[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2089 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 241
114th CONGRESS
1st Session
S. 2089
To provide for investment in clean energy, to empower and protect
consumers, to modernize energy infrastructure, to cut pollution and
waste, to invest in research and development, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 28, 2015
Ms. Cantwell (for herself, Mr. Reid, Mr. Wyden, Mr. Durbin, Mr.
Schumer, Ms. Stabenow, Mr. Heinrich, Mr. Franken, Ms. Hirono, Ms.
Warren, Mrs. Shaheen, Ms. Mikulski, Mr. Coons, Mr. Bennet, Mr. Murphy,
Mr. Markey, Mrs. Feinstein, Mr. Blumenthal, Mr. Peters, Mr. Schatz, Mr.
Reed, Mrs. Murray, Mr. Cardin, Mr. Carper, Mr. King, Mr. Merkley, Mr.
Booker, Mrs. Boxer, Ms. Klobuchar, and Mrs. Gillibrand) introduced the
following bill; which was read the first time
September 29, 2015
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide for investment in clean energy, to empower and protect
consumers, to modernize energy infrastructure, to cut pollution and
waste, to invest in research and development, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Energy
Innovation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--EMPOWERING AND PROTECTING CONSUMERS
Subtitle A--Access to Consumer Energy Information
Sec. 1001. Consumer access to electric energy information.
Subtitle B--Unfair Trade Practices Prohibition in Distributed
Generation
Sec. 1011. Investigation of distributed generation.
Subtitle C--Enhanced Grid Security
Sec. 1021. Cybersecurity threats.
Sec. 1022. Enhanced grid security.
Subtitle D--Capacity Markets Study
Sec. 1031. GAO capacity market impact study.
Subtitle E--Severe Coal Supply Emergency Response
Sec. 1041. Severe coal supply emergency response.
Subtitle F--Energy Markets
Sec. 1051. Enhanced information on critical energy supplies.
Sec. 1052. Working Group on Energy Markets.
Sec. 1053. Study of regulatory framework for energy markets.
Subtitle G--Transmission
Sec. 1061. Report by transmission organizations on distributed energy
resources and microgrid systems.
Sec. 1062. Net metering study guidance.
TITLE II--MODERNIZING INFRASTRUCTURE
Subtitle A--QER Recommendations
Sec. 2001. Natural gas distribution system improvement program.
Sec. 2002. Strategy for managing the risks associated with the loss or
disruption of power from large power
transformers.
Sec. 2003. Consolidation of release authorities.
Sec. 2004. Modernization of Strategic Petroleum Reserve release
authorities.
Sec. 2005. Optimization of emergency response capability of Strategic
Petroleum Reserve.
Subtitle B--Grid Modernization and Storage
Sec. 2011. Definition of Secretary.
Sec. 2012. Grid storage program.
Sec. 2013. Technology demonstration and the distribution system.
Sec. 2014. Microgrid systems for isolated and resilient communities.
Sec. 2015. Electric system grid architecture, scenario development, and
modeling.
Sec. 2016. Voluntary model pathways.
Sec. 2017. Performance metrics for electricity infrastructure
providers.
Sec. 2018. State and regional distribution planning.
Sec. 2019. Authorization of appropriations.
Sec. 2020. State consideration of resilience.
Subtitle C--Advanced Manufacturing
Sec. 2021. Advanced Manufacturing Office.
Sec. 2022. National Advanced Manufacturing Plan.
Sec. 2023. Advanced manufacturing supply chain report.
Sec. 2024. Leveraging existing agency programs to assist small and
medium manufacturers.
Sec. 2025. Advanced Manufacturing Innovation Hubs.
Sec. 2026. Advanced Materials Prize Competition Pilot Program.
Sec. 2027. Pilot program with original equipment manufacturers and
public utilities.
Subtitle D--Building Better Trucks
Sec. 2031. Advanced technology vehicles manufacturing incentive
program.
Subtitle E--Vehicle Innovation
Sec. 2041. Findings.
Sec. 2042. Objectives.
Sec. 2043. Vehicle research and development program.
Sec. 2044. Medium- and heavy-duty commercial and transit vehicles
program.
Sec. 2045. Authorization of appropriations.
Subtitle F--Carbon Fiber Recycling
Sec. 2051. Recycled carbon fiber study.
Sec. 2052. Carbon fiber recycling demonstration project.
Sec. 2053. Authorization of appropriations.
Subtitle G--Job Creation Through Energy Efficient Manufacturing
Sec. 2061. Purpose.
Sec. 2062. Definitions.
Sec. 2063. Financing Energy Efficient Manufacturing Program.
Sec. 2064. Authorization of appropriations.
Subtitle H--21\st\ Century Energy Workforce
Sec. 2101. Findings.
Sec. 2102. Definitions.
Sec. 2103. National Center of Excellence for the 21\st\ Century
Workforce.
Sec. 2104. Energy workforce pilot grant program.
Subtitle I--Solar Installations
Sec. 2111. Loan and grant program for solar installations in low-income
and underserved areas.
Subtitle J--Local Energy Supply and Resiliency Act
Sec. 2121. Definitions.
Sec. 2122. Distributed energy loan program.
Sec. 2123. Technical assistance and grant program.
Subtitle K--Geothermal Energy Opportunities
Sec. 2131. National goals for production and site identification.
Sec. 2132. Priority areas for development on Federal land.
Sec. 2133. Facilitation of coproduction of geothermal energy on oil and
gas leases.
Sec. 2134. Cost-shared exploration.
Sec. 2135. Use of geothermal lease revenues.
Sec. 2136. Noncompetitive leasing of adjoining areas for development of
geothermal resources.
Sec. 2137. Large-scale geothermal energy.
Sec. 2138. Report to Congress.
Sec. 2139. Authorization of appropriations.
Subtitle L--Clean Coal Technology Research
Sec. 2141. Fossil energy.
Subtitle M--Long-term Contracts
Sec. 2151. Contracts for Federal purchases of energy.
Subtitle N--Promoting Renewable Energy With Shared Solar
Sec. 2161. Provision of interconnection service and net billing service
for community solar facilities.
Subtitle O--Report on Low- and No-Carbon Energy Technologies
Sec. 2171. Report.
Subtitle P--Loan Programs
Sec. 2181. Terms and conditions for incentives for innovative
technologies.
Sec. 2182. State loan eligibility.
TITLE III--CUTTING POLLUTION AND WASTE
Subtitle A--Carbon Savings Goal
Sec. 3001. Policy of United States on addressing climate change.
Subtitle B--American Energy Efficiency
Sec. 3011. Energy efficiency resource standard for retail electricity
and natural gas suppliers.
Subtitle C--Energy Efficiency Retrofit Program
Sec. 3021. Energy efficiency retrofit pilot program.
Subtitle D--Weatherization Enhancement and Local Energy Efficiency
Investment and Accountability
Sec. 3031. Findings.
Sec. 3032. Reauthorization of Weatherization Assistance Program.
Sec. 3033. Grants for new, self-sustaining low-income, single-family,
and multifamily housing energy retrofit
model programs to eligible multi-State
housing and energy nonprofit organizations.
Sec. 3034. Standards program.
Sec. 3035. Reauthorization of State energy program.
Subtitle E--Utility Energy Service Contracts Improvement
Sec. 3041. Findings.
Sec. 3042. Utility energy service contracts.
Subtitle F--State Residential Building Energy Efficiency Loan Pilot
Program
Sec. 3051. State residential building energy efficiency upgrades loan
pilot program.
Subtitle G--Smart Energy and Water Efficiency
Sec. 3061. Smart energy and water efficiency pilot program.
Subtitle H--Regional Energy Partnerships
Sec. 3071. Definitions.
Sec. 3072. Regional energy partnerships.
Sec. 3073. Authorization of appropriations.
Subtitle I--Energy Productivity Innovation Challenge
Sec. 3081. Definitions.
Sec. 3082. Phase 1: Initial allocation of grants to States.
Sec. 3083. Phase 2: Subsequent allocation of grants to States.
Sec. 3084. Allocation of grants to Indian tribes.
Sec. 3085. Administration.
Sec. 3086. Authorization of appropriations.
Subtitle J--Smart Buildings
Sec. 3091. Definitions.
Subtitle K--Energy Study
Sec. 3101. Energy information study.
Sec. 3102. Grants to utilities.
Sec. 3103. Grants to States and units of local government.
Sec. 3104. Input From Stakeholders.
Sec. 3105. Report.
Subtitle L--Alternative Fueled Vehicles
Sec. 3111. Alternative fueled vehicle fleets and infrastructure.
Subtitle M--Outer Continental Shelf
Sec. 3121. Repeal of outer Continental Shelf deep water and deep gas
royalty relief.
Sec. 3122. Disposition of qualified outer Continental Shelf revenues
from 181 Area, 181 South Area, and 2002-
2007 planning areas of Gulf of Mexico.
Subtitle N--Venting and Flaring of Gas
Sec. 3131. Regulations to prevent or minimize venting and flaring of
gas.
Sec. 3132. Assessment of venting and flaring of gas in production
operations in United States.
Sec. 3133. Regulations.
Subtitle O--Production Incentive Fee
Sec. 3141. Production incentive fee.
Subtitle P--Reauthorization of Desalination Act
Sec. 3151. Reauthorization of Desalination Act.
Sec. 3152. Promoting water efficiency with WaterSense.
Sec. 3153. Increasing opportunities for agricultural conservation.
Sec. 3154. Support for innovative water supply and conservation
technologies.
TITLE IV--INVESTING IN RESEARCH AND DEVELOPMENT
Sec. 4001. Basic research.
Sec. 4002. Advanced Research Projects Agency-Energy.
TITLE V--INVESTING IN CLEAN ENERGY
Sec. 5001. Amendment of 1986 Code.
Subtitle A--Clean Energy Tax Credits
Sec. 5011. Clean energy production credit.
Sec. 5012. Clean energy investment credit.
Sec. 5013. Extensions and modifications of various energy provisions.
Subtitle B--Clean Fuel Tax Credits
Sec. 5021. Clean fuel production credit.
Sec. 5022. Temporary extension of existing fuel incentives.
Subtitle C--Energy Efficiency Incentives
Sec. 5031. Credit for new energy efficient residential buildings.
Sec. 5032. Energy efficiency credit for existing residential buildings.
Sec. 5033. Deduction for new energy efficient commercial buildings.
Sec. 5034. Energy efficiency deduction for existing commercial
buildings.
Subtitle D--Clean Electricity and Fuel Bonds
Sec. 5041. Clean Energy Bonds.
Subtitle E--Treatment of Tar Sands Under Excise Taxes
Sec. 5051. Clarification of tar sands as crude oil for excise tax
purposes.
Subtitle F--Closing Big Oil Tax Loopholes
Sec. 5061. Modifications of foreign tax credit rules applicable to
major integrated oil companies which are
dual capacity taxpayers.
Sec. 5062. Limitation on section 199 deduction attributable to oil,
natural gas, or primary products thereof.
Sec. 5063. Limitation on deduction for intangible drilling and
development costs; amortization of
disallowed amounts.
Sec. 5064. Limitation on percentage depletion allowance for oil and gas
wells.
Sec. 5065. Limitation on deduction for tertiary injectants.
TITLE VI--CONSERVATION REAUTHORIZATION
Sec. 6001. National Park Service Centennial Fund.
Sec. 6002. Land and Water Conservation Fund.
Sec. 6003. Historic preservation fund.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Secretary.--Except as otherwise provided in this Act,
the term ``Secretary'' means the Secretary of Energy.
TITLE I--EMPOWERING AND PROTECTING CONSUMERS
Subtitle A--Access to Consumer Energy Information
SEC. 1001. CONSUMER ACCESS TO ELECTRIC ENERGY INFORMATION.
(a) In General.--The Secretary shall encourage and support the
adoption of policies that allow electricity consumers access to their
own electricity data.
(b) Eligibility for State Energy Plans.--Section 362(d) of the
Energy Policy and Conservation Act (42 U.S.C. 6322(d)) is amended--
(1) in paragraph (16), by striking ``and'' after the
semicolon at the end;
(2) by redesignating paragraph (17) as paragraph (18); and
(3) by inserting after paragraph (16) the following:
``(17) programs--
``(A) to enhance consumer access to and
understanding of energy usage and price information,
including consumers' own residential and commercial
electricity information; and
``(B) to allow for the development and adoption of
innovative products and services to assist consumers in
managing energy consumption and expenditures; and''.
(c) Voluntary Guidelines for Electric Consumer Access.--
(1) Definitions.--In this subsection:
(A) Retail electric energy information.--The term
``retail electric energy information'' means--
(i) the electric energy consumption of an
electric consumer over a defined time period;
(ii) the retail electric energy prices or
rates applied to the electricity usage for the
defined time period described in clause (i) for
the electric consumer;
(iii) the estimated cost of service by the
consumer, including (if smart meter usage
information is available) the estimated cost of
service since the last billing cycle of the
consumer; and
(iv) in the case of nonresidential electric
meters, any other electrical information that
the meter is programmed to record (such as
demand measured in kilowatts, voltage,
frequency, current, and power factor).
(B) Smart meter.--The term ``smart meter'' means
the device used by an electric utility that--
(i)(I) measures electric energy consumption
by an electric consumer at the home or facility
of the electric consumer in intervals of 1 hour
or less; and
(II) is capable of sending electric energy
usage information through a communications
network to the electric utility; or
(ii) meets the guidelines issued under
paragraph (2).
(2) Voluntary guidelines for electric consumer access.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, subject to subparagraph
(B), the Secretary shall issue voluntary guidelines
that establish model standards for implementation of
retail electric energy information access in States.
(B) Consultation.--Before issuing the voluntary
guidelines, the Secretary shall--
(i) consult with--
(I) State and local regulatory
authorities, including the National
Association of Regulatory Utility
Commissioners;
(II) other appropriate Federal
agencies, including the National
Institute of Standards and Technology;
(III) consumer and privacy advocacy
groups;
(IV) utilities;
(V) the National Association of
State Energy Officials; and
(VI) other appropriate entities,
including groups representing
commercial and residential building
owners and groups that represent demand
response and electricity data devices
and services; and
(ii) provide notice and opportunity for
comment.
(C) State and local regulatory action.--In issuing
the voluntary guidelines, the Secretary shall, to the
maximum extent practicable, be guided by actions taken
by State and local regulatory authorities to ensure
electric consumer access to retail electric energy
information, including actions taken after
consideration of the standard established under section
111(d)(17) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2621(d)(17)).
(D) Contents.--
(i) In general.--The voluntary guidelines
shall provide guidance on issues necessary to
carry out this subsection, including--
(I) the timeliness and specificity
of retail electric energy information;
(II) appropriate nationally
recognized open standards for data;
(III) the protection of data
security and electric consumer privacy,
including consumer consent
requirements; and
(IV) issues relating to access of
electric energy information for owners
and managers of multitenant commercial
and residential buildings.
(ii) Inclusions.--The voluntary guidelines
shall include guidance that--
(I) retail electric energy
information should be made available to
electric consumers (and third-party
designees of the electric consumers) in
the United States--
(aa) in an electronic
machine readable form, without
additional charge, in
conformity with standards
developed through a voluntary,
consensus-based,
multistakeholder process;
(bb) as timely as is
reasonably practicable;
(cc) at the level of
specificity that the data is
transmitted by the meter or as
is reasonably practicable; and
(dd) in a manner that
provides adequate protections
for the security of the
information and the privacy of
the electric consumer;
(II) in the case of an electric
consumer that is served by a smart
meter that can also communicate energy
usage information to a device or
network of an electric consumer or a
device or network of a third party
authorized by the consumer, considers
providing to the consumer or third-
party designee, at a minimum, access to
usage information (not including price
information) of the consumer directly
from the smart meter;
(III) retail electric energy
information should be provided by the
electric utility of the consumer or
such other entity as may be designated
by the applicable electric retail
regulatory authority;
(IV) retail electric energy
information of the consumer should be
made available to the consumer through
a website or other electronic access
authorized by the electric consumer,
for a period of at least 13 months
after the date on which the usage
occurred;
(V) consumer access to data,
including data provided to owners and
managers of commercial and multifamily
buildings with multiple tenants, should
not interfere with or compromise the
integrity, security, or privacy of the
operations of a utility and the
electric consumer;
(VI) electric energy information
relating to usage information generated
by devices in or on the property of the
consumer that is transmitted to the
electric utility should be made
available to the electric consumer or
the third-party agent designated by the
electric consumer; and
(VII) the same privacy and security
requirements applicable to the
contracting utility under subclause
(I)(dd) should apply to third-party
agents contracting with a utility to
process the customer data of that
utility.
(E) Revisions.--The Secretary shall periodically
review and, as necessary, revise the voluntary
guidelines to reflect changes in technology, privacy
needs, and the market for electric energy and services.
(d) Verification and Implementation.--
(1) In general.--A State may submit to the Secretary a
description of the data sharing policies of the State relating
to consumer access to electric energy information for
certification by the Secretary that the policies meet the
voluntary guidelines issued under subsection (c)(2).
(2) Assistance.--Subject to the availability of funds under
paragraph (3), the Secretary shall make Federal amounts
available to any State that has data sharing policies described
in paragraph (1) that the Secretary certifies meets the
voluntary guidelines issued under subsection (c)(2) to assist
the State in implementing section 362(d)(17) of the Energy
Policy and Conservation Act (42 U.S.C. 6322(d)(17)).
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
fiscal year 2016, to remain available until expended.
Subtitle B--Unfair Trade Practices Prohibition in Distributed
Generation
SEC. 1011. INVESTIGATION OF DISTRIBUTED GENERATION.
(a) Definitions.--In this section:
(1) Distributed generation.--The term ``distributed
generation'' means the generation of electric energy for use at
or near the point of generation.
(2) Electric consumer.--The term ``electric consumer''
means any person to whom electric energy is sold for purposes
other than resale.
(3) Electric utility.--The term ``electric utility'' means
any person that sells electric energy.
(4) Interconnection practice.--The term ``interconnection
practice'' means any rate, charge, fee, requirement, or
contractual term required by an electric utility--
(A) to connect a distributed energy facility owned
or operated by an electric consumer to facilities of
the electric utility;
(B) to purchase from an electric consumer electric
energy generated by a distributed generation facility;
or
(C) to sell electric energy to an electric consumer
that owns or operates a distributed generation
facility.
(b) Investigation.--The Federal Trade Commission shall conduct an
investigation to determine the extent to which interconnection
practices impede the use of distributed generation.
(c) Report.--On completion of the investigation under subsection
(b), the Federal Trade Commission shall--
(1) identify any interconnection practice that
substantially injures electric consumers and violates public
policies promoting the development of distributed generation;
(2) determine whether any interconnection practice
identified under paragraph (1) is an unfair act or practice in
or affecting commerce in violation of section 5 of the Federal
Trade Commission Act (15 U.S.C. 45); and
(3) report to Congress the findings and conclusions of the
investigation (including the determinations under paragraphs
(1) and (2)) and any recommendations for additional legislation
that the Commission determines is needed to remove unfair
impediments to the development of distributed generation.
Subtitle C--Enhanced Grid Security
SEC. 1021. CYBERSECURITY THREATS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 224. CYBERSECURITY THREATS.
``(a) Definitions.--In this section:
``(1) Bulk-power system.--The term `bulk-power system' has
the meaning given the term in section 215.
``(2) Cybersecurity threat.--The term `cybersecurity
threat' means the imminent danger of an act that severely
disrupts, attempts to severely disrupt, or poses a significant
risk of severely disrupting the operation of programmable
electronic devices or communications networks (including
hardware, software, and data) essential to the reliable
operation of the bulk-power system.
``(3) Electric reliability organization.--The term
`Electric Reliability Organization' has the meaning given the
term in section 215.
``(4) Secretary.--The term `Secretary' means the Secretary
of Energy.
``(b) Emergency Authority of Secretary.--
``(1) In general.--If the President notifies the Secretary
that the President has made a determination that immediate
action is necessary to protect the bulk-power system from a
cybersecurity threat, the Secretary may require, by order and
with or without notice, any entity that is registered with the
Electric Reliability Organization as an owner, operator, or
user of the bulk-power system to take such actions as the
Secretary determines will best avert or mitigate the
cybersecurity threat.
``(2) Written explanation.--As soon as practicable after
notifying the Secretary under paragraph (1), the President
shall--
``(A) provide to the Secretary, in writing, a
record of the determination and an explanation of the
reasons for the determination; and
``(B) promptly notify, in writing, congressional
committees of relevant jurisdiction, including the
Committee on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce of the House
of Representatives, of the contents of, and
justification for, the directive or determination.
``(3) Coordination with canada and mexico.--In exercising
the authority pursuant to this subsection, the Secretary is
encouraged to consult and coordinate with the appropriate
officials in Canada and Mexico responsible for the protection
of cybersecurity of the interconnected North American
electricity grid.
``(4) Consultation.--Before exercising authority pursuant
to this subsection, to the maximum extent practicable, taking
into consideration the nature of an identified cybersecurity
threat and the urgency of need for action, the Secretary shall
consult regarding implementation of actions that will
effectively address the cybersecurity threat with--
``(A) any entities potentially subject to the
cybersecurity threat that own, control, or operate
bulk-power system facilities;
``(B) the Electric Reliability Organization;
``(C) the Electricity Sub-sector Coordinating
Council (as established by the Electric Reliability
Organization); and
``(D) officials of other Federal departments and
agencies, as appropriate.
``(5) Cost recovery.--
``(A) In general.--The Commission shall adopt
regulations that permit entities subject to an order
under paragraph (1) to seek recovery of prudently
incurred costs required to implement actions ordered by
the Secretary under this subsection.
``(B) Requirements.--Any rate or charge approved
under regulations adopted pursuant to this paragraph--
``(i) shall be just and reasonable; and
``(ii) shall not be unduly discriminatory
or preferential.
``(c) Duration of Emergency Orders.--An order issued by the
Secretary pursuant to subsection (b) shall remain in effect for not
longer than the 30-day period beginning on the effective date of the
order, unless, during that 30 day-period, the Secretary--
``(1) provides to interested persons an opportunity to
submit written data, recommendations, and arguments; and
``(2) affirms, amends, or repeals the order, subject to the
condition that an amended order shall not exceed a total
duration of 90 days.''.
SEC. 1022. ENHANCED GRID SECURITY.
(a) Definitions.--In this section:
(1) Electric utility.--The term ``electric utility'' has
the meaning given the term in section 3 of the Federal Power
Act (16 U.S.C. 796).
(2) ES-ISAC.--The term ``ES-ISAC'' means the Electricity
Sector Information Sharing and Analysis Center.
(3) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(4) Sector-specific agency.--The term ``Sector-Specific
Agency'' has the meaning given the term in the Presidential
policy directive entitled ``Critical Infrastructure Security
and Resilience'', numbered 21, and dated February 12, 2013.
(b) Sector-specific Agency for Cybersecurity for the Energy
Sector.--
(1) In general.--The Department shall be the lead Sector-
Specific Agency for cybersecurity for the energy sector.
(2) Duties.--As the designated Sector-Specific Agency for
cybersecurity, the duties of the Department shall include--
(A) coordinating with the Department of Homeland
Security and other relevant Federal departments and
agencies;
(B) collaborating with--
(i) critical infrastructure owners and
operators; and
(ii) as appropriate--
(I) independent regulatory
agencies; and
(II) State, local, tribal and
territorial entities;
(C) serving as a day-to-day Federal interface for
the dynamic prioritization and coordination of sector-
specific activities;
(D) carrying out incident management
responsibilities consistent with applicable law
(including regulations) and other appropriate policies
or directives;
(E) providing, supporting, or facilitating
technical assistance and consultations for the energy
sector to identify vulnerabilities and help mitigate
incidents, as appropriate; and
(F) supporting the reporting requirements of the
Department of Homeland Security under applicable law by
providing, on an annual basis, sector-specific critical
infrastructure information.
(c) Cybersecurity for the Energy Sector Research, Development, and
Demonstration Program.--
(1) In general.--The Secretary, in consultation with
appropriate Federal agencies, the energy sector, the States,
and other stakeholders, shall carry out a program--
(A) to develop advanced cybersecurity applications
and technologies for the energy sector--
(i) to identify and mitigate
vulnerabilities, including--
(I) dependencies on other critical
infrastructure; and
(II) impacts from weather and fuel
supply; and
(ii) to advance the security of field
devices, third-party control systems, and
applications, including--
(I) systems for generation,
transmission, distribution, end use,
and market functions;
(II) specific electric grid
elements including advanced metering,
demand response, distributed
generation, and electricity storage;
(III) forensic analysis of infected
systems; and
(IV) secure communications;
(B) to leverage electric grid architecture as a
means to assess risks to the energy sector, including
by implementing an all-hazards approach to
communications infrastructure, control systems
architecture, and power systems architecture;
(C) to perform pilot demonstration projects with
the energy sector to gain experience with new
technologies; and
(D) to develop workforce development curricula for
energy sector-related cybersecurity.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $65,000,000 for
each of fiscal years 2017 through 2025.
(d) Energy Sector Component Testing for Cyberresilience Program.--
(1) In general.--The Secretary shall carry out a program--
(A) to establish a cybertesting and mitigation
program to identify vulnerabilities of energy sector
supply chain products to known threats;
(B) to oversee third-party cybertesting; and
(C) to develop procurement guidelines for energy
sector supply chain components.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $15,000,000 for
each of fiscal years 2017 through 2025.
(e) Energy Sector Operational Support for Cyberresilience
Program.--
(1) In general.--The Secretary may carry out a program--
(A) to enhance and periodically test--
(i) the emergency response capabilities of
the Department; and
(ii) the coordination of the Department
with other agencies, the National Laboratories,
and private industry;
(B) to expand cooperation of the Department with
the public sector and intelligence communities for
energy sector-related threat collection and analysis;
(C) to enhance the tools of the Department and ES-
ISAC for monitoring the status of the energy sector;
(D) to expand industry participation in ES-ISAC;
and
(E) to provide technical assistance to small
electric utilities for purposes of assessing
cybermaturity level.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2017 through 2025.
(f) Modeling and Assessing Energy Infrastructure Risk.--
(1) In general.--The Secretary shall develop an advanced
energy security program to secure energy networks and
applications, including electric, natural gas, and oil
exploration, transmission, and delivery.
(2) Security and resiliency objective.--The objective of
the program developed under paragraph (1) is to increase the
functional preservation of the electric grid operations or
natural gas and oil operations in the face of natural and
human-made threats and hazards, including electric magnetic
pulse and geomagnetic disturbances.
(3) Eligible activities.--In carrying out the program
developed under paragraph (1), the Secretary may--
(A) develop capabilities to identify
vulnerabilities and critical components that pose major
risks to grid security if destroyed or impaired;
(B) provide modeling at the national level to
predict impacts from natural or human-made events;
(C) develop a maturity model for physical security
and cybersecurity;
(D) conduct exercises and assessments to identify
and mitigate vulnerabilities to the electric grid,
including providing mitigation recommendations;
(E) conduct research hardening solutions for
critical components of the electric grid;
(F) conduct research mitigation and recovery
solutions for critical components of the electric grid;
and
(G) provide technical assistance to States and
other entities for standards and risk analysis.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2017 through 2025.
(g) Leveraging Existing Programs.--The programs established under
this section shall be carried out consistent with--
(1) the report of the Department entitled ``Roadmap to
Achieve Energy Delivery Systems Cybersecurity'' and dated 2011;
(2) existing programs of the Department; and
(3) any associated strategic framework that links together
academic and National Laboratory researchers, electric
utilities, manufacturers, and any other relevant private
industry organizations, including the Electricity Sub-sector
Coordinating Council.
(h) Study.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with the
Federal Energy Regulatory Commission and the North American
Electric Reliability Corporation, shall conduct a study to
explore alternative management structures and funding
mechanisms to expand industry membership and participation in
ES-ISAC.
(2) Report.--The Secretary shall submit to the appropriate
committees of Congress a report describing the results of the
study conducted under paragraph (1).
Subtitle D--Capacity Markets Study
SEC. 1031. GAO CAPACITY MARKET IMPACT STUDY.
Not later than 180 days after the date of enactment of this Act,
the Comptroller General of the United States shall--
(1) conduct a study of the effects of forward capacity
auctions or other capacity mechanisms that have been
established by Independent System Operators or Regional
Transmission Organizations on--
(A) consumer prices for electricity;
(B) the installation of new electrical generation
systems;
(C) the preservation of existing electrical
generation systems; and
(D) competition in energy markets, including the
potential for the use of undue market power or
manipulation in the auctions; and
(2) submit to the appropriate committees of Congress a
report describing the results of the study conducted under
paragraph (1), including an assessment of whether the auctions
or capacity mechanisms are producing rates that are just and
reasonable.
Subtitle E--Severe Coal Supply Emergency Response
SEC. 1041. SEVERE COAL SUPPLY EMERGENCY RESPONSE.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Surface
Transportation Board.
(2) Electric reliability organization.--The term ``Electric
Reliability Organization'' has the meaning given the term in
section 215 of the Federal Power Act (16 U.S.C. 824o).
(3) Form oe-417.--The term ``Form OE-417'' means the form
entitled ``Electric Emergency Incident and Disturbance Report''
(or a successor form) and filed in accordance with the Federal
Energy Administration Act of 1974 (15 U.S.C. 761 et seq.).
(4) Severe coal supply emergency.--The term ``severe coal
supply emergency'' means a coal supply deficiency reported to
the Department on Form OE-417.
(b) Coordination and Report.--
(1) Reporting duty.--On the filing of a Form OE-417 that
reports a severe coal supply emergency, the Secretary shall
notify the Board and the Federal Energy Regulatory Commission.
(2) Consultation and coordination.--The Secretary, the
Board, the Federal Energy Regulatory Commission, and, as
appropriate, the Electric Reliability Organization, shall, to
the maximum extent practicable, consult and coordinate with
each other to alleviate and prevent recurrences of a severe
coal supply emergency.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with the
Board, the Commission, and, as appropriate, the Electric
Reliability Organization, shall submit a report to Congress
that analyzes and includes recommendations with respect to--
(A) the effects of rail congestion on the flow of
energy commodities such as coal;
(B) the effects of rail congestion on the
reliability of the bulk-power system (as that term is
defined in section 215 of the Federal Power Act (16
U.S.C. 824o));
(C) the advisability of creating a minimum coal
stockpile requirement; and
(D) other appropriate measures that could prevent
the development or recurrence of severe coal supply
emergencies.
Subtitle F--Energy Markets
SEC. 1051. ENHANCED INFORMATION ON CRITICAL ENERGY SUPPLIES.
(a) In General.--Section 205 of the Department of Energy
Organization Act (42 U.S.C. 7135) is amended by adding at the end the
following:
``(n) Collection of Information on Critical Energy Supplies.--
``(1) In general.--To ensure transparency of information
relating to energy infrastructure and product ownership in the
United States and improve the ability to evaluate the energy
security of the United States, the Administrator, in
consultation with other Federal agencies (as necessary),
shall--
``(A) not later than 120 days after the date of
enactment of this subsection, develop and provide
notice of a plan to collect, in cooperation with the
Commodity Futures Trade Commission, information
identifying all oil inventories, and other physical oil
assets (including all petroleum-based products and the
storage of such products in off-shore tankers), that
are owned by the 50 largest traders of oil contracts
(including derivative contracts), as determined by the
Commodity Futures Trade Commission; and
``(B) not later than 90 days after the date on
which notice is provided under subparagraph (A),
implement the plan described in that subparagraph.
``(2) Information.--The plan required under paragraph (1)
shall include a description of the plan of the Administrator
for collecting company-specific data, including--
``(A) volumes of product under ownership; and
``(B) storage and transportation capacity
(including owned and leased capacity).
``(3) Protection of proprietary information.--Section 12(f)
of the Federal Energy Administration Act of 1974 (15 U.S.C.
771(f)) shall apply to information collected under this
subsection.
``(o) Collection of Information on Storage Capacity for Oil and
Natural Gas.--
``(1) In general.--Not later than 90 days after the date of
enactment of this subsection, the Administrator of the Energy
Information Administration shall collect information
quantifying the commercial storage capacity for oil and natural
gas in the United States.
``(2) Updates.--The Administrator shall update annually the
information required under paragraph (1).
``(3) Protection of proprietary information.--Section 12(f)
of the Federal Energy Administration Act of 1974 (15 U.S.C.
771(f)) shall apply to information collected under this
subsection.
``(p) Financial Market Analysis Office.--
``(1) Establishment.--There shall be within the Energy
Information Administration a Financial Market Analysis Office,
headed by a director, who shall report directly to the
Administrator of the Energy Information Administration.
``(2) Duties.--The Office shall--
``(A) be responsible for analysis of the financial
aspects of energy markets;
``(B) review the reports required by section
1053(c) of the American Energy Innovation Act, in
advance of the submission of the reports to Congress;
and
``(C) not later than 1 year after the date of
enactment of this subsection--
``(i) make recommendations to the
Administrator of the Energy Information
Administration that identify and quantify any
additional resources that are required to
improve the ability of the Energy Information
Administration to more fully integrate
financial market information into the analyses
and forecasts of the Energy Information
Administration, including the role of energy
futures contracts, energy commodity swaps, and
derivatives in price formation for oil;
``(ii) conduct a review of implications of
policy changes and changes in how crude oil and
refined petroleum products are transported with
respect to price formation of crude oil and
refined petroleum products; and
``(iii) notify the Committee on Energy and
Natural Resources, and the Committee on
Appropriations, of the Senate and the Committee
on Energy and Commerce, and the Committee on
Appropriations, of the House of Representatives
of the recommendations described in clause (i).
``(3) Analyses.--The Administrator of the Energy
Information Administration shall take analyses by the Office
into account in conducting analyses and forecasting of energy
prices.''.
(b) Conforming Amendment.--Section 645 of the Department of Energy
Organization Act (42 U.S.C. 7255) is amended by inserting ``(15 U.S.C.
3301 et seq.) and the Natural Gas Act (15 U.S.C. 717 et seq.)'' after
``Natural Gas Policy Act of 1978''.
SEC. 1052. WORKING GROUP ON ENERGY MARKETS.
(a) Establishment.--There is established a Working Group on Energy
Markets (referred to in this subtitle as the ``Working Group'').
(b) Composition.--The Working Group shall be composed of--
(1) the Secretary;
(2) the Secretary of the Treasury;
(3) the Chairman of the Federal Energy Regulatory
Commission;
(4) the Chairman of Federal Trade Commission;
(5) the Chairman of the Securities and Exchange Commission;
(6) the Chairman of the Commodity Futures Trading
Commission; and
(7) the Administrator of the Energy Information
Administration.
(c) Chairperson.--The Secretary shall serve as the Chairperson of
the Working Group.
(d) Compensation.--A member of the Working Group shall serve
without additional compensation for the work of the member of the
Working Group.
(e) Purpose and Function.--The Working Group shall--
(1) investigate the effect of increased financial
investment in energy commodities on energy prices and the
energy security of the United States;
(2) recommend to the President and Congress laws (including
regulations) that may be needed to prevent excessive
speculation in energy commodity markets in order to prevent or
minimize the adverse impact of excessive speculation on energy
prices on consumers and the economy of the United States; and
(3) review energy security implications of developments in
international energy markets.
(f) Administration.--The Secretary shall provide the Working Group
with such administrative and support services as may be necessary for
the performance of the functions of the Working Group.
(g) Cooperation of Other Agencies.--The heads of Executive
departments, agencies, and independent instrumentalities shall, to the
extent permitted by law, provide the Working Group with such
information as the Working Group requires to carry out this section.
(h) Consultation.--The Working Group shall consult, as appropriate,
with representatives of the various exchanges, clearinghouses, self-
regulatory bodies, other major market participants, consumers, and the
general public.
SEC. 1053. STUDY OF REGULATORY FRAMEWORK FOR ENERGY MARKETS.
(a) Study.--The Working Group shall conduct a study--
(1) to identify the factors that affect the pricing of
crude oil and refined petroleum products, including an
examination of the effects of market speculation on prices; and
(2) to review and assess--
(A) existing statutory authorities relating to the
oversight and regulation of markets critical to the
energy security of the United States; and
(B) the need for additional statutory authority for
the Federal Government to effectively oversee and
regulate markets critical to the energy security of the
United States.
(b) Elements of Study.--The study shall include--
(1) an examination of price formation of crude oil and
refined petroleum products;
(2) an examination of relevant international regulatory
regimes; and
(3) an examination of the degree to which changes in energy
market transparency, liquidity, and structure have influenced
or driven abuse, manipulation, excessive speculation, or
inefficient price formation.
(c) Report and Recommendations.--The Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Energy and Commerce of the House of Representatives
quarterly progress reports during the conduct of the study under this
section, and a final report not later than 1 year after the date of
enactment of this Act, that--
(1) describes the results of the study; and
(2) provides options and the recommendations of the Working
Group for appropriate Federal coordination of oversight and
regulatory actions to ensure transparency of crude oil and
refined petroleum product pricing and the elimination of
excessive speculation, including recommendations on data
collection and analysis to be carried out by the Financial
Market Analysis Office established by section 205(p) of the
Department of Energy Organization Act (42 U.S.C. 7135(p)).
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
Subtitle G--Transmission
SEC. 1061. REPORT BY TRANSMISSION ORGANIZATIONS ON DISTRIBUTED ENERGY
RESOURCES AND MICROGRID SYSTEMS.
(a) Definitions.--In this section:
(1) Distributed energy resource.--The term ``distributed
energy resource'' means an electricity supply resource that, as
permitted by State law--
(A)(i) is interconnected to the electric system
operated by a transmission organization at or below
69kV; and
(ii) is subject to dispatch by the transmission
organization; and
(B)(i) generates electricity using any primary
energy source, including solar energy and other
renewable resources; or
(ii) stores energy and is capable of supplying
electricity to the electric system operated by the
transmission organization from the storage reservoir.
(2) Electric generating capacity resource.--The term
``electric generating capacity resource'' means an electric
generating resource, as measured by the maximum load-carrying
ability of the resource, exclusive of station use and planned,
unplanned, or other outage or derating, that is subject to
dispatch by a transmission organization to meet the resource
adequacy needs of the systems operated by the transmission
organization.
(3) Microgrid system.--The term ``microgrid system'' means
an electrically distinct system under common control that--
(A) serves an electric load at or below 69kV from a
distributed energy resource or electric generating
capacity resource; and
(B) is subject to dispatch by a transmission
organization.
(4) Transmission organization.--The term ``transmission
organization'' has the meaning given the term in section 3 of
the Federal Power Act (16 U.S.C. 796).
(b) Report.--
(1) Notice.--Not later than 14 days after the date of
enactment of this section, the Commission shall submit to each
transmission organization notice that the transmission
organization is required to file with the Commission a report
in accordance with paragraph (2).
(2) Report.--Not later than 180 days after the date on
which a transmission organization receives a notice under
paragraph (1), the transmission organization shall submit to
the Commission a report that--
(A)(i) identifies distributed energy resources and
micro-grid systems that are subject to dispatch by the
transmission organization as of the date of the report;
and
(ii) describes the fuel sources and operational
characteristics of such distributed energy resources
and micro-grid systems, including, to the maximum
extent practicable, a discussion of the benefits and
costs associated with the distributed energy resources
and microgrid systems identified under clause (i);
(B) evaluates, with due regard for operational and
economic benefits and costs, the potential for
distributed energy resources and microgrid systems to
be deployed to the transmission organization over the
short- and long-term periods in the planning cycle of
the transmission organization; and
(C) identifies--
(i) over the short- and long-term periods
in the planning cycle of the transmission
organization, barriers to the deployment to the
transmission organization of distributed energy
resources and microgrid systems; and
(ii) potential changes to the operational
requirements for, or charges associated with,
the interconnection of distributed energy
resources and microgrid systems to the
transmission organization that would reduce the
barriers identified under clause (i).
SEC. 1062. NET METERING STUDY GUIDANCE.
Title XVIII of Energy Policy Act of 2005 (Public Law 109-58; 119
Stat. 1122) is amended by adding at the end the following:
``SEC. 1841. NET ENERGY METERING STUDY.
``(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary shall--
``(1) issue guidance on criteria required to be included in
studies of net metering conducted by the Department; and
``(2) undertake a study of net energy metering.
``(b) Requirements and Contents.--The model guidance issued under
subsection (a) shall clarify without prejudice to other study criteria
that any study of net energy metering, including the study conducted by
the Department under subsection (a) shall--
``(1) be publicly available; and
``(2) assess benefits and costs of net energy metering,
including--
``(A) load data, including hourly profiles;
``(B) distributed generation production data;
``(C) best available technology, including inverter
capability; and
``(D) benefits and costs of distributed energy
deployment, including--
``(i) environmental benefits;
``(ii) changes in electric system
reliability;
``(iii) changes in peak power requirements;
``(iv) provision of ancillary services,
including reactive power;
``(v) changes in power quality;
``(vi) changes in land-use effects;
``(vii) changes in right-of-way acquisition
costs;
``(viii) changes in vulnerability to
terrorism; and
``(ix) changes in infrastructure
resilience.''.
TITLE II--MODERNIZING INFRASTRUCTURE
Subtitle A--QER Recommendations
SEC. 2001. NATURAL GAS DISTRIBUTION SYSTEM IMPROVEMENT PROGRAM.
Part 4 of title II of the National Energy Conservation Policy Act
(42 U.S.C. 8231 et seq.) is amended by adding at the end the following:
``SEC. 256. ESTABLISHMENT OF A NATURAL GAS DISTRIBUTION SYSTEM
IMPROVEMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Leak-prone distribution pipeline.--The term `leak-
prone distribution pipeline' means a natural gas distribution
system pipeline constructed of leak prone materials, such as
cast iron or bare steel.
``(2) Low-income household.--The term `low-income
household' means a household--
``(A) the combined income of which is equal to or
less than 200 percent of the poverty level; or
``(B) determined to be eligible by the State in
which the household is located under the low-income
home energy assistance program established under the
Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.) using an eligibility standard
based on--
``(i) 150 percent of the poverty level; or
``(ii) 60 percent of the median income in
the State.
``(b) Establishment.--The Secretary shall make grants to eligible
entities on a competitive basis to accelerate or expand utility
programs that improve the safety and environmental performance of
natural gas distribution systems.
``(c) Eligibility.--
``(1) In general.--Except as provided in paragraph (2), to
be eligible to receive a grant under subsection (b), an entity
shall be--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico;
``(D) any other territory or possession of the
United States; or
``(E) a tribal organization (as defined in section
4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)).
``(2) Other entities.--If an entity described in
subparagraphs (A) through (D) of paragraph (1) does not apply
for a grant under subsection (b), units of general purpose
local government, community action agencies, and other
nonprofit agencies located in that entity shall be eligible to
apply for a grant.
``(d) Use of Funds.--An eligible entity receiving a grant under
subsection (b)--
``(1) shall only use grant amounts for new or expanded
programs that are approved by a public utility commission (or
an equivalent entity) after April 21, 2015; and
``(2) may use grant amounts--
``(A) to accelerate the rate of replacement and
repair of leak-prone distribution pipelines; and
``(B) for directed inspection and maintenance
programs.
``(e) Low-income Assistance.--As a condition of receiving a grant
under subsection (b), an eligible entity shall ensure that the grant
amounts are used to offset the cost to low-income households of
incremental increases in household bills associated with system
upgrades using grant amounts.
``(f) Application Process.--An eligible entity desiring a grant
under subsection (b) shall submit to the Secretary an application at
such time, in such manner, and containing such information as the
Secretary may require.
``(g) Selection.--In selecting grant recipients, the Secretary
shall--
``(1) prioritize eligible entities that emphasize safety
over other program benefits; and
``(2) with respect to the application proposal of an
eligible entity, consider and estimate the net benefits of the
proposed--
``(A) magnitude of methane emission reductions;
``(B) use of innovative technology and policy
approaches;
``(C) number of low-income households estimated to
benefit from the proposed program; and
``(D) demonstrated coordination with a broad range
of stakeholders, including the public utility
commission (or equivalent entity), consumer advocates,
and utilities.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $3,500,000,000 for the period of
fiscal years 2016 through 2019.''.
SEC. 2002. STRATEGY FOR MANAGING THE RISKS ASSOCIATED WITH THE LOSS OR
DISRUPTION OF POWER FROM LARGE POWER TRANSFORMERS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 224. STRATEGY FOR MANAGING THE RISKS ASSOCIATED WITH THE LOSS OR
DISRUPTION OF POWER FROM LARGE POWER TRANSFORMERS.
``(a) Establishment.--The Secretary of Energy (referred to in this
section as the `Secretary'), in coordination with the Secretary of
Homeland Security and the heads of other Federal agencies, States, and
representatives of the electric industry, shall develop a strategy for
identifying and managing the risks associated with the loss of power
from large power transformers.
``(b) Reserve.--In developing the strategy under subsection (a),
the Secretary shall evaluate the establishment of 1 or more transformer
reserves as an approach to mitigating the risks described in subsection
(a).
``(c) Report.--Not later than 1 year after the date of enactment of
this section, the Secretary shall submit to the appropriate committees
of Congress a report that--
``(1) describes the findings, conclusions, and
recommendations of the Secretary with respect to the strategy
required to be developed under subsection (a); and
``(2) includes an implementation plan for that strategy.
``(d) Strategic Transformer Reserve.--On submission of the report
under subsection (c), the Secretary may establish a Strategic
Transformer Reserve.''.
SEC. 2003. CONSOLIDATION OF RELEASE AUTHORITIES.
(a) Northeast Home Heating Oil Reserve.--The Energy Policy and
Conservation Act is amended by striking section 183 (42 U.S.C. 6250b)
and inserting the following:
``SEC. 183. CONDITIONS FOR RELEASE.
``The Secretary may sell products from the Reserve only after the
President makes a finding of a severe energy supply interruption in
accordance with section 161(d), except that references to `petroleum
products' and the `Strategic Petroleum Reserve' in that section shall
be deemed to be references to `petroleum distillate' and the `Northeast
Home Heating Oil Reserve', respectively.''.
(b) Northeast Gasoline Supply Reserve.--The Secretary may sell
products from the Northeast Gasoline Supply Reserve only after making a
finding of a severe energy supply interruption in accordance with
section 161(d) of the Energy Policy and Conservation Act (42 U.S.C.
6241(d)), except that references to ``petroleum products'' and the
``Strategic Petroleum Reserve'' in that section shall be deemed to be
references to ``gasoline'' and the ``Northeast Gasoline Supply
Reserve'', respectively.
SEC. 2004. MODERNIZATION OF STRATEGIC PETROLEUM RESERVE RELEASE
AUTHORITIES.
Section 161(d)(2) of the Energy Policy and Conservation Act (42
U.S.C. 6241(d)(2)) is amended--
(1) in subparagraph (A), by striking ``(A) an emergency''
and inserting the following:
``(A)(i) an emergency'';
(2) by redesignating subparagraphs (B) and (C) as clauses
(ii) and (iii), respectively;
(3) in clause (ii) (as so redesignated), by striking ``has
resulted'' and inserting ``will likely result'';
(4) in clause (iii) (as so redesignated), by striking the
period at the end and inserting ``; or''; and
(5) by adding at the end the following:
``(B) an interruption in the global oil supply
exists that is likely to cause a severe increase in the
price of domestic petroleum products, regardless of
whether the interruption results in a loss of oil
imports to the United States.''.
SEC. 2005. OPTIMIZATION OF EMERGENCY RESPONSE CAPABILITY OF STRATEGIC
PETROLEUM RESERVE.
(a) In General.--Part B of title I of the Energy Policy and
Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the
end the following:
``SEC. 170. OPTIMIZATION OF EMERGENCY RESPONSE CAPABILITY OF STRATEGIC
PETROLEUM RESERVE.
``(a) Analysis.--The Secretary shall carry out an analysis,
including detailed engineering studies, of the appropriate size and
configuration of the Strategic Petroleum Reserve.
``(b) Funding for SPR Infrastructure and Distribution Systems.--
After performing the analysis under subsection (a) and subject to the
availability of funds, the Secretary may provide funds for Strategic
Petroleum Reserve infrastructure and distribution systems in order to
optimize the ability of the Strategic Petroleum Reserve to protect the
economy of the United States in an emergency supply situation.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000,000 for the period of
fiscal years 2016 through 2019.''.
(b) Conforming Amendment.--The table of contents for the Energy
Policy and Conservation Act is amended by inserting after the item
relating to section 169 the following:
``Sec. 170. Optimization of emergency response capability of Strategic
Petroleum Reserve.''.
Subtitle B--Grid Modernization and Storage
SEC. 2011. DEFINITION OF SECRETARY.
In this subtitle (other than section 2012), the term ``Secretary''
means the Secretary, acting through the Assistant Secretary of the
Office of Electricity Delivery and Energy Reliability.
SEC. 2012. GRID STORAGE PROGRAM.
(a) In General.--The Secretary shall conduct a program of research,
development, and demonstration of electric grid energy storage that
addresses the principal challenges identified in the 2013 Department of
Energy Strategic Plan for Grid Energy Storage.
(b) Areas of Focus.--The program under this section shall focus
on--
(1) materials and electrochemical systems research;
(2) power conversion technologies research;
(3) developing--
(A) empirical and science-based industry standards
to compare the storage capacity, cycle length and
capabilities, and reliability of different types of
electricity storage; and
(B) validation and testing techniques;
(4) other fundamental and applied research critical to
widespread deployment of electricity storage;
(5) device development that builds on results from research
described in paragraphs (1), (2), and (4), including
combinations of power electronics, advanced optimizing
controls, and energy storage as a general purpose element of
the electric grid;
(6) grid-scale testing and analysis of storage devices,
including test-beds and field trials;
(7) cost-benefit analyses that inform capital expenditure
planning for regulators and owners and operators of components
of the electric grid;
(8) electricity storage device safety and reliability,
including potential failure modes, mitigation measures, and
operational guidelines;
(9) standards for storage device performance, control
interface, grid interconnection, and interoperability; and
(10) maintaining a public database of energy storage
projects, policies, codes, standards, and regulations.
(c) Assistance to States.--The Secretary may provide technical and
financial assistance to States, Indian tribes, or units of local
government to participate in or use research, development, or
deployment of technology developed under this section.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $50,000,000 for
each of fiscal years 2017 through 2026.
SEC. 2013. TECHNOLOGY DEMONSTRATION AND THE DISTRIBUTION SYSTEM.
(a) In General.--The Secretary shall establish a grant program to
carry out eligible projects relating to the modernization of the
electric grid, including the application of technologies to improve
observability, advanced controls, and prediction of system performance
on the distribution system.
(b) Eligible Projects.--To be eligible for a grant under subsection
(a), a project shall--
(1) be designed to improve the performance and efficiency
of the future electric grid, while ensuring the continued
provision of safe, secure, reliable, and affordable power; and
(2) demonstrate--
(A) secure integration and management of 2 or more
energy resources, including distributed energy
generation, combined heat and power, microgrids, energy
storage, electric vehicles, energy efficiency, demand
response, and intelligent loads; and
(B) secure integration and interoperability of
communications and information technologies.
(c) Participation.--Projects conducted under subsection (a) shall
include the participation of a partnership consisting of 2 or more
entities that--
(1) may include--
(A) any institution of higher education;
(B) a National Laboratory;
(C) a representative of a State or local
government;
(D) a representative of an Indian tribe; or
(E) a Federal power marketing administration; and
(2) shall include not fewer than 1 of any of--
(A) an investor-owned electric utility;
(B) a publicly owned utility;
(C) a technology provider;
(D) a rural electric cooperative;
(E) a regional transmission organization; or
(F) an independent system operator.
(d) Select Areas of Focus.--
(1) In general.--The Secretary shall ensure that not fewer
than 1 project conducted under subsection (a) is--
(A) a transactive energy project that implements a
system of economic or control mechanisms that optimizes
the dynamic balance of supply and demand across the
electrical infrastructure, using economic value as a
key operational parameter; and
(B) a valuation innovation project that evaluates
or implements markets, rates, and other ways of
appropriately valuing the grid services provided by
demand response, energy efficiency, electric vehicles,
storage, distributed generation, and other generation
technologies to ensure--
(i) appropriate cost-recovery;
(ii) reliability of the distribution grid;
and
(iii) increased penetration of demand
response, energy efficiency, electric vehicles,
storage, distributed generation, and other
generation technologies.
(e) Cybersecurity Plan.--Each project conducted under subsection
(a) shall include the development of a cybersecurity plan approved by
the Secretary.
(f) Privacy Best Practices.--In carrying out this section, the
Secretary shall identify best practices for the implementation of the 5
core concepts of the Department relating to the collection, use,
disclosure, and retention of information, as described in the Voluntary
Code of Conduct of the Department.
(g) Working Groups.--
(1) In general.--The Secretary shall establish 1 or more
working groups, to be composed of representatives of projects
conducted under subsection (a), that shall--
(A) meet periodically to discuss implementation of
the projects, including challenges and potential
solutions held in common by the projects; and
(B) submit to the Secretary such information
resulting from the meetings as the Secretary may
require.
(2) Reports.--The Secretary shall periodically publish
reports and other appropriate materials based on the
information provided by the working groups under paragraph
(1)(B).
SEC. 2014. MICROGRID SYSTEMS FOR ISOLATED AND RESILIENT COMMUNITIES.
(a) Definitions.--In this section:
(1) Hybrid microgrid system.--The term ``hybrid microgrid
system'' means a stand-alone electrical system that--
(A) is comprised of conventional generation and at
least 1 alternative energy resource; and
(B) may use grid-scale energy storage.
(2) Isolated community.--The term ``isolated community''
means a community that is powered by a stand-alone electric
generation and distribution system without the economic and
reliability benefits of connection to a regional electric grid.
(3) Microgrid system.--The term ``microgrid system'' means
a standalone electrical system that uses grid-scale energy
storage.
(4) Strategy.--The term ``strategy'' means the strategy
developed under subsection (b)(2)(B).
(b) Program.--
(1) Establishment.--The Secretary shall establish a program
to promote the development of--
(A) hybrid microgrid systems for isolated
communities; and
(B) microgrid systems to increase the resilience of
critical infrastructure.
(2) Phases.--The program established under paragraph (1)
shall be carried out in phases, including--
(A) phase I, which shall consist of the development
of a feasibility assessment for--
(i) hybrid microgrid systems in isolated
communities; and
(ii) microgrid systems to enhance the
resilience of critical infrastructure;
(B) phase II, which shall consist of the
development of an implementation strategy in accordance
with paragraph (3) to promote the development of hybrid
microgrid systems for isolated communities,
particularly for those communities exposed to extreme
weather conditions and high energy costs, including
electricity, space heating and cooling, and
transportation;
(C) phase III, which shall--
(i) be carried out simultaneously with
phase II; and
(ii) consist of the development of an
implementation strategy to promote the
development of microgrid systems that increase
the resilience of critical infrastructure;
(D) phase IV, which shall consist of cost-shared
demonstration projects that--
(i) are based on the strategies developed
under subparagraph (B); and
(ii) include the development of physical
and cybersecurity plans to take appropriate
measures to protect and secure the electric
grid; and
(E) phase V, which shall establish a benefits
analysis plan to help inform regulators, policymakers,
and industry stakeholders about the affordability,
environmental, and resilience benefits associated with
phases II, III, and IV.
(3) Requirements for strategy.--In developing the strategy
under paragraph (2)(B), the Secretary shall consider--
(A) establishing future targets for the economic
displacement of conventional generation using hybrid
microgrid systems, including displacement of
conventional generation used for electric power
generation, heating and cooling, and transportation;
(B) the potential for renewable resources,
including wind, solar, and hydropower, to be integrated
into a hybrid microgrid system;
(C) opportunities for improving the efficiency of
existing hybrid microgrid systems;
(D) the capacity of the local workforce to operate,
maintain, and repair a hybrid microgrid system;
(E) opportunities to develop the capacity of the
local workforce to operate, maintain, and repair a
hybrid microgrid system;
(F) leveraging existing capacity within local or
regional research organizations, such as organizations
based at institutions of higher education, to support
development of hybrid microgrid systems, including by
testing novel components and systems prior to field
deployment;
(G) the need for basic infrastructure to develop,
deploy, and sustain a hybrid microgrid system;
(H) input of traditional knowledge from local
leaders of isolated communities in the development of a
hybrid microgrid system;
(I) the impact of hybrid microgrid systems on
defense, homeland security, economic development, and
environmental interests;
(J) opportunities to leverage existing interagency
coordination efforts and recommendations for new
interagency coordination efforts to minimize
unnecessary overhead, mobilization, and other project
costs; and
(K) any other criteria the Secretary determines
appropriate.
(c) Collaboration.--The program established under subsection (b)(1)
shall be carried out in collaboration with relevant stakeholders,
including, as appropriate--
(1) States;
(2) Indian tribes;
(3) regional entities and regulators;
(4) units of local government;
(5) institutions of higher education; and
(6) private sector entities.
(d) Report.--Not later than 180 days after the date of enactment of
this Act, and annually thereafter, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Energy and Commerce of the House of Representatives a
report on--
(1) the efforts to implement the program established under
subsection (b)(1); and
(2) the status of the strategy developed under subsection
(b)(2)(B).
SEC. 2015. ELECTRIC SYSTEM GRID ARCHITECTURE, SCENARIO DEVELOPMENT, AND
MODELING.
(a) Grid Architecture and Scenario Development.--
(1) In general.--Subject to paragraph (2), the Secretary
shall establish and facilitate a collaborative process to
develop model grid architecture and a set of future scenarios
for the electric system to examine the impacts of different
combinations of resources (including different quantities of
distributed energy resources and large-scale, central
generation) on the electric grid.
(2) Market structure.--The grid architecture and scenarios
developed under paragraph (1) shall account for differences in
market structure, including an examination of the potential for
stranded costs in each type of market structure.
(3) Findings.--Based on the findings of grid architecture
developed under paragraph (1), the Secretary shall--
(A) determine whether any additional standards are
necessary to ensure the interoperability of grid
systems and associated communications networks; and
(B) if the Secretary makes a determination that
additional standards are necessary under subparagraph
(A), make recommendations for additional standards.
(b) Modeling.--Subject to subsection (c), the Secretary shall--
(1) conduct modeling based on the scenarios developed under
subsection (a); and
(2) analyze and evaluate the technical and financial
impacts of the models to assist States, utilities, and other
stakeholders in--
(A) enhancing strategic planning efforts;
(B) avoiding stranded costs; and
(C) maximizing the cost-effectiveness of future
grid-related investments.
(c) Input.--The Secretary shall develop the scenarios and conduct
the modeling and analysis under subsections (a) and (b) with
participation or input, as appropriate, from--
(1) the National Laboratories;
(2) States;
(3) State regulatory authorities;
(4) transmission organizations;
(5) representatives of the electric industry;
(6) academic institutions;
(7) independent research institutes; and
(8) other entities.
SEC. 2016. VOLUNTARY MODEL PATHWAYS.
(a) Establishment of Voluntary Model Pathways.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall initiate the
development of voluntary model pathways for modernizing the
electric grid through a collaborative, public-private effort
that--
(A) produces illustrative policy pathways that can
be adapted for State and regional applications by
regulators and policymakers;
(B) facilitates the modernization of the electric
grid to achieve the objectives described in paragraph
(2);
(C) ensures a reliable, resilient, affordable,
safe, and secure electric system; and
(D) acknowledges and provides for different
priorities, electric systems, and rate structures
across States and regions.
(2) Objectives.--The pathways established under paragraph
(1) shall facilitate achievement of the following objectives:
(A) Near real-time situational awareness of the
electric system.
(B) Data visualization.
(C) Advanced monitoring and control of the advanced
electric grid.
(D) Enhanced certainty for private investment in
the electric system.
(E) Increased innovation.
(F) Greater consumer empowerment.
(G) Enhanced grid resilience, reliability, and
robustness.
(H) Improved--
(i) integration of distributed energy
resources;
(ii) interoperability of the electric
system; and
(iii) predictive modeling and capacity
forecasting.
(3) Steering committee.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall establish a
steering committee to facilitate the development of the
pathways under paragraph (1), to be composed of members
appointed by the Secretary, consisting of persons with
appropriate expertise representing a diverse range of interests
in the public, private, and academic sectors, including
representatives of--
(A) the Smart Grid Task Force; and
(B) the Smart Grid Advisory Committee.
(b) Technical Assistance.--The Secretary may provide technical
assistance to States, Indian tribes, or units of local government to
adopt 1 or more elements of the pathways developed under subsection
(a)(1).
SEC. 2017. PERFORMANCE METRICS FOR ELECTRICITY INFRASTRUCTURE
PROVIDERS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Secretary shall submit to the appropriate committees
of Congress a report that includes--
(1) an evaluation of the performance of the electric grid
as of the date of the report; and
(2) a description of the quantified costs and benefits
associated with the changes evaluated under the scenarios
developed under section 2015.
(b) Considerations for Development of Metrics.--In developing
metrics for evaluating and quantifying the electric grid under
subsection (a), the Secretary shall consider--
(1) standard methodologies for calculating improvements or
deteriorations in the performance metrics, such as reliability,
grid efficiency, power quality, consumer satisfaction,
sustainability, and financial incentives;
(2) standard methodologies for calculating value to
ratepayers, including broad economic and related impacts from
improvements to the performance metrics;
(3) appropriate ownership and operating roles for electric
utilities that would enable improved performance through the
adoption of emerging, commercially available or advanced grid
technologies or solutions, including--
(A) multicustomer microgrids;
(B) distributed energy resources;
(C) energy storage;
(D) electric vehicles;
(E) electric vehicle charging infrastructure;
(F) integrated information and communications
systems;
(G) transactive energy systems; and
(H) advanced demand management systems; and
(4) with respect to States, the role of the grid operator
in enabling a robust future electric system to ensure that--
(A) electric utilities remain financially viable;
(B) electric utilities make the needed investments
that ensure a reliable, secure, and resilient grid; and
(C) costs incurred to transform to an integrated
grid are allocated and recovered responsibly,
efficiently, and equitably.
SEC. 2018. STATE AND REGIONAL DISTRIBUTION PLANNING.
(a) In General.--On the request of a State or regional
organization, the Secretary shall partner with States and regional
organizations to facilitate the development of State and regional
electricity distribution plans by--
(1) conducting a resource assessment and analysis of future
demand and distribution requirements; and
(2) developing open source tools for State and regional
planning and operations.
(b) Risk and Security Analysis.--The assessment under subsection
(a)(1) shall include--
(1) the evaluation of the physical and cybersecurity needs
of an advanced distribution management system and the
integration of distributed energy resources; and
(2) advanced use of grid architecture to analyze risks in
an all-hazards approach that includes communications
infrastructure, control systems architecture, and power systems
architecture.
(c) Technical Assistance.--For the purpose of developing State and
regional electricity distribution plans, the Secretary shall provide
technical assistance to--
(1) States;
(2) regional reliability entities; and
(3) other distribution asset owners and operators.
SEC. 2019. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary to carry
out sections 2013 through 2018 $200,000,000 for each of fiscal years
2017 through 2026.
SEC. 2020. STATE CONSIDERATION OF RESILIENCE.
(a) Adoption of Standards.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(20) Resilience.--
``(A) Definition of electric grid resilience.--The
term `electric grid resilience' means the ability of
the electric grid to adapt to changing conditions and
withstand and rapidly recover from disruptions.
``(B) Required consideration.--Each electric
utility shall incorporate into the regular planning
process of the electric utility consideration of
investments in electric grid resilience.
``(C) Factors.--Consideration under subparagraph
(B) shall include an evaluation of potential benefits
of enhancing electric grid resilience, including--
``(i) system stability under severe and
nontraditional hazards;
``(ii) adaptation to region-specific
natural threats and vulnerabilities;
``(iii) adaptation to climate change-
related extreme weather disruptions;
``(iv) support provided to interdependent
critical infrastructures reliant on energy
services to operate;
``(v) reduced costs under normal operating
conditions;
``(vi) enhanced distributed generation and
microgrid functionality to operate as an
integrated energy system in intentional
islanding mode;
``(vii) localized energy generation that
avoids incurrence of transmission and
distribution losses;
``(viii) system operational flexibility;
and
``(ix) ancillary environmental benefits,
including greenhouse gas reductions.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(7)(A) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall--
``(i) commence the consideration referred to in
section 111; or
``(ii) set a hearing date for such consideration,
with respect to the standard established by paragraph
(20) of section 111(d).
``(B) Not later than 2 years after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall--
``(i) complete the consideration required under
subparagraph (A); and
``(ii) make the determination referred to in
section 111 with respect to the standard established by
paragraph (20) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following: ``In the case of
the standard established by paragraph (20) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of that paragraph.''.
Subtitle C--Advanced Manufacturing
SEC. 2021. ADVANCED MANUFACTURING OFFICE.
(a) Establishment.--The Secretary shall establish, within the
Department, the Advanced Manufacturing Office (referred to in this
subtitle as the ``Office'')--
(1) to carry out basic and applied research, development,
and demonstration of new, energy-efficient processes and
materials--
(A) at a scale adequate to prove the value of the
processes and materials to manufacturers in multiple
industries; and
(B) that facilitate investments and commercial
scale-up;
(2) to focus on the conduct of activities that--
(A) use new technology and processes to reuse
existing products or update existing processes to
achieve energy efficiency and promote energy savings;
and
(B) make use of new and emerging processes and
materials;
(3) to improve workforce development in advanced
manufacturing; and
(4) to enable the competitiveness of manufacturers and
energy efficiency of manufacturing in the United States by
developing broadly applicable technologies for energy-intensive
and energy-dependent manufacturing by supporting research and
development directed towards--
(A) advanced and critical materials that provide
energy savings and efficiency;
(B) emerging topics, technology, and processes in
advanced manufacturing that promote energy savings;
(C) manufacturing platforms for advanced energy
technologies; and
(D) strategies to address current and future
workforce needs within the manufacturing sector.
(b) Industry Participation.--To the maximum extent practicable, the
Office shall carry out activities in partnership or collaboration with
relevant industry stakeholders.
(c) Interagency and Intra-agency Coordination.--The Secretary shall
coordinate research, development, demonstration, and commercial
application activities of the Office among--
(1) relevant programs within the Department, including--
(A) the Office of Energy Efficiency and Renewable
Energy;
(B) the Office of Fossil Energy;
(C) the Office of Nuclear Energy;
(D) ARPA-E;
(E) the Office of Energy Policy and Systems
Analysis; and
(F) other offices of the Department, as determined
to be appropriate by the Secretary; and
(2) relevant technology research and development programs
and workforce training programs in other Federal agencies.
SEC. 2022. NATIONAL ADVANCED MANUFACTURING PLAN.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of Commerce, shall enter into an agreement with the National
Academies to develop a national plan for smart and advanced
manufacturing technology development and deployment to improve the
productivity, competitiveness, and energy efficiency of the
manufacturing sector of the United States.
(b) Contents.--
(1) In general.--The plan developed under subsection (a)
shall identify areas in which actions by the Secretary and the
heads of other relevant Federal agencies would--
(A) accelerate the development, deployment, and
adoption of smart and advanced manufacturing
technologies and processes;
(B) result in greater energy efficiency of, and
lower environmental impacts for, all United States
manufacturers;
(C) enhance competitiveness and strengthen the
manufacturing sectors of the United States; and
(D) improve workforce training, career and
technical education, and incumbent worker training
between manufacturing industry and training providers.
(2) Inclusions.--In identifying agency actions under
paragraph (1), the Secretary shall include--
(A) an assessment of actions of the Department
relating to smart and advanced manufacturing that were
carried out before or after the date of enactment of
this Act;
(B) the establishment of voluntary interconnection
protocols and performance standards;
(C) the commercialization of existing research
results;
(D) an assessment of existing high-performance and
cloud computing infrastructure and opportunities for
those technologies to play a role in the design and
production of advanced manufacturing technology;
(E) an assessment of the research and development
opportunities for supply chains related to the
manufacture of carbon fiber composite, critical
materials, advanced materials, and semiconductors;
(F) identification and assessment of financial
incentives or demonstration projects that could
accelerate the commercialization of advanced
technology;
(G) an assessment and prioritization of emerging
technologies and processes with the potential to
increase manufacturing competitiveness;
(H) an analysis of the regions and industries that
would benefit the most from implementing smart
manufacturing technologies;
(I) an assessment of--
(i) the lessons learned through the decades
long partnership of the Department with the
automotive industry; and
(ii) how lessons learned could be applied
to interactions with other industries
(including the aerospace industry) and
including--
(I) an analysis of the resources
needed to expand partnerships with the
Advanced Manufacturing Office to other
industries; and
(II) an assessment of which
industries and technologies would
benefit most from partnering with the
Department, based on--
(aa) cost savings;
(bb) energy savings;
(cc) job creation; and
(dd) environmental impacts;
and
(J) an assessment of current and future workforce
needs within the advanced manufacturing industry that
identifies any significant skill gaps and provides
suggestions on ways to address the gaps.
(c) Biennial Revisions and Report.--
(1) Biennial revisions.--Not later than 2 years after the
date on which the Secretary completes the plan under subsection
(a), and not less frequently than once every 2 years
thereafter, the Secretary shall revise the plan to account for
advancements in information and communication technology and
manufacturing needs after the completion of the initial plan.
(2) Report.--The Secretary shall submit to Congress after
each revision under paragraph (1) a report on the status of
implementation of the plan established under subsection (a).
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the study under this section $25,000,000.
SEC. 2023. ADVANCED MANUFACTURING SUPPLY CHAIN REPORT.
(a) In General.--The Secretary shall enter into an arrangement with
the National Academy of Sciences under which the National Academy of
Sciences shall develop a report that evaluates the manufacturing supply
chains for various advanced manufacturing technologies, including--
(1) an assessment of the strength, weaknesses,
opportunities, and obstacles in the supply chains of advanced
manufacturing technologies, including carbon fiber composite
manufacturing, critical materials, advanced materials, and
semiconductors;
(2) analyses of--
(A) the ways in which the supply chains have
changed during the 25-year period preceding the date of
enactment of this Act;
(B) whether the supply chains have been disrupted
by unfair foreign competition;
(C) the impact of global trade on the supply
chains; and
(D) current trends relating to the supply chains;
(3) for each technology and process assessed, an analysis
of which sections of the supply chain are critical for the
United States to remain or become competitive in the
manufacturing of the technology; and
(4) recommendations on which emerging technologies and
processes the United States should focus on in order to advance
innovation in manufacturing capabilities to increase the
competitiveness of United States manufacturing.
(b) Report.--Not later than 2 years after the date on which the
Secretary enters into the arrangement with the National Academy of
Sciences under subsection (a), the National Academy of Sciences shall
submit to the Secretary, the Committee on Energy and Natural Resources
of the Senate, and the Committee on Energy and Commerce of the House of
Representatives a report that describes the findings and
recommendations of the National Academy of Sciences with respect to the
assessment and analyses conducted under subsection (a).
SEC. 2024. LEVERAGING EXISTING AGENCY PROGRAMS TO ASSIST SMALL AND
MEDIUM MANUFACTURERS.
(a) Collaboration With National Laboratories and Institutions of
Higher Education.--The Office shall work in collaboration with National
Laboratories and institutions of higher education to provide assistance
to small and medium manufacturers with respect to smart manufacturing
technologies and practices.
(b) Expansion of Technical Assistance Programs.--The Secretary
shall expand the scope of technologies covered by the Industrial
Assessment Centers--
(1) to include smart manufacturing technologies and
practices; and
(2) to provide the directors of the Industrial Assessment
Centers with the training and tools necessary to provide to
manufacturers technical assistance in smart manufacturing
technologies and practices, including energy management
systems.
SEC. 2025. ADVANCED MANUFACTURING INNOVATION HUBS.
(a) Definitions.--In this section:
(1) Advanced manufacturing.--The term ``advanced
manufacturing'' means--
(A) a technology, or process that--
(i) depends on the use and coordination of
information, automation, computation, software,
sensing, and networking;
(ii) makes use of new materials or reuses
existing materials; or
(iii) enhances the manufacturing
competitiveness of the United States;
(B) research, development, demonstration, and
commercial application activities necessary to ensure
the long-term, secure, and sustainable supply of
advanced materials; or
(C) any other innovative energy technology area
identified by the Secretary.
(2) Hub.--The term ``Hub'' means an Advanced Manufacturing
Innovation Hub established under subsection (b).
(3) Qualifying entity.--The term ``qualifying entity''
means--
(A) an institution of higher education in
partnership with industry;
(B) an appropriate Federal or State entity,
including Federally Funded Research and Development
Centers of the Department;
(C) a nongovernmental organization with expertise
in advanced manufacturing research, development,
demonstration, or commercial application activities; or
(D) any other relevant entity that the Secretary
considers appropriate.
(b) Authorization of Program.--
(1) In general.--The Secretary shall carry out a program to
enhance the manufacturing competitiveness of the United States
by making awards to consortia for establishing and operating
Advanced Manufacturing Innovation Hubs to conduct and support
multidisciplinary, collaborative research, development,
demonstration, and commercial application of advance
manufacturing technologies.
(2) Centralized location.--To the maximum extent
practicable, each Hub provided an award under this section
shall be located at 1 centralized location.
(3) Technology development focus.--The Secretary shall
designate for each Hub a unique advanced manufacturing
technology focus, process, or technology.
(4) Coordination.--The Secretary shall ensure the
coordination of, and avoid unnecessary duplication of, the
activities of Hubs with the activities of other research
entities of the Department (including the National Laboratories
and the Advanced Research Projects Agency--Energy) and
industry.
(c) Consortia.--
(1) Eligibility.--To be eligible to receive an award under
this section for the establishment and operation of a Hub, a
consortium shall--
(A) be composed of not fewer than 2 qualifying
entities; and
(B) operate subject to an agreement entered into by
the members of the consortium that documents--
(i) the proposed partnership agreement,
including the governance and management
structure of the Hub;
(ii) measures to enable the cost-effective
implementation of the program under this
section;
(iii) a proposed budget for the Hub,
including a description of financial
contributions from non-Federal sources;
(iv) an accounting structure for the Hub
that enables the Secretary to ensure that the
consortium has complied with the requirements
of this section; and
(v) a plan to coordinate workforce training
within Hub locations.
(2) Application.--
(A) In general.--A consortium seeking to establish
and operate a Hub under this section, acting through a
prime applicant, shall submit to the Secretary an
application that addresses the elements of the
consortium agreement required under paragraph (1)(B).
(B) Multiple locations.--If the consortium members
are not located at 1 centralized location, an
application submitted under subparagraph (A) shall
include a communications plan that ensures close
coordination and integration of the activities of the
Hub.
(d) Selection and Schedule.--
(1) In general.--The Secretary shall select consortia for
awards for the establishment and operation of Hubs through a
competitive selection process.
(2) Considerations.--In selecting consortia under this
section, the Secretary shall consider--
(A) the information a consortium is required to
document under subsection (c)(1)(B);
(B) regional diversity; and
(C) any existing facilities that a consortium would
provide for Hub activities.
(3) Term.--
(A) In general.--Awards made to a Hub under this
section shall be for a period of not more than 5 years.
(B) Renewal.--At the end of the 5-year period of an
award under this section, the Secretary may renew the
award, subject to a rigorous merit review.
(e) Hub Operations.--
(1) In general.--Each Hub shall conduct or provide for
multidisciplinary, collaborative research, development,
demonstration, and, as appropriate, commercial application of
advanced manufacturing technologies within the technology
development focus for the Hub designated under subsection
(b)(3).
(2) Requirements.--Each Hub shall--
(A) encourage collaboration and communication among
the member qualifying entities of the consortium and
awardees by conducting activities, to the maximum
extent practicable, at 1 centralized location;
(B) develop and publish on the website of the
Department proposed plans and programs;
(C) submit an annual report to the Secretary that
summarizes, during the period covered by the report,
the activities of the Hub, including--
(i) a detailed description of
organizational expenditures by the Hub; and
(ii) a description of each project
undertaken by the Hub; and
(D) monitor project implementation and
coordination.
(3) Conflicts of interest.--
(A) Procedures.--A Hub shall maintain conflict of
interest procedures, consistent with the procedures of
the Department, to ensure that employees and consortia
designees for Hub activities that are in decisionmaking
capacities--
(i) disclose all material conflicts of
interest; and
(ii) avoid conflicts of interest.
(B) Disqualification and revocation.--The Secretary
may disqualify an application or revoke funds
distributed to a Hub if the Secretary discovers a
failure to comply with conflict of interest procedures
established under subparagraph (A).
(4) Prohibition of construction.--
(A) In general.--No funds provided under this
section may be used for the construction of new
buildings or facilities for a Hub.
(B) Cost-sharing agreement.--Construction of new
buildings or facilities for a Hub shall not be
considered as part of the non-Federal share of a cost-
sharing agreement of the Hub.
(C) Test bed and renovation exception.--Nothing in
this paragraph prohibits the use of funds provided
under this section, or non-Federal cost share funds,
for research or for the construction of a test bed or
renovations to existing buildings or facilities for the
purposes of research, if the Secretary determines that
the test bed or renovations are limited to a scope and
scale necessary for the research to be conducted.
(f) Termination.--The Secretary may terminate an underperforming
Hub for cause during the award period.
(g) Loan Program.--The consortium from each Hub, in consultation
with the Secretary, may identify best in class technologies that would
be eligible for technical assistance, including assistance from loan
programs of the Department, the Community Development Financial
Institution Program, Small Business Administration loan programs, Small
Business Innovation Research and Small Business Technology Transfer
programs, and rural energy loan programs of the Department of
Agriculture.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $300,000,000.
SEC. 2026. ADVANCED MATERIALS PRIZE COMPETITION PILOT PROGRAM.
(a) In General.--The Secretary shall establish a prize competition
under which eligible entities compete to develop and verifiably
demonstrate advanced materials technology that reduces energy costs or
reduces carbon dioxide emissions by at least 20 percent.
(b) Competition Board.--The Secretary shall establish a Competition
Board to administer the prize competition, to be composed of members
from the Department and industry.
(c) Eligible Entities.--To be eligible for the competition, an
entity shall be--
(1) a non-public entity; or
(2) a public-private partnership in which the private
entity is greater than 50 percent of the partnership.
(d) Awards.--As part of the prize competition established under
this section, the Competition Board shall award to eligible entities
not more than 5 prizes of not more than $2,000,000 each.
(e) Duration.--The duration for the prize competition established
under this section shall be not less than 2 years or more than 5 years.
(f) Selection.--In selecting a winner for a prize awarded under the
prize competition, the Competition Board shall evaluate the technology
developed by the eligible entity based on the following criteria:
(1) The amount by which the technology would increase
energy savings or decrease carbon dioxide emissions.
(2) The ability of the technology to be deployed in
commercial application in a variety of industries or supply
chains.
(3) The potential for private sector investment in the
technology.
(4) The potential of the technology to transform an
existing industry or establish a new industry.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000.
SEC. 2027. PILOT PROGRAM WITH ORIGINAL EQUIPMENT MANUFACTURERS AND
PUBLIC UTILITIES.
The Office, in collaboration with the Industrial Assessment Centers
at the Department, the National Institute of Standards and Technology,
the Manufacturing Extension Partnership, original equipment
manufacturers, and public utilities, shall develop a pilot program to
work with small- and medium-manufacturers in supply chains of original
equipment manufacturers to provide--
(1) an assessment of manufacturing efficiency; and
(2) best practices and technical assistance for
implementing energy savings and efficiency in the manufacturing
process.
Subtitle D--Building Better Trucks
SEC. 2031. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE
PROGRAM.
Section 136 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17013) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (A)
through (C) as clauses (i) through (iii),
respectively, and indenting appropriately;
(ii) by striking ``(1) Advanced technology
vehicle.--'' and all that follows through
``meets--'' and inserting the following:
``(1) Advanced technology vehicle.--The term `advanced
technology vehicle' means--
``(A) an ultra efficient vehicle;
``(B) a light duty vehicle that meets--'';
(iii) in subparagraph (B)(iii) (as so
redesignated), by striking the period at the
end and inserting ``; or''; and
(iv) by adding at the end the following:
``(C) a medium-duty or heavy-duty vehicle that--
``(i)(I) is subject to regulations
established by the Secretary of Transportation
under parts 523, 534, and 535 of title 49, Code
of Federal Regulations (or successor
regulations); or
``(II) is included in a vehicle type or
class that offers opportunities to
substantially reduce consumption of
conventional motor fuel, as determined by the
Secretary by rule; and
``(ii) reduces consumption of conventional
motor fuel by 10 percent or greater as compared
to model year 2010 medium- and heavy-duty
vehicles of a similar vehicle type or class,
unless the Secretary determines by rule that--
``(I) the percentage is not
achievable for a specific vehicle type
or class; and
``(II) an alternative percentage
for that vehicle type or class will
result in substantial reductions in
motor fuel consumption within the
United States.''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Qualifying components.--The term `qualifying
components' means components, systems, or groups of subsystems
that the Secretary determines--
``(A) to be designed to improve fuel economy or
otherwise substantially reduce consumption of
conventional motor fuel; or
``(B) to contribute measurably to the overall
improved fuel use of an advanced technology vehicle.'';
(2) in subsection (b), in the matter preceding paragraph
(1), by inserting ``or other vehicle'' after ``ultra efficient
vehicle'';
(3) by striking subsection (f) and inserting the following:
``(f) Fees.--
``(1) In general.--The Secretary shall charge a closing fee
of 50 basis points of the loan to cover applicable
administrative expenses.
``(2) Use of fees.--Fees collected under paragraph (1)
shall--
``(A) be deposited by the Secretary into the
general fund of the Treasury; and
``(B) remain available until expended, subject to
such other conditions as are contained in annual
appropriations Acts.''; and
(4) in subsection (h)(1)(B), by striking ``automobiles, or
components of automobiles'' and inserting ``automobiles or
other vehicles, or components of automobiles or other
vehicles''.
Subtitle E--Vehicle Innovation
SEC. 2041. FINDINGS.
Congress finds the following:
(1) According to the Energy Information Administration, the
transportation sector accounts for approximately 28 percent of
the United States primary energy demand and greenhouse gas
emissions, and 21 percent of global oil demand.
(2) The United States transportation sector is over 90-
percent dependent on petroleum.
(3) United States heavy truck fuel consumption will
increase 27 percent by 2030.
(4) The domestic automotive and commercial vehicle
manufacturing sectors have increasingly limited resources for
research, development, and engineering of advanced
technologies.
(5) Vehicle, engine, and component manufacturers are
playing a more important role in vehicle technology
development, and should be better integrated into Federal
research efforts.
(6) Priorities for the vehicle technologies research of the
Department have shifted drastically in recent years among
diesel hybrids, hydrogen fuel cell vehicles, and plug-in
electric hybrids, with little continuity among them.
(7) The integration of vehicle, communication, and
infrastructure technologies has great potential for efficiency
gains through better management of the total transportation
system.
(8) The Federal Government should balance its role in
researching longer-term exploratory concepts and developing
nearer-term transformational technologies for vehicles.
SEC. 2042. OBJECTIVES.
The objectives of this subtitle are--
(1) to develop United States technologies and practices
that--
(A) improve the fuel efficiency and emissions of
all vehicles produced in the United States; and
(B) reduce vehicle reliance on petroleum-based
fuels;
(2) to support domestic research, development, engineering,
demonstration, and commercial application and manufacturing of
advanced vehicles, engines, and components;
(3) to enable vehicles to move larger volumes of goods and
more passengers with less energy and emissions;
(4) to develop cost-effective advanced technologies for
wide-scale utilization throughout the passenger, commercial,
government, and transit vehicle sectors;
(5) to allow for greater consumer choice of vehicle
technologies and fuels;
(6) shorten technology development and integration cycles
in the vehicle industry;
(7) to ensure a proper balance and diversity of Federal
investment in vehicle technologies; and
(8) to strengthen partnerships between Federal and State
governmental agencies and the private and academic sectors.
SEC. 2043. VEHICLE RESEARCH AND DEVELOPMENT PROGRAM.
(a) Program.--
(1) Activities.--The Secretary shall conduct a program of
basic and applied research, development, engineering,
demonstration, and commercial application activities on
materials, technologies, and processes with the potential to
substantially reduce or eliminate petroleum use and the
emissions of passenger and commercial vehicles in the United
States, including activities in the areas of--
(A) hybridization or full electrification of
vehicle systems;
(B) batteries and other energy storage devices;
(C) power electronics;
(D) vehicle, component, and subsystem manufacturing
technologies and processes;
(E) engine efficiency and combustion optimization;
(F) waste heat recovery;
(G) transmission and drivetrains;
(H) hydrogen vehicle technologies, including fuel
cells and internal combustion engines, and hydrogen
infrastructure, including hydrogen energy storage to
enable renewables and provide hydrogen for fuel and
power;
(I) natural gas vehicle technologies;
(J) aerodynamics, rolling resistance (including
tires and wheel assemblies), and accessory power loads
of vehicles and associated equipment;
(K) vehicle weight reduction, including
lightweighting materials and the development of
manufacturing processes to fabricate, assemble, and use
dissimilar materials;
(L) friction and wear reduction;
(M) engine and component durability;
(N) innovative propulsion systems;
(O) advanced boosting systems;
(P) hydraulic hybrid technologies;
(Q) engine compatibility with and optimization for
a variety of transportation fuels including natural gas
and other liquid and gaseous fuels;
(R) predictive engineering, modeling, and
simulation of vehicle and transportation systems;
(S) refueling and charging infrastructure for
alternative fueled and electric or plug-in electric
hybrid vehicles, including the unique challenges facing
rural areas;
(T) gaseous fuels storage systems and system
integration and optimization;
(U) sensing, communications, and actuation
technologies for vehicle, electrical grid, and
infrastructure;
(V) efficient use, substitution, and recycling of
potentially critical materials in vehicles, including
rare earth elements and precious metals, at risk of
supply disruption;
(W) aftertreatment technologies;
(X) thermal management of battery systems;
(Y) retrofitting advanced vehicle technologies to
existing vehicles;
(Z) development of common standards,
specifications, and architectures for both
transportation and stationary battery applications;
(AA) advanced internal combustion engines;
(BB) mild hybrid;
(CC) engine down speeding; and
(DD) other research areas as determined by the
Secretary.
(2) Transformational technology.--The Secretary shall
ensure that the Department continues to support research,
development, engineering, demonstration, and commercial
application activities and maintains competency in mid- to
long-term transformational vehicle technologies with potential
to achieve deep reductions in petroleum use and emissions,
including activities in the areas of--
(A) hydrogen vehicle technologies, including fuel
cells, hydrogen storage, infrastructure, and activities
in hydrogen technology validation and safety codes and
standards;
(B) multiple battery chemistries and novel energy
storage devices, including nonchemical batteries and
electromechanical storage technologies such as
hydraulics, flywheels, and compressed air storage;
(C) communication and connectivity among vehicles,
infrastructure, and the electrical grid; and
(D) other innovative technologies research and
development, as determined by the Secretary.
(3) Industry participation.--
(A) In general.--To the maximum extent practicable,
activities under this section shall be carried out in
partnership or collaboration with automotive
manufacturers, heavy commercial, vocational, and
transit vehicle manufacturers, qualified plug-in
electric vehicle manufacturers, compressed natural gas
vehicle manufacturers, vehicle and engine equipment and
component manufacturers, manufacturing equipment
manufacturers, advanced vehicle service providers, fuel
producers and energy suppliers, electric utilities,
institutions of higher education, the National
Laboratories (as that term is defined in section 2 of
the Energy Policy Act of 2005 (42 U.S.C. 15801)), and
independent research laboratories.
(B) Requirements.--In carrying out this section,
the Secretary shall--
(i)(I) determine whether a wide range of
companies that manufacture or assemble vehicles
or components in the United States are
represented in ongoing public private
partnership activities, including firms that
have not traditionally participated in
federally sponsored research and development
activities; and
(II) if possible, partner with firms
described in subclause (II) that conduct
significant and relevant research and
development activities in the United States;
(ii) leverage the capabilities and
resources of, and formalize partnerships with,
industry-led stakeholder organizations,
nonprofit organizations, industry consortia,
and trade associations with expertise in the
research and development of, and education and
outreach activities in, advanced automotive and
commercial vehicle technologies;
(iii) develop more effective processes for
transferring research findings and technologies
to industry;
(iv) give consideration to conversion of
existing or former vehicle technology
development or manufacturing facilities for the
purposes of this section;
(v) support public-private partnerships
dedicated to overcoming barriers in commercial
application of transformational vehicle
technologies that use the industry-led
technology development facilities of entities
with demonstrated expertise in successfully
designing and engineering pre-commercial
generations of transformational vehicle
technology; and
(vi) promote efforts to ensure that
technology research, development, engineering,
and commercial application activities funded
under this section are carried out in the
United States.
(4) Interagency and intraagency coordination.--To the
maximum extent practicable, the Secretary shall coordinate
research, development, demonstration, and commercial
application activities among--
(A) relevant programs within the Department,
including--
(i) the Office of Energy Efficiency and
Renewable Energy;
(ii) the Office of Science;
(iii) the Office of Electricity Delivery
and Energy Reliability;
(iv) the Office of Fossil Energy;
(v) the Advanced Research Projects Agency--
Energy; and
(vi) other offices as determined by the
Secretary; and
(B) relevant technology research and development
programs within other Federal agencies, as determined
by the Secretary.
(5) Coordination and nonduplication.--In coordinating
activities carried out under this section, the Secretary shall
ensure, to the maximum extent practicable, that the activities
do not duplicate those of other programs within the Department
or other relevant research agencies.
(6) Federal demonstration of technologies.--The Secretary
shall make information available to procurement programs of
Federal agencies regarding the potential to demonstrate
technologies resulting from activities funded through programs
under this section.
(7) Intergovernmental coordination.--The Secretary shall
seek opportunities to leverage resources and support
initiatives of State and local governments in developing and
promoting advanced vehicle technologies, manufacturing, and
infrastructure.
(8) Criteria.--In awarding grants under this program, the
Secretary shall give priority to those technologies (either
individually or as part of a system) that--
(A) provide the greatest aggregate fuel savings
based on the reasonable projected sales volumes of the
technology; and
(B) provide the greatest increase in employment in
the United States.
(b) Sensing and Communications Technologies.--The Secretary, in
coordination with the relevant research programs of other Federal
agencies, shall conduct research, development, engineering,
demonstration, and deployment activities on connectivity of vehicle
roadway, vulnerable road users, traffic control systems, and
transportation data systems, including on sensing, data, computation,
communication, cybersecurity, and actuation technologies that allow for
improved safety, reduced energy and fuel use, optimized traffic flow,
and vehicle electrification, including technologies for--
(1) onboard vehicle, engine, transmission and component
sensing, actuation, and calibration;
(2) vehicle-to-vehicle sensing and communication;
(3) vehicle-to-infrastructure sensing and communication;
(4) vehicle-to-pedestrian and vehicle-to-bicyclist sensing
and communication; and
(5) vehicle integration with the electrical grid.
(c) Manufacturing.--The Secretary shall carry out a research,
development, engineering, demonstration, and commercial application
program of advanced vehicle manufacturing technologies and practices,
including innovative processes--
(1) to increase the production rate and decrease the cost
of advanced battery and fuel cell manufacturing;
(2) to vary the capability of individual manufacturing
facilities to accommodate different battery chemistries and
configurations;
(3) to reduce waste streams, emissions, and energy
intensity of vehicle, engine, advanced battery and component
manufacturing processes;
(4) to recycle and remanufacture used batteries and other
vehicle components for reuse in vehicles or stationary
applications;
(5) to develop manufacturing processes to effectively
fabricate, assemble, and produce cost-effective lightweight
materials such as advanced aluminum and other metal alloys,
polymeric composites, and carbon fiber for use in vehicles;
(6) to produce lightweight high pressure storage systems
for gaseous fuels;
(7) to design and manufacture purpose-built hydrogen fuel
cell vehicles and components;
(8) to improve the calendar life and cycle life of advanced
batteries; and
(9) to produce permanent magnets for advanced vehicles.
(d) User Testing Facilities.--Activities under this section may
include construction, expansion, or modification of new and existing
vehicle, engine, and component research and testing facilities for--
(1) testing or simulating interoperability of a variety of
vehicle components and systems, including the technologies
described in subsection (b);
(2) subjecting whole or partial vehicle platforms to fully
representative duty cycles and operating conditions;
(3) developing and demonstrating a range of chemistries and
configurations for advanced vehicle battery manufacturing;
(4) developing and demonstrating test cycles for new and
alternative fuels, and other advanced vehicle technologies;
(5) developing and demonstrating methods to charge electric
vehicles and connect them to the electric grid; and
(6) developing, testing, and demonstrating hydrogen and
natural gas refueling station technologies.
(e) Reporting.--
(1) Technologies developed.--Not later than 18 months after
the date of enactment of this Act and annually thereafter
through 2020, the Secretary shall submit to Congress a report
regarding the technologies developed as a result of the
activities authorized by this section, with a particular
emphasis on whether the technologies were successfully adopted
for commercial applications, and if so, whether products
relying on those technologies are manufactured in the United
States.
(2) Additional matters.--At the end of each fiscal year
through 2020 the Secretary shall submit to the relevant
Congressional committees of jurisdiction an annual report
describing activities undertaken in the previous year under
this section, active industry participants, efforts to recruit
new participants committed to design, engineering, and
manufacturing of advanced vehicle technologies in the United
States, progress of the program in meeting goals and timelines,
and a strategic plan for funding of activities across agencies.
SEC. 2044. MEDIUM- AND HEAVY-DUTY COMMERCIAL AND TRANSIT VEHICLES
PROGRAM.
(a) Program.--
(1) In general.--The Secretary, in partnership with
relevant research and development programs in other Federal
agencies, and a range of appropriate industry stakeholders,
shall carry out a program of cooperative research, development,
demonstration, and commercial application activities on
advanced technologies for medium- to heavy-duty commercial,
vocational, recreational, and transit vehicles, including
activities in the areas of--
(A) engine efficiency and combustion research;
(B) onboard storage technologies for compressed and
liquefied natural gas;
(C) development and integration of engine
technologies designed for natural gas operation of a
variety of vehicle platforms;
(D) waste heat recovery and conversion;
(E) improved aerodynamics and tire rolling
resistance;
(F) energy and space-efficient emissions control
systems;
(G) mild hybrid, heavy hybrid, hybrid hydraulic,
plug-in hybrid, and electric platforms, and energy
storage technologies;
(H) drivetrain optimization;
(I) friction and wear reduction;
(J) engine idle and parasitic energy loss
reduction;
(K) electrification of accessory loads;
(L) onboard sensing and communications
technologies;
(M) advanced lightweighting materials and vehicle
designs;
(N) increasing load capacity per vehicle;
(O) thermal management of battery systems;
(P) recharging infrastructure;
(Q) compressed natural gas infrastructure;
(R) advanced internal combustion engines;
(S) complete vehicle and power pack modeling,
simulation, and testing;
(T) hydrogen vehicle technologies, including fuel
cells and internal combustion engines, and hydrogen
infrastructure, including hydrogen energy storage to
enable renewables and provide hydrogen for fuel and
power;
(U) retrofitting advanced technologies onto
existing truck fleets;
(V) advanced boosting systems;
(W) engine down speeding; and
(X) integration of these and other advanced systems
onto a single truck and trailer platform.
(2) Reporting.--At the end of each fiscal year through
fiscal year 2020, the Secretary shall submit to Congress an
annual report describing activities undertaken in the previous
year under this section, active industry participants, efforts
to recruit new participants, progress of the program in meeting
goals and timelines, and a strategic plan for funding of
activities across agencies.
(b) Class 8 Truck and Trailer Systems Demonstration.--
(1) In general.--The Secretary shall conduct a competitive
grant program to demonstrate the integration of multiple
advanced technologies on Class 8 truck and trailer platforms,
including a combination of technologies listed in subsection
(a)(1).
(2) Applicant teams.--Applicant teams may be comprised of
truck and trailer manufacturers, engine and component
manufacturers, fleet customers, university researchers, and
other applicants as appropriate for the development and
demonstration of integrated Class 8 truck and trailer systems.
(c) Technology Testing and Metrics.--The Secretary, in coordination
with the partners of the interagency research program described in
subsection (a)(1)--
(1) shall develop standard testing procedures and
technologies for evaluating the performance of advanced heavy
vehicle technologies under a range of representative duty
cycles and operating conditions, including for heavy hybrid
propulsion systems;
(2) shall evaluate heavy vehicle performance using work
performance-based metrics other than those based on miles per
gallon, including those based on units of volume and weight
transported for freight applications, and appropriate metrics
based on the work performed by nonroad systems; and
(3) may construct heavy duty truck and bus testing
facilities.
(d) Nonroad Systems Pilot Program.--The Secretary shall undertake a
pilot program of research, development, demonstration, and commercial
applications of technologies to improve total machine or system
efficiency for nonroad mobile equipment including agricultural,
construction, air, and sea port equipment, and shall seek opportunities
to transfer relevant research findings and technologies between the
nonroad and on-highway equipment and vehicle sectors.
SEC. 2045. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary for
research, development, engineering, demonstration, and commercial
application of vehicles and related technologies in the United States,
including activities authorized under this subtitle--
(1) for fiscal year 2016, $313,567,000;
(2) for fiscal year 2017, $326,109,000;
(3) for fiscal year 2018, $339,154,000;
(4) for fiscal year 2019, $352,720,000; and
(5) for fiscal year 2020, $366,829,000.
Subtitle F--Carbon Fiber Recycling
SEC. 2051. RECYCLED CARBON FIBER STUDY.
(a) Study.--The Secretary shall conduct a study on--
(1) the technology of recycled carbon fiber and production
waste carbon fiber; and
(2) the potential lifecycle energy savings and economic
impact of recycled carbon fiber.
(b) Factors for Consideration.--In conducting the study under
subsection (a), the Secretary shall take into consideration--
(1) the quantity of recycled carbon fiber or production
waste carbon fiber that would make the use of recycled carbon
fiber or production waste carbon fiber economically viable;
(2) any existing or potential barriers to recycling carbon
fiber or using recycled carbon fiber;
(3) any financial incentives that may be necessary for the
development of recycled carbon fiber or production waste carbon
fiber;
(4) the potential lifecycle savings in energy from
producing recycled carbon fiber, as compared to producing new
carbon fiber;
(5) the best and highest use for recycled carbon fiber;
(6) the potential reduction in carbon dioxide emissions
from producing recycled carbon fiber, as compared to producing
new carbon fiber;
(7) any economic benefits gained from using recycled carbon
fiber or production waste carbon fiber;
(8) workforce training and skills needed to address labor
demands in the development of recycled carbon fiber or
production waste carbon fiber; and
(9) how the Department can leverage existing efforts in the
industry on the use of production waste carbon fiber.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report describing
the results of the study conducted under subsection (a).
SEC. 2052. CARBON FIBER RECYCLING DEMONSTRATION PROJECT.
The Secretary shall consult with the aviation and automotive
industries and existing programs of the Advanced Manufacturing Office
of the Department to develop a carbon fiber recycling demonstration
project.
SEC. 2053. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle
$10,000,000, to remain available until expended.
Subtitle G--Job Creation Through Energy Efficient Manufacturing
SEC. 2061. PURPOSE.
The purpose of this subtitle is to encourage widespread deployment
of energy efficiency and onsite renewable energy technologies in
manufacturing and industrial facilities throughout the United States
through the establishment of a Financing Energy Efficient Manufacturing
Program that would--
(1) encourage the widespread availability of financial
products and programs with attractive rates and terms that
significantly reduce or eliminate upfront expenses to allow
manufacturing and industrial businesses to invest in energy
efficiency measures, onsite clean and renewable energy systems,
smart grid systems, and alternative vehicle fleets by providing
credit support, credit enhancement, secondary markets, and
other support to originators of the financial products and
sponsors of the financing programs; and
(2) help building owners to invest in measures and systems
that reduce energy costs, in many cases creating a net cost
savings that can be realized in the short-term, and may also
allow manufacturing and industrial business owners to defer
capital expenditures, save money to hire new workers, and
increase the value, comfort, and sustainability of the property
of the owners.
SEC. 2062. DEFINITIONS.
In this subtitle:
(1) Covered program.--The term ``covered program'' means a
program to finance energy efficiency retrofit, onsite clean and
renewable energy, smart grid, and alternative vehicle fleet
projects for industrial businesses.
(2) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 2063. FINANCING ENERGY EFFICIENT MANUFACTURING PROGRAM.
(a) Establishment.--The Secretary shall establish a program, to be
known as the ``Financing Energy Efficient Manufacturing Program'',
under which the Secretary shall provide grants to States to establish
or expand covered programs.
(b) Applications.--
(1) In general.--A State may apply to the Secretary for a
grant under subsection (a) to establish or expand covered
programs.
(2) Evaluation.--The Secretary shall evaluate applications
submitted by States under paragraph (1) on the basis of--
(A) the likelihood that the covered program would--
(i) be established or expanded; and
(ii) increase the total investment and
energy savings of retrofit projects to be
supported;
(B) in the case of industrial business efficiency
financing initiatives conducted under subsection (c),
evidence of multi-State cooperation and coordination
with lenders, financiers, and owners; and
(C) other factors that would advance the purposes
of this subtitle, as determined by the Secretary.
(c) Multi-State Facilitation.--The Secretary shall consult with
States and relevant stakeholders with applicable expertise to establish
a process to identify financing opportunities for manufacturing and
industrial business with asset portfolios across multiple States.
(d) Administration.--A State receiving a grant under subsection (a)
shall give a higher priority to covered programs that--
(1) leverage private and non-Federal sources of funding;
and
(2) aim explicitly to expand the use of energy efficiency
project financing using private sources of funding.
(e) Davis-Bacon Compliance.--
(1) In general.--All laborers and mechanics employed on
projects funded directly by or assisted in whole or in part by
this subtitle shall be paid wages at rates not less than those
prevailing on projects of a character similar in the locality
as determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of part A of subtitle II of title
40, United States Code (commonly referred to as the ``Davis-
Bacon Act'').
(2) Authority.--With respect to the labor standards
specified in this subsection, the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section
3145 of title 40, United States Code.
(f) Reports.--
(1) In general.--Not later than 2 years after the date of
receipt of a grant under this subtitle, a State shall submit to
the Secretary, the Committee on Energy and Natural Resources of
the Senate, and the Committee on Energy and Commerce of the
House of Representatives a report that describes the
performance of covered programs carried out using the grant
funds.
(2) Data.--
(A) In general.--A State receiving a grant under
this subtitle, in cooperation with the Secretary,
shall--
(i) collect and share data resulting from
covered programs carried out under this
subtitle; and
(ii) include in the report submitted under
paragraph (1) any data collected under clause
(i).
(B) Department databases.--The Secretary shall
incorporate data described in subparagraph (A) into
appropriate databases of the Department, with
provisions for the protection of confidential business
data.
SEC. 2064. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry
out this subtitle $250,000,000, to remain available until expended.
(b) State Energy Offices.--Funds provided to a State under this
subtitle shall be provided to the office within the State that is
responsible for developing the State energy plan for the State under
part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq).
Subtitle H--21\st\ Century Energy Workforce
SEC. 2101. FINDINGS.
Congress finds that--
(1) the energy sector is the third-largest industry in the
United States;
(2) 1,500,000 new skilled workers will be needed in the
energy sector over the next 15 years; and
(3) a skilled workforce is a critical component of ensuring
the growth of the energy sector in the United States.
SEC. 2102. DEFINITIONS.
In this subtitle:
(1) Board.--The term ``Board'' means the National Center of
Excellence for the 21\st\ Century Workforce Advisory Board
established under section 2103(a).
(2) Community college.--The term ``community college''
means a junior or community college (as defined in section
312(f) of the Higher Education Act of 1965 (20 U.S.C.
1058(f))).
(3) Program.--The term ``program'' means the pilot program
established under section 2104(a).
(4) Veterans service organization.--The term ``veterans
service organization'' means an organization recognized by the
Secretary of Veterans Affairs for the representation of
veterans under section 5902 of title 38, United States Code.
SEC. 2103. NATIONAL CENTER OF EXCELLENCE FOR THE 21\ST\ CENTURY
WORKFORCE.
(a) In General.--The Secretary shall establish a nationwide
advisory board, to be known as the ``National Center of Excellence for
the 21\st\ Century Workforce Advisory Board'', to foster strategic
vision, guidance, and networks for the energy industry.
(b) Representatives.--The members of the Board shall consist of
energy sector stakeholders, including--
(1) representatives of relevant industries;
(2) experts in labor, economics, and workforce development;
(3) representatives of States and units of local
government;
(4) representatives of elementary and secondary education
and postsecondary education; and
(5) representatives of labor organizations.
(c) Purposes.--The purposes of the Board are--
(1) to support and develop training and science education
programs that--
(A) meet the industry and labor needs of the energy
and advanced manufacturing sectors; and
(B) provide opportunities for students to become
qualified for placement in traditional and clean energy
sector jobs;
(2) to align apprenticeship programs and industry
certifications to further develop succession planning in the
energy sector;
(3) to integrate educational standards to develop
foundational skills for elementary and secondary education and
postsecondary education to create a pipeline between education
and career; and
(4) to support the replication of existing model energy
curricula, particularly in new and emerging technologies, that
lead to industry-wide credentials.
SEC. 2104. ENERGY WORKFORCE PILOT GRANT PROGRAM.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary, in consultation with the Secretary of Labor
and the Secretary of Education, shall establish a pilot program to
award grants on a competitive basis to eligible entities for job
training programs that lead to an industry-recognized credential.
(b) Eligibility.--To be eligible to receive a grant under this
section, an entity shall be a public or nonprofit organization, or a
consortium of such organizations, that--
(1) includes an advisory board of proportional
participation, as determined by the Secretary, of relevant
organizations, including--
(A) relevant energy industry organizations,
including public and private employers;
(B) labor organizations; and
(C) elementary and secondary education and
postsecondary education organizations;
(2) demonstrates experience in implementing and operating
job training and education programs;
(3) demonstrates the ability to recruit and support
individuals who plan to work in the energy industry in the
successful completion of relevant job training and education
programs; and
(4) provides students who complete the job training and
education program with an industry-recognized credential.
(c) Applications.--Eligible entities desiring a grant under this
section shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require.
(d) Priority.--In selecting eligible entities to receive grants
under this section, the Secretary shall prioritize applicants that--
(1) house the job training and education programs in--
(A) a community college or institution of higher
education that includes basic science and math
education in the curriculum of the community college,
institution of higher education; or
(B) an apprenticeship program registered with the
Department of Labor;
(2) work with the Secretary of Defense or veterans service
organizations to transition members of the Armed Forces and
veterans to careers in the energy sector;
(3) apply as a State or regional consortia to leverage best
practices already available in the State or region in which the
community college or institution of higher education is
located;
(4) have a State-supported entity included in the
application;
(5) include an apprenticeship program registered with the
Department of Labor as part of the job training and education
program;
(6) develop a mentorship program for energy professionals
and elementary and secondary education students;
(7) provide support services and career coaching;
(8) provide introductory energy workforce development and
advanced manufacturing training; or
(9) work with an Indian tribe (as defined in section 4 of
the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b)).
(e) Additional Consideration.--In making grants under this section,
the Secretary shall consider regional diversity.
(f) Limitation on Applications.--An eligible entity may not submit,
either individually or as part of a joint application, more than 1
application for a grant under this section during any 1 fiscal year.
(g) Limitations on Amount of Grant.--The amount of a grant for any
1 year shall not exceed $1,000,000.
(h) Cost Sharing.--
(1) Federal share.--The Federal share of the cost of a job
training and education program carried out using a grant under
this section shall be not greater than 65 percent.
(2) Non-federal share.--
(A) In general.--The non-Federal share of the cost
of a job training and education program carried out
using a grant under this section shall consist of not
less than 50 percent cash.
(B) Limitation.--Not greater than 50 percent of the
non-Federal contribution of the total cost of a job
training and education program carried out using a
grant under this section shall be in the form of in-
kind contributions of goods or services fairly valued.
(i) Reduction of Duplication.--Prior to submitting an application
for a grant under this section, each applicant shall consult with the
applicable agencies of the Federal Government and coordinate the
proposed activities of the applicant with existing State and local
programs.
(j) Technical Assistance.--The Secretary shall provide technical
assistance and capacity building to national and State energy
partnerships, including the entities described in subsection (b)(1), to
leverage the existing job training and education programs of the
Department.
(k) Report.--The Secretary shall submit to Congress and make
publicly available on the website of the Department an annual report on
the program established under this section, including a description
of--
(1) the entities receiving grants;
(2) the activities carried out using the grants;
(3) best practices used to leverage the investment of the
Federal Government;
(4) the rate of employment for participants after
completing a job training and education program carried out
using a grant; and
(5) an assessment of the results achieved by the program.
(l) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2016 through 2019.
Subtitle I--Solar Installations
SEC. 2111. LOAN AND GRANT PROGRAM FOR SOLAR INSTALLATIONS IN LOW-INCOME
AND UNDERSERVED AREAS.
(a) Definitions.--In this section:
(1) Administrative expenses.--The term ``administrative
expenses'' has such meaning as may be established by the
Secretary.
(2) Community solar facility.--The term ``community solar
facility'' means a community-based distributed photovoltaic
solar electricity generating facility that, as determined by
the Secretary--
(A) is owned by a subscriber organization;
(B) has a nameplate rating of 2 megawatts or less;
(C) is located in or near a community of
subscribers to whom the beneficial use of the
electricity generated by the facility belongs; and
(D) reserves not less than 25 percent of the
quantity of electricity generated by the facility for
low-income households that are subscribers to the
facility.
(3) Grant-eligible household.--The term ``grant-eligible
household'' means a household the members of which--
(A) earn an income equal to 80 percent or less of
the applicable area median income, as defined for the
applicable year by the Secretary of Housing and Urban
Development; and
(B) reside in an owner-occupied home.
(4) Indian tribe.--The term ``Indian tribe'' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation (as defined in, or established pursuant to,
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.)), that is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
(5) Loan-eligible entity.--The term ``loan-eligible
entity'' means--
(A) a nonprofit entity;
(B) a unit of State, territorial, or local
government;
(C) an Indian tribe;
(D) a rural community (as defined in section 343(a)
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)); and
(E) any other national or regional entity that--
(i) deploys a safe, high-quality
photovoltaic solar electricity generating
facility for consumers under a model that
maximizes energy savings to those consumers;
and
(ii) has experience, as determined by the
Secretary, installing solar systems using a job
training or community volunteer-based
installation model.
(6) Low-income household.--The term ``low-income
household'' means a household with an income equal to 80
percent or less of the applicable area median income, as
defined for the applicable year by the Secretary of Housing and
Urban Development.
(7) Multi-family affordable housing.--The term ``multi-
family affordable housing'' means any federally subsidized
affordable housing complex in which at least 50 percent of the
units are reserved for low-income households.
(8) Photovoltaic solar electricity generating facility.--
The term ``photovoltaic solar electricity generating facility''
means--
(A) a generator that creates electricity from light
photons; and
(B) the accompanying hardware enabling that
electricity to flow--
(i) onto the electric grid; or
(ii) into an energy storage device.
(9) Subscriber.--The term ``subscriber'' means an
electricity consumer who--
(A) owns a subscription, or an equivalent unit or
share of the capacity or generation, of a community
solar facility;
(B) has identified 1 or more physical locations--
(i) to which the subscription will be
attributed;
(ii) within the same electric utility
service territory, or within the same
geographical area, as the community solar
facility, in accordance with applicable State
and local law; and
(iii) that may change from time to time,
subject to the condition that the physical
location shall be within the geographical
limits allowed for a subscriber of the
applicable community solar facility; and
(C) confirms the status of the consumer as a grant-
eligible household for each applicable fiscal year.
(10) Subscription.--The term ``subscription'' means a share
in the capacity, or a proportional interest in the solar
electricity generation, of a community solar facility.
(11) Underserved area.--The term ``underserved area'' means
a geographical area with low or no photovoltaic solar
deployment, as determined by the Secretary.
(b) Establishment of Loan and Grant Program.--
(1) In general.--The Secretary shall establish a program
under which the Secretary shall provide loans and grants to
grant-eligible households and loan-eligible entities for use in
accordance with this section.
(2) Funding.--
(A) In general.--Subject to the availability of
appropriations, the Secretary shall make grants and
issue loans in accordance with this subsection.
(B) Loans.--Subject to subparagraph (D), not more
than 50 percent of funds made available under
subparagraph (A) for a fiscal year shall be used to
provide loans to loan-eligible entities for--
(i) community solar facilities; or
(ii) multi-family affordable housing solar
installations.
(C) Grants.--After allocating amounts to carry out
subparagraph (B), the Secretary shall use the remaining
funds made available under subparagraph (A) for a
fiscal year to provide grants to grant-eligible
households--
(i) to pay the upfront costs of
photovoltaic solar electricity generating
facilities; or
(ii) for any other eligible use described
in subsection (e).
(D) Increase in grant amount.--Notwithstanding
subparagraph (A), if the Secretary determines that more
than 50 percent of the amounts described in that
subparagraph are necessary during any of fiscal years
2016 through 2030 to provide grants to encourage
innovative financing and installation models to reach
underserved markets, the Secretary may use more than 50
percent of those amounts to provide those grants.
(3) Goals and accountability.--
(A) In general.--In providing loans and grants
under this subsection, the Secretary shall take such
actions as may be necessary to ensure that--
(i) the assistance provided under this
subsection is used to facilitate and encourage
innovative solar installation and financing
models, under which the recipients develop and
install photovoltaic solar electricity
generating facilities that provide significant
savings to low-income households while
providing job training or community engagement
opportunities with respect to each solar system
installed;
(ii) loan and grant recipients shall--
(I) have installed not less than
600 kilowatts of photovoltaic solar
energy during the 2-year period
preceding the date on which the loan or
grant is provided to ensure consumer
protection; or
(II) until the goal described in
subclause (I) is achieved, enter into
partnership with an entity that--
(aa) has not less than 2
years of experience deploying
solar photovoltaic systems for
low-income households in a
manner that maximizes the
savings benefits of solar
access; and
(bb) was primarily
responsible for the
installation of at least 2
megawatts of solar energy
during the 2-year period
preceding the date on which the
loan or grant is provided;
(iii) the photovoltaic solar electricity
generating facilities installed using
assistance provided under this subsection are
safe, high-quality systems that comply with
local building and safety codes and standards;
(iv) the provision of assistance under this
subsection establishes and fosters a
partnership between the Federal Government and
grant-eligible households and loan-eligible
entities, resulting in efficient development of
solar installations with--
(I) minimal governmental
intervention;
(II) limited governmental
regulation; and
(III) significant involvement by
nonprofit and private entities;
(v) solar projects installed using
assistance provided under this subsection--
(I) shall include job training; and
(II) may include community
participation in which job trainees and
volunteers assist in the development of
solar projects;
(vi) assistance provided under this
subsection prioritizes development in--
(I) areas with low photovoltaic
penetration;
(II) rural areas;
(III) Indian tribal areas; and
(IV) other underserved areas,
including Alaskan Native and
Appalachian communities;
(vii) solar systems are developed using
assistance provided under this subsection on a
geographically diverse basis among the grant-
eligible households and loan-eligible entities;
and
(viii) to the maximum extent practicable,
solar installation activities for which
assistance is provided under this section
leverage, or connect grant-eligible households
to, federally or locally subsidized
weatherization and energy efficiency efforts
that meet or exceed local energy efficiency
standards.
(B) Determination.--If, at any time, the Secretary
determines that the goals described in this paragraph
cannot be met by providing assistance in accordance
with this subsection, the Secretary shall immediately
submit to the appropriate committees of Congress a
written notice of that determination, including any
proposed changes necessary to achieve the goals under
this paragraph.
(4) Community solar facilities.--
(A) In general.--A community solar facility may use
a loan provided under this subsection only to offset
the costs of generation and provision of solar energy
to low-income households that are subscribers of the
community solar facility.
(B) Transfer and assignment of subscriptions.--A
subscription to a community solar facility that
receives assistance under this subsection may be
transferred or assigned by the subscriber to--
(i) any subscriber organization; or
(ii) any individual or entity who qualifies
to be a subscriber to that community solar
facility.
(C) Treatment.--
(i) In general.--No owner, operator, or
subscriber of a community solar facility that
receives assistance under this subsection shall
be subject to regulation by the Federal Energy
Regulatory Commission solely as a result of an
interest in the community solar facility.
(ii) Price of subscription.--The price paid
for any subscription to a community solar
facility shall not be subject to the regulation
of any Federal department, agency, or
commission.
(c) National Competition.--
(1) In general.--The Secretary shall select grant-eligible
households and loan-eligible entities to receive loans or
grants under this section through a nationwide competitive
process, to be established by the Secretary.
(2) Applications.--To be eligible to receive a loan or
grant under this section, a grant-eligible household or loan-
eligible entity shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require.
(3) Requirements.--In selecting grant-eligible households
and loan-eligible entities to receive loans or grants under
this section, the Secretary shall, at a minimum--
(A) require that the grant-eligible household or
loan-eligible entity--
(i) enter into a grant or loan agreement,
as applicable, under subsection (d); and
(ii) has obtained financial commitments (or
has demonstrated the capacity to obtain
financial commitments) necessary to comply with
that agreement;
(B) ensure that loans and grants are provided, and
amounts are used, in a manner that results in
geographical diversity throughout the United States and
within States, territories, and Indian tribal land
among photovoltaic solar electricity generating
facilities installed using the assistance provided
under this section;
(C) to the maximum extent practicable, expand
photovoltaic solar energy availability to--
(i) geographical areas, throughout the
United States and within States, territories,
and Indian tribal land, with--
(I) low photovoltaic solar
penetration; or
(II) areas with a higher cost
burden with respect to the deployment
or installation of photovoltaic solar
electricity generating facilities;
(ii) rural communities;
(iii) Indian tribes; and
(iv) other underserved areas, including
Appalachian and Alaska Native communities;
(D) take into account the warranty period and
quality of the applicable photovoltaic solar
electricity generating facility equipment and any
necessary interconnecting equipment; and
(E) ensure all calculations for estimated household
energy savings are based solely on electricity offsets
from the photovoltaic solar electricity generating
facilities.
(d) Loan and Grant Agreements.--
(1) In general.--As a condition of receiving a loan or
grant under this section, a grant-eligible household or loan-
eligible entity shall enter into a loan or grant agreement, as
applicable, with the Secretary.
(2) Requirements.--A loan or grant agreement under this
subsection shall--
(A) require the grant-eligible household or loan-
eligible entity--
(i) to use the assistance provided under
this section only in accordance with this
section;
(ii) to install such number of solar
systems with such defined capacity target
(expressed in megawatts) as may be established
by the Secretary , taking into consideration
the costs associated with carrying out loan or
grant obligations in the areas in which the
solar systems will be developed;
(iii) to use the assistance in a manner
that leverages other sources of funding (other
than loans or grants under this section),
including private or public funds, in
developing the solar projects; and
(iv) to establish loan terms, if
applicable, that maximize the benefit to the
low-income households receiving solar energy
from the loan-eligible entity;
(B) require the Secretary to rescind any amounts
provided to the grant-eligible household or loan-
eligible entity that are not used during the 2-year
period beginning on the date on which the amounts are
initially distributed to the grant-eligible household
or loan-eligible entity, except in any case in which
the grant-eligible household or loan-eligible entity
has demonstrated to the satisfaction of the Secretary
that a longer period, not to exceed 3 years after the
date of initial distribution, is necessary to deliver
proposed services;
(C) for a loan provided under this section,
establish--
(i) an interest rate equal to the then-
current cost of funds to the Department of the
Treasury for obligations of comparable maturity
to the loan; and
(ii) a payout time that maximizes the
savings to customers during the effective
period of the agreement; and
(D) contain such other terms as the Secretary may
require to ensure compliance with the requirements of
this section.
(e) Use.--A grant-eligible household or loan-eligible entity shall
use a loan or grant provided under this section only for the following
activities, for the purpose of developing new photovoltaic solar
projects in the United States for low-income households and individuals
who otherwise would likely be unable to afford or purchase photovoltaic
solar systems:
(1) Photovoltaic solar equipment and installation.--To pay
the costs of--
(A) solar equipment, including only photovoltaic
solar equipment and storage and all hardware or
software components relating to safely producing,
monitoring, and connecting the system to the electric
grid or onsite storage; and
(B) installation, including all direct labor
associated with installing the photovoltaic solar
equipment.
(2) Job training.--To fund onsite job training and
community or volunteer engagement, including--
(A) only job training costs directly associated
with the solar projects funded under this section; and
(B) job training opportunities that may cover the
full range of the solar value chain, such as marketing
and outreach, customer acquisition, system design, and
installation positions.
(3) Deployment support.--To fund entities that have a
demonstrated ability, as determined by the Secretary--
(A) to advise State and local entities regarding
low-income solar policy, regulatory, and program design
to continue and expand the work of the entities;
(B) to foster community outreach and education
regarding the benefits of photovoltaic solar energy for
low-income and disadvantaged communities; or
(C) to provide apprenticeship program opportunities
registered and approved by--
(i) the Office of Apprenticeship of the
Department of Labor pursuant to part 29 of
title 29, Code of Federal Regulations (or
successor regulations); or
(ii) a State Apprenticeship Agency
recognized by that Office.
(4) Administration.--To pay the administrative expenses of
the grant-eligible household or loan-eligible entity, including
preproject feasibility efforts, in carrying out the duties of
the Secretary associated with delivering proposed services,
subject to the requirement that not more than 15 percent of the
total amount of the assistance provided to the grant-eligible
household or loan-eligible entity under this section may be
used for administrative expenses.
(f) Compliance.--
(1) Records and audits.--During the period beginning on the
date of initial distribution to a grant-eligible household or
loan-eligible entity of a loan or grant under this section and
ending on the termination date of the loan or grant under
subsection (g), the grant-eligible household or loan-eligible
entity shall maintain such records and adopt such
administrative practices as the Secretary may require to ensure
compliance with the requirements of this section and the
applicable loan or grant agreement.
(2) Determination by secretary.--If the Secretary
determines that a grant-eligible household or loan-eligible
entity that receives a grant or loan under this section has
not, during the 2-year period beginning on the date of initial
distribution to the grant-eligible household or loan-eligible
entity of the assistance (or such longer period as is
established under subsection (d)(2)(B)), substantially
fulfilled the obligations of the grant-eligible household or
loan-eligible entity under the applicable loan or grant
agreement, the Secretary shall--
(A) rescind the balance of any funds distributed
to, but not used by, the grant-eligible household or
loan-eligible entity under this section; and
(B) use those amounts to provide other loans or
grants in accordance with this section.
(g) Termination.--The Secretary shall terminate a loan or grant
provided under this section on a determination that the total amount of
the loan or grant (excluding any interest, fees, and other earnings of
the loan or grant) has been--
(1) fully expended by the grant-eligible household or loan-
eligible entity; or
(2) returned to the Secretary.
(h) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall promulgate such regulations
as the Secretary determines to be necessary to carry out this section,
to take effect on the date of promulgation.
(i) Funding.--There is authorized to be appropriated to the
Secretary to carry out this section $200,000,000 for each of fiscal
years 2016 through 2030, to remain available until expended.
Subtitle J--Local Energy Supply and Resiliency Act
SEC. 2121. DEFINITIONS.
In this subtitle:
(1) Combined heat and power system.--The term ``combined
heat and power system'' means generation of electric energy and
heat in a single, integrated system that meets the efficiency
criteria in clauses (ii) and (iii) of section 48(c)(3)(A) of
the Internal Revenue Code of 1986, under which heat that is
conventionally rejected is recovered and used to meet thermal
energy requirements.
(2) Demand response.--The term ``demand response'' means
changes in electric usage by electric utility customers from
the normal consumption patterns of the customers in response
to--
(A) changes in the price of electricity over time;
or
(B) incentive payments designed to induce lower
electricity use at times of high wholesale market
prices or when system reliability is jeopardized.
(3) Distributed energy.--The term ``distributed energy''
means energy sources and systems that--
(A) produce electric or thermal energy close to the
point of use using renewable energy resources or waste
thermal energy;
(B) generate electricity using a combined heat and
power system;
(C) distribute electricity in microgrids;
(D) store electric or thermal energy; or
(E) distribute thermal energy or transfer thermal
energy to building heating and cooling systems through
a district energy system.
(4) District energy system.--The term ``district energy
system'' means a system that provides thermal energy to
buildings and other energy consumers from 1 or more plants to
individual buildings to provide space heating, air
conditioning, domestic hot water, industrial process energy,
and other end uses.
(5) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(6) Loan.--The term ``loan'' has the meaning given the term
``direct loan'' in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(7) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and
distributed energy resources, including generators and energy
storage devices, within clearly defined electrical boundaries
that--
(A) acts as a single controllable entity with
respect to the grid; and
(B) can connect and disconnect from the grid to
operate in both grid-connected mode and island mode.
(8) Renewable energy source.--The term ``renewable energy
source'' includes--
(A) biomass;
(B) geothermal energy;
(C) hydropower;
(D) landfill gas;
(E) municipal solid waste;
(F) ocean (including tidal, wave, current, and
thermal) energy;
(G) organic waste;
(H) photosynthetic processes;
(I) photovoltaic energy;
(J) solar energy; and
(K) wind.
(9) Renewable thermal energy.--The term ``renewable thermal
energy'' means heating or cooling energy derived from a
renewable energy resource.
(10) Thermal energy.--The term ``thermal energy'' means--
(A) heating energy in the form of hot water or
steam that is used to provide space heating, domestic
hot water, or process heat; or
(B) cooling energy in the form of chilled water,
ice, or other media that is used to provide air
conditioning, or process cooling.
(11) Waste thermal energy.--The term ``waste thermal
energy'' means energy that--
(A) is contained in--
(i) exhaust gases, exhaust steam, condenser
water, jacket cooling heat, or lubricating oil
in power generation systems;
(ii) exhaust heat, hot liquids, or flared
gas from any industrial process;
(iii) waste gas or industrial tail gas that
would otherwise be flared, incinerated, or
vented;
(iv) a pressure drop in any gas, excluding
any pressure drop to a condenser that
subsequently vents the resulting heat;
(v) condenser water from chilled water or
refrigeration plants; or
(vi) any other form of waste energy, as
determined by the Secretary; and
(B)(i) in the case of an existing facility, is not
being used; or
(ii) in the case of a new facility, is not
conventionally used in comparable systems.
SEC. 2122. DISTRIBUTED ENERGY LOAN PROGRAM.
(a) Loan Program.--
(1) In general.--Subject to the provisions of this
subsection and subsections (b) and (c), the Secretary shall
establish a program to provide to eligible entities--
(A) loans for the deployment of distributed energy
systems in a specific project; and
(B) loans to provide funding for programs to
finance the deployment of multiple distributed energy
systems through a revolving loan fund, credit
enhancement program, or other financial assistance
program.
(2) Eligibility.--Entities eligible to receive a loan under
paragraph (1) include--
(A) a State, territory, or possession of the United
States;
(B) a State energy office;
(C) a tribal organization (as defined in section 4
of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b));
(D) an institution of higher education (as defined
in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001)); and
(E) an electric utility, including--
(i) a rural electric cooperative;
(ii) a municipally owned electric utility;
and
(iii) an investor-owned utility.
(3) Selection requirements.--In selecting eligible entities
to receive loans under this section, the Secretary shall, to
the maximum extent practicable, ensure--
(A) regional diversity among eligible entities to
receive loans under this section, including
participation by rural States and small States; and
(B) that specific projects selected for loans--
(i) expand on the existing technology
deployment program of the Department of Energy;
and
(ii) are designed to achieve 1 or more of
the objectives described in paragraph (4).
(4) Objectives.--Each deployment selected for a loan under
paragraph (1) shall include 1 or more of the following
objectives:
(A) Improved security and resiliency of energy
supply in the event of disruptions caused by extreme
weather events, grid equipment or software failure, or
terrorist acts.
(B) Implementation of distributed energy in order
to increase use of local renewable energy resources and
waste thermal energy sources.
(C) Enhanced feasibility of microgrids, demand
response, or islanding;
(D) Enhanced management of peak loads for consumers
and the grid.
(E) Enhanced reliability in rural areas, including
high energy cost rural areas.
(5) Restriction on use of funds.--Any eligible entity that
receives a loan under paragraph (1) may only use the loan to
fund programs relating to the deployment of distributed energy
systems.
(b) Loan Terms and Conditions.--
(1) Terms and conditions.--Notwithstanding any other
provision of law, in providing a loan under this section, the
Secretary shall provide the loan on such terms and conditions
as the Secretary determines, after consultation with the
Secretary of the Treasury, in accordance with this section.
(2) Specific appropriation.--No loan shall be made unless
an appropriation for the full amount of the loan has been
specifically provided for that purpose.
(3) Repayment.--No loan shall be made unless the Secretary
determines that there is reasonable prospect of repayment of
the principal and interest by the borrower of the loan.
(4) Interest rate.--A loan provided under this section
shall bear interest at a fixed rate that is equal or
approximately equal, in the determination of the Secretary, to
the interest rate for Treasury securities of comparable
maturity.
(5) Term.--The term of the loan shall require full
repayment over a period not to exceed the lesser of--
(A) 20 years; or
(B) 90 percent of the projected useful life of the
physical asset to be financed by the loan (as
determined by the Secretary).
(6) Use of payments.--Payments of principal and interest on
the loan shall--
(A) be retained by the Secretary to support energy
research and development activities; and
(B) remain available until expended, subject to
such conditions as are contained in annual
appropriations Acts.
(7) No penalty on early repayment.--The Secretary may not
assess any penalty for early repayment of a loan provided under
this section.
(8) Return of unused portion.--In order to receive a loan
under this section, an eligible entity shall agree to return to
the general fund of the Treasury any portion of the loan amount
that is unused by the eligible entity within a reasonable
period of time after the date of the disbursement of the loan,
as determined by the Secretary.
(9) Comparable wage rates.--Each laborer and mechanic
employed by a contractor or subcontractor in performance of
construction work financed, in whole or in part, by the loan
shall be paid wages at rates not less than the rates prevailing
on similar construction in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of chapter
31 of title 40, United States Code.
(c) Rules and Procedures; Disbursement of Loans.--
(1) Rules and procedures.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall adopt
rules and procedures for carrying out the loan program under
subsection (a).
(2) Disbursement of loans.--Not later than 1 year after the
date on which the rules and procedures under paragraph (1) are
established, the Secretary shall disburse the initial loans
provided under this section.
(d) Reports.--Not later than 2 years after the date of receipt of
the loan, and annually thereafter for the term of the loan, an eligible
entity that receives a loan under this section shall submit to the
Secretary a report describing the performance of each program and
activity carried out using the loan, including itemized loan
performance data.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.
SEC. 2123. TECHNICAL ASSISTANCE AND GRANT PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a technical
assistance and grant program (referred to in this section as
the ``program'')--
(A) to disseminate information and provide
technical assistance directly to eligible entities so
the eligible entities can identify, evaluate, plan, and
design distributed energy systems; and
(B) to make grants to eligible entities so that the
eligible entities may contract to obtain technical
assistance to identify, evaluate, plan, and design
distributed energy systems.
(2) Technical assistance.--The technical assistance
described in paragraph (1) shall include assistance with 1 or
more of the following activities relating to distributed energy
systems:
(A) Identification of opportunities to use
distributed energy systems.
(B) Assessment of technical and economic
characteristics.
(C) Utility interconnection.
(D) Permitting and siting issues.
(E) Business planning and financial analysis.
(F) Engineering design.
(3) Information dissemination.--The information
disseminated under paragraph (1)(A) shall include--
(A) information relating to the topics described in
paragraph (2), including case studies of successful
examples;
(B) computer software and databases for assessment,
design, and operation and maintenance of distributed
energy systems; and
(C) public databases that track the operation and
deployment of existing and planned distributed energy
systems.
(b) Eligibility.--Any nonprofit or for-profit entity shall be
eligible to receive technical assistance and grants under the program.
(c) Applications.--
(1) In general.--An eligible entity desiring technical
assistance or grants under the program shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Application process.--The Secretary shall seek
applications for technical assistance and grants under the
program--
(A) on a competitive basis; and
(B) on a periodic basis, but not less frequently
than once every 12 months.
(3) Priorities.--In selecting eligible entities for
technical assistance and grants under the program, the
Secretary shall give priority to eligible entities with
projects that have the greatest potential for--
(A) facilitating the use of renewable energy
resources;
(B) strengthening the reliability and resiliency of
energy infrastructure to the impact of extreme weather
events, power grid failures, and interruptions in
supply of fossil fuels;
(C) improving the feasibility of microgrids or
islanding, particularly in rural areas, including high
energy cost rural areas;
(D) minimizing environmental impact, including
regulated air pollutants and greenhouse gas emissions;
and
(E) maximizing local job creation.
(d) Grants.--On application by an eligible entity, the Secretary
may award grants to the eligible entity to provide funds to cover not
more than--
(1) 100 percent of the costs of the initial assessment to
identify opportunities;
(2) 75 percent of the cost of feasibility studies to assess
the potential for the implementation;
(3) 60 percent of the cost of guidance on overcoming
barriers to implementation, including financial, contracting,
siting, and permitting issues; and
(4) 45 percent of the cost of detailed engineering.
(e) Rules and Procedures.--
(1) Rules.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall adopt rules and
procedures for carrying out the program.
(2) Grants.--Not later than 120 days after the date of
issuance of the rules and procedures for the program, the
Secretary shall issue grants under this subtitle.
(f) Reports.--The Secretary shall submit to Congress and make
available to the public--
(1) not less frequently than once every 2 years, a report
describing the performance of the program under this section,
including a synthesis and analysis of the information provided
in the reports submitted to the Secretary under section
2122(d); and
(2) on termination of the program under this section, an
assessment of the success of, and education provided by, the
measures carried out by eligible entities during the term of
the program.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $250,000,000 for the period of
fiscal years 2016 through 2020, to remain available until expended.
Subtitle K--Geothermal Energy Opportunities
SEC. 2131. NATIONAL GOALS FOR PRODUCTION AND SITE IDENTIFICATION.
It is the sense of Congress that, not later than 10 years after the
date of enactment of this Act--
(1) the Secretary of the Interior should seek to have
approved more than 15,000 megawatts of new geothermal energy
capacity on public land across a geographically diverse set of
States using the full range of available technologies; and
(2) the Director of the Geological Survey and the Secretary
of Energy should identify sites capable of producing a total of
50,000 megawatts of geothermal power, using the full range of
available technologies.
SEC. 2132. PRIORITY AREAS FOR DEVELOPMENT ON FEDERAL LAND.
The Director of the Bureau of Land Management, in consultation with
other appropriate Federal officials, shall--
(1) identify high-priority areas for new geothermal
development; and
(2) take any actions the Director determines necessary to
facilitate that development, consistent with applicable laws.
SEC. 2133. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND
GAS LEASES.
Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1003(b)) is amended by adding at the end the following:
``(4) Land subject to oil and gas lease.--Land under an oil
and gas lease issued pursuant to the Mineral Leasing Act (30
U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired
Lands (30 U.S.C. 351 et seq.) that is subject to an approved
application for permit to drill and from which oil and gas
production is occurring may be available for noncompetitive
leasing under this section to the holder of the oil and gas
lease--
``(A) on a determination that--
``(i) geothermal energy will be produced
from a well producing or capable of producing
oil and gas; and
``(ii) national energy security will be
improved by the issuance of such a lease; and
``(B) to provide for the coproduction of geothermal
energy with oil and gas.''.
SEC. 2134. COST-SHARED EXPLORATION.
(a) In General.--To promote the goals described in section 2131,
the Secretary may conduct a federally funded program of cost-shared
drilling with industry partners--
(1) to explore and document new geothermal resources in the
United States; and
(2) to develop improved tools and methods for geothermal
resource identification and extraction, with the goal of
achieving material reductions in the cost of exploration with a
corresponding increase in the likelihood of drilling success.
(b) Grants.--
(1) In general.--To carry out the program described in
subsection (a), the Secretary may award cost-share grants on a
competitive and merit basis to eligible applicants to support
exploration drilling and related activities.
(2) Project criteria.--In selecting applicants to receive
grants under paragraph (1), the Secretary shall--
(A) give preference to applicants proposing
projects located in a variety of geological and
geographical settings with previously unexplored,
underexplored, or unproven geothermal resources; and
(B) consider--
(i) the potential that the unproven
geothermal resources would be explored and
developed under the proposed project;
(ii) the expertise and experience of an
applicant in developing geothermal resources;
and
(iii) the contribution the proposed project
would make toward meeting the goals described
in section 2131.
(c) Data Sharing.--
(1) In general.--Data from all exploratory wells that are
carried out under the program described in subsection (a) shall
be provided to the Secretary and the Secretary of the Interior
for--
(A) use in mapping national geothermal resources;
and
(B) other purposes, including--
(i) subsurface geological data;
(ii) metadata;
(iii) borehole temperature data; and
(iv) inclusion in the National Geothermal
Data System of the Department.
(2) Sharing of confidential data.--Not later than 2 years
after the date of enactment of this Act, confidential data from
all exploratory wells that are carried out under the program
described in subsection (a) shall be provided to the Secretary
and the Secretary of the Interior for the purposes described in
subparagraphs (A) and (B) of paragraph (1), to be available for
a period of time to be determined by the Secretary and the
Secretary of the Interior.
SEC. 2135. USE OF GEOTHERMAL LEASE REVENUES.
(a) Amounts Deposited.--Notwithstanding any other provision of law,
beginning in the first full fiscal year after the date of enactment of
this Act, any amounts received by the United States as rentals,
royalties, and other payments required under leases pursuant to the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) (excluding funds
required to be paid to State and county governments) and from new
geothermal leases issued after the date of enactment of this Act shall
be deposited into a separate account in the Treasury.
(b) Use of Deposits.--Amounts deposited under subsection (a) shall
be available to the Secretary for expenditure, without further
appropriation or fiscal year limitation, to carry out section 2134.
(c) Transfer of Funds.--To promote the goals described in section
2131, the Secretary may authorize the expenditure or transfer of any
funds that are necessary to other cooperating Federal agencies.
SEC. 2136. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCES.
Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1003(b)) (as amended by section 2133) is amended by adding at the end
the following:
``(5) Adjoining land.--
``(A) Definitions.--In this paragraph:
``(i) Fair market value per acre.--The term
`fair market value per acre' means a dollar
amount per acre that--
``(I) except as provided in this
clause, shall be equal to the market
value per acre (taking into account the
determination under subparagraph
(B)(iii) regarding a valid discovery on
the adjoining land), as determined by
the Secretary under regulations issued
under this paragraph;
``(II) shall be determined by the
Secretary with respect to a lease under
this paragraph, by not later than the
end of the 180-day period beginning on
the date the Secretary receives an
application for the lease; and
``(III) shall be not less than the
greater of--
``(aa) 4 times the median
amount paid per acre for all
land leased under this Act
during the preceding year; and
``(bb) $50.
``(ii) Industry standards.--The term
`industry standards' means the standards by
which a qualified geothermal professional
assesses whether downhole or flowing
temperature measurements with indications of
permeability are sufficient to produce energy
from geothermal resources, as determined
through flow or injection testing or
measurement of lost circulation while drilling.
``(iii) Qualified federal land.--The term
`qualified Federal land' means land that is
otherwise available for leasing under this Act.
``(iv) Qualified geothermal professional.--
The term `qualified geothermal professional'
means an individual who is an engineer or
geoscientist in good professional standing with
at least 5 years of experience in geothermal
exploration, development, or project
assessment.
``(v) Qualified lessee.--The term
`qualified lessee' means a person that is
eligible to hold a geothermal lease under this
Act (including applicable regulations).
``(vi) Valid discovery.--The term `valid
discovery' means a discovery of a geothermal
resource by a new or existing slim hole or
production well, that exhibits downhole or
flowing temperature measurements with
indications of permeability that are sufficient
to meet industry standards.
``(B) Authority.--An area of qualified Federal land
that adjoins other land for which a qualified lessee
holds a legal right to develop geothermal resources may
be available for a noncompetitive lease under this
section to the qualified lessee at the fair market
value per acre, if--
``(i) the area of qualified Federal land--
``(I) consists of not less than 1
acre and not more than 640 acres; and
``(II) is not already leased under
this Act or nominated to be leased
under subsection (a);
``(ii) the qualified lessee has not
previously received a noncompetitive lease
under this paragraph in connection with the
valid discovery for which data has been
submitted under clause (iii)(I); and
``(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been submitted by
the qualified lessee to the applicable Federal
land management agency that would lead
individuals who are experienced in the subject
matter to believe that--
``(I) there is a valid discovery of
geothermal resources on the land for
which the qualified lessee holds the
legal right to develop geothermal
resources; and
``(II) that thermal feature extends
into the adjoining areas.
``(C) Determination of fair market value.--
``(i) In general.--The Secretary shall--
``(I) publish a notice of any
request to lease land under this
paragraph;
``(II) determine fair market value
for purposes of this paragraph in
accordance with procedures for making
those determinations that are
established by regulations issued by
the Secretary;
``(III) provide to a qualified
lessee and publish, with an opportunity
for public comment for a period of 30
days, any proposed determination under
this subparagraph of the fair market
value of an area that the qualified
lessee seeks to lease under this
paragraph; and
``(IV) provide to the qualified
lessee and any adversely affected party
the opportunity to appeal the final
determination of fair market value in
an administrative proceeding before the
applicable Federal land management
agency, in accordance with applicable
law (including regulations).
``(ii) Limitation on nomination.--After
publication of a notice of request to lease
land under this paragraph, the Secretary may
not accept under subsection (a) any nomination
of the land for leasing unless the request has
been denied or withdrawn.
``(iii) Annual rental.--For purposes of
section 5(a)(3), a lease awarded under this
paragraph shall be considered a lease awarded
in a competitive lease sale.
``(D) Regulations.--Not later than 270 days after
the date of enactment of this paragraph, the Secretary
shall issue regulations to carry out this paragraph.''.
SEC. 2137. LARGE-SCALE GEOTHERMAL ENERGY.
Title VI of the Energy Independence and Security Act of 2007 is
amended by inserting after section 616 (42 U.S.C. 17195) the following:
``SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.
``(a) Findings.--Congress finds that--
``(1) the Geothermal Technologies Program of the Office of
Energy Efficiency and Renewable Energy of the Department has
included a focus on direct use of geothermal energy in the low-
temperature geothermal energy subprogram (including in the
development of a research and development plan for the
program);
``(2) the Building Technologies Program of the Office of
Energy Efficiency and Renewable Energy of the Department--
``(A) is focused on the energy demand and energy
efficiency of buildings; and
``(B) includes geothermal heat pumps as a component
technology in the residential and commercial deployment
activities of the program; and
``(3) geothermal heat pumps and direct use of geothermal
energy, especially in large-scale applications, can make a
significant contribution to the use of renewable energy but are
underrepresented in research, development, demonstration, and
commercialization.
``(b) Purposes.--The purposes of this section are--
``(1) to improve the components, processes, and systems
used for geothermal heat pumps and the direct use of geothermal
energy; and
``(2) to increase the energy efficiency, lower the cost,
increase the use, and improve and demonstrate the applicability
of geothermal heat pumps to, and the direct use of geothermal
energy in, large buildings, commercial districts, residential
communities, and large municipal, agricultural, or industrial
projects.
``(c) Definitions.--In this section:
``(1) Direct use of geothermal energy.--The term `direct
use of geothermal energy' means systems that use water that is
at a temperature between approximately 38 degrees Celsius and
149 degrees Celsius directly or through a heat exchanger to
provide--
``(A) heating to buildings; or
``(B) heat required for industrial processes,
agriculture, aquaculture, and other facilities.
``(2) Geothermal heat pump.--The term `geothermal heat
pump' means a system that provides heating and cooling by
exchanging heat from shallow ground or surface water using--
``(A) a closed loop system, which transfers heat by
way of buried or immersed pipes that contain a mix of
water and working fluid; or
``(B) an open loop system, which circulates ground
or surface water directly into the building and returns
the water to the same aquifer or surface water source.
``(3) Large-scale application.--The term `large-scale
application' means an application for space or process heating
or cooling for large entities with a name-plate capacity,
expected resource, or rating of 10 or more megawatts, such as a
large building, commercial district, residential community, or
a large municipal, agricultural, or industrial project.
``(4) Secretary.--The term `Secretary' means the Secretary
of Energy, acting through the Assistant Secretary for Energy
Efficiency and Renewable Energy.
``(d) Program.--
``(1) In general.--The Secretary shall establish a program
of research, development, and demonstration for geothermal heat
pumps and the direct use of geothermal energy.
``(2) Areas.--The program may include research,
development, demonstration, and commercial application of--
``(A) geothermal ground loop efficiency
improvements through more efficient heat transfer
fluids;
``(B) geothermal ground loop efficiency
improvements through more efficient thermal grouts for
wells and trenches;
``(C) geothermal ground loop installation cost
reduction through--
``(i) improved drilling methods;
``(ii) improvements in drilling equipment;
``(iii) improvements in design methodology
and energy analysis procedures; and
``(iv) improved methods for determination
of ground thermal properties and ground
temperatures;
``(D) installing geothermal ground loops near the
foundation walls of new construction to take advantage
of existing structures;
``(E) using gray or black wastewater as a method of
heat exchange;
``(F) improving geothermal heat pump system
economics through integration of geothermal systems
with other building systems, including providing hot
and cold water and rejecting or circulating industrial
process heat through refrigeration heat rejection and
waste heat recovery;
``(G) advanced geothermal systems using variable
pumping rates to increase efficiency;
``(H) geothermal heat pump efficiency improvements;
``(I) use of hot water found in mines and mine
shafts and other surface waters as the heat exchange
medium;
``(J) heating of districts, neighborhoods,
communities, large commercial or public buildings
(including office, retail, educational, government, and
institutional buildings and multifamily residential
buildings and campuses), and industrial and
manufacturing facilities;
``(K) geothermal system integration with solar
thermal water heating or cool roofs and solar-
regenerated desiccants to balance loads and use
building hot water to store geothermal energy;
``(L) use of hot water coproduced from oil and gas
recovery;
``(M) use of water sources at a temperature of less
than 150 degrees Celsius for direct use;
``(N) system integration of direct use with
geothermal electricity production; and
``(O) coproduction of heat and power, including on-
site use.
``(3) Environmental impacts.--In carrying out the program,
the Secretary shall identify and mitigate potential
environmental impacts in accordance with section 614(c).
``(e) Grants.--
``(1) In general.--The Secretary shall make grants
available to State and local governments, institutions of
higher education, nonprofit entities, utilities, and for-profit
companies (including manufacturers of heat-pump and direct-use
components and systems) to promote the development of
geothermal heat pumps and the direct use of geothermal energy.
``(2) Priority.--In making grants under this subsection,
the Secretary shall give priority to proposals that apply to
large buildings (including office, retail, educational,
government, institutional, and multifamily residential
buildings and campuses and industrial and manufacturing
facilities), commercial districts, and residential communities.
``(3) National solicitation.--Not later than 180 days after
the date of enactment of this section, the Secretary shall
conduct a national solicitation for applications for grants
under this section.
``(f) Reports.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section and annually thereafter, the
Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Science, Space,
and Technology of the House of Representatives a report on
progress made and results obtained under this section to
develop geothermal heat pumps and direct use of geothermal
energy.
``(2) Areas.--Each of the reports required under this
subsection shall include--
``(A) an analysis of progress made in each of the
areas described in subsection (d)(2); and
``(B)(i) a description of any relevant
recommendations made during a review of the program;
and
``(ii) any plans to address the recommendations
under clause (i).''.
SEC. 2138. REPORT TO CONGRESS.
Not later than 3 years after the date of enactment of this Act and
not less frequently than once every 5 years thereafter, the Secretary
and the Secretary of the Interior shall submit to the appropriate
committees of Congress a report describing the progress made towards
achieving the goals described in section 2131.
SEC. 2139. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
such sums as are necessary.
Subtitle L--Clean Coal Technology Research
SEC. 2141. FOSSIL ENERGY.
Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C.
16291(a)) is amended by adding at the end the following:
``(8) Improving the conversion, use, and storage of carbon
dioxide produced from fossil fuels.''.
Subtitle M--Long-term Contracts
SEC. 2151. CONTRACTS FOR FEDERAL PURCHASES OF ENERGY.
Part 3 of title V of the National Energy Conservation Policy Act is
amended by adding after section 553 (42 U.S.C. 8259b) the following:
``SEC. 554. LONG-TERM CONTRACTS FOR ENERGY.
``(a) In General.--Notwithstanding section 501(b)(1)(B) of title
40, United States Code, a contract for the acquisition of renewable
energy or energy from cogeneration facilities for the Federal
Government may be made for a period not to exceed 30 years.
``(b) Standardized Energy Purchase Agreement.--Not later than 90
days after the date of enactment of this section, the Secretary, acting
through the Federal Energy Management Program, shall publish a
standardized energy purchase agreement setting forth commercial terms
and conditions that agencies may use to acquire renewable energy or
energy from cogeneration facilities.
``(c) Technical Assistance.--The Secretary shall provide technical
assistance to assist agencies in implementing this section.''.
Subtitle N--Promoting Renewable Energy With Shared Solar
SEC. 2161. PROVISION OF INTERCONNECTION SERVICE AND NET BILLING SERVICE
FOR COMMUNITY SOLAR FACILITIES.
(a) In General.--Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) (as amended by section
2020(a)) is amended by adding at the end the following:
``(21) Community solar facilities.--
``(A) Definitions.--In this paragraph:
``(i) Community solar facility.--The term
`community solar facility' means a solar
photovoltaic system that--
``(I) allocates electricity to
multiple individual electric consumers
of an electric utility;
``(II) has a nameplate rating of 2
megawatts or less; and
``(III) is--
``(aa) owned by the
electric utility, jointly
owned, or third-party-owned;
``(bb) connected to a local
distribution facility of the
electric utility; and
``(cc) located on or off
the property of a consumer of
the electricity.
``(ii) Interconnection service.--The term
`interconnection service' means a service
provided by an electric utility to an electric
consumer, in accordance with the standards
described in paragraph (15), through which a
community solar facility is connected to an
applicable local distribution facility.
``(iii) Net billing service.--The term `net
billing service' means a service provided by an
electric utility to an electric consumer
through which electric energy generated for
that electric consumer from a community solar
facility may be used to offset electric energy
provided by the electric utility to the
electric consumer during the applicable billing
period.
``(B) Requirement.--On receipt of a request of an
electric consumer served by the electric utility, each
electric utility shall make available to the electric
consumer interconnection service and net billing
service for a community solar facility.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as amended
by section 2020(b)(1)) is amended by adding at the end the
following:
``(8)(A) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which the State has
ratemaking authority) and each nonregulated utility shall
commence consideration under section 111, or set a hearing date
for consideration, with respect to the standard established by
paragraph (21) of section 111(d).
``(B) Not later than 2 years after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which the State has ratemaking
authority), and each nonregulated electric utility shall
complete the consideration and make the determination under
section 111 with respect to the standard established by
paragraph (21) of section 111(d).''.
(2) Failure to comply.--
(A) In general.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(c)) (as amended by section 2020(b)(2)) is
amended--
(i) by striking ``such paragraph (14)'' and
all that follows through ``paragraphs (16)''
and inserting ``such paragraph (14). In the
case of the standard established by paragraph
(15) of section 111(d), the reference contained
in this subsection to the date of enactment of
this Act shall be deemed to be a reference to
the date of enactment of that paragraph (15).
In the case of the standards established by
paragraphs (16)''; and
(ii) by adding at the end the following:
``In the case of the standard established by
paragraph (21) of section 111(d), the reference
contained in this subsection to the date of
enactment of this Act shall be deemed to be a
reference to the date of enactment of that
paragraph (21).''.
(B) Technical correction.--
(i) In general.--Section 1254(b) of the
Energy Policy Act of 2005 (Public Law 109-58;
119 Stat. 971) is amended by striking paragraph
(2).
(ii) Treatment.--The amendment made by
paragraph (2) of section 1254(b) of the Energy
Policy Act of 2005 (Public Law 109-58; 119
Stat. 971) (as in effect on the day before the
date of enactment of this Act) is void, and
section 112(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2622(d)) shall
be in effect as if those amendments had not
been enacted.
(3) Prior state actions.--
(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:
``(g) Prior State Actions.--Subsections (b) and (c) shall not apply
to the standard established by paragraph (21) of section 111(d) in the
case of any electric utility in a State if, before the date of
enactment of this subsection--
``(1) the State has implemented for the electric utility
the standard (or a comparable standard);
``(2) the State regulatory authority for the State or the
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard (or a
comparable standard) for the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility.''.
(B) Cross-reference.--Section 124 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2634) is amended by adding at the end the following:
``In the case of the standard established by paragraph
(21) of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of
that paragraph (21).''.
Subtitle O--Report on Low- and No-Carbon Energy Technologies
SEC. 2171. REPORT.
(a) In General.--Not later than 1 year before the date on which the
credits under sections 45L, 45S, 45T, 48E, 179D, and 179F of the
Internal Revenue Code of 1986 expire, the Secretary, in consultation
with the Secretary of Treasury, shall submit to the Committees on
Finance and Energy of the Senate and the Committees on Natural
Resources, Ways and Means, and Energy and Commerce of the House of
Representative a report on whether continuation of the credits under
sections 45L, 45S, 45T, 48E, 179D, and 179F of the Internal Revenue
Code of 1986 remains necessary to achieve the carbon savings goal
described in section 3001(1).
(b) Requirements.--In preparing the report required under
subsection (a), the Secretary shall consider--
(1) regional differences in energy prices;
(2) the innovation and diffusion of new technologies; and
(3) the interaction between the credits and other Federal
and State incentives for renewable and conventional energy
sources.
Subtitle P--Loan Programs
SEC. 2181. TERMS AND CONDITIONS FOR INCENTIVES FOR INNOVATIVE
TECHNOLOGIES.
(a) Borrower Payment of Subsidy Cost.--
(1) In general.--Section 1702 of the Energy Policy Act of
2005 (42 U.S.C. 16512) is amended by adding at the end the
following:
``(l) Borrower Payment of Subsidy Cost.--
``(1) In general.--In addition to the requirement in
subsection (b)(1), no guarantee shall be made unless the
Secretary has received from the borrower not less than 25
percent of the cost of the guarantee.
``(2) Estimate.--The Secretary shall provide to the
borrower, as soon as practicable, an estimate or range of the
cost of the guarantee under paragraph (1).''.
(2) Conforming amendment.--Section 1702(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(b)) is amended--
(A) by striking ``(1) In general.--No guarantee''
and inserting the following: ``Subject to subsection
(l), no guarantee'';
(B) by redesignating subparagraphs (A), (B), and
(C) as paragraphs (1), (2), and (3), respectively, and
indenting appropriately; and
(C) in paragraph (3) (as so redesignated)--
(i) by striking ``subparagraph (A)'' and
inserting ``paragraph (1)''; and
(ii) by striking ``subparagraph (B)'' and
inserting ``paragraph (2)''.
(b) Prohibition on Subordination of Debt.--Section 1702(d)(3) of
the Energy Policy Act of 2005 (42 U.S.C. 16512(d)(3)) is amended by
striking ``is not subordinate'' and inserting ``(including any
reorganization, restructuring, or termination of the obligation) shall
not at any time be subordinate''.
(c) Loan Program Transparency.--Section 1703 of the Energy Policy
Act of 2005 (42 U.S.C. 16513) is amended by adding at the end the
following:
``(f) Loan Status.--
``(1) Request.--If the Secretary does not make a final
decision on an application for a loan guarantee under this
section by the date that is 270 days after receipt of the
application by the Secretary, on that date and every 90 days
thereafter until the final decision is made, the applicant may
request that the Secretary provide to the applicant a
description of the status of the application.
``(2) Response.--Not later than 10 days after receiving a
request from an applicant under paragraph (1), the Secretary
shall provide to the applicant a response that includes--
``(A) a summary of any factors that are delaying a
final decision on the application; and
``(B) an estimate of when review of the application
will be completed.''.
(d) Temporary Program for Rapid Deployment of Renewable Energy and
Electric Power Transmission Projects.--
(1) Repeal.--Section 1705 of the Energy Policy Act of 2005
(42 U.S.C. 16516) is repealed.
(2) Rescission.--There is rescinded the unobligated balance
of amounts made available to carry out the loan guarantee
program established under section 1705 of the Energy Policy Act
of 2005 (42 U.S.C. 16516) (before the amendment made by
paragraph (1)).
(3) Management.--The Secretary shall ensure rigorous
continued management and oversight of all outstanding loans
guaranteed under the program described in subsection (b) until
those loans have been repaid in full.
SEC. 2182. STATE LOAN ELIGIBILITY.
(a) Definitions.--Section 1701 of the Energy Policy Act of 2005 (42
U.S.C. 16511) is amended by adding at the end the following:
``(6) State.--The term `State' has the meaning given the
term in section 202 of the Energy Conservation and Production
Act (42 U.S.C. 6802).
``(7) State energy financing institution.--
``(A) In general.--The term `State energy financing
institution' means a quasi-independent entity or an
entity within a State agency or financing authority
established by a State--
``(i) to provide financing support or
credit enhancements, including loan guarantees
and loan loss reserves, for eligible projects;
and
``(ii) to create liquid markets for
eligible projects, including warehousing and
securitization, or take other steps to reduce
financial barriers to the deployment of
existing and new eligible projects.
``(B) Inclusion.--The term `State energy financing
institution' includes an entity or organization
established to achieve the purposes described in
clauses (i) and (ii) of subparagraph (A) by an Indian
tribal entity or an Alaska Native Corporation.''.
(b) Terms and Conditions.--Section 1702 of the Energy Policy Act of
2005 (42 U.S.C. 16512) (as amended by section 4001(a)(1)) is amended--
(1) in subsection (a), by inserting ``or to a State energy
financing institution'' after ``for projects''; and
(2) by adding at the end the following:
``(m) State Energy Financing Institutions.--
``(1) Eligibility.--To be eligible for a guarantee under
this title, a State energy financing institution--
``(A) shall meet the requirements of section
1703(a)(1); and
``(B) shall not be required to meet the
requirements of section 1703(a)(2).
``(2) Partnerships authorized.--In carrying out a project
receiving a loan guarantee under this title, State energy
financing institutions may enter into partnerships with private
entities, tribal entities, and Alaska Native corporations.''.
TITLE III--CUTTING POLLUTION AND WASTE
Subtitle A--Carbon Savings Goal
SEC. 3001. POLICY OF UNITED STATES ON ADDRESSING CLIMATE CHANGE.
It is the policy of the United States--
(1) to use appropriate authorities and available
technologies to reduce the greenhouse gas emissions of the
United States by not less than 2 percent per year on average
through 2025;
(2) to make the investments necessary to improve the
resilience of vulnerable communities and infrastructure in the
United States to the impacts of climate change that can no
longer be prevented; and
(3) to exercise the international leadership position of
the United States to address climate change by securing
commitments from other major carbon-emitting countries to meet
their own carbon pollution reduction targets in a transparent
and verifiable manner.
Subtitle B--American Energy Efficiency
SEC. 3011. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY
AND NATURAL GAS SUPPLIERS.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL
ELECTRICITY AND NATURAL GAS SUPPLIERS.
``(a) Definitions.--In this section:
``(1) Base quantity.--
``(A) In general.--The term `base quantity', with
respect to a retail electricity supplier or retail
natural gas supplier, means, for each calendar year for
which a performance standard is established under
subsection (c), the average annual quantity of
electricity or natural gas delivered by the retail
electricity supplier or retail natural gas supplier to
retail customers during the 3 calendar years
immediately preceding the first year that compliance is
required under subsection (c)(1).
``(B) Exclusion.--The term `base quantity', with
respect to a retail natural gas supplier, does not
include natural gas delivered for purposes of
electricity generation.
``(2) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity or
natural gas consumption (including waste heat energy savings)
at a facility of an end-use consumer of electricity or natural
gas served by a retail electricity supplier or natural gas
supplier, as compared to--
``(A) in the case of a new facility, consumption at
a reference facility of average efficiency;
``(B) in the case of an existing facility,
consumption at the facility during a base period of not
less than 1 year;
``(C) in the case of new equipment that replaces
existing equipment at the end of the useful life of the
existing equipment, consumption by new equipment of
average efficiency of the same equipment type, except
that customer savings under this subparagraph shall not
be counted towards customer savings under subparagraph
(A) or (B); and
``(D) in the case of new equipment that replaces
existing equipment with remaining useful life--
``(i) consumption of the existing equipment
for the remaining useful life of the equipment;
and
``(ii) thereafter, consumption of new
equipment of average efficiency.
``(3) Electricity savings.--The term `electricity savings'
means reductions in electricity consumption achieved through
measures implemented after the date of enactment of this
section, as determined in accordance with regulations
promulgated by the Secretary, that are limited to--
``(A) customer facility savings of electricity,
adjusted to reflect any associated increase in fuel
consumption at the facility;
``(B) reductions in distribution system losses of
electricity achieved by a retail electricity supplier,
as compared to losses attributable to new or
replacement distribution system equipment of average
efficiency, as defined in regulations promulgated by
the Secretary;
``(C) CHP savings;
``(D) codes and standards savings of electricity;
and
``(E) fuel switching energy savings that results in
net savings of electricity.
``(4) Natural gas savings.--The term `natural gas savings'
means reductions in natural gas consumption from measures
implemented after the date of enactment of this section, as
determined in accordance with regulations promulgated by the
Secretary, that are limited to--
``(A) customer facility savings of natural gas,
adjusted to reflect any associated increase in
electricity consumption or consumption of other fuels
at the facility;
``(B) reductions in leakage, operational losses,
and consumption of natural gas fuel to operate a gas
distribution system, achieved by a retail natural gas
supplier, as compared to similar leakage, losses, and
consumption during a base period of not less than 1
year;
``(C) codes and standards savings of natural gas;
and
``(D) fuel switching energy savings that results in
net savings of natural gas.
``(5) Retail electricity supplier.--
``(A) In general.--The term `retail electricity
supplier' means, for any given calendar year, an
electric utility that sells not less than 1,000,000
megawatt hours of electric energy to electric consumers
for purposes other than resale during the preceding
calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether an electric utility qualifies as a
retail electricity supplier under subparagraph (A)--
``(i) deliveries by any affiliate of an
electric utility to electric consumers for
purposes other than resale shall be considered
to be deliveries by the electric utility; and
``(ii) deliveries by any electric utility
to a lessee, tenant, or affiliate of the
electric utility shall not be considered to be
deliveries to electric consumers.
``(6) Retail natural gas supplier.--
``(A) In general.--The term `retail natural gas
supplier' means, for any given calendar year, a local
distribution company (as defined in section 2 of the
Natural Gas Policy Act of 1978 (15 U.S.C. 3301)), that
delivered to natural gas consumers more than
5,000,000,000 cubic feet of natural gas for purposes
other than resale during the preceding calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether a person qualifies as a retail
natural gas supplier under subparagraph (A)--
``(i) deliveries of natural gas by any
affiliate of a local distribution company to
consumers for purposes other than resale shall
be considered to be deliveries by the local
distribution company; and
``(ii) deliveries of natural gas to a
lessee, tenant, or affiliate of a local
distribution company shall not be considered to
be deliveries to natural gas consumers.
``(b) Establishment of Program.--
``(1) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall, by regulation,
establish a program to implement and enforce the requirements
of this section, including by--
``(A) defining the terms `CHP savings', `code and
standards savings', `combined heat and power system',
`cost-effective', `fuel switching energy savings',
`reporting period', `third-party efficiency provider',
and `waste heat energy savings';
``(B) establishing measurement and verification
procedures and standards that count only measures and
savings that are additional to business-as-usual
customer purchase practices;
``(C) establishing requirements under which retail
electricity suppliers and retail natural gas suppliers
shall--
``(i) demonstrate, document, and report the
compliance of the retail electricity suppliers
and retail natural gas suppliers with the
performance standards under subsection (c); and
``(ii) estimate the impact of the standards
on current and future electricity and natural
gas use in the service territories of the
suppliers;
``(D) establishing requirements governing
applications for, and implementation of, delegated
State administration under subsection (e); and
``(E) establishing rules to govern transfers of
electricity or natural gas savings between suppliers
and third-party efficiency providers serving the same
State and between suppliers and third-party efficiency
providers serving different States.
``(2) Coordination with state programs.--In establishing
and implementing this section, the Secretary shall, to the
maximum extent practicable, preserve the integrity and
incorporate best practices of existing State energy efficiency
programs.
``(c) Performance Standards.--
``(1) Compliance obligation.--Not later than May 1 of the
calendar year immediately following each reporting period--
``(A) each retail electricity supplier shall submit
to the Secretary a report, in accordance with
regulations promulgated by the Secretary, demonstrating
that the retail electricity supplier has achieved
cumulative electricity savings (adjusted to account for
any attrition of savings measures implemented in prior
years) in each calendar year that are equal to the
applicable percentage of the base quantity of the
retail electricity supplier; and
``(B) each retail natural gas supplier shall submit
to the Secretary a report, in accordance with
regulations promulgated by the Secretary, demonstrating
that it has achieved cumulative natural gas savings
(adjusted to account for any attrition of savings
measures implemented in prior years) in each calendar
year that are equal to the applicable percentage of the
base quantity of such retail natural gas supplier.
``(2) Standards for 2017 through 2030.--For each of
calendar years 2017 through 2030, the applicable percentages
are as follows:
------------------------------------------------------------------------
Cumulative Electricity Cumulative Natural Gas
``Calendar Year Savings Percentage Savings Percentage
------------------------------------------------------------------------
2017 1.00 0.50
------------------------------------------------------------------------
2018 2.00 1.25
------------------------------------------------------------------------
2019 3.00 2.00
------------------------------------------------------------------------
2020 4.25 3.00
------------------------------------------------------------------------
2021 5.50 4.00
------------------------------------------------------------------------
2022 7.00 5.00
------------------------------------------------------------------------
2023 8.50 6.00
------------------------------------------------------------------------
2024 10.00 7.00
------------------------------------------------------------------------
2025 11.50 8.00
------------------------------------------------------------------------
2026 13.00 9.00
------------------------------------------------------------------------
2027 14.75 10.00
------------------------------------------------------------------------
2028 16.50 11.00
------------------------------------------------------------------------
2029 18.25 12.00
------------------------------------------------------------------------
2030 20.00 13.00.
------------------------------------------------------------------------
``(3) Subsequent years.--
``(A) Calendar years 2031 through 2040.--Not later
than December 31, 2028, the Secretary shall promulgate
regulations establishing performance standards
(expressed as applicable percentages of base quantity
for both cumulative electricity savings and cumulative
natural gas savings) for each of calendar years 2031
through 2040.
``(B) Requirements.--The Secretary shall establish
standards under this paragraph at levels reflecting the
maximum achievable level of cost-effective energy
efficiency potential, taking into account--
``(i) cost-effective energy savings
achieved by leading retail electricity
suppliers and retail natural gas suppliers;
``(ii) opportunities for new codes and
standard savings;
``(iii) technology improvements; and
``(iv) other indicators of cost-effective
energy efficiency potential including
differences between States.
``(C) Minimum percentage.--In no case shall the
applicable percentages for any calendar year be less
than the applicable percentages for calendar year 2030.
``(4) Delay of submission for first reporting period.--
``(A) In general.--Notwithstanding paragraphs (1)
and (2), for the 2017 reporting period, the Secretary
may accept a request from a retail electricity supplier
or a retail natural gas supplier to delay the required
submission of documentation of all or part of the
required savings for up to 2 years.
``(B) Plan for compliance.--The request for delay
under subparagraph (A) shall include a plan for coming
into full compliance by the end of the 2018-2019
reporting period.
``(5) Applying unused savings to future years.--If savings
achieved in a year exceed the performance standards specified
in this subsection, any savings in excess of the performance
standards may be applied toward performance standards specified
for future years.
``(d) Enforcement and Judicial Review.--
``(1) Review of retail supplier reports.--
``(A) In general.--The Secretary shall review each
report submitted to the Secretary by a retail
electricity supplier or retail natural gas supplier
under subsection (c) to verify that the applicable
performance standards under subsection (c) have been
met.
``(B) Exclusion.--In determining compliance with
the applicable performance standards under subsection
(c), the Secretary shall exclude reported electricity
savings or natural gas savings that are not adequately
demonstrated and documented, in accordance with the
regulations promulgated under subsections (b) and (c).
``(2) Penalty for failure to document adequate savings.--If
a retail electricity supplier or a retail natural gas supplier
fails to demonstrate compliance with an applicable performance
standard under subsection (c), or to pay to the State an
applicable alternative compliance payment under subsection
(e)(3), the Secretary shall assess against the retail
electricity supplier or retail natural gas supplier a civil
penalty for each failure in an amount equal to, as adjusted for
inflation in accordance with such regulations as the Secretary
may promulgate--
``(A) $100 per megawatt hour of electricity savings
or alternative compliance payment that the retail
electricity supplier failed to achieve or make,
respectively; or
``(B) $10 per million Btu of natural gas savings or
alternative compliance payment that the retail natural
gas supplier failed to achieve or make, respectively.
``(3) Offsetting state penalties.--The Secretary shall
reduce the amount of any penalty under paragraph (2) by the
amount paid by the relevant retail electricity supplier or
retail natural gas supplier to a State for failure to comply
with the requirements of a State energy efficiency resource
standard during the same compliance period.
``(4) Enforcement procedures.--The Secretary shall assess a
civil penalty, as provided under paragraph (2), in accordance
with the procedures described in section 333(d) of the Energy
Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(e) State Administration.--
``(1) In general.--On receipt of an application from the
Governor of a State (including the Mayor of the District of
Columbia), the Secretary may delegate to the State
responsibility for administering this section within the
territory of the State if the Secretary determines that the
State will implement an energy efficiency program that meets or
exceeds the requirements of this section.
``(2) Secretarial determination.--Not later than 180 days
after the date on which a complete application is received by
the Secretary, the Secretary shall make a substantive
determination approving or disapproving a State application,
after public notice and comment.
``(3) Alternative compliance payments.--
``(A) In general.--As part of an application
submitted under paragraph (1), a State may permit
retail electricity suppliers or retail natural gas
suppliers to pay to the State, by not later than May 1
of the calendar year immediately following the
applicable reporting period, an alternative compliance
payment in an amount equal to, as adjusted for
inflation in accordance with such regulations as the
Secretary may promulgate, not less than--
``(i) $50 per megawatt hour of electricity
savings needed to make up any deficit with
regard to a compliance obligation under the
applicable performance standard; or
``(ii) $5 per million Btu of natural gas
savings needed to make up any deficit with
regard to a compliance obligation under the
applicable performance standard.
``(B) Use of payments.--Alternative compliance
payments collected by a State under subparagraph (A)
shall be used by the State to administer the delegated
authority of the State under this section and to
implement cost-effective energy efficiency programs
that--
``(i) to the maximum extent practicable,
achieve electricity savings and natural gas
savings in the State sufficient to make up the
deficit associated with the alternative
compliance payments; and
``(ii) can be measured and verified in
accordance with the applicable procedures and
standards under subsection (b)(1)(B).
``(4) Review of state implementation.--
``(A) Periodic review.--Every 2 years, the
Secretary shall review State implementation of this
section for conformance with the requirements of this
section in approximately \1/2\ of the States that have
received approval under this subsection to administer
the program, so that each State shall be reviewed at
least every 4 years.
``(B) Report.--To facilitate the review under
subparagraph (A), the Secretary may require the State
to submit a report demonstrating the conformance of the
State with the requirements of this section.
``(C) Deficiencies.--
``(i) In general.--In completing a review
under this paragraph, if the Secretary finds
deficiencies, the Secretary shall--
``(I) notify the State of the
deficiencies;
``(II) direct the State to correct
the deficiencies; and
``(III) require the State to report
to the Secretary on progress made by
not later than 180 days after the date
on which the State receives notice
under subclause (I).
``(ii) Substantial deficiencies.--If the
deficiencies are substantial, the Secretary
shall--
``(I) disallow the reported
electricity savings or natural gas
savings that the Secretary determines
are not credible due to deficiencies;
``(II) re-review the State not
later than 2 years after the date on
which the original review was
completed; and
``(III) if substantial deficiencies
remain uncorrected after the review
provided for under subclause (II),
revoke the authority of the State to
administer the program established
under this section.
``(f) Information and Reports.--In accordance with section 13 of
the Federal Energy Administration Act of 1974 (15 U.S.C. 772), the
Secretary may require any retail electricity supplier, retail natural
gas supplier, third-party efficiency provider, or any other entity that
the Secretary determines appropriate, to provide any information the
Secretary determines appropriate to carry out this section.
``(g) State Law.--Nothing in this section diminishes or qualifies
any authority of a State or political subdivision of a State to adopt
or enforce any law or regulation respecting electricity savings or
natural gas savings, including any law or regulation establishing
energy efficiency requirements that are more stringent than those under
this section, except that no State law or regulation shall relieve any
person of any requirement otherwise applicable under this section.''.
(b) Conforming Amendment.--The table of contents of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is
amended by adding at the end of the items relating to title VI the
following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal energy efficiency resource standard for retail
electricity and natural gas suppliers.''.
Subtitle C--Energy Efficiency Retrofit Program
SEC. 3021. ENERGY EFFICIENCY RETROFIT PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Applicant.--The term ``applicant'' means a nonprofit
organization that applies for a grant under this section.
(2) Energy-efficiency improvement.--
(A) In general.--The term ``energy-efficiency
improvement'' means an installed measure (including a
product, equipment, system, service, or practice) that
results in a reduction in use by a nonprofit
organization for energy or fuel supplied from outside
the nonprofit building.
(B) Inclusions.--The term ``energy-efficiency
improvement'' includes an installed measure described
in subparagraph (A) involving--
(i) repairing, replacing, or installing--
(I) a roof or lighting system, or
component of a roof or lighting system;
(II) a window;
(III) a door, including a security
door; or
(IV) a heating, ventilation, or air
conditioning system or component of the
system (including insulation and wiring
and plumbing improvements needed to
serve a more efficient system);
(ii) a renewable energy generation or
heating system, including a solar,
photovoltaic, wind, geothermal, or biomass
(including wood pellet) system or component of
the system; and
(iii) any other measure taken to modernize,
renovate, or repair a nonprofit building to
make the nonprofit building more energy
efficient.
(3) Nonprofit building.--
(A) In general.--The term ``nonprofit building''
means a building operated and owned by a nonprofit
organization.
(B) Inclusions.--The term ``nonprofit building''
includes a building described in subparagraph (A) that
is--
(i) a hospital;
(ii) a youth center;
(iii) a school;
(iv) a social-welfare program facility;
(v) a faith-based organization; and
(vi) any other nonresidential and
noncommercial structure.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a pilot program to
award grants for the purpose of retrofitting nonprofit buildings with
energy-efficiency improvements.
(c) Grants.--
(1) In general.--The Secretary may award grants under the
program established under subsection (b).
(2) Application.--The Secretary may award a grant under
this section if an applicant submits to the Secretary an
application at such time, in such form, and containing such
information as the Secretary may prescribe.
(3) Criteria for grant.--In determining whether to award a
grant under this section, the Secretary shall apply
performance-based criteria, which shall give priority to
applications based on--
(A) the energy savings achieved;
(B) the cost-effectiveness of the energy-efficiency
improvement;
(C) an effective plan for evaluation, measurement,
and verification of energy savings;
(D) the financial need of the applicant; and
(E) the percentage of the matching contribution by
the applicant.
(4) Limitation on individual grant amount.--Each grant
awarded under this section shall not exceed--
(A) an amount equal to 50 percent of the energy-
efficiency improvement; and
(B) $200,000.
(5) Cost sharing.--
(A) In general.--A grant awarded under this section
shall be subject to a minimum non-Federal cost-sharing
requirement of 50 percent.
(B) In-kind contributions.--The non-Federal share
may be provided in the form of in-kind contributions of
materials or services.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2016 through 2020, to remain available until expended.
Subtitle D--Weatherization Enhancement and Local Energy Efficiency
Investment and Accountability
SEC. 3031. FINDINGS.
Congress finds that--
(1) the State energy program established under part D of
title III of the Energy Policy and Conservation Act (42 U.S.C.
6321 et seq.) (referred to in this section as ``SEP'') and the
Weatherization Assistance Program for Low-Income Persons
established under part A of title IV of the Energy Conservation
and Production Act (42 U.S.C. 6861 et seq.) (referred to in
this section as ``WAP'') have proven to be beneficial, long-
term partnerships among Federal, State, and local partners;
(2) the SEP and the WAP have been reauthorized on a
bipartisan basis over many years to address changing national,
regional, and State circumstances and needs, especially
through--
(A) the Energy Policy and Conservation Act (42
U.S.C. 6201 et seq.);
(B) the Energy Conservation and Production Act (42
U.S.C. 6801 et seq.);
(C) the State Energy Efficiency Programs
Improvement Act of 1990 (Public Law 101-440; 104 Stat.
1006);
(D) the Energy Policy Act of 1992 (42 U.S.C. 13201
et seq.);
(E) the Energy Policy Act of 2005 (42 U.S.C. 15801
et seq.); and
(F) the Energy Independence and Security Act of
2007 (42 U.S.C. 17001 et seq.);
(3) the SEP, also known as the ``State energy conservation
program''--
(A) was first created in 1975 to implement a State-
based, national program in support of energy
efficiency, renewable energy, economic development,
energy emergency preparedness, and energy policy; and
(B) has come to operate in every sector of the
economy in support of the private sector to improve
productivity and has dramatically reduced the cost of
government through energy savings at the State and
local levels;
(4) Federal laboratory studies have concluded that, for
every Federal dollar invested through the SEP, more than $7 is
saved in energy costs and almost $11 in non-Federal funds is
leveraged;
(5) the WAP--
(A) was first created in 1976 to assist low-income
families in response to the first oil embargo;
(B) has become the largest residential energy
conservation program in the United States, with more
than 7,100,000 homes weatherized since the WAP was
created;
(C) saves an estimated 35 percent of consumption in
the typical weatherized home, yielding average annual
savings of $437 per year in home energy costs;
(D) has created thousands of jobs in both the
construction sector and in the supply chain of
materials suppliers, vendors, and manufacturers who
supply the WAP;
(E) returns $2.51 in energy savings for every
Federal dollar spent in energy and nonenergy benefits
over the life of weatherized homes;
(F) serves as a foundation for residential energy
efficiency retrofit standards, technical skills, and
workforce training for the emerging broader market and
reduces residential and power plant emissions of carbon
dioxide by 2.65 metric tons each year per home; and
(G) has decreased national energy consumption by
the equivalent of 24,100,000 barrels of oil annually;
(6) the WAP can be enhanced with the addition of a targeted
portion of the Federal funds through an innovative program that
supports projects performed by qualified nonprofit
organizations that have a demonstrated capacity to build,
renovate, repair, or improve the energy efficiency of a
significant number of low-income homes, building on the success
of the existing program without replacing the existing WAP
network or creating a separate delivery mechanism for basic WAP
services;
(7) the WAP has increased energy efficiency opportunities
by promoting new, competitive public-private sector models of
retrofitting low-income homes through new Federal partnerships;
(8) improved monitoring and reporting of the work product
of the WAP has yielded benefits, and expanding independent
verification of efficiency work will support the long-term
goals of the WAP;
(9) reports of the Government Accountability Office in
2011, the Inspector General of the Department, and State
auditors have identified State-level deficiencies in monitoring
efforts that can be addressed in a manner that will ensure that
WAP funds are used more effectively;
(10) through the history of the WAP, the WAP has evolved
with improvements in efficiency technology, including, in the
1990s, many States adopting advanced home energy audits, which
has led to great returns on investment; and
(11) as the home energy efficiency industry has become more
performance-based, the WAP should continue to use those
advances in technology and the professional workforce.
SEC. 3032. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.
Section 422 of the Energy Conservation and Production Act (42
U.S.C. 6872) is amended by striking ``appropriated--'' and all that
follows through the period at the end and inserting ``appropriated
$450,000,000 for each of fiscal years 2016 through 2020.''.
SEC. 3033. GRANTS FOR NEW, SELF-SUSTAINING LOW-INCOME, SINGLE-FAMILY,
AND MULTIFAMILY HOUSING ENERGY RETROFIT MODEL PROGRAMS TO
ELIGIBLE MULTI-STATE HOUSING AND ENERGY NONPROFIT
ORGANIZATIONS.
The Energy Conservation and Production Act is amended by inserting
after section 414B (42 U.S.C. 6864b) the following:
``SEC. 414C. GRANTS FOR NEW, SELF-SUSTAINING LOW-INCOME, SINGLE-FAMILY,
AND MULTIFAMILY HOUSING ENERGY RETROFIT MODEL PROGRAMS TO
ELIGIBLE MULTI-STATE HOUSING AND ENERGY NONPROFIT
ORGANIZATIONS.
``(a) Purposes.--The purposes of this section are--
``(1) to expand the number of low-income, single-family and
multifamily homes that receive energy efficiency retrofits;
``(2) to promote innovation and new models of retrofitting
low-income homes through new Federal partnerships with covered
organizations that leverage substantial donations, donated
materials, volunteer labor, homeowner labor equity, and other
private sector resources;
``(3) to assist the covered organizations in demonstrating,
evaluating, improving, and replicating widely the model low-
income energy retrofit programs of the covered organizations;
and
``(4) to ensure that the covered organizations make the
energy retrofit programs of the covered organizations self-
sustaining by the time grant funds have been expended.
``(b) Definitions.--In this section:
``(1) Covered organization.--The term `covered
organization' means an organization that--
``(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under 501(a) of that Code; and
``(B) has an established record of constructing,
renovating, repairing, or making energy efficient a
total of not less than 250 owner-occupied, single-
family or multifamily homes per year for low-income
households, either directly or through affiliates,
chapters, or other direct partners (using the most
recent year for which data are available).
``(2) Low-income.--The term `low-income' means an income
level that is not more than 200 percent of the poverty level
(as determined in accordance with criteria established by the
Director of the Office of Management and Budget) applicable to
a family of the size involved, except that the Secretary may
establish a higher or lower level if the Secretary determines
that a higher or lower level is necessary to carry out this
section.
``(3) Weatherization assistance program for low-income
persons.--The term `Weatherization Assistance Program for Low-
Income Persons' means the program established under this part
(including part 440 of title 10, Code of Federal Regulations,
or successor regulations).
``(c) Competitive Grant Program.--The Secretary shall make grants
to covered organizations through a national competitive process for use
in accordance with this section.
``(d) Award Factors.--In making grants under this section, the
Secretary shall consider--
``(1) the number of low-income homes the applicant--
``(A) has built, renovated, repaired, or made more
energy efficient as of the date of the application; and
``(B) can reasonably be projected to build,
renovate, repair, or make energy efficient during the
10-year period beginning on the date of the
application;
``(2) the qualifications, experience, and past performance
of the applicant, including experience successfully managing
and administering Federal funds;
``(3) the number and diversity of States and climates in
which the applicant works as of the date of the application;
``(4) the amount of non-Federal funds, donated or
discounted materials, discounted or volunteer skilled labor,
volunteer unskilled labor, homeowner labor equity, and other
resources the applicant will provide;
``(5) the extent to which the applicant could successfully
replicate the energy retrofit program of the applicant and
sustain the program after the grant funds have been expended;
``(6) regional diversity;
``(7) urban, suburban, and rural localities; and
``(8) such other factors as the Secretary determines to be
appropriate.
``(e) Applications.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary shall request
proposals from covered organizations.
``(2) Administration.--To be eligible to receive a grant
under this section, an applicant shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
``(3) Awards.--Not later than 90 days after the date of
issuance of a request for proposals, the Secretary shall award
grants under this section.
``(f) Eligible Uses of Grant Funds.--A grant under this section may
be used for--
``(1) energy efficiency audits, cost-effective retrofit,
and related activities in different climatic regions of the
United States;
``(2) energy efficiency materials and supplies;
``(3) organizational capacity--
``(A) to significantly increase the number of
energy retrofits;
``(B) to replicate an energy retrofit program in
other States; and
``(C) to ensure that the program is self-sustaining
after the Federal grant funds are expended;
``(4) energy efficiency, audit and retrofit training, and
ongoing technical assistance;
``(5) information to homeowners on proper maintenance and
energy savings behaviors;
``(6) quality control and improvement;
``(7) data collection, measurement, and verification;
``(8) program monitoring, oversight, evaluation, and
reporting;
``(9) management and administration (up to a maximum of 10
percent of the total grant);
``(10) labor and training activities; and
``(11) such other activities as the Secretary determines to
be appropriate.
``(g) Maximum Amount.--
``(1) In general.--The amount of a grant provided under
this section shall not exceed--
``(A) if the amount made available to carry out
this section for a fiscal year is $225,000,000 or more,
$5,000,000; and
``(B) if the amount made available to carry out
this section for a fiscal year is less than
$225,000,000, $1,500,000.
``(2) Technical and training assistance.--The total amount
of a grant provided under this section shall be reduced by the
cost of any technical and training assistance provided by the
Secretary that relates to the grant.
``(h) Guidelines.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary shall issue guidelines
to implement the grant program established under this section.
``(2) Administration.--The guidelines--
``(A) shall not apply to the Weatherization
Assistance Program for Low-Income Persons, in whole or
major part; but
``(B) may rely on applicable provisions of law
governing the Weatherization Assistance Program for
Low-Income Persons to establish--
``(i) standards for allowable expenditures;
``(ii) a minimum savings-to-investment
ratio;
``(iii) standards--
``(I) to carry out training
programs;
``(II) to conduct energy audits and
program activities;
``(III) to provide technical
assistance;
``(IV) to monitor program
activities; and
``(V) to verify energy and cost
savings;
``(iv) liability insurance requirements;
and
``(v) recordkeeping requirements, which
shall include reporting to the Office of
Weatherization and Intergovernmental Programs
of the Department of Energy applicable data on
each home retrofitted.
``(i) Review and Evaluation.--The Secretary shall review and
evaluate the performance of any covered organization that receives a
grant under this section (which may include an audit), as determined by
the Secretary.
``(j) Compliance With State and Local Law.--Nothing in this section
or any program carried out using a grant provided under this section
supersedes or otherwise affects any State or local law, to the extent
that the State or local law contains a requirement that is more
stringent than the applicable requirement of this section.
``(k) Annual Reports.--The Secretary shall submit to Congress
annual reports that provide--
``(1) findings;
``(2) a description of energy and cost savings achieved and
actions taken under this section; and
``(3) any recommendations for further action.
``(l) Funding.--Of the amount of funds that are made available to
carry out the Weatherization Assistance Program for each of fiscal
years 2016 through 2020 under section 422, the Secretary shall use to
carry out this section for each of fiscal years 2016 through 2020--
``(1) 2 percent of the amount if the amount is less than
$225,000,000;
``(2) 5 percent of the amount if the amount is $225,000,000
or more but less than $260,000,000;
``(3) 10 percent of the amount if the amount is
$260,000,000 or more but less than $400,000,000; and
``(4) 20 percent of the amount if the amount is
$400,000,000 or more.''.
SEC. 3034. STANDARDS PROGRAM.
Section 415 of the Energy Conservation and Production Act (42
U.S.C. 6865) is amended by adding at the end the following:
``(f) Standards Program.--
``(1) Contractor qualification.--Effective beginning
January 1, 2016, to be eligible to carry out weatherization
using funds made available under this part, a contractor shall
be selected through a competitive bidding process and be--
``(A) accredited by the Building Performance
Institute;
``(B) an Energy Smart Home Performance Team
accredited under the Residential Energy Services
Network; or
``(C) accredited by an equivalent accreditation or
program accreditation-based State certification program
approved by the Secretary.
``(2) Grants for energy retrofit model programs.--
``(A) In general.--To be eligible to receive a
grant under section 414C, a covered organization (as
defined in section 414C(b)) shall use a crew chief
who--
``(i) is certified or accredited in
accordance with paragraph (1); and
``(ii) supervises the work performed with
grant funds.
``(B) Volunteer labor.--A volunteer who performs
work for a covered organization that receives a grant
under section 414C shall not be required to be
certified under this subsection if the volunteer is not
directly installing or repairing mechanical equipment
or other items that require skilled labor.
``(C) Training.--The Secretary shall use training
and technical assistance funds available to the
Secretary to assist covered organizations under section
414C in providing training to obtain certification
required under this subsection, including provisional
or temporary certification.
``(3) Minimum efficiency standards.--Effective beginning
October 1, 2016, the Secretary shall ensure that--
``(A) each retrofit for which weatherization
assistance is provided under this part meets minimum
efficiency and quality of work standards established by
the Secretary after weatherization of a dwelling unit;
``(B) at least 10 percent of the dwelling units are
randomly inspected by a third party accredited under
this subsection to ensure compliance with the minimum
efficiency and quality of work standards established
under subparagraph (A); and
``(C) the standards established under this
subsection meet or exceed the industry standards for
home performance work that are in effect on the date of
enactment of this subsection, as determined by the
Secretary.''.
SEC. 3035. REAUTHORIZATION OF STATE ENERGY PROGRAM.
Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C.
6325(f)) is amended by striking ``$125,000,000 for each of fiscal years
2007 through 2012'' and inserting ``$75,000,000 for each of fiscal
years 2016 through 2020''.
Subtitle E--Utility Energy Service Contracts Improvement
SEC. 3041. FINDINGS.
Congress finds that--
(1) the Federal Government is the largest consumer of
energy in the United States;
(2) Federal agencies are expected to meet, by law,
Executive order, and mandate, stringent energy efficiency and
conservation targets;
(3) the utility energy service contract (referred to in
this section as ``UESC'') was developed to provide Federal
agencies an effective means to implement energy efficiency,
renewable energy and water efficiency projects, and has been
used successfully to invest nearly $2,700,000,000 in property
at Federal facilities;
(4) the General Services Administration, which manages more
than 9,600 Federal properties and is the lead agency for
procuring utility services for the Federal Government, has
determined that UESCs may extend beyond a 10-year period under
the law;
(5) the Federal Energy Management Program, which oversees
the UESC program and is a principal office guiding agencies to
use funding more effectively in meeting Federal and agency-
specific energy and resource management objectives, has
determined that UESCs may extend beyond a 10-year period under
the law;
(6) extensive precedent exists for Federal agencies to
contract for energy saving services using contracts with term
limits of more than 10 years but not to exceed 25 years;
(7) a number of Federal agencies, contrary to congressional
intent, have sought to limit UESC term limits to periods of
less than 10 years; and
(8) greater flexibility with UESCs will help reduce the
operational cost of Federal agencies, ultimately saving money
for taxpayers.
SEC. 3042. UTILITY ENERGY SERVICE CONTRACTS.
Part 3 of title V of the National Energy Conservation Policy Act
(as amended by section 2151) is amended by adding after section 554 the
following:
``SEC. 555. UTILITY ENERGY SERVICE CONTRACTS.
``(a) In General.--Each Federal agency may use, to the maximum
extent practicable, measures provided by law to meet energy efficiency
and conservation mandates and laws, including through utility energy
service contracts.
``(b) Contract Period.--The term of a utility energy service
contract entered into by a Federal agency may have a contract period
that extends beyond 10 years, but not to exceed 25 years.
``(c) Requirements.--The conditions of a utility energy service
contract entered into by a Federal agency shall include requirements
for measurement, verification, and performance assurances or guarantees
of the savings.''.
Subtitle F--State Residential Building Energy Efficiency Loan Pilot
Program
SEC. 3051. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES LOAN
PILOT PROGRAM.
(a) Loans for Residential Building Energy Efficiency Upgrades.--
Part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.) is amended by adding at the end the following:
``SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES.
``(a) Definitions.--In this section:
``(1) Consumer-friendly.--The term `consumer-friendly',
with respect to a loan repayment approach, means a loan
repayment approach that--
``(A) emphasizes convenience for customers;
``(B) is of low cost to consumers; and
``(C) emphasizes simplicity and ease of use for
consumers in the billing process.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State or territory of the United States;
and
``(B) a tribal organization (as defined in section
4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)).
``(3) Energy advisor program.--
``(A) In general.--The term `energy advisor
program' means any program to provide to owners or
residents of residential buildings advice, information,
and support in the identification, prioritization, and
implementation of energy efficiency and energy savings
measures.
``(B) Inclusions.--The term `energy advisor
program' includes a program that provides--
``(i) interpretation of energy audit
reports;
``(ii) assistance in the prioritization of
improvements;
``(iii) assistance in finding qualified
contractors;
``(iv) assistance in contractor bid
reviews;
``(v) education on energy conservation and
energy efficiency;
``(vi) explanations of available incentives
and tax credits;
``(vii) assistance in completion of rebate
and incentive paperwork; and
``(viii) any other similar type of support.
``(4) Energy efficiency.--The term `energy efficiency'
means a decrease in homeowner or residential tenant consumption
of energy (including electricity and thermal energy) that is
achieved without reducing the quality of energy services
through--
``(A) a measure or program that targets customer
behavior;
``(B) equipment or energy systems;
``(C) a device; or
``(D) other material.
``(5) Energy efficiency upgrade.--
``(A) In general.--The term `energy efficiency
upgrade' means any project or activity--
``(i) the primary purpose of which is
increasing energy efficiency; and
``(ii) that is carried out on a residential
building.
``(B) Inclusions.--The term `energy efficiency
upgrade' includes the installation or improvement of a
renewable energy facility for heating or electricity
generation serving a residential building carried out
in conjunction with an energy efficiency project or
activity.
``(6) Program entity.--The term `program entity' means a
local government, utility, or other entity that carries out a
financing program under subsection (e)(2)(A) pursuant to a
contract or other agreement with an eligible entity.
``(7) Recipient household.--The term `recipient household'
means the owner or tenant of a residential building who
receives financing under this section for an energy efficiency
upgrade of the residential building.
``(8) Residential building.--
``(A) In general.--The term `residential building'
means a building used for residential purposes.
``(B) Inclusions.--The term `residential building'
includes--
``(i) a single-family residence;
``(ii) a multifamily residence composed not
more than 4 units; and
``(iii) a mixed-use building that includes
not more than 4 residential units.
``(b) Establishment of Program.--
``(1) In general.--The Secretary shall establish a program
under this part under which the Secretary shall make available
to eligible entities loans for the purpose of establishing or
expanding programs that provide to recipient households
financing for energy efficiency upgrades of residential
buildings.
``(2) Consultation.--In establishing the program under
paragraph (1), the Secretary shall consult, as the Secretary
determines to be appropriate, with stakeholders and the public.
``(3) No requirement to participate.--No eligible entity
shall be required to participate in any manner in the program
established under paragraph (1).
``(4) Deadlines.--The Secretary shall--
``(A) not later than 1 year after the date of
enactment of this section, implement the program
established under paragraph (1) (including soliciting
applications from eligible entities in accordance with
subsection (c)); and
``(B) not later than 2 years after the date of
enactment of this section, disburse the initial loans
provided under this section.
``(c) Applications.--
``(1) In general.--To be eligible to receive a loan under
this section, an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
``(2) Selection date.--Not later than 21 months after the
date of enactment of this section, the Secretary shall select
eligible entities to receive the initial loans provided under
this section, in accordance with the requirements described in
paragraph (3).
``(3) Requirements.--In selecting eligible entities to
receive loans under this section, the Secretary shall--
``(A) to the maximum extent practicable, ensure--
``(i) that both innovative and established
approaches to the challenges of financing
energy efficiency upgrades are supported;
``(ii) that energy efficiency upgrades are
conducted and validated to comply with best
practices for work quality, as determined by
the Secretary;
``(iii) regional diversity among eligible
entities that receive the loans, including
participation by rural States and small States;
``(iv) significant participation by
families with income levels at or below the
median income level for the applicable
geographical region, as determined by the
Secretary; and
``(v) the incorporation of an energy
advisor program by, as applicable--
``(I) eligible entities; or
``(II) program entities;
``(B) evaluate applications based primarily on--
``(i) the projected reduction in energy
use, as determined in accordance with such
specific and commonly available methodology as
the Secretary shall establish, by regulation;
``(ii) the creditworthiness of the eligible
entity; and
``(iii) the incorporation of measures for
making the loan repayment system for recipient
households as consumer-friendly as practicable;
``(C) evaluate applications based secondarily on--
``(i) the extent to which the proposed
financing program of the eligible entity
incorporates best practices for such a program,
as determined by the Secretary;
``(ii)(I) whether the eligible entity has
created a plan for evaluating the effectiveness
of the proposed financing program; and
``(II) whether that plan includes--
``(aa) a robust strategy for
collecting, managing, and analyzing
data, as well as making the data
available to the public; and
``(bb) experimental studies, which
may include investigations of how human
behavior impacts the effectiveness of
efficiency improvements;
``(iii) the extent to which Federal funds
are matched by funding from State, local,
philanthropic, private sector, and other
sources;
``(iv) the extent to which the proposed
financing program will be coordinated and
marketed with other existing or planned energy
efficiency or energy conservation programs
administered by--
``(I) utilities and rural
cooperatives;
``(II) State, tribal, territorial,
or local governments; or
``(III) community development
financial institutions; and
``(v) such other factors as the Secretary
determines to be appropriate; and
``(D) not provide an advantage or disadvantage to
applications that include renewable energy in the
program.
``(d) Administrative Provisions.--
``(1) Term.--The Secretary shall establish terms for loans
provided to eligible entities under this section--
``(A) in a manner that--
``(i) provides for a high degree of cost
recovery; and
``(ii) ensures that, with respect to all
loans provided to or by eligible entities under
this section, the loans are competitive with,
or superior to, other forms of financing for
similar purposes; and
``(B) subject to the condition that the term of a
loan provided to an eligible entity under this section
shall not exceed 35 years.
``(2) Interest rates.--
``(A) In general.--Subject to subparagraph (B), the
Secretary, at the discretion of the Secretary, shall
charge interest on a loan provided to an eligible
entity under this section at a fixed rate equal, or
approximately equal, to the interest rate charged on
Treasury securities of comparable maturity.
``(B) Leveraged loans.--The interest rate and other
terms of the loans provided to eligible entities under
this section shall be established in a manner that
ensures that the total amount of the loans is equal to
not less than 20 times, and not more than 50 times, an
amount equivalent to 80 percent of the amount
appropriated for administrative and general financial
support costs pursuant to subsection (g)(2).
``(3) No penalty on early repayment.--The Secretary shall
not assess any penalty for early repayment by an eligible
entity of a loan provided under this section.
``(4) Return of unused portion.--As a condition of receipt
of a loan under this section, an eligible entity shall agree to
return to the general fund of the Treasury any portion of the
loan amount that is unused by the eligible entity within a
reasonable period after the date of receipt of the loan, as
determined by the Secretary.
``(e) Use of Funds.--
``(1) In general.--An eligible entity shall use a loan
provided under this section to establish or expand 1 or more
financing programs--
``(A) the purpose of which is to enable recipient
households to undertake energy efficiency upgrades of
residential buildings;
``(B) that may, at the sole discretion of the
eligible entity, require an outlay of capital by
recipient households in accordance with the goals of
the program under this section; and
``(C) that incorporate a consumer-friendly loan
repayment approach.
``(2) Structure of financing program.--A financing program
of an eligible entity may--
``(A) consist--
``(i) primarily or entirely of a financing
program administered by--
``(I) the applicable State; or
``(II) a program entity; or
``(ii) of a combination of programs
described in clause (i);
``(B) rely on financing provided by--
``(i) the eligible entity; or
``(ii) a third party, acting through the
eligible entity; and
``(C) include a provision pursuant to which a
recipient household shall agree to return to the
eligible entity any portion of the assistance that is
unused by the recipient household within a reasonable
period after the date of receipt of the assistance, as
determined by the eligible entity.
``(3) Form of assistance.--Assistance from an eligible
entity under this subsection may be provided in any form, or in
accordance with any program, authorized by Federal law
(including regulations), including in the form of--
``(A) a revolving loan fund;
``(B) a credit enhancement structure designed to
mitigate the effects of default; or
``(C) a program that--
``(i) adopts any other approach for
providing financing for energy efficiency
upgrades producing significant energy
efficiency gains; and
``(ii) incorporates measures for making the
loan repayment system for recipient households
as consumer-friendly as practicable.
``(4) Scope of assistance.--Assistance provided by an
eligible entity under this subsection may be used to pay for
costs associated with carrying out an energy efficiency
upgrade, including materials and labor.
``(5) Additional assistance.--In addition to the amount of
the loan provided to an eligible entity by the Secretary under
subsection (b), the eligible entity or program entity, as
applicable, may provide to recipient households such assistance
under this subsection as the eligible entity or program entity
considers to be appropriate from any other funds of the
eligible entity or program entity, including funds provided to
the eligible entity by the Secretary for administrative costs
pursuant to this section.
``(6) Limitations.--
``(A) Interest rates.--
``(i) Interest charged by eligible
entities.--The interest rate charged by an
eligible entity on assistance provided under
this subsection--
``(I) shall be fixed; and
``(II) shall not exceed the
interest rate paid by the eligible
entity to the Secretary under
subsection (d)(2).
``(ii) Interest charged by program
entities.--A program entity that receives
funding from an eligible entity under this
subsection for the purpose of capitalizing a
residential energy efficiency financing program
may charge interest on any loan provided by the
program entity at a fixed rate that is as low
as practicable, but not more than 5 percent
more than the applicable interest rate paid by
the eligible entity to the Secretary under
subsection (d)(2).
``(B) No penalty on early repayment.--An eligible
entity or program entity, as applicable, shall not
assess any penalty for early repayment by any recipient
household to the eligible entity or program entity, as
applicable.
``(f) Reports.--
``(1) Eligible entities.--
``(A) In general.--Not later than 2 years after the
date of receipt of the loan, and annually thereafter
for the term of the loan, an eligible entity that
receives a loan under this section shall submit to the
Secretary a report describing the performance of each
program and activity carried out using the loan,
including anonymized loan performance data.
``(B) Requirements.--The Secretary, in consultation
with eligible entities and other stakeholders (such as
lending institutions and the real estate industry),
shall establish such requirements for the reports under
this paragraph as the Secretary determines to be
appropriate--
``(i) to ensure that the reports are clear,
consistent, and straightforward; and
``(ii) taking into account the reporting
requirements for similar programs in which the
eligible entities are participating, if any.
``(2) Secretary.--The Secretary shall submit to Congress
and make available to the public--
``(A) not less frequently than once each year, a
report describing the performance of the program under
this section, including a synthesis and analysis of the
information provided in the reports submitted to the
Secretary under paragraph (1)(A); and
``(B) on termination of the program under this
section, an assessment of the success of, and education
provided by, the measures carried out by eligible
entities during the term of the program.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $37,500,000 for energy advisor programs;
``(2) $25,000,000 for administrative and general financial
support costs to the Secretary of carrying out this section;
and
``(3) $37,500,000 for administrative costs to States in
carrying out this section.''.
(b) Reorganization.--
(1) In general.--Part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
(A) by redesignating sections 362, 363, 364, 365,
and 366 as sections 364, 365, 366, 363, and 362,
respectively, and moving the sections so as to appear
in numerical order;
(B) in section 362 (as so redesignated)--
(i) in paragraph (3)(B)(i), by striking
``section 367, and'' and inserting ``section
367 (as in effect on the day before the date of
enactment of the State Energy Efficiency
Programs Improvement Act of 1990 (42 U.S.C.
6201 note; Public Law 101-440)); and''; and
(ii) in each of paragraphs (4) and (6), by
striking ``section 365(e)(1)'' each place it
appears and inserting ``section 363(e)(1)'';
(C) in section 363 (as so redesignated)--
(i) in subsection (b), by striking ``the
provisions of sections 362 and 364 and
subsection (a) of section 363'' and inserting
``sections 364, 365(a), and 366''; and
(ii) in subsection (g)(1)(A), in the second
sentence, by striking ``section 362'' and
inserting ``section 364''; and
(D) in section 365 (as so redesignated)--
(i) in subsection (a)--
(I) in paragraph (1), by striking
``section 362,'' and inserting
``section 364;''; and
(II) in paragraph (2), by striking
``section 362(b) or (e)'' and inserting
``subsection (b) or (e) of section
364''; and
(ii) in subsection (b)(2), in the matter
preceding subparagraph (A), by striking
``section 362(b) or (e)'' and inserting
``subsection (b) or (e) of section 364''.
(2) Conforming amendments.--Section 391 of the Energy
Policy and Conservation Act (42 U.S.C. 6371) is amended--
(A) in paragraph (2)(M), by striking ``section
365(e)(2)'' and inserting ``section 363(e)(2)''; and
(B) in paragraph (10), by striking ``section 362 of
this Act'' and inserting ``section 364''.
(3) Clerical amendment.--The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. 6201 note; Public
Law 94-163) is amended by striking the items relating to part D
of title III and inserting the following:
``Part D--State Energy Conservation Programs
``Sec. 361. Findings and purpose.
``Sec. 362. Definitions.
``Sec. 363. General provisions.
``Sec. 364. State energy conservation plans.
``Sec. 365. Federal assistance to States.
``Sec. 366. State energy efficiency goals.
``Sec. 367. Loans for residential building energy efficiency
upgrades.''.
Subtitle G--Smart Energy and Water Efficiency
SEC. 3061. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.
Subtitle A of title IX of the Energy Policy Act of 2005 (42 U.S.C.
16191 et seq.) is amended by adding at the end the following:
``SEC. 918. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a utility;
``(B) a municipality;
``(C) a water district;
``(D) an Indian tribe or Alaska Native village; and
``(E) any other authority that provides water,
wastewater, or water reuse services.
``(2) Smart energy and water efficiency pilot program.--The
term `smart energy and water efficiency pilot program' or
`pilot program' means the pilot program established under
subsection (b).
``(b) Smart Energy and Water Efficiency Pilot Program.--
``(1) In general.--The Secretary shall establish and carry
out a smart energy and water efficiency pilot program in
accordance with this section.
``(2) Purpose.--The purpose of the smart energy and water
efficiency pilot program is to award grants to eligible
entities to demonstrate unique, advanced, or innovative
technology-based solutions that will--
``(A) increase the energy efficiency of water,
wastewater, and water reuse systems;
``(B) improve energy efficiency of water,
wastewater, and water reuse systems to help communities
across the United States make measurable progress in
conserving water, saving energy, and reducing costs;
``(C) support the implementation of innovative and
unique processes and the installation of established
advanced automated systems that provide real-time data
on energy and water; and
``(D) improve energy-water conservation and quality
and predictive maintenance through technologies that
utilize internet connected technologies, including
sensors, intelligent gateways, and security embedded in
hardware.
``(3) Project selection.--
``(A) In general.--The Secretary shall make
competitive, merit-reviewed grants under the pilot
program to not less than 3, but not more than 5,
eligible entities.
``(B) Selection criteria.--In selecting an eligible
entity to receive a grant under the pilot program, the
Secretary shall consider--
``(i) energy and cost savings;
``(ii) the uniqueness, commercial
viability, and reliability of the technology to
be used;
``(iii) the degree to which the project
integrates next-generation sensors software,
analytics, and management tools;
``(iv) the anticipated cost-effectiveness
of the pilot project through measurable energy
efficiency savings, water savings or reuse, and
infrastructure costs averted;
``(v) whether the technology can be
deployed in a variety of geographic regions and
the degree to which the technology can be
implemented in a wide range of applications
ranging in scale from small towns to large
cities, including tribal communities;
``(vi) whether the technology has been
successfully deployed elsewhere;
``(vii) whether the technology was sourced
from a manufacturer based in the United States;
and
``(viii) whether the project will be
completed in 5 years or less.
``(C) Applications.--
``(i) In general.--Subject to clause (ii),
an eligible entity seeking a grant under the
pilot program shall submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary
determines to be necessary.
``(ii) Contents.--An application under
clause (i) shall, at a minimum, include--
``(I) a description of the project;
``(II) a description of the
technology to be used in the project;
``(III) the anticipated results,
including energy and water savings, of
the project;
``(IV) a comprehensive budget for
the project;
``(V) the names of the project lead
organization and any partners;
``(VI) the number of users to be
served by the project;
``(VII) a description of the ways
in which the proposal would meet
performance measures established by the
Secretary; and
``(VIII) any other information that
the Secretary determines to be
necessary to complete the review and
selection of a grant recipient.
``(4) Administration.--
``(A) In general.--Not later than 300 days after
the date of enactment of this section, the Secretary
shall select grant recipients under this section.
``(B) Evaluations.--
``(i) Annual evaluations.--The Secretary
shall annually carry out an evaluation of each
project for which a grant is provided under
this section that meets performance measures
and benchmarks developed by the Secretary,
consistent with the purposes of this section.
``(ii) Requirements.--Consistent with the
performance measures and benchmarks developed
under clause (i), in carrying out an evaluation
under that clause, the Secretary shall--
``(I) evaluate the progress and
impact of the project; and
``(II) assesses the degree to which
the project is meeting the goals of the
pilot program.
``(C) Technical and policy assistance.--On the
request of a grant recipient, the Secretary shall
provide technical and policy assistance.
``(D) Best practices.--The Secretary shall make
available to the public through the Internet and other
means the Secretary considers to be appropriate--
``(i) a copy of each evaluation carried out
under subparagraph (B); and
``(ii) a description of any best practices
identified by the Secretary as a result of
those evaluations.
``(E) Report to congress.--The Secretary shall
submit to Congress a report containing the results of
each evaluation carried out under subparagraph (B).
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000, to remain available
until expended.''.
Subtitle H--Regional Energy Partnerships
SEC. 3071. DEFINITIONS.
In this subtitle:
(1) Cooperative agreement.--The term ``cooperative
agreement'' has the meaning given the term in sections 6302 and
6305 of title 31, United States Code.
(2) Secretaries.--The term ``Secretaries'' means--
(A) the Secretary, acting through the Assistant
Secretary of the Office of Electricity Delivery and
Energy Reliability in consultation with the Assistant
Secretary of Energy Efficiency and Renewable Energy,
the Assistant Secretary of Fossil Energy, and the
Director of the Office of Nuclear Energy, Science, and
Technology Programs; and
(B) the Secretary of the Interior, acting through
the Assistant Secretary for Land and Minerals
Management in consultation with the Director of the
Bureau of Land Management, the Director of the Bureau
of Ocean Energy Management, the Assistant Secretary for
Indian Affairs, and the Assistant Secretary for Fish
and Wildlife and Parks.
(3) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 3072. REGIONAL ENERGY PARTNERSHIPS.
(a) In General.--The Secretaries shall provide assistance in
accordance with this section for the purpose of developing energy
strategies and plans that help harmonize and promote national,
regional, and State energy goals, including goals for advancing
resilient energy systems to mitigate risks and prepare for emerging
energy challenges.
(b) Technical Assistance.--The Secretaries may provide such
technical assistance to States, political subdivisions of States,
substate regional organizations (including organizations that cross
State boundaries), multistate regional organizations, Indian tribes,
and nonprofit organizations as the Secretaries determine appropriate to
promote--
(1) the development and improvement of regional energy
strategies, where appropriate, and plans that sustain and
promote energy system modernization across the United States;
(2) investment in energy infrastructure, technological
capacity, innovation, and workforce development to keep pace
with the changing energy ecosystem;
(3) structural transformation of the financial, regulatory,
legal, and institutional systems that govern energy planning,
production, and delivery within States and regions; and
(4) public-private partnerships for the implementation of
regional energy strategies and plans.
(c) Cooperative Agreements.--
(1) In general.--The Secretaries may enter into cooperative
agreements with one or more States and Indian tribes, on a
regional basis, to develop and implement strategies and plans
to address the energy challenges of States, Indian tribes, and
regions.
(2) Requirements.--A cooperative agreement entered into
under this subsection shall include provisions covering or
providing--
(A) the purpose and goals of the cooperative
agreement, such as advancing energy efficiency, clean
energy, fuel and supply diversity, energy system
resiliency, economic development, or other goals to
make measurable, significant progress toward specified
metrics and objectives that are agreed to by the States
or Indian tribes and the Secretaries;
(B) the roles and responsibilities of the States or
Indian tribes and the Secretaries for various functions
of the cooperative agreement, including outreach,
communication, resources, and capabilities;
(C) a comprehensive framework for the development
of energy strategies and plans for States, Indian
tribes, or regions;
(D) timeframes with associated metrics and
objectives;
(E) a governance structure to resolve conflicts and
facilitate decisionmaking consistent with underlying
authorities; and
(F) other provisions determined necessary by the
Secretaries, in consultation with the States or Indian
tribes, to achieve the purposes described in paragraph
(1).
(d) Staff.--
(1) In general.--Not later than 30 days after the date of
the entering into a cooperative agreement under subsection (c),
the Secretaries shall, as appropriate, assign or employ
individuals who have expertise in the technical and regulatory
issues relating to the cooperative agreement, including
particular expertise in (as applicable)--
(A) energy systems integration;
(B) renewable energy and energy efficiency;
(C) innovative financing mechanisms;
(D) utility regulatory policy;
(E) modeling and analysis;
(F) facilitation and arbitration;
(G) energy assurance and emergency preparedness;
and
(H) cyber and physical security of energy systems.
(2) Duties.--Each individual assigned to carry out a
cooperative agreement under paragraph (1) shall--
(A) report to a location in the applicable State,
Indian tribe, or region not later than 90 days after
the date of assignment;
(B) be responsible for issues and technical
assistance relating to the cooperative agreement;
(C) participate as part of the team of personnel
working on developing and implementing the applicable
regional energy strategy and plan; and
(D) build capacity within the State, Indian tribe,
or region to continue to implement the goals of this
subtitle after the expiration of the cooperative
agreement.
(e) Comprehensive Framework.--Under a cooperative agreement, a
comprehensive framework shall be developed that identifies
opportunities and actions across various energy sectors and cross-
cutting issue areas, including--
(1) end-use efficiency;
(2) energy supply, including electric generation and fuels;
(3) energy storage and delivery;
(4) transportation;
(5) technical integration, including standards and
interdependencies;
(6) institutional structures;
(7) regulatory policies;
(8) financial incentives; and
(9) market mechanisms.
(f) Awards.--
(1) Definitions.--In this subsection:
(A) Application group.--The term ``application
group'' means a group of States or Indian tribes that
have--
(i) entered into a cooperative agreement,
on a regional basis, with the Secretaries under
subsection (c); and
(ii) submitted an application for an award
under paragraph (2)(A).
(B) Partner state.--The term ``partner State''
means a State or Indian tribe that is part of an
application group.
(2) Applications.--
(A) In general.--Subject to subparagraph (B), an
application group may apply to the Secretaries for
awards under this subsection.
(B) Individual states.--An individual State or
Indian tribe that has entered into a cooperative
agreement with the Secretaries under subsection (c) may
apply to the Secretaries for an award under this
subsection if the State or Indian tribe demonstrates to
the Secretaries the uniqueness of the energy challenges
facing the State or Indian tribe.
(3) Base amount.--Subject to paragraph (4), the Secretaries
shall provide 6 awards under this subsection, with a base
amount of $20,000,000 for each award.
(4) Bonus amount for application groups.--
(A) In general.--Subject to subparagraph (B), the
Secretaries shall increase the amount of an award
provided under this subsection to an application group
for a successful application under paragraph (2)(A) by
the quotient obtained by dividing--
(i) the product obtained by multiplying--
(I) the number of partner States in
the application group; and
(II) $100,000,000; by
(ii) the total number of partner States of
all successful applications under this
subsection.
(B) Maximum amount.--The amount of a bonus
determined under subparagraph (A) shall not exceed an
amount that represents $5,000,000 for each partner
State that is a member of the relevant application
group.
(5) Limitation.--A State or Indian tribe shall not be part
of more than 1 award under this subsection.
(6) Selection criteria.--In selecting applications for
awards under this subsection, the Secretaries shall consider--
(A) existing commitments from States or Indian
tribes, such as memoranda of understanding;
(B) for States that are part of the contiguous 48
States, the number of contiguous States involved that
cover a region;
(C) the diversity of the regions represented by all
applications;
(D) the amount of cost-share or in-kind
contributions from States or Indian tribes;
(E) the scope and focus of regional and State
programs and strategies, with an emphasis on energy
system resiliency and grid modernization, efficiency,
and clean energy;
(F) a management and oversight plan to ensure that
objectives are met;
(G) an outreach plan for the inclusion of
stakeholders in the process for developing and
implementing State or regional energy strategies and
plans;
(H) the inclusion of tribal entities;
(I) plans to fund and sustain activities identified
in regional energy strategies and plans; and
(J) the clarity of roles and responsibilities of
each State and the Secretaries.
(7) Use of awards.--
(A) In general.--Awards provided under this
subsection shall be used to achieve the purpose of this
section, including by--
(i) conducting technical analyses, resource
studies, and energy system baselines;
(ii) convening and providing education to
stakeholders on emerging energy issues;
(iii) building decision support and
planning tools; and
(iv) improving communication between and
participation of stakeholders.
(B) Limitation.--Awards provided under this
subsection shall not be used for--
(i) capitalization of green banks or loan
guarantees; or
(ii) building facilities or funding capital
projects.
SEC. 3073. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry
out this subtitle $250,000,000, to remain available until expended.
(b) Allocation.--Of the amount authorized to be appropriated under
subsection (a)--
(1) $120,000,000 shall be used for the base amount of
awards under section 3072(f)(3);
(2) $100,000,000 shall be used for the bonus amount of
awards under section 3072(f)(4); and
(3) $30,000,000 shall be for the administration of this
subtitle, including--
(A) the assignment of staff under section 3072(d);
and
(B) if the Secretaries determine appropriate, the
sharing of best practices from regional partnerships by
parties to cooperative agreements entered into under
this subtitle.
(c) State Energy Offices.--Funds provided to a State under this
subtitle shall be provided to the office within the State that is
responsible for developing the State energy plan for the State under
part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
(d) Maintenance of Funding.--The funding provided to States under
this subtitle shall supplement (and not supplant) funding provided
under part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
Subtitle I--Energy Productivity Innovation Challenge
SEC. 3081. DEFINITIONS.
In this subtitle:
(1) Energy productivity.--The term ``energy productivity''
means, in the case of a State or Indian tribe, the gross State
or tribal product per British thermal unit of energy consumed
in the State or tribal land of the Indian tribe, respectively.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(3) State.--The term ``State'' has the meaning given the
term in section 3 of the Energy Policy and Conservation Act (42
U.S.C. 6202).
SEC. 3082. PHASE 1: INITIAL ALLOCATION OF GRANTS TO STATES.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary shall issue an invitation to States to
submit plans to participate in an electric and thermal energy
productivity challenge in accordance with this section.
(b) Grants.--
(1) In general.--Subject to section 3085, the Secretary
shall use funds made available under section 3086(b)(1) to
provide an initial allocation of grants to not more than 25
States.
(2) Amount.--The amount of a grant provided to a State
under this section shall be not less than $500,000 nor more
than $1,750,000.
(c) Submission of Plans.--To receive a grant under this section,
not later than 90 days after the date of issuance of the invitation
under subsection (a), a State (in consultation with energy utilities,
regulatory bodies, and others) shall submit to the Secretary an
application to receive the grant by submitting a revised State energy
conservation plan under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322).
(d) Decision by Secretary.--
(1) Basis.--The Secretary shall base the decision of the
Secretary on an application submitted under this section on--
(A) plans for improvement in electric and thermal
energy productivity consistent with this subtitle; and
(B) other factors determined appropriate by the
Secretary, including geographic diversity.
(2) Ranking.--The Secretary shall--
(A) rank revised plans submitted under this section
in order of the greatest to least likely contribution
to improving energy productivity in the State; and
(B) provide grants under this section in accordance
with the ranking and the scale and scope of a plan.
(e) Plan Requirements.--A plan submitted under subsection (c) shall
provide--
(1) a description of the manner in which--
(A) energy savings will be monitored and verified
and energy productivity improvements will be calculated
using inflation-adjusted dollars;
(B) a statewide baseline of energy use and
potential resources for calendar year 2010 will be
established to measure improvements;
(C) the plan will promote achievement of energy
savings and demand reduction goals;
(D) public and private sector investments in energy
efficiency will be leveraged with available Federal
funding; and
(E) the plan will not cause cost-shifting among
utility customer classes or negatively impact low-
income populations; and
(2) an assurance that--
(A) the State energy office required to submit the
plan, the energy utilities in the State participating
in the plan, and the State public service commission
are cooperating and coordinating programs and
activities under this subtitle;
(B) the State is cooperating with local units of
government, Indian tribes, and energy utilities to
expand programs as appropriate; and
(C) grants provided under this subtitle will be
used to supplement and not supplant Federal, State, or
ratepayer-funded programs or activities in existence on
the date of enactment of this Act.
(f) Uses.--A State may use grants provided under this section to
promote--
(1) the expansion of policies and programs that will
advance industrial energy efficiency, waste heat recovery,
combined heat and power, and waste heat-to-power utilization;
(2) the expansion of policies and programs that will
advance energy efficiency construction and retrofits for public
and private commercial buildings (including schools, hospitals,
and residential buildings, including multifamily buildings)
such as through expanded energy service performance contracts,
equivalent utility energy service contracts, zero net-energy
buildings, and improved building energy efficiency codes;
(3) the expansion of residential policies and programs
designed to implement best practice policies and tools for
residential retrofit programs that--
(A) reduce administrative and delivery costs for
energy efficiency projects;
(B) encourage streamlining and automation to
support contractor engagement; and
(C) implement systems that encourage private
investment and market innovation;
(4) the establishment or expansion of incentives in the
electric utility sector to enhance demand response and energy
efficiency, including consideration of additional incentives to
promote the purposes of section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)), such as
appropriate, cost-effective policies regarding rate structures,
grid improvements, behavior change, combined heat and power and
waste heat-to-power incentives, financing of energy efficiency
programs, data use incentives, district heating, and regular
energy audits; and
(5) leadership by example, in which State activities
involving both facilities and vehicle fleets can be a model for
other action to promote energy efficiency and can be expanded
with Federal grants provided under this subtitle.
SEC. 3083. PHASE 2: SUBSEQUENT ALLOCATION OF GRANTS TO STATES.
(a) Reports.--Not later than 18 months after the receipt of grants
under section 3082, each State (in consultation with other parties
described in subsection (b)(3)(F)) that received grants under section
3082 may submit to the Secretary a report that describes--
(1) the performance of the programs and activities carried
out with the grants; and
(2) in consultation with other parties described in
subsection (b)(3)(F), the manner in which additional funds
would be used to carry out programs and activities to promote
the purposes of this subtitle.
(b) Grants.--
(1) In general.--Not later than 180 days after the date of
the receipt of the reports required under subsection (a),
subject to section 3085, the Secretary shall use amounts made
available under section 3086(b)(2) to provide grants to not
more than 6 States to carry out the programs and activities
described in subsection (a)(2).
(2) Amount.--The amount of a grant provided to a State
under this section shall be not more than $15,000,000.
(3) Basis.--The Secretary shall base the decision of the
Secretary to provide grants under this section on--
(A) the performance of the State in the programs
and activities carried out with grants provided under
section 3082;
(B) the potential of the programs and activities
described in subsection (a)(2) to achieve the purposes
of this subtitle;
(C) the desirability of maintaining a total project
portfolio that is geographically and functionally
diverse;
(D) the amount of non-Federal funds that are
leveraged as a result of the grants to ensure that
Federal dollars are leveraged effectively;
(E) plans for continuation of the improvements
after the receipt of grants under this subtitle; and
(F) demonstrated effort by the State to involve
diverse groups, including--
(i) investor-owned, cooperative, and public
power utilities;
(ii) local governments; and
(iii) nonprofit organizations.
SEC. 3084. ALLOCATION OF GRANTS TO INDIAN TRIBES.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary shall invite Indian tribes to submit plans
to participate in an electric and thermal energy productivity challenge
in accordance with this section.
(b) Submission of Plans.--To receive a grant under this section,
not later than 90 days after the date of issuance of the invitation
under subsection (a), an Indian tribe shall submit to the Secretary a
plan to increase electric and thermal energy productivity by the Indian
tribe.
(c) Decision by Secretary.--
(1) In general.--Not later than 90 days after the
submission of plans under subsection (b), the Secretary shall
make a final decision on the allocation of grants under this
section.
(2) Basis.--The Secretary shall base the decision of the
Secretary under paragraph (1) on--
(A) plans for improvement in electric and thermal
energy productivity consistent with this subtitle;
(B) plans for continuation of the improvements
after the receipt of grants under this subtitle; and
(C) other factors determined appropriate by the
Secretary, including--
(i) geographic diversity; and
(ii) size differences among Indian tribes.
(3) Limitation.--An individual Indian tribe shall not
receive more than 20 percent of the total amount available to
carry out this section.
SEC. 3085. ADMINISTRATION.
(a) Independent Evaluation.--To evaluate program performance and
effectiveness under this subtitle, the Secretary shall consult with the
National Research Council regarding requirements for data and
evaluation for recipients of grants under this subtitle.
(b) Coordination With State Energy Conservation Programs.--
(1) In general.--Grants to States under this subtitle shall
be provided through additional funding to carry out State
energy conservation programs under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
(2) Relationship to state energy conservation programs.--
(A) In general.--A grant provided to a State under
this subtitle shall be used to supplement (and not
supplant) funds provided to the State under part D of
title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
(B) Minimum funding.--A grant shall not be provided
to a State for a fiscal year under this subtitle if the
amount of funding provided to all State grantees under
the base formula for the fiscal year under part D of
title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.) is less than $50,000,000.
(c) Voluntary Participation.--The participation of a State in a
challenge established under this subtitle shall be voluntary.
SEC. 3086. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry
out this subtitle $100,000,000 for the period of fiscal years 2016 and
2017.
(b) Allocation.--Of the total amount of funds made available under
subsection (a)--
(1) 30 percent shall be used to provide an initial
allocation of grants to States under section 3082;
(2) 61 percent shall be used to provide a subsequent
allocation of grants to States under section 3083;
(3) 4 percent shall be used to make grants to Indian tribes
under section 3084; and
(4) 5 percent shall be available to the Secretary for the
cost of administration and technical support to carry out this
subtitle.
Subtitle J--Smart Buildings
SEC. 3091. DEFINITIONS.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Federal Smart
Building Program established under subsection (b)(1).
(2) Smart building.--The term ``smart building'' means a
building, or collection of buildings, with an energy system
that--
(A) is flexible and automated;
(B) has extensive operational monitoring and
communication connectivity, allowing remote monitoring
and analysis of all building functions;
(C) takes a systems-based approach in integrating
the overall building operations for control of energy
generation, consumption, and storage;
(D) communicates with utilities and other third-
party commercial entities, if appropriate; and
(E) is cybersecure.
(3) Smart building accelerator.--The term ``smart building
accelerator'' means an initiative that is designed to
demonstrate specific innovative policies and approaches--
(A) with clear goals and a clear timeline; and
(B) that, on successful demonstration, would
accelerate investment in energy efficiency.
(b) Federal Smart Building Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program
to be known as the ``Federal Smart Building Program''--
(A) to implement smart building technology; and
(B) to demonstrate the costs and benefits of smart
buildings.
(2) Selection.--
(A) In general.--The Secretary shall coordinate the
selection of not fewer than 1 building from among each
of several key Federal agencies, as described in
paragraph (4), to compose an appropriately diverse set
of smart buildings based on size, type, and geographic
location.
(B) Inclusion of commercially operated buildings.--
In making selections under subparagraph (A), the
Secretary may include buildings that are owned by the
Federal Government but are commercially operated.
(3) Targets.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall establish targets
for the number of smart buildings to be commissioned and
evaluated by key Federal agencies by 3 years and 6 years after
the date of enactment of this Act.
(4) Federal agency described.--The key Federal agencies
referred to in this subsection shall include buildings operated
by--
(A) the Department of the Army;
(B) the Department of the Navy;
(C) the Department of the Air Force;
(D) the Department;
(E) the Department of the Interior;
(F) the Department of Veterans Affairs; and
(G) the General Services Administration.
(5) Requirement.--In implementing the program, the
Secretary shall leverage existing financing mechanisms
including energy savings performance contracts, utility energy
service contracts, and annual appropriations.
(6) Evaluation.--Using the guidelines of the Federal Energy
Management Program relating to whole-building evaluation,
measurement, and verification, the Secretary shall evaluate the
costs and benefits of the buildings selected under paragraph
(2), including an identification of--
(A) which advanced building technologies--
(i) are most cost-effective; and
(ii) show the most promise for--
(I) increasing building energy
savings;
(II) increasing service performance
to building occupants;
(III) reducing environmental
impacts; and
(IV) establishing cybersecurity;
and
(B) any other information the Secretary determines
to be appropriate.
(7) Awards.--The Secretary may expand awards made under the
Federal Energy Management Program and the Better Building
Challenge to recognize specific agency achievements in
accelerating the adoption of smart building technologies.
(c) Survey of Private Sector Smart Buildings.--
(1) Survey.--The Secretary shall conduct a survey of
privately owned smart buildings throughout the United States,
including commercial buildings, laboratory facilities,
hospitals, multifamily residential buildings, and buildings
owned by nonprofit organizations and institutions of higher
education.
(2) Selection.--From among the smart buildings surveyed
under paragraph (1), the Secretary shall select not fewer than
1 building each from an appropriate range of building sizes,
types, and geographic locations.
(3) Evaluation.--Using the guidelines of the Federal Energy
Management Program relating to whole-building evaluation,
measurement, and verification, the Secretary shall evaluate the
costs and benefits of the buildings selected under paragraph
(2), including an identification of--
(A) which advanced building technologies and
systems--
(i) are most cost-effective; and
(ii) show the most promise for--
(I) increasing building energy
savings;
(II) increasing service performance
to building occupants;
(III) reducing environmental
impacts; and
(IV) establishing cybersecurity;
and
(B) any other information the Secretary determines
to be appropriate.
(d) Leveraging Existing Programs.--
(1) Better building challenge.--As part of the Better
Building Challenge of the Department, the Secretary, in
consultation with major private sector property owners, shall
develop smart building accelerators to demonstrate innovative
policies and approaches that will accelerate the transition to
smart buildings in the public, institutional, and commercial
buildings sectors.
(2) Research and development.--
(A) In general.--The Secretary shall conduct
research and development to address key barriers to the
integration of advanced building technologies and to
accelerate the transition to smart buildings.
(B) Inclusion.--The research and development
conducted under subparagraph (A) shall include research
and development on--
(i) achieving whole-building, systems-level
efficiency through smart system and component
integration;
(ii) improving physical components, such as
sensors and controls, to be adaptive,
anticipatory, and networked;
(iii) reducing the cost of key components
to accelerate the adoption of smart building
technologies;
(iv) data management, including the capture
and analysis of data and the interoperability
of the energy systems;
(v) protecting against cybersecurity
threats and addressing security vulnerabilities
of building systems or equipment;
(vi) business models, including how
business models may limit the adoption of smart
building technologies and how to support
transactive energy;
(vii) integration and application of
combined heat and power systems and energy
storage for resiliency;
(viii) characterization of buildings and
components;
(ix) consumer and utility protections;
(x) continuous management, including the
challenges of managing multiple energy systems
and optimizing systems for disparate
stakeholders; and
(xi) other areas of research and
development, as determined appropriate by the
Secretary.
(e) Report.--Not later than 2 years after the date of enactment of
this Act, and every 2 years thereafter until a total of 3 reports have
been made, the Secretary shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report on--
(1) the establishment of the Federal Smart Building Program
and the evaluation of Federal smart buildings under subsection
(b);
(2) the survey and evaluation of private sector smart
buildings under subsection (c); and
(3) any recommendations of the Secretary to further
accelerate the transition to smart buildings.
Subtitle K--Energy Study
SEC. 3101. ENERGY INFORMATION STUDY.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Secretary shall complete a study, with opportunity for
public comment--
(1) on the impact of--
(A) State and local performance benchmarking and
disclosure policies, and any associated building
efficiency policies, for commercial and multifamily
buildings; and
(B) programs and systems in which utilities provide
aggregated information regarding whole building energy
consumption and usage information to owners of
multitenant commercial, residential, and mixed-use
buildings;
(2) that identifies best practice policy approaches studied
under paragraph (1) that have resulted in the greatest
improvements in building energy efficiency; and
(3) that considers--
(A) compliance rates and the benefits and costs of
the policies and programs on building owners,
utilities, tenants, and other parties;
(B) utility practices, programs, and systems that
provide aggregated energy consumption information to
multitenant building owners, and the impact of public
utility commissions and State privacy laws on those
practices, programs, and systems;
(C) exceptions to compliance in existing laws where
building owners are not able to gather or access whole
building energy information from tenants or utilities;
(D) the treatment of buildings with--
(i) multiple uses;
(ii) uses for which baseline information is
not available; and
(iii) uses that require high levels of
energy intensities, such as data centers,
trading floors, and television studios;
(E) implementation practices, including disclosure
methods and phase-in of compliance;
(F) the safety and security of benchmarking tools
offered by government agencies, and the resiliency of
those tools against cyber attacks; and
(G) international experiences with regard to
building benchmarking and disclosure laws and data
aggregation for multitenant buildings.
(b) Submission to Congress.--At the conclusion of the study, the
Secretary shall submit to Congress a report on the results of the
study.
SEC. 3102. GRANTS TO UTILITIES.
(a) Grants to Utilities.--Based on the results of the research for
the portion of the study described in section 3101(a)(1)(B), and with
criteria developed following public notice and comment, the Secretary
may make competitive awards to utilities, utility regulators, and
utility partners to develop and implement effective and promising
programs to provide aggregated whole building energy consumption
information to multitenant building owners.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2016 through 2020, to remain available until expended.
SEC. 3103. GRANTS TO STATES AND UNITS OF LOCAL GOVERNMENT.
(a) Grants to Utilities.--Based on the results of the research for
the portion of the study described in section 3101(a)(1)(B), and with
criteria developed following public notice and comment, the Secretary
may make competitive awards to States and units of local government to
develop and implement effective and promising benchmarking and
disclosure policies, and any associated building efficiency policies,
for commercial and multifamily buildings.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2016 through 2020, to remain available until expended.
SEC. 3104. INPUT FROM STAKEHOLDERS.
The Secretary shall seek input from stakeholders to maximize the
effectiveness of the actions taken under this subtitle.
SEC. 3105. REPORT.
Not later than 2 years after the date of enactment of this Act, and
every 2 years thereafter, the Secretary shall submit to Congress a
report on the progress made in complying with this subtitle.
Subtitle L--Alternative Fueled Vehicles
SEC. 3111. ALTERNATIVE FUELED VEHICLE FLEETS AND INFRASTRUCTURE.
(a) Utility Incentive Programs.--Section 546(c)(1) of the National
Energy Conservation Policy Act (42 U.S.C. 8256(c)(1)) is amended by
inserting ``(including measures to support the use of alternative
fueled vehicles (as defined in section 400AA(g) of the Energy Policy
and Conservation Act (42 U.S.C. 6374(g))) or the fueling or charging
infrastructure necessary for those vehicles)'' after ``demand''.
(b) Energy Savings Performance Contracts.--
(1) Authority to enter contracts.--Section 801(a)(2)(B) of
the National Energy Conservation Policy Act (42 U.S.C.
8287(a)(2)(B)) is amended in the first sentence by inserting
``or petroleum'' after ``utilities''.
(2) Payment of costs.--Section 802 of the National Energy
Conservation Policy Act (42 U.S.C. 8287a) is amended by
inserting ``petroleum,'' after ``water,''.
(3) Definitions.--Section 804 of the National Energy
Conservation Policy Act (42 U.S.C. 8287c) is amended--
(A) in paragraph (2)--
(i) in subparagraph (C), by striking
``and'' after the semicolon;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(E) a reduction in the use of petroleum through
the use of alternative fueled vehicles or the fueling
or charging infrastructure necessary for alternative
fueled vehicles, including the use of contracts to
support alternative fueled vehicles or
infrastructure.'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking ``or''
after the semicolon;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(C) a measure to support the use of alternative
fueled vehicles or the fueling or charging
infrastructure necessary for alternative fueled
vehicles, including the use of contracts to support
alternative fueled vehicles or infrastructure.'';
(C) by redesignating paragraphs (1), (2), (3), and
(4), as paragraphs (5), (3), (4), and (2),
respectively, and moving so as to appear in numerical
order; and
(D) by inserting before paragraph (2) (as so
redesignated) the following:
``(1) Alternative fueled vehicle.--The term `alternative
fueled vehicle' has the meaning given the term in section
400AA(g) of the Energy Policy and Conservation Act (42 U.S.C.
6374(g)).''.
Subtitle M--Outer Continental Shelf
SEC. 3121. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS
ROYALTY RELIEF.
(a) In General.--Sections 344 and 345 of the Energy Policy Act of
2005 (42 U.S.C. 15904, 15905) are repealed.
(b) Administration.--The Secretary of the Interior shall not be
required to provide for royalty relief in the lease sale terms
beginning with the first lease sale held on or after the date of
enactment of this Act for which a final notice of sale has not been
published.
SEC. 3122. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES
FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 PLANNING
AREAS OF GULF OF MEXICO.
Section 105 of the Gulf of Mexico Energy Security Act of 2006 (43
U.S.C. 1331 note) is amended to read as follows:
``SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES
FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 PLANNING
AREAS OF GULF OF MEXICO.
``Notwithstanding section 9 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1338) and subject to the other provisions of this
section, for each applicable fiscal year, the Secretary of the Treasury
shall deposit--
``(1) 87.5 percent of qualified outer Continental Shelf
revenues in the general fund of the Treasury; and
``(2) 12.5 percent of qualified outer Continental Shelf
revenues in a special account in the Land and Water
Conservation Fund established under section 200302 of title 54,
United States Code, from which the Secretary shall disburse,
without further appropriation, 100 percent to provide financial
assistance to States in accordance with section 200305 of that
title, which shall be considered income to the Land and Water
Conservation Fund for purposes of section 200302 of that
title.''.
Subtitle N--Venting and Flaring of Gas
SEC. 3131. REGULATIONS TO PREVENT OR MINIMIZE VENTING AND FLARING OF
GAS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior shall issue
regulations under this subtitle--
(1) to prevent or minimize the venting and flaring of gas
in oil and gas production operations on Federal land onshore
and offshore in the United States; and
(2) to promote the capture and beneficial use or
reinjection of gas in the operations referred to in paragraph
(1).
(b) Royalties.--A regulation issued under this section shall
include provisions that treat gas that is flared or vented in
operations under a lease under this subtitle as production for which
royalty is required to be paid to the United States.
(c) Limitation on Application to Existing Leases.--Regulations
issued under subsection (a) shall not apply with respect to production
under a lease in effect on the date of enactment of this Act to the
extent such application would constitute a breach of the terms of the
lease by the United States.
SEC. 3132. ASSESSMENT OF VENTING AND FLARING OF GAS IN PRODUCTION
OPERATIONS IN UNITED STATES.
Not later than 18 months after the date of enactment of this Act,
the Comptroller General of the United States shall--
(1) assess the venting and flaring of gas in oil and gas
production operations on Federal land onshore and offshore in
the United States; and
(2) submit to Congress a report on the venting and flaring
of gas in oil and gas production operations on Federal land
onshore and offshore in the United States, including an
estimate of the volume of gas that is vented or flared in such
operations each year.
SEC. 3133. REGULATIONS.
The Secretary of the Interior shall issue regulations that define
the terms ``vent'', ``venting'', ``flare'', and ``flaring'' for
purposes of this subtitle.
Subtitle O--Production Incentive Fee
SEC. 3141. PRODUCTION INCENTIVE FEE.
(a) Establishment.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior (referred
to in this section as the ``Secretary'') shall issue
regulations to establish an annual production incentive fee
with respect to Federal onshore and offshore land that is
subject to a lease for production of oil or natural gas under
which production is not occurring.
(2) Application.--The annual production incentive fee
described in paragraph (1) shall apply with respect to land
that is subject to a lease described in paragraph (1) that is--
(A) in effect on the date on which final
regulations are issued pursuant to this subsection; or
(B) executed after that date.
(b) Amount.--For each acre of land from which oil or natural gas is
produced for less than 90 days in a calendar year, the amount of the
fee shall be--
(1) in the case of onshore land--
(A) for each of the first 3 years of the lease, $4
per acre (in 2015 dollars);
(B) for the fourth year of the lease, $6 per acre
(in 2015 dollars); and
(C) for the fifth year of the lease and each year
thereafter for which the lease is otherwise in effect,
$8 per acre (in 2015 dollars); and
(2) in the case of offshore land--
(A) for each of the third, fourth, and fifth years
of the lease, $4 per acre (in 2015 dollars);
(B) for the sixth year of the lease, $6 per acre
(in 2015 dollars); and
(C) for the seventh year of the lease and each year
thereafter for which the lease is otherwise in effect,
$8 per acre (in 2015 dollars).
(c) Assessment and Collection.--The Secretary shall assess and
collect the fee established under this section.
(d) Deposit.--Amounts received by the Secretary for the fee under
this section shall be reserved for the Secretary for expenditures on
inspection, enforcement, and permitting relating to oil and gas.
(e) Regulations.--The Secretary may issue regulations to prevent
evasion of the fee under this section.
Subtitle P--Reauthorization of Desalination Act
SEC. 3151. REAUTHORIZATION OF DESALINATION ACT.
(a) Definitions.--Section 2 of the Water Desalination Act of 1996
(42 U.S.C. 10301 note; Public Law 104-298) is amended--
(1) by redesignating paragraphs (1), (2), (3), (4), and (5)
as paragraphs (2), (3), (5), (6), and (4), respectively, and
moving the paragraphs so as to appear in numerical order; and
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.''.
(b) Authorization of Research and Studies.--Section 3 of the Water
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is
amended by adding at the end the following:
``(e) Prioritization.--In carrying out this section, the Secretary
of the Interior shall prioritize funding for research--
``(1) to reduce energy consumption and lower the cost of
seawater and brackish water desalination;
``(2) to reduce the environmental impacts of seawater
desalination and develop technology and strategies to minimize
those impacts;
``(3) to improve existing reverse osmosis and membrane
technology;
``(4) to carry out basic and applied research on next
generation desalination technologies, including graphene
membranes, forward osmosis, hybrid membrane-thermal
desalination, improved energy recovery systems, and renewable
energy-powered desalination systems that could significantly
reduce desalination costs; and
``(5) to develop portable or modular desalination units
capable of providing temporary emergency water supplies for
domestic or military deployment purposes.''.
(c) Desalination Demonstration and Development.--Section 4 of the
Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-
298) is amended by adding at the end the following:
``(c) Prioritization.--In carrying out demonstration and
development activities under this section, the Secretary shall
prioritize projects--
``(1) in drought-stricken States and communities;
``(2) in States that have authorized funding for research
and development of desalination technologies and projects; and
``(3) that can reduce reliance on imported water supplies
that have an impact on species listed under the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.).''.
(d) Authorization of Appropriations.--Section 8 of the Water
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is
amended--
(1) in subsection (a), in the first sentence--
(A) by striking ``$5,000,000'' and inserting
``$10,000,000''; and
(B) by striking ``2013'' and inserting ``2020'';
and
(2) in subsection (b), by striking ``for each of fiscal
years 2012 through 2013'' and inserting ``for each of fiscal
years 2016 through 2020''.
(e) Consultation.--Section 9 of the Water Desalination Act of 1996
(42 U.S.C. 10301 note; Public Law 104-298) is amended--
(1) by striking the section designation and heading and all
that follows through ``In carrying out'' in the first sentence
and inserting the following:
``SEC. 9. CONSULTATION AND COORDINATION.
``(a) Consultation.--In carrying out'';
(2) in the second sentence, by striking ``The
authorization'' and inserting the following:
``(c) Other Desalination Programs.--The authorization''; and
(3) by inserting after subsection (a) (as designated by
paragraph (1)) the following:
``(b) Coordination of Federal Desalination Research and
Development.--
``(1) In general.--The White House Office of Science and
Technology Policy shall develop a coordinated strategic plan
that--
``(A) establishes priorities for future Federal
investments in desalination; and
``(B) coordinates the activities of Federal
agencies involved in desalination, including the Bureau
of Reclamation, the National Science Foundation, the
Office of Naval Research of the Department of Defense,
the National Laboratories of the Department of Energy,
the United States Geological Survey, the Environmental
Protection Agency, and the National Oceanic and
Atmospheric Administration.''.
(f) Desalination Project Assistance.--The Water Desalination Act of
1996 (42 U.S.C. 10301 note; Public Law 104-298) is amended by adding at
the end the following:
``SEC. 10. FEASIBILITY STUDY AND DESIGN ASSISTANCE.
``(a) In General.--In order to facilitate the development of water
desalination projects, the Administrator shall develop and implement a
program to provide financial assistance to study the feasibility and
support the design of desalination facilities (including associated
water distribution infrastructure) that provide usable water.
``(b) Feasibility Studies.--
``(1) In general.--The Administrator may provide grant
assistance to a non-Federal project sponsor to evaluate and
determine the feasibility of a public or public-private
desalination project.
``(2) Federal share.--The Federal share for a feasibility
study under paragraph (1) shall not exceed 50 percent of the
cost of the study.
``(3) Criteria for eligibility.--In carrying out this
subsection, the Administrator shall establish criteria to
determine projects eligible for grant funding based on the
ability of the projects to provide regional water supply
benefits, including--
``(A) improving water supply reliability in regions
subject to frequent and severe drought;
``(B) enhancement of public health, safety,
ecosystems, and watershed sustainability;
``(C) preservation of groundwater through reduction
of withdrawals from aquifers;
``(D) offsetting demand for water conveyed from
environmentally sensitive areas outside service area of
the project; and
``(E) mitigation of saltwater intrusion to
aquifers.
``(c) Project Design.--
``(1) In general.--The Administrator may provide grant
assistance to a non-Federal project sponsor for the design of a
public or public-private desalination project.
``(2) Federal share.--The Federal share for project design
under paragraph (1) shall not exceed 25 percent of the cost of
project design of the project.
``(3) Criteria for eligibility.--In carrying out this
subsection, the Administrator shall establish criteria to
determine projects eligible for grant funding, including--
``(A) completion of a feasibility study described
in subsection (b);
``(B) demonstration of technical feasibility and
cost effectiveness;
``(C) completion of all required State and Federal
environmental impact analyses;
``(D) receipt of all necessary local, State, and
Federal permits;
``(E) demonstration of financial capability of non-
Federal project sponsors;
``(F) quantification and net cost of water produced
by the project; and
``(G) identification of users of produced water
supply, including water purchase agreements and other
contractually binding mechanisms.
``(d) Guidance.--Not later than 180 days after the date of
enactment of this section, the Administrator shall publish appropriate
guidance to implement this section.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2016 through 2020, to remain available until expended.
``(f) Report on Desalination Technology.--Not later than 90 days
after the date of enactment of this section, the Secretary of the Navy
shall submit to Congress a report on the application of desalinization
technology for defense and national security purposes to provide
drought relief to areas impacted by sharp declines in water supply.''.
SEC. 3152. PROMOTING WATER EFFICIENCY WITH WATERSENSE.
(a) In General.--There is established within the Environmental
Protection Agency a program, to be known as the ``WaterSense Program'',
to identify and promote water efficient products, buildings,
landscapes, facilities, processes, and services--
(1) to reduce water use;
(2) to reduce the strain on water, wastewater, and
stormwater infrastructure;
(3) to conserve energy used to pump, heat, transport, and
treat water; and
(4) to preserve water resources for future generations
through voluntary labeling of, or other forms of communications
regarding, products, buildings, landscapes, facilities,
processes, and services that meet the highest water efficiency
and performance criteria.
(b) Duties.--The Administrator of the Environmental Protection
Agency (referred to in this section as the ``Administrator'') shall--
(1) establish--
(A) a WaterSense label to be used for certain
items; and
(B) the procedure by which an item may be certified
to display the WaterSense label;
(2) promote WaterSense-labeled products, buildings,
landscapes, facilities, processes, and services in the
marketplace as the preferred technologies and services for--
(A) reducing water use; and
(B) ensuring product and service performance;
(3) work to enhance public awareness of the WaterSense
label through public outreach, education, and other means;
(4) preserve the integrity of the WaterSense label by--
(A) establishing and maintaining performance
criteria so that products, buildings, landscapes,
facilities, processes, and services labeled with the
WaterSense label perform as well as, or better than,
less water-efficient counterparts;
(B) overseeing WaterSense certifications made by
third parties;
(C) conducting reviews of the use of the WaterSense
label in the marketplace and taking corrective action
in any case in which misuse of the label is identified;
and
(D) carrying out such other measures as the
Administrator determines to be appropriate;
(5) at least once every 6 years, review and, if
appropriate, update WaterSense criteria for categories of
products, buildings, landscapes, facilities, processes, and
services;
(6) to the maximum extent practicable, at least annually
estimate and make available to the public the production and
relative market shares of, and the savings of water, energy,
and capital costs of water, wastewater, and stormwater
infrastructure attributable to the use of WaterSense-labeled
products, buildings, landscapes, facilities, processes, and
services;
(7) solicit comments from interested parties and the public
prior to establishing or revising a WaterSense category,
specification, installation criterion, or other criterion;
(8) provide reasonable notice to interested parties and the
public of any changes (including effective dates), on the
adoption of a new or revised category, specification,
installation criterion, or other criterion, along with--
(A) an explanation of the changes; and
(B) as appropriate, responses to comments submitted
by interested parties and the public;
(9) provide appropriate lead time (as determined by the
Administrator) prior to the applicable effective date for a new
or significant revision to a category, specification,
installation criterion, or other criterion, taking into account
the timing requirements of the manufacturing, marketing,
training, and distribution process for the specific product,
building and landscape, or service category addressed;
(10) identify and, if appropriate, implement other
voluntary approaches in commercial, institutional, residential,
industrial, and municipal sectors to encourage recycling and
reuse technologies to improve water efficiency or lower water
use; and
(11) if appropriate, authorize the WaterSense label for use
on products that are labeled by the Energy Star program
implemented by the Administrator and the Secretary of Energy.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $5,000,000 for fiscal year 2016;
(2) $5,000,000 for fiscal year 2017;
(3) $5,000,000 for fiscal year 2018;
(4) $5,000,000 for fiscal year 2019; and
(5) for each fiscal year thereafter, the applicable amount
for the preceding fiscal year, as adjusted to reflect changes
for the 12-month period ending the preceding November 30 in the
Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor.
SEC. 3153. INCREASING OPPORTUNITIES FOR AGRICULTURAL CONSERVATION.
(a) In General.--The Secretary of the Interior (referred to in this
section as the ``Secretary'') shall offer to enter into voluntary
agreements with public water agencies or other entities that receive
water from any project operated by the Bureau of Reclamation to
implement water conservation programs.
(b) Uses of Conserved Water.--
(1) In general.--Except as provided in paragraph (2), of
the quantity of water conserved as a result of an agreement
entered into pursuant to subsection (a)--
(A) 25 percent shall be retained by the public
water agency or entity with which the Secretary has
entered into the agreement; and
(B) 75 percent shall be retained by the Secretary,
of which--
(i) 33 percent shall be used or marketed on
an annual basis for purposes that will promote
groundwater recharge and conservation; and
(ii) 67 percent shall be used on an annual
basis for refuge water supply or other
authorized project purposes.
(2) Exceptions.--For good reason in a particular instance,
the Secretary and the public water agency or entity with which
the Secretary has entered into an agreement may agree to modify
the percentages referred to in paragraph (1).
(c) Contributed Funds.--
(1) In general.--Any existing water service or repayment
contractor within the project service area of a water
conservation agreement under this section may contribute funds
for the implementation of the agreement.
(2) Action by secretary.--The Secretary shall provide to
each contractor that contributes funds under paragraph (1) such
portion of the water described in subsection (b)(1)(B)(ii) as
the Secretary determines to be appropriate, but not to exceed
the proportion of funds contributed by the contractor.
(3) Additional water.--If a contractor contributes more
than 50 percent of the cost of a project carried out under an
agreement under this section, the Secretary may enter into an
agreement with the contractor to provide to the contractor such
portion of the water described in subsection (b)(1)(B)(i) for
groundwater recharge and conservation as the Secretary
determines to be appropriate, subject to the condition that the
contractor shall not receive a higher proportion of the water
conserved than the proportion of funds contributed by the
contractor.
SEC. 3154. SUPPORT FOR INNOVATIVE WATER SUPPLY AND CONSERVATION
TECHNOLOGIES.
(a) In General.--To promote the development of innovative water
supply and conservation technologies, the Administrator of the
Environmental Protection Agency (referred to in this section as the
``Administrator'') may award, on a competitive basis, grants and enter
into contracts to assist in the financing of research and demonstration
projects for those innovative technologies.
(b) Eligible Entities.--To be eligible to receive an award under
this section, an entity shall be--
(1) a local entity;
(2) a public nonprofit institution or organization;
(3) a commercial entity;
(4) a federally recognized Indian tribe; or
(5) a nonprofit institution or organization.
(c) Eligibility Criteria.--The Administrator shall establish
criteria for an entity described in subsection (b) to be eligible to
receive a grant from, or enter into a contract with, the Administrator
under this section, including--
(1) demonstration of the technical feasibility of the
proposal and the qualifications of the entity to carry out the
proposal;
(2) demonstration of the financial capability and
creditworthiness of non-Federal project sponsors;
(3) compliance with all applicable laws and receipt of all
necessary local, State, and Federal permits; and
(4) quantification of the estimated water to be produced or
saved by the project and the net cost of the project.
(d) Evaluation Criteria.--The Administrator shall establish
criteria for evaluating on a competitive basis eligible applicants
under this section, including the degree to which the proposed
technology--
(1) proposes an innovation that has broad, fundamental
implications for water savings or water supply;
(2) is economically feasible;
(3) could reduce the costs of water supply, including
reductions in associated energy costs;
(4) would solve environmental concerns or provide
environmental benefits;
(5) has a proof of concept, and a likely path to success
within a reasonable timeframe; and
(6) is aimed at the development of a specific water saving
or water supply application, as opposed to basic research aimed
at discovery and fundamental knowledge generation.
(e) Authority to Engage Others.--
(1) In general.--In carrying out research under this
section, the Administrator may engage such personnel,
industrial or engineering entities, Federal laboratories, water
resources research and technology institutions, other
facilities, and educational institutions as the Administrator
determines to be necessary.
(2) Technical and administrative assistance.--The
Administrator may--
(A) accept technical and administrative assistance
from States and public or private agencies in
connection with studies, surveys, location,
construction, operation, and other work relating to the
desalting of water; and
(B) enter into contracts or agreements that--
(i) establish the purposes for which the
assistance is contributed; and
(ii) provide for the sharing of costs
between the Administrator and any such agency.
(f) Cost Sharing.--
(1) Federal cost share.--Subject to paragraph (2), the
Federal share of the cost of a project under this section shall
not exceed 25 percent, unless the Administrator determines that
the project is not feasible without an increased Federal
contribution.
(2) Maximum federal cost share.--Notwithstanding paragraph
(1), the Federal share of the cost of a project under this
section shall not exceed 50 percent of the total project cost.
(3) Procedures for allocating costs.--
(A) In general.--The Administrator shall prescribe
appropriate procedures to implement this section.
(B) Non-federal costs.--The costs of operation,
maintenance, repair, and rehabilitation of any facility
funded under this section shall be a non-Federal
responsibility.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $35,000,000 for the period of
fiscal years 2016 through 2020.
TITLE IV--INVESTING IN RESEARCH AND DEVELOPMENT
SEC. 4001. BASIC RESEARCH.
Section 971(b) of the Energy Policy Act of 2005 (42 U.S.C.
16311(b)) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(8) $15,000,000,000 for each of fiscal years 2016 through
2020.''.
SEC. 4002. ADVANCED RESEARCH PROJECTS AGENCY-ENERGY.
Section 5012 of the America COMPETES Act (42 U.S.C. 16538) is
amended--
(1) in subsection (a)(3), by striking ``subsection (n)(1)''
and inserting ``subsection (o)(1)'';
(2) in subsection (i), by striking paragraph (1) and
inserting the following:
``(1) In general.--To the maximum extent practicable, the
Director shall ensure that--
``(A) the activities of ARPA-E are coordinated
with, and do not duplicate the efforts of, programs and
laboratories within the Department and other relevant
research agencies; and
``(B) ARPA-E does not provide funding for a project
unless the prospective grantee demonstrates sufficient
attempts to secure private financing or indicates that
the project is not independently commercially
viable.'';
(3) by redesignating subsection (n) as subsection (o);
(4) by inserting after subsection (m) the following:
``(n) Protection of Information.--The following types of
information collected by the ARPA-E from recipients of financial
assistance awards shall be considered privileged and confidential and
not subject to disclosure under section 552 of title 5, United States
Code:
``(1) Plans for commercialization of technologies developed
under the award, including business plans, technology-to-market
plans, market studies, and cost and performance models.
``(2) Investments provided to an awardee from third parties
(such as venture capital firms, hedge funds, and private equity
firms), including amounts and the percentage of ownership of
the awardee provided in return for the investments.
``(3) Additional financial support that the awardee--
``(A) plans to or has invested into the technology
developed under the award; or
``(B) is seeking from third parties.
``(4) Revenue from the licensing or sale of new products or
services resulting from research conducted under the award.'';
and
(5) in subsection (o) (as redesignated by paragraph (3))--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A), by striking ``paragraphs (4) and (5)'' and
inserting ``paragraph (4)'';
(ii) in subparagraph (D), by striking
``and'' at the end;
(iii) in subparagraph (E), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(F) $1,000,000, 000 for each of fiscal years 2016
through 2020.''; and
(B) in paragraph (4)(B), by striking ``(c)(2)(D)''
and inserting ``(c)(2)(C)''.
TITLE V--INVESTING IN CLEAN ENERGY
SEC. 5001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
Subtitle A--Clean Energy Tax Credits
SEC. 5011. CLEAN ENERGY PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45S. CLEAN ENERGY PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
energy production credit for any taxable year is an amount
equal to the product of--
``(A) the applicable credit rate (as determined
under paragraph (2)), multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a
qualified facility, and
``(ii)(I) sold by the taxpayer to an
unrelated person during the taxable year, or
``(II) in the case of a qualified facility
which is equipped with a metering device which
is owned and operated by an unrelated person,
sold, consumed, or stored by the taxpayer
during the taxable year.
``(2) Applicable credit rate.--
``(A) In general.--
``(i) Maximum credit rate.--Except as
provided in clause (ii), the applicable credit
rate is 1.5 cents.
``(ii) Reduction of credit based on
greenhouse gas emission rate.--The applicable
credit rate shall be reduced (but not below
zero) by an amount which bears the same ratio
to the amount in effect under clause (i) as the
greenhouse gas emissions rate for the qualified
facility bears to 372 grams of CO<INF>2</INF>e
per KWh.
``(B) Rounding.--If any amount determined under
subparagraph (A)(ii) is not a multiple of 0.1 cent,
such amount shall be rounded to the nearest multiple of
0.1 cent.
``(b) Greenhouse Gas Emissions Rate.--
``(1) In general.--For purposes of this section, the term
`greenhouse gas emissions rate' means the amount of greenhouse
gases emitted into the atmosphere by a qualified facility in
the production of electricity, expressed as grams of
CO<INF>2</INF>e per KWh.
``(2) Non-fossil fuel combustion and gasification.--In the
case of a qualified facility which produces electricity through
combustion or gasification of a non-fossil fuel, the greenhouse
gas emissions rate for such facility shall be equal to the net
rate of greenhouse gases emitted into the atmosphere by such
facility in the production of electricity, expressed as grams
of CO<INF>2</INF>e per KWh.
``(3) Establishment of safe harbor for qualified
facilities.--
``(A) In general.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall, by regulation, establish safe-harbor
greenhouse gas emissions rates for types or categories
of qualified facilities, which a taxpayer may elect to
use for purposes of this section.
``(B) Rounding.--In establishing the safe-harbor
greenhouse gas emissions rates for qualified
facilities, the Secretary may round such rates to the
nearest multiple of 37.2 grams of CO<INF>2</INF>e per
KWh (or, in the case of a greenhouse gas emissions rate
which is less than 18.6 grams of CO<INF>2</INF>e per
KWh, by rounding such rate to zero).
``(4) Carbon capture and sequestration equipment.--For
purposes of this subsection, the amount of greenhouse gases
emitted into the atmosphere by a qualified facility in the
production of electricity shall not include any qualified
carbon dioxide (as defined in section 48E(c)(3)(A)) that is
captured and disposed of by the taxpayer.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2018, the 1.5 cent amount in clause (i) of subsection
(a)(2)(A) shall be adjusted by multiplying such amount by the
inflation adjustment factor for the calendar year in which the
sale or use of the electricity occurs. If any amount as
increased under the preceding sentence is not a multiple of 0.1
cent, such amount shall be rounded to the nearest multiple of
0.1 cent.
``(2) Annual computation.--The Secretary shall, not later
than April 1 of each calendar year, determine and publish in
the Federal Register the inflation adjustment factor for such
calendar year in accordance with this subsection.
``(3) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator of
which is the GDP implicit price deflator for the calendar year
1992. The term `GDP implicit price deflator' means the most
recent revision of the implicit price deflator for the gross
domestic product as computed and published by the Department of
Commerce before March 15 of the calendar year.
``(d) Credit Phase-out.--
``(1) In general.--Subject to paragraph (3), if the
Secretary, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
determines that the annual greenhouse gas emissions from
electrical production in the United States are equal to or less
than 72 percent of the annual greenhouse gas emissions from
electrical production in the United States for calendar year
2005, the amount of the clean energy production credit under
subsection (a) for any qualified facility placed in service
during a calendar year described in paragraph (2) shall be
equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility placed in service during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 75 percent,
``(B) for a facility placed in service during the
second calendar year following such determination year,
50 percent,
``(C) for a facility placed in service during the
third calendar year following such determination year,
25 percent, and
``(D) for a facility placed in service during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.
``(3) Deadline to begin phase-out.--If the Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, determines that the
annual greenhouse gas emissions from electrical production in
the United States for each year before calendar year 2026 are
greater than the percentage specified in paragraph (1), then
the determination described in such paragraph shall be deemed
to have been made for calendar year 2025.
``(e) Definitions.--In this section:
``(1) CO<INF>2</INF>e per kwh.--The term `CO<INF>2</INF>e
per KWh' means, with respect to any greenhouse gas, the
equivalent carbon dioxide per kilowatt hour of electricity
produced.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given such term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(3) Qualified facility.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the term `qualified facility' means a facility
which is--
``(i) used for the generation of
electricity, and
``(ii) originally placed in service after
December 31, 2017.
``(B) 10-year production credit.--For purposes of
this section, a facility shall only be treated as a
qualified facility during the 10-year period beginning
on the date the facility was originally placed in
service.
``(C) Expansion of facility; incremental
production.--A qualified facility shall include either
of the following in connection with a facility
described in subparagraph (A)(i) that was previously
placed in service, but only to the extent of the
increased amount of electricity produced at the
facility by reason of the following:
``(i) A new unit placed in service after
December 31, 2017.
``(ii) Any efficiency improvements or
additions of capacity placed in service after
December 31, 2017.
``(D) Coordination with other credits.--The term
`qualified facility' shall not include any facility for
which--
``(i) a renewable electricity production
credit determined under section 45 is allowed
under section 38 for the taxable year or any
prior taxable year,
``(ii) an energy credit determined under
section 48 is allowed under section 38 for the
taxable year or any prior taxable year, or
``(iii) a clean energy investment credit
determined under section 48E is allowed under
section 38 for the taxable year or any prior
taxable year.
``(f) Final Guidance.--Not later than January 1, 2017, the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall issue final guidance regarding implementation
of this section, including calculation of greenhouse gas emission rates
for qualified facilities and determination of clean energy production
credits under this section.
``(g) Special Rules.--
``(1) Only production in the united states taken into
account.--Consumption or sales shall be taken into account
under this section only with respect to electricity the
production of which is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(2) Combined heat and power system property.--
``(A) In general.--For purposes of subsection
(a)(1)(B), the kilowatt hours of electricity produced
by a taxpayer at a qualified facility shall include any
production in the form of useful thermal energy by any
combined heat and power system property within such
facility.
``(B) Combined heat and power system property.--For
purposes of this paragraph, the term `combined heat and
power system property' has the same meaning given such
term by section 48(c)(3) (without regard to
subparagraphs (A)(iv), (B), and (D) thereof).
``(C) Conversion from btu to kwh.--
``(i) In general.--For purposes of
subparagraph (A), the amount of kilowatt hours
of electricity produced in the form of useful
thermal energy shall be equal to the quotient
of--
``(I) the total useful thermal
energy produced by the combined heat
and power system property within the
qualified facility, divided by
``(II) the heat rate for such
facility.
``(ii) Heat rate.--For purposes of this
subparagraph, the term `heat rate' means the
amount of energy used by the qualified facility
to generate 1 kilowatt hour of electricity,
expressed as British thermal units per net
kilowatt hour generated.
``(3) Production attributable to the taxpayer.--In the case
of a qualified facility in which more than 1 person has an
ownership interest, except to the extent provided in
regulations prescribed by the Secretary, production from the
facility shall be allocated among such persons in proportion to
their respective ownership interests in the gross sales from
such facility.
``(4) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling electricity to an
unrelated person if such electricity is sold to such a person
by another member of such group.
``(5) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(6) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an
eligible cooperative organization, any portion
of the credit determined under subsection (a)
for the taxable year may, at the election of
the organization, be apportioned among patrons
of the organization on the basis of the amount
of business done by the patrons during the
taxable year.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless the
organization designates the apportionment as
such in a written notice mailed to its patrons
during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any patrons under
subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the first
taxable year of each patron ending on or after
the last day of the payment period (as defined
in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable
year of each patron ending on or after the date
on which the patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection
(a) for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
patrons under subparagraph (A) for the taxable
year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this
chapter.
``(D) Eligible cooperative defined.--For purposes
of this section, the term `eligible cooperative' means
a cooperative organization described in section 1381(a)
which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural
producers. For this purpose an entity owned by an
agricultural producer is one that is more than 50
percent owned by agricultural producers.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended--
(A) in paragraph (35), by striking ``plus'' at the
end,
(B) in paragraph (36), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(37) the clean energy production credit determined under
section 45S(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45S. Clean energy production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2017.
SEC. 5012. CLEAN ENERGY INVESTMENT CREDIT.
(a) Business Credit.--
(1) In general.--Subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after section 48D the
following new section:
``SEC. 48E. CLEAN ENERGY INVESTMENT CREDIT.
``(a) Investment Credit for Qualified Property.--
``(1) In general.--For purposes of section 46, the clean
energy investment credit for any taxable year is an amount
equal to the sum of--
``(A) the clean energy percentage of the qualified
investment for such taxable year with respect to any
qualified facility, plus
``(B) 30 percent of the qualified investment for
such taxable year with respect to qualified carbon
capture and sequestration equipment, plus
``(C) 30 percent of the qualified investment for
such taxable year with respect to energy storage
property.
``(2) Clean energy percentage.--
``(A) In general.--
``(i) Maximum percentage.--Except as
provided in clause (ii), the clean energy
percentage is 30 percent.
``(ii) Reduction of percentage based on
greenhouse gas emissions rate.--The clean
energy percentage shall be reduced (but not
below zero) by an amount which bears the same
ratio to 30 percent as the anticipated
greenhouse gas emissions rate for the qualified
facility bears to 372 grams of CO<INF>2</INF>e
per KWh.
``(B) Rounding.--If any amount determined under
subparagraph (A)(ii) is not a multiple of 1 percent,
such amount shall be rounded to the nearest multiple of
1 percent.
``(3) Coordination with rehabilitation credit.--The clean
energy percentage shall not apply to that portion of the basis
of any property which is attributable to qualified
rehabilitation expenditures (as defined in section 47(c)(2)).
``(b) Qualified Investment With Respect to Any Qualified
Facility.--
``(1) In general.--For purposes of subsection (a)(1)(A),
the qualified investment with respect to any qualified facility
for any taxable year is the basis of any qualified property
placed in service by the taxpayer during such taxable year
which is part of a qualified facility.
``(2) Qualified property.--The term `qualified property'
means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not
including a building or its structural
components), but only if such property is used
as an integral part of the qualified facility,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable,
``(C) which is constructed, reconstructed, erected,
or acquired by the taxpayer, and
``(D) the original use of which commences with the
taxpayer.
``(3) Qualified facility.--The term `qualified facility'
has the same meaning given such term by section 45S(e)(3)
(without regard to subparagraphs (B) and (D) thereof). Such
term shall not include any facility for which a renewable
electricity production credit under section 45 or an energy
credit determined under section 48 is allowed under section 38
for the taxable year or any prior taxable year.
``(c) Qualified Investment With Respect to Qualified Carbon Capture
and Sequestration Equipment.--
``(1) In general.--For purposes of subsection (a)(1)(B),
the qualified investment with respect to qualified carbon
capture and sequestration equipment for any taxable year is the
basis of any qualified carbon capture and sequestration
equipment placed in service by the taxpayer during such taxable
year.
``(2) Qualified carbon capture and sequestration
equipment.--The term `qualified carbon capture and
sequestration equipment' means property--
``(A) installed in a facility placed in service
before January 1, 2018, which produces electricity,
``(B) which results in at least a 50 percent
reduction in the carbon dioxide emissions rate at the
facility, as compared to such rate before installation
of such equipment, through the capture and disposal of
qualified carbon dioxide (as defined in paragraph
(3)(A)),
``(C) with respect to which depreciation is
allowable,
``(D) which is constructed, reconstructed, erected,
or acquired by the taxpayer, and
``(E) the original use of which commences with the
taxpayer.
``(3) Qualified carbon dioxide.--
``(A) In general.--The term `qualified carbon
dioxide' means carbon dioxide captured from an
industrial source which--
``(i) would otherwise be released into the
atmosphere as industrial emission of greenhouse
gas,
``(ii) is measured at the source of capture
and verified at the point of disposal or
injection,
``(iii) is disposed of by the taxpayer in
secure geological storage, and
``(iv) is captured and disposed of within
the United States (within the meaning of
section 638(1)) or a possession of the United
States (within the meaning of section 638(2)).
``(B) Secure geological storage.--The term `secure
geological storage' has the same meaning given to such
term under section 45Q(d)(2).
``(d) Qualified Investment With Respect to Energy Storage
Property.--
``(1) In general.--For purposes of subsection (a)(1)(C),
the qualified investment with respect to energy storage
property for any taxable year is the basis of any energy
storage property placed in service by the taxpayer during such
taxable year.
``(2) Energy storage property.--The term `energy storage
property' means property--
``(A) installed at or near a facility which
produces electricity,
``(B) which receives, stores, and delivers
electricity or energy for conversion to electricity
which is sold by the taxpayer to an unrelated person
(or, in the case of a facility which is equipped with a
metering device which is owned and operated by an
unrelated person, sold or consumed by the taxpayer),
which may include--
``(i) hydroelectric pumped storage,
``(ii) compressed air energy storage,
``(iii) regenerative fuel cells,
``(iv) batteries,
``(v) superconducting magnetic energy
storage,
``(vi) thermal energy storage systems,
``(vii) fuel cells (as defined in section
48(c)(1)),
``(viii) any other relevant technology
identified by the Secretary (in consultation
with the Secretary of Energy), and
``(ix) any combination of the properties
described in clauses (i) through (viii),
``(C) with respect to which depreciation is
allowable,
``(D) which is constructed, reconstructed, erected,
or acquired by the taxpayer,
``(E) the original use of which commences with the
taxpayer, and
``(F) which is placed in service after December 31,
2017.
``(e) Greenhouse Gas Emissions Rate.--
``(1) In general.--For purposes of this section, the term
`greenhouse gas emissions rate' has the same meaning given such
term under subsection (b) of section 45S.
``(2) Establishment of safe harbor for qualified
property.--
``(A) In general.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall, by regulation, establish safe-harbor
greenhouse gas emissions rates for types or categories
of qualified property which are part of a qualified
facility, which a taxpayer may elect to use for
purposes of this section.
``(B) Rounding.--In establishing the safe-harbor
greenhouse gas emissions rates for qualified property,
the Secretary may round such rates to the nearest
multiple of 37.2 grams of CO<INF>2</INF>e per KWh (or,
in the case of a greenhouse gas emissions rate which is
less than 18.6 grams of CO<INF>2</INF>e per KWh, by
rounding such rate to zero).
``(f) Certain Progress Expenditure Rules Made Applicable.--Rules
similar to the rules of subsection (c)(4) and (d) of section 46 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
``(g) Credit Phase-out.--
``(1) In general.--Subject to paragraph (3), if the
Secretary, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
determines that the annual greenhouse gas emissions from
electrical production in the United States are equal to or less
than 72 percent of the annual greenhouse gas emissions from
electrical production in the United States for calendar year
2005, the amount of the clean energy investment credit under
subsection (a) for any qualified facility, qualified carbon
capture and sequestration equipment, or energy storage property
placed in service during a calendar year described in paragraph
(2) shall be equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility or property placed in service
during the first calendar year following the calendar
year in which the determination described in paragraph
(1) is made, 75 percent,
``(B) for a facility or property placed in service
during the second calendar year following such
determination year, 50 percent,
``(C) for a facility or property placed in service
during the third calendar year following such
determination year, 25 percent, and
``(D) for a facility or property placed in service
during any calendar year subsequent to the year
described in subparagraph (C), 0 percent.
``(3) Deadline to begin phase-out.--If the Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, determines that the
annual greenhouse gas emissions from electrical production in
the United States for each year before calendar year 2026 are
greater than the percentage specified in paragraph (1), then
the determination described in such paragraph shall be deemed
to have been made for calendar year 2025.
``(h) Definitions.--In this section:
``(1) CO<INF>2</INF>e per kwh.--The term `CO<INF>2</INF>e
per KWh' has the same meaning given such term under section
45S(e)(1).
``(2) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given such term under section 45S(e)(2).
``(i) Recapture of Credit.--For purposes of section 50, if the
Administrator of the Environmental Protection Agency determines that--
``(1) the greenhouse gas emissions rate for a qualified
facility is significantly higher than the anticipated
greenhouse gas emissions rate claimed by the taxpayer for
purposes of the clean energy investment credit under this
section, or
``(2) with respect to any qualified carbon capture and
sequestration equipment installed in a facility, the carbon
dioxide emissions from such facility cease to be captured or
disposed of in a manner consistent with the requirements of
subsection (c),
the facility or equipment shall cease to be investment credit property
in the taxable year in which the determination is made.
``(j) Final Guidance.--Not later than January 1, 2017, the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall issue final guidance regarding implementation
of this section, including calculation of greenhouse gas emission rates
for qualified facilities and determination of clean energy investment
credits under this section.''.
(2) Conforming amendments.--
(A) Section 46 is amended by inserting a comma at
the end of paragraph (4), by striking ``and'' at the
end of paragraph (5), by striking the period at the end
of paragraph (6) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(7) the clean energy investment credit.''.
(B) Section 49(a)(1)(C) is amended by striking
``and'' at the end of clause (v), by striking the
period at the end of clause (vi) and inserting a comma,
and by adding at the end the following new clauses:
``(vii) the basis of any qualified property
which is part of a qualified facility under
section 48E,
``(viii) the basis of any qualified carbon
capture and sequestration equipment under
section 48E, and
``(ix) the basis of any energy storage
property under section 48E.''.
(C) Section 50(a)(2)(E) is amended by inserting
``or 48E(e)'' after ``section 48(b)''.
(D) The table of sections for subpart E of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 48D the following
new item:
``48E. Clean energy investment credit.''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2017, 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).
(b) Individual Credit.--
(1) In general.--Section 25D is amended to read as follows:
``SEC. 25D. CLEAN RESIDENTIAL ENERGY CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the sum of--
``(A) the clean energy percentage of the
expenditures made by the taxpayer for qualified
property which is--
``(i) installed in a dwelling unit which is
located in the United States and used as a
residence by the taxpayer, and
``(ii) placed in service during such
taxable year, plus
``(B) 30 percent of the expenditures made by the
taxpayer for energy storage property which is--
``(i) installed in a dwelling unit which is
located in the United States and used as a
residence by the taxpayer, and
``(ii) placed in service during such
taxable year.
``(2) Clean energy percentage.--
``(A) In general.--
``(i) Maximum percentage.--Except as
provided in clause (ii), the clean energy
percentage is 30 percent.
``(ii) Reduction of percentage based on
greenhouse gas emissions rate.--The clean
energy percentage shall be reduced (but not
below zero) by an amount which bears the same
ratio to 30 percent as the anticipated
greenhouse gas emissions rate for the qualified
property bears to 372 grams of CO<INF>2</INF>e
per KWh.
``(B) Rounding.--If any amount determined under
subparagraph (A)(ii) is not a multiple of 1 percent,
such amount shall be rounded to the nearest multiple of
1 percent.
``(C) Definitions.--For purposes of this section,
the terms `greenhouse gas emissions rate' and
`CO<INF>2</INF>e per KWh' have the same meanings given
such terms under subsections (b) and (e)(1) of section
45S, respectively.
``(3) Establishment of safe harbor for qualified
property.--
``(A) In general.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall, by regulation, establish safe-harbor
greenhouse gas emissions rates for types or categories
of qualified property which are installed in a dwelling
unit, which a taxpayer may elect to use for purposes of
this section.
``(B) Rounding.--In establishing the safe-harbor
greenhouse gas emissions rates for qualified property,
the Secretary may round such rates to the nearest
multiple of 37.2 grams of CO<INF>2</INF>e per KWh (or,
in the case of a greenhouse gas emissions rate which is
less than 18.6 grams of CO<INF>2</INF>e per KWh, by
rounding such rate to zero).
``(b) Qualified Property.--The term `qualified property' means
property--
``(1) which is tangible personal property,
``(2) which is used for the generation of electricity,
``(3) which is constructed, reconstructed, erected, or
acquired by the taxpayer,
``(4) the original use of which commences with the
taxpayer, and
``(5) which is originally placed in service after December
31, 2017.
``(c) Energy Storage Property.--The term `energy storage property'
means property which receives, stores, and delivers electricity or
energy for conversion to electricity which is consumed by the taxpayer,
which may include--
``(1) batteries,
``(2) thermal energy storage systems,
``(3) fuel cells,
``(4) any other relevant technology identified by the
Secretary (in consultation with the Secretary of Energy), and
``(5) any combination of the properties described in
paragraphs (1) through (4).
``(d) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under this
subpart (other than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.
``(e) Credit Phase-out.--
``(1) In general.--Subject to paragraph (3), if the
Secretary determines that the annual greenhouse gas emissions
from electrical production in the United States are equal to or
less than the percentage specified in section 48E(g), the
amount of the credit allowable under subsection (a) for any
qualified property or energy storage property placed in service
during a calendar year described in paragraph (2) shall be
equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for property placed in service during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 75 percent,
``(B) for property placed in service during the
second calendar year following such determination year,
50 percent,
``(C) for property placed in service during the
third calendar year following such determination year,
25 percent, and
``(D) for property placed in service during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.
``(3) Deadline to begin phase-out.--If the Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, determines that the
annual greenhouse gas emissions from electrical production in
the United States for each year before calendar year 2026 are
greater than the percentage specified in section 48E(g), then
the determination described in paragraph (1) shall be deemed to
have been made for calendar year 2025.
``(f) Special Rules.--For purposes of this section:
``(1) Labor costs.--Expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the qualified property or energy storage
property and for piping or wiring to interconnect such property
to the dwelling unit shall be taken into account for purposes
of this section.
``(2) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures of such corporation.
``(3) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which the individual
owns, such individual shall be treated as having made
the individual's proportionate share of any
expenditures of such association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(4) Allocation in certain cases.--If less than 80 percent
of the use of a property is for nonbusiness purposes, only that
portion of the expenditures for such property which is properly
allocable to use for nonbusiness purposes shall be taken into
account.
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditures with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditures shall be reduced by
the amount of the credit so allowed.
``(h) Final Guidance.--Not later than January 1, 2017, the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall issue final guidance regarding implementation
of this section, including calculation of greenhouse gas emission rates
for qualified property and determination of residential clean energy
property credits under this section.''.
(2) Conforming amendments.--
(A) Paragraph (1) of section 45(d) is amended by
striking ``Such term'' and all that follows through the
period and inserting the following: ``Such term shall
not include any facility with respect to which any
expenditures for qualified property (as defined in
subsection (b) of section 25D) which uses wind to
produce electricity is taken into account in
determining the credit under such section.''.
(B) Paragraph (34) of section 1016(a) is amended by
striking ``section 25D(f)'' and inserting ``section
25D(h)''.
(C) The item relating to section 25D in the table
of contents for subpart A of part IV of subchapter A of
chapter 1 is amended to read as follows:
``Sec. 25D. Clean residential energy credit.''.
(3) Effective date.--The amendments made by this section
shall apply to property placed in service after December 31,
2017.
SEC. 5013. EXTENSIONS AND MODIFICATIONS OF VARIOUS ENERGY PROVISIONS.
(a) Nonbusiness Energy Property.--
(1) In general.--Paragraph (2) of section 25C(g) is amended
by striking ``December 31, 2014'' and inserting ``December 31,
2017''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2014.
(b) Residential Energy Efficient Property.--Subsection (g) of
section 25D is amended by striking ``December 31, 2016'' and inserting
``December 31, 2017''.
(c) Alternative Fuel Vehicle Refueling Property Credit.--
(1) In general.--Paragraph (1) of section 30C(g) is amended
by striking ``December 31, 2014'' and inserting ``December 31,
2017''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2014.
(d) 2- and 3-wheeled Plug-in Electric Vehicles.--
(1) In general.--Subparagraph (E) of section 30D(g) is
amended to read as follows:
``(E) is acquired--
``(i) after December 31, 2011, and before
January 1, 2014, or
``(ii) after December 31, 2014, and before
January 1, 2018.''.
(2) Effective date.--The amendments made by this subsection
shall apply to vehicles acquired after December 31, 2014.
(e) Electricity Produced From Certain Renewable Resources.--
(1) In general.--The following provisions of section 45(d)
are each amended by striking ``January 1, 2015'' each place it
appears and inserting ``January 1, 2018'':
(A) Paragraph (1).
(B) Paragraph (2)(A).
(C) Paragraph (3)(A).
(D) Paragraph (4)(B).
(E) Paragraph (6).
(F) Paragraph (7).
(G) Paragraph (9).
(H) Paragraph (11)(B).
(2) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2015.
(f) Credit for Production From Advanced Nuclear Power Facilities.--
Section 45J(d)(1)(B) is amended by striking ``2021'' and inserting
``2018''.
(g) New Energy Efficient Home Credit.--
(1) In general.--Subsection (g) of section 45L is amended
by striking ``December 31, 2014'' and inserting ``December 31,
2017''.
(2) Effective date.--The amendments made by this subsection
shall apply to any qualified new energy efficient home acquired
after December 31, 2014.
(h) Repeal of Energy Efficient Appliance Credit.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 of subtitle A is amended by striking section 45M.
(2) Conforming amendments.--
(A) Section 38(b) is amended by striking paragraph
(24).
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1 of subtitle A is amended
by striking the item relating to section 45M.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
(i) Credit for Carbon Dioxide Sequestration.--Section 45Q(c) is
amended--
(1) in paragraph (2), by striking ``and'' at the end,
(2) in paragraph (3), by striking the period at the end and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(4) which is placed in service before January 1, 2018.''.
(j) Energy Credit.--
(1) Qualified investment credit facility.--
(A) In general.--Section 48(a)(5)(C)(ii) is amended
by striking ``January 1, 2015'' and inserting ``January
1, 2018''.
(B) Effective date.--The amendments made by this
paragraph shall take effect on January 1, 2015.
(2) Solar energy property.--Section 48(a) is amended--
(A) in paragraphs (2)(A)(i)(II) and (3)(A)(ii), by
striking ``January 1, 2017'' each place it appears and
inserting ``January 1, 2018'', and
(B) in paragraph (3)(A)(i), by inserting ``but only
with respect to periods ending before January 1, 2018''
after ``swimming pool,''.
(3) Geothermal energy property.--Section 48(a)(3)(A)(iii)
is amended by inserting ``with respect to periods ending before
January 1, 2018, and'' after ``but only''.
(4) Thermal energy property.--Section 48(a)(3)(A)(vii) is
amended by striking ``January 1, 2017'' and inserting ``January
1, 2018''.
(5) Qualified fuel cell property.--Section 48(c)(1)(D) is
amended by striking ``December 31, 2016'' and inserting
``December 31, 2017''.
(6) Qualified microturbine property.--Section 48(c)(2)(D)
is amended by striking ``December 31, 2016'' and inserting
``December 31, 2017''.
(7) Combined heat and power system property.--Section
48(c)(3)(A)(iv) is amended by striking ``January 1, 2017'' and
inserting ``January 1, 2018''.
(8) Qualified small wind energy property.--Section
48(c)(4)(C) is amended by striking ``December 31, 2016'' and
inserting ``December 31, 2017''.
(k) Qualifying Advanced Energy Project Credit.--
(1) In general.--Section 48C is amended--
(A) by redesignating subsection (e) as subsection
(f), and
(B) by inserting after subsection (d) the following
new subsection:
``(e) Additional Qualifying Advanced Energy Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, the
Secretary, in consultation with the Secretary of
Energy, shall establish an additional qualifying
advanced energy project program to consider and award
certifications for qualified investments eligible for
credits under this section to qualifying advanced
energy project sponsors.
``(B) Limitation.--The total amount of credits that
may be allocated under the program described in
subparagraph (A) shall not exceed $5,000,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application containing such information as the
Secretary may require during the 2-year period
beginning on the date the Secretary establishes the
program under paragraph (1).
``(B) Time to meet criteria for certification.--
Each applicant for certification shall have 1 year from
the date of acceptance by the Secretary of the
application during which to provide to the Secretary
evidence that the requirements of the certification
have been met.
``(C) Period of issuance.--An applicant which
receives a certification shall have 3 years from the
date of issuance of the certification in order to place
the project in service and if such project is not
placed in service by that time period, then the
certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualifying
advanced energy projects to certify under this section, the
Secretary shall consider the same criteria described in
subsection (d)(3).
``(4) Review and redistribution.--
``(A) Review.--Not later than 4 years after the
date of enactment of this subsection, the Secretary
shall review the credits allocated pursuant to this
subsection as of such date.
``(B) Redistribution.--The Secretary may reallocate
credits awarded under this section if the Secretary
determines that--
``(i) there is an insufficient quantity of
qualifying applications for certification
pending at the time of the review, or
``(ii) any certification made pursuant to
paragraph (2) has been revoked pursuant to
paragraph (2)(B) because the project subject to
the certification has been delayed as a result
of third party opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary determines
that credits under this section are available for
reallocation pursuant to the requirements set forth in
paragraph (2), the Secretary is authorized to conduct
an additional program for applications for
certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose
the identity of the applicant and the amount of the credit with
respect to such applicant.''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods after the date of the enactment of this
Act, 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).
(l) Energy Efficient Commercial Buildings Deduction.--
(1) In general.--Subsection (h) of section 179D is amended
by striking ``December 31, 2014'' and inserting ``December 31,
2017''.
(2) Effective date.--The amendments made by this section
shall apply to property placed in service after December 31,
2014.
Subtitle B--Clean Fuel Tax Credits
SEC. 5021. CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by section _01, is amended by adding at the end the
following new section:
``SEC. 45T. CLEAN FUEL PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
fuel production credit for any taxable year is an amount equal
to the product of--
``(A) $1.00 per energy equivalent of a gallon of
gasoline with respect to any transportation fuel which
is--
``(i) produced by the taxpayer at a
qualified facility, and
``(ii) sold or used by the taxpayer in a
manner described in paragraph (2), and
``(B) the emissions factor for such fuel (as
determined under subsection (b)(2)).
``(2) Sale or use.--For purposes of paragraph (1)(A)(ii),
the transportation fuel is sold or used in a manner described
in this paragraph if such fuel is--
``(A) sold by the taxpayer to an unrelated person--
``(i) for use by such person in the
production of a fuel mixture that will be used
as a transportation fuel,
``(ii) for use by such person as a
transportation fuel in a trade or business, or
``(iii) who sells such fuel at retail to
another person and places such fuel in the fuel
tank of such other person, or
``(B) used or sold by the taxpayer for any purpose
described in subparagraph (A).
``(3) Rounding.--If any amount determined under paragraph
(1) is not a multiple of 0.1 cent, such amount shall be rounded
to the nearest multiple of 0.1 cent.
``(b) Emissions Factors.--
``(1) Emissions factor.--
``(A) In general.--The emissions factor of a
transportation fuel shall be an amount equal to the
quotient of--
``(i) an amount (not less than zero) equal
to --
``(I) 77.23, minus
``(II) the emissions rate for such
fuel, divided by
``(ii) 77.23.
``(B) Establishment of safe harbor emissions
rate.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency,
shall establish the safe harbor emissions rate for
similar types and categories of transportation fuels
based on the amount of lifecycle greenhouse gas
emissions (as described in section 211(o)(1)(H) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect
on the date of the enactment of this section) for such
fuels, expressed as kilograms of CO<INF>2</INF>e per
mmBTU, which a taxpayer may elect to use for purposes
of this section.
``(C) Rounding of safe harbor emissions rate.--The
Secretary may round the safe harbor emissions rates
under subparagraph (B) to the nearest multiple of 7.723
kilograms of CO<INF>2</INF>e per mmBTU, except that, in
the case of an emissions rate that is less than 3.862
kilograms of CO<INF>2</INF>e per mmBTU, the Secretary
may round such rate to zero.
``(D) Provisional safe harbor emissions rate.--
``(i) In general.--In the case of any
transportation fuel for which a safe harbor
emissions rate has not been established by the
Secretary, a taxpayer producing such fuel may
file a petition with the Secretary for
determination of the safe harbor emissions rate
with respect to such fuel.
``(ii) Establishment of provisional and
final safe harbor emissions rate.--In the case
of a transportation fuel for which a petition
described in clause (i) has been filed, the
Secretary, in consultation with the
Administrator of the Environmental Protection
Agency, shall--
``(I) not later than 12 months
after the date on which the petition
was filed, provide a provisional safe
harbor emissions rate for such fuel
which a taxpayer may use for purposes
of this section, and
``(II) not later than 24 months
after the date on which the petition
was filed, establish the safe harbor
emissions rate for such fuel.
``(E) Rounding.--If any amount determined under
subparagraph (A) is not a multiple of 0.1, such amount
shall be rounded to the nearest multiple of 0.1.
``(2) Publishing safe harbor emissions rate.--The
Secretary, in consultation with the Administrator of the
Environmental Protection Agency, shall publish a table that
sets forth the safe harbor emissions rate (as established
pursuant to paragraph (1)) for similar types and categories of
transportation fuels.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of calendar years beginning
after 2018, the $1.00 amount in subsection (a)(1)(A) shall be
adjusted by multiplying such amount by the inflation adjustment
factor for the calendar year in which the sale or use of the
transportation fuel occurs. If any amount as increased under
the preceding sentence is not a multiple of 1 cent, such amount
shall be rounded to the nearest multiple of 1 cent.
``(2) Inflation adjustment factor.--For purposes of
paragraph (1), the inflation adjustment factor shall be the
inflation adjustment factor determined and published by the
Secretary pursuant to section 45S(c), determined by
substituting `calendar year 2017' for `calendar year 1992' in
paragraph (3) thereof.
``(d) Credit Phase-out.--
``(1) In general.--Subject to paragraph (3), if the
Secretary, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
determines that the greenhouse gas emissions from
transportation fuel produced and sold at retail annually in the
United States are equal to or less than 72 percent of the
greenhouse gas emissions from transportation fuel produced and
sold at retail in the United States during calendar year 2005,
the amount of the clean fuel production credit under this
section for any qualified facility placed in service during a
calendar year described in paragraph (2) shall be equal to the
product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility placed in service during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 75 percent,
``(B) for a facility placed in service during the
second calendar year following such determination year,
50 percent,
``(C) for a facility placed in service during the
third calendar year following such determination year,
25 percent, and
``(D) for a facility placed in service during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.
``(3) Deadline to begin phase-out.--If the Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, determines that the
greenhouse gas emissions from transportation fuel produced and
sold at retail annually in the United States are, for each year
before calendar year 2026, greater than the percentage
specified in paragraph (1), then the determination described in
such paragraph shall be deemed to have been made for calendar
year 2025.
``(e) Definitions.--In this section:
``(1) mmBTU.--The term `mmBTU' means 1,000,000 British
thermal units.
``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means,
with respect to any greenhouse gas, the equivalent carbon
dioxide.
``(3) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given that term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(4) Qualified facility.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the term `qualified facility' means a facility
used for the production of transportation fuels.
``(B) 10-year production credit.--For purposes of
this section, a facility shall only qualify as a
qualified facility--
``(i) in the case of a facility that is
originally placed in service after December 31,
2017, for the 10-year period beginning on the
date such facility is placed in service, or
``(ii) in the case of a facility that is
originally placed in service before January 1,
2018, for the 10-year period beginning on
January 1, 2018.
``(5) Transportation fuel.--The term `transportation fuel'
means a fuel which is suitable for use as a fuel in a highway
vehicle or aircraft.
``(f) Final Guidance.--Not later than January 1, 2017, the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall issue final guidance regarding implementation
of this section, including calculation of emissions factors for
transportation fuel, the table described in subsection (b)(2), and the
determination of clean fuel production credits under this section.
``(g) Special Rules.--
``(1) Only registered production in the united states taken
into account.--
``(A) In general.--No clean fuel production credit
shall be determined under subsection (a) with respect
to any transportation fuel unless--
``(i) the taxpayer is registered as a
producer of clean fuel under section 4101 at
the time of production, and
``(ii) such fuel is produced in the United
States.
``(B) United states.--For purposes of this
paragraph, the term `United States' includes any
possession of the United States.
``(2) Production attributable to the taxpayer.--In the case
of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations
prescribed by the Secretary, production from the facility shall
be allocated among such persons in proportion to their
respective ownership interests in the gross sales from such
facility.
``(3) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling fuel to an unrelated
person if such fuel is sold to such a person by another member
of such group.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(5) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an
eligible cooperative organization, any portion
of the credit determined under subsection (a)
for the taxable year may, at the election of
the organization, be apportioned among patrons
of the organization on the basis of the amount
of business done by the patrons during the
taxable year.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless the
organization designates the apportionment as
such in a written notice mailed to its patrons
during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any patrons under
subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the first
taxable year of each patron ending on or after
the last day of the payment period (as defined
in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable
year of each patron ending on or after the date
on which the patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection
(a) for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
patrons under subparagraph (A) for the taxable
year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this
chapter.
``(D) Eligible cooperative defined.--For purposes
of this section the term `eligible cooperative' means a
cooperative organization described in section 1381(a)
which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural
producers. For this purpose an entity owned by an
agricultural producer is one that is more than 50
percent owned by agricultural producers.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by section _01, is amended--
(A) in paragraph (36), by striking ``plus'' at the
end,
(B) in paragraph (37), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(38) the clean fuel production credit determined under
section 45T(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by section _01, is
amended by adding at the end the following new item:
``Sec. 45T. Clean fuel production credit.''.
(3) Section 4101(a)(1) is amended by inserting ``every
person producing a fuel eligible for the clean fuel production
credit (pursuant to section 45T),'' after ``section
6426(b)(4)(A)),''.
(c) Effective Date.--The amendments made by this section shall
apply to transportation fuel produced after December 31, 2017.
SEC. 5022. TEMPORARY EXTENSION OF EXISTING FUEL INCENTIVES.
(a) Second Generation Biofuel Producer Credit.--
(1) In general.--Section 40(b)(6) is amended--
(A) in subparagraph (E)(i)--
(i) in subclause (I), by striking ``and''
at the end,
(ii) in subclause (II), by striking the
period at the end and inserting ``, and'', and
(iii) by inserting at the end the following
new subclause:
``(III) qualifies as a
transportation fuel (as defined in
section 45T(e)(5)).'', and
(B) in subparagraph (J)(i), by striking ``2015''
and inserting ``2018''.
(2) Effective date.--The amendments made by this subsection
shall apply to qualified second generation biofuel production
after December 31, 2014.
(b) Biodiesel and Renewable Diesel Used as Fuel.--
(1) In general.--Section 40A is amended--
(A) in subsection (f)(3)(B), by striking ``or
D396'', and
(B) in subsection (g), by striking ``2014'' and
inserting ``2017''.
(2) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2014.
(c) Credit for Biodiesel and Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended--
(A) in subsection (c)(6), by striking ``2014'' and
inserting ``2017'',
(B) in subsection (d)--
(i) in paragraph (1), by striking ``motor
vehicle'' and inserting ``highway vehicle'',
(ii) in paragraph (2)(D), by striking
``liquefied'', and
(iii) in paragraph (5), by striking
``2014'' and inserting ``2017'', and
(C) in subsection (e), by amending paragraph (3) to
read as follows:
``(3) Termination.--This subsection shall not apply to any
sale or use for any period after--
``(A) in the case of any alternative fuel mixture
sold or used by the taxpayer for the purposes described
in subsection (d)(1), December 31, 2017,
``(B) in the case of any sale or use involving
hydrogen that is not for the purposes described in
subsection (d)(1), December 31, 2017, and
``(C) in the case of any sale or use not described
in subparagraph (A) or (B), December 31, 2014.''.
(2) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2014.
(d) Biodiesel, Biodiesel Mixtures, and Alternative Fuels.--
(1) In general.--Section 6427(e)(6) is amended--
(A) in subparagraph (B), by striking ``2014'' and
inserting ``2017'', and
(B) in subparagraph (C), by striking ``2014'' and
inserting ``2017''.
(2) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2014.
(e) Special Rule for Certain Periods During 2015.--Notwithstanding
any other provision of law, in the case of--
(1) any biodiesel mixture credit properly determined under
section 6426(c) of the Internal Revenue Code of 1986 for
periods after December 31, 2014, and on or before the last day
of the first calendar quarter ending after the date of the
enactment of this Act, and
(2) any alternative fuel credit properly determined under
section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to
such credit (including any payment under section 6427(e) of such Code)
shall be made, only in such manner as the Secretary of the Treasury (or
the Secretary's delegate) shall provide. Such Secretary shall issue
guidance within 30 days after the date of the enactment of this Act
providing for a one-time submission of claims covering periods
described in the preceding sentence. Such guidance shall provide for a
180-day period for the submission of such claims (in such manner as
prescribed by such Secretary) to begin not later than 30 days after
such guidance is issued. Such claims shall be paid by such Secretary
not later than 60 days after receipt. If such Secretary has not paid
pursuant to a claim filed under this subsection within 60 days after
the date of the filing of such claim, the claim shall be paid with
interest from such date determined by using the overpayment rate and
method under section 6621 of such Code.
Subtitle C--Energy Efficiency Incentives
SEC. 5031. CREDIT FOR NEW ENERGY EFFICIENT RESIDENTIAL BUILDINGS.
(a) In General.--Section 45L is amended to read as follows:
``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible contractor, the new energy efficient home credit for the
taxable year is the applicable amount for each qualified residence
which is--
``(1) constructed by the eligible contractor, and
``(2) acquired by a person from such eligible contractor
for use as a residence during the taxable year.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a), the
applicable amount shall be an amount equal to $1,500 increased
(but not above $3,000) by $100 for every 5 percentage points by
which the efficiency ratio for the qualified residence is
certified to be greater than 25 percent.
``(2) Efficiency ratio.--For purposes of this section, the
efficiency ratio of a qualified residence shall be equal to the
quotient, expressed as a percentage, obtained by dividing--
``(A) an amount equal to the difference between--
``(i) the annual level of energy
consumption of the qualified residence, and
``(ii) the annual level of energy
consumption of the baseline residence, by
``(B) the annual level of energy consumption of the
baseline residence.
``(3) Baseline residence.--For purposes of this section,
the baseline residence shall be a residence which is--
``(A) comparable to the qualified residence, and
``(B) constructed in accordance with the standards
of the 2015 International Energy Conservation Code, as
such Code (including supplements) is in effect on the
date of the enactment of the American Energy Innovation
Act.
``(c) Definitions.--For purposes of this section:
``(1) Eligible contractor.--The term `eligible contractor'
means--
``(A) the person who constructed the qualified
residence, or
``(B) in the case of a qualified residence which is
a manufactured home, the manufactured home producer of
such residence.
``(2) Qualified residence.--The term `qualified residence'
means a dwelling unit--
``(A) located in the United States,
``(B) the construction of which is substantially
completed after the date of the enactment of this
section, and
``(C) which is certified to have an annual level of
energy consumption that is less than the baseline
residence and an efficiency ratio of not less than 25
percent.
``(3) Construction.--The term `construction' does not
include substantial reconstruction or rehabilitation.
``(d) Certification.--
``(1) In general.--A certification described in this
section shall be made--
``(A) in accordance with guidance prescribed by,
and
``(B) by a third-party that is accredited by a
certification program approved by,
the Secretary, in consultation with the Secretary of Energy.
Such guidance shall specify procedures and methods for
calculating annual energy consumption levels, and shall include
requirements to ensure the safe operation of energy efficiency
improvements and that all improvements are installed according
to the applicable standards of such certification program.
``(2) Computer software.--
``(A) In general.--Any calculation under paragraph
(1) shall be prepared by qualified computer software.
``(B) Qualified computer software.--For purposes of
this paragraph, the term `qualified computer software'
means software--
``(i) for which the software designer has
certified that the software meets all
procedures and detailed methods for calculating
energy consumption levels as required by the
Secretary, and
``(ii) which provides such forms as
required to be filed by the Secretary in
connection with energy consumption levels and
the credit allowed under this section.
``(e) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
any property (other than a qualified low-income building, as described
in section 42(c)(2)), the increase in the basis of such property which
would (but for this subsection) result from such expenditure shall be
reduced by the amount of the credit so determined.
``(f) Coordination With Investment Credits.--For purposes of this
section, expenditures taken into account under section 25D or 47 shall
not be taken into account under this section.''.
(b) Effective Date.--The amendment made by this section shall apply
to any qualified residence acquired after December 31, 2017.
SEC. 5032. ENERGY EFFICIENCY CREDIT FOR EXISTING RESIDENTIAL BUILDINGS.
(a) In General.--Section 25C is amended to read as follows:
``SEC. 25C. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO RESIDENTIAL
BUILDINGS.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the lesser of--
``(1) the applicable amount for the qualified residence
based on energy efficiency improvements made by the taxpayer
and placed in service during such taxable year, or
``(2) 30 percent of the amount paid or incurred by the
taxpayer for energy efficiency improvements made to the
qualified residence that were placed in service during such
taxable year.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)(1), the
applicable amount shall be an amount equal to $1,750 increased
(but not above $6,500) by $300 for every 5 percentage points by
which the efficiency ratio for the qualified residence is
certified to be greater than 20 percent.
``(2) Efficiency ratio.--For purposes of this section, the
efficiency ratio of a qualified residence shall be equal to the
quotient, expressed as a percentage, obtained by dividing--
``(A) an amount equal to the difference between--
``(i) the projected annual level of energy
consumption of the qualified residence after
the energy efficiency improvements have been
placed in service, and
``(ii) the annual level of energy
consumption of such qualified residence prior
to the energy efficiency improvements being
placed in service, by
``(B) the annual level of energy consumption
described in subparagraph (A)(ii).
``(3) Coordination with credit for residential energy
efficient property.--For purposes of paragraph (2)(A), the
determination of the difference in annual levels of energy
consumption of the qualified residence shall not include any
reduction in net energy consumption related to qualified
property or energy storage property for which a credit was
allowed under section 25D.
``(c) Definitions.--For purposes of this section:
``(1) Qualified residence.--The term `qualified residence'
means a dwelling unit--
``(A) located in the United States,
``(B) owned and used by the taxpayer as the
taxpayer's principal residence (within the meaning of
section 121), and
``(C) which is certified to have--
``(i) a projected annual level of energy
consumption after the energy efficiency
improvements have been placed in service that
is less than the annual level of energy
consumption prior to the energy efficiency
improvements being placed in service, and
``(ii) an efficiency ratio of not less than
20 percent.
``(2) Energy efficiency improvements.--
``(A) In general.--The term `energy efficiency
improvements' means any property installed on or in a
dwelling unit which has been certified to reduce the
level of energy consumption for such unit or to provide
for onsite generation of electricity or useful thermal
energy, provided that--
``(i) the original use of such property
commences with the taxpayer, and
``(ii) such property reasonably can be
expected to remain in use for at least 5 years.
``(B) Amounts paid or incurred for energy
efficiency improvements.--For purposes of subsection
(a)(2), the amount paid or incurred by the taxpayer--
``(i) shall include expenditures for design
and for labor costs properly allocable to the
onsite preparation, assembly, or original
installation of the property, and
``(ii) shall not include any expenditures
related to expansion of the building envelope.
``(d) Special Rules.--For purposes of this section:
``(1) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures for energy efficiency
improvements of such corporation.
``(2) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which the individual
owns, such individual shall be treated as having made
the individual's proportionate share of any
expenditures for energy efficiency improvements of such
association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(3) Allocation in certain cases.--If less than 80 percent
of the use of a property is for nonbusiness purposes, only that
portion of the expenditures for energy efficiency improvements
for such property which is properly allocable to use for
nonbusiness purposes shall be taken into account.
``(e) Certification.--
``(1) In general.--A certification described in this
section shall be made--
``(A) in accordance with guidance prescribed by,
and
``(B) by a third-party that is accredited by a
certification program approved by,
the Secretary, in consultation with the Secretary of Energy.
Such guidance shall specify procedures and methods for
calculating annual energy consumption levels, with such
calculations to take into account onsite generation of
electricity or useful thermal energy, and shall include
requirements to ensure the safe operation of energy efficiency
improvements and that all improvements are installed according
to the applicable standards of such certification program.
``(2) Computer software.--
``(A) In general.--Any calculation under paragraph
(1) shall be prepared by qualified computer software.
``(B) Qualified computer software.--For purposes of
this paragraph, the term `qualified computer software'
has the same meaning given such term under section
45L(d)(2).
``(f) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditures with respect to any
energy efficiency improvements, the increase in the basis of such
property which would (but for this subsection) result from such
expenditures shall be reduced by the amount of the credit so allowed.
``(g) Coordination With Investment Credits.--For purposes of this
section, expenditures taken into account under section 25D or 47 shall
not be taken into account under this section.''.
(b) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amended by striking the item
relating to section 25C and inserting after the item relating to
section 25B the following item:
``Sec. 25C. Credit for energy efficiency improvements to residential
buildings.''.
(c) Effective Date.--The amendments made by this section shall
apply to any energy efficiency improvements placed in service after
December 31, 2017.
SEC. 5033. DEDUCTION FOR NEW ENERGY EFFICIENT COMMERCIAL BUILDINGS.
(a) In General.--Section 179D is amended to read as follows:
``SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDING DEDUCTION.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the applicable amount for each qualified building placed in
service by the taxpayer during the taxable year.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a), the
applicable amount shall be an amount equal to the product of--
``(A) the applicable dollar value, and
``(B) the square footage of the qualified building.
``(2) Applicable dollar value.--For purposes of paragraph
(1)(A), the applicable dollar value shall be an amount equal to
$1.00 increased (but not above $4.75) by $0.25 for every 5
percentage points by which the efficiency ratio for the
qualified building is certified to be greater than 25 percent.
``(3) Efficiency ratio.--For purposes of this section, the
efficiency ratio of a qualified building shall be equal to the
quotient, expressed as a percentage, obtained by dividing--
``(A) an amount equal to the difference between--
``(i) the annual level of energy
consumption of the qualified building, and
``(ii) the annual level of energy
consumption of the baseline building, by
``(B) the annual level of energy consumption of the
baseline building.
``(4) Baseline building.--For purposes of this section, the
baseline building shall be a building which--
``(A) is comparable to the qualified building, and
``(B) meets the minimum requirements of Standard
90.1-2013 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (as
in effect on December 31, 2014).
``(c) Qualified Building.--The term `qualified building' means a
building--
``(1) located in the United States,
``(2) which is owned by the taxpayer, and
``(3) which is certified to have an annual level of energy
consumption that is less than the baseline building and an
efficiency ratio of not less than 25 percent.
``(d) Allocation of Deduction.--
``(1) In general.--In the case of a qualified building
owned by an eligible entity, the Secretary shall promulgate
regulations to allow the allocation of the deduction to the
person primarily responsible for designing the property in lieu
of the owner of such property, with such person to be treated
as the taxpayer for purposes of this section.
``(2) Eligible entity.--For purposes of this subsection,
the term `eligible entity' means--
``(A) a Federal, State, or local government or a
political subdivision thereof,
``(B) an Indian tribe (as defined in section
45A(c)(6)), or
``(C) an organization described in section 501(c)
and exempt from tax under section 501(a).
``(e) Basis Adjustment.--For purposes of this subtitle, if a
deduction is allowed under this section with respect to any qualified
building, the basis of such property shall be reduced by the amount of
the deduction so allowed.
``(f) Certification.--
``(1) In general.--A certification described in this
section shall be made--
``(A) in accordance with guidance prescribed by,
and
``(B) by a third-party that is accredited by a
certification program approved by,
the Secretary, in consultation with the Secretary of Energy.
Such guidance shall specify procedures and methods for
calculating annual energy consumption levels, and shall include
requirements to ensure the safe operation of energy efficiency
improvements and that all improvements are installed according
to the applicable standards of such certification program.
``(2) Computer software.--
``(A) In general.--Any calculation under paragraph
(1) shall be prepared by qualified computer software.
``(B) Qualified computer software.--For purposes of
this paragraph, the term `qualified computer software'
means software--
``(i) for which the software designer has
certified that the software meets all
procedures and detailed methods for calculating
energy consumption levels as required by the
Secretary, and
``(ii) which provides such forms as
required to be filed by the Secretary in
connection with energy consumption levels and
the deduction allowed under this section.''.
(b) Conforming Amendment.--The table of sections for part VI of
subchapter B of chapter 1 is amended by striking the item relating to
section 179D and inserting after the item relating to section 179C the
following item:
``Sec. 179D. Energy efficient commercial building deduction.''.
(c) Effective Date.--The amendments made by this section shall
apply to any qualified building placed in service after December 31,
2017.
SEC. 5034. ENERGY EFFICIENCY DEDUCTION FOR EXISTING COMMERCIAL
BUILDINGS.
(a) In General.--Part VI of subchapter B of chapter 1 is amended by
inserting after section 179E the following new section:
``SEC. 179F. DEDUCTION FOR ENERGY EFFICIENCY IMPROVEMENTS TO COMMERCIAL
BUILDINGS.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the lesser of--
``(1) the applicable amount for the qualified building
based on energy efficiency improvements made by the taxpayer
and placed in service during the taxable year, or
``(2) 30 percent of the amount paid or incurred by the
taxpayer for energy efficiency improvements made to the
qualified building which were placed in service during the
taxable year.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a), the
applicable amount shall be an amount equal to the product of--
``(A) the applicable dollar value, and
``(B) the square footage of the qualified building.
``(2) Applicable dollar value.--For purposes of paragraph
(1), the applicable dollar value shall be an amount equal to
$1.25 increased (but not above $9.25) by $0.50 for every 5
percentage points by which the efficiency ratio for the
qualified building is certified to be greater than 20 percent.
``(3) Efficiency ratio.--For purposes of this section, the
efficiency ratio of a qualified building shall be equal to the
quotient, expressed as a percentage, obtained by dividing--
``(A) an amount equal to the difference between--
``(i) the projected annual level of energy
consumption of the qualified building after the
energy efficiency improvements have been placed
in service, and
``(ii) the annual level of energy
consumption of such qualified building prior to
the energy efficiency improvements being placed
in service, by
``(B) the annual level of energy consumption
described in subparagraph (A)(ii).
``(4) Coordination with clean energy investment credit.--
For purposes of paragraph (3)(A), the determination of the
difference in annual levels of energy consumption of the
qualified building shall not include any reduction in net
energy consumption related to qualified property or energy
storage property for which a credit was allowed under section
48E.
``(c) Definitions.--
``(1) Qualified building.--The term `qualified building'
means a building--
``(A) located in the United States,
``(B) which is owned by the taxpayer, and
``(C) which is certified to have--
``(i) a projected annual level of energy
consumption after the energy efficiency
improvements have been placed in service that
is less than the annual level of energy
consumption prior to the energy efficiency
improvements being placed in service, and
``(ii) an efficiency ratio of not less than
20 percent.
``(2) Energy efficiency improvements.--
``(A) In general.--The term `energy efficiency
improvements' means any property installed on or in a
qualified building which has been certified to reduce
the level of energy consumption for such building or to
increase onsite generation of electricity, provided
that depreciation (or amortization in lieu of
depreciation) is allowable with respect to such
property.
``(B) Amounts paid or incurred for energy
efficiency improvements.--For purposes of subsection
(a)(2), the amount paid or incurred by the taxpayer--
``(i) shall include expenditures for design
and for labor costs properly allocable to the
onsite preparation, assembly, or original
installation of the property, and
``(ii) shall not include any expenditures
related to expansion of the building envelope.
``(d) Certification.--
``(1) In general.--A certification described in this
section shall be made--
``(A) in accordance with guidance prescribed by,
and
``(B) by a third-party that is accredited by a
certification program approved by,
the Secretary, in consultation with the Secretary of Energy.
Such guidance shall specify procedures and methods for
calculating annual energy consumption levels, with such
calculations to take into account onsite generation of
electricity or useful thermal energy, and shall include
requirements to ensure the safe operation of energy efficiency
improvements and that all improvements are installed according
to the applicable standards of such certification program.
``(2) Computer software.--
``(A) In general.--Any calculation under paragraph
(1) shall be prepared by qualified computer software.
``(B) Qualified computer software.--For purposes of
this paragraph, the term `qualified computer software'
has the same meaning given such term under section
179D(f)(2).
``(e) Allocation of Deduction.--
``(1) In general.--In the case of a qualified building
owned by an eligible entity, the Secretary shall promulgate
regulations to allow the allocation of the deduction to the
person primarily responsible for designing the energy
efficiency improvements in lieu of the owner of such property,
with such person to be treated as the taxpayer for purposes of
this section.
``(2) Eligible entity.--For purposes of this subsection,
the term `eligible entity' has the same meaning given such term
under section 179D(d)(2).
``(f) Basis Reduction.--For purposes of this subtitle, if a
deduction is allowed under this section with respect to any energy
efficiency improvements, the basis of such property shall be reduced by
the amount of the deduction so allowed.
``(g) Coordination With Other Credits.--For purposes of this
section, expenditures taken into account under section 47 or 48E shall
not be taken into account under this section.''.
(b) Conforming Amendment.--
(1) Section 263(a) is amended--
(A) in subparagraph (K), by striking ``or'' at the
end,
(B) in subparagraph (L), by striking the period and
inserting ``, or'', and
(C) by inserting at the end the following new
subparagraph:
``(M) expenditures for which a deduction is allowed
under section 179F.''.
(2) Section 312(k)(3)(B) is amended--
(A) in the heading, by striking ``or 179e'' and
inserting ``179e, or 179f'', and
(B) by striking ``or 179E'' and inserting ``179E,
or 179F''.
(3) Section 1016(a) is amended--
(A) in paragraph (36), by striking ``and'' at the
end,
(B) in paragraph (37), by striking the period at
the end and inserting ``, and'', and
(C) by inserting at the end the following new
paragraph:
``(38) to the extent provided in section 179D(f).''.
(4) Section 1245(a) is amended--
(A) in paragraph (2)(C), by inserting ``179F,''
after ``179E,'', and
(B) in paragraph (3)(C), by inserting ``179F,''
after ``179E,''.
(5) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179E the following new item:
``Sec. 179F. Deduction for energy efficiency improvements to commercial
buildings.''.
(c) Effective Date.--The amendments made by this section shall
apply to any energy efficiency improvements placed in service after
December 31, 2017.
Subtitle D--Clean Electricity and Fuel Bonds
SEC. 5041. CLEAN ENERGY BONDS.
(a) In General.--Subpart J of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 54BB. CLEAN ENERGY BONDS.
``(a) In General.--If a taxpayer holds a clean energy bond on one
or more interest payment dates of the bond during any taxable year,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--The amount of the credit determined under
this subsection with respect to any interest payment date for a clean
energy bond is 28 percent of the amount of interest payable by the
issuer with respect to such date.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Clean Energy Bond.--
``(1) In general.--For purposes of this section, the term
`clean energy bond' means any bond issued as part of an issue
if--
``(A) 100 percent of the excess of the available
project proceeds (as defined in section 54A(e)(4)) of
such issue over the amounts in a reasonably required
reserve (within the meaning of section 150(a)(3)) with
respect to such issue are to be used for capital
expenditures incurred by an entity described in
subparagraph (B) for 1 or more qualified facilities,
``(B) the bond is issued by--
``(i) a governmental body (as defined in
paragraph (3) of section 54C(d)),
``(ii) a public power provider (as defined
in paragraph (2) of such section), or
``(iii) a cooperative electric company (as
defined in paragraph (4) of such section), and
``(C) the issuer makes an irrevocable election to
have this section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
``(A) for purposes of section 149(b), a clean
energy bond shall not be treated as federally
guaranteed by reason of the credit allowed under
subsection (a) or section 6433,
``(B) for purposes of section 148, the yield on a
clean energy bond shall be determined without regard to
the credit allowed under subsection (a), and
``(C) a bond shall not be treated as a clean energy
bond if the issue price has more than a de minimis
amount (determined under rules similar to the rules of
section 1273(a)(3)) of premium over the stated
principal amount of the bond.
``(3) Qualified facility.--The term `qualified facility'
means a facility--
``(A) which is described in subsection (e)(3) of
section 45S and has a greenhouse gas emissions rate of
less than 186 grams of CO<INF>2</INF>e per KWh (as such
terms are defined in subsections (b)(1) and (e)(1) of
such section), or
``(B) which is described in subsection (e)(4) of
section 45T and only produces transportation fuel which
has an emissions rate of less than 38.62 kilograms of
CO<INF>2</INF>e per mmBTU (as such terms are defined in
subsections (b) and (e) of such section).
``(e) Interest Payment Date.--For purposes of this section, the
term `interest payment date' means any date on which the holder of
record of the clean energy bond is entitled to a payment of interest
under such bond.
``(f) Credit Phase Out.--
``(1) Electrical production.--
``(A) In general.--Subject to subparagraph (B), in
the case of a clean energy bond for which the proceeds
are used for capital expenditures incurred by an entity
for a qualified facility described in subsection
(d)(3)(A), if the Secretary, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, determines that the
annual greenhouse gas emissions from electrical
production in the United States are equal to or less
than the percentage specified in section 45S(d)(1), the
amount of the credit determined under subsection (b)
with respect to any clean energy bond issued during a
calendar year described in paragraph (3) shall be equal
to the product of--
``(i) the amount determined under
subsection (b) without regard to this
subsection, multiplied by
``(ii) the phase-out percentage under
paragraph (3).
``(B) Deadline to begin phase-out.--If the
Secretary, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection
Agency, determines that the annual greenhouse gas
emissions from electrical production in the United
States for each year before calendar year 2026 are
greater than the percentage specified in section
45S(d)(1), then the determination described in
subparagraph (A) shall be deemed to have been made for
calendar year 2025.
``(2) Fuel production.--
``(A) In general.--Subject to subparagraph (B), in
the case of a clean energy bond for which the proceeds
are used for capital expenditures incurred by an entity
for a qualified facility described in subsection
(d)(3)(B), if the Secretary, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, determines that the
annual greenhouse gas emissions from transportation
fuel produced and sold at retail annually in the United
States are equal to or less than the percentage
specified in section 45T(d)(1), the amount of the
credit determined under subsection (b) with respect to
any clean energy bond issued during a calendar year
described in paragraph (3) shall be equal to the
product of--
``(i) the amount determined under
subsection (b) without regard to this
subsection, multiplied by
``(ii) the phase-out percentage under
paragraph (3).
``(B) Deadline to begin phase-out.--If the
Secretary, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection
Agency, determines that the annual greenhouse gas
emissions from transportation fuel produced and sold at
retail annually in the United States for each year
before calendar year 2026 are greater than the
percentage specified in section 45T(d)(1), then the
determination described in subparagraph (A) shall be
deemed to have been made for calendar year 2025.
``(3) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any bond issued during the first calendar
year following the calendar year in which the
determination described in paragraph (1)(A) or (2)(A)
is made, 75 percent,
``(B) for any bond issued during the second
calendar year following such determination year, 50
percent,
``(C) for any bond issued during the third calendar
year following such determination year, 25 percent, and
``(D) for any bond issued during any calendar year
subsequent to the year described in subparagraph (C), 0
percent.
``(g) Special Rules.--
``(1) Interest on clean energy bonds includible in gross
income for federal income tax purposes.--For purposes of this
title, interest on any clean energy bond shall be includible in
gross income.
``(2) Application of certain rules.--Rules similar to the
rules of subsections (f), (g), (h), and (i) of section 54A
shall apply for purposes of the credit allowed under subsection
(a).
``(h) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section and section 6433.''.
(b) Credit for Qualified Clean Energy Bonds Allowed to Issuer.--
Subchapter B of chapter 65 of subtitle F is amended by adding at the
end the following new section:
``SEC. 6433. CREDIT FOR QUALIFIED CLEAN ENERGY BONDS ALLOWED TO ISSUER.
``(a) In General.--The issuer of a qualified clean energy bond
shall be allowed a credit with respect to each interest payment under
such bond which shall be payable by the Secretary as provided in
subsection (b).
``(b) Payment of Credit.--
``(1) In general.--The Secretary shall pay
(contemporaneously with each interest payment date under such
bond) to the issuer of such bond (or to any person who makes
such interest payments on behalf of the issuer) 28 percent of
the interest payable under such bond on such date.
``(2) Interest payment date.--For purposes of this
subsection, the term `interest payment date' means each date on
which interest is payable by the issuer under the terms of the
bond.
``(c) Application of Arbitrage Rules.--For purposes of section 148,
the yield on a qualified clean energy bond shall be reduced by the
credit allowed under this section.
``(d) Qualified Clean Energy Bond.--For purposes of this section,
the term `qualified clean energy bond' means a clean energy bond (as
defined in section 54BB(d)) issued as part of an issue if the issuer,
in lieu of any credit allowed under section 54BB(a) with respect to
such bond, makes an irrevocable election to have this section apply.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart J of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54BB. Clean energy bonds.''.
(2) The heading of such subpart (and the item relating to
such subpart in the table of subparts for part IV of subchapter
A of chapter 1) are each amended by striking ``Build America
Bonds''and inserting ``Build America Bonds and Clean Energy
Bonds''.
(3) The table of sections for subchapter B of chapter 65 of
subtitle F is amended by adding at the end the following new
item:
``Sec. 6433. Credit for qualified clean energy bonds allowed to
issuer.''.
(4) Subparagraph (A) of section 6211(b)(4) is amended by
striking ``and 6431'' and inserting ``6431, and 6433''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
Subtitle E--Treatment of Tar Sands Under Excise Taxes
SEC. 5051. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR EXCISE TAX
PURPOSES.
(a) In General.--Paragraph (1) of section 4612(a) is amended to
read as follows:
``(1) Crude oil.--The term `crude oil' includes crude oil
condensates, natural gasoline, synthetic petroleum, any bitumen
or bituminous mixture, any oil derived from a bitumen or
bituminous mixture, and any oil derived from kerogen-bearing
sources.''.
(b) Technical Amendment.--Paragraph (2) of section 4612(a) is
amended by striking ``from a well located''.
(c) Effective Date.--The amendments made by this section shall
apply to oil and petroleum products received, entered, used, or
exported during calendar quarters beginning more than 60 days after the
date of the enactment of this Act.
Subtitle F--Closing Big Oil Tax Loopholes
SEC. 5061. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO
MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY
TAXPAYERS.
(a) In General.--Section 901 is amended by redesignating subsection
(n) as subsection (o) and by inserting after subsection (m) the
following new subsection:
``(n) Special Rules Relating to Major Integrated Oil Companies
Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (within the
meaning of section 167(h)(5)) to a foreign country or
possession of the United States for any period shall not be
considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity
taxpayer pursuant to the generally applicable
income tax imposed by the country or
possession, or
``(ii) would be paid if the generally
applicable income tax imposed by the country or
possession were applicable to such dual
capacity taxpayer.
Nothing in this paragraph shall be construed to imply the
proper treatment of any such amount not in excess of the amount
determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable
income tax' means an income tax (or a series of income
taxes) which is generally imposed under the laws of a
foreign country or possession on income derived from
the conduct of a trade or business within such country
or possession.
``(B) Exceptions.--Such term shall not include a
tax unless it has substantial application, by its terms
and in practice, to--
``(i) persons who are not dual capacity
taxpayers, and
``(ii) persons who are citizens or
residents of the foreign country or
possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning after
the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary to
any treaty obligation of the United States.
SEC. 5062. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL,
NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction.--Paragraph (4) of section 199(c) is
amended by adding at the end the following new subparagraph:
``(E) Special rule for certain oil and gas
income.--In the case of any taxpayer who is a major
integrated oil company (within the meaning of section
167(h)(5)) for the taxable year, the term `domestic
production gross receipts' shall not include gross
receipts from the production, refining, processing,
transportation, or distribution of oil, gas, or any
primary product (within the meaning of subsection
(d)(9)) thereof.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 5063. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED AMOUNTS.
(a) In General.--Section 263(c) is amended to read as follows:
``(c) Intangible Drilling and Development Costs in the Case of Oil
and Gas Wells and Geothermal Wells.--
``(1) In general.--Notwithstanding subsection (a), and
except as provided in subsection (i), regulations shall be
prescribed by the Secretary under this subtitle corresponding
to the regulations which granted the option to deduct as
expenses intangible drilling and development costs in the case
of oil and gas wells and which were recognized and approved by
the Congress in House Concurrent Resolution 50, Seventy-ninth
Congress. Such regulations shall also grant the option to
deduct as expenses intangible drilling and development costs in
the case of wells drilled for any geothermal deposit (as
defined in section 613(e)(2)) to the same extent and in the
same manner as such expenses are deductible in the case of oil
and gas wells. This subsection shall not apply with respect to
any costs to which any deduction is allowed under section 59(e)
or 291.
``(2) Exclusion.--
``(A) In general.--This subsection shall not apply
to amounts paid or incurred by a taxpayer in any
taxable year in which such taxpayer is a major
integrated oil company (within the meaning of section
167(h)(5)).
``(B) Amortization of amounts not allowable as
deductions under subparagraph (a).--The amount not
allowable as a deduction for any taxable year by reason
of subparagraph (A) shall be allowable as a deduction
ratably over the 60-month period beginning with the
month in which the costs are paid or incurred. For
purposes of section 1254, any deduction under this
subparagraph shall be treated as a deduction under this
subsection.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2015.
SEC. 5064. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS
WELLS.
(a) In General.--Section 613A is amended by adding at the end the
following new subsection:
``(f) Application With Respect to Major Integrated Oil Companies.--
In the case of any taxable year in which the taxpayer is a major
integrated oil company (within the meaning of section 167(h)(5)), the
allowance for percentage depletion shall be zero.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 5065. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.
(a) In General.--Section 193 is amended by adding at the end the
following new subsection:
``(d) Application With Respect to Major Integrated Oil Companies.--
``(1) In general.--This section shall not apply to amounts
paid or incurred by a taxpayer in any taxable year in which
such taxpayer is a major integrated oil company (within the
meaning of section 167(h)(5)).
``(2) Amortization of amounts not allowable as deductions
under paragraph (1).--The amount not allowable as a deduction
for any taxable year by reason of paragraph (1) shall be
allowable as a deduction ratably over the 60-month period
beginning with the month in which the costs are paid or
incurred.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2015.
TITLE VI--CONSERVATION REAUTHORIZATION
SEC. 6001. NATIONAL PARK SERVICE CENTENNIAL FUND.
(a) In General.--Chapter 1049 of title 54, United States Code, is
amended by adding at the end the following:
``Sec. 104908. National Park Service Centennial Fund
``(a) In General.--There is established in the Treasury a fund, to
be known as the `National Park Service Centennial Fund' (referred to in
this section as the `Fund').
``(b) Deposits to Fund.--Notwithstanding any provision of law
providing that the proceeds shall be credited to miscellaneous receipts
of the Treasury, for each fiscal year, there shall be deposited in the
Fund, from revenues due and payable to the United States under section
9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338),
$150,000,000.
``(c) Availability.--Amounts deposited in the Fund shall be made
available for expenditure, without further appropriation or fiscal year
limitation, in accordance with this section.
``(d) Use of Fund.--The Secretary shall use amounts in the Fund for
critical National Park System maintenance and infrastructure needs and
other projects and programs that will better enable the National Park
Service to protect park resources and provide improved visitor
services.
``(e) Land Acquisition Prohibition.--Amounts in the Fund shall not
be used for land acquisition.''.
(b) Clerical Amendment.--The table of sections for chapter 1049 of
title 54, United States Code, is amended by inserting after the item
relating to section 104907 the following:
``Sec. 104908. National Park Service Centennial Fund.''.
SEC. 6002. LAND AND WATER CONSERVATION FUND.
(a) Permanent Authorization.--Section 200302 of title 54, United
States Code, is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``During the period ending September 30, 2015,
there'' and inserting ``There''; and
(2) in subsection (c)--
(A) in paragraph (1), by striking ``through
September 30, 2015''; and
(3) by striking paragraph (3).
(b) Full Funding.--Section 200303 of title 54, United States Code,
is amended to read as follows:
``Sec. 200303. Availability of funds
``(a) In General.--Amounts deposited in the Fund under section
200302 on or after the date of enactment of the American Energy
Innovation Act shall be made available for expenditure, without further
appropriation or fiscal year limitation, to carry out the purposes of
the Fund (including accounts and programs made available from the Fund
under the Consolidated and Further Continuing Appropriations Act, 2015
(Public Law 113-235)).
``(b) Additional Amounts.--Amounts made available under subsection
(a) shall be in addition to amounts made available to the Fund under
section 105 of the Gulf of Mexico Energy Security Act of 2006 (43
U.S.C. 1331 note; Public Law 109-432) or otherwise appropriated from
the Fund.
``(c) Allocation Authority.--
``(1) Submission of cost estimates.--The President shall
submit to Congress detailed account, program, and project
allocations to be funded under subsection (a) as part of the
annual budget submission of the President.
``(2) Alternate allocation.--
``(A) In general.--Appropriations Acts may provide
for alternate allocation of amounts made available
under subsection (a), including allocations by account
and program.
``(B) Allocation by president.--
``(i) No alternate allocations.--If
Congress has not enacted legislation
establishing alternate allocations by the date
that is 120 days after the date on which the
applicable fiscal year begins, amounts made
available under subsection (a) shall be
allocated by the President.
``(ii) Insufficient alternate allocation.--
If Congress enacts legislation establishing
alternate allocations for amounts made
available under subsection (a) that are less
than the full amount appropriated under that
subsection, the difference between the amount
appropriated and the alternate allocation shall
be allocated by the President.
``(3) Annual report.--The President shall submit to
Congress an annual report that describes the final allocation
by account, program, and project of amounts made available
under subsection (a), including a description of the status of
obligations and expenditures.''.
(c) Clerical Amendment.--The table of sections for title 54 is
amended by striking the item relating to section 200303 and inserting
the following:
``Sec. 200303. Availability of funds.''.
(d) Public Access.--Section 200306 of title 54, United States Code,
is amended by adding at the end the following:
``(c) Public Access.--Not less than 1.5 percent of the annual
authorized funding amount shall be made available each year for
projects that secure recreational public access to existing Federal
public land for hunting, fishing, or other recreational purposes.''.
SEC. 6003. HISTORIC PRESERVATION FUND.
(a) Authorization.--Section 303102 of title 54, United States Code,
is amended by striking ``of fiscal years 2012 to 2015'' and inserting
``fiscal year''.
(b) Use and Availability.--Section 303103 of title 54, United
States Code, is amended by striking the first sentence and inserting
the following: ``Amounts deposited in the Historic Preservation Fund on
or after the date of enactment of the American Energy Innovation Act
shall only be used to carry out this division and shall be available
for expenditure without further appropriation.''.
Calendar No. 241
114th CONGRESS
1st Session
S. 2089
_______________________________________________________________________
A BILL
To provide for investment in clean energy, to empower and protect
consumers, to modernize energy infrastructure, to cut pollution and
waste, to invest in research and development, and for other purposes.
_______________________________________________________________________
September 29, 2015
Read the second time and placed on the calendar