraph is appropriately applied to
energy technology development activities and the field testing of carbon
sequestration activities, including--
`(i) development of new or improved technologies for the capture of
carbon dioxide;
`(ii) modeling and simulation of geological sequestration field
demonstrations; and
`(iii) quantitative assessment of risks relating to specific field
sites for testing of sequestration technologies.
`(2) FIELD VALIDATION TESTING ACTIVITIES-
`(A) IN GENERAL- The Secretary shall promote, to the maximum extent
practicable, regional carbon sequestration partnerships to conduct
geologic sequestration tests involving carbon dioxide injection and
monitoring, mitigation, and verification operations in a variety of
candidate geological settings, including--
`(i) operating oil and gas fields;
`(ii) depleted oil and gas fields;
`(iii) unmineable coal seams;
`(iv) saline formations; and
`(v) deep geologic systems that may be used as engineered reservoirs
to extract economical quantities of heat from geothermal resources of
low permeability or porosity.
`(B) OBJECTIVES- The objectives of tests conducted under this
paragraph shall be--
`(i) to develop and validate geophysical tools, analysis, and
modeling to monitor, predict, and verify carbon dioxide
containment;
`(ii) to validate modeling of geological formations;
`(iii) to refine storage capacity estimated for particular
geological formations;
`(iv) to determine the fate of carbon dioxide concurrent with and
following injection into geological formations;
`(v) to develop and implement best practices for operations relating
to, and monitoring of, injection and storage of carbon dioxide in
geologic formations;
`(vi) to assess and ensure the safety of operations related to
geological storage of carbon dioxide; and
`(vii) to allow the Secretary to promulgate policies, procedures,
requirements, and guidance to ensure that the objectives of this
subparagraph are met in large-scale testing and deployment activities
for carbon capture and storage that are funded by the Department of
Energy.
`(3) LARGE-SCALE TESTING AND DEPLOYMENT-
`(A) IN GENERAL- The Secretary shall conduct not less than 7 initial
large-volume sequestration tests for geological containment of carbon
dioxide (at least 1 of which shall be international in scope) to validate
information on the cost and feasibility of commercial deployment of
technologies for geological containment of carbon dioxide.
`(B) DIVERSITY OF FORMATIONS TO BE STUDIED- In selecting formations
for study under this paragraph, the Secretary shall consider a variety of
geological formations across the United States, and require
characterization and modeling of candidate formations, as determined by
the Secretary.
`(4) PREFERENCE IN PROJECT SELECTION FROM MERITORIOUS PROPOSALS- In
making competitive awards under this subsection, subject to the requirements
of section 989, the Secretary shall give preference to proposals from
partnerships among industrial, academic, and government entities.
`(5) COST SHARING- Activities under this subsection shall be considered
research and development activities that are subject to the cost-sharing
requirements of section 988(b).
`(d) Authorization of Appropriations- There are authorized to be
appropriated to carry out this section--
`(1) $90,000,000 for fiscal year 2008;
`(2) $105,000,000 for fiscal year 2009; and
`(3) $120,000,000 for fiscal year 2010.'.
(b) Table of Contents Amendment- The item relating to section 963 in the
table of contents for the Energy Policy Act of 2005 is amended to read as
follows:
`Sec. 963. Carbon capture and storage research, development, and
demonstration program.'.
TITLE V--GREEN WORKFORCE
Subtitle A--Small Manufacturer Assistance
SEC. 501. SMALL MANUFACTURER ASSISTANCE THROUGH HOLLINGS MANUFACTURING
EXTENSION PARTNERSHIP PROGRAM.
(a) In General- Subsection (b) of section 25 of the National Institute of
Standards and Technology Act (15 U.S.C. 278k(b)) is amended by striking `and'
at the end of paragraph (2), by striking the period at the end of paragraph
(3) and inserting `; and', and by adding at the end the following new
paragraph:
`(4) information sharing and planning assistance for small manufacturing
firms in identifying and implementing new green manufacturing
technologies.'.
(b) Authorization of Appropriations- There are authorized to be
appropriated for the assistance described in paragraph (4) of section 25 of
such Act $50,000,000 for fiscal year 2009 and for each fiscal year
thereafter.
Subtitle B--Green Workforce Education Incentives
SEC. 511. NATIONAL GREEN CERTIFICATION STANDARDS.
(a) In General- Not later than 1 year after the date of the enactment of
this Act and every 3 years thereafter, the Environmental Protection Agency,
the Institute of Environmental Health Sciences, National Science Foundation,
and National Oceanic and Atmospheric Administration, in consultation with the
Department of Labor and Education, (hereinafter in this subtitle collectively
referred to as the `Green Certification Standards Board') shall establish the
green workforce standards described in subsection (b).
(b) Green Workforce Standards- The green workforce standards described in
this subsection are standards--
(1) for successfully training individuals in advanced vehicle
manufacturing, alternative fuel vehicle repair and maintenence, energy
technology product development and deployment, and green building design and
construction, and
(2) designed to be applied in determining--
(A) eligibility for grants under sections 512, 513, 514, and 515,
and
(B) whether requirements for instruction in green workforce skills are
met for purposes of determining eligibility for loan forgiveness under
section 428L of the Higher Education Act of 1965.
SEC. 512. ENVIRONMENTALLY LITERATE WORKFORCE GRANT PROGRAM.
(a) In General- The Secretary of Education may make grants, in
consultation with the Green Certification Standards Board, to institutions of
higher education to use for any of the following purposes:
(1) Reducing or eliminating dependency on combustion engines in the
operation of the institution.
(2) Establishing environmental and green energy literacy instruction as
a requirement for an undergraduate degree.
(3) Integrating environmental awareness and sustainability curriculum in
programs of instruction, particularly in business, engineering,
architecture, technology, manufacturing programs.
(4) Conducting professional development programs for faculty in all
disciplines to enable faculty to incorporate environmental and
sustainability content in their courses.
(b) Application Requirement- To be eligible for a grant under this
section, an eligible entity shall prepare and submit to the Secretary an
application at such time, and in such manner, and containing such information
as the Secretary may require.
(c) Eligible Entity- For purposes of this section, the term `eligible
entity' means any institution of higher education that has been deemed
qualified by the Green Certification Standards Board.
(d) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out this
section.
SEC. 513. CARBON NEUTRALITY GRANTS IN INSTITUTIONS OF HIGHER
EDUCATIONS.
(a) In General- The Secretary of Education may make grants, in
consultation with the Green Certification Standards Board, to institutions of
higher education to use for any of the following purposes:
(1) Implementing existing plans to achieve full carbon neutrality in the
operations of the institution.
(2) Disseminating the institution's best practices to achieving full
carbon neutrality.
(3) Providing technical assistance and training to the institution's
surrounding community in achieving full carbon neutrality.
(b) Matching Requirement- A grant made under this section may not exceed
the amount that the institute of higher education receiving the grant
certifies, to the Secretary, will be provided (in cash or in kind) from
non-governmental sources to carry out the purposes for which the grant is
made.
(c) Application Requirement- To be eligible for a grant under this
section, an institution of higher education shall prepare and submit to the
Secretary an application at such time, and in such manner, and containing such
information as the Secretary may require.
(d) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out this
section.
SEC. 514. NATIONAL GREEN RANKING SYSTEM GRANT.
(1) GRANT- The Director of National Institute of Environmental Health
Sciences may make grants, in consultation with the Green Certification
Standards Board, to a qualified entity to develop and implement standards
for a national green ranking system for institutions of higher education
based on the following factors:
(A) Environmental literacy of an institution's graduates.
(B) Availability of programs of instruction in advanced vehicle
manufacturing, alternative fuel vehicle repair and maintenance, energy
technology product development and deployment, green building design and
construction, and other green technology.
(C) Extent of the institution's sustainable and low impact facilities
and operations.
(2) REPORT- Such ranking system must be released not later than 1 year
after the date of the enactment of this Act, and every 3 years thereafter,
and must be made available to the general public and to appropriate
publications and student guides.
(b) Application Requirement- To be eligible for a grant under this
section, an entity shall prepare and submit to the Director an application at
such time, and in such manner, and containing such information as the Director
may require.
(c) Authorization of Appropriations- There are authorized to be
appropriated to the Director such sums as are necessary to carry out this
section.
SEC. 515. GREEN BUILDING AND ZERO-ENERGY HOME DESIGN TRAINING GRANTS.
(1) GRANTS- The Director of National Institute of Environmental Health
Sciences may make grants, in consultation with the Green Certification
Standards Board, to institutions of higher education to use for programs of
instruction which train individuals in any of the following:
(A) Green building design and construction.
(B) Zero-energy home design and construction.
(2) GOAL- It shall be the goal of the grant program to help fund the
training of 10,000 students in the programs of instruction described in
paragraph (1).
(b) Application Requirement- To be eligible for a grant under this
section, an institution of higher education shall prepare and submit to the
Director an application at such time, and in such manner, and containing such
information as the Director may require.
(c) Authorization of Appropriations- There are authorized to be
appropriated to the Director such sums as are necessary to carry out this
section.
SEC. 516. STUDENT LOAN FORGIVENESS FOR GREEN WORKFORCE MEMBERS.
The Higher Education Act of 1965 is amended by inserting after section
428K (20 U.S.C. 1078-11) the following:
`SEC. 428L. LOAN FORGIVENESS FOR GREEN WORKFORCE MEMBERS.
`(1) IN GENERAL- For the purpose of encouraging individuals to enter and
continue employment as green workforce members, the Secretary is authorized,
from the funds appropriated under subsection (h), to forgive, in accordance
with this section, the student loan debt of any new borrower after the date
of enactment of the New Apollo Energy Act of 2007, who--
`(A) is employed as a green workforce member;
`(B) incurred such student loan debt in obtaining instruction in green
workforce skills that complies with the green workforce standards
established under section 511 of the New Apollo Energy Act of 2007;
and
`(C) is not in default on a loan for which the borrower seeks
forgiveness.
`(2) METHOD OF LOAN FORGIVENESS- To provide the loan forgiveness
authorized in paragraph (1), the Secretary is authorized to carry out a
program--
`(A) through the holder of the loan, to assume the obligation to repay
a green loan amount (as determined under subsection (b)) for a loan made
under this part; and
`(B) to cancel a green loan amount (as so determined) for a loan made
under part D of this title.
`(b) Qualified Loan Amounts- The Secretary shall forgive the loan
obligation of the borrower, in accordance with subsection (a)(2), not to
exceed $17,500 in the aggregate, in the following increments:
`(1) For the completion of the first 2 years of employment as a green
workforce member for which the borrower seeks forgiveness under this
section, 20 percent of the borrower's total loan obligation that was
incurred in obtaining instruction in green workforce skills that complies
with the green workforce standards established under section 511 of the New
Apollo Energy Act of 2007, not to exceed $3,500.
`(2) For the completion of the 3rd year of such employment, 20 percent
of such total loan obligation, not to exceed $4,500.
`(3) For the completion of each of the 4th and 5th years of such
employment, 40 percent of such total loan obligation, not to exceed $7,000
for each year.
`(c) Award Basis; Priority-
`(1) AWARD BASIS- The Secretary shall provide forgiveness benefits under
this section on a first-come, first-served basis (subject to paragraph (2))
and subject to the availability of appropriations.
`(2) PRIORITY- The Secretary, in consultation with Green Certification
Standards Board established under section 511 of the New Apollo Energy Act
of 2007, shall establish priorities in providing forgiveness benefits under
this section for a fiscal year by designating a percentage of loans for
green workforce members employed in advanced vehicle manufacturing,
alternative fuel vehicle repair and maintenance, clean energy technology
product development and deployment, or green building construction based on
the national need in each of those areas.
`(d) Qualified Instruction Expenses- To be eligible for forgiveness under
this section, a student loan obligation shall have been incurred to cover all
or a portion the cost of attendance at an eligible institution for one or more
periods of enrollment in a program of instruction that--
`(1) is in a skill required for employment in advanced vehicle
manufacturing, alternative fuel vehicle repair or maintenance, clean energy
technology product development and deployment, or green building
construction, as determined in accordance with regulations prescribed by the
Secretary; and
`(2) complies with the green workforce standards established under
section 511 of the New Apollo Energy Act of 2007.
`(e) Construction- Nothing in this section shall be construed to authorize
the refunding of any repayment of a loan.
`(f) Regulations- The Secretary is authorized to issue such regulations as
may be necessary to carry out the provisions of this section.
`(g) Definitions- In this section:
`(1) GREEN WORKFORCE MEMBER- The term `green workforce member' means an
individual who is qualified to be and is employed in advanced vehicle
manufacturing, alternative fuel vehicle repair and maintenance, clean energy
technology product development and deployment, or green building
construction.
`(2) ADVANCED VEHICLE MANUFACTURING- The term `advanced vehicle
manufacturing' means the manufacturing of --
`(A) any new advanced lean burn technology motor vehicle (as defined
in section 30B(c)(3) of the Internal Revenue Code of 1986):
`(B) any new qualified hybrid motor vehicle (as defined in section
30B(d)(3)(A) of such Code and determined without regard to any gross
vehicle weight rating); or
`(C) any new vehicle that is a light-duty, medium-duty, or heavy-duty
on-road or nonroad vehicle that is propelled by an internal combustion
engine, heat engine, or an electric motor (or any combination thereof) and
an energy storage system using (or capable of using)--
`(i) any combustible fuel;
`(ii) an on-board, rechargeable storage device: and
`(iii) a means of using an off-board source of electricity to
operate the vehicle in intermittent or continuous all-electric
mode.
`(3) ALTERNATIVE FUEL VEHICLE REPAIR AND MAINTENANCE- The term
`alternative fuel vehicle repair and maintenance' means vehicle repair and
maintenance for advanced green technologies --
`(A) to re-equip, expand, or establish any manufacturing facility of
the eligible taxpayer to produce advanced technology motor vehicles or to
produce components used in such vehicles;
`(B) for engineering integration of such vehicles;
`(C) for research and development related to advanced technology motor
vehicles; and
`(D) to repair vehicles that utilize an energy supply or end-use
technology, including a technology using renewable energy sources, that
over its lifecycle and compared to similar technologies in commercial
use--
`(i) emits substantially lower levels of pollutants or greenhouse
gases, or both; and
`(ii) may generate substantially smaller or less toxic (or both)
volumes of solid or liquid waste.
`(4) CLEAN ENERGY TECHNOLOGY PRODUCT DEVELOPMENT AND DEPLOYMENT- The
term `clean energy technology product development and deployment' means the
development and deployment of an energy supply or end-use technology,
including a technology using renewable energy sources, that, over its
lifecycle and compared to similar technologies in commercial use--
`(A) emits substantially lower levels of pollutants or greenhouse
gases, or both; and
`(B) may generate substantially smaller or less toxic (or both)
volumes of solid or liquid waste.
`(5) GREEN BUILDING CONSTRUCTION- The term `green building design and
construction' means building design and construction that uses sustainable
design principles to reduce the use of nonrenewable resources, minimize
environmental impact, and relate people with the natural environment.
`(h) Authorization of Appropriations- There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2008 and each of the 5 succeeding fiscal years.'.
SEC. 517. DEFINITIONS.
(1) The terms `advanced vehicle manufacturing', `alternative fuel
vehicle repair and maintenance', `energy technology product development and
deployment', `green building design and construction' have the meaning given
such terms, respectively, in section 428L of the Higher Education Act of
1965,
(2) The term `institution of higher education' has the meaning given
such term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a)).
TITLE VI--FEDERAL GOVERNMENT LEVERAGE TO MOVE NEW TECHNOLOGIES TO
MARKET
Subtitle A--Incentives for Clean Energy Technology
SEC. 601. NEW ENERGY TECHNOLOGIES COMMISSION.
(a) Establishment- There is established a commission to be known as the
`New Energy Technologies Commission' (hereafter in this section referred to as
the `Commission').
(1) IDENTIFY NEW ENERGY TECHNOLOGIES ELIGIBLE FOR INCENTIVES-
(A) IN GENERAL- The Commission shall oversee--
(i) the identification of--
(I) Apollo Approved energy efficiency technologies;
and
(II) Apollo Approved domestic clean energy production
technologies; that the Commission finds substantially contributes to
the goals of this Act and merits consideration for favorable
incentives by Congress; and
(ii) the identification of criteria and standards for determining
technologies eligible under clause (i) as qualifying energy efficiency
standards used to determine eligibility for the loan guarantees and
grants outlined in this title.
(B) MATTERS TO BE CONSIDERED BY THE COMMISSION- In developing energy
efficiency standards, the Commission shall--
(i) consult with the Environmental Protection Agency program known
as `Energy Star'; and
(ii) focus on technologies manufactured domestically.
(2) REPORT- Not later than one year after the date of enactment of this
Act, and every six months thereafter the Commission shall submit to Congress
a report that contains--
(A) a detailed statement of any technology that qualifies for or
merits the incentives in this title;
(B) recommendations for incentives specifically tailored to be
beneficial to such technologies and any standards that should be defined
in statute to determine eligibility for such benefits; and
(C) recommendations for other legislation, administrative actions, and
voluntary actions necessary to implement such incentives.
(3) APOLLO APPROVED ENERGY TECHNOLOGIES- For purposes of this section,
the term `Apollo Approved energy technologies' means any final unit product
that the Commission finds substantially contributes to the goals of this Act
and merits consideration for favorable incentives by Congress not already
included in this Act.
(4) APOLLO APPROVED DOMESTIC CLEAN ENERGY PRODUCTION TECHNOLOGIES- For
purposes of this section, the term `Apollo Approved domestic clean energy
production technologies' means any domestic energy production technology
that the Commission finds substantially contributes to the goals of this Act
and merits consideration for favorable incentives by Congress not already
included in this Act.
(1) IN GENERAL- The Commission shall be comprised of 11 members.
(2) APPOINTMENTS BY THIS ACT- The following are hereby designated as
members of the Commission:
(A) The Secretary of the Department of Energy, the Director of the
Office of Energy Efficiency and Renewable Energy of the Department of
Energy, or the Administrator of the Energy Information Administration of
the Department of Energy.
(B) The Secretary of the Department of Commerce or designee.
(C) The Secretary of the Department of Treasury or designee.
(D) The Director of the Environmental Protection Agency or
designee.
(3) APPOINTMENTS BY THE SENATE AND HOUSE OF REPRESENTATIVES- Seven
members appointed jointly by the majority leader and minority leader of the
Senate and the Speaker and minority leader of the House of Representatives,
of whom--
(A) 1 shall represent consumer advocacy organizations focusing on
energy issues;
(B) 1 shall represent auto manufacturers;
(C) 1 shall represent the lending community;
(D) 1 shall represent environmental advocacy organizations focusing on
energy issues;
(E) 1 shall represent organized labor;
(F) 1 shall represent small business manufacturers; and
(G) 1 shall represent the energy industry.
(4) DATE OF APPOINTMENTS- The appointment of a member of the Commission
shall be made not later than 30 days after the date of enactment of this
Act.
(5) TERM- A member shall be appointed for 5 year terms.
(d) Powers of Commission-
(1) HEARINGS AND SESSIONS- The Commission may, for the purpose of
carrying out this section, hold hearings, sit and act at times and places,
take testimony, and receive evidence to carry out its duties under
subsection (b). The Commission may administer oaths or affirmations to
witnesses appearing before it.
(2) POWERS OF MEMBERS AND AGENTS- Any member or agent of the Commission
may, if authorized by the Commission, take any action which the Commission
is authorized to take by this section.
(3) OBTAINING OFFICIAL INFORMATION-
(A) REQUIREMENT TO FURNISH- Except as provided in subparagraph (B), if
the Commission submits a request to a Federal department or agency for
information necessary to enable the Commission to carry out this section,
the head of that department or agency shall furnish that information to
the Commission.
(B) EXCEPTION FOR NATIONAL SECURITY- If the head of a Federal
department or agency determines that it is necessary to withhold requested
information from disclosure to protect the national security interests of
the United States, the department or agency head shall not furnish that
information to the Commission.
(4) MAILS- The Commission may use the United States mails in the same
manner and under the same conditions as other departments and agencies of
the United States.
(5) ADMINISTRATIVE SUPPORT SERVICES- Upon the request of the Director,
the Administrator of General Services shall provide to the Commission, on a
reimbursable basis, the administrative support services necessary for the
Commission to carry out this section.
(6) GIFTS AND DONATIONS- The Commission may accept, use, and dispose of
gifts or donations of services or property to carry out this Act, but only
to the extent or in the amounts provided in advance in appropriation
Acts.
(7) CONTRACTS- The Commission may contract with and compensate persons
and government agencies for supplies and services, without regard to section
3709 of the Revised Statutes (41 U.S.C. 5).
(e) Initial Meeting-- The Commission shall hold the initial meeting of the
Commission not later than the earlier of--
(1) the date that is 30 days after the date on which all members of the
Commission have been appointed; or
(2) the date that is 90 days after the date of enactment of this Act,
regardless of whether all members have been appointed.
(f) Chairperson and Vice Chairperson- The Commission shall select a
Chairperson and Vice Chairperson from among the members of the Commission
determined under subsection (c)(2).
(g) Executive Committee- The Commission shall have an executive committee
comprised of any five members of the Commission.
(h) Conflicts of Interest- Each member appointed to the Commission shall
submit a financial disclosure report pursuant to the Ethics in Government Act
of 1978, notwithstanding the minimum required rate of compensation or time
period employed.
(i) Staff Appointment and Compensation- The Chairperson, in consultation
with the Vice Chairperson, in accordance with rules agreed upon by the
Commission, may appoint and fix the compensation of a staff director and such
other personnel as may be necessary to enable the Commission to carry out its
functions, without regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates; except that no rate
of pay fixed under this subsection may exceed the equivalent of that payable
for a position at level V of the Executive Schedule under section 5316 of
title 5, United States Code.
(j) Personnel as Federal Employees-
(1) IN GENERAL- The staff director and any personnel of the Commission
who are employees shall be employees under section 2105 of title 5, United
States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of
that title.
(2) MEMBERS OF COMMISSION- Subparagraph (A) shall not be construed to
apply to members of the Commission.
(k) Detailees- Any Federal Government employee may be detailed to the
Commission without reimbursement from the Commission, and such detailee shall
retain the rights, status, and privileges of his or her regular employment
without interruption.
(l) Consultant Services- The Commission is authorized to procure the
services of experts and consultants in accordance with section 3109 of title
5, United States Code, but at rates not to exceed the daily rate paid a person
occupying a position at level IV of the Executive Schedule under section 5315
of title 5, United States Code.
(m) Member Compensation- Each member of the Commission specified in
subsection (c)(3) may be compensated at a rate not to exceed the daily
equivalent of the annual rate of basic pay in effect for a position at level
IV of the Executive Schedule under section 5315 of title 5, United States
Code, for each day during which that member is engaged in the actual
performance of the duties of the Commission.
(n) Information and Administrative Expenses- The Federal agencies and
members specified in subsection (c)(3) shall provide the Commission such
information and pay such administrative and members expenses as the Commission
requires to carry out this section, consistent with the requirements and
guidelines of the Federal Advisory Commission Act (5 U.S.C. App.).
(o) Travel Expenses- While away from their homes or regular places of
business in the performance of services for the Commission, members of the
Commission shall be allowed travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703 of title 5, United
States Code.
(p) Authorization of Appropriations-
(1) IN GENERAL- There is authorized to be appropriated to the Commission
such sums as may be necessary to carry out this section.
(2) AVAILABILITY- Amounts appropriated under paragraph (1) are
authorized to remain available until expended.
SEC. 602. LOAN GUARANTEES PROGRAM.
(a) In General- The New Energy Technologies Commission shall establish and
carry out loan guarantee and grant programs for investments made in structures
and equipment necessary to produce innovative energy technologies in the
United States, including advanced wind turbines, advanced solar power,
advanced marine, high conductivity transmission lines, advanced geothermal,
energy efficient appliances, fuel efficient cars, and high capacity efficient
airplanes.
(1) APPLICANT ASSURANCES- An applicant for a loan guarantee under this
section shall provide assurances, satisfactory to the Commission,
that--
(A) the project has been subject to a full technical review;
(B) the project is covered by adequate project performance
guarantees;
(C) the project, with the loan guarantee, is economically viable;
and
(D) there is a reasonable assurance of repayment of the guaranteed
loan.
(A) MAXIMUM GUARANTEE- Except as provided in subparagraph (B), a loan
guarantee under this section may be issued for up to 70 percent of the
estimated cost of a project, but may not exceed $500,000,000 for a
project.
(B) ADDITIONAL GUARANTEES-
(i) IN GENERAL- The Commission may issue additional loan guarantees
for a project to cover up to 80 percent of the excess of actual project
cost over estimated project cost but not to exceed 15 percent of the
amount of the original guarantee.
(ii) PRINCIPAL AND INTEREST- Subject to subparagraph (A), the
Commission shall guarantee 100 percent of the principal and interest of
a loan made under subparagraph (A).
(3) EQUITY CONTRIBUTIONS- To be eligible for a loan guarantee under this
section, an applicant for the loan guarantee shall have binding commitments
from equity investors to provide an initial equity contribution of at least
30 percent of the total project cost.
(4) APPROVAL- An application for a loan guarantee under this section
shall be approved or disapproved by the Commission not later than 90 days
after the application is received by the Commission.
(b) Guarantee Fee- The recipient of a loan guarantee under subsection (a)
shall pay the Commission an amount determined by the Commission to be
sufficient to cover the administrative costs of the Commission relating to the
loan guarantee.
(c) Payment of Principal and Interest; Default; Recovery of Losses- (1)
With respect to any loan guaranteed pursuant to this section, the commission
is authorized to enter into a contract to pay the lender for and on behalf of
the borrower the principal and interest charges which become due and payable
on the unpaid balance of such loan if the commission finds--
(A) that the borrower is unable to meet principal and interest charges,
that it is in the public interest to permit the borrower to continue to
pursue the purposes of the project, and that the probable net cost to the
Federal Government in paying such principal will be less than that which
would result in the event of a default; and
(B) that the amount of such principal and interest charges which the
Commission is authorized to pay shall be no greater than the amount of
principal and interest which the borrower is obligated to pay under the loan
agreement shall take such action as may be appropriate to recover the
amounts of such payments (including any payment of principal and interest
under subsection (a)(2)(ii)) from such assets of the defaulting borrower as
are associated with the activity with respect to which the loan was made or
from any other surety included in the terms of the guarantee.
(2) In the event of any default by a qualified borrower on a guaranteed
loan, the Commission is authorized to make payment in accordance with the
guarantee, and the Attorney General.
(d) Full Faith and Credit- The full faith and credit of the United States
is pledged to the payment of all guarantees made under this section. Any such
guarantee made by the Commission shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be incontestable in the hands of
a holder of the guaranteed loan.
(e) Authorization of Appropriations- The aggregate amount of guarantees
under this section for fiscal years 2008 through 2017 shall not exceed
$200,000,000,000.
SEC. 603. GRANT PROGRAM TO CREATE CLEAN ENERGY BUSINESS DISTRICTS.
(a) In General- The Secretary of Energy is authorized to make grants to
units of State government, local government, private, non-profit community
development organizations, and Indian tribe economic development entities for
the purpose of building infrastructure, promoting and marketing centralized
business district developments with a focus on the innovative clean energy
technologies.
(1) CONDITIONS- The Secretary shall issue grants on a competitive basis
for projects that will--
(A) promote job growth and economic development in--
(i) rural communities; or
(ii) economically depressed areas, including inner-city urban
areas;
(B) promote the deployment of innovative clean energy technologies
with broad applications and the potential for export to developing
countries;
(C) create partnerships between private industry and public
institutions;
(D) provide opportunities for the development, demonstration, and
deployment of federally-funded research technologies;
(E) promote smart growth by assuring that projects are located
near--
(i) residential neighborhoods; or
(ii) affordable public transportation.
(b) Authorization of Appropriations- For the purposes of this section
there are authorized to be appropriated to the Secretary $250,000,000 for the
fiscal years 2008 through 2012.
Subtitle B--Clean Energy Exports and International
Investment
SEC. 611. CLEAN ENERGY TECHNOLOGY EXPORTS PROGRAM.
(a) Definitions- In this section:
(1) INTERAGENCY WORKING GROUP- The term `interagency working group'
means the Interagency Working Group on Clean Energy Technology Exports
established under subsection (b).
(2) UNITED STATES CLEAN ENERGY TECHNOLOGY- The term `United States clean
energy technology' means an energy supply or end-use technology, including a
technology using renewable energy sources, that--
(A) over its lifecycle and compared to a similar technology already in
commercial use in developing countries, countries in transition, and other
partner countries--
(i) emits substantially lower levels of pollutants and/or greenhouse
gases; and
(ii) may generate substantially smaller and/or less toxic volumes of
solid or liquid waste; and
(B) consists of manufactured articles, materials, and supplies
produced in the United States substantially all from articles, materials,
or supplies mined, produced, or manufactured in the United States, within
the meaning of the Buy American Act (41 U.S.C. 10a).
(b) Interagency Working Group-
(1) ESTABLISHMENT- Not later than 90 days after the date of enactment of
this section, the Chairman of the White House Council on Environmental
Quality, the Secretary of Energy, the Secretary of Commerce, and the
Administrator of the United States Agency for International Development
shall jointly establish a Interagency Working Group on Clean Energy
Technology Exports. The interagency working group will, in partnership with
industry, focus on opening and expanding energy markets and transferring
clean energy technology generated in the United States to developing
countries, countries in transition, and other partner countries that are
expected to experience, over the next 20 years, the most significant growth
in energy production and associated greenhouse gas emissions, including
through technology transfer programs under the Framework Convention on
Climate Change, other international agreements, and relevant Federal
efforts.
(2) MEMBERSHIP- The interagency working group shall be chaired by the
Chairman of the White House Council on Environmental Quality and shall also
include representatives from--
(A) the Department of Commerce;
(B) the Department of the Treasury;
(C) the Department of Energy;
(D) the Environmental Protection Agency;
(E) the United States Agency for International Development;
(F) the Export-Import Bank;
(G) the Overseas Private Investment Corporation;
(H) the Trade and Development Agency;
(I) the Small Business Administration;
(J) the Office of United States Trade Representative; and
(K) other Federal agencies, as determined by the President.
(3) DUTIES- The interagency working group shall--
(A) analyze technology, policy, and market opportunities for
international development, demonstration, and deployment of clean energy
technology developed in the United States;
(B) investigate issues associated with building capacity to deploy
clean energy technology generated in the United States in developing
countries, countries in transition, and other partner countries,
including--
(i) energy-sector reform;
(ii) creation of open, transparent, and competitive markets for
clean energy technologies;
(iii) availability of trained personnel to deploy and maintain the
technology;
(iv) demonstration and cost-buydown mechanisms to promote first
adoption of the technology; and
(v) to promote sustainable economic development, increase access to
modern energy services, reduce greenhouse gas emissions, and strengthen
energy security and independence in developing countries in partnership
with industry through the deployment of clean energy
technologies;
(C) examine relevant trade, tax, international, and other policy
issues to assess what policies would help open markets and improve United
States clean energy technology exports in support of the following
areas--
(i) enhancing energy innovation and cooperation, including energy
sector and market reform, capacity building, and financing
measures;
(ii) improving energy end-use efficiency technologies, including
buildings and facilities, vehicle, industrial, and co-generation
technology initiatives;
(iii) promoting energy supply technologies, including fossil,
nuclear, and renewable technology initiatives;
(iv) reducing the trade deficit of the United States through the
export of United States energy technologies and technological, project
deployment, and development expertise; and
(v) retaining and creating manufacturing and related service jobs in
the United States;
(D) establish an advisory committee involving the private sector and
other interested groups on the export and deployment of United States
clean energy technology;
(E) monitor each agency's progress towards meeting goals in the 5-year
strategic plan submitted to Congress pursuant to the Energy and Water
Development Appropriations Act, 2001, and the Energy and Water Development
Appropriations Act, 2002;
(F) make recommendations to heads of appropriate Federal agencies on
ways to streamline Federal programs and policies to improve each agency's
role in the international development, demonstration, and deployment of
United States clean energy technology;
(G) make assessments and recommendations regarding the distinct
technological, market, regional, and stakeholder challenges necessary to
carry out the program;
(H) recommend conditions and criteria that will help ensure that
United States funds promote sound energy policies in participating
countries while simultaneously opening their markets and exporting United
States energy technology;
(I) establish methodologies for the measurement, monitoring,
verification, and reporting under subsection (d) of the greenhouse gas
emission impacts of clean energy projects and policies in developing
countries; and
(J) establish a registry that is accessible to the public through
electronic means (including through the Internet) in which information
reported under subsection (d) shall be collected.
(c) Federal Support for Clean Energy Technology Transfer- Notwithstanding
any other provision of law, each Federal agency or Government corporation
carrying out an assistance program in support of the activities of United
States persons and industry partnerships in the environment or energy sector
of a developing country, country in transition, or other partner country shall
support, to the maximum extent practicable, the transfer of United States
clean energy technology as part of that program. Such assistance programs
shall support activities including, but not limited to, financial,
environmental and safety consulting, manufacturing, design and engineering,
financing, and other services rendered by United States persons and industry
partnerships.
(d) Annual Report- Not later than 90 days after the date of the enactment
of this Act, and on March 31 of each year thereafter, the Interagency Working
Group shall submit a report to Congress on its activities during the preceding
calendar year. The report shall include a description of the technology,
policy, and market opportunities for international development, demonstration,
and deployment of United States clean energy technology investigated by the
Interagency Working Group in that year, as well as any policy recommendations
to improve the expansion of clean energy markets and United States clean
energy technology exports.
(e) Authorization of Appropriations- There are authorized to be
appropriated to the appropriate departments, agencies, and entities of the
United States such sums as may be necessary for each of the fiscal years 2008
through 2018 to support the transfer of United States clean energy technology,
consistent with the subsidy codes of the World Trade Organization, as part of
assistance programs carried out by those departments, agencies, and entities
in support of activities of United States persons in the energy sector of a
developing country, country in transition, or other partner country.
SEC. 612. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT PROGRAM.
Section 1608 of the Energy Policy Act of 1992 (42 U.S.C. 13387) is amended
by striking subsection (l) and inserting the following:
`(l) International Energy Technology Deployment Program-
`(1) DEFINITIONS- In this subsection:
`(A) INTERNATIONAL ENERGY DEPLOYMENT PROJECT- The term `international
energy deployment project' means a project to construct an energy
production facility outside the United States--
`(i) the output of which will be consumed outside the United States;
and
`(ii) the deployment of which will result in a greenhouse gas
reduction per unit of energy produced when compared to the technology
that would otherwise be implemented--
`(I) 20 percentage points or more, in the case of a unit placed in
service before January 1, 2010;
`(II) 40 percentage points or more, in the case of a unit placed
in service after December 31, 2009, and before January 1, 2020;
or
`(III) 60 percentage points or more, in the case of a unit placed
in service after December 31, 2019, and before January 1,
2030.
`(B) QUALIFYING INTERNATIONAL ENERGY DEPLOYMENT PROJECT- The term
`qualifying international energy deployment project' means an
international energy deployment project that--
`(i) is submitted by a United States firm to the Secretary and
establishes industry partnerships in accordance with procedures
established by the Secretary by regulation;
`(ii) uses technology or services that have been successfully
developed or deployed in the United States;
`(iii) uses technology or services that consists of manufactured
articles, materials, and supplies produced in the United States
substantially from articles, materials, or supplies mined, produced, or
manufactured in the United States, within the meaning of the Buy
American Act (41 U.S.C. 10a);
`(iv) meets the criteria of subsection (k);
`(v) is approved by the Secretary, with notice of the approval being
published in the Federal Register; and
`(vi) complies with such terms and conditions as the Secretary
establishes by regulation.
`(C) UNITED STATES- For purposes of this paragraph, the term `United
States', when used in a geographical sense, means the 50 States, the
District of Columbia, Puerto Rico, Guam, the Virgin Islands, American
Samoa, and the Commonwealth of the Northern Mariana Islands.
`(2) PILOT PROGRAM FOR FINANCIAL ASSISTANCE-
`(A) IN GENERAL- Not later than 180 days after the date of enactment
of this subsection, the Secretary shall, by regulation, provide for a
pilot program for financial assistance for qualifying international energy
deployment projects.
`(B) SELECTION CRITERIA- After consultation with the Secretary of
State, the Secretary of Commerce, and the United States Trade
Representative, the Secretary shall select projects for participation in
the program based solely on the criteria under this title and without
regard to the country in which the project is located.
`(C) FINANCIAL ASSISTANCE-
`(i) IN GENERAL- A United States firm that undertakes a qualifying
international energy deployment project that is selected to participate
in the pilot program shall be eligible to receive funding support, a
loan, or a loan guarantee from the Secretary.
`(ii) RATE OF INTEREST- The rate of interest of any loan made under
clause (i) shall be equal to the rate for Treasury obligations then
issued for periods of comparable maturities.
`(iii) AMOUNT- The amount of a loan or loan guarantee under clause
(i) shall not exceed 50 percent of the total cost of the qualified
international energy deployment project.
`(iv) DEVELOPED COUNTRIES- Loans or loan guarantees made for
projects to be located in a developed country, as listed in Annex I of
the United Nations Framework Convention on Climate Change, shall require
at least a 50 percent contribution towards the total cost of the loan or
loan guarantee by the host country.
`(v) DEVELOPING COUNTRIES- Loans or loan guarantees made for
projects to be located in a developing country (those countries not
listed in Annex I of the United Nations Framework Convention on Climate
Change) shall require at least a 10 percent contribution towards the
total cost of the loan or loan guarantee by the host
country.
`(vi) CAPACITY BUILDING RESEARCH- Proposals made for projects to be
located in a developing country may include a research component
intended to build technological capacity within the host country. Such
research must be related to the technologies being deployed and must
involve both an institution in the host country and an industry,
university or national laboratory participant from the United States.
The host institution shall contribute at least 50 percent of funds
provided for the capacity building research.
`(I) IN GENERAL- The Secretary, in consultation with the Secretary
of Energy and the Administrator of the United States Agency for
International Development, may, at the request of the United States
ambassador to a host country, make grants to help address and overcome
specific, urgent, and unforeseen obstacles in the implementation of a
qualifying project.
`(II) MAXIMUM AMOUNT- The total amount of a grant made for a
qualifying project under this paragraph may not exceed
$1,000,000.
`(D) COORDINATION WITH OTHER PROGRAMS- A qualifying international
energy deployment project funded under this section shall not be eligible
as a qualifying clean coal technology under section 415 of the Clean Air
Act (42 U.S.C. 7651n).
`(E) REPORT- Not later than 5 years after the date of enactment of
this subsection, the Secretary shall submit to the President a report on
the results of the pilot projects.
`(F) RECOMMENDATION- Not later than 60 days after receiving the report
under subparagraph (E), the President shall submit to Congress a
recommendation, based on the results of the pilot projects as reported by
the Secretary of Energy, concerning whether the financial assistance
program under this section should be continued, expanded, reduced, or
eliminated.
`(3) PERFORMANCE CRITERIA FOR MAJOR ENERGY CONSUMERS-
`(A) IDENTIFICATION OF MAJOR ENERGY CONSUMERS- Not later than 1 year
after the date of enactment of this subsection, the Task Force shall
identify those developing countries that, by virtue of present and
projected energy consumption, represent the predominant share of energy
use among developing countries.
`(B) PERFORMANCE CRITERIA- As a condition of accepting assistance
provided under this section, any developing country identified under
subparagraph (A) shall--
`(i) meet the eligibility criteria established under section 607 of
the Millennium Challenge Act of 2003 (22 U.S.C. 7706), notwithstanding
the eligibility of the developing country as a candidate country under
section 606 of that Act (22 U.S.C. 7705); and
`(ii) agree to establish and report on progress in meeting specific
goals for reduced energy-related greenhouse gas emissions and specific
goals for--
`(I) increased access to clean energy services among unserved and
underserved populations;
`(II) increased use of renewable energy resources;
`(III) increased use of lower greenhouse gas-emitting fossil
fuel-burning technologies;
`(IV) greater reliance on advanced energy
technologies;
`(V) the sustainable use of traditional energy resources;
or
`(VI) other goals for improving energy-related environmental
performance, including the reduction or avoidance of local air and
water quality and solid waste contaminants.
`(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section $500,000,000 for
each of fiscal years 2008 through 2018, to remain available until
expended.'.
Subtitle C--Export-Import Bank
SEC. 621. REQUIRE THE EXPORT-IMPORT BANK OF THE UNITED STATES TO MEET
RENEWABLE ENERGY TARGETS IN ITS LENDING PRACTICES.
(a) Allocation of Assistance Among Energy Projects- Of the total amount
available to the Export-Import Bank of the United States for the extension of
credit for transactions related to energy projects, the Bank shall, not later
than the beginning of fiscal year 2008, use--
(1) not more than 85 percent for transactions related to fossil fuel
projects; and
(2) not less than 15 percent for transactions related to renewable
energy and energy efficiency projects.
(b) Renewable Energy and Technology Commission-
(1) ESTABLISHMENT- Within 1 year after the date of the enactment of this
Act, the Export-Import Bank of the United States (in this subsection
referred to as the `Bank') shall establish a commission which shall be known
as the `Renewable Energy and Technology Commission' (in this subsection
referred to as the `Commission').
(2) FUNCTION- The Commission shall help the Bank achieve the percentage
goal set forth in subsection (a)(2) by the beginning of fiscal year 2008, by
proactively assisting the Bank in identifying new opportunities for
renewable energy and energy efficiency financing.
(3) COMPOSITION- The Commission shall be composed of--
(A) 6 representatives selected by companies involved in renewable
energy and energy efficiency technology;
(B) 2 representatives selected by environmental
organizations;
(C) 2 members of the academic community who are knowledgeable about
renewable energy; and
(D) representatives of the Bank.
(4) REPORTS- The Commission shall submit annually to the Committee on
Natural Resources and the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of
the Senate a report that contains the following information for the fiscal
year covered by the report:
(A) A detailed description of the activities of the
Commission.
(B) Any recommendations made by the Commission that were adopted by
the Bank.
(C) An analysis comparing the level of credit extended by the Bank for
renewable energy and energy efficiency projects with the level of credit
so extended for the preceding fiscal year.
(c) Definition of Renewable Energy and Energy Efficiency Projects- In this
section, the term `renewable energy and energy efficiency projects' means
projects related to solar, wind, biomass, or geothermal energy sources.
SEC. 622. INCREASE IN THE AMOUNT OF FINANCING MADE AVAILABLE BY THE
EXPORT-IMPORT BANK FOR TRANSACTIONS INVOLVING RENEWABLE ENERGY AND ENERGY
EFFICIENCY.
Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)) is amended by adding at the end the following:
`(M)(i) For each fiscal year that begins after the 1-year period that
begins with the date of the enactment of this subparagraph, the Bank shall
make available, from the aggregate loan authority available to the Bank, an
amount to finance transactions directly related to the production of renewable
energy or to energy efficiency, which shall be not less than--
`(I) in the case of the 1st such fiscal year, $200,000,000;
`(II) in the case of each of the 2nd through 6th such fiscal years, 120
percent of the amount made available in accordance with this clause to
finance the transactions for the then preceding fiscal year; and
`(III) in the case of each fiscal year after the 6th such fiscal year,
the amount made available in accordance with this clause to finance the
transactions for such 6th fiscal year.
`(ii) In this Act, the term `renewable energy' means solar energy, wind
energy, energy generated by the use of a fuel cell, geothermal energy, and
less than 10 megawatts of energy generated by hydropower.'.
SEC. 623. OFFICE OF RENEWABLE ENERGY PROMOTION.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is
amended by adding at the end the following:
`(j) Office of Renewable Energy Promotion-
`(1) ESTABLISHMENT- Within 1 year after the date of the enactment of
this subsection, the Bank shall establish an Office of Renewable Energy
Promotion (in this subsection referred to as the `Office') staffed by
individuals with expertise in financing renewable energy technologies.
`(2) FUNCTIONS- The Office shall assist the Bank in complying with
section 2(b)(1)(M) by identifying opportunities to provide financing for
transactions directly related to the production of renewable energy or to
energy efficiency.'.
SEC. 624. REPORT ON EXPORT-IMPORT BANK FINANCING FOR TRANSACTIONS INVOLVING
RENEWABLE ENERGY OR ENERGY EFFICIENCY.
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is
amended by adding at the end the following:
`(g) Financing for Transactions Involving Renewable Energy or Energy
Efficiency- The Bank shall include in its annual report under subsection (a)
of this section--
`(1) a description of the activities of the Office;
`(2) a description of the number of transactions and the amount of
credit extended by the Bank for renewable energy and energy efficiency
technologies, disaggregated by the types of renewable energy specified in
section 2(b)(1)(M)(ii); and
`(3) a comparison between the number and amount referred to in paragraph
(2) for the period covered by the report, and the numbers and amounts
reported for all preceding periods pursuant to this subsection.'.
SEC. 625. REPORT ON EFFECT OF EXPORT-IMPORT BANK FINANCING ON GREENHOUSE GAS
EMISSIONS.
(a) In General- Within 5 years after the date of the enactment of this
Act, the Export-Import Bank of the United States shall prepare and submit to
the Committee on Financial Services of the House of Representatives and the
Committee on Finance of the Senate a report that--
(1) estimates the amount of greenhouse gases emitted annually as a
result of the activities financed by the Bank; and
(2) identifies opportunities to reduce the amount of greenhouse gases
emitted as a result of the activities.
(b) Greenhouse Gas Defined- In subsection (a), the term `greenhouse gas'
means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
perfluorocarbons, sulfur hexafluoride, or any other anthropogenically-emitted
gas that is determined by the Administrator of the Environmental Protection
Agency, after notice and comment, to contribute to global warming to a
non-negligible degree.
Subtitle D--Emerging Clean Energy Technology Venture Capital
Fund
SEC. 631. FINDINGS.
Congress finds the following:
(1) It is in the interests of the United States to promote technologies
that reduce our dependence on fossil fuels.
(2) New and emerging clean energy technologies often fail to achieve
commercial success due to funding shortfalls, often termed `the Valley of
Death', before the technologies attract the necessary private venture
capital funding required for further development.
SEC. 632. ESTABLISHMENT OF FUND.
The Secretary of Energy, using authorities granted to the Secretary of
Defense under section 2371 of title 10, United States Code, shall provide for
the establishment of a nonprofit venture capital investment corporation, to be
known as the Emerging Clean Energy Technology Venture Capital Fund, for the
purpose of making funding available to United States companies for the
development of technologies used--
(1) for the production of renewable energy; or
(2) to improve energy efficiency.
SEC. 633. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of Energy
$100,000,000 for each of the fiscal years 2008 through 2012 for carrying out
this subtitle.
TITLE VII--GREENHOUSE GAS REDUCTIONS
Subtitle A--Global Climate Change
SEC. 701. GLOBAL CLIMATE CHANGE.
(a) In General- The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by
adding at the end the following new title:
`TITLE VIII--GLOBAL CLIMATE CHANGE
`TITLE VIII--GLOBAL CLIMATE CHANGE
`Subtitle A--Stopping and Reversing Greenhouse Gas Emissions
`Sec. 811. Regulations; greenhouse gas emissions limitations.
`Sec. 812. Scientific review of the safe climate level.
`Sec. 813. Required review of emission reductions needed to maintain the
safe climate level.
`Sec. 814. Distribution of allowances between auctions and allocations;
nature of allowances.
`Sec. 815. Auction of allowances.
`Sec. 816. Allocation of allowances.
`Sec. 817. Adaptation assistance.
`Sec. 818. Early reduction credits.
`Sec. 819. Avoiding significant economic harm.
`Sec. 820. Use and transfer of credits.
`Sec. 821. Compliance and enforcement.
`Sec. 822. Equalizing the treatment of domestic and imported industrial
products sold in the United States.
`Subtitle B--Offset Credits
`Sec. 831. Outreach initiative on revenue enhancement for agricultural
producers.
`Sec. 832. Offset measurement for agricultural, forestry, wetlands, and
other land use-related sequestration projects.
`Sec. 833. Offset credits from greenhouse gas emissions reduction
projects.
`Sec. 834. Borrowing at program start-up based on contracts to purchase
offset credits.
`Sec. 835. Review and correction of accounting for offset credits.
`Subtitle C--National Registry for Credits
`Sec. 841. Establishment and operation of national registry.
`Sec. 842. Monitoring and reporting.
`SEC. 801. DEFINITIONS.
`(1) ALLOCATION- The term `allocation', with respect to an allowance,
means the issuance of an allowance directly to covered entities, at no cost,
under this title.
`(2) ALLOWANCE- The term `allowance' means an authorization under this
title to emit 1 metric ton of carbon dioxide (or a carbon dioxide
equivalent), as allocated to a covered entity pursuant to section 816.
`(3) CARBON DIOXIDE EQUIVALENT- The term `carbon dioxide equivalent'
means, with respect to a greenhouse gas, the quantity of the greenhouse gas
that makes the same contribution to global warming as 1 metric ton of carbon
dioxide, as determined by the Administrator.
`(4) COVERED ENTITY- The term `covered entity' means an entity
(including a branch, department, agency, or instrumentality of Federal,
State, or local government) that--
`(A) owns or controls a source of greenhouse gas emissions in the
electric power, industrial, or commercial sector of the United States
economy (as defined in the Inventory), refines or imports products for use
in transportation, or produces or imports hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride; and
`(B) emits, from any single facility owned by the entity, over 10,000
metric tons of greenhouse gas per year, measured in units of carbon
dioxide equivalents, or--
`(i) refines or imports products that, when combusted, will
emit;
`(ii) produces or imports hydrofluorocarbons, perfluorocarbons, or
sulfur hexafluoride that, when used, will emit; or
`(iii) produces or imports other greenhouse gases that, when used,
will emit, over 10,000 metric tons of greenhouse gas per year, measured
in units of carbon dioxide equivalents.
`(A) IN GENERAL- The term `credit' means an authorization under this
title to emit greenhouse gases equivalent to 1 metric ton of carbon
dioxide.
`(B) INCLUSIONS- The term `credit' includes--
`(iii) an early reduction credit; or
`(iv) an international credit.
`(6) EARLY REDUCTION CREDIT- The term `early reduction credit' means a
credit issued under section 818 for a reduction in the quantity of emissions
or an increase in sequestration equivalent to 1 metric ton of carbon
dioxide.
`(7) ELIGIBLE ENTITY- The term `eligible entity' include any entity
determined by the Administrator to be eligible to receive emissions
allowance allocations or the value of such allowances.
`(8) GREENHOUSE GAS AUTHORIZED ACCOUNT REPRESENTATIVE- The term
`greenhouse gas authorized account representative' means, for a covered
entity, an individual who is authorized by the owner and operator of the
covered entity to represent and legally bind the owner and operator in
matters pertaining to this title.
`(9) INDUSTRY SECTOR- The term `industry sector' means any sector of the
economy of a country (including, where applicable, the forestry sector) that
is responsible for significant quantities of greenhouse gas emissions.
`(10) INVASIVE SPECIES- The term `invasive species' means a species
(including pathogens, seeds, spores, or any other biological material
relating to a species) the introduction of which causes or is likely to
cause economic or environmental harm or harm to human health.
`(11) INVENTORY- The term `Inventory' means the Inventory of U.S.
Greenhouse Gas Emissions and Sinks, prepared in compliance with the United
Nations Framework Convention on Climate Change Decision 3/CP.5.
`(12) LAND-GRANT COLLEGES AND UNIVERSITIES- The term `land-grant
colleges and universities' has the meaning given the term in section 1404 of
the National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103).
`(13) LEAKAGE- The term `leakage' means an increase in greenhouse gas
emissions or a decrease in sequestration of greenhouse gases that is--
`(A) outside the area of a project; and
`(B) attributable to the project.
`(14) NATIVE PLANT- The term `native plant' means an indigenous,
terrestrial, or aquatic plant species that evolved naturally in an
ecosystem.
`(15) NEW COVERED ENTITY- The term `new covered entity' means a covered
entity that has operated for not more than 3 years.
`(16) OFFSET CREDIT- The term `offset credit' means a credit issued for
an offset project pursuant to subtitle B certifying a reduction in the
quantity of emissions or an increase in sequestration equivalent to 1 metric
ton of carbon dioxide.
`(17) OFFSET PRACTICE- The term `offset practice' means a practice
that--
`(A) reduces greenhouse gas emissions or increases sequestration;
and
`(B) may be eligible to create an offset credit under this
title.
`(18) OFFSET PROJECT- The term `offset project' means a project that
reduces greenhouse gas emissions or increases sequestration of carbon
dioxide or a carbon dioxide equivalent by a method other than reduction of
greenhouse gas emissions at a covered entity.
`(19) PANEL- The term `Panel' means the Climate Science Advisory Panel
established by this title.
`(20) PLANT MATERIAL- The term `plant material' means--
`(B) a part of a plant; or
`(21) RENEWABLE ENERGY- The term `renewable energy' means electricity
generated from--
`(B) organic waste (excluding incinerated municipal solid
waste);
`(C) biomass (including anaerobic digestion from farm systems and
landfill gas recovery); or
`(D) a hydroelectric, geothermal, solar thermal, photovoltaic, tidal,
wave, or other nonfossil fuel, nonnuclear source.
`(22) RENEWABLE ENERGY ENTITY- The term `renewable energy entity' means
an electric generating entity that exclusively uses renewable energy to
generate electricity for sale.
`(A) IN GENERAL- The term `restoration' means assisting the recovery
of an ecosystem that has been degraded, damaged, or destroyed.
`(B) INCLUSION- The term `restoration' includes the reestablishment in
an ecosystem of preexisting biotic integrity with respect to species
composition and community structure.
`(24) SEQUESTRATION- The term `sequestration' means the separation,
isolation, or removal of greenhouse gases from the atmosphere.
`(25) SEQUESTRATION FLOW- The term `sequestration flow' means the uptake
of greenhouse gases each year from sequestration practices, as calculated
under section 832.
`(26) UNFCCC- The term `UNFCCC' means the United Nations Framework
Convention on Climate Change, done at New York on May 9, 1992.
`Subtitle A--Stopping and Reversing Greenhouse Gas
Emissions
`SEC. 811. REGULATIONS; GREENHOUSE GAS EMISSIONS LIMITATIONS.
`(a) Regulations- Not later than 18 months after the date of enactment of
this title, the Administrator shall promulgate regulations to establish an
allowance trading program to address emissions of greenhouse gases from
covered entities in the United States.
`(b) Greenhouse Gas Emissions Limitations- Not later than 2 years after
the date of enactment of this section, the Administrator shall promulgate
annual emission reduction targets for each calendar year beginning in 2010 and
ending in 2050, as follows:
`(1) In 2010, the quantity of United States greenhouse gas emissions
shall not exceed the quantity of United States greenhouse gases projected to
be emitted in 2009.
`(2) Beginning in 2011, the quantity of United States greenhouse gas
emissions shall be reduced by approximately 2 percent each year, such that
the quantity of such emissions in 2020 does not exceed the quantity of
United States greenhouse gases emitted in 1990.
`(3) Beginning in 2021, the quantity of United States greenhouse gas
emissions shall be reduced by approximately 5 percent each year, such that
the quantity of such emissions in 2050 does not exceed 20 percent of the
quantity of United States greenhouse gases emitted in 1990.
`SEC. 812. SCIENTIFIC REVIEW OF THE SAFE CLIMATE LEVEL.
`(a) Definition and Objective of Maintaining the Safe Climate Level-
`(1) FINDING- Congress finds that ratification by the Senate in 1992 of
the UNFCCC, commitments which were affirmed by the President in 2002,
established for the United States an objective of stabilization of
greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system.
`(2) DEFINITION OF SAFE CLIMATE LEVEL- In this section, the term `safe
climate level' means the climate level referred to in paragraph (1).
`(b) Climate Science Advisory Panel-
`(1) ESTABLISHMENT- Not later than 270 days after the date of enactment
of this title, the Administrator shall establish an advisory panel, to be
known as the `Climate Science Advisory Panel' .
`(2) DUTIES- The Panel shall--
`(A) inform Congress and the Administrator of the state of climate
science;
`(B) not later than December 31, 2010, and not less frequently than
every 4 years thereafter, issue a report that is endorsed by at least 7
members of the Panel that describes recommendations for the Administrator,
based on the best available information in the fields of climate science,
including reports from the Intergovernmental Panel on Climate Change,
relating to--
`(i) the specific concentration, in parts per million, of all
greenhouse gases in carbon dioxide equivalents at or below which
constitutes the safe climate level; and
`(ii) the projected timeframe for achieving the safe climate
level.
`(A) IN GENERAL- The Panel shall be composed of 8 climate scientists
and 3 former Federal officials, as described in subparagraphs (B) through
(D).
`(B) CLIMATE SCIENTISTS- Not later than 270 days after the date of
enactment of this title, the President of the National Academy of Sciences
shall appoint to serve on the Panel 8 climate scientists from among
individuals who--
`(i) have earned doctorate degrees;
`(ii) have performed research in physical, biological, or social
sciences, mathematics, economics, or related fields, with a particular
focus on or link to 1 or more aspects of climate science;
`(iii) have records of peer-reviewed publications that
include--
`(I) publications in main-stream, high-quality scientific journals
(such as journals associated with respected scientific societies or
those with a high impact factor, as determined by the Institute for
Scientific Information);
`(II) recent publications relating to earth systems, and
particularly relating to the climate system; and
`(III) a high publication rate, typically at least 2 or 3 papers
per year; and
`(iv) have participated in high-level committees, such as those
formed by the National Academy of Sciences or by leading scientific
societies.
`(C) RESTRICTION- A majority of climate scientists appointed to the
Panel under subparagraph (B) shall be participating, as of the date of
appointment to the Panel, in active research in the physical or biological
sciences, with a particular focus on or link to 1 or more aspects of
climate science.
`(i) IN GENERAL- Subject to clause (ii), the Administrator shall
appoint as members of the Panel, the longest-serving former
Administrators of the Environmental Protection Agency for each of the 3
most recent former Presidents.
`(ii) TIMING- The 3 most recent former Presidents described in
clause (i) shall be identified as of the deadline for appointments to
the Panel under subparagraph (B) or (E)(ii), whichever is
applicable.
`(iii) SUBSTITUTES- If a former Administrator described in clause
(i) declines appointment, or is unable to serve, as a member of the
Panel, the Administrator shall appoint in place of the former
Administrator--
`(I) the longest-serving former Administrator for the applicable
President who agrees to serve; or
`(II) if no individual described in subclause (I) accepts
appointment as a member of the Panel, the longest-serving Assistant
Administrator for Air and Radiation for the applicable President who
agrees to serve.
`(E) TERMS OF SERVICE AND VACANCIES-
`(i) TERMS- The initial term of a member of the Panel shall
be--
`(I) to the maximum extent practicable, the period covered by, and
extending through the date of issuance of, each report under paragraph
(2)(B); but
`(II) not longer than 4 years.
`(ii) SUBSEQUENT PANELS AND REPORTS- On the issuance of each report
under paragraph (2)(B)--
`(I) the Panel that submitted the report shall terminate;
and
`(II)(aa) pursuant to subparagraphs (B) and (C), the President of
the National Academy of Sciences shall appoint climate scientists
(including at least 3 climate scientists who served as members of the
preceding Panel) to serve as members of a new Panel by not later than
15 months after the deadline for issuance of the report under
paragraph (2)(B); and
`(bb) pursuant to subparagraph (D), the Administrator shall
appoint 3 Federal officials as members of the new Panel by the
deadline described in item (aa).
`(iii) VACANCIES- Vacancies in the membership of the
Panel--
`(I) shall not affect the power of the remaining members to
execute the functions of the Panel; and
`(II) shall be filled in the same manner in which the original
appointment was made.
`(F) CHAIRPERSON AND VICE CHAIRPERSON- The Panel shall elect a
Chairperson and Vice Chairperson as soon as practicable.
`(G) COMPENSATION OF MEMBERS- A member of the Panel 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
Panel.
`(H) TRAVEL EXPENSES- A member of the Panel shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized
for an employee of an agency under subchapter I of chapter 57 of title 5,
United States Code, while away from the home or regular place of business
of the member in the performance of the duties of the Panel.
`(A) IN GENERAL- The Chairperson of the Panel may, without regard to
the civil service laws (including regulations), appoint and terminate an
executive director and such other additional personnel as are necessary to
enable the Panel to perform the duties of the Panel.
`(B) CONFIRMATION OF EXECUTIVE DIRECTOR- The employment of an
executive director shall be subject to confirmation by the Panel.
`(i) IN GENERAL- Except as provided in clause (ii), the Chairperson
of the Panel may fix the compensation of the executive director and
other personnel without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates.
`(ii) EXCEPTION- The rate of pay for the executive director and
other personnel shall not exceed the rate payable for level V of the
Executive Schedule under section 5316 of title 5, United States
Code.
`(D) DETAIL OF FEDERAL GOVERNMENT EMPLOYEES-
`(i) IN GENERAL- An employee of the Federal Government may be
detailed to the staff of the Panel without reimbursement.
`(ii) TREATMENT OF DETAILEES- The detail of the employee shall be
without interruption or loss of civil service status or
privilege.
`(E) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The
Chairperson or executive director of the Panel may procure temporary and
intermittent services in accordance with section 3109(b) of title 5,
United States Code, at rates for individuals that do not exceed the daily
equivalent of the annual rate of basic pay prescribed for level V of the
Executive Schedule under section 5316 of that title.
`(5) HEARINGS- The Panel may hold such hearings, meet and act at such
times and places, take such testimony, and receive such evidence as the
Panel considers advisable to carry out this section.
`(6) INFORMATION FROM FEDERAL AGENCIES-
`(A) IN GENERAL- The Panel may secure directly from a Federal agency
such information as the Panel considers necessary to carry out this
section.
`(B) PROVISION OF INFORMATION- On request of the Chairperson of the
Panel, the head of the agency shall provide the information to the
Panel.
`(7) POSTAL SERVICES- The Panel may use the United States mail in the
same manner and under the same conditions as other agencies of the Federal
Government.
`SEC. 813. REQUIRED REVIEW OF EMISSION REDUCTIONS NEEDED TO MAINTAIN THE
SAFE CLIMATE LEVEL.
`(a) Review and Determination Regarding Reduction Rate- Not later than
December 31, 2015, the Administrator, after providing public notice and
opportunity to comment, shall promulgate a final rule pursuant to which the
Administrator shall review the reduction rate for greenhouse gas emissions
required under section 811 and determine--
`(A) accept the recommendations of the Panel under section 812(b)(2)
regarding the safe climate level and the timeframe for achieving the safe
climate level;
`(B) establish a more stringent safe climate level or timeframe,
together with a detailed explanation of the justification of the
Administrator for rejection of the recommendations of the Panel.
`(b) Modification of Reduction Rate-
`(1) IN GENERAL- If the Administrator makes a determination described in
subparagraph (A) or (B) of subsection (a)(1),the final rule promulgated
pursuant to subsection (a) shall establish a required level of emissions
reductions for each calendar year, beginning with calendar year 2020, based
on the considerations described in paragraph (2).
`(A) PRIMARY CONSIDERATION- In establishing the required level of
emission reductions pursuant to paragraph (1), the Administrator shall
take into consideration primarily the emission reductions necessary to
stabilize atmospheric greenhouse gas concentrations at the safe climate
level within the timeframe specified under section 812(b)(2)(B).
`(B) SECONDARY CONSIDERATIONS- In establishing the required level of
emission reductions pursuant to paragraph (1), in addition to the primary
consideration described in paragraph (2), the Administrator shall take
into consideration--
`(i) technological capability to reduce greenhouse gas
emissions;
`(ii) the progress that foreign countries have made toward reducing
their greenhouse gas emissions;
`(iii) the economic impacts within the United States of implementing
this subtitle, including impacts on the major emitting sectors;
and
`(iv) the economic impacts within the United States of inadequate
action.
`(c) Enforcement Provision-
`(1) IN GENERAL- If the Administrator fails to meet a deadline for
promulgation of any regulation under subsection (a), the Administrator shall
withhold from allocation to covered entities that would otherwise be
entitled to an allocation of allowances under this subtitle a total of 10
percent of the allowances for each covered entity for each year after the
deadline until the Administrator promulgates the applicable
regulation.
`(2) RETURN OF ALLOWANCES- On promulgation of a delayed regulation
described in paragraph (1), the Administrator shall distribute any
allowances withheld under that paragraph--
`(A) among the covered entities from which the allowances were
withheld; and
`(B) in accordance with section 816.
`(d) Subsequent Rulemakings-
`(1) IN GENERAL- Not later than December 31, 2019, and every 4 years
thereafter, the Administrator shall promulgate a new final rule described in
subsection (a) in accordance with this section.
`(2) EFFECTIVE DATE- If a new final rule promulgated pursuant to
paragraph (1) changes a level of emission reductions required under the
preceding final rule, the effective date of the new final rule shall be
January 1 of the calendar year that is 5 years after the deadline for
promulgation of the new final rule under paragraph (1).
`SEC. 814. DISTRIBUTION OF ALLOWANCES BETWEEN AUCTIONS AND ALLOCATIONS;
NATURE OF ALLOWANCES.
`(a) Distribution of Allowances Between Auctions and Allocations-
`(1) IN GENERAL- For each calendar year, the total quantity of
allowances to be auctioned and allocated under this subtitle shall be equal
to the annual tonnage limitation for emissions of greenhouse gases from
covered entities specified in section 811 for the calendar year.
`(2) DISTRIBUTION- The proportion of allowances to be auctioned pursuant
to section 815 and allocated pursuant to section 816 for each calendar year
beginning in calendar year 2010 shall be as follows:
`Percentages of Allowances to Be Auctioned and Allocated
---------------------------------------------------------------------
Calendar year Percentage to be auctioned Percentage to be allocated
---------------------------------------------------------------------
2010 50 50
2011 53 47
2012 56 44
2013 59 41
2014 62 38
2015 65 35
2016 68 32
2017 71 29
2018 74 26
2019 77 23
2020 80 20
2021 83 17
2022 86 14
2023 89 11
2024 92 8
2025 96 4
2026 100 0
---------------------------------------------------------------------
`(b) Nature of Allowances- An allowance--
`(1) shall not be considered to be a property right; and
`(2) may be terminated or limited by the Administrator.
`(c) No Judicial Review- An auction or allocation of an allowance by the
Administrator shall not be subject to judicial review.
`SEC. 815. AUCTION OF ALLOWANCES.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing a
procedure for the auction of the quantity of allowances specified in section
814(a) for each calendar year.
`(b) Deposit of Proceeds- The Administrator shall deposit all proceeds
from auctions conducted under this section in the General Fund of the United
States Treasury.
`SEC. 816. ALLOCATION OF ALLOWANCES.
`(a) Allocations to Covered Entities and Other Eligible Entities-
Beginning with calendar year 2010, the Administrator shall, by regulation,
establish a process for the allocation of free tradeable allowances under this
section that will--
`(1) provide equitable compensation for covered entities subject to
unrecoverable costs resulting from the regulations promulgated under this
title;
`(2) avoid overcompensating covered entities;
`(3) minimize the costs to the government of allocating tradeable
allowances;
`(4) provide incentives for the deployment of new low and zero carbon
energy technologies and energy efficiency upgrades at covered
entities;
`(5) give credit to covered entities for emissions reductions made
before 2010 and registered with the National Registry established in
subtitle C;
`(6) recognize the investments that covered entities and their customers
have made to reduce their energy use and greenhouse gas emissions prior to
enactment of this title; and
`(7) maintain the international competitiveness of United States
manufacturing and avoid the additional loss of United States manufacturing
jobs.
`(b) Allocations to New Covered Entities and New Eligible Entities-
`(1) ESTABLISHMENT- For each calendar year, the Administrator, in
consultation with the Secretary of Energy the Secretary of Commerce, and
with consideration to the allocation factors listed in subsection (a) shall
promulgate regulations establishing--
`(A) a reserve of allowances to be allocated among new covered
entities and new eligible entities for the calendar year; and
`(B) the methodology for allocating those allowances among new covered
entities and new eligible entities.
`(2) LIMITATION- The number of allowances allocated under paragraph (1)
during a calendar year shall be not more than 3 percent of the total number
of allowances allocated among entities for the calendar year.
`(3) UNUSED ALLOWANCES- For each calendar year, the Administrator shall
reallocate to each entity any unused allowances from the new entity reserve
established under paragraph (1) in the proportion that--
`(A) the number of allowances allocated to each entity for the
calendar year; bears to
`(B) the number of allowances allocated to all entities for the
calendar year.
`(c) Total Quantity of Allowances To Be Allocated- For each calendar year,
the quantity of allowances allocated under subsection (a) shall be equal to
the difference between subparagraphs (1) and (2)--
`(1) the allocation percentage in section 814 of the annual limitation
for emissions of greenhouse gases from covered entities specified in section
811 for the calendar year, as modified, if applicable, under section 813;
and
`(2) the quantity of allowances reserved for new covered entities under
subsection (b) for the calendar year.
`(d) Coal-Fired Covered Entities-
`(1) IN GENERAL- Notwithstanding any other provision of this subtitle,
no allowance shall be allocated under this subtitle to a coal-fired covered
entity unless the covered entity--
`(A) is powered by qualifying advanced clean coal technology, as
defined pursuant to paragraph (2); or
`(B) entered operation before January 1, 2007.
`(2) DEFINITION OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY-
`(A) IN GENERAL- Not later than 18 months after the date of enactment
of this title, the Administrator, by regulation, shall define the term
`qualifying advanced clean coal technology' with respect to electric power
generation.
`(B) REQUIREMENT- In promulgating a definition pursuant to
subparagraph (A), the Administrator shall ensure that the term `qualifying
advanced clean coal technology' reflects advances in available technology,
taking into consideration--
`(i) net thermal efficiency;
`(ii) measures to capture and sequester carbon dioxide;
and
`(iii) output-based emission rates for--
`(III) oxides of nitrogen;
`(IV) filterable and condensable particulate matter;
and
`(C) REVIEW AND REVISION-
`(i) IN GENERAL- Not later than July 1, 2009, and each July 1 of
every second year thereafter, the Administrator shall review and, if
appropriate, revise the definition under subparagraph (A) based on
technological advances during the preceding 2 calendar
years.
`(ii) NOTICE AND COMMENT REQUIRED- Subject to clause (iii), after
the initial definition is established under subparagraph (A), no
subsequent review or revision under this subparagraph shall be subject
to the notice and comment provisions of section 307 of this Act or of
section 553 of title 5, United States Code.
`(iii) EFFECT- Nothing in clause (ii) precludes the application of
the notice and comment provisions of section 307 of this Act or of
section 553 of title 5, United States Code, as the Administrator
determines to be practicable.
`SEC. 817. ADAPTATION ASSISTANCE.
`(a) Adaptation Assistance for Workers and Communities Negatively Affected
by Climate Change and Greenhouse Gas Regulation- For each calendar year the
Administrator shall, in consultation with the Secretary of labor and the
Secretary of commerce, provide adaptation assistance for workers and
communities--
`(1) to address local or regional impacts of climate change and the
impacts, if any, from greenhouse gas regulation, including by providing
assistance to displaced workers and disproportionately affected communities;
and
`(2) to mitigate impacts of climate change and the impacts, in any, from
greenhouse gas regulation on low-income energy consumers.
`(b) Adaptation Assistance for Fish and Wildlife Habitat- For each
calendar year, the Administrator shall, in consultation with the United States
Fish and Wildlife Service, the fund efforts to strengthen and restore habitat
that improves the ability of fish and wildlife to adapt successfully to
climate change. The funding made available for such purposes shall be directed
toward the wildlife restoration fund subaccount known as the Wildlife
Conservation and Restoration Account established under section 3 of the
Pittman-Robertson Wildlife Restoration Act (16 U.S.C. 669b). Amounts deposited
in the subaccount under this paragraph shall be available without further
appropriation for obligation and expenditure under that Act.
`(c) There are authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2010 through 2050.
`SEC. 818. EARLY REDUCTION CREDITS.
`(a) Regulations- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations that provide for
the issuance on a 1-time basis, certification, and use of early reduction
credits for greenhouse gas reduction or sequestration projects carried out
during any of calendar years 2000 through 2010.
`(b) Eligible Projects- A greenhouse gas reduction or sequestration
project shall be eligible for early reduction credits if the project--
`(1) is carried out in the United States;
`(2) meets the standards contained in regulations promulgated by the
Administrator under subsection (a) that the Administrator determines to be
applicable to the project, including consistency with the requirements
of--
`(A) paragraphs (2) through (5) of section 836(a), with respect to
greenhouse gas reduction projects; and
`(B) section 832(a), with respect to sequestration projects;
and
`(3) was reported to a State, regional or National registry or was
otherwise accounted for in a manner that the Administrator determines to be
legitimate--
`(A) under section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C.
13385(b)); or
`(B) to a State or regional greenhouse gas registry.
`(1) IN GENERAL- The aggregate quantity of early reduction credits
available for greenhouse gas reduction or sequestration projects for the
period of calendar years 2000 through 2009 shall not exceed 10 percent of
the tonnage limitation for calendar year 2010 for emissions of greenhouse
gases from covered entities under section 811.
`(2) NO OTHER EXCEEDANCE OF TONNAGE LIMITATION- No provision of this
subtitle (other than paragraph (1)) or any regulation promulgated under this
subtitle authorizes the issuance or use of a quantity of credits greater
than the annual tonnage limitation for emissions of greenhouse gases from
covered entities for a calendar year.
`SEC. 819. AVOIDING SIGNIFICANT ECONOMIC HARM.
`(a) In General- Pursuant to the regulations promulgated under this
section, the Administrator may permit covered entities to use allowances in a
calendar year before the calendar year for which the allowances were
allocated.
`(1) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Administrator, in coordination with the Secretary of the
Treasury, shall promulgate regulations requiring the continuous monitoring
of the operation of the carbon market and the effect of that market on the
economy of the United States.
`(2) REQUIREMENTS- The regulations shall--
`(A) establish the criteria for determining whether allowance prices
have reached and sustained a level that is causing or will cause
significant harm to the economy of the United States; and
`(B) take into consideration--
`(i) the obligation of the United States under this subtitle to
stabilize greenhouse gas concentrations in the atmosphere at the safe
climate level; and
`(ii) the costs of the anticipated impacts of climate change in the
United States.
`(3) PREVENTION OF ECONOMIC HARM- If the Administrator determines that
allowance prices have reached and sustained a level that is causing or will
cause significant harm to the economy of the United States, the regulations
shall establish a program under which a covered entity may use allowances in
a calendar year before the calendar year for which the allowances were
allocated, including--
`(A) a requirement that allowances borrowed from the allocation of a
future year reduce the allocation of allowances to the covered entity for
the future year on a 1-to-1 basis;
`(B) a requirement for payment of interest on borrowed allowances
requiring the submission of additional credits upon repayment of the
allowances equal to the product obtained by multiplying--
`(i) the number of years between the advance use of allowances by a
covered entity under clause (i) and the submission of additional credits
under this clause; and
`(ii) the sum obtained by adding--
`(I) the Federal short-term rate, as defined pursuant to section
1274(d)(1)(C)(i) of the Internal Revenue Code of 1986;
and
`(C) a limitation that in no event may a covered entity--
`(i) satisfy more than 10 percent of the obligation of the covered
entity under section 821(a) to surrender allowances by submitting
allowances in a calendar year before the calendar year for which the
allowances were allocated; and
`(ii) use allowances in a calendar year that is more than 3 years
before the calendar year for which the allowances were allocated;
and
`SEC. 820. USE AND TRANSFER OF CREDITS.
`(a) Use in Other Greenhouse Gas Allowance Trading Programs-
`(1) IN GENERAL- A credit obtained under this subtitle may be used in
any other greenhouse gas allowance trading program, including a program of 1
or more States or subdivisions of States, that is approved by the
Administrator and an authorized official for the other program for use of
the allowance.
`(2) RECIPROCITY- A credit obtained from another greenhouse gas trading
program, including a program of 1 or more States or subdivisions of States,
that is approved by the Administrator and an authorized official for the
other program may be used in the trading program under this title.
`(b) Allowance Use Before Applicable Calendar Year- Except as provided in
section 819, an allowance auctioned or allocated under this subtitle may not
be used before the calendar year for which the allowance was auctioned or
allocated.
`(1) IN GENERAL- Except as provided in paragraph (2), the transfer of a
credit shall not take effect until receipt and recording by the
Administrator of a written certification of the transfer that is executed by
an authorized official of the person making the transfer.
`(2) SPECIAL RULE FOR ALLOWANCES- Notwithstanding paragraph (1), the
transfer of an allowance auctioned or allocated under this subtitle may take
effect before the calendar year for which the allowance was auctioned or
allocated.
`(d) Banking of Credits- Any covered entity may use a credit obtained
under this subtitle in the calendar year for which the credit was auctioned or
allocated, or in a subsequent calendar year, to demonstrate compliance with
section 821.
`(e) Limitations on the Use of Offset Credits- The owner of each covered
entity may not satisfy more than 10 percent of the obligation of the covered
entity under section 821(a) by submitting offset credits. The Administrator
may modify the maximum allowable offset credits that a covered entity may use
to demonstrate compliance with section 821(a). In evaluating this
determination, the Administrator shall take into consideration:
`(1) technological capability to reduce greenhouse gas emissions;
and
`(2) the economic impacts within the United States of allowing covered
entities to submit a fewer or greater number of offset credits, including
impacts on the major emitting sectors.
`SEC. 821. COMPLIANCE AND ENFORCEMENT.
`(a) In General- For calendar year 2010 and each calendar year thereafter,
the owner of each covered entity shall surrender to the Administrator a
quantity of credits that is equal to the total tons of carbon dioxide or, with
respect to other greenhouse gases, tons in carbon dioxide equivalent, emitted
by a covered entity during a calendar year.
`(b) Regulations- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing the
procedures for the surrender of credits.
`(c) Penalty- The owner of a covered entity that emits greenhouse gases in
excess of the number of credits that the owner of the covered entity holds for
use of the covered entity for the calendar year shall--
`(1) submit to the Administrator 1.3 credits for each metric ton of
excess greenhouse gas emissions of the covered entity; and
`(2) pay an excess emissions penalty equal to the product obtained by
multiplying--
`(A) the number of tons of carbon dioxide, or the carbon dioxide
equivalent of other greenhouse gases, emitted in excess of the total
quantity of credits held by the covered entity; and
`(B)(i) except as provided in clause (ii), $100, as adjusted for
changes beginning on January 1, 2007, in accordance with the Consumer
Price Index for All-Urban Consumers published by the Department of Labor;
or
`(ii) if the average market price for a metric ton of carbon dioxide
equivalent during a calendar year exceeds $60, $200, as adjusted for
changes beginning on January 1, 2007, in accordance with the Consumer
Price Index for All-Urban Consumers published by the Department of
Labor.
`SEC. 822. EQUALIZING THE TREATMENT OF DOMESTIC AND IMPORTED INDUSTRIAL
PRODUCTS SOLD IN THE UNITED STATES.
`(a) Findings- Congress finds that--
`(1) Greenhouse gas emission reductions from industry sectors are
necessary to protect from dangerous climate change--
`(A) human, animal, and plant life and health in the United States;
and
`(B) the environment in the United States; and
`(2) the environmental and natural resource protections described in
paragraph (1) would be undermined if manufacturing of industry sector
products shifted to locations outside the United States without comparable
limits on greenhouse gas emissions.
`(b) Equalize Treatment for Energy Intensive Products- Not later than
December 31, 2008, the Administrator, in consultation with the United States
Trade Representative, the Secretary of State, and the Secretary of Commerce,
shall consider ways to establish equal treatment, with respect to greenhouse
gas emissions, of domestic and imported industrial products sold in the United
States. Not later than December 31, 2011, the Administrator shall begin to
implement policies and recommend to Congress regulatory mechanisms that would
assure that energy intensive materials sold into United States commerce, of
domestic and foreign origin, are manufactured according to minimum performance
standards with respect to the greenhouse gas emissions produced per ton of
material produced.
`(c) Consultation- In developing policies and recommendations under this
section, the Administrator shall consult with other government entities within
and outside the United States having programs for control of greenhouse gas
emissions from the manufacturing sector.
`(d) Considerations- In developing policies and recommendations under this
section, the Administrator, in consultation with the United States Trade
Representative, the Secretary of State, and the Secretary of Commerce, shall
consider--
`(1) the principle of equal treatment of domestic and imported
industrial products sold in the United States;
`(2) the need to sustain United States natural resources for use by
future generations;
`(3) the distinction between foreign manufacturers from countries with
regulation of greenhouse gases comparable to this title, and foreign
manufacturers from countries without such comparable regulation;
`(4) the obligations of the United States and other countries under
applicable treaties and trade agreements; and
`(5) such other factors as the Administrator, in consultation with the
United States Trade Representative, the Secretary of State, and the
Secretary of Commerce, determines to be relevant and appropriate.
`(e) International Trade Agreements- The United States Trade
Representative shall negotiate trade agreements that are consistent with the
standards regulated under this section.
`Subtitle B--Offset Credits
`SEC. 831. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR AGRICULTURAL
PRODUCERS.
`(a) Purposes- The purposes of this subtitle are to achieve climate
benefits, reduce overall costs to the United States economy, and enhance
revenue for domestic agricultural producers, foresters, and other landowners
by--
`(1) establishing procedures by which domestic agricultural producers,
foresters, and other landowners can measure and report reductions in
greenhouse gas emissions and increases in sequestration; and
`(2) publishing a handbook of guidance for domestic agricultural
producers, foresters, and other landowners to market emission reductions to
companies.
`(b) Establishment- The Secretary of Agriculture, acting through the Chief
of the Natural Resources Conservation Service, the Chief of the Forest
Service, the Administrator of the Cooperative State Research, Education, and
Extension Service, and land-grant colleges and universities, in consultation
with the Administrator and the heads of other appropriate departments and
agencies, shall establish an outreach initiative to provide information to
agricultural producers, agricultural organizations, foresters, and other
landowners about opportunities under this subtitle to earn new revenue.
`(c) Components- The initiative under this section--
`(1) shall be designed to ensure that, to the maximum extent
practicable, agricultural organizations and individual agricultural
producers, foresters, and other landowners receive detailed practical
information about--
`(A) opportunities to earn new revenue under this subtitle;
`(B) measurement protocols, monitoring, verifying, inventorying,
registering, insuring, and marketing offsets under this title;
`(C) emerging domestic markets for energy crops, allowances, and
offsets; and
`(D) local, regional, and national databases and aggregation networks
to facilitate achievement, measurement, registration, and sales of
offsets;
`(A) outreach materials, including the handbook published under
subsection (d)(1), to interested parties;
`(C) technical assistance; and
`(3) may include the creation and development of regional marketing
centers or coordination with existing centers (including centers within the
Natural Resources Conservation Service or the Cooperative State Research,
Education, and Extension Service or at land-grant colleges and
universities).
`(1) IN GENERAL- Not later than 2 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator and after public input, shall publish a handbook for use by
agricultural producers, agricultural cooperatives, foresters, other
landowners, offset buyers, and other stakeholders that provides easy-to-use
guidance on achieving, reporting, registering, and marketing offsets.
`(2) DISTRIBUTION- The Secretary of Agriculture shall ensure, to the
maximum extent practicable, that the handbook is distributed widely through
land-grant colleges and universities and other appropriate
institutions.
`SEC. 832. OFFSET MEASUREMENT FOR AGRICULTURAL, FORESTRY, WETLANDS, AND
OTHER LAND USE-RELATED SEQUESTRATION PROJECTS.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator, shall promulgate regulations establishing the requirements
regarding the issuance, certification, and use of offset credits for
greenhouse gas reductions from agricultural, forestry, wetlands, and other
land use-related sequestration projects, including requirements--
`(1) for a region-specific discount factor for business-as-usual
practices for specific types of sequestration projects, in accordance with
subsection (c);
`(2) that ensure that the reductions are real, additional, verifiable,
and enforceable;
`(3) that address leakage;
`(4) that the reductions are not otherwise required by any law
(including a regulation) or other legally binding requirement;
`(5) for the quantification, monitoring, reporting, and verification of
the reductions;
`(6) that ensure that offset credits are limited in duration to the
period of sequestration of greenhouse gases, and rectify any loss of
sequestration other than a loss caused by an error in calculation identified
under this subtitle, by requiring the submission of additional credits of an
equivalent quantity to the lost sequestration; and
`(7) that quantify sequestration flow.
`(b) Eligibility To Create Offset Credits- A sequestration project that
commences operation on or after January 1, 2010, is eligible to create offset
credits under this subtitle if the sequestration project satisfies the other
applicable requirements of this subtitle.
`(c) Discounting for Business-as-Usual Practices-
`(1) IN GENERAL- In order to streamline the availability of offset
credits for agricultural and other land use-related sequestration projects,
the regulations promulgated under subsection (a) shall provide for the
calculation and reporting of region-specific discount factors by the
Secretary of Agriculture--
`(A) to be used by developers of agricultural projects and other land
use-related sequestration projects; and
`(B) to account for business-as-usual practices for specific types of
sequestration projects.
`(2) CALCULATION- Unless otherwise provided in this subtitle, the
region-specific discount factor for business-as-usual practices for
sequestration projects shall be calculated by dividing--
`(A) the difference between--
`(i) the quantity of greenhouse gases sequestered in the region as a
result of the offset practice under this subtitle; and
`(ii) the quantity of greenhouse gases sequestered in the region as
a result of the projected business-as-usual implementation of the
applicable offset practice; by
`(B) the quantity of greenhouse gases sequestered in the region as a
result of the offset practice under this subtitle.
`(A) IN GENERAL- The regulations promulgated under this section shall,
to the maximum extent practicable--
`(i) define geographic regions with reference to land that has
similar agricultural characteristics; and
`(ii) subject to subparagraph (B), define baseline historical
reference periods for each category of sequestration practice, using the
most recent period of sufficient length for which there are reasonably
comprehensive data available.
`(B) EXCEPTION- If the Secretary of Agriculture determines that
entities have increased implementation of the relevant offset practice
during the most recent period in anticipation of legislation granting
credit for the offsets, the regulations described in subparagraph (A)(ii)
may define baseline historical reference periods for each category of
sequestration practice using an earlier period.
`(d) Quantifying Sequestration Flow- The regulations that quantify
sequestration flow shall include--
`(1) a default rate of sequestration flow, regionally specific to the
maximum extent practicable, for each offset practice or combination of
offset practices, that is estimated conservatively to allow for
site-specific variations and data uncertainties;
`(2) a downward adjustment factor for any offset practice or combination
of practices for which, in the judgment of the Secretary of Agriculture,
there are substantial uncertainties in the sequestration flows estimated in
paragraph (1), but still reasonably sufficient data to calculate a default
rate of flow; and
`(3) OFFSET PRACTICE- or project-specific measurement, monitoring, and
verification requirements for--
`(A) offset practices or projects for which there are insufficiently
reliable data to calculate a default rate of sequestration flow;
or
`(B) projects for which the project proponent chooses to use
project-specific requirements.
`(e) Use of Native Plant Species in Offset Projects- Not later than 18
months after the date of enactment of this title, the Administrator, in
consultation with the Secretary of Agriculture, shall promulgate regulations
for selection, use, and storage of native and nonnative plant materials in the
offset projects described in paragraph (2)--
`(1) to ensure native plant materials are given primary consideration,
in accordance with applicable Department of Agriculture guidance for use of
native plant materials;
`(2) to prohibit the use of Federal or State-designated noxious weeds;
and
`(3) to prohibit the use of a species listed by a regional or State
invasive plant council within the applicable region or State.
`SEC. 833. OFFSET CREDITS FROM GREENHOUSE GAS EMISSIONS REDUCTION
PROJECTS.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing the
requirements regarding the issuance, certification, and use of offset credits
for greenhouse gas emissions reduction offset projects, including
requirements--
`(1) for performance standards for specific types of offset projects,
which represent significant improvements compared to recent practices in the
geographic area, to be reviewed, and updated if the Administrator determines
updating is appropriate, every 5 years;
`(2) that ensure that the reductions are real, additional, verifiable,
enforceable, and permanent;
`(3) that address leakage;
`(4) that the reductions are not otherwise required by any law
(including a regulation) or other legally binding requirement;
`(5) for the quantification, monitoring, reporting, and verification of
the reductions; and
`(6) that specify the duration of offset credits for greenhouse gas
emissions reduction projects under this section.
`(b) Eligibility To Create Offset Credits- Greenhouse gas emissions
reduction offset projects that commence operation on or after January 1, 2007,
are eligible to create offset credits under this subtitle if the projects
satisfy the other applicable requirements of this subtitle.
`(c) Creation of Additional Categories of Greenhouse Gas Emissions
Reduction Offset Projects- The Administrator may, by regulation, create
additional categories of greenhouse gas emissions reduction offset projects
for types of projects for which the Administrator determines that compliance
with the regulations promulgated under subsection (a) is feasible.
`(d) Prohibition on Use- Notwithstanding the eligibility of greenhouse gas
emission reduction projects to create offset credits in accordance with
subsection (d), greenhouse gas emissions reduction offset projects shall not
be eligible to create offset credits for use under this section beginning on
the date on which the reductions are required by law (including regulations)
or other legally binding requirement.
`SEC. 834. BORROWING AT PROGRAM START-UP BASED ON CONTRACTS TO PURCHASE
OFFSET CREDITS.
`(a) In General- During calendar years 2011, 2012, and 2013, a covered
entity may satisfy not more than 5 percent of the allowance submission
requirements of section 822 by submitting to the Administrator contractual
commitments to purchase offset credits that will implement an equivalent
quantity of emission reductions or sequestration not later than December 31,
2015.
`(b) Approval of Qualifying Offset Projects- Offset projects that may be
appropriately carried out under this section shall be approved by the
Administrator in accordance with this subtitle.
`(1) IN GENERAL- If a covered entity uses subsection (a) to comply with
section 822, not later than the deadline in that section for allowance
submissions for calendar year 2015, the covered entity shall submit
additional credits of a quantity equivalent to the sum obtained by
adding--
`(A) the value of credits submitted to comply with credit submission
requirements described in subsection (a); and
`(B) interest calculated in accordance with paragraph (2).
`(2) INTEREST- Interest referred to in paragraph (1)(B) shall be equal
to the product obtained by multiplying--
`(A) the number of years between--
`(i) the use by a covered entity of the method of compliance
described in subsection (a); and
`(ii) the submission by the covered entity of additional credits
under this subsection; and
`(B) the sum obtained by adding--
`(i) the Federal short-term rate, as defined pursuant to section
1274(d)(1)(C)(i) of the Internal Revenue Code of 1986; and
`SEC. 835. REVIEW AND CORRECTION OF ACCOUNTING FOR OFFSET CREDITS.
`(a) Duty to Monitor- The Secretary of Agriculture and the Administrator
shall monitor regularly whether offset credits under the respective
jurisdiction of each agency head under this subtitle are being awarded only
for real and additional sequestration of greenhouse gases and reductions in
greenhouse gas emissions, including--
`(1) the accuracy of default calculations of sequestration flow and
greenhouse gas emission reductions achieved by the use of offset
practices;
`(2) the calculation of region-specific discount factors; and
`(3) the accuracy of leakage calculations.
`(b) Periodic Review- Not later than December 31, 2013, and every 5 years
thereafter, the Secretary of Agriculture and the Administrator shall review
the issuance of offset credits under the respective jurisdiction of each
agency head under this subtitle to determine--
`(1) whether offset credits are being awarded only for real and
additional sequestration of greenhouse gases or reductions in greenhouse gas
emissions, as described in subsection (a);
`(2) the amount of excessive award of any offset credits;
`(3) the volume of offset credits that have been or are expected to be
approved;
`(4) the impact of the offset credits on market prices; and
`(5) the impact of the offset credits on the trajectory of emissions
from covered entities.
`(c) Duty To Correct- If the Secretary of Agriculture or the Administrator
determines that offset credits under the respective jurisdictions of the
agency head have been awarded under this subtitle in excess of real and
additional sequestration of greenhouse gases or reductions in emissions of
greenhouse gases, the Secretary of Agriculture or the Administrator shall--
`(1) promptly correct on a prospective basis the sources of the errors,
including correcting leakage factors, region-specific discount factors,
default rates of sequestration flow, and other relevant information for the
offset practices involved; and
`(2) quantify and publicly disclose the quantity of offset credits that
have been awarded in excess of real and additional sequestration or
emissions reductions.
`Subtitle C--National Registry for Credits
`SEC. 841. ESTABLISHMENT AND OPERATION OF NATIONAL REGISTRY.
`(a) In General- Except as provided in subsection (b), not later than July
1 of the year immediately prior to the first calendar year in which an annual
tonnage limitation on the emission of greenhouse gases applies under section
811(b), the Administrator shall promulgate regulations to establish, operate,
and maintain a national registry through which the Administrator shall--
`(1) record allocations of allowances and the issuance of offset credits
or early reduction credits;
`(2) track transfers of credits;
`(3) retire all credits used for compliance;
`(4) subject to subsection (b), maintain transparent availability of
registry information to the public, including the quarterly reports
submitted under section 842(a);
`(5) prepare an annual assessment of the emission data in the quarterly
reports submitted under section 842(a); and
`(6) take such action as is necessary to maintain the integrity of the
registry, including adjustments to correct for--
`(A) errors or omissions in the reporting of data; and
`(B) the prevention of counterfeiting, double-counting, multiple
registrations, multiple sales, and multiple retirements of
credits.
`(b) Exception to Public Availability of Data-
`(1) IN GENERAL- Subsection (a)(4) shall not apply in any case in which
the Administrator, in consultation with the Secretary of Defense, determines
that publishing or otherwise making available information in accordance with
that paragraph poses a risk to national security.
`(2) STATEMENT OF REASONS- In a case described in paragraph (1), the
Administrator shall publish a description of the determination and the
reasons for the determination.
`SEC. 842. MONITORING AND REPORTING.
`(a) Requirements- Each owner or operator of a covered entity, or to the
extent applicable, the greenhouse gas authorized account representative for
the covered entity, shall--
`(1) comply with the monitoring, recordkeeping, and reporting
requirements of part 75 of title 40, Code of Federal Regulations (or
successor regulations); and
`(2) submit to the Administrator electronic quarterly reports that
describe the greenhouse gas mass emission data, fuel input data, and
electricity output data for the covered entity.
`(b) Biomass Cofiring- Not later than 18 months after the date of
enactment of this title, the Administrator shall promulgate regulations that
provide monitoring, recordkeeping, and reporting requirements for biomass
cofiring at covered entities.'.
(b) Conforming Amendments-
(1) FEDERAL ENFORCEMENT- Section 113 of the Clean Air Act (42 U.S.C.
7413) is amended--
(A) in subsection (a)(3), by striking or title VI,` and inserting
title VI, or title VII,';
(i) by redesignating paragraphs (1) through (3) as subparagraphs (A)
through (C), respectively, and indenting the subparagraphs
appropriately;
(ii) by striking `The Administrator shall' and inserting the
following:
`(1) IN GENERAL- The Administrator shall';
(iii) in paragraph (1) (as designated by clause (ii)), in the matter
preceding subparagraph (A) (as redesignated by clause (i)), by striking
`or a major stationary source' and inserting `a major stationary source,
or a covered entity under title VII'; and
(iv) in subparagraph (B) (as redesignated by clause (i)), by
striking `or title VI' and inserting `title VI, or title
VII';
(v) in the matter following subparagraph (C) of paragraph (1) (as
designated by clauses (i) and (ii))--
(I) by striking `Any action' and inserting the
following:
`(2) JUDICIAL ENFORCEMENT-
`(A) IN GENERAL- Any action';
(II) by striking `Notice' and inserting the
following:
`(B) NOTICE- Notice'; and
(III) by striking `In the case' and inserting the
following:
`(C) ACTIONS BROUGHT BY ADMINISTRATOR- In the case';
(i) in the first sentence of paragraph (1), by striking `or title VI
(relating to stratospheric ozone control),' and inserting `title VI
(relating to stratospheric ozone control), or title VII (relating to
global warming pollution emission reductions),'; and
(ii) in the first sentence of paragraph (3), by striking `or VI' and
inserting `VI, or VII';
(D) in subsection (d)(1)(B), by striking `or VI' and inserting `VI, or
VII'; and
(E) in subsection (f), in the first sentence, by striking `or VI' and
inserting `VI, or VII'.
(2) INSPECTIONS, MONITORING, AND ENTRY- Section 114(a) of the Clean Air
Act (42 U.S.C. 7414(a)) is amended by striking `section 112,' and all that
follows through `(ii)' and inserting the following: `section 112, any
regulation of solid waste combustion under section 129, or any regulation of
greenhouse gas emissions under title VII, (ii)'.
(3) ADMINISTRATIVE PROCEEDINGS AND JUDICIAL REVIEW- Section 307 of the
Clean Air Act (42 U.S.C. 7607) is amended--
(A) in subsection (a), by striking `, or section 306' and inserting
`section 306, or title VII';
(B) in subsection (b)(1)--
(i) by striking `section 111,,' and inserting `section
111,';
(ii) by striking `section 120,' each place it appears and inserting
`section 120, any action under title VII,'; and
(iii) by striking `112,,' and inserting `112,'; and
(C) in subsection (d)(1)--
(i) by striking subparagraph (S);
(ii) by redesignating the second subparagraph (N) and subparagraphs
(O) through (R) as subparagraphs (O), (P), (Q), (R), and (S),
respectively;
(iii) by redesignating subparagraphs (T) and (U) as subparagraphs
(U) and (V), respectively; and
(iv) by inserting after subparagraph (S) (as redesignated by clause
(ii)) the following:
`(T) the promulgation or revision of any regulation under title
VII,'.
(4) UNAVAILABILITY OF EMISSIONS DATA- Section 412(d) of the Clean Air
Act (42 U.S.C. 7651k(d)) is amended in the first sentence--
(A) by inserting `or title VII' after `under subsection (a)';
and
(B) by inserting `or title VII' after `this title'.
Subtitle B--Climate Change Research Initiatives
SEC. 711. RESEARCH GRANTS THROUGH NATIONAL SCIENCE FOUNDATION.
Section 105 of the Global Change Research Act of 1990 (15 U.S.C. 2935) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
`(1) LIST OF PRIORITY RESEARCH AREAS- The Committee shall develop a list
of priority areas for research and development on climate change that are
not being adequately addressed by Federal agencies.
`(2) TRANSMISSION OF LIST- The Director of the Office of Science and
Technology Policy shall submit the list developed under paragraph (1) to the
National Science Foundation.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the National Science Foundation such sums as are necessary
to carry out this subsection, to be made available through the Science and
Technology Policy Institute, for research in the priority areas.'.
SEC. 712. ABRUPT CLIMATE CHANGE RESEARCH.
(a) In General- The Secretary of Commerce, acting through the National
Oceanic and Atmospheric Administration, shall carry out a program of
scientific research on abrupt climate change designed to provide timely
warnings of the potential likelihood, magnitude, and consequences of, and
measures to avoid, abrupt human-induced climate change.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Commerce such sums as are necessary to carry
out this section.
SEC. 713. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.
(a) In General- The Administrator of the Environmental Protection Agency
shall carry out a program to develop, with technical assistance from
appropriate Federal agencies, innovative standards and measurement
technologies to calculate greenhouse gas emissions or reductions for which no
accurate, reliable, low-cost measurement technology exists.
(b) Administration- The program shall include technologies (including
remote sensing technologies) to measure carbon changes and other greenhouse
gas emissions and reductions from agriculture, forestry, wetlands, and other
land use practices.
(c) Authorization of Appropriations- There are authorized to be
appropriated to the Administrator such sums as are necessary to carry out this
section.
SEC. 714. TECHNOLOGY DEVELOPMENT AND DIFFUSION.
(a) In General- The Director of the National Institute of Standards and
Technology, acting through the Manufacturing Extension Partnership program,
may develop a program to promote the use, by small manufacturers, of
technologies and techniques that result in reduced emissions of greenhouse
gases or increased sequestration of greenhouse gases.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Director of the National Institute of Standards and
Technology such sums as are necessary to carry out this section.
SEC. 715. PUBLIC LAND.
(a) In General- Not later than 3 years after the date of enactment of this
Act, the Secretary of Agriculture and the Secretary of the Interior shall
prepare a joint assessment or separate assessments setting forth
recommendations for increased sequestration of greenhouse gases and reduction
of greenhouse gas emissions on public land that is--
(2) managed rangeland or grassland; or
(3) protected land, including national parks and designated wilderness
areas.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Agriculture and the Secretary of the Interior
such sums as are necessary to carry out this section.
SEC. 716. SEA LEVEL RISE FROM POLAR ICE SHEET MELTING.
(a) In General- The Secretary of Commerce, acting through the National
Oceanic and Atmospheric Administration and in cooperation with the
Administrator of the National Aeronautics and Space Administration, shall
carry out a program of scientific research to support modeling and
observations into the potential role of the Greenland, west Antarctic, and
east Antarctic ice sheets in any future increase in sea levels.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Commerce and the Administrator of the
National Aeronautics and Space Administration such sums as are necessary to
carry out this section.
TITLE VIII--OFFSETS
Subtitle A--Denial of Oil and Gas Tax Benefits
SEC. 801. SHORT TITLE.
This subtitle may be cited as the `Ending Subsidies for Big Oil Act of
2007'.
SEC. 802. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION
OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
(a) In General- Subparagraph (B) of section 199(c)(4) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended by striking `or' at
the end of clause (ii), by striking the period at the end of clause (iii) and
inserting `, or', and by inserting after clause (iii) the following new
clause:
`(iv) the sale, exchange, or other disposition of oil, natural gas,
or any primary product thereof.'.
(b) Primary Product- Section 199(c)(4)(B) of such Code is amended by
adding at the end the following flush sentence:
`For purposes of clause (iv), the term `primary product' has the same
meaning as when used in section 927(a)(2)(C), as in effect before its
repeal.'.
(c) Conforming Amendments- Section 199(c)(4) of such Code is amended--
(1) in subparagraph (A)(i)(III) by striking `electricity, natural gas,'
and inserting `electricity', and
(2) in subparagraph (B)(ii) by striking `electricity, natural gas,' and
inserting `electricity'.
(d) Effective Date- The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.
SEC. 803. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES FOR
CERTAIN MAJOR INTEGRATED OIL COMPANIES.
(a) In General- Subparagraph (A) of section 167(h)(5) of the Internal
Revenue Code of 1986 (relating to special rule for major integrated oil
companies) is amended by striking `5-year' and inserting `7-year'.
(b) Effective Date- The amendment made by this section shall apply to
amounts paid or incurred after the date of the enactment of this Act.
Subtitle B--Royalties Under Offshore Oil and Gas Leases
SEC. 811. SHORT TITLE.
This title may be cited as the `Royalty Relief for American Consumers Act
of 2007'.
SEC. 812. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any lessee to
amend any lease issued for any Central and Western Gulf of Mexico tract during
the period of January 1, 1998, through December 31, 1999, to incorporate price
thresholds applicable to royalty suspension provisions, that are equal to or
less than the price thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)). Any amended lease shall impose the new or revised price
thresholds effective October 1, 2006. Existing lease provisions shall prevail
through September 30, 2006.
SEC. 813. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE THRESHOLDS FOR CERTAIN
LEASE SALES.
Congress reaffirms the authority of the Secretary of the Interior under
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)(H)) to vary, based on the price of production from a lease, the
suspension of royalties under any lease subject to section 304 of the Outer
Continental Shelf Deep Water Royalty Relief Act (Public Law 104-58; 43 U.S.C.
1337 note).
SEC. 814. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES;
CONSERVATION OF RESOURCES FEES.
(a) Issuance of New Leases-
(1) IN GENERAL- The Secretary shall not issue any new lease that
authorizes the production of oil or natural gas in the Gulf of Mexico under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) to a person
described in paragraph (2) unless--
(A) the person has renegotiated each covered lease with respect to
which the person is a lessee, to modify the payment responsibilities of
the person to include price thresholds that are equal to or less than the
price thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)); or
(i) paid all fees established by the Secretary under subsection (b)
that are due with respect to each covered lease for which the person is
a lessee; or
(ii) entered into an agreement with the Secretary under which the
person is obligated to pay such fees.
(2) PERSONS DESCRIBED- A person referred to in paragraph (1) is a person
that--
(i) holds a covered lease on the date on which the Secretary
considers the issuance of the new lease; or
(ii) was issued a covered lease before the date of enactment of this
Act, but transferred the covered lease to another person or entity
(including a subsidiary or affiliate of the lessee) after the date of
enactment of this Act; or
(B) any other person or entity who has any direct or indirect interest
in, or who derives any benefit from, a covered lease;
(A) IN GENERAL- For purposes of paragraph (1), if there are multiple
lessees that own a share of a covered lease, the Secretary may implement
separate agreements with any lessee with a share of the covered lease that
modifies the payment responsibilities with respect to the share of the
lessee to include price thresholds that are equal to or less than the
price thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).
(B) TREATMENT OF SHARE AS COVERED LEASE- Beginning on the effective
date of an agreement under subparagraph (A), any share subject to the
agreement shall not constitute a covered lease with respect to any lessees
that entered into the agreement.
(b) Conservation of Resources Fees-
(1) IN GENERAL- Not later than 60 days after the date of enactment of
this Act, the Secretary of the Interior by regulation shall
establish--
(A) a conservation of resources fee for producing Federal oil and gas
leases in the Gulf of Mexico; and
(B) a conservation of resources fee for nonproducing Federal oil and
gas leases in the Gulf of Mexico.
(2) PRODUCING LEASE FEE TERMS- The fee under paragraph (1)(A)--
(A) subject to subparagraph (C), shall apply to covered leases that
are producing leases;
(B) shall be set at $9 per barrel for oil and $1.25 per million Btu
for gas, respectively, in 2005 dollars; and
(C) shall apply only to production of oil or gas occurring--
(i) in any calendar year in which the arithmetic average of the
daily closing prices for light sweet crude oil on the New York
Mercantile Exchange (NYMEX) exceeds $34.73 per barrel for oil and $4.34
per million Btu for gas in 2005 dollars; and
(ii) on or after October 1, 2006.
(3) NONPRODUCING LEASE FEE TERMS- The fee under paragraph (1)(B)--
(A) subject to subparagraph (C), shall apply to leases that are
nonproducing leases;
(B) shall be set at $3.75 per acre per year in 2005 dollars;
and
(C) shall apply on and after October 1, 2006.
(4) TREATMENT OF RECEIPTS- Amounts received by the United States as fees
under this subsection shall be treated as offsetting receipts.
(c) Transfers- A lessee or any other person who has any direct or indirect
interest in, or who derives a benefit from, a lease shall not be eligible to
obtain by sale or other transfer (including through a swap, spinoff,
servicing, or other agreement) any covered lease, the economic benefit of any
covered lease, or any other lease for the production of oil or natural gas in
the Gulf of Mexico under the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.), unless--
(1) the lessee or other person has--
(A) renegotiated all covered leases of the lessee or other person;
and
(B) entered into an agreement with the Secretary to modify the terms
of all covered leases of the lessee or other person to include limitations
on royalty relief based on market prices that are equal to or less than
the price thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)); or
(2) the lessee or other person has--
(A) paid all fees established by the Secretary under subsection (b)
that are due with respect to each covered lease for which the person is a
lessee; or
(B) entered into an agreement with the Secretary under which the
person is obligated to pay such fees.
(d) Definitions- In this section--
(1) COVERED LEASE- The term `covered lease' means a lease for oil or gas
production in the Gulf of Mexico that is--
(A) in existence on the date of enactment of this Act;
(B) issued by the Department of the Interior under section 304 of the
Outer Continental Shelf Deep Water Royalty Relief Act (43 U.S.C. 1337
note; Public Law 104-58); and
(C) not subject to limitations on royalty relief based on market price
that are equal to or less than the price thresholds described in clauses
(v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) LESSEE- The term `lessee' includes any person or other entity that
controls, is controlled by, or is in or under common control with, a
lessee.
(3) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
SEC. 815. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE OIL
AND GAS INDUSTRY.
(a) Repeal of Provisions of Energy Policy Act of 2005- The following
provisions of the Energy Policy Act of 2005 (Public Law 109-58) are
repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives for natural gas
production from deep wells in shallow waters of the Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to royalty relief for deep
water production in the Gulf of Mexico).
(3) Subsection (i) of section 365 (42 U.S.C. 15924; relating to the
prohibition on drilling-related permit application cost recovery
fees).
(b) Provisions Relating to Planning Areas Offshore Alaska- Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B))
is amended by striking `and in the Planning Areas offshore Alaska' after `West
longitude'.
(c) Provisions Relating to Naval Petroleum Reserve in Alaska- Section 107
of the Naval Petroleum Reserves Production Act of 1976 (as transferred,
redesignated, moved, and amended by section 347 of the Energy Policy Act of
2005 (119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through (6); and
(2) by striking subsection (k).
Subtitle C--Strategic Energy Efficiency and Renewable
Reserve
SEC. 821. STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE FOR INVESTMENTS
IN RENEWABLE ENERGY AND ENERGY EFFICIENCY.
(a) In General- For budgetary purposes, the additional Federal receipts by
reason of the enactment of this Act shall be held in a separate account to be
known as the `Strategic Energy Efficiency and Renewables Reserve'. The
Strategic Energy Efficiency and Renewables Reserve shall be available to
offset the cost of subsequent legislation--
(1) to accelerate the use of clean domestic renewable energy resources
and alternative fuels;
(2) to promote the utilization of energy-efficient products and
practices and conservation; and
(3) to increase research, development, and deployment of clean renewable
energy and efficiency technologies.
(b) Procedure for Adjustments-
(1) BUDGET COMMITTEE CHAIRMAN- After the reporting of a bill or joint
resolution, or the offering of an amendment thereto or the submission of a
conference report thereon, providing funding for the purposes set forth in
subsection (a) in excess of the amounts provided for those purposes for
fiscal year 2007, the chairman of the Committee on the Budget of the
applicable House of Congress shall make the adjustments set forth in
paragraph (2) for the amount of new budget authority and outlays in that
measure and the outlays flowing from that budget authority.
(2) MATTERS TO BE ADJUSTED- The adjustments referred to in paragraph (1)
are to be made to--
(A) the discretionary spending limits, if any, set forth in the
appropriate concurrent resolution on the budget;
(B) the allocations made pursuant to the appropriate concurrent
resolution on the budget pursuant to section 302(a) of the Congressional
Budget Act of 1974; and
(C) the budget aggregates contained in the appropriate concurrent
resolution on the budget as required by section 301(a) of the
Congressional Budget Act of 1974.
(3) AMOUNTS OF ADJUSTMENTS- The adjustments referred to in paragraphs
(1) and (2) shall not exceed the receipts estimated by the Congressional
Budget Office that are attributable to this Act for the fiscal year in which
the adjustments are made.
END