Text: S.1460 — 115th Congress (2017-2018)All Information (Except Text)

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Placed on Calendar Senate (06/29/2017)

Calendar No. 162

115th CONGRESS
1st Session
S. 1460


To provide for the modernization of the energy and natural resources policies of the United States, and for other purposes.


IN THE SENATE OF THE UNITED STATES

June 28, 2017

Ms. Murkowski (for herself and Ms. Cantwell) introduced the following bill; which was read the first time

June 29, 2017

Read the second time and placed on the calendar


A BILL

To provide for the modernization of the energy and natural resources policies of the United States, 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.

This Act may be cited as the “Energy and Natural Resources Act of 2017”.

SEC. 2. Organization of Act into divisions; table of contents.

(a) Divisions.—This Act is organized into 2 divisions as follows:

(1) DIVISION A.—Energy.

(2) DIVISION B.—Natural Resources.

(b) Table of contents.—The table of contents for this Act is as follows:


Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 1001. Definitions.

Sec. 1101. Greater energy efficiency in building codes.

Sec. 1102. Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units.

Sec. 1103. Coordination of energy retrofitting assistance for schools.

Sec. 1104. Energy efficiency materials pilot program.

Sec. 1105. Utility energy service contracts.

Sec. 1106. Use of energy and water efficiency measures in Federal buildings.

Sec. 1107. Building training and assessment centers.

Sec. 1108. Career skills training.

Sec. 1109. Energy-efficient and energy-saving information technologies.

Sec. 1110. Energy efficient data centers.

Sec. 1111. Weatherization Assistance Program.

Sec. 1112. Reauthorization of State energy program.

Sec. 1113. Smart building acceleration.

Sec. 1114. Repeal of fossil phase-out.

Sec. 1115. Federal building energy efficiency performance standards.

Sec. 1116. Federal building energy intensity improvement.

Sec. 1117. Certification for green buildings.

Sec. 1118. High-performance green Federal buildings.

Sec. 1119. Evaluation of potentially duplicative green building programs.

Sec. 1120. Study and report on energy savings benefits of operational efficiency programs and services.

Sec. 1121. Use of Federal disaster relief and emergency assistance for energy-efficient products and structures.

Sec. 1122. WaterSense.

Sec. 1201. Extended product system rebate program.

Sec. 1202. Energy efficient transformer rebate program.

Sec. 1203. Third-party certification under Energy Star program.

Sec. 1204. Application of energy conservation standards to certain external power supplies.

Sec. 1205. Clarification to effective date for regional standards.

Sec. 1206. Modifying product definitions.

Sec. 1207. Clarifying rulemaking procedures.

Sec. 1208. Extension of nonapplication of no-load mode energy efficiency standard to certain security or life safety alarm or surveillance systems.

Sec. 1301. Manufacturing energy efficiency.

Sec. 1302. Leveraging existing Federal agency programs to assist small and medium manufacturers.

Sec. 1303. Leveraging smart manufacturing infrastructure at National Laboratories.

Sec. 1401. Objectives.

Sec. 1402. Coordination and nonduplication.

Sec. 1403. Authorization of appropriations.

Sec. 1404. Reporting.

Sec. 1411. Program.

Sec. 1412. Manufacturing.

Sec. 1421. Program.

Sec. 1422. Class 8 truck and trailer systems demonstration.

Sec. 1423. Technology testing and metrics.

Sec. 1424. Nonroad systems pilot program.

Sec. 1431. Repeal of existing authorities.

Sec. 1432. Reauthorization of diesel emissions reduction program.

Sec. 1433. Gaseous fuel dual fueled automobiles.

Sec. 1501. Definitions.

Sec. 1502. Enhanced energy efficiency underwriting criteria.

Sec. 1503. Enhanced energy efficiency underwriting valuation guidelines.

Sec. 1504. Monitoring.

Sec. 1505. Rulemaking.

Sec. 1506. Additional study.

TITLE II—INFRASTRUCTURE

Subtitle A—Cybersecurity


Sec. 2001. Sanctions for disclosure of critical electric infrastructure information.

Sec. 2002. Enhanced grid security.

Subtitle B—Strategic Petroleum Reserve


Sec. 2101. Strategic petroleum reserve drawdown and sale.

Subtitle C—Trade


Sec. 2201. Action on applications to export liquefied natural gas.

Sec. 2202. Public disclosure of liquefied natural gas export destinations.

Subtitle D—Electricity


Sec. 2301. Grid storage program.

Sec. 2302. Electric grid architecture, scenario development, and modeling.

Sec. 2303. Hybrid micro-grid systems for isolated and resilient communities.

Sec. 2304. Voluntary model pathways.

Sec. 2305. Performance metrics for electricity infrastructure providers.

Sec. 2306. Voluntary State, regional, and local electricity distribution planning.

Sec. 2307. Authorization of appropriations.

Sec. 2308. Power marketing administration agreements.

Sec. 2309. Report by transmission organizations on distributed energy resources and interconnected micro-grid systems.

Sec. 2310. Vegetation management, facility inspection, and operation and maintenance on Federal land containing electric transmission and distribution facilities.

Sec. 2311. Study of combined heat and power systems and waste heat to power systems.

Sec. 2312. Bulk-power system reliability impact statement.

Sec. 2313. Report by transmission organizations on diversity of supply.

Sec. 2314. Technology demonstration on the distribution system.

TITLE III—SUPPLY

Subtitle A—Renewables

PART I—HYDROELECTRIC


Sec. 3001. Federal Power Act amendments.

Sec. 3002. Evaluation of expedited licensing for qualified project upgrades.

Sec. 3003. Regulations to establish a 2-year process for certain nonpowered dams and closed-loop pumped storage projects.

Sec. 3004. Regionwide pilot program.

Sec. 3005. Pumped storage hydropower.

Sec. 3006. Annual reports.

Sec. 3007. Synchronization of hydroelectric licensing processes of the Bureau of Reclamation and the Federal Energy Regulatory Commission.

Sec. 3008. Federal Energy Regulatory Commission projects.

Sec. 3009. Study of surrender or transfer of licenses for nonpowered sites.

Sec. 3010. Hydroelectric production incentives and efficiency improvements.

PART II—GEOTHERMAL


Sec. 3011. Geothermal energy.

Sec. 3012. Geothermal exploration test projects.

PART III—MARINE HYDROKINETIC


Sec. 3021. Definition of marine and hydrokinetic renewable energy.

Sec. 3022. Marine and hydrokinetic renewable energy research and development.

Sec. 3023. National Marine Renewable Energy Research, Development, and Demonstration Centers.

Sec. 3024. Authorization of appropriations.

PART IV—THERMAL ENERGY


Sec. 3031. Modifying the definition of renewable energy to include thermal energy.

Subtitle B—Oil and Gas


Sec. 3101. Methane hydrate research and development.

Sec. 3102. Liquefied natural gas study.

Sec. 3103. FERC process coordination.

Sec. 3104. Department of the Interior pilot program.

Sec. 3105. GAO review and report.

Sec. 3106. Ethane storage study.

Sec. 3107. Report on incorporating Internet-based lease sales.

Subtitle C—Helium


Sec. 3201. Rights to helium.

Subtitle D—Critical Minerals


Sec. 3301. Definitions.

Sec. 3302. Policy.

Sec. 3303. Critical mineral designations.

Sec. 3304. Resource assessment.

Sec. 3305. Permitting.

Sec. 3306. Federal Register process.

Sec. 3307. Recycling, efficiency, and alternatives.

Sec. 3308. Analysis and forecasting.

Sec. 3309. Education and workforce.

Sec. 3310. National geological and geophysical data preservation program.

Sec. 3311. Administration.

Sec. 3312. Authorization of appropriations.

Subtitle E—Fossil Energy


Sec. 3401. Fossil energy.

Sec. 3402. Establishment of coal technology program.

Sec. 3403. Report on carbon dioxide capture contracting authority.

Subtitle F—Nuclear


Sec. 3501. Nuclear energy innovation capabilities.

Sec. 3502. Next generation nuclear plant project.

Subtitle G—Workforce Development


Sec. 3601. 21st Century Energy Workforce Advisory Board.

Sec. 3602. Energy workforce pilot grant program.

Subtitle H—Recycling


Sec. 3701. Recycled carbon fiber.

Sec. 3702. Energy generation and regulatory relief study regarding recovery and conversion of nonrecycled mixed plastics.

Sec. 3703. Eligible projects.

TITLE IV—ACCOUNTABILITY

Subtitle A—Loan programs


Sec. 4001. Terms and conditions for incentives for innovative technologies.

Sec. 4002. State loan eligibility.

Sec. 4003. Fees for loans.

Sec. 4004. Department of Energy Indian energy education planning and management assistance program.

Subtitle B—Energy-Water nexus


Sec. 4101. Nexus of energy and water for sustainability.

Sec. 4102. Smart energy and water efficiency pilot program.

Subtitle C—Innovation and Office of Science

PART I—INNOVATION


Sec. 4201. Inclusion of early stage technology demonstration in authorized technology transfer activities.

Sec. 4202. Sense of Congress on accelerating energy innovation.

Sec. 4203. Restoration of laboratory directed research and development program.

Sec. 4204. Research grants database.

Sec. 4205. Technology transfer and transitions assessment.

Sec. 4206. Agreements for commercializing technology pilot program.

Sec. 4207. Short-term cost-share pilot program.

Sec. 4208. Quadrennial energy review.

Sec. 4209. Crosscutting research and development.

Sec. 4210. Strategic research portfolio analysis and coordination plan.

Sec. 4211. Strategy for facilities and infrastructure.

Sec. 4212. Energy Innovation Hubs.

Sec. 4213. Advanced Research Projects Agency–Energy.

PART II—OFFICE OF SCIENCE


Sec. 4221. Mission of the Office of Science.

Sec. 4222. Basic energy sciences.

Sec. 4223. Advanced scientific computing research.

Sec. 4224. High-energy physics.

Sec. 4225. Biological and environmental research.

Sec. 4226. Fusion energy.

Sec. 4227. Nuclear physics.

Sec. 4228. Science laboratories infrastructure program.

Sec. 4229. Basic research.

Subtitle D—Management


Sec. 4301. Bureau of Land Management cooperation with States on rules and processes.

Sec. 4302. Under Secretary for Science and Energy.

Sec. 4303. Energy emergency response efforts of the Department.

Sec. 4304. Program to reduce the potential impacts of solar energy facilities on certain species.

Subtitle E—Markets


Sec. 4401. Enhanced information on critical energy supplies.

Sec. 4402. Working Group on Energy Markets.

Sec. 4403. Study of regulatory framework for energy markets.

Subtitle F—Affordability


Sec. 4501. E-prize competition pilot program.

Sec. 4502. Carbon dioxide capture technology prize.

Subtitle G—Code maintenance


Sec. 4601. Repeal of off-highway motor vehicles study.

Sec. 4602. Repeal of methanol study.

Sec. 4603. Repeal of authorization of appropriations provision.

Sec. 4604. Repeal of residential energy efficiency standards study.

Sec. 4605. Repeal of weatherization study.

Sec. 4606. Repeal of report to Congress.

Sec. 4607. Repeal of report by General Services Administration.

Sec. 4608. Repeal of intergovernmental energy management planning and coordination workshops.

Sec. 4609. Repeal of Inspector General audit survey and President's Council on Integrity and Efficiency report to Congress.

Sec. 4610. Repeal of procurement and identification of energy efficient products program.

Sec. 4611. Repeal of national action plan for demand response.

Sec. 4612. Repeal of national coal policy study.

Sec. 4613. Repeal of study on compliance problem of small electric utility systems.

Sec. 4614. Repeal of study of socioeconomic impacts of increased coal production and other energy development.

Sec. 4615. Repeal of study of the use of petroleum and natural gas in combustors.

Sec. 4616. Repeal of submission of reports.

Sec. 4617. Repeal of electric utility conservation plan.

Sec. 4618. Emergency Energy Conservation repeals.

Sec. 4619. Energy Security Act repeals.

Sec. 4620. Nuclear Safety Research, Development, and Demonstration Act of 1980 repeals.

Sec. 4621. Elimination and consolidation of certain America COMPETES programs.

Sec. 4622. Repeal of state utility regulatory assistance.

Sec. 4623. Repeal of survey of energy saving potential.

Sec. 4624. Repeal of photovoltaic energy program.

Sec. 4625. Repeal of energy auditor training and certification.

Sec. 4626. Repeal of authorization of appropriations.

Sec. 4627. Repeal of Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989.

Sec. 4628. Repeal of hydrogen research, development, and demonstration program.

Sec. 4629. Repeal of study on alternative fuel use in nonroad vehicles and engines.

Sec. 4630. Repeal of low interest loan program for small business fleet purchases.

Sec. 4631. Repeal of technical and policy analysis for replacement fuel demand and supply information.

Sec. 4632. Repeal of 1992 Report on Climate Change.

Sec. 4633. Repeal of Director of Climate Protector establishment.

Sec. 4634. Repeal of 1994 report on global climate change emissions.

Sec. 4635. Repeal of telecommuting study.

Sec. 4636. Repeal of advanced buildings for 2005 program.

Sec. 4637. Repeal of Energy Research, Development, Demonstration, and Commercial Application Advisory Board.

Sec. 4638. Repeal of study on use of energy futures for fuel purchase.

Sec. 4639. Repeal of energy subsidy study.

Sec. 4640. Repeal of prior limitation on compensation of the Secretary of the Interior.

DIVISION B—NATURAL RESOURCES


Sec. 5001. Definitions.

TITLE V—CONSERVATION AUTHORIZATIONS


Sec. 5101. National Park Service Maintenance and Revitalization Conservation Fund.

Sec. 5102. Land and Water Conservation Fund.

Sec. 5103. Historic Preservation Fund.

Sec. 5104. Conservation incentives landowner education program.

TITLE VI—LAND CONVEYANCES AND RELATED MATTERS

Subtitle A—Land conveyances


Sec. 6001. Arapaho National Forest boundary adjustment.

Sec. 6002. Land conveyance, Elkhorn Ranch and White River National Forest, Colorado.

Sec. 6003. Crags, Colorado land exchange.

Sec. 6004. Clarification relating to a certain land description under the Northern Arizona Land Exchange and Verde River Basin Partnership Act of 2005.

Sec. 6005. Cooper Spur land exchange clarification amendments.

Sec. 6006. Black Hills National Cemetery boundary modification.

Sec. 6007. Cow Creek Umpqua land conveyance.

Sec. 6008. Oregon coastal land.

Sec. 6009. Amendments to Coquille Restoration Act.

Sec. 6010. Conveyance of Federal land within the Swan Lake hydroelectric project boundary.

Sec. 6011. Pascua Yaqui Tribe land conveyance.

Subtitle B—Land management


Sec. 6101. Cadastre of Federal real property.

Sec. 6102. Additional authority for sale or exchange of small parcels of National Forest System land.

Sec. 6103. Bolts ditch access.

Sec. 6104. Designation of Alex Diekmann Peak, Montana.

Sec. 6105. Methow Valley, Washington, Federal land withdrawal.

Sec. 6106. Frank and Jeanne Moore Wild Steelhead Special Management Area, Oregon.

Sec. 6107. Expedited access to certain Federal land.

Sec. 6108. Maintenance or replacement of facilities and structures at Smith Gulch.

Sec. 6109. Cerro del Yuta and Río San Antonio Wilderness Areas.

Sec. 6110. Additions to Cherokee National Forest Wilderness Areas.

TITLE VII—NATIONAL PARK SYSTEM MANAGEMENT, STUDIES, AND RELATED MATTERS

Subtitle A—Special Resource Studies


Sec. 7001. Special resource study of James K. Polk presidential home.

Sec. 7002. Special resource study of Fort Ontario.

Subtitle B—National Park Service Management and Related Matters


Sec. 7101. Ocmulgee Mounds National Historical Park boundary revision.

Sec. 7102. John Muir National Historic Site land acquisition.

Sec. 7103. Amendment to Coltsville National Historical Park donation site.

Sec. 7104. Kennesaw Mountain National Battlefield Park boundary adjustment; land acquisition; administration.

Sec. 7105. Designation of existing wilderness area in Lake Clark National Park as the Jay S. Hammond Wilderness.

Sec. 7106. Sky Point mountain designation.

Sec. 7107. Eligibility of Hispanic-serving institutions and Asian American and Native American Pacific Islander-serving institutions for assistance for preservation education and training programs.

Sec. 7108. Martin Luther King, Jr. National Historical Park.

Sec. 7109. Vehicular access and fees at Delaware Water Gap National Recreation Area.

Sec. 7110. Denali National Park and Preserve natural gas pipeline.

Sec. 7111. Wild horses in and around the Currituck National Wildlife Refuge.

Sec. 7112. Lower Farmington and Salmon Brook recreational rivers.

Sec. 7113. East Rosebud Wild and Scenic Rivers designation.

Sec. 7114. Arlington Ridge Visitor Services Facility.

Sec. 7115. Rockingham County, Virginia, removal of use restriction.

Sec. 7116. Interagency transfer of land along George Washington Memorial Parkway.

Sec. 7117. Shiloh National Military Park boundary modification.

Sec. 7118. Historically Black Colleges and Universities Historic Preservation Program reauthorized.

Sec. 7119. Fort Frederica National Monument boundary adjustment.

Sec. 7120. Redesignation of Robert Emmet Park.

Sec. 7121. Designation of the National Memorial to Fallen Educators.

Sec. 7122. African American Civil Rights Network.

Sec. 7123. 400 Years of African-American History Commission.

Sec. 7124. Modification of Voyageurs National Park boundary.

Sec. 7125. North Country National Scenic Trail route adjustment.

Sec. 7126. National emergency medical services commemorative work.

Sec. 7127. National heritage area designations.

Sec. 7128. Adjustment of boundaries of Lincoln National Heritage Area.

Sec. 7129. Finger lakes national heritage area study.

Sec. 7130. Modification of the Second Division Memorial.

Sec. 7131. Florissant Fossil Beds National Monument boundary adjustment.

Sec. 7132. Fort Scott National Historic Site boundary modification.

Sec. 7133. Gulf Islands National Seashore land exchange.

Sec. 7134. Ste. Genevieve National Historical Park.

Sec. 7135. Bows in parks.

Sec. 7136. Wildlife management in parks.

TITLE VIII—SPORTSMEN'S ACCESS AND RELATED MATTERS

Subtitle A—National policy


Sec. 8001. Congressional declaration of national policy.

Subtitle B—Sportsmen’s access to Federal land


Sec. 8101. Definitions.

Sec. 8102. Federal land open to hunting, fishing, and recreational shooting.

Sec. 8103. Closure of Federal land to hunting, fishing, and recreational shooting.

Sec. 8104. Shooting ranges.

Sec. 8105. Federal action transparency.

Sec. 8106. Identifying opportunities for recreation, hunting, and fishing on Federal land.

Sec. 8107. Firearms at water resource development projects.

Subtitle C—Federal Land Transaction Facilitation Act


Sec. 8201. Amendments to the Federal Land Transaction Facilitation Act.

Subtitle D—Filming on Federal Land Management Agency land


Sec. 8301. Commercial filming.

Subtitle E—Wildlife and habitat conservation


Sec. 8401. Amendments to Pittman-Robertson Wildlife Restoration Act.

Sec. 8402. Wildlife and Hunting Heritage Conservation Council Advisory Committee.

Sec. 8403. North American Wetlands Conservation Act.

Sec. 8404. Fishing tackle.

Subtitle F—Miscellaneous


Sec. 8501. Respect for treaties and rights.

Sec. 8502. No priority.

Sec. 8503. State authority for fish and wildlife.

TITLE IX—WATER INFRASTRUCTURE AND RELATED MATTERS

Subtitle A—Fontenelle Reservoir


Sec. 9001. Authority to make entire active capacity of Fontenelle Reservoir available for use.

Sec. 9002. Savings provisions.

Subtitle B—Bureau of Reclamation Transparency


Sec. 9101. Definitions.

Sec. 9102. Asset management report enhancements for reserved works.

Sec. 9103. Asset management report enhancements for transferred works.

Sec. 9104. Offset.

Subtitle C—Yakima River Basin Water Enhancement


Sec. 9201. Short title.

Sec. 9202. Modification of terms, purposes, and definitions.

Sec. 9203. Yakima River Basin Water Conservation Program.

Sec. 9204. Yakima Basin water projects, operations, and authorizations.

Sec. 9205. Authorization of Phase III of Yakima River Basin Water Enhancement Project.

Subtitle D—Klamath Project Water and Power


Sec. 9301. Klamath Project.

Subtitle E—Equus Beds Division Extension


Sec. 9401. Equus Beds Division extension.

TITLE X—NATURAL HAZARDS

Subtitle A—National volcano early warning and monitoring system


Sec. 10001. Definitions.

Sec. 10002. National volcano early warning and monitoring system.

Sec. 10003. Funding.

Subtitle B—National landslide hazards reduction program


Sec. 10101. Definitions.

Sec. 10102. National landslide hazards reduction program.

Sec. 10103. Ground subsidence.

Sec. 10104. 3D Elevation Program.

TITLE XI—INDIAN ENERGY

Subtitle A—Indian Tribal Energy Development and Self-Determination Act amendments


Sec. 11001. Indian tribal energy resource development.

Sec. 11002. Indian tribal energy resource regulation.

Sec. 11003. Tribal energy resource agreements.

Sec. 11004. Technical assistance for Indian tribal governments.

Sec. 11005. Conforming amendments.

Sec. 11006. Report.

Subtitle B—Miscellaneous amendments


Sec. 11101. Issuance of preliminary permits or licenses.

Sec. 11102. Tribal biomass demonstration project.

Sec. 11103. Weatherization program.

Sec. 11104. Appraisals.

Sec. 11105. Leases of restricted lands for Navajo Nation.

Sec. 11106. Extension of tribal lease period for the Crow Tribe of Montana.

Sec. 11107. Trust status of lease payments.

SEC. 1001. Definitions.

In this division:

(1) DEPARTMENT.—The term “Department” means the Department of Energy.

(2) SECRETARY.—The term “Secretary” means the Secretary of Energy.

SEC. 1101. Greater energy efficiency in building codes.

(a) Definitions.—Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) is amended—

(1) in paragraph (14), by inserting “, or its legal successor, International Code Council, Inc.” after “the Council of American Building Officials”; and

(2) by adding at the end the following:

“(17) IECC.—The term ‘IECC’ means the International Energy Conservation Code.

“(18) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).”.

(b) State building energy efficiency codes.—Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:

“SEC. 304. Updating State building energy efficiency codes.

“(a) Voluntary building energy code.—Nothing in this section or section 307 makes a voluntary building energy code established under this section or an updated voluntary building energy code under section 307 binding on a State, local government, or Indian tribe as a matter of Federal law.

“(b) In general.—The Secretary shall—

“(1) encourage and support the adoption of building energy codes by States, Indian tribes, and, as appropriate, by local governments that meet or exceed the voluntary building energy codes, or achieve equivalent or greater energy savings; and

“(2) support full compliance with the State and local codes.

“(c) State and Indian tribe certification of building energy code updates.—

“(1) REVIEW AND UPDATING OF CODES BY EACH STATE AND INDIAN TRIBE.—

“(A) IN GENERAL.—Not later than 2 years after the date on which a voluntary building energy code is updated, each State or Indian tribe shall certify whether or not the State or Indian tribe, respectively, has reviewed and updated the energy provisions of the building code of the State or Indian tribe, respectively.

“(B) DEMONSTRATION.—The certification shall include a demonstration of whether or not the energy savings for the code provisions that are in effect throughout the State or Indian tribal territory meet or exceed—

“(i) the energy savings of the updated voluntary building energy code; or

“(ii) the consensus-based targets established under section 307(b)(2).

“(C) NO MODEL BUILDING ENERGY CODE UPDATE.—If a model building energy code is not updated by a target date established under section 307(b)(2)(D), each State or Indian tribe shall, not later than 2 years after the specified date, certify whether or not the State or Indian tribe, respectively, has reviewed and updated the energy provisions of the building code of the State or Indian tribe, respectively, to meet or exceed the target in section 307(b)(2).

“(2) VALIDATION BY SECRETARY.—Not later than 90 days after a State or Indian tribe certification under paragraph (1), the Secretary shall—

“(A) determine whether the code provisions of the State or Indian tribe, respectively, meet the criteria specified in paragraph (1); and

“(B) if the determination is positive, validate the certification.

“(d) Improvements in compliance with building energy codes.—

“(1) REQUIREMENT.—Not later than 3 years after the date of a certification under subsection (c), each State and Indian tribe shall certify whether or not the State and Indian tribe, respectively, has—

“(A) achieved full compliance under paragraph (3) with the applicable certified State and Indian tribe building energy code or with the associated voluntary building energy code; or

“(B) made significant progress under paragraph (4) toward achieving compliance with the applicable certified State and Indian tribe building energy code or with the associated voluntary building energy code.

“(2) MEASUREMENT OF COMPLIANCE.—A certification under paragraph (1) shall include documentation of the rate of compliance based on—

“(A) independent inspections of a random sample of the buildings covered by the code in the preceding year; or

“(B) an alternative method that yields an accurate measure of compliance.

“(3) ACHIEVEMENT OF COMPLIANCE.—A State or Indian tribe shall be considered to achieve full compliance under paragraph (1) if—

“(A) at least 90 percent of building space covered by the code in the preceding year substantially meets all the requirements of the applicable code specified in paragraph (1), or achieves equivalent or greater energy savings level; or

“(B) the estimated excess energy use of buildings that did not meet the applicable code specified in paragraph (1) in the preceding year, compared to a baseline of comparable buildings that meet this code, is not more than 5 percent of the estimated energy use of all buildings covered by this code during the preceding year.

“(4) SIGNIFICANT PROGRESS TOWARD ACHIEVEMENT OF COMPLIANCE.—A State or Indian tribe shall be considered to have made significant progress toward achieving compliance for purposes of paragraph (1) if the State or Indian tribe—

“(A) has developed and is implementing a plan for achieving compliance during the 8-year-period beginning on the date of enactment of this paragraph, including annual targets for compliance and active training and enforcement programs; and

“(B) has met the most recent target under subparagraph (A).

“(5) VALIDATION BY SECRETARY.—Not later than 90 days after a State or Indian tribe certification under paragraph (1), the Secretary shall—

“(A) determine whether the State or Indian tribe has demonstrated meeting the criteria of this subsection, including accurate measurement of compliance; and

“(B) if the determination is positive, validate the certification.

“(e) States or Indian tribes that do not achieve compliance.—

“(1) REPORTING.—A State or Indian tribe that has not made a certification required under subsection (c) or (d) by the applicable deadline shall submit to the Secretary a report on the status of the State or Indian tribe with respect to meeting the requirements and submitting the certification.

“(2) FEDERAL SUPPORT.—For any State or Indian tribe for which the Secretary has not validated a certification by a deadline under subsection (c) or (d), the lack of the certification may be a consideration for Federal support authorized under this section for technical assistance.

“(3) LOCAL GOVERNMENT.—In any State or Indian tribe for which the Secretary has not validated a certification under subsection (c) or (d), a local government may be eligible for Federal support by meeting the certification requirements of subsections (c) and (d).

“(4) ANNUAL REPORTS BY SECRETARY.—

“(A) IN GENERAL.—The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on—

“(i) the status of voluntary building energy codes;

“(ii) the status of code adoption and compliance in the States and Indian tribes;

“(iii) the implementation of this section; and

“(iv) improvements in energy savings over time as a result of the targets established under section 307(b)(2).

“(B) IMPACTS.—The report shall include estimates of impacts of past action under this section, and potential impacts of further action, on—

“(i) upfront financial and construction costs, cost benefits and returns (using investment analysis), and lifetime energy use for buildings;

“(ii) resulting energy costs to individuals and businesses; and

“(iii) resulting overall annual building ownership and operating costs.

“(f) Technical assistance to States and Indian tribes.—The Secretary shall provide technical assistance to States and Indian tribes to implement this section, including procedures and technical analysis for States and Indian tribes—

“(1) to improve and implement State residential and commercial building energy codes;

“(2) to demonstrate that the code provisions of the States and Indian tribes achieve equivalent or greater energy savings than the voluntary building energy codes and targets;

“(3) to document the rate of compliance with a building energy code; and

“(4) to otherwise promote the design and construction of energy efficient buildings.

“(g) Availability of incentive funding.—

“(1) IN GENERAL.—The Secretary shall provide incentive funding to States and Indian tribes—

“(A) to implement this section;

“(B) to improve and implement residential and commercial building energy codes, including increasing and verifying compliance with the codes and training of State, local, and tribal building code officials, or other entities identified by the Secretary; and

“(C) to promote building energy efficiency through the use of the codes.

“(2) ADDITIONAL FUNDING.—Additional funding may be provided under this subsection for implementation of a plan to achieve and document full compliance with residential and commercial building energy codes under subsection (d)—

“(A) to a State or Indian tribe for which the Secretary has validated a certification under subsection (c) or (d); and

“(B) in a State or Indian tribe that is not eligible under subparagraph (A), to a local government that is eligible under this section.

“(3) TRAINING.—Of the amounts made available under this subsection, the State or Indian tribe may use amounts required, but not to exceed $750,000 for a State or tribe, to train State, tribal, and local building code officials, or other entities identified by the Secretary.

“(4) LOCAL GOVERNMENTS.—States may share grants under this subsection with local governments.

“(h) Studies.—The Secretary, in consultation with building science experts from the National Laboratories and institutions of higher education, designers and builders of energy-efficient residential and commercial buildings, code officials, and other stakeholders, shall undertake a study of the feasibility, impact, economics, and merit of—

“(1) code improvements that would require that buildings be designed, sited, and constructed in a manner that makes the buildings more adaptable in the future to become zero-net-energy after initial construction, as advances are achieved in energy-saving technologies;

“(2) code procedures that adopt energy efficiency measures that are technologically feasible and economically justified; and

“(3) legislative options for increasing energy savings from building energy codes, including additional incentives for effective State and local action, and verification of compliance with and enforcement of a code other than by a State or local government.

“(i) Effect on other laws.—Nothing in this section or section 307 supersedes or modifies the application of sections 321 through 346 of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.).

“(j) Authorization of appropriations.—There is authorized to be appropriated to carry out this section and section 307 $200,000,000, to remain available until expended.”.

(c) Voluntary building energy codes.—Section 307 of the Energy Conservation and Production Act (42 U.S.C. 6836) is amended to read as follows:

“SEC. 307. Support for voluntary building energy codes.

“(a) In general.—The Secretary shall support the updating of voluntary building energy codes.

“(b) Targets.—

“(1) IN GENERAL.—The Secretary shall support the updating of the voluntary building energy codes to enable the achievement of consensus-based, aggregate energy savings targets established under paragraph (2).

“(2) TARGETS.—

“(A) IN GENERAL.—The Secretary shall work with States, local governments, and Indian tribes, nationally recognized code and standards developers, and other interested parties to support the updating of voluntary building energy codes by establishing one or more consensus-based, aggregate energy savings targets to achieve the purposes of this section.

“(B) SEPARATE TARGETS.—The Secretary may establish separate consensus-based targets for commercial and residential buildings.

“(C) BASELINES.—The baseline for updating voluntary building energy codes shall be the 2009 IECC for residential buildings and ASHRAE Standard 90.1–2010 for commercial buildings.

“(D) SPECIFIC YEARS.—

“(i) IN GENERAL.—Consensus-based targets for specific years shall be established and revised by the Secretary through rulemaking and coordinated with nationally recognized code and standards developers at a level that—

“(I) is at the maximum level of energy efficiency that is technologically feasible and economically justified;

“(II) is higher than the preceding target; and

“(III) promotes the achievement of commercial and residential high-performance buildings through high-performance energy efficiency (within the meaning of section 401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17061)).

“(ii) INITIAL TARGETS.—Not later than 1 year after the date of enactment of this clause, the Secretary shall establish initial consensus-based targets under this subparagraph.

“(iii) DIFFERENT TARGET YEARS.—Subject to clause (i), prior to the applicable year, the Secretary may set a later target year for any of the voluntary building energy codes described in subparagraph (A) if the Secretary determines that a consensus-based target cannot be met.

“(iv) SMALL BUSINESS.—When establishing consensus-based targets under this paragraph through rulemaking, the Secretary shall ensure compliance with the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note; Public Law 104–121).

“(3) APPLIANCE STANDARDS AND OTHER FACTORS AFFECTING BUILDING ENERGY USE.—In establishing consensus-based building code targets under paragraph (2), the Secretary shall develop and adjust the targets in recognition of potential savings and costs relating to—

“(A) efficiency gains made in appliances, lighting, windows, insulation, and building envelope sealing;

“(B) advancement of distributed generation and on-site renewable power generation technologies;

“(C) equipment improvements for heating, cooling, and ventilation systems;

“(D) building management systems and SmartGrid technologies to reduce energy use; and

“(E) other technologies, practices, and building systems that the Secretary considers appropriate regarding building plug load and other energy uses.

“(c) Technical assistance to voluntary building energy code-setting and standard development organizations.—

“(1) IN GENERAL.—The Secretary shall, on a timely basis, provide technical assistance to voluntary building energy code-setting and standard development organizations consistent with the goals of this section.

“(2) ASSISTANCE.—The assistance shall include, as requested by the organizations, technical assistance in—

“(A) evaluating code or standards proposals or revisions;

“(B) building energy analysis and design tools;

“(C) building demonstrations;

“(D) developing definitions of energy use intensity and building types for use in voluntary building energy codes to evaluate the efficiency impacts of the voluntary building energy codes;

“(E) performance-based standards;

“(F) evaluating economic considerations; and

“(G) developing voluntary building energy codes by Indian tribes in accordance with tribal law.

“(3) AMENDMENT PROPOSALS.—The Secretary may submit timely voluntary building energy code amendment proposals to the voluntary building energy code-setting and standard development organizations, with supporting evidence, sufficient to enable the voluntary building energy codes to meet the consensus-based targets established under subsection (b)(2).

“(4) ANALYSIS METHODOLOGY.—The Secretary shall make publicly available the entire calculation methodology (including input assumptions and data) used by the Secretary to estimate the energy savings of code or standard proposals and revisions.

“(d) Determination.—

“(1) REVISION OF VOLUNTARY BUILDING ENERGY CODES.—If the provisions of the IECC or ASHRAE Standard 90.1 regarding building energy use are revised, the Secretary shall make a preliminary determination not later than 90 days after the date of the revision, and a final determination not later than 15 months after the date of the revision, on whether or not the revision will—

“(A) improve energy efficiency in buildings compared to the existing voluntary building energy code; and

“(B) meet the applicable consensus-based targets under subsection (b)(2).

“(2) CODES OR STANDARDS NOT MEETING CONSENSUS-BASED TARGETS.—

“(A) IN GENERAL.—If the Secretary makes a determination under paragraph (1)(B) that a code or standard does not meet the consensus-based targets established under subsection (b)(2), the Secretary may at the same time provide the voluntary building energy code or standard developer with proposed changes that would result in a voluntary building energy code that meets the consensus-based targets and with supporting evidence, taking into consideration—

“(i) whether the modified code is technologically feasible and economically justified;

“(ii) available appliances, technologies, materials, and construction practices; and

“(iii) economic considerations.

“(B) INCORPORATION OF CHANGES.—On receipt of the proposed changes, the voluntary building energy code or standard developer shall have an additional 270 days to accept or reject the proposed changes of the Secretary to the voluntary building energy code or standard for the Secretary to make a final determination.

“(e) Administration.—In carrying out this section, the Secretary shall—

“(1) publish notice of consensus-based targets and supporting analysis and determinations under this section in the Federal Register to provide an explanation of and the basis for such actions, including any supporting modeling, data, assumptions, protocols, and cost-benefit analysis, including return on investment; and

“(2) provide an opportunity for public comment on proposed consensus-based targets and supporting analysis and determinations under this section.

“(f) Definition of economically justified.—As used in this section, in determining whether a voluntary building energy code established under section 304 or an updated voluntary building energy code under this section is ‘economically justified,’ the Secretary shall, after receiving views and comments furnished with respect to a proposed voluntary building code or an updated voluntary building energy code, determine whether the benefits of the building energy code exceed its burdens by, to the greatest extent practicable, considering—

“(1) the economic impact of the building energy code on the manufacturers and on the home or building owners subject to such code;

“(2) the savings in operating costs throughout the estimated average life of the building compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered buildings which are likely to result from the imposition of the building energy code;

“(3) the total projected amount of energy, or as applicable, water, savings likely to result directly from the imposition of the building energy code;

“(4) any reduction or increase of the utility or the performance of the covered buildings likely to result from the imposition of the building energy code;

“(5) the need for national energy and water conservation; and

“(6) other facts the Secretary considers relevant.”.

SEC. 1102. Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units.

(a) Establishment.—The Secretary of Housing and Urban Development (referred to in this section as the “Secretary”) shall establish a demonstration program under which, during the period beginning on the date of enactment of this Act, and ending on September 30, 2020, the Secretary may enter into budget-neutral, performance-based agreements that result in a reduction in energy or water costs with such entities as the Secretary determines to be appropriate under which the entities shall carry out projects for energy or water conservation improvements at not more than 20,000 residential units in multifamily buildings participating in—

(1) the project-based rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), other than assistance provided under section 8(o) of that Act;

(2) the supportive housing for the elderly program under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or

(3) the supportive housing for persons with disabilities program under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)).

(b) Requirements.—

(1) PAYMENTS CONTINGENT ON SAVINGS.—

(A) IN GENERAL.—The Secretary shall provide to an entity a payment under an agreement under this section only during applicable years for which an energy or water cost savings is achieved with respect to the applicable multifamily portfolio of properties, as determined by the Secretary, in accordance with subparagraph (B).

(B) PAYMENT METHODOLOGY.—

(i) IN GENERAL.—Each agreement under this section shall include a pay-for-success provision—

(I) that will serve as a payment threshold for the term of the agreement; and

(II) pursuant to which the Department of Housing and Urban Development shall share a percentage of the savings at a level determined by the Secretary that is sufficient to cover the administrative costs of carrying out this section.

(ii) LIMITATIONS.—A payment made by the Secretary under an agreement under this section shall—

(I) be contingent on documented utility savings; and

(II) not exceed the utility savings achieved by the date of the payment, and not previously paid, as a result of the improvements made under the agreement.

(C) THIRD PARTY VERIFICATION.—Savings payments made by the Secretary under this section shall be based on a measurement and verification protocol that includes at least—

(i) establishment of a weather-normalized and occupancy-normalized utility consumption baseline established preretrofit;

(ii) annual third party confirmation of actual utility consumption and cost for owner-paid utilities;

(iii) annual third party validation of the tenant utility allowances in effect during the applicable year and vacancy rates for each unit type; and

(iv) annual third party determination of savings to the Secretary.

(2) TERM.—The term of an agreement under this section shall be not longer than 12 years.

(3) ENTITY ELIGIBILITY.—The Secretary shall—

(A) establish a competitive process for entering into agreements under this section; and

(B) enter into such agreements only with entities that demonstrate significant experience relating to—

(i) financing and operating properties receiving assistance under a program described in subsection (a);

(ii) oversight of energy and water conservation programs, including oversight of contractors; and

(iii) raising capital for energy and water conservation improvements from charitable organizations or private investors.

(4) GEOGRAPHICAL DIVERSITY.—Each agreement entered into under this section shall provide for the inclusion of properties with the greatest feasible regional and State variance.

(c) Plan and reports.—

(1) PLAN.—Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Natural Resources of the Senate, and the Committee on Energy and Commerce of the House of Representatives a detailed plan for the implementation of this section.

(2) REPORTS.—Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary shall—

(A) conduct an evaluation of the program under this section; and

(B) submit to Congress a report describing each evaluation conducted under subparagraph (A).

(d) Funding.—For each fiscal year during which an agreement under this section is in effect, the Secretary may use to carry out this section any funds appropriated to the Secretary for the renewal of contracts under a program described in subsection (a).

SEC. 1103. Coordination of energy retrofitting assistance for schools.

(a) Definition of school.—In this section, the term “school” means—

(1) an elementary school or secondary school (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801));

(2) an institution of higher education (as defined in section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a));

(3) a school of the defense dependents’ education system under the Defense Dependents’ Education Act of 1978 (20 U.S.C. 921 et seq.) or established under section 2164 of title 10, United States Code;

(4) a school operated by the Bureau of Indian Affairs;

(5) a tribally controlled school (as defined in section 5212 of the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2511)); and

(6) an institution of higher education eligible to receive funds under section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)).

(b) Designation of lead agency.—The Secretary, acting through the Office of Energy Efficiency and Renewable Energy, shall act as the lead Federal agency for coordinating and disseminating information on existing Federal programs and assistance that may be used to help initiate, develop, and finance energy efficiency, renewable energy, and energy retrofitting projects for schools.

(c) Requirements.—In carrying out coordination and outreach under subsection (b), the Secretary shall—

(1) in consultation and coordination with the appropriate Federal agencies, carry out a review of existing programs and financing mechanisms (including revolving loan funds and loan guarantees) available in or from the Department of Agriculture, the Department, the Department of Education, the Department of the Treasury, the Internal Revenue Service, the Environmental Protection Agency, and other appropriate Federal agencies with jurisdiction over energy financing and facilitation that are currently used or may be used to help initiate, develop, and finance energy efficiency, renewable energy, and energy retrofitting projects for schools;

(2) establish a Federal cross-departmental collaborative coordination, education, and outreach effort to streamline communication and promote available Federal opportunities and assistance described in paragraph (1) for energy efficiency, renewable energy, and energy retrofitting projects that enables States, local educational agencies, and schools—

(A) to use existing Federal opportunities more effectively; and

(B) to form partnerships with Governors, State energy programs, local educational, financial, and energy officials, State and local government officials, nonprofit organizations, and other appropriate entities to support the initiation of the projects;

(3) provide technical assistance for States, local educational agencies, and schools to help develop and finance energy efficiency, renewable energy, and energy retrofitting projects—

(A) to increase the energy efficiency of buildings or facilities;

(B) to install systems that individually generate energy from renewable energy resources;

(C) to establish partnerships to leverage economies of scale and additional financing mechanisms available to larger clean energy initiatives; or

(D) to promote—

(i) the maintenance of health, environmental quality, and safety in schools, including the ambient air quality, through energy efficiency, renewable energy, and energy retrofit projects; and

(ii) the achievement of expected energy savings and renewable energy production through proper operations and maintenance practices;

(4) develop and maintain a single online resource website with contact information for relevant technical assistance and support staff in the Office of Energy Efficiency and Renewable Energy for States, local educational agencies, and schools to effectively access and use Federal opportunities and assistance described in paragraph (1) to develop energy efficiency, renewable energy, and energy retrofitting projects; and

(5) establish a process for recognition of schools that—

(A) have successfully implemented energy efficiency, renewable energy, and energy retrofitting projects; and

(B) are willing to serve as resources for other local educational agencies and schools to assist initiation of similar efforts.

(d) Report.—Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the implementation of this section.

SEC. 1104. Energy efficiency materials 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 MATERIALS.—

(A) IN GENERAL.—The term “energy-efficiency materials” means a measure (including a product, equipment, or system) 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 materials” includes an item involving—

(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 materials needed to serve a more efficient system); and

(v) a renewable energy generation or heating system, including a solar, photovoltaic, wind, geothermal, or biomass (including wood pellet) system or component of the system.

(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 providing nonprofit buildings with energy-efficiency materials.

(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 use of energy-efficiency materials;

(C) an effective plan for evaluation, measurement, and verification of energy savings; and

(D) the financial need of the applicant.

(4) LIMITATION ON INDIVIDUAL GRANT AMOUNT.—Each grant awarded under this section shall not exceed $200,000.

(d) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2018 through 2022, to remain available until expended.

SEC. 1105. Utility energy service contracts.

Section 546 of the National Energy Conservation Policy Act (42 U.S.C. 8256) is amended by adding at the end the following:

“(f) Utility energy service contracts.—

“(1) 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 authorized by subsection (c).

“(2) CONTRACT PERIOD.—The term of a utility energy service contract entered into by a Federal agency may have a contract period not to exceed 25 years.

“(3) NOTIFICATION.—The Secretary shall make available on a public website the guidance and criteria regarding the conditions of utility energy service contracts.”.

SEC. 1106. Use of energy and water efficiency measures in Federal buildings.

(a) Energy management requirements.—Section 543(f)(4) of the National Energy Conservation Policy Act (42 U.S.C. 8253(f)(4)) is amended by striking “may” and inserting “shall”.

(b) Reports.—Section 548(b) of the National Energy Conservation Policy Act (42 U.S.C. 8258(b)) is amended—

(1) in paragraph (3), by striking “and” at the end;

(2) in paragraph (4), by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(5) (A) the status of the energy savings performance contracts and utility energy service contracts of each agency;

“(B) the investment value of the contracts;

“(C) the guaranteed energy savings for the previous year as compared to the actual energy savings for the previous year;

“(D) the plan for entering into the contracts in the coming year; and

“(E) information explaining why any previously submitted plans for the contracts were not implemented.”.

(c) Definition of energy conservation measures.—Section 551(4) of the National Energy Conservation Policy Act (42 U.S.C. 8259(4)) is amended by striking “or retrofit activities” and inserting “retrofit activities, or energy consuming devices and required support structures”.

(d) Authority To enter into contracts.—Section 801(a)(2)(F) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(F)) is amended—

(1) in clause (i), by striking “or” at the end;

(2) in clause (ii), by striking the period at the end and inserting “; or”; and

(3) by adding at the end the following:

“(iii) limit the recognition of operation and maintenance savings associated with systems modernized or replaced with the implementation of energy conservation measures, water conservation measures, or any combination of energy conservation measures and water conservation measures.”.

(e) Miscellaneous authority.—Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the end the following:

“(H) MISCELLANEOUS AUTHORITY.—Notwithstanding any other provision of law, a Federal agency may sell or transfer energy savings and apply the proceeds of the sale or transfer to fund a contract under this title.”.

(f) Payment of costs.—Section 802 of the National Energy Conservation Policy Act (42 U.S.C. 8287a) is amended by striking “(and related operation and maintenance expenses)” and inserting “, including related operations and maintenance expenses”.

(g) Definition of Federal building.—Section 551(6) of the National Energy Conservation Policy Act (42 U.S.C. 8259(6)) is amended by striking the semicolon at the end and inserting “the term does not include a dam, reservoir, or hydropower facility owned or operated by a Federal agency;”.

(h) Definition of energy savings.—Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended—

(1) in subparagraph (A), by striking “federally owned building or buildings or other federally owned facilities” and inserting “Federal building (as defined in section 551)” each place it appears;

(2) in subparagraph (C), by striking “; and” and inserting a semicolon;

(3) in subparagraph (D), by striking the period at the end and inserting a semicolon; and

(4) by adding at the end the following:

“(E) the use, sale, or transfer of energy incentives, rebates, or credits (including renewable energy credits) from Federal, State, or local governments or utilities; and

“(F) any revenue generated from a reduction in energy or water use, more efficient waste recycling, or additional energy generated from more efficient equipment.”.

SEC. 1107. Building training and assessment centers.

(a) In general.—The Secretary shall provide grants to institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) and institutions of higher education eligible to receive funds under section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)) (referred to in this section as “minority-serving institutions”) to establish building training and assessment centers—

(1) to identify opportunities for optimizing energy efficiency and associated environmental, health and safety, and productivity performance in buildings;

(2) to promote the application of emerging concepts and technologies in commercial and institutional buildings;

(3) to train engineers, architects, building scientists, building energy permitting and enforcement officials, and building technicians in energy-efficient design and operation;

(4) to assist institutions of higher education and minority-serving institutions in training building technicians;

(5) to promote research and development for the use of alternative energy sources and distributed generation to supply heat and power for buildings, particularly energy-intensive buildings; and

(6) to coordinate with and assist State-accredited technical training centers, community colleges, minority-serving institutions, and local offices of the National Institute of Food and Agriculture and ensure appropriate services are provided under this section to each region of the United States.

(b) Coordination and nonduplication.—

(1) IN GENERAL.—The Secretary shall coordinate the program with the industrial research and assessment centers program and with other Federal programs to avoid duplication of effort.

(2) COLLOCATION.—To the maximum extent practicable, building, training, and assessment centers established under this section shall be collocated with Industrial Assessment Centers.

(c) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.

SEC. 1108. Career skills training.

(a) In general.—The Secretary shall pay grants to eligible entities described in subsection (b) to pay the Federal share of associated career skills training programs under which students concurrently receive classroom instruction and on-the-job training for the purpose of obtaining an industry-related certification to install energy efficient buildings technologies, including technologies described in section 307(b)(3) of the Energy Conservation and Production Act (42 U.S.C. 6836(b)(3)).

(b) Eligibility.—To be eligible to obtain a grant under subsection (a), an entity shall be a nonprofit partnership that—

(1) includes the equal participation of industry, including public or private employers, and labor organizations, including joint labor-management training programs, and may include workforce investment boards, community-based organizations, qualified service and conservation corps, educational institutions, small businesses, cooperatives, State and local veterans agencies, and veterans service organizations; and

(2) demonstrates—

(A) experience in implementing and operating worker skills training and education programs;

(B) the ability to identify and involve in training programs carried out under the grant, target populations of individuals who would benefit from training and be actively involved in activities related to energy efficiency and renewable energy industries; and

(C) the ability to help individuals achieve economic self-sufficiency.

(c) Federal share.—The Federal share of the cost of carrying out a career skills training program described in subsection (a) shall be 50 percent.

(d) Authorization of Appropriations.—There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.

SEC. 1109. Energy-efficient and energy-saving information technologies.

(a) Amendment.—Subtitle C of title V of the Energy Independence and Security Act of 2007 (Public Law 110–140; 121 Stat. 1661) is amended by adding at the end the following:

“SEC. 530. Energy-efficient and energy-saving information technologies.

“(a) Definitions.—In this section:

“(1) DIRECTOR.—The term ‘Director’ means the Director of the Office of Management and Budget.

“(2) INFORMATION TECHNOLOGY.—The term ‘information technology’ has the meaning given that term in section 11101 of title 40, United States Code.

“(b) Development of implementation strategy.—Not later than 1 year after the date of enactment of this section, each Federal agency shall coordinate with the Director, the Secretary, and the Administrator of the Environmental Protection Agency to develop an implementation strategy (that includes best practices and measurement and verification techniques) for the maintenance, purchase, and use by the Federal agency of energy-efficient and energy-saving information technologies, taking into consideration the performance goals established under subsection (d).

“(c) Administration.—In developing an implementation strategy under subsection (b), each Federal agency shall consider—

“(1) advanced metering infrastructure;

“(2) energy-efficient data center strategies and methods of increasing asset and infrastructure utilization;

“(3) advanced power management tools;

“(4) building information modeling, including building energy management;

“(5) secure telework and travel substitution tools; and

“(6) mechanisms to ensure that the agency realizes the energy cost savings brought about through increased efficiency and utilization.

“(d) Performance goals.—

“(1) IN GENERAL.—Not later than 180 days after the date of enactment of this section, the Director, in consultation with the Secretary, shall establish performance goals for evaluating the efforts of Federal agencies in improving the maintenance, purchase, and use of energy-efficient and energy-saving information technology.

“(2) BEST PRACTICES.—The Chief Information Officers Council established under section 3603 of title 44, United States Code, shall recommend best practices for the attainment of the performance goals, which shall include Federal agency consideration of, to the extent applicable by law, the use of—

“(A) energy savings performance contracting; and

“(B) utility energy services contracting.

“(e) Reports.—

“(1) AGENCY REPORTS.—Each Federal agency shall include in the report of the agency under section 527 a description of the efforts and results of the agency under this section.

“(2) OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.—Effective beginning not later than October 1, 2017, the Director shall include in the annual report and scorecard of the Director required under section 528 a description of the efforts and results of Federal agencies under this section.”.

(b) Conforming amendment.—The table of contents for the Energy Independence and Security Act of 2007 is amended by adding after the item relating to section 529 the following:


“Sec. 530. Energy-efficient and energy-saving information technologies.”.

SEC. 1110. Energy efficient data centers.

Section 453 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112) is amended—

(1) in subsection (b)(2)(D)(iv), by striking “determined by the organization” and inserting “proposed by the stakeholders”;

(2) by striking subsection (b)(3); and

(3) by striking subsections (c) through (g) and inserting the following:

“(c) Stakeholder involvement.—The Secretary and the Administrator shall carry out subsection (b) in collaboration with the information technology industry and other key stakeholders, with the goal of producing results that accurately reflect the most relevant and useful information available. In such collaboration, the Secretary and the Administrator shall pay particular attention to organizations that—

“(1) have members with expertise in energy efficiency and in the development, operation, and functionality of data centers, information technology equipment, and software, such as representatives of hardware manufacturers, data center operators, and facility managers;

“(2) obtain and address input from Department of Energy National Laboratories or any college, university, research institution, industry association, company, or public interest group with applicable expertise;

“(3) follow—

“(A) commonly accepted procedures for the development of specifications; and

“(B) accredited standards development processes; and

“(4) have a mission to promote energy efficiency for data centers and information technology.

“(d) Measurements and specifications.—The Secretary and the Administrator shall consider and assess the adequacy of the specifications, measurements, best practices, and benchmarks described in subsection (b) for use by the Federal Energy Management Program, the Energy Star Program, and other efficiency programs of the Department of Energy or the Environmental Protection Agency.

“(e) Study.—The Secretary, in collaboration with the Administrator, shall, not later than 4 years after the date of enactment of the Energy and Natural Resources Act of 2017, make available to the public a second update to the Report to Congress on Server and Data Center Energy Efficiency published on August 2, 2007, under section 1 of Public Law 109–431 (120 Stat. 2920), that provides—

“(1) a comparison and gap analysis of the estimates and projections contained in the original report and the first update with new data regarding the period from 2015 through 2019;

“(2) an analysis of the energy saving and social impact of information technologies, including virtualization, the internet of things, and cloud computing, in the public and private sectors;

“(3) an evaluation of the impact of the combination of cloud platforms, mobile devices, social media, big data, and other newly emerging technologies on data center energy usage;

“(4) an evaluation of water usage in data centers and recommendations for reductions in such water usage; and

“(5) updated projections and recommendations for best practices through fiscal year 2025.

“(f) Data center energy practitioner program.—The Secretary, in collaboration with key stakeholders and the Director of the Office of Management and Budget, shall maintain a data center energy practitioner program that leads to the certification of energy practitioners qualified to evaluate the energy usage and efficiency opportunities in Federal data centers. Each Federal agency shall consider having the data centers of the agency evaluated every 4 years, in accordance with section 543(f) of the National Energy Conservation Policy Act (42 U.S.C. 8253), by energy practitioners certified pursuant to such program.

“(g) Open data initiative.—The Secretary, in collaboration with key stakeholders and the Director of the Office of Management and Budget, shall establish an open data initiative for Federal data center energy usage data, with the purpose of making such data available and accessible in a manner that encourages further data center innovation, optimization, and consolidation. In establishing the initiative, the Secretary shall consider the use of the online Data Center Maturity Model.

“(h) International specifications and metrics.—The Secretary, in collaboration with key stakeholders, shall actively participate in efforts to harmonize global specifications and metrics for data center energy and water efficiency.

“(i) Data center utilization metric.—The Secretary, in collaboration with key stakeholders, shall facilitate the development of an efficiency metric that measures the energy efficiency of a data center (including equipment and facilities).

“(j) Protection of proprietary information.—The Secretary and the Administrator shall not disclose any proprietary information or trade secrets provided by any individual or company for the purposes of carrying out this section or the programs and initiatives established under this section.”.

SEC. 1111. Weatherization Assistance Program.

(a) 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 $350,000,000 for each of fiscal years 2018 through 2022.”.

(b) Grants for new, self-sustaining low-income, single-family and multifamily housing energy retrofit model programs to eligible multistate 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 multistate 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 2018 through 2022 under section 422, the Secretary shall use to carry out this section for each of fiscal years 2018 through 2022 not more than—

“(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; and

“(3) 10 percent of the amount if the amount is $260,000,000 or more.”.

(c) 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, 2017, 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, 2017, 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. 1112. 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 “$90,000,000 for each of fiscal years 2018 through 2022, of which not greater than 5 percent may be used to provide competitively awarded financial assistance”.

SEC. 1113. Smart building acceleration.

(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;

(E) protects the health and safety of occupants and workers; and

(F) 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, in consultation with the Administrator of General Services, 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 and the Committee on Science, Space, and Technology 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.

SEC. 1114. Repeal of fossil phase-out.

Section 305(a)(3) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)) is amended by striking subparagraph (D).

SEC. 1115. Federal building energy efficiency performance standards.

(a) Definitions.—Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) (as amended by section 1101(a)) is amended—

(1) in paragraph (6), by striking “to be constructed” and inserting “constructed or altered”; and

(2) by adding at the end the following:

“(19) MAJOR RENOVATION.—The term ‘major renovation’ means a modification of building energy systems sufficiently extensive that the whole building can meet energy standards for new buildings, based on criteria to be established by the Secretary through notice and comment rulemaking.”.

(b) Federal building efficiency standards.—Section 305(a)(3) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)) (as amended by section 1114) is amended—

(1) by striking “(3)(A) Not later than” and all that follows through subparagraph (B) and inserting the following:

“(3) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.—

“(A) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.—

“(i) IN GENERAL.—Not later than 1 year after the date of enactment of the Energy and Natural Resources Act of 2017, the Secretary shall establish, by rule, revised Federal building energy efficiency performance standards that require that—

“(I) new Federal buildings and alterations and additions to existing Federal buildings—

“(aa) meet or exceed the most recent revision of the International Energy Conservation Code (in the case of residential buildings) or ASHRAE Standard 90.1 (in the case of commercial buildings) as of the date of enactment of the Energy and Natural Resources Act of 2017; and

“(bb) meet or exceed the energy provisions of State and local building codes applicable to the building, if the codes are more stringent than the International Energy Conservation Code or ASHRAE Standard 90.1, as applicable;

“(II) unless demonstrated not to be life-cycle cost effective for new Federal buildings and Federal buildings with major renovations—

“(aa) the buildings be designed to achieve energy consumption levels that are at least 30 percent below the levels established in the version of the ASHRAE Standard or the International Energy Conservation Code, as appropriate, that is applied under subclause (I)(aa), including updates under subparagraph (B); and

“(bb) sustainable design principles are applied to the location, siting, design, and construction of all new Federal buildings and replacement Federal buildings;

“(III) if water is used to achieve energy efficiency, water conservation technologies shall be applied to the extent that the technologies are life-cycle cost effective; and

“(IV) if life-cycle cost effective, as compared to other reasonably available technologies, not less than 30 percent of the hot water demand for each new Federal building or Federal building undergoing a major renovation be met through the installation and use of solar hot water heaters.

“(ii) LIMITATION.—Clause (i)(I) shall not apply to unaltered portions of existing Federal buildings and systems that have been added to or altered.

“(B) UPDATES.—Not later than 1 year after the date of approval of each subsequent revision of the ASHRAE Standard or the International Energy Conservation Code, as appropriate, the Secretary shall determine whether the revised standards established under subparagraph (A) should be updated to reflect the revisions, based on the energy savings and life-cycle cost-effectiveness of the revisions.”; and

(2) in subparagraph (C), by striking “(C) In the budget request” and inserting the following:

“(C) BUDGET REQUEST.—In the budget request”.

SEC. 1116. Federal building energy intensity improvement.

Beginning in fiscal year 2018 and each fiscal year thereafter through fiscal year 2027, the head of each Federal agency shall, unless otherwise specified and where life-cycle cost-effective, promote building energy conservation, efficiency, and management by reducing, in Federal buildings of the agency, building energy intensity, as measured in British thermal units per gross square foot, by 2.5 percent each fiscal year, relative to the baseline of the building energy use of the applicable Federal buildings in fiscal year 2017 and after taking into account the progress of the Federal agency in preceding fiscal years.

SEC. 1117. Certification for green buildings.

Section 305 of the Energy Conservation and Production Act (42 U.S.C. 6834) (as amended by section 1115(b)) is amended—

(1) in subsection (a)(3), by adding at the end the following:

    “(D) CERTIFICATION FOR GREEN BUILDINGS.—

    “(i) SUSTAINABLE DESIGN PRINCIPLES.—Sustainable design principles shall be applied to the siting, design, and construction of buildings covered by this subparagraph.

    “(ii) SELECTION OF CERTIFICATION SYSTEMS.—The Secretary, after reviewing the findings of the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)), in consultation with the Administrator of General Services, and in consultation with the Secretary of Defense relating to those facilities under the custody and control of the Department of Defense, shall determine those certification systems for green commercial and residential buildings that the Secretary determines to be the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings.

    “(iii) BASIS FOR SELECTION.—The determination of the certification systems under clause (ii) shall be based on ongoing review of the findings of the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)) and the criteria described in clause (v).

    “(iv) ADMINISTRATION.—In determining certification systems under this subparagraph, the Secretary shall—

    “(I) make a separate determination for all or part of each system; and

    “(II) confirm that the criteria used to support the selection of building products, materials, brands, and technologies—

    “(aa) are based on relevant technical data;

    “(bb) use and reward evaluation of health, safety, and environmental risks and impacts across the lifecycle of the building product, material, brand, or technology, including methodologies generally accepted by the applicable scientific disciplines;

    “(cc) as reasonably practicable, give a preference to performance standards instead of prescriptive measures; and

    “(dd) reward continual improvements in the lifecycle management of health, safety, and environmental risks and impacts.

    “(v) CONSIDERATIONS.—In determining the green building certification systems under this subparagraph, the Secretary shall take into consideration—

    “(I) the ability and availability of assessors and auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement this subparagraph;

    “(II) the ability of the applicable certification organization to collect and reflect public comment;

    “(III) the ability of the standard to be developed and revised through a consensus-based process;

    “(IV) an evaluation of the robustness of the criteria for a high-performance green building, which shall give credit for promoting—

    “(aa) efficient and sustainable use of water, energy, and other natural resources;

    “(bb) the use of renewable energy sources;

    “(cc) improved indoor environmental quality through enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of low-emission materials and building system controls;

    “(dd)(AA) respecting the sourcing of grown, harvested, or mined materials; and

    “(BB) rewarding certifications of responsible sourcing, such as certifications provided by the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, and the Programme for the Endorsement of Forest Certification; and

    “(ee) such other criteria as the Secretary determines to be appropriate; and

    “(V) national recognition within the building industry.

    “(vi) REVIEW.—The Secretary, in consultation with the Administrator of General Services and the Secretary of Defense, shall conduct an ongoing review to evaluate and compare private sector green building certification systems, taking into account—

    “(I) the criteria described in clause (v); and

    “(II) the identification made by the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)).

    “(vii) EXCLUSIONS.—

    “(I) IN GENERAL.—Subject to subclause (II), if a certification system fails to meet the review requirements of clause (v), the Secretary shall—

    “(aa) identify the portions of the system, whether prerequisites, credits, points, or otherwise, that meet the review criteria of clause (v);

    “(bb) determine the portions of the system that are suitable for use; and

    “(cc) exclude all other portions of the system from identification and use.

    “(II) ENTIRE SYSTEMS.—The Secretary shall exclude an entire system from use if an exclusion under subclause (I)—

    “(aa) impedes the integrated use of the system;

    “(bb) creates disparate review criteria or unequal point access for competing materials; or

    “(cc) increases agency costs of the use.

    “(viii) INTERNAL CERTIFICATION PROCESSES.—The Secretary may by rule allow Federal agencies to develop internal certification processes, using certified professionals, in lieu of certification by certification entities identified under clause (ii).

    “(ix) PRIVATIZED MILITARY HOUSING.—With respect to privatized military housing, the Secretary of Defense, after consultation with the Secretary may, through rulemaking, develop alternative certification systems and levels than the systems and levels identified under clause (ii) that achieve an equivalent result in terms of energy savings, sustainable design, and green building performance.

    “(x) WATER CONSERVATION TECHNOLOGIES.—In addition to any use of water conservation technologies otherwise required by this section, water conservation technologies shall be applied to the extent that the technologies are life-cycle cost-effective.

    “(xi) EFFECTIVE DATE.—

    “(I) DETERMINATIONS MADE AFTER DECEMBER 31, 2017.—This subparagraph shall apply to any determination made by a Federal agency after December 31, 2017.

    “(II) DETERMINATIONS MADE ON OR BEFORE DECEMBER 31, 2017.—This subparagraph (as in effect on the day before the date of enactment of the Energy and Natural Resources Act of 2017) shall apply to any use of a certification system for green commercial and residential buildings by a Federal agency on or before December 31, 2017.”; and

(2) by striking subsections (c) and (d) and inserting the following:

“(c) Periodic review.—The Secretary shall—

“(1) once every 5 years, review the Federal building energy standards established under this section; and

“(2) on completion of a review under paragraph (1), if the Secretary determines that significant energy savings would result, upgrade the standards to include all new energy efficiency and renewable energy measures that are technologically feasible and economically justified.”.

SEC. 1118. High-performance green Federal buildings.

Section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)) is amended—

(1) in the subsection heading, by striking “System” and inserting “Systems”;

(2) by striking paragraph (1) and inserting the following:

“(1) IN GENERAL.—Based on an ongoing review, the Federal Director shall identify and shall provide to the Secretary pursuant to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a list of those certification systems that the Director identifies as the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings.”; and

(3) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking “system” and inserting “systems”;

(B) by striking subparagraph (A) and inserting the following:

“(A) an ongoing review provided to the Secretary pursuant to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), which shall—

“(i) be carried out by the Federal Director to compare and evaluate standards; and

“(ii) allow any developer or administrator of a rating system or certification system to be included in the review;”;

(C) in subparagraph (E)(v), by striking “and” after the semicolon at the end;

(D) in subparagraph (F), by striking the period at the end and inserting a semicolon; and

(E) by adding at the end the following:

“(G) a finding that, for all credits addressing the sourcing of grown, harvested, or mined materials, the system rewards the use of products that have obtained certifications of responsible sourcing, such as the certifications provided by the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, and the Programme for the Endorsement of Forest Certification; and

“(H) a finding that the system incorporates life-cycle assessment as a credit pathway.”.

SEC. 1119. Evaluation of potentially duplicative green building programs.

(a) Definitions.—In this section:

(1) ADMINISTRATIVE EXPENSES.—

(A) IN GENERAL.—The term “administrative expenses” has the meaning given the term by the Director of the Office of Management and Budget under section 504(b)(2) of the Energy and Water Development and Related Agencies Appropriations Act, 2010 (31 U.S.C. 1105 note; Public Law 111–85).

(B) INCLUSIONS.—The term “administrative expenses” includes, with respect to an agency—

(i) costs incurred by—

(I) the agency; or

(II) any grantee, subgrantee, or other recipient of funds from a grant program or other program administered by the agency; and

(ii) expenses relating to personnel salaries and benefits, property management, travel, program management, promotion, reviews and audits, case management, and communication regarding, promotion of, and outreach for programs and program activities administered by the agency.

(2) APPLICABLE PROGRAM.—The term “applicable program” means any program that is—

(A) listed in Table 9 (pages 348–350) of the report of the Government Accountability Office entitled “2012 Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue”; and

(B) administered by—

(i) the Secretary;

(ii) the Secretary of Agriculture;

(iii) the Secretary of Defense;

(iv) the Secretary of Education;

(v) the Secretary of Health and Human Services;

(vi) the Secretary of Housing and Urban Development;

(vii) the Secretary of Transportation;

(viii) the Secretary of the Treasury;

(ix) the Administrator of the Environmental Protection Agency;

(x) the Director of the National Institute of Standards and Technology; or

(xi) the Administrator of the Small Business Administration.

(3) COMPTROLLER GENERAL.—The term “Comptroller General” means the Comptroller General of the United States.

(4) SERVICE.—

(A) IN GENERAL.—Subject to subparagraph (B), the term “service” has the meaning given the term by the Director of the Office of Management and Budget.

(B) REQUIREMENTS.—For purposes of subparagraph (A), the term “service” shall be limited to activities, assistance, or other aid that provides a direct benefit to a recipient, such as—

(i) the provision of technical assistance;

(ii) assistance for housing or tuition; or

(iii) financial support (including grants, loans, tax credits, and tax deductions).

(b) Report.—

(1) IN GENERAL.—Not later than January 1, 2018, the Comptroller General, in consultation with the agency heads described in clauses (i) through (xi) of subsection (a)(2)(B), shall submit to Congress and make available on the public Internet website of the Government Accountability Office a report that describes the applicable programs.

(2) REQUIREMENTS.—In preparing the report under paragraph (1), the Comptroller General shall—

(A) determine the approximate annual total administrative expenses of each applicable program attributable to green buildings;

(B) determine the approximate annual expenditures for services for each applicable program attributable to green buildings;

(C) describe the intended market for each applicable program attributable to green buildings, including the—

(i) estimated the number of clients served by each applicable program; and

(ii) beneficiaries who received services or information under the applicable program (if applicable and if data is readily available);

(D) estimate—

(i) the number of full-time employees who administer activities attributable to green buildings for each applicable program; and

(ii) the number of full-time equivalents (the salary of whom is paid in part or full by the Federal Government through a grant or contract, a subaward of a grant or contract, a cooperative agreement, or another form of financial award or assistance) who assist in administering activities attributable to green buildings for the applicable program;

(E) briefly describe the type of services each applicable program provides attributable to green buildings, such as information, grants, technical assistance, loans, tax credits, or tax deductions;

(F) identify the type of recipient who is intended to benefit from the services or information provided under the applicable program attributable to green buildings, such as individual property owners or renters, local governments, businesses, nonprofit organizations, or State governments; and

(G) identify whether written program goals are available for each applicable program.

(c) Recommendations.—Not later than January 1, 2018, the Comptroller General, in consultation with the agency heads described in clauses (i) through (xi) of subsection (a)(2)(B), shall submit to Congress a report that includes—

(1) a recommendation of whether any applicable program should be eliminated or consolidated, including any legislative changes that would be necessary to eliminate or consolidate applicable programs; and

(2) methods to improve the applicable programs by establishing program goals or increasing collaboration to reduce any potential overlap or duplication, taking into account—

(A) the 2011 report of the Government Accountability Office entitled “Federal Initiatives for the NonFederal Sector Could Benefit from More Interagency Collaboration”; and

(B) the report of the Government Accountability Office entitled “2012 Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue”.

(d) Analyses.—Not later than January 1, 2018, the Comptroller General, in consultation with the agency heads described in clauses (i) through (xi) of subsection (a)(2)(B), shall identify—

(1) which applicable programs were specifically authorized by Congress; and

(2) which applicable programs are carried out solely under the discretionary authority of the Secretary or any agency head described in clauses (ii) through (xi) of subsection (a)(2)(B).

SEC. 1120. Study and report on energy savings benefits of operational efficiency programs and services.

(a) Definition of operational efficiency programs and services.—In this section, the term “operational efficiency programs and services” means programs and services that use information and communications technologies (including computer hardware, energy efficiency software, and power management tools) to operate buildings and equipment in the optimum manner at the optimum times.

(b) Study and report.—Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study and issue a report that quantifies the potential energy savings of operational efficiency programs and services for commercial, institutional, industrial, and governmental entities, including Federal agencies.

(c) Measurement and verification of energy savings.—The report required under this section shall include potential methodologies or protocols for utilities, utility regulators, and Federal agencies to evaluate, measure, and verify energy savings from operational efficiency programs and services.

SEC. 1121. Use of Federal disaster relief and emergency assistance for energy-efficient products and structures.

(a) In general.—Title III of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5141 et seq.) is amended by adding at the end the following:

“SEC. 328. Use of assistance for energy-efficient products and structures.

“(a) Definitions.—In this section—

“(1) the term ‘energy-efficient product’ means a product that—

“(A) meets or exceeds the requirements for designation under an Energy Star program established under section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a); or

“(B) meets or exceeds the requirements for designation as being among the highest 25 percent of equivalent products for energy efficiency under the Federal Energy Management Program; and

“(2) the term ‘energy-efficient structure’ means a residential structure, a public facility, or a private nonprofit facility that meets or exceeds the requirements of Standard 90.1–2013 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers or the 2015 International Energy Conservation Code, or any successor thereto.

“(b) Use of assistance.—A recipient of assistance relating to a major disaster or emergency may use the assistance to replace or repair a damaged product or structure with an energy-efficient product or energy-efficient structure.”.

(b) Applicability.—The amendment made by this section shall apply to assistance made available under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) before, on, or after the date of enactment of this Act that is expended on or after the date of enactment of this Act.

SEC. 1122. WaterSense.

(a) In general.—Part B of title III of the Energy Policy and Conservation Act is amended by adding after section 324A (42 U.S.C. 6294a) the following:

“SEC. 324B. WaterSense.

“(a) Establishment of WaterSense program.—

“(1) IN GENERAL.—There is established within the Environmental Protection Agency a voluntary WaterSense program to identify and promote water-efficient products, buildings, landscapes, facilities, processes, and services that, through voluntary labeling of, or other forms of communications regarding, products, buildings, landscapes, facilities, processes, and services while meeting strict performance criteria, sensibly—

“(A) reduce water use;

“(B) reduce the strain on public and community water systems and wastewater and stormwater infrastructure;

“(C) conserve energy used to pump, heat, transport, and treat water; and

“(D) preserve water resources for future generations.

“(2) INCLUSIONS.—The Administrator of the Environmental Protection Agency (referred to in this section as the ‘Administrator’) shall, consistent with this section, identify water-efficient products, buildings, landscapes, facilities, processes, and services, including categories such as—

“(A) irrigation technologies and services;

“(B) point-of-use water treatment devices;

“(C) plumbing products;

“(D) reuse and recycling technologies;

“(E) landscaping and gardening products, including moisture control or water enhancing technologies;

“(F) xeriscaping and other landscape conversions that reduce water use;

“(G) whole house humidifiers; and

“(H) water-efficient buildings or facilities.

“(b) Duties.—The Administrator, coordinating as appropriate with the Secretary, shall—

“(1) establish—

“(A) a WaterSense label to be used for items meeting the certification criteria established in accordance with this section; and

“(B) the procedure, including the methods and means, and criteria by which an item may be certified to display the WaterSense label, minimizing unintended or negative impacts to wastewater treatment works, recycled water quality, or water quality in receiving water;

“(2) enhance public awareness regarding the WaterSense label through outreach, education, and other means;

“(3) preserve the integrity of the WaterSense label by—

“(A) establishing and maintaining feasible performance criteria so that products, buildings, landscapes, facilities, processes, and services labeled with the WaterSense label perform as well or better than less water-efficient counterparts;

“(B) overseeing WaterSense certifications made by third parties;

“(C) as determined appropriate by the Administrator, using testing protocols, from the appropriate, applicable, and relevant consensus standards, for the purpose of determining standards compliance; and

“(D) auditing the use of the WaterSense label in the marketplace and preventing cases of misuse;

“(4) not more often than 6 years after adoption or major revision of any WaterSense specification, review and, if appropriate, revise the specification to achieve additional water savings;

“(5) in revising a WaterSense specification—

“(A) provide reasonable notice to interested parties and the public of any changes, including effective dates, and an explanation of the changes;

“(B) solicit comments from interested parties and the public prior to any changes;

“(C) as appropriate, respond to comments submitted by interested parties and the public; and

“(D) provide an appropriate transition time prior to the applicable effective date of any changes, taking into account the timing necessary for the manufacture, marketing, training, and distribution of the specific water-efficient product, building, landscape, process, or service category being addressed; and

“(6) not later than December 31, 2019, consider for review and revision any WaterSense specification adopted before January 1, 2012.

“(c) Transparency.—The Administrator shall, to the maximum extent practicable and not less than annually, regularly estimate and make available to the public the production and relative market shares and savings of water, energy, and capital costs of water, wastewater, and stormwater attributable to the use of WaterSense-labeled products, buildings, landscapes, facilities, processes, and services.

“(d) Distinction of authorities.—In setting or maintaining specifications for Energy Star pursuant to section 324A, and WaterSense under this section, the Secretary and Administrator shall coordinate to prevent duplicative or conflicting requirements among the respective programs.

“(e) No warranty.—A WaterSense label shall not create an express or implied warranty.”.

(b) Conforming amendment.—The table of contents for the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting after the item relating to section 324A the following:


“Sec. 324B. WaterSense.”.

SEC. 1201. Extended product system rebate program.

(a) Definitions.—In this section:

(1) ELECTRIC MOTOR.—The term “electric motor” has the meaning given the term in section 431.12 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(2) ELECTRONIC CONTROL.—The term “electronic control” means—

(A) a power converter; or

(B) a combination of a power circuit and control circuit included on 1 chassis.

(3) EXTENDED PRODUCT SYSTEM.—The term “extended product system” means an electric motor and any required associated electronic control and driven load that—

(A) offers variable speed or multispeed operation;

(B) offers partial load control that reduces input energy requirements (as measured in kilowatt-hours) as compared to identified base levels set by the Secretary; and

(C) (i) has greater than 1 horsepower; and

(ii) uses an extended product system technology, as determined by the Secretary.

(4) QUALIFIED EXTENDED PRODUCT SYSTEM.—

(A) IN GENERAL.—The term “qualified extended product system” means an extended product system that—

(i) includes an electric motor and an electronic control; and

(ii) reduces the input energy (as measured in kilowatt-hours) required to operate the extended product system by not less than 5 percent, as compared to identified base levels set by the Secretary.

(B) INCLUSIONS.—The term “qualified extended product system” includes commercial or industrial machinery or equipment that—

(i) (I) did not previously make use of the extended product system prior to the redesign described in subclause (II); and

(II) incorporates an extended product system that has greater than 1 horsepower into redesigned machinery or equipment; and

(ii) was previously used prior to, and was placed back into service during, calendar year 2017 or 2018.

(b) Establishment.—Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates for expenditures made by qualified entities for the purchase or installation of a qualified extended product system.

(c) Qualified entities.—

(1) ELIGIBILITY REQUIREMENTS.—A qualified entity under this section shall be—

(A) in the case of a qualified extended product system described in subsection (a)(4)(A), the purchaser of the qualified extended product that is installed; and

(B) in the case of a qualified extended product system described in subsection (a)(4)(B), the manufacturer of the commercial or industrial machinery or equipment that incorporated the extended product system into that machinery or equipment.

(2) APPLICATION.—To be eligible to receive a rebate under this section, a qualified entity shall submit to the Secretary—

(A) an application in such form, at such time, and containing such information as the Secretary may require; and

(B) a certification that includes demonstrated evidence—

(i) that the entity is a qualified entity; and

(ii) (I) in the case of a qualified entity described in paragraph (1)(A)—

(aa) that the qualified entity installed the qualified extended product system during the 2 fiscal years following the date of enactment of this Act;

(bb) that the qualified extended product system meets the requirements of subsection (a)(4)(A); and

(cc) showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity on which the qualified extended product system was installed; or

(II) in the case of a qualified entity described in paragraph (1)(B)—

(aa) that the qualified extended product system meets the requirements of subsection (a)(4)(B); and

(bb) showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity with which the extended product system is integrated.

(d) Authorized amount of rebate.—

(1) IN GENERAL.—The Secretary may provide to a qualified entity a rebate in an amount equal to the product obtained by multiplying—

(A) an amount equal to the sum of the nameplate rated horsepower of—

(i) the electric motor to which the qualified extended product system is attached; and

(ii) the electronic control; and

(B) $25.

(2) MAXIMUM AGGREGATE AMOUNT.—A qualified entity shall not be entitled to aggregate rebates under this section in excess of $25,000 per calendar year.

(e) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $5,000,000 for each of the first 2 full fiscal years following the date of enactment of this Act, to remain available until expended.

SEC. 1202. Energy efficient transformer rebate program.

(a) Definitions.—In this section:

(1) QUALIFIED ENERGY EFFICIENT TRANSFORMER.—The term “qualified energy efficient transformer” means a transformer that meets or exceeds the applicable energy conservation standards described in the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(2) QUALIFIED ENERGY INEFFICIENT TRANSFORMER.—The term “qualified energy inefficient transformer” means a transformer with an equal number of phases and capacity to a transformer described in any of the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act) that—

(A) does not meet or exceed the applicable energy conservation standards described in paragraph (1); and

(B) (i) was manufactured between January 1, 1985, and December 31, 2006, for a transformer with an equal number of phases and capacity as a transformer described in the table in subsection (b)(2) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act); or

(ii) was manufactured between January 1, 1990, and December 31, 2009, for a transformer with an equal number of phases and capacity as a transformer described in the table in paragraph (1) or (2) of subsection (c) of that section (as in effect on the date of enactment of this Act).

(3) QUALIFIED ENTITY.—The term “qualified entity” means an owner of industrial or manufacturing facilities, commercial buildings, or multifamily residential buildings, a utility, or an energy service company that fulfills the requirements of subsection (d).

(b) Establishment.—Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates to qualified entities for expenditures made by the qualified entity for the replacement of a qualified energy inefficient transformer with a qualified energy efficient transformer.

(c) Requirements.—To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including demonstrated evidence—

(1) that the entity purchased a qualified energy efficient transformer;

(2) of the core loss value of the qualified energy efficient transformer;

(3) of the age of the qualified energy inefficient transformer being replaced;

(4) of the core loss value of the qualified energy inefficient transformer being replaced—

(A) as measured by a qualified professional or verified by the equipment manufacturer, as applicable; or

(B) for transformers described in subsection (a)(2)(B)(i), as selected from a table of default values as determined by the Secretary in consultation with applicable industry; and

(5) that the qualified energy inefficient transformer has been permanently decommissioned and scrapped.

(d) Authorized amount of rebate.—The amount of a rebate provided under this section shall be—

(1) for a 3-phase or single-phase transformer with a capacity of not less than 10 and not greater than 2,500 kilovolt-amperes, twice the amount equal to the difference in Watts between the core loss value (as measured in accordance with paragraphs (2) and (4) of subsection (c)) of—

(A) the qualified energy inefficient transformer; and

(B) the qualified energy efficient transformer; or

(2) for a transformer described in subsection (a)(2)(B)(i), the amount determined using a table of default rebate values by rated transformer output, as measured in kilovolt-amperes, as determined by the Secretary in consultation with applicable industry.

(e) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2018 and 2019, to remain available until expended.

(f) Termination of effectiveness.—The authority provided by this section terminates on December 31, 2019.

SEC. 1203. Third-party certification under Energy Star program.

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

“(e) Third-Party Certification.—

“(1) IN GENERAL.—Subject to paragraph (2), not later than 180 days after the date of enactment of this subsection, the Administrator shall revise the certification requirements for the labeling of consumer, home, and office electronic products for program partners that have complied with all requirements of the Energy Star program for a period of at least 18 months.

“(2) ADMINISTRATION.—In the case of a program partner described in paragraph (1), the new requirements under paragraph (1)—

“(A) shall not require third-party certification for a product to be listed; but

“(B) may require that test data and other product information be submitted to facilitate product listing and performance verification for a sample of products.

“(3) THIRD PARTIES.—Nothing in this subsection prevents the Administrator from using third parties in the course of the administration of the Energy Star program.

“(4) TERMINATION.—

“(A) IN GENERAL.—Subject to subparagraph (B), an exemption from third-party certification provided to a program partner under paragraph (1) shall terminate if the program partner is found to have violated program requirements with respect to at least 2 separate models during a 2-year period.

“(B) RESUMPTION.—A termination for a program partner under subparagraph (A) shall cease if the program partner complies with all Energy Star program requirements for a period of at least 3 years.”.

SEC. 1204. Application of energy conservation standards to certain external power supplies.

(a) Definition of external power supply.—Section 321(36)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6291(36)(A)) is amended—

(1) by striking the subparagraph designation and all that follows through “The term” and inserting the following:

“(A) EXTERNAL POWER SUPPLY.—

“(i) IN GENERAL.—The term”; and

(2) by adding at the end the following:

“(ii) EXCLUSION.—The term ‘external power supply’ does not include a power supply circuit, driver, or device that is designed exclusively to be connected to, and power—

“(I) light-emitting diodes providing illumination;

“(II) organic light-emitting diodes providing illumination; or

“(III) ceiling fans using direct current motors.”.

(b) Standards for lighting power supply circuits.—

(1) DEFINITION.—Section 340(2)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended by striking clause (v) and inserting the following:

“(v) electric lights and lighting power supply circuits;”.

(2) ENERGY CONSERVATION STANDARD FOR CERTAIN EQUIPMENT.—Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:

“(g) Lighting power supply circuits.—If the Secretary, acting pursuant to section 341(b), includes as a covered equipment solid state lighting power supply circuits, drivers, or devices described in section 321(36)(A)(ii), the Secretary may prescribe under this part, not earlier than 1 year after the date on which a test procedure has been prescribed, an energy conservation standard for such equipment.”.

(c) Technical corrections.—

(1) Section 321(6)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6291(6)(B)) is amended by striking “(19)” and inserting “(20)”.

(2) Section 324 of the Energy Policy and Conservation Act (42 U.S.C. 6294) is amended by striking “(19)” each place it appears in each of subsections (a)(3), (b)(1)(B), (b)(3), and (b)(5) and inserting “(20)”.

(3) Section 325(l) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by striking “paragraph (19)” each place it appears and inserting “paragraph (20)”.

SEC. 1205. Clarification to effective date for regional standards.

Section 325(o)(6)(E) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)(6)(E)) is amended by striking clause (ii) and inserting the following:

“(ii) REGIONAL STANDARDS.—

“(I) IN GENERAL.—Except as provided in subclause (II), any additional and more restrictive regional standard established for a product under this paragraph shall apply to the product if the product is installed on or after the effective date of the regional standard in any State in which the Secretary has designated the standard to apply.

“(II) EXCEPTION.—A regional standard shall not apply under subclause (I) to any product that is—

“(aa) manufactured before the effective date of the regional standard; and

“(bb) installed not later than 1 year after the effective date of the regional standard.”.

SEC. 1206. Modifying product definitions.

(a) Authority to modify definitions.—

(1) COVERED PRODUCTS.—Section 322 of the Energy Policy and Conservation Act (42 U.S.C. 6292) is amended by adding at the end the following:

“(c) Modifying definitions of covered products.—

“(1) IN GENERAL.—For any covered product for which a definition is provided in section 321, the Secretary may, by rule, unless prohibited herein, modify such definition in order to—

“(A) address significant changes in the product or the market occurring since the definition was established; or

“(B) better enable improvements in the energy efficiency of the product and related energy using systems.

“(2) ANTIBACKSLIDING EXEMPTION.—Section 325(o)(1) shall not apply to adjustments to covered product definitions made pursuant to this subsection.

“(3) PROCEDURE FOR MODIFYING DEFINITION.—

“(A) IN GENERAL.—Notice of any adjustment to the definition of a covered product and an explanation of the reasons therefor shall be published in the Federal Register and opportunity provided for public comment.

“(B) CONSENSUS REQUIRED.—Any amendment to the definition of a covered product under this subsection must have consensus support, as reflected in—

“(i) the outcome of negotiations conducted in accordance with the subchapter III of chapter 5 of title 5, United States Code (commonly known as the ‘Negotiated Rulemaking Act of 1990’); or

“(ii) the Secretary’s receipt of a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, which contains a recommended modified definition for a covered product.

“(4) EFFECT OF A MODIFIED DEFINITION.—

“(A) IN GENERAL.—For any type or class of consumer product which becomes a covered product pursuant to this subsection—

“(i) the Secretary may establish test procedures for such type or class of covered product pursuant to section 323 and energy conservation standards pursuant to subsections (o) and (p) of section 325;

“(ii) the Commission may prescribe labeling rules pursuant to section 324 if the Commission determines that labeling in accordance with that section is technologically and economically feasible and likely to assist consumers in making purchasing decisions;

“(iii) section 327 shall begin to apply to such type or class of covered product in accordance with section 325(ii)(1); and

“(iv) standards previously promulgated under section 325 shall not apply to such type or class of product.

“(B) APPLICABILITY.—For any type or class of consumer product which ceases to be a covered product pursuant to this subsection, the provisions of this part shall no longer apply to the type or class of consumer product.”.

(2) COVERED EQUIPMENT.—Section 341 of the Energy Policy and Conservation Act (42 U.S.C. 6312) is amended by adding at the end the following:

“(d) Modifying definitions of covered equipment.—

“(1) IN GENERAL.—For any covered equipment for which a definition is provided in section 340, the Secretary may, by rule, unless prohibited herein, modify such definition in order to—

“(A) address significant changes in the product or the market occurring since the definition was established; or

“(B) better enable improvements in the energy efficiency of the equipment and related energy using systems.

“(2) ANTIBACKSLIDING EXEMPTION.—Section 325(o)(1) shall not apply to adjustments to covered product definitions made pursuant to this subsection

“(3) PROCEDURE FOR MODIFYING DEFINITION.—

“(A) IN GENERAL.—Notice of any adjustment to the definition of a type of covered equipment and an explanation of the reasons therefor shall be published in the Federal Register and opportunity provided for public comment.

“(B) CONSENSUS REQUIRED.—Any amendment to the definition of a type of covered equipment under this subsection must have consensus support, as reflected in—

“(i) the outcome of negotiations conducted in accordance with the subchapter III of chapter 5 of title 5, United States Code (commonly known as the ‘Negotiated Rulemaking Act of 1990’); or

“(ii) the Secretary’s receipt of a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered equipment, States, and efficiency advocates), as determined by the Secretary, which contains a recommended modified definition for a type of covered equipment.

“(4) EFFECT OF A MODIFIED DEFINITION.—

“(A) For any type or class of equipment which becomes covered equipment pursuant to this subsection—

“(i) the Secretary may establish test procedures for such type or class of covered equipment pursuant to section 343 and energy conservation standards pursuant to subsections (o) and (p) of section 325;

“(ii) the Secretary may prescribe labeling rules pursuant to section 344 if the Secretary determines that labeling in accordance with that section is technologically and economically feasible and likely to assist purchasers in making purchasing decisions;

“(iii) section 327 shall begin to apply to such type or class of covered equipment in accordance with section 325(ii)(1); and

“(iv) standards previously promulgated under section 325, 342, or 346 shall not apply to such type or class of covered equipment.

“(B) For any type or class of equipment which ceases to be covered equipment pursuant to this subsection the provisions of this part shall no longer apply to the type or class of equipment.”.

(b) Conforming amendments providing for judicial review.—

(1) Section 336 of the Energy Policy and Conservation Act (42 U.S.C. 6306) is amended by striking “section 323,” each place it appears and inserting “section 322, 323,”.

(2) Section 345(a)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6316(a)(1)) is amended to read as follows:

“(1) the references to sections 322, 323, 324, and 325 of this Act shall be considered as references to sections 341, 343, 344, and 342 of this Act, respectively;”.

SEC. 1207. Clarifying rulemaking procedures.

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

(1) by redesignating paragraphs (1), (2), (3), and (4) as paragraphs (2), (3), (5), and (6), respectively;

(2) by inserting before paragraph (2) (as so redesignated by paragraph (1) of this subsection) the following:

“(1) Unless acting pursuant to paragraph (6), the Secretary shall provide an opportunity for public input prior to the issuance of a proposed rule, seeking information concerning the analysis the Department of Energy may undertake to develop a proposed rule.”; and

(3) by inserting after paragraph (3) (as so redesignated by paragraph (1) of this subsection) the following:

“(4) RESTRICTION BASED ON TEST PROCEDURES.—

“(A) IN GENERAL.—Any proposed rule to establish new or amended energy conservation standards shall be based on the final test procedure that shall be used to determine compliance with that product’s standard. The public comment period on such proposed energy conservation standards shall conclude no sooner than 180 days after the date of publication of a final rule revising the test procedure for that product.

“(B) EXCEPTIONS.—Subparagraph (A) does not apply to—

“(i) rules, including test procedure rules, developed in accordance with the subchapter III of chapter 5 of title 5, United States Code (commonly known as the ‘Negotiated Rulemaking Act of 1990’);

“(ii) rules, including test procedure rules, adopted pursuant to the procedures in paragraph (6); or

“(iii) test procedure amendments that the Secretary determines will not alter the measured energy efficiency, measured energy use, or measured water use of any covered product, subject to the requirement that, if an amendment alters the product testing or compliance calculation, the determination shall be based on test data subject to public comment.

“(C) SAVINGS CLAUSE.—Nothing in this paragraph—

“(i) limits the authority of the Secretary to amend test procedures under section 323 and use those modified test procedures for compliance with an existing or revised standard; or

“(ii) alters the deadline for completion of any action required under this section.”.

(b) Conforming amendment.—Section 345(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended by striking “section 325(p)(4),” and inserting “section 325(p)(3), (4), and (6),”.

(c) Effective date.—The amendments made by this section shall apply to rulemaking proceedings in which a notice of proposed rulemaking or supplemental notice of proposed rulemaking is issued on or after the date of enactment of this Act.

SEC. 1208. Extension of nonapplication of no-load mode energy efficiency standard to certain security or life safety alarm or surveillance systems.

(a) Section 325(u)(3)(D)(ii) of the Energy Policy and Conservation Act (42 U.S.C. 6295(u)(3)(D)(ii)) is amended—

(1) in the clause heading, by striking “2015” and inserting “2021”;

(2) in subclause (I), by striking “2015” and inserting “2021,”; and

(3) in subclause (II)(bb), by striking “2017” and inserting “2023”.

(b) Section 325(u)(3)(E) of the Energy Policy and Conservation Act (42 U.S.C. 6295(u)(3)(E)) is amended—

(1) in clause (ii), by striking “July 1, 2017,” and inserting “the effective date of the amendment under subparagraph (D)(ii)”; and

(2) by adding at the end the following:

“(iv) TREATMENT IN RULE.—In the rule under subparagraph (D)(ii) and subsequent amendments the Secretary may treat some or all external power supplies designed to be connected to a security or life safety alarm or surveillance system as a separate product class or may extend the nonapplication under clause (ii).”.

SEC. 1301. Manufacturing energy efficiency.

(a) Purposes.—The purposes of this section are—

(1) to reform and reorient the industrial efficiency programs of the Department;

(2) to establish a clear and consistent authority for industrial efficiency programs of the Department;

(3) to accelerate the deployment of technologies and practices that will increase industrial energy efficiency and improve productivity;

(4) to accelerate the development and demonstration of technologies that will assist the deployment goals of the industrial efficiency programs of the Department and increase manufacturing efficiency;

(5) to stimulate domestic economic growth and improve industrial productivity and competitiveness; and

(6) to strengthen partnerships between Federal and State governmental agencies and the private and academic sectors.

(b) Future of Industry program.—

(1) IN GENERAL.—Section 452 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111) is amended by striking the section heading and inserting the following: “Future of Industry program”.

(2) DEFINITION OF ENERGY SERVICE PROVIDER.—Section 452(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(a)) is amended—

(A) in paragraph (2)—

(i) by redesignating subparagraph (E) as subparagraph (F); and

(ii) by inserting before subparagraph (F) (as so redesignated) the following:

“(E) water and wastewater treatment facilities, including systems that treat municipal, industrial, and agricultural waste; and”;

(B) by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; and

(C) by inserting after paragraph (2) the following:

“(3) ENERGY SERVICE PROVIDER.—The term ‘energy service provider’ means any business providing technology or services to improve the energy efficiency, water efficiency, power factor, or load management of a manufacturing site or other industrial process in an energy-intensive industry, or any utility operating under a utility energy service project.”.

(3) INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS.—Section 452(e) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)) is amended—

(A) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and indenting appropriately;

(B) by striking “The Secretary” and inserting the following:

“(1) IN GENERAL.—The Secretary”;

(C) in subparagraph (A) (as redesignated by subparagraph (A)), by inserting before the semicolon at the end the following: “, including assessments of sustainable manufacturing goals and the implementation of information technology advancements for supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes”; and

(D) by adding at the end the following:

“(2) COORDINATION.—To increase the value and capabilities of the industrial research and assessment centers, the centers shall—

“(A) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Standards and Technology;

“(B) coordinate with the Building Technologies Program of the Department of Energy to provide building assessment services to manufacturers;

“(C) increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories for national industrial and manufacturing needs;

“(D) increase partnerships with energy service providers and technology providers to leverage private sector expertise and accelerate deployment of new and existing technologies and processes for energy efficiency, power factor, and load management;

“(E) identify opportunities for reducing greenhouse gas emissions; and

“(F) promote sustainable manufacturing practices for small- and medium-sized manufacturers.

“(3) OUTREACH.—The Secretary shall provide funding for—

“(A) outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information, technologies, and services available; and

“(B) coordination activities by each industrial research and assessment center to leverage efforts with—

“(i) Federal and State efforts;

“(ii) the efforts of utilities and energy service providers;

“(iii) the efforts of regional energy efficiency organizations; and

“(iv) the efforts of other industrial research and assessment centers.

“(4) WORKFORCE TRAINING.—

“(A) IN GENERAL.—The Secretary shall pay the Federal share of associated internship programs under which students work with or for industries, manufacturers, and energy service providers to implement the recommendations of industrial research and assessment centers.

“(B) FEDERAL SHARE.—The Federal share of the cost of carrying out internship programs described in subparagraph (A) shall be 50 percent.

“(5) SMALL BUSINESS LOANS.—The Administrator of the Small Business Administration shall, to the maximum extent practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (15 U.S.C. 631 et seq.) to implement recommendations of industrial research and assessment centers established under paragraph (1).

“(6) ADVANCED MANUFACTURING STEERING COMMITTEE.—The Secretary shall establish an advisory steering committee to provide recommendations to the Secretary on planning and implementation of the Advanced Manufacturing Office of the Department of Energy.

“(7) EXPANSION OF TECHNICAL ASSISTANCE.—The Secretary shall expand the institution of higher education-based industrial research and assessment centers, working across Federal agencies as necessary—

“(A) to provide comparable assessment services to water and wastewater treatment facilities, including systems that treat municipal, industrial, and agricultural waste; and

“(B) to equip the directors of the centers with the training and tools necessary to provide technical assistance on energy savings to the water and wastewater treatment facilities.”.

(c) Sustainable manufacturing initiative.—

(1) IN GENERAL.—Part E of title III of the Energy Policy and Conservation Act (42 U.S.C. 6341) is amended by adding at the end the following:

“SEC. 376. Sustainable manufacturing initiative.

“(a) In general.—As part of the Office of Energy Efficiency and Renewable Energy, the Secretary, on the request of a manufacturer, shall conduct on-site technical assessments to identify opportunities for—

“(1) maximizing the energy efficiency of industrial processes and cross-cutting systems;

“(2) preventing pollution and minimizing waste;

“(3) improving efficient use of water in manufacturing processes;

“(4) conserving natural resources; and

“(5) achieving such other goals as the Secretary determines to be appropriate.

“(b) Coordination.—The Secretary shall carry out the initiative in coordination with the private sector and appropriate agencies, including the National Institute of Standards and Technology, to accelerate adoption of new and existing technologies and processes that improve energy efficiency.

“(c) Research and development program for sustainable manufacturing and industrial technologies and processes.—As part of the industrial efficiency programs of the Department of Energy, the Secretary shall carry out a joint industry-government partnership program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies and processes that maximize the energy efficiency of industrial plants, reduce pollution, and conserve natural resources.”.

(2) TABLE OF CONTENTS.—The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part E of title III the following:


“Sec. 376. Sustainable manufacturing initiative.”.

SEC. 1302. Leveraging existing Federal agency programs to assist small and medium manufacturers.

(a) Definitions.—In this section and section 1303:

(1) ENERGY MANAGEMENT SYSTEM.—The term “energy management system” means a business management process based on standards of the American National Standards Institute that enables an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, security, use, and consumption.

(2) INDUSTRIAL ASSESSMENT CENTER.—The term “industrial assessment center” means a center located at an institution of higher education that—

(A) receives funding from the Department;

(B) provides an in-depth assessment of small- and medium-size manufacturer plant sites to evaluate the facilities, services, and manufacturing operations of the plant site; and

(C) identifies opportunities for potential savings for small- and medium-size manufacturer plant sites from energy efficiency improvements, waste minimization, pollution prevention, and productivity improvement.

(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) SMALL AND MEDIUM MANUFACTURERS.—The term “small and medium manufacturers” means manufacturing firms—

(A) classified in the North American Industry Classification System as any of sectors 31 through 33;

(B) with gross annual sales of less than $100,000,000;

(C) with fewer than 500 employees at the plant site; and

(D) with annual energy bills totaling more than $100,000 and less than $2,500,000.

(5) SMART MANUFACTURING.—The term “smart manufacturing” means advanced technologies in information, automation, monitoring, computation, sensing, modeling, and networking that—

(A) digitally—

(i) simulate manufacturing production lines;

(ii) operate computer-controlled manufacturing equipment;

(iii) monitor and communicate production line status; and

(iv) manage and optimize energy productivity and cost throughout production;

(B) model, simulate, and optimize the energy efficiency of a factory building;

(C) monitor and optimize building energy performance;

(D) model, simulate, and optimize the design of energy efficient and sustainable products, including the use of digital prototyping and additive manufacturing to enhance product design;

(E) connect manufactured products in networks to monitor and optimize the performance of the networks, including automated network operations; and

(F) digitally connect the supply chain network.

(b) Expansion of Technical Assistance Programs.—The Secretary shall expand the scope of technologies covered by the Industrial Assessment Centers of the Department—

(1) to include smart manufacturing technologies and practices; and

(2) to equip the directors of the Industrial Assessment Centers with the training and tools necessary to provide technical assistance in smart manufacturing technologies and practices, including energy management systems, to manufacturers.

(c) Funding.—The Secretary shall use unobligated funds of the Department to carry out this section.

SEC. 1303. Leveraging smart manufacturing infrastructure at National Laboratories.

(a) Study.—

(1) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Secretary shall conduct a study on ways in which the Department can increase access to existing high-performance computing resources in the National Laboratories, particularly for small and medium manufacturers.

(2) INCLUSIONS.—In identifying ways to increase access to National Laboratories under paragraph (1), the Secretary shall—

(A) focus on increasing access to the computing facilities of the National Laboratories; and

(B) ensure that—

(i) the information from the manufacturer is protected; and

(ii) the security of the National Laboratory facility is maintained.

(3) 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.

(b) Actions for Increased Access.—The Secretary shall facilitate access to the National Laboratories studied under subsection (a) for small and medium manufacturers so that small and medium manufacturers can fully use the high-performance computing resources of the National Laboratories to enhance the manufacturing competitiveness of the United States.

SEC. 1401. Objectives.

The objectives of this subtitle are—

(1) to establish a consistent and consolidated authority for the vehicle technology program at the Department;

(2) 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;

(3) to support domestic research, development, engineering, demonstration, and commercial application and manufacturing of advanced vehicles, engines, and components;

(4) to enable vehicles to move larger volumes of goods and more passengers with less energy and emissions;

(5) to develop cost-effective advanced technologies for wide-scale utilization throughout the passenger, commercial, government, and transit vehicle sectors;

(6) to allow for greater consumer choice of vehicle technologies and fuels;

(7) shorten technology development and integration cycles in the vehicle industry;

(8) to ensure a proper balance and diversity of Federal investment in vehicle technologies; and

(9) to strengthen partnerships between Federal and State governmental agencies and the private and academic sectors.

SEC. 1402. Coordination and nonduplication.

The Secretary shall ensure, to the maximum extent practicable, that the activities authorized by this subtitle do not duplicate those of other programs within the Department or other relevant research agencies.

SEC. 1403. 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 2018, $313,567,000;

(2) for fiscal year 2019, $326,109,000;

(3) for fiscal year 2020, $339,154,000;

(4) for fiscal year 2021, $352,720,000; and

(5) for fiscal year 2022, $366,829,000.

SEC. 1404. Reporting.

(a) Technologies developed.—Not later than 18 months after the date of enactment of this Act and annually thereafter through 2022, the Secretary shall submit to Congress a report regarding the technologies developed as a result of the activities authorized by this subtitle, 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.

(b) Additional matters.—At the end of each fiscal year through 2022, the Secretary shall submit to the relevant Congressional committees of jurisdiction an annual report describing activities undertaken in the previous year under this Act, active industry participants, the status of public private partnerships, progress of the program in meeting goals and timelines, and a strategic plan for funding of activities across agencies.

SEC. 1411. Program.

(a) 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 the Nation’s passenger and commercial vehicles, including activities in the areas of—

(1) electrification of vehicle systems;

(2) batteries, ultracapacitors, and other energy storage devices;

(3) power electronics;

(4) vehicle, component, and subsystem manufacturing technologies and processes;

(5) engine efficiency and combustion optimization;

(6) waste heat recovery;

(7) transmission and drivetrains;

(8) 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;

(9) natural gas vehicle technologies;

(10) aerodynamics, rolling resistance (including tires and wheel assemblies), and accessory power loads of vehicles and associated equipment;

(11) vehicle weight reduction, including lightweighting materials and the development of manufacturing processes to fabricate, assemble, and use dissimilar materials;

(12) friction and wear reduction;

(13) engine and component durability;

(14) innovative propulsion systems;

(15) advanced boosting systems;

(16) hydraulic hybrid technologies;

(17) engine compatibility with and optimization for a variety of transportation fuels including natural gas and other liquid and gaseous fuels;

(18) predictive engineering, modeling, and simulation of vehicle and transportation systems;

(19) refueling and charging infrastructure for alternative fueled and electric or plug-in electric hybrid vehicles, including the unique challenges facing rural areas;

(20) gaseous fuels storage systems and system integration and optimization;

(21) sensing, communications, and actuation technologies for vehicle, electrical grid, and infrastructure;

(22) efficient use, substitution, and recycling of potentially critical materials in vehicles, including rare earth elements and precious metals, at risk of supply disruption;

(23) aftertreatment technologies;

(24) thermal management of battery systems;

(25) retrofitting advanced vehicle technologies to existing vehicles;

(26) development of common standards, specifications, and architectures for both transportation and stationary battery applications;

(27) advanced internal combustion engines;

(28) mild hybrid;

(29) engine down speeding;

(30) vehicle-to-vehicle, vehicle-to-pedestrian, and vehicle-to-infrastructure technologies; and

(31) other research areas as determined by the Secretary.

(b) 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 reductions in emissions, including activities in the areas of—

(1) hydrogen vehicle technologies, including fuel cells, hydrogen storage, infrastructure, and activities in hydrogen technology validation and safety codes and standards;

(2) multiple battery chemistries and novel energy storage devices, including nonchemical batteries and electromechanical storage technologies such as hydraulics, flywheels, and compressed air storage;

(3) communication and connectivity among vehicles, infrastructure, and the electrical grid; and

(4) other innovative technologies research and development, as determined by the Secretary.

(c) Industry participation.—To the maximum extent practicable, activities under this Act 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, universities, national laboratories, and independent research laboratories. In carrying out this Act the Secretary shall—

(1) 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 where possible, partner with such firms that conduct significant and relevant research and development activities in the United States;

(2) 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;

(3) develop more effective processes for transferring research findings and technologies to industry;

(4) support public-private partnerships, dedicated to overcoming barriers in commercial application of transformational vehicle technologies, that utilize such industry-led technology development facilities of entities with demonstrated expertise in successfully designing and engineering pre-commercial generations of such transformational technology; and

(5) promote efforts to ensure that technology research, development, engineering, and commercial application activities funded under this Act are carried out in the United States.

(d) Interagency and intraagency coordination.—To the maximum extent practicable, the Secretary shall coordinate research, development, demonstration, and commercial application activities among—

(1) relevant programs within the Department, including—

(A) the Office of Energy Efficiency and Renewable Energy;

(B) the Office of Science;

(C) the Office of Electricity Delivery and Energy Reliability;

(D) the Office of Fossil Energy;

(E) the Advanced Research Projects Agency—Energy; and

(F) other offices as determined by the Secretary; and

(2) relevant technology research and development programs within other Federal agencies, as determined by the Secretary.

(e) 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 Act.

(f) 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.

(g) Criteria.—When awarding grants under this program, the Secretary shall give priority to those technologies (either individually or as part of a system) that—

(1) provide the greatest aggregate fuel savings based on the reasonable projected sales volumes of the technology; and

(2) provide the greatest increase in United States employment.

(h) Secondary use applications.—

(1) IN GENERAL.—The Secretary shall carry out a research, development, and demonstration program that—

(A) builds on any work carried out under section 915 of the Energy Policy Act of 2005 (42 U.S.C. 16195);

(B) identifies possible uses of a vehicle battery after the useful life of the battery in a vehicle has been exhausted;

(C) conducts long-term testing to verify performance and degradation predictions and lifetime valuations for secondary uses;

(D) evaluates innovative approaches to recycling materials from plug-in electric drive vehicles and the batteries used in plug-in electric drive vehicles;

(E) (i) assesses the potential for markets for uses described in subparagraph (B) to develop; and

(ii) identifies any barriers to the development of those markets; and

(F) identifies the potential uses of a vehicle battery—

(i) with the most promise for market development; and

(ii) for which market development would be aided by a demonstration project.

(2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress an initial report on the findings of the program described in paragraph (1), including recommendations for stationary energy storage and other potential applications for batteries used in plug-in electric drive vehicles.

(3) SECONDARY USE DEMONSTRATION.—

(A) IN GENERAL.—Based on the results of the program described in paragraph (1), the Secretary shall develop guidelines for projects that demonstrate the secondary uses and innovative recycling of vehicle batteries.

(B) PUBLICATION OF GUIDELINES.—Not later than 18 months after the date of enactment of this Act, the Secretary shall—

(i) publish the guidelines described in subparagraph (A); and

(ii) solicit applications for funding for demonstration projects.

(C) PILOT DEMONSTRATION PROGRAM.—Not later than 21 months after the date of enactment of this Act, the Secretary shall select proposals for grant funding under this section, based on an assessment of which proposals are mostly likely to contribute to the development of a secondary market for batteries.

SEC. 1412. 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.

SEC. 1421. Program.

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—

(1) engine efficiency and combustion research;

(2) onboard storage technologies for compressed and liquefied natural gas;

(3) development and integration of engine technologies designed for natural gas operation of a variety of vehicle platforms;

(4) waste heat recovery and conversion;

(5) improved aerodynamics and tire rolling resistance;

(6) energy and space-efficient emissions control systems;

(7) mild hybrid, heavy hybrid, hybrid hydraulic, plug-in hybrid, and electric platforms, and energy storage technologies;

(8) drivetrain optimization;

(9) friction and wear reduction;

(10) engine idle and parasitic energy loss reduction;

(11) electrification of accessory loads;

(12) onboard sensing and communications technologies;

(13) advanced lightweighting materials and vehicle designs;

(14) increasing load capacity per vehicle;

(15) thermal management of battery systems;

(16) recharging infrastructure;

(17) compressed natural gas infrastructure;

(18) advanced internal combustion engines;

(19) complete vehicle and power pack modeling, simulation, and testing;

(20) 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;

(21) retrofitting advanced technologies onto existing truck fleets;

(22) advanced boosting systems;

(23) engine down speeding; and

(24) integration of these and other advanced systems onto a single truck and trailer platform.

SEC. 1422. Class 8 truck and trailer systems demonstration.

(a) 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 section 1421.

(b) 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.

SEC. 1423. Technology testing and metrics.

The Secretary, in coordination with the partners of the interagency research program described in section 1421—

(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.

SEC. 1424. 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. 1431. Repeal of existing authorities.

(a) In general.—Sections 706, 711, 712, and 933 of the Energy Policy Act of 2005 (42 U.S.C. 16051, 16061, 16062, 16233) are repealed.

(b) Energy efficiency.—Section 911 of the Energy Policy Act of 2005 (42 U.S.C. 16191) is amended—

(1) in subsection (a)—

(A) in paragraph (1)(A), by striking “vehicles, buildings,” and inserting “buildings”; and

(B) in paragraph (2)—

(i) by striking subparagraph (A); and

(ii) by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and

(2) in subsection (c)—

(A) by striking paragraph (3);

(B) by redesignating paragraph (4) as paragraph (3); and

(C) in paragraph (3) (as so redesignated), by striking “(a)(2)(D)” and inserting “(a)(2)(C)”.

SEC. 1432. Reauthorization of diesel emissions reduction program.

Section 797(a) of the Energy Policy Act of 2005 (42 U.S.C. 16137(a)) is amended by striking “2016” and inserting “2022”.

SEC. 1433. Gaseous fuel dual fueled automobiles.

Section 32905 of title 49, United States Code, is amended by striking subsection (d) and inserting the following:

“(d) Gaseous fuel dual fueled automobiles.—

“(1) MODEL YEARS 1993 THROUGH 2017.—For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model years 1993 through 2017, the Administrator shall measure the fuel economy for that model by dividing 1.0 by the sum of—

“(A) .5 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and

“(B) .5 divided by the fuel economy measured under subsection (c) of this section when operating the model on gaseous fuel.

“(2) SUBSEQUENT MODEL YEARS.—For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model year 2018 or any subsequent model year, the Administrator shall calculate fuel economy in accordance with section 600.510–12 (c)(2)(vii) of title 40, Code of Federal Regulations (as in effect on the date of enactment of this paragraph) if the vehicle qualifies under section 32901(c).”.

SEC. 1501. Definitions.

In this subtitle:

(1) COVERED LOAN.—The term “covered loan” means a loan secured by a home that is insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.).

(2) HOMEOWNER.—The term “homeowner” means the mortgagor under a covered loan.

(3) MORTGAGEE.—The term “mortgagee” means an original lender under a covered loan or the holder of a covered loan at the time at which that mortgage transaction is consummated.

SEC. 1502. Enhanced energy efficiency underwriting criteria.

(a) In general.—Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall, in consultation with the advisory group established in section 1505(c), develop and issue guidelines for the Federal Housing Administration to implement enhanced loan eligibility requirements, for use when testing the ability of a loan applicant to repay a covered loan, that account for the expected energy cost savings for a loan applicant at a subject property, in the manner set forth in subsections (b) and (c).

(b) Requirements to account for energy cost savings.—

(1) IN GENERAL.—The enhanced loan eligibility requirements under subsection (a) shall require that, for all covered loans for which an energy efficiency report is voluntarily provided to the mortgagee by the homeowner, the Federal Housing Administration and the mortgagee shall take into consideration the estimated energy cost savings expected for the owner of the subject property in determining whether the loan applicant has sufficient income to service the mortgage debt plus other regular expenses.

(2) USE AS OFFSET.—To the extent that the Federal Housing Administration uses a test such as a debt-to-income test that includes certain regular expenses, such as hazard insurance and property taxes—

(A) the expected energy cost savings shall be included as an offset to these expenses; and

(B) the Federal Housing Administration may not use the offset described in subparagraph (A) to qualify a loan applicant for insurance under title II of the National Housing Act (12 U.S.C. 1707 et seq.) with respect to a loan that would not otherwise meet the requirements for such insurance.

(3) TYPES OF ENERGY COSTS.—Energy costs to be assessed under this subsection shall include the cost of electricity, natural gas, oil, and any other fuel regularly used to supply energy to the subject property.

(c) Determination of estimated energy cost savings.—

(1) IN GENERAL.—The guidelines to be issued under subsection (a) shall include instructions for the Federal Housing Administration to calculate estimated energy cost savings using—

(A) the energy efficiency report;

(B) an estimate of baseline average energy costs; and

(C) additional sources of information as determined by the Secretary of Housing and Urban Development.

(2) REPORT REQUIREMENTS.—For the purposes of paragraph (1), an energy efficiency report shall—

(A) estimate the expected energy cost savings specific to the subject property, based on specific information about the property;

(B) be prepared in accordance with the guidelines to be issued under subsection (a); and

(C) be prepared—

(i) in accordance with the Residential Energy Service Network’s Home Energy Rating System (commonly known as “HERS”) by an individual certified by the Residential Energy Service Network, unless the Secretary of Housing and Urban Development finds that the use of HERS does not further the purposes of this subtitle;

(ii) in accordance with the Alaska Housing Finance Corporation energy rating system by an individual certified by the Alaska Housing Finance Corporation as an authorized Energy Rater; or

(iii) by other methods approved by the Secretary of Housing and Urban Development, in consultation with the Secretary and the advisory group established in section 1505(c), for use under this subtitle, which shall include a third-party quality assurance procedure.

(3) USE BY APPRAISER.—If an energy efficiency report is used under subsection (b), the energy efficiency report shall be provided to the appraiser to estimate the energy efficiency of the subject property and for potential adjustments for energy efficiency.

(d) Pricing of loans.—

(1) IN GENERAL.—The Federal Housing Administration may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of the loans.

(2) IMPOSITION OF CERTAIN MATERIAL COSTS, IMPEDIMENTS, OR PENALTIES.—In the absence of a publicly disclosed analysis that demonstrates significant additional default risk or prepayment risk associated with the loans, the Federal Housing Administration shall not impose material costs, impediments, or penalties on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this section.

(e) Limitations.—

(1) IN GENERAL.—The Federal Housing Administration may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of those loans.

(2) PROHIBITED ACTIONS.—The Federal Housing Administration shall not—

(A) modify existing underwriting criteria or adopt new underwriting criteria that intentionally negate or reduce the impact of the requirements or resulting benefits that are set forth or otherwise derived from the enhanced loan eligibility requirements required under this section; or

(B) impose greater buy back requirements, credit overlays, or insurance requirements, including private mortgage insurance, on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this section.

(f) Applicability and implementation date.—Not later than 3 years after the date of enactment of this Act, and before December 31, 2019, the enhanced loan eligibility requirements required under this section shall be implemented by the Federal Housing Administration to—

(1) apply to any covered loan for the sale, or refinancing of any loan for the sale, of any home;

(2) be available on any residential real property (including individual units of condominiums and cooperatives) that qualifies for a covered loan; and

(3) provide prospective mortgagees with sufficient guidance and applicable tools to implement the required underwriting methods.

SEC. 1503. Enhanced energy efficiency underwriting valuation guidelines.

(a) In general.—Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall—

(1) in consultation with the Federal Financial Institutions Examination Council and the advisory group established in section 1505(c), develop and issue guidelines for the Federal Housing Administration to determine the maximum permitted loan amount based on the value of the property for all covered loans made on properties with an energy efficiency report that meets the requirements of section 1502(c)(2); and

(2) in consultation with the Secretary, issue guidelines for the Federal Housing Administration to determine the estimated energy savings under subsection (c) for properties with an energy efficiency report.

(b) Requirements.—The enhanced energy efficiency underwriting valuation guidelines required under subsection (a) shall include—

(1) a requirement that if an energy efficiency report that meets the requirements of section 1502(c)(2) is voluntarily provided to the mortgagee, such report shall be used by the mortgagee or the Federal Housing Administration to determine the estimated energy savings of the subject property; and

(2) a requirement that the estimated energy savings of the subject property be added to the appraised value of the subject property by a mortgagee or the Federal Housing Administration for the purpose of determining the loan-to-value ratio of the subject property, unless the appraisal includes the value of the overall energy efficiency of the subject property, using methods to be established under the guidelines issued under subsection (a).

(c) Determination of estimated energy savings.—

(1) AMOUNT OF ENERGY SAVINGS.—The amount of estimated energy savings shall be determined by calculating the difference between the estimated energy costs for the average comparable houses, as determined in guidelines to be issued under subsection (a), and the estimated energy costs for the subject property based upon the energy efficiency report.

(2) DURATION OF ENERGY SAVINGS.—The duration of the estimated energy savings shall be based upon the estimated life of the applicable equipment, consistent with the rating system used to produce the energy efficiency report.

(3) PRESENT VALUE OF ENERGY SAVINGS.—The present value of the future savings shall be discounted using the average interest rate on conventional 30-year mortgages, in the manner directed by guidelines issued under subsection (a).

(d) Ensuring consideration of energy efficient features.—Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) 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 inserting after paragraph (3) the following:

“(4) that State certified and licensed appraisers have timely access, whenever practicable, to information from the property owner and the lender that may be relevant in developing an opinion of value regarding the energy-saving improvements or features of a property, such as—

“(A) labels or ratings of buildings;

“(B) installed appliances, measures, systems or technologies;

“(C) blueprints;

“(D) construction costs;

“(E) financial or other incentives regarding energy-efficient components and systems installed in a property;

“(F) utility bills;

“(G) energy consumption and bench­marking data; and

“(H) third-party verifications or representations of energy and water efficiency performance of a property, observing all financial privacy requirements adhered to by certified and licensed appraisers, including section 501 of the Gramm-Leach-Bliley Act (15 U.S.C. 6801).

Unless a property owner consents to a lender, an appraiser, in carrying out the requirements of paragraph (4), shall not have access to the commercial or financial information of the owner that is privileged or confidential.”.

(e) Transactions requiring state certified appraisers.—Section 1113 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended—

(1) in paragraph (1), by inserting before the semicolon the following: “, or any real property on which the appraiser makes adjustments using an energy efficiency report”; and

(2) in paragraph (2), by inserting after before the period at the end the following: “, or an appraisal on which the appraiser makes adjustments using an energy efficiency report”.

(f) Protections.—

(1) AUTHORITY TO IMPOSE LIMITATIONS.—The guidelines to be issued under subsection (a) shall include such limitations and conditions as determined by the Secretary of Housing and Urban Development to be necessary to protect against meaningful under or over valuation of energy cost savings or duplicative counting of energy efficiency features or energy cost savings in the valuation of any subject property that is used to determine a loan amount.

(2) ADDITIONAL AUTHORITY.—At the end of the 7-year period following the implementation of enhanced eligibility and underwriting valuation requirements under this subtitle, the Secretary of Housing and Urban Development may modify or apply additional exceptions to the approach described in subsection (b), where the Secretary of Housing and Urban Development finds that the unadjusted appraisal will reflect an accurate market value of the efficiency of the subject property or that a modified approach will better reflect an accurate market value.

(g) Applicability and implementation date.—Not later than 3 years after the date of enactment of this Act, and before December 31, 2019, the Federal Housing Administration shall implement the guidelines required under this section, which shall—

(1) apply to any covered loan for the sale, or refinancing of any loan for the sale, of any home; and

(2) be available on any residential real property, including individual units of condominiums and cooperatives, that qualifies for a covered loan.

SEC. 1504. Monitoring.

Not later than 1 year after the date on which the enhanced eligibility and underwriting valuation requirements are implemented under this subtitle, and every year thereafter, the Federal Housing Administration shall issue and make available to the public a report that—

(1) enumerates the number of covered loans of the Federal Housing Administration for which there was an energy efficiency report, and that used energy efficiency appraisal guidelines and enhanced loan eligibility requirements;

(2) includes the default rates and rates of foreclosures for each category of loans; and

(3) describes the risk premium, if any, that the Federal Housing Administration has priced into covered loans for which there was an energy efficiency report.

SEC. 1505. Rulemaking.

(a) In general.—The Secretary of Housing and Urban Development shall prescribe regulations to carry out this subtitle, in consultation with the Secretary and the advisory group established in subsection (c), which may contain such classifications, differentiations, or other provisions, and may provide for such proper implementation and appropriate treatment of different types of transactions, as the Secretary of Housing and Urban Development determines are necessary or proper to effectuate the purposes of this subtitle, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.

(b) Rule of construction.—Nothing in this subtitle shall be construed to authorize the Secretary of Housing and Urban Development to require any homeowner or other party to provide energy efficiency reports, energy efficiency labels, or other disclosures to the Federal Housing Administration or to a mortgagee.

(c) Advisory group.—To assist in carrying out this subtitle, the Secretary of Housing and Urban Development shall establish an advisory group, consisting of individuals representing the interests of—

(1) mortgage lenders;

(2) appraisers;

(3) energy raters and residential energy consumption experts;

(4) energy efficiency organizations;

(5) real estate agents;

(6) home builders and remodelers;

(7) consumer advocates;

(8) State energy officials; and

(9) others as determined by the Secretary of Housing and Urban Development.

SEC. 1506. Additional study.

(a) In general.—Not later than 18 months after the date of enactment of this Act, the Secretary of Housing and Urban Development shall reconvene the advisory group established in section 1505(c), in addition to water and locational efficiency experts, to advise the Secretary of Housing and Urban Development on the implementation of the enhanced energy efficiency underwriting criteria established in sections 1502 and 1503.

(b) Recommendations.—The advisory group established in section 1505(c) shall provide recommendations to the Secretary of Housing and Urban Development on any revisions or additions to the enhanced energy efficiency underwriting criteria deemed necessary by the group, which may include alternate methods to better account for home energy costs and additional factors to account for substantial and regular costs of homeownership such as location-based transportation costs and water costs. The Secretary of Housing and Urban Development shall forward any legislative recommendations from the advisory group to Congress for its consideration.

TITLE IIInfrastructure

subtitle ACybersecurity

SEC. 2001. Sanctions for disclosure of critical electric infrastructure information.

Section 215A(d)(2) of the Federal Power Act (16 U.S.C. 824o–1(d)(2)) is amended by striking subparagraph (C) and inserting the following:

“(C) (i) ensure there are appropriate sanctions in place for Commissioners and former Commissioners who knowingly and willfully disclose critical electric infrastructure information in a manner that is not authorized under this section, with such sanctions to include, at a minimum, the potential loss of access to critical electric infrastructure information and the potential public issuance of letters of reprimand; and

“(ii) ensure there are appropriate sanctions in place for officers, employees, or agents of the Commission or the Department of Energy who knowingly and willfully disclose critical electric infrastructure information in a manner that is not authorized under this section; and”.

SEC. 2002. 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).

(b) 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 and third-party control systems, 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 2018 through 2026.

(c) 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 collaborate with 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 2018 through 2026.

(d) 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 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 2018 through 2026.

(e) Modeling and assessing energy infrastructure risk.—

(1) IN GENERAL.—The Secretary shall develop an advanced energy security program to secure energy networks, 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 2018 through 2026.

(f) 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.

(g) 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 BStrategic Petroleum Reserve

SEC. 2101. Strategic petroleum reserve drawdown and sale.

Section 403 of the Bipartisan Budget Act of 2015 (Public Law 114–74; 129 Stat. 589) is amended by adding at the end the following:

“(d) Increase; Limitation.—

“(1) INCREASE.—The Secretary of Energy may increase the drawdown and sales under paragraphs (1) through (8) of subsection (a) as the Secretary of Energy determines to be appropriate to maximize the financial return to United States taxpayers.

“(2) LIMITATION.—The Secretary of Energy shall not drawdown or conduct sales of crude oil under this section after the date on which a total of $5,050,000,000 has been deposited in the general fund of the Treasury from sales authorized under this section.”.

subtitle CTrade

SEC. 2201. Action on applications to export liquefied natural gas.

(a) Decision deadline.—For proposals that must also obtain authorization from the Federal Energy Regulatory Commission or the Maritime Administration to site, construct, expand, or operate liquefied natural gas export facilities, the Secretary shall issue a final decision on any application for the authorization to export natural gas under section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)) not later than 45 days after the later of—

(1) the conclusion of the review to site, construct, expand, or operate the liquefied natural gas export facilities required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or

(2) the date of enactment of this Act.

(b) Conclusion of review.—For purposes of subsection (a), review required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall be considered concluded when the lead agency—

(1) for a project requiring an Environmental Impact Statement, publishes a Final Environmental Impact Statement;

(2) for a project for which an Environmental Assessment has been prepared, publishes a Finding of No Significant Impact; or

(3) determines that an application is eligible for a categorical exclusion pursuant to National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) implementing regulations.

(c) Judicial review.—

(1) IN GENERAL.—Except for review in the Supreme Court, the United States Court of Appeals for the District of Columbia Circuit or the circuit in which the liquefied natural gas export facility will be located pursuant to an application described in subsection (a) shall have original and exclusive jurisdiction over any civil action for the review of—

(A) an order issued by the Secretary with respect to such application; or

(B) the failure of the Secretary to issue a final decision on such application.

(2) ORDER.—If the Court in a civil action described in paragraph (1) finds that the Secretary has failed to issue a final decision on the application as required under subsection (a), the Court shall order the Secretary to issue the final decision not later than 30 days after the order of the Court.

(3) EXPEDITED CONSIDERATION.—The Court shall—

(A) set any civil action brought under this subsection for expedited consideration; and

(B) set the matter on the docket as soon as practicable after the filing date of the initial pleading.

(4) TRANSFERS.—In the case of an application described in subsection (a) for which a petition for review has been filed—

(A) upon motion by an applicant, the matter shall be transferred to the United States Court of Appeals for the District of Columbia Circuit or the circuit in which a liquefied natural gas export facility will be located pursuant to an application described in section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)); and

(B) the provisions of this section shall apply.

SEC. 2202. Public disclosure of liquefied natural gas export destinations.

Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the following:

“(g) Public Disclosure of LNG Export Destinations.—

“(1) IN GENERAL.—In the case of any authorization to export liquefied natural gas, the Secretary of Energy shall require the applicant to report to the Secretary of Energy the names of the 1 or more countries of destination to which the exported liquefied natural gas is delivered.

“(2) TIMING.—The applicant shall file the report required under paragraph (1) not later than—

“(A) in the case of the first export, the last day of the month following the month of the first export; and

“(B) in the case of subsequent exports, the date that is 30 days after the last day of the applicable month concerning the activity of the previous month.

“(3) DISCLOSURE.—The Secretary of Energy shall publish the information reported under this subsection on the website of the Department of Energy and otherwise make the information available to the public.”.

subtitle DElectricity

SEC. 2301. 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, electric thermal, electromechanical, 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 demonstration 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 2018 through 2027.

(e) No effect on other provisions of law.—Nothing in this subtitle or an amendment made by this subtitle authorizes regulatory actions that would duplicate or conflict with regulatory requirements, mandatory standards, or related processes under section 215 of the Federal Power Act (16 U.S.C. 824o).

(f) Use of funds.—To the maximum extent practicable, in carrying out this section, the Secretary shall ensure that the use of funds to carry out this section is coordinated among different offices within the Grid Modernization Initiative of the Department and other programs conducting energy storage research.

SEC. 2302. Electric 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 grid 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, including, as may be appropriate, to the Electric Reliability Organization under section 215 of the Federal Power Act (16 U.S.C. 824o). The Electric Reliability Organization shall not be under any obligation to establish any process to consider such recommendations.

(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 all sectors of the electric power industry;

(6) academic institutions;

(7) independent research institutes; and

(8) other entities.

(d) Effect.—Nothing in this section grants any person a right to receive or review confidential, proprietary, or otherwise protected information concerning grid architecture or scenarios.

SEC. 2303. Hybrid micro-grid systems for isolated and resilient communities.

(a) Definitions.—In this section:

(1) HYBRID MICRO-GRID SYSTEM.—The term “hybrid micro-grid 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) MICRO-GRID SYSTEM.—The term “micro-grid system” means a standalone electrical system that uses grid-scale energy storage.

(4) STRATEGY.—The term “strategy” means the strategy developed pursuant to subsection (b)(2)(B).

(b) Program.—

(1) ESTABLISHMENT.—The Secretary shall establish a program to promote the development of—

(A) hybrid micro-grid systems for isolated communities; and

(B) micro-grid systems to increase the resilience of critical infrastructure.

(2) PHASES.—The program established under paragraph (1) shall be divided into the following phases:

(A) Phase I, which shall consist of the development of a feasibility assessment for—

(i) hybrid micro-grid systems in isolated communities; and

(ii) micro-grid 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 micro-grid 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 be carried out in parallel with Phase II and consist of the development of an implementation strategy to promote the development of micro-grid systems that increase the resilience of critical infrastructure.

(D) Phase IV, which shall consist of cost-shared demonstration projects, based upon the strategies developed under subparagraph (B) that include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid.

(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 micro-grid 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 micro-grid system;

(C) opportunities for improving the efficiency of existing hybrid micro-grid systems;

(D) the capacity of the local workforce to operate, maintain, and repair a hybrid micro-grid system;

(E) opportunities to develop the capacity of the local workforce to operate, maintain, and repair a hybrid micro-grid 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 micro-grid 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 micro-grid system;

(H) input of traditional knowledge from local leaders of isolated communities in the development of a hybrid micro-grid system;

(I) the impact of hybrid micro-grid 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 until calendar year 2026, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the efforts to implement the program established under subsection (b)(1) and the status of the strategy developed under subsection (b)(2)(B).

SEC. 2304. 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, in consultation with the steering committee established under paragraph (3), 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 encompassing a diverse range of technologies that can be adapted for State and regional applications by regulators and policymakers;

(B) facilitates the modernization of the electric grid and associated communications networks to achieve the objectives described in paragraph (2);

(C) ensures a reliable, resilient, affordable, safe, and secure electric grid; and

(D) acknowledges and accounts for different priorities, electric systems, and rate structures across States and regions.

(2) OBJECTIVES.—The pathways established under paragraph (1) shall facilitate achievement of as many of the following objectives as practicable:

(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 of policies for investment in the electric grid.

(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.

(I) Reduced cost of service for consumers.

(J) Diversification of generation sources.

(3) STEERING COMMITTEE.—Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a steering committee to help develop 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 Federal Energy Regulatory Commission;

(B) the National Laboratories;

(C) States;

(D) State regulatory authorities;

(E) transmission organizations;

(F) representatives of all sectors of the electric power industry;

(G) institutions of higher education;

(H) independent research institutes; and

(I) other entities.

(b) Technical assistance.—The Secretary may provide technical assistance to States, Indian tribes, or units of local government to adopt or implement 1 or more elements of the pathways developed under subsection (a)(1), including on a pilot basis.

SEC. 2305. Performance metrics for electricity infrastructure providers.

(a) In general.—Not later than 2 years after the date of enactment of this Act, the Secretary, in consultation with the steering committee established under section 2304(a)(3), shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes—

(1) an evaluation of the performance of the electric grid as of the date of the report; and

(2) a description of the projected range of measurable costs and benefits associated with the changes evaluated under the scenarios developed under section 2302.

(b) Considerations for development of metrics.—In developing metrics for the evaluation and projections 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 potential costs and measurable benefits value to ratepayers, applying the performance metrics developed under paragraph (1);

(3) identification of tools, resources, and deployment models that may enable improved performance through the adoption of emerging, commercially available or advanced grid technologies or solutions, including—

(A) multicustomer micro-grids;

(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) the role of States and local regulatory authorities in enabling a robust future electric grid 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. 2306. Voluntary State, regional, and local electricity distribution planning.

(a) In general.—On the request of a State, regional organization, or electric utility, the Secretary shall provide assistance to States, regional organizations, and electric utilities to facilitate the development of State, regional, and local 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, regional, and local planning and operations.

(b) Risk and security analysis.—The assessment under subsection (a)(1) shall include—

(1) the evaluation of the physical security, cybersecurity, and associated communications 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) Designation.—The information collected for the assessment and analysis under subsection (a)(1)—

(1) shall be considered to be critical electric infrastructure information under section 215A of the Federal Power Act (16 U.S.C. 824o–1); and

(2) shall only be released in compliance with regulations implementing that section.

(d) Technical assistance.—For the purpose of assisting in the development of 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.

(e) Withdrawal.—A State or any entity that has requested technical assistance under this section may withdraw the request for technical assistance at any time, and on such withdrawal, the Secretary shall terminate all assistance efforts.

(f) Effect.—Nothing in this section authorizes the Secretary to require any State, regional organization, regional reliability entity, asset owner, or asset operator to adopt any model, tool, plan, analysis, or assessment.

SEC. 2307. Authorization of appropriations.

There is authorized to be appropriated to the Secretary to carry out section 2302 through this section $200,000,000 for each of fiscal years 2018 through 2027.

SEC. 2308. Power marketing administration agreements.

(a) In general.—The Secretary of the Interior, with respect to public lands (as defined in section 103(e) of the Federal Land Policy and Management Act (43 U.S.C. 1702(e)), and the Secretary of Agriculture, with respect to National Forest System land, shall provide for continuity of the existing use and occupancy for the transmission of electric energy by any Federal department or agency granted across public lands or National Forest System land.

(b) Agreements.—The Secretary of the Interior or the Secretary of Agriculture, as applicable, within 30 days after receiving a request from the Federal department or agency administering the electric energy transmission facilities, shall, in consultation with that department or agency, initiate agreements regarding the use and occupancy or right-of-way (including vegetation management agreements, where applicable).

SEC. 2309. Report by transmission organizations on distributed energy resources and interconnected micro-grid 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 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) INTERCONNECTED MICRO-GRID SYSTEM.—The term “interconnected micro-grid system” means an electrically distinct system under common control that is—

(A) interconnected to the transmission organization; and

(B) capable of operating in parallel with, or independently from, the bulk-power system.

(3) TRANSMISSION ORGANIZATION.—The term “transmission organization” has the meaning given the term “Transmission Organization” 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 Act, 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 interconnected micro-grid systems; and

(ii) describes the fuel sources and operational characteristics of such distributed energy resources and interconnected micro-grid systems, including, to the extent practicable, a discussion of the benefits and costs associated with the distributed energy resources and interconnected micro-grid systems identified under clause (i);

(B) evaluates, with due regard for operational and economic benefits and costs, the potential for distributed energy resources and interconnected micro-grid 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 availability to the transmission organization of distributed energy resources and interconnected micro-grid systems; and

(ii) potential changes to the operational requirements for, or charges associated with, the availability of distributed energy resources and interconnected micro-grid systems to the transmission organization that would reduce the barriers identified under clause (i).

SEC. 2310. Vegetation management, facility inspection, and operation and maintenance on Federal land containing electric transmission and distribution facilities.

(a) In general.—Title V of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.) is amended by adding at the end the following:

“SEC. 512. Vegetation management, facility inspection, and operation and maintenance relating to electric transmission and distribution facility rights-of-way.

“(a) Definitions.—In this section:

“(1) OWNER; OPERATOR.—The terms ‘owner’ and ‘operator’ include contractors or other agents engaged by the owner or operator of an electric transmission or distribution facility.

“(2) PLAN.—The term ‘plan’ means a vegetation management, facility inspection, and operation and maintenance plan that—

“(A) is prepared by the owner or operator of 1 or more electric transmission or distribution facilities to cover 1 or more electric transmission and distribution rights-of-way; and

“(B) provides for the long-term, cost-effective, efficient, and timely management of facilities and vegetation within the width of the right-of-way and adjacent Federal land to enhance electric reliability, promote public safety, and avoid fire hazards.

“(3) SECRETARY CONCERNED.—The term ‘Secretary concerned’ means—

“(A) the Secretary, with respect to public lands; and

“(B) the Secretary of Agriculture, with respect to National Forest System land.

“(b) Guidance.—

“(1) IN GENERAL.—To enhance the reliability of the electric grid and reduce the threat of wildfire damage to, and wildfire caused by vegetation-related conditions within, electric transmission and distribution rights-of-way and adjacent Federal land, the Secretary concerned shall issue and periodically update guidance to ensure that provisions are appropriately developed and implemented for utility vegetation management, facility inspection, and operation and maintenance of rights-of-way, regardless of the means by which the rights-of-way are established (including by grant, special use authorization, and easement).

“(2) LIMITATION.—The guidance issued under paragraph (1) shall be compatible with mandatory reliability standards established by the Electric Reliability Organization.

“(3) REQUIREMENTS.—The guidance issued under paragraph (1) shall take into account—

“(A) all applicable law, including fire safety and electric system reliability requirements (including reliability standards established by the Electric Reliability Organization under section 215 of the Federal Power Act (16 U.S.C. 824o)); and

“(B) the Memorandum of Understanding on Vegetation Management for Powerline Rights-of-Way between the Edison Electric Institute, Utility Arborist Association, the Department of the Interior, the Department of Agriculture, and the Environmental Protection Agency signed in 2016.

“(4) REQUIRED CONSULTATION.—The guidance issued under paragraph (1) shall be developed in consultation with the owners of transmission and distribution facilities that hold rights-of-way.

“(c) Vegetation management, facility inspection, and operation and maintenance plans.—

“(1) DEVELOPMENT AND SUBMISSION.—Consistent with subsection (b), the Secretary concerned shall provide owners and operators of electric transmission or distribution facilities located on public lands and National Forest System land, as applicable, with the option to develop and submit a plan.

“(2) ERO STANDARDS.—Owners and operators subject to mandatory reliability standards established by the Electric Reliability Organization (or superseding standards) may use those standards as part of the plan.

“(3) PLAN REQUIREMENTS.—A plan developed under paragraph (1) shall—

“(A) identify the applicable transmission or distribution facilities to be maintained;

“(B) take into account operations and maintenance plans for the applicable powerline;

“(C) describe the vegetation management, inspection, and operation and maintenance methods that may be used to comply with all applicable law, including fire safety requirements and reliability standards established by the Electric Reliability Organization;

“(D) include schedules for—

“(i) the applicable owner or operator to notify the Secretary concerned about routine and major maintenance;

“(ii) the applicable owner or operator to request approval from the Secretary concerned about undertaking routine and major maintenance; and

“(iii) the Secretary concerned to respond to a request by an owner or operator under clause (ii); and

“(E) describe processes for—

“(i) identifying changes in conditions; and

“(ii) modifying the approved plan, if necessary.

“(4) REVIEW AND APPROVAL PROCESS.—

“(A) IN GENERAL.—The Secretary concerned shall develop a process for the review and approval of plans submitted under paragraph (1) that—

“(i) includes timelines and benchmarks for—

“(I) the submission of agency comments on the plans and schedules for final decision; and

“(II) the timely review of modifications of the plans in cases in which modifications are necessary;

“(ii) is consistent with applicable law; and

“(iii) includes a process for modifications to a plan in a prompt manner if changed conditions necessitate a modification to a plan.

“(B) CONGRESSIONAL INTENT.—It is the intent of Congress that the process for review and approval of plans under this paragraph shall not exceed 180 days.

“(5) CATEGORIES OF ACTIONS NOT REQUIRING ENVIRONMENTAL ANALYSIS.—With respect to actions carried out under plans submitted under paragraph (1), the Secretary concerned shall identify categories of actions for which neither an environmental impact statement nor an environmental assessment shall be required under section 1508.4 of title 40, Code of Federal Regulations (or a successor regulation).

“(d) Certain owners and operators.—

“(1) IN GENERAL.—The owner or operator of an electric transmission or distribution facility that is not subject to the mandatory reliability standards established by the Electric Reliability Organization or that sold less than or equal to 1,000,000 megawatt hours of electric energy for purposes other than resale during each of the 3 calendar years immediately preceding the date of enactment of the Energy and Natural Resources Act of 2017 may enter into a memorandum of understanding with the Secretary concerned in lieu of a plan under subsection (c).

“(2) MINIMUM REQUIREMENTS.—The Secretary concerned shall ensure that the minimum requirements for a memorandum of understanding under paragraph (1)—

“(A) reflect the relative financial resources of the applicable owner or operator compared to other owners or operators of an electric transmission or distribution facility;

“(B) include schedules as described in subsection (c)(3)(D); and

“(C) comply with applicable law.

“(e) Emergency conditions.—If vegetation has contacted or presents an imminent danger of falling into the electric transmission or distribution line from within or adjacent to an electric transmission or distribution right-of-way, the owner or operator of the electric transmission or distribution lines—

“(1) may prune or remove the vegetation—

“(A) to avoid the disruption of electric service; and

“(B) to eliminate immediate fire and safety hazards; and

“(2) shall notify the appropriate local agent of the Secretary concerned not later than 1 day after the date of the response to emergency conditions.

“(f) Activities that require approval.—

“(1) IN GENERAL.—Except for a circumstance described in paragraph (2), the owner or operator of an electric transmission or distribution facility may conduct vegetation management activities that require approval of the Secretary concerned in accordance with a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d) only with the approval of the Secretary concerned.

“(2) AUTHORIZED ACTIVITIES.—The owner or operator of an electric transmission or distribution facility may conduct vegetation management activities that require approval of the Secretary concerned in accordance with a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d) without the approval of the Secretary concerned if—

“(A) the owner or operator submitted a request to the Secretary concerned in accordance with the applicable schedule in a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d);

“(B) the vegetation management activities proposed in the request under subparagraph (A) are in accordance with a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d); and

“(C) the Secretary concerned fails to respond to the request under subparagraph (A) in accordance with the applicable schedule in a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d).

“(g) Liability.—The Secretary concerned shall not impose strict liability for damages or injury resulting from the Secretary concerned—

“(1) unreasonably withholding or delaying—

“(A) approval of a plan under subsection (c); or

“(B) agreement to enter into a memorandum of understanding under subsection (d); or

“(2) unreasonably failing to adhere to an applicable schedule in a plan approved under subsection (c) or a memorandum of understanding entered into under subsection (d).

“(h) Reporting requirement.—The Secretary concerned shall report requests and actions made under subsection (f) annually on the website of the Secretary concerned.

“(i) Training and guidance.—In consultation with the electric utility industry, the Secretary concerned is encouraged to develop a program to train personnel of the Department of the Interior and the Forest Service involved in vegetation management decisions relating to electric transmission and distribution facilities to ensure that the personnel—

“(1) understand electric system reliability requirements as the requirements relate to vegetation management of transmission and distribution rights-of-way on Federal land, including reliability standards established by the Electric Reliability Organization and fire safety requirements;

“(2) assist owners and operators of electric transmission and distribution facilities in complying with applicable electric reliability and fire safety requirements; and

“(3) encourage and assist willing owners and operators of electric transmission and distribution facilities to incorporate on a voluntary basis vegetation management practices to enhance habitats and forage for pollinators and for other wildlife if the practices are compatible with the integrated vegetation management practices necessary for reliability and safety.

“(j) Implementation.—The Secretary concerned shall—

“(1) not later than 1 year after the date of enactment of this section, propose regulations, or amended existing regulations, to implement this section; and

“(2) not later than 2 years after the date of enactment of this section, finalize regulations, or amended existing regulations, to implement this section.

“(k) Existing vegetation management, facility inspection, and operation and maintenance plans.—Nothing in this section requires an owner or operator to develop and submit a new plan under this section if a plan consistent with this section has already been approved by the Secretary concerned before the date of enactment of this section.”.

(b) Clerical amendment.—The table of contents for the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.), is amended by inserting after the item relating to section 511 the following:


“Sec. 512. Vegetation management, facility inspection, and operation and maintenance relating to electric transmission and distribution facility rights-of-way.”.

SEC. 2311. Study of combined heat and power systems and waste heat to power systems.

(a) Definitions.—In this section:

(1) ADDITIONAL SERVICES.—The term “additional services” means the provision of supplementary power, backup or standby power, maintenance power, or interruptible power to an electric consumer by an electric utility.

(2) WASTE HEAT TO POWER SYSTEM.—

(A) IN GENERAL.—The term “waste heat to power system” means a system that generates electricity through the recovery of waste energy.

(B) EXCLUSION.—The term “waste heat to power system” does not include a system that generates electricity through the recovery of a heat resource from a process the primary purpose of which is the generation of electricity using a fossil fuel.

(3) OTHER TERMS.—

(A) PURPA.—The terms “electric consumer”, “electric utility”, and “interconnection service” have the meanings given those terms in the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.), within the meaning of title I of that Act (16 U.S.C. 2611 et seq.).

(B) EPCA.—The terms “combined heat and power system” and “waste energy” have the meanings given those terms in section 371 of the Energy Policy and Conservation Act (42 U.S.C. 6341).

(b) Study.—

(1) IN GENERAL.—The Secretary, in consultation with the Federal Energy Regulatory Commission and other appropriate entities, may conduct a study of existing rules and procedures relating to interconnection service and additional services throughout the United States for electric generation with nameplate capacity up to 20 megawatts to identify barriers to the deployment of combined heat and power systems and waste heat to power systems.

(2) INCLUSION.—The study under this subsection shall include a review of existing rules and procedures relating to—

(A) determining and assigning costs of interconnection service and additional services;

(B) determining the effectiveness of Federal and State requirements for interconnection service and additional services;

(C) ensuring adequate cost recovery by an electric utility for interconnection service and additional services;

(D) ensuring that electricity rates established for combined heat and power systems and waste heat to power systems are—

(i) just and reasonable; and

(ii) not unduly preferential or discriminatory; and

(E) ensuring the safety and reliability of—

(i) interconnected units; and

(ii) the distribution and transmission networks to which the interconnected units connect.

(3) DUPLICATION OF EFFORT.—The Secretary shall coordinate the study conducted under this subsection with existing and ongoing studies to avoid duplication of effort.

(c) Report.—

(1) IN GENERAL.—As soon as practicable after the date on which the study is completed under subsection (b), the Secretary, in consultation with the Federal Energy Regulatory Commission, shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the study.

(2) INCLUSIONS.—The report submitted under paragraph (1) shall include—

(A) the findings of the Secretary and the Federal Energy Regulatory Commission with respect to the matters studied; and

(B) any administrative and legislative recommendations to address any deployment barriers identified under the study.

SEC. 2312. Bulk-power system reliability impact statement.

Section 215 of the Federal Power Act (16 U.S.C. 824o) is amended by adding at the end the following:

“(l) Reliability impact statement.—

“(1) SOLICITATION BY COMMISSION.—Not later than 15 days after the date on which the head of a Federal agency proposes a major rule (as defined in section 804 of title 5, United States Code) that may significantly affect the reliable operation of the bulk-power system, the Commission shall solicit from the ERO, who shall coordinate with regional entities affected by the proposed rule, a reliability impact statement with respect to the proposed rule.

“(2) REQUIREMENTS.—A reliability impact statement under paragraph (1) shall include a detailed statement on—

“(A) the impact of the proposed rule on the reliable operation of the bulk-power system;

“(B) any adverse effects on the reliable operation of the bulk-power system if the proposed rule was implemented; and

“(C) alternatives to cure the identified adverse reliability impacts, including a no-action alternative.

“(3) SUBMISSION TO COMMISSION AND CONGRESS.—On completion of a reliability impact statement under paragraph (1), the ERO shall submit to the Commission and Congress the reliability impact statement.

“(4) TRANSMITTAL TO HEAD OF FEDERAL AGENCY.—On receipt of a reliability impact statement submitted to the Commission under paragraph (3), the Commission shall transmit to the head of the applicable Federal agency the reliability impact statement prepared under this subsection for inclusion in the public record.

“(5) INCLUSION OF DETAILED RESPONSE IN FINAL RULE.—With respect to a final major rule subject to a reliability impact statement prepared under paragraph (1), the head of the Federal agency shall—

“(A) consider the reliability impact statement;

“(B) give due weight to the technical expertise of the ERO with respect to matters that are the subject of the reliability impact statement; and

“(C) include in the final rule a detailed response to the reliability impact statement that reasonably addresses the detailed statements required under paragraph (2).”.

SEC. 2313. Report by transmission organizations on diversity of supply.

(a) Definitions.—In this section:

(1) ELECTRIC GENERATING CAPACITY RESOURCE.—

(A) IN GENERAL.—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 subject to dispatch by the transmission organization to meet the resource adequacy needs of the systems operated by the transmission organization.

(B) EFFECT.—The term “electric generating capacity resource” does not address non-electric generating resources that are qualified as capacity resources in the tariffs of various transmission organizations as of the date of enactment of this Act.

(2) 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 Act, the Commission (as the term is defined in section 3 of the Federal Power Act (16 U.S.C. 796)) shall submit to each transmission organization that has a tariff on file with the Commission that includes provisions addressing the procurement of electric generating capacity resources, a 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, to the maximum extent practicable—

(A) (i) identifies electric generating capacity resources that are available to the transmission organization as of the date of the report; and

(ii) describes the primary energy sources and operational characteristics of electric capacity resources available, in the aggregate, to the transmission organization;

(B) evaluates, using generally accepted metrics, the current operational performance, in the aggregate, of electric capacity resources;

(C) identifies, for the aggregate of electric generating capacity resources available to the transmission organization—

(i) over the short- and long-term periods in the planning cycle of the transmission organization, reasonable projections concerning the operational and economic risk profile of electric generating capacity resources;

(ii) the projected future needs of the transmission organization for electric generating capacity resources; and

(iii) the availability of transmission facilities and transmission support services necessary to provide for the transmission organization reasonable assurances of essential reliability services, including adequate voltage support; and

(D) assesses whether and to what extent the market rules of the transmission organization—

(i) yield capacity auction clearing prices that promote necessary and prudent investment;

(ii) yield energy market clearing prices that reflect the marginal cost of supply, taking into account transmission constraints and other factors needed to ensure reliable grid operation;

(iii) produce meaningful price signals that clearly indicate where new supply and investment are needed;

(iv) reduce uncertainty or instability resulting from changes to market rules, processes, or protocols;

(v) promote transparency and communication by the market operator to market participants;

(vi) support a diverse generation portfolio and the availability of transmission facilities and transmission support services on a short- and long-term basis necessary to provide reasonable assurances of a continuous supply of electricity for customers of the transmission organization at the proper voltage and frequency; and

(vii) provide an enhanced opportunity for self-supply of electric generating capacity resources by electric cooperatives, Federal power marketing agencies, and State utilities with a service obligation (as those terms are defined in section 217(a)) of the Federal Power Act (16 U.S.C. 824q(a))) in a manner that is consistent with traditional utility business models and does not unduly affect wholesale market prices.

SEC. 2314. Technology demonstration on the distribution system.

(a) In general.—The Secretary shall establish a grant program to carry out eligible projects related 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;

(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; and

(3) be subject to the requirements of section 545(a) of the Energy Security and Independence Act of 2007 (42 U.S.C. 17155(a)).

TITLE IIISupply

subtitle ARenewables

PART IHydroelectric

SEC. 3001. Federal Power Act amendments.

(a) Hydropower regulatory improvements.—

(1) SENSE OF CONGRESS ON USE OF HYDROPOWER RENEWABLE RESOURCES.—It is the sense of Congress that—

(A) hydropower is a renewable resource for purposes of all Federal programs and is an essential source of energy in the United States; and

(B) the United States should increase substantially the capacity and generation of clean, renewable hydropower resources that would improve environmental quality in the United States.

(2) MODIFYING DEFINITION OF RENEWABLE ENERGY TO INCLUDE HYDROPOWER.—Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended—

(A) in subsection (a), by striking “the following amounts” and all that follows through paragraph (3) and inserting “not less than 15 percent in fiscal year 2018 and each fiscal year thereafter shall be renewable energy.”; and

(B) in subsection (b), by striking paragraph (2) and inserting the following:

“(2) RENEWABLE ENERGY.—The term ‘renewable energy’ means energy produced from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or hydropower.”.

(3) LICENSES FOR CONSTRUCTION.—Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended in the first sentence by striking “deem” in the first proviso and all that follows through “Provided further, That no license” in the second proviso and inserting “determine to be necessary for the adequate protection and utilization of such reservation: Provided further, That no license”.

(4) PRELIMINARY PERMITS.—Section 5 of the Federal Power Act (16 U.S.C. 798) is amended—

(A) in subsection (a), by striking “three” and inserting “4”; and

(B) in subsection (b)—

(i) by striking “Commission may extend the period of a preliminary permit once for not more than 2 additional years beyond the 3 years” and inserting the following: “Commission may—

“(1) extend the period of a preliminary permit once for not more than 4 additional years beyond the 4 years”;

(ii) by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(2) after the end of an extension period granted under paragraph (1), issue an additional permit to the permittee if the Commission determines that there are extraordinary circumstances that warrant the issuance of the additional permit.”.

(5) TRANSFERS.—Section 7 of the Federal Power Act (16 U.S.C. 800) is amended by adding at the end the following:

“(d) Transfers.—Notwithstanding section 5, and regardless of whether the holder of a preliminary permit for a closed-loop pumped storage project (as defined under section 6(e)) of the Hydropower Regulatory Efficiency Act of 2013 (16 U.S.C. 797 note; Public Law 113–23)) claimed municipal preference under subsection (a) when obtaining the permit, on request by a municipality, the Commission, to facilitate development of a closed-loop pumped storage project, may—

“(1) add entities as joint permittees following issuance of a preliminary permit; and

“(2) transfer a license in part to 1 or more nonmunicipal entities as co-licensees with a municipality.”.

(6) TIME LIMIT FOR CONSTRUCTION OF PROJECT WORKS.—Section 13 of the Federal Power Act (16 U.S.C. 806) is amended in the second sentence by striking “once but not longer than two additional years” and inserting “for not more than 8 additional years,”.

(7) OPERATION OF NAVIGATION FACILITIES.—Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by striking the second, third, and fourth sentences.

(8) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.—Section 33 of the Federal Power Act (16 U.S.C. 823d) is amended—

(A) in subsection (a)—

(i) in paragraph (1), by striking “deems” and inserting “determines”;

(ii) in paragraph (2)(B), in the matter preceding clause (i), by inserting “determined to be necessary” before “by the Secretary”;

(iii) by striking paragraph (4); and

(iv) by striking paragraph (5);

(B) in subsection (b)—

(i) by striking paragraph (4); and

(ii) by striking paragraph (5); and

(C) by adding at the end the following:

“(c) Further conditions.—This section applies to any further conditions or prescriptions proposed or imposed pursuant to section 4(e), 6, or 18.”.

(b) Protection of private property rights in hydropower licensing.—

(1) LICENSES.—Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended, in the third sentence—

(A) by striking “and” after “recreational opportunities,”; and

(B) by inserting “, and minimizing infringement on the useful exercise and enjoyment of property rights held by nonlicensees” after “aspects of environmental quality”.

(2) PRIVATE LANDOWNERSHIP.—Section 10 of the Federal Power Act (16 U.S.C. 803) is amended—

(A) in subsection (a)(1), by inserting “, including minimizing infringement on the useful exercise and enjoyment of property rights held by nonlicensees” after “section 4(e)”; and

(B) by adding at the end the following:

“(k) Private landownership.—In developing any recreational resource within the project boundary, the licensee shall consider private landownership as a means to encourage and facilitate—

“(1) private investment; and

“(2) increased tourism and recreational use.”.

(c) Licensing process improvements and coordination.—Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended by adding at the end the following:

“SEC. 34. Licensing process improvements.

“(a) License studies.—

“(1) IN GENERAL.—To facilitate the timely and efficient completion of the license proceedings under this part, the Commission, in consultation with applicable Federal and State agencies and interested members of the public, shall—

“(A) compile current best practices in performing studies required in such license proceedings, including methodologies and the design of studies to assess the full range of environmental impacts of a project that reflect the best available science;

“(B) compile a comprehensive collection of studies and data accessible to the public that could be used to inform license proceedings; and

“(C) encourage license applicants and agencies to develop and use, for the purpose of fostering timely and efficient consideration of license applications, a limited number of open-source methodologies and tools applicable across a wide array of projects, including water balance models and streamflow analyses.

“(2) USE OF EXISTING STUDIES.—To the maximum extent practicable and in accordance with the best available science, the Commission and other Federal and State agencies considering an aspect of an application for Federal authorization (as defined in section 35(a)) shall—

“(A) use relevant existing studies and data; and

“(B) avoid duplicating current, existing studies that are applicable to the relevant project.

“(3) BIOLOGICAL OPINIONS.—To the maximum extent practicable, the Secretary of Commerce and the Secretary of the Interior shall ensure that relevant offices within the National Marine Fisheries Service and the United States Fish and Wildlife Service prepare any biological opinion under section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) that forms the basis for a prescription under section 18 on a concurrent rather than sequential basis.

“(b) Interagency rotations.—

“(1) IN GENERAL.—Beginning not later than 1 year after the date of enactment of this section, the Commission, the Secretary of Agriculture, the Secretary of Commerce, and the Secretary of the Interior shall encourage greater interagency experience among executive branch personnel on matters involving implementation of this part.

“(2) PERFORMANCE EVALUATIONS AND HIRING QUALIFICATIONS.—The encouragement provided by the Commission and the Secretaries under paragraph (1) may include adding, for appropriate categories of positions, as determined by the Commission and the Secretaries, participation and willingness to participate in interagency rotational service as—

“(A) factors in annual performance evaluations; and

“(B) hiring qualifications.

“(c) Considerations for relicensing terms.—

“(1) IN GENERAL.—In determining the term of a new license issued when an existing license under this part expires, the Commission shall take into consideration, among other things—

“(A) project-related investments by the licensee under the new license; and

“(B) project-related investments by the licensee over the term of the existing license.

“(2) EQUAL WEIGHT.—The determination of the Commission under paragraph (1) shall give equal weight to—

“(A) investments by the licensee to implement the new license under this part, including investments relating to redevelopment, new construction, new capacity, efficiency, modernization, rehabilitation, safety improvements, and environmental, recreation, and other protection, mitigation, or enhancement measures required or authorized by the new license; and

“(B) investments by the licensee over the term of the existing license (including any terms under annual licenses) beyond the investments required by the license on issuance of the license that—

“(i) resulted in redevelopment, new construction, new capacity, efficiency, modernization, rehabilitation, safety improvements, and environmental, recreation, and other protection, mitigation, or enhancement measures conducted over the term of the existing license; and

“(ii) did not result in the extension of the term of the license by the Commission.

“SEC. 35. Licensing process coordination.

“(a) Definition of Federal authorization.—In this section, the term ‘Federal authorization’ means any authorization required under Federal law (including any license, permit, special use authorization, certification, opinion, consultation, determination, or other approval) with respect to—

“(1) a project licensed under section 4 or 15; or

“(2) a facility exempted under—

“(A) section 30; or

“(B) section 405(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705(d)).

“(b) Designation as lead agency.—

“(1) IN GENERAL.—The Commission shall act as the lead agency for the purposes of coordinating all applicable Federal authorizations and for the purposes of complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to a Federal authorization.

“(2) OTHER AGENCIES.—Each Federal and State agency considering an aspect of an application for Federal authorization shall cooperate with the Commission.

“(c) Schedule.—

“(1) TIMING FOR ISSUANCE.—It is the sense of Congress that all Federal authorizations required for a project or facility, including a license of the Commission, should be issued by the date that is 3 years after the date on which an application is considered to be complete by the Commission.

“(2) COMMISSION SCHEDULE.—

“(A) IN GENERAL.—The Commission, in accordance with the rule issued under subparagraph (C), shall establish a case-by-case schedule for the issuance of all Federal authorizations.

“(B) REQUIREMENTS.—In establishing the schedule under subparagraph (A), the Commission shall—

“(i) consult and cooperate with the Federal and State agencies responsible for a Federal authorization;

“(ii) ensure the expeditious completion of all proceedings relating to a Federal authorization; and

“(iii) comply with applicable schedules established by Federal law with respect to a Federal authorization.

“(C) RULEMAKING.—

“(i) COMMISSION RULEMAKING TO ESTABLISH PROCESS TO SET SCHEDULE.—Not later than 180 days after the date of enactment of this section, the Commission, in consultation with the appropriate Federal and State agencies and after providing for notice and public comment, shall issue a rule establishing a process for setting a schedule, to be applied on a case-by-case basis, for applications for Federal authorization filed under this part.

“(ii) CONSIDERATIONS.—In issuing a rule under this subparagraph, the Commission shall consider including guidelines so that the schedule for each Federal authorization—

“(I) includes deadlines for actions by—

“(aa) any Federal or State agency that may consider an aspect of an application for the Federal authorization;

“(bb) the applicant;

“(cc) the Commission; and

“(dd) other participants in a proceeding;

“(II) is developed in consultation with the applicant and any Federal or State agency that may consider an aspect of an application for the applicable Federal authorization;

“(III) provides an opportunity for any Federal or State agency that may consider an aspect of an application for the applicable Federal authorization to identify and resolve issues of concern;

“(IV) complies with applicable schedules established under Federal and State law;

“(V) ensures expeditious completion of all proceedings required under Federal and State law, to the maximum extent practicable;

“(VI) facilitates completion of Federal and State agency studies, reviews, and any other procedures required prior to, or concurrent with, the preparation of the environmental document of the Commission required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), to the maximum extent practicable; and

“(VII) provides a procedure for any modification to the schedule.

“(3) RESOLUTION OF INTERAGENCY DISPUTES.—If the Federal agency fails to adhere to the schedule established by the Commission under paragraph (2), or if the final condition of the Secretary of Agriculture under section 4(e) or prescription under section 18 has been unreasonably delayed in derogation of the schedule established under paragraph (2), or if a proposed alternative condition or prescription has been unreasonably denied, or if a final condition or prescription would be inconsistent with the purposes of this part or other applicable law, the Commission may refer the matter to the Director of the Office of Management and Budget, acting in consultation with the Chair of the Council on Environmental Quality, as appropriate—

“(A) to ensure timely participation;

“(B) to ensure a timely decision;

“(C) to mediate the dispute; or

“(D) to refer the matter to the President.

“(d) Application processing.—

“(1) IN GENERAL.—Federal and State agencies may allow an applicant seeking a Federal authorization to fund a third-party contractor selected by the Federal or State agency to assist in reviewing the application.

“(2) DIRECT FUNDING FOR EXPEDITED CONSIDERATION.—

“(A) IN GENERAL.—Beginning in fiscal year 2018, a Federal or State agency may accept and expend funds contributed by a license applicant seeking a Federal authorization to carry out an activity that directly and meaningfully contributes to expediting the consideration by the agency of the application.

“(B) RELATION TO EXISTING DISCRETIONARY FUNDS.—Any funds received by an agency under this paragraph may be used only to carry out activities that would not otherwise occur within the same timeframe using discretionary funds provided in appropriations Acts.

“(3) CONSIDERATION OF COSTS.—Any costs associated with a third-party contractor under paragraph (1), and any expenditure of funds received by an agency under paragraph (2), shall not be considered costs of the United States for the administration of this part under section 10(e).

“(4) EFFECT ON APPLICATION CONSIDERATION.—In carrying out this subsection, the Commission or an applicable agency shall ensure that the use of license applicant funds under paragraph (1) or (2) will not impact impartial decisionmaking with respect to the responsibilities of the agency, either substantively or procedurally, under this part or any other Federal law, consistent with the regulations for implementing the procedural provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) under parts 1500 through 1508 of title 40, Code of Federal Regulations (or successor regulations).

“(5) VOLUNTARY FUNDING.—Nothing in this subsection requires or compels a license applicant—

“(A) to fund a third-party contractor under paragraph (1); or

“(B) to contribute direct funding for expedited consideration under paragraph (2).

“(6) EXISTING THIRD-PARTY CONTRACTS.—Nothing in this section affects any third-party contract in effect as of the date of enactment of this section under section 2403 of the Energy Policy Act of 1992 (16 U.S.C. 797d) (as in effect on the day before the date of enactment of this section).

“(7) ACCOUNTABILITY.—

“(A) REPORTS.—A Federal or State agency shall submit to the Commission for each fiscal year a report that describes the manner in which the agency used funds under this subsection during that fiscal year.

“(B) AUDITS.—The Comptroller General of the United States shall conduct periodic audits to ensure that Federal and State agencies use funds in accordance with this subsection.

“(e) Consolidated record.—

“(1) IN GENERAL.—The Commission shall maintain official consolidated records of all license proceedings under this part.

“(2) SUBMISSION OF RECOMMENDATIONS.—Any Federal or State agency that is providing recommendations with respect to a license proceeding under this part shall submit to the Commission for inclusion in the consolidated record relating to the license proceeding maintained under paragraph (1)—

“(A) the recommendations;

“(B) the rationale for the recommendations; and

“(C) any supporting materials relating to the recommendations.

“(3) WRITTEN STATEMENT.—

“(A) IN GENERAL.—In a case in which a Federal agency is making a determination with respect to a covered measure (as defined in section 36(a)), the head of the Federal agency shall include in the consolidated record a written statement demonstrating that the Federal agency gave equal consideration to the effects of the covered measure on—

“(i) energy supply, distribution, cost, and use;

“(ii) flood control;

“(iii) navigation;

“(iv) water supply; and

“(v) air quality and the preservation of other aspects of environmental quality.

“(B) INFORMATION FROM OTHER AGENCIES.—In preparing a written statement under subparagraph (A), the head of a Federal agency may make use of information produced or made available by other agencies with relevant expertise in the factors described in clauses (i) through (v) of that subparagraph.

“(f) Conditions.—The Secretary of Agriculture shall not delegate the authority to require a condition under section 4(e), other than to the Chief of the Forest Service or the Under Secretary for Natural Resources and Environment.

“(g) Interagency communications.—

“(1) IN GENERAL.—Interagency cooperation in the preparation of environmental documents under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and interagency communications relating to licensing process coordination under this section shall not—

“(A) be considered to be ex parte communications under Commission rules; or

“(B) preclude an agency from participating in a licensing proceeding under this part.

“(2) SEPARATION OF STAFF.—Notwithstanding paragraph (1), to the extent the Commission determines necessary, the Commission may require Federal and State agencies participating as cooperating agencies under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) to demonstrate a separation of staff cooperating with the Commission and staff that may participate in an intervention in the applicable proceeding under this part.

“SEC. 36. Trial-type hearings.

“(a) Definition of covered measure.—In this section, the term ‘covered measure’ means—

“(1) a condition prescribed under section 4(e), including an alternative condition proposed under section 33(a);

“(2) fishways prescribed under section 18, including an alternative prescription proposed under section 33(b); or

“(3) any further condition or prescription pursuant to section 4(e), 6, or 18.

“(b) Authorization of trial-type hearing.—The license applicant (including an applicant for a license under section 15) and any party to the proceeding shall be entitled to a determination on the record, after opportunity for a trial-type hearing of not more than 120 days, on any disputed issues of material fact with respect to an applicable covered measure.

“(c) Deadline for request.—A request for a trial-type hearing under this section shall be submitted not later than 60 days after the date on which, as applicable—

“(1) the Secretary submits the condition under section 4(e) or prescription under section 18; or

“(2) (A) the Commission publishes notice of the intention to use the reserved authority of the Commission to order a further condition under section 6; or

“(B) the Secretary exercises reserved authority under the license to prescribe, submit, or revise any condition to a license under the first proviso of section 4(e) or fishway prescribed under section 18, as appropriate.

“(d) No requirement to exhaust.—By electing not to request a trial-type hearing under subsection (c), a license applicant and any other party to a license proceeding shall not be considered to have waived the right of the applicant or other party to raise any issue of fact or law in a non-trial-type proceeding, but no issue may be raised for the first time on rehearing or judicial review of the license decision of the Commission.

“(e) Administrative Law Judge.—

“(1) IN GENERAL.—All disputed issues of material fact raised by a party in a request for a trial-type hearing submitted under subsection (c) shall be determined in a single trial-type hearing to be conducted by an Administrative Law Judge within the Office of Administrative Law Judges and Dispute Resolution of the Commission, in accordance with the Commission rules of practice and procedure under part 385 of title 18, Code of Federal Regulations (or successor regulations), and within the timeframe established by the Commission for each license proceeding (including a proceeding for a license under section 15) under section 35(c).

“(2) REQUIREMENT.—The trial-type hearing shall include the opportunity—

“(A) to undertake discovery; and

“(B) to cross-examine witnesses.

“(f) Stay.—The Administrative Law Judge may impose a stay of a trial-type hearing under this section for a period of not more than 120 days to facilitate settlement negotiations relating to resolving the disputed issues of material fact with respect to the covered measure.

“(g) Decision of Administrative Law Judge.—

“(1) CONTENTS.—The decision of the Administrative Law Judge shall contain—

“(A) findings of fact on all disputed issues of material fact;

“(B) conclusions of law necessary to make the findings of fact, including rulings on materiality and the admissibility of evidence; and

“(C) reasons for the findings and conclusions.

“(2) LIMITATION.—The decision of the Administrative Law Judge shall not contain conclusions as to whether—

“(A) any condition or prescription should be adopted, modified, or rejected; or

“(B) any alternative condition or prescription should be adopted, modified, or rejected.

“(3) FINALITY.—A decision of an Administrative Law Judge under this section with respect to a disputed issue of material fact shall not be subject to further administrative review.

“(4) SERVICE.—The Administrative Law Judge shall serve the decision on each party to the hearing and forward the complete record of the hearing to the Commission and the Secretary that proposed the original condition or prescription.

“(h) Secretarial determination.—

“(1) IN GENERAL.—Not later than 60 days after the date on which the Administrative Law Judge issues the decision under subsection (g) and in accordance with the schedule established by the Commission under section 35(c), the Secretary proposing a condition under section 4(e) or a prescription under section 18 shall file with the Commission a final determination to adopt, modify, or withdraw any condition or prescription that was the subject of a hearing under this section, based on the decision of the Administrative Law Judge.

“(2) RECORD OF DETERMINATION.—The final determination of the Secretary filed with the Commission shall identify the reasons for the decision and any considerations taken into account that were not part of, or inconsistent with, the findings of the Administrative Law Judge and shall be included in the consolidated record in section 35(e).

“(i) Licensing decision of Commission.—Notwithstanding sections 4(e) and 18, if the Commission finds that the final condition or prescription of the Secretary is inconsistent with the purposes of this part or other applicable law, the Commission may refer the matter to the Director of the Office of Management and Budget, acting in consultation with the Chair of the Council on Environmental Quality, as appropriate, under section 35(c)(3).

“(j) Judicial review.—The decision of the Administrative Law Judge and the record of determination of the Secretary shall be included in the record of the applicable licensing proceeding and subject to judicial review of the final licensing decision of the Commission under section 313(b).”.

SEC. 3002. Evaluation of expedited licensing for qualified project upgrades.

(a) Definition of project.—In this section, the term “project” has the meaning given the term in section 3 of the Federal Power Act (16 U.S.C. 796).

(b) Evaluation.—The Federal Energy Regulatory Commission (referred to in this part as the “Commission”) shall evaluate the potential to implement part I of the Federal Power Act (16 U.S.C. 792 et seq.) more expeditiously for qualified project upgrades described in subsection (c).

(c) Qualified project upgrade described.—A qualified project upgrade under subsection (b) shall be an amendment to the existing license of a project that involves changes that—

(1) (A) are limited to the powerhouse equipment of the project; or

(B) would result in environmental protection, mitigation, or enhancement measures to benefit fish and wildlife resources or other natural and cultural resources; and

(2) (A) if carried out, would be unlikely—

(i) to adversely affect any species listed as threatened or endangered under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); or

(ii) to result in the destruction or adverse modification of critical habitat in accordance with section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536);

(B) would be consistent with any applicable comprehensive plan under section 10(a) of the Federal Power Act (16 U.S.C. 803(a));

(C) would result in insignificant environmental effects; and

(D) would be unlikely to adversely affect water quality and water supply.

(d) Changes to policies and regulations.—

(1) IN GENERAL.—In carrying out the evaluation under subsection (b), the Commission may make the following changes to applicable policies and regulations:

(A) With respect to each type of qualified project upgrade described in subsection (c), establishing a qualifying determination process consisting of the following steps:

(i) A license applicant shall file a notice of intent to amend an existing license of a project if the project is a qualified project upgrade described in subsection (c).

(ii) Not later than 15 days after receipt of a notice of intent filed under clause (i), the Commission shall make an initial determination of whether the project is a qualified project upgrade under subsection (c).

(iii) If the Commission makes an affirmative initial determination under clause (ii), the Commission shall make available to the public the notice of intent filed under clause (i).

(iv) If any person contests the initial determination of the Commission under clause (ii) during the 45-day period following the date on which the notice of intent is made publicly available under clause (iii), the Commission shall promptly issue a written determination as to whether the project is a qualified project upgrade under subsection (c).

(v) If no person contests the initial determination of the Commission under clause (ii) during the 45-day period following the date on which the notice of intent is made publicly available under clause (iii), the project shall be considered to be a qualified project upgrade under subsection (c).

(B) With respect to a qualified project upgrade described in subsection (c), making the following changes to the application process, as applicable:

(i) If an application for an amendment to the existing license provides for the addition of a new generating unit, not automatically considering that addition by itself to be an amendment that involves additional capacity, as described in sections 4.201(b) and 4.38(a)(6)(iv) of title 18, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(ii) Requiring fewer exhibits as part of the amendment application, as described in section 4.201(b) of title 18, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(iii) Reviewing and updating, as necessary, the existing categorical exclusions described in section 380.4 of title 18, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(C) Such other changes with respect to qualified project upgrades as the Commission determines to be appropriate and in accordance with applicable law.

(2) PUBLIC INPUT.—

(A) EVALUATION.—In carrying out paragraph (1), the Commission shall hold—

(i) 1 or more public workshops; and

(ii) a public comment period.

(B) POLICY OR REGULATORY CHANGES.—In carrying out paragraph (1), the Commission shall consider public comments before finalizing any change to policy or regulation.

(e) Schedule.—In carrying out this section, the Commission shall comply with the following schedule:

(1) Not later than 60 days after the date of enactment of this Act, initiate the evaluation under subsection (b).

(2) Not later than 90 days after the date on which the evaluation is initiated under paragraph (1), hold 1 or more public workshops, as described in subsection (d)(2)(A).

(3) Not later than 120 days after the date on which the first public workshop is held under paragraph (2), complete a public comment period.

(4) Not later than 90 days after the date on which the public comment period is completed under paragraph (3), propose any changes to existing policy or regulations.

(5) Not later than 90 days after the date on which any changes are proposed under paragraph (4), finalize any policy changes resulting from the evaluation under subsection (b).

(6) Not later than 1 year after proposing any changes to existing regulations under paragraph (4), finalize any changes to existing regulations resulting from the evaluation under subsection (b).

(f) Effect of changes.—Any changes to policy or regulations finalized by the Commission under this section shall seek to reduce the time required, as of the date of enactment of this Act, for a qualified project upgrade described in subsection (c) to receive a license amendment under part I of the Federal Power Act (16 U.S.C. 792 et seq.).

SEC. 3003. Regulations to establish a 2-year process for certain nonpowered dams and closed-loop pumped storage projects.

Section 6 of the Hydropower Regulatory Efficiency Act of 2013 (16 U.S.C. 797 note; Public Law 113–23) is amended by adding at the end the following:

“(e) Regulations to establish 2-year process.—Not later than 180 days after the date of enactment of the Energy and Natural Resources Act of 2017, the Commission shall initiate proceedings to promulgate revised regulations relating to the integrated licensing process, alternative licensing process, or traditional licensing process of the Commission, as the Commission determines to be appropriate, to establish, based on the report issued under subsection (d)(2), a 2-year process for original licenses at nonpowered dams in existence on the date of enactment of the Energy and Natural Resources Act of 2017 or closed-loop pumped storage projects (as defined by the Commission after the consideration of public comments).”.

SEC. 3004. Regionwide pilot program.

(a) In general.—The Commission (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)) shall establish a voluntary pilot program covering at least 1 region in which the Commission, in consultation with the heads of other applicable Federal agencies, shall direct regionwide studies to inform subsequent project-level studies within each region.

(b) Designation.—Not later than 2 years after the date of enactment of this Act, if the conditions under subsection (c) are met, the Commission, in consultation with the heads of other applicable Federal agencies, shall designate 1 or more regions to be studied under this section.

(c) Voluntary basis.—The Commission may only designate regions under subsection (b) in which every licensee, on a voluntary basis and in writing, agrees—

(1) to be included in the pilot program; and

(2) to any cost-sharing arrangement with other licensees, to the extent the region contains projects owned or operated by more than 1 licensee, and applicable Federal and State agencies with respect to conducting regionwide studies.

(d) Single licensee.—The Commission may designate regions under subsection (b) that contain only projects owned or operated by a single licensee.

(e) Scale.—The regions designated under subsection (b) shall—

(1) be at an adequately large scale to cover at least 3 existing projects that—

(A) are licensed under part I of the Federal Power Act (16 U.S.C. 792 et seq.); and

(B) the licenses of which shall expire not later than 15 years after the date of enactment of this Act; and

(2) be likely to yield regionwide studies and information that will significantly reduce the need for and scope of subsequent project-level studies and information.

(f) Regionwide study scope.—The Commission shall ensure that regionwide studies conducted under this section concentrate on information specifically relevant to license applications under part I of the Federal Power Act (16 U.S.C. 792 et seq.).

(g) Project license terms.—The Commission may extend the term of any existing license within a region designated under subsection (b) by up to 8 years to provide sufficient time for relevant regionwide studies to inform subsequent project-level studies.

SEC. 3005. Pumped storage hydropower.

(a) Report on pumped storage hydropower barriers.—

(1) IN GENERAL.—Not later than 270 days after the date of enactment of this Act, the Commission 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—

(A) (i) describing any barriers to the development and proper compensation of pumped storage hydropower projects and other energy storage facilities caused by—

(I) rules of Transmission Organizations (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)); or

(II) regulations or policies—

(aa) of the Commission; or

(bb) under the Federal Power Act (16 U.S.C. 791a et seq.); and

(ii) containing recommendations of the Commission for reducing those barriers;

(B) identifying and determining any market, procurement, or cost recovery mechanisms that would—

(i) encourage development of pumped storage hydropower projects; and

(ii) properly compensate pumped storage hydropower projects for the full range of services provided to the electric grid, including—

(I) balancing electricity supply and demand;

(II) ensuring grid reliability; and

(III) integrating intermittent power sources into the grid in a cost-effective manner; and

(C) identifying ownership and development models that could reduce barriers to the development of pumped storage hydropower projects, including—

(i) opportunities for risk-sharing mechanisms and partnerships, including co-ownership models; and

(ii) opportunities to foster lease sale and lease-back arrangements with publicly owned electric utilities.

(2) CURRENT PROCEEDING.—The Commission shall base the report under paragraph (1) on the findings of the Commission in—

(A) Docket No. AD16-20-000; and

(B) any other relevant proceedings.

(b) Traditional licensing process timeline.—It is the sense of Congress that a license order of the Commission under part I of the Federal Power Act (16 U.S.C. 792 et seq.) for a pumped storage project should be issued by the date that is 1 year after the date on which the Commission considers the application for the project to be complete if—

(1) the license applicant has filed a license application in accordance with subpart D of part 4 of title 18, Code of Federal Regulations (or successor regulations); and

(2) after carrying out an environmental assessment under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the project, the Commission concludes that no environmental impact statement under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) is necessary for the project.

SEC. 3006. Annual reports.

Part I of the Federal Power Act (16 U.S.C. 792 et seq.) (as amended by section 3001(c)) is amended by adding at the end the following:

“SEC. 37. Annual reports.

“(a) Commission annual report.—

“(1) IN GENERAL.—The Commission 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 an annual report that—

“(A) describes and quantifies, for each licensed, exempted, or proposed project under this part or section 405(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705(d)) (referred to in this subsection as the ‘covered project’), the quantity of energy and capacity authorized for new development and reauthorized for continued operation during the reporting year, including an assessment of the economic, climactic, air quality, and other environmental benefits achieved by the new and reauthorized energy and capacity;

“(B) describes and quantifies the loss of energy, capacity, or ancillary services as a result of any licensing action under this part or other requirement under Federal law during the reporting year;

“(C) identifies any application to license, relicense, or expand a covered project pending as of the date of the annual report, including a quantification of the new energy and capacity with the potential to be gained or lost by action relating to the covered project; and

“(D) lists all proposed covered projects that, as of the date of the annual report, are subject to a preliminary permit issued under section 4(f), including a description of the quantity of new energy and capacity that would be achieved through the development of each proposed covered project.

“(2) AVAILABILITY.—The Commission shall establish and maintain a publicly available website or comparable resource that tracks all information required for the annual report under paragraph (1).

“(b) Resource agency annual report.—

“(1) IN GENERAL.—Any Federal resource agency that is participating in any Commission proceeding under this part or that has responsibilities for any Federal authorization shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that—

“(A) describes each term, condition, or other requirement prepared by the resource agency during the reporting year with respect to a Commission proceeding under this part, including—

“(i) an assessment of whether implementation of the term, condition, or other requirement would result in the loss of energy, capacity, or ancillary services at the project, including a quantification of the losses;

“(ii) an analysis of economic, air quality, climactic, and other environmental effects associated with implementation of the term, condition, or other requirement;

“(iii) a demonstration, based on evidence in the record of the Commission, that the resource agency prepared the term, condition, or other requirement in a manner that meets the policy established by this part while discharging the responsibilities of the resource agency under this part or any other applicable requirement under Federal law; and

“(iv) a statement of whether the head of the applicable Federal agency has rendered final approval of the term, condition, or other requirement, or whether the term, condition, or other requirement remains a preliminary recommendation of staff of the resource agency; and

“(B) identifies all pending, scheduled, and anticipated proceedings under this part that, as of the date of the annual report, the resource agency expects to participate in, or has any approval or participatory responsibilities for under Federal law, including—

“(i) an accounting of whether the resource agency met all deadlines or other milestones established by the resource agency or the Commission during the reporting year; and

“(ii) the specific plans of the resource agency for allocating sufficient resources for each project during the upcoming year.

“(2) AVAILABILITY.—Any resource agency preparing an annual report to Congress under paragraph (1) shall establish and maintain a publicly available website or comparable resource that tracks all information required for the annual report.”.

SEC. 3007. Synchronization of hydroelectric licensing processes of the Bureau of Reclamation and the Federal Energy Regulatory Commission.

(a) In general.—Not later than 180 days after the date of enactment of this Act, the Bureau of Reclamation and the Commission shall enter into a memorandum of understanding to synchronize, to the maximum extent practicable, the lease of power and privilege process and regulations of the Bureau and the licensing requirements of the Commission, relating to hydroelectric power for any project (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)) that is subject, in whole or in part, to the jurisdiction of the Bureau of Reclamation and the Commission.

(b) Memorandum of understanding.—In entering into the memorandum of understanding required under subsection (a), the Bureau of Reclamation and the Commission shall, to the maximum extent practicable—

(1) establish a process to facilitate timely licensing and permitting of hydropower projects, including pumped storage hydroelectric projects;

(2) include a public workshop and comment period;

(3) consider a phased approach to synchronize processes for authorizing non-Federal pumped storage hydropower projects with an environmental review phase followed by an engineering and technical analysis phase; and

(4) consider a phased approach that allows incremental funding of a project by a developer.

SEC. 3008. Federal Energy Regulatory Commission projects.

(a) Gibson Dam.—

(1) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Federal Energy Regulatory Commission project numbered 12478–003, the Federal Energy Regulatory Commission (referred to in this section as the “Commission”) may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of, and the procedures of the Commission under, that section, extend the time period during which the licensee is required to commence construction of the project for not more than 3 consecutive 2-year periods from the date of the expiration of the extension originally issued by the Commission.

(2) REINSTATEMENT OF EXPIRED LICENSE.—

(A) IN GENERAL.—If the period required for the commencement of construction of the project described in paragraph (1) has expired prior to the date of enactment of this Act, the Commission may reinstate the license effective as of that date of expiration.

(B) EXTENSION.—If the Commission reinstates the license under subparagraph (A), the first extension authorized under paragraph (1) shall take effect on the date of that expiration.

(b) Cannonsville Dam.—

(1) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 13287, the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of that section and the procedures of the Commission under that section, extend the time period during which the licensee is required to commence construction of the project for up to 4 consecutive 2-year periods after the required date of the commencement of construction described in Article 301 of the license.

(2) REINSTATEMENT OF EXPIRED LICENSE.—

(A) IN GENERAL.—If the period required for the commencement of construction of the project described in paragraph (1) has expired prior to the date of enactment of this Act, the Commission may reinstate the license effective as of that date of expiration.

(B) EXTENSION.—If the Commission reinstates the license under subparagraph (A), the first extension authorized under paragraph (1) shall take effect on the date of that expiration.

(c) W. Kerr Scott Dam.—

(1) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 12642, the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of that section and the procedures of the Commission under that section, extend the time period during which the licensee is required to commence the construction of the project for up to 3 consecutive 2-year periods from the date of the expiration of the extension originally issued by the Commission.

(2) REINSTATEMENT OF EXPIRED LICENSE.—If the period required for commencement of construction of the project described in paragraph (1) has expired prior to the date of enactment of this Act—

(A) the Commission may reinstate the license effective as of the date of the expiration of the license; and

(B) the first extension authorized under paragraph (1) shall take effect on that expiration date.

(d) Gathright Dam.—

(1) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 12737, the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of that section and the procedures of the Commission under that section, extend the time period during which the licensee is required to commence the construction of the project for up to 3 consecutive 2-year periods from the date of the expiration of the extension originally issued by the Commission.

(2) REINSTATEMENT OF EXPIRED LICENSE.—If the period required for commencement of construction of the project described in paragraph (1) has expired prior to the date of enactment of this Act—

(A) the Commission may reinstate the license for the project effective as of the date of the expiration of the license; and

(B) the first extension authorized under paragraph (1) shall take effect on that expiration.

(e) Flannagan Dam.—

(1) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 12740, the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of that section and the procedures of the Commission under that section, extend the time period during which the licensee is required to commence the construction of the project for up to 3 consecutive 2-year periods from the date of the expiration of the extension originally issued by the Commission.

(2) REINSTATEMENT OF EXPIRED LICENSE.—If the period required for commencement of construction of a project described in paragraph (1) has expired prior to the date of enactment of this Act—

(A) the Commission may reinstate the license for the project effective as of the date of the expiration of the license; and

(B) the first extension authorized under paragraph (1) shall take effect on that expiration.

(f) Jennings Randolph Dam.—

(1) EXTENSION OF TIME.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 12715 (referred to in this subsection as the “project”), the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of, and the procedures of the Commission under, that section, extend the time period during which the licensee is required to commence the construction of the project for not more than 3 consecutive 2-year periods that begin on the date of the expiration of the extension originally issued by the Commission.

(2) REINSTATEMENT OF EXPIRED LICENSE.—

(A) IN GENERAL.—If the period required for the commencement of construction of the project has expired before the date of enactment of this Act, the Commission may reinstate the license effective as of the date of the expiration of the license.

(B) EXTENSION.—If the Commission reinstates the license under subparagraph (A), the first extension authorized under paragraph (1) shall take effect on the date of that expiration.

(g) Mahoney Lake Hydroelectric Project.—

(1) DEFINITIONS.—In this subsection:

(A) LICENSE.—The term “license” means the license for the Commission project numbered 11393.

(B) LICENSEE.—The term “licensee” means the holder of the license.

(2) STAY OF LICENSE.—On the request of the licensee, the Commission shall issue an order continuing the stay of the license.

(3) LIFTING OF STAY.—On the request of the licensee, but not later than 10 years after the date of enactment of this Act, the Commission shall—

(A) issue an order lifting the stay of the license under paragraph (2); and

(B) make the effective date of the license the date on which the stay is lifted under subparagraph (A).

(4) EXTENSION OF LICENSE.—

(A) IN GENERAL.—Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Commission project numbered 11393, the Commission may, at the request of the licensee, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of, and the procedures of the Commission under, that section, extend the time period during which the licensee is required to commence the construction of the project for not more than 3 consecutive 2-year periods from the date of the expiration of the extension originally issued by the Commission.

(B) REINSTATEMENT OF EXPIRED LICENSE.—

(i) IN GENERAL.—If the period required for the commencement of construction of the project described in subparagraph (A) has expired prior to the date of enactment of this Act, the Commission may reinstate the license effective as of the date of the expiration of the license.

(ii) EXTENSION.—If the Commission reinstates the license under clause (i), the first extension authorized under subparagraph (A) shall take effect on the date of that expiration.

(5) EFFECT.—Nothing in this subsection prioritizes, or creates any advantage or disadvantage to, Commission project numbered 11393 under Federal law, including the Federal Power Act (16 U.S.C. 791a et seq.) or the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.), as compared to—

(A) any electric generating facility in existence on the date of enactment of this Act; or

(B) any electric generating facility that may be examined, proposed, or developed during the period of any stay or extension of the license under this subsection.

(h) Terror Lake Hydroelectric Project Upper Hidden Basin Diversion.—

(1) DEFINITIONS.—In this subsection:

(A) TERROR LAKE HYDROELECTRIC PROJECT.—The term “Terror Lake Hydroelectric Project” means the project identified in section 1325 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3212), and which is the Commission project numbered 2743.

(B) UPPER HIDDEN BASIN DIVERSION EXPANSION.—The term “Upper Hidden Basin Diversion Expansion” means the expansion of the Terror Lake Hydroelectric Project as generally described in exhibit E to the Upper Hidden Basin Grant Application dated July 2, 2014, and submitted to the Alaska Energy Authority Renewable Energy Fund Round VIII by Kodiak Electric Association, Inc.

(2) AUTHORIZATION.—The licensee for the Terror Lake Hydroelectric Project may occupy not more than 20 acres of Federal land to construct, operate, and maintain the Upper Hidden Basin Diversion Expansion without further authorization of the Secretary of the Interior or under the Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 et seq.).

(3) SAVINGS CLAUSE.—The Upper Hidden Basin Diversion Expansion shall be subject to appropriate terms and conditions included in an amendment to a license issued by the Commission pursuant to the Federal Power Act (16 U.S.C. 791a et seq.), including section 4(e) of that Act (16 U.S.C. 797(e)), following an environmental review by the Commission under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

SEC. 3009. Study of surrender or transfer of licenses for nonpowered sites.

Not later than 180 days after the date of enactment of this Act, the Commission shall prepare and submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that—

(1) identifies the hydropower projects licensed by the Commission that are located at a nonpowered site that serves as storage to support downstream power generation;

(2) analyzes the value of electric power generation associated with the projects identified under paragraph (1) relative to the value of nonpower generation functions associated with the same projects, including recreational and environmental functions;

(3) describes the range of options that exist under law in effect on the date of enactment of this Act with respect to the surrender or transfer of a license, including a representative range of actual measures required by the Commission of project owners that have surrendered or transferred a license;

(4) identifies any barriers to the surrender or transfer of the licenses for the identified projects; and

(5) identifies costs incurred by licensees of the identified projects resulting from requirements imposed by a Commission license, including applicable costs broken down by categories related to—

(A) the environment, including fish and wildlife measures;

(B) human safety;

(C) electric reliability;

(D) recreation;

(E) cultural resources;

(F) flood control;

(G) navigation;

(H) irrigation; and

(I) any other relevant category as determined by the Commission.

SEC. 3010. Hydroelectric production incentives and efficiency improvements.

(a) Hydroelectric production incentives.—Section 242 of the Energy Policy Act of 2005 (42 U.S.C. 15881) is amended—

(1) in subsection (c), by striking “10” and inserting “20”;

(2) in subsection (f), by striking “20” and inserting “30”; and

(3) in subsection (g), by striking “each of the fiscal years 2006 through 2015” and inserting “each of fiscal years 2018 through 2027”.

(b) Hydroelectric efficiency improvement.—Section 243(c) of the Energy Policy Act of 2005 (42 U.S.C. 15882(c)) is amended by striking “each of the fiscal years 2006 through 2015” and inserting “each of fiscal years 2018 through 2027”.

PART IIGeothermal

SEC. 3011. Geothermal energy.

(a) Sense of Congress regarding 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 shall seek to approve a significant increase in new geothermal energy capacity on public land across a geographically diverse set of States using the full range of available technologies; and

(2) the Secretary, acting through the Director of the United States Geological Survey, should identify sites capable of producing a total of 50,000 megawatts of geothermal power, using the full range of available technologies, through a program conducted in collaboration with industry, including cost-shared exploration drilling.

(b) 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.”.

(c) 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 subsection (b)) 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; or

“(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 the Energy and Natural Resources Act of 2017, the Secretary shall issue regulations to carry out this paragraph.”.

(d) 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 of the Interior and the Secretary shall submit to Congress a report describing the progress made towards achieving the goals described in subsection (a).

(e) Reauthorization of the Advanced Geothermal Energy Research and Development Act of 2007.—Section 623 of the Advanced Geothermal Energy Research and Development Act of 2007 (42 U.S.C. 17202) is amended by striking “2012” each place it appears and inserting “2022”.

(f) Authorization of appropriations.—There is authorized to be appropriated to carry out subsections (a) through (d) and the amendments made by those subsections $5,000,000 for each of fiscal years 2018 through 2022.

SEC. 3012. Geothermal exploration test projects.

The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is amended by adding at the end the following:

“SEC. 30. Geothermal exploration test projects.

“(a) Definitions.—In this section:

“(1) COVERED LAND.—The term ‘covered land’ means land that is—

“(A) subject to geothermal leasing in accordance with section 3; and

“(B) not excluded from the development of geothermal energy under—

“(i) a final land use plan established under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.);

“(ii) a final land and resource management plan established under the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.); or

“(iii) any other applicable law.

“(2) SECRETARY CONCERNED.—The term ‘Secretary concerned’ means—

“(A) the Secretary of Agriculture (acting through the Chief of the Forest Service), with respect to National Forest System land; and

“(B) the Secretary, with respect to land managed by the Bureau of Land Management (including land held for the benefit of an Indian tribe).

“(b) NEPA review of geothermal exploration test projects.—

“(1) IN GENERAL.—An eligible activity described in paragraph (2) carried out on covered land shall be considered an action categorically excluded from the requirements for an environmental assessment or an environmental impact statement under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or section 1508.4 of title 40, Code of Federal Regulations (or a successor regulation), if—

“(A) the action is for the purpose of geothermal resource exploration operations; and

“(B) the action is conducted pursuant to this Act.

“(2) ELIGIBLE ACTIVITY.—An eligible activity referred to in paragraph (1) is—

“(A) a geophysical exploration activity that does not require drilling, including a seismic survey;

“(B) the drilling of a well to test or explore for geothermal resources on land leased by the Secretary concerned for the development and production of geothermal resources that—

“(i) is carried out by the holder of the lease;

“(ii) causes—

“(I) fewer than 5 acres of soil or vegetation disruption at the location of each geothermal exploration well; and

“(II) not more than an additional 5 acres of soil or vegetation disruption during access or egress to the project site;

“(iii) is completed in fewer than 90 days, including the removal of any surface infrastructure from the project site; and

“(iv) requires the restoration of the project site not later than 3 years after the date of completion of the project to approximately the condition that existed at the time the project began, unless—

“(I) the project site is subsequently used as part of energy development on the lease; or

“(II) the project—

“(aa) yields geothermal resources; and

“(bb) the use of the geothermal resources will be carried out under another geothermal generation project in existence at the time of the discovery of the geothermal resources; or

“(C) the drilling of a well to test or explore for geothermal resources on land leased by the Secretary concerned for the development and production of geothermal resources that—

“(i) causes an individual surface disturbance of fewer than 5 acres if—

“(I) the total surface disturbance on the leased land is not more than 150 acres; and

“(II) a site-specific analysis has been prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

“(ii) involves the drilling of a geothermal well at a location or well pad site at which drilling has occurred within 5 years before the date of spudding the well; or

“(iii) involves the drilling of a geothermal well in a developed field for which—

“(I) an approved land use plan or any environmental document prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) analyzed the drilling as a reasonably foreseeable activity; and

“(II) the land use plan or environmental document was approved within 10 years before the date of spudding the well.

“(3) LIMITATION BASED ON EXTRAORDINARY CIRCUMSTANCES.—The categorical exclusion established under paragraph (1) shall be subject to extraordinary circumstances in accordance with the Departmental Manual, 516 DM 2.3A(3) and 516 DM 2, Appendix 2 (or successor provisions).

“(c) Notice of intent; review and determination.—

“(1) REQUIREMENT TO PROVIDE NOTICE.—Not later than 30 days before the date on which drilling begins, a leaseholder intending to carry out an eligible activity shall provide notice to the Secretary concerned.

“(2) REVIEW OF PROJECT.—Not later than 10 days after receipt of a notice of intent provided under paragraph (1), the Secretary concerned shall—

“(A) review the project described in the notice and determine whether the project is an eligible activity; and

“(B) (i) if the project is an eligible activity, notify the leaseholder that under subsection (b), the project is considered a categorical exclusion under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and section 1508.4 of title 40, Code of Federal Regulations (or a successor regulation); or

“(ii) if the project is not an eligible activity—

“(I) notify the leaseholder that section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) applies to the project;

“(II) include in that notification clear and detailed findings on any deficiencies in the project that prevent the application of subsection (b) to the project; and

“(III) provide an opportunity to the leaseholder to remedy the deficiencies described in the notification before the date on which the leaseholder plans to begin the project under paragraph (1).”.

PART IIIMarine Hydrokinetic

SEC. 3021. Definition of marine and hydrokinetic renewable energy.

Section 632 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211) is amended in the matter preceding paragraph (1) by striking “electrical”.

SEC. 3022. Marine and hydrokinetic renewable energy research and development.

Section 633 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17212) is amended to read as follows:

“SEC. 633. Marine and hydrokinetic renewable energy research and development.

“The Secretary, in consultation with the Secretary of the Interior, the Secretary of Commerce, and the Federal Energy Regulatory Commission, shall carry out a program of research, development, and demonstration to accelerate the introduction of marine and hydrokinetic renewable energy production into the United States energy supply, giving priority to technologies most likely to lead to commercial utilization, while fostering accelerated research, development, and demonstration of technology, including programs—

“(1) to assist technology development to improve the components, processes, and systems used for power generation from marine and hydrokinetic renewable energy resources;

“(2) to establish critical testing infrastructure necessary—

“(A) to cost effectively and efficiently test and prove marine and hydrokinetic renewable energy devices; and

“(B) to accelerate the technological readiness and commercialization of those devices;

“(3) to support efforts to increase the efficiency of energy conversion, lower the cost, increase the use, improve the reliability, and demonstrate the applicability of marine and hydrokinetic renewable energy technologies by participating in demonstration projects;

“(4) to investigate variability issues and the efficient and reliable integration of marine and hydrokinetic renewable energy with the utility grid;

“(5) to identify and study critical short- and long-term needs to create a sustainable marine and hydrokinetic renewable energy supply chain based in the United States;

“(6) to increase the reliability and survivability of marine and hydrokinetic renewable energy technologies;

“(7) to verify the performance, reliability, maintainability, and cost of new marine and hydrokinetic renewable energy device designs and system components in an operating environment, and consider the protection of critical infrastructure, such as adequate separation between marine and hydrokinetic devices and projects and submarine telecommunications cables, including consideration of established industry standards;

“(8) (A) to coordinate the programs carried out under this section with, and avoid duplication of activities across, programs of the Department and other applicable Federal agencies, including National Laboratories; and

“(B) to coordinate public-private collaboration in carrying out the programs under this section;

“(9) to identify opportunities for joint research and development programs and the development of economies of scale between—

“(A) marine and hydrokinetic renewable technologies; and

“(B) other renewable energy and fossil energy programs, offshore oil and gas production activities, and activities of the Department of Defense;

“(10) to identify, in conjunction with the Secretary of Commerce, acting through the Under Secretary of Commerce for Oceans and Atmosphere, and other Federal agencies as appropriate, the potential environmental impacts, including potential impacts on fisheries and other marine resources, of marine and hydrokinetic renewable energy technologies, measures to prevent adverse impacts, and technologies and other means available for monitoring and determining environmental impacts;

“(11) to identify, in conjunction with the Secretary of the Department in which the United States Coast Guard is operating, acting through the Commandant of the United States Coast Guard, the potential navigational impacts of marine and hydrokinetic renewable energy technologies and measures to prevent adverse impacts on navigation; and

“(12) to support in-water technology development with international partners using existing cooperative procedures (including memoranda of understanding)—

“(A) to allow cooperative funding and other support of value to be exchanged and leveraged; and

“(B) to encourage international research centers and international companies to participate in the development of water technology in the United States and to encourage United States research centers and companies to participate in water technology projects abroad.”.

SEC. 3023. National Marine Renewable Energy Research, Development, and Demonstration Centers.

Section 634 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17213) is amended by striking subsection (b) and inserting the following:

“(b) Purposes.—The Centers (including each Center that has been established as of the date of enactment of the Energy and Natural Resources Act of 2017) shall coordinate with the Department and the National Laboratories—

“(1) to advance research, development, and demonstration of marine and hydrokinetic renewable energy technologies;

“(2) to support in-water testing and demonstration of marine and hydrokinetic renewable energy technologies, including facilities capable of testing—

“(A) marine and hydrokinetic renewable energy systems of various technology readiness levels and scales;

“(B) a variety of technologies in multiple test berths at a single location; and

“(C) arrays of technology devices; and

“(3) to serve as information clearinghouses for the marine and hydrokinetic renewable energy industry by collecting and disseminating information on best practices in all areas relating to developing and managing marine and hydrokinetic renewable energy resources and energy systems.”.

SEC. 3024. Authorization of appropriations.

Section 636 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17215) is amended by striking “$50,000,000 for each of the fiscal years 2008 through 2012” and inserting “$55,000,000 for each of fiscal years 2018 and 2019 and $60,000,000 for each of fiscal years 2020 through 2022”.

PART IVThermal Energy

SEC. 3031. Modifying the definition of renewable energy to include thermal energy.

(a) In general.—Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) (as amended by section 3001(a)(2)) is amended—

(1) in subsection (a), by inserting “a number equivalent to” before “the total amount of electric energy”;

(2) in subsection (b)—

(A) by redesignating paragraph (2) as paragraph (3);

(B) by inserting after paragraph (1) the following:

“(2) QUALIFIED WASTE HEAT RESOURCE.—The term ‘qualified waste heat resource’ means—

“(A) exhaust heat or flared gas from any industrial process;

“(B) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented;

“(C) a pressure drop in any gas for an industrial or commercial process; or

“(D) such other forms of waste heat as the Secretary determines appropriate.”; and

(C) in paragraph (3) (as redesignated by subparagraph (A))—

(i) by striking “produced from” and inserting “produced or, if resulting from a thermal energy project placed in service after December 31, 2014, thermal energy generated from, or avoided by,”; and

(ii) by inserting “qualified waste heat resource,” after “municipal solid waste,”; and

(3) in subsection (c)—

(A) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately;

(B) in the matter preceding subparagraph (A) (as so redesignated), by striking “For purposes” and inserting the following:

“(1) IN GENERAL.—For purposes”; and

(C) by adding at the end the following:

“(2) SEPARATE CALCULATION.—

“(A) IN GENERAL.—For purposes of determining compliance with the requirements of this section, any energy consumption that is avoided through the use of renewable energy shall be considered to be renewable energy produced.

“(B) DENIAL OF DOUBLE BENEFIT.—Avoided energy consumption that is considered to be renewable energy produced under subparagraph (A) shall not also be counted for purposes of achieving compliance with another Federal energy efficiency goal.”.

(b) Conforming amendment.—Section 2410q(a) of title 10, United States Code, is amended by striking “section 203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2))” and inserting “section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))”.

subtitle BOil and Gas

SEC. 3101. Methane hydrate research and development.

Section 7 of the Methane Hydrate Research and Development Act of 2000 (30 U.S.C. 2006) is amended to read as follows:

“SEC. 7. Authorization of appropriations.

“There is authorized to be appropriated to carry out this Act $35,000,000 for each of fiscal years 2018 through 2022.”.

SEC. 3102. Liquefied natural gas study.

(a) Study.—

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the National Association of Regulatory Utility Commissioners and the National Association of State Energy Officials, shall conduct a study of the State, regional, and national implications of exporting liquefied natural gas with respect to consumers and the economy.

(2) CONTENTS.—The study conducted under paragraph (1) shall include an analysis of—

(A) the economic impact that exporting liquefied natural gas will have in regions that currently import liquefied natural gas;

(B) job creation in the manufacturing sectors; and

(C) such other issues as the Secretary considers appropriate.

(b) Report to Congress.—Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report on the results of the study conducted under subsection (a).

SEC. 3103. FERC process coordination.

(a) In general.—Section 15 of the Natural Gas Act (15 U.S.C. 717n) is amended—

(1) in subsection (a), by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;

(2) by striking the section designation and heading and all that follows through “ ‘Federal authorization’—” and inserting the following:

“SEC. 15. Process coordination; hearings; rules of procedure.

“(a) Definitions.—In this section:

“(1) ENVIRONMENTAL REVIEW.—The term ‘environmental review’ means the agency procedures and processes for applying a categorical exclusion or for preparing an environmental assessment, an environmental impact statement, or other document required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

“(2) FEDERAL AUTHORIZATION.—The term ‘Federal authorization’—”;

(3) in subsection (b), by striking paragraph (2) and inserting the following:

“(2) OTHER AGENCIES.—

“(A) IN GENERAL.—Each Federal agency and State agency considering an aspect of an application for Federal authorization shall cooperate with the Commission and comply with the deadlines established by the Commission.

“(B) IDENTIFICATION.—The Commission shall identify, as early as practicable after it is notified by a prospective applicant of a potential project requiring Commission authorization, any Federal or State agency, local government, or Indian tribe that may consider an aspect of an application for that Federal authorization.

“(C) NOTIFICATION.—

“(i) IN GENERAL.—The Commission shall notify any agency identified under subparagraph (B) of the opportunity to cooperate or participate in the review process.

“(ii) DEADLINE.—A notification issued under clause (i) shall establish a deadline by which a response to the notification shall be submitted, which may be extended by the Commission for good cause.”;

(4) in subsection (c)—

(A) in paragraph (1)—

(i) by striking “and” at the end of subparagraph (A);

(ii) by redesignating subparagraph (B) as subparagraph (C); and

(iii) by inserting after subparagraph (A) the following:

“(B) set schedules for all such Federal authorizations; and”;

(B) by striking paragraph (2); and

(C) by adding at the end the following:

“(2) DEADLINE FOR FEDERAL AUTHORIZATIONS.—Unless a schedule is otherwise established by Federal law, a final decision on a Federal authorization shall be due not later than 90 days after the agency has determined that an application is categorically excluded under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or the notice of availability of the final environmental impact statement or finding of no significant impact is made available to the affected public.

“(3) DEFERENCE TO COMMISSION.—In making a decision with respect to a Federal authorization, each agency shall give deference, to the maximum extent authorized by law, to the scope of environmental review that the Commission determines to be appropriate.

“(4) CONCURRENT REVIEWS.—Pursuant to the schedule established under paragraph (1), each agency considering an aspect of an application for Federal authorization shall—

“(A) to the maximum extent authorized by law, carry out the obligations of that agency under applicable law concurrently and in conjunction with the environmental review, unless doing so would impair the ability of the agency to conduct needed analysis or otherwise carry out those obligations;

“(B) formulate and implement administrative, policy, and procedural mechanisms to enable the agency to complete the required Federal authorizations in accordance with the schedule described in paragraph (1); and

“(C) transmit to the Commission a statement—

“(i) acknowledging receipt of the schedule described in paragraph (1); and

“(ii) describing the plan formulated under subparagraph (B).

“(5) ISSUE IDENTIFICATION.—

“(A) Federal and State agencies that may consider an aspect of an application for Federal authorization shall identify, as early as possible, any issues of concern that may delay or prevent an agency from working with the Commission to resolve such issues and granting or denying such authorization.

“(B) The Commission may forward any issue of concern identified under subparagraph (A) to the heads of the relevant agencies (including, in the case of a failure by the State agency, the Federal agency overseeing the delegated authority) for resolution.

“(6) FAILURE TO MEET SCHEDULE.—If a Federal or State agency does not complete a proceeding required for a Federal authorization in accordance with the schedule established by the Commission under paragraph (1)—

“(A) the applicant may pursue remedies under section 19(d); and

“(B) the head of the relevant Federal agency (including, in the case of a failure by a State agency, the Federal agency overseeing the delegated authority) shall notify Congress and the Commission of such failure and set forth a recommended implementation plan to ensure completion of the proceeding.”;

(5) by redesignating subsections (d) through (f) as subsections (f) through (h), respectively; and

(6) by inserting after subsection (c) the following:

“(d) Geomatic data.—

“(1) IN GENERAL.—If a Federal or State department or agency considering an aspect of an application for Federal authorization requires the applicant to submit environmental data, the department or agency shall consider any such data submitted by the applicant which was gathered by geomatic techniques, including tools and techniques used in land surveying, remote sensing, cartography, geographic information systems, global navigation satellite systems, photogrammetry, geophysics, geography, or other remote means. The applicable agency may grant conditional approval for Federal authorization, conditioned on the verification of such data by subsequent onsite inspection.

“(2) APPLICABLE LAW.—Any geomatic data submitted as part of a Federal authorization shall have been gathered in compliance with all applicable laws (including regulations).

“(e) Accountability; transparency; efficiency.—

“(1) IN GENERAL.—For applications requiring multiple Federal authorizations, the Commission, in consultation with any agency considering an aspect of the application, shall track and make available to the public on the website of the Commission information relating to the actions required to complete permitting, reviews, and other requirements.

“(2) INCLUSIONS.—Information tracked under paragraph (1) shall include the following:

“(A) The schedule described in subsection (c).

“(B) A list of all the actions required by each applicable agency to complete permitting, reviews, and other requirements necessary to obtain a final decision on the Federal authorization.

“(C) The expected completion date for each action listed under subparagraph (B).

“(D) A point of contact at the agency accountable for each action listed under subparagraph (B).

“(E) In the event that an action is still pending as of the expected date of completion, a brief explanation of the reason for the delay.”.

(b) Effect.—Nothing in this section or the amendments made by this section prohibits the participation of an applicant in any other expedited permitting program.

SEC. 3104. Department of the Interior pilot program.

(a) Establishment.—The Secretary of the Interior, acting through the Director of the Bureau of Land Management (referred to in this section as the “Director”), shall establish a pilot program in 1 State with at least 2,000 oil and gas drilling spacing units (as defined under State law), in which—

(1) 25 percent or less of the minerals are owned or held in trust by the Federal Government; and

(2) there is no surface land owned or held in trust by the Federal Government.

(b) Activities.—In carrying out the pilot program, the Director shall identify and implement ways to streamline the review and approval of Applications for Permits to Drill for oil and gas drilling spacing units of the State in order to achieve a processing time for those oil and gas drilling spacing units similar to that of spacing units that require an Application for Permit to Drill and are not part of the pilot program in the same State.

(c) Funding.—Beginning in fiscal year 2018, and for a period of 3 years thereafter, to carry out the pilot program efficiently, the Director may fund up to 10 full-time equivalents at appropriate field offices.

(d) Report.—Not later than 4 years after the date of enactment of this Act, the Director shall submit to Congress a report on the results of the pilot program.

(e) Waiver.—The Secretary of the Interior may waive the requirement for an Application for Permit to Drill if the Director determines that the mineral interest of the United States in the spacing units in land covered by this section is adequately protected, if otherwise in accordance with applicable laws, regulations, and lease terms.

SEC. 3105. GAO review and report.

(a) In general.—Not later than 1 year after the date of enactment of this Act, and annually thereafter for 2 years, the Comptroller General of the United States shall conduct a review of—

(1) energy production in the United States; and

(2) the effects, if any, of crude oil exports from the United States on consumers, independent refiners, and shipbuilding and ship repair yards.

(b) Contents of report.—Not later than 1 year after commencing each review under subsection (a), the Comptroller General of the United States shall submit to the Committees on Energy and Natural Resources, Banking, Housing, and Urban Affairs, Commerce, Science, and Transportation, and Foreign Relations of the Senate and the Committees on Natural Resources, Energy and Commerce, Financial Services, and Foreign Affairs of the House of Representatives a report that includes—

(1) a statement of the principal findings of the review; and

(2) recommendations for Congress and the President to address any job loss in the shipbuilding and ship repair industry or adverse impacts on consumers and refiners that the Comptroller General of the United States attributes to unencumbered crude oil exports in the United States.

SEC. 3106. Ethane storage study.

(a) In general.—The Secretary and the Secretary of Commerce, in consultation with other relevant Federal departments and agencies and stakeholders, shall conduct a study of the feasibility of establishing an ethane storage and distribution hub in the Marcellus, Utica, and Rogersville shale plays in the United States.

(b) Contents.—The study conducted under subsection (a) shall include—

(1) an examination of, with respect to the proposed ethane storage and distribution hub—

(A) potential locations;

(B) economic feasibility;

(C) economic benefits;

(D) geological storage capacity capabilities;

(E) above-ground storage capabilities;

(F) infrastructure needs; and

(G) other markets and trading hubs, particularly hubs relating to ethane; and

(2) the identification of potential additional benefits of the proposed hub to energy security.

(c) Publication of results.—Not later than 2 years after the date of enactment of this Act, the Secretary and the Secretary of Commerce shall—

(1) submit to the Committee on Energy and Commerce of the House of Representatives and the Committees on Energy and Natural Resources and Commerce, Science, and Transportation of the Senate a report describing the results of the study under subsection (a); and

(2) publish those results on the Internet websites of the Departments of Energy and Commerce, respectively.

SEC. 3107. Report on incorporating Internet-based lease sales.

Not later than 180 days after the date of enactment of this Act, the Secretary of the Interior shall submit to Congress a report containing recommendations for the incorporation of Internet-based lease sales at the Bureau of Land Management in accordance with section 17(b)(1)(C) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(C)) in the event of an emergency or other disruption causing a disruption to a sale.

subtitle CHelium

SEC. 3201. Rights to helium.

(a) Definition of helium-related project.—The term “helium-related project” means a project—

(1) to explore or produce crude helium; and

(2) to sell crude or refined helium.

(b) Expedited completion.—Notwithstanding any other provision of law, applicable environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for helium-related projects shall be completed on an expeditious basis and the shortest existing applicable process under that Act shall be used for such projects.

(c) Repeal of reservation of helium rights.—The first section of the Mineral Leasing Act (30 U.S.C. 181) is amended by striking the flush text that follows the last undesignated subsection.

(d) Rights to helium under leases under Mineral Leasing Act for Acquired Lands.—The Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) is amended by adding at the end the following:

“SEC. 12. Rights to helium.

“Any lease issued under this Act that authorizes exploration for, or development or production of, gas shall be considered to grant to the lessee a right of first refusal to engage in exploration for, and development and production of, helium on land that is subject to the lease in accordance with regulations issued by the Secretary.”.

subtitle DCritical Minerals

SEC. 3301. Definitions.

In this subtitle:

(1) CRITICAL MINERAL.—

(A) IN GENERAL.—The term “critical mineral” means any mineral, element, substance, or material designated as critical pursuant to section 3303.

(B) EXCLUSIONS.—The term “critical mineral” does not include—

(i) fuel minerals, including oil, natural gas, or any other fossil fuels; or

(ii) water, ice, or snow.

(2) CRITICAL MINERAL MANUFACTURING.—The term “critical mineral manufacturing” means—

(A) the exploration, development, mining, production, processing, refining, alloying, separation, concentration, magnetic sintering, melting, or beneficiation of critical minerals within the United States;

(B) the fabrication, assembly, or production, within the United States, of equipment, components, or other goods with energy technology-, defense-, agriculture-, consumer electronics-, or health care-related applications; or

(C) any other value-added, manufacturing-related use of critical minerals undertaken within the United States.

(3) INDIAN TRIBE.—The term “Indian tribe” has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

(4) SECRETARY.—The term “Secretary” means the Secretary of the Interior.

(5) STATE.—The term “State” means—

(A) a State;

(B) the District of Columbia;

(C) the Commonwealth of Puerto Rico;

(D) Guam;

(E) American Samoa;

(F) the Commonwealth of the Northern Mariana Islands; and

(G) the United States Virgin Islands.

SEC. 3302. Policy.

(a) In general.—Section 3 of the National Materials and Minerals Policy, Research and Development Act of 1980 (30 U.S.C. 1602) is amended in the second sentence—

(1) by striking paragraph (3) and inserting the following:

“(3) establish an analytical and forecasting capability for identifying critical mineral demand, supply, and other factors to allow informed actions to be taken to avoid supply shortages, mitigate price volatility, and prepare for demand growth and other market shifts;”;

(2) in paragraph (6), by striking “and” after the semicolon at the end; and

(3) by striking paragraph (7) and inserting the following:

“(7) facilitate the availability, development, and environmentally responsible production of domestic resources to meet national material or critical mineral needs;

“(8) avoid duplication of effort, prevent unnecessary paperwork, and minimize delays in the administration of applicable laws (including regulations) and the issuance of permits and authorizations necessary to explore for, develop, and produce critical minerals and to construct critical mineral manufacturing facilities in accordance with applicable environmental and land management laws;

“(9) strengthen—

“(A) educational and research capabilities at not lower than the secondary school level; and

“(B) workforce training for exploration and development of critical minerals and critical mineral manufacturing;

“(10) bolster international cooperation through technology transfer, information sharing, and other means;

“(11) promote the efficient production, use, and recycling of critical minerals;

“(12) develop alternatives to critical minerals; and

“(13) establish contingencies for the production of, or access to, critical minerals for which viable sources do not exist within the United States.”.

(b) Conforming amendment.—Section 2(b) of the National Materials and Minerals Policy, Research and Development Act of 1980 (30 U.S.C. 1601(b)) is amended by striking “(b) As used in this Act, the term” and inserting the following:

“(b) Definitions.—In this Act:

“(1) CRITICAL MINERAL.—The term ‘critical mineral’ means any mineral or element designated as a critical mineral pursuant to section 3303 of the Energy and Natural Resources Act of 2017.

“(2) MATERIALS.—The term”.

SEC. 3303. Critical mineral designations.

(a) Draft methodology.—Not later than 90 days after the date of enactment of this Act, the Secretary (acting through the Director of the United States Geological Survey) (referred to in this section as the “Secretary”), in consultation with relevant Federal agencies and entities, shall publish in the Federal Register for public comment a draft methodology for determining which minerals qualify as critical minerals based on an assessment of whether the minerals are—

(1) subject to potential supply restrictions (including restrictions associated with foreign political risk, abrupt demand growth, military conflict, violent unrest, anti-competitive or protectionist behaviors, and other risks throughout the supply chain); and

(2) important in use (including energy technology-, defense-, currency-, agriculture-, consumer electronics-, and health care-related applications).

(b) Availability of data.—If available data is insufficient to provide a quantitative basis for the methodology developed under this section, qualitative evidence may be used to the extent necessary.

(c) Final methodology.—After reviewing public comments on the draft methodology under subsection (a) and updating the draft methodology as appropriate, not later than 270 days after the date of enactment of this Act, the Secretary shall publish in the Federal Register a description of the final methodology for determining which minerals qualify as critical minerals.

(d) Designations.—

(1) IN GENERAL.—For purposes of carrying out this subtitle, the Secretary shall maintain a list of minerals and elements designated as critical, pursuant to the methodology under subsection (c).

(2) INITIAL LIST.—Subject to paragraph (1), not later than 1 year after the date of enactment of this Act, the Secretary shall publish in the Federal Register an initial list of minerals designated as critical pursuant to the final methodology under subsection (c) for the purpose of carrying out this subtitle.

(3) INCLUSIONS.—Notwithstanding the criteria under subsection (c), the Secretary may designate and include on the list any mineral or element determined by another Federal agency to be strategic and critical to the defense or national security of the United States.

(e) Subsequent review.—

(1) IN GENERAL.—The Secretary shall review the methodology and designations under subsections (c) and (d) at least every 3 years, or more frequently as the Secretary considers to be appropriate.

(2) REVISIONS.—Subject to subsection (d)(1), the Secretary may—

(A) revise the methodology described in this section;

(B) determine that minerals or elements previously determined to be critical minerals are no longer critical minerals; and

(C) designate additional minerals or elements as critical minerals.

(f) Notice.—On finalization of the methodology under subsection (c), the list under subsection (d), or any revision to the methodology or list under subsection (e), the Secretary shall submit to Congress written notice of the action.

SEC. 3304. Resource assessment.

(a) In general.—Not later than 4 years after the date of enactment of this Act, in consultation with applicable State (including geological surveys), local, academic, industry, and other entities, the Secretary shall complete a comprehensive national assessment of each critical mineral that—

(1) identifies and quantifies known critical mineral resources, using all available public and private information and datasets, including exploration histories; and

(2) provides a quantitative and qualitative assessment of undiscovered critical mineral resources throughout the United States, including probability estimates of tonnage and grade, using all available public and private information and datasets, including exploration histories.

(b) Supplementary information.—In carrying out this section, the Secretary may carry out surveys and field work (including drilling, remote sensing, geophysical surveys, geological mapping, and geochemical sampling and analysis) to supplement existing information and datasets available for determining the existence of critical minerals in the United States.

(c) Technical assistance.—At the request of the Governor of a State or the head of an Indian tribe, the Secretary may provide technical assistance to State governments and Indian tribes conducting critical mineral resource assessments on non-Federal land.

(d) Prioritization.—

(1) IN GENERAL.—The Secretary may sequence the completion of resource assessments for each critical mineral such that critical minerals considered to be most critical under the methodology established under section 3303 are completed first.

(2) REPORTING.—During the period beginning not later than 1 year after the date of enactment of this Act and ending on the date of completion of all of the assessments required under this section, the Secretary shall submit to Congress on an annual basis an interim report that—

(A) identifies the sequence and schedule for completion of the assessments if the Secretary sequences the assessments; or

(B) describes the progress of the assessments if the Secretary does not sequence the assessments.

(e) Updates.—The Secretary may periodically update the assessments conducted under this section based on—

(1) the generation of new information or datasets by the Federal Government; or

(2) the receipt of new information or datasets from critical mineral producers, State geological surveys, academic institutions, trade associations, or other persons.

(f) Additional surveys.—The Secretary shall complete a resource assessment for each additional mineral or element subsequently designated as a critical mineral under section 3303(e)(2) not later than 2 years after the designation of the mineral or element.

(g) Report.—Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the status of geological surveying of Federal land for any mineral commodity—

(1) for which the United States was dependent on a foreign country for more than 25 percent of the United States supply, as depicted in the report issued by the United States Geological Survey entitled “Mineral Commodity Summaries 2017”; but

(2) that is not designated as a critical mineral under section 3303.

SEC. 3305. Permitting.

(a) Performance improvements.—To improve the quality and timeliness of decisions, the Secretary (acting through the Director of the Bureau of Land Management) and the Secretary of Agriculture (acting through the Chief of the Forest Service) (referred to in this section as the “Secretaries”) shall, to the maximum extent practicable, with respect to critical mineral production on Federal land, complete Federal permitting and review processes with maximum efficiency and effectiveness, while supporting vital economic growth, by—

(1) establishing and adhering to timelines and schedules for the consideration of, and final decisions regarding, applications, operating plans, leases, licenses, permits, and other use authorizations for mineral-related activities on Federal land;

(2) establishing clear, quantifiable, and temporal permitting performance goals and tracking progress against those goals;

(3) engaging in early collaboration among agencies, project sponsors, and affected stakeholders—

(A) to incorporate and address the interests of those parties; and

(B) to minimize delays;

(4) ensuring transparency and accountability by using cost-effective information technology to collect and disseminate information regarding individual projects and agency performance;

(5) engaging in early and active consultation with State, local, and Indian tribal governments to avoid conflicts or duplication of effort, resolve concerns, and allow for concurrent, rather than sequential, reviews;

(6) providing demonstrable improvements in the performance of Federal permitting and review processes, including lower costs and more timely decisions;

(7) expanding and institutionalizing permitting and review process improvements that have proven effective;

(8) developing mechanisms to better communicate priorities and resolve disputes among agencies at the national, regional, State, and local levels; and

(9) developing other practices, such as preapplication procedures.

(b) Review and report.—Not later than 1 year after the date of enactment of this Act, the Secretaries shall submit to Congress a report that—

(1) identifies additional measures (including regulatory and legislative proposals, as appropriate) that would increase the timeliness of permitting activities for the exploration and development of domestic critical minerals;

(2) identifies options (including cost recovery paid by permit applicants) for ensuring adequate staffing and training of Federal entities and personnel responsible for the consideration of applications, operating plans, leases, licenses, permits, and other use authorizations for critical mineral-related activities on Federal land;

(3) quantifies the amount of time typically required (including range derived from minimum and maximum durations, mean, median, variance, and other statistical measures or representations) to complete each step (including those aspects outside the control of the executive branch, such as judicial review, applicant decisions, or State and local government involvement) associated with the development and processing of applications, operating plans, leases, licenses, permits, and other use authorizations for critical mineral-related activities on Federal land, which shall serve as a baseline for the performance metric under subsection (c); and

(4) describes actions carried out pursuant to subsection (a).

(c) Performance metric.—Not later than 90 days after the date of submission of the report under subsection (b), the Secretaries, after providing public notice and an opportunity to comment, shall develop and publish a performance metric for evaluating the progress made by the executive branch to expedite the permitting of activities that will increase exploration for, and development of, domestic critical minerals, while maintaining environmental standards.

(d) Annual reports.—Beginning with the first budget submission by the President under section 1105 of title 31, United States Code, after publication of the performance metric required under subsection (c), and annually thereafter, the Secretaries shall submit to Congress a report that—

(1) summarizes the implementation of recommendations, measures, and options identified in paragraphs (1) and (2) of subsection (b);

(2) using the performance metric under subsection (c), describes progress made by the executive branch, as compared to the baseline established pursuant to subsection (b)(3), on expediting the permitting of activities that will increase exploration for, and development of, domestic critical minerals; and

(3) compares the United States to other countries in terms of permitting efficiency and any other criteria relevant to the globally competitive critical minerals industry.

(e) Individual projects.—Using data from the Secretaries generated under subsection (d), the Director of the Office of Management and Budget shall prioritize inclusion of individual critical mineral projects on the website operated by the Office of Management and Budget in accordance with section 1122 of title 31, United States Code.

(f) Report of Small Business Administration.—Not later than 1 year and 300 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall submit to the applicable committees of Congress a report that assesses the performance of Federal agencies with respect to—

(1) complying with chapter 6 of title 5, United States Code (commonly known as the “Regulatory Flexibility Act”), in promulgating regulations applicable to the critical minerals industry; and

(2) performing an analysis of regulations applicable to the critical minerals industry that may be outmoded, inefficient, duplicative, or excessively burdensome.

(g) Application.—Section 41001(6)(A) of the FAST Act (42 U.S.C. 4370m(6)(A)) is amended in the matter preceding clause (i) by inserting “(including critical mineral manufacturing (as defined in section 3301 of the Energy and Natural Resources Act of 2017))” after “manufacturing”.

SEC. 3306. Federal Register process.

(a) Departmental review.—Absent any extraordinary circumstance, and except as otherwise required by law, the Secretary and the Secretary of Agriculture shall ensure that each Federal Register notice described in subsection (b) shall be—

(1) subject to any required reviews within the Department of the Interior or the Department of Agriculture; and

(2) published in final form in the Federal Register not later than 45 days after the date of initial preparation of the notice.

(b) Preparation.—The preparation of Federal Register notices required by law associated with the issuance of a critical mineral exploration or mine permit shall be delegated to the organizational level within the agency responsible for issuing the critical mineral exploration or mine permit.

(c) Transmission.—All Federal Register notices regarding official document availability, announcements of meetings, or notices of intent to undertake an action shall be originated in, and transmitted to the Federal Register from, the office in which, as applicable—

(1) the documents or meetings are held; or

(2) the activity is initiated.

SEC. 3307. Recycling, efficiency, and alternatives.

(a) Establishment.—The Secretary of Energy (referred to in this section as the “Secretary”) shall conduct a program of research and development—

(1) to promote the efficient production, use, and recycling of critical minerals throughout the supply chain; and

(2) to develop alternatives to critical minerals that do not occur in significant abundance in the United States.

(b) Cooperation.—In carrying out the program, the Secretary shall cooperate with appropriate—

(1) Federal agencies and National Laboratories;

(2) critical mineral producers;

(3) critical mineral processors;

(4) critical mineral manufacturers;

(5) trade associations;

(6) academic institutions;

(7) small businesses; and

(8) other relevant entities or individuals.

(c) Activities.—Under the program, the Secretary shall carry out activities that include the identification and development of—

(1) advanced critical mineral extraction, production, separation, alloying, or processing technologies that decrease the energy consumption, environmental impact, and costs of those activities, including—

(A) efficient water and wastewater management strategies;

(B) technologies and management strategies to control the environmental impacts of radionuclides in ore tailings; and

(C) technologies for separation and processing;

(2) technologies or process improvements that minimize the use, or lead to more efficient use, of critical minerals across the full supply chain;

(3) technologies, process improvements, or design optimizations that facilitate the recycling of critical minerals, and options for improving the rates of collection of products and scrap containing critical minerals from post-consumer, industrial, or other waste streams;

(4) commercial markets, advanced storage methods, energy applications, and other beneficial uses of critical minerals processing byproducts;

(5) alternative minerals, metals, and materials, particularly those available in abundance within the United States and not subject to potential supply restrictions, that lessen the need for critical minerals; and

(6) alternative energy technologies or alternative designs of existing energy technologies, particularly those that use minerals that—

(A) occur in abundance in the United States; and

(B) are not subject to potential supply restrictions.

(d) Reports.—Not later than 2 years after the date of enactment of this Act, and annually thereafter, the Secretary shall submit to Congress a report summarizing the activities, findings, and progress of the program.

SEC. 3308. Analysis and forecasting.

(a) Capabilities.—In order to evaluate existing critical mineral policies and inform future actions that may be taken to avoid supply shortages, mitigate price volatility, and prepare for demand growth and other market shifts, the Secretary, in consultation with the Energy Information Administration, academic institutions, and others in order to maximize the application of existing competencies related to developing and maintaining computer-models and similar analytical tools, shall conduct and publish the results of an annual report that includes—

(1) as part of the annually published Mineral Commodity Summaries from the United States Geological Survey, a comprehensive review of critical mineral production, consumption, and recycling patterns, including—

(A) the quantity of each critical mineral domestically produced during the preceding year;

(B) the quantity of each critical mineral domestically consumed during the preceding year;

(C) market price data or other price data for each critical mineral;

(D) an assessment of—

(i) critical mineral requirements to meet the national security, energy, economic, industrial, technological, and other needs of the United States during the preceding year;

(ii) the reliance of the United States on foreign sources to meet those needs during the preceding year; and

(iii) the implications of any supply shortages, restrictions, or disruptions during the preceding year;

(E) the quantity of each critical mineral domestically recycled during the preceding year;

(F) the market penetration during the preceding year of alternatives to each critical mineral;

(G) a discussion of international trends associated with the discovery, production, consumption, use, costs of production, prices, and recycling of each critical mineral as well as the development of alternatives to critical minerals; and

(H) such other data, analyses, and evaluations as the Secretary finds are necessary to achieve the purposes of this section; and

(2) a comprehensive forecast, entitled the “Annual Critical Minerals Outlook”, of projected critical mineral production, consumption, and recycling patterns, including—

(A) the quantity of each critical mineral projected to be domestically produced over the subsequent 1-year, 5-year, and 10-year periods;

(B) the quantity of each critical mineral projected to be domestically consumed over the subsequent 1-year, 5-year, and 10-year periods;

(C) an assessment of—

(i) critical mineral requirements to meet projected national security, energy, economic, industrial, technological, and other needs of the United States;

(ii) the projected reliance of the United States on foreign sources to meet those needs; and

(iii) the projected implications of potential supply shortages, restrictions, or disruptions;

(D) the quantity of each critical mineral projected to be domestically recycled over the subsequent 1-year, 5-year, and 10-year periods;

(E) the market penetration of alternatives to each critical mineral projected to take place over the subsequent 1-year, 5-year, and 10-year periods;

(F) a discussion of reasonably foreseeable international trends associated with the discovery, production, consumption, use, costs of production, and recycling of each critical mineral as well as the development of alternatives to critical minerals; and

(G) such other projections relating to each critical mineral as the Secretary determines to be necessary to achieve the purposes of this section.

(b) Proprietary information.—In preparing a report described in subsection (a), the Secretary shall ensure, consistent with section 5(f) of the National Materials and Minerals Policy, Research and Development Act of 1980 (30 U.S.C. 1604(f)), that—

(1) no person uses the information and data collected for the report for a purpose other than the development of or reporting of aggregate data in a manner such that the identity of the person or firm who supplied the information is not discernible and is not material to the intended uses of the information;

(2) no person discloses any information or data collected for the report unless the information or data has been transformed into a statistical or aggregate form that does not allow the identification of the person or firm who supplied particular information; and

(3) procedures are established to require the withholding of any information or data collected for the report if the Secretary determines that withholding is necessary to protect proprietary information, including any trade secrets or other confidential information.

SEC. 3309. Education and workforce.

(a) Workforce assessment.—Not later than 1 year and 300 days after the date of enactment of this Act, the Secretary of Labor (in consultation with the Secretary, the Director of the National Science Foundation, institutions of higher education with substantial expertise in mining, institutions of higher education with significant expertise in minerals research, including fundamental research into alternatives, and employers in the critical minerals sector) shall submit to Congress an assessment of the domestic availability of technically trained personnel necessary for critical mineral exploration, development, assessment, production, manufacturing, recycling, analysis, forecasting, education, and research, including an analysis of—

(1) skills that are in the shortest supply as of the date of the assessment;

(2) skills that are projected to be in short supply in the future;

(3) the demographics of the critical minerals industry and how the demographics will evolve under the influence of factors such as an aging workforce;

(4) the effectiveness of training and education programs in addressing skills shortages;

(5) opportunities to hire locally for new and existing critical mineral activities;

(6) the sufficiency of personnel within relevant areas of the Federal Government for achieving the policies described in section 3 of the National Materials and Minerals Policy, Research and Development Act of 1980 (30 U.S.C. 1602); and

(7) the potential need for new training programs to have a measurable effect on the supply of trained workers in the critical minerals industry.

(b) Curriculum study.—

(1) IN GENERAL.—The Secretary and the Secretary of Labor shall jointly enter into an arrangement with the National Academy of Sciences and the National Academy of Engineering under which the Academies shall coordinate with the National Science Foundation on conducting a study—

(A) to design an interdisciplinary program on critical minerals that will support the critical mineral supply chain and improve the ability of the United States to increase domestic, critical mineral exploration, development, production, manufacturing, research, including fundamental research into alternatives, and recycling;

(B) to address undergraduate and graduate education, especially to assist in the development of graduate level programs of research and instruction that lead to advanced degrees with an emphasis on the critical mineral supply chain or other positions that will increase domestic, critical mineral exploration, development, production, manufacturing, research, including fundamental research into alternatives, and recycling;

(C) to develop guidelines for proposals from institutions of higher education with substantial capabilities in the required disciplines for activities to improve the critical mineral supply chain and advance the capacity of the United States to increase domestic, critical mineral exploration, research, development, production, manufacturing, and recycling; and

(D) to outline criteria for evaluating performance and recommendations for the amount of funding that will be necessary to establish and carry out the program described in subsection (c).

(2) REPORT.—Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to Congress a description of the results of the study required under paragraph (1).

(c) Program.—

(1) ESTABLISHMENT.—The Secretary and the Secretary of Labor shall jointly conduct a competitive grant program under which institutions of higher education may apply for and receive 4-year grants for—

(A) startup costs for newly designated faculty positions in integrated critical mineral education, research, innovation, training, and workforce development programs consistent with subsection (b);

(B) internships, scholarships, and fellowships for students enrolled in programs related to critical minerals;

(C) equipment necessary for integrated critical mineral innovation, training, and workforce development programs; and

(D) research of critical minerals and their applications, particularly concerning the manufacture of critical components vital to national security.

(2) RENEWAL.—A grant under this subsection shall be renewable for up to 2 additional 3-year terms based on performance criteria outlined under subsection (b)(1)(D).

SEC. 3310. National geological and geophysical data preservation program.

Section 351(k) of the Energy Policy Act of 2005 (42 U.S.C. 15908(k)) is amended by striking “$30,000,000 for each of fiscal years 2006 through 2010” and inserting “$5,000,000 for each of fiscal years 2018 through 2027, to remain available until expended”.

SEC. 3311. Administration.

(a) In general.—The National Critical Materials Act of 1984 (30 U.S.C. 1801 et seq.) is repealed.

(b) Conforming amendment.—Section 3(d) of the National Superconductivity and Competitiveness Act of 1988 (15 U.S.C. 5202(d)) is amended in the first sentence by striking “, with the assistance of the National Critical Materials Council as specified in the National Critical Materials Act of 1984 (30 U.S.C. 1801 et seq.),”.

(c) Savings clauses.—

(1) IN GENERAL.—Nothing in this subtitle or an amendment made by this subtitle modifies any requirement or authority provided by—

(A) the matter under the heading “GEOLOGICAL SURVEY” of the first section of the Act of March 3, 1879 (43 U.S.C. 31(a)); or

(B) the first section of Public Law 87–626 (43 U.S.C. 31(b)).

(2) SECRETARIAL ORDER NOT AFFECTED.—This subtitle shall not apply to any mineral described in Secretarial Order No. 3324, issued by the Secretary of the Interior on December 3, 2012, in any area to which the order applies.

SEC. 3312. Authorization of appropriations.

There is authorized to be appropriated to carry out this subtitle $50,000,000 for each of fiscal years 2018 through 2027.

subtitle EFossil Energy

SEC. 3401. 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.”.

SEC. 3402. Establishment of coal technology program.

The Energy Policy Act of 2005 is amended by striking section 962 (42 U.S.C. 16292) and inserting the following:

“SEC. 962. Coal technology program.

“(a) Definitions.—In this section:

“(1) LARGE-SCALE PILOT PROJECT.—The term ‘large-scale pilot project’ means a pilot project that—

“(A) represents the scale of technology development beyond laboratory development and bench scale testing, but not yet advanced to the point of being tested under real operational conditions at commercial scale;

“(B) represents the scale of technology necessary to gain the operational data needed to understand the technical and performance risks of the technology before the application of that technology at commercial scale or in commercial-scale demonstration; and

“(C) is large enough—

“(i) to validate scaling factors; and

“(ii) to demonstrate the interaction between major components so that control philosophies for a new process can be developed and enable the technology to advance from large-scale pilot plant application to commercial-scale demonstration or application.

“(2) NET-NEGATIVE CARBON DIOXIDE EMISSIONS PROJECT.—The term ‘net-negative carbon dioxide emissions project’ means a project—

“(A) that employs a technology for thermochemical coconversion of coal and biomass fuels that—

“(i) uses a carbon capture system; and

“(ii) with carbon dioxide removal, the Secretary determines can provide electricity, fuels, or chemicals with net-negative carbon dioxide emissions from production and consumption of the end products, while removing atmospheric carbon dioxide;

“(B) that will proceed initially through a large-scale pilot project for which front-end engineering will be performed for bituminous, subbituminous, and lignite coals; and

“(C) through which each use of coal will be combined with the use of a regionally indigenous form of biomass energy, provided on a renewable basis, that is sufficient in quantity to allow for net-negative emissions of carbon dioxide (in combination with a carbon capture system), while avoiding impacts on food production activities.

“(3) PROGRAM.—The term ‘program’ means the program established under subsection (b)(1).

“(4) TRANSFORMATIONAL TECHNOLOGY.—

“(A) IN GENERAL.—The term ‘transformational technology’ means a power generation technology that represents an entirely new way to convert energy that will enable a step change in performance, efficiency, and cost of electricity as compared to the technology in existence on the date of enactment of the Energy and Natural Resources Act of 2017.

“(B) INCLUSIONS.—The term ‘transformational technology’ includes a broad range of technology improvements, including—

“(i) thermodynamic improvements in energy conversion and heat transfer, including—

“(I) oxygen combustion;

“(II) chemical looping; and

“(III) the replacement of steam cycles with supercritical carbon dioxide cycles;

“(ii) improvements in turbine technology;

“(iii) improvements in carbon capture systems technology; and

“(iv) any other technology the Secretary recognizes as transformational technology.

“(b) Coal technology program.—

“(1) IN GENERAL.—The Secretary shall establish a coal technology program to ensure the continued use of the abundant, domestic coal resources of the United States through the development of technologies that will significantly improve the efficiency, effectiveness, costs, and environmental performance of coal use.

“(2) REQUIREMENTS.—The program shall include—

“(A) a research and development program;

“(B) large-scale pilot projects;

“(C) demonstration projects; and

“(D) net-negative carbon dioxide emissions projects.

“(3) PROGRAM GOALS AND OBJECTIVES.—In consultation with the interested entities described in paragraph (4)(C), the Secretary shall develop goals and objectives for the program to be applied to the technologies developed within the program, taking into consideration the following objectives:

“(A) Ensure reliable, low-cost power from new and existing coal plants.

“(B) Achieve high conversion efficiencies.

“(C) Address emissions of carbon dioxide through high-efficiency platforms and carbon capture from new and existing coal plants.

“(D) Support small-scale and modular technologies to enable incremental capacity additions and load growth and large-scale generation technologies.

“(E) Support flexible baseload operations for new and existing applications of coal generation.

“(F) Further reduce emissions of criteria pollutants and reduce the use and manage the discharge of water in power plant operations.

“(G) Accelerate the development of technologies that have transformational energy conversion characteristics.

“(H) Validate geological storage of large volumes of anthropogenic sources of carbon dioxide and support the development of the infrastructure needed to support a carbon dioxide use and storage industry.

“(I) Examine methods of converting coal to other valuable products and commodities in addition to electricity.

“(4) CONSULTATIONS REQUIRED.—In carrying out the program, the Secretary shall—

“(A) undertake international collaborations, taking into consideration the recommendations of the National Coal Council;

“(B) use existing authorities to encourage international cooperation; and

“(C) consult with interested entities, including—

“(i) coal producers;

“(ii) industries that use coal;

“(iii) organizations that promote coal and advanced coal technologies;

“(iv) environmental organizations;

“(v) organizations representing workers; and

“(vi) organizations representing consumers.

“(c) Report.—

“(1) IN GENERAL.—Not later than 18 months after the date of enactment of the Energy and Natural Resources Act of 2017, the Secretary shall submit to Congress a report describing the performance standards adopted under subsection (b)(3).

“(2) UPDATE.—Not less frequently than once every 2 years after the initial report is submitted under paragraph (1), the Secretary shall submit to Congress a report describing the progress made towards achieving the objectives and performance standards adopted under subsection (b)(3).

“(d) Funding.—

“(1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary to carry out this section, to remain available until expended—

“(A) for activities under the research and development program component described in subsection (b)(2)(A)—

“(i) $275,000,000 for each of fiscal years 2018 through 2021; and

“(ii) $200,000,000 for fiscal year 2022;

“(B) for activities under the demonstration projects program component described in subsection (b)(2)(C)—

“(i) $50,000,000 for each of fiscal years 2018 through 2021; and

“(ii) $75,000,000 for fiscal year 2022;

“(C) subject to paragraph (2), for activities under the large-scale pilot projects program component described in subsection (b)(2)(B), $285,000,000 for each of fiscal years 2018 through 2022; and

“(D) for activities under the net-negative carbon dioxide emissions projects program component described in subsection (b)(2)(D), $22,000,000 for each of fiscal years 2018 through 2022.

“(2) COST SHARING FOR LARGE-SCALE PILOT PROJECTS.—Activities under subsection (b)(2)(B) shall be subject to the cost-sharing requirements of section 988(b).”.

SEC. 3403. Report on carbon dioxide capture contracting authority.

Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is amended by adding at the end the following:

“(e) Report on carbon dioxide capture contracting authority.—

“(1) DEFINITION OF ELECTRIC GENERATION UNIT.—In this subsection, the term ‘electric generation unit’ means an electric generation unit that—

“(A) uses coal-based generation technology; and

“(B) is capable of capturing carbon dioxide emissions from the unit.

“(2) REPORT.—Not later than 180 days after the date of enactment of the Energy and Natural Resources Act of 2017, the Secretary shall prepare and submit to the appropriate committees of Congress a report that—

“(A) describes the costs and benefits of entering into long-term binding contracts on behalf of the Federal Government with qualified parties to provide support for capturing carbon dioxide from electricity generated at an electric generation unit or carbon dioxide captured from an electric generation unit and sold to a purchaser for—

“(i) the recovery of crude oil; or

“(ii) other purposes for which a commercial market exists;

“(B) contains an analysis of how the Department would establish, implement, and maintain a contracting program described in subparagraph (A); and

“(C) outlines options for how contracts may be structured, and regulations that would be necessary, to implement a contracting program described in subparagraph (A).”.

subtitle FNuclear

SEC. 3501. Nuclear energy innovation capabilities.

(a) Nuclear energy.—Section 951 of the Energy Policy Act of 2005 (42 U.S.C. 16271) is amended to read as follows:

“SEC. 951. Nuclear energy.

“(a) Mission.—

“(1) IN GENERAL.—The Secretary shall carry out programs of civilian nuclear research, development, demonstration, and commercial application, including activities under this subtitle.

“(2) CONSIDERATIONS.—The programs carried out under paragraph (1) shall take into consideration the following objectives:

“(A) Providing research infrastructure to promote scientific progress and enable users from academia, the National Laboratories, and the private sector to make scientific discoveries relevant for nuclear, chemical, and materials science engineering.

“(B) Maintaining nuclear energy research and development programs at the National Laboratories and institutions of higher education, including infrastructure at the National Laboratories and institutions of higher education.

“(C) Providing the technical means to reduce the likelihood of nuclear proliferation.

“(D) Increasing confidence margins for public safety of nuclear energy systems.

“(E) Reducing the environmental impact of activities relating to nuclear energy.

“(F) Supporting technology transfer from the National Laboratories to the private sector.

“(G) Enabling the private sector to partner with the National Laboratories to demonstrate novel reactor concepts for the purpose of resolving technical uncertainty associated with the objectives described in subparagraphs (A) through (F).

“(b) Definitions.—In this subtitle:

“(1) ADVANCED NUCLEAR REACTOR.—The term ‘advanced nuclear reactor’ means—

“(A) a nuclear fission reactor with significant improvements over the most recent generation of nuclear fission reactors, which may include—

“(i) inherent safety features;

“(ii) lower waste yields;

“(iii) greater fuel utilization;

“(iv) superior reliability;

“(v) resistance to proliferation;

“(vi) increased thermal efficiency; and

“(vii) the ability to integrate into electric and nonelectric applications; or

“(B) a nuclear fusion reactor.

“(2) COMMISSION.—The term ‘Commission’ means the Nuclear Regulatory Commission.

“(3) FAST NEUTRON.—The term ‘fast neutron’ means a neutron with kinetic energy above 100 kiloelectron volts.

“(4) NATIONAL LABORATORY.—

“(A) IN GENERAL.—Except as provided in subparagraph (B), the term ‘National Laboratory’ has the meaning given the term in section 2.

“(B) LIMITATION.—With respect to the Lawrence Livermore National Laboratory, the Los Alamos National Laboratory, and the Sandia National Laboratories, the term ‘National Laboratory’ means only the civilian activities of the laboratory.

“(5) NEUTRON FLUX.—The term ‘neutron flux’ means the intensity of neutron radiation measured as a rate of flow of neutrons applied over an area.

“(6) NEUTRON SOURCE.—The term ‘neutron source’ means a research machine that provides neutron irradiation services for—

“(A) research on materials sciences and nuclear physics; and

“(B) testing of advanced materials, nuclear fuels, and other related components for reactor systems.”.

(b) Nuclear energy research programs.—

(1) IN GENERAL.—Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is amended—

(A) by striking subsection (c); and

(B) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.

(2) CONFORMING AMENDMENT.—Section 641(b)(1) of the Energy Policy Act of 2005 (42 U.S.C. 16021(b)(1)) is amended by striking “section 942(d)” and inserting “section 952(c)”.

(c) Advanced fuel cycle initiative.—Section 953(a) of the Energy Policy Act of 2005 (42 U.S.C. 16273(a)) is amended by striking “, acting through the Director of the Office of Nuclear Energy, Science and Technology,”.

(d) University nuclear science and engineering support.—Section 954(d)(4) of the Energy Policy Act of 2005 (42 U.S.C. 16274(d)(4)) is amended by striking “as part of a taking into consideration effort that emphasizes” and inserting “that emphasize”.

(e) Department of Energy civilian nuclear infrastructure and facilities.—Section 955 of the Energy Policy Act of 2005 (42 U.S.C. 16275) is amended—

(1) by striking subsections (c) and (d); and

(2) by adding at the end the following:

“(c) Versatile neutron source.—

“(1) MISSION NEED.—

“(A) IN GENERAL.—Not later than December 31, 2017, the Secretary shall determine the mission need for a versatile reactor-based fast neutron source, which shall operate as a national user facility.

“(B) CONSULTATIONS REQUIRED.—In carrying out subparagraph (A), the Secretary shall consult with the private sector, institutions of higher education, the National Laboratories, and relevant Federal agencies to ensure that the user facility described in subparagraph (A) will meet the research needs of the largest practicable majority of prospective users.

“(2) ESTABLISHMENT.—As soon as practicable after determining the mission need under paragraph (1)(A), the Secretary shall submit to the appropriate committees of Congress a detailed plan for the establishment of the user facility.

“(3) FACILITY REQUIREMENTS.—

“(A) CAPABILITIES.—The Secretary shall ensure that the user facility will provide, at a minimum, the following capabilities:

“(i) Fast neutron spectrum irradiation capability.

“(ii) Capacity for upgrades to accommodate new or expanded research needs.

“(B) CONSIDERATIONS.—In carrying out the plan submitted under paragraph (2), the Secretary shall consider the following:

“(i) Capabilities that support experimental high-temperature testing.

“(ii) Providing a source of fast neutrons at a neutron flux, higher than that at which current research facilities operate, sufficient to enable research for an optimal base of prospective users.

“(iii) Maximizing irradiation flexibility and irradiation volume to accommodate as many concurrent users as possible.

“(iv) Capabilities for irradiation with neutrons of a lower energy spectrum.

“(v) Multiple loops for fuels and materials testing in different coolants.

“(vi) Additional pre-irradiation and post-irradiation examination capabilities.

“(vii) Lifetime operating costs and lifecycle costs.

“(4) DEADLINE FOR ESTABLISHMENT.—The Secretary shall, to the maximum extent practicable, complete construction of, and approve the start of operations for, the user facility by not later than December 31, 2026.

“(5) REPORTING.—The Secretary shall include in the annual budget request of the Department an explanation for any delay in the progress of the Department in completing the user facility by the deadline described in paragraph (4).

“(6) COORDINATION.—The Secretary shall leverage the best practices for management, construction, and operation of national user facilities from the Office of Science.”.

(f) Security of nuclear facilities.—Section 956 of the Energy Policy Act of 2005 (42 U.S.C. 16276) is amended by striking “, acting through the Director of the Office of Nuclear Energy, Science and Technology,”.

(g) High-performance computation and supportive research.—Section 957 of the Energy Policy Act of 2005 (42 U.S.C. 16277) is amended to read as follows:

“SEC. 957. High-performance computation and supportive research.

“(a) Modeling and simulation.—The Secretary shall carry out a program to enhance the capabilities of the United States to develop new reactor technologies through high-performance computation modeling and simulation techniques.

“(b) Coordination.—In carrying out the program under subsection (a), the Secretary shall coordinate with relevant Federal agencies as described by the National Strategic Computing Initiative established by Executive Order 13702 (80 Fed. Reg. 46177 (July 29, 2015)), while taking into account the following objectives:

“(1) Using expertise from the private sector, institutions of higher education, and the National Laboratories to develop computational software and capabilities that prospective users may access to accelerate research and development of advanced nuclear reactor systems and reactor systems for space exploration.

“(2) Developing computational tools to simulate and predict nuclear phenomena that may be validated through physical experimentation.

“(3) Increasing the utility of the research infrastructure of the Department by coordinating with the Advanced Scientific Computing Research program within the Office of Science.

“(4) Leveraging experience from the Energy Innovation Hub for Modeling and Simulation.

“(5) Ensuring that new experimental and computational tools are accessible to relevant research communities, including private sector entities engaged in nuclear energy technology development.

“(c) Supportive research activities.—The Secretary shall consider support for additional research activities to maximize the utility of the research facilities of the Department, including physical processes—

“(1) to simulate degradation of materials and behavior of fuel forms; and

“(2) for validation of computational tools.”.

(h) Enabling nuclear energy innovation.—Subtitle E of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16271 et seq.) is amended by adding at the end the following:

“SEC. 958. Enabling nuclear energy innovation.

“(a) National reactor innovation center.—There is authorized a program to enable the testing and demonstration of reactor concepts to be proposed and funded by the private sector.

“(b) Technical expertise.—In carrying out the program under subsection (a), the Secretary shall leverage the technical expertise of relevant Federal agencies and the National Laboratories in order to minimize the time required to enable construction and operation of privately funded experimental reactors at National Laboratories or other Department-owned sites.

“(c) Objectives.—The reactors described in subsection (b) shall operate to meet the following objectives:

“(1) Enabling physical validation of advanced nuclear reactor concepts.

“(2) Resolving technical uncertainty and increasing practical knowledge relevant to safety, resilience, security, and functionality of advanced nuclear reactor concepts.

“(3) General research and development to improve nascent technologies.

“(d) Sharing technical expertise.—In carrying out the program under subsection (a), the Secretary may enter into a memorandum of understanding with the Chairman of the Commission in order to share technical expertise and knowledge through—

“(1) enabling the testing and demonstration of advanced nuclear reactor concepts to be proposed and funded by the private sector;

“(2) operating a database to store and share data and knowledge relevant to nuclear science and engineering between Federal agencies and the private sector;

“(3) developing and testing electric and nonelectric integration and energy conversion systems relevant to advanced nuclear reactors;

“(4) leveraging expertise from the Commission with respect to safety analysis; and

“(5) enabling technical staff of the Commission to actively observe and learn about technologies developed under the program.

“(e) Agency coordination.—The Chairman of the Commission and the Secretary shall enter into a memorandum of understanding regarding the following:

“(1) Ensuring that—

“(A) the Department has sufficient technical expertise to support the timely research, development, demonstration, and commercial application by the civilian nuclear industry of safe and innovative advanced nuclear reactor technology; and

“(B) the Commission has sufficient technical expertise to support the evaluation of applications for licenses, permits, and design certifications and other requests for regulatory approval for advanced nuclear reactors.

“(2) The use of computers and software codes to calculate the behavior and performance of advanced nuclear reactors based on mathematical models of the physical behavior of advanced nuclear reactors.

“(3) Ensuring that—

“(A) the Department maintains and develops the facilities necessary to enable the timely research, development, demonstration, and commercial application by the civilian nuclear industry of safe and innovative reactor technology; and

“(B) the Commission has access to the facilities described in subparagraph (A), as needed.

“(f) Reporting requirements.—

“(1) IN GENERAL.—Not later than 180 days after the date of enactment of the Energy and Natural Resources Act of 2017, the Secretary, in consultation with the National Laboratories, relevant Federal agencies, and other stakeholders, shall submit to the appropriate committees of Congress a report assessing the capabilities of the Department to authorize, host, and oversee privately funded experimental advanced nuclear reactors as described in subsection (b).

“(2) CONTENTS.—The report submitted under paragraph (1) shall address—

“(A) the safety review and oversight capabilities of the Department, including options to leverage expertise from the Commission and the National Laboratories;

“(B) options to regulate privately proposed and funded experimental reactors hosted by the Department;

“(C) potential sites capable of hosting privately funded experimental advanced nuclear reactors;

“(D) the efficacy of the available contractual mechanisms of the Department to partner with the private sector and Federal agencies, including cooperative research and development agreements, strategic partnership projects, and agreements for commercializing technology;

“(E) the liability of the Federal Government with respect to the disposal of low-level radioactive waste, spent nuclear fuel, or high-level radioactive waste (as those terms are defined in section 2 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101));

“(F) the impact on the aggregate inventory in the United States of low-level radioactive waste, spent nuclear fuel, or high-level radioactive waste (as those terms are defined in section 2 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101));

“(G) potential cost structures relating to physical security, decommissioning, liability, and other long-term project costs; and

“(H) other challenges or considerations identified by the Secretary.

“(3) UPDATES.—Once every 2 years, the Secretary shall update relevant provisions of the report submitted under paragraph (1) and submit to the appropriate committees of Congress the update.

“(g) Savings clauses.—

“(1) LICENSING REQUIREMENT.—Nothing in this section authorizes the Secretary or any person to construct or operate a nuclear reactor for the purpose of demonstrating the suitability for commercial application of the nuclear reactor unless licensed by the Commission in accordance with section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842).

“(2) FINANCIAL PROTECTION.—Any activity carried out under this section that involves the risk of public liability shall be subject to the financial protection or indemnification requirements of section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) (commonly known as the ‘Price-Anderson Act’).”.

(i) Budget plan.—

(1) IN GENERAL.—Subtitle E of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16271 et seq.) (as amended by subsection (h)) is amended by adding at the end the following:

“SEC. 959. Budget plan.

“(a) In general.—Not later than 1 year after the date of enactment of the Energy and Natural Resources Act of 2017, 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 2 alternative 10-year budget plans for civilian nuclear energy research and development by the Secretary, as described in subsections (b) through (d).

“(b) Budget plan alternative 1.—One of the budget plans submitted under subsection (a) shall assume constant annual funding for 10 years at the appropriated level for the civilian nuclear energy research and development of the Department for fiscal year 2017.

“(c) Budget plan alternative 2.—One of the budget plans submitted under subsection (a) shall be an unconstrained budget.

“(d) Inclusions.—Each alternative budget plan submitted under subsection (a) shall include—

“(1) a prioritized list of the programs, projects, and activities of the Department to best support the development of advanced nuclear reactor technologies;

“(2) realistic budget requirements for the Department to implement sections 955(c), 957, and 958; and

“(3) the justification of the Department for continuing or terminating existing civilian nuclear energy research and development programs.”.

(2) REPORT ON FUSION INNOVATION.—

(A) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a report identifying engineering designs for innovative fusion energy systems that have the potential to demonstrate net energy production not later than 15 years after the start of construction.

(B) INCLUSIONS.—The report submitted under subparagraph (A) shall identify budgetary requirements that would be necessary for the Department to carry out a fusion innovation initiative to accelerate research and development of the engineering designs identified in the report.

(3) CONFORMING AMENDMENTS.—The table of contents for the Energy Policy Act of 2005 is amended by striking the item relating to section 957 and inserting the following:


“957. High-performance computation and supportive research.

“958. Enabling nuclear energy innovation.

“959. Budget plan.”.

(j) Advanced nuclear reactor regulatory framework.—

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Nuclear Regulatory Commission (referred to in this subsection as the “Commission”) shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a plan for developing an efficient, risk-informed, and technology-neutral framework for licensing advanced nuclear reactors (as defined in subsection (b) of section 951 of the Energy Policy Act of 2005 (42 U.S.C. 16271) (as amended by subsection (a))).

(2) REQUIREMENTS.—Consistent with the role of the Commission in protecting public health and safety and common defense and security, the plan submitted under paragraph (1) shall evaluate the following:

(A) The unique aspects of advanced nuclear reactor licensing and any associated legal, regulatory, and policy issues the Commission will need to address to develop a framework for licensing advanced nuclear reactors.

(B) Options for licensing advanced nuclear reactors under—

(i) regulations of the Commission under title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act);

(ii) a proposed new regulatory framework; or

(iii) a combination of the approaches described in clauses (i) and (ii).

(C) Options to expedite and streamline the licensing of advanced nuclear reactors, including opportunities—

(i) to minimize the time from the date of the application submission to the date of the final Commission licensing decision; and

(ii) to minimize the delays that may result from any necessary amendments or supplements to applications.

(D) Options to expand the incorporation of consensus-based codes and standards into the advanced nuclear reactor regulatory framework—

(i) to minimize the time to completion of licensing; and

(ii) to provide flexibility in implementation of the framework.

(E) Options to make the advanced nuclear reactor licensing framework more predictable, including considering opportunities to improve the process by which application review milestones are established and maintained.

(F) Options to allow applicants to use phased review processes under which the Commission issues approvals that do not require the Commission to rereview previously approved information, including considering the ability of the Commission to review and conditionally approve partial applications, early design information, and submissions that contain design criteria and processes to be used to develop information to support a later phase of the design review.

(G) The extent to which action by, or modifications of policies of, the Commission are needed to implement any part of the plan required under paragraph (1).

(H) The role of licensing advanced nuclear reactors within long-term strategic resource planning, staffing, and funding levels of the Commission.

(I) Options to provide cost-sharing financial structures for license applicants in a phased licensing process.

(3) COORDINATION AND STAKEHOLDER INPUT REQUIRED.—In developing the plan under paragraph (1), the Commission shall seek input from the Department, the nuclear industry, and other public stakeholders.

(4) COST AND SCHEDULE ESTIMATE.—The plan required under paragraph (1) shall include proposed cost estimates, budgets, and specific milestones for implementing the advanced nuclear reactor regulatory framework by September 30, 2019.

(5) DESIGN CERTIFICATION STATUS.—

(A) IN GENERAL.—In the first budget request of the Commission after the date of acceptance of any design certification application for an advanced nuclear reactor, and annually thereafter, the Commission shall provide the status of performance metrics and milestone schedules for the advanced nuclear reactor.

(B) REQUIREMENT.—A budget request under subparagraph (A) shall include a plan to correct or recover from any milestone schedule delays for the advanced nuclear reactor, including any delays because of the inability of the Commission to commit resources for the review by the Commission of the design certification applications.

(k) User fees and annual charges.—Section 6101(c)(2)(A) of the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended—

(1) in clause (iii), by striking “and” at the end;

(2) in clause (iv), by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(v) for fiscal years ending before October 1, 2020, amounts appropriated to the Commission for activities related to the development of regulatory infrastructure for advanced nuclear reactor technologies (as defined in subsection (b) of section 951 of the Energy Policy Act of 2005 (42 U.S.C. 16271)).”.

SEC. 3502. Next generation nuclear plant project.

Section 642(b) of the Energy Policy Act of 2005 (42 U.S.C. 16022(b)) is amended—

(1) by striking paragraph (3); and

(2) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

subtitle GWorkforce Development

SEC. 3601. 21st Century Energy Workforce Advisory Board.

(a) Establishment.—The Secretary shall establish the 21st Century Energy Workforce Advisory Board (referred to in this section as the “Board”), to develop a strategy for the support and development of a skilled energy workforce that—

(1) meets the current and future industry and labor needs of the energy sector;

(2) provides opportunities for students to become qualified for placement in traditional energy sector and clean energy sector jobs;

(3) aligns apprenticeship programs and workforce development programs to provide industry recognized certifications and credentials;

(4) encourages leaders in the education system of the United States to equip students with the skills, mentorships, training, and technical expertise necessary to fill the employment opportunities vital to managing and operating the energy- and manufacturing-related industries of the United States;

(5) appropriately supports other Federal agencies;

(6) strengthens and more fully engages workforce training programs of the Department and the National Laboratories in carrying out the Minorities in Energy Initiative of the Department and other Department workforce priorities;

(7) supports the design and replication of existing model energy curricula, particularly in new and emerging technologies, that leads to industry-wide credentials;

(8) develops plans to support and retrain displaced and unemployed energy sector workers; and

(9) makes a Department priority to provide education and job training to underrepresented groups, including ethnic minorities, Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)), women, veterans, and socioeconomically disadvantaged individuals.

(b) Membership.—

(1) IN GENERAL.—The Board shall be composed of 9 members, with the initial members of the Board to be appointed by the Secretary not later than 1 year after the date of enactment of this Act.

(2) NOMINATIONS.—Not later than 1 year after the date of enactment of this Act, the President's Council of Advisors on Science and Technology shall nominate for appointment to the Board under paragraph (1) not less than 18 individuals who meet the qualifications described in paragraph (3).

(3) QUALIFICATIONS.—Each individual nominated for appointment to the Board under paragraph (1) shall—

(A) be eminent in the field of economics or workforce development;

(B) have expertise in relevant traditional energy industries and clean energy industries;

(C) have expertise in secondary and postsecondary education;

(D) have expertise in energy workforce development or apprentice programs of States and units of local government;

(E) have expertise in relevant organized labor organizations; or

(F) have expertise in bringing underrepresented groups, including ethnic minorities, women, veterans, and socioeconomically disadvantaged individuals, into the workforce.

(4) REPRESENTATION.—The membership of the Board shall be representative of the broad range of the energy industry, labor organizations, workforce development, education, minority participation, cybersecurity, and economics disciplines related to activities carried out under this section.

(5) LIMITATION.—No individual shall be nominated for appointment to the Board who is an employee of an entity applying for a grant under section 3602.

(c) Advisory Board Review and Recommendations.—

(1) DETERMINATION BY BOARD.—In developing the strategy required under subsection (a), the Board shall—

(A) determine whether there are opportunities to more effectively and efficiently use the capabilities of the Department in the development of a skilled energy workforce;

(B) identify ways in which the Department could work with other relevant Federal agencies, States, units of local government, educational institutions, labor, and industry in the development of a skilled energy workforce;

(C) identify ways in which the Department and National Laboratories can—

(i) increase outreach to minority-serving institutions; and

(ii) make resources available to increase the number of skilled minorities and women trained to go into the energy- and manufacturing-related sectors;

(D) identify ways in which the Department and National Laboratories can—

(i) increase outreach to displaced and unemployed energy sector workers; and

(ii) make resources available to provide training to displaced and unemployed energy sector workers to reenter the energy workforce; and

(E) identify the energy sectors in greatest need of workforce training and develop guidelines for the skills necessary to develop a workforce trained to work in those energy sectors.

(2) REQUIRED ANALYSIS.—In developing the strategy required under subsection (a), the Board shall analyze the effectiveness of—

(A) existing Department directed support; and

(B) developing energy workforce training programs.

(3) REPORT.—Not later than 1 year after the date on which the Board is established under this section, and each year thereafter, the Board shall submit to the Secretary and Congress, and make public, a report containing the findings of the Board and model energy curricula with respect to the strategy required to be developed under subsection (a).

(d) Report by Secretary.—Not later than 18 months after the date on which the Board is established under this section, the Secretary shall submit to the Committees on Appropriations of Senate and the House of Representatives, 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—

(1) describes whether the Secretary approves or disapproves the recommendations of the Board under subsection (c)(3); and

(2) provides an implementation plan for recommendations approved by the Board under paragraph (1).

(e) Clearinghouse.—Based on the recommendations of the Board, the Secretary shall establish a clearinghouse—

(1) to maintain and update information and resources on training and workforce development programs for energy- and manufacturing-related jobs; and

(2) to act as a resource, and provide guidance, for secondary schools, institutions of higher education (including community colleges and minority-serving institutions), workforce development organizations, labor management organizations, and industry organizations that would like to develop and implement energy- and manufacturing-related training programs.

(f) Outreach to minority-serving institutions.—In developing the strategy under subsection (a), the Board shall—

(1) give special consideration to increasing outreach to minority-serving institutions (including historically black colleges and universities, predominantly black institutions, Hispanic serving institutions, and tribal institutions);

(2) make resources available to minority-serving institutions with the objective of increasing the number of skilled minorities and women trained to go into the energy and manufacturing sectors; and

(3) encourage industry to improve the opportunities for students of minority-serving institutions to participate in industry internships and cooperative work-study programs.

(g) Sunset.—The Board established under this section shall remain in effect until September 30, 2021.

SEC. 3602. 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 public or nonprofit 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;

(C) postsecondary education organizations; and

(D) workforce development boards;

(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 or a State (as defined in 202 of the Energy Conservation and Production Act (42 U.S.C. 6802)) (referred to in this section as the “State”);

(2) work with the Secretary of Defense and the Secretary of Veterans Affairs or veteran service organizations recognized by the Secretary of Veterans Affairs under section 5902 of title 38, United States Code, to transition members of the Armed Forces and veterans to careers in the energy sector;

(3) work with Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)), tribal organizations (as defined in section 3765 of title 38, United States Code), and Native American veterans (as defined in section 3765 of title 38, United States Code), including veterans who are a descendant of a Native (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602);

(4) 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;

(5) have a State-supported entity included in the consortium applying for the grant;

(6) include an apprenticeship program registered with the Department of Labor or a State as part of the job training and education program;

(7) provide support services and career coaching;

(8) provide introductory energy workforce development training;

(9) work with minority-serving institutions to provide job training to increase the number of skilled minorities and women in the energy sector;

(10) provide job training for displaced and unemployed workers in the energy sector;

(11) establish a community college or 2-year technical college-based “Center of Excellence” for an energy and maritime workforce technical training program; or

(12) are located in close proximity to marine or port facilities in the Gulf of Mexico, Atlantic Ocean, Pacific Ocean, Arctic Ocean, Bering Sea, Gulf of Alaska, or Great Lakes.

(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 an individual 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 appropriate agencies of the Federal Government and coordinate the proposed activities of the applicant with existing State and local programs.

(j) Direct assistance.—In awarding grants under this section, the Secretary shall provide direct assistance (including technical expertise, wraparound services, career coaching, mentorships, internships, and partnerships) to entities that receive a grant under this section.

(k) 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.

(l) 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.

(m) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2018 through 2021.

subtitle HRecycling

SEC. 3701. Recycled carbon fiber.

(a) Study.—

(1) IN GENERAL.—The Secretary shall conduct a study on—

(A) the technology of recycled carbon fiber and production waste carbon fiber; and

(B) the potential lifecycle energy savings and economic impact of recycled carbon fiber.

(2) FACTORS FOR CONSIDERATION.—In conducting the study under paragraph (1), the Secretary shall consider—

(A) 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;

(B) any existing or potential barriers to recycling carbon fiber or using recycled carbon fiber;

(C) any financial incentives that may be necessary for the development of recycled carbon fiber or production waste carbon fiber;

(D) the potential lifecycle savings in energy from producing recycled carbon fiber, as compared to producing new carbon fiber;

(E) the best uses for recycled carbon fiber;

(F) the potential reduction in carbon dioxide emissions from producing recycled carbon fiber, as compared to producing new carbon fiber;

(G) the economic benefits gained from using recycled carbon fiber or production waste carbon fiber;

(H) workforce training and skills needed to address labor demands in the development of recycled carbon fiber or production waste carbon fiber; and

(I) how the Department can leverage existing efforts in the industry on the use of production waste carbon fiber.

(3) 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 paragraph (1).

(b) Recycled carbon fiber demonstration project.—On completion of the study required under subsection (a)(1), 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.

(c) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary to carry out this section $10,000,000, to remain available until expended.

SEC. 3702. Energy generation and regulatory relief study regarding recovery and conversion of nonrecycled mixed plastics.

(a) Definitions.—In this section:

(1) ENGINEERED FUEL.—The term “engineered fuel” means a solid fuel that is manufactured from nonrecycled constituents of municipal solid waste or other secondary materials.

(2) GASIFICATION.—The term “gasification” means a process through which nonrecycled waste is heated and converted to synthesis gas in an oxygen-deficient atmosphere, which can be converted into fuels such as ethanol or other chemical feedstocks.

(3) NONRECYCLED PLASTICS.—The term “nonrecycled plastics” means post-use plastics that are not recycled in commercial markets.

(4) PYROLYSIS.—The term “pyrolysis” means a process through which nonrecycled plastics are heated in the absence of oxygen until melted and thermally decomposed, and are then cooled, condensed, and converted into synthetic crude oil or refined into synthetic fuels and feedstocks such as diesel or naphtha.

(b) Study.—With respect to nonrecycled mixed plastics that are part of municipal solid waste or other secondary materials in the United States (and are often deposited in landfills), the Secretary shall conduct a study to determine the manner in which the United States can make progress toward a cost-effective system (including with respect to environmental issues) through which pyrolysis, gasification, and other innovative technologies such as engineered fuels are used to convert such plastics, alone or in combination with other municipal solid waste or secondary materials, into materials that can be used to generate electric energy or fuels or as chemical feedstocks.

(c) Completion of study.—Not later than 2 years after the date of enactment of this Act, the Secretary shall complete the study described in subsection (b) and submit to the appropriate committees of Congress reports providing findings and recommendations developed through the study.

(d) Funding.—The Secretary may use unobligated funds of the Department to carry out this section.

SEC. 3703. Eligible projects.

Section 1703(b)(1) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)(1)) is amended by inserting “(excluding the burning of commonly recycled paper that has been segregated from solid waste to generate electricity)” after “systems”.

TITLE IVAccountability

subtitle ALoan programs

SEC. 4001. 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)”.

(3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) shall take effect on October 1, 2019.

(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. 4002. 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.

“(3) PROHIBITION ON USE OF APPROPRIATED FUNDS.—Amounts appropriated to the Department of Energy before the date of enactment of this subsection shall not be available to be used for the cost of loan guarantees made to State energy financing institutions under this subsection.”.

SEC. 4003. Fees for loans.

Section 136 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17013) is amended by striking subsection (f) and inserting the following:

“(f) Fees.—

“(1) IN GENERAL.—The Secretary shall charge and collect fees for loans provided under this section in amounts that the Secretary determines are sufficient to cover applicable administrative expenses associated with the loans, including reasonable closing fees on the loans.

“(2) AVAILABILITY.—Fees collected under paragraph (1) shall—

“(A) be deposited by the Secretary into the Treasury; and

“(B) remain available until expended, subject to such other conditions as are contained in annual appropriations Acts.”.

SEC. 4004. Department of Energy Indian energy education planning and management assistance program.

Section 2602(b)(6) of the Energy Policy Act of 1992 (25 U.S.C. 3502(b)(6)) is amended by striking “2016” and inserting “2027”.

subtitle BEnergy-Water nexus

SEC. 4101. Nexus of energy and water for sustainability.

(a) Definitions.—In this section:

(1) ENERGY-WATER NEXUS.—The term “energy-water nexus” means the links between—

(A) the water needed to produce fuels, electricity, and other forms of energy; and

(B) the energy needed to transport, reclaim, and treat water and wastewater.

(2) INTERAGENCY COORDINATION COMMITTEE.—The term “Interagency Coordination Committee” means the Committee on the Nexus of Energy and Water for Sustainability (or the “NEWS Committee”) established under subsection (b)(1).

(3) NEXUS OF ENERGY AND WATER SUSTAINABILITY OFFICE; NEWS OFFICE.—The term “Nexus of Energy and Water Sustainability Office” or the “NEWS Office” means an office located at the Department and managed in cooperation with the Department of the Interior pursuant to an agreement between the 2 agencies to carry out leadership and administrative functions for the Interagency Coordination Committee.

(4) RD&D ACTIVITIES.—The term “RD&D activities” means research, development, and demonstration activities.

(b) Interagency coordination committee.—

(1) ESTABLISHMENT.—Not later than 180 days after the date of enactment of this Act, the Secretary and the Secretary of the Interior shall establish the joint NEWS Office and Interagency Coordination Committee on the Nexus of Energy and Water for Sustainability (or the “NEWS Committee”) to carry out the duties described in paragraph (3).

(2) ADMINISTRATION.—

(A) CHAIRS.—The Secretary and the Secretary of the Interior shall jointly manage the NEWS Office and serve as co-chairs of the Interagency Coordination Committee.

(B) MEMBERSHIP; STAFFING.—Membership and staffing shall be determined by the co-chairs.

(3) DUTIES.—The Interagency Coordination Committee shall—

(A) serve as a forum for developing common Federal goals and plans on energy-water nexus RD&D activities in coordination with the National Science and Technology Council;

(B) not later than 1 year after the date of enactment of this Act, and biannually thereafter, issue a strategic plan on energy-water nexus RD&D activities priorities and objectives;

(C) convene and promote coordination of the activities of Federal departments and agencies on energy-water nexus RD&D activities, including the activities of—

(i) the Department;

(ii) the Department of the Interior;

(iii) the Corps of Engineers;

(iv) the Department of Agriculture;

(v) the Department of Defense;

(vi) the Department of State;

(vii) the Environmental Protection Agency;

(viii) the Council on Environmental Quality;

(ix) the National Institute of Standards and Technology;

(x) the National Oceanic and Atmospheric Administration;

(xi) the National Science Foundation;

(xii) the Office of Management and Budget;

(xiii) the Office of Science and Technology Policy;

(xiv) the National Aeronautics and Space Administration; and

(xv) such other Federal departments and agencies as the Interagency Coordination Committee considers appropriate;

(D) (i) coordinate and develop capabilities and methodologies for data collection, management, and dissemination of information related to energy-water nexus RD&D activities from and to other Federal departments and agencies; and

(ii) promote information exchange between Federal departments and agencies—

(I) to identify and document Federal and non-Federal programs and funding opportunities that support basic and applied research, development, and demonstration proposals to advance energy-water nexus related science and technologies;

(II) to leverage existing programs by encouraging joint solicitations, block grants, and matching programs with non-Federal entities; and

(III) to identify opportunities for domestic and international public-private partnerships, innovative financing mechanisms, information and data exchange;

(E) promote the integration of energy-water nexus considerations into existing Federal water, energy, and other natural resource, infrastructure, and science programs at the national and regional levels and with programs administered in partnership with non-Federal entities; and

(F) not later than 1 year after the date of enactment of this Act, issue a report on the potential benefits and feasibility of establishing an energy-water center of excellence within the National Laboratories (as that term is defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)).

(4) NO REGULATION.—Nothing in this subsection grants to the Interagency Coordination Committee the authority to promulgate regulations or set standards.

(5) REVIEW; REPORT.—At the end of the 5-year period beginning on the date on which the Interagency Coordination Committee and NEWS Office are established, the NEWS Office shall—

(A) review the activities, relevance, and effectiveness of the Interagency Coordination Committee; and

(B) submit to the Committee on Energy and Natural Resources of the Senate and the Committees on Science, Space, and Technology, Energy and Commerce, and Natural Resources of the House of Representatives a report that—

(i) describes the results of the review conducted under subparagraph (A); and

(ii) includes a recommendation on whether the Interagency Coordination Committee should continue.

(c) Crosscut budget.—Not later than 30 days after the President submits the budget of the United States Government under section 1105 of title 31, United States Code, the co-chairs of the Interagency Coordination Committee (acting through the NEWS Office) shall submit to the Committee on Energy and Natural Resources of the Senate and the Committees on Science, Space, and Technology, Energy and Commerce, and Natural Resources of the House of Representatives, an interagency budget crosscut report that displays at the program-, project-, and activity-level for each of the Federal agencies that carry out or support (including through grants, contracts, interagency and intraagency transfers, and multiyear and no-year funds) basic and applied RD&D activities to advance the energy-water nexus related science and technologies—

(1) the budget proposed in the budget request of the President for the upcoming fiscal year;

(2) expenditures and obligations for the prior fiscal year; and

(3) estimated expenditures and obligations for the current fiscal year.

SEC. 4102. 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) improve the net energy balance of water, wastewater, and water reuse systems;

“(B) improve the net energy balance 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 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 CInnovation and Office of Science

PART IInnovation

SEC. 4201. Inclusion of early stage technology demonstration in authorized technology transfer activities.

Section 1001 of the Energy Policy Act of 2005 (42 U.S.C. 16391) is amended—

(1) by redesignating subsection (g) as subsection (h); and

(2) by inserting after subsection (f) the following:

“(g) Early stage technology demonstration.—The Secretary shall permit the directors of the National Laboratories to use funds authorized to support technology transfer within the Department to carry out early stage and precommercial technology demonstration activities to remove technology barriers that limit private sector interest and demonstrate potential commercial applications of any research and technologies arising from National Laboratory activities.”.

SEC. 4202. Sense of Congress on accelerating energy innovation.

It is the sense of Congress that—

(1) although important progress has been made in cost reduction and deployment of clean energy technologies, accelerating clean energy innovation will help meet critical competitiveness, energy security, and environmental goals;

(2) accelerating the pace of clean energy innovation in the United States calls for—

(A) supporting existing research and development programs at the Department and the world-class National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801));

(B) exploring and developing new pathways for innovators, investors, and decision-makers to leverage the resources of the Department for addressing the challenges and comparative strengths of geographic regions; and

(C) recognizing the financial constraints of the Department, regularly reviewing clean energy programs to ensure that taxpayer investments are maximized;

(3) the energy supply, demand, policies, markets, and resource options of the United States vary by geographic region;

(4) a regional approach to innovation can bridge the gaps between local talent, institutions, and industries to identify opportunities and convert United States investment into domestic companies; and

(5) Congress, the Secretary, and energy industry participants should advance efforts that promote international, domestic, and regional cooperation on the research and development of energy innovations that—

(A) provide clean, affordable, and reliable energy for everyone;

(B) promote economic growth;

(C) are critical for energy security; and

(D) are sustainable without government support.

SEC. 4203. Restoration of laboratory directed research and development program.

The Secretary shall ensure that laboratory operating contractors do not allocate costs of general and administrative overhead to laboratory directed research and development.

SEC. 4204. Research grants database.

(a) In General.—The Secretary shall establish and maintain a public database, accessible on the website of the Department, that contains a searchable listing of each unclassified research and development project contract, grant, cooperative agreement, task order for a federally funded research and development center, or other transaction administered by the Department.

(b) Classified Projects.—Each year, the Secretary shall submit to the appropriate committees of Congress a report that contains a listing of each classified research and development project contract, grant, cooperative agreement, task order for a federally funded research and development center, or other transaction administered by the Department, including all relevant details of the projects.

(c) Requirements.—Each listing described in subsections (a) and (b) shall include, at a minimum, for each listed project, the Department office carrying out the project, the project name, an abstract or summary of the project, funding levels, project duration, contractor or grantee name (including the names of any subcontractors), and expected objectives and milestones.

(d) Relevant literature and patents.—The Secretary shall provide information through the public database established under subsection (a) on relevant literature and patents that are associated with each research and development project contract, grant, or cooperative agreement, or other transaction, of the Department.

SEC. 4205. Technology transfer and transitions assessment.

Not later than 1 year after the date of enactment of this Act, and as often as the Secretary determines to be necessary thereafter, the Secretary shall transmit to the appropriate committees of Congress a report that includes recommended changes to the policy of the Department and legislative changes to section 1001 of the Energy Policy Act of 2005 (42 U.S.C. 16391) to improve the ability of the Department to successfully transfer new energy technologies to the private sector.

SEC. 4206. Agreements for commercializing technology pilot program.

(a) In general.—The Secretary shall carry out the Agreements for Commercializing Technology pilot program of the Department, as announced by the Secretary on December 8, 2011, in accordance with this section.

(b) Terms.—Each agreement entered into pursuant to the pilot program referred to in subsection (a) shall provide to the contractor of the applicable National Laboratory, to the maximum extent determined to be appropriate by the Secretary, increased authority to negotiate contract terms, such as intellectual property rights, payment structures, performance guarantees, and multiparty collaborations.

(c) Eligibility.—

(1) IN GENERAL.—Any director of a National Laboratory may enter into an agreement pursuant to the pilot program referred to in subsection (a).

(2) AGREEMENTS WITH NON-FEDERAL ENTITIES.—To carry out paragraph (1) and subject to paragraph (3), the Secretary shall permit the directors of the National Laboratories to execute agreements with a non-Federal entity, including a non-Federal entity already receiving Federal funding that will be used to support activities under agreements executed pursuant to paragraph (1), provided that such funding is solely used to carry out the purposes of the Federal award.

(3) RESTRICTION.—The requirements of chapter 18 of title 35, United States Code (commonly known as the “Bayh-Dole Act”), shall apply if—

(A) the agreement is a funding agreement (as that term is defined in section 201 of that title); and

(B) at least one of the parties to the funding agreement is eligible to receive rights under that chapter.

(d) Submission to secretary.—Each affected director of a National Laboratory shall submit to the Secretary, with respect to each agreement entered into under this section—

(1) a summary of information relating to the relevant project;

(2) the total estimated costs of the project;

(3) estimated commencement and completion dates of the project; and

(4) other documentation determined to be appropriate by the Secretary.

(e) Certification.—The Secretary shall require the contractor of the affected National Laboratory to certify that each activity carried out under a project for which an agreement is entered into under this section—

(1) is not in direct competition with the private sector; and

(2) does not present, or minimizes, any apparent conflict of interest, and avoids or neutralizes any actual conflict of interest, as a result of the agreement under this section.

(f) Extension.—The pilot program referred to in subsection (a) shall be extended until September 30, 2019.

(g) Reports.—

(1) OVERALL ASSESSMENT.—Not later than 60 days after the date described in subsection (f), the Secretary, in coordination with directors of the National Laboratories, shall submit to the appropriate committees of Congress a report that—

(A) assesses the overall effectiveness of the pilot program referred to in subsection (a);

(B) identifies opportunities to improve the effectiveness of the pilot program;

(C) assesses the potential for program activities to interfere with the responsibilities of the National Laboratories to the Department; and

(D) provides a recommendation regarding the future of the pilot program.

(2) TRANSPARENCY.—The Secretary, in coordination with directors of the National Laboratories, shall submit to the appropriate committees of Congress an annual report that accounts for all incidences of, and provides a justification for, non-Federal entities using funds derived from a Federal contract or award to carry out agreements pursuant to this section.

SEC. 4207. Short-term cost-share pilot program.

(a) In general.—Section 988(b) of the Energy Policy Act of 2005 (42 U.S.C. 16352(b)) is amended—

(1) in paragraph (1), by striking “Except as provided in paragraphs (2) and (3)” and inserting “Except as provided in paragraphs (2), (3), (4), and (5)”; and

(2) by adding at the end the following:

“(4) EXEMPTION FOR INSTITUTIONS OF HIGHER EDUCATION AND OTHER NONPROFIT INSTITUTIONS.—

“(A) IN GENERAL.—Paragraph (1) shall not apply to a research or development activity performed by an institution of higher education or nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3703)).

“(B) TERMINATION DATE.—The exemption under subparagraph (A) shall apply during the 2-year period beginning on the date of enactment of this paragraph.

“(5) REDUCED COST-SHARING REQUIREMENT FOR SMALL BUSINESS CONCERNS.—

“(A) IN GENERAL.—The non-Federal share required under this subsection for a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) shall be 10 percent.

“(B) TIMING.—A small business concern shall not be required to make the non-Federal contribution applicable to the small business concern under subparagraph (A) before the date that is 180 days after the date on which the award is provided to the small business concern.”.

(b) Reports.—

(1) INITIAL REPORT.—As soon as practicable after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of cost-sharing waivers by the Department under section 988(b) of the Energy Policy Act of 2005 (42 U.S.C. 16352(b)) during the 2-year period ending on the date of enactment of this Act.

(2) ANNUAL REPORTS.—Annually during the 2-year period beginning on the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of cost-sharing waivers by the Department under section 988(b) of the Energy Policy Act of 2005 (42 U.S.C. 16352(b)) during the period covered by the report.

SEC. 4208. Quadrennial energy review.

(a) In general.—Section 801 of the Department of Energy Organization Act (42 U.S.C. 7321) is amended to read as follows:

“SEC. 801. Quadrennial energy review.

“(a) Quadrennial energy review task force.—

“(1) ESTABLISHMENT.—The President shall establish a Quadrennial Energy Review Task Force (referred to in this section as the ‘Task Force’) to coordinate the Quadrennial Energy Review.

“(2) COCHAIRPERSONS.—The President shall designate appropriate senior Federal Government officials to be cochairpersons of the Task Force.

“(3) MEMBERSHIP.—The Task Force may be comprised of representatives at level I or II of the Executive Schedule of—

“(A) the Department;

“(B) the Department of Commerce;

“(C) the Department of Defense;

“(D) the Department of State;

“(E) the Department of the Interior;

“(F) the Department of Agriculture;

“(G) the Department of the Treasury;

“(H) the Department of Transportation;

“(I) the Department of Homeland Security;

“(J) the Office of Management and Budget;

“(K) the National Science Foundation;

“(L) the Environmental Protection Agency; and

“(M) such other Federal agencies, and entities within the Executive Office of the President, as the President considers to be appropriate.

“(b) Conduct of review.—

“(1) IN GENERAL.—Each Quadrennial Energy Review shall be conducted to—

“(A) provide an integrated view of important national energy objectives and Federal energy policy; and

“(B) identify the maximum practicable alignment of research programs, incentives, regulations, and partnerships.

“(2) ELEMENTS.—A Quadrennial Energy Review shall—

“(A) establish integrated, governmentwide national energy objectives in the context of economic, environmental, and security priorities;

“(B) recommend coordinated actions across Federal agencies;

“(C) assess and recommend priorities for research, development, and demonstration;

“(D) provide a strong analytical base for Federal energy policy decisions;

“(E) consider reasonable estimates of future Federal budgetary resources when making recommendations; and

“(F) be conducted with substantial input from—

“(i) Congress;

“(ii) the energy industry;

“(iii) academia;

“(iv) State, local, and tribal governments;

“(v) nongovernmental organizations; and

“(vi) the public.

“(c) Submission of quadrennial energy review to congress.—

“(1) IN GENERAL.—The President—

“(A) shall publish and submit to Congress a report on the Quadrennial Energy Review once every 4 years; and

“(B) more frequently than once every 4 years, as the President determines to be appropriate, may prepare and publish interim reports as part of the Quadrennial Energy Review.

“(2) INCLUSIONS.—The reports described in paragraph (1) shall address or consider, as appropriate—

“(A) an integrated view of short-term, intermediate-term, and long-term objectives for Federal energy policy in the context of economic, environmental, and security priorities;

“(B) potential executive actions (including programmatic, regulatory, and fiscal actions) and resource requirements—

“(i) to achieve the objectives described in subparagraph (A); and

“(ii) to be coordinated across multiple agencies;

“(C) analysis of the existing and prospective roles of parties (including academia, industry, consumers, the public, and Federal agencies) in achieving the objectives described in subparagraph (A), including—

“(i) an analysis by energy use sector, including—

“(I) commercial and residential buildings;

“(II) the industrial sector;

“(III) transportation; and

“(IV) electric power;

“(ii) requirements for invention, adoption, development, and diffusion of energy technologies as they relate to each of the energy use sectors; and

“(iii) other research that informs strategies to incentivize desired actions;

“(D) assessment of policy options to increase domestic energy supplies and energy efficiency;

“(E) evaluation of national and regional energy storage, transmission, and distribution requirements, including requirements for renewable energy;

“(F) portfolio assessments that describe the optimal deployment of resources, including prioritizing financial resources for energy-relevant programs;

“(G) mapping of the linkages among basic research and applied programs, demonstration programs, and other innovation mechanisms across the Federal agencies;

“(H) identification of demonstration projects;

“(I) identification of public and private funding needs for various energy technologies, systems, and infrastructure, including consideration of public-private partnerships, loans, and loan guarantees;

“(J) assessment of global competitors and an identification of programs that can be enhanced with international cooperation;

“(K) identification of policy gaps that need to be filled to accelerate the adoption and diffusion of energy technologies, including consideration of—

“(i) Federal tax policies; and

“(ii) the role of Federal agencies as early adopters and purchasers of new energy technologies;

“(L) priority listing for implementation of objectives and actions taking into account estimated Federal budgetary resources;

“(M) analysis of—

“(i) points of maximum leverage for policy intervention to achieve outcomes; and

“(ii) areas of energy policy that can be most effective in meeting national goals for the energy sector; and

“(N) recommendations for executive branch organization changes to facilitate the development and implementation of Federal energy policies.

“(d) Report development.—The Secretary shall provide such support for the Quadrennial Energy Review with the necessary analytical, financial, and administrative support for the conduct of each Quadrennial Energy Review required under this section as may be requested by the cochairpersons designated under subsection (a)(2).

“(e) Cooperation.—The heads of applicable Federal agencies shall cooperate with the Secretary and provide such assistance, information, and resources as the Secretary may require to assist in carrying out this section.”.

(b) Table of contents amendment.—The item relating to section 801 in the table of contents of such Act is amended to read as follows:


“Sec. 801. Quadrennial Energy Review.”.

(c) Administration.—Nothing in this section or an amendment made by this section supersedes, modifies, amends, or repeals any provision of Federal law not expressly superseded, modified, amended, or repealed by this section.

SEC. 4209. Crosscutting research and development.

(a) In general.—The Secretary shall use the capabilities of the Department to identify strategic opportunities for collaborative research, development, demonstration, and commercial application of innovative science and technologies.

(b) Existing programs; coordination of activities.—To the maximum extent practicable, the Secretary shall seek—

(1) to leverage existing programs of the Department; and

(2) to consolidate and coordinate activities throughout the Department to promote collaboration and crosscutting approaches within programs of the Department.

(c) Additional actions.—The Secretary shall—

(1) prioritize activities that use all affordable domestic resources;

(2) develop a planning, evaluation, and technical assessment framework for setting objective long-term strategic goals and evaluating progress that—

(A) ensures integrity and independence; and

(B) provides the flexibility to adapt to market dynamics;

(3) ensure that activities shall be undertaken in a manner that does not duplicate other activities within the Department or other Federal Government activities; and

(4) identify programs that may be more effectively left to the States, industry, nongovernmental organizations, institutions of higher education, or other stakeholders.

SEC. 4210. Strategic research portfolio analysis and coordination plan.

The Energy Policy Act of 2005 is amended by striking section 994 (42 U.S.C. 16358) and inserting the following:

“SEC. 994. Strategic research portfolio analysis and coordination plan.

“(a) In general.—The Secretary shall periodically review all of the science and technology activities of the Department in a strategic framework that takes into account—